KIIDs

KIID stands for Key Investor Information Document. It is a standardized, concise document that provides essential information about an investment fund. The purpose of a KIID is to help investors understand the key features, risks, costs, and potential performance of a fund before they invest. This allows for informed decision-making.

KIIDs are legally required in many jurisdictions, particularly within the European Union under regulations like UCITS (Undertakings for Collective Investment in Transferable Securities). They are designed to be easily understood by retail investors, using clear language and avoiding overly technical jargon. Typically, a KIID will cover several key sections. These include a description of the fund's investment objectives and policy, its risk profile, charges and costs, past performance information, and details about the fund manager.

The risk profile section often uses a numerical scale to indicate the level of risk associated with the investment, from lowest to highest. Similarly, past performance is usually presented graphically over a period of years, alongside an indication of whether performance targets have been met. The charges and costs section outlines both one-off and ongoing expenses, such as entry and exit fees, management fees, and other operational costs, often expressed as a percentage of assets. The information contained in a KIID must be kept up-to-date and is usually reviewed at least annually.