Sabrient Defensive Equity Portfolio, Series 12
Sabrient Systems, LLC ("Sabrient") is an independent equity research firm that builds powerful
investment strategies by using a fundamentals-based, quantitative approach. The strategies are
used to create rankings and ratings on more than 7,000 stocks, indices, sectors, and ETFs. Their
models are designed to identify those companies that are anticipated to outperform or
underperform the market.
Historically, certain stocks have been able to outperform the market during periods in which the
market itself is declining. The Sabrient Defensive Equity Portfolio is a unit investment trust that
seeks to find companies that Sabrient believes are positioned to perform well in environments of
falling stock prices but also those companies that have the potential to provide solid performance
in rising markets. The stocks in the portfolio are selected by applying a seven-step investment
strategy process developed by Sabrient.
This unit investment trust seeks above-average capital appreciation; however, there is
no assurance the objective will be met. 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.
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 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 information
technology sector which involves additional risks, including limited diversification. The
companies engaged in the information 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.
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.
One of the securities is a Real Estate Investment Trust (REIT). Companies involved in the real
estate industry are subject to changes in the real estate market, vacancy rates and competition,
volatile interest rates and economic recession.
One of the securities in the trust is a closed-end fund which has elected to be treated as a
business development company (BDC). Closed-end funds and BDCs are subject to various risks,
including management's ability to meet the fund's investment objective, and to manage the
fund's portfolio when the underlying securities are redeemed or sold, during periods of market
turmoil and as investors' perceptions regarding the funds or their underlying investments
change. Closed-end funds and BDCs may trade at a discount from their net asset value in the
secondary market. Closed-end funds and BDCs may employ the use of leverage which increases
the volatility of such funds.
An investment in foreign securities should be made with an understanding of the additional
risks involved with foreign issuers, such as currency and interest rate fluctuations,
nationalization or other adverse political or economic developments, lack of liquidity of certain
foreign markets, 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.
For a discussion of additional risks of investing in the trust, see the "Risk Factors" section of the
It is important to note that an investment can be made in the underlying fund directly rather
than through the trust. The direct investment can be made without paying the trust's sales
charge, operating expenses and organizational costs.
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.