AIC urges action from FCA as KIDs research suggests 'nonsense' risk results when comparing sister funds

Closed-ended vehicles considered less risky

Research released by the Association of Investment Companies (AIC) comparing investment trust Key Information Documents (KIDs) to open-ended Key Investor Information Documents (KIIDs) suggests OEICs are the riskier product, which chief executive Ian Sayers argued is "nonsense".

In a bid to urge the Financial Conduct Authority (FCA) to review KID Summary Risk Indicators (SRIs) sooner rather than later, the AIC has compared them to KIID Summary Risk and Reward Indicators (SRRIs). The results further support the trade body's criticism that consumers are being misled and it has called on the FCA to act now. The AIC found that of the 56 investment companies which had ‘sister' open-ended funds (share the same manager, strategy and have a significant overlap in terms of portfolio), all of the closed-ended vehicles were considered less risky.  AIC will not presen...