Q-GARP Portfolio an Exclusive UBS Portfolio
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Series 2016-2Q, ADT 1673 Q-GARP Portfolio An exclusive UBS Portfolio Ticketing Information Investment Objective & Principal Investment Strategy CUSIP (Cash) 00774H106 CUSIP (Reinvest) 00774H114 The Q-GARP Portfolio is a unit investment trust (UIT) that seeks to provide above- CUSIP (Fee-Based Cash) 00774H122 average total return through dividend income and capital appreciation. The portfolio CUSIP (Fee-Based Reinvest) 00774H130 invests in stocks on UBS Financial Services Inc.’s (“UBS”) Q-GARP (Quality Growth at a Ticker Symbol GARPDX Reasonable Price) stock list as of June 10, 2016. The portfolio is unmanaged and will not make changes to trace the stock list over time. As a result, performance of the portfolio Essential Information+ may vary from the stock list’s performance. Unit price at inception (per unit) $10.0000 Initial redemption price (per unit) $9.7550 UBS is partnering with AAM, a solutions partner for advisors and broker/dealers offering Initial date of deposit 6/21/2016 Portfolio ending date 9/20/2017 an array of financial tools, leading technologies and industry expertise. AAM has its own Distribution frequency Semi-Annual brand of unit investment trusts and differentiates itself through a focused selection of UIT Est. net annual distribution per unit* $0.1063 offerings, with an emphasis on solid investment disciplines and specific asset classes. +As of 6/20/2016 and may vary thereafter. *The estimate is generally based on the estimate of dividends that the trust will receive by annualizing the most recent dividend declared. Q-GARP Stock Selection The per unit estimate will vary with changes in fees and expenses, actual dividends received and with the sales of To be added to UBS’s Q-GARP stock list, stocks must have: securities. There is no guarantee that the issuers of the An Outperform recommendation by UBS CIO Wealth Management Research (“CIO securities included in the trust will declare distributions in the future or that, if declared, will remain at current levels or WMR”), or increase over time. Where CIO WMR does not cover a stock, a Buy recommendation by UBS Sales Charge (Based on $10 unit price)++ Investment Research. UBS Investment Research is part of UBS Investment Bank. As a % of $1,000 Amount per Standard Accounts invested 100 units Next, to determine whether a stock is included in the list, UBS aggregates the Initial sales fee 1.00% $10.00 standardized scores for eligible stocks, rewarding stocks with the following Deferred sales fee 1.45% $14.50 characteristics: Creation & development fee 0.50% $5.00 High-Quality: UBS uses two variables for this measure. Margin stability, which is Maximum sales fee 2.95% $29.50 defined as the standard deviation of a company’s operating margin over the past 10 Fee-Based Accounts As a % of fee-based Amount per public offering price 100 units years. UBS also includes a profitability metric, as measured by the expected return on equity for a stock over the next 12 months. Maximum sales fee 0.51% $5.00 ++The deferred sales fee is fixed at $0.145 per unit and is paid Growth: Institutional Brokers’ Estimate System’s (“IBES”) three-five year and in three monthly installments beginning October 20, 2016. The consensus 2015-2017 earnings growth forecasts. creation & development fee is fixed at $0.05 per unit and is paid at the end of the initial offering period (anticipated to be Reasonable Price: Price-to-earnings ratio (“PE”) relative to peers and relative three months). The initial and deferred sales fees may not to history. apply to fee-based accounts. See the prospectus for more details about fee-based account eligibility requirements. Stocks that scored poorly on any one metric (typically over one standard deviation below Sales Charge Volume Discounts+++ the mean) are eliminated. To remain eligible for continued inclusion on UBS’s Q-GARP stock list, stocks must maintain an Outperform or Market perform recommendation by If you purchase: Your fee will be: Less than $50,000 2.95% CIO WMR or, where CIO WMR does not cover a stock, a Buy or Neutral recommendation $50,000 - $99,999 2.70% by UBS Investment Research. $100,000 - $249,999 2.45% $250,000 - $499,999 2.20% $500,000 - $999,999 1.95% $1,000,000 or more 1.40% +++Sales charges are as a percentage of the public offering price per unit. These discounts are only available during the initial offering period. The breakpoints will be adjusted to take into consideration purchase orders stated in dollars which cannot be completely fulfilled due to the requirements that only whole units Page 1 of 3 be issued. See the prospectus for details about sales charge discounts including all available discounts. Advisors Asset Management, Inc. (AAM) is a SEC registered investment advisor and member FINRA/SIPC. Q-GARP Portfolio Series 2016-2Q, ADT 1673 An exclusive UBS portfolio Portfolio Holdings (as of date of deposit) Country of Organization* % of Portfolio Country of Issuer Name Ticker Sector Organization United States 87.85% Ireland 6.08% Comcast Corporation CMCSA Consumer Discretionary US Bermuda 3.04% Hilton Worldwide Holdings, Inc. HLT Consumer Discretionary US Netherlands 3.03% Lowe's Companies, Inc. LOW Consumer Discretionary US Source: Bloomberg O'Reilly Automotive, Inc. ORLY Consumer Discretionary US Starbucks Corporation SBUX Consumer Discretionary US Sector Diversification* The Home Depot, Inc. HD Consumer Discretionary US % of Portfolio The TJX Companies, Inc. TJX Consumer Discretionary US Consumer Discretionary 27.29% The Walt Disney Company DIS Consumer Discretionary US Health Care 18.19% Time Warner, Inc. TWX Consumer Discretionary US Colgate-Palmolive Company CL Consumer Staples US Industrials 18.15% CVS Health Corporation CVS Consumer Staples US Information Technology 18.08% Ameriprise Financial, Inc. AMP Financials US Financials 9.16% Intercontinental Exchange, Inc. ICE Financials US Consumer Staples 6.07% Becton Dickinson and Company BDX Health Care US Materials 3.06% McKesson Corporation MCK Health Care US Source: Global Industrial Classification Standard PAREXEL International Corporation PRXL Health Care US Thermo Fisher Scientific, Inc. TMO Health Care US Danaher Corporation DHR Industrials US Holdings Style Summary* % of Portfolio Honeywell International, Inc. HON Industrials US Rockwell Automation, Inc. ROK Industrials US Large-Cap Blend 15.15% Rockwell Collins, Inc. COL Industrials US Large-Cap Growth 60.54% The Boeing Company BA Industrials US Large-Cap Value 6.07% United Technologies Corporation UTX Industrials US Mid-Cap Blend 9.12% Adobe Systems, Inc. ADBE Information Technology US Mid-Cap Growth 3.04% Alphabet, Inc. GOOGL Information Technology US Mid-Cap Value 3.05% Cognizant Technology Solutions Corporation CTSH Information Technology US Small-Cap Growth 3.03% Facebook, Inc. FB Information Technology US Source: Morningstar Red Hat, Inc. RHT Information Technology US *As of 6/20/2016 and may vary thereafter. Ecolab, Inc. ECL Materials US Breakdowns are based on the sources shown and Country of may differ from any category definitions used in selecting the trust portfolio. Issuer Name Ticker Sector Organization Invesco Ltd IVZ Financials BM Medtronic PLC MDT Health Care IE Mylan MYL Health Care NL Accenture PLC ACN Information Technology IE Page 2 of 3 Q-GARP Portfolio Series 2016-2Q, ADT 1673 An exclusive UBS portfolio Unit Investment Trusts (UITs) are sold only by prospectus. You should consider the trust’s investment objectives, risks, charges and expenses carefully before investing. Contact your financial professional or visit Advisors Asset Management online at www.aamlive.com/uit to obtain a prospectus, which contains this and other information about the trust. Read it carefully before you invest or send any money. Securities offered through your financial professional. Risks and Considerations: Unit values will fluctuate with the portfolio of underlying securities and may be worth more or less than the original purchase price at the time of redemption. There is no guarantee that the objective of the portfolio will be achieved. Additionally, the trust may terminate earlier than the specific termination date as stated in the prospectus. The strategy is considered a long-term one therefore, investors should consider their ability to pursue investing in successive trusts. Consult your tax advisor for possible tax consequences associated with this investment. Units may be well suited for an IRA or other qualified plan. An investment in this unmanaged unit investment trust should be made with an understanding of the following risks: Common Stock: An investment in common stocks should be made with an understanding of the various risks of owning common stock, such as an economic recession and the possible deterioration of either the financial condition of the issuers of the equity securities, the general condition of the stock market, or an impact to the market price. Consumer Products and Services Companies: These companies manufacture or sell various consumer products and/or services. General risks of these companies include the general state of the economy, intense competition and consumer spending trends. Negative developments in this sector will affect the value of your investment more than would be the case in a more diversified investment. Dividend Payment Risk: An issuer of a security may be unwilling or unable to pay income on a security. Common stocks do not assure dividend payments and are paid only when declared by an issuer’s board of directors. The amount of any dividend may vary over time. Foreign Securities: Securities of foreign issuers present risks beyond those of U.S. issuers which may include market and political factors related to the issuer’s foreign market, international trade conditions, less regulation, smaller or less liquid markets, increased volatility, differing accounting practices and changes in the value of foreign securities. Long-Term Strategy: Although this UIT terminates in approximately 15 months, the strategy is long term.