An Advisors Disciplined Trust, or ADT, is a unit investment trust. It is a generally fixed portfolio of professionally selected securities with a set investment discipline and a set date of termination. ADTs are designed to introduce low correlated asset classes into income-producing portfolios. They help to mitigate volatility and manage inflation risk, credit risk and interest rate risk through diversification, with the overall goal of capturing income. ADTs provide investors with potential monthly income, daily liquidity, reasonable fees and a disciplined investment approach for a wide range of investment objectives and risk tolerance levels.

ADTs can invest in a variety of securities including municipal and corporate bonds, U.S. government securities, common or preferred stock, domestic and international securities, and mortgage-backed securities.

ADT disciplines are developed, researched and evaluated using database screening techniques, fundamental analysis and the judgment of professional research analysts. The underlying securities are professionally selected to meet a stated investment objective such as income, growth or both.

Generally, there is a $1,000 minimum investment for ADT units. You can buy units of the trust on any business day the New York Stock Exchange is open by contacting your financial professional. If you do not have an investment advisor, you can call Advisor’s Asset Management at 866.606.7220, x133 and we will help you locate someone in your area.

Although many investors purchase units with the intention of holding them until maturity, ADT units may be redeemed on any business day at the redemption price, which may be more of less than the original purchase price. By law, trusts are required to redeem units at their net asset value, which is derived form the current market value of the underlying securities. It is important to note that, when redeemed, any outstanding deferred sales charges will also be collected.

Unit prices are available daily on the internet at www.AAMportfolios.com or through your financial professional.

ADTs have mandatory maturity dates that generally range from 15 months to 5 or more years. The exact range will vary according to the specific discipline employed and the underlying assets and is described in the ADT prospectus. When an ADT matures, the unit holder has a few different options.

• Rollover – The unit holder has the option to reinvest into the next portfolio series, if available, or other available ADTs at a reduced sales charge.
• Cash – When the ADT terminates, the underlying securities are sold and cash is distributed to unit holders.
• In-Kind Distribution – Under certain conditions which are outlined in the ADT’s prospectus, unit holders may choose to receive a distribution in-kind of the underlying securities held in the portfolio. This option may reduce the value of the distribution as a result of customer transfer and registration charges.

ADTs are cost effective investments. Typically, investors pay a one time sales charge or load when units are initially purchased, and a deferred sales charge paid at a later date. The offering price reflects both the NAV plus the initial sales charge. Sales charge discounts are available for larger purchases. In addition, there are two other fees associated with ADTs: a one time organizational cost and annual operating expenses which cover the operating expenses and reimburse the trust sponsor for supervisory activities, organization costs and a creation & development fee.

Unlike mutual funds, ADTs are monitored, not managed; therefore there are no ongoing marketing or management fees. Additionally, transaction costs are minimal because the buying and selling of underlying securities is limited.

ADTs generally pay income tax on interest, dividends and/or capital gains distributed to investor. For retirement accounts, such as IRAs, taxes are typically deferred until distributions are taken from the account. Should the investor sell, exchange, or roll their units, they will receive a taxable gain or loss on those securities which should be reported on income tax returns. Certain ADT may produce income that is exempt from federal and/or state taxation.

AAM does not provide tax advice. As with any investment, you should seek advice based on your individual circumstances from your own tax advisor.

ADTs are better suited for investors with defined investment goals and income needs. Before considering any type of investment, you should carefully analyze your current financial situation including your investment objectives, age, income, time horizon, diversification and liquidity needs, and risk tolerance level. There are many ADT structures which may be appropriate for your defined investment goals.

Your financial advisor can help you to determine which ADT may be appropriate for your particular investment situation.

Yes, ADTs may be an attractive investment for IRAs or self-employed retirement plans. ADTs can be a good diversifying tool providing exposure to various asset classes and investment strategies.

ADTs are unit investment trusts and are sold only by prospectus. They are registered under the Investment Company Act of 1940 which defines the responsibilities and limitations placed on fund companies offering investment products to the public, including filing, service charges, financial disclosure and fiduciary duties. These guidelines are enforced and regulated by the Securities and Exchange Commission (SEC).