Global Equity Income Closed-End Portfolio, Series 62
Why Invest Globally?
As of November 30, 2018, the market value of all U.S. equities stood at $29.73 trillion, or 40.1% of the
world’s total equity market capitalization, according to Bloomberg. By investing solely in the U.S. equity
market, investors exclude a major portion of the world’s investment opportunities and some of the best
companies in the world, in our opinion. The Global Equity Income Closed-End Portfolio invests in a pool
of closed-end funds which invest in global dividend-paying stocks.
The Case for Global Dividends
Diversification is one of the principal advantages of global investing, in our opinion. Because
global markets often follow different cycles than the U.S. markets, investing globally may provide
gains when domestic markets are flat or declining. It is important to note that diversification does
not guarantee a profit or protect against loss.
By investing a portion of your portfolio outside the U.S., you may significantly expand your investment
choices and participate in the long-term growth potential of foreign companies. The International
Monetary Fund (IMF) is forecasting a global growth rate of 3.7% for 2018 and 2019. IMF’s estimate for
the U.S. is 2.9% for 2018 and 2.5% for 2019.
This unit investment trust seeks high current
monthly income, with capital appreciation as a
secondary objective. There is, however, no
assurance that the objectives of the portfolio
will be achieved.
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.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
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. Shares of closed-end funds frequently trade at a discount to their net asset value in the secondary market and the net asset value of closed-end fund shares may decrease. Certain closed-end funds in which the portfolio invests may employ the use of leverage which increases the volatility of such funds.
All 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
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.
All of the closed-end funds invest in securities issued by foreign
issuers. Foreign issuers are subject to additional risks, including
currency fluctuations, political risks, 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.
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.
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.
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.
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.
For a discussion of additional risks of investing in the trust see the "Risk Factors" section of the prospectus.