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Share Classes
Class I
Class II
First Trust Multi Income Allocation Portfolio
Investment Objective/Strategy - The First Trust Multi Income Allocation Portfolio's (the “Fund”) primary investment objective is to maximize current income, with a secondary objective of capital appreciation.
There can be no assurance that the Fund's investment objectives will be achieved.
The Fund seeks to achieve its objectives through diversified exposure to nine income generating asset classes: dividend-paying stocks, preferred stocks, energy infrastructure companies and master limited partnerships ("MLPs"), real estate investment trusts ("REITs"), high yield or "junk" bonds, floating rate loans, corporate bonds, mortgage-backed securities and Treasury Inflation Protected Securities ("TIPS"). The Fund will be actively managed by the advisor and implementing the strategy involves multiple portfolio managers.
The advisor will tactically adjust allocation weights in a manner deemed to offer attractive levels of total return relative to the level of expected risk. The advisor intends to adjust asset allocation weights quarterly but may do so more or less frequently depending upon market conditions. The maximum weight of any asset class, at the time of adjustment, will be 20%. The minimum weight of any asset class, at the time of adjustment, will be 5%.
The Fund may, at certain times, invest in exchange-traded funds ("ETFs") that generally provide exposure to the nine asset classes in lieu of investing directly in such assets classes.
In general, the U.S. dollar-denominated fixed income securities in which the Fund invests may be issued by U.S. and non- U.S. issuers, of any credit quality, including high yield securities. The high yield securities in which the Fund invests are rated below investment grade at the time of purchase or unrated and deemed by the advisor to be of comparable quality, commonly referred to as "junk" bonds. The Fund also invests in the equity securities of domestic and foreign issuers listed on a U.S. or foreign securities exchange and non-U.S. securities that are listed on a U.S. securities exchange in the form of American Depository Receipts ("ADRs") and Global Depository Receipts ("GDRs") (collectively, "Depository Receipts"). The Fund may invest in equity securities issued by small, mid or large capitalization companies.
The Fund offers its shares only to separate accounts of insurance companies that offer variable annuity and variable life insurance products.
Fund Overview
Fiscal Year-End12/31
Inception Date5/1/2014
Inception NAV$10.00
Gross Expense Ratio
Net Expense Ratio1.12%
Expenses are capped contractually at 1.20% per year, at least until May 1, 2017.
Current Fund Data (as of 2/17/2017)
Net Asset Value1$10.77
Dividend FrequencySemi-Annual
NAV 52-Week High/Low$10.77 / $9.66
NAV History (Since Inception)
Past performance is not indicative of future results.
Month End Performance (as of 1/31/2017)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Fund Performance 2.40% 0.95% 11.90% N/A N/A N/A 4.07%
Index Performance **
Bloomberg Barclays U.S. Aggregate Bond Index -2.04% 0.20% 1.45% N/A N/A N/A 2.31%
Russell 3000® Index 8.52% 1.88% 21.73% N/A N/A N/A 9.12%
Broad Blended Benchmark 2.12% 0.87% 9.26% N/A N/A N/A 5.15%
Multi Asset Class Blended Benchmark 3.51% 1.46% 15.39% N/A N/A N/A 3.92%
Quarter End Performance (as of 12/30/2016)
  3 Mos YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Fund Performance -0.08% 9.27% 9.27% N/A N/A N/A 3.84%
Index Performance **
Bloomberg Barclays U.S. Aggregate Bond Index -2.98% 2.65% 2.65% N/A N/A N/A 2.31%
Russell 3000® Index 4.21% 12.74% 12.74% N/A N/A N/A 8.67%
Broad Blended Benchmark -0.10% 6.77% 6.77% N/A N/A N/A 4.97%
Multi Asset Class Blended Benchmark 0.11% 10.31% 10.31% N/A N/A N/A 3.48%

*Performance data quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares when sold or redeemed, may be worth more or less than their original cost. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative.

Fund expenses and return figures do not reflect the deduction of sales charges or other expenses associated with variable products. If such fees were included, expenses would be higher and the performance would be lower. The Fund's performance reflects fee waivers and expense reimbursements, absent which performance would have been lower.

**Indexes are unmanaged and an investor cannot invest directly in an index.

The gross expense ratio for this fund is 2.89%. Expenses are capped contractually at 1.20% per year, at least until May 1, 2017.

The Broad Blended Benchmark - return is split between the Bloomberg Barclays U.S. Aggregate Bond Index (60%) and the Russell 3000® Index (40%).

The Multi Asset Class Blended Benchmark - weighted to include nine indexes: Russell 3000 Index (15%), BofA Merrill Lynch Fixed Rate Preferred Securities Index (8%), Alerian MLP Index (15%), S&P U.S. REIT Index (15%), BofA Merrill Lynch U.S. High Yield Index (8%), S&P/LSTA Leveraged Loan Index (15%), Bloomberg Barclays U.S. Corporate Investment Grade Index (8%), BofA Merrill Lynch U.S. MBS Index (8%), BofA Merrill Lynch U.S. Inflation-Linked Treasury Index (8%).

The Bloomberg Barclays U.S. Aggregate Bond Index represents the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. Bonds included in the index are U.S. dollar denominated; have a fixed rate coupon; carry an investment-grade rating; have at least one year to final maturity; and meet certain criteria for minimum amount of outstanding par value.

The Russell 3000® Index is composed of 3,000 large U.S. companies, as determined by market capitalization. This index represents approximately 98% of the investable U.S. equity market.

The BofA Merrill Lynch Fixed Rate Preferred Securities Index tracks the performance of fixed-rate U.S. dollar denominated preferred securities issued in the U.S. domestic market.

The Alerian MLP Index is a composite of the 50 most prominent energy master limited partnerships calculated using a float-adjusted market capitalization methodology.

The S&P U.S. REIT Index defines and measures the investable universe of publicly traded real estate investment trusts domiciled in the U.S.

The BofA Merrill Lynch U.S. High Yield Index tracks the performance of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market.

The S&P/LSTA Leveraged Loan Index is a market value-weighted index designed to measure the performance of the U.S. leverage loan market based upon market weightings, spreads, and interest payments.

The Bloomberg Barclays U.S. Corporate Investment Grade Index measures the performance of investment grade U.S. corporate bonds. The index includes all publicly issued, dollar-denominated corporate bonds with a minimum of $250 million par outstanding that are investment grade-rated (Baa3/BBB- or higher). The index excludes bonds having less than one year to final maturity as well as floating rate bonds, non-registered private placements, structured notes, hybrids, and convertible securities.

The BofA Merrill Lynch U.S. MBS Index measures the performance of investment grade fixed-rate mortgage-backed pass-through securities of GNMA, FNMA, and FHLMC.

The BofA Merrill Lynch U.S. Inflation-Linked Treasury Index is an unmanaged index comprised of U.S. Treasury Inflation Protected Securities with at least $1 billion in outstanding face value and a remaining term to final maturity of greater than one year.

Blended Benchmarks and Indexes reflect no deduction for fees, expenses, or taxes.

1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's outstanding shares .
2 Inception Date is 5/1/2014

You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. You can download a prospectus or contact First Trust Portfolios, L.P. at 1-800-621-1675 to request a prospectus, which contains this and other information about the fund. Read it carefully before you invest.

Principal Risk Considerations

You could lose money by investing in the Fund.

CREDIT RISK. Credit risk is the risk that an issuer of a security will be unable or unwilling to make dividend, interest and/or principal payments when due and the related risk that the value of a security may decline because of concerns about the issuer's ability to make such payments.

CURRENCY EXCHANGE RATE RISK. The Fund may hold investments that are denominated in non-U.S. currencies, or in securities that provide exposure to such currencies, currency exchange rates or interest rates denominated in such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Fund�s investment and the value of Fund shares.

DEPOSITARY RECEIPTS RISK. Depositary receipts may be less liquid than the underlying shares in their primary trading market. Any distributions paid to the holders of depositary receipts are usually subject to a fee charged by the depositary.

DIVIDEND RISK. There is no guarantee that the issuers of the Fund's equity securities will declare dividends in the future or that, if declared, they will either remain at current levels or increase over time.

ENERGY INFRASTRUCTURE COMPANIES RISK. Energy infrastructure companies are subject to significant U.S., state and local government and/or foreign government regulation in virtually every aspect of their operations, including how facilities are constructed, maintained and operated, environmental and safety controls, and the prices they may charge for the products and services. Various governmental agencies and authorities have the power to enforce compliance with these regulations, and violators may be subject to administrative, civil and criminal penalties, including civil monetary penalties, imposition of remedial requirements, injunctions or all of the above. Stricter laws, regulations or enforcement policies could be enacted in the future, which would likely increase compliance costs and may adversely affect the financial performance of energy infrastructure companies. In addition, taxes, government regulation, price and supply fluctuations, volatile interest rates and counter party risk. Such issuers have been experiencing certain of these problems to varying degrees. Energy infrastructure companies may be directly affected by energy commodity prices, especially those companies that own the underlying energy commodity.

EQUITY SECURITIES RISK. Because the Fund invests in equity securities, the value of the Fund�s shares will fluctuate with changes in the value of these equity securities. Equity securities prices fluctuate for several reasons, including changes in investors� perceptions of the financial condition of an issuer or the general condition of the relevant stock market, such as market volatility, or when political or economic events affecting the issuers occur. In addition, common stock prices may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. The equity markets have experienced recent volatility that may lead to sharp declines in the value of the equity securities and the Fund.

EXCHANGE-TRADED FUND (ETF) RISK. The risks of owning an ETF generally reflect the risks of owning the underlying securities, although lack of liquidity in an ETF could result in it being more volatile and ETFs have management fees and other operating expenses that increase their costs.

FINANCIAL COMPANIES RISK. Financial companies are especially subject to the adverse effects of economic recession, currency exchange rates, government regulation, decreases in the availability of capital, volatile interest rates, portfolio concentrations in geographic markets and in commercial and residential real estate loans, and competition from new entrants in their fields of business.

FIXED-INCOME SECURITIES RISK. The risks associated with an investment in fixed-income securities include a reduction in the ability of the issuer to meet its payment obligations and might result in increased credit risk. In addition, certain of the securities may be redeemed or prepaid by the issuer, resulting in lower interest payments received by the Fund and reduced distributions to shareholders.

HIGH-YIELD SECURITIES RISK. High-yield securities, or "junk" bonds, are subject to greater market fluctuations and risk of loss than securities with higher ratings, and therefore, are considered to be highly speculative. If the economy slows down or dips into recession, the issuers of high-yield securities may not have sufficient resources to continue making timely payment of periodic interest and principal at maturity. The market for high-yield securities is smaller and less liquid than that for investment-grade securities. High-yield securities are generally not listed on a national securities exchange but trade in the over-the-counter markets. Due to the smaller, less liquid market for high-yield securities, the bid-offer spread on such securities is generally greater than it is for investment-grade securities and the purchase or sale of such securities may take longer to complete. In general, high-yield securities may have a greater risk of default than other types of securities.

ILLIQUID SECURITIES RISK. Illiquid securities involve the risk that the securities will not be able to be sold at the time desired by the Fund or at prices approximately the value at which the Fund is carrying the securities on its books.

INCOME RISK. Income from the Fund's fixed-income investments could decline during periods of falling interest rates.

INTEREST RATE RISK. Interest rate risk is the risk that the value of the fixed-income securities in the Fund will decline because of rising market interest rates. Interest rate risk is generally lower for shorter-term investments, which generally have shorter durations, and higher for longer-term investments. Additionally, the return on the floating rate loans in which the Fund may invest will decline during a period of falling interest rates.

INVESTMENT COMPANIES RISK. The Fund may invest in the shares of other investment companies, and therefore, the Fund�s investment performance, expenses and risks may be related to the investment performance, expenses and risks of the underlying funds.

LOAN PREPAYMENT RISK. Loans are subject to prepayment risk. The degree to which borrowers prepay loans, whether as a contractual requirement or at their election, may be affected by general business conditions, the financial condition of the borrower and competitive conditions among loan investors, among others. As such, prepayments cannot be predicted with accuracy. Upon a prepayment, either in part or in full, the actual outstanding debt on which the Fund derives interest income will be reduced. The Fund may not be able to reinvest the proceeds received on terms as favorable as the prepaid loan.

LOAN RISK. An investment in loans subjects the Fund to credit risk, which is heightened for loans in which the Fund invests because companies that issue such loans tend to be highly leveraged and thus are more susceptible to the risks of interest deferral, default and/or bankruptcy. The loans are usually rated below investment-grade but may also be unrated.

MANAGEMENT RISK. The Fund is subject to management risk because it is an actively managed portfolio. In managing the Fund�s investment portfolio, the Fund�s Advisor and Sub-Advisors will apply investment techniques and risk analyses that may not have the desired result.

MARKET RISK. Securities are subject to market fluctuations caused by such factors as economic, political, regulatory or market developments, changes in interest rates and perceived trends in securities prices. Shares of the Fund could decline in value or underperform other investments.

MLP TAX RISK. An investment in MLP units involves risks which differ from an investment in common stock of a corporation. Holders of MLP units have limited control and voting rights on matters affecting the partnership. In addition, there is the risk that an MLP could be, contrary to its intention, taxed as a corporation, resulting in decreased returns from such MLP.

MORTGAGE SECURITIES RISK. Mortgage-related securities, including mortgage-backed securities, may make the Fund more susceptible to adverse economic, political or regulatory events that affect the value of real estate. Changes in local, state and federal policies could negatively impact the mortgage-related securities market, which include various government initiated and sponsored homeowner assistance programs and eminent domain issues. Mortgage-related securities are subject to the risk that the rate of mortgage prepayments decreases, which extends the average life of a security and increases the interest rate exposure.

NON-U.S. SECURITIES AND EMERGING MARKETS RISK. Non-U.S. securities are subject to higher volatility than securities of domestic issuers due to possible adverse political, social or economic developments; restrictions on foreign investment or exchange of securities; lack of liquidity; currency exchange rates; excessive taxation; government seizure of assets; different legal or accounting standards; and less government supervision and regulation of exchanges in foreign countries. These risks may be heightened for securities of companies located in, or with significant operations in, emerging market countries.

PREFERRED SECURITIES RISK. Preferred securities are typically subordinated to bonds and other debt instruments in a company's capital structure in terms of priority to corporate income, and therefore will be subject to greater credit risk than those debt instruments.

REAL ESTATE INVESTMENT TRUST INVESTMENT RISK. Risks associated with investing in real estate, may include, but are not limited to, fluctuations in the value of underlying properties; defaults by borrowers or tenants; market saturation; changes in general and local operating expenses; and other economic, political or regulatory occurrences affecting companies in the real estate industry.

SMALL FUND RISK. The Fund currently has fewer assets than larger funds, and like other relatively smaller funds, large inflows and outflows may impact the Fund�s market exposure for limited periods of time.

SMALLER COMPANIES RISK. The Fund invests in small and/or mid- capitalization companies. Such companies may be more vulnerable to adverse general market or economic developments, and their securities may be less liquid and may experience greater price volatility than larger, more established companies.

TIPS RISK. TIPs are inflation-indexed fixed-income securities issued by the U.S. Department of Treasury and are subject to the same risks as other fixed-income investments. In a falling inflationary environment, both interest payments and the value of the TIPS will decline.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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