unit trust

American  

noun

1. Also called fixed investment trust,.  Also called fixed trust.  an investment company that has a fixed portfolio of securities, usually of a single type, such as municipal bonds or corporate bonds, which are held to maturity: each investor receives a share in the amount proportionate to their holding.

2. Also called unitrust.  an inflexible type of mutual fund in which each investor is obligated to invest a total specified amount in a certain number of shares, payable in equal amounts on a monthly or quarterly basis over an extended period of time.

3. British. mutual fund.

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unit trust British  

noun

1. an investment trust that issues units for public sale, the holders of which are creditors and not shareholders with their interests represented by a trust company independent of the issuing agency

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Etymology

Origin of unit trust

First recorded in 1935–40

Example Sentences

Nelson was a paid employee first, and then was made a partner via LRB Proprietary Ltd., the group’s unit trust.

From New York Times • Mar. 22, 2019

In the past 10 years no new trust company licences have been issued, although 15 unit trusts have been formed under the 11 existing unit trust licences.

From The Guardian • Sep. 3, 2018