How to start a unit/OEIC investment fund?

Do banks offer individuals the ability to start such a fund, what are the costs involved. The undelying asset to the fund will be property in emerging markets.

Further to my question - the fund will be aimed more at private individuals (friends & family) - so looking possibly at a trust account where the bank can hold the invested monies

If you want a bank to put together a fund made up of direct property holdings (ie: mirror an OEIC) on your behalf there should be no problem at all. Just call them up and ask for their Wealth Management department. If you have the money companies like JP Morgan will do pretty much anything you want. There will be transaction costs for the original purchases obviously, and then you can expect to be charged administration (custody) and regulatory fees every quarter. Exact costs will depend on where the property is located and will be negotiable depending on the size of the fund.

The problem will come if you want to sell your OEIC to other investors. There are all sorts of regulations governing this and it would be very very expensive for a bank to offer that service to individuals. So they don't. OEICS are only profitable if you can sell a lot of them, and an individual cannot compete with the established suppliers.

The best way forward might be to go to an established Investment Management company and offer to outsource most of the functions to them. There are not many emerging market property funds out there, they may feel it is possible to make a profit from your idea. In effect you sell them the idea and let them cover all the marketing and regulation costs in return for a cut of the profits.

The setup costs will be in the region of 拢75,000 if you simply want to be part of an existing OEIC umbrella. The you will have upwards of 拢50k of fees per annum after that.

If you want your very own, then add another zero to the end of the figures!

Obviously you need a few million to make this worthwhile.

RBS in Guernsey offer this facility as do Close Brothers - or they did last time I looked into it :)

Good luck.

yes, both people above me are correct. But if you want your own, i have never seen it done for less than 25 million. All the big firms will do it. JP Morgan, Goldman, UBS, Morgan Stanley, etc