Global Agriculture Portfolio, Series 37
Agriculture, the science of cultivating crops and raising animals for food and other products such
as leather, cotton and wool, is one of the oldest human practices. Today, like many sectors of the
world economy, agriculture is being challenged by global change. Companies in the agriculture
sector help farmers around the world to flourish, produce healthier foods, and provide better
animal feeds, while also reducing agriculture’s impact on our environment. These agricultural
products, or commodities, are a unique asset class that respond differently than traditional asset
classes to changing economic conditions and may act as a hedge against rising inflation.
Consider The Following
- For fiscal year 2022, U.S. agricultural exports are expected to reach a record $191.0 billion;
imports are also anticipated to reach a record of $180.5 billion.1
- In 2020, approximately 2.45 million units of agricultural equipment were sold worldwide. By
2029, that number is forecast to reach 2.70 million units.2
- Global demand for nitrogen, phosphorus and potassium for fertilizer use is projected to reach
over 208 million tons in 2026, up from 187 million tons in 2019, based on 2021 estimates.3
- According to the most recent data, U.S. crop farm expenditures increased 6.2% to $207.6
billion in 2021, of which $61.3 billion was allocated to chemicals, fertilizers and seeds.4
This unit investment trust seeks above-average capital appreciation and dividend income;
however, there is no assurance the objectives will be met.
1 USDA, May 2022
2 Statista, April 2021
3 International Fertilizer Association, August 2021
4 USDA, July 2022
5 United Nations Department of Economic and Social Affairs, World Population Prospects 2022
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.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
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 the portfolio is concentrated in stocks
in both the consumer products and materials sectors which
involves additional risks, including limited diversification.
Companies in the consumer products sector are subject to global
competition, changing government regulations and trade
policies, currency fluctuations, and the financial and political
risks inherent in producing products for foreign markets. The
companies engaged in the materials sector, including
companies within the precious metals industry, are subject to
price and supply fluctuations, excess capacity, economic
recession, domestic and international politics, government
regulations, volatile interest rates, consumer spending trends
and overall capital spending levels.
The portfolio also invests in companies in the agribusiness industry. Companies in the agribusiness industry are subject to cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, excess capacity, product liability litigation and governmental regulation and subsidies.
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.
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.
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 trust may be subject to steep declines
or increased volatility due to changes in performance or perception of the issuers.
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.