The Kensho New Horizons Portfolio, Series 9 ("Trust") seeks to maximize total return primarily through capital appreciation.
|Wrap Fee Price||$10.4937|
|Remaining Deferred Sales Charge||$0.2250|
|Mandatory Maturity Date||12/9/2022|
|Inception Unit Price||$10.0000|
|Inception Liquidation Price||$9.7750|
|Deferred Sales Charge Dates||
|Number of Holdings||30|
|Rate Fee Based||0.46%|
* The Historical Annual Dividend Distribution (HADD) per unit is as of the day prior to trust deposit and subject to change. The HADD per unit is the weighted average of the trailing twelve-month distributions paid by the securities included in the portfolio. The HADD rate is based on the HADD divided by the current offer price and recalculated daily. Both the HADD per unit and the rate shown are reduced to account for the effects of fees and expenses, which will be incurred when investing in the Trust. The HADD per unit and rate will vary due to certain factors that may include, but are not limited to, a change in the dividends paid by issuers, a change in Trust expenses or the sale or maturity of securities in the portfolio. There is no guarantee the issuers of the securities included in the Trust will declare dividends or distributions in the future. The HADD of the securities included in the Trust is for illustrative purposes only and is not indicative of the Trust’s distribution. Due to the negative economic impact across many industries caused by the recent COVID-19 outbreak, certain issuers of the securities included in the trust may elect to reduce the amount of, or cancel entirely, dividends and/or distributions paid in the future. As a result, the HADD figure will likely be higher, and in some cases significantly higher, than the actual distribution rate achieved by the trust.
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||36.48|
|Weighted Average Price/Book (P/B) Ratio||4.98|
|Weighted Average Market Cap (MM)||$37,170.64|
|US Common Stock||93.13%|
|Non US Common Stock||6.87%|
|Aerospace & Defense||69.35%|
|Electronic Equipment Instruments & Components||4.99%|
|Semiconductors & Semiconductor Equipment||2.59%|
|Containers & Packaging||1.91%|
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 invests in equity securities of companies with products or services associated with specific areas of innovation related to space. The Trust seeks to select companies that may benefit from innovations in certain space-related areas. The Trust seeks to substantially replicate the S&P Kensho SpaceSM Index (the “Index”) as of the date of deposit. The Trust may invest in U.S.-listed securities, including U.S.-listed foreign securities and American Depositary Receipts (“ADRs”). Additionally, the Trust may invest in companies with small-, mid- and large-capitalizations.
As a result of this strategy, the Trust is concentrated in the industrials sector.
As of the date of deposit, the Trust generally invests in the securities comprising the Index in proportion to their weightings in the Index. The Index selects securities based on the following criteria:
1) Begin with all companies with common stock listed on a major U.S. exchange, including ADRs.
2) Perform an automated scan of all regulatory filings to identify companies with businesses that produce products or services related to specific areas of innovation related to space: '
• Spacecrafts, space launch vehicles, space flight, or space stations and related components and services
• Space mission assurance, operation, or support
• Space imaging
• Space communication, excluding satellite-to-satellite communication
• Space or ground based support infrastructure
• Space-related military armaments and capabilities
• Small satellite hardware and software manufacturers
Companies are selected if they state they produce a product or service related to these areas of innovation. The Index is forward-looking and, therefore, company selection is explicitly not intended to reflect how much revenue a company currently derives from its space-related activities.
3) Companies are then categorized based on their degree of emphasis on the space-related activities within the context of their overall business. Core companies are those for which their space-related activities are an emphasized component of their business strategy, and is identified as such based on the prominence (e.g., location, frequency, context) of the disclosures regarding their space-related activities in such company’s regulatory filings. All companies that are not categorized as Core companies are considered Non-Core companies.
4) Only include securities that meet the following capitalization and liquidity requirement:
• $300 million USD minimum market capitalization threshold; and
• $2 million USD minimum 3-month average daily traded value.
5) The securities within a space-related activity category are initially equal weighted. Afterwards, Core securities are overweighted relative to Non-Core securities. The Core securities are overweighted by an amount that is equal to their proportion of the whole Index multiplied by 20%.
6) The final securities weightings are reviewed and, if necessary, adjusted to ensure that each security has sufficient liquidity for large trades.
The Index will be rebalanced after the date of deposit and the securities in the Index may fluctuate during the life of the Trust. The Trust will not rebalance its portfolio or track the Index during its lifetime. The Index provider for the Trust is Kensho Technologies, LLC (“Kensho”), who is not affiliated with the Trust.
The Trust will only invest in the securities that comprise the Index as of the date of deposit and weighs them in accordance to the Index. However, the Trust may exclude securities that are in the Index if a security has a pending merger or acquisition that will lead to delisting of the security or if a security is subject to possible future delisting due to announced pending corporate actions. If any security in the Index is removed, the Trust will redistribute the weight of the removed securities across the remaining securities in a pro-rata manner. As of the date of deposit, the Trust will include 30 of the 30 securities in the Index. Please note that due to the fluctuating nature of security prices, the weighting of an individual security in the Trust portfolio may change after the security selection date.
Index Definition: The Kensho Space Index uses an entirely rules-based methodology to objectively uncover companies involved in the Space sector, and is composed of U.S.-listed companies focused on space-related activities as a principal component of their business strategy as well as the supply-chain companies involved in the industry.
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. Changes in legal, political, regulatory, tax and economic conditions may cause fluctuations in markets and securities prices, which could negatively impact the value of the Trust. Additionally, event such war, terrorism, natural and environmental disasters and the spread of infectious illnesses or other public health emergencies may adversely affect the economy, various markets and issuers. Recently, the outbreak of a novel and highly contagious form of coronavirus (“COVID-19”) has adversely impacted global commercial activity and contributed to significant volatility in certain markets. Many governments and businesses have instituted quarantines and closures, which has resulted in significant disruption in manufacturing, supply chains, consumer demand and economic activity. The potential impacts are increasingly uncertain, difficult to assess and impossible to predict, and may result in significant losses. Any adverse event could materially and negatively impact the value and performance of Trust and the Trust’s ability to achieve its investment objectives. 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.
• The Trust will not track the Index. The Trust generally invests in the securities of the Index in proportion to their weightings in the Index as of the date of deposit. The Trust will not rebalance during its life. As a result, the Trust’s portfolio may deviate from the Index during the life of the Trust and may not match the returns of the Index.
• The Trust invests in companies associated with space-related activities. The exploration of space and the harvesting of space assets is a business based in future and is witnessing new entrants into the market. This is a global event with a growing number of corporate participants looking to meet the future needs of a growing global population. Therefore, investments in the Trust will be riskier than traditional investments in established industry sectors and the growth of these companies may be slower and subject to setbacks as new technology advancements are made to expand into space.
• The Trust is concentrated in the industrials sector. As a result, the factors that impact the industrials sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. Adverse developments in this sector may significantly affect the value of your units. Companies involved in the industrials sector must contend with the state of the economy, intense competitors, domestic and international politics, excess capacity and spending trends.
• The Trust includes 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.
• 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.
• The Trust may be susceptible to potential risks through breaches in cybersecurity. A breach in cybersecurity refers to both intentional and unintentional events that may cause the Trust to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Sponsor of the Trust to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. In addition, cybersecurity breaches of the Trust’s third-party service providers, or issuers in which the Trust invests, can also subject the Trust to many of the same risks associated with direct cybersecurity breaches.
• The Trust is subject to risks arising from various operational factors and their service providers. Operational factors include, but not limited to, human error, processing and communication errors, errors of the Trust’s service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Additionally, the Trust may be subject to the risk that a service provider may not be willing or able to perform their duties as required or contemplated by their agreements with the Trust. Although the Trust seeks to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks.
• 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 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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