Unit trusts and OEICs

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11. Shares in OEICs

Each 'share' in an OEIC represents an equal fraction of the assets of the fund.

• The shares are not tradable on the stock exchange but are bought from the managers and sold back to the managers in a similar way to the buying and selling of units in a unit trust.
• As its title suggests, the OEIC is an open-ended investment vehicle, which means that the number of shares in issue is not fixed and that the managers can create or cancel shares according to demand (just like unit trusts).
• The managers may also issue several different kinds of shares to cater for diverse investors, with different charging structures or denominated in different currencies.

1. What is a unit trust? 2. What is a unit? 3. The trust deed and scheme particulars 4. The people behind a unit trust 5. Charging structure of unit trusts 6. Pricing of units - FSA rules on maximum offer price 7. Pricing of units - FSA rules on minimum bid price 8. Pricing of units - in practice 9. Pricing of units - historic and forward pricing 10. OEICs - Open Ended Investment Companies 11. Shares in OEICs 12. OEICs - pricing 13. OEICs - charges 14. Taxation of unit trusts and OEICs - Introduction 15. Tax treatment of dividends from equity funds 16. Tax treatment of coupons from non-equity funds 17. Capital Gains Tax 18. Tax shelters 19. Investment powers of fund managers: 'eligible investments' 20. Diversification 21. Fund classification: risk gradings 22. Selecting a fund: Defining your objectives 23. Selecting a fund: Active vs passive 24. Selecting a fund: lump sum vs regular savings 25. Selecting a fund: Past performance 26. Where to buy unit trusts and OEICs 27. Buy with or without advice? 28. The mechanics of buying 29. The mechanics of selling 30. Share exchanges and fund switches 31. Investor protection 32. Conclusion

• Exchange Traded Funds