First Trust/abrdn Emerging Opportunity Fund (FEO)

The First Trust/abrdn Emerging Opportunity Fund was a closed-end fund that invested in emerging market stocks and bonds, including sovereign and corporate debt issued in both local currencies and U.S. dollars. First Trust Advisors served as investment adviser, while Aberdeen, later renamed abrdn, managed the portfolio. The fund aimed to provide total return through a mix of income and capital appreciation.

The fund listed on the New York Stock Exchange in 2006 under the symbol FEO and was originally named First Trust/Aberdeen Emerging Opportunity Fund. Like many closed-end funds it used leverage to boost income and often traded at a discount to its net asset value. Its name changed after Aberdeen Standard Investments rebranded as abrdn. Its investment period spanned the commodity boom and later slowdowns in developing markets.

Assets in the fund shrank over the years as emerging market returns lagged and investors moved toward cheaper exchange-traded funds. With a small asset base and a persistent discount, the board concluded that continuing to operate the fund no longer served shareholders well. Trading volume was thin, and the gap between the market price and the value of the portfolio persisted for long periods despite buybacks and distribution policies.

In September 2022 the board approved a plan to liquidate. The fund was terminated after the close of business on December 7, 2022, and shareholders of record on December 5, 2022 received a cash distribution of $9.635572 per share, equal to its net asset value. The shares were removed from the NYSE as part of the wind-down. First Trust continued to sponsor other closed-end funds.