Global Bond Income Closed-End Portfolio, Series 33
Why Invest Globally?
Historically, American investors have found substantial investment opportunities right here in the United
States. However, foreign economies are expanding and issuing debt with attractive yields to help finance
their growing infrastructures and businesses. The Global Bond Income Closed-End Portfolio provides a
convenient way to add an international dimension to your investment portfolio, significantly expanding
your investment opportunities and potentially enhancing your overall return. To accomplish this, the
portfolio invests in a pool of closed-end funds which invest in a wide range of bonds, including government
bonds and corporate bonds from domestic and foreign issuers, including those in emerging markets.
This unit investment trust seeks a high rate of current monthly income, with capital
appreciation as a secondary objective; however, there is no assurance that the
objectives of the portfolio will be achieved.
Diversification is one of the principal advantages of global investing. Historically, by diversifying beyond
the United States, investors have been able to reduce the overall volatility of their portfolio over time.
While individual foreign bond markets may move in tandem with the U.S. market over short-term
periods, they generally have lower longer-term correlation. This low correlation helps to temper some of
the fluctuations found in a portfolio that consists primarily of U.S. bonds. In addition, interest rates in
some foreign countries are often higher than what investors can find domestically, especially in our
current low interest rate environment. Diversification does not guarantee a profit or protect against loss.
Since closed-end funds maintain a relatively fixed pool of investment
capital, portfolio managers are better able to adhere to their investment philosophies through greater
flexibility and control. In addition, closed-end funds don’t have to manage fund liquidity to meet
potentially large redemptions.
Closed-end funds are structured to generally provide a more
stable income stream than other managed investment products because they are not subjected to cash
inflows and outflows, which can dilute dividends over time. However, as a result of bond calls,
redemptions and advanced refundings, which can dilute a fund’s income, the portfolio cannot guarantee
|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 an investment in a portfolio of closed-end
Closed-end funds are subject to various risks, including
management’s ability to meet the fund’s investment objective,
and to manage the fund’s portfolio when the underlying
securities are redeemed or sold, during periods of market
turmoil and as investors’ perceptions regarding the funds or
their underlying investments change. Unlike open-end funds,
which trade at prices based on a current determination of the
fund’s net asset value, closed-end funds frequently trade at a
discount to their net asset value in the secondary market.
Certain closed-end funds employ the use of leverage, which
increases the volatility of such funds.
Certain of the closed-end funds invest in common stocks.
Common stocks are subject to certain risks, 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.
All of the closed-end funds invest in high-yield securities or
"junk" bonds. Investing in high-yield securities should be viewed
as speculative and you should review your ability to assume the
risks associated with investments which utilize such securities.
High-yield securities are subject to numerous risks including
higher interest rates, economic recession, deterioration of the
junk bond market, possible downgrades and defaults of interest
and/or principal. High-yield security prices tend to fluctuate
more than higher rated securities and are affected by short-term
credit developments to a greater degree.
All of the closed-end funds invest in investment grade securities.
Investment grade securities are subject to numerous risks
including higher interest rates, economic recession,
deterioration of the investment grade security market or
investors' perception thereof, possible downgrades and defaults
of interest and/or principal.
Certain of the closed-end funds held by the trust invest in money
market or similar securities as a defensive measure. If market
conditions improve while a fund has temporarily invested some
or all of its assets in money market securities, the potential gain
from the market upswing may be reduced.
All of the closed-end funds invest in securities issued by foreign
issuers. Such securities are subject to certain risks including
currency and interest rate fluctuations, nationalization or other
adverse political or economic developments, lack of liquidity of
certain foreign markets, 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 liquid, less regulated and more volatile than the U.S. and
developed foreign markets.
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.
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.
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.
It is important to note that an investment can be made in the underlying funds directly rather than through the trust. These direct investments can be
made without paying the trust's sales charge, operating expenses and organizational costs.
For a discussion of additional risks of investing in the trust see the "Risk Factors" section of the prospectus.