Edgar Filing: FIRST TRUST VALUE LINE R 100 FUND

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21336
----------------------------
FIRST TRUST VALUE LINE(R) 100 FUND
-------------------------------------------------------
(Exact name of registrant as specified in charter)

1001 Warrenville Road
LISLE, IL 60532
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(Address of principal executive offices) (Zip code)

CT Corporation System
101 Federal Street,
BOSTON, MA 02110
-------------------------------------------------------
(Name and address of agent for service)

Registrant's telephone number, including area code: 630-241-4141
---------------------
Date of fiscal year end: DECEMBER 31, 2004
--------------------------
Date of reporting period: JUNE 30, 2004
-------------------------

Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.

ITEM 1. REPORTS TO STOCKHOLDERS.

The Report to Shareholders is attached herewith.

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FIRST TRUST VALUE LINE(R) 100 FUND
SEMI-ANNUAL REPORT
FOR THE SIX MONTHS ENDED JUNE 30, 2004
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TABLE OF CONTENTS
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FIRST TRUST VALUE LINE(R) 100 FUND
JUNE 30, 2004

Shareholder Letter .................................................... 1

Portfolio of Investments .............................................. 2

Statement of Assets and Liabilities ................................... 6

Statement of Operations ............................................... 7

Statement of Changes in Net Assets .................................... 8

Financial Highlights .................................................. 9

Notes to Financial Statements ......................................... 10

Dividend Reinvestment Plan ............................................ 13

Proxy Voting Policies and Procedures .................................. 13

HOW TO READ THIS REPORT

This report contains information that can help you evaluate your investment. It
includes details about the First Trust Value Line(R) 100 Fund (the "Fund") and
presents data and analysis that provide insight into the Fund's performance and
investment approach.

By reading the letter from the Fund's President, James A. Bowen, you will obtain
an understanding of how the market environment affected its performance and how
the Fund's performance and characteristics compare to that of relevant market
benchmarks.

It is important to keep in mind that the opinions expressed by Mr. Bowen are
just that: informed opinions. They should not be considered to be promises or
advice. The opinions, like the statistics, cover the period through the date on
the cover of this report. Of course, the risks of investing in the fund are
spelled out in the prospectus.

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SHAREHOLDER LETTER
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FIRST TRUST VALUE LINE(R) 100 FUND
SEMI-ANNUAL REPORT
JUNE 30, 2004

Dear Shareholders:

The First Trust Value Line(R) 100 Fund (the "Fund"), which trades on the AMEX
under the symbol FVL, has had its share of ups and downs, like the stock market,
in 2004. Year-to-date through August 12, the net asset value (NAV) total return
of the Fund was -9.8%, versus -3.4% for the S&P 500 Index. The Fund's market
share price traded at a 9.4% discount to its NAV at the close of August 12, and
its market value total return was -17.7% year-to-date. The Fund's beta has
averaged about 1.3 in 2004, which indicates that the Fund is more volatile than
the S&P 500.

Despite the fact that the S&P 500 has been essentially unchanged in 2004,
considerable progress has been made on the economic front. U.S. gross domestic
product (GDP), which grew by 3.1% in 2003, has accelerated beyond that rate over
the past two calendar quarters. GDP grew by 4.1% in the fourth quarter of 2003
and 3.9% in the first quarter of 2004, according to the Bureau of Economic
Analysis. Chairman Alan Greenspan commented on July 20 that the Federal Reserve
plans to continue on a path towards higher short-term interest rates in an
effort to stave off inflationary pressures. Greenspan believes that the current
expansion is "self-sustaining."

Overall, the economic news was quite encouraging, in our opinion, in the first
half of 2004. In particular, the manufacturing sector, which was hit hard in the
recession of 2001, has made a stellar comeback. The Manufacturers Alliance/MAPI,
based in Arlington, Va., announced in July that its quarterly index predicting
the outlook for manufacturing hit 80 in June - the highest score in the survey's
32 year history. A reading above 50 indicates a rise in manufacturing activity.
Furthermore, the July ISM Index, which measures manufacturing activity,
registered 62.0. It was the ninth consecutive month the index registered above
60. According to CSFB, the ISM Index never recorded a single month above 60
during the 1990s economic boom. Industrial production in June 2004 was 5.6%
higher than in June 2003. The companies in the S&P 500 Index increased capital
expenditures by 4.8% in the first quarter of 2004. It was the first increase
since 2001, when companies boosted spending by 4.8% over the entire year.

With respect to the financial well-being of Americans and Corporate America, as
of the first quarter of 2004, corporate wealth in the U.S. totaled $10.3
trillion, while the cumulative wealth of individuals was $45.2 trillion,
according to BusinessWeek. Both sectors have recouped the losses sustained after
the stock bubble burst in early 2000. Even taking into account the recent
correction in stocks, individual wealth on a cumulative basis is a record $44
trillion. In addition, many U.S. companies are actually flush with cash. The 374
industrialized companies in the S&P 500 Index collectively held $555.6 billion
of cash and short-term investments as of the end of the first quarter of 2004,
according to BusinessWeek. That total is up about $56 billion from the end of
2003, and up more than double the amount at the end of 1999.

Considering the encouraging factors noted above, we believe that FVL can be
positioned as a long-term core growth holding for investors willing to accept a
greater level of risk than the market, as measured by the S&P 500 Index.

Sincerely,

/S/JAMES A. BOWEN
James A. Bowen
President of the First Trust Value Line(R) 100 Fund
August 13, 2004

Page 1

FIRST TRUST VALUE LINE(R) 100 FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 2004 (UNAUDITED)

MARKET
SHARES VALUE
-------------- ------------

COMMON STOCKS - 99.7%

HEALTH CARE EQUIPMENT & SERVICES - 13.0%
78,130 Accredo Health, Inc.* ......................... $ 3,043,163
35,105 Aetna, Inc. ................................... 2,983,925
33,785 Anthem, Inc.* ................................. 3,025,785
53,905 C.R. Bard, Inc. ............................... 3,053,718
78,441 Covance, Inc.* ................................ 3,026,254
97,921 DaVita, Inc.* ................................. 3,018,904
48,155 IDEXX Laboratories, Inc.* ..................... 3,030,876
92,761 IDX Systems Corp.* ............................ 2,958,148
72,605 Laboratory Corp. of America Holdings* ......... 2,882,419
33,979 Quest Diagnostics, Inc. ....................... 2,886,516
58,991 ResMed, Inc.* ................................. 3,006,181
53,850 Stryker Corp. ................................. 2,961,750
33,483 Zimmer Holdings, Inc.* ........................ 2,953,201
----------------
38,830,840
----------------

RETAIL - 12.6%
102,539 American Eagle Outfitters, Inc.* .............. 2,964,403
345,874 Charming Shoppes, Inc.* ....................... 3,088,655
70,595 CVS Corp. ..................................... 2,966,402
65,266 Guitar Center, Inc.* .......................... 2,902,379
32,655 Harman International Industries, Inc. ......... 2,971,605
76,315 J.C. Penny Company, Inc. ...................... 2,881,655
98,345 Landry's Restaurants, Inc. .................... 2,939,532
88,912 PETsMART, Inc. ................................ 2,885,194
210,114 Smart & Final, Inc.* .......................... 2,525,570
68,534 Starbucks Corp.* .............................. 2,979,858
116,472 The Gap, Inc. ................................. 2,824,446
81,986 The Home Depot, Inc. .......................... 2,885,907
48,864 Urban Outfitters, Inc.* ....................... 2,976,306
----------------
37,791,912
----------------

INTERNET SOFTWARE & SERVICES - 9.0%
307,933 1-800-FLOWERS.COM, Inc., Class A* ............. 2,506,575
32,891 eBay, Inc.* ................................... 3,024,328
107,810 eResearch Technology, Inc.* ................... 3,018,680
52,192 Getty Images, Inc.* ........................... 3,131,520
123,526 Macromedia, Inc.* ............................. 3,032,563
488,797 Sapient Corp.* ................................ 2,937,670
70,027 Symantec Corp.* ............................... 3,065,782
140,419 WebEx Communications, Inc.* ................... 3,055,517
85,198 Yahoo!, Inc.* ................................. 3,095,243
----------------
26,867,878
----------------

PHARMACEUTICALS & BIOTECHNOLOGY - 8.0%
48,069 Biogen Idec, Inc.* ............................ 3,040,364
50,603 Celgene Corp.* ................................ 2,897,528
55,692 Cephalon, Inc.* ............................... 3,007,368
63,094 Charles River Laboratories International, Inc.* 3,083,404
53,856 Genentech, Inc.* .............................. 3,026,707
35,573 ImClone Systems, Inc.* ........................ 3,051,808

Page 2 See Notes to Financial Statements.

FIRST TRUST VALUE LINE(R) 100 FUND - (CONTINUED)
PORTFOLIO OF INVESTMENTS
JUNE 30, 2004 (UNAUDITED)

MARKET
SHARES VALUE
-------------- ------------

COMMON STOCKS - (CONTINUED)

PHARMACEUTICALS & BIOTECHNOLOGY - (CONTINUED)
41,628 Invitrogen Corp.* ............................. $ 2,996,800
85,916 Pfizer, Inc. .................................. 2,945,200
----------------
24,049,179
----------------

ELECTRONIC EQUIPMENT & INSTRUMENTS - 7.0%
102,896 Agilent Technologies, Inc.* ................... 3,012,795
111,299 Arrow Electronics, Inc. ....................... 2,985,039
56,760 Flir Systems, Inc.* ........................... 3,116,124
45,405 L-3 Communications Holdings, Inc. ............. 3,033,054
42,385 Rogers Corp.* ................................. 2,962,712
108,922 Thomas & Betts Corp. .......................... 2,965,946
63,995 Waters Corp.* ................................. 3,057,681
----------------
21,133,351
----------------

HOUSEHOLD & PERSONAL PRODUCTS - 5.0%
65,060 Avon Products, Inc. ........................... 3,001,868
102,967 Chattem, Inc.* ................................ 2,972,657
65,266 Church & Dwight Company, Inc. ................. 2,987,878
82,789 Helen of Troy Ltd.* ........................... 3,052,431
120,066 Nu Skin Enterprises, Inc., Class A ............ 3,040,071
----------------
15,054,905
----------------

TELECOMMUNICATION SERVICES - 4.1%
111,216 Nextel Communications, Inc., Class A* ......... 2,965,018
42,864 QUALCOMM, Inc. ................................ 3,128,215
100,211 Telecom Corp. of New Zealand Ltd.,
Sponsored ADR .............................. 2,986,288
107,535 Western Wireless Corp., Class A* .............. 3,108,837
----------------
12,188,358
----------------

FOOD, BEVERAGE & TOBACCO - 4.0%
180,428 Archer-Daniels-Midland Company ................ 3,027,582
139,163 PepsiAmericas, Inc. ........................... 2,955,822
142,517 Tyson Foods, Inc., Class A .................... 2,985,731
32,270 Whole Foods Market, Inc. ...................... 3,080,172
----------------
12,049,307
----------------

ENERGY - 4.0%
112,914 Headwaters, Inc.* ............................. 2,927,860
100,143 Patina Oil & Gas Corp. ........................ 2,991,271
46,880 Schlumberger Ltd. ............................. 2,977,349
104,903 Southwestern Energy Company* .................. 3,007,569
----------------
11,904,049
----------------

CAPITAL GOODS - 3.9%
85,469 Armor Holdings, Inc.* ......................... 2,905,946
51,376 Fisher Scientific International, Inc. ......... 2,966,964
71,534 Potlatch Corp. ................................ 2,978,676
65,527 The Stanley Works ............................. 2,986,720
----------------
11,838,306
----------------

See Notes to Financial Statements.
Page 3

FIRST TRUST VALUE LINE(R) 100 FUND - (CONTINUED)
PORTFOLIO OF INVESTMENTS
JUNE 30, 2004 (UNAUDITED)

MARKET
SHARES VALUE
-------------- ------------

COMMON STOCKS - (CONTINUED)

COMMUNICATIONS EQUIPMENT - 3.1%
164,656 Motorola, Inc. ................................ $ 3,004,972
48,888 Research IN Motion Ltd.* ...................... 3,345,895
101,033 Telefonaktiebolaget LM Ericsson,
Sponsored ADR .............................. 3,022,907
----------------
9,373,774
----------------

SOFTWARE - 3.1%
73,289 Autodesk, Inc. ................................ 3,137,502
62,336 DST Systems, Inc.* ............................ 2,997,738
135,528 Red Hat, Inc.* ................................ 3,113,078
----------------
9,248,318
----------------

SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT - 3.0%
182,883 Fairchild Semiconductor International, Inc.* .. 2,993,795
112,872 Marvell Technology Group Ltd.* ................ 3,013,682
188,598 Pixelworks, Inc.* ............................. 2,889,321
----------------
8,896,798
----------------

CONSUMER DURABLES & APPAREL - 3.0%
65,209 Coach, Inc.* .................................. 2,946,795
325,248 Rent-Way, Inc.* ............................... 2,927,232
42,544 The Toro Company .............................. 2,981,058
----------------
8,855,085
----------------

MATERIALS - 2.9%
136,200 Brush Engineered Materials, Inc.* ............. 2,574,180
65,716 Eastman Chemical Company ...................... 3,038,051
83,372 Georgia-Pacific Corp. ......................... 3,083,096
----------------
8,695,327
----------------

AUTOMOBILE & COMPONENTS - 2.0%
115,112 Copart, Inc.* ................................. 3,073,491
95,765 Modine Manufacturing Company .................. 3,050,115
----------------
6,123,606
----------------

TRANSPORTATION - 2.0%
79,770 J.B. Hunt Transport Services, Inc. ............ 3,077,526
114,267 Norfolk Southern Corp. ........................ 3,030,361
----------------
6,107,887
----------------

COMMERCIAL SERVICES - 2.0%
64,427 Career Education Corp.* ....................... 2,935,294
146,108 Navigant Consulting, Inc.* .................... 3,132,556
----------------
6,067,850
----------------

INSURANCE - 2.0%
99,036 American Financial Group, Inc. ................ 3,027,531
41,354 American International Group, Inc. ............ 2,947,713
----------------
5,975,244
----------------

See Notes to Financial Statements.

Page 4

FIRST TRUST VALUE LINE(R) 100 FUND - (CONTINUED)
PORTFOLIO OF INVESTMENTS
JUNE 30, 2004 (UNAUDITED)

MARKET
SHARES VALUE
-------------- ------------

COMMON STOCKS - (CONTINUED)

COMMERCIAL SERVICES - 2.0%
33,674 Apollo Group, Inc., Class A* .................. $ 2,973,077
151,342 Korn/Ferry International* ..................... 2,931,495
----------------
5,904,572
----------------

MEDIA - 1.0%
187,302 Radio One, Inc.* .............................. 3,017,435
----------------

HOTELS, RESTAURANTS & LEISURE - 1.0%
61,583 Station Casinos, Inc. ......................... 2,980,617
----------------

COMPUTERS & PERIPHERALS - 1.0%
214,702 Agilysys, Inc. ................................ 2,960,741
----------------

DIVERSIFIED FINANCIALS - 1.0%
262,165 E*TRADE Financial Corp.* ...................... 2,923,140
----------------

TOTAL COMMON STOCKS ........................... 298,838,479
(Cost $266,656,805) ----------------

TOTAL INVESTMENTS - 99.7% ..................... 298,838,479
(Cost $266,656,805)**

NET OTHER ASSETS & LIABILITIES - 0.3% ......... 1,018,776
----------------
NET ASSETS - 100.0% ........................... $ 299,857,255
================

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* Non-income producing security.
** Aggregate cost for federal tax purposes.
ADR American Depository Receipt

See Notes to Financial Statements.
Page 5

STATEMENT OF ASSETS AND LIABILITIES
FIRST TRUST VALUE LINE(R) 100 FUND
JUNE 30, 2004 (UNAUDITED)

ASSETS:
Investments, at value
(See portfolio of investments) (a): ................................................. $ 298,838,479
Cash ................................................................................... 4,110,352
Receivable for investment securities sold .............................................. 430,662
Dividends receivable ................................................................... 68,719
Interest receivable .................................................................... 247
Prepaid expenses ....................................................................... 13,145
--------------
Total Assets 303,461,604
--------------

LIABILITIES:
Payable for investment securities purchased ............................................ 3,230,883
Investment advisory fee payable ........................................................ 156,090
Value Line(R)licensing fee payable ..................................................... 73,604
Audit and legal fees payable ........................................................... 65,302
Payable to administrator ............................................................... 22,490
Trustees' fee payable .................................................................. 14,435
Accrued expenses and other payables .................................................... 41,545
--------------
Total Liabilities ................................................................. 3,604,349
--------------
NET ASSETS ............................................................................. $ 299,857,255
==============

------------------------------------------------------------
(a) Investments, at cost ............................................................... $ 266,656,805
==============

NET ASSETS CONSIST OF:
Accumulated net investment loss ........................................................ $ (808,829)
Accumulated net realized gain on investments sold ...................................... 18,458,458
Net unrealized appreciation of investments ............................................. 32,181,674
Par value .............................................................................. 174,900
Paid-in capital ........................................................................ 249,851,052
--------------
Total Net Assets .................................................................. $ 299,857,255
==============
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share) ................... $ 17.14
==============
Number of Common Shares outstanding .................................................... 17,490,000
==============

Page 6 See Notes to Financial Statements.

STATEMENT OF OPERATIONS
FIRST TRUST VALUE LINE(R) 100 FUND
FOR THE SIX MONTHS ENDED JUNE 30, 2004 (UNAUDITED)

INVESTMENT INCOME:
Dividends ........................................................................................ $ 572,998
Interest ......................................................................................... 2,533
------------
Total investment income ..................................................................... 575,531
------------
EXPENSES:
Investment advisory fee .......................................................................... 951,228
Value Line(R)licensing fee ....................................................................... 148,908
Administration fee ............................................................................... 136,965
Trustees' fees and expenses ...................................................................... 29,339
Custodian fees ................................................................................... 24,084
Transfer agent fees .............................................................................. 18,560
Audit and legal fees ............................................................................. 16,568
Other ............................................................................................ 58,708
------------
Total expenses .............................................................................. 1,384,360
------------
NET INVESTMENT LOSS .............................................................................. (808,829)
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain from investments sold during the period ........................................ 13,734,267
Change in unrealized appreciation/(depreciation) of investments during the period ................ (3,533,039)
------------
Net realized and unrealized gain on investments .................................................. 10,201,228
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................................. $ 9,392,399
============

See Notes to Financial Statements. Page 7

STATEMENT OF CHANGES IN NET ASSETS
FIRST TRUST VALUE LINE(R) 100 FUND

SIX MONTHS
ENDED PERIOD
6/30/04 ENDED
(UNAUDITED) 12/31/03*
---------------- --------------

Net investment loss $ (808,829) $ (1,085,058)
Net realized gain from investments sold during the period ............................... 13,734,267 5,809,249
Change in unrealized appreciation/(depreciation) of investments during the period ....... (3,533,039) 35,714,713
---------------- --------------
Net increase in net assets resulting from operations .................................... 9,392,399 40,438,904
---------------- --------------
CAPTIAL TRANSACTIONS:
Net proceeds from sale of 17,490,000 shares of Common Shares ............................ -- 250,024,791
Offering costs .......................................................................... 1,161 --
---------------- --------------
Net increase in net assets for the period ............................................... 9,393,560 290,463,695

NET ASSETS:
Beginning of period ..................................................................... 290,463,695 --
---------------- --------------
End of period ........................................................................... $ 299,857,255 $ 290,463,695
================ ==============

Accumulated net investment loss at end of period ........................................ $ (808,829) $ --
================ ==============

--------------------------------------------------
* The Fund commenced operations on June 12, 2003.

Page 8 See Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

FIRST TRUST VALUE LINE(R) 100 FUND
FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD.

SIX MONTHS
ENDED PERIOD
6/30/04 ENDED
(UNAUDITED) 12/31/03*
------------ -----------

Net asset value, beginning of period .......................................... $ 16.61 $ 14.33
------------ -----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ........................................................... (0.05) (0.06)
Net realized and unrealized gain on investments ............................... 0.58 2.37
------------ -----------
Total from investment operations .............................................. 0.53 2.31
------------ -----------
Common shares offering costs charged to paid-in capital ....................... -- (0.03)
------------ -----------
Net asset value, end of period ................................................ $ 17.14 $ 16.61
============ ===========
Market Value, end of period ................................................... $ 15.42 $ 16.49
============ ===========
TOTAL RETURN BASED ON NET ASSET VALUE (A)+ .................................... 3.19% 15.91%
============ ===========
TOTAL RETURN BASED ON MARKET VALUE (B)+ ....................................... (6.49)% 9.93%
============ ===========

RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .......................................... $ 299,857 $ 290,464
Ratio of operating expenses to average net assets ............................. 0.94% ** 1.02% **
Ratio of net investment loss to average net assets ............................ (0.55)% ** (0.75)% **
Portfolio turnover rate ....................................................... 116.19% 143.53%

--------------------------------------------------

* The Fund commenced operations on June 12, 2003.
** Annualized.
(a) Total return on net asset value is the combination of reinvested dividend
income and capital gains distributions, at prices obtained by the Dividend
Reinvestment Plan, if any, and changes in net asset value per share.
(b) Total return on market value is the combination of reinvested dividend
income and capital gains distributions, at prices obtained by the Dividend
Reinvestment Plan, if any, and changes in stock price per share, all based
on market price.
+ Total return is not annualized for periods less than one year and does not
reflect sales load.

See Notes to Financial Statements. Page 9

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NOTES TO FINANCIAL STATEMENTS
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FIRST TRUST VALUE LINE(R) 100 FUND
JUNE 30, 2004 (UNAUDITED)

1. FUND DESCRIPTION

First Trust Value Line(R) 100 Fund (the "Fund") is a diversified closed-end
management investment company organized as a Massachusetts business trust on
April 18, 2003 and is registered with the Securities and Exchange Commission
("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act").

The Fund's investment objective is to provide capital appreciation. The Fund
seeks to outperform the Standard & Poor's 500 Composite Stock Price Index (the
"S&P 500 Index") by adhering to a disciplined strategy of investing in a
diversified portfolio of the 100 common stocks ranked #1 in Value Line's(R)
Timeliness(TM) Ranking System. There can be no assurance that the Fund's
investment objective will be achieved.

The Value Line(R) Timeliness(TM) Ranking System was introduced in its present
form in 1965. Each week, Value Line(R) screens a wide array of data, using a
series of proprietary calculations to rank each of the approximately 1,700
stocks in the Value Line(R) universe from #1 (highest) to #5 (lowest) based on
their expected price performance relative to the other stocks in the universe
over the following 6 to 12 months. At any one time, only 100 stocks are ranked
#1 in the Value Line(R) Timeliness(TM) Ranking System.

The Fund invests substantially all, but in no event less than 80%, of its net
assets in the stocks that are ranked #1 in the Value Line(R) Timeliness(TM)
Ranking System. Each week, the Fund will make portfolio adjustments to match the
changes made to the #1 ranked stocks by Value Line(R). The Fund also rebalances
its holdings on a quarterly basis so that each stock is equally weighted on the
rebalancing date.
2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual results could differ from those estimates.

PORTFOLIO VALUATION:

The Fund determines the net asset value ("NAV") of its shares daily, as of the
close of regular session trading on the New York Stock Exchange ("NYSE"),
normally 4:00 p.m. Eastern time on each day the NYSE is open for trading. The
NAV is computed by dividing the value of all assets of the Fund (including
accrued interest and dividends), less all liabilities (including accrued
expenses and dividends declared but unpaid), by the total number of shares
outstanding.

The Fund's investments are valued at market value or, in the absence of market
value with respect to any portfolio securities, at fair value as determined by,
or under the direction of the Fund's Board of Trustees. Portfolio securities
listed on any exchange other than the NASDAQ National Market ("NASDAQ") are
valued at the last sale price on the business day of which such value is being
determined. If there has been no sale on such day, the securities are valued at
the mean of the most recent bid and asked prices on such day. Securities trading
on the NASDAQ are valued at the NASDAQ Official Closing Price as determined by
NASDAQ. Portfolio securities traded in the over-the-counter market, but
excluding securities trading on the NASDAQ, are valued at the closing bid
prices. Short-term investments that mature in 60 days or less are valued at
amortized cost.

Foreign securities traded outside the United States are generally valued as of
the time their trading is complete, which is usually different from the close of
the NYSE. Occasionally, events affecting the value of such securities may occur
between such times and the close of the NYSE that will not be reflected in the
computation of a Fund's NAV. If events materially affecting the value of such
securities occur during such period, these securities will be valued at their
fair value according to procedures decided upon in good faith by the Fund's
Board of Trustees. All securities and other assets of the Fund initially
expressed in foreign currencies will be converted to U.S. dollars using exchange
rates in effect at the time of valuation.

SECURITIES TRANSACTIONS AND INVESTMENT INCOME:

Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Dividend income is recorded on the ex-dividend date. Interest income is recorded
on the accrual basis.

Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date; interest income is not accrued
until settlement date. The Fund instructs the custodian to segregate assets of
the Fund with a current value at least equal to the amount of its when-issued
purchase commitments.

Page 10

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NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST VALUE LINE(R) 100 FUND
JUNE 30, 2004 (UNAUDITED)

FOREIGN CURRENCY:

The books and records of the Fund are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at the exchange rates prevailing at the end of the period.
Purchases and sales of investment securities and items of income and expense are
translated on the respective dates of such transactions. Unrealized gains and
losses which result from changes in foreign currency exchange rates have been
included in the unrealized appreciation/(depreciation) of investments and net
other assets. Net realized foreign currency gains and losses include the effect
of changes in exchange rates between trade date and settlement date on
investment security transactions, foreign currency transactions and interest and
dividends received. The portion of foreign currency gains and losses related to
fluctuation in exchange rates between the initial purchase trade date and
subsequent sale trade date is included in realized gains and losses on
investment securities sold.

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:

Dividends from net investment income and net realized long-term and short-term
capital gains of the Fund will be paid at least annually or as the Board of
Trustees may determine from time to time. Distributions will automatically be
reinvested into additional Common Shares pursuant to the Fund's Dividend
Reinvestment Plan unless cash distributions are elected by the shareholder.

Distributions from income and capital gains are determined in accordance with
the income tax regulations, which may differ from accounting principles
generally accepted in the United States of America. These differences are
primarily due to differing treatments of income and gains on various investment
securities held by the Fund, timing differences and differing characterization
of distributions made by the Fund.

INCOME TAXES:

The Fund intends to continue to qualify as a regulated investment company by
complying with the requirements under Subchapter M of the Internal Revenue Code
of 1986, as amended, and by distributing substantially all of its net investment
income and net realized gains to shareholders. Accordingly, no provision has
been made for federal or state income taxes.

EXPENSES:

The Fund pays all expenses directly related to its operations. First Trust has
entered into a non-exclusive license agreement with Value Line(R) Publishing,
Inc. which allows for the use by First Trust of the Value Line(R) Timeliness(TM)
Ranking System and certain trademarks and trade names of Value Line(R)
Publishing, Inc. The Fund is a sub-licensee to this license agreement. In
exchange, Value Line(R) Publishing, Inc. will receive an annual fee, payable on
a quarterly basis, equal to 10 basis points of the Fund's average gross daily
assets during such calendar quarter. This license fee will be paid by the Fund
to First Trust who will in turn pay Value Line(R) Publishing, Inc. The terms of
the license agreement provide that it shall continue in effect for a term of one
year and will be automatically renewed for successive one year terms unless
either party elects not to renew the agreement.

ORGANIZATIONAL AND OFFERING COSTS:

Organization costs consist of costs incurred to establish the company and enable
it to legally do business. These costs include incorporation fees, legal
services pertaining to the organization of the business and audit fees relating
to the initial registration and auditing the initial seed capital statement,
among other fees. Offering costs consist of legal fees pertaining to the Fund's
shares offered for sale, registration fees, underwriting fees, and printing of
initial prospectus, among other fees. First Trust has paid all organizational
expenses and all offering costs of the Fund (other than sales load) that exceed
$0.03 per Common Share. The Fund's share of Common Share offering costs,
$519,469, were recorded as a reduction of the proceeds from the sale of Common
Shares at December 31, 2003.

3. INVESTMENT ADVISORY FEE AND OTHER AFFILIATED TRANSACTIONS

First Trust Advisors L.P. is a limited partnership with one limited partner,
Grace Partners of DuPage L.P., and one general partner, The Charger Corporation.
First Trust serves as investment advisor to the Fund pursuant to an Investment
Management Agreement. First Trust is responsible for implementing the Fund's
overall investment strategy, including the allocation and periodic reallocation
of the portion of the Fund's assets to be invested in common stocks, and certain
administrative services necessary for the management of the Fund. For its
investment management services, First Trust is entitled to a monthly fee
calculated at an annual rate of 0.65% of the Fund's average daily net assets.

PFPC Inc. ("PFPC"), an indirect, majority-owned subsidiary of The PNC Financial
Services Group Inc., serves as the Fund's Administrator and Transfer Agent in
accordance with certain fee arrangements. PFPC Trust Company, an indirect,
majority-owned subsidiary of The PNC Financial Services Group Inc., serves as
the Fund's Custodian in accordance with certain fee arrangements.
Page 11

Effective June 7, 2004, the Trustees of the Fund approved a revised compensation
plan. Under the revised plan, the Fund pays each Trustee who is not an officer
or employee of First Trust or any of their affiliates an annual retainer of
$10,000 which includes compensation for all regular quarterly board meetings and
regular committee meetings. No additional meeting fees are paid in connection
with regular quarterly board meetings or regular committee meetings. Additional
fees of $1,000 and $500 are paid to non-interested Trustees for special board
meetings and non-regular committee meetings, respectively. These additional fees
are shared by the funds in the First Trust fund complex that participate in the
particular meeting and are not per fund fees. Trustees are also reimbursed for
travel and out-of-pocket expenses in connection with all meetings. The Trustees
adopted the revised plan because the increase in the number of funds in the
First Trust complex had the effect of rapidly increasing their compensation
under the previous arrangements. Prior to June 7, 2004, the Fund paid each
Trustee who was not an officer or employee of First Trust or any of their
affiliates $10,000 per annum plus $1,000 per regularly scheduled meeting
attended, $500 per committee meeting attended and reimbursement for travel and
out-of-pocket expenses.

4. PURCHASES AND SALES OF SECURITIES

Cost of purchases and proceeds from sales of investment securities, excluding
short-term investments, for the six months ended June 30, 2004, aggregated
amounts were $340,782,546 and $341,899,764, respectively.

As of June 30, 2004, the aggregate gross unrealized appreciation for all
securities, in which there was an excess of value over tax cost, was $36,442,904
and the aggregate gross unrealized depreciation for all securities, in which
there was an excess of tax cost over value, was $4,261,230.

5. COMMON STOCK

As of June 30, 2004, 17,490,000 of $0.01 par value Common Shares were issued. An
unlimited number of Common Shares has been authorized under the Fund's Dividend
Reinvestment Plan.

During the six months ended June 30, 2004, it was determined that actual
offering costs from the initial public offering of the Fund's Common Shares in
June 2003 were less than the estimated 2003 offering costs by $1,161. Therefore,
paid-in capital in excess of par value of Common Shares has been increased by
this amount.

6. SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS

The Annual Meeting of Shareholders of the Fund was held on April 19, 2004.
At the Annual Meeting, the Fund's Board of Trustees, consisting of
James A. Bowen, Niel B. Nielson, Thomas R. Kadlec, Richard E. Erickson and
David M. Oster, was elected to serve an additional one year term. The number of
votes cast for each Trustee was 14,150,919, the number of votes withheld for
each Trustee was 59,463 and the number of abstentions was 3,279,618.

Page 12

--------------------------------------------------------------------------------
ADDITIONAL INFORMATION - (UNAUDITED)
--------------------------------------------------------------------------------
FIRST TRUST VALUE LINE(R) 100 FUND
JUNE 30, 2004

DIVIDEND REINVESTMENT PLAN

If your Common Shares are registered directly with the Fund or if you hold your
Common Shares with a brokerage firm that participates in the Fund's Dividend
Reinvestment Plan (the "Plan"), unless you elect to receive cash distributions,
all dividends, including any capital gain distributions, on your Common Shares
will be automatically reinvested by the Plan Agent, PFPC Inc., in additional
Common Shares under the Plan. If you elect to receive cash distributions, you
will receive all distributions in cash paid by check mailed directly to you by
PFPC Inc., as dividend paying agent.

If you decide to participate in the Plan, the number of Common Shares you will
receive will be determined as follows:

(1) If the Common Shares are trading at or above net asset value at the time
of valuation, the Fund will issue new shares at a price equal to the greater of
(i) net asset value per Common Share on that date or (ii) 95% of the market
price on that date.

(2) If Common Shares are trading below net asset value at the time of
valuation, the Plan Agent will receive the dividend or distribution in cash and
will purchase Common Shares in the open market, on the American Stock Exchange
or elsewhere, for the participants' accounts. It is possible that the market
price for the Common Shares may increase before the Plan Agent has completed its
purchases. Therefore, the average purchase price per share paid by the Plan
Agent may exceed the market price at the time of valuation, resulting in the
purchase of fewer shares than if the dividend or distribution had been paid in
Common Shares issued by the Fund. The Plan Agent will use all dividends and
distributions received in cash to purchase Common Shares in the open market
within 30 days of the valuation date except where temporary curtailment or
suspension of purchases is necessary to comply with federal securities laws.
Interest will not be paid on any uninvested cash payments.

You may withdraw from the Plan at any time by giving written notice to the Plan
Agent, or by telephone in accordance with such reasonable requirements as the
Plan Agent and Fund may agree upon. If you withdraw or the Plan is terminated,
you will receive a certificate for each whole share in your account under the
Plan and you will receive a cash payment for any fraction of a share in your
account. If you wish, the Plan Agent will sell your shares and send you the
proceeds, minus brokerage commissions.

The Plan Agent maintains all shareholders' accounts in the Plan and gives
written confirmation of all transactions in the accounts, including information
you may need for tax records. Common Shares in your account will be held by the
Plan Agent in non-certificated form. The Plan Agent will forward to each
participant any proxy solicitation material and will vote any shares so held
only in accordance with proxies returned to the Fund. Any proxy you receive will
include all Common Shares you have received under the Plan.

There is no brokerage charge for reinvestment of your dividends or distributions
in Common Shares. However, all participants will pay a pro rata share of
brokerage commissions incurred by the Plan Agent when it makes open market
purchases.

Automatically reinvesting dividends and distributions does not mean that you do
not have to pay income taxes due upon receiving dividends and distributions.

If you hold your Common Shares with a brokerage firm that does not participate
in the Plan, you will not be able to participate in the Plan and any dividend
reinvestment may be effected on different terms than those described above.
Consult your financial advisor for more information.

The Fund reserves the right to amend or terminate the Plan if in the judgment of
the Board of Trustees the change is warranted. There is no direct service charge
to participants in the Plan; however, the Fund reserves the right to amend the
Plan to include a service charge payable by the participants. Additional
information about the Plan may be obtained by writing PFPC Inc., 301 Bellevue
Parkway, Wilmington, Delaware 19809.

--------------------------------------------------------------------------------
PROXY VOTING POLICIES AND PROCEDURES

A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities and information regarding how
the Fund voted proxies relating to portfolio securities during the most recent
12-month period ended June 30 is available (1) without charge, upon request, by
calling (800) 988-5891, (2) on the Fund's website located at
http://www.ftportfolios.com and (3) on the Securities and Exchange Commission's
website located at http://www.sec.gov, when required to be filed pursuant to
applicable regulations.

Page 13

ITEM 2. CODE OF ETHICS.

Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS

Not yet applicable.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.

REGISTRANT PURCHASES OF EQUITY SECURITIES

------------------------------------------------------------------------------------------------------------------------------------
(C) TOTAL NUMBER OF SHARES (D) MAXIMUM NUMBER (OR APPROXIMATE
(A) TOTAL NUMBER (B) AVERAGE (OR UNITS) PURCHASED AS PART DOLLAR VALUE) OF SHARES (OR UNITS)
OF SHARES (OR PRICE PAID PER OF PUBLICLY ANNOUNCED PLANS THAT MAY YET BE PURCHASED UNDER THE
PERIOD UNITS) PURCHASED SHARE (OR UNIT) OR PROGRAMS PLANS OR PROGRAMS
------------------------------------------------------------------------------------------------------------------------------------

January 1, 0 N/A 0 0
2004-January
31, 2004
------------------------------------------------------------------------------------------------------------------------------------
February 1, 0 N/A 0 0
2004 - February
29, 2004
------------------------------------------------------------------------------------------------------------------------------------
March 1, 2004 - 0 N/A 0 0
March 31, 2004
------------------------------------------------------------------------------------------------------------------------------------
April 1, 2004 - 0 N/A 0 0
April 30, 2004
------------------------------------------------------------------------------------------------------------------------------------
May 1, 2004 --- 0 N/A 0 0
May 31, 2004
------------------------------------------------------------------------------------------------------------------------------------
June 1, 2004, 1,000 15.39 0 0
-- June 30, 2004
------------------------------------------------------------------------------------------------------------------------------------
Total 1,000 15.39 0 0
------------------------------------------------------------------------------------------------------------------------------------

ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's board of directors, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR
240.14a-101), or this Item.

ITEM 10. CONTROLS AND PROCEDURES.

(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).

(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's last fiscal
half-year (the registrant's second fiscal half-year in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial
reporting.

ITEM 11. EXHIBITS.

(a)(1) Not applicable.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act
and Section 302 of the Sarbanes-Oxley Act of 2002 are attached
hereto.

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(a) under the 1940 Act
and Section 906 of the Sarbanes-Oxley Act of 2002 are attached
hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

(registrant) FIRST TRUST VALUE LINE(R)100 FUND
--------------------------------------------------------------------

By (Signature and Title)* /S/ JAMES A. BOWEN
-------------------------------------------------------
James A. Bowen, Chief Executive Officer
(principal executive officer)

Date SEPTEMBER 1, 2004
----------------------------------------------------------------------------

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

By (Signature and Title)* /S/ JAMES A. BOWEN
-------------------------------------------------------
James A. Bowen, Chief Executive Officer
(principal executive officer)

Date SEPTEMBER 1, 2004
----------------------------------------------------------------------------

By (Signature and Title)* /S/ MARK R. BRADLEY
-------------------------------------------------------
Mark R. Bradley, Chief Financial Officer
(principal financial officer)

Date SEPTEMBER 1, 2004
----------------------------------------------------------------------------

* Print the name and title of each signing officer under his or her signature.