Content Leaders Portfolio, Series 31
The Content Leaders Portfolio is a unit investment trust that invests in U.S. traded common stocks of
companies that Pence Capital Management, LLC believes are dominant in the creation and delivery of media
content including television producers, filmmakers, content libraries, broadcast channels, and delivery
platforms. The portfolio includes U.S. and foreign companies with small-, mid- or large-capitalizations.
Key Considerations
Increasing Access | Widespread access to high-speed digital networks have revolutionized the
consumption of content, making it available anytime and almost anywhere.
Rising Demand | Wider access and advancing technology have changed human behavior.
Untethered from traditional sources, consumers spend significantly more time demanding and
viewing content.
Dominant Content Producers | Only a small number of producers provide and control a
significant portion of the market. High barriers to entry help maintain their dominance.
Dominant Delivery Systems | An even smaller number of eco-systems control the delivery of
content to the consumer.
About Pence Capital Management, LLC
Pence Capital Management, LLC is a registered investment advisory firm based in Newport Beach,
California. The firm uses its proprietary research to identify and deliver actionable investment
insights. The firm is led by Colonel (ret.) E. Dryden Pence III, a Harvard-educated economist with
decades of experience in the financial industry. His formal training and knowledge in economics
combined with his career of more than 26 years in Army Intelligence, Special Operations
and Psychological Warfare, gives the firm a unique understanding of human behavior and its
effects on the economy and the markets. The Content Leaders Portfolio is based on the firm’s
expertise in portfolio construction.
Portfolio Objective
This unit investment trust seeks above-average capital appreciation; however, there is
no assurance the objective will be met.
| Not FDIC Insured • Not Bank Guaranteed • May Lose Value |
You should consider the portfolio's investment objectives, risks, and charges and expenses carefully before investing. Contact your financial professional or call First Trust Portfolios, L.P. at 1.800.621.1675 to request a prospectus, which contains this and other information about the portfolio. Read it carefully before you invest.
Risk Considerations
An investment in this unmanaged unit investment trust should be made
with an understanding of the risks involved with owning common stocks, 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.
You should be aware that the portfolio is concentrated in stocks in the communications services sector which involves additional risks, including limited diversification. The companies engaged in the communication services
sector are subject to rapidly changing technology, rapid product obsolescence, loss of patent protection, cyclical market patterns, governmental regulation, evolving industry standards and frequent new product introductions.
Certain companies may be particularly susceptible to cybersecurity threats, which could have an adverse effect on their business.
Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers.
An investment in a portfolio containing small-cap and mid-cap companies is subject to
additional risks, as the share prices of small-cap companies and certain mid-cap companies are
often more volatile than those of larger companies due to several factors, including limited
trading volumes, products, financial resources, management inexperience and less publicly
available information.
Large capitalization companies may grow at a slower rate than the overall market.
As the use of Internet technology has become more prevalent in the course of business, the trust
has become more susceptible to potential operational risks through breaches in cybersecurity.
Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East have caused and could continue to cause significant market disruptions and volatility
within the markets in Russia, Europe, the Middle East and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain investments as well as performance.
The ongoing effects of the COVID-19 global pandemic, or the potential impacts of any future public health crisis, may cause significant volatility and uncertainty in global financial markets. While vaccines have been developed,
there is no guarantee that vaccines will be effective against future variants of the disease.
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.
This UIT is a buy and hold strategy and investors should consider their ability to hold the trust until maturity. There may be tax consequences unless units are purchased in an IRA or other qualified plan.