open-ended investment company

(as defined in section 236 of the Act (Open-ended investment companies)) a collective investment scheme which satisfies both the property condition and the investment condition:

1. (a) the property condition is that the property belongs beneficially to, and is managed by or on behalf of, a body corporate ("BC") having as its purpose the investment of its funds with the aim of:
   1. (i) spreading investment risk; and
   2. (ii) giving its members the benefit of the results of the management of those funds by or on behalf of that body;
2. (b) the investment condition is that, in relation to BC, a reasonable investor would, if they118 were to participate in the scheme:
   1. (i) expect that they118 would be able to realise, within a period appearing to them118 to be reasonable, their118 investment in the scheme (represented, at any given time, by the value of shares in, or securities of, BC held by them118 as a participant in the scheme); and
   2. (ii) be satisfied that their118 investment would be realised on a basis calculated wholly or mainly by reference to the value of property in respect of which the scheme makes arrangements.
   (see also investment company with variable capital.)4