• About us
•   |  Ask a question
•   |  Contact us

Compare investment trusts, OEIC and SICAV funds

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.

Key differences between investment trusts, OEICs and SICAVs
	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 No initial charge. Other costs may apply. Brokerage of up to £10 per transaction may be applied to all investments – investment trusts, equities, exchange traded funds and bonds. Stamp duty of 0.5% on purchases. Fixed number of shares in issue when launched (although new shares are sometimes issued). Market demand drives an investment trust’s price which means the shares can be worth more or less than the value of the underlying portfolio of assets The number of shares (or units) expands and contracts with investor demand so the share price always reflects the value of the underlying investments
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. 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

Points to consider

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 Simplified Prospectus 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.