An open ended investment company (OEIC) is a type of company or fund in the UK that is set up with the purpose of investing in other companies. These companies or funds are able to constantly adjust their investment criteria and fund size. Shares are listed on the London Stock Exchange with the share price mostly related to the underlying assets of the fund. There are no bid and ask quotes for OEIC shares and buyers and sellers receive the same price.
Being open-ended means that OEICs can issue or eliminate shares at any time to adjust the amount of shares in the fund. When shares are issued, the fund receives money that it can then invest. When eliminating shares, the fund has to pay out money from the fund. OEICs often operate as umbrella funds, setting up various sub-funds with different investment aims. The funds can have a mixture of different investment strategies such as income and growth, and small cap and large cap.
We can help you devise an efficient OEIC investment strategy for your investment aims.
*The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.