Fund Description: First Trust Morningstar Managed Futures Strategy Fund is an actively managed exchange-traded fund or Actively Managed ETF which is a separate investment portfolio of the First Trust Exchange-Traded Fund V, an open-end investment management company. INVESTMENT OBJECTIVE: The First Trust Morningstar Managed Futures Strategy Fund seeks to provide returns that exceed the performance of it's Benchmark the Morningstar Diversified Futures Index. The Fund is an actively managed fund, not an index tracking ETF, and is not required to invest in all of the components in the Index. However, the Fund will generally seek to hold similar instruments to those included in the Index and seek exposure to commodities, currencies and equity indexes included in the Index. INDEX DESCRIPTION: The Morningstar Diversified Futures Index contains 34 different futures positions consisting of: 19 commodities, 9 equity indexes and 6 currencies (Euro, Japanese Yen, British Pound, Canadian Dollar, Australian Dollar and Swiss Franc). The Index has the ability to go long, short or flat, providing greater flexibility and the potential to capture both upward and downward movements in price. The Subsidiary's exposure is generally weighted 50% in commodity futures, 25% in equity futures and 25% in currency futures. The base weights are typically rebalanced quarterly to maintain the 50%/25%/25% allocation. The Index is developed, maintained and sponsored by Morningstar, Inc. FUND STRATEGY: The Fund seeks to provide returns that exceed the performance of the Index by actively selecting investments for the fund with varying maturities from the components of the benchmark Index. The Fund will generally seek to hold similar instruments to those included in the Index but the actively managed structure allows the investment team flexibility to manage the contract selection and rolls to seek to exceed the performance of the Index. The Fund attempts to capture the economic benefit derived from rising and declining trends based on the moving average price changes of commodity futures, currency futures and equity index futures. Each of the investments will generally be positioned long, short or flat based on its price relative to its average price over a recent period, with the ability to change positions as frequently as daily if the Index is so adjusted. As a result, the Fund may frequently trade commodity futures contracts. The remainder of the Fund's assets will be invested in (1) short-term investment grade fixed income securities that include U.S. government and agency securities, sovereign debt obligations of non-U.S. countries and repurchase agreements, (2) money market instruments, (3) ETFs and other investment companies and (4) cash and other cash equivalents. FUND MANAGEMENT: First Trust Advisors L.P. serves as the Fund's investment advisor.