UITs Continue to Slide in November

December 23, 2002 (PLANSPONSOR.com) - Unit Investment Trusts' deposits fell during November to $604 million from October's $798.7 million, according to the Investment Company Institute (ICI).

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 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.

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