FT 3274 aims for tax-exempt monthly income for California residents

By Toni Weeks

San Diego, Nov. 15 - FT 3274 has registered units of its California Municipal Income Select Closed-End Portfolio, Series 6, according to an S-6 filing with the Securities and Exchange Commission.

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

The trust invests in a diversified portfolio of common stocks issued by closed-end investment companies that invest primarily in tax-exempt California municipal bonds. The trust seeks monthly income that is exempt from federal, California state and/or local income taxes. A portion of the income may be derived from non-California bonds, however, and these would be taxable to California residents.

The inception date for the trust is expected to be in November. The units will have an offering price of $10.00 and a net asset value of $9.576 each.

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.