Fund Description: First Trust Preferred Securities and Income ETF is an actively managed exchange-traded fund or Actively Managed ETF which is a separate investment portfolio of the First Trust Exchange-Traded Fund III, an open-end investment management company. INVESTMENT OBJECTIVE: The First Trust Preferred Securities and Income ETF seeks total return and to provide current income. FUND STRATEGY: Under normal market conditions, the Fund invests at least 80% of its net assets (including investment borrowings) in preferred securities and income-producing debt securities. The Fund invests in securities that are traded over-the-counter or listed on an exchange. Preferred Securities held by the Fund generally pay fixed or adjustable-rate distributions to investors and have preference over common stock in the payment of distributions and the liquidation of a company's assets, but are generally junior to all forms of the company's debt, including both senior and subordinated debt. Certain of the Preferred Securities may be issued by trusts or other special purpose entities created by companies specifically for the purpose of issuing such securities (Trust Preferred Securities). Income Securities held by the Fund include corporate bonds, high yield securities, commonly referred to as junk bonds, and convertible securities. The broad category of corporate debt securities includes debt issued by U.S. and non-U.S. companies of all kinds, including those with small-, mid- and large-capitalizations. Corporate debt may carry fixed or floating rates of interest. The Fund may invest in U.S. and non-U.S. debt and equity securities. The non-U.S. equity securities listed on a foreign exchange in which the Fund may invest will be limited to securities that trade in markets that are members of the Intermarket Surveillance Group which includes all U.S. national securities exchanges and certain foreign exchanges, or are parties to a comprehensive surveillance sharing agreement with the Exchange. The anticipated average duration of the securities held by the Fund is three to 12 years. Because the issuers of Preferred Securities are often financial companies, the Fund concentrates its investments by investing at least 25% of its total assets in the group of industries that comprise the financial sector, which may include banks, thrifts, brokerage firms, broker/dealers, investment banks, finance companies, real estate investment trusts (REITs) and companies involved in the insurance industry. The Fund invests at least 60% of its net assets in securities rated investment grade (BBB-/Baa3 or higher) at the time of purchase by at least one independent rating agency. The Fund may invest up to 40% of its net assets in securities rated below investment grade (BB+/Ba1 or lower) at the time of purchase. FUND MANAGEMENT: First Trust Advisors L.P. serves as investment advisor to the Fund. Stonebridge Advisors LLC serves as the Sub-Advisor to the Fund.