AI, Robotics & Technology Opportunity Portfolio, Series 12
Fueled by advances in computer and sensor technology, robots and artificial intelligence (AI) are
becoming an integral part of our daily lives as providers of labor, mobility, safety, convenience and
entertainment. What was once largely limited to manufacturing plants, robots are now found in
households, offices, hospitals, farms and highways.
Artificial Intelligence - is the theory and development of computer systems able to
perform tasks that normally require human intelligence, such as visual perception, speech
recognition, decision making and translation between languages.
Robotics - is the branch of technology that deals with the design, construction, operation
and application of robots.
Consider The Following:
- Worldwide spending on robotics and related services is anticipated to reach approximately
$112.4 billion in 2020. Services spending on robotics is expected to grow at a rate of 21.3%
per year for the next five years.1
- Worldwide spending on AI systems was anticipated to reach $37.5 billion in 2019. By 2023, that
number is estimated to reach nearly $98 billion with a compound annual growth rate of 28.4%
over the 2018-2023 forecast period.2
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 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.
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 both the industrials and information
technology sectors which involves additional risks, including limited diversification. The companies engaged
in the industrials sector are subject to certain risks, including a deterioration in the general state of the
economy, intense competition, domestic and international politics, excess capacity and changing spending
trends. The companies engaged in the information technology sector are subject to fierce competition, high
research and development costs, and their products and services may be subject to rapid obsolescence.
Technology company stocks, especially those which are Internet-related, may experience extreme price and
volume fluctuations that are often unrelated to their operating performance. There is no assurance that the
projections stated herein will be realized.
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.
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.
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.
The recent outbreak of a respiratory disease designated as COVID-19 was first detected in China in December 2019. The global economic impact of the COVID-19 outbreak is impossible to predict but is expected to disrupt manufacturing, supply chains and sales in affected areas and negatively impact global economic growth prospects. The COVID-19 outbreak has also caused significant volatility and declines in global financial markets, which have caused losses for investors. The impact of the COVID-19 outbreak may be short term or may last for an extended period of time, and in either case could result in a substantial economic downturn or recession.
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.
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.