Covid-19 highlights PRIIPs' performance predictions flaws - reports

Returns 'fall short of forecasts'

Mike Sheen
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Short-term investment products were particularly vulnerable to falling short of their performance forecasts
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Short-term investment products were particularly vulnerable to falling short of their performance forecasts

The market correction seen in the first quarter in 2020 as a result of the impact of the coronavirus pandemic has highlighted flaws in the controversial future performance predictions under the PRIIPs regulation, with investor returns falling short of funds' forecasts, according to research from Schroders.

PRIIPs, which was introduced in 2018, forces retail investment product providers to publish future performance predictions reflecting a range of scenarios under different market conditions. The research...

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