1. Home
  2. UIT
  3. California Municipal Portfolio of Funds Series 50

California Municipal Portfolio of Funds Series 50

Trust Resources
Prospectus

secondary

Investment Objective

The California Municipal Portfolio of CEFs, Series 50 ("Trust") seeks to provide current income and the potential for capital appreciation.
 

Principal Investment Strategy

Selection Criteria

Risks and Other Considerations

Portfolio Information

Daily Data
Offer Price N/A
Wrap Fee Price N/A
Liquidation Price $9.1735
Remaining Deferred Sales Charge $0.2250

CUSIPs
Cash 40178C386
Reinvest 40178C394
Fee/Cash 40178C402
Fee/Reinvest 40178C410

 

Deposit Information
Inception Date 9/9/2024
Non-Reoffered Date 11/12/2024
Mandatory Maturity Date 9/9/2026
Ticker Symbol CECAZX
Trust Structure Grantor
Inception Unit Price $10.0000
Inception Liquidation Price $9.7750
Deferred Sales Charge Dates Jan 2025
Feb 2025
Mar 2025
Term 2 Years
Number of Holdings 16

Historical Annual Dividend Distribution*
Per Unit $0.3885
Rate -
Rate Fee Based -

* The Historical Annual Dividend Distribution (HADD) is as of the day prior to trust deposit and subject to change. There is no guarantee the issuers of the securities included in the Trust will declare dividends or distributions in the future. The HADD of the securities included in the Trust is for illustrative purposes only and is not indicative of the Trust’s distribution rate. The HADD is the weighted average of the trailing twelve-month distributions paid by the securities included in the portfolio and is reduced to account for the effects of fees and expenses, which will be incurred when investing in the Trust. The HADD will vary due to certain factors that may include, but are not limited to, a change in the dividends paid by issuers, a change in Trust expenses or the sale or maturity of securities in the portfolio.

Portfolio Holdings Analysis

All data is subject to change daily. Data may differ from the prospectus due to different data sources or market changes. Please refer to prospectus for additional information about the trust including the portfolio section criteria. Source: FactSet Research Systems Inc. unless otherwise noted. The total percentages may not be equal to 100% due to rounding. N/A indicates that certain securities have not been identified and/or classified by the data provider. A unit is a combination of securities or types of securities traded together.

Security Type
Closed-End Fund 68.95%
Exchange Traded Fund 31.05%
Total 100.00%

Leverage Exposure
Weighted Average Leverage Ratio** 24.23%

** The Total value of the fund’s outstanding leverage presented as a percentage of total assets.

Example: Percentage of Total Assets represented by leverage.(e.g., Total Assets = $200M; Net Assets = $160M; Leverage = $40M. Leverage = 20%, calculated by dividing $40M by $200M.)

Sector Category

CEF Holdings Analysis (68.95% Of The Portfolio)

Premium/Discount Of CEFs Held In Portfolio *
Trust Weighted Average -9.71%
Closed-End Fund ("CEF") Universe Average -3.08%

Historical Premiums/Discounts Of CEFs Held In Portfolio
High (10/22/24) -6.40%
Low (12/23/24) -9.71%
Average -7.64%

Premiums/Discounts Of CEFs Held In Portfolio *

(since inception)

* Closed-end funds may trade at a premium or discount to their net asset value (“NAV”). The Premium/Discount shown is for the underlying securities held by the closed-end funds in the UIT. This is the weighted average of all the CEFs in portfolio.

Asset Class

CEF Sector Category

CEF Sector Category
Municipal-CA 54.25%
Municipal 14.69%
Total 68.95%

Premium/Discount and Holdings Analysis data is provided by Morningstar Traded Fund Center. Data is subject to change on a nightly basis. The data is for the underlying securities held by the closed-end funds in the UIT. The total percentages may not be equal to 100% due to rounding. N/A indicates that certain securities have not been identified and/or classified by the data provider.

ETF Holdings Analysis (31.05% Of The Portfolio)

Asset Class

ETF Sector Category

ETF Sector Category
Muni California Long 31.05%
Total 31.05%

Holdings Analysis data is provided by Morningstar Traded Fund Center. Data is subject to change on a nightly basis. The data is for the underlying securities held by the exchange traded funds in the UIT. The total percentages may not be equal to 100% due to rounding.

The Closed-End Fund (“CEF”) Universe is comprised of all CEFs currently listed on U.S. exchanges.

© 2024 Morningstar, Inc. All Rights Reserved. The information contained herein: (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.

Past performance is no guarantee of future results. Investment returns and principal value will fluctuate with changes in market conditions. Investors' units, when redeemed, may be worth more or less than their original cost.

Principal Investment Strategy
Under normal circumstances, the trust will invest at least 80% of the value of its assets in closed-end investment companies (“Closed-End Funds”) that invest substantially all of their assets in California municipal bonds. The trust contains common shares of Closed-End Funds, the majority of which contain portfolios that invest substantially all of their assets in California municipal bonds, which are rated investment-grade by at least one nationally recognized statistical rating organization.
 

Selection Criteria
The sponsor has selected for the portfolio Closed-End Funds believed to have the best potential to achieve the trust’s investment objective. The trust seeks to provide monthly income that is exempt from federal and California state income taxes by investing in Closed-End Funds that invest in California municipal bonds. However, the trust may invest up to 20% of the value of its assets in Closed- End Funds that invest substantially all of their assets in municipal bonds that are exempt from regular federal income tax but not from California state income tax. Municipal bonds generally offer investors the potential for stable tax-free income. However, a portion of the income may be subject to the federal alternative minimum tax on individuals as well as federal, state and local taxes. For tax years beginning after December 31, 2022, exempt-interest dividends may affect the corporate alternative minimum tax for certain corporations.

When selecting Closed-End Funds for inclusion in this portfolio the sponsor looks at numerous factors. These factors include, but are not limited to:
  • Investment Objective. The sponsor favors funds that have a clear investment objective in line with the trust’s objective and, based upon a review of publicly available information, appear to be maintaining it.
  • Premium/Discount. The sponsor favors funds that are trading at a discount relative to their peers and relative to their long-term average.
  • Consistent Dividend. The sponsor favors funds that have a history of paying a consistent and competitive dividend.
  • Performance. The sponsor favors funds that have a history of strong relative performance (based on market price and net asset value) when compared to their peers and an applicable benchmark.
The sponsor has selected for the portfolio ETFs believed to have the best potential to achieve the trust’s investment objective. The trust seeks to provide monthly income that is exempt from federal and California state income taxes by investing in ETFs that invest in California municipal bonds. Municipal bonds generally offer investors the potential for stable tax-free income. However, a portion of the income may be subject to the federal alternative minimum tax on individuals as well as federal, state and local taxes. For tax years beginning after December 31, 2022, exempt-interest dividends may affect the corporate alternative minimum tax for certain corporations.

The sponsor will seek to select ETFs for inclusion in the trust portfolio that invests substantially all of their assets in California municipal bonds. When selecting the ETFs the sponsor looks at numerous factors. These factors include, but are not limited to:
  • Liquidity. The sponsor selects ETFs that demonstrate adequate liquidity for the trust’s needs.
  • Maturity. The sponsor favors ETFs that demonstrate similar maturity characteristics to the underlying index it follows.
  • Investment Objective. The sponsor favors ETFs that have a clear investment objective in line with the trust’s objective and, based upon a review of publicly available information, appear to be maintaining it.
As of the Inception Date, the ETFs comprised approximately 30% of the trust’s portfolio.

 

Risks and Other Considerations
As with all investments, you may lose some or all of your investment in the trust. No assurance can be given that the trust’s investment objective will be achieved. The trust also might not perform as well as you expect.
This can happen for reasons such as these:
  • Securities prices can be volatile. The value of your investment may fall over time. Market value fluctuates in response to various factors. These can include stock market movements, purchases or sales of securities by the trust, government policies, litigation, and changes in interest rates, inflation, the financial condition of the securities’ issuer or even perceptions of the issuer. Changes in legal, political, regulatory, tax and economic conditions may cause fluctuations in markets and securities prices, which could negatively impact the value of the trust. Additionally, events such as war, terrorism, natural and environmental disasters and the spread of infectious illnesses or other public health emergencies may adversely affect the economy, various markets and issuers. For example, the ongoing conflicts in the Ukraine and Gaza, the outbreak of the coronavirus disease, and federal regulatory restrictions on U.S. corporate issuer investments in China and Russia have all recently affected issuers and markets. The complete economic impact of any such future event may be difficult or impossible to predict. Units of the trust are not deposits of any bank and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
  • The trust includes Closed-End Funds. Closed-End Funds are actively managed investment companies that invest in various types of securities. Closed-End Funds issue common shares that are traded on a securities exchange. Closed-End Funds are subject to various risks, including management’s ability to meet the Closed-End Fund’s investment objective and to manage the Closed- End Fund’s portfolio during periods of market turmoil and as investors’ perceptions regarding Closed-End Funds or their underlying investments change. Closed-End Funds are not redeemable at the option of the shareholder and they may trade in the market at a discount to their net asset value. Closed-End Funds may also employ the use of leverage which increases risk and volatility.
  • The trust invests in shares of ETFs. ETFs are investment pools that hold other securities. The ETFs in the trust may be passively-managed index funds that seek to replicate the performance or composition of a recognized securities index. ETFs are subject to various risks, including management’s ability to meet the fund’s investment objective. Shares of ETFs may trade at a premium or discount from their net asset value in the secondary market. If the trust has to sell an ETF share when the share is trading at a discount, the trust will receive a price that is less than the ETF’s net asset value. This risk is separate and distinct from the risk that the net asset value of the ETF shares may decrease. The amount of such discount from net asset value is subject to change from time to time in response to various factors. The underlying ETF has management and operating expenses. Consequently, you will bear not only your share of your trust’s expenses, but also the expenses of the underlying ETFs. By investing in ETFs, the trust incurs greater expenses than you would incur if you invested directly in the ETFs.
  • The trust is subject to an ETF’s index correlation risk. To the extent that an underlying ETF is an index tracking ETF, index correlation risk is the risk that the performance of an ETF will vary from the actual performance of the fund’s target index, known as “tracking error.” This can happen due to fund expenses, transaction costs, market impact, corporate actions (such as mergers and spin-offs) and timing variances.
  • The Closed-End Funds and ETFs are subject to annual fees and expenses, including a management fee. Unitholders of the trust will bear these fees in addition to the fees and expenses of the trust. See “Fees and Expenses” for additional information.
  • The value of the fixed-income securities in the Closed-End Funds and ETFs will generally fall if interest rates, in general, rise. Typically, fixed-income securities with longer periods before maturity are more sensitive to interest rate changes. The trust may be subject to greater risk of rising interest rates than would normally be the case due to the current economic environment and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.
  • The value of the fixed-income securities in the Closed-End Funds and ETFs will generally fall if interest rates, in general, rise. Typically, fixed-income securities with longer periods before maturity are more sensitive to interest rate changes. The trust may be subject to greater risk of rising interest rates than would normally be the case due to the current economic environment and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.
  • A Closed-End Fund, ETF or an issuer of securities held by a Closed- End Fund or ETF may be unwilling or unable to make principal payments and/or to declare distributions in the future, may call a security before its stated maturity, or may reduce the level of distributions declared. Issuers may suspend dividends during the life of the trust. This may result in a reduction in the value of your units.
  • The financial condition of a Closed-End Fund, ETF or an issuer of securities held by a Closed-End Fund or ETF may worsen, resulting in a reduction in the value of your units. This may occur at any point in time, including during the primary offering period.
  • Certain Closed-End Funds or ETFs held by the trust may invest in securities that are rated as investment-grade by only one rating agency. As a result, such split-rated securities may have more speculative characteristics and are subject to a greater risk of default than securities rated as investment-grade by more than one rating agency.
  • All of the Closed-End Funds and ETFs held by the trust invest in municipal bonds, and the majority of these Closed-End Funds and ETFs invest substantially all of their assets in California municipal bonds. Municipal bonds are long-term fixed rate debt obligations that decline in value with increases in interest rates, an issuer’s worsening financial condition, a drop in bond ratings or when there is a decrease in the federal income tax rate. Typically, bonds with longer periods before maturity are more sensitive to interest rate changes. Additionally, legislative changes, the strength of state and local economies, business development and the condition of the securities markets may negatively affect the value the municipal bonds. Municipal bonds may also be called or redeemed prior to their stated maturity, an event which is more likely to occur when interest rates fall. In such an occurrence, a Closed-End Fund or ETF in which the trust invests may not be able to reinvest the money it receives in other bonds that have as high a yield or as long a maturity. Municipal bonds generally generate income exempt from federal income taxation, but may be subject to the alternative minimum tax on individuals. For tax years beginning after December 31, 2022, interest on the bonds may affect the corporate alternative minimum tax for certain corporations. In addition, some or all of the income generated by a Closed-End Fund or ETF may not be exempt from regular federal or California state income taxes and as a result, the related income paid by the trust may also be subject to regular federal and state income taxes. Capital gains, if any, may be subject to tax. Because the Closed-End Funds and ETFs are concentrated in bonds of issuers located in California, there may be more risk than if the bonds were issued by issuers located in several states.
  • The trust is susceptible California state specific risk as the majority of the Closed-End Funds and ETFs in which the trust invests invest substantially all of their assets in California municipal bonds. Because the trust includes Closed-End Funds and ETFs containing bonds of issuers located in California, there may be more risk than if the bonds were issued by issuers located in several states. The financial condition of California is affected by various national and local, economic, social and environmental policies and conditions and may have an effect on the value of the units in the trust. Additionally, Constitutional and statutory limitations imposed on the State and its local governments concerning taxes, bond indebtedness and other matters may constrain the revenue-generating capacity of the State and its local governments and, therefore, the ability of the issuers of the bonds to satisfy their obligations.
  • Economic conditions may lead to limited liquidity and greater volatility. The markets for fixed- income securities, such as those held by certain Closed-End Funds and ETFs, may experience periods of illiquidity and volatility. General market uncertainty and consequent repricing risk have led to market imbalances of sellers and buyers, which in turn have resulted in significant valuation uncertainties in a variety of fixed- income securities. These conditions resulted, and in many cases continue to result in, greater volatility, less liquidity, widening credit spreads and a lack of price transparency, with many debt securities remaining illiquid and of uncertain value. These market conditions may make valuation of some of the securities held by a Closed-End Fund or ETF uncertain and/or result in sudden and significant valuation increases or declines in its holdings.
  • Share prices or distributions on the securities in the trust may decline during the life of the trust. There is no guarantee that share prices of the securities in the trust will not decline and that the issuers of the securities will declare distributions in the future and, if declared, whether they will remain at current levels or increase over time.
  • The trust may be susceptible to potential risks through breaches in cybersecurity. A breach in cybersecurity refers to both intentional and unintentional events that may cause the trust to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the sponsor of the trust to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. In addition, cybersecurity breaches of the trust’s third-party service providers, or issuers in which the trust invests, can also subject the trust to many of the same risks associated with direct cybersecurity breaches.
  • The trust is subject to risks arising from various operational factors and their service providers. Operational factors include, but not limited to, human error, processing and communication errors, errors of the trust’s service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. Additionally, the trust may be subject to the risk that a service provider may not be willing or able to perform their duties as required or contemplated by their agreements with the trust. Although the trust seeks to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks.
  • Inflation may lead to a decrease in the value of assets or income from investments.
  • The sponsor does not actively manage the portfolio. The trust will generally hold, and may, when creating additional units, continue to buy, the same securities even though a security’s outlook, market value or yield may have changed.

Please see the Trust prospectus for more complete risk information.

Unit Investment Trusts are fixed, not actively managed and should be considered as part of a long-term strategy. Investors should consider their ability to invest in successive portfolios, if available, at the applicable sales charge. UITs are subject to annual fund operating expenses in addition to the sales charge. Investors should consult an attorney or tax advisor regarding tax consequences associated with an investment from one series to the next, if available, and with the purchase or sale of units. Guggenheim Funds Distributors, LLC does not offer tax advice.

Subscribe to Our Perspectives
 
PRIVACY POLICY
BUSINESS CONTINUITY
LEGAL INFORMATION
Your Privacy Rights

Read a prospectus and summary prospectus (if available) carefully before investing. It contains the investment objective, risks charges, expenses and the other information, which should be considered carefully before investing. To obtain a prospectus and summary prospectus (if available) click here or call 800.820.0888.

Investing involves risk, including the possible loss of principal.

Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Wealth Solutions, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, Guggenheim Partners Japan Limited, and GS GAMMA Advisors, LLC. Securities offered through Guggenheim Funds Distributors, LLC.

© 2024 Guggenheim Investments. All Rights Reserved.

Research our firm with FINRA Broker Check.

• Not FDIC Insured • No Bank Guarantee • May Lose Value

This website is directed to and intended for use by citizens or residents of the United States of America only. The material provided on this website is not intended as a recommendation or as investment advice of any kind, including in connection with rollovers, transfers, and distributions. Such material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. All content has been provided for informational or educational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation. Investing involves risk, including the possible loss of principal.