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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| First Trust abrdn Global Opportunity Income Fund | NYSE:FAM | NYSE | Common Stock |
| Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 6.51 | 0 | 00:00:00 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21636
(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:
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
| (a) | The Report to Shareholders is attached herewith. |
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| Performance | ||||
| Average Annual Total Returns | ||||
| 1
Year Ended 12/31/23 |
5
Years Ended 12/31/23 |
10
Years Ended 12/31/23 |
Inception
(11/23/04) to 12/31/23 | |
| Fund Performance(3) | ||||
| NAV | 15.69% | 0.29% | 1.38% | 4.31% |
| Market Value | 17.08% | 1.72% | 1.29% | 3.54% |
| Index Performance | ||||
| Blended Index(4) | 9.58% | 0.32% | 0.86% | 3.45% |
| Bloomberg Global Emerging Markets Index | 9.63% | 1.36% | 2.47% | 5.19% |
| Bloomberg Global Aggregate Index | 5.71% | -0.32% | 0.38% | 2.15% |
| Fund Allocation | % of Net Assets |
| Foreign Sovereign Bonds and Notes | 73.9% |
| Foreign Corporate Bonds and Notes | 28.1 |
| U.S. Government Bonds and Notes | 18.3 |
| Outstanding Loan | (23.6) |
| Net Other Assets and Liabilities(5) | 3.3 |
| Total | 100.0% |
| (1) | Most recent distribution paid through December 31, 2023. Subject to change in the future. |
| (2) | Distribution rates are calculated by annualizing the most recent distribution paid through the report date and then dividing by Common Share Price or NAV, as applicable, as of December 31, 2023. Subject to change in the future. |
| (3) | Total return is based on the combination of reinvested dividend, capital gain, and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan and changes in NAV per share for NAV returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results. |
| (4) | Blended Index consists of the following: FTSE World Government Bond Index (40.0%); JPMorgan Emerging Markets Bond Index - Global Diversified (30.0%); JPMorgan Global Bond Index - Emerging Markets Diversified (30.0%). The Blended Index returns are calculated by using the monthly return of the three indices during each period shown above. At the beginning of each month the three indices are rebalanced to a 40.0%, 30.0%, and 30.0% ratio, respectively, to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Index for each period shown above. |
| (5) | Includes forward foreign currency contracts. |
| (6) | The credit quality and ratings information presented above reflects the ratings assigned by one or more nationally recognized statistical rating organizations (NRSROs), including S&P Global Ratings, 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. Sub-investment grade ratings are those rated BB+/Ba1 or lower. Investment grade ratings are those rated BBB-/Baa3 or higher. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change. |
| (7) | Portfolio securities are included in a country based upon their underlying credit exposure as determined by abrdn Inc., the sub-advisor. |
| Average Annual Total Returns | ||||
| 1
Year Ended 12/31/23 |
5
Years Ended 12/31/23 |
10
Years Ended 12/31/23 |
Inception
(11/23/04) to 12/31/23 | |
| Fund Performance(1) | ||||
| NAV | 15.69% | 0.29% | 1.38% | 4.31% |
| Market Value | 17.08% | 1.72% | 1.29% | 3.54% |
| Index Performance | ||||
| Blended Index(2) | 9.58% | 0.32% | 0.86% | 3.45% |
| Bloomberg Global Emerging Markets Index | 9.63% | 1.36% | 2.47% | 5.19% |
| Bloomberg Global Aggregate Index | 5.71% | -0.32% | 0.38% | 2.15% |
| (1) | Total return is based on the combination of reinvested dividend, capital gain and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan and changes in NAV per share for NAV returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. |
| (2) | Blended Index consists of the following: FTSE World Government Bond Index (40.0%); JPMorgan Emerging Markets Bond Index – Global Diversified (30.0%); JPMorgan Global Bond Index – Emerging Markets Diversified (30.0%). The Blended Index returns are calculated by using the monthly return of the three indices during each period shown above. At the beginning of each month the three indices are rebalanced to a 40.0%, 30.0%, and 30.0% ratio, respectively, to account for divergence from that ratio that occurred during the course of each month. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Index for each period shown above. |
| Principal Value (Local Currency) |
Description | Stated Coupon |
Stated Maturity |
Value (US Dollars) | ||||
| FOREIGN SOVEREIGN BONDS AND NOTES (a) – 73.9% | ||||||||
| Angola – 1.7% | ||||||||
| 1,444,000 |
Angolan Government International Bond (USD) (b) |
9.13% | 11/26/49 | $1,182,275 | ||||
| Argentina – 2.2% | ||||||||
| 383,926 |
Argentine Republic Government International Bond (USD) |
1.00% | 07/09/29 | 154,338 | ||||
| 385,881 |
Argentine Republic Government International Bond (USD) (c) |
0.75% | 07/09/30 | 155,706 | ||||
| 2,949,672 |
Argentine Republic Government International Bond (USD) (c) |
3.63% | 07/09/35 | 1,019,304 | ||||
| 543,200 |
Argentine Republic Government International Bond (USD) (c) |
4.25% | 01/09/38 | 216,288 | ||||
| 1,545,636 | ||||||||
| Australia – 5.7% | ||||||||
| 7,000,000 |
Treasury Corp. of Victoria (AUD) |
1.50% | 11/20/30 | 3,978,351 | ||||
| Bahrain – 1.3% | ||||||||
| 500,000 |
Bahrain Government International Bond (USD) (d) |
4.25% | 01/25/28 | 472,785 | ||||
| 510,000 |
Bahrain Government International Bond (USD) (b) |
6.25% | 01/25/51 | 423,809 | ||||
| 896,594 | ||||||||
| Brazil – 8.8% | ||||||||
| 5,079,000 |
Brazil Notas do Tesouro Nacional, Series F (BRL) |
10.00% | 01/01/27 | 1,052,615 | ||||
| 24,870,000 |
Brazil Notas do Tesouro Nacional, Series F (BRL) |
10.00% | 01/01/29 | 5,121,567 | ||||
| 6,174,182 | ||||||||
| Canada – 1.2% | ||||||||
| 1,251,000 |
CPPIB Capital, Inc. (CAD) (b) |
1.95% | 09/30/29 | 866,669 | ||||
| Colombia – 2.0% | ||||||||
| 6,025,900,000 |
Colombian TES (COP) |
9.25% | 05/28/42 | 1,411,921 | ||||
| Dominican Republic – 1.6% | ||||||||
| 359,000 |
Dominican Republic International Bond (USD) (d) |
5.50% | 02/22/29 | 351,820 | ||||
| 25,050,000 |
Dominican Republic International Bond (DOP) (d) |
11.25% | 09/15/35 | 466,583 | ||||
| 340,000 |
Dominican Republic International Bond (USD) (b) |
5.88% | 01/30/60 | 294,933 | ||||
| 1,113,336 | ||||||||
| Ecuador – 1.6% | ||||||||
| 3,169,400 |
Ecuador Government International Bond (USD) (b) (c) |
3.50% | 07/31/35 | 1,142,184 | ||||
| Egypt – 1.9% | ||||||||
| 1,223,000 |
Egypt Government International Bond (USD) (d) |
8.50% | 01/31/47 | 764,302 | ||||
| 928,000 |
Egypt Government International Bond (USD) (b) |
7.90% | 02/21/48 | 562,211 | ||||
| 1,326,513 | ||||||||
| Georgia – 0.3% | ||||||||
| 200,000 |
Georgia Government International Bond (USD) (d) |
2.75% | 04/22/26 | 187,928 | ||||
| Ghana – 0.4% | ||||||||
| 662,000 |
Ghana Government International Bond (USD) (d) (e) |
7.63% | 05/16/29 | 290,322 | ||||
| Hungary – 2.0% | ||||||||
| 243,430,000 |
Hungary Government Bond (HUF) |
2.50% | 10/24/24 | 676,575 | ||||
| 269,970,000 |
Hungary Government Bond (HUF) |
3.00% | 10/27/27 | 709,462 | ||||
| 1,386,037 | ||||||||
| Indonesia – 0.3% | ||||||||
| 3,259,000,000 |
Indonesia Treasury Bond (IDR) |
8.38% | 03/15/34 | 236,736 | ||||
| Principal Value (Local Currency) |
Description | Stated Coupon |
Stated Maturity |
Value (US Dollars) | ||||
| FOREIGN SOVEREIGN BONDS AND NOTES (a) (Continued) | ||||||||
| Iraq – 1.2% | ||||||||
| 909,563 |
Iraq International Bond (USD) (b) |
5.80% | 01/15/28 | $852,775 | ||||
| Ivory Coast – 1.2% | ||||||||
| 919,000 |
Ivory Coast Government International Bond (EUR) (b) |
6.63% | 03/22/48 | 811,624 | ||||
| Kenya – 1.0% | ||||||||
| 873,000 |
Republic of Kenya Government International Bond (USD) (b) |
8.25% | 02/28/48 | 726,633 | ||||
| Malaysia – 2.0% | ||||||||
| 6,499,000 |
Malaysia Government Bond (MYR) |
3.89% | 03/15/27 | 1,427,194 | ||||
| Mexico – 8.6% | ||||||||
| 20,000,000 |
Mexican Bonos (MXN) |
10.00% | 12/05/24 | 1,172,151 | ||||
| 61,423,900 |
Mexican Bonos (MXN) |
5.75% | 03/05/26 | 3,344,234 | ||||
| 28,833,400 |
Mexican Bonos (MXN) |
7.75% | 11/13/42 | 1,494,902 | ||||
| 6,011,287 | ||||||||
| Morocco – 0.5% | ||||||||
| 400,000 |
Morocco Government International Bond (USD) (b) |
2.38% | 12/15/27 | 359,122 | ||||
| New Zealand – 4.8% | ||||||||
| 3,708,000 |
New Zealand Government Bond (NZD) |
0.50% | 05/15/24 | 2,302,397 | ||||
| 2,337,000 |
New Zealand Government Bond (NZD) |
2.75% | 05/15/51 | 1,055,683 | ||||
| 3,358,080 | ||||||||
| Nigeria – 0.7% | ||||||||
| 634,000 |
Nigeria Government International Bond (USD) (d) |
7.63% | 11/28/47 | 504,654 | ||||
| Oman – 2.4% | ||||||||
| 1,590,000 |
Oman Government International Bond (USD) (d) |
7.00% | 01/25/51 | 1,720,444 | ||||
| Peru – 3.3% | ||||||||
| 8,575,000 |
Peruvian Government International Bond (PEN) (b) |
6.90% | 08/12/37 | 2,339,170 | ||||
| Poland – 3.6% | ||||||||
| 12,836,000 |
Republic of Poland Government Bond (PLN) |
1.75% | 04/25/32 | 2,538,812 | ||||
| Qatar – 2.3% | ||||||||
| 1,733,000 |
Qatar Government International Bond (USD) (b) |
4.40% | 04/16/50 | 1,600,859 | ||||
| Rwanda – 0.6% | ||||||||
| 532,000 |
Rwanda International Government Bond (USD) (d) |
5.50% | 08/09/31 | 427,667 | ||||
| Saudi Arabia – 1.1% | ||||||||
| 745,000 |
Saudi Government International Bond (USD) (d) |
4.38% | 04/16/29 | 743,283 | ||||
| South Africa – 2.3% | ||||||||
| 37,211,600 |
Republic of South Africa Government Bond (ZAR) |
9.00% | 01/31/40 | 1,595,059 | ||||
| Turkey – 2.6% | ||||||||
| 1,617,000 |
Turkey Government International Bond (USD) |
9.38% | 01/19/33 | 1,830,525 | ||||
| Ukraine – 0.2% | ||||||||
| 572,000 |
Ukraine Government International Bond (USD) (b) |
7.75% | 09/01/29 | 158,620 | ||||
| United Kingdom – 2.8% | ||||||||
| 1,458,500 |
United Kingdom Gilt (GBP) (b) |
4.25% | 06/07/32 | 1,968,651 | ||||
| Uruguay – 1.0% | ||||||||
| 25,388,985 |
Uruguay Government International Bond (UYU) |
4.38% | 12/15/28 | 680,517 | ||||
| Principal Value (Local Currency) |
Description | Stated Coupon |
Stated Maturity |
Value (US Dollars) | ||||
| FOREIGN SOVEREIGN BONDS AND NOTES (a) (Continued) | ||||||||
| Uzbekistan – 0.7% | ||||||||
| 300,000 |
National Bank of Uzbekistan (USD) (b) |
4.85% | 10/21/25 | $278,480 | ||||
| 260,000 |
Republic of Uzbekistan International Bond (USD) (d) |
3.70% | 11/25/30 | 219,193 | ||||
| 497,673 | ||||||||
|
Total Foreign Sovereign Bonds and Notes |
51,891,333 | |||||||
| (Cost $53,681,044) | ||||||||
| FOREIGN CORPORATE BONDS AND NOTES (a) (f) – 28.1% | ||||||||
| Barbados – 0.5% | ||||||||
| 337,000 |
Sagicor Financial Co., Ltd. (USD) (d) |
5.30% | 05/13/28 | 323,877 | ||||
| Brazil – 3.4% | ||||||||
| 440,000 |
Banco do Brasil S.A. (USD) (b) (g) |
6.25% | (h) | 430,421 | ||||
| 228,000 |
BRF S.A. (USD) (d) |
5.75% | 09/21/50 | 170,577 | ||||
| 375,274 |
Guara Norte Sarl (USD) (d) |
5.20% | 06/15/34 | 342,289 | ||||
| 500,000 |
Itau Unibanco Holding S.A. (USD) (b) (g) |
4.63% | (h) | 440,369 | ||||
| 291,000 |
Minerva Luxembourg S.A. (USD) (d) |
8.88% | 09/13/33 | 308,182 | ||||
| 1,550,000 |
OAS Finance Ltd. (USD) (e) (g) (i) (j) |
8.88% | (h) | 11,625 | ||||
| 460,000 |
OAS Investments GmbH (USD) (e) (i) (j) |
8.25% | 10/19/19 | 3,450 | ||||
| 765,000 |
Petrobras Global Finance BV (USD) |
5.50% | 06/10/51 | 645,634 | ||||
| 2,352,547 | ||||||||
| Chile – 0.6% | ||||||||
| 468,000 |
Empresa Nacional del Petroleo (USD) (d) |
3.45% | 09/16/31 | 394,948 | ||||
| China – 1.3% | ||||||||
| 888,000 |
Huarong Finance II Co., Ltd. (USD) (b) |
5.50% | 01/16/25 | 880,230 | ||||
| Colombia – 1.0% | ||||||||
| 218,000 |
Ecopetrol S.A. (USD) |
8.88% | 01/13/33 | 237,109 | ||||
| 600,000 |
Empresas Publicas de Medellin ESP (USD) (b) |
4.38% | 02/15/31 | 491,100 | ||||
| 728,209 | ||||||||
| Dominican Republic – 0.6% | ||||||||
| 491,000 |
AES Espana BV (USD) (d) |
5.70% | 05/04/28 | 447,625 | ||||
| Ecuador – 0.7% | ||||||||
| 465,770 |
International Airport Finance S.A. (USD) (d) |
12.00% | 03/15/33 | 478,411 | ||||
| Georgia – 0.5% | ||||||||
| 345,000 |
Georgian Railway JSC (USD) (b) |
4.00% | 06/17/28 | 318,444 | ||||
| India – 2.7% | ||||||||
| 160,000,000 |
HDFC Bank Ltd. (INR) (b) |
8.10% | 03/22/25 | 1,914,960 | ||||
| Israel – 1.3% | ||||||||
| 312,000 |
Bank Leumi Le-Israel BM (USD) (b) (d) (g) |
7.13% | 07/18/33 | 307,202 | ||||
| 311,000 |
Energean Israel Finance Ltd. (USD) (b) (d) |
8.50% | 09/30/33 | 298,171 | ||||
| 300,000 |
Teva Pharmaceutical Finance Netherlands III B.V. (USD) |
7.13% | 01/31/25 | 302,849 | ||||
| 908,222 | ||||||||
| Kazakhstan – 1.0% | ||||||||
| 806,000 |
KazMunayGas National Co. JSC (USD) (b) |
5.75% | 04/19/47 | 708,551 | ||||
| Mexico – 3.3% | ||||||||
| 400,000 |
BBVA Bancomer S.A. (USD) (b) (g) |
5.13% | 01/18/33 | 362,716 | ||||
| 237,000 |
Braskem Idesa S.A.P.I. (USD) (d) |
6.99% | 02/20/32 | 138,962 | ||||
| Principal Value (Local Currency) |
Description | Stated Coupon |
Stated Maturity |
Value (US Dollars) | ||||
| FOREIGN CORPORATE BONDS AND NOTES (a) (f) (Continued) | ||||||||
| Mexico (Continued) | ||||||||
| 225,000 |
Cemex SAB de CV (USD) (d) (g) |
9.13% | (h) | $239,906 | ||||
| 22,160,000 |
Petroleos Mexicanos (MXN) (b) |
7.19% | 09/12/24 | 1,247,992 | ||||
| 350,000 |
Sixsigma Networks Mexico SA de CV (USD) (d) |
7.50% | 05/02/25 | 320,331 | ||||
| 2,309,907 | ||||||||
| Nigeria – 2.2% | ||||||||
| 526,000 |
Access Bank PLC (USD) (d) |
6.13% | 09/21/26 | 474,794 | ||||
| 464,000 |
BOI Finance BV (EUR) (d) |
7.50% | 02/16/27 | 472,179 | ||||
| 270,000 |
IHS Netherlands Holdco BV (USD) (d) |
8.00% | 09/18/27 | 241,369 | ||||
| 400,000 |
SEPLAT Energy PLC (USD) (d) |
7.75% | 04/01/26 | 368,800 | ||||
| 1,557,142 | ||||||||
| Oman – 0.9% | ||||||||
| 250,000 |
EDO Sukuk Ltd. (USD) (d) |
5.88% | 09/21/33 | 258,106 | ||||
| 400,000 |
Oryx Funding Ltd. (USD) (d) |
5.80% | 02/03/31 | 402,093 | ||||
| 660,199 | ||||||||
| Peru – 0.5% | ||||||||
| 522,000 |
Petroleos del Peru S.A. (USD) (d) |
5.63% | 06/19/47 | 322,061 | ||||
| Russia – 0.0% | ||||||||
| 500,000 |
Sovcombank Via SovCom Capital DAC (USD) (e) (g) (i) |
7.75% | (h) | 9,540 | ||||
| Singapore – 0.7% | ||||||||
| 520,000 |
Puma International Financing S.A. (USD) (b) |
5.00% | 01/24/26 | 494,858 | ||||
| South Africa – 2.5% | ||||||||
| 530,000 |
Eskom Holdings SOC Ltd. (USD) (b) |
7.13% | 02/11/25 | 530,895 | ||||
| 43,650,000 |
Eskom Holdings SOC Ltd. (ZAR) |
(k) | 12/31/32 | 516,617 | ||||
| 400,000 |
Liquid Telecommunications Financing PLC (USD) (d) |
5.50% | 09/04/26 | 234,490 | ||||
| 300,000 |
Sasol Financing USA LLC (USD) |
6.50% | 09/27/28 | 286,120 | ||||
| 200,000 |
Transnet SOC Ltd. (USD) (d) |
8.25% | 02/06/28 | 201,973 | ||||
| 1,770,095 | ||||||||
| Tanzania – 0.6% | ||||||||
| 452,000 |
HTA Group Ltd. (USD) (d) |
7.00% | 12/18/25 | 445,973 | ||||
| Trinidad And Tobago – 1.0% | ||||||||
| 632,000 |
Heritage Petroleum Co., Ltd. (USD) (d) |
9.00% | 08/12/29 | 665,496 | ||||
| Turkey – 0.5% | ||||||||
| 352,000 |
WE Soda Investments Holdings PLC (USD) (d) |
9.50% | 10/06/28 | 364,250 | ||||
| Ukraine – 1.6% | ||||||||
| 467,000 |
Kernel Holding S.A. (USD) (d) |
6.75% | 10/27/27 | 306,527 | ||||
| 567,000 |
MHP Lux S.A. (USD) (b) |
6.95% | 04/03/26 | 440,559 | ||||
| 453,000 |
NPC Ukrenergo (USD) (d) (e) |
6.88% | 11/09/28 | 127,384 | ||||
| 460,000 |
Ukraine Railways Via Rail Capital Markets PLC (USD) (b) (e) |
8.25% | 07/09/26 | 252,111 | ||||
| 1,126,581 | ||||||||
| Zambia – 0.7% | ||||||||
| 291,000 |
First Quantum Minerals Ltd. (USD) (b) |
7.50% | 04/01/25 | 278,291 | ||||
| Principal Value (Local Currency) |
Description | Stated Coupon |
Stated Maturity |
Value (US Dollars) | ||||
| FOREIGN CORPORATE BONDS AND NOTES (a) (f) (Continued) | ||||||||
| Zambia (Continued) | ||||||||
| 285,000 |
First Quantum Minerals Ltd. (USD) (d) |
8.63% | 06/01/31 | $241,894 | ||||
| 520,185 | ||||||||
|
Total Foreign Corporate Bonds and Notes |
19,702,311 | |||||||
| (Cost $23,754,554) | ||||||||
| Principal Value |
Description | Stated Coupon |
Stated Maturity |
Value | ||||
| U.S. GOVERNMENT BONDS AND NOTES (a) – 18.3% | ||||||||
| $2,038,500 |
United States Treasury Bond |
2.38% | 05/15/51 | 1,455,298 | ||||
| 2,783,500 |
United States Treasury Note |
2.75% | 07/31/27 | 2,672,323 | ||||
| 9,432,200 |
United States Treasury Note |
2.38% | 05/15/29 | 8,744,313 | ||||
|
Total U.S. Government Bonds and Notes |
12,871,934 | |||||||
| (Cost $14,086,499) | ||||||||
|
Total Investments – 120.3% |
84,465,578 | ||
| (Cost $91,522,097) | |||
|
Outstanding Loan – (23.6)% |
(16,600,000) | ||
|
Net Other Assets and Liabilities – 3.3% |
2,342,941 | ||
|
Net Assets – 100.0% |
$70,208,519 |
| Forward Foreign Currency Contracts | ||||||||||||||
| Settlement Date |
Counterparty | Amount Purchased |
Amount Sold |
Purchase Value as of 12/31/2023 |
Sale Value as of 12/31/2023 |
Unrealized Appreciation/ (Depreciation) | ||||||||
| 01/19/24 | BAR | CAD | 587,000 | USD | 432,357 | $ 443,133 | $ 432,357 | $ 10,776 | ||||||
| 01/19/24 | CIT | JPY | 454,387,794 | USD | 3,105,874 | 3,233,236 | 3,105,874 | 127,362 | ||||||
| 01/19/24 | GS | USD | 4,427,624 | AUD | 6,875,000 | 4,427,624 | 4,688,335 | (260,711) | ||||||
| 02/08/24 | CIT | USD | 1,702,443 | BRL | 8,460,000 | 1,702,443 | 1,736,160 | (33,717) | ||||||
| 01/19/24 | CIT | USD | 369,509 | GBP | 301,347 | 369,509 | 384,158 | (14,649) | ||||||
| 01/19/24 | BAR | USD | 488,514 | GBP | 397,000 | 488,514 | 506,097 | (17,583) | ||||||
| 01/19/24 | DB | USD | 1,122,711 | NZD | 1,865,000 | 1,122,711 | 1,179,065 | (56,354) | ||||||
| 01/19/24 | DB | USD | 1,779,679 | ZAR | 33,888,132 | 1,779,679 | 1,849,110 | (69,431) | ||||||
|
Net Unrealized Appreciation / (Depreciation) |
$(314,307) | |||||||||||||
| (a) | All of these securities are available to serve as collateral for the outstanding loan. |
| (b) | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933, as amended (the “1933 Act”). |
| (c) | Step-up security. A security where the coupon increases or steps up at a predetermined date. Interest rate shown reflects the rate in effect at December 31, 2023. |
| (d) | This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A of 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 abrdn Inc., the Fund’s sub-advisor (“abrdn” or 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 December 31, 2023, securities noted as such amounted to $15,046,851 or 21.4% of net assets. |
| (e) | This issuer is in default and interest is not being accrued by the Fund. |
| (f) | Portfolio securities are included in a country based upon their underlying credit exposure as determined by abrdn. |
| (g) | Fixed-to-floating or fixed-to-variable rate security. The interest rate shown reflects the fixed rate in effect at December 31, 2023. At a predetermined date, the fixed rate will change to a floating rate or a variable rate. |
| (h) | Perpetual maturity. |
| (i) | This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under Rule 144A of the 1933 Act, and may be resold in transactions exempt from registration, normally to qualified institutional buyers (see Note 2C - Restricted Securities in the Notes to Financial Statements). |
| (j) | This issuer has filed for bankruptcy protection in a São Paulo state court. |
| (k) | Zero coupon bond. |
| Abbreviations throughout the Portfolio of Investments: | |
| AUD | – Australian Dollar |
| BAR | – Barclays Bank |
| BRL | – Brazilian Real |
| CAD | – Canadian Dollar |
| CIT | – Citibank, NA |
| COP | – Colombian Peso |
| DB | – Deutsche Bank |
| DOP | – Dominican Republic Peso |
| EUR | – Euro |
| GBP | – British Pound Sterling |
| GS | – Goldman Sachs |
| HUF | – Hungarian Forint |
| IDR | – Indonesian Rupiah |
| INR | – Indian Rupee |
| JPY | – Japanese Yen |
| MXN | – Mexican Peso |
| MYR | – Malaysian Ringgit |
| NZD | – New Zealand Dollar |
| PEN | – Peruvian Nuevo Sol |
| PLN | – Polish Zloty |
| USD | – United States Dollar |
| UYU | – Uruguayan Peso |
| ZAR | – South African Rand |
| Currency
Exposure Diversification |
%
of Total Investments† |
| USD | 61.1% |
| MXN | 8.6 |
| BRL | 5.3 |
| JPY | 3.8 |
| PLN | 3.0 |
| PEN | 2.8 |
| NZD | 2.6 |
| INR | 2.3 |
| MYR | 1.7 |
| COP | 1.7 |
| HUF | 1.6 |
| CAD | 1.6 |
| EUR | 1.5 |
| GBP | 1.3 |
| UYU | 0.8 |
| DOP | 0.5 |
| ZAR | 0.3 |
| IDR | 0.3 |
| AUD | -0.8 |
| Total | 100.0% |
| † | The weightings include the impact of currency forwards. |
| ASSETS TABLE | ||||
| Total Value at 12/31/2023 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs | |
|
Foreign Sovereign Bonds and Notes* |
$ 51,891,333 | $ — | $ 51,891,333 | $ — |
|
Foreign Corporate Bonds and Notes* |
19,702,311 | — | 19,702,311 | — |
|
U.S. Government Bonds and Notes |
12,871,934 | — | 12,871,934 | — |
|
Total Investments |
84,465,578 | — | 84,465,578 | — |
|
Forward Foreign Currency Contracts |
138,138 | — | 138,138 | — |
|
Total |
$ 84,603,716 | $— | $ 84,603,716 | $— |
| LIABILITIES TABLE | ||||
| Total Value at 12/31/2023 |
Level
1 Quoted Prices |
Level
2 Significant Observable Inputs |
Level
3 Significant Unobservable Inputs | |
|
Forward Foreign Currency Contracts |
$ (452,445) | $ — | $ (452,445) | $ — |
| * | See Portfolio of Investments for country breakout. |
| ASSETS: | |
|
Investments, at value |
$ 84,465,578 |
|
Cash |
763,273 |
|
Foreign currency |
2,386 |
|
Restricted Cash |
210,000 |
|
Unrealized appreciation on forward foreign currency contracts |
138,138 |
| Receivables: | |
|
Interest |
1,850,424 |
|
Reclaims |
202,913 |
|
Prepaid expenses |
540 |
|
Total Assets |
87,633,252 |
| LIABILITIES: | |
|
Outstanding loan |
16,600,000 |
|
Unrealized depreciation on forward foreign currency contracts |
452,445 |
|
Due to broker |
80,000 |
| Payables: | |
|
Interest and fees on loan |
83,583 |
|
Investment advisory fees |
72,503 |
|
Audit and tax fees |
63,190 |
|
Legal fees |
19,606 |
|
Shareholder reporting fees |
18,163 |
|
Custodian fees |
16,761 |
|
Administrative fees |
12,266 |
|
Deferred foreign capital gains tax |
2,572 |
|
Transfer agent fees |
1,519 |
|
Financial reporting fees |
771 |
|
Trustees’ fees and expenses |
68 |
|
Other liabilities |
1,286 |
|
Total Liabilities |
17,424,733 |
|
NET ASSETS |
$70,208,519 |
| NET ASSETS consist of: | |
|
Paid-in capital |
$ 107,483,185 |
|
Par value |
101,432 |
|
Accumulated distributable earnings (loss) |
(37,376,098) |
|
NET ASSETS |
$70,208,519 |
|
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share) |
$6.92 |
|
Number of |
|
|
Investments, at cost |
$91,522,097 |
|
Foreign currency, at cost (proceeds) |
$2,344 |
| INVESTMENT INCOME: | ||
|
Interest |
$ 5,927,503 | |
|
Foreign withholding tax |
(10,287) | |
|
Total investment income |
5,917,216 | |
| EXPENSES: | ||
|
Interest and fees on loan |
1,128,908 | |
|
Investment advisory fees |
868,449 | |
|
Legal fees |
81,006 | |
|
Audit and tax fees |
71,302 | |
|
Shareholder reporting fees |
55,377 | |
|
Administrative fees |
50,324 | |
|
Listing expense |
23,756 | |
|
Custodian fees |
22,902 | |
|
Transfer agent fees |
20,576 | |
|
Trustees’ fees and expenses |
20,160 | |
|
Financial reporting fees |
9,250 | |
|
Other |
17,631 | |
|
Total expenses |
2,369,641 | |
|
NET INVESTMENT INCOME (LOSS) |
3,547,575 | |
| NET REALIZED AND UNREALIZED GAIN (LOSS): | ||
| Net realized gain (loss) on: | ||
|
Investments |
(5,305,072) | |
|
Forward foreign currency contracts |
(849,870) | |
|
Foreign currency transactions |
3,107,834 | |
|
Foreign capital gains tax |
(23,023) | |
|
Net realized gain (loss) |
(3,070,131) | |
| Net change in unrealized appreciation (depreciation) on: | ||
|
Investments |
10,983,614 | |
|
Forward foreign currency contracts |
331,031 | |
|
Foreign currency translation |
(2,680,673) | |
|
Deferred foreign capital gains tax |
9,815 | |
|
Net change in unrealized appreciation (depreciation) |
8,643,787 | |
|
NET REALIZED AND UNREALIZED GAIN (LOSS) |
5,573,656 | |
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ 9,121,231 | |
| Year Ended 12/31/2023 |
Year Ended 12/31/2022 | ||
| OPERATIONS: | |||
|
Net investment income (loss) |
$ 3,547,575 | $ 3,378,717 | |
|
Net realized gain (loss) |
(3,070,131) | (16,810,908) | |
|
Net change in unrealized appreciation (depreciation) |
8,643,787 | (9,625,220) | |
|
Net increase (decrease) in net assets resulting from operations |
9,121,231 | (23,057,411) | |
| DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||
|
Investment operations |
(3,293,675) | — | |
|
Return of capital |
(3,400,868) | (6,947,995) | |
|
Total distributions to shareholders |
(6,694,543) | (6,947,995) | |
| CAPITAL TRANSACTIONS: | |||
|
Proceeds from Common Shares reinvested |
— | 15,965 | |
|
Net increase (decrease) in net assets resulting from capital transactions |
— | 15,965 | |
|
Total increase (decrease) in net assets |
2,426,688 | (29,989,441) | |
| NET ASSETS: | |||
|
Beginning of period |
67,781,831 | 97,771,272 | |
|
End of period |
$ 70,208,519 | $ 67,781,831 | |
| CAPITAL TRANSACTIONS were as follows: | |||
|
Common Shares at beginning of period |
10,143,247 | 10,141,521 | |
|
Common Shares issued as reinvestment under the Dividend Reinvestment Plan |
— | 1,726 | |
|
Common Shares at end of period |
10,143,247 | 10,143,247 |
| Cash flows from operating activities: | ||
|
Net increase (decrease) in net assets resulting from operations |
$9,121,231 | |
| Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities: | ||
|
Purchases of investments |
(26,457,228) | |
|
Sales, maturities and paydown of investments |
37,940,337 | |
|
Net amortization/accretion of premiums/discounts on investments |
(657,683) | |
|
Net realized gain/loss on investments |
5,305,072 | |
|
Net change in unrealized appreciation/depreciation on investments |
(10,983,614) | |
|
Net change in unrealized appreciation/depreciation on forward foreign currency contracts |
(331,031) | |
| Changes in assets and liabilities: | ||
|
Increase in interest receivable |
(388,288) | |
|
Decrease in reclaims receivable |
22,112 | |
|
Decrease in due from broker |
370,000 | |
|
Decrease in prepaid expenses |
12,590 | |
|
Decrease in interest and fees payable on loan |
(31,675) | |
|
Decrease in due to broker |
(89,295) | |
|
Decrease in investment advisory fees payable |
(10,869) | |
|
Decrease in audit and tax fees payable |
(5,888) | |
|
Increase in legal fees payable |
19,606 | |
|
Decrease in shareholder reporting fees payable |
(609) | |
|
Increase in administrative fees payable |
3,082 | |
|
Increase in custodian fees payable |
10,307 | |
|
Decrease in transfer agent fees payable |
(1,589) | |
|
Increase in trustees’ fees and expenses payable |
55 | |
|
Decrease in deferred foreign capital gains tax |
(9,815) | |
|
Decrease in other liabilities payable |
(916) | |
|
Cash provided by operating activities |
$13,835,892 | |
| Cash flows from financing activities: | ||
|
Distributions to Common Shareholders from investment operations |
(3,293,675) | |
|
Distributions to Common Shareholders from return of capital |
(3,400,868) | |
|
Repayment of borrowing |
(13,350,835) | |
|
Effect of exchange rate changes on Euro Loans (a) |
(20,358) | |
|
Cash used in financing activities |
(20,065,736) | |
|
Decrease in cash and foreign currency (b) |
(6,229,844) | |
|
Cash and foreign currency at beginning of period |
7,205,503 | |
|
Cash, foreign currency, and restricted cash at end of period |
$975,659 | |
| Supplemental disclosure of cash flow information: | ||
|
Cash paid during the period for interest and fees |
$1,160,583 |
| (a) | This amount is a component of net change in unrealized appreciation (depreciation) on foreign currency translation as shown on the Statement of Operations. |
| (b) | Includes net change in unrealized appreciation (depreciation) on foreign currency of $(2,701,031), which does not include the effect of exchange rate changes on Euro borrowings. |
| Year Ended December 31, | |||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | |||||
|
Net asset value, beginning of period |
$ 6.68 | $ 9.64 | $ 11.37 | $ 11.93 | $ 11.07 | ||||
| Income from investment operations: | |||||||||
|
Net investment income (loss) |
0.35 (a) | 0.33 | 0.44 | 0.45 | 0.65 | ||||
|
Net realized and unrealized gain (loss) |
0.55 | (2.60) | (1.27) (b) | (0.06) | 1.09 | ||||
|
Total from investment operations |
0.90 | (2.27) | (0.83) | 0.39 | 1.74 | ||||
| Distributions paid to shareholders from: | |||||||||
|
Net investment income |
(0.32) | — | (0.30) | (0.42) | (0.39) | ||||
|
Return of capital |
(0.34) | (0.69) | (0.65) | (0.54) | (0.49) | ||||
|
Total distributions paid to Common Shareholders |
(0.66) | (0.69) | (0.95) | (0.96) | (0.88) | ||||
|
Common Share repurchases |
— | — | — | 0.01 | 0.00 (c) | ||||
|
Tender offer purchases |
— | — | 0.05 | — | — | ||||
|
Net asset value, end of period |
$ | $6.68 | $9.64 | $11.37 | $11.93 | ||||
|
Market value, end of period |
$ | $6.00 | $9.62 | $10.55 | $11.19 | ||||
|
Total return based on net asset value (d) |
15.69% | (23.23)% | (6.96)% (b) | 4.84% | 17.09% | ||||
|
Total return based on market value (d) |
17.08% | (30.91)% | 0.07% | 3.71% | 29.74% | ||||
| Ratios to average net assets/supplemental data: | |||||||||
|
Net assets, end of period (in 000’s) |
$ 70,209 | $ 67,782 | $ 97,771 | $ 144,094 | $ 152,154 | ||||
|
Ratio of total expenses to average net assets |
3.49% | 2.93% | 2.29% | 2.53% | 2.88% | ||||
|
Ratio of total expenses to average net assets excluding interest expense |
1.83% | 1.93% | 1.89% | 2.00% | 1.77% | ||||
|
Ratio of net investment income (loss) to average net assets |
5.23% | 4.57% | 4.53% | 4.13% | 5.60% | ||||
|
Portfolio turnover rate |
28% | 47% | 44% | 39% | 42% | ||||
| Indebtedness: | |||||||||
|
Total loan outstanding (in 000’s) |
$ 16,600 | $ 29,971 | $ 42,184 | $ 53,514 | $ 60,572 | ||||
|
Asset coverage per $1,000 of indebtedness (e) |
$ 5,229 | $ 3,262 | $ 3,318 | $ 3,693 | $ 3,512 | ||||
| (a) | Based on average shares outstanding. |
| (b) | The Fund received a reimbursement from the sub-advisor in the amount of $4,120 in connection with a trade error, which represents less than $0.01 per share. Since the sub-advisor reimbursed the Fund, there was no effect on the total return. |
| (c) | Amount represents less than $0.01. |
| (d) | Total return is based on the combination of reinvested dividend, capital gain and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan, and changes in net asset value per share for net asset value returns and changes in Common Share Price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year. Past performance is not indicative of future results. |
| (e) | Calculated by subtracting the Fund’s total liabilities (not including the loan outstanding) from the Fund’s total assets, and dividing by the outstanding loan balance in 000’s. |
| 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. |
| 1) | the credit conditions in the relevant market and changes thereto; |
| 2) | the liquidity conditions in the relevant market and changes thereto; |
| 3) | the interest rate conditions in the relevant market and changes thereto (such as significant changes in interest rates); |
| 4) | issuer-specific conditions (such as significant credit deterioration); and |
| 5) | any other market-based data the Advisor’s Pricing Committee considers relevant. In this regard, the Advisor’s Pricing Committee may use last-obtained market-based data to assist it when valuing portfolio securities using amortized cost. |
| 1) | the most recent price provided by a pricing service; |
| 2) | available market prices for the fixed-income security; |
| 3) | the fundamental business data relating to the issuer, or economic data relating to the country of issue; |
| 4) | an evaluation of the forces which influence the market in which these securities are purchased and sold; |
| 5) | the type, size and cost of the security; |
| 6) | the financial statements of the issuer, or the financial condition of the country of issue; |
| 7) | the credit quality and cash flow of the issuer, or country of issue, based on abrdn Inc.’s (“abrdn” or the “Sub-Advisor”) or external analysis; |
| 8) | the information as to any transactions in or offers for the security; |
| 9) | the price and extent of public trading in similar securities (or equity securities) of the issuer, or comparable companies; |
| 10) | the coupon payments; |
| 11) | the quality, value and salability of collateral, if any, securing the security; |
| 12) | 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); |
| 13) | 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); |
| 14) | 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 |
| 15) | other relevant factors. |
| • | 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. |
| • | 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. |
| • | 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. |
| Security | Acquisition Date |
Principal Value |
Current Price | Carrying Cost |
Value | %
of Net Assets | ||
| OAS Finance Ltd., 8.88% | 4/18/2013 | $1,550,000 | $0.75 | $1,550,000 | $11,625 | 0.02% | ||
| OAS Investments GmbH, 8.25%, 10/19/19 | 10/12/2012 | 460,000 | 0.75 | 460,000 | 3,450 | 0.01 | ||
| Sovcombank Via SovCom Capital DAC, 7.75% | 2/19/2020 | 500,000 | 1.91 | 511,643 | 9,540 | 0.01 | ||
| $2,521,643 | $24,615 | 0.04% |
| Gross
Amounts not Offset in the Statement of Assets and Liabilities |
|||||||||||
| Gross Amounts of Recognized Assets |
Gross
Amounts Offset in the Statement of Assets and Liabilities |
Net
Amounts of Assets Presented in the Statement of Assets and Liabilities |
Financial Instruments |
Collateral Amounts Received |
Net Amount | ||||||
| Forward
Foreign Currency Contracts* |
$ 138,138 | $ — | $ 138,138 | $ (59,142) | $ — | $ 78,966 | |||||
| Gross
Amounts not Offset in the Statement of Assets and Liabilities |
|||||||||||
| Gross Amounts of Recognized Liabilities |
Gross
Amounts Offset in the Statement of Assets and Liabilities |
Net
Amounts of Liabilities Presented in the Statement of Assets and Liabilities |
Financial Instruments |
Collateral Amounts Pledged |
Net Amount | ||||||
| Forward Foreign Currency Contracts* | $ (452,445) | $ — | $ (452,445) | $ 59,142 | $ — | $ (393,303) | |||||
| Distributions paid from: | 2023 | 2022 |
|
Ordinary income |
$3,293,675 | $— |
|
Capital gains |
— | — |
|
Return of capital |
3,400,868 | 6,947,995 |
|
Undistributed ordinary income |
$— |
|
Undistributed capital gains |
— |
|
Total undistributed earnings |
— |
|
Accumulated capital and other losses |
(27,834,759) |
|
Net unrealized appreciation (depreciation) |
(9,415,168) |
|
Total accumulated earnings (losses) |
(37,249,927) |
|
Other |
(126,171) |
|
Paid-in capital |
107,584,617 |
|
Total net assets |
$70,208,519 |
| Tax Cost | Gross Unrealized Appreciation |
Gross Unrealized (Depreciation) |
Net
Unrealized Appreciation (Depreciation) | |||
| $93,576,632 | $2,310,148 | $(11,735,509) | $(9,425,361) |
| Asset Derivatives | Liability Derivatives | |||||||||
| Derivative Instrument |
Risk Exposure |
Statement
of Assets and Liabilities Location |
Value | Statement
of Assets and Liabilities Location |
Value | |||||
| Forward
foreign currency contracts |
Currency Risk | Unrealized
appreciation on forward foreign currency contracts |
$ 138,138 | Unrealized
depreciation on forward foreign currency contracts |
$ 452,445 | |||||
| Statement of Operations Location | |
| Currency Risk Exposure | |
| Net realized gain (loss) on forward foreign currency contracts | $(849,870) |
| Net change in unrealized appreciation (depreciation) on forward foreign currency contracts | 331,031 |
| (1) | If Common Shares are trading at or above net asset value (“NAV”) at the time of valuation, the Fund will issue new shares at a price equal to the greater of (i) NAV per Common Share on that date or (ii) 95% of the market price on that date. |
| (2) | If Common Shares are trading below NAV at the time of valuation, the Plan Agent will receive the dividend or distribution in cash and will purchase Common Shares in the open market, on the NYSE or elsewhere, for the participants’ accounts. It is possible that the market price for the Common Shares may increase before the Plan Agent has completed its purchases. Therefore, the average purchase price per share paid by the Plan Agent may exceed the market price at the time of valuation, resulting in the purchase of fewer shares than if the dividend or distribution had been paid in Common Shares issued by the Fund. The Plan Agent will use all dividends and distributions received in cash to purchase Common Shares in the open market within 30 days of the valuation date except where temporary curtailment or suspension of purchases is necessary to comply with federal securities laws. Interest will not be paid on any uninvested cash payments. |
| • | May invest up to 40% of its Managed Assets in corporate debt obligations. |
| o | Corporate debt bonds generally are used by corporations to borrow money from investors. The issuer pays the investor a fixed or variable rate of interest and normally must repay the amount borrowed on or before maturity. Certain corporate bonds are “perpetual” in that they have no maturity date. The Fund may invest in non-U.S. corporate bonds which involve unique risks compared to investing in the securities of U.S. issuers. |
| • | May invest up to 60% of its Managed Assets in securities rated below “Baa3” by Moody’s Investment Service, inc. (“Moody’s”) below “BBB-” by Standard & Poor’s Corporation, a division of The McGraw-Hill Companies (“S&P”), or comparably rated by another nationally recognized statistical rating organization or, if unrated, determined by the Sub-Advisor to be of comparable credit quality. |
| o | The Fund may invest in high yield securities of any rating. However, the Fund will not invest more than 15% of its Managed Assets in securities rated below “B-” by Moody’s and/or S& P. |
| • | May invest up to 15% of its Managed Assets in asset-backed securities. |
| o | Asset-backed securities are securities that represent a participation in, or are secured by and payable from, a stream of payments generated by particular assets, most often a pool or pools of similar assets (e.g., trade receivables). The credit quality of these securities depends primarily upon the quality of the underlying assets and the level of credit support and/or enhancement provided. The underlying assets (e.g., loans) are subject to prepayments which shorten the securities’ weighted average maturity and may lower their return. Losses or delays in payment may result if the credit support or enhancement is exhausted because the required payments of principal and interest on the underlying assets |
| are not made. The value of these securities may also change because of changes in the market’s perception of the creditworthiness of the servicing agent for the pool, the originator of the pool or the financial institution or fund providing the credit support or enhancement. |
| • | May invest up to 35% of its Managed Assets in credit linked notes (“Credit Linked Notes”), provided such securities are issued by an institution with at least an “A” credit rating by Moody’s and/or S&P. |
| o | Credit Linked Notes are structured securities typically issued by banks whose principal and interest payments are contingent on the performance of a specified borrower company or companies (the “Reference Issuer”). Credit Linked Notes are created by embedding a credit default swap in a funded asset to form an investment whose credit risk and cash flow characteristics resemble those of a bond or loan. These notes pay an enhanced coupon to the investor for taking on the added credit risk of the Reference Issuer. |
| • | May invest up to 10% of its Managed Assets in securities that, at the time of investment, are illiquid (i.e., securities that cannot be disposed of within seven days in the ordinary course of business at approximately the value at which the Fund has valued the securities). The Fund may also invest, without limit, in securities that are unregistered (but are eligible for purchase and sale by certain qualified institutional buyers) or are held by control persons of the issuer and securities that are subject to contractual restrictions on their resale (“restricted securities”). However, restricted securities determined by the Sub-Advisor, under the supervision of the Board of Trustees, to be illiquid are subject to the limitations set forth above. |
| • | May invest up to 5% of its Managed Assets in non-deliverable forward foreign exchange contracts for purposes of hedging. |
| • | May invest up to 10% of its Managed Assets in forward foreign exchange contracts (both deliverable and non-deliverable). |
| • | Interest Rate Risk. Interest rate risk is the risk that securities will decline in value because of changes in market interest rates. For fixed rate securities, when market interest rates rise, the market value of such securities generally will fall. Investments in fixed rate securities with long-term maturities may experience significant price declines if long-term interest rates increase. During periods of rising interest rates, the average life of certain types of securities may be extended because of slower than expected prepayments. This may lock in a below-market yield, increase the security’s duration and further reduce the value of the security. Fixed rate securities with longer durations tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. |
| • | Issuer Risk. The value of fixed income securities may decline for a number of reasons which directly relate to the issuer, such as management performance, leverage and reduced demand for the issuer’s goods and services. |
| • | Prepayment Risk. Prepayment risk is the risk that the issuer of a debt security will repay principal prior to the scheduled maturity date. During periods of declining interest rates, the issuer of a security may exercise its option to prepay principal earlier than scheduled, forcing the Fund to reinvest the proceeds from such prepayment in lower yielding securities, which may result in a decline in the Fund’s income and distributions to common shareholders. |
| • | Reinvestment Risk. Reinvestment risk is the risk that income from the Fund’s portfolio will decline if the Fund invests the proceeds from matured, traded or called securities at market interest rates that are below the Fund portfolio’s current earnings rate. Similarly, the yield-to-maturity of a security assumes that all coupons are reinvested at the prevailing rate. If rates fall, the actual yield realized on the security may be lower as the security’s coupons are reinvested at lower yields. |
| NOT FDIC INSURED | NOT BANK GUARANTEED | MAY LOSE VALUE |
|
Assumed Portfolio Total Return (Net of Expenses) |
-10% | -5% | 0% | 5% | 10% |
|
Common Share Total Return |
- |
- |
- |
| Name, Year of Birth and Position with the Fund | Term of Office and Year First Elected or Appointed(1) | Principal
Occupations During Past 5 Years |
Number of Portfolios in the First Trust Fund Complex Overseen by Trustee | Other Trusteeships or Directorships Held by Trustee During Past 5 Years |
| INDEPENDENT TRUSTEES | ||||
| Richard
E. Erickson, Trustee (1951) |
• Three Year Term• Since Fund Inception | Retired; Physician, Edward-Elmhurst Medical Group (2021 to September 2023); Physician and Officer, Wheaton Orthopedics (1990 to 2021) | 257 | None |
| Thomas
R. Kadlec, Trustee (1957) |
• Three Year Term• Since Fund Inception | Retired; President, ADM Investor Services, Inc. (Futures Commission Merchant) (2010 to July 2022) | 257 | Director, National Futures Association and ADMIS Singapore Ltd.; Formerly, Director of ADM Investor Services, Inc., ADM Investor Services International, ADMIS Hong Kong Ltd., and Futures Industry Association |
| Denise
M. Keefe, Trustee (1964) |
• Three Year Term• Since 2021 | Executive Vice President, Advocate Aurora Health and President, Advocate Aurora Continuing Health Division (Integrated Healthcare System) | 257 | Director and Board Chair of Advocate Home Health Services, Advocate Home Care Products and Advocate Hospice; Director and Board Chair of Aurora At Home (since 2018); Director of Advocate Physician Partners Accountable Care Organization; Director of RML Long Term Acute Care Hospitals; Director of Senior Helpers (since 2021); and Director of MobileHelp (since 2022) |
| Robert
F. Keith, Trustee (1956) |
• Three Year Term• Since Fund Inception | President, Hibs Enterprises (Financial and Management Consulting) | 257 | Formerly, Director of Trust Company of Illinois |
| Niel
B. Nielson, Trustee (1954) |
• Three Year Term• Since Fund Inception | Senior Advisor (2018 to Present), Managing Director and Chief Operating Officer (2015 to 2018), Pelita Harapan Educational Foundation (Educational Products and Services) | 257 | None |
| (1) | Currently, Richard E. Erickson and Thomas R. Kadlec, as Class II Trustees, are serving as trustees until the Fund’s 2024 annual meeting of shareholders. James A. Bowen, Niel B. Nielson, and Bronwyn Wright as Class III Trustees, are serving as trustees until the Fund’s 2025 annual meeting of shareholders. Denise M. Keefe and Robert F. Keith, as Class I Trustees, are serving as trustees until the Fund’s 2026 annual meeting of shareholders. |
| Name, Year of Birth and Position with the Fund | Term of Office and Year First Elected or Appointed(1) | Principal
Occupations During Past 5 Years |
Number of Portfolios in the First Trust Fund Complex Overseen by Trustee | Other Trusteeships or Directorships Held by Trustee During Past 5 Years |
| INDEPENDENT TRUSTEES | ||||
| Bronwyn
Wright, Trustee (1971) |
• Three Year Term• Since 2023 | Independent Director to a number of Irish collective investment funds (2009 to Present); Various roles at international affiliates of Citibank (1994 to 2009), including Managing Director, Citibank Europe plc and Head of Securities and Fund Services, Citi Ireland (2007 to 2009) | 233 | None |
| INTERESTED TRUSTEE | ||||
| James
A. Bowen(2), Trustee and Chairman of the Board (1955) |
• Three Year Term• Since Fund Inception | Chief Executive Officer, First Trust Advisors L.P. and First Trust Portfolios L.P.; Chairman of the Board of Directors, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) | 257 | None |
| Name and Year of Birth | Position and Offices with Fund | Term of Office and Length of Service | Principal
Occupations During Past 5 Years |
| OFFICERS(3) | |||
| James
M. Dykas (1966) |
President and Chief Executive Officer | • Indefinite
Term • Since 2016 |
Managing Director and Chief Financial Officer, First Trust Advisors L.P. and First Trust Portfolios L.P.; Chief Financial Officer, BondWave LLC (Software Development Company) and Stonebridge Advisors LLC (Investment Advisor) |
| Derek
D. Maltbie (1972) |
Treasurer, Chief Financial Officer and Chief Accounting Officer | • Indefinite
Term • Since 2023 |
Senior Vice President, First Trust Advisors L.P. and First Trust Portfolios L.P., July 2021 to Present. Previously, Vice President, First Trust Advisors L.P. and First Trust Portfolios L.P., 2014 to 2021. |
| W.
Scott Jardine (1960) |
Secretary and Chief Legal Officer | • Indefinite
Term • Since Fund Inception |
General Counsel, First Trust Advisors L.P. and First Trust Portfolios L.P.; Secretary and General Counsel, BondWave LLC; Secretary, Stonebridge Advisors LLC |
| Daniel
J. Lindquist (1970) |
Vice President | • Indefinite
Term • Since December 2005 |
Managing Director, First Trust Advisors L.P. and First Trust Portfolios L.P. |
| Kristi
A. Maher (1966) |
Chief Compliance Officer and Assistant Secretary | •
Indefinite Term • Chief Compliance Officer Since January 2011• Assistant Secretary Since Fund Inception |
Deputy General Counsel, First Trust Advisors L.P. and First Trust Portfolios L.P. |
| (2) | Mr. Bowen is deemed an “interested person” of the Fund due to his position as CEO of First Trust Advisors L.P., investment advisor of the Fund. |
| (3) | The term “officer” means the president, vice president, secretary, treasurer, controller or any other officer who performs a policy making function. |
| • | Information we receive from you and your broker-dealer, investment professional or financial representative through interviews, applications, agreements or other forms; |
| • | Information about your transactions with us, our affiliates or others; |
| • | Information we receive from your inquiries by mail, e-mail or telephone; and |
| • | Information we collect on our website through the use of “cookies.” For example, we may identify the pages on our website that your browser requests or visits. |
| • | In order to provide you with products and services and to effect transactions that you request or authorize, we may disclose your personal information as described above to unaffiliated financial service providers and other companies that perform administrative or other services on our behalf, such as transfer agents, custodians and trustees, or that assist us in the distribution of investor materials such as trustees, banks, financial representatives, proxy services, solicitors and printers. |
| • | We may release information we have about you if you direct us to do so, if we are compelled by law to do so, or in other legally limited circumstances (for example to protect your account from fraud). |
(b) Not applicable.
Item 2. Code of Ethics.
| (a) | The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. |
| (c) | There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. |
| (d) | The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions. |
| (e) | Not applicable. |
| (f) | A copy of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller is filed as an exhibit pursuant to Item 13(a)(1). |
Item 3. Audit Committee Financial Expert.
As of the end of the period covered by the report, the registrant’s board of trustees has determined that Thomas R. Kadlec, Robert F. Keith and Bronwyn Wright are qualified to serve as audit committee financial experts serving on its audit committee and that each of them is “independent,” as defined by Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a) Audit Fees (Registrant) — The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements were $55,000 for 2022 and $55,000 for 2023.
(b) Audit-Related Fees (Registrant) — The aggregate fees billed in each of the last two fiscal years, for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were $0 for 2022 and $0 for 2023.
Audit-Related Fees (Investment Advisor) — The aggregate fees billed in each of the last two fiscal years of the registrant for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were $0 for 2022 and $0 for 2023.
(c) Tax Fees (Registrant) — The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning to the registrant were 16,250 for 2022 and $21,000 for 2023. These fees were for tax consultation and/or tax return preparation.
Tax Fees (Investment Advisor) — The aggregate fees billed in each of the last two fiscal years of the registrant for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning to the registrant’s advisor were $0 for 2022 and $0 for 2023.
(d) All Other Fees (Registrant) — The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant to the registrant, other than the services reported in paragraphs (a) through (c) of this Item were $0 for 2022 and $0 for 2023.
All Other Fees (Investment Advisor) — The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant to the registrant’s investment advisor, other than services reported in paragraphs (a) through (c) of this Item were $0 for 2022 and $0 for 2023.
| (e)(1) | Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. |
Pursuant to its charter and its Audit and Non-Audit Services Pre-Approval Policy, the Audit Committee (the “Committee”) is responsible for the pre-approval of all audit services and permitted non-audit services (including the fees and terms thereof) to be performed for the registrant by its independent auditors. The Chairman of the Committee is authorized to give such pre-approvals on behalf of the Committee up to $25,000 and report any such pre-approval to the full Committee.
The Committee is also responsible for the pre-approval of the independent auditor’s engagements for non-audit services with the registrant’s advisor (not including a sub-advisor whose role is primarily portfolio management and is sub-contracted or overseen by another investment advisor) and any entity controlling, controlled by or under common control with the investment advisor that provides ongoing services to the registrant, if the engagement relates directly to the operations and financial reporting of the registrant, subject to the de minimis exceptions for non-audit services described in Rule 2-01 of Regulation S-X. If the independent auditor has provided non-audit services to the registrant’s advisor (other than any sub-advisor whose role is primarily portfolio management and is sub-contracted with or overseen by another investment advisor) and any entity controlling, controlled by or under common control with the investment advisor that provides ongoing services to the registrant that were not pre-approved pursuant to its policies, the Committee will consider whether the provision of such non-audit services is compatible with the auditor’s independence.
| (e)(2) | The percentage of services described in each of paragraphs (b) through (d) for the registrant and the registrant’s investment advisor of this Item that were approved by the audit committee pursuant to the pre-approval exceptions included in paragraph (c)(7)(i)(c) or paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X are as follows: |
(b) 0%
(c) 0%
(d) 0%
| (f) | The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was less than fifty percent. |
| (g) | The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment advisor (not including any sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor), and any entity controlling, controlled by, or under common control with the advisor that provides ongoing services to the registrant for 2022 were $16,250 and $0 for the registrant and the registrant’s investment advisor, respectively and for 2023 were $21,000 and $44,000 for the registrant and the registrant’s investment advisor, respectively. |
| (h) | The registrant’s audit committee of its Board of Trustees determined that the provision of non-audit services that were rendered to the Registrant’s investment advisor (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor), and any entity controlling, controlled by, or under common control with the investment advisor that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. |
Item 5. Audit Committee of Listed Registrants.
| (a) | The registrant has a separately designated audit committee consisting of all the independent trustees of the registrant. The members of the audit committee are: Thomas R. Kadlec, Niel B. Nielson, Denise M. Keefe, Richard E. Erickson and Robert F. Keith. |
Item 6. Investments.
| (a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
| (b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
A description of the policies and procedures used to vote proxies on behalf of the Fund is attached as an exhibit.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
(a)(1) Identification of Portfolio Manager(s) or Management Team Members and Description of Role of Portfolio Manager(s) or Management Team Members
Information provided as of March 8, 2024
abrdn Inc. (“abrdn” or the “Sub-Advisor”), a Securities and Exchange Commission registered investment advisor, is an indirect wholly-owned subsidiary of abrdn plc. abrdn plc is a publicly-traded global provider of long-term savings and investments listed on the London Stock Exchange, managing assets for institutional and retail clients from offices around the world. Investment decisions for the Fund are made by abrdn using a team approach and not by any one individual. By making team decisions, abrdn seeks to ensure that the investment process results in consistent returns across all portfolios with similar objectives. abrdn does not employ separate research analysts. Instead, abrdn’s investment managers combine analysis with portfolio management. Each member of the team has sector and portfolio responsibilities such as day-to-day monitoring of liquidity. The overall result of this matrix approach is a high degree of cross-coverage, leading to a deeper understanding of the securities in which abrdn invests. Below are the members of the team with significant responsibility for the day-to-day management of the Fund’s portfolio.
Brett Diment
Head of Global Emerging Market Debt
Mr. Diment is the Head of Global Emerging Market Debt and joined abrdn following the acquisition of Deutsche Asset Management (“Deutsche”) in 2005. He is responsible for the day-to-day management of the Emerging Market Debt Team and portfolios. Mr. Diment had been at Deutsche since 1991 as a member of the Fixed Income group and served as Head of the Emerging Debt Team there from 1999 until its acquisition by abrdn.
Max Wolman
Investment Director, Emerging Market Debt
Mr. Wolman is an Investment Director on the Emerging Market Debt Team and has been with abrdn since January 2001. Mr. Wolman originally specialized in currency and domestic debt analysis but is now responsible for a wide range of emerging debt analysis including external and corporate issuers. Mr. Wolman is a member of the Emerging Market Debt Investment Committee at abrdn and is also responsible for the daily implementation of the investment process.
Edwin Gutierrez
Head of Emerging Market Sovereign Debt
Mr. Gutierrez is the Head of Emerging Market Sovereign Debt. Mr. Gutierrez joined abrdn via the acquisition of Deutsche Asset Management's London and Philadelphia fixed income businesses in 2005, where he held the same role since joining Deutsche in 2000.
Aaron Rock
Head of Nominal Rates, Rates Management
Mr. Rock was appointed Head of Nominal Rates in October 2023 and took on the lead management role for the Global Government Bond funds. Prior to that he was an Investment Director within the Rates & Inflation team. Mr. Rock joined abrdn via the acquisition of Ignis Asset Management in 2014.
Kevin Daly
Investment Director, Emerging Markets Debt
Mr. Daly is an Investment Director on the Emerging Market Debt team and joined abrdn in 2007. Prior to joining abrdn, Mr. Daly worked at Standard & Poor’s in London and Singapore where he was as a Credit Market Analyst covering global emerging debt.
| (a)(2) | Other Accounts Managed by Portfolio Manager(s) or Management Team Member and Potential Conflicts of Interest |
Other Accounts Managed by Portfolio Manager(s) or Management Team Member
Information provided as of December 31, 2023
Name of Portfolio Manager or Team Member |
Type of Accounts*** |
|
Assets |
#
of Accounts Managed for which Advisory Fee is Based on Performance |
Total Assets
for |
| 1. Brett Diment | Registered Investment Companies: | 1 | $184,941,858.95 | 0 | $0 |
| Other Pooled Investment Vehicles: | 21 | $4,185,445,579 | 0 | $0 | |
| Other Accounts: | 14 | $8,603,416,051 | 0 | $0 | |
| 2. Max Wolman | Registered Investment Companies: | 1 | $184,941,858.95 | 0 | $0 |
| Other Pooled Investment Vehicles: | 21 | $4,185,445,579 | 0 | $0 | |
| Other Accounts: | 14 | $8,603,416,051 | 0 | $0 | |
| 3. Edwin Gutierrez | Registered Investment Companies: | 1 | $184,941,858.95 | 0 | $0 |
| Other Pooled Investment Vehicles: | 21 | $4,185,445,579 | 0 | $0 | |
| Other Accounts: | 14 | $4,961,920,964 | 0 | $0 | |
| 4. Kevin Daly | Registered Investment Companies: | 1 | $184,941,858.95 | 0 | $0 |
| Other Pooled Investment Vehicles: | 21 | $4,185,445,579 | 0 | $0 | |
| Other Accounts: | 14 | $8,603,416,051 | 0 | $0 | |
| 5. Aaron | Registered Investment Companies: | 0 | $0 | 0 | $0 |
| Other Pooled Investment Vehicles: | 0 | $ | 0 | $0 | |
| Other Accounts: | 21 | $11,999,013,163 | 0 | $0 |
Potential Conflicts of Interests
As of December 31, 2022
CONFLICTS OF INTEREST
Conflicts of Interest may arise, in the course of providing a service, where there may be a risk of damage to the interests of a client. In accordance with legal requirements in the various jurisdictions in which we operate, abrdn have in place arrangements to identify and manage Conflicts of Interest that may arise between them and their clients or between their different clients. Where abrdn does not consider that these arrangements are sufficient to manage a particular conflict, it will inform the relevant client(s) of the nature of the conflict so that the client(s) may decide how to proceed.
abrdn or any other party to whom it may have delegated its functions, may in its absolute discretion, effect transactions in which it or any of its affiliated companies has, directly or indirectly, a material interest, or a relationship of any description with another party which may involve a potential conflict with abrdn’s duty to its client. abrdn ensures that such transactions are effected on terms which are not materially less favorable to the client than if the potential conflict had not existed.
Such potential conflicting interests or duties may, inter alia, arise because:
| • | abrdn or an affiliated company undertakes an activity that is regulated by a relevant regulator for other clients including its affiliated companies (and the clients of affiliated companies) |
| • | a Director or Employee of abrdn, or of an affiliated company, is a director of, holds or deals in securities of, or is otherwise interested in, any company whose securities are held or dealt in on behalf of a client |
| • | a transaction is effected in securities issued by an affiliated company or the client of an affiliated company |
| • | a transaction is effected in securities in respect of which abrdn or an affiliated company may benefit from a commission, fee, mark-up or mark-down payable otherwise than by the client, and abrdn may be remunerated by the counterparty to any such transaction |
| • | abrdn deals on behalf of the client with, or in the securities of, an affiliated company |
| • | abrdn acts as agent for the client in relation to transactions in which it is also acting as agent for the account of other clients and/or affiliated companies |
| • | abrdn, acting as principal, sells to or purchases currency from the client and, in exceptional circumstances, deals in securities as principal with the client |
| • | a transaction is effected in units or shares of connected investment trusts, unit trusts, open ended investment companies or of any company of which abrdn or an affiliated company is the manager, authorized corporate director, operator, banker, adviser, custodian, administrator, trustee or depositary |
| • | abrdn effects transactions involving placings and/or new issues with an affiliated company who may be acting as principal or receiving agent’s commission |
| • | a transaction is effected in securities of a company for which abrdn or an affiliated company has underwritten, or managed or arranged an issue or offer for sale within the previous 12 months |
| • | abrdn or an affiliated company receives remuneration or other benefits by reason of acting in corporate finance or similar transactions involving a company whose securities are held by the client |
| • | a transaction is effected in securities in respect of which abrdn or an affiliated company, or a Director or Employee of abrdn or an affiliated company, is contemporaneously trading or has traded on its own account or has either a long or short position |
| • | abrdn acting as agent for the client, matches an order of the client with an order of another client for whom it is acting as agent |
| • | abrdn effects transactions in investments, the prices of which are being or have been, stabilized by transactions involving an affiliated company. |
At abrdn, existing and potential conflicts of interest are recorded and reviewed by Risk & Compliance to ensure that internal procedures are sufficient to manage a particular conflict.
Please also refer to our Form ADV Part II for additional information regarding Conflict of Interest.
(a)(3) Compensation Structure of Portfolio Manager(s) or Management Team Members
Information provided as of December 31, 2023
abrdn Remuneration Language
abrdn’s remuneration policies are designed to support its business strategy as a leading international asset manager. The objective is to attract, retain and reward talented individuals for the delivery of sustained, superior returns for abrdn’s clients and shareholders. abrdn operates in a highly competitive international employment market, and aims to maintain its strong track record of success in developing and retaining talent.
abrdn’s policy is to recognize corporate and individual achievements each year through an appropriate annual bonus scheme. The bonus is a single, fully discretionary variable pay award. The aggregate value of awards in any year is dependent on the group’s overall performance and profitability. Consideration is also given to the levels of bonuses paid in the market. Individual awards, which are payable to all members of staff, are determined by a rigorous assessment of achievement against defined objectives.
The variable pay award comprises a mixture of cash and a deferred award based on the size of the award. Deferred awards are by default abrdn plc shares, with an option to put up to 50% of deferral into funds. Overall compensation packages are designed to be competitive relative to the investment management industry.
Base Salary
abrdn’s policy is to pay a fair salary commensurate with the individual’s role, responsibilities and experience, and having regard to the market rates being offered for similar roles in the asset management sector and other comparable companies. Any increase is generally to reflect inflation and is applied in a manner consistent with other abrdn employees; any other increases must be justified by reference to promotion or changes in responsibilities.
Annual Bonus
The Remuneration Committee determines the key performance indicators that will be applied in considering the overall size of the bonus pool. In line with practices amongst other asset management companies, individual bonuses are not subject to an absolute cap. However, the aggregate size of the bonus pool is dependent on the group’s overall performance and profitability. Consideration is also given to the levels of bonuses paid in the market. Individual awards are determined by a rigorous assessment of achievement against defined objectives, and are reviewed and approved by the Remuneration Committee.
abrdn has a deferral policy which is intended to assist in the retention of talent and to create additional alignment of executives’ interests with abrdn’s sustained performance and, in respect of the deferral into funds, managed by abrdn, to align the interest of asset managers with our clients.
Staff performance is reviewed formally at least once a year. The review process evaluates the various aspects that the individual has contributed to abrdn, and specifically, in the case of portfolio managers, to the relevant investment team. Discretionary bonuses are based on client service, asset growth and the performance of the respective portfolio manager. Overall participation in team meetings, generation of original research ideas and contribution to presenting the team externally are also evaluated.
In the calculation of a portfolio management team’s bonus, abrdn takes into consideration investment matters (which include the performance of funds, adherence to the company investment process, and quality of company meetings) as well as more subjective issues such as team participation and effectiveness at client presentations through KPI scorecards. To the extent performance is factored in, such performance is not judged against any specific benchmark and is evaluated over the period of a year - January to December. The pre- or after-tax performance of an individual account is not considered in the determination of a portfolio manager’s discretionary bonus; rather the review process evaluates the overall performance of the team for all of the accounts the team manages.
Portfolio manager performance on investment matters is judged over all of the accounts the portfolio manager contributes to and is documented in the appraisal process. A combination of the team’s and individual’s performance is considered and evaluated.
Although performance is not a substantial portion of a portfolio manager’s compensation, abrdn also recognizes that fund performance can often be driven by factors outside one’s control, such as (irrational) markets, and as such pay’s attention to the effort by portfolio managers to ensure integrity of our core process by sticking to disciplines and processes set, regardless of momentum and ‘hot’ themes. Short-terming is thus discouraged, and trading-oriented managers will thus find it difficult to thrive in the abrdn environment. Additionally, if any of the aforementioned undue risks were to be taken by a portfolio manager, such trend would be identified via abrdn’s dynamic compliance monitoring system.
In rendering investment management services, the Adviser may use the resources of additional investment adviser subsidiaries of abrdn plc. These affiliates have entered into a memorandum of understanding (MOU) pursuant to which investment professionals from each affiliate may render portfolio management, research or trading services to abrdn clients. Each investment professional who renders portfolio management, research or trading services under a MOU or personnel sharing arrangement (“Participating Affiliate”) must comply with the provisions of the Advisers Act, the 1940 Act, the Securities Act of 1933, as amended, (the “Securities Act”), the Exchange Act, and the Employee Retirement Income Security Act of 1974, and the laws of states or countries in which the Adviser does business or has clients. No remuneration is paid by the Fund with respect to the MOU/personnel sharing arrangements.
Equities-specific Remuneration
We have implemented a clear performance measurement framework to help drive consistency and transparency across the equity division and also clearly link individual’s performance and contribution to the success of their relevant strategies, desk and key stakeholders. The framework covers four key areas:
| • | Investment excellence – quantitative and qualitative assessment of research, strategy performance and information ratio (from a team and individual perspective) |
| • | Collaboration – contribution to peer review within the team and insight sharing across asset classes |
| • | Client engagement – information and support |
| • | Commerciality – primarily for team leaders; stewardship of team assets, profitability and stakeholder alignment. |
| • | ESG - qualitative informed by various inputs including peer and stakeholder feedback. |
The framework is heavily skewed to investment excellence and team collaboration for the majority of investment personnel, which reinforces our organizational structure and objective of delivering positive outcomes for our clients and stakeholders.
Annual remuneration over a set threshold includes a significant deferral into shares of our parent company or into internally-run funds in order to align our portfolio managers with the objectives of their clients and the organization.
More information of the firm’s remuneration policy can be found via the following link:
https://www.abrdn.com/corporate/about-us/our-leadership-team/remuneration-disclosure
(a)(4) Disclosure of Securities Ownership
The information below is as of December 31, 2022
|
Name of Portfolio Manager or Team Member |
Dollar ($) Range of Fund Shares Beneficially Owned | |
| Brett Diment | None | |
| Max Wolman | None | |
| Edwin Guiterrez | None | |
| Kevin Daly | None | |
| Aaron Rock | None |
| (b) | Not applicable. |
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
| (a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
(a) Not applicable.
(b) Not applicable.
Item [18]. Recovery of Erroneously Awarded Compensation.
Not applicable.
Item 14 Exhibits.
| (a)(1) | Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto. |
| (a)(2) | Not Applicable. |
| (a)(3) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
| (a)(4) | Not applicable. |
| (b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
| (c) | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies required by Item 7 is 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 M. Dykas | |
| James M. Dykas, President and Chief Executive Officer (principal executive officer) |
| Date: | March 8, 2024 |
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 M. Dykas | |
| James M. Dykas, President and Chief Executive Officer (principal executive officer) |
| Date: | March 8, 2024 |
| By (Signature and Title)* | /s/ Derek D. Maltbie | |
| Derek D. Maltbie, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
| Date: | March 8, 2024 |
* Print the name and title of each signing officer under his or her signature.
SENIOR FINANCIAL OFFICER
CODE OF CONDUCT
I. Introduction
This code of conduct is being adopted by the investment companies advised by First Trust Advisors L.P., from time to time, (the "FUNDS"). The reputation and integrity of the Funds are valuable assets that are vital to the Funds' success. Each officer of the Funds, and officers and employees of the investment adviser to the Funds who work on Fund matters, including each of the Funds' senior financial officers ("SFOS"), is responsible for conducting each Fund's business in a manner that demonstrates a commitment to the highest standards of integrity. SFOs include the Principal Executive Officer (who is the President), the Controller (who is the principal accounting officer), and the Treasurer (who is the principal financial officer), and any person who performs a similar function.
The Funds, First Trust Advisors L.P. and First Trust Portfolios have adopted Codes of Ethics under Rule 17j-1 under the Investment Company Act of 1940 (the "RULE 17J-1 CODE"). These Codes of Ethics are designed to prevent certain conflicts of interest that may arise when officers, employees, or directors of the Funds and the foregoing entities know about present or future Fund transactions and/or have the power to influence those transactions, and engage in transactions with respect to those same securities in their personal account(s) or otherwise take advantage of their position and knowledge with respect to those securities. In an effort to prevent these conflicts and in accordance with Rule 17j-1, the Funds adopted their Rule 17j-1 Code to prohibit transactions and conduct that create conflicts of interest, and to establish compliance procedures.
The Sarbanes-Oxley Act of 2002 was designed to address corporate malfeasance and to help assure investors that the companies in which they invest are accurately and completely disclosing financial information. Under Section 406 of the Act, all public companies (including the Funds) must either have a code of ethics for their SFOs, or disclose why they do not. The Act was intended to prevent future situations (such as occurred in well-reported situations involving such companies as Enron and WorldCom) where a company creates an environment in which employees are afraid to express their opinions or to question unethical and potentially illegal business practices.
The Funds have chosen to adopt a senior financial officer Code of Conduct to encourage their SFOs, and other Fund officers and employees of First Trust Advisors or First Trust Portfolios to act ethically and to question potentially unethical or illegal practices, and to strive to ensure that the Funds' financial disclosures are complete, accurate, and understandable.
II. Purposes of This Code of Conduct
The purposes of this Code are:
A. To promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
B. To promote full, fair, accurate, timely, and understandable disclosure in reports and documents that the Funds file with, or submits to, the SEC and in other public communications the Funds make;
C. To promote compliance with applicable governmental laws, rules and regulations;
D. To encourage the prompt internal reporting to an appropriate person of violations of the Code; and
E. To establish accountability for adherence to the Code.
III. Questions About This Code
The Funds' Boards of Trustees have designated W. Scott Jardine or other appropriate officer designated by the President of the respective Funds to be the Compliance Coordinator for the implementation and administration of the Code.
IV. Handling of Financial Information
The Funds have adopted guidelines under which its SFOs perform their duties. However, the Funds expect that all officers or employees of the adviser or distributor who participate in the preparation of any part of any Fund's financial statements follow these guidelines with respect to each Fund:
A. Act with honesty and integrity and avoid violations of this Code, including actual or apparent conflicts of interest with the Fund in personal and professional relationships.
B. Disclose to the Fund's Compliance Coordinator any material transaction or relationship that reasonably could be expected to give rise to any violations of the Code, including actual or apparent conflicts of interest with the Fund. You should disclose these transactions or relationships whether you are involved or have only observed the transaction or relationship. If it is not possible to disclose the matter to the Compliance Coordinator, it should be disclosed to the Fund's Principal Financial Officer or Principal Executive Officer.
C. Provide information to the Fund's other officers and appropriate employees of service providers (adviser, administrator, outside auditor, outside counsel, custodian, etc.) that is accurate, complete, objective, relevant, timely, and understandable.
D. Endeavor to ensure full, fair, timely, accurate, and understandable disclosure in the Fund's periodic reports.
E. Comply with the federal securities laws and other applicable laws and rules, such as the Internal Revenue Code.
F. Act in good faith, responsibly, and with due care, competence and diligence, without misrepresenting material facts or allowing your independent judgment to be subordinated.
G. Respect the confidentiality of information acquired in the course of your work except when you have Fund approval to disclose it or where disclosure is otherwise legally mandated. You may not use confidential information acquired in the course of your work for personal advantage.
H. Share and maintain skills important and relevant to the Fund's needs.
I. Proactively promote ethical behavior among peers in your work environment.
J. Responsibly use and control all assets and resources employed or entrusted to you.
K. Record or participate in the recording of entries in the Fund's books and records that are accurate to the best of your knowledge.
V. Waivers of This Code
SFOs and other parties subject to this Code may request a waiver of a provision of this Code (or certain provisions of the Fund's Rule 17j-1 Code) by submitting their request in writing to the Compliance Coordinator for appropriate review. An executive officer of the Fund or the Audit Committee will decide whether to grant a waiver. All waivers of this Code must be disclosed to the Fund's shareholders to the extent required by SEC rules. A good faith interpretation of the provisions of this Code, however, shall not constitute a waiver.
VI. Annual Certification
Each SFO will be asked to certify on an annual basis that he/she is in full compliance with the Code and any related policy statements.
VII. Reporting Suspected Violations
A. SFOs or other officers of the Funds or employees of the First Trust group who work on Fund matters who observe, learn of, or, in good faith, suspect a violation of the Code MUST immediately report the violation to the Compliance Coordinator, another member of the Funds' or First Trust's senior management, or to the Audit Committee of the Fund Board. An example of a possible Code violation is the preparation and filing of financial disclosure that omits material facts, or that is accurate but is written in a way that obscures its meaning.
B. Because service providers such as an administrator, outside accounting firm, and custodian provide much of the work relating to the Funds' financial statements, you should be alert for actions by service providers that may be illegal, or that could be viewed as dishonest or unethical conduct. You should report these actions to the Compliance Coordinator even if you know, or think, that the service provider has its own code of ethics for its SFOs or employees.
C. SFOs or other officers or employees who report violations or suspected violations in good faith will not be subject to retaliation of any kind. Reported violations will be investigated and addressed promptly and will be treated confidentially to the extent possible.
VIII. Violations of The Code
A. Dishonest, unethical or illegal conduct will constitute a violation of this Code, regardless of whether this Code specifically refers to that particular conduct. A violation of this Code may result in disciplinary action, up to and including termination of employment. A variety of laws apply to the Funds and their operations, including the Securities Act of 1933, the Investment Company Act of 1940, state laws relating to duties owed by Fund directors and officers, and criminal laws. The federal securities laws generally prohibit the Funds from making material misstatements in its prospectus and other documents filed with the SEC, or from omitting to state a material fact. These material misstatements and omissions include financial statements that are misleading or omit materials facts.
B. Examples of criminal violations of the law include stealing, embezzling, misapplying corporate or bank funds, making a payment for an expressed purpose on a Fund's behalf to an individual who intends to use it for a different purpose; or making payments, whether corporate or personal, of cash or other items of value that are intended to influence the judgment or actions of political candidates, government officials or businesses in connection with any of the Funds' activities. The Funds must and will report all suspected criminal violations to the appropriate authorities for possible prosecution, and will investigate, address and report, as appropriate, non-criminal violations.
Amended: June 1, 2009
Certification Pursuant to Rule 30a-2(a) under
the 1940 Act and Section 302
of the Sarbanes-Oxley Act
I, James M. Dykas, certify that:
| 1. | I have reviewed this report on Form N-CSR of First Trust/Aberdeen Global Opportunity Income Fund; |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
| 4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
| (d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. | The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and |
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: | March 8, 2024 | /s/ James M. Dykas | |||
| James M. Dykas, President and Chief Executive Officer (principal executive officer) |
Certification Pursuant to Rule 30a-2(a) under
the 1940 Act and Section 302
of the Sarbanes-Oxley Act
I, Derek D. Maltbie, certify that:
| 1. | I have reviewed this report on Form N-CSR of First Trust/Aberdeen Global Opportunity Income Fund; |
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
| 4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
| (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
| (d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. | The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| (a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and |
| (b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: | March 8, 2024 | /s/ Derek D. Maltbie | |||
| Derek D. Maltbie, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
Certification Pursuant to Rule 30a-2(b) under the
1940 Act and Section 906
of the Sarbanes-Oxley Act
I, James M. Dykas, President and Chief Executive Officer of First Trust/Aberdeen Global Opportunity Income Fund (the “Registrant”), certify that:
| 1. | The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
| 2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
| Date: | March 8, 2024 | /s/ James M. Dykas | |||
| James M. Dykas, President and Chief Executive Officer (principal executive officer) |
I, Derek D. Maltbie, Treasurer, Chief Financial Officer and Chief Accounting Officer of First Trust/Aberdeen Global Opportunity Income Fund (the “Registrant”), certify that:
| 1. | The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
| 2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
| Date: | March 8, 2024 | /s/ Derek D. Maltbie | |||
| Derek D. Maltbie, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer) |
abrdn U.S. Registered Advisers (the “abrdn Advisers”)
Proxy Voting Guidelines
Effective as of October 2022
Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended (the “Advisers Act”) requires the abrdn Advisers to vote proxies in a manner consistent with clients’ best interest and must not place its interests above those of its clients when doing so. It requires the abrdn Advisers to: (i) adopt and implement written policies and procedures that are reasonably designed to ensure that the abrdn Advisers vote proxies in the best interest of the clients, and (ii) to disclose to the clients how they may obtain information on how the abrdn Advisers voted proxies. In addition, Rule 204-2 requires the abrdn Advisers to keep records of proxy voting and client requests for information.
As registered investment advisers, the abrdn Advisers have an obligation to vote proxies with respect to securities held in its client portfolios in the best interests of the clients for which it has proxy voting authority.
The abrdn Advisers are committed to exercising responsible ownership with a conviction that companies adopting best practices in corporate governance will be more successful in their core activities and deliver enhanced returns to shareholders.
The abrdn Advisers have adopted a proxy voting policy. The proxy voting policy is designed and implemented in a way that is reasonably expected to ensure that proxies are voted in the best interests of clients.
Resolutions are analysed by a member of our regional investment teams or our Active Ownership Team and votes instructed following consideration of our policies, our views of the company and our investment insights. To enhance our analysis we will often engage with a company prior to voting to understand additional context and explanations, particularly where there is a deviation from what we believe to be best practice. However, voting decisions for exchange traded funds are made strictly in accordance with ISS’s proxy voting guidelines which are reviewed and approved on an annual basis.
Where contentious issues arise in relation to motions put before a shareholders’ meeting, abrdn Advisers will usually contact the management of the company to exchange views and give management the opportunity to articulate its position. The long term nature of the relationships that we develop with investee company boards should enable us to deal with any concerns that we may have over strategy, the management of risk or governance practices directly with the chairman or senior independent director. In circumstances where this approach is unsuccessful, abrdn Advisers are prepared to escalate their intervention by expressing their concerns through the company’s advisers, through interaction with other shareholders or attending and speaking at General Meetings.
In managing third party money on behalf of clients, there are a limited number of situations where potential conflicts of interest could arise in the context of proxy voting. One case is where funds are invested in companies that are either clients or related parties of clients. Another case is where one fund managed by abrdn invests in other funds managed by abrdn.
For cases involving potential conflicts of interest, abrdn Advisers have implemented procedures to ensure the appropriate handling of proxy voting decisions. The guiding principle of abrdn Advisers’ conflicts of interest policy is simple – to exercise our right to vote in the best interests of the clients on whose behalf we are managing funds.
We employ ISS as a service provider to facilitate electronic voting. We require ISS to provide recommendations based on our own set of parameters tailored to abrdn’s assessment and approach, but remain conscious always that all voting decisions are our own on behalf of our clients. We consider ISS’s recommendations and those based on our custom parameters as input to our voting decisions. We make use of the ISS standard research and recommendations and those based on our own custom policy as input to our voting decisions. Where our analysts make a voting decision that is different from the recommendations based on our custom policy they will provide a rationale for such decisions which will be made publicly available in our voting disclosures.
In order to make proxy voting decisions, an abrdn analyst will assess the resolutions at general meetings in our active investment portfolios. This analysis will be based on our knowledge of the company, but will also make use of the custom and standard recommendations provided by ISS as described above. The product of this analysis will be final voting decision instructed through ISS applied to all funds for which abrdn have been appointed to vote. For funds managed by a sub-adviser, we may delegate to the sub-adviser the authority to vote proxies; however, the sub-adviser will be required to either follow our policies and procedures or to demonstrate that their policies and procedures are consistent with ours, or otherwise implemented in the best interest of clients.
There may be certain circumstances where abrdn may take a more limited role in voting proxies. We will not vote proxies for client accounts in which the client contract specifies that abrdn will not vote. We may abstain from voting a client proxy if the voting is uneconomic or otherwise not in clients’ best interests. For companies held only in passively managed portfolios the abrdn custom recommendations provided by ISS will be used to automatically apply our voting approach; we have scope to intervene to test that this delivers appropriate results, and will on occasions intrude to apply a vote more fully in clients’ best interests. If voting securities are part of a securities lending program, we may be unable to vote while the securities are on loan. However, we have the ability to recall shares on loan or to restrict lending when required, in order to ensure all shares have voted. In addition, certain jurisdictions may impose share-blocking restrictions at various times which may prevent abrdn from exercising our voting authority.
We recognize that there may be situations in which we vote at a company meeting where we encounter a conflict of interest. Such situations include:
| • | where a portfolio manager owns the holding in a personal account |
| • | An investee company that is also a segregated client |
| • | An investee company where an executive director or officer of our company is also a director of that company |
| • | An investee company where an employee of abrdn is a director of that company |
| • | A significant distributor of our products |
| • | Any other companies which may be relevant from time to time |
We have adopted procedures within our proxy voting process to identify where a conflict exists. These procedures are designed to ensure that our voting decisions are based on our client’s best interests and are not impacted by any conflict.
The implementation of this policy, along with the conflicts of interest, will be reviewed periodically by the Active Ownership team. abrdn’s ESG Principles & Voting Policies is published on our website.
To the extent that an abrdn Adviser may rely on sub-advisers, whether affiliated or unaffiliated, to manage any client portfolio on a discretionary basis, the abrdn Adviser may delegate responsibility for voting proxies to the sub-adviser. However, such sub-advisers will be required either to follow these Policies and Procedures or to demonstrate that their proxy voting policies and procedures are consistent with these Policies and Procedures or otherwise implemented in the best interests of the abrdn Advisers ’ clients. Clients that have not granted abrdn voting authority over securities held in their accounts will receive their proxies in accordance with the arrangements they have made with their service providers.
As disclosed in Part 2A of each abrdn Adviser’s Form ADV, a client may obtain information on how its proxies were voted by requesting such information from its abrdn Adviser. Unless specifically requested by a client in writing, and other than as required for the Funds, the abrdn Advisers do not generally disclose client-specific proxy votes to third parties.
Our proxy voting records are available per request and on the SEC’s website at SEC.gov.
On occasions when it is deemed to be a fiduciary for an ERISA client’s assets, abrdn will vote the Plan assets in accordance with abrdn’s Proxy Voting Policy and in line with DOL guidance.
N-2 |
12 Months Ended | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2023
$ / shares
shares
| |||||||||||||||||||||||||
| Cover [Abstract] | |||||||||||||||||||||||||
| Entity Central Index Key | 0001302624 | ||||||||||||||||||||||||
| Amendment Flag | false | ||||||||||||||||||||||||
| Entity Inv Company Type | N-2 | ||||||||||||||||||||||||
| Document Type | N-CSR | ||||||||||||||||||||||||
| Entity Registrant Name | First Trust/abrdn Global Opportunity Income Fund | ||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Investment Objectives and Practices [Text Block] | Investment
Objectives
The
Fund’s primary objective is to seek a high level of current income. As a secondary objective, the Fund will seek capital appreciation.
Principal
Investment Policies
The
Fund will pursue its objectives by investing in the world bond markets through a diversified portfolio of investment grade and below-investment
grade government and corporate debt securities. Investments in government debt may also include bonds issued by countries considered to
be emerging markets.
Under
normal market conditions, the Fund invests substantially all of its “Managed Assets” in a diversified portfolio of fixed-income
securities, including government and corporate bonds, of U.S. and non-U.S. issuers. Under normal market conditions, the Fund invests in
securities of issuers in at least three countries (in addition to the United States), however, securities of issuers in a single country
will not exceed 30% of the Fund’s Managed Assets.
The
Fund has no stated maturity strategy. Rather, the Sub-Advisor invests in securities of various maturities which it believes offer income
and total return opportunities to the Fund. Allocation between investment grade and below-investment grade securities will vary according
to relative value and opportunity identified by the Sub-Advisor. The Fund’s portfolio positions will be undertaken according to
the quality of their risk-adjusted potential return.
The
Fund invests at least 60% of its Managed Assets in securities issued by government, government-related and supranational issuers (“government
debt”). At least 25% of the Fund’s Managed Assets will be invested in U.S. dollar-denominated securities or non-U.S. dollar-denominated
securities that have been fully hedged into U.S. dollars. Government debt includes: debt securities issued or guaranteed by governments,
governmental agencies or instrumentalities and political subdivisions; debt securities issued by government owned, controlled
or sponsored entities; interests in entities organized and operated for the purpose of restructuring the investment characteristics of
instruments issued by the above-noted issuers; or debt securities issued by supranational entities such as the World Bank or the European
Union.
The
Fund:
To
the extent the Fund enters into derivatives transactions, it will do so pursuant to Rule 18f-4 under the 1940 Act. Rule 18f-4 requires
the Fund to implement certain policies and procedures designed to manage its derivatives risks, dependent upon the Fund’s level
of exposure to derivative instruments.
Unless
otherwise stated, all investment restrictions above apply at the time of purchase and the Fund will not be required to reduce a position
due solely to market value fluctuations.
“Managed
Assets” means the gross asset value of the Fund (including assets attributable to the Fund’s Preferred Shares (defined below),
if any, and the principal amount of borrowings) minus the sum of the Fund’s accrued and unpaid dividends on any outstanding Preferred
Shares and accrued liabilities (other than the principal amount of any borrowings incurred or of commercial paper or notes issued by the
Fund). For purposes of determining Managed Assets, the liquidation preference of preferred shares of beneficial interest (“Preferred
Shares”) is not treated as a liability.
The
Fund’s investment objectives are considered fundamental and may not be changed without shareholder approval. The remainder of the
Fund’s foregoing investment policies, including its investment strategy, are considered non-fundamental and may be changed by the
Board of Trustees without shareholder approval. The Fund will provide investors with at least 60 days’ prior notice of any change
in the Fund’s investment strategy. There can be no assurance that the Fund’s investment objectives will be achieved.
Fundamental
Investment Policies
The
Fund, as a fundamental policy, may not:
1.
With respect to 75% of its total assets, purchase any securities if, as a result, more than 5% of the Fund’s total assets would
then be invested in securities of any single issuer or if, as a result, the Fund would hold more than 10% of the outstanding voting securities
of any single issuer; provided, that Government securities (as defined in the 1940 Act), securities issued by other investment companies
and cash items (including receivables) shall not be counted for purposes of this limitation;
2.
Purchase any security if, as a result of the purchase, 25% or more of the Fund’s total assets (taken at current value) would be
invested in the securities of Borrowers and other issuers having their principal business activities in the same industry; provided, that
this limitation shall not apply with respect to obligations issued or guaranteed by the U.S. Government or by its agencies or instrumentalities;
3.
Borrow money, except as permitted by the 1940 Act, the rules thereunder and interpretations thereof or pursuant to a Securities and Exchange
Commission exemptive order;
4.
Issue senior securities, as defined in the 1940 Act, other than: (i) Preferred Shares which immediately after issuance will have asset
coverage of at least 200%; (ii) indebtedness which immediately after issuance will have asset coverage of at least 300%; (iii) the borrowings
permitted by investment restriction 3 above, or (iv) pursuant to a Securities and Exchange Commission exemptive order; 5.
Make loans of funds or other assets, other than by entering into repurchase agreements, lending portfolio securities and through the purchase
of debt securities in accordance with its investment objectives, policies and limitations;
6.
Act as underwriter of another issuer’s securities, except to the extent that the Fund may be deemed to be an underwriter within
the meaning of the Securities Act of 1933 in connection with the purchase and sale of portfolio securities;
7.
Purchase or sell real estate, but this shall not prevent the Fund from investing in securities of companies that deal in real estate or
are engaged in the real estate business, including real estate investment trusts, and securities secured by real estate or interests therein
and the Fund may hold and sell real estate or mortgages on real estate acquired through default, liquidation, or other distributions of
an interest in real estate as a result of the Fund’s ownership of such securities; and
8.
Purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not
prevent the Fund from purchasing or selling options, futures contracts, derivative instruments or from investing in securities or other
instruments backed by physical commodities).
For
the purpose of applying the limitation set forth in subparagraph (2) above, an issuer shall be deemed the sole issuer of a security when
its assets and revenues are separate from other governmental entities and its securities are backed only by its assets and revenues. Similarly,
in the case of a non-governmental issuer, such as an industrial corporation or a privately owned or operated hospital, if the security
is backed only by the assets and revenues of the non-governmental issuer, then such non governmental issuer would be deemed to be the
sole issuer. Where a security is also backed by the enforceable obligation of a superior or unrelated governmental or other entity (other
than a bond insurer), it shall also be included in the computation of securities owned that are issued by such governmental or other entity.
Where a security is guaranteed by a governmental entity or some other facility, such as a bank guarantee or letter of credit, such a guarantee
or letter of credit would be considered a separate security and would be treated as an issue of such government, other entity or bank.
When a municipal bond is insured by bond insurance, it shall not be considered a security that is issued or guaranteed by the insurer;
instead, the issuer of such municipal bond will be determined in accordance with the principles set forth above.
The
foregoing fundamental investment policies, together with the investment objective of the Fund, cannot be changed without approval by holders
of a majority of the outstanding voting securities of the Fund, as defined in the 1940 Act, which includes Common Shares and Preferred
Shares, if any, voting together as a single class, and of the holders of the outstanding Preferred Shares voting as a single class. Under
the 1940 Act a “majority of the outstanding voting securities” means the vote of: (1) 67% or more of the Fund’s shares
present at a meeting, if the holders of more than 50% of the Fund’s shares are present or represented by proxy; or (2) more than
50% of the Fund’s shares, whichever is less.
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| Risk Factors [Table Text Block] | Principal
Risks
The
Fund is a closed-end management investment company designed primarily as a long-term investment and not as a trading vehicle. The Fund
is not intended to be a complete investment program and, due to the uncertainty inherent in all investments, there can be no assurance
that the Fund will achieve its investment objectives. The following discussion summarizes the principal risks associated with investing
in the Fund, which includes the risk that you could lose some or all of your investment in the Fund. The Fund is subject to the informational
requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940 and, in accordance therewith, files reports,
proxy statements and other information that is available for review.
Africa
Risk. The Fund may invest in African issuers. A fund that invests in securities issued by African issuers
is subject to certain risks specifically associated with investments in the securities of African issuers. Investing in the economies
of African countries involves risks not typically associated with investments in securities of issuers in more developed economies, countries
or geographic regions that may negatively affect the value of investments in the Fund. Such heightened risks include, among others, expropriation
and/or nationalization of assets, restrictions on and government intervention in international trade, confiscatory taxation, political
instability, including authoritarian and/or military involvement in governmental decision making, armed conflict, civil war, and social
instability as a result of religious, ethnic and/or socioeconomic unrest or widespread outbreaks of disease. The securities markets in
Africa are underdeveloped and are often considered to be less correlated to global economic cycles than markets located in more developed
economies, countries or geographic regions. Securities markets in African countries are subject to greater risks associated with market
volatility, lower market capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding
the existence of trading markets, governmental control and heavy regulation of labor and industry. Moreover, trading on African securities
markets may be suspended altogether. Certain governments in African countries may restrict or control to varying degrees the ability of
foreign investors to invest in securities of issuers located or operating in those countries. Moreover, certain countries in Africa may
require governmental approval or special licenses prior to investment by foreign investors; may limit the amount of investment by foreign
investors in a particular industry and/or issuer; may limit such foreign investment to a certain class of securities of an issuer that
may have less advantageous rights than the classes available for purchase by domestic investors of those countries;
and/or may impose additional taxes on foreign investors. These factors, among others, make investing in issuers located or operating in
countries in Africa significantly riskier than investing in issuers located or operating in more developed countries.
Asia
Risk. The Fund is subject to certain risks specifically associated with investments in the securities
of Asian issuers. Many Asian economies have experienced rapid growth and industrialization, and there is no assurance that this growth
rate will be maintained. Some Asian economies are highly dependent on trade, and economic conditions in other countries within and outside
Asia can impact these economies. Certain of these economies may be adversely affected by trade or policy disputes with its major trade
partners. There is also a high concentration of market capitalization and trading volume in a small number of issuers representing a limited
number of industries, as well as a high concentration of investors and financial intermediaries. Certain Asian countries have experienced
and may in the future experience expropriation and nationalization of assets, confiscatory taxation, currency manipulation, political
instability, armed conflict and social instability as a result of religious, ethnic, socio-economic and/or political unrest. In particular,
escalated tensions involving North Korea and any outbreak of hostilities involving North Korea could have a severe adverse effect on Asian
economies. Governments of certain Asian countries have exercised, and continue to exercise, substantial influence over many aspects of
the private sector. In certain cases, the government owns or controls many companies, including the largest in the country. Accordingly,
government actions could have a significant effect on the issuers of the Fund’s securities or on economic conditions generally.
Recent developments in relations between the U.S. and China have heightened concerns of increased tariffs and restrictions on trade between
the two countries. An increase in tariffs or trade restrictions, or even the threat of such developments, could lead to a significant
reduction in international trade, which could have a negative impact on the economy of Asian countries and a commensurately negative impact
on the Fund.
Asset-Backed
Securities Risk. Asset-backed securities are debt securities typically created by buying
and pooling loans or other receivables other than mortgage loans and creating securities backed by those similar type assets. Asset-backed
securities are subject to credit risk, extension risk, interest rate risk, liquidity risk, prepayment risk and valuation risk, as well
as risk of default on the underlying assets. Rising interest rates tend to extend the duration of such securities, making them more sensitive
to losses in value resulting from increases in interest rates. These securities are generally not backed by the full faith and credit
of the U.S. government and are subject to the risk of default on the underlying asset or loan, particularly during periods of economic
downturn. Payment of interest and repayment of principal on asset-backed securities is largely dependent upon the cash flows generated
by the assets backing the securities. Asset-backed security values may also be affected by the creditworthiness of the servicing agent
for the pool, the originator of the loans or receivables and any entities providing credit enhancement.
Credit
Agency Risk. Credit ratings are determined by credit rating agencies and are only the opinions of such
entities. Ratings assigned by a rating agency are not absolute standards of credit quality and do not evaluate market risk or the liquidity
of securities. Any shortcomings or inefficiencies in credit rating agencies’ processes for determining credit ratings may adversely
affect the credit ratings of securities held by the Fund or such credit rating agency’s ability to evaluate creditworthiness, and,
as a result, may adversely affect those securities’ perceived or actual credit risk.
Credit
and Below-Investment Grade Securities Risk. Credit risk is the risk that the issuer or other obligated
party of a debt security in the Fund’s portfolio will fail to pay, or it is perceived that it will fail to pay, dividends and/or
interest or repay principal, when due. Below-investment grade instruments, including instruments that are not rated but judged to be of
comparable quality, are commonly referred to as high-yield securities or “junk” bonds and are considered speculative with
respect to the issuer’s capacity to pay dividends or interest and repay principal and are more susceptible to default or decline
in market value than investment grade securities due to adverse economic and business developments. High-yield securities are often unsecured
and subordinated to other creditors of the issuer. The market values for high-yield securities tend to be very volatile, and these securities
are generally less liquid than investment grade securities. For these reasons, an investment in the Fund is subject to the following specific
risks: (i) increased price sensitivity to changing interest rates and to a deteriorating economic environment; (ii) greater risk of loss
due to default or declining credit quality; (iii) adverse company specific events more likely to render the issuer unable to make dividend,
interest and/or principal payments; (iv) negative perception of the high-yield market which may depress the price and liquidity of high-yield
securities; (v) volatility; and (vi) liquidity.
Credit
Linked Notes Risk. Credit linked notes are securities that are collateralized by one or more credit
default swaps on designated debt 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 referenced 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. 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. The market for credit linked notes may suddenly become
illiquid. 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.
Current
Market Conditions Risk. Current market conditions risk is the risk that a particular investment, or
shares of the Fund in general, may fall in value due to current market conditions. As a means to fight inflation, which remains at elevated
levels, the Federal Reserve and certain foreign central banks have raised interest rates and expect to continue to do so, and the Federal
Reserve has announced that it intends to reverse previously implemented quantitative easing. U.S. regulators have proposed several changes
to market and issuer regulations which would directly impact the Fund, and any regulatory changes could adversely impact the Fund’s
ability to achieve its investment strategies or make certain investments. Recent and potential future bank failures could result in disruption
to the broader banking industry or markets generally and reduce confidence in financial institutions and the economy as a whole, which
may also heighten market volatility and reduce liquidity. The ongoing adversarial political climate in the United States, as well as political
and diplomatic events both domestic and abroad, have and may continue to have an adverse impact the U.S. regulatory landscape, markets
and investor behavior, which could have a negative impact on the Fund’s investments and operations. Other unexpected political,
regulatory and diplomatic events within the U.S. and abroad may affect investor and consumer confidence and may adversely impact financial
markets and the broader economy. For example, in February 2022, Russia invaded Ukraine which has caused and could continue to cause significant
market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting
from those hostilities have and could continue to have a significant impact on certain Fund investments as well as Fund performance and
liquidity. The economies of the United States and its trading partners, as well as the financial markets generally, may be adversely impacted
by trade disputes and other matters. For example, the United States has imposed trade barriers and restrictions on China. In addition,
the Chinese government is engaged in a longstanding dispute with Taiwan, continually threatening an invasion. If the political climate
between the United States and China does not improve or continues to deteriorate, if China were to attempt invading Taiwan, or if other
geopolitical conflicts develop or worsen, economies, markets and individual securities may be adversely affected, and the value of the
Fund’s assets may go down. The COVID-19 global pandemic, or any future public health crisis, and the ensuing policies enacted by
governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets,
negatively impacting global growth prospects. While vaccines have been developed, there is no guarantee that vaccines will be effective
against emerging future variants of the disease. As this global pandemic illustrated, such events may affect certain geographic regions,
countries, sectors and industries more significantly than others. Advancements in technology may also adversely impact markets and the
overall performance of the Fund. For instance, the economy may be significantly impacted by the advanced development and increased regulation
of artificial intelligence. These events, and any other future events, may adversely affect the prices and liquidity of the Fund’s
portfolio investments and could result in disruptions in the trading markets.
Cyber
Security Risk. The Fund is susceptible to potential operational risks through breaches in cyber security.
A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information,
suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage,
additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized
access to the Fund’s digital information systems through “hacking” or malicious software coding, but may also result
from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition,
cyber security breaches of the Fund’s third-party service providers, such as its administrator, transfer agent, custodian, or sub-advisor,
as applicable, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cyber
security breaches. The Fund has established risk management systems designed to reduce the risks associated with cyber security. However,
there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security systems
of issuers or third party service providers. Substantial costs may be incurred by the Fund in order to resolve or prevent cyber incidents
in the future.
Emerging
Markets Risk. Investments in emerging market securities are considered speculative. In addition to the
general risks of investing in non-U.S. securities, heightened risks of investing in emerging markets securities include: smaller market
capitalization of securities markets, which may suffer periods of relative illiquidity; significant price volatility; restrictions on
foreign investment; and possible restrictions on repatriation of investment income and capital. Furthermore, foreign investors may be
required to register the proceeds of sales, and future economic or political crises could lead to price controls, forced mergers, expropriation
or confiscatory taxation, seizure, nationalization or creation of government monopolies. The currencies of emerging market countries may
experience significant declines against the U.S. dollar, and devaluation may occur subsequent to investments in these currencies by the
Fund. Inflation and rapid fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities
markets of certain emerging market countries. The risks associated with investing in emerging market securities also include: greater
political uncertainties, risk of market closure or manipulation, limited reliable access to capital, dependence on international trade
or development assistance, overburdened infrastructures and environmental problems. Emerging market countries also often have less
uniformity in accounting and reporting requirements, unsettled securities laws, unreliable securities valuation and greater risks associated
with custody of securities. In addition, because the Public Company Accounting Oversight Board is generally restricted
from
inspecting the audit work and practices of registered accountants in certain emerging market countries there is the risk that material
accounting and financial information about issuers in such countries may be unavailable or unreliable.
Shareholder
claims that are available in the U.S. may be less reliable in emerging market countries, and claims that are available in the U.S., as
well as regulatory oversight and authority that is common in the U.S., including for claims based on fraud, may be difficult or impossible
for shareholders of securities in emerging market countries or for U.S. authorities to pursue. The limitations associated with investments
in emerging market companies could impact the Fund’s ability to achieve its investment objective.
Europe
Risk. The Fund is subject to certain risks associated specifically with investments in securities of
European issuers, in addition to the risks associated with investments in non-U.S. securities generally. Political or economic disruptions
in European countries, even in countries in which the Fund is not invested, may adversely affect security values and thus the Fund’s
holdings. A significant number of countries in Europe are member states in the European Union (“EU”), and the member states
no longer control their own monetary policies by directing independent interest rates for their currencies. In these member states, the
authority to direct monetary policies, including money supply and official interest rates for the Euro, is exercised by the European Central
Bank. In a 2016 referendum, the United Kingdom elected to withdraw from the EU (“Brexit”). After years of negotiations between
the United Kingdom and the EU, a withdrawal agreement was reached whereby the United Kingdom formally left the EU. As the second largest
economy among EU members, the implications of the United Kingdom’s withdrawal are difficult to gauge and cannot be fully known.
Trade between the United Kingdom and the EU is highly integrated through supply chains and trade in services, as well as through multinational
companies. The United Kingdom’s departure may negatively impact the EU and Europe as a whole by causing volatility within the EU,
triggering prolonged economic downturns in certain European countries or sparking additional member states to contemplate departing the
EU (thereby perpetuating political instability in the region).
Fixed
Income Securities Risk. An investment in fixed income securities is subject to certain risks, including:
Forward
Foreign Currency Exchange Contracts Risk. The Fund may use forward foreign currency exchange contracts
for both hedging and investment purposes. A forward foreign currency exchange contract is a negotiated agreement between the contracting
parties to exchange a specified amount of currency at a specified future time at a specified rate. The rate can be higher or lower than
the spot rate between the currencies that are the subject of the contract. The Fund may also invest in non-deliverable forward foreign
currency exchange contracts (“NDFs”). NDFs are similar to other forward foreign currency exchange contracts, but do
not require or permit physical delivery of currency upon settlement. Instead, settlement is made in cash based on the difference
between the contracted exchange rate and the spot foreign exchange rate at settlement.
Forward
foreign currency exchange contracts involve certain risks, including foreign currency risk, the risk of failure of the counterparty to
perform its obligations under the contract, and liquidity risk. For example, because forward currency exchange contracts are privately
negotiated transactions, there can be no assurance that the Fund will be able to roll-over a forward currency exchange contract upon its
expiration if it desires to do so. In addition, the principals who deal in the forward markets are not required to continue to make markets
in the currencies they trade and these markets can experience periods of illiquidity, sometimes of significant duration. The cost to the
Fund of engaging in currency exchange transactions varies with such factors as the currency involved, the length of the contract period
and prevailing market conditions. Successful use of forward foreign currency exchange contracts
depends on the portfolio manager’s skill in analyzing and predicting currency values, among other factors. Forward contracts
may substantially change the Fund’s exposure to changes in currency exchange rates and could result in losses to the Fund if currencies
do not perform as the portfolio manager anticipates. There is no assurance that the portfolio manager’s use of forward currency
contracts will be advantageous to the Fund.
When
used for hedging purposes, the Fund is subject to the risk that the use of forward contracts may not serve as a complete hedge because
of an imperfect correlation between movements in the prices of the contracts and the prices of the currencies hedged. While forward
foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the hedged currencies, they also may limit
any potential gain that might result should the value of the currencies increase. Hedging against a decline in the value of a currency
does not eliminate fluctuations in the value of a portfolio security traded in that currency or prevent a loss if the value of the security
declines. Moreover, it may not be possible for the Fund to hedge against a devaluation that is so generally anticipated that the
Fund is not able to contract to sell the currency at a price above the devaluation level it anticipates. The projection of short-term
currency market movements can be extremely difficult, and the successful execution of a hedging strategy can be highly uncertain.
Geographic
Concentration Risk. The Fund may invest from time to time a substantial amount of its assets in issuers
located in a single country or region. Because the Fund may concentrate its investments in this manner, it assumes the risk that economic,
political and social conditions in that country or region will have a significant impact on its investment performance, which may result
in greater losses and volatility than if it had diversified its investments across a greater number of countries and regions.
Government
Securities Risk. The ability of a government issuer, especially in an emerging market country,
to make timely and complete payments on its debt obligations will be strongly influenced by the government issuer’s balance of payments,
including export performance, its access to international credits and investments, fluctuations of interest rates and the extent of its
foreign reserves. A country whose exports are concentrated in a few commodities or whose economy depends on certain strategic imports
could be vulnerable to fluctuations in international prices of such commodities or imports. To the extent that a country receives payment
for its exports in currencies other than U.S. dollars, its ability to make debt payments denominated in U.S. dollars could be adversely
affected. If a government issuer cannot generate sufficient earnings from foreign trade to service its external debt, it may need to depend
on continuing loans and aid from foreign governments, commercial banks, and multinational organizations. There are no bankruptcy proceedings
similar to those in the United States by which defaulted government debt may be collected. Additional factors that may influence a government
issuer’s ability or willingness to service debt include, but are not limited to, a country’s cash flow situation, the availability
of sufficient foreign exchange on the date a payment is due, the relative size of its debt service burden to the economy as a whole, and
the issuer’s policy towards the International Monetary Fund, the International Bank for Reconstruction and Development and other
international agencies to which a government debtor may be subject.
The
Fund’s investments in non-U.S. government securities have additional risks and considerations that may not typically be associated
with investments in U.S. government securities. Economies and social and political climates in individual countries may differ,
and may differ unfavorably, from that of the United States. Non-U.S. economies may have less favorable rates of growth of gross domestic
product, rates of inflation, currency valuation, capital reinvestment, resource self-sufficiency and balance of payments positions. Many
countries have experienced extremely high rates of inflation for many years. Unanticipated economic, political and social developments
may also affect the values of the Fund’s investments and limit the availability of additional investments in such countries. Furthermore,
such developments may significantly disrupt the financial markets or interfere with the Fund’s ability to enforce its rights against
non-U.S. government issuers. Investments in debt instruments of issuers located in emerging market countries are considered speculative.
Illiquid
and Restricted Securities Risk. The Fund may invest in securities that are restricted and/or illiquid
securities. Restricted securities are securities that cannot be offered for public resale unless registered under the applicable
securities laws or that have a contractual restriction that prohibits or limits their resale. Restricted securities may be illiquid
as they generally are not listed on an exchange and may have no active trading market. Investments in restricted securities could have
the effect of increasing the amount of the Fund’s assets invested in illiquid securities if qualified institutional buyers are unwilling
to purchase these securities. Illiquid and restricted securities may be difficult to dispose of at a fair price at the times when the
Fund believes it is desirable to do so. The market price of illiquid and restricted securities generally is more volatile than that of
more liquid securities, which may adversely affect the price that the Fund pays for or recovers upon the sale of such securities. Illiquid
and restricted securities are also more difficult to value, especially in challenging markets.
Inflation
Risk. Inflation risk is the risk that the value of assets or income from investments will be worth less
in the future as inflation decreases the value of money. As inflation increases, the present value of the Fund’s assets and distributions
may decline. This risk is more prevalent with respect to fixed income securities held by the Fund. Inflation creates uncertainty over
the future real value (after inflation) of an investment. Inflation rates may change frequently and drastically as a result of various
factors, including unexpected shifts in the domestic or global economy, and the Fund’s investments may not keep pace with inflation,
which may result in losses to Fund investors.
Latin
America Risk. The Fund is subject to certain risks specifically associated with investments in the securities
of Latin American issuers. The economies of Latin American countries have in the past experienced considerable difficulties, including
high inflation rates, high interest rates, high unemployment, government overspending and political instability. International economic
conditions, particularly those in the United States, Europe and Asia, as well as world prices for oil and other commodities may also influence
the development of Latin American economies. Many Latin American countries are highly reliant on the exportation of commodities and their
economies may be significantly impacted by fluctuations in commodity prices and the global demand for certain commodities. Investments
in Latin American countries may be subject to currency risks, such as restrictions on the flow of money in and out of a country, extreme
volatility relative to the U.S. dollar, and devaluation, all of which could decrease the value of investments in Latin American companies.
Other Latin American investment risks may include inadequate investor protection, less developed regulatory, accounting, auditing and
financial standards, unfavorable changes in laws or regulations, natural disasters, corruption and military activity. The governments
of many Latin American countries may also exercise substantial influence over many aspects of the private sector, and any such exercise
could have a significant effect on companies in which the Fund invests. Securities of companies in Latin America may also be subject to
significant price volatility.
Leverage
Risk. The use of leverage by the Fund can magnify the effect of any losses. If the income and gains
from the securities and investments purchased with leverage proceeds do not cover the cost of leverage, the return to the common shares
will be less than if leverage had not been used. Leverage involves risks and special considerations for common shareholders including:
(i) the likelihood of greater volatility of net asset value and market price of the common shares than a comparable portfolio without
leverage; (ii) the risk that fluctuations in interest rates on borrowings will reduce the return to the common shareholders or will result
in fluctuations in the dividends paid on the common shares; (iii) in a declining market, the use of leverage is likely to cause a greater
decline in the net asset value of the common shares than if the Fund were not leveraged, which may result in a greater decline in the
market price of the common shares; and (iv) when the Fund uses certain types of leverage, the investment advisory fee payable to the Advisor
and by the Advisor to the Sub-Advisor will be higher than if the Fund did not use leverage.
Management
Risk and Reliance on Key Personnel. The implementation of the Fund’s investment strategy
depends upon the continued contributions of certain key employees of the Advisor and Sub-Advisor, some of whom have unique talents and
experience and would be difficult to replace. The loss or interruption of the services of a key member of the portfolio management team
could have a negative impact on the Fund.
Market
Discount from Net Asset Value. Shares of closed-end investment companies such as the Fund frequently
trade at a discount from their net asset value. The Fund cannot predict whether its common shares will trade at, below or above net asset
value.
Market
Risk. Investments held by the Fund, as well as shares of the Fund itself, are subject to market fluctuations
caused by real or perceived adverse economic conditions, political events, regulatory factors or market developments, changes in interest
rates and perceived trends in securities prices. Shares of the Fund could decline in value or underperform other investments as a result
of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism,
market manipulation, government defaults, government shutdowns, regulatory actions, political changes, diplomatic developments, the imposition
of sanctions and other similar measures, spread of infectious diseases or other public health issues, recessions, or other events could
have a significant negative impact on the Fund and its investments. Any of such circumstances could have a materially negative impact
on the value of the Fund’s shares, the liquidity of an investment, and may result in increased market volatility. During any such
events, the Fund’s shares may trade at increased premiums or discounts to their net asset value, the bid/ask spread on the Fund’s
shares may widen and the returns on investment may fluctuate.
Non-U.S.
Securities and Currency Risk. Investing in securities of non-U.S. issuers may involve certain risks
not typically associated with investing in securities of U.S. issuers. These risks include: (i) there may be less publicly available information
about non-U.S. issuers or markets due to less rigorous disclosure or accounting standards or regulatory practices; (ii) non-U.S. markets
may be smaller, less liquid and more volatile than the U.S. market; (iii) potential adverse effects of fluctuations in currency exchange
rates or controls on the value of the Fund’s investments; (iv) the economies of non-U.S. countries may grow at slower rates than
expected or may experience a downturn or recession; (v) the impact of economic, political, social or diplomatic events as well as of foreign
governmental laws or restrictions and differing legal standards; (vi) certain non-U.S. countries may impose restrictions on the ability
of non-U.S. issuers to make payments of principal and interest to investors located in the United States due to blockage of non-U.S. currency
exchanges or otherwise; and (vii) withholding and other non-U.S. taxes may decrease the Fund’s return. Foreign companies are generally
not subject to the same accounting, auditing and financial reporting standards as are U.S. companies. In addition, there may be difficulty
in obtaining or enforcing a court judgment abroad, including in the event the issuer of a non-U.S. security defaults or enters bankruptcy
administration or other proceedings. These risks may be more pronounced to the extent that the Fund invests a significant amount of its
assets in companies located in one region or in emerging markets. Because the Fund may invest in securities denominated or quoted in non-U.S.
currencies, changes in the non-U.S. currency/United States dollar exchange rate may affect the value
of the Fund’s securities and the unrealized appreciation or depreciation of investments. While certain of the Fund’s non-U.S.
dollar-denominated securities may be hedged into U.S. dollars, hedging may not alleviate all currency risks.
Recent
developments in relations between the U.S. and China had heightened concerns of increased tariffs and restrictions on trade between the
two countries. An increase in tariffs or trade restrictions, or even the threat of such developments, could lead to a significant reduction
in international trade, which could have a negative impact on global markets, including the economy of Asian countries, and a commensurately
negative impact on the Fund.
Operational
Risk. The Fund is subject to risks arising from various operational factors, including, but not limited
to, human error, processing and communication errors, errors of the Fund’s service providers, counterparties or other third-parties,
failed or inadequate processes and technology or systems failures. The Fund relies on third parties for a range of services, including
custody. Any delay or failure relating to engaging or maintaining such service providers may affect the Fund’s ability to
meet its investment objective. Although the Fund and the Advisor seek to reduce these operational risks through controls and procedures,
there is no way to completely protect against such risks.
Potential
Conflicts of Interest Risk. First Trust, abrdn Inc. (“abrdn”) and the portfolio managers
have interests which may conflict with the interests of the Fund. In particular, First Trust and abrdn currently manage and may in the
future manage and/or advise other investment funds or accounts with the same or substantially similar investment objectives and strategies
as the Fund. In addition, while the Fund is using leverage, the amount of the fees paid to First Trust (and by First Trust to abrdn) for
investment advisory and management services are higher than if the Fund did not use leverage because the fees paid are calculated based
on managed assets. Therefore, First Trust and abrdn have a financial incentive to leverage the Fund.
Reorganization
Risk. The Board of Trustees of the Fund has approved the reorganization of the Fund into abrdn Income
Credit Strategies Fund (“ACP”). If approved by shareholders, the transaction is anticipated to be consummated during
2024, subject to the satisfaction of applicable regulatory requirements and approvals and customary closing conditions. There is
no assurance when or whether such approvals, or any other approvals required for the transaction, will be obtained. Under the terms
of the proposed transaction, shareholders of the Fund would receive shares of ACP, which will have its own investment strategies and be
managed by abrdn Investments Limited and sub-advised by abrdn Inc., and thereafter cease to be a shareholder of the Fund. More information
on the proposed transaction, including the risks and considerations associated with the transaction as well as the risks of investing
in ACP, are available at https://www.ftportfolios.com/LoadContent/gohdcqj3gy3y.
Valuation
Risk. Unlike publicly traded common stock which trades on national exchanges, there is no central place
or exchange for certain debt securities trading. Debt securities generally trade on an “over-the-counter” market which may
be anywhere in the world where the buyer and seller can settle on a price. Due to the lack of centralized information and trading, the
valuation of certain debt securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial market,
unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing.
|
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| Effects of Leverage [Text Block] | Effects
of Leverage
The
aggregate principal amount of borrowings under the credit facility (the “Credit Facility”) with The Bank of Nova Scotia represented
approximately 19.12% of Managed Assets as of December 31, 2023. Asset coverage with respect to the borrowings under the Credit Facility
was 522.94% and the Fund had $3,400,000 of unutilized funds available for borrowing under the Credit Facility as of that date. As of December
31, 2023, the maximum commitment amount of the Credit Facility was $20,000,000. The interest rate under the Credit Facility is the applicable
Term SOFR rate plus 95 basis points plus a credit spread adjustment of (a) 10 bps for a loan with a one month interest period, (b) 25
bps for a loan with a three month interest period, and (c) 40 bps for a loan with a six month interest period. As of December 31, 2023,
the Fund had $16,600,000 outstanding under the Credit Facility. The Fund pays a commitment fee of 0.25% on any day that the loan balances
are less than 75% of the total commitment or 0.15% in all other events. As of December 31, 2023, the approximate average annual interest
and fee rate was 6.42%.
Assuming
that the Fund’s leverage costs remain as described above (at an assumed average annual cost of 6.42%), the annual return that the
Fund’s portfolio must experience (net of expenses) in order to cover its leverage costs would be 1.23%.
The
following table is furnished in response to requirements of the SEC. It is designed to illustrate the effect of leverage on Common Share
total return, assuming investment portfolio total returns (comprised of income and changes in the value of securities held in the Fund’s
portfolio) of (10%), (5%), 0%, 5% and 10%. These assumed investment portfolio returns are hypothetical figures and are not necessarily
indicative of the investment portfolio returns experienced or expected to be experienced by the Fund. The
table further assumes leverage representing 19.12% of the Fund’s Managed Assets, net of expenses, and an annual leverage interest
and fee rate of 6.42%.
Common
Share total return is composed of two elements: the Common Share dividends paid by the Fund (the amount of which is largely determined
by the net investment income of the Fund after paying dividends or interest on its leverage) and gains or losses on the value of the securities
the Fund owns. As required by SEC rules, the table above assumes that the Fund is more likely to suffer capital losses than to enjoy capital
appreciation. For example, to assume a total return of 0% the Fund must assume that the distributions it receives on its investments are
entirely offset by losses in the value of those securities.
|
||||||||||||||||||||||||
| Annual Interest Rate [Percent] | 6.42% | ||||||||||||||||||||||||
| Annual Coverage Return Rate [Percent] | 1.23% | ||||||||||||||||||||||||
| Effects of Leverage [Table Text Block] |
|
||||||||||||||||||||||||
| Return at Minus Ten [Percent] | (13.88%) | ||||||||||||||||||||||||
| Return at Minus Five [Percent] | (7.70%) | ||||||||||||||||||||||||
| Return at Zero [Percent] | (1.52%) | ||||||||||||||||||||||||
| Return at Plus Five [Percent] | 4.66% | ||||||||||||||||||||||||
| Return at Plus Ten [Percent] | 10.85% | ||||||||||||||||||||||||
| Effects of Leverage, Purpose [Text Block] | The
following table is furnished in response to requirements of the SEC. It is designed to illustrate the effect of leverage on Common Share
total return, assuming investment portfolio total returns (comprised of income and changes in the value of securities held in the Fund’s
portfolio) of (10%), (5%), 0%, 5% and 10%. These assumed investment portfolio returns are hypothetical figures and are not necessarily
indicative of the investment portfolio returns experienced or expected to be experienced by the Fund. The
table further assumes leverage representing 19.12% of the Fund’s Managed Assets, net of expenses, and an annual leverage interest
and fee rate of 6.42%.
|
||||||||||||||||||||||||
| Share Price | $ 6.29 | ||||||||||||||||||||||||
| NAV Per Share | $ 6.92 | ||||||||||||||||||||||||
| Latest Premium (Discount) to NAV [Percent] | (9.10%) | ||||||||||||||||||||||||
| Capital Stock, Long-Term Debt, and Other Securities [Abstract] | |||||||||||||||||||||||||
| Outstanding Security, Title [Text Block] | Common Shares outstanding (unlimited number of Common Shares has been authorized) | ||||||||||||||||||||||||
| Outstanding Security, Held [Shares] | shares | 10,143,247 | ||||||||||||||||||||||||
| Document Period End Date | Dec. 31, 2023 | ||||||||||||||||||||||||
| Africa Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Africa
Risk. The Fund may invest in African issuers. A fund that invests in securities issued by African issuers
is subject to certain risks specifically associated with investments in the securities of African issuers. Investing in the economies
of African countries involves risks not typically associated with investments in securities of issuers in more developed economies, countries
or geographic regions that may negatively affect the value of investments in the Fund. Such heightened risks include, among others, expropriation
and/or nationalization of assets, restrictions on and government intervention in international trade, confiscatory taxation, political
instability, including authoritarian and/or military involvement in governmental decision making, armed conflict, civil war, and social
instability as a result of religious, ethnic and/or socioeconomic unrest or widespread outbreaks of disease. The securities markets in
Africa are underdeveloped and are often considered to be less correlated to global economic cycles than markets located in more developed
economies, countries or geographic regions. Securities markets in African countries are subject to greater risks associated with market
volatility, lower market capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding
the existence of trading markets, governmental control and heavy regulation of labor and industry. Moreover, trading on African securities
markets may be suspended altogether. Certain governments in African countries may restrict or control to varying degrees the ability of
foreign investors to invest in securities of issuers located or operating in those countries. Moreover, certain countries in Africa may
require governmental approval or special licenses prior to investment by foreign investors; may limit the amount of investment by foreign
investors in a particular industry and/or issuer; may limit such foreign investment to a certain class of securities of an issuer that
may have less advantageous rights than the classes available for purchase by domestic investors of those countries;
and/or may impose additional taxes on foreign investors. These factors, among others, make investing in issuers located or operating in
countries in Africa significantly riskier than investing in issuers located or operating in more developed countries.
|
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| Asia Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Asia
Risk. The Fund is subject to certain risks specifically associated with investments in the securities
of Asian issuers. Many Asian economies have experienced rapid growth and industrialization, and there is no assurance that this growth
rate will be maintained. Some Asian economies are highly dependent on trade, and economic conditions in other countries within and outside
Asia can impact these economies. Certain of these economies may be adversely affected by trade or policy disputes with its major trade
partners. There is also a high concentration of market capitalization and trading volume in a small number of issuers representing a limited
number of industries, as well as a high concentration of investors and financial intermediaries. Certain Asian countries have experienced
and may in the future experience expropriation and nationalization of assets, confiscatory taxation, currency manipulation, political
instability, armed conflict and social instability as a result of religious, ethnic, socio-economic and/or political unrest. In particular,
escalated tensions involving North Korea and any outbreak of hostilities involving North Korea could have a severe adverse effect on Asian
economies. Governments of certain Asian countries have exercised, and continue to exercise, substantial influence over many aspects of
the private sector. In certain cases, the government owns or controls many companies, including the largest in the country. Accordingly,
government actions could have a significant effect on the issuers of the Fund’s securities or on economic conditions generally.
Recent developments in relations between the U.S. and China have heightened concerns of increased tariffs and restrictions on trade between
the two countries. An increase in tariffs or trade restrictions, or even the threat of such developments, could lead to a significant
reduction in international trade, which could have a negative impact on the economy of Asian countries and a commensurately negative impact
on the Fund.
|
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| Asset Backed Securities Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Asset-Backed
Securities Risk. Asset-backed securities are debt securities typically created by buying
and pooling loans or other receivables other than mortgage loans and creating securities backed by those similar type assets. Asset-backed
securities are subject to credit risk, extension risk, interest rate risk, liquidity risk, prepayment risk and valuation risk, as well
as risk of default on the underlying assets. Rising interest rates tend to extend the duration of such securities, making them more sensitive
to losses in value resulting from increases in interest rates. These securities are generally not backed by the full faith and credit
of the U.S. government and are subject to the risk of default on the underlying asset or loan, particularly during periods of economic
downturn. Payment of interest and repayment of principal on asset-backed securities is largely dependent upon the cash flows generated
by the assets backing the securities. Asset-backed security values may also be affected by the creditworthiness of the servicing agent
for the pool, the originator of the loans or receivables and any entities providing credit enhancement.
|
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| Credit Agency Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Credit
Agency Risk. Credit ratings are determined by credit rating agencies and are only the opinions of such
entities. Ratings assigned by a rating agency are not absolute standards of credit quality and do not evaluate market risk or the liquidity
of securities. Any shortcomings or inefficiencies in credit rating agencies’ processes for determining credit ratings may adversely
affect the credit ratings of securities held by the Fund or such credit rating agency’s ability to evaluate creditworthiness, and,
as a result, may adversely affect those securities’ perceived or actual credit risk.
|
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| Credit And Below Investment Grade Securities Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Credit
and Below-Investment Grade Securities Risk. Credit risk is the risk that the issuer or other obligated
party of a debt security in the Fund’s portfolio will fail to pay, or it is perceived that it will fail to pay, dividends and/or
interest or repay principal, when due. Below-investment grade instruments, including instruments that are not rated but judged to be of
comparable quality, are commonly referred to as high-yield securities or “junk” bonds and are considered speculative with
respect to the issuer’s capacity to pay dividends or interest and repay principal and are more susceptible to default or decline
in market value than investment grade securities due to adverse economic and business developments. High-yield securities are often unsecured
and subordinated to other creditors of the issuer. The market values for high-yield securities tend to be very volatile, and these securities
are generally less liquid than investment grade securities. For these reasons, an investment in the Fund is subject to the following specific
risks: (i) increased price sensitivity to changing interest rates and to a deteriorating economic environment; (ii) greater risk of loss
due to default or declining credit quality; (iii) adverse company specific events more likely to render the issuer unable to make dividend,
interest and/or principal payments; (iv) negative perception of the high-yield market which may depress the price and liquidity of high-yield
securities; (v) volatility; and (vi) liquidity.
|
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| Credit Linked Notes Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Credit
Linked Notes Risk. Credit linked notes are securities that are collateralized by one or more credit
default swaps on designated debt 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 referenced 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. 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. The market for credit linked notes may suddenly become
illiquid. 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.
|
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| Current Market Conditions Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Current
Market Conditions Risk. Current market conditions risk is the risk that a particular investment, or
shares of the Fund in general, may fall in value due to current market conditions. As a means to fight inflation, which remains at elevated
levels, the Federal Reserve and certain foreign central banks have raised interest rates and expect to continue to do so, and the Federal
Reserve has announced that it intends to reverse previously implemented quantitative easing. U.S. regulators have proposed several changes
to market and issuer regulations which would directly impact the Fund, and any regulatory changes could adversely impact the Fund’s
ability to achieve its investment strategies or make certain investments. Recent and potential future bank failures could result in disruption
to the broader banking industry or markets generally and reduce confidence in financial institutions and the economy as a whole, which
may also heighten market volatility and reduce liquidity. The ongoing adversarial political climate in the United States, as well as political
and diplomatic events both domestic and abroad, have and may continue to have an adverse impact the U.S. regulatory landscape, markets
and investor behavior, which could have a negative impact on the Fund’s investments and operations. Other unexpected political,
regulatory and diplomatic events within the U.S. and abroad may affect investor and consumer confidence and may adversely impact financial
markets and the broader economy. For example, in February 2022, Russia invaded Ukraine which has caused and could continue to cause significant
market disruptions and volatility within the markets in Russia, Europe, and the United States. The hostilities and sanctions resulting
from those hostilities have and could continue to have a significant impact on certain Fund investments as well as Fund performance and
liquidity. The economies of the United States and its trading partners, as well as the financial markets generally, may be adversely impacted
by trade disputes and other matters. For example, the United States has imposed trade barriers and restrictions on China. In addition,
the Chinese government is engaged in a longstanding dispute with Taiwan, continually threatening an invasion. If the political climate
between the United States and China does not improve or continues to deteriorate, if China were to attempt invading Taiwan, or if other
geopolitical conflicts develop or worsen, economies, markets and individual securities may be adversely affected, and the value of the
Fund’s assets may go down. The COVID-19 global pandemic, or any future public health crisis, and the ensuing policies enacted by
governments and central banks have caused and may continue to cause significant volatility and uncertainty in global financial markets,
negatively impacting global growth prospects. While vaccines have been developed, there is no guarantee that vaccines will be effective
against emerging future variants of the disease. As this global pandemic illustrated, such events may affect certain geographic regions,
countries, sectors and industries more significantly than others. Advancements in technology may also adversely impact markets and the
overall performance of the Fund. For instance, the economy may be significantly impacted by the advanced development and increased regulation
of artificial intelligence. These events, and any other future events, may adversely affect the prices and liquidity of the Fund’s
portfolio investments and could result in disruptions in the trading markets.
|
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| Cyber Security Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Cyber
Security Risk. The Fund is susceptible to potential operational risks through breaches in cyber security.
A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information,
suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage,
additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized
access to the Fund’s digital information systems through “hacking” or malicious software coding, but may also result
from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition,
cyber security breaches of the Fund’s third-party service providers, such as its administrator, transfer agent, custodian, or sub-advisor,
as applicable, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cyber
security breaches. The Fund has established risk management systems designed to reduce the risks associated with cyber security. However,
there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security systems
of issuers or third party service providers. Substantial costs may be incurred by the Fund in order to resolve or prevent cyber incidents
in the future.
|
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| Emerging Markets Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Emerging
Markets Risk. Investments in emerging market securities are considered speculative. In addition to the
general risks of investing in non-U.S. securities, heightened risks of investing in emerging markets securities include: smaller market
capitalization of securities markets, which may suffer periods of relative illiquidity; significant price volatility; restrictions on
foreign investment; and possible restrictions on repatriation of investment income and capital. Furthermore, foreign investors may be
required to register the proceeds of sales, and future economic or political crises could lead to price controls, forced mergers, expropriation
or confiscatory taxation, seizure, nationalization or creation of government monopolies. The currencies of emerging market countries may
experience significant declines against the U.S. dollar, and devaluation may occur subsequent to investments in these currencies by the
Fund. Inflation and rapid fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities
markets of certain emerging market countries. The risks associated with investing in emerging market securities also include: greater
political uncertainties, risk of market closure or manipulation, limited reliable access to capital, dependence on international trade
or development assistance, overburdened infrastructures and environmental problems. Emerging market countries also often have less
uniformity in accounting and reporting requirements, unsettled securities laws, unreliable securities valuation and greater risks associated
with custody of securities. In addition, because the Public Company Accounting Oversight Board is generally restricted
from
inspecting the audit work and practices of registered accountants in certain emerging market countries there is the risk that material
accounting and financial information about issuers in such countries may be unavailable or unreliable.
Shareholder
claims that are available in the U.S. may be less reliable in emerging market countries, and claims that are available in the U.S., as
well as regulatory oversight and authority that is common in the U.S., including for claims based on fraud, may be difficult or impossible
for shareholders of securities in emerging market countries or for U.S. authorities to pursue. The limitations associated with investments
in emerging market companies could impact the Fund’s ability to achieve its investment objective.
|
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| Europe Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Europe
Risk. The Fund is subject to certain risks associated specifically with investments in securities of
European issuers, in addition to the risks associated with investments in non-U.S. securities generally. Political or economic disruptions
in European countries, even in countries in which the Fund is not invested, may adversely affect security values and thus the Fund’s
holdings. A significant number of countries in Europe are member states in the European Union (“EU”), and the member states
no longer control their own monetary policies by directing independent interest rates for their currencies. In these member states, the
authority to direct monetary policies, including money supply and official interest rates for the Euro, is exercised by the European Central
Bank. In a 2016 referendum, the United Kingdom elected to withdraw from the EU (“Brexit”). After years of negotiations between
the United Kingdom and the EU, a withdrawal agreement was reached whereby the United Kingdom formally left the EU. As the second largest
economy among EU members, the implications of the United Kingdom’s withdrawal are difficult to gauge and cannot be fully known.
Trade between the United Kingdom and the EU is highly integrated through supply chains and trade in services, as well as through multinational
companies. The United Kingdom’s departure may negatively impact the EU and Europe as a whole by causing volatility within the EU,
triggering prolonged economic downturns in certain European countries or sparking additional member states to contemplate departing the
EU (thereby perpetuating political instability in the region).
|
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| Fixed Income Securities Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Fixed
Income Securities Risk. An investment in fixed income securities is subject to certain risks, including:
|
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| Forward Foreign Currency Exchange Contracts Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Forward
Foreign Currency Exchange Contracts Risk. The Fund may use forward foreign currency exchange contracts
for both hedging and investment purposes. A forward foreign currency exchange contract is a negotiated agreement between the contracting
parties to exchange a specified amount of currency at a specified future time at a specified rate. The rate can be higher or lower than
the spot rate between the currencies that are the subject of the contract. The Fund may also invest in non-deliverable forward foreign
currency exchange contracts (“NDFs”). NDFs are similar to other forward foreign currency exchange contracts, but do
not require or permit physical delivery of currency upon settlement. Instead, settlement is made in cash based on the difference
between the contracted exchange rate and the spot foreign exchange rate at settlement.
Forward
foreign currency exchange contracts involve certain risks, including foreign currency risk, the risk of failure of the counterparty to
perform its obligations under the contract, and liquidity risk. For example, because forward currency exchange contracts are privately
negotiated transactions, there can be no assurance that the Fund will be able to roll-over a forward currency exchange contract upon its
expiration if it desires to do so. In addition, the principals who deal in the forward markets are not required to continue to make markets
in the currencies they trade and these markets can experience periods of illiquidity, sometimes of significant duration. The cost to the
Fund of engaging in currency exchange transactions varies with such factors as the currency involved, the length of the contract period
and prevailing market conditions. Successful use of forward foreign currency exchange contracts
depends on the portfolio manager’s skill in analyzing and predicting currency values, among other factors. Forward contracts
may substantially change the Fund’s exposure to changes in currency exchange rates and could result in losses to the Fund if currencies
do not perform as the portfolio manager anticipates. There is no assurance that the portfolio manager’s use of forward currency
contracts will be advantageous to the Fund.
When
used for hedging purposes, the Fund is subject to the risk that the use of forward contracts may not serve as a complete hedge because
of an imperfect correlation between movements in the prices of the contracts and the prices of the currencies hedged. While forward
foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the hedged currencies, they also may limit
any potential gain that might result should the value of the currencies increase. Hedging against a decline in the value of a currency
does not eliminate fluctuations in the value of a portfolio security traded in that currency or prevent a loss if the value of the security
declines. Moreover, it may not be possible for the Fund to hedge against a devaluation that is so generally anticipated that the
Fund is not able to contract to sell the currency at a price above the devaluation level it anticipates. The projection of short-term
currency market movements can be extremely difficult, and the successful execution of a hedging strategy can be highly uncertain.
|
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| Geographic Concentrations Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Geographic
Concentration Risk. The Fund may invest from time to time a substantial amount of its assets in issuers
located in a single country or region. Because the Fund may concentrate its investments in this manner, it assumes the risk that economic,
political and social conditions in that country or region will have a significant impact on its investment performance, which may result
in greater losses and volatility than if it had diversified its investments across a greater number of countries and regions.
|
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| Government Securities Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Government
Securities Risk. The ability of a government issuer, especially in an emerging market country,
to make timely and complete payments on its debt obligations will be strongly influenced by the government issuer’s balance of payments,
including export performance, its access to international credits and investments, fluctuations of interest rates and the extent of its
foreign reserves. A country whose exports are concentrated in a few commodities or whose economy depends on certain strategic imports
could be vulnerable to fluctuations in international prices of such commodities or imports. To the extent that a country receives payment
for its exports in currencies other than U.S. dollars, its ability to make debt payments denominated in U.S. dollars could be adversely
affected. If a government issuer cannot generate sufficient earnings from foreign trade to service its external debt, it may need to depend
on continuing loans and aid from foreign governments, commercial banks, and multinational organizations. There are no bankruptcy proceedings
similar to those in the United States by which defaulted government debt may be collected. Additional factors that may influence a government
issuer’s ability or willingness to service debt include, but are not limited to, a country’s cash flow situation, the availability
of sufficient foreign exchange on the date a payment is due, the relative size of its debt service burden to the economy as a whole, and
the issuer’s policy towards the International Monetary Fund, the International Bank for Reconstruction and Development and other
international agencies to which a government debtor may be subject.
The
Fund’s investments in non-U.S. government securities have additional risks and considerations that may not typically be associated
with investments in U.S. government securities. Economies and social and political climates in individual countries may differ,
and may differ unfavorably, from that of the United States. Non-U.S. economies may have less favorable rates of growth of gross domestic
product, rates of inflation, currency valuation, capital reinvestment, resource self-sufficiency and balance of payments positions. Many
countries have experienced extremely high rates of inflation for many years. Unanticipated economic, political and social developments
may also affect the values of the Fund’s investments and limit the availability of additional investments in such countries. Furthermore,
such developments may significantly disrupt the financial markets or interfere with the Fund’s ability to enforce its rights against
non-U.S. government issuers. Investments in debt instruments of issuers located in emerging market countries are considered speculative.
|
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| Illiquid And Restricted Securities Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Illiquid
and Restricted Securities Risk. The Fund may invest in securities that are restricted and/or illiquid
securities. Restricted securities are securities that cannot be offered for public resale unless registered under the applicable
securities laws or that have a contractual restriction that prohibits or limits their resale. Restricted securities may be illiquid
as they generally are not listed on an exchange and may have no active trading market. Investments in restricted securities could have
the effect of increasing the amount of the Fund’s assets invested in illiquid securities if qualified institutional buyers are unwilling
to purchase these securities. Illiquid and restricted securities may be difficult to dispose of at a fair price at the times when the
Fund believes it is desirable to do so. The market price of illiquid and restricted securities generally is more volatile than that of
more liquid securities, which may adversely affect the price that the Fund pays for or recovers upon the sale of such securities. Illiquid
and restricted securities are also more difficult to value, especially in challenging markets.
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| Inflation Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Inflation
Risk. Inflation risk is the risk that the value of assets or income from investments will be worth less
in the future as inflation decreases the value of money. As inflation increases, the present value of the Fund’s assets and distributions
may decline. This risk is more prevalent with respect to fixed income securities held by the Fund. Inflation creates uncertainty over
the future real value (after inflation) of an investment. Inflation rates may change frequently and drastically as a result of various
factors, including unexpected shifts in the domestic or global economy, and the Fund’s investments may not keep pace with inflation,
which may result in losses to Fund investors.
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| Latin America Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Latin
America Risk. The Fund is subject to certain risks specifically associated with investments in the securities
of Latin American issuers. The economies of Latin American countries have in the past experienced considerable difficulties, including
high inflation rates, high interest rates, high unemployment, government overspending and political instability. International economic
conditions, particularly those in the United States, Europe and Asia, as well as world prices for oil and other commodities may also influence
the development of Latin American economies. Many Latin American countries are highly reliant on the exportation of commodities and their
economies may be significantly impacted by fluctuations in commodity prices and the global demand for certain commodities. Investments
in Latin American countries may be subject to currency risks, such as restrictions on the flow of money in and out of a country, extreme
volatility relative to the U.S. dollar, and devaluation, all of which could decrease the value of investments in Latin American companies.
Other Latin American investment risks may include inadequate investor protection, less developed regulatory, accounting, auditing and
financial standards, unfavorable changes in laws or regulations, natural disasters, corruption and military activity. The governments
of many Latin American countries may also exercise substantial influence over many aspects of the private sector, and any such exercise
could have a significant effect on companies in which the Fund invests. Securities of companies in Latin America may also be subject to
significant price volatility.
|
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| Leverage Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Leverage
Risk. The use of leverage by the Fund can magnify the effect of any losses. If the income and gains
from the securities and investments purchased with leverage proceeds do not cover the cost of leverage, the return to the common shares
will be less than if leverage had not been used. Leverage involves risks and special considerations for common shareholders including:
(i) the likelihood of greater volatility of net asset value and market price of the common shares than a comparable portfolio without
leverage; (ii) the risk that fluctuations in interest rates on borrowings will reduce the return to the common shareholders or will result
in fluctuations in the dividends paid on the common shares; (iii) in a declining market, the use of leverage is likely to cause a greater
decline in the net asset value of the common shares than if the Fund were not leveraged, which may result in a greater decline in the
market price of the common shares; and (iv) when the Fund uses certain types of leverage, the investment advisory fee payable to the Advisor
and by the Advisor to the Sub-Advisor will be higher than if the Fund did not use leverage.
|
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| Management Risk And Reliance On Key Personnel [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Management
Risk and Reliance on Key Personnel. The implementation of the Fund’s investment strategy
depends upon the continued contributions of certain key employees of the Advisor and Sub-Advisor, some of whom have unique talents and
experience and would be difficult to replace. The loss or interruption of the services of a key member of the portfolio management team
could have a negative impact on the Fund.
|
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| Market Discount From Net Asset Value [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Market
Discount from Net Asset Value. Shares of closed-end investment companies such as the Fund frequently
trade at a discount from their net asset value. The Fund cannot predict whether its common shares will trade at, below or above net asset
value.
|
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| Market Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Market
Risk. Investments held by the Fund, as well as shares of the Fund itself, are subject to market fluctuations
caused by real or perceived adverse economic conditions, political events, regulatory factors or market developments, changes in interest
rates and perceived trends in securities prices. Shares of the Fund could decline in value or underperform other investments as a result
of the risk of loss associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism,
market manipulation, government defaults, government shutdowns, regulatory actions, political changes, diplomatic developments, the imposition
of sanctions and other similar measures, spread of infectious diseases or other public health issues, recessions, or other events could
have a significant negative impact on the Fund and its investments. Any of such circumstances could have a materially negative impact
on the value of the Fund’s shares, the liquidity of an investment, and may result in increased market volatility. During any such
events, the Fund’s shares may trade at increased premiums or discounts to their net asset value, the bid/ask spread on the Fund’s
shares may widen and the returns on investment may fluctuate.
|
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| Non U S Securities And Currency Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Non-U.S.
Securities and Currency Risk. Investing in securities of non-U.S. issuers may involve certain risks
not typically associated with investing in securities of U.S. issuers. These risks include: (i) there may be less publicly available information
about non-U.S. issuers or markets due to less rigorous disclosure or accounting standards or regulatory practices; (ii) non-U.S. markets
may be smaller, less liquid and more volatile than the U.S. market; (iii) potential adverse effects of fluctuations in currency exchange
rates or controls on the value of the Fund’s investments; (iv) the economies of non-U.S. countries may grow at slower rates than
expected or may experience a downturn or recession; (v) the impact of economic, political, social or diplomatic events as well as of foreign
governmental laws or restrictions and differing legal standards; (vi) certain non-U.S. countries may impose restrictions on the ability
of non-U.S. issuers to make payments of principal and interest to investors located in the United States due to blockage of non-U.S. currency
exchanges or otherwise; and (vii) withholding and other non-U.S. taxes may decrease the Fund’s return. Foreign companies are generally
not subject to the same accounting, auditing and financial reporting standards as are U.S. companies. In addition, there may be difficulty
in obtaining or enforcing a court judgment abroad, including in the event the issuer of a non-U.S. security defaults or enters bankruptcy
administration or other proceedings. These risks may be more pronounced to the extent that the Fund invests a significant amount of its
assets in companies located in one region or in emerging markets. Because the Fund may invest in securities denominated or quoted in non-U.S.
currencies, changes in the non-U.S. currency/United States dollar exchange rate may affect the value
of the Fund’s securities and the unrealized appreciation or depreciation of investments. While certain of the Fund’s non-U.S.
dollar-denominated securities may be hedged into U.S. dollars, hedging may not alleviate all currency risks.
Recent
developments in relations between the U.S. and China had heightened concerns of increased tariffs and restrictions on trade between the
two countries. An increase in tariffs or trade restrictions, or even the threat of such developments, could lead to a significant reduction
in international trade, which could have a negative impact on global markets, including the economy of Asian countries, and a commensurately
negative impact on the Fund.
|
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| Operational Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Operational
Risk. The Fund is subject to risks arising from various operational factors, including, but not limited
to, human error, processing and communication errors, errors of the Fund’s service providers, counterparties or other third-parties,
failed or inadequate processes and technology or systems failures. The Fund relies on third parties for a range of services, including
custody. Any delay or failure relating to engaging or maintaining such service providers may affect the Fund’s ability to
meet its investment objective. Although the Fund and the Advisor seek to reduce these operational risks through controls and procedures,
there is no way to completely protect against such risks.
|
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| Potential Conflicts Of Interest Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Potential
Conflicts of Interest Risk. First Trust, abrdn Inc. (“abrdn”) and the portfolio managers
have interests which may conflict with the interests of the Fund. In particular, First Trust and abrdn currently manage and may in the
future manage and/or advise other investment funds or accounts with the same or substantially similar investment objectives and strategies
as the Fund. In addition, while the Fund is using leverage, the amount of the fees paid to First Trust (and by First Trust to abrdn) for
investment advisory and management services are higher than if the Fund did not use leverage because the fees paid are calculated based
on managed assets. Therefore, First Trust and abrdn have a financial incentive to leverage the Fund.
|
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| Reorganization Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Reorganization
Risk. The Board of Trustees of the Fund has approved the reorganization of the Fund into abrdn Income
Credit Strategies Fund (“ACP”). If approved by shareholders, the transaction is anticipated to be consummated during
2024, subject to the satisfaction of applicable regulatory requirements and approvals and customary closing conditions. There is
no assurance when or whether such approvals, or any other approvals required for the transaction, will be obtained. Under the terms
of the proposed transaction, shareholders of the Fund would receive shares of ACP, which will have its own investment strategies and be
managed by abrdn Investments Limited and sub-advised by abrdn Inc., and thereafter cease to be a shareholder of the Fund. More information
on the proposed transaction, including the risks and considerations associated with the transaction as well as the risks of investing
in ACP, are available at https://www.ftportfolios.com/LoadContent/gohdcqj3gy3y.
|
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| Valuation Risk [Member] | |||||||||||||||||||||||||
| General Description of Registrant [Abstract] | |||||||||||||||||||||||||
| Risk [Text Block] | Valuation
Risk. Unlike publicly traded common stock which trades on national exchanges, there is no central place
or exchange for certain debt securities trading. Debt securities generally trade on an “over-the-counter” market which may
be anywhere in the world where the buyer and seller can settle on a price. Due to the lack of centralized information and trading, the
valuation of certain debt securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial market,
unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing.
|
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