The portfolio seeks an attractive level of current income by investing in a portfolio primarily consisting of preferred securities. The portfolio was selected by Cohen & Steers Capital Management, Inc., ("Cohen & SteersSM") as the portfolio consultant.
Read more
Fact Card
Prospectus
Supplement
| Offer Price: |
$10.12400 |
| WRAP Price: |
$9.84060 |
| Bid Price: |
$9.96970 |
| Liquidation Price: |
$9.76970 |
| Deposit Date |
Feb 15, 2013 |
| Scheduled Primary Offering Period |
Feb 15, 2013 - May 16, 2013 |
| Symbol |
PFOP0021 |
| NASDAQ Symbol |
IPOYPX |
| Term of Trust |
39 months |
| Termination Date |
May 19, 2016 |
| Tax Status |
Regulated Investment Company
|
Public Offering Price
(End of deposit date) |
$10.00000 |
| Maximum Sales Charge |
3.50% |
| Sales Charge Schedule |
View Regular
|
| Sales Charge Volume Discount |
View Regular
|
| Est. Net Annual Income1 |
$0.540290 |
| Initial Payable Date2 |
Apr 25, 2013 |
| Initial Record Date2 |
Apr 10, 2013 |
| Re-Investment Options |
Reinvest, Cash, Wrap Reinvest, Wrap Cash |
| Estimated Frequency of Offering |
3 months |
| CUSIPs |
Regular CUSIP |
Wrap Fee |
| Cash CUSIP |
46133L189 |
46133L205 |
| Re-invest CUSIP |
46133L197 |
46133L213 |
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.
There is no assurance the trust will achieve its investment objective. An investment in this unit investment trust is 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. This trust is unmanaged and its portfolio is not intended to change during the trust's life except in limited circumstances. Accordingly, you can lose money investing in this trust.
An investment in the trust should be made with an understanding of the risks associated with an investment in a portfolio of preferred securities, such as the inability of the issuer to pay the principal of or income on a security when due, volatile interest rates, early call provisions and changes to the tax status of the securities.
The portfolio invests exclusively in preferred securities, including hybrid and trust preferred securities. Hybrid-preferred securities are preferred securities typically issued by corporations, generally in the form of interest-bearing notes or preferred securities and may be perpetual in duration or may have a stated maturity. Trust preferred securities are similar to hybrid securities, but are typically issued by an affiliated business trust of a corporation, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. Preferred securities do not generally have the growth potential of common stocks. They are also sensitive to interest rate changes and the market price generally falls with rising interest rates. In addition, they are more likely to be called for redemption in a declining interest rate environment. In the event of an issuer's bankruptcy, preferred securities will not be repaid until the issuer's other debt securities, which have priority, have been satisfied. Income payments on certain preferred securities may generally be deferred without default, although such payments will continue to accrue until paid.
The trust is concentrated in banks and other companies in the financial services industry and may present more risk than a more diversified investment. There are certain risks specific to the financial services sector, including the potential adverse effects of economic recession, volatile interest rates, and state and federal regulations.
Securities of foreign companies held by the funds in the portfolio present risks beyond those of U.S. issuers. These risks may include company's foreign market, international trade conditions, less regulation, smaller or less liquid markets, increased volatility, differing accounting practicesand changes in the value of foreign currencies.
The portfolio will receive early returns of principal if securities are called or sold before the portfolio termination. If this happens your portfolio income will decline and you may not be able to reinvest the money you receive at as high a yield. In addition, the value of your units may decline if any portfolio securities trading at a premium are called at par.
Certain preferred securities in the portfolio are 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.