Unit Investment Trusts

Unit Investment Trusts (UITs) were once primarily considered to be income producing investment products. Over the years, the demand for the products' general strategy has prompted issuers of UITs to broaden their coverage to include not only municipal (tax-free) trusts, but also equity, treasury, and corporate trusts. UITs are simply a fixed portfolio of stocks, bonds, or a combination of both with a fixed maturity which are professionally selected.

Tax-Free Unit Investment Trusts

There are many advantages to owning tax-free UITs:

• $1,000 initial investment (Individual municipal issues carry a $5,000 minimum.)
• Portfolio of 10-25 individual municipal bonds
• Specified maturity date, unlike a tax-free fund
• Exempt from federal income taxes; State specific trusts may also be state income tax-exempt. Income may be subject to federal alternative minimum tax

Taxable Unit Investment Trusts

For those not seeking the advantage of tax-free products, there are a variety of taxable UIT products available:

• Growth - A fixed portfolio of stocks professionally selected to satisfy a particular index or market sector, i.e., Dow 30 Index, technology or utility.
• Growth and Treasury - A portfolio consisting of 50% stocks and 50% U.S. Treasury STRIPS. The STRIPS are guaranteed by full faith and credit of the U.S. Government. This strategy guarantees return of an investor's principal in worst-case scenarios, while offering the growth potential of a portfolio of stocks.
• Treasury - A fixed portfolio of U.S. Treasuries, usually in a laddered maturity format. The laddered portfolio attempts to minimize interest rate risk by buying treasuries of various maturities.
• Corporate - A fixed portfolio of corporate bonds. These trusts offer varying average maturities as well as different levels of credit quality - from high-yield to insured structures.

Investors should consider the Investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus contains this and other information about the investment company. A prospectus is available from an Investment Executive. Please read the prospectus carefully before investing.