UITs are fixed and not actively managed. You can lose money by investing in the Trust. An investment in this fixed portfolio should be made with an understanding of the risks involved with owning common stocks. Industry predictions may not materialize and securities selected for the Trust may not participate in overall industry growth, if any. There is no guarantee that the portfolio will achieve its investment objective.
The economic condition of the issuers of the securities in the portfolio as well as the stock market, in general, may worsen and therefore reduce the value of the units of the portfolio. This UIT is a long-term strategy, and investors should consider their ability to invest in successive portfolios at the applicable sales charge, if available There are tax consequences associated with an investment from one series to the next. Investors should consult their tax advisor to determine tax consequences associated with an investment from one portfolio to the next, if available. Units of the portfolio may be well suited for purchase by Individual Retirement Accounts or other qualified retirement plans. Consult your attorney or tax advisor regarding tax consequences associated with units held outside one of these tax-deferred vehicles.Claymore Securities, Inc. does not offer tax advice. Investors should consider the investment objectives and policies, risk considerations, charges and ongoing expenses of the UIT carefully before investing. The prospectus contains this and other information relevant to an investment in the Trust.
Please read the accompanying prospectus carefully before you invest or send money. If a free prospectus did not accompany this literature, please contact your securities representative or Claymore Securities, Inc., 2455 Corporate West Drive, Lisle, IL 60532, 800-345-7999. Average annual total return measures the change in the value of an investment assuming reinvestment of all dividends and capital gains and payment of applicable Trust expenses and sales charges. Average annual total returns are for the periods noted through 12/31/06.
These hypothetical results represent past performance of the strategy and not the actual Trust. Past performance does not guarantee future results. Although the Trust seeks to achieve better performance than the S&P 500 IndexTM (“S&P 500”), there can be no assurance that the Trust will achieve better performance over any investment period in the Trust or over rollover periods, if available. All strategy performance is hypothetical (not any actual trust) and reflects Trust sales charges (full sales charge in first year of 2.95% and reduced rollover charge thereafter of 1.95%) and expenses but not brokerage commissions on stocks or taxes. Hypothetical performance is based on the assumption that the portfolio reconstitution would have occurred annually. Past performance is no guarantee of future results. Actual returns will vary from hypothetical strategy returns due to timing differences and because the Trust may not be invested equally in all stocks or be fully invested at all times.
In any given year the strategy may lose money or underperform the index. Monthly gross returns are calculated by taking month-end prices, subtracting them from the prices at the end of the following month (adjusting for any stock splits that might have occurred during the month) and adding dividends (in the case of total returns) received for the period divided by starting price. High returns are highly unusual and cannot be sustained. Investors should also be aware that these returns were primarily achieved during favorable market conditions. Standard & Poor’s 500 IndexTM is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. Indices are statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance.
It is not possible to invest directly in an index. The historical performance of the index is shown for illustrative purposes only; it is not meant to forecast, imply or guarantee the future performance of any particular investment or the Trust, which will vary. Securities in which the Trust invests may differ from those in the index. The Trust will not try to replicate the performance of these indices and will not necessarily invest any substantial portion of its assets in securities in the Index. There is no guarantee that the perceived intrinsic value of a security will be realized. Securities in which the Trust invests may differ from those in the Index. It is not possible to invest directly in the S&P 500 Index. The Securities and Exchange Commission has not approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.
© Pension Builders & Consultants 2007.