EQUITY - SECTOR/INDUSTRY FOCUS Series 2016-3, ADT 1741 Aerospace/Defense Opportunities Portfolio // Portfolio Selected by: Peroni Portfolio Advisors, Inc. Investment Objective & Strategy The Aerospace/Defense Opportunities Portfolio is a unit investment trust that invests in a portfolio of common stocks of companies involved in various aspects of the aerospace and defense industry. The securities are selected by Eugene E. Peroni Jr. of Peroni Portfolio Advisors, Inc., the Portfolio Consultant, through the application of his proprietary method of technical analysis, the Peroni Method TM , with consideration of equity investment opportunities within this investment theme. CUSIP (Cash/Reinvest) Fee-Based CUSIP (Cash/Reinvest) Ticker Symbol Ticketing Information 00776F660 / 678 00776F686 / 694 ASDAFX Unit price at inception (per unit) Initial redemption price (per unit) Initial date of deposit Portfolio ending date Distribution frequency Est. net annual dist per unit (1st year)* Est. net annual dist per unit (2nd year)* Essential Information + $10.000 $9.6550 11/22/2016 11/5/2018 Semi-Annual $0.0769 $0.0759 +As of 11/21/2016 and may vary thereafter. *The estimate is generally based on the estimate of dividends the trust will receive by annualizing the most recent dividend declared. The per unit estimate will vary with changes in fees and expenses, actual dividends received and with the sales of securities. The distributions are expected to decrease in the subsequent year as a result of organizational costs, creation and development fee, and deferred sales charges. There is no guarantee that the issuers of the securities included in the trust will declare distributions in the future or that, if declared, will remain at current levels or increase over time. Sales Charges (Based on $10 unit price) ++ Standard Accounts As a % of $1,000 invested Amount per 100 units Initial sales fee Deferred sales fee Creation & Development fee Maximum sales fee 1.00% 2.45% 0.50% 3.95% $10.00 $24.50 $5.00 $39.50 ++ The deferred sales fee is fixed at $0.245 per unit and is paid in three monthly installments beginning March 20, 2017. The creation & development fee is fixed at $0.05 per unit and is paid at the end of the initial offering period (anticipated to be three months). The initial and deferred sales fees may not apply to fee-based accounts. See the prospectus for more details about fee-based account eligibility requirements. Fee-Based Accounts As a % of Fee-Based Public Offering Price Amount per 100 units Maximum sales fee 0.52% $5.00 Sales Charge Volume Discounts +++ Less than $50,000 $50,000 - $99,999 $100,000 - $249,999 $250,000 - $499,999 $500,000 - $999,999 $1,000,000 or more 3.95% 3.70% 3.45% 3.10% 2.95% 2.45% +++ Sales charges are applied 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 be issued. See the prospectus for details about sales charge discounts including all available discounts. If you purchase: You will pay: Morningstar Equity Style Box TM Advisors Asset Management, Inc. (AAM) is a SEC registered investment advisor and member FINRA/SIPC. Page 1 of 4 Why Now? Geopolitical events continue to make headlines across the globe putting increasing focus on home- land security. According to U.S. Military Budget figures, in the United States alone military spending is currently greater than Medicare and the three largest departments combined: Health and Human Services, Education, and Housing and Urban Development. The Aerospace/Defense Opportunities Portfolio strives to take advantage of the longer-term leadership of this industry which may continue to benefit from the heightened tensions surrounding the concerns of global terrorism and military build-ups both in the U.S. and abroad.
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Aerospace/Defense Opportunities Portfolio · ESL Esterline Technologies Corp 84.85 GD General Dynamics Corp 168.43 GE ... Aerospace/Defense Opportunities Portfolio Series 2016-3,
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The Aerospace/Defense Opportunities Portfolio is a unit investment trust that invests in a portfolio of
common stocks of companies involved in various aspects of the aerospace and defense industry.
The securities are selected by Eugene E. Peroni Jr. of Peroni Portfolio Advisors, Inc., the Portfolio
Consultant, through the application of his proprietary method of technical analysis, the Peroni
MethodTM, with consideration of equity investment opportunities within this investment theme.
CUSIP (Cash/Reinvest)
Fee-Based CUSIP (Cash/Reinvest) Ticker Symbol
Ticketing Information
00776F660 / 678 00776F686 / 694
ASDAFX
Unit price at inception (per unit) Initial redemption price (per unit) Initial date of deposit Portfolio ending date Distribution frequency Est. net annual dist per unit (1st year)*
Est. net annual dist per unit (2nd year)*
Essential Information+
$10.000 $9.6550
11/22/2016 11/5/2018
Semi-Annual $0.0769 $0.0759
+As of 11/21/2016 and may vary thereafter. *The estimate is generally based on the estimate of dividends the trust will receive by annualizing the most recent dividend declared. The per unit estimate will vary with changes in fees and expenses, actual dividends received and with the sales of securities. The distributions are expected to decrease in the subsequent year as a result of organizational costs, creation and development fee, and deferred sales charges. There is no guarantee that the issuers of the securities included in the trust will declare distributions in the future or that, if declared, will remain at current levels or increase over time.
Sales Charges (Based on $10 unit price)++
Standard Accounts As a % of $1,000
invested Amount per
100 units
Initial sales fee Deferred sales fee Creation & Development fee Maximum sales fee
1.00% 2.45% 0.50% 3.95%
$10.00 $24.50
$5.00 $39.50
++The deferred sales fee is fixed at $0.245 per unit and is paid in three monthly installments beginning March 20, 2017. The creation & development fee is fixed at $0.05 per unit and is paid at the end of the initial offering period (anticipated to be three months). The initial and deferred sales fees may not apply to fee-based accounts. See the prospectus for more details about fee-based account eligibility requirements.
Fee-Based Accounts As a % of Fee-Based Public Offering Price
Amount per 100 units
Maximum sales fee 0.52% $5.00
Sales Charge Volume Discounts+++
Less than $50,000 $50,000 - $99,999 $100,000 - $249,999 $250,000 - $499,999 $500,000 - $999,999 $1,000,000 or more
3.95% 3.70% 3.45% 3.10% 2.95% 2.45%
+++Sales charges are applied 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 be issued. See the prospectus for details about sales charge discounts including all available discounts.
If you purchase: You will pay:
Morningstar Equity Style Box TM
Advisors Asset Management, Inc. (AAM) is a SEC registered investment advisor and member FINRA/SIPC.
Page 1 of 4
Why Now?
Geopolitical events continue to make headlines across the globe putting increasing focus on home-
land security. According to U.S. Military Budget figures, in the United States alone military spending
is currently greater than Medicare and the three largest departments combined: Health and Human
Services, Education, and Housing and Urban Development. The Aerospace/Defense Opportunities
Portfolio strives to take advantage of the longer-term leadership of this industry which may continue
to benefit from the heightened tensions surrounding the concerns of global terrorism and military
build-ups both in the U.S. and abroad.
Aerospace/Defense Opportunities Portfolio Series 2016-3, ADT 1741
Intelligent Investments. Independent Ideas.
Page 2 of 4
Ticker Symbol
Issue Name
Market Value Per Share*
Industrials (88.23%)
AIR AAR Corp $38.05
B Barnes Group Inc 45.62
BA Boeing Co/The 147.02
CIR CIRCOR International Inc 61.35
CUB Cubic Corp 44.20
CW Curtiss-Wright Corp 100.32
ESLT Elbit Systems Ltd 104.69
ESL Esterline Technologies Corp 84.85
GD General Dynamics Corp 168.43
GE General Electric Co 30.87
HEI HEICO Corp 75.79
HXL Hexcel Corp 49.24
HON Honeywell International Inc 112.21
HII Huntington Ingalls Industries Inc 176.20
KAMN Kaman Corp 48.89
KLXI KLX Inc 39.37
LLL L-3 Communications Holdings Inc 152.11
LMT Lockheed Martin Corp 263.42
MOG/A Moog Inc 69.90
NOC Northrop Grumman Corp 246.29
OA Orbital ATK Inc 85.73
RTN Raytheon Co 146.10
COL Rockwell Collins Inc 88.24
SPR Spirit AeroSystems Holdings Inc 55.91
TDY Teledyne Technologies Inc 121.71
TXT Textron Inc 44.56
TDG TransDigm Group Inc 251.38
TGI Triumph Group Inc 27.30
UTX United Technologies Corp 106.85
WWD Woodward Inc 67.70
Information Technology (8.85%)
CSC Computer Sciences Corp 61.77
FLIR FLIR Systems Inc 35.45
HRS Harris Corp 103.90
Materials (2.92%)
BLL Ball Corporation 76.10
% of Portfolio
Industrials 88.23%
Capital Goods 88.23%
Information Technology 8.85%
Software & Services 2.95%
Technology/Hardware 5.90%
Materials 2.92%
Materials 2.92%
Sector/Industry Group Breakdown*
Source: Global Industrial Classification Standard (GICS)
Source: Morningstar *As of 11/21/2016 and may vary thereafter. Breakdowns are based on the sources shown and may differ from any category definitions used in selecting the trust portfolio.
Holdings Style Summary *
Portfolio Holdings (as of date of deposit)
% of Portfolio
Large-Cap Value 8.91%
Large-Cap Blend 14.79%
Mid-Cap Growth 14.66%
Mid-Cap Value 14.71%
Mid-Cap Blend 14.71%
Small-Cap Growth 2.93%
Small-Cap Value 11.64%
Small-Cap Blend 14.71%
N/A 2.94%
Aerospace/Defense Opportunities Portfolio Series 2016-3, ADT 1741
Intelligent Investments. Independent Ideas.
Page 3 of 4
The United States is expected to remain the world's top exporter of military weapons and technology in 2016, controlling more than one-third of military
spending for defense technology sent to outside nations, according to analysts at market researcher IHS Inc. in Englewood, Colorado. The global defense
trade market is small compared with internal defense spending among the world's most developed nations. The U.S. Congress, for example, is formulating a
fiscal 2017 Pentagon budget that may exceed $600 billion. 1
The importance of the aerospace and defense industry stems from the strategic role it plays in our country’s security. As threats turn into ever new shapes,
the defense capabilities of a country need to morph accordingly to contain them. A politically unstable world has led to various nations stepping up their
defense capabilities. The direct beneficiaries of a volatile geo-economy are undoubtedly the aerospace and defense players. Countries allied to U.S. policy
are spending substantially on sophisticated artillery to wage the war on terror and sectarian forces. Moreover, the aerospace and defense industry has gained
from fleet renewals at airlines worldwide. Demand for more fuel-efficient aircraft, a growing international market and increasing application of unmanned
aircraft in warfare today have driven up sales in this sector. On top of this, the latest budget agreement is a net positive for defense players. 2
1 Military & Aerospace, U.S. leads global expert military spending for defense technology, followed by Russia and France, June 15, 2016
The Peroni MethodTM is a proprietary form of technical analysis used by Eugene E. Peroni, Jr. of Peroni Portfolio Advisors, Inc. which uses a bottom-up approach in
selecting stocks for certain AAM sector unit investment trusts. The foundation of this methodology is the basic understanding that every stock has its own
“fingerprint” in the market place. Mr. Peroni tracks hundreds of stocks on a daily basis, identifying leading stocks and sectors in the market by analyzing price
movements, money flow trends, and relative strength characteristics. His studies include the examination of a stock’s price architecture using hand-drawn point and
figure charts which have been part of the methodology for over half a century.
This hands-on research approach may be an attractive investment alternative to traditional fundamental analysis in that it considers a stock’s individual technical
merits along with economic, monetary and geopolitical factors. The Peroni MethodTM may uncover emerging trends that could correspond to future stock
performance. It has endured volatile markets while providing investors with uncommon insights and unique investment opportunities.
Aerospace/Defense Opportunities Portfolio Series 2016-3, ADT 1741
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. 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. Consult your tax advisor for possible tax consequences associated with this investment. An investment in this unmanaged unit investment trust should be made with an understanding of the risks associated therewith that includes, but is not limited to:
Securities offered through your financial professional. Not FDIC Insured. Not Bank Guaranteed. May Lose Value. For informational purposes only and not a recommendation to purchase or sell any security.