Open-ended investment companies (OEICs) and unit trusts are both a type of collective investment scheme that can constantly adjust investment strategy and fund size. Funds invest in a range of assets, including domestic and global equities, government and corporate bonds and other fixed income securities. OEICs are priced to reflect the net asset value (assets less liabilities) of their investments. While fund styles differ significantly to reflect different risk-return preferences, industry performance is nonetheless highly correlated with the performance of financial markets, particularly equity markets.
Open-ended investment companies (OEICs) are legal entities organised to pool securities or other financial assets, without managing, on behalf of shareholders or beneficiaries. OEICs are authorised by the Financial Services Authority under the Open-Ended Investment Companies (Companies with Variable Capital) Regulations. The industry also includes unit trusts, with the exception of property unit trusts (see IBISWorld report K64.305).
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.