1. Home
  2. UIT
  3. Guggenheim Balanced Income Builder Portfolio Series 1

Guggenheim Balanced Income Builder Portfolio Series 1

matured


Investment Objective

The Guggenheim Balanced Income Builder Portfolio, Series 1 ("Trust") seeks current income with the potential for capital appreciation.

Principal Investment Strategy

Selection Criteria

Risks and Other Considerations

Portfolio Information

Deposit Information

Inception Date 1/12/2012
Non-Reoffered Date 7/20/2012
Mandatory Maturity Date 2/26/2014
Ticker Symbol CGBIAX
Trust Structure Grantor
Inception Unit Price $10.0000
Maturity Price (as of 2/26/14) $11.1413

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.

This information does not constitute an offer to sell or a solicitation of any offer to buy: nor shall there be any sale of these securities in any state where the offer, solicitation, or sale is not permitted.


Principal Investment Strategy

The Trust seeks to provide a high level of income with the potential for capital appreciation by investing in dividend-paying stocks of U.S. companies along with shares of exchange-traded funds (“ETFs”) that invest in fixed-income securities. 

The Sponsor, with the assistance of Guggenheim Partners Investment Management, LLC ("GPIM"), an affiliate of Guggenheim Partners, LLC, has selected the securities to be included in the Trust’s portfolio. The common stocks in the Trust are selected according to the quantitativelyselected US High Dividend Strategy described below. Certain of the common stocks included in the Trust portfolio are issued by real estate investment trusts (“REITs”). Please see “Principal Risks” and “Investment Risks” for additional information concerning the risks associated with investing in REITs. 

The Sponsor and GPIM believe that companies that distribute significant dividends on a consistent basis generally demonstrate strong financial strength and positive performance relative to their peers. The common stocks selected according to the US High Dividend Strategy will constitute approximately 50% of the Trust portfolio. 

Shares of ETFs that invest substantially all of their assets in fixed-income securities will make up the remaining 50% of the Trust portfolio. The fixed-income ETFs included in the portfolio invest in a wide range of debt securities rated investment grade through below-investment grade. High-yield, belowinvestment grade securities or “junk” bonds are considered to be speculative and are subject to greater market and credit risks than investment-grade securities. Please see “Principal Risks” and “Investment Risks” for additional information concerning the risks associated with investing in high-yield securities or “junk” bonds. 

The fixed-income ETFs included in the portfolio will invest in debt securities with shortterm, medium-term and long-term maturities. Typically fixed-income securities with longer periods before maturity are more sensitive to interest rate changes. See “Principal Risks” and “Investment Risks” for additional information concerning the risks associated with investing in fixed-income securities of short, medium and long-term durations. 

Finally, the fixed-income ETFs included in the portfolio will invest in debt securities issued by foreign companies, including companies located in emerging markets. See “Principal Risks” and “Investment Risks” for additional information concerning the risks associated with investing in securities of foreign issuers, including issuers located in emerging markets. 

See “Investment Policies” in Part B of the prospectus for more information.

Selection Criteria

US High Dividend Strategy 

Approximately 50% of the Trust portfolio will constitute the 25 common stocks selected according to the US High Dividend Strategy. These stocks were selected six business days prior to the initial date of deposit (the "Inception Date") using the security selection rules described below. 

Security Selection Rules: 

In constructing the common stock component of the Trust's portfolio, 25 securities will be selected based on the following fundamentally based quantitative criteria:

  • Begin with all securities in the S&P 1500 Composite Index.
  • Each security in the index is scored based within its respective sector on the three financial factors listed below using a scale of 1 through 10 (1 representing the highest ranked 10% in the sector, and 10 representing the lowest ranked 10% in the sector):
    • Return on assets
    • Earnings before interest, taxes, depreciation and amortization ("EBITDA") / Enterprise value
    • Sales per share growth Exclude securities included in the S&P 1000 Index.
  • Exclude securities which do not pay a regular dividend.
  • Exclude securities with an average daily price volume less than $600,000 over the prior 20 trading days.
  • Exclude securities with market capitalizations less than $200 million.
  • Exclude securities that have a pending cash-only merger and acquisition or other corporate action events which will lead to the delisting of the security from the qualifying exchange listed above.
  • Exclude securities with the lowest 25% combined financial scores on the above three financial factors.
  • Rank the remaining stocks by dividend yield from highest to lowest.
  • Select an approximately equally weighted portfolio of the 25 stocks with the highest dividend yield and a maximum sector weighting of 20% as of the selection date.

Please note that due to the fluctuating nature of security prices, the weighting of an individual security or sector in the Trust portfolio may change after the portfolio selection date.

Fixed-Income Exchange-Traded Funds

Approximately 50% of the Trust portfolio will constitute ETFs that invest in fixed-income securities. The Sponsor, with the assistance of GPIM, has selected fixed-income ETFs believed to have the best potential for current income. When selecting the ETFs for the Trust, the Sponsor considers a number of factors, including but not limited to, the size, liquidity and daily trading volume, the current dividend yield, the strategy and investment objective, the fixed-income securities held by the ETF, the expense ratio and the overlap of the underlying fixed-income securities held by the ETFs.

The S&P Composite 1500 Index combines three leading indices - S&P 500, S&P MidCap 400 and S&P SmallCap 600 - to form an investable benchmark of the U.S. equity market. Covering approximately 85% of the U.S. market capitalization, S&P Composite 1500 offers investors an index with the familiar characteristics of the S&P 500 but with broader market exposure. 

The S&P 1000 Index combines two leading indices, the S&P MidCap 400 and the S&P SmallCap 600, to form an investable benchmark for the mid-small cap universe of the U.S. equity market. The S&P 1000 Index measures the performance of widely available and highly liquid stocks. This makes the S&P 1000 the appropriate midsmall cap index for investors seeking to replicate the performance of the U.S. equity market or serve as a benchmark for a universe of tradable stocks. Indexes are unmanaged and it is not possible to invest directly in an index.

Risks and Other Considerations

As with all investments, you may lose some or all of your investment in the Trust. No assurance can be given that the Trust’s investment objective will be achieved. The Trust also might not perform as well as you expect. This can happen for reasons such as these: 

  • Securities prices can be volatile. The value of your investment may fall over time. Market value fluctuates in response to various factors. These can include stock market movements, purchases or sales of securities by the Trust, government policies, litigation, and changes in interest rates, inflation, the financial condition of the securities’ issuer or even perceptions of the issuer. Units of the Trust are not deposits of any bank and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. 
  • Due to the current state of the economy, the value of the securities held by the Trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers. Starting in December 2007, economic activity declined across all sectors of the economy, and most countries experienced increased unemployment. The economic crisis affected the global economy with European and Asian markets also suffering historic losses. Standard & Poor’s Rating Services recently lowered its long-term sovereign credit rating on the United States to “AA+” from “AAA,” which could lead to increased interest rates and volatility. Extraordinary steps have been taken by the governments of several leading countries to combat the economic crisis; however, the impact of these measures is not yet fully known and cannot be predicted. 
  • The Trust invests in shares of ETFs. ETFs are investment pools that hold other securities. The ETFs in the Trust are usually 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 discount from their net asset value in the secondary market. 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. You will bear not only your share of your trust’s expenses, but also the expenses of the underlying funds. 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 index correlation risk. 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 value of the fixed-income securities 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. 
  • An ETF or an issuer of securities held by an ETF may be unwilling or unable to make principal payments and/or to declare dividends in the future, may call a security before its stated maturity, or may reduce the level of dividends declared. This may result in a reduction in the value of your units. 
  • The financial condition of an ETF or an issuer of securities held by an 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 ETFs held by the Trust invest in bonds that are rated below investment-grade and are considered to be “junk” securities. Below investment-grade obligations are considered to be speculative and are subject to greater market and credit risks, and accordingly, the risk of non-payment or default is higher than with investmentgrade securities. In addition, such securities may be more sensitive to interest rate changes and more likely to receive early returns of principal. 
  • Certain ETFs held by the Trust may invest in bonds 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. 
  • Certain ETFs held by the Trust invest in foreign securities. Investment in foreign securities presents additional risk. Foreign risk is the risk that foreign securities will be more volatile than U.S. securities due to such factors as adverse economic, currency, political, social or regulatory developments in a country, including government seizure of assets, excessive taxation, limitations on the use or transfer of assets, the lack of liquidity or regulatory controls with respect to certain industries or differing legal and/or accounting standards. 
  • Certain ETFs held by the Trust invest in securities issued by companies headquartered or incorporated in countries considered to be emerging markets. Emerging markets are generally defined as countries with low per capita income in the initial stages of their industrialization cycles. Risks of investing in developing or emerging countries include the possibility of investment and trading limitations, liquidity concerns, delays and disruptions in settlement transactions, political uncertainties and dependence on international trade and development assistance. Companies headquartered in emerging market countries may be exposed to greater volatility and market risk. 
  • Share prices or dividend rates on the securities in the Trust may decline during the life of the Trust. There is no guarantee that the issuers of the securities will declare dividends in the future and, if declared, whether they will remain at current levels or increase over time. 
  • The Trust includes REITs. REITs may concentrate their investments in specific geographic areas or in specific property types, such as, hotels, shopping malls, residential complexes and office buildings. The value of the REITs and other real estate securities and the ability of such securities to distribute income may be adversely affected by several factors, including: rising interest rates; changes in the global 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; 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; declines in the value of real estate; the downturn in the sub-prime mortgage lending market and the real estate market in the United States; and other factors beyond the control of the issuer of the security. 
  • The Trust invests in securities issued by mid-capitalization companies. These securities customarily involve more investment risk than securities of larger capitalization companies. Mid-capitalization companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments. 
  • Inflation may lead to a decrease in the value of assets or income from investments. 
  • The Sponsor does not actively manage the portfolio. The Trust will generally hold, and may, when creating additional units, continue to buy, the same securities even though a security’s outlook, market value or yield may have changed. 


See “Investment Risks” in Part A of the prospectus and “Risk Factors” in Part B of the prospectus for additional information.

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.




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 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.