UIT Deposits Soar in December

January 16, 2003 (PLANSPONSOR.com) - Unit Investment Trusts saw deposits soaring to $847.6 million in December compared with November's $604 million, according to the Investment Company Institute (ICI).

According to ICI data, December deposits to equity trusts totaled $665.6 million, up sharply from November’s $433.2 million. Tax-free bond trusts had $110.5 million in December deposits, compared to $109.7 million the month before.

There were 45 new trusts issuing shares in November including 21 equity trusts, 20 tax-free bond trusts, and four taxable bond 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 December with $145.9 million in shareholder deposits.

The latest ICI data follows the organization’s November data, which showed a drop in deposits from $798.7 million in October to $604 million in November (See UITs Continue to Slide in November).

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.