Global Equity Income Closed-End Portfolio, Series 64
Why Invest Globally?
As of April 10, 2019, the market value of all U.S. equities stood at $31.073 trillion, or 38.7% 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 3.3% for 2019 and 3.6% for 2020. IMF’s
estimate for the U.S. is 2.3% for 2019 and 1.9% for 2020.
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.
|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 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 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 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
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.
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
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.
Certain of the closed-end funds invest in real estate investment
trusts (REITs). Companies involved in the real estate industry are
subject to changes in the real estate market, vacancy rates and
competition, volatile interest rates and economic recession.
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.
For a discussion of additional risks of investing in the trust see
the “Risk Factors” section of the prospectus.