EX-99 4 exhibit5.txt BLANKET BOND INSURANCE AGREEMENT BLANKET BOND INSURANCE AGREEMENT THIS AGREEMENT is made as of the 9th day of October, 2011, by and among the investment companies listed in Appendix A (collectively referred to herein as the "Funds"), First Trust Advisors L.P. (the "Advisor") and First Trust Portfolios L.P. (collectively, with the Advisor and the Funds referred to as the "Parties"). WITNESSETH: WHEREAS, the Parties have agreed to acquire a joint insured policy (the "Policy") issued by ICI Mutual Insurance Company 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 $15,000,000 ("Bond Amount") based upon the determination of each Fund's Board of Trustees that such insured Parties should have an amount of coverage, in the aggregate, of at least $13,800,000 ("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 the allocation 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 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 that 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. 4. Agent. The Advisor 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 Advisor in its capacity as agent for claims shall be shared by the Parties (including the Advisor) 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 insured 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 Trust Enhanced Equity Income Fund First Trust Senior Floating Rate Income Fund II Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund First Trust/Aberdeen Global Opportunity Income Fund First Trust Mortgage Income Fund First Trust Strategic High Income Fund II First Trust/Aberdeen Emerging Opportunity Fund First Trust Specialty Finance and Financial Opportunities Fund First Trust Active Dividend Income Fund First Trust High Income Long/Short Fund First Trust Energy Infrastructure Fund First Defined Portfolio Fund, LLC First Trust Exchange-Traded Fund First Trust Exchange-Traded Fund II First Trust Exchange-Traded AlphaDEX(R) Fund First Trust Exchange-Traded AlphaDEX(R) Fund II First Trust Series Fund By: /s/ James A. Bowen ----------------------------- James A. Bowen, President First Trust Advisors L.P. First Trust Portfolios L.P. By: /s/ James A. Bowen ----------------------------- James A. Bowen, CEO APPENDIX A FIRST DEFINED PORTFOLIO FUND, LLC Global Dividend Target 15 Portfolio NASDAQ(R) Target 15 Portfolio S&P Target 24 Portfolio Target Managed VIP Portfolio The Dow(R) DART 10 Portfolio The Dow(R) Target Dividend Portfolio Value Line(R) Target 25 Portfolio Target Focus Four Portfolio CLOSED-END FUNDS Energy Income and Growth Fund First Trust Enhanced Equity Income Fund First Trust Senior Floating Rate Income Fund II Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund First Trust/Aberdeen Global Opportunity Income Fund First Trust Mortgage Income Fund First Trust Strategic High Income Fund II First Trust/Aberdeen Emerging Opportunity Fund First Trust Specialty Finance and Financial Opportunities Fund First Trust Active Dividend Income Fund First Trust High Income Long/Short Fund FIRST TRUST EXCHANGE-TRADED FUNDS First Trust Exchange-Traded Fund First Trust Dow Jones Select MicroCap Index(SM) Fund First Trust Morningstar Dividend LeadersSM Index Fund First Trust US IPO Index Fund First Trust NASDAQ-100 Equal Weighted Index(SM) Fund First Trust NASDAQ-100-Technology Sector Index(SM) Fund First Trust NYSE Arca Biotechnology Index Fund First Trust Dow Jones Internet Index(SM) Fund First Trust Strategic Value Index Fund First Trust Value Line(R) Equity Allocation Index Fund First Trust Value Line(R) Dividend Index Fund First Trust NASDAQ-100 Ex-Technology Sector Index(SM) Fund First Trust NASDAQ(R) Clean Edge(R) Green Energy Index Fund First Trust S&P REIT Index Fund First Trust ISE Water Index Fund First Trust ISE Revere Natural Gas Index Fund First Trust ISE Chindia Index Fund First Trust Value Line(R) 100 Exchange-Traded Fund First Trust NASDAQ ABA Community Bank Index Fund First Trust Exchange-Traded AlphaDEX(R) Fund First Trust Consumer Discretionary AlphaDEX(R) Fund First Trust Consumer Staples AlphaDEX(R) Fund First Trust Energy AlphaDEX(R) Fund First Trust Financial AlphaDEX(R) Fund First Trust Health Care AlphaDEX(R) Fund First Trust Industrials/Producer Durables AlphaDEX(R) Fund First Trust Materials AlphaDEX(R) Fund First Trust Technology AlphaDEX(R) Fund First Trust Utilities AlphaDEX(R) Fund First Trust Large Cap Core AlphaDEX(R) Fund First Trust Mid Cap Core AlphaDEX(R) Fund First Trust Mid Cap Growth AlphaDEX(R) Fund First Trust Small Cap Core AlphaDEX(R) Fund First Trust Small Cap Value AlphaDEX(R) Fund First Trust Small Cap Growth AlphaDEX(R) Fund First Trust Large Cap Value AlphaDEX(R) Fund First Trust Large Cap Growth AlphaDEX(R) Fund First Trust Multi Cap Value AlphaDEX(R) Fund First Trust Multi Cap Growth AlphaDEX(R) Fund First Trust Mega Cap AlphaDEX(R) Fund First Trust Exchange-Traded Fund II First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund First Trust STOXX(R) European Select Dividend Index Fund First Trust Dow Jones Global Select Dividend Index Fund First Trust ISE Global Wind Energy Index Fund First Trust ISE Global Engineering and Construction Index Fund First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund First Trust ISE Global Copper Index Fund First Trust ISE Global Platinum Index Fund First Trust BICK Index Fund First Trust ISE Cloud Computing Index Fund First Trust NASDAQ CEA Smartphone Index Fund First Trust NASDAQ Global Auto Index Fund First Trust Exchange-Traded AlphaDEX Fund II First Trust Developed Markets Ex-US AlphaDEX(R) Fund First Trust Emerging Markets AlphaDEX(R) Fund First Trust Asia Pacific Ex-Japan AlphaDEX(R) Fund First Trust Europe AlphaDEX(R) Fund First Trust Latin America AlphaDEX(R) Fund First Trust Brazil AlphaDEX(R) Fund First Trust China AlphaDEX(R) Fund First Trust Japan AlphaDEX(R) Fund First Trust South Korea AlphaDEX(R) Fund FIRST TRUST SERIES FUND First Trust Preferred Securities and Income Fund First Trust/Confluence Small Cap Value Fund APPENDIX B
RULE 17G-1 REQUIRED BOND LIMITS FIRST DEFINED PORTFOLIO FUND N/A Global Dividend Target 15 Portfolio N/A NASDAQ(R) Target 15 Portfolio N/A S&P Target 24 Portfolio N/A Target Managed VIP Portfolio N/A The Dow(R) DART 10 Portfolio N/A The Dow(R) Target Dividend Portfolio N/A Value Line(R) Target 25 Portfolio N/A ---------------------------------------------------------------------------------------------- -------------- SUB-TOTAL $525,000 FIRST TRUST CLOSED-END FUNDS Energy Income and Growth Fund $900,000 First Trust Enhanced Equity Income Fund $750,000 First Trust Senior Floating Rate Income Fund II $900,000 Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund $600,000 First Trust/Aberdeen Global Opportunity Income Fund $750,000 First Trust Mortgage Income Fund $450,000 First Trust Strategic High Income Fund $400,000 First Trust Strategic High Income Fund II $400,000 First Trust Strategic High Income Fund III $400,000 First Trust/Aberdeen Emerging Opportunity Fund $525,000 First Trust Specialty Finance and Financial Opportunities Fund $525,000 First Trust Active Dividend Income Fund $450,000 First Trust High Income Long/Short Fund $1,000,000 ---------------------------------------------------------------------------------------------- -------------- SUB-TOTAL $8,050,000 FIRST TRUST EXCHANGE-TRADED FUND First Trust Dow Jones Select MicroCap Index(SM) Fund N/A First Trust Morningstar Dividend LeadersSM Index Fund N/A First Trust US IPO Index Fund N/A First Trust NASDAQ-100 Equal Weighted Index(SM) Fund N/A First Trust NASDAQ-100-Technology Sector Index(SM) Fund N/A First Trust NYSE Arca Biotechnology Index Fund N/A First Trust Dow Jones Internet Index(SM) Fund N/A First Trust Strategic Value Index Fund N/A First Trust Value Line(R) Equity Allocation Index Fund N/A First Trust Value Line(R) Dividend Index Fund N/A First Trust NASDAQ-100 Ex-Technology Sector Index(SM) Fund N/A First Trust NASDAQ(R) Clean Edge(R) Green Energy Index Fund N/A First Trust S&P REIT Index Fund N/A First Trust ISE Water Index Fund N/A First Trust ISE Revere Natural Gas Index Fund N/A First Trust ISE Chindia Index Fund N/A First Trust Value Line(R) 100 Exchange-Traded Fund N/A First Trust NASDAQ ABA Community Bank Index Fund N/A ---------------------------------------------------------------------------------------------- -------------- SUB-TOTAL $1,900,000 FIRST TRUST EXCHANGE-TRADED ALPHADEX(R) FUND First Trust Consumer Discretionary AlphaDEX(R) Fund N/A First Trust Consumer Staples AlphaDEX(R) Fund N/A First Trust Energy AlphaDEX(R) Fund N/A First Trust Financial AlphaDEX(R) Fund N/A First Trust Health Care AlphaDEX(R) Fund N/A First Trust Industrials/Producer Durables AlphaDEX(R) Fund N/A First Trust Materials AlphaDEX(R) Fund N/A First Trust Technology AlphaDEX(R) Fund N/A First Trust Utilities AlphaDEX(R) Fund N/A First Trust Large Cap Core AlphaDEX(R) Fund N/A First Trust Mid Cap Core AlphaDEX(R) Fund N/A First Trust Mid Cap Growth AlphaDEX(R) Fund N/A First Trust Small Cap Core AlphaDEX(R) Fund N/A First Trust Small Cap Value AlphaDEX(R) Fund N/A First Trust Small Cap Growth AlphaDEX(R) Fund N/A First Trust Large Cap Value AlphaDEX(R) Fund N/A First Trust Mega Cap AlphaDEX(R) Fund N/A ---------------------------------------------------------------------------------------------- -------------- SUB-TOTAL $1,900,000 FIRST TRUST EXCHANGE-TRADED FUND II First Trust FTSE EPRA/NAREIT Developed Markets Real Estate Index Fund N/A First Trust STOXX(R) European Select Dividend Index Fund N/A First Trust Dow Jones Global Select Dividend Index Fund N/A First Trust ISE Global Wind Energy Index Fund N/A First Trust ISE Global Engineering and Construction Index Fund N/A First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure Index Fund N/A First Trust ISE Global Copper Index Fund N/A First Trust ISE Global Platinum Index Fund N/A First Trust BICK Index Fund N/A First Trust ISE Cloud Computing Index Fund N/A First Trust NASDAQ CEA Smartphone Index Fund N/A First Trust NASDAQ Global Auto Index Fund N/A ---------------------------------------------------------------------------------------------- -------------- SUB-TOTAL $900,000 FIRST TRUST EXCHANGE-TRADED ALPHADEX(R) FUND II First Trust Developed Markets Ex-US AlphaDEX(R) Fund N/A First Trust Emerging Markets AlphaDEX(R) Fund N/A First Trust Asia Pacific Ex-Japan AlphaDEX(R) Fund N/A First Trust Europe AlphaDEX(R) Fund N/A First Trust Latin America AlphaDEX(R) Fund N/A First Trust Brazil AlphaDEX(R) Fund N/A First Trust China AlphaDEX(R) Fund N/A First Trust Japan AlphaDEX(R) Fund N/A First Trust South Korea AlphaDEX(R) Fund N/A ---------------------------------------------------------------------------------------------- -------------- SUB_TOTAL $350,000 FIRST TRUST SERIES FUND First Trust Preferred Securities and Income Fund N/A First Trust/Confluence Small Cap Value Fund N/A ---------------------------------------------------------------------------------------------- -------------- SUB-TOTAL $175,000 GRAND TOTAL $13,800,000
APPENDIX C
FIRST DEFINED PORTFOLIO FUND PREMIUM Target Managed VIP $104 DART 10 $22 Nasdaq Target 15 $26 S&P Target 24 $35 Global Target Dividend 15 $115 Value Line Target 25 $38 Target Focus Four $35 Dow Target Div $80 ----------------------------------------------------------------------------------- ---------------- Total $455 FIRST TRUST EXCHANGE-TRADED FUND First Trust Dow Jones Select MicroCap Index Fund $273 First Trust Morningstar Dividend Leaders Index Fund $1,225 First Trust US IPO Index Fund $77 First Trust NASDAQ-100 Equal Weighted Index Fund $341 First Trust NASDAQ-100 Technology Sector Index Fund $782 First Trust Dow Jones Internet Index Fund $1,975 First Trust NYSE Arca Biotechnology Index Fund $1,854 First Trust Strategic Value Index Fund $160 First Trust NASDAQ-100 Ex-Technology $123 First Trust NASDAQ Clean Edge $116 First Trust NASDAQ(R) ABA Community Bank Index Fund $54 First Trust ISE Water $241 First Trust ISE-Revere Natural Gas $1,774 First Trust ISE Chindia $470 First Trust S&P REIT $1,150 First Trust Value Line Equity Allocation $30 First Trust Value Line Dividend Index $1,483 First Trust Value Line 100 Exchange-Traded $267 ----------------------------------------------------------------------------------- ---------------- Total $12,395 FIRST TRUST EXCHANGE-TRADED FUND II First Trust Dow Jones STOXX European Select Dividend $45 First Trust FTSE EPRA/NAREIT Developed Markets Real Estate $310 First Trust Dow Jones Global Select Dividend $491 First Trust ISE Global Wind Energy $180 First Trust ISE Global Engineering and Construction $150 First Trust NASDAQ(R) Clean Edge(R) Smart Grid Infrastructure $87 First Trust ISE Global Copper Index Fund $295 First Trust ISE Global Platinum Index Fund $39 First Trust BICK Index Fund $212 First Trust NASDAQ CEA Smartphone Index Fund $70 First Trust NASDAQ Global Auto Index Fund $17 First Trust ISE Cloud Computing Index Fund $273 ----------------------------------------------------------------------------------- ---------------- Total $2,169 FIRST TRUST EXCHANGE-TRADED ALPHADEX FUND First Trust Large Cap Core AlphaDEX Fund $1,117 First Trust Mid Cap Core AlphaDEX Fund $963 First Trust Small Cap Core AlphaDEX Fund $491 First Trust Large Cap Value AlphaDEX Fund $789 First Trust Large Cap Growth AlphaDEX Fudn $565 First Trust Multi Cap Value AlphaDEX Fund $179 First Trust Multi Cap Growth AlphaDEX Fund $173 First Trust Consumer Discretionary AlphaDEX Fund $1,739 First Trust Consumer Staples AlphaDEX Fund $909 First Trust Energy AlphaDEX Fund $437 First Trust Financials AlphaDEX Fund $361 First Trust Health Care AlphaDex Fund $818 First Trust Industrials AlphaDEX Fund $260 First Trust Materials AlphaDEX Fund $1,358 First Trust Technology AlphaDex Fund $623 First Trust Utilities AlphaDEX Fund $451 First Trust Mid Cap Growth AlphaDEX Fund $22 First Trust Mid Cap Value AlphaDEX Fund $12 First Trust Small Cap Growth AlphaDEX Fund $21 First Trust Small Cap Value AlphaDEX Fund $8 First Trust Mega Cap AlphaDEX Fund $17 ----------------------------------------------------------------------------------- ---------------- Total $11,313 FIRST TRUST EXCHANGE-TRADED ALPHADEX FUND II First Trust Developed Markets ex-US AlphaDEX Fund $48 First Trust Emerging Markets AlphaDEX Fund $43 First Trust Asia Pacific ex-Japan AlphaDEX Fund $11 First Trust Europe AlphaDEX Fund $11 First Trust Latin America AlphaDEX Fund $12 First Trust Brazil AlphaDEX Fund $33 First Trust China AlphaDEX Fund $9 First Trust Japan AlphaDEX Fund $19 First Trust South Korea AlphaDEX Fund $6 ----------------------------------------------------------------------------------- ---------------- Total $192 FIRST TRUST OPEN-END FUNDS First Trust Preferred Securities and Income Fund $44 First Trust/Confluence Small Cap Value Fund $2 ----------------------------------------------------------------------------------- ---------------- Total $46 FIRST TRUST CLOSED-END FUNDS First Trust Energy Infrastructure Fund $1,668 First Trust High Income Long/Short Fund $2,932 Macquarie/First Trust Global Opportunity Dividend & Income Fund $868 First Trust Senior Floating Rate Income Fund II $2,464 Energy Income and Growth Fund $2,453 First Trust Enhanced Equity Income Fund $1,157 First Trust/Aberdeen Global Opportunity Income Fund $1,887 First Trust Mortgage Income Fund $485 First Trust Strategic High Income Fund II $876 First Trust/Aberdeen Emerging Opportunity Fund $563 First Trust/ Specialty Finance and Financial Opp Fd. $548 First Trust Active Dividend Income Fund $369 ----------------------------------------------------------------------------------- ---------------- Total $16,270 First Trust Advisors L.P. $24,990 First Trust Portfolios L.P. $3,570 TOTAL $71,400