International Capital Strength Portfolio, Series 39
The International Capital Strength 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.
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.
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.
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.
Because the portfolio invests in securities issued by companies
headquartered in Europe and the United Kingdom, the portfolio
may present more risks than a portfolio which is broadly
diversified over several regions.
The United Kingdom's 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.
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.
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.