What do Key Investor Information Documents (KIIDs) accompany?

Key Investor Information Documents (KIIDs) are specifically designed to accompany UCITS funds, which stand for Undertakings for Collective Investment in Transferable Securities. UCITS are a set of European Union regulations that provide a framework for investment funds, aimed at ensuring investor protection and creating a standardized information format.

KIIDs are essential for UCITS as they provide clear, concise, and standard information about the fund, including details on the investment objectives, risk and reward profiles, fees and expenses, and past performance. The key purpose of these documents is to help potential investors make informed investment decisions by presenting essential information in a readily accessible manner.

In contrast, real estate investment trusts, pension schemes, and hedge funds do not typically utilize KIIDs as their regulatory frameworks differ and do not require the same standardized documentation aimed explicitly at retail investors. Each of those entities follows distinct regulatory and disclosure requirements, which do not include KIIDs as a necessary accompaniment. This highlights the specific role that KIIDs play in the realm of UCITS, emphasizing their importance for investor understanding and protection within this particular investment category.