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.


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.