What is the function of a Fund Facts document in the context of segregated funds?

The Fund Facts document serves a crucial role in the context of segregated funds by providing detailed information specifically about the fund's performance and risks. This document is designed to give potential investors a clear and concise overview of important details they need to consider before investing. It typically includes fundamental data such as the fund's investment objectives, historical performance, risk factors, management fees, and other key features.

Having this information readily available ensures that investors can make informed decisions based on their risk tolerance and investment goals. The focus on transparency in reporting fund performance and associated risks helps maintain regulatory compliance and supports the principle of informed consent in investing. This is especially important in the context of segregated funds, which often have unique characteristics and protections that may not be immediately clear to all investors.

Including details such as fees and performance history empowers investors to compare different funds and understand potential returns relative to the risks involved. Thus, the significance of the Fund Facts document lies in its ability to educate and inform potential investors comprehensively about the segregated fund they are considering.