Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       


Stonebridge Preferred Income, Series 29

The Stonebridge Preferred Income Portfolio is a unit investment trust that is diversified across preferred securities issued by companies that we believe have current attractive yields.

Portfolio Selection Process

First Trust Portfolios L.P. (“First Trust”) selected a portfolio of preferred securities by collaborating with Stonebridge Advisors LLC (“Stonebridge”). Stonebridge used relative value, fundamental credit and market technical analyses to prepare a recommended portfolio of securities designed to meet the objective of the trust. Attributes such as credit quality, yield, capital structure positioning, as well as market technicals such as trading volumes, liquidity and pricing inefficiencies were considered in this process. Stonebridge submitted its portfolio suggestions to First Trust who then chose the final portfolio.

What Are Preferred Securities?

  • Preferred securities are best defined as fixed-income credit products with equity-like features.
  • Preferred securities combine many of the characteristics of fixed-income securities — scheduled dividend/interest payments, defined par amounts and credit ratings with certain characteristics of equities — perpetual or long-dated terms, lower priority in the capital structure and quarterly dividend/interest payments.
  • Preferred securities typically have a yield advantage over common stocks as well as comparably rated fixed-income investments.
  • Preferred securities are "senior securities" which have preference over common stocks, but not debt, of an issuer.

Why Invest In Preferred Securities?

High Income Stream Potential - Current yields on preferred securities are attractive relative to many other income-producing securities.

Historically Low Correlations - Preferred and hybrid securities have historically exhibited low correlations to other income-producing asset classes. The numerous characteristics and varying structures of preferreds allow for this asset class to be a potential beneficial allocation to a diversified investment portfolio. Diversification does not guarantee a profit or protect against loss.

About Stonebridge Advisors LLC

  • Stonebridge, an affiliate of First Trust, has an experienced investment team with an average of 15 years of broad investment experience in fixed income and equities in the areas of portfolio management, trading, and research. Stonebridge's primary focus is in preferred and hybrid securities.
  • Collectively, the Stonebridge investment team members have started two investment management firms and managed multi-billion dollar portfolios. With the team's advanced portfolio management, analytical and modeling capabilities, Stonebridge has created a selection of preferred securities strategies to meet the needs of a wide range of clients.

Portfolio Objective

This unit investment trust seeks a high rate of current income; 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.

Risk Considerations
An investment in this unmanaged unit investment trust should be made with an understanding of the risks involved with owning preferred stocks and trust preferred securities, such as an economic recession, volatile interest rates and the possible deterioration of either the financial condition of the issuers of the trust preferred securities or the general condition of the stock market.

You should be aware that the portfolio is concentrated in preferred stocks and trust preferred securities issued by companies in the financials sector which involves additional risks, including limited diversification. The financials sector is subject to the adverse effects of volatile interest rates, economic recession, decreases in the availability of capital, increased competition from new entrants in the field, and the potential for increased regulation. Preferred stocks and trust preferred securities are typically subordinated to bonds and other debt instru ments in a company’s capital structure, in terms of priority to corporate income, and therefore will be subject to greater credit risk than those debt instruments.

Certain of the securities held in the trust are “high-yield” securities which are rated below investment grade. Investing in high-yield securities should be viewed as speculative and you should review your ability to assume the risks associated with investments that use such securities. High-yield securities are subject to numerous risks including higher interest rates, economic recession, deterioration of the high yield market, possible downgrades and defaults of interest and/or principal. High-yield security prices tend to fluctuate more than higher rated securities and are affected by short-term credit developments to a greater degree.

Certain of the securities in the portfolio are issued by Real Estate Investment Trusts (REITs). Companies involved in the real estate industry are subject to changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession.

An investment in a portfolio containing 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.

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.

The recent outbreak of a respiratory disease designated as COVID-19 was first detected in China in December 2019. The global economic impact of the COVID-19 outbreak is impossible to predict but is expected to disrupt manufacturing, supply chains and sales in affected areas and negatively impact global economic growth prospects. The COVID-19 outbreak has also caused significant volatility and declines in global financial markets, which have caused losses for investors. The impact of the COVID-19 outbreak may be short term or may last for an extended period of time, and in either case could result in a substantial economic downturn or recession.

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 qualified plan.

Fund Cusip Information
30315P549 (Cash)
30315P556 (Reinvest)
30315P564 (Cash-Fee)
30315P572 (Reinvest-Fee)
Printer Friendly Page Printer Friendly Page
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, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2020 All rights reserved.