Unit Trust and Your Portfolio

By: Sherace Pinnock, Senior Portfolio Advisor Posted:

A Unit Trust is a pooled fund that invests in securities such as stocks, bonds, money market instruments, and other assets. Unit Trust requires a smaller initial investment amount in comparison to accessing other investments, it’s simple and transparent. It is a great investment option especially if you do not have the time, knowledge, or expertise to start investing.

While unit trusts are typically not listed, they still maintain a high degree of liquidity, so if you ever need to encash you would be able to access your funds relatively easily.

With lower investment amounts typically less than $1,000,000, it is a more affordable avenue to start investing in a well-diversified portfolio (This means even if one of the companies does not perform as well as you hope, this would be balanced out by the returns from the other companies in the portfolio), Versus investing that starting amount on your own, it would be hard to build a similarly well-diversified portfolio. Proven Wealth Ltd. offers 6 separate unit trust funds 5 of which are in the top 3 funds in comparison to similar funds from local competitors. PROVEN Wealth is a great place to start with uni trust offerings denominated in JMD and USD providing clients who have varying risk appetites and preferences with suitable options.

Unit trusts are usually managed by a team of professionals who are actively managing your portfolio, as well as providing access to investment information, analysis, and tools to investors.

An independent trustee acts as the custodian of the unit trust’s assets, hence providing a safety net for investors, in our case by JCSD Trustee Services Limited


Therefore, if you ever need diversification, managed risk, smaller minimums, or a professionally managed investment a unit trust is a great option for you. The strength of a unit trust lies in the expertise of the company that manages. While arguable it may not show overnight returns, you can take advantage of dollar-cost averaging opportunities and be reminded that at the end of the day through the ebbs and flows you remember your goal.