Strategic Income Select Closed-End Portfolio, Series 54
Ticker Symbol: FZNEAX
|35 Holdings (As of day of Deposit)
|General Equity Funds (17.15%):
||Eaton Vance Tax-Managed Buy-Write Income Fund
||John Hancock Tax-Advantaged Dividend Income Fund
||Liberty All-Star Growth Fund, Inc.
||Nuveen Core Equity Alpha Fund
||Royce Micro-Cap Trust, Inc.
||Royce Value Trust, Inc.
|High-Yield Bond Funds (8.57%):
||Barings Global Short Duration High Yield Fund
||BNY Mellon High Yield Strategies Fund
||Credit Suisse High Yield Bond Fund
|Income & Preferred Stock Funds (8.57%):
||Flaherty & Crumrine Dynamic Preferred and Income Fund Incorporated
||John Hancock Preferred Income Fund
||Nuveen Preferred & Income Opportunities Fund
|Investment Grade Bond Funds (8.57%):
||BlackRock Credit Allocation Income Trust
||Insight Select Income Fund
||Western Asset Premier Bond Fund
|Loan Participation Funds (8.57%):
||Blackstone Strategic Credit Fund
||Invesco Senior Income Trust
||Nuveen Credit Strategies Income Fund
|Multi-Sector Bond Funds (17.16%):
||Credit Suisse Asset Management Income Fund, Inc.
||Franklin Limited Duration Income Trust
||KKR Income Opportunities Fund
||MFS Charter Income Trust
||MFS Intermediate Income Trust
||Virtus Global Multi-Sector Income Fund
|Specialized Equity Funds (8.57%):
||GAMCO Global Gold Natural Resources & Income Trust
||John Hancock Hedged Equity & Income Fund
||Wells Fargo Global Dividend Opportunity Fund
|World Equity Funds (8.55%):
||Aberdeen Emerging Markets Equity Income Fund, Inc.
||Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund
||Voya Emerging Markets High Dividend Equity Fund
|World Income Funds (14.29%):
||Aberdeen Asia-Pacific Income Fund, Inc.
||Nuveen Global High Income Fund
||Stone Harbor Emerging Markets Total Income Fund
||Western Asset Emerging Markets Debt Fund Inc.
||Western Asset Global High Income Fund Inc.
* As of the close of business on 10/14/21.
Market values are for reference only and are not indicative of your individual
|Not FDIC Insured Not Bank Guaranteed May Lose Value
|Initial Date of Deposit
|Initial Public Offering Price
||$10.00 per Unit
|Portfolio Ending Date
|Historical 12-Month Distribution Rate of Trust Holdings:*
|Historical 12-Month Distribution Per Unit:*
|Fee Account Cash CUSIP
|Fee Account 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 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. The historical 12-month distribution per unit is based on the weighted
average of the trailing 12-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 12 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.
|Sales Charges (based on a $10 public offering
|Transactional Sales Charges:
|Creation & Development Fee:
|Maximum Sales Charge:
|Maximum Sales Charge:
The deferred sales charge will be deducted in three monthly installments commencing 1/20/22.
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.
The maximum sales charge for investors in fee accounts consists of the C&D 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 C&D fee is a charge of $0.050 per unit collected at the end of the initial offering period. If the price you pay exceeds $10.00 per unit, the C&D fee will be less than 0.50%; if the price you pay is less than $10.00 per unit, the C&D fee will exceed 0.50%.
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 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 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 funds. 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 from their net asset value in the secondary market. Certain
closed-end funds in which the portfolio invests 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 certain
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 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 floating-rate securities pay interest based on LIBOR. The United Kingdom’s Financial Conduct
Authority, which regulates LIBOR, will cease making LIBOR available as a reference rate over a phase-out
period that will begin immediately after December 31, 2021. The unavailability or replacement of LIBOR may
affect the value, liquidity or return on certain portfolio investments. Any potential effects of the transition
away from LIBOR can be difficult to ascertain, and they may vary depending on a variety of factors and they
could result in losses to the portfolio.
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
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.
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 loan securities. 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 covenant-lite loans which contain fewer or no
maintenance covenants and may hinder the closed-end funds' ability to reprice credit risk and
mitigate potential loss especially during a downturn in the credit cycle.
All 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.
About one year after the United Kingdom officially departed the European Union (commonly referred to as
“Brexit”), the United Kingdom and the European Union reached a trade agreement that became effective
on December 31, 2020. It is not currently possible to determine the extent of the impact the Brexit trade
agreement may have on the portfolio’s investments and this certainly could negatively impact current and
future economic conditions in the United Kingdom and other countries, which could negatively impact the
value of the portfolio’s investments.
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
The COVID-19 global pandemic has caused significant volatility and declines in global financial markets,
causing losses for investors. The development of vaccines has slowed the spread of the virus and allowed
for the resumption of “reasonably” normal business activity in the United States, although many countries
continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective
against emerging variants of the disease.
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
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.
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.
For a discussion of additional risks of investing
in the Trust see the “Risk Factors” section of