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WHEATON, Ill .– (BUSINESS WIRE) – First Trust / Aberdeen Emerging Opportunity Fund (the “Fund” (NYSE: FEO) has declared a long-term capital gain distribution of $ 0.35 per share. will be payable on December 31, 2021 to shareholders of record on December 23, 2021. The ex-dividend date is expected to be December 22, 2021. Information on the quarterly distribution of the Fund is provided below.
First Trust / Aberdeen Emerging Opportunity Fund (FEO):
Breakdown per share:
Distribution rate based on the December 10, 2021 net asset value of $ 14.33:
Payout rate based on the closing market price of December 10, 2021 of $ 14.05:
This distribution will be paid out of the realized long-term capital gains as indicated above. The final determination of the source and tax status of all distributions paid in 2021 will be made after the end of 2021 and will be provided on Form 1099-DIV.
The Fund is a 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 equities and fixed income securities of issuers in emerging countries.
First Trust Advisors LP (“FTA”) is a federally registered investment advisor and acts as the investment advisor of the Fund. FTA and its affiliate First Trust Portfolios LP (“FTP”), a brokerage firm registered with FINRA, are private companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $ 216 billion as of November 30, 2021 through mutual funds, exchange-traded funds, closed-end funds, mutual funds and managed accounts distinct. FTA is the supervisor of the First Trust mutual funds, while FTP is the sponsor. FTP is also a distributor of UCITS units and exchange-traded fund creation units. FTA and FTP are based in Wheaton, Illinois.
Aberdeen Standard Investments Inc. (“ASII”) acts as the investment sub-advisor of the Fund. ASII is an indirect wholly owned subsidiary of abrdn plc, formerly Standard Life Aberdeen plc. Aberdeen Standard Investments is the brand of the asset management group of abrdn plc, managing approximately $ 630.74 billion in assets as of June 30, 2021, for a range of pension funds, financial institutions, investment funds, mutual funds, offshore funds, charities and private clients.
Past performance is no guarantee of future results. Investment returns and the market value of an investment in the Fund fluctuate. Shares, once 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 suitable for all investors.
Main risk factors: The securities held by a fund, as well as the shares of a fund itself, are subject to market fluctuations caused by factors such as general economic conditions, political events, regulatory or market developments. market, changes in interest rates and perceived trends in securities prices. The shares of a fund could lose value or underperform other investments because of the risk of loss associated with these market movements. In addition, local, regional or global events such as war, acts of terrorism, the spread of infectious diseases or other public health issues, recessions or other events could have a significant negative impact on a person. funds and its investments. Such events can affect some geographies, countries, sectors and industries more significantly than others. The respiratory disease outbreak known as COVID-19 in December 2019 caused significant volatility and declines in global financial markets, resulting in losses for investors. While vaccine development has slowed the spread of the virus and allowed the resumption of “reasonably” normal business activity in the United States, many countries continue to impose lockdowns in an attempt to slow the spread. In addition, there is no guarantee that the vaccines will be effective against emerging variants of the disease.
Shares of closed-end investment companies such as the Fund frequently trade at a discount to their net asset value. The Fund cannot predict whether its common shares will trade at, below or above NAV.
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 will decline for a number of reasons directly related to the issuer. Reinvestment risk is the risk that the income of the Fund’s portfolio will decline if the Fund invests the proceeds of matured, traded or called bonds at market interest rates lower than the current rate of income of the Fund’s portfolio. Prepayment risk is the risk that, upon prepayment, the actual outstanding debt on which the Fund earns 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 drop accordingly. Interest rate risk is the risk that fixed income securities will lose value because of changes in market interest rates.
Asset-backed securities are subject to credit risk, expansion risk, interest rate risk, liquidity risk, prepayment risk and valuation risk, as well as credit risk. default on the underlying assets.
The value of the shares of the Fund will fluctuate according to changes in the value of the equity securities in which the Fund invests. The prices of equity securities fluctuate for several reasons.
The Fund invests in lower quality debt securities, commonly referred to as “high yield securities”. High yield securities are subject to greater market fluctuations and risk of loss than securities with higher credit ratings. Lower quality debt tends to be less liquid than higher quality debt.
Credit ratings are determined by rating agencies and are solely the opinions of those entities. Ratings assigned by a rating agency are not absolute standards of credit quality and do not assess market risk or the liquidity of the securities.
Credit default swaps involve greater risk than if the Fund had invested directly in the reference obligation.
Credit-related ratings are securities that are collateralized by one or more credit default swaps on designated debt securities, called “reference securities”. The credit bond market can suddenly become illiquid. Changes in liquidity can cause large, rapid and unpredictable changes in the prices of credit-linked bonds. In some cases, a market price for a credit note may not be available.
The Fund invests in equity securities and debt securities of non-US issuers which are subject to higher volatility than securities of US issuers. Risks may be increased for securities of companies located or having significant activities in emerging market countries. Financial and other reports from businesses and government entities may also be less reliable in emerging markets. Shareholder claims available in the United States, as well as the regulatory oversight and authority that is common in the United States, including for fraud-based claims, may be difficult or impossible for shareholders of securities to pursue in the United States. emerging countries or for the American authorities. Since the Fund invests in non-US securities, you could lose money if the local currency of a non-US market depreciates against the US dollar. In addition to the risks associated with investing in non-US securities generally, the Fund is subject to certain risks specifically associated with investing in securities of Chinese issuers.
Foreign exchange forward contracts involve certain risks, including the risk that the counterparty will not perform its obligations under the contract and the risk that the use of forward contracts will not serve as a full hedge due to a imperfect correlation between fluctuations in contract prices and the prices of the hedged currencies.
The Fund may from time to time invest a significant portion of its assets in issuers located in a single country or region. Since the Fund can concentrate its investments in this way, it assumes the risk that the economic, political and social conditions in that country or region will have a significant impact on its investment performance, which may lead to losses and loss. greater volatility than if it had diversified its investments across more countries and regions.
To the extent that a fund invests in floating or variable rate bonds which use the London Interbank Offered Rate (“LIBOR”) as the benchmark interest rate, it is subject to LIBOR risk. The UK’s Financial Conduct Authority, which regulates LIBOR, will stop offering LIBOR as a benchmark rate over a phase-out period that will begin immediately after December 31, 2021. Unavailability or replacement of LIBOR may affect value. , liquidity or return on some of the fund’s investments and may incur costs associated with closing positions and entering into new transactions. The potential effects of leaving LIBOR on the fund or on certain instruments in which the fund invests may be difficult to determine, and they may vary depending on various factors, and they may result in losses for the fund.
The use of leverage can lead to additional risks and costs and can magnify the effect of any loss.
The risks associated with investing in the Fund are described in the report to shareholders and other regulatory documents.
The information presented is not intended to constitute an investment recommendation or advice to any particular person. By providing this information, First Trust does not undertake to give advice in a fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for independently assessing investment risks and exercising independent judgment in determining whether investments are appropriate for their clients.
The Fund’s daily closing price on the New York Stock Exchange and net asset value per share along with other information is available at https://www.ftportfolios.com or by calling 1-800-988-5891.
Press Information: Ryan Issakainen, 630-765-8689
Analyst Information: Jeff Margolin, 630 915-6784
Broker Information: Sales Team, 866-848-9727
Source: First Trust / Aberdeen Emerging Opportunity Fund