Unit Trusts

A trust where each unit holder is entitled to share in the assets of

the trust in proportion to the number of units owned. Control is
exercised by Managers, subject to approval by Trustees within
the terms of the Trust Deed.
Open ended. All sales and purchases are dealt for cash and go to and from the managers. Net redemption's will
lead to the managers having to sell some of the underlying investments to meet the demand for cash.
Price of a unit is based on net asset value (NAV) of the underlying investments.
Dealing costs are normally front-end loaded with a bid offer spread on dual price funds and an initial charge on
single priced funds.
UTs can have only one class of unit and all units are to be treated equally.
UTs are allowed to advertise subject to approval by the Trustees.
Annual management charges are typically 0.75% to 1.5% but this will depend upon whether 'clean' or 'retail'
share classes are invested into. Our Advisers can explain this in more detail.

Investment Companies

A public limited company whose shares are listed on the Stock Exchange.
Management is exercised by Directors, subject to the
Memorandum and Articles of Association.
Closed ended. Shares are dealt on a secondary market. Therefore, in the secondary market there is no cash flow
into or out of the fund.
Price of a share is not laid down by any formula but set by normal market forces. This can result in a share price
sitting at a discount to NAV or a premium to NAV and increases volatility compared with UTs.
Shares are bought and sold on the Stock Exchange and therefore costs include brokerage, stamp duty and PTM
levy.
ICs may issue different classes of share. This can include long term borrowing, and introduces the concept
of gearing.
Its are not allowed to advertise to the public to buy their shares (concessions are given for some new issues and
IT savings schemes).
Annual management charges are typically around 1% although this can vary. Please speak to one of our advisers
who will explain the specific charges for a particular investment.