Investing January 16, 2002

UIT Deposit Increases Slowed in October

January 16, 2002 (PLANSPONSOR.com) - Deposits to Unit Investment Trusts increased by $1 billion in October 2001, significantly below a year before when deposits were up $2.8 billion, according to figures compiled by the Investment Company Institute (ICI).
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Unit investment trusts, or UITs, are investment companies that purchase fixed portfolios of selected stocks or bonds.

Also, according to the ICI:

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  • Deposits to equity trusts were  $817 million in October 2001, down from $2.4 billion in October 2000
  • Tax-free bond trusts issued shares in October 2001, with deposits of $113 million, compared with $66 million in October 2000
  • Taxable bond trusts shares were also way down in October at $73 million, compared with $264.million a year earlier.

There were 20 new tax-free bond trusts issuing shares in October 2001, two new taxable bond trusts, and 55 new equity 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 October 2001, with $160 million in shareholder deposits.

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