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Investing March 18, 2003
UITs Gain Deposits in February
March 18, 2003 (PLANSPONSOR.com) - Unit investment
trusts (UIT) had total deposits of $651.4 million in February
on the strength of equity issues.
Reported by Eric Hazard
February’s deposits into UITs, investment companies that hold fixed portfolios of selected stocks or bonds, were down from January’s $1.2 billion (See UIT Deposits Blast Off As New Year Opens ) and $1.2 billion in deposits made in February 2002, according to statistics compiled by the Investment Company Institute (ICI).
The largest amount of total deposits was seen in equity UITs, which gathered $345.6 million. Equities were followed by Taxable Debt and Tax-Free Debt issuance, with deposits of $123.9 million and $182 million, respectively.
February recorded 56 new trusts issuing shares for the month. Of that total, 19 were equity trusts, 31 were tax-free bond trusts, and six were 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 February 2003, with $207.3 million in shareholder deposits.