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California Municipal Income Closed-End And ETF Portfolio, Series 7
Ticker Symbol: FESSDX

14 Holdings (As of Day of Deposit)
Ticker Name Initial
Weight
Price*
Closed-End Funds (67%)
BFZ BlackRock California Municipal Income Trust 9.00% $12.14
MUC BlackRock MuniHoldings California Quality Fund, Inc. 9.00% 11.46
EVM Eaton Vance California Municipal Bond Fund 4.00% 9.76
VCV Invesco California Value Municipal Income Trust 9.00% 11.37
NKX Nuveen California AMT-Free Quality Municipal Income Fund 8.00% 13.85
NCA Nuveen California Municipal Value Fund 5.50% 9.19
NAC Nuveen California Quality Municipal Income Fund 8.00% 11.97
NXC Nuveen California Select Tax-Free Income Portfolio 2.00% 13.88
PCQ PIMCO California Municipal Income Fund 6.00% 9.94
PCK PIMCO California Municipal Income Fund II 1.50% 6.17
PZC PIMCO California Municipal Income Fund III 5.00% 7.48
ETFs (33%)
FCAL First Trust California Municipal High Income ETF 11.00% 50.29
PWZ Invesco California AMT-Free Municipal Bond ETF 11.00% 25.10
CMF iShares California Muni Bond ETF 11.00% 57.93

*As of the close of business on 9/12/24
Market values are for reference only and are not indicative of your individual cost basis.


Not FDIC Insured • Not Bank Guaranteed • May Lose Value

Portfolio Summary
Initial Date of Deposit 9/13/2024
Initial Public Offering Price $10.00 per Unit
Portfolio Ending Date 12/15/2025
Historical 12-Month Distribution Rate of Trust Holdings:* 3.62%
Historical 12-Month Distribution Per Unit:* $0.3616
Taxable Equivalent 12-Month Distribution Rate** 7.89%
Cash CUSIP 30337J745
Fee Accounts Cash CUSIP 30337J752

*There is no guarantee the issuers of the securities included in the trust will declare dividends or distributions in the future. The historical 12-month distribution per unit and historical 12-month distribution rate of the securities included in the trust are for illustrative purposes only and are not indicative of the trust’s distribution or distribution rate. The historical 12-month distribution per unit is based on the weighted average of the trailing 12-month distributions paid by the securities included in the portfolio. The historical 12-month distribution rate is calculated by dividing the historical 12-month distributions by the trust’s offering price. The historical 12-month distribution and rate are reduced to account for the effects of fees and expenses, which will be incurred when investing in a trust. Distributions may include realized short term capital gains, realized long-term capital gains and/or return of capital. Certain of the issuers may have reduced their dividends or distributions over the prior 12 months. The distribution per unit and rate paid by the trust may be higher or lower than the amount shown above due to certain factors that may include, but are not limited to, a change in the dividends or distributions paid by issuers, actual expenses incurred, or the sale of securities in the portfolio. **As of 6/25/24. The taxable equivalent annualized distribution rate is for illustrative purposes only. This information illustrates approximately what you would have to earn on taxable investments to equal the tax-exempt annualized distribution rate using the highest federal and California state tax brackets and Medicare tax for 2024. This information is based on present law as of the date of publication and does not account for any proposed changes in tax rates. This information does not account for limitations on deductions, the alternative minimum tax or taxes other than federal and California state personal income tax and Medicare tax.


Fee Table (based on a $10 public offering price per unit)
  Standard Fee/Wrap
Deferred Sales Charge 1.35%
Creation & Development Fee (C&D Fee) 0.50% 0.50%
Maximum Sales Charge 1.85% 0.50%
     
Estimated Organization Costs 0.390% 0.390%
     
Operating Expenses 0.215% 0.215%
Acquired Fund Fees and Expenses^ 1.124% 1.124%
Total Estimated Annual Trust Operating Expenses 1.339% 1.339%

^Although not actual trust operating expenses, the trust, and therefore unit holders, will indirectly bear similar operating expenses of the funds in which the trust invests. These expenses are estimated and are subject to change in the future.

The deferred sales charge will be deducted in three monthly installments commencing 12/20/24. When the public offering price is less than or equal to $10.00 per unit, there will be no initial sales charge. If the price exceeds $10.00 per unit, you will pay an initial sales charge. The C&D fee is a charge of $0.050 per unit collected at the end of the initial offering period. If the price you pay exceeds $10.00 per unit, the C&D fee will be less than 0.50%; if the price you pay is less than $10.00 per unit, the C&D fee will exceed 0.50%. Estimated organization costs will be deducted from the assets of the trust at the end of the initial offering period. Estimated organization costs and trust operating expenses are assessed on a fixed dollar amount per unit basis which, as a percentage of average net assets, will vary over time. Actual expenses may be more or less than the estimates. Please see “Fee Table” in the trust prospectus for additional information.

You should consider the portfolio's investment objectives, risks, and charges and expenses carefully before investing. Contact your financial professional or call First Trust Portfolios L.P. at 1.800.621.1675 to request a prospectus, which contains this and other information about the portfolio. Read it carefully before you invest.

Risk Considerations
An investment in this unmanaged unit investment trust should be made with an understanding of the risks associated with an investment in a portfolio of CEFs and ETFs.

Closed-end funds and ETFs are subject to various risks, including management’s ability to meet the fund’s investment objective, and to manage the fund’s portfolio when the underlying securities are redeemed or sold, during periods of market turmoil and as investors’ perceptions regarding the funds or their underlying investments change. Unlike open-end funds, which trade at prices based on a current determination of the fund’s net asset value, ETFs and closed-end funds frequently trade at a discount from their net asset value in the secondary market. The funds employ the use of leverage which increases the volatility of such funds.

The portfolio is also subject to additional risks as a result of its concentration in bonds issued by California municipalities, including a deterioration of the economic factors affecting the state.

Investment grade securities are subject to numerous risks including higher interest rates, economic recession, deterioration of the investment grade bond market or investors’ perception thereof, possible downgrades and defaults of interest and/or principal.

Municipal bonds are subject to numerous risks, including higher interest rates, economic recession, deterioration of the municipal bond market, possible downgrades and defaults of interest and/or principal.

As the use of Internet technology has become more prevalent in the course of business, the trust has become more susceptible to potential operational risks through breaches in cybersecurity.

Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, the Middle East and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain investments as well as performance.

The ongoing effects of the COVID-19 global pandemic, or the potential impacts of any future public health crisis, may cause significant volatility and uncertainty in global financial markets. While vaccines have been developed, there is no guarantee that vaccines will be effective against future variants of the disease.

It is important to note that an investment can be made in the underlying funds directly rather than through the trust. These direct investments can be made without paying the trust’s sales charge, operating expenses and organization costs.

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. The markets for credit instruments, including municipal securities, have experienced periods of extreme illiquidity and volatility.

This UIT is a buy and hold strategy and investors should consider their ability to hold the trust until maturity. There may be tax consequences unless units are purchased in an IRA or other qualified plan.

For a discussion of additional risks of investing in the trust see the “Risk Factors” section of the prospectus.

 

CUSIP identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by FactSet Research Systems Inc. and are not for use or dissemination in a manner that would serve as a substitute for any CUSIP service. The CUSIP Database, ©2024 CUSIP Global Services. "CUSIP" is a registered trademark of the American Bankers Association.

Fund Cusip Information
30337J745 (Cash)
30337J752 (Cash-Fee)
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The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
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