Energy Opportunity Portfolio, Series 3
Energy is the vital force powering business, manufacturing, and the transportation of goods and services to serve the world's economies. Energy supply and demand plays an increasingly vital role in
worldwide economic output.
As the global need for energy grows, the challenge of developing clean fuel initiatives to make the most of traditional fossil fuels and investing in cutting edge research to identify new energy
sources, like hydrogen fuels and fusion technologies, becomes increasingly important.
The Energy Information Administration projects that total world energy consumption will grow by
approximately 28% between 2015 and 2040. The majority of the world’s energy growth is anticipated to
occur in countries outside of the Organization for Economic Cooperation and Development (OECD)
member countries, where strong, long-term economic growth drives increasing demand for energy. Non-
OECD Asia (including China and India) alone accounts for more than half of the world’s total increase in
energy consumption over the 2015 to 2040 projection period.
World Oil Demand
According to the Organization of Petroleum Exporting Countries (OPEC), world oil demand stood at 97.20
million barrels per day in 2017. In 2018, it is estimated to reach 98.83 million barrels per day. The chart
below shows the anticipated increase in world oil demand over the long-term.
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 the number listed below 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.
You should be aware that an investment that is concentrated in stocks in the energy sector involves additional risks, including limited diversification. The companies engaged in the energy sector are subject to certain risks, including price and supply fluctuations caused by international politics, energy conservation, taxes, price controls, and other regulatory policies of various governments. Falling oil and gas prices may negatively impact the profitability and business prospects of certain energy companies. There is no assurance that the projections stated herein will be realized.
An investment in foreign equities should be made with an understanding of the additional risks involved with foreign issuers, such as currency fluctuations, political risk, 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 developed, less liquid, less regulated, and more volatile than the U.S. and developed foreign 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.
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.
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.
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.