The Global 100 Dividend Strategy Portfolio, Series 14 ("Trust") seeks to provide dividend income.
|Wrap Fee Price||$9.8579|
|Remaining Deferred Sales Charge||$0.1350|
|Mandatory Maturity Date||6/17/2019|
|NASDAQ Ticker Symbol||CGONNX|
|Inception Unit Price||$10.0000|
|Inception Liquidation Price||$9.8650|
|Deferred Sales Charge Dates||
|Number of Holdings||100|
|Historical Annual Dividend Distribution||$0.4925|
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.
|Weighted Average Price/Earnings (P/E) Ratio||24.11|
|Weighted Average Price/Book (P/B) Ratio||2.68|
|Weighted Average Market Cap (MM)||$47,832.43|
|Non US Common Stock||50.72%|
|US Common Stock||44.39%|
|Oil Gas & Consumable Fuels||10.89%|
|Containers & Packaging||0.97%|
|Metals & Mining||4.22%|
|Paper & Forest Products||3.27%|
|Hotels Restaurants & Leisure||1.00%|
|Commercial Services & Supplies||3.83%|
|Trading Companies & Distributors||1.01%|
|Independent Power and Renewable Electricity Producers||6.04%|
|Diversified Telecommunication Services||5.11%|
|Wireless Telecommunication Services||4.88%|
|Health Care Equipment & Supplies||1.04%|
|Health Care Providers & Services||1.80%|
|Electronic Equipment Instruments & Components||0.90%|
|Semiconductors & Semiconductor Equipment||1.85%|
|Technology Hardware Storage & Peripherals||1.97%|
|Mortgage Real Estate Investment Trusts (REITs)||1.01%|
|Equity Real Estate Investment Trusts (REITs)||3.89%|
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 dividend-paying securities. The Trust seeks to provide dividend income by investing in a portfolio of U.S. and international equity securities. The Sponsor will select 100 equally weighted securities as of the Security Selection Date, defined below, for inclusion in the Trust, of which 50 securities will be selected using the U.S. 50 Dividend Strategy and 50 securities will be selected using the International 50 Dividend Strategy. The international equity securities held by the Trust may include securities issued by companies located in countries considered to be emerging markets. As of the date of deposit, the Trust will invest at least 40% of its assets in the securities of non-U.S. companies located in at least three different countries, as defined by Russell Investments. In addition, the Trust may invest in securities of companies with small-, mid- and large-capitalizations. The Trust may include securities of real estate investment Trusts (“REITs”).
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 Sponsor and GPIM believe that companies that distribute significant dividends on a consistent basis generally demonstrate financial strength and positive performance relative to their peers.
As a result of this strategy, the Trust is concentrated in securities issued by European companies and invests significantly in the consumer products sector.
The Trust’s portfolio was constructed and the securities were selected five business days prior to the initial date of deposit (the “Security Selection Date”) using the two quantitative strategies listed below.
U.S. 50 Dividend Strategy
1. Initial Universe: Start with the 3,000 largest U.S. companies as determined by Russell Investments, which may include U.S.-listed foreign securities. Market capitalization is measured as of the Security Selection Date.
2. Define Sub-Universe: Reduce the initial universe of securities to a sub-universe that meets the following requirements as of the Security Selection Date:
3. Rank on Dividends: Rank every company identified in the sub-universe against other companies in the same sector/group for this strategy, as defined by Global Industry Classification Standard (“GICS”) (which combines the financial and real estate sectors as one sector, as they were one sector prior to September 1, 2016), based on current dividend yield. The dividend yields were calculated by annualizing the last quarterly or semi-annual ordinary dividend declared and dividing the result by the price per share of the security as of the close of business on the Security Selection Date.
4. Selection: Select from the sub-universe the five securities within each of the 10 GICS sectors/groups for this strategy with the highest dividend yield and equally weight these 50 securities as of the Security Selection Date so that each security represents 1% of the Trust’s portfolio. This strategy selection must have a minimum 80% in U.S. incorporated companies. If the strategy violates the 80% minimum in U.S. incorporated companies, the lowest yielding foreign incorporated security will be removed and replaced by the next highest yielding U.S. incorporated company in that sector/group. This substitution process will be repeated, if necessary, until 80% of the strategy consists of U.S. incorporated companies.
International 50 Dividend Strategy
1. Initial Universe: Start with companies included in the Russell Global ex-US Index that issue American Depositary Receipts (“ADRs”) or U.S.-listed common stock, excluding over-the-counter securities.
2. Define Sub-Universe: Reduce the initial universe of securities to a sub-universe that meets the following requirements as of the Security Selection Date:
3. Rank on Dividends: Rank every company identified in the sub-universe against other companies in the same sector/group for this strategy, as defined by GICs (which combines the financial and real estate sectors as one sector, as they were one sector prior to September 1, 2016), based on trailing dividend yield. For an ADR, the dividend yield was calculated by using either: (i) the parent security for an issuer with a foreign-listed reference security; or (ii) the U.S. security if the company is only listed in the United States. The dividend yields were calculated by summing the last twelve months of dividends paid per share and dividing the result by the price per share of the security as of the close of business on the Security Selection Date.
4. Selection: Select from the sub-universe the five securities within each of the 10 GICS sectors/groups for this strategy with the highest dividend yield and equally weight these 50 securities as of the Security Selection Date so that each security represents 1% of the Trust’s portfolio. This strategy selection must ensure the Trust has a minimum of 40% in securities of non-U.S. companies located in at least three different countries. If the Trust violates these minimums, the lowest yielding security from this strategy will be removed and replaced with the next highest yielding security in that sector/group. This substitution process will be repeated, if necessary, until 40% of the Trust consists of non-U.S. companies located in at least three different countries.
In the event that less than 50 securities are available for the International 50 Dividend Strategy, no additional securities will be selected for this strategy and, as a result, the final portfolio will have less than 100 securities. The securities chosen for the final portfolio will be equally weighted as of the Security Selection Date and, accordingly, each security will be greater than 1% of the Trust portfolio on the Security Selection Date. Regardless of the number of securities in the final portfolio, the minimum selection criteria discussed in each strategy will be met.
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 Security Selection Date.
INDEX DEFINITION: The Russell Global Index is designed to measure the performance of the global equity market based on all investable equity securities. The Russell Global Index represents 98% of the investable universe, reflecting the performance of over 10,000 securities in 47 countries. The Russell Global ex-US Index measures the performance of the global equity market based on all investable equity securities, excluding companies assigned to the United States.
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.
• 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.
• Securities selected according to this strategy may not perform as intended. The Trust is exposed to additional risk due to its policy of investing in accordance with an investment strategy. Although the Trust’s investment strategy is designed to achieve the Trust’s investment objective, the strategy may not prove to be successful. The investment decisions may not produce the intended results and there is no guarantee that the investment objective will be achieved.
• 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 in U.S.-listed foreign securities, ADRs and New York Registry Shares. The Trust’s investment in U.S.-listed foreign securities, 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 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, the effect of the June 2016 United Kingdom referendum to leave the European Union (“EU”) is still developing. The referendum has resulted in depreciation in the value of the British pound, short term declines in the stock markets and ongoing economic and political uncertainty. The United Kingdom’s withdrawal from the EU may take an extended period, and there is considerable uncertainty about the potential trade, economic and market consequences of the exit.
• The Trust invests in securities issued by companies headquartered or incorporated 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 small-capitalization and 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.
• 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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