Educational article

OEIC funds explained

Explore our range of Open Ended Investment Company (OEIC) funds

Let’s talk about risk

Past performance is not a guide to future performance. The value of all stock market investments can go down as well as up and you may not get back the full amount originally invested. If you feel you need specific investment advice that takes your individual circumstances fully into account, please talk to a financial adviser. The value of directly held property will reflect the valuations determined by professional independent valuers. Such valuations are the opinion of valuers at a particular time and are likely to be revised. Property and property-related assets can sometimes be illiquid. 

Explore our range of Open Ended Investment Company (OEIC) funds, find out how they work and why you might want to invest in them. 

 
 
What is an OEIC?

An OEIC fund is a professionally managed fund that puts investors’ money into one pot and uses this to invest in a number of different assets around the world. OEIC funds offer the potential for capital growth and income over a medium to long term time period.

OEIC benefits:
  • Choose from a wide range of OEIC funds managed by industry experts
  • Suitable for a range of risk appetites
  • Invest for income, capital growth or a mixture of the two
  • Easily access your investment
  • Switch between funds
  • Your choice of investment style, either £50 per month or a £1000 lump sum

The value of your investment and any income from it is not guaranteed and can go down as well as up. You may not get back the original amount you invested.

These funds come under the name of BMO Global Asset Management. If you are at all unsure we recommend you to speak to your own legal, tax and/or financial adviser before proceeding further with any investment. 

Our OEIC Funds and OEIC Savings Plans
Funds

We have a wide range of OEIC funds that allow you to access investments around the world and across different asset classes, including:

  • Equities
  • Fixed income/bonds
  • Property
  • other funds, known as a ‘Multi Manager’ investment approach
  • Ethical investments through our ‘Responsible’ range of funds

You can find more information on each fund in the Key Investor Information Documents (KIID) at the bottom of this page.

OEIC Savings Plans

You can invest in our OEIC Funds through the OEIC Savings Plan or OEIC ISA Savings Plan by investing either a lump sum of £1000 minimum or setting up a monthly direct debit of £50 per month per fund minimum.

Be aware that if you hold an Investment Trust savings plan, any OEIC investment you make is administered separately, so would not form part of your existing Investment Trust account.

Also because our OEIC ISA is considered to be a different stocks and shares ISA than the BMO ISA, you won’t be able to invest in both during the same tax year.

Start-up and management costs

There’s an initial charge of 5%* for each investment you make. This is taken from your investment when we buy your units.

Each fund also has an Ongoing Charge to cover the cost of running the fund over a year. This charge is calculated on a daily basis and factored into the price of the fund. You can find the charge for each fund detailed in its Key Investor Information Document (KIID) below.

Who can invest in an OEIC?

Anyone over the age of 18 can invest in an OEIC. Those residents or ordinarily residents in the UK can invest through an ISA.

The OEIC Savings Plan is intended for UK investors. We may accept applications from non-UK investors however such accounts may be subject to restrictions or closure and additional information may be needed to confirm the eligibility of an investor for BMO funds.

How do I apply?

You can apply by completing an application form for either the OEIC Savings Plan or the OEIC ISA Savings Plan.

Send this to us with a cheque, payable to BMO Global Asset Management, for the amount that you are looking to invest.

If you are paying by regular, monthly direct debit, your cheque should be for the amount of the first monthly payment.

If you are transferring an ISA from another provider you should complete our ISA Transfer Form and return this to us, we will then arrange the transfer with your existing provider.

Download an application form.

The address to send the forms is in the application checklist at the end of the application form.

Before you go ahead:

  • Choose the fund or funds you want to invest into
  • Choose if you want to do this through the ISA Savings Plan or the OEIC Savings Plan
  • Decide how much you want to invest
  • Make sure you’re happy to go ahead – read the Supplementary information document and KIID for the fund or funds you are investing into
 
 
Frequently Asked Questions

 

 

You can choose to pay by either lump sum or monthly direct debit or a combination of the two.

The minimum investment amount for lump sum payments is £1000 and the minimum monthly payment for regular direct debits is £50 per month per fund.

No, this investment would be administered separately and so you will receive separate statements and have different account numbers for this and any investment trust savings plan you may have.

Statements are sent every six months with values as at the end of February and end of August. You should receive these towards the end of March and end of September each year.

You can contact us about your OEIC investment by phone on 0330 123 3798 or in writing at: BMO Fund Management Limited, PO Box 9040, Chelmsford, Essex, CM99 2XH.

No, we do not offer an online facility for these investments.

Every OEIC fund has its own KIID. This provides important information about the fund that we are required to make available to you. You will need to confirm that you have read the KIID for the fund you are investing into before we can accept your investment.

Literature is available to download at the top right hand side of this page. We will be happy to post this to you if you’d prefer, please contact us by phone (9am – 5pm) on 0800 085 2752 if you would like us to send this.

No, we cannot provide financial advice. The KIID, this website and other documents will provide information on the funds but if you need advice we suggest you contact an Independent Financial Advisor.

You can invest directly with us or through an IFA. If you invest through an IFA you may access different share classes which may have different charges.

Due to the large number of funds available these are not listed on the application form. As there is often more than one share class available for each fund please ensure you write the full fund name, including share class, where indicated on the form.

Investments and sales are done on a forward pricing basis. This means that any instructions received on or before 11.59am on a working day will receive the price calculated as at midday that day. Any instructions received on or after midday will receive the price at midday on the following working day.

The BMO Child Trust Fund and Junior ISA do not offer the OEIC funds as investment options. The one exception is that the BMO FTSE ALL Share Tracker Fund is the investment option in the BMO Child Trust Fund Stakeholder account.

The OEIC Savings Plans do not include products specifically designed for children however the OEIC application form allows you to add a designation to your investment (so you could use the child’s name or initials) and allows you to enter the name(s) of any beneficial owners.

*BMO FTSE All-Share Tracker Fund initial charges are currently reduced to zero. 

Share

Let’s talk about risk

Past performance is not a guide to future performance. The value of all stock market investments can go down as well as up and you may not get back the full amount originally invested. If you feel you need specific investment advice that takes your individual circumstances fully into account, please talk to a financial adviser. The value of directly held property will reflect the valuations determined by professional independent valuers. Such valuations are the opinion of valuers at a particular time and are likely to be revised. Property and property-related assets can sometimes be illiquid. 

Glossary

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Information in this section of the Website is directed solely at persons who are located in the UK and can be categorised as retail clients. Nothing on this website is, or is intended to be, an offer, advice, or an invitation, to buy or sell any investments. Please read our full terms and conditions and the relevant Key Information Documents (“KID”) before proceeding further with any investment product referred to on this website. This website is not suitable for everyone, and if you are at all unsure whether an investment product referenced on this website will meet your individual needs, please seek advice before proceeding further with such product.