UIT Deposits Up in April

May 21, 2004 (PLANSPONSOR.com) - Asset flows into unit investment trusts (UIT) increased in April.

UITs, investment companies that hold fixed portfolios of selected stocks or bonds, had total deposits of $1.51 billion in April, up from the $1.35 billion in March, according to data complied by the Investment Company Institute (ICI).

Leading the ascent were equity UITs, which ended February with total deposits of $1.3 billion, up from $1.1 billion in March.   While deposits were also up for taxable debt UITs, $89 million compared to $76 million in the previous month, they were down for tax-free debt issues, $112 million in April compared to $189 million in March. 

April recorded 50 new trusts issuing shares for the month.  Of that total, 30 were equity trusts, 15 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 April, with $101.5 million in shareholder deposits.