First Trust/abrdn Global Opportunity Income Fund (the "Fund")
(NYSE: FAM) has increased its regularly scheduled monthly common
share distribution to $0.06 per share from $0.0525 per share. The
distribution will be payable on June 15, 2023, to shareholders of
record as of June 2, 2023. The ex-dividend date is expected to be
June 1, 2023. The monthly distribution information for the Fund
appears below.
First Trust/abrdn
Global Opportunity Income Fund (FAM):
Distribution per share:
$0.06
Distribution Rate based on the May 19,
2023 NAV of $6.67:
10.79%
Distribution Rate based on the May 19,
2023 closing market price of $5.71:
12.61%
Increase from previous distribution of
$0.0525:
14.29%
This distribution will consist of net investment income earned
by the Fund and return of capital and may also consist of realized
capital gains. The final determination of the source and tax status
of all distributions paid in 2023 will be made after the end of
2023 and will be provided on Form 1099-DIV.
The Fund is a diversified, closed-end management investment
company that seeks to provide a high level of current income. As a
secondary objective, the Fund seeks capital appreciation. The Fund
pursues these investment objectives by investing in the world bond
markets through a diversified portfolio of investment grade and
below-investment grade government and corporate debt
securities.
First Trust Advisors L.P. ("FTA") is a federally registered
investment advisor and serves as the Fund's investment advisor. FTA
and its affiliate First Trust Portfolios L.P. ("FTP"), a FINRA
registered broker-dealer, are privately-held companies that provide
a variety of investment services. FTA has collective assets under
management or supervision of approximately $194 billion as of April
30, 2023 through unit investment trusts, exchange-traded funds,
closed-end funds, mutual funds and separate managed accounts. FTA
is the supervisor of the First Trust unit investment trusts, while
FTP is the sponsor. FTP is also a distributor of mutual fund shares
and exchange-traded fund creation units. FTA and FTP are based in
Wheaton, Illinois.
abrdn Inc. ("abrdn") serves as the Fund's investment
sub-advisor. abrdn is an indirect wholly-owned subsidiary of abrdn
plc. abrdn is the brand name for the asset management group of
abrdn plc, managing approximately $452.4 billion in assets as of
December 31, 2022 for a range of pension funds, financial
institutions, investment trusts, unit trusts, offshore funds,
charities and private clients.
Principal Risk Factors: Risks are inherent in all investing.
Certain risks applicable to the Fund are identified below, which
includes the risk that you could lose some or all of your
investment in the Fund. The principal risks of investing in the
Fund are spelled out in the Fund's annual shareholder reports. The
order of the below risk factors does not indicate the significance
of any particular risk factor. The Fund also files reports, proxy
statements and other information that is available for
review.
Past performance is no assurance of future results. Investment
return and market value of an investment in the Fund will
fluctuate. Shares, when sold, may be worth more or less than their
original cost. There can be no assurance that the Fund's investment
objectives will be achieved. The Fund may not be appropriate for
all investors.
Securities held by a fund, as well as shares of a 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 a fund could decline in value or
underperform other investments as a result of the risk of loss
associated with these market fluctuations. In addition, local,
regional or global events such as war, acts of terrorism, spread of
infectious diseases or other public health issues, recessions,
natural disasters or other events could have a significant negative
impact on a fund and its investments. Such events may affect
certain geographic regions, countries, sectors and industries more
significantly than others. In February 2022, Russia invaded Ukraine
which has caused and could continue to cause significant market
disruptions and volatility within the markets in Russia, Europe,
and the United States. The hostilities and sanctions resulting from
those hostilities could have a significant impact on certain fund
investments as well as fund performance. The COVID-19 global
pandemic and the ensuing policies enacted by governments and
central banks have caused and may continue to cause significant
volatility and uncertainty in global financial markets. While
vaccines have been developed, there is no guarantee that vaccines
will be effective against future variants of the disease. Recent
and potential future bank failures could result in disruption to
the broader banking industry or markets generally and reduce
confidence in financial institutions and the economy as a whole,
which may also heighten market volatility and reduce liquidity.
The Fund invests in securities of non-U.S. issuers which are
subject to higher volatility than securities of U.S. issuers. The
Fund may invest from time to time a substantial amount of its
assets in issuers located in a single country or region. Risks may
be heightened for securities of companies located in, or with
significant operations in, emerging market countries. Because the
Fund invests in non-U.S. securities, you may lose money if the
local currency of a non-U.S. market depreciates against the U.S.
dollar.
The Fund invests in non-investment grade debt instruments,
commonly referred to as "high-yield securities". High-yield
securities are subject to greater market fluctuations and risk of
loss than securities with higher ratings. Lower-quality debt tends
to be less liquid than higher-quality debt.
The debt securities in which the Fund invests are subject to
certain risks, including issuer risk, reinvestment risk, prepayment
risk, credit risk, and interest rate risk. Issuer risk is the risk
that the value of fixed-income securities may decline for a number
of reasons which directly relate to the issuer. 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 bonds
at market interest rates that are below the Fund portfolio's
current earnings rate. Prepayment risk is the risk that, upon a
prepayment, the actual outstanding debt on which the Fund derives
interest income will be reduced. Credit risk is the risk that an
issuer of a security will be unable or unwilling to make dividend,
interest and/or principal payments when due and that the value of a
security may decline as a result. Interest rate risk is the risk
that fixed-income securities will decline in value because of
changes in market interest rates.
Investments in securities of issuers located in emerging market
countries are considered speculative and there is a heightened risk
of investing in emerging markets securities. Financial and other
reporting by companies and government entities also may be less
reliable in emerging market countries. Shareholder 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 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.
Forward foreign currency exchange contracts involve certain
risks, including the risk of failure of the counterparty to perform
its obligations under the contract and 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.
To the extent a fund invests in floating or variable rate
obligations that use the London Interbank Offered Rate ("LIBOR") as
a reference interest rate, it is subject to LIBOR Risk. The United
Kingdom's Financial Conduct Authority, which regulates LIBOR has
ceased making LIBOR available as a reference rate over a phase-out
period that began December 31, 2021. There is no assurance that any
alternative reference rate, including the Secured Overnight
Financing Rate ("SOFR") will be similar to or produce the same
value or economic equivalence as LIBOR or that instruments using an
alternative rate will have the same volume or liquidity. The
unavailability or replacement of LIBOR may affect the value,
liquidity or return on certain fund investments and may result in
costs incurred in connection with closing out positions and
entering into new trades. Any potential effects of the transition
away from LIBOR on the fund or on certain instruments in which the
fund invests can be difficult to ascertain, and they may vary
depending on a variety of factors, and they could result in losses
to the fund.
Political or economic disruptions in European countries, even in
countries in which a fund is not invested, may adversely affect
security values and thus the fund's holdings. A significant number
of countries in Europe are member states in the European Union, and
the member states no longer control their own monetary policies. In
these member states, the authority to direct monetary policies,
including money supply and official interest rates for the Euro, is
exercised by the European Central Bank. The implications of the
United Kingdom's withdrawal from the European Union are difficult
to gauge and cannot yet be fully known.
Use of leverage can result in additional risk and cost, and can
magnify the effect of any losses.
The risks of investing in the Fund are spelled out in the
shareholder reports and other regulatory filings.
The information presented is not intended to constitute an
investment recommendation for, or advice to, any specific person.
By providing this information, First Trust is not undertaking to
give advice in any fiduciary capacity within the meaning of ERISA,
the Internal Revenue Code or any other regulatory framework.
Financial professionals are responsible for evaluating investment
risks independently and for exercising independent judgment in
determining whether investments are appropriate for their
clients.
The Fund's daily closing New York Stock Exchange price and net
asset value per share as well as other information can be found at
https://www.ftportfolios.com or by calling 1-800-988-5891.
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