OEIC (Open Ended Investment Company)
The standard UK open-ended fund structure, used by most modern unit-trust-style funds.
An OEIC is an FCA-authorised investment company whose shares are continually issued and redeemed at NAV. It replaced the older unit trust structure for most new launches from the late 1990s onwards. Each OEIC has an Authorised Corporate Director (the manager) and an independent depositary that safeguards the assets. Pricing is single-swinging (one price for buys and sells with a dilution adjustment), unlike the dual-priced unit trusts of old. Most UK retail funds you buy on Hargreaves Lansdown, AJ Bell, or Vanguard UK are OEICs.
Inside Finlo
A 60-second lesson that puts this term in context, alongside the others, lives inside the Finlo app.