Unit Investment Trusts (UITs)

Investment companies that assemble a fixed, unmanaged portfolio for a set life and sell redeemable units; there is no board of directors, no investment adviser, and no ongoing trading of the portfolio.

Sponsors deposit a portfolio — often bonds maturing near the trust’s end date — and sell units representing undivided interests in it. Units are redeemed by the sponsor/trustee rather than traded, and the trust self-liquidates at termination.

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