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Important differences between the KIID and Old Mutual Wealth documentation

The Key Investor Information Document (KIID) is produced by the fund manager, not Old Mutual Wealth, and its contents and format are prescribed by the European investment regulator. Therefore, when you read a KIID alongside documentation that has been produced by Old Mutual Wealth (such as the Funds List or Fund Factsheet), you will notice that some information is presented differently. The differences, and the reasons for them, are explained here.

The areas of the KIID that will be different from Old Mutual Wealth documentation are:

Fund objectives
Risk and reward profile
Special risk factors
Fund charges

Fund objectives

The wording of the fund objective may differ slightly between documents, but the actual objective remains the same. This is simply because different disclosure documents are produced by different entities.

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Risk and reward profile

The KIID produced by the find manager and documentation produced by Old Mutual Wealth both use a numerical scale to show the risk rating of a fund.

The KIID uses a scale of 7 risk bands. Funds rated at the lower end are typically lower risk with potentially lower rewards. Those at the upper end are typically higher risk with potentially higher rewards:

KIID risk bands


 
Old Mutual Wealth uses a similar scale, but based on 10 risk bands:

Old Mutual Wealth risk bands 

The reason Old Mutual Wealth documents use the 10-band scale rather than adopting the 7-band scale of the KIID is this:

The scale on the KIID represents the overall risk rating of the fund compared to the entire funds market. However, the majority of funds available through Old Mutual Wealth would actually sit in band 5 on the KIID. So, for us to state that a fund is rated at ‘risk level 5’ on the 7-band scale would not provide adequate differentiation between the hundreds of funds available through our platform.

The diagram below shows how the Old Mutual Wealth risk bands compare against those on the KIID.

You can see from the diagram that the Old Mutual Wealth risk profiling scale breaks down the risk into greater detail by featuring more risk bands. The vertical shaded area shows that, while a fund might be categorised as a risk level 5 in the KIID 7-band scale, the Old Mutual Wealth scale provides four bands within that risk level alone.

Therefore, our 10-band scale helps your financial adviser to give you a more refined view of the risk score for the fund you are investing in through Old Mutual Wealth.

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Special risk factors

The wording of the special risk factors may differ slightly between documents, but the actual risk factors remain the same. This is simply because different disclosure documents are produced by different entities.

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Fund charges

The charges shown in the KIID are in a format prescribed by the European investment regulator, which is appropriate for an investment directly through the relevant fund manager.

As you are investing through Old Mutual Wealth's platform, the charges you will actually pay for the fund are likely to be different, in most cases lower. This is because we use our scale and buying power to negotiate better deals with fund managers.

For accurate details of the actual charges you will pay when investing through Old Mutual Wealth, please see the Old Mutual Wealth Funds List, available from your financial adviser.

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