Alternative Income, 26  Ticker: FGNLEX
A unit investment trust that seeks to provide current monthly income, with capital appreciation as a secondary objective. The trust offers a disciplined and transparent solution for income investors by providing exposure to a diversified mix of asset classes in a single investment portfolio.
Product Code: ALIN26
Portfolio Status: Primary
Initial Offer Date: 12/21/2017
Portfolio Ending Date: 12/20/2019
Tax Structure: Regulated Investment Company
Distributions: Monthly
Initial Offer Price: $10.0000
NAV(*): $9.3095
POP(*): $9.5213
Remaining Deferred Sales Charge: $0.2250
* As of Trade Date: 03/16/2018 4:00pm ET
The Public Offering Price (POP) represents the net asset value per unit plus any applicable organization costs and sales charges. The Net Asset Value (NAV) represents the value per unit of a trust’s portfolio securities and other assets reduced by applicable deferred sales charges and other liabilities.

 Estimated Net Annual Distribution Per Unit
Year 1 * $0.6349
Subsequent Years * $0.6324
As of 03/12/2018
* The estimated net annual distribution for subsequent years is expected to be less than the amount for the first year because a portion of the securities included in the portfolio will be sold to pay for organization costs, the deferred sales charge and the creation and development fee.  The estimates are based on annualizing the most recent dividends declared by the issuers of the securities included in the portfolio. There is no guarantee that the issuers of the securities included in the portfolio will declare distributions in the future or that, if declared, they will either remain at current levels or increase over time.

 Holdings  Export Current Holdings | View Initial Holdings  
 Solar Capital Ltd. SLRC 2.66%
 Ares Capital Corporation ARCC 2.54%
 Apollo Investment Corporation AINV 2.45%
 Prospect Capital Corporation PSEC 2.44%
 PennantPark Floating Rate Capital Ltd. PFLT 2.42%
 Hercules Capital, Inc. HTGC 2.41%
 Main Street Capital Corporation MAIN 2.41%
 TCP Capital Corp. TCPC 2.34%
 Tortoise MLP Fund, Inc. NTG 2.14%
 Prologis, Inc. PLD 2.09%
 KKR Income Opportunities Fund KIO 2.09%
 The Gabelli Equity Trust Inc. GAB 2.08%
 Kayne Anderson MLP Investment Company KYN 2.08%
 Kayne Anderson Energy Development Company KED 2.08%
 Templeton Global Income Fund GIM 2.04%
 Guggenheim Credit Allocation Fund GGM 2.04%
 Fiduciary/Claymore MLP Opportunity Fund FMO 2.03%
 John Hancock Tax-Advantaged Global Shareholder Yield Fund HTY 2.03%
 Cohen & Steers Limited Duration Preferred and Income Fund, Inc. LDP 2.03%
 Prudential Global Short Duration High Yield Fund, Inc. GHY 2.02%
 Goldman Sachs MLP Income Opportunities Fund GMZ 2.01%
 Simon Property Group, Inc. SPG 2.00%
 Eaton Vance Risk-Managed Diversified Equity Income Fund ETJ 2.00%
 ClearBridge Energy MLP Opportunity Fund Inc. EMO 2.00%
 Cohen & Steers MLP Income and Energy Opportunity Fund, Inc. MIE 2.00%
 Nuveen Energy MLP Total Return Fund JMF 1.99%
 Host Hotels & Resorts, Inc. HST 1.98%
 John Hancock Income Securities Trust JHS 1.96%
 ClearBridge Energy MLP Total Return Fund Inc. CTR 1.94%
 Center Coast Brookfield MLP & Energy Infrastructure Fund CEN 1.94%
 CyrusOne Inc. CONE 1.92%
 Xenia Hotels & Resorts, Inc. XHR 1.90%
 Mid-America Apartment Communities, Inc. MAA 1.89%
 National Health Investors, Inc. NHI 1.88%
 EPR Properties EPR 1.86%
 Virtus Total Return Fund Inc. ZF 1.82%
 Highwoods Properties, Inc. HIW 1.81%
 Physicians Realty Trust DOC 1.76%
 Gentex Corporation GNTX 1.17%
 Amgen Inc. AMGN 1.14%
 Best Buy Co., Inc. BBY 1.10%
 KLA-Tencor Corporation KLAC 1.09%
 Union Pacific Corporation UNP 1.08%
 Eaton Corporation Plc ETN 1.08%
 International Business Machines Corporation IBM 1.07%
 Texas Instruments Incorporated TXN 1.06%
 Royal Caribbean Cruises Ltd. RCL 1.06%
 United Technologies Corporation UTX 1.01%
 Honeywell International Inc. HON 1.01%
 Hasbro, Inc. HAS 1.01%
 Packaging Corporation of America PKG 1.00%
 Cummins Inc. CMI 0.98%
 The Home Depot, Inc. HD 0.97%
 Whirlpool Corporation WHR 0.97%
 Corning Incorporated GLW 0.95%
 Ameriprise Financial, Inc. AMP 0.95%
 Altria Group, Inc. MO 0.92%
 Principal Financial Group, Inc. PFG 0.90%
Total Number of Holdings:    58
Underlying Securities information represented above is as of 03/16/2018 but will vary with future fluctuations in the market.

 Standard Account Sales Charges *
Transactional sales charges: Initial:  -0.14%
  Deferred:  2.36%
C&D Fee:    0.53%
Maximum Sales Charge:   2.75%
CUSIP Type Distribution
30306D547 Cash Monthly
30306D554 Reinvest Monthly
* Based on the offer price as of 03/16/2018 4:00pm ET

 Fee/Wrap Account Sales Charges *
C&D Fee:    0.54%
Maximum Sales Charge:   0.54%
CUSIP Type Distribution
30306D562 Cash-Fee Monthly
30306D570 Reinvest-Fee Monthly
* Based on the NAV price as of 03/16/2018 4:00pm ET
In addition to the sales charges listed, UITs are subject to annual operating expenses and organization costs.

 Deferred Sales Charge Schedule
Amount Date
$0.07500 April 20, 2018
$0.07500 May 18, 2018
$0.07500 June 20, 2018

Risk Considerations

Equity Risk. An investment in a portfolio containing common stocks is 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.

Business Development Company Risk. Certain of the securities in the portfolio are issued by closed-end investment companies which have been elected to be treated as Business Development Companies (BDC). An investment in BDCs is subject to various risks, including management's ability to meet the BDC's investment objective, and to manage the BDC's portfolio during periods of market turmoil. BDCs may trade in the market at a discount to their net asset value. BDCs may employ the use of leverage which subjects the BDC to increased risks.

Buy & Hold Risk – Taxable Trusts. 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.

Closed-End Fund Risk. Closed-end funds 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 the funds 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, closed-end funds frequently trade at a discount to their net asset value in the secondary market. Certain closed-end funds may employ the use of leverage, which increases the volatility of such funds.

Floating Rate Risk. Certain of the funds invest in floating-rate securities. A floating-rate security is an instrument in which the interest rate payable on the obligation fluctuates on a periodic basis based upon changes in an interest rate benchmark. As a result, 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.

Foreign Securities Risk. An investment in securities of foreign issuers should be made with an understanding of the additional risks involved, such as currency fluctuations, political risk, withholding, the lack of adequate financial information, and exchange control restrictions impacting foreign issuers.

High-Yield or Junk Bonds Risk. Investing in high-yield securities or "junk" bonds 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.

Limited Duration Bonds Risk. 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 rise during the life of the trust.

MLP Risk. Investments in Master Limited Partnerships (MLPs) are subject to the risks generally applicable to companies in the energy and natural resources sectors, including commodity pricing risk, supply and demand risk, depletion risk and exploration risk. There are certain tax risks associated with MLPs, including the risk that U.S. taxing authorities could challenge the trust's treatment of the MLPs for federal income tax purposes. These tax risks could have a negative impact on the after-tax income available for distribution by the MLPs and/or the value of the trust's investments.

REITs Risk. An investment in a portfolio containing REIT securities is subject to additional risks including limited diversification. Companies involved in the real estate industry are subject to changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession.

Senior Loans Risk. The yield on 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.

Small-Cap and Mid-Cap Risk. 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.

Volatility Risk. 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.

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

Important Note. 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.

You should carefully consider the trust's investment objectives, risks, and charges and expenses 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 trust. Read it carefully before you invest.

This product information does not constitute an offer to sell, or a solicitation of an offer to buy securities in any state to any person to whom it is not lawful to make such an offer. Sales of any of these securities must include prospectus delivery and the services of a retail broker/dealer duly licensed in the appropriate states.

Not FDIC Insured, Not Bank Guaranteed and May Lose Value.