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, 2010
Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (Sections 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. Section 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) (b)
SEPTEMBER 30, 2010 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------------------------- ------ -------- ------------
BONDS AND NOTES (c) - 124.1%
ARGENTINA - 5.2%
10,823,095 Republic of Argentina (ARS) (d) ........................... 2.00% 02/04/18 $ 5,460,677
13,100,000 Republic of Argentina (USD) ............................... 7.00% 04/17/17 10,759,831
------------
16,220,508
------------
AUSTRALIA - 9.6%
11,000,000 Australian Government (AUD) ............................... 6.00% 02/15/17 11,259,105
11,500,000 Instituto de Credito Oficial (AUD) ........................ 5.50% 10/11/12 10,720,031
8,100,000 Queensland Treasury (AUD) ................................. 6.00% 10/14/15 8,099,696
------------
30,078,832
------------
BELARUS - 0.9%
2,700,000 Republic of Belarus (USD) ................................. 8.75% 08/03/15 2,804,220
------------
BRAZIL - 9.1%
13,600,000 Brazil Notas do Tesouro Nacional Series F (BRL) ........... 10.00% 01/01/13 7,749,306
11,370,000 Brazil Notas do Tesouro Nacional Series F (BRL) ........... 10.00% 01/01/17 6,221,163
8,380,000 Brazil Notas do Tesouro Nacional Series F (BRL) ........... 10.00% 01/01/21 4,443,386
524,000 Dasa Finance Corp. (USD) .................................. 8.75% 05/29/18 591,334
2,600,000 Gerdau Trade (USD) ........................................ 5.75% 01/30/21 2,640,950
2,280,000 Globo Communicacaos S.A. (USD) ............................ 6.25% 12/01/49 2,333,580
1,150,000 Odebrecht Finance Ltd. (USD) .............................. 7.50% 09/14/15 1,155,290
630,000 Petrobras International Finance Co. (USD) ................. 7.88% 03/15/19 788,162
2,350,000 Rearden G Holdings Eins GmbH (USD) ........................ 7.88% 03/30/20 2,520,375
------------
28,443,546
------------
CANADA - 12.2%
4,840,000 Canadian Government (CAD) ................................. 8.50% 06/01/11 4,930,365
1,700,000 Canadian Government (CAD) ................................. 5.25% 06/01/13 1,813,956
10,000,000 Export Development Canada (NZD) ........................... 8.13% 11/30/10 7,389,380
3,650,000 KfW International Finance (CAD) ........................... 4.95% 10/14/14 3,915,862
15,000,000 Province of Manitoba (NZD) ................................ 6.38% 09/01/15 11,756,442
10,965,000 Province of Ontario (NZD) ................................. 6.25% 06/16/15 8,543,380
------------
38,349,385
------------
COLOMBIA - 1.5%
3,230,000,000 Republic of Columbia (COP) ................................ 7.75% 04/14/21 2,109,132
2,200,000 TGI International Ltd. (USD) .............................. 9.50% 10/03/17 2,505,250
------------
4,614,382
------------
DOMINICAN REPUBLIC - 1.3%
1,770,000 Cerveceria Nacional Dominica (USD) (d) .................... 16.00% 03/27/12 1,646,100
2,066,000 Dominican Republic (USD) .................................. 8.63% 04/20/27 2,453,375
------------
4,099,475
------------
EGYPT - 2.4%
28,700,000 Egypt Treasury Bill (EGP) ................................. (e) 10/05/10 5,040,044
15,000,000 Egypt Treasury Bills (EGP) ................................ (e) 11/16/10 2,606,583
------------
7,646,627
------------
See Notes to Quarterly Portfolio of Investments
Page 1
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
PORTFOLIO OF INVESTMENTS (a) (b) - (CONTINUED)
SEPTEMBER 30, 2010 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------------------------- ------ -------- ------------
BONDS AND NOTES (c) - (CONTINUED)
EL SALVADOR - 2.1%
700,000 Republic of El Salvador (USD) ............................. 8.25% 04/10/32 $ 801,500
3,230,000 Republic of El Salvador (USD) ............................. 7.65% 06/15/35 3,528,775
2,300,000 Telemovil Finance Ltd. (USD) .............................. 8.00% 10/01/17 2,392,000
------------
6,722,275
------------
HONG KONG - 0.8%
2,290,000 CFG Investment S.A.C. (USD) ............................... 9.25% 12/19/13 2,433,125
------------
HUNGARY - 3.5%
771,070,000 Hungary Government Bond (HUF) ............................. 6.00% 10/24/12 3,796,733
328,000,000 Hungary Government Bond (HUF) ............................. 5.50% 02/12/16 1,544,305
1,169,700,000 Hungary Government Bond (HUF) ............................. 6.50% 06/24/19 5,672,349
------------
11,013,387
------------
INDONESIA - 9.2%
1,950,000 Berau Capital Resources (USD) ............................. 12.50% 07/08/15 2,184,306
1,210,000 Indo Integrated Energy II B.V. (USD) ...................... 9.75% 11/05/16 1,386,963
14,000,000,000 Indonesian Government Bond (IDR) .......................... 12.50% 03/15/13 1,770,913
42,200,000,000 Indonesian Government Bond (IDR) .......................... 10.75% 05/15/16 5,473,900
62,000,000,000 Indonesian Government Bond (IDR) .......................... 10.50% 08/15/30 8,337,892
7,170,000,000 Indonesian Recapitalization Bond (IDR) .................... 13.40% 02/15/11 825,408
14,200,000,000 Indonesian Recapitalization Bond (IDR) .................... 13.45% 08/15/11 1,691,585
1,000,000 Indosat Palapa (USD) ...................................... 7.38% 07/29/20 1,107,500
3,220,000 Majapahit Holding B.V. (USD) .............................. 7.75% 10/17/16 3,767,564
2,200,000 Star Energy Geothermal (Wayang Windu) Ltd. (USD) .......... 11.50% 02/12/15 2,480,500
------------
29,026,531
------------
IVORY COAST - 0.8%
4,580,000 Ivory Coast Government Bond (USD) ......................... 2.50% 12/31/32 2,690,750
------------
KAZAKHSTAN - 1.8%
1,743,160 BTA Bank JSC (USD) (f) (g) ................................ 10.75% 07/01/18 1,778,023
3,601,197 BTA Bank JSC (USD) (d) (f) ................................ 0.00% 07/01/20 180,060
394,970 BTA Bank JSC (USD) (f) .................................... 7.20% 07/01/25 280,429
450,000 Kazakhstan Temir Zholy (USD) .............................. 6.38% 10/06/20 450,000
2,570,000 KazMunaiGaz Finance Sub B.V. (USD) ........................ 7.00% 05/05/20 2,846,275
------------
5,534,787
------------
LITHUANIA - 1.5%
2,390,000 Republic of Lithuania (USD) ............................... 6.75% 01/15/15 2,598,528
1,980,000 Republic of Lithuania (USD) ............................... 7.38% 02/11/20 2,220,075
------------
4,818,603
------------
MALAYSIA - 1.0%
2,400,000 Petronas Capital Ltd. (USD) ............................... 7.88% 05/22/22 3,280,675
------------
See Notes to Quarterly Portfolio of Investments
Page 2
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
PORTFOLIO OF INVESTMENTS (a)(b) - (CONTINUED)
SEPTEMBER 30, 2010 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------------------------- ------ -------- ------------
BONDS AND NOTES (c) - (CONTINUED)
MEXICO - 10.1%
1,610,000 Axtel S.A.B. de C.V. (USD) ................................ 9.00% 09/22/19 $ 1,493,275
2,510,000 BBVA Bancomer S.A./Texas (USD) ............................ 7.25% 04/22/20 2,702,617
2,320,000 Corp. Geo S.A. de C.V. (USD) .............................. 8.88% 09/25/14 2,586,800
1,150,000 Corp. Geo S.A. de C.V. (USD) .............................. 9.25% 06/30/20 1,290,300
2,100,000 Corporativo Javer S.A. de C.V. (USD) ...................... 13.00% 08/04/14 2,404,500
2,400,000 Desarrolladora Homex S.A. (USD) ........................... 9.50% 12/11/19 2,712,000
1,600,000 Grupo Posadas S.A.B. de C.V. (USD) ........................ 9.25% 01/15/15 1,536,800
102,400,000 Mexican Bonos Desarr Fixed Rate Bond (MXN) ................ 8.00% 06/11/20 9,249,735
32,950,000 Mexican Bonos Desarr Fixed Rate Bond (MXN) ................ 10.00% 11/20/36 3,533,817
25,900,000 Mexico Cetes (MXN) ........................................ (e) 12/09/10 2,037,816
390,000 Pemex Project Funding Master Trust (USD) .................. 5.75% 03/01/18 429,312
1,060,000 Pemex Project Funding Master Trust (USD) .................. 6.63% 06/15/38 1,146,585
650,000 Petroleos Mexicanos (USD) ................................. 5.50% 01/21/21 696,118
------------
31,819,675
------------
MULTINATIONAL - 10.6%
17,600,000 Asian Development Bank (AUD) .............................. 5.50% 02/15/16 16,967,016
18,800,000 European Investment Bank (NZD) ............................ 6.50% 09/10/14 14,842,676
1,500,000 Nordic Investment Bank (AUD) .............................. 5.38% 01/18/11 1,449,863
------------
33,259,555
------------
NIGERIA - 0.8%
2,350,000 GTB Finance B.V. (USD) .................................... 8.50% 01/29/12 2,429,430
------------
NORWAY - 2.3%
10,000,000 Kommunalbanken AS (NZD) ................................... 8.00% 10/19/10 7,349,708
------------
PERU - 1.2%
8,500,000 Peru Bono Soberano (PEN) .................................. 8.20% 08/12/26 3,643,733
------------
PHILIPPINES - 1.0%
1,000,000 Alliance Global Group (USD) ............................... 6.50% 08/18/17 1,000,900
1,770,000 Republic of Philippines (USD) ............................. 6.38% 10/23/34 2,073,774
------------
3,074,674
------------
QATAR - 1.0%
2,630,000 State of Qatar (USD) ...................................... 6.40% 01/20/40 3,142,850
------------
RUSSIA - 2.5%
1,750,000 Alfa Bank (USD) ........................................... 7.88% 09/25/17 1,762,775
2,400,000 LUKOIL International Finance B.V. (USD) ................... 7.25% 11/05/19 2,621,160
700,000 Russian Railways (USD) .................................... 5.74% 04/03/17 739,725
2,500,000 Vnesheconombank (USD) ..................................... 6.90% 07/09/20 2,737,500
------------
7,861,160
------------
See Notes to Quarterly Portfolio of Investments
Page 3
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
PORTFOLIO OF INVESTMENTS (a)(b) - (CONTINUED)
SEPTEMBER 30, 2010 (UNAUDITED)
PRINCIPAL
VALUE
(LOCAL STATED VALUE
CURRENCY) DESCRIPTION COUPON MATURITY (US DOLLARS)
--------------- ----------------------------------------------------------- ------ -------- ------------
BONDS AND NOTES (c) - (CONTINUED)
SOUTH AFRICA - 6.6%
47,300,000 Republic of South Africa (ZAR) ............................ 8.25% 09/15/17 $ 6,994,598
61,000,000 Republic of South Africa (ZAR) ............................ 7.25% 01/15/20 8,398,760
29,900,000 Republic of South Africa (ZAR) ............................ 10.50% 12/21/26 5,266,029
------------
20,659,387
------------
TURKEY - 5.3%
1,750,000 Akbank TAS (USD) .......................................... 5.13% 07/22/15 1,751,925
5,000,000 Turkey Government Bond (TRY) .............................. (e) 11/03/10 3,437,005
5,845,000 Turkey Government Bond (TRY) .............................. 16.00% 03/07/12 4,476,028
4,900,000 Turkey Government Bond (USD) .............................. 5.63% 03/30/21 5,352,515
1,700,000 Yasar Holdings (USD) ...................................... 9.63% 10/07/15 1,700,000
------------
16,717,473
------------
UKRAINE - 2.3%
6,043,000 EX-IM Bank of Ukraine (USD) ............................... 7.65% 09/07/11 6,141,199
1,000,000 Ukraine Government Bond (USD) ............................. 6.39% 06/26/12 1,020,000
------------
7,161,199
------------
UNITED ARAB EMIRATES - 1.6%
2,370,000 Atlantic Finance Ltd. (USD) ............................... 9.75% 05/27/14 2,572,635
2,400,000 Dubai Electricity & Water Authority (USD) ................. 8.50% 04/22/15 2,586,038
------------
5,158,673
------------
UNITED KINGDOM - 10.1%
2,750,000 Continental Trustees (USD) (d) ............................ 7.38% 10/07/40 2,750,000
8,000,000 United Kingdom Treasury (GBP) ............................. 6.25% 11/25/10 12,674,073
1,200,000 United Kingdom Treasury (GBP) ............................. 8.00% 12/07/15 2,465,259
4,600,000 United Kingdom Treasury (GBP) ............................. 6.00% 12/07/28 9,505,163
2,520,000 United Kingdom Treasury (GBP) ............................. 4.25% 12/07/49 4,225,240
------------
31,619,735
------------
URUGUAY - 1.8%
73,930,000 Republic Orient Uruguay,
Inflation Adjusted Bond (UYU) (h) ......................... 5.00% 09/14/18 5,581,867
------------
VENEZUELA - 4.0%
400,000 Bolivarian Republic of Venezuela (USD) .................... 7.75% 10/13/19 272,000
6,300,000 Republic of Venezuela (USD) ............................... 8.50% 10/08/14 5,323,500
9,770,000 Republic of Venezuela (USD) ............................... 5.75% 02/26/16 6,827,276
------------
12,422,776
------------
TOTAL INVESTMENTS - 124.1% .................................................... 389,679,003
(Cost $350,290,253) (i)
OUTSTANDING LOANS - (28.3)% ................................................... (88,848,652)
NET OTHER ASSETS AND LIABILITIES - 4.2% ....................................... 13,085,942
------------
NET ASSETS - 100.0% ........................................................... $313,916,293
============
See Notes to Quarterly Portfolio of Investments
Page 4
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
SEPTEMBER 30, 2010 (UNAUDITED)
(a) All percentages shown in the Portfolio of Investments are based on net
assets.
(b) All portfolio securities are available to serve as collateral for the
outstanding loans.
(c) Portfolio securities are included in a country based upon their underlying
credit exposure as determined by Aberdeen Asset Management Inc., the
investment sub-advisor.
(d) Variable rate security. The interest rate shown reflects the rate in effect
at September 30, 2010.
(e) Zero coupon bond.
(f) This security, sold within the terms of a private placement memorandum, is
exempt from registration under Rule 144A of 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 the Fund's investment sub-advisor. At September 30, 2010,
securities noted as such amounted to $2,238,512 or 0.7% of net assets.
(g) Security is a "step-up" bond where the coupon increases or steps up at a
predetermined date.
(h) 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.
(i) Aggregate cost for financial reporting purposes, which approximates the
aggregate cost for federal income tax purposes. As of September 30, 2010,
the aggregate gross unrealized appreciation for all securities in which
there was an excess of value over tax cost was $40,000,931 and the
aggregate gross unrealized depreciation for all securities in which there
was an excess of tax cost over value was $612,181.
Currency Abbreviations:
ARS Argentine Peso
AUD Australian Dollar
BRL Brazilian Real
CAD Canadian Dollar
COP Colombian Peso
EGP Egyptian Pound
GBP British Pound Sterling
HUF Hungarian Forint
IDR Indonesian Rupiah
MXN Mexican Peso
NZD New Zealand Dollar
PEN Peruvian New Sol
TRY Turkish Lira
USD United States Dollar
UYU Uruguayan Peso
ZAR South African Rand
See Notes to Quarterly Portfolio of Investments
Page 5
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
SEPTEMBER 30, 2010 (UNAUDITED)
VALUATION INPUTS
A summary of the inputs used to value the Fund's investments as of September 30,
2010 is as follows (see Note 1A - 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
9/30/2010 PRICES INPUTS INPUTS
------------ -------- ------------ ------------
Bonds and Notes* ......................... $389,679,003 $ -- $389,679,003 $--
------------ -------- ------------ ---
Total Investments ........................ 389,679,003 -- 389,679,003 --
------------ -------- ------------ ---
Other Financial Instruments:
Forward Foreign Currency Contracts** ..... 192,202 192,202 -- --
------------ -------- ------------ ---
Total .................................... $389,871,205 $192,202 $389,679,003 $--
============ ======== ============ ===
LIABILITIES TABLE
LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
9/30/2010 PRICES INPUTS INPUTS
----------- ----------- ----------- ------------
Forward Foreign Currency Contracts** ..... $(3,874,094) $(3,874,094) $-- $--
=========== =========== === ===
* See the Portfolio of Investments for country breakout.
** See the Schedule of Forward Foreign Currency Contracts for contract and
currency detail.
% OF TOTAL
INDUSTRY CLASSIFICATION INVESTMENTS
-------------------------------------- -----------
Government Bonds and Notes 58.7%
Supranational Bank 8.5
Regional Authority 7.3
Special Purpose Banks 3.7
Oil, Gas & Consumable Fuels 3.3
Commercial Banks 2.8
Diversified Financial Services 2.8
Electric Utilities 2.3
Diversified Telecommunication Services 1.9
Household Durables 1.7
Import/Export Bank 1.6
Construction Materials 1.3
Metals & Mining 0.7
Real Estate Management & Development 0.7
Transportaion Infrastructure 0.6
Food Products 0.6
Beverages 0.4
Hotels, Restaurants & Leisure 0.4
Road & Rail 0.3
Construction & Engineering 0.3
Healthcare 0.1
-----
Total 100.0%
=====
See Notes to Quarterly Portfolio of Investments
Page 6
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
SCHEDULE OF FORWARD FOREIGN CURRENCY CONTRACTS
SEPTEMBER 30, 2010 (UNAUDITED)
FORWARD FOREIGN CURRENCY CONTRACTS TO BUY
CONTRACTS TO RECEIVE
-------------------------------------------- NET NET
LOCAL UNREALIZED UNREALIZED
CURRENCY IN APPRECIATION DEPRECIATION
SETTLEMENT LOCAL VALUE IN EXCHANGE OF CONTRACTS OF CONTRACTS
DATE COUNTERPARTY CURRENCY (A) U.S. $ FOR U.S. $ U.S. $ U.S. $
---------- ------------ ------------------ ---------- ---------- ------------ ------------
10/22/10 BAR CAD 521,000 $ 506,115 $ 495,350 $ 10,765 $ --
10/22/10 RBS HUF 96,208,000 473,495 442,820 30,675 --
10/22/10 JPM HUF 182,629,000 898,822 845,896 52,926 --
12/03/10 JPM IDR 10,562,134,000 1,169,982 1,175,529 -- (5,547)
10/22/10 JPM MXN 32,370,000 2,564,309 2,466,473 97,836 --
-------- -------
$192,202 $(5,547)
-------- -------
FORWARD FOREIGN CURRENCY CONTRACTS TO SELL
CONTRACTS TO DELIVER
---------------------------------------------- NET NET
LOCAL UNREALIZED UNREALIZED
CURRENCY IN APPRECIATION DEPRECIATION
SETTLEMENT LOCAL VALUE IN EXCHANGE OF CONTRACTS OF CONTRACTS
DATE COUNTERPARTY CURRENCY (A) U.S. $ FOR U.S. $ U.S. $ U.S. $
---------- ------------ ------------------ ----------- ----------- ------------ ------------
12/03/10 JPM BRL 14,949,000 $ 8,714,855 $ 8,281,994 $ -- $ (432,861)
10/22/10 BAR CAD 11,197,000 10,877,108 10,615,786 -- (261,322)
10/22/10 CIT GBP 18,514,000 29,079,018 28,369,743 -- (709,275)
10/22/10 JPM HUF 942,544,000 4,638,799 4,297,085 -- (341,714)
12/03/10 RBS IDR 10,562,134,000 1,169,982 1,149,098 -- (20,884)
10/22/10 CIT MXN 32,370,000 2,564,309 2,493,049 -- (71,260)
10/22/10 DUB NZD 68,463,000 50,141,007 48,391,702 -- (1,749,305)
10/22/10 JPM ZAR 18,500,000 2,644,607 2,403,034 -- (241,573)
10/22/10 CIT ZAR 4,628,000 661,581 621,228 -- (40,353)
-------- -----------
$ -- $(3,868,547)
-------- -----------
Unrealized Appreciation (Depreciation)..................................... $192,202 $(3,874,094)
======== ===========
Net Unrealized Appreciation (Depreciation).............................................. $(3,681,892)
===========
(a) Please see page 5 for currency descriptions.
Counterparty Abbreviations:
BAR Barclay's Bank PLC
CIT Citibank, NA
DUB Deutche Bank
JPM JPMorgan Chase
RBS Royal Bank of Scotland
See Notes to Quarterly Portfolio of Investments
Page 7
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
SEPTEMBER 30, 2010 (UNAUDITED)
1. 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. 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 the absence of
market value with respect to any portfolio securities, at fair value according
to procedures adopted by the Fund's Board of Trustees. A majority of the Fund's
assets are valued using market information supplied by third parties. In
addition, structured products, including currency linked notes and credit linked
notes, as well as interest rate swaps and credit default swaps, are valued using
a pricing service or quotes provided by the selling dealer or financial
institution. 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 Investment Company Act of
1940, as amended (the "1940 Act"). Fixed-income securities with a remaining
maturity of 60 days or more will be valued by the Fund using a pricing service.
Short-term investments that mature in less than 60 days when purchased are
valued at amortized cost.
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:
- Level 1 - Level 1 inputs are quoted prices in active markets for
identical securities. An active market is a market in which
transactions for the security occur with sufficient
frequency and volume to provide pricing information on an
ongoing basis.
- Level 2 - Level 2 inputs are observable inputs, either directly or
indirectly, and include the following:
- Quoted prices for similar securities in active markets.
- Quoted prices for identical or similar securities in
markets that are non-active. A non-active market is a
market where there are few transactions for the
security, 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.
- Inputs other than quoted prices that are observable for
the security (for example, interest rates and yield
curves observable at commonly quoted intervals,
volatilities, prepayment speeds, loss severities,
credit risks, and default rates).
- Inputs that are derived principally from or
corroborated by observable market data by correlation
or other means.
- Level 3 - Level 3 inputs are unobservable inputs. Unobservable inputs
reflect the reporting entity's own assumptions about the
assumptions that market participants would use in pricing
the security.
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. A summary
of the inputs used to value the Fund's investments as of September 30, 2010, 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 or delayed-delivery basis may be
settled a month or more after the trade date; interest income on such securities
is not accrued until settlement date. The Fund maintains liquid assets with a
current value at least equal to the amount of its when-issued or
delayed-delivery purchase commitments. As of September 30, 2010, the Fund had no
when-issued or delayed-delivery purchase commitments.
Page 8
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS - (CONTINUED)
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
SEPTEMBER 30, 2010 (UNAUDITED)
C. CREDIT LINKED NOTES:
The Fund may invest in credit linked notes. Credit linked notes are securities
that are collateralized by one or more designated securities that are referred
to as "reference securities". Through the purchase of a credit linked note, the
buyer assumes the risk of the default or, in some cases, other declines in
credit quality of the reference securities. The buyer also takes on exposure to
the issuer of the credit linked note in the full amount of the purchase price of
the note. The issuer of a credit linked note normally will have hedged its risk
on the reference securities without acquiring any additional credit exposure.
The Fund has the right to receive periodic interest payments from the issuer of
the credit linked note at an agreed-upon interest rate, and, if there has been
no default or, if applicable, other declines in credit quality, a return of
principal at the maturity date.
Credit linked notes are subject to credit risk of the reference securities
underlying the credit linked notes. If one of the underlying reference
securities defaults, or suffers certain other declines in credit quality, the
Fund may, instead of receiving repayment of principal in whole or in part,
receive the security that has defaulted.
Credit linked notes typically are privately negotiated transactions between two
or more parties. The Fund bears the risk that the issuer of the credit linked
note will default or become bankrupt. The Fund bears the risk of loss of the
principal amount it invested, and the periodic interest payments expected to be
received for the duration of its investment in the credit linked note.
The market for credit linked notes may suddenly become illiquid. The other
parties to the transaction may be the only investors with sufficient
understanding of the derivative to be interested in bidding for it. Changes in
liquidity may result in significant, rapid and unpredictable changes in the
prices for credit linked notes. In certain cases, a market price for a credit
linked note may not be available.
D. 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 up to the entire contract amount, which would exceed the net
unrealized value shown on the Schedule of Forward Foreign Currency Contracts.
During the period ended September 30, 2010, the open and close values of forward
foreign currency contracts were $58,343,961 and $2,690,349, respectively.
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 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.
2. SUBSEQUENT EVENT
On October 12, 2010, First Trust announced that James A. Bowen, its President,
acquired 100% of the voting stock of The Charger Corporation, the general
partner of First Trust (the "Transaction"). First Trust is a limited partnership
with one limited partner and one general partner (The Charger Corporation). The
Transaction is not expected to impact the day-to-day operations of the Fund. The
consummation of the Transaction is deemed to be an "assignment" (as defined in
the 1940 Act) of the Fund's investment management agreement and investment
sub-advisory agreement and resulted in the automatic termination of the
agreements.
The Board of Trustees of the Fund has approved an interim investment management
agreement with First Trust and an interim investment sub-advisory agreement,
which were entered into effective upon the closing of the Transaction and will
be in effect for a maximum period of 150 days. A new investment management
agreement with First Trust and a new investment sub-advisory agreement have been
approved by the Board of Trustees of the Fund and will be submitted to
shareholders of the Fund as of the record date (September 30, 2010) for approval
and will take effect upon such shareholder approval. A special shareholder
meeting of the Fund to vote on a proposal to approve the new investment
management and the new investment sub-advisory agreement is expected to be held
on December 6, 2010.
Page 9
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/ James A. Bowen
------------------------------------------------------
James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date November 23, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ James A. Bowen
------------------------------------------------------
James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date November 23, 2010
By (Signature and Title)* /s/ Mark R. Bradley
------------------------------------------------------
Mark R. Bradley, Treasurer, Chief Financial Officer
and Chief Accounting Officer
(principal financial officer)
Date November 23, 2010
* Print the name and title of each signing officer under his or her
signature.