Unit investment trusts (UITs) have been gaining popularity among investors looking for a diversified and professionally managed portfolio. These trusts, which consist of a fixed portfolio of securities, offer investors the opportunity to invest in a variety of assets without having to actively manage their portfolio. In this article, we look at the top funds, stocks, and trusts where investors have been putting their money over the past month.
Cetera broker-dealer was recently hit with $1.1 million in fines and restitution over sales of unit investment trusts. This highlights the importance of proper regulation and oversight in the investment industry to protect investors. Meanwhile, Investors Capital is in the process of closing down, raising questions about the future of certain investment trusts.
The Financial Conduct Authority (FCA) interprets legislation that compels investment trusts to report their costs in the same format as open-ended funds. This transparency is crucial for investors to make informed decisions about where to put their money. AAM has exceeded $3 billion in cumulative UIT sales, with CJL serving as the portfolio consultant, showcasing the success of certain trusts.