The Undervalued Top Picks Portfolio, Series 11 ("Trust") seeks to provide capital appreciation.
|Wrap Fee Price||N/A|
|Remaining Deferred Sales Charge||$0.145000|
|Mandatory Maturity Date||2/23/2018|
|NASDAQ Ticker Symbol||CUVAKX|
|Inception Unit Price||$10.000000|
|Inception Bid Price||$9.900000|
|Inception Liquidation Price||$9.755000|
|Deferred Sales Charge Dates||
|Number of Holdings||40|
|Historical Annual Dividend Distribution||$0.155600|
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||17.17|
|Weighted Average Price/Book (P/B) Ratio||4.43|
|Weighted Average Market Cap (MM)||$15,750.33|
|US Common Stock||92.66%|
|Aerospace & Defense||4.80%|
|Air Freight & Logistics||5.63%|
|Commercial Services & Supplies||2.49%|
|Road & Rail||2.46%|
|Trading Companies & Distributors||2.70%|
|Mortgage Real Estate Investment Trusts (REITs)||4.78%|
|Thrifts & Mortgage Finance||4.87%|
|Diversified Consumer Services||2.75%|
|Hotels Restaurants & Leisure||3.05%|
|Textiles Apparel & Luxury Goods||2.48%|
|Electronic Equipment Instruments & Components||5.44%|
|Technology Hardware Storage & Peripherals||3.02%|
|Health Care Providers & Services||2.42%|
|Diversified Telecommunication Services||2.67%|
|Equity Real Estate Investment Trusts (REITs)||2.56%|
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 this strategy, the Trust is concentrated in the industrials sector and invests significantly in the consumer discretionary and financial sectors.
The Trust’s portfolio is constructed and the securities are selected approximately sixteen 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 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 consumer discretionary sector. As a result, the factors that impact the consumer discretionary sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. Consumer discretionary products are products purchased by consumers on a discretionary basis and are not necessities. The success of consumer discretionary companies, which manufacture products and provide discretionary services directly to the consumer, is tied closely to the performance of the overall domestic and international economy, interest rates, competition and consumer confidence. Success also depends heavily on disposable household income and consumer spending. Changes in demographics and consumer tastes can also affect the demand for, and success of, consumer discretionary products in the marketplace.
• 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 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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