Pricing as of 5/17/2013
1 The "offer" price represents the net asset value of one unit of a trust plus a transactional sales charge, if applicable.
2 The "bid" price represents the net asset value of one unit of a trust excluding deferred sales charge, if applicable.
3 The "liquidation" price represents the net asset value of one unit of a trust and includes any front-end and deferred sales charges, if applicable, accounted for if investors liquidate units.
4 The Historical Annual Dividend Distribution is as of date of deposit. The amount of distributions of the Trust may be lower or greater than the above-stated amount due to certain factors that may include, but are not limited to, a change in the dividends paid by issuers, a change in Trust expenses or the sale or maturity of securities in the portfolio. Fees and expenses of the Trust may vary as a result of a variety of factors including the Trust's size, redemption activity, brokerage and other transaction costs and extraordinary expenses.
The National Municipal Portfolio of CEFs, Series 20 ("Trust") seeks to provide high current income and the potential for capital appreciation.
PRINCIPAL INVESTMENT STRATEGY
The Trust contains common shares of
closed-end investment companies (“closed-end funds”), the majority of which contain
portfolios that are concentrated in tax-free
municipal bonds, which are rated investmentgrade
by at least one nationally recognized
statistical rating organization.
See “Description of Ratings” in Part B of
the prospectus for additional information
regarding the ratings criteria. See “Investment
Policies” in Part B of the prospectus for
An investment can be made in the closed-end
funds without paying the sales fee, operating
expenses and organization costs of the Trust.
The Sponsor has selected for the portfolio
closed-end funds believed to have the best
potential to achieve the Trust’s investment
objective. The Trust seeks to provide monthly
income that is exempt from federal income taxes
by investing in closed-end funds that invest in
tax-free municipal bonds. Municipal bonds
generally offer investors the potential for stable tax-free income. However, a portion of the
income may be subject to the alternative
minimum tax as well as state and local taxes.
When selecting closed-end funds for
inclusion in this portfolio the Sponsor looks at
numerous factors. These factors include, but are
not limited to:
- Investment Objective. The Sponsor
favors funds that have a clear investment
objective in line with the Trust’s
objective and, based upon a review of
publicly available information, appear to
be maintaining it.
- Premium/Discount. The Sponsor favors
funds that are trading at a discount
relative to their peers and relative to
their long-term average.
- Consistent Dividend. The Sponsor favors
funds that have a history of paying a
consistent and competitive dividend.
- Performance. The Sponsor favors funds
that have a history of strong relative
performance (based on market price and
net asset value) when compared to their
peers and an applicable benchmark.
RISKS AND OTHER CONSIDERATIONS
This Trust is not being offered for sale. This data is for informational purposes only.
As with all investments, you may lose some
or all of your investment in the Trust. No
assurance can be given that the Trust’s investment
objective will be achieved. The Trust also might
not perform as well as you expect. This can
happen for reasons such as these:
- Securities prices can be volatile. The
value of your investment may fall over
time. Market value fluctuates in
response to various factors. These can
include stock market movements,
purchases or sales of securities by the
Trust, government policies, litigation,
and changes in interest rates, inflation, the financial condition of the
securities’ issuer or even perceptions
of the issuer. Units of the Trust are not
deposits of any bank and are not
insured or guaranteed by the Federal
Deposit Insurance Corporation or any
other government agency.
- Due to the current state of the
economy, 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. Starting in
December 2007, economic activity
declined across all sectors of the
economy, and the United States
experienced increased unemployment.
The economic crisis affected the global
economy with European and Asian
markets also suffering historic losses.
Standard & Poor’s Rating Services
recently lowered its long-term sovereign
credit rating on the United States to
“AA+” from “AAA,” which could lead
to increased interest rates and volatility.
Extraordinary steps have been taken by
the governments of several leading
countries to combat the economic crisis;
however, the impact of these measures is
not yet fully known and cannot be
- The Trust includes closed-end
funds. Closed-end funds are actively
managed investment companies that
invest in various types of securities.
Closed-end funds issue common
shares that are traded on a securities
exchange. Closed-end funds are
subject to various risks, including
management’s ability to meet the
closed-end fund’s investment
objective and to manage the closed-end fund’s portfolio during periods of market turmoil and as investors’
perceptions regarding Closed-end
funds or their underlying investments
change. Closed-end funds are not
redeemable at the option of the
shareholder and they may trade in the
market at a discount to their net asset
value. Closed-end funds may also
employ the use of leverage which
increases risk and volatility. Instability
in the auction rate preferred shares
market may affect the volatility of
closed-end funds that use such
instruments to provide leverage.
- The value of the fixed-income securities
in the Closed-End Funds will generally
fall if interest rates, in general, rise.
Typically, fixed-income securities with
longer periods before maturity are more
sensitive to interest rate changes.
- A Closed-end fund or an issuer of
securities held by a closed-end fund
may be unwilling or unable to make
principal payments and/or to declare
distributions in the future, may call a
security before its stated maturity, or
may reduce the level of distributions
declared. This may result in a reduction
in the value of your units.
- The financial condition of a closed-end fund or an issuer of securities
held by a closed-end fund may
worsen, resulting in a reduction in the
value of your units. This may occur at
any point in time, including during the
primary offering period.
- Closed-end funds held by the Trust
invest in municipal bonds. Municipal
bonds are long-term fixed rate debt
obligations that decline in value with
increases in interest rates, an issuer’s worsening financial condition, a drop
in bond ratings or when there is a
decrease in the federal income tax rate.
Typically, bonds with longer periods
before maturity are more sensitive to
interest rate changes. Municipal bonds
generally generate income exempt
from federal income taxation, but may
be subject to the alternative minimum
tax. In addition, some or all of the
income generated by a closed-end
fund may not be exempt from regular
federal or state income taxes and as a
result, the related income paid by the
Trust may also be subject to regular
federal and state income taxes. Capital
gains, if any, may be subject to tax.
- Current economic conditions may lead
to limited liquidity and greater
volatility. The markets for fixed-income
securities, such as those held by the
closed-end funds, may experience
periods of illiquidity and volatility.
General market uncertainty and
consequent repricing risk have led to
market imbalances of sellers and buyers,
which in turn have resulted in significant
valuation uncertainties in a variety of
fixed-income securities. These conditions
resulted, and in many cases continue to
result in, greater volatility, less liquidity,
widening credit spreads and a lack of
price transparency, with many debt
securities remaining illiquid and of
uncertain value. These market conditions
may make valuation of some of the
securities held by a closed-end fund
uncertain and/or result in sudden and
significant valuation increases or declines
in its holdings.
- Inflation may lead to a decrease in the
value of assets or income from
- The Sponsor does not actively manage
the portfolio. The Trust will generally
hold, and may, when creating additional
units, continue to buy, the same securities
even though a security’s outlook, market
value or yield may have changed.
- Please note that the Sponsor or an affiliate may be engaged as a service provider to certain closed-end funds held by the Trust and therefore certain fees paid by the Trust to such closed-end funds will be paid to the Sponsor or an affiliate for its services to such closed-end funds. In addition to the expenses of the units of the Trust, the Trust is subject to various expenses of closed-end funds. Please see the Trust prospectus for more complete risk information.
See “Investment Risks” in Part A of the
prospectus and “Risk Factors” in Part B of the
prospectus for additional information.
Please see the Trust prospectus for more complete risk information.
Unit Investment Trusts ("UITs") are fixed and not actively managed. An investment in this fixed portfolio should be made with an understanding of the risks involved with owning various types of investments. Industry predictions may not materialize and securities selected for the Trust may not participate in overall industry growth, if any. Units, when redeemed, may be worth more or less than their original price.
This UIT is part of a long-term strategy, and investors should consider their ability to invest in successive portfolios, if available, at the applicable sales charge. Investors should consult an attorney or tax advisor regarding tax consequences associated with an investment from one series to the next, if available, and with the purchase or sale of units. Guggenheim Funds Distributors, LLC does not offer tax advice.