The International Dividend Trust, Series 45 ("Trust") seeks to provide total return primarily through capital appreciation and dividend income.
|Wrap Fee Price||$10.3759|
|Remaining Deferred Sales Charge||$0.1350|
|Mandatory Maturity Date||1/4/2021|
|NASDAQ Ticker Symbol||CMVPTX|
|Inception Unit Price||$10.0000|
|Inception Liquidation Price||$9.8650|
|Deferred Sales Charge Dates||
|Number of Holdings||30|
|Historical Annual Dividend Distribution*||$0.4663|
* The Historical Annual Dividend Distribution (HADD) is as of the day prior to trust deposit and subject to change. 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 rate. The HADD is the weighted average of the trailing twelve-month distributions paid by the securities included in the portfolio and is reduced to account for the effects of fees and expenses, which will be incurred when investing in the Trust. The HADD 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.
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||19.23|
|Weighted Average Price/Book (P/B) Ratio||3.03|
|Weighted Average Market Cap (MM)||$66,988.01|
|Non US Common Stock||100.00%|
|Diversified Telecommunication Services||9.77%|
|Wireless Telecommunication Services||10.04%|
|Oil Gas & Consumable Fuels||16.37%|
|Metals & Mining||10.20%|
|Semiconductors & Semiconductor Equipment||4.04%|
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 total return primarily through capital appreciation and dividend income by investing in a portfolio of international equity securities listed on public U.S. securities exchanges. The international equity securities held by the Trust may include the securities issued by companies headquartered in countries considered to be emerging markets. The Trust’s strategy is to capture international growth potential, while applying dividend income to counterbalance global economic volatility and to potentially insulate the Trust from further potential domestic slowdown. As a result of this strategy, the Trust invests significantly in the communication services and financials sectors and is concentrated in securities issued by companies headquartered or incorporated in Europe and in securities issued by companies headquartered or incorporated in emerging market countries.
The Sponsor, with the assistance of Guggenheim Partners Investment Management, LLC (“GPIM”), an affiliate of the Sponsor and 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 demonstrate strong financial strength and positive performance relative to their peers.
The Trust’s portfolio was constructed and the securities were selected on September 24, 2019 (the “Security Selection Date”) using the Security Selection Rules and the Portfolio Diversification & Concentration Rules outlined below.
Security Selection Rules:
In constructing the Trust’s portfolio, 30 securities were selected based on the following fundamentally based quantitative criteria as of the Security Selection Date. Except as set forth herein, the investment strategy utilizes information provided by FactSet.
1. Start with an initial universe of U.S.- traded (non-OTC) equity securities that are either a member of the Morningstar Global Markets ex-US Index or an American depositary receipt (“ADR”) that references an index member.
2. Reduce the initial universe of securities to a sub-universe that consists exclusively of all securities that meet all of the following requirements:
• Market capitalization greater than $5 billion. Market capitalization is determined by the closing price as of the Security Selection Date.
• Minimum liquidity of $0.5 million. Liquidity is determined by the median 90-day trading volume in U.S. dollars using a 90-trading day look back from the Security Selection Date (i.e., trading volume in shares multiplied by the closing price for the day).
• Minimum three-year price history for each security’s primary equity listing, as designated by FactSet. For ADR securities, the “parent equity listing” is generally the foreign-listed security that the depository receipt references. For companies that cross list across countries, FactSet determines the “parent equity listing” based on their proprietary analysis of listing dates, country of domicile, and liquidity. For some foreign companies, the U.S.-listed security is also the “parent equity listing” if the foreign company chose only to list equity securities in the United States.
• Duplication screen so that in the event a parent company has multiple classes of securities that meet the above criteria, the class that has the greatest 90-day trading volume is considered for final selection.
3. Dividend Yield Rank: Select from the sub-universe above the 30 securities, as of the Security Selection Date, with the highest arithmetic average of the three trailing yearly actual dividend yields. The three trailing yearly periods are defined as the full year of time that each end on the same month and day as the Security Selection Date for the current year, last year, and two years ago. Each yearly period’s actual dividend yield is measured as all dividends whose ex-dividend date fell within the yearly period, divided by the latest closing security price before the begin date of such yearly period.
For example, if the Security Selection Date is March 12, 2012, then the prior yearly period includes March 13, 2011 to March 12, 2012, and the starting security price for this period is the last closing price of the security before the begin date, which was March 11, 2011 since the 13th was a Sunday. Securities are eligible for selection if their actual dividend yield exceeded the median actual dividend yield for all securities in the sub-universe in each of the three prior years. Median dividend yield is defined as the specific dividend yield that separates the higher half of the annual dividend yields of the sub-universe of securities from the lower half of the annual dividend yields of the sub-universe of securities. The 30 securities are subject to the Portfolio Diversification & Concentration Rules below.
Portfolio Diversification & Concentration Rules:
The Trust’s portfolio will consist of 30 securities, equally weighted as of the Security Selection Date, using the Security Selection Rules outlined above that also satisfy the Portfolio Diversification & Concentration Rules below:
1. Sector Diversification: The Trust’s portfolio must consist of securities from a minimum of six of the Global Industry Classification Standards (“GICS”) sectors with no more than 25% of the Trust’s portfolio in any single GICS sector as of the Security Selection Date.
2. Geographical Diversification: The Trust’s portfolio must consist of securities from companies in at least 10 different countries (as categorized by Morningstar) with no more than 20% of the Trust’s portfolio from any single country as of the Security Selection Date.
If the initial portfolio violates either diversification rule, then the lowest ranked security (using the Dividend Yield Rank) that violates either rule is replaced by the next highest ranked security that does not violate a diversification rule. This is continued until the diversification rules are satisfied.
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.
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 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 communication services sector. As a result, the factors that impact the communication services sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. General risks of companies in the communication services sector include the impacts of existing and changing government regulations, intense competitive pressures and rapid technological advances. Additionally, product obsolescence and changing consumer preferences affect communication services companies.
• The Trust invests significantly in the financial sector. As a result, the factors that impact the financial sector will likely have a greater effect on this Trust than on a more broadly diversified Trust. Companies in the financial sector include banks, insurance companies and investment firms. The profitability of companies in the financial sector is largely dependent upon the availability and cost of capital which may fluctuate significantly in response to changes in interest rates and general economic developments. Financial sector companies are especially subject to the adverse effects of economic recession, decreases in the availability of capital, volatile interest rates, portfolio concentrations in geographic markets and in commercial and residential real estate loans, and competition from new entrants in their fields of business.
• The Trust invests in U.S.-listed foreign securities, New York Registry Shares and American Depositary Receipts (“ADRs”). The Trust’s investment in U.S.-listed foreign securities, New York Registry Shares and ADRs 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 companies headquartered in countries considered to be emerging markets. As a result, political, economic or social developments in these countries may have a significant impact on the securities included in the Trust. 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 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 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.
• 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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