A general investment fund refers to a commonly available retail fund. In the Key Facts Statement (KFS) specifically designed for an investment fund, you will find the following sections: quick facts, product profile, objectives and investment strategy, investment mix (optional), key risks, past performance (optional), and guarantee (if any).
Every section deserves your attention, of course. The quick facts section lists the names of the fund manager and trustee and/or custodian, how frequently the investment fund deals, the minimum investment amount, dividend policy, financial year end and base currency. The product profile indicates whether the investment fund is a unit trust or mutual fund, its domicile and home regulator.
Also not to overlook is the objectives and investment strategy of the fund, and whether it will invest in financial derivatives for investment purposes, including the extent to which financial derivatives are used. Based on the fund’s investment strategy and the asset classes invested, the template also briefly lists the risks you should expect. Despite that, you are still advised to refer to the offering document for details of the risks.
Investment fund fees and charges
Finally, don’t forget to check out the fees and charges associated with the fund, including subscription, switching and redemption fees. This section also sets out the ongoing fees deducted directly from the fund, including management fees and performance fees (if any) charged by the fund manager, and fees charged by the custodian, trustee and/or administrator, etc.
Below is a sample KFS for a general investment fund, which gives you an idea about the breadth and depth of fund information you will read: