American Agenda, Series 10
During his campaign, President Trump placed an emphasis on policies designed to stimulate job creation and economic growth. Prudent investors know there is a significant difference between what
is said in campaign speeches and what a new administration accomplishes once elected. Since President Trump has been in the Oval Office, several themes have emerged:
This unit investment trust seeks above-average capital appreciation; however, there is
no assurance the objective will be met.
Repatriation Of Funds|
In financial terms, repatriation is the process of converting a foreign
currency into the currency of one's own country. President Trump wants American companies to bring trillions
of dollars in offshore cash back to the U.S. in hopes that the money be used to fund a manufacturing
renaissance in the U.S.1
Lower Corporate Tax Rates | One of the President’s plans was to reduce the U.S. corporate tax
rate, which is one of the highest in the world. In December 2017, the Tax Cuts and Jobs Act was passed
lowering the corporate income tax rate permanetly to 21% starting in 2018. A lower tax rate could
encourage companies to repatriate some of the profits they’ve kept abroad. Lower corporate taxes also
have the potential to encourage investment and hiring, and may give companies the ability to increase
dividends and buy back shares.
Business Friendly Regulatory Environment | In an effort to make America more business
friendly, President Trump seeks to make vast cuts in regulations for corporate America. He believes that
the economy will grow at a faster pace if businesses are freed from the long arm of the government.2
U.S. Energy Independence | The Trump Administration is committed to energy policies that lower
costs and free us from dependence on foreign oil.3 According to a 2019 report released by the U.S. Energy
Administration, the U.S. is anticipated to become a net energy exporter in 2020.
The American Agenda Portfolio is a unit investment trust which invests in 30 companies with a significant
presence in the U.S. that we believe will benefit if the policies being proposed by the current
administration are enacted.
2 The New York Times
| 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 stock market.
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.
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.
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.
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 cyber security.