Global Gorillas Portfolio, Series 8
What is a "Global Gorilla?"
In the investment world, a gorilla is defined as a company that dominates an industry without having a
complete monopoly. These companies tend to have a large control of the pricing and availability of their
products, relative to their competitors in the industry. They have leading franchises with widespread
exposure to fast-growing overseas markets, strong operational capabilities and enough pricing power to
offset rising margin pressures. These companies are well known blue-chip companies that are widely
recognized as leaders in their respective industries.
The Global Gorillas Portfolio invests in companies that we believe have strong dividend growth and/or
share buyback potential. As the interest rate environment in the United States, in particular, normalizes
over the next several years, we believe it may be beneficial to own stocks with dividend growth or
outsized buyback potential vs. high-yield stocks.
Gaining Exposure to Growing Emerging Markets
Emerging markets are countries that are attempting to change and improve their current economies. Size
itself is not a factor for determining an emerging market, as evidenced by China. The objective of an
emerging market is to raise economic performance and, as a result, become a more advanced nation.
Collectively, developing economies are anticipated to grow faster than the economies of countries which are
already developed. According to the International Monetary Fund, GDP growth for emerging economies is
estimated to be 4.9% in 2018 and 5.1% in 2019 compared to 2.5% and 2.2% for advanced economies.
We believe that investing in Global Gorillas, with a strong emerging markets presence and a developed
market domicile, is a prudent approach to gain exposure to growth in emerging markets.
Many of the companies selected for the portfolio are headquartered in the United States, but earn a
substantial portion of their profits from overseas, while some are headquartered overseas but have
businesses with a similar global scale and scope. We select the stocks in the portfolio by utilizing measures
such as cash flow analysis, balance sheet strength, dividend yield and valuation support.
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 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.
You should be aware that the portfolio is concentrated in stocks in the consumer products sector which involves additional risks, including limited
diversification. The companies engaged in the consumer products industry 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.
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.
An investment in a portfolio containing equity securities of foreign issuers is subject to additional risks, including currency fluctuations, political risks,
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.
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.
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.