Registration No. 333-240876
1940 Act No. 811-05903
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Amendment No. 1 to Form S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933 OF SECURITIES OF UNIT INVESTMENT TRUSTS REGISTERED ON FORM N-8B-2
A. Exact name of trust:
FT 8950
B. Name of depositor:
FIRST TRUST PORTFOLIOS L.P.
C. Complete address of depositor's principal executive offices:
120 East Liberty Drive
Suite 400
Wheaton, Illinois 60187
D. Name and complete address of agents for service:
| Copy to: | |
| JAMES A. BOWEN | ERIC F. FESS |
| c/o First Trust Portfolios L.P. | c/o Chapman and Cutler LLP |
| 120 East Liberty Drive | 111 West Monroe Street |
| Suite 400 | Chicago, Illinois 60603 |
| Wheaton, Illinois 60187 |
E. Title and Amount of Securities Being Registered:
An indefinite number of Units pursuant to Rule 24f-2 promulgated under the Investment Company Act of 1940, as amended.
F. Approximate date of proposed sale to public:
As soon as practicable after the effective date of the Registration Statement.
| |X| | Check box if it is proposed that this filing will become effective on October 9, 2020 at 2:00 p.m. pursuant to Rule 487. |
________________________________
Dow(R) Target 5 4Q '20 - Term 1/7/22
Dow(R) Target Dvd. 4Q '20 - Term 1/7/22
S&P Dvd. Aristocrats Target 25 4Q '20 - Term 1/7/22
S&P Target 24 4Q '20 - Term 1/7/22
S&P Target SMid 60 4Q '20 - Term 1/7/22
Target Divsd. Dvd. 4Q '20 - Term 1/7/22
Target Dbl. Play 4Q '20 - Term 1/7/22
Target Focus 4 4Q '20 - Term 1/7/22
Target Global Dvd. Leaders 4Q '20 - Term 1/7/22
Target Growth 4Q '20 - Term 1/7/22
Target Triad 4Q '20 - Term 1/7/22
Target VIP 4Q '20 - Term 1/7/22
Value Line(R) Target 25 4Q '20 - Term 1/7/22
FT 8950
FT 8950 is a series of a unit investment trust, the FT Series. FT 8950
consists of 13 separate portfolios listed above (each, a "Trust," and
collectively, the "Trusts"). Each Trust invests in a portfolio of common
stocks ("Securities") selected by applying a specialized strategy. Each
Trust seeks above-average total return.
THE SECURITIES AND EXCHANGE COMMISSION ("SEC") HAS NOT APPROVED OR
DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
FIRST TRUST(R)
800-621-1675
The date of this prospectus is October 9, 2020
Page 1
Table of Contents
Summary of Essential Information 3
Fee Table 9
Report of Independent Registered Public Accounting Firm 13
Statements of Net Assets 14
Schedules of Investments 20
The FT Series 46
Portfolios 47
Risk Factors 54
Backtested Hypothetical Performance Information 59
Public Offering 65
Distribution of Units 67
The Sponsor's Profits 68
The Secondary Market 69
How We Purchase Units 69
Expenses and Charges 69
Tax Status 70
Retirement Plans 75
Rights of Unit Holders 75
Income and Capital Distributions 75
Redeeming Your Units 77
Investing in a New Trust 78
Removing Securities from a Trust 78
Amending or Terminating the Indenture 79
Information on the Sponsor, Trustee and Evaluator 80
Other Information 81
Page 2
Summary of Essential Information (Unaudited)
FT 8950
At the Opening of Business on the
Initial Date of Deposit-October 9, 2020
Sponsor: First Trust Portfolios L.P.
Trustee: The Bank of New York Mellon
Evaluator: First Trust Advisors L.P.
The Dow(R) The Dow(R)
Target 5 Target Dividend
Portfolio, 4th Portfolio, 4th
Quarter 2020 Series Quarter 2020 Series
___________________ ___________________
Initial Number of Units (1) 17,108 17,873
Fractional Undivided Interest in the Trust per Unit (1) 1/17,108 1/17,873
Public Offering Price:
Public Offering Price per Unit (2) $ 10.000 $ 10.000
Less Initial Sales Charge per Unit (3) (.000) (.000)
___________ ___________
Aggregate Offering Price Evaluation of Securities per Unit (4) 10.000 10.000
Less Deferred Sales Charge per Unit (3) (.135) (.135)
___________ ___________
Redemption Price per Unit (5) 9.865 9.865
Less Creation and Development Fee per Unit (3)(5) (.050) (.050)
Less Organization Costs per Unit (5) (.040) (.033)
___________ ___________
Net Asset Value per Unit $ 9.775 $ 9.782
=========== ===========
Tax Status (6) Grantor Trust Grantor Trust
Distribution Frequency (7) Monthly Monthly
Initial Distribution Date (7) November 25, 2020 November 25, 2020
Cash CUSIP Number 30315M 181 30315M 223
Reinvestment CUSIP Number 30315M 199 30315M 231
Fee Account Cash CUSIP Number 30315M 207 30315M 249
Fee Account Reinvestment CUSIP Number 30315M 215 30315M 256
Pricing Line Product Code 132369 132373
Ticker Symbol FEWZXX FHMPSX
First Settlement Date October 14, 2020
Mandatory Termination Date (8) January 7, 2022
____________
See "Notes to Summary of Essential Information" on page 8.
Page 3
Summary of Essential Information (Unaudited)
FT 8950
At the Opening of Business on the
Initial Date of Deposit-October 9, 2020
Sponsor: First Trust Portfolios L.P.
Trustee: The Bank of New York Mellon
Evaluator: First Trust Advisors L.P.
S&P Dividend
Aristocrats S&P S&P
Target 25 Target 24 Target SMid 60
Portfolio, 4th Portfolio, 4th Portfolio, 4th
Quarter 2020 Series Quarter 2020 Series Quarter 2020 Series
___________________ ___________________ ___________________
Initial Number of Units (1) 17,974 24,001 16,880
Fractional Undivided Interest in the Trust per Unit (1) 1/17,974 1/24,001 1/16,880
Public Offering Price:
Public Offering Price per Unit (2) $ 10.000 $ 10.000 $ 10.000
Less Initial Sales Charge per Unit (3) (.000) (.000) (.000)
___________ ___________ ___________
Aggregate Offering Price Evaluation of Securities per Unit (4) 10.000 10.000 10.000
Less Deferred Sales Charge per Unit (3) (.135) (.135) (.135)
___________ ___________ ___________
Redemption Price per Unit (5) 9.865 9.865 9.865
Less Creation and Development Fee per Unit (3)(5) (.050) (.050) (.050)
Less Organization Costs per Unit (5) (.032) (.034) (.045)
___________ ___________ ___________
Net Asset Value per Unit $ 9.783 $ 9.781 $ 9.770
=========== =========== ===========
Tax Status (6) RIC Grantor Trust RIC
Distribution Frequency (7) Monthly Monthly Semi-Annually
Initial Distribution Date (7) November 25, 2020 November 25, 2020 December 25, 2020
Cash CUSIP Number 30315M 264 30315M 306 30316B 101
Reinvestment CUSIP Number 30315M 272 30315M 314 30316B 119
Fee Account Cash CUSIP Number 30315M 280 30315M 322 30316B 127
Fee Account Reinvestment CUSIP Number 30315M 298 30315M 330 30316B 135
Pricing Line Product Code 132377 132381 132401
Ticker Symbol FFZZGX FDUAOX FGTHMX
First Settlement Date October 14, 2020
Mandatory Termination Date (8) January 7, 2022
____________
See "Notes to Summary of Essential Information" on page 8.
Page 4
Summary of Essential Information (Unaudited)
FT 8950
At the Opening of Business on the
Initial Date of Deposit-October 9, 2020
Sponsor: First Trust Portfolios L.P.
Trustee: The Bank of New York Mellon
Evaluator: First Trust Advisors L.P.
Target
Diversified Target Double Play Target Focus Four
Dividend Portfolio, 4th Portfolio, 4th
Portfolio, 4th Quarter 2020 Quarter 2020
Quarter 2020 Series Series Series
___________________ ___________________ __________________
Initial Number of Units (1) 14,957 52,060 38,828
Fractional Undivided Interest in the Trust per Unit (1) 1/14,957 1/52,060 1/38,828
Public Offering Price:
Public Offering Price per Unit (2) $ 10.000 $ 10.000 $ 10.000
Less Initial Sales Charge per Unit (3) (.000) (.000) (.000)
___________ ___________ ___________
Aggregate Offering Price Evaluation of Securities per Unit (4) 10.000 10.000 10.000
Less Deferred Sales Charge per Unit (3) (.135) (.135) (.135)
___________ ___________ ___________
Redemption Price per Unit (5) 9.865 9.865 9.865
Less Creation and Development Fee per Unit (3)(5) (.050) (.050) (.050)
Less Organization Costs per Unit (5) (.027) (.048) (.045)
___________ ___________ ___________
Net Asset Value per Unit $ 9.788 $ 9.767 $ 9.770
=========== =========== ===========
Tax Status (6) RIC RIC RIC
Distribution Frequency (7) Monthly Monthly Semi-Annually
Initial Distribution Date (7) November 25, 2020 November 25, 2020 December 25, 2020
Cash CUSIP Number 30315M 348 30315M 785 30316B 143
Reinvestment CUSIP Number 30315M 355 30315M 793 30316B 150
Fee Account Cash CUSIP Number 30315M 363 30315M 801 30316B 168
Fee Account Reinvestment CUSIP Number 30315M 371 30315M 819 30316B 176
Pricing Line Product Code 132405 132389 132413
Ticker Symbol FFQIDX FEDRRX FIFXYX
First Settlement Date October 14, 2020
Mandatory Termination Date (8) January 7, 2022
____________
See "Notes to Summary of Essential Information" on page 8.
Page 5
Summary of Essential Information (Unaudited)
FT 8950
At the Opening of Business on the
Initial Date of Deposit-October 9, 2020
Sponsor: First Trust Portfolios L.P.
Trustee: The Bank of New York Mellon
Evaluator: First Trust Advisors L.P.
Target Global Target
Dividend Leaders Growth Target Triad
Portfolio, 4th Portfolio, 4th Portfolio, 4th
Quarter 2020 Quarter 2020 Quarter 2020
Series Series Series
________________ _______________ ______________
Initial Number of Units (1) 14,131 16,111 26,985
Fractional Undivided Interest in the Trust per Unit (1) 1/14,131 1/16,111 1/26,985
Public Offering Price:
Public Offering Price per Unit (2) $ 10.000 $ 10.000 $ 10.000
Less Initial Sales Charge per Unit (3) (.000) (.000) (.000)
___________ ___________ ___________
Aggregate Offering Price Evaluation of Securities per Unit (4) 10.000 10.000 10.000
Less Deferred Sales Charge per Unit (3) (.135) (.135) (.135)
___________ ___________ ___________
Redemption Price per Unit (5) 9.865 9.865 9.865
Less Creation and Development Fee per Unit (3)(5) (.050) (.050) (.050)
Less Organization Costs per Unit (5) (.014) (.039) (.040)
___________ ___________ ___________
Net Asset Value per Unit $ 9.801 $ 9.776 $ 9.775
=========== =========== ===========
Tax Status (6) RIC RIC RIC
Distribution Frequency (7) Monthly Semi-Annually Semi-Annually
Initial Distribution Date (7) November 25, 2020 December 25, 2020 December 25, 2020
Cash CUSIP Number 30315M 389 30316B 184 30316B 226
Reinvestment CUSIP Number 30315M 397 30316B 192 30316B 234
Fee Account Cash CUSIP Number 30315M 405 30316B 200 30316B 242
Fee Account Reinvestment CUSIP Number 30315M 413 30316B 218 30316B 259
Pricing Line Product Code 132409 132417 132421
Ticker Symbol FGJQJX FHWGVX FHCYPX
First Settlement Date October 14, 2020
Mandatory Termination Date (8) January 7, 2022
____________
See "Notes to Summary of Essential Information" on page 8.
Page 6
Summary of Essential Information (Unaudited)
FT 8950
At the Opening of Business on the
Initial Date of Deposit-October 9, 2020
Sponsor: First Trust Portfolios L.P.
Trustee: The Bank of New York Mellon
Evaluator: First Trust Advisors L.P.
Value Line(R)
Target VIP Target 25
Portfolio, 4th Portfolio, 4th
Quarter 2020 Quarter 2020
Series Series
______________ ______________
Initial Number of Units (1) 117,924 15,737
Fractional Undivided Interest in the Trust per Unit (1) 1/117,924 1/15,737
Public Offering Price:
Public Offering Price per Unit (2) $ 10.000 $ 10.000
Less Initial Sales Charge per Unit (3) (.000) (.000)
___________ ___________
Aggregate Offering Price Evaluation of Securities per Unit (4) 10.000 10.000
Less Deferred Sales Charge per Unit (3) (.135) (.135)
___________ ___________
Redemption Price per Unit (5) 9.865 9.865
Less Creation and Development Fee per Unit (3)(5) (.050) (.050)
Less Organization Costs per Unit (5) (.030) (.045)
___________ ___________
Net Asset Value per Unit $ 9.785 $ 9.770
=========== ===========
Tax Status (6) RIC Grantor Trust
Distribution Frequency (7) Semi-Annually Monthly
Initial Distribution Date (7) December 25, 2020 November 25, 2020
Cash CUSIP Number 30316B 267 30315M 421
Reinvestment CUSIP Number 30316B 275 30315M 439
Fee Account Cash CUSIP Number 30316B 283 30315M 447
Fee Account Reinvestment CUSIP Number 30316B 291 30315M 454
Pricing Line Product Code 132425 132385
Ticker Symbol FDKJLX FFGRAX
First Settlement Date October 14, 2020
Mandatory Termination Date (8) January 7, 2022
____________
See "Notes to Summary of Essential Information" on page 8.
Page 7
NOTES TO SUMMARY OF ESSENTIAL INFORMATION
(1) As of the Evaluation Time on October 12, 2020, we may adjust the number of
Units of a Trust so that the Public Offering Price per Unit will equal
approximately $10.00. If we make such an adjustment, the fractional undivided
interest per Unit will vary from the amounts indicated above.
(2) The Public Offering Price shown above reflects the value of the Securities
on the business day prior to the Initial Date of Deposit. No investor will
purchase Units at this price. The price you pay for your Units will be based
on their valuation at the Evaluation Time on the date you purchase your Units.
On the Initial Date of Deposit, the Public Offering Price per Unit will not
include any accumulated dividends on the Securities. After this date, a pro
rata share of any accumulated dividends on the Securities will be included.
(3) You will pay a maximum sales charge of 1.85% of the Public Offering Price
per Unit (equivalent to 1.85% of the net amount invested) which consists of an
initial sales charge, a deferred sales charge and a creation and development
fee. The sales charges are described in the "Fee Table."
(4) Each listed Security is valued at its last closing sale price on the
relevant stock exchange at the Evaluation Time on the business day prior to
the Initial Date of Deposit. If a Security is not listed, or if no closing
sale price exists, it is generally valued at its closing ask price on such
date. See "Public Offering-The Value of the Securities." The value of foreign
Securities trading in non-U.S. currencies is determined by converting the
value of such Securities to their U.S. dollar equivalent based on the currency
exchange rate for the currency in which a Security is generally denominated at
the Evaluation Time on the business day prior to the Initial Date of Deposit.
Evaluations for purposes of determining the purchase, sale or redemption price
of Units are made as of the close of trading on the New York Stock Exchange
("NYSE") (generally 4:00 p.m. Eastern time) on each day on which it is open
(the "Evaluation Time").
(5) The creation and development fee and estimated organization costs per Unit
will be deducted from the assets of a Trust at the end of the initial offering
period. If Units are redeemed prior to the close of the initial offering
period, these fees will not be deducted from the redemption proceeds. See
"Redeeming Your Units."
(6) See "Tax Status."
(7) For Trusts that are structured as grantor trusts, the Trustee will
distribute money from the Income and Capital Accounts on the twenty-fifth day
of each month to Unit holders of record on the tenth day of such month.
However, the Trustee will not distribute money if the aggregate amount in the
Income and Capital Accounts, exclusive of sale proceeds, equals less than 0.1%
of the net asset value of a Trust. Undistributed money in the Income and
Capital Accounts will be distributed in the next month in which the aggregate
amount available for distribution, exclusive of sale proceeds, exceeds 0.1% of
the net asset value of a Trust. Sale proceeds will be distributed if the
amount available for distribution equals at least $1.00 per 100 Units. For
Trusts that intend to qualify as regulated investment companies ("RICs") and
that make monthly distributions, the Trustee will distribute money from the
Income and Capital Accounts on the twenty-fifth day of each month to Unit
holders of record on the tenth day of each month. For Trusts that intend to
qualify as RICs and that make semi-annual distributions, the Trustee will
distribute money from the Income and Capital Accounts on the twenty-fifth day
of June and December to Unit holders of record on the tenth day of such
months. However, the Trustee will only distribute money in the Capital Account
if the amount available for distribution from that account equals at least
$1.00 per 100 Units. In any case, the Trustee will distribute any funds in the
Capital Account in December of each year and as part of the final liquidation
distribution. See "Income and Capital Distributions."
(8) See "Amending or Terminating the Indenture."
Page 8
Fee Table (Unaudited)
This Fee Table describes the fees and expenses that you may, directly or
indirectly, pay if you buy and hold Units of a Trust. See "Public
Offering" and "Expenses and Charges." Although the Trusts have a term of
approximately 15 months and are unit investment trusts rather than
mutual funds, this information allows you to compare fees.
The Dow(R) The Dow(R)
Target 5 Portfolio Target Dividend Portfolio
4th Quarter 2020 Series 4th Quarter 2020 Series
_______________________ _________________________
Amount Amount
per Unit per Unit
________ ________
Unit Holder Sales Fees (as a percentage of public offering price)
Maximum Sales Charge
Initial sales charge 0.00%(a) $.000 0.00%(a) $.000
Deferred sales charge 1.35%(b) $.135 1.35%(b) $.135
Creation and development fee 0.50%(c) $.050 0.50%(c) $.050
Maximum sales charge (including creation and development fee) 1.85% $.185 1.85% $.185
_____ _____ _____ _____
Organization Costs (as a percentage of public offering price)
Estimated organization costs .400%(d) $.0400 .330%(d) $.0330
===== ====== ===== ======
Estimated Annual Trust Operating Expenses(e)
(as a percentage of average net assets)
Portfolio supervision, bookkeeping, administrative and evaluation fees .059% $.0060 .059% $.0060
Trustee's fee and other operating expenses .113%(f) $.0114 .113%(f) $.0114
_____ ______ _____ ______
Total .172% $.0174 .172% $.0174
===== ====== ===== ======
S&P Dividend Aristocrats S&P Target 24
Target 25 Portfolio Portfolio
4th Quarter 2020 Series 4th Quarter 2020 Series
_________________________ _______________________
Amount Amount
per Unit per Unit
________ ________
Unit Holder Sales Fees (as a percentage of public offering price)
Maximum Sales Charge
Initial sales charge 0.00%(a) $.000 0.00%(a) $.000
Deferred sales charge 1.35%(b) $.135 1.35%(b) $.135
Creation and development fee 0.50%(c) $.050 0.50%(c) $.050
_____ _____ _____ _____
Maximum sales charge (including creation and development fee) 1.85% $.185 1.85% $.185
===== ===== ===== =====
Organization Costs (as a percentage of public offering price)
Estimated organization costs .320%(d) $.0320 .340%(d) $.0340
===== ====== ===== ======
Estimated Annual Trust Operating Expenses(e)
(as a percentage of average net assets)
Portfolio supervision, bookkeeping, administrative and evaluation fees .059% $.0060 .059% $.0060
Trustee's fee and other operating expenses .126%(f) $.0127 .113%(f) $.0114
_____ ______ _____ ______
Total .185% $.0187 .172% $.0174
===== ====== ===== ======
Page 9
S&P Target SMid 60 Target Diversified Target Double Play
Portfolio Dividend Portfolio Portfolio
4th Quarter 2020 Series 4th Quarter 2020 Series 4th Quarter 2020 Series
_______________________ _______________________ _______________________
Amount Amount Amount
per Unit per Unit per Unit
________ ________ ________
Unit Holder Sales Fees (as a percentage of
public offering price)
Maximum Sales Charge
Initial sales charge 0.00%(a) $.000 0.00%(a) $.000 0.00%(a) $.000
Deferred sales charge 1.35%(b) $.135 1.35%(b) $.135 1.35%(b) $.135
Creation and development fee 0.50%(c) $.050 0.50%(c) $.050 0.50%(c) $.050
_____ _____ _____ _____ _____ _____
Maximum sales charge (including creation
and development fee) 1.85% $.185 1.85% $.185 1.85% $.185
===== ===== ===== ===== ===== =====
Organization Costs (as a percentage of public
offering price)
Estimated organization costs .450%(d) $.0450 .270%(d) $.0270 .480%(d) $.0480
===== ====== ===== ====== ===== ======
Estimated Annual Trust Operating Expenses(e)
(as a percentage of average net assets)
Portfolio supervision, bookkeeping, administrative
and evaluation fees .059% $.0060 .059% $.0060 .059% $.0060
Trustee's fee and other operating expenses .126%(f) $.0127 .126%(f) $.0127 .126%(f) $.0127
_____ ______ _____ ______ _____ ______
Total .185% $.0187 .185% $.0187 .185% $.0187
===== ====== ===== ====== ===== ======
Target Focus Four Target Global Dividend Target Growth
Portfolio Leaders Portfolio Portfolio
4th Quarter 2020 Series 4th Quarter 2020 Series 4th Quarter 2020 Series
_______________________ _______________________ _______________________
Amount Amount Amount
per Unit per Unit per Unit
________ ________ ________
Unit Holder Sales Fees (as a percentage of
public offering price)
Maximum Sales Charge
Initial sales charge 0.00%(a) $.000 0.00%(a) $.000 0.00%(a) $.000
Deferred sales charge 1.35%(b) $.135 1.35%(b) $.135 1.35%(b) $.135
Creation and development fee 0.50%(c) $.050 0.50%(c) $.050 0.50%(c) $.050
_____ _____ _____ _____ _____ _____
Maximum sales charge (including creation
and development fee) 1.85% $.185 1.85% $.185 1.85% $.185
===== ===== ===== ===== ===== =====
Organization Costs (as a percentage of public
offering price)
Estimated organization costs .450%(d) $.0450 .140%(d) $.0140 .390%(d) $.0390
===== ====== ===== ====== ===== ======
Estimated Annual Trust Operating Expenses(e)
(as a percentage of average net assets)
Portfolio supervision, bookkeeping, administrative
and evaluation fees .059% $.0060 .059% $.0060 .059% $.0060
Trustee's fee and other operating expenses .126%(f) $.0127 .126%(f) $.0127 .126%(f) $.0127
_____ ______ _____ ______ _____ ______
Total .185% $.0187 .185% $.0187 .185% $.0187
===== ====== ===== ====== ===== ======
Page 10
Target Triad Target VIP Value Line(R)
Portfolio Portfolio Target 25 Portfolio
4th Quarter 2020 Series 4th Quarter 2020 Series 4th Quarter 2020 Series
_______________________ _______________________ _______________________
Amount Amount Amount
per Unit per Unit per Unit
________ ________ ________
Unit Holder Sales Fees (as a percentage of
public offering price)
Maximum Sales Charge
Initial sales charge 0.00%(a) $.000 0.00%(a) $.000 0.00%(a) $.000
Deferred sales charge 1.35%(b) $.135 1.35%(b) $.135 1.35%(b) $.135
Creation and development fee 0.50%(c) $.050 0.50%(c) $.050 0.50%(c) $.050
_____ _____ _____ _____ _____ _____
Maximum sales charge (including creation
and development fee) 1.85% $.185 1.85% $.185 1.85% $.185
===== ===== ===== ===== ===== =====
Organization Costs (as a percentage of public
offering price)
Estimated organization costs .400%(d) $.0400 .300%(d) $.0300 .450%(d) $.0450
===== ====== ===== ====== ===== ======
Estimated Annual Trust Operating Expenses(e)
(as a percentage of average net assets)
Portfolio supervision, bookkeeping, administrative
and evaluation fees .059% $.0060 .059% $.0060 .059% $.0060
Trustee's fee and other operating expenses .126%(f) $.0127 .186%(f) $.0188 .113%(f) $.0114
_____ ______ _____ ______ _____ ______
Total .185% $.0187 .245% $.0248 .172% $.0174
===== ====== ===== ====== ===== ======
Page 11
Example
This example is intended to help you compare the cost of investing in a
Trust with the cost of investing in other investment products. The
example assumes that you invest $10,000 in a Trust and the principal
amount and distributions are rolled every 15 months into a New Trust.
The example also assumes a 5% return on your investment each year and
that your Trust's, and each New Trust's, sales charges and expenses stay
the same. The example does not take into consideration transaction fees
which may be charged by certain broker/dealers for processing redemption
requests. Although your actual costs may vary, based on these
assumptions your costs, assuming you roll your proceeds from one trust
to the next for the periods shown, would be:
1 Year 3 Years 5 Years 10 Years
______ _______ _______ ________
The Dow(R) Target 5 Portfolio, 4th Quarter 2020 Series $242 $746 $1,027 $2,219
The Dow(R) Target Dividend Portfolio, 4th Quarter 2020 Series 235 725 999 2,161
S&P Dividend Aristocrats Target 25 Portfolio, 4th Quarter 2020 Series 236 726 1,002 2,167
S&P Target 24 Portfolio, 4th Quarter 2020 Series 236 728 1,003 2,170
S&P Target SMid 60 Portfolio, 4th Quarter 2020 Series 249 765 1,054 2,273
Target Diversified Dividend Portfolio, 4th Quarter 2020 Series 231 711 982 2,126
Target Double Play Portfolio, 4th Quarter 2020 Series 252 774 1,066 2,298
Target Focus Four Portfolio, 4th Quarter 2020 Series 249 765 1,054 2,273
Target Global Dividend Leaders Portfolio, 4th Quarter 2020 Series 218 672 929 2,018
Target Growth Portfolio, 4th Quarter 2020 Series 243 747 1,030 2,224
Target Triad Portfolio, 4th Quarter 2020 Series 244 750 1,034 2,232
Target VIP Portfolio, 4th Quarter 2020 Series 240 738 1,025 2,214
Value Line(R) Target 25 Portfolio, 4th Quarter 2020 Series 247 761 1,047 2,260
If you elect not to roll your proceeds from one trust to the next, your costs
will be limited by the number of years your proceeds are invested, as set
forth above.
_____________
(a) The combination of the initial and deferred sales charge comprises
what we refer to as the "transactional sales charge." The initial sales
charge is actually equal to the difference between the maximum sales
charge of 1.85% and the sum of any remaining deferred sales charge and
creation and development fee. When the Public Offering Price per Unit
equals $10, there is no initial sales charge. If the price you pay for
your Units exceeds $10 per Unit, you will pay an initial sales charge.
(b) The deferred sales charge is a fixed dollar amount equal to $.135
per Unit which, as a percentage of the Public Offering Price, will vary
over time. The deferred sales charge will be deducted in three monthly
installments commencing January 20, 2021.
(c) The creation and development fee compensates the Sponsor for
creating and developing the Trusts. The creation and development fee is
a charge of $.050 per Unit collected at the end of the initial offering
period, which is expected to be approximately three months from the
Initial Date of Deposit. If the price you pay for your Units exceeds $10
per Unit, the creation and development fee will be less than 0.50%; if
the price you pay for your Units is less than $10 per Unit, the creation
and development fee will exceed 0.50%. If you purchase Units after the
initial offering period, you will not be assessed the creation and
development fee.
(d) Estimated organization costs, which for certain Trusts include a
one-time license fee, will be deducted from the assets of each Trust at
the end of the initial offering period. Estimated organization costs are
assessed on a fixed dollar amount per Unit basis which, as a percentage
of average net assets, will vary over time.
(e) Each of the fees listed herein is assessed on a fixed dollar amount
per Unit basis which, as a percentage of average net assets, will vary
over time.
(f) Other operating expenses do not include brokerage costs and other
portfolio transaction fees for any of the Trusts. In certain
circumstances the Trusts may incur additional expenses not set forth
above. See "Expenses and Charges."
Page 12
Report of Independent
Registered Public Accounting Firm
To the Unit Holders and the Sponsor, First Trust Portfolios L.P., of FT 8950
Opinion on the Statements of Net Assets
We have audited the accompanying statements of net assets of FT 8950,
comprising Dow(R) Target 5 4Q '20 - Term 1/7/2022 (The Dow(R) Target 5
Portfolio, 4th Quarter 2020 Series); Dow(R) Target Dvd. 4Q '20 - Term 1/7/22
(The Dow(R) Target Dividend Portfolio, 4th Quarter 2020 Series); S&P Dvd.
Aristocrats Target 25 4Q '20 - Term 1/7/22 (S&P Dividend Aristocrats Target 25
Portfolio, 4th Quarter 2020 Series); S&P Target 24 4Q '20 - Term 1/7/22 (S&P
Target 24 Portfolio, 4th Quarter 2020 Series); S&P Target SMid 60 4Q '20 -
Term 1/7/22 (S&P Target SMid 60 Portfolio, 4th Quarter 2020 Series); Target
Divsd. Dvd. 4Q '20 - Term 1/7/22 (Target Diversified Dividend Portfolio, 4th
Quarter 2020 Series); Target Dbl. Play 4Q '20 - Term 1/7/22 (Target Double
Play Portfolio, 4th Quarter 2020 Series); Target Focus 4 4Q '20 - Term 1/7/22
(Target Focus Four Portfolio, 4th Quarter 2020 Series); Target Global Dvd.
Leaders 4Q '20 - Term 1/7/22 (Target Global Dividend Leaders Portfolio, 4th
Quarter 2020 Series); Target Growth 4Q '20 - Term 1/7/22 (Target Growth
Portfolio, 4th Quarter 2020 Series); Target Triad 4Q '20 - Term 1/7/22 (Target
Triad Portfolio, 4th Quarter 2020 Series); Target VIP 4Q '20 - Term 1/7/22
(Target VIP Portfolio, 4th Quarter 2020 Series); and Value Line(R) Target 25
4Q '20 - Term 1/7/22 (Value Line(R) Target 25 Portfolio, 4th Quarter 2020
Series) (collectively, the "Trusts"), one of the series constituting the FT
Series, including the schedules of investments, as of the opening of business
on October 9, 2020 (Initial Date of Deposit), and the related notes. In our
opinion, the statements of net assets present fairly, in all material
respects, the financial position of each of the Trusts constituting FT 8950 as
of the opening of business on October 9, 2020 (Initial Date of Deposit), in
conformity with accounting principles generally accepted in the United States
of America.
Basis for Opinion
These statements of net assets are the responsibility of the Trusts' Sponsor.
Our responsibility is to express an opinion on the Trusts' statements of net
assets based on our audits. We are a public accounting firm registered with
the Public Company Accounting Oversight Board (United States) (PCAOB) and are
required to be independent with respect to the Trusts in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the statements of net assets are free of material
misstatement, whether due to error or fraud. The Trusts are not required to
have, nor were we engaged to perform, an audit of their internal control over
financial reporting. As part of our audits we are required to obtain an
understanding of internal control over financial reporting but not for the
purpose of expressing an opinion on the effectiveness of the Trusts' internal
control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material
misstatement of the statements of net assets, whether due to error or fraud,
and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and
disclosures in the statements of net assets. Our audits also included
evaluating the accounting principles used and significant estimates made by
the Trusts' Sponsor, as well as evaluating the overall presentation of the
statements of net assets. Our procedures included confirmation of the
irrevocable letter of credit held by The Bank of New York Mellon, the Trustee,
and allocated among the Trusts for the purchase of securities, as shown in the
statements of net assets, as of the opening of business on October 9, 2020, by
correspondence with the Trustee. We believe that our audits provide a
reasonable basis for our opinion.
/s/ DELOITTE & TOUCHE LLP
Chicago, Illinois
October 9, 2020
We have served as the auditor of one or more investment companies sponsored by
First Trust Portfolios L.P. since 2001.
Page 13
Statements of Net Assets
FT 8950
At the Opening of Business on the
Initial Date of Deposit-October 9, 2020
The Dow(R) The Dow(R) Target
Target 5 Portfolio Dividend Portfolio
4th Quarter 4th Quarter
2020 Series 2020 Series
__________________ ___________________
NET ASSETS
Investment in Securities represented
by purchase contracts (1) (2) $171,079 $178,730
Less liability for reimbursement to Sponsors
for organization costs (3) (684) (590)
Less liability for deferred sales charge (4) (2,310) (2,413)
Less liability for creation and development fee (5) (855) (894)
________ ________
Net assets $167,230 $174,833
======== ========
Units outstanding 17,108 17,873
Net asset value per Unit (6) $ 9.775 $ 9.782
ANALYSIS OF NET ASSETS
Cost to investors (7)
$171,079 $178,730
Less maximum sales charge (7) (3,165) (3,307)
Less estimated reimbursement to Sponsor
for organization costs (3) (684) (590)
________ ________
Net assets $167,230 $174,833
======== ========
__________
See "Notes to Statements of Net Assets" on page 19.
Page 14
Statements of Net Assets
FT 8950
At the Opening of Business on the
Initial Date of Deposit-October 9, 2020
S&P Dividend S&P S&P
Aristocrats Target 25 Target 24 Target SMid 60
Portfolio Portfolio Portfolio
4th Quarter 4th Quarter 4th Quarter
2020 Series 2020 Series 2020 Series
_____________________ ___________ ______________
NET ASSETS
Investment in Securities represented
by purchase contracts (1) (2) $179,744 $240,007 $168,796
Less liability for reimbursement to Sponsor
for organization costs (3) (575) (816) (760)
Less liability for deferred sales charge (4) (2,426) (3,240) (2,279)
Less liability for creation and development fee (5) (899) (1,200) (844)
________ ________ ________
Net assets $175,844 $234,751 $164,913
======== ======== ========
Units outstanding 17,974 24,001 16,880
Net asset value per Unit (6) $ 9.783 $ 9.781 $ 9.770
ANALYSIS OF NET ASSETS
Cost to investors (7)
$179,744 $240,007 $168,796
Less maximum sales charge (7) (3,325) (4,440) (3,123)
Less estimated reimbursement to Sponsor
for organization costs (3) (575) (816) (760)
________ ________ ________
Net assets $175,844 $234,751 $164,913
======== ======== ========
__________
See "Notes to Statements of Net Assets" on page 19.
Page 15
Statements of Net Assets
FT 8950
At the Opening of Business on the
Initial Date of Deposit-October 9, 2020
Target
Target Diversified Double Play Target Focus Four
Dividend Portfolio Portfolio Portfolio
4th Quarter 4th Quarter 4th Quarter
2020 Series 2020 Series 2020 Series
__________________ ___________ _________________
NET ASSETS
Investment in Securities represented
by purchase contracts (1) (2) $149,567 $520,600 $388,278
Less liability for reimbursement to Sponsor
for organization costs (3) (404) (2,499) (1,747)
Less liability for deferred sales charge (4) (2,019) (7,028) (5,242)
Less liability for creation and development fee (5) (748) (2,603) (1,941)
________ ________ ________
Net assets $146,396 $508,470 $379,348
======== ======== ========
Units outstanding 14,957 52,060 38,828
Net asset value per Unit (6) $ 9.788 $ 9.767 $ 9.770
ANALYSIS OF NET ASSETS
Cost to investors (7)
$149,567 $520,600 $388,278
Less maximum sales charge (7) (2,767) (9,631) (7,183)
Less estimated reimbursement to Sponsor
for organization costs (3) (404) (2,499) (1,747)
________ ________ ________
Net assets $146,396 $508,470 $379,348
======== ======== ========
__________
See "Notes to Statements of Net Assets" on page 19.
Page 16
Statements of Net Assets
FT 8950
At the Opening of Business on the
Initial Date of Deposit-October 9, 2020
Target Global
Dividend Leaders Target Target Triad
Portfolio Growth Portfolio Portfolio
4th Quarter 4th Quarter 4th Quarter
2020 Series 2020 Series 2020 Series
________________ ________________ ____________
NET ASSETS
Investment in Securities represented
by purchase contracts (1) (2) $141,311 $161,108 $269,845
Less liability for reimbursement to Sponsor
for organization costs (3) (198) (628) (1,079)
Less liability for deferred sales charge (4) (1,908) (2,175) (3,643)
Less liability for creation and development fee (5) (707) (806) (1,349)
________ ________ ________
Net assets $138,498 $157,499 $263,774
======== ======== ========
Units outstanding 14,131 16,111 26,985
Net asset value per Unit (6) $ 9.801 $ 9.776 9.775
ANALYSIS OF NET ASSETS
Cost to investors (7)
$141,311 $161,108 $269,845
Less maximum sales charge (7) (2,615) (2,981) (4,992)
Less estimated reimbursement to Sponsor
for organization costs (3) (198) (628) (1,079)
________ ________ ________
Net assets $138,498 $157,499 $263,774
======== ======== ========
__________
See "Notes to Statements of Net Assets" on page 19.
Page 17
Statements of Net Assets
FT 8950
At the Opening of Business on the
Initial Date of Deposit-October 9, 2020
Value Line(R)
Target VIP Target 25
Portfolio Portfolio
4th Quarter 4th Quarter
2020 Series 2020 Series
___________ _____________
NET ASSETS
Investment in Securities represented
by purchase contracts (1) (2) $1,179,242 $157,373
Less liability for reimbursement to Sponsor
for organization costs (3) (3,538) (708)
Less liability for deferred sales charge (4) (15,920) (2,124)
Less liability for creation and development fee (5) (5,896) (787)
__________ ________
Net assets $1,153,888 $153,754
========== ========
Units outstanding 117,924 15,737
Net asset value per Unit (6) $ 9.785 $ 9.770
ANALYSIS OF NET ASSETS
Cost to investors (7) $1,179,242 $157,373
Less maximum sales charge (7) (21,816) (2,911)
Less estimated reimbursement to Sponsor
for organization costs (3) (3,538) (708)
__________ ________
Net assets $1,153,888 $153,754
========== ========
__________
See "Notes to Statements of Net Assets" on page 19.
Page 18
NOTES TO STATEMENTS OF NET ASSETS
Each Trust is registered as a unit investment trust under the Investment Company
Act of 1940. The Sponsor is responsible for the preparation of financial
statements in accordance with accounting principles generally accepted in the
United States which require the Sponsor to make estimates and assumptions that
affect amounts reported herein. Actual results could differ from those
estimates. The Trusts are structured as either regulated investment companies
("RICs") or grantor trusts ("grantors"). Those structured as RICs intend to
comply in their initial fiscal year and thereafter with provisions of the
Internal Revenue Code applicable to RICs and as such, will not be subject to
federal income taxes on otherwise taxable income (including net realized capital
gains) distributed to Unit holders. The Trusts structured as grantors intend to
comply in their initial fiscal year as a grantor under federal tax laws. In
grantors, investors are deemed for federal tax purposes, to own the underlying
assets of the Trust directly and as such, all taxability issues are taken into
account at the Unit holder level. Income passes through to Unit holders as
realized by the Trust.
(1) Each Trust invests in a diversified portfolio of common stocks. Aggregate
cost of the Securities listed under "Schedule of Investments" for each Trust is
based on their aggregate underlying value. Each Trust has a Mandatory
Termination Date of January 7, 2022.
(2) An irrevocable letter of credit for approximately $5,650,000, issued by The
Bank of New York Mellon (approximately $200,000 has been allocated to each of
The Dow(R) Target 5 Portfolio, 4th Quarter 2020 Series; The Dow(R) Target
Dividend Portfolio, 4th Quarter 2020 Series; S&P Dividend Aristocrats Target 25
Portfolio, 4th Quarter 2020 Series; S&P Target SMid 60 Portfolio, 4th Quarter
2020 Series; Target Diversified Dividend Portfolio, 4th Quarter 2020 Series;
Target Global Dividend Leaders Portfolio, 4th Quarter 2020 Series and Target
Growth Portfolio, 4th Quarter 2020 Series; approximately $300,000 has been
allocated to each of S&P Target 24 Portfolio, 4th Quarter 2020 Series and Value
Line(R) Target 25 Portfolio, 4th Quarter 2020 Series; approximately $350,000
has been allocated to Target Triad Portfolio, 4th Quarter 2020 Series;
approximately $650,000 has been allocated to Target Double Play Portfolio, 4th
Quarter 2020 Series; approximately $900,000 has been allocated to Target Focus
Four Portfolio, 4th Quarter 2020 Series; and approximately $1,750,000 has been
allocated to Target VIP Portfolio, 4th Quarter 2020 Series), has been deposited
with the Trustee as collateral, covering the monies necessary for the purchase
of the Securities according to their purchase contracts.
(3) A portion of the Public Offering Price consists of an amount sufficient to
reimburse the Sponsor for all or a portion of the costs of establishing the
Trusts. The estimated organization costs range from $.0140 to $.0480 per Unit
for the Trusts. A payment will be made at the end of the initial offering period
to an account maintained by the Trustee from which the obligation of the
investors to the Sponsor will be satisfied. To the extent that actual
organization costs of a Trust are greater than the estimated amount, only the
estimated organization costs added to the Public Offering Price will be
reimbursed to the Sponsor and deducted from the assets of such Trust.
(4) Represents the amount of mandatory deferred sales charge distributions of
$.135 per Unit, payable to the Sponsor in three equal monthly installments
beginning on January 20, 2021 and on the twentieth day of each month thereafter
(or if such date is not a business day, on the preceding business day) through
March 19, 2021. If Unit holders redeem Units before March 19, 2021 they will
have to pay the remaining amount of the deferred sales charge applicable to such
Units when they redeem them.
(5) The creation and development fee ($.050 per Unit for each Trust) is payable
by a Trust on behalf of Unit holders out of assets of a Trust at the end of a
Trust's initial offering period. If Units are redeemed prior to the close of the
initial offering period, the fee will not be deducted from the proceeds.
(6) Net asset value per Unit is calculated by dividing a Trust's net assets by
the number of Units outstanding. This figure includes organization costs and the
creation and development fee, which will only be assessed to Units outstanding
at the close of the initial offering period.
(7) The aggregate cost to investors in a Trust includes a maximum sales charge
(comprised of an initial and a deferred sales charge and the creation and
development fee) computed at the rate of 1.85% of the Public Offering Price
(equivalent to 1.85% of the net amount invested, exclusive of the deferred sales
charge and the creation and development fee), assuming no reduction of the
maximum sales charge as set forth under "Public Offering."
Page 19
Schedule of Investments
The Dow(R) Target 5 Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1) Price Shares Share the Trust (2)
________________________________ ____________ ______ _________ _____________
COMMON STOCKS (100%):
Communication Services (20%):
VZ Verizon Communications Inc. 20% 578 $ 59.19 $ 34,212
Consumer Staples (40%):
KO The Coca-Cola Company 20% 678 50.46 34,212
WBA Walgreens Boots Alliance, Inc. 20% 923 37.07 34,216
Information Technology (20%):
CSCO Cisco Systems, Inc. 20% 860 39.79 34,219
Materials (20%):
DOW Dow Inc. 20% 693 49.38 34,220
____ ________
Total Investments 100% $171,079
==== ========
______________
See "Notes to Schedules of Investments" on page 44.
Page 20
Schedule of Investments
The Dow(R) Target Dividend Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
________________________________ ____________ ______ _________ _____________
COMMON STOCKS (100%):
Communication Services (5%):
LUMN CenturyLink, Inc. 5% 882 $ 10.13 $ 8,935
Consumer Discretionary (5%):
NWL Newell Brands Inc. 5% 494 18.10 8,941
Financials (60%):
CFG Citizens Financial Group, Inc. 5% 313 28.56 8,939
FNB F.N.B. Corporation 5% 1,173 7.62 8,938
FHI Federated Hermes, Inc. (Class B) 5% 363 24.61 8,933
IVZ Invesco Ltd. + 5% 690 12.95 8,936
MET MetLife, Inc. 5% 224 39.85 8,926
NYCB New York Community Bancorp, Inc. 5% 1,027 8.70 8,935
PBCT People's United Financial, Inc. 5% 810 11.03 8,934
PFG Principal Financial Group, Inc. 5% 206 43.45 8,951
PRU Prudential Financial, Inc. 5% 131 68.27 8,943
UBSI United Bankshares, Inc. 5% 360 24.81 8,932
UNM Unum Group 5% 470 19.00 8,930
VLY Valley National Bancorp 5% 1,161 7.70 8,940
Materials (5%):
WRK WestRock Company 5% 237 37.77 8,951
Utilities (25%):
EIX Edison International 5% 159 56.10 8,920
EXC Exelon Corporation 5% 227 39.32 8,926
NJR New Jersey Resources Corporation 5% 307 29.14 8,946
PNW Pinnacle West Capital Corporation 5% 107 83.54 8,939
PEG Public Service Enterprise Group Incorporated 5% 153 58.40 8,935
____ ________
Total Investments 100% $178,730
==== ========
______________
See "Notes to Schedules of Investments" on page 44.
Page 21
Schedule of Investments
S&P Dividend Aristocrats Target 25 Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
COMMON STOCKS (100%):
Consumer Discretionary (4%):
TGT Target Corporation 4% 44 $ 161.86 $ 7,122
Consumer Staples (20%):
ADM Archer-Daniels-Midland Company 4% 147 48.85 7,181
HRL Hormel Foods Corporation 4% 146 49.10 7,169
KMB Kimberly-Clark Corporation 4% 48 150.31 7,215
PG The Procter & Gamble Company 4% 51 141.65 7,224
WMT Walmart, Inc. 4% 51 141.36 7,209
Energy (8%):
CVX Chevron Corporation 4% 96 75.22 7,221
XOM Exxon Mobil Corporation 4% 204 35.26 7,193
Financials (20%):
AFL Aflac Incorporated 4% 188 38.24 7,189
CINF Cincinnati Financial Corporation 4% 89 80.64 7,177
BEN Franklin Resources, Inc. 4% 322 22.32 7,187
PBCT People's United Financial, Inc. 4% 652 11.03 7,192
TROW T. Rowe Price Group, Inc. 4% 51 140.83 7,182
Health Care (4%):
JNJ Johnson & Johnson 4% 48 148.89 7,147
Industrials (28%):
MMM 3M Company 4% 43 167.71 7,212
AOS A.O. Smith Corporation 4% 127 56.75 7,207
CAT Caterpillar Inc. 4% 46 156.66 7,206
EMR Emerson Electric Co. 4% 104 69.28 7,205
EXPD Expeditors International of Washington, Inc. 4% 78 91.66 7,149
GD General Dynamics Corporation 4% 50 145.04 7,252
PNR Pentair Plc + 4% 147 48.83 7,178
Information Technology (4%):
ADP Automatic Data Processing, Inc. 4% 49 147.01 7,204
Materials (8%):
APD Air Products and Chemicals, Inc. 4% 24 299.66 7,192
NUE Nucor Corporation 4% 145 49.44 7,169
Utilities (4%):
ATO Atmos Energy Corporation 4% 74 96.79 7,162
____ ________
Total Investments 100% $179,744
==== ========
______________
See "Notes to Schedules of Investments" on page 44.
Page 22
Schedule of Investments
S&P Target 24 Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
COMMON STOCKS (100.00%):
Communication Services (12.13%):
GOOG Alphabet Inc. (Class C) * 6.81% 11 $ 1,485.93 $ 16,345
EA Electronic Arts Inc. * 0.26% 5 125.99 630
FB Facebook, Inc. (Class A) * 5.06% 46 263.76 12,133
Consumer Discretionary (13.13%):
DG Dollar General Corporation 3.56% 39 218.88 8,536
DPZ Domino's Pizza, Inc. 1.17% 7 401.01 2,807
LOW Lowe's Companies, Inc. 8.40% 118 170.87 20,163
Consumer Staples (8.30%):
CLX The Clorox Company 1.86% 21 212.86 4,470
KMB Kimberly-Clark Corporation 3.57% 57 150.31 8,568
MNST Monster Beverage Corporation * 2.87% 87 79.17 6,888
Financials (10.66%):
AMP Ameriprise Financial, Inc. 1.55% 22 169.31 3,725
SPGI S&P Global Inc. 6.70% 45 357.20 16,074
TROW T. Rowe Price Group, Inc. 2.41% 41 140.83 5,774
Health Care (14.38%):
IDXX IDEXX Laboratories, Inc. * 3.93% 24 393.51 9,444
MTD Mettler-Toledo International Inc. +* 2.95% 7 1,012.08 7,085
REGN Regeneron Pharmaceuticals, Inc. * 7.50% 30 599.88 17,996
Industrials (8.94%):
EXPD Expeditors International of Washington, Inc. 2.60% 68 91.66 6,233
MAS Masco Corporation 2.48% 104 57.34 5,963
ODFL Old Dominion Freight Line, Inc. 3.86% 47 197.11 9,264
Information Technology (29.38%):
AAPL Apple Inc. 24.96% 521 114.97 59,899
CTXS Citrix Systems, Inc. 2.43% 43 135.51 5,827
TER Teradyne, Inc. 1.99% 58 82.48 4,784
Utilities (3.08%):
PPL PPL Corporation 0.75% 62 29.11 1,805
WEC WEC Energy Group, Inc. 1.03% 25 99.03 2,476
XEL Xcel Energy Inc. 1.30% 43 72.51 3,118
_______ ________
Total Investments 100.00% $240,007
======= ========
______________
See "Notes to Schedules of Investments" on page 44.
Page 23
Schedule of Investments
S&P Target SMid 60 Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
COMMON STOCKS (100.00%):
Communication Services (2.22%):
TDS Telephone and Data Systems, Inc. 2.22% 198 $ 18.93 $ 3,748
Consumer Discretionary (7.77%):
DAN Dana Inc. 2.23% 250 15.03 3,758
GIII G-III Apparel Group, Ltd. * 1.11% 123 15.28 1,879
GHC Graham Holdings Company 2.21% 9 414.57 3,731
TPH TRI Pointe Group, Inc. * 2.22% 200 18.74 3,748
Consumer Staples (2.21%):
ANDE The Andersons, Inc. 1.11% 95 19.75 1,876
SENEA Seneca Foods Corporation * 1.10% 47 39.58 1,860
Energy (7.78%):
BCEI Bonanza Creek Energy, Inc. * 1.11% 91 20.65 1,879
VTOL Bristow Group Inc. * 1.11% 78 24.01 1,873
LPG Dorian LPG Ltd. +* 1.11% 214 8.76 1,875
RRC Range Resources Corporation 1.11% 232 8.09 1,877
CKH SEACOR Holdings Inc. * 1.11% 60 31.32 1,879
INT World Fuel Services Corporation 2.23% 161 23.36 3,761
Financials (50.00%):
AEL American Equity Investment Life Holding Company 1.12% 61 30.96 1,889
ABCB Ameris Bancorp 1.11% 71 26.43 1,877
ASB Associated Banc-Corp 2.22% 262 14.30 3,747
AGO Assured Guaranty Ltd. + 1.11% 66 28.49 1,880
BKU BankUnited, Inc. 1.12% 76 24.77 1,883
BHF Brighthouse Financial, Inc. * 2.22% 121 31.00 3,751
CNO CNO Financial Group, Inc. 2.22% 208 18.03 3,750
CUBI Customers Bancorp, Inc. * 1.11% 144 13.01 1,873
EWBC East West Bancorp, Inc. 2.22% 100 37.47 3,747
FNB F.N.B. Corporation 2.22% 492 7.62 3,749
FAF First American Financial Corporation 2.23% 72 52.27 3,763
FCF First Commonwealth Financial Corporation 1.11% 214 8.77 1,877
FFBC First Financial Bancorp. 1.12% 136 13.84 1,882
FULT Fulton Financial Corporation 2.22% 357 10.50 3,749
IBTX Independent Bank Group, Inc. 1.12% 39 48.34 1,885
CASH Meta Financial Group, Inc. 1.11% 83 22.51 1,868
NAVI Navient Corporation 2.22% 397 9.44 3,748
ONB Old National Bancorp 1.11% 135 13.90 1,877
RGA Reinsurance Group of America, Incorporated 2.23% 36 104.45 3,760
RNST Renasant Corporation 1.11% 69 27.17 1,875
Page 24
Schedule of Investments (cont'd.)
S&P Target SMid 60 Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
Financials (cont'd.):
SFNC Simmons First National Corporation 1.11% 107 $ 17.49 $ 1,871
STL Sterling Bancorp 2.22% 304 12.35 3,754
SF Stifel Financial Corp. 2.21% 66 56.52 3,730
SNV Synovus Financial Corp. 2.22% 151 24.77 3,740
UMBF UMB Financial Corporation 2.21% 66 56.48 3,728
VLY Valley National Bancorp 2.22% 487 7.70 3,750
VBTX Veritex Holdings, Inc. 1.11% 93 20.22 1,881
WBS Webster Financial Corporation 2.23% 125 30.07 3,759
WTFC Wintrust Financial Corporation 2.22% 77 48.73 3,752
Health Care (2.23%):
ACHC Acadia Healthcare Company, Inc. * 2.23% 117 32.12 3,758
Industrials (5.57%):
GATX GATX Corporation 2.24% 55 68.70 3,779
GBX The Greenbrier Companies, Inc. 1.12% 56 33.77 1,891
R Ryder System, Inc. 2.21% 79 47.25 3,733
Information Technology (3.33%):
MTSC MTS Systems Corporation 1.11% 83 22.62 1,877
PLAB Photronics, Inc. * 1.11% 176 10.63 1,871
TTMI TTM Technologies, Inc. * 1.11% 154 12.18 1,876
Materials (6.66%):
UFS Domtar Corporation 2.22% 133 28.21 3,752
KRA Kraton Corp. * 1.11% 75 24.94 1,871
OLN Olin Corporation 2.22% 238 15.74 3,746
RYAM Rayonier Advanced Materials Inc. * 1.11% 453 4.14 1,875
Real Estate (12.23%):
CUZ Cousins Properties Incorporated (4) 2.22% 127 29.49 3,745
KRG Kite Realty Group Trust (4) 1.12% 154 12.22 1,882
OPI Office Properties Income Trust (4) 1.11% 86 21.76 1,871
RPT RPT Realty (4) 1.11% 323 5.80 1,873
SBRA Sabra Health Care REIT, Inc. (4) 2.23% 252 14.90 3,755
SVC Service Properties Trust (4) 2.22% 435 8.62 3,750
UE Urban Edge Properties (4) 2.22% 352 10.66 3,752
_______ ________
Total Investments 100.00% $168,796
======= ========
______________
See "Notes to Schedules of Investments" on page 44.
Page 25
Schedule of Investments
Target Diversified Dividend Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
COMMON STOCKS (100.00%):
Communication Services (10.01%):
T AT&T Inc. 2.51% 131 $ 28.61 $ 3,748
SBGI Sinclair Broadcast Group, Inc. 2.50% 193 19.35 3,735
TDS Telephone and Data Systems, Inc. 2.51% 198 18.93 3,748
VIAC ViacomCBS Inc. 2.49% 126 29.61 3,731
Consumer Discretionary (9.99%):
BIG Big Lots, Inc. 2.51% 74 50.79 3,759
DDS Dillard's, Inc. (Class A) 2.49% 89 41.88 3,727
GHC Graham Holdings Company 2.49% 9 414.57 3,731
MGA Magna International Inc. (Class A) + 2.50% 71 52.73 3,744
Consumer Staples (9.98%):
ANDE The Andersons, Inc. 2.50% 189 19.75 3,733
TSN Tyson Foods, Inc. (Class A) 2.48% 63 58.99 3,716
UVV Universal Corporation 2.50% 86 43.49 3,740
WBA Walgreens Boots Alliance, Inc. 2.50% 101 37.07 3,744
Energy (9.99%):
DK Delek US Holdings, Inc. 2.50% 288 13.00 3,744
EOG EOG Resources, Inc. 2.49% 99 37.67 3,729
HFC HollyFrontier Corporation 2.50% 174 21.50 3,741
IMO Imperial Oil Limited + 2.50% 291 12.83 3,734
Financials (10.01%):
CFG Citizens Financial Group, Inc. 2.50% 131 28.56 3,741
LNC Lincoln National Corporation 2.50% 105 35.63 3,741
MET MetLife, Inc. 2.51% 94 39.85 3,746
UNM Unum Group 2.50% 197 19.00 3,743
Health Care (9.99%):
ABBV AbbVie Inc. 2.51% 43 87.34 3,756
NHC National HealthCare Corporation 2.49% 57 65.46 3,731
PFE Pfizer Inc. 2.49% 101 36.89 3,726
PAHC Phibro Animal Health Corporation (Class A) 2.50% 204 18.30 3,733
Industrials (10.02%):
AL Air Lease Corporation 2.51% 122 30.73 3,749
GBX The Greenbrier Companies, Inc. 2.51% 111 33.77 3,749
R Ryder System, Inc. 2.50% 79 47.25 3,733
TRN Trinity Industries, Inc. 2.50% 181 20.68 3,743
Page 26
Schedule of Investments (cont'd.)
Target Diversified Dividend Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
Information Technology (10.01%):
HPE Hewlett Packard Enterprise Company 2.50% 374 $ 9.99 $ 3,736
HOLI Hollysys Automation Technologies Ltd. + 2.50% 315 11.88 3,742
JNPR Juniper Networks, Inc. 2.50% 165 22.64 3,736
STX Seagate Technology Plc + 2.51% 73 51.33 3,747
Materials (9.99%):
CRS Carpenter Technology Corporation 2.50% 196 19.06 3,736
KRO Kronos Worldwide, Inc. 2.50% 271 13.79 3,737
LYB LyondellBasell Industries N.V. + 2.49% 47 79.26 3,725
STLD Steel Dynamics, Inc. 2.50% 114 32.84 3,744
Utilities (10.01%):
EXC Exelon Corporation 2.50% 95 39.32 3,735
NWE NorthWestern Corporation 2.51% 72 52.10 3,751
NRG NRG Energy, Inc. 2.51% 116 32.35 3,753
SJI South Jersey Industries, Inc. 2.49% 181 20.61 3,730
_______ ________
Total Investments 100.00% $149,567
======= ========
______________
See "Notes to Schedules of Investments" on page 44.
Page 27
Schedule of Investments
Target Double Play Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
COMMON STOCKS (100.00%):
Communication Services (3.30%):
LUMN CenturyLink, Inc. 2.50% 1,283 $ 10.13 $ 12,997
EA Electronic Arts Inc. * 0.80% 33 125.99 4,158
Consumer Discretionary (9.41%):
BBY Best Buy Co., Inc. 0.51% 23 114.92 2,643
DPZ Domino's Pizza, Inc. 0.54% 7 401.01 2,807
EBAY eBay Inc. 0.78% 78 52.08 4,062
LOW Lowe's Companies, Inc. 2.79% 85 170.87 14,524
NWL Newell Brands Inc. 2.50% 718 18.10 12,996
TGT Target Corporation 1.77% 57 161.86 9,226
TSCO Tractor Supply Company 0.52% 18 149.22 2,686
Consumer Staples (0.53%):
CLX The Clorox Company 0.53% 13 212.86 2,767
Financials (29.96%):
CFG Citizens Financial Group, Inc. 2.50% 455 28.56 12,995
FNB F.N.B. Corporation 2.50% 1,706 7.62 13,000
FHI Federated Hermes, Inc. (Class B) 2.50% 528 24.61 12,994
IVZ Invesco Ltd. + 2.50% 1,004 12.95 13,002
MET MetLife, Inc. 2.49% 326 39.85 12,991
NYCB New York Community Bancorp, Inc. 2.50% 1,494 8.70 12,998
PBCT People's United Financial, Inc. 2.49% 1,178 11.03 12,993
PFG Principal Financial Group, Inc. 2.49% 299 43.45 12,992
PRU Prudential Financial, Inc. 2.49% 190 68.27 12,971
UBSI United Bankshares, Inc. 2.50% 524 24.81 13,000
UNM Unum Group 2.50% 684 19.00 12,996
VLY Valley National Bancorp 2.50% 1,688 7.70 12,998
Health Care (2.41%):
IDXX IDEXX Laboratories, Inc. * 0.53% 7 393.51 2,755
REGN Regeneron Pharmaceuticals, Inc. * 1.38% 12 599.88 7,199
WST West Pharmaceutical Services, Inc. 0.50% 9 291.26 2,621
Industrials (1.00%):
FAST Fastenal Company 0.50% 57 46.00 2,622
ROL Rollins, Inc. 0.50% 46 57.02 2,623
Page 28
Schedule of Investments (cont'd.)
Target Double Play Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
Information Technology (37.34%):
ADBE Adobe Incorporated * 5.18% 55 $ 490.84 $ 26,996
AMD Advanced Micro Devices, Inc. * 2.23% 134 86.51 11,592
AMAT Applied Materials, Inc. 1.23% 102 62.60 6,385
CDNS Cadence Design Systems, Inc. * 0.50% 24 109.32 2,624
INTU Intuit Inc. 1.93% 30 334.99 10,050
KLAC KLA Corporation 0.52% 13 206.69 2,687
MSFT Microsoft Corporation 12.46% 308 210.58 64,859
NVDA NVIDIA Corporation 7.55% 71 553.55 39,302
NOW ServiceNow, Inc. * 2.10% 22 496.50 10,923
SNPS Synopsys, Inc. * 0.71% 17 219.03 3,723
TXN Texas Instruments Incorporated 2.93% 103 148.06 15,250
Materials (3.57%):
NEM Newmont Corporation 1.08% 91 61.72 5,616
WRK WestRock Company 2.49% 344 37.77 12,993
Utilities (12.48%):
EIX Edison International 2.50% 232 56.10 13,015
EXC Exelon Corporation 2.49% 330 39.32 12,976
NJR New Jersey Resources Corporation 2.50% 446 29.14 12,996
PNW Pinnacle West Capital Corporation 2.50% 156 83.54 13,032
PEG Public Service Enterprise Group Incorporated 2.49% 222 58.40 12,965
_______ ________
Total Investments 100.00% $520,600
======= ========
______________
See "Notes to Schedules of Investments" on page 44.
Page 29
Schedule of Investments
Target Focus Four Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
COMMON STOCKS (100.00%):
Communication Services (4.25%):
LUMN CenturyLink, Inc. 1.50% 574 $ 10.13 $ 5,815
CHL China Mobile Limited (ADR) + 0.39% 47 32.61 1,533
CHU China Unicom (Hong Kong) Limited (ADR) + 0.40% 232 6.69 1,552
EA Electronic Arts Inc. * 0.49% 15 125.99 1,890
ORAN Orange (ADR) + 0.40% 143 10.87 1,554
TEF Telefonica, S.A. (ADR) + 0.40% 400 3.88 1,552
TDS Telephone and Data Systems, Inc. 0.67% 137 18.93 2,593
Consumer Discretionary (8.75%):
BBY Best Buy Co., Inc. 0.33% 11 114.92 1,264
DAN Dana Inc. 0.67% 172 15.03 2,585
DPZ Domino's Pizza, Inc. 0.31% 3 401.01 1,203
EBAY eBay Inc. 0.47% 35 52.08 1,823
GIII G-III Apparel Group, Ltd. * 0.33% 85 15.28 1,299
GHC Graham Holdings Company 0.64% 6 414.57 2,487
HMC Honda Motor Co., Ltd. (ADR) + 0.40% 63 24.68 1,555
LOW Lowe's Companies, Inc. 1.67% 38 170.87 6,493
NWL Newell Brands Inc. 1.50% 321 18.10 5,810
TGT Target Corporation 1.04% 25 161.86 4,047
TM Toyota Motor Corporation (ADR) + 0.41% 12 132.95 1,595
TSCO Tractor Supply Company 0.31% 8 149.22 1,194
TPH TRI Pointe Group, Inc. * 0.67% 138 18.74 2,586
Consumer Staples (1.40%):
ANDE The Andersons, Inc. 0.33% 65 19.75 1,284
BTI British American Tobacco Plc (ADR) + 0.40% 44 35.31 1,554
CLX The Clorox Company 0.33% 6 212.86 1,277
SENEA Seneca Foods Corporation * 0.34% 33 39.58 1,306
Energy (5.91%):
BCEI Bonanza Creek Energy, Inc. * 0.33% 63 20.65 1,301
BP BP Plc (ADR) + 0.40% 89 17.49 1,557
VTOL Bristow Group Inc. * 0.33% 54 24.01 1,297
CNQ Canadian Natural Resources Limited + 0.40% 86 17.97 1,545
CEO CNOOC Limited (ADR) + 0.39% 15 99.87 1,498
LPG Dorian LPG Ltd. +* 0.33% 148 8.76 1,297
EC Ecopetrol S.A. (ADR) + 0.40% 152 10.18 1,547
EQNR Equinor ASA + 0.40% 106 14.63 1,551
PBR Petroleo Brasileiro S.A. - Petrobras (ADR) + 0.40% 210 7.38 1,550
RRC Range Resources Corporation 0.33% 160 8.09 1,294
RDS/A Royal Dutch Shell Plc (ADR) + 0.40% 59 26.44 1,560
Page 30
Schedule of Investments (cont'd.)
Target Focus Four Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
Energy (cont'd.):
CKH SEACOR Holdings Inc. * 0.33% 41 $ 31.32 $ 1,284
SU Suncor Energy Inc. + 0.40% 120 12.92 1,550
TOT Total SE (ADR) + 0.40% 44 34.93 1,537
INT World Fuel Services Corporation 0.67% 111 23.36 2,593
Financials (35.76%):
AEL American Equity Investment Life Holding Company 0.33% 42 30.96 1,300
ABCB Ameris Bancorp 0.33% 49 26.43 1,295
ASB Associated Banc-Corp 0.67% 181 14.30 2,588
AGO Assured Guaranty Ltd. + 0.33% 45 28.49 1,282
BBVA Banco Bilbao Vizcaya Argentaria, S.A. (ADR) + 0.40% 546 2.84 1,551
BKU BankUnited, Inc. 0.33% 52 24.77 1,288
BCS Barclays Plc (ADR) +* 0.40% 280 5.54 1,551
BHF Brighthouse Financial, Inc. * 0.66% 83 31.00 2,573
CFG Citizens Financial Group, Inc. 1.50% 204 28.56 5,826
CNO CNO Financial Group, Inc. 0.66% 143 18.03 2,578
CS Credit Suisse Group AG (ADR) + 0.40% 147 10.57 1,554
CUBI Customers Bancorp, Inc. * 0.33% 99 13.01 1,288
EWBC East West Bancorp, Inc. 0.67% 69 37.47 2,586
FNB F.N.B. Corporation 2.17% 1,102 7.62 8,397
FHI Federated Hermes, Inc. (Class B) 1.50% 236 24.61 5,808
FAF First American Financial Corporation 0.66% 49 52.27 2,561
FCF First Commonwealth Financial Corporation 0.33% 147 8.77 1,289
FFBC First Financial Bancorp. 0.33% 93 13.84 1,287
FULT Fulton Financial Corporation 0.67% 246 10.50 2,583
IBTX Independent Bank Group, Inc. 0.34% 27 48.34 1,305
ING ING Groep N.V. (ADR) +* 0.40% 197 7.86 1,548
IVZ Invesco Ltd. + 1.50% 449 12.95 5,815
LYG Lloyds Banking Group Plc (ADR) +* 0.40% 1,085 1.43 1,552
CASH Meta Financial Group, Inc. 0.33% 57 22.51 1,283
MET MetLife, Inc. 1.50% 146 39.85 5,818
MFG Mizuho Financial Group, Inc. (ADR) + 0.40% 611 2.54 1,552
NAVI Navient Corporation 0.67% 274 9.44 2,587
NYCB New York Community Bancorp, Inc. 1.50% 669 8.70 5,820
ONB Old National Bancorp 0.33% 93 13.90 1,293
PBCT People's United Financial, Inc. 1.50% 527 11.03 5,813
PFG Principal Financial Group, Inc. 1.50% 134 43.45 5,822
PRU Prudential Financial, Inc. 1.49% 85 68.27 5,803
Page 31
Schedule of Investments (cont'd.)
Target Focus Four Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
Financials (cont'd.):
RGA Reinsurance Group of America, Incorporated 0.67% 25 $ 104.45 $ 2,611
RNST Renasant Corporation 0.33% 47 27.17 1,277
SFNC Simmons First National Corporation 0.33% 74 17.49 1,294
STL Sterling Bancorp 0.66% 209 12.35 2,581
SF Stifel Financial Corp. 0.67% 46 56.52 2,600
SNV Synovus Financial Corp. 0.66% 104 24.77 2,576
UBS UBS Group AG + 0.40% 132 11.78 1,555
UMBF UMB Financial Corporation 0.67% 46 56.48 2,598
UBSI United Bankshares, Inc. 1.50% 235 24.81 5,830
UNM Unum Group 1.50% 306 19.00 5,814
VLY Valley National Bancorp 2.17% 1,091 7.70 8,401
VBTX Veritex Holdings, Inc. 0.33% 64 20.22 1,294
WBS Webster Financial Corporation 0.67% 86 30.07 2,586
WTFC Wintrust Financial Corporation 0.67% 53 48.73 2,583
Health Care (2.03%):
ACHC Acadia Healthcare Company, Inc. * 0.66% 80 32.12 2,570
IDXX IDEXX Laboratories, Inc. * 0.30% 3 393.51 1,181
REGN Regeneron Pharmaceuticals, Inc. * 0.77% 5 599.88 2,999
WST West Pharmaceutical Services, Inc. 0.30% 4 291.26 1,165
Industrials (2.29%):
FAST Fastenal Company 0.31% 26 46.00 1,196
GATX GATX Corporation 0.67% 38 68.70 2,611
GBX The Greenbrier Companies, Inc. 0.33% 38 33.77 1,283
ROL Rollins, Inc. 0.31% 21 57.02 1,197
R Ryder System, Inc. 0.67% 55 47.25 2,599
Information Technology (23.89%):
ADBE Adobe Incorporated * 3.16% 25 490.84 12,271
AMD Advanced Micro Devices, Inc. * 1.34% 60 86.51 5,191
AMAT Applied Materials, Inc. 0.73% 45 62.60 2,817
CDNS Cadence Design Systems, Inc. * 0.31% 11 109.32 1,203
CAJ Canon Inc. (ADR) + 0.40% 94 16.45 1,546
INTU Intuit Inc. 1.12% 13 334.99 4,355
KLAC KLA Corporation 0.32% 6 206.69 1,240
MSFT Microsoft Corporation 7.48% 138 210.58 29,060
MTSC MTS Systems Corporation 0.33% 57 22.62 1,289
NVDA NVIDIA Corporation 4.56% 32 553.55 17,714
PLAB Photronics, Inc. * 0.33% 122 10.63 1,297
NOW ServiceNow, Inc. * 1.28% 10 496.50 4,965
SNPS Synopsys, Inc. * 0.45% 8 219.03 1,752
Page 32
Schedule of Investments (cont'd.)
Target Focus Four Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
Information Technology (cont'd.):
TXN Texas Instruments Incorporated 1.75% 46 $ 148.06 $ 6,811
TTMI TTM Technologies, Inc. * 0.33% 106 12.18 1,291
Materials (4.54%):
UFS Domtar Corporation 0.67% 92 28.21 2,595
KRA Kraton Corp. * 0.33% 52 24.94 1,297
NEM Newmont Corporation 0.65% 41 61.72 2,531
NTR Nutrien Ltd. + 0.40% 38 40.76 1,549
OLN Olin Corporation 0.66% 164 15.74 2,581
RYAM Rayonier Advanced Materials Inc. * 0.33% 312 4.14 1,292
WRK WestRock Company 1.50% 154 37.77 5,817
Real Estate (3.67%):
CUZ Cousins Properties Incorporated (4) 0.67% 88 29.49 2,595
KRG Kite Realty Group Trust (4) 0.33% 106 12.22 1,295
OPI Office Properties Income Trust (4) 0.33% 59 21.76 1,284
RPT RPT Realty (4) 0.33% 223 5.80 1,293
SBRA Sabra Health Care REIT, Inc. (4) 0.67% 174 14.90 2,593
SVC Service Properties Trust (4) 0.67% 300 8.62 2,586
UE Urban Edge Properties (4) 0.67% 243 10.66 2,590
Utilities (7.51%):
EIX Edison International 1.50% 104 56.10 5,834
EXC Exelon Corporation 1.50% 148 39.32 5,819
NJR New Jersey Resources Corporation 1.50% 200 29.14 5,828
PNW Pinnacle West Capital Corporation 1.51% 70 83.54 5,848
PEG Public Service Enterprise Group Incorporated 1.50% 100 58.40 5,840
_______ ________
Total Investments 100.00% $388,278
======= ========
______________________
See "Notes to Schedules of Investments" on page 44.
Page 33
Schedule of Investments
Target Global Dividend Leaders Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
COMMON STOCKS (100.00%):
Communication Services (10.00%):
KT KT Corporation (ADR) + 2.00% 287 $ 9.85 $ 2,827
MBT Mobile TeleSystems PJSC (ADR) + 2.00% 331 8.54 2,827
PHI PLDT Inc. (ADR) + 1.99% 107 26.32 2,816
SKM SK Telecom Co., Ltd. (ADR) + 2.00% 123 22.93 2,820
VZ Verizon Communications Inc. 2.01% 48 59.19 2,841
Consumer Discretionary (8.00%):
BKE The Buckle, Inc. 2.00% 119 23.81 2,833
HRB H&R Block, Inc. 1.99% 159 17.73 2,819
HBI Hanesbrands Inc. 2.01% 167 16.97 2,834
RCII Rent-A-Center, Inc. 2.00% 86 32.83 2,823
Energy (5.98%):
CEO CNOOC Limited (ADR) + 1.98% 28 99.87 2,796
EURN Euronav N.V. + 2.00% 316 8.95 2,828
FRO Frontline Ltd. + 2.00% 412 6.86 2,826
Financials (16.99%):
ABR Arbor Realty Trust, Inc. (4) 1.00% 119 11.89 1,415
APAM Artisan Partners Asset Management Inc. 1.99% 66 42.66 2,816
NTB The Bank of N.T. Butterfield & Son Limited + 2.01% 111 25.53 2,834
FHI Federated Hermes, Inc. (Class B) 2.00% 115 24.61 2,830
IVZ Invesco Ltd. + 2.00% 218 12.95 2,823
KB KB Financial Group Inc. (ADR) + 2.01% 83 34.20 2,839
OMF OneMain Holdings, Inc. 1.99% 78 36.14 2,819
IX ORIX Corporation (ADR) + 1.99% 43 65.30 2,808
UNM Unum Group 2.00% 149 19.00 2,831
Industrials (8.00%):
ATCO Atlas Corp. + 2.00% 306 9.25 2,831
HNI HNI Corporation 2.00% 81 34.83 2,821
SCS Steelcase Inc. 2.00% 247 11.44 2,826
TRTN Triton International Limited + 2.00% 74 38.24 2,830
Information Technology (6.00%):
HPQ HP Inc. 2.00% 146 19.40 2,832
STX Seagate Technology Plc + 2.00% 55 51.33 2,823
XRX Xerox Holdings Corporation 2.00% 140 20.16 2,822
Materials (16.02%):
BHP BHP Group Ltd (ADR) + 2.01% 54 52.52 2,836
BCC Boise Cascade Company 2.00% 65 43.55 2,831
CMP Compass Minerals International, Inc. 2.00% 44 64.26 2,827
Page 34
Schedule of Investments (cont'd.)
Target Global Dividend Leaders Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
Materials (cont'd):
GEF Greif, Inc. 2.00% 68 $ 41.49 $ 2,821
LYB LyondellBasell Industries N.V. + 2.02% 36 79.26 2,853
PKX POSCO (ADR) + 1.99% 63 44.65 2,813
RIO Rio Tinto Plc (ADR) + 2.00% 46 61.52 2,830
SWM Schweitzer-Mauduit International, Inc. 2.00% 85 33.24 2,825
Real Estate (19.01%):
BXP Boston Properties, Inc. (4) 1.01% 17 84.17 1,431
CUZ Cousins Properties Incorporated (4) 1.00% 48 29.49 1,416
FCPT Four Corners Property Trust, Inc. (4) 1.00% 50 28.33 1,417
GLPI Gaming and Leisure Properties, Inc. (4) 1.00% 37 38.24 1,415
GEO The GEO Group, Inc. (4) 1.00% 125 11.28 1,410
HIW Highwoods Properties, Inc. (4) 0.99% 39 35.83 1,397
ILPT Industrial Logistics Properties Trust (4) 1.00% 63 22.34 1,407
IIPR Innovative Industrial Properties, Inc. (4) 1.01% 11 129.78 1,428
LXP Lexington Realty Trust (4) 1.00% 129 10.92 1,409
LSI Life Storage, Inc. (4) 0.98% 12 115.40 1,385
LTC LTC Properties, Inc. (4) 1.00% 39 36.13 1,409
NHI National Health Investors, Inc. (4) 1.01% 23 62.21 1,431
OHI Omega Healthcare Investors, Inc. (4) 1.01% 45 31.68 1,426
PDM Piedmont Office Realty Trust, Inc. (4) 1.00% 99 14.30 1,416
PSA Public Storage (4) 0.99% 6 232.02 1,392
SPG Simon Property Group, Inc. (4) 0.99% 20 70.07 1,401
STOR STORE Capital Corporation (4) 1.01% 50 28.41 1,421
WRI Weingarten Realty Investors (4) 1.00% 79 17.87 1,412
WELL Welltower Inc. (4) 1.01% 25 57.22 1,431
Utilities (10.00%):
AQN Algonquin Power & Utilities Corp. + 2.00% 181 15.60 2,824
EBR Centrais Eletricas Brasileiras S.A. (ADR) + 2.00% 507 5.58 2,829
NRG NRG Energy, Inc. 1.99% 87 32.35 2,814
PNW Pinnacle West Capital Corporation 2.01% 34 83.54 2,840
PPL PPL Corporation 2.00% 97 29.11 2,824
_______ ________
Total Investments 100.00% $141,311
======= ========
______________________
See "Notes to Schedules of Investments" on page 44.
Page 35
Schedule of Investments
Target Growth Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage Number Market Cost of
Ticker Symbol and of Aggregate of Value per Securities to
Name of Issuer of Securities (1)(3) Offering Price Shares Share the Trust (2)
___________________________________ ______________ ______ _________ _____________
COMMON STOCKS (100.00%):
Communication Services (6.57%):
FB Facebook, Inc. (Class A) * 3.27% 20 $ 263.76 $ 5,275
NFLX Netflix, Inc. * 3.30% 10 531.79 5,318
Consumer Discretionary (20.04%):
DHI D.R. Horton, Inc. 3.33% 69 77.71 5,362
EBAY eBay Inc. 3.33% 103 52.08 5,364
LOW Lowe's Companies, Inc. 3.29% 31 170.87 5,297
OLLI Ollie's Bargain Outlet Holdings, Inc. * 3.36% 58 93.38 5,416
POOL Pool Corporation 3.39% 16 340.85 5,454
PHM PulteGroup, Inc. 3.34% 110 48.97 5,387
Consumer Staples (3.32%):
DAR Darling Ingredients Inc. * 3.32% 132 40.54 5,351
Energy (3.33%):
LNG Cheniere Energy, Inc. * 3.33% 111 48.34 5,366
Financials (3.33%):
SPGI S&P Global Inc. 3.33% 15 357.20 5,358
Health Care (20.02%):
AVTR Avantor, Inc. * 3.33% 221 24.30 5,370
BIO Bio-Rad Laboratories, Inc. (Class A) * 3.42% 10 551.10 5,511
CRSP CRISPR Therapeutics AG +* 3.32% 56 95.39 5,342
DXCM DexCom, Inc. * 3.37% 14 387.50 5,425
HZNP Horizon Therapeutics Plc +* 3.32% 64 83.45 5,341
QDEL Quidel Corporation * 3.26% 19 276.78 5,259
Industrials (10.00%):
HWM Howmet Aerospace Inc. 3.34% 287 18.73 5,376
TREX Trex Company, Inc. * 3.32% 70 76.33 5,343
URI United Rentals, Inc. * 3.34% 27 199.49 5,386
Information Technology (19.98%):
AAPL Apple Inc. 3.35% 47 114.97 5,404
CDNS Cadence Design Systems, Inc. * 3.33% 49 109.32 5,357
ENPH Enphase Energy, Inc. * 3.34% 51 105.50 5,380
NOW ServiceNow, Inc. * 3.39% 11 496.50 5,462
SQ Square, Inc. (Class A) * 3.30% 29 183.50 5,321
ZM Zoom Video Communications, Inc. (Class A) * 3.27% 11 478.55 5,264
Materials (13.41%):
BTG B2Gold Corp. + 3.33% 820 6.55 5,371
GOLD Barrick Gold Corporation + 3.33% 197 27.27 5,372
KGC Kinross Gold Corporation +* 3.33% 623 8.62 5,370
SHW The Sherwin-Williams Company 3.42% 8 688.28 5,506
_______ ________
Total Investments 100.00% $161,108
======= ========
___________
See "Notes to Schedules of Investments" on page 44.
Page 36
Schedule of Investments
Target Triad Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
COMMON STOCKS (100.00%):
Communication Services (8.53%):
T AT&T Inc. 0.75% 71 $ 28.61 $ 2,031
CHL China Mobile Limited (ADR) + 0.40% 33 32.61 1,076
CHU China Unicom (Hong Kong) Limited (ADR) + 0.40% 161 6.69 1,077
FB Facebook, Inc. (Class A) * 1.96% 20 263.76 5,275
NFLX Netflix, Inc. * 1.97% 10 531.79 5,318
ORAN Orange (ADR) + 0.40% 99 10.87 1,076
SBGI Sinclair Broadcast Group, Inc. 0.75% 105 19.35 2,032
TEF Telefonica, S.A. (ADR) + 0.40% 278 3.88 1,079
TDS Telephone and Data Systems, Inc. 0.75% 107 18.93 2,026
VIAC ViacomCBS Inc. 0.75% 68 29.61 2,013
Consumer Discretionary (15.86%):
BIG Big Lots, Inc. 0.75% 40 50.79 2,032
DHI D.R. Horton, Inc. 1.99% 69 77.71 5,362
DDS Dillard's, Inc. (Class A) 0.75% 48 41.88 2,010
EBAY eBay Inc. 2.01% 104 52.08 5,416
GHC Graham Holdings Company 0.77% 5 414.57 2,073
HMC Honda Motor Co., Ltd. (ADR) + 0.40% 44 24.68 1,086
LOW Lowe's Companies, Inc. 2.03% 32 170.87 5,468
MGA Magna International Inc. (Class A) + 0.74% 38 52.73 2,004
OLLI Ollie's Bargain Outlet Holdings, Inc. * 2.01% 58 93.38 5,416
POOL Pool Corporation 2.02% 16 340.85 5,454
PHM PulteGroup, Inc. 2.00% 110 48.97 5,387
TM Toyota Motor Corporation (ADR) + 0.39% 8 132.95 1,064
Consumer Staples (5.42%):
ANDE The Andersons, Inc. 0.75% 102 19.75 2,014
BTI British American Tobacco Plc (ADR) + 0.41% 31 35.31 1,095
DAR Darling Ingredients Inc. * 2.00% 133 40.54 5,392
TSN Tyson Foods, Inc. (Class A) 0.74% 34 58.99 2,006
UVV Universal Corporation 0.76% 47 43.49 2,044
WBA Walgreens Boots Alliance, Inc. 0.76% 55 37.07 2,039
Energy (8.62%):
BP BP Plc (ADR) + 0.40% 62 17.49 1,084
CNQ Canadian Natural Resources Limited + 0.40% 60 17.97 1,078
LNG Cheniere Energy, Inc. * 2.01% 112 48.34 5,414
CEO CNOOC Limited (ADR) + 0.41% 11 99.87 1,099
DK Delek US Holdings, Inc. 0.75% 156 13.00 2,028
EC Ecopetrol S.A. (ADR) + 0.40% 106 10.18 1,079
EOG EOG Resources, Inc. 0.75% 54 37.67 2,034
Page 37
Schedule of Investments (cont'd.)
Target Triad Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
Energy (cont'd.):
EQNR Equinor ASA + 0.40% 74 $ 14.63 $ 1,083
HFC HollyFrontier Corporation 0.75% 94 21.50 2,021
IMO Imperial Oil Limited + 0.75% 158 12.83 2,027
PBR Petroleo Brasileiro S.A. - Petrobras (ADR) + 0.40% 146 7.38 1,077
RDS/A Royal Dutch Shell Plc (ADR) + 0.40% 41 26.44 1,084
SU Suncor Energy Inc. + 0.40% 83 12.92 1,072
TOT Total SE (ADR) + 0.40% 31 34.93 1,083
Financials (7.79%):
BBVA Banco Bilbao Vizcaya Argentaria, S.A. (ADR) + 0.40% 380 2.84 1,079
BCS Barclays Plc (ADR) +* 0.40% 195 5.54 1,080
CFG Citizens Financial Group, Inc. 0.75% 71 28.56 2,028
CS Credit Suisse Group AG (ADR) + 0.40% 102 10.57 1,078
ING ING Groep N.V. (ADR) +* 0.40% 137 7.86 1,077
LNC Lincoln National Corporation 0.75% 57 35.63 2,031
LYG Lloyds Banking Group Plc (ADR) +* 0.40% 755 1.43 1,080
MET MetLife, Inc. 0.75% 51 39.85 2,032
MFG Mizuho Financial Group, Inc. (ADR) + 0.40% 425 2.54 1,080
SPGI S&P Global Inc. 1.99% 15 357.20 5,358
UBS UBS Group AG + 0.40% 92 11.78 1,084
UNM Unum Group 0.75% 106 19.00 2,014
Health Care (15.02%):
ABBV AbbVie Inc. 0.74% 23 87.34 2,009
AVTR Avantor, Inc. * 2.00% 222 24.30 5,395
BIO Bio-Rad Laboratories, Inc. (Class A) * 2.04% 10 551.10 5,511
CRSP CRISPR Therapeutics AG +* 2.02% 57 95.39 5,437
DXCM DexCom, Inc. * 2.01% 14 387.50 5,425
HZNP Horizon Therapeutics Plc +* 2.01% 65 83.45 5,424
NHC National HealthCare Corporation 0.75% 31 65.46 2,029
PFE Pfizer Inc. 0.75% 55 36.89 2,029
PAHC Phibro Animal Health Corporation (Class A) 0.75% 111 18.30 2,031
QDEL Quidel Corporation * 1.95% 19 276.78 5,259
Industrials (9.01%):
AL Air Lease Corporation 0.75% 66 30.73 2,028
GBX The Greenbrier Companies, Inc. 0.75% 60 33.77 2,026
HWM Howmet Aerospace Inc. 2.00% 288 18.73 5,394
R Ryder System, Inc. 0.75% 43 47.25 2,032
TREX Trex Company, Inc. * 2.01% 71 76.33 5,419
TRN Trinity Industries, Inc. 0.75% 98 20.68 2,027
URI United Rentals, Inc. * 2.00% 27 199.49 5,386
Page 38
Schedule of Investments (cont'd.)
Target Triad Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1)(3) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
Information Technology (15.31%):
AAPL Apple Inc. 2.00% 47 $ 114.97 $ 5,404
CDNS Cadence Design Systems, Inc. * 1.99% 49 109.32 5,357
CAJ Canon Inc. (ADR) + 0.40% 66 16.45 1,086
ENPH Enphase Energy, Inc. * 1.99% 51 105.50 5,380
HPE Hewlett Packard Enterprise Company 0.75% 203 9.99 2,028
HOLI Hollysys Automation Technologies Ltd. + 0.75% 170 11.88 2,020
JNPR Juniper Networks, Inc. 0.75% 89 22.64 2,015
STX Seagate Technology Plc + 0.74% 39 51.33 2,002
NOW ServiceNow, Inc. * 2.02% 11 496.50 5,461
SQ Square, Inc. (Class A) * 1.97% 29 183.50 5,321
ZM Zoom Video Communications, Inc. (Class A) * 1.95% 11 478.55 5,264
Materials (11.44%):
BTG B2Gold Corp. + 2.00% 824 6.55 5,397
GOLD Barrick Gold Corporation + 2.00% 198 27.27 5,399
CRS Carpenter Technology Corporation 0.75% 106 19.06 2,020
KGC Kinross Gold Corporation +* 2.00% 626 8.62 5,396
KRO Kronos Worldwide, Inc. 0.75% 147 13.79 2,027
LYB LyondellBasell Industries N.V. + 0.76% 26 79.26 2,061
NTR Nutrien Ltd. + 0.39% 26 40.76 1,060
SHW The Sherwin-Williams Company 2.04% 8 688.28 5,506
STLD Steel Dynamics, Inc. 0.75% 62 32.84 2,036
Utilities (3.00%):
EXC Exelon Corporation 0.74% 51 39.32 2,005
NWE NorthWestern Corporation 0.75% 39 52.10 2,032
NRG NRG Energy, Inc. 0.76% 63 32.35 2,038
SJI South Jersey Industries, Inc. 0.75% 98 20.61 2,020
_______ ________
Total Investments 100.00% $269,845
======= ========
______________________
See "Notes to Schedules of Investments" on page 44.
Page 39
Schedule of Investments
Target VIP Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage Number Market Cost of
Ticker Symbol and of Aggregate of Value Securities to
Name of Issuer of Securities (1)(3) Offering Price Shares per Share the Trust (2)
___________________________________ ______________ ______ _________ _____________
COMMON STOCKS (100.00%):
Communication Services (8.56%):
GOOG Alphabet Inc. (Class C) * 1.13% 9 $1,485.93 $ 13,373
EA Electronic Arts Inc. * 0.31% 29 125.99 3,654
FB Facebook, Inc. (Class A) * 4.99% 223 263.76 58,818
NTES NetEase, Inc. (ADR) + 0.47% 63 88.42 5,570
ORA FP Orange # 0.83% 910 10.79 9,815
VOD LN Vodafone Group Plc # 0.83% 6,830 1.44 9,822
Consumer Discretionary (8.83%):
CRMT America's Car-Mart, Inc. * 0.22% 28 93.55 2,619
BBY Best Buy Co., Inc. 0.18% 18 114.92 2,069
CCS Century Communities, Inc. * 0.50% 129 45.69 5,894
CORE Core-Mark Holding Company, Inc. 0.46% 182 29.93 5,447
DG Dollar General Corporation 0.59% 32 218.88 7,004
DPZ Domino's Pizza, Inc. 0.34% 10 401.01 4,010
EBAY eBay Inc. 0.43% 97 52.08 5,052
LRN K12 Inc. * 0.41% 165 29.57 4,879
LZB La-Z-Boy Incorporated 0.54% 186 34.32 6,384
LOW Lowe's Companies, Inc. 2.32% 160 170.87 27,340
LULU lululemon athletica inc. +* 0.34% 12 337.94 4,055
MHO M/I Homes, Inc. * 0.44% 112 46.75 5,236
HZO MarineMax, Inc. * 0.20% 90 25.86 2,327
PETS PetMed Express, Inc. 0.22% 80 32.71 2,617
SNBR Sleep Number Corporation * 0.51% 111 54.19 6,015
TGT Target Corporation 0.59% 43 161.86 6,960
TSCO Tractor Supply Company 0.18% 14 149.22 2,089
HEAR Turtle Beach Corporation * 0.09% 61 17.97 1,096
ZUMZ Zumiez Inc. * 0.27% 101 31.02 3,133
Consumer Staples (4.34%):
BATS LN British American Tobacco Plc # 0.83% 278 35.30 9,813
CLX The Clorox Company 0.49% 27 212.86 5,748
ELF e.l.f. Beauty, Inc. * 0.36% 202 21.14 4,270
KMB Kimberly-Clark Corporation 0.59% 46 150.31 6,914
MNST Monster Beverage Corporation * 0.48% 71 79.17 5,621
SPTN SpartanNash Company 0.21% 146 17.02 2,485
TSCO LN Tesco Plc # 0.83% 3,522 2.79 9,823
USNA USANA Health Sciences, Inc. * 0.55% 85 76.47 6,500
Energy (3.32%):
BP/ LN BP Plc # 0.83% 3,440 2.86 9,823
ENI IM Eni SpA # 0.83% 1,213 8.10 9,821
RDSA NA Royal Dutch Shell Plc (Class A) # 0.83% 750 13.09 9,820
FP FP Total SE # 0.83% 283 34.68 9,815
Page 40
Schedule of Investments (cont'd.)
Target VIP Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage Number Market Cost of
Ticker Symbol and of Aggregate of Value Securities to
Name of Issuer of Securities (1)(3) Offering Price Shares per Share the Trust (2)
___________________________________ ______________ ______ _________ _____________
Financials (13.76%):
ALV GY Allianz SE # 0.84% 50 $ 197.18 $ 9,859
AMP Ameriprise Financial, Inc. 0.26% 18 169.31 3,048
CS FP AXA S.A. # 0.83% 515 19.06 9,816
ECPG Encore Capital Group, Inc. * 0.41% 126 38.43 4,842
JPM JPMorgan Chase & Co. 3.33% 386 101.78 39,287
MUV2 GY Muenchener Rueckversicherungs-Gesellschaft AG # 0.83% 38 258.70 9,831
NDA SS Nordea Bank Abp #* 0.83% 1,214 8.09 9,819
PIPR Piper Sandler Companies 0.38% 55 80.50 4,427
SPGI S&P Global Inc. 1.09% 36 357.20 12,859
TROW T. Rowe Price Group, Inc. 0.41% 34 140.83 4,788
TRV The Travelers Companies, Inc. 3.33% 340 115.62 39,311
VRTS Virtus Investment Partners, Inc. 0.38% 29 154.27 4,474
ZURN SW Zurich Insurance Group AG # 0.84% 28 355.55 9,955
Health Care (11.36%):
ADUS Addus HomeCare Corporation * 0.53% 65 96.22 6,254
ALGN Align Technology, Inc. * 0.17% 6 327.57 1,965
AMGN Amgen Inc. 3.32% 163 240.09 39,135
BAYN GY Bayer AG # 0.83% 180 54.46 9,803
BEAT BioTelemetry, Inc. * 0.54% 142 45.10 6,404
GSK LN GlaxoSmithKline Plc # 0.83% 533 18.43 9,823
IDXX IDEXX Laboratories, Inc. * 1.01% 30 393.51 11,806
IRWD Ironwood Pharmaceuticals, Inc. * 0.55% 619 10.49 6,493
LMNX Luminex Corporation 0.41% 196 24.56 4,814
MTD Mettler-Toledo International Inc. +* 0.52% 6 1,012.08 6,072
REGN Regeneron Pharmaceuticals, Inc. * 2.24% 44 599.88 26,395
WST West Pharmaceutical Services, Inc. 0.17% 7 291.26 2,039
ZYXI Zynex, Inc. * 0.24% 145 19.10 2,769
Industrials (7.46%):
AVAV AeroVironment, Inc. * 0.54% 92 69.50 6,394
ATSG Air Transport Services Group, Inc. * 0.54% 243 26.39 6,413
ALG Alamo Group Inc. 0.47% 47 117.29 5,513
AMWD American Woodmark Corporation * 0.54% 70 90.81 6,357
CBZ CBIZ, Inc. * 0.45% 221 24.01 5,306
EXPD Expeditors International of Washington, Inc. 0.43% 55 91.66 5,041
FAST Fastenal Company 0.34% 86 46.00 3,956
GBX The Greenbrier Companies, Inc. 0.38% 133 33.77 4,491
HRI Herc Holdings, Inc. * 0.46% 118 46.12 5,442
HNI HNI Corporation 0.52% 176 34.83 6,130
KAI Kadant Inc. 0.46% 47 114.51 5,382
MAS Masco Corporation 0.41% 85 57.34 4,874
MGRC McGrath RentCorp 0.56% 99 66.31 6,565
ODFL Old Dominion Freight Line, Inc. 0.64% 38 197.11 7,490
PATK Patrick Industries, Inc. 0.55% 102 63.34 6,461
ROL Rollins, Inc. 0.17% 35 57.02 1,996
Page 41
Schedule of Investments (cont'd.)
Target VIP Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage Number Market Cost of
Ticker Symbol and of Aggregate of Value Securities to
Name of Issuer of Securities (1)(3) Offering Price Shares per Share the Trust (2)
___________________________________ ______________ ______ _________ _____________
Information Technology (37.33%):
ADBE Adobe Incorporated * 3.58% 86 $ 490.84 $ 42,212
AMD Advanced Micro Devices, Inc. * 0.74% 101 86.51 8,738
AAPL Apple Inc. 11.64% 1,195 114.97 137,389
AMAT Applied Materials, Inc. 0.41% 77 62.60 4,820
CDNS Cadence Design Systems, Inc. * 0.34% 36 109.32 3,936
CTXS Citrix Systems, Inc. 0.40% 35 135.51 4,743
INTC Intel Corporation 3.33% 736 53.37 39,280
INTU Intuit Inc. 0.65% 23 334.99 7,705
KLAC KLA Corporation 0.18% 10 206.69 2,067
LRCX Lam Research Corporation 0.39% 13 355.43 4,621
MSFT Microsoft Corporation 4.16% 233 210.58 49,065
NPTN NeoPhotonics Corporation * 0.11% 205 6.56 1,345
EGOV NIC Inc. 0.48% 272 20.92 5,690
NVDA NVIDIA Corporation 5.26% 112 553.55 61,998
OSPN OneSpan Inc. * 0.33% 158 24.48 3,868
PRFT Perficient, Inc. * 0.52% 136 44.64 6,071
NOW ServiceNow, Inc. * 0.72% 17 496.50 8,440
SWKS Skyworks Solutions, Inc. 0.17% 13 151.55 1,970
SMCI Super Micro Computer, Inc. * 0.49% 211 27.61 5,826
SYKE Sykes Enterprises, Incorporated * 0.49% 162 35.62 5,770
SNPS Synopsys, Inc. * 0.24% 13 219.03 2,847
TER Teradyne, Inc. 0.34% 48 82.48 3,959
TXN Texas Instruments Incorporated 0.98% 78 148.06 11,549
UCTT Ultra Clean Holdings, Inc. * 0.32% 162 23.56 3,817
ZM Zoom Video Communications, Inc. (Class A) * 1.06% 26 478.55 12,442
Materials (2.02%):
BAS GY BASF SE # 0.83% 146 67.26 9,820
NEM Newmont Corporation 0.36% 69 61.72 4,259
RIO LN Rio Tinto Plc # 0.83% 160 61.28 9,805
Utilities (3.02%):
EOAN GY E.ON SE # 0.83% 855 11.49 9,821
ELE SM Endesa, S.A. # 0.83% 357 27.48 9,811
NG/ LN National Grid Plc # 0.83% 807 12.17 9,825
PPL PPL Corporation 0.13% 51 29.11 1,485
WEC WEC Energy Group, Inc. 0.18% 21 99.03 2,080
XEL Xcel Energy Inc. 0.22% 35 72.51 2,538
_______ __________
Total Investments 100.00% $1,179,242
======= ==========
___________
See "Notes to Schedules of Investments" on page 44.
Page 42
Schedule of Investments
Value Line(R) Target 25 Portfolio, 4th Quarter 2020 Series
FT 8950
At the Opening of Business on the Initial Date of Deposit-October 9, 2020
Percentage
of Aggregate Number Market Cost of
Ticker Symbol and Offering of Value per Securities to
Name of Issuer of Securities (1) Price Shares Share the Trust (2)
___________________________________ ____________ ______ _________ _____________
COMMON STOCKS (100.00%):
Communication Services (1.60%):
EA Electronic Arts Inc. * 1.60% 20 $ 125.99 $ 2,520
Consumer Discretionary (13.68%):
BBY Best Buy Co., Inc. 1.02% 14 114.92 1,609
DPZ Domino's Pizza, Inc. 1.02% 4 401.01 1,604
EBAY eBay Inc. 1.56% 47 52.08 2,448
LOW Lowe's Companies, Inc. 5.54% 51 170.87 8,714
TGT Target Corporation 3.50% 34 161.86 5,503
TSCO Tractor Supply Company 1.04% 11 149.22 1,641
Consumer Staples (1.08%):
CLX The Clorox Company 1.08% 8 212.86 1,703
Health Care (4.78%):
IDXX IDEXX Laboratories, Inc. * 1.00% 4 393.51 1,574
REGN Regeneron Pharmaceuticals, Inc. * 2.67% 7 599.88 4,199
WST West Pharmaceutical Services, Inc. 1.11% 6 291.26 1,747
Industrials (2.03%):
FAST Fastenal Company 1.02% 35 46.00 1,610
ROL Rollins, Inc. 1.01% 28 57.02 1,597
Information Technology (74.67%):
ADBE Adobe Incorporated * 10.29% 33 490.84 16,198
AMD Advanced Micro Devices, Inc. * 4.45% 81 86.51 7,007
AMAT Applied Materials, Inc. 2.43% 61 62.60 3,819
CDNS Cadence Design Systems, Inc. * 1.04% 15 109.32 1,640
INTU Intuit Inc. 3.83% 18 334.99 6,030
KLAC KLA Corporation 1.05% 8 206.69 1,653
MSFT Microsoft Corporation 24.89% 186 210.58 39,168
NVDA NVIDIA Corporation 15.13% 43 553.55 23,803
NOW ServiceNow, Inc. * 4.10% 13 496.50 6,454
SNPS Synopsys, Inc. * 1.53% 11 219.03 2,409
TXN Texas Instruments Incorporated 5.93% 63 148.06 9,328
Materials (2.16%):
NEM Newmont Corporation 2.16% 55 61.72 3,395
_______ ________
Total Investments 100.00% $157,373
======= ========
___________
See "Notes to Schedules of Investments" on page 44.
Page 43
NOTES TO SCHEDULES OF INVESTMENTS
(1) All Securities are represented by regular way contracts to purchase
such Securities which are backed by an irrevocable letter of credit
deposited with the Trustee. The Sponsor entered into purchase contracts
for the Securities on October 9, 2020. Such purchase contracts are
expected to settle within two business days.
(2) The cost of the Securities to a Trust represents the aggregate
underlying value with respect to the Securities acquired-generally
determined by the closing sale prices of the Securities on the
applicable exchange (where applicable, converted into U.S. dollars at
the exchange rate at the Evaluation Time) at the Evaluation Time on the
business day prior to the Initial Date of Deposit. The Evaluator, at its
discretion, may make adjustments to the prices of Securities held by a
Trust if an event occurs after the close of the market on which a
Security normally trades but before the Evaluation Time, depending on
the nature and significance of the event, consistent with applicable
regulatory guidance relating to fair value pricing. The cost of
Securities to a Trust may not compute due to rounding the market value
per share. The valuation of the Securities has been determined by the
Evaluator, an affiliate of the Sponsor. In accordance with Financial
Accounting Standards Board Accounting Standards Codification 820, "Fair
Value Measurement," each Trust's investments are classified as Level 1,
which refers to securities traded in an active market. The cost of the
Securities to the Sponsor and the Sponsor's loss (which is the
difference between the cost of the Securities to the Sponsor and the
cost of the Securities to a Trust) are set forth below:
Cost of Securities Profit
to Sponsor (Loss)
__________________ ________
The Dow(R) Target 5 Portfolio, 4th Quarter 2020 Series $ 172,109 $ (1,030)
The Dow(R) Target Dividend Portfolio, 4th Quarter 2020 Series 180,452 (1,722)
S&P Dividend Aristocrats Target 25 Portfolio, 4th Quarter 2020 Series 181,061 (1,317)
S&P Target 24 Portfolio, 4th Quarter 2020 Series 241,050 (1,043)
S&P Target SMid 60 Portfolio, 4th Quarter 2020 Series 170,588 (1,792)
Target Diversified Dividend Portfolio, 4th Quarter 2020 Series 151,034 (1,467)
Target Double Play Portfolio, 4th Quarter 2020 Series 523,810 (3,210)
Target Focus Four Portfolio, 4th Quarter 2020 Series 391,228 (2,950)
Target Global Dividend Leaders Portfolio, 4th Quarter 2020 Series 142,486 (1,175)
Target Growth Portfolio, 4th Quarter 2020 Series 163,123 (2,015)
Target Triad Portfolio, 4th Quarter 2020 Series 272,858 (3,013)
Target VIP Portfolio, 4th Quarter 2020 Series 1,185,607 (6,365)
Value Line(R) Target 25 Portfolio, 4th Quarter 2020 Series 157,801 (428)
(3) Common stocks of companies headquartered or incorporated outside the
United States comprise the approximate percentage of the investments of the
Trusts as indicated:
The Dow(R) Target Dividend Portfolio, 4th Quarter 2020 Series, 5.00%
(consisting of Bermuda, 5.000%)
S&P Dividend Aristocrats Target 25 Portfolio, 4th Quarter 2020 Series, 4.00%
(consisting of United Kingdom, 4.00%)
S&P Target 24 Portfolio, 4th Quarter 2020 Series, 2.95%
(consisting of Switzerland, 2.95%)
S&P Target SMid 60 Portfolio, 4th Quarter 2020 Series, 2.22%
(consisting of Bermuda, 1.11% and Marshall Islands, 1.11%)
Target Diversified Dividend Portfolio, 4th Quarter 2020 Series, 12.50%
(consisting of Canada, 5.00%; China, 2.50%; Ireland, 2.51% and The
Netherlands, 2.49%)
Target Double Play Portfolio, 4th Quarter 2020 Series, 2.50%
(consisting of Bermuda, 2.50%)
Target Focus Four Portfolio, 4th Quarter 2020 Series, 12.15%
(consisting of Bermuda, 1.83%; Brazil, 0.40%; Canada, 1.20%; China, 0.39%;
Colombia, 0.40%; France, 0.80%; Hong Kong, 0.79%; Japan, 1.61%; Marshall
Islands, 0.33%; The Netherlands, 0.80%; Norway, 0.40%; Spain, 0.80%;
Switzerland, 0.80% and United Kingdom, 1.60%)
Target Global Dividend Leaders Portfolio, 4th Quarter 2020 Series, 40.00%
(consisting of Australia, 2.01%; Belgium, 2.00%; Bermuda, 6.01%; Brazil,
2.00%; Canada, 4.00%; China, 1.98%; Ireland, 2.00%; Japan, 1.99%; The
Netherlands, 2.02%; Norway, 2.00%; Philippines, 1.99%; Russia, 2.00%; South
Korea, 8.00% and United Kingdom, 2.00%)
Target Growth Portfolio, 4th Quarter 2020 Series, 16.63%
(consisting of Canada, 9.99%; Ireland, 3.32% and Switzerland, 3.32%)
Page 44
Target Triad Portfolio, 4th Quarter 2020 Series, 23.77%
(consisting of Brazil, 0.40%; Canada, 8.68%; China, 1.16%; Colombia, 0.40%;
France, 0.80%; Hong Kong, 0.80%; Ireland, 2.75%; Japan, 1.59%; The
Netherlands, 1.56%; Norway, 0.40%; Spain, 0.80%; Switzerland, 2.82% and United
Kingdom, 1.61%)
Target VIP Portfolio, 4th Quarter 2020 Series, 17.95%
(consisting of Canada, 0.34%; China, 0.47%; Finland, 0.83%; France, 2.49%;
Germany, 4.16%; Italy, 0.83%; The Netherlands, 0.83%; Spain, 0.83%;
Switzerland, 1.36% and United Kingdom, 5.81%)
(4) This Security represents the common stock of a Real Estate Investment
Trust ("REIT"). REITs which invest in mortgage loans and mortgage-backed
securities are included in the Financials sector whereas REITs which directly
hold real estate properties are included in the Real Estate sector. REITs
comprise the approximate percentage of the investments of the Trusts as
indicated:
S&P Target SMid 60 Portfolio, 4th Quarter 2020 Series, 12.23%
Target Focus Four Portfolio, 4th Quarter 2020 Series, 3.67%
Target Global Dividend Leaders Portfolio, 4th Quarter 2020 Series, 20.01%
+ This Security represents the common stock of a foreign company which trades
directly or through an American Depositary Receipt/ADR on the over-the-counter
market or on a U.S. national securities exchange.
# This Security represents the common stock of a foreign company which trades
directly on a foreign securities exchange.
* This Security represents a non-income producing security.
Page 45
The FT Series
The FT Series Defined.
We, First Trust Portfolios L.P. (the "Sponsor"), have created hundreds of
similar yet separate series of a unit investment trust which we have named the
FT Series. The series to which this prospectus relates, FT 8950, consists of
13 separate portfolios set forth below:
- Dow(R) Target 5 4Q '20 - Term 1/7/22
(The Dow(R) Target 5 Portfolio, 4th Quarter 2020 Series)
- Dow(R) Target Dvd. 4Q '20 - Term 1/7/22
(The Dow(R) Target Dividend Portfolio, 4th Quarter 2020 Series)
- S&P Dvd. Aristocrats Target 25 4Q '20 - Term 1/7/22
(S&P Dividend Aristocrats Target 25 Portfolio, 4th Quarter 2020 Series)
- S&P Target 24 4Q '20 - Term 1/7/22
(S&P Target 24 Portfolio, 4th Quarter 2020 Series)
- S&P Target SMid 60 4Q '20 - Term 1/7/22
(S&P Target SMid 60 Portfolio, 4th Quarter 2020 Series)
- Target Divsd. Dvd. 4Q '20 - Term 1/7/22
(Target Diversified Dividend Portfolio, 4th Quarter 2020 Series)
- Target Dbl. Play 4Q '20 - Term 1/7/22
(Target Double Play Portfolio, 4th Quarter 2020 Series)
- Target Focus 4 4Q '20 - Term 1/7/22
(Target Focus Four Portfolio, 4th Quarter 2020 Series)
- Target Global Dvd. Leaders 4Q '20 - Term 1/7/22
(Target Global Dividend Leaders Portfolio, 4th Quarter 2020 Series)
- Target Growth 4Q '20 - Term 1/7/22
(Target Growth Portfolio, 4th Quarter 2020 Series)
- Target Triad 4Q '20 - Term 1/7/22
(Target Triad Portfolio, 4th Quarter 2020 Series)
- Target VIP 4Q '20 - Term 1/7/22
(Target VIP Portfolio, 4th Quarter 2020 Series)
- Value Line(R) Target 25 4Q '20 - Term 1/7/22
(Value Line(R) Target 25 Portfolio, 4th Quarter 2020 Series)
Each Trust was created under the laws of the State of New York by a Trust
Agreement (the "Indenture") dated the Initial Date of Deposit. This agreement,
entered into among First Trust Portfolios L.P., as Sponsor, The Bank of New
York Mellon as Trustee and First Trust Advisors L.P. as Portfolio Supervisor
and Evaluator, governs the operation of the Trusts.
YOU MAY GET MORE SPECIFIC DETAILS CONCERNING THE NATURE, STRUCTURE AND RISKS OF
THIS PRODUCT IN AN "INFORMATION SUPPLEMENT" BY CALLING THE SPONSOR AT
800-621-1675, DEPT. CODE 2.
How We Created the Trusts.
On the Initial Date of Deposit, we deposited portfolios of common stocks with
the Trustee and, in turn, the Trustee delivered documents to us representing
our ownership of the Trusts in the form of units ("Units").
After the Initial Date of Deposit, we may deposit additional Securities in a
Trust, or cash (including a letter of credit or the equivalent) with
instructions to buy more Securities, to create new Units for sale. If we
create additional Units, we will attempt, to the extent practicable, to
maintain the percentage relationship established among the Securities on the
Initial Date of Deposit (as set forth in "Schedule of Investments" for each
Trust), adjusted to reflect the sale, redemption or liquidation of any of the
Securities or any stock split or a merger or other similar event affecting the
issuer of the Securities.
Since the prices of the Securities will fluctuate daily, the ratio of
Securities in a Trust, on a market value basis, will also change daily. The
portion of Securities represented by each Unit will not change as a result of
the deposit of additional Securities or cash in a Trust. If we deposit cash,
you and new investors may experience a dilution of your investment. This is
because prices of Securities will fluctuate between the time of the cash
deposit and the purchase of the Securities, and because the Trusts pay the
associated brokerage fees. To reduce this dilution, the Trusts will try to buy
the Securities as close to the Evaluation Time and as close to the evaluation
price as possible. In addition, because the Trusts pay the brokerage fees
associated with the creation of new Units and with the sale of Securities to
meet redemption and exchange requests, frequent redemption and exchange
activity will likely result in higher brokerage expenses.
An affiliate of the Trustee may receive these brokerage fees or the Trustee
may retain and pay us (or our affiliate) to act as agent for a Trust to buy
Securities. If we or an affiliate of ours act as agent to a Trust, we will be
subject to the restrictions under the Investment Company Act of 1940, as
amended (the "1940 Act"). When acting in an agency capacity, we may select
various broker/dealers to execute securities transactions on behalf of the
Trusts, which may include broker/dealers who sell Units of the Trusts. We do
not consider sales of Units of the Trusts or any other products sponsored by
First Trust as a factor in selecting such broker/dealers.
We cannot guarantee that a Trust will keep its present size and composition
for any length of time. Securities may be periodically sold under certain
circumstances to satisfy Trust obligations, to meet redemption requests and,
as described in "Removing Securities from a Trust," to maintain the sound
investment character of a Trust, and the proceeds received by a Trust will be
Page 46
used to meet Trust obligations or distributed to Unit holders, but will not be
reinvested. However, Securities will not be sold to take advantage of market
fluctuations or changes in anticipated rates of appreciation or depreciation,
or if they no longer meet the criteria by which they were selected. You will
not be able to dispose of or vote any of the Securities in the Trusts. As the
holder of the Securities, the Trustee will vote the Securities and, except as
described in "Removing Securities from a Trust," will endeavor to vote the
Securities such that the Securities are voted as closely as possible in the
same manner and the same general proportion as are the Securities held by
owners other than such Trust.
Neither we nor the Trustee will be liable for a failure in any of the
Securities. However, if a contract for the purchase of any of the Securities
initially deposited in a Trust fails, unless we can purchase substitute
Securities ("Replacement Securities") we will refund to you that portion of
the purchase price and transactional sales charge resulting from the failed
contract on the next Distribution Date. Any Replacement Security a Trust
acquires will be identical to those from the failed contract.
Portfolios
Objective.
Each Trust seeks above-average total return. To achieve this objective, each
Trust will invest in the common stocks of companies which are selected by
applying a unique specialized strategy. While the Trusts seek above-average
total return, each follows a different investment strategy. We cannot
guarantee that a Trust will achieve its objective or that a Trust will make
money once expenses are deducted. Under normal circumstances, the Dow(R)
Target Dividend Portfolio, S&P Dividend Aristocrats Target 25 Portfolio,
Target Diversified Dividend Portfolio and Target Global Dividend Leaders
Portfolio will invest at least 80% of their assets in dividend-paying
securities and the S&P Target SMid 60 Portfolio will invest at least 80% of
its assets in small and/or mid capitalization companies. Under normal
circumstances, the Target Global Dividend Leaders Portfolio will invest at
least 40% of its assets in non-U.S. securities.
The Dow(R) Target 5 Portfolio is concentrated in stocks of the industry or
group of industries comprising the consumer staples sector. The Dow(R) Target
Dividend Portfolio is concentrated in stocks of the industry or group of
industries comprising the financials and utilities sectors. The S&P Dvd.
Aristocrats Target 25 Portfolio is concentrated in stocks of the industry or
group of industries comprising the industrials sector. The S&P Target 24
Portfolio, the Target VIP Portfolio and the Value Line(R) Target 25 Portfolio
are concentrated in stocks of the industry or group of industries comprising
the information technology sector. The S&P Target SMid 60 Portfolio and the
Target Focus Four Portfolio are concentrated in stocks of the industry or
group of industries comprising the financials sector. The Target Double Play
Portfolio is concentrated in stocks of the industry or group of industries
comprising the financials and information technology sectors.
Portfolio Selection Process.
The Dow(R) Target 5 Portfolio
The Dow(R) Target 5 Portfolio invests in stocks with high dividend yields.
The Dow(R) Target 5 Strategy seeks to amplify this dividend yield strategy by
selecting the five lowest priced stocks of the 10 highest dividend-yielding
stocks in the Dow Jones Industrial Average ("DJIA(R)").
The Dow(R) Target 5 Strategy stocks are determined as follows:
Step 1: We rank all 30 stocks contained in the DJIA(R) by their current
indicated dividend yield as of the business day prior to the date of this
prospectus.
Step 2: We then select the 10 highest dividend-yielding stocks from this group.
Step 3: From the 10 stocks selected in Step 2, we select an equally-weighted
portfolio of the five stocks with the lowest per share stock price for The
Dow(R) Target 5 Strategy.
The Dow(R) Target Dividend Portfolio
The Dow(R) Target Dividend Strategy selects a portfolio of the 20 stocks from
the Dow Jones U.S. Select Dividend Index(sm) with the best overall ranking on
both the change in return on assets over the last 12 months and price-to-book
as a means to seek to achieve its investment objective.
The Dow(R) Target Dividend Strategy stocks are determined as follows:
Step 1: We rank all 100 stocks contained in the Dow Jones U.S. Select Dividend
Index(sm) as of two business days prior to the date of this prospectus (best
[1] to worst [100]) by the following equally-weighted factors:
Page 47
- Change in return on assets over the last 12 months. An increase in
return on assets is generally used as an indication of improving business
fundamentals and would receive a higher ranking than a stock with a
negative change in return on assets.
- Price-to-book. A lower, but positive, price-to-book ratio is generally
used as an indication of value.
Step 2: We then select an equally-weighted portfolio of the 20 stocks with the
best overall combined ranking on the two factors for The Dow(R) Target
Dividend Strategy. In the event of a tie, the stock with the better price-to-
book ratio is selected.
Companies which, as of the business day prior to the Initial Date of Deposit,
Dow Jones has announced will be removed from the Dow Jones U.S. Select
Dividend Index(sm), or that are likely to be removed, based on Dow Jones
selection criteria, from the Dow Jones U.S. Select Dividend Index(sm) within
thirty days from the selection date, have been removed from the universe of
securities from which The Dow(R) Target Dividend Strategy stocks are selected.
S&P Dividend Aristocrats Target 25 Portfolio
The S&P Dividend Aristocrats Target 25 Strategy invests in companies from the
S&P 500(R) Dividend Aristocrats(R) Index. The index consists of companies from
the S&P 500(R) Index that have increased dividends every year for the last 25
consecutive years. The S&P Dividend Aristocrats Target 25 Strategy stocks are
determined as follows:
Step 1: We begin with all stocks contained in the S&P 500(R) Dividend
Aristocrats(R) Index as of two business days prior to the date of this
prospectus. Regulated investment companies, limited partnerships and business
development companies are not eligible for selection.
Step 2: We rank each stock on three equally-weighted factors:
- Debt-to-equity. Compares a company's long-term debt to their
stockholder's equity. Higher levels of this ratio are associated with
higher risk, lower levels with lower risk.
- Price to cash flow. Measures the cost of a company's stock for every
dollar of cash flow generated. A lower, but positive, ratio indicates
investors are paying less for the cash flow generated which can be a sign
of value.
- Return on assets. Compares a company's net income to its total assets.
The ratio shows how efficiently a company generates net income from its
assets.
Step 3: We rank each of the companies by their combined factor scores.
Step 4: We select an approximately equally-weighted portfolio of the best
scoring 25 stocks with a maximum of seven stocks from any one of the major
Global Industry Classification Standard ("GICS(R)") market sectors. If more
than seven stocks from any one of the major GICS(R) sectors are selected,
these stocks are excluded and replaced with the next best scoring stocks which
satisfy the criteria set forth above. In the event of a tie, the stock with
the better return-on-assets ratio is selected.
S&P Target 24 Portfolio
The S&P Target 24 Strategy selects a portfolio of 24 common stocks from the
S&P 500(R) Index which are based on the following steps:
Step 1: All of the economic sectors in the S&P 500(R) Index are ranked by
market capitalization as of two business days prior to the date of this
prospectus and the eight largest sectors are selected.
Step 2: The stocks in each of those eight sectors are then ranked among their
peers based on three distinct factors:
- Trailing four quarters' return on assets, which is net income divided by
average assets. Those stocks with high return on assets achieve better
rankings;
- Buyback yield, which measures the percentage decrease in common stock
outstanding versus one year earlier. Those stocks with greater percentage
decreases receive better rankings; and
- Bullish interest indicator, which is measured over the trailing 12
months by subtracting the number of shares traded in months in which the
stock price declined from the number of shares traded in months in which
the stock price rose and dividing the resulting number by the total number
of shares traded over the 12-month period. Those stocks with a high
bullish interest indicator achieve better rankings.
Step 3: The three stocks from each of the eight sectors with the highest
combined ranking on these three factors are selected for S&P Target 24
Strategy. In the event of a tie within a sector, the stock with the higher
market capitalization is selected.
Page 48
Each stock receives a weighting equivalent to its relative market value among
the three stocks from the individual sector. The combined weight of the three
stocks for a sector is equal to the sector's equivalent weighting among the
eight sectors from which stocks are selected. However, no individual stock
will comprise 25% or more of the S&P Target 24 Portfolio as of the date of
this prospectus. The Securities will be adjusted on a proportionate basis to
accommodate this constraint.
S&P Target SMid 60 Portfolio
This small and mid-capitalization strategy is designed to identify stocks with
improving fundamental performance and market sentiment. The S&P Target SMid 60
Strategy stocks are determined as follows:
Step 1: We begin with the stocks that comprise the Standard & Poor's MidCap
400(R) Index ("S&P MidCap 400(R)") and the Standard & Poor's SmallCap 600(R)
Index ("S&P SmallCap 600(R)") as of two business days prior to the date of
this prospectus.
Step 2: We rank the stocks in each index by price-to-book value and select the
best quartile from each index--100 stocks from the S&P MidCap 400(R) and 150
stocks from the S&P SmallCap 600(R) with the lowest, but positive, price-to-
book ratio.
Step 3: We rank each stock on three equally-weighted factors:
- Price to cash flow;
- 12-month change in return on assets; and
- 3-month price appreciation.
Step 4: We eliminate any regulated investment companies, limited partnerships,
business development companies and any stock with a market capitalization of
less than $250 million and with an average daily trading volume of less than
$250,000.
Step 5: The 30 stocks from each index with the highest combined ranking on the
three factors set forth in Step 3 are selected for the portfolio. In the event
of a tie, the stock with the better price to cash flow ratio is selected.
Step 6: The stocks selected from the S&P MidCap 400(R) are given approximately
twice the weight of the stocks selected from the S&P SmallCap 600(R), taking
into consideration that only whole shares will be purchased.
Target Diversified Dividend Portfolio
The Target Diversified Dividend Strategy seeks above-average total return
through a combination of capital appreciation and dividend income by adhering
to a simple investment strategy; however, there is no assurance the objective
will be met. The Target Diversified Dividend Strategy stocks are determined as
follows:
Step 1: We begin with all stocks traded on a U.S. exchange as of two business
days prior to the date of this prospectus and screen for the following:
- Minimum market capitalization of $250 million;
- Minimum three-month average daily trading volume of $1.5 million; and
- Minimum stock price of $5.
Step 2: We eliminate REITs, American Depositary Receipts/ADRs, regulated
investment companies and limited partnerships.
Step 3: We select only those stocks with positive three-year dividend growth.
Step 4: We rank each remaining stock on three factors:
- Indicated dividend yield - 50%;
- Price-to-book - 25%; and
- Payout ratio - 25%.
Step 5: We purchase an approximately equally-weighted portfolio consisting of
four stocks from each of the major S&P GICS(R) market sectors with the highest
combined ranking on the three factors. The Financials and Real Estate sectors
are combined for the sector limit purpose. In the event of a tie, the stock
with the better price-to-book ratio is selected.
Target Double Play Portfolio
The Target Double Play Portfolio invests in the common stocks of companies
which are selected by applying two separate uniquely specialized strategies.
The composition of the Target Double Play Portfolio on the Initial Date of
Deposit is as follows:
- Approximately 1/2 of the portfolio is composed of common stocks which
comprise The Dow(R) Target Dividend Strategy; and
- Approximately 1/2 of the portfolio is composed of common stocks which
comprise the Value Line(R) Target 25 Strategy.
The Securities which comprise The Dow(R) Target Dividend Strategy portion of
the Trust were chosen by applying the same selection criteria set forth above
Page 49
under the caption "The Dow(R) Target Dividend Portfolio." The Securities which
comprise the Value Line(R) Target 25 Strategy portion of the Trust were
selected as follows:
Value Line(R) Target 25 Strategy.
The Value Line(R) Target 25 Strategy invests in 25 of the 100 stocks that
Value Line(R) gives a #1 ranking for Timeliness(TM) which have recently
exhibited certain positive financial attributes. Value Line(R) ranks 1,700
stocks which represent approximately 95% of the trading volume on all U.S.
stock exchanges. Of these 1,700 stocks, only 100 are given their #1 ranking
for Timeliness(TM), which measures Value Line's view of their probable price
performance during the next six to 12 months relative to the others. Value
Line(R) bases their rankings on various factors, including long-term trend of
earnings, prices, recent earnings, price momentum, and earnings surprise. The
Value Line(R) Target 25 Strategy stocks are determined as follows:
Step 1: We start with the 100 stocks which Value Line(R), as of two business
days prior to the date of this prospectus, gives their #1 ranking for
Timeliness(TM) and apply the following rankings as of two business days prior
to the date of this prospectus.
Step 2: We rank these stocks for consistent growth based on 12-month and 6-
month price appreciation (best [1] to worst [100]).
Step 3: We then rank the stocks for profitability by their return on assets.
Step 4: Finally, we rank the stocks for value based on their price to cash flow.
Step 5: We add up the numerical ranks achieved by each company in the above
steps and select the 25 eligible stocks with the lowest sums for the Value
Line(R) Target 25 Strategy. Stocks of financial companies, as defined by
S&P's GICS(R), the stocks of companies whose shares are not listed on a U.S.
securities exchange, and stocks of limited partnerships are not eligible for
inclusion in the Value Line(R) Target 25 Strategy stocks. In the event of a
tie, the stock with the greatest 6-month price appreciation is selected.
The stocks which comprise the Value Line(R) Target 25 Strategy are weighted
by market capitalization subject to the restriction that no stock will
comprise less than approximately 1% or 25% or more of the Value Line(R)
Target 25 Strategy portion of the portfolio on the date of this prospectus.
The Securities will be adjusted on a proportionate basis to accommodate this
constraint.
Target Focus Four Portfolio
The Target Focus Four Portfolio invests in the common stocks of companies
which are selected by applying four separate uniquely specialized strategies.
The composition of the Target Focus Four Portfolio on the Initial Date of
Deposit is as follows:
- Approximately 30% of the portfolio is composed of common stocks which
comprise The Dow(R) Target Dividend Strategy;
- Approximately 30% of the portfolio is composed of common stocks which
comprise the S&P Target SMid 60 Strategy;
- Approximately 30% of the portfolio is composed of common stocks which
comprise the Value Line(R) Target 25 Strategy; and
- Approximately 10% of the portfolio is composed of common stocks which
comprise the NYSE(R) International Target 25 Strategy.
The Securities which comprise The Dow(R) Target Dividend Strategy, the S&P
Target SMid 60 Strategy and the Value Line(R) Target 25 Strategy portions of
the Trust were chosen by applying the same selection criteria set forth above
under the captions "The Dow(R) Target Dividend Portfolio," "S&P Target SMid 60
Portfolio" and "Double Play Portfolio," respectively. The Securities which
comprise The NYSE(R) International Target 25 Strategy were selected as
follows:
NYSE(R) International Target 25 Strategy:
The NYSE(R) International Target 25 Strategy provides investors with a way
to strategically invest in foreign companies. The NYSE(R) International
Target 25 Strategy stocks are determined as follows:
Step 1: We begin with the stocks that comprise the NYSE International 100
Index(sm) as of two business days prior to the date of this prospectus. The
index consists of the 100 largest non-U.S. stocks trading on the NYSE.
Step 2: We rank each stock on two equally-weighted factors:
- Price-to-book; and
- Price to cash flow.
Lower, but positive, price-to-book and price to cash flow ratios are generally
used as an indication of value.
Step 3: We screen for liquidity by eliminating companies with average daily
trading volume below $300,000 for the prior three months.
Step 4: We purchase an approximately equally-weighted portfolio of the 25
eligible stocks with the best overall ranking on the two factors, taking into
Page 50
consideration that only whole shares will be purchased. In the event of a tie,
the stock with the better price-to-book ratio is selected.
Target Global Dividend Leaders Portfolio
The Target Global Dividend Leaders Strategy stocks are determined based on
these steps:
Step 1: We establish three distinct universes as of two business days prior to
the Initial Date of Deposit which consist of the following:
- Domestic equity - all U.S. stocks.
- International equity - all foreign stocks that are listed on a U.S.
securities exchange either directly or in the form of American Depositary
Receipts/ADRs.
- REITs - all U.S. REITs (including Mortgage REITs).
Step 2: Regulated investment companies and limited partnerships are excluded
from all universes. REITs (including Mortgage REITs) are also excluded from
the domestic and international equity universes.
Step 3: We select the stocks in each universe that meet the following criteria:
- Market capitalization greater than $1 billion.
- Three-month average daily trading volume greater than $1 million.
- Current indicated dividend yield greater than twice that of the S&P
500(R) Index at the time of selection.
Step 4: We rank the selected stocks within each universe on three equally-
weighted factors: price to cash flow; return on assets; and 3, 6 and 12-month
price appreciation.
Step 5: We select the 20 stocks within each universe with the best overall
combined rankings. The domestic and international equity universes are subject
to a maximum of four stocks from any one of the major GICS(R) market sectors.
The Financials and Real Estate sectors are combined for the sector limit
purpose. If a universe has less than 20 eligible securities, all eligible
securities are selected.
Step 6: The universes are approximately weighted as shown below. Stocks are
approximately equally-weighted within their universe, taking into
consideration that only whole shares will be purchased.
- 40% domestic equity.
- 40% international equity.
- 20% REITs.
Target Growth Portfolio
The Target Growth Strategy invests in stocks with large market capitalizations
which have recently exhibited certain positive financial attributes. The
Target Growth Strategy stocks are determined as follows:
Step 1: We begin with all stocks traded on a U.S. exchange as of two business
days prior to the date of this prospectus and screen for the following:
- Minimum market capitalization of $6 billion;
- Minimum three month average daily trading volume of $5 million; and
- Minimum stock price of $5.
Step 2: We eliminate REITs, American Depositary Receipts/ADRs, regulated
investment companies and limited partnerships.
Step 3: We select only those stocks with positive one year sales growth.
Step 4: We rank the remaining stocks on three equally-weighted factors:
- Sustainable growth rate (a measurement of a company's implied growth
rate that can be funded with its internal capital; it is calculated by
multiplying return on equity over the trailing 12 months by (1- payout
ratio), where payout ratio is the trailing 12 months dividends per share
divided by trailing 12 months earnings per share);
- Change in return on assets; and
- Recent 6-month price appreciation.
Step 5: We purchase an approximately equally-weighted portfolio of the 30
stocks with the highest combined ranking on the three factors, subject to a
maximum of six stocks from any one of the major GICS(R) market sectors. The
Financials and Real Estate sectors are combined for the sector limit purpose.
In the event of a tie, the stock with the higher sustainable growth rate is
selected.
Target Triad Portfolio
The Target Triad Portfolio invests in the common stocks of companies which are
selected by applying three separate uniquely specialized strategies.
The composition of the Target Triad Portfolio on the Initial Date of Deposit
is as follows:
- Approximately 10% of the portfolio is composed of common stocks which
comprise the NYSE(R) International Target 25 Strategy;
Page 51
- Approximately 30% of the portfolio is composed of common stocks which
comprise the Target Diversified Dividend Strategy; and
- Approximately 60% of the portfolio is composed of common stocks which
comprise the Target Growth Strategy.
The Securities which comprise the NYSE(R) International Target 25 Strategy,
the Target Diversified Dividend Strategy and the Target Growth Strategy
portions of the Trust were chosen by applying the same selection criteria set
forth above under the captions "Target Focus Four Portfolio," "Target
Diversified Dividend Portfolio" and "Target Growth Portfolio," respectively.
Target VIP Portfolio
The Target VIP Portfolio invests in the common stocks of companies which are
selected by applying six separate uniquely specialized strategies.
The composition of the Target VIP Strategy on the Initial Date of Deposit is
as follows:
- Approximately 1/6 of the portfolio is composed of common stocks which
comprise The Dow(R) DART 5 Strategy;
- Approximately 1/6 of the portfolio is composed of common stocks which
comprise the European Target 20 Strategy;
- Approximately 1/6 of the portfolio is composed of common stocks which
comprise the Nasdaq(R) Target 15 Strategy;
- Approximately 1/6 of the portfolio is composed of common stocks which
comprise the S&P Target 24 Strategy;
- Approximately 1/6 of the portfolio is composed of common stocks which
comprise the Target Small-Cap Strategy; and
- Approximately 1/6 of the portfolio is composed of common stocks which
comprise the Value Line(R) Target 25 Strategy.
The Securities which comprise the S&P Target 24 Strategy and the Value Line(R)
Target 25 Strategy portions of the Trust were chosen by applying the same
selection criteria set forth above under the captions "S&P Target 24
Portfolio" and "Target Double Play Portfolio," respectively. The Securities
which comprise The Dow(R) DART 5 Strategy, the European Target 20 Strategy,
the Nasdaq(R) Target 15 Strategy and the Target Small-Cap Strategy portions of
the Trust were selected as follows:
The Dow(R) Dividend and Repurchase Target 5 Strategy.
The Dow(R) DART 5 Strategy selects a portfolio of DJIA(R) stocks with high
dividend yields and/or high buyback ratios and high return on assets, as a
means to achieving the Strategy's investment objective. Buyback ratio is the
ratio of a company's shares of common stock outstanding 12 months prior to the
date of this prospectus compared to a company's shares outstanding as of the
business day prior to the date of this prospectus.
The Dow(R) DART 5 Strategy stocks are determined as follows:
Step 1: We rank all 30 stocks contained in the DJIA(R) by the sum of their
current indicated dividend yield and buyback ratio as of the business day
prior to the date of this prospectus.
Step 2: We then select the 10 stocks with the highest combined dividend yields
and buyback ratios.
Step 3: From the 10 stocks selected in Step 2, we select an approximately
equally-weighted portfolio of the five stocks with the greatest change in
return on assets in the most recent year as compared to the previous year for
The Dow(R) DART 5 Strategy.
European Target 20 Strategy.
The European Target 20 Strategy invests in stocks with high dividend yields.
By selecting stocks with the highest dividend yields, the European Target 20
Strategy seeks to uncover stocks that may be out of favor or undervalued. The
European Target 20 Strategy stocks are determined as follows:
Step 1: We rank the 120 largest companies based on market capitalization which
are domiciled in Austria, Belgium, Denmark, Finland, France, Germany, Greece,
Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland
and the United Kingdom by their current indicated dividend yield as of two
business days prior to the date of this prospectus.
Step 2: We select an approximately equally-weighted portfolio of the 20
highest dividend-yielding stocks for the European Target 20 Strategy.
During the initial offering period, the Target VIP Portfolio will not invest
more than 5% of its portfolio in shares of any one securities-related issuer
contained in the European Target 20 Strategy.
Nasdaq(R) Target 15 Strategy.
The Nasdaq(R) Target 15 Strategy selects a portfolio of the 15 Nasdaq-100
Index(R) stocks with the best overall ranking on both 12- and 6-month price
appreciation, return on assets and price to cash flow as a means to achieving
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its investment objective. The Nasdaq(R) Target 15 Strategy stocks are
determined as follows:
Step 1: We select stocks which are components of the Nasdaq-100 Index(R) as of
two business days prior to the date of this prospectus and numerically rank
them by 12-month price appreciation (best [1] to worst [100]).
Step 2: We then numerically rank the stocks by 6-month price appreciation.
Step 3: The stocks are then numerically ranked by return on assets ratio.
Step 4: We then numerically rank the stocks by the ratio of cash flow per
share to stock price.
Step 5: We add up the numerical ranks achieved by each company in the above
steps and select the 15 stocks with the lowest sums for Nasdaq(R) Target 15
Strategy. In the event of a tie, the stock with the higher 6-month price
momentum is selected.
The stocks which comprise Nasdaq(R) Target 15 Strategy are weighted by market
capitalization subject to the restriction that only whole shares are purchased
and that no stock will comprise less than approximately 1% or 25% or more of
Nasdaq(R) Target 15 Strategy portion of the portfolio on the date of this
prospectus. The Securities will be adjusted on a proportionate basis to
accommodate this constraint.
Target Small-Cap Strategy.
The Target Small-Cap Strategy invests in stocks with small market
capitalizations which have recently exhibited certain positive financial
attributes. The Target Small-Cap Strategy stocks are determined as follows:
Step 1: We select the stocks of all U.S. companies which trade on the NYSE,
NYSE MTK (formerly the NYSE Amex) or The NASDAQ Stock Market, LLC(R)
(excluding limited partnerships, American Depositary Receipts/ADRs, business
development companies and mineral and oil royalty trusts) as of two business
days prior to the date of this prospectus.
Step 2: We then select companies which have a market capitalization of between
$150 million and $1 billion and whose stock has an average daily dollar
trading volume of at least $500,000.
Step 3: We next select stocks with positive three-year sales growth.
Step 4: From there we select those stocks whose most recent annual earnings
(based on the trailing 12-month period) are positive.
Step 5: We eliminate any stock whose price has appreciated by more than 75% in
the last 12 months.
Step 6: We select the 40 stocks with the greatest price appreciation in the
last 12 months and weight them on a market capitalization basis (highest to
lowest) for the Target Small-Cap Strategy.
For purposes of applying the Target Small-Cap Strategy, market capitalization
and average trading volume are based on 1996 dollars which are periodically
adjusted for inflation. All steps apply monthly and rolling quarterly data
instead of annual figures where possible.
The stocks which comprise the Target Small-Cap Strategy are weighted by market
capitalization.
Value Line(R) Target 25 Portfolio
The Securities which comprise the Value Line(R) Target 25 Strategy were chosen
by applying the same selection criteria set forth above under the caption
"Target Double Play Portfolio."
Other Considerations.
Please note that we applied the strategy or strategies which make up the
portfolio for each Trust at a particular time. If we create additional Units
of a Trust after the Initial Date of Deposit, we will deposit the Securities
originally selected by applying the strategy on the Initial Date of Deposit.
This is true even if a later application of a strategy would have resulted in
the selection of different securities. In addition, companies which, based on
publicly available information as of the date the Securities were selected,
are the subject of an announced business combination which we expect will
happen within 12 months of the date of this prospectus are not eligible for
inclusion in a Trust's portfolio.
The Securities for each of the strategies were selected as of a strategy's
selection date using closing market prices on such date or, if a particular
market was not open for trading on such date, closing market prices on the day
immediately prior to the strategy's selection date in which such market was
open. In addition, companies which, based on publicly available information on
or before their respective selection date, are subject to any of the limited
circumstances which warrant removal of a Security from a Trust as described
under "Removing Securities from a Trust" have been excluded from the universe
of securities from which each Trust's Securities are selected.
Additional Portfolio Contents.
In addition to the investments described above, certain of the Trusts have
exposure to the following investments: foreign-listed securities and companies
headquartered or incorporated in emerging markets.
Of course, as with any similar investments, there can be no assurance that the
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objective of a Trust will be achieved. See "Risk Factors" for a discussion of
the risks of investing in a Trust.
The Dow Jones Industrial Average, Dow Jones U.S. Select Dividend Index(sm),
S&P 500(R) Index, S&P 500(R) Dividend Aristocrats Index, S&P MidCap 400(R)
Index and S&P SmallCap 600(R) Index are products of S&P Dow Jones Indices LLC
or its affiliates ("SPDJI"), and have been licensed for use by First Trust
Portfolios L.P. Standard & Poor's(R), S&P(R), S&P 500(R), S&P Dividend
Aristocrats, S&P MidCap 400(R) and S&P SmallCap 600(R) are registered
trademarks of Standard & Poor's Financial Services LLC ("S&P"); DJIA(R), The
Dow(R), Dow Jones(R), Dow Jones Industrial Average and Dow Jones U.S. Select
Dividend Index(sm) are trademarks of Dow Jones Trademark Holdings LLC ("Dow
Jones"); and these trademarks have been licensed for use by SPDJI and
sublicensed for certain purposes by First Trust Portfolios L.P. The Trusts, in
particular The Dow(R) Target 5 Portfolio, The Dow(R) Target Dividend
Portfolio, S&P Dividend Aristocrats Target 25 Portfolio, S&P Target 24 Portfolio,
S&P Target SMid 60 Portfolio, Target Double Play Portfolio, Target Focus Four
Portfolio and the Target VIP Portfolio are not sponsored, endorsed, sold or
promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of
such parties make any representation regarding the advisability of investing
in such products nor do they have any liability for any errors, omissions, or
interruptions of the Dow Jones Industrial Average and the S&P 500(R) Index.
Please see the Information Supplement which sets forth certain additional
disclaimers and limitations of liabilities on behalf of SPDJI.
"Value Line," "The Value Line Investment Survey" and "Timeliness" are
trademarks or registered trademarks of Value Line, Inc. and/or its affiliates
("Value Line") that have been licensed to First Trust Portfolios L.P. and/or
First Trust Advisors L.P. The Target Double Play Portfolio, Target Focus Four
Portfolio, Target VIP Portfolio and Value Line(R) Target 25 Portfolio are not
sponsored, endorsed, recommended, sold or promoted by Value Line. Value Line
makes no representation regarding the advisability of investing in a Trust.
First Trust Portfolios L.P. and/or First Trust Advisors L.P. are not
affiliated with any Value Line company.
"NYSE(R)" is a service/trade mark of ICE Data Indices, LLC or its affiliates
and has been licensed, along with the NYSE(R) International 100 Index
("Index") for use by First Trust Portfolios L.P. in connection with the Target
Focus Four Portfolio and the Target Triad Portfolio (the "Products"). Neither
First Trust Portfolios L.P. nor the Products, as applicable, is sponsored,
endorsed, sold or promoted by ICE Data Indices, LLC, its affiliates or its
Third Party Suppliers ("ICE Data and its Suppliers"). ICE Data and its
Suppliers make no representations or warranties regarding the advisability of
investing in securities generally, in the Products particularly, or the
ability of the Index to track general market performance. Past performance of
an Index is not an indicator of or a guarantee of future results. ICE DATA AND
ITS SUPPLIERS DISCLAIM ANY AND ALL WARRANTIES AND REPRESENTATIONS, EXPRESS
AND/OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR USE, INCLUDING THE INDICES, INDEX DATA AND ANY
INFORMATION INCLUDED IN, RELATED TO, OR DERIVED THEREFROM ("INDEX DATA"). ICE
DATA AND ITS SUPPLIERS SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY WITH
RESPECT TO THE ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDICES
AND THE INDEX DATA, WHICH ARE PROVIDED ON AN "AS IS" BASIS AND YOUR USE IS AT
YOUR OWN RISK.
The publishers of the DJIA(R), the Dow Jones U.S. Select Dividend Index(sm),
The Nasdaq-100 Index(R), the Russell 3000(R) Index, S&P 500(R) Index, S&P
1000(R) Index, S&P MidCap 400(R) Index, S&P SmallCap 600(R) Index and the
NYSE International 100 Index(sm) are not affiliated with us and have not
participated in creating the Trusts or selecting the Securities for the
Trusts. Except as noted herein, none of the index publishers have approved of
any of the information in this prospectus.
Risk Factors
Price Volatility. The Trusts invest in common stocks. The value of a Trust's
Units will fluctuate with changes in the value of these common stocks. Common
stock prices fluctuate for several reasons including changes in investors'
perceptions of the financial condition of an issuer or the general condition
of the relevant stock market, such as the current market volatility, or when
political or economic events affecting the issuers occur. In addition, common
stock prices may be particularly sensitive to rising interest rates, as the
cost of capital rises and borrowing costs increase.
Because the Trusts are not managed, the Trustee will not sell stocks in
response to or in anticipation of market fluctuations, as is common in managed
investments. As with any investment, we cannot guarantee that the performance
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of any Trust will be positive over any period of time, especially the
relatively short 15-month life of the Trusts, or that you won't lose money.
Units of the Trusts are not deposits of any bank and are not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Two of the Securities in the S&P Target 24 Portfolio and three of the
Securities in the Value Line(R) Target 25 Portfolio represent approximately
33.36% and 50.31%, respectively, of the value of each Trust. If these stocks
decline in value you may lose a substantial portion of your investment.
Market Risk. Market risk is the risk that a particular security, or Units of
the Trusts in general, may fall in value. Securities are subject to market
fluctuations caused by such factors as economic, political, regulatory or
market developments, changes in interest rates and perceived trends in
securities prices. Units of the Trusts could decline in value or underperform
other investments. In addition, local, regional or global events such as war,
acts of terrorism, spread of infectious diseases or other public health
issues, recessions, or other events could have a significant negative impact
on the Trusts and their investments. Such events may affect certain geographic
regions, countries, sectors and industries more significantly than others.
Such events could adversely affect the prices and liquidity of the Trusts'
portfolio securities and could result in disruptions in the trading markets.
Any such circumstances could have a materially negative impact on the value of
the Trusts' Units and result in increased market volatility.
The recent outbreak of a respiratory disease designated as COVID-19 was first
detected in China in December 2019. The global economic impact of the COVID-19
outbreak is impossible to predict but has resulted in disruptions to
manufacturing, supply chains and sales in affected areas and negatively
impacted global economic growth prospects. The COVID-19 outbreak has also
caused significant volatility and declines in global financial markets, which
have caused losses for investors. The impact of the COVID-19 outbreak may be
short term or may last for an extended period of time, and in either case
could result in a substantial economic downturn or recession.
Government interventions aimed at curtailing the distress to financial markets
caused by the COVID-19 outbreak such as the Federal Reserve's $700 billion
quantitative easing program announced in March 2020, coupled with reducing the
Federal funds rate to near-zero, may not work as intended and may result in
increased volatility in financial markets. Quantitative easing refers to
purchasing large quantities of securities issued or guaranteed by the U.S.
government, its agencies or instrumentalities on the open market. The impact
of government interventions on the markets, and the practical implications for
market participants, may not be fully known for some time.
Dividends. Certain of the Securities held by the Trusts may currently pay
dividends, but there is no guarantee that the issuers of the Securities will
declare dividends in the future or that, if declared, they will either remain
at current levels or increase over time.
Trusts which use dividend yield as a selection criterion employ a contrarian
strategy in which the Securities selected share qualities that have caused
them to have lower share prices or higher dividend yields than other common
stocks in their peer group. There is no assurance that negative factors
affecting the share price or dividend yield of these Securities will be
overcome over the life of such Trusts or that these Securities will increase
in value.
Concentration Risk. When at least 25% of a trust's portfolio is invested in
securities issued by companies within a single sector, the trust is considered
to be concentrated in that particular sector. If a Trust is concentrated in
more than one sector, at least 25% of the Trust's portfolio is invested in
each sector in which it is concentrated. A portfolio concentrated in one or
more sectors may present more risks than a portfolio broadly diversified over
several sectors.
The Dow(R) Target 5 Portfolio is concentrated in stocks of the industry or
group of industries comprising the consumer staples sector. The Dow(R) Target
Dividend Portfolio is concentrated in stocks of the industry or group of
industries comprising the financials and utilities sectors. The S&P Dividend
Aristocrats Target 25 Portfolio is concentrated in stocks of the industry or
group of industries comprising the industrials sector. The S&P Target 24
Portfolio, the Target VIP Portfolio and the Value Line(R) Target 25 Portfolio
are concentrated in stocks of the industry or group of industries comprising
the information technology sector. The S&P Target SMid 60 Portfolio and the
Target Focus Four Portfolio are concentrated in stocks of the industry or
group of industries comprising the financials sector. The Target Double Play
Portfolio is concentrated in stocks of the industry or group of industries
comprising the financials and information technology sectors.
Consumer Staples. Consumer staples companies provide products directly to the
consumer that are typically considered non-discretionary items based on
consumer purchasing habits. Such products include food, beverages, household
items and tobacco. Companies providing these products may be affected by the
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regulation of various product components and production methods, new laws,
regulations or litigation, marketing campaigns, competitive pricing,
enumerated factors, consumer confidence, materials costs and other factors
affecting consumer demand. Changes in the worldwide economy, demographics,
consumer preferences, consumer spending, exploration and production spending
may adversely affect these companies, as well as natural and man-made
disasters, political, social or labor unrest, world events and economic
conditions. Historically, the demand for consumer staples goods has remained
fairly constant regardless of the state of the economy. With some products,
such as food, alcohol and tobacco, demand sometimes increases during economic
downturns. However, price competition among suppliers may be very challenging,
which can drive prices lower and impact returns.
Financials. Financial companies, such as retail and commercial banks,
insurance companies and financial services companies, are subject to extensive
governmental regulation and intervention, which may adversely affect the scope
of their activities, the prices they can charge, the amount and types of
capital they must maintain and, potentially, their size. Governmental
regulation may change frequently and may have significant adverse consequences
for financial companies, including effects not intended by such regulation.
The impact of more stringent capital requirements, or recent or future
regulation in various countries, on any individual financial company or on
financial companies as a whole cannot be predicted. Certain risks may impact
the value of investments in financial companies more severely than those of
investments in other issuers, including the risks associated with companies
that operate with substantial financial leverage. Financial companies may also
be adversely affected by volatility in interest rates, decreases in the
availability of money or asset valuations, credit rating downgrades and
adverse conditions in other related markets. Insurance companies in particular
may be subject to severe price competition and/or rate regulation, which may
have an adverse impact on their profitability. Financial companies are also a
target for cyber-attacks and may experience technology malfunctions and
disruptions as a result.
In addition, general economic conditions are important to the operations of
financial companies. Credit losses resulting from financial difficulties of
borrowers and financial losses associated with investment activities may have
an adverse effect on the profitability of financial companies. While financial
companies such as banks tend to increase reserves in anticipation of economic
stress, there can be no assurance that such reserves will be sufficient to
cover rising default rates. Financial companies may be highly dependent upon
access to capital markets, and any impediments to such access, such as adverse
overall economic conditions or a negative perception in the capital markets of
a company's financial condition or prospects, could adversely affect its
business. Some financial companies may also be required to accept or borrow
significant amounts of capital from government sources. There is no guarantee
that governments will provide any such relief in the future. These actions may
cause the securities of many companies in the financials sector to decline in
value.
Industrials. General risks of industrial companies include the general state
of the economy, intense competition, consolidation, domestic and international
politics, excess capacity and consumer spending trends. In addition, they may
also be significantly affected by overall capital spending levels, economic
cycles, technical obsolescence, delays in modernization, labor relations,
government regulations and e-commerce initiatives.
Industrial companies may also be affected by factors more specific to their
individual industries. Industrial machinery manufacturers may be subject to
declines in consumer demand and the need for modernization. Aerospace and
defense companies may be influenced by decreased demand for new equipment,
aircraft order cancellations, changes in aircraft-leasing contracts and
cutbacks in profitable business travel. Agricultural equipment businesses may
be influenced by fluctuations in farm income, farm commodity prices,
government subsidies and weather conditions. The number of housing starts,
levels of public and non-residential construction including weakening demand
for new office and retail space, and overall construction spending may
adversely affect construction equipment manufacturers, while overproduction,
consolidation and weakening global economies may lead to deteriorating sales
for auto and truck makers and their suppliers.
Information Technology. Technology companies are generally subject to the
risks of rapidly changing technologies; short product life cycles; fierce
competition; aggressive pricing; frequent introduction of new or enhanced
products; the loss of patent, copyright and trademark protections; cyclical
market patterns; evolving industry standards; and frequent new product
introductions. Technology companies may be smaller and less experienced
companies, with limited product lines, markets or financial resources.
Technology company stocks have experienced extreme price and volume
fluctuations that are often unrelated to their operating performance. Also,
the stocks of many Internet companies have exceptionally high price-to-
earnings ratios with little or no earnings histories.
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Utilities. General problems of utility companies include risks of increases in
fuel and other operating costs; restrictions on operations and increased costs
and delays as a result of environmental, nuclear safety and other regulations;
regulatory restrictions on the ability to pass increasing wholesale costs
along to the retail and business customer; energy conservation; technological
innovations which may render existing plants, equipment or products obsolete;
the effects of local weather, maturing markets and difficulty in expanding to
new markets due to regulatory and other factors; natural or man-made
disasters; difficulty obtaining adequate returns on invested capital; the high
cost of obtaining financing during periods of inflation; difficulties of the
capital markets in absorbing utility debt and equity securities; and increased
competition. In addition, taxes, government regulation, international
politics, price and supply fluctuations, and volatile interest rates and
energy conservation may cause difficulties for utilities. All of such issuers
have been experiencing certain of these problems in varying degrees.
Utility companies are subject to extensive regulation at the federal and state
levels in the United States. The value of utility company securities may
decline as a result of changes to governmental regulation controlling the
utilities sector. Adverse regulatory changes could prevent or delay utilities
from passing along cost increases to customers, which could hinder a utility's
ability to meet its obligations to its suppliers.
Furthermore, regulatory authorities, which may be subject to political and
other pressures, may not grant future rate increases, or may impose accounting
or operational policies, any of which could affect a company's profitability
and the value of its securities. In addition, federal, state and municipal
governmental authorities may review existing, and impose additional,
regulations governing the licensing, construction and operation of nuclear
power plants.
REITs. Certain of the Securities in the S&P Target SMid 60 Portfolio, the
Target Focus Four Portfolio and the Target Global Dividend Leaders Portfolio
are issued by REITs that are headquartered or incorporated in the United
States. REITs are financial vehicles that pool investors' capital to purchase
or finance real estate. REITs may concentrate their investments in specific
geographic areas or in specific property types, i.e., hotels, shopping malls,
residential complexes, office buildings and timberlands. The value of REITs
and the ability of REITs to distribute income may be adversely affected by
several factors, including rising interest rates, changes in the national,
state and local economic climate and real estate conditions, perceptions of
prospective tenants of the safety, convenience and attractiveness of the
properties, the ability of the owner to provide adequate management,
maintenance and insurance, the cost of complying with the Americans with
Disabilities Act, increased competition from new properties, the impact of
present or future environmental legislation and compliance with environmental
laws, changes in real estate taxes and other operating expenses, adverse
changes in governmental rules and fiscal policies, adverse changes in zoning
laws, and other factors beyond the control of the issuers of REITs. Certain of
the REITs may also be mortgage real estate investment trusts ("Mortgage
REITs"). Mortgage REITs are companies that provide financing for real estate
by purchasing or originating mortgages and mortgage-backed securities and earn
income from the interest on these investments. Mortgage REITs are also subject
to many of the same risks associated with investments in other REITs and to
real estate market conditions.
Strategy. Please note that we applied the strategy or strategies which make up
the portfolio for each Trust at a particular time. If we create additional
Units of a Trust after the Initial Date of Deposit, we will deposit the
Securities originally selected by applying the strategy on the Initial Date of
Deposit. This is true even if a later application of a strategy would have
resulted in the selection of different securities. There is no guarantee the
investment objective of a Trust will be achieved. The actual performance of
the Trusts will be different than the hypothetical returns of each Trust's
strategy. No representation is made that the Trusts will or are likely to
achieve the hypothetical performance shown. Because the Trusts are unmanaged
and follow a strategy, the Trustee will not buy or sell Securities in the
event a strategy is not achieving the desired results.
Foreign Securities. Certain of the Securities held by certain of the Trusts
are issued by foreign entities, which makes the Trusts subject to more risks
than if they invested solely in domestic securities. A foreign Security held
by a Trust is either directly listed on a U.S. securities exchange, is in the
form of an American Depositary Receipt/ADR which trades on the over-the-
counter market or is listed on a U.S. securities exchange, or is directly
listed on a foreign securities exchange. Risks of foreign securities include
higher brokerage costs; different accounting standards; expropriation,
nationalization or other adverse political or economic developments; currency
devaluations, blockages or transfer restrictions; restrictions on foreign
investments and exchange of securities; inadequate financial information; lack
of liquidity of certain foreign markets; and less government supervision and
Page 57
regulation of exchanges, brokers, and issuers in foreign countries. Certain
foreign markets have experienced heightened volatility due to recent negative
political or economic developments or natural disasters. Securities issued by
non-U.S. issuers may pay interest and/or dividends in foreign currencies and
may be principally traded in foreign currencies. Therefore, there is a risk
that the U.S. dollar value of these interest and/or dividend payments and/or
securities will vary with fluctuations in foreign exchange rates. Investments
in debt securities of foreign governments present special risks, including the
fact that issuers may be unable or unwilling to repay principal and/or
interest when due in accordance with the terms of such debt, or may be unable
to make such repayments when due in the currency required under the terms of
the debt. Political, economic and social events also may have a greater impact
on the price of debt securities issued by foreign governments than on the
price of U.S. securities.
American Depositary Receipts/ADRs and similarly structured securities may be
less liquid than the underlying shares in their primary trading market. Any
distributions paid to the holders of depositary receipts are usually subject
to a fee charged by the depositary. Issuers of depositary receipts are not
obligated to disclose information that is considered material in the United
States. As a result, there may be less information available regarding such
issuers. Holders of depositary receipts may have limited voting rights, and
investment restrictions in certain countries may adversely impact the value of
depositary receipts because such restrictions may limit the ability to convert
shares into depositary receipts and vice versa. Such restrictions may cause
shares of the underlying issuer to trade at a discount or premium to the
market price of the depositary receipts.
The purchase and sale of the foreign Securities, other than foreign Securities
listed on a U.S. securities exchange, will generally occur only in foreign
securities markets. Because foreign securities exchanges may be open on
different days than the days during which investors may purchase or redeem
Units, the value of a Trust's Securities may change on days when investors are
not able to purchase or redeem Units. Although we do not believe that the
Trusts will have problems buying and selling these Securities, certain of the
factors stated above may make it impossible to buy or sell them in a timely
manner. Custody of certain of the Securities in the Target VIP Portfolio is
maintained by: Crest Co. Ltd. for United Kingdom Securities and Euroclear
Bank, a global custody and clearing institution for all other foreign
Securities; each of which has entered into a sub-custodian relationship with
the Trustee. In the event the Trustee informs the Sponsor of any material
change in the custody risks associated with maintaining assets with any of the
entities listed above, the Sponsor will instruct the Trustee to take such
action as the Sponsor deems appropriate to minimize such risk.
Emerging Markets. Certain of the Securities held by certain of the Trusts are
issued by companies headquartered or incorporated in countries considered to be
emerging markets. Risks of investing in developing or emerging countries are
even greater than the risks associated with foreign investments in general.
These increased risks include, among other risks, the possibility of investment
and trading limitations, greater liquidity concerns, higher price volatility,
greater delays and disruptions in settlement transactions, greater political
uncertainties and greater dependence on international trade or development
assistance. In addition, less information about emerging market companies is
publicly available due to differences in regulatory, accounting, audit and
financial record keeping standards and information that is available may be
unreliable or outdated. Moreover, emerging market countries may be subject to
overburdened infrastructures, obsolete financial systems and environmental
problems. For these reasons, investments in emerging markets are often
considered speculative.
Exchange Rates. Because securities of foreign issuers not listed on a U.S.
securities exchange generally pay dividends and trade in foreign currencies,
the U.S. dollar value of these Securities (and therefore Units of the Trusts
containing securities of foreign issuers) will vary with fluctuations in
foreign exchange rates. As the value of Units of a Trust will vary with
fluctuations in both the value of the underlying Securities as well as foreign
exchange rates, an increase in the value of the Securities could be more than
offset by a decrease in value of the foreign currencies in which they are
denominated against the U.S. dollar, resulting in a decrease in value of the
Units. Most foreign currencies have fluctuated widely in value against the
U.S. dollar for various economic and political reasons.
To determine the value of foreign Securities not listed on a U.S. securities
exchange or their dividends, the Evaluator will estimate current exchange
rates for the relevant currencies based on activity in the various currency
exchange markets. However, these markets can be quite volatile, depending on
the activity of the large international commercial banks, various central
banks, large multi-national corporations, speculators, hedge funds and other
buyers and sellers of foreign currencies. Since actual foreign currency
transactions may not be instantly reported, the exchange rates estimated by
the Evaluator may not reflect the amount the Trusts would receive, in U.S.
dollars, had the Trustee sold any particular currency in the market. The value
of the Securities in terms of U.S. dollars, and therefore the value of your
Units, will decline if the U.S. dollar increases in value relative to the
value of the currency in which the Securities trade. In addition, the value of
dividends received in foreign currencies will decline in value in terms of
U.S. dollars if the U.S. dollar increases in value relative to the value of
the currency in which the dividend was paid prior to the time in which the
dividend is converted to U.S. dollars.
Small and/or Mid Capitalization Companies. Certain of the Securities held by
certain of the Trusts are issued by small and/or mid capitalization companies.
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Investing in stocks of such companies may involve greater risk than investing
in larger companies. For example, such companies may have limited product
lines, as well as shorter operating histories, less experienced management and
more limited financial resources than larger companies. Securities of such
companies generally trade in lower volumes and are generally subject to
greater and less predictable changes in price than securities of larger
companies. In addition, small and mid-cap stocks may not be widely followed by
the investment community, which may result in low demand.
Large Capitalization Companies. Certain of the Securities held by certain of
the Trusts are issued by large capitalization companies. The return on
investment in stocks of large capitalization companies may be less than the
return on investment in stocks of small and/or mid capitalization companies.
Large capitalization companies may also grow at a slower rate than the overall
market.
Cybersecurity Risk. As the use of Internet technology has become more
prevalent in the course of business, the Trusts have become more susceptible
to potential operational risks through breaches in cybersecurity. A breach in
cybersecurity refers to both intentional and unintentional events that may
cause a Trust to lose proprietary information, suffer data corruption or lose
operational capacity. Such events could cause the Sponsor of the Trusts to
incur regulatory penalties, reputational damage, additional compliance costs
associated with corrective measures and/or financial loss. Cybersecurity
breaches may involve unauthorized access to digital information systems
utilized by the Trusts through "hacking" or malicious software coding, but may
also result from outside attacks such as denial-of-service attacks through
efforts to make network services unavailable to intended users. In addition,
cybersecurity breaches of a Trust's third-party service providers, or issuers
in which the Trusts invest, can also subject the Trusts to many of the same
risks associated with direct cybersecurity breaches. The Sponsor of, and third-
party service provider to, the Trusts have established risk management systems
designed to reduce the risks associated with cybersecurity. However, there is
no guarantee that such efforts will succeed, especially because the Trusts do
not directly control the cybersecurity systems of issuers or third-party
service providers.
Legislation/Litigation. From time to time, various legislative initiatives are
proposed in the United States and abroad which may have a negative impact on
certain of the companies represented in the Trusts. In addition, litigation
regarding any of the issuers of the Securities, or the industries represented
by these issuers, may negatively impact the value of these Securities. We
cannot predict what impact any pending or proposed legislation or pending or
threatened litigation will have on the value of the Securities.
Backtested Hypothetical Performance Information
The following tables compare the hypothetical performance information for the
identical strategies employed by each Trust and the actual performances of the
DJIA(R), the Dow Jones U.S. Select Dividend Index(sm), Russell 3000(R) Index,
S&P 500(R) Index, S&P 1000(R) Index and the MSCI All Country World Index in
each of the full years listed below (and as of the most recent month). The
Trusts did not achieve the performance shown.
These hypothetical returns should not be used to predict or guarantee future
performance of the Trusts. Returns from a Trust will differ from its strategy
for several reasons, including the following:
- Total Return figures shown do not reflect commissions paid by a Trust on the
purchase of Securities or taxes incurred by you.
- Strategy returns are for calendar years (and through the most recent month),
while the Trusts begin and end on various dates.
- Trusts have a maturity longer than one year.
- Trusts may not be fully invested at all times or equally-weighted in each of
the strategies or the stocks comprising their respective strategy or strategies.
- Extraordinary market events that are not expected to be repeated and which
may have affected performance.
- Securities are often purchased or sold at prices different from the closing
prices used in buying and selling Units.
- Cash flows (receipt/investment of).
- For Trusts investing in foreign Securities, currency exchange rates may
differ.
You should note that the Trusts are not designed to parallel movements in any
index and it is not expected that they will do so. In fact, each Trust's
strategy underperformed its comparative index, or combination thereof, in
certain years and we cannot guarantee that a Trust will outperform its
respective index over the life of a Trust or over consecutive rollover
periods, if available. Each index differs widely in size and focus, as
described below.
Page 59
DJIA(R). The Dow Jones Industrial Average is a price-weighted measure of 30
U.S. blue-chip companies. The index covers all industries with the exception
of transportation and utilities. While stock selection is not governed by
quantitative rules, a stock typically is added to the index only if the
company has an excellent reputation, demonstrates sustained growth and is of
interest to a large number of investors.
Dow Jones U.S. Select Dividend Index(sm). The Dow Jones U.S. Select Dividend
Index(sm) consists of 100 dividend-paying stocks, weighted by their indicated
annualized yield. Eligible stocks are selected from a universe of all dividend-
paying companies in the Dow Jones U.S. Total Market Index(sm) that have a non-
negative historical five-year dividend-per-share growth rate, a five-year
average dividend to earnings-per-share ratio of less than or equal to 60% and
a three-month average daily trading volume of 200,000 shares.
Russell 3000(R) Index. The Russell 3000(R) Index offers investors access to
the broad U.S. equity universe representing approximately 98% of the U.S.
market. The Russell 3000(R) Index is constructed to provide a comprehensive,
unbiased and stable barometer of the broad market and is completely
reconstituted annually to ensure new and growing equities are reflected.
S&P 500(R) Index. The S&P 500(R) Index consists of stocks of 500 issuers
chosen by Standard and Poor's to be representative of the leaders of various
industries.
S&P 1000(R) Index. The S&P 1000(R) Index is a combination of the S&P MidCap
400(R) (the most widely used index for mid-size companies) and the S&P
SmallCap 600(R) (an index of 600 U.S. small-cap companies), where the S&P
MidCap 400(R) represents approximately 70% of the index and S&P SmallCap 600
represents approximately 30% of the index).
MSCI All Country World Index. The MSCI All Country World Index is an unmanaged
free float-adjusted market capitalization weighted index designed to measure
the equity market performance of developed and emerging markets. The index
cannot be purchased directly by investors.
The indexes are unmanaged, not subject to fees and not available for direct
investment.
Page 60
COMPARISON OF HYPOTHETICAL TOTAL RETURN(2)
(Strategy figures reflect the deduction of sales charges and expenses but not brokerage commissions or taxes.)
Hypothetical Strategy Total Returns(1)(3)
-----------------------------------------------------------------------------------------------------------------
S&P Dividend Target
The Dow(R) The Dow(R) Aristocrats S&P S&P Target Diversified
Target 5 Target Dividend Target 25 Target 24 SMid 60 Dividend
Year Strategy Strategy Strategy Strategy Strategy Strategy
---- ---------- --------------- ------------ --------- ----------- -------------
1972 20.20%
1973 17.63%
1974 -7.48%
1975 62.91%
1976 38.88%
1977 3.22%
1978 -1.26%
1979 7.43%
1980 38.74%
1981 1.27%
1982 41.05%
1983 34.26%
1984 8.60%
1985 36.01%
1986 28.31% 19.58%
1987 8.50% 1.95%
1988 18.95% 4.53%
1989 8.01% 22.58%
1990 -17.90% 6.68%
1991 59.82% 40.60%
1992 20.67% 30.13% -1.56%
1993 31.43% 18.32% 8.28%
1994 5.47% -8.43% 5.04%
1995 28.07% 47.02% 39.23% 25.41% 28.24%
1996 23.51% 16.25% 31.52% 13.27% 15.04%
1997 17.17% 40.73% 30.32% 42.16% 26.05%
1998 9.94% 3.06% 40.07% 4.91% 13.02%
1999 -9.43% -6.53% 41.39% 23.94% 17.62%
2000 8.32% 25.98% 6.79% 4.07% 14.12% 19.90%
2001 -4.97% 40.77% 15.99% -10.82% 32.08% 29.70%
2002 -12.82% -0.73% -10.24% -19.04% -5.25% -10.35%
2003 20.24% 32.25% 19.69% 23.38% 45.44% 47.17%
2004 9.67% 19.00% 17.13% 13.79% 23.57% 20.60%
2005 -2.93% 2.37% 3.58% 3.87% 3.13% 2.03%
2006 38.81% 17.72% 17.95% 1.65% 19.74% 15.48%
2007 1.70% 1.18% 5.19% 3.40% -9.62% -3.80%
2008 -50.36% -39.47% -22.25% -29.23% -37.64% -37.02%
2009 17.35% 14.47% 21.66% 12.32% 60.05% 40.92%
2010 10.18% 15.82% 16.85% 18.36% 15.12% 20.27%
2011 16.96% 5.68% 8.39% 7.12% -8.79% 3.20%
2012 9.34% 5.03% 12.41% 8.18% 20.43% 10.82%
2013 38.48% 28.84% 33.38% 42.52% 37.45% 31.68%
2014 11.53% 12.95% 11.50% 7.25% -0.24% 5.24%
2015 7.77% -5.94% -2.92% 2.24% -8.87% -12.98%
2016 11.69% 23.14% 13.28% 0.82% 30.81% 15.93%
2017 10.13% 7.17% 16.59% 19.53% -0.05% 6.69%
2018 -1.85% -11.26% -9.11% -1.27% -23.72% -12.31%
2019 7.28% 9.08% 28.52% 34.11% 3.23% 26.08%
2020 -17.49% -32.60% -8.60% 14.36% -43.47% -22.70%
(thru 9/30)
Page 61
COMPARISON OF HYPOTHETICAL TOTAL RETURN(2)
(Strategy figures reflect the deduction of sales charges and expenses but not brokerage commissions or taxes.)
Hypothetical Strategy Total Returns(1)(3)
-----------------------------------------------------------------------------------------------------------------
Target Target Global
Target Focus Dividend Target Target Target Value Line(R)
Double Play Four Leaders Growth Triad VIP Target 25
Year Strategy Strategy Strategy Strategy Strategy Strategy Strategy
---- ----------- -------- ------------- -------- -------- -------- -------------
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985 33.34%
1986 20.24%
1987 16.95%
1988 -9.37%
1989 48.20%
1990 0.26% 3.16%
1991 57.24% 83.80%
1992 13.52% 4.25% -2.61%
1993 21.60% 22.21% 25.07%
1994 1.86% 2.20% 12.20%
1995 49.45% 31.07% 43.06% 52.21%
1996 35.29% 27.80% 25.11% 22.18% 38.83% 54.24%
1997 37.11% 37.21% 41.28% 34.79% 25.97% 33.92%
1998 47.21% 30.98% 2.74% 37.29% 27.49% 51.40% 91.05%
1999 52.88% 45.08% 12.55% 33.92% 31.90% 48.97% 111.29%
2000 7.16% 9.64% 4.78% 8.49% 11.93% -4.40% -10.37%
2001 20.11% 20.17% 7.07% -4.08% 4.91% -11.17% -0.08%
2002 -12.47% -11.09% -7.47% -10.69% -11.60% -21.22% -23.88%
2003 35.64% 38.81% 48.27% 34.15% 38.31% 34.92% 39.35%
2004 20.40% 21.58% 24.67% 16.85% 18.53% 13.18% 21.82%
2005 11.02% 8.88% 11.76% 17.24% 12.30% 6.89% 19.74%
2006 9.05% 14.20% 29.65% 16.96% 17.57% 11.99% 0.71%
2007 12.35% 6.97% 22.27% 20.07% 13.38% 9.38% 23.59%
2008 -45.55% -43.38% -30.07% -52.45% -47.53% -45.83% -51.41%
2009 8.54% 27.29% 53.49% 18.35% 27.22% 12.18% 3.16%
2010 22.21% 17.86% 20.29% 17.28% 16.37% 18.42% 28.63%
2011 -12.10% -11.60% 0.43% -12.43% -8.35% -1.94% -29.25%
2012 9.54% 12.67% 12.84% 5.89% 7.51% 12.36% 14.23%
2013 31.31% 31.40% 25.34% 37.28% 33.22% 36.29% 34.01%
2014 11.33% 5.80% 3.21% 6.42% 4.52% 6.26% 9.99%
2015 -7.79% -8.46% -12.30% 8.35% -0.02% -4.34% -9.41%
2016 14.08% 18.89% 14.99% -1.75% 4.81% 8.38% 5.35%
2017 7.25% 5.69% 7.47% 35.43% 24.59% 20.05% 7.54%
2018 -7.71% -13.11% -13.10% -17.93% -15.93% -7.45% -3.98%
2019 8.79% 7.31% 14.59% 33.41% 28.90% 19.00% 8.69%
2020 -8.96% -21.76% -23.71% 7.41% -5.73% -4.36% 14.72%
(thru 9/30)
Page 62
COMPARISON OF HYPOTHETICAL TOTAL RETURN(2)
Index Total Returns(3)
Dow Jones U.S. Russell MSCI All
Select Dividend S&P 500(R) S&P 1000(R) 3000(R) Country World
Year DJIA(R) Index(sm) Index Index Index Index
---- ------- ----------- ------- -------- ------- -------------
1972 18.48% 19.00%
1973 -13.28% -14.69%
1974 -23.58% -26.47%
1975 44.75% 37.23%
1976 22.82% 23.93%
1977 -12.84% -7.16%
1978 2.79% 6.57%
1979 10.55% 18.61%
1980 22.17% 32.50%
1981 -3.57% -4.92%
1982 27.11% 21.55%
1983 25.97% 22.56%
1984 1.31% 6.27%
1985 33.55% 31.72%
1986 27.10% 18.67%
1987 5.48% 5.25%
1988 16.14% 16.56%
1989 32.19% 31.62%
1990 -0.56% -3.19%
1991 24.19% 30.33%
1992 7.41% 22.65% 7.61%
1993 16.93% 14.59% 10.04%
1994 5.01% -0.19% 1.30%
1995 36.87% 42.80% 37.50% 30.69% 36.57%
1996 28.89% 25.08% 22.89% 19.85% 21.63%
1997 24.94% 37.83% 33.31% 30.26% 31.67%
1998 18.15% 4.33% 28.55% 13.20% 24.11% 21.97%
1999 27.21% -4.08% 21.03% 14.11% 20.96% 26.82%
2000 -4.71% 24.86% -9.10% 15.86% -7.30% -13.94%
2001 -5.43% 13.09% -11.88% 1.45% -11.43% -15.91%
2002 -14.97% -3.94% -22.09% -14.54% -21.53% -18.98%
2003 28.23% 30.16% 28.65% 36.61% 31.02% 34.63%
2004 5.30% 18.14% 10.87% 18.39% 11.93% 15.75%
2005 1.72% 3.79% 4.90% 10.93% 6.10% 11.37%
2006 19.03% 19.54% 15.76% 11.89% 15.67% 21.53%
2007 8.87% -5.16% 5.56% 5.18% 5.16% 12.18%
2008 -31.92% -30.97% -36.99% -34.67% -37.32% -41.85%
2009 22.70% 11.13% 26.46% 33.48% 28.29% 35.41%
2010 14.10% 18.32% 15.08% 26.55% 16.93% 13.21%
2011 8.34% 12.42% 2.08% -0.92% 1.00% -6.86%
2012 10.23% 10.84% 15.98% 17.40% 16.41% 16.80%
2013 29.63% 29.06% 32.36% 35.87% 33.55% 23.44%
2014 10.02% 15.36% 13.66% 8.54% 12.53% 4.71%
2015 0.23% -1.64% 1.38% -2.11% 0.48% -1.84%
2016 16.46% 21.98% 11.93% 22.49% 12.70% 8.48%
2017 28.07% 15.44% 21.80% 15.33% 21.10% 24.62%
2018 -3.48% -5.94% -4.39% -10.30% -5.24% -8.93%
2019 25.32% 23.11% 31.45% 25.14% 30.99% 27.30%
2020 -0.88% -19.86% 5.57% -10.59% 5.41% 1.77%
(thru 9/30)
______________________
See "Notes to Comparison of Hypothetical Total Return" on page 64.
Page 63
NOTES TO COMPARISON OF HYPOTHETICAL TOTAL RETURN
(1) The Strategy stocks for each Strategy for a given year consist of the
common stocks selected by applying the respective Strategy as of the beginning
of the period (and not the date the Trusts actually sell Units).
(2) Hypothetical Total Return represents the sum of the change in market value
of each group of stocks between the first and last trading day of a period
plus the total dividends paid on each group of stocks during such period
divided by the opening market value of each group of stocks as of the first
trading day of a period. Hypothetical Total Return figures assume that all
dividends are reinvested in the same manner as the corresponding Trust
(monthly or semi-annually) for the hypothetical Strategy returns and monthly
in the case of Index returns (except for the S&P 1000(R) Index, which assumes
daily reinvestment of dividends) and all returns are stated in terms of U.S.
dollars. Hypothetical Strategy figures reflect the deduction of sales charges
and expenses as listed in the "Fee Table," but have not been reduced by
estimated brokerage commissions paid by Trusts in acquiring Securities or any
taxes incurred by investors. If a security which is selected by a Strategy is
merged out of existence, delisted or suffers a similar fate during the period
in which such hypothetical Strategy performance is being measured, such
security will not be replaced by another security during that period and the
return of such security will not be annualized in the calculation of the
hypothetical returns. Based on the year-by-year hypothetical returns contained
in the above tables, over the full years as listed above, with the exception
of The Dow(R) Target Dividend Strategy and the S&P Target SMid 60 Strategy,
each hypothetical Strategy would have hypothetically achieved a greater
average annual total return than that of its corresponding index, as shown in
the table below.
Simulated returns are hypothetical, meaning that they do not represent
actual trading, and, thus, may not reflect material economic and market
factors, such as liquidity constraints, that may have had an impact on actual
decision making. The hypothetical performance is the retroactive application
of the Strategy designed with the full benefit of hindsight.
(3) Source of Index Total Returns: Bloomberg L.P.
Source of Hypothetical Strategy Total Returns: CapIQ and Compustat, as
confirmed by Bloomberg L.P. and FactSet.
HYPOTHETICAL COMPARISON OF AVERAGE ANNUAL RETURN FOR PERIODS ENDING DECEMBER 31, 2019
Hypothetical Strategy Average Annual Return Index Average Annual Return
Since Since
Strategy 1 Year 5 Year 10 Year Inception Corresponding Index 1 Year 5 Year 10 Year Inception
________ ______ ______ _______ _________ ___________________ ______ ______ _______ _________
The Dow(R) Target 5 7.28% 6.90% 11.75% 12.33% DJIA(R) (12/31/71 - 12/31/19) 25.32% 12.58% 13.39% 11.11%
The Dow(R) Target Dividend 9.08% 3.74% 8.44% 10.69% Dow Jones U.S. Select Dividend Index(sm) 23.11% 9.91% 13.41% 11.83%
S&P 500(R) Index (12/31/91 - 12/31/19) 31.45% 11.68% 13.54% 9.77%
S&P Dvd. Aristocrats Target 25 28.52% 8.41% 12.23% 9.38% S&P 500(R) Index (12/31/99 - 12/31/19) 31.45% 11.68% 13.54% 6.05%
S&P Target 24 34.11% 10.29% 13.08% 11.36% S&P 500(R) Index (12/31/85 - 12/31/19) 31.45% 11.68% 13.54% 10.82%
S&P Target SMid 60 3.23% -1.27% 4.99% 10.53% S&P 1000(R) Index 25.14% 9.19% 12.92% 11.85%
Target Diversified Dividend 26.08% 3.54% 8.54% 11.12% Russell 3000(R) Index 30.99% 11.22% 13.40% 10.19%
Target Double Play 8.79% 2.52% 6.90% 12.23% S&P 500(R) Index (12/31/91 - 12/31/19) 31.45% 11.68% 13.54% 9.77%
Target Focus Four 7.31% 1.41% 5.76% 10.53% S&P 500(R) Index (12/31/95 - 12/31/19) 31.45% 11.68% 13.54% 9.19%
Target Global Dividend Leaders 14.59% 1.53% 6.65% 9.93% MSCI All Country World Index 27.30% 9.00% 9.37% 6.67%
Target Growth 33.41% 9.56% 9.63% 11.26% S&P 500(R) Index (12/31/94 - 12/31/19) 31.45% 11.68% 13.54% 10.20%
Target Triad 28.90% 7.19% 8.49% 10.35% S&P 500(R) Index (12/31/95 - 12/31/19) 31.45% 11.68% 13.54% 9.19%
Target VIP 19.00% 6.51% 9.98% 11.23% S&P 500(R) Index (12/31/89 - 12/31/19) 31.45% 11.68% 13.54% 9.94%
Value Line(R) Target 25 8.69% 1.39% 5.08% 14.59% S&P 500(R) Index (12/31/84 - 12/31/19) 31.45% 11.68% 13.54% 11.37%
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
Page 64
Public Offering
The Public Offering Price.
Units will be purchased at the Public Offering Price, the price per Unit of
which is comprised of the following:
- The aggregate underlying value of the Securities;
- The amount of any cash in the Income and Capital Accounts;
- Dividends receivable on Securities; and
- The maximum sales charge (which combines an initial upfront sales charge, a
deferred sales charge and the creation and development fee).
The price you pay for your Units will differ from the amount stated under
"Summary of Essential Information" due to various factors, including
fluctuations in the prices of the Securities, changes in the relevant currency
exchange rates, changes in the applicable commissions, stamp taxes, custodial
fees and other costs associated with foreign trading, and changes in the value
of the Income and/or Capital Accounts.
Although you are not required to pay for your Units until two business days
following your order (the "date of settlement"), you may pay before then. You
will become the owner of Units ("Record Owner") on the date of settlement if
payment has been received. If you pay for your Units before the date of
settlement, we may use your payment during this time and it may be considered
a benefit to us, subject to the limitations of the Securities Exchange Act of
1934, as amended.
Organization Costs. Securities purchased with the portion of the Public
Offering Price intended to be used to reimburse the Sponsor for a Trust's
organization costs (including costs of preparing the registration statement,
the Indenture and other closing documents, registering Units with the SEC and
states, licensing fees required for the establishment of certain of the Trusts
under licensing agreements which provide for full payment of the licensing
fees not later than the conclusion of the organization expense period, the
initial audit of each Trust's statement of net assets, legal fees and the
initial fees and expenses of the Trustee) will be purchased in the same
proportionate relationship as all the Securities contained in a Trust.
Securities will be sold to reimburse the Sponsor for a Trust's organization
costs at the end of the initial offering period (a significantly shorter time
period than the life of the Trusts). During the initial offering period, there
may be a decrease in the value of the Securities. To the extent the proceeds
from the sale of these Securities are insufficient to repay the Sponsor for
Trust organization costs, the Trustee will sell additional Securities to allow
a Trust to fully reimburse the Sponsor. In that event, the net asset value per
Unit of a Trust will be reduced by the amount of additional Securities sold.
Although the dollar amount of the reimbursement due to the Sponsor will remain
fixed and will never exceed the per Unit amount set forth for a Trust in
"Notes to Statements of Net Assets," this will result in a greater effective
cost per Unit to Unit holders for the reimbursement to the Sponsor. To the
extent actual organization costs are less than the estimated amount, only the
actual organization costs will ultimately be charged to a Trust. When
Securities are sold to reimburse the Sponsor for organization costs, the
Trustee will sell Securities, to the extent practicable, which will maintain
the same proportionate relationship among the Securities contained in a Trust
as existed prior to such sale.
Minimum Purchase.
The minimum amount per account you can purchase of a Trust is generally $1,000
worth of Units ($500 if you are purchasing Units for your Individual
Retirement Account or any other qualified retirement plan), but such amounts
may vary depending on your selling firm.
Maximum Sales Charge.
The maximum sales charge of 1.85% per Unit is comprised of a transactional
sales charge and a creation and development fee. After the initial offering
period the maximum sales charge will be reduced by 0.50%, to reflect the
amount of the previously charged creation and development fee.
Transactional Sales Charge.
The transactional sales charge you will pay has both an initial and a deferred
component.
Initial Sales Charge. The initial sales charge, which you will pay at the time
of purchase, is equal to the difference between the maximum sales charge of
1.85% of the Public Offering Price and the sum of the maximum remaining
deferred sales charge and creation and development fee (initially $.185 per
Unit). On the Initial Date of Deposit, and any other day the Public Offering
Price per Unit equals $10.00, there is no initial sales charge. Thereafter,
you will pay an initial sales charge when the Public Offering Price per Unit
exceeds $10.00 per Unit and as deferred sales charge and creation and
development fee payments are made.
Monthly Deferred Sales Charge. In addition, three monthly deferred sales
charges of $.045 per Unit will be deducted from a Trust's assets on
approximately the twentieth day of each month from January 20, 2021 through
March 19, 2021. If you buy Units at a price of less than $10.00 per Unit, the
Page 65
dollar amount of the deferred sales charge will not change, but the deferred
sales charge on a percentage basis will be more than 1.35% of the Public
Offering Price.
Creation and Development Fee.
As Sponsor, we will also receive, and the Unit holders will pay, a creation
and development fee. See "Expenses and Charges" for a description of the
services provided for this fee. The creation and development fee is a charge
of $.050 per Unit collected at the end of the initial offering period. If you
buy Units at a price of less than $10.00 per Unit, the dollar amount of the
creation and development fee will not change, but the creation and development
fee on a percentage basis will be more than 0.50% of the Public Offering Price.
Discounts for Certain Persons.
The maximum sales charge is 1.85% per Unit and the maximum dealer concession
is 1.25% per Unit.
If you are purchasing Units for an investment account, the terms of which
provide that your registered investment advisor or registered broker/dealer
(a) charges periodic fees in lieu of commissions; (b) charges for financial
planning, investment advisory or asset management services; or (c) charges a
comprehensive "wrap fee" or similar fee for these or comparable services ("Fee
Accounts"), you will not be assessed the transactional sales charge described
above on such purchases. These Units will be designated as Fee Account Units
and, depending upon the purchase instructions we receive, assigned either a
Fee Account Cash CUSIP Number, if you elect to have distributions paid to you,
or a Fee Account Reinvestment CUSIP Number, if you elect to have distributions
reinvested into additional Units of a Trust. Certain Fee Account Unit holders
may be assessed transaction or other account fees on the purchase and/or
redemption of such Units by their registered investment advisor, broker/dealer
or other processing organizations for providing certain transaction or account
activities. Fee Account Units are not available for purchase in the secondary
market. We reserve the right to limit or deny purchases of Units not subject
to the transactional sales charge by investors whose frequent trading activity
we determine to be detrimental to the Trusts.
Employees, officers and directors (and immediate family members) of the
Sponsor, our related companies, and dealers and their affiliates will purchase
Units at the Public Offering Price less the applicable dealer concession,
subject to the policies of the related selling firm. Immediate family members
include spouses, or the equivalent if recognized under local law, children or
step-children under the age of 21 living in the same household, parents or
step-parents and trustees, custodians or fiduciaries for the benefit of such
persons. Only employees, officers and directors of companies that allow their
employees to participate in this employee discount program are eligible for
the discounts.
You will be charged the deferred sales charge per Unit regardless of the price
you pay for your Units or whether you are eligible to receive any discounts.
However, if the purchase price of your Units was less than $10.00 per Unit or
if you are eligible to receive a discount such that the maximum sales charge
you must pay is less than the applicable maximum deferred sales charge,
including Fee Account Units, you will be credited additional Units with a
dollar value equal to the difference between your maximum sales charge and the
maximum deferred sales charge at the time you buy your Units. If you elect to
have distributions reinvested into additional Units of a Trust, in addition to
the reinvestment Units you receive you will also be credited additional Units
with a dollar value at the time of reinvestment sufficient to cover the amount
of any remaining deferred sales charge and creation and development fee to be
collected on such reinvestment Units. The dollar value of these additional
credited Units (as with all Units) will fluctuate over time, and may be less
on the dates deferred sales charges or the creation and development fee are
collected than their value at the time they were issued.
The Value of the Securities.
The Evaluator will determine the aggregate underlying value of the Securities
in a Trust as of the Evaluation Time on each business day and will adjust the
Public Offering Price of the Units according to this valuation. This Public
Offering Price will be effective for all orders received before the Evaluation
Time on each such day. If we or the Trustee receive orders for purchases,
sales or redemptions after that time, or on a day which is not a business day,
they will be held until the next determination of price. The term "business
day" as used in this prospectus shall mean any day on which the NYSE is open.
For purposes of Securities and Unit settlement, the term business day does not
include days on which U.S. financial institutions are closed.
The aggregate underlying value of the Securities in the Trusts will be
determined as follows: if the Securities are listed on a national or foreign
securities exchange or The NASDAQ Stock Market, LLC(R), their value shall
generally be based on the closing sale price on the exchange or system which
is the principal market therefore ("Primary Exchange"), which shall be deemed
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to be the NYSE if the Securities are listed thereon (unless the Evaluator
deems such price inappropriate as the basis for evaluation). In the event a
closing sale price on the Primary Exchange is not published, the Securities
will be valued based on the last trade price on the Primary Exchange. If no
trades occur on the Primary Exchange for a specific trade date, the value will
be based on the closing sale price from, in the opinion of the Evaluator, an
appropriate secondary exchange, if any. If no trades occur on the Primary
Exchange or any appropriate secondary exchange on a specific trade date, the
Evaluator will determine the value of the Securities using the best
information available to the Evaluator, which may include the prior day's
evaluated price. If the Security is an American Depositary Receipt/ADR, Global
Depositary Receipt/GDR or other similar security in which no trade occurs on
the Primary Exchange or any appropriate secondary exchange on a specific trade
date, the value will be based on the evaluated price of the underlying
security, determined as set forth above, after applying the appropriate
ADR/GDR ratio, the exchange rate and such other information which the
Evaluator deems appropriate. For purposes of valuing Securities traded on The
NASDAQ Stock Market, LLC(R), closing sale price shall mean the Nasdaq(R)
Official Closing Price as determined by The NASDAQ Stock Market, LLC(R). If
the Securities are not so listed or, if so listed and the principal market
therefore is other than on the Primary Exchange or any appropriate secondary
exchange, the value shall generally be based on the current ask price on the
over-the-counter market (unless the Evaluator deems such price inappropriate
as a basis for evaluation). If current ask prices are unavailable, the value
is generally determined (a) on the basis of current ask prices for comparable
securities, (b) by appraising the value of the Securities on the ask side of
the market, or (c) any combination of the above. If such prices are in a
currency other than U.S. dollars, the value of such Security shall be
converted to U.S. dollars based on current exchange rates (unless the
Evaluator deems such prices inappropriate as a basis for evaluation). If the
Evaluator deems a price determined as set forth above to be inappropriate as
the basis for evaluation, the Evaluator shall use such other information
available to the Evaluator which it deems appropriate as the basis for
determining the value of a Security.
After the initial offering period is over, the aggregate underlying value of
the Securities will be determined as set forth above, except that bid prices
are used instead of ask prices when necessary.
Distribution of Units
We intend to qualify Units of the Trusts for sale in a number of states. All
Units will be sold at the then current Public Offering Price.
The Sponsor compensates intermediaries, such as broker/dealers and banks, for
their activities that are intended to result in sales of Units of the Trusts.
This compensation includes dealer concessions described in the following
section and may include additional concessions and other compensation and
benefits to broker/dealers and other intermediaries.
Dealer Concessions.
Dealers and other selling agents can purchase Units at prices which reflect a
concession or agency commission of 1.25% of the Public Offering Price per
Unit, subject to reductions set forth in "Public Offering-Discounts for
Certain Persons."
Eligible dealer firms and other selling agents who, during the previous
consecutive 12-month period through the end of the most recent month, sold
primary market units of unit investment trusts sponsored by us in the dollar
amounts shown below will be entitled to up to the following additional sales
concession on primary market sales of units during the current month of unit
investment trusts sponsored by us:
Total sales Additional
(in millions) Concession
_____________________________________________________
$25 but less than $100 0.035%
$100 but less than $150 0.050%
$150 but less than $250 0.075%
$250 but less than $1,000 0.100%
$1,000 but less than $5,000 0.125%
$5,000 but less than $7,500 0.150%
$7,500 or more 0.175%
Dealers and other selling agents will not receive a concession on the sale of
Units which are not subject to a transactional sales charge, but such Units
will be included in determining whether the above volume sales levels are met.
Eligible dealer firms and other selling agents include clearing firms that
place orders with First Trust and provide First Trust with information with
respect to the representatives who initiated such transactions. Eligible
dealer firms and other selling agents will not include firms that solely
provide clearing services to other broker/dealer firms or firms who place
orders through clearing firms that are eligible dealers. We reserve the right
to change the amount of concessions or agency commissions from time to time.
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Certain commercial banks may be making Units of the Trusts available to their
customers on an agency basis. A portion of the transactional sales charge paid
by these customers is kept by or given to the banks in the amounts shown above.
Other Compensation and Benefits to Broker/Dealers.
The Sponsor, at its own expense and out of its own profits, currently provides
additional compensation and benefits to broker/dealers who sell Units of these
Trusts and other First Trust products. This compensation is intended to result
in additional sales of First Trust products and/or compensate broker/dealers
and financial advisors for past sales. A number of factors are considered in
determining whether to pay these additional amounts. Such factors may include,
but are not limited to, the level or type of services provided by the
intermediary, the level or expected level of sales of First Trust products by
the intermediary or its agents, the placing of First Trust products on a
preferred or recommended product list, access to an intermediary's personnel,
and other factors. The Sponsor makes these payments for marketing, promotional
or related expenses, including, but not limited to, expenses of entertaining
retail customers and financial advisers, advertising, sponsorship of events or
seminars, obtaining information about the breakdown of unit sales among an
intermediary's representatives or offices, obtaining shelf space in
broker/dealer firms and similar activities designed to promote the sale of the
Sponsor's products. The Sponsor makes such payments to a substantial majority
of intermediaries that sell First Trust products. The Sponsor may also make
certain payments to, or on behalf of, intermediaries to defray a portion of
their costs incurred for the purpose of facilitating Unit sales, such as the
costs of developing or purchasing trading systems to process Unit trades.
Payments of such additional compensation described in this and the preceding
paragraph, some of which may be characterized as "revenue sharing," create a
conflict of interest by influencing financial intermediaries and their agents
to sell or recommend a First Trust product, including these Trusts, over
products offered by other sponsors or fund companies. These arrangements will
not change the price you pay for your Units.
Advertising and Investment Comparisons.
Advertising materials regarding a Trust may discuss several topics, including:
developing a long-term financial plan; working with your financial
professional; the nature and risks of various investment strategies and unit
investment trusts that could help you reach your financial goals; the
importance of discipline; how a Trust operates; how securities are selected;
various unit investment trust features such as convenience and costs; and
options available for certain types of unit investment trusts. These materials
may include descriptions of the principal businesses of the companies
represented in each Trust, research analysis of why they were selected and
information relating to the qualifications of the persons or entities
providing the research analysis. In addition, they may include research
opinions on the economy and industry sectors included and a list of investment
products generally appropriate for pursuing those recommendations.
From time to time we may compare the estimated returns of a Trust (which may
show performance net of the expenses and charges a Trust would have incurred)
and returns over specified periods of other similar trusts we sponsor in our
advertising and sales materials, with (1) returns on other taxable investments
such as the common stocks comprising various market indexes, corporate or U.S.
Government bonds, bank CDs and money market accounts or funds, (2) performance
data from Morningstar, Inc. or (3) information from publications such as
Money, The New York Times, U.S. News and World Report, Bloomberg Businessweek,
Forbes or Fortune. The investment characteristics of each Trust differ from
other comparative investments. You should not assume that these performance
comparisons will be representative of a Trust's future performance. We may
also, from time to time, use advertising which classifies trusts or portfolio
securities according to capitalization and/or investment style.
The Sponsor's Profits
We will receive a gross sales commission equal to the maximum transactional
sales charge per Unit for each Trust less any reduction as stated in "Public
Offering." We will also receive the amount of any collected creation and
development fee. Also, any difference between our cost to purchase the
Securities and the price at which we sell them to a Trust is considered a
profit or loss (see Note 2 of "Notes to Schedules of Investments"). During the
initial offering period, dealers and others may also realize profits or
sustain losses as a result of fluctuations in the Public Offering Price they
receive when they sell the Units.
In maintaining a market for the Units, any difference between the price at
which we purchase Units and the price at which we sell or redeem them will be
a profit or loss to us.
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The Secondary Market
Although not obligated, we may maintain a market for the Units after the
initial offering period and continuously offer to purchase Units at prices
based on the Redemption Price per Unit.
We will pay all expenses to maintain a secondary market, except the Evaluator
fees and Trustee costs to transfer and record the ownership of Units. We may
discontinue purchases of Units at any time. IF YOU WISH TO DISPOSE OF YOUR
UNITS, YOU SHOULD ASK US FOR THE CURRENT MARKET PRICES BEFORE MAKING A TENDER
FOR REDEMPTION TO THE TRUSTEE. If you sell or redeem your Units before you
have paid the total deferred sales charge on your Units, you will have to pay
the remainder at that time.
How We Purchase Units
The Trustee will notify us of any tender of Units for redemption. If our bid
at that time is equal to or greater than the Redemption Price per Unit, we may
purchase the Units. You will receive your proceeds from the sale no later than
if they were redeemed by the Trustee. We may tender Units we hold to the
Trustee for redemption as any other Units. If we elect not to purchase Units,
the Trustee may sell tendered Units in the over-the-counter market, if any.
However, the amount you will receive is the same as you would have received on
redemption of the Units.
Expenses and Charges
The estimated annual expenses of each Trust are listed under "Fee Table." If
actual expenses of a Trust exceed the estimate, that Trust will bear the
excess. The Trustee will pay operating expenses of the Trusts from the Income
Account of such Trust if funds are available, and then from the Capital
Account. The Income and Capital Accounts are non-interest-bearing to Unit
holders, so the Trustee may earn interest on these funds, thus benefiting from
their use.
First Trust Advisors L.P., an affiliate of ours, acts as Portfolio Supervisor
and Evaluator and will be compensated for providing portfolio supervisory
services and evaluation services as well as bookkeeping and other
administrative services to the Trusts. In providing portfolio supervisory
services, the Portfolio Supervisor may purchase research services from a
number of sources, which may include underwriters or dealers of the Trusts. As
Sponsor, we will receive brokerage fees when the Trusts use us (or an
affiliate of ours) as agent in buying or selling Securities. As authorized by
the Indenture, the Trustee may employ a subsidiary or affiliate of the Trustee
to act as broker to execute certain transactions for a Trust. Each Trust will
pay for such services at standard commission rates.
The fees payable to First Trust Advisors L.P. and the Trustee are based on the
largest aggregate number of Units of a Trust outstanding at any time during
the calendar year, except during the initial offering period, in which case
these fees are calculated based on the largest number of Units outstanding
during the period for which compensation is paid. These fees may be adjusted
for inflation without Unit holders' approval, but in no case will the annual
fees paid to us or our affiliates for providing services to all unit
investment trusts be more than the actual cost of providing such services in
such year.
As Sponsor, we will receive a fee from each Trust for creating and developing
the Trusts, including determining each Trust's objectives, policies,
composition and size, selecting service providers and information services and
for providing other similar administrative and ministerial functions. The
"creation and development fee" is a charge of $.050 per Unit outstanding at
the end of the initial offering period. The Trustee will deduct this amount
from a Trust's assets as of the close of the initial offering period. We do
not use this fee to pay distribution expenses or as compensation for sales
efforts. This fee will not be deducted from your proceeds if you sell or
redeem your Units before the end of the initial offering period.
In addition to a Trust's operating expenses and those fees described above,
the Trusts may also incur the following charges:
- All legal expenses of the Trustee according to its responsibilities under
the Indenture;
- The expenses and costs incurred by the Trustee to protect a Trust and your
rights and interests (i.e., participating in litigation concerning a portfolio
security) and the costs of indemnifying the Trustee;
- Fees for any extraordinary services the Trustee performed under the Indenture;
- Payment for any loss, liability or expense the Trustee incurred without
negligence, bad faith or willful misconduct on its part, in connection with
its acceptance or administration of a Trust;
- Payment for any loss, liability or expenses we incurred without negligence,
bad faith or willful misconduct in acting as Sponsor of a Trust;
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- Foreign custodial and transaction fees (which may include compensation paid
to the Trustee or its subsidiaries or affiliates), if any; and/or
- All taxes and other government charges imposed upon the Securities or any
part of a Trust.
The above expenses and the Trustee's annual fee are secured by a lien on the
Trusts. In addition, if there is not enough cash in the Income or Capital
Accounts, the Trustee has the power to sell Securities to make cash available
to pay these charges which may result in capital gains or losses to you. See
"Tax Status."
Tax Status
Federal Tax Matters.
This section discusses some of the main U.S. federal income tax consequences
of owning Units of a Trust as of the date of this prospectus. Tax laws and
interpretations change frequently, and these summaries do not describe all of
the tax consequences to all taxpayers. For example, these summaries generally
do not describe your situation if you are a broker/dealer, or other investor
with special circumstances. In addition, this section may not describe your
state, local or non-U.S. tax consequences.
This federal income tax summary is based in part on the advice of counsel to
the Sponsor. The Internal Revenue Service ("IRS") could disagree with any
conclusions set forth in this section. In addition, our counsel may not have
been asked to review, and may not have reached a conclusion with respect to
the federal income tax treatment of the assets to be deposited in the Trusts.
These summaries may not be sufficient for you to use for the purpose of
avoiding penalties under federal tax law.
As with any investment, you should seek advice based on your individual
circumstances from your own tax advisor.
Grantor Trusts.
---------------
The following discussion pertains to The Dow(R) Target 5 Portfolio, The Dow(R)
Target Dividend Portfolio, S&P Target 24 Portfolio and Value Line(R) Target 25
Portfolio, which are considered grantor trusts under federal tax laws.
Trust Status.
Unit investment trusts maintain both Income and Capital Accounts, regardless
of tax structure. Please refer to the "Income and Capital Distributions"
section of the prospectus for more information.
The Trusts intend to qualify as grantor trusts under the federal tax laws. If
a Trust qualifies as a grantor trust, such Trust will not be taxed as a
corporation for federal income tax purposes and will not pay federal income
taxes. For federal income tax purposes, in grantor trusts you are deemed to
own a pro rata portion of the underlying assets of a Trust directly, and as
such you will be considered to have received a pro rata share of income. All
taxability issues are taken into account at the Unit holder level.
Income from the Trusts.
Income realized by a Trust passes through and is treated as income of the Unit
holders. Income is reported without any deduction for expenses. Expenses are
separately reported. Generally, the income paid to Unit holders is net the
expenses of a Trust, but the income reportable by Unit holders is gross the
expenses of such Trust.
You may be required to recognize income for federal income tax purposes in one
year even if you do not receive a corresponding distribution from a Trust, or
do not receive the corresponding distribution from such Trust until a later
year. This is true even if you elect to have your distributions reinvested
into additional Units. In addition, the income that you must take into account
for federal income tax purposes is not reduced by amounts used to pay sales
charges or Trust expenses.
Some income from a Trust's assets may have been received as long-term capital
gains, which, if you are an individual, is generally taxed at a lower rate
than your ordinary income and short-term capital gain income. Income from a
Trust's assets (including capital gain income) may also be subject to a
"Medicare tax" if your adjusted gross income exceeds certain threshold amounts.
Certain Stock Dividends.
Ordinary income dividends paid on certain stock held by a Trust are generally
taxed at the same rates that apply to long-term capital gains, provided
certain holding period requirements are satisfied and provided the dividends
are attributable to qualifying dividend income ("QDI") received by the Trust
itself. Ordinary income dividends that do not meet these requirements will
generally be taxed at ordinary income tax rates. After the end of the tax
year, each Trust will provide a tax statement to its Unit holders reporting
the amount of any distribution which may be taken into account as a dividend
which is eligible for the capital gains tax rates.
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Unit holders that are corporations may be eligible for the dividends received
deduction on qualifying dividends received by a Trust from certain corporations.
Sale of Units.
If you sell your Units (whether to a third party or to your Trust), you will
generally recognize a taxable gain or loss. To determine the amount of this
gain or loss, you must subtract your (adjusted) tax basis in your Trust's
assets from the amount you receive from the sale. You can generally determine
your original tax basis in each Trust's asset by apportioning the cost of your
Units, including sales charges, among the Trust assets ratably according to
their values on the date you acquire your Units. In certain circumstances,
however, you may have to use information provided by the Trustee to adjust
your tax basis after you acquire your Units (for example, in the case of
certain corporate events affecting an issuer, such as stock splits or mergers,
or in the case of certain dividends that exceed a corporation's accumulated
earnings and profits).
The tax statement you receive may contain information to allow you to
calculate and adjust your basis in a Trust's assets and determine whether any
gain or loss recognized by you should be considered long-term capital gain,
short-term capital gain or return of capital. The information reported to you
is based upon rules that do not take into consideration all of the facts that
may be known to you or to your advisors. You should consult with your tax
advisor about any adjustments that may need to be made to the information
reported to you in determining the amount of your gain or loss.
Under the wash sale rules, all or a portion of any loss you may recognize on a
disposition of your Units or on a disposition of assets by a Trust may be
disallowed if you purchase stocks or other assets that are the same as or
substantially identical to any of the assets held directly or indirectly
through such Trust within 30 days of the disposition.
Distribution Reinvestment Option.
If you elect to reinvest your distributions into additional Units, you will be
treated as if you have received your distribution in an amount equal to the
distribution you are entitled to. Your tax liability will be the same as if
you received the distribution in cash. Also, the reinvestment would generally
be considered a purchase of new Units for federal income tax purposes.
Treatment of Trust Expenses.
Generally, for federal income tax purposes, you must take into account your
full pro rata share of your Trust's income, even if some of that income is
used to pay Trust expenses. You may not be able to take a deduction for some
or all of these expenses even if the cash you receive is reduced by such
expenses.
Investments in Certain Non-U.S. Corporations.
A foreign corporation will generally be treated as a passive foreign
investment company ("PFIC") if 75% or more of its income is passive income or
if 50% or more of its assets are held to produce passive income. If a Trust
purchases shares in PFICs, you may be subject to U.S. federal income tax on a
portion of certain distributions from the PFICs or on gains from the
disposition of such PFIC shares at tax rates that were applicable in prior
years and any gain may be recharacterized as ordinary income that is not
eligible for the lower net capital gains tax rate. Additional charges in the
form of interest may also be imposed on you. Certain elections may be
available with respect to PFICs that would limit these consequences. However,
these elections would require you to include certain income of the PFICs in
your taxable income even if not distributed to a Trust or to you, or require
you to annually recognize as ordinary income any increase in the value of the
shares of the PFICs, thus requiring you to recognize income for federal income
tax purposes in excess of your actual distributions from PFICs and proceeds
from dispositions of PFIC stock during a particular year. Dividends paid by
PFICs are not treated as QDI to shareholders of the PFICs.
Non-U.S. Financial Accounts.
A Trust may directly or indirectly hold financial accounts outside of the
United States. You may have certain reporting obligations to the United States
Treasury Department under its rules relating to the reporting of foreign bank
and financial accounts (commonly known as "FBAR"). You should consult with
your tax advisor as to any reporting obligations that you may have as a result
of your investment in a Trust.
Non-U.S. Investors.
If you are a non-U.S. investor, distributions from a Trust treated as
dividends will generally be subject to a U.S. withholding tax of 30% of the
distribution. Certain dividends, such as capital gains dividends, short-term
capital gains dividends, and distributions that are attributable to exempt-
interest income or certain other interest income, may not be subject to U.S.
withholding taxes. In addition, some non-U.S. investors may be eligible for a
reduction or elimination of U.S. withholding taxes under a treaty. However,
the qualification for those exclusions may not be known at the time of the
distribution.
Page 71
Separately, the United States, pursuant to the Foreign Account Tax Compliance
Act ("FATCA") imposes a 30% tax on certain non-U.S. entities that receive U.S.
source interest or dividends if the non-U.S. entity does not comply with
certain U.S. disclosure and reporting requirements. This FATCA tax also
applies to the gross proceeds from the disposition of securities that produce
U.S. source interest or dividends after December 31, 2018. However, proposed
regulations may eliminate the requirement to withhold on payments of gross
proceeds from dispositions.
It is the responsibility of the entity through which you hold your Units to
determine the applicable withholding.
Foreign Tax Credit.
If a Trust directly or indirectly invests in non-U.S. stocks, the tax
statement that you receive may include an item showing foreign taxes such
Trust paid to other countries. You may be able to deduct or receive a tax
credit for your share of these taxes. A Trust would have to meet certain IRS
requirements in order to pass through credits to you.
In-Kind Distributions.
If permitted by this prospectus, as described in "Redeeming Your Units," you
may request an In-Kind Distribution of a Trust's assets when you redeem your
Units at any time prior to 30 business days before the Trust's Mandatory
Termination Date. However, this ability to request an In-Kind Distribution
will terminate at any time that the number of outstanding Units has been
reduced to 10% or less of the highest number of Units issued by a Trust. You
will not recognize gain or loss if you only receive whole Trust assets in
exchange for the identical amount of your pro rata portion of the same Trust
assets held by your Trust. However, if you also receive cash in exchange for a
Trust asset or a fractional portion of a Trust asset, you will generally
recognize gain or loss based on the difference between the amount of cash you
receive and your tax basis in such Trust asset or fractional portion.
Rollovers.
If you elect to have your proceeds from a Trust rolled over into a future
series of such Trust, the exchange would generally be considered a sale for
federal income tax purposes. Under the wash sale rules, if the series into
which you roll your proceeds holds the same or substantially identical assets,
any loss you recognize on the rollover will be disallowed.
State and Local Taxes.
Based on the advice of Carter Ledyard & Milburn, LLP, special counsel to the
Trusts for New York tax matters, under the existing income tax laws of the
State and City of New York, assuming that the Trusts are not treated as
corporations for federal income tax purposes, the Trusts will not be taxed as
corporations for New York State and New York City tax purposes, and the income
of the Trusts will be treated as the income of the Unit holders in the same
manner as for federal income tax purposes.
Regulated Investment Company Trusts.
------------------------------------
The following discussion pertains to the S&P Dividend Aristocrats Target 25
Portfolio, the S&P Target SMid 60 Portfolio, Target Double Play Portfolio,
Target Diversified Dividend Portfolio, Target Focus Four Portfolio, Target
Global Dividend Leaders Portfolio, Target Growth Portfolio, Target Triad
Portfolio and Target VIP Portfolio, each of which intends to qualify as a
"regulated investment company," commonly called a "RIC," under federal tax laws.
Trust Status.
Unit investment trusts maintain both Income and Capital Accounts, regardless
of tax structure. Please refer to the "Income and Capital Distributions"
section of the prospectus for more information.
Each Trust intends to qualify as a "regulated investment company," commonly
known as a "RIC," under the federal tax laws. If a Trust qualifies as a RIC
and distributes its income as required by the tax law, such Trust generally
will not pay federal income taxes. For federal income tax purposes, you are
treated as the owner of the Trust Units and not of the assets held by a Trust.
Income from the Trusts.
Trust distributions are generally taxable. After the end of each year, you
will receive a tax statement that separates a Trust's distributions into
ordinary income dividends, capital gain dividends and return of capital.
Income reported is generally net of expenses (but see "Treatment of Trust
Expenses" below). Ordinary income dividends are generally taxed at your
ordinary income tax rate, however, certain dividends received from a Trust may
be taxed at the capital gains tax rates. Generally, all capital gain dividends
are treated as long-term capital gains regardless of how long you have owned
your Units. In addition, a Trust may make distributions that represent a
return of capital for tax purposes and will generally not be currently taxable
to you, although they generally reduce your tax basis in your Units and thus
increase your taxable gain or decrease your loss when you dispose of your
Page 72
Units. The tax laws may require you to treat distributions made to you in
January as if you had received them on December 31 of the previous year.
Some distributions from a Trust may qualify as long-term capital gains, which,
if you are an individual, is generally taxed at a lower rate than your
ordinary income and short-term capital gain income. However, capital gain
received from assets held for more than one year that is considered
"unrecaptured section 1250 gain" (which may be the case, for example, with
some capital gains attributable to equity interests in REITs) is taxed at a
higher rate. The distributions from a Trust that you must take into account
for federal income tax purposes are not reduced by the amount used to pay a
deferred sales charge, if any. Distributions from a Trust, including capital
gains, may also be subject to a "Medicare tax" if your adjusted gross income
exceeds certain threshold amounts.
Certain Stock Dividends.
Ordinary income dividends received by an individual Unit holder from a RIC
such as the Trusts are generally taxed at the same rates that apply to long-
term capital gains, provided certain holding period requirements are satisfied
and provided the dividends are attributable to qualifying dividend income
("QDI") received by a Trust itself. Dividends that do not meet these
requirements will generally be taxed at ordinary income tax rates. After the
end of the tax year, each Trust will provide a tax statement to its Unit
holders reporting the amount of any distribution which may be taken into
account as a dividend which is eligible for the capital gains tax rates.
Unit holders that are corporations may be eligible for the dividends received
deduction with respect to certain ordinary income dividends on Units that are
attributable to qualifying dividends received by a Trust from certain
corporations.
Because the Trusts hold REIT shares, some dividends may be designated by the
REIT as capital gain dividends and, therefore, distributions from the Trusts
attributable to such dividends and designated by the Trusts as capital gain
dividends may be taxable to you as capital gains. If you hold a Unit for six
months or less, any loss incurred by you related to the sale of such Unit will
be treated as a long-term capital loss to the extent of any long-term capital
gain distributions received (or deemed to have been received) with respect to
such Unit.
Some portion of the dividends on your Units that are attributable to dividends
received by a Trust from REIT shares may be designated by a Trust as eligible
for a deduction for qualified business income.
Sale of Units.
If you sell your Units (whether to a third party or to a Trust), you will
generally recognize a taxable gain or loss. To determine the amount of this
gain or loss, you must subtract your (adjusted) tax basis in your Units from
the amount you receive from the sale. Your original tax basis in your Units is
generally equal to the cost of your Units, including sales charges. In some
cases, however, you may have to adjust your tax basis after you purchase your
Units, in which case your gain would be calculated using your adjusted basis.
The tax statement you receive in regard to the sale or redemption of your
Units may contain information about your basis in the Units and whether any
gain or loss recognized by you should be considered long-term or short-term
capital gain. The information reported to you is based upon rules that do not
take into consideration all of the facts that may be known to you or to your
advisors. You should consult with your tax advisor about any adjustments that
may need to be made to the information reported to you in determining the
amount of your gain or loss.
Distribution Reinvestment Option.
If you elect to reinvest your distributions into additional Units, you will be
treated as if you have received your distribution in an amount equal to the
distribution you are entitled to. Your tax liability will be the same as if
you received the distribution in cash. Also, the reinvestment would generally
be considered a purchase of new Units for federal income tax purposes.
Treatment of Trust Expenses.
Expenses incurred and deducted by a Trust will generally not be treated as
income taxable to you. In some cases, however, you may be required to treat
your portion of these Trust expenses as income. You may not be able to take a
deduction for some or all of these expenses even if the cash you receive is
reduced by such expenses.
Investments in Certain Non-U.S. Corporations.
A foreign corporation will generally be treated as a passive foreign
investment company ("PFIC") if 75% or more of its income is passive income or
if 50% or more of its assets are held to produce passive income. If a Trust
holds an equity interest in PFICs, such Trust could be subject to U.S. federal
income tax and additional interest charges on gains and certain distributions
from the PFICs, even if all the income or gain is distributed in a timely
fashion to such Trust Unit holders. A Trust will not be able to pass through
to its Unit holders any credit or deduction for such taxes if the taxes are
imposed at the Trust level. A Trust may be able to make an election that could
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limit the tax imposed on such Trust. In this case, a Trust would recognize as
ordinary income any increase in the value of such PFIC shares, and as ordinary
loss any decrease in such value to the extent it did not exceed prior
increases included in income.
Under this election, a Trust might be required to recognize income in excess
of its distributions from the PFICs and its proceeds from dispositions of PFIC
stock during that year, and such income would nevertheless be subject to the
distribution requirement and would be taken into account for purposes of
determining the application of the 4% excise tax imposed on RICs that do not
meet certain distribution thresholds. Dividends paid by PFICs are not treated
as QDI to shareholders of the PFICs.
Non-U.S. Investors.
If you are a non-U.S. investor, distributions from a Trust treated as
dividends will generally be subject to a U.S. withholding tax of 30% of the
distribution. Certain dividends, such as capital gains dividends and short-
term capital gains dividends may not be subject to U.S. withholding taxes. In
addition, some non-U.S. investors may be eligible for a reduction or
elimination of U.S. withholding taxes under a treaty. However, the
qualification for those exclusions may not be known at the time of the
distribution.
Separately, the United States, pursuant to the Foreign Account Tax Compliance
Act ("FATCA") imposes a 30% tax on certain non-U.S. entities that receive U.S.
source interest or dividends if the non-U.S. entity does not comply with
certain U.S. disclosure and reporting requirements. This FATCA tax also
applies to the gross proceeds from the disposition of securities that produce
U.S. source interest or dividends after December 31, 2018. However, proposed
regulations may eliminate the requirement to withhold on payments of gross
proceeds from dispositions.
It is the responsibility of the entity through which you hold your Units to
determine the applicable withholding.
Foreign Tax Credit.
If a Trust directly or indirectly invests in non-U.S. stocks, the tax
statement that you receive may include an item showing foreign taxes such
Trust paid to other countries. You may be able to deduct or receive a tax
credit for your share of these taxes. A Trust would have to meet certain IRS
requirements in order to pass through credits to you.
In-Kind Distributions.
If permitted by this prospectus, as described in "Redeeming Your Units," you
may request an In-Kind Distribution of a Trust's assets when you redeem your
Units. This distribution is subject to tax, and you will generally recognize
gain or loss, generally based on the value at that time of the securities and
the amount of cash received.
Rollovers.
If you elect to have your proceeds from your Trust rolled over into a future
series of the Trust, the exchange would generally be considered a sale for
federal income tax purposes.
You should consult your tax advisor regarding potential foreign, state or
local taxation with respect to your Units.
United Kingdom Taxation.
The following summary describes certain important U.K. tax consequences for
certain U.S. resident Unit holders who hold Units in the Target VIP Portfolio
as capital assets. This summary is intended to be a general guide only and is
subject to any changes in law interpretation or practice occurring after the
date of this prospectus. You should consult your own tax advisor about your
particular circumstances.
Taxation of Dividends. U.S. resident Unit holders who hold their Units as an
investment and are not resident in the United Kingdom for U.K. tax purposes
for the relevant tax year will not generally be liable for U.K. tax on income
in respect of dividends received from a U.K. company.
Taxation of Capital Gains. U.S. investors who are not resident for U.K. tax
purposes in the United Kingdom will not generally be liable for U.K. tax on
gains arising on the disposal of Units in the Target VIP Portfolio. However,
they may be liable if, in the case of corporate holders, such persons carry on
a trade in the United Kingdom through a permanent establishment, or in the
case of individual holders, such persons carry on a trade, profession or
vocation in the United Kingdom through a branch or agency, and the Units are
used for the purposes of such trade, profession or vocation or used, held or
acquired for the purposes of such branch or agency or permanent establishment
as the case may be. Individual U.S. investors may also be liable if they have
previously been resident in the United Kingdom and become resident in the
United Kingdom in the future.
Inheritance Tax. Individual U.S. investors who, for the purposes of the Estate
and Gift Tax Convention between the United States and the United Kingdom, are
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domiciled in the United States and who are not U.K. nationals will generally
not be subject to U.K. inheritance tax on death or on gifts of the Units made
during their lifetimes, provided any applicable U.S. federal gift or estate
tax is paid. They may be subject to U.K. inheritance tax if the Units form
part of the business property of a U.K. permanent establishment of an
enterprise or pertain to a U.K. fixed base used for the performance of
personal services in the United Kingdom.
Where the Units are held on trust, the Units will generally not be subject to
U.K. inheritance tax if at the time of settlement, the settlor was domiciled
in the United States and was not a national of the United Kingdom.
Where the Units are subject to both U.K. inheritance tax and U.S. federal gift
or estate tax, one of the taxes could generally be credited against the other.
Stamp Tax. A purchase of Securities issued by a U.K. incorporated company
(such as some of the Securities listed in the FT Index) will generally result
in either U.K. stamp duty or stamp duty reserve tax ("SDRT") needing to be
paid by the purchaser. The Target VIP Portfolio paid this tax when it acquired
Securities. When the Target VIP Portfolio sell Securities, it is anticipated
that any U.K. stamp duty or SDRT will be paid by the purchaser.
Retirement Plans
You may purchase Units of the Trusts for:
- Individual Retirement Accounts;
- Keogh Plans;
- Pension funds; and
- Other tax-deferred retirement plans.
Generally, the federal income tax on capital gains and income received in each
of the above plans is deferred until you receive distributions. These
distributions are generally treated as ordinary income but may, in some cases,
be eligible for special averaging or tax-deferred rollover treatment. Before
participating in a plan like this, you should review the tax laws regarding
these plans and consult your attorney or tax advisor. Brokerage firms and
other financial institutions offer these plans with varying fees and charges.
Rights of Unit Holders
Unit Ownership.
Ownership of Units will not be evidenced by certificates. If you purchase or
hold Units through a broker/dealer or bank, your ownership of Units will be
recorded in book-entry form at the Depository Trust Company ("DTC") and
credited on its records to your broker/dealer's or bank's DTC account.
Transfer of Units will be accomplished by book entries made by DTC and its
participants if the Units are registered to DTC or its nominee, Cede & Co. DTC
will forward all notices and credit all payments received in respect of the
Units held by the DTC participants. You will receive written confirmation of
your purchases and sales of Units from the broker/dealer or bank through which
you made the transaction. You may transfer your Units by contacting the
broker/dealer or bank through which you hold your Units.
Unit Holder Reports.
The Trustee will prepare a statement detailing the per Unit amounts (if any)
distributed from the Income Account and Capital Account in connection with
each distribution. In addition, at the end of each calendar year, the Trustee
will prepare a statement which contains the following information:
- A summary of transactions in the Trusts for the year;
- A list of any Securities sold during the year and the Securities held at the
end of that year by the Trusts;
- The Redemption Price per Unit, computed on the 31st day of December of such
year (or the last business day before); and
- Amounts of income and capital distributed during the year.
It is the responsibility of the entity through which you hold your Units to
distribute these statements to you. In addition, you may also request from the
Trustee copies of the evaluations of the Securities as prepared by the
Evaluator to enable you to comply with applicable federal and state tax
reporting requirements.
Income and Capital Distributions
You will begin receiving distributions on your Units only after you become a
Record Owner. The Trustee will credit dividends received on a Trust's
Securities to the Income Account of such Trust. All other receipts, such as
return of capital or capital gain dividends, are credited to the Capital
Account of such Trust. Dividends received on foreign Securities, if any, are
converted into U.S. dollars at the applicable exchange rate.
For Trusts that are structured as grantor trusts, the Trustee will distribute
money from the Income and Capital Accounts on the twenty-fifth day of each
month to Unit holders of record on the tenth day of such month. However, the
Trustee will not distribute money if the aggregate amount in the Income and
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Capital Accounts, exclusive of sale proceeds, equals less than 0.1% of the net
asset value of a Trust. Undistributed money in the Income and Capital Accounts
will be distributed in the next month in which the aggregate amount available
for distribution, exclusive of sale proceeds, exceeds 0.1% of the net asset
value of a Trust. The Trustee will distribute sale proceeds in the Capital
Account, net of amounts designated to meet redemptions, pay the deferred sales
charge and creation and development fee, and pay expenses, on the twenty-fifth
day of each month to Unit holders of record on the tenth day of such month
provided the amount equals at least $1.00 per 100 Units.
For Trusts that intend to qualify as RICs and that make monthly distributions,
the Trustee will distribute money from the Income and Capital Accounts on the
twenty-fifth day of each month to Unit holders of record on the tenth day of
each month. Distributions from Trusts that intend to qualify as RICs and that
make monthly distributions will consist of the balance of the Income Account
each month after deducting for expenses. Distributions from the Capital
Account will only be made if the amount available for distribution equals at
least $1.00 per 100 Units. In any case, the Trustee will distribute any funds
in the Capital Account in December of each year and as part of the final
liquidation distribution.
For Trusts that intend to qualify as RICs and that make semi-annual
distributions, the Trustee will distribute money from the Income and Capital
Accounts on the twenty-fifth day of June and December to Unit holders of
record on the tenth day of such months. Distributions from the Capital Account
will be made after amounts designated to meet redemptions, pay the deferred
sales charge and creation and development fee, and pay expenses are deducted.
In addition, the Trustee will only distribute money in the Capital Account if
the amount available for distribution from that account equals at least $1.00
per 100 Units. In any case, the Trustee will distribute any funds in the
Capital Account in December of each year and as part of the final liquidation
distribution.
No income distribution will be paid if accrued expenses of a Trust exceed
amounts in the Income Account on the Distribution Dates. Distribution amounts
will vary with changes in a Trust's fees and expenses, in dividends received
and with the sale of Securities.
If the Trustee does not have your taxpayer identification number ("TIN"), it
is required to withhold a certain percentage of your distribution and deliver
such amount to the IRS. You may recover this amount by giving your TIN to the
Trustee, or when you file a tax return. However, you should check your
statements to make sure the Trustee has your TIN to avoid this "back-up
withholding."
If an Income or Capital Account distribution date is a day on which the NYSE
is closed, the distribution will be made on the next day the stock exchange is
open. Distributions are paid to Unit holders of record determined as of the
close of business on the Record Date for that distribution or, if the Record
Date is a day on which the NYSE is closed, the first preceding day on which
the exchange is open.
We anticipate that there will be enough money in the Capital Account of a
Trust to pay the deferred sales charge to the Sponsor. If not, the Trustee may
sell Securities to meet the shortfall.
Within a reasonable time after a Trust is terminated, unless you are a
Rollover Unit holder, you will receive the pro rata share of the money from
the sale of the Securities and amounts in the Income and Capital Accounts. All
Unit holders will receive a pro rata share of any other assets remaining in
their Trust, after deducting any unpaid expenses.
The Trustee may establish reserves (the "Reserve Account") within a Trust to
cover anticipated state and local taxes or any governmental charges to be paid
out of that Trust.
Distribution Reinvestment Option. You may elect to have each distribution of
income and/or capital reinvested into additional Units of a Trust by notifying
your broker/dealer or bank within the time period required by such entities so
that they can notify the Trustee of your election at least 10 days before any
Record Date. Each later distribution of income and/or capital on your Units
will be reinvested by the Trustee into additional Units of such Trust. There
is no sales charge on Units acquired through the Distribution Reinvestment
Option, as discussed under "Public Offering." This option may not be available
in all states. Each reinvestment plan is subject to availability or limitation
by the Sponsor and each broker/dealer or selling firm. The Sponsor or
broker/dealers may suspend or terminate the offering of a reinvestment plan at
any time. Because a Trust may begin selling Securities nine business days
prior to the Mandatory Termination Date, reinvestment is not available during
this period. Please contact your financial professional for additional
information. PLEASE NOTE THAT EVEN IF YOU REINVEST DISTRIBUTIONS, THEY ARE
STILL CONSIDERED DISTRIBUTIONS FOR INCOME TAX PURPOSES.
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Redeeming Your Units
You may redeem all or a portion of your Units at any time by sending a request
for redemption to your broker/dealer or bank through which you hold your
Units. No redemption fee will be charged, but you are responsible for any
governmental charges that apply. Certain broker/dealers may charge a
transaction fee for processing redemption requests. Two business days after
the day you tender your Units (the "Date of Tender") you will receive cash in
an amount for each Unit equal to the Redemption Price per Unit calculated at
the Evaluation Time on the Date of Tender.
The Date of Tender is considered to be the date on which your redemption
request is received by the Trustee from the broker/dealer or bank through
which you hold your Units (if such day is a day the NYSE is open for trading).
However, if the redemption request is received after 4:00 p.m. Eastern time
(or after any earlier closing time on a day on which the NYSE is scheduled in
advance to close at such earlier time), the Date of Tender is the next day the
NYSE is open for trading.
Any amounts paid on redemption representing income will be withdrawn from the
Income Account if funds are available for that purpose, or from the Capital
Account. All other amounts paid on redemption will be taken from the Capital
Account. The IRS will require the Trustee to withhold a portion of your
redemption proceeds if the Trustee does not have your TIN as generally
discussed under "Income and Capital Distributions."
If you tender for redemption at least 2,500 Units of The Dow(R) Target 5
Portfolio, The Dow(R) Target Dividend Portfolio, S&P Dividend Aristocrats Target
25 Portfolio, S&P Target 24 Portfolio, S&P Target SMid 60 Portfolio, Target
Diversified Dividend Portfolio, Target Double Play Portfolio, Target Global
Dividend Leaders Portfolio, Target Growth Portfolio or Value Line(R) Target 25
Portfolio; or 5,000 Units of the Target Focus Four Portfolio, Target Triad
Portfolio or Target VIP Portfolio or such larger amount as required by your
broker/dealer or bank, rather than receiving cash, you may elect to receive an
In-Kind Distribution in an amount equal to the Redemption Price per Unit by
making this request to your broker/dealer or bank at the time of tender.
However, to be eligible to participate in the In-Kind Distribution option at
redemption, Unit holders must hold their Units through the end of the initial
offering period. No In-Kind Distribution requests submitted during the 30
business days (10 business days in the case of the S&P Dvd. Aristocrats Target
25 Portfolio, S&P Target SMid 60 Portfolio, Target Diversified Dividend
Portfolio, Target Double Play Portfolio, Target Focus Four Portfolio, Target
Global Dividend Leaders Portfolio, Target Growth Portfolio, Target Triad
Portfolio or Target VIP Portfolio) prior to a Trust's Mandatory Termination
Date will be honored. Where possible, the Trustee will make an In-Kind
Distribution by distributing each of the Securities in book-entry form to your
bank's or broker/dealer's account at DTC. This option is generally eligible
only for stocks traded and held in the United States, thus excluding most
foreign Securities. The Trustee will subtract any customary transfer and
registration charges from your In-Kind Distribution. As a tendering Unit
holder, you will receive your pro rata number of whole shares of the eligible
Securities that make up the portfolio, and cash from the Capital Account equal
to the non-eligible Securities and fractional shares to which you are entitled.
If you elect to receive an In-Kind Distribution of Securities from the S&P
Dividend Aristocrats Target 25 Portfolio, S&P Target SMid 60 Portfolio, Target
Diversified Dividend Portfolio, Target Double Play Portfolio, Target Focus
Four Portfolio, Target Global Dividend Leaders Portfolio, Target Growth
Portfolio, Target Triad Portfolio or Target VIP Portfolio, you should be aware
that it will be considered a taxable event at the time you receive the
Securities. See "Tax Status" for additional information.
The Trustee may sell Securities to make funds available for redemption. If
Securities are sold, the size and diversification of a Trust will be reduced.
These sales may result in lower prices than if the Securities were sold at a
different time.
Your right to redeem Units (and therefore, your right to receive payment) may
be delayed:
- If the NYSE is closed (other than customary weekend and holiday closings);
- If the SEC determines that trading on the NYSE is restricted or that an
emergency exists making sale or evaluation of the Securities not reasonably
practical; or
- For any other period permitted by SEC order.
The Trustee is not liable to any person for any loss or damage which may
result from such a suspension or postponement.
The Redemption Price.
The Redemption Price per Unit is determined by the Trustee by:
adding
1. cash in the Income and Capital Accounts of a Trust not designated to
purchase Securities;
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2. the aggregate underlying value of the Securities held in that Trust; and
3. dividends receivable on the Securities trading ex-dividend as of the date
of computation; and
deducting
1. any applicable taxes or governmental charges that need to be paid out of
such Trust;
2. any amounts owed to the Trustee for its advances;
3. estimated accrued expenses of such Trust, if any;
4. cash held for distribution to Unit holders of record of such Trust as of
the business day before the evaluation being made;
5. liquidation costs for foreign Securities, if any; and
6. other liabilities incurred by such Trust; and
dividing
1. the result by the number of outstanding Units of such Trust.
Any remaining deferred sales charge on the Units when you redeem them will be
deducted from your redemption proceeds. In addition, until they are collected,
the Redemption Price per Unit will include estimated organization costs as set
forth under "Fee Table."
Investing in a New Trust
Each Trust's portfolio has been selected on the basis of total return for a
limited time period. When each Trust is about to terminate, you may have the
option to roll your proceeds into the next series of a Trust (the "New
Trusts") if one is available. We intend to create the New Trusts in
conjunction with the termination of the Trusts and plan to apply the same
strategy we used to select the portfolio for the Trusts to the New Trusts.
If you wish to have the proceeds from your Units rolled into a New Trust you
must notify the broker/dealer where your Units are held of your election prior
to that firm's cut-off date. If you make this election you will be considered
a "Rollover Unit holder."
Once all of the Securities are sold in connection with the termination of a
Trust, as described in "Amending or Terminating the Indenture," your proceeds,
less any brokerage fees, governmental charges or other expenses involved in
the sales, will be used to buy units of a New Trust or trust with a similar
investment strategy that you have selected, provided such trusts are
registered and being offered. Accordingly, proceeds may be uninvested for up
to several days. Units purchased with rollover proceeds will generally be
purchased subject to the sales charge set forth in the prospectus for such
trust.
We intend to create New Trust units as quickly as possible, depending on the
availability of the securities contained in a New Trust's portfolio. Rollover
Unit holders will be given first priority to purchase New Trust units. We
cannot, however, assure the exact timing of the creation of New Trust units or
the total number of New Trust units we will create. Any proceeds not invested
on behalf of Rollover Unit holders in New Trust units will be distributed
within a reasonable time after such occurrence. Although we believe that
enough New Trust units can be created, monies in a New Trust may not be fully
invested on the next business day.
Please note that there are certain tax consequences associated with becoming a
Rollover Unit holder. See "Tax Status." We may modify, amend or terminate this
rollover option upon 60 days notice.
Removing Securities from a Trust
The portfolios of the Trusts are not managed. However, we may, but are not
required to, direct the Trustee to dispose of a Security in certain limited
circumstances, including situations in which:
- The issuer of the Security defaults in the payment of a declared dividend;
- Any action or proceeding prevents the payment of dividends;
- There is any legal question or impediment affecting the Security;
- The issuer of the Security has breached a covenant which would affect the
payment of dividends, the issuer's credit standing, or otherwise damage the
sound investment character of the Security;
- The issuer has defaulted on the payment of any other of its outstanding
obligations;
- There has been a public tender offer made for a Security or a merger or
acquisition is announced affecting a Security, and that in our opinion the
sale or tender of the Security is in the best interest of Unit holders;
- The sale of Securities is necessary or advisable (i) in order to maintain
the qualification of a Trust as a "regulated investment company" in the case
of a Trust which has elected to qualify as such or (ii) to provide funds to
make any distribution for a taxable year in order to avoid imposition of any
income or excise taxes on undistributed income in a Trust which is a
"regulated investment company";
- The price of the Security has declined to such an extent, or such other
credit factors exist, that in our opinion keeping the Security would be
harmful to a Trust;
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- As a result of the ownership of the Security, a Trust or its Unit holders
would be a direct or indirect shareholder of a passive foreign investment
company; or
- The sale of the Security is necessary for a Trust to comply with such
federal and/or state securities laws, regulations and/or regulatory actions
and interpretations which may be in effect from time to time.
Except in the limited instance in which a Trust acquires Replacement
Securities, as described in "The FT Series," a Trust structured as a grantor
trust may not, and a Trust structured as a "regulated investment company"
generally will not, acquire any securities or other property other than the
Securities. With respect to Trusts structured as grantor trusts, the Trustee,
on behalf of such Trusts, will reject any offer for new or exchanged
securities or property in exchange for a Security, such as those acquired in a
merger or other transaction. With respect to Trusts structured as "regulated
investment companies," the Trustee, on behalf of such Trusts and at the
direction of the Sponsor, will vote for or against any offer for new or
exchanged securities or property in exchange for a Security, such as those
acquired in a merger or other transaction. If such exchanged securities or
property are nevertheless acquired by a Trust, at our instruction, they will
either be sold or held in such Trust. In making the determination as to
whether to sell or hold the exchanged securities or property we may get advice
from the Portfolio Supervisor. Any proceeds received from the sale of
Securities, exchanged securities or property will be credited to the Capital
Account for distribution to Unit holders or to meet redemption requests. The
Trustee may retain and pay us or an affiliate of ours to act as agent for a
Trust to facilitate selling Securities, exchanged securities or property from
the Trusts. If we or our affiliate act in this capacity, we will be held
subject to the restrictions under the 1940 Act. When acting in an agency
capacity, we may select various broker/dealers to execute securities
transactions on behalf of the Trusts, which may include broker/dealers who
sell Units of the Trusts. We do not consider sales of Units of the Trusts or
any other products sponsored by First Trust as a factor in selecting such
broker/dealers. As authorized by the Indenture, the Trustee may also employ a
subsidiary or affiliate of the Trustee to act as broker in selling such
Securities or property. Each Trust will pay for these brokerage services at
standard commission rates.
The Trustee may sell Securities designated by us, or, absent our direction, at
its own discretion, in order to meet redemption requests or pay expenses. In
designating Securities to be sold, we will try to maintain the proportionate
relationship among the Securities. If this is not possible, the composition
and diversification of a Trust may be changed.
Amending or Terminating the Indenture
Amendments. The Indenture may be amended by us and the Trustee without your
consent:
- To cure ambiguities;
- To correct or supplement any defective or inconsistent provision;
- To make any amendment required by any governmental agency; or
- To make other changes determined not to be adverse to your best interests
(as determined by us and the Trustee).
Termination. As provided by the Indenture, each Trust will terminate on the
Mandatory Termination Date as stated in the "Summary of Essential
Information." The Trusts may be terminated earlier:
- Upon the consent of 100% of the Unit holders of a Trust;
- If the value of the Securities owned by such Trust as shown by any
evaluation is less than the lower of $2,000,000 or 20% of the total value of
Securities deposited in such Trust during the initial offering period
("Discretionary Liquidation Amount"); or
- In the event that Units of a Trust not yet sold aggregating more than 60% of
the Units of such Trust are tendered for redemption by underwriters, including
the Sponsor.
If a Trust is terminated due to this last reason, we will refund your entire
sales charge; however, termination of a Trust before the Mandatory Termination
Date for any other stated reason will result in all remaining unpaid deferred
sales charges on your Units being deducted from your termination proceeds. For
various reasons, a Trust may be reduced below the Discretionary Liquidation
Amount and could therefore be terminated before the Mandatory Termination Date.
Unless terminated earlier, the Trustee will begin to sell Securities in
connection with the termination of a Trust during the period beginning nine
business days prior to, and no later than, the Mandatory Termination Date. We
will determine the manner and timing of the sale of Securities. Because the
Trustee must sell the Securities within a relatively short period of time, the
sale of Securities as part of the termination process may result in a lower
sales price than might otherwise be realized if such sale were not required at
this time.
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If you do not elect to participate in the rollover option, you will receive a
cash distribution from the sale of the remaining Securities, along with your
interest in the Income and Capital Accounts, within a reasonable time after
your Trust is terminated. The Trustee will deduct from a Trust any accrued
costs, expenses, advances or indemnities provided for by the Indenture,
including estimated compensation of the Trustee and costs of liquidation and
any amounts required as a reserve to pay any taxes or other governmental
charges.
Information on the Sponsor, Trustee and Evaluator
The Sponsor.
We, First Trust Portfolios L.P., specialize in the underwriting, trading and
wholesale distribution of unit investment trusts under the "First Trust" brand
name and other securities. An Illinois limited partnership formed in 1991, we
took over the First Trust product line and act as Sponsor for successive
series of:
- The First Trust Combined Series
- FT Series (formerly known as The First Trust Special Situations Trust)
- The First Trust Insured Corporate Trust
- The First Trust of Insured Municipal Bonds
- The First Trust GNMA
The First Trust product line commenced with the first insured unit investment
trust in 1974. To date we have deposited more than $460 billion in First Trust
unit investment trusts. Our employees include a team of professionals with
many years of experience in the unit investment trust industry.
We are a member of FINRA and SIPC. Our principal offices are at 120 East
Liberty Drive, Wheaton, Illinois 60187; telephone number 800-621-1675. As of
December 31, 2019, the total partners' capital of First Trust Portfolios L.P.
was $49,108,615.
This information refers only to us and not to the Trusts or to any series of
the Trusts or to any other dealer. We are including this information only to
inform you of our financial responsibility and our ability to carry out our
contractual obligations. We will provide more detailed financial information
on request.
Code of Ethics. The Sponsor and the Trusts have adopted a code of ethics
requiring the Sponsor's employees who have access to information on Trust
transactions to report personal securities transactions. The purpose of the
code is to avoid potential conflicts of interest and to prevent fraud,
deception or misconduct with respect to the Trusts.
The Trustee.
The Trustee is The Bank of New York Mellon, a trust company organized under
the laws of New York. The Bank of New York Mellon has its unit investment
trust division offices at 240 Greenwich Street, New York, New York 10286,
telephone 800-813-3074. If you have questions regarding your account or your
Trust, please contact the Trustee at its unit investment trust division
offices or your financial adviser. The Sponsor does not have access to
individual account information. The Bank of New York Mellon is subject to
supervision and examination by the Superintendent of the New York State
Department of Financial Services and the Board of Governors of the Federal
Reserve System, and its deposits are insured by the Federal Deposit Insurance
Corporation to the extent permitted by law.
The Trustee has not participated in selecting the Securities; it only provides
administrative services.
Limitations of Liabilities of Sponsor and Trustee.
Neither we nor the Trustee will be liable for taking any action or for not
taking any action in good faith according to the Indenture. We will also not
be accountable for errors in judgment. We will only be liable for our own
willful misfeasance, bad faith, gross negligence (ordinary negligence in the
Trustee's case) or reckless disregard of our obligations and duties. The
Trustee is not liable for any loss or depreciation when the Securities are
sold. If we fail to act under the Indenture, the Trustee may do so, and the
Trustee will not be liable for any action it takes in good faith under the
Indenture.
The Trustee will not be liable for any taxes or other governmental charges or
interest on the Securities which the Trustee may be required to pay under any
present or future law of the United States or of any other taxing authority
with jurisdiction. Also, the Indenture states other provisions regarding the
liability of the Trustee.
If we do not perform any of our duties under the Indenture or are not able to
act or become bankrupt, or if our affairs are taken over by public
authorities, then the Trustee may:
- Appoint a successor sponsor, paying them a reasonable rate not more than
that stated by the SEC;
- Terminate the Indenture and liquidate the Trusts; or
- Continue to act as Trustee without terminating the Indenture.
Page 80
The Evaluator.
The Evaluator is First Trust Advisors L.P., an Illinois limited partnership
formed in 1991 and an affiliate of the Sponsor. The Evaluator's address is 120
East Liberty Drive, Wheaton, Illinois 60187.
The Trustee, Sponsor and Unit holders may rely on the accuracy of any
evaluation prepared by the Evaluator. The Evaluator will make determinations
in good faith based upon the best available information, but will not be
liable to the Trustee, Sponsor or Unit holders for errors in judgment.
Other Information
Legal Opinions.
Our counsel is Chapman and Cutler LLP, 111 W. Monroe St., Chicago, Illinois
60603. They have passed upon the legality of the Units offered hereby and
certain matters relating to federal tax law. Carter Ledyard & Milburn LLP acts
as the Trustee's counsel, as well as special New York tax counsel for the
Trusts identified as Grantor Trusts.
Experts.
The Trusts' statements of net assets, including the schedules of investments,
as of the opening of business on the Initial Date of Deposit included in this
prospectus, have been audited by Deloitte & Touche LLP, an independent
registered public accounting firm, as stated in their report appearing herein,
and are included in reliance upon the report of such firm given upon their
authority as experts in accounting and auditing.
Supplemental Information.
If you write or call the Sponsor, you will receive free of charge supplemental
information about this Series, which has been filed with the SEC and to which
we have referred throughout. This information states more specific details
concerning the nature, structure and risks of this product.
Nasdaq, Inc.
The Target VIP Portfolio is not sponsored, endorsed, sold or promoted by
Nasdaq, Inc. (including its affiliates) ("Nasdaq," with its affiliates, is
referred to as the "Corporations"). The Corporations have not passed on the
legality or suitability of, or the accuracy or adequacy of descriptions and
disclosures relating to the Target VIP Portfolio. The Corporations make no
representation or warranty, express or implied, to the owners of Units of the
Target VIP Portfolio or any member of the public regarding the advisability of
investing in securities generally or in the Target VIP Portfolio particularly,
or the ability of the Nasdaq-100 Index(R) to track general stock market
performance. The Corporations' only relationship to the Sponsor ("Licensee")
is in the licensing of the Nasdaq 100(R), Nasdaq-100 Index(R) and Nasdaq(R)
trademarks or service marks, and certain trade names of the Corporations and
the use of the Nasdaq-100 Index(R) which is determined, composed and
calculated by Nasdaq without regard to Licensee or the Target VIP Portfolio.
Nasdaq has no obligation to take the needs of the Licensee, the owners of
Units of the Target VIP Portfolio into consideration in determining, composing
or calculating the Nasdaq-100 Index(R). The Corporations are not responsible
for and have not participated in the determination of the timing of, prices at
or quantities of the Target VIP Portfolio to be issued or in the determination
or calculation of the equation by which the Target VIP Portfolio is to be
converted into cash. The Corporations have no liability in connection with the
administration, marketing or trading of the Target VIP Portfolio.
THE CORPORATIONS DO NOT GUARANTEE THE ACCURACY AND/OR UNINTERRUPTED
CALCULATION OF THE NASDAQ-100 INDEX(R) OR ANY DATA INCLUDED THEREIN. THE
CORPORATIONS MAKE NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE
OBTAINED BY THE LICENSEE, OWNERS OF THE TARGET VIP PORTFOLIO OR ANY OTHER
PERSON OR ENTITY FROM THE USE OF THE NASDAQ-100 INDEX(R) OR ANY DATA INCLUDED
THEREIN. THE CORPORATIONS MAKE NO EXPRESS OR IMPLIED WARRANTIES AND EXPRESSLY
DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE
OR USE WITH RESPECT TO THE NASDAQ-100 INDEX(R) OR ANY DATA INCLUDED THEREIN.
WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL THE CORPORATIONS HAVE
ANY LIABILITY FOR ANY LOST PROFITS OR SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT
OR CONSEQUENTIAL DAMAGES, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
Page 81
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Page 83
First Trust(R)
Dow(R) Target 5 4Q '20 - Term 1/7/22
Dow(R) Target Dvd. 4Q '20 - Term 1/7/22
S&P Dvd. Aristocrats Target 25 4Q '20 - Term 1/7/22
S&P Target 24 4Q '20 - Term 1/7/22
S&P Target SMid 60 4Q '20 - Term 1/7/22
Target Divsd. Dvd. 4Q '20 - Term 1/7/22
Target Dbl. Play 4Q '20 - Term 1/7/22
Target Focus 4 4Q '20 - Term 1/7/22
Target Global Dvd. Leaders 4Q '20 - Term 1/7/22
Target Growth 4Q '20 - Term 1/7/22
Target Triad 4Q '20 - Term 1/7/22
Target VIP 4Q '20 - Term 1/7/22
Value Line(R) Target 25 4Q '20 - Term 1/7/22
FT 8950
Sponsor:
First Trust Portfolios L.P.
Member SIPC o Member FINRA
120 East Liberty Drive
Wheaton, Illinois 60187
800-621-1675
Trustee:
The Bank of New York Mellon
240 Greenwich Street
New York, New York 10286
800-813-3074
24-Hour Pricing Line: 800-446-0132
Please refer to the "Summary of Essential Information" for each Trust's
Product Code.
________________________
When Units of the Trusts are no longer available, this prospectus may be used
as a preliminary prospectus for a future series, in which case you should note
the following:
THE INFORMATION IN THE PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. WE MAY
NOT SELL, OR ACCEPT OFFERS TO BUY, SECURITIES OF A FUTURE SERIES UNTIL THAT
SERIES HAS BECOME EFFECTIVE WITH THE SEC. NO SECURITIES CAN BE SOLD IN ANY
STATE WHERE A SALE WOULD BE ILLEGAL.
________________________
This prospectus contains information relating to the above-mentioned unit
investment trusts, but does not contain all of the information about this
investment company as filed with the SEC in Washington, D.C. under the:
- Securities Act of 1933 (file no. 333-240876) and
- Investment Company Act of 1940 (file no. 811-05903)
Information about the Trusts, including their Codes of Ethics, can be reviewed
and copied at the SEC's Public Reference Room in Washington, D.C. Information
regarding the operation of the SEC's Public Reference Room may be obtained by
calling the SEC at 202-942-8090.
Information about the Trusts is available on the EDGAR Database on the SEC's
Internet site at www.sec.gov.
To obtain copies at prescribed rates -
Write: Public Reference Section of the SEC,
100 F Street, N.E.,
Washington, D.C. 20549
e-mail address: publicinfo@sec.gov
October 9, 2020
PLEASE RETAIN THIS PROSPECTUS FOR FUTURE REFERENCE
Page 84
First Trust(R)
The FT Series
Information Supplement
This Information Supplement provides additional information concerning the
structure, operations and risks of the unit investment trusts contained in FT
8950 not found in the prospectus for the Trusts. This Information Supplement
is not a prospectus and does not include all of the information you should
consider before investing in the Trusts. This Information Supplement should be
read in conjunction with the prospectus for the Trust in which you are
considering investing.
This Information Supplement is dated October 9, 2020. Capitalized terms have
been defined in the prospectus.
Table of Contents
Dow Jones & Company, Inc. 1
Nasdaq, Inc. 2
Value Line Publishing LLC 3
New York Stock Exchange 3
Risk Factors
Securities 3
Dividends 4
REITs 4
Foreign Issuers 5
Emerging Markets 6
Exchange Rates 7
Small and/or Mid Capitalization Companies 10
Concentrations
Concentration Risk 10
Consumer Staples 10
Financials 11
Industrials 12
Information Technology 12
Utilities 13
Securities 14
The Dow(R) DART 5 Strategy Stocks 14
The Dow(R) Target 5 Strategy Stocks 14
The Dow(R) Target Dividend Strategy Stocks 15
European Target 20 Strategy Stocks 16
Nasdaq(R) Target 15 Strategy Stocks 17
NYSE(R) International Target 25 Strategy Stocks 18
S&P Dividend Aristocrats Target 25 Strategy Stocks 20
S&P Target 24 Strategy Stocks 21
S&P Target SMid 60 Strategy Stocks 23
Target Diversified Dividend Strategy Stocks 26
Target Global Dividend Leaders Strategy Stocks 29
Target Growth Strategy Stocks 32
Target Small-Cap Strategy Stocks 34
Value Line(R) Target 25 Strategy Stocks 36
Dow Jones & Company, Inc.
The Dow Jones Industrial Average, Dow Jones U.S. Select Dividend Index(sm),
S&P 500(R) Index, S&P 500(R) Dividend Aristocrats Index, S&P MidCap 400(R)
Index and S&P SmallCap 600(R) Index (collectively, the "Licensed Indexes") are
products of S&P Dow Jones Indices LLC ("SPDJI"), and have been licensed for
use by First Trust Portfolios L.P. Standard & Poor's(R), S&P(R), S&P 500(R),
S&P Dividend Aristocrats, S&P MidCap 400(R) and S&P SmallCap 600(R) are
registered trademarks of Standard & Poor's Financial Services LLC ("S&P");
DJIA(R), The Dow(R), Dow Jones(R), Dow Jones Industrial Average and Dow Jones
U.S. Select Dividend Index(sm) are trademarks of Dow Jones Trademark Holdings
LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI
and sublicensed for certain purposes by First Trust Portfolios L.P. The
Trusts, in particular The Dow(R) Target 5 Portfolio, The Dow(R) Target
Dividend Portfolio, Target Double Play Portfolio, S&P Dvd. Aristocrats Target
25 Portfolio, S&P Target 24 Portfolio, S&P Target SMid 60 Portfolio, Target
Page 1
Focus Four Portfolio and the Target VIP Portfolio (collectively, the "Trusts")
are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of
their respective affiliates (collectively, "S&P Dow Jones Indices"). S&P Dow
Jones Indices makes no representation or warranty, express or implied, to the
owners of the Trusts or any member of the public regarding the advisability of
investing in securities generally or in the Trusts particularly or the ability
of the Licensed Indexes to track general market performance. S&P Dow Jones
Indices' only relationship to First Trust Advisors L.P. with respect to the
Licensed Indexes is the licensing of such indexes and certain trademarks,
service marks and/or trade names of S&P Dow Jones Indices or its licensors.
The Licensed Indexes are determined, composed and calculated by S&P Dow Jones
Indices without regard to First Trust Advisors L.P. or the Trusts. S&P Dow
Jones Indices have no obligation to take the needs of First Trust Advisors
L.P. or the owners of the Trusts into consideration in determining, composing
or calculating the Licensed Indexes. S&P Dow Jones Indices is not responsible
for and has not participated in the determination of the prices, and amount of
the Trusts or the timing of the issuance or sale of the Trusts or in the
determination or calculation of the equation by which the Trusts are to be
converted into cash, surrendered or redeemed, as the case may be. S&P Dow
Jones Indices has no obligation or liability in connection with the
administration, marketing or trading of the Trusts. There is no assurance that
investment products based on the Licensed Indexes will accurately track index
performance or provide positive investment returns. S&P Dow Jones Indices LLC
is not an investment advisor. Inclusion of a security within an index is not a
recommendation by S&P Dow Jones Indices to buy, sell, or hold such security,
nor is it considered to be investment advice. Notwithstanding the foregoing,
CME Group Inc. and its affiliates, a shareholder of S&P Dow Jones Indices LLC,
may independently issue and/or sponsor financial products unrelated to Trusts,
but which may be similar to and competitive with the Trusts. In addition, CME
Group Inc. and its affiliates may trade financial products which are linked to
the performance of the Dow Jones Industrial Average and the S&P 500(R) Index.
S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS
AND/OR THE COMPLETENESS OF THE LICENSED INDEXES OR ANY DATA RELATED THERETO OR
ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION
(INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES
INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS,
OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR
IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY
FIRST TRUST ADVISORS L.P., OWNERS OF THE TRUSTS, OR ANY OTHER PERSON OR ENTITY
FROM THE USE OF THE LICENSED INDEXES OR WITH RESPECT TO ANY DATA RELATED
THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL
S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL,
PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF
PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT
LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY
AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND FIRST TRUST
ADVISORS L.P., OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.
Nasdaq, Inc.
The "Nasdaq 100(R)," "Nasdaq-100 Index(R)," and "Nasdaq(R)" are trade or
service marks of Nasdaq, Inc. (which with its affiliates is the
"Corporations") and are licensed for use by us. The Target VIP Portfolio has
not been passed on by the Corporations as to its legality or suitability. The
Target VIP Portfolio is not issued, endorsed, sold, or promoted by the
Corporations. The Corporations make no warranties and bear no liability with
respect to the Target VIP Portfolio.
Value Line Publishing LLC
Value Line Publishing LLC's ("VLP") only relationship to First Trust
Portfolios L.P. and/or First Trust Advisors L.P. is VLP's licensing to First
Trust Portfolios L.P. and/or First Trust Advisors L.P. of certain VLP
trademarks and trade names and the Value Line(R) Timeliness(TM) Ranking System
(the "System"), which is composed by VLP without regard to First Trust
Portfolios L.P. or First Trust Advisors L.P., this product or any investor.
VLP has no obligation to take the needs of First Trust Portfolios L.P. and/or
First Trust Advisors L.P. or any investor in the product into consideration in
composing the System. The product results may differ from the hypothetical or
Page 2
published results of the Value Line Timeliness Ranking System. VLP is not
responsible for and has not participated in the determination of the prices
and composition of the product or the timing of the issuance for sale of the
product or in the calculation of the equations by which the product is to be
converted into cash.
VLP MAKES NO WARRANTY CONCERNING THE SYSTEM, EXPRESS OR IMPLIED, INCLUDING BUT
NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR ANY PERSON'S INVESTMENT PORTFOLIO, OR ANY IMPLIED
WARRANTIES ARISING FROM USAGE OF TRADE, COURSE OF DEALING OR COURSE OF
PERFORMANCE, AND VLP MAKES NO WARRANTY AS TO THE POTENTIAL PROFITS OR ANY
OTHER BENEFITS THAT MAY BE ACHIEVED BY USING THE SYSTEM OR ANY INFORMATION OR
MATERIALS GENERATED THEREFROM. VLP DOES NOT WARRANT THAT THE SYSTEM WILL MEET
ANY REQUIREMENTS OR THAT IT WILL BE ACCURATE OR ERROR-FREE. VLP ALSO DOES NOT
GUARANTEE ANY USES, INFORMATION, DATA OR OTHER RESULTS GENERATED FROM THE
SYSTEM OR THE PRODUCT. VLP HAS NO OBLIGATION OR LIABILITY (I) IN CONNECTION
WITH THE ADMINISTRATION, MARKETING OR TRADING OF THE PRODUCT; OR (II) FOR ANY
LOSS, DAMAGE, COST OR EXPENSE SUFFERED OR INCURRED BY ANY INVESTOR OR OTHER
PERSON OR ENTITY IN CONNECTION WITH THIS PRODUCT, AND IN NO EVENT SHALL VLP BE
LIABLE FOR ANY LOST PROFITS OR OTHER CONSEQUENTIAL, SPECIAL, PUNITIVE,
INCIDENTAL, INDIRECT OR EXEMPLARY DAMAGES IN CONNECTION WITH THE PRODUCT.
New York Stock Exchange
"NYSE(R)" is a registered service/trademark of ICE Data Indices, LLC or its
affiliates and has been licensed, along with, "NYSE International 100
Index(SM)" ("Index") for use by First Trust Portfolios, L.P. ICE Data Indices,
LLC has no relationship to First Trust Portfolios L.P. other than the
licensing of the "NYSE International 100 Index(SM)" and the trademark and
service mark referenced above for use in connection with the NYSE(R)
International Target 25 Strategy.
ICE Data Indices, LLC does not: sponsor, endorse, sell or promote the NYSE(R)
International Target 25 Strategy; recommend that any person invest in the \
NYSE(R) International Target 25 Strategy or any other securities; have any
responsibility or liability for or make any decision about the timing, amount
or pricing of the NYSE(R) International Target 25 Strategy; have any
responsibility or liability for the administration, management or marketing of
the NYSE(R) International Target 25 Strategy; consider the needs of the NYSE(R)
International Target 25 Strategy or the owners of the NYSE(R) International
Target 25 Strategy in determining, composing or calculating the NYSE
International 100 Index(SM) or have any obligation to do so.
ICE Data Indices, LLC will not have any liability in connection with the NYSE(R)
International Target 25 Strategy. Specifically, ICE Data Indices, LLC does
not make any warranty, express or implied, and ICE Data Indices, LLC disclaims
any warranty about: the results to be obtained by the NYSE(R) International
Target 25 Strategy, the owners of the NYSE(R) International Target 25
Strategy, or any other relevant person in connection with the use of the Index
and the data included in the Index; the accuracy or completeness of the Index
and its data; the merchantability or fitness for a particular purpose or use
of the Index and its data. ICE Data Indices, LLC will have no liability for
any errors, omissions or interruptions in the Index or its data. Under no
circumstances will ICE Data Indices, LLC be liable for any lost profits or
indirect, punitive, special or consequential damages or losses, even if ICE
Data Indices, LLC knows that they might occur. The licensing agreement between
First Trust Portfolios L.P. and ICE Data Indices, LLC is solely for their
benefit and not for the benefit of the owners of the NYSE(R) International
Target 25 Strategy or any other third parties.
Risk Factors
Securities. An investment in Units should be made with an understanding of the
risks which an investment in common stocks entails, including the risk that
the financial condition of the issuers of the Securities or the general
condition of the relevant stock market may worsen, and the value of the
Securities and therefore the value of the Units may decline. Common stocks are
especially susceptible to general stock market movements and to volatile
increases and decreases of value, as market confidence in and perceptions of
the issuers change. These perceptions are based on unpredictable factors,
including expectations regarding government, economic, monetary and fiscal
policies, inflation and interest rates, economic expansion or contraction, and
global or regional political, economic or banking crises.
Page 3
Dividends. Shareholders of common stocks have rights to receive payments from
the issuers of those common stocks that are generally subordinate to those of
creditors of, or holders of debt obligations or preferred stocks of, such
issuers. Shareholders of common stocks have a right to receive dividends only
when and if, and in the amounts, declared by the issuer's board of directors
and have a right to participate in amounts available for distribution by the
issuer only after all other claims on the issuer have been paid or provided
for. Common stocks do not represent an obligation of the issuer and,
therefore, do not offer any assurance of income or provide the same degree of
protection of capital as do debt securities. The issuance of additional debt
securities or preferred stock will create prior claims for payment of
principal, interest and dividends which could adversely affect the ability and
inclination of the issuer to declare or pay dividends on its common stock or
the rights of holders of common stock with respect to assets of the issuer
upon liquidation or bankruptcy. Cumulative preferred stock dividends must be
paid before common stock dividends, and any cumulative preferred stock
dividend omitted is added to future dividends payable to the holders of
cumulative preferred stock. Preferred stockholders are also generally entitled
to rights on liquidation which are senior to those of common stockholders.
REITs. An investment in Units of the S&P Target SMid 60 Portfolio, the Target
Focus Four Portfolio and the Target Global Dividend Leaders Portfolio should
be made with an understanding of risks inherent in an investment in U.S.-based
REITs specifically and real estate generally (in addition to securities market
risks). Generally, these include economic recession, the cyclical nature of
real estate markets, competitive overbuilding, unusually adverse weather
conditions, changing demographics, changes in governmental regulations
(including tax laws and environmental, building, zoning and sales
regulations), increases in real estate taxes or costs of material and labor,
the inability to secure performance guarantees or insurance as required, the
unavailability of investment capital and the inability to obtain construction
financing or mortgage loans at rates acceptable to builders and purchasers of
real estate. Additional risks include an inability to reduce expenditures
associated with a property (such as mortgage payments and property taxes) when
rental revenue declines, and possible loss upon foreclosure of mortgaged
properties if mortgage payments are not paid when due.
REITs are financial vehicles that have as their objective the pooling of
capital from a number of investors in order to participate directly in real
estate ownership or financing. REITs are generally fully integrated operating
companies that have interests in income-producing real estate. Equity REITs
emphasize direct property investment, holding their invested assets primarily
in the ownership of real estate or other equity interests. REITs obtain
capital funds for investment in underlying real estate assets by selling debt
or equity securities in the public or institutional capital markets or by bank
borrowing. Thus, the returns on common equities of REITs will be significantly
affected by changes in costs of capital and, particularly in the case of
highly "leveraged" REITs (i.e., those with large amounts of borrowings
outstanding), by changes in the level of interest rates. The objective of an
equity REIT is to purchase income-producing real estate properties in order to
generate high levels of cash flow from rental income and a gradual asset
appreciation, and they typically invest in properties such as office, retail,
industrial, hotel and apartment buildings and healthcare facilities.
REITs are a creation of the tax law. REITs essentially operate as a
corporation or business trust with the advantage of exemption from corporate
income taxes provided the REIT satisfies the requirements of Sections 856
through 860 of the Internal Revenue Code. The major tests for tax-qualified
status are that the REIT (i) be managed by one or more trustees or directors,
(ii) issue shares of transferable interest to its owners, (iii) have at least
100 shareholders, (iv) have no more than 50% of the shares held by five or
fewer individuals, (v) invest substantially all of its capital in real estate
related assets and derive substantially all of its gross income from real
estate related assets and (vi) distributed at least 95% of its taxable income
to its shareholders each year. If a REIT should fail to qualify for such tax
status, the related shareholders (including such Trust) could be adversely
affected by the resulting tax consequences.
The underlying value of the Securities and a Trust's ability to make
distributions to Unit holders may be adversely affected by changes in national
economic conditions, changes in local market conditions due to changes in
general or local economic conditions and neighborhood characteristics,
increased competition from other properties, obsolescence of property, changes
in the availability, cost and terms of mortgage funds, the impact of present
or future environmental legislation and compliance with environmental laws,
the ongoing need for capital improvements, particularly in older properties,
changes in real estate tax rates and other operating expenses, regulatory and
economic impediments to raising rents, adverse changes in governmental rules
and fiscal policies, dependency on management skill, civil unrest, acts of
God, including earthquakes, fires and other natural disasters (which may
result in uninsured losses), acts of war, adverse changes in zoning laws, and
other factors which are beyond the control of the issuers of REITs. The value
Page 4
of REITs may at times be particularly sensitive to devaluation in the event of
rising interest rates.
REITs may concentrate investments in specific geographic areas or in specific
property types, i.e., hotels, shopping malls, residential complexes, office
buildings and timberlands. The impact of economic conditions on REITs can also
be expected to vary with geographic location and property type. Investors
should be aware that REITs may not be diversified and are subject to the risks
of financing projects. REITs are also subject to defaults by borrowers, self-
liquidation, the market's perception of the REIT industry generally, and the
possibility of failing to qualify for pass-through of income under the
Internal Revenue Code, and to maintain exemption from the Investment Company
Act of 1940. A default by a borrower or lessee may cause a REIT to experience
delays in enforcing its right as mortgagee or lessor and to incur significant
costs related to protecting its investments. In addition, because real estate
generally is subject to real property taxes, REITs may be adversely affected
by increases or decreases in property tax rates and assessments or
reassessments of the properties underlying REITs by taxing authorities.
Furthermore, because real estate is relatively illiquid, the ability of REITs
to vary their portfolios in response to changes in economic and other
conditions may be limited and may adversely affect the value of the Units.
There can be no assurance that any REIT will be able to dispose of its
underlying real estate assets when advantageous or necessary.
The issuer of REITs generally maintains comprehensive insurance on presently
owned and subsequently acquired real property assets, including liability,
fire and extended coverage. However, certain types of losses may be
uninsurable or not be economically insurable as to which the underlying
properties are at risk in their particular locales. There can be no assurance
that insurance coverage will be sufficient to pay the full current market
value or current replacement cost of any lost investment. Various factors
might make it impracticable to use insurance proceeds to replace a facility
after it has been damaged or destroyed. Under such circumstances, the
insurance proceeds received by a REIT might not be adequate to restore its
economic position with respect to such property.
Under various environmental laws, a current or previous owner or operator of
real property may be liable for the costs of removal or remediation of
hazardous or toxic substances on, under or in such property. Such laws often
impose liability whether or not the owner or operator caused or knew of the
presence of such hazardous or toxic substances and whether or not the storage
of such substances was in violation of a tenant's lease. In addition, the
presence of hazardous or toxic substances, or the failure to remediate such
property properly, may adversely affect the owner's ability to borrow using
such real property as collateral. No assurance can be given that REITs may not
be presently liable or potentially liable for any such costs in connection
with real estate assets they presently own or subsequently acquire. Certain of
the REITs may also be Mortgage REITs. Mortgage REITs are companies that
provide financing for real estate by purchasing or originating mortgages and
mortgage-backed securities and earn income from the interest on these
investments. Mortgage REITs are also subject to many of the same risks
associated with investments in other REITs and to real estate market conditions.
Foreign Issuers. The following section applies to individual Trusts which
contain Securities issued by, or invest in securities issued by, foreign
entities. Since certain of the Securities held by the Trust consist of, or
invest in, securities issued by foreign entities, an investment in the Trust
involves certain investment risks that are different in some respects from an
investment in a trust which invests solely in the securities of domestic
entities. These investment risks include future political or governmental
restrictions which might adversely affect the payment or receipt of payment of
dividends on the relevant Securities, the possibility that the financial
condition of the issuers of the Securities may become impaired or that the
general condition of the relevant stock market may worsen (both of which would
contribute directly to a decrease in the value of the Securities and thus in
the value of the Units), the limited liquidity and relatively small market
capitalization of the relevant securities market, expropriation or
confiscatory taxation, economic uncertainties and foreign currency
devaluations and fluctuations. In addition, for foreign issuers that are not
subject to the reporting requirements of the Securities Exchange Act of 1934,
as amended, there may be less publicly available information than is available
from a domestic issuer. Also, foreign issuers are not necessarily subject to
uniform accounting, auditing and financial reporting standards, practices and
requirements comparable to those applicable to domestic issuers. The
securities of many foreign issuers are less liquid and their prices more
volatile than securities of comparable domestic issuers. In addition, fixed
brokerage commissions and other transaction costs on foreign securities
exchanges are generally higher than in the United States and there is
generally less government supervision and regulation of exchanges, brokers and
issuers in foreign countries than there is in the United States. However, due
to the nature of the issuers of the Securities selected for the Trust, the
Sponsor believes that adequate information will be available to allow the
Supervisor to provide portfolio surveillance for the Trust.
Page 5
Securities issued by non-U.S. issuers may pay interest and/or dividends in
foreign currencies and may be principally traded in foreign currencies.
Therefore, there is a risk that the U.S. dollar value of these interest and/or
dividend payments and/or securities will vary with fluctuations in foreign
exchange rates.
On the basis of the best information available to the Sponsor at the present
time, none of the Securities in the Trust are subject to exchange control
restrictions under existing law which would materially interfere with payment
to the Trust of dividends due on, or proceeds from the sale of, the
Securities. However, there can be no assurance that exchange control
regulations might not be adopted in the future which might adversely affect
payment to the Trust. The adoption of exchange control regulations and other
legal restrictions could have an adverse impact on the marketability of
international securities in the Trust and on the ability of the Trust to
satisfy its obligation to redeem Units tendered to the Trustee for redemption.
In addition, restrictions on the settlement of transactions on either the
purchase or sale side, or both, could cause delays or increase the costs
associated with the purchase and sale of the foreign Securities and
correspondingly could affect the price of the Units.
Investors should be aware that it may not be possible to buy all Securities at
the same time because of the unavailability of any Security, and restrictions
applicable to the Trust relating to the purchase of a Security by reason of
the federal securities laws or otherwise.
Foreign securities generally have not been registered under the Securities Act
of 1933 and may not be exempt from the registration requirements of such Act.
Sales of non-exempt Securities by the Trust in the United States securities
markets are subject to severe restrictions and may not be practicable.
Accordingly, sales of these Securities by the Trust will generally be effected
only in foreign securities markets. Although the Sponsor does not believe that
the Trust will encounter obstacles in disposing of the Securities, investors
should realize that the Securities may be traded in foreign countries where
the securities markets are not as developed or efficient and may not be as
liquid as those in the United States. The value of the Securities will be
adversely affected if trading markets for the Securities are limited or absent.
Emerging Markets. The following section applies to individual Trusts which
contain securities issued by, or invest in securities issued by, companies
headquartered or incorporated in countries considered to be emerging markets. An
investment in Units of these Trusts should be made with an understanding of the
risks inherent with investing in certain smaller and emerging markets. Compared
to more mature markets, some emerging markets may have a low level of
regulation, enforcement of regulations and monitoring of investors’ activities.
Those activities may include practices such as trading on material non-public
information. The securities markets of developing countries are not as large as
the more established securities markets and have substantially less trading
volume, resulting in a lack of liquidity and high price volatility. There may be
a high concentration of market capitalization and trading volume in a small
number of issuers representing a limited number of industries as well as a high
concentration of investors and financial intermediaries. These factors may
adversely affect the timing and pricing of the acquisition or disposal of
securities.
In certain emerging markets, registrars are not subject to effective
government supervision nor are they always independent from issuers. The
possibility of fraud, negligence, undue influence being exerted by the issuer or
refusal to recognize ownership exists, which, along with other factors, could
result in the registration of a shareholding being completely lost. Investors
should therefore be aware that the Trust could suffer loss arising from these
registration problems. In addition, the legal remedies in emerging markets are
often more limited than the remedies available in the United States.
Practices pertaining to the settlement of securities transactions in emerging
markets involve higher risks than those in developed markets, in large part
because of the need to use brokers and counterparties who are less well
capitalized, and custody and registration of assets in some countries may be
unreliable. As a result, brokerage commissions and other fees are generally
higher in emerging markets and the procedures and rules governing foreign
transactions and custody may involve delays in payment, delivery or recovery of
money or investments. Delays in settlement could result in investment
opportunities being missed if the Trust is unable to acquire or dispose of a
security. Certain foreign investments may also be less liquid and more volatile
than U.S. investments, which may mean at times that such investments are unable
to be sold at desirable prices.
Political and economic structures in emerging markets often change rapidly,
which may cause instability. In adverse social and political circumstances,
governments have been involved in policies of expropriation, confiscatory
taxation, nationalization, intervention in the securities market and trade
settlement, and imposition of foreign investment restrictions and exchange
controls, and these could be repeated in the future. In addition to withholding
taxes on investment income, some governments in emerging markets may impose
different capital gains taxes on foreign investors. Foreign investments may also
be subject to the risks of seizure by a foreign government and the imposition of
restrictions on the exchange or export of foreign currency. Additionally, some
governments exercise substantial influence over the private economic sector and
the political and social uncertainties that exist for many developing countries
are considerable.
Another risk common to most developing countries is that the
economy is heavily export oriented and, accordingly, is dependent upon
international trade. The existence of overburdened infrastructures and obsolete
financial systems also presents risks in certain countries, as do environmental
problems. Certain economies also depend, to a large degree, upon exports of
primary commodities and, therefore, are vulnerable to changes in commodity
prices which, in turn, may be affected by a variety of factors.
Exchange Rates. The Target VIP Portfolio contains Securities that are
principally traded in foreign currencies and as such, involve investment risks
that are substantially different from an investment in a fund which invests in
securities that are principally traded in United States dollars. The United
States dollar value of the portfolio (and hence of the Units) and of the
distributions from the portfolio will vary with fluctuations in the United
States dollar foreign exchange rates for the relevant currencies. Most foreign
currencies have fluctuated widely in value against the United States dollar
for many reasons, including supply and demand of the respective currency, the
rate of inflation in the respective economies compared to the United States,
the impact of interest rate differentials between different currencies on the
movement of foreign currency rates, the balance of imports and exports goods
and services, the soundness of the world economy and the strength of the
respective economy as compared to the economies of the United States and other
countries.
The post-World War II international monetary system was, until 1973, dominated
by the Bretton Woods Treaty which established a system of fixed exchange rates
and the convertibility of the United States dollar into gold through foreign
central banks. Starting in 1971, growing volatility in the foreign exchange
markets caused the United States to abandon gold convertibility and to effect
a small devaluation of the United States dollar. In 1973, the system of fixed
exchange rates between a number of the most important industrial countries of
the world, among them the United States and most Western European countries,
was completely abandoned. Subsequently, major industrialized countries have
adopted "floating" exchange rates, under which daily currency valuations
depend on supply and demand in a freely fluctuating international market. Many
smaller or developing countries have continued to "peg" their currencies to
the United States dollar although there has been some interest in recent years
in "pegging" currencies to "baskets" of other currencies or to a Special
Drawing Right administered by the International Monetary Fund. In Europe, the
euro has been developed. Currencies are generally traded by leading
international commercial banks and institutional investors (including
corporate treasurers, money managers, pension funds and insurance companies).
From time to time, central banks in a number of countries also are major
buyers and sellers of foreign currencies, mostly for the purpose of preventing
or reducing substantial exchange rate fluctuations.
Exchange rate fluctuations are partly dependent on a number of economic
factors including economic conditions within countries, the impact of actual
and proposed government policies on the value of currencies, interest rate
differentials between the currencies and the balance of imports and exports of
goods and services and transfers of income and capital from one country to
another. These economic factors are influenced primarily by a particular
country's monetary and fiscal policies (although the perceived political
situation in a particular country may have an influence as well-particularly
with respect to transfers of capital). Investor psychology may also be an
Page 6
important determinant of currency fluctuations in the short run. Moreover,
institutional investors trying to anticipate the future relative strength or
weakness of a particular currency may sometimes exercise considerable
speculative influence on currency exchange rates by purchasing or selling
large amounts of the same currency or currencies. However, over the long term,
the currency of a country with a low rate of inflation and a favorable balance
of trade should increase in value relative to the currency of a country with a
high rate of inflation and deficits in the balance of trade.
The following tables set forth, for the periods indicated, the range of
fluctuation concerning the equivalent U.S. dollar rates of exchange and end-of-
month equivalent U.S. dollar rates of exchange for the United Kingdom pound
sterling and the euro:
Foreign Exchange Rates
Range of Fluctuations in Foreign Currencies
United Kingdom
Annual Pound Sterling/ Euro/
Period U.S. Dollar U.S. Dollar
______ _______________ ___________
1983 0.616-0.707
1984 0.670-0.864
1985 0.672-0.951
1986 0.643-0.726
1987 0.530-0.680
1988 0.525-0.601
1989 0.548-0.661
1990 0.504-0.627
1991 0.499-0.624
1992 0.498-0.667
1993 0.630-0.705
1994 0.610-0.684
1995 0.610-0.653
1996 0.583-0.670
1997 0.584-0.633
1998 0.584-0.620
1999 0.597-0.646 0.845-0.999
2000 0.605-0.715 0.967-1.209
2001 0.665-0.728 1.045-1.196
2002 0.621-0.710 0.953-1.164
2003 0.560-0.643 0.794-0.965
2004 0.514-0.570 0.733-0.846
2005 0.518-0.583 0.743-0.857
2006 0.505-0.581 0.749-0.846
2007 0.474-0.521 0.672-0.776
2008 0.492-0.695 0.625-0.803
2009 0.598-0.727 0.661-0.798
2010 0.611-0.698 0.689-0.839
2011 0.599-0.652 0.674-0.775
2012 0.614-0.653 0.743-0.829
2013 0.604-0.673 0.725-0.782
2014 0.583-0.644 0.718-0.827
2015 0.630-0.683 0.826-0.953
2016 0.672-0.825 0.867-0.963
2017 0.736-0.830 0.831-0.961
2018 0.697-0.801 0.799-0.891
2019 0.750-0.831 0.866-0.918
Source: Bloomberg L.P.
Page 7
End of Month Exchange Rates for Foreign Currencies
United Kingdom
Pound Sterling/ Euro/
Monthly Period U.S. Dollar U.S. Dollar
______________ ______________ ___________
2016:
January .702 .923
February .719 .920
March .696 .879
April .684 .873
May .690 .898
June .751 .900
July .756 .895
August .761 .896
September .771 .890
October .817 .911
November .800 .944
December .810 .951
2017:
January .795 .926
February .808 .946
March .797 .939
April .772 .918
May .776 .889
June .768 .875
July .757 .844
August .773 .840
September .746 .846
October .753 .857
November .739 .840
December .740 .833
2018:
January .705 .806
February .727 .820
March .714 .811
April .727 .828
May .752 .855
June .757 .856
July .762 .855
August .772 .862
September .767 .862
October .783 .884
November .784 .884
December .784 .872
2019
January .763 .874
February .754 .879
March .767 .891
April .767 .892
May .792 .895
June .788 .879
July .822 .903
August .823 .911
September .814 .918
October .773 .897
November .774 .908
December .754 .892
2020
January .757 .901
February .780 .907
March .805 .907
April .794 .913
May .810 .901
June .806 .890
July .764 .849
August .748 .838
September .774 .853
Page 8
The Evaluator will estimate current exchange rates for the relevant currencies
based on activity in the various currency exchange markets. However, since
these markets are volatile and are constantly changing, depending on the
activity at any particular time of the large international commercial banks,
various central banks, large multi-national corporations, speculators and
other buyers and sellers of foreign currencies, and since actual foreign
currency transactions may not be instantly reported, the exchange rates
estimated by the Evaluator may not be indicative of the amount in United
States dollars the Trusts would receive had the Trustee sold any particular
currency in the market. The foreign exchange transactions of the Trusts will
be conducted by the Trustee with foreign exchange dealers acting as principals
on a spot (i.e., cash) buying basis. Although foreign exchange dealers trade
on a net basis, they do realize a profit based upon the difference between the
price at which they are willing to buy a particular currency (bid price) and
the price at which they are willing to sell the currency (offer price).
Small and/or Mid Capitalization Companies. The following section applies to
individual Trusts which contain Securities issued by, or invest in Securities
that hold securities issued by, small and/or mid capitalization companies.
While historically stocks of small and mid capitalization companies have
outperformed the stocks of large companies, the former have customarily
involved more investment risk as well. Such companies may have limited product
lines, markets or financial resources; may lack management depth or
experience; and may be more vulnerable to adverse general market or economic
developments than large companies. Some of these companies may distribute,
sell or produce products which have recently been brought to market and may be
dependent on key personnel.
The prices of small and mid cap company securities are often more volatile
than prices associated with large company issues, and can display abrupt or
erratic movements at times, due to limited trading volumes and less publicly
available information. Also, because such companies normally have fewer shares
outstanding and these shares trade less frequently than large companies, it
may be more difficult for the Trusts which contain these Securities to buy and
sell significant amounts of such shares without an unfavorable impact on
prevailing market prices.
Concentrations
Concentration Risk. When at least 25% of a trust's portfolio is invested in
securities issued by companies within a single sector, the trust is considered
to be concentrated in that particular sector. If a Trust is concentrated in
more than one sector, at least 25% of the Trust's portfolio is invested in
each sector in which it is concentrated. A portfolio concentrated in one or
more sectors may present more risks than a portfolio broadly diversified over
several sectors.
The Dow(R) Target 5 Portfolio is concentrated in stocks of the industry or group
of industries comprising the consumer staples sector. The Dow(R) Target Dividend
Portfolio is concentrated in stocks of the industry or group of industries
comprising the financials and utilities sectors. The S&P Dividend Aristocrats Target
25 Portfolio is concentrated in stocks of the industry or group of industries
comprising the industrials sector. The S&P Target 24 Portfolio, the Target VIP
Portfolio and the Value Line(R) Target 25 Portfolio are concentrated in stocks of
the industry or group of industries comprising the information technology
sector. The S&P Target SMid 60 Portfolio and the Target Focus Four Portfolio are
concentrated in stocks of the industry or group of industries comprising the
financials sector. The Target Double Play Portfolio is concentrated in stocks of
the industry or group of industries comprising the financials and information
technology sectors.
Consumer Staples. Consumer staples companies provide products directly to the
consumer that are typically considered non-discretionary items based on
consumer purchasing habits. Such products include food, beverages, household
items and tobacco. Risks inherent in an investment in the consumer staples
sector include the cyclicality of revenues and earnings, changing consumer
demands, regulatory restrictions, product liability litigation and other
litigation resulting from accidents, extensive competition (including that of
low-cost foreign competition), unfunded pension fund liabilities and employee
and retiree benefit costs and financial deterioration resulting from leveraged
buy-outs, takeovers or acquisitions. Historically, the demand for consumer
staples goods has remained fairly constant regardless of the state of the
economy. With some products, such as food, alcohol and tobacco, demand
sometimes increases during economic downturns. However, price competition
among suppliers may be very challenging, which can drive prices lower and
impact returns. Other factors of particular relevance to the profitability of
the sector are the effects of increasing environmental regulation on packaging
and on waste disposal, the continuing need to conform with foreign regulations
governing packaging and the environment, the outcome of trade negotiations and
the effect on foreign subsidies and tariffs, foreign exchange rates, the price
of oil and its effect on energy costs, inventory cutbacks by retailers,
transportation and distribution costs, health concerns relating to the
Page 9
consumption of certain products, the effect of demographics on consumer
demand, the availability and cost of raw materials and the ongoing need to
develop new products and to improve productivity.
Financials. Companies in the financials sector include regional and money
center banks, securities brokerage firms, asset management companies, savings
banks and thrift institutions, specialty finance companies (e.g., credit card,
mortgage providers), insurance and insurance brokerage firms, consumer finance
firms, financial conglomerates, foreign banking and financial companies.
Financial companies are subject to extensive governmental regulation which
limits their activities and may affect their ability to earn a profit from a
given line of business. Government regulation may change frequently and may
have significant adverse consequences for companies in the financials sector,
including effects not intended by the regulation. New legislation and
regulatory changes could cause business disruptions, result in significant
loss of revenue, limit financial firms' ability to pursue business
opportunities, impact the value of business assets and impose additional costs
that may adversely affect business. There can be no assurance as to the actual
impact these laws and their implementing regulations, or any other
governmental program, will have on any individual financial company or on the
financial markets as a whole. Companies in the financials sector may also be
the targets of hacking and potential theft of proprietary or customer
information or disruptions in service, which could have a material adverse
effect on their businesses.
In addition, general economic conditions are important to the operations of
these companies, and financial difficulties of borrowers may have an adverse
effect on the profitability of financial companies. Financial companies can be
highly dependent upon access to capital markets, and any impediments to such
access, such as adverse overall economic conditions or a negative perception
in the capital markets of a financial company's financial condition or
prospects, could adversely affect its business. Deterioration of credit
markets can have an adverse impact on a broad range of financial markets,
causing certain financial companies to incur large losses. In these
conditions, companies in the financials sector may experience significant
declines in the valuation of their assets, take actions to raise capital and
even cease operations. Some financial companies may also be required to accept
or borrow significant amounts of capital from government sources and may face
future government-imposed restrictions on their businesses or increased
government intervention. However, there is no guarantee that governments will
provide any such relief in the future. These actions may cause the securities
of many companies in the financials sector to decline in value.
Banks, thrifts and their holding companies are especially subject to the
adverse effects of economic recession; volatile interest rates; portfolio
concentrations in geographic markets, in commercial and residential real
estate loans or any particular segment or industry; and competition from new
entrants in their fields of business. Banks, thrifts and their holding
companies are subject to extensive federal regulation and, when such
institutions are state-chartered, to state regulation as well. Such
regulations impose strict capital requirements and limitations on the nature
and extent of business activities that banks and thrifts may pursue.
Regulatory actions, such as increases in the minimum capital requirements
applicable to banks and thrifts and increases in deposit insurance premiums
required to be paid by banks and thrifts to the FDIC, can negatively impact
earnings and the ability of a company to pay dividends. Neither federal
insurance of deposits nor governmental regulations, however, insures the
solvency or profitability of banks or their holding companies, or insures
against any risk of investment in the securities issued by such institutions.
Interest rate levels, general economic conditions and price and marketing
competition also affect insurance company profits. Companies involved in the
insurance industry are engaged in underwriting, reinsuring, selling,
distributing or placing of property and casualty, life or health insurance.
Property and casualty insurance profits may also be affected by weather
catastrophes and other disasters. Life and health insurance profits may be
affected by mortality and morbidity rates. Individual companies may be exposed
to material risks including reserve inadequacy and the inability to collect
from reinsurance carriers. Insurance companies are subject to extensive
governmental regulation, including the imposition of maximum rate levels,
which may not be adequate for some lines of business. Proposed or potential
tax law changes may also adversely affect insurance companies' policy sales,
tax obligations, and profitability. In addition to the foregoing, profit
margins of these companies continue to shrink due to the commoditization of
traditional businesses, new competitors, capital expenditures on new
technology and the pressures to compete globally. All insurance companies are
subject to state laws and regulations that require diversification of their
investment portfolios and limit the amount of investments in certain
investment categories. Failure to comply with these laws and regulations would
cause non-conforming investments to be treated as non-admitted assets for
purposes of measuring statutory surplus and, in some instances, would require
divestiture associations.
Page 10
Industrials. The profitability of industrial companies will be affected by
various factors including the general state of the economy, intense
competition, domestic and international politics, excess capacity and spending
trends. The Internet may also influence the industrial market. Customers'
desire for better pricing and convenience, as well as manufacturers' desire to
boost profitability by finding new avenues of sales growth and productivity
gains, may drive many industrial manufacturers to invest heavily in Internet
hardware and software. Because the Internet allows manufacturers to take
orders directly from customers, thus eliminating the middlemen from both
supply chains and distributors, industrial makers may no longer need
traditional third-party outfits to distribute their products. In addition, the
Internet may also allow industrial manufacturers to cut inventory levels, by
enabling customers to tailor their orders to their specific needs.
Industrial companies may also be affected by factors more specific to their
individual industries. Industrial machinery manufacturers may be subject to
declines in consumer demand and the need for modernization. Agricultural
equipment businesses may be influenced by fluctuations in farm income, farm
commodity prices, government subsidies and weather conditions. The number of
housing starts, levels of public and non-residential construction including
weakening demand for new office and retail space, and overall construction
spending may adversely affect construction equipment manufacturers, while
overproduction, consolidation and weakening global economies may lead to
deteriorating sales for truck makers.
Information Technology. Technology companies generally include companies
involved in the development, design, manufacture and sale of computers and
peripherals, software and services, data networking/communications equipment,
Internet access/information providers, semiconductors and semiconductor
equipment and other related products, systems and services. The market for
these products, especially those specifically related to the Internet, is
characterized by rapidly changing technology, rapid product obsolescence,
cyclical market patterns, evolving industry standards and frequent new product
introductions. The success of the issuers of the Securities depends in
substantial part on the timely and successful introduction of new products. An
unexpected change in one or more of the technologies affecting an issuer's
products or in the market for products based on a particular technology could
have a material adverse effect on an issuer's operating results. Furthermore,
there can be no assurance that the issuers of the Securities will be able to
respond in a timely manner to compete in the rapidly developing marketplace.
Based on trading history of common stock, factors such as announcements of new
products or development of new technologies and general conditions of the
industry have caused and are likely to cause the market price of high-
technology common stocks to fluctuate substantially. In addition, technology
company stocks have experienced extreme price and volume fluctuations that
often have been unrelated to the operating performance of such companies. This
market volatility may adversely affect the market price of the Securities and
therefore the ability of a Unit holder to redeem Units at a price equal to or
greater than the original price paid for such Units.
Some key components of certain products of technology issuers are currently
available only from single sources. There can be no assurance that in the
future suppliers will be able to meet the demand for components in a timely
and cost effective manner. Accordingly, an issuer's operating results and
customer relationships could be adversely affected by either an increase in
price for, or an interruption or reduction in supply of, any key components.
Additionally, many technology issuers are characterized by a highly
concentrated customer base consisting of a limited number of large customers
who may require product vendors to comply with rigorous industry standards.
Any failure to comply with such standards may result in a significant loss or
reduction of sales. Because many products and technologies of technology
companies are incorporated into other related products, such companies are
often highly dependent on the performance of the personal computer,
electronics and telecommunications industries. There can be no assurance that
these customers will place additional orders, or that an issuer of Securities
will obtain orders of similar magnitude as past orders from other customers.
Similarly, the success of certain technology companies is tied to a relatively
small concentration of products or technologies. Accordingly, a decline in
demand of such products, technologies or from such customers could have a
material adverse impact on issuers of the Securities.
Many technology companies rely on a combination of patents, copyrights,
trademarks and trade secret laws to establish and protect their proprietary
rights in their products and technologies. There can be no assurance that the
steps taken by the issuers of the Securities to protect their proprietary
rights will be adequate to prevent misappropriation of their technology or
that competitors will not independently develop technologies that are
substantially equivalent or superior to such issuers' technology. In addition,
due to the increasing public use of the Internet, it is possible that other
laws and regulations may be adopted to address issues such as privacy,
pricing, characteristics, and quality of Internet products and services. The
Page 11
adoption of any such laws could have a material adverse impact on the
Securities in the Trust.
Like many areas of technology, the semiconductor business environment is
highly competitive, notoriously cyclical and subject to rapid and often
unanticipated change. Recent industry downturns have resulted, in part, from
weak pricing, persistent overcapacity, slowdown in Asian demand and a shift in
retail personal computer sales toward the low end, or "sub-$1,000" segment.
Industry growth is dependent upon several factors, including: the rate of
global economic expansion; demand for products such as personal computers and
networking and communications equipment; excess productive capacity and the
resultant effect on pricing; and the rate of growth in the market for low-
priced personal computers.
The social media industry is also highly competitive and subject to the risks
involved with information technology companies, namely, short product life
cycles, evolving industry standards, loss of patent protections, rapidly
changing technologies and frequent new product introductions. Additional
risks generally applicable to social media companies include, without
limitation: disruption of services due to internal or external technical
issues; security breaches of private, proprietary and confidential
information; and evolving laws and regulations, foreign or domestic, that
could negatively affect operations. Furthermore, the sustainability of the
business models employed by social media companies remain largely unproven.
Utilities. General problems of the public utility sector include risks of
increases in fuel and other operating costs; restrictions on operations and
increased costs and delays as a result of environmental, nuclear safety and
other regulations; regulatory restrictions on the ability to pass increasing
wholesale costs along to the retail and business customer; energy
conservation; technological innovations which may render existing plants,
equipment or products obsolete; the effects of local weather, maturing markets
and difficulty in expanding to new markets due to regulatory and other
factors; natural or man-made disasters; difficulty obtaining adequate returns
on invested capital; the high cost of obtaining financing during periods of
inflation; difficulties of the capital markets in absorbing utility debt and
equity securities; and increased competition. There is no assurance that such
public service commissions will, in the future, grant rate increases or that
any such increases will be adequate to cover operating and other expenses and
debt service requirements. All of the public utilities which are issuers of
the Securities in the portfolio have been experiencing many of these problems
in varying degrees. Furthermore, utility stocks are particularly susceptible
to interest rate risk, generally exhibiting an inverse relationship to
interest rates. As a result, utility stock prices may be adversely affected as
interest rates rise. The Sponsor makes no prediction as to whether interest
rates will rise or fall or the effect, if any, interest rates may have on the
Securities in the portfolio. In addition, federal, state and municipal
governmental authorities may from time to time review existing, and impose
additional, regulations governing the licensing, construction and operation of
nuclear power plants, which may adversely affect the ability of the issuers of
certain of the Securities in the Trust's portfolio to make dividend payments
on their Securities.
Utilities are generally subject to extensive regulation by state utility
commissions which, for example, establish the rates which may be charged and
the appropriate rate of return on an approved asset base, which must be
approved by the state commissions. The value of utility company securities may
decline as a result of changes to governmental regulation controlling the
utilities industry. Adverse regulatory changes could prevent or delay
utilities from passing along cost increases to customers, which could hinder a
utility's ability to meet its obligations to its suppliers.
Additionally, certain utilities have had difficulty from time to time in
persuading regulators, who are subject to political pressures, to grant rate
increases necessary to maintain an adequate return on investment and voters in
many states have the ability to impose limits on rate adjustments (for
example, by initiative or referendum). Any unexpected limitations could
negatively affect the profitability of utilities whose budgets are planned far
in advance. In addition, gas pipeline and distribution companies have had
difficulties in adjusting to short and surplus energy supplies, enforcing or
being required to comply with long-term contracts and avoiding litigation from
their customers, on the one hand, or suppliers, on the other.
Mergers in the utility sector may require approval from several federal and
state regulatory agencies. These regulatory authorities could, as a matter of
policy, reverse the trend toward deregulation and make consolidation more
difficult, or cause delay in the merger process, any of which could cause the
prices of these securities to fall. Certain of the issuers of the Securities
in the Trust may own or operate nuclear generating facilities. Governmental
authorities may from time to time review existing, and impose additional,
requirements governing the licensing, construction and operation of nuclear
power plants. Nuclear generating projects in the electric utility industry
have experienced substantial cost increases, construction delays and licensing
difficulties. These have been caused by various factors, including inflation,
Page 12
high financing costs, required design changes and rework, allegedly faulty
construction, objections by groups and governmental officials, limits on the
ability to finance, reduced forecasts of energy requirements and economic
conditions. This experience indicates that the risk of significant cost
increases, delays and licensing difficulties remain present until completion
and achievement of commercial operation of any nuclear project. Also, nuclear
generating units in service have experienced unplanned outages or extensions
of scheduled outages due to equipment problems or new regulatory requirements
sometimes followed by a significant delay in obtaining regulatory approval to
return to service. A major accident at a nuclear plant anywhere, such as the
accident at a plant in Chernobyl, could cause the imposition of limits or
prohibitions on the operation, construction or licensing of nuclear units in
the United States.
Securities
The following information describes the common stocks selected through the
application of each of the Strategies which comprise the various Trusts
described in the prospectus.
The Dow(R) DART 5 Strategy Stocks
Amgen Inc., headquartered in Thousand Oaks, California, is a global
biotechnology company. The company develops, makes and markets human
therapeutics based on advanced cellular and molecular biology.
Apple Inc., headquartered in Cupertino, California, is a technology company.
The company designs, manufactures and markets personal computers, related
personal computing and mobile communication devices through the company's
retail and online stores, resellers and third-party wholesalers.
Intel Corporation, headquartered in Santa Clara, California, designs,
develops, makes and markets advanced microcomputer components and related
products at various levels of integration. The company's principal components
consist of silicon-based semiconductors etched with complex patterns of
transistors.
JPMorgan Chase & Co., headquartered in New York, New York, is a financial
holding company. The company provides financial services and investment
banking to entities and individuals, including consumers, small businesses,
financial institutions, municipalities, the nonprofit sector and real estate
investors.
The Travelers Companies, Inc., headquartered in New York, New York, through
its subsidiaries, provides various commercial and personal property and
casualty insurance products and services to businesses, government units,
associations and individuals, primarily in the United States.
The Dow(R) Target 5 Strategy Stocks
Cisco Systems, Inc., headquartered in San Jose, California, is an information
technology company. The company provides networking solutions that connect
computing devices and computer networks for utilities, corporations,
universities, governments and small to medium-size businesses worldwide.
The Coca-Cola Company, headquartered in Atlanta, Georgia, makes and
distributes soft drink concentrates and syrups and also markets juice and
juice-drink products. The company's products are sold in more than 200
countries and include the leading soft drink products in most of these
countries.
Dow Inc., headquartered in Midland, Michigan, is a holding company. The
company, through its subsidiary, engages in the processing and distribution of
chemical products worldwide. The company was created in 2017 as a subsidiary
of DowDuPont.
Verizon Communications Inc., headquartered in New York, New York, is an
integrated telecommunications company. The company provides wireline voice and
data services, wireless services and Internet service worldwide. Through its
subsidiary, the company also provides network services for the U.S. federal
government including business phone lines, data services, telecommunications
equipment and pay phones.
Walgreens Boots Alliance, Inc., headquartered in Deerfield, Illinois, with its
subsidiaries, operates a global network of pharmacies with a presence in more
than 25 countries. The company provides consumer goods and services, health
and wellness services, prescription and non-prescription drugs, general
merchandise, household items, personal care, photofinishing, candy and beauty
care, as well as specialty pharmacy services for chronic health issues.
Page 13
The Dow(R) Target Dividend Strategy Stocks
CenturyLink, Inc., headquartered in Monroe, Louisiana, is a regional
diversified communications company engaged primarily in providing local
exchange telephone services and wireless telephone communications services.
Citizens Financial Group, Inc., headquartered in Providence, Rhode Island,
provides a full range of commercial banking services for retail customers. The
company offers consumer loans, commercial loans and mortgage loans.
Edison International, headquartered in Rosemead, California, through
subsidiaries, supplies electricity in the central and southern portions of
California. The company also develops, owns and operates independent power
facilities; provides capital and financial services for energy and
infrastructure projects; and manages and sells real estate projects.
Exelon Corporation, headquartered in Chicago, Illinois, is an electric utility
holding company. Together with its subsidiaries, the company owns, contracts
and invests in electric generating facilities such as nuclear, hydroelectric
generation, wind and solar facilities.
F.N.B. Corporation, headquartered in Pittsburgh, Pennsylvania, is a financial
holding company that provides a variety of financial services to individuals
and small to medium-sized businesses. The company, through its subsidiaries,
offers services in Pennsylvania, Kentucky, Maryland, Ohio, Tennessee and West
Virginia.
Federated Hermes, Inc. (Class B), headquartered in Pittsburgh, Pennsylvania,
and its subsidiaries sponsor, market and provide investment advisory,
distribution and administrative services primarily to mutual funds. The
company also provides services to corporations, employee benefit plans and
others.
Invesco Ltd., incorporated in Bermuda and headquartered in Atlanta, Georgia,
is an investment management group specializing in investment management
services covering equities, fixed-income products, and alternative investments
such as real estate and absolute return strategies.
MetLife, Inc., headquartered in New York, New York, provides insurance and
financial services to a range of individual and institutional customers. The
company has operations in the United States and other countries in the Asia-
Pacific region, Latin America and Europe.
New Jersey Resources Corporation, headquartered in Wall, New Jersey, provides
retail and wholesale natural gas energy services to residential and commercial
customers in New Jersey, other states and Canada. The company also invests,
owns and operates renewable energy for solar projects and on-shore wind
investments projects.
New York Community Bancorp, Inc., headquartered in Westbury, New York, is a
multi-bank holding company. Through its subsidiaries, the company offers a
full range of banking services and originates multi-family mortgage,
commercial real estate and construction loans.
Newell Brands Inc., headquartered in Atlanta, Georgia, is a global
manufacturer and full-service marketer of name-brand consumer products. The
company markets its products through volume purchasers, including discount
stores and warehouse clubs.
People's United Financial, Inc., headquartered in Bridgeport, Connecticut, is
a bank holding company for People's United Bank, offering services to
individual, corporate and municipal customers. The company has offices in
Connecticut, Maine, Massachusetts, New Hampshire, New York and Vermont.
Pinnacle West Capital Corporation, headquartered in Phoenix, Arizona, owns
Arizona Public Service Company, an electric utility that provides retail and
wholesale electric service to nearly all of Arizona. The company is engaged in
the generation and distribution of electricity from coal, nuclear, oil, gas
and solar resources.
Principal Financial Group, Inc., headquartered in Des Moines, Iowa, is
diversified in family insurance and financial services companies. The company
provides retirement savings as well as investment and insurance products and
services worldwide. The company also offers individual life and disability
insurance, group life and health insurance, and residential mortgage loan
origination and servicing in the United States.
Prudential Financial, Inc., headquartered in Newark, New Jersey, operates as a
financial services institution in the United States and worldwide. The
company's products and services include life insurance, mutual funds, pension
and retirement-related services and administration, annuities and asset
management.
Public Service Enterprise Group Incorporated, headquartered in Newark, New
Jersey, is a public utility holding company. Through its subsidiaries, the
company generates, transmits, distributes and sells electric energy. The
company also produces and distributes natural gas in the Mid-Atlantic and
Northeastern United States.
United Bankshares, Inc., headquartered in Charleston, West Virginia, through
its subsidiaries, provides commercial and retail banking services in West
Virginia, Maryland, Ohio, Pennsylvania, Virginia and Washington, D.C. The
Page 14
company also offers asset management, property title insurance, financial
planning, investment banking and brokerage services.
Unum Group, headquartered in Chattanooga, Tennessee, is the parent holding
company for a group of insurance and non-insurance companies that collectively
operate throughout North America and the United Kingdom. The company provides
long-term and short-term disability, group, individual and corporate-owned
life insurance and pension insurance products.
Valley National Bancorp, headquartered in Wayne, New Jersey, is a regional
bank holding company with branch locations in New Jersey, Alabama, Florida and
New York. The company offers a variety of financial services products,
including consumer lending, commercial lending and investment management.
WestRock Company, headquartered in Atlanta, Georgia, is a materials company.
The company manufactures and markets paper and packaging supplies to consumer
and corrugated markets on several continents.
European Target 20 Strategy Stocks
Allianz SE, headquartered in Munich, Germany, is a global insurance company
engaging in property and casualty protection, life and health insurance and
asset management. The company also offers motor liability and damage
insurance, corporate, investment, asset management and private banking products.
AXA S.A., headquartered in Paris, France, is an insurance company which also
provides related financial services. The company offers life and non-life
insurance, reinsurance, savings and pension products, and asset management
services.
BASF SE, headquartered in Ludwigshafen, Germany, is a chemical company. The
company operates in six segments: Chemicals, Plastics, Performance Products,
Functional Solutions, Agricultural Solutions and Oil & Gas. The company offers
products for the chemical, automotive, construction, agriculture, oil,
plastics, electrical/electronics, furniture and paper industries, and provides
a range of system solutions and services.
Bayer AG, headquartered in Leverkusen, Germany, manufactures industrial
chemicals and polymers, as well as human and animal health care products,
pharmaceuticals and agricultural crop protection agents. The company markets
its products to the automotive, electronic, medical, construction, farming,
textile, utility and printing industries worldwide.
BP Plc, headquartered in London, England, produces and markets crude oil and
petroleum products worldwide. The company is engaged in the exploration, field
development and production of natural gas and oil throughout the world. The
company also refines, manufactures and markets petroleum and petrochemical
products to wholesale and retail customers.
British American Tobacco Plc, headquartered in London, England, is the holding
company for an international tobacco group. The group has an active business
presence around the world. Brand names include "State Express 555," "Lucky
Strike," "Kent" and "Benson & Hedges."
E.ON SE, headquartered in Dusseldorf, Germany, is a multi-national company
which generates, distributes and trades electricity to industrial, commercial
and residential customers. Additionally, the company distributes gas and
drinking water. The company also manufactures flexible ceramic membranes and
polymers, buys and sells residential properties, and develops real estate.
Endesa, S.A., headquartered in Madrid, Spain, produces, transmits, distributes
and supplies electricity to major utilities throughout Spain and has interests
in coal mining companies.
Eni SpA, headquartered in Rome, Italy, operates in the oil and natural gas,
petrochemicals, and oil field services industries. The company generates and
trades electricity and operates oil refineries. The company has operations
internationally.
GlaxoSmithKline Plc, headquartered in Brentford, England, researches,
develops, produces and markets prescription and over-the-counter
pharmaceuticals around the world. The company offers products in various
therapeutic areas comprising gastrointestinal, respiratory, anti-emesis, anti-
migraine, systemic antibiotics, cardiovascular, dermatological, oncology and
rare diseases.
Muenchener Rueckversicherungs-Gesellschaft AG, headquartered in Munich,
Germany, is a financial services provider which offers reinsurance, insurance
and asset management services. The company has subsidiaries in most major
financial centers throughout the world.
National Grid Plc, headquartered in London, England, develops and operates
electricity and gas networks located throughout the United Kingdom and the
northeastern United States. In addition, the company owns liquefied natural
Page 15
gas storage facilities in England and provides infrastructure services to the
mobile telecommunications industry.
Nordea Bank Abp, headquartered in Helsinki, Finland, is a financial services
company. The company provides banking and other related advisory services.
Orange, headquartered in Paris, France, through its subsidiaries, offers
various telecommunications services, which include fixed line telephony,
wireless telephony, multimedia, Internet, data transmission, cable television
and other services to consumers, businesses and telecommunications operators
worldwide.
Rio Tinto Plc, headquartered in London, England, is engaged in finding, mining
and processing mineral resources. The company's major products include
aluminum, copper, diamonds, energy products (coal and uranium), gold,
industrial minerals (borax, titanium dioxide, salt, talc and zircon) and iron
ore.
Royal Dutch Shell Plc (Class A), incorporated in the United Kingdom and
headquartered in The Hague, the Netherlands, produces crude oil, natural gas,
chemicals, coal and metals worldwide. The company's products are marketed for
domestic, industrial and transport use.
Tesco Plc, headquartered in Hertfordshire, England, is a multinational grocery
and general merchandise retailer. The company also offers retail banking,
financial and insurance services.
Total SE, headquartered in Courbevoie, France, is an international integrated
oil and gas and specialty chemical company with operations in more than 130
countries. The company engages in all areas of the petroleum industry, from
exploration and production to refining and shipping.
Vodafone Group Plc, headquartered in Newbury, England, provides mobile
telecommunications services, supplying its customers with digital and analog
cellular telephone, paging and personal communications services. The company
offers its services in several countries worldwide.
Zurich Insurance Group AG, headquartered in Zurich, Switzerland, is a global
insurance provider. The company offers a full range of insurance and
investment products and services, from life insurance and investment funds for
individuals to complex reinsurance and alternative risk transfer arrangements
for companies.
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Adobe Incorporated, headquartered in San Jose, California, is a software
company. The company develops, markets and supports software products and
technologies for creative professionals, marketers, application developers,
enterprises and consumers.
Align Technology, Inc., headquartered in San Jose, California, designs,
manufactures and markets a clear aligner therapy system for treating
malocclusion or the misalignment of teeth. The company also markets intra-oral
scanners, computer-aided design digital services and dental records storage to
dental professionals.
Apple Inc., headquartered in Cupertino, California, is a technology company.
The company designs, manufactures and markets personal computers, related
personal computing and mobile communication devices through the company's
retail and online stores, resellers and third-party wholesalers.
Cadence Design Systems, Inc., headquartered in San Jose, California, offers
electronic design automation (EDA) technologies and engineering services to
electronics companies worldwide. The company also develops system design
enablement (SDE) solutions for use in designing electronics systems,
integrated circuits and electronic devices.
eBay Inc., headquartered in San Jose, California, operates an online person-to-
person trading community on the Internet, bringing together buyers and sellers
in an auction format to trade personal items such as antiques, coins,
collectibles, computers, memorabilia, stamps and toys.
Facebook, Inc. (Class A), headquartered in Menlo Park, California, is an
information technology company. The company designs and operates various
social media products that enable people to connect and share data through
mobile devices and other platforms.
Fastenal Company, headquartered in Winona, Minnesota, is principally engaged
in the sale of industrial supplies, including threaded fasteners and
construction supplies, through its retail store sites located in all 50
states, Canada, Mexico, Puerto Rico and Singapore.
IDEXX Laboratories, Inc., headquartered in Westbrook, Maine, develops,
manufactures and markets biotechnology-based detection systems primarily for
animal health applications. The company also develops and sells point-of-care
veterinary diagnostic products. The company markets its products worldwide.
Page 16
Lam Research Corporation, headquartered in Fremont, California, is an
information technology company. The company designs, manufactures, markets and
services semiconductor processing equipment used in the fabrication of
integrated circuits for a wide range of applications.
lululemon athletica inc., incorporated in the United States and headquartered
in Vancouver, Canada, is a designer and retailer of athletic apparel and
accessories for women and men. The company's yoga-inspired apparel is
primarily marketed in North America, Australia and New Zealand.
NetEase, Inc. (ADR), incorporated in the Cayman Islands and headquartered in
Beijing, China, through its subsidiaries, operates an online community in
China. The company operates in three segments: Online Game Services,
Advertising Services and Wireless Value-added Services and others.
NVIDIA Corporation, headquartered in Santa Clara, California, designs,
develops and markets graphics processors and related software for personal
computers and digital entertainment platforms.
Regeneron Pharmaceuticals, Inc., headquartered in Tarrytown, New York, is a
biopharmaceutical company. The company discovers, develops and commercializes
medicines for the treatment of serious medical conditions in the United States.
Skyworks Solutions, Inc., headquartered in Irvine, California, is a
semiconductor manufacturer. The company is focused on radio frequency and
complete semiconductor system solutions for mobile communications applications.
Zoom Video Communications, Inc. (Class A), headquartered in San Jose,
California, is a telecommunications services company. The company provides
video-first communications platforms, including Zoom Meetings, Zoom Phone and
Zoom Chat, through mobile devices, desktops, laptops, telephones and
conference room systems.
NYSE(R) International Target 25 Strategy Stocks
Brazil
______
Petroleo Brasileiro S.A. - Petrobras (ADR), headquartered in Rio de Janeiro,
Brazil, seeks out, produces, markets and supplies oil, natural gas and related
products. The company operates oil tankers, distribution pipelines, marine,
river and lake terminals, thermal power plants, fertilizer plants and
petrochemical units in South America and worldwide.
Canada
______
Canadian Natural Resources Limited, headquartered in Calgary, Canada, is a
senior independent oil and natural gas exploration, development and production
company. The company's operations are focused in Western Canada, the North Sea
and offshore West Africa.
Nutrien Ltd., headquartered in Saskatchewan, Canada, is a provider of crop
inputs and services such as potash, nitrogen, and phosphate products. The
company serves clients in the agricultural, industrial, and feed industries.
Suncor Energy Inc., headquartered in Calgary, Canada, is an integrated energy
company focused on developing petroleum basins in Western Canada. The company
also acquires, develops, produces and markets crude oil and natural gas in
Canada and internationally, and markets petroleum and petrochemical products
primarily in Canada.
Colombia
________
Ecopetrol S.A. (ADR), headquartered in Bogota, Colombia, engages primarily in
the exploration, production, refining, transportation and commercialization of
crude oil and gas in South America.
France
______
Orange (ADR), headquartered in Paris, France, through its subsidiaries, offers
various telecommunications services, which include fixed line telephony,
wireless telephony, multimedia, Internet, data transmission, cable television
and other services to consumers, businesses, and telecommunications operators
worldwide.
Total SE (ADR), headquartered in Courbevoie, France, is an international
integrated oil and gas and specialty chemical company with operations in more
than 130 countries. The company engages in all areas of the petroleum
industry, from exploration and production to refining and shipping.
Hong Kong
_________
China Mobile Limited (ADR), headquartered in Hong Kong, together with its
subsidiaries, provides cellular telecommunications services in China and Hong
Kong. The company also designs and markets electronic communication products
and provides non-banking financial services.
China Unicom (Hong Kong) Limited (ADR), headquartered in Hong Kong, offers a
range of telecommunications services in China. An integrated
telecommunications operator, the company's services include long distance,
cellular, data and Internet access.
Page 17
CNOOC Limited (ADR), incorporated in Hong Kong and headquartered in Beijing,
China, through its subsidiaries, engages in the exploration, development, and
production of crude oil and natural gas. The company has operations throughout
the world.
Japan
_____
Canon Inc. (ADR), headquartered in Tokyo, Japan, is engaged in the
development, manufacturing and sale of imaging technology solutions. The
company's products include digital cameras and camcorders, inkjet printers,
commercial photo printers, image scanners, photocopy machines and broadcast
equipment. In addition, the company's imaging technology has applications in
various industries, such as radiology systems and flat panel display equipment.
Honda Motor Co., Ltd. (ADR), headquartered in Tokyo, Japan, develops,
produces, and manufactures a variety of motor products, ranging from small
general-purpose engines and scooters to specialty sports cars. The company
markets its products globally and also provides financing to its dealers and
customers.
Mizuho Financial Group, Inc. (ADR), headquartered in Tokyo, Japan, through its
subsidiary banks, provides various financial services, including banking,
securities, and trust and asset management services in Japan and
internationally.
Toyota Motor Corporation (ADR), headquartered in Toyota City, Japan,
manufactures, sells, leases and repairs passenger automobiles, trucks and
buses in Japan and internationally. The company also builds homes and pleasure
boats, and develops intelligent transportation systems such as radar cruise
control and electronic toll collection.
The Netherlands
_______________
ING Groep N.V. (ADR), headquartered in Amsterdam, the Netherlands, offers a
comprehensive range of financial services worldwide, including life and non-
life insurance, commercial and investment banking, asset management and
related products.
Royal Dutch Shell Plc (ADR), incorporated in the United Kingdom and
headquartered in The Hague, the Netherlands, produces crude oil, natural gas,
chemicals, coal and metals worldwide. The company's products are marketed for
domestic, industrial and transport use.
Norway
______
Equinor ASA, headquartered in Stavanger, Norway, is the largest integrated oil
and gas company in Scandinavia, producing oil and gas from the Norwegian
Continental Shelf and other regions.
Spain
_____
Banco Bilbao Vizcaya Argentaria, S.A. (ADR), headquartered in Madrid, Spain,
is a financial services company. The company engages in retail banking, asset
management, private banking and wholesale banking operations worldwide.
Telefonica, S.A. (ADR), headquartered in Madrid, Spain, provides
telecommunication services, including mobile voice, roaming, corporate
services and mobile data and Internet throughout Europe and Latin America. The
company also provides fixed telecommunications services and wholesale services
for telecommunication operators.
Switzerland
___________
Credit Suisse Group AG (ADR), headquartered in Zurich, Switzerland, is an
international financial services provider. The company offers private banking,
investment banking and asset management services to a global clientele.
UBS Group AG, headquartered in Zurich, Switzerland, together with its
subsidiaries, provides a variety of banking services worldwide. The company
offers wealth management services, retail and corporate asset management and
investment banking products.
United Kingdom
______________
Barclays Plc (ADR), headquartered in London, England, is a financial services
group engaged primarily in the banking and investment banking businesses.
Through its subsidiaries, the company offers commercial and investment
banking, insurance, financial and related services in countries worldwide.
BP Plc (ADR), headquartered in London, England, produces and markets crude oil
and petroleum products worldwide. The company is engaged in the exploration,
field development and production of natural gas and oil throughout the world.
The company also refines, manufactures and markets petroleum and petrochemical
products to wholesale and retail customers.
British American Tobacco Plc (ADR), headquartered in London, England, through
its subsidiaries, provides tobacco and nicotine products including cigarettes
and roll-your-own tobacco, as well as cigars, cigarillos, pipe tobacco, snus,
Page 18
electronic cigarettes and nicotine inhalation. The company has an active
business presence in approximately 180 countries around the world.
Lloyds Banking Group Plc (ADR), headquartered in London, England, through
subsidiaries and associated companies, offers banking and financial services
to personal and commercial customers. The company operates throughout the
United Kingdom.
S&P Dividend Aristocrats Target 25 Strategy Stocks
3M Company, headquartered in St. Paul, Minnesota, manufactures industrial,
electronic, health, consumer, office and safety products for distribution
worldwide. The company's products include adhesives, abrasives and "Scotch"
brand products. The company also manufactures the 3M Electronic Marker System
(EMS), markers for utility usage (water, wastewater or gas) which relocate
buried markers via low-band frequencies.
A.O. Smith Corporation, headquartered in Milwaukee, Wisconsin, is a
diversified manufacturer whose major product lines include hermetic and
fractional horsepower electric motors. The company also manufactures
commercial and residential water heaters.
Aflac Incorporated, headquartered in Columbus, Georgia, provides supplemental
insurance to individuals. The company's products include short-term disability
plans, accident/disability plans, hospital intensive care plans, cancer
expense plans and fixed-benefit dental plans.
Air Products and Chemicals, Inc., headquartered in Allentown, Pennsylvania, is
an industrial gases company. The company recovers and distributes industrial
gases and a variety of medical and specialty gases; produces polymer
chemicals, performance chemicals and supplies cryogenic and other process
equipment and related engineering services.
Archer-Daniels-Midland Company, headquartered in Chicago, Illinois, is engaged
in the business of procuring, transporting, storing, processing, and
merchandising agricultural commodities and products, including oil seeds, corn
and wheat.
Atmos Energy Corporation, headquartered in Dallas, Texas, primarily
distributes and sells natural gas to residential, commercial, industrial,
agricultural and other customers in service areas located in the Midwest and
Southeast. The company also owns natural gas storage and pipeline assets.
Automatic Data Processing, Inc., headquartered in Roseland, New Jersey, is one
of the largest providers of computerized transaction processing, data
communication and information services in the world.
Caterpillar Inc., headquartered in Deerfield, Illinois, makes earthmoving,
construction and materials handling machinery and equipment. The company also
provides financing and insurance and distributes its equipment through a
global network of dealers.
Chevron Corporation, headquartered in San Ramon, California, is an integrated
energy company. The company explores, develops and produces crude oil and
natural gas and refines it into industrial petroleum products.
Cincinnati Financial Corporation, headquartered in Fairfield, Ohio, through
its subsidiaries, offers property and casualty and life insurance. The company
markets a variety of insurance products and provides leasing and financing and
investment management services to institutions, corporations and individuals.
Emerson Electric Co., headquartered in St. Louis, Missouri, is a diversified
manufacturing company. The company designs, makes and sells electrical,
electromechanical and electronic products and systems.
Expeditors International of Washington, Inc., headquartered in Seattle,
Washington, is engaged in the business of logistics management, including
international freight forwarding and consolidation, for both air and ocean
freight. The company operates globally.
Exxon Mobil Corporation, headquartered in Irving, Texas, explores for,
produces, transports and sells crude oil and natural gas petroleum products.
The company also explores for and mines coal and other mineral properties,
makes and sells petrochemicals and owns interests in electrical power
generation facilities.
Franklin Resources, Inc., headquartered in San Mateo, California, provides
individual and institutional investors worldwide with a broad range of
investment products and services designed to meet varying investment
objectives. The company provides services to high net worth individuals as
well as investors in retirement and mutual funds.
General Dynamics Corporation, headquartered in Reston, Virginia, is an
aerospace and defense company. The company's products and services include
business aviation, combat vehicles, weapons systems, information technology
services and marine systems.
Page 19
Hormel Foods Corporation, headquartered in Austin, Minnesota, engages in the
production and marketing of various meat and food products. The company
primarily operates in the United States.
Johnson & Johnson, headquartered in New Brunswick, New Jersey, makes and sells
health care products, medical devices and pharmaceuticals globally. The
company provides research and other related support and services for the
consumer, pharmaceutical and medical diagnostic markets.
Kimberly-Clark Corporation, headquartered in Dallas, Texas, is an
international company which manufactures and markets tissue products, personal
care and health care products, as well as business, correspondence and
technical papers. The company sells its products under the brand names
"Depend," "Huggies," "Kleenex," "Kotex," "Page" and "Tecnol."
Nucor Corporation, headquartered in Charlotte, North Carolina, and its
subsidiaries, are engaged in the manufacture and sale of steel products
internationally. The company's products include hot-rolled, cold-rolled and
galvanized sheet, cold finished steel, bar steel and more.
Pentair Plc, incorporated in Ireland and headquartered in London, England,
together with its subsidiaries, is a water industrial manufacturing company.
The company offers globally sustainable water solutions for residential,
industrial, commercial, agricultural and infrastructure applications.
People's United Financial, Inc., headquartered in Bridgeport, Connecticut, is
a bank holding company for People's United Bank, offering services to
individual, corporate and municipal customers. The company has offices in
Connecticut, Maine, Massachusetts, New Hampshire, New York and Vermont.
The Procter & Gamble Company, headquartered in Cincinnati, Ohio, manufactures
and markets consumer products worldwide. The company's products are available
in the laundry and cleaning, paper, beauty care, food and beverage, and health
care segments.
T. Rowe Price Group, Inc., headquartered in Baltimore, Maryland, is a
financial services holding company. The company, through its subsidiaries,
serves as an investment advisor to both individual and institutional investors
and manages a variety of stock, bond and money market mutual funds.
Target Corporation, headquartered in Minneapolis, Minnesota, is a general
merchandise retailer. The company specializes in discount stores featuring
moderately-priced merchandise and groceries. The company also offers a fully
integrated online business.
Walmart, Inc., headquartered in Bentonville, Arkansas, is an international
consumer staples company. The company owns and operates retail department
stores, supercenters, full-line supermarkets and warehouse clubs.
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Alphabet Inc. (Class C), headquartered in Mountain View, California, operates
as a holding company. The company, through its subsidiaries, provides web-
based search, maps, advertisements, software applications, mobile operating
systems, consumer content, enterprise solutions, commerce and hardware
products. The company was created in 2015 as the parent company of Google Inc.
and several other companies that were owned by or tied to Google Inc.
Ameriprise Financial, Inc., headquartered in Minneapolis, Minnesota, is a
financial services company. Through its subsidiaries, the company provides
financial planning, asset management and insurance services to individuals,
businesses and institutions.
Apple Inc., headquartered in Cupertino, California, is a technology company.
The company designs, manufactures and markets personal computers, related
personal computing and mobile communication devices through the company's
retail and online stores, resellers and third-party wholesalers.
Citrix Systems, Inc., headquartered in Fort Lauderdale, Florida, provides
virtualization, mobility management, networking and Software as a Service
solutions worldwide. The company's Enterprise and Service Provider division
supplies multi-user application server products that enable customers the
flexibility to deliver desktops and applications as cloud services. The
company's product lines include "ShareFile" and "GoToMeeting."
The Clorox Company, headquartered in Oakland, California, manufactures and
sells household products, including the brand names "Armor All," "Black Flag,"
"Brita," "Clorox," "Combat," "Fresh Step," "Glad," "Hidden Valley," "Jonny
Cat," "Kingsford," "Liquid-Plumr," "Pine-Sol," "S.O.S.," "STP," "Scoop Away"
and "Tilex."
Dollar General Corporation, headquartered in Goodlettsville, Tennessee,
operates a chain of discount retail stores located primarily in the southern,
southwestern, midwestern and eastern United States. The company offers a broad
Page 20
selection of merchandise, including consumable products such as food, paper
and cleaning products, health and beauty products and pet supplies, and non-
consumable products such as seasonal merchandise.
Domino's Pizza, Inc., headquartered in Ann Arbor, Michigan, operates a network
of company-owned and franchise Domino's Pizza stores throughout the United
States and internationally. The company also owns regional dough manufacturing
and distribution centers.
Electronic Arts Inc., headquartered in Redwood City, California, creates,
markets, and distributes interactive entertainment software for a variety of
hardware platforms. The company also produces casual video games and sells
digital content.
Expeditors International of Washington, Inc., headquartered in Seattle,
Washington, is engaged in the business of logistics management, including
international freight forwarding and consolidation, for both air and ocean
freight. The company operates globally.
Facebook, Inc. (Class A), headquartered in Menlo Park, California, is an
information technology company. The company designs and operates various
social media products that enable people to connect and share data through
mobile devices and other platforms.
IDEXX Laboratories, Inc., headquartered in Westbrook, Maine, develops,
manufactures and markets biotechnology-based detection systems primarily for
animal health applications. The company also develops and sells point-of-care
veterinary diagnostic products. The company markets its products worldwide.
Kimberly-Clark Corporation, headquartered in Dallas, Texas, is an
international company which manufactures and markets tissue products, personal
care and health care products, as well as business, correspondence and
technical papers. The company sells its products under the brand names
"Depend," "Huggies," "Kleenex," "Kotex," "Page" and "Tecnol."
Lowe's Companies, Inc., headquartered in Mooresville, North Carolina, a home
improvement retailer, operates stores which sell building commodities and
millwork; heating, cooling and water systems; home decorating and illumination
products; kitchens, bathrooms and laundries; yard, patio and garden products;
tools; home entertainment products; and special order products.
Masco Corporation, headquartered in Livonia, Michigan, is a manufacturer of
home improvement and building products. The company's products are sold
through hardware stores, mass merchandisers, homebuilders and other outlets
for consumers and contractors.
Mettler-Toledo International Inc., incorporated in the United States and
dually headquartered in Greifensee, Switzerland and Columbus, Ohio, supplies
precision instruments and services worldwide. The company offers various
laboratory and industrial instruments, and retail weighing instruments for use
in laboratory, industrial and food retailing applications.
Monster Beverage Corporation, headquartered in Corona, California, through its
subsidiaries, develops, markets and distributes "alternative" beverages
worldwide. The company's products include non-carbonated ready-to-drink iced
teas, lemonades, juice cocktails, dairy and coffee drinks, energy drinks,
sports drinks and flavored sparkling beverages.
Old Dominion Freight Line, Inc., headquartered in Thomasville, North Carolina,
is a motor carrier. The company operates inter- and multi-regionally and
transports less-than-truckload shipments of general commodities, including
consumer goods, textiles and capital goods.
PPL Corporation, headquartered in Allentown, Pennsylvania, is an energy and
utility holding company that, through its subsidiaries, generates electricity
in power plants in the northeastern and western United States and Kentucky.
The company also provides electricity service in the United Kingdom.
Regeneron Pharmaceuticals, Inc., headquartered in Tarrytown, New York, is a
biopharmaceutical company. The company discovers, develops and commercializes
medicines for the treatment of serious medical conditions in the United States.
S&P Global Inc., headquartered in New York, New York, is a financial
intelligence company. The company provides clients with information regarding
credit ratings, benchmarks, and analytics to capital and commodity markets
worldwide.
Page 21
T. Rowe Price Group, Inc., headquartered in Baltimore, Maryland, is a
financial services holding company. The company, through its subsidiaries,
serves as an investment advisor to both individual and institutional investors
and manages a variety of stock, bond and money market mutual funds.
Teradyne, Inc., headquartered in North Reading, Massachusetts, designs,
develops and manufactures electronic test systems and software for use in the
electronics industry. The company's products are also used in the
military/aerospace, telecommunications and computer industries.
WEC Energy Group, Inc., headquartered in Milwaukee, Wisconsin, a holding
company, is principally engaged in the generation, transmission, distribution
and sale of electric energy, gas and steam to customers in Wisconsin and the
upper peninsula of Michigan.
Xcel Energy Inc., headquartered in Minneapolis, Minnesota, is engaged in the
generation, transmission and distribution of electricity and natural gas. The
company generates electricity using coal, nuclear, natural gas, hydro, solar,
oil and refuse, biomass and wind energy sources.
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Acadia Healthcare Company, Inc., headquartered in Franklin, Tennessee,
provides behavioral health care services. Together with its subsidiaries, the
company acquires and develops behavioral health care facilities and provides
referral networks.
American Equity Investment Life Holding Company, headquartered in West Des
Moines, Iowa, is engaged in the development, marketing, issuance and
administration of annuities and life insurance products. Through its
subsidiaries, the company is licensed to sell its products throughout the
United States.
Ameris Bancorp, headquartered in Atlanta, Georgia, operates as the bank
holding company for Ameris Bank. The company provides banking services to
retail and commercial customers across segments of the southern United States.
The Andersons, Inc., headquartered in Maumee, Ohio, is a diversified company
with roots in the agricultural industry. The company is involved in the
storage and merchandising of grains, the operation of ethanol production
facilities, the sale and maintenance of railcars, the manufacture of
fertilizers and other corncob-based products, and the operation of retail
stores.
Associated Banc-Corp, headquartered in Green Bay, Wisconsin, is a bank holding
company whose subsidiaries provide services through locations in Wisconsin,
Illinois and Minnesota. The company provides a variety of financial products
and services, including deposit, checking and lending services for consumers
and businesses, equipment leases and investment management services.
Assured Guaranty Ltd., headquartered in Hamilton, Bermuda, through its
subsidiaries, provides credit protection products to public finance,
infrastructure, and finance markets in the United States and internationally.
The company's products protect holders of debt instruments and other monetary
obligations from defaults in scheduled payments.
BankUnited, Inc., headquartered in Miami Lakes, Florida, is a bank holding
company which, through its subsidiaries, offers a range of financial services
and products, including commercial, business and personal banking.
Bonanza Creek Energy, Inc., headquartered in Denver, Colorado, is an oil and
natural gas company. The company's assets and operations are located in the
Rocky Mountain region and in southern Arkansas.
Brighthouse Financial, Inc., headquartered in Charlotte, North Carolina, is an
financial services company. The company provides investment management and
insurance services in the United States.
Bristow Group Inc., headquartered in Houston, Texas, is a helicopter
transportation company. The company primarily transports personnel to and from
offshore oil drilling rigs and platforms worldwide and also leases helicopters
to third parties for use in local markets.
CNO Financial Group, Inc., headquartered in Carmel, Indiana, is an insurance
company. Together with its subsidiaries, the company develops, markets and
administers health insurance, annuity, life insurance and other insurance
products for senior and middle-income markets in the United States.
Cousins Properties Incorporated, headquartered in Atlanta, Georgia, is a real
estate investment trust engaged in the acquisition, financing, development,
management and leasing of office, medical office, retail and land development
projects. The company also holds several tracts of strategically-located
undeveloped land.
Page 22
Customers Bancorp, Inc., headquartered in Wyomissing, Pennsylvania, through
its subsidiaries, provides various banking and financial products and services
to small businesses and consumers. The company also provides a range of
commercial lending products.
Dana Inc., headquartered in Maumee, Ohio, engages in the design, manufacture
and distribution of driveline, sealing and thermal management products for
vehicle manufacturers worldwide. The company serves the light vehicle, heavy
truck, off-highway and industrial markets.
Domtar Corporation, headquartered in Fort Mill, South Carolina, engages in the
design, manufacture, marketing and distribution of fiber-based products. The
company's products include uncoated freesheet paper, specialty and packaging
papers, and absorbent hygiene products.
Dorian LPG Ltd., incorporated in the Marshall Islands and headquartered in
Stamford, Connecticut, together with its subsidiaries, is an international
liquefied petroleum gas shipping company. The company owns and operates a
fleet of gas carriers of varying sizes.
East West Bancorp, Inc., headquartered in Pasadena, California, is the holding
company for East West Bank and other subsidiaries. The company provides
personal and commercial banking services to small and medium-sized businesses,
business executives, professionals and other individuals.
F.N.B. Corporation, headquartered in Pittsburgh, Pennsylvania, is a financial
holding company that provides a variety of financial services to individuals
and small to medium-sized businesses. The company, through its subsidiaries,
offers services in Pennsylvania, Kentucky, Maryland, Ohio, Tennessee and West
Virginia.
First American Financial Corporation, headquartered in Santa Ana, California,
provides various financial services in the United States and internationally,
operating in two segments: Title Insurance and Services, and Specialty
Insurance.
First Commonwealth Financial Corporation, headquartered in Indiana,
Pennsylvania, is a financial holding company. The company provides consumer
and commercial banking services to individuals and small and mid-sized
businesses in central and western Pennsylvania through its operating
subsidiaries.
First Financial Bancorp., headquartered in Cincinnati, Ohio, is a bank holding
company for First Financial Bank. The company provides personal and commercial
banking services, including deposits, loans, credit cards and asset management
services, throughout Ohio, Indiana and Kentucky.
Fulton Financial Corporation, headquartered in Lancaster, Pennsylvania, is a
multi-bank financial holding company that provides a full range of banking and
financial services to businesses and consumers through its wholly-owned
banking subsidiaries. The company has operations in Pennsylvania, Delaware,
Maryland, New Jersey and Virginia.
G-III Apparel Group, Ltd., headquartered in New York, New York, engages in the
design, manufacture, import and marketing of outerwear and sportswear for men
and women in the United States.
GATX Corporation, headquartered in Chicago, Illinois, is a holding company
whose subsidiaries engage in the leasing and management of railroad tank cars
and other specialized railcars. The company also arranges and services the
financing of equipment and other capital assets and provides logistics and
supply chain services.
Graham Holdings Company, headquartered in Arlington, Virginia, is a
diversified media organization. The company's operations include newspaper
publishing, television broadcasting, educational services and magazine
publishing.
The Greenbrier Companies, Inc., headquartered in Lake Oswego, Oregon, is a
supplier of transportation equipment and services to the railroad and related
industries. The company produces railcars, tank cars and marine vessels. The
company also offers management services for leasing and transportation
companies in North America.
Independent Bank Group, Inc., headquartered in McKinney, Texas, is a bank
holding company. The company provides banking products and services throughout
the United States.
Kite Realty Group Trust, headquartered in Indianapolis, Indiana, is a real
estate investment trust that engages in the acquisition, development,
expansion, construction, ownership, leasing, operation and management of
neighborhood and community shopping centers, and commercial real estate
properties in the United States.
Kraton Corp., headquartered in Houston, Texas, is engaged in the production of
engineered polymers and styrenic block copolymers used in various products,
including adhesives, coatings, sealants and lubricants, packaging, roofing and
footwear products.
Meta Financial Group, Inc., headquartered in Sioux Falls, South Dakota, is a
holding company. Together with its subsidiaries, the company offers various
banking products and services throughout the United States.
Page 23
MTS Systems Corporation, headquartered in Eden Prairie, Minnesota, is a global
supplier of testing products that help customers accelerate and improve their
design, development and manufacturing processes.
Navient Corporation, headquartered in Wilmington, Delaware, holds a portfolio
of education loans insured or guaranteed under the Federal Family Education
Loan Program. The company also services and collects education loans for
banks, credit unions and non-profit education lenders.
Office Properties Income Trust, headquartered in Newton, Massachusetts, is a
real estate investment trust. The company owns and operates office buildings
leased primarily to government tenants.
Old National Bancorp, headquartered in Evansville, Indiana, operates as the
holding company for Old National Bank, which provides various financial
services to individuals and commercial customers. The company has operations
in Indiana, Illinois, Michigan and Kentucky.
Olin Corporation, headquartered in Clayton, Missouri, manufactures bleach
products that have various applications in the household, recreational,
industrial, paper, textile and other manufacturing industries. The company
also manufactures and distributes ammunition, reloading components and
industrial cartridges for various weaponry.
Photronics, Inc., headquartered in Brookfield, Connecticut, manufactures and
sells photomasks: photographic quartz plates containing microscopic images of
electronic circuits used as masters to transfer circuit patterns onto
semiconductor wafers. The company operates globally.
Range Resources Corporation, headquartered in Fort Worth, Texas, engages in
the exploration, development and acquisition of oil and gas properties
primarily in the southwestern, Appalachian and Gulf Coast regions of the
United States.
Rayonier Advanced Materials Inc., headquartered in Jacksonville, Florida, is a
performance fibers manufacturer. The company produces and sells specialty
cellulose fibers which are used as raw materials to manufacture a range of
consumer products.
Reinsurance Group of America, Incorporated, headquartered in Chesterfield,
Missouri, is an insurance holding company that, through its subsidiaries,
provides traditional and non-traditional reinsurance to clients. Products
include individual and group life and health, disability and critical illness
reinsurance, longevity reinsurance, asset-intensive reinsurance and financial
reinsurance.
Renasant Corporation, headquartered in Tupelo, Mississippi, is the parent of
Renasant Bank and Renasant Insurance. The company operates banking and
insurance offices in Mississippi, Alabama, Georgia, Florida and Tennessee. The
company provides a range of deposit products, loans, and other services, as
well as life, health and disability, and long-term care insurance.
RPT Realty, headquartered in New York, New York, is a real estate investment
trust. The company engages in the acquisition, development, management and
leasing of shopping, retail and single tenant properties in the United States.
Ryder System, Inc., headquartered in Miami, Florida, is a provider of
transportation and supply chain management solutions.
Sabra Health Care REIT, Inc., headquartered in Irvine, California, is a real
estate investment trust. The company owns and invests in real estate
properties for the health care industry through its subsidiaries, including
skilled nursing facilities, assisted living and independent living facilities,
mental health facilities and a continuing care retirement community.
SEACOR Holdings Inc., headquartered in Fort Lauderdale, Florida, is a provider
of offshore marine services to the oil and gas exploration and production
industry.
Seneca Foods Corporation, headquartered in Marion, New York, produces and
distributes packaged fruits and vegetables worldwide. The company's products
include canned, frozen and bottled produce and snack chips.
Service Properties Trust, headquartered in Newton, Massachusetts, is a self-
managed real estate investment trust. The company buys, owns and leases hotels
and travel centers to unaffiliated hotel operators.
Simmons First National Corporation, headquartered in Pine Bluff, Arkansas,
through its subsidiaries, provides a range of banking products and services to
individual and corporate customers in Arkansas, Missouri and Kansas. The
company's products include checking and savings accounts, time deposits,
commercial and consumer loans, and investment services.
Sterling Bancorp, headquartered in Montebello, New York, together with its
subsidiaries, provides clients with a full range of commercial, business and
consumer banking products and services. The bank operates primarily in the New
York and New Jersey area.
Page 24
Stifel Financial Corp., headquartered in St. Louis, Missouri, together with
its subsidiaries, is a bank holding company. The company offers securities-
related financial and money management services throughout the United States
and parts of Europe.
Synovus Financial Corp., headquartered in Columbus, Georgia, is a financial
services and bank holding company. The company, through its subsidiaries,
provides retail and commercial banking, mortgage services, investment and
brokerage services, commercial and real estate loans, automated banking
services and bank credit card services.
Telephone and Data Systems, Inc., headquartered in Chicago, Illinois, is a
diversified telecommunications services company with wireless and wireline
services throughout the United States. The company also provides equipment and
repair services.
TRI Pointe Group, Inc., headquartered in Irvine, California, designs,
constructs and sells several brands of single-family homes in the United
States. The company also develops and sells land and lots.
TTM Technologies, Inc., headquartered in Santa Ana, California, is a
manufacturer of printed circuit boards used in electronic products such as
routers, switches, servers, memory modules and cellular base stations. The
company's customers include original equipment manufacturers and electronic
manufacturing services companies in various industries.
UMB Financial Corporation, headquartered in Kansas City, Missouri, is a multi-
bank holding company. The company provides banking and other financial
services throughout the United States.
Urban Edge Properties, headquartered in New York, New York, is a real estate
investment trust which develops and improves shopping centers in urban
communities. The company's assets are located throughout the United States.
Valley National Bancorp, headquartered in Wayne, New Jersey, is a regional
bank holding company with branch locations in New Jersey, Alabama, Florida and
New York. The company offers a variety of financial services products,
including consumer lending, commercial lending and investment management.
Veritex Holdings, Inc., headquartered in Dallas, Texas, is a bank holding
company. Through its wholly-owned subsidiary, Veritex Community Bank, the
company offers community banking services in metropolitan areas in Texas.
Webster Financial Corporation, headquartered in Waterbury, Connecticut,
together with its subsidiary, delivers financial services to individuals,
families and businesses. The company also provides equipment financing,
mortgage origination and financial advisory services to individuals and
companies located primarily in southern New England and Westchester County,
New York.
Wintrust Financial Corporation, headquartered in Rosemont, Illinois, is a bank
holding company whose subsidiaries provide community-based banking services in
the Chicago metropolitan area and in southeastern Wisconsin. The company also
offers specialty financing services such as short-term accounts receivable
financing.
World Fuel Services Corporation, headquartered in Miami, Florida, together
with its subsidiaries, is a global fuel logistics, transaction management and
payment processing company. The company services the aviation, marine and land
transportation industries.
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AbbVie Inc., headquartered in North Chicago, Illinois, is a research-based
pharmaceuticals company. The company discovers, develops and commercializes
advanced therapies in immunology, oncology, women's health, neuroscience and
other areas.
Air Lease Corporation, headquartered in Los Angeles, California, operates an
aircraft leasing company. The company purchases commercial aircraft to lease
to airlines around the world, including Asia, the Pacific Rim, Latin America,
the Middle East and Eastern Europe.
The Andersons, Inc., headquartered in Maumee, Ohio, is a diversified company
with roots in the agricultural industry. The company is involved in the
storage and merchandising of grains, the operation of ethanol production
facilities, the sale and maintenance of railcars, the manufacture of
fertilizers and other corncob-based products, and the operation of retail
stores.
AT&T Inc., headquartered in Dallas, Texas, is a telecommunications holding
company in the United States. The company is a worldwide provider of IP-based
communications services to business and a leading U.S. provider of high-speed
DSL Internet, local and long-distance voice services, wireless services,
directory publishing and advertising services.
Page 25
Big Lots, Inc., headquartered in Columbus, Ohio, engages in the retail of
closeout merchandise in the United States. The company offers a variety of
consumables, seasonal products, furniture, housewares, toys and gifts.
Carpenter Technology Corporation, headquartered in Philadelphia, Pennsylvania,
manufactures, fabricates and distributes specialty metals and engineered
products. The company's products include stainless steels, special alloys,
ceramics, titanium products and metal powders.
Citizens Financial Group, Inc., headquartered in Providence, Rhode Island,
provides a full range of commercial banking services for retail customers. The
company offers consumer loans, commercial loans and mortgage loans.
Delek US Holdings, Inc., headquartered in Brentwood, Tennessee, is a
diversified downstream energy company. The company gathers, refines,
transports, stores and markets petroleum. The company also operates
convenience stores, asphalt terminals, and biodiesel fuel producers.
Dillard's, Inc. (Class A), headquartered in Little Rock, Arkansas, operates
traditional department stores located primarily in the midwestern,
southeastern and southwestern United States. The stores offer fashion apparel
and home furnishings.
EOG Resources, Inc., headquartered in Houston, Texas, along with its
subsidiaries, explores for, develops, produces and markets crude oil and
natural gas. The company operates in the United States, Canada, Trinidad and
other international areas.
Exelon Corporation, headquartered in Chicago, Illinois, is an electric utility
holding company. Together with its subsidiaries, the company owns, contracts
and invests in electric generating facilities such as nuclear, hydroelectric
generation, wind and solar facilities.
Graham Holdings Company, headquartered in Arlington, Virginia, is a
diversified media organization. The company's operations include newspaper
publishing, television broadcasting, educational services and magazine
publishing.
The Greenbrier Companies, Inc., headquartered in Lake Oswego, Oregon, is a
supplier of transportation equipment and services to the railroad and related
industries. The company produces railcars, tank cars and marine vessels. The
company also offers management services for leasing and transportation
companies in North America.
Hewlett Packard Enterprise Company, headquartered in San Jose, California, is
a technology solutions provider offering servers, management software, storage
solutions and networking products to business enterprises. The company also
offers consultation, outsourcing and support services.
HollyFrontier Corporation, headquartered in Dallas, Texas, is an independent
petroleum refiner producing, transporting and storing high-value light
products such as gasoline, diesel fuel and jet fuel through its affiliates.
The company's refineries serve markets in the Mid-Continent, Southwest and
Rocky Mountain regions of the United States.
Hollysys Automation Technologies Ltd., incorporated in the British Virgin
Islands and headquartered in Beijing, China, is an automation and control
systems manufacturer. The company's segments include industrial automation,
rail transportation, mechanical and electrical.
Imperial Oil Limited, headquartered in Calgary, Canada, explores for, produces
and refines natural gas and petroleum products throughout Canada. The company
also manufactures petrochemicals.
Juniper Networks, Inc., headquartered in Sunnyvale, California, provides
Internet infrastructure solutions for Internet service providers and other
telecommunications service providers. The company delivers next generation
Internet backbone routers that are designed for service provider networks.
Kronos Worldwide, Inc., headquartered in Dallas, Texas, manufactures titanium
dioxide pigments which are used to whiten, brighten and add opacity to various
products, such as cosmetics, paints, plastics and inks.
Lincoln National Corporation, headquartered in Radnor, Pennsylvania, is a
holding company that, through subsidiary companies, operates multiple
insurance and investment management businesses. The company distributes its
products through intermediaries.
LyondellBasell Industries N.V., headquartered in Rotterdam, the Netherlands,
is an independent chemical company. Together with its subsidiaries, the
company manufactures and markets chemicals and polymers used for packaging,
durable textiles, clean fuels, medical applications and automotive parts.
Magna International Inc. (Class A), headquartered in Aurora, Canada, is a
global supplier of technologically advanced automotive components, systems and
complete modules.
Page 26
MetLife, Inc., headquartered in New York, New York, provides insurance and
financial services to a range of individual and institutional customers. The
company has operations in the United States and other countries in the Asia-
Pacific region, Latin America and Europe.
National HealthCare Corporation, headquartered in Murfreesboro, Tennessee, is
engaged in the operation of skilled nursing facilities with associated
assisted living and independent living centers.
NorthWestern Corporation, headquartered in Sioux Falls, South Dakota, doing
business as NorthWestern Energy and together with its subsidiaries, provides
electricity and natural gas in Montana, South Dakota, and Nebraska.
NRG Energy, Inc., headquartered in Princeton, New Jersey, operates as a
wholesale power generation company. The company sells and delivers energy and
energy products and services primarily in the United States.
Pfizer Inc., headquartered in New York, New York, is a research-based
pharmaceutical company. The company develops, manufactures and sells
medicines, vaccines, medical devices and consumer health care products
worldwide.
Phibro Animal Health Corporation (Class A), headquartered in Teaneck, New
Jersey, operates as a diversified developer that manufactures and markets a
variety of animal health and mineral nutrition products for food animals
including poultry, swine, beef and dairy cattle and aquaculture. The company
operates in the Animal Health, Mineral Nutrition and Performance Products
segments.
Ryder System, Inc., headquartered in Miami, Florida, is a provider of
transportation and supply chain management solutions.
Seagate Technology Plc, headquartered in Dublin, Ireland, is engaged in the
design, manufacture and marketing of rigid disc drives, used as the primary
medium for storing electronic information in systems ranging from desktop
computers and consumer electronics to data centers. The company also offers
data protection, online backup and data recovery services.
Sinclair Broadcast Group, Inc., headquartered in Hunt Valley, Maryland, a
television broadcasting company, engages in the ownership and provision of
programming, operating and sales services to television stations in the United
States.
South Jersey Industries, Inc., headquartered in Folsom, New Jersey, owns South
Jersey Gas Company, a public utility, and acquires and develops non-utility
lines of business.
Steel Dynamics, Inc., headquartered in Fort Wayne, Indiana, is a manufacturer
of steel products and a metals recycler. The company operates in three
segments: steel operations, metals recycling and steel fabrication.
Telephone and Data Systems, Inc., headquartered in Chicago, Illinois, is a
diversified telecommunications services company with wireless and wireline
services throughout the United States. The company also provides equipment and
repair services.
Trinity Industries, Inc., headquartered in Dallas, Texas, provides various
products and services for the transportation, industrial, construction and
energy sectors in the United States and internationally. The company's
products include highway guardrail and safety products, tank and freight
railcars, tank barges and ready-mix concrete.
Tyson Foods, Inc. (Class A), headquartered in Springdale, Arkansas, produces,
processes and markets a variety of food products consisting of value-enhanced
chicken, fresh and frozen chicken, beef and pork products and prepared foods.
The company also produces flour and corn tortillas, taco shells and high-
protein animal food ingredients. The company's products are marketed through
its food service, wholesale membership clubs, retail and international
divisions.
Universal Corporation, headquartered in Richmond, Virginia, is an independent
leaf tobacco merchant that has additional operations in agri-products and also
distributes lumber and building products. The company markets its products
globally.
Unum Group, headquartered in Chattanooga, Tennessee, is the parent holding
company for a group of insurance and non-insurance companies that collectively
operate throughout North America and the United Kingdom. The company provides
long-term and short-term disability, group, individual and corporate-owned
life insurance and pension insurance products.
ViacomCBS Inc., headquartered in New York, New York, together with its
subsidiaries, is a mass media company. The company's operations span the media
and entertainment industries and include cable networks, content production
and distribution, television and radio stations, Internet-based businesses and
consumer publishing.
Walgreens Boots Alliance, Inc., headquartered in Deerfield, Illinois, with its
subsidiaries, operates a global network of pharmacies with a presence in more
than 25 countries. The company provides consumer goods and services, health
Page 27
and wellness services, prescription and non-prescription drugs, general
merchandise, household items, personal care, photofinishing, candy and beauty
care, as well as specialty pharmacy services for chronic health issues.
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Artisan Partners Asset Management Inc., headquartered in Milwaukee, Wisconsin,
is an investment management firm. The company, together with its subsidiaries,
is focused on providing high value added investment strategies to
sophisticated investors worldwide.
Boise Cascade Company, headquartered in Boise, Idaho, is a building products
company. The company manufactures wood products and is a wholesale distributor
of building materials.
The Buckle, Inc., headquartered in Kearney, Nebraska, is a retailer of casual
apparel for young men and women. The company markets mostly brand name
apparel, including denims, sportswear, outerwear, shoes and accessories.
Compass Minerals International, Inc., headquartered in Overland Park, Kansas,
is a salt producer in North America and the United Kingdom. The company also
produces sulfate of potash plant fertilizer and magnesium chloride.
Federated Hermes, Inc. (Class B), headquartered in Pittsburgh, Pennsylvania,
and its subsidiaries sponsor, market and provide investment advisory,
distribution and administrative services primarily to mutual funds. The
company also provides services to corporations, employee benefit plans and
others.
Greif, Inc., headquartered in Delaware, Ohio, engages in the manufacture and
sale of industrial packaging products, container board and corrugated products
worldwide.
H&R Block, Inc., headquartered in Kansas City, Missouri, is a holding company
whose subsidiaries provide tax-related services, investment services through
broker/dealers, mortgage services, personal productivity software, accounting
and consulting services to business clients.
Hanesbrands Inc., headquartered in Winston-Salem, North Carolina, is a
consumer goods company that engages in the design, manufacture, sourcing and
sale of apparel essentials for men, women and children in the United States
and internationally.
HNI Corporation, headquartered in Muscatine, Iowa, is a provider of office
furniture and hearth products primarily through dealers, wholesalers and
retail superstores. The company operates throughout the United States and
Canada.
HP Inc., headquartered in Palo Alto, California, designs, makes and services
equipment and systems for measurement, computation and communications
including computer systems, personal computers, printers, calculators,
electronic test equipment, medical electronic equipment, electronic components
and instrumentation for chemical analysis.
NRG Energy, Inc., headquartered in Princeton, New Jersey, operates as a
wholesale power generation company. The company sells and delivers energy and
energy products and services primarily in the United States.
OneMain Holdings, Inc., headquartered in Evansville, Indiana, provides
consumer finance and insurance products and services. The company offers a
variety of loans, credit and insurance products throughout the United States.
Pinnacle West Capital Corporation, headquartered in Phoenix, Arizona, owns
Arizona Public Service Company, an electric utility that provides retail and
wholesale electric service to nearly all of Arizona. The company is engaged in
the generation and distribution of electricity from coal, nuclear, oil, gas
and solar resources.
PPL Corporation, headquartered in Allentown, Pennsylvania, is an energy and
utility holding company that, through its subsidiaries, generates electricity
in power plants in the northeastern and western United States and Kentucky.
The company also provides electricity service in the United Kingdom.
Rent-A-Center, Inc., headquartered in Plano, Texas, operates franchised and
company-owned rent-to-own stores. The company's stores offer home electronics,
appliances, furniture and accessories primarily to individuals under flexible
rental purchase agreements that allow the customer to obtain ownership at the
conclusion of an agreed upon rental period.
Page 28
Schweitzer-Mauduit International, Inc., headquartered in Alpharetta, Georgia,
engages in the manufacture and sale of paper and reconstituted tobacco
products to the tobacco industry, as well as specialized paper products for
use in other applications. Other applications include vacuum cleaner bags,
alkaline batteries, printing and packaging.
Steelcase Inc., headquartered in Grand Rapids, Michigan, is the world's
largest manufacturer and provider of office furniture, office furniture
systems and related products and services.
Unum Group, headquartered in Chattanooga, Tennessee, is the parent holding
company for a group of insurance and non-insurance companies that collectively
operate throughout North America and the United Kingdom. The company provides
long-term and short-term disability, group, individual and corporate-owned
life insurance and pension insurance products.
Verizon Communications Inc., headquartered in New York, New York, is an
integrated telecommunications company. The company provides wireline voice and
data services, wireless services and Internet service worldwide. Through its
subsidiary, the company also provides network services for the U.S. federal
government including business phone lines, data services, telecommunications
equipment and pay phones.
Xerox Holdings Corporation, headquartered in Norwalk, Connecticut, is a
holding company. Through its subsidiaries, the company designs, develops and
sells document management systems and solutions worldwide.
INTERNATIONAL STOCKS
Algonquin Power & Utilities Corp., headquartered in Oakville, Canada, is a
utilities company. The company owns and operates a diversified portfolio of
regulated and non-regulated generation, distribution, and transmission utility
assets.
Atlas Corp., headquartered in Vancouver, Canada, is a shipping company. The
company operates a fleet of containerships.
The Bank of N.T. Butterfield & Son Limited, headquartered in Hamilton,
Bermuda, is a financial services company. The company provides business and
personal loans, mortgages, insurance, and corporate banking worldwide.
BHP Group Ltd (ADR), incorporated in the United Kingdom and headquartered in
Melbourne, Australia, operates as an international diversified natural
resources company. The company explores for, develops and markets petroleum,
potash, aluminum, nickel, manganese ore and alloys, copper, silver and lead,
among other resources. The company serves various utilities, steel producers
and industrial users.
Centrais Eletricas Brasileiras S.A. (ADR), headquartered in Rio de Janeiro,
Brazil, together with its subsidiaries, engages in the generation,
transmission, and distribution of electric energy in Brazil.
CNOOC Limited (ADR), incorporated in Hong Kong and headquartered in Beijing,
China, through its subsidiaries, engages in the exploration, development, and
production of crude oil and natural gas. The company has operations throughout
the world.
Euronav N.V., headquartered in Antwerp, Belgium, is a tanker company which
engages in the storage and ocean transport of crude oil and petroleum
products. The company operates mainly in Europe.
Frontline Ltd., headquartered in Hamilton, Bermuda, is an international
shipping company. Together with its subsidiaries, the company is engaged
primarily in the ownership and operation of oil tankers and, to a lesser
extent, the charter, purchase and sale of vessels.
Invesco Ltd., incorporated in Bermuda and headquartered in Atlanta, Georgia,
is an investment management group specializing in investment management
services covering equities, fixed-income products, and alternative investments
such as real estate and absolute return strategies.
KB Financial Group Inc. (ADR), headquartered in Seoul, South Korea, is a
financial holding company. Through its subsidiaries, primarily the Kookmin
Bank, the company provides commercial banking services in Korea to
individuals, small- and medium-sized businesses and larger corporate clients.
KT Corporation (ADR), headquartered in Seongnam, South Korea, is a South
Korean integrated wired and wireless telecommunication service provider. The
company provides telecommunication services including local, long distance,
satellite communication, data transmission and wireless telephone services.
LyondellBasell Industries N.V., headquartered in Rotterdam, the Netherlands,
is an independent chemical company. Together with its subsidiaries, the
company manufactures and markets chemicals and polymers used for packaging,
durable textiles, clean fuels, medical applications and automotive parts.
Page 29
Mobile TeleSystems PJSC (ADR), headquartered in Moscow, Russia, is a
telecommunications group providing mobile communications and fixed voice
telecommunications services in Russia, eastern Europe and central Asia. The
company also offers broadband and pay TV, as well as content and entertainment
services.
ORIX Corporation (ADR), headquartered in Minato-Ku, Japan, is a worldwide
provider of financial services. The company provides real estate, life
insurance, corporate finance and banking services.
PLDT Inc. (ADR), headquartered in Makati City, the Philippines, together with
its subsidiaries, provides telecommunications services in the Philippines. The
company offers wireless and fixed line services, information technology
outsourcing and services for Internet applications.
POSCO (ADR), headquartered in Seoul, South Korea, manufactures and sells
various steel products used mainly in construction, automobile and
shipbuilding industries. The company's products include hot rolled and cold
rolled products, plates, wire rods, silicon steel sheets and stainless steel
products.
Rio Tinto Plc (ADR), headquartered in London, England, is engaged in finding,
mining and processing the earth's mineral resources. The company's major
products include aluminum, copper, diamonds, energy products (coal and
uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc and
zircon) and iron ore.
Seagate Technology Plc, headquartered in Dublin, Ireland, is engaged in the
design, manufacture and marketing of rigid disc drives, used as the primary
medium for storing electronic information in systems ranging from desktop
computers and consumer electronics to data centers. The company also offers
data protection, online backup and data recovery services.
SK Telecom Co., Ltd. (ADR), headquartered in Seoul, South Korea, provides
wireless telecommunications services, including cellular and paging services,
in Korea. In addition, the company offers broadband Internet and fixed-line
telephone services.
Triton International Limited, headquartered in Hamilton, Bermuda, leases
intermodal containers and chassis. Together with its subsidiaries, the company
both leases and trades shipping equipment.
REITs
Arbor Realty Trust, Inc., headquartered in Uniondale, New York, together with
its wholly-owned subsidiaries, is a real estate investment trust. The company
specializes in multifamily and commercial real estate-related bridge and
mezzanine loans.
Boston Properties, Inc., headquartered in Boston, Massachusetts, is a self-
managed real estate investment trust. The company owns, manages and develops
office properties in the United States with significant presence in Boston,
Los Angeles, New York, San Francisco and Washington, D.C.
Cousins Properties Incorporated, headquartered in Atlanta, Georgia, is a real
estate investment trust engaged in the acquisition, financing, development,
management and leasing of office, medical office, retail and land development
projects. The company also holds several tracts of strategically-located
undeveloped land.
Four Corners Property Trust, Inc., headquartered in Mill Valley, California,
is a self-administered real estate investment trust. The company is primarily
engaged in the ownership, acquisition and leasing of restaurant and retail
properties.
Gaming and Leisure Properties, Inc., headquartered in Wyomissing,
Pennsylvania, is a real estate investment trust. The company owns and leases
casino facilities.
The GEO Group, Inc., headquartered in Boca Raton, Florida, is a real estate
investment trust that provides private services in the management of
correctional, detention, re-entry facilities and the provision of community-
based services and youth services in the United States, Australia, Canada,
South Africa and the United Kingdom. The company's facilities include maximum,
medium, and minimum security prisons; immigration detention centers; and
community-based re-entry facilities.
Highwoods Properties, Inc., headquartered in Raleigh, North Carolina, is a
real estate investment trust which acquires, develops, manages and leases
suburban office and industrial properties through its operating partnership
and subsidiaries. The company operates in the southeastern and midwestern
regions of the United States.
Industrial Logistics Properties Trust, headquartered in Newton, Massachusetts,
is a real estate investment trust. The company owns and leases industrial and
logistics properties throughout the United States.
Page 30
Innovative Industrial Properties, Inc., headquartered in San Diego,
California, is a real estate investment trust that owns and leases industrial
real estate assets. The company focuses on the acquisition, ownership and
management of specialized industrial properties for the regulated medical-use
cannabis industry.
Lexington Realty Trust, headquartered in New York, New York, is a self-managed
real estate investment trust that acquires, owns and manages a geographically
diverse portfolio of net leased office, industrial and retail properties.
Life Storage, Inc., headquartered in Williamsville, New York, is a self-
managed real estate investment trust that owns and operates self-storage
facilities in the United States.
LTC Properties, Inc., headquartered in Westlake Village, California, is a self-
managed real estate investment trust that primarily invests in long-term care
and other healthcare-related properties through mortgage loans, property lease
transactions and other investments.
National Health Investors, Inc., headquartered in Murfreesboro, Tennessee, is
a real estate investment trust that invests in income-producing health care
properties primarily in the long-term care industry.
Omega Healthcare Investors, Inc., headquartered in Hunt Valley, Maryland, is a
real estate investment trust that invests in income-producing health care
facilities, principally those that provide long-term care.
Piedmont Office Realty Trust, Inc., headquartered in Atlanta, Georgia, is a
self-managed real estate investment trust engaged in the acquisition and
ownership of commercial real estate properties in the United States.
Public Storage, headquartered in Glendale, California, is a real estate
investment trust specializing in mini warehouses and self-service storage
facilities. The company also has properties used in other industrial and
commercial operations.
Simon Property Group, Inc., headquartered in Indianapolis, Indiana, is a self-
managed real estate investment trust. The company is engaged in the ownership,
development and management of regional malls and shopping centers.
STORE Capital Corporation, headquartered in Scottsdale, Arizona, is a real
estate investment trust. The company invests in single-tenant real estate such
as chain restaurants, supermarkets, health clubs, retail, education, service
and distribution facilities.
Weingarten Realty Investors, headquartered in Houston, Texas, operates as a
real estate investment trust engaging in the management, acquisition, and
development of shopping center and industrial real estate, primarily in the
Southwest.
Welltower Inc., headquartered in Toledo, Ohio, is a self-managed real estate
investment trust that invests in health care facilities, primarily nursing
homes and assisted living facilities.
Target Growth Strategy Stocks
Apple Inc., headquartered in Cupertino, California, is a technology company.
The company designs, manufactures and markets personal computers, related
personal computing and mobile communication devices through the company's
retail and online stores, resellers and third-party wholesalers.
Avantor, Inc., headquartered in Radnor, Pennsylvania, provides products to
customers in the healthcare, biopharma and applied materials industries. The
company offers lab products and supplies, formulated silicone materials,
analytical sample prep kits and clinical trial kits.
B2Gold Corp., headquartered in Vancouver, Canada, acquires, develops and
explores for gold, silver and copper deposits. The company has production
properties in several countries worldwide.
Barrick Gold Corporation, headquartered in Toronto, Canada, is engaged in the
production and sale of gold and copper, including related mining activities
such as exploration, development, mining and processing. The company has
operating mines and projects located in Canada and globally.
Bio-Rad Laboratories, Inc. (Class A), headquartered in Hercules, California,
is a manufacturer of health care products. The company produces and markets a
broad range of appliances and systems used to separate, identify and analyze
complex chemical and biological materials.
Cadence Design Systems, Inc., headquartered in San Jose, California, offers
electronic design automation (EDA) technologies and engineering services to
electronics companies worldwide. The company also develops system design
enablement (SDE) solutions for use in designing electronics systems,
integrated circuits and electronic devices.
Page 31
Cheniere Energy, Inc., headquartered in Houston, Texas, through its
subsidiaries, engages in the development, construction, ownership and
operation of onshore liquefied natural gas receiving terminals and natural gas
pipelines in the Gulf Coast of the United States.
CRISPR Therapeutics AG, headquartered in Zug, Switzerland, is a gene-editing
company. The company develops gene-based medicines for diseases like cancer
and sickle cell anemia.
D.R. Horton, Inc., headquartered in Arlington, Texas, is one of the most
geographically diversified homebuilders in the United States, with operating
divisions in more than 25 states. The company positions itself between large-
volume and local custom homebuilders and sells its single-family homes to the
entry-level and move-up market segments.
Darling Ingredients Inc., headquartered in Irving, Texas, is a consumer
products company. The company develops and produces sustainable natural
ingredients from edible and inedible bio-nutrients that are used in the
pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy and
fertilizer industries.
DexCom, Inc., headquartered in San Diego, California, is a medical device
company primarily focused on the design, development and commercialization of
continuous glucose monitoring systems. The systems are used by ambulatory
diabetic patients, health care providers and diabetes educators.
eBay Inc., headquartered in San Jose, California, operates an online person-to-
person trading community on the Internet, bringing together buyers and sellers
in an auction format to trade personal items such as antiques, coins,
collectibles, computers, memorabilia, stamps and toys.
Enphase Energy, Inc., headquartered in Fremont, California, provides
microinverter technology for the solar power industry. The company's
technology increases energy production, simplifies design and installation,
reduces fire safety risk and provides a platform for intelligent energy
management.
Facebook, Inc. (Class A), headquartered in Menlo Park, California, is an
information technology company. The company designs and operates various
social media products that enable people to connect and share data through
mobile devices and other platforms.
Horizon Therapeutics Plc, headquartered in Dublin, Ireland, is a
biopharmaceutical company. The company identifies, develops, acquires and
commercializes medicines that address unmet medical needs.
Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a metals
engineering and manufacturing company. The company's products are used
worldwide in aerospace, automotive, packaging, consumer electronics,
commercial transportation, building and construction, and industrial
applications.
Kinross Gold Corporation, headquartered in Toronto, Canada, is engaged in the
mining and processing of gold and silver ores. The company is also engaged in
the exploration for and acquisition of gold bearing properties in the Americas
and Russia.
Lowe's Companies, Inc., headquartered in Mooresville, North Carolina, a home
improvement retailer, operates stores which sell building commodities and
millwork; heating, cooling and water systems; home decorating and illumination
products; kitchens, bathrooms and laundries; yard, patio and garden products;
tools; home entertainment products; and special order products.
Netflix, Inc., headquartered in Los Gatos, California, is a leading Internet
television network available worldwide. The company provides its subscribers
with the ability to access and stream movies, television shows and other
filmed entertainment titles.
Ollie's Bargain Outlet Holdings, Inc., headquartered in Harrisburg,
Pennsylvania, is a brand name discount retailer. The company offers a broad
selection of merchandise, including food, home, clothing, pet and garden
products.
Pool Corporation, headquartered in Covington, Louisiana, is a swimming pool
supply company. The company distributes swimming pool supplies and related
products to swimming pool remodelers and builders, independent retail stores
and swimming pool repair and service companies.
PulteGroup, Inc., headquartered in Atlanta, Georgia, is a holding company
whose subsidiaries are engaged in homebuilding and financial services
businesses.
Quidel Corporation, headquartered in San Diego, California, develops,
manufactures and markets point-of-care diagnostic solutions for infectious
diseases and reproductive health primarily in the United States.
Page 32
S&P Global Inc., headquartered in New York, New York, is a financial
intelligence company. The company provides clients with information regarding
credit ratings, benchmarks, and analytics to capital and commodity markets
worldwide.
ServiceNow, Inc., headquartered in Santa Clara, California, is a provider of
cloud-based technology solutions that define, structure, manage and automate
services across the client's global enterprise. The company offers services on
a subscription basis and also offers implementation and training services.
The Sherwin-Williams Company, headquartered in Cleveland, Ohio, is a paint
manufacturer. The company manufactures, sells and distributes paint, coatings
and related products to professional, industrial, commercial and retail
customers worldwide.
Square, Inc. (Class A), headquartered in San Francisco, California, is an
information technology service and management company. The company develops
point-of-sale software as well as providing financial and marketing services.
Trex Company, Inc., headquartered in Winchester, Virginia, manufactures non-
wood alternative products for decks under the "Trex" brand name. The company's
products are manufactured from waste wood fibers and reclaimed polyethylene
and used primarily in residential and commercial decking.
United Rentals, Inc., headquartered in Stamford, Connecticut, operates as an
equipment rental company. The company serves the construction industry,
commercial concerns and residential customers in the United States and Canada.
Zoom Video Communications, Inc. (Class A), headquartered in San Jose,
California, is a telecommunications services company. The company provides
video-first communications platforms, including Zoom Meetings, Zoom Phone and
Zoom Chat, through mobile devices, desktops, laptops, telephones and
conference room systems.
Target Small-Cap Strategy Stocks
Addus HomeCare Corporation, headquartered in Frisco, Texas, is a provider of
comprehensive personal care services. Together with its subsidiaries, the
company provides a broad range of social and medical services in the home
primarily for the Medicare/Medicaid population.
AeroVironment, Inc., headquartered in Simi Valley, California, engages in the
design, development and production of unmanned aircraft systems and energy
technologies for industrial vehicle batteries. The company serves the U.S.
Department of Defense, as well as commercial, consumer and government customers.
Air Transport Services Group, Inc., headquartered in Wilmington, Ohio, through
its subsidiaries, provides aircraft, airline operations, and other related
services primarily to the shipping and transportation industries.
Alamo Group Inc., headquartered in Seguin, Texas, is engaged in the design and
manufacture of agricultural equipment and infrastructure maintenance equipment
for governmental and industrial use. The company's products include tractor-
mounted mowing and vegetation maintenance equipment, street sweepers, snow
removal equipment and replacement parts.
America's Car-Mart, Inc., headquartered in Bentonville, Arkansas, is a holding
company that operates automotive dealerships through its subsidiaries that
provides financing to consumers with limited or damaged credit histories.
American Woodmark Corporation, headquartered in Winchester, Virginia,
manufactures and distributes kitchen cabinets and vanities for the remodeling
and new home construction markets in the United States.
BioTelemetry, Inc., headquartered in Malvern, Pennsylvania, manufactures
cardiac monitoring devices and provides cardiac monitoring centralized cardiac
core laboratory services. The company operates in three segments: Patient
Services, Product, and Research Services.
CBIZ, Inc., headquartered in Cleveland, Ohio, provides accounting and tax,
employee benefits, payroll and human resource consulting, wealth management,
and property and casualty insurance services to companies in the United
States. The company also provides health care consulting, medical practice
management, internal audits and other services.
Century Communities, Inc., headquartered in Greenwood Village, Colorado, is
engaged in the development, design, construction, marketing and sale of single-
family attached and detached homes. The company focuses on metropolitan areas
throughout the United States.
Page 33
Core-Mark Holding Company, Inc., headquartered in Westlake, Texas, together
with its subsidiaries, is engaged in the distribution of packaged consumer
products to convenience retail stores in the United States and Canada. The
company services a variety of store formats.
e.l.f. Beauty, Inc., headquartered in Oakland, California, provides cosmetic
and skin care products.
Encore Capital Group, Inc., headquartered in San Diego, California, is an
international specialty finance company. The company provides debt recovery
solutions for consumers and property owners across a broad range of financial
assets.
The Greenbrier Companies, Inc., headquartered in Lake Oswego, Oregon, is a
supplier of transportation equipment and services to the railroad and related
industries. The company produces railcars, tank cars and marine vessels. The
company also offers management services for leasing and transportation
companies in North America.
Herc Holdings, Inc., headquartered in Bonita Springs Florida, through its
subsidiaries, engages in the car and equipment rental businesses worldwide.
HNI Corporation, headquartered in Muscatine, Iowa, is a provider of office
furniture and hearth products primarily through dealers, wholesalers and
retail superstores. The company operates throughout the United States and
Canada.
Ironwood Pharmaceuticals, Inc., headquartered in Boston, Massachusetts, is a
pharmaceutical company. The company develops, manufactures and commercializes
marketed drugs for gastrointestinal and cardiovascular diseases.
K12 Inc., headquartered in Herndon, Virginia, is a technology-based education
company that provides proprietary curriculum and educational services for
online delivery to students in kindergarten through 12th grade primarily in
the United States.
Kadant Inc., headquartered in Westford, Massachusetts, is a supplier of
equipment used in the global papermaking and paper recycling industries. The
company's fluid-handling products are used to optimize production in the
plastics, steel, rubber, food and textile industries.
La-Z-Boy Incorporated, headquartered in Monroe, Michigan, manufactures a wide
variety of furniture including residential, business and hospitality furniture.
Luminex Corporation, headquartered in Austin, Texas, has developed a
proprietary technology, LabMAP, that combines a microscopic fluid stream and
digital signal processing to perform high-speed biological tests at a low cost.
M/I Homes, Inc., headquartered in Columbus, Ohio, is engaged in the
construction and sale of single-family residential property. The company also
originates mortgage loans, primarily for purchasers of its homes.
MarineMax, Inc., headquartered in Clearwater, Florida, is a recreational boat
dealer. The company is engaged primarily in the retail sale, brokerage and
service of new and used boats, marine parts and accessories and offers slip
and storage accommodations throughout the United States.
McGrath RentCorp, headquartered in Livermore, California, is a business-to-
business rental company. The company rents and sells relocatable modular
buildings, electronic test equipment, containment tanks and classroom modular
buildings worldwide.
NeoPhotonics Corporation, headquartered in San Jose, California, develops,
manufactures and markets optoelectronic products that transmit, receive and
switch high speed digital optical signals for communications networks. The
company sells its products to the leading network equipment manufacturers.
NIC Inc., headquartered in Olathe, Kansas, provides eGovernment services that
enable governments to use the Internet to provide various services to
businesses and citizens in the United States. The technology helps governments
reduce internal costs and increase efficiencies.
OneSpan Inc., headquartered in Chicago, Illinois, is a technology company.
Through its subsidiaries, the company designs, develops, markets and supports
open standards-based hardware and software security systems that manage and
secure access to information assets.
Patrick Industries, Inc., headquartered in Elkhart, Indiana, manufactures and
distributes building products for the manufactured housing, recreational
vehicle, furniture manufacturing, marine, automotive aftermarket and other
industries. The company operates in the United States and Canada.
Perficient, Inc., headquartered in St. Louis, Missouri, is an information
technology and management consulting firm. The company's solutions include
business intelligence, analytics, commerce, content management and custom
applications.
Page 34
PetMed Express, Inc., headquartered in Delray Beach, Florida, is a pet
pharmacy company. Doing business as 1-800-PetMeds, the company delivers
prescription and non-prescription pet medications and other health products
for dogs, cats and horses in the United States.
Piper Sandler Companies, headquartered in Minneapolis, Minnesota, is a
financial services firm that provides investment banking and asset management
services to businesses, institutions and individuals. The company's services
include equity financings, trading and research services, and underwriting
debt issues.
Sleep Number Corporation, headquartered in Minneapolis, Minnesota, is a
developer, manufacturer and marketer of adjustable-firmness beds.
SpartanNash Company, headquartered in Grand Rapids, Michigan, engages in
distributing and retailing groceries in the United States. The company offers
dry groceries, produce, dairy products, meat, frozen food, seafood, floral
products, general merchandise, beverages, tobacco products, health and beauty
care products, delicatessen items, and bakery goods, as well as pharmacy
services.
Super Micro Computer, Inc., headquartered in San Jose, California, designs,
produces and markets high-efficiency server solutions based on modular and
open-standard architecture. The company offers servers, memory, disc drives,
network devices and server management software. The company markets its
products internationally.
Sykes Enterprises, Incorporated, headquartered in Tampa, Florida, is engaged
in providing customer management solutions and services to technology-enabled
companies primarily within the technology, communications and financial
services markets. The company operates in North America, Africa, Asia,
Australia, Europe, Latin America and the Middle East.
Turtle Beach Corporation, headquartered in San Diego, California, is an audio
technology company. The company designs and markets headsets for video game
consoles, computers and mobile devices.
Ultra Clean Holdings, Inc., headquartered in Hayward, California, designs,
engineers and manufactures gas and liquid delivery systems for the
semiconductor capital equipment industry. The company's gas delivery systems
enable the delivery of specialty gases used in the semiconductor manufacturing
process.
USANA Health Sciences, Inc., headquartered in Salt Lake City, Utah, develops
and manufactures nutritional, personal care and weight management products.
The company's products are distributed internationally through a network
marketing system.
Virtus Investment Partners, Inc., headquartered in Hartford, Connecticut,
provides investment management and related services to individuals and
institutions. The company's retail products include open-end mutual funds,
closed-end funds, variable insurance funds and separately managed accounts.
Zumiez Inc., headquartered in Lynnwood, Washington, is a mall-based specialty
retailer of action and sports-related apparel, footwear, accessories and
equipment. The company's target market is between the ages of 12 and 24.
Zynex, Inc., headquartered in Englewood, Colorado, manufactures and markets
electrotherapy products. The company sells electrotherapy medical devices used
for pain management and rehabilitation.
Value Line(R) Target 25 Strategy Stocks
Adobe Incorporated, headquartered in San Jose, California, is a software
company. The company develops, markets and supports software products and
technologies for creative professionals, marketers, application developers,
enterprises and consumers.
Advanced Micro Devices, Inc., headquartered in Santa Clara, California,
designs, develops, makes and sells a variety of industry-standard integrated
circuits which are used in product applications such as telecommunications
equipment, data and network communications equipment, consumer electronics,
personal computers and workstations.
Applied Materials, Inc., headquartered in Santa Clara, California, is an
information technology company. The company develops, manufactures, sells and
services semiconductor wafer fabrication equipment and related spare parts for
the worldwide semiconductor industry.
Best Buy Co., Inc., headquartered in Richfield, Minnesota, sells a wide
selection of name brand consumer electronics, home office equipment,
entertainment software and appliances through retail stores in numerous states.
Cadence Design Systems, Inc., headquartered in San Jose, California, offers
electronic design automation (EDA) technologies and engineering services to
electronics companies worldwide. The company also develops system design
enablement (SDE) solutions for use in designing electronics systems,
integrated circuits and electronic devices.
Page 35
The Clorox Company, headquartered in Oakland, California, manufactures and
sells household products, including the brand names "Armor All," "Black Flag,"
"Brita," "Clorox," "Combat," "Fresh Step," "Glad," "Hidden Valley," "Jonny
Cat," "Kingsford," "Liquid-Plumr," "Pine-Sol," "S.O.S.," "STP," "Scoop Away"
and "Tilex."
Domino's Pizza, Inc., headquartered in Ann Arbor, Michigan, operates a network
of company-owned and franchise Domino's Pizza stores throughout the United
States and internationally. The company also owns regional dough manufacturing
and distribution centers.
eBay Inc., headquartered in San Jose, California, operates an online person-to-
person trading community on the Internet, bringing together buyers and sellers
in an auction format to trade personal items such as antiques, coins,
collectibles, computers, memorabilia, stamps and toys.
Electronic Arts Inc., headquartered in Redwood City, California, creates,
markets, and distributes interactive entertainment software for a variety of
hardware platforms. The company also produces casual video games and sells
digital content.
Fastenal Company, headquartered in Winona, Minnesota, is principally engaged
in the sale of industrial supplies, including threaded fasteners and
construction supplies, through its retail store sites located in all 50
states, Canada, Mexico, Puerto Rico and Singapore.
IDEXX Laboratories, Inc., headquartered in Westbrook, Maine, develops,
manufactures and markets biotechnology-based detection systems primarily for
animal health applications. The company also develops and sells point-of-care
veterinary diagnostic products. The company markets its products worldwide.
Intuit Inc., headquartered in Mountain View, California, develops, sells and
supports personal finance, small business accounting, tax preparation and
other consumer software products, and related electronic services and supplies
that enable users to automate commonly performed financial tasks. The company
sells its products worldwide.
KLA Corporation, headquartered in Milpitas, California, designs and
manufactures yield management and process monitoring systems for the
semiconductor industry. The company's systems analyze process and product
quality in the manufacture of circuits to identify fabrication problems,
marketing its systems globally.
Lowe's Companies, Inc., headquartered in Mooresville, North Carolina, a home
improvement retailer, operates stores which sell building commodities and
millwork; heating, cooling and water systems; home decorating and illumination
products; kitchens, bathrooms and laundries; yard, patio and garden products;
tools; home entertainment products; and special order products.
Microsoft Corporation, headquartered in Redmond, Washington, is a technology
company. The company develops, manufactures, licenses and supports a range of
software products, including scalable operating systems, server applications,
worker productivity applications and software development tools.
Newmont Corporation, headquartered in Greenwood Village, Colorado, is a
holding company principally engaged in gold mining. The company has gold
mining operations in North and South America, the Middle East, Asia, Australia
and New Zealand.
NVIDIA Corporation, headquartered in Santa Clara, California, designs,
develops and markets graphics processors and related software for personal
computers and digital entertainment platforms.
Regeneron Pharmaceuticals, Inc., headquartered in Tarrytown, New York, is a
biopharmaceutical company. The company discovers, develops and commercializes
medicines for the treatment of serious medical conditions in the United States.
Rollins, Inc., headquartered in Atlanta, Georgia, provides pest and termite
control services to residential and commercial customers through the wholly-
owned Orkin Exterminating Company, Inc.
ServiceNow, Inc., headquartered in Santa Clara, California, is a provider of
cloud-based technology solutions that define, structure, manage and automate
services across the client's global enterprise. The company offers services on
a subscription basis and also offers implementation and training services.
Synopsys, Inc., headquartered in Mountain View, California, develops, markets
and supports electronic design automation products for designers of integrated
circuits and electronic systems. The company also provides training, support
and consulting services for its customers.
Page 36
Target Corporation, headquartered in Minneapolis, Minnesota, is a general
merchandise retailer. The company specializes in discount stores featuring
moderately-priced merchandise and groceries. The company also offers a fully
integrated online business.
Texas Instruments Incorporated, headquartered in Dallas, Texas, provides
semiconductor products and designs and supplies digital signal processing and
analog technologies. The company has worldwide manufacturing and sales
operations.
Tractor Supply Company, headquartered in Brentwood, Tennessee, is an operator
of retail farm and ranch stores in the United States. The company offers
animal products, lawn and garden products, hardware and tools, and
work/recreational clothing, among other products.
West Pharmaceutical Services, Inc., headquartered in Exton, Pennsylvania,
applies value-added services to the process of bringing healthcare products
and new drug therapies to global markets. The company's technologies include
the design and manufacture of packaging components, research and development
of drug delivery systems, and contract laboratory services and other services.
We have obtained the foregoing company descriptions from third-party sources
we deem reliable.
Page 37
Undertaking
Subject to the terms and conditions of Section 15(d) of the Securities Exchange Act of 1934, the undersigned registrant hereby undertakes to file with the Securities and Exchange Commission such supplementary and periodic information, documents, and reports as may be prescribed by any rule or regulation of the Commission heretofore or hereafter duly adopted pursuant to authority conferred in that section.
CONTENTS OF REGISTRATION STATEMENT
| A. | Bonding Arrangements of Depositor: |
First Trust Portfolios L.P. is covered by a Brokers' Fidelity Bond, in the total amount of $2,000,000, the insurer being National Union Fire Insurance Company of Pittsburgh.
| B. | This Registration Statement on Form S-6 comprises the following papers and documents: |
The facing sheet
The Prospectus
The signatures
Exhibits
S-1
SIGNATURES
The Registrant, FT 8950, hereby identifies The First Trust Special Situations Trust, Series 4; The First Trust Special Situations Trust, Series 18; The First Trust Special Situations Trust, Series 69; The First Trust Special Situations Trust, Series 108; The First Trust Special Situations Trust, Series 119; The First Trust Special Situations Trust, Series 190; FT 286; The First Trust Combined Series 272; FT 412; FT 438; FT 556; FT 754; FT 1102; FT 1179; FT 2935; FT 3320; FT 3367; FT 3370; FT 3397; FT 3398; FT 3400; FT 3451; FT 3480; FT 3529; FT 3530; FT 3568; FT 3569; FT 3570; FT 3572; FT 3615; FT 3647; FT 3650; FT 3689; FT 3690; FT 3729; FT 3780; FT 3940; FT 4020; FT 4037; FT 4143; FT 4260; FT 4746; FT 4789; FT 5039; FT 5415; FT 7033; FT 7256 and FT 7935 for purposes of the representations required by Rule 487 and represents the following:
(1) that the portfolio securities deposited in the series with respect to which this Registration Statement is being filed do not differ materially in type or quality from those deposited in such previous series;
(2) that, except to the extent necessary to identify the specific portfolio securities deposited in, and to provide essential financial information for, the series with respect to the securities of which this Registration Statement is being filed, this Registration Statement does not contain disclosures that differ in any material respect from those contained in the registration statements for such previous series as to which the effective date was determined by the Commission or the staff; and
(3) that it has complied with Rule 460 under the Securities Act of 1933.
Pursuant to the requirements of the Securities Act of 1933, the Registrant, FT 8950, has duly caused this Amendment to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Wheaton and State of Illinois on October 9, 2020.
FT 8950
| By: | First Trust Portfolios L.P. Depositor |
| By: | /s/ Elizabeth H. Bull Senior Vice President |
S-2
Pursuant to the requirements of the Securities Act of 1933, this Amendment to the Registration Statement has been signed below by the following person in the capacity and on the date indicated:
| Name | Title* | Date |
| James A. Bowen | Director of The Charger Corporation, the General Partner of First Trust Portfolios L.P., and Chief Executive Officer of First Trust Portfolios L.P. | ) ) ) )By: /s/ Elizabeth H. Bull ) Attorney-in-Fact** ) October 9, 2020 |
| James M. Dykas | Chief Financial Officer of First Trust Portfolios L.P. | ) ) |
| Christina Knierim | Controller of First Trust Portfolios L.P. | ) ) |
| * | The title of the person named herein represents his or her capacity in and relationship to First Trust Portfolios L.P., the Depositor. |
| ** | Executed copies of the related powers of attorney were filed with the Securities and Exchange Commission in connection with the Amendment No. 1 to Form S-6 of FT 8880 (File No. 333-240230) and the same is hereby incorporated herein by this reference. |
S-3
CONSENT OF COUNSEL
The consent of counsel to the use of its name in the Prospectus included in this Registration Statement will be contained in its opinion to be filed as Exhibits 3.1, 3.2 and 3.3 of the Registration Statement.
CONSENT OF FIRST TRUST ADVISORS L.P.
The consent of First Trust Advisors L.P. to the use of its name in the Prospectus included in the Registration Statement will be filed as Exhibit 4.1 to the Registration Statement.
Consent of Independent Registered Public Accounting Firm
The consent of Deloitte & Touche LLP to the use of its name in the Prospectus included in the Registration Statement will be filed as Exhibit 4.2 to the Registration Statement.
S-4
EXHIBIT INDEX
| 1.1 | Standard Terms and Conditions of Trust for FT 4484 and certain subsequent Series, effective November 6, 2013 among First Trust Portfolios L.P., as Depositor, The Bank of New York Mellon, as Trustee, First Trust Advisors L.P., as Evaluator, First Trust Advisors L.P., as Portfolio Supervisor and FTP Services LLC, as FTPS Unit Servicing Agent (incorporated by reference to Amendment No. 1 to Form S-6 [File No. 333-191558] filed on behalf of FT 4484). |
| 1.1.1 | Trust Agreement for FT 8950 and certain subsequent Series, effective October 9, 2020 among First Trust Portfolios L.P., as Depositor, The Bank of New York Mellon, as Trustee, First Trust Advisors L.P., as Evaluator, and First Trust Advisors L.P., as Portfolio Supervisor. |
| 1.2 | Certificate of Limited Partnership of Nike Securities, L.P., predecessor of First Trust Portfolios L.P. (incorporated by reference to Amendment No. 1 to Form S-6 [File No. 333-230481] filed on behalf of FT 8001). |
| 1.3 | Amended and Restated Limited Partnership Agreement of Nike Securities, L.P., predecessor of First Trust Portfolios L.P. (incorporated by reference to Amendment No. 1 to Form |
S-6 [File No. 333-230481] filed on behalf of FT 8001).
| 1.4 | Articles of Incorporation of Nike Securities Corporation, predecessor to The Charger Corporation, the general partner of First Trust Portfolios L.P., Depositor (incorporated by reference to Amendment No. 1 to Form S-6 [File No. 333-230481] filed on behalf of FT 8001). |
| 1.5 | By-Laws of The Charger Corporation, the general partner of First Trust Portfolios L.P., Depositor (incorporated by reference to Amendment No. 2 to Form S-6 [File No. 333-169625] filed on behalf of FT 2669). |
| 1.6 | Underwriter Agreement (incorporated by reference to Amendment No. 1 to Form S-6 [File No. 33-42755] filed on behalf of The First Trust Special Situations Trust, Series 19). |
| 2.2 | Code of Ethics (incorporated by reference to Amendment No. 1 to Form S-6 [File No. 333-224320] filed on behalf of FT 7359). |
S-5
| 3.1 | Opinion of counsel as to legality of securities being registered. |
| 3.2 | Opinion of counsel as to Federal income tax status of securities being registered. |
| 3.3 | Opinion of counsel as to New York (state and city) tax status of securities being registered. |
| 4.1 | Consent of First Trust Advisors L.P. |
| 4.2 | Consent of Independent Registered Public Accounting Firm. |
| 6.1 | List of Principal Officers of the Depositor (incorporated by reference to Amendment No. 1 to Form S-6 [File No. 333-236093] filed on behalf of FT 8556). |
| 7.1 | Powers of Attorney executed by the Officers listed on page S-3 of this Registration Statement (incorporated by reference to Amendment No. 1 to Form S-6 [File No. 333-240230] filed on behalf of FT 8880). |
S-6