Unit Investment Trust's - UITs

A Unit Investment Trust (UIT) is a registered investment company that offers a fixed portfolio of equity and/or fixed income securities. These securities are chosen by professional money managers to accomplish the stated investment objectives of the trust for a set period of time.

The investment portfolio of a UIT is available for purchase in the form of units, which represent an investor’s undivided stake in the total portfolio. UITs allow an investor to receive regular income from the trust, depending upon the type of UIT.

  • Fixed Income UITs—Designed to generate a relatively predictable and stable stream of income over the life of the trust.
  • Equity UITs—Designed to achieve specific investment objectives through portfolios which historically have greater growth potential but also have a higher degree of risk.

A UIT offers investors an opportunity to easily diversify their investments and to allocate assets across a broad range of securities. Choosing a combination of fixed income and equity UITs can be an important component of a successful investment strategy.

The nature of a UIT is unique in that it offers the individual investor diversification, professional investment selection, distributions, and reinvestment and rollover options—all within a fixed portfolio of securities.

I would be happy to determine if UITs fit with your overall investment strategy. I will help you identify your investment objectives, goals and risk tolerance. With your personal investor profile in mind, together you can decide if UITs should be incorporated into your investment strategy, and which UITs may be right for you.

There is no assurance that a unit investment trust will achieve its investment objective. An investment in this unit trust is subject to market risk, which is the possibility that the market values of securities owned by the trust will decline and that the value of trust units may therefore be less than what you paid for them. This trust is unmanaged and its portfolio is not intended to change during the trust’s life except in limited circumstances. Accordingly, you can lose money investing in this trust.

An investment in a trust should be made with an understanding of the risks associated therewith, such as the inability of the issuer or an insurer to pay the principal of or interest on a security when due, volatile interest rates, early call provisions and changes to the tax status of the securities.

The actual trust portfolio may be concentrated in certain market geographic regions sectors/industries. To the extent the actual trust does so, it is more susceptible to economic, political, regulatory and other occurrences influencing those regions sectors/industries.

Unit Investment Trusts are offered and sold by prospectus only. You should carefully consider the investment objectives, risks, expenses and charges of the investment company before you invest. We can provide you with a prospectus that will contain the information noted above, and other important information that you should read carefully before you invest or send money.


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