The Guggenheim European Capital Strength Portfolio, Series 11 ("Trust") seeks to provide total return through capital appreciation.
|Wrap Fee Price||$9.262800|
|Remaining Deferred Sales Charge||$0.245000|
|Mandatory Maturity Date||8/17/2018|
|NASDAQ Ticker Symbol||CECPKX|
|Inception Unit Price||$10.000000|
|Inception Bid Price||$9.900000|
|Inception Liquidation Price||$9.655000|
|Deferred Sales Charge Dates||
|Number of Holdings||30|
|Historical Annual Dividend Distribution||$0.108500|
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||22.37|
|Weighted Average Price/Book (P/B) Ratio||5.59|
|Weighted Average Market Cap (MM)||$52,186.52|
|Non US Common Stock||100.00%|
|Hotels Restaurants & Leisure||3.29%|
|Textiles Apparel & Luxury Goods||7.12%|
|Aerospace & Defense||3.49%|
|Food & Staples Retailing||3.26%|
|Electronic Equipment Instruments & Components||3.65%|
|Semiconductors & Semiconductor Equipment||3.24%|
|Health Care Equipment & Supplies||3.26%|
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 common stocks of European companies. The Trust invests in a portfolio of European companies that the Sponsor believes have had strong valuations, returns on capital and balance sheets. To determine whether a company has an attractive valuation, the Sponsor compares valuation metrics against the selected company’s peer group. Strong returns on capital are evidenced by the company’s return on capital compared to the selected company’s peer group. Companies with strong balance sheets are typically those entities that are less levered than their peers. The Trust's investment process is designed to favor strong cash flow generating companies that trade at reasonable multiples of their excess profits. However, there can be no assurance that the Trust's investment strategy will identify companies that will perform well in the future. As a result of this strategy, the Trust is concentrated in the consumer products sector and in securities issued by companies located in the United Kingdom.
The Trust’s portfolio is constructed by the Sponsor using the methodology described below:
• Begin with the largest 30% of companies headquartered in developed Western European countries.
• Focus on companies which have demonstrated several years of consistently higher return on equity, and which have debt leverage levels lower than the market or their industry peers.
• Filter out “value traps,” which are those companies with the worst fundamentals in their sector, as determined by the Sponsor, or with steep market declines that imply a turn in fundamentals.
• Select a portfolio of securities from the remaining universe by favoring companies undervalued, as determined by the Sponsor, based on cash flow & earnings, while maintaining diversification with limits on sector and country concentration.
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 is concentrated 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.
• The Trust invests in foreign securities listed on a foreign exchange, American Depositary Receipts (“ADRs”) and a New York Registry Share. The Trust’s investment in foreign securities listed on a foreign exchange, a New York Registry Share and ADRs presents additional risk. ADRs are issued by a bank or Trust company to evidence ownership of underlying securities issued by foreign corporations. New York Registry Shares are created by a U.S. register so that securities of companies incorporated in the Netherlands may be traded on a U.S. exchange. Securities of foreign issuers present risks beyond those of domestic securities. More specifically, foreign risk is the risk that foreign securities will be more volatile than U.S. securities due to such factors as adverse economic, currency, political, social or regulatory developments in a country, including government seizure of assets, excessive taxation, limitations on the use or transfer of assets, the lack of liquidity or regulatory controls with respect to certain industries or differing legal and/or accounting standards.
• The Trust includes securities whose value may be dependent on currency exchange rates. The U.S. dollar value of these securities may vary with fluctuations in foreign exchange rates. Most foreign currencies have fluctuated widely in value against the U.S. dollar for various economic and political reasons such as the activity level of large international commercial banks, various central banks, speculators, hedge funds and other buyers and sellers of foreign currencies.
• The Trust is concentrated in securities issued by European companies. As a result, political, economic or social developments in Europe may have a significant impact on the securities included in the Trust. Furthermore, the European sovereign debt crisis and the related austerity measures in certain countries have had, and continue to have, a significant negative impact on the economies of certain European countries and their future economic outlooks.
• The Trust is concentrated in securities issued by companies headquartered in the United Kingdom. As a result, political, economic or social developments in the United Kingdom may have a significant impact on the securities included in the Trust.
Additionally, the effect of the June 2016 United Kingdom referendum to leave the EU is still developing. The referendum has resulted in depreciation in the value of the British pound, short term declines in the stock markets and ongoing economic and political uncertainty. The United Kingdom’s withdrawal from the EU may take an extended period, and there is considerable uncertainty about the potential trade, economic and market consequences of the exit.
• The Trust invests in securities issued by mid-capitalization companies. These securities customarily involve more investment risk than securities of large-capitalization companies. Mid-capitalization companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments.
• 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 “Risk Factors” in Part B of the prospectus and “Investment Risks” in Part A 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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