A unit trust that invests in Ginnie Mae certificates and passes through interest and principal repayments to the trust's owners. Ginnie Mae trusts differ from Ginnie Mae mutual funds in that the trusts do not continually invest in new certificates. As principal is returned, the trust's owner will receive progressively smaller interest payments. Essentially, owning a Ginnie Mae trust is much like owning a certificate itself. A sales fee is charged, but, unlike Ginnie Mae funds, a trust charges no management fee because no management is involved once the trust has been set up and has become operative.
