Income Allocation Closed-End Portfolio, 2nd Quarter 2019 Series
Ticker Symbol: FGNIHX
|40 Holdings (As of Day of Deposit)
|General Equity Funds
||Eaton Vance Tax-Advantaged Dividend Income Fund
||Eaton Vance Tax-Managed Diversified Equity Income Fund
||Liberty All-Star Equity Fund
||Liberty All-Star Growth Fund, Inc.
||Nuveen Core Equity Alpha Fund
||Royce Micro-Cap Trust, Inc.
||Royce Value Trust, Inc.
||Virtus Total Return Fund Inc.
|High-Yield Bond Funds
||Barings Global Short Duration High Yield Fund
||BlackRock Corporate High Yield Fund, Inc.
||Dreyfus High Yield Strategies Fund
||Ivy High Income Opportunities Fund
||PGIM Global High Yield Fund Inc.
||PGIM High Yield Bond Fund, Inc.
||Wells Fargo Income Opportunities Fund
||Western Asset High Income Fund II Inc.
|Investment Grade Bond Funds
||BlackRock Core Bond Trust
||Invesco Bond Fund
||Western Asset Premier Bond Fund
|Loan Participation Funds
||Apollo Senior Floating Rate Fund Inc.
||Ares Dynamic Credit Allocation Fund, Inc.
||Blackstone/GSO Long-Short Credit Income Fund
||Blackstone/GSO Senior Floating Rate Term Fund
||Eaton Vance Senior Floating-Rate Trust
||Nuveen Credit Strategies Income Fund
||Nuveen Floating Rate Income Opportunity Fund
||Nuveen Senior Income Fund
||THL Credit Senior Loan Fund
|Specialized Equity Funds
||Duff & Phelps Select MLP and Midstream Energy Fund Inc.
||Neuberger Berman Real Estate Securities Income Fund Inc.
||Tekla Life Sciences Investors
|World Equity Funds
||Aberdeen Australia Equity Fund, Inc.
||Eaton Vance Tax-Managed Global Diversified Equity Income Fund
||Voya Emerging Markets High Dividend Equity Fund
|World Income Funds
||Aberdeen Asia-Pacific Income Fund, Inc.
||Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
||Nuveen Global High Income Fund
||Templeton Emerging Markets Income Fund
||Templeton Global Income Fund
||Western Asset Emerging Markets Debt Fund Inc.
* As of the close of business on 4/8/19.
Market values are for reference only and are not indicative of your individual cost basis.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
|Initial Offering Date
|Initial Public Offering Price
||$10.00 per Unit
|Portfolio Ending Date
|Historical 12-Month Distribution Rate of Trust Holdings:*
|Fee Accounts Cash CUSIP
|Fee Accounts Reinvestment CUSIP
*There is no guarantee the issuers of the securities included in the trust will declare dividends or
distributions in the future. The historical distribution rate of the securities included in the trust is
for illustrative purposes only and is not indicative of the trust’s distribution rate. The historical
distribution rate is calculated by dividing the weighted average of the trailing twelve month
distributions paid by the securities included in the portfolio by the trust’s offering price and is
reduced to account for the effects of fees and expenses which will be incurred when investing in a
trust. Distributions may include realized short term capital gains, realized long-term capital gains
and/or return of capital. Certain of the issuers may have reduced their dividends or distributions
over the prior twelve months. The distribution 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.
|Sales Charges (based on a $10 public offering
|Transactional Sales Charges:
|Creation & Development Fee:
|Maximum Sales Charge:
The deferred sales charge will be deducted in three monthly installments commencing
When the public offering price is less than or equal to $10.00 per unit, there will be no initial sales charge. If
the price exceeds $10.00 per unit, you will pay an initial sales charge.
|Maximum Sales Charge:
The maximum sales charge for investors in fee accounts consists of the creation and development fee.
Investors in fee accounts are not assessed any transactional sales charges. Standard accounts sales charges
apply to units purchased as an ineligible asset.
The creation and development fee is a charge of $.050 per unit collected at
the end of the initial offering period. If the price you pay exceeds $10.00 per
unit, the creation and development fee will be less than 0.50%; if the price
you pay is less than $10.00 per unit, the creation and development fee will exceed
In addition to the sales charges listed, UITs are subject to annual operating expenses and organization costs.
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 associated with an investment in a portfolio of closed-end
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.
Certain of the closed-end funds invest in common stocks.
Common stocks are subject to risks 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.
Certain of the closed-end funds invest in options. Options are
subject to various risks including that their value may be
adversely affected if the market for the option becomes less
liquid or smaller. In addition, options will be affected by changes
in the value and dividend rates of the stock subject to the
option, an increase in interest rates, a change in the actual and
perceived volatility of the stock market and the common stock
and the remaining time to expiration.
Certain of the closed-end funds invest in senior loans. The yield
on closed-end funds which invest in 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.
Certain of the closed-end funds invest in high-yield securities or
“junk” bonds. Investing in high-yield securities 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.
Certain of the closed-end funds invest in investment grade
securities. Investment grade bonds 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.
Certain of the closed-end funds invest in floating-rate securities.
A floating-rate security is an instrument in which the interest
rate payable on the obligation fluctuates on a periodic basis
based upon changes in an interest rate benchmark. As a result,
the yield on such a security will generally decline in a falling
interest rate environment, causing the trust to experience a
reduction in the income it receives from such securities.
Certain of the closed-end funds invest in securities issued by
foreign issuers. Such securities are subject to certain risks,
including 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 liquid, less regulated and more
volatile than the U.S. and developed foreign markets.
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.
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
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 funds directly
rather than through the trust. These direct
investments can be made without paying the
trust’s sales charge, operating expenses and
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
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.