First Trust
High Yield Opportunities 2027 Term Fund (FTHY)
Semi-Annual Report
For the Six Months Ended
November 30, 2025
 
 
 
Table of Contents
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Semi-Annual Report
November 30, 2025 
Performance and Risk Disclosure
There is no assurance that the Fund will achieve its investment objective. 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.
First Trust Advisors L.P., the Fund’s 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.
The statistical information that follows may help you understand the Fund’s performance compared to that of a relevant market benchmark.
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.
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
“AT A GLANCE”
As of November 30, 2025 (Unaudited)
 
Fund Statistics
Symbol on New York Stock Exchange
FTHY
Common Share Price
$14.22
Common Share Net Asset Value (“NAV”)
$14.95
Premium (Discount) to NAV
(4.88
)%
Net Assets Applicable to Common Shares
$549,593,328
Current Distribution per Common Share(1)
$0.1250
Current Annualized Distribution per Common Share
$1.5000
Current Distribution Rate on Common Share Price(2)
10.55
%
Current Distribution Rate on NAV(2)
10.03
%
Common Share Price & NAV (weekly closing price)
  
 
Performance
 
 
 
 
 
 
 
Average Annual
Total Returns
 
6 Months
Ended
11/30/25
1 Year
Ended
11/30/25
5 Years
Ended
11/30/25
Inception
(6/25/20)
to 11/30/25
Fund Performance(3)
NAV
4.78
%
7.45
%
3.00
%
4.25
%
Market Value
4.02
%
5.63
%
3.37
%
3.29
%
Index Performance
ICE BofA US High Yield Constrained Index
4.99
%
7.32
%
4.75
%
5.97
%
 
(1)
Most recent distribution paid through November 30, 2025. Subject to change in the future.
(2)
Distribution rates are calculated by annualizing the most recent distribution paid through the report date and then dividing by Common Share Price or NAV, as applicable, as of November 30, 2025. 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. Performance figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Past performance is not indicative of future results.
Page 1
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
“AT A GLANCE” (Continued)
As of November 30, 2025 (Unaudited)
 
Credit Quality (S&P Global Ratings)(4)
% of Total
Investments
BBB-
2.1%
BB+
8.3
BB
14.9
BB-
13.4
B+
10.8
B
23.3
B-
10.3
CCC+
10.4
CCC
3.4
Not Rated
2.8
Money Market Funds
0.3
Total
100.0%
 
Top 10 Issuers
% of Total
Investments
Alliant Holdings Intermediate LLC / Alliant Holdings
Co-Issuer
2.5%
CRC Insurance Group (f/k/a Truist Insurance)
2.1
Graham Packaging Co., Inc.
2.0
1011778 BC ULC / New Red Finance, Inc.
1.9
Builders FirstSource, Inc.
1.7
Lightning Power LLC
1.6
Hub International Ltd.
1.5
Post Holdings, Inc.
1.5
US Foods, Inc.
1.4
Cloud Software Group, Inc.
1.3
Total
17.5%
 
Industry Classification
% of Total
Investments
Insurance
14.2%
Software
9.6
Media
6.3
Hotels, Restaurants & Leisure
5.4
Health Care Providers & Services
5.2
Containers & Packaging
4.6
IT Services
4.3
Commercial Services & Supplies
4.3
Trading Companies & Distributors
3.6
Food Products
3.3
Oil, Gas & Consumable Fuels
3.3
Building Products
3.0
Professional Services
2.5
Life Sciences Tools & Services
2.3
Aerospace & Defense
2.1
Independent Power & Renewable Electricity Producers
2.0
Interactive Media & Services
1.8
Health Care Technology
1.7
Financial Services
1.7
Consumer Staples Distribution & Retail
1.5
Construction Materials
1.4
Specialty Retail
1.3
Health Care Equipment & Supplies
1.3
Construction & Engineering
1.2
Machinery
1.2
Consumer Finance
1.0
Capital Markets
0.9
Electric Utilities
0.8
Diversified Consumer Services
0.8
Real Estate Management & Development
0.8
Household Products
0.8
Diversified Telecommunication Services
0.7
Ground Transportation
0.7
Household Durables
0.6
Automobiles
0.5
Air Freight & Logistics
0.5
Textiles, Apparel & Luxury Goods
0.5
Electronic Equipment, Instruments & Components
0.4
Automobile Components
0.4
Entertainment
0.4
Money Market Funds
0.3
Technology Hardware, Storage & Peripherals
0.2
Paper & Forest Products
0.2
Metals & Mining
0.1
Leisure Products
0.1
Beverages
0.1
Wireless Telecommunication Services
0.1
Chemicals
0.0*
Electrical Equipment
0.0*
Pharmaceuticals
0.0*
Total
100.0%
* Amount is less than 0.1%
 
(4)
The ratings are by S&P Global Ratings except where otherwise indicated. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO) of the creditworthiness of an issuer with respect to debt obligations except for those debt obligations that are only privately rated. Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). Investment grade is defined as those issuers that have a long-term credit rating of BBB- or higher. The credit ratings shown relate to the creditworthiness of the issuers of the underlying securities in the Fund, and not to the Fund or its shares. Credit ratings are subject to change.
Page 2
Portfolio Management
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Semi-Annual Report
November 30, 2025 (Unaudited)
Advisor
The First Trust Advisors L.P. (“First Trust”) Leveraged Finance Team is comprised of 20 experienced investment professionals specializing in below investment grade securities. The team is comprised of portfolio management, research, trading and operations personnel. As of November 30, 2025, the First Trust Leveraged Finance Team managed or supervised approximately $7.3 billion in senior secured bank loans and high yield bonds. These assets are managed across various strategies, including two closed-end funds, an open-end fund, and five exchange-traded funds on behalf of retail and institutional clients.
Portfolio Management Team
William Housey, CFA – Managing Director of Fixed Income, Senior Portfolio Manager
Jeffrey Scott, CFA – Senior Vice President, Portfolio Manager
Kevin Ziets, CFA - Senior Vice President, Portfolio Manager
Page 3
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments
November 30, 2025 (Unaudited)
 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
CORPORATE BONDS AND NOTES (a) – 95.1%
Advertising – 0.7%
$1,827,000
Clear Channel Outdoor Holdings, Inc. (b)
7.75
%
04/15/28
$1,829,104
1,409,000
Clear Channel Outdoor Holdings, Inc. (b)
7.88
%
04/01/30
1,485,802
564,000
Clear Channel Outdoor Holdings, Inc. (b)
7.13
%
02/15/31
587,475
 
3,902,381
Aerospace & Defense – 1.5%
316,000
Amentum Holdings, Inc. (b)
7.25
%
08/01/32
331,944
420,000
Axon Enterprise, Inc. (b)
6.13
%
03/15/30
433,973
280,000
Axon Enterprise, Inc. (b)
6.25
%
03/15/33
291,405
280,000
Carpenter Technology Corp. (b)
5.63
%
03/01/34
284,929
58,000
Spirit Aerosystems, Inc. (b)
9.38
%
11/30/29
60,982
2,281,000
TransDigm, Inc. (b)
6.63
%
03/01/32
2,373,661
754,000
TransDigm, Inc. (b)
6.00
%
01/15/33
771,598
3,665,000
TransDigm, Inc. (b)
6.38
%
05/31/33
3,765,773
 
8,314,265
Alternative Carriers – 0.7%
3,646,000
Level 3 Financing, Inc. (b)
7.00
%
03/31/34
3,737,788
Apparel Retail – 0.3%
500,000
Nordstrom, Inc.
4.00
%
03/15/27
494,863
1,146,000
Nordstrom, Inc.
4.38
%
04/01/30
1,082,952
 
1,577,815
Apparel, Accessories & Luxury Goods – 0.7%
2,934,000
Hanesbrands, Inc. (b)
9.00
%
02/15/31
3,101,162
567,000
Under Armour, Inc. (b)
7.25
%
07/15/30
566,049
 
3,667,211
Application Software – 5.8%
1,831,000
Cloud Software Group, Inc. (b)
6.50
%
03/31/29
1,847,345
4,113,000
Cloud Software Group, Inc. (b)
9.00
%
09/30/29
4,246,932
2,879,000
Cloud Software Group, Inc. (b)
8.25
%
06/30/32
3,037,944
548,000
Cloud Software Group, Inc. (b)
6.63
%
08/15/33
547,556
3,371,000
Ellucian Holdings, Inc. (b)
6.50
%
12/01/29
3,425,455
2,445,875
GoTo Group, Inc. (b) (c)
5.50
%
05/01/28
880,515
3,000,000
McAfee Corp. (b)
7.38
%
02/15/30
2,621,209
1,513,000
Open Text Holdings, Inc. (b)
4.13
%
12/01/31
1,408,413
6,464,000
RingCentral, Inc. (b)
8.50
%
08/15/30
6,884,587
6,521,000
UKG, Inc. (b)
6.88
%
02/01/31
6,737,425
 
31,637,381
Asset Management & Custody Banks – 0.4%
1,505,000
Osaic Holdings, Inc. (b)
6.75
%
08/01/32
1,563,009
566,000
Osaic Holdings, Inc. (b)
8.00
%
08/01/33
583,391
 
2,146,400
Automobile Manufacturers – 0.7%
3,369,000
Ford Motor Co.
9.63
%
04/22/30
3,914,140
Automotive Retail – 0.4%
2,341,000
Mavis Tire Express Services Topco Corp. (b)
6.50
%
05/15/29
2,323,107
Broadcasting – 3.1%
2,974,000
Gray Television, Inc. (b)
4.75
%
10/15/30
2,297,733
1,688,000
iHeartCommunications, Inc. (b)
4.75
%
01/15/28
1,536,983
See Notes to Financial Statements
Page 4
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
November 30, 2025 (Unaudited)
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
CORPORATE BONDS AND NOTES (a) (Continued)
Broadcasting (Continued)
$5,067,000
Nexstar Media, Inc. (b)
5.63
%
07/15/27
$5,074,798
1,645,000
Sinclair Television Group, Inc. (b)
8.13
%
02/15/33
1,715,093
6,614,000
TEGNA, Inc.
4.63
%
03/15/28
6,558,911
 
17,183,518
Building Products – 3.7%
1,414,000
Advanced Drainage Systems, Inc. (b)
6.38
%
06/15/30
1,443,806
2,241,000
Builders FirstSource, Inc. (b)
6.38
%
03/01/34
2,333,703
9,304,000
Builders FirstSource, Inc. (b)
6.75
%
05/15/35
9,824,494
1,848,000
CP Atlas Buyer, Inc. (b)
9.75
%
07/15/30
1,871,113
848,000
LBM Acquisition LLC (b)
9.50
%
06/15/31
875,110
1,622,000
Standard Building Solutions, Inc. (b)
6.50
%
08/15/32
1,674,682
999,000
Standard Building Solutions, Inc. (b)
6.25
%
08/01/33
1,025,359
574,000
Standard Industries, Inc. (b)
4.75
%
01/15/28
572,886
858,000
Standard Industries, Inc. (b)
4.38
%
07/15/30
832,653
 
20,453,806
Cable & Satellite – 4.2%
1,567,000
CCO Holdings LLC / CCO Holdings Capital Corp. (b)
6.38
%
09/01/29
1,592,011
1,184,000
CCO Holdings LLC / CCO Holdings Capital Corp. (b)
4.75
%
03/01/30
1,128,698
1,953,000
CCO Holdings LLC / CCO Holdings Capital Corp. (b)
4.50
%
08/15/30
1,831,704
3,219,000
CCO Holdings LLC / CCO Holdings Capital Corp. (b)
7.38
%
03/01/31
3,286,519
250,000
CSC Holdings LLC (b)
3.38
%
02/15/31
139,078
7,469,000
CSC Holdings LLC (b)
4.50
%
11/15/31
4,230,744
7,058,000
DISH Network Corp. (b)
11.70
%
11/15/27
7,375,928
3,290,537
EchoStar Corp.
10.70
%
11/30/29
3,630,910
 
23,215,592
Casinos & Gaming – 2.7%
1,438,000
Boyd Gaming Corp. (b)
4.75
%
06/15/31
1,402,133
1,999,000
Caesars Entertainment, Inc. (b)
4.63
%
10/15/29
1,893,251
2,299,000
Caesars Entertainment, Inc. (b)
6.00
%
10/15/32
2,195,293
3,891,000
Fertitta Entertainment LLC / Fertitta Entertainment Finance Co.,
Inc. (b)
6.75
%
01/15/30
3,631,804
1,163,000
Light & Wonder International, Inc. (b)
7.50
%
09/01/31
1,219,392
1,812,000
Scientific Games Holdings, L.P. / Scientific Games US Finance
Co., Inc. (b)
6.63
%
03/01/30
1,601,300
2,286,000
Station Casinos LLC (b)
4.50
%
02/15/28
2,263,833
408,000
Station Casinos LLC (b)
4.63
%
12/01/31
386,439
 
14,593,445
Commercial & Residential Mortgage Finance – 2.0%
559,000
Freedom Mortgage Holdings LLC (b)
9.25
%
02/01/29
586,500
1,881,000
Freedom Mortgage Holdings LLC (b)
9.13
%
05/15/31
2,015,042
2,254,000
PennyMac Financial Services, Inc. (b)
6.75
%
02/15/34
2,324,681
1,100,000
Rocket Cos, Inc. (b)
7.13
%
02/01/32
1,157,818
1,878,000
Rocket Cos, Inc. (b)
6.38
%
08/01/33
1,968,929
3,092,000
UWM Holdings LLC (b)
6.25
%
03/15/31
3,107,696
 
11,160,666
Commercial Printing – 0.2%
1,440,000
LABL, Inc. (b)
8.63
%
10/01/31
880,735
Construction & Engineering – 1.6%
1,000,000
AECOM (b)
6.00
%
08/01/33
1,028,715
See Notes to Financial Statements
Page 5
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
November 30, 2025 (Unaudited)
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
CORPORATE BONDS AND NOTES (a) (Continued)
Construction & Engineering (Continued)
$3,855,000
Pike Corp. (b)
5.50
%
09/01/28
$3,847,772
2,633,000
Pike Corp. (b)
8.63
%
01/31/31
2,785,267
273,000
Williams Scotsman, Inc. (b)
6.63
%
04/15/30
282,113
840,000
Williams Scotsman, Inc. (b)
7.38
%
10/01/31
875,603
 
8,819,470
Construction Materials – 1.7%
1,529,000
JH North America Holdings, Inc. (b)
6.13
%
07/31/32
1,568,512
4,953,000
Quikrete Holdings, Inc. (b)
6.75
%
03/01/33
5,161,556
2,551,000
Smyrna Ready Mix Concrete LLC (b)
8.88
%
11/15/31
2,709,721
 
9,439,789
Consumer Finance – 1.3%
559,000
Bread Financial Holdings, Inc. (b)
6.75
%
05/15/31
571,373
560,000
EZCORP, Inc. (b)
7.38
%
04/01/32
588,478
3,056,000
FirstCash, Inc. (b)
4.63
%
09/01/28
3,028,297
2,904,000
FirstCash, Inc. (b)
6.88
%
03/01/32
3,023,189
 
7,211,337
Data Processing & Outsourced Services – 0.3%
843,000
Block, Inc. (b)
5.63
%
08/15/30
859,581
562,000
Block, Inc. (b)
6.00
%
08/15/33
578,026
 
1,437,607
Diversified Metals & Mining – 0.2%
570,000
SCIH Salt Holdings, Inc. (b)
4.88
%
05/01/28
567,923
300,000
SCIH Salt Holdings, Inc. (b)
6.63
%
05/01/29
301,566
 
869,489
Diversified Support Services – 0.5%
901,000
RB Global Holdings, Inc. (b)
6.75
%
03/15/28
923,584
1,978,000
RB Global Holdings, Inc. (b)
7.75
%
03/15/31
2,075,600
 
2,999,184
Electric Utilities – 1.1%
1,278,000
Alpha Generation LLC (b)
6.75
%
10/15/32
1,316,300
3,902,000
Alpha Generation LLC (b)
6.25
%
01/15/34
3,910,815
641,000
Vistra Operations Co. LLC (b)
7.75
%
10/15/31
681,265
 
5,908,380
Electrical Components & Equipment – 0.1%
333,000
Sensata Technologies, Inc. (b)
3.75
%
02/15/31
311,859
Environmental & Facilities Services – 1.4%
1,196,000
Allied Universal Holdco LLC (b)
7.88
%
02/15/31
1,260,198
1,956,000
Allied Universal Holdco LLC / Allied Universal Finance Corp. (b)
6.88
%
06/15/30
2,023,411
568,000
Clean Harbors, Inc. (b)
5.75
%
10/15/33
580,971
2,949,000
Waste Pro USA, Inc. (b)
7.00
%
02/01/33
3,074,642
618,000
Wrangler Holdco Corp. (b)
6.63
%
04/01/32
649,880
 
7,589,102
Fertilizers & Agricultural Chemicals – 0.1%
338,000
Scotts Miracle-Gro Co. (The)
4.38
%
02/01/32
316,973
Food Distributors – 1.8%
603,000
US Foods, Inc. (b)
4.75
%
02/15/29
600,849
See Notes to Financial Statements
Page 6
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
November 30, 2025 (Unaudited)
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
CORPORATE BONDS AND NOTES (a) (Continued)
Food Distributors (Continued)
$5,250,000
US Foods, Inc. (b)
4.63
%
06/01/30
$5,186,710
2,078,000
US Foods, Inc. (b)
7.25
%
01/15/32
2,191,987
2,079,000
US Foods, Inc. (b)
5.75
%
04/15/33
2,121,617
 
10,101,163
Forest Products – 0.2%
1,295,000
Magnera Corp. (b)
7.25
%
11/15/31
1,237,139
Health Care Facilities – 1.7%
4,445,000
AHP Health Partners, Inc. (b)
5.75
%
07/15/29
4,365,243
309,000
Concentra Health Services, Inc. (b)
6.88
%
07/15/32
323,902
3,722,000
Select Medical Corp. (b)
6.25
%
12/01/32
3,699,690
690,000
Tenet Healthcare Corp (b)
5.50
%
11/15/32
701,386
280,000
Tenet Healthcare Corp (b)
6.00
%
11/15/33
289,298
 
9,379,519
Health Care Services – 1.8%
5,260,000
Raven Acquisition Holdings LLC (b)
6.88
%
11/15/31
5,420,388
4,130,000
Surgery Center Holdings, Inc. (b)
7.25
%
04/15/32
4,243,443
 
9,663,831
Health Care Supplies – 1.7%
5,020,000
Medline Borrower, L.P. (b)
3.88
%
04/01/29
4,876,982
4,488,000
Medline Borrower, L.P. (b)
5.25
%
10/01/29
4,502,523
 
9,379,505
Health Care Technology – 1.2%
6,527,000
AthenaHealth Group, Inc. (b)
6.50
%
02/15/30
6,488,506
Homebuilding – 0.2%
1,286,000
Dream Finders Homes, Inc. (b)
6.88
%
09/15/30
1,297,124
Homefurnishing Retail – 0.1%
282,000
Wayfair LLC (b)
6.75
%
11/15/32
288,445
Hotels, Resorts & Cruise Lines – 0.2%
284,000
RHP Hotel Properties L.P. / RHP Finance Corp. (b)
6.50
%
06/15/33
295,334
937,000
Vail Resorts, Inc. (b)
6.50
%
05/15/32
974,652
 
1,269,986
Household Products – 1.0%
1,746,000
Energizer Holdings, Inc. (b)
4.75
%
06/15/28
1,726,294
4,009,000
Energizer Holdings, Inc. (b)
4.38
%
03/31/29
3,819,134
 
5,545,428
Housewares & Specialties – 0.4%
426,000
Newell Brands, Inc. (b)
8.50
%
06/01/28
444,521
2,146,000
Newell Brands, Inc.
6.63
%
05/15/32
2,026,129
 
2,470,650
Human Resource & Employment Services – 1.3%
3,756,000
TriNet Group, Inc. (b)
7.13
%
08/15/31
3,899,633
4,115,000
ZipRecruiter, Inc. (b)
5.00
%
01/15/30
3,340,612
 
7,240,245
Independent Power Producers & Energy Traders – 2.6%
10,952,000
Lightning Power LLC (b)
7.25
%
08/15/32
11,631,035
See Notes to Financial Statements
Page 7
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
November 30, 2025 (Unaudited)
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
CORPORATE BONDS AND NOTES (a) (Continued)
Independent Power Producers & Energy Traders (Continued)
$841,000
Talen Energy Supply LLC (b)
6.25
%
02/01/34
$857,441
1,686,000
Talen Energy Supply LLC (b)
6.50
%
02/01/36
1,744,184
 
14,232,660
Industrial Machinery & Supplies & Components – 0.8%
752,000
Gates Corp. (The) (b)
6.88
%
07/01/29
784,613
2,161,000
Madison IAQ LLC (b)
5.88
%
06/30/29
2,138,987
1,175,000
SPX FLOW, Inc. (b)
8.75
%
04/01/30
1,208,633
 
4,132,233
Insurance Brokers – 11.9%
6,702,000
Acrisure LLC / Acrisure Finance, Inc. (b)
7.50
%
11/06/30
6,964,665
1,750,000
Acrisure LLC / Acrisure Finance, Inc. (b)
6.75
%
07/01/32
1,793,932
7,065,000
Alliant Holdings Intermediate LLC / Alliant Holdings
Co-Issuer (b)
6.75
%
10/15/27
7,093,825
7,588,000
Alliant Holdings Intermediate LLC / Alliant Holdings
Co-Issuer (b)
6.75
%
04/15/28
7,732,635
210,000
Alliant Holdings Intermediate LLC / Alliant Holdings
Co-Issuer (b)
5.88
%
11/01/29
208,401
2,112,000
Alliant Holdings Intermediate LLC / Alliant Holdings
Co-Issuer (b)
6.50
%
10/01/31
2,175,286
603,000
Alliant Holdings Intermediate LLC / Alliant Holdings
Co-Issuer (b)
7.38
%
10/01/32
624,150
3,710,000
AmWINS Group, Inc. (b)
6.38
%
02/15/29
3,814,826
3,035,000
AmWINS Group, Inc. (b)
4.88
%
06/30/29
2,962,902
7,764,000
Baldwin Insurance Group Holdings LLC / Baldwin Insurance
Group Holdings Finance (b)
7.13
%
05/15/31
8,066,827
2,092,000
BroadStreet Partners, Inc. (b)
5.88
%
04/15/29
2,090,406
4,075,000
HUB International Ltd. (b)
5.63
%
12/01/29
4,091,890
4,625,000
HUB International Ltd. (b)
7.38
%
01/31/32
4,815,217
8,880,000
Panther Escrow Issuer LLC (b)
7.13
%
06/01/31
9,189,882
3,711,000
Ryan Specialty LLC (b)
5.88
%
08/01/32
3,796,505
 
65,421,349
Integrated Telecommunication Services – 0.1%
568,000
Windstream Services LLC (b)
7.50
%
10/15/33
578,582
Interactive Media & Services – 1.3%
2,101,000
Cars.com, Inc. (b)
6.38
%
11/01/28
2,108,099
400,000
Snap, Inc. (b)
6.88
%
03/01/33
412,482
4,220,000
Snap, Inc. (b)
6.88
%
03/15/34
4,324,243
584,000
ZoomInfo Technologies LLC / ZoomInfo Finance Corp. (b)
3.88
%
02/01/29
553,477
 
7,398,301
Internet Services & Infrastructure – 1.1%
280,000
Cipher Compute LLC (b)
7.13
%
11/15/30
284,813
4,210,000
Go Daddy Operating Co. LLC / GD Finance Co., Inc. (b)
5.25
%
12/01/27
4,214,036
1,674,000
Wulf Compute LLC (b)
7.75
%
10/15/30
1,732,122
 
6,230,971
Investment Banking & Brokerage – 0.6%
923,000
Jane Street Group / JSG Finance, Inc. (b)
6.13
%
11/01/32
939,749
2,143,000
Jane Street Group / JSG Finance, Inc. (b)
6.75
%
05/01/33
2,243,087
 
3,182,836
See Notes to Financial Statements
Page 8
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
November 30, 2025 (Unaudited)
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
CORPORATE BONDS AND NOTES (a) (Continued)
IT Consulting & Other Services – 0.9%
$282,000
CACI International, Inc. (b)
6.38
%
06/15/33
$294,339
4,462,000
Shift4 Payments LLC / Shift4 Payments Finance Sub, Inc. (b)
6.75
%
08/15/32
4,644,884
 
4,939,223
Leisure Facilities – 0.5%
876,000
Life Time, Inc. (b)
6.00
%
11/15/31
895,612
283,000
SeaWorld Parks & Entertainment, Inc. (b)
5.25
%
08/15/29
273,962
586,000
Six Flags Entertainment Corp. (b)
7.25
%
05/15/31
559,193
1,193,000
Six Flags Entertainment Corp. / Six Flags Theme Parks, Inc. /
Canada’s Wonderland Co. (b)
6.63
%
05/01/32
1,191,064
 
2,919,831
Leisure Products – 0.1%
611,000
Amer Sports Co. (b)
6.75
%
02/16/31
637,632
Life Sciences Tools & Services – 2.6%
3,153,000
Avantor Funding, Inc. (b)
4.63
%
07/15/28
3,125,743
3,000,000
Charles River Laboratories International, Inc. (b)
3.75
%
03/15/29
2,896,938
1,483,000
Charles River Laboratories International, Inc. (b)
4.00
%
03/15/31
1,404,229
1,451,000
Fortrea Holdings, Inc. (b)
7.50
%
07/01/30
1,458,334
2,802,000
IQVIA, Inc. (b)
6.50
%
05/15/30
2,917,305
2,318,000
Star Parent, Inc. (b)
9.00
%
10/01/30
2,487,098
 
14,289,647
Managed Health Care – 1.3%
2,000,000
Molina Healthcare, Inc. (b)
3.88
%
11/15/30
1,849,485
2,076,000
Molina Healthcare, Inc. (b)
3.88
%
05/15/32
1,873,058
3,396,000
Molina Healthcare, Inc. (b)
6.25
%
01/15/33
3,406,297
 
7,128,840
Movies & Entertainment – 0.5%
3,812,000
Warner Media Holdings, Inc.
5.14
%
03/15/52
2,860,906
Oil & Gas Refining & Marketing – 2.9%
2,079,000
Sunoco L.P. (b)
5.63
%
03/15/31
2,092,127
5,056,000
Sunoco L.P. (b)
5.88
%
03/15/34
5,092,009
2,688,000
Venture Global LNG, Inc. (b)
8.38
%
06/01/31
2,696,440
5,940,000
Venture Global LNG, Inc. (b)
9.88
%
02/01/32
6,188,037
 
16,068,613
Oil & Gas Storage & Transportation – 1.4%
280,000
Rockies Express Pipeline LLC (b)
6.75
%
03/15/33
294,122
5,143,000
Venture Global Plaquemines LNG LLC (b)
7.50
%
05/01/33
5,607,495
1,439,000
Venture Global Plaquemines LNG LLC (b)
6.50
%
01/15/34
1,489,305
286,000
Venture Global Plaquemines LNG LLC (b)
7.75
%
05/01/35
318,828
 
7,709,750
Other Specialty Retail – 0.2%
690,000
PetSmart LLC / PetSmart Finance Corp. (b)
7.50
%
09/15/32
697,009
563,000
PetSmart LLC / PetSmart Finance Corp. (b)
10.00
%
09/15/33
577,087
 
1,274,096
Packaged Foods & Meats – 3.6%
1,002,000
BellRing Brands, Inc. (b)
7.00
%
03/15/30
1,034,608
1,198,000
Fiesta Purchaser, Inc. (b)
7.88
%
03/01/31
1,261,669
1,506,000
Fiesta Purchaser, Inc. (b)
9.63
%
09/15/32
1,616,668
See Notes to Financial Statements
Page 9
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
November 30, 2025 (Unaudited)
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
CORPORATE BONDS AND NOTES (a) (Continued)
Packaged Foods & Meats (Continued)
$2,154,000
Lamb Weston Holdings, Inc. (b)
4.38
%
01/31/32
$2,063,778
3,312,000
Performance Food Group, Inc. (b)
6.13
%
09/15/32
3,411,499
7,308,000
Post Holdings, Inc. (b)
6.25
%
02/15/32
7,555,135
3,018,000
Post Holdings, Inc. (b)
6.38
%
03/01/33
3,062,262
 
20,005,619
Paper & Plastic Packaging Products & Materials – 4.1%
561,000
Graham Holdings Co (b)
5.63
%
12/01/33
563,062
14,125,000
Graham Packaging Co., Inc. (b)
7.13
%
08/15/28
14,145,034
3,239,000
Graphic Packaging International LLC (b)
3.75
%
02/01/30
3,070,166
1,923,000
Graphic Packaging International LLC (b)
6.38
%
07/15/32
1,957,911
2,070,000
Sealed Air Corp. / Sealed Air Corp. US (b)
6.13
%
02/01/28
2,106,459
566,000
Sealed Air Corp. / Sealed Air Corp. US (b)
5.00
%
04/15/29
570,377
 
22,413,009
Passenger Ground Transportation – 0.4%
2,126,000
Avis Budget Car Rental LLC / Avis Budget Finance, Inc. (b)
8.25
%
01/15/30
2,191,239
Rail Transportation – 0.5%
2,466,000
Genesee & Wyoming, Inc. (b)
6.25
%
04/15/32
2,538,804
Real Estate Operating Companies – 0.8%
700,000
Service Properties Trust
5.50
%
12/15/27
686,222
3,693,000
Service Properties Trust
8.88
%
06/15/32
3,560,188
 
4,246,410
Real Estate Services – 0.2%
737,000
Cushman & Wakefield US Borrower LLC (b)
8.88
%
09/01/31
790,808
562,000
Taylor Morrison Communities, Inc. (b)
5.75
%
11/15/32
579,617
 
1,370,425
Research & Consulting Services – 1.5%
2,426,000
Clarivate Science Holdings Corp. (b)
3.88
%
07/01/28
2,351,226
3,371,000
Clarivate Science Holdings Corp. (b)
4.88
%
07/01/29
3,188,813
342,000
CoreLogic, Inc. (b)
4.50
%
05/01/28
334,178
843,000
Neptune Bidsco US, Inc. (b)
9.29
%
04/15/29
839,841
1,125,000
Neptune Bidsco US, Inc. (b)
10.30
%
05/15/31
1,138,120
283,000
Science Applications International Corp. (b)
5.88
%
11/01/33
282,105
 
8,134,283
Restaurants – 0.1%
515,000
Brinker International, Inc. (b)
8.25
%
07/15/30
546,727
Security & Alarm Services – 0.7%
618,000
Brink’s Co. (The) (b)
6.50
%
06/15/29
639,122
2,999,000
Brink’s Co. (The) (b)
6.75
%
06/15/32
3,130,098
 
3,769,220
Soft Drinks & Non-alcoholic Beverages – 0.1%
560,000
Primo Water Holdings, Inc. / Triton Water Holdings, Inc. (b)
6.25
%
04/01/29
564,958
Specialized Consumer Services – 0.5%
2,441,000
Wand NewCo 3, Inc. (b)
7.63
%
01/30/32
2,574,286
Systems Software – 1.7%
3,636,000
Gen Digital, Inc. (b)
7.13
%
09/30/30
3,763,940
2,025,000
Gen Digital, Inc. (b)
6.25
%
04/01/33
2,088,848
See Notes to Financial Statements
Page 10
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
November 30, 2025 (Unaudited)
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
CORPORATE BONDS AND NOTES (a) (Continued)
Systems Software (Continued)
$1,697,000
SS&C Technologies, Inc. (b)
5.50
%
09/30/27
$1,698,297
1,643,000
SS&C Technologies, Inc. (b)
6.50
%
06/01/32
1,711,589
 
9,262,674
Technology Hardware, Storage & Peripherals – 0.3%
1,446,000
Fair Isaac Corp. (b)
6.00
%
05/15/33
1,489,886
Trading Companies & Distributors – 4.7%
574,000
EquipmentShare.com, Inc. (b)
9.00
%
05/15/28
586,574
2,536,000
EquipmentShare.com, Inc. (b)
8.00
%
03/15/33
2,587,293
2,443,000
Herc Holdings, Inc. (b)
7.25
%
06/15/33
2,588,185
1,450,379
PrimeSource Brands (a/k/a Park River Holdings, Inc.) (b)
8.75
%
12/31/30
1,410,494
568,000
PrimeSource Brands (a/k/a Park River Holdings, Inc.) (b)
8.00
%
03/15/31
587,254
6,731,000
QXO Building Products, Inc. (b)
6.75
%
04/30/32
7,046,118
281,000
Synergy Infrastructure Holdings LLC (b)
7.88
%
12/01/30
290,212
7,955,000
United Rentals North America, Inc. (b)
6.00
%
12/15/29
8,168,361
860,000
WESCO Distribution, Inc. (b)
6.38
%
03/15/33
902,274
1,719,000
White Cap Supply Holdings LLC (b)
7.38
%
11/15/30
1,754,519
 
25,921,284
Transaction & Payment Processing Services – 0.1%
638,000
Boost Newco Borrower LLC (b)
7.50
%
01/15/31
678,019
143,000
WEX, Inc. (b)
6.50
%
03/15/33
145,961
 
823,980
Total Corporate Bonds and Notes
522,831,255
(Cost $515,478,383)
Principal
Value
Description
Rate (d)
Stated
Maturity (e)
Value
SENIOR FLOATING-RATE LOAN INTERESTS (a) – 22.6%
Advertising – 0.3%
1,745,925
WH Borrower LLC (WHP), Term Loan B, 3 Mo. CME Term
SOFR + 4.50%, 0.50% Floor
8.39
%
02/20/32
1,750,831
Aerospace & Defense – 0.9%
1,557,177
Spirit AeroSystems, Inc., Term Loan B, 3 Mo. CME Term SOFR +
4.5%, 0.50% Floor
8.34
%
01/15/27
1,559,451
3,371,349
Vista Management Holding, Inc., Term Loan B, 3 Mo. CME Term
SOFR + 3.75%, 0.00% Floor
7.74
%
03/31/31
3,404,321
 
4,963,772
Air Freight & Logistics – 0.4%
2,299,408
Phoenix Aviation Capital Ltd., Term Loan B, 3 Mo. CME Term
SOFR + 3.25%, 0.00% Floor
7.11
%
10/28/30
2,281,449
Application Software – 4.3%
7,026,434
Darktrace PLC (Leia Finco US LLC), Second Lien Term Loan, 3
Mo. CME Term SOFR + 5.25%, 0.00% Floor
9.19
%
10/09/32
6,994,955
3,337,609
Internet Brands, Inc. (Web MD / MH Sub I. LLC), 2023 New
Term Loan B, 3 Mo. CME Term SOFR + 4.25%, 0.50% Floor
8.25
%
05/03/28
3,025,843
2,948,212
LogMeIn, Inc. (GoTo Group, Inc.), First Lien First Out TL, 3 Mo.
CME Term SOFR + CSA + 4.75%, 0.00% Floor
8.79
%
04/30/28
2,571,401
2,421,112
LogMeIn, Inc. (GoTo Group, Inc.), First Lien Second Out TL, 3
Mo. CME Term SOFR + CSA + 4.75%, 0.00% Floor (c)
8.79
%
04/30/28
968,094
See Notes to Financial Statements
Page 11
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
November 30, 2025 (Unaudited)
Principal
Value
Description
Rate (d)
Stated
Maturity (e)
Value
SENIOR FLOATING-RATE LOAN INTERESTS (a) (Continued)
Application Software (Continued)
$706,760
McAfee Corp. (Condor Merger Sub, Inc.), Term Loan B-1, 1 Mo.
CME Term SOFR + 3.00%, 0.50% Floor
6.92
%
03/01/29
$655,838
2,138,520
Qlik Technologies (Project Alpha Intermediate Holding, Inc.),
Second Lien Term Loan, 3 Mo. CME Term SOFR + 5.00%,
0.50% Floor
9.00
%
05/08/33
2,079,710
2,946,291
Solera Holdings, Inc. (Polaris Newco LLC), Term Loan B, 3 Mo.
CME Term SOFR + CSA + 4.00%, 0.50% Floor
8.10
%
06/04/28
2,787,752
1,562,113
Starlight Parent LLC, Term Loan B, 3 Mo. CME Term SOFR +
4.00%, 0.00% Floor
8.03
%
04/16/32
1,552,021
2,751,169
X.AI LLC, Fixed Rate Term Loan, Fixed at 12.50%
12.50
%
06/30/30
2,839,207
 
23,474,821
Asset Management & Custody Banks – 0.2%
1,304,395
Jump Financial LLC, Refi Term Loan B, 3 Mo. CME Term SOFR
+ 3.50%, 0.00% Floor
7.50
%
02/26/32
1,317,439
Automotive Retail – 0.5%
2,629,572
Mavis Tire Express Services Topco Corp., Refi Term Loan B, 1
Mo. CME Term SOFR + 3.00%, 0.75% Floor
6.92
%
05/04/28
2,639,604
Building Products – 0.3%
682,904
LBM Acquisition LLC, Term Loan B, 1 Mo. CME Term SOFR +
3.75%, 0.75% Floor
7.81
%
06/06/31
645,699
971,549
LBM Acquisition LLC, Term Loan, 1 Mo. CME Term SOFR +
5.00%, 0.75% Floor
8.96
%
06/06/31
963,961
 
1,609,660
Construction Materials – 0.1%
626,805
Smyrna Ready Mix Concrete LLC, Term Loan B, 3 Mo. CME
Term SOFR + 0%, 0.00% Floor
6.95
%
04/02/29
628,503
Data Processing & Outsourced Services – 0.6%
280,334
Paysafe Holdings US Corp., Facility B1 Loan, 1 Mo. CME Term
SOFR + CSA + 2.75%, 0.50% Floor
6.78
%
06/28/28
269,005
3,093,642
Skopima Consilio Parent LLC, Refi Term Loan B, 1 Mo. CME
Term SOFR + 3.75%, 0.50% Floor
7.71
%
05/17/28
2,834,951
 
3,103,956
Diversified Support Services – 0.3%
1,852,726
Vestis Corp., Term Loan B-1, 3 Mo. CME Term SOFR + 2.25%,
0.00% Floor
6.07
%
02/22/31
1,685,981
Electronic Equipment & Instruments – 0.6%
1,276,175
DG Investment Intermediate Holdings 2, Inc., Second Lien, 1 Mo.
CME Term SOFR + 5.50%, 0.00% Floor
9.42
%
07/31/33
1,279,366
780,224
DG Investment Intermediate Holdings 2, Inc., Term Loan B, 1 Mo.
CME Term SOFR + 3.75%, 0.00% Floor
6.67
%
07/10/32
784,289
1,133,705
VeriFone Systems, Inc., Extended Term Loan, 3 Mo. CME Term
SOFR + CSA + 5.25%, 0.00% Floor
9.35
%
08/21/28
1,077,422
 
3,141,077
Food Distributors – 0.1%
761,346
C&S Wholesale Grocers, Inc., Term Loan B, 3 Mo. CME Term
SOFR + 5.00%, 0.00% Floor
9.00
%
09/23/30
752,780
See Notes to Financial Statements
Page 12
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
November 30, 2025 (Unaudited)
Principal
Value
Description
Rate (d)
Stated
Maturity (e)
Value
SENIOR FLOATING-RATE LOAN INTERESTS (a) (Continued)
Health Care Facilities – 0.9%
$4,749,234
IVC Evidensia (VetStrategy Canada / IVC Acquisition Midco Ltd.),
Term Loan B-12, 3 Mo. CME Term SOFR + 3.75%, 0.50% Floor
7.75
%
12/06/28
$4,778,323
Health Care Services – 0.4%
2,220,479
Opal US LLC, Refi Term Loan B4 (USD), 3 Mo. CME Term
SOFR + 3.00%, 0.00% Floor
6.90
%
04/23/32
2,237,832
Health Care Technology – 1.1%
6,131,415
Cotiviti, Inc. (Verscend Technologies, Inc.), Fixed Rate Term Loan,
Fixed at 7.63%
7.63
%
05/01/31
6,006,886
Home Furnishings – 0.1%
551,970
Restoration Hardware (RH), Term Loan B-2, 1 Mo. CME Term
SOFR + CSA + 3.25%, 0.50% Floor
7.27
%
10/20/28
541,068
Industrial Machinery & Supplies & Components – 0.8%
4,257,900
Filtration Group Corp., Term Loan B, 1 Mo. CME Term SOFR +
2.75%, 0.50% Floor
6.67
%
10/23/28
4,288,238
Insurance Brokers – 4.8%
5,772,320
CRC Insurance Group (f/k/a Truist Insurance), Second Lien Term
Loan, 3 Mo. CME Term SOFR + 4.75%, 0.00% Floor
8.75
%
05/06/32
5,860,723
4,702,000
Alera Group Intermediate Holdings, Inc., Second Lien Term Loan,
1 Mo. CME Term SOFR + 5.50%, 0.50% Floor
9.42
%
05/30/33
4,839,134
4,391,866
Howden Group Holdings, Term Loan B, 1 Mo. CME Term SOFR
+ 3.50%, 0.50% Floor
7.42
%
04/18/30
4,412,025
1,921,182
Hub International Limited, 2025 Refi Term Loan B, 3 Mo. CME
Term SOFR + 2.25%, 0.75% Floor
6.12
%
06/20/30
1,930,586
8,290,004
OneDigital Borrower LLC, Second Lien Term Loan, 1 Mo. CME
Term SOFR + 5.25%, 0.50% Floor
9.17
%
07/02/32
8,372,904
1,120,385
Trucordia Insurance Holdings LLC, Term Loan B, 1 Mo. CME
Term SOFR + 3.25%, 0.00% Floor
7.17
%
06/17/32
1,124,116
 
26,539,488
Integrated Telecommunication Services – 0.2%
1,038,931
Numericable US LLC, Term Loan B-14, 1 Mo. CME Term SOFR
+ 6.875%, 0.00% Floor
10.75
%
05/31/31
1,043,367
Interactive Media & Services – 1.1%
3,310,572
Twitter, Inc. (X Corp.), Fixed Rate Term Loan B-3, Fixed at
9.50%
9.50
%
10/29/29
3,286,091
2,694,215
Twitter, Inc. (X Corp.), Term Loan B-1, 6 Mo. CME Term SOFR +
CSA + 6.50%, 0.50% Floor
10.45
%
10/26/29
2,627,870
 
5,913,961
IT Consulting & Other Services – 1.1%
6,244,046
Gainwell Acquisition Corp. (f/k/a Milano), Term Loan B, 3 Mo.
CME Term SOFR + CSA + 4.00%, 0.75% Floor
8.10
%
10/01/27
6,192,658
Life Sciences Tools & Services – 0.4%
2,430,949
Syneos Health, Inc. (Star Parent, Inc.), Term Loan B, 3 Mo. CME
Term SOFR + 4.00%, 0.00% Floor
8.00
%
09/30/30
2,436,917
Metal, Glass & Plastic Containers – 0.3%
1,789,401
ProAmpac PG Borrower LLC, 2024 Refi Term Loan B, 3 Mo.
CME Term SOFR + 4.00%, 0.75% Floor
7.88-7.90%
09/15/28
1,794,546
See Notes to Financial Statements
Page 13
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
November 30, 2025 (Unaudited)
Principal
Value
Description
Rate (d)
Stated
Maturity (e)
Value
SENIOR FLOATING-RATE LOAN INTERESTS (a) (Continued)
Other Specialty Retail – 0.3%
$489,361
Petco Health and Wellness Company, Inc., Initial Term Loan B, 3
Mo. CME Term SOFR + CSA + 3.25%, 0.75% Floor
7.51
%
03/04/28
$482,701
1,042,725
PetSmart LLC, Term Loan B, 1 Mo. CME Term SOFR + 4.00%,
0.00% Floor
7.96
%
08/18/32
1,035,770
 
1,518,471
Research & Consulting Services – 0.5%
998,484
Amspec Parent LLC, Refi Term Loan B, 3 Mo. CME Term SOFR
+ 3.50%, 0.00% Floor
7.50
%
12/22/31
1,004,305
1,575,540
Camelot US Acquisition LLC, 2025 Incremental Term Loan, 1 Mo.
CME Term SOFR + 3.25%, 0.00% Floor
7.17
%
01/31/31
1,573,570
 
2,577,875
Security & Alarm Services – 1.0%
5,431,806
Garda World Security Corp., Refi Term Loan B, 1 Mo. CME Term
SOFR + 3.00%, 0.00% Floor
6.95
%
02/01/29
5,435,880
Systems Software – 0.9%
1,821,938
Idera, Inc. (Flash Charm), Second Lien Term Loan, 3 Mo. CME
Term SOFR + 6.75%, 0.75% Floor
10.75
%
03/02/29
1,474,066
131,425
Kaseya, Inc., Second Lien Term Loan , 1 Mo. CME Term SOFR +
5.00%, 0.00% Floor
8.92
%
03/20/33
129,454
1,009,800
KnowBe4, Inc., Term Loan B, 3 Mo. CME Term SOFR + 3.75%,
0.00% Floor
7.59
%
07/26/32
1,012,961
1,820,810
Proofpoint, Inc., 2024 Refi Term Loan, 1 Mo. CME Term SOFR +
3.00%, 0.50% Floor
6.92
%
08/31/28
1,832,190
700,757
Proofpoint, Inc., Incr Term Loan, 1 Mo. CME Term SOFR +
3.00%, 0.50% Floor
6.92
%
08/31/28
705,136
 
5,153,807
Trading Companies & Distributors – 0.1%
414,674
Veritiv Corp. (Verde Purchaser LLC), Term Loan B, 3 Mo. CME
Term SOFR + 4%, 0.00% Floor
8.00
%
11/29/30
411,927
Total Senior Floating-Rate Loan Interests
124,221,117
(Cost $126,194,879)
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
FOREIGN CORPORATE BONDS AND NOTES (a) – 14.1%
Aerospace & Defense – 0.3%
1,695,000
Bombardier, Inc. (b)
6.75
%
06/15/33
1,789,653
Air Freight & Logistics – 0.3%
1,418,000
Phoenix Aviation Capital Ltd. (b)
9.25
%
07/15/30
1,509,615
Automotive Parts & Equipment – 0.6%
1,514,000
Clarios Global, L.P. / Clarios US Finance Co. (b)
6.75
%
02/15/30
1,574,939
1,414,000
Clarios Global, L.P. / Clarios US Finance Co. (b)
6.75
%
09/15/32
1,455,529
 
3,030,468
Casinos & Gaming – 0.0%
140,000
Flutter Treasury DAC (b)
6.38
%
04/29/29
144,483
Data Processing & Outsourced Services – 0.4%
2,498,000
Paysafe Finance PLC / Paysafe Holdings US Corp. (b)
4.00
%
06/15/29
2,277,540
See Notes to Financial Statements
Page 14
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
November 30, 2025 (Unaudited)
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
FOREIGN CORPORATE BONDS AND NOTES (a) (Continued)
Diversified Support Services – 0.6%
$3,421,000
Albion Financing 1 SARL / Aggreko Holdings, Inc. (b)
7.00
%
05/21/30
$3,564,525
Environmental & Facilities Services – 0.5%
2,750,000
GFL Environmental, Inc. (b)
6.75
%
01/15/31
2,890,451
Health Care Services – 0.8%
4,426,000
Opal Bidco SAS (b)
6.50
%
03/31/32
4,566,220
Hotels, Resorts & Cruise Lines – 1.2%
2,355,000
Carnival Corp. (b)
5.88
%
06/15/31
2,426,665
2,950,000
Carnival Corp. (b)
5.75
%
08/01/32
3,027,771
573,000
NCL Corp Ltd. (b)
6.75
%
02/01/32
581,924
285,000
Viking Cruises Ltd. (b)
5.88
%
10/15/33
289,799
 
6,326,159
Insurance Brokers – 2.1%
7,500,000
Ardonagh Finco Ltd. (b)
7.75
%
02/15/31
7,847,872
556,000
Ardonagh Group Finance Ltd. (b)
8.88
%
02/15/32
573,727
1,042,000
Howden UK Refinance PLC / Howden UK Refinance 2 PLC /
Howden US Refinance LLC (b)
7.25
%
02/15/31
1,069,307
211,000
Howden UK Refinance PLC / Howden UK Refinance 2 PLC /
Howden US Refinance LLC (b)
8.13
%
02/15/32
214,170
1,661,000
Jones Deslauriers Insurance Management, Inc. (b)
8.50
%
03/15/30
1,739,921
 
11,444,997
IT Consulting & Other Services – 1.3%
7,599,000
Elastic NV (b)
4.13
%
07/15/29
7,336,365
Metal, Glass & Plastic Containers – 1.7%
2,970,000
Ardagh Metal Packaging Finance USA LLC / Ardagh Metal
Packaging Finance PLC (b)
6.00
%
06/15/27
2,970,000
3,304,000
Ardagh Metal Packaging Finance USA LLC / Ardagh Metal
Packaging Finance PLC (b) (f)
6.25
%
01/30/31
3,363,514
1,399,000
Canpack SA / Canpack US LLC (b)
3.88
%
11/15/29
1,334,109
873,000
Trivium Packaging Finance B.V. (b)
8.25
%
07/15/30
919,894
581,000
Trivium Packaging Finance B.V. (b)
12.25
%
01/15/31
619,880
 
9,207,397
Packaged Foods & Meats – 0.7%
3,745,000
Froneri Lux FinCo SARL (b)
6.00
%
08/01/32
3,784,124
Restaurants – 2.5%
14,344,000
1011778 BC ULC / New Red Finance, Inc. (b)
4.00
%
10/15/30
13,681,763
Security & Alarm Services – 0.4%
158,000
Garda World Security Corp. (b)
8.25
%
08/01/32
162,156
1,992,000
Garda World Security Corp. (b)
8.38
%
11/15/32
2,044,128
 
2,206,284
Specialized Consumer Services – 0.6%
3,073,000
Belron UK Finance PLC (b)
5.75
%
10/15/29
3,127,211
Wireless Telecommunication Services – 0.1%
572,000
Ziggo BV (b)
4.88
%
01/15/30
542,479
Total Foreign Corporate Bonds and Notes
77,429,734
(Cost $75,256,721)
 
See Notes to Financial Statements
Page 15
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
November 30, 2025 (Unaudited)
Shares
Description
Value
COMMON STOCKS – 0.0%
Pharmaceuticals – 0.0%
220,989
Akorn, Inc. (g) (h) (i)
$8,840
(Cost $2,534,056)
MONEY MARKET FUNDS (a) – 0.4%
2,344,616
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 3.84% (j)
2,344,616
(Cost $2,344,616)
Total Investments – 132.2%
726,835,562
(Cost $721,808,655)
Outstanding Loan – (33.3)%
(183,000,000
)
Net Other Assets and Liabilities – 1.1%
5,757,766
Net Assets – 100.0%
$549,593,328
 
(a)
All or a portion of these securities serve as collateral for the outstanding loan unless otherwise indicated. At November 30, 2025,
the segregated value of these securities amounts to $724,978,113.
(b)
This security, sold within the terms of a private placement memorandum, is exempt from registration upon resale under
Rule 144A of the Securities Act of 1933, as amended (the “1933 Act”), and may be resold in transactions exempt from
registration, normally to qualified institutional buyers. Pursuant to procedures adopted by the Fund’s Board of Trustees, this
security has been determined to be liquid by First Trust Advisors L.P., (the “Advisor”). Although market instability can result in
periods of increased overall market illiquidity, liquidity for each security is determined based on security specific factors and
assumptions, which require subjective judgment. At November 30, 2025, securities noted as such amounted to $575,128,795 or
104.6% of net assets.
(c)
This security does not serve as collateral for the outstanding loan.
(d)
Senior Floating-Rate Loan Interests (“Senior Loans”) in which the Fund invests pay interest at rates which are periodically
predetermined by reference to a base lending rate plus a premium. These base lending rates are generally (i) the SOFR obtained
from the U.S. Department of the Treasury’s Office of Financial Research or another major financial institution, (ii) the lending
rate offered by one or more major European banks, (iii) the prime rate offered by one or more United States banks or (iv) the
certificate of deposit rate. Certain Senior Loans are subject to a SOFR floor that establishes a minimum SOFR rate. When a range
of rates is disclosed, the Fund holds more than one contract within the same tranche with identical SOFR period, spread and floor,
but different SOFR reset dates.
(e)
Senior Loans generally are subject to mandatory and/or optional prepayment. As a result, the actual remaining maturity of Senior
Loans may be substantially less than the stated maturities shown.
(f)
When-issued security. The interest rate shown reflects the rate in effect at November 30, 2025. Interest will begin accruing on the
security’s first settlement date.
(g)
This issuer has filed for protection in bankruptcy court.
(h)
Security received in a transaction exempt from registration under the 1933 Act. The security may be resold pursuant to an
exemption from registration under the 1933 Act, typically to qualified institutional buyers (see Note 2D - Restricted Securities in
the Notes to Financial Statements).
(i)
Non-income producing security.
(j)
Rate shown reflects yield as of November 30, 2025.
 
Abbreviations throughout the Portfolio of Investments:
CME
– Chicago Mercantile Exchange
CSA
– Credit Spread Adjustment
SOFR
– Secured Overnight Financing Rate
USD
– United States Dollar
See Notes to Financial Statements
Page 16
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
November 30, 2025 (Unaudited)
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of November 30, 2025 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): 
 
Total
Value at
11/30/2025
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Corporate Bonds and Notes*
$522,831,255
$—
$522,831,255
$—
Senior Floating-Rate Loan Interests*
124,221,117
—
124,221,117
—
Foreign Corporate Bonds and Notes*
77,429,734
—
77,429,734
—
Common Stocks*
8,840
—
8,840
—
Money Market Funds
2,344,616
2,344,616
—
—
Total Investments
$726,835,562
$2,344,616
$724,490,946
$—
 
*
See Portfolio of Investments for industry breakout.
See Notes to Financial Statements
Page 17
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Statement of Assets and Liabilities
November 30, 2025 (Unaudited)
 
ASSETS:
Investments, at value
$ 726,835,562
Cash
10,204
Receivables:
Interest
11,146,162
Investment securities sold
3,661,186
Reclaims
11,440
Prepaid expenses
13,837
Unrealized appreciation on unfunded loan commitments
897
Total Assets
741,679,288
LIABILITIES:
Outstanding loan
183,000,000
Payables:
Investment securities purchased
7,388,568
Investment advisory fees
803,135
Interest and fees on loan
775,130
Administrative fees
45,286
Audit and tax fees
42,563
Trustees’ fees and expenses
9,408
Custodian fees
9,374
Legal fees
5,849
Shareholder reporting fees
4,580
Transfer agent fees
1,067
Financial reporting fees
847
Other liabilities
153
Total Liabilities
192,085,960
NET ASSETS
$549,593,328
NET ASSETS consist of:
Paid-in capital
$ 666,827,399
Par value
367,730
Accumulated distributable earnings (loss)
(117,601,801
)
NET ASSETS
$549,593,328
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share)
$14.95
Number of Common Shares outstanding (unlimited number of Common Shares has been authorized)
36,772,989
Investments, at cost
$721,808,655
See Notes to Financial Statements
Page 18
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Statement of Operations
For the Six Months Ended November 30, 2025 (Unaudited)
 
INVESTMENT INCOME:
Interest
$ 25,925,061
Other
 122,505
Total investment income
26,047,566
EXPENSES:
Investment advisory fees
 4,874,789
Interest and fees on loan
 4,670,214
Administrative fees
 186,334
Shareholder reporting fees
 61,098
Audit and tax fees
 32,821
Trustees’ fees and expenses
 25,959
Legal fees
 19,368
Listing expense
 18,495
Transfer agent fees
 11,532
Custodian fees
 8,493
Financial reporting fees
 4,952
Other
 15,347
Total expenses
9,929,402
NET INVESTMENT INCOME (LOSS)
16,118,164
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments
1,832,887
Net change in unrealized appreciation (depreciation) on:
Investments
6,729,465
Unfunded loan commitments
210
Net change in unrealized appreciation (depreciation)
 6,729,675
NET REALIZED AND UNREALIZED GAIN (LOSS)
8,562,562
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
$ 24,680,726
See Notes to Financial Statements
Page 19
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Statements of Changes in Net Assets
 
 
Six Months
Ended
11/30/2025
(Unaudited)
Year
Ended
5/31/2025
OPERATIONS:
Net investment income (loss)
$ 16,118,164
$ 32,013,740
Net realized gain (loss)
 1,832,887
 (10,526,510
)
Net change in unrealized appreciation (depreciation)
 6,729,675
 23,990,789
Net increase (decrease) in net assets resulting from operations
24,680,726
45,478,019
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations
 (27,579,742
)
 (32,764,110
)
Return of capital
 —
 (23,314,698
)
Total distributions to shareholders
(27,579,742
)
(56,078,808
)
Total increase (decrease) in net assets
 (2,899,016
)
 (10,600,789
)
NET ASSETS:
Beginning of period
 552,492,344
 563,093,133
End of period
$ 549,593,328
$ 552,492,344
COMMON SHARES:
Common Shares at end of period
36,772,989
36,772,989
See Notes to Financial Statements
Page 20
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Statement of Cash Flows
For the Six Months Ended November 30, 2025 (Unaudited)
 
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations
$24,680,726
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash
provided by operating activities:
Purchases of investments
(340,631,386
)
Sales, maturities and paydown of investments
328,445,401
Net amortization/accretion of premiums/discounts on investments
(1,244,516
)
Net realized gain/loss on investments
(1,832,887
)
Net change in unrealized appreciation/depreciation on investments and unfunded loan
commitments
(6,729,675
)
Changes in assets and liabilities:
Increase in interest receivable
(1,331,866
)
Increase in reclaims receivable
(11,440
)
Decrease in prepaid expenses
17,053
Increase in interest and fees payable on loan
48,885
Increase in investment advisory fees payable
3,345
Decrease in audit and tax fees payable
(23,180
)
Increase in legal fees payable
1,308
Decrease in shareholder reporting fees payable
(25,404
)
Increase in administrative fees payable
5,690
Increase in custodian fees payable
5,802
Decrease in transfer agent fees payable
(700
)
Increase in trustees’ fees and expenses payable
811
Increase in financial reporting fees payable
76
Increase in other liabilities payable
4
Cash provided by operating activities
$1,378,047
Cash flows from financing activities:
Distributions to Common Shareholders from investment operations
(27,579,742
)
Repayment of borrowing
(111,000,000
)
Proceeds from borrowing
137,000,000
Cash used in financing activities
(1,579,742
)
Decrease in cash
(201,695
)
Cash at beginning of period
211,899
Cash at end of period
$10,204
Supplemental disclosure of cash flow information:
Cash paid during the period for interest and fees
$4,621,329
See Notes to Financial Statements
Page 21
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Financial Highlights
For a Common Share outstanding throughout each period
 
 
Six Months
Ended
11/30/2025
(Unaudited)
Year Ended
Period
Ended
5/31/2021 (a)
 
5/31/2025
5/31/2024
5/31/2023
5/31/2022
Net asset value, beginning of period
$ 15.02
$ 15.31
$ 15.40
$ 17.48
$ 21.13
$ 20.00
Income from investment operations:
Net investment income (loss)
0.44
 (b)
0.87
 (b)
0.88
 (b)
0.92
1.16
1.08
Net realized and unrealized gain (loss)
0.24
0.37
0.59
(1.46
)
(3.14
)
1.12
Total from investment operations
0.68
1.24
1.47
(0.54
)
(1.98
)
2.20
Distributions paid to shareholders from:
Net investment income
(0.75
)
(0.89
)
(0.91
)
(0.97
)
(1.29
)
(1.07
)
Net realized gain
—
—
—
—
(0.38
)
—
Return of capital
—
(0.64
)
(0.65
)
(0.57
)
—
—
Total distributions paid to Common
Shareholders
(0.75
)
(1.53
)
(1.56
)
(1.54
)
(1.67
)
(1.07
)
Net asset value, end of period
$14.95
$15.02
$15.31
$15.40
$17.48
$21.13
Market value, end of period
$14.22
$14.39
$14.10
$13.52
$16.07
$19.86
Total return based on net asset value (c)
4.78
%
8.84
%
11.27
%
(1.86
)%
(9.73
)%
11.49
%
Total return based on market value (c)
4.02
%
13.22
%
16.72
%
(6.27
)%
(11.70
)%
4.79
%
Ratios to average net
assets/supplemental data:
Net assets, end of period (in 000’s)
$ 549,593
$ 552,492
$ 563,093
$ 566,399
$ 642,783
$ 776,142
Ratio of total expenses to average net
assets
3.59
% (d)
3.26
%
3.34
%
3.05
%
2.41
%
2.28
% (d)
Ratio of total expenses to average net
assets excluding interest expense
1.90
% (d)
1.80
%
1.82
%
1.86
%
2.02
%
1.93
% (d)
Ratio of net investment income (loss) to
average net assets
5.83
% (d)
5.72
%
5.69
%
5.75
%
5.81
%
5.62
% (d)
Portfolio turnover rate
33
%
63
%
52
%
35
%
39
%
54
%
Indebtedness:
Total loan outstanding (in 000’s)
$ 183,000
$ 157,000
$ 131,000
$ 123,000
$ 278,000
$ 309,000
Asset coverage per $1,000 of
indebtedness (e)
$ 4,003
$ 4,519
$ 5,298
$ 5,605
$ 3,312
$ 3,512
 
(a)
The Fund was seeded on May 21, 2020 and commenced operations on June 25, 2020.
(b)
Based on average shares outstanding.
(c)
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.
(d)
Annualized.
(e)
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.
See Notes to Financial Statements
Page 22
Notes to Financial Statements
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
November 30, 2025 (Unaudited)
1. Organization
First Trust High Yield Opportunities 2027 Term Fund (the “Fund”) is a diversified, closed-end management investment company organized as a Massachusetts business trust on June 25, 2020, and is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund trades under the ticker symbol “FTHY” on the New York Stock Exchange (“NYSE”).
The investment objective of the Fund is to provide current income. Under normal market conditions, the Fund will seek to achieve its investment objective by investing at least 80% of its Managed Assets in high yield debt securities of any maturity that are rated below investment grade at the time of purchase or unrated securities determined by the Advisor (as defined below) to be of comparable quality. “Managed Assets” means the total asset value of the Fund minus the sum of its liabilities, other than the principal amount of borrowings. High yield debt securities include U.S. and non-U.S. corporate debt obligations and senior secured floating rate loans (“Senior Loans”)(1). Securities rated below investment grade are commonly referred to as “junk” or “high yield” securities and are considered speculative with respect to the issuer’s capacity to pay interest and repay principal. There can be no assurance that the Fund will achieve its investment objective or that the Fund’s investment strategies will be successful.
2. Significant Accounting Policies
The Fund is considered an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.” The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements. The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
A. Portfolio Valuation
The net asset value (“NAV”) of the Common Shares of the Fund is determined daily as of the close of regular trading on the NYSE, normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If the NYSE closes early on a valuation day, the NAV is determined as of that time. Domestic debt securities and foreign securities are priced using data reflecting the earlier closing of the principal markets for those securities. The Fund’s NAV per Common Share is calculated by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses, dividends declared but unpaid and any borrowings of the Fund), by the total number of Common Shares outstanding.
The Fund’s investments are valued daily at market value or, in the absence of market value with respect to any portfolio securities, at fair value. Market value prices represent readily available market quotations such as last sale or official closing prices from a national or foreign exchange (i.e., a regulated market) and are primarily obtained from third-party pricing services. Fair value prices represent any prices not considered market value prices and are either obtained from a third-party pricing service or are determined by the Pricing Committee of the Fund’s investment advisor, First Trust Advisors L.P. (“First Trust” or the “Advisor”), in accordance with valuation procedures approved by the Fund’s Board of Trustees, and in accordance with provisions of the 1940 Act and rules thereunder. Investments valued by the Advisor’s Pricing Committee, if any, are footnoted as such in the footnotes to the Portfolio of Investments. The Fund’s investments are valued as follows:
Senior Loans are not listed on any securities exchange or board of trade. Senior Loans are typically bought and sold by institutional investors in individually negotiated private transactions that function in many respects like an over-the-counter secondary market, although typically no formal market-makers exist. This market, while having grown substantially since its inception, generally has fewer trades and less liquidity than the secondary market for other types of securities. Some Senior Loans have few or no trades, or trade infrequently, and information regarding a specific Senior Loan may not be widely available or may be incomplete. Accordingly, determinations of the market value of Senior Loans may be based on infrequent and dated information. Because there is less reliable, objective data available, elements of judgment may play a greater role in valuation of Senior Loans than for other types of securities. Typically, Senior Loans are fair valued using information provided by a third-party pricing service. The third-party pricing service primarily uses over-the-counter pricing from dealer runs and broker quotes from indicative sheets to value the Senior Loans. If the third-party pricing service cannot or does not provide a valuation for a particular Senior Loan or such valuation is deemed unreliable, the Advisor’s Pricing Committee may value such Senior Loan at a fair value according to procedures approved by the Fund’s Board of Trustees, and in accordance with the provisions of the 1940 Act and rules thereunder. Fair valuation of a Senior Loan is based on the consideration of all available information, including, but not limited to the following:
 1)
the most recent price provided by a pricing service;
 
(1)
The terms “security” and “securities” used throughout the Notes to Financial Statements include Senior Loans.
Page 23
Notes to Financial Statements (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
November 30, 2025 (Unaudited)
 2)
available market prices for the fixed-income security;
 3)
the fundamental business data relating to the borrower/issuer;
 4)
an evaluation of the forces which influence the market in which these securities are purchased and sold;
 5)
the type, size and cost of the security;
 6)
the financial statements of the borrower/issuer, or the financial condition of the country of issue;
 7)
the credit quality and cash flow of the borrower/issuer, or country of issue, based on the Pricing Committee’s, sub-advisor’s or portfolio manager’s analysis, as applicable, or external analysis;
 8)
the information as to any transactions in or offers for the security;
 9)
the price and extent of public trading in similar securities (or equity securities) of the borrower/issuer, or comparable companies;
10)
the coupon payments;
11)
the quality, value and salability of collateral, if any, securing the security;
12)
the business prospects of the borrower/issuer, including any ability to obtain money or resources from a parent or affiliate and an assessment of the borrower’s/issuer’s management;
13)
the prospects for the borrower’s/issuer’s industry, and multiples (of earnings and/or cash flows) being paid for similar businesses in that industry;
14)
the borrower’s competitive position within the industry;
15)
the borrower’s ability to access additional liquidity through public and/or private markets; and
16)
other relevant factors.
Corporate bonds, corporate notes, and other debt securities are fair valued on the basis of valuations provided by a third-party pricing service approved by the Advisor’s Pricing Committee, which may use the following valuation inputs when available:
 1)
benchmark yields;
 2)
reported trades;
 3)
broker/dealer quotes;
 4)
issuer spreads;
 5)
benchmark securities;
 6)
bids and offers; and
 7)
reference data including market research publications.
Common stocks and other equity securities listed on any national or foreign exchange (excluding Nasdaq, Inc. (“Nasdaq”) and the London Stock Exchange Alternative Investment Market (“AIM”)) are valued at the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price. Securities traded on more than one securities exchange are valued at the last sale price or official closing price, as applicable, at the close of the securities exchange representing the primary exchange for such securities.
Shares of open-end funds are valued based on NAV per share.
Equity securities traded in an over-the-counter market are valued at the close price or the last trade price.
Certain securities may not be able to be priced by pre-established pricing methods. Such securities may be valued by the Advisor’s Pricing Committee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended (the “1933 Act”)) for which a third-party pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market or fair value price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of the Fund’s NAV or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the third-party pricing service, does not reflect the security’s fair value. As a general principle, the current fair value of a security would appear to be the amount which the owner might reasonably expect to receive for the security upon its current sale. When fair value prices are used, generally they will differ from market quotations or official closing prices on the applicable exchanges. A variety of factors may be considered in determining the fair value of such securities, including, but not limited to, the following:
 1)
the last sale price on the exchange on which they are principally traded or, for Nasdaq and AIM securities, the official closing price;
 2)
the type of security;
 3)
the size of the holding;
Page 24
Notes to Financial Statements (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
November 30, 2025 (Unaudited)
 4)
the initial cost of the security;
 5)
transactions in comparable securities;
 6)
price quotes from dealers and/or third-party pricing services;
 7)
relationships among various securities;
 8)
information obtained by contacting the issuer, analysts, or the appropriate stock exchange;
 9)
an analysis of the issuer’s financial statements;
10)
the existence of merger proposals or tender offers that might affect the value of the security; and
11)
other relevant factors.
The Fund is subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-level hierarchy for fair valuation based upon the inputs to the valuation as of the measurement date. The three levels of the fair value hierarchy are as follows:
•
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.
•
Level 3 – Level 3 inputs are unobservable inputs. Unobservable inputs may reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the investment.
The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. A summary of the inputs used to value the Fund’s investments as of November 30, 2025, is included with the Fund’s Portfolio of Investments.
B. Security Transactions and Investment Income
Security transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the identified cost basis. Interest income is recorded on the accrual basis. Market premiums and discounts are amortized to the earliest call date of each respective borrowing.
Securities purchased or sold on a when-issued, delayed-delivery or forward purchase commitment basis may have extended settlement periods. The value of the security so purchased is subject to market fluctuations during this period. Due to the nature of the Senior Loan market, the actual settlement date may not be certain at the time of the purchase or sale for some of the Senior Loans. Interest income on such Senior Loans is not accrued until settlement date. The Fund maintains liquid assets with a current value at least equal to the amount of its when-issued, delayed-delivery or forward purchase commitments until payment is made. At November 30, 2025, the Fund held $3,363,512 of when-issued or delayed-delivery securities. At November 30, 2025, the Fund had no forward purchase commitments (other than the unfunded commitments discussed below).
C. Unfunded Loan Commitments
The Fund may enter into certain credit agreements, all or a portion of which may be unfunded. The Fund is obligated to fund these loan commitments at the borrower’s discretion. Unfunded loan commitments are marked-to-market daily, and any unrealized appreciation (depreciation) is included in the Statement of Assets and Liabilities and Statement of Operations. In connection with these commitments, the Fund earns a commitment fee typically set as a percentage of the commitment amount. The commitment fees, if any, are included in “Other” under Investment Income on the Statement of Operations.
As of November 30, 2025, the Fund had the following unfunded loan commitment, which is categorized as Level 2 within the fair value hierarchy:  
Page 25
Notes to Financial Statements (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
November 30, 2025 (Unaudited)
Borrower
Principal
Value
Commitment
Amount
Value
Unrealized
Appreciation
(Depreciation)
AmSpec Parent LLC, Term Loan B
$ 153,844
153,844
$ 154,741
$ 897
D. Restricted Securities
The Fund holds restricted securities, which are securities that may not be offered for public sale without first being registered under the 1933 Act. Prior to registration, restricted securities may only be resold in transactions exempt from registration under Rule 144A under the 1933 Act, normally to qualified institutional buyers. As of November 30, 2025, the Fund held restricted securities as shown in the following table that the Advisor has deemed illiquid pursuant to procedures adopted by the Fund’s Board of Trustees. Although market instability can result in periods of increased overall market illiquidity, liquidity for each security is determined based on security-specific factors and assumptions, which require subjective judgment. The Fund does not have the right to demand that such securities be registered. These securities are valued according to the valuation procedures as stated in the Portfolio Valuation note (Note 2A) and are not expressed as a discount to the carrying value of a comparable unrestricted security.  
Security
Acquisition
Date
Shares
Current Price
Carrying
Cost
Value
% of
Net
Assets
Akorn, Inc.
10/15/2020
220,989
$0.04
$2,534,056
$8,840
0.00
%† 
† Amount is less than 0.01%.
E. Dividends and Distributions to Shareholders
The Fund will distribute to holders of its Common Shares monthly dividends of all or a portion of its net income after the payment of interest and dividends in connection with leverage, if any. Distributions of any net long-term capital gains earned by the Fund are distributed at least annually. Distributions will automatically be reinvested into additional Common Shares pursuant to the Fund’s Dividend Reinvestment Plan unless cash distributions are elected by the shareholder.
Distributions from net investment income and realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These permanent differences are primarily due to the varying treatment of income and gain/loss on portfolio securities held by the Fund and have no impact on net assets or NAV per share. Temporary differences, which arise from recognizing certain items of income, expense and gain/loss in different periods for financial statement and tax purposes, will reverse at some point in the future.
The tax character of distributions paid by the Fund during the fiscal year ended May 31, 2025, was as follows:  
Distributions paid from:
 
Ordinary income
$32,764,110
Capital gains
—
Return of capital
23,314,698
As of May 31, 2025, the components of distributable earnings and net assets on a tax basis were as follows: 
Undistributed ordinary income
$—
Undistributed capital gains
—
Total undistributed earnings
—
Accumulated capital and other losses
(111,653,746
)
Net unrealized appreciation (depreciation)
(3,049,039
)
Total accumulated earnings (losses)
(114,702,785
)
Other
—
Paid-in capital
667,195,129
Total net assets
$552,492,344
Page 26
Notes to Financial Statements (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
November 30, 2025 (Unaudited)
F. Income Taxes
The Fund intends to continue to qualify as a regulated investment company by complying with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended, which includes distributing substantially all of its net investment income and net realized gains to shareholders. Accordingly, no provision has been made for federal and state income taxes. However, due to the timing and amount of distributions, the Fund may be subject to an excise tax of 4% of the amount by which approximately 98% of the Fund’s taxable income exceeds the distributions from such taxable income for the calendar year.
The Fund is subject to accounting standards that establish a minimum threshold for recognizing, and a system for measuring, the benefits of a tax position taken or expected to be taken in a tax return. The taxable years ended 2022, 2023, 2024, and 2025 remain open to federal and state audit. As of November 30, 2025, management has evaluated the application of these standards to the Fund and has determined that no provision for income tax is required in the Fund’s financial statements for uncertain tax positions.
The Fund intends to utilize provisions of the federal income tax laws, which allow it to carry a realized capital loss forward indefinitely following the year of the loss and offset such loss against any future realized capital gains. The Fund is subject to certain limitations under U.S. tax rules on the use of capital loss carryforwards and net unrealized built-in losses. These limitations apply when there has been a 50% change in ownership. At May 31, 2025, for federal income tax purposes, the Fund had $111,653,746 of non-expiring capital loss carryforwards available, to the extent provided by regulations, to offset future capital gains. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to the Fund’s shareholders.
Certain losses realized during the current fiscal year may be deferred and treated as occurring on the first day of the following fiscal year for federal income tax purposes. For the fiscal year ended May 31, 2025, the Fund had no net late year ordinary or capital losses.
As of November 30, 2025, the aggregate cost, gross unrealized appreciation, gross unrealized depreciation, and net unrealized appreciation/(depreciation) on investments (including short positions and derivatives, if any) for federal income tax purposes were as follows: 
Tax Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
(Depreciation)
Net Unrealized
Appreciation
(Depreciation)
$721,808,655
$15,333,694
$(10,306,787)
$5,026,907
G. Expenses
The Fund will pay all expenses directly related to its operations.
H. Segment Reporting
The Fund has adopted FASB Accounting Standards Update 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. Adoption of the standard impacted financial statement disclosures only and did not affect the Fund’s financial position or the results of its operations. An operating segment is defined in Topic 280 as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. The CODM is the President and Chief Executive Officer of the Fund. The Fund operates as a single operating segment. The Fund’s income, expenses, assets, changes in net assets resulting from operations and performance are regularly monitored and assessed as a whole by the CODM responsible for oversight functions of the Fund, using the information presented in the financial statements and financial highlights.
3. Investment Advisory Fee, Affiliated Transactions and Other Fee Arrangements
First Trust, the investment advisor to the Fund, is a limited partnership with one limited partner, Grace Partners of DuPage L.P., and one general partner, The Charger Corporation. The Charger Corporation is an Illinois corporation controlled by James A. Bowen, Chief Executive Officer of First Trust. First Trust is responsible for the selection and 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. For these investment management services, First Trust is entitled to a monthly fee calculated at an annual rate of 1.35% of the Fund’s Managed Assets. First Trust also provides fund reporting services to the Fund for a flat annual fee in the amount of $10,000. Prior to July 1, 2025, the financial reporting fee was $9,250.
The Bank of New York Mellon (“BNY”) serves as the Fund’s administrator, fund accountant and custodian in accordance with certain fee arrangements. As administrator and fund accountant, BNY is responsible for providing certain administrative and accounting
Page 27
Notes to Financial Statements (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
November 30, 2025 (Unaudited)
services to the Fund, including maintaining the Fund’s books of account, records of the Fund’s securities transactions, and certain other books and records. As custodian, BNY is responsible for custody of the Fund’s assets. BNY is a subsidiary of The Bank of New York Mellon Corporation, a financial holding company.
Computershare, Inc. (“Computershare”) serves as the Fund’s transfer agent in accordance with certain fee arrangements. As transfer agent, Computershare is responsible for maintaining shareholder records for the Fund.
Each Trustee who is not an officer or employee of First Trust, any sub-advisor or any of their affiliates (“Independent Trustees”) is paid a fixed annual retainer that is allocated equally among each fund in the First Trust Fund Complex. Each Independent Trustee is also paid an annual per fund fee that varies based on whether the fund is a closed-end or other actively managed fund, a target outcome fund or an index fund.
Additionally, the Chairs of the Audit Committee, Nominating and Governance Committee and Valuation, Risk and Regulatory Oversight Committee, the Vice Chair of the Audit Committee, the Lead Independent Trustee and the Vice Lead Independent Trustee are paid annual fees to serve in such capacities, with such compensation allocated pro rata among each fund in the First Trust Fund Complex based on net assets. Independent Trustees are reimbursed for travel and out-of-pocket expenses in connection with all meetings. The officers and “Interested” Trustee receive no compensation from the Fund for acting in such capacities.
4. Purchases and Sales of Securities
The cost of purchases and proceeds from sales of securities, excluding short-term investments, for the six months ended November 30, 2025, were $235,205,116 and $237,582,312, respectively.
5. Borrowings
The Fund has a committed facility agreement (the “Credit Agreement”) with The Toronto-Dominion Bank, New York Branch that has a maximum commitment amount of $230,000,000. The borrowing rate under the facility is equal to Term SOFR plus 1.05%. In addition, under the facility, the Fund pays a commitment fee of 0.35% per annum, unless the average daily principal outstanding amount during the applicable interest period is less than $130,000,000, in which case the unused commitment fee rate will equal 0.40% per annum. For the six months ended November 30, 2025, the average amount outstanding was $166,579,235 with a weighted average interest rate of 5.27%. As of November 30, 2025, the Fund had outstanding borrowings of $183,000,000, which approximates fair value, under the Credit Agreement. The borrowings are categorized as Level 2 within the fair value hierarchy. The high and low annual interest rates for the six months ended November 30, 2025 were 5.49% and 5.00%, respectively. The weighted average interest rate at November 30, 2025 was 5.02%.
6. Indemnification
The Fund has a variety of indemnification obligations under contracts with its service providers. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
7. Subsequent Events
Management has evaluated the impact of all subsequent events to the Fund through the date the financial statements were issued, and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements that have not already been disclosed.
Page 28
Additional Information
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
November 30, 2025 (Unaudited)
Dividend Reinvestment Plan
If your Common Shares are registered directly with the Fund or if you hold your Common Shares with a brokerage firm that participates in the Fund’s Dividend Reinvestment Plan (the “Plan”), unless you elect, by written notice to the Fund, to receive cash distributions, all dividends, including any capital gain distributions, on your Common Shares will be automatically reinvested by Computershare Trust Company N.A. (the “Plan Agent”), in additional Common Shares under the Plan. If you elect to receive cash distributions, you will receive all distributions in cash paid by check mailed directly to you by the Plan Agent, as the dividend paying agent.
If you decide to participate in the Plan, the number of Common Shares you will receive will be determined as follows:
(1)
If Common Shares are trading at or above net asset value (“NAV”) at the time of valuation, the Fund will issue new shares at a price equal to the greater of (i) NAV per Common Share on that date or (ii) 95% of the market price on that date.
(2)
If Common Shares are trading below NAV at the time of valuation, the Plan Agent will receive the dividend or distribution in cash and will purchase Common Shares in the open market, on the NYSE or elsewhere, for the participants’ accounts. It is possible that the market price for the Common Shares may increase before the Plan Agent has completed its purchases. Therefore, the average purchase price per share paid by the Plan Agent may exceed the market price at the time of valuation, resulting in the purchase of fewer shares than if the dividend or distribution had been paid in Common Shares issued by the Fund. The Plan Agent will use all dividends and distributions received in cash to purchase Common Shares in the open market within 30 days of the valuation date except where temporary curtailment or suspension of purchases is necessary to comply with federal securities laws. Interest will not be paid on any uninvested cash payments.
You may elect to opt-out of or withdraw from the Plan at any time by giving written notice to the Plan Agent, or by telephone at (866) 340-1104, in accordance with such reasonable requirements as the Plan Agent and the Fund may agree upon. If you withdraw or the Plan is terminated, you will receive a certificate for each whole share in your account under the Plan, and you will receive a cash payment for any fraction of a share in your account. If you wish, the Plan Agent will sell your shares and send you the proceeds, minus brokerage commissions.
The Plan Agent maintains all Common Shareholders’ accounts in the Plan and gives written confirmation of all transactions in the accounts, including information you may need for tax records. Common Shares in your account will be held by the Plan Agent in non-certificated form. The Plan Agent will forward to each participant any proxy solicitation material and will vote any shares so held only in accordance with proxies returned to the Fund. Any proxy you receive will include all Common Shares you have received under the Plan.
There is no brokerage charge for reinvestment of your dividends or distributions in Common Shares. However, all participants will pay a pro rata share of brokerage commissions incurred by the Plan Agent when it makes open market purchases.
Automatically reinvesting dividends and distributions does not mean that you do not have to pay income taxes due upon receiving dividends and distributions. Capital gains and income are realized although cash is not received by you. Consult your financial advisor for more information.
If you hold your Common Shares with a brokerage firm that does not participate in the Plan, you will not be able to participate in the Plan and any dividend reinvestment may be effected on different terms than those described above.
The Fund reserves the right to amend or terminate the Plan if in the judgment of the Board of Trustees the change is warranted. There is no direct service charge to participants in the Plan; however, the Fund reserves the right to amend the Plan to include a service charge payable by the participants. Additional information about the Plan may be obtained by writing Computershare, Inc., P.O. Box 43006, Providence, RI 02940-3006.
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Fund uses to determine how to vote proxies and information on how the Fund voted proxies relating to portfolio investments during the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 988-5891 or emailing [email protected]; (2) on the Fund’s website at www.ftportfolios.com; and (3) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
Portfolio Holdings
The Fund files portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant fiscal quarter on Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be publicly available on the
Page 29
Additional Information (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
November 30, 2025 (Unaudited)
SEC’s website at www.sec.gov. The Fund’s complete schedule of portfolio holdings for the second and fourth quarters of each fiscal year is included in the semi-annual and annual reports to shareholders, respectively, and is filed with the SEC on Form N-CSR. The semi-annual and annual report for the Fund is available to investors within 60 days after the period to which it relates. The Fund’s Forms N-PORT and Forms N-CSR are available on the SEC’s website listed above.
Submission of Matters to a Vote of Shareholders
The Fund held its Annual Meeting of Shareholders (the “Annual Meeting”) on September 4, 2025. At the Annual Meeting, James A. Bowen, Robert F. Keith, and Bronwyn Wright were elected by the Common Shareholders of the First Trust High Yield Opportunities 2027 Term Fund as Class III Trustees for a three-year term expiring at the Fund’s annual meeting of shareholders in 2028 (if held) and Thomas J. Driscoll was elected by the Common Shareholders of the First Trust High Yield Opportunities 2027 Term Fund as a Class II Trustee for a two-year term expiring at the Fund’s annual meeting of shareholders in 2027 (if held). The number of votes cast in favor of Mr. Bowen was 28,255,171 and the number of votes withheld was 1,516,411. The number of votes cast in favor of Mr. Keith was 28,201,552 and the number of votes withheld was 1,570,030. The number of votes cast in favor of Ms. Wright was 14,259,282 and the number of votes withheld was 15,512,300. The number of votes cast in favor of Mr. Driscoll was 28,277,552 and the number of votes withheld was 1,494,030. Richard E. Erickson, Denise M. Keefe, Niel B. Nielson and Thomas R. Kadlec are the other current and continuing Trustees.
Principal Risks
The Fund is a closed-end management investment company designed primarily as a long-term investment and not as a trading vehicle. The Fund is not intended to be a complete investment program and, due to the uncertainty inherent in all investments, there can be no assurance that the Fund will achieve its investment objective. The following discussion summarizes the principal risks associated with investing in the Fund, which includes the risk that you could lose some or all of your investment in the Fund. The Fund is subject to the informational requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940 and, in accordance therewith, files reports, proxy statements and other information that is available for review. The order of the below risk factors does not indicate the significance of any particular risk factor.
CDX Risk. CDX is an equally-weighted index of credit default swaps that is designed to track a representative segment of the credit default swap market (e.g., high yield). A credit default swap is a financial derivative that allows an investor to swap or offset their credit risk with that of another investor. CDX provides exposure to a basket of underlying credit default swaps in lieu of buying or selling credit default swaps on individual debt securities. The CDX investments in which the Fund will invest are cleared on an exchange. Regardless of whether the Fund buys or sells CDX credit protection, such investments can result in gains or losses that may exceed gains or losses the Fund would have incurred investing directly in high yield debt securities, which may impact the Fund’s net asset value. It is also possible that returns from CDX investments may not correlate with returns of the broader high yield credit market. There are additional costs associated with investing in CDX, including the payment of premiums when the Fund is a buyer of CDX credit protection. When the Fund sells CDX credit protection, it assumes additional credit risk. Investment exposure to CDX credit protection is subject to the risks of the underlying credit default swap obligations, which include general market risk, liquidity risk, credit risk and counterparty risk. Counterparty risk may be mitigated somewhat compared to buying or selling credit protection using individual credit default swaps because CDX investments are cleared on an exchange.
 
Consumer Discretionary Companies Risk. Consumer discretionary companies, such as retailers, media companies and consumer services companies, provide non-essential goods and services. These companies manufacture products and provide discretionary services directly to the consumer, and the success of these companies is tied closely to the performance of the overall domestic and international economy, interest rates, competition and consumer confidence. Success depends heavily on disposable household income and consumer spending. Changes in demographics and consumer tastes can also affect the demand for, and success of, consumer discretionary products in the marketplace.
 
Corporate Debt Obligations Risk. The market value of corporate debt obligations generally may be expected to rise and fall inversely with interest rates. The market value of corporate debt obligations also may be affected by factors directly related to the issuer, such as investors’ perceptions of the creditworthiness of the issuer, the issuer’s financial performance, perceptions of the issuer in the marketplace, performance of management of the issuer, the issuer’s capital structure and use of financial leverage and demand for the issuer’s goods and services. There is a risk that the issuers of corporate debt may not be able to meet their obligations on interest and/or principal payments at the time called for by an instrument. 
 
Credit Agency Risk. Credit ratings are determined by credit rating agencies and are only the opinions of such entities. Ratings assigned by a rating agency are not absolute standards of credit quality and do not evaluate market risk or the liquidity of securities. Any shortcomings or inefficiencies in credit rating agencies’ processes for determining credit ratings may adversely affect the credit
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ratings of securities held by the Fund or such credit rating agency’s ability to evaluate creditworthiness and, as a result, may adversely affect those securities’ perceived or actual credit risk.
 
Credit and Below-Investment Grade Securities Risk. Credit risk is the risk that the issuer or other obligated party of a debt security in the Fund’s portfolio will fail to pay, or it is perceived that it will fail to pay, dividends or interest and/or repay principal, when due. Below-investment grade instruments, including instruments that are not rated but judged to be of comparable quality, are commonly referred to as high yield securities or “junk” bonds and are considered speculative with respect to the issuer’s capacity to pay dividends or interest and repay principal and are more susceptible to default or decline in market value than investment grade securities due to adverse economic and business developments. High yield securities are often unsecured and subordinated to other creditors of the issuer. The market values for high yield securities tend to be very volatile, and these securities are generally less liquid than investment grade securities. For these reasons, an investment in the Fund is subject to the following specific risks: (i) increased price sensitivity to changing interest rates and to a deteriorating economic environment; (ii) greater risk of loss due to default or declining credit quality; (iii) adverse company specific events more likely to render the issuer unable to make dividend, interest and/or principal payments; (iv) negative perception of the high yield market which may depress the price and liquidity of high yield securities; (v) volatility; and (vi) liquidity.
 
Credit Default Swaps Risk. Credit default swap transactions involve greater risks than if the Fund had invested in the reference obligation directly. In addition to general market risks, credit default swaps are subject to liquidity risk, counterparty risk and credit risks. With respect to a reference obligation, a buyer will lose its investment and recover nothing should no event of default occur. For a seller, if an event of default were to occur, the value of the reference obligation received by the seller, coupled with the periodic payments previously received, may be less than the full notional value it pays to the buyer, resulting in a loss of value. When the Fund acts as a seller of a credit default swap agreement, it is exposed to the risks of leverage since if an event of default occurs with respect to a reference obligation, the seller must pay the buyer the full notional value of the reference obligation.
 
Current Market Conditions Risk. Current market conditions risk is the risk that a particular investment, or shares of the Fund in general, may fall in value due to current market conditions. As a means to fight inflation, the Federal Reserve and certain foreign central banks have raised interest rates; however, the Federal Reserve has recently lowered interest rates and may continue to do so. U.S. regulators have proposed several changes to market and issuer regulations which would directly impact the Fund, and any regulatory changes could adversely impact the Fund’s ability to achieve its investment strategies or make certain investments. 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. Additionally, challenges in commercial real estate markets, including high interest rates, declining valuations and elevated vacancies, could have a broader impact on financial markets. The ongoing adversarial political climate in the United States, as well as political and diplomatic events both domestic and abroad, have and may continue to have an adverse impact the U.S. regulatory landscape, markets and investor behavior, which could have a negative impact on the Fund’s investments and operations. The change in administration resulting from the 2024 United States national elections could result in significant impacts to international trade relations, tax and immigration policies, and other aspects of the national and international political and financial landscape, which could affect, among other things, inflation and the securities markets generally. Other unexpected political, regulatory and diplomatic events within the U.S. and abroad may affect investor and consumer confidence and may adversely impact financial markets and the broader economy. For example, ongoing armed conflicts between Russia and Ukraine in Europe and among Israel, Iran, Hamas and other militant groups in the Middle East, have caused and could continue to cause significant market disruptions and volatility within the markets in Russia, Europe, the Middle East and the United States. The hostilities and sanctions resulting from those hostilities have and could continue to have a significant impact on certain Fund investments as well as Fund performance and liquidity. The economies of the United States and its trading partners, as well as the financial markets generally, may be adversely impacted by trade disputes, including the imposition of tariffs, and other matters. For example, the United States has imposed trade barriers and restrictions on China. In addition, the Chinese government is engaged in a longstanding dispute with Taiwan, continually threatening an invasion. If the political climate between the United States and China does not improve or continues to deteriorate, if China were to attempt invading Taiwan, or if other geopolitical conflicts develop or worsen, economies, markets and individual securities may be adversely affected, and the value of the Fund’s assets may go down. A public health crisis and the ensuing policies enacted by governments and central banks may cause significant volatility and uncertainty in global financial markets, negatively impacting global growth prospects. As the COVID-19 global pandemic illustrated, such events may affect certain geographic regions, countries, sectors and industries more significantly than others. Advancements in technology may also adversely impact markets and the overall performance of the Fund. For instance, the economy may be significantly impacted by the advanced development and increased regulation of artificial intelligence. Additionally, cyber security breaches of both government and non-government entities could have negative impacts on infrastructure and the ability of such entities, including the Fund, to operate properly. These events, and any other future events, may adversely affect the prices and liquidity of the Fund’s portfolio investments and could result in disruptions in the trading markets.
 
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Cyber Security Risk. The Fund is susceptible to potential operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause the Fund to lose proprietary information, suffer data corruption or lose operational capacity. Such events could cause the Fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. Cyber security breaches may involve unauthorized access to the Fund’s digital information systems through “hacking” or malicious software coding, but may also result from outside attacks such as denial-of-service attacks through efforts to make network services unavailable to intended users. In addition, cyber security breaches of the Fund’s third-party service providers, such as its administrator, transfer agent or custodian, or issuers in which the Fund invests, can also subject the Fund to many of the same risks associated with direct cyber security breaches. The Fund has established risk management systems designed to reduce the risks associated with cyber security. However, there is no guarantee that such efforts will succeed, especially because the Fund does not directly control the cyber security systems of issuers or third party service providers. Substantial costs may be incurred by the Fund in order to resolve or prevent cyber incidents in the future.
 
Defaulted and Distressed Securities Risk. The Fund may invest in securities that may be in default or distressed—i.e., securities of companies whose financial condition is troubled or uncertain and that may be involved in bankruptcy proceedings, reorganizations or financial restructurings. Distressed securities present a substantial risk of future default which may cause the Fund to incur losses, including additional expenses, to the extent it is required to seek recovery upon a default in the payment of principal or interest on those securities. The Fund also will be subject to significant uncertainty as to when, in what manner and for what value the obligations evidenced by the defaulted or distressed securities will eventually be satisfied.
In addition, the Fund may invest in loans of borrowers that are experiencing, or are likely to experience, financial difficulty. These loans are subject to greater credit and liquidity risks than other types of loans. In addition, the Fund can invest in loans of borrowers that have filed for bankruptcy protection or that have had involuntary bankruptcy petitions filed against them by creditors. A bankruptcy proceeding or other court proceeding could delay or limit the ability of the Fund to collect the principal and interest payments on that borrower’s loans or adversely affect the Fund’s rights in collateral relating to a loan.
 
Earnings Risk. The Fund’s limited term may cause it to invest in lower yielding securities or hold the proceeds of securities sold near the end of its term in cash or cash equivalents, which may adversely affect the performance of the Fund or the Fund’s ability to maintain its dividend.
 
Emerging Markets Risk. Investing in emerging market countries, as compared to foreign developed markets, involves substantial additional risk due to more limited information about the issuer and/or the security (including limited financial and accounting information); higher brokerage costs; different accounting, auditing and financial reporting standards; less developed legal systems and thinner trading markets; the possibility of currency blockages or transfer restrictions; an emerging market country’s dependence on revenue from particular commodities or international aid; and the risk of expropriation, nationalization or other adverse political or economic developments.
Emerging market countries may lack the social, political and economic stability and characteristics of more developed countries, and their political and economic structures may undergo unpredictable, significant and rapid changes from time to time, any of which could adversely impact the value of investments in emerging markets as well as the availability of additional investments in such markets. The securities markets of emerging market countries may be substantially smaller, less developed, less liquid and more volatile than the major securities markets in the United States and other developed nations. The limited size of these securities markets and the limited trading volume of securities issued by emerging market issuers could cause prices to be erratic and investments in emerging markets can become illiquid. As a result of the foregoing risks, it may be difficult to assess the value or prospects of an investment in such securities.
 
Europe Risk. The Fund is subject to certain risks associated specifically with investments in securities of European issuers, in addition to the risks associated with investments in non-U.S. securities generally. Political or economic disruptions in European countries, even in countries in which the 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 (“EU”), and the member states no longer control their own monetary policies by directing independent interest rates for their currencies. 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. In a 2016 referendum, the United Kingdom elected to withdraw from the EU. After years of negotiations between the United Kingdom and the EU, a withdrawal agreement was reached whereby the United Kingdom formally left the EU. As the second largest economy among EU members, the implications of the United Kingdom’s withdrawal are difficult to gauge and cannot be fully known. Trade between the United Kingdom and the EU is highly integrated through supply chains and trade in services, as well as through multinational companies. The United Kingdom’s departure may negatively impact the EU and Europe as a whole by causing volatility within the EU, triggering prolonged economic downturns in certain European countries or sparking additional member states to contemplate departing the EU (thereby perpetuating political instability in the region).
 
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Financial Companies Risk. The Fund may invest in financial companies. Financial companies are subject to extensive governmental regulation and intervention, which may adversely affect the scope of their activities, the prices they can charge, the amount and types of capital they must maintain and, potentially, their size. Governmental regulation may change frequently and may have significant adverse consequences for financial companies, including effects not intended by such regulation. The impact of more stringent capital requirements, or recent or future regulation in various countries, on any individual financial company or on financial companies as a whole cannot be predicted. Certain risks may impact the value of investments in financial companies more severely than those of investments in other issuers, including the risks associated with companies that operate with substantial financial leverage. Financial companies may also be adversely affected by volatility in interest rates, loan losses and other customer defaults, decreases in the availability of money or asset valuations, credit rating downgrades and adverse conditions in other related markets. Insurance companies in particular may be subject to severe price competition and/or rate regulation, which may have an adverse impact on their profitability. Financial companies are also a target for cyber attacks and may experience technology malfunctions and disruptions as a result.
 
Foreign Currency Risk. Currency risk is the risk that fluctuations in exchange rates may adversely affect the value of the Fund’s investments. Currency exchange rates fluctuate significantly for many reasons, including changes in supply and demand in the currency exchange markets, actual or perceived changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks, or supranational agencies such as the International Monetary Fund, and currency controls or other political and economic developments in the U.S. or abroad.
 
Illiquid Securities Risk. The Fund invests a substantial portion of its assets in lower-quality debt issued by companies that are highly leveraged. Lower-quality debt tends to be less liquid than higher-quality debt. Moreover, smaller debt issues tend to be less liquid than larger debt issues. Although the resale or secondary market for senior loans is growing, it is currently limited. There is no organized exchange or board of trade on which senior loans are traded. Instead, the secondary market for senior loans is an unregulated inter-dealer or inter-bank resale market. In addition, senior loans in which the Fund invests may require the consent of the borrower and/or agent prior to the settlement of the sale or assignment. These consent requirements can delay or impede the Fund’s ability to settle the sale of senior loans. Depending on market conditions, the Fund may have difficulty disposing its senior loans, which may adversely impact its ability to obtain cash to repay debt, to pay dividends, to pay expenses or to take advantage of new investment opportunities.
Illiquid securities may be difficult to dispose of at a fair price at the times when the Fund believes it is desirable to do so. The market price of illiquid securities generally is more volatile than that of more liquid securities, which may adversely affect the price that the Fund pays for or recovers upon the sale of such securities. Illiquid securities are also more difficult to value, especially in challenging markets.
 
Inflation Risk. Inflation risk is the risk that the value of assets or income from investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the present value of the Fund’s assets and distributions may decline. This risk is more prevalent with respect to debt securities. Inflation creates uncertainty over the future real value (after inflation) of an investment. Inflation rates may change frequently and drastically as a result of various factors, including unexpected shifts in the domestic or global economy, and the Fund’s investments may not keep pace with inflation, which may result in losses to Fund investors.
 
Information Technology Companies Risk. Information technology companies produce and provide hardware, software and information technology systems and services.  Information technology companies are generally subject to the following risks: rapidly changing technologies and existing product obsolescence; short product life cycles; fierce competition; aggressive pricing and reduced profit margins; the loss of patent, copyright and trademark protections; cyclical market patterns; evolving industry standards; and frequent new product introductions and new market entrants.  Information technology companies may be smaller and less experienced companies, with limited product lines, markets or financial resources and fewer experienced management or marketing personnel.  Information technology company stocks, particularly those involved with the internet, have experienced extreme price and volume fluctuations that are often unrelated to their operating performance.  In addition, information technology companies are particularly vulnerable to federal, state and local government regulation, and competition and consolidation, both domestically and internationally, including competition from foreign competitors with lower production costs.  Information technology companies also face competition for services of qualified personnel and heavily rely on patents and intellectual property rights and the ability to enforce such rights to maintain a competitive advantage.
 
Interest Rate Risk. The yield on the Fund’s common shares may rise or fall as market interest rates rise and fall, as senior loans pay interest at rates which float in response to changes in market rates. Changes in prevailing interest rates can be expected to cause some fluctuation in the Fund’s net asset value. Similarly, a sudden and significant increase in market interest rates may cause a decline in the Fund’s net asset value.
 
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Leverage Risk. The use of leverage by the Fund can magnify the effect of any losses. If the income and gains from the securities and investments purchased with leverage proceeds do not cover the cost of leverage, the return to the common shares will be less than if leverage had not been used. Leverage involves risks and special considerations for common shareholders including: (i) the likelihood of greater volatility of net asset value and market price of the common shares than a comparable portfolio without leverage; (ii) the risk that fluctuations in interest rates on borrowings will reduce the return to the common shareholders or will result in fluctuations in the dividends paid on the common shares; (iii) in a declining market, the use of leverage is likely to cause a greater decline in the net asset value of the common shares than if the Fund were not leveraged, which may result in a greater decline in the market price of the common shares; and (iv) when the Fund uses certain types of leverage, the investment advisory fee payable to the Advisor will be higher than if the Fund did not use leverage.
 
Limited Term Risk. Because the assets of the Fund will be liquidated in connection with the Fund’s termination, the Fund may be required to sell portfolio securities when it otherwise would not, including at times when market conditions are not favorable, which may cause the Fund to lose money. In particular, the Fund’s portfolio may still have significant remaining average maturity and duration, and large exposures to lower-quality credits, as the termination date approaches, and if interest rates are high (and the value of lower-quality fixed-income securities consequently low) at the time the Fund needs to liquidate its assets in connection with the termination, the losses due to portfolio liquidation may be significant. Moreover, as the Fund approaches the termination date, its portfolio composition may change as more of its portfolio holdings are called or sold, which may cause the returns to decrease and the NAV of the Common Shares to fall. Rather than reinvesting the proceeds of matured, called or sold securities, the Fund may distribute the proceeds in one or more liquidating distributions prior to the final liquidation, which may cause fixed expenses to increase when expressed as a percentage of assets under management, or the Fund may invest the proceeds in lower yielding securities or hold the proceeds in cash, which may adversely affect its performance. Because the Fund will invest in below investment grade securities, it may be exposed to the greater potential for an issuer of its securities to default, as compared to a fund that invests solely in investment grade securities. As a result, should a Fund portfolio holding default, this may significantly reduce net investment income and, therefore, Common Share dividends, and also may prevent or inhibit the Fund from fully being able to liquidate its portfolio at or prior to the termination date. When terminated, the Fund’s final distribution will be based upon its NAV at the end of the term and investors in the Fund may receive more or less than their original investment.
 
Management Risk and Reliance on Key Personnel. The implementation of the Fund’s investment strategy depends upon the continued contributions of certain key employees of the Advisor, some of whom have unique talents and experience and would be difficult to replace. The loss or interruption of the services of a key member of the portfolio management team could have a negative impact on the Fund.
 
Market Discount from Net Asset Value. Shares of closed-end investment companies such as the Fund frequently trade at a discount from their net asset value. The Fund cannot predict whether its common shares will trade at, below or above net asset value.
 
Market Risk. Investments held by the Fund, as well as shares of the Fund itself, are subject to market fluctuations caused by real or perceived adverse economic conditions, political events, regulatory factors or market developments, changes in interest rates and perceived trends in securities prices. Shares of the 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, market manipulation, government defaults, government shutdowns, regulatory actions, political changes, diplomatic developments, the imposition of sanctions and other similar measures, spread of infectious diseases or other public health issues, recessions, natural disasters, or other events could have a significant negative impact on the Fund and its investments. Any of such circumstances could have a materially negative impact on the value of the Fund’s shares, the liquidity of an investment, and result in increased market volatility. During any such events, the Fund’s shares may trade at increased premiums or discounts to their net asset value, the bid/ask spread on the Fund’s shares may widen and the returns on investment may fluctuate.
 
Non-U.S. Securities Risk. The Fund may invest a portion of its assets in securities of non-U.S. issuers. Investing in securities of non-U.S. issuers, which are generally denominated in non-U.S. currencies, may involve certain risks not typically associated with investing in securities of U.S. issuers. These risks include: (i) there may be less publicly available information about non-U.S. issuers or markets due to less rigorous disclosure or accounting standards or regulatory practices; (ii) non-U.S. markets may be smaller, less liquid and more volatile than the U.S. market; (iii) potential adverse effects of fluctuations in currency exchange rates or controls on the value of the Fund’s investments; (iv) the economies of non-U.S. countries may grow at slower rates than expected or may experience a downturn or recession; (v) the impact of economic, political, social or diplomatic events; (vi) certain non-U.S. countries may impose restrictions on the ability of non-U.S. issuers to make payments of principal and interest to investors located in the United States due to blockage of non-U.S. currency exchanges or otherwise; and (vii) withholding and other non-U.S. taxes may decrease the Fund’s return. Foreign companies are generally not subject to the same accounting, auditing and financial reporting standards as are U.S. companies. In addition, there may be difficulty in obtaining or enforcing a court judgment abroad. These risks
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may be more pronounced to the extent that the Fund invests a significant amount of its assets in companies located in one region or in emerging markets.
 
Operational Risk. The Fund is subject to risks arising from various operational factors, including, but not limited to, human error, processing and communication errors, errors of the Fund’s service providers, counterparties or other third-parties, failed or inadequate processes and technology or systems failures. These errors or failures may adversely affect the Fund’s operations, including its ability to execute its investment process and calculate or disseminate its NAV in a timely manner. The Fund relies on third parties for a range of services, including custody, valuation, administration, transfer services, securities lending and accounting. Any delay or failure relating to engaging or maintaining such service providers may affect the Fund’s ability to meet its investment objective. Although the Fund and the Advisor seek to reduce these operational risks through controls and procedures, there is no way to completely protect against such risks.
 
Potential Conflicts of Interest Risk. First Trust and the portfolio managers have interests which may conflict with the interests of the Fund. In particular, First Trust currently manages and may in the future manage and/or advise other investment funds or accounts with the same or substantially similar investment objective and strategies as the Fund. In addition, while the Fund is using leverage, the amount of the fees paid to First Trust for investment advisory and management services are higher than if the Fund did not use leverage because the fees paid are calculated based on managed assets. Therefore, First Trust has a financial incentive to leverage the Fund.
 
Prepayment Risk. Loans and corporate bonds are subject to prepayment risk. Prepayment risk is the risk that the borrower on a loan or issuer of a bond will repay principal (in part or in whole) prior to the scheduled maturity date. The degree to which such repayment occurs may be affected by general business conditions, interest rates, the financial condition of the borrower or issuer and competitive conditions among investors, among others. As such, prepayments cannot be predicted with accuracy. Upon a prepayment, either in part or in full, the actual outstanding debt on which the Fund derives interest income will be reduced which, in turn, may result in a decline in distributions to common shareholders. The Fund may not be able to reinvest the proceeds received on terms as favorable as the prepaid loan or bond.
 
Reinvestment Risk. 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 instruments at market interest rates that are below the Fund’s portfolio’s current earnings rate. A decline in income could affect the common shares’ market price, level of distributions or the overall return of the Fund.
 
Second Lien Loan Risk. A second lien loan may have a claim on the same collateral pool as the first lien or it may be secured by a separate set of assets. Second lien loans are typically secured by a second priority security interest or lien on specified collateral securing the borrower’s obligation under the interest. Because second lien loans are second to first lien loans, they present a greater degree of investment risk. Specifically, these loans are subject to the additional risk that the cash flow of the borrower and property securing the loan may be insufficient to meet scheduled payments after giving effect to those loans with a higher priority. In addition, loans that have a lower than first lien priority on collateral of the borrower generally have greater price volatility than those loans with a higher priority and may be less liquid.
 
Senior Loan Risk. The Fund invests in senior loans and therefore is subject to the risks associated therewith.  Investments in senior loans are subject to the same risks as investments in other types of debt securities, including credit risk, interest rate risk, liquidity risk and valuation risk (which may be heightened because of the limited public information available regarding senior loans and because loan borrowers may be leveraged and tend to be more adversely affected by changes in market or economic conditions).  Further, no active trading market may exist for certain senior loans, which may impair the ability of the Fund to realize full value in the event of the need to sell a senior loan and which may make it difficult to value senior loans.  Senior loans may not be considered “securities” and the Fund may not be entitled to rely on the anti-fraud protections of the federal securities laws.
In the event a borrower fails to pay scheduled interest or principal payments on a senior loan held by the Fund, the Fund will experience a reduction in its income and a decline in the value of the senior loan, which will likely reduce dividends and lead to a decline in the net asset value of the Fund’s common shares. If the Fund acquires a senior loan from another lender, for example, by acquiring a participation, the Fund may also be subject to credit risks with respect to that lender. Although senior loans may be secured by specific collateral, the value of the collateral may not equal the Fund’s investment when the senior loan is acquired or may decline below the principal amount of the senior loan subsequent to the Fund’s investment. Also, to the extent that collateral consists of stock of the borrower or its subsidiaries or affiliates, the Fund bears the risk that the stock may decline in value, be relatively illiquid, and/or may lose all or substantially all of its value, causing the senior loan to be under collateralized. Therefore, the liquidation of the collateral underlying a senior loan may not satisfy the issuer’s obligation to the Fund in the event of non-payment of scheduled interest or principal, and the collateral may not be readily liquidated. The senior loan market has seen a significant increase in loans with weaker lender protections including, but not limited to, limited financial maintenance covenants or, in some cases, no financial maintenance covenants (i.e., “covenant-lite loans”) that would typically be included in a traditional loan agreement and general
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weakening of other restrictive covenants applicable to the borrower such as limitations on incurrence of additional debt, restrictions on payments of junior debt or restrictions on dividends and distributions. Weaker lender protections such as the absence of financial maintenance covenants in a loan agreement and the inclusion of “borrower-favorable” terms may impact recovery values and/or trading levels of senior loans in the future. The absence of financial maintenance covenants in a loan agreement generally means that the lender may not be able to declare a default if financial performance deteriorates. This may hinder the Fund’s ability to reprice credit risk associated with a particular borrower and reduce the Fund’s ability to restructure a problematic loan and mitigate potential loss. As a result, the Fund’s exposure to losses on investments in senior loans may be increased, especially during a downturn in the credit cycle or changes in market or economic conditions.
 
Sovereign Debt Securities Risk. The Fund may invest in sovereign debt securities. Sovereign debt securities are issued or guaranteed by foreign governmental entities. Investments in such securities are subject to the risk that the relevant sovereign government or governmental entity may delay or refuse to pay interest or repay principal on its debt. Such delays or refusals may be due to cash flow problems, insufficient foreign currency reserves, political considerations, the size of its debt relative to the economy or the failure to put in place economic reforms required by the International Monetary Fund or other multilateral agencies. A governmental entity may default on its obligations or may require renegotiation as to maturity or interest rate units of debt payments. Any restructuring of a sovereign debt obligation held by the Fund will likely have a significant adverse effect on the value of the obligation. A restricting or default of sovereign debt security may cause additional impacts on financial markets such as downgrades to credit ratings, disruptions in trading markets, reduced liquidity and increase volatility. Additionally, the Fund may be unable to pursue legal action against the sovereign issuer or to realize on collateral securing the debt. The sovereign debt of many non-U.S. governments, including their sub-divisions and instrumentalities, is rated below investment-grade.
 
Valuation Risk. The valuation of senior loans may carry more risk than that of common stock. Market quotations may not be readily available for some senior loans and securities in which the Fund invests and valuation may require more research than for liquid securities. In addition, elements of judgment may play a greater role in the valuation of senior loans and certain other securities than for securities with a secondary market, because there is less reliable objective data available.  These difficulties may lead to inaccurate asset pricing.  
 
 
NOT FDIC INSURED
NOT BANK GUARANTEED
MAY LOSE VALUE
Investment Management Agreement
Board Considerations Regarding Approval of the Continuation of the Investment Management Agreement
The Board of Trustees of First Trust High Yield Opportunities 2027 Term Fund (the “Fund”), including the Independent Trustees, unanimously approved the continuation of the Investment Management Agreement (the “Agreement”) between the Fund and First Trust Advisors L.P. (the “Advisor”). The Board approved the continuation of the Agreement for a one-year period ending June 30, 2026 at a meeting held on June 8–9, 2025.  The Board determined that the continuation of the Agreement is in the best interests of the Fund in light of the nature, extent and quality of the services provided and such other matters as the Board considered to be relevant in the exercise of its business judgment.
To reach this determination, the Board considered its duties under the Investment Company Act of 1940, as amended (the “1940 Act”), as well as under the general principles of state law, in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisors with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements.  At meetings held on April 22, 2025 and June 8–9, 2025, the Board, including the Independent Trustees, reviewed materials provided by the Advisor responding to requests for information from counsel to the Independent Trustees, submitted on behalf of the Independent Trustees, that, among other things, outlined: the services provided by the Advisor to the Fund (including the relevant personnel responsible for these services and their experience); the advisory fee rate payable by the Fund as compared to fees charged to a peer group of funds (the “Expense Group”) and a broad peer universe of funds (the “Expense Universe”), each assembled by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent source, and as compared to fees charged to other clients of the Advisor; the expense ratio of the Fund as compared to expense ratios of the funds in the Fund’s Expense Group and Expense Universe; performance information for the Fund, including comparisons of the Fund’s performance to that of one or more relevant benchmark indexes and to that of a performance group of funds and a broad performance universe of funds (the “Performance Universe”), each assembled by Broadridge; the nature of expenses incurred in providing services to the Fund and the potential for the Advisor to realize economies of scale, if any; profitability and other financial data for the Advisor; any indirect benefits to the Advisor; and information on the Advisor’s compliance program.  The Board reviewed initial materials with the Advisor at the meeting held on April 22, 2025, prior to which the Independent Trustees and their counsel met separately to discuss the information provided by the Advisor.  Following the April meeting, counsel to the Independent Trustees, on behalf of the Independent Trustees, requested certain clarifications and supplements to the materials provided, and the information provided in response to those
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Additional Information (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
November 30, 2025 (Unaudited)
requests was considered at an executive session of the Independent Trustees and their counsel held prior to the June 8–9, 2025 meeting, as well as at the June meeting.  The Board applied its business judgment to determine whether the arrangement between the Fund and the Advisor continues to be a reasonable business arrangement from the Fund’s perspective.  The Board determined that, given the totality of the information provided with respect to the Agreement, the Board had received sufficient information to renew the Agreement.  The Board considered that shareholders chose to invest or remain invested in the Fund knowing that the Advisor manages the Fund.
In reviewing the Agreement, the Board considered the nature, extent and quality of the services provided by the Advisor under the Agreement.  The Board considered that the Advisor is responsible for the overall management and administration of the Fund and reviewed all of the services provided by the Advisor to the Fund, as well as the background and experience of the persons responsible for such services.  The Board noted that the Advisor’s Leveraged Finance Investment Team is responsible for the day-to-day management of the Fund’s investments.  The Board considered the background and experience of the members of the Leveraged Finance Investment Team.  The Board considered the Advisor’s statement that it applies the same oversight model internally with its Leveraged Finance Investment Team as it uses for overseeing external sub-advisors, including portfolio risk monitoring and performance review.  In reviewing the services provided, the Board noted the compliance program that had been developed by the Advisor and considered that it includes a robust program for monitoring the Advisor’s and the Fund’s compliance with the 1940 Act, as well as the Fund’s compliance with its investment objective, policies and restrictions.  The Board also considered a report from the Advisor with respect to its risk management functions related to the operation of the Fund.  Finally, as part of the Board’s consideration of the Advisor’s services, the Advisor, in its written materials and at the April 22, 2025 meeting, described to the Board the scope of its ongoing investment in additional personnel and infrastructure to maintain and improve the quality of services provided to the Fund and the other funds in the First Trust Fund Complex.  In addition to the written materials provided by the Advisor, at the June 8–9, 2025 meeting, the Board also received a presentation from representatives of the Advisor’s Leveraged Finance Investment Team, who discussed the services that the Team provides to the Fund, including the Team’s day-to-day management of the Fund’s investments.  In light of the information presented and the considerations made, the Board concluded that the nature, extent and quality of the services provided to the Fund by the Advisor under the Agreement have been and are expected to remain satisfactory and that the Advisor has managed the Fund consistent with its investment objective, policies and restrictions.
The Board considered the advisory fee rate payable under the Agreement for the services provided.  The Board received and reviewed information showing the fee rates and expense ratios of the peer funds in the Expense Group, as well as advisory and unitary fee rates charged by the Advisor to other fund and non-fund clients, as applicable.  With respect to the Expense Group, the Board discussed with the Advisor limitations in creating a relevant peer group for the Fund, including that (i) the Fund is unique in its composition, which makes assembling peers with similar strategies and asset mix difficult; and (ii) none of the peer funds are term funds.  The Board took these limitations into account in considering the peer data.  Based on the information provided, the Board noted that the contractual advisory fee rate payable by the Fund, based on average managed assets, was above the median contractual advisory fee of the peer funds in the Expense Group.  With respect to fees charged to other clients, the Board considered differences between the Fund and other clients that limited their comparability.  In considering the advisory fee rate overall, the Board also considered the Advisor’s statement that it seeks to meet investor needs through innovative and value-added investment solutions and the Advisor’s demonstrated long-term commitment to the Fund and the other funds in the First Trust Fund Complex.
The Board considered performance information for the Fund.  The Board noted the process it has established for monitoring the Fund’s performance and portfolio risk on an ongoing basis, which includes quarterly performance reporting from the Advisor for the Fund.  The Board determined that this process continues to be effective for reviewing the Fund’s performance.  The Board received and reviewed information comparing the Fund’s performance for periods ended December 31, 2024 to the performance of the funds in the Performance Universe and to that of a benchmark index.  In reviewing the Fund’s performance as compared to the performance of the Performance Universe, the Board took into account the limitations described above with respect to creating a relevant peer group for the Fund.  Based on the information provided on net asset value performance, the Board noted that the Fund underperformed the Performance Universe median and the benchmark index for the one- and three-year periods ended December 31, 2024.  The Board noted the Advisor’s discussion of the Fund’s performance at the April 22, 2025 and June 8–9, 2025 meetings.  In addition, the Board considered information provided by the Advisor on the impact of leverage on the Fund’s returns.  The Board also received information on the Fund’s average trading discount for various periods and comparable information for a peer group.
On the basis of all the information provided on the fees, expenses and performance of the Fund and the ongoing oversight by the Board, the Board concluded that the advisory fee continues to be reasonable and appropriate in light of the nature, extent and quality of the services provided by the Advisor to the Fund under the Agreement.
The Board considered information and discussed with the Advisor whether there were any economies of scale in connection with providing advisory services to the Fund at current asset levels and whether the Fund may benefit from any economies of scale.  The Board noted the Advisor’s statement that it believes that its expenses relating to providing advisory services to the Fund will increase
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Additional Information (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
November 30, 2025 (Unaudited)
during the next twelve months as the Advisor continues to build infrastructure and add new staff.  The Board concluded that due to the Fund’s closed-end structure, the potential for realization of economies of scale as Fund assets grow was not a material factor to be considered.  The Board considered the revenues and allocated costs (including the allocation methodology) of the Advisor in serving as investment advisor to the Fund for the twelve months ended December 31, 2024 and the estimated profitability level for the Fund calculated by the Advisor based on such data, as well as complex-wide and product-line profitability data, for the same period.  The Board noted the inherent limitations in the profitability analysis and concluded that, based on the information provided, the Advisor’s profitability level for the Fund was not unreasonable.  In addition, the Board considered indirect benefits described by the Advisor that may be realized from its relationship with the Fund, including the Advisor’s compensation for fund reporting services pursuant to a separate Fund Reporting Services Agreement.  The Board also noted that the Advisor does not utilize soft dollars in connection with the Fund.  The Board concluded that the character and amount of potential indirect benefits to the Advisor were not unreasonable.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, unanimously determined that the terms of the Agreement continue to be fair and reasonable and that the continuation of the Agreement is in the best interests of the Fund.  No single factor was determinative in the Board’s analysis.
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INVESTMENT ADVISOR
First Trust Advisors L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
ADMINISTRATOR,
FUND ACCOUNTANT, AND
CUSTODIAN
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
TRANSFER AGENT
Computershare, Inc.
P.O. Box 43006
Providence, RI 02940
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
111 South Wacker Drive
Chicago, IL 60606
LEGAL COUNSEL
Chapman and Cutler LLP
320 South Canal Street
Chicago, IL 60606