Strategic Income Closed-End Portfolio, Series 97
Ticker Symbol: FYTVZX
30 Holdings (As of Day of Deposit) |
Ticker |
Name |
Initial
Weight |
Price* |
High-Yield Bond Funds (33.33%) |
EAD |
Allspring Income Opportunities Fund |
3.33% |
$6.62 |
BGH |
Barings Global Short Duration High Yield Fund |
3.33% |
14.40 |
HYT |
BlackRock Corporate High Yield Fund, Inc. |
3.34% |
9.73 |
DHF |
BNY Mellon High Yield Strategies Fund |
3.33% |
2.42 |
DHY |
Credit Suisse High Yield Bond Fund |
3.33% |
2.06 |
DSL |
DoubleLine Income Solutions Fund |
3.33% |
12.47 |
NHS |
Neuberger Berman High Yield Strategies Fund Inc. |
3.34% |
8.00 |
HYB |
The New America High Income Fund, Inc. |
3.33% |
7.25 |
GHY |
PGIM Global High Yield Fund Inc. |
3.33% |
12.04 |
HIO |
Western Asset High Income Opportunity Fund Inc. |
3.34% |
3.82 |
Income & Preferred Stock Funds (16.67%) |
RNP |
Cohen & Steers REIT and Preferred and Income Fund, Inc. |
3.34% |
19.98 |
FFC |
Flaherty & Crumrine Preferred and Income Securities Fund Incorporated |
3.33% |
14.47 |
FLC |
Flaherty & Crumrine Total Return Fund Incorporated |
3.34% |
15.29 |
PDT |
John Hancock Premium Dividend Fund |
3.33% |
11.33 |
JPC |
Nuveen Preferred & Income Opportunities Fund |
3.33% |
7.36 |
Investment Grade Bond Fund (3.34%) |
VBF |
Invesco Bond Fund |
3.34% |
16.15 |
Loan Participation Funds (20.00%) |
FRA |
BlackRock Floating Rate Income Strategies Fund, Inc. |
3.33% |
13.02 |
BGT |
BlackRock Floating Rate Income Trust |
3.33% |
12.89 |
BGB |
Blackstone Strategic Credit 2027 Term Fund |
3.33% |
12.03 |
EFT |
Eaton Vance Floating-Rate Income Trust |
3.34% |
13.51 |
EFR |
Eaton Vance Senior Floating-Rate Trust |
3.33% |
13.16 |
JFR |
Nuveen Floating Rate Income Fund |
3.34% |
8.72 |
Multi-Sector Bond Funds (6.67%) |
CIK |
Credit Suisse Asset Management Income Fund, Inc. |
3.34% |
3.04 |
TSI |
TCW Strategic Income Fund, Inc. |
3.33% |
4.72 |
U.S. Mortgage Bond Funds (6.67%) |
BKT |
BlackRock Income Trust |
3.34% |
11.77 |
JLS |
Nuveen Mortgage and Income Fund |
3.33% |
17.96 |
World Income Funds (13.32%) |
FAX |
abrdn Asia-Pacific Income Fund, Inc. |
3.33% |
2.70 |
AWF |
AllianceBernstein Global High Income Fund, Inc. |
3.33% |
10.61 |
MSD |
Morgan Stanley Emerging Markets Debt Fund, Inc. |
3.33% |
7.37 |
EDD |
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. |
3.33% |
4.72 |
*As of the close of business on 6/17/24.
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 |
6/18/2024 |
Initial Public Offering Price |
$10.00 per Unit |
Portfolio Ending Date |
6/18/2026 |
Historical 12-Month Distribution Rate of Trust Holdings:* |
8.51% |
Historical 12-Month Distribution Per Unit:* |
$0.8511 |
Cash
CUSIP |
30336F801 |
Reinvestment
CUSIP |
30336F819 |
Fee Accounts Cash CUSIP |
30336F827 |
Fee Accounts Reinvestment CUSIP |
30336F835 |
*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.
Sales Charges (based on a $10 public offering
price) |
Standard Accounts |
Transactional Sales Charges: |
Initial: |
0.00% |
|
Deferred: |
2.25% |
Creation & Development Fee: |
|
0.50% |
Maximum Sales Charge: |
|
2.75% |
Fee/Wrap Accounts |
Maximum Sales Charge: |
|
0.50% |
The deferred sales charge will be deducted in three monthly installments commencing 9/20/24. 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 maximum sales charge for investors in fee
accounts consists of the C&D fee. Investors in fee accounts are not assessed any transactional sales charges.
Standard accounts sales charges apply to units purchased as an ineligible asset. 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%. In addition to the sales charges listed, UITs are subject to annual operating expenses and
organization costs.
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 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
from their net asset value in the secondary market. Certain closed-end
funds in which the portfolio invests employ the use of leverage, which
increases the volatility of such funds.
Certain 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.
Certain 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 which
utilize such securities. 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 securities and are affected by short-term credit developments to a greater degree.
Certain of the funds invest in investment grade securities. Investment grade securities are subject to numerous risks including higher interest rates, economic recession, deterioration of the investment grade security market
or investors’ perception thereof, possible downgrades and defaults of interest and/or principal.
Certain of the funds invest in senior loan securities. The yield on funds which invest in senior loans will generally decline in a falling interest rate environment and increase in a rising interest rate environment. Senior loans are
generally below investment grade quality (“junk” bonds). An investment in senior loans involves the risk that the borrowers may default on their obligations to pay principal or interest when due.
Certain of the funds invest in covenant-lite loans which contain fewer or no maintenance covenants and may hinder the closed-end funds’ ability to reprice credit risk and mitigate potential loss especially during a downturn
in the credit cycle.
Certain of the funds invest in preferred securities. Preferred securities are equity securities of the issuing company which pay income in the form of dividends. Preferred securities are typically subordinated to bonds and other
debt instruments in a company’s capital structure, and therefore will be subject to greater credit risk than those debt instruments.
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.
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.
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.
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.