DAILY DATA
Pricing as of 9/8/2010
| Portfolio Status |
Secondary
|
| Offer Price1 |
$0.000000
|
| Bid Price2 |
$11.020200
|
| Liquidation Price3 |
$10.875200
|
1 The "offer" price represents the net asset value of one unit of a trust plus a transactional sales charge.
2 The "bid" price represents the net asset value of one unit of a trust excluding deferred sales charge.
3 The "liquidation" price represents the net asset value of one unit of a trust and includes any front-end and deferred sales charges 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.
Investment Objective
The Guggenheim ABC High Dividend Strategy Portfolio, Series 2 ("Trust") seeks to provide high levels of dividend income.
PRINCIPAL INVESTMENT STRATEGY
The Trust seeks to provide an inflation-hedged approach to investing in international markets, while seeking high levels of dividend income. The Trust’s strategy aims to invest in companies from the commodity-rich nations of Australia, Brazil and Canada that have the potential to benefit from the growth potential of emerging markets worldwide. Because of the natural resources possessed by Australia, Brazil and Canada, companies in these countries may be able to benefit from a rise in global per capita demand for commodities. The strategy seeks to select high yielding mature companies from commodity-rich Australia, Brazil and Canada. However, there can be no assurance that securities contained in the Trust will benefit from the growth potential of emerging market countries or that the Trust will achieve its investment objective.
The Sponsor, with the assistance of Guggenheim Partners Asset Management, Inc. (“GPAM”), an affiliate of Guggenheim Partners, LLC (“Guggenheim”), has selected the securities to be included in the Trust’s portfolio. The Sponsor and GPAM believe that companies that distribute significant dividends on a consistent basis generally demonstrate strong financial strength and positive performance relative to their peers.
SELECTION CRITERIA
The Trust’s portfolio is constructed and the securities are selected approximately five business days prior to the initial date of deposit (the “Inception Date”) using the Security Selection Rules outlined below.
Security Selection Rules:
In constructing the Trust’s portfolio, 30 securities will be selected based on the following fundamentally based quantitative criteria:
- Start with an initial universe of securities that include all Australia, Brazil or Canada domiciled companies listed on a major U.S. (the New York Stock Exchange and the NASDAQ Stock Market), Australian (the Australian Securities Exchange) or Canadian (Toronto Stock Exchange) exchange.
- Reduce the initial universe of securities to a sub-universe that includes all securities that meet the following requirements:
- Security must be a common share or depositary receipt.
- Security may not be a real estate investment trust, investment fund, exchange-traded fund, trust or limited partnership.
- Minimum one year of trading history for the parent company.
- Market capitalization greater than $200 million.
- Minimum 20-day average daily dollar trading volume greater than $1 million (U.S.-traded American Depositary Receipts (“ADRs”) do not have to meet this liquidity minimum as long as the underlying foreign local shares meet this liquidity minimum).
- Preference given to a U.S.-traded ADR security, if available, over foreign-traded local shares. In the event a parent company has multiple securities traded on different non-U.S. exchanges, preference given to the most liquid security. Liquidity is measured by the most traded shares of the security class.
- Exclude securities that have pending cash-only merger and acquisition or other corporate action events which will lead to delisting of the security from the qualifying exchanges listed above.
- Dividend Yield Rule: Select from the sub-universe the ten securities from each of the three countries (Australia, Brazil and Canada) that have the highest current dividend yield. The dividend yield is determined on the same day the securities are selected.
- Substitution Rule: In the event that one country runs out of available qualifying securities, select a substitute security or securities from the sub-universe of companies domiciled in the other two countries. The first substitute security selected should be the next highest yielding unselected name from the remaining countries with the stipulation that each of the other countries with available qualifying securities need to have been chosen once before the first substitute security’s country is chosen from again.
Guggenheim Partners Asset Management, Inc.
Guggenheim Partners Asset Management, Inc., is a wholly-owned subsidiary of Guggenheim Partners, LLC and an affiliate of the Sponsor, which offers financial services expertise within its asset management, investment advisory, capital markets, institutional finance and merchant banking business lines. Clients consist of an elite mix of individuals, family offices, endowments, foundations, insurance companies, pension plans and other institutions that together have entrusted the firm with supervision of more than $100 billion in assets. A global diversified financial services firm, Guggenheim Partners, LLC office locations include New York, Chicago, Los Angeles, Miami, Boston, Philadelphia, St. Louis, Houston, London, Dublin, Geneva, Hong Kong, Singapore, Mumbai and Dubai.
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 most countries experienced increased unemployment. The economic crisis affected the global economy with European and Asian markets also suffering historic losses. Although the latest economic data suggests slightly increased activity in the global economy, unemployment remains high. 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 predicted.
- Share prices or dividend rates on the securities in the Trust may decline during the life of the Trust. There is no guarantee that the issuers of the securities will declare dividends in the future and, if declared, whether they will remain at current levels or increase over time.
- The Trust includes securities issued by companies involved with the production of certain commodities. Commodity companies include those companies involved in the production of building materials, aluminum, nonferrous metals, precious metals and steel and other commodities, as well as companies that explore for, produce, refine, distribute or sell petroleum, gas products and other commodities. General risks of commodity companies include price and supply fluctuations, excess capacity, economic recession, government regulations and overall capital spending rates. Exposure to commodities markets may subject the Trust to greater volatility than other investments. Certain commodities may be produced in a limited number of countries and may be controlled by a small number of producers.
- The Trust includes securities of companies in the consumer products sector. General risks of companies in the consumer products sector include cyclicality of revenues and earnings, economic recession, currency fluctuations, changing consumer tastes, extensive competition, product liability litigation and increased government regulation. A weak economy and its effect on consumer spending would adversely affect companies in the consumer products sector.
- The Trust invests in foreign securities and ADRs. The Trust’s investment in foreign securities and ADRs presents additional risk. ADRs are issued by a bank or trust company to evidence ownership of underlying securities issued by foreign corporations. Securities of foreign issuers present risks beyond those of domestic securities. More specifically, foreign risk is the risk that foreign securities will be more volatile than U.S. securities due to such factors as adverse economic, currency, political, social or regulatory developments in a country, including government seizure of assets, excessive taxation, limitations on the use or transfer of assets, the lack of liquidity or regulatory controls with respect to certain industries or differing legal and/or accounting standards.
- The Trust includes securities issued by companies headquartered or incorporated in Australia, Brazil and Canada. As a result, political, economic or social developments in these countries may have a significant impact on the securities included in the Trust. See “Investment Risks” for additional information concerning the risks associated with an investment in securities issued by companies located in these countries.
- The Trust includes securities issued by companies headquartered or incorporated in countries considered to be emerging markets. The performance of the securities included in the Trust may be dependant, in part, on the growth or decline of emerging market countries. Emerging markets are generally defined as countries with low per capita income in the initial stages of their industrialization cycles. Risks of investing in developing or emerging countries include the possibility of investment and trading limitations, liquidity concerns, delays and disruptions in settlement transactions, political uncertainties and dependence on international trade and development assistance. Companies headquartered in emerging market countries may be exposed to greater volatility and market risk. In addition, the economies of emerging market countries may be extremely volatile and subject to increased risks.
- The Trust includes securities whose value may be dependent on currency exchange rates. The U.S. dollar value of these securities may vary with fluctuations in foreign exchange rates. Most foreign currencies have fluctuated widely in value against the U.S. dollar for various economic and political reasons such as the activity level of large international commercial banks, various central banks, speculators, hedge funds and other buyers and sellers of foreign currencies.
- The Trust invests in securities issued by small-capitalization and mid-capitalization companies. These securities customarily involve more investment risk than securities of larger capitalization companies. Small-capitalization and mid-capitalization companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments.
- Inflation may lead to a decrease in the value of assets or income from investments.
- The Sponsor does not actively manage the portfolio. The Trust will generally hold, and may continue to buy, the same securities even though a security’s outlook, market value or yield may have changed.
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. There is no guarantee that the portfolio will achieve its investment objective. Units, when redeemed, may be worth more or less than their original purchase 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. There are tax consequences associated with an investment from one series to the next. Investors should consult their tax advisor to determine tax consequences associated with an investment from one portfolio to the next. Units of certain portfolios may be well suited for purchase by Individual Retirement Accounts or other qualified retirement plans. Consult an attorney or tax advisor regarding tax consequences associated with the purchase or sale of units. Claymore Securities, Inc. does not offer tax advice.