Registration No. 333-231064
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 8030
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
May 20, 2019 at 2:00 p.m. pursuant to Rule 487.
________________________________
UBS Yield at a Reasonable Price: Equity Advisory Group 2019 Series
FT 8030
FT 8030 is a series of a unit investment trust, the FT Series. FT 8030
consists of a single portfolio known as UBS Yield at a Reasonable Price:
Equity Advisory Group 2019 Series (the "Trust"). The Trust invests in a
diversified portfolio of common stocks ("Securities"). The Trust seeks
dividend income and capital appreciation.
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 May 20, 2019
Page 1
Table of Contents
Summary of Essential Information 3
Fee Table 4
Report of Independent Registered Public Accounting Firm 5
Statement of Net Assets 6
Schedule of Investments 7
The FT Series 9
Portfolio 10
Risk Factors 11
Public Offering 13
Distribution of Units 16
The Sponsor's Profits 17
The Secondary Market 17
How We Purchase Units 17
Expenses and Charges 17
Tax Status 18
Retirement Plans 20
Rights of Unit Holders 21
Income and Capital Distributions 21
Redeeming Your Units 22
Investing in a New Trust 23
Removing Securities from the Trust 23
Amending or Terminating the Indenture 24
Information on the Sponsor, Trustee and Evaluator 25
Other Information 26
Page 2
Summary of Essential Information (Unaudited)
UBS Yield at a Reasonable Price: Equity Advisory Group 2019 Series
FT 8030
At the Opening of Business on the Initial Date of Deposit-May 20, 2019
Sponsor: First Trust Portfolios L.P.
Trustee: The Bank of New York Mellon
Evaluator: First Trust Advisors L.P.
Initial Number of Units (1) 15,718
Fractional Undivided Interest in the Trust per Unit (1) 1/15,718
Public Offering Price:
Public Offering Price per Unit (2) $ 10.000
Less Initial Sales Charge per Unit (3) (.000)
__________
Aggregate Offering Price Evaluation of Securities per Unit (4) 10.000
Less Deferred Sales Charge per Unit (3) (.135)
__________
Redemption Price per Unit (5) 9.865
Less Creation and Development Fee per Unit (3) (5) (.055)
Less Organization Costs per Unit (5) (.032)
__________
Net Asset Value per Unit $ 9.778
==========
Cash CUSIP Number 30309C 249
Reinvestment CUSIP Number 30309C 256
Fee Account Cash CUSIP Number 30309C 264
Fee Account Reinvestment CUSIP Number 30309C 272
Pricing Line Product Code 124254
Ticker Symbol FCRWGX
First Settlement Date May 22, 2019
Mandatory Termination Date (6) August 21, 2020
Income Distribution Record Date Tenth day of each month, commencing June 10, 2019.
Income Distribution Date (7) Twenty-fifth day of each month, commencing June 25, 2019.
_____________
(1) As of the Evaluation Time on the Initial Date of Deposit, we may adjust
the number of Units of the 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 amount 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 1.90% of the Public Offering Price
per Unit (equivalent to 1.90% 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 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 valued at
its closing ask price on such date. See "Public Offering-The Value of the
Securities." 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 estimated organization costs per Unit will be deducted from the assets
of the Trust at the end of the initial offering period. If Units are redeemed
prior to the close of the initial offering period, estimated organization
costs will not be deducted from the redemption proceeds. See "Redeeming Your
Units." Commencing at the end of the initial offering period, the creation and
development fee will accrue on a daily basis through the Mandatory Termination
Date. If you redeem your Units prior to the Mandatory Termination Date, you
will not be assessed any unaccrued creation and development fee.
(6) See "Amending or Terminating the Indenture."
(7) The Trustee will distribute money from the Capital Account monthly on the
twenty-fifth day of each month to Unit holders of record on the tenth day of
each month 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. See "Income and Capital Distributions."
Page 3
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 the Trust. See "Public Offering"
and "Expenses and Charges." Although the Trust has a term of approximately 15
months and is a unit investment trust rather than a mutual fund, this
information allows you to compare fees.
Amount
per Unit
________
Unit Holder Sales Fees (as a percentage of public offering price)
Maximum Sales Charge
Initial sales charge 0.00%(a) $.000
Deferred sales charge 1.35%(b) $.135
Creation and development fee 0.55%(c) $.055
_____ _____
Maximum sales charge (including creation and development fee) 1.90% $.190
===== =====
Organization Costs (as a percentage of public offering price)
Estimated organization costs .320%(d) $.0320
===== ======
Estimated Annual Trust Operating Expenses(e)
(as a percentage of average net assets)
Portfolio supervision, bookkeeping, administrative and evaluation fees .079% $.0080
Trustee's fee and other operating expenses .136%(f) $.0138
_____ ______
Total .215% $.0218
===== ======
Example
This example is intended to help you compare the cost of investing in the
Trust with the cost of investing in other investment products. The example
assumes that you invest $10,000 in the 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
______ _______ _______ ________
$244 $750 $1,037 $2,240
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 1.90% 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 August 20, 2019.
(c) The creation and development fee compensates the Sponsor for creating and
developing the Trust. The creation and development fee is a charge of $.055
per Unit accrued on a daily basis from the end of the initial offering period,
which is expected to be approximately three months from the Initial Date of
Deposit through the Mandatory Termination Date. If the price you pay for your
Units exceeds $10 per Unit, the creation and development fee will be less than
0.55%; if the price you pay for your Units is less than $10 per Unit, the
creation and development fee will exceed 0.55%. If you redeem your Units prior
to the Mandatory Termination Date, you will not be assessed any unaccrued
creation and development fee.
(d) Estimated organization costs will be deducted from the assets of the 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 for the Trust do not include brokerage costs and
other portfolio transaction fees for the Trust. In certain circumstances the
Trust may incur additional expenses not set forth above. See "Expenses and
Charges."
Page 4
Report of Independent
Registered Public Accounting Firm
To the Unit Holders and the Sponsor, First Trust Portfolios L.P., of FT 8030
Opinion on the Statement of Net Assets
We have audited the accompanying statement of net assets of FT 8030,
comprising UBS Yield at a Reasonable Price: Equity Advisory Group 2019 Series
(the "Trust"), one of the series constituting the FT Series, including the
schedule of investments, as of the opening of business on May 20, 2019
(Initial Date of Deposit), and the related notes. In our opinion, the
statement of net assets presents fairly, in all material respects, the
financial position of the Trust as of the opening of business on May 20, 2019
(Initial Date of Deposit), in conformity with accounting principles generally
accepted in the United States of America.
Basis for Opinion
This statement of net assets is the responsibility of the Trust's Sponsor. Our
responsibility is to express an opinion on this statement of net assets based
on our audit. 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 Trust 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 audit 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 statement of net assets is free of material
misstatement, whether due to error or fraud. The Trust is not required to
have, nor were we engaged to perform, an audit of its internal control over
financial reporting. As part of our audit 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 Trust's internal
control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material
misstatement of the statement 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 statement of net assets. Our audit also included evaluating
the accounting principles used and significant estimates made by the Trust's
Sponsor, as well as evaluating the overall presentation of the statement of
net assets. Our procedures included confirmation of the irrevocable letter of
credit held by The Bank of New York Mellon, the Trustee, and deposited in the
Trust for the purchase of securities, as shown in the statement of net assets,
as of the opening of business on May 20, 2019, by correspondence with the
Trustee. We believe that our audit provides a reasonable basis for our opinion.
/s/ DELOITTE & TOUCHE LLP
Chicago, Illinois
May 20, 2019
We have served as the auditor of one or more investment companies sponsored by
First Trust Portfolios L.P. since 2001.
Page 5
Statement of Net Assets
UBS Yield at a Reasonable Price: Equity Advisory Group 2019 Series
FT 8030
At the Opening of Business on the Initial Date of Deposit-May 20, 2019
NET ASSETS
Investment in Securities represented by purchase contracts (1) (2) $157,178
Less liability for reimbursement to Sponsor for organization costs (3) (503)
Less liability for deferred sales charge (4) (2,122)
Less liability for creation and development fee (5) (864)
________
Net assets $153,689
========
Units outstanding 15,718
Net asset value per Unit (6) $ 9.778
ANALYSIS OF NET ASSETS
Cost to investors (7) $157,178
Less maximum sales charge (7) (2,986)
Less estimated reimbursement to Sponsor for organization costs (3) (503)
________
Net assets $153,689
========
______________
NOTES TO STATEMENT OF NET ASSETS
The 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 Trust intends to comply in its initial fiscal year
and thereafter with provisions of the Internal Revenue Code applicable to
regulated investment companies and as such, will not be subject to federal
income taxes on otherwise taxable income (including net realized capital
gains) distributed to Unit holders.
(1) The Trust invests in a diversified portfolio of common stocks. Aggregate
cost of the Securities listed under "Schedule of Investments" is based on
their aggregate underlying value. The Trust has a Mandatory Termination Date
of August 21, 2020.
(2) An irrevocable letter of credit issued by The Bank of New York Mellon, of
which approximately $200,000 has been allocated to the Trust, 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
Trust. These costs have been estimated at $.0320 per Unit. 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 the 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 the Trust.
(4) Represents the amount of mandatory deferred sales charge distributions of
$.135 per Unit, payable to the Sponsor in three equal monthly installments
beginning on August 20, 2019 and on the twentieth day of each month thereafter
(or if such date is not a business day, on the preceding business day) through
October 18, 2019. If Unit holders redeem Units before October 18, 2019, they
will have to pay the remaining amount of the deferred sales charge applicable
to such Units when they redeem them.
(5) The creation and development fee ($.055 per Unit) is accrued on a daily
basis from the end of the initial offering period through the Mandatory
Termination Date. If you redeem your Units prior to the Mandatory Termination
Date, you will not be assessed any unaccrued creation and development fee.
(6) Net asset value per Unit is calculated by dividing the 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 the 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 1.90% of the Public Offering
Price (equivalent to 1.90% 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 6
Schedule of Investments
UBS Yield at a Reasonable Price: Equity Advisory Group 2019 Series
FT 8030
At the Opening of Business on the Initial Date of Deposit-May 20, 2019
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 (6.67%):
T AT&T Inc. 3.34% 165 $ 31.80 $ 5,247
VZ Verizon Communications Inc. 3.33% 90 58.09 5,228
Consumer Discretionary (20.00%):
CCL Carnival Corporation + 3.35% 98 53.68 5,261
F Ford Motor Company 3.33% 509 10.29 5,238
GPS The Gap, Inc. 3.33% 235 22.28 5,236
KSS Kohl's Corporation 3.32% 82 63.60 5,215
M Macy's, Inc. 3.34% 241 21.77 5,246
TPR Tapestry Inc. 3.33% 170 30.78 5,233
Consumer Staples (9.97%):
MO Altria Group, Inc. 3.33% 100 52.35 5,235
GIS General Mills, Inc. 3.33% 100 52.40 5,240
PM Philip Morris International Inc. 3.31% 60 86.81 5,209
Energy (3.34%):
MPC Marathon Petroleum Corporation 3.34% 101 51.95 5,247
Financials (20.00%):
FHB First Hawaiian, Inc. 3.33% 195 26.86 5,238
HBAN Huntington Bancshares Incorporated 3.33% 396 13.22 5,235
KEY KeyCorp 3.34% 313 16.75 5,243
PBCT People's United Financial, Inc. 3.34% 324 16.19 5,245
PRU Prudential Financial, Inc. 3.33% 53 98.81 5,237
RF Regions Financial Corporation 3.33% 364 14.40 5,242
Health Care (16.66%):
ABBV AbbVie Inc. 3.34% 66 79.46 5,244
CAH Cardinal Health, Inc. 3.32% 116 45.03 5,223
CVS CVS Health Corporation 3.33% 99 52.88 5,235
GILD Gilead Sciences, Inc. 3.33% 79 66.36 5,242
PDCO Patterson Companies, Inc. 3.34% 238 22.05 5,248
Industrials (3.35%):
UPS United Parcel Service, Inc. (Class B) 3.35% 53 99.40 5,268
Information Technology (3.32%):
AVGO Broadcom Inc. 3.32% 18 289.89 5,218
Page 7
Schedule of Investments (cont'd.)
UBS Yield at a Reasonable Price: Equity Advisory Group 2019 Series
FT 8030
At the Opening of Business on the Initial Date of Deposit-May 20, 2019
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 (3.34%):
SCCO Southern Copper Corporation + 3.34% 151 $ 34.72 $ 5,243
Real Estate (13.35%):
BRX Brixmor Property Group Inc. (4) 3.33% 289 18.12 5,237
MAC The Macerich Company (4) 3.35% 126 41.74 5,259
SPG Simon Property Group, Inc. (4) 3.33% 30 174.46 5,234
TCO Taubman Centers, Inc. (4) 3.34% 105 50.02 5,252
_______ ________
Total Investments 100.00% $157,178
======= ========
___________
(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
May 20, 2019. Such purchase contracts are expected to settle within two
business days.
(2) The cost of the Securities to the Trust represents the aggregate underlying
value with respect to the Securities acquired (generally determined by the
closing sale prices of the listed Securities and the ask prices of over-
the-counter traded Securities at the Evaluation Time on the business day prior
to the Initial Date of Deposit). The cost of Securities to the 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," the 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 profit (which is the
difference between the cost of the Securities to the Sponsor and the cost of the
Securities to the Trust) are $156,613 and $565, respectively.
(3) Common stocks of companies headquartered or incorporated outside the
United States comprise approximately 6.69% of the investments of the Trust
(consisting of Panama, 3.35% and Peru, 3.34%).
(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 approximately 13.35% of the investments of the Trust.
+ 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.
Page 8
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 8030, consists of a
single portfolio known as UBS Yield at a Reasonable Price: Equity Advisory
Group 2019 Series.
The 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 Trust.
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 Trust.
On the Initial Date of Deposit, we deposited a portfolio of common stocks with
the Trustee and, in turn, the Trustee delivered documents to us representing
our ownership of the Trust in the form of units ("Units").
After the Initial Date of Deposit, we may deposit additional Securities in the
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"), 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 the 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 the 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 Trust pays the
associated brokerage fees. To reduce this dilution, the Trust 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 Trust pays 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 the Trust to buy
Securities. If we or an affiliate of ours act as agent to the 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
Trust, which may include broker/dealers who sell Units of the Trust. We do not
consider sales of Units of the Trust or any other products sponsored by First
Trust as a factor in selecting such broker/dealers.
We cannot guarantee that the 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 the Trust," to maintain the sound
investment character of the Trust, and the proceeds received by the Trust will
be 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 Trust. As the holder of the Securities, the Trustee will vote the
Securities and, except as described in "Removing Securities from the 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 the 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 Income Distribution Date. Any Replacement Security the
Trust acquires will be identical to those from the failed contract.
Page 9
Portfolio
Objective.
The Trust seeks dividend income and capital appreciation. Under normal
circumstances, the Trust will invest at least 80% of its assets in equity
securities. The Trust is concentrated in stocks of consumer products companies.
The Trust contains a selection of equities the UBS Wealth Management USA
Capital Markets Equity Advisory Group (the "Group") believes have the
potential to provide dividend income at a "reasonable" price; that is, stocks
the Group believes are not overpriced (as defined below) at the time of their
selection. The Group is not part of UBS's research departments, UBS Chief
Investment Office Global Wealth Management ("CIO GWM") or UBS Global Research
("Global Research"). Dividends have historically been one of the few constants
in the world of investing, contributing nearly half of the stock market's
total return. According to Ibbotson Associates, from 1926 through 2018,
dividends have provided approximately 42% of the 9.99% average annual total
return on the S&P 500 (R) Index. As a means of valuing a stock, analysts
typically use a stock's P/E (price-to-earnings) ratio to determine market
value relative to a stock's value based on its financial performance.
Generally, the higher the P/E ratio, the more expensive a stock's market value
is. The P/E ratios of the stocks selected for this portfolio fall within
parameters set by the Group as shown below.
Portfolio Selection Process.
A combination of fundamental and quantitative analysis is used in seeking
equities for this portfolio.
Identify the Universe. Stocks paying a dividend with a yield greater than the
average dividend yield of the stocks comprising the Russell 3000 (R) Index.
- Minimum rating of neutral by the UBS Investment Research or Bellwether by
UBS CIO; and
- Maximum sector exposure is 25%.
Screen the Universe.
Dividend-Paying Equities:
- Stocks paying a dividend below 7.5%, aiming to exclude names that may have
unsustainably high dividends; and
- Stocks with positive trailing 12-month free cash flow and positive current
year sales growth, providing fundamental dividend support.
Valuation Considerations:
- Stocks with a forward P/E ratio less than the Russell 3000 (R) Index (For
REITs only: stocks with Price to Funds from Operations (FFO) ratio less than
16.5); and
- Stocks with a forward P/E ratio greater than 7.0x, aiming to avoid
potential value traps.
The final stocks were selected by the Sponsor based on the criteria above.
The Trust is not sponsored or endorsed by UBS and UBS makes no representation
or warranty, express or implied, to the Unit holders of the Trust or any
member of the public regarding the advisability of investing in Units of the
Trust. UBS's only relationship to the Sponsor or the Trust is the licensing of
certain trademarks and the development UBS Yield at Reasonable Price: Equity
Advisor Group 2019 Series, which is determined and composed by UBS without
regard to the Trust or its Unit holders. UBS has no obligation or liability in
connection with the investment decisions made by the Sponsor or Trust or in
connection with administration of the Trust. Although First Trust selects the
stocks, it may not reflect every stock on the list.
The S&P 500 (R) Index is an unmanaged index of 500 stocks used to measure
large-cap U.S. stock market performance. The Russell 3000 (R) Index is
comprised of the 3,000 largest and most liquid stocks based and traded in the
United States. An index cannot be purchased directly by investors. Past
performance is no guarantee of future results.
Based on the composition of the portfolio on the Initial Date of Deposit, the
Trust is considered to be a Large-Cap Value Trust.
From time to time in the prospectus or in marketing materials we may identify
a portfolio's style and capitalization characteristics to describe a trust.
These characteristics are designed to help you better understand how the Trust
may fit into your overall investment plan. These characteristics are
determined by the Sponsor as of the Initial Date of Deposit and, due to
changes in the value of the Securities, may vary thereafter. In addition, from
time to time, analysts and research professionals may apply different criteria
to determine a Security's style and capitalization characteristics, which may
result in designations which differ from those arrived at by the Sponsor. In
general, growth stocks are those with high relative price-to-book ratios while
value stocks are those with low relative price-to-book ratios. At least 65% of
the stocks in a trust on the trust's initial date of deposit must fall into
either the growth or value category for a trust itself to receive the
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designation. Trusts that do not meet this criteria are designated as blend
trusts. In determining market capitalization characteristics, we analyze the
market capitalizations of the 3,000 largest stocks in the United States
(excluding foreign securities, American Depositary Receipts/ADRs, limited
partnerships and regulated investment companies). Companies with market
capitalization among the largest 10% are considered Large-Cap securities, the
next 20% are considered Mid-Cap securities and the remaining securities are
considered Small-Cap securities. Both the weighted average market
capitalization of a trust and at least half of the Securities in a trust must
be classified as either Large-Cap, Mid-Cap or Small-Cap in order for a trust
to be designated as such. Trusts, however, may contain individual stocks that
do not fall into its stated style or market capitalization designation.
Of course, as with any similar investments, there can be no assurance that the
objective of the Trust will be achieved. See "Risk Factors" for a discussion
of the risks of investing in the Trust.
Risk Factors
Price Volatility. The Trust invests in common stocks. The value of the 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 Trust is 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
of the Trust will be positive over any period of time, especially the
relatively short 15-month life of the Trust, or that you will not lose money.
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.
Current Economic Conditions. The global economy continues to experience
moderate growth. At the same time developed and developing economies outside
the United States are broadly experiencing economic recoveries on a regional
and global perspective. Worldwide, central bank monetary policy is trending
towards policies of interest rate normalization though at different levels of
commitment and in varying degrees of progress.
As economies around the world have begun to reflate, inflation has trended
modestly higher but so far not to worrisome levels. Inflation remains
relatively tame worldwide, partly reflecting unemployment rates, worker
participation rates and a continuation of the process of financial
deleveraging in major developed economies. The global employment situation has
improved but upside to wage growth remains challenged, as the effects of
globalization and technology continue to weigh on labor markets in many
countries and regions. Prices of most primary commodities, a driving force
behind some emerging market economies, have come off their highs recently due
to a number of factors including regional economic slowdowns and concerns tied
to trade skirmish/war risk. Recent strength of the U.S. dollar against a
number of foreign currencies has negatively impacted sentiment towards foreign
assets and attracted investors to U.S. assets. Concern about the continued
strength in the price of oil would appear somewhat overstated considering the
effects of technology on production, distribution and usage, which are counter-
inflationary over the intermediate to long term.
Monetary risk remains a concern should central banks raise their benchmark
rates suddenly at a quicker pace and to unexpectedly higher levels.
Tax reform in the United States, in the form of tax cuts and opportunity for
repatriation of earnings for corporations, could provide liquidity as the
Federal Reserve removes stimulus via the process of normalization. In effect,
this could enable companies to navigate the process of interest rate
normalization without as much disruption as some expect.
Tariff risk could possibly recede quickly should resolution appear on the
horizon. For now, fundamentals stateside (economic and corporate revenue and
earnings) do not appear to be showing signs of deterioration but rather look
to have further room for improvement.
Due to the current state of uncertainty in 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.
Dividends. 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.
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
Page 11
to be concentrated in that particular sector. If the 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 Trust is concentrated in stocks of consumer products companies.
Consumer Products. Collectively, consumer discretionary companies and consumer
staples companies are categorized as consumer product companies. General risks
of these companies include cyclicality of revenues and earnings, economic
recession, currency fluctuations, changing consumer tastes, extensive
competition, product liability litigation and increased governmental
regulation. Generally, spending on consumer products is affected by the
economic health of consumers. A weak economy and its effect on consumer
spending would adversely affect consumer product companies.
Foreign Securities. Certain of the Securities held by the Trust are issued by
foreign entities, which makes the Trust subject to more risks than if it
invested solely in domestic securities. A foreign Security held by the Trust
is either directly listed on a U.S. securities exchange, is in the form of an
American Depositary Receipt/ADR or a Global Depositary Receipt/GDR which
trades on the over-the-counter market or is listed on a U.S. or foreign
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 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, Global Depositary Receipts/GDRs 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.
Emerging Markets. Certain of the Securities held by the Trust 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, 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.
REITs. Certain of the Securities held by the Trust are issued by REITs. 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
Page 12
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.
Small and/or Mid Capitalization Companies. Certain of the Securities held by the
Trust are issued by small and/or mid capitalization companies. 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.
Cybersecurity Risk. 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. 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. Cybersecurity
breaches may involve unauthorized access to digital information systems
utilized by the Trust 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 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 Sponsor of, and
third-party service provider to, the Trust 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
Trust does not directly control the cybersecurity systems of issuers or third-
party service providers.
Securities Selection. The Yield at a Reasonable Price stock selections do not
refer to creating a single portfolio of these stocks and do not account for
weightings, diversification or other portfolio considerations and are not a
guarantee of future performance. While the Securities in the Trust mirror the
Yield at a Reasonable Price stock selections as of May 13, 2019, these
strategists may choose for any reason not to recommend (or to recommend the
sale of) any or all of the Securities for another purpose or at a later date.
This may affect the value of the Units. In addition, UBS and its affiliates,
in their general securities business may act as agent or principal in
connection with buying and selling stocks, including the Securities, and may
have executed securities transactions on behalf of the Trust, thereby
benefiting. UBS currently provides equity research coverage on each of the
stocks in the portfolio and may make research recommendations at a later date
that may conflict with the Security selection for the portfolio. Further, UBS
may choose at any time to cease research coverage of any Security in the
portfolio. In the future, UBS may seek to provide investment banking or other
services to any of the issuers of the Securities.
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 Trust. In addition, litigation
regarding any of the issuers of the Securities, such as that concerning Altria
Group, 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.
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 and changes in the value of the
Income and/or Capital Accounts.
Page 13
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 the Trust's
organization costs (including costs of preparing the registration statement,
the Indenture and other closing documents, registering Units with the SEC and
states, the initial audit of the 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 the Trust.
Securities will be sold to reimburse the Sponsor for the Trust's organization
costs at the end of the initial offering period (a significantly shorter time
period than the life of the Trust). 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
the Trust to fully reimburse the Sponsor. In that event, the net asset value
per Unit of the 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 the Trust
in "Notes to Statement 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 the 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 the
Trust as existed prior to such sale.
Minimum Purchase.
The minimum amount per account you can purchase of the 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 is comprised of a transactional sales charge and a
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
1.90% of the Public Offering Price and the sum of the maximum remaining
deferred sales charge and creation and development fee (initially $.190 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 and as deferred sales charge and creation and development fee
payments are made.
Monthly Deferred Sales Charge. In addition, three monthly deferred sales
charge payments of $.045 per Unit will be deducted from the Trust's assets on
approximately the twentieth day of each month from August 20, 2019 through
October 18, 2019. If you buy Units at a price of less than $10.00 per Unit,
the 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 $.055 per Unit accrued on a daily basis from the end of the initial
offering period through the Mandatory Termination Date. 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 0.55% of the Public Offering Price.
Discounts for Certain Persons.
The maximum sales charge is 1.90% 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
Page 14
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 the 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 Trust.
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 the 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 the 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 Trust 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
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
Page 15
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 Trust 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 Trust.
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.
Certain commercial banks may be making Units of the Trust 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 this
Trust 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 advisors, 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
Page 16
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 the Trust, 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 the 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 the 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 the 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 the Trust (which may
show performance net of the expenses and charges the 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 the Trust differ from other comparative investments. You
should not assume that these performance comparisons will be representative of
the 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 the 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 the Trust is considered a
profit or loss (see Note 2 of "Notes to Schedule 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.
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 that 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.
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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 the Trust are listed under "Fee Table." If
actual expenses of the Trust exceed the estimate, the Trust will bear the
excess. The Trustee will pay operating expenses of the Trust from the Income
Account of the 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 Trust. 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 Trust. As
Sponsor, we will receive brokerage fees when the Trust uses 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 the Trust. The 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 the 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 the Trust for creating and developing
the Trust, including determining the 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 $.055 per Unit accrued on a
daily basis from the end of the initial offering period through the Mandatory
Termination Date. The Trustee will deduct the accrued amount from the Trust's
assets on each distribution date. If you redeem your Units prior to the
Mandatory Termination Date, you will not be assessed any unaccrued creation
and development fee. We do not use this fee to pay distribution expenses or as
compensation for sales efforts.
In addition to the Trust's operating expenses and those fees described above,
the Trust 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 the Trust and your
rights and interests;
- 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 the Trust;
- Payment for any loss, liability or expenses we incurred without negligence,
bad faith or willful misconduct in acting as Sponsor of the Trust;
- 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 the Trust.
The above expenses and the Trustee's annual fee are secured by a lien on the
Trust. In addition, if there is not enough cash in the Income or Capital
Account, 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.
In the opinion of Chapman and Cutler LLP, this section discusses some of the
main U.S. federal income tax consequences of owning Units of the Trust as of
the date of this prospectus. Tax laws and interpretations change frequently,
and this summary does not describe all of the tax consequences to all
taxpayers. For example, this summary generally does 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
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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 Trust.
This summary 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.
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 Trust intends to qualify as a "regulated investment company," commonly
known as a "RIC," under the federal tax laws. If the Trust qualifies as a RIC
and distributes its income as required by the tax law, the 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 the
Trust.
Income from the Trust.
Trust distributions are generally taxable. After the end of each year, you
will receive a tax statement that separates the 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 the 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, the 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 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 the 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 the 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 the 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 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. Dividends that do not meet these
requirements will generally be taxed at ordinary income tax rates. After the
end of the tax year, the 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 the Trust from certain
corporations.
Because the Trust holds REIT shares, some dividends may be designated by the
REIT as capital gain dividends and, therefore, distributions from the Trust
attributable to such dividends and designated by the Trust 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 the Trust from the REIT shares may be designated by the 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 the 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.
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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 the 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 the Trust
holds an equity interest in PFICs, the 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 the Trust Unit holders. Similarly, if the Trust invests in a fund
(a "Portfolio Fund") that invests in PFICs, the Portfolio Fund may be subject
to such taxes. The 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 or on a Portfolio Fund. The Trust (or the Portfolio Fund) may be able to
make an election that could limit the tax imposed on the Trust (or the
Portfolio Fund). In this case, the Trust (or the Portfolio Fund) 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, the Trust (or the Portfolio Fund) 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 the 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 certain
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.
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 was also
scheduled to apply 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 the Trust directly or indirectly invests in non-U.S. stocks, the tax
statement that you receive may include an item showing foreign taxes the Trust
paid to other countries. You may be able to deduct or receive a tax credit for
your share of these taxes. The 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 Trust assets when you redeem your
Units. This distribution is subject to tax, and you will generally recognize
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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 the 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.
Retirement Plans
You may purchase Units of the Trust 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 Trust for the year;
- A list of any Securities sold during the year and the Securities held at the
end of that year by the Trust;
- 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 the Trust's
Securities to the Income Account of the Trust. All other receipts, such as
return of capital or capital gain dividends, are credited to the Capital
Account of the Trust. Dividends received on foreign Securities, if any, are
converted into U.S. dollars at the applicable exchange rate.
The Trustee will make distributions on or near the Income Distribution Dates
to Unit holders of record on the preceding Income Distribution Record Date.
See "Summary of Essential Information." No income distribution will be paid if
accrued expenses of the Trust exceed amounts in the Income Account on the
Distribution Dates. Distribution amounts will vary with changes in the Trust's
fees and expenses, in dividends received and with the sale of Securities. The
Trustee will distribute amounts in the Capital Account, net of amounts
designated to meet redemptions, pay the deferred sales charge and accrued
creation and development fee or pay expenses on the twenty-fifth day of each
month to Unit holders of record on the tenth day of each month provided the
amount 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. If the Trustee does not have your
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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 the
Trust to pay the deferred sales charge. If not, the Trustee may sell
Securities to meet the shortfall.
Within a reasonable time after the Trust is terminated, unless you are a
Rollover Unit holder, you will receive a 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
your Trust, after deducting any unpaid expenses.
The Trustee may establish reserves (the "Reserve Account") within the Trust to
cover anticipated state and local taxes or any governmental charges to be paid
out of the Trust.
Distribution Reinvestment Option. You may elect to have each distribution of
income and/or capital reinvested into additional Units of the 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 the 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.
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, 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 10 business days prior to the 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. 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
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of Securities that make up the portfolio, and cash from the Capital Account
equal to the fractional shares to which you are entitled.
If you elect to receive an In-Kind Distribution of Securities, 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 the 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 the Trust not designated to
purchase Securities;
2. the aggregate underlying value of the Securities held in the 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
the Trust;
2. any amounts owed to the Trustee for its advances;
3. estimated accrued expenses of the Trust, if any;
4. cash held for distribution to Unit holders of record of the 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 the Trust; and
dividing
1. the result by the number of outstanding Units of the 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
The Trust's portfolio has been selected on the basis of dividend income and
capital appreciation for a limited time period. When the Trust is about to
terminate, you may have the option to roll your proceeds into the next series
of the Trust (the "New Trust") if one is available. We intend to create the
New Trust in conjunction with the termination of the Trust and plan to apply
the same strategy we used to select the portfolio for the Trust to the New
Trust.
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 the
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.
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Removing Securities from the Trust
The portfolio of the Trust is 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 the Trust as a "regulated investment company" in the case
of the 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 the 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 the Trust;
- As a result of the ownership of the Security, the 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 the 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 for instances in which the Trust acquires Replacement Securities, as
described in "The FT Series," the Trust will generally not acquire any
securities or other property other than the Securities. The Trustee, on behalf
of the Trust 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 acquired by the Trust, at our instruction, they
will either be sold or held in the 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 of the Trust 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 the Trust to facilitate selling Securities, exchanged securities or
property from the Trust. 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 Trust, which may include broker/dealers who sell
Units of the Trust. We do not consider sales of Units of the Trust 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. The 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 the 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, the Trust will terminate on the
Mandatory Termination Date as stated in the "Summary of Essential
Information." The Trust may be terminated earlier:
Page 24
- Upon the consent of 100% of the Unit holders of the Trust;
- If the value of the Securities owned by the 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 the Trust during the initial offering period ("Discretionary
Liquidation Amount"); or
- In the event that Units of the Trust not yet sold aggregating more than 60%
of the Units of the Trust are tendered for redemption by underwriters,
including the Sponsor.
If the Trust is terminated due to this last reason, we will refund your entire
sales charge; however, termination of the 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, the 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 the 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.
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
the Trust is terminated. The Trustee will deduct from the 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 $425 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, 2018, the total partners' capital of First Trust Portfolios L.P.
was $44,255,416.
This information refers only to us and not to the Trust or to any series of
the Trust 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 Trust 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 Trust.
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 advisor. 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.
Page 25
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 Trust; or
- Continue to act as Trustee without terminating the Indenture.
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.
Experts.
The Trust's statement of net assets, including the schedule of investments, as
of the opening of business on the Initial Date of Deposit included in this
prospectus, has been audited by Deloitte & Touche LLP, an independent
registered public accounting firm, as stated in their report appearing herein,
and is 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.
Page 26
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Page 27
First Trust(R)
UBS Yield at a Reasonable Price: Equity Advisory Group 2019 Series
FT 8030
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 the Product Code.
________________________
When Units of the Trust 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 trust, 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. 333-231064) and
- Investment Company Act of 1940 (file no. 811-05903)
Information about the Trust, including its Code 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 Trust 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:
[email protected]
May 20, 2019
PLEASE RETAIN THIS PROSPECTUS FOR FUTURE REFERENCE
Page 28
First Trust(R)
The FT Series
Information Supplement
This Information Supplement provides additional information concerning the
structure, operations and risks of the unit investment trust contained in FT
8030 not found in the prospectus for the Trust. This Information Supplement is
not a prospectus and does not include all of the information you should
consider before investing in the Trust. 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 May 20, 2019. Capitalized terms have been
defined in the prospectus.
Table of Contents
Risk Factors
Securities 1
Dividends 1
Foreign Issuers 1
Emerging Markets 2
REITs 3
Small and/or Mid Capitalization Companies 4
Concentration
Concentration Risk 5
Consumer Products 5
Litigation
Tobacco Industry 5
Securities Selected for UBS Yield at a Reasonable Price: Equity
Advisory Group 2019 Series 6
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.
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.
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
Page 1
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.
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. An investment in Units of the Trust 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.
Page 2
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.
REITs. An investment in Units of the Trust should be made with an
understanding of risks inherent in an investment in 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.
Page 3
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
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.
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.
Page 4
Concentration
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 the 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 Trust is concentrated in stocks of consumer products companies.
Consumer Products. Risks inherent in an investment in the consumer products
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. In general, expenditures on consumer
products will be affected by the economic health of consumers. A weak economy
with its consequent effect on consumer spending would have an adverse effect
on consumer products companies. 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 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.
Litigation
Tobacco Industry. Certain of the issuers of Securities held by the Trust may
be involved in the manufacture, distribution and sale of tobacco products.
Pending litigation proceedings against such issuers in the United States and
abroad cover a wide range of matters including product liability and consumer
protection. Damages claimed in such litigation alleging personal injury (both
individual and class actions), and in health cost recovery cases brought by
governments, labor unions and similar entities seeking reimbursement for
healthcare expenditures, aggregate many billions of dollars.
In November 1998, five of the largest tobacco companies in the United States
entered into the Tobacco Master Settlement Agreement ("MSA") with 46 states to
settle state lawsuits to recover costs associated with treating smoking-
related illnesses. According to the MSA, the tobacco industry is projected to
pay the settling states in excess of $200 billion over 25 years. Four states
settled their tobacco cases separately from the MSA.
In March 2001, five states initiated court proceedings to stop R.J. Reynolds
Tobacco Company ("R.J. Reynolds") from violating provisions of the MSA. The
lawsuits, filed in state courts of Arizona, California, New York, Ohio and
Washington, seek enforcement of restrictions on marketing, advertising and
promotional activities that R.J. Reynolds agreed to under the terms of the
MSA. In June 2002, a California court ruled that R.J. Reynolds unlawfully
placed cigarette ads in magazines with a large percentage of readers aged 12-
17, in violation of the MSA. As a result, R.J. Reynolds was ordered to pay $20
million in sanctions plus attorneys' fees and costs. An Arizona court also
found R.J. Reynolds had violated the MSA. In July 2004, R.J. Reynolds and
Brown & Williamson Tobacco Corporation ("B&W") combined R.J. Reynolds and the
U.S. assets, liabilities and operations of B&W to form Reynolds American Inc.
In July 2017, Reynolds American Inc. merged with and into British American
Tobacco Plc, with Reynolds American Inc. surviving as a wholly owned
subsidiary of British American Tobacco Plc.
On December 15, 2005, the Illinois Supreme Court reversed a $10.1 billion
verdict against Altria Group's Philip Morris USA division ("Philip Morris") in
what is known as the Price case, ordering a lower court to dismiss the case in
which the company was accused of defrauding customers into thinking "light"
cigarettes were safer than regular ones. The Court held that the Federal Trade
Commission specifically authorized the use of "light" and "low tar" to
describe the cigarettes, and, therefore, Philip Morris is not liable under the
Illinois Consumer Fraud Act, even if the terms may be deemed false, deceptive
or misleading. The case was decided on the basis of a state statute and not
federal preemption. The initial $10.1 billion judgment in the Price case was
handed down against Philip Morris by a trial court judge in March 2003. The
Illinois Supreme Court took the unusual step of bypassing the appellate court
in hearing the case on appeal directly from the trial court. The size of the
original award put the company at risk for filing bankruptcy protection. In
addition, because Philip Morris accounts for more than half of the annual
tobacco-settlement payments to the states under the 1998 MSA, such payments
Page 5
could have been in jeopardy. On May 5, 2006 the Illinois Supreme Court denied
the plaintiff's motion for a rehearing, and on November 27, 2006 the Supreme
Court of the United States denied certiorari.
In a suit brought by the Department of Justice against Altria and other
cigarette companies, a U.S. District Court ruled on August 17, 2006, that the
defendants violated the Racketeer Influenced and Corrupt Organizations Act
("RICO"). However, the court refused to grant the $10 billion smoking
cessation campaign and $4 billion youth counter-marketing campaign remedies
requested by the government. The court did rule that Philip Morris must remove
"light" and "ultra light" from its packaging. Altria is appealing this verdict.
On July 6, 2006, the Florida Supreme Court decertified a class and overturned
a trial court's $145 billion punitive damages award against Philip Morris as
excessive and improper as a matter of law.
On December 15, 2008 the Supreme Court of the United States ruled that
consumers may sue Philip Morris under state unfair trade laws. The Court held
that neither the Federal Trade Commission's actions nor the Labeling Act,
which sets forth the required cigarette warning labels, preempted a lawsuit
based on state law. The Court noted that the Labeling Act mandates labels
aimed at providing adequate health warnings, and it bars states from requiring
additional health warnings. But the Labeling Act does not prevent claims that
cigarettes labeled as "light" or "low tar" are fraudulent, deceptive or
misleading.
Additional pending and future litigation and/or legislation could adversely
affect the value, operating revenues, financial position and sustainability of
tobacco companies. The Sponsor is unable to predict the outcome of litigation
pending against tobacco companies or how the current uncertainty concerning
regulatory and legislative measures will ultimately be resolved. These and
other possible developments may have a significant impact upon both the price
of such Securities and the value of Units of Trusts containing such Securities.
Securities Selected for UBS Yield at a Reasonable Price: Equity Advisory Group
2019 Series
Communication Services
______________________
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.
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.
Consumer Discretionary
______________________
Carnival Corporation, incorporated in Panama and headquartered in Miami,
Florida, owns and operates cruise lines worldwide. The company offers cruise
vacations under "Carnival Cruise Lines" and "Princess Cruises," among others.
Ford Motor Company, headquartered in Dearborn, Michigan, makes, assembles and
sells cars, vans, trucks and tractors and their related parts and accessories.
The company also provides financing operations, vehicle and equipment leasing
and insurance operations.
The Gap, Inc., headquartered in San Francisco, California, operates specialty
retail stores in the United States, Canada, France, Germany, Japan and the
United Kingdom. The company's stores sell casual apparel, shoes and other
accessories for men, women and children under a variety of brand names,
including "Gap," "GapKids," "babyGap," "Banana Republic" and "Old Navy."
Kohl's Corporation, headquartered in Menomonee Falls, Wisconsin, operates
family oriented, specialty department stores primarily in the Midwest and Mid-
Atlantic that feature quality, moderately priced apparel, shoes, accessories,
soft home products and housewares.
Macy's, Inc., headquartered in Cincinnati, Ohio, operates department stores
under the brand names "Macy's," "Bloomingdale's" and "bluemercury." The
company offers a wide range of merchandise, including apparel and accessories,
cosmetics, home furnishings and other consumer goods.
Page 6
Tapestry Inc., headquartered in New York, New York, designs, produces and
markets leather goods and accessories under the brand names "Coach," "Kate
Spade" and "Stuart Weitzman." Products include handbags, business cases,
luggage and travel accessories. The company markets its products
internationally.
Consumer Staples
________________
Altria Group, Inc., headquartered in Richmond, Virginia, is a holding company.
Through its subsidiaries, the company manufactures, markets and distributes a
variety of branded cigarettes, cigars and smokeless tobacco products, as well
as wine.
General Mills, Inc., headquartered in Minneapolis, Minnesota, produces a
variety of consumer food products, including ready-to-eat cereals, desserts,
flour and baking mixes, dinner and side dish products, snack products,
beverages and yogurt products. The company manufactures and markets its
products internationally.
Philip Morris International Inc., headquartered in New York, New York,
produces, markets and distributes a variety of branded cigarette and tobacco
products. The company's products are marketed outside the United States
through subsidiaries and affiliates.
Energy
______
Marathon Petroleum Corporation, headquartered in Findlay, Ohio, together with
its subsidiaries, refines, markets and transports petroleum products. The
company's operations are concentrated primarily in the Midwest, Southeast and
Gulf Coast regions of the United States. The company has retail operations
under the brand names "Marathon" and "Speedway."
Financials
__________
First Hawaiian, Inc., headquartered in Honolulu, Hawaii, is a bank holding
company. Through its subsidiary, the company offers banking services and
products such as savings accounts, debit and credit cards, mortgages and
loans. The company is an indirect subsidiary of BNP Paribas, a France-based
financial institution.
Huntington Bancshares Incorporated, headquartered in Columbus, Ohio, is a
multi-state regional bank holding company. Through its subsidiaries, the
company provides full-service commercial and consumer banking services,
mortgage banking services, automobile financing, investment management, trust
services and other financial products and services.
KeyCorp, headquartered in Cleveland, Ohio, through its subsidiaries, conducts
a commercial and retail banking business via full-service banking offices
located throughout the United States. The company also provides trust,
personal financial cash management, investment banking, securities brokerage
and international banking services.
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.
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.
Regions Financial Corporation, headquartered in Birmingham, Alabama, is a
regional bank holding company operating full-service banking offices in
Alabama, Arkansas, Florida, Georgia, Louisiana, South Carolina, Tennessee and
Texas.
Health Care
___________
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.
Cardinal Health, Inc., headquartered in Dublin, Ohio, distributes a broad line
of pharmaceuticals, surgical and hospital supplies, therapeutic plasma and
other specialty pharmaceutical products, health and beauty care products and
other items typically sold by hospitals, retail drug stores and other health
care providers. The company also makes, leases and sells point-of-use pharmacy
systems, provides pharmacy management services and franchises apothecary-style
pharmacies.
Page 7
CVS Health Corporation, headquartered in Woonsocket, Rhode Island, is a
drugstore chain specializing in prescription drugs, over-the-counter drugs,
photofinishing services and film, greeting cards, beauty and cosmetics,
convenience foods and seasonal merchandise.
Gilead Sciences, Inc., headquartered in Foster City, California, discovers,
develops and commercializes treatments for important viral diseases. The
company develops treatments for diseases caused by human immunodeficiency
virus, hepatitis B virus and influenza virus.
Patterson Companies, Inc., headquartered in St. Paul, Minnesota, distributes
dental supplies and equipment to dentists, dental laboratories and
institutions in the United States and Canada. The company also produces
veterinary supplies for companion pets which it distributes to veterinarians.
Industrials
___________
United Parcel Service, Inc. (Class B), headquartered in Atlanta, Georgia,
delivers packages and documents both domestically and internationally. In
addition, the company provides management of supply chains and logistic
services for major corporations worldwide and also owns "Mail Boxes Etc., Inc."
Information Technology
______________________
Broadcom Inc., headquartered in San Jose, California, is a semiconductor
manufacturer. The company's product portfolio serves multiple applications
within various communication and industrial markets.
Materials
_________
Southern Copper Corporation, headquartered in Phoenix, Arizona, engages in
mining of open pit mines; milling and flotation of copper ore to produce
copper concentrates; smelting of copper concentrates to produce blister
copper; and refining blister copper to produce copper cathodes. The company
operates the Toquepala and Cuajone open pit mines in the Andes, Peru; and the
Cananea mine and La Caridad mine in northern Mexico.
Real Estate
___________
Brixmor Property Group Inc., headquartered in New York, New York, together
with its subsidiaries, is a real estate investment trust which owns and
operates grocery shopping centers. The company serves customers in the United
States.
The Macerich Company, headquartered in Santa Monica, California, is a self-
managed real estate investment trust involved in the acquisition, ownership,
redevelopment, management and leasing of regional and community shopping
centers nationwide.
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.
Taubman Centers, Inc., headquartered in Bloomfield Hills, Michigan, operates
as a real estate investment trust that engages in the ownership, management,
leasing, acquisition, development and expansion of regional retail shopping
centers and interests therein.
We have obtained the foregoing company descriptions from third-party sources
we deem reliable.
Page 8
UNDERTAKING TO FILE REPORTS
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 8030, 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 8030, 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 May 20, 2019.
FT 8030
By FIRST TRUST PORTFOLIOS L.P.
Depositor
By 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, ) May 20, 2019
the General Partner of First Trust )
Portfolios L.P. )
) Elizabeth H. Bull
) Attorney-in-Fact**
* The title of the person named herein represents his capacity in and
relationship to First Trust Portfolios L.P., the Depositor.
** An executed copy of the related power of attorney was filed with the
Securities and Exchange Commission in connection with the Amendment No.
1 to Form S-6 of FT 7359 (File No. 333-224320) and the same is hereby
incorporated herein by this reference.
S-3
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the use in this Amendment No. 1 to Registration Statement
No. 333-231064 on Form S-6 of our report dated May 20, 2019, relating to the
financial statement of FT 8030, comprising UBS Yield at a Reasonable Price:
Equity Advisory Group 2019 Series, appearing in the Prospectus, which is a part
of such Registration Statement, and to the reference to us under the heading
"Experts" in such Prospectus.
/s/ DELOITTE & TOUCHE LLP
Chicago, Illinois
May 20, 2019
S-4
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
Exhibit 3.1 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.
S-5
EXHIBIT INDEX
1.1 Form of 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 Form of Trust Agreement for FT 8030 and certain subsequent Series,
effective May 20, 2019 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 Copy of 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 Copy of 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 Copy of 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 Copy of 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 Copy of 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-6
3.1 Opinion of counsel as to legality of securities being registered.
4.1 Consent of First Trust Advisors L.P.
6.1 List of Principal Officers of the Depositor (incorporated by
reference to Amendment No. 1 to Form S-6 [File No. 333-230481] filed
on behalf of FT 8001).
7.1 Power of Attorney executed by the Director listed on page S-3 of this
Registration Statement (incorporated by reference to Amendment No. 1
to Form S-6 [File No. 333-224320] filed on behalf of FT 7359).
S-7
MEMORANDUM
FT 8030
File No. 333-231064
The Prospectus
and the Indenture filed with Amendment No. 1 of the Registration Statement on Form S-6 have been revised to reflect information
regarding the execution of the Indenture and the deposit of Securities on May 20, 2019 and to set forth certain statistical data
based thereon. In addition, there are a number of other changes described below.
THE
PROSPECTUS
| Cover Page |
The date of the Trust has been added. |
| Page 3 |
The following information for the Trust appears: |
| |
The Aggregate Value of Securities initially deposited has been added. |
| |
The initial number of Units of the Trust |
| |
Sales charge |
| |
The Public Offering Price per Unit as of the business day before the Initial Date of Deposit |
| |
The Mandatory Termination Date has been added. |
| Page 5 |
The Report of Independent Registered Public Accounting Firm has been completed. |
| Page 6 |
The Statement of Net Assets has been completed. |
| Pages 7-8 |
The Schedule of Investments has been completed. |
| Back Cover |
The date of the Prospectus has been included. |
THE
TRUST AGREEMENT AND STANDARD TERMS AND CONDITIONS OF TRUST
The Trust
Agreement has been conformed to reflect the execution thereof.
CHAPMAN AND CUTLER LLP
May 20, 2019
FT 8030
TRUST AGREEMENT
Dated: May 20, 2019
The Trust
Agreement among First Trust Portfolios L.P., as Depositor, The Bank of New York Mellon, as Trustee, First Trust Advisors L.P.,
as Evaluator and Portfolio Supervisor, sets forth certain provisions in full and incorporates other provisions by reference to
the document entitled "Standard Terms and Conditions of Trust for FT 4484 and certain subsequent Series, Effective: November
6, 2013" as amended by Amendment dated September 5, 2017 (herein called the "Standard Terms and Conditions of Trust"),
and such provisions as are incorporated by reference constitute a single instrument. All references herein to Articles and Sections
are to Articles and Sections of the Standard Terms and Conditions of Trust.
WITNESSETH
THAT:
In consideration
of the premises and of the mutual agreements herein contained, the Depositor, the Trustee, the Evaluator, the Portfolio Supervisor
agree as follows:
PART I
STANDARD TERMS AND CONDITIONS
OF TRUST
Subject to
the provisions of Part II and Part III hereof, all the provisions contained in the Standard Terms and Conditions of Trust
are herein incorporated by reference in their entirety and shall be deemed to be a part of this instrument as fully and to the
same extent as though said provisions had been set forth in full in this instrument. Facsimile or electronic signatures (including
signatures in Portable Document Format (PDF)) to this Trust Agreement shall be acceptable and binding, and this Trust Agreement
may be delivered by facsimile or other electronic means (including by electronic mail or a designated document storage website).
PART II
SPECIAL TERMS AND CONDITIONS OF
TRUST
UBS YIELD AT A REASONABLE PRICE: EQUITY
ADVISORY GROUP 2019 SERIES
The following
special terms and conditions are hereby agreed to:
A. The
Securities initially deposited in the Trust pursuant to Section 2.01 of the Standard Terms and Conditions of Trust are set
forth in Schedule A hereto.
B. The
aggregate number of Units delivered by the Trustee on the Initial Date of Deposit in exchange for the Securities pursuant to Section
2.03 of the Standard Terms and Conditions of Trust and the initial fractional undivided interest in and ownership of the Trust
represented by each Unit thereof are set forth in the Prospectus in the section "Summary of Essential Information."
Documentation
confirming the ownership of this number of Units for the Trust is being delivered by the Trustee to the Depositor pursuant to Section 2.03
of the Standard Terms and Conditions of Trust.
C. The
Record Date shall be as set forth in the Prospectus under "Summary of Essential Information." The Trustee shall pay the
amounts specified in Part I of Section 3.05 of the Standard Terms and Conditions of Trust accrued as of the Record Date on or shortly
after the last Business Day of the month in which the Record Date occurs.
D. The
Distribution Date shall be the 25th day of the month in which the related Record Date occurs.
E. The
Mandatory Termination Date for the Trust shall be as set forth in the Prospectus under "Summary of Essential Information."
F. First
Trust Advisors L.P.'s compensation as referred to in Section 4.03 of the Standard Terms and Conditions of Trust and shall
be an annual fee in the amount of $.0080 per Unit.
G. The
Trustee's compensation rate pursuant to Section 6.04 of the Standard Terms and Conditions of Trust shall be an annual fee
in the amount of $.0096 per Unit. However, in no event shall the Trustee receive compensation in any one year from any Trust of
less than $2,000.
H. The
Initial Date of Deposit for the Trust is May 20, 2019.
I. There
is no minimum amount of Securities to be sold by the Trustee pursuant to Section 5.02 of the Indenture for the redemption
of Units.
J. The
minimum number of Units a Unit holder must redeem in order to be eligible for an in-kind distribution of Securities pursuant to
Section 5.02 shall be 2,500 Units of the Trust. No in-kind distribution requests submitted during the 10 business days prior to
the Trust’s Mandatory Termination Date will be honored.
K. No
Unit holder will be eligible for an in-kind distribution of Securities pursuant to Section 8.02.
PART III
A. The
second paragraph of Section 3.02 of the Standard Terms and Conditions of Trust shall be amended to read as follows:
"With
respect to any Trust which is a widely held fixed investment trust as defined in Treas. Reg. Section 1.671-5(b)(22), any non-cash
distributions received by a Trust shall be sold to the extent they would be treated as dividend or interest income under the Internal
Revenue Code and the proceeds shall be credited to the Income Account. Except as provided in the preceding sentence, non-cash distributions
received by a Trust (other than a non-taxable distribution of the shares of the distributing corporation which shall be retained
by a Trust) shall be dealt with in the manner described in Section 3.11 hereof, and shall be retained or disposed of by such Trust
according to those provisions and the proceeds thereof shall be credited to the Capital Account. Neither the Trustee nor the Depositor
shall be liable or responsible in any way for depreciation or loss incurred by reason of any such sale."
B. Notwithstanding
anything to the contrary in the Standard Terms and Conditions of Trust, Section 3.18 shall be replaced with the following:
"Section
3.18. Authority of Portfolio Supervisor to Cause the Purchase or Sale or Depositor to Purchase or Sell Securities for the Account
of the Trust. Whenever in the Indenture it is provided that the Trustee or the Depositor shall purchase or sell Securities, the
Portfolio Supervisor is authorized to, and shall, cause the Securities to be purchased or sold, for the account of the Trust. Should
the Portfolio Supervisor fail to cause such purchase or sale, the Depositor shall effect the purchase or sale, and the Trustee
shall purchase or sell Securities only in the event that the Trustee would otherwise be directed to make the purchase or sale pursuant
to the provisions of the Indenture and both the Portfolio Supervisor and the Depositor have failed to make or cause such purchase
or sale. Neither the Trustee nor the Depositor shall have any responsibility or liability for any purchase or sale of Securities
caused by the Portfolio Supervisor and the Trustee shall have no responsibility or liability for any purchase or sale of Securities
made by the Depositor or for any failure of the Portfolio Supervisor or Depositor to make, or cause, any purchase or sale required
by this Section or otherwise by the Indenture."
IN WITNESS
WHEREOF, First Trust Portfolios L.P., The Bank of New York Mellon and First Trust Advisors L.P. have each caused this Trust Agreement
to be executed and the respective corporate seal to be hereto affixed and attested (if applicable) by authorized officers; all
as of the day, month and year first above written.
FIRST TRUST PORTFOLIOS L.P.,
Depositor
First
Trust Advisors, L.P.,
Evaluator and Portfolio Supervisor
By Elizabeth H. Bull
Senior Vice President of:
First Trust Portfolios
L.P. and
First Trust Advisors
L.P.
THE BANK OF NEW YORK MELLON, Trustee
By Joan A. Currie
Director
[SEAL]
ATTEST:
Elizabeth A. Fernandes
Vice President
SCHEDULE A TO TRUST AGREEMENT
Securities Initially Deposited
FT 8030
(Note: Incorporated
herein and made a part hereof for the Trust is the "Schedule of Investments" for the Trust as set forth in the Prospectus.)
| Chapman and Cutler LLP |
111 West Monroe Street |
| |
Chicago, Illinois 60603 |
May 20, 2019
First Trust Portfolios L.P.
120 East Liberty Drive
Suite 400
Wheaton, Illinois 60187
Re: FT 8030
Gentlemen:
We have served
as counsel for First Trust Portfolios L.P., as Sponsor and Depositor of FT 8030 in connection with the preparation, execution and
delivery of a Trust Agreement dated May 20, 2019 among First Trust Portfolios L.P., as Depositor, The Bank of New York Mellon,
as Trustee, and First Trust Advisors L.P., as Evaluator and Portfolio Supervisor, pursuant to which the Depositor has delivered
to and deposited the Securities listed in Schedule A to the Trust Agreement with the Trustee and pursuant to which the Trustee
has issued to or on the order of the Depositor units of fractional undivided interest in and ownership of the Fund created under
said Trust Agreement.
In connection
therewith, we have examined such pertinent records and documents and matters of law as we have deemed necessary in order to enable
us to express the opinions hereinafter set forth.
Based upon
the foregoing, we are of the opinion that:
1. the
execution and delivery of the Trust Agreement and the issuance of Units in the Fund have been duly authorized; and
2. the
Units in the Fund when duly issued and delivered by the Trustee in accordance with the aforementioned Trust Agreement, will constitute
valid and binding obligations of the Fund and the Depositor and such Units, when issued and delivered in accordance with the Trust
Agreement against payment of the consideration set forth in the Trust prospectus, will be validly issued, fully paid and non-assessable.
We hereby
consent to the filing of this opinion as an exhibit to the Registration Statement (File No. 333-231064) relating to the Units referred
to above, to the use of our name and to the reference to our firm in said Registration Statement and in the related Prospectus.
Respectfully
submitted,
CHAPMAN
AND CUTLER LLP
EFF/mjd
First Trust Advisors L.P.
120 East Liberty Drive
Wheaton, Illinois 60187
May 20, 2019
First Trust Portfolios L.P.
120 East Liberty Drive
Suite 400
Wheaton, Illinois 60187
Re: FT 8030
Gentlemen:
We have examined
the Registration Statement File No. 333-231064 for the above captioned fund. We hereby consent to the use in the Registration Statement
of the references to First Trust Advisors L.P. as evaluator.
You are hereby
authorized to file a copy of this letter with the Securities and Exchange Commission.
Sincerely,
FIRST TRUST ADVISORS
L.P.
Elizabeth H. Bull
Senior Vice President
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