First Trust/Confluence Small Cap Value Fund
Portfolio of Investments
January 31, 2020 (Unaudited)
| Shares | Description | Value | ||
| COMMON STOCKS – 88.3% | ||||
| Air Freight & Logistics – 2.5% | ||||
| 10,922 | Forward Air Corp. | $714,845 | ||
| Banks – 5.9% | ||||
| 18,968 | Bank of Marin Bancorp. | 835,730 | ||
| 28,969 | Veritex Holdings, Inc. | 820,402 | ||
| 1,656,132 | ||||
| Capital Markets – 2.6% | ||||
| 4,692 | Morningstar, Inc. | 736,128 | ||
| Chemicals – 2.8% | ||||
| 24,440 | Innophos Holdings, Inc. | 781,102 | ||
| Commercial Services & Supplies – 2.9% | ||||
| 31,392 | Healthcare Services Group, Inc. | 803,635 | ||
| Diversified Consumer Services – 3.8% | ||||
| 24,950 | frontdoor, Inc. (a) | 1,062,371 | ||
| Diversified Financial Services – 6.1% | ||||
| 41,780 | Cannae Holdings, Inc. (a) | 1,698,775 | ||
| Electrical Equipment – 6.6% | ||||
| 24,055 | Allied Motion Technologies, Inc. | 1,102,681 | ||
| 31,838 | Thermon Group Holdings, Inc. (a) | 754,561 | ||
| 1,857,242 | ||||
| Electronic Equipment, Instruments & Components – 3.2% | ||||
| 17,857 | MTS Systems Corp. | 905,171 | ||
| Gas Utilities – 3.3% | ||||
| 12,680 | Northwest Natural Holding Co. | 930,458 | ||
| Health Care Equipment & Supplies – 7.1% | ||||
| 26,617 | Avanos Medical, Inc. (a) | 733,032 | ||
| 22,019 | Natus Medical, Inc. (a) | 688,974 | ||
| 20,941 | Varex Imaging Corp. (a) | 579,019 | ||
| 2,001,025 | ||||
| Health Care Providers & Services – 2.4% | ||||
| 30,755 | Patterson Cos., Inc. | 676,918 | ||
| Hotels, Restaurants & Leisure – 1.1% | ||||
| 4,659 | Nathan’s Famous, Inc. | 307,494 | ||
| Insurance – 6.3% | ||||
| 19,690 | Brown & Brown, Inc. | 884,081 | ||
| 20,819 | James River Group Holdings Ltd. | 893,968 | ||
| 1,778,049 | ||||
| Shares | Description | Value | ||
| IT Services – 4.1% | ||||
| 35,780 | I3 Verticals, Inc., Class A (a) | $1,155,336 | ||
| Machinery – 9.9% | ||||
| 8,341 | John Bean Technologies Corp. | 942,450 | ||
| 10,034 | Kadant, Inc. | 1,069,624 | ||
| 4,921 | RBC Bearings, Inc. (a) | 765,265 | ||
| 2,777,339 | ||||
| Paper & Forest Products – 3.1% | ||||
| 13,010 | Neenah, Inc. | 866,986 | ||
| Pharmaceuticals – 2.4% | ||||
| 27,945 | Phibro Animal Health Corp., Class A | 662,855 | ||
| Professional Services – 2.6% | ||||
| 47,604 | Resources Connection, Inc. | 724,771 | ||
| Real Estate Management & Development – 4.4% | ||||
| 32,255 | RE/MAX Holdings, Inc., Class A | 1,234,722 | ||
| Textiles, Apparel & Luxury Goods – 1.7% | ||||
| 28,174 | Movado Group, Inc. | 485,156 | ||
| Water Utilities – 3.5% | ||||
| 13,533 | SJW Group | 992,646 | ||
| Total Common Stocks | 24,809,156 | |||
| (Cost $22,213,371) | ||||
| REAL ESTATE INVESTMENT TRUSTS – 5.6% | ||||
| Equity Real Estate Investment Trusts – 5.6% | ||||
| 33,508 | Gladstone Commercial Corp. | 714,391 | ||
| 28,188 | Rayonier, Inc. | 856,351 | ||
| Total Real Estate Investment Trusts | 1,570,742 | |||
| (Cost $1,362,533) | ||||
| Total Investments – 93.9% | 26,379,898 | |||
| (Cost $23,575,904) (b) | ||||
| Net Other Assets and Liabilities – 6.1% | 1,725,284 | |||
| Net Assets – 100.0% | $28,105,182 | |||
| (a) | Non-income producing security. |
| (b) | Aggregate cost for financial reporting purposes approximates the aggregate cost for federal income tax purposes. As of January 31, 2020, the aggregate gross unrealized appreciation for all investments in which there was an excess of value over tax cost was $4,763,608 and the aggregate gross unrealized depreciation for all investments in which there was an excess of tax cost over value was $1,959,614. The net unrealized appreciation was $2,803,994. |
First Trust/Confluence Small Cap Value Fund
Portfolio of Investments (Continued)
January 31, 2020 (Unaudited)
Valuation Inputs
The Fund is subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
| • | Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. |
| • | Level 2 – Level 2 inputs are observable inputs, either directly or indirectly. (Quoted prices for similar investments, valuations based on interest rates and yield curves, or valuations derived from observable market data.) |
| • | Level 3 – Level 3 inputs are unobservable inputs that may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment. |
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.
A summary of the inputs used to value the Fund’s investments as of January 31, 2020 is as follows:
| Total Value at 1/31/2020 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
| Common Stocks* | $ 24,809,156 | $ 24,809,156 | $ — | $ — |
| Real Estate Investment Trusts* | 1,570,742 | 1,570,742 | — | — |
| Total Investments | $ 26,379,898 | $ 26,379,898 | $— | $— |
| * | See Portfolio of Investments for industry breakout. |