Unitization

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 Account Services.