Phone:01257 233023 | info@annewray.org
OEICs
Open Ended Investment Companies (OEICs)
An OEIC works in a very similar way to a unit trust except that an OEIC is legally constituted as a limited company (Plc). OEICS have been operating outside the UK for some time, but only since 1997 has it been possible to operate an OEIC in the UK.
OEICS are not trusts and do not therefore have a trustee. Instead, however, they have a depository which holds the securities, and has similar duties to a unit trust trustee.
Most OEICS operate as umbrella funds which means that the OEIC is authorised and then can set up sub-funds without gaining individual authorisation for individual sub-funds. Each sub-fund has different investment aims, e.g. a sub-fund may specialise in the shares of small companies or in a particular country, e.g. the USA. Each sub-fund can also have different charges and minimum and maximum investments. Unit trusts are allowed to do this too, but few do.
Most OEICS only have one unit price and the initial charge is added as an extra. Unit trusts always have two prices, the lower or bid price is what you get when you sell back to the managers; the higher or offer price is what you have to pay when you buy.
Levels and bases of and reliefs from taxation are subject to change and their value depends on the individual circumstances of the investor.
The value of your investment can go down as well as up and you may not get back the full amount invested.
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Company address: Anne Wray - Old Chapel House, 3 Heapey Road, Chorley, Lancashire, PR6 9BD
T: 01257 233023
F: 01257 233022
Email: info@annewray.org
Anne Wray Independent Financial Adviser is An Appointed Representative of Sesame Ltd.,
which is authorised and regulated by the Financial Services Authority
Sesame Ltd is entered on the FSA register (www.fsa.gov.uk/register/) under reference 150427
Commercial Loans are not arranged via Sesame.
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The advice and / or guidance contained within this site is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.