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Income Allocation Closed-End, 2nd Qtr 2017  Ticker: FQHULX
 
Description
The Income Allocation Closed-End Portfolio is a unit investment trust that invests in a diversified portfolio of equity and taxable bond closed-end funds that invest in U.S. and foreign securities. The portfolio seeks to provide investors with the potential for high current income, with capital appreciation as a secondary objective.
 
Summary
Product Code: IC2Q17
Portfolio Status: Secondary
Initial Offer Date: 04/10/2017
Secondary Date: 07/10/2017
Portfolio Ending Date: 07/09/2018
Tax Structure: Regulated Investment Company
Distributions: Monthly
 
Initial Offer Price: $10.0000
NAV(*): $9.8990
POP(*): $10.1476
Remaining Deferred Sales Charge: $0.0967
* As of Trade Date: 07/19/2017 4:00pm ET
The Public Offering Price (POP) represents the net asset value per unit plus any applicable organization costs and sales charges. The Net Asset Value (NAV) represents the value per unit of a trust’s portfolio securities and other assets reduced by applicable deferred sales charges and other liabilities.

 Estimated Net Annual Distribution Per Unit
Estimated Net Annual Distribution Per Unit * $0.7540
As of 07/17/2017
* The estimates are based on annualizing the most recent dividends declared by the issuers of the securities included in the portfolio. There is no guarantee that the issuers of the securities included in the portfolio will declare distributions in the future or that, if declared, they will either remain at current levels or increase over time.

 Holdings  Export Current Holdings | View Initial Holdings  
NameSymbolWeighting
 Voya International High Dividend Equity Income Fund IID 2.76%
 Nuveen Core Equity Alpha Fund JCE 2.68%
 Lazard Global Total Return and Income Fund, Inc. LGI 2.66%
 Nuveen Tax-Advantaged Total Return Strategy Fund JTA 2.65%
 Eaton Vance Tax-Managed Global Diversified Equity Income Fund EXG 2.65%
 MFS Intermediate High Income Fund CIF 2.62%
 Royce Micro-Cap Trust, Inc. RMT 2.61%
 Liberty All-Star Equity Fund USA 2.59%
 Morgan Stanley Emerging Markets Domestic Debt Fund, Inc. EDD 2.58%
 BlackRock Enhanced Capital and Income Fund, Inc. CII 2.56%
 Eaton Vance Tax-Managed Diversified Equity Income Fund ETY 2.56%
 Eaton Vance Tax-Advantaged Dividend Income Fund EVT 2.54%
 Western Asset Investment Grade Defined Opportunity Trust Inc. IGI 2.54%
 The Gabelli Equity Trust Inc. GAB 2.53%
 Aberdeen Global Income Fund, Inc. FCO 2.52%
 Credit Suisse High Yield Bond Fund DHY 2.51%
 Aberdeen Asia-Pacific Income Fund, Inc. FAX 2.51%
 Western Asset Premier Bond Fund WEA 2.51%
 Dreyfus High Yield Strategies Fund DHF 2.50%
 Ares Dynamic Credit Allocation Fund, Inc. ARDC 2.49%
 DoubleLine Income Solutions Fund DSL 2.49%
 Advent/Claymore Enhanced Growth & Income Fund LCM 2.48%
 Wells Fargo Income Opportunities Fund EAD 2.46%
 Barings Global Short Duration High Yield Fund BGH 2.46%
 Ivy High Income Opportunities Fund IVH 2.46%
 BlackRock Core Bond Trust BHK 2.45%
 Pioneer Diversified High Income Trust HNW 2.45%
 Templeton Emerging Markets Income Fund TEI 2.44%
 Aberdeen Australia Equity Fund, Inc. IAF 2.44%
 Stone Harbor Emerging Markets Income Fund EDF 2.44%
 Nuveen Floating Rate Income Opportunity Fund JRO 2.43%
 Stone Harbor Emerging Markets Total Income Fund EDI 2.42%
 Voya Prime Rate Trust PPR 2.40%
 Western Asset Corporate Loan Fund Inc. TLI 2.39%
 Blackstone/GSO Senior Floating Rate Term Fund BSL 2.39%
 Nuveen Credit Strategies Income Fund JQC 2.37%
 Invesco Dynamic Credit Opportunities Fund VTA 2.37%
 Invesco Senior Income Trust VVR 2.35%
 Pioneer Floating Rate Trust PHD 2.33%
 Fiduciary/Claymore MLP Opportunity Fund FMO 2.23%
 
Total Number of Holdings:    40
Underlying Securities information represented above is as of 07/19/2017 but will vary with future fluctuations in the market.

 Deferred Sales Charge Schedule
Amount Date
$0.04830 July 20, 2017
$0.04830 August 18, 2017
$0.04840 September 20, 2017

Risk Considerations

Equity Risk. An investment in a portfolio containing common stocks is subject to certain risks, 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.

Closed-End Fund Risk. Closed-end funds are subject to various risks, including management's ability to meet the fund's investment objective, and to manage the fund's portfolio when the underlying securities are redeemed or sold, during periods of market turmoil and as investors' perceptions regarding the funds or their underlying investments change. Unlike open-end funds, which trade at prices based on a current determination of the fund's net asset value, closed-end funds frequently trade at a discount to their net asset value in the secondary market. Certain closed-end funds may employ the use of leverage, which increases the volatility of such funds.

Emerging Markets Risk. Risks associated with investing in foreign securities may be more pronounced in emerging markets where the securities markets are substantially smaller, less liquid, less regulated and more volatile than the U.S. and developed foreign markets.

Floating Rate Risk. Certain of the funds invest in floating-rate securities. A floating-rate security is an instrument in which the interest rate payable on the obligation fluctuates on a periodic basis based upon changes in an interest rate benchmark. As a result, the yield on such a security will generally decline in a falling interest rate environment, causing the trust to experience a reduction in the income it receives from such securities.

Foreign Securities Risk. An investment in securities of foreign issuers should be made with an understanding of the additional risks involved, such as currency fluctuations, political risk, withholding, the lack of adequate financial information, and exchange control restrictions impacting foreign issuers.

High-Yield or Junk Bonds Risk. Investing in high-yield securities or "junk" bonds should be viewed as speculative and you should review your ability to assume the risks associated with investments which utilize such securities. High-yield securities are subject to numerous risks, including higher interest rates, economic recession, deterioration of the junk bond market, possible downgrades and defaults of interest and/or principal. High-yield security prices tend to fluctuate more than higher rated securities and are affected by short-term credit developments to a greater degree.

Investment Grade Bonds Risk. Investment grade securities are subject to numerous risks including higher interest rates, economic recession, deterioration of the investment grade security market or investors' perception thereof, possible downgrades and defaults of interest and/or principal.

IRA Risk. There may be tax consequences unless units are purchased in an IRA or other qualified plan.

Options Risk. Options are subject to various risks including that their value may be adversely affected if the market for the option becomes less liquid or smaller. In addition, options will be affected by changes in the value and dividend rates of the stock subject to the option, an increase in interest rates, a change in the actual and perceived volatility of the stock market and the common stock and the remaining time to expiration.

Senior Loans Risk. The yield on senior loans will generally decline in a falling interest rate environment and increase in a rising interest rate environment. Senior loans are generally below investment grade quality ("junk" bonds). An investment in senior loans involves the risk that the borrowers may default on their obligations to pay principal or interest when due.

Volatility Risk. 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.

Additional Risk. For a discussion of additional risks of investing in the trust see the "Risk Factors" section of the prospectus.

Important Note. It is important to note that an investment can be made in the underlying funds directly rather than through the trust. These direct investments can be made without paying the trust's sales charge, operating expenses and organizational costs.

Although the portfolio terminates in approximately one year, the strategy is long-term. Investors should consider their ability to pursue investing in successive portfolios, if available. There may be tax consequences unless units are purchased in an IRA or other qualified plan.

You should carefully consider the trust's investment objectives, risks, and charges and expenses before investing. Contact your financial advisor or call First Trust Portfolios, L.P. at 1.800.621.1675 to request a prospectus, which contains this and other information about the trust. Read it carefully before you invest.

This product information does not constitute an offer to sell, or a solicitation of an offer to buy securities in any state to any person to whom it is not lawful to make such an offer. Sales of any of these securities must include prospectus delivery and the services of a retail broker/dealer duly licensed in the appropriate states.

Not FDIC Insured, Not Bank Guaranteed and May Lose Value.

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The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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