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
-----------
First Trust/Aberdeen Global Opportunity Income Fund
---------------------------------------------------------------
(Exact name of registrant as specified in charter)
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
---------------------------------------------------------------
(Address of principal executive offices) (Zip code)
W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
---------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (630) 765-8000
--------------
Date of fiscal year end: December 31
-------------
Date of reporting period: September 30, 2012
------------------
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
PORTFOLIO OF INVESTMENTS (a)
SEPTEMBER 30, 2012 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED VALUE
CURRENCY) DESCRIPTION COUPON STATED MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES (b) - 92.3%
ARGENTINA - 1.8%
2,920,000 Republic of Argentina (USD) ........... 7.00% 09/12/13 $ 2,918,032
2,895,000 Republic of Argentina (USD) ........... 8.75% 06/02/17 2,837,100
-------------
5,755,132
-------------
AUSTRALIA - 7.1%
11,000,000 Australian Government (AUD) ........... 6.00% 02/15/17 13,084,512
8,100,000 Queensland Treasury (AUD) ............. 6.00% 10/14/15 9,136,485
-------------
22,220,997
-------------
BRAZIL - 6.6%
8,320,000 Brazil Notas do Tesouro Nacional Series F
(BRL) ............................. 10.00% 01/01/15 4,242,065
11,370,000 Brazil Notas do Tesouro Nacional Series F
(BRL) ............................. 10.00% 01/01/17 5,804,564
19,180,000 Brazil Notas do Tesouro Nacional Series F
(BRL) ............................. 10.00% 01/01/21 9,667,420
900,000 Republic of Brazil (USD) .............. 5.63% 01/07/41 1,156,500
-------------
20,870,549
-------------
CANADA - 10.5%
1,700,000 Canadian Government Bond (CAD) ........ 5.25% 06/01/13 1,777,089
5,000,000 Canadian Government Bond (CAD) ........ 8.00% 06/01/23 8,133,201
15,000,000 Province of Manitoba (NZD) ............ 6.38% 09/01/15 13,427,255
10,965,000 Province of Ontario (NZD) ............. 6.25% 06/16/15 9,757,843
-------------
33,095,388
-------------
CROATIA - 1.7%
2,500,000 Croatia Government International Bond
(USD) (c).......................... 6.25% 04/27/17 2,712,500
2,370,000 Croatia Government International Bond
(USD) ............................. 6.63% 07/14/20 2,668,620
-------------
5,381,120
-------------
DOMINICAN REPUBLIC - 1.2%
1,300,000 Dominican Republic (USD) .............. 7.50% 05/06/21 1,475,500
2,066,000 Dominican Republic (USD) .............. 8.63% 04/20/27 2,350,075
-------------
3,825,575
-------------
EGYPT - 0.9%
1,000,000 Arab Republic of Egypt (USD) (c)....... 6.88% 04/30/40 992,500
1,900,000 Arab Republic of Egypt (USD) .......... 6.88% 04/30/40 1,885,750
-------------
2,878,250
-------------
EL SALVADOR - 0.1%
150,000 Republic of El Salvador (USD) ......... 8.25% 04/10/32 178,875
-------------
GEORGIA - 0.6%
1,300,000 Georgian Oil and Gas Corp. (USD) (c)... 6.88% 05/16/17 1,339,000
See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
SEPTEMBER 30, 2012 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED VALUE
CURRENCY) DESCRIPTION COUPON STATED MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES (b) - (CONTINUED)
GEORGIA - (CONTINUED)
600,000 JSC Georgian Railway (USD) (c)......... 7.75% 07/11/22 $ 677,316
-------------
2,016,316
-------------
HUNGARY - 5.1%
810,000,000 Hungary Government Bond (HUF) ......... 6.75% 08/22/14 3,684,467
2,170,000,000 Hungary Government Bond (HUF) ......... 6.75% 11/24/17 9,791,457
2,050,000 Republic of Hungary (EUR) ............. 4.50% 01/29/14 2,639,620
-------------
16,115,544
-------------
INDONESIA - 2.0%
17,100,000,000 Indonesian Government Bond (IDR) ...... 10.00% 07/15/17 2,117,082
27,670,000,000 Indonesian Government Bond (IDR) ...... 10.50% 08/15/30 4,051,700
-------------
6,168,782
-------------
IVORY COAST - 1.7%
6,050,000 Ivory Coast Government Bond (USD) (d).. 3.75% 12/31/32 5,248,375
-------------
LITHUANIA - 2.0%
2,390,000 Republic of Lithuania (USD) ........... 6.75% 01/15/15 2,640,950
1,980,000 Republic of Lithuania (USD) ........... 7.38% 02/11/20 2,524,500
800,000 Republic of Lithuania (USD) ........... 6.63% 02/01/22 995,000
-------------
6,160,450
-------------
MALAYSIA - 2.5%
9,000,000 Malaysia Government Bond (MYR) ........ 3.21% 05/31/13 2,948,746
14,500,000 Malaysia Government Bond (MYR) ........ 4.01% 09/15/17 4,893,249
-------------
7,841,995
-------------
MEXICO - 5.6%
115,500,000 Mexican Bonos Desarr Fixed Rate Bond
(MXN) ............................. 7.50% 06/03/27 10,390,733
32,950,000 Mexican Bonos Desarr Fixed Rate Bond
(MXN) ............................. 10.00% 11/20/36 3,667,402
21,000,000 Mexico Treasury Billl (MXN) ........... (e) 10/04/12 1,630,322
1,500,000 United Mexican States (USD) ........... 6.05% 01/11/40 2,006,250
-------------
17,694,707
-------------
NEW ZEALAND - 5.8%
19,150,000 New Zealand Government Bond (NZD) ..... 6.00% 12/15/17 18,278,566
-------------
PAKISTAN - 0.9%
3,200,000 Islamic Republic of Pakistan (USD) .... 6.88% 06/01/17 2,720,000
-------------
PERU - 1.5%
10,100,000 Peruvian Government Bond (PEN) ........ 7.84% 08/12/20 4,825,447
-------------
QATAR - 0.7%
1,660,000 State of Qatar (USD) .................. 6.40% 01/20/40 2,274,200
-------------
See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
SEPTEMBER 30, 2012 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED VALUE
CURRENCY) DESCRIPTION COUPON STATED MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES (b) - (CONTINUED)
ROMANIA - 1.0%
2,910,000 Romanian Government International Bond
(USD) ............................. 6.75% 02/07/22 $ 3,284,662
-------------
RUSSIA - 2.0%
185,000,000 Russian Foreign Bond (RUB) ............ 7.85% 03/10/18 6,375,220
-------------
SENEGAL - 0.2%
470,000 Republic of Senegal (USD) ............. 8.75% 05/13/21 571,050
-------------
SERBIA - 3.5%
3,150,000 Republic of Serbia (USD) .............. 7.25% 09/28/21 3,354,750
2,600,000 Republic of Serbia (USD) (c)........... 7.25% 09/28/21 2,769,000
219,000,000 Serbia Treasury Bills (RSD) ........... (e) 12/13/12 2,392,403
248,000,000 Serbia Treasury Bills (RSD) ........... (e) 01/17/13 2,671,587
-------------
11,187,740
-------------
SOUTH AFRICA - 4.6%
930,000 Eskom Holdings Ltd. (USD) ............. 5.75% 01/26/21 1,064,850
89,100,000 Republic of South Africa (ZAR) ........ 10.50% 12/21/26 13,553,295
-------------
14,618,145
-------------
SPAIN - 3.8%
11,500,000 Instituto de Credito Oficial (AUD) .... 5.50% 10/11/12 11,922,651
-------------
TURKEY - 5.5%
2,100,000 Republic of Turkey (USD) .............. 6.25% 09/26/22 2,518,320
3,600,000 Turkey Government Bond (TRY) .......... 16.00% 08/28/13 2,161,302
16,100,000 Turkey Government Bond (TRY) .......... 9.00% 01/27/16 9,347,809
5,000,000 Turkey Government Bond (TRY) .......... 10.50% 01/15/20 3,150,647
-------------
17,178,078
-------------
UNITED ARAB EMIRATES - 1.2%
3,170,000 Dubai Government International Bond (USD) 7.75% 10/05/20 3,772,300
-------------
UNITED KINGDOM - 5.7%
1,200,000 United Kingdom Treasury (GBP) ......... 8.00% 12/07/15 2,414,071
4,600,000 United Kingdom Treasury (GBP) ......... 6.00% 12/07/28 11,220,558
2,170,000 United Kingdom Treasury (GBP) ......... 4.25% 12/07/49 4,340,513
-------------
17,975,142
-------------
URUGUAY - 1.8%
50,880,000 Republica Orient Uruguay, Inflation
Adjusted Bond (UYU) (f)............ 5.00% 09/14/18 4,423,346
14,600,000 Republica Orient Uruguay, Inflation
Adjusted Bond (UYU) (f)............ 4.25% 04/05/27 1,237,614
-------------
5,660,960
-------------
VENEZUELA - 4.4%
1,170,000 Republic of Venezuela (USD) ........... 8.50% 10/08/14 1,181,700
See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
SEPTEMBER 30, 2012 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED VALUE
CURRENCY) DESCRIPTION COUPON STATED MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN SOVEREIGN BONDS AND NOTES (b) - (CONTINUED)
VENEZUELA - (CONTINUED)
9,720,000 Republic of Venezuela (USD) ........... 5.75% 02/26/16 $ 8,905,950
400,000 Republic of Venezuela (USD) ........... 7.75% 10/13/19 347,000
1,000,000 Republic of Venezuela (USD) ........... 7.65% 04/21/25 787,500
2,430,000 Republic of Venezuela (USD) ........... 11.95% 08/05/31 2,484,675
-------------
13,706,825
-------------
VIETNAM - 0.3%
800,000 Socialist Republic of Vietnam (USD) ... 6.88% 01/15/16 876,000
-------------
TOTAL FOREIGN SOVEREIGN BONDS AND NOTES ............................ 290,679,041
(Cost $250,672,588) -------------
FOREIGN CORPORATE BONDS AND NOTES (B) - 37.1%
BRAZIL - 2.1%
600,000 Banco do Estado do Rio Grande do Sul
(USD) (c).......................... 7.38% 02/02/22 670,500
550,000 Odebrecht Finance Ltd. (USD) .......... 7.50% 09/14/15 587,125
600,000 Odebrecht Finance Ltd. (USD) (c)....... 7.13% 06/26/42 669,900
1,950,000 OGX Petroleo e Gas Participacoes S.A.
(USD) ............................. 8.50% 06/01/18 1,764,750
900,000 OSX 3 Leasing B.V. (USD) (c)........... 9.25% 03/20/15 936,720
800,000 Vale Overseas Ltd. (USD) .............. 4.38% 01/11/22 842,000
1,100,000 Virgolino de Oliveira Finance Ltd. (USD) 10.50% 01/28/18 1,100,000
-------------
6,570,995
-------------
CHINA - 2.0%
1,300,000 Agile Property Holdings Ltd. (USD) .... 9.88% 03/20/17 1,358,500
1,300,000 Central China Real Estate Ltd. (USD) .. 12.25% 10/20/15 1,423,500
1,250,000 China Overseas Finance Cayman II Ltd.
(USD) ............................. 5.50% 11/10/20 1,382,609
600,000 Cosl Finance BVI Ltd. (USD) (c)........ 3.25% 09/06/22 597,016
1,000,000 MCC Holding (Hong Kong) Corp. Ltd. (USD) 4.88% 07/29/16 1,043,641
600,000 Yancoal International Resources
Development Co. Ltd. (USD) (c)..... 5.73% 05/16/22 625,228
-------------
6,430,494
-------------
DOMINICAN REPUBLIC - 0.5%
1,350,000 AES Andres Dominicana/Itabo Dominicana
(USD) ............................. 9.50% 11/12/20 1,471,500
-------------
EL SALVADOR - 0.5%
1,550,000 Telemovil Finance Co., Ltd. (USD) ..... 8.00% 10/01/17 1,647,805
-------------
GERMANY - 1.3%
3,650,000 KfW International Finance (CAD) ....... 4.95% 10/14/14 3,975,983
-------------
See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
SEPTEMBER 30, 2012 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED VALUE
CURRENCY) DESCRIPTION COUPON STATED MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN CORPORATE BONDS AND NOTES (b) - (CONTINUED)
GUATEMALA - 0.5%
1,550,000 Industrial Subordinated Trust (USD) ... 8.25% 07/27/21 $ 1,731,412
-------------
INDONESIA - 2.0%
3,220,000 Majapahit Holding B.V. (USD) .......... 7.75% 10/17/16 3,827,775
1,500,000 Pertamina Persero PT (USD) (c)......... 4.88% 05/03/22 1,618,125
700,000 PT Adaro Indonesia (USD) .............. 7.63% 10/22/19 777,000
-------------
6,222,900
-------------
KAZAKHSTAN - 0.4%
1,000,000 Kazakhstan Temir Zholy Finance B.V. (USD)
(c)................................ 6.95% 07/10/42 1,216,250
-------------
MEXICO - 3.0%
1,400,000 BBVA Bancomer S.A. Texas (USD) (c)..... 6.75% 09/30/22 1,533,000
850,000 CEMEX Espana S.A. Luxembourg (USD) (c). 9.88% 04/30/19 873,375
1,300,000 Corporacion GEO S.A. de C.V. (USD) (c). 8.88% 03/27/22 1,332,500
1,136,000 Desarrolladora Homex S.A. (USD) ....... 9.50% 12/11/19 1,170,080
2,600,313 GEO Maquinaria S.A. de C.V. (USD) ..... 9.63% 05/02/21 2,418,291
1,672,000 Servicios Corporativos Javer Sapi de C.V.
(USD) ............................. 9.88% 04/06/21 1,667,820
525,000 Urbi Desarrollos Urbanos Sab de C.V.
(USD) ............................. 9.50% 01/21/20 467,250
-------------
9,462,316
-------------
MULTINATIONAL - 12.4%
2,600,000 African Export-Import Bank (USD) ...... 5.75% 07/27/16 2,810,600
17,600,000 Asian Development Bank (AUD) .......... 5.50% 02/15/16 19,634,845
18,800,000 European Investment Bank (NZD) ........ 6.50% 09/10/14 16,532,684
-------------
38,978,129
-------------
NIGERIA - 1.0%
1,400,000 Access Finance B.V. (USD) (c).......... 7.25% 07/25/17 1,472,969
1,400,000 GTB Finance B.V. (USD) ................ 7.50% 05/19/16 1,541,855
-------------
3,014,824
-------------
PERU - 0.3%
780,000 Corp. Azucarera del Peru S.A. (USD) (c) 6.38% 08/02/22 826,800
-------------
PHILIPPINES - 0.3%
1,000,000 Alliance Global Group, Inc. (USD) ..... 6.50% 08/18/17 1,092,492
-------------
RUSSIA - 6.3%
1,750,000 Alfa Bank (USD) ....................... 7.88% 09/25/17 1,894,812
300,000 Alfa Bank OJSC Via Alfa Bond Issuance PLC
(USD) ............................. 7.75% 04/28/21 319,140
900,000 Gazprom Neft OAO via GPN Capital S.A.
(USD) (c).......................... 4.38% 09/19/22 900,000
See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
SEPTEMBER 30, 2012 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED VALUE
CURRENCY) DESCRIPTION COUPON STATED MATURITY (US DOLLARS)
--------------- ----------------------------------------- -------------- --------------- -------------
FOREIGN CORPORATE BONDS AND NOTES (b) - (CONTINUED)
RUSSIA - (CONTINUED)
1,200,000 Home Credit & Finance Bank via Eurasia
Capital S.A. (USD) ................ 7.00% 03/18/14 $ 1,237,500
1,400,000 Metalloinvest Finance Ltd. (USD) ...... 6.50% 07/21/16 1,428,000
1,000,000 Novolipetsk Steel OJSC via Steel Funding
(USD) (c).......................... 4.95% 09/26/19 1,000,000
83,700,000 Russian Agricultural Bank OJSC via RSHB
Capital S.A. (RUB) ................ 8.63% 02/17/17 2,777,032
170,000,000 RZD Capital Ltd. (RUB) ................ 8.30% 04/02/19 5,647,139
1,000,000 Sberbank of Russia via SB Capital S.A.
(USD) (c).......................... 6.13% 02/07/22 1,107,500
1,300,000 Vimpelcom Holdings B.V. (USD) ......... 7.50% 03/01/22 1,366,625
1,200,000 VTB Bank OJSC via VTB Capital S.A. (USD) 6.88% 05/29/18 1,294,560
850,000 VTB Bank OJSC via VTB Capital S.A. (USD) 6.55% 10/13/20 899,980
-------------
19,872,288
-------------
THAILAND - 0.2%
500,000 PTT Global Chemical PCL (USD) (c)...... 4.25% 09/19/22 509,650
-------------
TURKEY - 0.8%
800,000 Turkiye Vakiflar Bankasi (USD) (c)..... 5.75% 04/24/17 846,000
1,700,000 Yasar Holdings (USD) .................. 9.63% 10/07/15 1,704,250
-------------
2,550,250
-------------
UKRAINE - 0.8%
1,300,000 Metinvest B.V. (USD) .................. 10.25% 05/20/15 1,316,250
200,000 Metinvest B.V. (USD) .................. 8.75% 02/14/18 191,500
950,000 MHP S.A. (USD) ........................ 10.25% 04/29/15 969,000
-------------
2,476,750
-------------
UNITED ARAB EMIRATES - 1.0%
2,680,000 Dubai Electricity & Water Authority (USD) 7.38% 10/21/20 3,146,320
-------------
VENEZUELA - 1.7%
2,700,000 Petroleos de Venezuela S.A. (USD) ..... 8.00% 11/17/13 2,714,850
3,000,000 Petroleos de Venezuela S.A. (USD) ..... 8.50% 11/02/17 2,722,500
-------------
5,437,350
-------------
TOTAL FOREIGN CORPORATE BONDS AND NOTES ............................ 116,634,508
(Cost $100,832,980) -------------
SHARES DESCRIPTION VALUE
--------------- -------------------------------------------------------------------------- -------------
COMMON STOCKS - 0.0%
KAZAKHSTAN - 0.0%
342 BTA Bank JSC (g).................................................... $ 1
-------------
TOTAL COMMON STOCKS ................................................ 1
(Cost $0) -------------
TOTAL INVESTMENTS - 129.4% ......................................... 407,313,550
(Cost $351,505,568) (h)
OUTSTANDING LOAN - (31.2%) (98,111,594)
NET OTHER ASSETS AND LIABILITIES - (1.8%) .......................... 5,562,530
-------------
NET ASSETS - 100.0% ................................................ $ 314,764,486
=============
-----------------------------
(a) All of the portfolio securities within the Portfolio of Investments
are available to serve as collateral for the outstanding loans.
(b) Portfolio securities are included in a country based upon their
underlying credit exposure as determined by Aberdeen Asset
Management Inc., the Fund's investment sub-advisor.
(c) This security, sold within the terms of a private placement
memorandum, is exempt from registration upon resale under Rule 144A
of the Securities Act of 1933, as amended (the "1933 Act"), and may
be resold in transactions exempt from registration, normally to
qualified institutional buyers. Pursuant to procedures adopted by
the Fund's Board of Trustees, this security has been determined to
be liquid by the 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,
2012, securities noted as such amounted to $25,225,849 or 8.01% of
net assets.
(d) Security is a "step-up" bond where the coupon increases or steps up
at a predetermined date. The interest rate shown reflects the rate
in effect at September 30, 2012.
(e) Zero coupon bond.
(f) 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.
(g) Non-income producing security.
(h) Aggregate cost for financial reporting purposes, which approximates
the aggregate cost for federal income tax purposes. As of September
30, 2012, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was
$57,301,742 and the aggregate gross unrealized depreciation for all
securities in which there was an excess of tax cost over value was
$1,493,760.
See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
SEPTEMBER 30, 2012 (UNAUDITED)
Currency Abbreviations:
AUD Australian Dollar
BRL Brazilian Real
CAD Canadian Dollar
EUR Euro
GBP British Pound Sterling
HUF Hungarian Forint
IDR Indonesian Rupiah
MXN Mexican Peso
MYR Malaysian Ringgit
NZD New Zealand Dollar
PEN Peruvian New Sol
RSD Serbian Dinar
RUB Russian Ruble
TRY Turkish Lira
USD United States Dollar
UYU Uruguayan Peso
ZAR South African Rand
---------------------------------------------------------------------
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of September 30,
2012 is as follows (see Note A - 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
9/30/2012 PRICES INPUTS INPUTS
--------------- ------------- --------------- --------------
Foreign Sovereign Bonds and Notes*............ $ 290,679,041 $ -- $ 290,679,041 $ --
Foreign Corporate Bonds and Notes*............ 116,634,508 -- 116,634,508 --
Common Stocks*................................ 1 -- 1 --
--------------- ------------- -------------- --------------
Total Investments ............................ 407,313,550 -- 407,313,550 --
=============== ============= =============== ==============
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
9/30/2012 PRICES INPUTS INPUTS
--------------- ------------- -------------- --------------
Forward Foreign Currency Contracts**.......... $ (4,187,473) $ -- $ (4,187,473) $ --
=============== ============= =============== ==============
* 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. As of
September 30, 2012, the Fund transferred common stock valued $1 from Level 1 to
Level 2 of the fair value hierarchy. The common stock that transferred from
Level 1 to Level 2 did so as a result of a lack of trading volume on the primary
exchange on September 28, 2012, the last business day of the month.
See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
PORTFOLIO OF INVESTMENTS (a) - (CONTINUED)
SEPTEMBER 30, 2012 (UNAUDITED)
% OF TOTAL CURRENCY % OF TOTAL
INDUSTRY CLASSIFICATION INVESTMENTS DISTRIBUTION INVESTMENTS *
-------------------------------------------------------------- ----------------------------------------
Government Bonds and Notes 71.4 % USD 59.0%
Supranational Bank 8.9 AUD 13.2
Oil, Gas & Consumable Fuels 2.6 RUB 3.6
Commercial Banks 1.8 TRY 3.6
Diversified Financial Services 1.8 MXN 3.6
Household Durables 1.7 ZAR 3.3
Special Purpose Banks 1.7 BRL 3.1
Metals & Mining 1.6 MYR 1.9
Road & Rail 1.4 HUF 1.5
Electric Utilities 1.3 UYU 1.4
Consumer Finance 1.0 NZD 1.3
Real Estate Management & Development 1.0 RSD 1.2
Multi-Utilities 0.8 PEN 1.2
Food Products 0.7 GBP 0.9
Wireless Telecommunication Services 0.7 IDR 0.9
Machinery 0.5 CAD 0.2
Diversified Telecommunication Services 0.4 EUR 0.1
Construction & Engineering 0.3 KZT 0.0 **
Construction Materials 0.2 ----------------------------------------
Energy Equipment & Services 0.1 Total 100.0
Chemicals 0.1 ===============
--------------------------------------------------------------
Total 100.0 * The weightings include the impact of
============== currency forwards.
** Amount is less than 0.01%.
See Notes to Quarterly Portfolio of Investments
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
SCHEDULE OF FORWARD FOREIGN CURRENCY CONTRACTS
SEPTEMBER 30, 2012 (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) 2012 2012 (DEPRECIATION)
---------- -------------- -------------------- ------------------ --------------- --------------- --------------
12/05/12 JPM USD 7,204,685 BRL 14,949,000 $ 7,204,685 $ 7,310,441 $ (105,756)
10/24/12 MS USD 13,166,912 CAD 13,391,000 13,166,912 13,613,529 (446,617)
10/24/12 JPM USD 2,191,926 EUR 1,780,000 2,191,926 2,288,000 (96,074)
10/24/12 CIT USD 14,326,422 GBP 9,224,000 14,326,422 14,893,710 (567,288)
10/24/12 JPM USD 7,232,979 HUF 1,711,960,000 7,232,979 7,684,552 (451,573)
12/05/12 JPM USD 2,632,740 IDR 25,708,706,000 2,632,740 2,660,714 (27,974)
10/24/12 RBS USD 1,090,384 MXN 14,348,000 1,090,384 1,111,441 (21,057)
10/24/12 DB USD 26,338,566 NZD 33,323,000 26,338,566 27,570,101 (1,231,535)
10/24/12 MS USD 26,330,502 NZD 33,323,000 26,330,502 27,570,101 (1,239,599)
--------------
Net Unrealized Appreciation (Depreciation)........................................... $ (4,187,473)
==============
(a) Please see Portfolio of Investments for currency descriptions.
Counterparty Abbreviations:
CIT Citibank, NA
DB Deutsche Bank
JPM JPMorgan Chase
MS Morgan Stanley
RBS Royal Bank of Scotland
See Notes to Quarterly Portfolio of Investments
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
SEPTEMBER 30, 2012 (UNAUDITED)
VALUATION AND INVESTMENT PRACTICES
A. PORTFOLIO VALUATION:
The net asset value ("NAV") of the Common Shares of First Trust/Aberdeen Global
Opportunity Income Fund (the "Fund") is determined daily as of the close of
regular trading on the New York Stock Exchange ("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 in accordance with valuation procedures
adopted by the Fund's Board of Trustees and in accordance with provisions of the
Investment Company Act of 1940, as amended (the "1940 Act"). All securities of
the Fund initially expressed in foreign currencies will be converted to U.S.
dollars using exchange rates in effect at the time of valuation. The Fund's
securities will be valued as follows:
Bonds, notes and other debt securities are 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.
Common stocks and other securities listed on any national or foreign
exchange (excluding the NASDAQ National Market ("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. If
there are no transactions on the valuation day, the securities are valued
at the mean between the most recent bid and asked prices.
Securities listed on the NASDAQ or the AIM are valued at the official
closing price. If there is no official closing price on the valuation day,
the securities are valued at the mean between the most recent bid and
asked prices.
Securities traded in the over-the-counter market are valued at their
closing bid prices.
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.
Debt securities having a remaining maturity of sixty days or less when
purchased are valued at cost adjusted for amortization of premiums and
accretion of discounts.
In the event that market quotations are not readily available, the pricing
service does not provide a valuation for a particular asset, or the valuations
are deemed unreliable, the Fund's Board of Trustees has designated First Trust
Advisors L.P. ("First Trust") to use a fair value method to value the Fund's
securities and other investments. Additionally, if events occur after the close
of the principal market for particular securities (e.g., domestic debt and
foreign securities), but before the Fund values its assets, that could
materially affect NAV, First Trust may use a fair value method to value the
Fund's securities and other investments. The use of fair value pricing by the
Fund is governed by valuation procedures adopted by the Fund's Board of
Trustees, and in accordance with the provisions of the 1940 Act. As a general
principle, the fair value of a security is the amount which the Fund might
reasonably expect to receive for the security upon its current sale. However, in
light of the judgment involved in fair valuations, there can be no assurance
that a fair value assigned to a particular security will be the amount which the
Fund might be able to receive upon its current sale. Fair valuation of a
security will be based on the consideration of all available information,
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;
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS - (CONTINUED)
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
SEPTEMBER 30, 2012 (UNAUDITED)
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, 2012, 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, 2012, 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 may use forward foreign currency contracts to facilitate transactions in
foreign securities and to manage the Fund's foreign currency exposure. These
contracts are valued daily, and the Fund's net equity therein, representing
unrealized gain or loss on the contracts as measured by the difference between
the forward foreign exchange rates at the dates of entry into the contracts and
the forward rates at the reporting date, is included on the 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 and 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.
During the period ended September 30, 2012, the open and close notional values
of forward foreign currency contracts were $658,178,605 and $660,833,331,
respectively.
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS - (CONTINUED)
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
SEPTEMBER 30, 2012 (UNAUDITED)
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 19, 2012
------------------------
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 19, 2012
------------------------
By (Signature and Title)* /s/ James M. Dykas
------------------------------------------------
James M. Dykas, Treasurer,
Chief Financial Officer and
Chief Accounting Officer
(principal financial officer)
Date November 19, 2012
------------------------
* Print the name and title of each signing officer under his or her signature.