The Guggenheim Long-Term National Municipal Trust, Series 2 ("Trust") seeks to provide a high level of current income and to preserve capital by investing in a portfolio primarily consisting of investment-grade long-term municipal bonds.
|Wrap Fee Price||N/A|
|Estimated Current Return (ECR)||2.16%|
|Estimated Long Term Return (ELTR)||0.02%|
|Estimated Current Return (Wrap Fee)||2.16%|
|Estimated Long Term Return (Wrap Fee)||0.02%|
|Principal Amount of Bonds*||$201.34|
|Average Maturity||1.0 Years|
|Estimated Annual Income||$4.2100|
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 will invest in a portfolio of municipal bonds. The Sponsor will select bonds that it believes have the best chance to meet the Trust’s investment objective over its life.
Municipal bonds are debt instruments issued by state and local governments to raise money for various public works projects such as highways, airports and schools. The most distinct characteristic of municipal bonds is that generally these bonds provide interest income exempt from normal federal income taxes. However, such income may be subject to the federal alternative minimum tax. In addition to offering the potential for federally tax-exempt interest income, all of the municipal bonds held in the Trust will be rated investment-grade quality, as of the Trust’s initial date of deposit (the “Inception Date”), by at least one nationally recognized statistical rating organization. Such rating relates to the underlying bonds and not the Trust or the value of the units, which will fluctuate. There can be no assurance that any security contained in the Trust will retain an investment-grade rating for the life of the Trust. See “Description of Bond Ratings” in the prospectus for additional information.
Certain bonds in the Trust may be covered by insurance policies obtained from municipal bond insurers identified in “Trust Portfolio,” which guarantee payment of principal and interest on the bonds when due. As a result of such insurance, the insured bonds may receive ratings that reflect the creditworthiness of the bond insurer. Please note that the insurance relates only to the insured bonds in the Trust and not to the units or the market value of the bonds or of the units.
The Trust intends to pay interest distributions each month and expects to prorate the interest distributed on an annual basis; see “Distributions” in the prospectus. The record dates and distribution dates for principal and interest distributions are the 15th and 25th of each month, respectively. Furthermore, investors may receive principal distributions from bonds being called or sold prior to their maturity or as bonds mature.
The Sponsor has selected Guggenheim Partners Investment Management, LLC ("GPIM"), a subsidiary of Guggenheim Partners, LLC, to assist the Sponsor with the selection of the Trust’s portfolio.
* Interest on the bonds in the Trust is exempt from normal federal income taxes for U.S. investors. However, such income may be subject to the federal alternative minimum tax and state and local taxes. Investors may receive principal payments if bonds are sold or called, or mature. Investors will be subject to tax on any gain realized by the Trust on the disposition of bonds. A portion of distributions may be subject to ordinary income.
The Sponsor considered the following factors, among others, in selecting the bonds:
Asset Management, LLC (GPIM)
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 a subsidiary of Guggenheim Partners, LLC. See “General Information” in the prospectus for additional information.
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:
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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