Alternative Energy Portfolio, Series 15
At the turn of the 21st century, almost 75 million people were being added
to the world every year.That's about a quarter of the entire U.S. population.
In the future,we expect the vast majority of population growth to take place
in the developing world.1 While global growth has placed stress on existing
energy sources, it has also forced us to consider the impact future growth will
have on our resources.
The Energy Information Administration has projected a steady increase in oil
demand through 2035.They anticipate world oil prices to rise to higher levels
due to the growth in world demand with limited access to resources. Because
natural gas burns cleaner than oil and is more economical to produce than oil,
natural gas consumption is on the rise as well. Natural gas consumption is anticipated
to increase from 108 trillion cubic feet in 2007 to 156 trillion cubic feet
by 2035.2 As the energy markets tighten and
experience supply disruptions, political instability and a decline in production,
the need for energy alternatives continues to gain attention. For economic and
environmental reasons, companies are now focusing on new ways to meet energy
needs.
1 PBS Nova,World in Balance
2 Energy Information Administration
Consider These Factors
- In October 2008, the Emergency Economic Stabilization Act of 2008 was signed
into law.This bill will extend tax credits for solar energy systems and fuel
cells to 2016. New tax credits were also established for small wind energy
systems and plug-in hybrid electric vehicles.3
- Solar energy, although still relatively expensive, is often the cheapest
alternative for powering remote regions. The market for solar energy is anticipated
to grow from a $36.1 billion industry in 2009 to approximately $116.5 billion
by 2019.4
- In addition to solar industry growth, the market for biofuels is forecast
to grow from $44.9 billion to $112.5 billion and the market for wind power
is expected to grow from $63.5 billion to $114.5 billion from 2009 to 2019.
Together, these three benchmark technologies, which equaled $124.8 billion
in 2008 and expanded 15.8 percent to $144.5 billion in 2009, are projected
to grow to $343.4 billion within a decade.5
3 ENERGY STAR
4,5 Clean Edge
Transportation Needs
One major area that is already using alternative energy is the transportation
sector. Hybrid vehicles, which are gas-electric powered, are gaining acceptance
and are becoming more competitively priced.
The automotive industry continues to forge ahead, looking to perfect new technologies
like hydrogen-powered vehicles that rely on fuel cells. Fuel cells are electrochemical
energy conversion devices that convert hydrogen and oxygen into water which
then produces electricity and heat in order to power the vehicle.
Portfolio Objective
The objective of this unit investment trust is to provide investors the potential
for above-average capital appreciation; however, there is no assurance the objective
will be met. The portfolio terminates approximately two years from the initial
date of deposit.
| Not FDIC Insured • Not Bank Guaranteed • May Lose Value |
You should consider the portfolio's investment objectives, risks, and
charges and expenses carefully before investing. Contact your financial advisor
or call First Trust Portfolios, L.P. at the number listed below to request a
prospectus, which contains this and other information about the portfolio. Read
it carefully before you invest.
Risk Considerations:
An investment in this unmanaged unit investment trust should be made with an
understanding of the risks involved with owning common stocks, such as an economic
recession and the possible deterioration of either the financial condition of
the issuers of the equity securities or the general condition of the stock market.
You should be aware that the portfolio is concentrated in stocks in the industrials
sector making it subject to additional risks, including limited diversification.The
companies engaged in the industrials sector are subject to certain risks, including
a deterioration in the general state of the economy, intense competition, domestic
and international politics, excess capacity and changing spending trends.
The companies engaged in developing alternative energy sources are subject
to certain risks, including price and supply fluctuations caused by international
politics, energy conservation, taxes, price controls, and other regulatory policies
of various governments.There is no assurance that the projections stated herein
will be realized.
An investment in a portfolio containing small-cap companies is subject to additional
risks, as the share prices of small-cap companies are often more volatile than
those of larger companies due to several factors, including limited trading
volumes, products, financial resources,management inexperience and less publicly
available information.
An investment in foreign equities should be made with an understanding of the
additional risks involved with foreign issuers, such as currency fluctuations,
political risk, withholding, the lack of adequate financial information, and
exchange control restrictions impacting foreign issuers. Risks associated with
investing in foreign securities may be more pronounced in emerging markets where
the securities markets are substantially smaller, less developed, less liquid,
less regulated, and more volatile than the U.S. and developed foreign markets.
The value of the securities held by the trust may be subject to steep declines
or increased volatility due to changes in performance or perception of the issuers.