Market Strength Allocation Opportunity Portfolio, Series 4

Determining which areas of the market provide the best investment opportunities can be a daunting task and sometimes economic climates break with tradition, making investment decisions even more arduous. These situations have historically offered opportunities for patient shareholders to increase their exposure in great companies.

Our goal with the Market Strength Allocation Opportunity Portfolio is to invest in undervalued companies with strong market positions that have the following qualities:

  • Strong balance sheets;
  • Skilled management;
  • Highly liquid;
  • Ability to generate earnings growth; and
  • Record of financial strength and profit growth.

Portfolio Objective

The objective of this unit investment trust is to provide investors the potential for above-average capital appreciation; however, there is no assurance the objective will be met. The portfolio terminates approximately two years from the initial date of deposit.

Portfolio Selection Process

This unit investment trust will invest in a diversified portfolio of common stocks of companies that exhibit financial strength from five distinct segments of the market. The five market segments will be weighted based on the adjacent allocation.


Chart

Through our selection process we seek to find the companies that we believe have the best prospects for above-average capital appreciation.

Identify the universe
The first step in our selection process is to identify each universe from which we will select the stocks for the five market segments. Each universe contains stocks selected specifically for each component of the allocation.

Screen for financial strength
The next step in our process is to evaluate companies based on multiple factors.These factors are designed to identify those stocks which exhibit strong fundamental characteristics and to eliminate those that do not meet our investment criteria.

Examine historical financial results
The next step in our process is to look for those companies that have earned a net cash flow return on investment that is above the average of their peers.Historically, companies that have increased their cash flows at a higher rate have rewarded shareholders with superior total returns.

Select companies with attractive valuations
The final step in our process is to select companies based on the fundamental analysis of our team of research analysts.The stocks selected for the portfolio are those that meet our investment objective, trade at attractive valuations and, in our opinion, are likely to exceed market expectations of future cash flows.

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.

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.

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.

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.

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.

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.