An Equity Unit Investment Trust (UIT) is a registered investment company that offers a fixed portfolio of equity securities. These securities are chosen by professional money managers to accomplish the stated investment objectives of the trust for a set period of time.

A variety of equity UITs exist, designed to achieve a broad range of investment objectives. The investment portfolios of equity UITs are comprised of stocks, which historically have greater growth potential, but also have a higher degree of risk.

Trust portfolios offer investment strategies from conservative to aggressive growth. Investment minimums can be as low as $1,000 or $500 for qualified money.

A diverse portfolio of equities are combined and offered to investors in the form of units, which entitle the unit holder to a share of the principal and dividends of the trust. The array of equities offered in an equity UIT make it possible for a single investor to diversify their funds without committing a large sum of cash to multiple equities.

Types of Equity UITs

• Sector—Focus on specific areas of the market in an attempt to capitalize on emerging trends in those areas. Sector trusts can be broadly focused or narrowly focused on a specific subsector. Typically, sector trusts strive to achieve above-average capital appreciation. The maturity of a sector UIT usually ranges from 15 months to 5 years.

• Strategy—Focus on the potential for capital appreciation through strategies that have historically outperformed specific indices and the market as a whole. The strategies employed in a UIT may be based on major domestic or international indices. The maturity of a strategy UIT is usually one year, although the strategy of the UIT itself is based upon a long-term investment objective.

• Theme—Focus on particular market opportunities that demonstrate potential for capital appreciation. Equity trusts may cover several sectors. The underlying strategy always attempts to capitalize on trends in those sectors. The maturity of a theme UIT usually ranges from 15 months to 5 years.

• Index—Focus on average annual returns similar to major indices such as the Dow Jones Industrial Average, NASDAQ 100 or S & P 500. Uniquely, index UIT portfolios are reviewed periodically and may change, which would result in taxes for the unit holder. The maturity of an index UIT usually ranges from 6 to 25 years.

Unit Investment Trusts are offered and sold by prospectus only. You should carefully consider the investment objectives, risks, expenses and charges of the investment company before you invest. Your Northwestern Mutual Investment Services Registered Representative can provide you with a prospectus that will contain the information noted above, and other important information that you should read carefully before you invest or send money.