Market Strength Allocation Opportunity Portfolio, Series 9
Determining which areas of the market provide the best investment opportunities
can be a daunting task and sometimes economic climates break with tradition,
making investment decisions even more arduous. These situations have historically
offered opportunities for patient shareholders to increase their exposure in
Our goal with the Market Strength Allocation Opportunity
Portfolio is to invest in undervalued companies with strong market positions
that have the following qualities:
- Strong balance sheets;
- Skilled management;
- Highly liquid;
- Ability to generate earnings growth; and
- Record of financial strength and profit growth.
This unit investment trust seeks above-average capital appreciation; however, there is no assurance the
objective will be met.
Portfolio Selection Process
This unit investment trust will invest in a diversified portfolio of common
stocks of companies that exhibit financial strength from five distinct segments
of the market. The five market segments will be weighted based on the adjacent
Through our selection process we seek to find the companies that we believe have the best
prospects for above-average capital appreciation.
Identify the universe
The first step in our selection process is to identify each
universe from which we will select the stocks for the five market segments. Each universe contains
stocks selected specifically for each component of the allocation.
Screen for financial strength
The next step in our process is to 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.
|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 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.
Although this portfolio terminates in approximately 15 months, the strategy is long-term.
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 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.