The Srri (Synthetic Risk and Reward Indicator) is a standardized characteristic value in Europe, the one Risk- and earnings potential of an investment fund makes visible at a glance. It is a central part of the so -called Priips-kid (Basic information sheet according to the EU regulation for packaged investment products for small investors and insurance system products) and should help private investors in particular, die Risiken verschiedener Fonds besser einschätzen und vergleichen zu können.

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Die Srri-Skala: From security to fluctuation

The SRRI scale ranges from 1 (very low risk) bis 7 (very high risk):

The risk class shows, how much the value of the fund has fluctuated in the past - it is therefore an indicator of the historical Volatility.

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How is the SRRI calculated?

The calculation of the SRRI is based on the volatility of the fund, So on the intensity of the fluctuations in the value over a period of usually five years.

Calculation steps at an overview:

1. Analyse der wöchentlichen Renditen des Fonds über fünf Jahre.
2. Calculation of the standard deviation of these returns (Measure for the width of fluctuations).
3. Einstufung in eine SRRI-Klasse gemäß den Schwellenwerten der Europäischen Aufsichtsbehörden.

The higher the fluctuations, desto höher die Risikoklasse.

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Risk and return - a necessary connection

Basically applies, The higher the risk, the greater the return potential - but also the probability of losses. Fund with low SRRI class (1–2) are characterized by low fluctuations, but also lower earnings expectations. Fund with high risk class (6–7) offer higher chances of return in the long term, unterliegen jedoch stärkeren Kursschwankungen.

The SRRI is based exclusively on past data. Er stellt keine Prognose für die künftige Wertentwicklung dar und sollte immer im Zusammenhang mit weiteren Informationen im PRIIPs-KID betrachtet werden.

Investor types and the Priips-Kid-who gets what information?

The obligation to provide a Priips kid (Basic information blast) - and with it the Srri (Synthetic Risk and Reward Indicator) - depends heavily on the type of investor. Is crucial, whether it is private investors, Semi-professional investor (Only in Germany) oder professionelle Anleger handelt.

Private investor

Privatanleger sind Personen ohne institutionellen Hintergrund oder besondere fachliche Kenntnisse in der Kapitalanlage.
This is for this group of investors Priips-Kid required by law and Must before buying eines entsprechenden Finanzprodukts übergeben werden.

• The Srri is part of the kid and should help, das Risiko des Produkts verständlich einzuordnen.
• The goal is, die Vergleichbarkeit von Finanzprodukten zu fördern und den Anlegerschutz zu stärken.

Semi-professional investor-a special feature only in Germany

The category of Semi-professional investor Exists in exclusively in Deutschland and is in this form Not part of the European Priips Ordinance. She was in German Investment network (Kagb) introduced, To an additional group of investors between private- und professionellen Investoren zu schaffen.

Characteristics of semi-professional investors:

• Mindestanlage von 200.000 Euro.
• Written explanation, dass sie sich der Risiken bewusst sind.
• Confirmation, über notwendige Kenntnisse und Erfahrungen zu verfügen.

With regard to the Priips Kid, that means:

• Nach europäischem Recht sind semi-professionelle Anleger formal wie professionelle Anleger zu behandeln.
• That means: There is no legal obligation, ihnen ein KID bereitzustellen.
• In practice, providers can still voluntarily provide a kid, insbesondere wenn Produkte auch für private Investoren zugänglich sind oder es aus Transparenzgründen gewünscht ist.

Professional investors

Professional investors (z. B. Bank, Insurance, Fund manager, Institutional investors) are considered sufficiently expert, um Finanzprodukte ohne standardisierte Informationsblätter wie das KID beurteilen zu können.

• Für sie besteht keine Pflicht zur Aushändigung eines PRIIPs-KID.
• The SRRI is also not prescribed, kann aber im Rahmen interner Risikoberichte oder anderer aufsichtsrechtlicher Dokumente verwendet werden.

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European context and peculiarity of Germany

In the European Priips Ordinance, a distinction is made between private investors and professional investors. The German regulation of the semi-professional investor is a national addition, which has no legal equivalent in the EU context. Therefore, there is no semi-professional category in all other EU member states. Semi-professional investors in Germany are treated under EU law and professional investors, auch wenn sie aus Sicht des KAGB Sonderregelungen unterliegen.