The Cash Flow Kings Portfolio, Series 2 ("Trust") seeks to provide total return primarily through capital appreciation and secondarily dividend income.
|Wrap Fee Price||N/A|
|Remaining Deferred Sales Charge||$0.145000|
|Mandatory Maturity Date||12/7/2017|
|NASDAQ Ticker Symbol||CCFKBX|
|Inception Unit Price||$10.000000|
|Inception Bid Price||$9.900000|
|Inception Liquidation Price||$9.755000|
|Deferred Sales Charge Dates||
|Number of Holdings||25|
|Historical Annual Dividend Distribution||$0.058400|
All data is subject to change daily. Data may differ from the prospectus due to different data sources or market changes. Please refer to prospectus for additional information about the trust including the portfolio section criteria. Source: FactSet Research Systems Inc. unless otherwise noted. The total percentages may not be equal to 100% due to rounding. N/A indicates that certain securities have not been identified and/or classified by the data provider. A unit is a combination of securities or types of securities traded together.
|Weighted Average Price/Earnings (P/E) Ratio||44.02|
|Weighted Average Price/Book (P/B) Ratio||5.75|
|Weighted Average Market Cap (MM)||$66,294.94|
|US Common Stock||92.01%|
|Non US Common Stock||3.54%|
|Internet Software & Services||4.49%|
|Internet & Direct Marketing Retail||3.55%|
|Health Care Providers & Services||3.96%|
|Commercial Services & Supplies||8.06%|
|Food & Staples Retailing||6.96%|
|Energy Equipment & Services||3.54%|
|Oil Gas & Consumable Fuels||2.93%|
|Equity Real Estate Investment Trusts (REITs)||4.46%|
|Diversified Telecommunication Services||2.91%|
Past performance is no guarantee of future results. Investment returns and principal value will fluctuate with changes in market conditions. Investors' units, when redeemed, may be worth more or less than their original cost.
Principal Investment Strategy
Under normal circumstances, the Trust will invest at least 80% of the value of its assets in companies that the Sponsor believes are cash flow kings. Cash flow kings are defined as companies included in the S&P 500 Index that are both in the top 50% of relative cash flow from operations and that the Sponsor believes have the highest probability of delivering the revenue required to support each issuer's current stock price. The Sponsor believes that a concentrated portfolio of issuers possessing the above characteristics may represent a positive addition to a well-diversified portfolio. The Trust may invest in U.S.-listed companies, including U.S.-listed foreign securities, of all market capitalizations. As a result of this strategy, the Trust invests significantly in the consumer products sector.
In constructing the Trust’s portfolio, the Sponsor seeks to identify companies included in the S&P 500 Index that generate attractive cash flow from operations and that it believes have the highest probability of delivering the revenue required to support their current stock price. When calculating a company’s probability of delivering the revenue required to support its current stock price, the Sponsor considers the revenue required and a company’s historical ability to generate the required revenue. The Sponsor will select 25 companies weighted by their probability of delivering the revenue required to support their current stock price, while seeking to maintain sector diversification.
INDEX DEFINITION: The S&P 500® Index is a capitalizationweighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index in unmanaged and it is not possible to invest directly in the index.
Risks and Other Considerations
As with all investments, you may lose some or all of your investment in the Trust. No assurance can be given that the Trust’s investment objective will be achieved. The Trust also might not perform as well as you expect. This can happen for reasons such as these:
• Securities prices can be volatile. The value of your investment may fall over time. Market value fluctuates in response to various factors. These can include stock market movements, purchases or sales of securities by the Trust, government policies, litigation, and changes in interest rates, inflation, the financial condition of the securities’ issuer or even perceptions of the issuer. Units of the Trust are not deposits of any bank and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
• Share prices or dividend rates on the securities in the Trust may decline during the life of the Trust. There is no guarantee that share prices of the securities in the Trust will not decline and that the issuers of the securities will declare dividends in the future and, if declared, whether they will remain at current levels or increase over time.
• The Trust invests significantly in the consumer products sector. As a result, the factors that impact the consumer products sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. General risks of companies in the consumer products sector include cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, product liability litigation and increased government regulation. A weak economy and its effect on consumer spending would adversely affect companies in the consumer products sector.
• Inflation may lead to a decrease in the value of assets or income from investments.
• The Sponsor does not actively manage the portfolio. The Trust will generally hold, and may, when creating additional units, continue to buy, the same securities even though a security’s outlook, market value or yield may have changed.
See “Investment Risks” in Part A of the prospectus and “Risk Factors” in Part B of the prospectus for additional information.
Please see the Trust prospectus for more complete risk information.
Unit Investment Trusts are fixed, not actively managed and should be considered as part of a long-term strategy. Investors should consider their ability to invest in successive portfolios, if available, at the applicable sales charge. UITs are subject to annual fund operating expenses in addition to the sales charge. Investors should consult an attorney or tax advisor regarding tax consequences associated with an investment from one series to the next, if available, and with the purchase or sale of units. Guggenheim Funds Distributors, LLC does not offer tax advice.
Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objective, risks charges, expenses and the other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus (if available) click here or call 800.820.0888.
Guggenheim Investments represents the investment management business of Guggenheim Partners, LLC ("Guggenheim"), which includes Security Investors, LLC ("SI"), Guggenheim Funds Investments Advisors, LLC ("GFIA") and Guggenheim Partners Investment Management ("GPIM") the investment advisors to the referenced funds.
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