Banking Opportunity Portfolio, Series 27
Following extraordinary turmoil after the 2008 financial crisis, U.S. banks continue to make progress. According to the FDIC, for the second quarter 2017, quarterly net income for all insured
commercial banks and savings institutions totaled $48.3 billion. Through June 30, 2017, only 3.99% of insured banks were reported as unprofitable institutions, down from 4.37% a year earlier.
Thanks in part to consolidation, U.S. banks have achieved remarkable growth in assets. At year-end
2000, the 9,904 reporting FDIC-insured commercial banks and savings institutions had aggregate assets
of $7.5 trillion; as of June 30, 2017, the number of reporting banks had fallen to 5,011 while total assets
increased to $15.9 trillion, a gain of over 112% in assets.*
Improved efficiency, lower operating costs and increased volume are a few of the benefits of
consolidation. With the financial demands of an aging population, continued competition and the vast
number of financial choices, we believe consolidation will continue to play an important role as
institutions seek to grow their capabilities and gain market share.
This unit investment trust seeks above-average capital appreciation by investing in an
unmanaged, diversified portfolio of commercial banks; however, there is no assurance
the objective will be met.
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 1.800.621.1675 to
request a prospectus, which contains this
and other information about the portfolio.
FDIC Insured, Not Bank Guaranteed and May Lose Value.
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 an investment that is concentrated in banking company stocks
involves additional risks, including limited diversification. The banking industry is subject to the
adverse effects of volatile interest rates, economic recession, increased competition from new
entrants in the field, and potential increased regulation.
An investment in a portfolio containing small-cap and mid-cap companies is subject to additional risks, as the share prices of small-cap companies and
certain mid-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.
Although this portfolio terminates in approximately 15 months,
the strategy is long-term. Investors should consider their ability
to pursue investing in successive portfolios, if available. There
may be tax consequences unless units are purchased in an IRA or
other qualified plan.
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.