MARKETS: OEIC
A newer form of unit trust, called the open-ended investment company (OIEC), has gradually been introduced in the UK. These are designed to be easier to understand since, instead of separate bid and offer prices, investors buy and sell this managed fund at the same price. This does not make things any cheaper for the investor, since the initial charge is added separately.
Called an OEIC it rests not on trust law but on a separately framed company law. They are a halfway house between unit trusts and investment trusts - the fund expands and contracts on shareholder demand, it has a clearly defined investment strategy with rules on what investments the manager can make and the price reflects the value of the funds investments.
