The Convertible & Income Portfolio of Funds, Series 27 (the “Trust”) seeks to provide current income
and the potential for capital appreciation.
|Wrap Fee Price||$9.5852|
|Remaining Deferred Sales Charge||$0.2250|
|Mandatory Maturity Date||10/7/2019|
|NASDAQ Ticker Symbol||CECIBX|
|Inception Unit Price||$10.0000|
|Inception Bid Price||$10.0000|
|Inception Liquidation Price||$9.7750|
|Deferred Sales Charge Dates||
|Number of Holdings||14|
|Historical Annual Dividend Distribution||$0.7228|
|Trust Weighted Average||-4.50%|
|Closed-End Fund ("CEF") Universe Average||-6.08%|
* Closed-end funds may trade at a premium or discount to their net asset value (“NAV”). The Premium/Discount shown is for the underlying securities held by the closed-end funds in the UIT. This is the weighted average of all the CEFs in portfolio.
|US Hybrid (Growth & Income)||14.91%|
|Global Hybrid (Growth & Income)||6.74%|
|Weighted Average Leverage Ratio**||16.61%|
** The Total value of the fund’s outstanding leverage presented as a percentage of total assets.
Example: Percentage of Total Assets represented by leverage.(e.g., Total Assets = $200M; Net Assets = $160M; Leverage = $40M. Leverage = 20%, calculated by dividing $40M by $200M.)
Premium/Discount and Holdings Analysis data is provided by Morningstar Traded Fund Center. Data is subject to change on a nightly basis. The data is for the underlying securities held by the closed-end funds in the UIT. 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.
The Closed-End Fund (“CEF”) Universe is comprised of all CEFs currently listed on U.S. exchanges.
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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 will invest at least 80% of the value of its assets in common shares of closed-end investment companies (“Closed-End Funds”) that invest substantially all of their assets in convertible securities and/or income-producing securities and shares of an exchange-traded fund (“ETF”) that invests substantially all of its assets in convertible securities.
The Closed-End Funds and ETF included in the Trust’s portfolio invest in a wide range of convertible securities, income-producing equity securities of any market capitalization and debt securities. The convertible securities and debt securities may be rated below-investment grade through investment grade. High-yield, below-investment grade securities or “junk” bonds are considered to be speculative and are subject to greater market and credit risks than investment-grade securities.
The Closed-End Funds and ETF included in the Trust’s portfolio invest in convertible securities and debt securities, which may include senior loans and debt securities with short-term, medium-term and long-term maturities. Typically, fixed-income securities with longer periods before maturity are more sensitive to interest rate changes. The Sponsor will also consider the duration of the securities held by the Closed-End Funds included in the Trust’s portfolio. The duration of a bond is a measure of its price sensitivity to changes in interest rates based on the weighted average term to maturity of its interest and principal cash flows.
In addition, certain of the Closed-End Funds and the ETF may invest in foreign securities, including securities issued by companies located in emerging markets.
Guggenheim Funds, through proprietary research and strategic alliances, will strive to select Closed-End Funds and an ETF featuring the potential for current income, diversification and overall liquidity.
The Sponsor has selected for the portfolio Closed-End Funds and an ETF believed to have the best potential to achieve the Trust’s investment objective.
As of the Trust’s initial date of deposit (the “Inception Date”), 100% of the Trust’s portfolio is invested in a combination of shares of Closed-End Funds that invest substantially all of their assets in convertible securities and/or income-producing securities, including but not limited to high-yield securities or “junk” bonds, and an ETF that invests substantially all of its assets in convertible securities.
When selecting Closed-End Funds for inclusion in this portfolio the Sponsor looks at numerous factors. These factors include, but are not limited to:
The Sponsor will seek to select an ETF for inclusion in the Trust portfolio that invests substantially all of its assets in convertible securities. When selecting the ETF the Sponsor looks at numerous factors. These factors include, but are not limited to: maturity and liquidity. As of the Inception Date, the ETF comprised approximately 20% of the Trust’s portfolio.
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:
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.
© 2018 Guggenheim Investments. All Rights Reserved.
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