International Capital Strength Opportunity Portfolio, Series 5
The International Capital Strength Opportunity Portfolio provides a convenient way to add
an international dimension to your investment portfolio, significantly expanding
your investment opportunities and potentially enhancing 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 capital appreciation.
Identify 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.
Screen For Financial Strength
We then evaluate companies based on multiple
factors. These factors are designed to identify those stocks which exhibit strong fundamental
characteristics and to eliminate those that do not meet our investment criteria.
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 objective, trade at attractive valuations,
and in our opinion, are likely to exceed market expectations of future cash
This unit investment trust seeks above-average capital appreciation; however,
there is no assurance the objective will be met. 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 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.;
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.
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.
Although this portfolio terminates in
approximately 15 months, the strategy is longterm.
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
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 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.