First Trust Hedged Equity Income Funds

strong>Risk Considerations

An investment in the Funds is speculative and not suitable for all investors. Investing in the Funds is only intended for experienced and sophisticated investors who are “accredited investors” and are willing to bear the high economic risks associated with such an investment. Investors should carefully review and consider potential risks before investing. See the Offering Memorandum for further disclosure of the risks of investment.An investor should carefully consider the investment objectives, risks, and charges and expenses of the Funds before investing. The Offering Memorandum contains this and other important information and is available through your financial advisor. You must read the Offering Memorandum carefully before investing. This document is not intended as a substitute for the Offering Memorandum and should not be relied upon as such.

Investments in the Funds will involve significant risks, including loss of the entire investment. The Funds’ investments are illiquid, as there will be no secondary market for interests in the Funds and none is expected to develop. Alternative investments such as the Funds are speculative, have higher fees than traditional investments, include a high degree of risk and are appropriate only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time.

Definitions

An option is a contractual obligation between a buyer and a seller. The buyer of a call option has the right, but not the obligation, to purchase an agreed upon quantity of an underlying asset from the writer (seller) of the option at a predetermined price (the strike price) at the option’s expiration, creating a long position. “Long” is an investment term used to describe ownership of the securities. A put option is the opposite of a call option and gives the buyer the right to sell to the writer (seller) the underlying asset at the strike price at the option’s expiration. For this right, the buyer pays a fee to the seller, called a premium. A call option is at-the-money (ATM) if the market price of the underlying security is equal to the strike price.

An investment in the Funds is limited to U.S. investors who are verified “Accredited Investors”. The offering of Interests is designed for sophisticated investors who are (i) “accredited investors” as defined in Rule 501(a) of Regulation D under the 1933 Act, (ii) United States persons, and (iii) knowledgeable and experienced in financial and business matters such that they are capable of evaluating the merits and risks of an investment in the Fund. The Funds must take reasonable steps to verify the “accredited investor” status of each potential investor in order to make use of the exemption under Rule 506(c) of Regulation D and potential investors must be prepared to provide documentation to the Funds or third-party agents or representatives to support their qualification. Investment in the Funds is not open to potential investors who are not United States persons.

FLEX Options are customized options contracts that provide investors the ability to customize terms of an option, including exercise style, strike price, underlying reference assets and expiration dates.

S&P 500 Index is an unmanaged index of 500 companies used to measure large-cap U.S. stock market performance.

Important Information

The information contained herein is provided for informational and discussion purposes only and is not, and may not be relied on in any manner as, legal, tax or investment advice or as an offer to sell or a solicitation of an offer to buy an interest in the Fund. A private offering of interests in the Funds will only be made pursuant to the Fund’s private placement memorandum, including supplements thereto (the “Offering Memorandum”) and the Fund’s subscription documents, which are furnished to accredited investors on a confidential basis through the First Trust Capital Management L.P. (FTCM) private asset platform. Financial advisors must sign a platform access agreement to obtain a login to view offering and subscription documents. The information contained herein will be superseded by, and is qualified in its entirety by, reference to the Offering Memorandum, which will contain additional information about the investment objective, terms and conditions of an investment in the Funds and may also contain tax information and risk and conflict of interest disclosures that are important to any investment decision regarding the Funds. Accordingly, this confidential investment information herein should not be relied upon in formulating an investment decision.

No person has been authorized to make representations or provide any information relating to these investments that are inconsistent with or not otherwise contained in the Offering Memorandum.

Investment in the Funds will involve significant risks, including loss of the entire investment. The Funds’ investments are illiquid, as there will be no secondary market for interests in the Funds and none is expected to develop. Alternative investments such as the Funds are speculative, have higher fees than traditional investments, include a high degree of complexity and risk and are appropriate only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time.

The Funds engage in leverage and other potential speculative practices that may increase volatility and risk of loss. Before deciding to invest in the Fund, prospective investors should read the Offering Memorandum in its entirety and pay particular attention to the risk factors contained therein. A verified “accredited investor” as defined in SEC Regulation D and should have the financial ability and willingness to accept the risk characteristics of the Funds’ investments and the Funds themselves.

Prospective investors should make their own investigations and evaluations of the information contained herein. Each prospective investor should consult its own attorney, business advisor and tax advisor as to legal, business, tax and related matters concerning the information contained herein and any offering. Important risk factors are set forth in the Fund’s Offering Memorandum, which should be considered carefully by prospective investors.

FTCM, Vest Financial (“Vest”), and First Trust Portfolios L.P. (“FTP”) are affiliated under common control. FTP is a registered broker-dealer and a member of both the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). FTP is the placement agent of the Funds and makes no recommendation regarding the purchase or sale of the funds interest for any potential investor. Neither FTP nor any of its officers, employees, agents or affiliates makes any express or implied warranty or undertaking with respect to this presentation or the Offering Memorandum and none of them accepts any responsibility or liability with respect to the accuracy or completeness of such documents. In addition, as FTP is a non-exclusive placement agent for the interests, FTP does not take any responsibility as to the proposed suitability of an investment in interests for any particular investor that elects to invest in the Funds through the services of an investment adviser, broker-dealer, family office or other intermediary. Prospective investors should consult with their own investment, legal, tax and other advisers when considering an investment in the Funds and should not rely upon FTP to provide any such services.

Since First Trust Portfolios L.P. ‘s (FTP) affiliate, First Trust Capital Partners LLC, owns a controlling interest in FTCM’s parent, First Trust Capital Solutions L.P., FTP will indirectly benefit from an increase in fees received by FTCM. Since FTCM’s management fees or other incentive fees are based upon a percentage of assets under management, the more assets under management, the higher fee income to both FTCM and FTP. In addition, due to such compensation, FTP has an incentive to sell private investments issued by funds managed by FTCM or offered through the FTCM private asset platform, resulting in a material conflict of interest which should be considered when deciding to invest in funds offered by or through FTCM. FTP will not be involved in the provision of services by FTCM to the Fund.

The third-party information used in this document has been obtained from various published and unpublished sources considered to be reliable. However, FTCM cannot guarantee its accuracy or completeness and thus does not accept liability for any direct or consequential losses arising from its use.

FTCM does not accept responsibility for the tax treatment of any investment product. FTCM assumes that, before making any commitment to invest, the investor and (where applicable, its beneficial owners) have taken whatever tax, legal or other advice the investor/beneficial owners consider necessary and have arranged to account for any tax lawfully due on the income or gains arising from any investment product provided by FTCM. An investor who is required to file a U.S. tax return may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of this investment and its transactions and all materials of any kind (including opinions or tax analyses) that are provided to the investor relating to such tax treatment and tax structure. Neither FTCM nor FTP provides tax or legal advice. For such advice, investors should consult their tax, legal, or other advisors as appropriate.

Certain information contained herein constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,”“will,”“should,”“expect,”“anticipate,” “target,”“project,”“estimate,”“intend,”“continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of the Funds may differ materially from those reflected or contemplated in such forward-looking statements. Some of the information contained in this summary has been obtained from third party sources. While such information is believed to be reliable for the purposes used herein, neither FTCM, nor any of its affiliates or partners, members or employees, assume any responsibility for the accuracy of such information.

IRS circular 230 disclosure: FTCM does not provide tax or legal advice. To ensure compliance with U.S. Treasury regulations, we hereby inform you that any discussion of U.S. tax matters contained in these materials (and any attachments) (i) were not intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoiding any U.S. tax-related tax-penalties and (ii) were written in connection with the “promotion or marketing” of the transaction(s) or matter(s) addressed in these materials. Accordingly, investors should seek advice based on their circumstances from an independent tax advisor.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, neither FTCM nor FTP is 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 including an investment in the Funds are appropriate for their clients.