The UBS Check-A-Month List: Equity Advisory Group, 2015-3, Series 3 ("Trust") seeks to provide dividend income with the secondary objective of long-term 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 equity securities that are included in the UBS Financial Services’ (“UBS”) “Check-A-Month” stock list. The Trust seeks to provide dividend income and capital appreciation by investing in a portfolio of common stocks of foreign and/or domestic companies identified by UBS that meet the criteria for its “Check-A-Month” stock list. The list intends to provide above average dividend income with a specific focus on laddering dividend payments so that investors may receive monthly income throughout the year. However, there is no assurance that the selected securities will pay dividends, that investors will receive monthly distributions or that the Trust will achieve its investment objective. As a result of this strategy, the Trust is concentrated in the consumer products sector.
The selection process for the final portfolio follows a disciplined process, which includes both quantitative screening and qualitative analysis. The UBS “Check-A-Month” criteria begins with a universe of all dividend-paying companies traded in the United States as of the date of the security selection. The foreign securities that may be held by the Trust may include American Depositary Receipts (“ADRs”) or Global Depositary Receipts (“GDRs”). The universe of securities is reduced by applying the following quantitative criteria:
• Minimum Market Capitalization. Each security must have a total market capitalization greater than $2 billion;
• Above Average Yields. Each security must have current yields greater than the S&P 500 market yield;
• Free Cash Flow Yields. Each security must have free cash flow. The free cash flow yield criteria is waived for banks, where it is not a relevant measure, and for companies in the utilities sector, where it is a skewed measure of the ability to pay the dividend as a result of investment capital spending needs and debt levels within the industry; and
• UBS Research Rating. Each security must have a minimum rating of Neutral by UBS Research or Market Perform by UBS Chief Investment Office Wealth Management Research. If there is a split rating in which the stock is rated Sell/Underperform by one platform, the secondary platform rating must be Buy/Outperform in order to be considered for inclusion.
From this sub-universe, companies are identified for inclusion in the portfolio through a qualitative analysis based on, but not limited to, the following criteria:
• Sustainable Dividend Payout Ratio. The selection process favors companies that have demonstrated the ability to maintain sustainable dividend payout ratios.
• Debt/Capital Ratio. The selection process favors companies that have demonstrated reasonable debt to capital ratios.
• Dividend Stability. The selection process favors companies that have demonstrated a ten-year history of maintaining stable dividends.
• Valuation. The selection process favors companies demonstrating favorable valuations.
• Fundamentals. The selection process favors companies with positive fundamental reviews including, but not limited to, revenue opportunities, earnings growth and stock specific catalysts.
The securities in the final portfolio will be equally weighted as of the security selection date and will not be concentrated in any Global Industry Classification Standard sector.
UBS Financial Services
UBS is a corporation organized under the laws of the State of Delaware and is a member firm of the New York Stock Exchange, Inc. as well as other major securities and commodities exchanges and is a member of the Financial Industry Regulatory Authority, Inc.
DISCLAIMERS. The Trust is not sponsored or endorsed by UBS and UBS makes no representation or warranty, express or implied, to the unit holders of the Trust or any member of the public regarding the advisability of investing in units of the Trust. UBS’s only relationship to the Sponsor or the Trust is the licensing of certain trademarks and the development UBS Check-A-Month List: Equity Advisory Group 2015-1, which is determined and composed by UBS without regard to the Trust or its unit holders. UBS has no obligation or liability in connection with the investment decisions made by the Sponsor or Trust or in connection with administration of the Trust.
Risks and Other Considerations
This Trust is not being offered for sale. This data is for informational purposes only.
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.
• The Trust is concentrated 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.
• 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 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.
© 2020 Guggenheim Investments. All Rights Reserved.
Research our firm with FINRA Broker Check.
• Not FDIC Insured • No Bank Guarantee • May Lose Value
This website is directed to and intended for use by citizens or residents of the United States of America only. The material provided on this website is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation. Investing involves risk, including the possible loss of principal.