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
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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: June 30, 2015
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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. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
FIRST TRUST
SEMI-ANNUAL REPORT
FOR THE SIX MONTHS ENDED
JUNE 30, 2015
FIRST TRUST/ABERDEEN
GLOBAL OPPORTUNITY
INCOME FUND
(FAM)
ABERDEEN
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TABLE OF CONTENTS
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FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
SEMI-ANNUAL REPORT
JUNE 30, 2015
Shareholder Letter.......................................................... 1
At a Glance................................................................. 2
Portfolio Commentary........................................................ 3
Portfolio of Investments.................................................... 7
Statement of Assets and Liabilities......................................... 15
Statement of Operations..................................................... 16
Statements of Changes in Net Assets......................................... 17
Statement of Cash Flows..................................................... 18
Financial Highlights........................................................ 19
Notes to Financial Statements............................................... 20
Additional Information...................................................... 26
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This report contains certain forward-looking statements within the meaning of
the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934,
as amended. Forward-looking statements include statements regarding the goals,
beliefs, plans or current expectations of First Trust Advisors L.P. ("First
Trust" or the "Advisor") and/or Aberdeen Asset Management Inc. ("Aberdeen" or
the "Sub-Advisor") and their respective representatives, taking into account the
information currently available to them. Forward-looking statements include all
statements that do not relate solely to current or historical fact. For example,
forward-looking statements include the use of words such as "anticipate,"
"estimate," "intend," "expect," "believe," "plan," "may," "should," "would" or
other words that convey uncertainty of future events or outcomes.
Forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements of
the First Trust/Aberdeen Global Opportunity Income Fund (the "Fund") to be
materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. When evaluating the
information included in this report, you are cautioned not to place undue
reliance on these forward-looking statements, which reflect the judgment of the
Advisor and/or the Sub-Advisor and their respective representatives only as of
the date hereof. We undertake no obligation to publicly revise or update these
forward-looking statements to reflect events and circumstances that arise after
the date hereof.
PERFORMANCE AND RISK DISCLOSURE
There is no assurance that the Fund will achieve its investment objectives. The
Fund is subject to market risk, which is the possibility that the market values
of securities owned by the Fund will decline and that the value of the Fund
shares may therefore be less than what you paid for them. Accordingly, you can
lose money by investing in the Fund. See "Risk Considerations" in the Additional
Information section of this report for a discussion of certain other material
risks of investing in the Fund.
Performance data quoted represents past performance, which is no guarantee of
future results, and current performance may be lower or higher than the figures
shown. For the most recent month-end performance figures, please visit
http://www.ftportfolios.com or speak with your financial advisor. Investment
returns, net asset value and common share price will fluctuate and Fund shares,
when sold, may be worth more or less than their original cost.
The Advisor may also periodically provide additional information on Fund
performance on the Fund's webpage at http://www.ftportfolios.com.
HOW TO READ THIS REPORT
This report contains information that may help you evaluate your investment in
the Fund. It includes details about the Fund and presents data and analysis that
provide insight into the Fund's performance and investment approach.
By reading the portfolio commentary by the portfolio management team of the
Fund, you may obtain an understanding of how the market environment affected the
Fund's performance. The statistical information that follows may help you
understand the Fund's performance compared to that of relevant market
benchmarks.
It is important to keep in mind that the opinions expressed by personnel of
Aberdeen are just that: informed opinions. They should not be considered to be
promises or advice. The opinions, like the statistics, cover the period through
the date on the cover of this report. The material risks of investing in the
Fund are spelled out in the prospectus, the statement of additional information,
this report and other Fund regulatory filings.
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SHAREHOLDER LETTER
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FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
SEMI-ANNUAL LETTER FROM THE CHAIRMAN AND CEO
JUNE 30, 2015
Dear Shareholders:
Thank you for your investment in First Trust /Aberdeen Global Opportunity Income
Fund (the "Fund").
First Trust Advisors L.P. ("First Trust") is pleased to provide you with this
semi-annual report which contains detailed information about your investment for
the six months ended June 30, 2015, including a portfolio commentary from the
Fund's management team, a performance analysis and a market and Fund outlook.
Additionally, First Trust has compiled the Fund's financial statements for you
to review. We encourage you to read this report and discuss it with your
financial advisor.
U.S. markets, fueled by accelerating growth and an accommodating Federal
Reserve, enjoyed a prosperous year in 2014. However, for the six months covered
by this report, some economic and global factors, including the continued
conflict in the Middle East and a sharp decline in oil prices, created
volatility in the U.S. and global markets. Another factor that has impacted
markets is the fact that many economists are predicting the Federal Reserve will
begin to raise interest rates this year.
As I have written previously, First Trust believes investors should maintain
perspective about the markets and have realistic expectations about their
investments. Markets will always go up and down, but we believe that having a
long-term investment horizon and being invested in quality products can help you
reach your goals.
Thank you for giving First Trust the opportunity to be a part of your investment
plan. We value the relationship and will continue to focus on our disciplined
investment approach and long-term perspective to help investors reach their
financial goals.
Sincerely,
/s/ James A. Bowen
James A. Bowen
Chairman of the Board of Trustees
Chief Executive Officer of First Trust Advisors L.P.
Page 1
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
"AT A GLANCE"
AS OF JUNE 30, 2015 (UNAUDITED)
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FUND STATISTICS
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Symbol on New York Stock Exchange FAM
Common Share Price $10.92
Common Share Net Asset Value ("NAV") $12.93
Premium (Discount) to NAV (15.55)%
Net Assets Applicable to Common Shares $225,069,294
Current Monthly Distribution per Common Share (1) $0.090
Current Annualized Distribution per Common Share $1.080
Current Distribution Rate on Closing Common Share Price (2) 9.89%
Current Distribution Rate on NAV (2) 8.35%
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COMMON SHARE PRICE & NAV (WEEKLY CLOSING PRICE)
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Common Share Price NAV
6/14 $14.71 $15.86
14.37 15.73
14.45 15.81
14.45 15.80
7/14 14.63 15.82
14.15 15.48
14.07 15.38
14.26 15.58
14.31 15.51
8/14 14.42 15.61
14.34 15.48
13.98 15.13
13.98 15.08
9/14 13.92 14.97
13.39 14.67
13.43 14.81
13.24 14.77
13.50 14.76
10/14 13.40 14.82
12.97 14.47
12.94 14.48
12.98 14.57
11/14 13.03 14.54
12.48 14.15
11.91 13.70
11.97 13.73
12/14 12.01 13.81
11.98 13.65
11.98 13.60
11.99 13.60
12.02 13.73
1/15 12.05 13.58
11.94 13.54
11.85 13.54
11.89 13.54
2/15 12.00 13.63
11.65 13.27
11.45 13.02
11.49 13.28
3/15 11.66 13.37
11.55 13.41
11.63 13.59
11.67 13.60
4/15 11.71 13.64
11.73 13.51
11.59 13.51
11.67 13.61
11.67 13.46
5/15 11.59 13.31
11.20 12.94
11.03 12.97
11.03 12.97
10.94 13.01
6/15 10.92 12.93
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PERFORMANCE
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Average Annual Total Return
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6 Months Ended 1 Year Ended 5 Years Ended 10 Years Ended Inception (11/23/04)
6/30/15 6/30/15 6/30/15 6/30/15 to 6/30/15
FUND PERFORMANCE (3)
NAV -1.15% -9.87% 4.43% 6.35% 6.31%
Market Value -4.52% -17.76% 1.82% 5.09% 4.18%
INDEX PERFORMANCE
Blended Index(4) -2.01% -8.57% 3.09% 5.28% 5.20%
Barclays Global Emerging Markets Index 1.49% -2.27% 6.57% 7.17% 7.51%
Barclays Global Aggregate Index -3.08% -7.09% 2.07% 3.54% 3.29%
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% OF TOTAL
TOP 10 HOLDINGS INVESTMENTS
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Brazil Notas Do Tesouro Nacional,
Series F, 10.00%, 1/1/25 4.8%
Asian Development Bank, 5.50%, 2/15/16 4.6
New Zealand Government Bond, 6.00%, 12/15/17 4.5
Italy Buoni Poliennali Del Tesoro, 7.25%,
11/1/26 3.7
Portugal Obrigacoes do Tesouro OT, 5.65%,
2/15/24 3.6
Province of Manitoba, Canada, 6.38%, 9/1/15 3.4
Treasury Corp. of Victoria, 6.00%, 10/17/22 3.0
Russian Federal Bond - OFZ, 7.05%, 1/19/28 2.9
Italy Buoni Poliennali Del Tesoro, 9.00%,
11/1/23 2.6
Argentina Bonar Bonds, 7.00%, 4/17/17 2.2
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Total 35.3%
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% OF TOTAL
CREDIT QUALITY(6) INVESTMENTS
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AAA 15.2%
AA+ 5.0
A 4.9
BBB+ 19.0
BBB 7.2
BBB- 10.3
BB+ 11.2
BB 1.7
BB- 7.4
B+ 8.9
B 4.7
CCC 0.6
Not Rated 3.9
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Total 100.0%
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% OF TOTAL
TOP 10 COUNTRIES(5) INVESTMENTS
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Turkey 6.6%
Italy 6.3
Brazil 6.0
Mexico 5.7
New Zealand 5.6
Russia 5.5
Canada 5.4
Multinational 4.6
Spain 3.7
Portugal 3.6
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Total 53.0%
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% OF TOTAL
INDUSTRY CLASSIFICATION INVESTMENTS
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Sovereigns 71.0%
Government Regional 6.4
Supranationals 4.6
Banks 3.6
Real Estate 1.6
Government Agencies 1.4
Metals & Mining 1.0
Integrated Oils 1.0
Exploration & Production 1.0
Wireless Telecommunications Services 0.8
Consumer Services 0.8
Financial Services 0.8
Construction Materials Manufacturing 0.7
Central Bank 0.7
Oil & Gas Services & Equipment 0.6
Software & Services 0.6
Consumer Finance 0.5
Power Generation 0.5
Food & Beverage 0.5
Pipeline 0.4
Chemicals 0.4
Wireline Telecommunications Services 0.3
Refining & Marketing 0.3
Home Improvement 0.2
Supermarkets & Pharmacies 0.2
Industrial Other 0.1
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Total 100.0%
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(1) Most recent distribution paid or declared through 6/30/15. 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 6/30/15. 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 less
than one year. Past performance is not indicative of future results.
(4) Blended Index consists of the following: Citigroup World Government Bond
Index (40.0%); JPMorgan Emerging Markets Bond Index - Global Diversified
(30.0%); JPMorgan Global Bond Index - Emerging Markets Diversified
(30.0%).
(5) Portfolio securities are included in a country based upon their underlying
credit exposure as determined by Aberdeen Asset Management Inc., the
sub-advisor.
(6) 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.
Page 2
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PORTFOLIO COMMENTARY
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FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
SEMI-ANNUAL REPORT
JUNE 30, 2015
SUB-ADVISOR
Aberdeen Asset Management Inc. ("Aberdeen" or the "Sub-Advisor"), an
SEC-registered investment advisor, is a wholly-owned subsidiary of Aberdeen
Asset Management PLC ("Aberdeen Group"). Aberdeen Group is a publicly-traded
international investment management group listed on the London Stock Exchange,
managing assets for both institutional and retail clients from offices around
the world.
PORTFOLIO MANAGEMENT TEAM
Investment decisions for the First Trust/Aberdeen Global Opportunity Income Fund
(the "Fund") are made by Aberdeen using a team approach and not by any one
individual. By making team decisions, Aberdeen seeks to ensure that the
investment process results in consistent returns across all portfolios with
similar objectives. Aberdeen does not employ separate research analysts.
Instead, Aberdeen's investment managers combine analysis with portfolio
management. Each member of the team has sector and portfolio responsibilities
such as day-to-day monitoring of liquidity. The overall result of this matrix
approach is a high degree of cross-coverage, leading to a deeper understanding
of the securities in which Aberdeen invests. Below are the members of the team
with significant responsibility for the day-to-day management of the Fund's
portfolio.
JOZSEF SZABO
Head of Global Macro
BRETT DIMENT
Head of Emerging Market Debt
KEVIN DALY
Senior Investment Manager, Emerging Market Debt
EDWIN GUTIERREZ
Head of Emerging Market Sovereign Debt
MAX WOLMAN
Senior Investment Manager, Emerging Market Debt
JAMES ATHEY
Investment Manager, Global Macro
COMMENTARY
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
The primary investment objective of the Fund is to seek a high level of current
income. As a secondary objective, the Fund seeks capital appreciation. The Fund
pursues its investment objectives by investing in the world bond markets through
a diversified portfolio of investment-grade and below-investment grade
government and corporate debt securities. There can be no assurance that the
Fund's investment objectives will be achieved, and the Fund may not be
appropriate for all investors.
FUND RECAP
The Fund had a net asset value ("NAV") total return(1) of -1.15% and a market
value total return of -4.52% for the six months ended June 30, 2015, compared to
the blended index(2) total return of -2.01% over the same period. In addition to
this blended index, the Fund currently uses other indexes for comparative
purposes. The total returns for the six months ended June 30, 2015, for these
indexes were as follows: the Barclays Global Emerging Markets Index was 1.49%
and the Barclays Global Aggregate Index was -3.08%.
An important factor impacting the return of the Fund relative to the indexes was
the Fund's use of financial leverage through the use of bank borrowings. The
Fund uses leverage because its managers believe that, over time, leverage
provides opportunities for additional income and total return for common
shareholders. However, the use of leverage can also expose common shareholders
-----------------------------
(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 less
than one year. Past performance is not indicative of future results.
(2) Blended index consists of the following: Citigroup World Government Bond
Index (40.0%); JPMorgan Emerging Markets Bond Index - Global Diversified
(30.0%); JPMorgan Global Bond Index - Emerging Markets Diversified
(30.0%).
Page 3
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PORTFOLIO COMMENTARY (CONTINUED)
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FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
SEMI-ANNUAL REPORT
JUNE 30, 2015
to additional volatility. For example, if the prices of securities held by the
Fund decline, the negative impact of changes on Common Share NAV and Common
Shareholder total return is magnified by the use of leverage. Conversely,
leverage may enhance Common Share returns during periods when the prices of
securities held by the Fund generally are rising. Unlike the Fund, the Barclays
Global Emerging Markets Index, Barclays Global Aggregate Index and the
components of the blended index are not leveraged. Leverage had a negative
impact on the performance of the Fund over this reporting period.
EMERGING MARKET COMMENTARY
MARKET RECAP
Emerging market ("EM") debt performance was mixed over the period. Brief spells
of strong performance in January and April were negated by volatility in crude
oil prices, speculation over the commencement of U.S. interest rate hikes and
increasing fears over a potential Greek exit from the Eurozone. On the other
hand, the initiation of the European Central Bank's ("ECB") asset purchase
program caused global bond market rates to rally in March (allowing Eurozone
bonds to outperform) and limited ripple effects from other factors which may
have affected sentiment towards EM debt.
The direction of oil price movements negatively drove sentiment in certain
credits but those countries less affected by the volatility of commodity prices
have benefitted from yield-hungry investors looking to diversify away from
developed markets.
Speculation surrounding the start date for U.S. interest rate hikes also
affected sentiment over the period. Disappointing macroeconomic data quickly
ruled out the possibility of a June hike. Market conjecture now points to the
third or fourth quarter of the year, although no formal groundwork has yet been
laid by the U.S. Federal Reserve (the "Fed").
Elsewhere, in Greece, negotiations with the Troika group of official
creditors(3) failed and Prime Minister Alexis Tsipras called for a last minute
referendum on whether the country should accept further austerity measures. The
ECB board member, Benoit Coeure, said that the ECB would moderately frontload
its asset purchases due to poor market liquidity during the summer months. This
comment was leapt on by the market and triggered a complete unwind of the euro
strength witnessed earlier in the period.
Over the period, the JPMorgan Emerging Markets Bond Index - Global Diversified
returned 1.67%, with high yield comfortably outperforming investment grade
assets, returning 3.13% and 0.54%, respectively. On a country level, Russia
(+15.7%), Belize (+12.0%) and Jamaica (+11.3%) performed the best. At the other
end of spectrum, Zambia and Ukraine (both -4.0%) performed the worst over the
period.
In local currency debt, the JPMorgan Global Bond Index - Emerging Markets
Diversified (unhedged in USD) returned -2.96%, with positive bond returns but
weak currency performance. On a country level, Russia (+28.9%) was by far the
top performer as it rebounded from oversold levels, while the Philippines
(+3.4%) and Nigeria (+0.2%) were the only other countries to have positive
returns. On the other side, Turkey (-14.0%) and Brazil (-10.1%) had the most
negative returns.
PERFORMANCE ANALYSIS - EMERGING MARKETS
The EM debt portion of the Fund outperformed the EM debt portion of its blended
index over the period under review. In hard currency debt, the Fund benefitted
from overweight positions in Russia, Venezuela and Kazakhstan as well as
off-index positioning in the United Arab Emirates. On the other side, an
underweight in China, relative to the EM debt portion of the blended index,
detracted from the Fund, as did a lack of holdings in the Philippines, Hungary,
Lebanon and Poland. In local currency debt, an underweight to Eastern Europe,
specifically Romania, Hungary and Poland, was the main contributor to the Fund's
performance, while an overweight to Russia was also beneficial. Overweights in
Brazil and Mexico detracted from the Fund, while positioning in Turkey was also
negative.
During the period, we participated in new U.S. dollar ("USD") 10-year Eurobonds
from Tunisia, Egypt and Gabon. We reduced the portfolio's Venezuela position,
based on recent good performance, and bought Argentina local-law USD securities.
We also reduced the Fund's exposure to Romania, as recent political developments
point to a loosening fiscal stance. We reduced some of the Fund's corporate
positions, specifically Cementos Pacasmayo, a Peruvian cement company, Bharti
Airtel, the Indian telecommunications company and Offshore Drilling Holdings, a
Mexican corporate. We also initiated a switch within Russian corporates,
preferring Gazprom Neft over Rosneft. In local currency bonds, we switched part
of our Brazil nominal bonds into inflation-linked ones. We reduced our Russia
holding which has outperformed in 2015 and allowed positions in Egyptian and
Serbian treasury bills to mature. In terms of currency allocations, we reduced
our Colombian peso and Indonesia rupiah exposure; on the other side, we added to
the Fund's Nigerian naira and Turkish lira positions.
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(3) International Monetary Fund, European Union and ECB.
Page 4
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PORTFOLIO COMMENTARY (CONTINUED)
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FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
SEMI-ANNUAL REPORT
JUNE 30, 2015
MARKET AND FUND OUTLOOK - EMERGING MARKETS
In terms of issuance, the first six months of the year have played out much as
recent years have suggested - that it is not the mainstream EM countries which
are the main drivers of new Eurobond issuance, but the high-yield nations.
Investment grade credits are more focused on using their local bond market for
their financing needs rather than issue in foreign currency, while high yielding
nations do not yet have a sophisticated pension fund system, banking sector or
asset management or insurance industry which can absorb large amounts of
government treasury bonds or bills. With new bonds this year from such countries
as the Dominican Republic, Armenia, Tunisia and Gabon, we do expect this trend
in "frontier market" bond growth to continue. We believe the exogenous risks
surrounding Greece and U.S. monetary policy will likely continue to keep risk
appetite subdued, although we do consider bond valuations attractive at this
point in time. Recent credit rating upgrades to Uruguay, Jamaica and an upwards
outlook revision in Malaysia indicate the improving nature of certain EM
countries, in our opinion.
DEVELOPED MARKET COMMENTARY
MARKET RECAP
While not necessarily reflected in the level of U.S. yields (mostly due to low
inflation and the on-going saga in Europe), the start of 2015 once again saw
investors expecting the U.S. recovery to continue pace. As in 2014, these hopes
were destined to be dashed, as cold weather and strike action at certain ports
on the west coast of the U.S. conspired to reduce activity levels during the
first quarter. Official data showed that, contrary to expectations of around
3.0% growth, the economy had in fact contracted by 0.2%. Putting aside the
questions around the accuracy of the seasonal adjustment being used, this was a
disappointment to investors and policy makers alike. When the early part of Q2
showed a tepid recovery from this disappointment, the Fed was forced to
acknowledge the weakness and subsequently pushed back expectations of a June and
possibly even a September hike.
Treasuries went on a 100+ basis point round trip during the first quarter alone
as a result of this economic uncertainty. Firstly, Treasuries rallied,
reflecting the growth disappointment of early Q1. However because of the weight
of short positioning at the time, this move was excessively aggressive with
10-year Treasury yields reaching a low of around 1.64%. This level was quickly
opposed by the market given the relatively short blip that a first quarter
disappointment represented within a much longer positive trend. 10-year Treasury
yields then spent much of the rest of the first half under pressure, as economic
data started to steadily improve again and latterly as German bund yields came
under intense pressure. The benchmark 10-year Treasury subsequently closed the
first half of 2015 at a yield of 2.35%, a rise of just over 15 basis points from
the turn of the year; however that small rise masks the roundabout journey
undertaken.
The story in Europe was, for a large proportion of the period, the reverse of
that witnessed in the U.S. Firstly, the ECB finally relented and announced a
full-scale quantitative easing ("QE") program with purchases of government and
agency debt in the amount of EUR 60bn per month until at least September 2016.
This saw yields across the Eurozone fall precipitously in the weeks after the
announcement and the euro continue to slide against all major currencies.
Furthermore, the growth data emanating from the region was universally positive,
reflecting the on-going cyclical recovery and the impact of the ECB's easing
measures of 2014.
The euro subsequently reached a low of 1.05 versus the USD and 10-year German
bund yields hit a record low of 0.05%. Those levels proved to be too much for
some, especially given the recovery in activity and inflation data witnessed
through Q1, and in a few volatile and aggressive trading sessions over a few
short weeks, German bund yields rose precipitously to reach an intraday high of
just over 1%. The euro strengthened too, with the EUR-USD exchange rate reaching
1.15 at one point.
The latter part of the period however was dominated by Greece. The Greek general
election in late January returned a majority for the coalition of left-wing
Syriza and the right-wing Independent Greeks. Both parties campaigned on a
pro-euro / anti-austerity ticket. While the result was met with some raised
eyebrows, the market reaction was initially rather benign, as investors prepared
to learn more when negotiations to secure the release of the final tranche of
bailout money began. The reality proved to be rather more volatile, embittered
and self-defeating than most had hoped. The lengthy, public and, at times,
acrimonious negotiations ended with no deal having been agreed, the Greek
economy on its knees with the small primary fiscal surplus wiped out and a
banking system unable to cope with public withdrawals without support from the
ECB via the Emergency Liquidity Assistance ("ELA"). With payment deadlines
looming and capital controls an inevitability, the period drew to a close with
Greece perilously close to a messy exit from the currency union. The euro
subsequently resumed its decline, although in a controlled manner, and German
bund yields fell by around 20 basis points to end the period at around 0.8%.
Page 5
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PORTFOLIO COMMENTARY (CONTINUED)
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FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
SEMI-ANNUAL REPORT
JUNE 30, 2015
The U.K. did not experience the same level of disappointment as the U.S. in Q1,
leading to a small underperformance of gilts at the start of the year. Very soon
after the first quarter however, attention turned to the looming general
election scheduled for the 7th of May. Results from the earliest polls suggested
a high likelihood of a hung Parliament and this picture did not really change
right up to voting day. With investors struggling to interpret the various
potential outcomes and their likely impact on markets, it was with a certain
sense of trepidation that we awaited the first exit polls. In the end, the fear
was misplaced and the result was far more decisive than had been suggested by
any of the polls. The incumbent Conservative party was returned with an outright
majority, quelling fears of policy paralysis and raising two main issues for the
following months. Firstly, the government would be able to proceed with its
austerity agenda without having to water down measures to appease a more
left-leaning coalition partner. Secondly, the Tory's pledge to provide an in-out
referendum on Britain's EU membership was now a policy reality. Neither of these
outcomes had a dramatic impact on markets, although it remains to be seen
whether we will see any lasting impact on either the economy or financial
markets from a potential "Brexit."
Both Australia and New Zealand battled their own demons during the first half of
2015, with the end result being an easing of policy from both central banks.
Australia continues to struggle with its on-going rebalance away from a mining
and mining-investment driven economy. Continued weakness in China and in
commodity prices continued to provide meaningful headwinds and with the
government struggling to return its fiscal balance to surplus, consumer
confidence took a hit. This led to 25 basis point cuts in the official cash rate
at the February and May Reserve Bank of Australia meetings.
The New Zealand problem was very similar in nature but had been heightened by
the Reserve Bank of New Zealand's ("RBNZ") rather bold decision to hike rates by
100 basis points during 2014. Growth data initially sustained its momentum but
inflation data continued to disappoint the RBNZ and when activity data also
slowed later in the period along with key commodity prices such as milk powder,
they were forced into action with a 25 basis point cut in June. It is expected
that they will need to cut at least once more.
PERFORMANCE ANALYSIS - DEVELOPED MARKETS
The developed market portion of the Fund underperformed the developed market
portion of the blended index. The portfolio's investments continued to be
concentrated in Australia, New Zealand, and the Eurozone relative to underweight
positions in the U.S. and Japan.
Performance was dominated by the relative performances of currencies as
overweights to the New Zealand and Australian dollars were a major drag,
although both were offset somewhat by beneficial moves in interest rates. The
main positives for performance were our underweight duration positions in the
U.S. and Japan along with our preference for the USD. Our preference for long
maturity assets in the Eurozone was also a detractor.
MARKET AND FUND OUTLOOK - DEVELOPED MARKETS
The events in Greece and China have once again shifted investor focus away from
economic growth, inflation and monetary policy. The events in Greece have proven
to be more volatile than many, including ourselves, expected and while a more
long-term solution is still likely to be found, there is still some way to go
and political and headline risks will remain a feature of the landscape for some
time. We still believe in the cyclical recoveries in the U.S. and UK and believe
that we are steadily approaching the first tightening from the Fed and
subsequently the Bank of England.
This is in contradistinction to the Eurozone, Japan and the Antipodean
economies, where the recoveries are in their infancies and still prone to
internal and external shocks. We believe policy there will remain easy by
necessity and therefore markets are likely to ebb and flow, as the economic
cycles play out over different time horizons.
With the Fed still the most likely first mover in the slow and measured
normalization of policy rates, we believe the U.S. dollar will remain the
dominant performer in global currency markets.
Page 6
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a)
JUNE 30, 2015 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
---------------- --------------------------------------------------------- ---------- ------------ -------------
FOREIGN SOVEREIGN BONDS AND NOTES - 106.3%
ARGENTINA - 2.9%
6,690,000 Argentina Bonar Bonds (USD).............................. 7.00% 04/17/17 $ 6,449,903
-------------
ARMENIA - 1.0%
2,257,000 Republic of Armenia (USD) (b)............................ 6.00% 09/30/20 2,221,791
-------------
AUSTRALIA - 4.0%
9,800,000 Treasury Corp. of Victoria (AUD)......................... 6.00% 10/17/22 9,060,787
-------------
BRAZIL - 6.3%
51,190,000 Brazil Notas do Tesouro Nacional, Series F (BRL)......... 10.00% 01/01/25 14,272,928
-------------
CANADA - 7.2%
5,000,000 Canadian Government Bond (CAD)........................... 8.00% 06/01/23 5,962,650
15,000,000 Province of Manitoba, Canada (NZD)....................... 6.38% 09/01/15 10,220,612
-------------
16,183,262
-------------
CHILE - 0.4%
950,000 Empresa Nacional del Petroleo (USD) (b).................. 4.38% 10/30/24 952,116
-------------
COLOMBIA - 2.7%
3,122,000,000 Colombia Government International Bond (COP)............. 7.75% 04/14/21 1,324,793
10,080,000,000 Colombia Government International Bond (COP)............. 9.85% 06/28/27 4,766,808
-------------
6,091,601
-------------
COSTA RICA - 0.5%
1,200,000 Costa Rica Government International Bond (USD)........... 4.25% 01/26/23 1,113,600
-------------
CROATIA - 2.1%
3,580,000 Croatia Government International Bond (USD).............. 6.63% 07/14/20 3,932,952
749,000 Croatia Government International Bond (USD).............. 6.00% 01/26/24 795,627
-------------
4,728,579
-------------
DOMINICAN REPUBLIC - 2.1%
700,000 Dominican Republic International Bond (USD).............. 7.50% 05/06/21 789,250
1,760,000 Dominican Republic International Bond (USD).............. 5.88% 04/18/24 1,834,800
1,720,000 Dominican Republic International Bond (USD).............. 8.63% 04/20/27 2,068,300
-------------
4,692,350
-------------
EGYPT - 0.9%
2,070,000 Egypt Government International Bond (USD) (b)............ 5.88% 06/11/25 2,026,530
-------------
ETHIOPIA - 1.3%
2,370,000 Federal Democratic Republic of Ethiopia (USD) (b)........ 6.63% 12/11/24 2,348,670
650,000 Federal Democratic Republic of Ethiopia (USD)............ 6.63% 12/11/24 644,150
-------------
2,992,820
-------------
GABON - 0.2%
470,000 Gabonese Republic (USD) (b).............................. 6.95% 06/16/25 467,650
-------------
GEORGIA - 0.6%
1,300,000 Georgian Oil and Gas Corp. JSC (USD) (b)................. 6.88% 05/16/17 1,316,250
-------------
GHANA - 1.3%
1,300,000 Republic of Ghana (USD) (b).............................. 8.13% 01/18/26 1,186,510
1,840,000 Republic of Ghana (USD).................................. 8.13% 01/18/26 1,679,368
-------------
2,865,878
-------------
See Notes to Financial Statements Page 7
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
JUNE 30, 2015 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
---------------- --------------------------------------------------------- ---------- ------------ -------------
FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED)
HONDURAS - 1.1%
2,360,000 Honduras Government International Bond (USD) (b)......... 7.50% 03/15/24 $ 2,564,529
-------------
HUNGARY - 1.0%
539,930,000 Hungary Government Bond (HUF)............................ 5.50% 06/24/25 2,158,949
-------------
INDONESIA - 2.7%
1,750,000 Indonesia Government International Bond (USD) (b)........ 5.88% 01/15/24 1,938,125
34,014,000,000 Indonesia Treasury Bond (IDR)............................ 8.38% 03/15/34 2,556,781
1,600,000 Pertamina Persero PT (USD) (b)........................... 4.30% 05/20/23 1,536,000
-------------
6,030,906
-------------
IRAQ - 1.2%
3,360,000 Republic of Iraq (USD)................................... 5.80% 01/15/28 2,733,696
-------------
ITALY - 8.4%
4,650,000 Italy Buoni Poliennali Del Tesoro (EUR).................. 9.00% 11/01/23 7,865,259
6,800,000 Italy Buoni Poliennali Del Tesoro (EUR).................. 7.25% 11/01/26 11,031,605
-------------
18,896,864
-------------
IVORY COAST - 1.3%
900,000 Ivory Coast Government International Bond (USD) (b)...... 6.38% 03/03/28 882,000
2,230,000 Ivory Coast Government International Bond (USD).......... 5.75% 12/31/32 2,113,371
-------------
2,995,371
-------------
KAZAKHSTAN - 1.9%
4,440,000 Kazakhstan Government International Bond (USD) (b)....... 3.88% 10/14/24 4,195,800
-------------
KENYA - 0.5%
1,180,000 Kenya Government International Bond (USD)................ 6.88% 06/24/24 1,203,104
-------------
MEXICO - 5.0%
29,400,000 Mexican Bonos (MXN)...................................... 6.50% 06/09/22 1,942,514
20,000,000 Mexican Bonos (MXN)...................................... 10.00% 12/05/24 1,632,512
74,570,000 Mexican Bonos (MXN)...................................... 8.50% 11/18/38 5,698,723
26,465,866 Mexican Udibonos, Inflation Adjusted Bond (MXN) (c)...... 4.50% 11/22/35 1,950,659
-------------
11,224,408
-------------
MONGOLIA - 1.5%
2,130,000 Development Bank of Mongolia LLC (USD)................... 5.75% 03/21/17 2,098,050
1,500,000 Mongolia Government International Bond (USD)............. 5.13% 12/05/22 1,361,250
-------------
3,459,300
-------------
NEW ZEALAND - 7.5%
18,630,000 New Zealand Government Bond (NZD)........................ 6.00% 12/15/17 13,563,974
4,100,000 New Zealand Government Bond (NZD)........................ 6.00% 05/15/21 3,208,216
-------------
16,772,190
-------------
NIGERIA - 2.3%
980,850,000 Nigeria Government Bond (NGN)............................ 16.00% 06/29/19 5,099,632
-------------
POLAND - 1.2%
5,650,000 Poland Government Bond (PLN)............................. 4.00% 10/25/23 1,593,345
2,980,000 Poland Government Bond (PLN)............................. 5.75% 04/25/29 992,356
-------------
2,585,701
-------------
PORTUGAL - 4.7%
7,830,000 Portugal Obrigacoes do Tesouro OT (EUR) (b).............. 5.65% 02/15/24 10,671,821
-------------
Page 8 See Notes to Financial Statements
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
JUNE 30, 2015 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
---------------- --------------------------------------------------------- ---------- ------------ -------------
FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED)
ROMANIA - 1.4%
2,680,000 Romanian Government International Bond (USD)............. 6.75% 02/07/22 $ 3,138,950
-------------
RUSSIA - 4.3%
638,775,000 Russian Federal Bond - OFZ (RUB)......................... 7.05% 01/19/28 8,739,243
600,000 Russian Foreign Bond - Eurobond (USD).................... 4.88% 09/16/23 596,400
400,000 Russian Foreign Bond - Eurobond (USD).................... 5.88% 09/16/43 387,296
-------------
9,722,939
-------------
RWANDA - 0.9%
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
-------------
1,969,500
-------------
SENEGAL - 0.7%
1,440,000 Senegal Government International Bond (USD).............. 8.75% 05/13/21 1,613,088
-------------
SERBIA - 1.9%
4,030,000 Republic of Serbia (USD)................................. 5.25% 11/21/17 4,183,543
-------------
SOUTH AFRICA - 4.7%
680,000 Eskom Holdings SOC Ltd. (USD) (b)........................ 6.75% 08/06/23 692,736
1,800,000 Eskom Holdings SOC Ltd. (USD)............................ 6.75% 08/06/23 1,827,144
54,930,000 South Africa Government Bond (ZAR)....................... 10.50% 12/21/26 5,258,669
35,370,000 South Africa Government Bond (ZAR)....................... 8.00% 01/31/30 2,745,356
-------------
10,523,905
-------------
SPAIN - 4.9%
4,000,000 Spain Government Bond (EUR).............................. 6.00% 01/31/29 6,081,830
3,300,000 Spain Government Bond (EUR) (b).......................... 5.15% 10/31/44 4,922,260
-------------
11,004,090
-------------
TANZANIA - 0.5%
1,150,000 Tanzania Government International Bond (USD) (d)......... 6.40% 03/09/20 1,171,563
-------------
TURKEY - 7.9%
6,600,000 Turkey Government Bond (TRY)............................. 6.30% 02/14/18 2,288,366
13,870,000 Turkey Government Bond (TRY)............................. 10.40% 03/20/24 5,571,081
4,930,000 Turkey Government Bond (TRY)............................. 9.00% 07/24/24 1,827,527
5,460,000 Turkey Government Bond (TRY)............................. 8.00% 03/12/25 1,886,482
4,463,597 Turkey Government Bond, Inflation
Adjusted Bond (TRY) (c)............................... 3.00% 02/23/22 1,713,758
4,120,000 Turkey Government International Bond (USD)............... 6.25% 09/26/22 4,593,553
-------------
17,880,767
-------------
UNITED ARAB EMIRATES - 1.1%
1,990,000 Emirate of Dubai Government International Bonds (USD).... 7.75% 10/05/20 2,436,258
-------------
UNITED KINGDOM - 2.1%
2,230,000 United Kingdom Gilt (GBP)................................ 4.25% 12/07/49 4,768,140
-------------
URUGUAY - 1.7%
655,000 Uruguay Government International Bond (USD).............. 7.63% 03/21/36 876,062
76,328,796 Uruguay Government International Bond,
Inflation Adjusted Bond (UYU) (c)..................... 5.00% 09/14/18 2,883,125
-------------
3,759,187
-------------
See Notes to Financial Statements Page 9
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
JUNE 30, 2015 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
---------------- --------------------------------------------------------- ---------- ------------ -------------
FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED)
ZAMBIA - 0.4%
1,000,000 Zambia Government International Bond (USD) (b)........... 8.50% 04/14/24 $ 1,006,875
-------------
TOTAL FOREIGN SOVEREIGN BONDS AND NOTES............................................ 239,207,121
(Cost $258,939,917) -------------
FOREIGN CORPORATE BONDS AND NOTES (e) - 26.2%
BANGLADESH - 0.4%
1,000,000 Banglalink Digital Communications Ltd. (USD) (b)......... 8.63% 05/06/19 1,015,000
-------------
BRAZIL - 1.6%
1,323,000 Marfrig Overseas Ltd. (USD).............................. 9.50% 05/04/20 1,358,324
1,550,000 OAS Finance Ltd. (USD) (b) (g) (h) (i)................... 8.88% (f) 323,950
460,000 OAS Investments GmbH (USD) (b) (h) (i)................... 8.25% 10/19/19 96,140
2,150,188 QGOG Atlantic/Alaskan Rigs Ltd. (USD).................... 5.25% 07/30/18 1,929,793
-------------
3,708,207
-------------
CHINA - 0.5%
1,020,000 Country Garden Holdings Co., Ltd. (USD).................. 7.50% 03/09/20 1,055,050
-------------
COLOMBIA - 0.7%
1,790,000 Pacific Rubiales Energy Corp. (USD) (b).................. 5.38% 01/26/19 1,474,960
-------------
DOMINICAN REPUBLIC - 0.6%
1,350,000 AES Andres Dominicana, Ltd. / Itabo Dominicana,
Ltd. (USD)............................................ 9.50% 11/12/20 1,431,000
-------------
GUATEMALA - 1.2%
980,000 Comcel Trust via Comunicaciones Celulares SA (USD) (b)... 6.88% 02/06/24 1,033,900
1,550,000 Industrial Subordinated Trust (USD)...................... 8.25% 07/27/21 1,681,905
-------------
2,715,805
-------------
HONG KONG - 0.5%
1,020,000 Shimao Property Holdings Ltd. (USD)...................... 8.38% 02/10/22 1,066,574
-------------
INDIA - 0.9%
1,040,000 ABJA Investment Co. Pte Ltd. (USD)....................... 5.95% 07/31/24 1,044,290
1,000,000 ICICI Bank Ltd. (USD) (g)................................ 6.38% 04/30/22 1,032,910
-------------
2,077,200
-------------
KAZAKHSTAN - 0.6%
1,500,000 Zhaikmunai LLP (USD) (b)................................. 7.13% 11/13/19 1,434,375
-------------
MEXICO - 2.5%
1,050,000 Alfa SAB de CV (USD)..................................... 6.88% 03/25/44 1,078,560
850,000 CEMEX Espana S.A. (USD).................................. 9.88% 04/30/19 934,320
460,000 Cemex Finance, LLC (USD) (b)............................. 9.38% 10/12/22 514,625
1,640,000 Sixsigma Networks Mexico S.A. de CV (USD) (b)............ 8.25% 11/07/21 1,699,368
405,000 Southern Copper Corp. (USD).............................. 3.88% 04/23/25 391,084
1,130,000 Unifin Financiera SAPI de CV SOFOM ENR (USD)............. 6.25% 07/22/19 1,122,938
-------------
5,740,895
-------------
MOZAMBIQUE - 1.1%
2,550,000 EMATUM Via Mozambique EMATUM Finance
2020 BV (USD)......................................... 6.31% 09/11/20 2,382,975
-------------
Page 10 See Notes to Financial Statements
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
JUNE 30, 2015 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
---------------- --------------------------------------------------------- ---------- ------------ -------------
FOREIGN CORPORATE BONDS AND NOTES (e) (CONTINUED)
NIGERIA - 1.2%
1,200,000 Diamond Bank PLC (USD) (b)............................... 8.75% 05/21/19 $ 1,158,600
1,520,000 Zenith Bank PLC (USD) (b)................................ 6.25% 04/22/19 1,468,700
-------------
2,627,300
-------------
PARAGUAY - 0.9%
1,900,000 Banco Regional SAECA (USD) (b)........................... 8.13% 01/24/19 2,049,625
-------------
PERU - 0.6%
625,000 InRetail Consumer (USD) (b).............................. 5.25% 10/10/21 646,094
730,000 Union Andina de Cementos SAA (USD)....................... 5.88% 10/30/21 740,037
-------------
1,386,131
-------------
RUSSIA - 3.0%
1,560,000 Alfa Bank OJSC Via Alfa Bond Issuance PLC (USD).......... 7.75% 04/28/21 1,547,520
1,640,000 Evraz Group S.A. (USD) (b)............................... 6.50% 04/22/20 1,491,580
1,350,000 Lukoil International Finance BV (USD).................... 4.56% 04/24/23 1,208,250
1,170,000 Sberbank of Russia Via SB Capital SA (USD)............... 6.13% 02/07/22 1,131,975
1,350,000 Vimpel Communications Via VIP Finance
Ireland Ltd., OJSC (USD).............................. 7.75% 02/02/21 1,368,563
-------------
6,747,888
-------------
SUPRANATIONALS - 6.2%
17,600,000 Asian Development Bank (AUD)............................. 5.50% 02/15/16 13,853,470
-------------
TUNISIA - 0.9%
2,100,000 Banque Centrale de Tunisie SA (USD) (b).................. 5.75% 01/30/25 2,058,000
-------------
TURKEY - 0.9%
750,000 Arcelik AS (USD) (b)..................................... 5.00% 04/03/23 721,215
1,150,000 Yasar Holdings AS (USD) (b).............................. 8.88% 05/06/20 1,219,000
-------------
1,940,215
-------------
UNITED ARAB EMIRATES - 1.1%
2,270,000 Jafz Sukuk Ltd. (USD).................................... 7.00% 06/19/19 2,585,326
-------------
VENEZUELA - 0.8%
2,470,000 Petroleos de Venezuela S.A. (USD)........................ 8.50% 11/02/17 1,704,300
-------------
TOTAL FOREIGN CORPORATE BONDS AND NOTES............................................ 59,054,296
(Cost $60,428,628) -------------
U.S. GOVERNMENT BONDS AND NOTES - 0.5%
UNITED STATES - 0.5%
1,000,000 United States Treasury Note (USD)........................ 3.75% 11/15/43 1,125,000
-------------
TOTAL U.S. GOVERNMENT BONDS AND NOTES.............................................. 1,125,000
(Cost $1,168,640) -------------
TOTAL INVESTMENTS - 133.0%......................................................... 299,386,417
(Cost $320,537,185) (j)
OUTSTANDING LOANS - (42.9%)........................................................ (96,507,481)
NET OTHER ASSETS AND LIABILITIES - 9.9%............................................ 22,190,358
-------------
NET ASSETS - 100.0%................................................................ $ 225,069,294
=============
See Notes to Financial Statements Page 11
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
JUNE 30, 2015 (UNAUDITED)
-----------------------------
(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 June 30, 2015, securities noted as such
amounted to $57,849,895 or 25.70% of net assets.
(c) 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.
(d) Floating rate security. The interest rate shown reflects the rate in
effect at June 30, 2015.
(e) Portfolio securities are included in a country based upon their underlying
credit exposure as determined by the Fund's investment sub-advisor.
(f) Perpetual maturity.
(g) Fixed-to-floating or fixed-to-variable rate security. The interest rate
shown reflects the fixed rate in effect at June 30, 2015. At a
predetermined date, the fixed rate will change to a floating rate or a
variable rate.
(h) This issuer is in default and interest is not being accrued by the Fund.
(i) This company has filed for protection in a Sao Paulo state court.
(j) Aggregate cost for financial reporting purposes, which approximates the
aggregate cost for federal income tax purposes. As of June 30, 2015, the
aggregate gross unrealized appreciation for all securities in which there
was an excess of value over tax cost was $7,210,129 and the aggregate
gross unrealized depreciation for all securities in which there was an
excess of tax cost over value was $28,360,897.
Currency Abbreviations:
AUD Australian Dollar MXN Mexican Peso
BRL Brazilian Real NGN Nigerian Naira
CAD Canadian Dollar NZD New Zealand Dollar
COP Colombian Peso PLN Polish Zloty
EUR Euro RUB Russian Ruble
GBP British Pound Sterling TRY Turkish Lira
HUF Hungarian Forint USD United States Dollar
IDR Indonesian Rupiah UYU Uruguayan Peso
INR Indian Rupee ZAR South African Rand
Page 12 See Notes to Financial Statements
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2015 (UNAUDITED)
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of June 30, 2015
is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
INVESTMENTS 6/30/2015 PRICES INPUTS INPUTS
--------------------------------------------------- ------------- -------------- -------------- ------------
Foreign Sovereign Bonds and Notes*................. $ 239,207,121 $ -- $ 239,207,121 $ --
Foreign Corporate Bonds and Notes*................. 59,054,296 -- 59,054,296 --
U.S. Government Bonds and Notes*................... 1,125,000 -- 1,125,000 --
------------- -------------- -------------- ------------
Total Investments.................................. 299,386,417 -- 299,386,417 --
Forward Foreign Currency Contracts**............... 3,533,800 -- 3,533,800 --
------------- -------------- -------------- ------------
Total.............................................. $ 302,920,217 $ -- $ 302,920,217 $ --
============= ============== ============== ============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
6/30/2015 PRICES INPUTS INPUTS
--------------------------------------------------- ------------- -------------- -------------- ------------
Forward Foreign Currency Contracts**............... $ (777,997) $ -- $ (777,997) $ --
============= ============== ============== ============
* See the Portfolio of Investments for country breakout.
** See the Forward Foreign Currency Contracts 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 June 30, 2015.
-------------------------------------------
CURRENCY EXPOSURE % OF TOTAL
DIVERSIFICATION INVESTMENTS+
-------------------------------------------
USD 59.9%
EUR 9.0
BRL 4.8
AUD 3.3
MXN 3.2
TRY 3.1
RUB 2.9
ZAR 2.7
CAD 2.0
NGN 1.7
GBP 1.6
INR 1.3
UYU 1.0
PLN 0.9
IDR 0.8
HUF 0.7
COP 0.6
NZD 0.5
-------------------------------------------
Total 100.0%
======
+ The weightings include the impact of currency forwards.
See Notes to Financial Statements Page 13
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 2015 (UNAUDITED)
FORWARD FOREIGN CURRENCY CONTRACTS (see Note 2C - Forward Foreign Currency
Contracts in the Notes to Financial Statements).
FORWARD FOREIGN CURRENCY CONTRACTS
------------------------------------------------------------
PURCHASE SALE UNREALIZED
SETTLEMENT AMOUNT AMOUNT VALUE AS OF VALUE AS OF APPRECIATION
DATE COUNTERPARTY PURCHASED (a) SOLD (a) 12/31/2014 12/31/2014 (DEPRECIATION)
------------ -------------- --------------------- ------------------- ---------------- ---------------- --------------
07/16/15 GS CAD 200,000 USD 158,499 $ 160,093 $ 158,499 $ 1,594
07/16/15 CIT EUR 491,158 USD 523,000 547,685 523,000 24,685
08/28/15 JPM INR 257,442,000 USD 3,967,972 3,996,401 3,967,972 28,429
07/16/15 UBS MXN 1,011,000 USD 65,851 64,248 65,851 (1,603)
07/16/15 BAR NZD 10,965,000 USD 7,632,342 7,419,705 7,632,342 (212,637)
07/16/15 UBS NZD 902,000 USD 627,850 610,358 627,850 (17,492)
07/16/15 JPM USD 13,066,451 AUD 17,064,000 13,066,451 13,153,495 (87,044)
08/28/15 CIT USD 4,254,226 COP 10,588,769,000 4,254,226 4,038,643 215,583
07/16/15 BAR USD 8,884,157 EUR 8,309,000 8,884,157 9,265,278 (381,121)
07/16/15 DB USD 3,683,615 EUR 3,306,000 3,683,615 3,686,486 (2,871)
07/16/15 UBS USD 1,466,479 EUR 1,382,000 1,466,479 1,541,054 (74,575)
07/16/15 DB USD 1,788,118 MXN 27,139,000 1,788,118 1,724,652 63,466
07/16/15 RBC USD 33,776,128 NZD 45,186,000 33,776,128 30,576,085 3,200,043
07/16/15 CIT USD 4,070,556 TRY 10,965,000 4,070,556 4,071,210 (654)
-----------
Net Unrealized Appreciation (Depreciation).................................................................. $ 2,755,803
===========
(a) Please see Portfolio of Investments for currency descriptions.
See Note 2D - Offsetting on the Statement of Assets and Liabilities in the Notes
to Financial Statements for a table that presents the forward foreign currency
contracts' assets and liabilities on a gross basis.
Counterparty Abbreviations:
BAR Barclays Bank
CIT Citibank, NA
DB Deutsche Bank
GS Goldman Sachs
JPM JPMorgan Chase
RBC Royal Bank of Canada
UBS UBS
Page 14 See Notes to Financial Statements
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2015 (UNAUDITED)
ASSETS:
Investments, at value
(Cost $320,537,185)........................................................................... $ 299,386,417
Cash.......................................................................................... 14,357,174
Foreign currency (Cost $437,297).............................................................. 435,406
Unrealized appreciation on forward foreign currency contracts................................. 3,533,800
Receivables:
Interest................................................................................... 5,417,171
Prepaid expenses.............................................................................. 15,825
-------------
Total Assets............................................................................... 323,145,793
-------------
LIABILITIES:
Outstanding loans............................................................................. 96,507,481
Unrealized depreciation on forward foreign currency contracts................................. 777,997
Payables:
Investment securities purchased............................................................ 285,315
Investment advisory fees................................................................... 265,518
Custodian fees............................................................................. 140,305
Audit and tax fees......................................................................... 33,807
Deferred Indonesian capital gain tax....................................................... 28,216
Administrative fees........................................................................ 21,179
Transfer agent fees........................................................................ 4,924
Interest and fees on loan.................................................................. 4,910
Printing fees.............................................................................. 3,619
Financial reporting fees................................................................... 771
Trustees' fees and expenses................................................................ 162
Other liabilities............................................................................. 2,295
-------------
Total Liabilities.......................................................................... 98,076,499
-------------
NET ASSETS.................................................................................... $ 225,069,294
=============
NET ASSETS CONSIST OF:
Paid-in capital............................................................................... $ 269,411,831
Par value..................................................................................... 174,102
Accumulated net investment income (loss)...................................................... (11,297,582)
Accumulated net realized gain (loss) on investments, forward foreign currency
contracts and foreign currency transactions................................................. (18,029,520)
Net unrealized appreciation (depreciation) on investments, forward foreign
currency contracts and foreign currency translation......................................... (15,189,537)
-------------
NET ASSETS.................................................................................... $ 225,069,294
=============
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share).......................... $ 12.93
=============
Number of Common Shares outstanding (unlimited number of Common Shares has been authorized)... 17,410,203
=============
See Notes to Financial Statements Page 15
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2015 (UNAUDITED)
INVESTMENT INCOME:
Interest (net of foreign withholding tax of $20,385).......................................... $ 10,022,546
Other......................................................................................... 176
-------------
Total investment income.................................................................... 10,022,722
-------------
EXPENSES:
Investment advisory fees...................................................................... 1,636,567
Interest and fees on outstanding loans........................................................ 439,880
Custodian fees................................................................................ 196,886
Administrative fees........................................................................... 49,921
Printing fees................................................................................. 31,921
Audit and tax fees............................................................................ 28,860
Transfer agent fees........................................................................... 19,942
Trustees' fees and expenses................................................................... 9,500
Legal fees.................................................................................... 7,815
Financial reporting fees...................................................................... 4,625
Other......................................................................................... 41,314
-------------
Total expenses............................................................................. 2,467,231
-------------
NET INVESTMENT INCOME (LOSS).................................................................. 7,555,491
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on:
Investments................................................................................ (5,000,216)
Forward foreign currency contracts......................................................... 180,058
Foreign currency transactions.............................................................. (9,302,594)
-------------
Net realized gain (loss)...................................................................... (14,122,752)
-------------
Net change in unrealized appreciation (depreciation) on:
Investments................................................................................ 252,902
Forward foreign currency contracts......................................................... 847,754
Foreign currency translation............................................................... 1,186,185
Net change in deferred Indonesian capital gains tax........................................... (11,563)
-------------
Net change in unrealized appreciation (depreciation).......................................... 2,275,278
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS)....................................................... (11,847,474)
-------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............................... $ (4,291,983)
=============
Page 16 See Notes to Financial Statements
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE
SIX MONTHS FOR THE
ENDED YEAR
6/30/2015 ENDED
(UNAUDITED) 12/31/2014
-------------- --------------
OPERATIONS:
Net investment income (loss)......................................................... $ 7,555,491 $ 17,900,207
Net realized gain (loss)............................................................. (14,122,752) 1,304,874
Net change in unrealized appreciation (depreciation)................................. 2,275,278 (22,402,188)
-------------- --------------
Net increase (decrease) in net assets resulting from operations...................... (4,291,983) (3,197,107)
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income................................................................ (10,446,122) (12,302,883)
Net realized gain.................................................................... -- (2,263,326)
Return of capital.................................................................... -- (9,111,667)
-------------- --------------
Total distributions to shareholders.................................................. (10,446,122) (23,677,876)
-------------- --------------
Total increase (decrease) in net assets.............................................. (14,738,105) (26,874,983)
NET ASSETS:
Beginning of period.................................................................. 239,807,399 266,682,382
-------------- --------------
End of period........................................................................ $ 225,069,294 $ 239,807,399
============== ==============
Accumulated net investment income (loss) at end of period............................ $ (11,297,582) $ (8,406,951)
============== ==============
COMMON SHARES:
Common Shares at end of period....................................................... 17,410,203 17,410,203
============== ==============
See Notes to Financial Statements Page 17
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2015 (UNAUDITED)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net increase (decrease) in net assets resulting from operations................. $ (4,291,983)
Adjustments to reconcile net increase (decrease) in net assets resulting from
operations to net cash provided by operating activities:
Purchases of investments................................................... (100,187,976)
Sales, maturities and paydowns of investments.............................. 102,924,468
Net amortization/accretion of premiums/discounts on investments............ 153,569
Net realized gain/loss on investments...................................... 5,000,216
Net realized gain/loss on foreign currency transactions (a)................ 12,885,009
Net change in unrealized appreciation/depreciation on forward foreign
currency contracts..................................................... (847,754)
Net change in unrealized appreciation/depreciation on investments.......... (252,902)
CHANGES IN ASSETS AND LIABILITIES:
Decrease in interest receivable............................................ 763,948
Increase in prepaid expenses............................................... (11,887)
Decrease in interest and fees on loan payable.............................. (5,354)
Decrease in investment advisory fees payable............................... (22,611)
Decrease in audit and tax fees payable..................................... (24,393)
Decrease in legal fees payable............................................. (3,774)
Decrease in printing fees payable.......................................... (19,279)
Decrease in administrative fees payable.................................... (61,735)
Increase in custodian fees payable......................................... 35,777
Decrease in transfer agent fees payable.................................... (1,786)
Increase in Trustees' fees and expenses payable............................ 154
Increase in deferred Indonesian capital gains tax.......................... 11,563
Increase in other liabilities payable...................................... 583
-------------
CASH PROVIDED BY OPERATING ACTIVITIES........................................... $ 16,043,853
-------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to Common Shareholders from net investment income............ (10,446,122)
-------------
CASH USED IN FINANCING ACTIVITIES............................................... (10,446,122)
Effect of exchange rate changes on Euro Loan (b)................................ (897,270)
-------------
Increase in cash and foreign currency (c)....................................... 4,700,461
Cash and foreign currency at beginning of period................................ 10,092,119
-------------
CASH AND FOREIGN CURRENCY AT END OF PERIOD...................................... $ 14,792,580
=============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest and fees............................... $ 445,234
=============
-----------------------------
(a) This amount is a component of net realized gain (loss) on foreign currency
transactions as shown on the Statement of Operations.
(b) This amount is a component of net change in unrealized appreciation
(depreciation) on foreign currency translation as shown on the Statement
of Operations.
(c) Includes net change in unrealized appreciation (depreciation) on foreign
currency of $61,120.
Page 18 See Notes to Financial Statements
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
FINANCIAL HIGHLIGHTS
FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
6/30/2015 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 12/31/2014 12/31/2013 12/31/2012 12/31/2011 12/31/2010
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, beginning of period....... $ 13.77 $ 15.32 $ 18.37 $ 16.94 $ 17.80 $ 16.58
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss)............... 0.43 1.03 1.07 1.18 1.22 1.28
Net realized and unrealized gain (loss).... (0.67) (1.22) (2.56) 1.81 (0.52) 1.50
--------- --------- --------- --------- --------- ---------
Total from investment operations........... (0.24) (0.19) (1.49) 2.99 0.70 2.78
--------- --------- --------- --------- --------- ---------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income...................... (0.60) (0.71) (1.08) (1.32) (1.55) (1.56)
Net realized gain.......................... -- (0.13) (0.13) -- -- --
Return of capital.......................... -- (0.52) (0.35) (0.24) (0.01) --
--------- --------- --------- --------- --------- ---------
Total distributions........................ (0.60) (1.36) (1.56) (1.56) (1.56) (1.56)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period............. $ 12.93 $ 13.77 $ 15.32 $ 18.37 $ 16.94 $ 17.80
========= ========= ========= ========= ========= =========
Market value, end of period................ $ 10.92 $ 12.04 $ 14.05 $ 17.85 $ 15.76 $ 17.36
========= ========= ========= ========= ========= =========
TOTAL RETURN BASED ON NET ASSET VALUE (a).. (1.15)% (0.84)% (7.91)% 18.51% 4.37% 17.90%
========= ========= ========= ========= ========= =========
TOTAL RETURN BASED ON MARKET VALUE (a)..... (4.52)% (5.46)% (13.13)% 23.85% (0.44)% 18.93%
========= ========= ========= ========= ========= =========
-----------------------------
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's)....... $ 225,069 $ 239,807 $ 266,682 $ 319,570 $ 294,520 $ 309,342
Ratio of total expenses to average net
assets.................................. 2.13% (b) 2.16% 2.10% 2.09% 2.02% 2.13%
Ratio of total expenses to average net
assets excluding interest expense.......... 1.75% (b) 1.76% 1.72% 1.71% 1.63% 1.65%
Ratio of net investment income (loss) to
average net assets...................... 6.52% (b) 6.79% 6.41% 6.72% 6.94% 7.41%
Portfolio turnover rate.................... 32% 61% 56% 56% 52% 101%
INDEBTEDNESS:
Total loan outstanding (in 000's).......... $ 96,507 $ 97,405 $ 98,966 $ 98,441 $ 98,198 $ 88,595
Asset coverage per $1,000 of
indebtedness (c)........................ $ 3,332 $ 3,462 $ 3,695 $ 4,246 $ 3,999 $ 4,492
-----------------------------
(a) 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 ("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 less than one year. Past performance is not indicative of
future results.
(b) Annualized.
(c) Calculated by subtracting the Fund's total liabilities (not including the
loan outstanding) from the Fund's total assets, and dividing by the
outstanding loan balance in 000's.
See Notes to Financial Statements Page 19
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
JUNE 30, 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").
The Fund's primary investment objective is to seek a high level of current
income. As a secondary objective, the Fund seeks capital appreciation. The Fund
pursues these objectives by investing its Managed Assets in the world bond
markets through a diversified portfolio of investment grade and below-investment
grade government and corporate debt securities. "Managed Assets" means the total
asset value of the Fund minus the sum of the Fund's liabilities other than the
principal amount of borrowings, if any. There can be no assurance that the Fund
will achieve its investment objectives. The Fund may not be appropriate for all
investors.
2. SIGNIFICANT ACCOUNTING POLICIES
The Fund, which is an investment company within the scope of Financial
Accounting Standards Board ("FASB") Accounting Standards Update 2013-08, follows
accounting and reporting guidance under FASB Accounting Standards Codification
Topic 946, "Financial Services-Investment Companies." The following is a summary
of significant accounting policies consistently followed by the Fund in the
preparation of its financial statements. The preparation of financial statements
in accordance with accounting principles generally accepted in the United States
of America ("U.S. GAAP") requires management to make estimates and assumptions
that affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates.
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 Fund's 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 the 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
Page 20
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
JUNE 30, 2015 (UNAUDITED)
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.
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.
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 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 June 30, 2015, is
included with the Fund's Portfolio of Investments.
Page 21
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
JUNE 30, 2015 (UNAUDITED)
B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Interest income is recorded daily on the accrual basis. Amortization of premiums
and accretion of discounts are recorded by using the effective interest method.
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 June 30, 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
between two parties ("Counterparties") 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 in "Unrealized appreciation (depreciation) on forward foreign
currency contracts" on the Statement of Assets and Liabilities. The change in
unrealized appreciation (depreciation) is included in "Net change in unrealized
appreciation (depreciation) on forward foreign currency contracts" on the
Statement of Operations. When the forward contract is closed, the Fund records a
realized gain or loss equal to the difference between the proceeds from (or the
cost of) the closing transaction and the Fund's basis in the contract. This
realized gain or loss is included in "Net realized gain (loss) on forward
foreign currency contracts" on the Statement of Operations. 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. OFFSETTING ON THE STATEMENT OF ASSETS AND LIABILITIES
Accounting Standards Update No. 2011-11 "Disclosures about Offsetting Assets and
Liabilities" ("ASU 2011-11") requires entities to disclose both gross and net
information about instruments and transactions eligible for offset on the
Statement of Assets and Liabilities, and disclose instruments and transactions
subject to master netting or similar agreements. These disclosure requirements
are intended to help investors and other financial statement users better assess
the effect or potential effect of offsetting arrangements on a fund's financial
position. In addition, Accounting Standards Update No. 2013-1 "Clarifying the
Scope of Offsetting Assets and Liabilities" ("ASU 2013-1"), specifies exactly
which transactions are subject to offsetting disclosures. The scope of the
disclosure requirements is limited to derivative instruments, repurchase
agreements and reverse repurchase agreements, and securities borrowing and
securities lending transactions.
For financial reporting purposes, the Fund does not offset financial assets and
financial liabilities that are subject to master netting arrangements ("MNAs")
or similar agreements on the Statement of Assets and Liabilities. MNAs provide
the right, in the event of default (including bankruptcy and insolvency) for the
non-defaulting Counterparty to liquidate the collateral and calculate the net
exposure to the defaulting party or request additional collateral.
At June 30, 2015, derivative assets and liabilities (by type) on a gross basis
are as follows:
Gross Amounts
not Offset in the
Statement of
Net Amounts of Assets and Liabilities
Gross Amounts Assets Presented ------------------------
Gross amounts of Offset in the in the Statement Collateral
Recognized Statement of Assets of Assets and Financial Amounts
Assets and Liabilities Liabilities Instruments Received Net Amount
--------------------------------------------------------------------------------------------------------------------------
Forward Foreign
Currency Contracts* $ 3,533,800 $ -- $ 3,533,800 $ (31,954) $ -- $ 3,501,846
Page 22
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
JUNE 30, 2015 (UNAUDITED)
Gross Amounts
not Offset in the
Net Amounts of Statement of
Liabilities Assets and Liabilities
Gross Amounts Presented ------------------------
Gross Amounts of Offset in the in the Statement Collateral
Recognized Statement of Assets of Assets and Financial Amounts
Liabilities and Liabilities Liabilities Instruments Pledged Net Amount
--------------------------------------------------------------------------------------------------------------------------
Forward Foreign
Currency Contracts* $ (777,997) $ -- $ (777,997) $ 31,954 $ -- $ (746,043)
* The respective Counterparties for each contract are disclosed in the
Forward Foreign Currency Contracts table in the Portfolio of Investments.
E. 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 investments and items of income and expense are
translated on the respective dates of such transactions. Unrealized gains and
losses on assets and liabilities, other than investments in securities, which
result from changes in foreign currency exchange rates have been included in
"Net change in unrealized appreciation (depreciation) on foreign currency
translation" on the Statement of Operations. Unrealized gains and losses on
investments in securities which result from changes in foreign exchange rates
are included with fluctuations arising from changes in market price and are
shown in "Net change in unrealized appreciation (depreciation) on investments"
on the Statement of Operations. 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. The portion of foreign
currency gains and losses related to fluctuation in exchange rates between the
initial purchase trade date and subsequent sale trade date is included in "Net
realized gain (loss) on foreign currency transactions" on the Statement of
Operations.
F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
The Fund will distribute to holders of its Common Shares monthly dividends of
all or a portion of its net income after the payment of interest and dividends
in connection with leverage, if any. Distributions of any long-term capital
gains earned by the Fund are distributed at least annually. Distributions will
automatically be reinvested into additional Common Shares pursuant to the Fund's
Dividend Reinvestment Plan unless cash distributions are elected by the
shareholder.
Distributions from net investment income and realized capital gains are
determined in accordance with income tax regulations, which may differ from U.S.
GAAP. Certain capital accounts in the financial statements are periodically
adjusted for permanent differences in order to reflect their tax character.
These permanent differences are primarily due to the varying treatment of income
and gain/loss on portfolio securities held by the Fund and have no impact on net
assets or NAV per share. Temporary differences, which arise from recognizing
certain items of income, expense and gain/loss in different periods for
financial statement and tax purposes, will reverse at some time in the future.
The tax character of distributions paid during the fiscal year ended December
31, 2014 was as follows:
Distributions paid from:
Ordinary income................................. $ 12,497,422
Capital gain.................................... 2,068,787
Return of capital............................... 9,111,667
As of December 31, 2014, the distributable earnings and net assets on a tax
basis were as follows:
Undistributed ordinary income................... $ --
Undistributed capital gains..................... --
-------------
Total undistributed earnings.................... --
Accumulated capital and other losses............ (933,366)
Net unrealized appreciation (depreciation)...... (28,800,343)
-------------
Total accumulated earnings (losses)............. (29,733,709)
Other........................................... (44,825)
Paid-in capital................................. 269,585,933
-------------
Net assets...................................... $ 239,807,399
=============
Page 23
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
JUNE 30, 2015 (UNAUDITED)
G. INCOME AND OTHER TAXES
The Fund intends to continue to qualify as a regulated investment company by
complying with the requirements under Subchapter M of the Internal Revenue Code
of 1986, as amended (the "Code"), which includes distributing substantially all
of its net investment income and net realized gains to shareholders.
Accordingly, no provision has been made for federal or state income taxes.
However, due to the timing and amount of distributions, the Fund may be subject
to an excise tax of 4% of the amount by which approximately 98% of the Fund's
taxable income exceeds the distributions from such taxable income for the
calendar year.
Certain countries assess a capital gains tax on securities sold in their local
markets. This tax is accrued as the securities in these foreign markets
appreciate in value and is paid at the time of sale to the extent a capital gain
is realized. Taxes accrued on securities in an unrealized appreciation position
are included in "Net change in unrealized appreciation (depreciation)" on the
Statement of Operations. The capital gains tax paid on securities sold is
included in "Other" expenses on the Statement of Operations.
The Fund intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward indefinitely following the
year of the loss and offset such loss against any future realized capital gains.
The Fund is subject to certain limitations under U.S. tax rules on the use of
capital loss carryforwards and net unrealized built-in losses. These limitations
apply when there has been a 50% change in ownership. At December 31, 2014, the
Fund had no non-expiring capital loss carryforwards for federal income tax
purposes.
Certain losses realized during the current fiscal year may be deferred and
treated as occurring on the first day of the following fiscal year for federal
income tax purposes. For the fiscal year ended December 31, 2014, the Fund
incurred and elected to defer capital losses of $933,366.
The Fund is subject to accounting standards that establish a minimum threshold
for recognizing, and a system for measuring, the benefits of a tax position
taken or expected to be taken in a tax return. Taxable years ended 2011, 2012,
2013 and 2014 remain open to federal and state audit. As of June 30, 2015,
management has evaluated the application of these standards to the Fund and has
determined that no provision for income tax is required in the Fund's financial
statements for uncertain tax positions.
H. EXPENSES
The Fund will pay all expenses directly related to its operations.
3. INVESTMENT ADVISORY FEE, AFFILIATED TRANSACTIONS AND OTHER FEE ARRANGEMENTS
First Trust, the investment advisor to the Fund, is a limited partnership with
one limited partner, Grace Partners of DuPage L.P., and one general partner, The
Charger Corporation. The Charger Corporation is an Illinois corporation
controlled by James A. Bowen, Chief Executive Officer of First Trust. First
Trust is responsible for the ongoing monitoring of the Fund's investment
portfolio, managing the Fund's business affairs and providing certain
administrative services necessary for the management of the Fund. For these
services, First Trust is entitled to a monthly fee calculated at an annual rate
of 1.00% of the Fund's Managed Assets. First Trust also provides fund reporting
services to the Fund for a flat annual fee in the amount of $9,250.
Aberdeen Asset Management Inc. ("Aberdeen" or the "Sub-Advisor") serves as the
Fund's sub-advisor and manages the Fund's portfolio subject to First Trust's
supervision. The Sub-Advisor receives a monthly portfolio management fee
calculated at an annual rate of 0.50% of the Fund's Managed Assets that is paid
by First Trust out of its investment advisory fee.
BNY Mellon Investment Servicing (US) Inc. ("BNYM IS") serves as the Fund's
Administrator, Fund Accountant and Transfer Agent in accordance with certain fee
arrangements. As administrator and fund accountant, BNYM IS is responsible for
providing certain administrative and accounting services to the Fund, including
maintaining the Fund's books of account, records of the Fund's securities
transactions, and certain other books and records. As transfer agent, BNYM IS is
responsible for maintaining shareholder records for the Fund. The Bank of New
York Mellon ("BNYM") serves as the Fund's Custodian in accordance with certain
fee arrangements. As custodian, BNYM is responsible for custody of the Fund's
assets.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor
or any of their affiliates ("Independent Trustees") is paid a fixed annual
retainer that is allocated pro rata among each fund in the First Trust Fund
Complex based on net assets. Each Independent Trustee is also paid an annual per
fund fee that varies based on whether the fund is a closed-end or other actively
managed fund, or is an index fund.
Additionally, the Lead Independent Trustee and the Chairmen of the Audit
Committee, Nominating and Governance Committee and Valuation Committee are paid
annual fees to serve in such capacities, with such compensation allocated pro
rata among each fund in the First Trust Fund Complex based on net assets.
Trustees are reimbursed for travel and out-of-pocket expenses in connection with
all meetings. The Lead Independent Trustee and Committee Chairmen rotate every
three years. The officers and "Interested" Trustee receive no compensation from
the Trust for acting in such capacities.
Page 24
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
JUNE 30, 2015 (UNAUDITED)
4. PURCHASES AND SALES OF SECURITIES
Cost of purchases and proceeds from sales of securities, other than U.S.
government obligations and short-term obligations, for the six months ended June
30, 2015, were $99,824,424 and $102,924,468, respectively.
5. DERIVATIVE TRANSACTIONS
The following table presents the type of derivative held by the Fund at June 30,
2015, the primary underlying risk exposure and location of these instruments as
presented on the Statement of Assets and Liabilities.
ASSET DERIVATIVES LIABILITY DERIVATIVES
---------------------------------------- ----------------------------------------
DERIVATIVE STATEMENTS OF ASSETS AND STATEMENT OF ASSETS AND
INSTRUMENT RISK EXPOSURE LIABILITIES LOCATION VALUE LIABILITIES LOCATION VALUE
------------------ --------------- ------------------------ -------------- ----------------------- ---------------
Unrealized appreciation Unrealized depreciation
Forward foreign on forward foreign on forward foreign
currency contracts Currency Risk currency contracts $ 3,533,800 currency contracts $ 777,997
The following table presents the amount of net realized gain (loss) and change
in net unrealized appreciation (depreciation) recognized for the six months
ended June 30, 2015, on derivative instruments, as well as the primary
underlying risk exposure associated with each instrument.
STATEMENT OF OPERATIONS LOCATION EQUITY RISK
--------------------------------------------------------------------------------
CURRENCY RISK EXPOSURE
Net realized gain (loss) on forward foreign currency contracts $ 180,058
Net change in unrealized appreciation (depreciation) on forward
foreign currency contracts 847,754
During the six months ended June 30, 2015, the amount of notional values of
forward foreign currency contracts opened and closed were $370,643,314 and
$388,222,384, respectively.
6. BORROWINGS
The Fund has a credit agreement with The Bank of Nova Scotia, which provides for
a revolving credit facility to be used as leverage for the Fund. The revolving
credit facility provides for a secured line of credit for the Fund where Fund
assets are pledged against advances made to the Fund. Under the requirements of
the 1940 Act, the Fund, immediately after any such borrowings, must have an
"asset coverage" of at least 300% (33-1/3% of the Fund's total assets after
borrowings). The total commitment under the facility is up to $120,000,000. As
of June 30, 2015, the Fund had three loans outstanding under the revolving
credit facility totaling $96,507,481. The three loans, which are all LIBOR
loans, bear interest based on the adjusted LIBOR rate and are in the amounts of
$60,000,000, $26,000,000 and $10,507,481 (the U.S. Dollar equivalent of a
(euro)9,425,000 loan). For the six months ended June 30, 2015, the average
amount outstanding was $97,098,071. The high and low annual interest rates
during the year ended June 30, 2015 were 0.93% and 0.75%, respectively, and the
weighted average interest rate was 0.91%. The weighted average interest rate at
June 30, 2015 was 0.91%. The interest rate under the credit facility is equal to
the 1-month LIBOR plus 0.75%. The Fund pays a commitment fee of 0.15% on any day
that the loan balances are less than 60% of the total commitment. These fees are
included in "Interest and fees on outstanding loans" on the Statement of
Operations. The revolving credit facility is scheduled to expire on December 29,
2015, but can be renewed annually.
7. INDEMNIFICATION
The Fund has a variety of indemnification obligations under contracts with its
service providers. The Fund's maximum exposure under these arrangements is
unknown. However, the Fund has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.
8. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events to the Fund through
the date the financial statements were issued, and has determined that there
were the following subsequent events:
On July 20, 2015, the Fund declared a distribution of $0.09 per share to Common
Shareholders of record on August 5, 2015, payable August 17, 2015.
Page 25
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ADDITIONAL INFORMATION
--------------------------------------------------------------------------------
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
JUNE 30, 2015 (UNAUDITED)
DIVIDEND REINVESTMENT PLAN
If your Common Shares are registered directly with the Fund or if you hold your
Common Shares with a brokerage firm that participates in the Fund's Dividend
Reinvestment Plan (the "Plan"), unless you elect, by written notice to the Fund,
to receive cash distributions, all dividends, including any capital gain
distributions, on your Common Shares will be automatically reinvested by BNY
Mellon Investment Servicing (US) Inc. (the "Plan Agent"), in additional Common
Shares under the Plan. If you elect to receive cash distributions, you will
receive all distributions in cash paid by check mailed directly to you by the
Plan Agent, as the dividend paying agent.
If you decide to participate in the Plan, the number of Common Shares you will
receive will be determined as follows:
(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.
You may elect to opt-out of or withdraw from the Plan at any time by giving
written notice to the Plan Agent, or by telephone at (866) 340-1104, in
accordance with such reasonable requirements as the Plan Agent and the Fund may
agree upon. If you withdraw or the Plan is terminated, you will receive a
certificate for each whole share in your account under the Plan, and you will
receive a cash payment for any fraction of a share in your account. If you wish,
the Plan Agent will sell your shares and send you the proceeds, minus brokerage
commissions.
The Plan Agent maintains all Common Shareholders' accounts in the Plan and gives
written confirmation of all transactions in the accounts, including information
you may need for tax records. Common Shares in your account will be held by the
Plan Agent in non-certificated form. The Plan Agent will forward to each
participant any proxy solicitation material and will vote any shares so held
only in accordance with proxies returned to the Fund. Any proxy you receive will
include all Common Shares you have received under the Plan.
There is no brokerage charge for reinvestment of your dividends or distributions
in Common Shares. However, all participants will pay a pro rata share of
brokerage commissions incurred by the Plan Agent when it makes open market
purchases.
Automatically reinvesting dividends and distributions does not mean that you do
not have to pay income taxes due upon receiving dividends and distributions.
Capital gains and income are realized although cash is not received by you.
Consult your financial advisor for more information.
If you hold your Common Shares with a brokerage firm that does not participate
in the Plan, you will not be able to participate in the Plan and any dividend
reinvestment may be effected on different terms than those described above.
The Fund reserves the right to amend or terminate the Plan if in the judgment of
the Board of Trustees the change is warranted. There is no direct service charge
to participants in the Plan; however, the Fund reserves the right to amend the
Plan to include a service charge payable by the participants. Additional
information about the Plan may be obtained by writing BNY Mellon Investment
Servicing (US) Inc., 301 Bellevue Parkway, Wilmington, Delaware 19809.
--------------------------------------------------------------------------------
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Fund uses to determine how
to vote proxies and information on how the Fund voted proxies relating to
portfolio investments during the most recent 12-month period ended June 30 is
available (1) without charge, upon request, by calling (800) 988-5891; (2) on
the Fund's website located at http://www.ftportfolios.com; and (3) on the
Securities and Exchange Commission's ("SEC") website located at
http://www.sec.gov.
Page 26
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ADDITIONAL INFORMATION (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
JUNE 30, 2015 (UNAUDITED)
PORTFOLIO HOLDINGS
The Fund files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q
are available (1) by calling (800) 988-5891; (2) on the Fund's website located
at http://www.ftportfolios.com; (3) on the SEC's website at http://www.sec.gov;
and (4) for review and copying at the SEC's Public Reference Room ("PRR") in
Washington, DC. Information regarding the operation of the PRR may be obtained
by calling (800) SEC-0330.
SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS
The Joint Annual Meeting of Shareholders of the Common Shares of Macquarie/First
Trust Global Infrastructure/Utilities Dividend & Income Fund, First Trust Energy
Income and Growth Fund, First Trust Enhanced Equity Income Fund, First
Trust/Aberdeen Global Opportunity Income Fund, First Trust Mortgage Income Fund,
First Trust Strategic High Income Fund II, First Trust/Aberdeen Emerging
Opportunity Fund, First Trust Specialty Finance and Financial Opportunities
Fund, First Trust Dividend and Income Fund, First Trust High Income Long/Short
Fund, First Trust Energy Infrastructure Fund, First Trust MLP and Energy Income
Fund, First Trust Intermediate Duration Preferred & Income Fund and First Trust
New Opportunities MLP and Energy Fund was held on April 20, 2015 (the "Annual
Meeting"). At the Annual Meeting, Richard E. Erickson and Thomas R. Kadlec were
elected by the Common Shareholders of the First Trust/Aberdeen Global
Opportunity Income Fund as a Class II Trustees for a three-year term expiring at
the Fund's Annual Meeting of Shareholders in 2018. The number of votes cast for
Mr. Erickson was 13,584,026, the number of votes against was 812,111 and the
number of broker non-votes was 3,014,066. The number of votes cast for Mr.
Kadlec was 13,591,973, the number of votes against was 804,164 and the number of
broker non-votes was 3,014,066. James A. Bowen, Robert F. Keith and Niel B.
Nielson are the other current and continuing Trustees.
ADVISORY AND SUB-ADVISORY AGREEMENTS
BOARD CONSIDERATION REGARDING CONTINUATION OF INVESTMENT MANAGEMENT AND
SUB-ADVISORY AGREEMENTS
The Board of Trustees of First Trust/Aberdeen Global Opportunity Income Fund
(the "Fund"), including the Independent Trustees, unanimously approved the
continuation of the Investment Management Agreement (the "Advisory Agreement")
between the Fund and First Trust Advisors L.P. (the "Advisor") and the
Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement" and together
with the Advisory Agreement, the "Agreements") among the Fund, the Advisor and
Aberdeen Asset Management Inc. (the "Sub-Advisor"), at a meeting held on June
16, 2015. The Board determined that the continuation of the Agreements is in the
best interests of the Fund in light of the extent and quality of the services
provided and such other matters as the Board considered to be relevant in the
exercise of its reasonable business judgment.
To reach this determination, the Board considered its duties under the
Investment Company Act of 1940, as amended (the "1940 Act"), as well as under
the general principles of state law in reviewing and approving advisory
contracts; the requirements of the 1940 Act in such matters; the fiduciary duty
of investment advisors with respect to advisory agreements and compensation; the
standards used by courts in determining whether investment company boards have
fulfilled their duties; and the factors to be considered by the Board in voting
on such agreements. At meetings held on April 20, 2015 and June 16, 2015, the
Board, including the Independent Trustees, reviewed materials provided by the
Advisor and the Sub-Advisor responding to requests for information from counsel
to the Independent Trustees that, among other things, outlined the services
provided by the Advisor and the Sub-Advisor (including the relevant personnel
responsible for these services and their experience); the advisory and
sub-advisory fees for the Fund as compared to fees charged to other clients of
the Advisor and the Sub-Advisor and as compared to fees charged to a peer group
of funds selected by Management Practice, Inc. ("MPI"), an independent source
(the "MPI Peer Group"); expenses of the Fund as compared to expense ratios of
the funds in the MPI Peer Group; performance information for the Fund; the
nature of expenses incurred in providing services to the Fund and the potential
for economies of scale, if any; financial data on the Advisor and the
Sub-Advisor; any fall-out benefits to the Advisor and the Sub-Advisor; and
information on the Advisor's and the Sub-Advisor's compliance programs. The
Board reviewed initial materials with the Advisor at a special meeting held on
April 20, 2015, at which the Independent Trustees and their counsel met
separately to discuss the information provided by the Advisor and the
Sub-Advisor. Following the April meeting, independent legal counsel on behalf of
the Independent Trustees requested certain clarifications and supplements to the
materials provided, and those were considered at an executive session of the
Independent Trustees and independent legal counsel held prior to the June 16,
2015 meeting, as well as at the meeting. The Board applied its business judgment
to determine whether the arrangements between the Fund and the Advisor and among
the Fund, the Advisor and the Sub-Advisor are reasonable business arrangements
from the Fund's perspective as well as from the perspective of shareholders. The
Board considered that shareholders chose to invest or remain invested in the
Fund knowing that the Advisor and the Sub-Advisor manage the Fund.
In reviewing the Agreements, the Board considered the nature, extent and quality
of services provided by the Advisor and the Sub-Advisor under the Agreements.
With respect to the Advisory Agreement, the Board considered that the Advisor is
responsible for the overall management and administration of the Fund and
reviewed the services provided by the Advisor to the Fund, including the
oversight of the Sub-Advisor. The Board noted the compliance program that had
been developed by the Advisor and considered that it includes a robust program
for monitoring the Sub-Advisor's compliance with the 1940 Act and the Fund's
investment objectives and policies. The Board considered the significant asset
Page 27
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ADDITIONAL INFORMATION (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
JUNE 30, 2015 (UNAUDITED)
growth of the First Trust Fund Complex and the Advisor's concomitant investment
in infrastructure and personnel dedicated to the First Trust funds. With respect
to the Sub-Advisory Agreement, the Board noted the background and experience of
the Sub-Advisor's portfolio management team. The Board reviewed the materials
provided by the Sub-Advisor and considered the services that the Sub-Advisor
provides to the Fund, including the Sub-Advisor's day-to-day management of the
Fund's investments. In light of the information presented and the considerations
made, the Board concluded that the nature, extent and quality of services
provided to the Fund by the Advisor and the Sub-Advisor under the Agreements
have been and are expected to remain satisfactory and that the Sub-Advisor,
under the oversight of the Advisor, has managed the Fund consistent with its
investment objectives and policies.
The Board considered the advisory and sub-advisory fees paid under the
Agreements. The Board considered the advisory fees charged by the Advisor to
similar funds and other non-fund clients, noting that the Advisor provides
advisory services to another closed-end fund sub-advised by the Sub-Advisor and
certain separately managed accounts that may have investment objectives and
policies similar to the Fund's. The Board noted that the Advisor charges the
same advisory fee rate to the Fund and the other closed-end fund sub-advised by
the Sub-Advisor and a lower advisory fee rate to the separately managed
accounts. The Board noted the Advisor's statement that the nature of the
services provided to the separately managed accounts is not comparable to those
provided to the Fund. The Board considered the sub-advisory fee and how it
relates to the Fund's overall advisory fee structure and noted that the
sub-advisory fee is paid by the Advisor from its advisory fee. The Board also
considered information provided by the Sub-Advisor as to the fees it charges to
other clients, noting that the Sub-Advisor does not manage any other funds
directly comparable to the Fund, but that the sub-advisory fee rate is the same
as that received from the Advisor for the other closed-end fund for which it
serves as sub-advisor, and is generally lower than or equal to the fees the
Sub-Advisor charges to the other North American closed-end fixed-income funds
and a separate account with a global bond mandate that it manages. In addition,
the Board reviewed data prepared by MPI showing the advisory fee and expense
ratio of the Fund as compared to the advisory fees and expense ratios of the MPI
Peer Group. The Board discussed with representatives of the Advisor the
limitations in creating a relevant peer group for the Fund, including that (i)
the Fund is unique in its composition, which makes assembling peers with similar
strategies and asset mix difficult; (ii) peer funds may use different amounts
and types of leverage with different costs associated with them or may use no
leverage; (iii) none of the peer funds employ an advisor/sub-advisor management
structure; (iv) some of the peer funds are larger than the Fund, which causes
the Fund's fixed expenses to be higher on a percentage basis as compared to the
larger peer funds; and (v) peer funds may have fewer investments in foreign
assets as compared to the Fund, which typically have higher custody costs. The
Board took these limitations into account in considering the peer data. In
reviewing the peer data, the Board noted that the Fund's advisory fee, based on
average net assets, was above the median of the MPI Peer Group.
The Board also considered performance information for the Fund, noting that the
performance information included the Fund's quarterly performance report, which
is part of the process that the Board has established for monitoring the Fund's
performance and portfolio risk on an ongoing basis. The Board determined that
this process continues to be effective for reviewing the Fund's performance. In
addition to the Board's ongoing review of performance, the Board also reviewed
data prepared by MPI comparing the Fund's performance for periods ended December
31, 2014 to the performance of the MPI Peer Group and to a blended benchmark
index. In reviewing the Fund's performance as compared to the performance of the
MPI Peer Group, the Board took into account the limitations described above with
respect to creating a relevant peer group for the Fund. The Board also
considered data from MPI on the Fund's annual distribution rate as of December
31, 2014 as compared to the MPI Peer Group and the Fund's leverage costs versus
the leverage costs of applicable funds in the MPI Peer Group. The Board
considered information provided by the Advisor on the impact of leverage on the
Fund's returns as well. In addition, the Board compared the Fund's
premium/discount over the past eight quarters to the average and median
premium/discount over the same period of a peer group selected by the Advisor,
as well as data on the average premium/discount for 2014 for the funds in the
MPI Peer Group, and considered factors that may impact a fund's
premium/discount.
On the basis of all the information provided on the fees, expenses and
performance of the Fund, the Board concluded that the advisory and sub-advisory
fees were reasonable and appropriate in light of the nature, extent and quality
of services provided by the Advisor and the Sub-Advisor under the Agreements.
The Board noted that the Advisor has made and continues to make significant
investments in personnel and infrastructure and considered whether fee levels
reflect any economies of scale for the benefit of shareholders. The Board
determined that due to the Fund's closed-end structure, the potential for
realization of economies of scale as Fund assets grow was not a material factor
to be considered. The Board also considered the costs of the services provided
and profits realized by the Advisor from serving as investment advisor to the
Fund for the twelve months ended December 31, 2014, as well as product-line
profitability data for the same period, as set forth in the materials provided
to the Board. The Board noted the inherent limitations in the profitability
analysis, and concluded that the pre-tax profits estimated to have been realized
by the Advisor in connection with the management of the Fund were not
unreasonable. In addition, the Board considered fall-out benefits described by
the Advisor that may be realized from its relationship with the Fund, including
the Advisor's compensation for fund reporting services pursuant to a separate
Fund Reporting Services Agreement.
The Board considered the Sub-Advisor's representation that because it manages
the Fund in a similar fashion to other accounts it is able to achieve economies
of scale through relationships with brokers, administrative systems and other
operational efficiencies and that while it expects operating costs in general to
continue to rise, it continues to expect to experience the benefits of economies
of scale. The Board considered that the sub-advisory fee rate was negotiated at
Page 28
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ADDITIONAL INFORMATION (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
JUNE 30, 2015 (UNAUDITED)
arm's length between the Advisor and the Sub-Advisor, an unaffiliated third
party. The Board also considered data provided by the Sub-Advisor as to the
profitability of the Sub-Advisory Agreement to the Sub-Advisor. The Board noted
the inherent limitations in the profitability analysis and concluded that the
profitability analysis for the Advisor was more relevant, although the estimated
profitability of the Sub-Advisory Agreement appeared to be not unreasonable in
light of the services provided to the Fund. The Board considered fall-out
benefits that may be realized by the Sub-Advisor from its relationship with the
Fund, and noted that while the Sub-Advisor may enter into soft-dollar
arrangements, the Fund invests mainly in fixed-income securities, and there were
no credits generated by the Fund from any commission sharing arrangements.
Based on all of the information considered and the conclusions reached, the
Board, including the Independent Trustees, unanimously determined that the terms
of the Agreements continue to be fair and reasonable and that the continuation
of the Agreements is in the best interests of the Fund. No single factor was
determinative in the Board's analysis.
RISK CONSIDERATIONS
Risks are inherent in all investing. The following summarizes some, but not all,
of the risks that should be considered for the Fund. For additional information
about the risks associated with investing in the Fund, please see the Fund's
prospectus and statement of additional information, as well as other Fund
regulatory filings.
INVESTMENT AND MARKET RISK: An investment in the Fund's Common Shares is subject
to investment risk, including the possible loss of the entire principal
invested. An investment in Common Shares represents an indirect investment in
the securities owned by the Fund, which include a global bond portfolio of
investment grade and below-investment grade government and corporate debt
securities. The value of these securities, like other market investments, may
move up or down, sometimes rapidly and unpredictably. Common Shares at any point
in time may be worth less than the original investment, even after taking into
account the reinvestment of Fund dividends and distributions. Security prices
can fluctuate for several reasons including the general condition of the bond
market, or when political or economic events affecting the issuers occur. When
the Advisor or Sub-Advisor determines that it is temporarily unable to follow
the Fund's investment strategy or that it is impractical to do so (such as when
a market disruption event has occurred and trading in the securities is
extremely limited or absent), the Fund may take temporary defensive positions.
NON-INVESTMENT GRADE SECURITIES RISK: The Fund may invest up to 60% of its
Managed Assets in non-investment grade securities. Non-investment grade
securities are rated below "Baa3" by Moody's Investors Service, Inc., below
"BBB-" by Standard & Poor's, or comparably rated by another nationally
recognized statistical rating organization or, if unrated, determined by the
Sub-Advisor to be of comparable credit quality. Non-investment grade debt
instruments are commonly referred to as "high-yield" or "junk" bonds and are
considered speculative with respect to the issuer's capacity to pay interest and
repay principal and are susceptible to default or decline in market value due to
adverse economic and business developments. The market values for high-yield
securities tend to be very volatile, and these securities are less liquid than
investment grade debt securities.
EMERGING MARKETS RISK: The Fund may invest in fixed-income securities of issuers
located in countries considered to be emerging markets. Investments in such
securities are considered speculative. In addition to the general risks of
investing in non-U.S. securities, heightened risks of investing in emerging
markets securities include: smaller market capitalization of securities markets,
which may suffer periods of relative illiquidity; significant price volatility;
restrictions on foreign investment; and possible restrictions on repatriation of
investment income and capital. Furthermore, foreign investors may be required to
register the proceeds of sales, and future economic or political crises could
lead to price controls, forced mergers, expropriation or confiscatory taxation,
seizure, nationalization or creation of government monopolies. The currencies of
emerging market countries may experience significant declines against the U.S.
dollar, and devaluation may occur subsequent to investments in these currencies
by the Fund. Inflation and rapid fluctuations in inflation rates have had, and
may continue to have, negative effects on the economies and securities markets
of certain emerging market countries. The risks associated with investing in
emerging market securities also include: greater political uncertainties,
dependence on international trade or development assistance, overburdened
infrastructures and environmental problems.
FIXED-INCOME SECURITIES RISK: Debt securities, including high yield securities,
are subject to certain risks, including: (i) issuer risk, which is the risk that
the value of fixed-income securities may decline for a number of reasons which
directly relate to the issuer, such as management performance, financial
leverage and reduced demand for the issuer's goods and services; (ii)
reinvestment risk, which is the risk that income from the Fund's portfolio will
decline if the Fund invests the proceeds from matured, traded or called bonds at
market interest rates that are below the Fund portfolio's current earnings rate;
(iii) prepayment risk, which is the risk that 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 in lower yielding
securities; and (iv) credit risk, which is the risk that a security in the
Fund's portfolio will decline in price or the issuer fails to make interest
payments when due because the issuer of the security experiences a decline in
its financial status.
Page 29
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ADDITIONAL INFORMATION (CONTINUED)
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FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
JUNE 30, 2015 (UNAUDITED)
INTEREST RATE RISK: The Fund's portfolio is also subject to interest rate risk.
Interest rate risk is the risk that fixed-income securities will decline in
value because of changes in market interest rates. Investments in debt
securities with long-term maturities may experience significant price declines
if long-term interest rates increase.
NON-U.S. ISSUER RISK: Investments in the securities and instruments of non-U.S.
issuers involve certain considerations and risks not ordinarily associated with
investments in securities and instruments of U.S. issuers. Non-U.S. companies
are not generally subject to uniform accounting, auditing and financial
standards and requirements comparable to those applicable to U.S. companies.
Non-U.S. securities exchanges, brokers and listed companies may be subject to
less government supervision and regulation than exists in the United States.
Dividend and interest income may be subject to withholding and other non-U.S.
taxes, which may adversely affect the net return on such investments. There may
be difficulty in obtaining or enforcing a court judgment abroad. Non-U.S.
investments may also involve risks associated with the level of currency
exchange rates, less complete financial information about the issuers, less
market liquidity, more market volatility and political instability. Future
political and economic developments, the possible seizure or nationalization of
non-U.S. holdings, the possible establishment of exchange controls or freezes on
the convertibility of currency, or the adoption of other governmental
restrictions might adversely affect an investment in non-U.S. securities.
EUROPE RISK: The Fund invests in securities issued by companies operating in
Europe. The Fund is therefore subject to certain risks associated specifically
with Europe. A significant number of countries in Europe are member states in
the European Union (the "EU"), and the member states no longer control their own
monetary policies by directing independent interest rates for their currencies.
In these member states, the authority to direct monetary policies, including
money supply and official interest rates for the Euro, is exercised by the
European Central Bank. In addition, the continued implementation of the EU
provisions and recent rapid political and social change throughout Europe make
the extent and nature of future economic development in the region and their
effect on securities issued by European companies impossible to predict. The
European sovereign debt crisis has resulted in a weakened Euro and has put into
question the future financial prospects of the European region as a whole.
CURRENCY RISK: The value of securities denominated or quoted in foreign
currencies may be adversely affected by fluctuations in the relative currency
exchange rates and by exchange control regulations. The Fund's investment
performance may be negatively affected by a devaluation of a currency in which
the Fund's investments are denominated or quoted. Further, the Fund's investment
performance may be significantly affected, either positively or negatively, by
currency exchange rates because the U.S. dollar value of securities denominated
or quoted in another currency will increase or decrease in response to changes
in the value of such currency in relation to the U.S. dollar. While certain of
the Fund's non-U.S. dollar-denominated securities may be hedged into U.S.
dollars, hedging may not alleviate all currency risks.
LEVERAGE RISK: The use of leverage results in additional risks and can magnify
the effect of any losses. The funds borrowed pursuant to a leverage borrowing
program constitute a substantial lien and burden by reason of their prior claim
against the income of the Fund and against the net assets of the Fund in
liquidation. The rights of lenders to receive payments of interest on and
repayments of principal on any borrowings made by the Fund under a leverage
borrowing program are senior to the rights of holders of Common Shares with
respect to payment of dividends or upon liquidation. If the Fund is not in
compliance with certain credit facility provisions, the Fund may not be
permitted to declare dividends or other distributions, including dividends and
distributions with respect to Common Shares or purchase Common Shares.
GOVERNMENT SECURITIES RISK: The ability of a government issuer, especially in an
emerging market country, to make timely and complete payments on its debt
obligations will be strongly influenced by the government issuer's balance of
payments, including export performance, its access to international credits and
investments, fluctuations of interest rates and the extent of its foreign
reserves. A country whose exports are concentrated in a few commodities or whose
economy depends on certain strategic imports could be vulnerable to fluctuations
in international prices of these commodities or imports. To the extent that a
country receives payment for its exports in currencies other than U.S. dollars,
its ability to make debt payments denominated in U.S. dollars could be adversely
affected. If a government issuer cannot generate sufficient earnings from
foreign trade to service its external debt, it may need to depend on continuing
loans and aid from foreign governments, commercial banks, and multinational
organizations. There are no bankruptcy proceedings similar to those in the
United States by which defaulted government debt may be collected. Additional
factors that may influence a government issuer's ability or willingness to
service debt include, but are not limited to, a country's cash flow situation,
the availability of sufficient foreign exchange on the date a payment is due,
the relative size of its debt service burden to the economy as a whole, and the
issuer's policy towards the International Monetary Fund, the International Bank
for Reconstruction and Development and other international agencies to which a
government debtor may be subject.
NON-U.S. GOVERNMENT SECURITIES RISK: Economies and social and political climates
in individual countries may differ unfavorably from the United States. Non-U.S.
economies may have less favorable rates of growth of gross domestic product,
rates of inflation, currency valuation, capital reinvestment, resource
self-sufficiency and balance of payments positions. Many countries have
experienced extremely high rates of inflation for many years. Unanticipated
economic, political and social developments may also affect the values of the
Fund's investments and limit the availability of additional investments in such
countries. Furthermore, such developments may significantly disrupt the
financial markets or interfere with the Fund's ability to enforce its rights
against non-U.S. government issuers. Investments in debt instruments of issuers
Page 30
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ADDITIONAL INFORMATION (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
JUNE 30, 2015
(UNAUDITED)
located in emerging market countries are considered speculative. Heightened
risks of investing in emerging markets government debt include: smaller market
capitalization of securities markets, which may suffer periods of relative
illiquidity; significant price volatility; restrictions on foreign investment;
and possible repatriation of investment income and capital. Furthermore, foreign
investors may be required to register the proceeds of sales and future economic
or political crises could lead to price controls, forced mergers, expropriation
or confiscatory taxation, seizure, nationalization or creation of government
monopolies. The currencies of emerging market countries may experience
significant declines against the U.S. dollar, and devaluation may occur
subsequent to investments in these currencies by the Fund. Inflation and rapid
fluctuations in inflation rates have had, and may continue to have, negative
effects on the economies and securities markets of certain emerging market
countries.
Page 31
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FIRST TRUST
INVESTMENT ADVISOR
First Trust Advisors L.P.
120 E. Liberty Drive, Suite 400
Wheaton, IL 60187
INVESTMENT SUB-ADVISOR
Aberdeen Asset Management Inc.
1735 Market Street, 32nd Floor
Philadelphia, PA 19103
ADMINISTRATOR,
FUND ACCOUNTANT &
TRANSFER AGENT
BNY Mellon Investment Servicing (US) Inc.
301 Bellevue Parkway
Wilmington, DE 19809
CUSTODIAN
The Bank of New York Mellon
101 Barclay Street, 20th Floor
New York, NY 10286
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
111 S. Wacker Drive
Chicago, IL 60606
LEGAL COUNSEL
Chapman and Cutler LLP
111 W. Monroe Street
Chicago, IL 60603
[BLANK BACK COVER]
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 registrant's second fiscal quarter
of 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. 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.
(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/ Mark R. Bradley
----------------------------------------
Mark R. Bradley, President and
Chief Executive Officer
(principal executive officer)
Date: August 14, 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: August 14, 2015
-------------------
By (Signature and Title)* /s/ James M. Dykas
----------------------------------------
James M. Dykas, Treasurer,
Chief Financial Officer and
Chief Accounting Officer
(principal financial officer)
Date: August 14, 2015
-------------------
* Print the name and title of each signing officer under his or her signature.