strategic foundations of growth portfolio (sfg) · the strategic foundations of growth portfolio...

EQUITY - THEMATIC PORTFOLIOS

Series 2017-2, ADT 1794

Investment Objective & Strategy

Strategic Foundations of Growth Portfolio (SFG)

Fee-Based CUSIP (Cash/Reinvest) Ticker Symbol

Ticketing Information

00776M764 / 772 SFGAJX

Unit price at inception (per unit) Initial redemption price (per unit) Initial date of deposit Portfolio ending date Distribution frequency Est. net annual dist per unit (1st year)*

Est. net annual dist per unit (2nd year)*

Essential Information+

$9.6550 $9.6550

5/19/2017 5/7/2019

Semi-Annual, if any $0.0936 $0.0924

+As of 5/18/2017 and may vary thereafter. *The estimate is generally based on the estimate of dividends the trust will receive by annualizing the most recent dividend declared. The per unit estimate will vary with changes in fees and expenses, actual dividends received and with the sales of securities. The distributions are expected to decrease in the subsequent year as a result of organizational costs, creation and development fee, and deferred sales charges. There is no guarantee that the issuers of the securities included in the trust will declare distributions in the future or that, if declared, will remain at current levels or increase over time.

Morningstar Equity Style Box TM

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

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The Strategic Foundations of Growth Portfolio (SFG) is a unit investment trust (UIT) that seeks to

provide capital appreciation by investing in common stocks of companies involved in certain

fundamental aspects of economic growth of both developed and underdeveloped countries. Stocks

are selected by Eugene E. Peroni, Jr. of Peroni Portfolio Advisors, Inc., the Portfolio Consultant,

through the application of his proprietary method of technical analysis, the Peroni Method®.

The SFG portfolio may offer investors an opportunity to participate in the global demand in several

key areas of industrial growth. This diversified portfolio seeks to include companies involved in

agriculture, energy, health care, precious metals, potable water, the development and maintenance

of infrastructure systems, and other related areas that could benefit from expanding economies in

the 21st century.

++All amounts are as of 5/18/2017 and may vary thereafter. The Creation & Development Fee is fixed at $0.05 per unit and is paid at the end of the initial offering period (anticipated to be approximately three months). The Organization Costs are fixed at $0.049 per unit and are paid at the end of the initial offering period or after six months, if earlier. The above table is for illustrative purposes only to illustrate how estimated trust fees and expenses translate on an annualized basis. The above does not reflect the amount or how all fees and expenses will actually be paid. You should consult the prospectus for a full description of applicable sales charges and expenses of the trust, including those applicable to purchasers eligible for the fee-based account discount. The one-time charges shown (the Creation & Development Fee and Organization Costs) are paid on a one-time basis as described and are not actually amortized over the life of the trust. The amount shown for “Amortized One-Time Charges” are calculated by taking the one-time dollar amounts and dividing them by the anticipated life of the based on the trust’s inception date and mandatory termination date. The “Estimated Average Amortized Annual Expenses” is taken by adding the “Amortized One-Time Charges” amount and “Estimated Annual Operating Expense” amounts.

Fee-Based Accounts Sales Charge and Expenses (Based on initial Fee-Based Account unit price of $9.655)++

As % of Fee-Based

Public Offering Price

Amount per unit (based on

initial unit price)

Creation & Development Fee 0.52% $0.050

Organizational Costs + 0.51% $0.049

Total One-Time Expense 1.03% $0.099

Divided by Term of Trust equals Amortized One-Time Charges

÷ 2 years ÷ 2 years

Amortized One-Time Charges 0.51% $0.050

Estimated Annual Operating Expense

+ 0.34% + $0.033

Estimated Average Amortized Annual Expenses

0.85% $0.083

FOR USE ONLY WITH INVESTOR ACCOUNTS ELIGIBLE FOR THE “FEE-BASED ACCOUNT” SALES CHARGE DESCRIBED ON PAGE 4

Fee-Based Account UIT Fact Card

Strategic Foundations of Growth Portfolio

Intelligent Investments. Independent Ideas.

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Series 2017-2, ADT 1794 Fee-Based Account UIT Fact Card

FOR USE ONLY WITH INVESTOR ACCOUNTS ELIGIBLE FOR THE “FEE-BASED ACCOUNT” SALES CHARGE DESCRIBED ON PAGE 4

Portfolio Holdings (as of date of deposit)

*As of 5/18/17 and may vary thereafter.

Ticker Symbol

Issue Name

Market Value Per Share*

Consumer Discretionary (12.11%)

AMZN Amazon.com, Inc. $958.49

HD The Home Depot, Inc. 155.70

LEA Lear 141.92

NFLX Netflix, Inc. 155.70

TSLA Tesla, Inc. 313.06

MTN Vail Resorts, Inc. 198.75

Financials (2.05%)

SPGI S&P Global, Inc. 137.45

Health Care (5.64%)

COO The Cooper Companies, Inc. 210.39

ISRG Intuitive Surgical, Inc. 859.98

MTD Mettler-Toledo International, Inc. 561.50

Industrials (46.25%)

AOS A. O. Smith 53.02

ARNC Arconic, Inc. 26.92

BA The Boeing 177.40

CP Canadian Pacific Railway Limited 152.57

CAT Caterpillar, Inc. 100.22

CR Crane 76.76

CMI Cummins, Inc. 151.84

DE Deere & 112.67

ETN Eaton Corporation PLC 76.07

FDX FedEx 188.73

GD General Dynamics 192.64

HON Honeywell International, Inc. 130.42

ITW Illinois Tool Works, Inc. 135.35

Ticker Symbol

Issue Name

Market Value Per Share*

Industrials (continued)

IR Ingersoll-Rand PLC $88.17

LII Lennox International, Inc. 171.70

LMT Lockheed Martin 267.32

NOC Northrop Grumman 246.88

PH Parker-Hannifin 152.29

RTN Raytheon 157.89

ROP Roper Technologies, Inc. 219.35

TDY Teledyne Technologies, Inc. 126.05

TTC The Toro 65.56

UTX United Technologies 119.37

Information Technology (23.85%)

GOOG 930.24

AAPL 152.54

AVGO 237.66

GLW 28.77

GPN 88.77

INTU 125.15

KLAC 100.85

MSFT 67.71

MKSI 79.30

V 91.71

ZBRA 98.11

ZG 41.71

Materials (10.10%)

ALB 110.00

ASH 64.12

DOW 60.58

MLM 229.28

SHW 331.22



of 4 FOR USE ONLY WITH INVESTOR ACCOUNTS ELIGIBLE FOR THE “FEE-BASED ACCOUNT”

SALES CHARGE DESCRIBED ON PAGE 4


Why Now?

The Peroni Method® is a proprietary form of technical analysis used by Eugene E. Peroni, Jr. of Peroni Portfolio Advisors, Inc. which uses a bottom-up approach in

selecting stocks for certain AAM sector unit investment trusts. The foundation of this methodology is the basic understanding that every stock has its own

“fingerprint” in the market place. Mr. Peroni tracks hundreds of stocks on a daily basis, identifying leading stocks and sectors in the market by analyzing price

movements, money flow trends, and relative strength characteristics. His studies include the examination of a stock’s price architecture using hand-drawn point and

figure charts which have been part of the methodology for over half a century.

This hands-on research approach may be an attractive investment alternative to traditional fundamental analysis in that it considers a stock’s individual technical

merits along with economic, monetary and geopolitical factors. The Peroni Method® may uncover emerging trends that could correspond to future stock

performance. It has endured volatile markets while providing investors with uncommon insights and unique investment opportunities.

The Peroni Method®

Source: Morningstar

Source: Global Industrial Classification Standard (GICS)

% of Portfolio

United States 92.07%

Ireland 4.04%

Canada 1.96%

Singapore 1.93%

Source: Bloomberg

Holdings Style Summary* Sector Breakdown*

% of Portfolio

Industrials 46.25%

Information Technology 23.85%

Consumer Discretionary 12.11%

Materials 10.10%

Health Care 5.64%

Financials 2.05%

% of Portfolio

Large-Cap Growth 25.79%

Large-Cap Value 10.08%

Large-Cap Blend 28.13%

Mid-Cap Growth 23.88%

Mid-Cap Value 2.02%

Mid-Cap Blend 8.06%

Small-Cap Growth 2.04%

Country of Organization*

A current unifying investment theme is the allure of emerging markets – expanding economies, increasing populations and swelling wealth. At the same time, developed countries continue to face the staggering issue of their own crumbling infrastructures and the need to improve and expand industrial production and natural resource supplies to meet the world’s growing demand. The International Monetary Fund has tweaked its predictions for global economic growth in a positive direction. The organization now predicts that the world economy will grow at a pace of 3.5% in 2017, or 0.1% more than it predicted previously. Moreover, that is up from 3.1% last year. The IMF also predicts growth of 3.6% in 2018. The acceleration will be broad based across advanced, emerging and low-income economies, building on gains seen in both manufacturing and trade.1 According to a report from the McKinsey Global Institute in 2016, the world invests some $2.5 trillion a year in the transportation, power, water, and telecom systems on which businesses and populations depend. Yet this amount continues to fall short of the world’s ever expanding needs, which results in lower economic growth and deprives citizens of essential services. From 2016 through 2030, the world needs to invest about 3.8% of GDP, or an average of $3.3 trillion a year, in economic infrastructure just to support expected rates of growth.2 At the New York Society of Security Analysts’ Fourth Annual Global Infrastructure Conference in November 2016, analysts, portfolio managers and topic experts explored the investment and economic opportunities and challenges involved in the vital areas of infrastructure spending in the global economy. It was estimated that $24 trillion was projected to be spent over the next 15 years on the transportation sector alone (roads rails, sea and airports) – one of the key areas of growth and investment in the global infrastructure space.3

*As of 5/18/2017 and may vary thereafter. Breakdowns are based on the sources shown and may differ from any category definitions used in selecting the trust portfolio.

1 MHN News, Economy Watch: IMF Ups Forecast for 2017 Global Growth, April 2017 2 McKinsey & Co., Bridging Global Infrastructure Gaps, June 2016 3 New York Society of Security Analysts, Fourth Annual Global Infrastructure Conference, November 4, 2016



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Risks and Considerations: Unit values will fluctuate with the portfolio of underlying securities and may be worth more or less than the original purchase price at the time of redemption. There is no guarantee that the objective of the portfolio will be achieved. Additionally, the trust may terminate earlier than the specific termination date as stated in the prospectus. Consult your tax advisor for possible tax consequences associated with this investment. An investment in this unmanaged unit investment trust should be made with an understanding of the risks associated therewith that include, but are not limited to: Common Stock: An investment in common stocks should be made with an understanding of the various risks of owning common stock, such as an economic recession and the possible deterioration of either the financial condition of the issuers of the equity securities or the general condition of the stock market. Dividend Payment Risk: Dividends are not guaranteed and a company’s future abilities to pay dividends may be limited. Moreover, it should be clear that a company currently paying dividends may cease paying dividends at any time. Foreign Securities: Securities of foreign issuers present risks beyond those of U.S. issuers. These risks may include market and political factors related to the issuer's foreign market, international trade conditions, less regulation, smaller or less liquid markets, increased volatility, differing accounting practices and changes in the value of foreign securities. Industrial Sector Concentration: The trust is considered to be concentrated in securities issued by industrials companies. Negative developments impacting companies in this sector will affect the value of your investment more than would be the case in a more diversified investment. Long-Term Strategy: The UIT matures in 2 years and, as such, investors should consider their ability to reinvest any proceeds in a subsequent UIT, if available, with a like or differing strategy, at the applicable sales charge. Peroni MethodTM: The Peroni MethodTM may not identify stocks that will satisfy the trust’s investment objective. Small and Mid-Sized Companies: The trust is considered to be concentrated in securities issued by small and mid-size companies. These stocks are often more volatile and have lower trading volumes than stocks of larger companies. Small and mid-size companies may have limited products or financial resources, management inexperience and less publicly available information. The Morningstar Equity Style Box™: This table provides a graphical representation of the investment style of a trust based on holdings as of the date of deposit which may vary thereafter. The Morningstar Equity Style Box™ placement is based on the Morningstar market capitalization classification (determined relative to other stocks in the same geographic area) of the stocks in the trust's portfolio (vertical axis), and by comparing the growth and value characteristics of the stocks in the trust's portfolio with growth and value factors developed by Morningstar (horizontal axis). Value, blend and growth are types of investment styles. Growth investing generally seeks stocks that offer the potential for greater-than-average earnings growth, and may entail greater risk than value or blend investing. Value investing generally seeks stocks that may be sound investments but are temporarily out of favor in the marketplace, and may entail less risk than growth investing. A blended investment combines the two styles. ©2017 Morningstar, Inc. All Rights Reserved. The information contained herein relating to the Morningstar Equity Style Box™: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. For Use Only with Eligible Fee-Based Account Investors: During the trust’s initial offering period, investors who purchase units through registered investment advisers, certified financial planners or registered broker-dealers who in each case either charge investor accounts periodic fees for brokerage services, financial planning, investment advisory or asset management services, or provide such services in connection with an investment account for which a comprehensive “wrap fee” charge is imposed may be eligible to purchase units of the trust in fee-based accounts that are not subject to the transactional sales fee but will be subject to the creation and development fee that is collected by the sponsor (i.e. the “Fee-Based Account” sales charge). You should consult your financial advisor to determine whether you can benefit from these accounts and whether your unit purchases are eligible for this discount. To purchase units in these accounts, your financial advisor must purchase units designated with one of the Fee Account CUSIP numbers, if available. The amounts shown are different from what would be applicable for units purchased in other accounts (i.e. commission-based accounts) not eligible for this discount. See your prospectus and consult your financial advisor for more information about eligibility and applicability of the fee-based account discount. This communication may only be used with investors that are eligible for this discount. Securities are available through your financial professional. Not FDIC Insured. Not Bank Guaranteed. May Lose Value. For informational purposes only and not a recommendation to purchase or sell any security. 18925 Base Camp Road Monument, CO 80132 www.aamlive.com ©2017 Advisors Asset Management Advisors Asset Management, Inc. (AAM) is a SEC registered investment advisor and member FINRA/SIPC. CRN: 2017-0215-5820 R

Unit Investment Trusts (UITs) are sold only by prospectus. You should consider the trust’s investment objectives, risks, charges and expenses carefully before investing. Contact your financial professional or visit Advisors Asset Management online at www.aamlive.com/uit to request a prospectus, which contains this and other information about the trust. Read it carefully before you invest.

Gene Peroni - In The Media

Gene regularly appears on CNBC, CBS MarketWatch, Fox Business News, PBS Nightly Business Report

and Bloomberg Radio. He has been quoted in publications such as The Wall Street Journal, The New York

Times, U.S. News and World Report, Investors Business Daily and Forbes. In addition, Gene produces a

daily stock market commentary available in a concise, easily accessible podcast.

Follow AAM Live:

FOR USE ONLY WITH INVESTOR ACCOUNTS ELIGIBLE FOR THE “FEE-BASED ACCOUNT” SALES CHARGE


strategic foundations of growth portfolio (sfg) · the strategic foundations of growth portfolio...

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