Understanding investment documentation

When you are considering any investment, you will encounter a range of documents that are designed to help you understand what you are investing in and how it works.

In this section, we have summarised the main documents available, and the information they typically contain. Some of these documents are widely used throughout the industry, and we’ve also developed some of our own to help you make the most of 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, 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 contain details of:

    • The objectives and investment policy of the fund (what it invests in and what its aims are)
    • The potential future risk and reward profile, which uses a standard scale from 1 to 7, with 1 being investments with typically lower reward and lower risk, and 7 being those with higher rewards and higher risks
    • Charges. This will include all relevant charges that apply and how they are taken
    • Past performance, which is normally shown as a chart, showing how the fund has performed in the past. The time period may be different depending on when the fund was launched, but will always be 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 covers anything else you might need to know about the fund and how it operates
  • Supplementary Investor Information Documents, or SIIDs, are designed to give investors extra details about investments that aren’t usually contained in KIIDs. This can include the following information:

    • Tax implications
    • Details of the available funds
    • Frequently asked questions
    • Generic risks linked to investing
    • Detailed charging information
    • How to complain or cancel your investment
  • Fund factsheets are usually produced either monthly or quarterly and updated with news on the fund’s performance and structure. They tend to include:

    • Asset allocation (what the fund is invested in)
    • Sector breakdown (which types of industry sectors it's invested in)
    • Fund aim and basic fund information (including fund manager details)
    • Fund performance if fund launched over 12 months ago (performance since fund launch shown in graphical format)
    • Fund manager commentary on performance and activity, including any changes to what the fund invests in
  • This is a document that we’ve developed especially to help you understand our online 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 examples of the charges you’ll pay if you invest a certain amount.

  • Again, this isn’t something that’s usually produced across the industry. We chose to put these together to help you decide whether our funds are right for you. They contain details of:

    • Fund facts – including what the fund invests in and its aims
    • Fund details – more detail on the risks of the fund and the potential future performance

Understand the risks

The value of an investment can fall as well as rise, and you may get back less than you invest. If you are not sure about investing, seek independent advice.