Miller
Financial Services Unit Trusts and OEIC's
Miller Financial Services Unit Trusts and OEIC's
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Miller
Financial Services - What are OEIC's ?
These plans were introduced to bring the structure of UK Open-Ended
Investment Vehicles into line with the rest of Europe. OEIC’s
combine a number of features of unit trusts and investment
trusts in their make-up. Basically, an OEIC is constituted
as a company so that investors buy shares, rather than units.
The major difference between OEIC’s and investment trusts
is that the number of shares in issue varies according to
demand, hence the use of the expression “Open-Ended”.
This means that the share price always reflects the underlying
asset value and is not affected by market sentiment towards
the OEIC itself. This reduces the risk, which for OEIC’s
in general is broadly in line with unit trusts rather than
investment trusts.
A
further feature is that there is no facility within OEIC’s
to borrow for investment purposes (generally referred to as
gearing) and again this is in line with the unit trust regime
rather than the investment trust regime.
For
further information on Miller Financial Services Unit Trusts
and OEIC's visit the Miller Financial Services website.
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