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Unit Investment Trusts

A Unit Investment Trust (UIT) is a registered investment company that offers a fixed portfolio of equity and/or 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.

The investment portfolio of a UIT is available for purchase in the form of units, which represent an investor's undivided stake in the total portfolio. UITs allow an investor to receive regular income from the trust, depending upon the type of UIT.

  • Fixed Income UITs—Designed to generate a relatively predictable and stable stream of income over the life of the trust.
  • Equity UITs—Designed to achieve specific investment objectives through portfolios which historically have greater growth potential but also have a higher degree of risk.

A UIT offers investors an opportunity to easily diversify their investments and to allocate assets across a broad range of securities. Choosing a combination of fixed income and equity UITs can be an important component of a successful investment strategy.

The nature of a UIT is unique in that it offers the individual investor diversification, professional investment selection, distributions, and reinvestment and rollover options—all within a fixed portfolio of securities.

To determine if UITs fit with your overall investment strategy, contact a Northwestern Mutual Financial Network Representative.* They will help you identify your investment objectives, goals and risk tolerance. With your personal investor profile in mind, together you can decide if UITs should be incorporated into your investment strategy, and which UITs may be right for you.

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.