<PAGE> 1
FIRST DEFINED PORTFOLIO FUND, LLC
SEMI-ANNUAL REPORT
FOR THE SIX MONTHS ENDED JUNE 30, 2000
<PAGE> 2
TABLE OF CONTENTS
FIRST DEFINED PORTFOLIO FUND, LLC
JUNE 30, 2000
Page
Shareholder Letter 2
Portfolio of Investments 3
Statements of Assets and Liabilities 14
Statements of Operations 16
Statements of Changes in Net Assets 18
Statements of Changes in Net Assets-Capital Stock Activity 20
Financial Highlights 22
Notes to Financial Statements 33
Page 1
<PAGE> 3
SHAREHOLDER LETTER
FIRST DEFINED PORTFOLIO FUND, LLC
JUNE 30, 2000
Dear Shareholders:
The first half of 2000 was a tale of two quarters. In the first quarter the
Federal Reserve Board voted to raise short-term lending rates a total of .50
percent, yet the stock market continued to rally, albeit narrowly, fueled mostly
by technology issues. In the second quarter, investors took notice of the fact
that the Fed's efforts to temper GDP growth while curbing inflation were to
date, largely ineffective. The combination of a strong economy, surging oil
prices, an additional Fed interest rate hike of .50 percent, and high valuations
finally broke the back of technology stocks. Investors moved aggressively to
take profits and rotated out of technology issues into old economy stocks, such
as pharmaceuticals, assuming a more defensive posture.
Over the past six months, the S&P 500 posted a return of -0.44%, the Dow Jones
Industrial Average (DJIA) returned -8.44%, and the Nasdaq Composite returned
-2.46%. The first half performance for the Dow Jones Industrial Average, S&P
500, and the Nasdaq Composite showed the only half-year price declines since
1994. In both instances, the Federal Reserve was aggressively raising interest
rates.
Based upon expectations that the Federal Reserve is well into the process of
successfully navigating a soft landing for the economy, stocks should resume
outperforming bonds and cash in the second half. We expect that stocks may enjoy
a price/earnings multiple expansion due to lower long-term interest rates which
should more than offset any potential drag on corporate earnings growth due to a
slower growth economy.
The approach to investing the portfolios of the First Defined Portfolio Fund,
LLC remains consistent as we strive to invest in concentrated portfolios using a
disciplined approach. Within each of the sector-oriented portfolios our
objective is to continue to search for those companies which we feel have the
ability to continue creating shareholder value into the future. Likewise,
portfolios derived from indexes will continue to employ quantitative strategies
that based upon historical evidence and common sense allow investors the
opportunity to obtain risk-adjusted returns greater than that of the index
itself.
/s/ James A. Bowen
James A. Bowen
President of the First Defined
Portfolio Fund, LLC
Page 2
<PAGE> 4
THE DOW(SM) TARGET 5 PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
---------- --------
<S> <C> <C>
COMMON STOCKS - 97.9%
BASIC MATERIALS - 29.4%
280 duPont (EI) deNemours $ 12,250
327 International Paper Company 9,749
--------
21,999
--------
FOOD BEVERAGE & TOBACCO - 28.1%
791 Philip Morris Companies, Inc. 21,011
--------
TELECOMMUNICATIONS SERVICES - 22.5%
388 SBC Communications, Inc. 16,781
--------
CAPITAL GOODS - 17.9%
396 Caterpillar, Inc. 13,414
--------
TOTAL COMMON STOCKS 73,205
--------
(Cost $91,201)
TOTAL INVESTMENTS - 97.9% 73,205
(Cost $91,201)
NET OTHER ASSETS AND LIABILITIES - 2.1% 1,557
--------
NET ASSETS - 100.0% $ 74,762
========
</TABLE>
See Notes to Financial Statements. Page 3
<PAGE> 5
THE DOW(SM) DART 10 PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- --------
<S> <C> <C>
COMMON STOCKS - 90.9%
CAPITAL GOODS - 23.7%
1,708 Boeing Company $ 71,416
1,507 Caterpillar, Inc. 51,050
1,234 Honeywell International, Inc. 41,570
--------
164,036
--------
TECHNOLOGY HARDWARE & EQUIPMENT - 13.2%
194 Agilent Technologies, Inc.* 14,308
617 Hewlett-Packard Company 77,048
--------
91,356
--------
FOOD BEVERAGE & TOBACCO - 11.5%
3,007 Philip Morris Companies, Inc. 79,873
--------
PHARMACEUTICALS & BIOTECHNOLOGY - 11.3%
1,027 Merck & Company, Inc. 78,694
--------
CONSUMER DURABLES & APPAREL - 9.0%
1,054 Eastman Kodak Company 62,713
--------
BANKS - 8.8%
552 Morgan (J.P.) & Company 60,789
--------
AUTOMOBILE & COMPONENTS - 8.1%
965 General Motors Corporation 56,030
--------
CONSUMER STAPLES - 5.3%
640 Procter & Gamble Company 36,640
--------
TOTAL COMMON STOCKS 630,131
--------
(Cost $662,048)
TOTAL INVESTMENTS - 90.9% 630,131
(Cost $662,048)
NET OTHER ASSETS AND LIABILITIES - 9.1% 63,017
--------
NET ASSETS - 100.0% $693,148
========
</TABLE>
--------------------------------------------------------------------------------
* Non-income producing security.
Page 4 See Notes to Financial Statements.
<PAGE> 6
GLOBAL TARGET 15 PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- --------
<S> <C> <C>
COMMON STOCKS - 93.5%
HONG KONG - 26.6%
51,500 Amoy Properties Ltd. $ 34,686
37,000 Hang Lung Development Company 28,718
41,000 Henderson Investment Ltd.* 25,905
32,100 Hong Kong and China Gas Company Ltd. 36,034
33,000 Hysan Development Company Ltd. 34,715
--------
160,058
--------
UNITED KINGDOM - 34.8%
9,460 Allied Domecq Plc 50,125
7,616 Blue Circle Industries Plc 49,175
7,026 British Airways Plc 40,419
9,795 Marks & Spencer Plc 34,440
7,120 Tate & Lyle Plc 35,571
--------
209,730
--------
UNITED STATES - 32.1%
990 Caterpillar, Inc. 33,535
692 Eastman Kodak Company 41,174
817 International Paper Company 24,357
1,975 Philip Morris Companies, Inc. 52,461
969 SBC Communications, Inc. 41,909
--------
193,436
--------
TOTAL COMMON STOCKS 563,224
--------
(Cost $587,850)
TOTAL INVESTMENTS - 93.5% 563,224
(Cost $587,850)
NET OTHER ASSETS AND LIABILITIES - 6.5% 39,321
--------
NET ASSETS - 100.0% $602,545
========
</TABLE>
--------------------------------------------------------------------------------
* Non-income producing security.
Industry diversification as a percentage of net assets.
<TABLE>
<S> <C>
Food Beverage & Tobacco 22.9%
Real Estate 20.6%
Capital Goods 13.7%
Telecommunications 7.0%
Consumer Durables 6.8%
Transportation 6.7%
Oil & Gas 6.0%
Retail 5.7%
Basic Materials 4.1%
Net Other Assets and Liabilities 6.5%
-----
100.0%
=====
</TABLE>
See Notes to Financial Statements. Page 5
<PAGE> 7
S&P TARGET 10 PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
---------- ----------
<S> <C> <C>
COMMON STOCKS - 100.4%
RETAILING - 43.5%
3,216 Circuit City Stores, Inc. $ 106,731
2,985 RadioShack Corp. 141,414
3,813 Wal-Mart Stores, Inc. 219,724
----------
467,869
----------
BASIC MATERIALS - 16.2%
3,451 Alcoa, Inc. 100,079
2,830 Georgia-Pacific Group 74,288
----------
174,367
----------
SOFTWARE & SERVICES - 15.2%
2,975 Seagate Technology, Inc. * 163,625
----------
DIVERSIFIED FINANCIALS - 13.2%
780 Citigroup, Inc. 46,995
505 Lehman Brothers Holdings, Inc. 47,754
561 Morgan Stanley Dean Witter & Company 46,703
----------
141,452
----------
BASIC INDUSTRY - 12.3%
1,963 Avery Dennison Corp. 131,767
----------
TOTAL COMMON STOCKS 1,079,080
(Cost $1,120,210) ----------
TOTAL INVESTMENTS - 100.4% 1,079,080
(Cost $1,120,210)
NET OTHER ASSETS AND LIABILITIES - (0.4)% (4,676)
----------
NET ASSETS - 100.0% $1,074,404
==========
</TABLE>
-------------------------------------------------------------------------------
* Non-income producing security.
Page 6 See Notes to Financial Statements.
<PAGE> 8
NASDAQ TARGET 15 PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- ----------
<S> <C> <C>
COMMON STOCKS - 100.5%
TECHNOLOGY HARDWARE & EQUIPMENT - 50.2%
2,121 Apple Computer, Inc.* $ 111,087
700 Applied Micro Circuits Corp.* 69,125
1,310 Atmel Corp.* 48,306
877 PMC-Sierra, Inc.* 155,832
493 QLogic Corp.* 32,568
528 RF Micro Devices, Inc.* 46,266
5,897 Sun Microsystems, Inc.* 536,258
2,199 Xilinx, Inc.* 181,555
----------
1,180,997
----------
SOFTWARE & SERVICES - 46.1%
815 Adobe Systems, Inc. 105,950
957 CMGI, Inc.* 43,844
423 Electronic Arts, Inc.* 30,853
8,365 Oracle Corp.* 703,183
1,236 Siebel Systems, Inc.* 202,163
----------
1,085,993
----------
PHARMACEUTICALS & BIOTECHNOLOGY - 3.7%
1,181 MedImmune, Inc.* 87,394
----------
HEALTH CARE EQUIPMENT & SERVICES - 0.5%
445 VISX, Inc.* 12,488
----------
TOTAL COMMON STOCKS 2,366,872
----------
(Cost $2,318,131)
TOTAL INVESTMENTS - 100.5% 2,366,872
(Cost $2,318,131)
NET OTHER ASSETS AND LIABILITIES - (0.5)% (11,716)
----------
NET ASSETS - 100.0% $2,355,156
==========
</TABLE>
--------------------------------------------------------------------------------
* Non-income producing security.
See Notes to Financial Statements. Page 7
<PAGE> 9
FIRST TRUST 10 UNCOMMON VALUES PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- --------
<S> <C> <C>
COMMON STOCKS - 100.4%
TECHNOLOGY HARDWARE & EQUIPMENT - 59.2%
466 Agilent Technologies, Inc.* $ 34,368
681 Gemstar International Group Ltd.* 41,850
299 Hewlett-Packard Company 37,338
271 Juniper Networks, Inc.* 39,447
423 Micron Technology, Inc.* 37,250
545 Tellabs, Inc.* 37,298
--------
227,551
--------
PHARMACEUTICALS & BIOTECHNOLOGY - 11.0%
425 Lilly (Eli) & Company 42,447
--------
SOFTWARE & SERVICES - 10.4%
806 BEA Systems, Inc.* 39,847
--------
TELECOMMUNICATIONS SERVICES - 9.5%
537 Nortel Networks Corp. 36,650
--------
BUSINESS SERVICES - 9.0%
2,470 Cendant Corp.* 34,580
--------
CAPITAL GOODS - 1.3%
103 Tyco International Ltd. 4,880
--------
AUTOMOBILE & COMPONENTS - 0.0%#
2 Visteon Corp.* 28
--------
TOTAL COMMON STOCKS 385,983
--------
(Cost $381,998)
TOTAL INVESTMENTS - 100.4% 385,983
(Cost $381,998)
NET OTHER ASSETS AND LIABILITIES - (0.4)% (1,456)
--------
NET ASSETS - 100.0% $384,527
========
</TABLE>
--------------------------------------------------------------------------------
* Non-income producing security.
# Amount represents less than 0.1% of net assets.
Page 8 See Notes to Financial Statements.
<PAGE> 10
FIRST TRUST ENERGY PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- --------
<S> <C> <C>
COMMON STOCKS - 94.0%
OIL & GAS - 43.4%
156 Barrett Resources Corp.* $ 4,748
75 BP Amoco Plc, Sponsored ADR 4,242
136 Burlington Resources, Inc. 5,202
52 Chevron Corp. 4,410
81 ENI Spa, Sponsored ADR* 4,713
260 EOG Resources, Inc. 8,710
55 Exxon Mobil Corp. 4,321
74 Royal Dutch Petroleum 4,556
83 Texaco, Inc. 4,420
166 Tosco Corp. 4,752
67 Total Fina Sa, Sponsored ADR 5,159
178 USX-Marathon Group 4,461
75 Vastar Resources, Inc. 6,164
--------
65,858
--------
ENERGY EQUIPMENT & SERVICES - 42.5%
111 BJ Services Company* 6,938
276 Global Marine, Inc.* 7,780
118 Grant Prideco, Inc.* 2,950
115 Halliburton Company 5,427
151 Nabors Industries, Inc.* 6,276
141 Noble Drilling Corp.* 5,807
181 Santa Fe International Corp. 6,323
85 Schlumberger Ltd. 6,343
133 Tidewater, Inc. 4,788
135 Transocean Sedco Forex, Inc. 7,214
118 Weatherford International, Inc.* 4,698
--------
64,544
--------
MULTI-UTILITIES - 4.3%
101 Enron Corp. 6,514
--------
GAS UTILITIES - 3.8%
113 El Paso Energy Corp. 5,756
--------
TOTAL COMMON STOCKS 142,672
--------
(Cost $104,621)
TOTAL INVESTMENTS - 94.0% 142,672
(Cost $104,621)
NET OTHER ASSETS AND LIABILITIES - 6.0% 9,162
--------
NET ASSETS - 100.0% $151,834
========
</TABLE>
--------------------------------------------------------------------------------
* Non-income producing security.
ADR American Depositary Receipt
See Notes to Financial Statements. Page 9
<PAGE> 11
FIRST TRUST FINANCIAL SERVICES PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
---------- --------
<S> <C> <C>
COMMON STOCKS - 102.8%
DIVERSIFIED FINANCIALS - 69.7%
227 American Express Company $ 11,832
570 Ameritrade Holding Corp.* 6,626
264 Capital One Financial Corp. 11,781
494 Charles Schwab & Company, Inc.* 16,611
227 Citigroup, Inc. 13,677
256 Donaldson, Lufkin & Jenrette, Inc. 10,864
466 E*TRADE Group, Inc.* 7,689
332 Eaton Vance Corp. 15,355
137 Goldman Sachs Group, Inc. 12,998
344 Household International, Inc. 14,297
267 Knight Trading Group, Inc.* 7,960
148 Lehman Brothers Holdings, Inc. 13,995
133 Marsh & McLennan Companies, Inc. 13,890
461 MBNA Corp. 12,505
367 Mellon Financial Corp. 13,373
154 Merrill Lynch & Company, Inc. 17,710
178 Morgan Stanley Dean Witter & Company 14,819
349 Price (T. Rowe) Associates, Inc. 14,832
140 Providian Financial Corp. 12,600
171 State Street Corp. 18,137
--------
261,551
--------
BANKS - 22.3%
248 Bank of America Corp. 10,664
242 Chase Manhattan Corp. 11,124
598 Firstar Corp. 12,595
358 Fleet Boston Financial Corp. 12,172
563 KeyCorp 9,923
233 Northern Trust Corp. 15,160
309 Wells Fargo & Company 11,974
--------
83,612
--------
INSURANCE - 10.8%
269 AFLAC, Inc. 12,357
116 American International Group, Inc. 13,630
447 Nationwide Financial Services, Inc. 14,695
--------
40,682
--------
TOTAL COMMON STOCKS 385,845
--------
(Cost $385,667)
TOTAL INVESTMENTS - 102.8% 385,845
(Cost $385,667)
NET OTHER ASSETS AND LIABILITIES - (2.8)% (10,688)
--------
NET ASSETS - 100.0% $375,157
========
</TABLE>
--------------------------------------------------------------------------------
* Non-income producing security.
Page 10 See Notes to Financial Statements.
<PAGE> 12
FIRST TRUST INTERNET PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
--------- ---------
<S> <C> <C>
COMMON STOCKS - 100.0%
TECHNOLOGY HARDWARE & EQUIPMENT - 55.2%
65 Agilent Technologies, Inc.* $ 4,794
348 Cisco Systems, Inc.* 22,120
463 Dell Computer Corp.* 22,832
365 EMC Corp.* 28,082
288 Exodus Communications, Inc.* 13,266
379 Gateway, Inc.* 21,508
161 Hewlett-Packard Company 20,105
197 Intel Corp. 26,336
172 JDS Uniphase Corp.* 20,619
240 Juniper Networks, Inc.* 34,935
349 Lucent Technologies, Inc. 20,678
384 Nortel Networks Corp. 26,208
96 PMC Sierra, Inc.* 17,058
252 Sun Microsystems, Inc.* 22,916
416 Tellabs, Inc.* 28,470
---------
329,927
---------
SOFTWARE & SERVICES - 34.6%
404 America Online, Inc.* 21,311
276 Broadvision, Inc.* 14,024
85 Check Point Software Technology Ltd.* 17,999
174 CMGI, Inc.* 7,971
165 Internet Capital Group, Inc.* 6,108
323 Lycos, Inc.* 17,442
235 Microsoft Corp.* 18,800
290 Oracle Corp.* 24,378
118 Phone.com, Inc.* 7,685
290 RealNetworks, Inc.* 14,663
124 Redback Networks, Inc.* 22,072
99 VeriSign, Inc.* 17,473
133 Yahoo!, Inc.* 16,475
---------
206,401
---------
TELECOMMUNICATIONS SERVICES - 10.2%
438 AT&T Corp. 13,852
454 Qwest Communications International, Inc.* 22,558
531 WorldCom, Inc.* 24,360
---------
60,770
---------
TOTAL COMMON STOCKS 597,098
---------
(Cost $574,884)
TOTAL INVESTMENTS - 100.0% 597,098
(Cost $574,884)
NET OTHER ASSETS AND LIABILITIES - 0.0%# 269
---------
NET ASSETS - 100.0% $ 597,367
=========
</TABLE>
--------------------------------------------------------------------------------
* Non-income producing security.
# Amount represents less than 0.1% of net assets.
See Notes to Financial Statements. Page 11
<PAGE> 13
FIRST TRUST PHARMACEUTICAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
---------- ---------
<S> <C> <C>
COMMON STOCKS - 95.6%
PHARMACEUTICALS - 69.0%
670 Abbott Laboratories $ 29,857
450 Andrx Corp.* 28,765
428 Bristol-Myers Squibb Company 24,931
324 COR Therapeutics, Inc.* 27,641
514 Elan Corp. Plc, Sponsored ADR* 24,897
406 Glaxo Wellcome Plc, Sponsored ADR 23,472
286 Johnson & Johnson 29,136
373 Lilly (Eli) & Company 37,253
422 MedImmune, Inc.* 31,228
368 Merck & Company, Inc. 28,198
710 Novatis Ag, ADR* 28,400
648 Pfizer, Inc. 31,104
205 Roche Holdings Ltd., ADR 20,020
611 Schering-Plough Corp. 30,855
---------
395,757
---------
BIOTECHNOLOGY - 26.6%
452 Amgen, Inc.* 31,753
286 Biogen, Inc.* 18,447
549 Chiron Corp.* 26,078
492 Genzyme Corp.* 29,243
213 IDEC Pharmaceuticals Corp.* 24,988
453 Immunex Corp.* 22,395
---------
152,904
---------
TOTAL COMMON STOCKS 548,661
---------
(Cost $481,941)
TOTAL INVESTMENTS - 95.6% 548,661
(Cost $481,941)
NET OTHER ASSETS AND LIABILITIES - 4.4% 24,962
---------
NET ASSETS - 100.0% $ 573,623
=========
</TABLE>
--------------------------------------------------------------------------------
* Non-income producing security.
ADR American Depositary Receipt
Page 12 See Notes to Financial Statements.
<PAGE> 14
FIRST TRUST TECHNOLOGY PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
---------- ---------
<S> <C> <C>
COMMON STOCKS - 96.6%
TECHNOLOGY HARDWARE & EQUIPMENT - 69.0%
70 Agilent Technologies, Inc.* $ 5,162
304 Altera Corp.* 30,989
279 Applied Materials, Inc.* 25,284
391 Cisco Systems, Inc.* 24,853
453 Dell Computer Corp.* 22,339
396 EMC Corp.* 30,467
423 Gateway, Inc.* 24,005
182 Hewlett-Packard Company 22,727
194 Intel Corp. 25,935
232 International Business Machines Corp. 25,419
216 JDS Uniphase Corp.* 25,893
391 Lucent Technologies, Inc. 23,167
62 Maxim Integrated Products, Inc.* 4,212
414 National Semiconductor Corp.* 23,494
547 Novellus Systems, Inc.* 30,940
126 PMC-Sierra, Inc.* 22,389
202 QUALCOMM, Inc.* 12,120
396 Seagate Technology, Inc.* 21,780
595 Solectron Corp.* 24,916
410 STMicroelectronics N.V., (NY Share) 26,317
282 Sun Microsystems, Inc.* 25,644
434 Tellabs, Inc.* 29,702
313 Texas Instruments, Inc. 21,499
305 Vitesse Semiconductor Corp.* 22,437
---------
551,690
---------
SOFTWARE & SERVICES - 18.8%
508 BMC Software, Inc.* 18,534
132 Check Point Software Technology Ltd.* 27,951
269 Microsoft Corp.* 21,519
335 Oracle Corp.* 28,161
197 Siebel Systems, Inc.* 32,222
381 3Com Corp.* 21,955
---------
150,342
---------
TELECOMMUNICATIONS SERVICES & EQUIPMENT - 8.8%
528 ADC Telecommunications, Inc.* 44,286
519 Nokia Oyj, Sponsored ADR 25,918
---------
70,204
---------
TOTAL COMMON STOCKS 772,236
---------
(Cost $777,804)
TOTAL INVESTMENTS - 96.6% 772,236
(Cost $777,804)
NET OTHER ASSETS AND LIABILITIES - 3.4% 27,135
---------
NET ASSETS - 100.0% $ 799,371
=========
</TABLE>
--------------------------------------------------------------------------------
* Non-income producing security.
ADR American Depositary Receipt
See Notes to Financial Statements. Page 13
<PAGE> 15
STATEMENTS OF ASSETS AND LIABILITIES
FIRST DEFINED PORTFOLIO FUND, LLC
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
THE DOW(SM) THE DOW(SM) GLOBAL S&P
TARGET 5 DART 10 TARGET 15 TARGET 10
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- --------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(See portfolios of investments) (a): ........... 73,205 $ 630,131 $ 563,224 $ 1,079,080
--------- --------- --------- -----------
Cash ............................................... 33,545 93,865 97,615 121,403
Dividends Receivable ............................... 380 2,856 3,041 382
Receivable for investment securities sold .......... -- -- -- --
Receivable from Advisor ............................ 9,845 10,193 8,833 10,294
--------- --------- --------- -----------
Total Assets ............................... 116,975 737,045 672,713 1,211,159
--------- --------- --------- -----------
LIABILITIES:
Payable for investment securities purchased ........ -- -- 40,947 97,004
Investment advisory fee payable .................... 356 1,182 1,387 2,127
Payable to Administrator ........................... 7,622 7,895 4,080 6,683
Trustees fee payable ............................... 12,238 12,449 1,660 8,300
Accrued legal fees ................................. 3,675 3,693 3,693 3,693
Accrued audit fees ................................. 5,560 5,638 5,638 5,638
Membership Interest servicing fee payable .......... 16 124 104 194
Printing fees payable .............................. 4,386 4,384 4,349 4,322
Custodian fee payable .............................. 7,850 7,850 7,850 7,850
Accrued expenses and other payables ................ 510 682 460 944
--------- --------- --------- -----------
Total Liabilities ........................... 42,213 43,897 70,168 136,755
--------- --------- --------- -----------
NET ASSETS ......................................... $ 74,762 $ 693,148 $ 602,545 $ 1,074,404
========= ========= ========= ===========
(a) Investments, at cost ........................... $ 91,201 $ 662,048 $ 587,850 $ 1,120,210
========= ========= ========= ===========
NET ASSETS consist of:
Undistributed net investment income/(accumulated
net investment loss) ............................ $ 1,441 $ 2,937 $ 6,603 $ (2,787)
Accumulated net realized gain/(loss) on investments
sold and foreign currency transactions ........... (19,136) (5,481) (17,236) 15,463
Net unrealized appreciation/(depreciation) on
investments and foreign currency transactions .... (17,996) (31,917) (24,794) (41,130)
Paid-in capital .................................... 110,453 727,609 637,972 1,102,858
--------- --------- --------- -----------
Total Net Assets .............................. $ 74,762 $ 693,148 $ 602,545 $ 1,074,404
========= ========= ========= ===========
NET ASSET VALUE, offering price and redemption price
of Membership Interest outstanding ............... $ 6.47 $ 8.44 $ 8.37 $ 10.35
========= ========= ========= ===========
Number of Membership Interests outstanding ......... 11,559 82,089 72,025 103,797
========= ========= ========= ===========
</TABLE>
Page 14 See Notes to Financial Statements.
<PAGE> 16
<TABLE>
<CAPTION>
FIRST TRUST FIRST TRUST
NASDAQ 10 UNCOMMON FIRST TRUST FINANCIAL FIRST TRUST FIRST TRUST FIRST TRUST
TARGET 15 VALUES ENERGY SERVICES INTERNET PHARMACEUTICAL TECHNOLOGY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------- ----------- ----------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
$ 2,366,872 $ 385,983 $ 142,672 $ 385,845 $ 597,098 $ 548,661 $ 772,236
----------- --------- --------- --------- --------- --------- ---------
210,709 212,983 28,542 10,784 32,119 53,799 51,521
19 204 235 485 122 123 29
-- 174,625 -- -- -- -- --
11,946 9,300 8,146 8,839 10,242 9,692 9,579
----------- --------- --------- --------- --------- --------- ---------
2,589,546 783,095 179,595 405,953 639,581 612,275 833,365
----------- --------- --------- --------- --------- --------- ---------
192,889 361,078 -- -- -- -- --
4,617 657 537 1,136 1,442 1,204 1,881
7,006 6,399 4,099 4,787 7,340 6,566 5,480
7,470 8,300 830 2,489 10,790 8,300 4,151
3,693 3,693 3,693 3,693 3,693 3,693 3,693
5,638 5,638 5,638 5,638 5,638 5,638 5,638
411 40 30 82 115 102 158
4,182 4,379 4,391 4,369 4,326 4,356 4,333
7,850 7,850 7,850 7,850 7,850 7,850 7,850
634 534 693 752 1,020 943 810
----------- --------- --------- --------- --------- --------- ---------
234,390 398,568 27,761 30,796 42,214 38,652 33,994
----------- --------- --------- --------- --------- --------- ---------
$ 2,355,156 $ 384,527 $ 151,834 $ 375,157 $ 597,367 $ 573,623 $ 799,371
=========== ========= ========= ========= ========= ========= =========
$ 2,318,131 $ 381,998 $ 104,621 $ 385,667 $ 574,884 $ 481,941 $ 777,804
=========== ========= ========= ========= ========= ========= =========
$ (11,389) $ (732) $ (281) $ (271) $ (3,321) $ (713) $ (4,432)
210,123 4,183 2,640 21,414 74,730 16,653 79,213
48,741 3,985 38,051 178 22,214 66,720 (5,568)
2,107,681 377,091 111,424 353,836 503,744 490,963 730,158
----------- --------- --------- --------- --------- --------- ---------
$ 2,355,156 $ 384,527 $ 151,834 $ 375,157 $ 597,367 $ 573,623 $ 799,371
=========== ========= ========= ========= ========= ========= =========
$ 19.40 $ 11.08 $ 14.03 $ 10.47 $ 18.18 $ 12.46 $ 15.94
=========== ========= ========= ========= ========= ========= =========
121,370 34,709 10,824 35,817 32,861 46,024 50,137
=========== ========= ========= ========= ========= ========= =========
</TABLE>
See Notes to Financial Statements. Page 15
<PAGE> 17
STATEMENTS OF OPERATIONS
FIRST DEFINED PORTFOLIO FUND, LLC
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
THE DOW(SM) THE DOW(SM) GLOBAL S&P
TARGET 5 DART 10 TARGET 15 TARGET 10
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends ............................................ $ 1,544 $ 5,275 $ 8,052 $ 2,312
Foreign withholding tax on dividend income ........... -- -- (469) --
-------- -------- -------- --------
Total investment income .................... 1,544 5,275 7,583 2,312
-------- -------- -------- --------
EXPENSES:
Investment advisory fee .............................. 233 1,035 1,043 1,887
Administration fee ................................... 7,211 7,211 7,211 7,211
Fund Accounting fee .................................. 12,432 12,455 12,438 12,473
Transfer Agency fee .................................. 6,310 6,745 5,916 6,886
Trustees' fees and expenses .......................... 7,619 7,619 1,016 5,080
Legal fees .......................................... 2,486 2,486 2,486 2,486
Audit fees ........................................... 3,214 3,176 3,176 3,176
Custodian fees ....................................... 7,955 7,955 7,955 7,955
Membership Interest servicing fee .................... 97 431 434 786
Printing fees ........................................ 2,983 2,983 2,983 2,983
Other ................................................ 521 637 340 755
Fees waived and/or expenses reimbursed by
investment advisor ......................... (50,491) (50,149) (42,428) (47,002)
-------- -------- -------- --------
Net expenses ............................... 570 2,584 2,570 4,676
-------- -------- -------- --------
NET INVESTMENT INCOME/(LOSS) ......................... 974 2,691 5,013 (2,364)
-------- -------- -------- --------
NET REALIZED AND UNREALIZED GAIN/
(LOSS) ON INVESTMENTS:
Realized gain/(loss) from:
Securities ........................................ (19,136) (5,481) (17,128) 15,463
Foreign currency transactions ..................... -- -- (108) --
Change in unrealized appreciation/(depreciation) of:
Securities ........................................ 2,067 (23,649) (16,232) (73,970)
Foreign currency and translation of other assets
and liabilities in in foreign currencies ........ -- -- (168) --
-------- -------- -------- --------
Net realized and unrealized gain/(loss) on investments (17,069) (29,130) (33,636) (58,507)
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS .......................... $(16,095) $(26,439) $(28,623) $(60,871)
======== ======== ======== ========
</TABLE>
Page 16 See Notes to Financial Statements.
<PAGE> 18
<TABLE>
<CAPTION>
FIRST TRUST FIRST TRUST
NASDAQ 10 UNCOMMON FIRST TRUST FINANCIAL FIRST TRUST FIRST TRUST FIRST TRUST
TARGET 15 VALUES ENERGY SERVICES INTERNET PHARMACEUTICAL TECHNOLOGY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- ------------ ----------- ------------ ----------- -------------- -----------
<S> <C> <C> <C> <C> <C> <C>
$ 35 $ 674 $ 792 $ 2,207 $ 214 $ 2,088 $ 206
-- -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- --------
35 674 792 2,207 214 2,088 206
-------- -------- -------- -------- -------- -------- --------
4,368 497 387 979 1,257 1,047 1,712
7,211 7,211 7,211 7,211 7,211 7,211 7,211
12,551 12,438 12,432 12,455 12,452 12,450 12,471
8,165 6,133 5,495 5,945 6,736 6,431 6,469
4,572 5,080 508 1,523 6,603 5,080 2,541
2,486 2,486 2,486 2,486 2,486 2,486 2,486
3,176 3,176 3,176 3,176 3,176 3,176 3,176
7,955 7,955 7,955 7,955 7,955 7,955 7,955
1,820 207 161 408 524 436 713
2,983 2,983 2,983 2,983 2,983 2,983 2,983
531 478 484 549 837 754 610
(44,997) (47,412) (42,330) (43,241) (49,112) (47,415) (44,083)
-------- -------- -------- -------- -------- -------- --------
10,821 1,232 948 2,429 3,108 2,594 4,244
-------- -------- -------- -------- -------- -------- --------
(10,786) (558) (156) (222) (2,894) (506) (4,038)
-------- -------- -------- -------- -------- -------- --------
210,123 4,183 2,640 21,414 74,730 16,653 79,213
-- -- -- -- -- -- --
(32,426) (11,497) 25,647 (4,771) (44,166) 61,871 (41,701)
-- -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- --------
177,697 (7,314) 28,287 16,643 30,564 78,524 37,512
$166,911 $ (7,872) $ 28,131 $ 16,421 $ 27,670 $ 78,018 $ 33,474
======== ======== ======== ======== ======== ======== ========
</TABLE>
See Notes to Financial Statements. Page 17
<PAGE> 19
STATEMENTS OF CHANGES IN NET ASSETS
FIRST DEFINED PORTFOLIO FUND, LLC
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
THE DOW(SM) THE DOW(SM) GLOBAL S&P
TARGET 5 DART 10 TARGET 15 TARGET 10
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- --------- ---------
<S> <C> <C> <C> <C>
Net investment income/(loss) ....................... $ 974 $ 2,691 $ 5,013 $ (2,364)
Net realized gain/(loss) on investments and foreign
currency transactions ............................ (19,136) (5,481) (17,236) 15,463
Net change in unrealized appreciation/(depreciation)
of securities and foreign currency transactions
during the period ................................ 2,067 (23,649) (16,400) (73,970)
-------- --------- --------- -----------
Net increase/(decrease) in net assets resulting from
operations ....................................... (16,095) (26,439) (28,623) (60,871)
Net increase in net assets from Membership Interest
transactions ..................................... 10,658 618,724 378,676 862,762
-------- --------- --------- -----------
Net increase/(decrease) in net assets .............. (5,437) 592,285 350,053 801,891
NET ASSETS:
Beginning of period ................................ 80,199 100,863 252,492 272,513
-------- --------- --------- -----------
End of period ...................................... $ 74,762 $ 693,148 $ 602,545 $ 1,074,404
======== ========= ========= ===========
Undistributed net investment income/(accumulated net
investment loss) at end of period ................ $ 1,441 $ 2,937 $ 6,603 $ (2,787)
======== ========= ========= ===========
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
FIRST DEFINED PORTFOLIO FUND, LLC
FOR THE PERIOD ENDED DECEMBER 31, 1999 *
<TABLE>
<CAPTION>
THE DOW(SM) THE DOW(SM) GLOBAL S&P
TARGET 5 DART 10 TARGET 15 TARGET 10
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- --------- ---------
<S> <C> <C> <C> <C>
Net investment income/(loss) ....................... $ 467 $ 246 $ 1,590 $ (423)
Net unrealized appreciation/(depreciation) of
securities during the period ...................... (20,063) (8,268) (8,394) 32,840
-------- --------- --------- ---------
Net increase/(decrease) in net assets resulting from
operations ....................................... (19,596) (8,022) (6,804) 32,417
Net increase in net assets from Membership Interest
transactions ..................................... 99,795 108,885 259,296 240,096
-------- --------- --------- ---------
Net increase in net assets ......................... 80,199 100,863 252,492 272,513
NET ASSETS:
Beginning of period ................................ -- -- -- --
-------- --------- --------- ---------
End of period ...................................... $ 80,199 $ 100,863 $ 252,492 $ 272,513
======== ========= ========= =========
Undistributed net investment income/(accumulated net
investment loss) at end of period .................. $ 467 $ 246 $ 1,590 $ (423)
======== ========= ========= =========
</TABLE>
* The Funds commenced operations on October 6, 1999.
Page 18 See Notes to Financial Statements.
<PAGE> 20
<TABLE>
<CAPTION>
FIRST TRUST FIRST TRUST
NASDAQ 10 UNCOMMON FIRST TRUST FINANCIAL FIRST TRUST FIRST TRUST FIRST TRUST
TARGET 15 VALUES ENERGY SERVICES INTERNET PHARMACEUTICAL TECHNOLOGY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- --------- ----------- ------------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
$ (10,786) $ (558) $ (156) $ (222) $ (2,894) $ (506) $ (4,038)
210,123 4,183 2,640 21,414 74,730 16,653 79,213
(32,426) (11,497) 25,647 (4,771) (44,166) 61,871 (41,701)
----------- --------- --------- --------- --------- --------- ---------
166,911 (7,872) 28,131 16,421 27,670 78,018 33,474
1,778,149 267,028 9,717 229,040 382,661 360,890 603,706
----------- --------- --------- --------- --------- --------- ---------
1,945,060 259,156 37,848 245,461 410,331 438,908 637,180
410,096 125,371 113,986 129,696 187,036 134,715 162,191
----------- --------- --------- --------- --------- --------- ---------
$ 2,355,156 $ 384,527 $ 151,834 $ 375,157 $ 597,367 $ 573,623 $ 799,371
=========== ========= ========= ========= ========= ========= =========
$ (11,389) $ (732) $ (281) $ (271) $ (3,321) $ (713) $ (4,432)
=========== ========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
FIRST TRUST FIRST TRUST
NASDAQ 10 UNCOMMON FIRST TRUST FINANCIAL FIRST TRUST FIRST TRUST FIRST TRUST
TARGET 15 VALUES ENERGY SERVICES INTERNET PHARMACEUTICAL TECHNOLOGY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- --------- ----------- ------------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
$ (603) $ (174) $ (125) $ (49) $ (427) $ (207) $ (394)
81,167 15,482 12,404 4,949 66,380 4,849 36,133
--------- --------- --------- --------- --------- --------- ---------
80,564 15,308 12,279 4,900 65,953 4,642 35,739
329,532 110,063 101,707 124,796 121,083 130,073 126,452
--------- --------- --------- --------- --------- --------- ---------
410,096 125,371 113,986 129,696 187,036 134,715 162,191
-- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- ---------
$ 410,096 $ 125,371 $ 113,986 $ 129,696 $ 187,036 $ 134,715 $ 162,191
========= ========= ========= ========= ========= ========= =========
$ (603) $ (174) $ (125) $ (49) $ (427) $ (207) $ (394)
========= ========= ========= ========= ========= ========= =========
</TABLE>
See Notes to Financial Statements. Page 19
<PAGE> 21
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY
FIRST DEFINED PORTFOLIO FUND, LLC
FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
THE DOW(SM) THE DOW(SM) GLOBAL S&P NASDAQ
TARGET 5 DART 10 TARGET 15 TARGET 10 TARGET 15
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C>
AMOUNT
Sold ................. $ 33,954 $ 660,674 $ 498,597 $ 1,014,767 $ 2,917,242
Redeemed ............. (23,296) (41,950) (119,921) (152,005) (1,139,093)
-------- --------- --------- ----------- -----------
Net increase ......... $ 10,658 $ 618,724 $ 378,676 $ 862,762 $ 1,778,149
======== ========= ========= =========== ===========
MEMBERSHIP INTEREST
Sold ................. 4,984 75,944 60,858 95,222 155,745
Redeemed ............. (3,400) (4,794) (14,832) (14,462) (62,472)
-------- --------- --------- ----------- -----------
Net increase ......... 1,584 71,150 46,026 80,760 93,273
======== ========= ========= =========== ===========
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS - CAPITAL STOCK ACTIVITY
FIRST DEFINED PORTFOLIO FUND, LLC
FOR THE PERIOD ENDED DECEMBER 31, 1999 *
<TABLE>
<CAPTION>
THE DOW(SM) THE DOW(SM) GLOBAL S&P NASDAQ
TARGET 5 DART 10 TARGET 15 TARGET 10 TARGET 15
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C>
AMOUNT
Sold ................. $102,000 $ 111,090 $ 264,830 $ 242,515 $ 334,969
Redeemed ............. (2,205) (2,205) (5,534) (2,419) (5,437)
-------- --------- --------- ----------- -----------
Net increase ......... $ 99,795 $ 108,885 $ 259,296 $ 240,096 $ 329,532
======== ========= ========= =========== ===========
MEMBERSHIP INTEREST
Sold ................. 10,200 11,161 26,556 23,275 28,537
Redeemed ............. (225) (222) (557) (238) (440)
-------- --------- --------- ----------- -----------
Net increase ......... 9,975 10,939 25,999 23,037 28,097
======== ========= ========= =========== ===========
</TABLE>
----------------------------------------------
* The Funds commenced operations on October 6, 1999.
Page 20 See Notes to Financial Statements.
<PAGE> 22
<TABLE>
<CAPTION>
FIRST TRUST 10 FIRST TRUST FIRST TRUST FIRST TRUST FIRST TRUST
UNCOMMON VALUES FIRST TRUST FINANCIAL SERVICES INTERNET PHARMACEUTICAL TECHNOLOGY
PORTFOLIO ENERGY PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- ---------------- ------------------ ----------- -------------- -----------
<S> <C> <C> <C> <C> <C>
$ 277,929 $ 13,312 $ 487,052 $ 585,879 $ 522,447 $ 974,183
(10,901) (3,595) (258,012) (203,218) (161,557) (370,477)
--------- -------- --------- --------- --------- ---------
$ 267,028 $ 9,717 $ 229,040 $ 382,661 $ 360,890 $ 603,706
========= ======== ========= ========= ========= =========
24,587 963 47,187 33,012 47,682 62,301
(878) (292) (23,730) (11,603) (14,645) (24,258)
--------- -------- --------- --------- --------- ---------
23,709 671 23,457 21,409 33,037 38,043
========= ======== ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
FIRST TRUST 10 FIRST TRUST FIRST TRUST FIRST TRUST FIRST TRUST
UNCOMMON VALUES FIRST TRUST FINANCIAL SERVICES INTERNET PHARMACEUTICAL TECHNOLOGY
PORTFOLIO ENERGY PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- ---------------- ------------------ ----------- -------------- -----------
<S> <C> <C> <C> <C> <C>
$ 112,269 $103,919 $ 127,000 $ 123,405 $ 132,285 $ 128,768
(2,206) (2,212) (2,204) (2,322) (2,212) (2,316)
--------- -------- --------- --------- --------- ---------
$ 110,063 $101,707 $ 124,796 $ 121,083 $ 130,073 $ 126,452
========= ======== ========= ========= ========= =========
11,219 10,374 12,579 11,676 13,207 12,320
(219) (221) (219) (224) (220) (226)
--------- -------- --------- --------- --------- ---------
11,000 10,153 12,360 11,452 12,987 12,094
========= ======== ========= ========= ========= =========
</TABLE>
See Notes to Financial Statements. Page 21
<PAGE> 23
FINANCIAL HIGHLIGHTS
THE DOW(SM) TARGET 5 PORTFOLIO
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
06/30/00 ENDED
(UNAUDITED) 12/31/99*
----------- ---------
<S> <C> <C>
Net asset value, beginning of period .................................... $ 8.04 $ 10.00
------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................................... 0.08 0.05
Net realized and unrealized loss on investments ......................... (1.65) (2.01)
------- -------
Total from investment operations ........................................ (1.57) (1.96)
------- -------
Net asset value, end of period .......................................... $ 6.47 $ 8.04
======= =======
TOTAL RETURN + .......................................................... (19.53)% (19.60)%
======= =======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .................................... $ 75 $ 80
Ratio of operating expenses to average net assets ....................... 1.47%** 1.47%**
Ratio of net investment income to average net assets .................... 2.51%** 2.28%**
Portfolio turnover rate ................................................. 81%*** --
Ratio of operating expenses to average net assets without fee waivers and
expenses reimbursed ................................................... 131.57%** 215.88%**
</TABLE>
--------------------------------------------------------------------------------
* The Fund commenced operations on October 6, 1999.
** Annualized.
*** Not annualized.
+ Total return is not annualized for periods less than one year. The total
return would have been lower if certain fees had not been waived and
expenses reimbursed by the investment advisor.
Page 22 See Notes to Financial Statements.
<PAGE> 24
FINANCIAL HIGHLIGHTS
THE DOW(SM) DART 10 PORTFOLIO
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
06/30/00 ENDED
(UNAUDITED) 12/31/99*
----------- ---------
<S> <C> <C>
Net asset value, beginning of period .................................... $ 9.22 $ 10.00
------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................................... 0.06++ 0.02
Net realized and unrealized loss on investments ......................... (0.84) (0.80)
------- -------
Total from investment operations ........................................ (0.78) (0.78)
------- -------
Net asset value, end of period .......................................... $ 8.44 $ 9.22
======= =======
TOTAL RETURN + .......................................................... (8.46)% (7.80)%
======= =======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .................................... $ 693 $ 101
Ratio of operating expenses to average net assets ....................... 1.47%** 1.47%**
Ratio of net investment income to average net assets .................... 1.53%** 1.01%**
Portfolio turnover rate ................................................. 16%*** --
Ratio of operating expenses to average net assets without fee waivers and
expenses reimbursed ................................................... 30.01%** 182.94%**
</TABLE>
-------------------------------------------------------------------------------
* The Fund commenced operations on October 6, 1999.
** Annualized.
*** Not annualized.
+ Total return is not annualized for periods less than one year. The total
return would have been lower if certain fees had not been waived and
expenses reimbursed by the investment advisor.
++ Per share values have been calculated using the average shares method.
See Notes to Financial Statements. Page 23
<PAGE> 25
FINANCIAL HIGHLIGHTS
GLOBAL TARGET 15 PORTFOLIO
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
06/30/00 ENDED
(UNAUDITED) 12/31/99*
----------- ---------
<S> <C> <C>
Net asset value, beginning of period .................................... $ 9.71 $ 10.00
------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ................................................... 0.11++ 0.06
Net realized and unrealized loss on investments ......................... (1.45) (0.35)
------- -------
Total from investment operations ........................................ (1.34) (0.29)
------- -------
Net asset value, end of period .......................................... $ 8.37 $ 9.71
======= =======
TOTAL RETURN + .......................................................... (13.80)% (2.90)%
======= =======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .................................... $ 603 $ 252
Ratio of operating expenses to average net assets ....................... 1.47%** 1.47%**
Ratio of net investment income to average net assets .................... 2.86%** 2.77%**
Portfolio turnover rate ................................................. 38%** --
Ratio of operating expenses to average net assets without fee waivers and
expenses reimbursed ................................................... 25.71%** 51.39%**
</TABLE>
-------------------------------------------------------------------------------
* The Fund commenced operations on October 6, 1999.
** Annualized.
*** Not annualized.
+ Total return is not annualized for periods less than one year. The total
return would have been lower if certain fees had not been waived and
expenses reimbursed by the investment advisor.
++ Per share values have been calculated using the average shares method.
Page 24 See Notes to Financial Statements.
<PAGE> 26
FINANCIAL HIGHLIGHTS
S&P TARGET 10 PORTFOLIO
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
06/30/00 ENDED
(UNAUDITED) 12/31/99*
----------- ---------
<S> <C> <C>
Net asset value, beginning of period .................................... $ 11.83 $ 10.00
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ..................................................... (0.04)++ (0.02)
Net realized and unrealized gain/(loss) on investments .................. (1.44) 1.85
--------- ---------
Total from investment operations ........................................ (1.48) 1.83
--------- ---------
Net asset value, end of period .......................................... $ 10.35 $ 11.83
========= =========
TOTAL RETURN + .......................................................... (12.51)% 18.30 %
========= =========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .................................... $ 1,074 $ 273
Ratio of operating expenses to average net assets ....................... 1.47%** 1.47%**
Ratio of net investment loss to average net assets ...................... (0.74)%** (1.04)%**
Portfolio turnover rate ................................................. 38%*** --
Ratio of operating expenses to average net assets without fee waivers and
expenses reimbursed ................................................... 16.23%** 96.12%**
</TABLE>
-------------------------------------------------------------------------------
* The Fund commenced operations on October 6, 1999.
** Annualized.
*** Not annualized.
+ Total return is not annualized for periods less than one year. The total
return would have been lower if certain fees had not been waived and
expenses reimbursed by the investment advisor.
++ Per share values have been calculated using the average shares method.
See Notes to Financial Statements. Page 25
<PAGE> 27
FINANCIAL HIGHLIGHTS
NASDAQ TARGET 15 PORTFOLIO
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
06/30/00 ENDED
(UNAUDITED) 12/31/99*
--------- ---------
<S> <C> <C>
Net asset value, beginning of period .............................................. $ 14.60 $ 10.00
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ............................................................... (0.13) ++ (0.05) ++
Net realized and unrealized gain on investments ................................... 4.93 4.65
--------- ---------
Total from investment operations .................................................. 4.80 4.60
--------- ---------
Net asset value, end of period .................................................... $ 19.40 $ 14.60
========= =========
TOTAL RETURN + .................................................................... 32.88% 46.00%
========= =========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .............................................. $ 2,355 $ 410
Ratio of operating expenses to average net assets ................................. 1.47%** 1.47%**
Ratio of net investment loss to average net assets ................................ (1.46)%** (1.44)%**
Portfolio turnover rate ........................................................... 72%*** --
Ratio of operating expenses to average net assets without fee waivers and
expenses reimbursed ............................................................. 7.56%** 90.16%**
</TABLE>
--------------------------------------------------------------------------------
* The Fund commenced operations on October 6, 1999.
** Annualized.
*** Not annualized.
+ Total return is not annualized for periods less than one year. The
total return would have been lower if certain fees had not been waived
and expenses reimbursed by the investment advisor.
++ Per share values have been calculated using the average shares method.
Page 26 See Notes to Financial Statements.
<PAGE> 28
FINANCIAL HIGHLIGHTS
FIRST TRUST 10 UNCOMMON VALUES PORTFOLIO
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
06/30/00 ENDED
(UNAUDITED) 12/31/99*
------- -------
<S> <C> <C>
Net asset value, beginning of period ................................................ $ 11.40 $ 10.00
------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ................................................................. (0.03)++ (0.02)
Net realized and unrealized gain/(loss) on investments .............................. (0.29) 1.42
------- -------
Total from investment operations .................................................... (0.32) 1.40
------- -------
Net asset value, end of period ...................................................... $ 11.08 $ 11.40
======= =======
TOTAL RETURN + ...................................................................... (2.46)% 14.00%
======= =======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ................................................ $ 385 $ 125
Ratio of operating expenses to average net assets ................................... 1.47%** 1.47%**
Ratio of net investment loss to average net assets .................................. (0.67)%** (0.65)%**
Portfolio turnover rate ............................................................. 93%*** --
Ratio of operating expenses to average net assets without fee waivers and
expenses reimbursed ............................................................... 58.06%** 144.82%**
</TABLE>
--------------------------------------------------------------------------------
* The Fund commenced operations on October 6, 1999.
** Annualized.
*** Not annualized.
+ Total return is not annualized for periods less than one year. The
total return would have been lower if certain fees had not been waived
and expenses reimbursed by the investment advisor.
++ Per share values have been calculated using the average shares method.
See Notes to Financial Statements. Page 27
<PAGE> 29
FINANCIAL HIGHLIGHTS
FIRST TRUST ENERGY PORTFOLIO
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
06/30/00 ENDED
(UNAUDITED) 12/31/99*
------- -------
<S> <C> <C>
Net asset value, beginning of period ................................................ $ 11.23 $ 10.00
------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ................................................................. (0.01) (0.01)
Net realized and unrealized gain on investments ..................................... 2.81 1.24
------- -------
Total from investment operations .................................................... 2.80 1.23
------- -------
Net asset value, end of period ...................................................... $ 14.03 $ 11.23
======= =======
TOTAL RETURN + ...................................................................... 24.93% 12.30%
======= =======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ................................................ $ 152 $ 114
Ratio of operating expenses to average net assets ................................... 1.47%** 1.47%**
Ratio of net investment loss to average net assets .................................. (0.24)%** (0.50)%**
Portfolio turnover rate ............................................................. 20%*** --
Ratio of operating expenses to average net assets without fee waivers and
expenses reimbursed ............................................................... 66.92%** 111.63%**
</TABLE>
--------------------------------------------------------------------------------
* The Fund commenced operations on October 6, 1999.
** Annualized.
*** Not annualized.
+ Total return is not annualized for periods less than one year. The
total return would have been lower if certain fees had not been waived
and expenses reimbursed by the investment advisor.
Page 28 See Notes to Financial Statements.
<PAGE> 30
FINANCIAL HIGHLIGHTS
FIRST TRUST FINANCIAL SERVICES PORTFOLIO
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
06/30/00 ENDED
(UNAUDITED) 12/31/99*
------- -------
<S> <C> <C>
Net asset value, beginning of period ................................................ $ 10.49 $ 10.00
------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ................................................................. (0.01)++ (0.00)#
Net realized and unrealized gain/(loss) on investments .............................. (0.01) 0.49
------- -------
Total from investment operations .................................................... (0.02) 0.49
------- -------
Net asset value, end of period ...................................................... $ 10.47 $ 10.49
======= =======
TOTAL RETURN + ...................................................................... (0.19)% 4.90%
======= =======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ................................................ $ 375 $ 130
Ratio of operating expenses to average net assets ................................... 1.47%** 1.47%**
Ratio of net investment loss to average net assets .................................. (0.13)%** (0.19)%**
Portfolio turnover rate ............................................................. 73%*** --
Ratio of operating expenses to average net assets without fee waivers and
expenses reimbursed ............................................................... 27.72%** 115.6%**
</TABLE>
--------------------------------------------------------------------------------
* The Fund commenced operations on October 6, 1999.
** Annualized.
*** Not annualized.
+ Total return is not annualized for periods less than one year. The
total return would have been lower if certain fees had not been waived
and expenses reimbursed by the investment advisor.
++ Per share values have been calculated using the average shares method.
# Amount represents less than $0.01 per share.
See Notes to Financial Statements. Page 29
<PAGE> 31
FINANCIAL HIGHLIGHTS
FIRST TRUST INTERNET PORTFOLIO
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
06/30/00 ENDED
(UNAUDITED) 12/31/99*
------- -------
<S> <C> <C>
Net asset value, beginning of period ................................................ $ 16.33 $ 10.00
------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ................................................................. (0.12)++ (0.04)
Net realized and unrealized gain on investments ..................................... 1.97 6.37
------- -------
Total from investment operations .................................................... 1.85 6.33
------- -------
Net asset value, end of period ...................................................... $ 18.18 $ 16.33
======= =======
TOTAL RETURN + ...................................................................... 11.33% 63.30%
======= =======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ................................................ $ 597 $ 187
Ratio of operating expenses to average net assets ................................... 1.47%** 1.47%**
Ratio of net investment loss to average net assets .................................. (1.37)%** (1.37)%**
Portfolio turnover rate ............................................................. 64%*** --
Ratio of operating expenses to average net assets without fee waivers and
expenses reimbursed ............................................................... 24.67%** 136.02%**
</TABLE>
------------------
* The Fund commenced operations on October 6, 1999.
** Annualized.
*** Not annualized.
+ Total return is not annualized for periods less than one year. The
total return would have been lower if certain fees had not been waived
and expenses reimbursed by the investment advisor.
++ Per share values have been calculated using the average shares method.
Page 30 See Notes to Financial Statements.
<PAGE> 32
FINANCIAL HIGHLIGHTS
FIRST TRUST PHARMACEUTICAL PORTFOLIO
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
06/30/00 ENDED
(UNAUDITED) 12/31/99*
------- -------
<S> <C> <C>
Net asset value, beginning of period .................................................. $ 10.37 $ 10.00
------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ................................................................... (0.02) ++ (0.02)
Net realized and unrealized gain on investments ....................................... 2.11 0.39
------- -------
Total from investment operations ...................................................... 2.09 0.37
------- -------
Net asset value, end of period ........................................................ $ 12.46 $ 10.37
======= =======
TOTAL RETURN + ........................................................................ 20.15% 3.70%
======= =======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .................................................. $ 574 $ 135
Ratio of operating expenses to average net assets ..................................... 1.47%** 1.47%**
Ratio of net investment loss to average net assets .................................... (0.29)%** (0.79%)**
Portfolio turnover rate ............................................................... 46%*** --
Ratio of operating expenses to average net assets without fee waivers and
expenses reimbursed ................................................................. 28.31%** 147.68%**
</TABLE>
------------------
* The Fund commenced operations on October 6, 1999.
** Annualized.
*** Not annualized.
+ Total return is not annualized for periods less than one year. The
total return would have been lower if certain fees had not been waived
and expenses reimbursed by the investment advisor.
++ Per share values have been calculated using the average shares method.
See Notes to Financial Statements. Page 31
<PAGE> 33
FINANCIAL HIGHLIGHTS
FIRST TRUST TECHNOLOGY PORTFOLIO
FOR A MEMBERSHIP INTEREST OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD
06/30/00 ENDED
(UNAUDITED) 12/31/99*
------- -------
<S> <C> <C>
Net asset value, beginning of period ................................................ $ 13.41 $ 10.00
------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss ................................................................. (0.11)++ (0.03)
Net realized and unrealized gain on investments ..................................... 2.64 3.44
------- -------
Total from investment operations .................................................... 2.53 3.41
------- -------
Net asset value, end of period ...................................................... $ 15.94 $ 13.41
======= =======
TOTAL RETURN + ...................................................................... 18.87% 34.10%
======= =======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ................................................ $ 799 $ 162
Ratio of operating expenses to average net assets ................................... 1.47%** 1.47%**
Ratio of net investment loss to average net assets .................................. (1.40)%** (1.38)%**
Portfolio turnover rate ............................................................. 101%*** --
Ratio of operating expenses to average net assets without fee waivers and
expenses reimbursed ............................................................... 16.73%** 115.26%**
</TABLE>
------------------
* The Fund commenced operations on October 6, 1999.
** Annualized.
*** Not annualized.
+ Total return is not annualized for periods less than one year. The
total return would have been lower if certain fees had not been waived
and expenses reimbursed by the investment advisor.
++ Per share values have been calculated using the average shares method.
Page 32 See Notes to Financial Statements.
<PAGE> 34
NOTES TO FINANCIAL STATEMENTS
FIRST DEFINED PORTFOLIO FUND, LLC
JUNE 30, 2000 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
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 eleven managed investment portfolios that may be divided into
two general categories: The Dow(SM) Target 5 Portfolio, The Dow(SM) DART 10
Portfolio, Global Target 15 Portfolio, S&P Target 10 Portfolio, NASDAQ Target 15
Portfolio and First Trust 10 Uncommon Values Portfolio, (the "Strategy Funds");
and, First Trust Energy Portfolio, First Trust Financial Services Portfolio,
First Trust Internet Portfolio, First Trust Pharmaceutical Portfolio, and First
Trust Technology Portfolio, (the "Sector Funds"), (each, a "Fund", collectively,
the "Funds"). Under Delaware law, a limited liability company does not issue
shares of stock. Instead, ownership rights are contained in membership interests
(each, an "Interest", collectively, the "Interests"). Each Interest represents
an undivided interest in the net assets of a Fund's portfolio. Fund Interests
are not offered directly to the public. Fund Interests are sold only to American
Skandia Life Assurance Corporation Variable Account B ("Account B") to fund the
benefits of variable annuity policies (the "Policies") issued by American
Skandia. The following is a summary of significant accounting policies
consistently followed by the Funds in the preparation of their financial
statements. The preparation of financial statements in accordance with generally
accepted accounting principles 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.
PORTFOLIO VALUATION:
Generally, a Fund's investments are valued at market value or, in the absence of
market value with respect to any portfolio securities, at fair value as
determined by, or under the direction of, the Board of Trustees of the
Registrant. Portfolio securities for which the primary market is a domestic or
foreign exchange, or which are traded over-the-counter and quoted on the NASDAQ
System, are valued at the last sale price on the day of valuation or, if there
was no sale that day, at the last reported bid price using prices as of the
close of trading. Portfolio securities not quoted on the NASDAQ System that are
actively traded in the over-the-counter market, including listed securities for
which the primary market is believed to be over-the-counter, are valued at the
most recently quoted bid price provided by the principal market makers.
Securities for which quotations are not readily available are valued at fair
value as determined under the direction of the Board of Trustees. Short-term
investments that mature in 60 days or less are valued at amortized cost.
Foreign securities traded outside the United States are generally valued as of
the time their trading is complete, which is usually different from the close of
the New York Stock Exchange. Occasionally, events affecting the value of such
securities may occur between such times and the close of the New York Stock
Exchange that will not be reflected in the computation of a Fund's net asset
value. If events materially affecting the value of such securities occur during
such period, these securities will be valued at their fair value according to
procedures decided upon in good faith by the Registrant's Board of Trustees. All
securities and other assets of a Fund initially expressed in foreign currencies
will be converted to U.S. dollars using exchange rates in effect at the time of
valuation.
Page 33
<PAGE> 35
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
FIRST DEFINED PORTFOLIO FUND, LLC
JUNE 30, 2000 (UNAUDITED)
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.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date; interest income is not accrued
until settlement date. Each Fund instructs the custodian to segregate assets of
the Fund with a current value at least equal to the amount of its when-issued
purchase commitments.
FOREIGN CURRENCY:
The books and records of the Funds 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 unrealized appreciation/(depreciation) of investments and net
other assets. 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 realized gains and losses on
investment securities sold.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income and net realized long-term and short-term
capital gains of all Funds may be paid with such frequency (monthly or
otherwise) as the Board of Trustees may determine from time to time. All
dividends paid by a Fund will be reinvested into additional Interests.
FEDERAL 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 part of the
operations of American Skandia and is not taxed separately. The Registrant does
not intend to qualify as a "regulated investment company" under Subchapter M of
the Internal Revenue Code. Under current tax law, interest, dividend income and
capital gains of the Registrant are not currently taxable when left to
accumulate within a variable annuity contract. As such, no federal income tax
provision is required.
EXPENSES:
Expenses that are directly related to one of the Funds are charged directly to
that Fund. General expenses of the Registrant are allocated to all the Funds
based upon the relative net assets of each Fund.
Page 34
<PAGE> 36
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
FIRST DEFINED PORTFOLIO FUND, LLC
JUNE 30, 2000 (UNAUDITED)
2. INVESTMENT ADVISORY FEE AND OTHER AFFILIATED TRANSACTIONS
First Trust Advisors L.P. ("First Trust") is a limited partnership with one
limited partner, Grace Partners of DuPage L.P., and one general partner, Nike'
Securities Corporation. First Trust serves as investment advisor to the Funds
pursuant to an Investment Advisory and Management Agreement. First Trust
provides each Fund 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 Funds average daily
net assets.
From time to time First Trust may waive a portion or all of the fees otherwise
payable to it and/or reimburse expenses. First Trust has voluntarily undertaken
to waive its fees and reimburse expenses through September 30, 2001, so that
total expenses do not exceed 1.47% of each Fund's average daily net assets.
However, with respect to First Trust 10 Uncommon Values Portfolio, First Trust
has agreed to waive fees and reimburse expenses so that total expenses do not
exceed 1.47% and 1.37% of the average daily net asset value of the fund through
July 1, 2000 and September 30, 2001, respectively. The fees waived and
reimbursed, for the six months ended June 30, 2000, by the advisor, are as
follows:
<TABLE>
<CAPTION>
FEES WAIVED EXPENSES REIMBURSED
----------- -------------------
<S> <C> <C>
The Dow(SM) Target 5 Portfolio ........................................ $ 233 $50,258
The Dow(SM) DART 10 Portfolio ......................................... 1,035 49,114
Global Target 15 Portfolio ............................................ 1,043 41,385
S&P Target 10 Portfolio ............................................... 1,887 45,115
NASDAQ Target 15 Portfolio ............................................ 4,368 40,629
First Trust 10 Uncommon Values Portfolio .............................. 497 46,915
First Trust Energy Portfolio .......................................... 387 41,943
First Trust Financial Services Portfolio .............................. 979 42,262
First Trust Internet Portfolio ........................................ 1,257 47,855
First Trust Pharmaceutical Portfolio .................................. 1,047 46,368
First Trust Technology Portfolio ...................................... 1,712 42,371
</TABLE>
PFPC Inc. ("PFPC"), serves as the Registrant's administrator. In addition, PFPC
also provides certain fund accounting, custody administration and transfer
agency services in accordance with certain fee arrangements.
The Chase Manhattan Bank serves as the custodian to the Funds.
No officer or employee of First Trust or Nike' Securities L.P. (Nike'
Securities) received any compensation from the Registrant for serving as an
officer or Trustee of the Registrant. The Registrant pays each Trustee who is
not an officer or employee of First Trust or Nike' Securities or any of their
affiliates $15,000 per annum plus $125 per portfolio per regularly scheduled
meeting attended, $500 per committee meeting attended and reimbursement for
travel and out-of-pocket expenses.
Page 35
<PAGE> 37
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
FIRST DEFINED PORTFOLIO FUND, LLC
JUNE 30, 2000 (UNAUDITED)
3. 12b-1 SERVICING PLAN
The Registrant, on behalf of each Fund, 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 Funds will be subject to an annual service fee.
Nike' Securities serves as the selling agent and distributor of Interests of the
Funds. In this capacity, Nike' Securities manages the offering of the Funds'
Interests and is responsible for all sales and promotional activities. The Plan
reimburses Nike' Securities for its costs in connection with these activities.
Nike' Securities also uses the service fee to compensate American Skandia for
providing account services to policy owners. These services include establishing
and maintaining policy owner accounts, answering inquiries, and providing
personal services to policy owners. Each Fund may spend up to 0.25 of 1% 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 Nike' Securities for expenses incurred in connection
with the sales and distribution of a Fund's Interest 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 Interests holders and policy owners used in connection with the sale
of a Fund's Interests, certain other expenses associated with the distribution
of the Funds, and any distribution-related expenses that may be authorized by
the Trustees.
4. PURCHASES AND SALES OF SECURITIES
Purchases and proceeds from sales of securities, excluding U.S. Government and
short-term investments, for the six months ended June 30, 2000 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
--------- -----
<S> <C> <C>
The Dow(SM) Target 5 Portfolio ..................................... $ 67,285 $ 58,934
The Dow(SM) DART 10 Portfolio ...................................... 620,771 55,200
Global Target 15 Portfolio ......................................... 486,581 133,382
S&P Target 10 Portfolio ............................................ 1,195,186 241,706
NASDAQ Target 15 Portfolio ......................................... 2,930,148 1,079,396
First Trust 10 Uncommon Values Portfolio ........................... 450,135 174,717
First Trust Energy Portfolio ....................................... 27,550 26,370
First Trust Financial Services Portfolio ........................... 485,243 223,988
First Trust Internet Portfolio ..................................... 657,350 259,910
First Trust Pharmaceutical Portfolio ............................... 515,414 152,060
First Trust Technology Portfolio ................................... 1,147,296 551,343
</TABLE>
5. MEMBERSHIP INTEREST
The Registrant has authorized an unlimited number of Membership Interests
without par value of one or more series.
Page 36
<PAGE> 38
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
FIRST DEFINED PORTFOLIO FUND, LLC
JUNE 30, 2000 (UNAUDITED)
6. CONCENTRATION OF RISK
The Funds may invest in foreign securities. Investing in securities of foreign
companies and foreign 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 foreign
companies and foreign 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. Each Fund may invest up to 15% of its net assets in
illiquid securities, including securities that are not readily marketable,
securities that are restricted as to disposition under Federal securities laws
or otherwise, repurchase agreements maturing in more than seven days, interest
only and principal only mortgage-backed securities, certain options traded in
the over-the-counter market and the securities to which such options relate. In
purchasing securities which cannot be sold by a Fund without registration under
the Securities Act of 1933, as amended, a Fund will endeavor to obtain the right
to registration at the expense of the issuer. There generally will be a lapse of
time between the decision by a Fund to sell any such security and the
registration of the security permitting the sale. During any such period, the
security will be subject to market fluctuations.
Each Fund 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 Fund may
therefore invest a relatively high percentage of its assets in a limited number
of issuers. This can expose each Fund to potentially greater market fluctuations
than might be experienced by a diversified fund. Each Fund may be more
susceptible to any single economic, political or regulatory occurrence and to
the financial conditions of the issuer in which it invests.
Page 37
