Corporate Tax Reform Portfolio, Series 5
Since the recession of 2008, American workers and businesses have experienced the slowest economic recovery since World War II.1 In an attempt to get the economy back on track, President Trump
has outlined a bold plan to create 25 million new American jobs over the next decade and return to 4% annual economic growth.2One of the President’s strategies was to reduce the U.S. corporate
tax rate, which is one of the highest in the world. In December 2017, the Tax Cuts and Jobs Act was passed lowering the corporate income tax rate permanently to 21% starting in 2018. Lower
corporate taxes have the potential to encourage investment and hiring, and may give companies the ability to increase dividends and buy back shares. By including companies that derive over 90%
of their revenue domestically, the Corporate Tax Reform Portfolio seeks to provide exposure to companies that could potentially benefit from the reduced U.S. corporate tax rate.
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.
You should be aware that the portfolio is concentrated in stocks in the consumer products sector
which involves additional risks, including limited diversification. The companies engaged in the
consumer products sector are subject to certain risks, including global competition, changing
government regulations and trade policies, currency fluctuations, and the financial and political
risks inherent in producing products for foreign markets.
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.
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
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.