Targeted thematic exposure - Stroeve Lemberger

This presentation is directed at Professional Investors only and is not for Retail Investors. 1

Targeted thematic exposure

PURE EXPOSURE TO THE THEME

Perfect expression of investors’

belief in a powerful megatrend

BREAKS SECTOR BIAS

Companies involved in

cybersecurity in any industry

STOCK EXPOSURE

Meaningful investment in

future global players, both

known and unknown

Efficiently capturing a significant global growth opportunity


The Power of Being Digital: The Progression of the Internet

INTERNET CYBER SECURITYCLOUD COMPUTING


“Cloud computing as a style of computing

in which scalable and elastic IT-enabled

capabilities are delivered as a service using

Internet technologies.” - Gartner.com Glossary

What is Cloud Computing?


A Legacy of Innovation: A History of Computing

1800sAda Lovelace

Charles Babbage

1930sAlan Turing

“The Turing Machine”

1940sMark 1

Mark 2

ENIAC

1950s/1960sBob Noyce

“Mayor of Silicon Valley”

Hewlett Packard

1970s/80s Steve Jobs

Steve Wozniak

Bill Gates

Today &

Beyond

2000sInternet

iOS

Android


What is Cloud Computing?▪ Method of providing a set of shared computing resources that includes applications, computing, storage, networking, development,

and deployment platforms as well as business processes.

▪ Seeks to turn traditional siloed computing assets into shared pools of resources based on an underlying internet foundation.

SOFTWARE AS A SERVICE – SaaS

Delivering software applications over the internet

Email – Online Storage & Access – CRM

PLATFORM AS A SERVICE – PaaS

Allows for creation of web applications efficiently without buying & maintaining software and infrastructure

Databases – Webservers – Applications

INFRASTRUCTURE AS A SERVICE – IaaS

Delivering Cloud Computing Infrastructure

Servers – Storage – Network - Firewalls – IP Addresses

Source: First Trust.


Cloud Computing Video

Source: https://www.youtube.com/watch?v=J9LK6EtxzgM.

From the video ‘Changes to computer thinking - Stephen Fry explains cloud computing’ by Databarracks. First Trust is not affiliated with, and in no way promotes or endorses Databarracks or their products.

https://www.youtube.com/watch?v=J9LK6EtxzgM

https://www.youtube.com/watch?v=J9LK6EtxzgM


Source: Forrester, as at April 2011 – Sizing The Cloud. *Estimate. These predictions are not intended to imply or guarantee future performance and there is no assurance that the projections will be realized.

Past Growth & ForecastsForecast: Global Public Cloud Market Size (in billions)

0

20

40

60

80

100

120

140

160

180

2008 2009 2010 2011 2012* 2013* 2014* 2015* 2016* 2017* 2018* 2019* 2020*

BPaaS SaaS PaaS IaaS


99,5116,0

133,0151,1

43,7

46,9

50,2

53,8

40,3

50,0

61,3

74,1

32,2

39,7

48,3

58,0

12,0

13,8

15,7

17,6

2019 Estimate 2020 Estimate 2021 Estimate 2022 Estimate

Cloud Management & Security Services Cloud Application Infrastructure Services (PaaS)

Cloud System Infrastructure Services (IaaS) Cloud Business Process Services (BPaaS)

Cloud Application Services (SaaS)

266.4

308.5

354.6

227.8

Forecasts Regularly Changing

Source: Gartner. These predictions are not intended to imply or guarantee future performance and there is no assurance that the projections will be realized.

Worldwide Public Cloud Service Revenues Forecast

(US Dollar Billions) - Gartner April 2019

Worldwide Public Cloud Service Revenues Forecast

(US Dollar Billions) - Gartner November 2019

94,8110,5

126,7143,7

49,3

53,1

57,0

61,138,9

49,1

61,9

76,6

19,0

23,0

27,5

31,8

12,2

14,1

16,0

17,9

2019 Estimate 2020 Estimate 2021 Estimate 2022 Estimate

Cloud Management & Security Services Cloud Application Infrastructure Services (PaaS)

Cloud System Infrastructure Services (IaaS) Cloud Business Process Services (BPaaS)

Cloud Application Services (SaaS)

249.9

289.1

331.2

214.3


WEARABLE DEVICES

Forbes Estimate:▪ Worldwide smart wearable device sales

will double by 2022.

▪ Becoming a $27 billion+ market with

233 million unit sales.

AUTOMOBILES

Counterpoint Project:▪ Over the next five years from 2018,

number of cars equipped with

embedded connectivity will rise by 300%.

SOCIETY

Forbes Indicates:▪ Cloud can provide the digital

infrastructure of tomorrow’s cities.

▪ Distinct, separate clouds, all working in

concert across different aspects of

society.

The Future of Cloud Computing – Cloud 2.0

Source: Forbes.com & Counterpoint.com.


The Future of Cloud Computing – Cloud 2.0 – Industries Connected

Cloud 2.0IOT

Autonomous

VehiclesHealthcare

AR/VRSmart Homes

Finance Services

Mobile

Technologies

Government

Enterprise

AI

Content

Edge Computing

Future???


The economic value of IOT has, if anything

been underestimated; McKinsey Global

Institute “looked at more than 150 specific

IoT applications that exist today or could

be in widespread use within 10 years and

estimate that they could have a total

economic impact of $3.9 trillion to

$11.1 trillion per year in 2025”McKinsey Institute


The Cloud Forecast

There is no guarantee that past trends will continue or predictions will be realised or that they will benefit securities in the strategy.

2022 Databases Will Be Deployed Or Migrated To A Cloud PlatformGartner

75%

2022 Global Cloud Services Revenues – Up From $227.8B in 2019Gartner

$354.6B

2022 Global Cloud IT Infrastructure Spending – Up From $66.1B in 2018Statista

$88.6B

2022 Public Cloud Management And Security Services Market Size – Up From $10.5B in 2018Statista

$15.7B


First Trust Cloud Computing UCITS ETF (“SKYE”)

KEY FUND FACTS

Fund Ticker FSKY LN, SKYU LN, SKYE NA, FSKY IM

Exchange Listing LSE, LSE, Euronext Amsterdam, Borsa Italiana

ISIN Code IE00BFD2H405

Fund Inception Date 27 December 2018

TER 0.60%

Tracking Index Name ISE Cloud Computing IndexTM

Income Treatment Accumulation

Fund Base Currency USD



The ISE Cloud Computing Index Methodology▪ The index is a modified equal weighted index designed to track the performance of companies involved in the cloud computing industry, designed to

measure the performance of companies engaged in a business activity in the cloud computing industry.

▪ Listed on an index-eligible global stock exchange and have a market capitalization of at least $500 million.



Source: First Trust, as at 30 April 2020. Portfolio holdings are subject to change at any time. References to specific securities should not be construed as a recommendation to buy or sell and should not be assumed profitable.

SKYE HoldingsHolding Weight

Amazon.com, Inc. 5.11%

Microsoft Corporation 4.30%

VMware, Inc. Class A 4.24%

Oracle Corporation 4.16%

Alphabet Inc. Class A 3.91%

Arista Networks, Inc. 3.68%

Citrix Systems, Inc. 3.63%

MongoDB, Inc. Class A 3.44%

Alibaba Group Holding Ltd. Sponsored

ADR 3.16%

Akamai Technologies, Inc. 2.93%

CenturyLink, Inc. 2.85%

Cisco Systems, Inc. 2.75%

Shopify, Inc. Class A 2.65%

Five9, Inc. 2.47%

ServiceNow, Inc. 2.10%

Holding Weight

Atlassian Corp. Plc Class A 2.08%

Adobe Inc. 1.99%

Twilio, Inc. Class A 1.94%

International Business Machines

Corporation 1.88%

Splunk Inc. 1.85%

salesforce.com, inc. 1.85%

Pure Storage, Inc. Class A 1.83%

HubSpot, Inc. 1.83%

NetApp, Inc. 1.82%

MicroStrategy Incorporated Class A 1.82%

Nutanix, Inc. Class A 1.67%

Hewlett Packard Enterprise Co. 1.53%

Appian Corporation Class A 1.34%

SAP SE Sponsored ADR 1.24%

Cloudera, Inc. 1.21%

Holding Weight

Domo, Inc. Class B 1.19%

Veeva Systems Inc Class A 0.87%

Zscaler, Inc. 0.84%

Zoom Video Communications, Inc. Class

A 0.83%

Teradata Corporation 0.80%

DocuSign, Inc. 0.79%

Coupa Software, Inc. 0.76%

Smartsheet, Inc. Class A 0.74%

CrowdStrike Holdings, Inc. Class A 0.73%

Tabula Rasa Healthcare, Inc. 0.73%

Cloudflare Inc Class A 0.72%

Dropbox, Inc. Class A 0.70%

Q2 Holdings, Inc. 0.69%

Avalara Inc 0.68%

Everbridge, Inc. 0.68%

Holding Weight

Mimecast Limited 0.67%

Intuit Inc. 0.66%

BlackLine, Inc. 0.63%

Zendesk, Inc. 0.63%

Box, Inc. Class A 0.62%

New Relic, Inc. 0.62%

Paycom Software, Inc. 0.60%

Anaplan, Inc. 0.59%

Open Text Corporation 0.59%

Workiva, Inc. Class A 0.58%

AppFolio Inc Class A 0.58%

Workday, Inc. Class A 0.58%

Elastic NV 0.56%

Benefitfocus, Inc. 0.56%

SVMK, Inc. 0.56%

Cornerstone Ondemand, Inc. 0.53%

Blackbaud, Inc. 0.53%

Zuora, Inc. Class A 0.52%

Eventbrite, Inc. Class A 0.40%


First Trust Cloud Computing UCITS ETF (“SKYE”) Growth Comparison

Source: FactSet., as at 20 March 2020. References to specific companies should not be construed as a recommendation to buy or sell shares or other financial instruments issued by those companies, and neither should they be assumed profitable.

Past performance is no guarantee of future results. Total results refers to the full portfolio and benchmark holdings & returns. Please see end of presentation for definitions.

March 20, 2020 FSKY S&P 500 Index

Sales Growth (Weighted Average) 24.16% 7.96%

3-5 Year EPS Growth Forecast 22.8% 10.8%

Fastest Growing 10 Holdings by Sales Sales Growth Weighting in S&P 500 Index

Zoom Video Communications, Inc. Class A 88.39% -

Twilio, Inc. Class A 74.52% -

Elastic NV 69.85% -

Cloudera, Inc. 65.48% -

Zscaler, Inc. 59.24% -

MongoDB, Inc. Class A 57.94% -

Smartsheet, Inc. Class A 52.42% -

Coupa Software, Inc. 49.68% -

Cloudflare Inc Class A 48.97% -

Alibaba Group Holding Ltd. Sponsored ADR 48.69% -

▪ As at 20 March 2020, none of the 10

fastest growing companies in FSKY are

in the S&P 500 Index

▪ As at 20 March 2020, FSKY returns

had grown three times of the sales

growth and double of 3-5 year EPS

Growth forecast when compared to the

S&P 500 Index


Annualised Index Performance (%)

Source: Bloomberg, as at 28 February 2020. The information is for illustrative purposes only and is not indicative of a Fund or Strategy. Past performance is not a reliable indicator of future results. Please see end of presentation for definitions.

16,0

19,3

9,2

12,6

5 Years 10 Years

0

5

10

15

20

25

ISE CTA Cloud Computing™ Index S&P 500 Index

This presentation is directed at Professional Investors only and is not for Retail Investors.17

Cloud 1.0 – Phase 1: High Beta? Alpha

5 YEARS CUMULATIVE PERFORMANCEStatistics

ISE Cloud

Computing Total

Return Index

S&P 500

Total

Return Index

S&P Composite

1500 Information

Technology (Sector)

Total Return Index

Annualised Performance 15.96% 9.21% 17.92%

Annualised Standard Deviation 14.89% 12.36% 16.00%

Sharpe Ratio 1.00 0.63 1.04

Alpha 7.10% — 7.78%

Beta 0.99 — 1.14

Correlation 0.82 — 0.88

Source: Bloomberg, as at 28 February 2020. The information is for illustrative purposes only and is not indicative of a Fund or Strategy. Past performance is no guarantee of future results. Please see end of presentation for definitions.

-20%

0%

20%

40%

60%

80%

100%

120%

140%

160%

ISE Cloud Computing Total Return Index

S&P 500 Total Return Index

S&P Composite 1500 Information Technology (Sector) Total Return Index


Cloud and the Environment – Google 2019 Environmental Report

Source: Google, https://sustainability.google/reports/environmental-report-2019. References to specific securities should not be construed as a recommendation to buy or sell and should not be assumed profitable.

https://sustainability.google/reports/environmental-report-2019


Dematerialization into Decarbonisation – Google 2019 Report












(31-DEC-2019 to 30-APR-2020) FSKY S&P 500 Index

Portfolio

Average Weight

Portfolio

Total Return

Portfolio

Contribution To Return

Benchmark

Average Weight

Benchmark

Total Return

Benchmark

Contribution To ReturnTotal Effect

Total 100.00 3.50 3.50 100.00 -9.59 -9.59 13.08

Shopify, Inc. Class A 2.99 58.51 1.48 -- -- -- 1.81

Citrix Systems, Inc. 3.26 30.72 1.32 0.06 30.72 0.02 1.42

Five9, Inc. 2.40 40.84 1.05 -- -- -- 1.20

MongoDB, Inc. Class A 3.59 22.78 0.75 -- -- -- 1.15

Zoom Video Communications, Inc.

Class A 1.07 98.01 0.81 -- -- -- 0.78

Akamai Technologies, Inc. 3.16 12.74 0.56 0.06 12.74 0.01 0.78

Amazon.com, Inc. 4.87 33.44 1.84 3.40 33.44 1.27 0.70

ServiceNow, Inc. 2.35 24.11 0.36 0.23 24.11 0.04 0.63

Oracle Corporation 4.05 0.55 0.27 0.46 0.55 0.03 0.60

Twilio, Inc. Class A 2.25 13.89 0.30 -- -- -- 0.51

Zscaler, Inc. 0.81 43.78 0.43 -- -- -- 0.43

DocuSign, Inc. 0.86 40.88 0.34 -- -- -- 0.40

Boeing Company -- -- -- 0.51 -56.59 -0.43 0.38

Appian Corporation Class A 1.50 19.13 0.14 -- -- -- 0.37

JPMorgan Chase & Co. -- -- -- 1.45 -30.35 -0.53 0.36

Everbridge, Inc. 0.84 42.18 0.29 -- -- -- 0.35

Adobe Inc. 2.39 6.87 0.15 0.66 6.87 0.05 0.34

Veeva Systems Inc Class A 0.75 35.20 0.28 -- -- -- 0.34

Tabula Rasa Healthcare, Inc. 0.89 29.69 0.23 -- -- -- 0.33

Cloudflare Inc Class A 0.77 37.64 0.26 -- -- -- 0.32

YTD Top 20 SKYE vs S&P 500 Attribution

Source: FactSet, as at 30 April 2020. Past performance is not a reliable indicator of future results. Please see end of presentation for definitions.

References to specific securities should not be construed as a recommendation to buy or sell and should not be assumed profitable.


1 Month Market & Stock Volatility (06 Feb – 06 Mar 2020)

Source: First Trust, as at 30 April 2020. Past performance is not a reliable indicator of future results. Please see end of presentation for definitions.



3 Month Market & Stock Volatility (06 Feb – 30 Apr 2020)

Source: First Trust, as at 30 April 2020. Past performance is not a reliable indicator of future results. Please see end of presentation for definitions.



YTD Market & Stock Volatility (YTD May 29 2020)

Source: First Trust, as at 29 May 2020. Past performance is not a reliable indicator of future results. Please see end of presentation for definitions.



First Trust Cloud Computing UCITS ETF (“SKYE”)

KEY FUND FACTS

Fund Ticker FSKY LN, SKYU LN, SKYE NA, FSKY IM

Exchange Listing LSE, LSE, Euronext Amsterdam, Borsa Italiana

ISIN Code IE00BFD2H405

Fund Inception Date 27 December 2018

TER 0.60%

Tracking Index Name ISE Cloud Computing IndexTM

Income Treatment Accumulation

Fund Base Currency USD



The first quarter of 2020 was dominated by the outbreak of the novel Coronavirus (“Covid-19”). As of the end of March 2020, there are over 2 million confirmed cases globally with over 100,0001 deaths. This has led to widespread

government-driven lockdowns, and the temporary shutdown of many sectors of the global economy.

As a result of the virus most of the world, apart from essential workers, are now working from home. Data has suggested that this new working from home(“WFH”) explosion from COVID-19 could be the catalyst in accelerating the global

investment toward cloud computing that was already well underway before the virus outbreak.2 We believe that Cloud computing is and will continue to be one of the fastest growing market segments within the “technology” space and is

therefore, one of the potentially best sectors to allocate investment capital.

We all use one or all of Google Docs, Microsoft Office 365, Dropbox, Skype, Adobe reader and Zoom. All these services are enabled through various cloud computing technologies. To further understand the application and potential

growth in cloud computing, it is important to define what is considered “cloud computing.”

Cloud computing is made up of three major categories, Infrastructure as service (“Iaas”), Platform as a service (“Paas”), and Software as a service (“Saas”). We will explain the three briefly, and you can also view the infographic with

familiar company examples below.

Cloud Computing Outlook 2020

• Infrastructure as a service: IaaS providers, such as AWS, supply a virtual server instance and storage, as well as

APIs that enable users to migrate workloads to a virtual machine (VM). Users have an allocated storage capacity and

can start, stop, access and configure the VM and storage as desired. IaaS providers offer small, medium, large, extra-

large and memory- or compute-optimized instances, in addition to customized instances, for various workload needs.

• Platform as a service: In the PaaS model, cloud providers host development tools on their infrastructures. Users

access these tools over the internet using APIs, web portals or gateway software. PaaS is used for general software

development, and many PaaS providers host the software after it’s developed. Common PaaS providers include

Salesforce’s Lightning Platform, AWS Elastic Beanstalk and Google App Engine.

• Software as a service: SaaS is a distribution model that delivers software applications over the internet; these

applications are often called web services. Users can access SaaS applications and services from any location using a

computer or mobile device that has internet access. In the SaaS model, users gain access to application software and

databases. One common example of a SaaS application is Microsoft Office 365 for productivity and email services.” 3


Now that we have a better understanding of what, where, and how cloud computing is used, it is crucial to understand that we are still unsure what the actual economic or business impact of Coronavirus will be, given we are only now

starting to receive Q1 2020 earnings results. The importance of this uncertainty cannot be understated because the magnitude of the figures below was before the virus outbreak and the potentially heightened level of investment and

usage.

According to a Gartner report in November 2019, the cloud computing market was expected to grow from ~$227B to $354B in size by the close of just 2022.4 To set this ~$127B in net growth in a perspective of size, consider Apple as

one of the largest tech companies in the world. As many readers may know, the iPhone is widely considered the driver behind Apple’s meteoric rise over the past two decades.4 In the 4th Quarter of 2019, Apple reported sales of roughly

$142B in iPhones over the preceding 12 months. Apple’s gross margins are 37.6%. As an example of the potential here, consider six companies reliant upon (Mongo DB, Zoom Video, Salesforce.com, and DocuSign) or conglomerates

heavily involved in (Microsoft, Amazon) cloud computing. These companies currently have margins of 67.9%, 81.5%, 68%,73.8%, 65.8%, and 41%, and respectively. Roughly speaking, this means an average 55% margin (48% higher) in

total, or with those specifically reliant on cloud computing an average margin of almost 73% which is almost double the margins of Apple.5


Source: FactSet., as at 20 March 2020. References to specific companies should not be construed as a recommendation to buy or sell shares or other financial instruments issued by those companies, and neither should they be assumed profitable. Past performance is no guarantee of future results. Total results refers to the full portfolio

and benchmark holdings & returns. Please see end of presentation for definitions.

Looking more broadly to the last round of earnings reports in Q419, prior to words like “Covid-19,” “novel

coronavirus,” “WFH,” “social distancing” and “zoom” becoming everyday vernacular, the weighted average

sales growth for the S&P 500 Index had come in at 7.96%, which was strong. However, when compared to

the companies in First Trust Cloud Computing UCITS ETF(“FSKY”) which was 24.16% as of 31 March 2020,

they do not look quite as robust. In addition to three times the top line growth of trailing 12-month sales

growth, the weighted average estimated bottom line growth(3-5yr EPS forecasts) were coming in a 22.8% for

the cloud companies relative to 10.8% for the S&P 500 Index. 6

Digging in to this one more level, as of these last public filings, the fastest growing company in FSKY was

Zoom Video Communications, recording an 88% sales growth before Coronavirus outbreak. This was before

they saw their user base grow from ~10m to ~200m. In fact, there were 13 companies reporting more than

40% sales growth with only Alibaba being a more widely known name. 7

A few more projections to consider. Cloud computing enables Internet of Things (“IOT”) to flourish and

according to McKinsey the economic value of IOT has, if anything, been underestimated “looked at more

than 150 specific IOT applications that exist today or could be in widespread use within 10 years and

estimate that they could have a total economic impact of $3.9 trillion to $11.1 trillion per year in 2025.” Oracle

has noted recently that only 20% of enterprise computing is in the cloud this far 8. Further, Gartner is

forecasting that by 2022 75% of databases will be migrated over to a cloud platform.9


We believe it is important to cast a “wide net” to capture the companies that emerge as the winners in themes such as cloud computing. Revisiting the $127Billion forecast increased sales growth, it is imperative that the reader be aware

that this figure is split quite equally across Iaas, Paas, and Saas, thus highlighting the need to invest in the “whole stack,” to fully profit from that forecast. Breaking the number into its parts reveals about a $51.6 Billion forecast growth for

Saas Sales, $35.9B for Paas and $34B for Iaas. 10

While the current environment has shone a spotlight on cloud computing, the data above suggests that regardless of COVID-19, cloud computing was due for a continued and steady growth. Even as many companies entered this crisis

unprepared to allow employees to WFH, the cloud companies have shown how easy they can be to use and their scalability to enable so much of the world to maintain working almost seamlessly. It’s hard to imagine how the transition

would have gone without cloud computing.

This resiliency has not been lost on the market as at the worst point thus far, the cloud stocks in FSKY had outperformed the S&P 500 into the 23 of March 2020 bottom by 12.25% (-18.17% to -30.43%).11 As of April 14th, FSKY is only

down 1.75% for the year as the S&P 500 remains down 11.38% from where it started 2020.12

The forecast looks incredibly bright for cloud computing, in our opinion, and we have been believers in the trend going all the way back to 2011, when we launched the world’s first cloud computing ETF (First Trust Cloud Computing ETF

‘SKYY’- now a $2B ETF.) More recently, we launched the NASDAQ Cloud Computing Index tracking ETF to UCITS in 2018, crossing $100 million in AUM in April 2020.13

Of course, it’s not all rainbows and sunshine. The WFH transition and the unexpected cloud shift COVID-19 is already weighing on IT security concerns and budgets, and one Instinet survey describes companies’ shifting spending toward

cloud providers and security over PCs and local servers. This shift accompanies the uncertainty of how long millions of employees will need to work remotely and still communicate with colleagues and clients with as close to the same

security of working on a secure centralized server network.

Overall spending on IT budgets is now projected to drop according to the 50 CIOs surveyed by Instinet, “86% said that security was now a higher budget priority and 68% said cloud services would become more of a priority.”14. As such,

we believe that while Cloud computing offers an investment into an area of potentially explosive growth moving forward, we also believe that funds covering complimentary areas such as cybersecurity, block chain technologies and IOT

will also grow substantially as well.


Foot notes: Source:

1 https://www.jhu.edu/

2 https://www.marketwatch.com/story/cloud-companies-appear-to-be-silver-lining-as-coronavirus-dampens-it-spending-2020-04-02

3 https://searchcloudcomputing.techtarget.com/definition/cloud-computing

4 Gartner. These predictions are not intended to imply or guarantee future performance and there is no assurance that the projections will be realized.

5 FactSet as of 14 April 2020

6 FactSet., as of 20 March 2020.

7 FactSet, as of 14 April 2020.

8 https://seekingalpha.com/news/3504592-oracle-to-hire-2000-in-cloud-computing-push



11 Bloomberg, as of 23 March 2020.

12 First Trust, as of 14 April 2020

13 First Trust, as of 14 April 2020

14 https://www.marketwatch.com/story/cloud-companies-appear-to-be-silver-lining-as-coronavirus-dampens-it-spending-2020-04-02

References to specific companies should not be construed as a recommendation to buy or sell shares or other financial instruments issued by those companies, and neither should they be assumed profitable.


Cloud Computing | First Trust Cloud Computing UCITS ETF


Universe | To be included in the Index, a security must be engaged in a business activity supporting or utilizing the cloud computing space, listed on an index-eligible stock exchange and must satisfy certain requirements including:

• Minimum market capitalization of $500 million

• Minimum free float of 20%

• Three-month average daily dollar trading volume (ADDTV) of $5 million

Classify Securities

A security must be classified as a Cloud Computing company defined below by Consumer Technology Association (CTA):

• Infrastructure-as-a-Service (IaaS):

Companies that deliver cloud computing infrastructure – servers, storage, and networks – as an on-demand service.

• Platform-as-a-Service (PaaS):

Companies that deliver a platform for the creation of software in the form of virtualization, middleware, and/or operating systems, which is then delivered over the internet.

• Software-as-a-Service (SaaS):

Companies that deliver software applications over the internet enabling other companies to conduct their operations using the application.

Assign Business Segment Allocation

• The Index employs a modified equal weighted methodology – effectively “Cloud Score” weighted similar to market cap weighted.

• At every Index Evaluation, each security receives a score of 3 if it is classified as IaaS, 2 if it is classified as PaaS and 1 if it is classified as SaaS. Each company’s Cloud Score is then summed.

• This sum is divided by the total sum of the scores in the universe to determine the weight of each security.

• Individual security weights are capped at 4.5%.

Individual Weight | Maximum Number of Securities in the Index Limited To 80.

Rebalance | The Index is reconstituted and rebalanced quarterly.

Cloud Computing | First Trust Cloud Computing UCITS ETF


The Fund’s shares may change in value and may go down as well as up. You could lose money by investing in the fund. You may not get back all of the money you invest.

One of the principal risks of investing in the Fund is market risk. Market risk is the risk that a particular stock owned by the Fund, fund shares or stocks in general may fall in value. There can be no assurance that the fund’s investment objective will

be achieved.

The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. The impact of the COVID-19 pandemic may be

short term or may last for an extended period of time, but in either case could result in an economic downturn or recession.

The Fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

An investment in a fund containing securities of non-U.S. issuers is subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-

U.S. issuers.

The Fund may invest in depositary receipts which may be less liquid than the underlying shares in their primary trading market.

This Fund’s Net Asset Value (NAV) is likely to have high volatility due to the portfolio composition and/or the index replication technique. As such, potential investors should be aware that the Fund’s shares may change in value, and may do so in a

volatile fashion; potential investors could lose money by investing in the Fund.

Information technology companies and cybersecurity companies are generally subject to the risks of rapidly changing technologies, short product life cycles, fierce competition, aggressive pricing and reduced profit margins, loss of patent, copyright

and trademark protections, cyclical market patterns, evolving industry standards and frequent new product introductions. Cybersecurity companies may also be smaller and less experienced companies, with limited product lines, markets, qualified

personnel or financial resources.

The Fund invests in information technology companies, which are subject to certain risks, including rapidly changing technologies, short product life cycles, fierce competition, aggressive pricing and reduced profit margins, loss of patent, copyright

and trademark protections, cyclical market patterns, evolving industry standards and frequent new product introductions. Certain companies may be smaller and less experienced companies, with limited product lines, markets or financial

resources. Information technology company stocks, especially those which are Internet related, have experienced extreme price and volume fluctuations that are often unrelated to their operating performance.

The risks related to investing in cloud computing companies include interruptions or delays in service, security breaches involving sensitive, proprietary and confidential information, privacy concerns and laws, and other regulations that may limit or

otherwise affect the operations of such companies.

There may be tracking difference between the Fund and the underlying index due to the impact of the annual Fund management fees. Therefore, the Fund’s return may not match the return of the Nasdaq CTA Cybersecurity Index℠.

Changes in currency exchange rates and the relative value of non-US currencies may affect the value of a fund’s investments and the value of a fund’s shares.

Neither First Trust Global Portfolios Limited (“FTGP”) nor any of its affiliates, guarantees the performance or the future returns of the Fund.

For more details relating to risks of investing in the Fund, please refer to the “Risk Factors” section of the Fund’s prospectus.

Risks


ISE Cloud Computing Index Description

The Index is a modified market capitalization weighted index designed to track the performance of companies actively involved in the cloud computing industry. To be included in the Index, a security must be engaged in a business activity

supporting or utilizing the cloud computing space, listed on an index eligible global stock exchange and have a market capitalization of at least $100 million.

All securities are then classified according to the following three business segments:

• Pure Play Cloud Computing Companies: Companies that are direct service providers for “the cloud” (network hardware/software, storage, cloud computing services) or companies that deliver goods and services that utilize cloud computing

technology.

• Non Pure Play Cloud Computing Companies: Companies that focus outside the cloud computing space but provide goods and services in support of the cloud computing space.

• Technology Conglomerate Cloud Computing Companies: Large broad-based companies that indirectly utilize or support the use of cloud computing technology.

The overall weight for each of the three business segments is calculated as follows:

• 10% of the index weight is allocated to technology conglomerate companies.

• The index weight that is allocated to non pure play companies is calculated by dividing the non pure play companies’ market capitalization by the sum of the pure play and non pure play market capitalizations.

• The remainder of the index weight is allocated to pure play companies.

Stocks are equally weighted within each of the three classifications.

The Index is reconstituted and rebalanced semi-annually.

The First Trust Cloud Computing UCITS ETF is not sponsored, endorsed, sold or promoted by Nasdaq, Inc., or its affiliates (Nasdaq, with its affiliates, are referred to as the “Corporations”). The Corporations’ only relationship to First Trust is in the

licensing of Nasdaq, Inc. and certain trade names of the Corporations and the use of the ISE Index which is determined, composed and calculated by Nasdaq, Inc. without regard to First Trust or the Fund. The First Trust Cloud Computing UCITS

ETF is not sponsored, endorsed, sold or promoted by Nasdaq, Inc., or its affiliates (Nasdaq, with its affiliates, are referred to as the “Corporations”). The Corporations’ only relationship to First Trust is in the licensing of Nasdaq, Inc. and certain trade

names of the Corporations and the use of the ISE Index which is determined, composed and calculated by Nasdaq, Inc. without regard to First Trust or the Fund.

Index Descriptions


This presentation is confidential and is intended solely for the use of the person or persons to whom it is given or sent and may not be reproduced, copied or given, in whole or in part, to any other person.

This document is issued by FTGP of 8 Angel Court, London, EC2R7HJ. FTGP is authorised and regulated by the UK Financial Conduct Authority (“FCA”) (FRN: 583261). The Fund is not regulated by the FCA.

Nothing contained herein constitutes investment, legal, tax or other advice and it is not to be solely relied on in making an investment or other decision, nor does the document implicitly or explicitly recommend or suggest an investment strategy, reach conclusions in

relation to an investment strategy for the reader, or provide any opinions as to the present or future value or price of any fund. It is not an invitation, offer, or solicitation to engage in any investment activity, including making an investment in the Fund, nor does the

information, recommendations or opinions expressed herein constitute an offer for sale of the Fund.

The Fund is an open-ended sub-fund of the First Trust Global Funds PLC (the “Company”), an umbrella UCITS fund with segregated liability between sub-funds, incorporated with limited liability as an investment company with variable capital under the laws of Ireland

with UCITS registered number 514357.

The material in this document is not comprehensive and must therefore be read in conjunction with the Fund’s prospectus, which contains material information not contained herein, including the terms of investment and information regarding investment risks and

restrictions, fees and expenses and conflicts of interests. Potential investors should pay particular attention to the risk disclosures in the “Risk Factors” section of the Fund’s prospectus. No assurance can be given that the Fund’s investment objective will be achieved

or that the Fund will generate a positive return. Contact FTGP or visit www.ftglobalportfolios.com to obtain a Prospectus and/or Key Investor Information Document (available in English).

Shares of the Fund are not available for sale in any state or jurisdiction in which such sale would be prohibited. The shares of the Funds have not been registered under the US Securities Act of 1933, as amended, and the Fund is not registered under the US

Investment Company Act of 1940, as amended. Neither this material nor the Fund’s shares are available to or suitable for US persons.

UCITS ETF’s units/shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may receive less than

the current net asset value when selling them.

Portfolio Holdings Disclosure Policy:

The Company’s portfolio holdings policy is designed to be transparent, whilst being in the best interest of the Funds and protecting the confidentiality of each Fund’s portfolio holdings. The full portfolio holdings for the Fund shall generally be available daily, with a one-

day lag, on www.ftglobalportfolios.com. Any portfolio holdings information which may otherwise be provided on request shall be provided on a confidential basis.

For Investors in the UK

This document is only for, or directed at persons who are professional clients or eligible counterparties for the purposes of the FCA’s Conduct of Business Sourcebook. This document is exempt from the scheme promotion restriction (in Section 238 of the Financial

Services and Markets Act 2000 (“FSMA”) on the communication of invitations or inducements to engage in investment activity) on the grounds that it is a recognised collective investment scheme (a “recognised scheme”) for the purposes of section 264 of the FSMA of

the United Kingdom. Most of the protections provided by the UK regulatory system do not apply to the operation of the Fund and compensation will not be available under the UK Financial Services Compensation Scheme on its default.

For Investors in Austria

The Fund is registered for public offer in Austria. The Prospectus, Key Investor Information Document (“KIID”) and other documents, as well as the annual and semi-annual reports have been published in Austria and are available free of charge from Erste Bank der

österreichischen Sparkassen AG, Graben 21, A-1010 Wien, the Austrian paying and information agent.

For Investors in Belgium

The offering of Shares has not been and will not be notified to the Belgian Financial Services and Markets Authority (Autoriteit voor Financiële Diensten en Markten/Autorité des Services et Marchés Financiers) nor has this document been, nor will it be, approved by the

Financial Services and Markets Authority. Shares may be offered in Belgium only to professional investors, in reliance of article 5, §1 of the Law of August 3, 2012 on collective investment undertakings that satisfy the conditions of Directive 2009/65/EC and

undertakings for investments in receivables (the “Law of August 3, 2012”), such investors acting for their own account and subject to them complying with the resale condition as set forth in that article 5, §1 of the Law of August 3, 2012.

Important Information


For Investors in Denmark

This document is only for the attention of “Professional” investors as defined in Directive 2004/39/EC dated 21 April 2004 on Markets in Financial Instruments (MIFID), to investment services providers and any other professional of the financial industry. The products

and services to which this communication relates are only available to such persons and persons of any other description should not rely on this communication. The Fund has been registered with the Financial Supervisory Authority of Denmark (Finanstilsynet) in

order to market its shares for sale to professional investors only in Denmark in accordance with the Danish Investment Associations Act and Executive Order on the Marketing of Foreign UCITS in Denmark, each as amended from time to time.

For Investors in Finland

This document is only for the attention of “Professional” investors as defined in Finnish law implementing Directive 2004/39/EC dated 21 April 2004 on Markets in Financial Instruments (MIFID), to investment services providers and any other professional of the

financial industry. The products and services to which this communication relates are only available to such persons and persons of any other description should not rely on this communication. The Fund has been registered with the Financial Supervisory Authority

of Finland (Finanssivalvonta) in order to market its shares for sale to professional investors only in Finland in accordance with the Finnish Act on Common Funds (48/1999) as amended from time to time.

For Investors in France

This document is only for the attention of professional investors (as defined under the European Directive 2004/39/EC dated 21 April 2004 on Markets in Financial Instruments (“MIFID”)), investing for their own account or on behalf of their discretionary clients and

management companies (fund of funds). It is not to be distributed to the public. The marketing of the Fund by First Trust Global Funds plc has been notified to the Autorité des marchés financiers in accordance with the European Directive 2014/91/EU dated 23 July

2014 (“UCITS V”). Prospective investors may obtain the KIIDs (in French or English language) and the current prospectus, the articles of incorporation, as well as the latest annual and semi-annual reports (in English language), free of charge from the French

Centralizing correspondent RBC Investors Services Bank France SA and it is located at 195, rue Réamur, 75002 Paris.

For Investors in Germany

This document is only for the attention of “Professional” investors as defined in Directive 2004/39/EC dated 21 April 2004 on Markets in Financial Instruments (“MIFID”), to investment services providers and any other professional of the financial industry. The offering

of the First Trust UCITS ETFs by the Company has been notified to the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) in accordance with Section 310 of the German Investment Code (KAGB). Prospective investors may obtain the KIID in German and the

current Prospectus, the articles of incorporation, as well as the latest annual and semi-annual report, in English, free of charge from FinCo Financial Communications GmbH, Großer Burstah 42, 20457 Hamburg.

For Investors in Iceland

This document has been issued to you for your use only and exclusively for the purpose of the described investment opportunities. Accordingly, this document and relevant information may not be used for any other purpose or passed on to any other person in

Iceland. The investment described in this document has been registered for public distribution in Iceland with the Financial Supervisory Authority pursuant to the Icelandic Act on Undertakings for Collective Investment in Transferable Securities (UCITS) and

Investment Funds and Institutional Investment Funds No. 128/2011 and supplementary regulations. The Investment may not be offered or sold by means of this document or in any way later resold otherwise than in accordance with the ACT No. 128/2011.

For Investors in Italy

This information document is addressed to professional investors only, as defined in Directive 2004/39/EC of 21 April 2004 (MiFID). The present document does not constitute in any way an offer or recommendation to make investments in the Fund or to execute

other transactions in relation to the latter. The investors shall consult with their investment consultants in order to analyse the legal, fiscal and accounting aspects of the investment or other transactions concerning the investment in the Fund and evaluate whether

such investment or transaction is suitable to their own risk profile, financial status and investment objectives. The Fund has been registered with the Commissione Nazionale per le Societá e la Borsa (CONSOB) for the offer in Italy towards professional investors only.

Before taking any investment decisions, the prospected investors should read carefully the KIID (available in Italian) and the Prospectus on the following website www.ftglobalportfolios.com.

For Investors in Luxembourg

The Fund is registered for public offer in Luxembourg. The Prospectus, Key Investor Information Document (“KIID”) and other documents as well as the annual and semi-annual reports are available in English free of charge from CACEIS Bank Luxembourg, 5, allée

Scheffer, L-2520 Luxembourg.



For Investors in the Netherlands

This document is only for the attention of “Professional” investors as defined in Directive 2004/39/EC dated 21 April 2004 on Markets in Financial Instruments (“MIFID”), to investment services providers and any other professional of the financial industry. The products

and services to which this communication relates are only available to such persons and persons of any other description should not rely on this communication. The Company has completed its notification to the Authority Financial Markets (Stichting Autoriteit

Financiele Markten) in the Netherlands in order to market its shares for sale to the public in the Netherlands according to Section 2:72 of the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht) as amended from time to time.

For Investors in Norway

This document is only for the attention of “Professional” investors as defined in Directive 2004/39/EC dated 21 April 2004 on Markets in Financial Instruments (MIFID). The products and services to which this communication relates are only available to such persons

and persons of any other description should not rely on this communication. The Fund has been registered with the Financial Supervisory Authority of Norway (Finanstilsynet) in accordance with the Norwegian Securities Funds Act section 9-3, in order to market its

shares for sale to professional investors only in Norway.

For Investors in Portugal

This information document is addressed to professional investors only, as defined in Directive 2004/39/EC of 21 April 2004 (MiFID). The present document does not constitute in any way an offer or recommendation to make investments in the Fund or to execute other

transactions in relation to the latter. The investors shall consult with their investment consultants in order to analyse the legal, fiscal and accounting aspects of the investment or other transactions concerning the investment in the Fund and evaluate whether such

investment or transaction is suitable to their own risk profile, financial status and investment objectives. The offering of the First Trust UCITS ETFs in Portugal has been notified to the Portuguese Securities Market Commission (Comissão do Mercado dos Valores

Mobiliários) for the purposes of Article 196 of the Portuguese General Framework on Collective Investment Schemes (Regime Geral dos Organismos de Investimento Colectivo). Prospective investors may obtain the KIID in Portuguese and the current Prospectus, the

articles of incorporation, as well as the latest annual and semi-annual report, in English, free of charge from www.ftglobalportfolios.com.

For Investors in Spain

This document is only for, or direct at persons who, are “professional clients” for the purposes of Article 205 of the Royal Legislative Decree 4/2015, of 23 October, which approves the recast text of the Securities Market Law. The products and services to which this

communication relates are only available to such persons and persons of any other description should not rely on this communication. The Fund has been registered with the Comisión Nacional del Mercado de Valores (CNMV) in Spain with registration number 1545.

Any investment decision must be based solely on the basis of a careful consideration and understanding of all information contained in the latest Fund’s prospectus and key investor information document (KIID). All mandatory official documentation (including the

prospectus and the KIID) shall be available through the relevant distributors in Spain, in hard copy or by electronic means, and also available free of charge upon request by dialling +44(0)203 195 7121, writing to [email protected] or consulting

www.ftgportfolios.com, where you may also obtain updated information on the net asset value of the relevant shares. It is advisable to obtain further information and request professional advice before taking an investment decision.

For Investors in Sweden

This document is only for the attention of “Professional” investors as defined in the Swedish Securities Markets Act (Sw. lag (2007:528) om värdepappersmarknaden), implementing Directive 2004/39/EC dated 21 April 2004 on Markets in Financial Instruments (MIFID)

into Swedish law, to investment services providers and any other professional of the financial industry. The products and services to which this communication relates are only available to such persons and persons of any other description should not rely on this

communication. The Fund has been registered with the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) in accordance with Chapter 1, Section 7 of the Swedish Securities Funds Act (Sw. lag (2004:46) om värdepappersfonder), as amended from time

to time. Prospective investors may obtain the KIID in Swedish and the current Prospectus, the articles of incorporation, as well as the latest annual and semi-annual report, in English, free of charge from www.ftgportfolios.com.

For Investors in Switzerland

The distribution of shares in Switzerland will be exclusively made to, and directed at, qualified investors (the “Qualified Investors”), as defined in the Swiss Collective Investment Schemes Act of 23 June 2006, as amended (“CISA”) and its implementing ordinance.

Accordingly, the Fund is not registered, and will not be registered with the Swiss Financial Market Supervisory Authority (FINMA). This document and/or any other offering materials relating to the Fund may be made available in Switzerland solely to Qualified Investors.

For this, the Fund has appointed as Swiss Representative Oligo Swiss Fund Services SA, Av. Villamont 17, 1005 Lausanne, Switzerland, Tel: +41 21 311 17 77, email: [email protected]. The Fund’s paying agent is Banque Cantonale de Genève. Any Fund

Documentation may be obtained free of charge from the Swiss Representative in Lausanne. The information provided here is for general information only and historical performance is not a guide to current or future performance. The performance data does not take

account of commissions and costs incurred on the issue and redemption of shares.


http://www.ftglobalportfolios.com/

Documents

Targeted thematic exposure - Stroeve Lemberger