FT 3398 registers units, consists of 18 second-quarter 2012 portfolios

By Toni Weeks

San Diego, Feb. 23 - FT 3398 has registered units of 18 portfolios, according to an S-6 amendment filed with the Securities and Exchange Commission.

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

Each of the following units will have a public offering price of $10 and a net asset value of $9.67:

• The Dow Target 5 2Q 2012 portfolio will invest in stocks with high dividend yields. The strategy seeks to uncover stocks that may be out of favor or undervalued and aims to amplify this dividend-yield strategy by selecting the five lowest-priced stocks of the 10 highest dividend-yielding stocks in the Dow Jones Industrial Average.

• The Dow Target Dividend 2Q 2012 portfolio will select a portfolio of the 20 stocks from the Dow Jones U.S. Select Dividend Index with the best overall ranking on both the change in return on assets over the last year and price-to-book.

• The Global Target 15 2Q 2012 portfolio will invest in stocks with high dividend yields. The strategy seeks to uncover stocks that may be out of favor or undervalued by selecting the five lowest-priced stocks of the 10 highest dividend-yielding stocks in each of three indexes, the Dow Jones industrial average, the Financial Times Industrial Ordinary Share index and the Hang Seng index.

• The Nasdaq Target 15 2Q 2012 portfolio selects a portfolio of the 15 Nasdaq 100 index stocks with the best overall ranking on both 12- and six-month price appreciation, return on assets and price-to-cash flow as a means to achieving its investment objective.

• The NYSE International Target 25 2Q 2012 portfolio provides investors with a way to strategically invest in foreign companies by incorporating international investments into an overall portfolio that can offer benefits such as diversification, reduced volatility and the potential for enhanced performance. The 25 stocks comprising the portfolio are selected from the NYSE International 100 index based on price-to-book and price-to-cash flow.

• The S&P Target 24 2Q 2012 portfolio selects 24 common stocks from the Standard & Poor's 500 Composite Stock Price index.

• The S&P Target SMid 60 2Q 2012 portfolio focuses on small and mid-size companies on the assumption that they are more likely to be in an earlier stage of their economic life cycle than mature large-cap companies. The strategy is designed to identify stocks with improving fundamental performance and sentiment. Stocks are selected from the S&P MidCap 400 index and the S&P SmallCap 600 index, with those from the MidCap 400 receiving double the weight.

• The Target 50/50 2Q 2012 portfolio is comprised of half common stocks that comprise the Dow Target Dividend Strategy and half common stocks that comprise the Target VIP Strategy.

• The Target Diversified Dividend 2Q 2012 portfolio seeks to provide the potential for above-average total return through a combination of capital appreciation and dividend income by adhering to one investment strategy.

The Target Dividend Multi-Strategy 2Q 2012 portfolio is comprised of equal amount of stocks of the Dow Target Dividend Strategy, the European Target 20 Strategy, the Global Target 15 Strategy and the Target Diversified Dividend Strategy.

• The Target Double Play 2Q 2012 portfolio seeks to outperform the S&P 500 index by applying two separate strategies, each seeking to provide above-average total return. About half of the portfolio is composed of common stocks from the Dow Target Dividend Strategy, and the other half is composed of common stocks from the Value Line Target 25 Strategy.

• The Target Focus 5 2Q 2012 portfolio is comprised of stocks from five separate strategies, with 24% of the stocks selected from the Dow Target Dividend Strategy, 24% of the stocks selected from the S&P Target SMid 60 Strategy, 24% of the stocks selected from the Value Line Target 25 Strategy, 20% of the stocks selected from the MSCI EAFE Target 20 Strategy and 8% of the stocks selected from the NYSE International Target 25 Strategy.

• The Target Global Dividend Leaders 2Q 2012 portfolio is comprised of 40% domestic equity stocks, 40% international equity stocks and 20% real estate investment trusts.

• The Target Growth 2Q 2012 portfolio invests in stocks with large market capitalizations that have recently exhibited certain specific financial attributes.

• The Target Small-Cap 2Q 2012 portfolio securities were chosen applying the same selection criteria as the Target 50/50 Portfolio.

• The Target VIP Conservative Equity 2Q 2012 portfolio seeks to outperform the S&P 500 index, providing investors with exposure to growth and value stocks as well as several different sectors of the worldwide economy. It selects common stocks of companies selected by applying four separate strategies.

• The Value Line Diversified Target 40 2Q 2012 portfolio invests in 40 of the 400 stocks that Value Line gives a number one or number two ranking for Timeliness and have recently exhibited specific positive financial attributes.

• The Value Line Target 25 2Q 2012 portfolio securities were chosen applying the same selection criteria as the Target 50/50 Portfolio.

Each unit will carry a maximum sales charge of 2.95%, consisting of an initial sales charge of 1%, a deferred sales charge of 1.45% and a creation and development fee of 0.5%. The maximum fee for unit purchasers of $50,000 or more is 2.7% and decreases on a sliding scale to 1.4% for investments of $1 million or more.

The initial date of deposit is planned for March. All portfolios will have a mandatory termination date of July 9, 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.