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Balanced Portfolio, Series 2020-3

Cohen & Steers Equity Dividend & IncomeClosed-End Portfolio, Series 2020-3

Dividend Strength Portfolio, Series 2020-3 —A Hartford Investment Management Company (“HIMCO”) Portfolio

Financial Opportunities Portfolio, Series 2020-3

Ubiquitous Strategy Portfolio, Series 2020-3

(Advisors Disciplined Trust 2021)

Prospectus

July 7, 2020

As with any investment, the Securities andExchange Commission has not approved ordisapproved of these securities or passedupon the adequacy or accuracy of thisprospectus. Any contrary representation isa criminal offense.

BALANCED PORTFOLIO

INVESTMENT OBJECTIVE

The trust seeks to provide high currentincome with capital appreciation as a secondaryobjective. There is no assurance the trust willachieve its objective.

PRINCIPAL INVESTMENT STRATEGY

The trust invests in a diversified portfolioconsisting of two equally-weighted components:

• High 50T Dividend Strategy—a specializeddividend-oriented strategy that seeks toprovide above average total return.

• Tactical Income Closed-End Strategy—common stocks of closed-end investmentcompanies (“closed-end funds”) seeking highcurrent income with capital appreciationpotential.

We* selected these components in an effortto provide an enhanced total return while reduc-ing overall portfolio volatility throughdiversification of assets and investment strategies.We selected the securities within each of thesecomponents as described below. By combiningthese investment strategies, we sought to create aportfolio balanced between stocks and otherincome-producing securities, such as corporatebonds, government bonds, corporate loans, con-vertible securities, preferred securities and equitysecurities. We currently offer separate unit invest-ment trusts that invest according to the same orsimilar investment strategies as the componentsdescribed above. The components, portfolio secu-rities and structure of the trust offered in thisprospectus may differ in certain respects fromthose of other trusts we may be offering that usesimilar investment strategies.

The following describes the two componentsof the trust’s portfolio. The initial trust portfolio

seeks to invest in each component in approxi-mately equal weightings as of the trust’sinception and the weightings will vary thereafterin accordance with fluctuations in stock prices.

High 50T Dividend Strategy. This compo-nent invests in stocks selected using a specializeddividend-oriented strategy that seeks to provideabove average total return. We selected this com-ponent using the following strategy:

• We begin with the companies included inthe New York Stock Exchange CompositeIndex, Nasdaq Composite Index and NYSEMKT Composite Index.

• Stocks are eliminated if at the time ofselection:

• the company’s stock marketcapitalization is $1 billion or less,

• the company’s headquarters is locatedoutside the United States,

• the stocks are securities of limitedpartnerships, exchange-traded funds,investment companies or shares ofbeneficial interest to the extent suchsecurities are not otherwise excludedfrom the composition of the indexes.

• Of the remaining stocks we select the fivesecurities with the highest dividend yields asof June 30, 2020 from the remainingsecurities of companies in each of the nineGlobal Industry Classification Standard(GICST) sectors other than the Financialsand Real Estate sectors and the five securitieswith the highest dividend yields as ofJune 30, 2020 from the remaining securitiesof companies in the Financials and RealEstate GICST sectors combined (for a totalof 50 securities). The trust invests in these50 stocks.

* “AAM,” “we” and related terms mean Advisors Asset Management,Inc., the trust sponsor, unless the context clearly suggests otherwise.

2 Investment Summary

The eleven industry sectors used in the strat-egy are the GICST sectors published by S&PDow Jones Indices and MSCI Inc. Please notethat we applied the strategy to select the portfo-lio at a particular time. If we create additionalunits of the trust after the trust’s inception date,the trust will purchase the securities originallyselected by applying the strategy. This is trueeven if a later application of the strategy wouldhave resulted in the selection of different securi-ties. In addition, companies which, based onpublicly available information as of two businessdays prior to the date of this prospectus, are thetarget of an announced business acquisitionwhich we expect will happen within six monthsof the date of this prospectus have been excludedfrom the universe of securities from which thetrust’s securities are selected.

The trust’s strategy begins with the NewYork Stock Exchange (NYSE) Composite Index,the Nasdaq Composite Index and the NYSEMKT Composite Index. The NYSE CompositeIndex is designed to measure the performance ofall common stocks listed on the NYSE, includ-ing ADRs, real estate investment trusts (REITs)and tracking stocks. All closed-end funds,exchange-traded funds, limited partnerships andderivatives are excluded from the index. TheNasdaq Composite Index measures all domesticand international based common type stockstraded on The Nasdaq Stock Market. To be eli-gible for inclusion in this index the security’sU.S. listing must be exclusively on The NasdaqStock Market (with certain exceptions), and havea security type of ADRs, common stock, limitedpartnership interests, ordinary shares, REITs,shares of beneficial interest or tracking stocks.Security types not included in this index areclosed-end funds, convertible debentures,exchange-traded funds, preferred stocks, rights,warrants, units and other derivative securities.The NYSE MKT Composite Index is an indexrepresenting the aggregate value of the commonshares or ADRs of all NYSE MKT-listed compa-nies, REITs, master limited partnerships andclosed-end investment companies. The publishers

of the indexes are not affiliated with us and havenot participated in creating the trust or selectingthe securities for the trust, nor have theyreviewed or approved of any of the informationcontained herein.

Tactical Income Closed-End Strategy. Thiscomponent seeks to provide high current incomewith capital appreciation potential by investingin a portfolio primarily consisting of commonstock of closed-end funds. The underlying fundsmay invest in a variety of income-producingsecurities issued by various types of foreignand/or U.S. issuers. Among other securities, thesesecurities may include corporate bonds, govern-ment bonds, corporate loans, convertiblesecurities, preferred securities and equity securi-ties. These securities may be rated investmentgrade, below investment grade or unrated bymajor security rating agencies.

In selecting closed-end funds, we consideredfactors such as historical returns, income poten-tial, potential future growth, portfoliodiversification and advisor experience. We use adisciplined investment methodology to select thefunds for inclusion in this component. We beginby constructing a universe of funds that have astated investment objective in line with this com-ponent’s investment objective and that the fundadvisor appears to be adhering to. From this uni-verse we select the final securities by utilizing amulti-factor approach based on the followingfactors:

• Premium/Discount—We favor funds that aretrading at a discount relative to their peersand relative to their historic average.

• Dividend—We favor funds that have ahistory of a consistent and competitivedividend and that appear to possess theability to keep the dividend level intact.

• Performance—We favor funds that have anabove average history of performance basedon net asset value when compared to theirpeers and a relevant benchmark.

Investment Summary 3

Approximately 10.00% of the portfolio con-sists of funds classified as “non-diversified” underthe Investment Company Act of 1940. Thesefunds have the ability to invest more than 5% oftheir assets in securities of a single issuer whichcould reduce diversification.

PRINCIPAL RISKS

As with all investments, you can lose moneyby investing in this trust. The trust also mightnot perform as well as you expect. This can hap-pen for reasons such as these:

• Security prices will fluctuate. The value ofyour investment may fall over time. Thepotential economic impacts of the novelform of coronavirus disease first detected in2019 (“COVID-19”), which spread rapidlyaround the globe which led the WorldHealth Organization to declare the COVID-19 outbreak a pandemic in March 2020, arenot fully known. The COVID-19 pandemic,or any future public health crisis, areimpossible to predict and could result inadverse market conditions which maynegatively impact the performance of thesecurities in the portfolio and the trust.

• An issuer may be unwilling or unable todeclare dividends in the future or mayreduce the level of dividends declared. Thismay reduce the level of income the trustreceives which would reduce your incomeand cause the value of your units to fall. TheCOVID-19 pandemic has resulted in adecline in economic activity and causedmany companies to reduce the level ofdividends declared and many companies maybe unwilling or unable to declare dividendsfor the foreseeable future. It is also possiblethat current or future government aidprograms could limit companies from payingdividends as a condition to receivinggovernment aid or discourage companiesfrom doing so.

• An issuer may be unable to make interestand/or principal payments in the future.

This may reduce the level of income thetrust receives which would reduce yourincome and cause the value of your units tofall. The COVID-19 pandemic has resultedin a decline in economic activity whichcould negatively impact the ability ofborrowers to make principal or interestpayment on securities, when due.

• The financial condition of an issuer mayworsen or its credit ratings may drop,resulting in a reduction in the value of yourunits. This may occur at any point in time,including during the primary offering period.

• The value of certain securities will generallyfall if interest rates, in general, rise. No onecan predict whether interest rates will rise orfall in the future.

• The trust invests in shares of closed-endfunds. You should understand theinformation about closed-end funds in thesection titled “Understanding YourInvestment—Closed-End Funds” before youinvest. In particular, shares of these fundstend to trade at a discount from their netasset value and are subject to risks related tofactors such as the manager’s ability toachieve a fund’s objective, market conditionsaffecting a fund’s investments and use ofleverage. The trust and the underlying fundshave management and operating expenses.You will bear not only your share of thetrust’s expenses, but also the expenses of theunderlying funds. By investing in otherfunds, the trust incurs greater expenses thanyou would incur if you invested directly inthe funds.

• The trust and/or certain funds held by yourtrust may invest in securities of small andmid-size companies. These securities areoften more volatile and have lower tradingvolumes than securities of larger companies.Small and mid-size companies may havelimited products or financial resources,management inexperience and less publiclyavailable information.


• We do not actively manage the portfolio.While the closed-end funds have managedportfolios, except in limited circumstances,the trust will hold, and continue to buy,shares of the same securities even if theirmarket value declines.


WHO SHOULD INVEST

You should consider this investment if you want:

• to own a defined portfolio of securities selectedbased on two distinct investment strategies.

• to diversify your overall portfolio withinvestments in various types of securities.

• the potential to receive income and capitalappreciation.

You should not consider this investment if you:

• are uncomfortable with the risks of anunmanaged investment in the securities held bythe trust.

• are uncomfortable with the trust’s strategies.

• seek aggressive growth without current income.

• seek capital preservation or capital appreciationas a primary objective.

ESSENTIAL INFORMATION

Unit price at inception $10.0000

Inception date July 7, 2020Termination date July 7, 2022

Distribution dates 25th day of each monthRecord dates 10th day of each month

CUSIP NumbersStandard AccountsCash distributions 00780N105Reinvest distributions 00780N113

Fee Based AccountsCash distributions 00780N121Reinvest distributions 00780N139

Ticker Symbol BALBWX

Minimum investment $1,000/100 units

Tax Structure Regulated Investment Company

FEES AND EXPENSES

The amounts below are estimates of the direct andindirect expenses that you may incur based on a $10unit price. Actual expenses may vary.

Sales Fee

As a %of $1,000Invested

Amountper 100Units

Initial sales fee 0.00% $0.00Deferred sales fee 2.25 22.50Creation & development fee 0.50 5.00

Maximum sales fee 2.75% $27.50

Organization Costs 0.49% $4.90

Annualoperating expenses

As a %of NetAssets

Amountper 100Units

Trustee fee & expenses 0.16% $1.52Supervisory, evaluation

and administration fees 0.10 1.00

Closed-end fund expenses 0.98 9.47

Total 1.24% $11.99

The initial sales fee is the difference between the totalsales fee (maximum of 2.75% of the unit offering price)and the sum of the remaining deferred sales fee and thetotal creation and development fee. The deferred sales fee isfixed at $0.225 per unit and is paid in three monthlyinstallments beginning October 20, 2020. The creation anddevelopment fee is fixed at $0.05 per unit and is paid atthe end of the initial offering period (anticipated to beapproximately three months). When the public offeringprice per unit is less than or equal to $10, you will not payan initial sales fee. When the public offering price per unitis greater than $10 per unit, you will pay an initial sales fee.The trust will indirectly bear the management and operat-ing expenses of the underlying closed-end funds. While thetrust will not pay these expenses directly out of its assets,these expenses are shown in the trust’s annual operatingexpenses above to illustrate the impact of these expenses.

EXAMPLE

This example helps you compare the cost of this trustwith other unit trusts and mutual funds. In the example weassume that the expenses do not change and that the trust’sannual return is 5%. Your actual returns and expenses willvary. Based on these assumptions, you would pay theseexpenses for every $10,000 you invest in the trust:

1 year $4442 years (approximate life of trust) $568

These amounts are the same regardless of whetheryou sell your investment at the end of a period or con-tinue to hold your investment.


Numberof Shares

TickerSymbol Issuer(1)

Percentage ofAggregate Offering

Price

MarketValue perShare(1)

Cost ofSecuritiesto Trust(2)

COMMON STOCKS — 50.00%

Communication Services — 5.00%49 T AT&T, Inc. 1.00% $30.49 $1,494149 CTL CenturyLink, Inc. 1.00 9.98 1,48786 IPG The Interpublic Group of Companies, Inc. 1.00 17.36 1,49327 OMC Omnicom Group, Inc. 1.00 55.26 1,49227 VZ Verizon Communications, Inc. 1.00 55.24 1,491

Consumer Discretionary — 5.02%103 HRB H&R Block, Inc. 1.00 14.41 1,484131 HBI Hanesbrands, Inc. 1.00 11.38 1,49143 LEG Leggett & Platt, Inc. 1.02 35.21 1,51492 NWL Newell Brands, Inc. 0.99 16.00 1,47251 WYND Wyndham Destinations, Inc. 1.01 29.57 1,508

Consumer Staples — 5.00%38 MO Altria Group, Inc. 1.01 39.60 1,50560 BGS B&G Foods, Inc. 1.00 24.85 1,49121 PM Philip Morris International, Inc. 1.00 70.60 1,48335 UVV Universal Corporation 0.99 42.05 1,472155 VGR Vector Group Limited 1.00 9.60 1,488

Energy — 5.03%274 AM Antero Midstream Corporation 1.01 5.48 1,50179 CVI CVR Energy, Inc. 1.01 19.04 1,50479 HP Helmerich & Payne, Inc. 1.02 19.13 1,51152 OKE ONEOK, Inc. 0.99 28.29 1,47177 WMB The Williams Companies, Inc. 1.00 19.31 1,487

Financials — 2.98%231 NLY Annaly Capital Management, Inc. 1.00 6.43 1,485156 ARI Apollo Commercial Real Estate

Finance, Inc.0.99 9.48 1,479

159 CIM Chimera Investment Corporation 0.99 9.30 1,479

Health Care — 5.01%15 ABBV AbbVie, Inc. 1.00 99.01 1,48529 CAH Cardinal Health, Inc. 1.01 51.74 1,50019 GILD Gilead Sciences, Inc. 0.98 76.76 1,45866 PDCO Patterson Companies, Inc. 1.02 23.00 1,51843 PFE Pfizer, Inc. 1.00 34.51 1,484


(Continued)

Balanced Portfolio, Series 2020-3(Advisors Disciplined Trust 2021)PortfolioAs of the trust inception date, July 7, 2020

Numberof Shares



Price



COMMON STOCKS — (CONTINUED)

Industrials — 4.98%51 HNI HNI Corporation 1.00% $29.22 $1,49020 MSM MSC Industrial Direct Company, Inc. 1.01 74.87 1,49719 PCAR PACCAR, Inc. 0.98 77.16 1,46637 R Ryder System, Inc. 0.99 39.75 1,471136 SCS Steelcase, Inc. 1.00 10.96 1,490

Information Technology — 4.97%155 HPE Hewlett Packard Enterprise Company 1.00 9.59 1,48612 IBM International Business Machines

Corporation0.97 120.19 1,442

33 NTAP NetApp, Inc. 1.00 45.05 1,48794 XRX Xerox Holdings Corporation 1.00 15.89 1,494100 XPER Xperi Holding Corporation 1.00 14.94 1,494

Materials — 5.01%93 CC The Chemours Company 1.02 16.26 1,51235 DOW Dow, Inc. 1.00 42.45 1,48636 GEF/B Greif, Inc. 0.98 40.59 1,461146 KRO Kronos Worldwide, Inc. 1.01 10.32 1,507131 OLN Olin Corporation 1.00 11.38 1,491

Real Estate — 1.99%131 GEO The GEO Group, Inc. 0.99 11.28 1,478174 MAC The Macerich Company 1.00 8.55 1,488

Utilities — 5.01%76 CNP CenterPoint Energy, Inc. 1.00 19.60 1,49019 DUK Duke Energy Corporation 1.02 79.81 1,51649 OGE OGE Energy Corporation 1.01 30.52 1,49557 PPL PPL Corporation 0.99 25.88 1,47528 SO The Southern Company 0.99 52.61 1,473

CLOSED-END FUNDS — 50.00%379 AOD Aberdeen Total Dynamic Dividend Fund 2.00 7.85 2,975123 ACV AllianzGI Diversified Income &

Convertible Fund1.99 24.13 2,968

262 NFJ AllianzGI Dividend Interest & PremiumStrategy Fund

2.00 11.38 2,982

220 BTZ BlackRock Credit Allocation Income Trust 2.00 13.52 2,974418 BGR BlackRock Energy and Resources Trust 1.99 7.10 2,968210 BLW BlackRock Limited Duration Income Trust 2.01 14.23 2,988


(Continued)

Balanced Portfolio, Series 2020-3(Advisors Disciplined Trust 2021)Portfolio (continued)As of the trust inception date, July 7, 2020

Numberof Shares



Price



CLOSED-END FUNDS — (CONTINUED)136 CCD Calamos Dynamic Convertible &

Income Fund2.01% $21.94 $2,984

394 CHW Calamos Global Dynamic Income Fund 2.00 7.54 2,971488 IGR CBRE Clarion Global Real Estate

Income Fund1.99 6.08 2,967

329 GLO Clough Global Opportunities Fund 1.99 9.02 2,968152 RNP Cohen & Steers REIT and Preferred and

Income Fund, Inc.2.00 19.54 2,970

205 ETG Eaton Vance Tax-Advantaged GlobalDividend Income Fund

2.01 14.59 2,991

140 ETO Eaton Vance Tax-Advantaged GlobalDividend Opportunities Fund

2.00 21.24 2,974

282 FEN First Trust Energy Income andGrowth Fund

2.00 10.55 2,975

201 FFA First Trust Enhanced Equity Income Fund 2.00 14.83 2,981865 GGN GAMCO Global Gold Natural Resources

& Income Trust1.99 3.43 2,967

453 ASG Liberty All Star Growth Fund, Inc. 2.00 6.57 2,976518 MCN Madison Covered Call & Equity

Strategy Fund1.99 5.72 2,963

125 QQQX Nuveen NASDAQ 100 DynamicOverwrite Fund

2.02 23.99 2,999

229 GHY PGIM Global High Yield Fund, Inc. 2.00 12.99 2,975221 ISD PGIM High Yield Bond Fund, Inc. 2.00 13.44 2,970407 RMT Royce Micro-Cap Trust, Inc. 1.99 7.29 2,967236 RVT Royce Value Trust, Inc. 2.01 12.64 2,983162 HQL Tekla Life Sciences Investors 2.00 18.35 2,973

1,238 IRR Voya Natural Resources EquityIncome Fund

2.01 2.41 2,984

100.00% $148,809Notes to Portfolio

(1) Securities are represented by contracts to purchase such securities. The value of each security is based on the most recent closing sale price of each securityas of the closeof regular tradingon theNewYorkStockExchangeon the businessdayprior to the trust’s inception date. In accordancewithAccountingStandardsCodification 820, “Fair ValueMeasurements”, the trust’s investments are classified as Level 1, which refers to security prices determined using quoted prices inactive markets for identical securities.

(2) The cost of the securities to the sponsor and the sponsor’s profit or (loss) (which is the difference between the cost of the securities to the sponsor and the costof the securities to the trust) are $148,809 and $0, respectively.

(3) This is a security issued by a foreign company.


Balanced Portfolio, Series 2020-3(Advisors Disciplined Trust 2021)Portfolio (continued)As of the trust inception date, July 7, 2020

COHEN & STEERS EQUITY DIVIDEND & INCOMECLOSED-END PORTFOLIO


The trust seeks to provide high current divi-dend income with capital appreciation as asecondary objective. There is no assurance thetrust will achieve its objective.


The trust seeks to provide high current divi-dend income with capital appreciation potential byinvesting in a portfolio primarily consisting of com-mon stock of closed-end investment companies(known as “closed-end funds”). The underlyingfunds may invest in a variety of equity and/orincome-producing securities issued by various typesof foreign and/or U.S. issuers. These funds typicallyinvest primarily in equity securities but could alsoinvest in various other securities, such as preferredsecurities, convertible securities, high yield bondsand other debt securities.

In selecting these closed-end funds, Cohen &Steers Capital Management, Inc. (the “PortfolioConsultant”) considered factors such as historicalreturns, income potential, potential future growth,portfolio diversification and advisor experience. ThePortfolio Consultant uses a disciplined investmentmethodology to select the funds for inclusion inthe trust. The Portfolio Consultant begins byconstructing a universe of funds that have astated investment objective in line with the trust’sinvestment objective and that the fund advisorappears to be adhering to. From this universe thePortfolio Consultant selects the final securities byutilizing a multi-factor approach based on thefollowing factors:

• Premium/Discount—It seeks funds that aretrading at a valuation discount to either theirpeers, sector or historic average.

• Dividend—It seeks funds that have a historyof consistent and/or competitive relativedividends and that appear to possess the

ability to keep the current dividend levelintact.

• Performance—It seeks funds that have ahistory of performance on either marketprice or net asset value that make themrelatively attractive when compared to theirpeers or relevant benchmark.

Approximately 9.98% of the portfolio con-sists of funds classified as “non-diversified” underthe Investment Company Act of 1940. Thesefunds have the ability to invest more than 5% oftheir assets in securities of a single issuer whichcould reduce diversification. Under normal cir-cumstances, the trust will invest at least 80% ofits assets in closed-end investment companies.

PRINCIPAL RISKS


• Security prices will fluctuate. The value ofyour investment may fall over time. Thepotential economic impacts of the novelform of coronavirus disease first detected in2019 (“COVID-19”), which spread rapidlyaround the globe which led the WorldHealth Organization to declare the COVID-19 outbreak a pandemic in March 2020, arenot fully known. The COVID-19 pandemic,or any future public health crisis, areimpossible to predict and could result inadverse market conditions which maynegatively impact the performance of thesecurities in the portfolio and the trust.

• The value of the securities in the closed-endfunds will generally fall if interest rates, ingeneral, rise. No one can predict whetherinterest rates will rise or fall in the future.

• An issuer may be unwilling or unable todeclare dividends in the future or mayreduce the level of dividends declared. Thismay reduce the level of income the trustreceives which would reduce your incomeand cause the value of your units to fall. The


COVID-19 pandemic has resulted in adecline in economic activity and causedmany companies to reduce the level ofdividends declared and many companies maybe unwilling or unable to declare dividendsfor the foreseeable future. It is also possiblethat current or future government aidprograms could limit companies from payingdividends as a condition to receivinggovernment aid or discourage companiesfrom doing so.

• An issuer may be unable to make interestand/or principal payments in the future.This may reduce the level of income thetrust receives which would reduce yourincome and cause the value of your units tofall. The COVID-19 pandemic has resultedin a decline in economic activity whichcould negatively impact the ability ofborrowers to make principal or interestpayment on securities, when due.


• The trust invests in shares of closed-endfunds. You should understand the section titled“Closed-End Funds” before you invest. Inparticular, shares of these funds tend to trade ata discount from their net asset value and aresubject to risks related to factors such as themanager’s ability to achieve a fund’s objective,market conditions affecting a fund’sinvestments and use of leverage. The trust andthe underlying funds have management andoperating expenses. You will bear not only yourshare of the trust’s expenses, but also theexpenses of the underlying funds. By investingin other funds, the trust incurs greater expensesthan you would incur if you invested directlyin the funds.

• Securities of foreign issuers held by theunderlying funds in the trust present risksbeyond those of U.S. issuers. These risksmay include market and political factors

related to the issuer’s foreign market,international trade conditions, the global andcountry-specific political environment, lessregulation, smaller or less liquid markets,increased volatility, differing accountingpractices and changes in the value of foreigncurrencies.

• We* do not actively manage the portfolio.While the closed-end funds have managedportfolios, except in limited circumstances,the trust will hold, and continue to buy,shares of the same funds even if their marketvalue declines.

PORTFOLIO CONSULTANT

The Portfolio Consultant, Cohen & SteersCapital Management, Inc., is a registered invest-ment adviser. Founded in 1986, the PortfolioConsultant is a global investment manager spe-cializing in liquid real assets, including real estatesecurities, listed infrastructure, commodities andnatural resource equities, as well as preferredsecurities and other income solutions. As ofMarch 31, 2020, the Portfolio Consultant had$57.4 billion in assets under management. ThePortfolio Consultant manages separate accountportfolios for institutional investors, includingsome of the world’s largest pension funds andendowments. In addition, the Portfolio Consul-tant manages open- and closed-end funds forboth retail and institutional investors. The Port-folio Consultant is among the largest real estateinvestment trust (“REIT”) managers in the U.S.and employs a significant research and tradingstaff. Many investors have come to view thePortfolio Consultant as an important source forincome-oriented investment products.

The Portfolio Consultant is not an affiliateof the sponsor. The Portfolio Consultant makesno representations that the portfolio will achievethe investment objectives or will be profitable orsuitable for any particular potential investor. Thesponsor did not select the securities for the trust.



The Portfolio Consultant may use the list ofsecurities in its independent capacity as aninvestment adviser and distribute this informa-tion to various individuals and entities. ThePortfolio Consultant may recommend to otherclients or otherwise effect transactions in thesecurities held by the trust. This may have anadverse effect on the prices of the securities. Thisalso may have an impact on the price the trustpays for the securities and the price receivedupon unit redemptions or liquidation of thesecurities. The Portfolio Consultant also mayissue reports and makes recommendations onsecurities, which may include the securities inthe trust.

Neither the Portfolio Consultant nor thesponsor manages the trust. Opinions expressedby the Portfolio Consultant are not necessarilythose of the sponsor, and may not actually cometo pass. The trust will pay the Portfolio Consul-tant a fee for selecting the trust’s portfolio. Thetrust will also pay a license fee for the use ofcertain service marks, trademarks, tradenames and/or other property of the PortfolioConsultant.


WHO SHOULD INVEST


• to own securities representing interests inmanaged funds that invest in equity and/orincome producing securities of foreign andU.S. issuers.

• the potential to receive monthly distributionsof dividends and income.


• are uncomfortable with the risks of anunmanaged investment in closed-end fundsthat invest in equity and/or income producingsecurities of foreign and U.S. issuers.

• seek capital preservation as a primary objective.







Ticker Symbol EDIANX



FEES AND EXPENSES


Sales Fee


Amountper 100Units





As a %of NetAssets

Amountper 100Units

Trustee fee & expenses 0.28% $2.75Supervisory, evaluation and

administration fees 0.10 1.00

Closed-end fund expenses 1.63 15.77Total 2.01% $19.52

The initial sales fee is the difference between the totalsales fee (maximum of 2.75% of the unit offering price)and the sum of the remaining deferred sales fee and thetotal creation and development fee. The deferred sales fee isfixed at $0.225 per unit and is paid in three monthlyinstallments beginning January 20, 2021. The creation anddevelopment fee is fixed at $0.05 per unit and is paid atthe end of the initial offering period (anticipated to beapproximately six months). When the public offering priceper unit is less than or equal to $10, you will not pay aninitial sales fee. When the public offering price per unit isgreater than $10 per unit, you will pay an initial sales fee.The trust will indirectly bear the management and operat-ing expenses of the underlying closed-end funds. While thetrust will not pay these expenses directly out of its assets,these expenses are shown in the trust’s annual operatingexpenses above to illustrate the impact of these expenses.

EXAMPLE

This example helps you compare the cost of this trustwith other unit trusts and mutual funds. In the example weassume that the expenses do not change and that the trust’sannual return is 5%. Your actual returns and expenses willvary. Based on these assumptions, you would pay theseexpenses for every $10,000 you invest in the trust:




Numberof Shares



Price



CLOSED-END FUNDS — 100.00%947 AOD Aberdeen Total Dynamic Dividend Fund 4.99% $7.85 $7,434486 ADX Adams Diversified Equity Fund, Inc. 4.99 15.29 7,431309 ACV AllianzGI Diversified Income &

Convertible Fund5.01 24.13 7,456

326 NIE AllianzGI Equity & ConvertibleIncome Fund

5.02 22.90 7,465

507 CII BlackRock Enhanced Capital andIncome Fund, Inc.

5.02 14.75 7,478

346 BMEZ Blackrock Health Sciences Trust II 4.98 21.43 7,415682 CHI Calamos Convertible Opportunities and

Income Fund4.98 10.87 7,413

1,221 IGR CBRE Clarion Global Real EstateIncome Fund

4.99 6.08 7,424

512 ETG Eaton Vance Tax-Advantaged GlobalDividend Income Fund

5.02 14.59 7,470

683 ETY Eaton Vance Tax-Managed DiversifiedEquity Income Fund

5.00 10.90 7,445

995 EXG Eaton Vance Tax-Managed GlobalDiversified Equity Income Fund

5.00 7.48 7,443

418 GDV The Gabelli Dividend & Income Trust 5.00 17.79 7,436228 GAM General American Investors

Company, Inc.4.98 32.49 7,408

385 HTD John Hancock Tax-Advantaged DividendIncome Fund

4.94 19.10 7,353

410 MGU Macquarie Global Infrastructure TotalReturn Fund, Inc.

5.01 18.20 7,462

604 JCE Nuveen Core Equity Alpha Fund 5.00 12.33 7,447968 JRS Nuveen Real Estate Income Fund 5.01 7.70 7,454666 BXMX Nuveen S&P 500 Buy-Write Income Fund 5.01 11.19 7,453406 HQL Tekla Life Sciences Investors 5.00 18.35 7,450918 IGA Voya Global Advantage and Premium

Opportunity Fund5.05 8.18 7,509





Cohen & Steers Equity Dividend & Income Closed-End Portfolio, Series 2020-3(Advisors Disciplined Trust 2021)PortfolioAs of the trust inception date, July 7, 2020

DIVIDEND STRENGTH PORTFOLIO


The trust seeks to provide above average totalreturn primarily through dividend income. There isno assurance the trust will achieve its objective.


The trust seeks to achieve its objective byinvesting in a portfolio of U.S. exchange-listedcommon stocks of companies selected by HartfordInvestment Management Company (“HIMCO”).HIMCO, the portfolio consultant to the trust,selected the portfolio from the securities in theRussell 1000® Index. In selecting the securities forinclusion in the trust’s portfolio, HIMCO soughtto identify high quality stocks with above averagedividend yields and the ability to increase dividendpayments. HIMCO selected these securities using astructured quantitative approach combined withfundamental oversight. HIMCO’s quantitativeapproach sought to identify companies within eachindustry sector possessing attractive fundamentalssuch as strong balance sheets, high quality earningsand attractive growth prospects. HIMCO reviewedfinal selections for the trust’s portfolio to assess theimpact of any recent events (including managementissues, legal proceedings and future mergers oracquisitions) on each stock’s prospects.

PRINCIPAL RISKS


• Security prices will fluctuate. The value ofyour investment may fall over time. Thepotential economic impacts of the novelform of coronavirus disease first detected in2019 (“COVID-19”), which spread rapidlyaround the globe which led the WorldHealth Organization to declare the COVID-


19 outbreak a pandemic in March 2020, arenot fully known. The COVID-19 pandemic,or any future public health crisis, areimpossible to predict and could result inadverse market conditions which maynegatively impact the performance of thesecurities in the portfolio and the trust.

• An issuer may be unwilling or unable todeclare dividends in the future, or mayreduce the level of dividends declared. Thismay result in a reduction in the value ofyour units. The COVID-19 pandemic hasresulted in a decline in economic activityand caused many companies to reduce thelevel of dividends declared and manycompanies may be unwilling or unable todeclare dividends for the foreseeable future.It is also possible that current or futuregovernment aid programs could limitcompanies from paying dividends as acondition to receiving government aid ordiscourage companies from doing so.

• The financial condition of an issuer mayworsen or its credit ratings may drop,resulting in a reduction in the value of yourunits. This may occur at any point in time,including during the initial offering period.

• The trust is concentrated in securities issuedby information technology companies.Negative developments impacting companies inthis sector will affect the value of yourinvestment more than would be the case in amore diversified investment.

• The trust invests in securities selected byHIMCO. In the event that HIMCOincorrectly assesses an issuer’s prospects forgrowth or if HIMCO’s judgment about howother investors will value an issuer’s growth iswrong, then the price of an issuer’s stock maydecrease or not increase to the level anticipated.

• We* do not actively manage the portfolio.Except in limited circumstances, the trust willhold, and continue to buy, shares of the samesecurities even if their market value declines.



HIMCO, Hartford Investment ManagementCompany, is a registered investment adviser.

HIMCO is not an affiliate of the sponsor.HIMCO selected a list of securities to beincluded in the portfolio based on the criteriaprovided by the sponsor. HIMCO makes no rep-resentations that the portfolio will achieve theinvestment objectives or will be profitable orsuitable for any particular potential investor. Thesponsor did not select the securities for the trust.

HIMCO may use the list of securities in itsindependent capacity as an investment adviserand distribute this information to various indi-viduals and entities. HIMCO may recommendto other clients or otherwise effect transactions inthe securities held by the trust. This may have anadverse effect on the prices of the securities. Thisalso may have an impact on the price the trustpays for the securities and the price receivedupon unit redemptions or liquidation of thesecurities. HIMCO may also issue reports andmake recommendations on securities, which mayinclude the securities in the trust.

Neither HIMCO nor the sponsor managesthe trust. Opinions expressed by HIMCO arenot necessarily those of the sponsor, and may notactually prove correct. The trust will payHIMCO a fee for selecting the trust’s portfolio.The trust will also pay a license fee for the use ofcertain service marks, trademarks, trade namesand/or other property of HIMCO.


WHO SHOULD INVEST


• to own a defined portfolio of stocks of U.S.exchange-listed companies.

• the potential for above average total returnprimarily through dividend income.


• are uncomfortable with the risks of anunmanaged investment in common stocks.

• are uncomfortable investing in stocks of U.S.exchange-listed companies.

• are uncomfortable with the trust’s strategy.

• seek aggressive growth without current income.

• seek capital preservation.







Ticker Symbol DSPAEX



FEES AND EXPENSES

The amounts below are estimates of the direct and indi-rect expenses that you may incur based on a $10 unit price.Actual expenses may vary.

Sales Fee


Amountper 100Units





As a %of NetAssets

Amountper 100Units

Trustee fee & expenses 0.21% $2.05Supervisory, evaluation

and administration fees 0.11 1.00

Total 0.32% $3.05

The initial sales fee is the difference between thetotal sales fee (maximum of 2.75% of the unit offeringprice) and the sum of the remaining deferred sales feeand the total creation and development fee. The deferredsales fee is fixed at $0.225 per unit and is paid in threemonthly installments beginning October 20, 2020.The creation and development fee is fixed at $0.05 perunit and is paid at the end of the initial offering period(anticipated to be approximately three months). Whenthe public offering price per unit is less than or equalto $10, you will not pay an initial sales fee. When thepublic offering price per unit is greater than $10 perunit, you will pay an initial sales fee.

EXAMPLE

This example helps you compare the cost of thistrust with other unit trusts and mutual funds. In theexample we assume that the expenses do not change andthat the trust’s annual return is 5%. Your actual returnsand expenses will vary. Based on these assumptions, youwould pay these expenses for every $10,000 you investin the trust:




Numberof Shares



Price




Communication Services — 10.00%98 T AT&T, Inc. 2.00% $30.49 $2,98874 CMCSA Comcast Corporation 2.00 40.33 2,984172 IPG The Interpublic Group of

Companies, Inc.2.00 17.36 2,986

54 OMC Omnicom Group, Inc. 2.00 55.26 2,98454 VZ Verizon Communications, Inc. 2.00 55.24 2,983

Consumer Discretionary — 10.01%34 BBY Best Buy Company, Inc. 2.00 87.70 2,98212 HD The Home Depot, Inc. 2.00 249.55 2,99522 LOW Lowe's Companies, Inc. 2.00 135.76 2,98716 MCD McDonald's Corporation 2.02 188.50 3,01625 TGT Target Corporation 1.99 119.24 2,981

Consumer Staples — 7.98%75 MO Altria Group, Inc. 1.99 39.60 2,97058 MDLZ Mondelez International, Inc. 2.00 51.62 2,99422 PEP PepsiCo, Inc. 1.96 133.30 2,93325 PG The Procter & Gamble Company 2.03 121.63 3,041

Energy — 2.01%34 CVX Chevron Corporation 2.01 88.57 3,011

Financials — 10.02%28 MMC Marsh & McLennan Companies, Inc. 2.02 107.92 3,02281 MET MetLife, Inc. 2.01 37.09 3,00437 PGR The Progressive Corporation 1.97 79.42 2,93849 PRU Prudential Financial, Inc. 2.01 61.31 3,00424 TROW T Rowe Price Group, Inc. 2.01 125.26 3,006

Health Care — 14.07%12 AMGN Amgen, Inc. 2.06 256.25 3,07518 LLY Eli Lilly and Company 2.01 166.89 3,00421 JNJ Johnson & Johnson 2.01 142.98 3,00232 MDT Medtronic PLC (3) 2.00 93.21 2,98337 MRK Merck & Company, Inc. 1.97 79.58 2,94486 PFE Pfizer, Inc. 1.99 34.51 2,96810 UNH UnitedHealth Group, Inc. 2.03 302.81 3,028

Industrials — 7.99%19 MMM 3M Company 2.01 158.10 3,00417 CMI Cummins, Inc. 2.03 178.16 3,02947 RTX Raytheon Technologies Corporation 1.99 63.32 2,97617 UNP Union Pacific Corporation 1.96 172.16 2,927


(Continued)

Dividend Strength Portfolio, Series 2020-3 –A Hartford Investment Management Company (“HIMCO”) Portfolio(Advisors Disciplined Trust 2021)PortfolioAs of the trust inception date, July 7, 2020

Numberof Shares



Price




Information Technology — 27.94%24 ADI Analog Devices, Inc. 1.99% $123.62 $2,9678 AAPL Apple, Inc. 2.00 373.85 2,99120 ADP Automatic Data Processing, Inc. 2.02 150.73 3,01564 CSCO Cisco Systems, Inc. 1.99 46.42 2,971111 GLW Corning, Inc. 1.99 26.82 2,977170 HPQ HP, Inc. 1.99 17.46 2,96850 INTC Intel Corporation 1.99 59.54 2,97725 IBM International Business Machines

Corporation2.01 120.19 3,005

14 MSFT Microsoft Corporation 1.97 210.70 2,95067 NTAP NetApp, Inc. 2.02 45.05 3,01853 ORCL Oracle Corporation 2.01 56.60 3,00038 PAYX Paychex, Inc. 1.98 77.78 2,95632 QCOM QUALCOMM, Inc. 1.99 92.92 2,97323 TXN Texas Instruments, Inc. 1.99 129.53 2,979

Materials — 2.02%84 IP International Paper Company 2.02 35.94 3,019

Real Estate — 3.99%11 AMT American Tower Corporation 1.96 265.97 2,92644 SPG Simon Property Group, Inc. 2.03 68.93 3,033

Utilities — 3.97%12 NEE NextEra Energy, Inc. 1.98 246.96 2,963115 PPL PPL Corporation 1.99 25.88 2,976

100.00% $149,413

Notes to Portfolio(1) Securities are represented by contracts to purchase such securities. The value of each security is based on the most recent closing sale price of each security

as of the closeof regular tradingon theNewYorkStockExchangeon the businessdayprior to the trust’s inception date. In accordancewithAccountingStandardsCodification 820, “Fair ValueMeasurements”, the trust’s investments are classified as Level 1, which refers to security prices determined using quoted prices inactive markets for identical securities.



Common stocks comprise 100.00% of the investments in the trust, broken down by country of organization of the issuer as set forth below:

Ireland 2.00%United States 98.00%


Dividend Strength Portfolio, Series 2020-3 –A Hartford Investment Management Company (“HIMCO”) Portfolio(Advisors Disciplined Trust 2021)Portfolio (continued)As of the trust inception date, July 7, 2020

FINANCIAL OPPORTUNITIES PORTFOLIO


The trust seeks to provide capital appreciation.There is no assurance the trust will achieveits objective.


The trust seeks to provide capital appreciation byinvesting in a diversified portfolio of common stocksof companies involved in aspects of the financialindustry including, among other things, banking,mortgage finance, consumer finance, specializedfinance, investment banking and brokerage, assetmanagement and custody, corporate lending, insur-ance, financial investment, and real estate.

In selecting the securities for the portfolio, we* con-sidered market capitalization, revenues, revenue growth,earnings, earnings growth and valuation to construct aportfolio that we believe adequately represents the finan-cial industry. Under normal circumstances the trust willinvest at least 80% of its assets in securities of companiesinvolved in aspects of the financial industry.

PRINCIPAL RISKS

As with all investments, you can lose money byinvesting in this trust. The trust also might not per-form as well as you expect. This can happen forreasons such as these:

• Security prices will fluctuate. The value of yourinvestment may fall over time. The potentialeconomic impacts of the novel form ofcoronavirus disease first detected in 2019(“COVID-19”), which spread rapidly around theglobe which led the World Health Organizationto declare the COVID-19 outbreak a pandemicin March 2020, are not fully known. TheCOVID-19 pandemic, or any future publichealth crisis, are impossible to predict and couldresult in adverse market conditions which maynegatively impact the performance of thesecurities in the portfolio and the trust.


• The issuer of a security may be unwilling orunable to make dividend payments in thefuture. This may reduce the level ofdividends the trust receives which wouldreduce your income and cause the value ofyour units to fall. The COVID-19 pandemichas resulted in a decline in economic activityand caused many companies to reduce thelevel of dividends declared and manycompanies may be unwilling or unable todeclare dividends for the foreseeable future.It is also possible that current or futuregovernment aid programs could limitcompanies from paying dividends as acondition to receiving government aid ordiscourage companies from doing so.


• The trust is concentrated in securitiesissued by companies in the financials sector.Negative developments in the financialssector will affect the value of yourinvestment more than would be the case in amore diversified investment.

• The trust may invest in securities of smalland mid-size companies. These securities areoften more volatile and have lower tradingvolumes than securities of larger companies.Small and mid-size companies may havelimited products or financial resources,management inexperience and less publiclyavailable information.

• We do not actively manage the portfolio.Except in limited circumstances, the trustwill generally hold, and continue to buy,shares of the same securities even if theirmarket value declines.


WHO SHOULD INVEST


• to own a defined portfolio of stocks ofcompanies involved in aspects of the financialindustry.

• the potential for capital appreciation.



• are uncomfortable investing in companiesinvolved in aspects of the financial industry.

• seek current income or capital preservation.




Distribution dates 25th day of January, April,July and October

Record dates 10th day of January, April,July and October



Ticker Symbol FOPARX



FEES AND EXPENSES


Sales Fee


Amountper 100Units





As a %of NetAssets

Amountper 100Units



Total 0.30% $2.90

The initial sales fee is the difference between thetotal sales fee (maximum of 2.75% of the unit offeringprice) and the sum of the remaining deferred sales feeand the total creation and development fee. The deferredsales fee is fixed at $0.225 per unit and is paid in threemonthly installments beginning January 20, 2021. Thecreation and development fee is fixed at $0.05 per unitand is paid at the end of the initial offering period(anticipated to be approximately six months). When thepublic offering price per unit is less than or equal to$10, you will not pay an initial sales fee. When the pub-lic offering price per unit is greater than $10 per unit,you will pay an initial sales fee.

EXAMPLE





Numberof Shares



Price



COMMON STOCKS — 100.00%Financials — 89.95%

39 ALL The Allstate Corporation 2.50% $95.64 $3,73038 AXP American Express Company 2.46 96.58 3,67095 ARES Ares Management Corporation 2.51 39.36 3,73938 AJG Arthur J Gallagher & Company 2.47 96.88 3,681157 BAC Bank of America Corporation 2.49 23.66 3,71520 BRK/B Berkshire Hathaway, Inc. (3) 2.45 182.72 3,6547 BLK BlackRock, Inc. 2.62 557.55 3,90367 BX The Blackstone Group, Inc. 2.49 55.36 3,709107 SCHW The Charles Schwab Corporation 2.46 34.21 3,66172 C Citigroup, Inc. 2.51 51.97 3,742153 CFG Citizens Financial Group, Inc. 2.49 24.27 3,71373 DFS Discover Financial Services 2.48 50.61 3,695106 EWBC East West Bancorp, Inc. 2.50 35.16 3,727198 FITB Fifth Third Bancorp 2.51 18.86 3,73435 FRC First Republic Bank 2.49 105.79 3,70318 GS The Goldman Sachs Group, Inc. 2.51 207.36 3,73397 HIG The Hartford Financial Services

Group, Inc.2.49 38.30 3,715

40 ICE Intercontinental Exchange, Inc. 2.48 92.53 3,70139 JPM JPMorgan Chase & Company 2.49 95.00 3,705312 KEY KeyCorp 2.50 11.95 3,72848 LPLA LPL Financial Holdings, Inc. 2.51 78.05 3,74634 MMC Marsh & McLennan Companies, Inc. 2.46 107.92 3,669101 MET MetLife, Inc. 2.52 37.09 3,74613 MCO Moody's Corporation 2.48 283.65 3,68776 MS Morgan Stanley 2.49 48.82 3,71031 NDAQ Nasdaq, Inc. 2.52 121.08 3,75436 PNC The PNC Financial Services Group, Inc. 2.50 103.35 3,72147 PGR The Progressive Corporation 2.51 79.42 3,73311 SPGI S&P Global, Inc. 2.52 341.02 3,75135 SBNY Signature Bank 2.47 104.94 3,67318 SIVB SVB Financial Group (3) 2.58 213.41 3,84130 TROW T Rowe Price Group, Inc. 2.52 125.26 3,758101 TFC Truist Financial Corporation 2.49 36.69 3,706101 USB US Bancorp 2.50 36.83 3,72031 VRTS Virtus Investment Partners, Inc. 2.46 118.04 3,659104 WAL Western Alliance Bancorp 2.52 36.11 3,755


(Continued)

Financial Opportunities Portfolio, Series 2020-3(Advisors Disciplined Trust 2021)PortfolioAs of the trust inception date, July 7, 2020

Numberof Shares



Price




Information Technology — 7.53%22 GPN Global Payments, Inc. 2.53% $171.07 $3,76421 PYPL PayPal Holdings, Inc. (3) 2.48 176.18 3,70019 V Visa, Inc. 2.52 197.76 3,757

Real Estate — 2.52%81 CBRE CBRE Group, Inc. (3) 2.52 46.38 3,757




(3) This is a non-income producing security.



Financial Opportunities Portfolio, Series 2020-3(Advisors Disciplined Trust 2021)Portfolio (continued)As of the trust inception date, July 7, 2020

UBIQUITOUS STRATEGY PORTFOLIO


The trust seeks to provide above average totalreturn primarily through capital appreciation. There isno assurance the trust will achieve its objective.


The trust seeks to achieve its objective by invest-ing in a portfolio of stocks of companies deriving asubstantial portion of their revenues worldwide thatPence Capital Management, LLC (the “Portfolio Con-sultant”) believes are involved in aspects of thetransformation of consumer behavior and a shift inhow people transact purchases. Today, shopping hasbecome easier as innovations in electronics and infor-mation technology provide consumers access to a widerange of products from the convenience of almostanywhere and the ease of using their smart phonesand tablets. Consumers can fulfill desires spontane-ously without going to brick and mortar stores.Consumers shop online using smart phones and tab-lets, connect wirelessly from almost anywhere, are ableto purchase almost any product online, pay by creditcards and have products delivered to their doorsteps.

From these companies involved in aspects of thisshift in how people transact purchases, securities wereselected for the trust’s portfolio by analyzing factorsincluding expected market dominance over the nextthree to five years, relative size within industry sectorsbased on market capitalization, steadiness of pastearnings growth rates and revenue growth, strength ofearnings and revenue projects, balance sheet strength,valuation and levels of cash holdings.

PRINCIPAL RISKS

As with all investments, you can lose money byinvesting in this trust. The trust also might not per-form as well as you expect. This can happen forreasons such as these:

• Security prices will fluctuate. The value of yourinvestment may fall over time. The potential


economic impacts of the novel form ofcoronavirus disease first detected in 2019(“COVID-19”), which spread rapidly aroundthe globe which led the World HealthOrganization to declare the COVID-19outbreak a pandemic in March 2020, are notfully known. The COVID-19 pandemic, orany future public health crisis, are impossibleto predict and could result in adverse marketconditions which may negatively impact theperformance of the securities in the portfolioand the trust.


• The issuer of a security may be unwilling orunable to make dividend payments in thefuture. This may reduce the level ofdividends the trust receives which wouldreduce your income and cause the value ofyour units to fall. The COVID-19 pandemichas resulted in a decline in economic activityand caused many companies to reduce thelevel of dividends declared and manycompanies may be unwilling or unable todeclare dividends for the foreseeable future.It is also possible that current or futuregovernment aid programs could limitcompanies from paying dividends as acondition to receiving government aid ordiscourage companies from doing so.

• The trust is concentrated in securities issued bycompanies in the communication services andinformation technology sectors. Negativedevelopments in these sectors will affect the valueof your investment more than would be the casein a more diversified investment.

• We* do not actively manage the portfolio.Except in limited circumstances, the trust willgenerally hold, and continue to buy, shares ofthe same securities even if their marketvalue declines.



The Portfolio Consultant, Pence CapitalManagement, LLC, is a registered investment adviserregistered with the state of California.

Pence Capital Management, LLC is a registeredinvestment advisory firm based in Newport Beach,California. The firm uses its proprietary research toidentify and deliver actionable investment insights.The firm is led by Colonel (ret) E. Dryden Pence III,a Harvard-educated economist with thirty years ofexperience in the financial industry. His formal train-ing and knowledge in economics combined with hiscareer of more than twenty-two years in Army Intelli-gence, Special Operations and Psychological Warfare,gives the firm a unique understanding of humanbehavior and its effects on the economy and the mar-kets. The Ubiquitous Strategy Portfolio is based onthe firm’s expertise in portfolio construction.

The Portfolio Consultant is not an affiliate of thesponsor. The Portfolio Consultant makes no represen-tations that the portfolio will achieve the investmentobjectives or will be profitable or suitable for any par-ticular potential investor.

The Portfolio Consultant and/or its affiliates mayuse the list of securities in its independent capacity asan investment adviser and distribute this informationto various individuals and entities. The Portfolio Con-sultant and/or its affiliates may recommend to otherclients or otherwise effect transactions in the securitiesheld by the trust. This may have an adverse effect onthe prices of the securities. This also may have animpact on the price the trust pays for the securitiesand the price received upon unit redemptions or liq-uidation of the securities. The Portfolio Consultantand/or its affiliates also may issue reports and makesrecommendations on securities, which may includethe securities in the trust.

Neither the Portfolio Consultant nor the sponsormanages the trust. Opinions expressed by the Portfo-lio Consultant are not necessarily those of thesponsor, and may not actually come to pass. ThePortfolio Consultant is being compensated for itsportfolio consulting services, including selection of thetrust portfolio.


WHO SHOULD INVEST


• to own a defined portfolio of stocks.

• the potential for capital appreciation.



• seek high current income or capitalpreservation.







Ticker Symbol UBQPRX


Tax Structure Grantor Trust

FEES AND EXPENSES


Sales Fee


Amountper 100Units





As a %of NetAssets

Amountper 100Units



Total 0.22% $2.19

The initial sales fee is the difference between thetotal sales fee (maximum of 2.75% of the unit offeringprice) and the sum of the remaining deferred sales feeand the total creation and development fee. The deferredsales fee is fixed at $0.225 per unit with the first install-ment commencing on October 20, 2020, the secondinstallment on November 20, 2020 and the final install-ment on December 20, 2020. The creation anddevelopment fee is fixed at $0.05 per unit and is paid atthe end of the initial offering period (anticipated to beapproximately three months). When the public offeringprice per unit is less than or equal to $10, you will notpay an initial sales fee. When the public offering priceper unit is greater than $10 per unit, you will pay aninitial sales fee.

EXAMPLE





Numberof Shares



Price




Communication Services — 31.96%19 GOOGL Alphabet, Inc. (3) 10.03% $1,499.65 $28,493186 T AT&T, Inc. 2.00 30.49 5,67116 CHTR Charter Communications, Inc. (3) 2.96 526.29 8,421211 CMCSA Comcast Corporation 3.00 40.33 8,510118 FB Facebook, Inc. (3) 9.98 240.28 28,35353 TMUS T-Mobile US, Inc. (3) 1.99 106.78 5,659103 VZ Verizon Communications, Inc. 2.00 55.24 5,690

Consumer Discretionary — 15.07%14 AMZN Amazon.com, Inc. (3) 15.07 3,057.04 42,798

Financials — 2.99%88 AXP American Express Company 2.99 96.58 8,499

Industrials — 4.03%37 FDX FedEx Corporation 2.04 156.27 5,78249 UPS United Parcel Service, Inc. 1.99 115.36 5,653

Information Technology — 39.94%76 AAPL Apple, Inc. 10.00 373.85 28,41374 MA Mastercard, Inc. 7.96 305.57 22,612134 MSFT Microsoft Corporation 9.94 210.70 28,23465 PYPL PayPal Holdings, Inc. (3) 4.03 176.18 11,452115 V Visa, Inc. 8.01 197.76 22,742

Real Estate — 6.01%32 AMT American Tower Corporation 3.00 265.97 8,51149 CCI Crown Castle International Corporation 3.01 174.30 8,541

100.00% $284,034

Notes to Portfolio



(3) This is a non-income producing security.


Ubiquitous Strategy Portfolio, Series 2020-3(Advisors Disciplined Trust 2021)PortfolioAs of the trust inception date, July 7, 2020

UNDERSTANDING YOUR INVESTMENT

HOW TO BUY UNITS

You can buy units of a trust on any businessday the New York Stock Exchange is open bycontacting your financial professional. Unitprices are available daily on the Internet atwww.AAMlive.com. The public offering price ofunits includes:

• the net asset value per unit plus

• organization costs plus

• the sales fee.

The “net asset value per unit” is the value ofthe securities, cash and other assets in your trustreduced by the liabilities of your trust divided bythe total units or your trust outstanding. Weoften refer to the public offering price of units asthe “offer price” or “purchase price.” The offerprice will be effective for all orders received priorto the close of regular trading on the New YorkStock Exchange (normally 4:00 p.m. Easterntime). If we receive your order prior to the closeof regular trading on the New York StockExchange or authorized financial professionalsreceive your order prior to that time and prop-erly transmit the order to us by the time that wedesignate, then you will receive the price com-puted on the date of receipt. If we receive yourorder after the close of regular trading on theNew York Stock Exchange, if authorized financialprofessionals receive your order after that time orif orders are received by such persons and are nottransmitted to us by the time that we designate,then you will receive the price computed on thedate of the next determined offer price providedthat your order is received in a timely manner onthat date. It is the responsibility of the autho-rized financial professional to transmit the ordersthat they receive to us in a timely manner. Cer-tain broker-dealers may charge a transaction orother fee for processing unit purchase orders.

Value of the Securities. We determine thevalue of the securities as of the close of regulartrading on the New York Stock Exchange oneach day that exchange is open. We generallydetermine the value of securities using the lastsale price for securities traded on a national secu-rities exchange. For this purpose, the trusteeprovides us closing prices from a reporting ser-vice approved by us. In some cases we will pricea security based on the last asked or bid price inthe over-the-counter market or by using otherrecognized pricing methods. We will only do thisif a security is not principally traded on anational securities exchange or if the marketquotes are unavailable or inappropriate.

We determined the initial prices of the secu-rities shown under each “Portfolio” section inthis prospectus as described above at the close ofregular trading on the New York Stock Exchangeon the business day before the date of this pro-spectus. On the first day we sell units we willcompute the unit price as of the close of regulartrading on the New York Stock Exchange or thetime the registration statement filed with theSecurities and Exchange Commission becomeseffective, if later.

Organization Costs. During the initial offer-ing period, part of the value of the unitsrepresents an amount that will pay the costs ofcreating your trust. These costs include the costsof preparing the registration statement and legaldocuments, a portfolio consultant’s security selec-tion fee (if any), federal and state registrationfees, the initial fees and expenses of the trusteeand the initial audit. Your trust will sell securitiesto reimburse us for these costs at the end of theinitial offering period or after six months,if earlier.

The value of your units will decline whenyour trust pays these costs.

Sales Fee. The maximum sales fee is shownunder “Fees and Expenses” for your trust and is2.75% of the public offering price per unit atthe time of purchase.

28 Understanding Your Investment

You pay a fee in connection with purchasingunits. We refer to this fee as the “transactionalsales fee”. The transactional sales fee has both aninitial and a deferred component. The transac-tional sales fee equals 2.25% of the publicoffering price per unit based on a $10 publicoffering price per unit. The percentage amountof the transactional sales fee is based on the unitprice on your trust’s inception date. The transac-tional sales fee equals the difference between thetotal sales fee and the creation and developmentfee. As a result, the percentage and dollaramount of the transactional sales fee will vary asthe public offering price per unit varies. Thetransactional sales fee does not include the cre-ation and development fee which is describedunder “Fees and Expenses” for your trust.

You pay the initial sales fee, if any, at thetime you buy units. The initial sales fee is thedifference between the total sales fee percentage(maximum of 2.75% of the public offering priceper unit) and the sum of the remaining fixeddollar deferred sales fee and the total fixed dollarcreation and development fee. The initial salesfee will be 0.00% of the public offering price perunit at a public offering price per unit of $10. Ifthe public offering price per unit exceeds $10,you will be charged an initial sales fee equal tothe difference between the total sales fee percent-age (maximum of 2.75% of the public offeringprice per unit) and the sum of the remainingfixed dollar deferred sales fee and total fixed dol-lar creation and development fee. The deferredsales fee is fixed at $0.225 per unit. Your trustpays the deferred sales fee in equal monthlyinstallments as described under “Fees andExpenses” for your trust. If you redeem or sellyour units prior to collection of the totaldeferred sales fee, you will pay any remainingdeferred sales fee upon redemption or sale ofyour units.

Since the deferred sales fee and creation anddevelopment fee are fixed dollar amounts perunit, your trust must charge these amounts perunit regardless of any decrease in net asset value.As a result, if the public offering price per unit

falls to less than $10 (resulting in the maximumsales fee percentage being a dollar amount that isless than the combined fixed dollar amounts ofthe deferred sales fee and creation and develop-ment fee) your initial sales fee will be a creditequal to the amount by which these fixed dollarfees exceed the sales fee at the time you buyunits. In such a situation, the value of securitiesper unit would exceed the public offering priceper unit by the amount of the initial sales feecredit and the value of those securities will fluc-tuate, which could result in a benefit ordetriment to unitholders that purchase units atthat price. The initial sales fee credit is paid bythe sponsor and is not paid by the trust.

If you purchase units after the last deferredsales fee payment has been assessed, the second-ary market sales fee is equal to 2.75% of thepublic offering price and does not includedeferred payments (i.e. unitholders who buy inthe secondary market after collection of thedeferred sales fees are not charged deferredsales fees).

Minimum Purchase. The minimum amountyou can purchase appears under “Essential Infor-mation” for your trust, but such amounts mayvary depending on your selling firm.

Reducing Your Sales Fee. We offer a varietyof ways for you to reduce the fee you pay. It isyour financial professional’s responsibility to alertus of any discount when you order units. Exceptas expressly provided herein, you may not com-bine discounts. Since the deferred sales fee andthe creation and development fee are fixed dollaramounts per unit, your trust must charge thesefees per unit regardless of any discounts. How-ever, if you are eligible to receive a discount suchthat your total sales fee is less than the fixed dol-lar amounts of the deferred sales fee and thecreation and development fee, we will credit youthe difference between your total sales fee andthese fixed dollar fees at the time you buy units.

Fee Accounts. Investors may purchase unitsthrough registered investment advisers, certifiedfinancial planners or registered broker-dealers

Understanding Your Investment 29

who in each case either charge investor accounts(“Fee Accounts”) periodic fees for brokerage ser-vices, financial planning, investment advisory orasset management services, or provide such ser-vices in connection with an investment accountfor which a comprehensive “wrap fee” charge(“Wrap Fee”) is imposed. You should consultyour financial advisor to determine whether youcan benefit from these accounts. To purchaseunits in these Fee Accounts, your financial advi-sor must purchase units designated with one ofthe Fee Account CUSIP numbers, if available.Please contact your financial advisor for moreinformation. If units are purchased for a FeeAccount and the units are subject to a Wrap Feein such Fee Account (i.e., the trust is “Wrap FeeEligible”) then investors may be eligible to pur-chase units in these Fee Accounts that are notsubject to the transactional sales fee but will besubject to the creation and development fee thatis retained by the sponsor. For example, thistable illustrates the sales fee you will pay as apercentage of the initial $10 public offeringprice per unit (the percentage will vary with theunit price).

Initial sales fee 0.00%Deferred sales fee 0.00%

Transactional sales fee 0.00%Creation and development fee 0.50%

Total sales fee 0.50%

This discount applies only during the initialoffering period. Certain Fee Account investorsmay be assessed transaction or other fees on thepurchase and/or redemption of units by theirbroker-dealer or other processing organizationsfor providing certain transaction or accountactivities. We reserve the right to limit or denypurchases of units in Fee Accounts by investorsor selling firms whose frequent trading activity isdetermined to be detrimental to a trust.

Employees. We waive the transactional salesfee for purchases made by officers, directors andemployees (and immediate family members) of

the sponsor and its affiliates. These purchases arenot subject to the transactional sales fee but willbe subject to the creation and development fee.We also waive a portion of the sales fee for pur-chases made by officers, directors and employees(and immediate family members) of selling firms.These purchases are made at the public offeringprice per unit less the applicable regular dealerconcession. Immediate family members for thepurposes of this section include your spouse,children (including step-children) under the ageof 21 living in the same household, and parents(including step-parents). These discounts applyto initial offering period and secondary marketpurchases. All employee discounts are subject tothe policies of the related selling firm, includingbut not limited to, householding policiesor limitations. Only officers, directors andemployees (and their immediate family members)of selling firms that allow such persons to partici-pate in this employee discount program areeligible for the discount.

Dividend Reinvestment Plan. We do notcharge any sales fee when you reinvest distribu-tions from your trust into additional units ofyour trust. This sales fee discount applies to ini-tial offering period and secondary marketpurchases. Since the deferred sales fee and thecreation and development fee are fixed dollaramounts per unit, your trust must charge thesefees per unit regardless of this discount. If youelect the distribution reinvestment plan, we willcredit you with additional units with a dollarvalue sufficient to cover the amount of anyremaining deferred sales fee or creation anddevelopment fee that will be collected on suchunits at the time of reinvestment. The dollarvalue of these units will fluctuate over time.

Retirement Accounts. Your portfolio may besuitable for purchase in tax-advantaged retire-ment accounts. You should contact your financialprofessional about the accounts offered and anyadditional fees imposed.


HOW TO SELL YOUR UNITS

You can sell or redeem your units on anybusiness day the New York Stock Exchange isopen by contacting your financial professional.Unit prices are available daily on the Internet atwww.AAMlive.com or through your financialprofessional. The sale and redemption price ofunits is equal to the net asset value per unit, pro-vided that you will not pay any remainingcreation and development fee or organizationcosts if you sell or redeem units during the initialoffering period. The sale and redemption price issometimes referred to as the “liquidation price.”You pay any remaining deferred sales fee whenyou sell or redeem your units. Certain broker-dealers may charge a transaction or other fee forprocessing unit redemption or sale requests.

Selling Units. We may maintain a secondarymarket for units. This means that if you want tosell your units, we may buy them at the currentnet asset value, provided that you will not payany remaining creation and development fee ororganization costs if you sell units during theinitial offering period. We may then resell theunits to other investors at the public offeringprice or redeem them for the redemption price.Our secondary market repurchase price is thesame as the redemption price. Certain broker-dealers might also maintain a secondary marketin units. You should contact your financial pro-fessional for current repurchase prices todetermine the best price available. We may dis-continue our secondary market at any timewithout notice. Even if we do not make a mar-ket, you will be able to redeem your units withthe trustee on any business day for the currentredemption price.

Redeeming Units. You may also redeem yourunits directly with the trustee, The Bank of NewYork Mellon, on any day the New York StockExchange is open. The redemption price that youwill receive for units is equal to the net assetvalue per unit, provided that you will not payany remaining creation and development fee ororganization costs if you redeem units during the

initial offering period. You will pay any remain-ing deferred sales fee at the time you redeemunits. You will receive the net asset value for aparticular day if the trustee receives your com-pleted redemption request prior to the close ofregular trading on the New York StockExchange. Redemption requests received byauthorized financial professionals prior to theclose of regular trading on the New York StockExchange that are properly transmitted to thetrustee by the time designated by the trustee, arepriced based on the date of receipt. Redemptionrequests received by the trustee after the close ofregular trading on the New York StockExchange, redemption requests received byauthorized financial professionals after that timeor redemption requests received by such personsthat are not transmitted to the trustee until afterthe time designated by the trustee, are pricedbased on the date of the next determinedredemption price provided they are received in atimely manner by the trustee on such date. It isthe responsibility of authorized financial profes-sionals to transmit redemption requests receivedby them to the trustee so they will be received ina timely manner. If your request is not receivedin a timely manner or is incomplete in any way,you will receive the next net asset value com-puted after the trustee receives yourcompleted request.

If you redeem your units, the trustee willgenerally send you a payment for your units nolater than seven days after it receives all necessarydocumentation (this will usually only take twobusiness days). The only time the trustee candelay your payment is if the New York StockExchange is closed (other than weekends or holi-days), the Securities and Exchange Commissiondetermines that trading on that exchange isrestricted or an emergency exists making sale orevaluation of the securities not reasonably practi-cable, and for any other period that theSecurities and Exchange Commission permits.

You can request an in-kind distribution ofthe securities underlying your units if you tenderat least 2,500 units for redemption (or such


other amount as required by your financial pro-fessional’s firm). This option is generally availableonly for securities traded and held in the UnitedStates. The trustee will make any in-kind distri-bution of securities by distributing applicablesecurities in book entry form to the account ofyour financial professional at Depository TrustCompany. You will receive whole shares of theapplicable securities and cash equal to any frac-tional shares. You may not request this option inthe last 30 days of your trust’s life. We may dis-continue this option upon sixty days notice.

Rollover Option. Your trust’s strategy may bea long-term investment strategy designed to befollowed on an annual basis. You may achievemore consistent long-term investment results byfollowing the strategy. As part of the strategy, wecurrently intend to offer a subsequent series ofyour trust for a rollover when the current trustterminates. When your trust terminates you willhave the option to (1) participate in a rolloverand have your units reinvested into a subsequenttrust series through a cash rollover as describedin this section, (2) receive an in-kind distributionof securities or (3) receive a cash distribution.

If you elect to participate in a rollover, yourunits will be redeemed on your trust’s termina-tion date. As the redemption proceeds becomeavailable, the proceeds (including dividends) willbe invested in a new trust series, if available, atthe public offering price for the new trust. Thetrustee will attempt to sell securities to satisfy theredemption as quickly as practicable on the ter-mination date. We do not anticipate that the saleperiod will be longer than one day, however, cer-tain factors could affect the ability to sell thesecurities and could impact the length of the saleperiod. The liquidity of any security depends onthe daily trading volume of the security and theamount available for redemption and reinvest-ment on any day.

We intend to make subsequent trust seriesavailable for sale at various times during the year.Of course, we cannot guarantee that a subse-quent trust or sufficient units will be available or

that any subsequent trusts will offer the sameinvestment strategies or objectives as currenttrusts. We cannot guarantee that a rollover willavoid any negative market price consequencesresulting from trading large volumes of securities.Market price trends may make it advantageous tosell or buy securities more quickly or moreslowly than permitted by the trust procedures.We may, in our sole discretion, modify a rolloveror stop creating units of any future trust at anytime regardless of whether all proceeds ofunitholders have been reinvested in a rollover.We may decide not to offer a rollover optionupon sixty days notice. Cash which has not beenreinvested in a rollover will be distributed tounitholders shortly after the termination date.Rollover participants may receive taxable divi-dends or realize taxable capital gains which arereinvested in connection with a rollover but maynot be entitled to a deduction for capital lossesdue to the “wash sale” tax rules. Due to the rein-vestment in a subsequent trust, no cash will bedistributed to pay any taxes. See “UnderstandingYour Investment—Taxes”.

DISTRIBUTIONS

Distributions. Your trust generally pays dis-tributions of its net investment income alongwith any excess capital on each distribution dateto unitholders of record on the preceding recorddate. If your trust is a “grantor trust” for federaltax purposes, the trust will generally only make adistribution if the total cash held for distributionequals at least 0.1% of the trust’s net asset valueas determined under the trust agreement. Therecord and distribution dates and the tax statusare shown under “Essential Information” in the“Investment Summary” section of this prospectusfor your trust. In some cases, your trust mightpay a special distribution if it holds an excessiveamount of cash pending distribution. Forexample, this could happen as a result of amerger or similar transaction involving a com-pany whose stock is in your portfolio. Your trustwill also generally make required distributions ordistributions to avoid imposition of tax at the


end of each year if it is structured as a “regulatedinvestment company” for federal tax purposes.The amount of your distributions will vary fromtime to time as companies change their dividendsand other income distributions or trustexpenses change.

When your trust receives dividends andother income distributions from a portfolio secu-rity, the trustee credits such payments to thetrust’s accounts. In an effort to make relativelyregular income distributions, if your trust is a“regulated investment company” for tax purposesand makes monthly distributions, your trust’smonthly income distribution is equal to onetwelfth of the estimated net annual income dis-tributions to be received by your trust afterdeduction of trust operating expenses. Because atrust does not receive income distributions fromthe portfolio securities at a constant ratethroughout the year, the income distributions tounitholders from such a trust may be more orless than the amount credited to your trustaccounts as of the record date. For the purposeof minimizing fluctuation in income distribu-tions, the trustee is authorized to advance suchamounts as may be necessary to provide incomedistributions of approximately equal amounts.The trustee will be reimbursed, without interest,for any such advances from available incomereceived by a trust on the ensuing record date.

Reports. The trustee or your financial profes-sional will make available to you a statementshowing income and other receipts of your trustfor each distribution. Each year the trustee willalso provide an annual report on your trust’sactivity and certain tax information. You canrequest copies of security evaluations to enableyou to complete your tax forms and auditedfinancial statements for your trust, if available.

INVESTMENT RISKS

All investments involve risk. This sectiondescribes the main risks that can impact thevalue of the securities in your portfolio. Youshould understand these risks before you invest.

If the value of the securities falls, the value ofyour units will also fall. We cannot guaranteethat your trust will achieve its objective or thatyour investment return will be positive overany period.

Market Risk. Market risk is the risk that thevalue of the securities in your trust will fluctuate.This could cause the value of your units to fallbelow your original purchase price. Market valuefluctuates in response to various factors. Thesecan include changes in interest rates, inflation,the financial condition of a security’s issuer, per-ceptions of the issuer, or ratings on a security.Even though we supervise your portfolio, youshould remember that we do not manage yourportfolio. Your trust will not sell a security solelybecause the market value falls as is possible in amanaged fund. First detected in late 2019,COVID-19 spread rapidly around the globewhich led the World Health Organization todeclare the COVID-19 outbreak a pandemic inMarch 2020. The COVID-19 pandemic hasadversely affected commercial activities, disruptedsupply chains and greatly increased market vola-tility. Many countries have reacted to this crisisthrough prevention measures, such as quaran-tines, and government intervention, includingplacing restrictions on travel and business opera-tions. These measures along with the generaluncertainty caused from this pandemic hasresulted in a decline in consumer demand acrossmany industries and imposed significant costs ongovernmental and business entities. The potentialeconomic impacts of the COVID-19 pandemic,or any future public health crisis, are impossibleto predict and could result in adverse marketconditions which may negatively impact the per-formance of the securities in the portfolio andyour trust.

Selection Risk. Selection risk is the risk thatthe securities selected for inclusion by your trustor by a fund’s management will underperformthe markets, relevant indices or the securitiesselected by other funds with similar investmentobjectives and investment strategies. This means


you may lose money or earn less money thanother comparable investments.

Equity Securities. Your trust and/or certainfunds held by your trust may invest in securitiesrepresenting equity ownership of a company.Investments in such securities are exposed torisks associated with the companies issuing thesecurities, the sectors and geographic locationsthey are involved in and the markets that suchsecurities are traded on among other risks asdescribed herein.

Fixed Income Securities. Certain funds heldby your trust may invest in fixed income securi-ties and similar securities. Fixed income securitiesinvolve certain unique risks such as credit riskand interest rate risk among other things asdescribed in greater detail below.

Dividend Payment Risk. Dividend paymentrisk is the risk that an issuer of a security isunwilling or unable to pay income on a security.Stocks represent ownership interests in the issuersand are not obligations of the issuers. Commonstockholders have a right to receive dividendsonly after the company has provided for paymentof its creditors, bondholders and preferred stock-holders. Common stocks do not assure dividendpayments. Dividends are paid only whendeclared by an issuer’s board of directors and theamount of any dividend may vary over time. TheCOVID-19 pandemic has resulted in a declinein economic activity and caused many companiesto reduce the level of dividends declared andmany companies may be unwilling or unable todeclare dividends for the foreseeable future. It isalso possible that current or future governmentaid programs could limit companies from payingdividends as a condition to receiving governmentaid or discourage companies from doing so.

Credit Risk. Credit risk is the risk that a bor-rower is unable to meet its obligation to payprincipal or interest on a security held by a fund.This could cause the value of your units to falland may reduce the level of dividends a fundpays which would reduce your income. TheCOVID-19 pandemic has resulted in a decline

in economic activity which could negativelyimpact the ability of borrowers to make principalor interest payment on securities, when due.

Interest Rate Risk. Interest rate risk is therisk that the value of fixed income securities andsimilar securities held by a fund will fall if inter-est rates increase. Bonds and other fixed incomesecurities typically fall in value when interestrates rise and rise in value when interest ratesfall. Securities with longer periods before matu-rity are often more sensitive to interest ratechanges. The securities in your trust may be sub-ject to a greater risk of rising interest rates thanwould normally be the case due to the currentperiod of relatively low rates.

Closed-End Funds. Your portfolio may investin shares of closed-end investment companies.Closed-end funds are subject to various risks,including but not limited to management’s abil-ity to meet the closed-end fund’s investmentobjective including when the underlying securi-ties are redeemed or sold, risks associated withthe use of leverage and borrowing and risks asso-ciated with shares of the fund trading at adiscount or premium to the fund’s net assetvalue. You should understand the section titled“Understanding Your Investment—Closed-EndFunds” before you invest.

Non-Diversification Risk. Certain funds heldby your trust may be classified as “non-diversified”. Such funds may be more exposed tothe risks associated with and developmentsaffecting an individual issuer, industry and/orasset class than a fund that invests more widely.

Business Development Company Risk. Cer-tain funds held by your trust may invest inbusiness development companies (“BDCs”).BDCs are closed-end investment companies thathave elected to be treated as business develop-ment companies under the Investment CompanyAct of 1940. BDCs are required to hold at least70% of their investments in eligible assets whichinclude, among other things, (i) securities of eli-gible portfolio companies (generally, domesticcompanies that are not investment companies


and that cannot have a class of securities listedon a national securities exchange or have securi-ties that are marginable that are purchased fromthat company in a private transaction), (ii) secu-rities received by the BDC in connection withits ownership of securities of eligible portfoliocompanies, or (iii) cash, cash items, governmentsecurities, or high quality debt securitiesmaturing one year or less from the time ofinvestment. BDCs’ ability to grow and theiroverall financial condition is impacted signifi-cantly by their ability to raise capital. In additionto raising capital through the issuance of com-mon stock, BDCs may engage in borrowing.This may involve using revolving credit facilities,the securitization of loans through separatewholly-owned subsidiaries and issuing of debtand preferred securities. BDCs are less restrictedthan other closed-end funds as to the amount ofdebt they can have outstanding. These borrow-ings, also known as leverage, magnify thepotential for gain or loss on amounts investedand, accordingly, the risks associated with invest-ing in BDC securities. While the value of aBDC’s assets increases, leveraging would causethe net value per share of BDC common stockto increase more sharply than it would have hadsuch BDC not leveraged. However, if the valueof a BDC’s assets decreases, leveraging wouldcause net asset value to decline more sharplythan it otherwise would have had such BDC notleveraged. In addition to decreasing the value ofa BDC’s common stock, it could also adverselyimpact a BDC’s ability to make dividend pay-ments. A BDC’s credit rating may change overtime which could adversely affect its ability toobtain additional credit and/or increase the costof such borrowing. Agreements governing aBDC’s credit facilities and related funding andservice agreements may contain various covenantsthat limit the BDC’s discretion in operating itsbusiness along with other limitations. Anydefaults may restrict the BDC’s ability to manageassets securing related assets, which may adverselyimpact the BDC’s liquidity and operations.BDCs may enter into hedging transaction andutilize derivative instruments such as forward

contracts, options and swaps. Unanticipatedmovements and improper correlation of hedginginstruments may prevent a BDC from hedgingagainst exposure to risk of loss. BDCs may issueoptions, warrants, and rights to convert to votingsecurities to its officers, employees and boardmembers. Any issuance of derivative securitiesrequires the approval of the company’s board ofdirectors and authorization by the company’sshareholders. A BDC may operate a profit-sharing plan for its employees, subject to certainrestrictions.

BDC investments are frequently not publiclytraded and, as a result, there is uncertainty as tothe value and liquidity of those investments.BDCs may use independent valuation firms tovalue their investments and such valuations maybe uncertain, be based on estimates and/or differmaterially from that which would have been usedif a ready market for those investments existed.The value of a BDC could be adversely affectedif its determinations regarding the fair value ofinvestments was materially higher than the valuerealized upon sale of such investments. Due tothe relative illiquidity of certain BDC invest-ments, if a BDC is required to liquidate all or aportion of its portfolio quickly, it may realizesignificantly less than the value at which suchinvestments are recorded. Further restrictionsmay exist on the ability to liquidate certain assetsto the extent that subsidiaries or related partieshave material non-public information regardingsuch assets. BDCs are required to make availablesignificant managerial assistance to their portfoliocompanies. Significant managerial assistancerefers to any arrangement whereby a BDC pro-vides significant guidance and counsel concerningthe management, operations, or business objec-tives and policies of a portfolio company.Examples of such activities include arrangingfinancing, managing relationships with financingsources, recruiting management personnel, andevaluating acquisition and divestiture opportuni-ties. BDCs are frequently externally managed byan investment adviser which may also providethis external managerial assistance to portfolio


companies. Such investment adviser’s liabilitymay be limited under its investment advisoryagreement, which may lead such investmentadviser to act in a riskier manner than it wouldwere it investing for its own account. Suchinvestment advisers may be entitled to incentivecompensation which may cause such adviser tomake more speculative and riskier investmentsthan it would if investing for its own account.Such compensation may be due even in the caseof declines to the value of a BDC’s investments.

BDCs frequently have high expenses whichmay include, but are not limited to, the paymentof management fees, administration expenses,taxes, interest payable on debt, governmentalcharges, independent director fees and expenses,valuation expenses, and fees payable to third par-ties relating to or associated with makinginvestments. If your trust invests in BDCs, thenyour trust will indirectly bear these expenses.These expenses may fluctuate significantly overtime. If a BDC fails to maintain its status as aBDC it may be regulated as a closed-end fundwhich would subject such BDC to additionalregulatory restrictions and significantly decreaseits operating flexibility. In addition, such failurecould trigger an event of default under certainoutstanding indebtedness which could have amaterial adverse impact on its business.

Investment in Other Investment Companies.As with other investments, investments in otherinvestment companies are subject to market andselection risk. In addition, if/when your trustacquires shares of investment companies share-holders bear both their proportionate share offees and expenses in your trust and, indirectly,the expenses of the underlying investment com-panies. Investment companies’ expenses are subjectto the risk of fluctuation including in response tofluctuation in a fund’s assets. Accordingly, a fund’sactual expenses may vary from what is indicated atthe time of investment by your trust. There arecertain regulatory limitations on the ability of yourtrust to hold other investment companies whichmay impact your trust’s ability to invest certainfunds, may impact the weighting of a fund in your

trust’s portfolio and may impact your trust’s abilityto issue additional units in the future.

Sector Concentration Risk. Sector concentra-tion risk is the risk that the value of your trust ismore susceptible to fluctuations based on factorsthat impact a particular sector because the expo-sure to such sectors through the securities heldby your trust or through the securities in thefunds held by your trust are concentrated withina particular sector. A portfolio “concentrates” in asector when securities in a particular sector makeup 25% or more of the portfolio. Refer to the“Principal Risks” in the “Investment Summary”section for your trust in this prospectus for sectorconcentrations.

Your trust may invest significantly in securi-ties of communication services companies.General risks of communication services compa-nies include rapidly changing technology, rapidproduct obsolescence, loss of patent protection,cyclical market patterns, evolving industry stan-dards and frequent new product introductions.Certain communication companies are subject tosubstantial governmental regulation, whichamong other things, regulates permitted rates ofreturn and the kinds of services that a companymay offer. Media and entertainment companiesare subject to changing demographics, consumerpreferences and changes in the way people com-municate and access information andentertainment content. Certain of these companiesmay be particularly susceptible to cybersecuritythreats, which could have an adverse effect on theirbusiness. Companies in this sector are subject tofierce competition for market share from existingcompetitors and new market entrants. Such com-petitive pressures are intense and communicationstocks can experience extreme volatility.

Companies in the communication sectormay encounter distressed cash flows and heavydebt burdens due to the need to commit sub-stantial capital to meet increasing competitionand research and development costs. Technologi-cal innovations may also make the existingproducts and services of communication compa-


nies obsolete. In addition, companies in thissector can be impacted by a lack of investor orconsumer acceptance of new products, changingconsumer preferences and lack of standardizationor compatibility with existing technologies mak-ing implementation of new products more difficult.

Your trust may invest significantly in securi-ties issued by companies in the financials sector.Any negative impact on this sector will have agreater impact on the value of units than on aportfolio diversified over several sectors. Youshould understand the risks of this sector beforeyou invest. Companies in the financials sectormay include banks and their holding companies,finance companies, investment managers, broker-dealers, insurance and reinsurance companies andmortgage real estate investment trusts (“REITs”).Banks and their holding companies are especiallysubject to the adverse effects of economic reces-sion; volatile interest rates; portfolioconcentrations in geographic markets and incommercial and residential real estate loans; andcompetition from new entrants in their fields ofbusiness. In addition, banks and their holdingcompanies are extensively regulated at both thefederal and state level and may be adverselyaffected by increased regulations. Banks faceincreased competition from nontraditional lend-ing sources as regulatory changes permit newentrants to offer various financial products. Tech-nological advances allow these nontraditionallending sources to cut overhead and permit themore efficient use of customer data. Banks arealready facing tremendous pressure from mutualfunds, brokerage firms and other providers in thecompetition to furnish services that were tradi-tionally offered by banks.

Companies engaged in investment manage-ment and broker-dealer activities are subject tovolatility in their earnings and share prices thatoften exceeds the volatility of the equity marketin general. Adverse changes in the direction ofthe stock market, investor confidence, equitytransaction volume, the level and direction ofinterest rates and the outlook of emerging mar-kets could adversely affect the financial stability,

as well as the stock prices, of these companies.Additionally, competitive pressures, includingincreased competition with new and existingcompetitors, the ongoing commoditization oftraditional businesses and the need for increasedcapital expenditures on new technology couldadversely impact the profit margins of companiesin the investment management and brokerageindustries. Companies involved in investmentmanagement and broker-dealer activities are alsosubject to extensive regulation by governmentagencies and self-regulatory organizations, andchanges in laws, regulations or rules, or in theinterpretation of such laws, regulations and rulescould adversely affect the stock prices of suchcompanies.

Companies involved in the insurance, rein-surance and risk management industryunderwrite, sell or distribute property, casualtyand business insurance. Many factors affectinsurance, reinsurance and risk managementcompany profits, including interest rate move-ments, the imposition of premium rate caps, amisapprehension of the risks involved in givenunderwritings, competition and pressure to com-pete globally, weather catastrophes or otherdisasters and the effects of client mergers.Already extensively regulated, insurance compa-nies’ profits may be adversely affected byincreased government regulations or tax lawchanges.

Mortgage REITs engage in financing realestate, purchasing or originating mortgages andmortgage-backed securities and earning incomefrom the interest on these investments. SuchREITs face risks similar to those of other finan-cial firms, such as changes in interest rates,general market conditions and credit risk, inaddition to risks associated with an investment inreal estate. Risk associated with real estate invest-ments include, among other factors, changes ingeneral U.S., global and local economic condi-tions, declines in real estate values, changes inthe financial health of tenants, overbuilding andincreased competition for tenants, oversupply ofproperties for sale, changing demographics,


changes in interest rates, tax rates and otheroperating expenses, changes in government regu-lations, faulty construction and the ongoing needfor capital improvements, regulatory and judicialrequirements including relating to liability forenvironmental hazards, changes in neighborhoodvalues and buyer demand, and the unavailabilityof construction financing or mortgage loans atrates acceptable to developers.

The financial services sector was adverselyaffected by global developments over the lastseveral years stemming from the financial crisisincluding recessionary conditions, deteriorationin the credit markets and recurring concerns oversovereign debt. These events led to considerablewrite-downs in the values of many assets held byfinancial services companies and a tightening ofcredit markets that was marked by a generalunwillingness of many entities to extend credit.These factors caused a significant need for manyfinancial services companies to raise capital tomeet obligations and to satisfy regulatory andcontractual capital requirements. Many well-established financial services companies wereforced to seek additional capital through issu-ances of new preferred or common equity andcertain companies were forced to agree to beacquired by other companies (or sell some or allof their assets to other companies). In some casesgovernment assistance, guarantees or direct par-ticipation in investments or acquisitions werenecessary to facilitate these transactions. In addi-tion, concerns regarding these issues and theirpotential negative impact to the U.S. and globaleconomies resulted in extreme volatility in securi-ties prices and uncertain market conditions.

In response to these issues, governmentauthorities in the U.S. and other countries haveinitiated and may continue to engage in adminis-trative and legislative action, including theDodd-Frank Wall Street Reform and ConsumerProtection Act and resulting rulemaking. Thesegovernment actions include, but are not limitedto, restrictions on investment activities; increasedoversight, regulation and involvement in financialservices company practices; adjustments to capital

requirements; the acquisition of interests in andthe extension of credit to private entities; andincreased investigation efforts into the actions ofcompanies and individuals in the financial serviceindustry. No one can predict any action thatmight be taken or the effect any action or inac-tion will have. It is possible that any actionstaken by government authorities will not addressor help improve the state of these difficulties asintended. No one can predict the impact thatthese difficulties will have on the economy, gen-erally or financial services companies. Thesedifficulties and corresponding government actionor inaction may have far reaching consequencesand your investment may be adversely affectedby such developments.

Your trust may invest significantly in securi-ties of companies in the information technologysector. Technology companies are generally sub-ject to the risks of rapidly changing technologies;short product life cycles; fierce competition;aggressive pricing; frequent introduction of newor enhanced products; the loss of patent, copy-right and trademark protections; cyclical marketpatterns; evolving industry standards; and fre-quent new product introductions. Technologycompanies may be smaller and less experiencedcompanies, with limited product lines, marketsor financial resources. Technology companystocks may experience extreme price and volumefluctuations that are often unrelated to theiroperating performance and may experience sig-nificant declines in their share values.

Foreign Issuer Risk. Your trust and/or certainfunds held by your trust may invest in thesecurities of foreign issuers. An investment insecurities of foreign issuers involves certain risksthat are different in some respects from aninvestment in securities of domestic issuers.These include risks associated with future politi-cal and economic developments, internationaltrade conditions, foreign withholding taxes,liquidity concerns, currency fluctuations, volatil-ity, restrictions on foreign investments andexchange of securities, potential for expropriationof assets, confiscatory taxation, difficulty in


obtaining or enforcing a court judgment, poten-tial inability to collect when a company goesbankrupt and economic, political or social insta-bility. Moreover, individual foreign economiesmay differ favorably or unfavorably from theU.S. economy for reasons including differencesin growth of gross domestic product, ratesof inflation, capital reinvestment, resources, self-sufficiency and balance of payments positionsThere may be less publicly available informationabout a foreign issuer than is available from adomestic issuer as a result of different account-ing, auditing and financial reporting standards.Some foreign markets are less liquid than U.S.markets which could cause securities to bebought at a higher price or sold at a lower pricethan would be the case in a highly liquid market.

Brokerage and other transaction costs onforeign exchanges are often higher than in theU.S. and there is generally less governmentalsupervision of exchanges, brokers and issuers inforeign countries. The increased expense ofinvesting in foreign markets may reduce theamount an investor can earn on its investmentsand typically results in a higher operatingexpense ratio than investments in only domesticsecurities. Custody of certain securities may bemaintained by a global custody and clearinginstitution. Settlement and clearance proceduresin certain foreign markets differ significantlyfrom those in the U.S. Foreign settlement andclearance procedures and trade regulations alsomay involve certain risks (such as delays inpayment for or delivery of securities) not typi-cally associated with the settlement of domesticsecurities. Round lot trading requirements existin certain foreign securities markets which couldcause the proportional composition and diversifi-cation of your trust’s and/or a fund’s portfolio tovary when your trust or a fund buys or sellssecurities.

Currency Risk. Because securities of foreignissuers not listed on a U.S. securities exchangegenerally pay income and trade in foreign cur-rencies, the U.S. dollar value of these securitiesand income will vary with fluctuations in foreign

exchange rates. Most foreign currencies have fluc-tuated widely in value against the U.S. dollar forvarious economic and political reasons. Generally,when the U.S. dollar rises in value against a for-eign currency, a security denominated in thatcurrency loses value because the currency isworth fewer U.S. dollars. Conversely, when theU.S. dollar decreases in value against a foreigncurrency, a security denominated in that currencygains value because the currency is worth moreU.S. dollars. This risk, generally known as “cur-rency risk,” means that a strong U.S. dollar willreduce returns for U.S. investors while a weakU.S. dollar will increase those returns.

Depositary Receipts Risk. Your trust and/orcertain funds held by your trust may invest instocks held in the form of depositary receipts.Depositary receipts represent receipts for foreigncommon stock deposited with a custodian(which may include the trustee of your trust).Depositary receipts generally involve the sametypes of risks as foreign common stock helddirectly. Some depositary receipts may experienceless liquidity than the underlying common stockstraded in their home market. Certain depositaryreceipts are unsponsored (i.e. issued without theparticipation or involvement of the issuer of theunderlying security). The issuers of unsponsoreddepositary receipts are not obligated to discloseinformation that may be considered material inthe U.S. Therefore, there may be lessinformation available regarding these issuers and,as a result, there may not be a correlationbetween certain information impacting a securityand the market value of the depositary receipts.

Emerging Markets. Your trust and/or certainfunds held by your trust may invest in certainsecurities issued by entities located in emergingmarkets. Emerging markets are generally definedas countries in the initial states of their industri-alization cycles with low per capita income. Themarkets of emerging markets countries are gener-ally more volatile than the markets of developedcountries with more mature economies. All ofthe risks of investing in foreign securities


described above are heightened by investing inemerging markets countries.

Supranational Entities’ Securities. Certainfunds held by your trust may invest in obliga-tions issued by supranational entities such as theInternational Bank for Reconstruction andDevelopment (the World Bank). The governmentmembers, or “stockholders,” usually make initialcapital contributions to supranational entities andin many cases are committed to make additionalcapital contributions if a supranational entity isunable to repay its borrowings. There is no guar-antee that one or more stockholders of asupranational entity will continue to make anynecessary additional capital contributions. If suchcontributions are not made, the entity may beunable to pay interest or repay principal on itsdebt securities, and a fund may lose money onsuch investments.

Small and Mid-Size Companies. Your trustand/or certain funds held by your trust mayinvest in securities issued by small and mid-sizecompanies. The share prices of these companiesare often more volatile than those of larger com-panies as a result of several factors common tomany such issuers, including limited trading vol-umes, products or financial resources,management inexperience and less publicly avail-able information. In particular, companies withsmaller capitalizations may be less financiallysecure, depend on a smaller number of keypersonnel and generally be subject to moreunpredictable price changes than larger, moreestablished companies and the markets as awhole. Smaller capitalization and emerginggrowth companies may be particularly sensitiveto changes in interest rates, borrowing costsand earnings.

Bond Quality Risk. Bond quality risk is therisk that a bond will fall in value if a ratingagency decreases or withdraws the bond’s rating.

Prepayment Risk. When interest rates fall,among other factors, the issuer of a security mayprepay their obligations earlier than expected.Such prepayments will result in early distribu-

tions to a fund holding such security and suchfunds may be unable to reinvest such amounts atthe yields originally invested which couldadversely impact the funds and your trust. Cer-tain bonds held by the funds may include callprovisions which expose such funds and yourtrust to call risk. Call risk is the risk that theissuer prepays or “calls” a bond before its statedmaturity. An issuer might call a bond if interestrates, in general fall and the bond pays a higherinterest rate or if it no longer needs the moneyfor the original purpose. If an issuer calls a bond,a fund holding such bond will receive principalbut future interest distributions will fall. Suchfund might not be able to reinvest this principalat as high a yield. A bond’s call price could beless than the price paid for the bond and couldbe below the bond’s par value. Certain bondsmay also be subject to extraordinary optional ormandatory redemptions if certain events occur,such as certain changes in tax laws, the substan-tial damage or destruction by fire or othercasualty of the project for which the proceeds ofthe bonds were used, and various other events.

Extension Risk. When interest rates rise,among other factors, issues of a security may payoff obligations more slowly than expected caus-ing the value of such obligations to fall.

Market Discount. Certain funds held byyour trust may invest in bonds whose currentmarket values were below the principal value onthe purchase date. A primary reason for the mar-ket value of such bonds being less than theprincipal value is that the interest rate of suchbonds is at a lower rate than the current marketinterest rates for comparable bonds. Bondsselling at market discounts tend to increase inmarket value as they approach maturity.

Premium Bonds. Certain funds held by yourtrust may invest in bonds whose current marketvalues were above the principal value on the pur-chase date. A primary reason for the marketvalue of such bonds being higher than the prin-cipal value is that the interest rate of such bondsis at a higher rate than the current market inter-


est rates for comparable bonds. The currentreturns of bonds trading at a market premiumare initially higher than the current returns ofcomparable bonds issued at currently prevailinginterest rates because premium bonds tend todecrease in market value as they approachmaturity when the principal value becomes pay-able. Because part of the purchase price iseffectively returned not at maturity but throughcurrent income payments, early redemption of apremium bond at par or any other amountbelow the purchase price will result in a reduc-tion in yield. Redemption pursuant to callprovisions generally will, and redemption pursu-ant to sinking fund provisions may occur attimes when the bonds have a market value thatrepresents a premium over par or, for originalissue discount securities, a premium over theaccreted value.

Municipal Bonds. Certain funds held byyour trust may invest in municipal bonds.Municipal bonds are debt obligations issued bystates or by political subdivisions or authoritiesof states. Municipal bonds are typically desig-nated as general obligation bonds, which aregeneral obligations of a governmental entity thatare backed by the taxing power of such entity, orrevenue bonds, which are payable from theincome of a specific project or authority and arenot supported by the issuer’s power to levy taxes.Municipal bonds are long-term fixed rate debtobligations that generally decline in value withincreases in interest rates, when an issuer’sfinancial condition worsens or when the ratingon a bond is decreased. Many municipal bondsmay be called or redeemed prior to their statedmaturity, an event which is more likely to occurwhen interest rates fall. In such an occurrence, afund may not be able to reinvest the money itreceives in other bonds that have as high a yieldor as long a maturity. Many municipal bonds aresubject to continuing requirements as to theactual use of the bond proceeds or manner ofoperation of the project financed from bond pro-ceeds that may affect the exemption of intereston such bonds from federal income taxation.

The market for municipal bonds is generally lessliquid than for other securities and therefore theprice of municipal bonds may be more volatileand subject to greater price fluctuations thansecurities with greater liquidity. In addition, anissuer’s ability to make income distributions gen-erally depends on several factors including thefinancial condition of the issuer and generaleconomic conditions. Any of these factors maynegatively impact the price of municipal bondsheld by a fund and would therefore impactthe price of both the fund shares and yourtrust units. The COVID-19 pandemic has andcontinues to adversely affect the financial condi-tion of many states and political subdivisionsboth through costs associated with combattingthe COVID-19 pandemic and by negativelyimpacting tax revenue streams. The full impactof the COVID-19 pandemic on state and politi-cal subdivisions’ ability to make payments ondebt obligations is impossible to predict, butcould negatively impact the value of bonds, theability of state and political subdivisions to makepayments when due and the performance ofyour trust.

Sovereign Debt. Certain funds held by yourtrust may invest in sovereign debt. Sovereigndebt instruments are subject to the risk that agovernmental entity may delay or refuse to payinterest or repay principal on its sovereign debt,due, for example, to cash flow problems, insuffi-cient foreign currency reserves, politicalconsiderations, the relative size of the govern-mental entity’s debt position in relation to theeconomy or the failure to put in place requiredeconomic reforms. If a governmental entitydefaults, it may ask for more time in which topay or for further loans. There is no legal processfor collecting sovereign debt that a governmentdoes not pay nor are there bankruptcy proceed-ings through which all or part of the sovereigndebt that a governmental entity has not repaidmay be collected.

U.S. Government Obligations Risk. Certainfunds held by your trust may invest inobligations of the U.S. Government. Obligations


of U.S. Government agencies, authorities,instrumentalities and sponsored enterprises havehistorically involved little risk of loss of principalif held to maturity. However, not all U.S. Gov-ernment securities are backed by the full faithand credit of the United States. Obligations ofcertain agencies, authorities, instrumentalities andsponsored enterprises of the U.S. Governmentare backed by the full faith and credit of theUnited States (e.g., the Government NationalMortgage Association); other obligations arebacked by the right of the issuer to borrow fromthe U.S. Treasury (e.g., the Federal Home LoanBanks) and others are supported by the discre-tionary authority of the U.S. Government topurchase an agency’s obligations. Still others arebacked only by the credit of the agency, author-ity, instrumentality or sponsored enterpriseissuing the obligation. No assurance can be giventhat the U.S. Government would provide finan-cial support to any of these entities if it is notobligated to do so by law.

U.S. Treasury Obligations. Certain fundsheld by your trust may invest in U.S. Treasuryobligations. U.S. Treasury obligations are directobligations of the United States which are backedby the full faith and credit of the United States.The value of U.S. Treasury obligations will beadversely affected by decreases in bond pricesand increases in interest rates.

High Yield or “Junk” Securities. Certainfunds held by your trust may invest in high yieldsecurities or unrated securities. High yield, highrisk securities are subject to greater market fluc-tuations and risk of loss than securities withhigher investment ratings. The value of thesesecurities will decline significantly with increasesin interest rates, not only because increases inrates generally decrease values, but also becauseincreased rates may indicate an economic slow-down. An economic slowdown, or a reduction inan issuer’s creditworthiness, may result in theissuer being unable to maintain earnings at alevel sufficient to maintain interest and principalpayments. High yield or “junk” securities, thegeneric names for securities rated below “BBB”

by Standard & Poor’s or “Baa” by Moody’s, arefrequently issued by corporations in the growthstage of their development or by establishedcompanies who are highly leveraged or whoseoperations or industries are depressed. Securitiesrated below BBB or Baa are considered specula-tive as these ratings indicate a quality of less thaninvestment grade. Because high yield securitiesare generally subordinated obligations and areperceived by investors to be riskier than higherrated securities, their prices tend to fluctuatemore than higher rated securities and are affectedby short-term credit developments to a greaterdegree. The market for high yield securities issmaller and less liquid than that for investmentgrade securities. High yield securities are gener-ally not listed on a national securities exchangebut trade in the over-the-counter markets. Dueto the smaller, less liquid market for high yieldsecurities, the bid-offer spread on such securitiesis generally greater than it is for investment gradesecurities and the purchase or sale of such securi-ties may take longer to complete.

Senior Loans. Certain funds held by yourtrust may invest in senior loans and similartransactions. Senior loans are issued by banks,other financial institutions and other investors tocorporations, partnerships, limited liability com-panies and other entities to finance leveragedbuyouts, recapitalizations, mergers, acquisitions,stock repurchases, debt refinancings and, to alesser extent, for general operating and other pur-poses. An investment by the funds in seniorloans and similar transactions involves risk thatthe borrowers under such transactions maydefault on their obligations to pay principal orinterest when due. Although senior loans may besecured by specific collateral, there can be noassurance that liquidation of collateral wouldsatisfy the borrower’s obligation in the event ofnon-payment or that such collateral could bereadily liquidated. Senior loans are typicallystructured as floating rate instruments in whichthe interest rate payable on the obligation fluctu-ates with interest rate changes. As a result, theyield on funds investing in senior loans will gen-


erally decline in a falling interest rateenvironment and increase in a rising interest rateenvironment. Additionally, senior loans generallyhave floating interest rates that may be tied tothe London Inter-Bank Offered Rate (“LIBOR”),which is currently set to be phased out by 2021.The potential phase out of LIBOR couldadversely affect the value of investments tied toLIBOR. Senior loans are generally below invest-ment grade quality and may be unrated at thetime of investment. Senior loans may not fallwithin the definition of “securities” and are gen-erally not registered with the SEC and thereforean investor in senior loans may not receive theprotection of the federal securities laws. Seniorloans are also generally not registered with statesecurities commissions and are generally notlisted on any securities exchange. In addition, theamount of public information available on seniorloans is generally less extensive than that avail-able for other types of securities.

Convertible Securities. Certain funds held byyour trust may invest in convertible securities.Convertible securities generally offer lower inter-est or dividend yields than non-convertible fixedincome securities of similar credit quality becauseof the potential for capital appreciation. Themarket values of convertible securities tend todecline as interest rates increase and, conversely,to increase as interest rates decline. However, aconvertible security’s market value also tends toreflect the market price of the common stock ofthe issuing company, particularly when that stockprice is greater than the convertible security’s“conversion price.” The conversion price isdefined as the predetermined price or exchangeratio at which the convertible security can beconverted or exchanged for the underlying com-mon stock. As the market price of theunderlying common stock declines below theconversion price, the price of the convertiblesecurity tends to be increasingly influencedmore by the yield of the convertible security.Thus, it may not decline in price to the sameextent as the underlying common stock. In theevent of a liquidation of the issuing company,

holders of convertible securities would be paidbefore that company’s common stockholders.Consequently, an issuer’s convertible securitiesgenerally entail less risk than its common stock.However, convertible securities fall below debtobligations of the same issuer in order of prefer-ence or priority in the event of a liquidation andare typically unrated or rated lower than suchdebt obligations.

Mandatory convertible securities are distin-guished as a subset of convertible securitiesbecause the conversion is not optional and theconversion price at maturity is based solely uponthe market price of the underlying commonstock, which may be significantly less than par orthe price (above or below par) paid. For thesereasons, the risks associated with investing inmandatory convertible securities most closelyresemble the risks inherent in common stocks.Mandatory convertible securities customarily paya higher coupon yield to compensate for thepotential risk of additional price volatility andloss upon conversion. Because the market priceof a mandatory convertible security increasinglycorresponds to the market price of its underlyingcommon stock, as the convertible securityapproaches its conversion date, there can be noassurance that the higher coupon will compen-sate for a potential loss.

Floating Rate Instruments. Certain fundsheld by your trust may invest in floatingrate securities. A floating rate security is aninstrument in which the interest rate payable onthe obligation fluctuates on a periodic basisbased upon changes in a benchmark, oftenrelated to interest rates. As a result, the yield onsuch a security will generally decline with nega-tive changes to the benchmark, causing yourtrust to experience a reduction in the income itreceives from such securities. A sudden and sig-nificant increase in the applicable benchmarkmay increase the risk of payment defaults andcause a decline in the value of the security.

Asset-Backed Securities. Certain funds heldby your trust may invest in asset-backed securi-


ties (“ABS”). ABS are securities backed by poolsof loans or other receivables. ABS are createdfrom many types of assets, including auto loans,credit card receivables, home equity loans, andstudent loans. ABS are issued through specialpurpose vehicles that are bankruptcy remotefrom the issuer of the collateral. The creditquality of an ABS transaction depends on theperformance of the underlying assets. To protectABS investors from the possibility that someborrowers could miss payments or even defaulton their loans, ABS include various forms ofcredit enhancement. Some ABS, particularlyhome equity loan transactions, are subject tointerest rate risk and prepayment risk. A changein interest rates can affect the pace of paymentson the underlying loans, which in turn, affectstotal return on the securities. ABS also carrycredit or default risk. If many borrowers on theunderlying loans default, losses could exceed thecredit enhancement level and result in losses toinvestors in an ABS transaction. Finally, ABShave structure risk due to a unique characteristicknown as early amortization, or early payout,risk. Built into the structure of most ABS aretriggers for early payout, designed to protectinvestors from losses. These triggers are unique toeach transaction and can include: a big rise indefaults on the underlying loans, a sharp drop inthe credit enhancement level, or even thebankruptcy of the originator. Once early amorti-zation begins, all incoming loan payments (afterexpenses are paid) are used to pay investors asquickly as possible based upon a predeterminedpriority of payment.

Mortgage-Backed Securities. Certain fundsheld by your trust may invest in mortgage-backed securities. Mortgage-backed securities area type of ABS representing direct or indirect par-ticipations in, or are secured by and payablefrom, mortgage loans secured by real propertyand can include single- and multi-class pass-through securities and collateralized mortgageobligations. Mortgage-backed securities are basedon different types of mortgages, including thoseon commercial real estate or residential proper-

ties. These securities often have stated maturitiesof up to thirty years when they are issued,depending upon the length of the mortgagesunderlying the securities. In practice, however,unscheduled or early payments of principal andinterest on the underlying mortgages may makethe securities’ effective maturity shorter than this.Rising interest rates tend to extend the durationof mortgage-backed securities, making themmore sensitive to changes in interest rates, andmay reduce the market value of the securities. Inaddition, mortgage-backed securities are subjectto prepayment risk, the risk that borrowers maypay off their mortgages sooner than expected,particularly when interest rates decline. This canreduce the funds’, and therefore your trust’s,returns because the funds may have to reinvestthat money at lower prevailing interest rates.

Restricted Securities. Certain funds held byyour trust may invest in securities that may onlybe resold pursuant to Rule 144A under the Secu-rities Act of 1933. Such securities may not bereadily marketable. Restricted securities may besold only to purchasers meeting certain eligibilityrequirements in privately negotiated transactionsor in a public offering with respect to whicha registration statement is in effect under theSecurities Act. Where registration of such securi-ties under the Securities Act is required, a fundmay be obligated to pay all or part of theregistration expenses and a considerable periodmay elapse between the time of the decision tosell and the time the fund may be permitted tosell a security under an effective registrationstatement. If, during such a period, adverse mar-ket conditions were to develop, the fund mightobtain a less favorable price than that which pre-vailed when it decided to sell.

Covered Call Option Strategies. Certainfunds held by your trust may invest using cov-ered call option strategies. You should understandthe risks of these strategies before you invest. Inemploying a covered call strategy, a closed-endfund will generally write (sell) call options on asignificant portion of the fund’s managed assets.These call options will give the option holder the


right, but not the obligation, to purchase asecurity from the fund at the strike price on orprior to the option’s expiration date. The abilityto successfully implement the fund’s investmentstrategy depends on the fund adviser’s ability topredict pertinent market movements, whichcannot be assured. Thus, the use of options mayrequire a fund to sell portfolio securities at inop-portune times or for prices other than currentmarket values, may limit the amount ofappreciation the fund can realize on an invest-ment, or may cause the fund to hold a securitythat it might otherwise sell. The writer (seller) ofan option has no control over the time when itmay be required to fulfill its obligation as awriter (seller) of the option. Once an optionwriter (seller) has received an exercise notice, itcannot effect a closing purchase transaction inorder to terminate its obligation under theoption and must deliver the underlying securityat the exercise price. As the writer (seller) of acovered call option, a fund forgoes, during theoption’s life, the opportunity to profit fromincreases in the market value of the securityunderlying the call option above the sum of thepremium and the strike price of the call option,but has retained the risk of loss should the priceof the underlying security decline. The value ofthe options written (sold) by a fund, which willbe marked-to-market on a daily basis, will beaffected by changes in the value and dividendrates of the underlying securities, an increase ininterest rates, changes in the actual or perceivedvolatility of securities markets and the underlyingsecurities and the remaining time to the options’expiration. The value of the options may also beadversely affected if the market for the optionsbecomes less liquid or smaller.

An option is generally considered “covered”if a fund owns the security underlying the calloption or has an absolute and immediate right toacquire that security without additional cash con-sideration (or, if required, liquid cash or otherassets are segregated by the fund) upon conver-sion or exchange of other securities held by thefund. In certain cases, a call option may also be

considered covered if a fund holds a call optionon the same security as the call option written(sold) provided that certain conditions are met.By writing (selling) covered call options, a fundgenerally seeks to generate income, in the formof the premiums received for writing (selling) thecall options. Investment income paid by a fundto its shareholders (such as your trust) may bederived primarily from the premiums it receivesfrom writing (selling) call options and, to a lesserextent, from the dividends and interest it receivesfrom the equity securities or other investmentsheld in the fund’s portfolio and short-term gainsthereon. Premiums from writing (selling) calloptions and dividends and interest paymentsmade by the securities in a fund’s portfolio canvary widely over time.

Preferred Securities. Certain funds held byyour trust may invest in preferred securitiesincluding preferred stocks, trust preferred securi-ties, subordinated or junior notes and debenturesand other similarly structured securities. Preferredsecurities combine some of the characteristics ofcommon stocks and bonds. Preferred securitiesgenerally pay fixed or adjustable rate income inthe form of dividends or interest to investors.Preferred securities generally have preference overcommon stock in the payment of income andthe liquidation of a company’s assets. However,preferred securities are typically subordinated tobonds and other debt instruments in a compa-ny’s capital structure and therefore will be subjectto greater credit risk than those debt instru-ments. Because of their subordinated position inthe capital structure of an issuer, the ability todefer dividend or interest payments for extendedperiods of time without triggering an event ofdefault for the issuer, and certain other features,preferred securities are often treated as equity-likeinstruments by both issuers and investors, astheir quality and value are heavily dependent onthe profitability and cash flows of the issuerrather than on any legal claims to specific assets.Most retail-available preferred securities have a$25 par (or “face”) value but can also have parvalues of $50 or $1,000. Preferred securities are


often callable at their par value at some point intime after their original issuance date. Incomepayments on preferred securities are generallystated as a percentage of these par valuesalthough certain preferred securities provide forvariable or additional participation payments.

While some preferred securities are issuedwith a final maturity date, others are perpetualin nature. In certain instances, a final maturitydate may be extended and/or the final paymentof principal may be deferred at the issuer’soption for a specified time without triggering anevent of default for the issuer. Preferred securitiesgenerally may be subject to provisions that allowan issuer, under certain conditions, to skip(“non-cumulative” preferred securities) or defer(“cumulative” preferred securities) distributions.The issuer of a non-cumulative preferred securitydoes not have an obligation to make up anyarrearages to holders of such securities and non-cumulative preferred securities can deferdistributions indefinitely. Cumulative preferredsecurities typically contain provisions that allowan issuer, at its discretion, to defer distributionspayments for up to 10 years. If a preferredsecurity is deferring its distribution, investorsmay be required to recognize income for tax pur-poses while they are not receiving any income. Incertain circumstances, an issuer of preferred secu-rities may redeem the securities during their life.For certain types of preferred securities, aredemption may be triggered by a change in fed-eral income tax or securities laws. As with callprovisions, a redemption by the issuer may nega-tively impact the return of the security. Preferredsecurity holders generally have no voting rightswith respect to the issuing company except invery limited situations, such as if the issuer failsto make income payments for a specified periodof time or if a declaration of default occurs andis continuing. Preferred securities may be sub-stantially less liquid than many other securities,such as U.S. government securities or commonstock. The federal income tax treatment of pre-ferred securities may not be clear or may besubject to recharacterization by the Internal Rev-

enue Service. Issuers of preferred securities maybe in industries that are heavily regulated andthat may receive government funding. The valueof preferred securities issued by these companiesmay be affected by changes in governmentpolicy, such as increased regulation, ownershiprestrictions, deregulation or reducedgovernment funding.

Preferred stocks are a category of preferredsecurities that are typically considered equitysecurities and make income payments from anissuer’s after-tax profits that are treated asdividends for tax purposes. While they generallyprovide for specified income payments as a per-centage of their par value, these paymentsgenerally do not carry the same set of guaranteesafforded to bondholders and have higher risks ofnon-payment or deferral.

Certain preferred securities may be issued bytrusts or other special purpose entities establishedby operating companies, and are therefore notdirect obligations of operating companies. At thetime a trust or special purpose entity sells its pre-ferred securities to investors, the trust or specialpurpose entity generally purchases debt of theoperating company with terms comparable tothose of the trust or special purpose entity secu-rities. The trust or special purpose entity, as theholder of the operating company’s debt, has pri-ority with respect to the operating company’searnings and profits over the operating company’scommon shareholders, but is typically subordi-nated to other classes of the operating company’sdebt. Distribution payments of trust preferredsecurities generally coincide with interest pay-ments on the underlying obligations.Distributions from trust preferred securities aretypically treated as interest rather than dividendsfor federal income tax purposes and therefore, arenot eligible for the dividends-received deductionor the lower federal tax rates applicable to quali-fied dividends. Trust preferred securities generallyinvolve the same risks as traditional preferredstocks but are also subject to unique risks,including risks associated with income paymentsonly being made if payments on the underlying


obligations are made. Typically, a trust preferredsecurity will have a rating that is below that ofits corresponding operating company’s seniordebt securities due to its subordinated nature.

Subordinated or junior notes or debenturesare securities that generally have priority to com-mon stock and other preferred securities in acompany’s capital structure but are subordinatedto other bonds and debt instruments in a com-pany’s capital structure. As a result, thesesecurities will be subject to greater credit riskthan those senior debt instruments and will notreceive income payments or return of principalin the event of insolvency until all obligations onsenior debt instruments have been made. Distri-butions from these securities are typically treatedas interest rather than dividends for federalincome tax purposes and therefore, are not eli-gible for the dividends-received deduction or thelower federal tax rates applicable to qualifieddividends. Investments in subordinated or juniornotes or debentures also generally involve riskssimilar to risks of other preferred securitiesdescribed above.

Real Estate Related Securities. Your trustand/or certain funds held by your trust mayinvest in securities providing exposure to realestate investments. Risks associated with theownership of real estate include, among otherfactors, changes in general U.S., global and localeconomic conditions, decline in real estate values,changes in the financial health of tenants, over-building and increased competition for tenants,oversupply of properties for sale, changing demo-graphics, changes in interest rates, tax rates andother operating expenses, changes in governmentregulations, faulty construction and the ongoingneed for capital improvements, regulatory andjudicial requirements, including relating to liabil-ity for environmental hazards, changes inneighborhood values and buyer demand, and theunavailability of construction financing or mort-gage loans at rates acceptable to developers.

Real Estate Investment Trusts. Your trustand/or certain funds held by your trust may

invest in securities issued by REITs. Many factorscan have an adverse impact on the performanceof a REIT, including its cash available for distri-bution, the credit quality of the REIT or the realestate industry generally. The success of a REITdepends on various factors, including the occu-pancy and rent levels, appreciation of theunderlying property and the ability to raise rentson those properties. Economic recession, over-building, tax law changes, higher interest rates orexcessive speculation can all negatively impactREITs, their future earnings and share prices.Variations in rental income and space availabilityand vacancy rates in terms of supply anddemand are additional factors affecting real estategenerally and REITs in particular. Propertiesowned by a REIT may not be adequately insuredagainst certain losses and may be subject to sig-nificant environmental liabilities, includingremediation costs. You should also be aware thatREITs may not be diversified and are subject tothe risks of financing projects. The real estateindustry may be cyclical, and, if REIT securitiesare acquired at or near the top of the cycle, thereis increased risk of a decline in value of theREIT securities. At various points in time,demand for certain types of real estate mayinflate the value of real estate. This may increasethe risk of a substantial decline in the value ofsuch real estate and increase the risk of a declinein the value of the securities. REITs are also sub-ject to defaults by borrowers and the market’sperception of the REIT industry generally.Because of their structure, and a current legalrequirement that they distribute at least 90% oftheir taxable income to shareholders annually,REITs require frequent amounts of new funding,through both borrowing money and issuingstock. Thus, REITs historically have frequentlyissued substantial amounts of new equity shares(or equivalents) to purchase or build new proper-ties. This may adversely affect REIT equity sharemarket prices. Both existing and new share issu-ances may have an adverse effect on these pricesin the future, especially if REITs issue stockwhen real estate prices are relatively high andstock prices are relatively low.


Mortgage REITs engage in financing realestate, purchasing or originating mortgages andmortgage-backed securities and earning incomefrom the interest on these investments. Such REITsface risks similar to those of other financial firms,such as changes in interest rates, general marketconditions and credit risk, in addition to risks asso-ciated with an investment in real estate.

MLPs. Your trust and/or certain funds heldby your trust may invest in master limitedpartnerships (“MLPs”). MLPs are limited part-nership or limited liability companies that aregenerally taxed as partnership whose interests aregenerally traded on securities exchanges. An MLPconsists of a general partner and limited partners.The general partner manages the partnership, hasan ownership stake in the partnership and is eli-gible to receive an incentive distribution. Thelimited partners provide capital to the partner-ship, have a limited (if any) role in the operationand management of the partnership and receivecash distributions. Unlike stockholders of acorporation, limited partners do not elect direc-tors annually and generally have the right to voteonly on certain significant events, such as merg-ers, a sale of substantially all of the partnershipassets, removal of the general partner or materialamendments to the partnership agreement. Lim-ited partners generally have first right to aminimum quarterly distribution prior to distri-butions to the convertible subordinated unitholders or the general partner (including incentivedistributions) and typically have arrearage rights ifthe minimum quarterly distribution is not met.Most MLPs generally operate in the energy naturalresources or real estate sector and are subject to therisks generally applicable to companies in thosesectors. Those risks include, but are not limited to,commodity pricing risk, supply and demand risk,depletion risk and exploration risk. MLPs are alsosubject to the risk that authorities could challengethe tax treatment of MLPs for federal income taxpurposes which could have a negative impact onthe after-tax income available for distribution bythe MLPs and/or the value of your trust’s investments.

Derivatives Risk. Certain funds held by yourtrust may engage in transactions in derivatives.Derivatives are subject to counterparty risk whichis the risk that the other party in a transactionmay be unable or unwilling to meet obligationswhen due. Use of derivatives may increase vola-tility of a fund and your trust and reducereturns. Fluctuations in the value of derivativesmay not correspond with fluctuations of underly-ing exposures. Unanticipated market movementscould result in significant losses on derivativepositions including greater losses than amountsoriginally invested and potentially unlimitedlosses in the case of certain derivatives. There areno assurances that there will be a secondary mar-ket available in any derivative position whichcould result in illiquidity and the inability of afund to liquidate or terminate positions as val-ued. Valuation of derivative positions may bedifficult and increase during times of market tur-moil. Certain derivatives may be used as a hedgeagainst other securities positions however hedgingcan be subject to the risk of imperfect alignmentand there are no assurances that a hedge will beachieved as intended which can pose significantloss to a fund and your trust. Recent legislationhas called for significant increases to the regula-tion of the derivatives market. Regulatorychanges and rulemaking is ongoing and the fullimpact may not be known for some time. Thisincreased regulation may make derivatives morecostly, limit the availability of derivatives or oth-erwise adversely affect the value or performanceof derivatives. Examples of increased regulationinclude, but are not limited to the imposition ofclearing and reporting requirements on transac-tions that fall within the definition of “swap” and“security-based swap”, increased recordkeepingand reporting requirements, changing definitionaland registration requirements, and changes to theway that funds’ use of derivatives is regulated.We cannot predict the effects of any new govern-mental regulation that may be implemented onthe ability of a fund to use any financial deriva-tive product, and there can be no assurance thatany new governmental regulation will notadversely affect a fund’s ability to achieve its


investment objective. The federal income taxtreatment of a derivative may not be as favorableas a direct investment in the asset that a deriva-tive provides exposure to which may adverselyimpact the timing, character and amount ofincome a fund realizes from its investment. Thetax treatment of certain derivatives is unsettledand may be subject to future legislation, regula-tion or administrative pronouncements.

Swaps. Certain funds held by your trust mayinvest in swaps. In addition to general risks asso-ciated with derivatives described above, swapagreements involve the risk that the party withwhom a fund has entered into the swap willdefault on its obligation to pay a fund and therisk that a fund will not be able to meet its obli-gations to pay the other party to the agreement.Swaps entered into by a fund may include, butare not limited to, interest rate swaps, totalreturn swaps and/or credit default swaps. In aninterest rate swap transaction, two partiesexchange rights to receive interest payments, suchas exchanging the right to receive floating ratepayments based on a reference interest rate forthe right to receive fixed rate payments. In addi-tion to the general risks associated withderivatives and swaps described above, interestrate swaps are subject to interest rate risk andcredit risk. In a total return swap transaction,one party agrees to pay another party an amountequal to the total return on a reference asset dur-ing a specified period of time in return forperiodic payments based on a fixed or variableinterest rate or on the total return from a differ-ent reference asset. In addition to the generalrisks associated with derivatives and swapsdescribed above, total return swaps could resultin losses if the reference asset does not performas anticipated and these swaps can have thepotential for unlimited losses. In a credit defaultswap transaction, one party makes one or morepayments over the term of the contract to thecounterparty, provided that no event of defaultwith respect to a specific obligation or issuer hasoccurred. In return, upon any event of default,such party would receive from the counterparty a

payment equal to the par (or other agreed-upon)value of such specified obligation. In addition togeneral risks associated with derivatives andswaps described above, credit default swapsinvolve special risks because they are difficult tovalue, are highly susceptible to liquidity andcredit risk, and generally pay a return to theparty that has paid the premium only in theevent of an actual default by the issuer of theunderlying obligation (as opposed to acredit downgrade or other indication of finan-cial difficulty).

Forward Foreign Currency Exchange Con-tracts. Certain funds held by your trust mayengage in forward foreign currency exchangetransactions. Forward foreign exchange transac-tions are contracts to purchase or sell a specifiedamount of a specified currency or multinationalcurrency unit at a price and future date set at thetime of the contract. Forward foreign currencyexchange contracts do not eliminate fluctuationsin the value of non-U.S. securities but ratherallow a fund to establish a fixed rate of exchangefor a future point in time. This strategy can havethe effect of reducing returns and minimizingopportunities for gain.

Indexed and Inverse Securities. Certain fundsheld by your trust may invest in indexed andinverse securities. In addition to general risksassociated with derivatives described above,indexed and inverse securities are subject to riskwith respect to the value of the particular index.These securities are subject to leverage risk andcorrelation risk. Certain indexed and inversesecurities have greater sensitivity to changes ininterest rates or index levels than other securities,and a fund’s investment in such instruments maydecline significantly in value if interest rates orindex levels move in a way a fund’s managementdoes not anticipate.

Futures. Certain funds held by your trustmay engage in futures transactions. In additionto general risks associated with derivativesdescribed above, the primary risks associatedwith the use of futures contracts and options are


(a) the imperfect correlation between the changein market value of the instruments held by afund and the price of the futures contract oroption; (b) possible lack of a liquid secondarymarket for a futures contract and the resultinginability to close a futures contract when desired;(c) losses caused by unanticipated marketmovements, which are potentially unlimited;(d) the investment adviser’s inability to predictcorrectly the direction of securities prices, interestrates, currency exchange rates and other eco-nomic factors; and (e) the possibility that thecounterparty will default in the performance ofits obligations. While futures contracts are gener-ally liquid instruments, under certain marketconditions they may become illiquid. Futuresexchanges may impose daily or intra-day pricechange limits and/or limit the volume of trading.Additionally, government regulation may furtherreduce liquidity through similar tradingrestrictions.

Options. Certain funds held by your trustmay engage in options transactions. In additionto general risks associated with derivativesdescribed above, options are considered specula-tive. When a fund purchases an option, it maylose the premium paid for it if the price of theunderlying security or other assets decreased orremained the same (in the case of a call option)or increased or remained the same (in the case ofa put option). If a put or call option purchasedby a fund were permitted to expire withoutbeing sold or exercised, its premium would rep-resent a loss to a fund. To the extent that a fundwrites or sells an option, if the decline orincrease in the underlying asset is significantlybelow or above the exercise price of the writtenoption, a fund could experience substantial andpotentially unlimited losses.

Repurchase Agreement Risk. If the otherparty to a repurchase agreement defaults on itsobligation under such agreement, a fund maysuffer delays and incur costs or lose money inexercising its rights under the agreement. If theseller fails to repurchase the security under arepurchase agreement and the market value of

such security declines, such fund maylose money.

Short Sales Risk. Certain funds held by yourtrust may engage in short sales. Because makingshort sales in securities that it does not ownexposes a fund to the risks associated with thosesecurities, such short sales involve speculativeexposure risk. A fund will incur a loss as a resultof a short sale if the price of the securityincreases between the date of the short sale andthe date on which such fund replaces the securitysold short. A fund will realize a gain if the secu-rity declines in price between those dates. As aresult, if a fund makes short sales in securitiesthat increase in value, it will likely underperformsimilar funds that do not make short sales insecurities they do not own. There can be noassurance that a fund will be able to close out ashort sale position at any particular time or at anacceptable price. Although a fund’s gain is lim-ited to the amount at which it sold a securityshort, its potential loss is limited only by themaximum attainable price of the security, less theprice at which the security was sold. Short saletransactions involve leverage because they canprovide investment exposure in an amountexceeding the initial investment. A fund may alsopay transaction costs and borrowing fees in con-nection with short sales.

Commodities. Certain funds held by yourtrust may have exposure to the commoditiesmarket. This exposure could expose such fundsand your trust to greater volatility than invest-ment in other securities. The value ofinvestments providing commodity exposure maybe affected by changes in overall market move-ments, commodity index volatility, changes ininterest rates, or factors affecting a particularindustry or commodity, such as drought, floods,weather, embargoes, tariffs and international eco-nomic, political and regulatory developments.

Money Market Securities. Certain funds heldby your trust may invest in money market secu-rities. If market conditions improve while a fundhas temporarily invested some or all of its assets


in high quality money market securities, thisstrategy could result in reducing the potentialgain from the market upswing, thus reducing afund’s opportunity to achieve its investmentobjective.

Investment Process Risk. Your trust mayinvest in securities selected by the portfolio con-sultant. In the event that the portfolio consultantincorrectly assesses an issuer’s prospects for growthor if the portfolio consultant’s judgment about howother investors will value an issuer’s growth iswrong, then the price of an issuer’s stock maydecrease or not increase to the level anticipated.

Legislation/Litigation. From time to time,various legislative initiatives are proposed in theUnited States and abroad which may have anegative impact on certain of the securities heldby your trust or the underlying funds held byyour trust. In addition, litigation regarding anyof the issuers of the securities or of the industriesrepresented by these issuers may negativelyimpact the share prices of these securities. Noone can predict what impact any pending orthreatened litigation will have on the share pricesof the securities.

Liquidity Risk. Liquidity risk is the risk thatthe value of a security will fall if trading in thesecurity is limited or absent. No one can guaran-tee that a liquid trading market will exist forany security.

No FDIC Guarantee. An investment in yourtrust is not a deposit of any bank and is notinsured or guaranteed by the Federal DepositInsurance Corporation or any othergovernment agency.

CLOSED-END FUNDS

Closed-end funds are a type of investmentcompany that holds an actively managed portfo-lio of securities. Closed-end funds issue shares in“closed-end” offerings which generally trade on astock exchange (although some closed-end fundshares are not listed on a securities exchange).Since closed-end funds maintain a relatively fixed

pool of investment capital, portfolio managersmay be better able to adhere to their investmentphilosophies through greater flexibility and con-trol. In addition, closed-end funds do not haveto manage fund liquidity to meet potentiallylarge redemptions.

Closed-end funds are subject to various risks,including management’s ability to meet theclosed-end fund’s investment objective, and tomanage the closed-end fund portfolio when theunderlying securities are redeemed or sold, dur-ing periods of market turmoil and as investors’perceptions regarding closed-end funds or theirunderlying investments change.

Shares of closed-end funds frequently tradeat a discount from their net asset value in thesecondary market. This risk is separate anddistinct from the risk that the net asset value ofclosed-end fund shares may decrease. Theamount of such discount from net asset value issubject to change from time to time in responseto various factors.

Certain of the closed-end funds included inyour trust may employ the use of leverage intheir portfolios through the issuance of preferredstock. While leverage often serves to increase theyield of a closed-end fund, this leverage also sub-jects the closed-end fund to increased risks.These risks may include the likelihood ofincreased volatility and the possibility that theclosed-end fund’s common share income will fallif the dividend rate on the preferred shares or theinterest rate on any borrowings rises. The use ofleverage may cause a closed-end fund to liquidateportfolio positions when it may not be advanta-geous to do so to satisfy its obligations or tomeet any required asset segregation requirements.

Certain closed-end funds held by your trustmay engage in borrowing. Borrowing may exag-gerate changes in the net asset value of a fund’sshares and in the return on a fund’s portfolio.Borrowing will cost a fund interest expense andother fees. The costs of borrowing may reduce afund’s return. Borrowing may cause a fund to


liquidate positions when it may not be advanta-geous to do so to satisfy its obligations.

Certain closed-end funds held by your trustmay engage in securities lending. Securities lendinginvolves the risk that the borrower may fail toreturn the securities in a timely manner or at all.As a result, a fund could lose money and there maybe a delay in recovering the loaned securities. Afund could also lose money if it does not recoverthe securities and/or the value of the collateral falls,including the value of investments made with cashcollateral. These events could trigger adverse taxconsequences for a fund.

Only the trustee may vote the shares of theclosed-end funds held in your trust. The trusteewill vote the shares in the same general proportionas shares held by other shareholders of each fund.Your trust may be required, however, to reject anyoffer for securities or other property in exchange forportfolio securities as described under “How theTrust Works—Changing Your Portfolio.”

HOW THE TRUST WORKS

Your Trust. Your trust is a unit investmenttrust registered under the Investment CompanyAct of 1940. We created your trust under a trustagreement between Advisors Asset Management,Inc. (as depositor/sponsor, evaluator and supervi-sor) and The Bank of New York Mellon (astrustee). To create your trust, we deposited secu-rities with the trustee (or contracts to purchasesecurities along with an irrevocable letter ofcredit or other consideration to pay for the secu-rities). In exchange, the trustee delivered units ofyour trust to us. Each unit represents an undi-vided interest in the assets of your trust. Theseunits remain outstanding until redeemed or untilyour trust terminates. At the close of the NewYork Stock Exchange on your trust’s inceptiondate, the number of units may be adjusted sothat the public offering price per unit equals$10. The number of units and fractional interestof each unit in your trust will increase ordecrease to the extent of any adjustment.

Changing Your Portfolio. Your trust is not amanaged fund. Unlike a managed fund, wedesigned your portfolio to remain relatively fixed.Your trust will generally buy and sell securities:

• to pay expenses,

• to issue additional units or redeem units,

• to take actions in response to certaincorporate actions and other eventsimpacting portfolio securities,

• in limited circumstances to protectthe trust,

• to make required distributions or avoidimposition of taxes on the trust, or

• as permitted by the trust agreement.

When your trust sells securities, the compo-sition and diversification of the securities in theportfolio may be altered. If a public tender offerhas been made for a security or a merger, acqui-sition or similar transaction has been announcedaffecting a security, the sponsor may direct thetrustee to sell the security or accept a tenderoffer if the supervisor determines that the actionis in the best interest of unitholders. The trusteewill distribute any available cash proceedsto unitholders.

If an offer by the issuer of any of the portfo-lio securities or any other party is made to issuenew securities, or to exchange securities, for trustportfolio securities, the trustee will reject theoffer unless your trust is a “regulated investmentcompany” for tax purposes (see “EssentialInformation—Tax Structure” in the “InvestmentSummary” section for your trust in this prospec-tus). If your trust is a “regulated investmentcompany” for tax purposes and an offer by theissuer of any of the portfolio securities or anyother party is made to issue new securities, or toexchange securities, for trust portfolio securities,the trustee may either vote for or against, oraccept or reject, any offer for new or exchangedsecurities or property in exchange for a trustportfolio security at the direction of the sponsor.


If any issuance, exchange or substitution ofnew or exchanged securities or property inexchange for a trust portfolio security occurs(regardless of any action or rejection by a trust),any securities and/or property received will bedeposited into the trust and will be promptlysold by the trustee pursuant to the sponsor’sdirection, unless the sponsor advises the trusteeto keep such securities or property.

If any contract for the purchase of securitiesfails, the sponsor will refund the cash and salesfee attributable to the failed contract to unithold-ers on or before the next distribution date unlesssubstantially all of the moneys held to cover thepurchase are reinvested in substitute securities inaccordance with the trust agreement. If yourtrust is a “regulated investment company” for taxpurposes, the sponsor may direct thereinvestment of security sale proceeds if the saleis the direct result of serious adverse creditfactors which, in the opinion of the supervisor,would make retention of the securities detrimen-tal to the trust. In such a case, the sponsor may,but is not obligated to, direct the reinvestment ofsale proceeds in any other securities that meetthe criteria for inclusion in the trust on thetrust’s inception date. The sponsor may alsoinstruct the trustee to take action necessary toensure that a portfolio continues to satisfy thequalifications of a “regulated investment com-pany” for tax purposes.

We will increase the size of your trust as wesell units. When we create additional units, wewill seek to replicate the existing portfolio to theextent practicable. When your trust buys securi-ties, it may pay brokerage or other acquisitionfees. You could experience a dilution of yourinvestment because of these fees and fluctuationsin security prices between the time we createunits and the time your trust buys the securities.When your trust buys or sells securities, we maydirect that it place orders with and pay brokeragecommissions to brokers that sell units or areaffiliated with us, your trust or the trustee.

Pursuant to an exemptive order, your trustmay be able to purchase securities from other

trusts that we sponsor when we create additionalunits. Your trust may also be able to sell securi-ties to other trusts that we sponsor to satisfy unitredemption, pay deferred sales fees or expenses,in connection with periodic tax compliance or inconnection with the termination of your trust.The exemption may enable each trust to elimi-nate commission costs on these transactions. Theprice for those securities will be the closing priceon the sale date on the exchange where the secu-rities are principally traded as certified by us tothe trustee.

Amending the Trust Agreement. The sponsorand the trustee can change the trust agreementwithout your consent to correct any provisionthat may be defective or to make otherprovisions that will not materially adversely affectyour interest (as determined by the sponsor andthe trustee). We cannot change this agreement toreduce your interest in your trust without yourconsent. Investors owning two-thirds of the unitsin your trust may vote to change this agreement.

Termination of Your Trust. Your trust willterminate on the termination date set forthunder “Essential Information” in the “InvestmentSummary” section of this prospectus for yourtrust. The trustee may terminate your trust earlyif the value of the trust is less than 40% of theoriginal value of the securities in your trust atthe time of deposit. At this size, the expenses ofyour trust may create an undue burden on yourinvestment. Investors owning two-thirds of theunits in your trust may also vote to terminatethe trust early. The trustee will liquidate yourtrust in the event that a sufficient number ofunits not yet sold to the public are tendered forredemption so that the net worth of your trustwould be reduced to less than 40% of the valueof the securities at the time they were depositedin the trust. If this happens, we will refund anysales fee that you paid.

You will receive your final distributionwithin a reasonable time following liquidation ofall the securities after deducting final expenses.Your termination distribution may be less thanthe price you originally paid for your units.


The Sponsor. The sponsor of your trust isAdvisors Asset Management, Inc. We are abroker-dealer specializing in providing tradingand support services to broker-dealers, registeredrepresentatives, investment advisers and otherfinancial professionals. Our headquarters arelocated at 18925 Base Camp Road, Monument,Colorado 80132. You can contact our unitinvestment trust division at 8100 East 22nd

Street North, Building 800, Suite 102, Wichita,Kansas 67226 or by using the contacts listed onthe back cover of this prospectus. AAM is a reg-istered broker-dealer and investment adviser, amember of the Financial Industry RegulatoryAuthority, Inc. (FINRA) and Securities InvestorProtection Corporation (SIPC) and a registrantof the Municipal Securities Rulemaking Board(MSRB). If we fail to or cannot perform ourduties as sponsor or become bankrupt, thetrustee may replace us, continue to operate yourtrust without a sponsor, or terminate your trust.

We and your trust have adopted a code ofethics requiring our employees who have accessto information on trust transactions to reportpersonal securities transactions. The purpose ofthe code is to avoid potential conflicts of interestand to prevent fraud, deception or misconductwith respect to your trust.

The sponsor or an affiliate may use the listof securities in your trust in its independentcapacity (which may include acting as an invest-ment adviser or broker-dealer) and distribute thisinformation to various individuals and entities.The sponsor or an affiliate may recommend oreffect transactions in the securities. This may alsohave an impact on the price your trust pays forthe securities and the price received upon unitredemption or trust termination. The sponsormay act as agent or principal in connection withthe purchase and sale of securities, includingthose held by your trust, and may act as a spe-cialist market maker in the securities. Thesponsor may also issue reports and make recom-mendations on the securities in your trust. Thesponsor or an affiliate may have participated in apublic offering of one or more of the securities

in your trust. The sponsor, an affiliate or theiremployees may have a long or short position inthese securities or related securities. An officer,director or employee of the sponsor or an affili-ate may be an officer or director for the issuersof the securities.

The Trustee. The Bank of New York Mellonis the trustee of your trust with its principal unitinvestment trust division offices located at2 Hanson Place, 12th Floor, Brooklyn, New York11217. You can contact the trustee by calling thetelephone number on the back cover of this pro-spectus or by writing to its unit investment trustoffice. We may remove and replace the trustee insome cases without your consent. The trusteemay also resign by notifying us and investors.

How We Distribute Units. We sell units tothe public through broker-dealers and otherfirms. These distribution firms each receive partof the sales fee when they sell units. During theinitial offering period, the broker-dealer concessionor agency commission for broker-dealers and otherfirms is 2.00% of the public offering price per unitat the time of the transaction. The broker-dealerconcession or agency commission is 65% of thesales fee for secondary market sales. No broker-dealer concession or agency commission is paid tobroker-dealers, investment advisers or other sellingfirms in connection with unit sales in Fee Accountssubject to a Wrap Fee.

Broker-dealers and other firms that sell unitsof certain unit investment trusts for which AAMacts as sponsor are eligible to receive additionalcompensation for volume sales. The sponsoroffers two separate volume concession structuresfor certain trusts that are referred to as “VolumeConcession A” and “Volume Concession B.” Thetrusts offered in this prospectus are Volume Con-cession A trusts. Broker-dealers and other firmsthat sell units of any Volume Concession A trustare eligible to receive the additional compensa-tion described below. Such payments will be inaddition to the regular concessions paid to firmsas set forth in the applicable trust’s prospectus.


The additional concession for sales in a cal-endar month is based on total initial offeringperiod sales of all Volume Concession A trustsduring the 12-month period through the end ofthe preceding calendar month as set forth in thefollowing table:

Initial Offering Period SalesIn Preceding 12 Months

VolumeConcession

$25,000,000 but less than $100,000,000 0.035%$100,000,000 but less than $150,000,000 0.050$150,000,000 but less than $250,000,000 0.075$250,000,000 but less than $1,000,000,000 0.100$1,000,000,000 but less than $5,000,000,000 0.125$5,000,000,000 but less than $7,500,000,000 0.150$7,500,000,000 or more 0.175

We will pay these amounts out of our ownassets within a reasonable time following eachcalendar month.

The volume concessions will be paid onunits of all Volume Concession A trusts sold inthe initial offering period, except as describedbelow. For a trust to be eligible for this addi-tional Volume Concession A compensation, thetrust’s prospectus must include disclosure relatedto the additional Volume Concession A compen-sation; a trust is not eligible for additionalVolume Concession A compensation if the pro-spectus for such trust does not include disclosurerelated to the additional Volume Concession Acompensation. In addition, dealer firms will notreceive volume concessions on the sale of unitswhich are not subject to a transactional sales fee.However, such sales will be included in deter-mining whether a firm has met the sales levelbreakpoints for volume concessions subject to thepolicies of the related selling firm. Secondarymarket sales of all unit trusts are excluded forpurposes of these volume concessions.

Any sales fee discount is borne by thebroker-dealer or selling firm out of thebroker-dealer concession or agency commission.We reserve the right to change the amount ofcompensation paid to selling firms from time totime. Some broker-dealers and other selling firmsmay limit the compensation they or their repre-sentatives receive in connection with unit sales.

As a result, certain broker-dealers and other sell-ing firms may waive or refuse payment of all or aportion of the regular concession or agency com-mission and/or volume concession describedabove and instruct the sponsor to retain suchamounts rather than pay or allow the amounts tosuch firm.

We currently may provide, at our ownexpense and out of our own profits, additionalcompensation and benefits to broker-dealers andother firms who sell units of your trust and ourother products. This compensation is intended toresult in additional sales of our products and/orcompensate broker-dealers and financial advisorsfor past sales. A number of factors are consideredin determining whether to pay these additionalamounts. Such factors may include, but are notlimited to, the level or type of services providedby the intermediary, the level or expected level ofsales of our products by the intermediary or itsagents, the placing of our products on a pre-ferred or recommended product list and access toan intermediary’s personnel. We may make thesepayments for marketing, promotional or relatedexpenses, including, but not limited to, expensesof entertaining retail customers and financialadvisors, advertising, sponsorship of events orseminars, obtaining information about the break-down of unit sales among an intermediary’srepresentatives or offices, obtaining shelf space inbroker-dealer firms and similar activities designedto promote the sale of our products. We makesuch payments to a substantial majority of inter-mediaries that sell our products. We may alsomake certain payments to, or on behalf of, inter-mediaries to defray a portion of their costsincurred for the purpose of facilitating unit sales,such as the costs of developing or purchasingtrading systems to process unit trades. Paymentsof such additional compensation described in thisparagraph and the volume concessions describedabove, some of which may be characterized as“revenue sharing,” may create an incentive forfinancial intermediaries and their agents to sell orrecommend our products, including your trust,


over other products. These arrangements will notchange the price you pay for your units.

We generally register units for sale in variousstates in the U.S. We do not register units forsale in any foreign country. This prospectus doesnot constitute an offer of units in any state orcountry where units cannot be offered or soldlawfully. We may reject any order for units inwhole or in part.

We may gain or lose money when we holdunits in the primary or secondary market due tofluctuations in unit prices. The gain or loss isequal to the difference between the price we payfor units and the price at which we sell orredeem them. We may also gain or lose moneywhen we deposit securities to create units. Theamount of our profit or loss on the initialdeposit of securities into your trust is shown inthe “Notes to Portfolio” section for your trust.

TAXES—REGULATED INVESTMENT COMPANIES

This section summarizes some of the mainU.S. federal income tax consequences of owningunits of your trust if your trust qualifies as a“regulated investment company” under federaltax laws. The tax structure of your trust is setforth under “Essential Information—Tax Struc-ture” in the “Investment Summary” section foryour trust in this prospectus.

This section is current as of the date of thisprospectus. Tax laws and interpretations changefrequently, and these summaries do not describeall of the tax consequences to all taxpayers. Forexample, these summaries generally do notdescribe your situation if you are a corporation, anon-U.S. person, a broker/dealer, or other inves-tor with special circumstances. In addition, thissection does not describe your state, local or for-eign tax consequences.

This federal income tax summary is based inpart on the advice of counsel to the sponsor. TheInternal Revenue Service could disagree with anyconclusions set forth in this section. In addition,our counsel was not asked to review, and has not

reached a conclusion with respect to the federalincome tax treatment of the assets to be depos-ited in your trust. This may not be sufficient foryou to use for the purpose of avoiding penaltiesunder federal tax law.

As with any investment, you should seekadvice based on your individual circumstancesfrom your own tax advisor.

Trust Status. Your trust intends to qualify asa “regulated investment company” under the fed-eral tax laws. If your trust qualifies as a regulatedinvestment company and distributes its incomeas required by the tax law, your trust generallywill not pay federal income taxes. If your trustinvests in a partnership, an adverse federalincome tax audit of that partnership could resultin the trust being required to pay federal incometax or pay a deficiency dividend (without havingreceived additional cash).

Distributions. Trust distributions are gener-ally taxable. After the end of each year, you willreceive a tax statement that separates your trust’sdistributions into three categories: ordinaryincome distributions, capital gain dividends andreturn of capital. Ordinary income distributionsare generally taxed at your ordinary tax rate,however, as further discussed below, certain ordi-nary income distributions received from yourtrust may be taxed at the capital gains tax rates.Generally, you will treat all capital gain dividendsas long-term capital gains regardless of how longyou have owned your units. To determine youractual tax liability for your capital gain divi-dends, you must calculate your total net capitalgain or loss for the tax year after considering allof your other taxable transactions, as describedbelow. In addition, your trust may make distri-butions that represent a return of capital for taxpurposes and thus will generally not be taxableto you. A return of capital, although not initiallytaxable to you, will result in a reduction in thebasis in your units and subsequently result inhigher levels of taxable capital gains in thefuture. In addition, if the non-dividend distribu-tion exceeds your basis in your units, you will


have long-term or short-term gain dependingupon your holding period. The tax status of yourdistributions from your trust is not affected bywhether you reinvest your distributions in addi-tional units or receive them in cash. The incomefrom your trust that you must take into accountfor federal income tax purposes is not reduced byamounts used to pay a deferred sales fee, if any.The tax laws may require you to treat distribu-tions made to you in January as if you hadreceived them on December 31 of the previousyear. Income from your trust may also be subjectto a 3.8 percent “medicare tax.” This tax gener-ally applies to your net investment income ifyour adjusted gross income exceeds certainthreshold amounts, which are $250,000 in thecase of married couples filing joint returns and$200,000 in the case of single individuals.

Dividends Received Deduction. A corpora-tion that owns units generally will not beentitled to the dividends received deduction withrespect to many dividends received from yourtrust because the dividends received deduction isgenerally not available for distributions fromregulated investment companies. However, cer-tain ordinary income dividends on units that areattributable to qualifying dividends received byyour trust from certain corporations may bereported by the trust as being eligible for thedividends received deduction.

Sale or Redemption of Units. If you sell orredeem your units, you will generally recognize ataxable gain or loss. To determine the amount ofthis gain or loss, you must subtract your tax basisin your units from the amount you receive in thetransaction. Your tax basis in your units is gener-ally equal to the cost of your units, generallyincluding sales fees. In some cases, however, youmay have to adjust your tax basis after you pur-chase your units.

An election may be available to you to deferrecognition of capital gain if you make certainqualifying investments within a limited time.You should talk to your tax advisor about the

availability of this deferral election and itsrequirements.

Capital Gains and Losses and Certain Ordi-nary Income Dividends. If you are an individual,the maximum marginal stated federal tax rate fornet capital gain is generally 20% (15% or 0%for taxpayers with taxable incomes below certainthresholds). Some portion of your capital gaindividends may be subject to higher maximummarginal stated federal income tax rates. Someportion of your capital gain dividends may beattributable to the trust’s interest in a master lim-ited partnership which may be subject to amaximum marginal stated federal income tax rateof 28%, rather than the rates set forth above. Inaddition, capital gain received from assets heldfor more than one year that is considered “unre-captured section 1250 gain” (which may be thecase, for example, with some capital gains attrib-utable to equity interests in real estate investmenttrusts that constitute interests in entities treatedas real estate investment trusts for federal incometax purposes) is taxed at a maximum stated taxrate of 25%. In the case of capital gain divi-dends, the determination of which portion of thecapital gain dividend, if any, is subject to the28% tax rate or the 25% tax rate, will be madebased on rules prescribed by the United StatesTreasury. Capital gains may also be subject to the“medicare tax” described above.

An election may be available to you to deferrecognition of the gain attributable to a capitalgain dividend if you make certain qualifyinginvestments within a limited time. You shouldtalk to your tax advisor about the availability ofthis deferral election and its requirements.

Net capital gain equals net long-term capitalgain minus net short-term capital loss for thetaxable year. Capital gain or loss is long-term ifthe holding period for the asset is more than oneyear and is short-term if the holding period forthe asset is one year or less. You must excludethe date you purchase your units to determineyour holding period. However, if you receive acapital gain dividend from your trust and sell


your unit at a loss after holding it for six monthsor less, the loss will be recharacterized as long-term capital loss to the extent of the capital gaindividend received. The tax rates for capital gainsrealized from assets held for one year or less aregenerally the same as for ordinary income. TheInternal Revenue Code treats certain capital gainsas ordinary income in special situations.

Ordinary income dividends received by anindividual unitholder from a regulated invest-ment company such as your trust are generallytaxed at the same rates that apply to net capitalgain (as discussed above), provided certain hold-ing period requirements are satisfied andprovided the dividends are attributable to quali-fying dividends received by your trust itself.Distributions with respect to shares in real estateinvestment trusts are qualifying dividends only inlimited circumstances. Your trust will providenotice to its unitholders of the amount of anydistribution which may be taken into account asa dividend which is eligible for the capital gainstax rates.

In addition, some portion of the dividendson your units that are attributable to dividendsreceived by your trust from shares in real estateinvestment trusts may be designated by yourtrust as eligible for a deduction for qualifiedbusiness income, provided certain holding periodrequirements are satisfied.

In-Kind Distributions. Under certain cir-cumstances, as described in this prospectus, youmay receive an in-kind distribution of trust secu-rities when you redeem units or when your trustterminates. This distribution will be treated as asale for federal income tax purposes and you willgenerally recognize gain or loss, generally basedon the value at that time of the securities andthe amount of cash received. The InternalRevenue Service could however assert that a losscould not be currently deducted.

Rollovers and Exchanges. If you elect to haveyour proceeds from your trust rolled over into afuture trust, the exchange would generally beconsidered a sale for federal income tax purposes.

Treatment of Trust Expenses. Expensesincurred and deducted by your trust will gener-ally not be treated as income taxable to you. Insome cases, however, you may be required totreat your portion of these trust expenses asincome. You may not be able to deduct some orall of these expenses.

Foreign Tax Credit. If your trust invests inany foreign securities, the tax statement that youreceive may include an item showing foreigntaxes your trust paid to other countries. In thiscase, dividends taxed to you will include yourshare of the taxes your trust paid to other coun-tries. You may be able to deduct or receive a taxcredit for your share of these taxes.

Investments in Certain Foreign Corporations.If your trust holds an equity interest in any “pas-sive foreign investment companies” (“PFICs”),which are generally certain foreign corporationsthat receive at least 75% of their annual grossincome from passive sources (such as interest,dividends, certain rents and royalties or capitalgains) or that hold at least 50% of their assets ininvestments producing such passive income, thetrust could be subject to U.S. federal income taxand additional interest charges on gains and cer-tain distributions with respect to those equityinterests, even if all the income or gain is timelydistributed to its unitholders. Your trust will notbe able to pass through to its unitholders anycredit or deduction for such taxes. Your trust maybe able to make an election that could amelioratethese adverse tax consequences. In this case, yourtrust would recognize as ordinary income anyincrease in the value of such PFIC shares, and asordinary loss any decrease in such value to theextent it did not exceed prior increases included inincome. Under this election, your trust might berequired to recognize in a year income in excess ofits distributions from PFICs and its proceeds fromdispositions of PFIC stock during that year, andsuch income would nevertheless be subject to thedistribution requirement and would be taken intoaccount for purposes of the 4% excise tax. Divi-dends paid by PFICs are not treated as qualifieddividend income.


Foreign Investors. If you are a foreign inves-tor (i.e., an investor other than a U.S. citizen orresident or a U.S. corporation, partnership, estateor trust), you should be aware that, generally,subject to applicable tax treaties, distributionsfrom your trust will be characterized as dividendsfor federal income tax purposes (other thandividends which your trust properly reports ascapital gain dividends) and will be subject toU.S. income taxes, including withholding taxes,subject to certain exceptions described below.However, distributions received by a foreigninvestor from your trust that are properlyreported by your trust as capital gain dividendsmay not be subject to U.S. federal income taxes,including withholding taxes, provided that yourtrust makes certain elections and certain otherconditions are met. Distributions from your trustthat are properly reported by the trust as aninterest-related dividend attributable to certaininterest income received by the trust or as ashort-term capital gain dividend attributable tocertain net short-term capital gain incomereceived by the trust may not be subject to U.S.federal income taxes, including withholding taxeswhen received by certain foreign investors, pro-vided that the trust makes certain elections andcertain other conditions are met. In addition,distributions to, and the gross proceeds fromdispositions of units by, (i) certain non-U.S.financial institutions that have not entered intoan agreement with the U.S. Treasury to collectand disclose certain information and are not resi-dent in a jurisdiction that has entered into suchan agreement with the U.S. Treasury and(ii) certain other non-U.S. entities that do notprovide certain certifications and informationabout the entity’s U.S. owners, may be subject toa U.S. withholding tax of 30%. However, pro-posed regulations may eliminate the requirementto withhold on payments of gross proceeds fromdispositions. You should also consult your taxadvisor with respect to other U.S. tax withhold-ing and reporting requirements.

TAXES—GRANTOR TRUSTS

This section summarizes some of the mainU.S. federal income tax consequences of owningunits of your trust if your trust is structured as agrantor trust under the federal tax laws. The taxstructure of your trust is set forth under “Essen-tial Information—Tax Structure” in the“Investment Summary” section for your trust inthis prospectus.

This section is current as of the date of thisprospectus. Tax laws and interpretations changefrequently, and these summaries do not describeall of the tax consequences to all taxpayers. Forexample, these summaries generally do notdescribe your situation if you are a corporation, anon-U.S. person, a broker/dealer, or otherinvestor with special circumstances. In addition,this section does not describe your state, local orforeign tax consequences.

This federal income tax summary is based inpart on the advice and opinion of counsel to thesponsor. The Internal Revenue Service could dis-agree with any conclusions set forth in thissection. In addition, our counsel was not askedto review, and has not reached a conclusion withrespect to the federal income tax treatment of theassets to be deposited in your trust. This maynot be sufficient for you to use for the purposeof avoiding penalties under federal tax law.

As with any investment, you should seekadvice based on your individual circumstancesfrom your own tax advisor.

Assets of the Trust. Your trust is expected tohold one or more of the following: (i) shares ofstock in corporations (the “Stocks”) that aretreated as equity for federal income tax purposes,(ii) equity interests (the “REIT Shares”) in realestate investment trusts (“REITs”) that constituteinterests in entities treated as real estate invest-ment trusts for federal income tax purposes, and(iii) shares (the “RIC Shares”) in funds qualifyingas regulated investment companies (“RICs”) thatare treated as interests in regulated investmentcompanies for federal income tax purposes.


It is possible that your trust will also holdother assets, including assets that are treated dif-ferently for federal income tax purposes fromthose described above, in which case you willhave federal income tax consequences differentfrom or in addition to those described in thissection. All of the assets held by your trustconstitute the “Trust Assets.” Neither our counselnor we have analyzed the proper federal incometax treatment of the Trust Assets and thus neitherour counsel nor we have reached a conclusionregarding the federal income tax treatment of theTrust Assets.

Trust Status. The trust is considered agrantor trust under federal income tax laws. Ingrantor trusts, investors are deemed for federalincome tax purposes, to own the underlyingassets of the trust directly. All taxability issues aretaken into account at the unit owner level.Income passes through to unit owners as realizedby the trust.

Income is reported gross of expenses.Expenses are separately reported based on a per-centage of distributions. Generally, the cashreceived by unit owners is the net of income andexpenses reported.

The grantor trust structure is a widely heldfixed investment trust (“WHFIT”), and fallsunder what is commonly referred to as theWHFIT regulations.

If your trust is at all times operated in accor-dance with the documents establishing your trustand certain requirements of federal income taxlaw are met, your trust will not be taxed as acorporation for federal income tax purposes. As aunit owner, you will be treated as the owner of apro rata portion of each of the Trust Assets, andas such you will be considered to have received apro rata share of income (e.g., dividends andcapital gains, if any) from each Trust Asset whensuch income would be considered to be receivedby you if you directly owned the Trust Assets.This is true even if you elect to have your distri-butions reinvested into additional units. Inaddition, the income from Trust Assets that you

must take into account for federal income taxpurposes is not reduced by amounts used to paysales fees or trust expenses. Income from thetrust may also be subject to a 3.8 percent “medi-care tax.” This tax generally applies to your netinvestment income if your adjusted gross incomeexceeds certain threshold amounts, which are$250,000 in the case of married couples filingjoint returns and $200,000 in the case of singleindividuals. Interest that is excluded from grossincome, including exempt-interest dividendsfrom any RIC Shares held by the trust, are gen-erally not included in your net investmentincome for purposes of this tax.

Your Tax Basis and Income or Loss uponDisposition. If your trust disposes of Trust Assets,you will generally recognize gain or loss. If youdispose of your units or redeem your units forcash, you will also generally recognize gain orloss. To determine the amount of this gain orloss, you must subtract your tax basis in therelated Trust Assets from your share of the totalamount received in the transaction. You can gen-erally determine your initial tax basis in eachTrust Asset by apportioning the cost of yourunits, including sales fees, among the TrustAssets ratably according to their values on thedate you acquire your units. In certain circum-stances, however, you may have to adjust yourtax basis after you acquire your units (forexample, in the case of certain dividends thatexceed a corporation’s accumulated earnings andprofits, or in the case of certain distributionswith respect to any REIT Shares that represent areturn of capital, as discussed below).

If you are an individual, the maximum mar-ginal stated federal tax rate for net capital gain isgenerally 20% (15% or 0% for taxpayers withtaxable incomes below certain thresholds). Somecapital gains, including some portion of the capi-tal gain dividends from the RIC Shares, may betaxed at a higher stated federal tax rate. Someportion of any capital gain dividends you receivemight be attributable to a RIC’s interest in amaster limited partnership which may be subjectto a maximum marginal stated federal income


tax rate of 28%, rather than the rates set forthabove. In addition, capital gain received fromassets held for more than one year that is consid-ered “unrecaptured section 1250 gain” (whichmay be the case, for example, with some capitalgains attributable to equity interests in real estateinvestment trusts that constitute interests inentities treated as real estate investment trusts forfederal income tax purposes) is taxed at a maxi-mum stated tax rate of 25%. In the case ofcapital gain dividends, the determination ofwhich portion of the capital gain dividend, ifany, is subject to the 28% tax rate or the 25%tax rate, will be made based on rules prescribedby the United States Treasury. Capital gainsmay also be subject to the “medicare tax”described above.

An election may be available to you to deferrecognition of capital gain if you make certainqualifying investments within a limited time. Youshould talk to your tax advisor about the avail-ability of this deferral election and itsrequirements.

Net capital gain equals net long-term capitalgain minus net short-term capital loss for thetaxable year. Capital gain or loss is long-term ifthe holding period for the asset is more than oneyear and is short-term if the holding period forthe asset is one year or less. You must excludethe date you purchase your units to determineyour holding period. The tax rates for capitalgains realized from assets held for one year orless are generally the same as for ordinaryincome. The Internal Revenue Code, however,treats certain capital gains as ordinary income inspecial situations.

Dividends from Stocks. Certain dividendsreceived with respect to the Stocks held by thetrust, if any, may qualify to be taxed at the samerates that apply to net capital gain (as discussedabove), provided certain holding period require-ments are satisfied.

Dividends from RIC Shares and REITShares. Some dividends on REIT Shares or RICShares, if any, held by the trust, may be reported

by the REIT or RIC as “capital gain dividends,”generally taxable to you as long-term capitalgains. Some dividends on RIC Shares mayqualify as “exempt-interest dividends,” whichgenerally are excluded from your gross incomefor federal income tax purposes. Some or all ofthe exempt-interest dividends, however may betaken into account in determining your alterna-tive minimum tax, and may have other taxconsequences (e.g., they may affect the amountof your social security benefits that are taxed).Other dividends on the REIT Shares or the RICShares will generally be taxable to you as ordi-nary income. Certain ordinary income dividendsfrom a RIC may qualify to be taxed at the samerates that apply to net capital gain (as discussedabove), provided certain holding period require-ments are satisfied and provided the dividendsare attributable to qualifying dividends receivedby the RIC itself. Regulated investment compa-nies are required to provide notice to theirshareholders of the amount of any distributionthat may be taken into account as a dividendthat is eligible for the capital gains tax rates. Inlimited circumstances, some of the ordinaryincome dividends from a REIT may also qualifyto be taxed at the same rates that apply to netcapital gains. If you hold a unit for six monthsor less or if your trust holds a RIC Share orREIT Share for six months or less, any lossincurred by you related to the disposition of suchRIC Share or REIT Share will be disallowed tothe extent of the exempt-interest dividends youreceived. To the extent, if any, it is notdisallowed, it will be treated as a long-term capi-tal loss to the extent of any long-term capitalgain distributions received (or deemed to havebeen received) with respect to such RIC Share orREIT Share. Distributions of income or capitalgains declared on the REIT Shares or the RICShares in October, November or December willbe deemed to have been paid to you on Decem-ber 31 of the year they are declared, even whenpaid by the REIT or the RIC during the follow-ing January. Some dividends on the REIT Sharesor RIC shares may be eligible for a deduction for


qualified business income provided certain hold-ing period requirements are satisfied.

An election may be available to you to deferrecognition of the gain attributable to a capitalgain dividend if you make certain qualifyinginvestments within a limited time. You shouldtalk to your tax advisor about the availability ofthis deferral election and its requirements.

Dividends Received Deduction. Generally, adomestic corporation owning units in a trustmay be eligible for the dividends received deduc-tion with respect to such unit owner’s pro rataportion of certain types of dividends received bythe trust. However, a corporation generally willnot be entitled to the dividends received deduc-tion with respect to dividends from most foreigncorporations or from REITs or RICs. However,certain dividends on RIC Shares that are attrib-utable to dividends received by the RIC itselffrom certain domestic corporations may bereported by the RIC as being eligible for thedividends received deduction.

In-Kind Distributions. Under certain cir-cumstances as described in this prospectus, youmay request an In-Kind Distribution of TrustAssets when you redeem your units or at yourtrust’s termination. By electing to receive anIn-Kind Distribution, you will receive TrustAssets plus, possibly, cash. You will not recognizegain or loss if you only receive whole TrustAssets in exchange for the identical amount ofyour pro rata portion of the same Trust Assetsheld by your trust. However, if you also receivecash in exchange for a Trust Asset or a fractionalportion of a Trust Asset, you will generally recog-nize gain or loss based on the difference betweenthe amount of cash you receive and your taxbasis in such Trust Asset or fractional portion.

Rollovers and Exchanges. If you elect to haveyour proceeds from your trust rolled over into afuture trust, it is considered a sale for federalincome tax purposes and any gain on the salewill be treated as a capital gain, and any loss willbe treated as a capital loss. However, any lossyou incur in connection with the exchange of

your units of your trust for units of the nextseries will generally be disallowed with respect tothis deemed sale and subsequent deemedrepurchase, to the extent the two trusts have sub-stantially identical Trust Assets under the washsale provisions of the Internal Revenue Code.

Treatment of Trust Expenses. Generally, forfederal income tax purposes, you must take intoaccount your full pro rata share of your trust’sincome, even if some of that income is used topay trust expenses. You may deduct your pro ratashare of each expense paid by your trust to thesame extent as if you directly paid the expense.You may not be able to deduct some or all ofthese expenses.

If any of the RICs pay exempt-interest divi-dends, which are treated as tax-exempt interestfor federal income tax purposes, you will not beable to deduct some of your share of the trustexpenses. In addition, you will not be able todeduct some of your interest expense for debtthat you incur or continue to purchase or carryyour units.

Foreign Investors, Taxes and Investments.Distributions by your trust that are treated asU.S. source income (e.g., dividends received onStocks of domestic corporations) will generally besubject to U.S. income taxation and withholdingin the case of units held by nonresident alienindividuals, foreign corporations or other non-U.S. persons, subject to any applicable treaty. Ifyou are a foreign investor (i.e., an investor otherthan a U.S. citizen or resident or a U.S. corpora-tion, partnership, estate or trust), you may notbe subject to U.S. federal income taxes, includ-ing withholding taxes, on some or all of theincome from your trust or on any gain from thesale or redemption of your units, provided thatcertain conditions are met. You should consultyour tax advisor with respect to the conditionsyou must meet in order to be exempt for U.S.tax purposes. In addition, distributions to, andthe gross proceeds from dispositions of units by,(i) certain non-U.S. financial institutions thathave not entered into an agreement with the


U.S. Treasury to collect and disclose certaininformation and are not resident in a jurisdictionthat has entered into such an agreement with theU.S. Treasury and (ii) certain other non-U.S.entities that do not provide certain certificationsand information about the entity’s U.S. owners,may be subject to a U.S. withholding tax of30%. However, proposed regulations may elimi-nate the requirement to withhold on paymentsof gross proceeds from dispositions. You shouldalso consult your tax advisor with respect toother U.S. tax withholding and reportingrequirements.

Some distributions by your trust may besubject to foreign withholding taxes. Any incomewithheld will still be treated as income to you.Under the grantor trust rules, you are consideredto have paid directly your share of any foreigntaxes that are paid. Therefore, for U.S. tax pur-poses, you may be entitled to a foreign tax creditor deduction for those foreign taxes.

Under certain circumstances, a RIC mayelect to pass through to its shareholders certainforeign taxes paid by the RIC. If a RIC makesthis election with respect to RIC Shares, youmust include in your income for federal incometax purposes your portion of such taxes and youmay be entitled to a credit or deduction forsuch taxes.

If any U.S. investor is treated as owningdirectly or indirectly 10 percent or more of thecombined voting power of the stock of a foreigncorporation, and all U.S. shareholders of thatcorporation collectively own more than 50 per-cent of the vote or value of the stock of thatcorporation, the foreign corporation may betreated as a controlled foreign corporation(CFC). If you own 10 percent or more of a CFC(through your trust and in combination withyour other investments) or possibly if your trustowns 10 percent or more of a CFC, you will berequired to include certain types of the CFC’sincome in your taxable income for federalincome tax purposes whether or not such incomeis distributed to your trust or to you.

A foreign corporation will generally betreated as a passive foreign investment company(“PFIC”) if 75 percent or more of its income ispassive income or if 50 percent or more of itsassets are held to produce passive income. If yourtrust purchases shares in a PFIC, you may besubject to U.S. federal income tax on a portionof certain distributions or on gains from the dis-position of such shares at rates that wereapplicable in prior years and any gain may berecharacterized as ordinary income that is noteligible for the lower net capital gains tax rate.Additional charges in the nature of interest mayalso be imposed on you. Certain elections maybe available with respect to PFICs that wouldlimit these consequences. However, these elec-tions would require you to include certainincome of the PFIC in your taxable income evenif not distributed to the trust or to you, orrequire you to annually recognize as ordinaryincome any increase in the value of the shares ofthe PFIC, thus requiring you to recognizeincome for federal income tax purposes in excessof your actual distributions from PFICs and pro-ceeds from dispositions of PFIC stock during aparticular year. Dividends paid by PFICs arenot eligible to be taxed at the net capital gainstax rate.

New York Tax Status. Under the existingincome tax laws of the State and City of NewYork, your trust will not be taxed as a corpora-tion subject to the New York state franchise taxor the New York City general corporation tax.You should consult your tax advisor regardingpotential foreign, state or local taxation withrespect to your units.

EXPENSES

Your trust will pay various expenses to con-duct its operations. The “Fees and Expenses”section for each trust in this prospectus showsthe estimated amount of these expenses.

The sponsor will receive a fee from yourtrust for creating and developing the trust,including determining the trust’s objectives,


policies, composition and size, selecting serviceproviders and information services and for pro-viding other similar administrative andministerial functions. This “creation and develop-ment fee” is a charge of $0.05 per unit. Thetrustee will deduct this amount from your trust’sassets as of the close of the initial offeringperiod. No portion of this fee is applied to thepayment of distribution expenses or as compen-sation for sales efforts. This fee will not bededucted from proceeds received upon a repur-chase, redemption or exchange of units beforethe close of the initial public offering period.

Your trust will pay a fee to the trustee for itsservices. The trustee also benefits when it holdscash for your trust in non-interest bearingaccounts. Your trust will reimburse us as supervi-sor, evaluator and sponsor for providingportfolio supervisory services, for evaluating yourportfolio and for providing bookkeeping andadministrative services. Our reimbursementsmay exceed the costs of the services we provideto your trust but will not exceed the costs ofservices provided to all of our unit investmenttrusts in any calendar year. All of these fees mayadjust for inflation without your approval.

Your trust will also pay its general operatingexpenses. Your trust may pay expenses such astrustee expenses (including legal and auditingexpenses), various governmental charges, fees forextraordinary trustee services, costs of takingaction to protect your trust, costs of indemnify-ing the trustee and the sponsor, legal fees andexpenses, expenses incurred in contacting youand any applicable license fee for the use of cer-tain service marks, trademarks and/or tradenames. Your trust may pay the costs of updatingits registration statement each year. The trusteewill generally pay trust expenses from distribu-tions received on the securities but in some casesmay sell securities to pay trust expenses.

EXPERTS

Legal Matters. Chapman and Cutler LLPacts as counsel for your trust and has given anopinion that the units are validly issued. Dorsey &Whitney LLP acts as counsel for the trustee.

Independent Registered Public AccountingFirm. Grant Thornton LLP, independent regis-tered public accounting firm, audited thestatements of financial condition and the portfo-lios included in this prospectus.

ADDITIONAL INFORMATION

This prospectus does not contain all theinformation in the registration statement thatyour trust filed with the Securities and ExchangeCommission. The Information Supplement,which was filed with the Securities and ExchangeCommission, includes more detailed informationabout the securities in your portfolio, investmentrisks and general information about your trust.You can obtain the Information Supplement bycontacting us or the Securities and ExchangeCommission as indicated on the back cover ofthis prospectus. This prospectus incorporates theInformation Supplement by reference (it is legallyconsidered part of this prospectus).


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Sponsor and UnitholdersAdvisors Disciplined Trust 2021

Opinion on the financial statements

We have audited the accompanying statements of financial condition, including the trust portfolio on pages 7, 8, 9, 14, 18,19, 22, 23 and 27, of Advisors Disciplined Trust 2021 (the “Trust”) as of July 7, 2020, the initial date of deposit, and the relatednotes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all materialrespects, the financial position of the Trust as of July 7, 2020, in conformity with accounting principles generally accepted inthe United States of America.

Basis for opinion

These financial statements are the responsibility of Advisors Asset Management, Inc., the Sponsor. Our responsibility isto express an opinion on the Trust’s financial statements based on our audits. We are a public accounting firm registeredwith the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independentwith respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations ofthe Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and performthe audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whetherdue to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of its internal controlover financial reporting. As part of our audits we are required to obtain an understanding of internal control over financialreporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financialreporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whetherdue to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, ona test basis, evidence supporting the amounts and disclosures in the financial statements. Our audits also included evaluatingthe accounting principles used and significant estimates made by management, as well as evaluating the overall presentationof the financial statements. Our procedures included confirmation of cash or irrevocable letter of credit deposited for thepurchase of securities as shown in the statements of financial condition as of July 7, 2020 by correspondence with TheBank of New York Mellon, Trustee. We believe that our audits provide a reasonable basis for our opinion.

/s/ GRANT THORNTON LLP

We have served as the auditor of one or more of the unit investment trusts, sponsored by Advisors Asset Management,Inc. and its predecessor since 2003.

Chicago, IllinoisJuly 7, 2020


Advisors Disciplined Trust 2021

Statements of Financial Condition as of July 7, 2020BalancedPortfolio

Cohen & SteersEquity Dividend& IncomeClosed-EndPortfolio

DividendStrengthPortfolio

Investment in securitiesContracts to purchase underlying securities (1)(2) . . . . . . . . . . . . . . $148,809 $148,846 $149,413

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $148,809 $148,846 $149,413

Liabilities and interest of investorsLiabilities:

Organization costs (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 729 $ 729 $ 732Deferred sales fee (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,348 3,349 3,362Creation and development fee (4) . . . . . . . . . . . . . . . . . . . . . . 744 744 747

4,821 4,822 4,841

Interest of investors:Cost to investors (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148,809 148,846 149,413Less: initial sales fee (4)(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . - - -Less: deferred sales fee, creation and development fee

and organization costs (3)(4)(5). . . . . . . . . . . . . . . . . . . . . . . 4,821 4,822 4,841Net interest of investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143,988 144,024 144,572Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $148,809 $148,846 $149,413

Number of units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,881 14,885 14,941

Net asset value per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9.676 $ 9.676 $ 9.676

Advisors Disciplined Trust 2021

Statements of Financial Condition as of July 7, 2020

FinancialOpportunitiesPortfolio

UbiquitousStrategyPortfolio

Investment in securitiesContracts to purchase underlying securities (1)(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . $148,965 $284,034

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $148,965 $284,034

Liabilities and interest of investorsLiabilities:

Organization costs (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 730 $ 1,392Deferred sales fee (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,352 6,391Creation and development fee (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745 1,420

4,827 9,203

Interest of investors:Cost to investors (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148,965 284,034Less: initial sales fee (4)(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - -Less: deferred sales fee, creation and development fee

and organization costs (3)(4)(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,827 9,203Net interest of investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144,138 274,831Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $148,965 $284,034

Number of units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,897 28,403Net asset value per unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9.676 $ 9.676

See Notes to Statements of Financial Condition on page 67.

(Continued)


Notes to Statements of Financial Condition

(1) Aggregate cost of the securities is based on the closing sale price evaluations as determined by the evaluator.

(2) Cash or an irrevocable letter of credit has been deposited with the trustee covering the funds necessary for the purchase of securities ineach trust represented by purchase contracts.

(3) A portion of the public offering price represents an amount sufficient to pay for all or a portion of the costs incurred in establishing thetrusts. These costs have been estimated at $0.049 per unit for each trust. A distribution will be made as of the earlier of the close of theinitial offering period or six months following the trust’s inception date to an account maintained by the trustee from which this obligationof the investors will be satisfied. To the extent the actual organization costs are greater than the estimated amount, only the estimatedorganization costs added to the public offering price will be reimbursed to the sponsor and deducted from the assets of the trust.

(4) The total sales fee consists of an initial sales fee, a deferred sales fee and a creation and development fee. The initial sales fee is equal tothe difference between the maximum sales fee and the sum of the remaining deferred sales fee and the total creation and developmentfee. The maximum sales fee is 2.75% of the public offering price per unit. The deferred sales fee is equal to $0.225 per unit and the creationand development fee is equal to $0.05 per unit.

(5) The aggregate cost to investors includes the applicable sales fee assuming no reduction of sales fees.


ContentsInvestment Summary

A concise descriptionof essential informationabout the portfolio

2 Balanced Portfolio10 Cohen & Steers Equity Dividend &

Income Closed-End Portfolio15 Dividend Strength Portfolio20 Financial Opportunities Portfolio24 Ubiquitous Strategy Portfolio

Understanding Your Investment

Detailed information tohelp you understandyour investment

28 How to Buy Units31 How to Sell Your Units32 Distributions33 Investment Risks51 Closed-End Funds52 How the Trust Works56 Taxes — Regulated Investment

Companies59 Taxes — Grantor Trusts63 Expenses64 Experts64 Additional Information65 Report of Independent Registered

Public Accounting Firm66 Statements of Financial Condition

Where to Learn More

You can contact us forfree information aboutthis and other investments,including the InformationSupplement

Visit us on the Internethttp://www.AAMlive.comCall Advisors AssetManagement, Inc.(877) 858-1773Call The Bank of New York Mellon(800) 848-6468

Additional Information

This prospectus does not contain all information filed with the Securitiesand Exchange Commission. To obtain or copy this information includingthe Information Supplement (a duplication fee may be required):

E-mail: [email protected]: Public Reference Section

Washington, D.C. 20549Visit: http://www.sec.gov

(EDGAR Database)Call: 1-202-551-8090

(only for information on the operation of thePublic Reference Section)

Refer to:Advisors Disciplined Trust 2021Securities Act file number: 333-237255Investment Company Act file number: 811-21056

BALANCED PORTFOLIO,SERIES 2020-3

COHEN & STEERS EQUITYDIVIDEND & INCOME CLOSED-ENDPORTFOLIO, SERIES 2020-3

DIVIDEND STRENGTH PORTFOLIO,SERIES 2020-3 –

A HARTFORD INVESTMENTMANAGEMENT COMPANY (“HIMCO”) PORTFOLIO

FINANCIAL OPPORTUNITIES

PORTFOLIO, SERIES 2020-3

UBIQUITOUS STRATEGYPORTFOLIO, SERIES 2020-3

PROSPECTUS

JULY 7, 2020

balanced portfolio, series 2020-3 cohen & steers equity ...€¦ · cohen & steers equity...

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