Unit Investment Trusts (UITs) Attorneys Based in New York

UITs are investments that consist of a fixed portfolio of bonds or securities. They are offered for a fixed length term, after which investors are entitled to receive a prorated portion of the portfolio’s net assets. However, investors are unable to make any changes to the portfolio during volatile market conditions.

If your broker has pressurized or misguidedly persuaded you to invest in a UIT and you suffered unjustified financial losses, Weltz Law is here to provide legal guidance and assistance. Get started by calling us at (877) 905-7671 today.

UITs Explained

UITs are a group of fixed, pre-packaged securities or bonds, sold to investors for a fixed period of time. This can range from anywhere between 13 months and goes up to years. As a buy and hold strategy, the portfolio is not actively traded but remains fixed until its termination. This means that investors are unable to take action to buy or sell, even when market conditions call for it. This risk is heightened if the securities are in particularly risky or volatile sectors. Upon the termination of the UIT, clients are often pressurized to reinvest, rolling over their units into a similar, newly created UIT. In addition, there can be many fees and costs associated with UITs, including sales charges and taxes. These costs can easily add up and eat into returns.

Proving UITs Losses

Although UITs can have a place in certain investors’ portfolios, there is no denying that they are complicated and leave an opening for stockbrokers to take advantage of less informed clients. The responsibility is on brokers to ensure that their clients understand the risks associated with any potential investment, and the failure to conduct due diligence can result in legal action being taken against them. At the very least, brokers should ensure that any investments they recommend are suitable for the investor’s risk profile and financial goals.

Recovering Damages from UITs Losses

If you have been suffered an undue loss from an UIT investment due to inadequate care on the part of your broker, you are protected under the law. Whether the failure to conduct due diligence is deliberate or unintentional, you could be entitled to a recovery of the difference between the actual and estimated values of the portfolio, if the broker had exercised the due care before recommending an investment product to you. If the broker deliberately misled you for their own financial gain, an additional recovery may be possible.

Discuss Your UITs Case With Our Attorney Today. We Represent Clients Nationwide.

When you have been the victim of UIT losses, it can feel like no one is on your side as the person you trusted most for financial advice, your broker, has let you down. This is where our professional and knowledgeable attorneys at Weltz Law can help. With a collective experience of over 30 years in securities litigation, we can assist you with exploring your legal options and starting the process of claiming recoveries.

You can reach Weltz Law at (877) 905-7671 or via the form online to schedule a meeting regarding your Unit Investment Trusts (UITs) case.