The Global Balanced Income Builder Portfolio, Series 11 ("Trust") seeks current income as the primary objective, with the potential for capital appreciation as a secondary objective.
|Wrap Fee Price||$9.4762|
|Remaining Deferred Sales Charge||$0.2250|
|Mandatory Maturity Date||1/27/2020|
|NASDAQ Ticker Symbol||CGBLKX|
|Inception Unit Price||$10.0000|
|Inception Bid Price||$10.0000|
|Inception Liquidation Price||$9.7750|
|Deferred Sales Charge Dates||
|Number of Holdings||75|
|Historical Annual Dividend Distribution||$0.4101|
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.
|Exchange Traded Fund||50.99%|
|Weighted Average Price/Earnings (P/E) Ratio||27.86|
|Weighted Average Price/Book (P/B) Ratio||5.56|
|Weighted Average Market Cap (MM)||$72,405.89|
|Non US Common Stock||24.56%|
|US Common Stock||23.68%|
|Aerospace & Defense||1.86%|
|Commercial Services & Supplies||0.82%|
|Road & Rail||1.67%|
|Diversified Telecommunication Services||3.34%|
|Wireless Telecommunication Services||3.31%|
|Oil Gas & Consumable Fuels||5.48%|
|Independent Power and Renewable Electricity Producers||0.78%|
|Food & Staples Retailing||0.70%|
|Semiconductors & Semiconductor Equipment||1.62%|
|Technology Hardware Storage & Peripherals||0.82%|
|Hotels Restaurants & Leisure||0.78%|
|Metals & Mining||1.82%|
|Equity Real Estate Investment Trusts (REITs)||0.77%|
|High Yield Muni||5.11%|
|High Yield Bond||5.10%|
|Emerging Markets Bond||5.03%|
|Emerging-Markets Local-Currency Bond||3.83%|
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 exchange traded funds in the UIT. The total percentages may not be equal to 100% due to rounding.
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 current income with the potential for capital appreciation by investing in dividend-paying stocks of global companies along with shares of exchange-traded funds (“ETFs”) that invest substantially all of their assets in fixed-income securities.
The Sponsor, with the assistance of Guggenheim Partners Investment Management, LLC (“GPIM”), an affiliate of Guggenheim Partners, LLC, has selected the securities to be included in the Trust’s portfolio. The Trust portfolio will invest a substantial amount of its assets, either directly or indirectly through its investment in ETFs, in securities from at least three different countries, as defined by Russell Investments. The Trust will, as of the initial date of deposit, invest at least 40% of its assets directly or indirectly in the securities of non-U.S. companies located in at least three different countries, as defined by Russell Investments.
The Sponsor and GPIM believe that companies that distribute significant dividends on a consistent basis generally demonstrate strong financial strength and positive performance relative to their peers. The common stocks selected will constitute approximately 50% of the Trust portfolio.
Shares of ETFs that invest substantially all of their assets in fixed-income securities will make up the remaining 50% of the Trust portfolio. The fixed-income ETFs included in the portfolio invest in a wide range of both domestic and international debt securities rated investment-grade through below 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 fixed-income ETFs included in the portfolio will invest in 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.
Finally, the fixed-income ETFs included in the portfolio will invest in debt securities issued by foreign companies, including companies located in emerging markets, and municipal bonds.
United States Equity Strategy
Approximately 25% of the Trust portfolio will constitute U.S. equity common stocks selected using a disciplined process that includes both quantitative screening and qualitative analysis. These common stocks may be issued by small-, mid- and large-capitalization companies and by real estate investment Trusts. The Sponsor selects U.S. companies that it believes should be core holdings of a diversified dividend-paying portfolio. The Sponsor begins with a universe of all dividend paying companies in the United States as of the date of the security selection. The Sponsor then selects the final portfolio by performing quantitative and qualitative screening, which is primarily based on, but not limited to dividend growth, dividend coverage and profitability.
International Equity Strategy
Approximately 25% of the Trust portfolio will constitute common stocks selected according to a quantitative dividend strategy. These stocks will be dividend paying American Depositary Receipt (“ADR”)/Global Depositary Receipt (“GDR”)/New York Registry Share equity securities or U.S.-listed common stocks of foreign companies representing both developed and emerging markets. The common stocks may be issued by small-, mid- and large-capitalization companies.
Fixed-Income Exchange-Traded Funds
Approximately 50% of the Trust portfolio will constitute ETFs that invest substantially all of their assets in both domestic and international fixed-income securities. The Sponsor, with the assistance of GPIM, has selected fixed-income ETFs believed to have the best potential for current income. When selecting the ETFs for the Trust, the Sponsor considers a number of factors, including but not limited to, the size, liquidity and daily trading volume, the current dividend yield, the strategy and investment objective, the fixed-income securities held by the ETF, the expense ratio and the overlap of the underlying fixed-income securities held by the ETFs.
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.
• The Trust invests in shares of ETFs. ETFs are investment pools that hold other securities. The ETFs in the Trust are usually passively-managed index funds that seek to replicate the performance or composition of a recognized securities index. ETFs are subject to various risks, including management’s ability to meet the fund’s investment objective. Shares of ETFs may trade at a discount from their net asset value in the secondary market. This risk is separate and distinct from the risk that the net asset value of the ETF shares may decrease. The amount of such discount from net asset value is subject to change from time to time in response to various factors. The underlying ETF has management and operating expenses. Consequently, you will bear not only your share of your Trust’s expenses, but also the expenses of the underlying ETFs. By investing in ETFs, the Trust incurs greater expenses than you would incur if you invested directly in the ETFs.
• The ETFs are subject to annual fees and expenses, including a management fee. Unitholders of the Trust will bear these fees in addition to the fees and expenses of the Trust. See “Fees and Expenses” for additional information.
• The Trust is subject to an ETF’s index correlation risk. To the extent that an underlying ETF is an index-tracking ETF, index correlation risk is the risk that the performance of an ETF will vary from the actual performance of the fund’s target index, known as “tracking error.” This can happen due to fund expenses, transaction costs, market impact, corporate actions (such as mergers and spin-offs) and timing variances.
• The value of the fixed-income securities ETFs will generally fall if interest rates, in general, rise. Typically, fixed-income securities with longer periods before maturity are more sensitive to interest rate changes. The Trust may be subject to greater risk of rising interest rates than would normally be the case due to the current period of historically low rates.
• An ETF or an issuer of securities held by an ETF may be unwilling or unable to make principal payments and/or to declare distributions in the future, may call a security before its stated maturity, or may reduce the level of distributions declared. Issuers may suspend dividends during the life of the Trust. This may result in a reduction in the value of your units.
• The financial condition of an ETF or an issuer of securities held by an ETF may worsen, resulting in a reduction in the value of your units. This may occur at any point in time, including during the primary offering period.
• Economic conditions may lead to limited liquidity and greater volatility. The markets for fixed-income securities, such as those held by certain ETFs, may experience periods of illiquidity and volatility. General market uncertainty and consequent repricing risk have led to market imbalances of sellers and buyers, which in turn have resulted in significant valuation uncertainties in a variety of fixed-income securities. These conditions resulted, and in many cases continue to result in, greater volatility, less liquidity, widening credit spreads and a lack of price transparency, with many debt securities remaining illiquid and of uncertain value. These market conditions may make valuation of some of the securities held by an ETF uncertain and/or result in sudden and significant valuation increases or declines in its holdings.
• Certain ETFs held by the Trust invest in securities that are rated below investment-grade and are considered to be “junk” securities. Below investment-grade obligations are considered to be speculative and are subject to greater market and credit risks, and accordingly, the risk of non-payment or default is higher than with investment-grade securities. In addition, such securities may be more sensitive to interest rate changes and more likely to receive early returns of principal in falling rate environments.
• Certain ETFs held by the Trust may invest in securities that are rated as investment-grade by only one rating agency. As a result, such split-rated securities may have more speculative characteristics and are subject to a greater risk of default than securities rated as investment-grade by more than one rating agency.
• The Trust invests in U.S.-listed foreign securities, a New York Registry Share and ADRs and certain ETFs held by the Trust may invest in foreign securities. Investment in foreign securities 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 and certain ETFs held by the Trust invest in securities issued by companies headquartered in countries considered to be emerging markets. Emerging markets are generally defined as countries with low per capita income in the initial stages of their industrialization cycles. 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 invests in securities issued by mid-capitalization companies and certain ETFs held by the Trust may invest in securities issued by small-capitalization and/or mid-capitalization companies. These securities customarily involve more investment risk than securities of large-capitalization companies. Small-capitalization and mid-capitalization companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments.
• Share prices or distributions 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 distributions in the future and, if declared, whether they will remain at current levels or increase over time.
• 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 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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