The Income Closed-End & Treasury Allocation Portfolio ("Trust") seeks to provide high current income and 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
Under normal circumstances, the Trust will invest at least 80% of the value of its assets in either shares of an exchange-traded fund (“ETF”) which tracks a U.S. Treasury bond index, or common stocks of closed-end investment companies (“closed-end funds”) that invest in various income-oriented securities of different asset classes. These asset classes may include, but are not limited to:
Claymore, through proprietary research and strategic alliances, will strive to select closed-end funds featuring the potential for current income, diversification and overall liquidity.
See “Investment Policies” in Part B of the prospectus for additional information.
The Sponsor has selected for the portfolio closed-end funds and an ETF believed to have the best potential to achieve the Trust’s investment objective.
As of the Trust’s initial date of deposit (the “Inception Date”), 100% of the Trust’s portfolio is invested in either shares of an ETF which tracks a U.S. Treasury bond index, or closed-end funds that invest in various income-oriented securities of different asset classes.
When selecting closed-end funds for inclusion in this portfolio the Sponsor looks at numerous factors. These factors include, but are not limited to:
Investment Objective. The Sponsor favors funds that have a clear investment objective in line with the Trust’s objective and, based upon a review of publicly available information, appear to be maintaining it.
Premium/Discount. The Sponsor favors funds that are trading at a discount relative to their peers and relative to their long-term average.
Consistent Dividend. The Sponsor favors funds that have a history of paying a consistent and competitive dividend which, in the opinion of the Sponsor, can be maintained. average.
Performance. The Sponsor favors funds that have a history of strong relative performance (based on market price and net asset value) when compared to their peers and an applicable index.
The Sponsor will seek to select an ETF for inclusion in the Trust portfolio which tracks a low duration U.S. Treasury bond index in an effort to dampen the Trust’s duration sensitivity and lower the Trust’s overall volatility. When selecting the ETF the Sponsor looks at numerous factors. These factors include, but are not limited to: duration, maturity and coupon rate. Due to the current economic environment, U.S. Treasury bonds and ETFs that invest in U.S. Treasury bonds are generating yields that are at historic lows. While U.S. Treasury bonds are considered to be some of the most risk adverse securities available, if U.S. Treasury bond yields remain at its current levels, the ETF included in the Trust’s portfolio may not contribute to or may lower the Trust’s performance. As of the Inception Date, the ETF comprised approximately 20% of the Trust’s portfolio.
Risks and Other Considerations
As with all investments, you may lose some or all of your investment in the Trust. 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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