Sei sulla pagina 1di 4

EQUITY - DIVIDEND STRATEGIES

Series 2019-3Q, ADT 1961

High 50® Dividend Strategy Portfolio


// Quantitative Strategy

Morningstar Equity Style BoxTM


Investment Objective & Strategy
The High 50® Dividend Strategy Portfolio is a unit investment trust (UIT) comprised of 50 stocks
selected by applying a specialized dividend-oriented strategy that seeks above-average total
return. The stocks are approximately 2% per name and approximately 10% weight (as of the date
of deposit and may vary thereafter) in each of the nine Global Industry Classification Standard
(GICS®) sectors other than the Financials and Real Estate sectors, and approximately 10%
weight from the Financials and Real Estate GICS® sectors combined (for a total of 50 securities).
The trust invests in these 50 stocks in approximately equal weightings. Effectively, after
Ticketing Information September 1, 2016, the strategy seeks to treat the new Real Estate GICS ® sector as if it was still
positioned under the Financials GICS® sector (as it was prior to September 1, 2016).
CUSIP (Cash/Reinvest) 00779Y708 / 716
Fee-Based CUSIP (Cash/Reinvest) 00779Y724 / 732
Ticker Symbol HIFARX Key Points to Consider
Essential Information 1. Potential for income growth: Though many dividends were cut or discontinued during the
Unit price at inception (per unit) $10.000 last recession, this is now generally reversing. The S&P 500 has paid out 8.92% more
Initial redemption price (per unit) $9.8650 dividends over the 12-month period ending 8/30/19 when compared to the previous 12 months
Initial date of deposit 9/10/2019
Portfolio ending date 12/10/2020 (8/31/17-8/31/18).*
Distribution frequency Monthly, if any 2. Demographics: As baby boomers near retirement, their portfolio objectives generally
Historical 12-Month Distribution rotate away from accumulation and toward distribution. This rotation creates opportunities in
Rate of Trust Holdings* 6.29% income-producing assets.
*The distribution rate paid by the trust may be higher or 3. Dividends are real: Typically, once dividends are paid, corporations cannot renege on a
lower than the amount shown above due to factors dividend and can’t reinstate a dividend. Dividends help minimize inefficient spending at the
including, but not limited to, changes in the price of trust
units, changes (including reductions) in distributions paid by
corporate level. Over the last 20 years (8/31/99-8/30/19), 46.14% of the total return of the S&P
issuers, changes in actual trust expenses and sales of 500 has come from the reinvestment of dividends.
securities in the portfolio. There is no guarantee that the
issuers of the securities included in the trust will pay any Past performance is no guarantee of future results.
distributions in the future. The Historical 12-Month
*Source: Bloomberg
Distribution Rate of Trust Holdings is calculated by taking
the weighted average of the regular income distributions
paid by the securities included in the trust’s portfolio over
the 12 months preceding the trust’s date of deposit reduced
to account for the effects of trust fees and expenses. The
percentage shown is based on a $10 unit price. This
historical rate is for illustrative purposes only and is not
indicative of amounts that will actually be distributed by the
trust.
Sales Charges (Based on $10 unit price)+
As a % of $10 Amount per
Standard Accounts unit price 100 units
Initial sales fee 0.00% $0.00
Deferred sales fee 1.35% $13.50
Creation & Development fee 0.50% $5.00
Maximum sales fee 1.85% $18.50
As a % of $10 Amount per
Fee-Based Accounts unit price 100 units
Maximum sales fee 0.50% $5.00
+The initial sales fee is the difference between the total
sales fee (maximum of 1.85% of the unit offering price) and
the sum of the remaining deferred sales fee and the total
creation and development fee. The deferred sales fee is
fixed at $0.135 per unit and is paid in three monthly
installments beginning December 20, 2019. The creation
and development fee is fixed at $0.05 per unit and is paid
at the end of the initial offering period (anticipated to be
approximately three months). When the public offering
price per unit is less than or equal to $10, you will not pay
an initial sales fee. When the public offering price per unit
price is greater than $10 per unit, you will pay an initial
sales fee. The initial and deferred sales fees may not apply Page 1 of 4
to fee-based accounts. See the prospectus for more details
about fee-based account eligibility requirements. Advisors Asset Management, Inc. (AAM) is a SEC registered investment advisor and member FINRA/SIPC.
High 50® Dividend Strategy Portfolio Series 2019-3Q, ADT 1961

Portfolio Holdings (as of date of deposit)


Ticker Market Value Ticker Market Value
Symbol Issue Name Per Share* Symbol Issue Name Per Share*
Communication Services (9.97%) Industrials (10.03%)
AMC $11.68 AYR $22.64
T 36.79 CVA 17.20
CTL 11.96 FLR 20.44
IPG 21.07 MIC 39.35
MDP 34.90 PCAR 70.47
Consumer Discretionary (9.98%) Information Technology (9.98%)
BBBY 10.48 AVGO 292.61
F 9.54 IBM 142.60
LB 17.87 NTAP 54.78
M 16.18 WDC 62.75
TPR 24.29 WU 23.30
Consumer Staples (10.02%) Materials (10.02%)
MO 44.04 CC 15.84
BGS 19.02 CMP 52.67
KHC 28.08 GEF/B 43.82
PM 73.30 KRO 11.94
VGR 12.80 WRK 35.95
Energy (10.05%) Utilities (9.96%)
AM 7.24 CWEN/A 16.73
CVI 42.00 D 76.67
HP 41.72 PEGI 27.07
OXY 44.97 PPL 29.35
SLB 36.23 SO 59.02
Financials (9.99%) *As of 9/9/2019 and may vary thereafter.
AGNC 15.34
NLY 8.38 Holdings Style Summary
CLNC 13.45 % of Portfolio
NRZ 14.81 Large-Cap Blend 5.98%
TWO 13.15 Large-Cap Value 26.01%
Health Care (10.00%) Mid-Cap Blend 6.04%
ABBV 66.70 Mid-Cap Value 27.98%
CAH 46.82 Small-Cap Blend 11.94%
GILD 66.33 Small-Cap Growth 2.00%
PDCO 17.11 Small-Cap Value 18.05%
PFE 36.83 N/A 2.00%
Source: Morningstar
As of 9/9/2019 and may vary thereafter. Breakdowns are based on the sources shown and
may differ from any category definitions used in selecting the trust portfolio.

Page 2 of 4

Intelligent Investments. Independent Ideas.


High 50® Dividend Strategy Portfolio Series 2019-3Q, ADT 1961

Annual Total Returns1


High 50® Dividend
Year Strategy
S&P 500 Index

2009 42.09% 26.45%


2010 18.95% 15.08%
2011 6.12% 2.08%
2012 7.68% 15.98%
2013 24.71% 32.36%
2014 9.64% 13.65%
2015 -13.73% 1.38%
2016 22.38% 11.93%
2017 7.80% 21.80%
2018 -14.44% -4.39%
20191 1.14% 18.34%
1Through 8/31/2019

Average Annual Total Returns2


High 50® Dividend
S&P 500 Index
Strategy
10 Yrs 9.91% 13.10%
5 Yrs 1.32% 8.47%
3 Yrs 4.12% 9.24%
1 Yr -14.44% -4.39%

Standard Deviation2
High 50® Dividend
S&P 500 Index
Strategy
10 Yrs 17.17% 11.55%
These are hypothetical portfolio returns of the High 50 ® Dividend Strategy (“strategy”) but not the trust or any prior 5 Yrs 16.00% 10.38%
series of the trust. AAM created its first High 50® Dividend Strategy Portfolio Series on June 12, 2003. The strategy was
created with the benefit of hindsight. Past performance is not indicative of future results and actual performance of the 3 Yrs 18.54% 13.23%
portfolio may be lower or higher than the future performance of the strategy. Some of these returns are the result of 2Through 12/31/2018. Average Annual Total Return
extraordinary market events and are not expected to be repeated. Strategy performance is based on a calendar year
reflects annualized change. Standard deviation is a
strategy and, while trusts may be created at various times during the year, they generally have 15-month terms.
measure of price volatility (risk). A higher degree
Consult your tax advisor for possible tax consequences associated with this investment. Units may be well suited for an
of variability indicates more volatility and therefore
IRA or other qualified plan. Please see the prospectus for more information.
greater risk.
Hypothetical strategy returns reflect a maximum sales charge of 1.85%, plus additional trust fees and expenses, but do
not include brokerage commission or taxes. Returns assume that all dividends received during a year are reinvested
semi-annually. In addition, the strategy’s hypothetical performance will vary from that of investing in the High 50 ®
Dividend Strategy stocks because it may not be weighted the same as the strategy stocks and may not be fully
invested at all times. Investors should also be aware that the strategy may lose money or underperform the index in
any given year. The S&P 500 Index is an index of stocks compiled by Standard & Poor’s, a division of the McGraw-Hill
Companies, Inc. Returns are not adjusted for trust sales fees and expenses, as they are not available to invest in
directly. Prior to the market close on August 31, 2016, there were ten GICS ® sectors and after the market close on
August 31, 2016, a new Real Estate GICS® sector was added, elevating its position from under the Financials GICS®
sector, bringing the total number of GICS® sectors to eleven. Prior to August 31, 2016, the High 50 ® Dividend Strategy
selected five securities from (after the application of certain screens) each of the then existing ten GICS ® sectors. After
August 31, 2016, the High 50® Dividend Strategy selects five securities from each of the nine GICS ® sectors other than
the Financials and Real Estate sectors and five additional securities from the Financials and Real Estate GICS ® sectors
combined (for a total of 50 securities) after the application of certain screens. The hypothetical back-tested
performance for 2016 and earlier are based on the High 50 ® Dividend Strategy with ten GICS® sectors. Effectively,
after September 1, 2016 the strategy seeks to treat the new Real Estate GICS ® sector as if it was still positioned under
the Financials GICS® sector (as it was prior to September 1, 2016).

Page 3 of 4

Intelligent Investments. Independent Ideas.


High 50® Dividend Strategy Portfolio Series 2019-3Q, ADT 1961

Unit Investment Trusts (UITs) are sold only by prospectus. You should consider the trust’s investment objectives, risks, charges and expenses carefully
before investing. Contact your financial professional or visit Advisors Asset Management online at www.aamlive.com/uit to obtain a prospectus, which
contains this and other information about the trust. Read it carefully before you invest.

Risks and Considerations: Unit values will fluctuate with the portfolio of underlying securities and may be worth more or less than the original purchase price at
the time of redemption. There is no guarantee that the objective of the portfolio will be achieved. Additionally, the trust may terminate earlier than the specific
termination date as stated in the prospectus. Consult your tax advisor for possible tax consequences associated with this investment. An investment in this
unmanaged unit investment trust should be made with an understanding of the risks associated therewith which includes, but is not limited to:

Common Stock: An investment in common stocks should be made with an understanding of the various risks of owning common stock, such as an economic
recession and the possible deterioration of either the financial condition of the issuers of the equity securities or the general condition of the stock market.
Dividend Payment Risk: An issuer of a security may be unwilling or unable to pay income on a security. Common stocks do not assure dividend payments and are
paid only when declared by an issuer’s board of directors. The amount of any dividend may vary over time.
Long-Term Strategy: The UIT matures in 15 months and, as such, investors should consider their ability to reinvest any proceeds in a subsequent UIT, if available,
with a like or differing strategy, at the applicable sales charge.
Small & Mid-Size Companies: The trust is considered to be concentrated in securities issued by small and mid-size companies. These stocks are often more
volatile and have lower trading volumes than stocks of larger companies. Small and mid-size companies may have limited products or financial resources,
management inexperience and less publicly available information.
The Morningstar Equity Style Box™: This table provides a graphical representation of the investment style of a trust based on holdings as of the date of deposit
which may vary thereafter. The Morningstar Equity Style Box™ placement is based on the Morningstar market capitalization classification (determined relative to
other stocks in the same geographic area) of the stocks in the trust’s portfolio (vertical axis), and by comparing the growth and value characteristics of the stocks in
the trust’s portfolio with growth and value factors developed by Morningstar (horizontal axis). Value, blend and growth are types of investment styles. Growth
investing generally seeks stocks that offer the potential for greater-than-average earnings growth, and may entail greater risk than value or blend investing. Value
investing generally seeks stocks that may be sound investments but are temporarily out of favor in the marketplace, and may entail less risk than growth investing.
A blended investment combines the two styles. ©2019 Morningstar, Inc. All Rights Reserved. The information contained herein relating to the Morningstar Equity
Style Box™: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Securities are available through your financial professional. Not FDIC Insured. Not Bank Guaranteed. May Lose Value.
For informational purposes only and not a recommendation to purchase or sell any security.
©2019 Advisors Asset Management
Advisors Asset Management, Inc. (AAM) is a SEC registered investment advisor and member FINRA/SIPC.
18925 Base Camp Road | Monument, CO 80132 | www.aamlive.com | CRN: 2018-0614-6714 R Link 5406

Page 4 of 4

Intelligent Investments. Independent Ideas.