The Global Water Equities Portfolio, Series 32 ("Trust") seeks to maximize total return through capital appreciation with a secondary objective of current income.
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 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 securities 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. 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 common stocks held by the Trust may include the common stocks of U.S. and non-U.S. companies. The Trust may invest in companies of any market capitalization. As a result of this strategy, the Trust is concentrated in the water utilities sector and the industrials sector and in securities issued by companies located in Europe.
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 companies that it believes have a significant focus (based on revenues and/or earnings) in the global water business. The initial universe is defined through research of companies identified in various research reports, websites, company filings and financial databases as connected to the global water business. The Sponsor then identifies companies that are diversified across the many categories and countries of origin that comprise the global water business for inclusion in the portfolio through a qualitative analysis, which may be primarily based on, but not limited to, the following factors:
• Revenue Concentration: The Sponsor favors companies that derive a significant portion of their revenues or profits from the global water businesses.
• Investable Characteristics: The Sponsor screens companies for characteristics including trading volume, share price, market capitalization and trading exchange in order to eliminate those companies that are not viable candidates for inclusion in the portfolio.
Under certain circumstances the Sponsor may limit the number of securities in the final portfolio based upon certain fundamental factors including, but not limited to, the following:
• Industry Leadership: The Sponsor favors companies that possess a strong competitive position among their domestic and global peers.
• Growth: The Sponsor favors companies with a history of (and prospects for) better than average growth of sales and earnings (where applicable).
The portfolio primarily consists of securities of companies that 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, thereby 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 a 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 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.
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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