International High Dividend Equity Portfolio, Series 37
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 overall return.
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
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
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 flows.
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.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
You should consider the portfolio's investment objective, 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.
Because the portfolio is concentrated in companies headquartered in both Europe and the United
Kingdom, 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 available information.
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.