The UBS Opportunistic Equity Income: 2020-1, Series 20 ("Trust") seeks to provide dividend income with the secondary objective of long-term capital appreciation.
|Wrap Fee Price||$8.7054|
|Remaining Deferred Sales Charge||$0.1350|
|Mandatory Maturity Date||6/11/2021|
|NASDAQ Ticker Symbol||CUBCTX|
|Inception Unit Price||$10.0000|
|Inception Liquidation Price||$9.8650|
|Deferred Sales Charge Dates||
|Number of Holdings||32|
|Historical Annual Dividend Distribution*||$0.3320|
* 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||24.49|
|Weighted Average Price/Book (P/B) Ratio||4.24|
|Weighted Average Market Cap (MM)||$158,128.83|
|US Common Stock||89.00%|
|Non US Common Stock||3.75%|
|Semiconductors & Semiconductor Equipment||8.57%|
|Health Care Equipment & Supplies||2.83%|
|Food & Staples Retailing||4.15%|
|Hotels Restaurants & Leisure||5.96%|
|Textiles Apparel & Luxury Goods||2.96%|
|Aerospace & Defense||7.10%|
|Road & Rail||2.30%|
|Equity Real Estate Investment Trusts (REITs)||7.25%|
|Diversified Telecommunication Services||4.72%|
|Oil Gas & Consumable Fuels||3.06%|
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 equity securities that are included in the UBS Financial Services Inc.’s (“UBS”) “Opportunistic Equity Income” 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 “Opportunistic Equity Income” stock list. However, there is no assurance that the selected securities will continue to pay dividends or that the Trust will achieve its investment objective.
As a result of this strategy, the Trust invests significantly 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 “Opportunistic Equity Income” criteria begins with a universe of all dividend-paying equity securities traded in the United States as of the date of the security selection. As a result, the foreign securities that may be held by the Trust may include U.S.-listed foreign securities, American Depositary Receipts (“ADRs”) or Global Depositary Receipts (“GDRs”). In addition, the Trust may invest in real estate investment Trusts (“REITs”). The universe of securities is reduced by applying the following quantitative criteria:
• Minimum Market Capitalization. Each security must have a market capitalization greater than $2.5 billion;
• Above Average Dividend Yields. Each security must have current yields equal to or greater than the Russell 1000® Value Index market yield;
• Available Free Cash Flow. 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. Among other factors, each security must have a minimum rating of: 1) Neutral by UBS Global Research, a platform within UBS; 2) Bellwether by UBS Chief Investment Office Global Wealth Management, a platform within UBS; 3) an S&P Quality Ranking of B+ or higher; or 4) an exchange listed, consensus Buy/Buy Hold rating with at least three Buy/Buy Hold ratings. If there is a split rating in which the stock is rated Sell or Sell/Hold by at least one analyst, the number of Buy or Buy/Hold ratings must be greater than or equal to the number of Sell or Sell/Hold ratings.
Companies are identified for inclusion in the UBS “Opportunistic Equity Income” stock list through a qualitative analysis based on, but not limited to, the following criteria:
• Valuation. The selection process favors companies demonstrating attractive valuations using factors, including but not limited to, earnings per share.
• Fundamentals. The selection process favors companies with positive fundamental reviews including, but not limited to, a history of stable operating margins, returns on equity and net debt/EBITDA.
• Potential Opportunities. The selection process favors companies that may have stock specific catalysts.
The UBS “Opportunistic Equity Income” stock list does not take into consideration the personal circumstances, financial situation, investment horizon or individual loss capacity of any investor and, hence, is not to be seen as providing comprehensive investment advice. The list does not refer to creating a fully diversified portfolio, is not a guarantee of future performance, and therefore should only be viewed as part of an investor's full portfolio.
The securities in the final portfolio for the Trust 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.
INDEX DEFINITION: The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
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.
• 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 American Depositary Receipts (“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.
• 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.
• 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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