UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21636
First Trust/Aberdeen Global Opportunity Income Fund
(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Name and address of agent for service)
Registrant’s telephone number, including area code: (630) 765-8000
Date of fiscal year end: December 31
Date of reporting period: June 30, 2022
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
(a) | The Report to Shareholders is attached herewith. |
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Fund Statistics | |
Symbol on New York Stock Exchange | FAM |
Common Share Price | $6.05 |
Common Share Net Asset Value (“NAV”) | $6.72 |
Premium (Discount) to NAV | (9.97)% |
Net Assets Applicable to Common Shares | $68,191,463 |
Current Monthly Distribution per Common Share(1) | $0.0600 |
Current Annualized Distribution per Common Share | $0.7200 |
Current Distribution Rate on Common Share Price(2) | 11.90% |
Current Distribution Rate on NAV(2) | 10.71% |
Performance | |||||
Average Annual Total Returns | |||||
6 Months Ended 6/30/22 | 1 Year Ended 6/30/22 | 5 Years Ended 6/30/22 | 10 Years Ended 6/30/22 | Inception (11/23/04) to 6/30/22 | |
Fund Performance(3) | |||||
NAV | -26.56% | -29.85% | -3.91% | -0.40% | 3.56% |
Market Value | -33.75% | -34.81% | -4.06% | -1.24% | 2.68% |
Index Performance | |||||
Blended Index(4) | -16.58% | -19.55% | -1.75% | -0.03% | 3.17% |
Bloomberg Global Emerging Markets Index | -18.50% | -19.81% | -0.85% | 2.05% | 4.95% |
Bloomberg Global Aggregate Index | -13.92% | -15.25% | -0.55% | 0.11% | 2.17% |
Fund Allocation | % of Net Assets |
Foreign Sovereign Bonds and Notes | 90.7% |
Foreign Corporate Bonds and Notes | 31.0 |
U.S. Government Bonds and Notes | 18.2 |
Corporate Bonds and Notes | 0.7 |
Outstanding Loans | (46.6) |
Net Other Assets and Liabilities(5) | 6.0 |
Total | 100.0% |
(1) | Most recent distribution paid or declared through June 30, 2022. Subject to change in the future. |
(2) | Distribution rates are calculated by annualizing the most recent distribution paid or declared through the report date and then dividing by Common Share Price or NAV, as applicable, as of June 30, 2022. Subject to change in the future. |
(3) | Total return is based on the combination of reinvested dividend, capital gain, and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan and changes in NAV per share for NAV returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results. |
(4) | Blended Index consists of the following: FTSE World Government Bond Index (40.0%); JPMorgan Emerging Markets Bond Index - Global Diversified (30.0%); JPMorgan Global Bond Index - Emerging Markets Diversified (30.0%). The Blended Index returns are calculated by using the monthly return of the three indices during each period shown above. At the beginning of each month the three indices are rebalanced to a 40.0%, 30.0%, and 30.0% ratio, respectively, to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Index for each period shown above. |
(5) | Includes forward foreign currency contracts. |
Credit Quality(6) | % of Total Investments |
AAA | 18.9% |
AA | 4.1 |
AA- | 4.1 |
A+ | 6.3 |
A | 2.6 |
A- | 3.2 |
BBB+ | 7.4 |
BBB | 4.4 |
BBB- | 3.1 |
BB+ | 1.3 |
BB | 10.9 |
BB- | 9.8 |
B+ | 4.8 |
B | 2.6 |
B- | 3.4 |
CCC+ | 2.9 |
CCC | 0.4 |
CC | 0.2 |
C | 0.3 |
Not Rated | 9.3 |
Total | 100.0% |
Top 10 Countries(7) | % of Total Investments |
United States | 13.4% |
Brazil | 7.6 |
South Africa | 6.7 |
Mexico | 6.6 |
Japan | 6.2 |
Netherlands | 5.2 |
Australia | 4.1 |
Saudi Arabia | 3.2 |
Oman | 2.8 |
Malaysia | 2.8 |
Total | 58.6% |
Industry Classification | % of Total Investments |
Sovereigns | 77.5% |
Banks | 4.9 |
Integrated Oils | 4.4 |
Exploration & Production | 3.1 |
Utilities | 1.4 |
Refining & Marketing | 1.2 |
Financial Services | 0.9 |
Chemicals | 0.7 |
Wireless Telecommunication Services | 0.7 |
Industrial Other | 0.7 |
Real Estate | 0.5 |
Transportation & Logistics | 0.5 |
Metals & Mining | 0.5 |
Power Generation | 0.5 |
Food & Beverage | 0.5 |
Government Development Banks | 0.4 |
Wireline Telecommunications Services | 0.4 |
Oil & Gas Services & Equipment | 0.3 |
Software & Services | 0.3 |
Life Insurance | 0.3 |
Retail - Consumer Staples | 0.2 |
Railroad | 0.1 |
Total | 100.0% |
Top Ten Holdings | % of Total Investments |
United States Treasury Note, 2.38%, 5/15/29 | 10.2% |
Republic of South Africa Government Bond, 9.00%, 1/31/40 | 5.4 |
Netherlands Government Bond, 0.00%, 1/15/24 | 5.2 |
Brazil Notas do Tesouro Nacional, Series F, 10.00%, 1/01/29 | 4.1 |
Treasury Corp. of Victoria, 1.50%, 11/20/30 | 4.1 |
Japan Government Two Year Bond, 0.01%, 2/01/24 | 3.1 |
Japan Government Ten Year Bond, 0.30%, 12/20/24 | 3.1 |
Mexican Bonos, 5.75%, 3/05/26 | 2.8 |
Malaysia Government Bond, 3.89%, 3/15/27 | 2.8 |
United States Treasury Bond, 2.38%, 5/15/51 | 2.2 |
Total | 43.0% |
(6) | The credit quality and ratings information presented above reflects the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including S&P Global Ratings, a subsidiary of S&P Global Inc., Moody’s Investors Service, Inc., Fitch Ratings or a comparably rated NRSRO. For situations in which a security is rated by more than one NRSRO and the ratings are not equivalent, the highest ratings are used. Sub-investment grade ratings are those rated BB+/Ba1 or lower. Investment grade ratings are those rated BBB-/Baa3 or higher. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change. |
(7) | Portfolio securities are included in a country based upon their underlying credit exposure as determined by abrdn Inc., the sub-advisor. |
Performance | |||||
Average Annual Total Returns | |||||
6 Months Ended 6/30/22 | 1 Year Ended 6/30/22 | 5 Years Ended 6/30/22 | 10 Years Ended 6/30/22 | Inception (11/23/04) to 6/30/22 | |
Fund Performance(1) | |||||
NAV | -26.56% | -29.85% | -3.91% | -0.40% | 3.56% |
Market Value | -33.75% | -34.81% | -4.06% | -1.24% | 2.68% |
Index Performance | |||||
Blended Index(2) | -16.58% | -19.55% | -1.75% | -0.03% | 3.17% |
Bloomberg Global Emerging Markets Index | -18.50% | -19.81% | -0.85% | 2.05% | 4.95% |
Bloomberg Global Aggregate Index | -13.92% | -15.25% | -0.55% | 0.11% | 2.17% |
(1) | Total return is based on the combination of reinvested dividend, capital gain and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan and changes in NAV per share for NAV returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results. |
(2) | Blended Index consists of the following: FTSE World Government Bond Index (40.0%); JPMorgan Emerging Markets Bond Index – Global Diversified (30.0%); JPMorgan Global Bond Index – Emerging Markets Diversified (30.0%). The Blended Index returns are calculated by using the monthly return of the three indices during each period shown above. At the beginning of each month the three indices are rebalanced to a 40.0%, 30.0%, and 30.0% ratio, respectively, to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Index for each period shown above. |
Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance.
Principal Value (Local Currency) | Description | Stated Coupon | Stated Maturity | Value (US Dollars) | ||||
FOREIGN SOVEREIGN BONDS AND NOTES (a) – 90.7% | ||||||||
Angola – 1.0% | ||||||||
974,000 | Angolan Government International Bond (USD) (b) | 9.13% | 11/26/49 | $692,952 | ||||
Argentina – 1.8% | ||||||||
383,926 | Argentine Republic Government International Bond (USD) | 1.00% | 07/09/29 | 88,258 | ||||
1,376,581 | Argentine Republic Government International Bond (USD) (c) | 0.50% | 07/09/30 | 324,627 | ||||
2,949,672 | Argentine Republic Government International Bond (USD) (c) | 1.13% | 07/09/35 | 638,970 | ||||
543,200 | Argentine Republic Government International Bond (USD) (c) | 2.00% | 01/09/38 | 155,342 | ||||
1,207,197 | ||||||||
Australia – 5.8% | ||||||||
7,000,000 | Treasury Corp. of Victoria (AUD) | 1.50% | 11/20/30 | 3,929,690 | ||||
Bahrain – 1.5% | ||||||||
700,000 | Bahrain Government International Bond (USD) (d) | 4.25% | 01/25/28 | 629,994 | ||||
510,000 | Bahrain Government International Bond (USD) (b) | 6.25% | 01/25/51 | 381,360 | ||||
1,011,354 | ||||||||
Belarus – 0.1% | ||||||||
500,000 | Republic of Belarus International Bond (USD) (b) (e) | 5.88% | 02/24/26 | 82,500 | ||||
Brazil – 8.8% | ||||||||
7,030,000 | Brazil Notas do Tesouro Nacional, Series F (BRL) | 10.00% | 01/01/25 | 1,203,202 | ||||
5,079,000 | Brazil Notas do Tesouro Nacional, Series F (BRL) | 10.00% | 01/01/27 | 836,821 | ||||
24,870,000 | Brazil Notas do Tesouro Nacional, Series F (BRL) | 10.00% | 01/01/29 | 3,949,487 | ||||
5,989,510 | ||||||||
Canada – 2.7% | ||||||||
2,247,000 | Canadian Government Bond (CAD) | 8.00% | 06/01/23 | 1,822,444 | ||||
Colombia – 1.8% | ||||||||
5,213,000,000 | Colombia Government International Bond (COP) | 9.85% | 06/28/27 | 1,237,597 | ||||
Dominican Republic – 0.8% | ||||||||
359,000 | Dominican Republic International Bond (USD) (d) | 5.50% | 02/22/29 | 313,377 | ||||
340,000 | Dominican Republic International Bond (USD) (b) | 5.88% | 01/30/60 | 233,346 | ||||
546,723 | ||||||||
Ecuador – 0.8% | ||||||||
342,820 | Ecuador Government International Bond (USD) (c) (d) | 5.00% | 07/31/30 | 223,269 | ||||
725,460 | Ecuador Government International Bond (USD) (c) (d) | 0.50% | 07/31/40 | 297,906 | ||||
521,175 | ||||||||
Egypt – 1.9% | ||||||||
786,000 | Egypt Government International Bond (USD) (d) | 7.60% | 03/01/29 | 575,686 | ||||
380,000 | Egypt Government International Bond (USD) (d) | 8.50% | 01/31/47 | 226,266 | ||||
928,000 | Egypt Government International Bond (USD) (b) | 7.90% | 02/21/48 | 533,433 | ||||
1,335,385 | ||||||||
Georgia – 0.9% | ||||||||
758,000 | Georgia Government International Bond (USD) (d) | 2.75% | 04/22/26 | 629,959 | ||||
Germany – 3.1% | ||||||||
3,141,300 | Bundesrepublik Deutschland Bundesanleihe (EUR) (b) | (f) | 08/15/50 | 2,107,099 | ||||
Ghana – 0.5% | ||||||||
662,000 | Ghana Government International Bond (USD) (d) | 7.63% | 05/16/29 | 326,485 |
Principal Value (Local Currency) | Description | Stated Coupon | Stated Maturity | Value (US Dollars) | ||||
FOREIGN SOVEREIGN BONDS AND NOTES (a) (Continued) | ||||||||
Indonesia – 2.8% | ||||||||
27,094,000,000 | Indonesia Treasury Bond (IDR) | 8.38% | 03/15/34 | $1,937,819 | ||||
Iraq – 2.2% | ||||||||
1,300,000 | Iraq International Bond (USD) (b) | 6.75% | 03/09/23 | 1,272,375 | ||||
262,500 | Iraq International Bond (USD) (b) | 5.80% | 01/15/28 | 236,593 | ||||
1,508,968 | ||||||||
Japan – 8.7% | ||||||||
400,000,000 | Japan Government Ten Year Bond (JPY) | 0.30% | 12/20/24 | 2,974,748 | ||||
403,400,000 | Japan Government Two Year Bond (JPY) | 0.01% | 02/01/24 | 2,976,827 | ||||
5,951,575 | ||||||||
Malaysia – 3.9% | ||||||||
11,800,000 | Malaysia Government Bond (MYR) | 3.89% | 03/15/27 | 2,668,537 | ||||
Mexico – 6.1% | ||||||||
20,000,000 | Mexican Bonos (MXN) | 10.00% | 12/05/24 | 1,007,956 | ||||
61,423,900 | Mexican Bonos (MXN) | 5.75% | 03/05/26 | 2,718,445 | ||||
9,387,800 | Mexican Bonos (MXN) | 7.75% | 11/13/42 | 408,438 | ||||
4,134,839 | ||||||||
Netherlands – 7.4% | ||||||||
4,826,100 | Netherlands Government Bond (EUR) (b) (d) | (f) | 01/15/24 | 5,018,928 | ||||
New Zealand – 1.5% | ||||||||
1,694,000 | New Zealand Government Bond (NZD) (b) | 2.75% | 04/15/25 | 1,035,103 | ||||
Nigeria – 0.4% | ||||||||
513,000 | Nigeria Government International Bond (USD) (d) | 7.63% | 11/28/47 | 308,441 | ||||
Norway – 1.1% | ||||||||
7,511,000 | Norway Government Bond (NOK) (b) (d) | 1.75% | 02/17/27 | 722,732 | ||||
Oman – 2.5% | ||||||||
1,900,000 | Oman Government International Bond (USD) (d) | 7.00% | 01/25/51 | 1,680,502 | ||||
Peru – 1.6% | ||||||||
4,626,000 | Peruvian Government International Bond (PEN) (b) | 6.90% | 08/12/37 | 1,094,299 | ||||
Poland – 3.7% | ||||||||
3,471,000 | Republic of Poland Government Bond (PLN) | 2.50% | 07/25/27 | 621,022 | ||||
13,364,000 | Republic of Poland Government Bond (PLN) | 1.75% | 04/25/32 | 1,918,835 | ||||
2,539,857 | ||||||||
Qatar – 2.4% | ||||||||
1,733,000 | Qatar Government International Bond (USD) (b) | 4.40% | 04/16/50 | 1,658,377 | ||||
Russia – 0.2% | ||||||||
423,957,000 | Russian Federal Bond - OFZ (RUB) (e) (g) (h) | 7.05% | 01/19/28 | 115,625 | ||||
50,000,000 | Russian Federal Bond - OFZ (RUB) (e) (g) (h) | 7.70% | 03/23/33 | 13,636 | ||||
129,261 | ||||||||
Rwanda – 0.6% | ||||||||
532,000 | Rwanda International Government Bond (USD) (d) | 5.50% | 08/09/31 | 417,327 | ||||
Saudi Arabia – 1.5% | ||||||||
1,045,000 | Saudi Government International Bond (USD) (d) | 4.38% | 04/16/29 | 1,061,981 |
Principal Value (Local Currency) | Description | Stated Coupon | Stated Maturity | Value (US Dollars) | ||||
FOREIGN SOVEREIGN BONDS AND NOTES (a) (Continued) | ||||||||
South Africa – 7.6% | ||||||||
104,301,800 | Republic of South Africa Government Bond (ZAR) | 9.00% | 01/31/40 | $5,172,536 | ||||
United Kingdom – 3.4% | ||||||||
1,198,800 | United Kingdom Gilt (GBP) (b) | 0.13% | 01/31/24 | 1,417,490 | ||||
560,900 | United Kingdom Gilt (GBP) (b) | 4.25% | 12/07/49 | 896,406 | ||||
2,313,896 | ||||||||
Uruguay – 0.9% | ||||||||
23,485,129 | Uruguay Government International Bond (UYU) | 4.38% | 12/15/28 | 644,771 | ||||
Uzbekistan – 0.7% | ||||||||
623,000 | Republic of Uzbekistan International Bond (USD) (d) | 3.70% | 11/25/30 | 452,654 | ||||
Total Foreign Sovereign Bonds and Notes | 61,892,473 | |||||||
(Cost $84,462,000) | ||||||||
FOREIGN CORPORATE BONDS AND NOTES (a) (i) – 31.0% | ||||||||
Barbados – 0.4% | ||||||||
337,000 | Sagicor Financial Co., Ltd. (USD) (d) | 5.30% | 05/13/28 | 309,165 | ||||
Brazil – 1.9% | ||||||||
440,000 | Banco do Brasil S.A. (USD) (b) (j) | 6.25% | (k) | 386,514 | ||||
228,000 | BRF S.A. (USD) (d) | 5.75% | 09/21/50 | 152,162 | ||||
410,034 | Guara Norte Sarl (USD) (d) | 5.20% | 06/15/34 | 333,339 | ||||
500,000 | Itau Unibanco Holding S.A. (USD) (b) (j) | 4.63% | (k) | 400,687 | ||||
1,550,000 | OAS Finance Ltd. (USD) (j) (l) (m) (n) | 8.88% | (k) | 11,625 | ||||
460,000 | OAS Investments GmbH (USD) (l) (m) (n) | 8.25% | 10/19/19 | 3,450 | ||||
1,287,777 | ||||||||
Chile – 0.6% | ||||||||
468,000 | Empresa Nacional del Petroleo (USD) (d) | 3.45% | 09/16/31 | 379,972 | ||||
China – 1.3% | ||||||||
888,000 | Huarong Finance II Co., Ltd. (USD) (b) | 5.50% | 01/16/25 | 862,470 | ||||
Colombia – 1.1% | ||||||||
831,000 | Ecopetrol S.A. (USD) | 5.38% | 06/26/26 | 771,683 | ||||
Dominican Republic – 0.6% | ||||||||
491,000 | AES Andres BV (USD) (d) | 5.70% | 05/04/28 | 419,148 | ||||
Ecuador – 0.7% | ||||||||
478,305 | International Airport Finance S.A. (USD) (d) | 12.00% | 03/15/33 | 466,737 | ||||
Georgia – 0.8% | ||||||||
540,000 | Bank of Georgia JSC (USD) (d) | 6.00% | 07/26/23 | 534,600 | ||||
Ghana – 1.1% | ||||||||
900,000 | Tullow Oil PLC (USD) (b) | 7.00% | 03/01/25 | 733,766 | ||||
Honduras – 0.7% | ||||||||
490,000 | Inversiones Atlantida S.A. (USD) (d) | 7.50% | 05/19/26 | 462,315 | ||||
India – 2.9% | ||||||||
475,000 | Adani Green Energy UP Ltd. / Prayatna Developers Pvt. Ltd. / Parampujya Solar Energy (USD) (d) | 6.25% | 12/10/24 | 456,000 | ||||
120,000,000 | HDFC Bank Ltd. (INR) (b) | 8.10% | 03/22/25 | 1,509,666 | ||||
1,965,666 |
Principal Value (Local Currency) | Description | Stated Coupon | Stated Maturity | Value (US Dollars) | ||||
FOREIGN CORPORATE BONDS AND NOTES (a) (i) (Continued) | ||||||||
Indonesia – 0.8% | ||||||||
560,000 | Medco Platinum Road Pte Ltd. (USD) (d) | 6.75% | 01/30/25 | $520,755 | ||||
Israel – 0.6% | ||||||||
480,000 | Energean Israel Finance Ltd. (USD) (b) (d) | 4.88% | 03/30/26 | 425,424 | ||||
Mexico – 3.3% | ||||||||
400,000 | BBVA Bancomer S.A. (USD) (b) (j) | 5.13% | 01/18/33 | 339,388 | ||||
237,000 | Braskem Idesa S.A.P.I. (USD) (d) | 6.99% | 02/20/32 | 183,638 | ||||
22,160,000 | Petroleos Mexicanos (MXN) (b) | 7.19% | 09/12/24 | 1,012,056 | ||||
570,000 | Petroleos Mexicanos (USD) | 7.69% | 01/23/50 | 388,047 | ||||
350,000 | Sixsigma Networks Mexico SA de CV (USD) (d) | 7.50% | 05/02/25 | 310,951 | ||||
2,234,080 | ||||||||
Nigeria – 2.5% | ||||||||
526,000 | Access Bank PLC (USD) (d) | 6.13% | 09/21/26 | 426,744 | ||||
464,000 | BOI Finance BV (EUR) (d) | 7.50% | 02/16/27 | 393,886 | ||||
270,000 | IHS Netherlands Holdco BV (USD) (d) | 8.00% | 09/18/27 | 237,211 | ||||
721,000 | SEPLAT Energy PLC (USD) (d) | 7.75% | 04/01/26 | 647,703 | ||||
1,705,544 | ||||||||
Oman – 1.5% | ||||||||
400,000 | Oryx Funding Ltd. (USD) (d) | 5.80% | 02/03/31 | 378,326 | ||||
652,000 | Oztel Holdings SPC Ltd. (USD) (d) | 6.63% | 04/24/28 | 658,606 | ||||
1,036,932 | ||||||||
Peru – 0.5% | ||||||||
522,000 | Petroleos del Peru S.A. (USD) (d) | 5.63% | 06/19/47 | 354,003 | ||||
Russia – 0.1% | ||||||||
440,000 | Home Credit & Finance Bank OOO Via Eurasia Capital S.A. (USD) (b) (e) (j) | 8.80% | (k) | 55,000 | ||||
500,000 | Sovcombank Via SovCom Capital DAC (USD) (j) (l) | 7.75% | (k) | 50,000 | ||||
105,000 | ||||||||
Saudi Arabia – 3.0% | ||||||||
1,860,000 | Saudi Arabian Oil Co. (USD) (b) | 2.88% | 04/16/24 | 1,827,366 | ||||
234,000 | Saudi Arabian Oil Co. (USD) (d) | 4.25% | 04/16/39 | 216,895 | ||||
2,044,261 | ||||||||
Singapore – 0.7% | ||||||||
520,000 | Puma International Financing S.A. (USD) (b) | 5.00% | 01/24/26 | 455,780 | ||||
South Africa – 1.9% | ||||||||
530,000 | Eskom Holdings SOC Ltd. (USD) (b) | 7.13% | 02/11/25 | 448,332 | ||||
400,000 | Liquid Telecommunications Financing PLC (USD) (d) | 5.50% | 09/04/26 | 351,972 | ||||
550,000 | Sasol Financing USA LLC (USD) | 6.50% | 09/27/28 | 499,073 | ||||
1,299,377 | ||||||||
Tanzania – 0.6% | ||||||||
452,000 | HTA Group Ltd. (USD) (d) | 7.00% | 12/18/25 | 388,449 | ||||
Trinidad And Tobago – 0.9% | ||||||||
632,000 | Heritage Petroleum Co., Ltd. (USD) (d) | 9.00% | 08/12/29 | 650,170 | ||||
Ukraine – 1.1% | ||||||||
467,000 | Kernel Holding S.A. (USD) (l) | 6.75% | 10/27/27 | 209,258 |
Principal Value (Local Currency) | Description | Stated Coupon | Stated Maturity | Value (US Dollars) | ||||
FOREIGN CORPORATE BONDS AND NOTES (a) (i) (Continued) | ||||||||
Ukraine (Continued) | ||||||||
567,000 | MHP Lux S.A. (USD) (b) (e) | 6.95% | 04/03/26 | $296,541 | ||||
453,000 | NPC Ukrenergo (USD) (l) | 6.88% | 11/09/26 | 115,352 | ||||
460,000 | Ukraine Railways Via Rail Capital Markets PLC (USD) (b) (e) | 8.25% | 07/09/24 | 141,680 | ||||
762,831 | ||||||||
United Arab Emirates – 0.7% | ||||||||
480,000 | MAF Global Securities Ltd. (USD) (b) (j) | 5.50% | (k) | 480,000 | ||||
Zambia – 0.7% | ||||||||
490,000 | First Quantum Minerals Ltd. (USD) (b) | 7.50% | 04/01/25 | 464,250 | ||||
Total Foreign Corporate Bonds and Notes | 21,120,155 | |||||||
(Cost $26,995,147) | ||||||||
CORPORATE BONDS AND NOTES (a) (i) – 0.7% | ||||||||
United States – 0.7% | ||||||||
23,262,000 | JPMorgan Chase Bank, N.A. (UAH) (d) | 11.67% | 11/27/23 | 472,501 | ||||
1,325,000 | JPMorgan Chase Bank, N.A. (UAH) (d) (g) | 11.67% | 11/27/23 | 33,364 | ||||
Total Corporate Bonds and Notes | 505,865 | |||||||
(Cost $934,379) | ||||||||
Principal Value | Description | Stated Coupon | Stated Maturity | Value | ||||
U.S. GOVERNMENT BONDS AND NOTES (a) – 18.2% | ||||||||
$2,488,900 | United States Treasury Bond | 2.38% | 05/15/51 | 2,119,454 | ||||
685,400 | United States Treasury Bond | 1.88% | 11/15/51 | 518,976 | ||||
10,158,800 | United States Treasury Note | 2.38% | 05/15/29 | 9,752,250 | ||||
Total U.S. Government Bonds and Notes | 12,390,680 | |||||||
(Cost $13,837,569) |
Total Investments – 140.6% | 95,909,173 | |
(Cost $126,229,095) | ||
Outstanding Loans – (46.6)% | (31,801,543) | |
Net Other Assets and Liabilities – 6.0% | 4,083,833 | |
Net Assets – 100.0% | $68,191,463 |
Forward Foreign Currency Contracts | ||||||||||||||
Settlement Date | Counterparty | Amount Purchased | Amount Sold | Purchase Value as of 6/30/2022 | Sale Value as of 6/30/2022 | Unrealized Appreciation/ (Depreciation) | ||||||||
08/23/22 | CIT | CNY | 23,124,000 | USD | 3,390,311 | $ 3,454,420 | $ 3,390,311 | $ 64,109 | ||||||
07/14/22 | CIT | GBP | 1,519,000 | USD | 1,996,702 | 1,849,529 | 1,996,702 | (147,173) | ||||||
07/14/22 | GS | ZAR | 4,969,000 | USD | 322,550 | 304,992 | 322,550 | (17,558) | ||||||
07/14/22 | DB | USD | 5,255,518 | AUD | 6,875,000 | 5,255,518 | 4,745,962 | 509,556 | ||||||
08/23/22 | DB | USD | 3,633,997 | BRL | 19,378,000 | 3,633,997 | 3,644,096 | (10,099) | ||||||
07/14/22 | DB | USD | 5,063,182 | CAD | 6,296,000 | 5,063,182 | 4,891,142 | 172,040 | ||||||
08/23/22 | BAR | USD | 512,722 | CNY | 3,472,000 | 512,722 | 518,671 | (5,949) | ||||||
07/14/22 | CIT | USD | 360,977 | EUR | 328,000 | 360,977 | 344,044 | 16,933 | ||||||
07/14/22 | GS | USD | 1,035,725 | MXN | 20,848,000 | 1,035,725 | 1,034,090 | 1,635 | ||||||
07/14/22 | DB | USD | 1,307,647 | NZD | 1,865,000 | 1,307,647 | 1,164,659 | 142,988 | ||||||
07/14/22 | GS | USD | 1,928,008 | PLN | 8,230,000 | 1,928,008 | 1,832,786 | 95,222 | ||||||
07/14/22 | CIT | USD | 1,903,162 | ZAR | 28,006,000 | 1,903,162 | 1,718,976 | 184,186 | ||||||
Net Unrealized Appreciation / (Depreciation) | $1,005,890 |
Counterparty Abbreviations | |
BAR | Barclays Bank |
CIT | Citibank, NA |
DB | Deutsche Bank |
GS | Goldman Sachs |
(a) | All of these securities are available to serve as collateral for the outstanding loans. |
(b) | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933, as amended (the “1933 Act”). |
(c) | Step-up security. A security where the coupon increases or steps up at a predetermined date. Interest rate shown reflects the rate in effect at June 30, 2022. |
(d) | This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A of the 1933 Act, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. Pursuant to procedures adopted by the Fund’s Board of Trustees, this security has been determined to be liquid by abrdn Inc. (“abrdn”), the Fund’s sub-advisor. Although market instability can result in periods of increased overall market illiquidity, liquidity for each security is determined based on security specific factors and assumptions, which require subjective judgment. At June 30, 2022, securities noted as such amounted to $23,049,543 or 33.8% of net assets. |
(e) | Pursuant to procedures adopted by the Fund’s Board of Trustees, this security has been determined to be illiquid by the Sub-Advisor. |
(f) | Zero coupon bond. |
(g) | This security is fair valued by the Advisor’s Pricing Committee in accordance with procedures adopted by the Fund’s Board of Trustees, and in accordance with the provisions of the Investment Company Act of 1940, as amended. At June 30, 2022, securities noted as such are valued at $162,625 or 0.2% of net assets. |
(h) | This security’s value was determined using significant unobservable inputs (see Note 2A – Portfolio Valuation in the Notes to Financial Statements). |
(i) | Portfolio securities are included in a country based upon their underlying credit exposure as determined by abrdn. |
(j) | Fixed-to-floating or fixed-to-variable rate security. The interest rate shown reflects the fixed rate in effect at June 30, 2022. At a predetermined date, the fixed rate will change to a floating rate or a variable rate. |
(k) | Perpetual maturity. |
(l) | This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A of the 1933 Act, and may be resold in transactions exempt from registration, normally to qualified institutional buyers (see Note 2C - Restricted Securities in the Notes to Financial Statements). |
(m) | This issuer is in default and interest is not being accrued by the Fund, nor paid by the issuer. |
(n) | This issuer has filed for bankruptcy protection in a São Paulo state court. |
Currency Exposure Diversification | % of Total Investments† |
USD | 61.2% |
EUR | 7.4 |
JPY | 6.1 |
GBP | 4.3 |
MXN | 4.2 |
ZAR | 3.9 |
CNY | 3.0 |
MYR | 2.8 |
BRL | 2.4 |
IDR | 2.0 |
INR | 1.6 |
COP | 1.3 |
PEN | 1.1 |
NOK | 0.8 |
PLN | 0.7 |
UYU | 0.7 |
UAH | 0.5 |
RUB | 0.1 |
NZD | (0.1) |
AUD | (0.8) |
CAD | (3.2) |
Total | 100.0% |
† | The weightings include the impact of currency forwards. |
Currency Abbreviations | |
AUD | Australian Dollar |
BRL | Brazilian Real |
CAD | Canadian Dollar |
CNY | Chinese Yuan Renminbi |
COP | Colombian Peso |
EUR | Euro |
GBP | British Pound Sterling |
IDR | Indonesian Rupiah |
INR | Indian Rupee |
JPY | Japanese Yen |
MXN | Mexican Peso |
MYR | Malaysian Ringgit |
NOK | Norwegian Krone |
NZD | New Zealand Dollar |
PEN | Peruvian Nuevo Sol |
PLN | Polish Zloty |
RUB | Russian Ruble |
UAH | Ukrainian Hryvnia |
USD | United States Dollar |
UYU | Uruguayan Peso |
ZAR | South African Rand |
ASSETS TABLE | ||||
Total Value at 6/30/2022 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
Foreign Sovereign Bonds and Notes: | ||||
Russia | $ 129,261 | $ — | $ — | $ 129,261 |
Other Country Categories* | 61,763,212 | — | 61,763,212 | — |
Foreign Corporate Bonds and Notes* | 21,120,155 | — | 21,120,155 | — |
U.S. Government Bonds and Notes | 12,390,680 | — | 12,390,680 | — |
Corporate Bonds and Notes* | 505,865 | — | 505,865 | — |
Total Investments | 95,909,173 | — | 95,779,912 | 129,261 |
Forward Foreign Currency Contracts | 1,186,669 | — | 1,186,669 | — |
Total | $ 97,095,842 | $— | $ 96,966,581 | $ 129,261 |
LIABILITIES TABLE | ||||
Total Value at 6/30/2022 | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | |
Forward Foreign Currency Contracts | $ (180,779) | $ — | $ (180,779) | $ — |
* | See Portfolio of Investments for country breakout. |
ASSETS: | |
Investments, at value (Cost $126,229,095) | $ 95,909,173 |
Cash | 1,834,164 |
Unrealized appreciation on forward foreign currency contracts | 1,186,669 |
Receivables: | |
Interest | 1,288,665 |
Interest reclaims | 210,736 |
Prepaid expenses | 16,644 |
Total Assets | 100,446,051 |
LIABILITIES: | |
Outstanding loans | 31,801,543 |
Unrealized depreciation on forward foreign currency contracts | 180,779 |
Due to broker | 31,132 |
Due to custodian foreign currency | 738 |
Payables: | |
Investment advisory fees | 84,816 |
Interest and fees on loans | 58,501 |
Audit and tax fees | 42,159 |
Deferred foreign capital gains tax | 16,032 |
Transfer agent fees | 10,829 |
Administrative fees | 8,849 |
Custodian fees | 8,774 |
Shareholder reporting fees | 6,866 |
Legal fees | 2,143 |
Financial reporting fees | 771 |
Other liabilities | 656 |
Total Liabilities | 32,254,588 |
NET ASSETS | $68,191,463 |
NET ASSETS consist of: | |
Paid-in capital | $ 119,269,682 |
Par value | 101,432 |
Accumulated distributable earnings (loss) | (51,179,651) |
NET ASSETS | $68,191,463 |
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share) | $6.72 |
Number of Common Shares outstanding (unlimited number of Common Shares has been authorized) | 10,143,247 |
INVESTMENT INCOME: | ||
Interest (net of foreign withholding tax of $142,270) | $ 2,841,546 | |
Other | 4,677 | |
Total investment income | 2,846,223 | |
EXPENSES: | ||
Investment advisory fees | 589,859 | |
Interest and fees on loans | 235,447 | |
Administrative fees | 39,852 | |
Audit and tax fees | 34,237 | |
Shareholder reporting fees | 27,313 | |
Custodian fees | 20,883 | |
Transfer agent fees | 17,608 | |
Legal fees | 14,383 | |
Trustees’ fees and expenses | 8,752 | |
Listing expense | 7,864 | |
Financial reporting fees | 4,625 | |
Other | 13,502 | |
Total expenses | 1,014,325 | |
NET INVESTMENT INCOME (LOSS) | 1,831,898 | |
NET REALIZED AND UNREALIZED GAIN (LOSS): | ||
Net realized gain (loss) on: | ||
Investments | (6,447,717) | |
Forward foreign currency contracts | (550,995) | |
Foreign currency transactions | (336,923) | |
Foreign capital gains tax | (2,496) | |
Net realized gain (loss) | (7,338,131) | |
Net change in unrealized appreciation (depreciation) on: | ||
Investments | (21,441,958) | |
Forward foreign currency contracts | 789,784 | |
Foreign currency translation | 443,592 | |
Deferred foreign capital gains tax | 24,062 | |
Net change in unrealized appreciation (depreciation) | (20,184,520) | |
NET REALIZED AND UNREALIZED GAIN (LOSS) | (27,522,651) | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $(25,690,753) |
Six Months Ended 6/30/2022 (Unaudited) | Year Ended 12/31/2021 | ||
OPERATIONS: | |||
Net investment income (loss) | $ 1,831,898 | $ 4,947,264 | |
Net realized gain (loss) | (7,338,131) | 2,550,576 | |
Net increase from payment by the sub-advisor | — | 4,120 | |
Net change in unrealized appreciation (depreciation) | (20,184,520) | (16,616,018) | |
Net increase (decrease) in net assets resulting from operations | (25,690,753) | (9,114,058) | |
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||
Investment operations | (3,905,021) | (3,140,701) | |
Return of capital | — | (6,844,423) | |
Total distributions to shareholders | (3,905,021) | (9,985,124) | |
CAPITAL TRANSACTIONS: | |||
Proceeds from Common Shares reinvested | 15,965 | 46,002 | |
Purchase of Common Shares pursuant to a tender offer | — | (27,269,081) | |
Net increase (decrease) in net assets resulting from capital transactions | 15,965 | (27,223,079) | |
Total increase (decrease) in net assets | (29,579,809) | (46,322,261) | |
NET ASSETS: | |||
Beginning of period | 97,771,272 | 144,093,533 | |
End of period | $ 68,191,463 | $ 97,771,272 | |
CAPITAL TRANSACTIONS were as follows: | |||
Common Shares at beginning of period | 10,141,521 | 12,671,036 | |
Common Shares issued as reinvestment under the Dividend Reinvestment Plan | 1,726 | 4,692 | |
Common Shares purchased pursuant to a tender offer (a) | — | (2,534,207) | |
Common Shares at end of period | 10,143,247 | 10,141,521 |
(a) | On January 14, 2021, the Fund commenced a tender offer for up to 20% of its outstanding Common Shares for cash at a price per share equal to 98% of the net asset value per share determined as of the close of the regular trading session of the NYSE on February 16, 2021 (the “Valuation Date”). The Fund’s tender offer expired at 5:00 p.m. New York City time on Friday, February 12, 2021. Because the Fund’s tender offer was oversubscribed, the Fund repurchased 2,534,207 (20%) of its outstanding Common Shares on a pro-rata basis based on the number of shares properly tendered. |
Cash flows from operating activities: | ||
Net increase (decrease) in net assets resulting from operations | $(25,690,753) | |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities: | ||
Purchases of investments | (27,208,464) | |
Sales, maturities and paydown of investments | 38,123,764 | |
Net amortization/accretion of premiums/discounts on investments | 8,271 | |
Net realized gain/loss on investments | 6,447,717 | |
Net change in unrealized appreciation/depreciation on investments | 21,441,958 | |
Net change in unrealized appreciation/depreciation on forward foreign currency contracts | (789,784) | |
Changes in assets and liabilities: | ||
Decrease in interest receivable | 824,333 | |
Decrease in interest reclaims receivable | 125,409 | |
Increase in prepaid expenses | (13,951) | |
Increase in due to custodian foreign currency | 738 | |
Increase in interest and fees payable on loans | 31,478 | |
Decrease in due to broker | (8,868) | |
Decrease in investment advisory fees payable | (33,948) | |
Decrease in audit and tax fees payable | (26,966) | |
Increase in legal fees payable | 2,143 | |
Decrease in shareholder reporting fees payable | (8,839) | |
Decrease in administrative fees payable | (3,604) | |
Increase in custodian fees payable | 787 | |
Increase in transfer agent fees payable | 4,667 | |
Decrease in trustees’ fees and expenses payable | (48) | |
Decrease in deferred foreign capital gains tax | (24,062) | |
Increase in other liabilities payable | 656 | |
Cash provided by operating activities | $13,202,634 | |
Cash flows from financing activities: | ||
Proceeds from Common Shares reinvested | 15,965 | |
Distributions to Common Shareholders from investment operations | (3,905,021) | |
Repayment of borrowings | (9,700,000) | |
Effect of exchange rate changes on Euro Loans (a) | (682,747) | |
Cash used in financing activities | (14,271,803) | |
Decrease in cash and foreign currency (b) | (1,069,169) | |
Cash and foreign currency at beginning of period | 2,903,333 | |
Cash and foreign currency at end of period | $1,834,164 | |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest and fees | $203,969 |
(a) | This amount is a component of net change in unrealized appreciation (depreciation) on foreign currency translation as shown on the Statement of Operations. |
(b) | Includes net change in unrealized appreciation (depreciation) on foreign currency of $(239,155), which does not include the effect of exchange rate changes on Euro borrowings. |
Six Months Ended 6/30/2022 (Unaudited) | Year Ended December 31, | |||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||
Net asset value, beginning of period | $ 9.64 | $ 11.37 | $ 11.93 | $ 11.07 | $ 12.94 | $ 12.07 | ||||||
Income from investment operations: | ||||||||||||
Net investment income (loss) | 0.19 | 0.44 | 0.45 | 0.65 | 0.69 | 0.72 | ||||||
Net realized and unrealized gain (loss) | (2.72) | (1.27) (a) | (0.06) | 1.09 | (1.70) | 0.98 | ||||||
Total from investment operations | (2.53) | (0.83) | 0.39 | 1.74 | (1.01) | 1.70 | ||||||
Distributions paid to shareholders from: | ||||||||||||
Net investment income | (0.39) | (0.30) | (0.42) | (0.39) | (0.54) | (0.37) | ||||||
Return of capital | — | (0.65) | (0.54) | (0.49) | (0.34) | (0.53) | ||||||
Total distributions paid to Common Shareholders | (0.39) | (0.95) | (0.96) | (0.88) | (0.88) | (0.90) | ||||||
Common Share repurchases | — | — | 0.01 | 0.00 (b) | 0.02 | — | ||||||
Tender offer purchases | — | 0.05 | — | — | — | 0.07 | ||||||
Net asset value, end of period | $6.72 | $9.64 | $11.37 | $11.93 | $11.07 | $12.94 | ||||||
Market value, end of period | $6.05 | $9.62 | $10.55 | $11.19 | $9.38 | $11.66 | ||||||
Total return based on net asset value (c) | (26.56)% | (6.96)% (a) | 4.84% | 17.09% | (6.85)% | 15.91% | ||||||
Total return based on market value (c) | (33.75)% | 0.07% | 3.71% | 29.74% | (12.42)% | 12.88% | ||||||
Ratios to average net assets/supplemental data: | ||||||||||||
Net assets, end of period (in 000’s) | $ 68,191 | $ 97,771 | $ 144,094 | $ 152,154 | $ 141,376 | $ 167,620 | ||||||
Ratio of total expenses to average net assets | 2.50% (d) | 2.29% | 2.53% | 2.88% | 2.81% | 2.52% | ||||||
Ratio of total expenses to average net assets excluding interest expense | 1.92% (d) | 1.89% | 2.00% | 1.77% | 1.82% | 1.84% | ||||||
Ratio of net investment income (loss) to average net assets | 4.52% (d) | 4.53% | 4.13% | 5.60% | 5.88% | 5.81% | ||||||
Portfolio turnover rate | 24% | 44% | 39% | 42% | 58% | 54% | ||||||
Indebtedness: | ||||||||||||
Total loans outstanding (in 000’s) | $ 31,802 | $ 42,184 | $ 53,514 | $ 60,572 | $ 60,799 | $ 63,309 | ||||||
Asset coverage per $1,000 of indebtedness (e) | $ 3,144 | $ 3,318 | $ 3,693 | $ 3,512 | $ 3,325 | $ 3,648 |
(a) | The Fund received a reimbursement from the sub-advisor in the amount of $4,120 in connection with a trade error, which represents less than $0.01 per share. Since the sub-advisor reimbursed the Fund, there was no effect on the total return. |
(b) | Amount is less than $0.01. |
(c) | Total return is based on the combination of reinvested dividend, capital gain and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan, and changes in net asset value per share for net asset value returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results. |
(d) | Annualized. |
(e) | Calculated by subtracting the Fund’s total liabilities (not including the loans outstanding) from the Fund’s total assets, and dividing by the outstanding loans balance in 000’s. |
1) | benchmark yields; |
2) | reported trades; |
3) | broker/dealer quotes; |
4) | issuer spreads; |
5) | benchmark securities; |
6) | bids and offers; and |
7) | reference data including market research publications. |
1) | the credit conditions in the relevant market and changes thereto; |
2) | the liquidity conditions in the relevant market and changes thereto; |
3) | the interest rate conditions in the relevant market and changes thereto (such as significant changes in interest rates); |
4) | issuer-specific conditions (such as significant credit deterioration); and |
5) | any other market-based data the Advisor’s Pricing Committee considers relevant. In this regard, the Advisor’s Pricing Committee may use last-obtained market-based data to assist it when valuing portfolio securities using amortized cost. |
1) | the fundamental business data relating to the issuer, or economic data relating to the country of issue; |
2) | an evaluation of the forces which influence the market in which these securities are purchased and sold; |
3) | the type, size and cost of the security; |
4) | the financial statements of the issuer, or the financial condition of the country of issue; |
5) | the credit quality and cash flow of the issuer, or country of issue, based on abrdn Inc.’s (“abrdn” or the “Sub-Advisor”) or external analysis; |
6) | the information as to any transactions in or offers for the security; |
7) | the price and extent of public trading in similar securities (or equity securities) of the issuer/borrower, or comparable companies; |
8) | the coupon payments; |
9) | the quality, value and salability of collateral, if any, securing the security; |
10) | the business prospects of the issuer, including any ability to obtain money or resources from a parent or affiliate and an assessment of the issuer’s management (for corporate debt only); |
11) | the economic, political and social prospects/developments of the country of issue and the assessment of the country’s governmental leaders/officials (for sovereign debt only); |
12) | the prospects for the issuer’s industry, and multiples (of earnings and/or cash flows) being paid for similar businesses in that industry (for corporate debt only); and |
13) | other relevant factors. |
• | Level 1 – Level 1 inputs are quoted prices in active markets for identical investments. An active market is a market in which transactions for the investment occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
• | Level 2 – Level 2 inputs are observable inputs, either directly or indirectly, and include the following: |
o | Quoted prices for similar investments in active markets. |
o | Quoted prices for identical or similar investments in markets that are non-active. A non-active market is a market where there are few transactions for the investment, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly. |
o | Inputs other than quoted prices that are observable for the investment (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates). |
o | Inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
• | Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment. |
Security | Acquisition Date | Principal Value/Shares | Current Price | Carrying Cost | Value | % of Net Assets | ||
Kernel Holding S.A., 6.75%, 10/27/27 | 10/20/2020 | $467,000 | $44.81 | $467,000 | $209,258 | 0.31% | ||
NPC Ukrenergo, 6.88%, 11/09/26 | 11/2/2021 | 453,000 | 25.46 | 453,000 | 115,352 | 0.17 | ||
OAS Finance Ltd., 8.88% | 4/18/2013 | 1,550,000 | 0.75 | 1,550,000 | 11,625 | 0.02 | ||
OAS Investments GmbH, 8.25%, 10/19/19 | 10/12/2012 | 460,000 | 0.75 | 460,000 | 3,450 | 0.01 | ||
Sovcombank Via SovCom Capital DAC, 7.75% | 2/19/2020 | 500,000 | 10.00 | 511,643 | 50,000 | 0.07 | ||
$3,441,643 | $389,685 | 0.58% |
Gross Amounts not Offset in the Statement of Assets and Liabilities | |||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Amounts Received | Net Amount | ||||||
Forward Foreign Currency Contracts* | $ 1,186,669 | $ — | $ 1,186,669 | $ (174,830) | $ — | $ 1,011,839 | |||||
Gross Amounts not Offset in the Statement of Assets and Liabilities | |||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Amounts Pledged | Net Amount | ||||||
Forward Foreign Currency Contracts* | $ (180,779) | $ — | $ (180,779) | $ 174,830 | $ — | $ (5,949) |
Distributions paid from: | |
Ordinary income | $3,140,701 |
Capital gains | — |
Return of capital | 6,844,423 |
Undistributed ordinary income | $— |
Undistributed capital gains | — |
Total undistributed earnings | — |
Accumulated capital and other losses | (12,066,501) |
Net unrealized appreciation (depreciation) | (9,440,667) |
Total accumulated earnings (losses) | (21,507,168) |
Other | (76,709) |
Paid-in capital | 119,355,149 |
Total net assets | $97,771,272 |
Tax Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | |||
$126,229,095 | $1,539,750 | $(30,853,782) | $(29,314,032) |
Asset Derivatives | Liability Derivatives | |||||||||
Derivative Instrument | Risk Exposure | Statement of Assets and Liabilities Location | Value | Statement of Assets and Liabilities Location | Value | |||||
Forward foreign currency contracts | Currency Risk | Unrealized appreciation on forward foreign currency contracts | $ 1,186,669 | Unrealized depreciation on forward foreign currency contracts | $ 180,779 |
Statement of Operations Location | |
Currency Risk Exposure | |
Net realized gain (loss) on forward foreign currency contracts | $(550,995) |
Net change in unrealized appreciation (depreciation) on forward foreign currency contracts | 789,784 |
Number of Shares Tendered | Number of Tendered Shares to be Purchased | Pro-Ration Factor | Purchase Price (98% of NAV on Expiration Date) | Number of Outstanding Shares after Tender Offer | ||||
5,450,859 | 2,534,207 | 46.50% | $ 10.7604 | 10,136,829 |
(1) | If Common Shares are trading at or above net asset value (“NAV”) at the time of valuation, the Fund will issue new shares at a price equal to the greater of (i) NAV per Common Share on that date or (ii) 95% of the market price on that date. |
(2) | If Common Shares are trading below NAV at the time of valuation, the Plan Agent will receive the dividend or distribution in cash and will purchase Common Shares in the open market, on the NYSE or elsewhere, for the participants’ accounts. It is possible that the market price for the Common Shares may increase before the Plan Agent has completed its purchases. Therefore, the average purchase price per share paid by the Plan Agent may exceed the market price at the time of valuation, resulting in the purchase of fewer shares than if the dividend or distribution had been paid in Common Shares issued by the Fund. The Plan Agent will use all dividends and distributions received in cash to purchase Common Shares in the open market within 30 days of the valuation date except where temporary curtailment or suspension of purchases is necessary to comply with federal securities laws. Interest will not be paid on any uninvested cash payments. |
• | Interest Rate Risk. Interest rate risk is the risk that securities will decline in value because of changes in market interest rates. For fixed rate securities, when market interest rates rise, the market value of such securities generally will fall. Investments in fixed rate securities with long-term maturities may experience significant price declines if long-term interest rates increase. During periods of rising interest rates, the average life of certain types of securities may be extended because of slower than expected prepayments. This may lock in a below-market yield, increase the security’s duration and further reduce the value of the security. Fixed rate securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. |
• | Issuer Risk. The value of fixed income securities may decline for a number of reasons which directly relate to the issuer, such as management performance, leverage and reduced demand for the issuer’s goods and services. |
• | Prepayment Risk. Prepayment risk is the risk that the issuer of a debt security will repay principal prior to the scheduled maturity date. During periods of declining interest rates, the issuer of a security may exercise its option to prepay principal earlier than scheduled, forcing the Fund to reinvest the proceeds from such prepayment in lower yielding securities, which may result in a decline in the Fund’s income and distributions to common shareholders. |
• | Reinvestment Risk. Reinvestment risk is the risk that income from the Fund’s portfolio will decline if the Fund invests the proceeds from matured, traded or called securities at market interest rates that are below the Fund portfolio’s current earnings rate. Similarly, the yield-to-maturity of a security assumes that all coupons are reinvested at the prevailing rate. If rates fall, the actual yield realized on the security may be lower as the security’s coupons are reinvested at lower yields. |
FUND ACCOUNTANT, AND
CUSTODIAN
PUBLIC ACCOUNTING FIRM
(b) | Not applicable. |
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
(a) | Not applicable. |
(b) | There have been no changes, as of the date of this filing, in any of the portfolio managers identified in response to paragraph (a)(1) of this Item in the registrant’s most recent annual report on Form N-CSR. |
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities For Closed-End Management Investment Companies.
(a) | Not applicable. |
(b) | Not applicable. |
Item 13. Exhibits.
(a)(1) | Not applicable. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) | First Trust/Aberdeen Global Opportunity Income Fund |
By (Signature and Title)* | /s/ James M. Dykas | |
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Date: | September 7, 2022 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ James M. Dykas | |
James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Date: | September 7, 2022 |
By (Signature and Title)* | /s/ Donald P. Swade | |
Donald P. Swade, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
Date: | September 7, 2022 |
* Print the name and title of each signing officer under his or her signature.