Content Leaders Portfolio, Series 12
The Content Leaders Portfolio is a unit investment trust that invests in U.S. traded common stocks of
companies that Pence Capital Management, LLC believes are dominant in the creation and delivery of media
content including television producers, filmmakers, content libraries, broadcast channels, and delivery
platforms. The portfolio includes U.S. and foreign companies with small-, mid- or large-capitalizations.
Increasing Access - Widespread access to high-speed digital networks have revolutionized the
consumption of content, making it available anytime and almost anywhere.
Rising Demand - Wider access and advancing technology have changed human behavior. Untethered
from traditional sources, consumers spend significantly more time demanding and viewing content.
Dominant Content Producers - Only a small number of producers provide and control a
significant portion of the market. High barriers to entry help maintain their dominance.
Dominant Delivery Systems - An even smaller number of eco-systems control the delivery of
content to the consumer.
About Pence Capital Management, LLC
Pence Capital Management, LLC is a registered investment advisory firm based in Newport Beach,
California. The firm uses its proprietary research to identify and deliver actionable investment insights.
The firm is led by Colonel (ret) E. Dryden Pence III, a Harvard-educated economist with thirty years of
experience in the financial industry. His formal training and knowledge in economics combined with his
career of more than twenty-two years in Army Intelligence, Special Operations and Psychological Warfare,
gives the firm a unique understanding of human behavior and its effects on the economy and the markets.
The Content Leaders Opportunity Portfolio is based on the firm's expertise in portfolio construction.
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 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
You should be aware that the portfolio is concentrated in stocks in the consumer products,
information technology and media content industries which involves additional risks, including
limited diversification. Companies in the consumer products industry are subject to global
competition, changing government regulations and trade policies, currency fluctuations, and the
financial and political risks inherent in producing products for foreign markets. The companies
engaged in the information technology sector are subject to fierce competition, high research and
development costs, and their products and services may be subject to rapid obsolescence.
Technology company stocks, especially those which are Internet-related, may experience extreme
price and volume fluctuations that are often unrelated to their operating performance. The media
content industry faces numerous risks, including adverse developments in the industry, rapid
changes in technology, intense competition, government regulation and rapid obsolescence of
products and services. Competitive pressures are intense and stocks of media content companies can
experience rapid volatility.
An investment in a portfolio containing equity securities of
foreign issuers is subject to additional risks, including currency
fluctuations, political risks, withholding, the lack of adequate
financial information, and exchange control restrictions
impacting foreign issuers.
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
Although this portfolio terminates in approximately 15
months, the strategy is long-term. Investors should consider
their ability to pursue investing in successive portfolios, if
available. 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 cyber security.
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.