Investment fund fact sheets

A fact sheet is an important marketing document that provides key pieces of information about a fund, such as its historic performance, risk profile and fees.

While they may appear dry, fact sheets are integral to investor decision-making and should be clear, concise and accessible. Fact sheets help investors understand what a fund invests in, who manages it and the levels of risk and return they’re likely to experience if they choose to invest.

Financial markets rely on investors making informed decisions, so capital can be channeled towards high-quality businesses and financial products. Fact sheets help create a level of transparency that therefore benefits both investors and the overall market.

A typical investment fund fact sheet will contain:

  • The fund’s name and objective: The fund’s name is listed and a summary of its objective or investment approach appears.
  • Performance data: This section typically includes a table displaying the fund’s performance over various time periods, such as one year, three years and five years, compared to a relevant benchmark. It may also include a chart that expresses this performance visually.
  • Risk and return profile: This section provides detail on the level of risk the fund is likely to be exposed to and the returns it could realistically deliver.
  • Fees and expenses: This section lists the fees and expenses that investing in the fund will incur.
  • Portfolio holdings: This section lists the securities held by the fund, along with their weighting in the portfolio. It may also include a breakdown of the portfolio by asset class, sector or geographic region.
  • Management team and investment process: This section provides information about the fund’s management team and their particular investment style, including their approach to research and analysis.
  • Key risks and considerations: This section offers a broad warning to investors that any investment inevitably incurs a degree of risk. Examples of risk include market risk (the risk of changes in the market damaging the value of your investments) and liquidity risk (the risk of not being able to sell an asset you hold).

Overall, a fact sheet provides investors with a concise and standardised summary of key information regarding an investment fund, which is designed to help them make informed investment decisions.