First Trust Active Dividend Income Fund (FAV)

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	Fact Sheet

Fund Summary

Investment Objective/Strategy - The First Trust Active Dividend Income Fund is a diversified, closed-end management investment company. The Fund's primary investment objective is to seek a high level of current income. It has a secondary objective of capital appreciation. The Fund will seek to achieve its investment objectives by investing at least 80% of its Managed Assets in a diversified portfolio of dividend-paying multi-cap equity securities of both U.S. and non-U.S. issuers that the Fund's investment sub-advisor believes offer the potential for attractive income and/or capital appreciation.

There can be no assurance that the Fund's investment objectives will be achieved.

Fund Overview

Ticker	FAV
Fund Type	Equity Income
Investment Advisor	First Trust Advisors L.P.
Portfolio Manager/Sub-Advisor	Aviance Capital Management, LLC
Investor Servicing Agent	BNY Mellon Investment Servicing (US) Inc.
CUSIP	33731L100
Fiscal Year-End	11/30
Exchange	NYSE
Inception	9/20/2007
Inception Price	$20.00
Inception NAV	$19.10

Current Fund Data (as of 5/17/2013)

Closing NAV¹	$9.49
Closing Share Price²	$8.44
Discount to NAV	11.06%
Total Net Assets	$78,373,529
Common Shares Outstanding	8,259,517
Dividend Frequency	Quarterly
Dividend Per Share Amt³	$0.1500
Distribution Rate⁴	7.11%
Daily Volume	39,909
Average 30-Day Daily Volume	33,218
Closing Share Price 52-Week High/Low	$8.49 / $7.17
Closing NAV 52-Week High/Low	$9.49 / $8.28

Expense Ratios (as of 11/30/2012)

Annual Expenses	Percent of Net Assets
Management Fees	1.00%
Other Expenses	0.48%

Total Annual Expenses	1.48%

Leverage Information⁶

The Fund currently has no outstanding leverage.

Portfolio Composition (as of 3/31/2013)⁷

	Sector	Percent
	Financials	19.85%
	Energy	15.13%
	Industrials	13.99%
	Consumer Staples	11.69%
	Health Care	8.62%
	Consumer Discretionary	8.23%
	Information Technology	7.49%
	Utilities	5.36%
	Telecommunication Services	4.96%
	Materials	4.68%

Share Price and NAV History (Since Inception)

Past performance is not indicative of future results.

Volume (Since Inception)

% Premium/Discount (Since Inception)

Cumulative Total Returns (as of 4/30/2013)⁵

Period	Share Price	NAV
3 Months	5.53%	5.86%
1 Year	7.38%	6.94%
3 Years	-7.64%	16.10%
5 Years	-2.41%	-0.21%
Year to Date	13.89%	11.26%
Inception to Date	-16.92%	-3.42%

Calendar Year Returns (as of 12/31/2012)⁵

Period	Share Price	NAV
2008	-30.03%	-35.62%
2009	45.83%	21.68%
2010	-0.93%	9.68%
2011	-15.47%	-0.59%
2012	-1.81%	-0.31%

Average Annual Returns (as of 4/30/2013)⁵

Period	Share Price	NAV
3 Years	-2.62%	5.10%
5 Years	-0.49%	-0.04%
Inception to Date	-3.25%	-0.62%

Top Holdings (as of 3/31/2013)⁷

Holding	Percent
XL Group PLC	2.37%
Energy Transfer Partners L.P.	2.24%
Exelon Corp.	2.24%
Stanley Black & Decker, Inc.	2.22%
Morgan Stanley	2.21%
Pfizer, Inc.	2.21%
PNC Financial Services Group, Inc.	2.18%
McDonald's Corp.	2.17%
Citigroup, Inc.	2.15%
General Electric Co.	2.13%

Footnotes

¹	The NAV represents the fund's net assets (assets less liabilities) divided by the fund's common shares outstanding.
²	Fund shares are purchased and sold on an exchange at their share price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
³	Most recent distribution paid or declared through today's date. Subject to change in the future.
⁴	Distribution rates are calculated by annualizing the most recent distribution paid or declaration through today's date and then dividing by the most recent market price. Distribution Rates May Vary. Any distribution adjustment will not be reflected until after the declaration date for the next distribution. The distribution rate may include realized short-term capital gains and/or a return of capital. See the fund's 19a-1 Notices, if any, located under the "News & Literature" section of the website for estimates of distribution sources other than income. Final determination of the source and tax status of all distributions paid in the current year will be made after year-end.
⁵	Total return is the combination of reinvested dividend income and reinvested capital gains distributions, at prices obtained by the Dividend Reinvestment Plan, if any, and changes in the NAV and Share Price. The NAV total return takes into account the fund's total annual expenses and does not reflect sales load. Past performance is not indicative of future results.
⁶	Leverage is a technique where a closed-end fund's manager borrows assets at one rate and invests the proceeds from the borrowed assets at another rate, seeking to increasing yield and total return. Use of leverage can result in additional risk and cost, and can magnify the effect of any losses.
⁷	Market value information used in calculating the percentages is based upon trade date plus one recording of transactions, which can differ from regulatory financial reports (Forms N-CSR and N-Q) that are based on trade date recording of security transactions. Holdings are subject to change.

Risk Considerations

Investment and market risk, management risk, sub-advisor risk, value investing risk, dividend strategy risk, qualified dividend tax risk, equity securities risk, small and medium cap company risk, non-U.S. securities risk, emerging markets risk, preferred stock risk, convertible securities risk, REIT risk, master limited partnership risk, fixed-income securities risk, market discount from net asset value risk, derivatives risk, portfolio turnover risk, leverage risk, market disruption risk, defensive positions risk, inflation risk, certain affiliations risk, anti-takeover risk, secondary market for the Fund's shares, and lending portfolio securities risk.

Qualified Dividend Tax Risk: There can be no assurance as to what portion of the distributions paid to the Fund's Common Shareholders will consist of tax-advantaged qualified dividend income. Certain distributions designated by the Fund as derived from qualified dividend income will be taxed in the hands of non-corporate Common Shareholders at the rates applicable to long-term capital gain, provided certain holding period and other requirements are satisfied by both the Fund and the Common Shareholders. Additional requirements apply in determining whether distributions by foreign issuers should be regarded as qualified dividend income. Certain investment strategies of the Fund will limit the Fund's ability to meet these requirements and consequently will limit the amount of qualified dividend income received and distributed by the Fund.

The risks of investing in the Fund are spelled out in the prospectus, shareholder report and other regulatory filings.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value