First of all I need to call attention to the disclaimer at the bottom
of the page. We are researchers, not Financial Advisors, your best
financial advice would come from a professional financial advisor who
is experienced in foreign market investing. Okay, with that said?
UTI (Unit Investment Trusts)
Unit investment trust is a fixed portfolio of investments.
These are held until the trust is liquidated at a predetermined date
in the future. Investors who want to trade shares of a UIT before it
matures can often do so on the secondary market. Unlike a mutual fund,
UIT share prices in the secondary market may be priced above or below
the net asset value of the trust's actual holdings.
When you buy shares of UITs, you typically pay a sales fee, or load,
of around 4 percent or 5 percent; many mutual funds carry no sales
load at all.
From ?What Your Broker Will Never Tell You?
These are Unit Investment Trusts or a fixed portfolio of stocks,
municipal bonds and mortgage backed securities. Yields are usually low
and are not guaranteed. Commissions can be very high and the market
can be limited when you want to sell. Although UIT's are similar to
mutual funds, we would not recommend either for the smart investor.
Remember, you need not pay some fund manager a high salary for doing
what you can do for yourself by devoting some time to researching
stocks and keeping your eye on industry trends which are producing the
biggest gains on Wall Street. The returns of from 50% to 300% for the
average investor who does his own home work, is reward enough for the
From ?MSN Money? FAQ?s on UTI?s
?Are unit investment trusts (UITs) a good way to buy foreign stocks?
International equity unit investment trust (UITs) can be a good way to
invest in stocks of international or foreign companies. The most
common types of international stock trusts include large-cap foreign
stock trusts for capital appreciation; foreign industry stock trusts
for capital appreciation; and specialized foreign stock trusts based
on a certain portfolio management theory for capital appreciation.
Like any foreign investments, however, international stock UITs carry
currency risk. This means that in addition to the risk of the
investments in the trust, your investment can fluctuate along with
changes in currency exchange rates.?
Something to keep in mind, is that the global market during 02 ? 04
has been horrible. Many of the UTI?s have huge losses during these
years (some as much as 80% ) and are now showing a rise in the last
year of 40-60%, so they are looking really good right now. ?Looking
really good? can be very deceptive.
I?ve tried to find those that have either staid with the market, or
were hovering above it during the down times, and rose higher than the
market when things started to change.
Searching the net for UTI?s
There are of course several large list websites for UTI?s, for example:
Unit Invest Trusts from Goliath:
Seperating the Real Estate Investment Trusts from the Unit Investment
trusts on the search engines can be done by using the minus switch,
for example :
+China +Investment +2006 +Trust -Real ?Estate
( see it here http://tinyurl.com/97pme )
The same search works on the News page as well.
(see it here http://tinyurl.com/dsync)
Some Interesting Unit Trusts & OEICs
Martin Currie Unit Trusts Limited
To produce long-term capital growth by investment in a portfolio of
securities world - wide in any economic sector, although generally
concentrated in smaller and developing markets.
Gartmore Fund Managers Limited
Gartmore House, 8 Fenchurch Place, London, EC3M 4PB
The Fund aims to achieve a long-term return, in excess of the
long-term return that is typically achieved from investments in Hong
Kong and Chinese equity markets.
Aberdeen Unit Trust Managers Limited
10 Queens Terrace, Aberdeen, AB10 1YG
The objective of this Fund is to provide consistent above average
capital growth over the medium to long term from investment in a
balanced portfolio of quality investments in Asia and the Pacific
Basin, including Japan.
Some Interesting Investment Trusts
Select S&P Greater China
Greater China Series 2 (same as above, just more information)
Main Website for the Greater China Trust
With the changes they are making to this fund 2006 should see some
good growth, and if nothing else the type of action they saw in 2005.
The JPMorgan Chinese Investment Trust plc
Long term capital growth by investment in 'Greater China' companies.
Invests in companies which are quoted on the stock exchanges of China
and Taiwan or which derive a substantial part of their revenues or
profits from these territories.
Merrill Lynch Investment Managers Limited
?Graham Birch, manager of the Merrill Lynch World Mining investment
trust, is maintaining an aggressive position despite the sector
underperforming the wider market.
Birch is banking on further growth in China and the US, and is using
gearing in expectation of a rebound in share prices. He said: "We have
noticed a tendency for mining equities to be rather weak this year and
this means their performance has diverged somewhat from commodity
markets, which, in general, have continued to be strong.?
Links of Interest
U.S. Securities and Exchange Commission