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OEICs

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OEICs in detail

Features

  • Invest a single payment or monthly payments
    • Invest in most of our OEIC funds with a single payment of £1,000 or more. Please be aware that the minimum amount depends on the fund(s) being invested into
    • Or make monthly payments, starting from £50 a month
  • If you want to help protect your investment from tax, you can also choose to invest in most of our OEIC funds through an ISA
  • Receive regular statements and have the ability to monitor performance online or by telephone
  • Option to invest on behalf of your children. When the child reaches the age of 18 the child can then hold the investment in their own right.

Investment options

Single or monthly payments?

When you invest in a Scottish Widows OEIC fund, you will be allocated a number of shares. You choose either to make a single payment or monthly payments.

If you invest by single payment, you can choose either Income shares (which could provide you with a regular pay-out of income), or Accumulation shares (any income earned by the shares is kept in the fund to accumulate). The fund price then reflects the fact that this income is automatically reinvested. If you’re investing for income, you should consider funds offering ‘income shares’ instead.

If you decide to invest monthly, only Accumulation shares are available.

Funds available

We offer a variety of OEIC funds, including UK and overseas funds, multi-manager and specialist funds. Our range of funds include exposure to different asset classes such as Cash, Bonds, Property and Equities.

Below is a list of the OEIC funds currently offered by Scottish Widows.

Please note:

  • We may change the selection of funds we make available. OEICs are also known as Investment Companies with Variable Capital (ICVCs).
  • Prospectus changes for the relevant period can be found at the beginning of the interim and annual Long Reports for each ICVC listed below.

Managed Investment Funds ICVC

  • Balanced Growth Portfolio
  • Balanced Portfolio
  • Cautious Portfolio
  • Dynamic Income Portfolio
  • Managed Income Portfolio
  • Momentum Income Portfolio
  • Opportunities Portfolio
  • Progressive Portfolio
  • Stockmarket Growth Portfolio
  • Strategic Growth Portfolio

Overseas Growth Investment Funds ICVC

  • American Growth
  • European Growth
  • European Select Growth
  • Global Growth
  • Global Select Growth
  • Japan Growth
  • Pacific Growth

Tracker and Specialist Investment Funds ICVC

  • UK Tracker
  • Emerging Markets
  • International Bond
  • Latin American
  • UK Smaller Companies

UK and Income Investment Funds ICVC

  • Corporate Bond
  • Environmental Investor
  • Ethical
  • Gilt
  • High Income Bond
  • High Reserve
  • SafetyPlus®
  • Strategic Income
  • UK Equity Income
  • UK Growth
  • UK Select Growth

Investment Solutions Funds ICVC

  • Adventurous Solution
  • Balanced Solution
  • Cautious Solution
  • Defensive Solution
  • Discovery Solution
  • Dynamic Solution
  • Strategic Solution
  • Diversified Portfolio Fund

Income and Growth Funds ICVC

  • Cautious Growth Fund
  • Balanced Growth Fund
  • Progressive Growth Fund
  • Adventurous Growth Fund

Multi-Manager ICVC

  • MM Global Real Estate
  • MM International Equity
  • MM UK Equity Focus
  • MM UK Equity Income
  • MM UK Equity Growth

Investment Portfolio ICVC

  • Asset Allocator
  • IPS Growth Portfolio
  • IPS Income Portfolio
  • IPS Higher Income Portfolio
  • Managed Growth 2
  • Managed Growth 4
  • Managed Growth 6

Key reading

Taxation

Personal Savings Allowance

On 6 April 2016, the Government introduced a Personal Savings Allowance on the interest earned on savings, on interest paying bank accounts and interest distributions from UK OEIC funds. This means:

  • The first £1,000 of savings interest that basic rate taxpayers earn is free from income tax;
  • The Personal Savings Allowance is reduced for higher rate taxpayers, meaning the first £500 of savings interest is free from income tax
  • There is no Personal Savings Allowance for additional rate taxpayers;
  • You'll normally need to pay tax on any savings interest you receive above your Personal Savings Allowance;
  • It is your responsibility to pay any tax you may owe directly to HM Revenue & Customs, according to your individual circumstances.

For more information about the new Personal Savings Allowance, please visit www.gov.uk/hmrc/savingsallowance on the HM Revenue & Customs website. The amount of your Personal Savings Allowance, if any, depends on your own circumstances. If you are in any doubt, then please refer to your tax advisor or local tax office for further guidance.

Interest Distributions

From 6 April 2017, the Government introduced further changes impacting UK OEIC funds by removing the requirement for fund managers to deduct basic rate income tax from interest distributions. Consequently, from April 2017, all interest distributions from your OEIC investments with us will be paid without deduction of income tax (otherwise referred to as being paid ‘gross’). The gross payment is savings income for the purposes of the Personal Savings Allowance, and should be included in your self-assessment tax return.

Dividend Distributions

From 6 April 2016 the UK Dividend Tax Credit was replaced by an annual tax-free Dividend Allowance of £5,000. The Dividend Allowance is separate to your Personal Savings Allowance.

Dividend distributions are classed as taxable income, so you should declare the total amount received or earned to HM Revenue and Customs (HMRC). Depending on your personal circumstances you may have a liability to pay tax on some or all of the dividends received or earned.

For details of the current dividend allowance, please visit www.gov.uk/tax-on-dividends

Capital Gains

Unless you have invested via an Individual Savings Account (ISA), you may have to pay Capital Gains Tax on any gain that you make when you cash in your shares or switch between funds. This might be payable if you sell your investment and make a profit (a gain). If this profit, together with any other gains you have made in that tax year, comes to more than the personal annual exemption limit for that tax year you will have to pay Capital Gains Tax. The Annual Exempt Amount is currently £11,100. This will increase to £11,300 from 6 April 2017.

We have no responsibility for deducting Capital Gains Tax before we pay out your cashed in investments.

Inheritance Tax

When you die the value of your investment will form part of your estate for inheritance tax purposes. The money will remain invested until we receive instructions from your legal representatives.

You must declare your OEIC investments to HM Revenue & Customs.

Risks

  • The value of your OEIC, and any income from it, is not guaranteed and can go up and down depending on investment performance (and currency exchange rate changes where a fund invests overseas). You may get back less than the original amount you invested
  • Each fund has its own risks. Please see the relevant Key and Supplementary Investor Information documents for further information. Links to these documents can be found above
  • The benefits of the tax advantages depend on your personal circumstances
  • Tax rules can change

Need further information?

View our FAQs or contact us.

Not for you?

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