SEC Form NSAR-U

SEC Form NSAR-U is an annual filing with the Securities and Exchange Commission (SEC) that unit investment trusts (UITs) are required to make at the end of their fiscal year. This type of filing is specific to registered investment management companies and trusts which are required to disclose some financial information (i.e. sales of shares, portfolio turnover rate, etc.) included in the company's annual and/or semi-annual shareholder reports to the SEC.

SEC Form NSAR-U and all of its related filings are covered under Section 30 of the Investment Company Act of 1940 ("1940 Act") and Sections 13 and 15(d) of the Securities Exchange Act of 1934. This requires investment companies and trusts to file semi-annual and annual reports with the SEC.

A unit investment trust (UIT) is an investment company that offers a fixed portfolio, generally of stocks and bonds, as redeemable units to investors for a specific period of time. It is designed to provide capital appreciation and/or dividend income. Unit investment trusts, along with mutual funds and closed-end funds, are defined as investment companies by the SEC.

Investment companies offer individuals the opportunity to invest in a diversified portfolio of securities with a low initial investment requirement. UITs are sold by investment advisors and an owner can redeem the units to the fund or trust, rather than placing a trade in the secondary market. A UIT is either a regulated investment corporation (RIC) or a grantor trust. A RIC is a corporation in which the investors are joint owners, and a grantor trust grants investors proportional ownership in the UIT's underlying securities.

Investors can redeem mutual fund shares or UIT units at net asset value (NAV) to the fund or trust either directly or with the help of an investment advisor. NAV is defined as the total value of the portfolio divided by the number of shares or units outstanding and the NAV is calculated each business day. On the other hand, closed-end funds are not redeemable and are sold in the secondary market at the current market price. The market price of a closed-end fund is based on investor demand and not as a calculation of net asset value.

Guggenheim's Global 100 Dividend Strategy Portfolio Series 14 (CGONNX) has an objective to provide dividend income. It contains 100 diversified positions: 45.16 percent is invested in large cap stocks, 26.94 percent in mid caps and 27.90 percent in small caps. Further, only roughly half of the securities are invested in U.S. stocks, with the balance invested in many other countries. Allocation reflects many sectors as well. Each company it holds represents roughly 1 percent of the portfolio.