UITs Plummet in May

June 16, 2004 (PLANSPONSOR.com) - Asset flows into unit investment trusts (UIT) plunged in May.

UITs, investment companies that hold fixed portfolios of selected stocks or bonds, had total deposits of $975.5 million, down 35.5% from April’s $1.51 billion, according to data complied by the Investment Company Institute (ICI).

Leading the descent were taxable debt UITs, which got slapped with a 47.4% plunge from its April total of $89.4 million to May’s $46.7 million. Equity UITs likewise headed south in a big way with a whopping 36.8% giveback to May’s $829.7 million total. Tax-free debt UITs also saw a decrease in May to $99 million, from April’s $111.6 million.

May recorded 42 new trusts issuing shares for the month.  Of that total, 24 were equity trusts, 15 were tax-free bond trusts and three 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 May, with $72.5 million in shareholder deposits.