FT 3328 seeks state, federal tax-free income for California residents

By Toni Weeks

San Diego, Jan. 6 - FT 3328 is offering units of its California Municipal Income Select Closed-End Portfolio, Series 7, according to an S-6 amendment filed with the Securities and Exchange Commission.

The depositor is Wheaton, Ill.-based First Trust Portfolios LP.

The trust seeks monthly income that is exempt from federal, California state and/or local income taxes by investing in a diversified portfolio of common stocks issued by closed-end investment companies that invest primarily in tax-exempt California municipal bonds.

On the initial date of deposit, Jan. 6, the trust consists of $169,108 in contracts to purchase securities. The 17,082 units each have an initial public offering price of $10 and net asset value of $9.576. The estimated net annual distribution per unit for the first year is $0.5661.

The units each carry a maximum sales charge of 3.95%, consisting of a 1% initial sales charge, a 2.45% deferred sales charge and a 0.5% creation and development fee. The fee may be reduced on a sliding scale to 2.45% depending on the amount of investment.

The trust has a mandatory termination date of Jan. 7, 2014.

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