Unitization is a process by which a portfolio of assets held in multiple and single
investment accounts can be efficiently allocated across multiple sub-accounts. It
does this by creating, pricing and tracking units that represent undivided interests
in the overall portfolio.
Wilmington Trust Retirement and Institutional Services Company is an industry leader
in unitizing portfolios. Our efficient unitization process broadens the universe
of assets available for investment. By calculating a single unit value, we facilitate
the use of separately managed accounts, company stock, ETF’s and ill-liquid assets
for clients that require specialized sub-accounting routines.
For example, Sovereign Indian Nations that operate gaming establishments often hold
proceeds from those operations in trusts. The assets in those are used to fund a
variety of programs that benefit tribe members, and are typically dispersed among
many different investment accounts, each focused on a different asset class or sub-asset
class. By unitizing the trust’s portfolio, the tribe can create different sub-accounts
for each benefit program, and easily track each one’s share of the portfolio.
To learn more about our unitization services, just click here to contact a representative specializing in Institutional