The Global Growth Portfolio, Series 5 ("Trust") seeks to provide capital appreciation.
|Wrap Fee Price||N/A|
|Remaining Deferred Sales Charge||$0.163300|
|Mandatory Maturity Date||4/20/2018|
|NASDAQ Ticker Symbol||CGGPEX|
|Inception Unit Price||$10.000000|
|Inception Bid Price||$9.900000|
|Inception Liquidation Price||$9.655000|
|Deferred Sales Charge Dates||
|Number of Holdings||49|
|Historical Annual Dividend Distribution||$0.154600|
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||27.75|
|Weighted Average Price/Book (P/B) Ratio||7.05|
|Weighted Average Market Cap (MM)||$96,281.94|
|Non US Common Stock||77.63%|
|US Common Stock||22.37%|
|Commercial Services & Supplies||3.94%|
|Food & Staples Retailing||3.33%|
|Health Care Equipment & Supplies||3.65%|
|Health Care Providers & Services||2.59%|
|Semiconductors & Semiconductor Equipment||4.55%|
|Technology Hardware Storage & Peripherals||2.89%|
|Containers & Packaging||2.66%|
|Textiles Apparel & Luxury Goods||2.48%|
|Diversified Telecommunication Services||2.13%|
|Wireless Telecommunication Services||1.82%|
|Oil Gas & Consumable Fuels||2.08%|
|Real Estate Management & Development||1.46%|
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 at least 80% of the value of its assets in the common stock of companies that are located in regions that are expected to demonstrate accelerating growth in gross domestic product (“GDP”). The Sponsor believes that companies in these geographic regions may benefit from stronger macroeconomic growth trends. The Sponsor will target companies expected to generate above average growth. The Sponsor believes that companies that exhibit strong growth characteristics may demonstrate an ability to accelerate revenues, returns and profits.
The common stocks held by the Trust may include the common stocks of U.S. and non- U.S. companies. 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. As a result of this strategy, the Trust is concentrated in the consumer products sector and invests significantly in the health care sector.
The Trust’s portfolio is selected by the Sponsor using the methodology described below:
Regional groupings are defined by development status (e.g., developed or emerging) and geographic region. Geographic regions include: North America, Latin America (including Mexico), Asia/Pacific, Europe and Middle East & Africa as defined by Russell Investments. Regional exposures are over/underweighted based on projected regional GDP growth acceleration compared to projected World GDP aggregate growth estimates.
The Sponsor then excludes securities of companies with a market capitalization of less than $200 million USD and less than $0.6 million USD of daily trading volume.
The Sponsor then reduces and weights the universe by selecting companies, which may be primarily based on, but not limited to, the following factors:
• Projected Earnings Per Share Growth;
• Sales Growth;
• Asset Growth;
• Enterprise Value/Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA); and
• Dividend yield.
The Sponsor will select securities from each region for expected performance and risk.
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.
• The Trust invests in ADRs, New York Registry Shares, U.S.-listed foreign securities and foreign securities listed on a foreign exchange. The Trust’s investment in ADRs, New York Registry Shares, U.S.-listed foreign securities and foreign securities listed on a foreign exchange 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. registrar 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 invests significantly in the health care sector. As a result, the factors that impact the health care sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. General risks of companies in the health care sector include extensive competition, generic drug sales, the loss of patent protection, product liability litigation and increased government regulation.
• 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 “growth” stocks. Growth stocks are issued by companies which, based upon their higher than average price/book ratios, are expected to experience greater earnings growth rates relative to other companies in the same industry or the economy as a whole. Securities of growth companies may be more volatile than other stocks. If the perception of a company’s growth potential is not realized, the securities purchased may not perform as expected, reducing the Trust’s return. In addition, because different types of stocks tend to shift in and out of favor depending on market and economic conditions, “growth” stocks may perform differently from the market as a whole and other types of securities.
• The Trust invests in securities issued by small-capitalization and mid-capitalization companies. These securities customarily involve more investment risk than securities of large-capitalization companies. Small-capitalization 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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