Strategic Income Select Closed-End, 52  Ticker: FAOJRX
 
Description
A unit investment trust that seeks a high rate of current monthly income, with capital appreciation as a secondary objective. The trusts invests in broad range of closed-end funds.
Please note that there is no assurance the objective will be met.
 
Summary
Product Code: ST2Y52
Portfolio Status: Secondary
Initial Offer Date: 06/25/2021
Secondary Date: 08/03/2021
Portfolio Ending Date: 06/26/2023
Tax Structure: Regulated Investment Company
Distributions: Monthly
 
Initial Offer Price: $10.0000
NAV(*): $9.3443
POP(*): $9.5594
Remaining Deferred Sales Charge: $0.1500
* As of Trade Date: 10/22/2021 4:00pm ET
The Public Offering Price (POP) represents the net asset value per unit plus any applicable organization costs and sales charges. The Net Asset Value (NAV) represents the value per unit of a trust’s portfolio securities and other assets reduced by applicable deferred sales charges and other liabilities.

 Historical 12-Month Distribution of Trust Holdings:^
Rate (as of 10/22/2021) Per Unit (as of 10/22/2021)
6.75% $0.64530
^ There is no guarantee the issuers of the securities included in the trust will declare dividends or distributions in the future. The historical 12-month distribution per unit and historical 12-month distribution rate of the securities included in the trust are for illustrative purposes only and are not indicative of the trust's distribution or distribution rate. The historical 12-month distribution per unit is based on the weighted average of the trailing twelve month distributions paid by the securities included in the portfolio. The historical 12-month distribution rate is calculated by dividing the historical 12-month distributions by the trust's offering price. The historical 12-month distribution and rate are reduced to account for the effects of fees and expenses, which will be incurred when investing in a trust. Certain of the issuers may have reduced their dividends or distributions over the prior twelve months. The distribution per unit and rate paid by the trust may be higher or lower than the amount shown above due to certain factors that may include, but are not limited to, a change in the dividends or distributions paid by issuers, actual expenses incurred, or the sale of securities in the portfolio. For trusts that include funds, distributions may include realized short term capital gains, realized long-term capital gains and/or return of capital.

 Holdings  Export Current Holdings | View Initial Holdings  
NameSymbolWeighting
 Liberty All-Star Growth Fund, Inc. ASG 3.18%
 ClearBridge Energy Midstream Opportunity Fund Inc. EMO 3.10%
 Eaton Vance Tax-Advantaged Dividend Income Fund EVT 3.09%
 Pioneer Diversified High Income Fund Inc. HNW 3.07%
 Nuveen Floating Rate Income Opportunity Fund JRO 3.05%
 Calamos Strategic Total Return Fund CSQ 3.02%
 Nuveen Core Equity Alpha Fund JCE 3.02%
 Pioneer High Income Fund Inc. PHT 3.01%
 Aberdeen Global Premier Properties Fund AWP 3.01%
 Wells Fargo Multi-Sector Income Fund ERC 3.00%
 Nuveen Tax-Advantaged Total Return Strategy Fund JTA 3.00%
 LMP Capital and Income Fund Inc. SCD 2.98%
 Barings Global Short Duration High Yield Fund BGH 2.97%
 Nuveen Senior Income Fund NSL 2.96%
 KKR Income Opportunities Fund KIO 2.94%
 Eaton Vance Limited Duration Income Fund EVV 2.93%
 John Hancock Income Securities Trust JHS 2.90%
 John Hancock Investors Trust JHI 2.90%
 Aberdeen Total Dynamic Dividend Fund AOD 2.90%
 Virtus Global Multi-Sector Income Fund VGI 2.89%
 Cushing NextGen Infrastructure Income Fund SZC 2.89%
 The Gabelli Equity Trust Inc. GAB 2.88%
 BlackRock Credit Allocation Income Trust BTZ 2.88%
 Nuveen Global High Income Fund JGH 2.88%
 Delaware Investments Dividend and Income Fund DDF 2.87%
 Royce Value Trust, Inc. RVT 2.86%
 Franklin Limited Duration Income Trust FTF 2.84%
 Templeton Emerging Markets Income Fund TEI 2.82%
 Western Asset Premier Bond Fund WEA 2.82%
 Western Asset Global High Income Fund Inc. EHI 2.82%
 Aberdeen Asia-Pacific Income Fund, Inc. FAX 2.80%
 Western Asset Emerging Markets Debt Fund Inc. EMD 2.78%
 Aberdeen Australia Equity Fund, Inc. IAF 2.73%
 Voya Emerging Markets High Dividend Equity Fund IHD 2.56%
 
Total Number of Holdings:    34
Underlying Securities information represented above is as of 10/22/2021 but will vary with future fluctuations in the market.

 Deferred Sales Charge Schedule
Amount Date
$0.07500 October 20, 2021
$0.07500 November 19, 2021
$0.07500 December 20, 2021

Risk Considerations

Brexit Risk. About one year after the United Kingdom officially departed the European Union (commonly referred to as "Brexit"), the United Kingdom and the European Union reached a trade agreement that became effective on December 31, 2020. It is not currently possible to determine the extent of the impact the Brexit trade agreement may have on the portfolio's investments and this uncertainty could negatively impact current and future economic conditions in the United Kingdom and other countries, which could negatively impact the value of the portfolio's investments.

Buy & Hold Risk – Taxable Trusts. 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.

Closed-End Fund Risk. Closed-end funds are subject to various risks, including management's ability to meet the fund's investment objective, and to manage the fund's portfolio when the underlying securities are redeemed or sold, during periods of market turmoil and as investors' perceptions regarding the funds or their underlying investments change. Unlike open-end funds, which trade at prices based on a current determination of the fund's net asset value, closed-end funds frequently trade at a discount to their net asset value in the secondary market. Certain closed-end funds employ the use of leverage, which increases the volatility of such funds.

Covenant-Lite Loan Risk. Certain of the funds invest significantly in "covenant-lite" loans, which are loans made with minimal protections for the lender. Because covenant-lite loans are less restrictive on borrowers and provide less protection for lenders than typical corporate loans, the risk of default may be significantly higher.

COVID-19 Economic Impact Risk. The COVID-19 global pandemic has caused significant volatility and declines in global financial markets, causing losses for investors. The development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, although many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

Emerging Markets Risk. 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.

Floating Rate LIBOR Risk. Certain of the floating-rate securities pay interest based on LIBOR. The United Kingdom's Financial Conduct Authority, which regulates LIBOR, will cease making LIBOR available as a reference rate over a phase-out period that will begin immediately after December 31, 2021. The unavailability or replacement of LIBOR may affect the value, liquidity or return on certain portfolio investments. Any potential effects of the transition away from LIBOR can be difficult to ascertain, and they may vary depending on a variety of factors and they could result in losses to the portfolio.

Floating Rate Risk. Certain of the funds invest in floating-rate securities. A floating-rate security is an instrument in which the interest rate payable on the obligation fluctuates on a periodic basis based upon changes in an interest rate benchmark. As a result, the yield on such a security will generally decline in a falling interest rate environment, causing the trust to experience a reduction in the income it receives from such securities.   

Foreign Securities Risk. An investment in securities of foreign issuers should be made with an understanding of the additional risks involved, such as currency fluctuations, political risk, withholding, the lack of adequate financial information, and exchange control restrictions impacting foreign issuers.

High-Yield or Junk Bonds Risk. Investing in high-yield securities or "junk" bonds should be viewed as speculative and you should review your ability to assume the risks associated with investments which utilize such securities. High-yield securities are subject to numerous risks, including higher interest rates, economic recession, deterioration of the junk bond 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.

Investment Grade Bonds Risk. Investment grade securities are subject to numerous risks including higher interest rates, economic recession, deterioration of the investment grade security market or investors' perception thereof, possible downgrades and defaults of interest and/or principal.

Preferred Securities Risk. Preferred securities are equity securities of the issuing company which pay income in the form of dividends. Preferred securities are typically subordinated to bonds and other debt instruments in a company's capital structure, and therefore will be subject to greater credit risk than those debt instruments.

Senior Loans Risk. The yield on senior loans will generally decline in a falling interest rate environment and increase in a rising interest rate environment. Senior loans are generally below investment grade quality ("junk" bonds). An investment in senior loans involves the risk that the borrowers may default on their obligations to pay principal or interest when due.

Volatility Risk. 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.

Additional Risk. For a discussion of additional risks of investing in the trust see the "Risk Factors" section of the prospectus.

Important Note. It is important to note that an investment can be made in the underlying funds directly rather than through the trust. These direct investments can be made without paying the trust's sales charge, operating expenses and organizational costs.

Operational Risk. 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.

You should carefully consider the trust's investment objectives, risks, and charges and expenses 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 trust. Read it carefully before you invest.

This product information does not constitute an offer to sell, or a solicitation of an offer to buy securities in any state to any person to whom it is not lawful to make such an offer. Sales of any of these securities must include prospectus delivery and the services of a retail broker/dealer duly licensed in the appropriate states.

Not FDIC Insured, Not Bank Guaranteed and May Lose Value.