What is the exposure limit of UITFs to a single person or entity?

The exposure limit of UITFs to a single person or entity is set at 10% of the UITF's market value. This regulation is in place to promote diversification within the fund and to mitigate risks associated with over-concentration. By limiting any single investor's exposure, UITFs are better able to manage risk and maximize the potential for return on investment. This approach aligns with sound investment principles, as it helps to ensure that a single entity cannot significantly influence the UITF's performance and also protects the interests of all investors in the trust.

Understanding this framework is crucial for anyone involved in the management or investment in UITFs, as it highlights the importance of maintaining diversified investments to enhance stability and reduce vulnerability to market fluctuations or the performance of any one individual investor or entity.