ABOUT THE FUND
The First Trust Target Date Fund is a collective investment fund that invests according to a strategy determined by First Trust Advisors L.P., which serves
as the Fund's Sub-Advisor. This Fund was created by Hand Composite Employee Benefit Trust and is sponsored by Hand Benefits & Trust Company, a BPAS Company.
Plan sponsors and participants should consider the Fund's investment objective, time horizon, risks, charges and expenses carefully before investing. Contact
your financial professional or call First Trust Portfolios L.P. at 877.937.4015 to request an Information Statement, which contains this and other information about
the Fund. Read it carefully before you invest.
The First Trust Collective Investment Funds are not mutual funds and their units are not deposits of the Trustee, Hand Benefits & Trust Company, or the Sub-Advisor,
and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other agency. The units are securities which have not been registered under the
Securities Act of 1933 and the Fund is exempted from investment company registration under the Investment Company Act of 1940. Therefore, participating plans and their
participants will not be entitled to the protections under these Acts. Management of the Trust, however, is generally subject to the fiduciary duty and prohibited
transaction rules under the Employee Retirement Income Security Act of 1974 (ERISA).
As with any investment, you can lose money by investing in a Fund. The mix of assets in a Fund is intended to diminish the risk of loss, but sometimes stocks, bonds,
and other assets in a Fund's portfolio may lose value simultaneously. While the Funds are managed to reduce equity market exposure and, therefore, equity market risk
over time, investment in a Fund is exposed to market risk and other certain risks. For more information regarding the following risks, please consult the Fund's
The Fund is subject to market risk which is the risk that a particular security owned by the Fund or shares of the Fund in general may fall in value. The outbreak of
the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses
for investors. The COVID-19 pandemic may last for an extended period of time, and will continue to impact the economy for the foreseeable future.
An investment in a fund containing securities of non-U.S. issuers is 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. These risks may be heightened for securities of companies
located in, or with significant operations in, emerging market countries.
Changes in currency exchange rates and the relative value of non-U.S. currencies may affect the value of the Fund's investments and the value of the Fund's shares.
The Fund invests in small and/or mid-capitalization companies. Such companies may experience greater price volatility than larger, more established companies.
Certain securities held by the Fund are subject to credit risk, income risk, interest rate risk and prepayment risk. Credit risk is the risk that an issuer may
default on its obligation to make principal and/or interest payments when due. Credit risk is heightened for senior loan securities. Income risk is the risk that
income from the Fund's fixed income investments could decline during periods of falling interest rates. Interest rate risk is the risk that the value of debt
securities will decline because of rising interest rates. Prepayment risk is the risk that, during periods of falling interest rates, an issuer may exercise its
right to pay principal on an obligation earlier than expected. This may result in a decline in a fund's income. Each of these risks may have an adverse effect on
the Fund's total return.
Companies that issue loans tend to be highly leveraged and thus are more susceptible to the risk of interest deferral, default and/or bankruptcy. Senior floating
rate loans, in which the Fund may invest, are usually rated below investment grade but may also be unrated. As a result, the risks associated with these senior
floating rate loans are similar to the risks of high-yield fixed income instruments.
High-yield securities or "junk" bonds are subject to greater market fluctuations and risk of loss than securities with higher ratings, and therefore, are considered
to be highly speculative. These securities are issued by companies that may have limited operating history, narrowly focused operations, and/or other impediments to
the timely payment of periodic interest and principal at maturity. The market for high-yield securities is smaller and less liquid than that for investment-grade securities.
The Fund may invest in securities of other investment companies, including ETFs or other PIVs which involves additional expenses that would not be present in a direct
investment in the underlying funds. In addition, a fund's investment performance and risks may be related to the investment performance and risks of the underlying funds.
The Fund may invest in Treasury Inflation-Protected Securities (TIPS), which are securities issued by the U.S. Government but differ from nominal rate Treasury securities
in certain respects. TIPS are issued at fixed coupon rates lower than those of nominal rate Treasury securities, but the principal amount of TIPS fluctuates daily based
on a pro-rata portion of the change in the Consumer Price Index as reported three months earlier. Coupon payments are made based on the adjusted principal value of the TIPS.
In a falling inflationary environment, both the coupon payments and the value of TIPS will decline. Foreign governments may issue securities with features similar to TIPS.
The value of commodities and commodity-linked instruments typically is based upon the price movements of a physical commodity or an economic variable linked to such price
movements. The prices of commodities and commodities-linked instruments may fluctuate quickly and dramatically and may not correlate to price movements in other asset classes.
Each of these factors and events could have a significant negative impact on the Fund.
Real estate investment trusts and other real estate related companies are subject to certain risks, including changes in the real estate market, vacancy rates and competition,
volatile interest rates and economic recession.
Not FDIC Insured Not Bank Guaranteed May Lose Value