Investing January 13, 2004

ICI: UIT Deposits Down in November

January 13, 2004 (PLANSPONSOR.com) - Asset flows into unit investment trusts (UIT) receded in November.
Reported by

UITs, investment companies that hold fixed portfolios of selected stocks or bonds, had total deposits of $997 million in November, down from the $1.2 billion in October deposits (See ICI: UIT Deposits Up $233 Million in October ), according to data complied by the Investment Company Institute (ICI).

Leading the descent were equity UITs, which ended November with total deposits of $832 million, down from $1 billion in October.  This was followed by tax-free debt UITs at $112 million, down from last month’s $125 million, and taxable debt UITs reporting total deposits of $53 million, lower than $83 million recorded the previous month.

November recorded 44 new trusts issuing shares for the month.  Of that total, 24 were equity trusts, 119 were tax-free bond trusts and one was a taxable bond trust.

In terms of maturity, long-term bond trusts having an average weighted maturity of more than 15 years were the most commonly offered in November, with $101 million in shareholder deposits.

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