Automated Quantitative Analysis, Series 15
The Automated Quantitative Analysis (AQA®) Portfolio, Series 15, is structured as a unit investment trust. Its objective is to seek above-average capital appreciation
over its life; however, there is no assurance the investment objective will be met. The portfolio terminates approximately two years from the initial date of deposit
and is designed as a "buy and hold" investment.
The portfolio contains a selection of stocks from the AQA® universe. The stocks chosen are those considered by AQA® to be the most undervalued at the time the
portfolio was selected. An "undervalued" stock is a company selling at a price significantly below its intrinsic value, as identified by AQA®.
One problem for investors seeking undervalued stocks is calculating intrinsic value. Investors typically don't have the tools or time to determine this type of
information. And if they did, what measure would they use? P/E ratios? Anticipated future growth? Earnings history?
That is why Hilliard Lyons created the Automated Quantitative Analysis Portfolio, Series 13. It is a portfolio of stocks selected using an established methodology
developed three decades ago. Hilliard Lyons believes quantitative analysis is the common language through which all public companies may be compared, but what
differentiates AQA® is the type of analysis and the soundness of the methodology.
How AQA® Works
AQA® uses public filings of balance sheets and income statements to calculate a value for each stock.
Analysis of this data is automated through the AQA® software to reproduce the recognition process of
undervalued stocks at a faster rate than the marketplace. Based on AQA®'s analysis of each ratio's influence
on price movement, stocks are ranked according to the discrepancy between AQA®'s calculation of their
current worth and current market price. The companies calculated to be most undervalued await investor
recognition through an efficient market, over time. We believe this gives an investment in the most undervalued
stocks in the AQA® universe the advantage of time because the process accelerates the recognition
of a stock's worth, allowing investors to own an AQA®-undervalued stock that will offer capital appreciation
over time, in our opinion.
- Representation in a broad cross-section of American industry.
- More heavily weighted toward the capitalization group currently most out of favor.
- Well-run companies with what AQA® calculates to have proven value and which have been overlooked by
In the normal course of events, we would expect the average holding period of the stocks in this portfolio (the
average number of months it takes for a stock to move from being undervalued to being efficiently priced) to
coincide with the portfolio's optimum rate of return over time, and this is reflected in the two-year maturity
of this portfolio.
|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 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 two-year unit investment trust (“UIT”) should be made with an understanding of the risks, including the risk that the financial condition of the securities’
issuers, or the general condition of the stock market (and, therefore, the value of the trust units) may worsen. The value of the securities held by the portfolio may be subject to declines
or increased volatility due to changes in performance or perception of the issuers. No program can predict with certainty which stocks will go up in price. This UIT is a buy and hold
strategy and investors should consider their ability to hold the trust until maturity. There may be tax consequences unless units are purchased in an IRA or other qualified plan.
The portfolio contains a foreign-issued security, which is subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information,
and exchange control restrictions impacting foreign issuers.
The portfolio contains securities in small-cap and mid-cap companies which are subject to additional risks, as the share prices of small-cap and 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
You should be aware that the portfolio is concentrated in health care, industrials and information technology company stocks and that a concentrated portfolio is subject to additional
risks, including limited diversification. The companies engaged in the health care sector are subject to fierce competition, high research and development costs, governmental regulations,
loss of patent protection, and changing consumer spending trends. In addition, passage of the Health Care and Education Affordability Reconciliation Act of 2010, is expected to have
significant implications for companies in the health care sector. 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 the technology sector are subject to
fierce competition, high research and development costs, and their products and services may be subject to rapid obsolescence. Technology company stocks, especially those which are
Internet-related, may experience extreme price and volume fluctuations that are often unrelated to their operating performance.