A fixed income Unit Investment Trust (UIT) is a registered investment company that offers a fixed portfolio of fixed income 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 fixed income UITs exist, and are designed to generate a relatively predictable and stable stream of income over the life of the trust. Fixed income UITs are portfolios comprised of state and national municipal bonds, corporate bonds, international bonds and government-backed or mortgage-backed securities.

The portfolios of these UITs are fixed, meaning that the investor knows, upon purchasing units of the trust, which types of securities are being purchased, the stated maturities, quality ratings, call dates and expected income. Low minimum investment amounts are available in a UIT. Investors may purchase units for as little as $1,000.

Fixed income UITs provide income on a monthly, quarterly or semi-annual basis.

Types of Fixed Income UITs

• Tax Exempt—Focus on municipal bonds typically issued to finance public projects such as schools, highways and hospitals. These trusts are often structured to provide regular tax-exempt income and may even be structured to include only the highest rated bonds, or bonds localized to a particular geographic region. Municipal bonds in the portfolio may have an average life from 5 to 30 years. Although certain securities may be exempt from federal income taxes, state or local/municipal and federal alternative minimum taxes may apply.

• Taxable—Focus on corporate or international bonds, or government or mortgage-backed securities. These trusts are structured to provide regular income. The bonds included in the portfolio may have an average life from 5 to 30 years.

• Corporate Bond Trusts—Offer a variety of bond quality ratings, encompassing a broad spectrum of investment objectives and levels of risk tolerance.

• International Bond Trusts—Offer the opportunity to diversify into global markets that may not otherwise be accessible to the individual investor. These trusts are also associated with a higher level of volatility, which often accompanies the potential for higher returns.

• U.S. Government Securities—Offer minimal risk to investors looking to hold government securities such as U.S. Treasury bonds. These trusts offer monthly income, free from state and local taxes.

• Mortgage-Backed securities—Offer investors the opportunity for a high level of income by holding mortgages backed by agencies of the U.S. Government. These agencies can include the Government National Mortgage Association (GNMA) and the Federal Home Loan Mortgage Corporation (FHLMC). These trusts usually distribute interest and principal on a monthly basis, although the interest amount varies over the life of the trust.

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.