UIT Deposits Down in February

March 26, 2004 (PLANSPONSOR.com) - Asset flows into unit investment trusts (UIT) receded in February.

UITs, investment companies that hold fixed portfolios of selected stocks or bonds, had total deposits of $1.13 billion in February, down from the $1.91 billion in January deposits (See  Equities Blaze the UIT Trail in January ), according to data complied by the Investment Company Institute (ICI).

Leading the descent were equity UITs, which ended February with total deposits of $806 million, down from $1.7 billion in January.  Conversely, the other two categories saw deposits pick up for the month.   Tax-free debt UITs at $147 million, up from last month’s $142 million and taxable debt UITs reporting total deposits of $103 million, higher than the $83 million recorded the previous month.

February recorded 46 new trusts issuing shares for the month.  Of that total, 22 were equity trusts, 19 were tax-free bond trusts and five were taxable bond trusts.

In terms of maturity, intermediate bond trusts having an average weighted maturity between five and 15 years were the most commonly offered in February, with $145.1 million in shareholder deposits.