International Capital Strength Portfolio, Series 57
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 flows.
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 professional
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.
A significant percentage of the securities held by the portfolio are issued by companies in Europe. 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.
Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers.
The United Kingdom’s official departure from the European Union (commonly referred to as “Brexit”) led to volatility in global financial markets, in particular those of the United Kingdom and across Europe, and the weakening
in political, regulatory, consumer, corporate and financial confidence in the United Kingdom and Europe. It is not currently possible to determine the extent of the impact that Brexit may have on the portfolio’s investments and
this uncertainty could negatively impact current and future economic conditions in the United Kingdom and other countries, which could negatively impact the value of the portfolio’s investments.
An investment in a portfolio containing mid-cap companies is subject to additional risks, as the share prices of 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.
Large capitalization companies may grow at a slower rate than the overall market.
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 cybersecurity.
In February 2022, Russia invaded Ukraine which has caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain investments as well as performance.
The COVID-19 global pandemic and the ensuing policies enacted by governments and central banks
have caused and may continue to cause significant volatility and uncertainty in global financial
markets. While the U.S. has resumed “reasonably” normal business activity, many countries continue to
impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against
emerging variants of the disease.
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.
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