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FT High Income Model Portfolio, 2nd Qtr 2019
Ticker Symbol: FLPORX

7 Holdings (As of Day of Deposit)
Ticker Name Initial
Weight
Price*
U.S. SHORT MATURITY
FTSM First Trust Enhanced Short Maturity ETF 7.50% $60.09
U.S. MORTGAGE-BACKED
LMBS First Trust Low Duration Opportunities ETF 24.49% 51.29
U.S. CORPORATE – HIGH YIELD
FTSL First Trust Senior Loan Fund 18.00% 47.14
HYLS First Trust Tactical High Yield ETF 22.51% 47.74
U.S. OPPORTUNISTIC CORE
FIXD First Trust TCW Opportunistic Fixed Income ETF 10.00% 50.64
INTERNATIONAL – EMERGING MARKETS
FEMB First Trust Emerging Markets Local Currency Bond ETF 7.50% 37.83
HYBRID FIXED INCOME
FPE First Trust Preferred Securities and Income ETF 10.00% 18.99

* As of the close of business on 3/28/19.
Market values are for reference only and are not indicative of your individual cost basis.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value

Portfolio Summary
Initial Date of Deposit 3/29/2019
Initial Public Offering Price $10.00 per Unit
Portfolio Ending Date 6/30/2020
Historical 12-Month Distribution Rate of Trust Holdings:* 3.78%
Cash CUSIP 302652102
Reinvestment CUSIP 302652110
Fee Accounts Cash CUSIP 302652128
Fee Accounts Reinvestment CUSIP 302652136

*There is no guarantee the issuers of the securities included in the trust will declare dividends or distributions in the future. The historical distribution rate of the securities included in the trust is for illustrative purposes only and is not indicative of the trust’s distribution rate. The historical distribution rate is calculated by dividing the weighted average of the trailing twelve month distributions paid by the securities included in the portfolio by the trust’s offering price and is reduced to account for the effects of fees and expenses which will be incurred when investing in a trust. Distributions may include realized short term capital gains, realized long-term capital gains and/or return of capital. Certain of the issuers may have reduced their dividends or distributions over the prior twelve months. The distribution rate paid by the trust may be higher or lower than the amount shown above due to certain factors that may include, but are not limited to, a change in the dividends or distributions paid by issuers, actual expenses incurred, or the sale of securities in the portfolio.


Trust Specifics (As Of The Close Of Business On 3/28/19)
Weighted Average Maturity:1 3.03 years
Weighted Average Effective Duration:2 2.66 years
 
1Weighted average maturity represents the average amount of time remaining until the bonds held in the underlying ETFs mature, taking into account each bond’s weight within the ETFs based on its market value. This figure is based on approximately 67.5% of the portfolio as certain funds have either not provided maturity data or don’t invest in bonds.
2Weighted average effective duration is a measure of a portfolio’s sensitivity to interest rate changes that reflects the change in its price given a change in yield. It accounts for the likelihood of changes in the timing of cash flows in response to interest rate movements. The net weighted average effective duration, which includes short positions, is used for LMBS and HYLS.
Credit Quality3 Weighted Average   Credit Quality3 Weighted Average
Government 25.56%   CCC 2.28%
Cash 1.64%   CC 0.03%
AAA 3.94%   D 0.12%
AA 1.52%   A-1+ (short-term) 0.05%
A 3.97%   A-1 (short-term) 0.11%
BBB 13.09%   A-2 (short-term) 2.13%
BB 18.87%   A-3 (short-term) 0.70%
B 24.52%   NR 1.47%
3As of the Initial Date of Deposit. Credit ratings are weighted averages of the funds’ underlying holdings. The modifiers “+” or “-” are not included for purposes of the credit rating distribution. A credit rating is an assessment provided by an nationally recognized statistical rating organization (NRSRO), including Standard & Poor’s Rating Group, of the creditworthiness of an issuer with respect to its debt obligations. Ratings are measured highest to lowest on a scale that generally ranges from AAA to D for long-term ratings and A-1+ to C for short-term ratings. Investment grade is defined as those issuers that have a long-term credit rating of BBB- or higher or a shortterm credit rating of A-3 or higher. “NR” indicates no rating. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the funds, and not to the funds or their shares. U.S. Treasury, U.S. Agency and U.S. Agency mortgage-backed securities appear under Government. Credit ratings are subject to change.

Sales Charges (based on a $10 public offering price)
Standard Accounts
Transactional Sales Charges: Initial: 0.00%
  Deferred: 1.40%
Creation & Development Fee:   0.10%
Maximum Sales Charge:   1.50%

The deferred sales charge will be deducted in three monthly installments commencing 7/19/19.

When the public offering price is less than or equal to $10.00 per unit, there will be no initial sales charge. If the price exceeds $10.00 per unit, you will pay an initial sales charge.

Fee/Wrap Accounts
Maximum Sales Charge: 0.10%

The maximum sales charge for investors in fee accounts consists of the creation and development fee. Investors in fee accounts are not assessed any transactional sales charges. Standard accounts sales charges apply to units purchased as an ineligible asset.

The creation and development fee is a charge of $.050 per unit collected at the end of the initial offering period. If the price you pay exceeds $10 per unit, the creation and development fee will be less than 0.50%; if the price you pay is less than $10 per unit, the creation and development fee will exceed 0.50%.

In addition to the sales charges listed, UITs are subject to annual operating expenses and organization costs.

You should consider the portfolio's investment objective, 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 ETFs and fixed income securities.

ETFs 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 ETFs 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, ETFs frequently trade at a discount from their net asset value in the secondary market. Certain of the ETFs may employ the use of leverage, which increases the volatility of such funds.

All of the ETFs invest in investment grade securities. Investment grade securities are subject to numerous risks including higher interest rates, economic recession, deterioration of the investment grade market or investors’ perception thereof, possible downgrades and defaults of interest and/or principal.

Certain of the ETFs invest in senior loans. The yield on ETFs which invest in 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.

Certain of the ETFs invest in high-yield securities or “junk” bonds. Investing in high-yield securities 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.

Certain of the ETFs invest in floating-rate securities. 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.

Certain of the ETFs invest in limited duration bonds. Limited duration bonds are subject to interest rate risk, which is the risk that the value of a security will fall if interest rates increase. While limited duration bonds are generally subject to less interest rate sensitivity than longer duration bonds, there can be no assurance that interest rates will not rise during the life of the trust.

Certain of the ETFs invest in securities of foreign issuers which are 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 developed, less liquid, less regulated, and more volatile than the U.S. and developed foreign markets.

Certain of the ETFs invest in common stocks. Common stocks are 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.

Certain of the ETFs invest in money market or similar securities as a defensive measure when the fund’s investment advisor anticipates unusual market or other conditions. If market conditions improve while a fund has invested in these securities, the potential gain from the market upswing may be reduced, limiting the fund’s opportunity to achieve its investment objective.

Certain of the ETFs invest in mortgage-backed securities. Rising interest rates tend to extend the duration of mortgage-backed securities, making them more sensitive to changes in interest rates, and may reduce the market value of the securities. In addition, mortgage-backed securities are subject to prepayment risk, the risk that borrowers may pay off their mortgages sooner than expected, particularly when interest rates decline.

Certain of the ETFs invest in U.S. Treasury obligations which are subject to numerous risks including higher interest rates, economic recession and deterioration of the bond market or investors’ perceptions thereof.

One of the ETFs invest in preferred securities. Preferred securities are equity securities of the issuing company which pay income in the form of dividends. Preferred securities are typically subordinated to bonds and other debt instruments in a company’s capital structure, and therefore will be subject to greater credit risk than those debt instruments.

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 this portfolio terminates in approximately 15 months, 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.

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 cyber security.

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.

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

 
Fund Cusip Information
302652102 (Cash)
302652110 (Reinvest)
302652128 (Cash-Fee)
302652136 (Reinvest-Fee)
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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, the Internal Revenue Code or any other regulatory framework. Financial advisors are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
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