What is the difference between an OEIC and a UCITS?

UCITS funds can be sold to any investor within the EU under a harmonised regulatory regime. The UK OEICs still follow all the same rules and regulations as UCITS funds, but they can no longer be marketed using a UCITS passport in the EU.

What does OEICs stand for?

open ended investment company
An open ended investment company (OEIC) is a type of fund sold in the United Kingdom, similar to an open ended mutual fund in the U.S. OEICs offer a professionally managed portfolio of pooled investor funds that invests in different equities, bonds, and other securities.

What is the difference between an OEIC and an ICVC?

ICVC are structured in such a way that they can be offered on a pan-European basis. The structure has also been known as an OEIC, standing for Open Ended Investment Company. An ICVC is structured as a company, and is controlled by an Authorised Corporate Director (ACD), who fulfils the role of fund manager.

What is the difference between unit trusts and OEICs?

Both fund vehicles can invest in a wide range of asset classes, geographies and sectors. A subtle difference is a unit trust is governed by trust law, whereas an OEIC is governed by company law. ‘Technically, this means investors in a unit trust are not owners of the underlying assets, unlike investors in an OEIC.

Are Vanguard funds OEIC?

We select our fund domiciles based upon a number of criteria including tax efficiency, costs, economies of scale, and the ability to implement our investment strategy. Given these factors, we have selected a combination of UK-domiciled OEICs and Ireland domiciled UCITS funds.

Is an ICVC a UCITS?

These changes brought the formation of ICVCs under control of the FSA and removed the automatic inclusion of an ICVC under the UCITS directive allowing scope for non-UCITS investments (e.g., money market funds, property funds and funds of funds).

Are OEICs limited liability?

OEICs are structurally different to their more established unit trust counterparts too; as limited liability companies rather than trusts.

Is an OEIC an ETF?

Trackers can either be Exchange Traded Funds (ETFs), unit trusts, or Open Ended Investment Companies (OEICs). You need to understand the differences between these funds before you invest. Our guide can help you figure out which type of tracker is right for your portfolio.

Who regulates OEIC?

An actively managed OEIC may not hold more than 20% of the shares in any one company. Regulated by the FCA.