GUIDE IN PREPARING THE KEY INFORMATION AND INVESTMENT DISCLOSURE STATEMENT
FOR UNIT INVESTMENT TRUST FUNDS
(Appendix to Sec. 414 on Minimum disclosure requirement)
1. The Key Information and Investment Disclosure Statement (KIIDS) is a document intended to provide unit investment trust fund (UITF) participants with key information and disclosures to facilitate better understanding and comparison of UITFs offered by trust entities (TEs).
2. The KIIDS is, preferably a one- sheet document with back-to-back information. The text shall be written in Arial style with font size 10 or its equivalent while the disclosures enumerated below shall be in capital letter and in bold font:
• THE UIT FUND IS NOT A DEPOSIT AND IS NOT INSURED BY THE PHILIPPINE DEPOSIT INSURANCE CORPORATION (PDIC).
• RETURNS CANNOT BE GUARANTEED AND HISTORICAL NAVPu IS FOR ILLUSTRATION OF NAVPu MOVEMENTS/FLUCTUATIONS ONLY.
• WHEN REDEEMIN G, THE PROCEEDS MAY BE WORTH LESS THAN THE ORIGINAL INVESTMENT AND ANY LOSSES SHALL BE SOLELY FOR THE ACCOUNT OF THE CLIENT.
• THE TRUSTEE IS NOT LIABLE FOR ANY LOSS UNLESS UPON WILLFUL DEFAULT, BAD FAITH OR GROSS NEGLIGENCE.
3. The attached format serves as a standard template in preparing the KIIDS. The headings, lay-outs and disclosures inside the boxes shall be strictly followed; nonetheless, the trustee may opt to add sub- headings provided that these additions shall result to clearer disclosure of key information.
4. The trustee shall use clear and plain language to ensure that the participants can easily understand the disclosures contained therein.
5. The use of diagrams such as graphs, charts, flowcharts, tables or numerical explanations is highly encouraged.
6. The trustee is advised to be judicious in deciding the information to be disclosed. The KIIDS shall give a fair and balanced view of the investments and shall ensure that no material information is omitted if such omission would make the KIIDS to be misleading. Examples are presented for illustration purposes only and are not meant to be prescribed or exhaustive.
7. The trustee shall include a web address for online access of other disclosure documents, educational resources or explanatory materials. However, key information shall be clearly disclosed in the KIIDS and not merely referred to other sources.
(As amended by Circular Nos. 876 dated 20 April 2015, 852 dated 21 October 2014)
___________________________________________________________________________
(Name of Bank)
(Name of UIT Fund)
KEY INFORMATION AND INVESTMENT DISCLOSURE STATEMENT
(Reporting Period)
| FUND FACTS:_______________________________________________________________ | |
| Classification:________________________ | Net Asset value per unit (NAVPu): ______ |
| Launch Date:____________________________ | Total Fund NAV: _______________ |
| Minimum Investment: ___________________ | Dealing Day: _________________ |
| Additional Investment: ____________________ | Redemption Settlement: _______ |
| Minimum Holding Period___________________ | Early Redemption Charge: ________ |
FEES*(Indicate trustee fees and special reimbursable expenses, as necessary)
| Trustee Fees: _____% (Name of Trustee) |
Custodianship Fees: _____% (Name of Custodian) |
External Auditor Fees: _____% (Name of External Auditor) |
Other Fees: _____% (Please specify) |
* As a percentage of average daily NAV for the quarter valued at____.
INVESTMENT OBJECTIVE AND STRATEGY
[Indicate the investment objective of the fund and the strategies on how to attain the said objective]
Example:
The Fund intends to achieve for its participants long-term capital growth by investing into the extent possible, equity securities issued by Philippine domiciled companies which have a value style bias. The Fund aims to provide returns in excess of the return of the Philippine Stock Exchange Index (PSEI).
CLIENT SUITABILITY
A client profiling process shall be performed prior to participating in the Fund to guide the prospective investor if the Fund is suited to his/her investment objectives and risk tolerance. Clients are advised to read the Declaration of Trust/Plan Rules of the Fund, which may be obtained from the Trustee, before deciding to invest.
– The (Name of the Fund) is suitable only for investors who:
o [Indicate the risk profile of the target investors/participants]
o [Indicate if the principal will be at risk]
o [Indicate the recommended investment horizon of a participant]
o [Indicate other key characteristics of the fund which can help investors determine if it is suitable for them]
Example:
– The Equity Fund is suitable only for investors who:
o Have aggresive risk appetite
o Are comfortable with the greater volatility and risks of an equity fund
– Participants are recommended to stay invested in an equity fund for three (3) years
KEY RISKS AND RISK MANAGEMENT
You should not invest in this Fund if you do not understand or are not comfortable with the accompanying risks.
Example:
– Market risks. You have greater exposure to market risks as this is an equity fund since equities usually have greater volatility than bonds and other fixed income securities.
– The Fund employs a risk management policy based on duration. Duration measures the sensitivity of NAVPu to interest rate movements. As interest rates rise, bond prices fall. The higher the duration, the more NAVPu will fluctuate in relation to changes in interest rates.
o THE UIT FUND IS NOT A DEPOSIT AND IS NOT INSURED BY THE PHILIPPINE DEPOSIT INSURANCE CORPORATION (PDIC).
o RETURNS CANNOT BE GUARANTEED AND HISTORICAL NAVPu IS FOR ILLUSTRATION OF NAVPu MOVEMENTS/FLUCTUATIONS ONLY.
o WHEN REDEEMING, THE PROCEEDS MAY BE WORTH LESS THAN THE ORIGINAL INVESTMENT AND ANY LOSSES WILL BE SOLELY FOR THE ACCOUNT OF THE CLIENT.
o THE TRUSTEE IS NOT LIABLE FOR ANY LOSS UNLESS UPON WILLFUL DEFAULT, BAD FAITH OR GROSS NEGLIGENCE.
(Indicate contact details of the trustee which investors can use if they have queries, include a website address, e-mail address and telephone number)
___________________________________________________________________________
FUND PERFORMANCE AND STATISTICS AS OF JUNE 30, 2014
(PURELY FOR REFERENCE PURPOSES AND IS NOT A GUARANTEE OF FUTURE RESULTS)
OTHER DISCLOSURES
[Indicate RELATED PARTY TRANSACTIONS, prospective investments and other disclosures deemed necessary or relevant] [This heading may be changed as appropriate]
Example:
RELATED PARTY TRANSACTIONS
The Fund has deposits with the Bank Proper and investments in ABC Co., a wholly-owned subsidiary of the Bank, amounting to Pxxx and Pxxx, respectively, which were approved by the Board of Directors. Likewise, all related party transactions are conducted on an arm’s length basis.
OUTLOOK AND STRATEGY
The Fund took advantage of the pockets of rallies supported by the substantial liquidity in the system. It took profit on its bond holdings across the curve in anticipation of increased volatility in the months ahead. Market corrections are likewise seen as opportunities to reposition in the more liquid and tradable bonds. Nonetheless, amidst prospects of further SDA rate hikes, we maintain our overall defensive stance. The Fund’s prospective investments include xxx.