American Agenda, Series 15
During his 2016 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 and the administration
continues to focus on:
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 was one of the highest in the world. In December 2017, the Tax Cuts and Jobs
Act was passed lowering the corporate income tax rate permanently 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 the U.S. Energy
Administration’s Annual Energy Outlook 2020, the U.S. is anticipated to export more crude oil and
petroleum products combined than it imports through 2050, but under certain conditions, it also has the potential to become a
net exporter of crude oil on its own in the future.*
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.
*The report was published prior to the COVID-19 pandemic and may impact future projections.
2 The New York Times
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 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 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.
Large capitalization companies may grow at a slower rate than the overall market.
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.
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.
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.
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.