Edinburgh Fund Managers is set to convert its £600m in unit trusts into an Oeic.
Group sales and marketing director Nigel Whittingham says the company is committed to transferring all its 21 unit trusts into open-ended investments.
Edinburgh's unit trust business represents 12 per cent of its £7.4bn total assets under management
It also has £3.8bn in investment trusts, £300m held by private clients, £2bn in pension funds and £700m in North America.
Whittingham says: "We are committed to Oeics and believe they offer a natural rationalisation of the unit-trust ind ustry. It is too early to say when conversions will take place but it is more than one year away and could be some time in 1999. Oeics is the direction the market is going towards and we want to be part of this and do not intend to be left behind."