This disclosure statement explains certain options and features which are common to most UITs. Of course, we cannot cover everything about UITs. The best source of information about a specific UIT is the investor prospectus prepared by the unit investment trust sponsor, which your Janney Financial Advisor will provide upon request. If you have questions about an investment, you should discuss them with your Financial Advisor before you invest.

What is a UIT? 

A Unit Investment Trust (UIT) is a pooled investment vehicle which generally buys and holds a fixed portfolio of professionally-selected securities to achieve a stated investment objective for a fixed, predetermined period of time - typically 13, 15, or 24 month terms. Because the investment portfolio of a UIT generally is fixed, investors know what they are investing in for the duration of their investment. Investors will find the portfolio securities held by the UIT listed both in its prospectus and on sponsor websites.

A UIT will make a one-time "public offering" of only a specific, fixed number of units). Typically, a UIT sponsor will buy back an investor’s units at their net asset value (NAV).

Some Risks of Investing in UITs

UITs are not actively managed. As a result, securities in the trust will not be sold to take advantage of changing market conditions. The trust will continue to hold securities even if their market value and dividend yields have changed. Risks include, but are not limited to, economic, financial market, security structure, interest rate, credit quality, duration, liquidity, political and geographic risk factors. For more detailed information on the risks and benefits of UITs, please contact your Financial Advisor.

Costs of Investing in UITs

The UIT prospectus includes a fee table that lists the charges an investor will pay. UIT investors generally pay one-time fees, an initial or deferred sales charge which includes a creation and development fee, in addition to one-time organization costs and annual trust operating expenses. The application of these charges varies, depending on the sponsor, the length of the trust, trust holdings, and whether the UIT is an equity or a fixed income trust.

All UIT portfolios are also be available for purchase through a fee-based account if you currently have or are eligible to open a fee-based account. Instead of paying the initial or deferred sales charges, clients pay an annual fee that is based on a percentage of the total value of the account’s eligible securities. However, these fee-based trusts typically charge a one-time creation and development fee in addition to organization costs and annual operating expenses.

Understanding How Janney and Your Financial Advisor Are Compensated

Janney and our Financial Advisors receive compensation when clients invest in UITs. An advisor will receive a dealer concession of 1.25% for 13 and 15 month trusts and 2.0% for 24-month trusts. The commission comes directly out of the sales charge.

Through our relationship with unit investment trust sponsors, Janney and our Financial Advisors also receive other forms of compensation that do not directly affect the amounts our clients are charged, including volume concession arrangements and promotional assistance. These forms of compensation are meant to cover a variety of initiatives and expenses incurred by Janney, including expenses associated with marketing UITs to investors, educating Financial Advisors, and performing administrative services for clients.

Janney Financial Advisors, consistent with the firm’s practices, also receive non-cash compensation and other benefits from UITs. Such non-cash compensation includes invitations to attend conferences or educational seminars sponsored by UIT sponsors or their advisers or distributors, payment of related travel, lodging and meal expenses, and receipt of gifts and entertainment. Acceptance of these benefits is in accordance with industry regulations and Janney’s policies. Clients should review all unit investment trust prospectuses and other offering documents for further explanation.

Receiving non-cash compensation presents a conflict of interest and gives Janney and its Financial Advisors an incentive to recommend investment products based on the compensation received, rather than based on a client’s needs. We address this conflict by maintaining policies limiting gifts and gratuities and disclosing this conflict to clients.

Early Redemption/Exchange

While UITs are designed to be bought and held until they reach termination, investors can sell their holdings back to the sponsor on any business day. These early redemptions will be paid based on the current underlying value of the holdings (NAV).

Investors in fixed income UITs should make particular note of this because it means that the amount paid to the investor may be less than the amount that would be received if the UIT was held until maturity, as prices change with market conditions.

All early redemptions reflect the sales charge and one-time fees investors would be charged if they had held the UIT for its entire term.

Volume Concession

Janney receives compensation from the UIT sponsors listed below in the form of marketing or volume concession payments calculated as a percentage on the amount of assets invested in each UIT series. That percentage typically increases as higher sales volume levels are achieved.  Accordingly, the receipt of such compensation provides Janney an incentive to recommend UITs that provide greater levels of compensation. Janney will not receive additional concession on sales of UITs in advisory accounts but UIT asset levels in advisory accounts are included in determining whether the sales volume has been met. The volume concession (revenue sharing) for UITs range from 0.035% to 0.175% of total sales.

As of December 31, 2019 Janney has entered volume concession agreements with the following Unit Investment Trust Sponsors, known as our “Product Sponsors". 

Adviser’s Asset Management (AAM)

First Trust Portfolios

Guggenheim Investments




For more information about Janney, please see Janney’s Relationship Summary (Form CRS) on which details all material facts about the scope and terms of our relationship with you and any potential conflicts of interest.

To learn about the professional background, business practices, and conduct of FINRA member firms or their financial professionals, visit FINRA’s BrokerCheck website: