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Core Holdings Growth Trust, 2024 Spring 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.

Core Holdings

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 characteristics.

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:

  • Growth

  • 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.

Portfolio Objective

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 growth potential.

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.

Wells Fargo Advisors is the trade name used by Wells Fargo Clearing Services, LLC (WFCS) 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 and not an affiliate of Wells Fargo Advisors.

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.

Risk Considerations

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.

Certain of the securities in the trust are issued by 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.

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.

Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, the Middle East 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 ongoing effects of the COVID-19 global pandemic, or the potential impacts of any future public health crisis, may cause significant volatility and uncertainty in global financial markets. While vaccines have been developed, there is no guarantee that vaccines will be effective against future 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 investment.

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.


CUSIP identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by FactSet Research Systems Inc. and are not for use or dissemination in a manner that would serve as a substitute for any CUSIP service. The CUSIP Database, ©2024 CUSIP Global Services. "CUSIP" is a registered trademark of the American Bankers Association.

Fund Cusip Information
30334U305 (Cash)
30334U313 (Reinvest)
30334U321 (Cash-Fee)
30334U339 (Reinvest-Fee)
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The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
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