If you want to make the most from your investments a professionally managed fund may be a good choice to get diverse exposure to world stock and bond markets.
The table below highlights some of the differences between investment trusts, OEIC and SICAV funds.
|
|
Investment trust | OEIC fund | SICAV fund |
|---|---|---|---|
| Legal structure | Public limited company | Investment company: hold shares of other companies purely for investment purposes. It invests money on behalf of its shareholders who in turn share in the profits and losses | |
| Where based | UK /offshore | UK | Continental Europe ‘offshore’ |
| Type of holding | Listed share – a share that is traded on a particular stock market | Unlisted share –a share that is not listed on a particular stock market | |
| Investment structure | Closed-ended | Open-ended | |
| Pricing | Dealing prices are subject to a ‘bid-offer spread’. This is the difference between the price at which shares can be sold and bought | Usually have a single price associated with the share whether buying or selling | |
| Typical costs e.g. when held within the J.P. Morgan ISA* |
No initial charge. Other costs may apply. |
No initial charge. No stamp duty. |
|
| Annual account fee from 0 – 0.5%. | |||
| Gearing (borrowing) limits of fund | Level of gearing decided by board and portfolio manager and limited by company objectives | Usually don’t use gearing – see Simplified Prospectus for more details | |
| Covered by UK Financial Services Compensation Scheme (FSCS) | Yes, if purchased through an FSA-regulated product such as an ISA, savings scheme, or pension, or through a regulated adviser | Yes | When marketed by a company authorised by the Financial Services Authority such as J.P. Morgan Asset Management, investors are covered by the FSCS |
Past performance is no guarantee of future performance, the value of investments and the income from them may fall as well as rise and you may not get back the original sum invested. Please always read the Key Features and Terms and Conditions together with either the Key Investor Information Document or Investment Trust Profiles, depending on the investment you decide to make.
*J.P. Morgan ISA costs are shown as an example. For J.P. Morgan Investment Account and J.P. Morgan SIPP costs, please see the Key Features and Terms and Conditions.
