Who bears the risks associated with UITF investments?

The risks associated with UITF investments are borne by the UITF investor. In this investment structure, investors should be aware that they are taking on the risks inherent to the underlying assets held within the UITF. This includes market risks, credit risks, and any fluctuations in the value of the investments.

It is important to note that while fund managers and the UITF trust entity are responsible for managing the investments and ensuring compliance with regulations, they do not assume the investment risks themselves. Their role is to make investment decisions on behalf of the investors, but the ultimate risk rests with the investors who may experience gains or losses based on the performance of the fund. Similarly, the regulatory body oversees compliance and protects investors but does not engage in risk-taking with the investments. This clearly establishes the investor as the party who bears the financial risk associated with UITF investments.