How to read a Key Investor Information Document (KIID)

How to read a Key Investor Information Document (KIID)

Funds can offer many advantages to investors. There are funds to meet almost any investment goal. But before you invest, it’s important to make sure you’re picking the right one.

All funds have a KIID, or the similar Simplified Prospectus. We require you to confirm that you’ve read the most recent version of the KIID or Simplified Prospectus before making each purchase, irrespective of whether you already hold or have previously dealt in the fund.

The KIID is a two page document which details:

  • Fund objectives and investment policy
  • Risk and reward profile
  • Fund charges
  • Past performance
  • Practical information

An overview of these pages is illustrated in the annotation below, or you can view just the text version.

Example KIID - page 1
Example KIID - page 2

Page 1

Fund objectives and investment policy

The fund manager sets out the fund’s investment objective and explains how they hope to achieve it. You will find information such as the type of assets the fund manager intends to invest in (e.g. shares, bonds, cash), and the geographical or economic sector on which the fund is focused.

Risk and reward profile

The risk reward reflects the significance of the fund’s price fluctuations based on historical data, shown using a risk indicator which consists of a set of numbers from one to seven.

It’s important to note that historical data may not be a reliable indication of the future risk profile of the fund. The risk category of the fund is not guaranteed and may change over time. Further, the lowest category of risk does not mean risk free.

Page 2

Fund Charges

These are: one-off charges taken when you buy or sell; on-going charges taken from the fund over the year; and charges taken from the fund under certain specific conditions. It is important to understand what charges you pay as these can have a significant impact on the value of your investment.

Past Performance

This information shows you how the fund has performed in previous years. It also indicates the extent to which the fund’s performance has fluctuated over the years. Although this is a useful indicator of how the fund has performed to date, you should always bear in mind that past performance is not an indicator of how well a fund might perform in the future.

The performance is given for the specific shareclass of the fund. If the fund has been running many years but the KIID is for a new ‘clean’ shareclass created recently; then only the life of the data for the new shareclass will be here, as in the example shown.

Practical information

Information is given here of the key legal details for the fund including who is responsible for running it, as well as the regulator who provides oversight.

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