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Types of Closed-Ended Fund by Investment Objective (continued)
In the UK closed-end investment
companies are categorised according to the investment objective as follows:-
Smaller Companies, International
Smaller Companies, UK
Venture & Development Capital
Venture Capital Companies
Split Capital Companies
Most of the above are self-explanatory
but not all:-
Endowment Policies
These funds invest in second-hand
endowment policies. Assured persons not wishing to continue cover on
endowment policies are able to sell their policies to the highest bidder
(such as a closed-end fund) rather than surrender them to insurance
companies
Closed-End Funds
Closed-end funds invest into other
closed-end funds - such a fund is known as a "fund of funds"
Venture Capital Investment Companies
These are investment vehicles
only suitable for sophisticated investors and investing into high risk
unlisted trading companies and providing investors with certain tax
breaks
Split Capital Investment Companies
Investment companies with two,
three, or even four different classes of shares producing different
returns to suit different types of investor (see Split Capital Investment
Companies).