The Benefits of Open-Ended Investment Companies For Ultra High Net Worth Investors

      Open Ended Investment Companies (OEICs) can offer a flexible investment vehicle which Ultra High Net Worth Individuals (UHNWI) may wish to consider when making investment choices.

      UHNWI can hold shares in an OEIC in order to meet their long-term investment aims while ensuring that their investment objectives are also met.

      OEICs allow appointed investment managers to build bespoke global portfolios personalised for UHNWI. In doing so, these fund structures allow a legacy to be created that can be passed down through generations.

      Key features:

      • OEICs are collective investment vehicles incorporated in the United Kingdom and authorised and regulated by the Financial Conduct Authority.OEICs are subject to regulations designed to protect investors; including limits on the types and proportions of different investments that may be held;
      • The prospectus sets out key characteristics of the OEIC, including the investment objective and policy, benchmarks, classes of shares available, minimal initial investment, preliminary charge, annual management charge, annual accounting and allocation dates.

      Benefits:

      • Investors can hold income and/or accumulation shares in an OEIC, which is aligned with the requirement for distributable income;
      • The unique ability of an OEIC to pool together funds can mean that the costs are spread and reporting is simplified;
      • Within an OEIC, funds can be moved from one investment manager to another without crystallising tax charges for the shareholders;
      • VAT is not levied on annual management charges, allowing the saving to be utilised against other fund costs charged by other third-party service partners.

      How can Waystone help?

      As an Authorised Corporate Director (ACD), Waystone’s team of industry experts is well positioned to assist with the set up and ongoing regulatory requirements for OEICs. Our ACD Services team has been designed to meet the specific demands of our clients and provides a comprehensive and high-quality level of service. Our network of service partners will help establish the fund and provide all of the reporting required to satisfy investor requirements.

      To find out more about Waystone’s services for OEIC structures that support UHNWIs, please contact Robin Callander or Neil Coxhead or contact us below.

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