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 811-09235
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First Defined Portfolio Fund, LLC
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(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
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(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
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(Name and address of agent for service)
registrant's telephone number, including area code: 630-765-8000
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Date of fiscal year end: December 31
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Date of reporting period: December 31, 2012
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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, 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. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
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FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2012
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TABLE OF CONTENTS
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FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012
Shareholder Letter........................................................... 1
Market Overview.............................................................. 2
Performance Summary and Portfolio Components................................. 4
Understanding Your Fund Expenses............................................. 20
Portfolio of Investments..................................................... 21
Statements of Assets and Liabilities......................................... 44
Statements of Operations..................................................... 46
Statements of Changes in Net Assets.......................................... 48
Statements of Changes in Net Assets - Membership Interest Activity........... 50
Financial Highlights......................................................... 52
Notes to Financial Statements................................................ 60
Report of Independent Registered Public Accounting Firm...................... 66
Additional Information....................................................... 67
Board of Trustees and Officers............................................... 68
Privacy Policy............................................................... 70
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This report contains certain forward-looking statements within the meaning of
the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934,
as amended. Forward-looking statements include statements regarding the goals,
beliefs, plans or current expectations of First Trust Advisors L.P. ("First
Trust" or the "Advisor") and its representatives, taking into account the
information currently available to them. Forward-looking statements include all
statements that do not relate solely to current or historical fact. For example,
forward-looking statements include the use of words such as "anticipate,"
"estimate," "intend," "expect," "believe," "plan," "may," "should," "would" or
other words that convey uncertainty of future events or outcomes.
Forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements of
First Defined Portfolio Fund, LLC (the "Registrant") to be materially different
from any future results, performance or achievements expressed or implied by the
forward-looking statements. When evaluating the information included in this
report, you are cautioned not to place undue reliance on these forward-looking
statements, which reflect the judgment of the Advisor and its respective
representatives only as of the date hereof. We undertake no obligation to
publicly revise or update these forward-looking statements to reflect events and
circumstances that arise after the date hereof.
PERFORMANCE AND RISK DISCLOSURE
There is no assurance that any Portfolio (individually called a "Portfolio" and
collectively the "Portfolios") of the Registrant will achieve its investment
objective. Each Portfolio is subject to market risk, which is the possibility
that the market values of securities owned by the Portfolio will decline and
that the value of the Portfolio shares may therefore be less than what you paid
for them. Accordingly, you can lose money by investing in the Portfolios. See
"Risk Considerations" in the Notes to Financial Statements for a discussion of
certain other risks of investing in the Portfolios.
Performance data quoted represents past performance, which is no guarantee of
future results, and current performance may be lower or higher than the figures
shown. For the most recent month-end performance figures, please visit
http://www.ftportfolios.com or speak with your financial advisor. Investment
returns and net asset value will fluctuate and Membership Interests, when sold,
may be worth more or less than their original cost.
HOW TO READ THIS REPORT
This report contains information that may help you evaluate your investment. It
includes details about each Portfolio and presents data and analysis that
provide insight into each Portfolio's performance and investment approach.
By reading the market overview and discussion of each Portfolio's performance by
First Trust, the Registrant's investment advisor, you may obtain an
understanding of how the market environment affected its performance. The
statistical information that follows may help you understand a Portfolio's
performance compared to that of relevant market benchmarks.
It is important to keep in mind that the opinions expressed by personnel of
First Trust 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. The risks of investing in the
Portfolios are spelled out in the prospectus, the statement of additional
information, this report and other regulatory filings.
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SHAREHOLDER LETTER
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FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL LETTER FROM THE CHAIRMAN AND CEO
DECEMBER 31, 2012
Dear Shareholders:
I am pleased to present you with the annual report for your investment in First
Defined Portfolio Fund, LLC.
The report you hold contains detailed information about the eight portfolios in
the First Defined Portfolio Fund, LLC (the "Registrant") over the twelve months
ended December 31, 2012. It contains a market overview and a performance
analysis for the period. I encourage you to read this document and discuss it
with your financial advisor. A successful investor is also typically a
knowledgeable one, as we have found to be the case at First Trust.
First Trust remains committed to being a long-term investor and investment
manager and to bringing you quality financial solutions regardless of market ups
and downs. We have always believed, as I have written previously, that there are
two ways to attain success in reaching your financial goals: staying invested in
quality products and having a long-term investment horizon. We are committed to
this approach in the products we manage or supervise and offer to investors.
As you know, First Trust offers a variety of products that we believe could fit
many financial plans to help investors seeking long-term investment success. We
encourage you to talk to your advisor about the other investments First Trust
offers that might also fit your financial goals and to discuss those goals with
your advisor regularly so that he or she can help keep you on track.
First Trust will continue to make available up-to-date information about your
investments so you and your financial advisor are current on any First Trust
investments you own. We value our relationship with you, and thank you for the
opportunity to assist you in achieving your financial goals. I look forward to
2013 and to the next edition of your Registrant's report.
Sincerely,
/a/ James A. Bowen
James A. Bowen
Chairman of the Board of Trustees of First Defined Portfolio Fund, LLC and Chief
Executive Officer of First Trust Advisors L.P.
Page 1
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MARKET OVERVIEW
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FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012
ROBERT F. CAREY, CFA
SENIOR VICE PRESIDENT AND CHIEF MARKET STRATEGIST
FIRST TRUST ADVISORS L.P.
Mr. Carey is responsible for the overall management of research and analysis of
the First Trust product line. Mr. Carey has over 22 years of experience as an
Equity and Fixed-Income Analyst and is a recipient of the Chartered Financial
Analyst ("CFA") designation. He is a graduate of the University of Illinois at
Champaign-Urbana with a B.S. in Physics. He is also a member of the Investment
Analysts Society of Chicago and the CFA Institute. Mr. Carey has appeared as a
guest on such programs as Bloomberg TV, CNBC and WBBM Radio and has been quoted
by several publications, including The Wall Street Journal, The Wall Street
Reporter, Bloomberg News Service, and Registered Rep.
STATE OF THE ECONOMY/INVESTING
The U.S. economy continued to grow at around a 2% annual clip during 2012. The
Federal Reserve has injected trillions of dollars of stimulus into the economy
since the start of the financial crisis. It has already helped stabilize the
commercial and residential real estate markets in the U.S. by artificially
keeping interest rates at or near historically low levels. While we continue to
see job creation on a monthly basis, the number of new jobs created, 158,000 per
month on average in 2012, is at least 100,000 below the low end of the desired
target. We believe a good amount of the stimulus is simply sitting idle waiting
to be put to work. Some smart policy making out of Washington, D.C. early in
2013 could inspire a real boost in economic activity, in our opinion.
Should economic growth in the U.S. accelerate at some point in response to the
abundance of stimulus from the Federal Reserve, interest rates could quickly
begin to rise off their artificially low levels, in our opinion. While that
would naturally impede total returns in the bond market, it should benefit the
relative performance of equities. Data from Standard & Poor's revealed that,
since 1953, U.S. stocks actually posted their best returns when the yield on the
10-year T-note rose to around 4.0%, according to Businessweek. The S&P 500
gained an average of 1.7% per month during periods when yields climbed to a
range of 3.0% to 4.0%. Stock prices usually retrench when the yield on the
10-year T-note tops 6.0%. Sam Stovall, S&P's chief equity strategist, defined
this "sweet spot" as a period where growth in the economy reduces unemployment,
increases corporate earnings, but does not trigger growth-slowing efforts by the
Federal Reserve.
U.S. STOCKS AND BONDS
All of the major U.S. stock indices posted double-digit total returns in 2012.
The S&P 500 Index, S&P MidCap 400 Index and S&P SmallCap 600 Index were up
16.00%, 17.86%, and 16.32%, respectively, according to Bloomberg. All 10 major
sectors in the S&P 500 posted gains in 2012. The top-performing sector was
financials, up 28.92%, as measured by the S&P 500 Financials Index. The sector
with the poorest showing was utilities, up 1.31%, as measured by the S&P 500
Utilities Index. Volatility was down in 2012. The VIX Index averaged 17.82,
markedly below its 10-year average of 20.95. The 2013 estimated earnings growth
rates for the S&P 500, S&P 400 and S&P 600 are 13.77%, 19.85% and 32.17%,
respectively.
The S&P 500 did not post a single closing price value in 2012 that was below its
2011 year-end close of 1257.60, according to Bespoke Investment Group. In other
words, the index was up, on a year-to-date basis, every trading day of 2012.
Since 1928, only eight other calendar years (1943, 1951, 1958, 1964, 1967, 1975,
1976 & 1979) accomplished this feat. The S&P 500's average price-only return for
these nine years (including 2012) was 20.37%, according to Bespoke. The index
was up 13.41% (price-only) in 2012. With respect to the previous eight
occasions, the average price-only return for the following year was 10.52%. The
S&P 500 was up 2.54% its first trading day of 2013.
In the U.S. bond market, the top-performing major debt group in 2012 was
high-yield corporate bonds. The Barclays Capital U.S. Corporate High Yield Index
posted a total return of 15.81%. The next closest domestic category was
municipal bonds, up 11.26%, as measured by the Barclays Capital Municipal Bond:
Long Bond (22+) Index. The Barclays Capital U.S. Treasury: Intermediate Index
posted the weakest return, up 1.71%.
Page 2
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MARKET OVERVIEW - (CONTINUED)
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FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012
FOREIGN STOCKS AND BONDS
Riskier asset classes outperformed overseas in 2012. The Barclays Capital Global
Emerging Markets Index of debt securities rose 18.14% (USD), compared to 4.32%
(USD) for the Barclays Capital Global Aggregate Index of higher-quality debt.
The MSCI Emerging Markets Index posted a total return of 18.22% (USD), compared
to 16.83% (USD) for the MSCI World Index (excluding the U.S.). The U.S. dollar
provided little influence on returns from investments overseas for U.S.
investors by declining 0.5% against a basket of major currencies, as measured by
the U.S. Dollar Index (DXY).
Page 3
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PERFORMANCE SUMMARY AND PORTFOLIO COMPONENTS
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FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012 (UNAUDITED)
TARGET MANAGED VIP PORTFOLIO
Over the twelve months ended December 31, 2012, the Target Managed VIP Portfolio
posted a total return of 13.02% versus 16.41% for the Russell 3000(R) Index over
the same period. The Net Asset Value ("NAV") increased from $9.37 to $10.59
during the period.
Of the Portfolio's 122 stocks, 91 advanced and 31 declined over the period. The
top three performing stocks, by contribution to return, were Home Depot, Inc.
(HD), Apple, Inc. (AAPL) and Gilead Sciences, Inc. (GILD). The worst-performing
stocks, by contribution to return, were Intel Corp. (INTC), Royal KPN N.V., ADR
(KKPNY) and Apollo Group, Inc., Class A (APOL).
The Portfolio underperformed its benchmark primarily due to stock selection in
the telecommunication and information technology sectors. Performance was
further impacted by an underweight in the financial sector which was the
best-performing sector in the benchmark. The Portfolio was also overweight the
information technology sector, which lagged the benchmark. The Portfolio
benefited from positive stock selection in the health care and energy sectors.
An overweight in consumer discretionary was also beneficial as the sector was a
top performer in the benchmark.
All of the data on this page represents past performance which cannot be used to
predict future performance and the information in the table and graph does not
reflect the deduction of taxes that a shareholder would pay on portfolio
distributions or the redemption of shares.
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GROWTH OF A $10,000 INITIAL INVESTMENT
Dec. 31, 2002-Dec. 31, 2012
Target Managed VIP Dow Jones Industrial Russell 3000(R)
Portfolio (a) Avg.(SM)(b) Index (c)
Dec. 02 10000 10000 10000
Dec. 03 13493 12829 13106
Dec. 04 15147 13509 14673
Dec. 05 16244 13741 15576
Dec. 06 18114 16358 18038
Dec. 07 19830 17811 18984
Dec. 08 10943 12125 11903
Dec. 09 12364 14875 15278
Dec. 10 14729 16966 17865
Dec. 11 14482 18389 18048
Dec. 12 16368 20272 21010
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RETURN COMPARISON PERIODS ENDED DEC. 31, 2012
1 YEAR 5 YEAR 10 YEAR SINCE INCEPTION
INCEPTION ANNUAL AVERAGE ANNUAL AVERAGE ANNUAL AVERAGE ANNUAL
DATE TOTAL RETURN TOTAL RETURN TOTAL RETURN TOTAL RETURN
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Target Managed VIP Portfolio (a) 10/6/99 13.02% -3.76% 5.05% 0.43%
Dow Jones Industrial Avg.(SM) (b) 10.24% 2.62% 7.31% 4.05%
Russell 3000(R) Index (c) 16.41% 2.04% 7.69% 3.22%
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(a) Effective April 30, 2002, based upon the determination of the Registrant's
Board of Trustees, the Portfolio changed its name from the Dow(R) Target 5
Portfolio to the Target Managed VIP Portfolio. The Portfolio's primary
investment strategy was also changed. The performance figures provided for
the periods prior to April 30, 2002, reflect the Portfolio's performance
prior to the name change and the change of the primary investment
strategy.
(b) The Dow Jones Industrial Average(SM) is a price-weighted average of 30
blue-chip stocks that are generally the leaders in their industry. It has
been a widely followed indicator of the stock market since October 1,
1928. (Bloomberg). (The index reflects no deduction for fees, expenses or
taxes).
(c) The Russell 3000(R) Index is composed of 3,000 large U.S. companies, as
determined by market capitalization. This index represents approximately
98% of the investable U.S. equity market. (Bloomberg). (The index reflects
no deduction for fees, expenses or taxes).
The returns for the Portfolio do not reflect the deduction of expenses
associated with variable products, such as mortality and expense risk charges,
separate account charges, and sales charges or the effect of taxes. These
expenses would reduce the overall returns shown.
Page 4
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PERFORMANCE SUMMARY AND PORTFOLIO COMPONENTS - (CONTINUED)
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FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012 (UNAUDITED)
TARGET MANAGED VIP PORTFOLIO (CONTINUED)
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% OF TOTAL
TOP 10 HOLDINGS INVESTMENTS
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Intel Corp. 6.0%
Chevron Corp. 5.5
Apple, Inc. 5.0
Home Depot (The), Inc. 4.5
Walt Disney (The) Co. 4.0
Microsoft Corp. 3.9
Pfizer, Inc. 3.5
Exxon Mobil Corp. 3.1
Gilead Sciences, Inc. 2.4
BCE, Inc. 2.4
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Total 40.3%
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% OF TOTAL
SECTOR INVESTMENTS
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Information Technology 24.4%
Consumer Discretionary 18.9
Health Care 11.8
Energy 11.6
Financials 8.8
Telecommunication Services 8.6
Utilities 5.9
Industrials 4.5
Consumer Staples 3.9
Materials 1.6
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Total 100.0%
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Page 5
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PERFORMANCE SUMMARY AND PORTFOLIO COMPONENTS - (CONTINUED)
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FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012 (UNAUDITED)
THE DOW(R) DART 10 PORTFOLIO
Over the twelve months ended December 31, 2012, The Dow(R) DART 10 Portfolio
posted a total return of 10.74% versus 10.24% for the Dow Jones Industrial
Average(SM) over the same period. The Net Asset Value ("NAV") increased from
$10.89 to $12.06 during the period.
Of the Portfolio's 10 stocks, 8 advanced and 2 declined over the period. The top
three performing stocks, by contribution to return, were Home Depot, Inc. (HD),
Walt Disney Co. (DIS) and JPMorgan Chase & Co. (JPM). The worst-performing
stocks, by contribution to return, were Hewlett-Packard Co. (HPQ), Intel Corp.
(INTC), and Exxon Mobil Corp. (XOM).
Three stocks drove performance for the year and were the primary reason the
Portfolio outperformed the benchmark. The leading stocks were Home Depot Inc.
(HD), up 50%, Walt Disney Co. (DIS), up 22% and JPMorgan Chase & Co. (JPM), up
29%. Hewlett-Packard (HPQ) was the largest detractor from performance. HPQ was
down 43% as the company struggled to grow revenues as it restructures.
All of the data on this page represents past performance which cannot be used to
predict future performance and the information in the table and graph does not
reflect the deduction of taxes that a shareholder would pay on portfolio
distributions or the redemption of shares.
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GROWTH OF A $10,000 INITIAL INVESTMENT
Dec. 31, 2002-Dec. 31, 2012
The Dow(R) DART 10 Dow Jones Industrial
Portfolio Avg.(SM)(a)
Dec. 02 10000 10000
Dec. 03 11991 12829
Dec. 04 12450 13509
Dec. 05 12049 13741
Dec. 06 15129 16358
Dec. 07 15229 17811
Dec. 08 10888 12125
Dec. 09 12407 14875
Dec. 10 14484 16966
Dec. 11 15602 18389
Dec. 12 17278 20272
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RETURN COMPARISON PERIODS ENDED DEC. 31, 2012
1 YEAR 5 YEAR 10 YEAR SINCE INCEPTION
INCEPTION ANNUAL AVERAGE ANNUAL AVERAGE ANNUAL AVERAGE ANNUAL
DATE TOTAL RETURN TOTAL RETURN TOTAL RETURN TOTAL RETURN
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The Dow(R) DART 10 Portfolio 10/6/99 10.74% 2.56% 5.62% 1.42%
Dow Jones Industrial Avg.(SM) (a) 10.24% 2.62% 7.31% 4.05%
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(a) The Dow Jones Industrial Average(SM) is a price-weighted average of 30
blue-chip stocks that are generally the leaders in their industry. It has
been a widely followed indicator of the stock market since October 1,
1928. (Bloomberg). (The index reflects no deduction for fees, expenses or
taxes).
The returns for the Portfolio do not reflect the deduction of expenses
associated with variable products, such as mortality and expense risk charges,
separate account charges, and sales charges or the effect of taxes. These
expenses would reduce the overall returns shown.
Page 6
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PERFORMANCE SUMMARY AND PORTFOLIO COMPONENTS - (CONTINUED)
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FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012 (UNAUDITED)
THE DOW(R) DART 10 PORTFOLIO - (CONTINUED)
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% OF TOTAL
TOP 10 HOLDINGS INVESTMENTS
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Home Depot (The), Inc. 13.3%
Walt Disney (The) Co. 12.0
JPMorgan Chase & Co. 11.9
Travelers (The) Cos., Inc. 10.9
Pfizer, Inc. 10.5
Wal-Mart Stores, Inc. 10.3
International Business Machines Corp. 9.3
Exxon Mobil Corp. 9.2
Intel Corp. 7.6
Hewlett-Packard Co. 5.0
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Total 100.0%
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% OF TOTAL
SECTOR INVESTMENTS
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Consumer Discretionary 25.3%
Financials 22.8
Information Technology 22.0
Health Care 10.4
Consumer Staples 10.3
Energy 9.2
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Total 100.0%
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Page 7
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PERFORMANCE SUMMARY AND PORTFOLIO COMPONENTS - (CONTINUED)
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FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012 (UNAUDITED)
THE DOW(R) TARGET DIVIDEND PORTFOLIO
Over the twelve months ended December 31, 2012, The Dow(R) Target Dividend
Portfolio posted a total return of 5.57% versus 10.84% for the Dow Jones U.S.
Select Dividend Index(SM) over the same period. The Net Asset Value ("NAV")
increased from $9.88 to $10.43 during the period.
Of the Portfolio's 20 stocks, 14 advanced and 6 declined over the period. The
top three performing stocks, by contribution to return, were Sempra Energy
(SRE), MeadWestvaco Corp. (MWV) and Northrop Grumman Corp. (NOC). The
worst-performing stocks, by contribution to return, were R.R. Donnelley & Sons
Co. (RRD), First Niagara Financial Group, Inc. (FNFG) and FirstMerit Corp.
(FMER).
The Portfolio underperformed the benchmark primarily because of stock selection
in the financial, industrial and materials sectors. While materials was the
best-performing sector in the benchmark and the Portfolio was overweight, poor
stock selection led to a negative contribution from the sector. The three stocks
that were selected in the sector all underperformed the benchmark sector which
had a nearly 30% return. The three stocks were Commercial Metals (CMC) which had
an 11% return, Olin Corp (OLN) which had a 12% return and MeadWestvaco Corp.
(MWV) which was up 23%. The utilities sector helped mitigate some of the
underperformance with a positive selection effect.
All of the data on this page represents past performance which cannot be used to
predict future performance and the information in the table and graph does not
reflect the deduction of taxes that a shareholder would pay on portfolio
distributions or the redemption of shares.
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GROWTH OF A $10,000 INITIAL INVESTMENT
May 2, 2005-Dec. 31, 2012
The Dow Target Dow Jones U.S. Select S&P 500(R)
Dividend Portfolio Dividend Index(SM)(a) Index (b)
May 05 10000 10000 10000
Dec. 05 9870 10529 10879
Dec. 06 11660 12587 12598
Dec. 07 11790 11938 13290
Dec. 08 7010 8240 8373
Dec. 09 8000 9157 10589
Dec. 10 9321 10835 12184
Dec. 11 9881 12180 12441
Dec. 12 10432 13501 14432
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RETURN COMPARISON PERIODS ENDED DEC. 31, 2012
1 YEAR 5 YEAR SINCE INCEPTION
INCEPTION ANNUAL AVERAGE ANNUAL AVERAGE ANNUAL
DATE TOTAL RETURN TOTAL RETURN TOTAL RETURN
-------------------------------------------------------------------------------------------------------------
The Dow(R) Target Dividend Portfolio 5/2/05 5.57% -2.42% 0.55%
Dow Jones U.S. Select Dividend Index(SM) (a) 10.84% 2.49% 3.99%
S&P 500(R) Index (b) 16.00% 1.66% 4.91%
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(a) The Dow Jones U.S. Select Dividend Index(SM) is comprised of 100 of the
highest dividend-yielding securities (excluding REITs) in the Dow Jones
U.S. Index. (The index reflects no deduction for fees, expenses or taxes).
(b) The S&P 500(R) Index is a capitalization-weighted index of 500 stocks. The
index is designed to measure performance of the broad domestic economy
through changes in the aggregate market value of 500 stocks representing
all major industries. (Bloomberg). (The index reflects no deduction for
fees, expenses or taxes).
The returns for the Portfolio do not reflect the deduction of expenses
associated with variable products, such as mortality and expense risk charges,
separate account charges, and sales charges or the effect of taxes. These
expenses would reduce the overall returns shown.
Page 8
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PERFORMANCE SUMMARY AND PORTFOLIO COMPONENTS - (CONTINUED)
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FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012 (UNAUDITED)
THE DOW(R) TARGET DIVIDEND PORTFOLIO (CONTINUED)
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% OF TOTAL
TOP 10 HOLDINGS INVESTMENTS
----------------------------------------------
Sempre Energy 6.3%
Pfizer, Inc. 5.6
BB&T Corp. 5.6
Northrop Grumman Corp. 5.6
Olin Corp. 5.3
DTE Energy Co. 5.3
Astoria Financial Corp. 5.3
Commercial Metals Co. 5.3
Republic Services, Inc. 5.2
MeadWestvaco Corp. 5.2
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Total 54.7%
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% OF TOTAL
SECTOR INVESTMENTS
----------------------------------------------
Utilities 30.5%
Financials 29.0
Materials 15.8
Industrials 14.2
Health Care 5.6
Energy 4.9
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Total 100.0%
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Page 9
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PERFORMANCE SUMMARY AND PORTFOLIO COMPONENTS - (CONTINUED)
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FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012 (UNAUDITED)
GLOBAL DIVIDEND TARGET 15 PORTFOLIO
Over the twelve months ended December 31, 2012, the Global Dividend Target 15
Portfolio posted a total return of 25.37% versus 15.83% for the Morgan Stanley
Capital International Developed Markets World Index over the same period. The
Net Asset Value ("NAV") increased from $19.63 to $24.61 during the period.
Of the Portfolio's 15 stocks, 12 advanced and 3 declined over the period. The
top three performing stocks, by contribution to return, were New World
Development Co., Ltd. (17 HK), Logica PLC (LOG LN) and Ladbrokes PLC (LAD LN).
The worst-performing stocks, by contribution to return, were Man Group PLC (EMG
LN), Intel Corp. (INTC) and Vodafone Group PLC (VOD LN).
The Portfolio outperformed its benchmark for the year. Three stocks drove
performance: New World Development, Ltd. (17 HK) was up over 87%, Logica PLC
(LOG LN) was up over 56% and Ladbrokes PLC (LAD LN) was up over 61%. Some of the
outperformance was mitigated by two companies which had negative returns for the
year: Man Group PLC (EMG LN) had a -22% return and Intel Corp. (INTC) had a -12%
return. The five Hong Kong companies led the way with an average 36% return,
while the five U.K. companies had an average 25% return and the five U.S.
companies had an average 10% return.
All of the data on this page represents past performance which cannot be used to
predict future performance and the information in the table and graph does not
reflect the deduction of taxes that a shareholder would pay on portfolio
distributions or the redemption of shares.
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GROWTH OF A $10,000 INITIAL INVESTMENT
Dec. 31, 2002-Dec. 31, 2012
Global Dividend MSCI Developed Markets
Target 15 Portfolio (a) World Index (b)
Dec. 02 10000 10000
Dec. 03 13410 13311
Dec. 04 16820 15720
Dec. 05 18532 16719
Dec. 06 25655 20073
Dec. 07 29078 21887
Dec. 08 16638 12976
Dec. 09 23472 16868
Dec. 10 25753 18852
Dec. 11 23824 17808
Dec. 12 29869 20627
--------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
RETURN COMPARISON PERIODS ENDED DEC. 31, 2012
1 YEAR 5 YEAR 10 YEAR SINCE INCEPTION
INCEPTION ANNUAL AVERAGE ANNUAL AVERAGE ANNUAL AVERAGE ANNUAL
DATE TOTAL RETURN TOTAL RETURN TOTAL RETURN TOTAL RETURN
---------------------------------------------------------------------------------------------------------------------
Global Dividend Target 15 Portfolio (a) 10/6/99 25.37% 0.54% 11.56% 7.04%
MSCI Developed Markets World Index (b) 15.83% -1.18% 7.50% 2.36%
---------------------------------------------------------------------------------------------------------------------
(a) Effective May 2, 2005, based upon the determination of the Registrant's
Board of Trustees, the Portfolio changed its name from the Global Target
15 Portfolio to the Global Dividend Target 15 Portfolio.
(b) The Morgan Stanley Capital International Developed Markets World Index
("MSCI Developed Markets World Index") is based on the share prices of
approximately 1,600 companies listed on stock exchanges in the twenty-two
countries that make up the MSCI National Indices. (Bloomberg). (The index
reflects no deduction for fees, expenses or taxes).
The returns for the Portfolio do not reflect the deduction of expenses
associated with variable products, such as mortality and expense risk charges,
separate account charges, and sales charges or the effect of taxes. These
expenses would reduce the overall returns shown.-
Page 10
--------------------------------------------------------------------------------
PERFORMANCE SUMMARY AND PORTFOLIO COMPONENTS - (CONTINUED)
--------------------------------------------------------------------------------
FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012 (UNAUDITED)
GLOBAL DIVIDEND TARGET 15 PORTFOLIO (CONTINUED)
----------------------------------------------
% OF TOTAL
TOP 10 HOLDINGS INVESTMENTS
----------------------------------------------
New World Development Co., Ltd. 11.7%
Ladbrokes PLC 9.8
RSA Insurance Group PLC 7.6
COSCO Pacific Ltd. 7.5
Bank of China Ltd. 7.4
Industrial & Commercial Bank of
China Ltd. 7.3
General Electric Co. 7.0
Pfizer, Inc. 6.9
PetroChina Co., Ltd., Class H 6.9
AT&T, Inc. 6.7
----------------------------------------------
Total 78.8%
=====
----------------------------------------------
% OF TOTAL
SECTOR INVESTMENTS
----------------------------------------------
Financials 38.2%
Industrials 14.5
Telecommunication Services 12.2
Consumer Discretionary 9.8
Energy 6.9
Health Care 6.9
Consumer Staples 6.5
Information Technology 5.0
----------------------------------------------
Total 100.0%
======
Page 11
--------------------------------------------------------------------------------
PERFORMANCE SUMMARY AND PORTFOLIO COMPONENTS - (CONTINUED)
--------------------------------------------------------------------------------
FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012 (UNAUDITED)
S&P(R) TARGET 24 PORTFOLIO
Over the twelve months ended December 31, 2012, the S&P(R) Target 24 Portfolio
posted a total return of 9.45% versus 16.00% for the S&P 500(R) Index over the
same period. The Net Asset Value ("NAV") increased from $10.27 to $11.24 during
the period.
Of the Portfolio's 24 stocks, 19 advanced and 5 declined over the period. The
top three performing stocks, by contribution to return, were Gilead Sciences,
Inc. (GILD), Amgen, Inc. (AMGN) and 3M Co. (MMM). The worst-performing stocks,
by contribution to return, were Apollo Group, Inc., Class A (APOL), Intel Corp.
(INTC) and Helmerich & Payne, Inc. (HP).
The Portfolio underperformed the benchmark primarily due to the selection effect
in the consumer discretionary, financial and information technology sectors. The
health care sector had the strongest overall contribution to performance while
the consumer discretionary sector had the worst overall contribution to the
portfolio.
All of the data on this page represents past performance which cannot be used to
predict future performance and the information in the table and graph does not
reflect the deduction of taxes that a shareholder would pay on portfolio
distributions or the redemption of shares.
--------------------------------------------------------------------------------
GROWTH OF A $10,000 INITIAL INVESTMENT
Dec. 31, 2002-Dec. 31, 2012
S&P(R) Target 24 S&P 500(R)
Portfolio (a) Index (b)
Dec. 02 10000 10000
Dec. 03 12410 12868
Dec. 04 14104 14268
Dec. 05 14691 14969
Dec. 06 15114 17334
Dec. 07 15749 18286
Dec. 08 11352 11520
Dec. 09 12916 14570
Dec. 10 15408 16765
Dec. 11 16727 17119
Dec. 12 18308 19858
--------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
RETURN COMPARISON PERIODS ENDED DEC. 31, 2012
1 YEAR 5 YEAR 10 YEAR SINCE INCEPTION
INCEPTION ANNUAL AVERAGE ANNUAL AVERAGE ANNUAL AVERAGE ANNUAL
DATE TOTAL RETURN TOTAL RETURN TOTAL RETURN TOTAL RETURN
---------------------------------------------------------------------------------------------------------------------
S&P(R) Target 24 Portfolio (a) 10/6/99 9.45% 3.05% 6.23% 0.89%
S&P 500(R) Index (b) 16.00% 1.66% 7.09% 2.44%
---------------------------------------------------------------------------------------------------------------------
(a) Effective April 30, 2002, based upon the determination of the Registrant's
Board of Trustees, the Portfolio changed its name from the S&P(R) Target
10 Portfolio to the S&P(R) Target 24 Portfolio. The Portfolio's primary
investment strategy was also changed. The performance figures provided for
the periods prior to April 30, 2002, reflect the Portfolio's performance
prior to the name change and the change of the primary investment
strategy.
(b) The S&P 500(R) Index is a capitalization-weighted index of 500 stocks. The
index is designed to measure performance of the broad domestic economy
through changes in the aggregate market value of 500 stocks representing
all major industries. (Bloomberg). (The index reflects no deduction for
fees, expenses or taxes).
The returns for the Portfolio do not reflect the deduction of expenses
associated with variable products, such as mortality and expense risk charges,
separate account charges, and sales charges or the effect of taxes. These
expenses would reduce the overall returns shown.
Page 12
--------------------------------------------------------------------------------
PERFORMANCE SUMMARY AND PORTFOLIO COMPONENTS - (CONTINUED)
--------------------------------------------------------------------------------
FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012 (UNAUDITED)
S&P(R) TARGET 24 PORTFOLIO (CONTINUED)
----------------------------------------------
% OF TOTAL
TOP 10 HOLDINGS INVESTMENTS
----------------------------------------------
International Business Machines Corp. 11.1%
Chevron Corp. 10.2
Amgen, Inc. 9.3
3M Co. 7.8
Chubb Corp. 6.8
Gilead Sciences, Inc. 6.7
Coca-Cola (The) Co. 6.5
Marsh & McLennan Cos., Inc. 5.9
Philip Morris International, Inc. 5.7
Intel Corp. 5.2
----------------------------------------------
Total 75.2%
=====
----------------------------------------------
% OF TOTAL
SECTOR INVESTMENTS
----------------------------------------------
Information Technology 19.2%
Health Care 17.1
Financials 14.4
Consumer Staples 12.9
Energy 12.0
Industrials 11.4
Consumer Discretionary 9.4
Utilities 3.6
----------------------------------------------
Total 100.0%
======
Page 13
--------------------------------------------------------------------------------
PERFORMANCE SUMMARY AND PORTFOLIO COMPONENTS - (CONTINUED)
--------------------------------------------------------------------------------
FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012 (UNAUDITED)
NASDAQ(R) TARGET 15 PORTFOLIO
Over the twelve months ended December 31, 2012, the NASDAQ(R) Target 15
Portfolio posted a total return of 12.99% versus 18.34% for the NASDAQ 100
Index(R) over the same period. The Net Asset Value ("NAV") increased from $9.39
to $10.61 during the period.
Of the Portfolio's 15 stocks, 11 advanced and 4 declined over the period. The
top three performing stocks, by contribution to return, were, Gilead Sciences,
Inc. (GILD), Apple, Inc. (AAPL) and Biogen Idec, Inc. (BIIB). The
worst-performing stocks, by contribution to return, were Apollo Group, Inc.,
Class A (APOL), Intel Corp. (INTC) and Bed Bath & Beyond, Inc. (BBBY).
The Portfolio underperformed the benchmark primarily due to stock selection in
the consumer discretionary sector. The health care sector had a positive
selection effect but that was not enough to overcome the consumer discretionary
underperformance.
All of the data on this page represents past performance which cannot be used to
predict future performance and the information in the table and graph does not
reflect the deduction of taxes that a shareholder would pay on portfolio
distributions or the redemption of shares.
--------------------------------------------------------------------------------
GROWTH OF A $10,000 INITIAL INVESTMENT
Dec. 31, 2002-Dec. 31, 2012
NASDAQ(R) NASDAQ(R) 100
Target 15 Portfolio Index (a)
Dec. 02 10000 10000
Dec. 03 13602 14949
Dec. 04 13236 16555
Dec. 05 13675 16869
Dec. 06 14890 18089
Dec. 07 18126 21580
Dec. 08 8902 12609
Dec. 09 10410 19497
Dec. 10 10118 23425
Dec. 11 13573 24287
Dec. 12 15417 28742
---------------------------------------------------------------------------------------------------------------------
RETURN COMPARISON PERIODS ENDED DEC. 31, 2012
1 YEAR 5 YEAR 10 YEAR SINCE INCEPTION
INCEPTION ANNUAL AVERAGE ANNUAL AVERAGE ANNUAL AVERAGE ANNUAL
DATE TOTAL RETURN TOTAL RETURN TOTAL RETURN TOTAL RETURN
---------------------------------------------------------------------------------------------------------------------
NASDAQ(R) Target 15 Portfolio 10/6/99 12.99% -3.04% 4.50% 0.45%
NASDAQ(R) 100 Index (a) 18.34% 5.91% 11.13% 0.85%
---------------------------------------------------------------------------------------------------------------------
(a) The NASDAQ(R) 100 Index is a modified capitalization-weighted index of the
100 largest and most active non-financial domestic and international
issues listed on the NASDAQ(R). (Bloomberg). (The index reflects no
deduction for fees, expenses or taxes).
The returns for the Portfolio do not reflect the deduction of expenses
associated with variable products, such as mortality and expense risk charges,
separate account charges, and sales charges or the effect of taxes. These
expenses would reduce the overall returns shown.
Page 14
--------------------------------------------------------------------------------
PERFORMANCE SUMMARY AND PORTFOLIO COMPONENTS - (CONTINUED)
--------------------------------------------------------------------------------
FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012 (UNAUDITED)
NASDAQ(R) TARGET 15 PORTFOLIO (CONTINUED)
----------------------------------------------
% OF TOTAL
TOP 10 HOLDINGS INVESTMENTS
----------------------------------------------
Gilead Sciences, Inc. 12.2%
Biogen Idec, Inc. 8.9
Apple, Inc. 8.8
Starbucks Corp. 7.7
Intuitive Surgical, Inc. 7.1
Fastenal Co. 7.1
Microsoft Corp. 6.9
Ross Stores, Inc. 6.7
Mattel, Inc. 6.6
Bed Bath & Beyond, Inc. 6.4
----------------------------------------------
Total 78.4%
=====
----------------------------------------------
% OF TOTAL
SECTOR INVESTMENTS
----------------------------------------------
Consumer Discretionary 34.2%
Health Care 28.1
Information Technology 25.7
Industrials 7.1
Consumer Staples 4.9
----------------------------------------------
Total 100.0%
======
Page 15
--------------------------------------------------------------------------------
PERFORMANCE SUMMARY AND PORTFOLIO COMPONENTS - (CONTINUED)
--------------------------------------------------------------------------------
FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012 (UNAUDITED)
FIRST TRUST TARGET FOCUS FOUR PORTFOLIO
Over the twelve months ended December 31, 2012, the First Trust Target Focus
Four Portfolio posted a total return of 13.83% versus 16.00% for the S&P 500(R)
Index over the same period. The Net Asset Value ("NAV") increased from $4.41 to
$5.02 during the period.
Of the Portfolio's 128 stocks, 89 advanced and 39 declined over the period. The
top three performing stocks, by contribution to return, were Seagate Technology
PLC (STX), AOL, Inc. (AOL) and BT Group PLC, ADR (BT). The worst-performing
stocks, by contribution to return, were Humana, Inc. (HUM), R.R. Donnelley &
Sons Co. (RRD), and Quicksilver Resources, Inc. (KWK).
The Portfolio underperformed the benchmark primarily because of stock selection
in the financial sector. The financial sector was the best-performing sector in
the benchmark. Although the Portfolio was overweight the sector, overall stock
selection hurt the Portfolio. The bottom-performing financial stocks were: First
Niagara Financial Group, Inc. (FNFG), People's United Financial, Inc. (PBCT) and
Columbia Banking System, Inc. (COLB). The portfolio did have positive stock
selection in the information technology, utilities and energy sectors.
All of the data on this page represents past performance which cannot be used to
predict future performance and the information in the table and graph does not
reflect the deduction of taxes that a shareholder would pay on portfolio
distributions or the redemption of shares.
--------------------------------------------------------------------------------
GROWTH OF A $10,000 INITIAL INVESTMENT
Dec. 31, 2002-Dec. 31, 2012
First Trust Target S&P 500(R)
Focus Four Portfolio (a) Index (b)
Dec. 02 10000 10000
Dec. 03 13695 12868
Dec. 04 15249 14268
Dec. 05 15337 14969
Dec. 06 15953 17334
Dec. 07 16862 18286
Dec. 08 9472 11520
Dec. 09 12200 14570
Dec. 10 14516 16765
Dec. 11 12932 17119
Dec. 12 14721 19858
--------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
RETURN COMPARISON PERIODS ENDED DEC. 31, 2012
1 YEAR 5 YEAR 10 YEAR SINCE INCEPTION
INCEPTION ANNUAL AVERAGE ANNUAL AVERAGE ANNUAL AVERAGE ANNUAL
DATE TOTAL RETURN TOTAL RETURN TOTAL RETURN TOTAL RETURN
------------------------------------------------------------------------------------------------------------
First Trust Target Focus Four
Portfolio (a) 10/6/99 13.83% -2.68% 3.94% -5.07%
S&P 500(R) Index (b) 16.00% 1.66% 7.09% 2.44%
------------------------------------------------------------------------------------------------------------
(a) Effective November 19, 2007, based upon the determination of the
Registrant's Board of Trustees, the Portfolio changed its name from the
First Trust 10 Uncommon Values Portfolio to the First Trust Target Focus
Four Portfolio. The Portfolio's primary investment strategy was also
changed. The performance figures provided for the periods prior to
November 19, 2007, reflect the Portfolio's performance prior to the name
change and the change of the primary investment strategy.
(b) The S&P 500(R) Index is a capitalization-weighted index of 500 stocks. The
index is designed to measure performance of the broad domestic economy
through changes in the aggregate market value of 500 stocks representing
all major industries. (Bloomberg). (The index reflects no deduction for
fees, expenses or taxes).
The returns for the Portfolio do not reflect the deduction of expenses
associated with variable products, such as mortality and expense risk charges,
separate account charges, and sales charges or the effect of taxes. These
expenses would reduce the overall returns shown.
Page 16
--------------------------------------------------------------------------------
PERFORMANCE SUMMARY AND PORTFOLIO COMPONENTS - (CONTINUED)
--------------------------------------------------------------------------------
FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012 (UNAUDITED)
FIRST TRUST TARGET FOCUS FOUR PORTFOLIO (CONTINUED)
----------------------------------------------
% OF TOTAL
TOP 10 HOLDINGS INVESTMENTS
----------------------------------------------
Chevron Corp. 8.2%
BCE, Inc. 4.3
BT Group PLC, ADR 3.7
Macy's, Inc. 2.1
Seagate Technology PLC 1.8
Sempra Energy 1.7
CF Industries Holdings, Inc. 1.7
Mattel, Inc. 1.6
Pfizer, Inc. 1.6
BB&T Corp. 1.6
----------------------------------------------
Total 28.3%
=====
----------------------------------------------
% OF TOTAL
SECTOR INVESTMENTS
----------------------------------------------
Financials 20.7%
Energy 13.2
Consumer Discretionary 10.7
Materials 10.4
Telecommunication Services 10.1
Information Technology 10.1
Industrials 9.7
Utilities 8.5
Health Care 5.1
Consumer Staples 1.5
----------------------------------------------
Total 100.0%
======
Page 17
--------------------------------------------------------------------------------
PERFORMANCE SUMMARY AND PORTFOLIO COMPONENTS - (CONTINUED)
--------------------------------------------------------------------------------
FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012 (UNAUDITED)
VALUE LINE(R) TARGET 25 PORTFOLIO
Over the twelve months ended December 31, 2012, the Value Line(R) Target 25
Portfolio posted a total return of 21.35% versus 16.41% for the Russell 3000(R)
Index over the same period. The Net Asset Value ("NAV") increased from $2.81 to
$3.41 during the period.
Of the Portfolio's 25 stocks, 19 advanced and 6 declined over the period. The
top three performing stocks, by contribution to return, were Seagate Technology
PLC (STX), CF Industries Holdings, Inc. (CF) and Mattel, Inc. (MAT). The
worst-performing stocks, by contribution to return, were Humana, Inc. (HUM),
Smithfield Foods, Inc. (SFD) and Kirby Corp. (KEX).
The Portfolio outperformed its benchmark because of a positive selection effect
in the information technology, materials and consumer discretionary sectors. The
information technology sector clearly led the way as the top contributing stocks
were: Seagate Technology PLC (STX), NeuStar, Inc. (NSR) and Atmel Corp. (ATML).
Seagate was up over 94% and had an average weight in the Portfolio throughout
the year of 10.3%. The biggest detractor from relative performance was a lack of
financial exposure, which is part of this strategy's design. The financial
sector was the best performing sector in the benchmark.
All of the data on this page represents past performance which cannot be used to
predict future performance and the information in the table and graph does not
reflect the deduction of taxes that a shareholder would pay on portfolio
distributions or the redemption of shares.
--------------------------------------------------------------------------------
GROWTH OF A $10,000 INITIAL INVESTMENT
Dec. 31, 2002-Dec. 31, 2012
Value Line(R) Target 25 Russell 3000(R)
Portfolio (a) Index (b)
Dec. 02 10000 10000
Dec. 03 14093 13106
Dec. 04 17131 14673
Dec. 05 20506 15576
Dec. 06 21097 18038
Dec. 07 24937 18984
Dec. 08 11266 11903
Dec. 09 12067 15278
Dec. 10 15739 17865
Dec. 11 11858 18048
Dec. 12 14390 21010
--------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
RETURN COMPARISON PERIODS ENDED DEC. 31, 2012
1 YEAR 5 YEAR 10 YEAR SINCE INCEPTION
INCEPTION ANNUAL AVERAGE ANNUAL AVERAGE ANNUAL AVERAGE ANNUAL
DATE TOTAL RETURN TOTAL RETURN TOTAL RETURN TOTAL RETURN
------------------------------------------------------------------------------------------------------
Value Line(R) Target 25
Portfolio (a) 10/6/99 21.35% -10.42% 3.71% -7.80%
Russell 3000(R) Index (b) 16.41% 2.04% 7.69% 3.22%
------------------------------------------------------------------------------------------------------
(a) Effective April 30, 2002, based upon the determination of the Registrant's
Board of Trustees, the Portfolio changed its name from the First Trust
Internet Portfolio to the Value Line(R) Target 25 Portfolio. The
Portfolio's primary investment strategy was also changed. The performance
figures provided for the periods prior to April 30, 2002, reflect the
Portfolio's performance prior to the name change and the change of the
primary investment strategy.
(b) The Russell 3000(R) Index is composed of 3000 large U.S. companies, as
determined by market capitalization. This index represents approximately
98% of the investable U.S. equity market. (Bloomberg). (The index reflects
no deduction for fees, expenses or taxes).
The returns for the Portfolio do not reflect the deduction of expenses
associated with variable products, such as mortality and expense risk charges,
separate account charges, and sales charges or the effect of taxes. These
expenses would reduce the overall returns shown.
Page 18
--------------------------------------------------------------------------------
PERFORMANCE SUMMARY AND PORTFOLIO COMPONENTS - (CONTINUED)
--------------------------------------------------------------------------------
FIRST DEFINED PORTFOLIO FUND, LLC
ANNUAL REPORT
DECEMBER 31, 2012 (UNAUDITED)
VALUE LINE(R) TARGET 25 PORTFOLIO (CONTINUED)
----------------------------------------------
% OF TOTAL
TOP 10 HOLDINGS INVESTMENTS
----------------------------------------------
Seagate Technology PLC 10.8%
CF Industries Holdings, Inc. 8.9
Mattel, Inc. 8.2
BT Group PLC, ADR 8.0
Macy's, Inc. 7.5
BCE, Inc. 6.6
Chevron Corp. 6.3
PetSmart, Inc. 5.9
DISH Network Corp., Class A 5.8
Humana, Inc. 4.9
----------------------------------------------
Total 72.9%
=====
----------------------------------------------
% OF TOTAL
SECTOR INVESTMENTS
----------------------------------------------
Consumer Discretionary 34.6%
Information Technology 14.8
Telecommunication Services 14.6
Materials 9.8
Industrials 9.5
Energy 6.3
Health Care 6.2
Consumer Staples 4.2
----------------------------------------------
Total 100.0%
======
Page 19
FIRST DEFINED PORTFOLIO FUND, LLC
UNDERSTANDING YOUR FUND EXPENSES
DECEMBER 31, 2012 (UNAUDITED)
As an Interest holder of the Target Managed VIP Portfolio, The Dow(R) DART 10
Portfolio, The Dow(R) Target Dividend Portfolio, Global Dividend Target 15
Portfolio, S&P(R) Target 24 Portfolio, NASDAQ(R) Target 15 Portfolio, First
Trust Target Focus Four Portfolio or Value Line (R) Target 25 Portfolio (the
"Portfolios"), you incur two types of costs: (1) transaction costs; and (2)
ongoing costs, including management fees, distribution and/or service fees, and
other Portfolio expenses. This Example is intended to help you understand your
ongoing costs (in dollars) of investing in the Portfolios and to compare these
costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period of July 1, 2012 to December 31, 2012.
ACTUAL EXPENSES
The first three columns of the table below provide information about actual
account values and actual expenses. You may use the information in these
columns, together with the amount you invested, to estimate the expenses that
you paid over the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then multiply the
result by the number in the third column under the heading entitled "Expenses
Paid During Period" to estimate the expenses you paid on your account during
this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The next three columns of the table below provide information about hypothetical
account values and hypothetical expenses based on the Portfolio's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Portfolio's actual return. The hypothetical account values and expenses may
not be used to estimate the actual ending account balance or expenses you paid
for the period. You may use this information to compare the ongoing costs of
investing in the Portfolio and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads) or redemption fees. Therefore, the hypothetical section of the
table is useful in comparing ongoing costs only, and will not help you determine
the relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
HYPOTHETICAL
ACTUAL EXPENSES (5% RETURN BEFORE EXPENSES)
---------------------------------- ----------------------------------
EXPENSES EXPENSES
BEGINNING ENDING PAID DURING BEGINNING ENDING PAID DURING
ACCOUNT ACCOUNT PERIOD (a) ACCOUNT ACCOUNT PERIOD (a)
VALUE VALUE 07/01/2012- VALUE VALUE 07/01/2012- EXPENSE
07/01/2012 12/31/2012 12/31/2012 07/01/2012 12/31/2012 12/31/2012 RATIO (b)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Target Managed VIP Portfolio .......... $ 1,000.00 $ 1,041.30 $7.54 $ 1,000.00 $ 1,017.75 $7.46 1.47%
The Dow(R) DART 10 Portfolio .......... 1,000.00 1,024.60 7.48 1,000.00 1,017.75 7.46 1.47
The Dow(R) Target Dividend Portfolio .. 1,000.00 1,016.60 7.45 1,000.00 1,017.75 7.46 1.47
Global Dividend Target 15 Portfolio ... 1,000.00 1,117.10 7.82 1,000.00 1,017.75 7.46 1.47
S&P(R) Target 24 Portfolio ............ 1,000.00 1,010.80 7.43 1,000.00 1,017.75 7.46 1.47
NASDAQ(R) Target 15 Portfolio ......... 1,000.00 952.40 7.21 1,000.00 1,017.75 7.46 1.47
First Trust Target Focus Four Portfolio 1,000.00 1,084.20 7.18 1,000.00 1,018.25 6.95 1.37
Value Line(R) Target 25 Portfolio ..... 1,000.00 1,118.00 7.83 1,000.00 1,017.75 7.46 1.47
(a) Expenses are equal to the Portfolio's annualized expense ratio multiplied
by the average account value over the period, multiplied by 184/366 (to
reflect the one half year period).
(b) These expense ratios reflect expense caps.
Page 20
TARGET MANAGED VIP PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - 97.9%
AEROSPACE & DEFENSE - 0.6%
1,257 General Dynamics Corp. .......................................................... $ 87,072
459 Triumph Group, Inc. ............................................................. 29,973
--------------
117,045
--------------
AIRLINES - 0.2%
720 Alaska Air Group, Inc. (a) ...................................................... 31,025
--------------
AUTO COMPONENTS - 0.2%
1,333 Standard Motor Products, Inc. ................................................... 29,619
--------------
BEVERAGES - 1.2%
5,266 Coca-Cola (The) Co. ............................................................. 190,892
584 Monster Beverage Corp. (a) ...................................................... 30,882
--------------
221,774
--------------
BIOTECHNOLOGY - 4.7%
3,151 Amgen, Inc. ..................................................................... 271,994
1,074 Biogen Idec, Inc. (a) ........................................................... 157,524
5,967 Gilead Sciences, Inc. (a) ....................................................... 438,276
--------------
867,794
--------------
CHEMICALS - 0.9%
842 CF Industries Holdings, Inc. .................................................... 171,061
--------------
COMMERCIAL BANKS - 3.1%
18,271 Banco Santander S.A., ADR ....................................................... 149,274
2,770 Bank of The Ozarks, Inc. ........................................................ 92,712
6,980 BNP Paribas S.A., ADR ........................................................... 203,886
2,950 Texas Capital Bancshares, Inc. (a) .............................................. 132,219
--------------
578,091
--------------
COMMERCIAL SERVICES & SUPPLIES - 0.1%
457 Cintas Corp. .................................................................... 18,691
--------------
COMMUNICATIONS EQUIPMENT - 0.7%
28,651 Nokia Oyj, ADR .................................................................. 113,171
505 Riverbed Technology, Inc. (a) ................................................... 9,959
--------------
123,130
--------------
COMPUTERS & PERIPHERALS - 5.9%
1,686 Apple, Inc. ..................................................................... 898,689
5,953 Seagate Technology PLC .......................................................... 181,447
--------------
1,080,136
--------------
CONSUMER FINANCE - 0.5%
1,186 World Acceptance Corp. (a) ...................................................... 88,428
--------------
DIVERSIFIED CONSUMER SERVICES - 0.2%
1,842 Apollo Group, Inc., Class A (a) ................................................. 38,535
--------------
DIVERSIFIED FINANCIAL SERVICES - 0.5%
2,864 MarketAxess Holdings, Inc. ...................................................... 101,099
--------------
See Notes to Financial Statements Page 21
TARGET MANAGED VIP PORTFOLIO
PORTFOLIO OF INVESTMENTS - (CONTINUED)
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - (CONTINUED)
DIVERSIFIED TELECOMMUNICATION SERVICES - 8.5%
5,788 8X8, Inc. (a) ................................................................... $ 42,774
10,001 BCE, Inc. ....................................................................... 429,443
9,910 BT Group PLC, ADR ............................................................... 376,877
11,989 Deutsche Telekom AG, ADR ........................................................ 136,219
8,783 France Telecom S.A., ADR ........................................................ 97,052
11,447 Koninklijke KPN N.V., ADR ....................................................... 57,006
3,669 Swisscom AG, ADR ................................................................ 158,684
8,208 Telefonica S.A., ADR ............................................................ 110,726
6,463 Vivendi S.A., ADR ............................................................... 147,421
--------------
1,556,202
--------------
ELECTRIC UTILITIES - 3.2%
6,389 E.ON AG, ADR .................................................................... 120,017
28,472 EDF S.A., ADR ................................................................... 105,631
34,512 Enel SpA, ADR ................................................................... 142,880
1,220 Southern Co. .................................................................... 52,228
6,888 SSE PLC, ADR .................................................................... 160,215
--------------
580,971
--------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS - 1.1%
1,349 FARO Technologies, Inc. (a) ..................................................... 48,133
1,598 OSI Systems, Inc. (a) ........................................................... 102,336
2,414 PC Connection, Inc. ............................................................. 27,761
1,586 Zygo Corp. (a) .................................................................. 24,900
--------------
203,130
--------------
ENERGY EQUIPMENT & SERVICES - 0.6%
1,281 Halliburton Co. ................................................................. 44,438
149 Helmerich & Payne, Inc. ......................................................... 8,346
7,319 Newpark Resources, Inc. (a) ..................................................... 57,454
--------------
110,238
--------------
FOOD & STAPLES RETAILING - 0.2%
530 Casey's General Stores, Inc. .................................................... 28,143
--------------
FOOD PRODUCTS - 0.8%
3,791 B&G Foods, Inc. ................................................................. 107,323
2,075 Smithfield Foods, Inc. (a) ...................................................... 44,758
--------------
152,081
--------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.5%
170 Intuitive Surgical, Inc. (a) .................................................... 83,363
--------------
HEALTH CARE PROVIDERS & SERVICES - 1.6%
3,069 Air Methods Corp. ............................................................... 113,215
2,114 Humana, Inc. .................................................................... 145,084
2,370 PharMerica Corp. (a) ............................................................ 33,749
--------------
292,048
--------------
HOTELS, RESTAURANTS & LEISURE - 2.5%
1,490 Buffalo Wild Wings, Inc. (a) .................................................... 108,502
Page 22 See Notes to Financial Statements
TARGET MANAGED VIP PORTFOLIO
PORTFOLIO OF INVESTMENTS - (CONTINUED)
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - (CONTINUED)
HOTELS, RESTAURANTS & LEISURE - (CONTINUED)
1,679 Caribou Coffee Co., Inc. (a) .................................................... $ 27,183
1,958 Papa John's International, Inc. (a) ............................................. 107,573
1,187 Red Robin Gourmet Burgers, Inc. (a) ............................................. 41,889
3,262 Starbucks Corp. ................................................................. 174,908
--------------
460,055
--------------
INDUSTRIAL CONGLOMERATES - 1.2%
2,480 3M Co. .......................................................................... 230,268
--------------
INSURANCE - 4.4%
10,644 AXA S.A., ADR ................................................................... 193,934
2,636 Chubb Corp. ..................................................................... 198,543
5,068 Marsh & McLennan Cos., Inc. ..................................................... 174,694
11,220 Muenchener Rueckversicherungs AG, ADR ........................................... 202,297
950 Torchmark Corp. ................................................................. 49,086
--------------
818,554
--------------
INTERNET SOFTWARE & SERVICES - 1.1%
3,312 DealerTrack Holdings, Inc. (a) .................................................. 95,121
1,404 Keynote Systems, Inc. ........................................................... 19,782
5,121 NIC, Inc. ....................................................................... 83,677
--------------
198,580
--------------
IT SERVICES - 3.4%
3,527 Cardtronics, Inc. (a) ........................................................... 83,731
3,152 Heartland Payment Systems, Inc. ................................................. 92,984
1,704 International Business Machines Corp. ........................................... 326,401
175 Mastercard, Inc., Class A ....................................................... 85,974
799 NeuStar, Inc., Class A (a) ...................................................... 33,502
--------------
622,592
--------------
LEISURE EQUIPMENT & PRODUCTS - 1.2%
5,797 Mattel, Inc. .................................................................... 212,286
--------------
LIFE SCIENCES TOOLS & SERVICES - 0.2%
3,754 Cambrex Corp. (a) ............................................................... 42,721
--------------
MACHINERY - 1.0%
3,550 Colfax Corp. (a) ................................................................ 143,242
751 Sauer-Danfoss, Inc. ............................................................. 40,081
--------------
183,323
--------------
MARINE - 0.2%
717 Kirby Corp. (a) ................................................................. 44,375
--------------
MEDIA - 4.7%
2,656 DISH Network Corp., Class A ..................................................... 96,678
4,153 Sinclair Broadcast Group, Inc., Class A ......................................... 52,411
14,497 Walt Disney (The) Co. ........................................................... 721,806
--------------
870,895
--------------
See Notes to Financial Statements Page 23
TARGET MANAGED VIP PORTFOLIO
PORTFOLIO OF INVESTMENTS - (CONTINUED)
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - (CONTINUED)
MULTI-UTILITIES - 2.6%
804 Dominion Resources, Inc. ........................................................ $ 41,647
5,034 GDF Suez S.A., ADR .............................................................. 105,916
2,812 National Grid PLC, ADR .......................................................... 161,521
3,963 RWE AG, ADR ..................................................................... 165,019
326 Wisconsin Energy Corp. .......................................................... 12,013
--------------
486,116
--------------
MULTILINE RETAIL - 1.9%
3,534 Dollar Tree, Inc. (a) ........................................................... 143,339
5,498 Macy's, Inc. .................................................................... 214,532
--------------
357,871
--------------
OIL, GAS & CONSUMABLE FUELS - 10.7%
4,406 Alon USA Energy, Inc. ........................................................... 79,705
2,650 Approach Resources, Inc. (a) .................................................... 66,276
9,133 Chevron Corp. ................................................................... 987,643
4,635 Delek US Holdings, Inc. ......................................................... 117,358
3,322 Eni S.p.A., ADR ................................................................. 163,243
6,411 Exxon Mobil Corp. ............................................................... 554,872
--------------
1,969,097
--------------
PAPER & FOREST PRODUCTS - 0.7%
3,096 Buckeye Technologies, Inc. ...................................................... 88,886
820 Schweitzer-Mauduit International, Inc. .......................................... 32,005
--------------
120,891
--------------
PERSONAL PRODUCTS - 0.6%
2,364 Elizabeth Arden, Inc. (a) ....................................................... 106,404
--------------
PHARMACEUTICALS - 4.6%
2,980 AstraZeneca PLC, ADR ............................................................ 140,865
966 Forest Laboratories, Inc. (a) ................................................... 34,119
1,035 Hi-Tech Pharmacal Co., Inc. ..................................................... 36,204
25,181 Pfizer, Inc. .................................................................... 631,540
--------------
842,728
--------------
PROFESSIONAL SERVICES - 0.7%
2,649 Advisory Board (The) Co. (a) .................................................... 123,947
--------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 6.3%
1,886 Ceva, Inc. (a) .................................................................. 29,704
51,928 Intel Corp. ..................................................................... 1,071,275
561 KLA-Tencor Corp. ................................................................ 26,793
1,816 Nanometrics, Inc. (a) ........................................................... 26,187
--------------
1,153,959
--------------
SOFTWARE - 5.5%
2,241 BroadSoft, Inc. (a) ............................................................. 81,415
26,252 Microsoft Corp. ................................................................. 701,716
2,291 Sourcefire, Inc. (a) ............................................................ 108,181
2,370 Tyler Technologies, Inc. (a) .................................................... 114,803
--------------
1,006,115
--------------
Page 24 See Notes to Financial Statements
TARGET MANAGED VIP PORTFOLIO
PORTFOLIO OF INVESTMENTS - (CONTINUED)
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - (CONTINUED)
SPECIALTY RETAIL - 7.5%
943 Advance Auto Parts, Inc. ........................................................ $ 68,226
413 AutoZone, Inc. (a) .............................................................. 146,380
1,072 Bed Bath & Beyond, Inc. (a) ..................................................... 59,935
1,299 Body Central Corp. (a) .......................................................... 12,938
437 Genesco, Inc. (a) ............................................................... 24,035
13,013 Home Depot (The), Inc. .......................................................... 804,854
1,812 Lithia Motors, Inc., Class A .................................................... 67,805
1,444 PetSmart, Inc. .................................................................. 98,683
1,014 Ross Stores, Inc. ............................................................... 54,908
1,848 Sonic Automotive, Inc., Class A ................................................. 38,605
--------------
1,376,369
--------------
TEXTILES, APPAREL & LUXURY GOODS - 0.3%
2,060 True Religion Apparel, Inc. ..................................................... 52,365
--------------
TOBACCO - 1.0%
157 Lorillard, Inc. ................................................................. 18,317
2,018 Philip Morris International, Inc. ............................................... 168,786
--------------
187,103
--------------
TRADING COMPANIES & DISTRIBUTORS - 0.3%
1,294 Fastenal Co. .................................................................... 60,417
--------------
TOTAL INVESTMENTS - 97.9% ....................................................... 17,999,635
(Cost $16,245,012) (b)
NET OTHER ASSETS AND LIABILITIES - 2.1% ......................................... 389,507
--------------
NET ASSETS - 100.0% ............................................................. $ 18,389,142
==============
-------------------------------------------------
(a) Non-income producing security.
(b) Aggregate cost for federal income tax purposes is $16,245,012. As of
December 31, 2012, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was
$2,944,599 and the aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over value was
$1,189,976.
ADR American Depositary Receipt
VALUATION INPUTS
A summary of the inputs used to value the Portfolio's investments as of December
31, 2012 is as follows (see Note 2A - Portfolio Valuation in the Notes to
Financial Statements):
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
12/31/2012 PRICES INPUTS INPUTS
------------ ------------ ------------ ------------
Common Stocks*....................................... $ 17,999,635 $ 17,999,635 $ -- $ --
============ ============ ============ ============
* See Portfolio of Investments for industry breakout.
All transfers in and out of the Levels during the period are assumed to be on
the last day of the period at their current value. There were no transfers
between the Levels at December 31, 2012.
See Notes to Financial Statements Page 25
THE DOW (R) DART 10 PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - 99.1%
COMPUTERS & PERIPHERALS - 5.0%
22,880 Hewlett-Packard Co. ............................................................. $ 326,040
--------------
DIVERSIFIED FINANCIAL SERVICES - 11.8%
17,541 JPMorgan Chase & Co. ............................................................ 771,278
--------------
FOOD & STAPLES RETAILING - 10.2%
9,772 Wal-Mart Stores, Inc. ........................................................... 666,744
--------------
INSURANCE - 10.8%
9,823 Travelers (The) Cos., Inc. ...................................................... 705,488
--------------
IT SERVICES - 9.2%
3,149 International Business Machines Corp. ........................................... 603,191
--------------
MEDIA - 11.9%
15,545 Walt Disney (The) Co. ........................................................... 773,985
--------------
OIL, GAS & CONSUMABLE FUELS - 9.1%
6,875 Exxon Mobil Corp. ............................................................... 595,031
--------------
PHARMACEUTICALS - 10.4%
27,001 Pfizer, Inc. .................................................................... 677,185
--------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 7.5%
23,878 Intel Corp. ..................................................................... 492,603
--------------
SPECIALTY RETAIL - 13.2%
13,953 Home Depot (The), Inc. .......................................................... 862,993
--------------
TOTAL INVESTMENTS - 99.1% ....................................................... 6,474,538
(Cost $5,891,146) (a)
NET OTHER ASSETS AND LIABILITIES - 0.9% ......................................... 61,639
--------------
NET ASSETS - 100.0% ............................................................. $ 6,536,177
==============
-------------------------------------------------
(a) Aggregate cost for federal income tax purposes is $5,891,146. As of
December 31, 2012, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was
$952,558 and the aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over value was
$369,166.
VALUATION INPUTS
A summary of the inputs used to value the Portfolio's investments as of December
31, 2012 is as follows (see Note 2A - Portfolio Valuation in the Notes to
Financial Statements):
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
12/31/2012 PRICES INPUTS INPUTS
------------ ------------ ------------ ------------
Common Stocks*....................................... $ 6,474,538 $ 6,474,538 $ -- $ --
============ ============ ============ ============
* See Portfolio of Investments for industry breakout.
All transfers in and out of the Levels during the period are assumed to be on
the last day of the period at their current value. There were no transfers
between the Levels at December 31, 2012.
Page 26 See Notes to Financial Statements
THE DOW(R) TARGET DIVIDEND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - 98.6%
AEROSPACE & DEFENSE - 5.5%
12,773 Northrop Grumman Corp. .......................................................... $ 863,199
--------------
CHEMICALS - 5.3%
38,032 Olin Corp. ...................................................................... 821,111
--------------
COMMERCIAL BANKS - 18.8%
29,663 BB&T Corp. ...................................................................... 863,490
66,102 F.N.B. Corp. .................................................................... 702,003
86,267 First Niagara Financial Group, Inc. ............................................. 684,097
49,199 FirstMerit Corp. ................................................................ 698,134
--------------
2,947,724
--------------
COMMERCIAL SERVICES & SUPPLIES - 8.5%
8,394 ACCO Brands Corp. (a) ........................................................... 61,612
52,096 R.R. Donnelley & Sons Co. ....................................................... 468,864
27,255 Republic Services, Inc. ......................................................... 799,389
--------------
1,329,865
--------------
ELECTRIC UTILITIES - 9.6%
18,108 American Electric Power Co., Inc. ............................................... 772,849
25,287 PPL Corp. ....................................................................... 723,967
--------------
1,496,816
--------------
METALS & MINING - 5.2%
54,511 Commercial Metals Co. ........................................................... 810,034
--------------
MULTI-UTILITIES - 20.5%
28,899 Avista Corp. .................................................................... 696,755
13,672 DTE Energy Co. .................................................................. 821,004
13,834 Integrys Energy Group, Inc. ..................................................... 722,411
13,594 Sempra Energy ................................................................... 964,358
--------------
3,204,528
--------------
OIL, GAS & CONSUMABLE FUELS - 4.8%
7,000 Chevron Corp. ................................................................... 756,980
--------------
PAPER & FOREST PRODUCTS - 5.1%
25,050 MeadWestvaco Corp. .............................................................. 798,344
--------------
PHARMACEUTICALS - 5.6%
34,651 Pfizer, Inc. .................................................................... 869,047
--------------
THRIFTS & MORTGAGE FINANCE - 9.7%
87,166 Astoria Financial Corp. ......................................................... 815,874
58,270 People's United Financial, Inc. ................................................. 704,484
--------------
1,520,358
--------------
TOTAL INVESTMENTS - 98.6% ....................................................... 15,418,006
(Cost $15,285,135) (b)
NET OTHER ASSETS AND LIABILITIES - 1.4% ......................................... 225,991
--------------
NET ASSETS - 100.0% ............................................................. $ 15,643,997
==============
See Notes to Financial Statements Page 27
THE DOW(R) TARGET DIVIDEND PORTFOLIO
PORTFOLIO OF INVESTMENTS - (CONTINUED)
DECEMBER 31, 2012
-------------------------------------------------
(a) Non-income producing security.
(b) Aggregate cost for federal income tax purposes is $15,285,135. As of
December 31, 2012, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was
$789,746 and the aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over value was
$656,875.
VALUATION INPUTS
A summary of the inputs used to value the Portfolio's investments as of December
31, 2012 is as follows (see Note 2A - Portfolio Valuation in the Notes to
Financial Statements):
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
12/31/2012 PRICES INPUTS INPUTS
------------ ------------ ------------ ------------
Common Stocks*....................................... $ 15,418,006 $ 15,418,006 $ -- $ --
============ ============ ============ ============
* See Portfolio of Investments for industry breakout.
All transfers in and out of the Levels during the period are assumed to be on
the last day of the period at their current value. There were no transfers
between the Levels at December 31, 2012.
Page 28 See Notes to Financial Statements
GLOBAL DIVIDEND TARGET 15 PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - 96.9%
BERMUDA - 7.3%
1,594,000 COSCO Pacific Ltd. (a) .......................................................... $ 2,311,239
--------------
CHINA - 20.9%
5,003,000 Bank of China Ltd. (a) .......................................................... 2,265,770
3,090,000 Industrial & Commercial Bank of China Ltd. (a) .................................. 2,230,289
1,474,000 PetroChina Co., Ltd., Class H (a) ............................................... 2,126,489
--------------
6,622,548
--------------
HONG KONG - 11.4%
2,271,000 New World Development Co., Ltd. (a) ............................................. 3,595,389
--------------
UNITED KINGDOM - 26.2%
925,658 Ladbrokes PLC (a) ............................................................... 3,005,992
932,162 Man Group PLC (a) ............................................................... 1,278,464
1,130,776 RSA Insurance Group PLC (a) ..................................................... 2,335,256
667,281 Vodafone Group PLC (a) .......................................................... 1,679,732
--------------
8,299,444
--------------
UNITED STATES - 31.1%
61,015 AT&T, Inc. ...................................................................... 2,056,816
101,872 General Electric Co. ............................................................ 2,138,293
74,983 Intel Corp. ..................................................................... 1,546,899
16,309 Kraft Foods Group, Inc. ......................................................... 741,570
48,854 Mondelez International, Inc. .................................................... 1,244,312
84,792 Pfizer, Inc. .................................................................... 2,126,583
--------------
9,854,473
--------------
TOTAL INVESTMENTS - 96.9% ....................................................... 30,683,093
(Cost $27,912,503) (b)
NET OTHER ASSETS AND LIABILITIES - 3.1% ......................................... 965,928
--------------
NET ASSETS - 100.0% ............................................................. $ 31,649,021
==============
-------------------------------------------------
(a) This security is fair valued in accordance with the procedures adopted by
the Registrant's Board of Trustees and in accordance with the provisions
of the Investment Company Act of 1940, as amended.
(b) Aggregate cost for federal income tax purposes is $27,912,503. As of
December 31, 2012, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was
$4,340,653 and the aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over value was
$1,570,063.
See Notes to Financial Statements Page 29
GLOBAL DIVIDEND TARGET 15 PORTFOLIO
PORTFOLIO OF INVESTMENTS - (CONTINUED)
DECEMBER 31, 2012
VALUATION INPUTS
A summary of the inputs used to value the Portfolio's investments as of December
31, 2012 is as follows (see Note 2A - Portfolio Valuation in the Notes to
Financial Statements):
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
12/31/2012 PRICES INPUTS INPUTS
------------ ------------ ------------ ------------
Common Stocks:
Bermuda ........................................ $ 2,311,239 $ -- $ 2,311,239 $ --
China........................................... 6,622,548 -- 6,622,548 --
Hong Kong ...................................... 3,595,389 -- 3,595,389 --
United Kingdom.................................. 8,299,444 -- 8,299,444 --
United States................................... 9,854,473 9,854,473 -- --
------------ ------------ ------------ ------------
Total Common Stocks.................................. $ 30,683,093 $ 9,854,473 $ 20,828,620 $ --
============ ============ ============ ============
All transfers in and out of the Levels during the period are assumed to be
transferred on the last day of the period at their current value. As of December
31, 2012, the Portfolio transferred common stocks valued at $9,002,195 from
Level 1 to Level 2 of the fair value hierarchy. The common stocks that
transferred from Level 1 to Level 2 did so as a result of foreign equities that
were valued based on quoted prices at December 31, 2011 that are now being fair
valued using a factor provided by a pricing service due to the change in value
between the foreign markets' close and the New York Stock Exchange close on
December 31, 2012 exceeding a certain threshold. See Note 2A - Portfolio
Valuation in the Notes to Financial Statements.
INDUSTRY DIVERSIFICATION AS A PERCENTAGE OF NET ASSETS:
Commercial Banks ............................................ 14.2%
Real Estate Management & Development ........................ 11.4
Hotels, Restaurants & Leisure ............................... 9.5
Insurance ................................................... 7.4
Transportation Infrastructure ............................... 7.3
Industrial Conglomerates .................................... 6.7
Pharmaceuticals ............................................. 6.7
Oil, Gas & Consumable Fuels ................................. 6.7
Diversified Telecommunication Services ...................... 6.5
Food Products ............................................... 6.3
Wireless Telecommunication Services ......................... 5.3
Semiconductors & Semiconductor Equipment .................... 4.9
Capital Markets ............................................. 4.0
Net Other Assets and Liabilities ............................ 3.1
------
100.0%
======
Page 30 See Notes to Financial Statements
S&P(R) TARGET 24 PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - 98.1%
AEROSPACE & DEFENSE - 2.9%
3,005 General Dynamics Corp. .......................................................... $ 208,156
--------------
BEVERAGES - 6.4%
12,593 Coca-Cola (The) Co. ............................................................. 456,496
--------------
BIOTECHNOLOGY - 15.7%
7,536 Amgen, Inc. ..................................................................... 650,508
6,423 Gilead Sciences, Inc. (a) ....................................................... 471,769
--------------
1,122,277
--------------
COMMERCIAL SERVICES & SUPPLIES - 0.6%
1,093 Cintas Corp. .................................................................... 44,704
--------------
DIVERSIFIED CONSUMER SERVICES - 0.9%
3,198 Apollo Group, Inc., Class A (a) ................................................. 66,902
--------------
ELECTRIC UTILITIES - 1.7%
2,920 Southern Co. .................................................................... 125,005
--------------
ENERGY EQUIPMENT & SERVICES - 1.8%
3,063 Halliburton Co. ................................................................. 106,255
358 Helmerich & Payne, Inc. ......................................................... 20,052
--------------
126,307
--------------
INDUSTRIAL CONGLOMERATES - 7.7%
5,932 3M Co. .......................................................................... 550,786
--------------
INSURANCE - 14.1%
6,302 Chubb Corp. ..................................................................... 474,667
12,120 Marsh & McLennan Cos., Inc. ..................................................... 417,776
2,273 Torchmark Corp. ................................................................. 117,446
--------------
1,009,889
--------------
IT SERVICES - 13.8%
4,076 International Business Machines Corp. ........................................... 780,758
420 Mastercard, Inc., Class A ....................................................... 206,337
--------------
987,095
--------------
MULTI-UTILITIES - 1.8%
1,922 Dominion Resources, Inc. ........................................................ 99,560
781 Wisconsin Energy Corp. .......................................................... 28,780
--------------
128,340
--------------
MULTILINE RETAIL - 3.4%
5,928 Dollar Tree, Inc. (a) ........................................................... 240,440
--------------
OIL, GAS & CONSUMABLE FUELS - 10.0%
6,643 Chevron Corp. ................................................................... 718,374
--------------
PHARMACEUTICALS - 1.1%
2,311 Forest Laboratories, Inc. (a) ................................................... 81,625
--------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 5.1%
17,584 Intel Corp. ..................................................................... 362,758
--------------
See Notes to Financial Statements Page 31
S&P(R) TARGET 24 PORTFOLIO
PORTFOLIO OF INVESTMENTS - (CONTINUED)
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - (CONTINUED)
SPECIALTY RETAIL - 4.9%
987 AutoZone, Inc. (a) .............................................................. $ 349,822
--------------
TOBACCO - 6.2%
376 Lorillard, Inc. ................................................................. 43,868
4,825 Philip Morris International, Inc. ............................................... 403,563
--------------
447,431
--------------
TOTAL INVESTMENTS - 98.1% ....................................................... 7,026,407
(Cost $6,630,153) (b)
NET OTHER ASSETS AND LIABILITIES - 1.9% ......................................... 133,763
--------------
NET ASSETS - 100.0% ............................................................. $ 7,160,170
==============
-------------------------------------------------
(a) Non-income producing security.
(b) Aggregate cost for federal income tax purposes is $6,630,153. As of
December 31, 2012, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was
$602,495 and the aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over value was
$206,241.
VALUATION INPUTS
A summary of the inputs used to value the Portfolio's investments as of December
31, 2012 is as follows (see Note 2A - Portfolio Valuation in the Notes to
Financial Statements):
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
12/31/2012 PRICES INPUTS INPUTS
------------ ------------ ------------ ------------
Common Stocks*....................................... $ 7,026,407 $ 7,026,407 $ -- $ --
============ ============ ============ ============
* See Portfolio of Investments for industry breakout.
All transfers in and out of the Levels during the period are assumed to be on
the last day of the period at their current value. There were no transfers
between the Levels at December 31, 2012.
Page 32 See Notes to Financial Statements
NASDAQ(R) TARGET 15 PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - 98.9%
BEVERAGES - 4.9%
2,907 Monster Beverage Corp. (a) ...................................................... $ 153,722
--------------
BIOTECHNOLOGY - 20.8%
1,897 Biogen Idec, Inc. (a) ........................................................... 278,233
5,175 Gilead Sciences, Inc. (a) ....................................................... 380,104
--------------
658,337
--------------
COMPUTERS & PERIPHERALS - 8.7%
519 Apple, Inc. ..................................................................... 276,642
--------------
DIVERSIFIED CONSUMER SERVICES - 1.4%
2,184 Apollo Group, Inc., Class A (a) ................................................. 45,689
--------------
HEALTH CARE EQUIPMENT & SUPPLIES - 7.0%
451 Intuitive Surgical, Inc. (a) .................................................... 221,157
--------------
HOTELS, RESTAURANTS & LEISURE - 7.7%
4,518 Starbucks Corp. ................................................................. 242,255
--------------
LEISURE EQUIPMENT & PRODUCTS - 6.6%
5,662 Mattel, Inc. .................................................................... 207,342
--------------
MULTILINE RETAIL - 5.2%
4,055 Dollar Tree, Inc. (a) ........................................................... 164,471
--------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 9.8%
8,550 Intel Corp. ..................................................................... 176,387
2,816 KLA-Tencor Corp. ................................................................ 134,492
--------------
310,879
--------------
SOFTWARE - 6.8%
8,067 Microsoft Corp. ................................................................. 215,631
--------------
SPECIALTY RETAIL - 13.0%
3,581 Bed Bath & Beyond, Inc. (a) ..................................................... 200,214
3,895 Ross Stores, Inc. ............................................................... 210,914
--------------
411,128
--------------
TRADING COMPANIES & DISTRIBUTORS - 7.0%
4,736 Fastenal Co. .................................................................... 221,124
--------------
TOTAL INVESTMENTS - 98.9% ....................................................... 3,128,377
(Cost $3,102,673) (b)
NET OTHER ASSETS AND LIABILITIES - 1.1% ......................................... 34,187
--------------
NET ASSETS - 100.0% ............................................................. $ 3,162,564
==============
-------------------------------------------------
(a) Non-income producing security.
(b) Aggregate cost for federal income tax purposes is $3,102,673. As of
December 31, 2012, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was
$216,999 and the aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over value was
$191,295.
See Notes to Financial Statements Page 33
NASDAQ(R) TARGET 15 PORTFOLIO
PORTFOLIO OF INVESTMENTS - (CONTINUED)
DECEMBER 31, 2012
VALUATION INPUTS
A summary of the inputs used to value the Portfolio's investments as of December
31, 2012 is as follows (see Note 2A - Portfolio Valuation in the Notes to
Financial Statements):
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
12/31/2012 PRICES INPUTS INPUTS
------------ ------------ ------------ ------------
Common Stocks*....................................... $ 3,128,377 $ 3,128,377 $ -- $ --
============ ============ ============ ============
* See Portfolio of Investments for industry breakout.
All transfers in and out of the Levels during the period are assumed to be on
the last day of the period at their current value. There were no transfers
between the Levels at December 31, 2012.
Page 34 See Notes to Financial Statements
FIRST TRUST TARGET FOCUS FOUR PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - 97.3%
AEROSPACE & DEFENSE - 2.1%
872 AAR Corp. ....................................................................... $ 16,289
1,300 Northrop Grumman Corp. .......................................................... 87,854
258 Triumph Group, Inc. ............................................................. 16,847
--------------
120,990
--------------
AIRLINES - 0.9%
404 Alaska Air Group, Inc. (a) ...................................................... 17,408
6,470 JetBlue Airways Corp. (a) ....................................................... 36,944
--------------
54,352
--------------
AUTO COMPONENTS - 0.7%
747 Standard Motor Products, Inc. ................................................... 16,598
1,022 Superior Industries International, Inc. ......................................... 20,849
--------------
37,447
--------------
AUTOMOBILES - 0.4%
682 Honda Motor Co., Ltd., ADR ...................................................... 25,193
--------------
CAPITAL MARKETS - 0.8%
870 Credit Suisse Group AG, ADR ..................................................... 21,367
534 Deutsche Bank AG ................................................................ 23,651
--------------
45,018
--------------
CHEMICALS - 4.0%
471 CF Industries Holdings, Inc. .................................................... 95,688
761 Cytec Industries, Inc. .......................................................... 52,380
3,871 Olin Corp. ...................................................................... 83,575
--------------
231,643
--------------
COMMERCIAL BANKS - 12.1%
3,017 Associated Banc-Corp ............................................................ 39,583
2,730 Banco Santander S.A., ADR ....................................................... 22,304
1,874 Barclays PLC, ADR ............................................................... 32,458
3,020 BB&T Corp. ...................................................................... 87,912
2,241 Cathay General Bancorp .......................................................... 43,700
873 Columbia Banking System, Inc. ................................................... 15,662
6,728 F.N.B. Corp. .................................................................... 71,451
3,151 First Commonwealth Financial Corp. .............................................. 21,490
8,780 First Niagara Financial Group, Inc. ............................................. 69,625
5,007 FirstMerit Corp. ................................................................ 71,049
1,817 International Bancshares Corp. .................................................. 32,797
4,921 Mitsubishi UFJ Financial Group, Inc., ADR ....................................... 26,672
7,794 Mizuho Financial Group, Inc., ADR ............................................... 28,526
1,981 National Penn Bancshares, Inc. .................................................. 18,463
1,037 Pinnacle Financial Partners, Inc. (a) ........................................... 19,537
1,540 PrivateBancorp, Inc. ............................................................ 23,593
3,719 Sumitomo Mitsui Financial Group, Inc., ADR ...................................... 27,297
1,352 Umpqua Holdings Corp. ........................................................... 15,940
1,660 Webster Financial Corp. ......................................................... 34,113
--------------
702,172
--------------
See Notes to Financial Statements Page 35
FIRST TRUST TARGET FOCUS FOUR PORTFOLIO
PORTFOLIO OF INVESTMENTS - (CONTINUED)
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - (CONTINUED)
COMMERCIAL SERVICES & SUPPLIES - 2.3%
854 ACCO Brands Corp. (a) ........................................................... $ 6,268
5,303 R.R. Donnelley & Sons Co. ....................................................... 47,727
2,775 Republic Services, Inc. ......................................................... 81,391
--------------
135,386
--------------
COMMUNICATIONS EQUIPMENT - 0.3%
589 Black Box Corp. ................................................................. 14,336
--------------
COMPUTERS & PERIPHERALS - 1.8%
3,334 Seagate Technology PLC .......................................................... 101,620
--------------
DIVERSIFIED FINANCIAL SERVICES - 0.5%
2,863 ING Groep N.V., ADR (a) ......................................................... 27,170
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 8.6%
5,603 BCE, Inc. ....................................................................... 240,593
5,552 BT Group PLC, ADR ............................................................... 211,142
1,312 France Telecom S.A., ADR ........................................................ 14,498
820 Nippon Telegraph & Telephone Corp., ADR ......................................... 17,244
1,938 Telecom Italia SpA, ADR ......................................................... 17,539
--------------
501,016
--------------
ELECTRIC UTILITIES - 2.6%
1,844 American Electric Power Co., Inc. ............................................... 78,702
2,574 PPL Corp. ....................................................................... 73,694
--------------
152,396
--------------
ELECTRICAL EQUIPMENT - 0.7%
1,343 General Cable Corp. (a) ......................................................... 40,841
--------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS - 3.3%
911 Arrow Electronics, Inc. (a) ..................................................... 34,691
1,088 Avnet, Inc. (a) ................................................................. 33,304
1,159 Electro Scientific Industries, Inc. ............................................. 11,532
391 Hitachi Ltd., ADR ............................................................... 23,042
1,352 PC Connection, Inc. ............................................................. 15,548
559 SYNNEX Corp. (a) ................................................................ 19,218
3,751 Vishay Intertechnology, Inc. (a) ................................................ 39,873
888 Zygo Corp. (a) .................................................................. 13,941
--------------
191,149
--------------
ENERGY EQUIPMENT & SERVICES - 1.3%
2,163 Helix Energy Solutions Group, Inc. (a) .......................................... 44,644
731 Unit Corp. (a) .................................................................. 32,932
--------------
77,576
--------------
FOOD & STAPLES RETAILING - 0.5%
297 Casey's General Stores, Inc. .................................................... 15,771
576 Nash Finch Co. .................................................................. 12,257
--------------
28,028
--------------
Page 36 See Notes to Financial Statements
FIRST TRUST TARGET FOCUS FOUR PORTFOLIO
PORTFOLIO OF INVESTMENTS - (CONTINUED)
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - (CONTINUED)
FOOD PRODUCTS - 1.0%
2,552 Smithfield Foods, Inc. (a) ...................................................... $ 55,047
--------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.3%
768 Greatbatch, Inc. (a) ............................................................ 17,848
--------------
HEALTH CARE PROVIDERS & SERVICES - 2.7%
2,001 Community Health Systems, Inc. .................................................. 61,511
1,185 Humana, Inc. .................................................................... 81,326
1,451 Kindred Healthcare, Inc. (a) .................................................... 15,700
--------------
158,537
--------------
HOTELS, RESTAURANTS & LEISURE - 0.5%
2,284 Boyd Gaming Corp. (a) ........................................................... 15,166
1,319 Marcus Corp. .................................................................... 16,448
--------------
31,614
--------------
HOUSEHOLD DURABLES - 1.1%
561 Mohawk Industries, Inc. (a) ..................................................... 50,754
2,448 Panasonic Corp., ADR ............................................................ 14,859
--------------
65,613
--------------
INSURANCE - 1.9%
1,508 Protective Life Corp. ........................................................... 43,099
651 Reinsurance Group of America, Inc. .............................................. 34,842
932 StanCorp Financial Group, Inc. .................................................. 34,176
--------------
112,117
--------------
INTERNET SOFTWARE & SERVICES - 1.2%
2,255 AOL, Inc. ....................................................................... 66,771
--------------
IT SERVICES - 2.3%
2,659 Convergys Corp. ................................................................. 43,634
2,677 CoreLogic, Inc. (a) ............................................................. 72,065
448 NeuStar, Inc., Class A (a) ...................................................... 18,785
--------------
134,484
--------------
LEISURE EQUIPMENT & PRODUCTS - 1.5%
2,422 Mattel, Inc. .................................................................... 88,694
--------------
LIFE SCIENCES TOOLS & SERVICES - 0.4%
2,104 Cambrex Corp. (a) ............................................................... 23,944
--------------
MACHINERY - 2.5%
1,595 Oshkosh Corp. (a) ............................................................... 47,292
420 Sauer-Danfoss, Inc. ............................................................. 22,415
2,600 Terex Corp. (a) ................................................................. 73,086
--------------
142,793
--------------
MARINE - 0.4%
402 Kirby Corp. (a) ................................................................. 24,880
--------------
MEDIA - 1.3%
1,489 DISH Network Corp., Class A ..................................................... 54,200
2,030 Live Nation Entertainment, Inc. (a) ............................................. 18,899
--------------
73,099
--------------
See Notes to Financial Statements Page 37
FIRST TRUST TARGET FOCUS FOUR PORTFOLIO
PORTFOLIO OF INVESTMENTS - (CONTINUED)
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - (CONTINUED)
METALS & MINING - 3.8%
1,128 ArcelorMittal ................................................................... $ 19,706
2,032 Century Aluminum Co. (a) ........................................................ 17,800
5,548 Commercial Metals Co. ........................................................... 82,443
722 Olympic Steel, Inc. ............................................................. 15,985
250 POSCO, ADR ...................................................................... 20,538
702 Reliance Steel & Aluminum Co. ................................................... 43,594
959 Vale S.A., ADR .................................................................. 20,101
--------------
220,167
--------------
MULTI-UTILITIES - 5.6%
2,942 Avista Corp. .................................................................... 70,932
1,391 DTE Energy Co. .................................................................. 83,529
1,409 Integrys Energy Group, Inc. ..................................................... 73,578
1,383 Sempra Energy ................................................................... 98,110
--------------
326,149
--------------
MULTILINE RETAIL - 2.1%
3,080 Macy's, Inc. .................................................................... 120,182
--------------
OIL, GAS & CONSUMABLE FUELS - 11.5%
4,274 Chevron Corp. ................................................................... 462,190
194 China Petroleum & Chemical Corp., ADR ........................................... 22,295
1,113 Encana Corp. .................................................................... 21,993
496 Eni S.p.A., ADR ................................................................. 24,373
1,466 HollyFrontier Corp. ............................................................. 68,242
830 Petroleo Brasileiro S.A., ADR ................................................... 16,160
4,975 Quicksilver Resources, Inc. (a) ................................................. 14,229
1,652 Talisman Energy, Inc. ........................................................... 18,717
402 Total S.A., ADR ................................................................. 20,908
--------------
669,107
--------------
PAPER & FOREST PRODUCTS - 2.3%
422 Domtar Corp. .................................................................... 35,245
2,550 MeadWestvaco Corp. .............................................................. 81,269
460 Schweitzer-Mauduit International, Inc. .......................................... 17,954
--------------
134,468
--------------
PHARMACEUTICALS - 1.5%
3,528 Pfizer, Inc. .................................................................... 88,482
--------------
PROFESSIONAL SERVICES - 0.3%
1,235 Kelly Services, Inc., Class A ................................................... 19,439
--------------
REAL ESTATE INVESTMENT TRUSTS (REITS) - 1.9%
3,885 Cedar Realty Trust, Inc. ........................................................ 20,513
3,723 Kite Realty Group Trust ......................................................... 20,812
1,613 Pennsylvania Real Estate Investment Trust ....................................... 28,453
510 SL Green Realty Corp. ........................................................... 39,091
--------------
108,869
--------------
Page 38 See Notes to Financial Statements
FIRST TRUST TARGET FOCUS FOUR PORTFOLIO
PORTFOLIO OF INVESTMENTS - (CONTINUED)
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - (CONTINUED)
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.3%
1,121 Forestar Group, Inc. (a) ........................................................ $ 19,427
--------------
ROAD & RAIL - 0.2%
882 Arkansas Best Corp. ............................................................. 8,423
--------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 1.1%
1,459 Cohu, Inc. ...................................................................... 15,815
2,805 Fairchild Semiconductor International, Inc. (a) ................................. 40,392
2,096 STR Holdings, Inc. (a) .......................................................... 5,282
--------------
61,489
--------------
SPECIALTY RETAIL - 2.8%
528 Advance Auto Parts, Inc. ........................................................ 38,201
1,899 Brown Shoe Co., Inc. ............................................................ 34,884
245 Genesco, Inc. (a) ............................................................... 13,475
808 PetSmart, Inc. .................................................................. 55,219
1,035 Sonic Automotive, Inc., Class A ................................................. 21,621
--------------
163,400
--------------
THRIFTS & MORTGAGE FINANCE - 2.7%
8,873 Astoria Financial Corp. ......................................................... 83,051
5,931 People's United Financial, Inc. ................................................. 71,706
--------------
154,757
--------------
WIRELESS TELECOMMUNICATION SERVICES - 1.2%
1,130 NTT DoCoMo, Inc., ADR ........................................................... 16,283
1,429 Telephone & Data Systems, Inc. .................................................. 31,638
2,161 VimpelCom Ltd., ADR ............................................................. 22,669
--------------
70,590
--------------
TOTAL INVESTMENTS - 97.3% ....................................................... 5,646,723
(Cost $5,322,437) (b)
NET OTHER ASSETS AND LIABILITIES - 2.7% ......................................... 156,936
--------------
NET ASSETS - 100.0% ............................................................. $ 5,803,659
==============
-------------------------------------------------
(a) Non-income producing security.
(b) Aggregate cost for federal income tax purposes is $5,322,437. As of
December 31, 2012, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was
$669,666 and the aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over value was
$345,380.
ADR American Depositary Receipt
See Notes to Financial Statements Page 39
FIRST TRUST TARGET FOCUS FOUR PORTFOLIO
PORTFOLIO OF INVESTMENTS - (CONTINUED)
DECEMBER 31, 2012
VALUATION INPUTS
A summary of the inputs used to value the Portfolio's investments as of December
31, 2012 is as follows (see Note 2A - Portfolio Valuation in the Notes to
Financial Statements):
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
12/31/2012 PRICES INPUTS INPUTS
------------ ------------ ------------ ------------
Common Stocks*....................................... $ 5,646,723 $ 5,646,723 $ -- $ --
============ ============ ============ ============
* See Portfolio of Investments for industry breakout.
All transfers in and out of the Levels during the period are assumed to be on
the last day of the period at their current value. There were no transfers
between the Levels at December 31, 2012.
COUNTRY DIVERSIFICATION AS A PERCENTAGE OF NET ASSETS:
United States .............................................. 78.4%
Canada ..................................................... 4.8
United Kingdom ............................................. 4.2
Japan ...................................................... 3.1
Ireland .................................................... 1.7
Italy ...................................................... 0.7
Brazil ..................................................... 0.6
France ..................................................... 0.6
Netherlands ................................................ 0.5
Bermuda .................................................... 0.4
China ...................................................... 0.4
Germany .................................................... 0.4
Korea ...................................................... 0.4
Spain ...................................................... 0.4
Switzerland ................................................ 0.4
Luxembourg ................................................. 0.3
Net Other Assets and Liabilities ........................... 2.7
------
100.0%
======
Page 40 See Notes to Financial Statements
VALUE LINE(R) TARGET 25 PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - 98.2%
AEROSPACE & DEFENSE - 2.4%
2,329 Triumph Group, Inc. ............................................................. $ 152,084
--------------
AIRLINES - 2.3%
3,357 Alaska Air Group, Inc. (a) ...................................................... 144,653
--------------
AUTO COMPONENTS - 0.9%
2,514 Standard Motor Products, Inc. ................................................... 55,861
--------------
CHEMICALS - 8.7%
2,684 CF Industries Holdings, Inc. .................................................... 545,282
--------------
COMPUTERS & PERIPHERALS - 10.6%
21,910 Seagate Technology PLC .......................................................... 667,817
--------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 14.3%
9,401 BCE, Inc. ....................................................................... 403,679
13,002 BT Group PLC, ADR ............................................................... 494,466
--------------
898,145
--------------
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS - 1.6%
4,553 PC Connection, Inc. ............................................................. 52,360
2,990 Zygo Corp. (a) .................................................................. 46,943
--------------
99,303
--------------
FOOD & STAPLES RETAILING - 1.5%
1,821 Casey's General Stores, Inc. .................................................... 96,695
--------------
FOOD PRODUCTS - 2.6%
7,637 Smithfield Foods, Inc. (a) ...................................................... 164,730
--------------
HEALTH CARE PROVIDERS & SERVICES - 4.8%
4,380 Humana, Inc. .................................................................... 300,599
--------------
IT SERVICES - 2.3%
3,428 NeuStar, Inc., Class A (a) ...................................................... 143,736
--------------
LEISURE EQUIPMENT & PRODUCTS - 8.1%
13,839 Mattel, Inc. .................................................................... 506,784
--------------
LIFE SCIENCES TOOLS & SERVICES - 1.3%
7,080 Cambrex Corp. (a) ............................................................... 80,570
--------------
MACHINERY - 1.9%
2,282 Sauer-Danfoss, Inc. ............................................................. 121,790
--------------
MARINE - 2.6%
2,638 Kirby Corp. (a).................................................................. 163,266
--------------
MEDIA - 5.7%
9,780 DISH Network Corp., Class A ..................................................... 355,992
--------------
MULTILINE RETAIL - 7.4%
11,897 Macy's, Inc. .................................................................... 464,221
--------------
OIL, GAS & CONSUMABLE FUELS - 6.2%
3,596 Chevron Corp. ................................................................... 388,872
--------------
See Notes to Financial Statements Page 41
VALUE LINE(R) TARGET 25 PORTFOLIO
PORTFOLIO OF INVESTMENTS - (CONTINUED)
DECEMBER 31, 2012
SHARES DESCRIPTION VALUE
----------- --------------------------------------------------------------------------------- --------------
COMMON STOCKS - (CONTINUED)
PAPER & FOREST PRODUCTS - 1.0%
1,547 Schweitzer-Mauduit International, Inc. .......................................... $ 60,379
--------------
SPECIALTY RETAIL - 12.0%
3,469 Advance Auto Parts, Inc. ........................................................ 250,982
1,149 Genesco, Inc. (a) ............................................................... 63,195
5,313 PetSmart, Inc. .................................................................. 363,090
3,484 Sonic Automotive, Inc. .......................................................... 72,781
--------------
750,048
--------------
TOTAL INVESTMENTS - 98.2% ....................................................... 6,160,827
(Cost $5,266,985) (b)
NET OTHER ASSETS AND LIABILITIES - 1.8% ......................................... 115,669
--------------
NET ASSETS - 100.0% ............................................................. $ 6,276,496
==============
-------------------------------------------------
(a) Non-income producing security.
(b) Aggregate cost for federal income tax purposes is $5,266,985. As of
December 31, 2012, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was
$1,038,464 and the aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over value was
$144,622.
ADR American Depositary Receipt
VALUATION INPUTS
A summary of the inputs used to value the Portfolio's investments as of December
31, 2012 is as follows (see Note 2A - Portfolio Valuation in the Notes to
Financial Statements):
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
12/31/2012 PRICES INPUTS INPUTS
------------ ------------ ------------ ------------
Common Stocks*....................................... $ 6,160,827 $ 6,160,827 $ -- $ --
============ ============ ============ ============
* See Portfolio of Investments for industry breakout.
All transfers in and out of the Levels during the period are assumed to be on
the last day of the period at their current value. There were no transfers
between the Levels at December 31, 2012.
Page 42 See Notes to Financial Statements
This Page Left Blank Intentionally.
FIRST DEFINED PORTFOLIO FUND, LLC
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2012
THE DOW(R) GLOBAL
TARGET THE DOW(R) TARGET DIVIDEND
MANAGED VIP DART 10 DIVIDEND TARGET 15
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- ------------ ------------
ASSETS:
Investments, at value (1)................................... $ 17,999,635 $ 6,474,538 $ 15,418,006 $ 30,683,093
Cash........................................................ 368,031 -- 256,611 935,794
Prepaid expenses............................................ 441 152 378 640
Receivables:
Investment securities sold.............................. 66,558 99,902 -- --
Dividends............................................... 22,432 3,125 32,369 152,532
Membership Interests purchased.......................... -- 310 -- --
From Investment Advisor................................. -- -- -- --
------------ ----------- ------------ ------------
Total Assets............................................ 18,457,097 6,578,027 15,707,364 31,772,059
------------ ----------- ------------ ------------
LIABILITIES:
Payables:
Audit fees.............................................. 17,000 17,000 17,000 17,000
Membership Interest servicing fees...................... 15,622 5,563 13,461 24,769
Investment advisory fees................................ 12,497 4,495 14,333 28,113
Membership Interests redeemed........................... 2,768 -- 7,387 34,756
Printing fees........................................... 3,458 3,452 3,457 3,460
Custodian fees.......................................... 5,364 1,697 2,365 3,974
12b-1 service fees...................................... 3,907 1,429 3,337 6,588
Due to custodian........................................ -- 6,335 -- --
Licensing fees.......................................... 4,327 851 -- --
Administrative fees..................................... 1,266 463 1,081 2,134
Legal fees.............................................. 657 267 570 923
Trustees' fees and expenses............................. 38 10 35 2
Other liabilities........................................... 1,051 288 341 1,319
------------ ----------- ------------ ------------
Total Liabilities....................................... 67,955 41,850 63,367 123,038
------------ ----------- ------------ ------------
NET ASSETS.................................................. $ 18,389,142 $ 6,536,177 $ 15,643,997 $ 31,649,021
============ =========== ============ ============
(1) Investments, at cost.................................... $ 16,245,012 $ 5,891,146 $ 15,285,135 $ 27,912,503
============ =========== ============ ============
NET ASSETS CONSIST OF:
Paid-in capital............................................. $ 16,634,519 $ 5,952,785 $ 15,511,126 $ 28,877,752
Net unrealized appreciation (depreciation) on investments and
foreign currency translation............................. 1,754,623 583,392 132,871 2,771,269
------------ ----------- ------------ ------------
NET ASSETS.................................................. $ 18,389,142 $ 6,536,177 $ 15,643,997 $ 31,649,021
============ =========== ============ ============
NET ASSET VALUE, offering price and redemption price of
Membership Interests outstanding (Net Assets/Membership
Interests outstanding)................................... $ 10.59 $ 12.06 $ 10.43 $ 24.61
============ =========== ============ ============
Number of Membership Interests outstanding.................. 1,736,365 541,766 1,500,048 1,286,109
============ =========== ============ ============
Page 44 See Notes to Financial Statements
FIRST TRUST
S&P(R) NASDAQ(R) TARGET VALUE LINE(R)
TARGET 24 TARGET 15 FOCUS FOUR TARGET 25
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------
$ 7,026,407 $ 3,128,377 $ 5,646,723 $ 6,160,827
144,825 11,564 -- 84,276
178 88 135 148
-- 49,538 199,531 59,986
6,685 -- 12,704 15,570
19,980 -- -- --
-- 686 -- --
------------ ------------ ------------ ------------
7,198,075 3,190,253 5,859,093 6,320,807
------------ ------------ ------------ ------------
17,000 17,000 17,000 17,000
6,224 2,962 4,923 5,303
5,651 -- 7,474 5,751
-- 168 6,223 5,638
3,453 3,451 3,452 3,452
2,853 2,664 4,369 2,462
1,531 692 1,246 1,331
-- -- 6,814 --
-- -- 2,140 2,271
496 224 404 431
299 181 241 261
14 14 11 16
384 333 1,137 395
------------ ------------ ------------ ------------
37,905 27,689 55,434 44,311
------------ ------------ ------------ ------------
$ 7,160,170 $ 3,162,564 $ 5,803,659 $ 6,276,496
============ ============ ============ ============
$ 6,630,153 $ 3,102,673 $ 5,322,437 $ 5,266,985
============ ============ ============ ============
$ 6,763,916 $ 3,136,860 $ 5,479,373 $ 5,382,654
396,254 25,704 324,286 893,842
------------ ------------ ------------ ------------
$ 7,160,170 $ 3,162,564 $ 5,803,659 $ 6,276,496
============ ============ ============ ============
$ 11.24 $ 10.61 $ 5.02 $ 3.41
============ ============ ============ ============
636,932 298,177 1,156,406 1,840,390
============ ============ ============ ============
See Notes to Financial Statements Page 45
FIRST DEFINED PORTFOLIO FUND, LLC
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2012
THE DOW(R) GLOBAL
TARGET THE DOW(R) TARGET DIVIDEND
MANAGED VIP DART 10 DIVIDEND TARGET 15
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- ------------ ------------
INVESTMENT INCOME:
Dividends................................................... $ 559,632 $ 175,471 $ 752,659 $ 1,353,829
Interest.................................................... 141 75 216 331
Foreign withholding tax on dividend income.................. (39,857) -- -- (25,690)
------------ ----------- ------------ ------------
Total investment income.................................. 519,916 175,546 752,875 1,328,470
------------ ----------- ------------ ------------
EXPENSES:
Investment advisory fees.................................... 119,690 42,033 112,947 171,900
Membership Interest servicing fees.......................... 69,060 24,415 65,543 98,981
12b-1 service fees.......................................... 49,871 17,514 47,061 71,625
Audit fees.................................................. 17,266 17,266 17,266 17,266
Custodian fees.............................................. 20,658 6,953 9,954 15,930
Administrative fees......................................... 16,158 5,674 15,248 23,206
Licensing fees.............................................. 17,340 2,757 10,000 --
Printing fees............................................... 6,207 6,122 6,203 6,248
Trustees' fees and expenses................................. 4,985 4,341 4,906 5,367
Legal fees.................................................. 5,975 2,370 5,694 8,573
Other....................................................... 7,477 1,914 3,565 13,228
------------ ----------- ------------ ------------
Total expenses........................................... 334,687 131,359 298,387 432,324
Fees waived or expenses reimbursed by the investment
advisor (41,448) (28,385) (21,677) (11,173)
------------ ----------- ------------ ------------
Net expenses................................................ 293,239 102,974 276,710 421,151
------------ ----------- ------------ ------------
NET INVESTMENT INCOME (LOSS)................................ 226,677 72,572 476,165 907,319
------------ ----------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments.............................................. 450,530 523,119 1,235,662 (798,326)
Foreign currency transactions............................ -- -- -- 10,536
------------ ----------- ------------ ------------
Net realized gain (loss).................................... 450,530 523,119 1,235,662 (787,790)
------------ ----------- ------------ ------------
Net change in unrealized appreciation (depreciation) on:
Investments.............................................. 1,802,786 116,508 (808,234) 5,930,970
Foreign currency translation............................. -- -- -- 1,879
------------ ----------- ------------ ------------
Net change in unrealized appreciation (depreciation)........ 1,802,786 116,508 (808,234) 5,932,849
------------ ----------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)..................... 2,253,316 639,627 427,428 5,145,059
------------ ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS.......................................... $ 2,479,993 $ 712,199 $ 903,593 $ 6,052,378
============ =========== ============ ============
Page 46 See Notes to Financial Statements
FIRST TRUST
S&P(R) NASDAQ(R) TARGET VALUE LINE(R)
TARGET 24 TARGET 15 FOCUS FOUR TARGET 25
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------
$ 172,139 $ 51,690 $ 186,408 $ 162,650
80 46 67 50
-- -- (5,287) (3,621)
------------ ------------ ------------ ------------
172,219 51,736 181,188 159,079
------------ ------------ ------------ ------------
48,821 26,475 38,902 41,771
28,288 15,371 22,384 24,090
20,342 11,031 16,209 17,405
17,266 17,266 17,266 17,266
11,395 9,580 14,241 11,253
6,591 3,574 5,252 5,639
5,000 5,000 4,137 5,818
6,134 6,110 6,123 6,121
4,398 4,220 4,313 4,346
2,638 1,582 2,019 2,197
3,075 1,925 7,351 3,127
------------ ------------ ------------ ------------
153,948 102,134 138,197 139,033
(34,343) (37,272) (49,375) (36,694)
------------ ------------ ------------ ------------
119,605 64,862 88,822 102,339
------------ ------------ ------------ ------------
52,614 (13,126) 92,366 56,740
------------ ------------ ------------ ------------
481,797 401,440 (528,640) (1,555,791)
-- -- -- --
------------ ------------ ------------ ------------
481,797 401,440 (528,640) (1,555,791)
------------ ------------ ------------ ------------
187,293 192,956 1,275,528 2,882,693
-- -- -- --
------------ ------------ ------------ ------------
187,293 192,956 1,275,528 2,882,693
------------ ------------ ------------ ------------
669,090 594,396 746,888 1,326,902
------------ ------------ ------------ ------------
$ 721,704 $ 581,270 $ 839,254 $ 1,383,642
============ ============ ============ ============
See Notes to Financial Statements Page 47
FIRST DEFINED PORTFOLIO FUND, LLC
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2012
THE DOW(R) GLOBAL
TARGET THE DOW(R) TARGET DIVIDEND
MANAGED VIP DART 10 DIVIDEND TARGET 15
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- ------------ ------------
OPERATIONS:
Net investment income (loss)................................ $ 226,677 $ 72,572 $ 476,165 $ 907,319
Net realized gain (loss).................................... 450,530 523,119 1,235,662 (787,790)
Net change in unrealized appreciation (depreciation)........ 1,802,786 116,508 (808,234) 5,932,849
------------ ----------- ------------ ------------
Net increase (decrease) in net assets resulting from
operations .............................................. 2,479,993 712,199 903,593 6,052,378
Net increase (decrease) in net assets from Membership
Interest transactions.................................... (4,104,172) (946,372) (7,000,511) 995,079
------------ ----------- ------------ ------------
Net increase (decrease) in net assets....................... (1,624,179) (234,173) (6,096,918) 7,047,457
NET ASSETS:
Beginning of period......................................... 20,013,321 6,770,350 21,740,915 24,601,564
------------ ----------- ------------ ------------
End of period............................................... $ 18,389,142 $ 6,536,177 $ 15,643,997 $ 31,649,021
============ =========== ============ ============
FIRST DEFINED PORTFOLIO FUND, LLC
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2011
THE DOW(R) GLOBAL
TARGET THE DOW(R) TARGET DIVIDEND
MANAGED VIP DART 10 DIVIDEND TARGET 15
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- ------------ ------------
OPERATIONS:
Net investment income (loss)................................ $ 141,280 $ 91,453 $ 610,462 $ 1,061,320
Net realized gain (loss).................................... 3,394,940 531,384 1,635,495 1,020,452
Net change in unrealized appreciation (depreciation)........ (4,040,729) (189,934) (1,255,506) (4,668,514)
------------ ----------- ------------ ------------
Net increase (decrease) in net assets resulting from
operations .............................................. (504,509) 432,903 990,451 (2,586,742)
Net increase (decrease) in net assets from Membership
Interest transactions.................................... (7,322,490) (459,328) (1,530,236) (9,300,804)
------------ ----------- ------------ ------------
Net increase (decrease) in net assets....................... (7,826,999) (26,425) (539,785) (11,887,546)
NET ASSETS:
Beginning of period......................................... 27,840,320 6,796,775 22,280,700 36,489,110
------------ ----------- ------------ ------------
End of period............................................... $ 20,013,321 $ 6,770,350 $ 21,740,915 $ 24,601,564
============ =========== ============ ============
Page 48 See Notes to Financial Statements
FIRST TRUST
S&P(R) NASDAQ(R) TARGET VALUE LINE(R)
TARGET 24 TARGET 15 FOCUS FOUR TARGET 25
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------
$ 52,614 $ (13,126) $ 92,366 $ 56,740
481,797 401,440 (528,640) (1,555,791)
187,293 192,956 1,275,528 2,882,693
------------ ------------ ------------ ------------
721,704 581,270 839,254 1,383,642
(2,749,729) (1,822,177) (2,041,246) (2,242,040)
------------ ------------ ------------ ------------
(2,028,025) (1,240,907) (1,201,992) (858,398)
9,188,195 4,403,471 7,005,651 7,134,894
------------ ------------ ------------ ------------
$ 7,160,170 $ 3,162,564 $ 5,803,659 $ 6,276,496
============ ============ ============ ============
FIRST TRUST
S&P(R) NASDAQ(R) TARGET VALUE LINE(R)
TARGET 24 TARGET 15 FOCUS FOUR TARGET 25
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------
$ 15,328 $ (60,391) $ 81,684 $ (112,169)
1,536,111 1,341,288 843,673 2,583,438
(1,037,348) (1,162,853) (2,371,729) (4,963,046)
------------ ------------ ------------ ------------
514,091 118,044 (1,446,372) (2,491,777)
(821,473) (3,416,639) (2,263,449) (2,975,546)
------------ ------------ ------------ ------------
(307,382) (3,298,595) (3,709,821) (5,467,323)
9,495,577 7,702,066 10,715,472 12,602,217
------------ ------------ ------------ ------------
$ 9,188,195 $ 4,403,471 $ 7,005,651 $ 7,134,894
============ ============ ============ ============
See Notes to Financial Statements Page 49
FIRST DEFINED PORTFOLIO FUND, LLC
STATEMENTS OF CHANGES IN NET ASSETS - MEMBERSHIP INTEREST ACTIVITY
FOR THE YEAR ENDED DECEMBER 31, 2012
THE DOW(R) GLOBAL
TARGET THE DOW(R) TARGET DIVIDEND
MANAGED VIP DART 10 DIVIDEND TARGET 15
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- ------------ ------------
AMOUNT:
Sold........................................................ $ 1,426,483 $ 2,453,000 $ 13,404,424 $ 7,751,800
Redeemed.................................................... (5,530,655) (3,399,372) (20,404,935) (6,756,721)
------------ ----------- ------------ ------------
Net increase (decrease)..................................... $ (4,104,172) $ (946,372) $ (7,000,511) $ 995,079
============ =========== ============ ============
MEMBERSHIP INTEREST:
Sold........................................................ 139,952 211,056 1,322,448 340,327
Redeemed.................................................... (540,567) (291,123) (2,022,744) (307,703)
------------ ----------- ------------ ------------
Net increase (decrease)..................................... (400,615) (80,067) (700,296) 32,624
============ =========== ============ ============
FIRST DEFINED PORTFOLIO FUND, LLC
STATEMENTS OF CHANGES IN NET ASSETS - MEMBERSHIP INTEREST ACTIVITY
FOR THE YEAR ENDED DECEMBER 31, 2011
THE DOW(R) GLOBAL
TARGET THE DOW(R) TARGET DIVIDEND
MANAGED VIP DART 10 DIVIDEND TARGET 15
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- ------------ ------------
AMOUNT:
Sold........................................................ $ 4,870,316 $ 3,185,931 $ 9,728,762 $ 4,598,742
Redeemed.................................................... (12,192,806) (3,645,259) (11,258,998) (13,899,546)
------------ ----------- ------------ ------------
Net increase (decrease)..................................... $ (7,322,490) $ (459,328) $(1,530,236) $ (9,300,804)
============ =========== ============ ============
MEMBERSHIP INTEREST:
Sold........................................................ 491,466 305,684 1,021,990 220,784
Redeemed.................................................... (1,275,953) (356,210) (1,213,083) (686,959)
------------ ----------- ------------ ------------
Net increase (decrease)..................................... (784,487) (50,526) (191,093) (466,175)
============ =========== ============ ============
Page 50 See Notes to Financial Statements
FIRST TRUST
S&P(R) NASDAQ(R) TARGET VALUE LINE(R)
TARGET 24 TARGET 15 FOCUS FOUR TARGET 25
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------
$ 2,639,871 $ 2,802,764 $ 736,999 $ 298,475
(5,389,600) (4,624,941) (2,778,245) (2,540,515)
------------ ------------ ------------ ------------
$ (2,749,729) $ (1,822,177) $ (2,041,246) $ (2,242,040)
============ ============ ============ ============
237,623 252,285 157,116 96,695
(495,013) (422,824) (590,528) (796,356)
------------ ------------ ------------ ------------
(257,390) (170,539) (433,412) (699,661)
============ ============ ============ ============
FIRST TRUST
S&P(R) NASDAQ(R) TARGET VALUE LINE(R)
TARGET 24 TARGET 15 FOCUS FOUR TARGET 25
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------
$ 9,210,189 $ 3,641,426 $ 5,467,132 $ 1,768,615
(10,031,662) (7,058,065) (7,730,581) (4,744,161)
------------ ------------ ------------ ------------
$ (821,473) $ (3,416,639) $ (2,263,449) $ (2,975,546)
============ ============ ============ ============
903,545 358,143 1,120,376 534,953
(1,013,467) (720,325) (1,696,406) (1,374,189)
------------ ------------ ------------ ------------
(109,922) (362,182) (576,030) (839,236)
============ ============ ============ ============
See Notes to Financial Statements Page 51
TARGET MANAGED VIP PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/12 12/31/11 12/31/10 12/31/09 12/31/08
---------- ---------- ---------- ---------- ----------
Net asset value, beginning of period $ 9.37 $ 9.53 $ 8.00 $ 7.08 $ 12.83
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (a) .............. 0.12 0.05 0.07 0.06 0.08
Net realized and unrealized gain (loss) ....... 1.10 (0.21) 1.46 0.86 (5.83)
---------- ---------- ---------- ---------- ----------
Total from investment operations .............. 1.22 (0.16) 1.53 0.92 (5.75)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ................ $ 10.59 $ 9.37 $ 9.53 $ 8.00 $ 7.08
========== ========== ========== ========== ==========
Total return (b) (c) .......................... 13.02% (1.68)% 19.13% 12.99% (44.82)%
========== ========== ========== ========== ==========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .......... $ 18,389 $ 20,013 $ 27,840 $ 31,149 $ 32,281
Ratio of expenses to average net assets without
fee waivers and expenses reimbursed ........ 1.68% 1.69% 1.70% 1.66% 1.51%
Ratio of expenses to average net assets ....... 1.47% 1.47% 1.47% 1.47% 1.47%
Ratio of net investment income (loss) to
average net assets ......................... 1.14% 0.55% 0.81% 0.82% 0.75%
Portfolio turnover rate ....................... 72% 89% 101% 111% 155%
-----------------------------
(a) Per Membership Interest values have been calculated using the average
share method.
(b) Total return is not annualized for periods less than one year. The returns
for the Portfolio do not reflect the deduction of expenses associated with
variable products, such as mortality and expense risk charges, and sales
charges. These expenses would reduce the overall returns shown.
(c) The total return would have been lower if certain fees had not been waived
and expenses reimbursed by the investment advisor.
Page 52 See Notes to Financial Statements
THE DOW(R) DART 10 PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/12 12/31/11 12/31/10 12/31/09 12/31/08
---------- ---------- ---------- ---------- ----------
Net asset value, beginning of period .......... $ 10.89 $ 10.11 $ 8.66 $ 7.60 $ 10.63
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (a) .............. 0.12 0.17 0.20 0.14 0.13
Net realized and unrealized gain (loss) ....... 1.05 0.61 1.25 0.92 (3.16)
---------- ---------- ---------- ---------- ----------
Total from investment operations .............. 1.17 0.78 1.45 1.06 (3.03)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ................ $ 12.06 $ 10.89 $ 10.11 $ 8.66 $ 7.60
========== ========== ========== ========== ==========
Total return (b) (c) .......................... 10.74% 7.72% 16.74% 13.95% (28.50)%
========== ========== ========== ========== ==========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .......... $ 6,536 $ 6,770 $ 6,797 $ 5,447 $ 7,081
Ratio of expenses to average net assets without
fee waivers and expenses reimbursed ........ 1.88% 1.96% 2.09% 2.13% 1.81%
Ratio of expenses to average net assets ....... 1.47% 1.47% 1.47% 1.47% 1.47%
Ratio of net investment income (loss) to
average net assets ......................... 1.04% 1.61% 2.24% 2.00% 1.42%
Portfolio turnover rate ....................... 77% 95% 104% 108% 105%
-----------------------------
(a) Per Membership Interest values have been calculated using the average
share method.
(b) Total return is not annualized for periods less than one year. The returns
for the Portfolio do not reflect the deduction of expenses associated with
variable products, such as mortality and expense risk charges, and sales
charges. These expenses would reduce the overall returns shown.
(c) The total return would have been lower if certain fees had not been waived
and expenses reimbursed by the investment advisor.
See Notes to Financial Statements Page 53
THE DOW(R) TARGET DIVIDEND PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/12 12/31/11 12/31/10 12/31/09 12/31/08
---------- ---------- ---------- ---------- ----------
Net asset value, beginning of period .......... $ 9.88 $ 9.32 $ 8.00 $ 7.01 $ 11.79
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (a) .............. 0.26 0.28 0.24 0.18 0.28
Net realized and unrealized gain (loss) ....... 0.29 0.28 1.08 0.81 (5.06)
---------- ---------- ---------- ---------- ----------
Total from investment operations .............. 0.55 0.56 1.32 0.99 (4.78)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ................ $ 10.43 $ 9.88 $ 9.32 $ 8.00 $ 7.01
========== ========== ========== ========== ==========
Total return (b) (c) .......................... 5.57% 6.01% 16.50% 14.12% (40.54)%
========== ========== ========== ========== ==========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .......... $ 15,644 $ 21,741 $ 22,281 $ 22,557 $ 20,369
Ratio of expenses to average net assets without
fee waivers and expenses reimbursed ........ 1.59% 1.58% 1.60% 1.67% 1.47%
Ratio of expenses to average net assets ....... 1.47% 1.47% 1.47% 1.47% 1.47%
Ratio of net investment income (loss) to
average net assets ......................... 2.53% 2.92% 2.77% 2.83% 2.76%
Portfolio turnover rate ....................... 145% 107% 104% 109% 172%
-----------------------------
(a) Per Membership Interest values have been calculated using the average
share method.
(b) Total return is not annualized for periods less than one year. The returns
for the Portfolio do not reflect the deduction of expenses associated with
variable products, such as mortality and expense risk charges, and sales
charges. These expenses would reduce the overall returns shown.
(c) The total return would have been lower if certain fees had not been waived
and expenses reimbursed by the investment advisor.
Page 54 See Notes to Financial Statements
GLOBAL DIVIDEND TARGET 15 PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/12 12/31/11 12/31/10 12/31/09 12/31/08
---------- ---------- ---------- ---------- ----------
Net asset value, beginning of period .......... $ 19.63 $ 21.22 $ 19.34 $ 13.71 $ 23.96
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (a) .............. 0.71 0.71 0.52 0.11 0.72
Net realized and unrealized gain (loss) ....... 4.27 (2.30) 1.36 5.52 (10.97)
---------- ---------- ---------- ---------- ----------
Total from investment operations .............. 4.98 (1.59) 1.88 5.63 (10.25)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ................ $ 24.61 $ 19.63 $ 21.22 $ 19.34 $ 13.71
========== ========== ========== ========== ==========
Total return (b) (c) .......................... 25.37% (7.49)% 9.72% 41.06% (42.78)%
========== ========== ========== ========== ==========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .......... $ 31,649 $ 24,602 $ 36,489 $ 46,885 $ 36,063
Ratio of expenses to average net assets without
fee waivers and expenses reimbursed ........ 1.51% 1.54% 1.53% 1.53% 1.53%
Ratio of expenses to average net assets ....... 1.47% 1.47% 1.47% 1.47% 1.47%
Ratio of net investment income (loss) to
average net assets ......................... 3.17% 3.39% 2.69% 0.71% 3.47%
Portfolio turnover rate ....................... 59% 47% 123% 84% 105%
-----------------------------
(a) Per Membership Interest values have been calculated using the average
share method.
(b) Total return is not annualized for periods less than one year. The returns
for the Portfolio do not reflect the deduction of expenses associated with
variable products, such as mortality and expense risk charges, and sales
charges. These expenses would reduce the overall returns shown.
(c) The total return would have been lower if certain fees had not been waived
and expenses reimbursed by the investment advisor.
See Notes to Financial Statements Page 55
S&P(R) TARGET 24 PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/12 12/31/11 12/31/10 12/31/09 12/31/08
---------- ---------- ---------- ---------- ----------
Net asset value, beginning of period .......... $ 10.27 $ 9.46 $ 7.93 $ 6.97 $ 9.66
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .................. 0.07 (a) 0.02 (a) 0.04 (a) 0.07 (a) 0.01
Net realized and unrealized gain (loss) ....... 0.90 0.79 1.49 0.89 (2.70)
---------- ---------- ---------- ---------- ----------
Total from investment operations .............. 0.97 0.81 1.53 0.96 (2.69)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ................ $ 11.24 $ 10.27 $ 9.46 $ 7.93 $ 6.97
========== ========== ========== ========== ==========
Total return (b) (c) .......................... 9.45% 8.56% 19.29% 13.77% (27.85)%
========== ========== ========== ========== ==========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .......... $ 7,160 $ 9,188 $ 9,496 $ 9,292 $ 7,758
Ratio of expenses to average net assets without
fee waivers and expenses reimbursed ........ 1.89% 1.81% 1.95% 2.07% 1.83%
Ratio of expenses to average net assets ....... 1.47% 1.47% 1.47% 1.47% 1.47%
Ratio of net investment income (loss) to
average net assets ......................... 0.65% 0.16% 0.46% 0.97% 0.10%
Portfolio turnover rate ....................... 115% 161% 135% 142% 202%
-----------------------------
(a) Per Membership Interest values have been calculated using the average
share method.
(b) Total return is not annualized for periods less than one year. The returns
for the Portfolio do not reflect the deduction of expenses associated with
variable products, such as mortality and expense risk charges, and sales
charges. These expenses would reduce the overall returns shown.
(c) The total return would have been lower if certain fees had not been waived
and expenses reimbursed by the investment advisor.
Page 56 See Notes to Financial Statements
NASDAQ(R) TARGET 15 PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/12 12/31/11 12/31/10 12/31/09 12/31/08
---------- ---------- ---------- ---------- ----------
Net asset value, beginning of period .......... $ 9.39 $ 9.27 $ 7.11 $ 6.08 $ 12.38
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (a) .............. (0.03) (0.10) 0.12 (0.04) (0.07)
Net realized and unrealized gain (loss) ....... 1.25 0.22 2.04 1.07 (6.23)
---------- ---------- ---------- ---------- ----------
Total from investment operations .............. 1.22 0.12 2.16 1.03 (6.30)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ................ $ 10.61 $ 9.39 $ 9.27 $ 7.11 $ 6.08
========== ========== ========== ========== ==========
Total return (b) (c) .......................... 12.99% 1.29% 30.38% 16.94% (50.89)%
========== ========== ========== ========== ==========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .......... $ 3,163 $ 4,403 $ 7,702 $ 2,821 $ 3,177
Ratio of expenses to average net assets without
fee waivers and expenses reimbursed ........ 2.31% 2.01% 2.49% 2.93% 2.13%
Ratio of expenses to average net assets ....... 1.47% 1.47% 1.47% 1.47% 1.47%
Ratio of net investment income (loss) to
average net assets ......................... (0.30)% (1.02)% 1.52% (0.68)% (0.79)%
Portfolio turnover rate ....................... 132% 127% 100% 194% 181%
-----------------------------
(a) Per Membership Interest values have been calculated using the average
share method.
(b) Total return is not annualized for periods less than one year. The returns
for the Portfolio do not reflect the deduction of expenses associated with
variable products, such as mortality and expense risk charges, and sales
charges. These expenses would reduce the overall returns shown.
(c) The total return would have been lower if certain fees had not been waived
and expenses reimbursed by the investment advisor.
See Notes to Financial Statements Page 57
FIRST TRUST TARGET FOCUS FOUR PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/12 12/31/11 12/31/10 12/31/09 12/31/08
---------- ---------- ---------- ---------- ----------
Net asset value, beginning of period .......... $ 4.41 $ 4.95 $ 4.16 $ 3.23 $ 5.75
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (a) .............. 0.07 0.04 0.04 0.03 0.07
Net realized and unrealized gain (loss) ....... 0.54 (0.58) 0.75 0.90 (2.59)
---------- ---------- ---------- ---------- ----------
Total from investment operations .............. 0.61 (0.54) 0.79 0.93 (2.52)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ................ $ 5.02 $ 4.41 $ 4.95 $ 4.16 $ 3.23
========== ========== ========== ========== ==========
Total return (b) (c) .......................... 13.83% (10.91)% 18.99% 28.79% (43.83)%
========== ========== ========== ========== ==========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .......... $ 5,804 $ 7,006 $ 10,715 $ 11,204 $ 4,708
Ratio of expenses to average net assets without
fee waivers and expenses reimbursed ........ 2.13% 2.08% 2.01% 2.29% 2.97%
Ratio of expenses to average net assets ....... 1.37% 1.37% 1.37% 1.37% 1.37%
Ratio of net investment income (loss) to
average net assets ......................... 1.42% 0.79% 0.95% 0.92% 1.40%
Portfolio turnover rate ....................... 82% 124% 110% 81% 248%
-----------------------------
(a) Per Membership Interest values have been calculated using the average
share method.
(b) Total return is not annualized for periods less than one year. The returns
for the Portfolio do not reflect the deduction of expenses associated with
variable products, such as mortality and expense risk charges, and sales
charges. These expenses would reduce the overall returns shown.
(c) The total return would have been lower if certain fees had not been waived
and expenses reimbursed by the investment advisor.
Page 58 See Notes to Financial Statements
VALUE LINE(R) TARGET 25 PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/12 12/31/11 12/31/10 12/31/09 12/31/08
---------- ---------- ---------- ---------- ----------
Net asset value, beginning of period .......... $ 2.81 $ 3.73 $ 2.86 $ 2.67 $ 5.91
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) (a) .............. 0.03 (0.04) (0.03) (0.02) (0.01)
Net realized and unrealized gain (loss) ....... 0.57 (0.88) 0.90 0.21 (3.23)
---------- ---------- ---------- ---------- ----------
Total from investment operations .............. 0.60 (0.92) 0.87 0.19 (3.24)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ................ $ 3.41 $ 2.81 $ 3.73 $ 2.86 $ 2.67
========== ========== ========== ========== ==========
Total return (b) (c) .......................... 21.35% (24.67)% 30.42% 7.12% (54.82)%
========== ========== ========== ========== ==========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .......... $ 6,276 $ 7,135 $ 12,602 $ 11,211 $ 15,186
Ratio of expenses to average net assets without
fee waivers and expenses reimbursed ........ 2.00% 1.81% 1.83% 1.80% 1.51%
Ratio of expenses to average net assets ....... 1.47% 1.47% 1.47% 1.47% 1.47%
Ratio of net investment income (loss) to
average net assets ......................... 0.82% (1.10)% (0.82)% (0.63)% (0.22)%
Portfolio turnover rate ....................... 107% 129% 103% 119% 142%
-----------------------------
(a) Per Membership Interest values have been calculated using the average
share method.
(b) Total return is not annualized for periods less than one year. The returns
for the Portfolio do not reflect the deduction of expenses associated with
variable products, such as mortality and expense risk charges, and sales
charges. These expenses would reduce the overall returns shown.
(c) The total return would have been lower if certain fees had not been waived
and expenses reimbursed by the investment advisor.
See Notes to Financial Statements Page 59
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
FIRST DEFINED PORTFOLIO FUND, LLC
DECEMBER 31, 2012
1. FUND DESCRIPTION
First Defined Portfolio Fund, LLC (the "Registrant") was organized as a Delaware
limited liability company on January 8, 1999 under the laws of the State of
Delaware. The Registrant is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940, as amended (the "1940
Act"), as a non-diversified, open-end management investment company.
The Registrant offers eight managed investment portfolios (each a "Portfolio"
and collectively, the "Portfolios") as follows:
Target Managed VIP Portfolio
The Dow(R) DART 10 Portfolio
The Dow(R) Target Dividend Portfolio
Global Dividend Target 15 Portfolio
S&P(R) Target 24 Portfolio
NASDAQ(R) Target 15 Portfolio
First Trust Target Focus Four Portfolio
Value Line(R) Target 25 Portfolio
Under Delaware law, a limited liability company does not issue shares of stock.
Instead, ownership rights are contained in Portfolio Membership Interests (each
an "Interest," and collectively, the "Interests"). Each Interest represents an
undivided interest in the net assets of the applicable Portfolio. Interests are
not offered directly to the public. Interests are sold only to Prudential
Annuities Life Assurance Corporation Variable Account B ("Account B"), a
separate account of Prudential Annuities Life Assurance Corporation
("Prudential"), to fund the benefits of variable annuity policies (the
"Policies") issued by Prudential. Account B is the sole member of the
Registrant. Account B's variable annuity owners who have Policy values allocated
to any of the Portfolios have indirect rights to the Interests.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Portfolios in the preparation of their financial statements. The
preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America ("U.S. GAAP") 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.
A. PORTFOLIO VALUATION:
The net asset value ("NAV") of each Interest is determined daily as of the close
of regular trading on the New York Stock Exchange ("NYSE"), normally 4:00 p.m.
Eastern time, on each day the NYSE is open for trading. If the NYSE closes early
on a valuation day, the NAV is determined as of that time. Domestic debt
securities and foreign securities are priced using data reflecting the earlier
closing of the principal markets for those securities. The NAV per Interest is
calculated by dividing the value of all assets of a Portfolio (including accrued
interest and dividends), less all liabilities (including accrued expenses,
dividends declared but unpaid, and any borrowings of the Portfolio) by the total
number of Interests outstanding.
Each Portfolio's investments are valued daily in accordance with valuation
procedures adopted by the Registrant's Board of Trustees, and in accordance with
provisions of the 1940 Act. Each Portfolio's securities will be valued as
follows:
Common stocks and other equity securities listed on any national or
foreign exchange (excluding the NASDAQ(R) Stock Market LLC ("NASDAQ") and
the London Stock Exchange Alternative Investment Market ("AIM")) are
valued at the last sale price on the exchange on which they are
principally traded or, for NASDAQ and AIM securities, the official closing
price. Securities traded on more than one securities exchange are valued
at the last sale price or official closing price, as applicable, at the
close of the securities exchange representing the principal market for
such securities.
Securities traded in the over-the-counter market are valued at their
closing bid prices.
Short-term investments that mature in less than 60 days when purchased are
valued at amortized cost.
All market quotations used in valuing a Portfolio's securities will be obtained
from a third party pricing service. If no quotation is received from a pricing
service, attempts will be made to obtain one or more broker quotes for the
security. In the event the pricing service does not provide a valuation, broker
quotations are not readily available, or the valuations received are deemed
unreliable, the Registrant's Board of Trustees has designated First Trust
Advisors L.P. ("First Trust") to use a fair value method to value a Portfolio's
securities.
Page 60
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NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
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FIRST DEFINED PORTFOLIO FUND, LLC
DECEMBER 31, 2012
Additionally, if events occur after the close of the principal markets for
certain securities (e.g., domestic debt and foreign securities) that could
materially affect a Portfolio's NAV, First Trust will use a fair value method to
value a Portfolio's securities. The use of fair value pricing is governed by
valuation procedures adopted by the Registrant's Board of Trustees, and in
accordance with the provisions of the 1940 Act. As a general principle, the fair
value of a security is the amount which a Portfolio might reasonably expect to
receive for the security upon its current sale. In light of the judgment
involved in fair valuations, there can be no assurance that a fair value
assigned to a particular security will be the amount which a Portfolio might be
able to receive upon its current sale. Fair valuation of a security will be
based on the consideration of all available information, including, but not
limited to, the following:
1) the type of security;
2) the size of the holding;
3) the initial cost of the security;
4) transactions in comparable securities;
5) price quotes from dealers and/or pricing services;
6) relationships among various securities;
7) information obtained by contacting the issuer, analysts, or the
appropriate stock exchange;
8) an analysis of the issuer's financial statements; and
9) the existence of merger proposals or tender offers that might affect
the value of the security.
If the securities in question are foreign securities, the following additional
information may be considered:
1) the value of similar foreign securities traded on other foreign
markets;
2) ADR trading of similar securities;
3) foreign currency exchange activity;
4) the trading prices of financial products that are tied to baskets of
foreign securities;
5) factors relating to the event that precipitated the pricing problem;
6) whether the event is likely to recur; and
7) whether the effects of the event are isolated or whether they affect
entire markets, countries or regions.
The Portfolios are 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:
o Level 1 - Level 1 inputs are quoted prices in active markets for
identical investments. An active market is a market in which
transactions for the investment occur with sufficient frequency and
volume to provide pricing information on an ongoing basis.
o Level 2 - Level 2 inputs are observable inputs, either directly or
indirectly, and include the following:
o Quoted prices for similar investments in active markets.
o Quoted prices for identical or similar investments in markets
that are non-active. A non-active market is a market where
there are few transactions for the investment, the prices are
not current, or price quotations vary substantially either
over time or among market makers, or in which little
information is released publicly.
o Inputs other than quoted prices that are observable for the
investment (for example, interest rates and yield curves
observable at commonly quoted intervals, volatilities,
prepayment speeds, loss severities, credit risks, and default
rates).
o Inputs that are derived principally from or corroborated by
observable market data by correlation or other means.
o Level 3 - Level 3 inputs are unobservable inputs. Unobservable
inputs may reflect the reporting entity's own assumptions about the
assumptions that market participants would use in pricing the
investment.
The inputs or methodology 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 each Portfolio's investments as of December 31,
2012, is included with the Portfolio's Portfolio of Investments.
B. 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, including amortization of premiums and accretion of
discounts.
Page 61
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NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
--------------------------------------------------------------------------------
FIRST DEFINED PORTFOLIO FUND, LLC
DECEMBER 31, 2012
C. FOREIGN CURRENCY:
The books and records of the Portfolios 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) on foreign
currency translation" on the Statements of Operations. 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 the "Net realized gain (loss) on foreign currency transactions" on
the Statements of Operations. Unrealized appreciation of $679 from dividends
receivable in foreign currencies is included in "Dividends receivable" on the
Statement of Assets and Liabilities for the Global Dividend Target 15 Portfolio.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income and net realized long-term and
short-term capital gains of all Portfolios may be paid with such frequency
(monthly or otherwise) as the Board of Trustees may determine from time to time.
Currently all distributions paid by a Portfolio will be reinvested by the
Portfolio.
E. INCOME TAXES:
The Registrant is a limited liability company with all of its Interests owned by
a single entity (Account B). Accordingly, the Registrant is treated as part of
the operations of Prudential and is not taxed separately. The Registrant intends
to continue to comply with the provisions of Section 817(h) of the Internal
Revenue Code, which impose certain diversification requirements upon variable
contracts that are based on segregated asset accounts. Under current tax law,
interest, dividend income, and capital gains of the Portfolios are not currently
taxable when left to accumulate within a variable annuity contract. As such, no
distributions have been paid by any of the Portfolios and no federal or state
income tax provision is required.
F. EXPENSES:
Expenses that are directly related to one of the Portfolios are charged directly
to that Portfolio. General expenses of the Registrant with the exception of
audit and printing fees, which are allocated evenly among the Portfolios, are
generally allocated to all the Portfolios based upon the average net assets of
each Portfolio.
The Registrant has entered into an Administrative Services Agreement (the
"Agreement") with Prudential whereby Prudential provides certain Membership
Interests servicing reasonably necessary for the operations of the Portfolios
other than the management services provided by First Trust pursuant to the
Investment Advisory and Management Agreement. As compensation for the services
rendered under the Agreement, Prudential is paid fees at an annual rate of 0.30%
of average daily net assets from the Portfolios. These fees are included in
"Membership Interest servicing fees" on the Statements of Operations.
First Trust has entered into various licensing agreements, which allow First
Trust to use certain trademarks and trade names of the applicable licensors (see
Licensing Information in the Additional Information section of this report). The
Portfolios are sub-licensees to these license agreements and are required to pay
licensing fees, which are shown on the Statements of Operations.
3. INVESTMENT ADVISORY FEE AND OTHER AFFILIATED TRANSACTIONS
First Trust, the investment advisor to the Portfolios, is a limited partnership
with one limited partner, Grace Partners of DuPage L.P., and one general
partner, The Charger Corporation. The Charger Corporation is an Illinois
corporation controlled by James A. Bowen, Chief Executive Officer of First
Trust. First Trust provides each Portfolio with discretionary investment
services and certain administrative services necessary for the management of the
Portfolios. For its investment advisory and management services, First Trust is
entitled to a monthly fee calculated at an annual rate of 0.60% of each
Portfolio's average daily net assets.
For the period September 30, 2004 through December 31, 2013, First Trust has
contractually agreed to waive fees and reimburse expenses of the Portfolios to
limit the total annual fund operating expenses (excluding taxes, interest, all
brokerage commissions, other normal charges incident to the purchase and sale of
portfolio securities, and extraordinary expenses) to 1.37% for the First Trust
Target Focus Four Portfolio and 1.47% for each of the other Portfolios' average
daily net assets. Expenses reimbursed and fees waived by First Trust under the
Fee Waiver, Expense Reimbursement and Recovery Agreement are subject to recovery
by First Trust for up to three years from the date the fee or expense was
incurred, but no reimbursement payment will be made by the Portfolio if it
results in the Portfolio exceeding an expense ratio equal to the expense cap in
place at the time the expenses or fees were reimbursed or waived by First Trust.
Page 62
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NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
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FIRST DEFINED PORTFOLIO FUND, LLC
DECEMBER 31, 2012
These amounts would be included in "Expenses previously waived or reimbursed" on
the Statements of Operations. The advisory fee waivers and expense
reimbursements for the year ended December 31, 2012 and the expenses borne by
First Trust subject to recovery from each Portfolio at December 31, 2012 were as
follows:
EXPENSES BORNE BY FIRST TRUST SUBJECT TO RECOVERY
-------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
FEES EXPENSES DECEMBER DECEMBER DECEMBER
WAIVED REIMBURSED 31, 2010 31, 2011 31, 2012 TOTAL
---------- ---------- ---------- ---------- ---------- ----------
Target Managed VIP
Portfolio............................ $ 41,448 $ -- $ 62,766 $ 56,401 $ 41,448 $ 160,615
The Dow(R) Dart 10
Portfolio............................ 28,385 -- 33,855 27,884 28,385 90,124
The Dow(R) Target Dividend
Portfolio............................ 21,677 -- 28,538 22,017 21,677 72,232
Global Dividend Target 15
Portfolio............................ 11,173 -- 24,765 22,253 11,173 58,191
S&P(R) Target 24
Portfolio............................ 34,343 -- 38,449 32,445 34,343 105,237
NASDAQ(R) Target 15
Portfolio............................ 26,475 10,797 40,900 32,132 37,272 110,304
First Trust Target Focus Four
Portfolio............................ 38,902 10,473 67,821 73,400 49,375 190,596
Value Line(R) Target 25
Portfolio ........................... 36,694 -- 40,655 34,798 36,694 112,147
BNY Mellon Investment Servicing (US) Inc. serves as the Registrant's
Administrator, Fund Accountant and Transfer Agent in accordance with certain fee
arrangements. The Bank of New York Mellon serves as the Registrant's Custodian
in accordance with certain fee arrangements.
Effective January 23, 2012, James A. Bowen resigned from his position as the
President and Chief Executive Officer of the Registrant. He will continue as a
Trustee, the Chairman of the Board of Trustees and a member of the Executive
Committee. The Board elected Mark R. Bradley to serve as the President and Chief
Executive Officer of the Registrant and James M. Dykas to serve as the
Treasurer, Chief Financial Officer and Chief Accounting Officer of the
Registrant.
Effective January 1, 2012, each Trustee who is not an officer or employee of
First Trust, any sub-advisor or any of their affiliates ("Independent Trustees")
is paid a fixed annual retainer of $125,000 per year and an annual per fund fee
of $4,000 for each closed-end fund or other actively managed fund and $1,000 for
each index fund in the First Trust Fund Complex. The fixed annual retainer is
allocated pro rata among each fund in the First Trust Fund Complex based on net
assets. Prior to January 1, 2012, each Independent Trustee received an annual
retainer of $10,000 per trust for the first 14 trusts of the First Trust Fund
Complex and an annual retainer of $7,500 per trust for each additional trust in
the First Trust Fund Complex. The annual retainer was allocated equally among
each of the trusts.
Additionally, the Lead Independent Trustee is paid $15,000 annually, the
Chairman of the Audit Committee is paid $10,000 annually, and each of the
Chairmen of the Nominating and Governance Committee and the Valuation Committee
is paid $5,000 annually to serve in such capacities, with such compensation
allocated pro rata among each fund in the First Trust Fund Complex based on net
assets. Prior to January 1, 2012, the annual amounts paid were $10,000, $5,000
and $2,500, respectively. Trustees are reimbursed for travel and out-of-pocket
expenses in connection with all meetings. The Lead Independent Trustee and each
Committee chairman will serve two-year terms until December 31, 2013 before
rotating to serve as chairman of another committee or as Lead Independent
Trustee. After December 31, 2013, the Lead Independent Trustee and Committee
chairmen will rotate every three years. The officers and "Interested" Trustee
receive no compensation from the trusts for acting in such capacities.
4. DISTRIBUTION PLAN
The Registrant, on behalf of each Portfolio, has adopted a 12b-1 Service Plan
(the "Plan") pursuant to Rule 12b-1 under the 1940 Act, which provides that
Interests of each of the Portfolios will be subject to an annual service fee.
First Trust Portfolios L.P. ("FTP") serves as the selling agent and distributor
of Interests of the Portfolios. In this capacity, FTP manages the offering of
the Portfolios' Interests and is responsible for all sales and promotional
activities. The Plan reimburses FTP for its costs in connection with these
activities. FTP also uses the service fee to compensate Prudential for providing
account services to policy owners.
Page 63
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NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
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FIRST DEFINED PORTFOLIO FUND, LLC
DECEMBER 31, 2012
These services include establishing and maintaining policy owner accounts,
answering inquiries, and providing personal services to policy owners. Each
Portfolio may spend up to 0.25% per year of the average daily net assets of its
Interests as a service fee under the Plan. In addition, the Plan permits First
Trust to use a portion of its advisory fee to compensate FTP for expenses
incurred in connection with the sale and distribution of a Portfolio's Interests
including, without limitation, expenses of preparing, printing and distributing
prospectuses to persons other than Interest holders or policy owners, as well as
compensating its sales force, printing and distributing advertising and sales
literature and reports to Interest holders and policy owners used in connection
with the sale of a Portfolio's Interests, certain other expenses associated with
the distribution of the Portfolios, and any distribution-related expenses that
may be authorized by the Registrant's Board of Trustees.
During the year ended December 31, 2012, all service fees received by FTP were
paid to Prudential, with no portion of such fees retained by FTP. The Plan may
be renewed from year to year if approved by a vote of the Registrant's Board of
Trustees and a vote of the Independent Trustees, who have no direct or indirect
financial interest in the Plan, cast in person at a meeting called for the
purpose of voting on the Plan.
5. PURCHASES AND SALES OF SECURITIES
Cost of purchases and proceeds from sales of securities, excluding U.S.
government and short-term investments, for the year ended December 31, 2012,
were as follows:
PURCHASES SALES
------------- -------------
Target Managed VIP Portfolio ................ $13,996,627 $17,894,724
The Dow(R) DART 10 Portfolio ................ 5,277,063 6,110,952
The Dow(R) Target Dividend Portfolio ........ 26,378,202 32,121,668
Global Dividend Target 15 Portfolio ......... 17,641,139 16,455,398
S&P(R) Target 24 Portfolio .................. 9,244,371 11,977,899
NASDAQ(R) Target 15 Portfolio ............... 5,633,502 7,523,651
First Trust Target Focus Four Portfolio ..... 5,168,318 7,251,552
Value Line(R) Target 25 Portfolio ........... 7,323,954 9,578,715
6. MEMBERSHIP INTERESTS
The Registrant has authorized an unlimited number of Membership Interests
without par value of one or more series.
7. INDEMNIFICATION
The Registrant has a variety of indemnification obligations under contracts with
its service providers. The Registrant's maximum exposure under these
arrangements is unknown. However, the Registrant has not had prior claims or
losses pursuant to these contracts and expects the risk of loss to be remote.
8. RISK CONSIDERATIONS
Risks are inherent in all investing. The following summarizes some of the risks
that should be considered for the Portfolios. For additional information about
the risks associated with investing in the Portfolios, please see the
Portfolios' prospectus and statement of additional information, as well as other
regulatory filings.
MARKET RISK: The principal risk of investing in the Portfolios is market risk.
Market risk is the risk that a particular stock in a Portfolio, the Portfolio
itself or stocks in general may fall in value. As with any mutual fund
investment, loss of money is a risk of investing. Shares are subject to market
fluctuations caused by such factors as economic, political, regulatory or market
developments, changes in interest rates and perceived trends in stock prices.
Overall stock values could decline generally or could underperform other
investments.
NON-U.S. SECURITIES INVESTMENT RISK: The Portfolios may invest in non-U.S.
securities. Investing in securities of non-U.S. companies and non-U.S.
governments involves special risks and considerations not typically associated
with investing in the securities of U.S. companies and the U.S. government.
These risks include re-valuation of currencies and future adverse political and
economic developments. These risks are heightened for investments in emerging
market countries. Moreover, securities of many non-U.S. companies and non-U.S.
governments and their markets may be less liquid and their prices more volatile
than those of securities of comparable U.S. companies and the U.S. government.
Page 64
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NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
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FIRST DEFINED PORTFOLIO FUND, LLC
DECEMBER 31, 2012
NON-DIVERSIFICATION RISK: Each Portfolio is classified as "non-diversified" and
is limited as to the percentage of its assets which may be invested in
securities of any one issuer only by its own investment restrictions and
diversification requirements. A Portfolio may therefore invest a relatively high
percentage of its assets in a limited number of issuers. This does expose each
Portfolio to greater market fluctuations than is experienced by a diversified
fund. Each Portfolio is more susceptible to any single economic, political or
regulatory occurrence and to the financial conditions of the issuers in which it
invests.
INVESTMENT STRATEGY RISK: Each Portfolio is also exposed to additional market
risk due to its policy of investing in accordance with an investment strategy.
As a result of this policy, securities held by the Portfolios will generally not
be bought or sold in response to market fluctuations and the securities may be
issued by companies concentrated in a particular industry. Each Portfolio's
relative lack of diversification, possible concentration in a particular
industry and passive management style may subject investors to greater market
risk than other mutual funds.
SMALL CAP COMPANY RISK: The Target Managed VIP Portfolio and Value Line(R)
Target 25 Portfolio invest in small cap stocks, which presents additional risk.
Small cap stocks are more vulnerable to market conditions, less liquid and
generally experience greater price volatility than stocks of larger
capitalization companies.
9. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Portfolios
through the date the financial statements were issued, and has determined that
there were no subsequent events requiring recognition or disclosure in the
financial statements that have not already been disclosed.
Page 65
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
--------------------------------------------------------------------------------
TO THE BOARD OF TRUSTEES AND MEMBER OF FIRST DEFINED PORTFOLIO FUND, LLC:
We have audited the accompanying statements of assets and liabilities of First
Defined Portfolio Fund, LLC (the "Registrant"), comprised of Target Managed VIP
Portfolio, The Dow(R) DART 10 Portfolio, The Dow(R) Target Dividend Portfolio,
Global Dividend Target 15 Portfolio, S&P(R) Target 24 Portfolio, NASDAQ(R)
Target 15 Portfolio, First Trust Target Focus Four Portfolio, and Value Line(R)
Target 25 Portfolio (collectively, the "Portfolios"), including the portfolios
of investments, as of December 31, 2012 and the related statements of operations
for the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Portfolios' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
The Registrant is not required to have, nor were we engaged to perform, an audit
of its internal control over financial reporting. Our audits included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the
Registrant's internal control over financial reporting. Accordingly, we express
no such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. Our procedures
included confirmation of securities owned as of December 31, 2012 by
correspondence with the Portfolios' custodian and brokers. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the Portfolios listed above included in the First Defined Portfolio Fund, LLC
as of December 31, 2012, the results of their operations for the year then
ended, the changes in their net assets for each of the two years in the period
then ended, and the financial highlights for each of the five years in the
period then ended, in conformity with accounting principles generally accepted
in the United States of America.
/s/ Deloitte & Touche LLP
Chicago, Illinois
February 12, 2013
Page 66
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ADDITIONAL INFORMATION
--------------------------------------------------------------------------------
FIRST DEFINED PORTFOLIO FUND, LLC
DECEMBER 31, 2012 (UNAUDITED)
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Registrant uses to
determine how to vote proxies and information on how the Registrant 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 Registrant's website located at
http://www.ftportfolios.com; and (3) on the Securities and Exchange Commission's
website at http://www.sec.gov.
PORTFOLIO HOLDINGS
The Registrant files its complete schedule of portfolio holdings with the SEC
for the first and third quarters of each fiscal year on Form NQ. The
Registrant's Forms N-Q are available (1) by calling (800) 988-5891; (2) on the
Registrant's website located at http://www.ftportfolios.com; (3) on the SEC's
website at http://www.sec.gov; and (4) for review and copying at the SEC's
Public Reference Room ("PRR") in Washington, DC. Information regarding the
operation of the PRR may be obtained by calling (800) SEC-0330.
LICENSING INFORMATION
"The NASDAQ-100(R)", "NASDAQ-100 Index(R)", "NASDAQ Stock Market(R)" and
"NASDAQ(R)" are registered trademarks of the Nasdaq OMX Group, Inc. (which with
its affiliates are the "Corporations") and have been licensed for use by First
Trust on behalf of the Registrant. The NASDAQ(R) Target 15 Portfolio and the
Target Managed VIP Portfolio have not been passed on by the Corporations as to
their legality or suitability. The NASDAQ(R) Target 15 Portfolio and the Target
Managed VIP Portfolio are not issued, endorsed, sponsored, managed, sold or
promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO
LIABILITY WITH RESPECT TO THE REGISTRANT.
"Standard & Poor's(R)," "S&P(R)," "S&P 500(R)," "Standard & Poor's 500", "500",
S&P MidCap 400", "Standard & Poor's MidCap 400", "S&P SmallCap 600" and
"Standard & Poor's SmallCap 600" are registered trademarks of Standard & Poor's
Financial Services LLC ("S&P"), and "Dow Jones Industrial Average(SM),"
"DJIA(SM)," "The Dow Jones Select Dividend Index(SM)," "Dow Industrials(SM),"
"The Dow(R)," "Dow 30(SM)," and "The Dow 10(SM) " and Dow Jones are registered
trademarks of Dow Jones Trademark Holdings LLC ("Dow Jones") and have been
licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain
purposes by FTP on behalf of the Registrant. None of the Portfolios, including,
and in particular, Target Managed VIP Portfolio, The Dow(R) Target Dividend
Portfolio, The Dow(R) DART 10 Portfolio and the First Trust Target Focus Four
Portfolio and S&P(R) Target 24 Portfolio are sponsored, endorsed, sold or
promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective
affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, or their
respective affiliates make any representation regarding the advisability of
investing in such product(s).
"Value Line(R)", "The Value Line Investment Survey," and "Value Line
Timeliness(TM) Ranking System" are trademarks of Value Line Securities, Inc. or
Value Line Publishing, Inc. that have been licensed to First Trust on behalf of
the Registrant. The Target Managed VIP Portfolio, the Value Line(R) Target 25
Portfolio and the First Trust Target Focus Four Portfolio are not sponsored,
recommended, sold or promoted by Value Line Publishing, Inc., Value Line, Inc.
or Value Line Securities, Inc. ("Value Line"). Value Line makes no
representation regarding the advisability of investing in the Target Managed VIP
Portfolio, the Value Line(R) Target 25 Portfolio or the First Trust Target Focus
Four Portfolio.
"NYSE(R)" and "NYSE International 100 Index(R)" are registered trademarks of
NYSE Group, Inc. and have been licensed for use for certain purposes by First
Trust. The First Trust Target Focus Four Portfolio, based in part on the NYSE
International 100 Index(R), is not sponsored, endorsed, sold or promoted by NYSE
Group, Inc. or any of its affiliates, and NYSE Group, Inc. and its affiliates
make no representation regarding the advisability of investing in such product.
NYSE Group, Inc. has no relationship to the First Trust Target Focus Four
Portfolio or First Trust other than the licensing of NYSE International 100
Index(R) and its registered trademarks for use in connection with the First
Trust Target Focus Four Portfolio.
Page 67
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BOARD OF TRUSTEES AND OFFICERS
--------------------------------------------------------------------------------
FIRST DEFINED PORTFOLIO FUND, LLC
DECEMBER 31, 2012 (UNAUDITED)
Information pertaining to the Trustees and officers of the Registrant is set
forth below. The statement of additional information includes additional
information about the Trustees and is available without charge, upon request, by
calling (800) 988-5891.
NUMBER OF
PORTFOLIOS IN
THE FIRST TRUST OTHER
NAME, ADDRESS, TERM OF OFFICE FUND COMPLEX TRUSTEESHIPS OR
DATE OF BIRTH AND AND LENGTH OF PRINCIPAL OCCUPATIONS OVERSEEN BY DIRECTORSHIPS
POSITION WITH THE REGISTRANT SERVICE DURING PAST 5 YEARS TRUSTEE HELD BY TRUSTEE
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
------------------------------------------------------------------------------------------------------------------------------------
Richard E. Erickson, Trustee o Indefinite Term Physician; President, Wheaton Orthopedics; 98 None
c/o First Trust Advisors L.P. Co-Owner and Co-Director (January 1996
120 East Liberty Drive, o Since Inception to May 2007), Sports Med Center for
Suite 400 Fitness; Limited Partner, Gundersen Real
Wheaton, IL 60187 Estate Limited Partnership; Member,
D.O.B.: 04/51 Sportsmed LLC
Thomas R. Kadlec, Trustee o Indefinite Term President (March 2010 to Present), Senior 98 Director of ADM
c/o First Trust Advisors L.P. Vice President and Chief Financial Officer Investor
120 East Liberty Drive, o Since March 2004 (May 2007 to March 2010), Vice President Inc. Services, Inc.
Suite 400 and Chief Financial Officer (1990 to May and ADM Investor
Wheaton, IL 60187 2007), ADM Investor Services, Inc. (Futures Services
D.O.B.: 11/57 Commission Merchant) International
Robert F. Keith, Trustee o Indefinite Term President (2003 to Present), Hibs 98 Director of
c/o First Trust Advisors L.P. Enterprises (Financial and Management Trust Company of
120 East Liberty Drive, o Since April 2007 Consulting) Illinois
Suite 400
Wheaton, IL 60187
D.O.B.: 11/56
Niel B. Nielson, Trustee o Indefinite Term President and Chief Executive Officer (June 98 Director of
c/o First Trust Advisors L.P. 2012 to Present), Dew Learning LLC Covenant
120 East Liberty Drive, o Since Inception (Educational Products and Services); President Transport Inc.
Suite 400 (June 2002 to June 2012), Covenant College
Wheaton, IL 60187
D.O.B.: 03/54
------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE
------------------------------------------------------------------------------------------------------------------------------------
James A. Bowen(1), Trustee o Indefinite Term Chief Executive Officer (December 2010 98 None
and Chairman of the Board to Present), President (until December
120 East Liberty Drive, o Since Inception 2010), First Trust Advisors L.P. and First
Suite 400 Trust Portfolios L.P.; Chairman of the
Wheaton, IL 60187 Board of Directors, BondWave LLC
D.O.B.: 09/55 (Software Development Company/
Investment Advisor) and Stonebridge
Advisors LLC (Investment Advisor)
------------------------
(1) Mr. Bowen is deemed an "interested person" of the Registrant due to his
position as CEO of First Trust Advisors L.P., investment advisor of the
Registrant.
Page 68
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BOARD OF TRUSTEES AND OFFICERS - (CONTINUED)
--------------------------------------------------------------------------------
FIRST DEFINED PORTFOLIO FUND, LLC
DECEMBER 31, 2012 (UNAUDITED)
NAME, ADDRESS POSITION AND OFFICES TERM OF OFFICE AND PRINCIPAL OCCUPATIONS
AND DATE OF BIRTH WITH REGISTRANT LENGTH OF SERVICE DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS (2)
------------------------------------------------------------------------------------------------------------------------------------
Mark R. Bradley President and Chief o Indefinite Term Chief Operating Officer (December 2010 to Present)
120 E. Liberty Drive, Executive Officer and Chief Financial Officer, First Trust Advisors
Suite 400 o President and Chief L.P. and First Trust Portfolios L.P.; Chief
Wheaton, IL 60187 Executive Officer Financial Officer, BondWave LLC (Software
D.O.B.: 11/57 Since January 2012 Development Company/Investment Advisor) and
Stonebridge Advisors LLC (Investment Advisor)
o Treasurer, Chief
Financial Officer and
Chief Accounting Officer
From Registrant Inception
to January 2012
James M. Dykas Treasurer, Chief Financial o Indefinite Term Controller (January 2011 to Present), Senior Vice
120 E. Liberty Drive, Officer and Chief President (April 2007 to January 2011), Vice
Suite 400 Accounting Officer o Treasurer, Chief President (January 2005 to April 2007), First
Wheaton, IL 60187 Financial Officer and Trust Advisors L.P. and First Trust Portfolios
D.O.B.: 01/66 Chief Accounting Officer L.P.
Since January 2012
o Assistant Treasurer from
December 2005 to
January 2012
W. Scott Jardine Secretary and Chief o Indefinite Term General Counsel, First Trust Advisors L.P., First
120 E. Liberty Drive, Legal Officer Trust Portfolios L.P. and BondWave LLC
Suite 400 o Since Inception (Software Development Company/Investment
Wheaton, IL 60187 Advisor): Secretary of Stonebridge Advisors LLC
D.O.B.: 05/60 (Investment Advisor)
Daniel J. Lindquist Vice President o Indefinite Term Senior Vice President (September 2005 to
120 E. Liberty Drive, Present), First Trust Advisors L.P. and First
Suite 400 o Since December 2005 Trust Portfolios L.P.
Wheaton, IL 60187
D.O.B.: 02/70
Kristi A. Maher Assistant Secretary and o Indefinite Term Deputy General Counsel (May 2007 to Present),
120 E. Liberty Drive, Chief Compliance Officer Assistant General Counsel (March 2004 to May
Suite 400 o Assistant Secretary 2007), First Trust Advisors L.P. and First Trust
Wheaton, IL 60187 Since July 2004 Portfolios L.P.
D.O.B.: 12/66
o Chief Compliance Officer
Since January 2011
Roger F. Testin Vice President o Indefinite Term Senior Vice President, First Trust Advisors L.P.
120 E. Liberty Drive, and First Trust Portfolios L.P.
Suite 400 o Since September 2001
Wheaton, IL 60187
D.O.B.: 06/66
------------------------
(2) Officers of the Registrant have an indefinite term. The term "officer"
means the president, vice president, secretary, treasurer, controller or
any other officer who performs a policy making function.
Page 69
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PRIVACY POLICY
--------------------------------------------------------------------------------
FIRST DEFINED PORTFOLIO FUND, LLC
DECEMBER 31, 2012 (UNAUDITED)
PRIVACY POLICY
First Trust values our relationship with you and considers your privacy an
important priority in maintaining our relationship. We are committed to
protecting the security and confidentiality of your personal information.
SOURCES OF INFORMATION
We collect nonpublic personal information about you from the following sources:
o Information we receive from you or your broker-dealer, investment
advisor or financial representative through interviews,
applications, agreements or other forms;
o Information about your transactions with us, our affiliates or
others;
o Information we receive from your inquiries by mail, e-mail or
telephone; and
o Information we collect on our website through the use of "cookies".
For example, we may identify the pages on our website that your
browser requests or visits.
INFORMATION COLLECTED
The type of data we collect may include your name, address, social security
number, age, financial status, assets, income, tax information, retirement and
estate plan information, transaction history, account balance, payment history,
investment objectives, marital status, family relationships and other personal
information.
DISCLOSURE OF INFORMATION
We do not disclose any nonpublic personal information about our customers or
former customers to anyone, except as permitted by law. In addition to using
this information to verify your identity (as required by law), the permitted
uses may also include the disclosure of such information to unaffiliated
companies for the following reasons:
o In order to provide you with products and services and to effect
transactions that you request or authorize, we may disclose your
personal information as described above to unaffiliated financial
service providers and other companies that perform administrative or
other services on our behalf, such as transfer agents, custodians
and trustees, or that assist us in the distribution of investor
materials such as trustees, banks, financial representatives and
printers.
o We may release information we have about you if you direct us to do
so, if we are compelled by law to do so, or in other legally limited
circumstances (for example to protect your account from fraud).
In addition, in order to alert you to our other financial products and services,
we may share your personal information within First Trust.
PRIVACY ONLINE
We allow third-party companies, including AddThis (a social media sharing
service), to collect certain anonymous information when you visit our website.
These companies may use non-personally identifiable information during your
visits to this and other websites in order to provide advertisements about goods
and services likely to be of greater interest to you. These companies typically
use a cookie, third party web beacon or pixel tags, to collect this information.
To learn more about this behavioral advertising practice, you can visit
www.networkadvertising.org.
CONFIDENTIALITY AND SECURITY
With regard to our internal security procedures, First Trust restricts access to
your nonpublic personal information to those First Trust employees who need to
know that information to provide products or services to you. We maintain
physical, electronic and procedural safeguards to protect your nonpublic
personal information.
POLICY UPDATES AND INQUIRIES
As required by federal law, we will notify you of our privacy policy annually.
We reserve the right to modify this policy at any time, however, if we do change
it, we will tell you promptly. For questions about our policy, or for additional
copies of this notice, please go to www.ftportfolios.com, or contact us at (800)
621-1675 (First Trust Portfolios) or (800) 222-6822 (First Trust Advisors).
Page 70
This Page Left Blank Intentionally.
This Page Left Blank Intentionally.
FIRST TRUST
INVESTMENT ADVISOR
First Trust Advisors L.P.
120 E. Liberty Drive, Suite 400
Wheaton, IL 60187
ADMINISTRATOR,
FUND ACCOUNTANT &
TRANSFER AGENT
BNY Mellon Investment Servicing (US) Inc.
301 Bellevue Parkway
Wilmington, DE 19809
CUSTODIAN
The Bank of New York Mellon
101 Barclay Street, 20th Floor
New York, NY 10286
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
111 S. Wacker Drive
Chicago, IL 60606
LEGAL COUNSEL
Chapman and Cutler LLP
111 W. Monroe Street
Chicago, IL 60603
[BLANK BACK COVER]
ITEM 2. CODE OF ETHICS.
(a) The registrant, as of the end of the period covered by this report,
has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by
the registrant or a third party.
(c) There have been no amendments, during the period covered by this
report, to a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial
officer, principal accounting officer or controller, or persons
performing similar functions, regardless of whether these
individuals are employed by the registrant or a third party, and
that relates to any element of the code of ethics description.
(d) The registrant has not granted any waivers, including an implicit
waiver, from a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial
officer, principal accounting officer or controller, or persons
performing similar functions, regardless of whether these
individuals are employed by the registrant or a third party, that
relates to one or more of the items set forth in paragraph (b) of
this item's instructions.
(e) Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
As of the end of the period covered by the report, the Registrant's board of
trustees has determined that Thomas R. Kadlec and Robert F. Keith are qualified
to serve as audit committee financial experts serving on its audit committee and
that each is "independent," as defined by Item 3 of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees -- The aggregate fees billed for each of the last two
fiscal years for professional services rendered by the principal accountant for
the audit of the registrant's annual financial statements or services that are
normally provided by the accountant in connection with statutory and regulatory
filings or engagements were $136,000.00 for 2011 and $136,000.00 for 2012.
(b) Audit-Related Fees (Registrant) -- The aggregate fees billed in each
of the last two fiscal years, for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under paragraph
(a) of this Item were $0 for 2011 and $0 for 2012.
Audit-Related Fees (Investment Adviser and Distributor) -- The aggregate
fees billed in each of the last two fiscal years for assurance and related
services by the principal accountant that are reasonably related to the
performance of the audit of the registrant's financial statements and are not
reported under paragraph (a) of this Item were $0 for 2011 and $0 for 2012.
(c) Tax Fees (Registrant) -- The aggregate fees billed in each of the last
two fiscal years for professional services rendered by the principal accountant
for tax compliance, tax advice, and tax planning to the registrant were $0 for
2011 and $0 for 2012.
Tax Fees (Investment Adviser and Distributor) -- The aggregate fees billed
in each of the last two fiscal years for professional services rendered by the
principal accountant for tax compliance, tax advice, and tax planning to the
registrant's adviser and distributor were $0 for 2011 and $0 for 2012.
(d) All Other Fees (Registrant) -- The aggregate fees billed in each of
the last two fiscal years for products and services provided by the principal
accountant to the registrant, other than the services reported in paragraphs (a)
through (c) of this Item were $0 for 2011 and $0 for 2012.
All Other Fees (Investment Adviser and Distributor) -- The aggregate fees
billed in each of the last two fiscal years for products and services provided
by the principal accountant to the registrant's investment adviser and
distributor, other than the services reported in paragraphs (a) through (c) of
this Item were $0 for 2011 and $0 for 2012.
(e)(1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
Pursuant to its charter and its Audit and Non-Audit Services Pre-Approval
Policy, the Audit Committee (the "Committee") is responsible for the
pre-approval of all audit services and permitted non-audit services (including
the fees and terms thereof) to be performed for the registrant by its
independent auditors. The Chairman of the Committee is authorized to give such
pre-approvals on behalf of the Committee up to $25,000 and report any such
pre-approval to the full Committee.
The Committee is also responsible for the pre-approval of the independent
auditor's engagements for non-audit services with the registrant's adviser (not
including a sub-adviser whose role is primarily portfolio management and is
sub-contracted or overseen by another investment adviser) and any entity
controlling, controlled by or under common control with the investment adviser
that provides ongoing services to the registrant, if the engagement relates
directly to the operations and financial reporting of the registrant, subject to
the de minimis exceptions for non-audit services described in Rule 2-01 of
Regulation S-X. If the independent auditor has provided non-audit services to
the registrant's adviser (other than any sub-adviser whose role is primarily
portfolio management and is sub-contracted with or overseen by another
investment adviser) and any entity controlling, controlled by or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to its policies, the Committee
will consider whether the provision of such non-audit services is compatible
with the auditor's independence.
(e)(2) The percentage of services described in each of paragraphs (b) through
(d) for the registrant and the registrant's investment adviser of this
Item that were approved by the audit committee pursuant to the
pre-approval exceptions included in paragraph (c)(7)(i)(c) or paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X are as follows:
(b) 0%
(c) 0%
(d) 0%
(f) The percentage of hours expended on the principal accountant's engagement
to audit the registrant's financial statements for the most recent fiscal
year that were attributed to work performed by persons other than the
principal accountant's full-time, permanent employees was less than fifty
percent.
(g) The aggregate non-audit fees billed by the registrant's accountant for
services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under
common control with the adviser that provides ongoing services to the
registrant for 2011 were $0 for the registrant, $6,200.00 for the
registrant's investment adviser and $59,063 for the registrant's
distributor and for 2012 were $0 for the registrant, $4,120 for the
registrant's investment adviser and $65,135 for the registrant's
distributor.
(h) The registrant's audit committee of its Board of Trustees has determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser (not including any sub-adviser whose role
is primarily portfolio management and is subcontracted with or overseen
by another investment adviser), and any entity controlling, controlled
by, or under common control with the investment adviser that provides
ongoing services to the registrant that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) Schedule of Investments in securities of unaffiliated issuers as of the
close of the reporting period is included as part of the report to
shareholders filed under Item 1 of this form.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. 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 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)),
or this Item.
ITEM 11. 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 second fiscal quarter
of the period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal control
over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Code of ethics, or any amendment thereto, that is the subject of
disclosure required by Item 2 is attached hereto.
(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(b) 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 Defined Portfolio Fund, LLC
--------------------------------------------------------------------
By (Signature and Title)* /s/ Mark R. Bradley
------------------------------------------------------
Mark R. Bradley, President and Chief Executive Officer
(principal executive officer)
Date February 12, 2013
--------------------
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/ Mark R. Bradley
------------------------------------------------------
Mark R. Bradley, President and Chief Executive Officer
(principal executive officer)
Date February 12, 2013
--------------------
By (Signature and Title)* /s/ James M. Dykas
------------------------------------------------------
James M. Dykas, Treasurer, Chief Financial Officer and
Chief Accounting Officer
(principal financial officer)
Date February 12, 2013
--------------------
* Print the name and title of each signing officer under his or her signature.