Core Holdings Growth Trust, 2022 Fall Series
The Wells Fargo Advisors formula for long-term growth investing begins with the process of choosing quality companies that have solid prospects for the future. These are companies that possess
important competitive advantages, complementing records of long-standing profitability. However, these core holdings stocks are seldom cheap when measured by many financial standards. The
market often makes investors “pay up” for quality, but taking a long-term approach may reward investors over time, which Wells Fargo Advisors believes is an important consideration when holding
core investments. An investment in the Core Holdings Growth Trust provides exposure to a professionally selected portfolio of stocks which meets Wells Fargo Advisors’ criteria for core stock holdings.
They believe a portfolio comprised of blue chip, industry-leading companies may withstand the test of time and can be used to build a well-diversified portfolio or supplement an existing portfolio.
Wells Fargo Advisors believes the stocks that should form the “core” of your portfolio are those
companies which are consistently profitable industry leaders. The stocks that are placed on the
Wells Fargo Advisors Core Stock Investment Plan list must meet very strict criteria, including the
following quantitative and qualitative criteria:
- Solid returns on invested capital
- A prominent market share position
- Consistent sales and earnings growth
- A seasoned management team
- The ability to maintain these
characteristics in the future
A company must have a market value of at
least $2 billion and revenues of at least $1 billion
to be considered for the Core list. All
companies, excluding American Depositary
Receipts ("ADRs"), that trade on major markets
in the U.S. are screened for these two
Companies that pass these two screens are then ranked based on characteristics that Wells Fargo
Advisors believes are important for considerations for long-term growth potential:
- Return on invested capital
- Stability of revenues and earnings
- Stock price volatility
- Financial strength
- Changes to a company’s operating or regulatory environment
- Industry or sector characteristics
The companies selected for the Core List are those that Wells Fargo Advisors believes are suitable
for long-term buy and hold investing.
Of course, there can be no guarantee that the companies selected for a portfolio will continue
to exhibit these characteristics or that any investment will grow, nor is past performance any
assurance of future performance.
While there are many different ways for growth-oriented investors to obtain capital appreciation
through their investments, Wells Fargo Advisors believes that buying and holding companies that
are well managed, with highly sought-after products and services is an excellent way to seek
The Core Holdings Growth Trust seeks capital appreciation; however, there is no assurance the
objective will be met. The trust has a fixed portfolio and a fixed maturity.
You should consider the portfolio's investment objective, 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.
Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers.
One of the securities in the portfolio is issued by a Real Estate Investment Trusts (REIT). 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.
Large capitalization companies may grow at a slower rate than the overall market.
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.
In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain investments as well as performance.
The COVID-19 global pandemic has caused and may continue to cause significant volatility and declines in global financial markets. While the U.S. has resumed “reasonably” normal business activity, many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.
The value of the securities held by the portfolio may be subject to declines or increased volatility due to
changes in performance or perception of the issuers. There are fees and sales charges associated with this
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.
Wells Fargo Advisors is the trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors
Financial Network, LLC, members SIPC, separate registered broker-dealers and non-bank affiliates of Wells
Fargo & Company. While Wells Fargo Advisors has carefully evaluated and approved the securities in this
portfolio, it may choose for any reason not to recommend any or all of the securities for another purpose or at
a later date. This may affect the value of your units.
First Trust Portfolios L.P. is the sponsor of this portfolio.Units are available
through Wells Fargo Advisors and other broker/dealer firms.
|Investment and Insurance Products Are:
- Not Insured by the FDIC or Any Federal Government Agency
- Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate
- Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested