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Guggenheim Long-Term National Municipal Trust Series 2

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Investment Objective

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.

Principal Investment Strategy

Selection Criteria

Risks and Other Considerations

Portfolio Information

Daily Data

Offer Price N/A
Wrap Fee Price N/A
Liquidation Price $195.31
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%
Accrued Interest $0.04
Principal Amount of Bonds* $201.34
Average Maturity 1.0 Years
Estimated Annual Income $4.2100

CUSIPs

Monthly-Cash 40167C520
Monthly-Fee/Cash 40167C538

 

Deposit Information

Inception Date 5/6/2011
Non-Reoffered Date 6/6/2011
Ticker Symbol CGLTBX
Trust Structure RIC
Inception Unit Price $1,006.48
Inception Liquidation Price $957.48
Deferred Sales Charge Dates Sep 2011
Oct 2011
Nov 2011
Dec 2011

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.

Selection Criteria

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

  • The bonds must be rated as investment-grade or above by at least one nationally recognized statistical rating organization;
  • The price of the bonds relative to other bonds with comparable characteristics;
  • Attractiveness of the interest payments relative to bonds with similar characteristics;
  • The potential for early return of principal or any event risk which could have a negative impact on the price of the bonds; and
  • Showing a preference for non-AMT (alternative minimum tax) bonds. Guggenheim Partners

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:

  • Municipal bonds are fixed rate debt obligations that generally decline in value with increases in interest rates, an issuer’s or an insurer’s worsening financial condition, a drop in bond ratings or when there is a decrease in federal income tax rates. Typically, bonds with longer periods before maturity are more sensitive to interest rate changes.
  • Municipal bonds are subject to credit risk in that an issuer of a bond may be unable to make interest and principal payments when due. In general, lower rated bonds carry greater credit risk.
  • The Sponsor does not actively manage the portfolio. Because the portfolio is fixed and not managed, in general, the Trust only sells bonds at the Trust’s termination or in order to meet redemptions, for tax purposes, for credit issues or to pay sales charges and expenses. As a result, the price at which a bond is sold may not be the highest price the Trust could have received during the life of the Trust.
  • No assurance can be given that the Trust’s investment objective will be achieved. This objective is subject to the continuing ability of the respective issuers of the bonds to meet their obligations.
  • The Trust is subject to market risk. Market value fluctuates in response to various factors. These can include changes in interest rates, inflation, the financial condition of a bonds’ issuer, perceptions of the issuer, ratings on a bond, or political or economic events affecting 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.
  • An issuer or an insurer of the bonds may be unwilling or unable to make principal payments and/or interest payments in the future, may call a security before its stated maturity, or may reduce the level of payments made. In addition, there is no guarantee that the issuers will be able to satisfy their interest or principal payment obligations to the Trust over the life of the Trust. This may result in a reduction in the value of your units.
  • Changes in the tax treatment of bonds either due to future legislation or due to the failure of a public issuer of a bond (or private guarantor) to meet certain conditions imposed by various tax laws may have an adverse impact on the value of the units and the bonds held in the Trust.
  • The Trust invests in medical and health care facilities bonds. The ability of hospitals and other health care facilities to meet their obligations with respect to revenue bonds issued on their behalf is dependent on several factors. Some of those include the level of payments received from third-party payors and government programs, the cost of providing health care services, and a health care provider’s liability for any claims or legal actions by patients and others in the ordinary course of their business.
  • The financial condition of an issuer or an insurer of the bonds may worsen or its credit ratings may drop, resulting in a reduction in the value of your units. This may occur at any point in time, including during the primary offering period. There can be no assurance that any security contained in the Trust will retain an investment-grade rating for the life of the Trust.
  • The income generated by the Trust may be reduced over time in response to bond sales, changes in distributions paid by issuers, unit redemptions and expenses.
  • Certain municipal bonds may be 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 may sell bonds to meet redemptions, to pay deferred sales fees and expenses, for credit issues and in other circumstances. Accordingly, the size, diversity, composition, returns and income generated by the Trust may be adversely affected. In addition, such sales of bonds may be at a loss. If such sales are substantial enough, provisions of the Trust’s indenture could cause a complete and unexpected liquidation of the Trust before its scheduled maturity, resulting in unanticipated losses for investors.
  • Certain of the bonds included in the Trust may be original issue discount bonds or “zero coupon” bonds, as noted in “Trust Portfolio.” These bonds may be subject to greater price fluctuations with changing interest rates and contain additional risks.
  • Inflation may lead to a decrease in the value of assets or income from investments.

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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