High-Yield Income Closed-End Portfolio, Series 111
Ticker Symbol: FIUUGX
16 Holdings (As of Day of Deposit) |
Ticker |
Name |
Initial
Weight |
Price* |
EAD |
Allspring Income Opportunities Fund |
7.00% |
$7.03 |
BGH |
Barings Global Short Duration High Yield Fund |
7.00% |
15.07 |
HYT |
BlackRock Corporate High Yield Fund, Inc. |
8.00% |
9.84 |
BLW |
BlackRock Limited Duration Income Trust |
5.00% |
14.12 |
DHF |
BNY Mellon High Yield Strategies Fund |
7.00% |
2.55 |
DHY |
Credit Suisse High Yield Bond Fund |
8.00% |
2.10 |
DSL |
DoubleLine Income Solutions Fund |
3.00% |
12.70 |
DLY |
DoubleLine Yield Opportities Fund |
7.00% |
15.91 |
VLT |
Invesco High Income Trust II |
3.00% |
10.94 |
NHS |
Neuberger Berman High Yield Strategies Fund Inc. |
7.00% |
8.02 |
HYB |
The New America High Income Fund, Inc. |
4.00% |
7.51 |
GHY |
PGIM Global High Yield Fund Inc. |
8.00% |
12.36 |
ISD |
PGIM High Yield Bond Fund, Inc. |
8.00% |
13.55 |
HIX |
Western Asset High Income Fund II Inc. |
5.00% |
4.36 |
HIO |
Western Asset High Income Opportunity Fund Inc. |
5.00% |
3.95 |
HYI |
Western Asset High Yield Defined Opportunity Fund Inc. |
8.00% |
11.90 |
*As of the close of business on 8/1/24.
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 |
8/2/2024 |
Initial Public Offering Price |
$10.00 per Unit |
Portfolio Ending Date |
8/3/2026 |
Historical 12-Month Distribution Rate of Trust Holdings:* |
8.92% |
Historical 12-Month Distribution Per Unit:* |
$0.8924 |
Cash CUSIP |
30337H269 |
Reinvestment CUSIP |
30337H277 |
Fee Account Cash CUSIP |
30337H285 |
Fee Account Reinvestment CUSIP |
30337H293 |
*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.
Fee Table (based on a $10 public offering
price per unit) |
|
Standard |
Fee/Wrap |
Deferred Sales Charge |
2.25% |
— |
Creation & Development Fee (C&D Fee) |
0.50% |
0.50% |
Maximum Sales Charge |
2.75% |
0.50% |
|
|
|
Estimated Organization Costs |
0.420% |
0.420% |
|
|
|
Operating Expenses |
0.218% |
0.218% |
Acquired Fund Fees and Expenses^ |
2.439% |
2.439% |
Total Estimated Annual Trust Operating Expenses |
2.657% |
2.657% |
^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 11/20/24. 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 high-yield closed-end funds.
Closed-end funds 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, closed-end
funds frequently trade at a discount to their net asset value in the secondary market. Certain closed-end funds may employ the use of leverage, which increases the volatility of such funds.
All of the funds invest in floating-rate securities. A floating-rate security is an instrument in which the interest rate payable on the obligation fluctuates on a periodic basis based upon changes in an interest rate
benchmark. As a result, the yield on such a security will generally decline in a falling interest rate environment, causing the trust to experience a reduction in the income it receives from such securities.
All of the funds invest in high-yield securities or “junk” bonds. Investing in high-yield securities should be viewed as speculative and you should review your ability to assume the risks associated with investments
that utilize such bonds. High-yield securities are subject to numerous risks including higher interest rates, economic recession, deterioration of the junk bond market, possible downgrades and defaults of interest and/or
principal. High-yield security prices tend to fluctuate more than higher rated bonds and are affected by short-term credit developments to a greater degree.
Certain of the funds invest in limited duration bonds. Limited duration bonds are subject to interest rate risk, which is the risk that the value of a security will fall if interest rates increase. While limited duration
bonds are generally subject to less interest rate sensitivity than longer duration bonds, there can be no assurance that interest rates will not rise during the life of the trust.
Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers.
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
organizational 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.
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.