UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21517
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FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
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(Exact name of registrant as specified in charter)
1001 Warrenville Road, Suite 300
LISLE, IL 60532
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(Address of principal executive offices) (Zip code)
W. Scott Jardine
First Trust Portfolios L.P.
1001 Warrenville Road, Suite 300
LISLE, IL 60532
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(Name and address of agent for service)
Registrant's telephone number, including area code: 630-241-4141
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Date of fiscal year end: MAY 31
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Date of reporting period: AUGUST 31, 2005
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q 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 the
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. SCHEDULE OF INVESTMENTS.
The Schedule(s) of Investments is attached herewith.
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2005 (UNAUDITED)
MARKET
SHARES VALUE
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COMMON STOCKS - 99.1%
AEROSPACE & DEFENSE - 0.7%
226,773 Bombardier Inc. .................................. $ 601,773
13,315 Esterline Technologies Corp.* .................... 581,200
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1,182,973
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AIR FREIGHT & LOGISTICS - 0.4%
16,601 Forward Air Corp. ................................ 585,683
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AIRLINES - 0.4%
16,699 Alaska Air Group, Inc.* .......................... 563,090
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AUTO COMPONENTS - 2.7%
21,432 American Axle & Manufacturing Holdings, Inc. ..... 556,375
30,227 ArvinMeritor, Inc. ............................... 560,711
28,513 Magna International, Inc. ........................ 2,094,565
16,109 Modine Manufacturing Company ..................... 566,392
31,161 Tenneco Automotive Inc.* ......................... 564,949
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4,342,992
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AUTOMOBILES - 0.3%
16,744 Winnebago Industries, Inc. ....................... 510,190
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CAPITAL MARKETS - 0.4%
21,159 Investment Technology Group, Inc.* ............... 580,815
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CHEMICALS - 0.4%
11,422 Ashland Inc. ..................................... 694,343
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COMMERCIAL SERVICES & SUPPLIES - 2.8%
84,412 Allied Waste Industries, Inc.* ................... 673,608
19,823 Kelly Services, Inc. ............................. 579,426
57,065 R.R. Donnelley & Sons Company .................... 2,131,948
13,235 Robert Half International, Inc. .................. 445,755
46,940 Steelcase Inc., Class A .......................... 689,079
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4,519,816
COMMUNICATIONS EQUIPMENT - 2.7%
167,143 3Com Corp.* ...................................... 568,286
89,845 Motorola, Inc. ................................... 1,965,809
54,222 Telefonaktiebolaget LM Ericsson,
Sponsored ADR ................................. 1,892,348
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4,426,443
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COMPUTERS & PERIPHERALS - 0.6%
14,306 Intergraph Corp.* ................................ 583,828
12,958 QLogic Corp.* .................................... 447,828
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1,031,656
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CONSTRUCTION & ENGINEERING - 0.7%
17,211 McDermott International, Inc.* ................... 594,640
51,265 Quanta Services, Inc.* ........................... 615,180
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1,209,820
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See Notes to Quarterly Portfolio of Investments Page 1
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
MARKET
SHARES VALUE
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COMMON STOCKS - CONTINUED
CONSTRUCTION MATERIALS - 0.6%
4,186 Eagle Materials Inc. ............................. $ 471,511
8,386 Florida Rock Industries, Inc. .................... 474,648
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946,159
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DISTRIBUTORS - 0.4%
7,548 Building Materials Holding Corp. ................. 705,587
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DIVERSIFIED CONSUMER SERVICES - 1.4%
12,601 Education Management Corp.* ...................... 426,796
68,428 H&R Block, Inc. .................................. 1,844,135
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2,270,931
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DIVERSIFIED FINANCIAL SERVICES - 1.3%
46,286 Principal Financial Group, Inc. .................. 2,119,899
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ELECTRIC UTILITIES - 0.4%
40,643 Sierra Pacific Resources Corp.* .................. 592,575
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ELECTRONIC EQUIPMENT & INSTRUMENTS - 2.5%
23,367 Arrow Electronics, Inc.* ......................... 696,804
28,450 Avnet, Inc.* ..................................... 712,672
26,598 Electro Scientific Industries, Inc.* ............. 589,944
161,439 Flextronics International Ltd.* .................. 2,108,393
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4,107,813
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ENERGY EQUIPMENT & SERVICES - 3.9%
31,302 BJ Services Company .............................. 1,974,530
8,080 Cal Dive International, Inc.* .................... 504,677
50,622 Global Industry, Ltd* ............................ 697,065
76,759 Input/Output, Inc.* .............................. 663,198
8,292 Lone Star Technologies, Inc.* .................... 458,548
19,841 Rowan Companies, Inc. ............................ 738,085
21,308 TETRA Technologies, Inc.* ........................ 607,264
17,327 Tidewater, Inc. .................................. 771,745
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6,415,112
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FOOD PRODUCTS - 0.6%
15,978 Flowers Foods, Inc. .............................. 435,081
12,552 Lancaster Colony Corp. ........................... 574,254
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1,009,335
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GAS UTILITIES - 0.3%
5,924 Questar Corp. .................................... 462,190
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HEALTH CARE EQUIPMENT & SUPPLIES - 0.4%
11,476 Analogic Corp. ................................... 572,079
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HEALTH CARE PROVIDERS & SERVICES - 0.6%
35,733 eResearch Technology, Inc.* ...................... 551,003
16,160 IMS Health, Inc. ................................. 439,552
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990,555
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Page 2 See Notes to Quarterly Portfolio of Investments
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
MARKET
SHARES VALUE
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COMMON STOCKS - CONTINUED
HOTELS, RESTAURANTS & LEISURE - 1.1%
17,383 California Pizza Kitchen, Inc.* .................. $ 514,363
12,373 Papa John's International, Inc.* ................. 591,677
89,816 Six Flags, Inc.* ................................. 642,184
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1,748,224
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HOUSEHOLD DURABLES - 3.9%
7,766 Garmin Ltd. ...................................... 449,651
41,540 La-Z-Boy Inc. .................................... 597,761
511 NVR, Inc.* ....................................... 452,235
25,317 Pulte Homes, Inc. ................................ 2,182,325
16,274 Standard Pacific Corp. ........................... 714,917
38,668 Toll Brothers, Inc.* ............................. 1,857,997
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6,254,886
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INDEPENDENT POWER PRODUCERS
& ENERGY TRADERS - 0.9%
14,252 Black Hills Corp. ................................ 593,596
260,561 Calpine Corp.* ................................... 799,922
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1,393,518
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INSURANCE - 8.6%
150,250 Aegon N.V. ....................................... 2,123,032
16,304 Allmerica Financial Corp.* ....................... 663,736
71,860 CNA Financial Corp.* ............................. 2,081,784
24,102 Loews Corp. ...................................... 2,113,504
43,221 MetLife, Inc. .................................... 2,116,965
24,291 The Chubb Corp. .................................. 2,112,345
47,259 The St. Paul Travelers Companies, Inc. ........... 2,032,610
35,193 UnumPovident Corp. ............................... 679,929
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13,923,905
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INTERNET & CATALOG RETAIL - 0.4%
26,289 Netflix Inc.* .................................... 566,791
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IT SERVICES - 1.1%
75,446 Accenture Ltd., Class A* ......................... 1,840,882
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LEISURE EQUIPMENT & PRODUCTS - 0.4%
33,193 Oakley, Inc. ..................................... 580,546
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MACHINERY - 2.0%
8,171 Cummins, Inc. .................................... 706,546
5,401 ESCO Technologies Inc.* .......................... 559,976
15,478 Lincoln Electric Holdings, Inc. .................. 583,211
24,749 The Timken Company ............................... 726,878
19,064 Trinity Industries, Inc. ......................... 713,565
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3,290,176
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MARINE - 0.5%
32,387 CP Ships Limited ................................. 732,918
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MEDIA - 0.3%
38,828 Radio One, Inc., Class D* ........................ 542,815
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See Notes to Quarterly Portfolio of Investments Page 3
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
MARKET
SHARES VALUE
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COMMON STOCKS - CONTINUED
METALS & MINING - 6.7%
15,348 Allegheny Technologies, Inc. ..................... $ 423,912
5,863 Cleveland-Cliffs, Inc. ........................... 416,742
45,224 Freeport-McMoRan Copper & Gold Inc. Class B ...... 1,907,096
51,034 Inco Ltd. ........................................ 2,160,269
42,012 POSCO ............................................ 2,195,127
9,665 Quanex Corp. ..................................... 594,494
11,687 Reliance Steel & Aluminum Company ................ 560,976
69,660 Stillwater Mining Company* ....................... 559,370
54,527 Teck Cominco Ltd., Class B ....................... 2,124,029
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10,942,015
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MULTI-UTILITIES - 0.4%
43,155 CMS Energy Corp.* ................................ 694,796
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OIL, GAS & CONSUMABLE FUELS - 32.9%
24,319 Anadarko Petroleum Corp. ......................... 2,209,868
30,607 Apache Corp. ..................................... 2,192,073
9,263 Berry Petroleum Company, Class A ................. 572,731
28,408 Burlington Resources Inc. ........................ 2,096,226
10,472 Cabot Oil & Gas Corp. ............................ 452,286
41,306 Canadian Natural Resources Ltd. .................. 2,035,147
33,674 ConocoPhillips ................................... 2,220,464
36,315 Devon Energy Corp. ............................... 2,206,863
18,067 Encore Acquisition Company* ...................... 609,400
30,408 EOG Resources, Inc. .............................. 1,940,943
31,815 Exxon Mobil Corp. ................................ 1,905,718
16,039 Forest Oil Corp.* ................................ 720,953
13,740 Frontier Oil Corp. ............................... 503,571
11,077 Holly Corp. ...................................... 624,078
20,355 Imperial Oil Ltd. ................................ 2,065,422
21,568 Kerr-McGee Corp. ................................. 1,898,631
35,207 Marathon Oil Corp. ............................... 2,264,162
34,648 Murphy Oil Corp. ................................. 1,893,513
46,429 Nexen Inc. ....................................... 2,025,697
25,073 Noble Energy, Inc. ............................... 2,209,934
26,685 Occidental Petroleum Corp. ....................... 2,215,656
11,562 Overseas Shipholding Group, Inc. ................. 707,016
72,816 Repsol YPF, S.A., Sponsored ADR .................. 2,152,441
60,375 Shell Canada Ltd. ................................ 1,958,163
29,773 Sunoco, Inc. ..................................... 2,164,497
39,788 Talisman Energy Inc. ............................. 1,948,418
100,011 The Williams Companies, Inc. ..................... 2,244,247
14,736 Total SA, Sponsored ADR .......................... 1,942,794
24,034 Valero Energy Corp. .............................. 2,559,621
11,905 Vintage Petroleum, Inc. .......................... 457,509
9,536 Western Gas Resources, Inc. ...................... 457,728
51,382 XTO Energy, Inc. ................................. 2,045,004
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53,500,774
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Page 4 See Notes to Quarterly Portfolio of Investments
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
MARKET
SHARES VALUE
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COMMON STOCKS - CONTINUED
PAPER & FOREST PRODUCTS - 0.4%
45,450 Glatfelter ....................................... $ 623,120
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PERSONAL PRODUCTS - 1.1%
45,752 The Estee Lauder Companies, Class A .............. 1,847,923
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PHARMACEUTICALS - 0.8%
23,116 Alpharma Inc., Class A ........................... 615,348
48,151 King Pharmaceuticals, Inc.* ...................... 707,820
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1,323,168
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ROAD & RAIL - 1.3%
47,385 CSX Corp. ........................................ 2,081,623
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SEMICONDUCTORS
& SEMICONDUCTOR EQUIPMENT - 3.4%
74,335 Cirrus Logic, Inc.* .............................. 587,246
16,824 Cymer, Inc.* ..................................... 563,604
71,848 Intel Corp. ...................................... 1,847,931
58,811 Texas Instruments, Inc. .......................... 1,921,943
39,178 Zoran Corp* ...................................... 617,445
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5,538,169
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SOFTWARE - 1.4%
82,495 Compuware Corp.* ................................. 747,405
70,871 Parametric Technology Corp.* ..................... 429,478
16,347 THQ Inc.* ........................................ 549,423
22,120 Transaction Systems Architects, Inc.* ............ 592,374
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2,318,680
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SPECIALTY RETAIL - 3.1%
15,643 American Eagle Outfitters, Inc. .................. 447,859
19,704 Autozone, Inc.* .................................. 1,862,028
17,750 Burlington Coat Factory Warehouse Corp. .......... 680,890
47,594 Charming Shoppes, Inc.* .......................... 574,936
18,339 Claire's Stores, Inc. ............................ 430,600
30,871 Payless ShoeSource, Inc.* ........................ 572,348
12,912 Tiffany & Co. .................................... 483,167
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5,051,828
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TEXTILES, APPAREL & LUXURY GOODS - 3.1%
18,863 Kenneth Cole Productions, Inc., Class A .......... 540,425
23,631 Nike Inc., Class B ............................... 1,864,722
12,408 Oxford Industries, Inc. .......................... 578,833
8,982 Polo Ralph Lauren Corp. .......................... 445,058
30,276 Russell Corp. .................................... 550,720
13,303 The Timberland Company, Class A* ................. 438,866
39,277 Tommy Hilfiger Corp.* ............................ 689,311
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5,107,935
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THRIFTS & MORTGAGE FINANCE - 0.4%
16,460 The PMI Group, Inc ............................... 665,972
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TRADING COMPANY & DISTRIBUTORS - 0.4%
16,961 GATX Corp. ....................................... 687,429
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See Notes to Quarterly Portfolio of Investments Page 5
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
MARKET
VALUE
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TOTAL COMMON STOCKS .............................. $161,098,149
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(Cost $142,496,827)
TOTAL INVESTMENTS - 99.1% ........................ 161,098,149
(Cost $142,496,827)**
NET OTHER ASSETS & LIABILITIES - 0.9% ............ 1,516,013
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NET ASSETS - 100.0% .............................. $162,614,162
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* Non-income producing security
** Aggregate cost for federal income tax and financial reporting
purposes
ADR American Depository Receipt
Page 6 See Notes to Quarterly Portfolio of Investments
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Notes to Quarterly Portfolio of Investments (Unaudited)
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FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
AUGUST 31, 2005
1. VALUATION AND INVESTMENT PRACTICES
A. PORTFOLIO VALUATION:
First Trust/Value Line(R) & Ibbotson Equity Allocation Fund (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 according to
procedures adopted by 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 as 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 traded
on the NASDAQ are valued at the NASDAQ Official Closing Price as determined by
NASDAQ. Portfolio securities traded on more than one securities exchange are
valued at the last sale price on the business day as of which such value is
being determined at the close of the exchange representing the principal market
for such securities. Portfolio securities traded in the over-the-counter market,
but excluding securities traded 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 always be reflected
in such securities' value. 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 adopted by the Fund's Board of Trustees. All
securities and other assets of the Fund denominated in foreign currencies will
be converted to U.S. dollars using exchange rates in effect at the time of
valuation.
B. SECURITIES TRANSACTIONS:
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost 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 on such securities
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.
C. 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 net change in unrealized appreciation/(depreciation) of foreign
currencies and net other assets.
2. UNREALIZED APPRECIATION/(DEPRECIATION)
As of August 31, 2005, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was $19,423,895,
and the aggregate gross unrealized depreciation for all securities in which
there was an excess of tax cost over value was $822,573.
Page 7
ITEM 2. 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
quarter that have materially affected, or are reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 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) & IBBOTSON EQUITY ALLOCATION FUND
By (Signature and Title)* /S/ JAMES A. BOWEN
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James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date OCTOBER 26, 2005
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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
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James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date OCTOBER 26, 2005
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By (Signature and Title)* /S/ MARK R. BRADLEY
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Mark R. Bradley, Treasurer, Controller,
Chief Financial Officer and Chief Accounting Officer
(principal financial officer)
Date OCTOBER 26, 2005
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* Print the name and title of each signing officer under his or her signature.