BLANKET BOND INSURANCE AGREEMENT



         THIS AGREEMENT is made as of this 9th day of October, 2004, 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 $6,400,000 ("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 $6,400,000 ("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

portion of the Blanket Bond Coverage annual premium as set forth in Appendix C.

These amounts have been determined based upon the proportion of the premium that

each such insured Party would pay for its Basic Bond Coverage if it maintained a

single insured bond to the total of such premiums by all of such insured

Parties.



          2. Losses.



         (a) General. The Policy is a "claims made" insurance policy and a

Policy Year is the period from October 9, 2004, through the next succeeding

October 9, 2005 (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

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