UIT Deposit Increases Slowed in October

January 16, 2002 (PLANSPONSOR.com) - Deposits to Unit Investment Trusts increased by $1 billion in October 2001, significantly below a year before when deposits were up $2.8 billion, according to figures compiled by the Investment Company Institute (ICI).

Unit investment trusts, or UITs, are investment companies that purchase fixed portfolios of selected stocks or bonds.

Also, according to the ICI:

  • Deposits to equity trusts were  $817 million in October 2001, down from $2.4 billion in October 2000
  • Tax-free bond trusts issued shares in October 2001, with deposits of $113 million, compared with $66 million in October 2000
  • Taxable bond trusts shares were also way down in October at $73 million, compared with $264.million a year earlier.

There were 20 new tax-free bond trusts issuing shares in October 2001, two new taxable bond trusts, and 55 new equity trusts.

In terms of maturity, long-term bond trusts having an average weighted maturity of more than 15 years were the most commonly offered in October 2001, with $160 million in shareholder deposits.