The portfolio seeks to provide current income and the potential for capital appreciation. The portfolio seeks to achieve its objective by investing in an income-oriented portfolio consisting of common stocks, closed-end funds that elect to be treated as BDCs and preferred securities.
||Feb 13, 2013
|Scheduled Primary Offering Period
||Feb 13, 2013 - May 14, 2013
|Term of Trust
||Feb 11, 2015
Regulated Investment Company
|Public Offering Price
(End of deposit date)
|Maximum Sales Charge
|Sales Charge Schedule
|Sales Charge Volume Discount
|Est. Net Annual Income1
|Initial Payable Date2
||Mar 25, 2013
|Initial Record Date2
||Mar 10, 2013
||Reinvest, Cash, Wrap Reinvest, Wrap Cash
|Estimated Frequency of Offering
Investors in fee-based accounts will not be assessed the initial or deferred sales charges for
eligible fee-based purchases and must purchase units with a Wrap Fee CUSIP.
|Weighted Avg P/E:
|Weighted Avg P/B:
|Weighted Avg Market Cap (MM):
|Weighted Avg PEG Ratio:
|Weighted Avg Beta:
There is no assurance a trust will achieve its investment objective. An investment in these unit investment trusts are subject to market risk, which is the possibility that the market values of securities owned by the trust will decline and that the value of trust units may therefore be less than what you paid for them. Accordingly, you can lose money investing in these trusts.
Common stocks do not assure dividend payments. Dividends are paid only when declared by an issuer’s board of directors and the amount of any dividend may vary over time.
Certain securities in the Portfolio, as well as certain of the securities held by the underlying funds in the Portfolio, may be rated below investment grade and considered to be "junk" securities. These securities are considered to be speculative and are subject to greater market and credit risks. Accordingly, the risk of default is higher than with investment grade securities. In addition, these securities may be more sensitive to interest rate changes and may be more likely to make early returns of principal.
The financial condition of a security issuer may worsen or its credit ratings may drop, resulting in a reduction in the value of your Units. This may occur at any point in time, including during the initial offering period.
The Portfolio invests in preferred securities. Preferred securities are typically subordinated to bonds and other debt instruments in a company's capital structure in terms of priority to corporate income and therefore are subject to greater risk than those debt instruments. Preferred securities are subject to interest rate risk, meaning that their values may fall if interest rates, in general, rise. In addition to the other risks described herein, income payments on certain preferred securities may be deferred for 20 consecutive quarters or more, which may reduce the amount of income you receive on your Units.
The Portfolio invests in MLPs. Most MLPs operate in the energy, natural resources or real estate sectors and are subject to the risks generally applicable to companies in those sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. MLPs are also subject the risk that U.S. taxing authorities could challenge the tax treatment of MLPs for federal income tax purposes which could have a negative impact on the after-tax income available for distribution by the MLPs and/or the value of the Portfolio's investments.
The Portfolio invests in shares of closed-end funds. In particular, shares of closed-end funds tend to trade at a discount from their net asset value and are subject to risks related to factors such as management's ability to achieve a fund's objective, market conditions affecting a fund's investments and use of leverage. The Portfolio and the underlying funds have management and operating expenses. You will bear not only your share of the Portfolio's expenses, but also the expenses of the underlying funds. By investing in other funds, the Portfolio incurs greater expenses than you would incur if you invested directly in the funds.
The Portfolio invests in shares of publicly traded business development companies (“BDCs”). BDCs invest in privately-held companies, the securities of which are generally less liquid than are publicly traded securities. BDCs may have relatively concentrated investment portfolios, consisting of a relatively small number of holdings. A BDC’s gains and losses may be magnified through the use of leverage. BDCs generally depend on access to capital markets in order to raise cash, acquire suitable investments and monitor and implement certain financial strategies. An inability to access these markets may have a negative impact on the value of BDC shares and the value of your units. Many debt investments in which BDCs invest will not be rated by a credit rating agency and will be below investment grade quality.
The Portfolio invests in shares of REITs and other real estate companies. These shares may appreciate or depreciate in value, or pay dividends depending upon global and local economic conditions, changes in interest rates and the strength or weakness of the real estate market.