The S&P Global Dividend Aristocrats Select 25 Strategy Portfolio, Series 1 ("Trust") seeks attractive total return through capital appreciation and dividend income.
|Wrap Fee Price||$9.797300|
|Remaining Deferred Sales Charge||$0.145000|
|Mandatory Maturity Date||1/8/2018|
|NASDAQ Ticker Symbol||CGACAX|
|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||$0.345900|
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||26.18|
|Weighted Average Price/Book (P/B) Ratio||4.06|
|Weighted Average Market Cap (MM)||$59,485.02|
|Non US Common Stock||68.72%|
|US Common Stock||27.49%|
|Diversified Telecommunication Services||11.73%|
|Wireless Telecommunication Services||3.71%|
|Aerospace & Defense||4.46%|
|Oil Gas & Consumable Fuels||7.92%|
|Equity Real Estate Investment Trusts (REITs)||3.80%|
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 invests substantially all of the value of its assets in common stocks that are included in the S&P Global Dividend Aristocrats Index (the “Index”). The Index is comprised of companies within the S&P Global Broad Market Index (the “S&P Global BMI Index”) that have followed a managed dividends policy of increasing or stable dividends for at least 10 consecutive years. As of September 30, 2016, the Index included securities with market capitalization ranges from approximately $1.4 billion to $250 billion.
The common stocks held by the Trust may include the common stocks of U.S. and non-U.S. companies, including issuers located in emerging markets countries. As of the date of deposit, the Trust will invest at least 40% of its assets in the securities of non-U.S. companies located in at least three different countries, as defined by Russell Investments. The Trust will invest in securities of companies with small-, mid- and large market capitalization.
Utilizing a unique rule based strategy, the Trust invests in 25 common stocks in the Index selected by the Sponsor, with the assistance of Guggenheim Partners Investment Management, LLC (“GPIM”), an affiliate of Guggenheim Partners, LLC.
As a result of this strategy, the Trust invests significantly in the financial sector.
The Trust’s portfolio was constructed and the securities were selected six business days prior to the Trust’s initial date of deposit (the “Security Selection Date”) using the following security selection rules;
1. Initial Universe: Begin with the Index as of the Security Selection Date.
2. Define Sub-Universe: Reduce the initial universe of securities to a sub-universe by excluding securities per the following criteria;
• Exclude securities that are neither U.S.-listed securities nor American Depositary Receipts (“ADRs”);
• Exclude securities that have an average daily trading volume (using the most recent complete one month’s daily average as reported by S&P Compustat) of less than $1 million; and
• Exclude securities that are priced higher than $500 per share or lower than $5 per share.
3. Rank and screen on Fundamentals: Rank the remaining universe of securities from highest to lowest by the factors listed below. Each ranking is determined as of the Security Selection Date using the most recently reported information from S&P Compustat. Every company identified in the sub-universe is ranked highest to lowest for each of the following financial metrics:
• Dividend yield calculated as the total of all regular dividends paid over the prior twelve months divided by the company’s stock price as of the most recent month end. The highest 2% of companies, as ranked by dividend yield, are screened out.
• Return on assets calculated as the latest four quarters of reported income divided by the most recent reported total assets. The lowest 20% of companies, as ranked by return on assets, are screened out.
• One-year trading volume change calculated as the most recent month’s traded dollar value divided by the sum of the last twelve month’s traded dollar values. The lowest 3% of companies, as ranked by one-year trading volume change, are screened out.
If these screens result in fractional numbers of companies being selected for elimination from the universe, the resulting number of companies to be screened out are rounded up to the nearest whole number.
4. Selection: The remaining companies are then ranked by dividend yield, as defined above. The highest ranked stocks are selected for the portfolio in order of the highest rank to lowest. Select the top 25 securities and apply an equal weight to each security.
If any country or sector is weighted more than 36% of the portfolio, additional securities of that type will not be included in the Trust and the next highest yielding security will be selected.
Due to the fluctuating nature of security prices, the weighting of an individual security or sector in the Trust portfolio may change after the Security Selection Date. The portfolio is not managed and will not be rebalanced to track changes in the Index.
INDEX DEFINITION: The S&P Global Dividend Aristocrats Index is designed to measure the performance of the highest dividend yielding companies within the S&P Global Broad Market Index that have followed a policy of increasing or stable dividends for at least 10 consecutive years. Constituents must have a fl oat-adjusted market cap of at least USD 1 billion as of the rebalancing reference date. The Index is 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.
• Securities selected according to this strategy may not perform as intended. The Trust is exposed to additional risk due to its policy of investing in accordance with an investment strategy. Although the Trust’s investment strategy is designed to achieve the Trust’s investment objective, the strategy may not prove to be successful. The investment decisions may not produce the intended results and there is no guarantee that the investment objective will be achieved.
• The Trust invests significantly in the financial sector. As a result, the factors that impact the financial sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. Companies in the financial sector include banks, insurance companies and investment firms. The profitability of companies in the financial sector is largely dependent upon the availability and cost of capital which may fluctuate significantly in response to changes in interest rates and general economic developments. Financial sector companies are especially subject to the adverse effects of economic recession, decreases in the availability of capital, volatile interest rates, portfolio concentrations in geographic markets and in commercial and residential real estate loans, and competition from new entrants in their fields of business.
• The Trust invests in ADRs and U.S.- listed foreign securities. The Trust’s investment in ADRs and U.S.-listed foreign securities presents additional risk. ADRs are issued by a bank or Trust company to evidence ownership of underlying securities issued by foreign corporations. 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 is concentrated in securities issued by Canadian companies. Canada is a major producer of forest products, metals, agricultural products and energy-related products, such as oil, gas and hydroelectricity. The Canadian economy is dependent on the demand for, and supply and price of, natural resources, and the Canadian market is relatively concentrated in issuers involved in the production and distribution of natural resources. A small number of sectors, including the materials sector, represent a large portion of the Canadian market.
• 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.
Additionally, the effect of the June 2016 United Kingdom referendum to leave the European Union (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 small- and mid-capitalization companies. These securities customarily involve more investment risk than securities of large-capitalization companies. Small- and mid-capitalization companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments.
• 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.
• 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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