Certified Semi-annual Shareholder Report for Management Investment Companies (n-csrs)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-22039

First Trust Specialty Finance and Financial Opportunities Fund
(Exact name of registrant as specified in charter)

120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Address of principal executive offices) (Zip code)

W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
(Name and address of agent for service)

Registrant’s telephone number, including area code: 630-765-8000

Date of fiscal year end: November 30

Date of reporting period: May 31, 2022

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

(a)

The Report to Shareholders is attached herewith.

First Trust

Specialty Finance and Financial
Opportunities Fund (FGB)

Semi-Annual Report

For the Six Months Ended

May 31, 2022

Table of Contents

First Trust Specialty Finance and Financial Opportunities Fund (FGB)

Semi-Annual Report

May 31, 2022

Shareholder Letter	1
At a Glance	2
Portfolio Commentary	4
Portfolio of Investments	8
Statement of Assets and Liabilities	9
Statement of Operations	10
Statements of Changes in Net Assets	11
Statement of Cash Flows	12
Financial Highlights	13
Notes to Financial Statements	14
Additional Information	19

Caution Regarding Forward-Looking Statements

This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans or current expectations of First Trust Advisors L.P. (“First Trust” or the “Advisor”) and/or Confluence Investment Management LLC (“Confluence” or the “Sub-Advisor”) and their respective representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current or historical fact. For example, forward-looking statements include the use of words such as “anticipate,” “estimate,” “intend,” “expect,” “believe,” “plan,” “may,” “should,” “would” or other words that convey uncertainty of future events or outcomes.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of First Trust Specialty Finance and Financial Opportunities Fund (the “Fund”) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and/or Sub-Advisor and their respective representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof.

Performance and Risk Disclosure

There is no assurance that the Fund will achieve its investment objectives. The Fund is subject to market risk, which is the possibility that the market values of securities owned by the Fund will decline and that the value of the Fund’s shares may therefore be less than what you paid for them. Accordingly, you can lose money by investing in the Fund. See “Principal Risks” in the Additional Information section of this report for a discussion of certain other risks of investing in the Fund.

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and common share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.

The Advisor may also periodically provide additional information on Fund performance on the Fund’s web page at www.ftportfolios.com.

How to Read This Report

This report contains information that may help you evaluate your investment in the Fund. It includes details about the Fund and presents data and analysis that provide insight into the Fund’s performance and investment approach.

By reading the portfolio commentary by the portfolio management team of the Fund, you may obtain an understanding of how the market environment affected the Fund’s performance. The statistical information that follows may help you understand the Fund’s performance compared to that of relevant market benchmarks.

It is important to keep in mind that the opinions expressed by personnel of First Trust and Confluence are just that: informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. The material risks of investing in the Fund are spelled out in the prospectus, the statement of additional information, this report and other Fund regulatory filings.

Table of Contents

Shareholder Letter

First Trust Specialty Finance and Financial Opportunities Fund (FGB)

Semi-Annual Letter from the Chairman and CEO

May 31, 2022

Dear Shareholders,

First Trust is pleased to provide you with the semi-annual report for the First Trust Specialty Finance and Financial Opportunities Fund (the “Fund”), which contains detailed information about the Fund for the six months ended May 31, 2022.

I would like to begin by addressing the elephant in the room: how everything so good has seemingly gotten so bad. If you are someone having difficulty understanding today’s investment climate, you are certainly not alone, in my opinion. Let us see if we can make some sense of things. While stocks and bonds have been roughed up in 2022, commodities, such as crude oil and gasoline, have surged higher. For the better part of the previous decade, the opposite was true. Stocks and bonds prospered in a low rate, low inflationary climate, while commodities dropped in value. It appears that the primary catalyst behind this recent shift in sentiment is robust inflation, which is defined as too much money chasing too few goods. The Consumer Price Index (“CPI”) stood at 8.6% on a trailing 12-month basis on May 31, 2022, the highest it has been since 1982, according to data from the U.S. Bureau of Labor Statistics. For comparative purposes, the average rate on the CPI has been 3.0% since 1926.

Conventional wisdom says that the cure for high prices is high prices, particularly with respect to commodities. In other words, let market forces determine prices. This implies that high prices at some point should be effective in curbing demand, which, in turn, should reduce the supply of goods and prices over time. But we do not leave it solely to market forces. This is where the central banks step in. The Federal Reserve (the “Fed”) played a major role in fueling inflation by massively increasing the U.S. money supply during the coronavirus pandemic to help prop up demand, in my opinion. The Fed’s traditional remedy for spiking inflation is to curb demand for goods and services by increasing the rate of interest levied on borrowed money. This process is currently underway. As of June 15, 2022, the Federal Funds target rate (upper bound) stood at 1.75%, up from 0.25% this past March. The Fed has signaled that it intends to raise this benchmark lending rate by another 50-75 basis points (“bps”) at its next meeting on July 27, 2022 and could take the rate above the 3.00% mark by year-end. Investors need to accept the fact that the days of low inflation and low interest rates are behind us, at least for the foreseeable future.

As previously noted, stocks and bonds have succumbed to selling pressure in 2022. Aside from spiking inflation, the common thread between the two markets is the sharp rise in Treasury yields, particularly the benchmark 10-Year Treasury Note (“T-Note”). In fact, higher bond yields are usually a byproduct of rising inflation. The closing yield on the 10-Year T-Note has risen from 1.51% on December 31, 2021 to 3.23% on June 17, 2022, or an increase of 172 bps, according to Bloomberg. That is a sharp move higher in a relatively short period of time. As you likely know, bond prices and bond yields are inversely related. When bond yields rise, bond prices, in most cases, fall, particularly with respect to investment-grade debt. Keep in mind, the yield on the 10-Year T-Note bottomed at 0.51% (all-time closing low) on August 4, 2020, so bond yields have been normalizing for nearly two years. What is normal? Well, the yield on the 10-Year T-Note averaged 3.95% for the 30-year period ended June 17, 2022. Stock prices have also been negatively impacted by the upward move in bond yields. Higher bond yields can put downward pressure on future corporate earnings and margins. Stock prices have been adjusting lower to reflect this. Also, over time, the higher bond yields trend, the more attractive/competitive they become to investors relative to stocks. Lastly, after posting an annualized U.S. gross domestic product (“GDP”) growth rate of -1.5% in the first quarter of 2022, we are hearing more talk about the potential for a recession, which is defined as two consecutive quarters of negative GDP growth. The Fed has discussed the concept of a soft landing, where the economy would slow but not enter recessionary territory, but that is easier said than done. Brian Wesbury, Chief Economist at First Trust, is not forecasting a recession for this year, but he does believe we could experience one in late 2023 or 2024. As always, stay the course!

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

Table of Contents

First Trust Specialty Finance and Financial Opportunities Fund (FGB)

“AT A GLANCE”

As of May 31, 2022 (Unaudited)

Fund Statistics
Symbol on New York Stock Exchange	FGB
Common Share Price	$3.58
Common Share Net Asset Value (“NAV”)	$4.01
Premium (Discount) to NAV	(10.72)%
Net Assets Applicable to Common Shares	$57,611,329
Current Quarterly Distribution per Common Share⁽¹⁾	$0.0825
Current Annualized Distribution per Common Share	$0.3300
Current Distribution Rate on Common Share Price⁽²⁾	9.22%
Current Distribution Rate on NAV⁽²⁾	8.23%

Common Share Price & NAV (weekly closing price)

Performance
		Average Annual Total Returns
	6 Months Ended 5/31/22	1 Year Ended 5/31/22	5 Years Ended 5/31/22	10 Years Ended 5/31/22	Inception (5/25/07) to 5/31/22
Fund Performance⁽³⁾
NAV	-3.28%	2.09%	-0.71%	4.23%	0.12%
Market Value	-6.53%	-7.56%	-3.77%	3.09%	-0.94%
Index Performance
Blended Benchmark⁽⁴⁾	-3.51%	-0.99%	6.68%	8.50%	N/A
MSCI U.S. Investable Market Financials Index	-7.99%	-7.05%	7.96%	11.13%	N/A
Prior Blended Benchmark⁽⁴⁾⁽⁵⁾	N/A	N/A	N/A	N/A	N/A

⁽¹⁾	Most recent distribution paid or declared through May 31, 2022. 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 May 31, 2022. 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⁾

On 7/1/21, the Fund’s benchmark changed from the Prior Blended Benchmark to the Blended Benchmark, because the Wells Fargo BDC Index (one of the Prior Blended Benchmark’s components) was discontinued on 7/30/2021. The Blended Benchmark consists of a 70/20/10 blend of the MVIS U.S. Business Development Companies Index, the FTSE NARIET Mortgage REIT Index and the S&P SmallCap Financials Index. The Prior Blended Benchmark consists of a 70/20/10 blend of the Wells Fargo BDC Index, the FTSE NAREIT Mortgage REIT Index, and the S&P SmallCap Financials Index. The Blended Benchmark and Prior Blended Benchmark 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 account for divergence from that ratio that occurred during the course of each month to the ratios noted above. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Benchmark and the Prior Blended Benchmark for each period shown above. Since the MVIS U.S. Business Development Companies Index had an inception date of August 4, 2011, the performance of the Blended Benchmark is not available for all of the periods disclosed.

⁽⁵⁾	Because a component of the Prior Blended Benchmark has been discontinued, performance for the Prior Blended Benchmark is not available for the periods disclosed.

Page 2

Table of Contents

First Trust Specialty Finance and Financial Opportunities Fund (FGB)

“AT A GLANCE” (Continued)

As of May 31, 2022 (Unaudited)

Asset Classification	% of Total Investments
Common Stocks - Business Development Companies	92.0%
Common Stocks	4.3
Real Estate Investment Trusts (REITs)	3.7
Total	100.0%

Industry Classification	% of Total Investments
Capital Markets	92.0%
Mortgage Real Estate Investment Trusts	3.7
Diversified Financial Services	2.2
Insurance	2.1
Total	100.0%

Top Ten Holdings	% of Total Investments
Ares Capital Corp.	7.4%
Hercules Capital, Inc.	7.3
PennantPark Investment Corp.	7.1
BlackRock TCP Capital Corp.	6.8
New Mountain Finance Corp.	6.5
Main Street Capital Corp.	6.5
Barings BDC, Inc.	6.2
Golub Capital BDC, Inc.	5.4
OFS Capital Corp.	5.2
Sixth Street Specialty Lending, Inc.	4.6
Total	63.0%

Page 3

Table of Contents

Portfolio Commentary

First Trust Specialty Finance and Financial Opportunities Fund (FGB)

Semi-Annual Report

May 31, 2022 (Unaudited)

Advisor

First Trust Advisors L.P. (“First Trust” or the “Advisor”) serves as the investment advisor to the First Trust Specialty Finance and Financial Opportunities 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

Confluence Investment Management LLC, a registered investment advisor (“Confluence” or the “Sub-Advisor”), located in St. Louis, Missouri, serves as the sub-advisor to the Fund. The investment professionals at Confluence have an average of over 20 years of portfolio management experience each. Confluence professionals have invested in a wide range of specialty finance and other financial company securities during various market cycles, working to provide attractive risk-adjusted returns to clients.

Confluence Portfolio Management Team

Mark Keller, CFA

Chief Executive Officer and Chief Investment Officer

David Miyazaki, CFA

Senior Vice President and Portfolio Manager

Daniel Winter, CFA

Senior Vice President and Chief Investment Officer - Value Equity

First Trust Specialty Finance and Financial Opportunities Fund (FGB)

The primary investment objective of the Fund is to seek a high level of current income. As a secondary objective, the Fund seeks an attractive total return. The Fund pursues its investment objectives by investing, under normal market conditions, at least 80% of its Managed Assets in a portfolio of securities of specialty finance and other financial companies that the Fund’s Sub-Advisor believes offer attractive opportunities for income and capital appreciation. Under normal market conditions, the Fund concentrates its investments in securities of companies within the industries in the financial sector. “Managed Assets” means the total asset value of the Fund minus the sum of its liabilities, other than the principal amount of borrowings. There can be no assurance that the Fund’s investment objectives will be achieved. The Fund may not be appropriate for all investors.

Market Recap

The Fund is a financial sector fund with a particular focus on a niche called business development companies (“BDCs”). BDCs lend to, and invest in, private companies, oftentimes working with those not large enough to efficiently access the public markets. Each BDC has a unique profile, determined by its respective management team. Some specialize in particular industries, while others apply a more generalized approach and maintain a diversified portfolio. Both approaches can work effectively and offer shareholders a unique and differentiated return opportunity derived from the private markets.

During the six-month period ended May 31, 2022, the Fund had approximately 93% of its assets invested in 23 BDCs; 4% in large capitalization (“cap”) financials and 3% in mortgage-backed real estate investment trusts (“MBS REITs”).

Page 4

Table of Contents

Portfolio Commentary (Continued)

First Trust Specialty Finance and Financial Opportunities Fund (FGB)

Semi-Annual Report

May 31, 2022 (Unaudited)

Performance Analysis

		Average Annual Total Returns
	6 Months Ended 5/31/22	1 Year Ended 5/31/22	5 Years Ended 5/31/22	10 Years Ended 5/31/22	Inception (5/25/07) to 5/31/22
Fund Performance⁽¹⁾
NAV	-3.28%	2.09%	-0.71%	4.23%	0.12%
Market Value	-6.53%	-7.56%	-3.77%	3.09%	-0.94%
Index Performance
Blended Benchmark⁽²⁾	-3.51%	-0.99%	6.68%	8.50%	N/A
MSCI U.S. Investable Market Financials Index	-7.99%	-7.05%	7.96%	11.13%	N/A
Prior Blended Benchmark⁽²⁾⁽³⁾	N/A	N/A	N/A	N/A	N/A

Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the indices do not actually hold a portfolio of securities and therefore do not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance.

⁽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⁾

On 7/1/2021, the Fund’s benchmark changed from the Prior Blended Benchmark to the Blended Benchmark, because the Wells Fargo BDC Index (one of the Prior Blended Benchmark’s components) was discontinued on 7/30/2021. The Blended Benchmark consists of a 70/20/10 blend of the MVIS U.S. Business Development Companies Index, the FTSE NARIET Mortgage REIT Index and the S&P SmallCap Financials Index. The Prior Blended Benchmark consists of a 70/20/10 blend of the Wells Fargo BDC Index, the FTSE NAREIT Mortgage REIT Index, and the S&P SmallCap Financials Index. The Blended Benchmark and Prior Blended Benchmark 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 account for divergence from that ratio that occurred during the course of each month to the ratios noted above. The monthly returns are then compounded for each period shown above, giving the performance for the Blended Benchmark and the Prior Blended Benchmark for each period shown above. Since the MVIS U.S. Business Development Companies Index had an inception date of August 4, 2011, the performance of the Blended Benchmark is not available for all of the periods disclosed.

⁽³⁾	Because a component of the Prior Blended Benchmark has been discontinued, performance for the Prior Blended Benchmark is not available for the periods disclosed.

Page 5

Shares	Description	Value
COMMON STOCKS – BUSINESS DEVELOPMENT COMPANIES – 104.8%
	Capital Markets – 104.8%
250,000	Ares Capital Corp. (a)	$4,845,000
390,000	Barings BDC, Inc. (a)	4,040,400
332,000	BlackRock TCP Capital Corp. (a)	4,458,760
89,500	Blackstone Secured Lending Fund (a)	2,220,495
71,000	Capital Southwest Corp. (a)	1,586,850
26,000	Crescent Capital BDC, Inc. (a)	452,660
38,500	FS KKR Capital Corp	832,370
135,000	Goldman Sachs BDC, Inc. (a)	2,442,150
250,000	Golub Capital BDC, Inc. (a)	3,535,000
340,000	Hercules Capital, Inc. (a)	4,787,200
111,000	Main Street Capital Corp. (a)	4,232,430
328,000	New Mountain Finance Corp. (a)	4,241,040
268,000	OFS Capital Corp. (a)	3,406,280
150,000	Owl Rock Capital Corp. (a)	2,034,000
656,000	PennantPark Investment Corp. (a)	4,644,480
14,551	PhenixFIN Corp. (b)	560,359
44,000	Portman Ridge Finance Corp.	984,280
147,000	Sixth Street Specialty Lending, Inc. (a)	3,041,430
186,000	SLR Investment Corp. (a)	2,957,400
197,000	Stellus Capital Investment Corp. (a)	2,499,930
78,000	Trinity Capital, Inc. (a)	1,297,140
85,000	TriplePoint Venture Growth BDC Corp. (a)	1,265,650
	Total Common Stocks - Business Development Companies	60,365,304
	(Cost $65,375,856)
COMMON STOCKS – 4.9%
	Diversified Financial Services – 2.5%
4,500	Berkshire Hathaway, Inc., Class B (a) (b)	1,421,910
	Insurance – 2.4%
150	Markel Corp. (b)	205,415
11,000	Prudential Financial, Inc. (a)	1,168,750
		1,374,165
	Total Common Stocks	2,796,075
	(Cost $1,888,449)
REAL ESTATE INVESTMENT TRUSTS – 4.2%
	Mortgage Real Estate Investment Trusts – 4.2%
110,000	AGNC Investment Corp. (a)	1,345,300

Shares	Description	Value

	Mortgage Real Estate Investment Trusts (Continued)
165,000	Annaly Capital Management, Inc. (a)	$1,090,650
	Total Real Estate Investment Trusts	2,435,950
	(Cost $3,147,910)
	Total Investments – 113.9%	65,597,329
	(Cost $70,412,215)
	Outstanding Loan – (14.9)%	(8,600,000)
	Net Other Assets and Liabilities – 1.0%	614,000
	Net Assets – 100.0%	$57,611,329

(a)	All or a portion of this security serves as collateral on the outstanding loan.
(b)	Non-income producing security.

	Total Value at 5/31/2022	Level 1 Quoted Prices	Level 2 Significant Observable Inputs	Level 3 Significant Unobservable Inputs
Common Stocks - Business Development Companies*	$ 60,365,304	$ 60,365,304	$ —	$ —
Common Stocks*	2,796,075	2,796,075	—	—
Real Estate Investment Trusts*	2,435,950	2,435,950	—	—
Total Investments	$ 65,597,329	$ 65,597,329	$—	$—

ASSETS:
Investments, at value (Cost $70,412,215)	$ 65,597,329
Cash	573,268
Foreign currency (Cost $26)	20
Receivables:
Dividends	127,007
Investment securities sold	40,433
Prepaid expenses	14,550
Total Assets	66,352,607
LIABILITIES:
Outstanding loan	8,600,000
Payables:
Investment advisory fees	57,091
Audit and tax fees	39,901
Interest and fees on loan	19,759
Transfer agent fees	12,844
Shareholder reporting fees	5,203
Administrative fees	2,795
Trustees’ fees and expenses	2,115
Financial reporting fees	771
Custodian fees	496
Legal fees	303
Total Liabilities	8,741,278
NET ASSETS	$57,611,329
NET ASSETS consist of:
Paid-in capital	$ 113,568,471
Par value	143,676
Accumulated distributable earnings (loss)	(56,100,818)
NET ASSETS	$57,611,329
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share)	$4.01
Number of Common Shares outstanding (unlimited number of Common Shares has been authorized)	14,367,591

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Your Recent History

INVESTMENT INCOME:
Dividends		$ 3,030,253
Interest		12
Total investment income		3,030,265
EXPENSES:
Investment advisory fees		356,151
Interest and fees on loan		98,088
Audit and tax fees		30,524
Shareholder reporting fees		20,600
Transfer agent fees		16,075
Administrative fees		13,830
Listing expense		12,315
Trustees’ fees and expenses		8,864
Financial reporting fees		4,625
Custodian fees		2,562
Legal fees		2,073
Other		5,464
Total expenses		571,171
NET INVESTMENT INCOME (LOSS)		2,459,094
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments		(2,410,189)
Net change in unrealized appreciation (depreciation) on investments		(2,264,068)
NET REALIZED AND UNREALIZED GAIN (LOSS)		(4,674,257)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		$(2,215,163)

	Six Months Ended 5/31/2022 (Unaudited)	Year Ended 11/30/2021
OPERATIONS:
Net investment income (loss)	$ 2,459,094	$ 3,774,004
Net realized gain (loss)	(2,410,189)	1,419,539
Net change in unrealized appreciation (depreciation)	(2,264,068)	12,307,561
Net increase (decrease) in net assets resulting from operations	(2,215,163)	17,501,104
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations	(2,370,653)	(4,336,550)
Return of capital	—	(404,755)
Total distributions to shareholders	(2,370,653)	(4,741,305)
Total increase (decrease) in net assets	(4,585,816)	12,759,799
NET ASSETS:
Beginning of period	62,197,145	49,437,346
End of period	$ 57,611,329	$ 62,197,145
COMMON SHARES:
Common Shares at end of period	14,367,591	14,367,591

Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations	$(2,215,163)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:
Purchases of investments	(2,577,211)
Sales, maturities and paydown of investments	2,782,044
Net realized gain/loss on investments	2,410,189
Net change in unrealized appreciation/depreciation on investments	2,264,068
Changes in assets and liabilities:
Decrease in dividends receivable	58,604
Increase in prepaid expenses	(9,857)
Decrease in interest and fees payable on loan	(8,921)
Decrease in investment advisory fees payable	(3,355)
Decrease in audit and tax fees payable	(19,601)
Decrease in legal fees payable	(997)
Decrease in shareholder reporting fees payable	(7,413)
Decrease in administrative fees payable	(15)
Decrease in custodian fees payable	(332)
Increase in transfer agent fees payable	10,465
Decrease in trustees’ fees and expenses payable	(374)
Cash provided by operating activities		$2,682,131
Cash flows from financing activities:
Distributions to Common Shareholders from investment operations	(3,555,979)
Cash used in financing activities		(3,555,979)
Decrease in cash and foreign currency		(873,848)
Cash and foreign currency at beginning of period		1,447,136
Cash and foreign currency at end of period		$573,288
Supplemental disclosure of cash flow information:
Cash paid during the period for interest and fees		$107,009

	Six Months Ended 5/31/2022 (Unaudited)	Year Ended November 30,
	Six Months Ended 5/31/2022 (Unaudited)	2021	2020	2019	2018	2017
Net asset value, beginning of period	$ 4.33	$ 3.44	$ 5.92	$ 5.78	$ 6.42	$ 6.82
Income from investment operations:
Net investment income (loss)	0.18	0.26	0.33	0.58	0.66	0.54
Net realized and unrealized gain (loss)	(0.33)	0.96	(2.37)	0.22	(0.60)	(0.24)
Total from investment operations	(0.15)	1.22	(2.04)	0.80	0.06	0.30
Distributions paid to shareholders from:
Net investment income	(0.17)	(0.30)	(0.44)	(0.40)	(0.63)	(0.60)
Return of capital	—	(0.03)	—	(0.26)	(0.07)	(0.10)
Total distributions paid to Common Shareholders	(0.17)	(0.33)	(0.44)	(0.66)	(0.70)	(0.70)
Net asset value, end of period	$4.01	$4.33	$3.44	$5.92	$5.78	$6.42
Market value, end of period	$3.58	$4.00	$3.28	$5.90	$6.07	$6.38
Total return based on net asset value (a)	(3.28)%	36.49%	(34.67)%	14.58%	1.09%	4.23%
Total return based on market value (a)	(6.53)%	32.23%	(37.49)%	8.74%	6.83%	0.91%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)	$ 57,611	$ 62,197	$ 49,437	$ 85,054	$ 82,960	$ 92,165
Ratio of total expenses to average net assets	1.82% (b)	1.78%	2.35%	2.56%	2.38%	2.02%
Ratio of total expenses to average net assets excluding interest expense	1.51% (b)	1.49%	1.78%	1.60%	1.58%	1.52%
Ratio of net investment income (loss) to average net assets	7.85% (b)	6.35%	8.87%	9.95%	10.79%	7.66%
Portfolio turnover rate	4%	8%	20%	7%	12%	5%
Indebtedness:
Total loan outstanding (in 000’s)	$ 8,600	$ 8,600	$ 6,500	$ 25,000	$ 25,000	$ 25,000
Asset coverage per $1,000 of indebtedness (c)	$ 7,699	$ 8,232	$ 8,606	$ 4,402	$ 4,318	$ 4,687

(a)	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.
(b)	Annualized.
(c)	Calculated by subtracting the Fund’s total liabilities (not including the loan outstanding) from the Fund’s total assets, and dividing by the outstanding loan balance in 000’s.

1)	the type of security;
2)	the size of the holding;
3)	the initial cost of the security;
4)	transactions in comparable securities;
5)	price quotes from dealers and/or third-party pricing services;
6)	relationships among various securities;
7)	information obtained by contacting the issuer, analysts, or the appropriate stock exchange;
8)	an analysis of the issuer’s financial statements; and
9)	the existence of merger proposals or tender offers that might affect the value of the security.

1)	the value of similar foreign securities traded on other foreign markets;
2)	ADR trading of similar securities;
3)	closed-end fund or exchange-traded fund trading of similar securities;
4)	foreign currency exchange activity;
5)	the trading prices of financial products that are tied to baskets of foreign securities;
6)	factors relating to the event that precipitated the pricing problem;
7)	whether the event is likely to recur; and
8)	whether the effects of the event are isolated or whether they affect entire markets, countries or regions.

•	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.

Distributions paid from:
Ordinary income	$4,336,550
Capital gains	—
Return of capital	404,755

Tax Cost		Gross Unrealized Appreciation		Gross Unrealized (Depreciation)		Net Unrealized Appreciation (Depreciation)
$70,412,215		$5,306,251		$(10,121,137)		$(4,814,886)

Undistributed ordinary income	$—
Undistributed capital gains	—
Total undistributed earnings	—
Accumulated capital and other losses	(47,378,251)
Net unrealized appreciation (depreciation)	(2,951,425)
Total accumulated earnings (losses)	(50,329,676)
Other	(1,185,326)
Paid-in capital	113,712,147
Total net assets	$62,197,145

By (Signature and Title)*		/s/ James M. Dykas
		James M. Dykas, President and Chief Executive Officer (principal executive officer)

By (Signature and Title)*		/s/ Donald P. Swade
		Donald P. Swade, Treasurer, Chief Financial Officer and Chief Accounting Officer (principal financial officer)