Global Hard Assets Portfolio, Series 14

What's a hard asset? Well, it doesn't have to be literally hard, but it is tangible. Whether it's a gold bar, a ton of coal, or a barrel of oil, a hard asset is a physical commodity whose value is intrinsic based on what it is or what can be done with it. Its opposite is a financial or intangible asset such as currency or a mortgage, pieces of paper whose value is derived from a promise made by a government or corporation.

The global hard assets sector is made up of several separate markets including precious metals and mining, energy and forest products. The companies in this portfolio are directly responsible for mining, extracting or cultivating the underlying hard assets.We believe these assets are the building blocks of world economic growth. Developing countries must produce or acquire these commodities to build solid economic foundations.

• The portfolio consists of stocks of companies that control the actual extraction, mining or cultivation of the hard asset.The companies are chosen to gain exposure to different sectors of the commodities market and to different producing regions around the globe.
• Typically, these companies' stock prices correlate highly with the market prices of the commodities they produce.
• Demand for these commodities generally rises and falls in concert with:
• Fluctuations in economic activity,
• Fluctuations in the rate of inflation, and
• Fluctuations in the value of currencies.

Portfolio Benefits

An investment in companies involved in the extraction, mining or cultivation of hard assets can provide an important source of diversification in a properly diversified portfolio. The portfolio also offers:

• Participation in the growth of the global economy.
• Exposure to potential increases in the value of rare commodities which are essential to modern industry.
• Capital appreciation potential of individual companies that are experts at increasing production of the subject commodities.

Global Outlook

The chart below shows the annualized global GDP growth from 2000 to 2011 with estimates for 2012, 2013 and 2014. Annual world GDP growth is estimated to be 3.5% in 2013 and 4.1% in 2014, driven by emerging economies which are projected to grow 5.5% in 2013 and 5.9% in 2014.

Portfolio Consultant

The securities included in the trust are selected by Confluence Investment Management LLC using a comprehensive evaluation process. This process draws upon their extensive experience of investing, on behalf of their clients, in a wide range of investments during various market cycles in their attempt to provide attractive risk-adjusted returns to their clients.

You should consider the portfolio's investment objectives, risks, and charges and expenses carefully 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 portfolio. Read it carefully before you invest.

Risk Considerations:
An investment in this unmanaged unit investment trust should be made with an understanding of the risks involved with owning common stocks, 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.

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.

One of the securities in the portfolio is issued by a REITs Companies involved in the real estate industry are subject to changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession.

An investment in a portfolio containing small-cap companies is subject to additional risks, as the share prices of small-cap companies are often more volatile than those of larger companies due to several factors, including limited trading volumes, products, financial resources, management inexperience and less publicly available information.

Because the portfolio is concentrated in securities issued by companies headquartered in Canada, the portfolio may present more risks than a portfolio which is broadly diversified over several regions.

You should be aware that the portfolio is concentrated in stocks in the energy, materials and commodities sectors making it subject to additional risks, including limited diversification. The companies engaged in the energy sector are subject to price and supply fluctuations caused by international politics, energy conservation, taxes, price controls, and other regulatory policies of various governments. The companies engaged in the materials sector are subject to price and supply fluctuations, excess capacity, economic recession, domestic and international politics, government regulations, volatile interest rates, consumer spending trends and overall capital spending levels. Commodity prices are subject to several factors, including price and supply fluctuations, excess capacity, economic recession, domestic and international politics, government regulations, volatile interest rates, consumer spending trends and overall capital spending levels.

An investment in foreign equities should be made with an understanding of the additional risks involved with foreign issuers, such as currency fluctuations, political risk, withholding, the lack of adequate financial information, and exchange control restrictions impacting foreign issuers. Risks associated with investing in foreign securities may be more pronounced in emerging markets where the securities markets are substantially smaller, less developed, less liquid, less regulated, and more volatile than the U.S. and developed foreign markets.