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
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
(Exact name of registrant as specified in charter)
1001 WARRENVILLE ROAD
SUITE 300
LISLE, IL 60532
(Address of principal executive offices) (Zip code)
W. SCOTT JARDINE
FIRST TRUST PORTFOLIOS L.P.
1001 WARRENVILLE ROAD
SUITE 300
LISLE, IL 60532
(Name and address of agent for service)
Registrant's telephone number, including area code: 630-241-4141
Date of fiscal year end: MAY 31
Date of reporting period: FEBRUARY 28, 2006
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, 100 F Street, NE, Washington, DC
20549. 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
FEBRUARY 28, 2006 (UNAUDITED)
MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS - 99.4%
AEROSPACE & DEFENSE - 1.7%
9,706 Ceradyne, Inc.* ................................ $ 590,901
30,427 Northrop Grumman Corp. ......................... 1,950,371
-------------
2,541,272
-------------
AIRLINES - 0.4%
10,350 British Airways PLC, Sponsored ADR* ............ 593,987
-------------
AUTO COMPONENTS - 2.1%
12,625 Keystone Automotive Industries, Inc.* .......... 558,025
27,466 Magna International, Inc. ...................... 2,044,020
24,387 Tenneco Automotive Inc.* ....................... 552,366
-------------
3,154,411
-------------
AUTOMOBILES - 1.7%
35,467 DaimlerChrysler AG ............................. 1,967,354
11,178 Thor Industries, Inc. .......................... 527,602
-------------
2,494,956
-------------
BIOTECHNOLOGY - 1.4%
43,099 Biogen Idec, Inc.* ............................. 2,036,428
-------------
CAPITAL MARKETS - 2.0%
16,473 Eaton Vance Corp. .............................. 464,209
43,805 Knight Capital Group, Inc., Class A* ........... 551,505
14,896 The Bear Stearns Companies, Inc. ............... 2,002,618
-------------
3,018,332
-------------
CHEMICALS - 2.4%
22,578 A. Schulman, Inc. .............................. 529,003
13,943 Albemarle Corp. ................................ 591,880
9,207 Ashland Inc. ................................... 600,941
20,499 Potash Corp. of Saskatchewan, Inc. ............. 1,962,779
-------------
3,684,603
-------------
COMMERCIAL SERVICES & SUPPLIES - 1.5%
58,116 Allied Waste Industries, Inc.* ................. 622,422
15,853 Heidrick & Struggles International, Inc.* ...... 586,561
8,053 HNI Corp. ...................................... 469,409
34,863 Steelcase Inc., Class A ........................ 592,671
-------------
2,271,063
-------------
COMMUNICATIONS EQUIPMENT - 4.1%
130,603 3Com Corp.* .................................... 607,304
146,415 Alcatel SA, Sponsored ADR* ..................... 1,976,603
21,325 Belden CDT Inc. ................................ 549,759
95,324 Cisco Systems, Inc.* ........................... 1,929,358
32,042 Polycom, Inc.* ................................. 622,256
111,726 Sycamore Networks, Inc.* ....................... 521,760
-------------
6,207,040
-------------
See Notes to Quarterly Portfolio of Investments. Page 1
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
FEBRUARY 28, 2006 (UNAUDITED)
MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS - CONTINUED
COMPUTERS & PERIPHERALS - 3.9%
127,199 McDATA Corp., Class A* ......................... $ 562,220
12,369 NCR Corp.* ..................................... 495,873
15,671 Palm, Inc.* .................................... 647,212
68,619 Seagate Technology* ............................ 1,823,207
467,496 Sun Microsystems, Inc.* ........................ 1,949,458
20,349 Western Digital Corp.* ......................... 452,765
-------------
5,930,735
-------------
CONSTRUCTION & ENGINEERING - 0.3%
9,444 McDermott International, Inc.* ................. 486,838
-------------
CONSTRUCTION MATERIALS - 0.6%
8,790 Eagle Materials Inc. ........................... 475,803
8,435 Florida Rock Industries, Inc. .................. 485,940
-------------
961,743
-------------
DIVERSIFIED CONSUMER SERVICES - 0.3%
13,534 Education Management Corp.* .................... 508,878
-------------
DIVERSIFIED FINANCIAL SERVICES - 1.3%
48,817 JPMorgan Chase & Company ....................... 2,008,331
-------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 2.5%
297,678 Qwest Communications International Inc.* ....... 1,881,325
57,842 Verizon Communications, Inc. ................... 1,949,275
-------------
3,830,600
-------------
ELECTRIC UTILITIES - 0.4%
42,822 Sierra Pacific Resources Corp.* ................ 609,785
-------------
ELECTRICAL EQUIPMENT - 2.7%
13,649 Acuity Brands, Inc. ............................ 538,999
17,262 Baldor Electric Company ........................ 556,700
20,017 General Cable Corp.* ........................... 540,459
13,483 Regal-Beloit Corp. ............................. 542,556
26,717 Rockwell Automation, Inc. ...................... 1,821,298
-------------
4,000,012
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 2.2%
37,583 AVX Corp. ...................................... 622,374
15,191 Benchmark Electronics, Inc.* ................... 535,027
18,821 Brightpoint, Inc.* ............................. 532,446
22,912 Orbotech Ltd.* ................................. 545,993
27,646 Paxar Corp.* ................................... 530,250
165,406 Solectron Corp.* ............................... 597,116
-------------
3,363,206
-------------
ENERGY EQUIPMENT & SERVICES - 0.7%
10,282 Lone Star Technologies, Inc.* .................. 511,015
10,870 Tidewater Inc. ................................. 567,958
-------------
1,078,973
-------------
Page 2 See Notes to Quarterly Portfolio of Investments.
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
FEBRUARY 28, 2006 (UNAUDITED)
MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS - CONTINUED
FOOD PRODUCTS - 1.7%
63,702 Archer-Daniels-Midland Company ................. $ 2,020,627
23,000 The Hain Celestial Group, Inc.* ................ 536,820
-------------
2,557,447
-------------
GAS UTILITIES - 0.4%
16,390 Laclede Group Inc. ............................. 552,179
-------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.4%
9,841 Dionex Corp.* .................................. 539,976
-------------
HEALTH CARE PROVIDERS & SERVICES - 0.3%
9,695 LCA-Vision, Inc. ............................... 422,702
-------------
HOTELS, RESTAURANTS & LEISURE - 3.0%
18,583 Bob Evans Farms Inc. ........................... 542,066
32,623 CKE Restaurants, Inc. .......................... 554,917
11,542 Darden Restaurants, Inc. ....................... 484,071
52,223 International Game Technology .................. 1,868,017
16,875 Papa John's International, Inc.* ............... 555,188
50,689 Six Flags, Inc.* ............................... 534,769
-------------
4,539,028
-------------
HOUSEHOLD DURABLES - 1.7%
24,201 Blyth, Inc. .................................... 539,198
60,117 Koninklijke (Royal) Philips Electronics N.V. ... 1,955,005
-------------
2,494,203
-------------
HOUSEHOLD PRODUCTS - 1.2%
30,182 The Clorox Company ............................. 1,839,593
-------------
INDEPENDENT POWER PRODUCERS
& ENERGY TRADERS - 1.3%
69,886 Duke Energy Corp. .............................. 1,984,762
-------------
INSURANCE - 1.8%
121,968 Aegon N.V. ..................................... 2,012,472
13,049 The Hanover Insurance Group, Inc. .............. 632,224
-------------
2,644,696
-------------
INTERNET SOFTWARE & SERVICES - 0.7%
46,552 EarthLink, Inc.* ............................... 461,796
68,418 RealNetworks, Inc.* ............................ 537,765
-------------
999,561
-------------
IT SERVICES - 2.9%
57,713 Accenture Ltd., Class A ........................ 1,884,907
74,442 Electronic Data Systems Corp. .................. 1,987,601
36,318 MPS Group, Inc.* ............................... 549,855
-------------
4,422,363
-------------
LEISURE EQUIPMENT & PRODUCTS - 0.3%
9,521 Polaris Industries, Inc. ....................... 476,526
-------------
See Notes to Quarterly Portfolio of Investments. Page 3
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
FEBRUARY 28, 2006 (UNAUDITED)
MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS - CONTINUED
MACHINERY - 4.8%
14,725 Astec Industries, Inc.* ........................ $ 528,922
25,712 Caterpillar, Inc. .............................. 1,879,033
16,233 CLARCOR, Inc. .................................. 549,487
12,297 Crane Company .................................. 473,312
5,730 Cummins, Inc. .................................. 620,444
11,734 Graco, Inc. .................................... 488,956
6,007 Harsco Corp. ................................... 479,238
11,736 Nordson Corp. .................................. 585,861
8,590 Oshkosh Truck Corp. ............................ 487,311
10,383 The Toro Company ............................... 478,968
11,686 Trinity Industries, Inc. ....................... 619,358
-------------
7,190,890
-------------
MEDIA - 2.9%
66,826 EchoStar Communications Corp., Class A* ........ 1,962,680
124,023 News Corp., Class A ............................ 2,019,094
54,350 Radio One, Inc., Class D* ...................... 453,279
-------------
4,435,053
-------------
METALS & MINING - 8.0%
47,700 AK Steel Holding Corp.* ........................ 529,470
9,506 Allegheny Technologies, Inc. ................... 480,148
19,936 AMCOL International Corp. ...................... 550,433
50,308 BHP Billiton Ltd., Sponsored ADR ............... 1,815,616
13,077 Commercial Metals Company ...................... 592,257
23,619 Nucor Corp. .................................... 2,032,415
13,248 Phelps Dodge Corp. ............................. 1,828,224
7,151 Reliance Steel & Aluminum Company .............. 589,171
19,633 Ryerson Inc. ................................... 495,537
39,237 Stillwater Mining Company* ..................... 510,473
31,267 Teck Cominco Ltd., Class B ..................... 1,954,789
10,882 United States Steel Corp. ...................... 593,069
-------------
11,971,602
-------------
MULTI-UTILITIES - 0.8%
24,083 Energy East Corp. .............................. 603,520
14,804 Wisconsin Energy Corp. ......................... 605,039
-------------
1,208,559
-------------
OIL, GAS & CONSUMABLE FUELS - 13.3%
19,331 Anadarko Petroleum Corp. ....................... 1,916,862
7,430 Berry Petroleum Company, Class A ............... 501,897
20,592 Burlington Resources Inc. ...................... 1,856,987
7,422 CONSOL Energy Inc. ............................. 475,156
25,698 EOG Resources, Inc. ............................ 1,732,045
30,718 Exxon Mobil Corp. .............................. 1,823,728
11,012 Frontier Oil Corp. ............................. 509,305
18,805 Imperial Oil Ltd. .............................. 1,811,298
Page 4 See Notes to Quarterly Portfolio of Investments.
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
FEBRUARY 28, 2006 (UNAUDITED)
MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS - CONTINUED
OIL, GAS & CONSUMABLE FUELS - (CONTINUED)
27,984 Marathon Oil Corp. ............................. $ 1,975,670
21,634 Occidental Petroleum Corp. ..................... 1,980,376
22,064 Petroleo Brasileiro S.A., ADR .................. 1,931,483
52,573 Shell Canada Ltd. .............................. 1,767,160
34,022 Talisman Energy Inc. ........................... 1,786,835
-------------
20,068,802
-------------
PERSONAL PRODUCTS - 2.5%
66,327 Avon Products, Inc. ............................ 1,913,534
48,796 The Estee Lauder Companies, Class A ............ 1,825,946
-------------
3,739,480
-------------
PHARMACEUTICALS - 1.9%
7,423 Barr Pharmaceuticals, Inc.* .................... 498,677
40,487 Forest Laboratories, Inc.* ..................... 1,858,353
31,309 King Pharmaceuticals, Inc.* .................... 508,771
-------------
2,865,801
-------------
REAL ESTATE (REITS) - 0.8%
24,277 New Plan Excel Realty Trust .................... 608,139
13,130 Pennsylvania Real Estate Investment Trust ...... 530,452
-------------
1,138,591
-------------
ROAD & RAIL - 3.0%
12,717 Arkansas Best Corp. ............................ 528,519
36,396 CSX Corp. ...................................... 2,015,610
39,579 Norfolk Southern Corp. ......................... 2,025,653
-------------
4,569,782
-------------
SEMICONDUCTORS
& SEMICONDUCTOR EQUIPMENT - 4.6%
67,819 Cirrus Logic, Inc.* ............................ 514,746
183,064 Conexant Systems, Inc.* ........................ 545,531
20,009 Intersil Corp., Class A ........................ 567,055
10,804 LAM Research Corp.* ............................ 465,652
40,173 NVIDIA Corp.* .................................. 1,893,353
20,817 OmniVision Technologies, Inc.* ................. 530,834
184,979 Taiwan Semiconductor Manufacturing
Company Ltd., Sponsored ADR ................. 1,799,846
35,521 Teradyn Inc.* .................................. 596,398
-------------
6,913,415
-------------
SOFTWARE - 2.4%
46,038 Mentor Graphics Corp.* ......................... 517,007
65,372 Novell, Inc.* .................................. 621,688
38,760 RSA Security Inc.* ............................. 568,997
36,915 SAP AG, Sponsored ADR .......................... 1,886,357
-------------
3,594,049
-------------
See Notes to Quarterly Portfolio of Investments. Page 5
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
FEBRUARY 28, 2006 (UNAUDITED)
MARKET
SHARES VALUE
----------- -------------
COMMON STOCKS - CONTINUED
SPECIALTY RETAIL - 2.6%
15,204 Claire's Stores, Inc. .......................... $ 487,136
14,649 Guess?, Inc.* .................................. 530,147
12,500 The Dress Barn, Inc.* .......................... 539,750
9,162 The Sherwin-Williams Company ................... 417,329
76,150 The TJX Companies, Inc. ........................ 1,864,914
-------------
3,839,276
-------------
TEXTILES, APPAREL & LUXURY GOODS - 2.0%
10,030 Gildan Activewear Inc.* ........................ 500,798
21,937 Nike Inc., Class B ............................. 1,903,694
15,208 Phillips-Van Heusen Corp. ...................... 539,884
-------------
2,944,376
-------------
TOBACCO - 0.3%
12,908 Universal Corp. ................................ 524,968
-------------
TRADING COMPANIES & DISTRIBUTORS - 0.3%
10,640 MSC Industrial Direct Company, Inc., Class A ... 504,017
-------------
WIRELESS TELECOMMUNICATION SERVICES - 1.3%
62,677 American Tower Corp., Class A* ................. 1,995,009
-------------
TOTAL COMMON STOCKS ............................ 149,757,899
-------------
(Cost $141,316,272)
TOTAL INVESTMENTS - 99.4% ...................... 149,757,899
(Cost $141,316,272)**
NET OTHER ASSETS & LIABILITIES - 0.6% .......... 843,914
-------------
NET ASSETS - 100.0% ............................ $ 150,601,813
=============
---------------------------------------------
* Non-income producing security.
** Aggregate cost for federal income tax and financial reporting
purposes.
ADR American Depository Receipt
REIT Real Estate Investment Trust
Page 6 See Notes to Quarterly Portfolio of Investments.
--------------------------------------------------------------------------------
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
FEBRUARY 28, 2006
1. VALUATION AND INVESTMENT PRACTICES
A. PORTFOLIO VALUATION:
The 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 less than 60 days 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 are translated on the respective
dates of such transactions. Net realized foreign currency gains and losses
include the effect of changes in exchange rates between trade date and
settlement date on investment security and foreign currency transactions.
2. UNREALIZED APPRECIATION/(DEPRECIATION)
As of February 28, 2006, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was $10,313,913
and the aggregate gross unrealized depreciation for all securities in which
there was an excess of tax cost over value was $1,872,286.
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
-------------------------------------------------------
James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date APRIL 27, 2006
----------------------------------------------------------------------------
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, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date APRIL 27, 2006
----------------------------------------------------------------------------
By (Signature and Title)* /S/ MARK R. BRADLEY
-------------------------------------------------------
Mark R. Bradley, Treasurer, Controller,
Chief Financial Officer and Chief Accounting Officer
(principal financial officer)
Date APRIL 27, 2006
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.