UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act file number 811-21636
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First Trust/Aberdeen Global Opportunity Income Fund
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(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
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(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
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(Name and address of agent for service)
Registrant's telephone number, including area code: (630) 765-8000
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Date of fiscal year end: December 31
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Date of reporting period: September 30, 2014
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC
20549. The OMB has reviewed this collection of information under the clearance
requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS. The Schedule(s) of Investments is attached
herewith.
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a)
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES - 107.4%
ARGENTINA - 2.6%
4,940,000 Argentina Bonar Bonds (USD) ............. 7.00% 04/17/17 $ 4,275,822
2,700,000 Argentina Bonar Bonds (USD) ............. 8.75% 05/07/24 2,354,545
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6,630,367
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ARMENIA - 1.5%
3,450,000 Republic of Armenia (USD) (b)............ 6.00% 09/30/20 3,588,000
250,000 Republic of Armenia (USD) ............... 6.00% 09/30/20 260,000
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3,848,000
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AUSTRALIA - 3.9%
9,800,000 Treasury Corp. of Victoria (AUD) ........ 6.00% 10/17/22 9,977,772
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BAHRAIN - 0.4%
1,050,000 Bahrain Government International
Bond (USD) (b) ....................... 6.00% 09/19/44 1,060,500
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BELGIUM - 2.5%
4,135,000 Belgium Government Bond (EUR) (b)........ 4.25% 09/28/21 6,499,486
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BRAZIL - 9.3%
2,868,192 Brazil Notas do Tesouro Nacional, Series
B, Inflation Adjusted (BRL) (c) ...... 6.00% 08/15/20 1,167,539
31,364,000 Brazil Notas do Tesouro Nacional, Series
F (BRL) .............................. 10.00% 01/01/17 12,286,398
3,200,000 Brazil Notas do Tesouro Nacional, Series
F (BRL) .............................. 10.00% 01/01/23 1,164,553
26,700,000 Brazil Notas do Tesouro Nacional, Series
F (BRL) .............................. 10.00% 01/01/25 9,515,305
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24,133,795
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CANADA - 10.5%
5,000,000 Canadian Government Bond (CAD) .......... 8.00% 06/01/23 6,586,008
15,000,000 Province of Manitoba, Canada (NZD) ...... 6.38% 09/01/15 11,934,807
10,965,000 Province of Ontario, Canada (NZD) ....... 6.25% 06/16/15 8,695,489
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27,216,304
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COLOMBIA - 3.3%
3,122,000,000 Colombia Government International Bond
(COP) ................................ 7.75% 04/14/21 1,681,259
1,440,000,000 Colombia Government International Bond
(COP) ................................ 4.38% 03/21/23 616,179
10,080,000,000 Colombia Government International Bond
(COP) ................................ 9.85% 06/28/27 6,304,869
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8,602,307
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COSTA RICA - 0.4%
1,200,000 Costa Rica Government International Bond
(USD) ................................ 4.25% 01/26/23 1,113,000
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See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED)
CROATIA - 2.2%
4,520,000 Croatia Government International Bond
(USD) ................................ 6.63% 07/14/20 $ 4,994,600
749,000 Croatia Government International Bond
(USD) ................................ 6.00% 01/26/24 802,366
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5,796,966
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DOMINICAN REPUBLIC - 0.6%
700,000 Dominican Republic International Bond
(USD) ................................ 7.50% 05/06/21 791,000
800,000 Dominican Republic International Bond
(USD) (b) ............................ 7.45% 04/30/44 864,000
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1,655,000
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GEORGIA - 0.5%
1,300,000 Georgian Oil and Gas Corp. JSC (USD)
(b) .................................. 6.88% 05/16/17 1,374,555
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GERMANY - 1.0%
2,930,000 KfW (CAD) ............................... 4.95% 10/14/14 2,619,147
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GHANA - 0.5%
1,300,000 Republic of Ghana (USD) (b).............. 8.13% 01/18/26 1,306,500
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HONDURAS - 1.0%
2,360,000 Honduras Government International Bond
(USD) (b) 7.50% 03/15/24 2,548,800
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HUNGARY - 0.9%
539,930,000 Hungary Government Bond (HUF) ........... 5.50% 06/24/25 2,353,555
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INDONESIA - 3.3%
1,750,000 Indonesia Government International Bond
(USD) (b) ............................ 5.88% 01/15/24 1,933,750
17,100,000,000 Indonesia Treasury Bond (IDR) ........... 10.00% 07/15/17 1,477,093
16,000,000,000 Indonesia Treasury Bond (IDR) ........... 7.00% 05/15/27 1,142,127
8,500,000,000 Indonesia Treasury Bond (IDR) ........... 6.13% 05/15/28 562,098
18,670,000,000 Indonesia Treasury Bond (IDR) ........... 10.50% 08/15/30 1,759,664
19,570,000,000 Indonesia Treasury Bond (IDR) ........... 8.38% 03/15/34 1,521,544
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8,396,276
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IRAQ - 0.4%
1,060,000 Republic of Iraq (USD) .................. 5.80% 01/15/28 956,650
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ITALY - 8.5%
4,650,000 Italy Buoni Poliennali Del Tesoro
(EUR) ................................ 9.00% 11/01/23 9,245,027
6,800,000 Italy Buoni Poliennali Del Tesoro
(EUR) ................................ 7.25% 11/01/26 12,729,354
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21,974,381
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See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED)
IVORY COAST - 0.3%
850,000 Ivory Coast Government International
Bond (USD) ........................... 5.75% 12/31/32 $ 814,938
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MEXICO - 5.9%
29,400,000 Mexican Bonos (MXN) ..................... 6.50% 06/09/22 2,271,714
13,850,000 Mexican Bonos (MXN) ..................... 10.00% 11/20/36 1,396,944
99,840,000 Mexican Bonos (MXN) ..................... 8.50% 11/18/38 8,818,606
21,717,856 Mexican Udibonos, Inflation Adjusted
Bond (MXN) (c) ....................... 4.50% 11/22/35 1,555,367
940,000 Mexico Government International Bond
(USD) ................................ 6.05% 01/11/40 1,113,900
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15,156,531
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MONGOLIA - 1.5%
2,490,000 Development Bank of Mongolia LLC
(USD) ................................ 5.75% 03/21/17 2,465,100
1,500,000 Mongolia Government International Bond
(USD) ................................ 5.13% 12/05/22 1,342,500
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3,807,600
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NEW ZEALAND - 6.0%
18,630,000 New Zealand Government Bond (NZD) ....... 6.00% 12/15/17 15,461,826
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NIGERIA - 1.8%
698,000,000 Nigeria Government Bond (NGN) ........... 15.10% 04/27/17 4,560,323
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PERU - 1.6%
11,325,000 Peruvian Government International Bond
(PEN) ................................ 6.95% 08/12/31 4,079,195
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POLAND - 1.2%
6,320,000 Poland Government Bond (PLN) ............ 4.00% 10/25/23 2,062,194
2,980,000 Poland Government Bond (PLN) ............ 5.75% 04/25/29 1,159,847
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3,222,041
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PORTUGAL - 3.6%
6,150,000 Portugal Obrigacoes do Tesouro OT
(EUR) (b) ............................ 5.65% 02/15/24 9,345,424
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ROMANIA - 1.7%
2,680,000 Romanian Government International Bond
(USD) ................................ 6.75% 02/07/22 3,179,150
1,030,000 Romanian Government International Bond
(USD) (b) ............................ 6.13% 01/22/44 1,186,136
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4,365,286
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RUSSIA - 5.2%
458,620,000 Russian Federal Bond - OFZ (RUB) ........ 7.50% 03/15/18 11,032,315
107,140,000 Russian Federal Bond - OFZ (RUB) ........ 7.05% 01/19/28 2,267,485
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13,299,800
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See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED)
RWANDA - 0.8%
510,000 Rwanda International Government Bond
(USD) (b) ............................ 6.63% 05/02/23 $ 531,675
1,440,000 Rwanda International Government Bond
(USD) ................................ 6.63% 05/02/23 1,501,200
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2,032,875
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SENEGAL - 0.9%
870,000 Senegal Government International Bond
(USD) ................................ 8.75% 05/13/21 1,017,900
1,360,000 Senegal Government International Bond
(USD) (b) ............................ 6.25% 07/30/24 1,363,400
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2,381,300
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SERBIA - 2.7%
1,520,000 Republic of Serbia (USD) ................ 5.25% 11/21/17 1,569,400
122,500,000 Serbia Treasury Bills (RSD) ............. (d) 01/29/15 1,290,382
229,400,000 Serbia Treasury Bills (RSD) ............. (d) 02/26/15 2,403,190
160,000,000 Serbia Treasury Bonds (RSD) ............. 10.00% 01/10/15 1,736,644
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6,999,616
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SOUTH AFRICA - 4.7%
1,800,000 Eskom Holdings SOC Ltd. (USD) ........... 6.75% 08/06/23 1,896,750
680,000 Eskom Holdings SOC Ltd. (USD) (b)........ 6.75% 08/06/23 716,550
54,930,000 South Africa Government Bond (ZAR) ...... 10.50% 12/21/26 5,672,078
46,500,000 South Africa Government Bond (ZAR) ...... 8.00% 01/31/30 3,872,613
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12,157,991
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SPAIN - 2.1%
3,300,000 Spain Government Bond (EUR) (b).......... 5.15% 10/31/44 5,440,146
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TANZANIA - 1.1%
2,600,000 Tanzania Government International Bond
(USD) (e) ............................ 6.33% 03/09/20 2,814,500
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TURKEY - 4.9%
16,100,000 Turkey Government Bond (TRY) ............ 9.00% 01/27/16 7,024,368
6,600,000 Turkey Government Bond (TRY) ............ 6.30% 02/14/18 2,640,377
4,807,243 Turkey Government Bond, Inflation
Adjusted Bond (TRY) (c) .............. 3.00% 02/23/22 1,954,503
1,000,000 Turkey Government International Bond
(USD) ................................ 6.25% 09/26/22 1,102,500
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12,721,748
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UNITED ARAB EMIRATES - 1.4%
2,840,000 Emirate of Dubai Government
International Bonds (USD) ............ 7.75% 10/05/20 3,550,000
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UNITED KINGDOM - 1.7%
2,170,000 United Kingdom Gilt (GBP) ............... 4.25% 12/07/49 4,458,226
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See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES (CONTINUED)
URUGUAY - 2.1%
655,000 Uruguay Government International Bond
(USD) ................................ 7.63% 03/21/36 $ 872,788
97,444,957 Uruguay Government International Bond,
Inflation Adjusted Bond (UYU) (c)..... 5.00% 09/14/18 4,239,131
6,445,991 Uruguay Government International Bond,
Inflation Adjusted Bond (UYU) (c) .... 4.25% 04/05/27 285,429
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5,397,348
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VENEZUELA - 2.5%
7,560,000 Venezuela Government International Bond
(USD) ................................ 12.75% 08/23/22 6,331,500
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ZAMBIA - 0.4%
1,010,000 Zambia Government International Bond
(USD) (b) ............................ 8.50% 04/14/24 1,149,506
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TOTAL FOREIGN SOVEREIGN BONDS AND NOTES................................... 277,611,081
(Cost $286,652,896) -------------
FOREIGN CORPORATE BONDS AND NOTES (f) - 24.7%
BANGLADESH - 0.4%
1,000,000 Banglalink Digital Communications Ltd.
(USD) (b) ............................ 8.63% 05/06/19 1,057,500
-------------
BRAZIL - 1.6%
1,200,000 CIMPOR Financial Operations BV (USD)
(b) .................................. 5.75% 07/17/24 1,164,000
1,030,000 JBS Investments GmbH (USD) (b)........... 7.75% 10/28/20 1,099,525
1,550,000 OAS Finance Ltd. (USD) (b) (g)........... 8.88% (h) 1,470,020
460,000 OAS Investments GmbH (USD) (b)........... 8.25% 10/19/19 452,507
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4,186,052
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CANADA - 0.8%
2,350,000 Uranium One Investments, Inc. (USD)
(b) .................................. 6.25% 12/13/18 2,185,500
-------------
CHILE - 0.5%
1,240,000 SACI Falabella (USD) .................... 3.75% 04/30/23 1,197,846
-------------
CHINA - 0.2%
550,000 CIFI Holdings Group Co., Ltd. (USD) ..... 12.25% 04/15/18 617,375
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COLOMBIA - 0.4%
1,000,000 Pacific Rubiales Energy Corp. (USD)
(b) .................................. 5.38% 01/26/19 1,017,500
-------------
DOMINICAN REPUBLIC - 0.6%
1,350,000 AES Andres Dominicana, Ltd. / Itabo
Dominicana, Ltd. (USD) ............... 9.50% 11/12/20 1,449,563
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EL SALVADOR - 0.4%
921,000 Telemovil Finance Co., Ltd. (USD) ....... 8.00% 10/01/17 949,781
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See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN CORPORATE BONDS AND NOTES (f) (CONTINUED)
GUATEMALA - 0.9%
580,000 Comcel Trust (USD) (b)................... 6.88% 02/06/24 $ 613,350
1,550,000 Industrial Subordinated Trust (USD) ..... 8.25% 07/27/21 1,681,750
-------------
2,295,100
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HONG KONG - 0.2%
500,000 MIE Holdings Corp. (USD) (b)............. 7.50% 04/25/19 511,250
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INDIA - 0.2%
600,000 Bharti Airtel International Netherlands
B.V. (USD) (b) ....................... 5.13% 03/11/23 633,816
-------------
INDONESIA - 0.9%
1,600,000 Pertamina Persero PT (USD) (b)........... 4.30% 05/20/23 1,524,000
822,000 Pertamina Persero PT (USD) .............. 6.00% 05/03/42 789,120
-------------
2,313,120
-------------
KAZAKHSTAN - 1.5%
1,000,000 Kazakhstan Temir Zholy Finance B.V.
(USD) (b) ............................ 6.95% 07/10/42 1,085,540
1,350,000 KazMunayGas National Co JSC (USD) ....... 5.75% 04/30/43 1,270,620
1,500,000 Zhaikmunai LLP (USD) (b)................. 7.13% 11/13/19 1,578,750
-------------
3,934,910
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MEXICO - 2.6%
600,000 Alfa SAB de CV (USD) (b)................. 5.25% 03/25/24 641,400
1,400,000 BBVA Bancomer S.A. (USD) (b)............. 6.75% 09/30/22 1,571,500
850,000 CEMEX Espana S.A. (USD) ................. 9.88% 04/30/19 947,750
460,000 Cemex Finance, LLC (USD) (b)............. 9.38% 10/12/22 520,950
2,400,000 Offshore Drilling Holding S.A.
(USD) (b) ............................ 8.63% 09/20/20 2,550,000
400,000 Petroleos Mexicanos (USD) (b)............ 6.38% 01/23/45 453,320
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6,684,920
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MOZAMBIQUE - 1.0%
2,550,000 EMATUM Via Mozambique EMATUM Finance 2020
BV (USD) ............................. 6.31% 09/11/20 2,572,440
-------------
MULTINATIONAL - 6.2%
17,600,000 Asian Development Bank (AUD) ............ 5.50% 02/15/16 15,957,661
-------------
NIGERIA - 0.7%
1,200,000 Diamond Bank PLC (USD) (b)............... 8.75% 05/21/19 1,194,000
650,000 Zenith Bank PLC (USD) (b)................ 6.25% 04/22/19 652,437
-------------
1,846,437
-------------
PARAGUAY - 0.8%
1,900,000 Banco Regional SAECA (USD) (b)........... 8.13% 01/24/19 2,090,000
-------------
See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
SEPTEMBER 30, 2014 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN CORPORATE BONDS AND NOTES (f) (CONTINUED)
RUSSIA - 1.3%
1,150,000 Alfa Bank OJSC Via Alfa Bond Issuance
PLC (USD) ............................ 7.75% 04/28/21 $ 1,161,615
950,000 Evraz Group S.A. (USD) (b)............... 6.50% 04/22/20 877,629
1,350,000 Vimpel Communications Via VIP Finance
Ireland Ltd., OJS (USD) .............. 7.75% 02/02/21 1,397,250
-------------
3,436,494
-------------
TURKEY - 0.6%
750,000 Arcelik AS (USD) (b)..................... 5.00% 04/03/23 708,750
810,000 Yasar Holdings S.A. via Willow No. 2
(USD) ................................ 9.63% 10/07/15 830,088
-------------
1,538,838
-------------
UKRAINE - 0.5%
1,400,000 MHP S.A. (USD) .......................... 8.25% 04/02/20 1,200,780
-------------
UNITED ARAB EMIRATES - 1.0%
2,270,000 Jafz Sukuk Ltd. (USD) ................... 7.00% 06/19/19 2,612,316
-------------
UNITED KINGDOM - 0.2%
410,000 Tullow Oil PLC (USD) (b)................. 6.00% 11/01/20 412,050
-------------
VENEZUELA - 1.2%
3,870,000 Petroleos de Venezuela S.A. (USD) ....... 8.50% 11/02/17 3,057,300
-------------
TOTAL FOREIGN CORPORATE BONDS AND NOTES................................... 63,758,549
(Cost $60,138,360) -------------
TOTAL INVESTMENTS - 132.1%................................................ 341,369,630
(Cost $346,791,256) (i)
OUTSTANDING LOANS - (37.9%)............................................... (97,904,311)
NET OTHER ASSETS AND LIABILITIES - 5.8%................................... 14,873,968
-------------
NET ASSETS - 100.0%........................................................ $ 258,339,287
=============
--------------------------------------------------------------------------------
(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 September 30, 2014, securities noted
as such amounted to $64,973,722 or 25.15% 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.
See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
SEPTEMBER 30, 2014 (UNAUDITED)
(d) Zero coupon bond.
(e) Floating rate security. The interest rate shown reflects the rate in
effect at September 30, 2014.
(f) Portfolio securities are included in a country based upon their
underlying credit exposure as determined by the Fund's investment
sub-advisor.
(g) Fixed-to-floating or fixed-to-variable rate security. The interest
rate shown reflects the fixed rate in effect at September 30, 2014.
At a predetermined date, the fixed rate will change to a floating
rate or a variable rate.
(h) Perpetual maturity.
(i) Aggregate cost for financial reporting purposes, which approximates
the aggregate cost for federal income tax purposes. As of September
30, 2014, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was
$15,302,070 and the aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over value was
$20,723,696.
--------------------------------------------------------------------------------
Currency Abbreviations:
ARS Argentine Peso
AUD Australian Dollar
BRL Brazilian Real
CAD Canadian Dollar
COP Colombian Peso
EUR Euro
GBP British Pound Sterling
HUF Hungarian Forint
IDR Indonesian Rupiah
INR Indian Rupee
MXN Mexican Peso
NGN Nigerian Naira
NZD New Zealand Dollar
PEN Peruvian New Sol
PLN Polish Zloty
RSD Serbian Dinar
RUB Russian Ruble
TRY Turkish Lira
USD United States Dollar
UYU Uruguayan Peso
ZAR South African Rand
See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
SEPTEMBER 30, 2014 (UNAUDITED)
-----------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of September 30,
2014 is as follows (see Note 2A - Portfolio Valuation in the Notes to Quarterly
Portfolio of Investments):
ASSETS TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
9/30/2014 PRICES INPUTS INPUTS
---------------------------------------------- --------------- ------------- --------------- --------------
Foreign Sovereign Bonds and Notes*............ $ 277,611,081 $ -- $ 277,611,081 $ --
Foreign Corporate Bonds and Notes*............ 63,758,549 -- 63,758,549 --
--------------- ------------- --------------- --------------
Total Investments............................. 341,369,630 -- 341,369,630 --
Forward Foreign Currency Contracts**.......... 6,077,185 -- 6,077,185 --
--------------- ------------- --------------- --------------
Total......................................... $ 347,446,815 $ -- $ 347,446,815 $ --
=============== ============= =============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
9/30/2014 PRICES INPUTS INPUTS
--------------- ------------- --------------- --------------
Forward Foreign Currency Contracts**.......... $ (779,120) $ -- $ (779,120) $ --
================ ============== =============== ==============
* See the Portfolio of Investments for country breakout.
** See the Schedule of 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 September 30, 2014.
See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
SEPTEMBER 30, 2014 (UNAUDITED)
% OF TOTAL CURRENCY EXPOSURE % OF TOTAL
INDUSTRY CLASSIFICATION INVESTMENTS DIVERSIFICATION INVESTMENTS +
-------------------------------------------------------------- ----------------------------------------
Sovereigns 69.7% USD 53.2%
Government Regional 9.0 EUR 9.8
Supranationals 4.7 BRL 4.8
Banks 2.8 MXN 4.1
Exploration & Production 2.2 RUB 3.9
Industrial Other 1.3 ZAR 2.9
Financial Services 1.2 AUD 2.7
Real Estate 0.9 COP 2.5
Integrated Oils 0.9 INR 2.1
Government Development Banks 0.8 TRY 1.9
Government Agencies 0.8 CAD 1.9
Consumer Services 0.7 IDR 1.9
Wireless Telecommunications Services 0.7 RSD 1.6
Food & Beverage 0.7 NGN 1.3
Wireline Telecommunications Services 0.5 UYU 1.3
Chemicals 0.4 GBP 1.3
Construction Materials Manufacturing 0.4 PLN 1.3
Power Generation 0.4 PEN 1.2
Pipeline 0.4 HUF 0.7
Department Stores 0.4 ARS 0.6
Consumer Finance 0.3 NZD (1.0)
Railroad 0.3 ----------------------------------------
Metals & Mining 0.3 Total 100.0%
Home Improvement 0.2 =======
--------------------------------------------------------------
Total 100.0%
=======
+ The weightings include the impact of currency forwards.
See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
PORTFOLIO OF INVESTMENTS (a) (CONTINUED)
SEPTEMBER 30, 2014 (UNAUDITED)
% OF TOTAL
CREDIT QUALITY(1) INVESTMENTS
--------------------------------------------------------------
AAA 14.8%
AA+ 4.8
AA 4.5
A 5.1
A- 1.6
BBB+ 22.1
BBB 8.4
BBB- 7.5
BB+ 6.2
BB 3.8
BB- 5.1
B+ 6.5
B 6.0
CCC 2.3
NR 1.3
--------------------------------------------------------------
Total 100.0%
=======
(1) The credit quality and ratings information presented above reflect the
ratings assigned by one or more nationally recognized statistical rating
organizations (NRSROs), including Standard & Poor's Ratings Group, a
division of the McGraw-Hill Companies, Inc., Moody's Investors Service,
Inc., Fitch Ratings or a comparably rated NRSRO. For situations in which a
security is rated by more than one NRSRO and the ratings are not
equivalent, the highest ratings are used. The credit ratings shown relate
to the credit worthiness of the issuers of the underlying securities in
the Fund, and not to the Fund or its shares. Credit ratings are subject to
change.
See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
SCHEDULE OF FORWARD FOREIGN CURRENCY CONTRACTS
SEPTEMBER 30, 2014 (UNAUDITED)
FORWARD FOREIGN CURRENCY CONTRACTS
---------------------------------------------------------
PURCHASE SALE
VALUE AS OF VALUE AS OF UNREALIZED
SETTLEMENT AMOUNT AMOUNT SEPTEMBER 30, SEPTEMBER 30, APPRECIATION/
DATE COUNTERPARTY PURCHASED (a) SOLD (a) 2014 2014 (DEPRECIATION)
---------- -------------- -------------------- ------------------ --------------- --------------- --------------
10/28/14 CIT ARS 19,232,000 USD 2,214,393 $ 2,179,140 $ 2,214,393 $ (35,253)
10/16/14 RBC AUD 9,086,000 USD 8,260,809 7,945,682 8,260,809 (315,127)
11/28/14 CIT BRL 5,417,000 USD 2,318,326 2,176,879 2,318,326 (141,447)
11/28/14 CIT INR 432,480,000 USD 7,017,498 6,910,153 7,017,498 (107,345)
10/16/14 HSBC NZD 917,000 USD 800,767 714,647 800,767 (86,120)
10/16/14 CIT PLN 3,903,000 USD 1,195,103 1,177,847 1,195,103 (17,256)
10/16/14 CIT TRY 725,000 USD 334,594 317,037 334,594 (17,557)
10/16/14 CIT ZAR 28,112,000 USD 2,543,653 2,484,638 2,543,653 (59,015)
10/16/14 BAR USD 12,535,832 AUD 13,464,000 12,535,832 11,774,231 761,601
10/16/14 CIT USD 12,534,136 AUD 13,464,000 12,534,136 11,774,232 759,904
11/28/14 JPM USD 10,210,319 BRL 23,885,000 10,210,319 9,598,438 611,881
10/16/14 DB USD 2,667,842 CAD 2,850,000 2,667,842 2,543,697 124,145
10/16/14 DB USD 2,342,333 EUR 1,717,000 2,342,333 2,168,901 173,432
10/16/14 RBC USD 7,527,992 EUR 5,823,000 7,527,992 7,355,567 172,425
10/16/14 DB USD 10,206,015 NZD 11,676,000 10,206,015 9,099,465 1,106,550
10/16/14 GS USD 10,204,651 NZD 11,675,000 10,204,651 9,098,686 1,105,965
10/16/14 HSBC USD 19,826,339 NZD 24,250,000 19,826,339 18,898,769 927,570
10/16/14 JPM USD 5,388,289 TRY 11,690,000 5,388,289 5,111,946 276,343
10/16/14 CIT USD 2,338,460 ZAR 25,809,000 2,338,460 2,281,091 57,369
--------------
Net Unrealized Appreciation (Depreciation)............................................................ $ 5,298,065
==============
(a) See Portfolio of Investments for currency descriptions.
Counterparty Abbreviations:
BAR Barclays Bank
CIT Citibank, NA
DB Deutsche Bank
GS Goldman Sachs
HSBC HSBC Holdings PLC
JPM JPMorgan Chase
RBC Royal Bank of Canada
See Notes to Quarterly Portfolio of Investments
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
SEPTEMBER 30, 2014 (UNAUDITED)
1. ORGANIZATION
First Trust/Aberdeen Global Opportunity Income Fund (the "Fund") is a
diversified, closed-end management investment company organized as a
Massachusetts business trust on September 2, 2004, and is registered with the
Securities and Exchange Commission under the Investment Company Act of 1940, as
amended (the "1940 Act"). The Fund trades under the ticker symbol FAM on the New
York Stock Exchange ("NYSE").
2. VALUATION AND INVESTMENT PRACTICES
A. PORTFOLIO VALUATION:
The net asset value ("NAV") of the Common Shares of the Fund is determined daily
as of the close of regular trading on the NYSE, normally 4:00 p.m. Eastern time,
on each day the NYSE is open for trading. If the NYSE closes early on a
valuation day, the NAV is determined as of that time. Domestic debt securities
and foreign securities are priced using data reflecting the earlier closing of
the principal markets for those securities. The NAV per Common Share is
calculated by dividing the value of all assets of the Fund (including accrued
interest and dividends), less all liabilities (including accrued expenses,
dividends declared but unpaid and any borrowings of the Fund), by the total
number of Common Shares outstanding.
The Fund's investments are valued daily at market value or, in absence of market
value with respect to any portfolio securities, at fair value. Market value
prices represent last sale or official closing prices from a national or foreign
exchange (i.e. a regulated market) and are primarily obtained from third party
pricing services. Fair value prices represent any prices not considered market
value prices and are either obtained from a third party pricing service or are
determined by First Trust Advisors L.P.'s (the "Advisor") Pricing Committee 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 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.
Debt securities having a remaining maturity of sixty days or less when
purchased are fair valued at cost adjusted for amortization of premiums
and accretion of discounts.
Common stocks and other equity securities listed on any national or
foreign exchange (excluding The NASDAQ(R) Stock Market LLC ("NASDAQ") and
the London Stock Exchange Alternative Investment Market ("AIM")) are
valued at the last sale price on the exchange on which they are
principally traded or, for NASDAQ and AIM securities, the official closing
price. Securities traded on more than one securities exchange are valued
at the last sale price or official closing price, as applicable, at the
close of the securities exchange representing the principal market for
such securities.
Securities traded in an over-the-counter market are fair valued at the
mean of their most recent bid and asked price, if available, and otherwise
at their closing bid price.
Forward foreign currency contracts are 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 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
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
SEPTEMBER 30, 2014 (UNAUDITED)
they will differ from market quotations or official closing prices on the
applicable exchanges. A variety of factors may be considered in determining the
fair value of such securities, including, but not limited to, the following:
1) the fundamental business data relating to the issuer, or economic
data relating to the country of issue;
2) an evaluation of the forces which influence the market in which
these securities are purchased and sold;
3) the type, size and cost of the security;
4) the financial statements of the issuer, or the financial condition
of the country of issue;
5) the credit quality and cash flow of the issuer, or country of issue,
based on the sub-advisor's or external analysis;
6) the information as to any transactions in or offers for the
security;
7) the price and extent of public trading in similar securities (or
equity securities) of the issuer/borrower, or comparable companies;
8) the coupon payments;
9) the quality, value and salability of collateral, if any, securing
the security;
10) the business prospects of the issuer, including any ability to
obtain money or resources from a parent or affiliate and an
assessment of the issuer's management (for corporate debt only);
11) the economic, political and social prospects/developments of the
country of issue and the assessment of the country's governmental
leaders/officials (for sovereign debt only);
12) the prospects for the issuer's industry, and multiples (of earnings
and/or cash flows) being paid for similar businesses in that
industry (for corporate debt only); and
13) other relevant factors.
The Fund is subject to fair value accounting standards that define fair value,
establish the framework for measuring fair value and provide a three-level
hierarchy for fair valuation based upon the inputs to the valuation as of the
measurement date. The three levels of the fair value hierarchy are as follows:
o Level 1 - Level 1 inputs are quoted prices in active markets for
identical investments. An active market is a market in which
transactions for the investment occur with sufficient frequency and
volume to provide pricing information on an ongoing basis.
o Level 2 - Level 2 inputs are observable inputs, either directly or
indirectly, and include the following:
o Quoted prices for similar investments in active markets.
o Quoted prices for identical or similar investments in markets
that are non-active. A non-active market is a market where
there are few transactions for the investment, the prices are
not current, or price quotations vary substantially either
over time or among market makers, or in which little
information is released publicly.
o Inputs other than quoted prices that are observable for the
investment (for example, interest rates and yield curves
observable at commonly quoted intervals, volatilities,
prepayment speeds, loss severities, credit risks, and default
rates).
o Inputs that are derived principally from or corroborated by
observable market data by correlation or other means.
o Level 3 - Level 3 inputs are unobservable inputs. Unobservable
inputs may reflect the reporting entity's own assumptions about the
assumptions that market participants would use in pricing the
investment.
The inputs or methodology 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 September 30, 2014, is
included with the Fund's Portfolio of Investments.
B. SECURITIES TRANSACTIONS:
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
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 September 30, 2014, the Fund had no when-issued,
delayed-delivery or forward purchase commitments.
C. FORWARD FOREIGN CURRENCY CONTRACTS:
The Fund is subject to foreign currency risk in the normal course of pursuing
its investment objectives. Forward foreign currency contracts are agreements to
exchange one currency for another at a future date and at a specified price. The
Fund uses forward foreign currency contracts to facilitate transactions in
foreign securities and to manage the Fund's foreign currency exposure. These
contracts are valued daily, and the Fund's net equity therein, representing
unrealized gain or loss on the contracts as measured by the difference between
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND (FAM)
SEPTEMBER 30, 2014 (UNAUDITED)
the forward foreign exchange rates at the dates of entry into the contracts and
the forward rates at the reporting date, is included on the Schedule of Forward
Foreign Currency Contracts. 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 Schedule of
Forward Foreign Currency Contracts.
For the fiscal year to date period (January 1, 2014 through September 30, 2014),
the amount of notional values of forward foreign currency contracts opened and
closed were $622,628,822 and $666,740,667, respectively.
D. FOREIGN CURRENCY:
The books and records of the Fund are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at the exchange rates prevailing at the end of the period.
Purchases and sales of investment securities and items of income and expense are
translated on the respective dates of such transactions. Net realized foreign
currency gains and losses include the effect of changes in exchange rates
between trade date and settlement date on investment security transactions,
foreign currency transactions and interest and dividends received.
ITEM 2. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers, or
persons performing similar functions, have concluded that the registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR
270.30a-3(c))) are effective, as of a date within 90 days of the filing
date of the report that includes the disclosure required by this
paragraph, based on their evaluation of these controls and procedures
required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and
Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as
amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR
270.30a-3(d)) that occurred during the registrant's last fiscal quarter
that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of
the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) First Trust/Aberdeen Global Opportunity Income Fund
--------------------------------------------------------
By (Signature and Title)* /s/ Mark R. Bradley
----------------------------------------
Mark R. Bradley, President and
Chief Executive Officer
(principal executive officer)
Date: November 20, 2014
--------------------
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: November 20, 2014
--------------------
By (Signature and Title)* /s/ James M. Dykas
----------------------------------------
James M. Dykas, Treasurer,
Chief Financial Officer and
Chief Accounting Officer
(principal financial officer)
Date: November 20, 2014
--------------------
* Print the name and title of each signing officer under his or her signature.