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: AUGUST 31, 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
AUGUST 31, 2006 (UNAUDITED)
MARKET
SHARES VALUE
---------- -----------
COMMON STOCKS - 99.4%
AEROSPACE & DEFENSE - 1.3%
39,808 Raytheon Company ............................ $ 1,879,336
-------------
AIRLINES - 1.3%
111,003 Southwest Airlines Company .................. 1,922,572
-------------
AUTOMOBILE COMPONENTS - 0.4%
84,192 Ballard Power Systems, Inc.* ................ 519,465
-------------
AUTOMOBILES - 2.5%
61,923 General Motors Corp. ........................ 1,806,913
30,025 Harley-Davidson, Inc. ....................... 1,756,763
-------------
3,563,676
-------------
BIOTECHNOLOGY - 0.8%
37,230 Applera Corp. - Celera Genomics Group* ...... 518,242
52,814 Millennium Pharmaceuticals, Inc.* ........... 573,560
-------------
1,091,802
-------------
CAPITAL MARKETS - 2.2%
13,571 Bear Stearns Companies (The), Inc. .......... 1,768,980
13,647 Federated Investors, Inc., Class B .......... 456,902
30,167 Knight Capital Group, Inc., Class A* ........ 526,716
8,789 SEI Investments Company ..................... 448,591
-------------
3,201,189
-------------
CHEMICALS - 0.7%
13,246 OM Group, Inc.* ............................. 529,840
6,315 Sigma-Aldrich Corp. ......................... 458,658
-------------
988,498
-------------
COMMERCIAL SERVICES & SUPPLIES - 0.4%
25,660 Korn/Ferry International* ................... 523,977
-------------
COMMUNICATIONS EQUIPMENT - 1.9%
18,175 CommScope, Inc.* ............................ 530,892
75,975 Motorola, Inc. .............................. 1,776,296
135,952 Sycamore Networks, Inc.* .................... 498,944
-------------
2,806,132
-------------
COMPUTERS & PERIPHERALS - 0.3%
25,803 Western Digital Corp.* ...................... 472,195
-------------
CONSTRUCTION & ENGINEERING - 0.3%
9,107 Granite Construction, Inc. .................. 488,591
-------------
DIVERSIFIED FINANCIAL SERVICES - 1.3%
41,523 JPMorgan Chase & Company .................... 1,895,940
-------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 3.3%
61,781 AT&T, Inc. .................................. 1,923,243
36,150 BT Group PLC, Sponsored ADR ................. 1,701,219
14,545 CenturyTel, Inc. ............................ 579,182
107,794 Cincinnati Bell, Inc.* ...................... 544,360
-------------
4,748,004
-------------
See Notes to Quarterly Portfolio of Investments. Page 1
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2006 (UNAUDITED)
MARKET
SHARES VALUE
---------- -----------
COMMON STOCKS - CONTINUED
ELECTRIC UTILITIES - 6.9%
20,980 Cleco Corp. ................................. $ 523,661
20,480 Empire District Electric (The) Company ...... 462,848
33,581 FirstEnergy Corp. ........................... 1,916,132
43,134 FPL Group, Inc. ............................. 1,917,306
13,559 IDACORP, Inc. ............................... 520,937
15,868 Otter Tail Corp. ............................ 478,420
12,605 Pinnacle West Capital Corp. ................. 579,074
42,773 Progress Energy, Inc. ....................... 1,896,127
39,593 Sierra Pacific Resources* ................... 583,997
14,401 UIL Holdings Corp. .......................... 526,213
23,835 Westar Energy, Inc. ......................... 581,336
-------------
9,986,051
-------------
ELECTRICAL EQUIPMENT - 0.8%
15,952 Belden CDT, Inc. ............................ 570,124
24,400 II-VI, Inc.* ................................ 514,108
-------------
1,084,232
-------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.5%
7,914 CDW Corp. ................................... 461,386
20,463 FLIR Systems, Inc.* ......................... 566,825
167,400 Sanmina-SCI Corp.* .......................... 567,486
41,217 Vishay Intertechnology, Inc.* ............... 577,450
-------------
2,173,147
-------------
ENERGY EQUIPMENT & SERVICES - 3.0%
23,365 Baker Hughes, Inc. .......................... 1,663,121
48,478 BJ Services Company ......................... 1,663,280
6,932 Core Laboratories N.V.* ..................... 508,601
53,729 Input/Output, Inc.* ......................... 535,678
-------------
4,370,680
-------------
FOOD & STAPLES RETAILING - 1.7%
76,105 Kroger (The) Company ........................ 1,812,060
129,820 Rite Aid Corp.* ............................. 563,419
-------------
2,375,479
-------------
FOOD PRODUCTS - 4.0%
46,865 Campbell Soup Company ....................... 1,760,718
12,031 Hormel Foods Corp. .......................... 440,936
57,530 Kraft Foods, Inc., Class A .................. 1,950,842
12,042 Lancaster Colony Corp. ...................... 531,534
10,559 Ralcorp Holdings, Inc.* ..................... 522,354
12,661 Smucker, J.M. (The) Company ................. 615,704
-------------
5,822,088
-------------
GAS UTILITIES - 1.4%
10,864 Energen Corp. ............................... 474,105
14,752 ONEOK, Inc. ................................. 564,559
5,178 Questar Corp. ............................... 448,104
15,427 Southwest Gas Corp. ......................... 519,890
-------------
2,006,658
-------------
Page 2 See Notes to Quarterly Portfolio of Investments.
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2006 (UNAUDITED)
MARKET
SHARES VALUE
---------- -----------
COMMON STOCKS - CONTINUED
HEALTH CARE PROVIDERS & SERVICES - 0.7%
16,944 IMS Health, Inc. ............................ $ 462,402
13,474 Triad Hospitals, Inc.* ...................... 593,664
-------------
1,056,066
-------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.4%
26,316 Immucor, Inc.* .............................. 546,583
-------------
HOTELS, RESTAURANTS & LEISURE - 1.5%
19,162 Bob Evans Farms, Inc. ....................... 543,051
14,187 CBRL Group, Inc. ............................ 536,836
11,014 Jack in the Box, Inc.* ...................... 528,452
15,290 Papa John's International, Inc.* ............ 519,860
-------------
2,128,199
-------------
HOUSEHOLD DURABLES - 2.4%
22,510 American Greetings Corp., Class A ........... 551,945
39,265 Garmin Ltd. ................................. 1,836,031
33,029 Tempur-Pedic International, Inc.* ........... 530,115
21,022 The Yankee Candle Company, Inc. ............. 543,419
-------------
3,461,510
-------------
HOUSEHOLD PRODUCTS - 0.3%
7,207 Energizer Holdings, Inc.* ................... 481,860
-------------
INDEPENDENT POWER PRODUCERS
& ENERGY TRADERS - 1.3%
27,355 TXU Corp. ................................... 1,811,175
-------------
INDUSTRIAL CONGLOMERATES - 0.4%
6,115 Sequa Corp., Class A* ....................... 561,357
-------------
INSURANCE - 6.1%
22,282 Ambac Financial Group, Inc. ................. 1,929,398
597 Berkshire Hathaway, Inc., Class B* .......... 1,912,490
40,735 Cincinnati Financial Corp. .................. 1,900,695
31,347 Lincoln National Corp. ...................... 1,902,763
26,967 Old Republic International Corp. ............ 563,610
11,099 Reinsurance Group of America, Inc. .......... 573,596
-------------
8,782,552
-------------
INTERNET SOFTWARE & SERVICES - 1.1%
11,663 Akamai Technologies, Inc.* .................. 457,190
50,814 RealNetworks, Inc.* ......................... 560,478
14,040 WebEx Communications Inc.* .................. 501,228
-------------
1,518,896
-------------
INTERNET & CATALOG RETAIL - 0.4%
15,898 Priceline.com, Inc.* ........................ 530,834
-------------
IT SERVICES - 1.9%
40,428 Infosys Technologies Ltd., Sponsored ADR .... 1,813,196
37,149 MPS Group, Inc.* ............................ 522,315
20,148 Total System Services, Inc. ................. 449,099
-------------
2,784,610
-------------
See Notes to Quarterly Portfolio of Investments. Page 3
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2006 (UNAUDITED)
MARKET
SHARES VALUE
---------- -----------
COMMON STOCKS - CONTINUED
LEISURE EQUIPMENT & PRODUCTS - 1.4%
39,243 Callaway Golf Company ....................... $ 526,249
25,061 Marvel Entertainment, Inc.* ................. 537,308
25,262 Mattel, Inc. ................................ 475,936
13,740 Polaris Industries, Inc. .................... 523,494
-------------
2,062,987
-------------
LIFE SCIENCES TOOLS & SERVICES - 0.3%
14,554 Applera Corp. - Applied Biosystems Group .... 446,080
-------------
MACHINERY - 1.9%
7,972 Lincoln Electric Holdings, Inc. ............. 438,699
31,241 PACCAR, Inc. ................................ 1,707,945
10,765 SPX Corp. ................................... 568,392
-------------
2,715,036
-------------
MEDIA - 2.1%
18,067 Catalina Marketing Corp. .................... 517,620
17,891 Scholastic Corp* ............................ 537,803
115,200 Time Warner, Inc. ........................... 1,914,624
-------------
2,970,047
-------------
METALS & MINING - 2.3%
34,704 Nucor Corp. ................................. 1,695,984
24,475 Teck Cominco Ltd., Class B .................. 1,629,748
-------------
3,325,732
-------------
MULTI-UTILITIES - 6.7%
22,064 Avista Corp. ................................ 534,831
9,611 CH Energy Group, Inc. ....................... 472,092
41,523 Consolidated Edison, Inc. ................... 1,918,363
62,704 Duke Energy Corp. ........................... 1,881,120
23,169 Energy East Corp. ........................... 561,848
15,789 OGE Energy Corp. ............................ 587,982
20,505 PNM Resources Inc. .......................... 587,878
14,084 SCANA Corp. ................................. 582,373
13,528 Wisconsin Energy Corp. ...................... 581,704
90,569 Xcel Energy, Inc. ........................... 1,883,835
-------------
9,592,026
-------------
MULTILINE RETAIL - 0.4%
17,540 Dillard's Inc., Class A ..................... 546,897
-------------
OIL, GAS & CONSUMABLE FUELS - 13.9%
8,488 Cabot Oil & Gas Corp. ....................... 433,397
28,223 ConocoPhillips .............................. 1,790,185
35,078 EnCana Corp. ................................ 1,850,014
25,511 Exxon Mobil Corp. ........................... 1,726,329
13,279 Frontier Oil Corp. .......................... 434,223
10,910 Frontline Ltd. .............................. 445,019
38,345 Hess Corp. .................................. 1,755,434
9,554 Holly Corp. ................................. 437,764
46,134 Imperial Oil Ltd. ........................... 1,742,481
Page 4 See Notes to Quarterly Portfolio of Investments.
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2006 (UNAUDITED)
MARKET
SHARES VALUE
---------- -----------
COMMON STOCKS - CONTINUED
OIL, GAS & CONSUMABLE FUELS - (CONTINUED)
21,233 Marathon Oil Corp. .......................... $ 1,772,956
8,796 Overseas Shipholding Group, Inc. ............ 586,693
19,100 Petroleo Brasileiro S.A., ADR ............... 1,712,506
22,140 Suncor Energy, Inc. ......................... 1,717,621
22,704 Sunoco, Inc. ................................ 1,632,645
60,245 TransCanada Corp. ........................... 1,959,167
-------------
19,996,434
-------------
PHARMACEUTICALS - 4.1%
13,627 Endo Pharmaceuticals Holdings, Inc.* ........ 450,100
36,982 Forest Laboratories, Inc.* .................. 1,848,360
27,606 Johnson & Johnson ........................... 1,785,004
44,716 Merck & Company, Inc. ....................... 1,813,234
-------------
5,896,698
-------------
REAL ESTATE INVESTMENT TRUSTS (REITS) - 1.8%
36,346 Archstone-Smith Trust ....................... 1,932,880
21,386 New Plan Excel Realty Trust ................. 590,040
-------------
2,522,920
-------------
SEMICONDUCTORS
& SEMICONDUCTOR EQUIPMENT - 6.5%
184,713 Applied Micro Circuits Corp.* ............... 504,266
107,614 Atmel Corp.* ................................ 620,933
24,352 Intersil Corp., Class A ..................... 617,323
77,134 Lattice Semiconductor Corp.* ................ 564,621
115,907 Micron Technology, Inc.* .................... 2,002,873
25,122 MKS Instruments, Inc.* ...................... 524,799
28,483 OmniVision Technologies, Inc.* .............. 472,818
190,427 Taiwan Semiconductor Manufacturing
Company Ltd., Sponsored ADR ............... 1,772,875
54,508 Texas Instruments, Inc. ..................... 1,776,416
30,615 Zoran Corp.* ................................ 545,559
-------------
9,402,483
-------------
SPECIALTY RETAIL - 4.8%
20,390 Aeropostale, Inc.* .......................... 517,906
12,243 American Eagle Outfitters, Inc. ............. 472,947
23,592 bebe Stores, Inc. ........................... 525,630
18,402 Christopher & Banks Corp. ................... 448,089
24,856 Dress Barn (The), Inc.* ..................... 438,708
68,923 Limited Brands, Inc. ........................ 1,773,389
12,562 Men's Wearhouse (The), Inc. ................. 445,323
9,052 Sherwin-Williams (The) Company .............. 467,445
65,806 TJX Companies (The), Inc. ................... 1,760,311
-------------
6,849,748
-------------
TEXTILES, APPAREL & LUXURY GOODS - 0.3%
9,494 Gildan Activewear Inc.* ..................... 474,320
-------------
See Notes to Quarterly Portfolio of Investments. Page 5
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2006 (UNAUDITED)
MARKET
SHARES VALUE
---------- -----------
COMMON STOCKS - CONTINUED
WIRELESS TELECOMMUNICATION SERVICES - 0.4%
13,608 Telephone and Data Systems, Inc. ............ $ 577,115
-------------
TOTAL COMMON STOCKS ......................... 142,961,877
-------------
(Cost $139,227,861)
TOTAL INVESTMENTS - 99.4% ................... 142,961,877
(Cost $139,227,861)**
NET OTHER ASSETS & LIABILITIES - 0.6% ....... 804,162
-------------
NET ASSETS - 100.0% ......................... $ 143,766,039
=============
---------------------------------------------------------------------
* 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.
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS (UNAUDITED)
FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND
AUGUST 31, 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.
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.
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.
2. UNREALIZED APPRECIATION/(DEPRECIATION)
As of August 31, 2006, the aggregate gross unrealized appreciation of all
securities in which there was an excess of value over tax cost was $5,868,137
and the aggregate gross unrealized depreciation of all securities in which there
was an excess of value over tax cost was $2,134,121.
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 OCTOBER 24, 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 OCTOBER 24, 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 OCTOBER 24, 2006
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.