open-end investment company

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Related to Open-Ended Investment Companies: ICVC

Open-End Investment Company

Primarily in the United Kingdom, a mutual fund in which the number of shares may be increased or decreased depending on the amount of money invested in the company. This means that the fund's capitalization is not fixed, and changes upon the demand of shareholders. In other words, an open-end investment company issues new stock when people invest in it, and buys back old shares when investors want to be rid of them. The latter is referred to as redeeming one's share of the mutual fund. The value of each share is the net portfolio value divided by the number of shares. In the United States, this investment vehicle is usually called an open-end mutual fund.

open-end investment company

Open-end investment company.

An open-end investment company issues and redeems, or buys back, shares in the mutual funds it sponsors on a continuous basis in response to investor demand.

The company pools money it raises by selling shares in a fund and the fund's manager invests in stock, bonds, money market instruments, or a combination of these asset classes to meet the fund's specific objectives.

However, the open-end company may stop selling new shares in a fund if it decides the fund has grown too large to invest additional assets effectively.

In contrast, when a closed-end investment company creates a fund, it issues only a limited number of shares, and those shares trade on the secondary market as shares of stock do.

If you purchase fund shares directly from the open-end investment company, you pay the current net asset value (NAV) per share. You also redeem shares at the NAV that's current at the time you sell. If you buy shares through a broker or other investment professional, you may pay an up-front sales charge, or load, in addition to the NAV.

References in periodicals archive ?
(18.) HM TREASURY, OPEN-ENDED INVESTMENT COMPANIES, 3-4 (1996).
34(4) (U.K.); OPEN-ENDED INVESTMENT COMPANIES REGULATIONS, 1996, S.I.
[section][section] 5, 15(8)(f) (U.K.); Open-Ended Investment Companies
TREASURY, OPEN-ENDED INVESTMENT COMPANIES, supra note 18, at 4; OEIC
material in the ICVC regulations [The Open-Ended Investment Companies
Regulations 2001, replacing The Open-Ended Investment Companies
similar manner for open-ended investment companies"); REVIEW OF UK
You could be saving up in ISAs, or trying to build up investments through open-ended investment companies (OEICs)."
Other reports cover how to advance Hong Kong s development as an offshore renminbi centre, facilitating real estate investment trusts, and proposals for regulations related to open-ended investment companies and private equity funds.
Stocks and shares Isas are very different from cash Isas (which should be everyone's first port of call when it comes to saving) because they allow you to put money in to different types of investments - like unit trusts, open-ended investment companies and investment trusts, as well as government bonds and corporate bonds.
Open-Ended Investment Companies (OEICs) and Unit Trusts which employ a specialist manager to use investors' capital in order to generate returns are therefore popular.
In an extension of its existing outsourcing agreement with River and Mercantile, BNY Mellon is now providing middle office services and accounting in support of nine open-ended investment companies (OEICs) and all of River and Mercantile's segregated funds.