The prospectus must contain all information necessary to enable the investor to make an informed assessment of the proposed investment. As a legally required document, the prospectus is offered free of charge to the investor before the conclusion of an agreement. This document provides the investor on the one hand with a comprehensive description of all the undertakings in the UCI (such as administrator, custodian, etc.), and on the other hand with the specific product characteristics of the UCI, including:
• Introduction of the UCI and sub-funds;
• Bodies of the UCI;
• Objective and policy (in which investment instruments will be invested and within the confines of the objective);
• Costs (management fees, reimbursement for financial services, membership fees, etc.);
• Risk attached to a UCI or a sub-fund.
A UCI (or subfund) will only be registered as a public UCI if the regulator has approved the prospectus.
Annual report (periodic report)
In order to monitor the activities and results of the UCI (or sub-fund), the investor can view the annual and semi-annual reports that are made available free of charge. The annual report includes the financial statements, a report on the activities during the past year and a number of figures, including the number of units in circulation, the net asset value (total and per unit) and its evolution, the details of the securities portfolio, and the performance (return). The auditor verifies and certifies the accounts of the UCI. The half-yearly report includes a balance sheet, income statement and some of the data provided in the annual report.
The Key Investor Information Document, hereinafter also referred to as key investor information, is a document that informs the potential investor in a concise and structured way about the essential elements of a UCI. Sometimes this document is referred to in Dutch as EBI document, but Often the acronym 'KII' document will be used (key investor information). The document contains key investor information and is a pre-contractual document which is clearly recognisable by the title "Key Investor Information" on top of the first page. This title is immediately followed by a statement that the document is not marketing material. Pre-contractual means that the customer, prior to his possible purchase transaction, has been given the opportunity to study the document and ask for an explanation. The "issuer" of the UCI is responsible for the correct input of the key investor information. The document contains key investor information and is made freely available to the potential customer. This is normally done in one of two ways: the "distributor" of the UCI provides the potential customer with a paper version or the potential investors consults the document on the website of the "management company". The distributor of the UCI is responsible for notifying the prospective investor about the pre-contractual document.