The benefits of Open-Ended Investment Companies (OEICs) For Ultra High Net Worth Investors (UHNWIs)

      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.

      What is an OEIC?

      Open Ended Investment Companies are collective investment vehicles incorporated in the United Kingdom and authorised and regulated by the Financial Conduct Authority (FCA). OEICs are subject to regulations designed to protect investors; including limits on the types and proportions of different investments that may be held.

      What are the Key features of OEICs?

      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
      • Allocation dates

      What are the Benefits of OEICs?

      • Holding Income and Accumulation Shares – Investors can hold income and/or accumulation shares in an OEIC, which is aligned with the requirement for distributable income
      • Pooling Together Funds – The unique ability of an OEIC to pool together funds can mean that the costs are spread and reporting is simplified
      • Moving Funds – Within an OEIC, funds can be moved from one investment manager to another without crystallising tax charges for the shareholders
      • Cost Savings – 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.

      Contact Us

      Previous post Next post

      More like this

      Waystone is pleased to support the Green Team Network

      See our Green Pledge below from our COO Paul Cahill:
      Read more

      Latest SEC observations on fixed income principal and cross trades

      Background on SEC cross trades risk alert In July 2021, the SEC’s Division of Examinations issued a risk alert on…
      Read more

      Disclosure requirements - Taxonomy Regulation

      The Taxonomy Regulation (EU) 2020/852 (“Taxonomy Regulation”), which supplements the SFDR Regulation (EU) 2019/2088 (“SFDR”), will be partially applicable as…
      Read more

      Setting up a Singapore Variable Capital Company (VCC) - what are the benefits?

      The Singapore Variable Capital Company (VCC) launched on 15 January, 2020 and as of 11 November 2020, over 163 VCCs…
      Read more

      CIMA - Private Funds FAR filing extension & new RFE Form

      On 30 August 2021, the Cayman Islands Monetary Authority (CIMA) issued a notice and made available the Private Funds Related…
      Read more

      Waystone Investment Solutions’ Tosca UCITS Fund grows from $10M to $125M in Q3 of 2021

      Waystone Investment Solutions is pleased to have assisted its client, Tosca UCITS Fund by helping them reach an asset raising…
      Read more