Municipal Bond Unit Trusts

Description
A municipal bond unit trust is an investment in a fixed, diversified group of professionally selected municipal bonds. As a unit-holder of a municipal bond unit trust, you own a portion of every municipal bond in the trust.

Objective
To provide income that is free from federal taxes and, in some cases, state taxes.

Suitability
Municipal bond unit trusts are well suited to income-oriented investors seeking tax-free income and diversification.

Product Features

• Monthly Income - Municipal bond trusts can offer unit-holders monthly checks.
  
  
• Diversification - Typically these trusts are comprised of a number of bonds, diversified by number, industry, issuer, and maturity.
  
  
• Bond Ratings– Municipal bond UITs contain only bonds that are rated investment grade or higher by one of the major rating agencies.. This means no "junk bonds". Many of the trusts contain AAA rated and individually insured bonds (Insurance relates only to the prompt payment of principal and interest of the securities in the portfolio and does not remove market risks. The terms of the insurance are more fully described in the prospectus, and no representation is made as to any insurer's ability to meet its commitments.)
  
  
• Liquidity - Municipal bond unit trusts can be liquidated on any business day.
  
  
• Protection - When initially offered, municipal bond unit trusts usually provide protection for a period of time against the bonds being called prior to maturity.
  
  
• Growth of Principal - Because municipal bond trusts are fixed-income investments, they allow only limited growth of principal.
  
  
• Tax Advantages - Interest is exempt from federal taxes, and in some cases, state taxes as well.
  
  
• Low minimum investment – Municipal UITs give investors the opportunity to own part of a greater number of municipal bonds with an investment as low as $2000, depending on the trust.

Municipal bond unit trusts may be subject to state, local or the Alternative Minimum Tax.

Municipal bond unit trusts are offered and sold by prospectus. You should consider the investment objective, risks, and charges and expenses carefully before investing. The prospectus contains this and other information. Your Edward Jones financial advisor can provide a prospectus, which should be read carefully before investing.

For more information, please contact your local financial advisor.