DEPOSIT INFORMATION
| Inception Date |
8/19/2009 |
| Mandatory Maturity Date |
8/24/2011 |
| NASDAQ Ticker Symbol |
CGROBX |
| Trust Structure |
Grantor |
| Inception Unit Price |
$10.000000 |
| Inception Bid Price1 |
$9.900000 |
| Maturity Price (as of 8/24/2011)2 |
$11.756400 |
| Historical Annual Dividend Distribution3 |
$0.306900 |
| CUSIP - Monthly-Cash |
18387D643 |
| CUSIP - Monthly-Reinvest |
18387D650 |
| CUSIP - Monthly-Fee/Reinvest |
18387D676 |
| CUSIP - Monthly-Fee/Cash |
18387D668 |
1 The "Inception Bid Price" represents the net asset value of one unit of a trust excluding any deferred sales charge, if applicable.
2 The "Maturity Price" represents the proceeds per unit received by unitholders upon termination of the trust.
3 The Historical Annual Dividend Distribution is as of date of deposit. The amount of distributions of the Trust may be lower or greater than the above-stated amount due to certain factors that may include, but are not limited to, a change in the dividends paid by issuers, a change in Trust expenses or the sale or maturity of securities in the portfolio. Fees and expenses of the Trust may vary as a result of a variety of factors including the Trust's size, redemption activity, brokerage and other transaction costs and extraordinary expenses.
SELECTION CRITERIA
The Sponsor selects U.S.-traded companies that it believes are core holdings of a well-diversified dividend-paying portfolio as of the Trust’s initial date of deposit (the “Inception Date”). To select the portfolio the Sponsor follows a disciplined process that includes both quantitative screening and qualitative analysis.
The Sponsor begins with a universe of all dividend paying companies traded in the United States as of the date of the security selection. The Sponsor then reduces the universe to approximately 100 companies by performing quantitative screening, which may be primarily based on, but not limited to, the following factors:
- Dividend Growth: The Sponsor favors companies with a history of growing its dividend.
- Cash Dividend Coverage: The Sponsor favors companies with a recent history of increasing dividend coverage ratios (defined as funds from operations relative to cash dividends to common shareholders).
- Growth: The Sponsor may screen for companies with a history of (and prospects for) above average growth of dividends, sales and earnings.
- Profitability: The Sponsor may screen for companies with a history of consistent and high profitability as measured by return-on-assets, return-on equity, gross margin and net margin.
From this universe of approximately 100 companies, the Sponsor identifies approximately 44 companies for inclusion in the portfolio through a qualitative analysis based on factors such as, but not limited to:
- Cash-flow Adequacy: The Sponsor favors companies with recent earnings and operating cash-flow significantly higher than the dividends paid as of the company’s most recent financial reporting period.
- Balance Sheet: The Sponsor favors companies that possess overall financial strength and exhibit balance sheet improvements relative to their peers and the marketplace.
- Valuation: The Sponsor favors companies whose valuations appear to be attractive based on measures such as price-to-earnings, price-to-book and price-to-cash flow.
- Industry Leadership: The Sponsor favors companies that possess a strong competitive position among their domestic and global peers.
- Growth: The Sponsor favors companies with a history of (and prospects for) above average growth of dividends, sales and earnings.
RISKS AND OTHER CONSIDERATIONS
As with all investments, you may lose some or all of your investment in the Trust. No assurance can be given that the Trust’s investment objective will be achieved. The Trust also might not perform as well as you expect. This can happen for reasons such as these:
- Securities prices can be volatile. The value of your investment may fall over time. Market value fluctuates in response to various factors. These can include stock market movements, purchases or sales of securities by the Trust, government policies, litigation, and changes in interest rates, inflation, the financial condition of the securities’ issuer or even perceptions of the issuer. Units of the Trust are not deposits of any bank and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
- Due to the current state of the economy, 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. In the last year, economic activity has declined across all sectors of the economy, and the United States is experiencing increased unemployment. The current economic crisis has affected the global economy with European and Asian markets also suffering historic losses. Extraordinary steps have been taken by the governments of several leading economic countries to combat the economic crisis; however, the impact of these measures is not yet known and cannot be predicted.
- Share prices or dividend rates on the securities in the Trust may decline during the life of the Trust. There is no guarantee that the issuers of the securities will declare dividends in the future and if declared, whether they will remain at current levels or increase over time.
- The Trust invests in securities issued by small-capitalization and mid-capitalization companies. These securities customarily involve more investment risk than securities of largecapitalization companies. Small-capitalization and mid-capitalization companies may have limited product lines, markets or financial resources and may be vulnerable to adverse general market or economic developments.
- The Trust includes securities of companies in the consumer discretionary and consumer staples sectors. General risks of companies in the consumer discretionary and consumer staples sectors include cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, product liability litigation and increased government regulation. A weak economy and its effect on consumer spending would adversely affect companies in the consumer discretionary and consumer staples sectors.
- The Sponsor does not actively manage the portfolio. The Trust will generally hold, and may continue to buy, the same securities even though a security’s outlook, market value or yield may have changed.
- Inflation may lead to a decrease in the value of assets or income from investments.
Please see the Trust prospectus for more complete risk information.
Unit Investment Trusts (“UITs”) are fixed and not actively managed. An investment in this fixed portfolio should be made with an understanding of the risks involved with owning various types of investments. Industry predictions may not materialize and securities selected for the Trust may not participate in overall industry growth, if any. Units, when redeemed, may be worth more or less than their original purchase price.
This UIT is part of a long-term strategy. Consult an attorney or tax advisor regarding tax consequences associated with an investment from one series to the next, if available. Investors should consult their tax advisor to determine tax consequences associated with the purchase or sale of units. Guggenheim Funds Distributors, Inc. does not offer tax advice.