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Municipal Advantage Closed-End and ETF Portfolio, Series 45

Americans deal with a number of different taxes in their everyday lives, perhaps none more noticeable than individual income taxes. In fact, individual income taxes comprise the largest component of Americans' tax bill. Tax Freedom Day is the day on which Americans have earned enough money to pay all federal, state and local taxes for the year. On average, Americans have to work a full 46 days in 2017 just to earn enough money to pay for these taxes.1



Portfolio Objective

The trust seeks monthly income that is exempt from federal income taxes by investing in a well-diversified pool of closed-end funds and exchange-traded funds that invest in taxexempt municipal bonds. In addition, none of the funds which are selected for the portfolio is reporting the use of structural leverage. By not employing structural leverage, the volatility of the funds is reduced. However, certain or all of these closed-end funds may elect to utilize structural leverage in the future.

It is important to note that certain distributions paid by certain funds may be subject to federal income taxes and may be subject to the alternative minimum tax. The portfolio terminates approximately two years from the initial date of deposit.

Portfolio Advantage

Diversification
Investing in both closed-end funds and exchange-traded funds provides an efficient way to achieve diversification across municipal bonds. The broad range of closedend funds and exchange-traded funds in which the portfolio invests are further diversified across hundreds of individual issues. It is important to note that diversification does not guarantee a profit or protect against loss.


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.

Risk Considerations:
An investment in this unmanaged unit investment trust should be made with an understanding of the risks associated with an investment in a portfolio of closed-end funds and exchange-traded funds (ETFs).

Closed-end funds and ETFs are subject to various risks, including management's ability to meet the fund's investment objective, and to manage the fund's portfolio when the underlying securities are redeemed or sold, during periods of market turmoil and as investors' perceptions regarding the funds or their underlying investments change. Shares of closed-end funds and ETFs frequently trade at a discount to their net asset value in the secondary market and the net asset value may decrease. Based on current publicly available information, none of the funds selected for the portfolio are reporting the use of structural leverage. Structural leverage creates a systematic level of additional investment exposure through a fund’s issuance of preferred shares or debt securities, or through borrowing money. Funds which employ structural leverage are more volatile than those that do not. Certain of the funds may report effective leverage, which results from a fund’s investment in derivative instruments that are inherently leveraged.

Certain of the closed-end funds and ETFs invest in high-yield securities or "junk" bonds. Investing in high-yield securities should be viewed as speculative and you should review your ability to assume the risks associated with investments that utilize such bonds. High-yield securities are subject to numerous risks including higher interest rates, economic recession, deterioration of the junk bond market, possible downgrades and defaults of interest and/or principal. High-yield security prices tend to fluctuate more than higher rated bonds and are affected by short-term credit developments to a greater degree.

Municipal bonds are subject to numerous risks, including higher interest rates, economic recession, deterioration of the municipal bond market, possible downgrades and defaults of interest and/or principal.

All of the funds invest in investment grade securities. Investment grade securities are subject to numerous risks including higher interest rates, economic recession, deterioration of the investment grade bond market or investors' perception thereof, possible downgrades and defaults of interest and/or principal.

This UIT is a buy and hold strategy and investors should consider their ability to hold the trust until maturity.

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. The markets for credit instruments, including municipal securities, have experienced periods of extreme illiquidity and volatility.

It is important to note that an investment can be made in the underlying funds directly rather than through the trust. These direct investments can be made without paying the trust's sales charge, operating expenses and organizational costs.

For a discussion of additional risks of investing in the trust see the "Risk Factors" section of the prospectus.

 
The information in the prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. The prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
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The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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