UIT Deposits Dip in August

September 28, 2001 (PLANSPONSOR.com) - Deposits to unit investment trusts totaled $3.59 billion in August, a substantial increase from August 2000's $2.74 billion, according to data compiled by the Investment Company Institute (ICI).

In comparison, July 2001 deposits came in at $7.24 billion (see July UIT Deposits Continue to Climb )

Unit investment trusts, or UITs, are investment companies that purchase fixed portfolios of selected stocks or bonds, and hold them through a stated termination date. 

“Units” in the trust are sold to investors, who receive a share of principal and interest, or dividends depending on the underlying investments.¬†Fixed income UITs pay monthly income in contrast to bonds that only pay income semiannually or annually.

Details

Deposits to equity trusts totaled $3.38 billion in August, compared with $2.41 billion in August 2000.

Tax-free bond trusts issued shares in August with deposits of $161.5 million, compared with $100.3 million a year previously.

Shares issued in August by taxable bond trusts reached $49.5 million, compared with $229.5 million in August 2000.

There were 33 new tax-free bond trusts issuing shares in August, one new taxable bond trust, and 44 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 August, with $175.9 million in shareholder deposits.

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