DAILY DATA
as of 7/29/2010
| Portfolio Status |
Secondary
|
| Offer Price1 |
$0.000000
|
| Bid Price2 |
$10.723300
|
| Liquidation Price3 |
$10.723300
|
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 Technology Portfolio, Series 5 ("Trust") seeks to maximize total return through capital appreciation.
PRINCIPAL INVESTMENT STRATEGY
The Trust consists of 41 stocks classified as being in the information technology sector by the Global Industry Classification Standard(“GICS”). The Trust is diversified across the information technology sector and includes stocks of companies from the following industries: communications equipment, computers and peripherals, electronic equipment and instruments, internet software and services, IT services, office electronics, semiconductors and semiconductor equipment and software. The Sponsor selects stocks for the Trust within the sector that it believes have the potential to achieve the Trust’s investment objective.
See “Investment Policies” in Part B of the prospectus for more information.
SELECTION CRITERIA
The Sponsor selects domestic companies that it believes are core holdings of a well-diversified domestic technology portfolio. To select the portfolio the Sponsor follows a very disciplined process which includes both quantitative and qualitative analysis. The Sponsor begins with the approximately 500 companies that are in the Russell 3000 Index and are classified as being in the information technology sector. The Sponsor then reduces the 500 companies to approximately 150 by performing quantitative screening, which may be primarily based on, but not limited to, the following factors:
- Valuation The Sponsor may screen for reasonably valued companies based on measures such as price-to-earnings, price-to-book, and price-to-cash flow.
- Growth The Sponsor may screen for companies with a history of better than average growth of revenues, earnings and dividends (if applicable).
- Profitability The Sponsor may screen for companies with a history of consistent and high profitability as measured by return-on-assets, return-on-equity, gross margin and net margin.
The Sponsor then reduces the 150 companies to 41 by performing qualitative analysis, which may be primarily based on, but not limited to, the following factors:
- Balance Sheet The Sponsor favors companies that possess overall financial strength and exhibit balance sheet improvements relative to their peers and the marketplace.
- Industry Leadership The Sponsor favors companies that possess a strong competitive position among their domestic and global peers.
- Valuation The Sponsor favors companies whose valuations appear to be attractive based on measures such as price-to-earnings, price-to-book, and price-to-cash flow.
- Growth The Sponsor favors companies with a history of (and prospects for) better than average growth of revenues, earnings and dividends (if applicable).
- Profitability. The Sponsor favors companies with a history of (and prospects for) consistent and high profitability as measured by return-on-assets, return-on-equity, gross margin and net margin.
RISKS AND OTHER CONSIDERATIONS
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. In the last year, economic activity has declined across all sectors of the economy, and the United States is experiencing increased unemployment. The current economic crisis has affected the global economy with European and Asian markets also suffering historic losses. Extraordinary steps have been taken by the governments of several leading economic countries to combat the economic crisis; however, the impact of these measures is not yet known and cannot be predicted.
- The Trust includes securities issued by companies in the information technology sector. The Trust is diversified across the information technology sector and includes stocks of companies from the following industries: communications equipment, computers and peripherals, electronic equipment and instruments, internet software and services, IT services, office electronics, semiconductors and semiconductor equipment and software. Adverse developments in the sector may affect the value of your investment. Companies involved in this sector must contend with rapid changes in technology, intense competition, government regulation and the rapid obsolescence of products and services. Furthermore, sector predictions may not materialize and the companies selected for the Trust may not represent the entire sector and may not participate in the overall sector growth.
- The Trust invests in a U.S.-listed foreign security. The Trust’s investment in a U.S.-listed foreign security presents additional risk. 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 may invest in companies that are considered to be passive foreign investment companies (“PFICs”). In general, PFICs are certain non-U.S. corporations that receive at least 75% of their annual gross income from passive sources (such as interest, dividends, certain rents and royalties or capital gains) or that hold at least 50% of their assets in investments producing such passive income. As a result of an investment in PFICs, the Trust could be subject to U.S. federal income tax and additional interest charges on gains and certain distributions with respect to those equity interests, even if all the income or gain is distributed to its unitholders in a timely manner. The Trust will not be able to pass through to its unitholders any credit or deduction for such taxes.
- 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.
- 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.
- 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.