The Dividend Income Value Strategy Portfolio · CSCO Cisco Systems, Inc. 32.18 INTC Intel...

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EQUITY - DIVIDEND STRATEGIES Series 2017-3Q, ADT 1815 Investment Objective & Strategy The Dividend Income Value Strategy Portfolio is a unit investment trust (UIT) that seeks to provide above-average total return through dividend income and capital appreciation. There is no assurance the trust will achieve its objective. It consists of the following two components: the Dow ® Value Ten and the Value S&P Industrial strategies as of September 7, 2017. Dow ® Value Ten Strategy: 10 stocks, held in approximately equal dollar amounts as of the trust’s inception, with the highest dividend yield chosen from among the 30 stocks in the Dow Jones Industrial Average SM (“DJIA SM ”); and Value S&P Industrials Strategy: 15 stocks, held in approximately equal dollar amounts as of the trust’s inception chosen from among the S&P Industrials Index. Advisors Asset Management, Inc. (AAM) is a SEC registered investment advisor and member FINRA/SIPC. Page 1 of 4 // Quantitative Strategy The Dividend Income Value Strategy Portfolio CUSIP (Cash/Reinvest) Fee-Based CUSIP (Cash/Reinvest) Ticker Symbol Ticketing Information 00775T414 / 422 00775T430 / 448 AAMLMX Unit price at inception (per unit) Initial redemption price (per unit) Initial date of deposit Portfolio ending date Distribution frequency Est. net annual distribution (per unit)* Essential Information + $10.000 $9.8650 9/14/2017 12/19/2018 Monthly, if any $0.2776 + As of 9/13/2017 and may vary thereafter. *The estimate is generally based on the estimate of dividends the trust will receive by annualizing the most recent dividend declared. The per unit estimate will vary with changes in fees and expenses, actual dividends received and with the sales of securities. There is no guarantee that the issuers of the securities included in the trust will declare distributions in the future or that, if declared, will remain at current levels or increase over time. Morningstar Equity Style Box TM Sales Charges (Based on $10 unit price) ++ Standard Accounts As a % of $1,000 invested Amount per 100 units Initial sales fee Deferred sales fee Creation & Development fee Maximum sales fee 0.00% 1.35% 0.50% 1.85% $0.00 $13.50 $5.00 $18.50 ++ The initial sales fee is the difference between the total sales fee (maximum of 1.85% of the unit offering price) and the sum of the remaining deferred sales fee and the total creation and development fee. The deferred sales fee is fixed at $0.135 per unit and is paid in three monthly installments beginning January 20, 2018. The creation and development fee is fixed at $0.05 per unit and is paid at the end of the initial offering period (anticipated to be approximately three months). When the public offering price per unit is less than or equal to $10, you will not pay an initial sales fee. When the public offering price per unit price is greater than $10 per unit, you will pay an initial sales fee. The initial and deferred sales fees may not apply to fee-based accounts. See the prospectus for more details about fee-based account eligibility requirements. Fee-Based Accounts As a % of Fee-Based Public Offering Price Amount per 100 units Maximum sales fee 0.51% $5.00

Transcript of The Dividend Income Value Strategy Portfolio · CSCO Cisco Systems, Inc. 32.18 INTC Intel...

Page 1: The Dividend Income Value Strategy Portfolio · CSCO Cisco Systems, Inc. 32.18 INTC Intel Corporation 36.33 IBM International Business Machines Corporation 145.99 PAYX Paychex, Inc.

EQUITY - DIVIDEND STRATEGIES

Series 2017-3Q, ADT 1815

Investment Objective & Strategy The Dividend Income Value Strategy Portfolio is a unit investment trust (UIT) that seeks to provide above-average total return through dividend income and capital appreciation. There is no assurance the trust will achieve its objective. It consists of the following two components: the Dow® Value Ten and the Value S&P Industrial strategies as of September 7, 2017.

Dow® Value Ten Strategy: 10 stocks, held in approximately equal dollar amounts as of the trust’s inception, with the highest dividend yield chosen from among the 30 stocks in the Dow Jones Industrial AverageSM (“DJIASM”); and

Value S&P Industrials Strategy: 15 stocks, held in approximately equal dollar amounts as of the trust’s inception chosen from among the S&P Industrials Index.

Advisors Asset Management, Inc. (AAM) is a SEC registered investment advisor and member FINRA/SIPC.

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// Quantitative Strategy

The Dividend Income Value Strategy Portfolio

CUSIP (Cash/Reinvest)

Fee-Based CUSIP (Cash/Reinvest) Ticker Symbol

Ticketing Information

00775T414 / 422 00775T430 / 448

AAMLMX

Unit price at inception (per unit) Initial redemption price (per unit) Initial date of deposit Portfolio ending date Distribution frequency Est. net annual distribution (per unit)*

Essential Information+

$10.000 $9.8650

9/14/2017 12/19/2018

Monthly, if any $0.2776

+As of 9/13/2017 and may vary thereafter. *The estimate is generally based on the estimate of dividends the trust will receive by annualizing the most recent dividend declared. The per unit estimate will vary with changes in fees and expenses, actual dividends received and with the sales of securities. There is no guarantee that the issuers of the securities included in the trust will declare distributions in the future or that, if declared, will remain at current levels or increase over time.

Morningstar Equity Style BoxTM

Sales Charges (Based on $10 unit price)++

Standard Accounts As a % of $1,000

invested Amount per

100 units

Initial sales fee Deferred sales fee Creation & Development fee Maximum sales fee

0.00% 1.35% 0.50% 1.85%

$0.00 $13.50 $5.00

$18.50

++The initial sales fee is the difference between the total sales fee (maximum of 1.85% of the unit offering price) and the sum of the remaining deferred sales fee and the total creation and development fee. The deferred sales fee is fixed at $0.135 per unit and is paid in three monthly installments beginning January 20, 2018. The creation and development fee is fixed at $0.05 per unit and is paid at the end of the initial offering period (anticipated to be approximately three months). When the public offering price per unit is less than or equal to $10, you will not pay an initial sales fee. When the public offering price per unit price is greater than $10 per unit, you will pay an initial sales fee. The initial and deferred sales fees may not apply to fee-based accounts. See the prospectus for more details about fee-based account eligibility requirements.

Fee-Based Accounts As a % of Fee-Based Public Offering Price

Amount per 100 units

Maximum sales fee 0.51% $5.00

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Series 2017-3Q, ADT 1815

Intelligent Investments. Independent Ideas.

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Portfolio Holdings (as of date of deposit)

Ticker Symbol

Issue Name

Market Value Per Share*

Consumer Discretionary (9.96%)

LOW Lowe’s Companies, Inc. $77.86

OMC Omnicom Group, Inc. 73.65

VFC V.F. 63.08

Consumer Staples (36.64%)

CLX The Clorox 134.08

KO The Coca-Cola 46.87

CL Colgate-Palmolive 71.65

CVS CVS Health 83.08

DPS Dr. Pepper Snapple Group, Inc. 91.73

GIS General Mills, Inc. 55.29

HSY The Hershey 109.42

HRL Hormel Foods 31.33

PEP PepsiCo, Inc. 114.45

PG The Procter & Gamble 93.55

Energy (10.01%)

CVX Chevron Corporation 114.18

XOM Exxon Mobil Corporation 79.77

Health Care (5.01%)

PFE Pfizer, Inc. 35.06

Ticker Symbol

Issue Name

Market Value Per Share*

Industrials (11.58%)

EMR Emerson Electric $61.30

GE General Electric 24.11

LMT Lockheed Martin 300.20

Information Technology (18.41%)

CSCO Cisco Systems, Inc. 32.18

INTC Intel Corporation 36.33

IBM International Business Machines Corporation 145.99

PAYX Paychex, Inc. 58.04

Materials (3.35%)

PX Praxair, Inc. 134.15

Telecommunication Services (5.04%)

VZ Verizon Communications, Inc. 47.25

*As of 9/13/2017 and may vary thereafter.

The Dividend Income Value Strategy Portfolio

Industry Breakdown*

% of Portfolio

Consumer Staples 36.64%

Information Technology 18.41%

Industrials 11.58%

Energy 10.01%

Consumer Discretionary 9.96%

Telecommunication Services 5.04%

Health Care 5.01%

Materials 3.35%

Source: Global Industry Classification Standard (GICS)

Source: Morningstar

*As of 9/13/2017 and may vary thereafter. Breakdowns are based on the sources shown

and may differ from any category definitions used in selecting the trust portfolio.

% of Portfolio

Large-Cap Blend 33.24%

Large-Cap Value 50.09%

Mid-Cap Blend 13.34%

Mid-Cap Value 3.33%

Holdings Style Summary*

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Intelligent Investments. Independent Ideas.

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These are hypothetical portfolio returns of the Dividend Income Value Strategy (“strategy”) but not the trust or any prior series. AAM created its first trust using this strategy on December 16, 2009. The strategy was created with the benefit of hindsight. Past performance is not indicative of future results and actual performance of the portfolio may be lower or higher than the future performance of the strategy. Some of these returns are the result of extraordinary market events and are not expected to be repeated. Strategy performance is based on a calendar year strategy and, while trusts may be created at various times during the year, they generally have 15-month terms. Consult your tax advisor for possible tax consequences associated with this investment. Units may be well suited for an IRA or other qualified plan. Please see the prospectus for more information. Hypothetical strategy returns reflect a maximum sales charge of 1.85%, plus additional trust fees and expenses, but do not include brokerage commission or taxes. Returns assume that all dividends received during a year are reinvested semi-annually. In addition, the strategy’s hypothetical performance will vary from that of investing in the Dividend Income Value Strategy stocks because it may not be weighted the same as the strategy stocks and may not be fully invested at all times. Investors should also be aware that the strategy may lose money or underperform the index in any given year. The DJIASM consists of 30 U.S. stocks chosen by the editors of the Wall Street Journal as being representative of American Industry. This index can not be purchased directly by investors. Returns are not adjusted for trust sales fees and expenses, as they are not available to invest in directly. Average Annual Total Return reflects annualized change. Standard deviation is a measure of price variability (risk). A higher degree of variability indicates more volatility and therefore greater risk. The Dow Jones Industrial AverageSM is a product of Dow Jones Indexes, a licensed trademark of CME Group Index Services LLC (“CME”), and has been licensed for use by the trust. Dow Jones®, Dow Jones Industrial AverageSM, DJIASM and Dow Jones Indexes are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”) and have been licensed for use for certain purposes by the trust. Dow Jones, CME and their respective affiliates have no relationship to the trust, other than the licensing of the Dow Jones Industrial Average and their respective service marks for use in connection with the trust.

2Through 12/31/2016

Annual Total Returns

Year Dividend Income Value Strategy DJIASM S&P 500

1973 -14.33% -16.58% -14.69%

1974 -6.32% -23.58% -26.47%

1975 44.30% 44.75% 37.23%

1976 28.64% 22.82% 23.93%

1977 -7.14% -12.84% -7.16%

1978 -0.54% 2.79% 6.57%

1979 15.42% 4.19% 18.61%

1980 18.32% 22.17% 32.50%

1981 3.85% -3.57% -4.92%

1982 21.60% 27.11% 21.55%

1983 27.43% 25.97% 22.56%

1984 6.07% 1.31% 6.27%

1985 25.16% 33.55% 31.72%

1986 27.48% 27.10% 18.67%

1987 1.12% 5.48% 5.25%

1988 28.81% 16.14% 16.56%

1989 27.14% 32.19% 31.62%

1990 -7.03% -0.56% -3.19%

1991 26.08% 24.19% 30.33%

1992 6.17% 7.41% 7.61%

1993 10.86% 16.95% 10.04%

1994 3.93% 5.02% 1.30%

1995 32.30% 36.92% 37.50%

1996 16.21% 28.91% 22.89%

1997 23.34% 24.94% 33.31%

1998 8.94% 18.13% 28.55%

1999 -8.12% 27.20% 21.03%

2000 5.27% -4.71% -9.10%

2001 -2.18% -5.50% -11.88%

2002 -13.85% -14.97% -22.09%

2003 18.05% 28.25% 28.65%

2004 2.41% 5.31% 10.87%

2005 -8.26% 1.72% 4.90%

2006 15.93% 19.04% 15.76%

2007 -4.12% 8.88% 5.56%

2008 -33.60% -31.93% -36.99%

2009 25.33% 22.68% 26.45%

2010 14.35% 14.06% 15.08%

2011 9.56% 8.38% 2.08%

2012 9.25% 10.24% 15.98%

2013 32.55% 29.63% 32.36%

2014 11.29% 10.02% 13.65%

2015 1.88% 0.23% 1.38%

2016 15.71% 16.46% 11.93%

20171 3.32% 12.99% 11.92%

1Through 8/31/2017

Standard Deviation2

Dividend Income Value Strategy

DJIASM S&P 500 Index

Since 1973

15.60% 16.80% 17.61%

25 Yrs 14.66% 15.48% 17.67%

20 Yrs 15.24% 15.60% 18.49%

15 Yrs 16.55% 15.94% 18.15%

10 Yrs 18.05% 16.50% 18.15%

5 Yrs 11.44% 10.81% 11.17%

3 Yrs 7.07% 8.17% 6.64%

Average Annual Total Returns2

Dividend Income Value Strategy

DJIASM S&P 500 Index

Since 1973

9.30% 10.39% 10.16%

25 Yrs 6.67% 10.18% 9.13%

20 Yrs 5.04% 8.21% 7.67%

15 Yrs 5.08% 7.28% 6.68%

10 Yrs 6.62% 7.51% 6.94%

5 Yrs 13.69% 12.91% 14.64%

3 Yrs 9.47% 8.70% 8.85%

The Dividend Income Value Strategy Portfolio Series 2017-3Q, ADT 1815

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Unit Investment Trusts (UITs) are sold only by prospectus. You should consider the trust’s investment objectives, risks, charges and expenses carefully before investing. Contact your financial professional or visit Advisors Asset Management online at www.aamlive.com/uit to obtain a prospectus, which contains this and other information about the trust. Read it carefully before you invest. Risks and Considerations: Unit values will fluctuate with the portfolio of underlying securities and may be worth more or less than the original purchase price at the time of redemption. There is no guarantee that the objective of the portfolio will be achieved. Additionally, the trust may terminate earlier than the specific termination date as stated in the prospectus. Consult your tax advisor for possible tax consequences associated with this investment. An investment in this unmanaged unit investment trust should be made with an understanding of the risks associated therewith which includes, but is not limited to: Common Stock: An investment in common stocks should be made with an understanding of the various risks of owning common stock, such as an economic recession and the possible deterioration of either the financial condition of the issuers of the equity securities or the general condition of the stock market. Consumer Products and Services Companies: These companies manufacture or sell various consumer products and/or services. General risks of these companies include the general state of the economy, intense competition and consumer spending trends. Negative developments in this sector will affect the value of your investment more than would be the case in a more diversified investment. Dividend Payment Risk: An issuer of a security may be unwilling or unable to pay income on a security. Common stocks do not assure dividend payments and are paid only when declared by an issuer’s board of directors. The amount of any dividend may vary over time. Long-Term Strategy: Although this unit investment trust terminates in approximately 15 months, the strategy is long term. Investors should consider their ability to pursue investing in successive portfolios, if available. The Morningstar Equity Style Box™: This table provides a graphical representation of the investment style of a trust based on holdings as of the date of deposit which may vary thereafter. The Morningstar Equity Style Box™ placement is based on the Morningstar market capitalization classification (determined relative to other stocks in the same geographic area) of the stocks in the trust’s portfolio (vertical axis), and by comparing the growth and value characteristics of the stocks in the trust’s portfolio with growth and value factors developed by Morningstar (horizontal axis). Value, blend and growth are types of investment styles. Growth investing generally seeks stocks that offer the potential for greater-than-average earnings growth, and may entail greater risk than value or blend investing. Value investing generally seeks stocks that may be sound investments but are temporarily out of favor in the marketplace, and may entail less risk than growth investing. A blended investment combines the two styles. ©2017 Morningstar, Inc. All Rights Reserved. The information contained herein relating to the Morningstar Equity Style Box™: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, and is not provided in a fiduciary capacity within the meaning of the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisers.

Securities are available through your financial professional. Not FDIC Insured. Not Bank Guaranteed. May Lose Value. For informational purposes only and not a recommendation to purchase or sell any security.

©2017 Advisors Asset Management Advisors Asset Management, Inc. (AAM) is a SEC registered investment advisor and member FINRA/SIPC.

18925 Base Camp Road | Monument, CO 80132 | www.aamlive.com | CRN: 2016-0929-5562 R Link 4268

Intelligent Investments. Independent Ideas.

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The Dividend Income Value Strategy Portfolio Series 2017-3Q, ADT 1815