Understanding Investment documentation

When researching investments, you may encounter a number of different documents that are intended to help you understand the investment, its objectives and potential risks and rewards.

This section describes the most prevalent documents and the information they typically contain. While some are widely used throughout the industry, we have also developed some of our own to help you understand our range of managed growth funds. The documents produced for any given fund will vary depending on the fund manager and when it was launched.

Key Investor Information Documents

Key Investor Information Documents, or KIIDs, are used across the financial services industry so that different ISA and OEIC (open-ended investment company) funds can be compared easily. They usually focus on the following:

  • The objectives and investment policy of the fund - what it invests in and what its aims are
  • The potential future risk and reward profile - using a standard scale from 1 to 7, with 1 indicating investments with typically lower reward and lower risk, and 7 representing those with higher rewards and higher risks
  • Charges - this will include all relevant charges that apply and how they are taken
  • Past performance - normally displayed in graphical format, this shows how the fund has performed in the past. The time period may differ depending on when the fund was launched, but will always cover a period of at least 12 months. If a fund was launched less than 12 months ago, past performance data will not be included
  • Other practical information – this section will contain anything else you might need to know about the fund and how it operates.

Supplementary Investor Information Documents

Supplementary Investor Information Documents, or SIIDs, are designed to provide additional information that does not usually feature in KIIDs. You may find the following in a SIID:

  • Tax implications
  • How to complain or cancel your investment
  • Details of the available funds
  • Frequently asked questions
  • Generic risks linked to investing
  • Detailed charging information

Fund factsheets

Fund factsheets are usually produced either monthly or quarterly and provide a summary of news on the fund’s performance and structure. They tend to include:

  • Asset allocation - what the fund is invested in
  • Sector breakdown - types of industry sectors the fund invests in
  • Fund aim and basic fund information - this includes fund manager details
  • Fund performance - if the fund was launched over 12 months ago, performance is shown in graphical format
  • Fund manager commentary – commentary on performance and activity, including any changes to fund composition

Our Fund Range and Investments

We have developed this document specifically to ensure our customers fully understand our range of funds, how they are managed, their objectives, risks, charges and terms. It also includes a breakdown of what each fund invests in, and a worked example of how charges are applied in practice.

Fund Information Documents

Like Our Fund Range and Investments, we have designed the Fund Information Documents to help customers decide whether our managed growth funds are suitable for them, including:

  • Fund facts – including underlying investments and objectives
  • Fund details - further information on the risks of the fund and potential future performance