Unit Investment Trusts (UITs)


For Financial Professional Use Only

J.V.B. Financial acts as a co-manager/underwriter of new issue UITs. Most simply, a unit investment trust is an investment vehicle which purchases a fixed portfolio of stocks, bonds or other property and qualifies as an “investment company” pursuant to the Investment Company Act of 1940 the “Investment Company Act”.

A UIT’s portfolio is chosen by its sponsor and follows a buy and hold strategy for a pre-determined term to achieve a specific investment objective. Organized under a trust indenture, UITs are similar to mutual funds in that they issue “only redeemable securities, each of which represents an undivided interest in a unit of specified securities.”  Like closed-end funds, UITs typically issue a specific fixed number of shares. Unlike mutual funds or closed-end funds, however, UITs have a pre-set maturity date based on the portfolio’s underlying investments and/or investment objectives.

J.V.B. Financial has partnered with Olden Lane Securities LLC (“Olden Lane”) to launch a new series of innovative unit investment trusts (UITs) called Target Outcome Funds.

Target Outcome Funds are a new category of UITs developed by Olden Lane which seeks to offer a liquid, transparent and cost-effective vehicle for outcome-driven returns.  Through combining US Treasuries and exchange-listed option contracts which reference ETFs tracking broad-based equity indexes, Target Outcome Funds can offer efficient exposure to equity-market benchmarks within certain risk parameters, such as protection against downside risk.  UITs developed on Olden Lane’s platform are designed to provide better liquidity and transparency, and lower counterparty risk, versus similar products currently offered as structured notes.

 

To learn more about participating in this product, contact your JVB representative or call the trading desk at 561-939-1269.

Current Issue

Capped Performance Portfolio with Buffer Protection
Linked to the SPDR® S&P 500® ETF Trust

Prospectus

Brochure

Fact Sheet

Press Release

Supporting Documentation
(White Papers)

The Unit Investment Trust:
Maintaining Integrity Through Time

JANUARY 2016

The Natural Plateauing of Liquid Alternative Funds:
What Comes Next?

OCTOBER 2016

Some Thoughts on the Evolution of the
Design of Financial Products

JUNE 2016

Reflections on Time and Structure:
Part 1

FEBRUARY 2017

Reflections on Time and Structure:
Part 2

APRIL 2017