Industry Analysis & Industry Trends
Open-ended investment companies (OEICs) have weathered the financial storm well compared with their pooled investment peers. Partly attributable to asset selection and portfolio construction, revenue for OEICs is expected to decline at only an annualised 0.4% over the five years through 2012-13, to $51.4 billion. However, OEICs have been affected by the same systematic risk that caused the FTSE 100 to experience its largest decline in decades.
The recent poor financial market performance has not deterred investments in OEICs. Fund sales suffered a minimal dip in 2007-08, but remained popular with investors despite risk appetites diminishing. Although most OEICs survived the financial crisis unscathed, several were forced to liquidate due to questionable asset selection... purchase to read more
Industry Report - Industry Locations Chapter
A disproportionate amount of OEICs are located in London, due primarily to London's status as one of the world's largest and most sophisticated financial centres. OEICs are generally divisions of fund management firms. As part of fund management firms, OEICs are often headquartered in London for two primary reasons: to be close to institutional clients that are primarily London-based, and to provide an attractive location to attract top portfolio managers and analysts. Edinburgh is the next most important centre for funds management given Scotland's strong tradition in the use of mutual funds, the predecessor of OEICs... purchase to read more