The Guggenheim Balanced Income Builder Portfolio, Series 5 (“Trust”) seeks current income with the potential for capital appreciation.
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 seeks to provide a high level of income with the potential for capital appreciation by investing in dividend-paying stocks of U.S. companies along with shares of exchange-traded funds (“ETFs”) that invest 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 common stocks in the Trust are selected according to the quantitatively-selected US High Dividend Strategy described below. Certain of the common stocks included in the Trust portfolio are issued by real estate investment Trusts (“REITs”). Please see “Principal Risks” and “Investment Risks” for additional information concerning the risks associated with investing in REITs.
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 according to the US High Dividend Strategy 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 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. Please see “Principal Risks” and “Investment Risks” for additional information concerning the risks associated with investing in high-yield securities or “junk” bonds.
The fixed-income ETFs included in the portfolio will invest in debt securities with shortterm, medium-term and long-term maturities. Typically fixed-income securities with longer periods before maturity are more sensitive to interest rate changes. See “Principal Risks” and “Investment Risks” for additional information concerning the risks associated with investing in fixed-income securities of short, medium and long-term durations.
Finally, the fixed-income ETFs included in the portfolio will invest in debt securities issued by foreign companies, including companies located in emerging markets. See “Principal Risks” and “Investment Risks” for additional information concerning the risks associated with investing in securities of foreign issuers, including issuers located in emerging markets.
See “Investment Policies” in Part B of the prospectus for more information.
US High Dividend Strategy
Approximately 50% of the Trust portfolio will constitute the 25 common stocks selected according to the US High Dividend Strategy. These stocks were selected five business days prior to the initial date of deposit (the “Inception Date”) using the security selection rules described below.
Security Selection Rules:
In constructing the common stock component of the Trust’s portfolio, 25 securities will be selected based on the following fundamentally based quantitative criteria:
Please note that due to the fluctuating nature of security prices, the weighting of an individual security or sector in the Trust portfolio may change after the portfolio selection date.
Fixed-Income Exchange-Traded Funds
Approximately 50% of the Trust portfolio will constitute ETFs that invest in 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.
Guggenheim Partners Investment Management, LLC
Guggenheim Partners Investment Management, LLC is a subsidiary of Guggenheim Partners, LLC and an affiliate of the Sponsor, which offers financial services expertise within its asset management, investment advisory, capital markets, institutional finance and merchant banking business lines. Clients consist of a mix of individuals, family offices, endowments, foundations, insurance companies, pension plans and other institutions that together have entrusted the firm with supervision of more than $100 billion in assets. A global diversified financial services firm, Guggenheim Partners, LLC office locations include New York, Chicago, Los Angeles, Miami, Boston, Philadelphia, St. Louis, Houston, London, Dublin, Geneva, Hong Kong, Singapore, Mumbai and Dubai.
The Sponsor is also indirectly owned by Guggenheim Partners, LLC and is an affiliate of GPIM.
INDEX DEFINITIONS: The S&P Composite 1500 Index combines three leading indices, the S&P 500®, the S&P MidCap 400®, and the S&P SmallCap 600® to cover approximately 90% of the U.S. market capitalization. The S&P 1000 Index combines the S&P MidCap 400® and the S&P SmallCap 600® to form an investable benchmark for the mid-small cap segment of the U.S. equity market.
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.
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