First Trust
High Yield Opportunities 2027 Term Fund (FTHY)
Annual Report
For the Year Ended
May 31, 2026
 
 
 
Table of Contents
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Annual Report
May 31, 2026 
Caution Regarding Forward-Looking Statements
This report contains certain forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the goals, beliefs, plans or current expectations of First Trust Advisors L.P. (“First Trust” or the “Advisor”) and its representatives, taking into account the information currently available to them. Forward-looking statements include all statements that do not relate solely to current or historical fact. For example, forward-looking statements include the use of words such as “anticipate,” “estimate,” “intend,” “expect,” “believe,” “plan,” “may,” “should,” “would” or other words that convey uncertainty of future events or outcomes.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of First Trust High Yield Opportunities 2027 Term Fund (the “Fund”) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. When evaluating the information included in this report, you are cautioned not to place undue reliance on these forward-looking statements, which reflect the judgment of the Advisor and its representatives only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events and circumstances that arise after the date hereof.
Performance and Risk Disclosure
There is no assurance that the Fund will achieve its investment 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 Investment Objectives, Policies, Risks and Effects of Leverage section of this report for a discussion of certain other risks of investing in the Fund.
Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. For the most recent month-end performance figures, please visit www.ftportfolios.com or speak with your financial advisor. Investment returns, net asset value and common share price will fluctuate and Fund shares, when sold, may be worth more or less than their original cost.
The Advisor may also periodically provide additional information on Fund performance on the Fund’s web page at www.ftportfolios.com.
How to Read This Report
This report contains information that may help you evaluate your investment in the Fund. It includes details about the Fund and presents data and analysis that provide insight into the Fund’s performance and investment approach.
By reading the portfolio commentary by the portfolio management team of the Fund, you may obtain an understanding of how the market environment affected the Fund’s performance. The statistical information that follows may help you understand the Fund’s performance compared to that of a relevant market benchmark.
It is important to keep in mind that the opinions expressed by personnel of the Advisor are just that: informed opinions. They should not be considered to be promises or advice. The opinions, like the statistics, cover the period through the date on the cover of this report. The material risks of investing in the Fund are spelled out in the prospectus, the statement of additional information, this report and other Fund regulatory filings.
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
“AT A GLANCE”
As of May 31, 2026 (Unaudited)
 
Fund Statistics
Symbol on New York Stock Exchange
FTHY
Common Share Price
$13.83
Common Share Net Asset Value (“NAV”)
$14.21
Premium (Discount) to NAV
(2.67
)%
Net Assets Applicable to Common Shares
$522,666,667
Current Distribution per Common Share(1)
$0.1250
Current Annualized Distribution per Common Share
$1.5000
Current Distribution Rate on Common Share Price(2)
10.85
%
Current Distribution Rate on NAV(2)
10.56
%
Common Share Price & NAV (weekly closing price)
  
 
Performance
 
 
 
 
 
Average Annual
Total Returns
 
1 Year
Ended
5/31/26
5 Years
Ended
5/31/26
Inception
(6/25/20)
to 5/31/26
Fund Performance(3)
NAV
5.10
%
2.43
%
3.94
%
Market Value
6.77
%
3.15
%
3.46
%
Index Performance
ICE BofA US High Yield Constrained Index
7.43
%
4.36
%
5.87
%
 
(1)
Most recent distribution paid through May 31, 2026. 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 May 31, 2026. 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 May 31, 2026 (Unaudited)
 
Credit Quality (S&P Global Ratings)(4)
% of Total
Investments
BBB-
4.7%
BB+
10.7
BB
14.6
BB-
17.5
B+
11.2
B
20.4
B-
7.0
CCC+
8.0
CCC
3.4
NR
2.2
Money Market Funds
0.3
Total
100.0%
 
Top 10 Issuers
% of Total
Investments
1011778 BC ULC / New Red Finance, Inc.
2.1%
CRC Insurance Group LLC
1.9
US Foods, Inc.
1.5
Builders FirstSource, Inc.
1.4
Post Holdings, Inc.
1.4
OneDigital Borrower LLC
1.4
TransDigm, Inc.
1.3
Baldwin Insurance Group Holdings LLC / Baldwin
Insurance Group Holdings Finance
1.3
CCO Holdings LLC/CCO Holdings Capital Corp.
1.3
Cloud Software Group, Inc.
1.2
Total
14.8%
 
Industry Classification
% of Total
Investments
Insurance
10.9%
Hotels, Restaurants & Leisure
8.4
Media
7.8
Trading Companies & Distributors
5.5
Software
5.3
Health Care Providers & Services
5.3
Commercial Services & Supplies
3.8
Financial Services
3.6
IT Services
3.4
Oil, Gas & Consumable Fuels
3.3
Building Products
3.1
Food Products
3.1
Aerospace & Defense
2.4
Life Sciences Tools & Services
2.3
Containers & Packaging
2.3
Construction Materials
2.1
Electric Utilities
2.1
Consumer Staples Distribution & Retail
1.6
Household Durables
1.6
Diversified Consumer Services
1.3
Capital Markets
1.3
Professional Services
1.3
Specialty Retail
1.3
Machinery
1.1
Construction & Engineering
1.0
Diversified Telecommunication Services
1.0
Consumer Finance
1.0
Technology Hardware, Storage & Peripherals
1.0
Independent Power & Renewable Electricity Producers
1.0
Entertainment
1.0
Metals & Mining
0.9
Real Estate Management & Development
0.9
Household Products
0.9
Interactive Media & Services
0.8
Pharmaceuticals
0.7
Health Care Equipment & Supplies
0.7
Health Care Technology
0.7
Automobiles
0.6
Wireless Telecommunication Services
0.5
Automobile Components
0.5
Ground Transportation
0.4
Electronic Equipment, Instruments & Components
0.4
Beverages
0.3
Money Market Funds
0.3
Biotechnology
0.2
Chemicals
0.2
Textiles, Apparel & Luxury Goods
0.2
Personal Care Products
0.2
Mortgage Real Estate Investment Trusts
0.2
Energy Equipment & Services
0.1
Communications Equipment
0.1
Electrical Equipment
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. “NR” indicates no rating. 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 Commentary
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Annual Report
May 31, 2026 (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 May 31, 2026, the First Trust Leveraged Finance Team managed or supervised approximately $7.2 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
 
First Trust High Yield Opportunities 2027 Term Fund
The investment objective of the First Trust High Yield Opportunities 2027 Term Fund (“FTHY” or 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 First Trust Leveraged Finance Team 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”). 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.
Commentary
During the 12-month period ended May 31, 2026, the Fund returned(1) 5.10% based on net asset value (“NAV”) and 6.77% based on market price. This compares to the ICE BofA US High Yield Constrained Index’s (“the Benchmark”) return of 7.43% over the same period.
The following key factors impacted Fund performance relative to the Benchmark during the same period:
•
Industry: Relative to the Benchmark, the primary contributors to the Fund’s performance were its selection within media, and its selection and underweight within both leisure and transportation. Mitigating those tailwinds were the Fund’s selection and overweight to services, its overweight to insurance, and its underweight and selection within energy.
•
Asset Type: The Fund’s bond selection was a detractor to performance relative to the Benchmark. Additionally, the Fund’s allocation to loans was a headwind as bonds outperformed loans during the period (the Morningstar® LSTA® US Leveraged Loan Index returned 7.43% for the period). The Fund began the period with allocations of 80.82% to bonds and 19.18% to loans and ended the period with allocations of 88.68% to bonds and 11.32% to loans.
•
Credit Quality: The Fund increased its bias towards more defensive, higher-quality issuers during the period. Performance across the credit quality spectrum was positive during the period but generally higher rated assets outperformed those rated CCC & below. Despite lower returns for the Benchmark’s lowest-rated cohort during the period, the Fund benefited from its position in assets rated CCC & below, however the Fund’s selection within B and BB rated assets mitigated that benefit.
•
Leverage: The Fund’s use of leverage was the largest positive contributor to performance relative to the Benchmark. The Fund began the period with 22.13% leverage and ended the period with 21.01%.
•
U.S. Treasury Rates: Interest rates were relatively volatile during the period, however, the 10-Year U.S. Treasury yield ended the period nearly unchanged. The yield increased by a modest 4 basis points (“bps”) to 4.44% after entering the period at 4.40%. During the period, the yield fell to a low of 3.92% in March and reached a peak of 4.69% in May. Falling treasury rates are generally a tailwind to fixed income assets.
•
Bond Spreads, Yields and Prices: High-yield bond spreads over treasuries tightened by 58 bps to T+274 bps during the period
 
(1)
Total return is based on the combination of reinvested dividend, capital gain, and return of capital distributions, if any, at prices obtained by the Dividend Reinvestment Plan and changes in NAV per share for NAV returns and changes in Common Share price for market value returns. Total returns do not reflect sales load and are not annualized for periods of less than one year.
Page 3
Portfolio Commentary (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Annual Report
May 31, 2026 (Unaudited)
after rising from a low of T+264 bps in January and retreating from a peak of T+346 bps in March. While high-yield bond spreads ended the period below the long-term average of T+517 bps (December 1996 – May 2026), a yield-to-worst of 7.00% remains compelling. High-yield bond prices increased by $1.67 to $97.32 and remain at a discount to par ($100). (Bloomberg. Performance of high-yield bonds are based on the ICE BofA US High Yield Constrained Index.)
•
Defaults: The Fund experienced one default during the period, compared to 14 defaults in the JP Morgan High-Yield Bond Universe. Since inception, the Fund experienced three defaults, compared to 86 defaults in the JP Morgan High-Yield Bond Universe over the same timeframe. The high-yield bond market default rate increased from 0.43% at the beginning of the period to 1.18% at the end of the period but remained well below the long-term average of 2.79% (December 1998 – May 2026). The avoidance of defaults generally benefits performance.
Performance Analysis 
 
 
Average Annual
Total Returns
 
1 Year Ended
5/31/26
5 Years Ended
5/31/26
Inception (6/25/20)
to 5/31/26
Fund Performance(1)
NAV
5.10
%
2.43
%
3.94
%
Market Value
6.77
%
3.15
%
3.46
%
Index Performance
ICE BofA US High Yield Constrained Index
7.43
%
4.36
%
5.87
%
 
 
Performance figures assume reinvestment of all distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. An index is a statistical composite that tracks a specified financial market or sector. Unlike the Fund, the index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by the Fund. These expenses negatively impact the performance of the Fund. The Fund’s past performance does not predict future performance.
The Fund has a practice of seeking to maintain a relatively stable monthly distribution, which may be changed at any time. The practice has no impact on the Fund’s investment strategy and may reduce the Fund’s NAV. However, the Advisor believes the practice helps maintain the Fund’s competitiveness and may benefit the Fund’s market price and premium/discount to the Fund’s NAV. The monthly distribution rate was $0.1250 throughout the period. At the $0.1250 per share monthly distribution rate, the annualized distribution rate at May 31, 2026 was 10.56% at NAV and 10.85% at market price. For the twelve-month period ended May 31, 2026, 59.70% of the distributions were characterized as ordinary income and 40.30% were characterized as return of capital. The final determination of the source and tax status of all 2026 distributions will be made after end of 2026 and will be provided on Form 1099-DIV. The foregoing is not to be construed as tax advice. Please consult your tax advisor for further information regarding tax matters.
Page 4
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments
May 31, 2026
 
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
CORPORATE BONDS AND NOTES (a) – 92.9%
Advertising – 0.7%
$1,827,000
Clear Channel Outdoor Holdings, Inc. (b)
7.75
%
04/15/28
$1,832,419
1,409,000
Clear Channel Outdoor Holdings, Inc. (b)
7.88
%
04/01/30
1,469,235
564,000
Clear Channel Outdoor Holdings, Inc. (b)
7.13
%
02/15/31
583,493
 
3,885,147
Aerospace & Defense – 2.0%
316,000
Amentum Holdings, Inc. (b)
7.25
%
08/01/32
327,319
420,000
Axon Enterprise, Inc. (b)
6.13
%
03/15/30
429,146
280,000
Axon Enterprise, Inc. (b)
6.25
%
03/15/33
287,143
280,000
Carpenter Technology Corp. (b)
5.63
%
03/01/34
278,532
263,000
Moog, Inc. (b)
5.50
%
10/15/34
261,214
2,281,000
TransDigm, Inc. (b)
6.63
%
03/01/32
2,348,935
754,000
TransDigm, Inc. (b)
6.00
%
01/15/33
763,050
5,462,000
TransDigm, Inc. (b)
6.38
%
05/31/33
5,521,052
 
10,216,391
Alternative Carriers – 0.3%
1,717,000
Level 3 Financing, Inc. (b)
7.00
%
03/31/34
1,780,884
Aluminum – 0.3%
1,588,000
Novelis Corp. (b)
6.38
%
08/15/33
1,604,345
Apparel Retail – 0.3%
500,000
Nordstrom, Inc.
4.00
%
03/15/27
492,212
1,146,000
Nordstrom, Inc.
4.38
%
04/01/30
1,096,354
 
1,588,566
Apparel, Accessories & Luxury Goods – 0.1%
567,000
Under Armour, Inc. (b)
7.25
%
07/15/30
576,318
Application Software – 1.6%
1,831,000
Cloud Software Group, Inc. (b)
6.50
%
03/31/29
1,818,033
6,234,000
Cloud Software Group, Inc. (b)
9.00
%
09/30/29
6,165,306
2,445,875
GoTo Group, Inc. (b) (c)
5.50
%
05/01/28
556,437
 
8,539,776
Asset Management & Custody Banks – 0.9%
3,287,000
Osaic Holdings, Inc. (b)
6.75
%
08/01/32
3,320,731
1,464,000
Osaic Holdings, Inc. (b)
8.00
%
08/01/33
1,490,461
 
4,811,192
Automobile Manufacturers – 0.7%
3,369,000
Ford Motor Co.
9.63
%
04/22/30
3,857,209
Automotive Retail – 0.8%
1,819,000
Gee Automotive Holdings LLC (b)
7.25
%
03/01/31
1,839,566
2,341,000
Mavis Tire Express Services Topco Corp. (b)
6.50
%
05/15/29
2,340,071
 
4,179,637
Broadcasting – 3.6%
2,974,000
Gray Media, Inc. (b)
4.75
%
10/15/30
2,255,603
2,305,000
iHeartCommunications, Inc. (b)
4.75
%
01/15/28
2,199,362
1,485,000
Nexstar Media, Inc. (b)
4.75
%
11/01/28
1,462,524
2,747,000
Nexstar Media, Inc. (b)
6.50
%
09/15/33
2,770,838
3,567,000
Paramount Global
3.70
%
06/01/28
3,449,129
3,333,000
Sinclair Television Group, Inc. (b)
8.13
%
02/15/33
3,428,824
See Notes to Financial Statements
Page 5
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2026
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
CORPORATE BONDS AND NOTES (a) (Continued)
Broadcasting (Continued)
$3,318,000
Sirius XM Radio LLC (b)
4.00
%
07/15/28
$3,233,898
 
18,800,178
Building Products – 3.9%
1,414,000
Advanced Drainage Systems, Inc. (b)
6.38
%
06/15/30
1,432,991
1,424,000
Advanced Drainage Systems, Inc. (b)
5.38
%
03/01/34
1,390,837
9,304,000
Builders FirstSource, Inc. (b)
6.75
%
05/15/35
9,408,296
1,848,000
CP Atlas Buyer, Inc. (b)
9.75
%
07/15/30
1,740,470
971,000
Resideo Funding, Inc. (b)
6.50
%
07/15/32
977,420
1,622,000
Standard Building Solutions, Inc. (b)
6.50
%
08/15/32
1,647,774
999,000
Standard Building Solutions, Inc. (b)
6.25
%
08/01/33
1,001,241
1,392,000
Standard Building Solutions, Inc. (b)
5.88
%
03/15/34
1,358,165
574,000
Standard Industries, Inc. (b)
4.75
%
01/15/28
571,612
858,000
Standard Industries, Inc. (b)
4.38
%
07/15/30
817,902
 
20,346,708
Cable & Satellite – 4.8%
1,567,000
CCO Holdings LLC / CCO Holdings Capital Corp. (b)
6.38
%
09/01/29
1,575,136
1,184,000
CCO Holdings LLC / CCO Holdings Capital Corp. (b)
4.75
%
03/01/30
1,119,689
1,953,000
CCO Holdings LLC / CCO Holdings Capital Corp. (b)
4.50
%
08/15/30
1,819,021
3,219,000
CCO Holdings LLC / CCO Holdings Capital Corp. (b)
7.38
%
03/01/31
3,267,100
840,000
CCO Holdings LLC / CCO Holdings Capital Corp. (b)
7.00
%
02/01/33
821,629
250,000
CSC Holdings LLC (b)
3.38
%
02/15/31
139,297
4,635,000
CSC Holdings LLC (b)
4.50
%
11/15/31
2,634,279
7,058,000
DISH Network Corp. (b)
11.75
%
11/15/27
7,276,410
5,849,537
EchoStar Corp.
10.75
%
11/30/29
6,360,699
 
25,013,260
Casinos & Gaming – 2.7%
1,438,000
Boyd Gaming Corp. (b)
4.75
%
06/15/31
1,387,166
2,616,000
Churchill Downs, Inc. (b)
5.75
%
04/01/30
2,618,247
1,097,000
Fertitta Entertainment LLC / Fertitta Entertainment Finance Co.,
Inc. (b)
6.75
%
01/15/30
1,071,242
1,956,000
Light & Wonder International, Inc. (b)
7.50
%
09/01/31
2,039,807
1,812,000
Scientific Games Holdings, L.P. / Scientific Games US Finance
Co., Inc. (b)
6.63
%
03/01/30
1,566,264
2,694,000
Station Casinos LLC (b)
4.63
%
12/01/31
2,552,051
2,738,000
Station Casinos LLC (b)
6.63
%
03/15/32
2,780,183
 
14,014,960
Commercial & Residential Mortgage Finance – 3.6%
559,000
Freedom Mortgage Holdings LLC (b)
9.25
%
02/01/29
582,542
1,881,000
Freedom Mortgage Holdings LLC (b)
9.13
%
05/15/31
1,949,807
1,112,000
Freedom Mortgage Holdings LLC (b)
8.38
%
04/01/32
1,129,801
1,279,000
PennyMac Financial Services, Inc. (b)
6.88
%
05/15/32
1,253,431
1,474,000
PennyMac Financial Services, Inc. (b)
6.88
%
02/15/33
1,433,215
2,254,000
PennyMac Financial Services, Inc. (b)
6.75
%
02/15/34
2,162,697
1,100,000
Rocket Cos, Inc. (b)
7.13
%
02/01/32
1,140,318
6,430,000
Rocket Cos, Inc. (b)
6.38
%
08/01/33
6,537,709
3,092,000
UWM Holdings LLC (b)
6.25
%
03/15/31
2,841,247
 
19,030,767
Commodity Chemicals – 0.2%
1,028,000
Olin Corp. (b)
6.63
%
04/01/33
1,021,742
See Notes to Financial Statements
Page 6
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2026
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
CORPORATE BONDS AND NOTES (a) (Continued)
Communications Equipment – 0.1%
$549,000
Viavi Solutions, Inc. (b)
3.75
%
10/01/29
$521,254
Construction & Engineering – 1.3%
2,589,000
AECOM (b)
6.00
%
08/01/33
2,594,802
2,476,000
APi Group DE, Inc. (b)
5.75
%
06/01/34
2,468,579
55,000
Granite Construction, Inc. (b) (d)
6.38
%
06/15/34
56,266
273,000
Williams Scotsman, Inc. (b)
6.63
%
04/15/30
280,988
1,366,000
Williams Scotsman, Inc. (b)
7.38
%
10/01/31
1,427,183
 
6,827,818
Construction Materials – 2.5%
1,529,000
JH North America Holdings, Inc. (b)
6.13
%
07/31/32
1,534,140
6,628,000
Quikrete Holdings, Inc. (b)
6.75
%
03/01/33
6,729,793
725,000
Smyrna Ready Mix Concrete LLC (b)
6.00
%
11/01/28
727,301
4,003,000
Smyrna Ready Mix Concrete LLC (b)
8.88
%
11/15/31
4,223,195
 
13,214,429
Consumer Finance – 1.3%
560,000
EZCORP, Inc. (b)
7.38
%
04/01/32
594,181
3,056,000
FirstCash, Inc. (b)
4.63
%
09/01/28
3,014,148
2,904,000
FirstCash, Inc. (b)
6.88
%
03/01/32
2,989,558
 
6,597,887
Data Processing & Outsourced Services – 0.3%
843,000
Block, Inc. (b)
5.63
%
08/15/30
847,101
562,000
Block, Inc. (b)
6.00
%
08/15/33
562,608
 
1,409,709
Diversified Chemicals – 0.1%
274,000
Bond US Bidco 1, Inc./Bidco 2/Bidco 3/German Bidco 1
GmbH/German Bidco 2 (b)
7.13
%
06/15/33
276,363
Diversified Metals & Mining – 0.9%
3,421,000
SCIH Salt Holdings, Inc. (b)
4.88
%
05/01/28
3,384,678
1,107,000
SCIH Salt Holdings, Inc. (b)
6.63
%
05/01/29
1,096,371
 
4,481,049
Diversified Support Services – 0.9%
901,000
RB Global Holdings, Inc. (b)
6.75
%
03/15/28
916,151
3,897,000
RB Global Holdings, Inc. (b)
7.75
%
03/15/31
4,056,832
 
4,972,983
Education Services – 0.6%
3,156,000
Graham Holdings Co. (b)
5.63
%
12/01/33
3,107,649
Electric Utilities – 2.6%
1,929,000
Alpha Generation LLC (b)
6.75
%
10/15/32
1,975,221
4,553,000
Alpha Generation LLC (b)
6.25
%
01/15/34
4,516,647
2,929,000
NRG Energy, Inc. (b)
6.25
%
11/01/34
2,955,903
3,567,000
NRG Energy, Inc. (b)
6.00
%
01/15/36
3,545,498
641,000
Vistra Operations Co. LLC (b)
7.75
%
10/15/31
672,312
 
13,665,581
Electrical Components & Equipment – 0.1%
333,000
Sensata Technologies, Inc. (b)
3.75
%
02/15/31
312,466
See Notes to Financial Statements
Page 7
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2026
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
CORPORATE BONDS AND NOTES (a) (Continued)
Environmental & Facilities Services – 1.4%
$1,196,000
Allied Universal Holdco LLC (b)
7.88
%
02/15/31
$1,251,488
1,956,000
Allied Universal Holdco LLC / Allied Universal Finance Corp. (b)
6.88
%
06/15/30
2,001,763
568,000
Clean Harbors, Inc. (b)
5.75
%
10/15/33
571,160
2,949,000
Waste Pro USA, Inc. (b)
7.00
%
02/01/33
3,022,008
618,000
Wrangler Holdco Corp. (b)
6.63
%
04/01/32
635,127
 
7,481,546
Fertilizers & Agricultural Chemicals – 0.1%
273,000
FMC Corp. (b) (d)
8.00
%
06/01/31
285,493
Food Distributors – 1.9%
603,000
US Foods, Inc. (b)
4.75
%
02/15/29
595,032
5,250,000
US Foods, Inc. (b)
4.63
%
06/01/30
5,107,212
2,078,000
US Foods, Inc. (b)
7.25
%
01/15/32
2,162,107
2,079,000
US Foods, Inc. (b)
5.75
%
04/15/33
2,077,123
 
9,941,474
Footwear – 0.1%
660,000
Beach Acquisition Bidco LLC (10.00% cash or 10.75%
PIK) (b) (e)
10.00
%
07/15/33
730,399
Health Care Facilities – 2.8%
4,687,000
AHP Health Partners, Inc. (b)
5.75
%
07/15/29
4,650,054
309,000
Concentra Health Services, Inc. (b)
6.88
%
07/15/32
320,212
2,214,000
Encompass Health Corp. (b)
5.88
%
06/01/34
2,229,066
3,160,000
Select Medical Corp. (b)
6.25
%
12/01/32
3,081,413
3,294,000
Tenet Healthcare Corp.
6.13
%
10/01/28
3,304,086
690,000
Tenet Healthcare Corp. (b)
5.50
%
11/15/32
687,634
280,000
Tenet Healthcare Corp. (b)
6.00
%
11/15/33
282,935
 
14,555,400
Health Care Services – 1.8%
5,260,000
Raven Acquisition Holdings LLC (b)
6.88
%
11/15/31
5,161,808
4,130,000
Surgery Center Holdings, Inc. (b)
7.25
%
04/15/32
4,144,828
 
9,306,636
Health Care Supplies – 0.9%
4,488,000
Medline Borrower, L.P. (b)
5.25
%
10/01/29
4,482,732
Health Care Technology – 0.8%
4,398,000
AthenaHealth Group, Inc. (b)
6.50
%
02/15/30
4,243,341
Homebuilding – 1.0%
1,846,000
Dream Finders Homes, Inc. (b)
6.88
%
09/15/30
1,823,280
3,244,000
Installed Building Products, Inc. (b)
5.63
%
02/01/34
3,192,885
 
5,016,165
Homefurnishing Retail – 0.1%
282,000
Wayfair LLC (b)
6.75
%
11/15/32
286,707
Hotels, Resorts & Cruise Lines – 1.1%
3,802,000
Hilton Domestic Operating Co., Inc. (b)
5.50
%
09/15/31
3,826,061
1,200,000
Hilton Domestic Operating Co., Inc. (b)
6.13
%
04/01/32
1,224,068
284,000
RHP Hotel Properties L.P. / RHP Finance Corp. (b)
6.50
%
06/15/33
292,274
535,000
RHP Hotel Properties L.P. / RHP Finance Corp. (b)
5.75
%
03/15/34
531,024
 
5,873,427
See Notes to Financial Statements
Page 8
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2026
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
CORPORATE BONDS AND NOTES (a) (Continued)
Household Products – 1.1%
$1,746,000
Energizer Holdings, Inc. (b)
4.75
%
06/15/28
$1,726,736
4,009,000
Energizer Holdings, Inc. (b)
4.38
%
03/31/29
3,862,252
 
5,588,988
Housewares & Specialties – 0.4%
2,030,000
Newell Brands, Inc. (b)
8.50
%
06/01/28
2,120,786
Independent Power Producers & Energy Traders – 1.2%
1,068,000
Talen Energy Supply LLC (b)
6.38
%
05/01/33
1,064,729
841,000
Talen Energy Supply LLC (b)
6.25
%
02/01/34
838,629
4,592,000
Talen Energy Supply LLC (b)
6.50
%
02/01/36
4,621,453
 
6,524,811
Industrial Machinery & Supplies & Components – 0.8%
120,000
Esab Corp. (b)
5.63
%
04/01/31
120,895
752,000
Gates Corp. (The) (b)
6.88
%
07/01/29
775,148
1,408,000
LSF12 Helix Parent LLC (b)
7.13
%
02/01/33
1,383,237
2,161,000
Madison IAQ LLC (b)
5.88
%
06/30/29
2,162,806
 
4,442,086
Insurance Brokers – 6.4%
1,565,000
Acrisure LLC / Acrisure Finance, Inc. (b)
6.00
%
08/01/29
1,468,755
2,907,000
Acrisure LLC / Acrisure Finance, Inc. (b)
7.50
%
11/06/30
2,905,770
1,750,000
Acrisure LLC / Acrisure Finance, Inc. (b)
6.75
%
07/01/32
1,691,520
7,588,000
Alliant Holdings Intermediate LLC / Alliant Holdings
Co-Issuer (b)
6.75
%
04/15/28
7,662,249
8,561,000
Baldwin Insurance Group Holdings LLC / Baldwin Insurance
Group Holdings Finance (b)
7.13
%
05/15/31
8,603,052
2,092,000
BroadStreet Partners Group LLC (b)
5.88
%
04/15/29
2,069,580
6,359,000
CRC Insurance Group LLC (b)
7.13
%
06/01/31
6,382,274
2,775,000
HUB International Ltd. (b)
7.38
%
01/31/32
2,844,555
 
33,627,755
Interactive Home Entertainment – 0.3%
1,103,000
OAK-Eagle Acquireco, Inc. (b)
7.25
%
07/01/33
1,150,916
545,000
OAK-Eagle Acquireco, Inc. (b)
8.75
%
07/01/34
576,280
 
1,727,196
Interactive Media & Services – 1.0%
2,101,000
Cars.com, Inc. (b)
6.38
%
11/01/28
2,062,258
3,452,000
Snap, Inc. (b)
6.88
%
03/15/34
3,400,271
 
5,462,529
Internet Services & Infrastructure – 1.9%
2,280,000
Cipher Compute LLC (b)
7.13
%
11/15/30
2,379,639
1,657,000
Flash Compute LLC (b)
7.25
%
12/31/30
1,710,327
3,118,000
Go Daddy Operating Co. LLC / GD Finance Co., Inc. (b)
5.25
%
12/01/27
3,120,713
838,000
Meridian Arc Holdco LLC (b)
6.25
%
04/30/31
842,761
1,681,000
SV RNO Property Owner 1 LLC (b)
5.88
%
03/01/31
1,660,906
 
9,714,346
Investment Banking & Brokerage – 0.7%
923,000
Jane Street Group / JSG Finance, Inc. (b)
6.13
%
11/01/32
925,831
2,684,000
Jane Street Group / JSG Finance, Inc. (b)
6.75
%
05/01/33
2,762,094
 
3,687,925
See Notes to Financial Statements
Page 9
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2026
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
CORPORATE BONDS AND NOTES (a) (Continued)
IT Consulting & Other Services – 0.1%
$282,000
CACI International, Inc. (b)
6.38
%
06/15/33
$288,581
Leisure Facilities – 0.6%
876,000
Life Time, Inc. (b)
6.00
%
11/15/31
890,477
283,000
SeaWorld Parks & Entertainment, Inc. (b)
5.25
%
08/15/29
275,608
586,000
Six Flags Entertainment Corp. (b)
7.25
%
05/15/31
584,735
1,120,000
Six Flags Entertainment Corp. / Canada’s Wonderland Co. /
Millenium Operations LLC (b)
8.63
%
01/15/32
1,151,069
 
2,901,889
Life Sciences Tools & Services – 1.7%
3,153,000
Avantor Funding, Inc. (b)
4.63
%
07/15/28
3,121,891
986,000
Fortrea Holdings, Inc. (b)
7.50
%
07/01/30
994,620
2,802,000
IQVIA, Inc. (b)
6.50
%
05/15/30
2,875,516
1,150,000
IQVIA, Inc. (b)
6.25
%
06/01/32
1,176,278
889,000
Star Parent, Inc. (b)
9.00
%
10/01/30
934,395
 
9,102,700
Managed Health Care – 2.0%
3,320,000
Centene Corp.
4.63
%
12/15/29
3,235,415
2,000,000
Molina Healthcare, Inc. (b)
3.88
%
11/15/30
1,852,188
2,076,000
Molina Healthcare, Inc. (b)
3.88
%
05/15/32
1,862,796
3,396,000
Molina Healthcare, Inc. (b)
6.25
%
01/15/33
3,397,620
 
10,348,019
Metal, Glass & Plastic Containers – 0.1%
445,000
Crown Americas LLC
5.88
%
06/01/33
447,801
Mortgage REITs – 0.2%
795,000
Blackstone Mortgage Trust, Inc. (b)
6.25
%
06/01/31
782,503
272,000
Starwood Property Trust, Inc. (b)
6.13
%
06/01/31
275,172
 
1,057,675
Movies & Entertainment – 0.5%
3,812,000
Discovery Global Holdings, Inc.
5.14
%
03/15/52
2,606,455
Oil & Gas Equipment & Services – 0.1%
549,000
Solaris Energy Infrastructure LLC (b)
6.38
%
05/15/31
557,854
Oil & Gas Refining & Marketing – 2.4%
2,079,000
Sunoco L.P. (b)
5.63
%
03/15/31
2,082,503
5,056,000
Sunoco L.P. (b)
5.88
%
03/15/34
5,028,832
2,688,000
Venture Global LNG, Inc. (b)
8.38
%
06/01/31
2,798,528
2,560,000
Venture Global LNG, Inc. (b)
9.88
%
02/01/32
2,738,498
 
12,648,361
Oil & Gas Storage & Transportation – 1.7%
1,560,000
Rockies Express Pipeline LLC (b)
6.75
%
03/15/33
1,625,428
5,143,000
Venture Global Plaquemines LNG LLC (b)
7.50
%
05/01/33
5,678,479
1,439,000
Venture Global Plaquemines LNG LLC (b)
6.50
%
01/15/34
1,505,361
286,000
Venture Global Plaquemines LNG LLC (b)
7.75
%
05/01/35
321,220
 
9,130,488
Other Specialty Retail – 0.2%
690,000
PetSmart LLC / PetSmart Finance Corp. (b)
7.50
%
09/15/32
695,888
See Notes to Financial Statements
Page 10
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2026
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
CORPORATE BONDS AND NOTES (a) (Continued)
Other Specialty Retail (Continued)
$563,000
PetSmart LLC / PetSmart Finance Corp. (b)
10.00
%
09/15/33
$568,704
 
1,264,592
Packaged Foods & Meats – 3.8%
1,025,000
BellRing Brands, Inc. (b)
7.00
%
03/15/30
1,018,303
1,198,000
Fiesta Purchaser, Inc. (b)
7.88
%
03/01/31
1,205,847
2,154,000
Lamb Weston Holdings, Inc. (b)
4.38
%
01/31/32
2,016,519
3,312,000
Performance Food Group, Inc. (b)
6.13
%
09/15/32
3,352,589
3,241,000
Performance Food Group, Inc. (b)
5.63
%
03/01/34
3,169,571
3,354,000
Post Holdings, Inc. (b)
6.25
%
02/15/32
3,411,484
3,018,000
Post Holdings, Inc. (b)
6.38
%
03/01/33
3,012,109
2,799,000
Post Holdings, Inc. (b)
6.50
%
03/15/36
2,780,172
 
19,966,594
Paper & Plastic Packaging Products & Materials – 1.5%
547,000
Graphic Packaging International LLC (b)
3.50
%
03/15/28
529,700
3,959,000
Graphic Packaging International LLC (b)
3.75
%
02/01/30
3,715,367
1,923,000
Graphic Packaging International LLC (b)
6.38
%
07/15/32
1,941,478
1,418,000
Sword Purchaser LLC (b)
8.25
%
04/15/33
1,461,593
 
7,648,138
Personal Care Products – 0.2%
1,217,000
Prestige Brands, Inc. (b)
3.75
%
04/01/31
1,117,967
Rail Transportation – 0.5%
2,466,000
Genesee & Wyoming, Inc. (b)
6.25
%
04/15/32
2,506,235
Real Estate Operating Companies – 0.9%
1,108,000
Service Properties Trust (b)
(f)
09/30/27
1,030,222
958,000
Service Properties Trust (b)
8.63
%
11/15/31
1,011,588
2,359,000
Service Properties Trust
8.88
%
06/15/32
2,438,819
 
4,480,629
Real Estate Services – 0.3%
737,000
Cushman & Wakefield US Borrower LLC (b)
8.88
%
09/01/31
777,912
562,000
Taylor Morrison Communities, Inc. (b)
5.75
%
11/15/32
565,195
 
1,343,107
Research & Consulting Services – 1.4%
316,000
Clarivate Science Holdings Corp. (b)
3.88
%
07/01/28
305,831
1,929,000
Clarivate Science Holdings Corp. (b)
4.88
%
07/01/29
1,767,949
1,599,000
CoreLogic, Inc. (b)
4.50
%
05/01/28
1,571,663
1,862,000
Neptune Bidco US, Inc. (b)
9.29
%
04/15/29
1,905,048
1,125,000
Neptune Bidco US, Inc. (b)
10.38
%
05/15/31
1,176,322
265,000
Neptune Bidco US, Inc. (b)
9.50
%
02/15/33
271,413
283,000
Science Applications International Corp. (b)
5.88
%
11/01/33
279,631
 
7,277,857
Restaurants – 0.7%
515,000
Brinker International, Inc. (b)
8.25
%
07/15/30
538,384
269,000
Papa John’s International, Inc. (b)
3.88
%
09/15/29
258,688
2,692,000
Yum! Brands, Inc.
5.38
%
04/01/32
2,689,924
 
3,486,996
Security & Alarm Services – 0.7%
618,000
Brink’s Co. (The) (b)
6.50
%
06/15/29
633,734
See Notes to Financial Statements
Page 11
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2026
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
CORPORATE BONDS AND NOTES (a) (Continued)
Security & Alarm Services (Continued)
$2,999,000
Brink’s Co. (The) (b)
6.75
%
06/15/32
$3,075,144
 
3,708,878
Soft Drinks & Non-alcoholic Beverages – 0.4%
2,148,000
Primo Water Holdings, Inc. / Triton Water Holdings, Inc. (b)
6.25
%
04/01/29
2,155,205
Specialized Consumer Services – 0.5%
2,441,000
Wand NewCo 3, Inc. (b)
7.63
%
01/30/32
2,525,981
Systems Software – 1.2%
3,636,000
Gen Digital, Inc. (b)
7.13
%
09/30/30
3,707,549
1,179,000
SS&C Technologies, Inc. (b)
5.50
%
09/30/27
1,179,628
1,643,000
SS&C Technologies, Inc. (b)
6.50
%
06/01/32
1,658,510
 
6,545,687
Technology Hardware, Storage & Peripherals – 1.2%
6,598,000
Fair Isaac Corp. (b)
6.00
%
05/15/33
6,538,326
Trading Companies & Distributors – 6.1%
574,000
EquipmentShare.com, Inc. (b)
9.00
%
05/15/28
596,292
2,307,000
EquipmentShare.com, Inc. (b)
8.63
%
05/15/32
2,427,308
3,327,000
EquipmentShare.com, Inc. (b)
8.00
%
03/15/33
3,462,377
140,000
Herc Holdings, Inc. (b)
5.75
%
03/15/31
140,339
2,443,000
Herc Holdings, Inc. (b)
7.25
%
06/15/33
2,550,924
140,000
Herc Holdings, Inc. (b)
6.00
%
03/15/34
139,221
1,450,379
Park River Holdings, Inc. (b)
8.75
%
12/31/30
1,412,273
568,000
Park River Holdings, Inc. (b)
8.00
%
03/15/31
575,503
7,461,000
QXO Building Products, Inc. (b)
6.75
%
04/30/32
7,607,236
281,000
Synergy Infrastructure Holdings LLC (b)
7.88
%
12/01/30
295,104
7,381,000
United Rentals North America, Inc. (b)
6.00
%
12/15/29
7,514,220
919,000
WESCO Distribution, Inc. (b)
5.25
%
04/15/31
912,579
2,450,000
WESCO Distribution, Inc. (b)
6.38
%
03/15/33
2,518,921
1,719,000
White Cap Supply Holdings LLC (b)
7.38
%
11/15/30
1,714,744
 
31,867,041
Transaction & Payment Processing Services – 0.9%
4,462,000
Shift4 Payments LLC / Shift4 Payments Finance Sub, Inc. (b)
6.75
%
08/15/32
4,462,659
Total Corporate Bonds and Notes
485,739,725
(Cost $485,923,548)
FOREIGN CORPORATE BONDS AND NOTES (a)���– 17.3%
Aerospace & Defense – 0.6%
1,695,000
Bombardier, Inc. (b)
6.75
%
06/15/33
1,767,550
1,418,000
Phoenix Aviation Capital Ltd. (b)
9.25
%
07/15/30
1,462,783
 
3,230,333
Automotive Parts & Equipment – 0.6%
1,514,000
Clarios Global, L.P. / Clarios US Finance Co. (b)
6.75
%
02/15/30
1,565,915
1,414,000
Clarios Global, L.P. / Clarios US Finance Co. (b)
6.75
%
09/15/32
1,449,590
 
3,015,505
Biotechnology – 0.3%
1,580,000
Genmab A/S / Genmab Finance LLC (b)
6.25
%
12/15/32
1,610,801
Casinos & Gaming – 0.6%
3,209,000
Flutter Treasury DAC (b)
5.88
%
06/04/31
3,174,279
See Notes to Financial Statements
Page 12
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2026
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
FOREIGN CORPORATE BONDS AND NOTES (a) (Continued)
Data Processing & Outsourced Services – 0.4%
$2,498,000
Paysafe Finance PLC / Paysafe Holdings US Corp. (b)
4.00
%
06/15/29
$2,186,227
Diversified Support Services – 0.7%
3,421,000
Albion Financing 1 SARL / Aggreko Holdings, Inc. (b)
7.00
%
05/21/30
3,534,269
Environmental & Facilities Services – 0.5%
2,750,000
GFL Environmental, Inc. (b)
6.75
%
01/15/31
2,842,892
Homebuilding – 0.6%
3,411,000
Mattamy Group Corp. (b)
6.00
%
12/15/33
3,258,358
Hotels, Resorts & Cruise Lines – 1.9%
1,665,000
Carnival Corp. Ltd. (b)
5.88
%
06/15/31
1,692,105
1,712,000
Carnival Corp. Ltd. (b)
5.75
%
08/01/32
1,731,572
285,000
Viking Cruises Ltd. (b) (c)
5.88
%
10/15/33
285,740
6,401,000
Viking Ocean Cruises Ship VII Ltd. (b) (c)
5.63
%
02/15/29
6,406,989
 
10,116,406
Insurance Brokers – 3.0%
5,752,000
Ardonagh Finco Ltd. (b)
7.75
%
02/15/31
5,805,413
1,261,000
Ardonagh Group Finance Ltd. (b)
8.88
%
02/15/32
1,230,908
3,804,000
Howden UK Refinance PLC / Howden UK Refinance 2 PLC /
Howden US Refinance LLC (b)
7.25
%
02/15/31
3,772,931
3,212,000
Howden UK Refinance PLC / Howden UK Refinance 2 PLC /
Howden US Refinance LLC (b)
8.13
%
02/15/32
2,973,534
1,661,000
Jones Deslauriers Insurance Management, Inc. (b)
8.50
%
03/15/30
1,695,406
 
15,478,192
IT Consulting & Other Services – 0.7%
4,000,000
Elastic NV (b)
4.13
%
07/15/29
3,832,226
Life Sciences Tools & Services – 0.4%
1,800,000
Icon Investments Six DAC
5.85
%
05/08/29
1,833,033
Metal, Glass & Plastic Containers – 1.3%
3,304,000
Ardagh Metal Packaging Finance USA LLC / Ardagh Metal
Packaging Finance PLC (b)
6.25
%
01/30/31
3,331,575
3,510,000
Canpack SA / Canpack US LLC (b)
3.88
%
11/15/29
3,322,431
 
6,654,006
Pharmaceuticals – 0.9%
4,426,000
Opal Bidco SAS (b)
6.50
%
03/31/32
4,512,542
Restaurants – 2.6%
14,344,000
1011778 BC ULC / New Red Finance, Inc. (b)
4.00
%
10/15/30
13,605,093
Security & Alarm Services – 0.4%
158,000
Garda World Security Corp. (b)
8.25
%
08/01/32
162,176
1,992,000
Garda World Security Corp. (b)
8.38
%
11/15/32
2,065,875
 
2,228,051
Specialized Consumer Services – 0.6%
3,073,000
Belron UK Finance PLC (b)
5.75
%
10/15/29
3,100,725
Trading Companies & Distributors – 0.6%
3,087,000
Azorra Finance Ltd. (b)
6.25
%
02/15/34
2,979,760
See Notes to Financial Statements
Page 13
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2026
Principal
Value
Description
Stated
Coupon
Stated
Maturity
Value
FOREIGN CORPORATE BONDS AND NOTES (a) (Continued)
Wireless Telecommunication Services – 0.6%
$3,579,000
Ziggo BV (b)
4.88
%
01/15/30
$3,348,913
Total Foreign Corporate Bonds and Notes
90,541,611
(Cost $90,494,491)
Principal
Value
Description
Rate (g)
Stated
Maturity (h)
Value
SENIOR FLOATING-RATE LOAN INTERESTS (a) – 14.0%
Advertising – 0.4%
1,858,057
WH Borrower LLC (WHP), Term Loan B, 3 Mo. CME Term
SOFR + 4.50%, 0.50% Floor
8.14
%
02/20/32
1,863,093
Aerospace & Defense – 0.4%
1,658,759
Phoenix Aviation Capital Ltd., Term Loan B, 3 Mo. CME Term
SOFR + 3.25%, 0.00% Floor
6.91
%
10/28/30
1,643,208
278,944
VistaJet Malta Finance PLC, Inc., Term Loan B, 3 Mo. CME Term
SOFR + 3.75%, 0.00% Floor
7.44
%
03/31/31
277,316
 
1,920,524
Application Software – 3.3%
7,026,434
Darktrace PLC (Leia Finco US LLC), Second Lien Term Loan, 3
Mo. CME Term SOFR + 5.25%, 0.00% Floor
8.93
%
10/12/32
6,490,668
2,175,269
Internet Brands, Inc. (Web MD / MH Sub I. LLC), Term Loan B-3,
1 Mo. CME Term SOFR + 4.25%, 0.50% Floor
7.87
%
05/03/28
2,111,544
2,696,757
LogMeIn, Inc. (GoTo Group, Inc.), First Lien First Out TL, 3 Mo.
CME Term SOFR + CSA + 4.75%, 0.00% Floor
8.58
%
04/30/28
2,251,793
1,453,652
McAfee Corp. (Condor Merger Sub, Inc.), Term Loan B-1, 1 Mo.
CME Term SOFR + 3.00%, 0.50% Floor
6.62
%
03/01/29
1,324,378
2,138,520
Qlik Technologies (Project Alpha Intermediate Holding, Inc.),
Second Lien Term Loan, 3 Mo. CME Term SOFR + 5.00%,
0.50% Floor
8.70
%
05/09/33
1,264,400
1,554,302
SolarWinds Holdings, Inc. (Starlight Parent LLC), Term Loan B, 3
Mo. CME Term SOFR + 4.00%, 0.00% Floor
7.67
%
04/16/32
1,292,985
2,930,946
Solera Holdings, Inc. (Polaris Newco LLC), Term Loan B, 3 Mo.
CME Term SOFR + CSA + 4.00%, 0.50% Floor
7.93
%
06/04/28
2,634,481
 
17,370,249
Cable & Satellite – 0.2%
1,056,555
DIRECTV Holdings LLC, Term Loan B 2029, 3 Mo. CME Term
SOFR + CSA + 5.25%, 0.75% Floor
9.18
%
08/02/29
1,064,479
Casinos & Gaming – 0.3%
1,720,000
Golden Nugget, Inc. (Fertitta Entertainment LLC), Refi Term Loan,
1 Mo. CME Term SOFR + 3.25%, 0.50% Floor
6.87
%
01/29/29
1,716,620
Construction Materials – 0.1%
623,655
Smyrna Ready Mix Concrete LLC, Term Loan B, 1 Mo. CME
Term SOFR + 3.00%, 0.00% Floor
6.62
%
04/02/29
625,607
Data Processing & Outsourced Services – 0.5%
3,077,904
Consilio (Skopima Consilio Parent LLC), Refi Term Loan B, 1
Mo. CME Term SOFR + 3.75%, 0.50% Floor
7.37
%
05/17/28
2,477,713
Electronic Equipment & Instruments – 0.5%
1,276,175
Convergint Technologies (DG Investment Intermediate Holdings 2,
Inc.), Second Lien Term Loan, 1 Mo. CME Term SOFR + 5.50%,
0.00% Floor
9.12
%
07/29/33
1,277,770
See Notes to Financial Statements
Page 14
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2026
Principal
Value
Description
Rate (g)
Stated
Maturity (h)
Value
SENIOR FLOATING-RATE LOAN INTERESTS (a) (Continued)
Electronic Equipment & Instruments (Continued)
$1,128,008
VeriFone Systems, Inc., Extended Term Loan, 3 Mo. CME Term
SOFR + CSA + 5.50%, 0.00% Floor
9.18
%
08/21/28
$1,069,075
 
2,346,845
Food Distributors – 0.1%
757,539
C&S Wholesale Grocers LLC, Term Loan B, 3 Mo. CME Term
SOFR + 5.00%, 0.00% Floor
8.70
%
09/23/30
731,972
Industrial Machinery & Supplies & Components – 0.5%
2,515,764
Filtration Group Corp., Term Loan B, 1 Mo. CME Term SOFR +
2.50%, 0.50% Floor
6.12
%
10/23/28
2,522,318
Insurance Brokers – 4.2%
1,949,939
Acrisure LLC, Term Loan B-6 2030, 1 Mo. CME Term SOFR +
3.00%, 0.00% Floor
6.62
%
11/06/30
1,856,098
2,821,200
Alera Group Intermediate Holdings, Inc., Second Lien Term Loan,
1 Mo. CME Term SOFR + 5.50%, 0.50% Floor
9.12
%
05/30/33
2,742,206
2,659,213
Broadstreet Partners Group, Inc., Term Loan B-5, 1 Mo. CME
Term SOFR + 2.50%, 0.00% Floor
6.12
%
06/16/31
2,628,526
5,772,320
CRC Insurance Group LLC (f/k/a Truist Insurance), Second Lien
Term Loan, 3 Mo. CME Term SOFR + 4.75%, 0.00% Floor
8.45
%
05/06/32
5,725,160
9,423,929
OneDigital Borrower LLC, Second Lien Term Loan, 1 Mo. CME
Term SOFR + 5.25%, 0.50% Floor
8.87
%
07/02/32
9,188,331
 
22,140,321
Integrated Telecommunication Services – 1.0%
4,958,910
Numericable U.S. LLC (Altice France SAS), Term Loan B-14, 3
Mo. CME Term SOFR + 6.88%, 0.00% Floor
10.55
%
05/15/31
5,041,055
Internet Services & Infrastructure – 0.1%
376,205
CoreWeave Financing DDTL V LLC, Delayed Draw Term Loan, 1
Mo. CME Term SOFR + 4.50%, 0.00% Floor
8.10
%
11/17/31
384,587
IT Consulting & Other Services – 0.3%
1,633,694
Gainwell Acquisition Corp. (f/k/a Milano), Term Loan B, 3 Mo.
CME Term SOFR + CSA + 4.00%, 0.75% Floor
7.80
%
10/01/27
1,608,371
Life Sciences Tools & Services – 0.7%
3,871,609
Syneos Health, Inc. (Star Parent, Inc.), Term Loan B, 3 Mo. CME
Term SOFR + 4.00%, 0.00% Floor
7.70
%
09/30/30
3,883,379
Movies & Entertainment – 0.4%
1,900,347
Discovery Global Holdings, Inc., Term Loan B, 1 Mo. SOFR +
2.50%. 0.00% floor
6.12
%
06/30/33
1,905,991
Other Specialty Retail – 0.2%
1,040,118
PetSmart, Inc., Term Loan B, 1 Mo. CME Term SOFR + 4.00%,
0.00% Floor
7.58
%
08/18/32
1,039,146
Research & Consulting Services – 0.2%
1,275,437
Clarivate Analytics PLC (Camelot), 2025 Incremental Term Loan,
1 Mo. CME Term SOFR + 3.25%, 0.00% Floor
6.87
%
01/31/31
1,213,259
Systems Software – 0.4%
1,821,938
Idera, Inc. (Flash Charm), Second Lien Term Loan, 3 Mo. CME
Term SOFR + 6.75%, 0.75% Floor
10.56
%
03/02/29
1,117,085
131,425
Kaseya, Inc., Second Lien Term Loan, 3 Mo. CME Term SOFR +
5.00%, 0.00% Floor
8.66
%
03/21/33
100,671
See Notes to Financial Statements
Page 15
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2026
Principal
Value
Description
Rate (g)
Stated
Maturity (h)
Value
SENIOR FLOATING-RATE LOAN INTERESTS (a) (Continued)
Systems Software (Continued)
$1,007,275
KnowBe4, Inc., Term Loan B, 3 Mo. CME Term SOFR + 3.75%,
0.00% Floor
7.41
%
07/26/32
$865,315
 
2,083,071
Trading Companies & Distributors – 0.2%
412,580
Veritiv Corp. (Verde Purchaser LLC), Term Loan B, 3 Mo. CME
Term SOFR + 4.00%, 0.00% Floor
7.70
%
11/29/30
397,250
561,269
White Cap Supply Holdings LLC, Term Loan B, 1 Mo. CME Term
SOFR + 3.25%, 0.00% Floor
6.87
%
10/29/29
558,595
 
955,845
Total Senior Floating-Rate Loan Interests
72,894,445
(Cost $77,095,596)
 
Shares
Description
Value
COMMON STOCKS – 0.0%
Pharmaceuticals – 0.0%
220,989
Akorn, Inc. (i) (j) (k)
8,840
(Cost $2,534,056)
MONEY MARKET FUNDS (a) – 0.3%
1,637,978
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class - 3.49% (l)
1,637,978
(Cost $1,637,978)
Total Investments – 124.5%
650,822,599
(Cost $657,685,669)
Outstanding Loan – (26.6)%
(139,000,000
)
Net Other Assets and Liabilities – 2.1%
10,844,068
Net Assets – 100.0%
$522,666,667
 
(a)
All or a portion of these securities serve as collateral for the outstanding loan unless otherwise indicated. At May 31, 2026, the
segregated value of these securities amounts to $643,564,593.
(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 Fund’s 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 May 31, 2026, securities noted as such amounted to $544,470,200 or 104.2%
of net assets.
(c)
This security does not serve as collateral for the outstanding loan.
(d)
When-issued security. The interest rate shown reflects the rate in effect at May 31, 2026. Interest will begin accruing on the
security’s first settlement date (see Note 2B - Securities Transactions and Investment Income in the Notes to Financial
Statements).
(e)
The issuer will pay interest in cash and/or in PIK interest.
(f)
Zero coupon security.
(g)
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.
(h)
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.
(i)
This issuer has filed for protection in bankruptcy court.
See Notes to Financial Statements
Page 16
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Portfolio of Investments (Continued)
May 31, 2026
(j)
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).
(k)
Non-income producing security.
(l)
Rate shown reflects yield as of May 31, 2026.
 
Abbreviations throughout the Portfolio of Investments:
CME
– Chicago Mercantile Exchange
CSA
– Credit Spread Adjustment
PIK
– Payment-in-kind
REITs
– Real Estate Investment Trusts
SOFR
– Secured Overnight Financing Rate
Valuation Inputs
A summary of the inputs used to value the Fund’s investments as of May 31, 2026 is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial Statements): 
 
Total
Value at
5/31/2026
Level 1
Quoted
Prices
Level 2
Significant
Observable
Inputs
Level 3
Significant
Unobservable
Inputs
Corporate Bonds and Notes*
$485,739,725
$—
$485,739,725
$—
Foreign Corporate Bonds and Notes*
90,541,611
—
90,541,611
—
Senior Floating-Rate Loan Interests*
72,894,445
—
72,894,445
—
Common Stocks*
8,840
—
8,840
—
Money Market Funds
1,637,978
1,637,978
—
—
Total Investments
$650,822,599
$1,637,978
$649,184,621
$—
 
*
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
May 31, 2026
 
ASSETS:
Investments, at value
$ 650,822,599
Receivables:
Interest
9,912,271
Investment securities sold
6,660,264
Reclaims
16,073
Prepaid expenses
30,609
Unrealized appreciation on unfunded loan commitments
3,638
Total Assets
667,445,454
LIABILITIES:
Outstanding loan
139,000,000
Payables:
Investment securities purchased
4,282,199
Investment advisory fees
752,178
Interest and fees on loan
587,204
Audit and tax fees
66,578
Administrative fees
32,845
Shareholder reporting fees
31,287
Trustees’ fees and expenses
9,903
Legal fees
5,513
Custodian fees
4,366
Transfer agent fees
3,534
Financial reporting fees
833
Other liabilities
2,347
Total Liabilities
144,778,787
NET ASSETS
$522,666,667
NET ASSETS consist of:
Paid-in capital
$ 644,596,443
Par value
367,730
Accumulated distributable earnings (loss)
(122,297,506
)
NET ASSETS
$522,666,667
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share)
$14.21
Number of Common Shares outstanding (unlimited number of Common Shares has been authorized)
36,772,989
Investments, at cost
$657,685,669
See Notes to Financial Statements
Page 18
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Statement of Operations
For the Year Ended May 31, 2026
 
INVESTMENT INCOME:
Interest
$ 50,529,377
Other
 181,912
Total investment income
50,711,289
EXPENSES:
Investment advisory fees
 9,536,251
Interest and fees on loan
 8,640,581
Administrative fees
 367,547
Shareholder reporting fees
 121,018
Audit and tax fees
 66,067
Trustees’ fees and expenses
 58,341
Legal fees
 40,324
Listing fees
 36,657
Transfer agent fees
 24,085
Custodian fees
 12,605
Financial reporting fees
 9,938
Other
 31,143
Total expenses
18,944,557
NET INVESTMENT INCOME (LOSS)
31,766,732
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments
(1,275,365
)
Net change in unrealized appreciation (depreciation) on:
Investments
(5,160,512
)
Unfunded loan commitments
2,951
Net change in unrealized appreciation (depreciation)
(5,157,561
)
NET REALIZED AND UNREALIZED GAIN (LOSS)
(6,432,926
)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
$ 25,333,806
See Notes to Financial Statements
Page 19
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
Statements of Changes in Net Assets
 
 
Year
Ended
5/31/2026
Year
Ended
5/31/2025
OPERATIONS:
Net investment income (loss)
$ 31,766,732
$ 32,013,740
Net realized gain (loss)
 (1,275,365
)
 (10,526,510
)
Net change in unrealized appreciation (depreciation)
 (5,157,561
)
 23,990,789
Net increase (decrease) in net assets resulting from operations
25,333,806
45,478,019
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment operations
 (32,928,527
)
 (32,764,110
)
Return of capital
 (22,230,956
)
 (23,314,698
)
Total distributions to shareholders
(55,159,483
)
(56,078,808
)
Total increase (decrease) in net assets
 (29,825,677
)
 (10,600,789
)
NET ASSETS:
Beginning of period
 552,492,344
 563,093,133
End of period
$ 522,666,667
$ 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 Year Ended May 31, 2026
 
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations
$25,333,806
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash
provided by operating activities:
Purchases of investments
(681,417,965
)
Sales, maturities and paydown of investments
725,208,793
Net amortization/accretion of premiums/discounts on investments
(2,312,042
)
Net realized gain/loss on investments
1,275,365
Net change in unrealized appreciation/depreciation on investments and unfunded loan
commitments
5,157,561
Changes in assets and liabilities:
Increase in interest receivable
(97,975
)
Increase in reclaims receivable
(16,073
)
Decrease in prepaid expenses
281
Decrease in interest and fees payable on loan
(139,041
)
Decrease in investment advisory fees payable
(47,612
)
Increase in audit and tax fees payable
835
Increase in legal fees payable
972
Increase in shareholder reporting fees payable
1,303
Decrease in administrative fees payable
(6,751
)
Increase in custodian fees payable
794
Increase in transfer agent fees payable
1,767
Increase in trustees’ fees and expenses payable
1,306
Increase in financial reporting fees payable
62
Increase in other liabilities payable
2,198
Cash provided by operating activities
$72,947,584
Cash flows from financing activities:
Distributions to Common Shareholders from investment operations
(32,928,527
)
Distributions to Common Shareholders from return of capital
(22,230,956
)
Repayment of borrowing
(280,000,000
)
Proceeds from borrowing
262,000,000
Cash used in financing activities
(73,159,483
)
Decrease in cash
(211,899
)
Cash at beginning of period
211,899
Cash at end of period
$—
Supplemental disclosure of cash flow information:
Cash paid during the period for interest and fees
$8,779,622
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
 
 
Year Ended May 31,
2026
2025
2024
2023
2022
Net asset value, beginning of period
$ 15.02
$ 15.31
$ 15.40
$ 17.48
$ 21.13
Income from investment operations:
Net investment income (loss)
0.86
 (a)
0.87
 (a)
0.88
 (a)
0.92
1.16
Net realized and unrealized gain (loss)
(0.17
)
0.37
0.59
(1.46
)
(3.14
)
Total from investment operations
0.69
1.24
1.47
(0.54
)
(1.98
)
Distributions paid to shareholders from:
Net investment income
(0.90
)
(0.89
)
(0.91
)
(0.97
)
(1.29
)
Net realized gain
—
—
—
—
(0.38
)
Return of capital
(0.60
)
(0.64
)
(0.65
)
(0.57
)
—
Total distributions paid to Common Shareholders
(1.50
)
(1.53
)
(1.56
)
(1.54
)
(1.67
)
Net asset value, end of period
$14.21
$15.02
$15.31
$15.40
$17.48
Market value, end of period
$13.83
$14.39
$14.10
$13.52
$16.07
Total return based on net asset value (b)
5.10
%
8.84
%
11.27
%
(1.86
)%
(9.73
)%
Total return based on market value (b)
6.77
%
13.22
%
16.72
%
(6.27
)%
(11.70
)%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000’s)
$ 522,667
$ 552,492
$ 563,093
$ 566,399
$ 642,783
Ratio of total expenses to average net assets
3.50
%
3.26
%
3.34
%
3.05
%
2.41
%
Ratio of total expenses to average net assets excluding
interest expense
1.90
%
1.80
%
1.82
%
1.86
%
2.02
%
Ratio of net investment income (loss) to average net assets
5.86
%
5.72
%
5.69
%
5.75
%
5.81
%
Portfolio turnover rate
67
%
63
%
52
%
35
%
39
%
Indebtedness:
Total loan outstanding (in 000’s)
$ 139,000
$ 157,000
$ 131,000
$ 123,000
$ 278,000
Asset coverage per $1,000 of indebtedness (c)
$ 4,760
$ 4,519
$ 5,298
$ 5,605
$ 3,312
 
(a)
Based on average shares outstanding.
(b)
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.
(c)
Calculated by subtracting the Fund’s total liabilities (not including the loan outstanding) from the Fund’s total assets, and dividing
by the outstanding loan balance in 000’s.
See Notes to Financial Statements
Page 22
Notes to Financial Statements
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026
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.
The Fund intends to liquidate and distribute substantially all of its net assets to shareholders on or about August 1, 2027 (the “Termination Date”). The Fund is not a so called “target date” or “life cycle” fund whose asset allocation becomes more conservative over time as its target date, often associated with retirement, approaches. In addition, the Fund is not a “target term” fund whose investment objective is to return its original NAV on the Termination Date.
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
 
(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)
May 31, 2026
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;
 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
Page 24
Notes to Financial Statements (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026
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;
 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)
a review 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 May 31, 2026, 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 May 31, 2026, the Fund held $341,759 of when-issued or delayed-delivery securities. At May 31, 2026, the Fund had no forward purchase commitments (other than the unfunded commitments discussed below).
Consent fees, upfront origination fees, and amendment fees from Senior Loans, if any, are included in “Other” under Investment Income on the Statement of Operations.
Page 25
Notes to Financial Statements (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026
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. Unfunded loan commitments are categorized as Level 2 within the fair value hierarchy. 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 May 31, 2026, the Fund had the following unfunded loan commitment:  
Borrower
Principal
Value
Commitment
Amount
Value
Unrealized
Appreciation
(Depreciation)
CoreWeave Financing DDTL V, LLC, Term Loan
$ 683,046
$ 694,626
$ 698,264
$ 3,638
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 May 31, 2026, 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. Permanent differences incurred during the fiscal year ended May 31, 2026, resulting in book and tax accounting differences, have been reclassified at year end to reflect an increase in accumulated net investment income (loss) of $1,064,808 and a decrease in accumulated net realized gain (loss) of $1,064,808. Accumulated distributable earnings (loss) consists of accumulated net investment income (loss), accumulated net realized gain (loss) on investments, and unrealized appreciation (depreciation) on investments. Net assets were not affected by this reclassification.
The tax character of distributions paid by the Fund during the fiscal years ended May 31, 2026 and 2025, was as follows:  
Distributions paid from:
2026
2025
Ordinary income
$32,928,527
$32,764,110
Capital gains
—
—
Return of capital
22,230,956
23,314,698
Page 26
Notes to Financial Statements (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026
As of May 31, 2026, 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
(113,956,382
)
Net unrealized appreciation (depreciation)
(8,341,124
)
Total accumulated earnings (losses)
(122,297,506
)
Other
—
Paid-in capital
644,964,173
Total net assets
$522,666,667
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 2023, 2024, 2025, and 2026 remain open to federal and state audit. As of May 31, 2026, 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, 2026, for federal income tax purposes, the Fund had $113,956,382 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, 2026, the Fund had no net late year ordinary or capital losses.
As of May 31, 2026, 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)
$659,167,361
$5,984,801
$(14,329,563)
$(8,344,762)
G. Expenses
The Fund will pay all expenses directly related to its operations.
H. Segment Reporting
An operating segment is defined in FASB Accounting Standards Update 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures 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
Page 27
Notes to Financial Statements (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026
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 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, prior to January 1, 2026, allocated pro rata among each fund in the First Trust Fund Complex based on net assets, and effective January 1, 2026, allocated equally among each fund in the First Trust Complex. 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 fiscal year ended May 31, 2026, were $473,777,566 and $536,294,251, 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 fiscal year ended May 31, 2026, the average amount outstanding was $164,416,438 with a weighted average interest rate of 5.03%. As of May 31, 2026, the Fund had outstanding borrowings of $139,000,000, 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 fiscal year ended May 31, 2026 were 5.49% and 4.63%, respectively. The weighted average interest rate at May 31, 2026 was 4.67%. The interest and fees are included in “Interest and fees on loans” on the Statement of Operations.
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.
Page 28
Notes to Financial Statements (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026
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 was the following subsequent event:
Effective July 17, 2026, the Credit Agreement with The Toronto Dominion Bank, New York Branch, was amended to reduce the maximum commitment amount under the facility from $230,000,000 to $200,000,000 and to extend the maturity date.
Page 29
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Trustees of First Trust High Yield Opportunities 2027 Term Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of First Trust High Yield Opportunities 2027 Term Fund (the “Fund”), including the portfolio of investments, as of May 31, 2026, the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements and financial highlights”). In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of May 31, 2026, and the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of May 31, 2026, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche, LLP
Chicago, Illinois
July 23, 2026
We have served as the auditor of one or more First Trust investment companies since 2001.
Page 30
Additional Information
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026 (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 31
Additional Information (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026 (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.
Tax Information
Of the ordinary income (including short-term capital gain) distributions made by the Fund during the fiscal year ended May 31, 2026, none qualify for the corporate dividends received deduction available to corporate shareholders or as qualified dividend income.
Distributions paid to foreign shareholders during the Fund’s fiscal year ended May 31, 2026, that were properly designated by the Fund as “interest-related dividends” or “short-term capital gain dividends,” may not be subject to federal income tax provided that the income was earned directly by such foreign shareholders.
NYSE Certification Information
In accordance with Section 303A-12 of the New York Stock Exchange (“NYSE”) Listed Company Manual, the Fund’s President has certified to the NYSE that, as of September 5, 2025, he was not aware of any violation by the Fund of NYSE corporate governance listing standards. In addition, the Fund’s reports to the SEC on Form N-CSR contain certifications by the Fund’s principal executive officer and principal financial officer that relate to the Fund’s public disclosure in such reports and are required by Rule 30a-2 under the 1940 Act.
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.
Page 32
Investment Objective, Policies, Risks and Effects of Leverage
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026 (Unaudited)
Changes Occurring During the Prior Fiscal Year
The following information is a summary of certain changes during the most recent fiscal year ended May 31, 2026. This information may not reflect all of the changes that have occurred since you purchased shares of the Fund.
During the Fund’s most recent fiscal year, there were no material changes to the Fund’s investment objective or policies that have not been approved by shareholders or in the principal risk factors associated with an investment in the Fund.
Investment Objective
The Fund’s investment objective is to provide current income.
Principal Investment Policies
The Fund invests at least 80% of its Managed Assets (as defined below) in high yield debt securities of any maturity that are rated below investment grade (rated below “BBB-” by S&P Global Ratings (“S&P”) and Fitch Ratings, a part of the Fitch Group (“Fitch”), or below “Baa3” by Moody’s Investor Services, Inc. (“Moody’s”)) at the time of purchase or unrated securities determined by the Advisor to be of comparable quality.  Such securities include U.S and non-U.S. corporate debt obligations and senior, secured floating rate loans (“Senior Loans”). The Fund may consider an expected rating provided by a nationally recognized statistical rating organization (“NRSRO”) as if it were a final rating.
“Managed Assets” means the average daily gross asset value of the Fund (which includes assets attributable to the Fund’s preferred shares of beneficial interest (“Preferred Shares”), if any, and the principal amount of any borrowings or commercial paper or notes issued by the Fund), minus the sum of the Fund’s accrued and unpaid dividends on any outstanding Preferred Shares and accrued liabilities (other than the principal amount of any borrowings of money incurred or of commercial paper or notes issued by the Fund). 
Under normal market circumstances:
•
The Fund may invest up to 20% of its Managed Assets in (i) investment grade corporate debt obligations, (ii) U.S. and non-U.S. government debt securities, (iii) warrants and equity securities, including common stock and other equity securities acquired in connection with the restructuring of the debt of an issuer, the reorganization of a Senior Loan or as part of a package of securities acquired together with the Senior Loans of an issuer, and (iv) investment companies;
•
The Fund may invest no more than 20% of its Managed Assets in corporate debt obligations that, at the time of purchase using the highest available rating, either are rated “CCC+” or lower by S&P or Fitch, or “Caa1” or lower by Moody’s, or comparably rated by another NRSRO or, if unrated, determined by the Advisor to be of comparable quality;
•
The Fund may invest no more than 25% of its Managed Assets in any single industry in the corporate debt market; and
•
The Fund may not invest more than 5% of its Managed Assets in securities issued by a single issuer, other than securities issued by the U.S. government.
The Fund’s investments may include: (i) securities of issuers located in countries considered to be emerging markets, which may entail additional risks; and (ii) defaulted or distressed securities (i.e., securities of companies whose financial condition is troubled or uncertain and that may be involved in bankruptcy proceedings, reorganizations or financial restructurings).  The Fund may use certain credit derivatives to take on additional credit risk and obtain exposure to the high yield corporate debt market.  If used, these instruments will be considered to be an investment in high yield debt securities for the purposes of the Fund’s investment policy to invest, under normal market conditions, at least 80% of its Managed Assets in high yield debt securities that are rated below investment grade at the time of purchase or unrated securities determined by the Advisor to be of comparable quality.  The Fund primarily uses total return swaps and credit default swaps to gain such exposure to high yield debt securities as part of its investment strategy. The Fund also may use credit default swap indices (“CDX”) to take on additional credit risk and obtain exposure to the high yield debt market. The Fund may use CDX exposure in two ways: when the Fund is a buyer of CDX credit protection, it seeks to hedge its exposure to volatility in the high yield debt market; when the Fund is a seller of CDX credit protection, it seeks to gain exposure to the high yield debt market, similar to investing directly in a basket of high yield debt securities. The CDX investments in which the Fund will invest are cleared on an exchange. The Fund’s usage of total return swaps, credit default swaps and other derivative transactions other than for hedging purposes may not exceed 20% of the Fund’s Managed Assets, as measured by the total notional amount of such instruments.  The Fund may also enter into futures contracts and options on futures contracts, and may, but is not required to, use various other derivative transactions to seek to manage the risks of the Fund’s portfolio securities or for other purposes to the extent the Advisor determines that the use of such transactions is consistent with the Fund’s investment objective, policies and applicable regulatory requirements.
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Investment Objective, Policies, Risks and Effects of Leverage (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026 (Unaudited)
To the extent the Fund enters into derivatives transactions, it will do so pursuant to Rule 18f-4 under the 1940 Act. Rule 18f-4 requires the Fund to implement certain policies and procedures designed to manage its derivatives risks, dependent upon the Fund’s level of exposure to derivative instruments.
The Fund intends to liquidate and distribute substantially all of its net assets to shareholders on or about August 1, 2027 (the “Termination Date”).  The Fund is not a so called “target date” or “life cycle” fund whose asset allocation becomes more conservative over time as its target date, often associated with retirement, approaches.  In addition, the Fund is not a “target term” fund whose investment objective is to return its original NAV on the Termination Date.  The Fund’s investment objective and policies are not designed to seek to return to investors that purchased Common Shares in the initial offering their initial investment of $20.00 per Common Share on the Termination Date, and such investors and investors that purchased Common Shares after the completion of the initial offering may receive more or less than their original investment upon termination.
During temporary defensive periods and the period in which the Fund is approaching its Termination Date (i.e., the “wind-down” period during which the Fund may begin liquidating its portfolio in anticipation of the Termination Date, which period is expected to begin six months prior to the Termination Date), the Fund may deviate from its investment policies and objective.  During such periods, the Fund may invest up to 100% of its Managed Assets in cash or short-term investments, including high quality, short-term securities, or may invest in short- or intermediate-term U.S. Treasury securities.  There can be no assurance that such techniques will be successful, and during such periods, the Fund may not achieve its investment objective. 
The Fund currently uses (and may continue to use) leverage to seek to achieve its investment objective.  The Fund anticipates that, under normal market conditions, it will employ leverage through borrowings from banks or other financial institutions in the amount of approximately 30% of the Fund’s Managed Assets.  The costs associated with any issuance and use of leverage are borne by Common Shareholders.  The use of leverage is a speculative technique and investors should note that there are special risks and costs associated with the leveraging of the Common Shares.  There can be no assurance that a leveraging strategy will be successful during any period in which it is employed.  Under normal market conditions, the Fund seeks to limit its overall effective leverage (which represents the combination of economic leverage, which is when the Fund seeks the right to a return on a capital base that exceeds the investment which the Fund has contributed to the instrument seeking a return) and the Fund’s senior securities (as defined under the 1940 Act)) to 40% of its Managed Assets.
Fundamental Investment Policies
The Fund, as a fundamental policy, may not:
1) With respect to 75% of its total assets, purchase any securities if, as a result (i) more than 5% of the Fund’s total assets would then be invested in securities of any single issuer, or (ii) the Fund would hold more than 10% of the outstanding voting securities of any single issuer; provided, that Government securities (as defined in the 1940 Act), securities issued by other investment companies and cash items (including receivables) shall not be counted for purposes of this limitation;
2) Purchase or sell real estate or commodities except as permitted by (i) the 1940 Act and the rules and regulations thereunder, or other successor law governing the regulation of registered investment companies, or interpretations or modifications thereof by the SEC, SEC staff or other authority of competent jurisdiction, or (ii) exemptive or other relief or permission from the SEC, SEC staff or other authority of competent jurisdiction;
3) Borrow money except as permitted by (i) the 1940 Act and the rules and regulations thereunder, or other successor law governing the regulation of registered investment companies, or interpretations or modifications thereof by the SEC, SEC staff or other authority of competent jurisdiction, or (ii) exemptive or other relief or permission from the SEC, SEC staff or other authority of competent jurisdiction;
4) Issue senior securities except as permitted by (i) the 1940 Act and the rules and regulations thereunder, or other successor law governing the regulation of registered investment companies, or interpretations or modifications thereof by the SEC, SEC staff or other authority of competent jurisdiction, or (ii) exemptive or other relief or permission from the SEC, SEC staff or other authority of competent jurisdiction;
5) Underwrite the securities of other issuers except (a) to the extent that the Fund may be deemed to be an underwriter within the meaning of the Securities Act of 1933, as amended, in connection with the purchase and sale of portfolio securities; and (b) as permitted by (i) the 1940 Act and the rules and regulations thereunder, or other successor law governing the regulation of registered investment companies, or interpretations or modifications thereof by the SEC, SEC staff or other authority of competent jurisdiction, or (ii) exemptive or other relief or permission from the SEC, SEC staff or other authority of competent jurisdiction;
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Investment Objective, Policies, Risks and Effects of Leverage (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026 (Unaudited)
6) Make loans except as permitted by (i) the 1940 Act and the rules and regulations thereunder, or other successor law governing the regulation of registered investment companies, or interpretations or modifications thereof by the SEC, SEC staff or other authority of competent jurisdiction, or (ii) exemptive or other relief or permission from the SEC, SEC staff or other authority of competent jurisdiction; or
7) Purchase any security if as a result 25% or more of the Fund’s total assets (taken at current value) would be invested in securities of issuers in a single industry, except that such limitation shall not apply to obligations issued or guaranteed by the United States Government or by its agencies or instrumentalities.
Except as noted above, the foregoing fundamental investment policies cannot be changed without approval by holders of a “majority of the outstanding voting securities” of the Fund, as defined in the 1940 Act, which includes Common Shares and Preferred Shares, if any, voting together as a single class, and of the holders of the outstanding Preferred Shares, if any, voting as a single class.  Under the 1940 Act, a “majority of the outstanding voting securities” means (i) 67% or more of the Fund’s shares present at a meeting, if the holders of more than 50% of the Fund’s shares are present or represented by proxy, or (ii) more than 50% of the Fund’s shares, whichever is less.
The foregoing restrictions and limitations will apply only at the time of purchase of securities, and the percentage limitations will not be considered violated unless an excess or deficiency occurs or exists immediately after and as a result of an acquisition of securities, unless otherwise indicated.
 
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.
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Investment Objective, Policies, Risks and Effects of Leverage (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026 (Unaudited)
Any shortcomings or inefficiencies in credit rating agencies’ processes for determining credit ratings may adversely affect the credit 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 begun to lower 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 the United States, Israel, Iran, Hamas, Hezbollah 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, the United States and other nations. Such events may also disrupt global trade and supply chains, increase sanctions and other governmental actions, and contribute to volatility in oil and natural gas markets. 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
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Investment Objective, Policies, Risks and Effects of Leverage (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026 (Unaudited)
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.
 
Cyber Security Risk. The Fund is susceptible to operational, information security and related 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, any of which could result in a material adverse effect on the Fund or its shareholders. 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. Emerging threats like ransomware or zero-day exploits could also cause disruptions to Fund operations. In addition, cyber security breaches of the issuers of securities in which the Fund invests or the Fund’s third-party service providers, such as its administrator, transfer agent, custodian, or Sub-Advisor, as applicable, among many other third-party service providers, can also subject the Fund to many of the same risks associated with direct cyber security breaches. Further, errors, misconduct, or compromise of accounts of employees of the Fund or its third-party service providers can also create material cybersecurity risks. Although the Fund has established risk management systems designed to reduce the risks associated with cyber security, 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. Cyber security incidents may also trigger Fund obligations under data privacy laws, potentially increasing notification and compliance burdens. Artificial intelligence (“AI”) and machine learning technologies used by the Fund, the Advisor or third-party service providers may allow the unintended introduction of vulnerabilities into infrastructures and applications, which could exacerbate these risks or result in cyber incidents that implicate personal data. The Fund and its shareholders could be negatively impacted as a result of these cyber risks associated with AI technologies. Substantial costs may be incurred by the Fund in order to resolve or prevent cyber incidents in the future. Cyber security incidents affecting issuers in whose securities the Fund invests may also have a negative impact on the value of the securities of such issuers, and in turn, the value of the Fund.
 
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.
 
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Investment Objective, Policies, Risks and Effects of Leverage (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026 (Unaudited)
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. The economies and markets of European countries are often closely connected and interdependent, and 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 (the “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. Decreasing imports or exports, changes in governmental or EU regulations on trade, changes in the exchange rate of the euro, the default or threat of default by an EU member country on its sovereign debt and/or an economic recession in an EU member country may have significant adverse effects on the economies of EU member countries and the EU and Europe as a whole. Separately, the EU faces issues involving its membership, structure, procedures and policies. The exit of one or more member countries from the EU, such as the departure of the United Kingdom referred to as “Brexit”, could place the departing member’s currency and banking system under severe stress or even in jeopardy. An exit by other member countries will likely result in increased volatility, illiquidity and potentially lower economic growth in the affected markets, which may adversely affect the Fund’s investments.
 
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.
 
Industrials Companies Risk. The Fund may invest in industrials companies. The value of securities issued by industrials companies may be adversely affected by supply and demand related to their specific products or services and industrials sector products in general. The products of manufacturing companies may face obsolescence due to rapid technological developments and frequent new product introduction. World events and changes in government regulations, import controls, economic conditions and exchange rates may adversely affect the performance of companies in the industrials sector. Industrials companies may be adversely affected by liability for environmental damage and product liability claims. Industrials companies may also be adversely affected by changes or trends in commodity prices, which may be influenced by unpredictable factors. Industrials companies, particularly aerospace and defense companies, may also be adversely affected by government spending policies because companies in this sector tend to rely to a significant extent on government demand for their products and services.
 
Page 38
Investment Objective, Policies, Risks and Effects of Leverage (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026 (Unaudited)
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.
 
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.
 
Page 39
Investment Objective, Policies, Risks and Effects of Leverage (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026 (Unaudited)
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 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, among many others. Any delay or failure relating to engaging or maintaining such service providers may affect the Fund’s ability to meet its investment objectives. 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,
Page 40
Investment Objective, Policies, Risks and Effects of Leverage (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026 (Unaudited)
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 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
Effects of Leverage
The aggregate principal amount of borrowings under the credit agreement (the “Credit Agreement”) with The Toronto-Dominion Bank, New York Branch represented approximately 21.01% of Managed Assets as of May 31, 2026. Asset coverage with respect to the borrowings under the Credit Agreement was 476.02% as of May 31, 2026 and the Fund had $91,000,000 of unutilized funds available for borrowing under the Credit Agreement as of that date. As of May 31, 2026, the maximum commitment amount under the Credit
Page 41
Investment Objective, Policies, Risks and Effects of Leverage (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026 (Unaudited)
Agreement was $230,000,000. As of May 31, 2026, the approximate average annual interest and fee rate for the borrowings under the Credit Agreement was 4.90%.
Assuming that the Fund’s leverage costs remain as described above (at an assumed average annual cost of 4.90%), the annual return that the Fund’s portfolio must experience (net of expenses) in order to cover its leverage costs would be 1.03%.
The following table is furnished in response to requirements of the SEC. It is designed to illustrate the effect of leverage on Common Share total return, assuming investment portfolio total returns (comprised of income and changes in the value of securities held in the Fund’s portfolio) of (10)%, (5)%, 0%, 5% and 10%. These assumed investment portfolio returns are hypothetical figures and are not necessarily indicative of the investment portfolio returns experienced or expected to be experienced by the Fund.
 
The table further assumes leverage representing 21.01% of the Fund’s Managed Assets, net of expenses, and an annual leverage interest and fee rate of 4.90%. 
 
Assumed Portfolio Total Return (Net of Expenses)
-10
%
-5
%
0
%
5
%
10
%
Common Share Total Return
-13.96
%
-7.63
%
-1.30
%
5.03
%
11.36
%
 
Common Share total return is composed of two elements: the Common Share dividends paid by the Fund (the amount of which is largely determined by the net investment income of the Fund after paying dividends or interest on its leverage) and gains or losses on the value of the securities the Fund owns. As required by SEC rules, the table above assumes that the Fund is more likely to suffer capital losses than to enjoy capital appreciation. For example, to assume a total return of 0% the Fund must assume that the distributions it receives on its investments are entirely offset by losses in the value of those securities.
 
Page 42
Board of Trustees and Officers
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026 (Unaudited)
The following tables identify the Trustees and Officers of the Fund. Unless otherwise indicated, the address of all persons is 120 East Liberty Drive, Suite 400, Wheaton, IL 60187.
  
Name, Year of Birth and
Position with the Fund
Term of Office
and Year First
Elected or
Appointed(1)
Principal Occupations
During Past 5 Years
Number of
Portfolios in
the First Trust
Fund Complex
Overseen by
Trustee
Other Trusteeships or
Directorships Held by
Trustee During Past 5 Years
INDEPENDENT TRUSTEES
Thomas J. Driscoll, Trustee
(1961)
• Two Year
Term
 
• Since 2025
Retired; Partner, Deloitte LLP and
Deloitte Tax LLP (1998 to January
2024)
328
None
Richard E. Erickson, Trustee
(1951)
• Three Year
Term
 
• Since Fund
Inception
Retired; Physician, Edward-Elmhurst
Medical Group (2021 to September
2023); Physician and Officer,
Wheaton Orthopedics (1990 to 2021)
328
None
Thomas R. Kadlec, Trustee
(1957)
• Three Year
Term
 
• Since Fund
Inception
Retired; President, ADM Investor
Services, Inc. (Futures Commission
Merchant) (2010 to July 2022)
328
Director, National Futures
Association; Formerly,
Director of ADM Investor
Services, Inc., ADM Investor
Services International,
ADMIS Hong Kong Ltd.,
ADMIS Singapore, Ltd., and
Futures Industry Association
Denise M. Keefe, Trustee
(1964)
• Three Year
Term
 
• Since 2021
Senior Vice President, Advocate
Health, Continuing Health Division
(Integrated Healthcare System) (2023
to present); Executive Vice President,
Advocate Aurora Health (Integrated
Healthcare System) (2018 to 2023)
328
Director and Board Chair of
Advocate Home Health
Services, Advocate Home
Care Products and Advocate
Hospice; Director and Board
Chair of Aurora At Home
(since 2018); Director of
Advocate Physician Partners
Accountable Care
Organization; Director of
RML Long Term Acute Care
Hospitals; Director of Senior
Helpers (2021 to 2024); and
Director of MobileHelp
(2022 to 2024)
Robert F. Keith, Trustee
(1956)
• Three Year
Term
 
• Since Fund
Inception
President, Hibs Enterprises (Financial
and Management Consulting)
328
Formerly, Director of Trust
Company of Illinois
Niel B. Nielson, Trustee
(1954)
• Three Year
Term
 
• Since Fund
Inception
Senior Advisor (2018 to Present),
Managing Director and Chief
Operating Officer (2015 to 2018),
Pelita Harapan Educational
Foundation (Educational Products and
Services)
328
None
 
(1)
Currently, Richard E. Erickson and Thomas R. Kadlec, as Class I Trustees, are serving as trustees until the Fund’s 2026 annual meeting of shareholders. Thomas J. Driscoll, Denise M. Keefe, and Niel B. Nielson, as Class II Trustees, are serving as trustees until the Fund’s 2027 annual meeting of shareholders. James A. Bowen, Robert F. Keith, and Bronwyn Wright, as Class III Trustees, are serving as trustees until the Fund’s 2028 annual meeting of shareholders.
Page 43
Board of Trustees and Officers (Continued)
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026 (Unaudited)
Name, Year of Birth and
Position with the Fund
Term of Office
and Year First
Elected or
Appointed(1)
Principal Occupations
During Past 5 Years
Number of
Portfolios in
the First Trust
Fund Complex
Overseen by
Trustee
Other Trusteeships or
Directorships Held by
Trustee During Past 5 Years
INDEPENDENT TRUSTEES
Bronwyn Wright, Trustee
(1971)
• Three Year
Term
 
• Since 2023
Independent Director to a number of
Irish collective investment funds
(2009 to Present); Various roles at
international affiliates of Citibank
(1994 to 2009), including Managing
Director, Citibank Europe plc and
Head of Securities and Fund Services,
Citi Ireland (2007 to 2009)
328
None
INTERESTED TRUSTEE
James A. Bowen(2), Trustee and
Chairman of the Board
(1955)
• Three Year
Term
 
• Since Fund
Inception
Chief Executive Officer, First Trust
Advisors L.P. and First Trust
Portfolios L.P.; Chairman of the
Board of Directors, BondWave LLC
(Software Development Company)
and Stonebridge Advisors LLC
(Investment Advisor)
328
None
 
Name and Year of Birth
Position and Offices
with Fund
Term of Office
and Length of
Service
Principal Occupations
During Past 5 Years
OFFICERS(3)
James M. Dykas
(1966)
President and Chief
Executive Officer
• Indefinite Term
 
• Since Fund
Inception
Managing Director and Chief Financial Officer, First Trust
Advisors L.P. and First Trust Portfolios L.P.; Chief Financial
Officer, Stonebridge Advisors LLC (Investment Advisor)
Derek D. Maltbie
(1972)
Treasurer, Chief Financial
Officer and Chief
Accounting Officer
• Indefinite Term
 
• Since 2023
Senior Vice President, First Trust Advisors L.P. and First Trust
Portfolios L.P., July 2021 to Present. Previously, Vice President,
First Trust Advisors L.P. and First Trust Portfolios L.P., 2014 to
2021.
W. Scott Jardine
(1960)
Secretary and Chief Legal
Officer
• Indefinite Term
 
• Since Fund
Inception
General Counsel, First Trust Advisors L.P. and First Trust
Portfolios L.P.; Secretary, Stonebridge Advisors LLC
Daniel J. Lindquist
(1970)
Vice President
• Indefinite Term
 
• Since Fund
Inception
Managing Director, First Trust Advisors L.P. and First Trust
Portfolios L.P.
Kristi A. Maher
(1966)
Chief Compliance Officer
and Assistant Secretary
• Indefinite Term
 
• Since Fund
Inception
International General Counsel, First Trust Advisors L.P. and First
Trust Portfolios L.P.
 
(2)
Mr. Bowen is deemed an “interested person” of the Fund due to his position as CEO of First Trust Advisors L.P., investment advisor of the Fund.
(3)
The term “officer” means the president, vice president, secretary, treasurer, controller or any other officer who performs a policy making function.
Page 44
Privacy Policy
First Trust High Yield Opportunities 2027 Term Fund (FTHY)
May 31, 2026 (Unaudited)
FIRST TRUST FUNDS PRIVACY POLICY
The First Trust Funds value their relationship with you and consider your privacy a priority in maintaining that relationship. We are committed to protecting the security and confidentiality of your personal information while providing you with the products/services you request or authorize.
SOURCES OF INFORMATION
We collect nonpublic personal information (NPPI) about you through our transfer agents that collect, use and maintain the information needed to administer your account with us. The NPPI is received by the transfer agent from your broker-dealer, investment professional or financial representative on your behalf through applications or other documentation you provide to establish your account with us.
We also collect information when you visit our website through the use of “cookies.” For example, we may identify the pages on our website that your browser requests or visits.
INFORMATION COLLECTED
The type of NPPI we collect through our transfer agent may include your name, address, social security number, date of birth and other NPPI necessary for the transfer agent to administer your account and verify your identity under federal law.
DISCLOSURE OF INFORMATION
We do not disclose, and do not authorize our transfer agents to disclose, NPPI about our consumers, customers or former customers to anyone, except as permitted by law. In addition to using this information to administer your account and verify your identity through our transfer agents, the permitted uses may also include the disclosure of NPPI to other unaffiliated third-parties for the following reasons:
•
to assist us in the distribution of First Trust Fund materials such as trustees, banks, investment advisor or broker-dealer representatives, proxy services, solicitors and printers;
•
if you direct us to do so.
•
when required by law or in other legally limited circumstances, such as to protect your account from fraud.
PROTECTION OF NPPI COLLECTED
The First Trust Funds engage trusted transfer agents who are subject to the Regulation S-P data protection requirements and must protect your NPPI from unauthorized access and use through security measures that comply with federal law.  The First Trust Funds take reasonable measures to review and monitor transfer agent compliance with these requirements and transfer agent cybersecurity and breach risk through third party software and other safeguards.
USE OF WEBSITE ANALYTICS
We currently use third party analytics tools, Google Analytics and Matomo to gather information for purposes of improving our website and marketing our products and services to you. These tools employ cookies, which are small pieces of text stored in a file by your web browser and sent to websites that you visit, to collect information, track website usage and viewing trends such as the number of hits, pages visited, videos and PDFs viewed and the length of user sessions in order to evaluate website performance and enhance navigation of the website. We may also collect other anonymous information, which is generally limited to technical and web navigation information such as the IP address of your device, internet browser type and operating system for purposes of analyzing the data to make our website better and more useful to our users. The information collected does not include any NPPI unless you voluntarily provide that information through the website for us to contact you in order to answer your questions or respond to your requests. You should not provide NPPI on our website if you do not want your information to be used by these services. To find out how to opt-out of these services click on: Google Analytics and Matomo Analytics Platform.
We use reCAPTCHA on certain pages of our website to help protect against automated abuse, spam and fraudulent activity. reCAPTCHA works by collecting certain technical information from your browser, such as your IP address, cookies, browser type, device information, and interaction data, to determine whether a request is coming from a human user or an automated program. This information is processed by Google on our behalf solely for the purpose of security, fraud and abuse prevention, and is not used for advertising or any other related purpose.
CONFIDENTIALITY AND SECURITY
Certain employees of our investment advisor, First Trust Advisors L.P. and our distributor, First Trust Portfolios L.P. may have access to information about you but do not receive NPPI. The information accessed is protected using physical, electronic and procedural safeguards.
POLICY UPDATES AND INQUIRIES
As required by federal law, we will notify you of our privacy policy annually. We reserve the right to modify this policy at any time, however, if we do change it, we will tell you promptly.
April 2026
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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