Savings & Investments
Unit Trusts & OEICs
Professionally managed pooled investment funds offering diversified exposure across equities, bonds, property and more. Independent, whole-of-market advice from SBC Financial.
What Are Unit Trusts & OEICs?
Unit trusts and Open-Ended Investment Companies (OEICs) are two of the most widely used collective investment vehicles in the UK. Both pool money from multiple investors and use it to buy a diversified portfolio of assets — typically managed by a professional fund manager.
While they differ slightly in their legal structure and pricing, unit trusts and OEICs function in a very similar way for most investors. They offer a straightforward route to diversified, professionally managed investment — without the need to select and monitor individual stocks yourself.
Both can be held within tax-efficient wrappers such as a Stocks & Shares ISA or a Self-Invested Personal Pension (SIPP), making them a versatile building block for long-term financial planning. SBC Financial can help you select the most appropriate funds and wrappers for your individual circumstances.
Unit Trust vs. OEIC: Key Differences
| Feature | Unit Trust | OEIC |
|---|---|---|
| Structure | Trust-based. Investors hold "units" in the fund. | Company-based. Investors hold "shares" in the fund. |
| Pricing | Dual-priced: separate buy (offer) and sell (bid) prices. | Single-priced: one price for both buying and selling. |
| Transparency | Slightly less transparent pricing structure. | Simpler, more transparent single-price structure. |
| Regulation | Regulated by the FCA under the COLL Sourcebook. | Regulated by the FCA; governed by the OEIC Regulations 2001. |
For most investors, the practical difference between a unit trust and an OEIC is minimal. We will recommend whichever structure best suits your needs.
Asset Classes Available
Unit trusts and OEICs cover virtually every investable asset class. We help you build a portfolio that matches your risk profile and objectives.
UK Equities
Shares in companies listed on the London Stock Exchange, including FTSE 100, FTSE 250 and smaller companies.
Global Equities
Exposure to international stock markets across North America, Europe, Asia-Pacific and emerging markets.
Fixed Income (Bonds)
Government gilts, corporate bonds and high-yield bonds offering more stable, income-generating returns.
Property
Commercial and residential property exposure through specialist property funds and REITs.
Multi-Asset
Blended funds combining equities, bonds, property and other assets for built-in diversification.
Specialist Sectors
Technology, healthcare, infrastructure, commodities and other sector-specific funds for targeted exposure.
Why Invest in Unit Trusts & OEICs?
Pooled Investment
Your money is pooled with other investors, giving you access to a diversified portfolio that would be difficult and expensive to replicate individually.
Professional Management
Active funds are managed by experienced fund managers who research and select investments on your behalf, aiming to outperform the market.
Wide Range of Options
Thousands of unit trusts and OEICs are available across every asset class, geography and risk level — we help you navigate the options.
Flexible & Accessible
Most unit trusts and OEICs can be bought and sold on any business day, offering liquidity alongside long-term growth potential.
Holding Funds in a Tax-Efficient Wrapper
Where you hold your unit trusts and OEICs matters as much as what you invest in. We advise on the most tax-efficient wrapper for your circumstances.
| Wrapper | Tax Benefit |
|---|---|
| Stocks & Shares ISA | All growth and income tax-free. No CGT on gains. |
| Pension (SIPP) | Tax relief on contributions. Growth tax-deferred until withdrawal. |
| Investment Bond | Tax-deferred growth. 5% annual withdrawal allowance. |
| General Investment Account | No wrapper — subject to Income Tax and CGT, but no contribution limits. |
Find the Right Funds for Your Goals
With thousands of unit trusts and OEICs available, choosing the right ones can be overwhelming. Our independent advisers do the research for you.
Get in TouchRisk warning: The value of investments and the income from them can fall as well as rise. You may get back less than you invest. Past performance is not a reliable indicator of future results. Tax treatment depends on individual circumstances and may be subject to change. This information is for guidance only and does not constitute personal financial advice.