SERIES10
diversified dividend & income portfolio series 10
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DAILY DATA
as of
3/19/10
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Portfolio Status
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Primary
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Offer Price1
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$10.951600
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Bid Price2
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$10.951600
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Liquidation Price3
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$10.606600
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1 The "offer" price represents the net asset value of one unit
of a trust plus a transactional sales charge.
2 The "bid" price represents the net asset value of one unit
of a trust excluding deferred sales charge.
3 The "liquidation" price represents the net asset value of
one unit of a trust and includes any front-end and deferred sales charges accounted
for if investors liquidate units.
4 The Historical Annual Dividend Distribution is as of date of deposit. The amount of distributions of the Trust may be lower or greater than the above-stated
amount due to certain factors that may include, but are not limited to, a change
in the dividends paid by issuers, a change in Trust expenses or the sale or maturity
of securities in the portfolio. Fees and expenses of the Trust may vary as a result
of a variety of factors including the Trust's size, redemption activity, brokerage and
other transaction costs and extraordinary expenses.
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DEPOSIT INFORMATION
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Inception Date
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9/23/2009
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Mandatory Termination Date
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9/28/2011
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NASDAQ Ticker Symbol
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CDDIJX
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Inception Unit Price
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$10.000000
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Inception Bid Price
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$10.000000
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Inception Liquidation Price
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$9.655000
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Historical Annual Dividend Distribution4
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$0.30210
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Deferred Sales Charge Dates
5
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Apr 2010
May 2010
Jun 2010
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| CUSIP - Monthly-Cash |
18387F564 |
| CUSIP - Monthly-Reinvest |
18387F572 |
| CUSIP - Monthly-Fee/Cash |
18387F580 |
| CUSIP - Monthly-Fee/Reinvest |
18387F598 |
5 Early redemption of units will still cause payment of deferred sales charge.
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Past performance is no guarantee of future results. Investment returns and principal value will fluctuate with changes in market conditions. Investors' units, when redeemed, may be worth more or less than their original cost.
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INVESTMENT OBJECTIVE
The Diversified Dividend & Income Portfolio, Series 10 ("Trust") seeks to provide dividend income potential coupled with the potential for long-term capital appreciation.
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PRINCIPAL INVESTMENT STRATEGY
The Trust consists of a diversified portfolio of dividend-paying equity securities. The Sponsor believes that dividends are often a good indicator of a corporation’s current financial condition and furthermore, may signal management’s belief in a profitable future for the corporation. Investors seeking to return to the often volatile equity markets may consider the income available from a group of dividend-paying securities as a logical first step toward reentry into such markets.
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SELECTION CRITERIA
The Sponsor selects domestic companies that it believes are core holdings of a well-diversified domestic dividend-paying portfolio. To select the portfolio the Sponsor follows a disciplined process which includes both quantitative screening and qualitative analysis. The Sponsor begins with the companies currently in the Russell 3000® Index and identifies a universe of securities with higher indicated dividend yields than their average counterpart within the same Global Industry Classification Standards (“GICS”) sector, excluding real estate investment trusts. From this universe of approximately 400 companies, the Sponsor identifies 42 companies for inclusion in the portfolio through a qualitative analysis, which may be primarily based on, but not limited to, the following factors:
- Cash-flow Adequacy: The Sponsor favors companies with recent earnings, operating cash-flow, and free cash-flow significantly higher than the dividends paid.
- Balance Sheet: The Sponsor favors companies that possess overall financial strength and exhibit balance sheet improvements relative to their peers and the marketplace.
- Valuation: The Sponsor favors companies whose valuations appear to be attractive based on measures such as price-to-earnings, price-to-book and price-to-cash flow.
- Industry Leadership: The Sponsor favors companies that possess a strong competitive position among their domestic and global peers.
- Growth: The Sponsor favors companies with a history of (and prospects for) above average growth of dividends, sales and earnings.
For the final step the Sponsor weights the selected securities such that the portfolio has no more than approximately 20% of its net assets (as of the date of deposit) in any one given GICS sector. The Sponsor believes that one factor that may provide increased returns for shareholders over long periods of time is dividend reinvestment. Reinvesting dividends has historically had a significant compounding effect on investor returns. However, there is no guarantee that dividend reinvestment will have such a compounding effect on investor returns in the future.
The Russell 3000® Index
The Russell 3000® Index offers investors access to the broad U.S. equity universe representing approximately 98% of the U.S. market. The Russell 3000® is constructed to provide a comprehensive, unbiased, and stable barometer of the broad market and is completely reconstituted annually to ensure new and growing equities are reflected.
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RISKS AND OTHER CONSIDERATIONS
As with all investments, you may lose some or all of your investment in the Trust. No assurance can be given that the Trust’s investment objective will be achieved. The Trust also might not perform as well as you expect. This can happen for reasons such as these:
- Securities prices can be volatile. The value of your investment may fall over time. Market value fluctuates in response to various factors. These can include stock market movements, purchases or sales of securities by the Trust, government policies, litigation, and changes in interest rates, inflation, the financial condition of the securities’ issuer or even perceptions of the issuer. Units of the Trust are not deposits of any bank and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
- Due to the current state of the economy, the value of the securities held by the Trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers. In the last year, economic activity has declined across all sectors of the economy, and the United States is experiencing increased unemployment. The current economic crisis has affected the global economy with European and Asian markets also suffering historic losses. Extraordinary steps have been taken by the governments of several leading economic countries to combat the economic crisis; however, the impact of these measures is not yet known and cannot be predicted.
- Share prices or dividend rates on the securities in the Trust may decline during the life of the Trust. There is no guarantee that the issuers of the securities in the Trust will declare dividends in the future and, if declared, whether they will remain at current levels or increase over time.
- The Trust includes securities issued by small-capitalization and mid-capitalization companies. These securities customarily involve more risk than large-capitalization or more seasoned securities. Small-capitalization and mid-capitalization companies may have limited product lines, markets or financial resources and may be more vulnerable to adverse general market or economic developments.
- Inflation may lead to a decrease in the value of assets or income from investments.
- The Sponsor does not actively manage the portfolio. The Trust will generally hold, and may continue to buy, the same securities even though a security’s outlook, market value or yield may have changed.
Please see the Trust prospectus for more complete risk information.
UITs are fixed and not actively managed. Investors can lose some or all of their investment in this Trust. An investment in this fixed portfolio should be made with an understanding of the risks involved with owning various types of investments. Industry predictions may not materialize and securities selected for the Trust may not participate in overall industry growth, if any. There is no guarantee that this portfolio will achieve its investment objective. The economic condition of the issuers of the securities in this portfolio as well as the stock market, in general, may worsen and therefore reduce the value of the units of the portfolio.
This UIT is part of a long-term strategy, and investors should consider their ability to invest in successive portfolios at the applicable sales charge, if available. There are tax consequences associated with an investment from one series to the next. Investors should consult their tax advisor to determine tax consequences associated with an investment from one portfolio to the next. Units of certain portfolios may be well suited for purchase by Individual Retirement Accounts or other qualified retirement plans. Consult your attorney or tax advisor regarding tax consequences associated with the purchase of units. Claymore Securities, Inc. does not offer tax advice.
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Investors should carefully consider the investment objectives and policies, risk considerations, charges
and ongoing expenses of any investment product before investing. The prospectus contains this and other
relevant information. Please read the prospectus carefully before you invest. To obtain a prospectus,
please contact a securities representative or Claymore Securities, Inc., 2455 Corporate West Drive, Lisle,
Illinois 60532, 800-345-7999, or download one by accessing the Literature section
of this website.
NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE
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