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Global Gorillas Portfolio, Series 7

What is a "Global Gorilla?"

In the investment world, a gorilla is defined as a company that dominates an industry without having a complete monopoly. These companies tend to have a large control of the pricing and availability of their products, relative to their competitors in the industry. They have leading franchises with widespread exposure to fast-growing overseas markets, strong operational capabilities and enough pricing power to offset rising margin pressures. These companies are well known blue-chip companies that are widely recognized as leaders in their respective industries..

The Global Gorillas Portfolio invests in companies that we believe have strong dividend growth and/or share buyback potential. As the interest rate environment in the United States, in particular, normalizes over the next several years, we believe it may be beneficial to own stocks with dividend growth or outsized buyback potential vs. high-yield stocks.

Gaining Exposure to Growing Emerging Markets

Emerging markets are countries that are attempting to change and improve their current economies. Size itself is not a factor for determining an emerging market, as evidenced by China. The objective of an emerging market is to raise economic performance and, as a result, become a more advanced nation. Collectively, developing economies are anticipated to grow faster than the economies of countries which are already developed. According to the International Monetary Fund, GDP growth for emerging economies is estimated to be 4.5% in 2017 and 4.8% in 2018 compared to 2.0% and 2.0% for advanced economies.

We believe that investing in Global Gorillas, with a strong emerging markets presence and a developed market domicile, is a prudent approach to gain exposure to growth in emerging markets.

Portfolio Selection

Many of the companies selected for the portfolio are headquartered in the United States, but earn a substantial portion of their profits from overseas, while some are headquartered overseas but have businesses with a similar global scale and scope. We select the stocks in the portfolio by utilizing measures such as cash flow analysis, balance sheet strength, dividend yield and valuation support.

Portfolio Objective

This unit investment trust seeks above-average capital appreciation; however, there is no assurance the objective will be met.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value

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.

You should be aware that the portfolio is concentrated in stocks in the consumer products sector which involves additional risks, including limited diversification. The companies engaged in the consumer products industry are subject to global competition, changing government regulations and trade policies, currency fluctuations, and the financial and political risks inherent in producing products for foreign markets.

An investment in a portfolio containing equity securities of foreign issuers is subject to additional risks, including currency fluctuations, political risks, 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 liquid, less regulated and more volatile than the U.S. and developed foreign markets.

This UIT is a buy and hold strategy and investors should consider their ability to hold the trust until maturity. There may be tax consequences unless units are purchased in an IRA or other qualified plan.

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.

 
The information in the prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. The prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
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