International High Dividend Equity Portfolio, Series 34
The International High Dividend Equity
Portfolio provides a convenient way to add
both an international dimension to your
investment portfolio as well as to invest in
companies that we believe have shown a solid
history of distributing dividends to
shareholders. We believe that this could
significantly expand your investment
opportunities and potentially enhance your
Portfolio Selection Process
Through our selection process we seek to find the stocks that we believe have
the best prospects for above-average total return.
Identify the Universe
The first step in our selection process is to identify the universe of stocks
from which we will select the portfolio. To establish the universe, we begin
by selecting stocks of foreign companies that trade on a U.S. stock exchange
either directly or through an American Depositary Receipt and eliminate those
companies that do not meet our investment criteria. These criteria are designed
to identify well-capitalized companies with above-average dividend yields and
the ability to sustain current dividend levels.
Examine Historical Financial Results
The next step in our process is to look for those companies that have earned
a net cash flow return on investment that is above the average of their peers.
Historically, companies that have increased their cash flows at a higher rate
have rewarded shareholders with superior total returns.
Select Companies with Attractive Valuations for the Portfolio
The final step in our process is to select companies based on the fundamental
analysis of our team of research analysts. The stocks selected for the portfolio
are those that meet our investment objectives, trade at attractive valuations
and, in our opinion, are likely to exceed market expectations of future cash
This unit investment trust seeks above-average total return through a combination of capital
appreciation and dividend income; however, there is no assurance the objective will be met.
There is no guarantee that the issuers of the securities included in the portfolio will declare
dividends in the future or that, if declared, they will either remain at current levels or increase
over time. The portfolio terminates approximately two years from the initial date of deposit.
|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.
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.
You should be aware that the portfolio is concentrated in stocks in the financials sector which
involves additional risks, including limited diversification. The companies engaged in the
financials sector are subject to the adverse effects of volatile interest rates, economic recession,
decreases in the availability of capital, increased competition from new entrants in the field, and
potential increased regulation.
Because the portfolio is concentrated in companies
headquartered in Europe, the portfolio may present more risks
than a portfolio which is broadly diversified over several regions.
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.
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
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.
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.