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Tekla Medical Science Innovation Portfolio Series 3

Trust Resources
Fact Card

Investment Objective

The Tekla Medical Science Innovation Portfolio, Series 3 ("Trust") seeks to maximize total return through capital appreciation.

Principal Investment Strategy

Selection Criteria

Risks and Other Considerations

Portfolio Information

Daily Data

Offer Price $9.1160
Wrap Fee Price $8.9153
Liquidation Price $8.9153
Remaining Deferred Sales Charge $0.2250


Cash 40177C304
Reinvest 40177C312
Fee/Cash 40177C320
Fee/Reinvest 40177C338


Deposit Information

Inception Date 11/15/2021
Non-Reoffered Date 5/16/2022
Mandatory Maturity Date 11/15/2023
Ticker Symbol CTMECX
Trust Structure Grantor
Inception Unit Price $10.0000
Inception Liquidation Price $9.7750
Deferred Sales Charge Dates Jun 2022
Jul 2022
Aug 2022
Term 2 Years
Number of Holdings 60

Historical Annual Dividend Distribution*

Per Unit $0.0000
Rate 0.00%
Rate Fee Based 0.00%

* 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.

Portfolio Holdings Analysis

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.

Fundamental Data

Weighted Average Price/Earnings (P/E) Ratio 22.04
Weighted Average Price/Book (P/B) Ratio 13.27
Weighted Average Market Cap (MM) $45,692.76

Market Cap & Style Breakdown

Value Growth N/A Total
Large-Cap 12.87% 13.27% -- 26.15%
Mid-Cap 11.19% 21.50% -- 32.68%
Small-Cap 8.48% 27.96% -- 36.44%
N/A -- -- 4.73% 4.73%
Total 32.54% 62.73% 4.73% 100.00%

Asset Class

US Common Stock 95.02%
Non US Common Stock 4.98%
Total 100.00%

Market Cap Breakdown

Style Breakdown

Sector & Industry Breakdown

Health Care 100.00%
 Biotechnology 43.80%
 Health Care Equipment & Supplies 18.37%
 Health Care Providers & Services 10.14%
 Life Sciences Tools & Services 17.17%
 Pharmaceuticals 10.51%
Total 100.00%

Country Breakdown

United States 95.02%
United Kingdom 1.72%
China 1.66%
Denmark 1.60%
Total 100.00%

Regional Breakdown

North America 95.02%
West Europe 3.32%
Asia 1.66%
Total 100.00%

Developed Status

Developed 98.34%
Emerging 1.66%
Total 100.00%

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 medical science companies that the Sponsor believes are innovative. A company will be deemed to be a medical science company if, at the time an investment is made in the company, 50% or more of such company’s sales, earnings or assets arise from or are dedicated to healthcare products or services or medical technology activities. Innovative medical science companies are companies considered to be developing novel products to address medical needs. The Trust seeks to select innovative medical science companies that may benefit from one or more of the trends positively impacting the health care industry. The U.S. listed common stocks held by the Trust may include the common stocks of U.S. and non-U.S. companies. The foreign securities that may be held by the Trust may include American Depositary Receipts (“ADRs”). The Trust may invest in companies of any market capitalization.

The Sponsor has partnered with Tekla Capital Management, LLC (“Tekla”) as portfolio consultant. Tekla will suggest securities for the portfolio that it believes possess the potential to achieve the Trust’s investment objective.

Selection Criteria

The Sponsor, with the assistance of Tekla, selects companies that it believes are innovative medical science companies that may benefit from one or more of the trends positively impacting the health care industry. The selection process begins with the universe of health care companies. The universe is then reduced by considering factors such as, but not limited to:

  • Valuation – whether a company may be attractively valued by reviewing metrics such as discounted cash flow, peak sales multiples, and market penetration models.
  • Catalysts – whether a company may increase in value from a scientific, clinical, regulatory or commercial event.
  • Novel Products – whether a company is expected to produce differentiated products and services relative what is available.
  • Attractive Health Care Subsectors – whether the company is in a subsector that may address the developing needs of patients.

Tekla Capital Management, LLC

Tekla Capital Management, LLC is a Registered Investment Adviser that specializes in healthcare sector investing. The firm conducts fundamental research in almost all subsectors within the healthcare area and generally seeks to invest in venture and public companies of all market capitalizations that produce novel products and services. Many members of Tekla’s research staff hold degrees in the biological sciences, engineering or medical areas. Several of the firm’s analytical staff hold business degrees and/or have significant drug development experience at public and private biopharma companies. Tekla also employs an experienced administrative staff.

Tekla Capital Management, LLC (fka Hambrecht & Quist Capital Management) has been independently owned since its spinout from JPMorgan/Chase in 2002. The firm manages four NYSE listed closed end funds with total assets over $3B.

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.
  • Because the Trust invests in innovative medical science companies, 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. Innovative medical science companies attempt to develop novel products to address medical needs. The research and development costs of bringing new products to market are substantial, and there is no guarantee that the product will ever come to market. Health care companies seeking government approval for medical products and services may have losses and may not offer proposed products for several years, if at all.
  • The Trust invests in ADRs and U.S.- listed foreign securities. The Trust’s investment in ADRs and U.S.-listed foreign securities presents additional risk. ADRs are issued by a bank or Trust company to evidence ownership of underlying securities issued by foreign corporations. 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 invests in securities issued by small- 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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