UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

SCHEDULE 13G

 

Under the Securities Exchange Act of 1934

(Amendment No. 1)*

 

 

First Trust/Value Line® & Ibbotson Equity Allocation Fund

---

(Name of Issuer)

Common Shares, par value $0.01 per share

---

(Title of Class of Securities)

 

 

33735H105                                 (CUSIP Number)

December 31, 2006

---

(Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule is filed:

 

¨	Rule 13d-1(b)

 

x	Rule 13d-1(c)

 

¨	Rule 13d-1(d)

 

*	The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

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CUSIP No. 33735H105

 

1.		Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only).
		QVT Financial LP
		11-3694008
2.		Check the Appropriate Box if a Member of a Group (See Instructions)
		(a)  ¨
		(b)  x
3.		SEC Use Only
4.		Citizenship or Place of Organization
		Delaware

Number of Shares Beneficially Owned by Each Reporting Person With:		5.    Sole Voting Power
		0
		6.    Shared Voting Power
		0
		7.    Sole Dispositive Power
		0
		8.    Shared Dispositive Power
		0

9.		Aggregate Amount Beneficially Owned by Each Reporting Person
		0
10.		Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)
				¨
11.		Percent of Class Represented by Amount in Row (9)
		0%
12.		Type of Reporting Person (See Instructions)
		PN

 

Page 2 of 7 pages

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CUSIP No. 33735H105

 

1.		Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only).
		QVT Financial GP LLC             11-3694007
2.		Check the Appropriate Box if a Member of a Group (See Instructions)
		(a)  ¨
		(b)  x
3.		SEC Use Only
4.		Citizenship or Place of Organization
		Delaware

Number of Shares Beneficially Owned by Each Reporting Person With:		5.    Sole Voting Power
		0
		6.    Shared Voting Power
		0
		7.    Sole Dispositive Power
		0
		8.    Shared Dispositive Power
		0

9.		Aggregate Amount Beneficially Owned by Each Reporting Person
		0
10.		Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)		¨
11.		Percent of Class Represented by Amount in Row (9)
		0%
12.		Type of Reporting Person (See Instructions)
		OO

 

Page 3 of 7 pages

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Item 1.

(a).

Name of Issuer

First Trust/Value Line® & Ibbotson Equity Allocation Fund (the “Issuer”)

(b).

Address of Issuer’s Principal Executive Offices

The address of the Issuer’s principal executive offices is:

1001 Warrenville Road, Suite 300, Lisle, Illinois 60532, United States

Item 2.

(a).

Name of Person Filing

(b).

Address of Principal Business Office or, if none, Residence

(c).

Citizenship

QVT Financial LP

1177 Avenue of the Americas, 9th Floor

New York, New York 10036

Delaware Limited Partnership

QVT Financial GP LLC

1177 Avenue of the Americas, 9th Floor

New York, New York 10036

Delaware Limited Liability Company

(d).

Title of Class of Securities

The title of the securities is common shares, par value $0.01 per share (the “Common Shares”).

(e).

CUSIP Number

The CUSIP number of the Common Shares is 33735H105.

Item 3.

If this statement is filed pursuant to §§ 240.13d-1(b) or 240.13d-2(b) or (c), check whether the person filing is a:

(a)

¨

Broker or dealer registered under section 15 of the Act (15 U.S.C. 78o).

(b)

¨

Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c).

(c)

¨

Insurance company as defined in section 3(a)(19) of the Act (15 U.S.C. 78c).

(d)

¨

Investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8).

(e)

¨

An investment adviser in accordance with § 240.13d-1(b)(1)(ii)(E);

(f)

¨

An employee benefit plan or endowment fund in accordance with § 240.13d-1(b)(1)(ii)(F);

(g)

¨

A parent holding company or control person in accordance with § 240.13d-1(b)(1)(ii)(G);

(h)

¨

A savings associations as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813);

(i)

¨

A church plan that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3);

(j)

¨

Group, in accordance with § 240.13d-1(b)(1)(ii)(J).

 

Page 4 of 7 pages

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Item 4.		Ownership.
		(a)		Amount beneficially owned:
				As of December 31, 2006, the reporting persons own no shares of the Common Stock.
		(b)		Percent of class:
				See Item 11 of the Cover Pages to this Schedule 13G.
		(c)		Number of shares as to which the person has:
				(i)		Sole power to vote or to direct the vote
						0
				(ii)		Shared power to vote or to direct the vote
						0
				(iii)		Sole power to dispose or to direct the disposition of
						0
				(iv)		Shared power to dispose or to direct the disposition of
						0
Item 5.		Ownership of Five Percent or Less of a Class
		If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following…..x.
Item 6.		Ownership of More than Five Percent on Behalf of Another Person.
		Not Applicable
Item 7.		Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company
		Not Applicable
Item 8.		Identification and Classification of Members of the Group
		Not Applicable
Item 9.		Notice of Dissolution of Group
		Not Applicable
Item 10.		Certification
		By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.

 

Page 5 of 7 pages

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SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Dated: February 13, 2007

 

QVT FINANCIAL LP
By QVT Financial GP LLC, its General Partner
By:		/s/ Nicholas Brumm
Name:		Nicholas Brumm
Title:		Managing Member
By:		/s/ Tracy Fu
Name:		Tracy Fu
Title:		Managing Member
QVT FINANCIAL GP LLC
By:		/s/ Nicholas Brumm
Name:		Nicholas Brumm
Title:		Managing Member
By:		/s/ Tracy Fu
Name:		Tracy Fu
Title:		Managing Member

 

Page 6 of 7 pages

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EXHIBIT A

JOINT FILING AGREEMENT

The undersigned hereby agree that the statement on Schedule 13G signed by each of the undersigned shall be filed on behalf of each of the undersigned pursuant to and in accordance with the provisions of Rule 13d-1(k) under the Securities Exchange Act of 1934, as amended.

Dated: February 13, 2007

 

QVT FINANCIAL LP
By QVT Financial GP LLC, its General Partner
By:		/s/ Nicholas Brumm
Name:		Nicholas Brumm
Title:		Managing Member
By:		/s/ Tracy Fu
Name:		Tracy Fu
Title:		Managing Member
QVT FINANCIAL GP LLC
By:		/s/ Nicholas Brumm
Name:		Nicholas Brumm
Title:		Managing Member
By:		/s/ Tracy Fu
Name:		Tracy Fu
Title:		Managing Member

 

Page 7 of 7 pages