Preferred Income Portfolio, Series 123
Ticker Symbol: FOTICX
Holdings (As of 7/31/24) |
Ticker |
Name of Issuer of Securities |
Issue
Date |
S&P
Rating* |
Initial
Weight |
Redemption
Provisions** |
Market
Value Per
Share*** |
AEFC |
Aegon Funding Company LLC, 5.100%, Due 12/15/2049 |
10/22/2019 |
BBB– |
4.50% |
12/15/24 @ 25 |
$21.18 |
MGRB |
Affiliated Managers Group, Inc., 4.750%, Due 09/30/2060 |
9/23/2020 |
BBB– |
2.00% |
09/30/25 @ 25 |
19.13 |
TBB |
AT&T Inc., 5.350%, Due 11/01/2066 |
10/27/2017 |
BBB |
1.00% |
08/28/24 @ 25 |
22.77 |
ATHS |
Athene Holding Ltd., 7.25% Variable Rate, Due 03/30/2064 |
3/7/2024 |
BBB |
4.01% |
03/30/29 @ 25 |
25.20 |
AXS.E |
Axis Capital Holdings Limited, Series E, 5.500% |
11/7/2016 |
BBB |
4.00% |
08/28/24 @ 25 |
21.63 |
BAC.S |
Bank of America Corporation, Series SS, 4.750% |
1/31/2022 |
BBB– |
4.00% |
02/17/27 @ 25 |
20.96 |
BIPI |
BIP Bermuda Holdings I, 5.125% |
1/21/2022 |
BBB– |
0.50% |
01/21/27 @ 25 |
17.68 |
BEPH |
Brookfield BRP Holdings (Canada) Inc., 4.625% |
4/15/2021 |
BBB– |
1.50% |
04/30/26 @ 25 |
15.87 |
BEPI |
Brookfield BRP Holdings (Canada) Inc., 4.875% |
12/9/2021 |
BBB– |
2.50% |
12/09/26 @ 25 |
16.71 |
BNH |
Brookfield Finance Inc., Series 50, 4.625%, Due 10/16/2080 |
10/16/2020 |
BBB |
1.75% |
10/16/25 @ 25 |
17.05 |
BNJ |
Brookfield Finance I (UK) Plc, 4.500% |
11/24/2020 |
BBB |
1.00% |
11/24/25 @ 25 |
16.19 |
BIPH |
Brookfield Infrastructure Finance ULC, 5.00%, Due 05/24/2081 |
5/24/2021 |
BBB– |
1.50% |
05/24/26 @ 25 |
17.47 |
SCHW.J |
The Charles Schwab Corporation, Series J, 4.450% |
3/30/2021 |
BBB– |
3.50% |
06/01/26 @ 25 |
20.43 |
CFR.B |
Cullen/Frost Bankers Inc., Series B, 4.450% |
11/19/2020 |
BBB– |
2.50% |
12/15/25 @ 25 |
18.06 |
EAI |
Entergy Arkansas, LLC, 4.875%, Due 09/01/2066 |
8/16/2016 |
A |
1.50% |
08/29/24 @ 25 |
22.06 |
ELC |
Entergy Louisiana, LLC, 4.875%, Due 09/01/2066 |
8/17/2016 |
A |
1.00% |
08/29/24 @ 25 |
22.02 |
EQH.A |
Equitable Holdings, Inc., Series A, 5.250% |
11/27/2019 |
BBB |
1.50% |
12/15/24 @ 25 |
22.07 |
EQH.C |
Equitable Holdings, Inc., Series C, 4.300% |
1/8/2021 |
BBB |
1.25% |
03/15/26 @ 25 |
18.48 |
FGN |
F&G Annuities & Life, Inc., 7.95%, Due 12/15/2053 |
12/6/2023 |
BBB– |
4.50% |
12/15/28 @ 25 |
26.26 |
GL.D |
Globe Life Inc., 4.250%, Due 06/15/2061 |
6/14/2021 |
BBB+ |
1.50% |
06/15/26 @ 25 |
17.19 |
JPM.L |
JPMorgan Chase & Co., Series LL, 4.625% |
5/20/2021 |
BBB– |
4.00% |
06/01/26 @ 25 |
21.37 |
KIM.L |
Kimco Realty Corporation, Series L, 5.125% (1) |
8/16/2017 |
BBB– |
2.00% |
08/29/24 @ 25 |
21.58 |
KIM.M |
Kimco Realty Corporation, Series M, 5.250% (1) |
12/20/2017 |
BBB– |
2.50% |
08/29/24 @ 25 |
22.06 |
KKRS |
KKR Group Finance Co. IX LLC, 4.625%, Due 04/01/2061 |
3/31/2021 |
BBB+ |
1.50% |
04/01/26 @ 25 |
19.71 |
MET.F |
MetLife, Inc., Series F, 4.750% |
1/15/2020 |
BBB |
4.00% |
03/15/25 @ 25 |
20.58 |
MS.P |
Morgan Stanley, Series P, 6.500% |
8/2/2022 |
BBB– |
4.01% |
10/15/27 @ 25 |
25.65 |
PFH |
Prudential Financial, Inc., 4.125%, Due 09/01/2060 |
8/21/2020 |
BBB+ |
2.00% |
09/01/25 @ 25 |
19.29 |
PRH |
Prudential Financial, Inc., 5.950%, Due 09/01/2062 |
8/17/2022 |
BBB+ |
2.50% |
09/01/27 @ 25 |
25.90 |
PSA.P |
Public Storage, Series P, 4.000% (1) |
6/16/2021 |
BBB+ |
2.50% |
06/16/26 @ 25 |
17.73 |
PSA.R |
Public Storage, Series R, 4.000% (1) |
11/19/2021 |
BBB+ |
2.00% |
11/19/26 @ 25 |
17.82 |
RZC |
Reinsurance Group of America, Incorporated, 7.125%, Variable Rate, Due 10/15/2052 |
9/23/2022 |
BBB+ |
4.50% |
10/15/27 @ 25 |
25.86 |
RNR.G |
RenaissanceRe Holdings Ltd., Series G, 4.200% |
7/12/2021 |
BBB |
2.50% |
07/15/26 @ 25 |
18.18 |
SREA |
Sempra, 5.750%, Due 07/01/2079 |
6/26/2019 |
BBB– |
4.50% |
10/01/24 @ 25 |
23.86 |
SOJE |
The Southern Company, Series C, 4.200%, Due 10/15/2060 |
9/18/2020 |
BBB |
3.50% |
10/15/25 @ 25 |
20.07 |
TPGXL |
TPG Operating Group II, L.P., 6.950%, Due 03/15/2064 |
3/4/2024 |
BBB– |
1.49% |
03/15/29 @ 25 |
25.86 |
TFC.O |
Truist Financial Corporation, Series O, 5.250% |
5/27/2020 |
BBB– |
1.00% |
06/01/25 @ 25 |
22.75 |
TFC.R |
Truist Financial Corporation, Series R, 4.750% |
8/3/2020 |
BBB– |
3.49% |
09/01/25 @ 25 |
20.35 |
USB.R |
U.S. Bancorp, Series M, 4.000% |
2/2/2021 |
BBB |
2.00% |
04/15/26 @ 25 |
17.72 |
USB.S |
U.S. Bancorp, Series O, 4.500% |
2/9/2022 |
BBB |
2.00% |
04/15/27 @ 25 |
20.17 |
WRB.H |
W.R. Berkley Corporation, 4.125%, Due 03/30/2061 |
2/10/2021 |
BBB– |
2.50% |
03/30/26 @ 25 |
18.64 |
*As of the initial date of deposit. The ratings are by Standard & Poor’s and are unaudited. A credit rating is an
assessment provided by a nationally recognized statistical
rating organization (NRSRO), including Standard
& Poor’s Rating Group, of the creditworthiness of an issuer with respect to debt obligations. Standard & Poor’s
ratings are measured on a scale ranging from AAA (highest) to D (lowest). Sub-investment grade ratings are
those rated BB+ or lower. Investment grade ratings
are those rated BBB- or higher.
**The securities are first redeemable on the date and price listed. Certain of the securities have provisions
which would allow for their redemption prior to the earliest
stated call date pursuant to the occurrence of
certain extraordinary events.
***As of the close of business on 7/30/24. Market values are for reference only and are not indicative of your
individual cost basis.
(1) These securities represent preferred stocks or trust preferred securities of REITs. REITs comprise
approximately 9.00% of the investments of the Trust.
The trust’s sponsor purchases consulting services used for security selection and portfolio supervision from Raymond James & Associates, Inc.
Not FDIC Insured Not Bank Guaranteed May Lose Value |
Portfolio Summary |
Initial Date of Deposit |
7/31/2024 |
Initial Public Offering Price |
$10.00 per Unit |
Portfolio Ending Date |
7/31/2026 |
Historical 12-Month Distribution Rate of Trust Holdings:1 |
4.81% |
Historical 12-Month Distribution Per Unit:1 |
$0.4813 |
Cash CUSIP |
30337H228 |
Reinvest CUSIP |
30337H236 |
Fee Accounts Cash CUSIP |
30337H244 |
Fee Accounts Reinvest CUSIP |
30337H251 |
Average Number of Years of Call Protection2 |
1.78 Years |
1There 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. PLEASE NOTE: The historical distribution rate is
calculated using only the holdings that have 12-months of distribution history as of the date of deposit. As of
the date of deposit, there were three holdings without the required 12-month distribution history which was
excluded from the calculation, representing 10.00% of the aggregate market value of the portfolio. 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.
2Average number of years until the securities in the portfolio are callable, prohibiting an issuer from
redeeming or buying it back over a specified period, on average.
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 |
0.320% |
0.320% |
Estimated Annual Trust Operating Expenses |
0.218% |
0.218% |
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 involved with owning preferred stocks and trust preferred securities,
such as an economic recession, volatile interest rates and the possible deterioration of either the financial
condition of the issuers of the trust preferred securities or the general condition of the stock market.
You should be aware that the portfolio is concentrated in preferred stocks and trust preferred securities issued
by companies in the financials sector which involves additional risks, including limited diversification. The
financials sector is subject to the adverse effects of volatile interest rates, economic recession, decreases
in the availability of capital, increased competition from new entrants in the field, and the potential for
increased regulation. Preferred stocks and trust preferred securities are typically subordinated to bonds
and other debt instruments
in a company’s capital structure, in terms of priority to corporate income, and
therefore will be subject to greater credit risk than those debt instruments.
Certain of the securities in the portfolio are issued by Real Estate Investment Trusts (REITs). Companies
involved in the real estate industry are subject to changes in the real estate market, vacancy rates and
competition, volatile interest rates and economic recession.
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.
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.