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Strategic Income Select Closed-End, 43  Ticker: FPQFKX
 
Description
The Strategic Income Select Closed-End Portfolio is a unit investment trust that seeks a high rate of current monthly income by investing in a diversified pool of closed-end funds that invest in U.S. and foreign common stocks and taxable bonds. Capital appreciation is a secondary objective.
Please note that there is no assurance the objective will be met.
 
Summary
Product Code: ST2Y43
Portfolio Status: Secondary
Initial Offer Date: 01/17/2020
Secondary Date: 02/13/2020
Portfolio Ending Date: 01/18/2022
Tax Structure: Regulated Investment Company
Distributions: Monthly
 
Initial Offer Price: $10.0000
NAV(*): $8.3595
POP(*): $8.5519
Remaining Deferred Sales Charge: $0.0000
* As of Trade Date: 08/14/2020 4:00pm ET
The Public Offering Price (POP) represents the net asset value per unit plus any applicable organization costs and sales charges. The Net Asset Value (NAV) represents the value per unit of a trust’s portfolio securities and other assets reduced by applicable deferred sales charges and other liabilities.

 Historical 12-Month Distribution of Trust Holdings:^
Rate (as of 8/14/2020) Per Unit (as of 8/10/2020)
8.46% $0.72390
^ There is no guarantee the issuers of the securities included in the trust will declare dividends or distributions in the future. The historical 12-month distribution per unit and historical 12-month distribution rate of the securities included in the trust are for illustrative purposes only and are not indicative of the trust's distribution or distribution rate. Due to the negative economic impact across many industries caused by the recent COVID-19 outbreak, certain issuers of the securities included in the trust may elect to reduce the amount of dividends and/or distributions paid in the future. As a result, the "Historical 12-Month Distribution Rate of Trust Holdings," which is based on the trailing twelve-month distributions paid by the securities included in a trust, will likely be higher, and in some cases significantly higher, than the actual distribution rate achieved by the trust. The historical 12-month distribution per unit is based on the weighted average of the trailing twelve month distributions paid by the securities included in the portfolio. The historical 12-month distribution rate is calculated by dividing the historical 12-month distributions by the trust's offering price. The historical 12-month distribution and rate are reduced to account for the effects of fees and expenses, which will be incurred when investing in a trust. Certain of the issuers may have reduced their dividends or distributions over the prior twelve months. The distribution per unit and rate paid by the trust may be higher or lower than the amount shown above due to certain factors that may include, but are not limited to, a change in the dividends or distributions paid by issuers, actual expenses incurred, or the sale of securities in the portfolio. For trusts that include funds, distributions may include realized short term capital gains, realized long-term capital gains and/or return of capital. PLEASE NOTE: For trusts that hold preferred securities, the historical distribution rate is calculated using only the holdings that have 12 months of distribution history. Any holdings without a 12 month history of dividends were excluded from the calculation.

 Holdings  Export Current Holdings | View Initial Holdings  
NameSymbolWeighting
 BlackRock Core Bond Trust BHK 3.46%
 Liberty All-Star Growth Fund, Inc. ASG 3.46%
 John Hancock Income Securities Trust JHS 3.38%
 MFS Charter Income Trust MCR 3.31%
 BlackRock Credit Allocation Income Trust BTZ 3.22%
 Calamos Strategic Total Return Fund CSQ 3.21%
 Western Asset Global High Income Fund Inc. EHI 3.17%
 Western Asset High Income Fund II Inc. HIX 3.16%
 Calamos Global Dynamic Income Fund CHW 3.09%
 Aberdeen Asia-Pacific Income Fund, Inc. FAX 3.07%
 MFS Multimarket Income Trust MMT 3.06%
 Neuberger Berman High Yield Strategies Fund Inc. NHS 3.00%
 Royce Value Trust, Inc. RVT 2.97%
 Wells Fargo Multi-Sector Income Fund ERC 2.93%
 Guggenheim Credit Allocation Fund GGM 2.93%
 Western Asset Emerging Markets Debt Fund Inc. EMD 2.92%
 Nuveen Core Equity Alpha Fund JCE 2.90%
 Virtus Global Multi-Sector Income Fund VGI 2.89%
 Credit Suisse Asset Management Income Fund, Inc. CIK 2.85%
 Aberdeen Global Income Fund, Inc. FCO 2.82%
 Liberty All-Star Equity Fund USA 2.80%
 Nuveen Global High Income Fund JGH 2.77%
 Delaware Enhanced Global Dividend and Income Fund DEX 2.76%
 Pioneer High Income Trust PHT 2.71%
 Voya Emerging Markets High Dividend Equity Fund IHD 2.69%
 Wells Fargo Global Dividend Opportunity Fund EOD 2.62%
 Ares Dynamic Credit Allocation Fund, Inc. ARDC 2.61%
 Nuveen Credit Strategies Income Fund JQC 2.55%
 Blackstone/GSO Long-Short Credit Income Fund BGX 2.55%
 Eaton Vance Tax-Advantaged Dividend Income Fund EVT 2.54%
 Nuveen Tax-Advantaged Dividend Growth Fund JTD 2.44%
 Aberdeen Global Premier Properties Fund AWP 2.34%
 Nuveen Diversified Dividend and Income Fund JDD 2.33%
 Nuveen Tax-Advantaged Total Return Strategy Fund JTA 2.28%
 LMP Capital and Income Fund Inc. SCD 2.21%
 
Total Number of Holdings:    35
Underlying Securities information represented above is as of 08/13/2020 but will vary with future fluctuations in the market.

Risk Considerations

Buy & Hold Risk – Taxable Trusts. 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.

Closed-End Fund Risk. Closed-end funds 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. Unlike open-end funds, which trade at prices based on a current determination of the fund's net asset value, closed-end funds frequently trade at a discount to their net asset value in the secondary market. Certain closed-end funds employ the use of leverage, which increases the volatility of such funds.

Covenant-Lite Loan Risk. Certain of the funds invest significantly in "covenant-lite" loans, which are loans made with minimal protections for the lender. Because covenant-lite loans are less restrictive on borrowers and provide less protection for lenders than typical corporate loans, the risk of default may be significantly higher.

COVID-19 Economic Impact Risk. The recent outbreak of a respiratory disease designated as COVID-19 was first detected in China in December 2019. The global economic impact of the COVID-19 outbreak is impossible to predict but is expected to disrupt manufacturing, supply chains and sales in affected areas and negatively impact global economic growth prospects. The COVID-19 outbreak has also caused significant volatility and declines in global financial markets, which have caused losses for investors. The impact of the COVID-19 outbreak may be short term or may last for an extended period of time, and in either case could result in a substantial economic downturn or recession.

Emerging Markets Risk. 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.

Foreign Securities Risk. An investment in securities of foreign issuers should be made with an understanding of the additional risks involved, such as currency fluctuations, political risk, withholding, the lack of adequate financial information, and exchange control restrictions impacting foreign issuers.

High-Yield or Junk Bonds Risk. Investing in high-yield securities or "junk" bonds should be viewed as speculative and you should review your ability to assume the risks associated with investments which utilize such securities. High-yield securities are subject to numerous risks, including higher interest rates, economic recession, deterioration of the junk bond market, possible downgrades and defaults of interest and/or principal. High-yield security prices tend to fluctuate more than higher rated securities and are affected by short-term credit developments to a greater degree.

Investment Grade Bonds Risk. Investment grade securities are subject to numerous risks including higher interest rates, economic recession, deterioration of the investment grade security market or investors' perception thereof, possible downgrades and defaults of interest and/or principal.

Preferred Securities Risk. Preferred securities are equity securities of the issuing company which pay income in the form of dividends. Preferred securities are typically subordinated to bonds and other debt instruments in a company's capital structure, and therefore will be subject to greater credit risk than those debt instruments.

Senior Loans Risk. The yield on senior loans will generally decline in a falling interest rate environment and increase in a rising interest rate environment. Senior loans are generally below investment grade quality ("junk" bonds). An investment in senior loans involves the risk that the borrowers may default on their obligations to pay principal or interest when due.

Volatility Risk. 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.

Additional Risk. For a discussion of additional risks of investing in the trust see the "Risk Factors" section of the prospectus.

Important Note. It is important to note that an investment can be made in the underlying funds directly rather than through the trust. These direct investments can be made without paying the trust's sales charge, operating expenses and organizational costs.

Operational Risk. As the use of Internet technology has become more prevalent in the course of business, the trust has become more susceptible to potential operational risks through breaches in cybersecurity.

You should carefully consider the trust's investment objectives, risks, and charges and expenses before investing. Contact your financial professional or call First Trust Portfolios, L.P. at 1.800.621.1675 to request a prospectus, which contains this and other information about the trust. Read it carefully before you invest.

This product information does not constitute an offer to sell, or a solicitation of an offer to buy securities in any state to any person to whom it is not lawful to make such an offer. Sales of any of these securities must include prospectus delivery and the services of a retail broker/dealer duly licensed in the appropriate states.

Not FDIC Insured, Not Bank Guaranteed and May Lose Value.

Fund Cusip Information
30312V705 (Cash)
30312V713 (Reinvest)
30312V721 (Cash-Fee)
30312V739 (Reinvest-Fee)
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The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
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