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European Capital Strength Portfolio Series 20

Trust Resources
Fact Card
Prospectus
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Investment Objective

The European Capital Strength Portfolio, Series 20 ("Trust") seeks to provide total return through capital appreciation.

Principal Investment Strategy

Selection Criteria

Risks and Other Considerations

Portfolio Information

Daily Data

Offer Price $10.7373
Wrap Fee Price $10.4920
Liquidation Price $10.4920
Remaining Deferred Sales Charge $0.2250

CUSIPs

Monthly-Cash 40176A465
Monthly-Reinvest 40176A473
Monthly-Fee/Cash 40176A481
Monthly-Fee/Reinvest 40176A499

 

Deposit Information

Inception Date 5/18/2020
Non-Reoffered Date 11/16/2020
Mandatory Maturity Date 5/18/2022
NASDAQ Ticker Symbol CECPTX
Trust Structure RIC
Inception Unit Price $10.0000
Inception Liquidation Price $9.7750
Deferred Sales Charge Dates Dec 2020
Jan 2021
Feb 2021
Term 2 Years
Number of Holdings 29

Historical Annual Dividend Distribution*

Per Unit $0.0950
Rate 0.88%
Rate Fee Based 0.91%

* The Historical Annual Dividend Distribution (HADD) per unit is as of the day prior to trust deposit and subject to change. The HADD per unit is the weighted average of the trailing twelve-month distributions paid by the securities included in the portfolio. The HADD rate is based on the HADD divided by the current offer price and recalculated daily. Both the HADD per unit and the rate shown are reduced to account for the effects of fees and expenses, which will be incurred when investing in the Trust. The HADD per unit and rate will vary due to certain factors that may include, but are not limited to, a change in the dividends paid by issuers, a change in Trust expenses or the sale or maturity of securities in the portfolio. There is no guarantee the issuers of the securities included in the Trust will declare dividends or distributions in the future. The HADD of the securities included in the Trust is for illustrative purposes only and is not indicative of the Trust’s distribution. Due to the negative economic impact across many industries caused by the recent COVID-19 outbreak, certain issuers of the securities included in the trust may elect to reduce the amount of, or cancel entirely, dividends and/or distributions paid in the future. As a result, the HADD figure will likely be higher, and in some cases significantly higher, than the actual distribution rate achieved by the trust.


Portfolio Holdings Analysis

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.

Fundamental Data

Weighted Average Price/Earnings (P/E) Ratio 28.50
Weighted Average Price/Book (P/B) Ratio 5.54
Weighted Average Market Cap (MM) $46,140.51

Market Cap & Style Breakdown

Value Growth Total
Large-Cap 31.96% 54.79% 86.75%
Mid-Cap 4.86% 8.40% 13.25%
Small-Cap -- -- --
Total 36.81% 63.19% 100.00%

Asset Class

Non US Common Stock 100.00%
Total 100.00%

Market Cap Breakdown

Style Breakdown

Sector & Industry Breakdown

Industrials 24.65%
 Aerospace & Defense 2.68%
 Construction & Engineering 3.08%
 Electrical Equipment 5.25%
 Machinery 7.60%
 Professional Services 6.04%
Information Technology 17.66%
 Electronic Equipment Instruments & Components 4.53%
 Semiconductors & Semiconductor Equipment 8.50%
 Technology Hardware Storage & Peripherals 4.64%
Health Care 14.44%
 Health Care Equipment & Supplies 6.53%
 Pharmaceuticals 7.91%
Consumer Staples 10.09%
 Beverages 2.89%
 Household Products 3.65%
 Personal Products 3.55%
Consumer Discretionary 9.76%
 Auto Components 3.47%
 Specialty Retail 3.12%
 Textiles Apparel & Luxury Goods 3.17%
Materials 7.42%
 Metals & Mining 7.42%
Communication Services 6.01%
 Diversified Telecommunication Services 6.01%
Real Estate 3.54%
 Real Estate Management & Development 3.54%
Utilities 3.36%
 Gas Utilities 3.36%
Financials 3.08%
 Banks 3.08%
Total 100.00%

Country Breakdown

United Kingdom 21.65%
Switzerland 13.66%
Sweden 12.13%
Germany 11.85%
Denmark 10.62%
France 7.30%
Netherlands 6.89%
Spain 6.20%
Italy 3.36%
Norway 3.27%
Belgium 3.08%
Total 100.00%

Regional Breakdown

West Europe 100.00%
Total 100.00%

Developed Status

N/A 100.00%
Total 100.00%

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 stocks of European companies. The Trust invests in a portfolio of European companies that the Sponsor believes have had strong valuations, returns on capital and balance sheets. To determine whether a company has an attractive valuation, the Sponsor compares valuation metrics against the selected company’s peer group. Strong returns on capital are evidenced by the company’s return on capital compared to the selected company’s peer group. Companies with strong balance sheets are typically those entities that are less levered than their peers. The Trust's investment process is designed to favor strong cash flow generating companies that trade at reasonable multiples of their excess profits. However, their can be no assurance that the Trust's investment strategy will identify companies that will perform well in the future. As a result of this strategy, the Trust invests significantly in the consumer products sector and industrials sector.

Selection Criteria

The Trust’s portfolio is constructed by the Sponsor using the methodology described below:

  • Begin with the largest 30% of companies headquartered in developed Western European countries.
  • Focus on companies which have demonstrated several years of consistently higher return on equity, and which have debt leverage levels lower than the market or their industry peers.
  • Filter out “value traps,” which are those companies with the worst fundamentals in their sector, as determined by the Sponsor, or with steep market declines that imply a turn in fundamentals.
  • Select a portfolio of securities from the remaining universe by favoring companies undervalued, as determined by the Sponsor, based on cash flow & earnings, while maintaining diversification with limits on sector and country concentration.

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. Changes in legal, political, regulatory, tax and economic conditions may cause fluctuations in markets and securities prices, which could negatively impact the value of the Trust. Additionally, event such war, terrorism, natural and environmental disasters and the spread of infectious illnesses or other public health emergencies may adversely affect the economy, various markets and issuers. Recently, the outbreak of a novel and highly contagious form of coronavirus (“COVID-19”) has adversely impacted global commercial activity and contributed to significant volatility in certain markets. Many governments and businesses have instituted quarantines and closures, which has resulted in significant disruption in manufacturing, supply chains, consumer demand and economic activity. The potential impacts are increasingly uncertain, difficult to assess and impossible to predict, and may result in significant losses. Any adverse event could materially and negatively impact the value and performance of Trust and the Trust’s ability to achieve its investment objectives. 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.
  • 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.
  • The Trust invests significantly in the consumer products sector. As a result, the factors that impact the consumer products sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. General risks of companies in the consumer products sector include cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, product liability litigation and increased government regulation. A weak economy and its effect on consumer spending would adversely affect companies in the consumer products sector.
  • The Trust invests significantly 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 in foreign securities listed on a foreign exchange, a U.S.-listed foreign security, American Depositary Receipts (“ADRs”) and New York Registry Shares. The Trust’s investment in foreign securities listed on a foreign exchange, a U.S.-listed foreign security, ADRs and New York Registry Shares presents additional risk. ADRs are issued by a bank or Trust company to evidence ownership of underlying securities issued by foreign corporations. New York Registry Shares are created by a U.S. registrar so that securities of companies incorporated in the Netherlands may be traded on a U.S. exchange. Securities of foreign issuers present risks beyond those of domestic securities. More specifically, foreign risk is the risk that foreign securities will be more volatile than U.S. securities 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 whose value may be dependent on currency exchange rates. The U.S. dollar value of these securities may vary with fluctuations in foreign exchange rates. Most foreign currencies have fluctuated widely in value against the U.S. dollar for various economic and political reasons such as the activity level of large international commercial banks, various central banks, speculators, hedge funds and other buyers and sellers of foreign currencies.
  • The Trust is concentrated in securities issued by European companies. As a result, political, economic or social developments in Europe may have a significant impact on the securities included in the Trust. Furthermore, the European sovereign debt crisis and the related austerity measures in certain countries have had, and continue to have, a significant negative impact on the economies of certain European countries and their future economic outlooks.

    Additionally, on January 31, 2020, the United Kingdom formally withdrew from the European Union (referred to as “Brexit”) and a transition period commenced during which most European Union law will continue to apply in the United Kingdom while it negotiates its future relationship with the European Union. Brexit has resulted in volatility in European and global markets and could have negative long-term impacts on financial markets in the United Kingdom and throughout Europe. There is considerable uncertainty about the potential consequences of Brexit, how negotiations of trade agreements will proceed, and how the financial markets will react. As this process unfolds, markets may be further disrupted. Given the size and importance of the United Kingdom’s economy, uncertainty about its legal, political and economic relationship with the remaining member states of the European Union may continue to be a source of instability.
  • The Trust invests in securities issued by mid-capitalization companies. These securities customarily involve more investment risk than securities of large-capitalization companies. Mid-capitalization companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments.
  • The Trust may be susceptible to potential risks through breaches in cybersecurity. A breach in cybersecurity refers to both intentional and unintentional events that may cause the Trust to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Sponsor of the Trust to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. In addition, cybersecurity breaches of the Trust’s third-party service providers, or issuers in which the Trust invests, can also subject the Trust to many of the same risks associated with direct cybersecurity breaches.
  • The Trust is subject to risks arising from various operational factors and their service providers. Operational factors include, but not limited to, human error, processing and communication errors, errors of the Trust’s service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Additionally, the Trust may be subject to the risk that a service provider may not be willing or able to perform their duties as required or contemplated by their agreements with the Trust. Although the Trust seeks to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks.
  • 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.

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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