In UITFs, what is the primary purpose of a trustee?

In Unit Investment Trust Funds (UITF), the primary purpose of a trustee is to hold legal ownership of the trust property. The trustee is responsible for safeguarding the assets of the UITF on behalf of the investors. This involves ensuring that the investments are properly managed in compliance with legal and regulatory standards, but the essential duty revolves around maintaining ownership and control of the fund's assets.

While the trustee may also play a role in overseeing the management of these assets and may work closely with asset managers to implement investment strategies, their core responsibility is centered on the legal ownership aspect. This means they are the entities recognized in law as the holders of the trust's property, thereby providing a layer of protection for the investors' interests.