Key Investor Information Document (DFI Prospectus)

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The Fundamental Information Document for the Investor (DFI brochure) is a document that includes the essential information of an investment fund. In Europe, it is mandatory to make it available to the investor by the fund managers.

It is a document commonly known in the sector by its acronym in English (KID: Key Investor Information Document). The purpose of this document is that, after reading it, the investor can reasonably decide on the advisability of investing the fund. In the United States there is a similar document called "Prospectus."

The DFI prospectus is a very useful document for the investor. All this, because it summarizes the fundamental characteristics of the fund schematically. In addition, reading this key investor information document is intended to make it easier for the investor to compare with other mutual funds.

This brochure tries to summarize, in a maximum length of two pages, the most important information about the fund. It is an extract from the complete prospectus of the fund in which it is intended to make it easier for the investor to understand it.

Contents of the Key Investor Information Document (DFI Prospectus)

Depending on the category to which it belongs, the Collective Investment Institution may establish additional sections. However, the minimum content that every DFI brochure must include is the following:

  • Identification: Name, management company, depositary entity, ISIN code, date of incorporation and registration number with the respective regulator (the CNMV in Spain, the FSA in the United Kingdom or the SEC in the United States in the case of the “prospectus”).
  • Investment policy: Categories of financial assets in which you can invest, authorization or not to operate with derivative instruments, Benchmark or reference index, description of the investment objectives.
  • Risk and remuneration profile: It is classified through a scale of 1 to 7 (ordered from lowest to highest risk) based mainly on the level of historical volatility of the IIC and by the percentages of variable income, where appropriate, in the that the fund is normally invested.
  • Expenses and commissions: Distinguishing between those that are borne by the participant from those who are responsible for the assets of the IIC.
  • Historical evolution of the fund: Returns obtained based on different time horizons.
  • Information about the depositary: Identification of the depositary entity and brief reference to the possible conflicts of interest that may arise.
  • Additional information: Minimum initial investment, tax treatment, etc.

Other mandatory documents for IICs

In addition to the fundamental data document for the investor, the regulations include, within the information obligations of investment fund management companies, the publication and dissemination of the following documents:

  • Full brochure.
  • An annual report.
  • A semi-annual report.
  • Two quarterly reports.

Regulation of the DFI brochure in Spain

In Spain, it is regulated, both in Law 35/2003 on Collective Investment Institutions and in the Regulation that develops it, and its publication is part of the information obligations of the IIC.

The content of the prospectus must be disseminated, both to the fund's unitholders and shareholders, as well as to the general public, and must be updated when essential changes are made to its content. It is the National Securities Market Commission (CNMV) that analyzes the content of the document, establishes the formal requirements and supervises that the information obligations are fulfilled.

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