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GNMA Portfolio Series 18


Investment Objective

The GNMA Portfolio, Series 18 ("Trust") seeks to provide current interest income and principal distributions.

Principal Investment Strategy

Selection Criteria

Risks and Other Considerations

Portfolio Information

Daily Data

Offer Price N/A
Wrap Fee Price N/A
Liquidation Price $4.06
Estimated Current Return (ECR) 2.46%
Estimated Long Term Return (ELTR) 0.13%
Estimated Current Return (Wrap Fee) 2.46%
Estimated Long Term Return (Wrap Fee) 0.13%
Accrued Interest $0.00
Principal Amount of Bonds* $3.59
Average Maturity 19.9 Years
Estimated Annual Income $0.0998


Monthly-Cash 40167J467
Monthly-Fee/Cash 40167J475


Deposit Information

Inception Date 7/21/2011
Non-Reoffered Date 11/20/2012
Ticker Symbol CGNMQX
Trust Structure RIC
Inception Unit Price $10.68
Inception Liquidation Price $10.26
Deferred Sales Charge Dates --

Estimated Annual Income per Unit does take into account the impact of the sale of bonds to pay for the deferred sales charge. Estimated Annual Income per Unit is computed by dividing the estimated annual income of the underlying bonds by the number of units outstanding. The amount may be lower or greater than the above-stated amount due to certain factors that may include, but are not limited to, the selling of bonds to pay for the deferred sales charge, a change in Trust expenses or the sale or maturity of securities in the portfolio. Fees and expenses of the Trust may vary as a result of a variety of factors including the Trust's size, redemption activity, brokerage and other transaction costs and extraordinary expenses.

* Represents the principal amount of the underlying bonds and any cash held in the Trust and does not take into account the impact of the sale of bonds to pay the deferred sales charge or any expenses of the Trust. Bonds will be sold to pay the deferred sales charges, to meet redemptions, to pay expenses and in other limited circumstances. The sale of bonds will affect the principal amount of bonds included in the Trust and the principal amount of bonds per unit. Units of the Trust, when redeemed or upon termination, may be worth more or less than their original cost and there can be no assurance that a unitholder will receive the principal amount of bonds at any particular point in time.

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 monthly distributions of interest income and principal by investing in a portfolio primarily consisting of fixed-rate mortgage-backed securities representing pools of mortgages on 1- to 4- family dwellings issued by the Government National Mortgage Association (known as “Ginnie Mae”). The Trust may also hold U.S. Treasury securities.

Mortgage-backed securities represent an ownership interest in mortgage loans made by banks and other financial institutions to finance purchases of homes. The individual mortgage loans are “pooled” together for sale to investors. As the underlying mortgage loans are paid off, investors receive principal and interest payments. Fixed-rate mortgage-backed securities pay a fixed rate of interest over the life of the loan.

The Sponsor generally considered the following factors, among others, in selecting the securities:

  • The types of Ginnie Mae securities available,
  • The prices and yields of the securities relative to other comparable securities, including the extent to which the securities were trading at a premium or discount from their principal value, and
  • The maturities of the securities.

Ginnie Mae was created in 1968 as a government-owned corporation within the United States Department of Housing and Urban Development. The securities in the portfolio are backed by the full faith and credit of the U.S. government, which means that Ginnie Mae guarantees that the principal and interest will be paid on the securities. However, Ginnie Mae does not guarantee price or yield on the securities. The units in the Trust are not guaranteed by Ginnie Mae or the U.S. government in any way.

Selection Criteria

Risks and Other Considerations

As with all investments, you may lose some or all of your investment in the Trust. 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. 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.
  • Due to the current state of the economy, the value of the securities held by the Trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers. Starting in December 2007, economic activity declined across all sectors of the economy, and the United States experienced increased unemployment. The economic crisis affected the global economy with European and Asian markets also suffering historic losses. Extraordinary steps have been taken by the governments of several leading countries to combat the economic crisis; however, the impact of these measures is not yet fully known and cannot be predicted. As of the Inception Date of the Trust, the United States government had not increased its statutory debt limit. If this statutory debt limit is not raised in a timely manner, the U.S. government may default on U.S. Treasury obligations and credit rating agencies will likely downgrade the bond rating of the government of the United States, which will negatively impact the value of the Trust.
  • The value of the securities will generally fall if interest rates, in general, rise. No one can predict whether interest rates will rise or fall in the future.
  • The market for mortgage-backed securities has become increasingly volatile due to the downturn in the housing and mortgage lending markets. This downturn has led to declines and volatility in the values of mortgage-backed securities as well as uncertainty in the financial sector and the overall economy.
  • The securities in the Trust, but not the units or the Trust, are guaranteed with respect to the timely payment of principal and interest by Ginnie Mae. Ginnie Mae securities are supported by the full faith and credit of the U.S. government. This guaranty does not apply to the market prices and yields of the securities, which will vary with changes in interest rates and other market conditions.
  • Because mortgage-backed securities represent an interest in mortgage loans made to finance purchases of homes, the Trust will receive scheduled principal payments each month during its life and it is also likely that the Trust will receive unscheduled prepayments of principal prior to a security’s scheduled maturity date. As a result, you might not be able to reinvest these principal payments and prepayments in other investments with the same return as the Trust. In addition, the Trust will not retain its present size and composition.
  • The Trust could terminate earlier than anticipated due to unscheduled principal prepayments on the underlying loans.
  • 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, rating, market value or yield may have changed.

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 following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management. Securities offered through Guggenheim Funds Distributors, LLC.

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