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Undervalued Top Picks Portfolio Series 10

Trust Resources
Prospectus
secondary

Investment Objective

The Undervalued Top Picks Portfolio, Series 10 ("Trust") seeks to provide capital appreciation.

Principal Investment Strategy

Selection Criteria

Risks and Other Considerations

Portfolio Information

Daily Data

Offer Price N/A
Wrap Fee Price N/A
Bid Price $11.157200
Liquidation Price $11.012200
Remaining Deferred Sales Charge $0.145000

CUSIPs

Monthly-Cash 40171H689
Monthly-Reinvest 40171H697
Monthly-Fee/Cash 40171H705
Monthly-Fee/Reinvest 40171H713

 

Deposit Information

Inception Date 8/22/2016
Non-Reoffered Date 11/22/2016
Mandatory Maturity Date 11/22/2017
NASDAQ Ticker Symbol CUVAJX
Trust Structure GRANTOR
Inception Unit Price $10.000000
Inception Bid Price $9.900000
Inception Liquidation Price $9.755000
Deferred Sales Charge Dates Dec 2016
Jan 2017
Feb 2017
Term 15 Months
Number of Holdings 40
Historical Annual Dividend Distribution $0.128600

Portfolio Holdings Analysis

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.

Fundamental Data

Weighted Average Price/Earnings (P/E) Ratio 27.29
Weighted Average Price/Book (P/B) Ratio 6.41
Weighted Average Market Cap (MM) $16,766.79

Market Cap & Style Breakdown

Value Growth Total
Large-Cap 7.22% 10.68% 17.89%
Mid-Cap 9.12% 9.12% 18.24%
Small-Cap 42.31% 21.56% 63.87%
Total 58.64% 41.36% 100.00%

Asset Class

US Common Stock 93.03%
REIT 6.97%
Total 100.00%

Market Cap Breakdown

Style Breakdown

Sector & Industry Breakdown

Financials 23.52%
 Banks 11.82%
 Capital Markets 4.50%
 Insurance 4.70%
 Thrifts & Mortgage Finance 2.51%
Industrials 20.96%
 Aerospace & Defense 2.61%
 Air Freight & Logistics 4.77%
 Airlines 6.09%
 Commercial Services & Supplies 5.00%
 Machinery 2.49%
Information Technology 20.88%
 Communications Equipment 5.92%
 Electronic Equipment Instruments & Components 3.14%
 Semiconductors & Semiconductor Equipment 2.47%
 Software 4.71%
 Technology Hardware Storage & Peripherals 4.64%
Health Care 8.99%
 Biotechnology 2.57%
 Health Care Equipment & Supplies 2.49%
 Health Care Technology 1.91%
 Life Sciences Tools & Services 2.01%
Materials 7.39%
 Chemicals 5.06%
 Metals & Mining 2.33%
Real Estate 6.97%
 Equity Real Estate Investment Trusts (REITs) 6.97%
Consumer Discretionary 4.89%
 Auto Components 2.55%
 Automobiles 2.34%
Utilities 2.43%
 Gas Utilities 2.43%
Consumer Staples 2.10%
 Beverages 2.10%
Energy 1.89%
 Oil Gas & Consumable Fuels 1.89%
Total 100.00%

Country Breakdown

United States 100.00%
Total 100.00%

Regional Breakdown

North America 100.00%
Total 100.00%

Developed Status

Developed 100.00%
Total 100.00%

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

The Trust seeks to provide a portfolio of securities that the Sponsor believes are undervalued by the market and have the potential for increased profitability. However, there can be no assurance that any security held by the Trust will meet the Trust’s objective.

The Trust may hold U.S.-listed common stocks of companies of all market capitalizations. The U.S.-listed common stocks held by the Trust may include the common stocks of U.S. and non- U.S. companies. As a result of the strategy, the Trust is concentrated in the financial sector and invests significantly in the industrials and information technology sectors.

Selection Criteria

The Trust’s portfolio is constructed and the securities are selected approximately fifteen business days prior to the initial date of deposit (the “Inception Date”) using the methodology described below.

In constructing the Trust portfolio, securities will be selected based on the following fundamentally-based quantitative criteria:

• Begin with all companies listed in the Russell 3000 Index.

• Exclude the smallest 1000 companies as measured by market capitalization.

• Exclude companies with a price per share of less than $5 and more than $500.

• Exclude companies with a 30-day average daily traded value of less than $1 million.

• Rank companies according to Guggenheim’s Compass Valuation Model, which is a proprietary process that evaluates companies based on a company’s profitability trend relative to its market valuation trend.

• Select the top companies as identified by the Compass Valuation Model, subject to a sector limitation of +/- 15% of the sector weightings of the Russell 3000 Index.

• Equally weight each selected security within the portfolio as of the security selection date. Please note that due to the fluctuating nature of security prices, the weighting of an individual security in the Trust portfolio may change after the security selection date.

Compass Valuation Model

The Compass Valuation Model is a proprietary process that evaluates companies based on a company’s profitability trend relative to its trend in market valuation. The Compass Valuation Model generates a measure derived from many discrete factors that are used to determine the trajectory of a company’s return on invested capital (ROIC) relative to the company’s market valuation trend. Stocks that demonstrate a strong, relatively uninterrupted improvement in their ROIC, but remain undervalued by the marketplace, result in higher model scores and are selected for the portfolio.

INDEX DEFINITION: The Russell 3000 Index is composed of the 3,000 largest U.S. companies ranked by total market capitalization, representing approximately 98% of the U.S. investable equity market. 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.

• The Trust is concentrated 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. Negative developments initially relating to the subprime mortgage market and subsequently spreading to other parts of the economy, have adversely affected credit and capital markets worldwide and significantly impacted financial sector companies.

• The Trust invests significantly in the industrials sector. As a result, the factors that impact the industrials sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. Adverse developments in this sector may significantly affect the value of your units. Companies involved in the industrials sector must contend with the state of the economy, intense competitors, domestic and international politics, excess capacity and spending trends.

• The Trust invests significantly in the information technology sector. As a result, the factors that impact the information technology sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. Companies involved in this sector must contend with rapid changes in technology, intense competition, government regulation and the rapid obsolescence of products and services. Furthermore, sector predictions may not materialize and the companies selected for the Trust may not represent the entire sector and may not participate in the overall sector growth.

• 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.

© 2016 Guggenheim Investments. All Rights Reserved.

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