UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act file number 811-21636
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First Trust/Aberdeen Global Opportunity Income Fund
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(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
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(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
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(Name and address of agent for service)
Registrant's telephone number, including area code: (630) 765-8000
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Date of fiscal year end: December 31
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Date of reporting period: March 31, 2015
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q 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 the
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. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS. The Schedule(s) of Investments is attached
herewith.
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a)
MARCH 31, 2015 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES - 108.9%
ARGENTINA - 2.0%
4,940,000 Argentina Bonar Bonds (USD).............. 7.00% 04/17/17 $ 4,671,150
-------------
ARMENIA - 0.7%
1,627,000 Republic of Armenia (USD) (b)............ 6.00% 09/30/20 1,598,528
-------------
AUSTRALIA - 4.0%
9,800,000 Treasury Corp. of Victoria (AUD)......... 6.00% 10/17/22 9,301,553
-------------
BAHRAIN - 0.4%
1,050,000 Bahrain Government International Bond
(USD) (b)............................ 6.00% 09/19/44 1,015,875
-------------
BELGIUM - 2.4%
4,135,000 Belgium Government Bond (EUR) (b)........ 4.25% 09/28/21 5,648,764
-------------
BRAZIL - 4.2%
37,200,000 Brazil Notas do Tesouro Nacional, Series
F (BRL).............................. 10.00% 01/01/25 9,832,439
-------------
CANADA - 11.0%
5,000,000 Canadian Government Bond (CAD)........... 8.00% 06/01/23 6,065,966
15,000,000 Province of Manitoba, Canada (NZD)....... 6.38% 09/01/15 11,330,174
10,965,000 Province of Ontario, Canada (NZD)........ 6.25% 06/16/15 8,237,689
-------------
25,633,829
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CHILE - 0.4%
950,000 Empresa Nacional del Petroleo (USD)
(b).................................. 4.38% 10/30/24 968,657
-------------
COLOMBIA - 2.8%
3,122,000,000 Colombia Government International Bond
(COP)................................ 7.75% 04/14/21 1,350,253
10,080,000,000 Colombia Government International Bond
(COP)................................ 9.85% 06/28/27 5,035,212
-------------
6,385,465
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COSTA RICA - 0.5%
1,200,000 Costa Rica Government International Bond
(USD)................................ 4.25% 01/26/23 1,146,000
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CROATIA - 2.1%
3,580,000 Croatia Government International Bond
(USD)................................ 6.63% 07/14/20 3,987,225
749,000 Croatia Government International Bond
(USD)................................ 6.00% 01/26/24 832,798
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4,820,023
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DOMINICAN REPUBLIC - 1.2%
700,000 Dominican Republic International Bond
(USD)................................ 7.50% 05/06/21 786,100
800,000 Dominican Republic International Bond
(USD) (b)............................ 7.45% 04/30/44 906,000
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
MARCH 31, 2015 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED)
DOMINICAN REPUBLIC (CONTINUED)
1,120,000 Dominican Republic International Bond
(USD) (b)............................ 6.85% 01/27/45 $ 1,181,600
-------------
2,873,700
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EGYPT - 2.0%
34,850,000 Egypt Treasury Bills (EGP)............... (c) 04/14/15 4,555,491
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ETHIOPIA - 0.6%
1,350,000 Federal Democratic Republic of Ethiopia
(USD) (b)............................ 6.63% 12/11/24 1,316,250
-------------
GEORGIA - 0.6%
1,300,000 Georgian Oil and Gas Corp. JSC (USD)
(b).................................. 6.88% 05/16/17 1,313,364
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GHANA - 1.3%
1,300,000 Republic of Ghana (USD) (b).............. 8.13% 01/18/26 1,237,379
1,840,000 Republic of Ghana (USD).................. 8.13% 01/18/26 1,751,367
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2,988,746
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HONDURAS - 1.1%
2,360,000 Honduras Government International Bond
(USD) (b)............................ 7.50% 03/15/24 2,531,100
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HUNGARY - 1.0%
539,930,000 Hungary Government Bond (HUF)............ 5.50% 06/24/25 2,297,281
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INDONESIA - 4.2%
1,750,000 Indonesia Government International Bond
(USD) (b)............................ 5.88% 01/15/24 2,027,813
17,100,000,000 Indonesia Treasury Bond (IDR)............ 10.00% 07/15/17 1,391,418
16,000,000,000 Indonesia Treasury Bond (IDR)............ 7.00% 05/15/27 1,176,413
8,500,000,000 Indonesia Treasury Bond (IDR)............ 6.13% 05/15/28 573,319
18,670,000,000 Indonesia Treasury Bond (IDR)............ 10.50% 08/15/30 1,797,129
34,014,000,000 Indonesia Treasury Bond (IDR)............ 8.38% 03/15/34 2,773,570
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9,739,662
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IRAQ - 1.2%
3,360,000 Republic of Iraq (USD)................... 5.80% 01/15/28 2,839,200
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ITALY - 8.7%
4,650,000 Italy Buoni Poliennali Del Tesoro
(EUR)................................ 9.00% 11/01/23 8,214,783
6,800,000 Italy Buoni Poliennali Del Tesoro
(EUR)................................ 7.25% 11/01/26 11,890,605
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20,105,388
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IVORY COAST - 1.3%
900,000 Ivory Coast Government International Bond
(USD) (b)............................ 6.38% 03/03/28 904,500
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
MARCH 31, 2015 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED)
IVORY COAST (CONTINUED)
2,230,000 Ivory Coast Government International Bond
(USD) ............................... 5.75% 12/31/32 $ 2,140,978
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3,045,478
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KAZAKHSTAN - 1.8%
4,440,000 Kazakhstan Government International Bond
(USD) (b)............................ 3.88% 10/14/24 4,124,316
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KENYA - 0.5%
1,180,000 Kenya Government International Bond
(USD)................................ 6.88% 06/24/24 1,238,115
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MEXICO - 5.1%
29,400,000 Mexican Bonos (MXN)...................... 6.50% 06/09/22 2,019,563
20,000,000 Mexican Bonos (MXN)...................... 10.00% 12/05/24 1,706,100
82,110,000 Mexican Bonos (MXN)...................... 8.50% 11/18/38 6,730,582
22,217,566 Mexican Udibonos, Inflation Adjusted Bond
(MXN) (d)............................ 4.50% 11/22/35 1,427,539
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11,883,784
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MONGOLIA - 1.4%
2,130,000 Development Bank of Mongolia LLC (USD)... 5.75% 03/21/17 2,018,175
1,500,000 Mongolia Government International Bond
(USD)................................ 5.13% 12/05/22 1,275,000
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3,293,175
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NEW ZEALAND - 8.0%
18,630,000 New Zealand Government Bond (NZD)........ 6.00% 12/15/17 14,968,763
4,100,000 New Zealand Government Bond (NZD)........ 6.00% 05/15/21 3,548,162
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18,516,925
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PERU - 1.6%
11,325,000 Peruvian Government International Bond
(PEN)................................ 6.95% 08/12/31 3,769,325
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POLAND - 1.0%
4,270,000 Poland Government Bond (PLN)............. 4.00% 10/25/23 1,286,170
2,980,000 Poland Government Bond (PLN)............. 5.75% 04/25/29 1,090,635
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2,376,805
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PORTUGAL - 4.9%
7,830,000 Portugal Obrigacoes do Tesouro OT (EUR)
(b).................................. 5.65% 02/15/24 11,316,633
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ROMANIA - 2.0%
2,680,000 Romanian Government International Bond
(USD)................................ 6.75% 02/07/22 3,252,850
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
MARCH 31, 2015 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED)
ROMANIA (CONTINUED)
1,030,000 Romanian Government International Bond
(USD) (b)............................ 6.13% 01/22/44 $ 1,312,426
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4,565,276
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RUSSIA - 5.9%
854,535,000 Russian Federal Bond - OFZ (RUB)......... 7.05% 01/19/28 10,314,619
1,200,000 Russian Foreign Bond - Eurobond (USD).... 4.88% 09/16/23 1,160,640
2,500,000 Vnesheconombank Via VEB Finance PLC
(USD)................................ 6.90% 07/09/20 2,312,500
-------------
13,787,759
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RWANDA - 0.8%
510,000 Rwanda International Government Bond
(USD) (b)............................ 6.63% 05/02/23 515,100
1,440,000 Rwanda International Government Bond
(USD)................................ 6.63% 05/02/23 1,454,400
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1,969,500
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SENEGAL - 0.4%
870,000 Senegal Government International Bond
(USD)................................ 8.75% 05/13/21 980,490
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SERBIA - 0.9%
2,020,000 Republic of Serbia (USD)................. 5.25% 11/21/17 2,104,537
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SOUTH AFRICA - 5.0%
680,000 Eskom Holdings SOC Ltd. (USD) (b)........ 6.75% 08/06/23 680,136
1,800,000 Eskom Holdings SOC Ltd. (USD)............ 6.75% 08/06/23 1,800,360
54,930,000 South Africa Government Bond (ZAR)....... 10.50% 12/21/26 5,482,584
45,310,000 South Africa Government Bond (ZAR)....... 8.00% 01/31/30 3,687,671
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11,650,751
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SPAIN - 2.6%
3,300,000 Spain Government Bond (EUR) (b).......... 5.15% 10/31/44 6,043,412
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TANZANIA - 0.9%
2,000,000 Tanzania Government International Bond
(USD) (e)............................ 6.40% 03/09/20 2,075,000
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TUNISIA - 0.9%
2,100,000 Banque Centrale de Tunisie SA (USD)
(b).................................. 5.75% 01/30/25 2,126,250
-------------
TURKEY - 4.9%
6,600,000 Turkey Government Bond (TRY)............. 6.30% 02/14/18 2,414,510
13,870,000 Turkey Government Bond (TRY)............. 10.40% 03/20/24 6,044,125
4,950,168 Turkey Government Bond, Inflation
Adjusted Bond (TRY) (d).............. 3.00% 02/23/22 1,782,080
1,000,000 Turkey Government International Bond
(USD)................................ 6.25% 09/26/22 1,140,000
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11,380,715
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See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
MARCH 31, 2015 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED)
UNITED ARAB EMIRATES - 1.1%
1,990,000 Emirate of Dubai Government International
Bonds (USD).......................... 7.75% 10/05/20 $ 2,473,670
-------------
UNITED KINGDOM - 2.0%
2,170,000 United Kingdom Gilt (GBP)................ 4.25% 12/07/49 4,723,332
-------------
URUGUAY - 1.7%
655,000 Uruguay Government International Bond
(USD)................................ 7.63% 03/21/36 930,100
76,067,627 Uruguay Government International Bond,
Inflation Adjusted Bond (UYU) (d).... 5.00% 09/14/18 2,991,443
-------------
3,921,543
-------------
VENEZUELA - 0.9%
4,640,000 Venezuela Government International Bond
(USD)................................ 12.75% 08/23/22 2,053,200
-------------
ZAMBIA - 0.9%
1,960,000 Zambia Government International Bond
(USD) (b)............................ 8.50% 04/14/24 2,081,275
-------------
TOTAL FOREIGN SOVEREIGN BONDS AND NOTES................................... 253,083,731
(Cost $270,997,346) -------------
FOREIGN CORPORATE BONDS AND NOTES (f) - 24.3%
BANGLADESH - 0.4%
1,000,000 Banglalink Digital Communications Ltd.
(USD) (b)............................ 8.63% 05/06/19 1,030,000
-------------
BRAZIL - 1.2%
1,550,000 OAS Finance Ltd. (USD) (b) (g) (i) (j)... 8.88% (h) 232,500
460,000 OAS Investments GmbH (USD) (b) (i) (j)... 8.25% 10/19/19 70,150
1,504,000 Petrobras Global Finance BV (USD)........ 7.25% 03/17/44 1,419,746
1,171,165 QGOG Atlantic/Alaskan Rigs Ltd. (USD).... 5.25% 07/30/18 1,020,085
-------------
2,742,481
-------------
CANADA - 0.8%
2,350,000 Uranium One Investments, Inc. (USD)
(b).................................. 6.25% 12/13/18 1,880,470
-------------
CHILE - 0.5%
1,240,000 SACI Falabella (USD) .................... 3.75% 04/30/23 1,243,675
-------------
COLOMBIA - 0.5%
1,790,000 Pacific Rubiales Energy Corp. (USD)
(b).................................. 5.38% 01/26/19 1,185,875
-------------
DOMINICAN REPUBLIC - 0.6%
1,350,000 AES Andres Dominicana, Ltd. / Itabo
Dominicana, Ltd. (USD)............... 9.50% 11/12/20 1,410,750
-------------
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
MARCH 31, 2015 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN CORPORATE BONDS AND NOTES (f) (CONTINUED)
EL SALVADOR - 0.4%
921,000 Telemovil Finance Co., Ltd. (USD)........ 8.00% 10/01/17 $ 962,445
-------------
GUATEMALA - 1.2%
980,000 Comcel Trust via Comunicaciones Celulares
SA (USD) (b)......................... 6.88% 02/06/24 1,046,640
1,550,000 Industrial Subordinated Trust (USD)...... 8.25% 07/27/21 1,681,750
-------------
2,728,390
-------------
INDONESIA - 1.0%
1,600,000 Pertamina Persero PT (USD) (b)........... 4.30% 05/20/23 1,612,000
822,000 Pertamina Persero PT (USD)............... 6.00% 05/03/42 834,741
-------------
2,446,741
-------------
KAZAKHSTAN - 0.6%
1,500,000 Zhaikmunai LLP (USD) (b)................. 7.13% 11/13/19 1,301,250
-------------
MEXICO - 2.0%
1,050,000 Alfa SAB de CV (USD)..................... 6.88% 03/25/44 1,158,150
1,400,000 BBVA Bancomer S.A. (USD) (b)............. 6.75% 09/30/22 1,586,480
850,000 CEMEX Espana S.A. (USD).................. 9.88% 04/30/19 949,875
460,000 Cemex Finance, LLC (USD) (b)............. 9.38% 10/12/22 524,400
350,000 Sixsigma Networks Mexico S.A. de CV (USD)
(b).................................. 8.25% 11/07/21 367,500
-------------
4,586,405
-------------
MOZAMBIQUE - 1.1%
2,550,000 EMATUM Via Mozambique EMATUM Finance 2020
BV (USD)............................. 6.31% 09/11/20 2,461,388
-------------
NIGERIA - 0.7%
1,200,000 Diamond Bank PLC (USD) (b)............... 8.75% 05/21/19 972,576
650,000 Zenith Bank PLC (USD) (b)................ 6.25% 04/22/19 599,625
-------------
1,572,201
-------------
PARAGUAY - 0.9%
1,900,000 Banco Regional SAECA (USD) (b)........... 8.13% 01/24/19 2,021,220
-------------
PERU - 0.6%
625,000 InRetail Consumer (USD) (b).............. 5.25% 10/10/21 640,625
730,000 Union Andina de Cementos SAA (USD)....... 5.88% 10/30/21 739,855
-------------
1,380,480
-------------
RUSSIA - 2.9%
1,150,000 Alfa Bank OJSC Via Alfa Bond Issuance PLC
(USD)................................ 7.75% 04/28/21 1,134,521
950,000 Evraz Group S.A. (USD) (b)............... 6.50% 04/22/20 843,600
1,350,000 Lukoil International Finance BV (USD).... 4.56% 04/24/23 1,146,420
1,450,000 Rosneft Oil Co. Via Rosneft International
Finance Ltd. (USD)................... 4.20% 03/06/22 1,150,938
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
MARCH 31, 2015 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN CORPORATE BONDS AND NOTES (f) (CONTINUED)
RUSSIA (CONTINUED)
1,170,000 Sberbank of Russia Via SB Capital SA
(USD)................................ 6.13% 02/07/22 $ 1,095,377
1,350,000 Vimpel Communications Via VIP Finance
Ireland Ltd., OJSC (USD)............. 7.75% 02/02/21 1,341,495
-------------
6,712,351
-------------
SUPRANATIONALS - 5.9%
17,600,000 Asian Development Bank (AUD)............. 5.50% 02/15/16 13,802,816
-------------
TURKEY - 0.8%
750,000 Arcelik AS (USD) (b)..................... 5.00% 04/03/23 719,625
1,150,000 Yasar Holdings AS (USD) (b).............. 8.88% 05/06/20 1,201,750
-------------
1,921,375
-------------
UNITED ARAB EMIRATES - 1.1%
2,270,000 Jafz Sukuk Ltd. (USD).................... 7.00% 06/19/19 2,599,150
-------------
VENEZUELA - 1.1%
3,870,000 Petroleos de Venezuela S.A. (USD)........ 8.50% 11/02/17 2,563,875
-------------
TOTAL FOREIGN CORPORATE BONDS AND NOTES .................................. 56,553,338
(Cost $58,982,509) -------------
TOTAL INVESTMENTS - 133.2% ............................................... 309,637,069
(Cost $329,979,855) (k)
OUTSTANDING LOANS - (41.3%) .............................................. (96,134,191)
NET OTHER ASSETS AND LIABILITIES - 8.1% .................................. 18,878,747
-------------
NET ASSETS - 100.0% ...................................................... $ 232,381,625
=============
--------------------------------------------------------------------------------
(a) All of the securities within the Portfolio of Investments are
available to serve as collateral for the outstanding loans.
(b) This security, sold within the terms of a private placement
memorandum, is exempt from registration under Rule 144A under the
Securities Act of 1933, as amended, 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 Aberdeen Asset Management
Inc., the Fund's investment 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 March
31, 2015, securities noted as such amounted to $66,685,664 or 28.70%
of net assets.
(c) Zero coupon bond.
(d) Security whose principal value is adjusted in accordance with changes
to the country's Consumer Price Index. Interest is calculated on the
basis of the current adjusted principal value.
(e) Floating rate security. The interest rate shown reflects the rate in
effect at March 31, 2015.
(f) Portfolio securities are included in a country based upon their
underlying credit exposure as determined by the Fund's investment
sub-advisor.
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
MARCH 31, 2015 (UNAUDITED)
(g) Fixed-to-floating or fixed-to-variable rate security. The interest
rate shown reflects the fixed rate in effect at March 31, 2015. At a
predetermined date, the fixed rate will change to a floating rate or a
variable rate.
(h) Perpetual maturity.
(i) This issuer is in default and interest is not being accrued by the
Fund.
(j) This company has filed for protection in a Sao Paulo state court.
(k) Aggregate cost for financial reporting purposes, which approximates
the aggregate cost for federal income tax purposes. As of March 31,
2015, the aggregate gross unrealized appreciation for all securities
in which there was an excess of value over tax cost was $10,472,608
and the aggregate gross unrealized depreciation for all securities in
which there was an excess of tax cost over value was $30,815,394.
--------------------------------------------------------------------------------
Currency Abbreviations:
AUD Australian Dollar
BRL Brazilian Real
CAD Canadian Dollar
COP Colombian Peso
EGP Egyptian Pound
EUR Euro
GBP British Pound Sterling
HUF Hungarian Forint
IDR Indonesian Rupiah
INR Indian Rupee
MXN Mexican Peso
NZD New Zealand Dollar
PEN Peruvian New Sol
PLN Polish Zloty
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2015 (UNAUDITED)
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of March 31,
2015 is as follows (see Note 2A - Portfolio Valuation in the Notes to Portfolio
of Investments):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
3/31/2015 PRICES INPUTS INPUTS
---------------------------------------------- --------------- ------------- --------------- --------------
Foreign Sovereign Bonds and Notes*............ $ 253,083,731 $ -- $ 253,083,731 $ --
Foreign Corporate Bonds and Notes*............ 56,553,338 -- 56,553,338 --
--------------- ------------- --------------- --------------
Total Investments............................. 309,637,069 -- 309,637,069 --
--------------- ------------- --------------- --------------
Forward Foreign Currency Contracts**.......... 3,935,321 -- 3,935,321 --
--------------- ------------- --------------- --------------
Total......................................... $ 313,572,390 $ -- $ 313,572,390 $ --
=============== ============= =============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
3/31/2015 PRICES INPUTS INPUTS
--------------- ------------- --------------- --------------
Forward Foreign Currency Contracts**.......... $ (199,543) $ -- $ (199,543) $ --
=============== ============= =============== ==============
* See Portfolio of Investments for country breakout.
** See the Forward Foreign Currency Contracts table for contract and currency
detail.
All transfers in and out of the Levels during the period are assumed to be
transferred on the last day of the period at their current value. There were no
transfers between levels at March 31, 2015.
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2015 (UNAUDITED)
% OF TOTAL CURRENCY EXPOSURE % OF TOTAL
INDUSTRY CLASSIFICATION INVESTMENTS DIVERSIFICATION INVESTMENTS +
-------------------------------------------------------------- ----------------------------------------
Sovereigns 68.8% USD 58.7%
Government Regional 9.3 EUR 9.5
Supranationals 4.5 RUB 3.3
Banks 3.2 MXN 3.2
Integrated Oils 2.0 BRL 3.2
Government Agencies 1.6 AUD 3.0
Wireless Telecommunications Services 1.1 ZAR 3.0
Financial Services 1.0 IDR 2.5
Real Estate 0.8 CAD 2.0
Exploration & Production 0.8 TRY 1.8
Consumer Services 0.8 GBP 1.5
Government Development Banks 0.8 EGP 1.5
Construction Materials Manufacturing 0.7 INR 1.3
Central Bank 0.7 PEN 1.2
Power Generation 0.5 NZD 1.0
Pipeline 0.4 UYU 1.0
Department Stores 0.4 COP 0.8
Chemicals 0.4 PLN 0.8
Consumer Finance 0.4 HUF 0.7
Wireline Telecommunications Services 0.3 ----------------------------------------
Oil & Gas Services & Equipment 0.3 Total 100.0%
Refining & Marketing 0.3 =======
Metals & Mining 0.3
Home Improvement 0.2
Supermarkets & Pharmacies 0.2
Software & Services 0.1
Industrial Other 0.1
--------------------------------------------------------------
Total 100.0%
=======
+ The weightings include the impact of currency forwards.
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2015 (UNAUDITED)
% OF TOTAL
CREDIT QUALITY(1) INVESTMENTS
------------------------------------------------------
AAA 15.4%
AA+ 5.2
AA 4.5
A 4.9
A- 1.2
BBB+ 16.3
BBB 6.9
BBB- 13.1
BB+ 10.0
BB 1.1
BB- 4.3
B+ 8.5
B 5.3
CCC 1.5
C 0.1
NR 1.7
----------------------------------------------------
Total 100.0%
=======
(1) The credit quality and ratings information presented above reflect the
ratings assigned by one or more nationally recognized statistical rating
organizations (NRSROs), including Standard & Poor's Ratings Group, a
division of the McGraw-Hill Companies, 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. 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.
See Notes to Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2015 (UNAUDITED)
FORWARD FOREIGN CURRENCY CONTRACTS (see Note 2C - Forward Foreign Currency
Contracts in the Notes to Portfolio of Investments).
FORWARD FOREIGN CURRENCY CONTRACTS
---------------------------------------------------------
PURCHASE SALE UNREALIZED
SETTLEMENT AMOUNT AMOUNT VALUE AS OF VALUE AS OF APPRECIATION/
DATE COUNTERPARTY PURCHASED ++ SOLD ++ MARCH 31, 2015 MARCH 31, 2015 (DEPRECIATION)
---------- -------------- -------------------- ------------------ --------------- --------------- --------------
04/16/15 BAR AUD 778,000 USD 612,041 $ 591,984 $ 612,041 $ (20,057)
04/16/15 DB CAD 200,000 USD 161,068 157,878 161,068 (3,190)
04/16/15 BAR EUR 1,229,000 USD 1,376,903 1,321,773 1,376,903 (55,130)
05/29/15 JPM INR 432,480,000 USD 6,886,624 6,820,447 6,886,624 (66,177)
04/16/15 DB NZD 4,918,000 USD 3,708,113 3,670,628 3,708,113 (37,485)
04/16/15 JPM NZD 902,000 USD 678,579 673,222 678,579 (5,357)
04/16/15 JPM NZD 478,000 USD 347,037 356,763 347,037 9,726
04/16/15 JPM ZAR 2,303,000 USD 197,297 189,346 197,297 (7,951)
04/16/15 UBS USD 14,459,246 AUD 17,842,000 14,459,246 13,576,074 883,172
05/29/15 CIT USD 4,057,000 COP 10,588,769,000 4,057,000 4,042,779 14,221
04/16/15 DB USD 11,250,758 EUR 9,538,000 11,250,758 10,257,988 992,770
05/27/15 JPM USD 3,700,247 EUR 3,306,000 3,700,247 3,557,514 142,733
05/29/15 CIT USD 2,769,589 INR 175,038,000 2,769,589 2,760,445 9,144
04/16/15 BAR USD 1,841,305 MXN 27,139,000 1,841,305 1,777,259 64,046
04/16/15 GS USD 39,738,931 NZD 51,484,000 39,738,931 38,425,902 1,313,029
04/16/15 JPM USD 4,705,871 TRY 10,965,000 4,705,871 4,199,391 506,480
04/16/15 CIT USD 185,150 ZAR 2,303,000 185,150 189,346 (4,196)
--------------
Net Unrealized Appreciation (Depreciation)............................................................ $ 3,735,778
==============
++ Please see Portfolio of Investments for currency descriptions.
Counterparty Abbreviations:
BAR Barclays Bank
DB Deutsche Bank
CIT Citibank, NA
GS Goldman Sachs
JPM JPMorgan Chase
UBS UBS
See Notes to Portfolio of Investments
NOTES TO PORTFOLIO OF INVESTMENTS
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
MARCH 31, 2015 (UNAUDITED)
1. ORGANIZATION
First Trust/Aberdeen Global Opportunity Income Fund (the "Fund") is a
diversified, closed-end management investment company organized as a
Massachusetts business trust on September 2, 2004, and is registered with the
Securities and Exchange Commission under the Investment Company Act of 1940, as
amended (the "1940 Act"). The Fund trades under the ticker symbol FAM on the New
York Stock Exchange ("NYSE").
2. VALUATION AND INVESTMENT PRACTICES
A. PORTFOLIO VALUATION:
The net asset value ("NAV") of the Common Shares of the Fund is determined daily
as of the close of regular trading on the NYSE, normally 4:00 p.m. Eastern time,
on each day the NYSE is open for trading. If the NYSE closes early on a
valuation day, the NAV is determined as of that time. Domestic debt securities
and foreign securities are priced using data reflecting the earlier closing of
the principal markets for those securities. The NAV per Common Share is
calculated by dividing the value of all assets of the Fund (including accrued
interest and dividends), less all liabilities (including accrued expenses,
dividends declared but unpaid and any borrowings of the Fund), by the total
number of Common Shares outstanding.
The Fund's investments are valued daily at market value or, in absence of market
value with respect to any portfolio securities, at fair value. Market value
prices represent last sale or official closing prices from a national or foreign
exchange (i.e. a regulated market) and are primarily obtained from third party
pricing services. Fair value prices represent any prices not considered market
value prices and are either obtained from a third party pricing service or are
determined by the Pricing Committee of the Fund's investment advisor, First
Trust Advisors L.P. ("First Trust" or the "Advisor"), in accordance with
valuation procedures adopted by the Fund's Board of Trustees, and in accordance
with provisions of the 1940 Act. Investments valued by the Advisor's Pricing
Committee, if any, are footnoted as such in the footnotes to the Portfolio of
Investments. The Fund's investments are valued as follows:
Bonds, notes and other debt securities are fair valued on the basis of
valuations provided by dealers who make markets in such securities or by an
independent pricing service approved by the Fund's Board of Trustees, which
may use the following valuation inputs when available:
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.
Fixed income and other debt securities having a remaining maturity of 60 days
or less when purchased are fair valued at cost adjusted for amortization of
premiums and accretion of discounts (amortized cost), provided the Advisor's
Pricing Committee has determined that the use of amortized cost is an
appropriate reflection of fair value given market and issuer-specific
conditions existing at the time of the determination. Factors that may be
considered in determining the appropriateness of the use of amortized cost
include, but are not limited to, the following:
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.
Common stocks and other equity securities listed on any national or foreign
exchange (excluding The NASDAQ(R) Stock Market LLC ("NASDAQ") and the London
Stock Exchange Alternative Investment Market ("AIM")) are valued at the last
sale price on the exchange on which they are principally traded or, for NASDAQ
and AIM securities, the official closing price. Securities traded on more than
one securities exchange are valued at the last sale price or official closing
price, as applicable, at the close of the securities exchange representing the
principal market for such securities.
Securities traded in an over-the-counter market are fair valued at the mean of
their most recent bid and asked price, if available, and otherwise at their
closing bid price.
Forward foreign currency contracts are fair valued at the current day's
interpolated foreign exchange rate, as calculated using the current day's spot
rate, and the thirty, sixty, ninety, and one-hundred eighty day forward rates
provided by an independent pricing service.
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
SEPTEMBER 30, 2014 (UNAUDITED)
Certain securities may not be able to be priced by pre-established pricing
methods. Such securities may be valued by the Fund's Board of Trustees or
its delegate, the Advisor's Pricing Committee, at fair value. These
securities generally include, but are not limited to, restricted
securities (securities which may not be publicly sold without registration
under the Securities Act of 1933, as amended) for which a pricing service
is unable to provide a market price; securities whose trading has been
formally suspended; a security whose market or fair value price is not
available from a pre-established pricing source; a security with respect
to which an event has occurred that is likely to materially affect the
value of the security after the market has closed but before the
calculation of the Fund's NAV or make it difficult or impossible to obtain
a reliable market quotation; and a security whose price, as provided by
the pricing service, does not reflect the security's fair value. As a
general principle, the current fair value of a security would appear to be
the amount which the owner might reasonably expect to receive for the
security upon its current sale. When fair value prices are used, generally
they will differ from market quotations or official closing prices on the
applicable exchanges. A variety of factors may be considered in
determining the fair value of such securities, including, but not limited
to, the following:
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 the sub-advisor's 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.
The Fund is subject to fair value accounting standards that define fair value,
establish the framework for measuring fair value and provide a three-level
hierarchy for fair valuation based upon the inputs to the valuation as of the
measurement date. The three levels of the fair value hierarchy are as follows:
o 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.
o 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.
o 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.
The inputs or methodologies used for valuing investments are not necessarily an
indication of the risk associated with investing in those investments. A summary
of the inputs used to value the Fund's investments as of March 31, 2015, is
included with the Fund's Portfolio of Investments.
B. SECURITIES TRANSACTIONS:
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
NOTES TO PORTFOLIO OF INVESTMENTS (CONTINUED)
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
SEPTEMBER 30, 2014 (UNAUDITED)
Securities purchased or sold on a when-issued, delayed-delivery or forward
purchase commitment basis may have extended settlement periods. The value of the
security so purchased is subject to market fluctuations during this period. The
Fund maintains liquid assets with a current value at least equal to the amount
of its when-issued, delayed-delivery or forward purchase commitments until
payment is made. At March 31, 2015, the Fund had no when-issued,
delayed-delivery or forward purchase commitments.
C. FORWARD FOREIGN CURRENCY CONTRACTS:
The Fund is subject to foreign currency risk in the normal course of pursuing
its investment objectives. Forward foreign currency contracts are agreements to
exchange one currency for another at a future date and at a specified price. The
Fund uses forward foreign currency contracts to facilitate transactions in
foreign securities and to manage the Fund's foreign currency exposure. These
contracts are valued daily, and the Fund's net equity therein, representing
unrealized gain or loss on the contracts as measured by the difference between
the forward foreign exchange rates at the dates of entry into the contracts and
the forward rates at the reporting date, is included on the Forward Foreign
Currency Contracts table in the Portfolio of Investments. Risks arise from the
possible inability of counterparties to meet the terms of their contracts and
from movement in currency, securities values and interest rates. Due to the
risks, the Fund could incur losses in excess of the net unrealized value shown
on the Forward Foreign Currency Contracts table in the Portfolio of Investments.
In the event of default by the Counterparty, the Fund will provide notice to the
Counterparty of the Fund's intent to convert the currency held by the Fund into
the currency that the Counterparty agreed to exchange with the Fund. If a
Counterparty becomes bankrupt or otherwise fails to perform its obligations due
to financial difficulties, the Fund may experience significant delays in
obtaining any recovery in a bankruptcy or other reorganization proceeding. The
Fund may obtain only limited recovery or may obtain no recovery in such
circumstances.
D. FOREIGN CURRENCY:
The books and records of the Fund are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at the exchange rates prevailing at the end of the period.
Purchases and sales of investment securities and items of income and expense are
translated on the respective dates of such transactions. Net realized foreign
currency gains and losses include the effect of changes in exchange rates
between trade date and settlement date on investment security transactions,
foreign currency transactions and interest and dividends received.
3. DERIVATIVES TRANSACTIONS
For the fiscal year-to-date period (January 1, 2015 through March 31, 2015),
notional values of forward foreign currency contracts opened and closed were
$194,742,072 and $169,271,157, respectively.
ITEM 2. 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 registrant's last fiscal quarter
that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 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/ Mark R. Bradley
----------------------------------------
Mark R. Bradley, President and
Chief Executive Officer
(principal executive officer)
Date: May 20, 2015
--------------------
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/ Mark R. Bradley
----------------------------------------
Mark R. Bradley, President and
Chief Executive Officer
(principal executive officer)
Date: May 20, 2015
--------------------
By (Signature and Title)* /s/ James M. Dykas
----------------------------------------
James M. Dykas, Treasurer,
Chief Financial Officer and
Chief Accounting Officer
(principal financial officer)
Date: May 20, 2015
--------------------
* Print the name and title of each signing officer under his or her signature.