According to ICI data, November deposits to equity trusts totaled $433.2 million, down from October’s $526.5 million, which in turn was down sharply from the month before (see UIT’s Down in September; Bond Trusts Up ). Tax-free bond trusts had $109.7 million in November deposits, compared to $156 million the month before.
There were 47 new trusts issuing shares in November including 25 equity trusts, 19 tax-free bond trusts, and three 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 November with $139.7 million in shareholder deposits.
Unit investment trusts, or UITs, are investment
companies that purchase fixed portfolios of selected
stocks or bonds, and hold them through a stated
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.