A collective investment fund which increases and decreases in size as investors enter and leave it.
Open-ended funds are constantly expanding and contracting as investors move their money in and out. This means fund managers have to manage the fund to be able to meet the demands of investors who may want their money back at any time. Because of this, open-ended funds are often restricted to investing in liquid assets.
The order in which income and capital returns are paid to different classes of share. The lower it is in the order of priority, the riskier the share class is.
Learn more about split capital investment companies.
A type of share issued by a split capital investment company which can offer both a higher level of income and the prospect of capital growth.
These shares are also known as highly geared ordinary shares or income and residual capital shares. Unlike an income share, they don’t aim to pay a fixed sum on wind up. They may also not have a fixed life.
Learn more about ordinary income shares