Biotechnology Portfolio, Series 48
While biotechnology has already had a significant impact on the diagnosis, treatment and prevention of
diseases, we believe further advances could potentially bring about radically new approaches to health
care. We are in a new era in medical research and health care made possible by the exponential growth in
knowledge of gene structure and function. The Human Genome Project has opened new doors to
breakthrough research. At the start of the project in 1990, scientists had discovered fewer than 100 human
disease genes. After completion of the project, more than 1,400 disease genes had been identified.1
Research and development has afforded many patients access to new and better medicines that are
allowing them to maintain their normal lives, instead of being debilitated by a disease. In fact, some
diseases once considered fatal have now evolved into “chronic diseases” that can be managed, due in
large measure to advances in diagnostic procedures and new medicines developed by biotechnology and
Consider the following factors:
- More than 250 biotechnology health care products and vaccines are currently available to patients,
many for previously untreatable diseases.2
- Biotechnology is becoming more involved in the agriculture sector. Agricultural biotechnology benefits
farmers, consumers and the environment by increasing yields and farm income, decreasing pesticide
applications and improving soil and water quality, and providing healthful foods for consumers. More
than 13.3 million farmers globally use agricultural biotechnology.3
- We believe the outlook for long-term investing remains quite encouraging due to promising drug
launches, cost-cutting efforts, an aging population, increasing health care spending, increased merger
& acquisition activity and expansion into emerging markets.
2,3 Biotechnology Innovation Organization
This unit investment trust seeks above-average capital appreciation; however, there is
no assurance the objective will be met.
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.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
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 biotechnology and pharmaceutical companies
in the health care sector which involves additional risks, including limited diversification. The companies
engaged in the biotechnology and pharmaceutical industries are subject to fierce competition, substantial
research and development costs, governmental regulations, pricing constraints, and their products and
services may be subject to rapid obsolescence. Biotechnology and pharmaceutical stocks have experienced
extreme price and volume fluctuations that are often unrelated to their operating performance. In addition,
implementation of the Health Care and Education Affordability Reconciliation Act of 2010 continues to have
significant implications for companies in the health care sector.
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.
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 qualified plan.
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 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.