Open Ended Investment Companies (OEICs)

An Open Ended Investment Company (OEIC) is similar to a unit trust, except that it is legally constituted as a limited company.

Umbrella fundsWhat are OEICs?

Also known as an Investment Company with Variable Capital (ICVC), OEICs have been operated from within and out-with the UK since 1997 – before then, OEICs could only be operated outside the UK.

Since OEICs are not trusts, they do not have trustees. Instead, they have a depository that holds the securities, and performs similar duties to a unit trustee.

Often, OEICs operate as umbrella funds, meaning that once the OEIC is authorised, it is also authorised to set up sub-funds. Sub-funds have different investment aims, such as shares in a country in particular, or shares in small companies.

Usually, OIECS have one unit price, plus the initial charge. This is in contrast to unit trusts having two prices – the higher 'offer' price paid when you buy, and the lower 'bid' price for when it is sold back to the managers.

Contact Our OEIC advisers to arrange an appointmentTimeMgt

While we are based in Glasgow, we are happy to travel to visit clients across Scotland and the rest of the UK. For free initial OEIC advice from our experienced financial advisers, contact us on 0141 272 0000 or fill out our online enquiry form.