Global Target 15 Portfolio, 1st Quarter 2020 Series
Global Target 15 1Q '20 - Term 4/9/21 (Global Target 15 Portfolio) is a unit
investment trust which invests in a fixed portfolio of stocks for approximately
15 months. The portfolio adheres to a strategy of investing in an approximately
equally weighted portfolio of the five lowest-priced of the ten highest dividend-yielding
stocks from each of the Dow Jones Industrial Average (DJIA), Hang Seng Index
(HSI), and the Financial Times Industrial Ordinary Share Index (FT Index).
The strategy is based on these important elements:
- Higher Dividend Yields - Blue-chip stocks with higher dividend yields may
indicate that the stocks are out of favor or may be undervalued.
- Industry Leaders - The companies included in the DJIA, HSI, and the FT Index
are some of the most widely-held and well-capitalized companies in their markets.
It is important to note that the past performance
of the strategy is hypothetical and it is not indicative of the future performance
of the Global Target 15 Portfolio. Although this unit investment trust 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
This unit investment trust seeks above-average total return;
however, there is no assurance the objective will be met.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
||Average Annual Total Returns*
|Annual Total Returns
Past performance is no guarantee of future results and the actual current performance of the
portfolio may be lower or higher than the hypothetical performance of the strategy. Hypothetical
returns for the strategy in certain years were significantly higher than the returns of the Combined
Indices. Hypothetical strategy returns were the result of certain market factors and events which
may not be replicated in the future. You can obtain performance information which is current
through the most recent month-end by calling First Trust Portfolios L.P. at 1-800-621-1675 option 2.
Investment return and principal value of the portfolio will fluctuate causing units of the portfolio,
when redeemed, to be worth more or less than their original cost.
Simulated strategy returns are hypothetical, meaning that they do not
represent actual trading, and, thus, may not reflect material economic and
market factors, such as liquidity constraints, that may have had an impact
on actual decision making. The hypothetical performance is the retroactive
application of the strategy designed with the full benefit of hindsight.
Strategy returns reflect a sales charge of 1.85% and estimated annual
operating expenses of 0.448%, plus organization costs, but not taxes or
commissions paid by the portfolio to purchase securities. Returns assume
that all dividends received during a year are reinvested monthly (except the
HSI Index from 12/31/86 through 12/31/92 and the FT Index commencing
8/1/19 which reflect price appreciation only). Returns for the foreign indices
have been adjusted to take into account the effect of currency exchange rate
fluctuations against the U.S. dollar. Actual portfolio performance will vary
from that of investing in the strategy stocks because it may not be invested
equally in these stocks and may not be fully invested at all times. It is
important to note that the strategy may underperform the combined indices
in certain years and may produce negative results.
The DJIA consists of U.S. stocks chosen by the editors of The Wall Street
Journal as being representative of American industry. The HSI is an unmanaged
index of stocks currently listed on the Stock Exchange of Hong Kong Ltd. The
FT Index is an unmanaged index of stocks chosen by the editors of The Financial
Times as being representative of the British industry and commerce. None
of the indices can be purchased directly by investors.
Standard Deviation is a measure of price variability (risk). A higher degree of variability indicates more volatility and therefore greater risk.
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.
You should be aware that the portfolio is concentrated in stocks in the financials sector which involves additional risks, including limited diversification. The companies engaged in the financials sector are 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 potential increased regulation.
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.
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.
Because the portfolio is concentrated in securities issued by
companies headquartered in China and the United Kingdom, the
portfolio may present more risks than a portfolio which is broadly
diversified over several regions.
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 cybersecurity.