Income Dividend Equity Allocation (IDEA) Portfolio, Series 41

The Income Dividend Equity Allocation (IDEA) Portfolio is a unit investment trust which focuses on companies that have paid or increased their dividends over the last ten years and have market capitalizations that are greater than $1 billion.

The starting universe of securities which are eligible for inclusion in the portfolio are selected based on a proprietary rules-based model. The final portfolio is selected from this universe by a value-oriented portfolio management team from Confluence Investment Management LLC (“Confluence”).

The companies selected for the portfolio have a tendency to be:

• Established companies that can generate free cash flow;
  
  
• Companies that have management teams committed to growing their dividends.
  
  

An investment approach which seeks growth in dividends is especially important since inflation can erode investment returns and lower purchasing power. In addition, because the portfolio has the potential to provide a dividend growth rate which is higher than inflation, real income to investors has the potential to grow over time.

Why Cash Matters

Companies with sizeable cash positions tend to be mature companies that dominate their industries. A company with a significant amount of cash on its balance sheet is attractive for many reasons. Cash enables companies to bypass the credit markets and provides the means to:

• Make strategic cash-financed mergers and acquisitions;


• Begin to pay dividends or increase dividend payments to boost returns;


• Repurchase undervalued shares;


• Reinvest cash to grow their business;


• Improve their debt rating, thus reducing their cost of capital; and


• Fund research and development projects, even in a down market.

Why Invest In Companies With A History Of Growing Dividends?

Quality | Companies that have been able to consistently grow their dividend may have a tendency to be high quality compared to those of the broader market in terms of earnings quality and leverage. A company’s ability to reliably increase its dividend for years, or even decades, can be an indication of its financial strength or discipline.

Buffer Against Market Volatility | Dividend growth companies may be attractive to investors looking for disciplined companies that can endure difficult market and economic environments. These companies typically feature healthy balance sheets and consistent cash flows that provide plenty of capital to effectively operate their business and fund a growing dividend.

Portfolio Consultant

The securities included in the trust are selected by Confluence 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.

Portfolio Objective

This unit investment trust seeks above-average total return through a combination of capital appreciation and dividend income; however, there is no assurance the objective will be met.

You should consider the portfolio's investment objective, risks, and charges and expenses carefully before investing. Contact your financial professional or call First Trust Portfolios, L.P. 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.

Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers.

An investment in a portfolio containing small-cap and mid-cap companies is subject to additional risks, as the share prices of small-cap companies and certain mid-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.

Large capitalization companies may grow at a slower rate than the overall market.

As the use of Internet technology has become more prevalent in the course of business, the trust has become more susceptible to potential operational risks through breaches in cybersecurity.

Ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Hamas and other militant groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, the Middle East and the United States. The hostilities and sanctions resulting from those hostilities could have a significant impact on certain investments as well as performance.

The ongoing effects of the COVID-19 global pandemic, or the potential impacts of any future public health crisis, may cause significant volatility and uncertainty in global financial markets. While vaccines have been developed, there is no guarantee that vaccines will be effective against future variants of the disease.

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.

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.