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U

UCITS

A fund that can be marketed in all countries in the European Union. UCITS stands for ‘Undertakings for Collective Investments in Transferable Securities’ and is a European Directive which has been adopted in the UK.  UK based UCITS funds are *OEICs*, with *unit trusts* abiding by the non-UCITS Retail Schemes (NURS) rules due to trust law being unrecognisable by other European Member States.

Underlying Yield

The Underlying Yield reflects the annualised income net of expenses of the fund (calculated in accordance with relevant accounting standards) as a percentage of the mid-market unit price of the fund as at the date shown.   It is based on a snapshot of the portfolio on that day.   It does not include any preliminary charge and investors may be subject to tax on distributions.

Units

*Unit trusts* are divided into “units” of equal value, therefore an investor buys units in the unit trust.  The *OEIC* equivalent is known as a *share*.

Unit linked policies

These are insurance products where you pay a premium which is then invested in a fund holding a range of *assets*, usually including *equities* and *fixed interest securities*. Part of the premium paid pays for life assurance. Unit-linked policies are similar to with-profits products but do not invest in as many assets.

Unit Trust

Private individuals pool their contributions with others, which combine to form a large fund.  The fund invests in a spread of different *assets* to minimise the *risk* of loss.  Also known as collective/pooled investments or investment funds. Unit trusts can be both *single* and *dual-priced*.