U.S. Infrastructure Portfolio, Series 12
A sound infrastructure is fundamental to the quality of life and the economic growth and development
of a community. Infrastructure assets help provide products and services that have become essential to
everyday life such as water and wastewater systems, roads, railways, airports, utilities, hospitals, schools
and communications systems. Developing countries realize that infrastructure will play a key role in
economic development and in their ability to attain projected growth rates. However, the need to
improve infrastructure extends beyond rapidly developing countries. The U.S., while considered to be a
world leader in many aspects, lags other developed regions, especially Europe, when it comes to the
condition of its aging infrastructure. The U.S. Infrastructure portfolio invests in companies that provide
products or services that aid the development and maintenance of our country's infrastructure system as
well as companies that tend to benefit from an increasing economic growth rate.
The Aging of America
Infrastructure funding gaps in the U.S. are immense in comparison
to the rest of the world. Total investment needs for America's
infrastructure are estimated to be approximately $4.59 trillion from
2016 through 2025. Our aging infrastructure comes with additional
costs in terms of economic growth
- The U.S. has 614,387 bridges of which four in 10 are 50
years or older. Many of these bridges are approaching the end of
their design life. The most recent estimate puts the nation's
backlog of bridge restoration needs at $123 billion.
- One out of every five miles of highway pavement is considered to
be in poor condition. Our roads are chronically underfunded and
are becoming more dangerous.
- Our nation continues to underinvest in school facilities, leaving an
estimated $38 billion per year gap in funding. As a result, 24% of
public school buildings were rated as being in fair or poor condition.
- More than 56 million new users are anticipated to be connected to
centralized wastewater treatment systems over the next two
decades. An estimated $271 billion is needed to meet current and
- Despite increasing demand, the nation's transit systems have been
continually underfunded. This has resulted in aging infrastructure
and a $90 billion rehabilitation backlog.
Source: American Society of Civil Engineers
This unit investment trust seeks above-average capital appreciation; however,
there is no assurance the objective will be met.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
You should consider the portfolio's investment objective, 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
You should be aware that the portfolio is concentrated in stocks
in the industrials sector which involves 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.
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
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.
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
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.