Strategic Income Closed-End Portfolio, Series 99
Ticker Symbol: FKRDXX
30 Holdings (As of Day of Deposit) |
Ticker |
Name |
Initial
Weight |
Price* |
High-Yield Bond Funds (33.35%) |
BGH |
Barings Global Short Duration High Yield Fund |
3.34% |
$15.09 |
HYT |
BlackRock Corporate High Yield Fund, Inc. |
3.34% |
9.88 |
DHF |
BNY Mellon High Yield Strategies Fund |
3.33% |
2.54 |
DHY |
Credit Suisse High Yield Bond Fund |
3.33% |
2.09 |
DLY |
DoubleLine Yield Opportities Fund |
3.33% |
16.32 |
NHS |
Neuberger Berman High Yield Strategies Fund Inc. |
3.33% |
8.20 |
HYB |
The New America High Income Fund, Inc. |
3.33% |
8.06 |
GHY |
PGIM Global High Yield Fund Inc. |
3.34% |
12.49 |
ISD |
PGIM High Yield Bond Fund, Inc. |
3.34% |
13.58 |
HIX |
Western Asset High Income Fund II Inc. |
3.34% |
4.40 |
Income & Preferred Stock Funds (23.34%) |
CSQ |
Calamos Strategic Total Return Fund |
3.33% |
16.80 |
LDP |
Cohen & Steers Limited Duration Preferred and Income Fund, Inc. |
3.34% |
20.02 |
RNP |
Cohen & Steers REIT and Preferred and Income Fund, Inc. |
3.33% |
22.55 |
FFC |
Flaherty & Crumrine Preferred and Income Securities Fund Incorporated |
3.33% |
15.62 |
PDT |
John Hancock Premium Dividend Fund |
3.34% |
12.74 |
SCD |
LMP Capital and Income Fund Inc. |
3.33% |
16.38 |
JPC |
Nuveen Preferred & Income Opportunities Fund |
3.34% |
7.75 |
Loan Participation Funds (19.99%) |
DSU |
BlackRock Debt Strategies Fund, Inc. |
3.33% |
10.71 |
BGT |
BlackRock Floating Rate Income Trust |
3.33% |
12.75 |
BGX |
Blackstone Long-Short Credit Income Fund |
3.33% |
12.89 |
BSL |
Blackstone Senior Floating Rate 2027 Term Fund |
3.34% |
14.38 |
BGB |
Blackstone Strategic Credit 2027 Term Fund |
3.33% |
12.27 |
JFR |
Nuveen Floating Rate Income Fund |
3.33% |
8.80 |
Multi-Sector Bond Fund (3.33%) |
TSI |
TCW Strategic Income Fund, Inc. |
3.33% |
5.04 |
U.S. Mortgage Bond Funds (6.67%) |
BKT |
BlackRock Income Trust |
3.34% |
12.43 |
JLS |
Nuveen Mortgage and Income Fund |
3.33% |
18.10 |
World Income Funds (13.32%) |
FAX |
abrdn Asia-Pacific Income Fund, Inc. |
3.33% |
2.83 |
AWF |
AllianceBernstein Global High Income Fund, Inc. |
3.33% |
11.01 |
TEI |
Templeton Emerging Markets Income Fund |
3.33% |
5.56 |
EHI |
Western Asset Global High Income Fund Inc. |
3.33% |
7.15 |
*As of the close of business on 8/22/24.
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 |
8/23/2024 |
Initial Public Offering Price |
$10.00 per Unit |
Portfolio Ending Date |
8/24/2026 |
Historical 12-Month Distribution Rate of Trust Holdings:* |
8.48% |
Historical 12-Month Distribution Per Unit:* |
$0.8481 |
Cash
CUSIP |
30337K189 |
Reinvestment
CUSIP |
30337K197 |
Fee Accounts Cash CUSIP |
30337K205 |
Fee Accounts Reinvestment CUSIP |
30337K213 |
*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 |
0.390% |
0.390% |
|
|
|
Operating Expenses |
0.218% |
0.218% |
Acquired Fund Fees and Expenses^ |
3.804% |
3.804% |
Total Estimated Annual Trust Operating Expenses |
4.022% |
4.022% |
^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 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.