SmartTrust, one of the top providers of UITs
in the country, has grown significantly since the first SmartTrust[R] UIT
was launched in 2003 and now has 24 different UIT
strategies available for purchase in the primary market across the categories of taxable income, tax free income, equity-oriented/theme-based and taxable equity and income.
"Due to the long-term nature of UITs
, their structure, and upfront costs, short-term trading of UITs
may be improper and raises suitability concerns," Susan Schroeder, FINRA executive vice president and head of enforcement, said in a statement.
The Notice reminds broker-dealers that they should develop and implement procedures to ensure customers receive appropriate sales charge discounts for UITs
To summarize, UITs
are a tax-saving vehicle for investing in a particular segment of the market without having to commit too much capital.
In short, unit investment trusts (UIT
) are securities that are bundled together and then sold in pieces to investors, generally for $1,000 or less.
The Financial Industry Regulatory Authority (FINRA) has announced that it has fined Morgan Stanley Smith Barney LLC USD 3.25 million and required the firm to pay approximately USD 9.78 million in restitution to more than 3,000 affected customers for failing to supervise its representatives' short-term trades of unit investment trusts (UITs
), the company said.
Under the agreement, AAM is the product sponsor and distributor, while Cohen & Steers will be the portfolio consultant to these AAM UITs
With stocks enjoying a 10-year bull run, investors have increasingly turned to equity UITs
, where a group of stocks is selected for a buy-and-hold strategy.
, sponsored by Hennion & Walsh, offer diversified income and total return opportunities through innovative investment strategies.
are baskets of stocks that duplicate the major indices but trade like stocks on the AMEX.
(NYSE: EV), said it has launched its first unit investment trusts (UITs
), which are a suite of three thematic equity UITs
that utilize the research capabilities of its affiliated investment adviser, Eaton Vance Management.
To guard against these ups and downs, D'Aguilar suggests that you buy into a muni bond fund or UIT
, both of which cushion your investment with a diversified portfolio.