The Guggenheim Select Quality Municipal Portfolio, Series 6 ("Trust") seeks to provide current income and to preserve capital.
|Wrap Fee Price||$831.61|
|Estimated Current Return (ECR)||4.06%|
|Estimated Long Term Return (ELTR)||4.44%|
|Estimated Current Return (Wrap Fee)||4.18%|
|Estimated Long Term Return (Wrap Fee)||4.64%|
|Principal Amount of Bonds*||$1,000.77|
|Average Maturity||25.3 Years|
|Estimated Annual Income †||$34.7400|
†Estimated Annual Income represents the principal amount of the underlying bonds held in the Trust and does not take into account the impact of the sale of bonds to pay expenses of the trust.
* 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
Under normal circumstances, the Trust will invest at least 80% of the value of its assets in a portfolio of municipal bonds. As of the Trust’s initial date of deposit (the “Inception Date”), 100% of the Trust’s portfolio is invested in 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. In addition to offering the potential for federally tax-exempt interest income, at least 90% of the municipal bonds held in the Trust will be rated investment-grade quality, as of the Inception Date, by at least one of the following ratings agencies: Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“Standard & Poor’s”) or Moody’s Investors Service (“Moody’s”) or, if unrated, judged by the Sponsor to be of comparable quality. Such rating relates to the underlying bonds and not the Trust. Investment-grade bonds are bonds that are rated at least in the category of BBB by Standard & Poor’s or Baa by Moody’s. A rating in the category of BBB or Baa is the lowest possible investment-grade rating. See “Description of Bond Ratings” for details.
No more than 10% of the Trust’s portfolio, as of the Inception Date, may consist of: (i) securities rated BB by Standard & Poor’s or Ba by Moody’s, or, if unrated, judged by the Sponsor to be of comparable quality, at time of purchase; (ii) securities that may be deemed to be unsecured obligations of the borrower; or (iii) municipal bonds exposed to annual appropriation risk. Bonds that are rated below investment-grade as determined by at least one or more nationally recognized statistical rating organizations and are considered high-yield or “junk” bonds. Obligations rated below investment-grade should be considered speculative as these ratings indicate a quality of less than investment-grade. Because high-yield bonds are generally subordinated obligations and are perceived by investors to be riskier than higher rated securities, their prices tend to fluctuate more than higher rated securities and are affected by short-term credit developments to a greater degree than investment-grade bonds. See “Description of Bond Ratings” for additional information.
The Trust may invest in municipal bonds with any maturity term.
The Trust will not invest in any alternative minimum tax bonds or zero coupon bonds.
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 have received ratings that may reflect the creditworthiness of the bond issuer. 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 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.
The Sponsor considered the following factors, among others, in selecting the bonds:
• 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;
• Showing a preference for non-AMT (alternative minimum tax) bonds; and
• A preference for tax-exempt bonds that are secured by a dedicated revenue stream or supported by a full faith and credit pledge of state and local governments, respectively. In addition, project bonds secured by mortgages are preferred to those that do not include collateral in the security package.
Guggenheim Partners Investment 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” 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 Partners Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, Guggenheim Partners Fund Management (Europe) Limited, Guggenheim Partners Japan Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management. Securities offered through Guggenheim Funds Distributors, LLC.
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