Global Target 15 Portfolio, 2nd Quarter 2017 Series
Global Target 15 2Q '17 - Term 7/9/18 (Global Target 15 Portfolio) is a unit
investment trust which invests in a fixed portfolio of stocks for approximately
15 months. The portfolio adheres to a strategy of investing in an approximately
equally-weighted portfolio of the five lowest-priced of the ten highest dividend-yielding
stocks from each of the Dow Jones Industrial Average (DJIA), Hang Seng Index
(HSI), and the Financial Times Industrial Ordinary Share Index (FT Index). The
portfolio seeks above-average total return; however, there is no assurance the
objective will be met.
The strategy is based on these important elements:
- Higher Dividend Yields -Blue-chip stocks with higher dividend yields may
indicate that the stocks are out of favor or may be undervalued.
- Industry Leaders -The companies included in the DJIA, HSI, and the FT Index
are some of the most widely-held and well-capitalized companies in their markets.
If this strategy had been applied since 1987, investors would have realized
higher total returns than by investing in an even combination of the DJIA, HSI,
and the FT Index (combined indices). It is important to note that the past performance
of the strategy is hypothetical and it is not indicative of the future performance
of the Global Target 15 Portfolio. Although this unit investment trust 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
|Not FDIC Insured Not Bank Guaranteed May Lose Value
||Average Annual Total Returns*
|Annual Total Returns
Past performance is no guarantee of future results and the actual current performance of the
portfolio may be lower or higher than the hypothetical performance of the strategy. Hypothetical
returns for the strategy in certain years were significantly higher than the returns of the Combined
Indices.Hypothetical strategy returns were the result of certain market factors and events which
may not be replicated in the future.You can obtain performance information which is current
through the most recent month-end by calling First Trust Portfolios L.P. at 1-800-621-1675 option 2.
Investment return and principal value of the portfolio will fluctuate causing units of the portfolio,
when redeemed, to be worth more or less than their original cost.
Simulated strategy returns are hypothetical, meaning that they do not represent actual trading, and, thus, may not reflect material economic and market factors, such as liquidity constraints, that may have had an impact on actual decision making. The hypothetical performance is the retroactive application of the strategy designed with the full benefit of hindsight. Strategy returns reflect a sales charge of 2.95% in the first year, 1.95% in subsequent years, estimated annual operating expenses of 0.274%, plus organization costs, but not taxes or commissions paid by the portfolio to purchase securities. Returns assume that all dividends received during a year are reinvested monthly (except the HSI from 12/31/86 through 12/31/92 which reflect price appreciation only). Returns for the foreign indices have been adjusted to take into account the effect of currency exchange rate fluctuations against the U.S. dollar.Actual portfolio performance will vary from that of investing in the strategy stocks because it may not be invested equally in these stocks and may not be fully invested at all times. It is important to note that the strategy may underperform the combined indices in certain years and may produce negative results.
The DJIA consists of U.S. stocks chosen by the editors of The Wall Street
Journal as being representative of American industry.The HSI is an unmanaged
index of stocks currently listed on the Stock Exchange of Hong Kong Ltd.The
FT Index is an unmanaged index of stocks chosen by the editors of The Financial
Times as being representative of the British industry and commerce.None
of the indices can be purchased directly by investors.
Standard Deviation is a measure of price variability (risk). A higher degree of variability indicates more volatility and therefore greater risk.
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. Read it carefully
before you invest.
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 financials sector which involves additional risks,
including limited diversification. The companies engaged in the
financials sector are subject to the adverse effects of volatile
interest rates, economic recession, decreases in the availability
of capital, 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.
An investment in a portfolio containing equity securities of foreign issuers
is subject to additional risks, including currency fluctuations, political risks,
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 liquid, less regulated and more volatile than
the U.S. and developed foreign markets.
Because the portfolio is concentrated in securities issued by
companies headquartered in China, Hong Kong and the United
Kingdom, the portfolio may present more risks than a portfolio
which is broadly diversified over several regions.
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.