The BofA Merrill Lynch Tax Reform Beneficiaries Portfolio, Series 1 ("Trust") seeks to provide capital appreciation.
|Wrap Fee Price||N/A|
|Remaining Deferred Sales Charge||$0.0000|
|Mandatory Maturity Date||4/17/2019|
|NASDAQ Ticker Symbol||CMTAAX|
|Inception Unit Price||$10.0000|
|Inception Liquidation Price||$9.8650|
|Deferred Sales Charge Dates||
|Number of Holdings||30|
|Historical Annual Dividend Distribution||$0.1349|
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||31.67|
|Weighted Average Price/Book (P/B) Ratio||5.46|
|Weighted Average Market Cap (MM)||$151,785.48|
|US Common Stock||100.00%|
|Health Care Equipment & Supplies||3.50%|
|Health Care Providers & Services||20.55%|
|Life Sciences Tools & Services||3.25%|
|Internet Software & Services||3.00%|
|Technology Hardware Storage & Peripherals||6.32%|
|Road & Rail||4.06%|
|Trading Companies & Distributors||3.02%|
|Diversified Telecommunication Services||4.30%|
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 seeks to provide a portfolio of companies that the Sponsor believes may be beneficiaries of the current administration’s corporate tax reform policy. The Trust invests at least 80% of the value of its assets in securities identified by BofA Merrill Lynch’s Research group as companies poised to benefit from a reduction in the corporate income tax rate from its 2017 level as well as companies that may benefit from a repatriation tax holiday. The securities identified by Merrill Lynch’s Research group were identified without regard to the Trust or its unitholders. There can be no assurance that any security held by the Trust will meet the Trust objective or will benefit from the current administration's corporate tax reform policy. The Trust may invest in U.S.-listed common stocks, which may include the common stocks of U.S. and non-U.S. companies.
The Trust may also invest in securities of companies with small-, mid- and large-capitalizations.
As a result of this strategy, the Trust is concentrated in the health care sector and invests significantly in the consumer products sector.
The Sponsor selects securities based upon companies identified by Merrill Lynch Research as companies that could benefit from lower U.S. corporate income tax rates. The strategy starts with companies included in the S&P 500 Index and applies various criteria, including but not limited to the following:
• Exclude utilities companies and real estate investment Trusts;
• Include companies with over 90% of sales generated in the U.S.;
• Include companies with positive trailing 12-month pre-tax income;
• Include companies with their latest fiscal year domestic tax rate greater than 37%, if any; otherwise, include companies with a trailing 12-month company tax rate greater than 37%; and
• Include companies with their median 5-year domestic tax rate greater than 37%, if any; otherwise, include companies with a median 5-year company tax rate greater than 37%.
Additionally, the Sponsor selects securities based upon companies identified by Merrill Lynch Research as companies that could benefit from a tax repatriation holiday. The strategy starts with companies included in the S&P 500 Index and applies various criteria, including but not limited to the following:
• Exclude financial companies; and
• Include companies with foreign cash representing at least 5% of their market capitalization.
The Sponsor believes that these types of companies have the potential to benefit from the corporate tax reform changes. In addition, the Sponsor limits its selection to stocks that trade on U.S. exchanges and screens stocks for liquidity.
Index Definitions: The S&P 500® Index is a market-weighted stock market index comprised of the stocks of 500 U.S. corporations. Indices are unmanaged and it is not possible to invest directly in an index.
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.
• 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 securities identified by BofA Merrill Lynch’s Research group as companies poised to benefit from a reduction in the corporate income tax rate from its 2017 level as well as companies that may benefit from a repatriation tax holiday. 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.
• 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 is concentrated in the health care sector. As a result, the factors that impact the health care sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. General risks of companies in the health care sector include extensive competition, generic drug sales, the loss of patent protection, product liability litigation and increased government regulation.
• 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 securities issued by mid-capitalization companies. These securities customarily involve more investment risk than securities of large-capitalization companies. 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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