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Global Commodities Opportunity Portfolio, Series 34

The global commodities sector is made up of several separate markets including agriculture, metals and mining, forest and paper products and energy. These commodities are the building blocks of every economy in the world. Consider the following:

  • According to the USDA, agricultural trade is projected to increase due to global economic growth, which is estimated at approximately 3.0% average growth rate for the next decade. Import demand from developing countries is further reinforced by population growth rates that remain above those in the rest of the world.

  • When economic activity accelerates, whether in the U.S. or abroad, the global demand for natural resources grows. The resulting increase in the underlying commodity prices historically generates higher profits for companies in the energy sector and translates into higher returns for investors.


  • As of March 22, 2018, the S&P 500 Index was off 7.98% from its all-time high while the Thomson Reuters/CoreCommodity - CRB Index (TR/CC CRB Index) was 58.77% off of its all-time high reached on July 2, 2008. Should the economy continue to strengthen, we believe commodities have the potential to benefit. The TR/CC CRB Index is comprised of a basket of 19 commodities and acts as a representative indicator of today’s global commodity markets. The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance. The indices cannot be purchased directly by investors. Past performance is no guarantee of future results.

Global Growth

The growth of the global economy is increasingly important to the success of the companies in the commodities sector. Typically, the demand for commodities increases along with living standards. Because of this, we believe that the majority of the worldwide growth in demand for commodities will come from developing countries.

Over the last several years there has been a dramatic shift in developing countries, such as China, adopting more of the institutions and mechanisms of a market economy. This shift has been, and we believe it will continue to be, significant to the sector.

According to the International Monetary Fund, global GDP growth is projected to be 3.9% in both 2018 and 2019, being led by developing economies where economic growth is projected to be 4.9% in 2018 and 5.0% in 2019.

Portfolio Objective

This unit investment trust seeks above-average capital appreciation by investing in the common stocks of domestic and foreign companies in the commodities sector; 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 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.

You should be aware that an investment that is concentrated in stocks of commodities companies in the energy and materials sectors involves additional risks, including limited diversification. The companies engaged in the energy sector are subject to price and supply fluctuations caused by international politics, energy conservation, taxes, price controls, and other regulatory policies of various governments. The companies engaged in the materials sector 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. Commodity prices are subject to several factors, including 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.

An investment in a portfolio containing small-cap and mid-cap companies is subject to additional risks, as the share prices of smallcap 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.

An investment in a portfolio which includes foreign securities should be made with an understanding of the additional risks involved, such as currency fluctuations, political risk, 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.

Certain securities held by the portfolio are issued by companies in Europe. The United Kingdom vote to leave the European Union and other recent rapid political and social change throughout Europe make the extent and nature of future economic development in Europe and the effect on securities issued by European issuers difficult to predict.

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.

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.

 
Fund Cusip Information
30308B846 (Cash)
30308B853 (Reinvest)
30308B861 (Cash-Fee)
30308B879 (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 and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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