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Investment and risk5.2 Unit trusts and OEICs - Open Ended Investment CompaniesIn this section, we describe the structure, pricing, charges, and uses of OEICs.
Open ended Investment Companies (OEICs) are similar to unit trusts in that they are a diversified collective investment scheme. They are otherwise known as investment companies with variable capital (ICVCs).
Their legal structure is that of a company constituted by an instrument of incorporation and managed to maximise investment returns for investors. Funds are valued on a net as... Shortened demo course. See details at foot of page. ...rella fundThey appoint directors, including the authorised corporate director (ACD) An independent depository is required to safeguard assets (similar to the trustee with unit trust) Full company accounts are issued and laid before shareholders at the AGM Costs of creation may be met by the fund Single pricing applies (although dual pricing can be adopted by the ACD). Authorised corporate director
The OEIC equivalent of the unit trust manager is the authorised corporate director or... Shortened demo course. See details at foot of page. ... distributionsThe ACD’s exercise of the OEICS investment and borrowing powers The safekeeping of assets. Prices of shares within an OEIC represent the total net asset value of the fund divided by the number of shares in issue.
Assets contained in an OEIC are valued... Shortened demo course. See details at foot of page. ...spreads of unit trusts.Note also that since 2006 the ACD can adopt a dual pricing policy in which case valuation is carried out in the same way as unit trusts. Th...
Shortened demo course. See details at foot of page. ...). OEICs are taxed in the same way as that which applies to unit trusts both internally...
Shortened demo course. See details at foot of page. ...e same way as that which applies to unit trusts both internally and to the investor. |
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