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Alternative Income, 40  Ticker: FYHUJX
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.
Please note that there is no assurance the objective will be met.
Product Code: ALIN40
Portfolio Status: Secondary
Initial Offer Date: 05/10/2021
Secondary Date: 09/01/2021
Portfolio Ending Date: 05/10/2023
Tax Structure: Regulated Investment Company
Distributions: Monthly
Initial Offer Price: $10.0000
NAV(*): $9.6186
POP(*): $9.8400
Remaining Deferred Sales Charge: $0.0750
* As of Trade Date: 09/20/2021 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.

 Historical 12-Month Distribution of Trust Holdings:^
Rate (as of 9/20/2021) Per Unit (as of 9/20/2021)
5.02% $0.49370
^ There is no guarantee the issuers of the securities included in the trust will declare dividends or distributions in the future. The historical 12-month distribution per unit and historical 12-month distribution rate of the securities included in the trust are for illustrative purposes only and are not indicative of the trust's distribution or distribution rate. The historical 12-month distribution per unit is based on the weighted average of the trailing twelve month distributions paid by the securities included in the portfolio. The historical 12-month distribution rate is calculated by dividing the historical 12-month distributions by the trust's offering price. The historical 12-month distribution and rate are reduced to account for the effects of fees and expenses, which will be incurred when investing in a trust. Certain of the issuers may have reduced their dividends or distributions over the prior twelve months. The distribution per unit and 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. For trusts that include funds, distributions may include realized short term capital gains, realized long-term capital gains and/or return of capital.

 Holdings  Export Current Holdings | View Initial Holdings  
 The Cushing MLP & Infrastructure Total Return Fund SRV 2.76%
 Gladstone Investment Corporation GAIN 2.55%
 Gladstone Capital Corporation GLAD 2.55%
 Ares Capital Corporation ARCC 2.55%
 Kayne Anderson NextGen Energy & Infrastructure, Inc. KMF 2.53%
 Life Storage, Inc. LSI 2.50%
 Center Coast Brookfield MLP & Energy Infrastructure Fund CEN 2.47%
 PennantPark Floating Rate Capital Ltd. PFLT 2.46%
 Sixth Street Specialty Lending TSLX 2.46%
 Fidus Investment Corporation FDUS 2.44%
 Main Street Capital Corporation MAIN 2.43%
 ClearBridge MLP & Midstream Total Return Fund Inc. CTR 2.43%
 Tortoise Energy Infrastructure Corporation TYG 2.42%
 Kayne Anderson Energy Infrastructure Fund Inc. KYN 2.41%
 ClearBridge Energy Midstream Opportunity Fund Inc. EMO 2.38%
 Goldman Sachs MLP and Energy Renaissance Fund GER 2.37%
 Hercules Capital, Inc. HTGC 2.33%
 STAG Industrial, Inc. STAG 2.28%
 Invitation Homes Inc. INVH 2.28%
 American Tower Corporation AMT 2.26%
 MGM Growth Properties LLC (Class A) MGP 2.26%
 Simon Property Group, Inc. SPG 2.08%
 Nuveen Short Duration Credit Opportunities Fund JSD 2.07%
 KKR Income Opportunities Fund KIO 2.02%
 Franklin Limited Duration Income Trust FTF 2.00%
 Wells Fargo Global Dividend Opportunity Fund EOD 1.98%
 Gaming and Leisure Properties, Inc. GLPI 1.98%
 Highwoods Properties, Inc. HIW 1.97%
 Lazard Global Total Return and Income Fund, Inc. LGI 1.97%
 Delaware Ivy High Income Opportunities Fund IVH 1.97%
 Templeton Global Income Fund GIM 1.95%
 Nuveen Tax-Advantaged Total Return Strategy Fund JTA 1.94%
 Medical Properties Trust, Inc. MPW 1.87%
 Voya Asia Pacific High Dividend Equity Income Fund IAE 1.80%
 The Gabelli Equity Trust Inc. GAB 1.79%
 Omega Healthcare Investors, Inc. OHI 1.75%
 Eli Lilly and Company LLY 1.16%
 T. Rowe Price Group, Inc. TROW 1.14%
 Quest Diagnostics Incorporated DGX 1.11%
 Oracle Corporation ORCL 1.05%
 Advance Auto Parts, Inc. AAP 1.02%
 The Allstate Corporation ALL 1.01%
 First American Financial Corporation FAF 1.00%
 Northrop Grumman Corporation NOC 0.97%
 General Dynamics Corporation GD 0.97%
 Mondelez International, Inc. MDLZ 0.97%
 QUALCOMM Incorporated QCOM 0.96%
 BlackRock, Inc. BLK 0.96%
 Lockheed Martin Corporation LMT 0.94%
 Intel Corporation INTC 0.91%
 Steel Dynamics, Inc. STLD 0.90%
 Best Buy Co., Inc. BBY 0.89%
 The J.M. Smucker Company SJM 0.88%
 Cummins Inc. CMI 0.86%
 M.D.C. Holdings, Inc. MDC 0.79%
 Cigna Corporation CI 0.79%
Total Number of Holdings:    56
Underlying Securities information represented above is as of 09/20/2021 but will vary with future fluctuations in the market.

 Deferred Sales Charge Schedule
Amount Date
$0.07500 August 20, 2021
$0.07500 September 20, 2021
$0.07500 October 20, 2021

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 employ the use of leverage, which increases the volatility of such funds.

COVID-19 Economic Impact Risk. The COVID-19 global pandemic has caused significant volatility and declines in global financial markets, causing losses for investors. The development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, although many countries continue to impose lockdown measures. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

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.   

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.

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.

Operational Risk. 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.

You should carefully consider the trust's investment objectives, risks, and charges and expenses before investing. Contact your financial professional 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.

Fund Cusip Information
30319T141 (Cash)
30319T158 (Reinvest)
30319T166 (Cash-Fee)
30319T174 (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 professionals 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. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
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