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SIE: Investment Companies & Packaged Products
SIE practice questionmediumUITs

An investor in a UIT can expect which of the following at termination?

  1. AThe ability to reinvest automatically in a new UIT without any sales charge
  2. BA final distribution based on the value of the portfolio at maturity✓ Correct answer
  3. CShares being listed for trading on an exchange
  4. DRegular reinvestment of principal by portfolio managers
Explanation

Why BA final distribution based on the value of the portfolio at maturity

A is correct; at termination, UITs pay out net proceeds to holders. B, C, and D are not guaranteed or standard UIT features.

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