New York Municipal Income Select Closed-End Portfolio, Series 68
Americans deal with a number of different taxes in their everyday lives, perhaps none more
noticeable than individual income taxes. In fact, individual income taxes comprise the largest
component of Americans’ tax bill. By investing in federal tax-exempt municipal bonds, investors
have the potential for significant tax savings. For investors in higher tax brackets, municipals can
offer greater after-tax yields than taxable debt securities of similar maturities and credit quality,
including Treasuries and corporate bonds.
Portfolio Objective
This unit investment trust seeks monthly income that is exempt from federal and New York
state income taxes by investing in a pool of closed-end funds that invest primarily in New York
municipal bonds. However, certain distributions paid by certain funds may be subject to federal
and New York state income taxes. In addition, a portion of the income may be subject to the
alternative minimum tax. There is no assurance the objective will be met.
Closed-End Features
Portfolio Control
Since closed-end funds maintain a relatively fixed pool of investment
capital, portfolio managers are better able to adhere to their investment philosophies through
greater flexibility and control. In addition, closed-end funds don’t have to manage fund liquidity
to meet potentially large redemptions.
Income Distributions
Closed-end funds are structured to generally provide a more stable
income stream than other managed fixed-income investment products because they are not
subjected to cash inflows and outflows, which can dilute dividends over time. However, as a
result of bond calls, redemptions and advanced refundings, which can dilute a fund’s income, the
portfolio cannot guarantee consistent income. Although the portfolio’s objective seeks monthly
tax-free income, there is no assurance the objective will be met.
| Not FDIC Insured • Not Bank Guaranteed • May Lose Value |
You should carefully consider the portfolio's investment objectives,
risks, and charges and expenses 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 which invest in municipal bonds.
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.
All of the closed-end funds employ the use of leverage, which increases the volatility of such funds.
All of the closed-end 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.
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. The portfolio is also subject to
additional risks as a result of its concentration in bonds issued by
New York municipalities, including a deterioration of the
economic factors affecting the state.
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.
The COVID-19 global pandemic has caused significant volatility and declines in global financial markets,
causing losses for investors. The development of vaccines has slowed the spread of the virus and allowed
for the resumption of “reasonably” normal business activity in the United States, although many countries
continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective
against emerging 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. The markets for credit instruments, including municipal
securities, have experienced periods of extreme illiquidity and volatility.
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.
For a discussion of additional risks of investing in the trust see the "Risk Factors" section of the prospectus.