FAM First Trust abrdn Global Opportunity Income Fund

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

Semi-Annual Letter from the Chairman and CEO

June 30, 2021

Dear Shareholders,

First Trust is pleased to provide you with the semi-annual report for the First Trust/Aberdeen Global Opportunity Income Fund (the “Fund”), which contains detailed information about the Fund for the six months ended June 30, 2021.

Since December of 2008, the Federal Reserve (the “Fed”) has largely maintained an extremely accommodating stance on monetary policy. In other words, it has kept interest rates at very low levels, and has done so on purpose. From December 2008 through June 2021 (a period that captured a portion of the financial crisis of 2007-2008 and the entire coronavirus (“COVID-19”) pandemic), the Federal Funds target rate (upper bound) stood at 0.25% for approximately eight years and three months of that 12.5-year period. That is an aggressive posture to hold for such a long duration. For comparative purposes, the Federal Funds target rate averaged 4.50% for the 20-year period ended December 31, 2008. All along, the Fed has been signaling to savers, investors, and businesses alike that it wanted them to assume more risk. The Fed did not want money just sitting idle on the sidelines. It wanted the money to be put to work, so to speak, in such a way that it would stimulate U.S. economic growth and stave off any deflationary pressures potentially looming. It has been a tough road to hoe, as I’m sure those investors who follow the economy closely have noticed.

Why am I taking this trip down memory lane? It is because the Federal Funds target rate currently stands at 0.25%, just like it did back in December 2008. We can cite the severe hit to many parts of the U.S. economy from the COVID-19 pandemic, such as the leisure and travel industry, as to why the target rate has returned to such a low level. For all intents and purposes, until the economy reaches full employment (4% unemployment rate) and a 2% plus inflation rate for a sustained period, the Fed has stated that it intends to maintain the status quo. Since inflation has risen notably in recent months, the Fed is now forecasting a couple of rate hikes in 2023. At a minimum, that is still 18 months away. Keep in mind, however, the Fed reserves the right to change its posture at any time.

As previously noted, the Fed has been encouraging savers and investors to assume more risk for over a decade. One of the best barometers of risk in the securities markets is the default rate on speculative-grade (below investment-grade) debt, in my opinion. High yield corporate bonds behave like a hybrid security between other fixed-income securities and stocks. They share behavioral characteristics of both, and they are economically sensitive. Moody’s reported that its global speculative-grade default rate stood at 4.0% in June 2021, according to its own release. Moody’s puts the historical average default rate at 4.2%. Its baseline scenario sees the default rate declining to 1.7% by December 2021. Moody’s recorded 28 defaults over the first six months of 2021, down from 114 defaults over the same period a year ago. I believe that investors should take some comfort in knowing that defaults are trending lower, not higher, in the current economic climate.

Companies have heeded the Fed’s call for risk-taking, as measured by this year’s robust global mergers and acquisitions (“M&A”) activity. Global M&A activity set a record high in the first half of 2021, with announced deals valued at $2.8 trillion, according to data from Refinitiv. U.S. M&A activity also reached a record high, coming in at $1.3 trillion for the same period, or around 46% of the global total. M&A specialists expect deal-making to remain robust for the rest of 2021, due to low borrowing costs and stronger economic growth.

In closing, we welcome the reopening of the U.S. economy and, hopefully, the global economy shortly thereafter. We encourage investors to stay the course even though the markets could experience some turbulence in the months ahead. The potential for additional volatility represents an opportunity for investors to check their asset allocation levels to determine if they are suitable for an extended inflationary climate.

Thank you for giving First Trust the opportunity to play a role in your financial future. We value our relationship with you and will report on the Fund again in six months.

Sincerely,

James A. Bowen

Chairman of the Board of Trustees

Chief Executive Officer of First Trust Advisors L.P.

Page 1

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

“AT A GLANCE”

As of June 30, 2021 (Unaudited)

Fund Allocation	% of Net Assets
Foreign Sovereign Bonds and Notes	96.6%
Foreign Corporate Bonds and Notes	26.6
U.S. Government Bonds and Notes	12.5
Outstanding Loans	(39.7)
Net Other Assets and Liabilities(5)	4.0
Total	100.0%

    

(1)	Most recent distribution paid or declared through June 30, 2021. Subject to change in the future.

(2)	Distribution rates are calculated by annualizing the most recent distribution paid or declared through the report date and then dividing by Common Share Price or NAV, as applicable, as of June 30, 2021. 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.

Page 2

Portfolio Commentary

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

Semi-Annual Report

June 30, 2021 (Unaudited)

Advisor

First Trust Advisors L.P. (“First Trust” or the “Advisor”) serves as the investment advisor to the First Trust/Aberdeen Global Opportunity Income Fund (the “Fund”). First Trust is responsible for the ongoing monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain administrative services necessary for the management of the Fund.

Sub-Advisor

Aberdeen Standard Investments Inc. (“ASII” or the “Sub-Advisor”), a Securities and Exchange Commission registered investment advisor, is an indirect wholly-owned subsidiary of Standard Life Aberdeen plc. Standard Life Aberdeen 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.

Portfolio Management Team

Investment decisions for the Fund are made by ASII using a team approach and not by any one individual. By making team decisions, ASII seeks to ensure that the investment process results in consistent returns across all portfolios with similar objectives. ASII does not employ separate research analysts. Instead, ASII’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 ASII invests. Below are the members of the team with significant responsibility for the day-to-day management of the Fund’s portfolio.

James Athey

Senior Investment Manager, Global Macro

Brett Diment

Head of Global Emerging Market Debt

Kevin Daly

Senior Investment Manager, Emerging Market Debt

Edwin Gutierrez

Head of Emerging Market Sovereign Debt

Max Wolman

Senior Investment Manager, Emerging Market Debt

Patrick O’Donnell

Senior Investment Manager, Global Macro and Pan Euro

Commentary

First Trust/Aberdeen Global Opportunity Income Fund

The Fund’s primary investment objective is to seek a high level of current income. As a secondary objective, the Fund seeks capital appreciation. The Fund pursues these objectives by investing its Managed Assets in the world bond markets through a diversified portfolio of investment grade and below-investment grade government and corporate debt securities. “Managed Assets” means the total asset value of the Fund minus the sum of the Fund’s liabilities other than the principal amount of borrowings, if any. There can be no assurance that Fund will achieve its investment objectives. The Fund may not be appropriate for all investors.

Page 4

Portfolio Commentary (Continued)

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

Semi-Annual Report

June 30, 2021 (Unaudited)

Fund Recap

The Fund had a net asset value (“NAV”) total return¹ of -2.60% and a market value total return of 1.70% for the six-month period ended June 30, 2021, compared to the Blended Index² total return of -2.77% over the same period. In addition to this Blended Index, the Fund currently uses other indexes for comparative purposes. The total returns for the six-month period ended June 30, 2021 for these indexes were as follows: the Bloomberg Barclays Global Emerging Markets Index was -0.97% and the Bloomberg Barclays Global Aggregate Index was -3.21%.

An important factor impacting the return of the Fund relative to its benchmarks was the Fund’s use of financial leverage through the use of bank borrowings. The Fund uses leverage because its managers believe that, over time, leverage provides opportunities for additional income and total return for common shareholders. However, the use of leverage can also expose common shareholders to additional volatility. For example, as the prices of securities held by the Fund decline, the negative impact of the evaluation changes on Common Share NAV and Common Share market value total return is magnified by the use of leverage. Conversely, leverage may enhance Common Share returns during periods when the prices of securities held by the Fund generally are rising. Unlike the Fund, the Bloomberg Barclays Global Emerging Markets Index, Bloomberg Barclays Global Aggregate Index and the components of the Blended Index are not leveraged. Leverage had a negative impact on the performance of the Fund over this reporting period.

Emerging Market Fixed Income Commentary

Market Recap

During the six-month period ended June 30, 2021, economic growth forecasts for the global economy continued to rise as economists believe the worst of the pandemic is finally behind us due to the rollout of the various vaccines for the coronavirus (“COVID-19”). The market has anticipated higher inflation, although how transient it will be, remains a topic of vigorous discussion and the resulting turbulence and volatility in U.S. interest rates. At the start of 2021, the U.S. 10-Year Treasury was around 0.9% and rose to hit a high of 1.74% at the end of March 2021 but then finished the first half of 2021 at 1.47%. Ultimately, the higher U.S. rates had a detrimental effect on Emerging Markets (“EM”) debt which had a negative return for the period in both hard currency and local markets. Although during the period there were some standout performing credits such as Ecuador, other markets such as Peru and Turkey local bonds were poor performers. Over the same period, the high yield EM debt market outperformed the investment grade component as it has less interest rate risk and more idiosyncratic stories which performed well such as Angola which benefitted from the rally in commodity prices, in particular crude oil which was up nearly 50%.

The hard currency index returns were -1.47%, while the local market returns were -2.3%, which was due to negative returns from both EM Foreign Exchange and EM central banks raising interest rates. Interestingly there has been a significant divergence in monetary policy between developed and developing central banks as the likes of the Federal Reserve (the “Fed”), the European Central Bank (“ECB”) and the Bank of England have all maintained very loose monetary policy. However, in EMs we have seen a large number of central banks tightening monetary policy by raising interest rates, such as Brazil, who raised the Selic from 2% to 4.25%, and Russia, who raised rates from 4.25% to 5.5%. This was due to rising levels of inflation driven partly by higher wages but also by higher commodity prices which have a larger impact on the Consumer Price Index than in the developed world.

Performance Analysis

Returns for the emerging market fixed income portion of the Fund were negative for the six-month period ended June 30, 2021, although it outperformed the Blended Index. This was due in part to an overweight to hard currency bonds which has a stronger performance than local market bonds.

Local market bonds suffered from foreign exchange weakness over the same period, in addition to monetary tightening from various central banks which resulted in domestic yields rising.

The Fund sold its holdings in Turkish local bonds which resulted in a strong performance against the Blended Index given rising concerns over the future of the central bank independence after the Turkish governor was sacked by Turkish President Erdogan in April. Performance in South African local bonds was also strong as the Fund held long duration bonds which benefitted the most

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. Past performance is not indicative of future results.

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 the 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 the period shown above, giving the performance for the Blended Index for the period shown above.

Page 5

Portfolio Commentary (Continued)

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

Semi-Annual Report

June 30, 2021 (Unaudited)

under the South African President Zuma’s perceived containment and reduction in corruption which has had negative consequences on the country for the years under Zuma’s presidency. Holdings in off benchmark Egyptian and Dominican Republic domestic bonds also added to performance given the high yields the bonds offered and stable currencies from both countries.

The Fund’s short duration position helped the Fund to outperform its hard currency benchmark as U.S. Treasuries sold off during the period, while overweight holdings in high yield credits added to performance. Examples include Angola, Oman, and Iraq, which all performed well over the same period due to the recovery in oil prices. Off benchmark holdings in a number of corporates, such as Seplat in Nigeria and Akbank in Turkey, were also a positive contributor to the Fund’s performance. Being overweight Ukraine and holding corporate bonds added to the Fund’s performance as a number of the corporate bonds now trade at a lower yield than the sovereign highlighting their strong credit fundamentals and their performance. One country which detracted from the Fund’s performance was Argentina given the lack of reforms and limited progress with the International Monetary Fund on how Argentina intends to repay the $45 billion it owes them. On a more positive note, the overweight to Ecuador was a plus for the Fund as the country was the top performing credit due to the surprise Presidential election result with the market friendly candidate winning. An overweight to Belarus detracted from performance as both the European Union (“EU”) and the U.S. slapped sanctions on the country after President Lukashenko forced a commercial airline to land in the capital city of Minsk allowing Belarussian security forces to arrest a dissident journalist who is opposed to the President’s authoritarian rule.

As the Fund has leverage, this had a negative effect on the Fund’s performance during the same period as the market returns were negative.

Market and Fund Outlook

We expect the global economic recovery to gain momentum in the second half of 2021 led by developed Asia and the U.S., with Europe catching up as the vaccination rollout gathers pace and Latin America follows behind. We expect fiscal and monetary policy to remain supportive for emerging-market assets, although policymakers are beginning to communicate normalisation plans. Meanwhile, proof of the “transitory” nature of inflation would be a trigger for strong asset performance. The risks to our outlook include a hawkish Fed leading to rising U.S. Treasury yields and sustained U.S. Dollar strength, as well as the risk of economies reopening too soon and resulting in a global pickup in infection rates.

Developed Market Commentary

Market Recap

Reading the equivalent commentary for the Fund for 2020, it is striking how similar the first halves in the two years have been – just with the sequencing reversed. This was once again a half of two-halves as the first quarter of 2021 was dominated by risk-on, pro-cyclical euphoria while the second quarter was nervier and more circumspect with some familiar old concerns resurfacing.

On the whole, the first half of 2021 saw strong performance from risk assets, commodities and non-dollar foreign exchange as the gargantuan monetary and fiscal stimulus provided in response to the pandemic worked their way through the system and into investor psychology.

During the six-month period ended June 30, 2021, the U.S. 10-Year Treasury yields rose by around 50 basis points (“bps”) from their year-end level as investors shifted their focus into cyclical assets anticipating a strong recovery boosted by the newly minted Democratic Administration and its fine margins in both houses of Congress.

As we moved through the six-month period and vaccination rates picked up significantly in the U.S., this view only got stronger and more entrenched and as investors sought to hedge inflation risk by buying commodities which only served to push inflation and inflation expectations higher still leading to a self-fulfilling prophecy. A similar dynamic emerged in global foreign exchange as dollar weakness, driven by the market’s belief that U.S. Dollar inflation would run rampant without a commensurate monetary tightening, saw upward pressure on global commodity markets and commodity exposed currencies thus feeding back into the cyclical narrative.

While the laws of financial markets are not as reliable as the fundamental laws of physics, that’s not to say that they don’t exist. Eventually that which is unsustainable shall not be sustained. And so it was with some of the market euphoria which gave way to increasing concerns around virus spread, growth and the shifting winds of economic policy. This saw a bid for the U.S. Dollar emerge, the bid for treasuries return with increasing ferocity and ultimately saw investors having to consider a far less rosy outlook for the second half of 2021 and beyond.

Outside of the U.S., the paths being trodden were remarkably similar. Dollar bloc markets followed treasuries in pricing a strong and inflationary future only to collapse under the weight of their own positioning such that the net journey over the first half of the period

Page 6

Portfolio Commentary (Continued)

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

Semi-Annual Report

June 30, 2021 (Unaudited)

was certainly towards higher yields and stronger real/cyclical assets, but the magnitude of the move looked far less of a game changer come the end of June 2021.

As is often the case, Europe has lagged at just about every stage. The vaccination effort was delayed, disjointed, and mired in politics and by the time vaccination rates were catching up to the likes of the U.S. and the United Kingdom, the governments in Europe were getting itchy and began to open up their economies before there was robust evidence that virus spread was under control. Meanwhile the ECB remains trapped in a mire largely of its own making. Bond markets are so thoroughly addicted to ECB largesse that economics no longer play a role in setting ECB policy. The game is merely to keep the plates spinning for as long as possible. The hoped-for handover of this support from monetary to fiscal policy for now remains a pipe dream despite the eventual passing of the Recovery and Resilience Facility legislation which now permits the EU to raise funds directly from the market to be distributed to member nations in the coming months and years.

Europe’s delayed vaccination program thus saw German 10-Year yields playing catch up through the second quarter of 2021 and thus they underperformed treasuries over the first half of 2021, in total rising by over 40 bps. Italian yields outperformed slightly but with valuations there leaving no margin for error and the ECBs uber-dovish stance increasingly appearing anachronistic we see significant risks there.

Performance Analysis

The developed markets portion of the Fund returned -3.05% during the six-month period ended June 30, 2021 against a Blended Benchmark return of -4.70%, thus generating an outperformance of 1.65%.

The Fund’s short exposure to Eurozone sovereigns was by some margin the single biggest contributor to outperformance as yields there rose and the currency weakened deriving portfolio performance gains from both bond and foreign exchange positioning. The largest gains came from short positions in France and Germany.

Elsewhere, the Fund benefitted from owning a short duration bond in Canada where yields rose, and the curve steepened and an overweight in New Zealand where yields rose, but the currency significantly appreciated driving gains from foreign exchange exposure.

The main performance negatives for the Fund over the same period were from long dated long duration exposures in Australia and the U.S. where yields rose most significantly.

Duration length was reduced towards the end of the same period via sales of long dated U.S. Treasuries taking advantage of the significant yield decline in the second quarter there. Underweight positioning in the Eurozone was also reduced via a purchase of 30-Year German bunds.

Market and Fund Outlook

We are less surprised than other commentators by the shifting macroeconomic outlook and decline in yields. We have long argued that the market euphoria was entirely reliant on unsustainable drivers and that the post-COVID-19 world would look far less different than the pre-COVID-19 world than was being suggested. With even more debt piled into the system, we believe it is simply unsustainable to get materially higher yields for any period.

That being said, yields do look more appropriately priced now, yet we see the same lofty valuations are persisting in equity markets which are a clear and present danger to bond yields even at these levels.

With positioning now likely a lot cleaner and with gross domestic product data set to continue pointing towards a strong recovery, we expect the next phase for markets to be dealing with the Fed’s journey towards taper. All eyes will be on the Jackson Hole Economic Symposium at the end of August 2021 where many participants expect the Fed to more strongly hint that a taper announcement is imminent. The impact of such an announcement is complicated to analyze as the reduction in duration buying should act to push yields higher while the hit to risk assets which is likely to accompany it would likely see a bid for safety pushing yields lower. On balance, we think a flatter yield curve is the likely result as markets reprice the front end higher in yield as they look towards the next round of monetary tightening (hikes) while the wobble in risk assets encourages further duration buying at the long end.

Page 7

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

Portfolio of Investments

June 30, 2021 (Unaudited)

Principal Value (Local Currency)		Description		Stated Coupon		Stated Maturity		Value (US Dollars)
FOREIGN SOVEREIGN BONDS AND NOTES (a) – 96.6%
		Angola – 1.2%
1,160,000		Angolan Government International Bond (USD) (b)		9.50%		11/12/25		$1,272,996
		Argentina – 2.1%
383,926		Argentine Republic Government International Bond (USD)		1.00%		07/09/29		146,353
1,920,432		Argentine Republic Government International Bond (USD) (c)		0.13%		07/09/30		695,196
4,314,772		Argentine Republic Government International Bond (USD) (c)		0.13%		07/09/35		1,376,455
								2,218,004
		Australia – 4.8%
7,000,000		Treasury Corp. of Victoria (AUD)		1.50%		11/20/30		5,149,760
		Bahamas – 1.6%
1,500,000		Bahamas Government International Bond (USD) (d)		8.95%		10/15/32		1,706,250
		Bahrain – 1.0%
1,050,000		Bahrain Government International Bond (USD) (d)		4.25%		01/25/28		1,053,107
		Belarus – 1.3%
500,000		Republic of Belarus International Bond (USD) (b)		5.88%		02/24/26		463,925
1,100,000		Republic of Belarus International Bond (USD) (b)		6.38%		02/24/31		957,440
								1,421,365
		Benin – 0.3%
279,000		Benin Government International Bond (EUR) (d)		6.88%		01/19/52		345,365
		Brazil – 5.3%
7,030,000		Brazil Notas do Tesouro Nacional, Series F (BRL)		10.00%		01/01/25		1,498,264
19,300,000		Brazil Notas do Tesouro Nacional, Series F (BRL)		10.00%		01/01/29		4,149,460
								5,647,724
		Canada – 5.1%
5,881,000		Canadian Government Bond (CAD)		8.00%		06/01/23		5,425,204
		Dominican Republic – 0.7%
770,000		Dominican Republic International Bond (USD) (b)		5.88%		01/30/60		771,933
		Ecuador – 1.0%
763,820		Ecuador Government International Bond (USD) (c) (d)		0.50%		07/31/30		654,983
725,460		Ecuador Government International Bond (USD) (c) (d)		0.50%		07/31/40		452,506
								1,107,489
		Egypt – 3.3%
22,490,000		Egypt Government Bond (EGP)		14.48%		04/06/26		1,435,070
380,000		Egypt Government International Bond (USD) (d)		8.50%		01/31/47		397,262
1,730,000		Egypt Government International Bond (USD) (d)		7.90%		02/21/48		1,717,492
								3,549,824
		El Salvador – 0.8%
580,000		El Salvador Government International Bond (USD) (b)		5.88%		01/30/25		537,950
294,000		El Salvador Government International Bond (USD) (d)		9.50%		07/15/52		290,325
								828,275
		Georgia – 0.7%
758,000		Georgia Government International Bond (USD) (d)		2.75%		04/22/26		773,221
		Germany – 3.2%
3,181,000		Bundesrepublik Deutschland Bundesanleihe (EUR) (b)		(e)		08/15/50		3,468,773

Page 8

See Notes to Financial Statements

See Notes to Financial Statements

Page 9

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

Portfolio of Investments (Continued)

June 30, 2021 (Unaudited)

Principal Value (Local Currency)		Description		Stated Coupon		Stated Maturity		Value (US Dollars)
FOREIGN SOVEREIGN BONDS AND NOTES (a) (Continued)
		Russia (Continued)
50,000,000		Russian Federal Bond - OFZ (RUB)		7.70%		03/23/33		$717,333
								10,317,387
		Saudi Arabia – 1.1%
1,045,000		Saudi Government International Bond (USD) (d)		4.38%		04/16/29		1,212,024
		South Africa – 4.9%
84,450,000		Republic of South Africa Government Bond (ZAR)		9.00%		01/31/40		5,199,372
		Ukraine – 1.9%
550,000		Ukraine Government International Bond (EUR) (d)		6.75%		06/20/26		713,081
490,000		Ukraine Government International Bond (USD) (b)		7.38%		09/25/32		516,524
716,000		Ukraine Government International Bond (USD) (d)		1.26%		05/31/40		851,317
								2,080,922
		United Kingdom – 4.1%
900,000		United Kingdom Gilt (GBP) (b)		6.00%		12/07/28		1,735,859
1,095,000		United Kingdom Gilt (GBP) (b)		4.25%		12/07/49		2,615,607
								4,351,466
		Uzbekistan – 0.6%
623,000		Republic of Uzbekistan Bond (USD) (d)		3.70%		11/25/30		622,171
		Total Foreign Sovereign Bonds and Notes						103,438,813
		(Cost $104,409,177)
FOREIGN CORPORATE BONDS AND NOTES (a) (f) – 26.6%
		Barbados – 0.7%
750,000		Sagicor Financial Co., Ltd. (USD) (d)		5.30%		05/13/28		778,125
		Brazil – 3.8%
440,000		Banco do Brasil S.A. (USD) (b) (g)		6.25%		(h)		449,799
227,000		BRF S.A. (USD) (b)		4.88%		01/24/30		238,664
228,000		BRF S.A. (USD) (d)		5.75%		09/21/50		234,636
449,000		CSN Resources S.A. (USD) (d)		7.63%		02/13/23		467,274
220,000		CSN Resources S.A. (USD) (b)		7.63%		04/17/26		237,532
650,000		GTL Trade Finance, Inc. (USD) (b)		7.25%		04/16/44		893,789
430,243		Guara Norte Sarl (USD) (d)		5.20%		06/15/34		449,088
500,000		Itau Unibanco Holding S.A. (USD) (b) (g)		4.63%		(h)		482,255
1,550,000		OAS Finance Ltd. (USD) (g) (i) (j) (k)		8.88%		(h)		11,625
460,000		OAS Investments GmbH (USD) (i) (j) (k)		8.25%		10/19/19		3,450
30,020		Odebrecht Drilling Norbe VIII/IX Ltd. (USD) (b)		6.35%		12/01/21		29,870
556,000		Petrobras Global Finance BV (USD)		5.60%		01/03/31		623,610
								4,121,592
		China – 1.3%
450,000		China Evergrande Group (USD) (b)		11.50%		01/22/23		360,005
620,000		Kaisa Group Holdings Ltd. (USD) (b)		11.25%		04/16/25		587,473
400,000		Zhenro Properties Group Ltd. (USD) (b)		9.15%		05/06/23		417,012
								1,364,490
		Dominican Republic – 0.8%
491,000		AES Andres BV (USD) (d)		5.70%		05/04/28		509,412
364,500		Empresa Generadora de Electricidad Itabo S.A. (USD) (d)		7.95%		05/11/26		377,582
								886,994

Page 10

See Notes to Financial Statements

See Notes to Financial Statements

Page 11

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

Portfolio of Investments (Continued)

June 30, 2021 (Unaudited)

Principal Value (Local Currency)		Description		Stated Coupon		Stated Maturity		Value (US Dollars)
FOREIGN CORPORATE BONDS AND NOTES (a) (f) (Continued)
		Tanzania – 0.4%
452,000		HTA Group Ltd. (USD) (d)		7.00%		12/18/25		$482,686
		Trinidad And Tobago – 0.8%
820,000		Trinidad Generation UnLtd. (USD) (b)		5.25%		11/04/27		847,745
		Turkey – 1.6%
500,000		Akbank T.A.S. (USD) (b) (g)		7.20%		03/16/27		508,750
490,000		Hazine Mustesarligi Varlik Kiralama AS (USD) (d)		5.13%		06/22/26		490,162
740,000		TC Ziraat Bankasi AS (USD) (d)		5.38%		03/02/26		729,825
								1,728,737
		Ukraine – 1.5%
467,000		Kernel Holding S.A. (USD) (d)		6.75%		10/27/27		508,271
570,000		Metinvest BV (USD) (d)		8.50%		04/23/26		651,040
460,000		Ukraine Railways Via Rail Capital Markets PLC (USD) (b)		8.25%		07/09/24		485,645
								1,644,956
		United Arab Emirates – 0.5%
480,000		MAF Global Securities Ltd. (USD) (b) (g)		5.50%		(h)		495,154
		Zambia – 0.5%
490,000		First Quantum Minerals Ltd. (USD) (b)		7.50%		04/01/25		509,666
		Total Foreign Corporate Bonds and Notes						28,528,138
		(Cost $29,163,429)
Principal Value		Description		Stated Coupon		Stated Maturity		Value
U.S. GOVERNMENT BONDS AND NOTES (a) – 12.5%
$12,405,200		United States Treasury Note		2.38%		05/15/29		13,398,343
		(Cost $12,851,882)

    

	Total Investments – 135.7%		145,365,294
	(Cost $146,424,488) (l)
	Outstanding Loans – (39.7)%		(42,540,555)
	Net Other Assets and Liabilities – 4.0%		4,264,188
	Net Assets – 100.0%		$107,088,927

    

Page 12

See Notes to Financial Statements

See Notes to Financial Statements

Page 17

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

Statements of Changes in Net Assets

	Six Months Ended 6/30/2021 (Unaudited)		Year Ended 12/31/2020
OPERATIONS:
Net investment income (loss)	$ 2,423,080		$ 5,775,186
Net realized gain (loss)	2,529,401		(1,761,839)
Net increase from payment by the sub-advisor	4,120		—
Net change in unrealized appreciation (depreciation)	(9,420,975)		930,830
Net increase (decrease) in net assets resulting from operations	(4,464,374)		4,944,177
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations	(5,271,151)		(5,330,858)
Return of capital	—		(6,874,992)
Total distributions to shareholders	(5,271,151)		(12,205,850)
CAPITAL TRANSACTIONS:
Purchase of Common Shares pursuant to a tender offer	(27,269,081)		—
Repurchase of Common Shares	—		(798,780)
Net increase (decrease) in net assets resulting from capital transactions	(27,269,081)		(798,780)
Total increase (decrease) in net assets	(37,004,606)		(8,060,453)
NET ASSETS:
Beginning of period	144,093,533		152,153,986
End of period	$ 107,088,927		$ 144,093,533
CAPITAL TRANSACTIONS were as follows:
Common Shares at beginning of period	12,671,036		12,756,442
Common Shares purchased pursuant to a tender offer (a)	(2,534,207)		—
Common Shares repurchased (b)	—		(85,406)
Common Shares at end of period	10,136,829		12,671,036

    

(a)

On January 14, 2021, the Fund commenced a tender offer for up to 20% of its outstanding common shares for cash at a price per share equal to 98% of the net asset value per share determined as of the close of the regular trading session of the NYSE on February 16, 2021 (the “Valuation Date”). The Fund’s tender offer expired at 5:00 p.m. New York City time on Friday, February 12, 2021. Because the Fund’s tender offer was oversubscribed, the Fund repurchased 2,534,207 (20%) of its outstanding common shares on a pro-rata basis based on the number of shares properly tendered.

(b)

On September 15, 2015, the Fund commenced a Share repurchase program. The program originally expired on March 15, 2016, but the Board of Trustees of the Fund has subsequently authorized the continuation of the Fund’s share repurchase program until March 15, 2021. During the fiscal year ended December 31, 2020, the Fund repurchased 85,406 shares at a weighted-average discount of 11.00% from net asset value per share. The Fund had no repurchases for the six-months ended June 30, 2021. The Fund’s Share repurchase program ended on March 15, 2021.

Page 18

See Notes to Financial Statements

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

Statement of Cash Flows

For the Six Months Ended June 30, 2021 (Unaudited)

Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$(4,464,374)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:
Purchases of investments	(55,933,074)
Sales, maturities and paydown of investments	97,555,698
Net amortization/accretion of premiums/discounts on investments	79,945
Net realized gain/loss on investments	(2,940,989)
Net change in unrealized appreciation/depreciation on investments	9,887,350
Net change in unrealized appreciation/depreciation on forward foreign currency contracts	(710,965)
Net increase from payment by the sub-advisor	(4,120)
Changes in assets and liabilities:
Decrease in interest receivable	717,983
Increase in interest reclaims receivable	(14,055)
Increase in due from broker	(113,079)
Increase in prepaid expenses	(14,712)
Increase in interest and fees payable on loans	29,768
Decrease in due to broker	(254,517)
Decrease in investment advisory fees payable	(42,816)
Decrease in audit and tax fees payable	(17,070)
Increase in legal fees payable	11,084
Decrease in shareholder reporting fees payable	(3,561)
Increase in administrative fees payable	5,158
Increase in custodian fees payable	29,457
Decrease in transfer agent fees payable	(551)
Increase in trustees’ fees and expenses payable	3,930
Decrease in deferred foreign capital gains tax	(48,065)
Decrease in other liabilities payable	(1,429)
Cash provided by operating activities		$43,756,996
Cash flows from financing activities:
Distributions to Common Shareholders from investment operations	(5,271,151)
Repayment of borrowings	(10,697,532)
Purchase of Common Shares pursuant to a tender offer	(27,269,081)
Effect of exchange rate changes on Euro Loans (a)	(275,964)
Cash used in financing activities		(43,513,728)
Increase in cash and foreign currency (b)		243,268
Cash and foreign currency at beginning of period		2,168,752
Cash and foreign currency at end of period		$2,412,020
Supplemental disclosure of cash flow information:
Cash paid during the period for interest and fees		$214,082

    

(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 $(568,619), which does not include the effect of exchange rate changes on Euro borrowings.

See Notes to Financial Statements

Page 19

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

Financial Highlights

For a Common Share outstanding throughout each period

	Six Months Ended 6/30/2021 (Unaudited)		Year Ended December 31,
			2020		2019		2018		2017		2016
Net asset value, beginning of period	$ 11.37		$ 11.93		$ 11.07		$ 12.94		$ 12.07		$ 11.66
Income from investment operations:
Net investment income (loss)	0.16		0.45		0.65		0.69		0.72		0.73
Net realized and unrealized gain (loss)	(0.54) (a)		(0.06)		1.09		(1.70)		0.98		0.58
Total from investment operations	(0.38)		0.39		1.74		(1.01)		1.70		1.31
Distributions paid to shareholders from:
Net investment income	(0.48)		(0.42)		(0.39)		(0.54)		(0.37)		(0.43)
Return of capital	—		(0.54)		(0.49)		(0.34)		(0.53)		(0.47)
Total distributions paid to Common Shareholders	(0.48)		(0.96)		(0.88)		(0.88)		(0.90)		(0.90)
Common Share repurchases	—		0.01		0.00 (b)		0.02		—		—
Tender offer purchases	0.05		—		—		—		0.07		—
Net asset value, end of period	$10.56		$11.37		$11.93		$11.07		$12.94		$12.07
Market value, end of period	$10.24		$10.55		$11.19		$9.38		$11.66		$11.16
Total return based on net asset value (c)	(2.60)% (a)		4.84%		17.09%		(6.85)%		15.91%		12.39%
Total return based on market value (c)	1.70%		3.71%		29.74%		(12.42)%		12.88%		19.61%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)	$ 107,089		$ 144,094		$ 152,154		$ 141,376		$ 167,620		$ 208,482
Ratio of total expenses to average net assets	2.63% (d)		2.53%		2.88%		2.81%		2.52%		2.19%
Ratio of total expenses to average net assets excluding interest expense	2.21% (d)		2.00%		1.77%		1.82%		1.84%		1.71%
Ratio of net investment income (loss) to average net assets	4.20% (d)		4.13%		5.60%		5.88%		5.81%		5.93%
Portfolio turnover rate	33%		39%		42%		58%		54%		64%
Indebtedness:
Total loans outstanding (in 000’s)	$ 42,541		$ 53,514		$ 60,572		$ 60,799		$ 63,309		$ 82,421
Asset coverage per $1,000 of indebtedness (e)	$ 3,517		$ 3,693		$ 3,512		$ 3,325		$ 3,648		$ 3,529

    

(a)	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.
(b)	Amount is less than $0.01.
(c)	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.
(d)	Annualized.
(e)	Calculated by subtracting the Fund’s total liabilities (not including the loans outstanding) from the Fund’s total assets, and dividing by the outstanding loans balance in 000’s.

Page 20

See Notes to Financial Statements

Notes to Financial Statements (Continued)

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

June 30, 2021 (Unaudited)

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.

Forward foreign currency contracts are fair valued at the current day’s interpolated foreign exchange rate, as calculated using the current day’s spot rate, and the thirty, sixty, ninety, and one-hundred eighty day forward rates provided by a third-party pricing service.

Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Fund’s Board of Trustees or its delegate, the Advisor’s Pricing Committee, at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended (the “1933 Act”)) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of the Fund’s NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security’s fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following:

1)	the fundamental business data relating to the issuer, or economic data relating to the country of issue;
2)	an evaluation of the forces which influence the market in which these securities are purchased and sold;
3)	the type, size and cost of the security;
4)	the financial statements of the issuer, or the financial condition of the country of issue;
5)	the credit quality and cash flow of the issuer, or country of issue, based on Aberdeen Standard Investments Inc.’s (“ASII” or the “Sub-Advisor”) or external analysis;
6)	the information as to any transactions in or offers for the security;
7)	the price and extent of public trading in similar securities (or equity securities) of the issuer/borrower, or comparable companies;
8)	the coupon payments;
9)	the quality, value and salability of collateral, if any, securing the security;
10)	the business prospects of the issuer, including any ability to obtain money or resources from a parent or affiliate and an assessment of the issuer’s management (for corporate debt only);
11)	the economic, political and social prospects/developments of the country of issue and the assessment of the country’s governmental leaders/officials (for sovereign debt only);
12)	the prospects for the issuer’s industry, and multiples (of earnings and/or cash flows) being paid for similar businesses in that industry (for corporate debt only); and
13)	other relevant factors.

The Fund is subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:

•	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.

Page 22

Notes to Financial Statements (Continued)

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

June 30, 2021 (Unaudited)

•	Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value the Fund’s investments as of June 30, 2021, is included with the Fund’s Portfolio of Investments.

B. Security Transactions and Investment Income

Security transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Interest income is recorded on the accrual basis. Amortization of premiums and accretion of discounts are recorded by using the effective interest method.

The United Kingdom’s Financial Conduct Authority, which regulates the London Interbank Offered Rates (“LIBOR”), announced on March 5, 2021 that all non-USD LIBOR reference rates and the 1-week and 2-month USD LIBOR reference rates will cease to be provided or no longer be representative immediately after December 31, 2021 and the remaining USD LIBOR settings will cease to be provided or no longer be representative immediately after June 30, 2023. The International Swaps and Derivatives Association, Inc. (“ISDA”) confirmed that the March 5, 2021 announcement constituted an index cessation event under the Interbank Offered Rates (“IBOR”) Fallbacks Supplement and the ISDA 2020 IBOR Fallbacks Protocol for all 35 LIBOR settings and confirmed that the spread adjustment to be used in ISDA fallbacks was fixed as of the date of the announcement.

In the United States, the Alternative Reference Rates Committee (the “ARRC”), a group of market participants convened by the Board of Governors of the Federal Reserve System and the Federal Reserve Bank of New York in cooperation with other federal and state government agencies, has since 2014 undertaken efforts to identify U.S. dollar reference interest rates as alternatives to LIBOR and to facilitate the mitigation of LIBOR-related risks. In June 2017, the ARRC identified the Secured Overnight Financing Rate (“SOFR”), a broad measure of the cost of cash overnight borrowing collateralized by U.S. Treasury securities, as the preferred alternative for U.S. dollar LIBOR. The Federal Reserve Bank of New York began daily publishing of SOFR in April 2018.

At this time, it is not possible to predict the full impact of the elimination of LIBOR and the establishment of an alternative reference rate on the Fund or its investments.

Withholding taxes and tax reclaims on foreign interest have been provided for in accordance with each Fund’s understanding of the applicable country’s tax rules and rates.

Securities purchased or sold on a when-issued, delayed-delivery or forward purchase commitment basis may have extended settlement periods. The value of the security so purchased is subject to market fluctuations during this period. The Fund maintains liquid assets with a current value at least equal to the amount of its when-issued, delayed-delivery or forward purchase commitments until payment is made. At June 30, 2021, the Fund had no when-issued, delayed-delivery or forward purchase commitments.

C. Restricted Securities

The Fund invests in restricted securities, which are securities that may not be offered for public sale without first being registered under the 1933 Act. Prior to registration, restricted securities may only be resold in transactions exempt from registration under Rule 144A under the 1933 Act, normally to qualified institutional buyers. As of June 30, 2021, the Fund held restricted securities as shown in the following table that the Sub-Advisor has deemed illiquid pursuant to procedures adopted by the Fund’s Board of Trustees. 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. The Fund does not have the right to demand that such securities be registered. These securities are valued according to the valuation procedures as stated in the Portfolio Valuation note (Note 2A) and are not expressed as a discount to the carrying value of a comparable unrestricted security. There are no unrestricted securities with the same maturity dates and yields for these issuers.

Page 23

Notes to Financial Statements (Continued)

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

June 30, 2021 (Unaudited)

D. Forward Foreign Currency Contracts

The Fund is subject to foreign currency risk in the normal course of pursuing its investment objectives. Forward foreign currency contracts are agreements between two parties (“Counterparties”) to exchange one currency for another at a future date and at a specified price. The Fund uses forward foreign currency contracts to facilitate transactions in foreign securities and to manage the Fund’s foreign currency exposure. These contracts are valued daily, and the Fund’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward rates at the reporting date, is included in “Unrealized appreciation on forward foreign currency contracts” and “Unrealized depreciation on forward foreign currency contracts” on the Statement of Assets and Liabilities. The change in unrealized appreciation (depreciation) is included in “Net change in unrealized appreciation (depreciation) on forward foreign currency contracts” on the Statement of Operations. When the forward contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or the cost of) the closing transaction and the Fund’s basis in the contract. This realized gain or loss is included in “Net realized gain (loss) on forward foreign currency contracts” on the Statement of Operations. Risks arise from the possible inability of Counterparties to meet the terms of their contracts and from movement in currency, securities values and interest rates. Due to the risks, the Fund could incur losses in excess of the net unrealized value shown on the Forward Foreign Currency Contracts table in the Portfolio of Investments. In the event of default by the Counterparty, the Fund will provide notice to the Counterparty of the Fund’s intent to convert the currency held by the Fund into the currency that the Counterparty agreed to exchange with the Fund. If a Counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, the Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. The Fund may obtain only limited recovery or may obtain no recovery in such circumstances.

E. Foreign Currency

The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at the exchange rates prevailing at the end of the period. Purchases and sales of investments and items of income and expense are translated on the respective dates of such transactions. Unrealized gains and losses on assets and liabilities, other than investments in securities, which result from changes in foreign currency exchange rates have been included in “Net change in unrealized appreciation (depreciation) on foreign currency translation” on the Statement of Operations. Unrealized gains and losses on investments in securities which result from changes in foreign exchange rates are included with fluctuations arising from changes in market price and are shown in “Net change in unrealized appreciation (depreciation) on investments” on the Statement of Operations. Net realized foreign currency gains and losses include the effect of changes in exchange rates between trade date and settlement date on investment security transactions, foreign currency transactions and interest and dividends received and are shown in “Net realized gain (loss) on foreign currency transactions” on the Statement of Operations. The portion of foreign currency gains and losses related to fluctuation in exchange rates between the initial purchase settlement date and subsequent sale trade date is included in “Net realized gain (loss) on investments” on the Statement of Operations.

F. Offsetting on the Statement of Assets and Liabilities

Offsetting assets and liabilities requires entities to disclose both gross and net information about instruments and transactions eligible for offset on the Statement of Assets and Liabilities, and disclose instruments and transactions subject to master netting or similar agreements. These disclosure requirements are intended to help investors and other financial statement users better assess the effect or potential effect of offsetting arrangements on the Fund’s financial position. The transactions subject to offsetting disclosures are derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions.

For financial reporting purposes, the Fund does not offset financial assets and financial liabilities that are subject to master netting arrangements (“MNAs”) or similar agreements on the Statement of Assets and Liabilities. MNAs provide the right, in the event of default (including bankruptcy and insolvency), for the non-defaulting counterparty to liquidate the collateral and calculate the net exposure to the defaulting party or request additional collateral.

Page 24

Notes to Financial Statements (Continued)

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

June 30, 2021 (Unaudited)

Please note that the above description is based on current provisions of Indian law, and any change or modification made by subsequent legislation, regulation, or administrative or judicial decision could increase the Indian tax liability of a Fund and thus reduce the return to a Fund’s shareholders. There can be no assurance that the Indian tax authorities and/or regulators will not take a position contrary to the views expressed herein. If the Indian tax authorities and/or regulators take a position contrary to the views expressed herein, adverse unpredictable consequences may follow.

The Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. The Fund is subject to certain limitations under the U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At December 31, 2020, the Fund had $13,637,004 non-expiring capital loss carryforwards that may be carried forward indefinitely.

Certain losses realized during the current fiscal year may be deferred and treated as occurring the first day of the following fiscal year for federal income tax purposes. For the fiscal year ended December 31, 2020, the Fund did not incur any net ordinary loss.

The Fund is subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. Taxable years ended 2017, 2018, 2019, and 2020 remain open to federal and state audit. As of June 30, 2021, management has evaluated the application of these standards to the Fund, and has determined that no provision for income tax is required in the Fund’s financial statements for uncertain tax positions.

I. Expenses

The Fund will pay all expenses directly related to its operations.

3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements

First Trust, the investment advisor to the Fund, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the ongoing monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain administrative services necessary for the management of the Fund. For these services, First Trust is entitled to a monthly fee calculated at an annual rate of 1.00% of the Fund’s Managed Assets. First Trust also provides fund reporting services to the Fund for a flat annual fee in the amount of $9,250.

ASII serves as the Fund’s sub-advisor and manages the Fund’s portfolio subject to First Trust’s supervision. The Sub-Advisor receives a monthly portfolio management fee calculated at an annual rate of 0.50% of the Fund’s Managed Assets that is paid by First Trust out of its investment advisory fee.

During the six months ended June 30, 2021, the Fund received a reimbursement from the Sub-Advisor of $4,120 in connection with a trade error.

ASII, an SEC registered investment advisor, is an indirect wholly-owned subsidiary of Standard Life Aberdeen plc. Standard Life Aberdeen 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.

BNY Mellon Investment Servicing (US) Inc. (“BNYM IS”) serves as the Fund’s transfer agent in accordance with certain fee arrangements. As transfer agent, BNYM IS is responsible for maintaining shareholder records for the Fund. The Bank of New York Mellon (“BNYM”) serves as the Fund’s administrator, fund accountant, and custodian in accordance with certain fee arrangements. As administrator and fund accountant, BNYM is responsible for providing certain administrative and accounting services to the Fund, including maintaining the Fund’s books of account, records of the Fund’s securities transactions, and certain other books and records. As custodian, BNYM is responsible for custody of the Fund’s assets. BNYM IS and BNYM are subsidiaries of The Bank of New York Mellon Corporation, a financial holding company.

Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates (“Independent Trustees”) is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a defined-outcome fund or an index fund.

Additionally, the Lead Independent Trustee and the Chairmen of the Audit Committee, Nominating and Governance Committee and Valuation Committee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in

Page 27

Notes to Financial Statements (Continued)

First Trust/Aberdeen Global Opportunity Income Fund (FAM)

June 30, 2021 (Unaudited)

connection with all meetings. The Lead Independent Trustee and Committee Chairmen rotate every three years. The officers and “Interested” Trustee receive no compensation from the Fund for acting in such capacities.

4. Purchases and Sales of Securities

The cost of purchases and proceeds from sales of investments, other than U.S. government obligations and short-term obligations, for the six months ended June 30, 2021, were $47,412,705 and $83,674,386, respectively. The cost of purchases and proceeds from sales of U.S. government obligations, for the six months ended June 30, 2021, were $6,933,657 and $11,128,344, respectively.

5. Derivative Transactions

The following table presents the type of derivatives held by the Fund at June 30, 2021, the primary underlying risk exposure and the location of these instruments as presented on the Statement of Assets and Liabilities.

The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the six months ended June 30, 2021, on derivative instruments, as well as the primary underlying risk exposure associated with each instrument.

For the six months ended June 30, 2021, the notional values of forward foreign currency contracts opened and closed were $373,657,813 and $364,283,904, respectively.

Effective May 24, 2021, the Fund’s investment policy was revised to provide that the Fund may invest up to 10% of its Managed Assets in forward foreign exchange contracts (both deliverable and non-deliverable). Under the new policy, the Fund may use forward foreign exchange contracts for purposes of hedging or to gain investment exposure to certain foreign currencies. The remaining investment policies of the Fund will remain unchanged, including the policy providing that the Fund may invest only up to 5% of its respective Managed Assets in non-deliverable forward foreign exchange contracts.

6. Borrowings

The Fund has a credit agreement with The Bank of Nova Scotia, which provides for a revolving credit facility to be used as leverage for the Fund. The revolving credit facility provides for a secured line of credit for the Fund where Fund assets are pledged against advances made to the Fund. Under the requirements of the 1940 Act, the Fund, immediately after any such borrowings, must have an “asset coverage” of at least 300% (33-1/3% of the Fund’s total assets after borrowings). The total commitment under the facility is up to $70,000,000. As of June 30, 2021, the Fund had three loans outstanding under the revolving credit facility totaling $42,540,555, which approximates fair value, under the credit agreement. The borrowings are categorized as Level 2 within the fair value hierarchy. The three loans, which are all LIBOR loans, bear interest based on the adjusted LIBOR rate and are in the amounts of $25,600,000, $8,000,000 and $8,940,555 (the U.S. Dollar equivalent of a €9,425,000 loan). For the six months ended June 30, 2021, the average amount outstanding was $45,167,185. The high and low annual interest rates during the six months ended June 30, 2021 were 1.00% and 0.78%, respectively, and the average weighted average interest rate was 0.92%. The weighted average interest rate at June 30, 2021 was 0.89%. The interest rate under the credit facility is equal to the 1-month LIBOR plus 0.85%.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. These fees are included in “Interest and fees on loans” on the Statement of Operations. The revolving credit facility is scheduled to expire on December 17, 2021, but can be renewed annually.

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7. Indemnification

The Fund has a variety of indemnification obligations under contracts with its service providers. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

8. Tender Offer

As previously announced, the Fund conducted a tender offer for up to 20% of its outstanding common shares for cash at a price per share equal to 98% of the net asset value per share determined as of the close of the regular trading session of the NYSE on February 16, 2021 (the ”Valuation Date“). The Fund’s tender offer expired at 5:00 p.m. New York City time on Friday, February 12, 2021.

Since the Fund’s tender offer was oversubscribed, the Fund will purchase 20% of its outstanding common shares on a pro-rata basis based on the number of shares properly tendered (Pro-Ration Factor). The final results of the tender offer are provided in the table below.

9. Subsequent Events

Management has evaluated the impact of all subsequent events to the Fund through the date the financial statements were issued, and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed.

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Additional Information

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Dividend Reinvestment Plan

If your Common Shares are registered directly with the Fund or if you hold your Common Shares with a brokerage firm that participates in the Fund’s Dividend Reinvestment Plan (the “Plan”), unless you elect, by written notice to the Fund, to receive cash distributions, all dividends, including any capital gain distributions, on your Common Shares will be automatically reinvested by BNY Mellon Investment Servicing (US) Inc. (the “Plan Agent”), in additional Common Shares under the Plan. If you elect to receive cash distributions, you will receive all distributions in cash paid by check mailed directly to you by the Plan Agent, as the dividend paying agent.

If you decide to participate in the Plan, the number of Common Shares you will receive will be determined as follows:

(1)

If Common Shares are trading at or above net asset value (“NAV”) at the time of valuation, the Fund will issue new shares at a price equal to the greater of (i) NAV per Common Share on that date or (ii) 95% of the market price on that date.

(2)

If Common Shares are trading below NAV at the time of valuation, the Plan Agent will receive the dividend or distribution in cash and will purchase Common Shares in the open market, on the NYSE or elsewhere, for the participants’ accounts. It is possible that the market price for the Common Shares may increase before the Plan Agent has completed its purchases. Therefore, the average purchase price per share paid by the Plan Agent may exceed the market price at the time of valuation, resulting in the purchase of fewer shares than if the dividend or distribution had been paid in Common Shares issued by the Fund. The Plan Agent will use all dividends and distributions received in cash to purchase Common Shares in the open market within 30 days of the valuation date except where temporary curtailment or suspension of purchases is necessary to comply with federal securities laws. Interest will not be paid on any uninvested cash payments.

You may elect to opt-out of or withdraw from the Plan at any time by giving written notice to the Plan Agent, or by telephone at (866) 340-1104, in accordance with such reasonable requirements as the Plan Agent and the Fund may agree upon. If you withdraw or the Plan is terminated, you will receive a certificate for each whole share in your account under the Plan, and you will receive a cash payment for any fraction of a share in your account. If you wish, the Plan Agent will sell your shares and send you the proceeds, minus brokerage commissions.

The Plan Agent maintains all Common Shareholders’ accounts in the Plan and gives written confirmation of all transactions in the accounts, including information you may need for tax records. Common Shares in your account will be held by the Plan Agent in non-certificated form. The Plan Agent will forward to each participant any proxy solicitation material and will vote any shares so held only in accordance with proxies returned to the Fund. Any proxy you receive will include all Common Shares you have received under the Plan.

There is no brokerage charge for reinvestment of your dividends or distributions in Common Shares. However, all participants will pay a pro rata share of brokerage commissions incurred by the Plan Agent when it makes open market purchases.

Automatically reinvesting dividends and distributions does not mean that you do not have to pay income taxes due upon receiving dividends and distributions. Capital gains and income are realized although cash is not received by you. Consult your financial advisor for more information.

If you hold your Common Shares with a brokerage firm that does not participate in the Plan, you will not be able to participate in the Plan and any dividend reinvestment may be effected on different terms than those described above.

The Fund reserves the right to amend or terminate the Plan if in the judgment of the Board of Trustees the change is warranted. There is no direct service charge to participants in the Plan; however, the Fund reserves the right to amend the Plan to include a service charge payable by the participants. Additional information about the Plan may be obtained by writing BNY Mellon Investment Servicing (US) Inc., 301 Bellevue Parkway, Wilmington, Delaware 19809.

Proxy Voting Policies and Procedures

A description of the policies and procedures that the Fund uses to determine how to vote proxies and information on how the Fund voted proxies relating to portfolio investments during the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 988-5891; (2) on the Fund’s website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

Portfolio Holdings

The Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available on the

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SEC’s website at www.sec.gov. The Fund’s complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR. The semi-annual and annual report for the Fund is available to investors within 60 days after the period to which it relates. The Fund’s Forms N-PORT and Forms N-CSR are available on the SEC’s website listed above.

Submission of Matters to a Vote of Shareholders

The Fund held its Annual Meeting of Shareholders (the “Annual Meeting”) on April 26, 2021. At the Annual Meeting, Richard E. Erickson and Thomas R. Kadlec were elected by the Common Shareholders of the First Trust/Aberdeen Global Opportunity Income Fund as Class II Trustees for a three-year term expiring at the Fund’s annual meeting of shareholders in 2024. The number of votes cast in favor of Mr. Erickson was 8,540,299 and the number of votes withheld was 1,143,008. The number of votes cast in favor of Mr. Kadlec was 8,538,704 and the number of votes withheld was 1,144,603. James A. Bowen, Niel B. Nielson, and Robert F. Keith are the other current and continuing Trustees.

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.

Asset-Backed Securities Risk. 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. 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 one or more securities in the Fund’s portfolio will decline in price, or the issuer thereof will fail to pay dividends 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 susceptible to default or decline in market value 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.

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Cyber Security Risk. The Fund is more 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.

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. A significant number of countries in Europe are member states in the European Union (the “EU”), which faces major issues involving its membership, structure, procedures and policies. By adopting the Euro as its currency, a member state relinquishes control over its own monetary policies. In general, monetary policy is set for the Eurozone by the European Central Bank and fiscal policy is overseen and approved by the EU. European countries that are members of, or candidates to join, the Economic and Monetary Union (“EMU”) may be subject to various restrictions, including restrictions on deficits and debt levels. As a result of the foregoing, monetary and fiscal policies may not address the needs of all member countries. In addition, the fiscal policies of a single member state can impact and pose economic risks to the EU as a whole. There is continued concern over national-level support for the Euro, which could lead to certain countries leaving the EMU, the implementation of capital controls, or potentially the dissolution of the Euro. The dissolution of the Euro would have significant negative effects on European economies and would cause funds with holdings denominated in Euros to face substantial challenges, including difficulties relating to settlement of trades and valuation of holdings, diminished liquidity, and the redenomination of holdings into other currencies.

On June 23, 2016, the United Kingdom voted via referendum to leave the European Union, an event commonly referred to as “Brexit.” Brexit immediately led to significant market volatility around the world, as well as political, economic, and legal uncertainty. Approximately one year after the United Kingdom officially departed the European Union, the United Kingdom and the European Union reached a trade agreement that became effective on December 31, 2020. Under the terms of the trade deal, there will be no tariffs or quotas on the movement of goods between the United Kingdom and Europe. There can be no assurance that the new trade agreement will improve the instability in global financial markets caused by Brexit. At this time, it is difficult to predict what the longer term ramifications and political, economic, and legal implications will be as a result of Brexit, including the impact on the Fund’s portfolio holdings. The negative impact on not only the United Kingdom and European economies, but the broader global economy, could be significant, potentially resulting in increased volatility and illiquidity and lower economic growth for companies that rely significantly on Europe for their business activities and revenues.

The European financial markets have experienced volatility and adverse trends due to concerns about economic downturns, rising government debt levels and the possible default of government debt in several European countries. A default or debt restructuring by

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any European country can adversely impact holders of that country’s debt and can affect exposures to other EU countries and their financial companies as well. The European sovereign debt crisis has resulted in a weakened Euro and has put into question the future financial prospects of the European region as a whole.

Fixed Income Securities Risk. An investment in fixed income securities is subject to certain risks, including:

•	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. 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.

Forward Foreign Currency Exchange Contracts Risk. Pursuant to the forthcoming policy change discussed above, 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.

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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.

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: the likelihood of greater volatility of net asset value and market price of the common shares than a comparable portfolio without leverage; 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; 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 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. Securities held by the Fund, as well as shares of the Fund itself, are subject to market fluctuations caused by factors such as general economic conditions, political events, regulatory 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

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associated with these market fluctuations. In addition, local, regional or global events such as war, acts of terrorism, 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. Such events may affect certain geographic regions, countries, sectors and industries more significantly than others. The outbreak of the respiratory disease designated as COVID-19 in December 2019 caused significant volatility and declines in global financial markets, which caused losses for investors. The COVID-19 pandemic may last for an extended period of time and will continue to impact the economy for the foreseeable future.

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.

Potential Conflicts of Interest Risk. First Trust, ASII and the portfolio managers have interests which may conflict with the interests of the Fund. In particular, First Trust and ASII 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 ASII) 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 ASII have a financial incentive to leverage the Fund.

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.

Advisory and Sub-Advisory Agreements

Board Considerations Regarding Approval of Continuation of Investment Management and Investment Sub-Advisory Agreements

The Board of Trustees of First Trust/Aberdeen Global Opportunity Income Fund (the “Fund”), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the “Advisory Agreement”) between the Fund and First Trust Advisors L.P. (the “Advisor”) and the Investment Sub-Advisory Agreement (the “Sub-Advisory Agreement” and together with the Advisory Agreement, the “Agreements”) among the Fund, the Advisor and Aberdeen Standard Investments Inc. (the “Sub-Advisor”). The Board approved the continuation of the Agreements for a one-year period ending June 30, 2022 at a meeting held on June 6–7, 2021. The Board determined that the continuation of the Agreements is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment.

To reach this determination, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940 Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in

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voting on such agreements. At meetings held on April 26, 2021 and June 6–7, 2021, the Board, including the Independent Trustees, reviewed materials provided by the Advisor and the Sub-Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor and the Sub-Advisor to the Fund (including the relevant personnel responsible for these services and their experience); the advisory fee rate payable by the Fund and the sub-advisory fee rate as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged to other clients of the Advisor and the Sub-Advisor; the expense ratio of the Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information for the Fund, including comparisons of the Fund’s performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled by Broadridge; the nature of expenses incurred in providing services to the Fund and the potential for the Advisor and the Sub-Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; financial data for the Sub-Advisor; any fall-out benefits to the Advisor and the Sub-Advisor; and information on the Advisor’s and the Sub-Advisor’s compliance programs. The Board reviewed initial materials with the Advisor at the meeting held on April 26, 2021, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor and the Sub-Advisor. Following the April meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 6–7, 2021 meeting, as well as at the June meeting. The Board applied its business judgment to determine whether the arrangements between the Fund and the Advisor and among the Fund, the Advisor and the Sub-Advisor continue to be reasonable business arrangements from the Fund’s perspective. The Board determined that, given the totality of the information provided with respect to the Agreements, the Board had received sufficient information to renew the Agreements. The Board considered that shareholders chose to invest or remain invested in the Fund knowing that the Advisor and the Sub-Advisor manage the Fund.

In reviewing the Agreements, the Board considered the nature, extent and quality of the services provided by the Advisor and the Sub-Advisor under the Agreements. With respect to the Advisory Agreement, the Board considered that the Advisor is responsible for the overall management and administration of the Fund and reviewed all of the services provided by the Advisor to the Fund, including the oversight of the Sub-Advisor, as well as the background and experience of the persons responsible for such services. The Board noted that the Advisor oversees the Sub-Advisor’s day-to-day management of the Fund’s investments, including portfolio risk monitoring and performance review. In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor’s, the Sub-Advisor’s and the Fund’s compliance with the 1940 Act, as well as the Fund’s compliance with its investment objectives, policies and restrictions. The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Fund. Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 26, 2021 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Fund and the other funds in the First Trust Fund Complex. With respect to the Sub-Advisory Agreement, in addition to the written materials provided by the Sub-Advisor, at the April 26, 2021 meeting, the Board also received a presentation from representatives of the Sub-Advisor, who discussed the services that the Sub-Advisor provides to the Fund, including the Sub-Advisor’s day-to-day management of the Fund’s investments. In considering the Sub-Advisor’s management of the Fund, the Board noted the background and experience of the Sub-Advisor’s portfolio management team. In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Fund by the Advisor and the Sub-Advisor under the Agreements have been and are expected to remain satisfactory and that the Sub-Advisor, under the oversight of the Advisor, has managed the Fund consistent with its investment objectives, policies and restrictions.

The Board considered the advisory and sub-advisory fee rates payable under the Agreements for the services provided. The Board noted that the sub-advisory fee is paid by the Advisor from its advisory fee. The Board received and reviewed information showing the advisory fee rates and expense ratios of the peer funds in the Expense Group, as well as advisory and unitary fee rates charged by the Advisor and the Sub-Advisor to other fund and non-fund clients, as applicable. With respect to the Expense Group, the Board, at the April 26, 2021 meeting, discussed with the Advisor limitations in creating a relevant peer group for the Fund, including that (i) the Fund is unique in its composition, which makes assembling peers with similar strategies and asset mix difficult; (ii) not all peer funds employ an advisor/sub-advisor management structure; (iii) certain peer fund assets are larger than those of the Fund, in which case the comparison causes the fixed expenses of the Fund to be larger on a percentage basis; and (iv) the Fund invests predominately in foreign assets, which typically cost more to custody than domestic assets, and some of the peer funds have limited foreign allocations. The Board took these limitations into account in considering the peer data, and noted that the contractual advisory fee rate payable by the Fund, based on average managed assets, was above the median contractual advisory fee of the peer funds in the Expense Group. With respect to fees charged to other clients, the Board considered differences between the Fund and other clients that limited their comparability. In considering the advisory fee rate overall, the Board also considered the Advisor’s statement that it seeks to meet

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investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to the Fund and the other funds in the First Trust Fund Complex.

The Board considered performance information for the Fund. The Board noted the process it has established for monitoring the Fund’s performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor and Sub-Advisor for the Fund. The Board determined that this process continues to be effective for reviewing the Fund’s performance. The Board received and reviewed information comparing the Fund’s performance for periods ended December 31, 2020 to the performance of the funds in the Performance Universe and to that of a blended benchmark index. In reviewing the Fund’s performance as compared to the performance of the Performance Universe, the Board took into account the limitations described above with respect to creating a relevant peer group for the Fund. Based on the information provided on net asset value performance, the Board noted that the Fund underperformed the Performance Universe median for the one-, three- and five-year year periods ended December 31, 2020 and performed at the Performance Universe median for the ten-year period ended December 31, 2020. The Board also noted that the Fund underperformed the blended benchmark index for the one- and three-year periods ended December 31, 2020 and outperformed the blended benchmark index for the five- and ten-year periods ended December 31, 2020. In addition, the Board considered information provided by the Advisor on the impact of leverage on the Fund’s returns. The Board also received information on the Fund’s annual distribution rate as of December 31, 2020 and the Fund’s average trading discount for various periods and comparable information for a peer group.

On the basis of all the information provided on the fees, expenses and performance of the Fund and the ongoing oversight by the Board, the Board concluded that the advisory and sub-advisory fees continue to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor and the Sub-Advisor to the Fund under the Agreements.

The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Fund and noted the Advisor’s statement that it believes its expenses will likely increase during the next twelve months as the Advisor continues to hire personnel and build infrastructure, including technology, to improve the services to the Fund. The Board determined that due to the Fund’s closed end structure, the potential for realization of economies of scale as Fund assets grow was not a material factor to be considered. The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to the Fund for the twelve months ended December 31, 2020 and the estimated profitability level for the Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period. The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor’s profitability level for the Fund was not unreasonable. In addition, the Board considered fall-out benefits described by the Advisor that may be realized from its relationship with the Fund, including the Advisor’s compensation for fund reporting services pursuant to a separate Fund Reporting Services Agreement. The Board concluded that the character and amount of potential fall-out benefits to the Advisor were not unreasonable.

The Board considered the Sub-Advisor’s statements that because the Sub-Advisor intends to manage the Fund in a similar fashion to other accounts with similar strategies, it works to achieve economies of scale through relationships with brokers, administrative systems and other operational efficiencies, and that the Sub-Advisor expects shareholders of the Fund to continue to experience indirect economies of scale efficiencies. The Board did not review the profitability of the Sub-Advisor with respect to the Fund. The Board noted that the Advisor pays the Sub-Advisor from its advisory fee and its understanding that the Fund’s sub-advisory fee rate was the product of an arm’s length negotiation. The Board concluded that the profitability analysis for the Advisor was more relevant. The Board considered fall-out benefits that may be realized by the Sub-Advisor from its relationship with the Fund, and noted the Sub-Advisor’s statements that the Sub-Advisor absorbs all research costs directly (i.e., the Sub-Advisor pays for research from its profits and losses), and that the Sub-Advisor does not participate in any soft dollar or commission sharing relationships. The Board concluded that the character and amount of potential fall-out benefits to the Sub-Advisor were not unreasonable.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreements continue to be fair and reasonable and that the continuation of the Agreements is in the best interests of the Fund. No single factor was determinative in the Board’s analysis.

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INVESTMENT ADVISOR

First Trust Advisors L.P.

120 East Liberty Drive, Suite 400

Wheaton, IL 60187

INVESTMENT SUB-ADVISOR

Aberdeen Standard Investments Inc.

1900 Market Street, Suite 200

Philadelphia, PA 19103

TRANSFER AGENT

BNY Mellon Investment Servicing (US) Inc.

301 Bellevue Parkway

Wilmington, DE 19809

ADMINISTRATOR,
FUND ACCOUNTANT, AND
CUSTODIAN

The Bank of New York Mellon

240 Greenwich Street

New York, NY 10286

INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

Deloitte & Touche LLP

111 S. Wacker Drive

Chicago, IL 60606

LEGAL COUNSEL

Chapman and Cutler LLP

111 W. Monroe Street

Chicago, IL 60603