[1] In addition to the UK, trusts are found in Fiji, Ireland, the Isle of Man, Guernsey, Jersey, New Zealand, Australia, Kenya, Uganda, Tanzania, Namibia, South Africa, Singapore,[3] Malaysia and Zimbabwe.
[4] The rationale behind the launch was to emulate the comparative robustness of US mutual funds through the 1929 Wall Street crash.
In this way there is no supply or demand created for units and they remain a direct reflection of the underlying assets.
If this is the case, the provider will extract revenue equal to the AMC without incurring any expenses managing the fund.
Subject to regulatory rules these prices are allowed to differ and relate to the highs and lows of the asset value throughout the day.
In the UK many unit trust managers have converted to open-ended investment companies (OEICs) in recent years.
The motivation for conversion is often cited as a simplification and precursor to offering funds Europe-wide under EU rules.
More cynical observers may have noted that there is increased latitude to hide charges in the OEIC Dilution Adjustment (more commonly referred to as "Swinging Single Price") whilst maintaining the veneer of simplification [citation needed].
[15] Much like investments in MLPs, unitholders are typically issued a K-1 rather than a Form 1099 at the end of each tax year.