EQUITY - THEMATIC PORTFOLIOS

Series 2024-2, ADT 2253

PENCE Human Behavior Core Strategy Portfolio

Morningstar Equity Style BoxTM Investment Objective & Strategy
The trust seeks to achieve its objective by investing in a portfolio of stocks of companies selected by
Pence Capital Management, LLC (the “Portfolio Consultant”) that derive a substantial portion of their
revenues from sales directly to U.S. consumers selected using an investment strategy based on
human behavior, which is captured by Maslow’s Hierarchy of Needs. Abraham Maslow’s theory is that
the most basic needs (starting with physiological) must be met before a human being becomes
motivated to fulfill higher levels of needs (ending with self-actualization).
The Portfolio Consultant simplifies Maslow Hierarchy of Needs for purposes of the strategy into three
need levels (in ascending order): basic, social and personal and adjusts it for different income groups
and then compares it with Personal Consumption Expenditure (“PCE”) data. The Portfolio Consultant
Ticketing Information believes that PCE, which accounts for about two-thirds of domestic final spending, is the primary
CUSIP (Cash/Reinvest) 00782W467 / 475 measure of consumer spending on goods and services in the U.S. economy and provides clues on
Fee-Based CUSIP (Cash/Reinvest) 00782W483 / 491 what consumers buy and how consumer behavior changes over time.
Ticker Symbol HBSARX
The Portfolio Consultant starts its selection process with the companies in the Russell 3000® Index.
Essential Information From those companies, the Portfolio Consultant seeks to assemble a portfolio of companies that
directly interface with consumers and that fulfill the different levels of human need in different income
Unit price at inception (per unit) $10.000
Initial redemption price (per unit) $9.7750 categories. Companies were then identified based on whether or not they were at a “Choke Point”. The
Initial date of deposit 12/6/2024 Portfolio Consultant defines a Choke Point as a place and point in time in the supply chain where only
Portfolio ending date 12/7/2026 a few companies dominate the process of how consumers fulfill their needs. The Portfolio Consultant
Distribution frequency Quarterly, if any believes these companies will have the potential to adapt, evolve, and gain market shares as
Number of Holdings 77 technology and consumer behavior change over time.
Historical 12-Month Distribution From the securities of companies that the Portfolio Consultant identified as being at the Choke Points
Rate of Trust Holdings* 1.31% in their industries, the Portfolio Consultant seeks to identify securities with relatively lower levels of
*The distribution rate paid by the trust may be higher or volatility based on each company’s upside/downside capture ratios.
lower than the amount shown above due to factors
including, but not limited to, changes in the price of trust
units, changes (including reductions) in distributions paid by Maslow’s Hierarchy of Needs
issuers, changes in actual trust expenses and sales of
securities in the portfolio. There is no guarantee that the Can we predict how the consumer
issuers of the securities included in the trust will pay any spending trend will continue? The
distributions in the future. The Historical 12-Month
Distribution Rate of Trust Holdings is calculated by taking strategy aims to bring Maslow’s
the weighted average of the regular income distributions Hierarchy of Needs and Personal
paid by the securities included in the trust’s portfolio over Consumption Expenditure (PCE)
the 12 months preceding the trust’s date of deposit reduced together to help determine demand in
to account for the effects of trust fees and expenses. The consumer spending.
percentage shown is based on a $10 unit price. This
historical rate is for illustrative purposes only and is not
indicative of amounts that will actually be distributed by the
trust.

Sales Charge and Expenses

(Based on initial unit price of $10.000)+
Amount per
unit (based on
As % of Public initial unit
Offering Price price) +All amounts are as of 12/6/2024 and may vary thereafter. The Initial Sales Fee is the difference between
Initial Sales Fee 0.00% $0.000 the Total Sales Fee (maximum of 2.75% of the unit offering price) and the sum of the remaining Deferred
Sales Fee and the total Creation and Development Fee. The Deferred Sales Fee is fixed at $0.225 per
Deferred Sales Fee 2.25% $0.225
unit and is paid in three monthly installments with the first installment commencing on June 20, 2025, the
Creation & Development Fee + 0.50% $0.050 second installment on July 20, 2025 and the final installment on August 20, 2025. The Creation &
Total Sales Fee 2.75 % 0.275 Development Fee is fixed at $0.05 per unit and is paid at the end of the initial offering period (anticipated to
be approximately six months). The Organization Costs are fixed at $0.049 per unit and are paid at the end
Organization Costs + 0.49% $0.049
of the initial offering period or after six months, if earlier. The table is for illustrative purposes only to
Total One-Time Expense 3.24% $0.324 illustrate how estimated trust fees and expenses translate on an annualized basis. The above does not
Divided by Term of Trust Equals reflect the amount or how all fees and expenses will actually be paid. You should consult the prospectus
÷ 2 years ÷ 2 years for a full description of applicable sales charges and expenses of the trust, including those applicable to
Amortized One-Time Expense
Amortized One-Time Expense 1.62% $0.162
purchasers eligible for the fee-based account discount. The one-time charges shown (the Initial Sales Fee,
Deferred Sales Fee, Creation & Development Fee and Organization Costs) are paid on a one-time basis
Estimated Annual Operating + 0.27% +$0.027 as described and are not actually amortized over the life of the trust. The amount shown for “Amortized
Expense One-Time Expense” are calculated by taking the one-time dollar amounts and dividing them by the
Estimated Average 1.89% $0.189 anticipated life of the trust based on the trust’s inception date and mandatory termination date. The
Amortized Annual Expenses “Estimated Average Amortized Annual Expenses” is taken by adding the “Amortized One-Time Expense”
amount and “Estimated Annual Operating Expense” amounts.
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 PENCE Human Behavior Core Strategy Portfolio Series 2024-2, ADT 2253

Portfolio Holdings (as of date of deposit)

Ticker Market Value Ticker Market Value
Symbol Issue Name Per Share* Symbol Issue Name Per Share*
Communication Services (12.81%) Financials (16.34%)
GOOGL $172.64 ALL $204.23
T 23.83 AXP 300.53
CMCSA 42.79 ACGL 98.49
META 608.93 BAC 47.00
NFLX 917.87 BLK 1,044.78
SPOT 493.51 CB 286.62
TMUS 243.94 C 72.23
VZ 42.55 HIG 121.22
DIS 116.50 JPM 245.48
Consumer Discretionary (25.13%) LPLA 330.65
ABNB 136.32 MA 524.77
AMZN 220.55 MET 85.88
BURL 292.81 PGR 261.29
CMG 65.22 V 309.08
RACE 445.52 WFC 73.66
HLT 255.39 Health Care (13.53%)
HD 426.54 ABBV 176.17
LULU 344.81 BMY 58.84
LVMUY 128.57 CI 322.61
MAR 292.48 ELV 392.98
MCD 299.47 LLY 825.62
ORLY 1,234.81 JNJ 149.52
SONY 20.90 MRK 103.55
SBUX 99.23 NVO 108.82
TSLA 369.49 PFE 25.70
TXRH 196.31 UNH 578.97
TJX 125.92 Industrials (6.27%)
YUM 138.13 DAL 65.77
Consumer Staples (15.70%) FDX 279.42
MO 56.91 LYFT 15.50
CHD 109.16 UBER 65.23
KO 62.92 UPS 127.59
CL 95.10 Information Technology (3.65%)
STZ 239.50 AAPL 243.04
COST 982.26 MSFT 442.62
KR 60.71 Utilities (6.57%)
MDLZ 63.24 AEP 97.45
PEP 160.49 CEG 256.09
PG 176.03 D 56.91
TGT 129.17 DUK 114.01
WMT 95.30 NEE 76.20
SRE 90.94
*As of 12/5/2024 and may vary thereafter.
Pence Process
• Big Knowable Themes - U.S. companies benefiting from steady PCE growth, which accounts for about two-thirds of domestic final spending and is the primary engine
that drives future economic growth
• Identify Choke Points™ - Comprehensive industry analysis, understanding market structure, barriers to entry, and/or any regulatory oversights
• Target Quality Companies - Companies at the Choke Point can have pricing power which can translate to the potential for excess earnings
• Capture Cash Flow - Favor companies generating positive cash flow
• Mitigate Risk - Favor companies with strong fundamentals and relatively lower levels of volatility based on each company’s upside/downside capture ratios as calculated
using weekly price changes over the last five years. These companies can have potentials to be more stable in downturns and more profitable in periods of growth

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 PENCE Human Behavior Core Strategy Portfolio Series 2024-2, ADT 2253

Holdings Style Summary**

% of Portfolio
Large-Cap Blend 30.40%
Large-Cap Growth 16.32%
Large-Cap Value 29.50%
Mid-Cap Blend 8.40%
Mid-Cap Growth 6.40%
Mid-Cap Value 7.51%
Small-Cap Value 1.47%
Source: Morningstar
**As of 12/6/2024 and may vary thereafter. Breakdowns are based on the sources shown
and may differ from any category definitions used in selecting the trust portfolio.

Unit Investment Trusts (UITs) are sold only by prospectus. You should consider the trust’s investment objectives, risks, charges and expenses carefully
before investing. Contact your financial professional or visit Advisors Asset Management online at www.aamlive.com/uit to obtain a prospectus, which
contains this and other information about the trust. Read it carefully before you invest.

Risks and Considerations: Unit values will fluctuate with the portfolio of underlying securities and may be worth more or less than the original purchase price at
the time of redemption. There is no guarantee that the objective of the portfolio will be achieved. Additionally, the trust may terminate earlier than the specific
termination date as stated in the prospectus. Consult your tax advisor for possible tax consequences associated with this investment. An investment in this
unmanaged unit investment trust should be made with an understanding of the risks associated therewith which includes, but is not limited to:

Common Stock: An investment in common stocks should be made with an understanding of the various risks of owning common stock, such as an economic
recession and the possible deterioration of either the financial condition of the issuers of the equity securities or the general condition of the stock market.
Concentration Risk: The risk that the value of your trust is more susceptible to fluctuations based on factors that impact a particular industry because the portfolio
concentrates in securities issued by companies within that industry.
Dividend Payment Risk: An issuer of a security may be unwilling or unable to pay income on a security. Common stocks do not assure dividend payments and are
paid only when declared by an issuer’s board of directors. The amount of any dividend may vary over time.
Long-Term Strategy: The UIT matures in approximately 2 years and, as such, investors should consider their ability to reinvest any proceeds in a subsequent UIT,
if available, with a like or differing strategy, at the applicable sales charge.
The Morningstar Equity Style Box™: This table provides a graphical representation of the investment style of a trust based on holdings as of the date of deposit
which may vary thereafter. The Morningstar Equity Style Box™ placement is based on the Morningstar market capitalization classification (determined relative to
other stocks in the same geographic area) of the stocks in the trust’s portfolio (vertical axis), and by comparing the growth and value characteristics of the stocks in
the trust’s portfolio with growth and value factors developed by Morningstar (horizontal axis). Value, blend and growth are types of investment styles. Growth
investing generally seeks stocks that offer the potential for greater-than-average earnings growth, and may entail greater risk than value or blend investing. Value
investing generally seeks stocks that may be sound investments but are temporarily out of favor in the marketplace, and may entail less risk than growth investing.
A blended investment combines the two styles. ©2024 Morningstar, Inc. All Rights Reserved. The information contained herein relating to the Morningstar Equity
Style Box™: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Securities are available through your financial professional. For informational purposes only and not a recommendation to purchase or sell any security.
Not FDIC Insured. Not Bank Guaranteed. May Lose Value.
©2024 Advisors Asset Management, Inc. (AAM) is a SEC registered investment advisor and member FINRA/SIPC. Registration does not imply a certain level of
skill or training.
18925 Base Camp Road | Monument, CO 80132 | www.aamlive.com | CRN: 2023-1212-11302 R Link 9451

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