On 27 January 2017, ESMA published a
Q&A on its Guidelines on Alternative Performance Measures
("APMs"). These guidelines apply only to
certain investment funds which fall within the scope of the
Prospectus Directive1 , i.e. certain closed-ended
funds.
An APM is a financial measure of historical or future financial
performance, financial position, or cash flows, other than a
financial measure defined or specified in the applicable financial
reporting framework. Examples of APMs include: operating earnings,
cash earnings, earnings before one-time charges, earnings before
interest, taxes, depreciation and amortisation (EBITDA), net debt,
autonomous growth or similar terms denoting adjustments to line
items of statements of comprehensive income, statements of
financial position or statements of cash flow.
