Asset manager trade body, the Investment Management Association (IMA) has produced a guide for investors explaining the Key Investor Information Document (KIID).

The KIID is to replace the simplified prospectus and will be a requirement for every UK authorised UCITS fund by July next year.

The two page KIID will include a breakdown of a fund’s objectives and investment policy, charges, risk profile and performance.

The KIID has been designed as a comparative tool to help investors select funds.
 
Victoria Nye, director of education & training at the IMA, said, 'KIIDs are clear, concise and without spin; they are intended to be a simple way for investors to compare the various funds available.

'Our guide will prepare investors by providing a clear explanation of what KIIDs include.'

She added, 'It also acts as a crucial reminder that KIIDs provide only some of the information investors need when making fund choices.'

To receive more relevant articles like this one, why not sign up to our weekly newsletters, click here