Pacific Northwest Portfolio, Series 3
The Pacific Northwest Portfolio is a professionally selected unit investment trust that is comprised of the
equity securities of companies with headquarters, or a significant presence, in the northwest region of the
U.S. The portfolio is diversified among several market sectors in an effort to potentially reduce risk. The
Pacific Northwest is home to several world class companies, many of which are located in the states of
Idaho, Oregon and Washington. A study conducted in July 2019 shows these states ranked highly in the
economy category which is shown in the adjacent chart. The study considered economic growth, job
creation, and the health of the residential real estate market. It also measured the state’s fiscal health by
looking at its credit ratings and outlook, overall budget picture, and pension and retiree health care
obligations.1 Diversification does not guarantee a profit or protect against loss.
Idaho’s economy is one of the strongest in the nation, due to a combination of low taxes, a balanced
budget with no state debt, and a commonsense regulatory environment. The state’s tax policies are
intended to attract, grow, and retain businesses. Idaho’s economy is driven by a blend of industries that
bring about stability, collaboration and innovation.2
- In 2013, Idaho exempted more than 90% of businesses from paying personal property tax. In 2018, Idaho
lowered both the corporate and personal income taxes to 6.925% (top bracket). In addition, Idaho has a
1.5% property tax and 6% general sales tax and has the lowest per capita tax burden of any state.3
- Technology and innovation are strong drivers of Idaho’s economy. The number of high-tech companies in
Idaho grew 61% over the past decade. Idaho’s technology sector grew more than twice the rate of the
U.S. national average between 2017 and 2018.4
Oregon is home to a wide variety of diverse industries, but recognizes six key industry groups which have
distinct competitive advantages that provide the state with unique opportunities for growth, high wage
jobs, innovation and statewide prosperity. The six industries are: advanced manufacturing, business
services, food & beverages, forestry & wood products, high technology and outdoor gear & apparel.
Oregon offers globally competitive tax incentives to encourage business expansion.5
- In 2018, Oregon’s real GDP increased by 3.4%; the 2017-2018 national change was 2.9%. The 2008-2018
compound annual growth rate for Oregon was 2.1% versus 1.8% for the nation.6
- As of July 2019, Oregon’s unemployment rate was 4%, the state’s lowest unemployment rate in the current
series dating back to 1976. In addition, in July 2019, Oregon’s total non-farm payroll employment added
Washington is well known as a home for global leaders in aerospace, but the state also has other highgrowth
industry sectors: agriculture/food manufacturing, clean technology, forest products, life
science/global health, maritime and information and communication technology.8
- Washington’s labor force has increased 3.9% per year over the last two years, compared to 2% nationally.
In addition, the state’s population grew by an estimated 126,600 people, a 1.76% increase over the past
year and the largest percentage increase since 2006.9
- In 2018, Washington state was the fastest growing economy in the nation and expanded output by 5.7%
from a year earlier adjusted for inflation. This rate is nearly double the national rate and has boosted the
state into the nation’s 10 largest economies for the first time on record.10
1 CNBC. All 50 states were reviewed through a rigorous test and graded based on more than 60 measures of
competitiveness in 10 broad categories. Each category is weighted according to how frequently states use them as a
selling point in economic development marketing materials. CNBC's criteria was developed with guidance from a
diverse array of business and policy experts and official government sources, along with input from the states
themselves. Their metrics are based on publicly available data from a variety of sources.
2,3,4 Idaho Commerce
5 Business Oregon
6 U.S. Department of Commerce Bureau of Economic Analysis
7 East Oregonian
8,9 Washington State Department of Commerce
7 The Washington Post
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 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.
The information is intended to be illustrative of certain economic factors affecting the Pacific
Northwest region of the U.S. There is no assurance that the region as a whole will continue to
experience economic growth or that the companies selected for the trust will benefit.
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 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.