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Global Water Equities Portfolio Series 13


Investment Objective

The Global Water Equities Trust seeks to maximize total return through capital appreciation with a secondary objective of current income.

Principal Investment Strategy

Selection Criteria

Risks and Other Considerations

Portfolio Information

Deposit Information

Inception Date 7/2/2008
Non-Reoffered Date 8/20/2008
Mandatory Maturity Date 8/19/2010
Trust Structure RIC
Inception Unit Price $10.0000
Maturity Price (as of 8/19/10) $7.4293

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.

This information does not constitute an offer to sell or a solicitation of any offer to buy: nor shall there be any sale of these securities in any state where the offer, solicitation, or sale is not permitted.

Principal Investment Strategy

The trust consists of a portfolio of 40 securities of companies that the sponsor believes have a focus in at least one of the many categories that comprise the global water business. These categories include, but are not limited to, procurement, treatment, purification, filtration and distribution of water and wastewater treatment. The sponsor selects stocks for the trust from within the global water business that it believes have the potential to achieve the trust’s investment objective. At least 80% of the trust’s assets have a significant connection to the global water business in that the companies represented devote a portion of their operations to, or derive a material portion of their revenues from, water utilities, water treatment, water testing, water infrastructure and water resource management.

Selection Criteria

The sponsor selects global companies that it believes are core holdings of a well-diversified global water portfolio. To select the portfolio the sponsor begins by identifying a universe of approximately 100 companies that it believes have a significant focus (based on revenues and/or earnings) in the global water business. The sponsor then identifies approximately 35-45 companies that are diversified across the many global water categories and countries of origin for inclusion in the portfolio through a qualitative analysis based on factors that include, but are not limited to the following:

1) Valuation: The sponsor favors companies whose valuations appear to be attractive based on measures such as price-to-earnings, price-to-book and price-to-cash flow.

2) Industry Leadership: The sponsor favors companies that possess a strong competitive position among their domestic and global peers.

3) Growth: The sponsor favors companies with a history of (and prospects for) above average growth of sales, earnings and dividends (if applicable).

The portfolio consists of securities of companies that may devote a portion of their operations to, or derive a material portion of their revenues from, one of the following categories of the global water business:

Water Utilities: Water utilities are the regulated purveyors of water directly responsible for getting water supplies to residential, commercial and industrial users. Utilities may be public utilities or investor owned utilities.

Water Treatment: Treatment refers to the application of technologies and/or processes that alter the composition of water to achieve a beneficial objective in its uses. The most critical treatment objective pertains to the global need for healthy drinking water. Water treatment specifically refers to the process of converting source water to drinking water of sufficient quality to comply with applicable regulations, hereby ensuring the protection of human health, or to treat water in the optimization of an industrial process.

Water Testing: This category includes companies that provide services, manufacture instrumentation or develop techniques for the analysis, testing or monitoring of water and/or wastewater quality parameters.

Water Infrastructure/Distribution: This category includes companies that supply products that are used as component in the water infrastructure as it relates to the distribution of water.  These companies include, among others, pipe manufacturers, pump, valve and flow control manufacturers, storage tanks and those companies that apply a specific technology or process to pipe rehabilitation, repair or replacement.

Water Resource Management: This category includes companies that provide consulting, engineering and technical services in order to develop irrigation systems and other water resource management systems.

Conglomerates: The conglomerates category comprises those companies that contribute significantly to the water industry, yet are extensively diversified into other industries or markets such that the contribution of water-related activities is relatively small. These companies may not be conglomerates in the traditional sense, but may have instead sought to apply a particular platform technology, product-line or service capability across several global markets, including water.

Risks and Other Considerations

As with all investments, you can lose money by investing in this trust. The trust also might not perform as well as you expect. This can happen for reasons such as these:

  • Stock 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.
  • The sponsor does not actively manage the portfolio. The trust will generally hold, and may continue to buy, the same securities even though a security’s outlook, market value or yield may have changed.
  • The trust includes securities from the water utility sector. Adverse developments in this sector may significantly affect the value of your units. Companies involved in the water utility sector must contend with environmental considerations, taxes, government regulation, price and supply fluctuations, competition and water conservation.
  • The trust includes securities from the industrial sector. Adverse developments in this sector may significantly affect the value of your units. Companies involved in the industrial sector must contend with the state of the economy, intense competitors, domestic and international politics, excess capacity and spending trends.
  • The trust includes stocks issued by small-capitalization and mid-capitalization companies. These stocks customarily involve more investment risk than large-capitalization or more seasoned stocks. Small-capitalization and mid-capitalization companies may have limited product lines, markets or financial resources and may be vulnerable to adverse general market or economic developments.
  • The trust invests in foreign securities and American Depositary Receipts (“ADRs”). The trust’s investment in foreign stocks and ADRs 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 stocks will be more volatile than U.S. stocks 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 issued by companies headquartered in countries considered to be emerging markets. Risks of investing in developing or emerging countries include the possibility of investment and trading limitations, liquidity concerns, delays and disruptions in settlement transactions, political uncertainties and dependence on international trade and development assistance. Companies headquartered in emerging market countries may be exposed to greater volatility and market risk.
  • The trust may invest in companies that are considered to be passive foreign investment companies (“PFICs”). In general, PFICs are certain non-U.S. corporations that receive at least 75% of their annual gross income from passive sources (such as interest, dividends, certain rents and royalties or capital gains) or that hold at least 50% of their assets in investments producing such passive income. As a result of an investment in PFICs, the trust could be subject to U.S. federal income tax and additional interest charges on gains and certain distributions with respect to those equity interests, even if all the income or gain is distributed to its unitholders in a timely manner. The trust will not be able to pass through to its unitholders any credit or deduction for such taxes.
  • Inflation may lead to a decrease in the value of assets or income from investments.
  • Share prices or dividend rates on the securities may decline during the life of the trust. There is no guarantee 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.
  • 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.

Investing involves risk, including the possible loss of principal.

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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