-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HsIBx+gmac0A6SsqdavC17un8smQUENR8uw066DWvKzmbhbQKSgpIimp6rh91Zru DezYtv/qg96l3Pw850p8nw== 0000875626-06-000551.txt : 20060324 0000875626-06-000551.hdr.sgml : 20060324 20060324115628 ACCESSION NUMBER: 0000875626-06-000551 CONFORMED SUBMISSION TYPE: 40-17G/A PUBLIC DOCUMENT COUNT: 4 FILED AS OF DATE: 20060324 DATE AS OF CHANGE: 20060324 EFFECTIVENESS DATE: 20060324 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST TRUST FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II CENTRAL INDEX KEY: 0001282850 IRS NUMBER: 113716541 FILING VALUES: FORM TYPE: 40-17G/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-21539 FILM NUMBER: 06708086 BUSINESS ADDRESS: STREET 1: 1001 WARRENVILLE ROAD STREET 2: SUITE 300 CITY: LISLE STATE: IL ZIP: 60532 BUSINESS PHONE: 6302414141 MAIL ADDRESS: STREET 1: 1001 WARRENVILLE ROAD STREET 2: SUITE 300 CITY: LISLE STATE: IL ZIP: 60532 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST TRUST/FIDAC MORTGAGE INCOME FUND CENTRAL INDEX KEY: 0001319183 IRS NUMBER: 356758396 FILING VALUES: FORM TYPE: 40-17G/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-21727 FILM NUMBER: 06708082 BUSINESS ADDRESS: STREET 1: 1001 WARRENVILLE ROAD, SUITE 300 CITY: LISLE STATE: IL ZIP: 60532 BUSINESS PHONE: 630-241-4141 MAIL ADDRESS: STREET 1: 1001 WARRENVILLE ROAD, SUITE 300 CITY: LISLE STATE: IL ZIP: 60532 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST DEFINED PORTFOLIO MANAGEMENT FUND LLC CENTRAL INDEX KEY: 0001076487 IRS NUMBER: 000000000 STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 40-17G/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-09235 FILM NUMBER: 06708093 BUSINESS ADDRESS: STREET 1: C/O NIKE SECURITIES LP STREET 2: 1001 WARRENVILLE ROAD CITY: LISLE STATE: IL ZIP: 60532 BUSINESS PHONE: 6302418752 MAIL ADDRESS: STREET 1: C/O NIKE SECURITIES LP STREET 2: 1001 WARRENVILLE ROAD CITY: LISLE STATE: IL ZIP: 60532 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND CENTRAL INDEX KEY: 0001232461 IRS NUMBER: 806022558 FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 40-17G/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-21344 FILM NUMBER: 06708087 BUSINESS ADDRESS: STREET 1: 1001 WARRENVILLE ROAD STREET 2: SUITE 300 CITY: LISLE STATE: IL ZIP: 60532 BUSINESS PHONE: 6302414141 MAIL ADDRESS: STREET 1: 1001 WARRENVILLE ROAD STREET 2: SUITE 300 CITY: LISLE STATE: IL ZIP: 60532 FORMER COMPANY: FORMER CONFORMED NAME: FOUR CORNERS CLAYMORE CORPORATE HIGH INCOME PORTFOLIO DATE OF NAME CHANGE: 20030513 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST TRUST VALUE LINE DIVIDEND FUND CENTRAL INDEX KEY: 0001244943 IRS NUMBER: 571173626 FILING VALUES: FORM TYPE: 40-17G/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-21381 FILM NUMBER: 06708089 BUSINESS ADDRESS: STREET 1: C/O FIRST TRUST PORTFOLIOS LP STREET 2: 1001 VARRENVILLE RD. #3000 CITY: LISLE STATE: IL ZIP: 60532 BUSINESS PHONE: 6302414141 MAIL ADDRESS: STREET 1: C/O FIRST TRUST PORTFOLIOS LP STREET 2: 1001 WARRENVILLE RD #3000 CITY: LISLE STATE: IL ZIP: 60532 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST TRUST VALUE LINE R & IBBOTSON EQUITY ALLOCATION FUND CENTRAL INDEX KEY: 0001264352 IRS NUMBER: 300233832 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 40-17G/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-21517 FILM NUMBER: 06708088 BUSINESS ADDRESS: STREET 1: FIRST TRUST PORTFOLIOS LP STREET 2: 1001 WARRENVILLE RD STE 300 CITY: LISLE STATE: IL ZIP: 60532 BUSINESS PHONE: 6302414141 MAIL ADDRESS: STREET 1: FIRST TRUST PORTFOLIOS LP STREET 2: 1001 WARRENVILLE RD STE 300 CITY: LISLE STATE: IL ZIP: 60532 FORMER COMPANY: FORMER CONFORMED NAME: FIRST TRUST VALUE LINE R & IBBOTSON EQUITY ALLOCATION FUND DATE OF NAME CHANGE: 20040225 FORMER COMPANY: FORMER CONFORMED NAME: FIRST TRUST PALISADE TOTAL RETURN CONVERTIBLE SEC FUND DATE OF NAME CHANGE: 20030923 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MACQUARIE/FIRST TRUST GLOBAL INFRASTR/UTIL DIV & INC FUND CENTRAL INDEX KEY: 0001276469 IRS NUMBER: 593779311 FILING VALUES: FORM TYPE: 40-17G/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-21496 FILM NUMBER: 06708084 BUSINESS ADDRESS: STREET 1: FIRST TRUST PORTFOLIOS LP STREET 2: 1001 WARRENVILLE RD STE 300 CITY: LISLE STATE: IL ZIP: 60532 BUSINESS PHONE: 6302414141 MAIL ADDRESS: STREET 1: FIRST TRUST PORTFOLIOS LP STREET 2: 1001 WARRENVILLE RD STE 300 CITY: LISLE STATE: IL ZIP: 60532 FORMER COMPANY: FORMER CONFORMED NAME: MACQUARIE FIRST TRUST GLOBAL INFRASTR DIVIDEND & INCOME FUND DATE OF NAME CHANGE: 20040123 FORMER COMPANY: FORMER CONFORMED NAME: MACQUARIE FIRST TRUST GLOBAL INFRASTRUCTURE DIVIDEND FUND DATE OF NAME CHANGE: 20040114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENERGY INCOME & GROWTH FUND CENTRAL INDEX KEY: 0001284940 IRS NUMBER: 113716544 FILING VALUES: FORM TYPE: 40-17G/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-21549 FILM NUMBER: 06708085 BUSINESS ADDRESS: STREET 1: FIRST TRUST PORTFOLIOS L P STREET 2: 1001 WARRENVILLE RD. CITY: LISLE STATE: IL ZIP: 60532 BUSINESS PHONE: 630-241-4141 MAIL ADDRESS: STREET 1: FIRST TRUST PORTFOLIOS L P STREET 2: 1001 WARRENVILLE RD. CITY: LISLE STATE: IL ZIP: 60532 FILER: COMPANY DATA: COMPANY CONFORMED NAME: First Trust/Fiduciary Asset Management Covered Call Fund CENTRAL INDEX KEY: 0001291334 IRS NUMBER: 300261406 FILING VALUES: FORM TYPE: 40-17G/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-21586 FILM NUMBER: 06708091 BUSINESS ADDRESS: STREET 1: C/O FIRST TRUST PORTFOLIOS L.P. STREET 2: 1001 WARRENVILLE ROAD, SUITE 300 CITY: LISLE STATE: IL ZIP: 60532 BUSINESS PHONE: 630-241-4141 MAIL ADDRESS: STREET 1: C/O FIRST TRUST PORTFOLIOS L.P. STREET 2: 1001 WARRENVILLE ROAD, SUITE 300 CITY: LISLE STATE: IL ZIP: 60532 FORMER COMPANY: FORMER CONFORMED NAME: First Trust/Fiduciary Asset Management Covered Call Income Fund DATE OF NAME CHANGE: 20040521 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND CENTRAL INDEX KEY: 0001302624 IRS NUMBER: 736357662 FILING VALUES: FORM TYPE: 40-17G/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-21636 FILM NUMBER: 06708083 BUSINESS ADDRESS: STREET 1: 1001 WARRENVILLE ROAD, SUITE 300 CITY: LISLE STATE: IL ZIP: 60532 BUSINESS PHONE: 630-241-4141 MAIL ADDRESS: STREET 1: 1001 WARRENVILLE ROAD, SUITE 300 CITY: LISLE STATE: IL ZIP: 60532 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST TRUST STRATEGIC HIGH INCOME FUND CENTRAL INDEX KEY: 0001323520 IRS NUMBER: 202917153 FILING VALUES: FORM TYPE: 40-17G/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-21756 FILM NUMBER: 06708092 BUSINESS ADDRESS: STREET 1: 1001 WARRENVILLE ROAD STREET 2: SUITE 300 CITY: LISLE STATE: IL ZIP: 60532 BUSINESS PHONE: 630-241-4141 MAIL ADDRESS: STREET 1: 1001 WARRENVILLE ROAD STREET 2: SUITE 300 CITY: LISLE STATE: IL ZIP: 60532 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST TRUST VALUE LINE R 100 FUND CENTRAL INDEX KEY: 0001228391 IRS NUMBER: 412094525 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 40-17G/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-21336 FILM NUMBER: 06708090 BUSINESS ADDRESS: STREET 1: FIRST TRUST PORTFOLIOS LP STREET 2: 1001 WARRENVILLE RD SUITE 300 CITY: LISLE STATE: IL ZIP: 60532 BUSINESS PHONE: 6302414141 MAIL ADDRESS: STREET 1: FIRST TRUST PORTFOLIOS LP STREET 2: 1001 WARRENVILLE RD SUITE 300 CITY: LISLE STATE: IL ZIP: 60532 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST TRUST EXCHANGE-TRADED FUND CENTRAL INDEX KEY: 0001329377 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: 40-17G/A SEC ACT: 1940 Act SEC FILE NUMBER: 811-21774 FILM NUMBER: 06708081 BUSINESS ADDRESS: STREET 1: 1001 WARRENVILLE ROAD, SUITE 300 CITY: LISLE STATE: IL ZIP: 60532 BUSINESS PHONE: 630-241-4141 MAIL ADDRESS: STREET 1: 1001 WARRENVILLE ROAD, SUITE 300 CITY: LISLE STATE: IL ZIP: 60532 40-17G/A 1 funds_17g.txt AMENDED FIDELITY BOND March 24, 2006 VIA EDGAR Securities and Exchange Commission 100 F Street, NE Washington, D.C. 20549 Re:Rule 17g-1 Fidelity Bond Filing-Information with Respect to Joint Fidelity Bond filing under Investment Company Act Rule 17g-1, Bond No 81906399 for the following management investment companies (Investment Company Act of 1940 File Number/SEC Registration Number): First Defined Portfolio Fund, LLC (File No. 811-10015/SEC Registration No. 333-46062); First Trust Value Line(R) 100 Fund (File No. 811-21336/ SEC Registration No. 333-104680); First Trust Value Line(R) Dividend Fund (File No. 811-21381/SEC Registration No. 333-106392); First Trust/Four Corners Senior Floating Rate Income Fund (File No. 811-21344/SEC Registration Nos. 333-105251 and 333-109680); Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund (File No. 811-21496/SEC Registration No. 333-112202); First Trust/Value Line(R) & Ibbotson Equity Allocation Fund (File No. 811-21517/SEC Registration Nos. 333-113080 and 333-114949); First Trust/Four Corners Senior Floating Rate Income Fund II (File No. 811-21539/SEC Registration Nos. 333-113978 and 333-115414); Energy Income and Growth Fund (File No. 811-21549/SEC Registration Nos. 333-114131, 333-120853 and 333-116841); First Trust/Fiduciary Asset Management Covered Call Fund (File No. 811-21586/SEC Registration No. 333-116023), First Trust/Aberdeen Global Opportunity Income Fund (File No. 811-21636/SEC Registration No. 333-119081), First Trust/FIDAC Mortgage Income Fund (File No.811-21727/SEC Registration No.333-123262), First Trust Strategic High Income Fund (File No.811-21756/SEC Registration No. 333-124146), First Trust Exchange-Traded Fund (File No. 811-21774/SEC Registration No. 333-125751) - ------------------------------------------------------------------------------- Dear Sir or Madam: Enclosed for filing, pursuant to Rule 17g-1 of the Investment Company Act of 1940, as amended, please find the following information with respect to the First Trust complex of funds referenced above. Please note for the Commission's records, the following: (i) a copy of the Joint Insured Fidelity Bond with a schedule of individual named insureds dated January 17, 2006. The limit of liability for the Joint Insured Fidelity Bond is $9,425,000. (ii) a Certificate of Assistant Secretary containing the form of resolutions of the Board of Trustees approving the amount, type, form and coverage of the Fidelity Bond, the amount of the single insured bond which the registrant would have provided had it not been named as an insured under the Fidelity Bond, and a statement as to the period for which premiums have been paid; and (iii) a copy of the Blanket Bond Insurance Agreement. Very truly yours, FIRST TRUST PORTFOLIOS L.P. /s/ Kristi A. Maher ------------------------ Assistant General Counsel Enclosures EX-99 2 exhibit1_bond.txt AMENDED JOINT INSURED FIDELITY BOND
Chubb Group of Insurance Companies DECLARATIONS FINANCIAL INSTITUTION INVESTMENT 15 Mountain View Road COMPANY ASSET PROTECTION BOND Warren, New Jersey 07059 NAME OF ASSURED (including its Subsidiaries): Bond Number: 81906399 FIRST TRUST ADVISORS, LP ETAL FEDERAL INSURANCE COMPANY 1001 WARRENVILLE ROAD, SUITE 300 Incorporated under the laws of Indiana LISLE, ILL 60532 a stock insurance company herein called the COMPANY Capital Center, 251 North Illinois, Suite 1100 Indianapolis, IN 46204-1927
________________________________________________________________________________ ITEM 1. BOND PERIOD: from 12:01 a.m. on October 9, 2005 to 12:01 a.m. on October 9, 2006 ITEM 2. LIMITS OF LIABILITY--DEDUCTIBLE AMOUNTS: If "Not Covered" is inserted below opposite any specified INSURING CLAUSE, such INSURING CLAUSE and any other reference shall be deemed to be deleted. THERE SHALL BE NO DEDUCTIBLE APPLICABLE TO ANY LOSS UNDER INSURING CLAUSE 1. SUSTAINED BY ANY INVESTMENT COMPANY.
DEDUCTIBLE INSURING CLAUSE LIMIT OF LIABILITY AMOUNT --------------- ------------------ ---------- 1. Employee $ 9,425,000 $ 50,000 2. On Premises $ 9,425,000 $ 50,000 3. In Transit $ 9,425,000 $ 50,000 4. Forgery or Alteration $ 9,425,000 $ 50,000 5. Extended Forgery $ 9,425,000 $ 50,000 6. Counterfeit Money $ 9,425,000 $ 50,000 7. Threats to Person $ 9,425,000 $ 50,000 8. Computer System $ 9,425,000 $ 50,000 9. Voice Initiated Funds Transfer Instruction $ 9,425,000 $ 50,000 10. Uncollectible Items of Deposit $ 9,425,000 $ 50,000 11. Audit Expense $ 50,000 $ N/A
ITEM 3. THE LIABILITY OF THE COMPANY IS ALSO SUBJECT TO THE TERMS OF THE FOLLOWING ENDORSEMENTS EXECUTED SIMULTANEOUSLY HEREWITH: 1) Premium Endorsement; 2) Name of Assured Endorsement; 3) Deleting Valuation-Other Property Endorsement; 4) Compliance w/Applicable Trade Sanctions Laws. IN WITNESS WHEREOF, THE COMPANY has caused this Bond to be signed by its authorized officers, but it shall not be valid unless also signed by an authorized representative of the Company. /s/ W. Andrew Macan /s/ Thomas F. Motamed Secretary President Countersigned by ___________________ /s/ Robert Hamburger ____________________________ Authorized Representative ________________________________________________________________________________ ICAP Bond (5-98) - Federal Form 17-02-1421 (Ed. 5-98) Page 1 of 1 CHUBB [GRAPHIC OMITTED] ________________________________________________________________________________ The COMPANY, in consideration of payment of the required premium, and in reliance on the APPLICATION and all other statements made and information furnished to the COMPANY by the ASSURED, and subject to the DECLARATIONS made a part of this Bond and to all other terms and conditions of this Bond, agrees to pay the ASSURED for: ________________________________________________________________________________ INSURING CLAUSES Employee 1. Loss resulting directly from LARCENY or EMBEZZLEMENT committed by any EMPLOYEE, alone or in collusion with others. ________________________________________________________________________________ On Premises 2. Loss of PROPERTY resulting directly from robbery, burglary, false pretenses, common law or statutory larceny, misplacement, mysterious unexplainable disappearance, damage, destruction or removal, from the possession, custody or control of the ASSURED, while such PROPERTY is lodged or deposited at premises located anywhere. ________________________________________________________________________________ In Transit 3. Loss of PROPERTY resulting directly from common law or statutory larceny, misplacement, mysterious unexplainable disappearance, damage or destruction, while the PROPERTY is in transit anywhere: a. in an armored motor vehicle, including loading and unloading thereof, b. in the custody of a natural person acting as a messenger of the ASSURED, or c. in the custody of a TRANSPORTATION COMPANy and being transported in a conveyance other than an armored motor vehicle provided, however, that covered PROPERTY transported in such manner is limited to the following: (1) written records, (2) securities issued in registered form, which are not endorsed or are restrictively endorsed, or (3) negotiable instruments not payable to bearer, which are not endorsed or are restrictively endorsed. Coverage under this INSURING CLAUSE begins immediately on the receipt of such PROPERTY by the natural person or TRANSPORTATION COMPANY and ends immediately on delivery to the premises of the addressee or to any representative of the addressee located anywhere. ________________________________________________________________________________ ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 1 of 19 ________________________________________________________________________________ INSURING CLAUSES (continued) Forgery Or Alteration 4. Loss resulting directly from: a. FORGERY on, or fraudulent material alteration of, any bills of exchange, checks, drafts, acceptances, certificates of deposits, promissory notes, due bills, money orders, orders upon public treasuries, letters of credit, other written promises, orders or directions to pay sums certain in money, or receipts for the withdrawal of PROPERTY, or b. transferring, paying or delivering any funds or other PROPERTY, or establishing any credit or giving any value in reliance on any written instructions, advices or applications directed to the ASSURED authorizing or acknowledging the transfer, payment, delivery or receipt of funds or other PROPERTY, which instructions, advices or applications fraudulently purport to bear the handwritten signature of any customer of the ASSURED, or shareholder or subscriber to shares of an INVESTMENT COMPANY, or of any financial institution or EMPLOYEE but which instructions, advices or applications either bear a FORGERY or have been fraudulently materially altered without the knowledge and consent of such customer, shareholder, subscriber, financial institution or EMPLOYEE; excluding, however, under this INSURING CLAUSE any loss covered under INSURING CLAUSE 5. of this Bond, whether or not coverage for INSURING CLAUSE 5. is provided for in the DECLARATIONS of this Bond. For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile signature is treated the same as a handwritten signature. ________________________________________________________________________________ Extended Forgery 5. Loss resulting directly from the ASSURED having, in good faith, and in the ordinary course of business, for its own account or the account of others in any capacity: a. acquired, accepted or received, accepted or received, sold or delivered, or given value, extended credit or assumed liability, in reliance on any original SECURITIES, DOCUMENTS OR OTHER WRITTEN INSTRUMENTS which prove to: (1) bear a FORGERY or a fraudulently material alteration, (2) have been lost or stolen, or (3) be COUNTERFEIT, or b. guaranteed in writing or witnessed any signatures on any transfer, assignment, bill of sale, power of attorney, guarantee, endorsement or other obligation upon or in connection with any SECURITIES, DOCUMENTS OR OTHER WRITTEN INSTRUMENTS. Actual physical possession, and continued actual physical possession if taken as collateral, of such SECURITIES, DOCUMENTS OR OTHER WRITTEN INSTRUMENTS by an EMPLOYEE, CUSTODIAN, or a Federal or State chartered deposit institution of the ASSURED is a condition precedent to the ASSURED having relied on such items. Release or return of such collateral is an acknowledgment by the ASSURED that it no longer relies on such collateral. ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 2 of 19 ________________________________________________________________________________ INSURING CLAUSES Extended Forgery (continued) For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile signature is treated the same as a handwritten signature. ________________________________________________________________________________ Counterfeit Money 6. Loss resulting directly from the receipt by the ASSURED in good faith of any COUNTERFEIT money. ________________________________________________________________________________ Threats To Person 7. Loss resulting directly from surrender of PROPERTY away from an office of the ASSURED as a result of a threat communicated to the ASSURED to do bodily harm to an EMPLOYEE as defined in Section 1.e. (1), (2) and (5), a RELATIVE or invitee of such EMPLOYEE, or a resident of the household of such EMPLOYEE, who is, or allegedly is, being held captive provided, however, that prior to the surrender of such PROPERTY: a. the EMPLOYEE who receives the threat has made a reasonable effort to notify an officer of the ASSURED who is not involved in such threat, and b. the ASSURED has made a reasonable effort to notify the Federal Bureau of Investigation and local law enforcement authorities concerning such threat. It is agreed that for purposes of this INSURING CLAUSE, any EMPLOYEE of the ASSURED, as set forth in the preceding paragraph, shall be deemed to be an ASSURED hereunder, but only with respect to the surrender of money, securities and other tangible personal property in which such EMPLOYEE has a legal or equitable interest. ________________________________________________________________________________ Computer System 8. Loss resulting directly from fraudulent: a. entries of data into, or b. changes of data elements or programs within, a COMPUTER SYSTEM, provided the fraudulent entry or change causes: (1) funds or other property to be transferred, paid or delivered, (2) an account of the ASSURED or of its customer to be added, deleted, debited or credited, or (3) an unauthorized account or a fictitious account to be debited or credited. ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 3 of 19 ________________________________________________________________________________ INSURING CLAUSES (continued) Voice Initiated Funds Transfer Instruction 9. Loss resulting directly from VOICE INITIATED FUNDS TRANSFER INSTRUCTION directed to the ASSURED authorizing the transfer of dividends or redemption proceeds of INVESTMENT COMPANY shares from a CUSTOMER'S account, provided such VOICE INITIATED FUNDS TRANSFER INSTRUCTION was: a. received at the ASSURED'S offices by those EMPLOYEES of the ASSURED specifically authorized to receive the VOICE INITIATED FUNDS TRANSFER INSTRUCTION, b. made by a person purporting to be a CUSTOMER, and c. made by said person for the purpose of causing the ASSURED or CUSTOMER to sustain a loss or making an improper personal financial gain for such person or any other person. In order for coverage to apply under this INSURING CLAUSE, all VOICE INITIATED FUNDS TRANSFER INSTRUCTIONS must be received and processed in accordance with the Designated Procedures outlined in the APPLICATION furnished to the COMPANY. ________________________________________________________________________________ Uncollectible Items of Deposit 10. Loss resulting directly from the ASSURED having credited an account of a customer, shareholder or subscriber on the faith of any ITEMS OF DEPOSIT which prove to be uncollectible, provided that the crediting of such account causes: a. redemptions or withdrawals to be permitted, b. shares to be issued, or c. dividends to be paid, from an account of an INVESTMENT COMPANY. In order for coverage to apply under this INSURING CLAUSE, the ASSURED must hold ITEMS OF DEPOSIT for the minimum number of days stated in the APPLICATION before permitting any redemptions or withdrawals, issuing any shares or paying any dividends with respect to such ITEMS OF DEPOSIT. ITEMS OF DEPOSIT shall not be deemed uncollectible until the ASSURED'S standard collection procedures have failed. ________________________________________________________________________________ Audit Expense 11. Expense incurred by the ASSURED for that part of the cost of audits or examinations required by any governmental regulatory authority or self-regulatory organization to be conducted by such authority, organization or their appointee by reason of the discovery of loss sustained by the ASSURED and covered by this Bond. ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 4 of 19 ________________________________________________________________________________ GENERAL AGREEMENTS Additional Companies Included As Assured A. If more than one corporation, or INVESTMENT COMPANY, or any combination of them is included as the ASSURED herein: (1) The total liability of the COMPANY under this Bond for loss or losses sustained by any one or more or all of them shall not exceed the limit for which the COMPANY would be liable under this Bond if all such loss were sustained by any one of them. (2) Only the first named ASSURED shall be deemed to be the sole agent of the others for all purposes under this Bond, including but not limited to the giving or receiving of any notice or proof required to be given and for the purpose of effecting or accepting any amendments to or termination of this Bond. The COMPANY shall furnish each INVESTMENT COMPANY with a copy of the Bond and with any amendment thereto, together with a copy of each formal filing of claim by any other named ASSURED and notification of the terms of the settlement of each such claim prior to the execution of such settlement. (3) The COMPANY shall not be responsible for the proper application of any payment made hereunder to the first named ASSURED. (4) Knowledge possessed or discovery made by any partner, director, trustee, officer or supervisory employee of any ASSURED shall constitute knowledge or discovery by all the ASSUREDS for the purposes of this Bond. (5) If the first named ASSURED ceases for any reason to be covered under this Bond, then the ASSURED next named on the APPLICATION shall thereafter be considered as the first named ASSURED for the purposes of this Bond. ________________________________________________________________________________ Representation Made By Assured B. The ASSURED represents that all information it has furnished in the APPLICATION for this Bond or otherwise is complete, true and correct. Such APPLICATION and other information constitute part of this Bond. The ASSURED must promptly notify the COMPANY of any change in any fact or circumstance which materially affects the risk assumed by the COMPANY under this Bond. Any intentional misrepresentation, omission, concealment or incorrect statement of a material fact, in the APPLICATION or otherwise, shall be grounds for recision of this Bond. ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 5 of 19 ________________________________________________________________________________ GENERAL AGREEMENTS (continued) Additional Offices Or Employees - Consolidation, Merger Or Purchase Or Acquisition Of Assets Or Liabilities - Notice To Company C. If the ASSURED, other than an INVESTMENT COMPANY, while this Bond is in force, merges or consolidates with, or purchases or acquires assets or liabilities of another institution, the ASSURED shall not have the coverage afforded under this Bond for loss which has: (1) occurred or will occur on premises, or (2) been caused or will be caused by an employee, or (3) arisen or will arise out of the assets or liabilities, of such institution, unless the ASSURED: a. gives the COMPANY written notice of the proposed consolidation, merger or purchase or acquisition of assets or liabilities prior to the proposed effective date of such action, and b. obtains the written consent of the COMPANY to extend some or all of the coverage provided by this Bond to such additional exposure, and c. on obtaining such consent, pays to the COMPANY an additional premium. ________________________________________________________________________________ Change Of Control - Notice To Company D. When the ASSURED learns of a change in control (other than in an INVESTMENT COMPANY), as set forth in Section 2(a) (9) of the Investment Company Act of 1940, the ASSURED shall within sixty (60) days give written notice to the COMPANY setting forth: (1) the names of the transferors and transferees (or the names of the beneficial owners if the voting securities are registered in another name), (2) the total number of voting securities owned by the transferors and the transferees (or the beneficial owners), both immediately before and after the transfer, and (3) the total number of outstanding voting securities. Failure to give the required notice shall result in termination of coverage for any loss involving a transferee, to be effective on the date of such change in control. ________________________________________________________________________________ Court Costs And Attorneys' Fees E. The COMPANY will indemnify the ASSURED for court costs and reasonable attorneys' fees incurred and paid by the ASSURED in defense, whether or not successful, whether or not fully litigated on the merits and whether or not settled, of any claim, suit or legal proceeding with respect to which the ASSURED would be entitled to recovery under this Bond. However, with respect to INSURING CLAUSE 1., this Section shall only apply in the event that: (1) an EMPLOYEE admits to being guilty of LARCENY or EMBEZZLEMENT, (2) an EMPLOYEE is adjudicated to be guilty of LARCENY or EMBEZZLEMENT, or ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 6 of 19 ________________________________________________________________________________ GENERAL AGREEMENTS Court Costs And Attorneys' Fees (continued) (3) in the absence of 1 or 2 above, an arbitration panel agrees, after a review of an agreed statement of facts between the COMPANY and the ASSURED, that an EMPLOYEE would be found guilty of LARCENY or EMBEZZLEMENT if such EMPLOYEE were prosecuted. The ASSURED shall promptly give notice to the COMPANY of any such suit or legal proceeding and at the request of the COMPANY shall furnish copies of all pleadings and pertinent papers to the COMPANY. The COMPANY may, at its sole option, elect to conduct the defense of all or part of such legal proceeding. The defense by the COMPANY shall be in the name of the ASSURED through attorneys selected by the COMPANY. The ASSURED shall provide all reasonable information and assistance as required by the COMPANY for such defense. If the COMPANY declines to defend the ASSURED, no settlement without the prior written consent of the COMPANY nor judgment against the ASSURED shall determine the existence, extent or amount of coverage under this Bond. If the amount demanded in any such suit or legal proceeding is within the DEDUCTIBLE AMOUNT, if any, the COMPANY shall have no liability for court costs and attorney's fees incurred in defending all or part of such suit or legal proceeding. If the amount demanded in any such suit or legal proceeding is in excess of the LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable INSURING CLAUSE, the COMPANY'S liability for court costs and attorney's fees incurred in defending all or part of such suit or legal proceedings is limited to the proportion of such court costs and attorney's fees incurred that the LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable INSURING CLAUSE bears to the total of the amount demanded in such suit or legal proceeding. If the amount demanded is any such suit or legal proceeding is in excess of the DEDUCTIBLE AMOUNT, if any, but within the LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable INSURING CLAUSE, the COMPANY'S liability for court costs and attorney's fees incurred in defending all or part of such suit or legal proceedings shall be limited to the proportion of such court costs or attorney's fees that the amount demanded that would be payable under this Bond after application of the DEDUCTIBLE AMOUNT, bears to the total amount demanded. Amounts paid by the COMPANY for court costs and attorneys' fees shall be in addition to the LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS. ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 7 of 19 ________________________________________________________________________________ CONDITIONS AND LIMITATIONS Definitions 1. As used in this Bond: a. COMPUTER SYSTEM means a computer and all input, output, processing, storage, off-line media libraries, and communication facilities which are connected to the computer and which are under the control and supervision of the operating system(s) or application(s) software used by the ASSURED. b. COUNTERFEIT means an imitation of an actual valid original which is intended to deceive and be taken as the original. c. CUSTODIAN means the institution designated by an INVESTMENT COMPANY to maintain possession and control of its assets. d. CUSTOMER means an individual, corporate, partnership, trust customer, shareholder or subscriber of an INVESTMENT COMPANY which has a written agreement with the ASSURED for VOICE INITIATED FUNDS TRANSFER INSTRUCTION. e. EMPLOYEE means: (1) an officer of the ASSURED, (2) a natural person while in the regular service of the ASSURED at any of the ASSURED'S premises and compensated directly by the ASSURED through its payroll system and subject to the United States Internal Revenue Service Form W-2 or equivalent income reporting plans of other countries, and whom the ASSURED has the right to control and direct both as to the result to be accomplished and details and means by which such result is accomplished in the performance of such service, (3) a guest student pursuing studies or performing duties in any of the ASSURED'S premises, (4) an attorney retained by the ASSURED and an employee of such attorney while either is performing legal services for the ASSURED, (5) a natural person provided by an employment contractor to perform employee duties for the ASSURED under the ASSURED'S supervision at any of the ASSURED'S premises, (6) an employee of an institution merged or consolidated with the ASSURED prior to the effective date of this Bond, (7) a director or trustee of the ASSURED, but only while performing acts within the scope of the customary and usual duties of any officer or other employee of the ASSURED or while acting as a member of any committee duly elected or appointed to examine or audit or have custody of or access to PROPERTY of the ASSURED, or ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 8 of 19 ________________________________________________________________________________ CONDITIONS AND LIMITATIONS Definitions (continued) (8) each natural person, partnership or corporation authorized by written agreement with the ASSURED to perform services as electronic data processor of checks or other accounting records related to such checks but only while such person, partnership or corporation is actually performing such services and not: a. creating, preparing, modifying or maintaining the ASSURED'S computer software or programs, or b. acting as transfer agent or in any other agency capacity in issuing checks, drafts or securities for the ASSURED, (9) any partner, officer or employee of an investment advisor, an underwriter (distributor), a transfer agent or shareholder accounting recordkeeper, or an administrator, for an INVESTMENT COMPANY while performing acts coming within the scope of the customary and usual duties of an officer or employee of an INVESTMENT COMPANY or acting as a member of any committee duly elected or appointed to examine, audit or have custody of or access to PROPERTY of an INVESTMENT COMPANY. The term EMPLOYEE shall not include any partner, officer or employee of a transfer agent, shareholder accounting recordkeeper or administrator: a. which is not an "affiliated person" (as defined in Section 2(a) of the Investment Company Act of 1940) of an INVESTMENT COMPANY or of the investment advisor or underwriter (distributor) of such INVESTMENT COMPANY, or b. which is a "bank" (as defined in Section 2(a) of the Investment Company Act of 1940). This Bond does not afford coverage in favor of the employers of persons as set forth in e. (4), (5) and (8) above, and upon payment to the ASSURED by the COMPANY resulting directly from LARCENY or EMBEZZLEMENT committed by any of the partners, officers or employees of such employers, whether acting alone or in collusion with others, an assignment of such of the ASSURED'S rights and causes of action as it may have against such employers by reason of such acts so committed shall, to the extent of such payment, be given by the ASSURED to the COMPANY, and the ASSURED shall execute all papers necessary to secure to the COMPANY the rights provided for herein. Each employer of persons as set forth in e.(4), (5) and (8) above and the partners, officers and other employees of such employers shall collectively be deemed to be one person for all the purposes of this Bond; excepting, however, the fifth paragraph of Section 13. Independent contractors not specified in e.(4), (5) or (8) above, intermediaries, agents, brokers or other representatives of the same general character shall not be considered Employees. ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 9 of 19 ________________________________________________________________________________ CONDITIONS AND LIMITATIONS Definitions (continued) f. FORGERY means the signing of the name of another natural person with the intent to deceive but does not mean a signature which consists in whole or in part of one's own name, with or without authority, in any capacity for any purpose. g. INVESTMENT COMPANY means any investment company registered under the Investment Company Act of 1940 and listed under the NAME OF ASSURED on the DECLARATIONS. h. ITEMS OF DEPOSIT means one or more checks or drafts drawn upon a financial institution in the United States of America. i. LARCENY or EMBEZZLEMENT means larceny or embezzlement as defined in Section 37 of the Investment Company Act of 1940. j. PROPERTY means money, revenue and other stamps; securities; including any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of deposit, certificate of interest or participation in any profitsharing agreement, collateral trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any interest or instruments commonly known as a security under the Investment Company Act of 1940, any other certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the foregoing; bills of exchange; acceptances; checks; withdrawal orders; money orders; travelers' letters of credit; bills of lading; abstracts of title; insurance policies, deeds, mortgages on real estate and/or upon chattels and interests therein; assignments of such policies, deeds or mortgages; other valuable papers, including books of accounts and other records used by the ASSURED in the conduct of its business (but excluding all electronic data processing records); and, all other instruments similar to or in the nature of the foregoing in which the ASSURED acquired an interest at the time of the ASSURED'S consolidation or merger with, or purchase of the principal assets of, a predecessor or which are held by the ASSURED for any purpose or in any capacity and whether so held gratuitously or not and whether or not the ASSURED is liable therefor. k. RELATIVE means the spouse of an Employee or partner of the ASSURED and any unmarried child supported wholly by, or living in the home of, such Employee or partner and being related to them by blood, marriage or legal guardianship. l. SECURITIES, DOCUMENTS OR OTHER WRITTEN INSTRUMENTS means original (including original counterparts) negotiable or non-negotiable instruments, or assignments thereof, which in and of themselves represent an equitable interest, ownership, or debt and which are in the ordinary course of business transferable by delivery of such instruments with any necessary endorsements or assignments. ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 10 of 19 ________________________________________________________________________________ CONDITIONS AND LIMITATIONS Definitions (continued) m. SUBSIDIARY means any organization that, at the inception date of this Bond, is named in the APPLICATION or is created during the BOND PERIOD and of which more than fifty percent (50%) of the outstanding securities or voting rights representing the present right to vote for election of directors is owned or controlled by the ASSURED either directly or through one or more of its subsidiaries. n. TRANSPORTATION COMPANY means any organization which provides its own or its leased vehicles for transportation or which provides freight forwarding or air express services. o. VOICE INITIATED ELECTION means any election concerning dividend options available to INVESTMENT COMPANY shareholders or subscribers which is requested by voice over the telephone. p. VOICE INITIATED REDEMPTION means any redemption of shares issued by an INVESTMENT COMPANY which is requested by voice over the telephone. q. VOICE INITIATED FUNDS TRANSFER INSTRUCTION means any VOICE INITIATED REDEMPTION or VOICE INITIATED ELECTION. For the purposes of these definitions, the singular includes the plural and the plural includes the singular, unless otherwise indicated. ________________________________________________________________________________ General Exclusions - Applicable to All Insuring Clauses 2. THIS BOND DOES NOT DIRECTLY OR INDIRECTLY COVER: a. loss not reported to the COMPANY in writing within sixty (60) days after termination of this Bond as an entirety; b. loss due to riot or civil commotion outside the United States of America and Canada, or any loss due to military, naval or usurped power, war or insurrection. This Section 2.b., however, shall not apply to loss which occurs in transit in the circumstances recited in INSURING CLAUSE 3., provided that when such transit was initiated there was no knowledge on the part of any person acting for the ASSURED of such riot, civil commotion, military, naval or usurped power, war or insurrection; c. loss resulting from the effects of nuclear fission or fusion or radioactivity; d. loss of potential income including, but not limited to, interest and dividends not realized by the ASSURED or by any customer of the ASSURED; e. damages of any type for which the ASSURED is legally liable, except compensatory damages, but not multiples thereof, arising from a loss covered under this Bond; f. costs, fees and expenses incurred by the ASSURED in establishing the existence of or amount of loss under this Bond, except to the extent covered under INSURING CLAUSE 11.; g. loss resulting from indirect or consequential loss of any nature; ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 11 of 19 ________________________________________________________________________________ CONDITIONS AND LIMITATIONS General Exclusions - Applicable to All Insuring Clauses (continued) h. loss resulting from dishonest acts by any member of the Board of Directors or Board of Trustees of the ASSURED who is not an EMPLOYEE, acting alone or in collusion with others; i. loss, or that part of any loss, resulting solely from any violation by the ASSURED or by any EMPLOYEE: (1) of any law regulating: a. the issuance, purchase or sale of securities, b. securities transactions on security or commodity exchanges or the over the counter market, c. investment companies, d. investment advisors, or (2) of any rule or regulation made pursuant to any such law; or j. loss of confidential information, material or data; k. loss resulting from voice requests or instructions received over the telephone, provided however, this Section 2.k. shall not apply to INSURING CLAUSE 7. or 9. ________________________________________________________________________________ Specific Exclusions - Applicable To All Insuring Clauses Except Insuring Clause 1. 3. THIS BOND DOES NOT DIRECTLY OR INDIRECTLY COVER: a. loss caused by an EMPLOYEE, provided, however, this Section 3.a. shall not apply to loss covered under INSURING CLAUSE 2. or 3. which results directly from misplacement, mysterious unexplainable disappearance, or damage or destruction of PROPERTY; b. loss through the surrender of property away from premises of the ASSURED as a result of a threat: (1) to do bodily harm to any natural person, except loss of PROPERTY in transit in the custody of any person acting as messenger of the ASSURED, provided that when such transit was initiated there was no knowledge by the ASSURED of any such threat, and provided further that this Section 3.b. shall not apply to INSURING CLAUSE 7., or (2) to do damage to the premises or PROPERTY of the ASSURED; c. loss resulting from payments made or withdrawals from any account involving erroneous credits to such account; d. loss involving ITEMS OF DEPOSIT which are not finally paid for any reason provided however, that this Section 3.d. shall not apply to INSURING CLAUSE 10.; e. loss of property while in the mail; ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 12 of 19 ________________________________________________________________________________ CONDITIONS AND LIMITATIONS Specific Exclusions - Applicable To All Insuring Clauses Except Insuring Clause 1. (continued) f. loss resulting from the failure for any reason of a financial or depository institution, its receiver or other liquidator to pay or deliver funds or other PROPERTY to the ASSURED provided further that this Section 3.f. shall not apply to loss of PROPERTY resulting directly from robbery, burglary, misplacement, mysterious unexplainable disappearance, damage, destruction or removal from the possession, custody or control of the ASSURED. g. loss of PROPERTY while in the custody of a TRANSPORTATION COMPANY, provided however, that this Section 3.g. shall not apply to INSURING CLAUSE 3.; h. loss resulting from entries or changes made by a natural person with authorized access to a COMPUTER SYSTEM who acts in good faith on instructions, unless such instructions are given to that person by a software contractor or its partner, officer, or employee authorized by the ASSURED to design, develop, prepare, supply, service, write or implement programs for the ASSURED's COMPUTER SYSTEM; or i. loss resulting directly or indirectly from the input of data into a COMPUTER SYSTEM terminal, either on the premises of the customer of the ASSURED or under the control of such a customer, by a customer or other person who had authorized access to the customer's authentication mechanism. ________________________________________________________________________________ Specific Exclusions - Applicable To All Insuring Clauses Except Insuring Clauses 1., 4., And 5. 4. THIS BOND DOES NOT DIRECTLY OR INDIRECTLY COVER: a. loss resulting from the complete or partial non-payment of or default on any loan whether such loan was procured in good faith or through trick, artifice, fraud or false pretenses; provided, however, this Section 4.a. shall not apply to INSURING CLAUSE 8.; b. loss resulting from forgery or any alteration; c. loss involving a counterfeit provided, however, this Section 4.c. shall not apply to INSURING CLAUSE 5. or 6. ________________________________________________________________________________ Limit Of Liability/ Non-Reduction And Non-Accumulation Of Liability 5. At all times prior to termination of this Bond, this Bond shall continue in force for the limit stated in the applicable sections of ITEM 2. of the DECLARATIONS, notwithstanding any previous loss for which the COMPANY may have paid or be liable to pay under this Bond provided, however, that the liability of the COMPANY under this Bond with respect to all loss resulting from: a. any one act of burglary, robbery or hold-up, or attempt thereat, in which no Employee is concerned or implicated, or b. any one unintentional or negligent act on the part of any one person resulting in damage to or destruction or misplacement of Property, or c. all acts, other than those specified in a. above, of any one person, or ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 13 of 19 ________________________________________________________________________________ CONDITIONS AND LIMITATIONS Limit Of Liability/ Non-Reduction And Non-Accumulation Of Liability (continued) d. any one casualty or event other than those specified in a., b., or c. above, shall be deemed to be one loss and shall be limited to the applicable LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS of this Bond irrespective of the total amount of such loss or losses and shall not be cumulative in amounts from year to year or from period to period. All acts, as specified in c. above, of any one person which i. directly or indirectly aid in any way wrongful acts of any other person or persons, or ii. permit the continuation of wrongful acts of any other person or persons whether such acts are committed with or without the knowledge of the wrongful acts of the person so aided, and whether such acts are committed with or without the intent to aid such other person, shall be deemed to be one loss with the wrongful acts of all persons so aided. ________________________________________________________________________________ Discovery 6. This Bond applies only to loss first discovered by an officer of the ASSURED during the BOND PERIOD. Discovery occurs at the earlier of an officer of the ASSURED being aware of: a. facts which may subsequently result in a loss of a type covered by this Bond, or b. an actual or potential claim in which it is alleged that the ASSURED is liable to a third party, regardless of when the act or acts causing or contributing to such loss occurred, even though the amount of loss does not exceed the applicable DEDUCTIBLE AMOUNT, or the exact amount or details of loss may not then be known. ________________________________________________________________________________ Notice To Company - Proof - Legal Proceedings Against Company 7. a. The ASSURED shall give the COMPANY notice thereof at the earliest practicable moment, not to exceed sixty (60) days after discovery of loss, in an amount that is in excess of 50% of the applicable DEDUCTIBLE AMOUNT, as stated in ITEM 2. of the DECLARATIONS. b. The ASSURED shall furnish to the COMPANY proof of loss, duly sworn to, with full particulars within six (6) months after such discovery. c. Securities listed in a proof of loss shall be identified by certificate or bond numbers, if issued with them. d. Legal proceedings for the recovery of any loss under this Bond shall not be brought prior to the expiration of sixty (60) days after the proof of loss is filed with the COMPANY or after the expiration of twenty-four (24) months from the discovery of such loss. e. This Bond affords coverage only in favor of the ASSURED. No claim, suit, action or legal proceedings shall be brought under this Bond by anyone other than the ASSURED. ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 14 of 19 ________________________________________________________________________________ CONDITIONS AND LIMITATIONS Notice To Company - Proof - Legal Proceedings Against Company (continued) f. Proof of loss involving VOICE INITIATED FUNDS TRANSFER INSTRUCTION shall include electronic recordings of such instructions. ________________________________________________________________________________ Deductible Amount 8. The COMPANY shall not be liable under any INSURING CLAUSES of this Bond on account of loss unless the amount of such loss, after deducting the net amount of all reimbursement and/or recovery obtained or made by the ASSURED, other than from any Bond or policy of insurance issued by an insurance company and covering such loss, or by the COMPANY on account thereof prior to payment by the COMPANY of such loss, shall exceed the DEDUCTIBLE AMOUNT set forth in ITEM 3. of the DECLARATIONS, and then for such excess only, but in no event for more than the applicable LIMITS OF LIABILITY stated in ITEM 2. of the DECLARATIONS. There shall be no deductible applicable to any loss under INSURING CLAUSE 1. sustained by any INVESTMENT COMPANY. ________________________________________________________________________________ Valuation 9. BOOKS OF ACCOUNT OR OTHER RECORDS The value of any loss of PROPERTY consisting of books of account or other records used by the ASSURED in the conduct of its business shall be the amount paid by the ASSURED for blank books, blank pages, or other materials which replace the lost books of account or other records, plus the cost of labor paid by the ASSURED for the actual transcription or copying of data to reproduce such books of account or other records. The value of any loss of PROPERTY other than books of account or other records used by the ASSURED in the conduct of its business, for which a claim is made shall be determined by the average market value of such PROPERTY on the business day immediately preceding discovery of such loss provided, however, that the value of any PROPERTY replaced by the ASSURED with the consent of the COMPANY and prior to the settlement of any claim for such PROPERTY shall be the actual market value at the time of replacement. In the case of a loss of interim certificates, warrants, rights or other securities, the production of which is necessary to the exercise of subscription, conversion, redemption or deposit privileges, the value of them shall be the market value of such privileges immediately preceding their expiration if said loss is not discovered until after their expiration. If no market price is quoted for such PROPERTY or for such privileges, the value shall be fixed by agreement between the parties. OTHER PROPERTY The value of any loss of PROPERTY, other than as stated above, shall be the actual cash value or the cost of repairing or replacing such PROPERTY with PROPERTY of like quality and value, whichever is less. ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 15 of 19 ________________________________________________________________________________ CONDITIONS AND LIMITATIONS (continued) Securities Settlement 10. In the event of a loss of securities covered under this Bond, the COMPANY may, at its sole discretion, purchase replacement securities, tender the value of the securities in money, or issue its indemnity to effect replacement securities. The indemnity required from the ASSURED under the terms of this Section against all loss, cost or expense arising from the replacement of securities by the COMPANY'S indemnity shall be: a. for securities having a value less than or equal to the applicable DEDUCTIBLE AMOUNT - one hundred (100%) percent; b. for securities having a value in excess of the DEDUCTIBLE AMOUNT but within the applicable LIMIT OF LIABILITY - the percentage that the DEDUCTIBLE AMOUNT bears to the value of the securities; c. for securities having a value greater than the applicable LIMIT OF LIABILITY - the percentage that the DEDUCTIBLE AMOUNT and portion in excess of the applicable LIMIT OF LIABILITY bears to the value of the securities. The value referred to in Section 10.a., b., and c. is the value in accordance with Section 9, VALUATION, regardless of the value of such securities at the time the loss under the COMPANY'S indemnity is sustained. The COMPANY is not required to issue its indemnity for any portion of a loss of securities which is not covered by this Bond; however, the COMPANY may do so as a courtesy to the ASSURED and at its sole discretion. The ASSURED shall pay the proportion of the Company's premium charge for the Company's indemnity as set forth in Section 10.a., b., and c. No portion of the LIMIT OF LIABILITY shall be used as payment of premium for any indemnity purchased by the ASSURED to obtain replacement securities. ________________________________________________________________________________ Subrogation - Assignment - Recovery 11. In the event of a payment under this Bond, the COMPANY shall be subrogated to all of the ASSURED'S rights of recovery against any person or entity to the extent of such payment. On request, the ASSURED shall deliver to the COMPANY an assignment of the ASSURED'S rights, title and interest and causes of action against any person or entity to the extent of such payment. Recoveries, whether effected by the COMPANY or by the ASSURED, shall be applied net of the expense of such recovery in the following order: a. first, to the satisfaction of the ASSURED'S loss which would otherwise have been paid but for the fact that it is in excess of the applicable LIMIT OF LIABILITY, b. second, to the COMPANY in satisfaction of amounts paid in settlement of the ASSURED'S claim, c. third, to the ASSURED in satisfaction of the applicable DEDUCTIBLE AMOUNT, and ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 16 of 19 ________________________________________________________________________________ CONDITIONS AND LIMITATIONS Subrogation - Assignment - Recovery (continued) d. fourth, to the ASSURED in satisfaction of any loss suffered by the ASSURED which was not covered under this Bond. Recovery from reinsurance or indemnity of the COMPANY shall not be deemed a recovery under this section. ________________________________________________________________________________ Cooperation Of Assured 12. At the COMPANY'S request and at reasonable times and places designated by the COMPANY, the ASSURED shall: a. submit to examination by the COMPANY and subscribe to the same under oath, b. produce for the COMPANY'S examination all pertinent records, and c. cooperate with the COMPANY in all matters pertaining to the loss. The ASSURED shall execute all papers and render assistance to secure to the COMPANY the rights and causes of action provided for under this Bond. The ASSURED shall do nothing after loss to prejudice such rights or causes of action. ________________________________________________________________________________ Termination 13. If the Bond is for a sole ASSURED, it shall not be terminated unless written notice shall have been given by the acting party to the affected party and to the Securities and Exchange Commission, Washington, D.C., not less than sixty (60) days prior to the effective date of such termination. If the Bond is for a joint ASSURED, it shall not be terminated unless written notice shall have been given by the acting party to the affected party, and by the COMPANY to all ASSURED INVESTMENT COMPANIES and to the Securities and Exchange Commission, Washington, D.C., not less than sixty (60) days prior to the effective date of such termination. This Bond will terminate as to any one ASSURED, other than an INVESTMENT COMPANY: a. immediately on the taking over of such ASSURED by a receiver or other liquidator or by State or Federal officials, or b. immediately on the filing of a petition under any State or Federal statute relative to bankruptcy or reorganization of the ASSURED, or assignment for the benefit of creditors of the ASSURED, or c. immediately upon such ASSURED ceasing to exist, whether through merger into another entity, disposition of all of its assets or otherwise. The COMPANY shall refund the unearned premium computed at short rates in accordance with the standard short rate cancellation tables if terminated by the ASSURED or pro rata if terminated for any other reason. ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 17 of 19 ________________________________________________________________________________ CONDITIONS AND LIMITATIONS Termination (continued) If any partner, director, trustee, or officer or supervisory employee of an ASSURED not acting in collusion with an EMPLOYEE learns of any dishonest act committed by such EMPLOYEE at any time, whether in the employment of the ASSURED or otherwise, whether or not such act is of the type covered under this Bond, and whether against the ASSURED or any other person or entity, the ASSURED: a. shall immediately remove such EMPLOYEE from a position that would enable such EMPLOYEE to cause the ASSURED to suffer a loss covered by this Bond; and b. within forty-eight (48) hours of learning that an EMPLOYEE has committed any dishonest act, shall notify the COMPANY, of such action and provide full particulars of such dishonest act. The COMPANY may terminate coverage as respects any EMPLOYEE sixty (60) days after written notice is received by each ASSURED INVESTMENT COMPANY and the Securities and Exchange Commission, Washington, D.C. of its desire to terminate this Bond as to such EMPLOYEE. ________________________________________________________________________________ Other Insurance 14. Coverage under this Bond shall apply only as excess over any valid and collectible insurance, indemnity or suretyship obtained by or on behalf of: a. the ASSURED, b. a TRANSPORTATION COMPANY, or c. another entity on whose premises the loss occurred or which employed the person causing the loss or engaged the messenger conveying the PROPERTY involved. ________________________________________________________________________________ Conformity 15. If any limitation within this Bond is prohibited by any law controlling this Bond's construction, such limitation shall be deemed to be amended so as to equal the minimum period of limitation provided by such law. ________________________________________________________________________________ Change or Modification 16. This Bond or any instrument amending or affecting this Bond may not be changed or modified orally. No change in or modification of this Bond shall be effective except when made by written endorsement to this Bond signed by an authorized representative of the COMPANY. If this Bond is for a sole ASSURED, no change or modification which would adversely affect the rights of the ASSURED shall be effective prior to sixty (60) days after written notice has been furnished to the Securities and Exchange Commission, Washington, D.C., by the acting party. ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 18 of 19 ________________________________________________________________________________ CONDITIONS AND LIMITATIONS Change or Modification (continued) If this Bond is for a joint ASSURED, no charge or modification which would adversely affect the rights of the ASSURED shall be effective prior to sixty (60) days after written notice has been furnished to all insured INVESTMENT COMPANIES and to the Securities and Exchange Commission, Washington, D.C., by the COMPANY. ________________________________________________________________________________ ICAP Bond (5-98) Form 17-02-1421 (Ed. 5-98) Page 19 of 19 CHUBB [GRAPHIC OMITTED] ________________________________________________________________________________ FEDERAL INSURANCE COMPANY Endorsement No: 1 Bond Number: 81906399 NAME OF ASSURED FIRST TRUST ADVISORS, LP ETAL ________________________________________________________________________________ PREMIUM ENDORSEMENT It is agreed that: 1. The premium for this Bond for the period October 9, 2005 to October 9, 2006 is: Premium: Fifty-Seven Thousand Dollars ($57,000) 2. It is further agreed that this premium is subject to change during this period if amendments are made to this Bond at the request of the ASSURED. This Endorsement applies to loss discovered after 12:01 a.m. on October 9, 2005. ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED. Date: January 17, 2006 By /s/ Robert Hamburger ____________________________ Authorized Representative ICAP Bond Form 17-02-0735 (Rev. 1-97 CHUBB [GRAPHIC OMITTED] ________________________________________________________________________________ FEDERAL INSURANCE COMPANY Endorsement No: 2 Bond Number: 81906399 NAME OF ASSURED FIRST TRUST ADVISORS, LP ETAL ________________________________________________________________________________ NAME OF ASSURED ENDORSEMENT It is agreed that the NAME OF ASSURED in the DECLARATIONS is amended to read as follows: FIRST DEFINED PORTFOLIO FUND, LLC First Trust Energy Portfolio First Trust Financial Services Portfolio First Trust Pharmaceutical Portfolio First Trust Technology Portfolio The Dow(sm) DART 10 Portfolio Global Dividend Target 15 Portfolio S&P Target 24 Portfolio NASDAQ Target 15 Portfolio Value Line Target 25 Portfolio First Trust 10 Uncommon Values Portfolio The Dow(sm) Target Dividend Portfolio Target Managed VIP Portfolio FIRST TRUST/FIDUCIARY ASSET MANAGEMENT COVERED CALL FUND FIRST TRUST VALUE LINE 100 FUND FIRST TRUST VALUE LINE DIVIDEND FUND FIRST TRUST/VALUE LINE & IBBOTSON EQUITY ALLOCATION FUND FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II ENERGY INCOME AND GROWTH FUND MACQUAIRE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND FIRST TRUST FIDAC MORTGAGE INCOME FUND FIRST TRUST STRATEGIC HIGH INCOME FUND FIRST TRUST EXCHANGE-TRADED FUND First Trust Dow Jones Select MicroCap Index Fund This Endorsement applies to loss discovered after 12:01 a.m. on October 9, 2005. ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED. Date: January 17, 2006 By /s/ Robert Hamburger ____________________________ Authorized Representative ICAP Bond Form 17-02-0949 (Rev. 1-97) Page 1 CHUBB [GRAPHIC OMITTED] ________________________________________________________________________________ FEDERAL INSURANCE COMPANY Endorsement No: 3 Bond Number: 81906399 NAME OF ASSURED FIRST TRUST ADVISORS, LP ETAL ________________________________________________________________________________ DELETING VALUATION-OTHER PROPERTY ENDORSEMENT It is agreed that this Bond is amended by deleting in its entirety the paragraph titled Other Property in Section 9., Valuation. This Endorsement applies to loss discovered after 12:01 a.m. on October 9, 2005. ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED. Date: January 17, 2006 By /s/ Robert Hamburger ____________________________ Authorized Representative ICAP Bond Form 17-02-2437 (Ed. 1-01) CHUBB [GRAPHIC OMITTED] ________________________________________________________________________________ Effective date of FEDERAL INSURANCE COMPANY this endorsement: October 9, 2005 Endorsement No: 4 To be attached to and form a part of Bond Number: 81906399 Issued to: FIRST TRUST ADVISORS, LP ETAL ________________________________________________________________________________ COMPLIANCE WITH APPLICABLE TRADE SANCTION LAWS RIDER It is agreed that this insurance does not apply to the extent that trade or economic sanctions or other laws or regulations prohibit the coverage provided by this insurance. ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED. Date: January 17, 2006 By /s/ Robert Hamburger ____________________________ Authorized Representative Form 14-02-9228 (Ed. 4/2004) CHUBB [GRAPHIC OMITTED] ________________________________________________________________________________ IMPORTANT POLICYHOLDER INFORMATION Inquiries concerning your policy should be directed to your insurance agent. The name, address and telephone number of your agent, if one is involved, is shown on the policy and/or in the material accompanying the policy. If you require additional information you may contact the California Insurance Department at either the following address or phone number: California Insurance Department 300 South Spring Street Los Angeles, CA 90012 1-800-927-HELP Form 99-10-0267 (Ed. 2/98) Form 14-02-1495 (Ed. 1/94) CHUBB [GRAPHIC OMITTED] ________________________________________________________________________________ IMPORTANT NOTICE The premium shown on this policy or premium statement may be subject to adjustment in accordance with the provisions of California law recently adopted by ballot initiative. You will be informed about any adjustment as soon as the requirements of the law and their effect on your premium can be determined. Form 99-10-0267 (Ed. 2/98) Chubb & Son, div. of Federal Insurance Company as manager of the member insurers of the CHUBB [GRAPHIC OMITTED] Chubb Group of Insurance Companies ________________________________________________________________________________ POLICYHOLDER DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE (for policies with no terrorism exclusion or sublimit) You are hereby notified that, under the Terrorism Risk Insurance Act of 2002 (the "Act") effective November 26, 2002, this policy makes available to you insurance for losses arising out of certain acts of international terrorism. Terrorism is defined as any act certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property or infrastructure; to have resulted in damage within the United States, or outside the United States in the case of an air carrier or vessel or the premises of a United States Mission; and to have been committed by an individual or individuals acting on behalf of any foreign person or foreign interest, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. You should know that the insurance provided by your policy for losses caused by acts of terrorism is partially reimbursed by the United States under the formula set forth in the Act. Under this formula, the United States pays 90% of covered terrorism losses that exceed the statutorily established deductible to be paid by the insurance company providing the coverage. The portion of your policy's annual premium that is attributable to insurance for such acts of terrorism is: $ -0-. If you have any questions about this notice, please contact your agent or broker. Form 10-02-1281 (Ed. 1/2003) EX-99 3 exhibit4.txt CERTIFICATE OF ASSISTANT SECRETARY CERTIFICATE OF ASSISTANT SECRETARY The undersigned, Kristi A. Maher, Assistant Secretary of First Defined Portfolio Fund, LLC, a Delaware Limited Liability Company, First Trust Value Line(R) 100 Fund, a Massachusetts Business Trust, First Trust Value Line(R) Dividend Fund, a Massachusetts Business Trust, First Trust/Four Corners Senior Floating Rate Income Fund, a Massachusetts Business Trust, Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund, a Massachusetts Business Trust, First Trust/Value Line(R) & Ibbotson Equity Allocation Fund, a Massachusetts Business Trust, First Trust/Four Corners Senior Floating Rate Income Fund II, a Massachusetts Business Trust, Energy Income and Growth Fund, a Massachusetts Business Trust, First Trust/Fiduciary Asset Management Covered Call Fund, a Massachusetts Business Trust, First Trust/Aberdeen Global Opportunity Income Fund, a Massachusetts Business Trust, First Trust/FIDAC Mortgage Income Fund, a Massachusetts Business Trust and First Trust Strategic High Income Fund, a Massachusetts Business Trust, and First Trust Exchange-Traded Fund, a Massachusetts Business Trust (individually, the "Company" and collectively, the "Companies"), does hereby certify that: 1. This certificate is being delivered to the Securities and Exchange Commission (the "SEC") in connection with the filing of the Companies' joint fidelity bond (the "Bond") pursuant to Rule 17g-1 of the Investment Company Act of 1940, as amended, and the SEC is entitled to rely on this certificate for purposes of the filing. 2. The undersigned is duly elected, qualified and acting Assistant Secretary of each Company, and has custody of the corporate records of each Company and is a proper officer to make this certification. 3. Attached hereto as Exhibit A is a copy of the form of resolutions of a majority of the Board of Trustees who are not "interested persons" of each Company approving the amount, type, form and coverage of the Bond and the portion of the premium to be paid by each Company. 4. Attached hereto as Exhibit B is a list of the amount of the single insured bond which each Company would have provided and maintained had it not been named as an insured under the Bond. 5. Premiums have been paid for the period October 9, 2005 to October 9, 2006. IN WITNESS WHEREOF, the undersigned has caused this certificate to be executed this 24th day of March 2006. /s/ Kristi A. Maher --------------------------- Assistant Secretary EXHIBIT A FIRST DEFINED PORTFOLIO FUND, LLC FIRST TRUST VALUE LINE(R) 100 FUND FIRST TRUST VALUE LINE(R) DIVIDEND FUND FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II ENERGY INCOME AND GROWTH FUND FIRST TRUST/FIDUCIARY ASSET MANAGEMENT COVERED CALL FUND FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND FIRST TRUST/FIDAC MORTGAGE INCOME FUND FIRST TRUST STRATEGIC HIGH INCOME FUND FIRST TRUST EXCHANGE-TRADED FUND RESOLUTIONS REGARDING FIDELITY BOND RESOLVED, that the officers of the First Defined Portfolio Fund, LLC, the First Trust Value Line(R) 100 Fund, the First Trust Value Line(R) Dividend Fund, the First Trust/Four Corners Senior Floating Rate Income Fund, the Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund, The First Trust/Value Line(R) & Ibbotson Equity Allocation Fund, the First Trust/Four Corners Senior Floating Rate Income Fund II, the Energy Income and Growth Fund, the First Trust/Fiduciary Asset Management Covered Call Fund, the First Trust/Aberdeen Global Opportunity Income Fund, the First Trust/FIDAC Mortgage Income Fund, the First Trust Strategic High Income Fund, and the First Trust Exchange-Traded Fund (each a "Fund" and collectively the "Funds") be and they hereby are, authorized and directed to make application for and maintain fidelity bond coverage for all the Funds, jointly with such other funds advised by First Trust Advisors, L.P. ("FTA") as they, in their judgment, shall deem advisable and to enter into an agreement with the other insured funds concerning such coverage as required by Rule 17g-1(f) under the Investment Company Act of 1940, such agreement being in substantially the form currently in place; and it is further RESOLVED, that fidelity bond coverage insuring the funds in the amount required by Rule 17g-1 of the Investment Company Act of 1940, or such greater amounts as officers of the Funds may from time to time determine in accordance with the provisions of Rule 17g-1 of the Investment Company Act of 1940, is hereby deemed to be reasonable in form and amount as required by and considering all relevant factors as provided in Rule 17g-1 and is hereby approved; and it is further RESOLVED, that the Funds' participation with other management investment companies advised by FTA in the purchase and maintenance of new Chubb fidelity bond coverage as required by rule 17g-1 under the Investment Company Act of 1940, and the payment by the Funds of that portion of the premium for such coverage as may be allocated to each Fund in accordance with the premium allocation methodology approved by the Trustees at this meeting, is hereby approved; and it is further Resolved, that the Secretary, or any Assistant Secretary of the Funds, is hereby designated the officer to make the filings and give or cause to be given the notices required by Paragraph (g) of Rule 17g-1 under the Investment Company Act of 1940. EXHIBIT B Each Company listed below would have provided and maintained a single insured bond in the following amounts had it not been named as an insured under a joint Fidelity Bond:
FIRST DEFINED PORTFOLIO FUND, LLC $750,000 FIRST TRUST VALUE LINE(R) 100 FUND $750,000 FIRST TRUST VALUE LINE(R) DIVIDEND FUND $900,000 FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND $600,000 MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/ UTILITIES DIVIDEND & INCOME FUND $750,000 FIRST TRUST/VALUE LINE(R) & IBBOTSON EQUITY ALLOCATION FUND $600,000 FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II $1,000,000 ENERGY INCOME AND GROWTH FUND $600,000 FIRST TRUST/FIDUCIARY ASSET MANAGEMENT COVERED CALL FUND $750,000 FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND $750,000 FIRST TRUST/FIDAC MORTGAGE INCOME FUND $525,000 FIRST TRUST STRATEGIC HIGH INCOME FUND $600,000 FIRST TRUST EXCHANGE-TRADED FUND $600,000
EX-99 4 exhibit5.txt BLANKET BOND INSURANCE AGREEMENT BLANKET BOND INSURANCE AGREEMENT THIS AGREEMENT is made as of the 9th day of October, 2005, by and among the investment companies listed in Appendix A (collectively referred to herein as the "Funds" or the "Parties"). WITNESSETH: WHEREAS, the Funds, each of which is advised by FIRST TRUST ADVISORS, L.P., an Illinois Limited Partnership ("Adviser"), have agreed to acquire a joint insured policy (the "Policy") issued by Chubb Group of Insurance Companies containing broker's blanket bond coverage ("Blanket Bond Coverage") which shall cover all Parties; WHEREAS, the total amount of the Blanket Bond Coverage under the Policy will be $9,425,000 ("Bond Amount") based upon the determination of each insured Party's Board of Trustees, that such insured Parties should have an amount of coverage, in the aggregate, of $9,025,000 ("Basic Bond Coverage") as provided in Appendix B; WHEREAS, the Parties desire to provide herein for an allocation of the premiums for the Blanket Bond Coverage and a manner of allocating any loss proceeds received under the Policy. The Parties, therefore, agree that: 1. Allocation of Blanket Bond Coverage Premium. Each Party shall pay a proportionate share of the Blanket Bond Coverage annual premium based on assets as set forth in Appendix C. 2. Losses. (a) General. The Policy is a "claims made" insurance policy and a Policy Year is the period from October 9th through the next succeeding October 9th (or any modification of that period as may be agreed by the Parties and the insurer). The insured loss (including all related expenses) of a Party which relates to a claim made by that Party relating to a particular Policy Year under the Blanket Bond Coverage is hereinafter referred to as a "Blanket Bond Loss." Party includes the trustees, directors and officers of an insured Party and other insured agents or employees of such a Party. (b) Blanket Bond Loss. If only one insured Party incurs a Blanket Bond Loss relating to a Policy Year, the proceeds of the Blanket Bond Coverage for that Policy Year will be allocated to that Party. If more than one insured Party incurs a Blanket Bond Loss relating to a particular Policy Year, the proceeds of the Blanket Bond Coverage for that Policy Year will first be allocated among those insured Parties in proportion to their respective premiums paid under Paragraph 1 hereof for Blanket Bond Coverage. If, for that particular Policy Year, after initial allocation, there are remaining proceeds of the Blanket Bond Coverage and there are then insured Parties whose Blanket Bond Losses have not been paid in full, such proceeds shall be further allocated among such insured Parties in proportion to their respective premiums paid for such Coverage (repeating this further allocation procedure as each of such insured Parties is paid in full, until all proceeds have been allocated). If all Blanket Bond Losses relating to a particular Policy Year are not paid at the same time, the insured Parties who claim such Losses for that Policy Year shall make such provisions as they deem suitable to the particular circumstances (taking into account the size of any payment received, the size, nature and expected result of any remaining claims, and all other relevant factors) to permit a later re-allocation of amounts first paid. In no event shall any insured Party who incurs a Blanket Bond Loss relating to a Policy Year which equals or exceeds its Basic Bond Coverage be allocated proceeds of the Blanket Bond Coverage for that particular Policy Year in an amount less than its Basic Bond Coverage. 3. Notices. Each Party agrees to give promptly to the insurer all notices required under the Policy and to send a copy of each such notice to the Adviser. 4. Agent. The Adviser is hereby appointed as the agent for all of the Parties for the purpose of making, adjusting, receiving and enforcing payment of all claims under the Policy and otherwise dealing with the insurer with respect to the Policy. All expenses incurred by the Adviser in its capacity as agent for claims shall be shared by the Parties (including the Adviser) in the same manner as above provided for the sharing of Losses. 5. Modification and Termination. This Agreement may be modified or amended from time to time by mutual written agreement among all of the Parties. It may be terminated with respect to any one Party by not less than 60 days' written notice to the other Parties which are still parties to the Agreement. It shall terminate with respect to any Party as of the date that Party ceases to be an assured under the Policy; provided that such termination shall not affect that Party's rights and obligations hereunder with respect to any claims on behalf of that Party which are paid under the Policy by the insurer after the date the Party ceases to be an insured under the Policy. 6. Further Assurances. Each Party agrees to perform such further acts and execute such further documents as are necessary to effectuate the purposes hereof. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the day and year first above written. Energy Income and Growth Fund First Defined Portfolio Fund, LLC First Trust/Fiduciary Asset Management Covered Call Fund First Trust/Four Corners Senior Floating Rate Income Fund First Trust/Four Corners Senior Floating Rate Income Fund II First Trust Value Line(R) 100 Fund First Trust Value Line(R) Dividend Fund First Trust/Value Line(R) & Ibbotson Equity Allocation Fund Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund First Trust/Aberdeen Global Opportunity Income Fund First Trust/FIDAC Mortgage Income Fund First Trust Strategic High Income Fund First Trust Exchange-Traded Fund By /s/ James A. Bowen --------------------------------------- President APPENDIX A FUNDS Energy Income and Growth Fund First Defined Portfolio Fund, LLC First Trust Energy Portfolio First Trust Financial Services Portfolio First Trust Pharmaceutical Portfolio First Trust Technology Portfolio Target Managed VIP Portfolio The Dow(sm) DART 10 Portfolio Global Dividend Target 15 Portfolio S&P Target 24 Portfolio NASDAQ Target 15 Portfolio Value Line Target 25 Portfolio First Trust 10 Uncommon Values Portfolio The Dow(sm) Target Dividend Portfolio First Trust/Fiduciary Asset Management Covered Call Fund First Trust/Four Corners Senior Floating Rate Income Fund First Trust/Four Corners Senior Floating Rate Income Fund II First Trust Value Line(R) 100 Fund First Trust Value Line(R) Dividend Fund First Trust/Value Line(R) & Ibbotson Equity Allocation Fund Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund First Trust/Aberdeen Global Opportunity Income Fund First Trust/FIDAC Mortgage Income Fund First Trust Strategic High Income Fund First Trust Exchange-Traded Fund First Trust/Dow Jones Select MicroCap(sm) Index Fund APPENDIX B
BASIC BOND EXCESS TOTAL PARTY COVERAGE COVERAGE COVERAGE Energy Income and Growth Fund $600,000 0 $600,000 First Defined Portfolio Fund, LLC $750,000 0 $750,000 First Trust Energy Portfolio 0 First Trust Financial Services Portfolio 0 First Trust Pharmaceutical Portfolio 0 First Trust Technology Portfolio 0 Target Managed VIP Portfolio 0 The Dow(sm) DART 10 Portfolio 0 Global Dividend Target 15 Portfolio 0 S&P Target 24 Portfolio 0 NASDAQ Target 15 Portfolio 0 Value Line Target 25 Portfolio 0 First Trust 10 Uncommon Values Portfolio 0 The Dow(sm) Target Dividend Portfolio 0 First Trust/Fiduciary Asset Management $750,000 0 $750,000 Covered Call Fund First Trust/Four Corners Senior Floating Rate $600,000 0 $600,000 Income Fund First Trust/Four Corners Senior Floating Rate $1,000,000 0 $1,000,000 Income Fund II First Trust Value Line(R)100 Fund $750,000 0 $750,000 First Trust Value Line(R) Dividend Fund $900,000 0 $900,000 First Trust/Value Line(R) & Ibbotson Equity $600,000 0 $600,000 Allocation Fund Macquarie/First Trust Global Infrastructure/Utilities $750,000 0 $750,000 Dividend & Income Fund First Trust/Aberdeen Global Opportunity Income Fund $750,000 0 $750,000 First Trust/FIDAC Mortgage Income Fund $525,000 0 $525,000 First Trust Strategic High Income Fund $600,000 0 $600,000 First Trust Exchange-Traded Fund $600,000 0 $600,000 First Trust/Dow Jones Select MicroCap(sm) Index Fund 0 Total Coverage $9,025,000 $400,000 $9,425,000
APPENDIX C PARTY ANNUAL PREMIUM Energy Income and Growth Fund $2,711.12 First Defined Portfolio Fund, LLC $5,094.63 First Trust/Fiduciary Asset Management Covered Call Fund $5,475.57 First Trust/Four Corners Senior Floating Rate Income Fund $2,188.01 First Trust/Four Corners Senior Floating Rate Income Fund II $10,895.08 First Trust Value Line(R)100 Fund $4,793.17 First Trust Value Line(R) Dividend Fund $8,233.48 First Trust/Value Line(R) & Ibbotson Equity Allocation Fund $2,414.09 Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund $4,333.63 First Trust/Aberdeen Global Opportunity Income Fund $7,013.42 First Trust/FIDAC Mortgage Income Fund $1,364.75 First Trust Strategic High Income Fund $2,438.09 First Trust Exchange-Traded Fund $44.97 -----END PRIVACY-ENHANCED MESSAGE-----