First Trust Announces Additional Considerations for the First Trust/Aberdeen Global Opportunity Income Fund and First Trust/Aberdeen Emerging Opportunity Fund Relating to the Russia/Ukraine Conflict
March 18 2022 - 4:10PM
Business Wire
First Trust Advisors L.P. ("FTA") announced today additional
considerations for the First Trust/Aberdeen Global Opportunity
Income Fund (NYSE: FAM) and First Trust/Aberdeen Emerging
Opportunity Fund (NYSE: FEO) (each a “Fund” and collectively, the
“Funds”) relating to the February 2022 Russian invasion of
Ukraine.
The conflict between these two countries, including the
announcement of sanctions against Russia by various countries, has
negatively affected the value of the Funds’ Russian, Ukrainian, and
Belarusian investments, and may continue to do so. The conflict may
also negatively impact other regional and global economic markets
of the world (including Europe and the United States), companies in
such markets and various sectors, industries and markets for
securities and commodities, such as oil and natural gas.
Accordingly, the hostilities and sanctions may have a negative
effect on each Fund’s investments and performance beyond that
related to any direct exposure to Russian or Ukrainian issuers or
those of adjoining geographic regions, including Belarus. The
Funds’ portfolio holdings as of December 31, 2021, including
investments in Russian, Ukrainian, and Belarusian securities, can
be found in their respective Annual Reports for the year ended
December 31, 2021, available at www.ftportfolios.com. As of March
17, 2022, approximately 1.16% of FAM’s managed assets and
approximately 1.17% of FEO’s managed assets were invested in
Russian, Ukrainian, and Belarusian securities, and this decline is
largely a result of the loss of value in these affected securities.
The conflict and resulting sanctions could further impair the
ability of each Fund to buy, sell, hold or deliver Russian,
Ukrainian, and Belarusian securities and/or other assets, which
could in turn further negatively impact a Fund’s net asset
value.
FAM 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.
FEO is a diversified, closed-end management investment company
that seeks to provide a high level of total return. The Fund seeks
to achieve its investment objective by investing at least 80% of
its managed assets in a diversified portfolio of equity and
fixed-income securities of issuers in emerging market
countries.
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 $210 billion as of February 28, 2022 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. (formerly Aberdeen Standard Investments Inc.)
(“abrdn”) serves as the Fund's investment subadvisor. 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 $627.89 billion in assets as of December 31, 2021,
for a range of pension funds, financial institutions, investment
trusts, unit trusts, offshore funds, charities and private
clients.
Past performance is no assurance of future results. Investment
return and market value of an investment in a Fund will fluctuate.
Shares, when sold, may be worth more or less than their original
cost. There can be no assurance that a Fund’s investment objectives
will be achieved. The Funds may not be appropriate for all
investors.
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First Trust Advisors L.P. Jeff Margolin 630-915-6784
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