FT 3217 offers units, targets stocks of 'financially strong' companies

By Toni Weeks

San Diego, Nov. 16 - FT 3217 registered units of its Market Strength Allocation Select Portfolio, Series 3, 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 above-average capital appreciation by investing in a diversified portfolio of common stocks of companies that exhibit financial strength. Noting that "the credit crisis has underscored the value of a strong balance sheet, a once underappreciated quality," First Trust said the UIT will invest in "undervalued companies with strong market positions" that have strong balance sheets, skilled management, highly liquid balance sheets, the ability to generate earnings growth, and a record of financial strength and profit growth.

On the Nov. 16 initial date of deposit, $296,955 of contracts to purchase securities comprised the trust. The 29,995 units have an offering price of $10 and a net asset value of $9.576 each. The estimated net annual distribution per unit for the first year is $0.1794.

Each unit will carry a maximum sales charge of 3.95%, consisting of an initial sales charge of 1%, a deferred sales charge of 2.45% and a creation and development fee of 0.5%. The maximum fee for unit purchasers of $50,000 or more is 3.7% and decreases on a sliding scale to 2.45% for investments of $1 million or more.

The trust will have a mandatory termination date of Nov. 18, 2013.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.