DOCSLIB.ORG

Invesco Unit Trusts

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Invesco Unit Trusts Invesco Unit Trusts Risk considerations There is no assurance a trust will achieve its investment of lower security prices due to rising interest rates. A history of stability in an objective. An investment in a unit investment trust is Due to the variation in state and local taxes, their impact subject to market risk, which is the possibility that the on returns was not explicitly analyzed. Corporate bonds unstable world market values of securities owned by a trust will decline and equities are generally subject to both Federal and and that the value of trust units may therefore be less state income taxes. Municipals are assumed to be exempt Our Intentional Investing approach than what you paid for them. Each trust is unmanaged from Federal but subject to state income taxes, although Intentional Investing is the philosophy that guides the way we and its portfolio is not intended to change during the in many states, in-state municipals are not subject to The last four decades have brought good times and bad manage money, manage risk, develop products and interact trust’s life except in limited circumstances. Accordingly, state income taxes. times, booms and busts — and through it all, investors in with our clients. you can lose money investing in a trust. “Investment Grade” is a rating that indicates that a our fixed income unit trusts have received regular income An investment in these trusts should be made with municipal or corporate bond has a relatively low risk of • Managing money. Our team of experienced analysts and 1 an understanding of the risks associated therewith, default. Bond rating firms, such as Standard & Poor’s, distributions that helped them meet their needs and traders assess a myriad of securities and select the most such as the inability of the issuer or an insurer to pay use different designations consisting of upper- and objectives. appropriate investments for each unit trust. We adhere to the principal of or interest on a bond when due, volatile lower-case letters “A” and “B” to identify a bond’s credit disciplined, transparent processes and pursue consistent, interest rates, early call provisions and changes to the quality rating. “AAA” and “AA” (high credit quality) and At Invesco Unit Trusts, we’re commemorating our repeatable results that are aligned with client expectations. 5,000th tax status of the bonds. In particular, Qualified School “A” and “BBB” (medium credit quality) are considered fixed income deposit by taking a look back at our 37-year • Managing risk. Our analysts conduct comprehensive, Construction Bonds may be redeemed approximately investment grade. Credit ratings for bonds below these history and the events we’ve helped investors navigate. fundamental issuer and security analysis and assign an internal three years after issuance to the extent an issuer has designations (“BB”, “B”, “CCC”, etc.) are considered SM Invesco credit rating for each bond independent of the ratings And we highlight the Intentional Investing philosophy unexpended bond sale proceeds. low credit quality, and are commonly referred to as that forms the foundation of our future. agencies. We have an active surveillance process that reviews As interest rates rise, bond prices fall. Investments in “junk bonds”. bonds’ credit quality for the life of our trusts. a trust may be subject to interest rate risk. If interest rates “Call Protection” is a protective provision of a callable • Developing products. We offer solutions for a wide range of rise, the value of the bonds in a trust may decline and if security prohibiting the issuer from calling back the investor needs. We have taxable and tax-exempt products, interest rates decline the value of the bonds may increase. security for a period early in its life. “Non-callable” is and we can provide exposure to a wide range of credit ratings, Also, the longer the period to maturity, the greater the a security that cannot be called by the issuer prior to durations, geographic locations, subcategories and sectors. sensitivity to interest rate changes tends to be. maturity. ”Make-whole” (provision) is a type of call Should the issuer of a Build America Bond or Qualified provision on a bond allowing the borrower to pay off • Interacting with clients. Whatever level of information you School Construction Bond fail to continue to meet remaining debt early. The borrower has to make a lump need, Invesco provides it. We offer a wealth of product the applicable requirements imposed on the bonds as sum payment derived from a formula based on the net data, educational materials about unit trusts, sector-specific provided by the American Recovery & Reinvestment Act present value (NPV) of future coupon payments that will commentaries and broad market views. of 2009, it is possible that such issuer may not receive not be paid because of the call. federal cash subsidy payments, impairing the issuer’s Invesco and its representatives do not provide tax ability to make scheduled interest payments. advice. Individuals should consult their personal tax A trust may concentrate in bonds of a particular type advisors before making any tax-related investment of issuer. This makes a trust less diversified and subject decisions. Invesco does not provide investment advice. to greater risk than a more diversified portfolio. Invesco’s history of offering unit investment trusts Discount fixed income unit trusts may realize gains was acquired through its predecessor firm, Van Kampen when a municipal bond is sold, is called or matures and Funds Inc., in June 2010 by Invesco Ltd. Invesco unit unit holders may incur a tax liability from time to time. investment trusts are distributed by the sponsor, The various types of investments presented involve Van Kampen Funds Inc., and broker dealers including different types of risk. Municipals and corporates each Invesco Distributors, Inc. Both firms are wholly owned, involve the individual credit risk of the municipal or indirect subsidiaries of Invesco Ltd. corporate borrower and the general interest rate risk Before investing, investors should carefully read the prospectus and consider the investment objectives, risks, charges and expenses. For this and more complete information about the trust(s), investors should ask their advisor(s) for a prospectus or download one at invesco.com/unittrust. Note: Not all products, materials or services available at all firms. Advisors, please contact your home office. All data provided by Invesco unless otherwise noted. 1 Of course past performance is not indicative of future results. Regular income payments have helped investors with stability in their overall investment portfolios. invesco.com/us U-HISTORY-BRO-1 06/12 Invesco Distributors, Inc. 8892 Invesco Unit Trusts — e xperience that matters We’ve witnessed many difficult economic events on The UIT opportunity our way to 5,000 fixed income deposits. And, as A fixed income unit trust is an investment that combines illustrated by our low fixed income trust default rate1, certain benefits of owning individual bonds with the we’ve successfully guided investors through much of diversification and professional selection of an open-end the volatility. mutual fund. In the mid-70s, we pioneered the first insured Fixed income unit trusts can be an attractive alternative tax-exempt municipal trusts. Although initial demand to both mutual funds and individual bonds and may offer was low, investors later flocked to insured municipal several potential advantages: investments after New York City nearly defaulted • A defined and transparent basket of diversified bonds in 1975. • A consistent monthly income payment We broke all contemporary industry records by • A defined par value based on the maturity value or the introducing a $125 million Insured Municipal Income bonds in the trust Trust (IMIT) in 1982, soon followed by an even larger • A professionally selected and professionally monitored $128.5 IMIT. portfolio During tough economic times, our fixed income unit Fixed income investments through the unit trust package trusts weathered the 1987 savings and loan crisis, is our heritage. We are proud of our franchise, and the “dot.com” bubble in the early 2000s and the 2008 excited about the future. credit crunch, among other events. Through it all, we’ve remained an industry leader: In 2011, our Build America Bonds Trusts topped $4.1 billion in initial deposits across 111 trusts. All told, we’ve distributed more than $18 billion in interest payments since 1976 through May 2012. Invest With a Proven Leader in Unit Investment Trusts Experience and prudence has kept 99.92% of our municipal bonds2 and 99.67% of our corporate bonds3 default-free. Invesco Unit Trust S&P Universe Bond Type Default Rate (%) Default Rate (%) Investment Grade Municipal Bonds 0.082 0.214 Investment Grade Corporate Bonds 0.333 3.605 For additional information, contact your financial advisor or visit invesco.com/unittrust. Past performance is no guarantee of future results. Diversification does not ensure a profit or eliminate the risk of loss. 1 Internal Invesco Database; Municipals 01/01/76–12/31/11 (entire history) default rate of 0.08%. Corporates 01/01/01–12/31/11 default rate of 0.33% 2 Internal Invesco Database; Municipals 01/01/76–12/31/11 (entire history) 3 Internal Invesco Database; Corporates 01/01/01–12/31/11 4 S&P Investment Grade Municipal default rate; 25 year cumulative average default rate, which is the weighted average of every 25 year period between 1986–2011; from “U.S. Public Finance Defaults and Rating Transition Data: 2011 Update” published 3/22/2012 5 S&P Corporate Default Rate, 2001–2011 Cumulative Rate, from “Default, Transition, and Recovery: 2011 Annual Global Corporate Default Study and Rating Transitions” published 3/21/2012 Our Intentional Investing approach Intentional Investing is the philosophy that guides the way we manage money, manage risk, develop products and interact with our clients.
Load more

Recommended publications
  • Charles Schwab Trust Company Personal Trust Services
    Charles Schwab Trust Company Personal Trust Services Dear Investor, Thank you for your interest in Schwab Personal Trust Services provided by Charles Schwab Trust Company (CSTC). Administering a trust and investing assets successfully can be a complex and time-consuming process, and choosing the right trustee is one of the most difficult decisions in the estate-planning process. CSTC can serve as sole trustee, co-trustee, or successor trustee, depending on your individual needs and circumstances. Our experienced and knowledgeable team of trust and investment professionals takes its fiduciary duty seriously when thoughtfully carrying out your legacy. The benefits of working with CSTC include: • Objective administration and management of your trust assets according to what you have outlined in your estate plan • Superior client service consistent with Charles Schwab’s commitment to putting the client first • Peace of mind in working with a transparent, responsive, and innovative trust company • Highly competitive, easy-to-understand fees The enclosed documentation provides important information for you to review, including checklists, requirements for CSTC to accept its appointment as trustee, and standard trust provisions that we look for in every trust. If you have questions or would like to discuss your trust situation, call us at 1-877-862-4304, Monday through Friday, from 8 a.m. to 5 p.m. Pacific time. Sincerely, Brian Cook CFP®, CTFA President Charles Schwab Trust Company Charles Schwab Trust Company Personal Trust Planning Steps Thank you for your interest in naming Charles Schwab Trust Company as your trustee. If you are ready to move forward, please review the following requirements and then continue with the checklist that best suits your current situation.
    [Show full text]
  • 2020 Annual Report to Members (Pdf)
    WASHINGTON, DC LONDON BRUSSELS HONG KONG WWW.ICI.ORG ICI REPRESENTS... More than 31,000 funds Number of investment companies by type* , , US mutual funds US exchange-traded funds US closed-end funds , US unit investment trusts , Non-US funds With $34.5 trillion in assets Investment company assets, billions of dollars* $, US exchange-traded funds $ $ US closed-end funds US unit investment trusts $, $, US mutual funds Non-US funds Serving more than 100 million shareholders US ownership of funds offered by investment companies* . percent million million of US households own funds US households own funds individuals own funds * Data for US mutual funds, closed-end funds, exchange-traded funds, unit investment trusts, and non-US funds are as of September 30, 2020. Data for ownership of funds are as of mid-2020. Contents 02 Leadership Messages 24 Financial Markets 08 COVID-19 26 Independent Directors Council 14 Fund Regulation 28 ICI PAC 18 Operations 30 ICI Education Foundation 20 Retirement 32 Appendices 22 Exchange–Traded Funds 46 Leading the Way on Policy Issues LEADERSHIP MESSAGES Letter from the Chairman 2020 will go down in history as a year that none of us can ever improving our understanding of the demographics of our forget—no matter how much we would like to. It was a year of industry—because we can only manage if we measure—and turmoil, fear, and reckoning. Yet for the regulated fund industry, expanding the pipeline of diverse talent entering our business this has also proven to be a year of resilience, transition, and at all levels of seniority.
    [Show full text]
  • The Unit Investment Trust: Maintaining Integrity Through Time
    The Unit Investment Trust: Maintaining Integrity Through Time OLDEN LANE WHITEPAPER NO. 1 JANUARY 2016 “ The task is not so much to see what no one has yet seen, but to think what nobody yet has thought about that which everybody sees.” - Arthur Schopenhauer Today, the asset management business is adapting to significant shifts in investor behavior.1 Among the most observable trends are an increasing sensitivity to fees, a growing appetite for alternative streams of return and a pronounced desire for regulated investment vehicles.2 At the same time, traditional asset managers are confronting the dual threat of disintermediation and margin pressure as at no time in recent memory.3 Against this backdrop, a lesser known corner of the investment products universe is gaining increased attention from investors and asset managers alike. While unit investment trusts (each, a “UIT”, and together, “UITs”) have evolved already “far beyond their humble origins as fixed packages of municipal bonds” 4 and have seen increasing inflows in recent years, the possibilities for this fund wrapper seem far from exhausted. 5 In fact, many believe that the UIT can play an important part in the portfolios of today’s retail and institutional investors alike.6 Unit investment trusts enjoy a colorful and dynamic history – from their earliest days as “fixed trusts” Through each of to a successful run as a tax favored vehicle for municipal bond portfolios. More recently the UIT has these incarnations, played a prominent role in introducing customers to the basic concepts of smart beta investing, the UIT has retained served as the underlying structure for the first Exchange Traded Funds and thrived as an equity portfolio wrapper for the retail distribution channel.
    [Show full text]
  • Introduction and Overview of 40 Act Liquid Alternative Funds
    Introduction and Overview of 40 Act Liquid Alternative Funds July 2013 Citi Prime Finance Introduction and Overview of 40 Act Liquid Alternative Funds I. Introduction 5 II. Overview of Alternative Open-End Mutual Funds 6 Single-Manager Mutual Funds 6 Multi-Alternative Mutual Funds 8 Managed Futures Mutual Funds 9 III. Overview of Alternative Closed-End Funds 11 Alternative Exchange-Traded Funds 11 Continuously Offered Interval or Tender Offer Funds 12 Business Development Companies 13 Unit Investment Trusts 14 IV. Requirements for 40 Act Liquid Alternative Funds 15 Registration and Regulatory Filings 15 Key Service Providers 16 V. Marketing and Distributing 40 Act Liquid Alternative Funds 17 Mutual Fund Share Classes 17 Distribution Channels 19 Marketing Strategy 20 Conclusion 22 Introduction and Overview of 40 Act Liquid Alternative Funds | 3 Section I: Introduction and Overview of 40 Act Liquid Alternative Funds This document is an introduction to ’40 Act funds for hedge fund managers exploring the possibilities available within the publically offered funds market in the United States. The document is not a comprehensive manual for the public funds market; instead, it is a primer for the purpose of introducing the different fund products and some of their high-level requirements. This document does not seek to provide any legal advice. We do not intend to provide any opinion in this document that could be considered legal advice by our team. We would advise all firms looking at these products to engage with a qualified law firm or outside general counsel to review the detailed implications of moving into the public markets and engaging with United States regulators of those markets.
    [Show full text]
  • Unit Investment Trusts — Features, Costs and Compensation
    OCTOBER 2015 Unit Investment Trusts — Features, Costs and Compensation This document will help you understand unit investment trusts (“UITs”), their features and costs, and how Morgan Stanley and your Financial Advisor are compensated when you buy a UIT. Like mutual funds, UITs are securities that are offered through a disclosure document known as a prospectus. You should read the prospectus carefully before investing. You should also discuss your investment goals and objectives with your Financial Advisor. For additional information, you can visit the following websites: Securities and Exchange Commission (www.SEC.gov), Financial Industry Regulatory Authority (www.FINRA.org), the Securities Industry and Financial Markets Association (www.SIFMA.org) and the Investment Company Institute (www.ICI.org). What Is a UIT? What Are the Costs Associated With Investing in UITs A UIT is a SEC-registered investment company that invests in a All UITs have fees and expenses. These costs, like all investing portfolio of bonds and / or equity securities according to a specific costs, are important to understand because they affect the return investment objective or strategy. Generally, a UIT’s portfolio is not on your investment. UIT fees and expenses can be divided into actively traded and follows a “buy and hold” strategy, investing those fees that relate to distribution of the UIT and those that in a static portfolio of securities for a specified period of time. At relate to operation of the UIT. the end of the specified period, the UIT terminates, all remaining portfolio securities are sold and the redemption proceeds are paid SALES CHARGES — UITs assess sales charges on units you to the investors.
    [Show full text]
  • Regulation of Investment Advisers by the U.S. Securities and Exchange Commission
    . Regulation of Investment Advisers by the U.S. Securities and Exchange Commission Robert E. Plaze Partner June 2018 -i- TABLE OF CONTENTS Page I. Introduction ..............................................................................................................................1 II. Who is an Investment Adviser? ................................................................................................2 A. Definition of Investment Adviser .....................................................................................2 1. Compensation ............................................................................................................2 2. Engaged in the Business ............................................................................................3 3. Advising about Securities ..........................................................................................3 4. Advising Other Persons .............................................................................................5 B. Exclusions from Definition ...............................................................................................6 1. Banks and Bank Holding Companies ........................................................................6 2. Lawyers, Accountants, Engineers, and Teachers ......................................................7 3. Brokers and Dealers ..................................................................................................7 4. Publishers ................................................................................................................10
    [Show full text]
  • Exchange-Traded Funds
    Mutual Funds Today: Exchange-Traded Funds W. John McGuire The number of ETFs may be small but it is growing and shows every indication that the number will keep increasing. W. John McGuire IN 1940, investment companies were divided into leads the registered funds practice at Morgan Lew- is. He counsels clients on investment company and three classifications: management companies, unit investment adviser regulatory issues and related investment trusts, and face-amount certificate companies. issues affecting broker-dealers and transfer agents. Management companies (“funds”) were further divided John has assisted clients with the formation or ac- quisition of investment companies and investment into open-end funds (“mutual funds”) and closed-end advisers, in addition to providing them with ongo- funds. The significant difference between a closed-end ing representation. John routinely handles matters fund and a mutual fund, under the Investment Company involving the establishment, representation and counseling of exchange-traded investment com- Act of 1940, is that a mutual fund issues securities that are panies (ETFs), their advisers and listing markets. redeemable at the option of the shareholder on a daily John counsels clients on a wide variety of regula- basis. Thus, a shareholder of a mutual fund can sell shares tory and transactional matters, including develop- ment of new products and services; federal and back to the fund any day, based on the net asset value of the state registration and compliance issues; Securities fund. In contrast, a closed-end fund issues shares that are and Exchange Commission, FINRA, and state inves- not redeemable. Instead, shares of a closed-end company tigations and enforcement actions; mergers and acquisitions involving investment companies and are often listed and traded on a secondary market or are investment advisers; interpretive and “no-action” sometimes repurchased by a fund through a tender offer.
    [Show full text]
  • 0994 UIT Disclosure Doc V1
    ab Unit Investment Trust Disclosure Statement Before investing in a unit investment trust, it is important that you understand the sales charges and other fees and expenses that you will be charged on your investment, as well as the so-called “breakpoint” discounts to which you may be entitled depending on the amount of your purchase. Understanding these various costs and discounts will assist you in identifying investments for your particular needs and may help you reduce the cost of your investment. This disclosure document will give you general background information about these charges and discounts. However, sales charges, expenses, fees and breakpoint discounts vary from unit investment trust to unit investment trust. Therefore, you should discuss these issues with your Financial Advisor and review each unit investment trust’s prospectus, which is available from your Financial Advisor, to get the specific information regarding the sales charges, other fees and expenses, and breakpoint discounts associated with a particular unit investment trust. UBS Financial Services Inc. serves as the clearing firm for its affiliate UBS International Inc.; therefore UBS International Inc. clients with registered UITs are referred to the Unit Investment Trust Disclosure Statement provided by UBS Financial Services Inc. Unit Investment Trust Overview A unit investment trust, or UIT, is an investment company that offers redeemable shares, or units, of a generally fixed portfolio of securities in a one- time public offering, and terminates on a specified date. Unlike mutual funds, UITs are not actively managed and securities in the trust will not be sold to take advantage of various market conditions to improve the trust’s net asset value.
    [Show full text]
  • Investment Grade Corporate Trust, 5-8 Year, Series 37
    Deposit Date: Feb. 7, 20191 Invesco Unit Trusts Symbol: HIGT37 Investment Grade Corporate Trust, 5-8 Year, Series 37 WhyInvestment investment Grade grade Municipal intermediate trust, Intermediate bonds? Series (IGIN) Anticipated deposit information1 – Provides an allocation to taxable bonds (corporates) rated investment grade or Offer price on day of deposit Approx. $1,040 higher as of deposit date. Par value per unit2 $1,000 – Investment grade corporates with shorter maturities may help reduce interest Quality grade Investment grade rate risk for investors as well as add diversification benefits. or higher – Timely for investors looking for additional potential income in this low interest Est. duration 4.5–6 years rate environment while managing duration risk. Sales charge 2.50% Average maturity of bonds 5.5-6.9 years – May be appropriate for tax-deferred accounts such as IRAs and Keoghs. in portfolio Call protection of bonds in trust3 Approx. 6 years Estimated ratings breakdown (%)1 WhyInvestment fixed income Grade unit Municipal trusts? trust, Intermediate Series (IGIN) AA+ 0-20 Quality focus AA 0-20 Focus on investment grade bonds, specializing in quality taxable securities. AA- 0-20 A+ 0-20 Diversified and defined A 0-20 Actively selected and professionally monitored portfolio of diversified bonds. Investors know what they own in a defined investment. A- 0-20 BBB+ 5-30 Potential for consistent cash flow BBB 5-50 Historically consistent monthly income distributions for better client experience. BBB- 15-75 BB+ 0-10 Known dollar value2 BB 0-10 Consistent initial par value of $1,000 per unit, similar to individual bonds.
    [Show full text]
  • Summary of Your UBS Portfolio September 2018 ANQ7004886495 0918 X14 RP 0
    UBS Financial Services Inc. 681 Lake Street E. Suite 354 ab Wayzata MN 55391-1758 Summary of your UBS Portfolio September 2018 ANQ7004886495 0918 X14 RP 0 CITY OF WEST SAINT PAUL CUSTODY ACCOUNT ATTN: CHARLENE STARK 1616 HUMBOLDT AVE WEST SAINT PAUL MN 55118-3905 Member SIPC ANQ70007004886495 NQ7000390740 00001 0918 010558356 RP34592SH0 100100 Page 1 of 6 ab ANQ70007004886496 NQ7000390740 00001 0918 010558356 RP34592SH0 100100 Page 2 of 6 UBS Financial Services Inc. 681 Lake Street E. Suite 354 ab Wayzata MN 55391-1758 Summary of your UBS Portfolio September 2018 ANQ7004886497 0918 X14 RP 0 CITY OF WEST SAINT PAUL CUSTODY ACCOUNT Preferred Client Services ATTN: CHARLENE STARK 1616 HUMBOLDT AVE WEST SAINT PAUL MN 55118-3905 Your Financial Advisor: As a service to you, your portfolio value of $14,207,212.43 includes accrued interest. HARNETT/SORLEY Value of your portfolio Phone: 952-475-9440/800-627-2463 on August 31 ($) on September 28 ($) Questions about your statement? Your assets 14,712,520.44 14,207,212.43 Call Preferred Client Priority Services Your liabilities 0.00 0.00 at 877-352-3592 Value of your portfolio $14,712,520.44 $14,207,212.43 Visit our website: Accrued interest in value above $35,258.16 $41,039.38 www.ubs.com/financialservices Sources of your portfolio growth during 2018 Tracking the value of your portfolio Value of your portfolio $ Millions at year end 2017 $10,713,488.31 Net deposits and 23.6 23.7 withdrawals $3,538,662.54 21.1 19.5 Your investment return: 14.9 14.3 14.7 14.2 Dividend and 10.7 interest income $171,257.86
    [Show full text]
  • Guggenheim Defined Portfolios, Series 2135 Flaherty & Crumrine
    Guggenheim Defined Portfolios, Series 2135 Flaherty & Crumrine Preferred Portfolio, Series 53 GUGGENHEIM LOGO ® FLAHERTY & CRUMRINE LOGO PROSPECTUS PART A DATED MAY 26, 2021 A portfolio containing securities selected by Guggenheim Funds Distributors, LLC with the assistance of Flaherty & Crumrine Incorporated. The Securities and Exchange Commission has not approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense. INVESTMENT SUMMARY also invest in real estate investment trusts and master limited partnerships. Use this Investment Summary to help you decide whether an investment in this trust is In choosing the securities the primary right for you. More detailed information can be factors include, but are not limited to, credit found later in this prospectus. quality of the issuer and the liquidity and yield of the security as of the trust’s initial date of Overview deposit. Certain of the securities are rated below investment-grade and are considered to Guggenheim Defined Portfolios, Series 2135 be high-yield or “junk” securities. As a result is a unit investment trust that consists of the of this strategy, the trust is concentrated in the Flaherty & Crumrine Preferred Portfolio, financial sector. Series 53 (the “trust”). Guggenheim Funds Distributors, LLC (“Guggenheim Funds” or the Security Selection “sponsor”) serves as the sponsor of the trust. With assistance from Flaherty, the sponsor The trust is scheduled to terminate in has selected preferred securities and baby bonds approximately two years. believed to have the best potential for current income with the potential for capital appreciation.
    [Show full text]
  • Unit Investment Trusts Investment Primer
    Unit Investment Trusts Investment primer Investment summary The development and investment process A Unit Investment Trust (UIT) is an investment UIT development company with a specified duration that invests in a fixed Each UIT is designed to meet a stated investment goal, portfolio of securities selected according to a specific such as growth or income, though there is no assurance investment objective or strategy. UITs are registered under that the investment goal will be achieved. The UIT the Investment Company Act of 1940. sponsor selects the duration and the portfolio holdings for each UIT, based on the market environment and UITs are designed to be static portfolios, meaning the the trust‘s investment objective. Commonly, the trust’s underlying investment portfolio is not actively managed. investment objective is determined by using research- Because the portfolio holdings remain fixed, investors based themes, investment models or other means of generally know what they are invested in for the duration identifying investment opportunities relevant to market of the UIT. As a result, UITs do not have an investment conditions. Once the securities are selected, they are advisor, corporate officers or a board of directors that generally held until the UIT terminates and the proceeds render advice during the term of the UIT. are distributed to investors. During the initial offering period, units of the UIT are sold UIT purchase and investment period to investors (unit holders). Units represent an ownership During the initial offering period, investors may purchase in the UIT or its portfolio of securities. When investors shares of UITs at UBS through their Financial Advisor.
    [Show full text]