Investing June 29, 2001

UITs Draw $1.13B in May Assets

June 29, 2001 (PLANSPONSOR.com) - Unit investment trusts attracted $1.13 billion in assets in May, a dramatic decrease from the $12.5 billion deposited a year ago, according to figures from the Investment Company Institute (ICI).
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Unit investment trusts are investment companies that purchase fixed portfolios of selected stocks or bonds.

Last month deposits increased by a comparable $1.11 billion, though that was less than half the level of a year ago, according to ICI (see UIT Deposits Off Sharply From Year Ago ).

Also:

  • Deposits to equity trusts totaled $942.7 million in May, compared with $12.43 billion in May 2000
  • Tax-free bond trusts issued shares in May with deposits of $160.1 million compared with $60.5 million in May 2000
  • Shares issued in May by taxable bond trusts reached $27.2 million compared with $10.5 million in May 2000
  • May saw 31 new tax-free bond trusts issuing shares, no new taxable bond trusts, and 45 new equity trusts.

Most commonly offered in May were long-term bond trusts having an average weighted maturity of more than 15 years with $164.3 million in shareholder deposits.

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