DAILY DATA
Pricing as of 5/24/2012
| Offer Price1 |
$8.991500
|
| Bid Price2 |
$8.921400
|
| Liquidation Price3 |
$8.776400
|
1 The "offer" price represents the net asset value of one unit of a trust plus a transactional sales charge, if applicable.
2 The "bid" price represents the net asset value of one unit of a trust excluding deferred sales charge, if applicable.
3 The "liquidation" price represents the net asset value of one unit of a trust and includes any front-end and deferred sales charges, if applicable, accounted for if investors liquidate units.
4 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 Trust’s portfolio is constructed and the securities were selected five business days prior to the initial date of deposit (the “Security Selection Date”) using the Security Selection Rules and the Portfolio Diversification & Concentration Rules outlined below.
Security Selection Rules:
In constructing the Trust’s portfolio, 30 securities were selected based on the following fundamentally based quantitative criteria as of the Security Selection Date. Except as set forth herein, the investment strategy utilizes information provided by Bloomberg L.P.
1. Start with an initial universe of securities that includes all non-U.S. headquartered companies with equity securities listed on the New York Stock Exchange (“NYSE”) and the NASDAQ® Stock Market (“NASDAQ”).
2. Reduce the initial universe of securities to a sub-universe that includes all securities that meet the following requirements:
- Market capitalization greater than $5 billion. Market capitalization is determined by the closing price as of the Security Selection Date.
- Free float over 20% of common shares outstanding. Free float is provided by Bloomberg L.P. and is defined as the number of shares that are available to the public and is calculated by subtracting the shares held by insiders and those deemed to be stagnant shareholders from the shares outstanding. Stagnant holders include employee stock ownership plans, employee share ownership trusts, qualifying employee share ownership trusts, employee benefit trusts, corporations not actively managing money, venture capital companies and shares held by governments. The number of shares is stated in millions.
- Minimum liquidity of $0.5 million. Liquidity is determined by the average 20 day trading volume in U.S. dollars and is calculated as the average of a 20 trading day look back from the Security Selection Date (i.e., trading volume in shares multiplied by the closing price for the day).
- Minimum one year price history for each non-U.S. headquartered company’s equity security traded on the NYSE and NASDAQ, as of the Security Selection Date. • Minimum three-year price history for each non-U.S. headquartered company’s primary equity security, as designated by Bloomberg L.P. If a company has several listings or tickers, Bloomberg L.P. selects the fundamental ticker based on “listing dates, country of domicile, and liquidity.”
- Duplication screen so that in the event a parent company has multiple classes of securities that meet the above criteria, the class that has the greatest market capitalization is considered for final selection.
3. Dividend Yield Rule: Select from the subuniverse above the 30 securities, as of the Security Selection Date, with the highest rankings for the average of the trailing three years of actual dividend yield. The actual dividend yield for each subuniverse security is measured for the prior three yearly periods, with the yearly periods ending on the Security Selection Date. Each yearly period’s actual dividend yield is measured as all dividends earned during the yearly period divided by starting security price. Securities are eligible for selection if the actual dividend yield in each of the prior three yearly periods is greater than the median actual dividend yield for all names in the sub-universe for that yearly period. Median dividend yield is defined as the specific dividend yield that separates the higher half of the annual dividend yields of the sub-universe of securities from the lower half of the annual dividend yields of the sub-universe of securities. The 30 securities are subject to the Portfolio Diversification & Concentration Rules below.
Portfolio Diversification & Concentration Rules:
The Trust’s portfolio will consist of 30 securities, equally weighted as of the Security Selection Date, using the Security Selection Rules outlined above that also satisfy the Portfolio Diversification & Concentration Rules below:
1. Sector Diversification: The Trust’s portfolio must consist of securities from a minimum of six of the Global Industry Classification Standards (“GICS”) sectors, with no more than 25% of the Trust’s portfolio in any single GICS sector as of the Security Selection Date.
2. Geographical Diversification: The Trust’s portfolio must consist of securities from companies headquartered in at least 10 different countries with no more than 20% of the Trust’s portfolio from any single country as of the Security Selection Date.
3. If the Trust portfolio does not consist of securities from a minimum of six GICS sectors, those securities originally selected for the Trust portfolio that have the lowest average 12-quarter dividend yield as of the Security Selection Date are replaced with securities in the sub-universe that have the next-highest average 12-quarter dividend yield and that are also classified by GICS as belonging to an unrepresented sector in the trust portfolio. This substitution process is repeated until the Trust portfolio contains securities from a minimum of six GICS sectors. Similarly, if more than 25% of the Trust portfolio is represented by a single GICS sector, the securities from that sector with the lowest average 12-quarter dividend yield are replaced with securities in the sub-universe that have the next-highest average 12-quarter dividend yield and that are also classified in a different GICS sector.
4. If the Trust portfolio does not consist of securities of companies headquartered in at least 10 different countries, those securities originally selected for the Trust portfolio that have the lowest average 12-quarter dividend yield as of the Security Selection Date are replaced with securities in the sub-universe that have the next-highest average 12-quarter dividend yield and that are also securities of companies located in an unrepresented country in the Trust portfolio. This substitution process is repeated until the Trust portfolio contains securities of companies headquartered in at least 10 different countries. Similarly, if more than 20% of the Trust portfolio is represented by securities of companies headquartered in a single country, the securities of companies headquartered in that country with the lowest average 12-quarter dividend yield are replaced with securities in the sub-universe that have the next-highest average 12-quarter dividend yield and that are also securities of companies located in a different country.
Please note that due to the fluctuating nature of security prices, the weighting of an individual security or sector in the Trust portfolio may change after the Security Selection Date. In the event that any diversification or concentration limit is breached in the construction of the Trust’s portfolio, the lowest dividend-yielding security that breached the limit is removed and the Dividend Yield Rule is reapplied until a portfolio of 30 securities is generated that satisfies both the Security Selection Rules and the Portfolio Diversification & Concentration Rules.
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. Starting in December 2007, economic activity declined across all sectors of the economy, and most countries experienced increased unemployment. The economic crisis affected the global economy with European and Asian markets also suffering historic losses. Standard & Poor’s Rating Services lowered its long-term sovereign credit rating on the United States to “AA+” from “AAA,” which could lead to increased interest rates and volatility. Extraordinary steps have been taken by the governments of several leading countries to combat the economic crisis; however, the impact of these measures is not yet fully known and cannot be predicted.
- The Trust invests in U.S.-listed foreign securities and American Depositary Receipts (“ADRs”). The Trust’s investment in U.S.-listed foreign securities and ADRs presents additional risk. ADRs are issued by a bank or Trust company to evidence ownership of underlying securities issued by foreign corporations. Securities of foreign issuers present risks beyond those of domestic securities. More specifically, foreign risk is the risk that foreign securities will be more volatile than U.S. securities due to such factors as adverse economic, currency, political, social or regulatory developments in a country, including government seizure of assets, excessive taxation, limitations on the use or transfer of assets, the lack of liquidity or regulatory controls with respect to certain industries or differing legal and/or accounting standards.
- The Trust includes securities issued by companies headquartered or incorporated in countries considered to be emerging markets. Emerging markets are generally defined as countries with low per capita income in the initial stages of their industrialization 8 Investment Summary cycles. Risks of investing in developing or emerging countries include the possibility of investment and trading limitations, liquidity concerns, delays and disruptions in settlement transactions, political uncertainties and dependence on international trade and development assistance. Companies headquartered in emerging market countries may be exposed to greater volatility and market risk.
- 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.
- Inflation may lead to a decrease in the value of assets or income from investments.
- The Sponsor does not actively manage the portfolio. The Trust will generally hold, and may, when creating additional units, continue to buy, the same securities even though a security’s outlook, market value or yield may have changed.
See “Investment Risks” in Part A of the prospectus and “Risk Factors” in Part B of the prospectus for additional information
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, LLC, does not offer tax advice.