01415647700 info@fitzallan.com

Open-ended investment companies (OEICs)

OEIC stands for open-ended investment company. Essentially an OEIC is a pooled investment fund of variable size in corporate form. Each fund will have an Authorised Corporate Director to protect the interests of the shareholders, and an Investment Manager will be appointed to manage the investments within the fund. The fund owns investment assets, for example stocks and shares, gilts, bonds and certain other financial instruments.

The size of an OEIC varies reflecting the market value of its underlying investments. It will also fluctuate as investors buy and sell shares in the fund as the OEIC has more or less property to invest. It is in this sense that it is open-ended. The value of each share in the fund will, broadly, reflect the values of the underlying assets.

An OEIC's investors own shares in the company rather than units as in a unit trust. The shareholders have the right to sell their shares back to the OEIC on any dealing day when trading has not been suspended.

The value of investments and income from them can fluctuate (this may partially be the result of exchange rate fluctuations), and investors might not get back the full amount invested. Past performance is not a guide to future performance.

  CII Logo

Fitzallan Limited is authorised and regulated by the Financial Conduct Authority. Financial Services Register No: 401398 http://www.fca.org.uk/register.

Fitzallan Limited Registered Address: 105 West George Street, Glasgow, G2 1PB. Registered in Scotland, No. 263565.

Neither Fitzallan Limited nor its representatives can be held responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

The Financial Conduct Authority does not regulate National Savings or some forms of mortgage, tax planning, taxation and trust advice, offshore investments or school fees planning.

The information contained within this site is subject to the UK regulatory regime and is therefore targeted primarily at consumers based in the UK.

The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk

Please read our Privacy Statement before completing any enquiry form or before sending an email to us.