Target Global Dividend Leaders Portfolio, 4th Quarter 2023 Series
This unit investment trust invests in a fixed portfolio
of stocks for approximately 15 months. The stocks are
selected by applying a disciplined investment strategy
which adheres to pre-determined screens and factors.
The strategy is based on these steps:
- Establish three distinct universes which consist of the following:
- Domestic equity – all U.S. stocks.
- International equity – all foreign stocks that
are listed on a U.S. securities exchange either
directly or in the form of American Depositary
- Real Estate Investment Trusts (REITs) – all
(including mortgage REITs).
- Regulated investment companies and limited
partnerships are excluded from all universes. REITs
(including mortgage REITs) are also excluded from the
domestic and international equity universes.
- Select the stocks in each universe that meet the following criteria:
- Market capitalization greater than $1 billion.
- Three month average daily trading volume greater than $1 million.
- Dividend yield greater than twice that of the S&P 500 Index at the time
- Rank the selected stocks within each universe on the following factors: price to cash flow; return on assets; and 3, 6 and 12-month price appreciation.
- Select the 20 stocks within each universe with the best
overall rankings. The domestic and international equity
universes are subject to a maximum of four stocks from
any one of the major GICS® market sectors. The financials and
real estate sectors are combined for the sector limit
purpose. If a universe has less than 20 eligible
securities, all eligible securities are selected.
- The universes are approximately weighted as shown below. Stocks are approximately
equally weighted within their universe.
- 40% domestic equity.
- 40% international equity.
- 20% REITs.
If this strategy had been applied since 1998,
investors would have realized higher total returns
than by investing in the MSCI All Country World
Index. Although this unit investment trust
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.
This unit investment trust seeks above-average total return;
however, there is no assurance the objective will be met.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
|Average Annual Total Returns*
|Annual Total Returns
Past performance is no guarantee of future results and the actual current
performance of the portfolio may be lower or higher than the hypothetical performance
of the strategy. Hypothetical returns for the strategy in certain years were
significantly higher than the returns of the MSCI All Country World Index. Hypothetical
strategy returns were the result of certain market factors and events which
may not be replicated in the future. You can obtain performance information
which is current through the most recent month-end by calling First Trust Portfolios
L.P. at 1-800-621-1675 option 2. Investment return and principal value of the
portfolio will fluctuate causing units of the portfolio, when redeemed, to be
worth more or less than their original cost.
Simulated strategy returns are hypothetical, meaning that they do not
represent actual trading, and, thus, may not reflect material economic and
market factors, such as liquidity constraints, that may have had an impact
on actual decision making. The hypothetical performance is the retroactive
application of the strategy designed with the full benefit of hindsight.
Strategy returns reflect a sales charge of 1.85% and estimated annual
operating expenses of 0.185%, plus organization costs, but not taxes or
commissions paid by the portfolio to purchase securities. Strategy returns
assume that all dividends are reinvested monthly while index returns
assume dividends are reinvested when they are received. Actual portfolio
performance will vary from that of investing in the strategy stocks because
it may not be invested equally in these stocks and may not be fully
invested at all times. It is important to note that the strategy may
underperform the MSCI All Country World Index in certain years and may
produce negative results. The MSCI All Country World Index is an
unmanaged free float-adjusted market capitalization weighted index
designed to measure the equity market performance of developed and
emerging markets. The index cannot be purchased directly by investors.
You should consider the portfolio's investment objectives, 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.
Certain of the securities in the portfolio are issued by 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.
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. Risks associated with investing in non-U.S. securities may be more pronounced in emerging
markets where the securities markets are substantially smaller, less developed, less liquid, less regulated,
and more volatile than the U.S. and developed non-U.S. markets.
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.
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 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 trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers.
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.