Q-GARP Portfolio an Exclusive UBS Portfolio

Total Page:16

File Type:pdf, Size:1020Kb

Q-GARP Portfolio an Exclusive UBS Portfolio Series 2016-2Q, ADT 1673 Q-GARP Portfolio An exclusive UBS Portfolio Ticketing Information Investment Objective & Principal Investment Strategy CUSIP (Cash) 00774H106 CUSIP (Reinvest) 00774H114 The Q-GARP Portfolio is a unit investment trust (UIT) that seeks to provide above- CUSIP (Fee-Based Cash) 00774H122 average total return through dividend income and capital appreciation. The portfolio CUSIP (Fee-Based Reinvest) 00774H130 invests in stocks on UBS Financial Services Inc.’s (“UBS”) Q-GARP (Quality Growth at a Ticker Symbol GARPDX Reasonable Price) stock list as of June 10, 2016. The portfolio is unmanaged and will not make changes to trace the stock list over time. As a result, performance of the portfolio Essential Information+ may vary from the stock list’s performance. Unit price at inception (per unit) $10.0000 Initial redemption price (per unit) $9.7550 UBS is partnering with AAM, a solutions partner for advisors and broker/dealers offering Initial date of deposit 6/21/2016 Portfolio ending date 9/20/2017 an array of financial tools, leading technologies and industry expertise. AAM has its own Distribution frequency Semi-Annual brand of unit investment trusts and differentiates itself through a focused selection of UIT Est. net annual distribution per unit* $0.1063 offerings, with an emphasis on solid investment disciplines and specific asset classes. +As of 6/20/2016 and may vary thereafter. *The estimate is generally based on the estimate of dividends that the trust will receive by annualizing the most recent dividend declared. Q-GARP Stock Selection The per unit estimate will vary with changes in fees and expenses, actual dividends received and with the sales of To be added to UBS’s Q-GARP stock list, stocks must have: securities. There is no guarantee that the issuers of the An Outperform recommendation by UBS CIO Wealth Management Research (“CIO securities included in the trust will declare distributions in the future or that, if declared, will remain at current levels or WMR”), or increase over time. Where CIO WMR does not cover a stock, a Buy recommendation by UBS Sales Charge (Based on $10 unit price)++ Investment Research. UBS Investment Research is part of UBS Investment Bank. As a % of $1,000 Amount per Standard Accounts invested 100 units Next, to determine whether a stock is included in the list, UBS aggregates the Initial sales fee 1.00% $10.00 standardized scores for eligible stocks, rewarding stocks with the following Deferred sales fee 1.45% $14.50 characteristics: Creation & development fee 0.50% $5.00 High-Quality: UBS uses two variables for this measure. Margin stability, which is Maximum sales fee 2.95% $29.50 defined as the standard deviation of a company’s operating margin over the past 10 Fee-Based Accounts As a % of fee-based Amount per public offering price 100 units years. UBS also includes a profitability metric, as measured by the expected return on equity for a stock over the next 12 months. Maximum sales fee 0.51% $5.00 ++The deferred sales fee is fixed at $0.145 per unit and is paid Growth: Institutional Brokers’ Estimate System’s (“IBES”) three-five year and in three monthly installments beginning October 20, 2016. The consensus 2015-2017 earnings growth forecasts. creation & development fee is fixed at $0.05 per unit and is paid at the end of the initial offering period (anticipated to be Reasonable Price: Price-to-earnings ratio (“PE”) relative to peers and relative three months). The initial and deferred sales fees may not to history. apply to fee-based accounts. See the prospectus for more details about fee-based account eligibility requirements. Stocks that scored poorly on any one metric (typically over one standard deviation below Sales Charge Volume Discounts+++ the mean) are eliminated. To remain eligible for continued inclusion on UBS’s Q-GARP stock list, stocks must maintain an Outperform or Market perform recommendation by If you purchase: Your fee will be: Less than $50,000 2.95% CIO WMR or, where CIO WMR does not cover a stock, a Buy or Neutral recommendation $50,000 - $99,999 2.70% by UBS Investment Research. $100,000 - $249,999 2.45% $250,000 - $499,999 2.20% $500,000 - $999,999 1.95% $1,000,000 or more 1.40% +++Sales charges are as a percentage of the public offering price per unit. These discounts are only available during the initial offering period. The breakpoints will be adjusted to take into consideration purchase orders stated in dollars which cannot be completely fulfilled due to the requirements that only whole units Page 1 of 3 be issued. See the prospectus for details about sales charge discounts including all available discounts. Advisors Asset Management, Inc. (AAM) is a SEC registered investment advisor and member FINRA/SIPC. Q-GARP Portfolio Series 2016-2Q, ADT 1673 An exclusive UBS portfolio Portfolio Holdings (as of date of deposit) Country of Organization* % of Portfolio Country of Issuer Name Ticker Sector Organization United States 87.85% Ireland 6.08% Comcast Corporation CMCSA Consumer Discretionary US Bermuda 3.04% Hilton Worldwide Holdings, Inc. HLT Consumer Discretionary US Netherlands 3.03% Lowe's Companies, Inc. LOW Consumer Discretionary US Source: Bloomberg O'Reilly Automotive, Inc. ORLY Consumer Discretionary US Starbucks Corporation SBUX Consumer Discretionary US Sector Diversification* The Home Depot, Inc. HD Consumer Discretionary US % of Portfolio The TJX Companies, Inc. TJX Consumer Discretionary US Consumer Discretionary 27.29% The Walt Disney Company DIS Consumer Discretionary US Health Care 18.19% Time Warner, Inc. TWX Consumer Discretionary US Colgate-Palmolive Company CL Consumer Staples US Industrials 18.15% CVS Health Corporation CVS Consumer Staples US Information Technology 18.08% Ameriprise Financial, Inc. AMP Financials US Financials 9.16% Intercontinental Exchange, Inc. ICE Financials US Consumer Staples 6.07% Becton Dickinson and Company BDX Health Care US Materials 3.06% McKesson Corporation MCK Health Care US Source: Global Industrial Classification Standard PAREXEL International Corporation PRXL Health Care US Thermo Fisher Scientific, Inc. TMO Health Care US Danaher Corporation DHR Industrials US Holdings Style Summary* % of Portfolio Honeywell International, Inc. HON Industrials US Rockwell Automation, Inc. ROK Industrials US Large-Cap Blend 15.15% Rockwell Collins, Inc. COL Industrials US Large-Cap Growth 60.54% The Boeing Company BA Industrials US Large-Cap Value 6.07% United Technologies Corporation UTX Industrials US Mid-Cap Blend 9.12% Adobe Systems, Inc. ADBE Information Technology US Mid-Cap Growth 3.04% Alphabet, Inc. GOOGL Information Technology US Mid-Cap Value 3.05% Cognizant Technology Solutions Corporation CTSH Information Technology US Small-Cap Growth 3.03% Facebook, Inc. FB Information Technology US Source: Morningstar Red Hat, Inc. RHT Information Technology US *As of 6/20/2016 and may vary thereafter. Ecolab, Inc. ECL Materials US Breakdowns are based on the sources shown and Country of may differ from any category definitions used in selecting the trust portfolio. Issuer Name Ticker Sector Organization Invesco Ltd IVZ Financials BM Medtronic PLC MDT Health Care IE Mylan MYL Health Care NL Accenture PLC ACN Information Technology IE Page 2 of 3 Q-GARP Portfolio Series 2016-2Q, ADT 1673 An exclusive UBS portfolio Unit Investment Trusts (UITs) are sold only by prospectus. You should consider the trust’s investment objectives, risks, charges and expenses carefully before investing. Contact your financial professional or visit Advisors Asset Management online at www.aamlive.com/uit to obtain a prospectus, which contains this and other information about the trust. Read it carefully before you invest or send any money. Securities offered through your financial professional. Risks and Considerations: Unit values will fluctuate with the portfolio of underlying securities and may be worth more or less than the original purchase price at the time of redemption. There is no guarantee that the objective of the portfolio will be achieved. Additionally, the trust may terminate earlier than the specific termination date as stated in the prospectus. The strategy is considered a long-term one therefore, investors should consider their ability to pursue investing in successive trusts. Consult your tax advisor for possible tax consequences associated with this investment. Units may be well suited for an IRA or other qualified plan. An investment in this unmanaged unit investment trust should be made with an understanding of the following risks: Common Stock: An investment in common stocks should be made with an understanding of the various risks of owning common stock, such as an economic recession and the possible deterioration of either the financial condition of the issuers of the equity securities, the general condition of the stock market, or an impact to the market price. Consumer Products and Services Companies: These companies manufacture or sell various consumer products and/or services. General risks of these companies include the general state of the economy, intense competition and consumer spending trends. Negative developments in this sector will affect the value of your investment more than would be the case in a more diversified investment. Dividend Payment Risk: An issuer of a security may be unwilling or unable to pay income on a security. Common stocks do not assure dividend payments and are paid only when declared by an issuer’s board of directors. The amount of any dividend may vary over time. Foreign Securities: Securities of foreign issuers present risks beyond those of U.S. issuers which may include market and political factors related to the issuer’s foreign market, international trade conditions, less regulation, smaller or less liquid markets, increased volatility, differing accounting practices and changes in the value of foreign securities. Long-Term Strategy: Although this UIT terminates in approximately 15 months, the strategy is long term.
Recommended publications
  • Blackrock Greater Europe Investment Trust Plc July 2021
    BlackRock Greater Europe Investment Trust plc July 2021 The information contained in this release was correct as at 31 July 2021. Key Risk Factors Information on the Company’s up to date net asset values can be found on Capital at risk. The value of investments and the London Stock Exchange website at: https://www.londonstockexchange.com/exchange/news/market-news/market- the income from them can fall as well as rise newshome.html and are not guaranteed. Investors may not get back the amount originally invested. Overseas investments will be affected by Company objective currency exchange rate fluctuations. To achieve capital growth, primarily through investment in a focused portfolio The Company’s investments may be subject constructed from a combination of the securities of large, mid and small to liquidity constraints, which means that capitalisation European companies, together with some investment in the shares may trade less frequently and in small developing markets of Europe. volumes, for instance smaller companies. As a Fund information (as at 31/07/2021) result, changes in the value of investments may be more unpredictable. In certain cases, Net asset value (capital only): 649.74p it may not be possible to sell the security at Net asset value (including income): 651.74p the last market price quoted or at a value considered to be fairest. Net asset value (capital only)1: 649.74p The Company invests in economies and Net asset value (including income)1: 651.74p markets which may be less developed. Share price: 664.00p Compared to more established economies, the value of investments may be subject to Premium to NAV (including income): 1.9% greater volatility due to increased uncertainty Premium to NAV (including income)1: 1.9% as to how these markets operate.
    [Show full text]
  • Ab UBS Fiduciary Trust Company Collective Investment Trust For
    ab UBS Fiduciary Trust Company Collective Investment Trust for Employee Benefit Plans Portfolio Disclosure Document Relative Value Portfolio Objective b. Obligations of U.S. banks or savings and loan To generate a total return in excess of the associations (including certificates of deposit Benchmark over a full market cycle. and bankers’ acceptances) which are fully insured by the Federal Deposit Insurance Benchmark Corporation; and S&P 500® Index c. Commercial paper or variable amount master Method notes issued by companies which, at the time To invest in equity securities that appear to have of purchase, have an issue of outstanding solid future growth potential across the broad debt securities rated as “investment grade” market capitalization ($1 billion and greater) by Standard & Poor’s Ratings Group (“S&P”) while diversifying the Portfolio across economic (BBB- or better) or Moody’s Investor Services sectors and industries. Typically, the Portfolio will Inc. (“Moody’s”) (Baa3 or better) or invest in companies with better earnings growth, commercial paper rated A-1 by S&P or balance sheet and shareholder value P-1 by Moody’s, with split-rated securities characteristics than the benchmark. considered to have the lower credit rating; Permissible Investments 4. Shares of a registered investment company that The Portfolio may invest in: has an investment objective consistent with the overall investment objectives of the Portfolio. In 1. Common stock, American Depositary the event the Trustee purchases shares of a Receipts (“ADRs”), Real Estate Investment registered investment company sponsored by the Trusts (“REITs”) and other securities that are Adviser or an affiliate of the Adviser, the Trustee traded on a recognized U.S.
    [Show full text]
  • Schroder Singapore Trust Prospectus Dated: 17 June 2021 Valid Till: 16 June 2022
    Schroder Singapore Trust Prospectus Dated: 17 June 2021 Valid till: 16 June 2022 SCHRODER SINGAPORE TRUST PROSPECTUS SCHRODER SINGAPORE TRUST Directory MANAGERS Schroder Investment Management (Singapore) Ltd 138 Market Street #23-01 CapitaGreen, Singapore 048946 Company Registration No.: 199201080H TRUSTEE HSBC Institutional Trust Services (Singapore) Limited 10 Marina Boulevard Marina Bay Financial Centre Tower 2, #48-01 Singapore 018983 Company Registration No.: 194900022R BOARD OF DIRECTORS OF THE MANAGERS Susan Soh Shin Yann Wong Yoke Lin Martina Chong Siok Chian Grace Diao Wei Chien Roy Lily Choh Chaw Lee Hsieh, Cheng-Huang Hackett Marcus AUDITORS PricewaterhouseCoopers LLP 7 Straits View, Marina One East Tower, Level 12 Singapore 018936 SOLICITORS TO THE MANAGERS Clifford Chance Pte. Ltd. 12 Marina Boulevard 25th Floor, Tower 3 Marina Bay Financial Centre Singapore 018982 SOLICITORS TO THE TRUSTEE Shook Lin & Bok LLP 1 Robinson Road #18-00 AIA Tower Singapore 048542 i SCHRODER SINGAPORE TRUST Important Information Schroder Investment Management (Singapore) Ltd (the "Managers"), the managers of the Schroder Singapore Trust (the "Trust"), accepts full responsibility for the accuracy of the information contained in this Prospectus and confirms, having made all reasonable enquiries, that to the best of its knowledge and belief, there are no other facts the omission of which would make any statement herein misleading in any material respect. You, as the investor, should refer to the relevant provisions of the trust deed relating to the Trust (as may be amended, supplemented or modified from time to time) (the "Deed") and obtain professional advice if there is any doubt or ambiguity relating thereto.
    [Show full text]
  • 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]
  • M&G High Income Investment Trust P.L.C
    THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt about the action to be taken, you are recommended to immediately consult your stockbroker, bank manager, solicitor, accountant or other financial adviser who is authorised under the Financial Services and Markets Act 2000. If you have sold or otherwise transferred all of your Zero Dividend Shares, Income Shares, Capital Shares, Income & Growth Units or Package Units in M&G High Income Investment Trust P.L.C. (the “Company”), you should pass this document, together with the accompanying documents, but not any accompanying personalised Forms of Proxy or Forms of Election, as soon as possible to the person through whom the sale or transfer was effected for transmission to the purchaser or transferee. However, such documents should not be forwarded in or into the United States, Canada, Australia or Japan or into any other jurisdictions if to do so would constitute a violation of the relevant laws and regulations in such other jurisdictions. Shareholders and Unitholders who are resident in, or citizens of, territories outside the United Kingdom, the Channel Islands and the Isle of Man should read the section headed “Overseas Holders” in Part II of this document. Winterflood Securities Limited, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting for the Company and no one else in relation to the contents of this document and will not be responsible to anyone other than the Company for providing the protections offered to customers of Winterflood Securities Limited or for providing advice in relation to the contents of this document or any transaction referred to herein or any other transaction or matter in relation to the arrangements set out herein.
    [Show full text]
  • Blackrock Income and Growth Investment Trust Plc August 2021
    BlackRock Income and Growth Investment Trust plc August 2021 The information contained in this release was correct as at 31 August 2021. Key risk factors Information on the Company’s up to date net asset values can be found on the Capital at risk The value of London Stock Exchange website at: investments and the income from https://www.londonstockexchange.com/exchange/news/market- them can fall as well as rise and are news/market-news-home.html not guaranteed. Investors may not get back the amount originally Company objective invested. To provide growth in capital and income over the long term through The companies investments may be investment in a diversified portfolio of principally UK listed equities. subject to liquidity constraints, which means that shares may trade Fund information (as at 31/08/21) less frequently and in small volumes, for instance smaller companies. As a Net asset value - capital only: 201.64p result, changes in the value of investments may be more Net asset value - cum income*: 205.04p unpredictable. In certain cases, it may not be possible to sell the 189.00p security at the last market price Share price: quoted or at a value considered to be fairest. Total assets (including income): £48.0m The Company may from time to time Discount to NAV (cum income): 7.8% utilise gearing. A fuller definition of gearing is given in the glossary. Gearing: 5.9% The latest performance data can be found on the BlackRock Investment Net yield**: 3.8% Management (UK) Limited website at blackrock.com/uk/brig.
    [Show full text]
  • Schroder European Real Estate Investment Trust
    Key Information Document Purpose This document provides you with key information about this investment product. It is not marketing material. The information is required by law to help you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products. Schroder European Real Estate Investment Trust plc Ordinary shares (ISIN: GB00BY7R8K77) This product is listed on the London Stock Exchange, and the Johannesburg Stock exchange, and is governed by its Board of Directors. The Board has appointed Schroder Real Estate Investment Management Limited as its investment manager and accounting agent and to prepare this Key Information Document. Schroder Real Estate Investment Management Limited is a member of the Schroders Group and is authorised and regulated by the Financial Conduct Authority (FCA). For more information on this product please refer to https://www.schroders.com/en/uk/private-investor/fund-centre/funds-in-focus/investment-trusts/schroders-investment-trusts/schroder- european-real-estate-investment-trust or call one of our Investor Services team on 0800 718 777. This document was published on 9th March 2021. What is this product? Type This is a closed-ended investment company incorporated in The Company is valued with reference to the net asset value of the England and Wales that qualifies as an investment trust. underlying assets. Shares in the Company are traded on the London Stock Exchange and Johannesburg Stock Exchange and Investment objective are bought and sold in the market. Typically, at any given time, on The investment objective of the Company is to provide any given day, the price you pay for a share will be higher than the shareholders with a regular and attractive level of income return price at which you could sell it.
    [Show full text]
  • The Cost of Equity Capital for Reits: an Examination of Three Asset-Pricing Models
    MIT Center for Real Estate September, 2000 The Cost of Equity Capital for REITs: An Examination of Three Asset-Pricing Models David N. Connors Matthew L. Jackman Thesis, 2000 © Massachusetts Institute of Technology, 2000. This paper, in whole or in part, may not be cited, reproduced, or used in any other way without the written permission of the authors. Comments are welcome and should be directed to the attention of the authors. MIT Center for Real Estate, 77 Massachusetts Avenue, Building W31-310, Cambridge, MA, 02139-4307 (617-253-4373). THE COST OF EQUITY CAPITAL FOR REITS: AN EXAMINATION OF THREE ASSET-PRICING MODELS by David Neil Connors B.S. Finance, 1991 Bentley College and Matthew Laurence Jackman B.S.B.A. Finance, 1996 University of North Carolinaat Charlotte Submitted to the Department of Urban Studies and Planning in partial fulfillment of the requirements for the degree of MASTER OF SCIENCE IN REAL ESTATE DEVELOPMENT at the MASSACHUSETTS INSTITUTE OF TECHNOLOGY September 2000 © 2000 David N. Connors & Matthew L. Jackman. All Rights Reserved. The authors hereby grant to MIT permission to reproduce and to distribute publicly paper and electronic (\aopies of this thesis in whole or in part. Signature of Author: - T L- . v Department of Urban Studies and Planning August 1, 2000 Signature of Author: IN Department of Urban Studies and Planning August 1, 2000 Certified by: Blake Eagle Chairman, MIT Center for Real Estate Thesis Supervisor Certified by: / Jonathan Lewellen Professor of Finance, Sloan School of Management Thesis Supervisor
    [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]