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    SEC Form N-CSRS filed by KKR Income Opportunities Fund

    6/25/25 2:44:10 PM ET
    $KIO
    Investment Managers
    Finance
    Get the next $KIO alert in real time by email
    ck0001515940-20250430
    0001515940falseN-2N-CSRSiso4217:USD00015159402024-11-012025-04-300001515940ck0001515940:GlobalEconomicAndMarketConditionsRiskMember2024-11-012025-04-300001515940ck0001515940:MarketDiscountRiskMember2024-11-012025-04-300001515940ck0001515940:LeverageRiskMember2024-11-012025-04-300001515940ck0001515940:MarketRiskMember2024-11-012025-04-300001515940us-gaap:InterestRateRiskMember2024-11-012025-04-300001515940us-gaap:CreditRiskContractMember2024-11-012025-04-300001515940ck0001515940:LiquidityRiskMember2024-11-012025-04-300001515940ck0001515940:PrepaymentAndExtensionRiskMember2024-11-012025-04-300001515940ck0001515940:HighYieldRiskMember2024-11-012025-04-300001515940ck0001515940:ForeignInvestmentRiskMember2024-11-012025-04-300001515940ck0001515940:IssuerRiskMember2024-11-012025-04-300001515940ck0001515940:StateStreetCreditFacilityMember2024-11-012025-04-30

    UNITED STATES
    SECURITIES AND EXCHANGE COMMISSION
    Washington, D.C. 20549


    FORM N-CSR


    CERTIFIED SHAREHOLDER REPORT OF REGISTERED
    MANAGEMENT INVESTMENT COMPANIES
    Investment Company Act file number (811-22543)


    KKR Income Opportunities Fund
    (Exact name of registrant as specified in charter)


    555 California Street, 50th Floor
    San Francisco, CA 94104
    (Address of principal executive offices) (Zip code)


    Lori Hoffman
    KKR Credit Advisors (US) LLC
    555 California Street, 50th Floor
    San Francisco, CA 94104
    (Name and address of agent for service)


    (415) 315-3620
    Registrant’s telephone number, including area code



    Date of fiscal year end: October 31, 2025
    Date of reporting period: April 30, 2025




    Item 1. Reports to Stockholders.
    kkr-logo2.jpg
    KKR Income Opportunities Fund
    Semi-Annual Report
    April 30, 2025


    Logo1.jpg
     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Table of Contents
    Management’s Discussion of Fund Performance
    1
    Schedule of Investments
    4
    Statement of Assets and Liabilities
    18
    Statement of Operations
    19
    Statements of Changes in Net Assets
    20
    Statement of Cash Flows
    21
    Financial Highlights
    22
    Notes to Financial Statements
    23
    Voting Results from the March 19, 2025 Shareholder Meeting
    33
    Privacy Notice
    34
    The KKR Income Opportunities Fund (the “Fund”) files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT within sixty days after the end of the period. The Fund’s Forms N-PORT are available on the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov or on request by calling 1-800-SEC-0330.
    A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities, as well as information relating to how a Fund voted proxies relating to portfolio securities during the 12-month period ended June 30 will be available (i) without charge, upon request, by calling 855-862-6092; and (ii) on the Commission’s website at www.sec.gov.
    INFORMATION ABOUT THE FUND’S TRUSTEES
    The proxy statements and annual reports include information about the Fund’s Trustees and are available without charge, upon request, by calling 855-862-6092 and by visiting the Commission’s website at www.sec.gov or the Fund’s website at www.kkrfunds.com/kio.


    Logo1.jpg
     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Management’s Discussion of Fund Performance

    Looking Back on the Markets – April 30, 2025

    While market sentiment remained optimistic heading into 2025, volatility was brewing under the surface. Rising geopolitical tensions, expanding fiscal deficits, sustained inflationary pressures, and looming tariffs hinted at a potentially more complex environment ahead, even as broad market consensus leaned toward a surge of animal spirits carrying markets higher. What few investors anticipated was just how disruptive one of those undercurrents — in particular tariffs — would become. As the final days of the first quarter approached, the market’s tone shifted. Issuance slowed, deals began to stall, and attention turned to the anticipated reveal of “Liberation Day.” At the same time, we continued to grapple with the zealous yearn for yield, compressed spreads, and a persistent lack of supply. The deepening bifurcation between high-quality and storied credits was becoming harder to ignore.

    Throughout the second half of 2024, we highlighted what we called a “non-obvious” market with dispersion quietly taking hold beneath the surface. Some of this reflected the reality of ensuing rolling recessions, where different sectors, for example consumer goods or media, faced pressure at different times, creating an uneven but growing gap between the haves and have-nots. High-quality BBs were tightening toward historical tights, while CCC-rated credits began to drift wider, largely under the radar. Separately, we would be remiss not to acknowledge the exuberance across equity markets. Equity valuations were elevated, and the S&P 500 was trading around 22x forward earnings by Q1’25, which is considered expensive by historical standards. Against that backdrop, a market shakeup was not inconceivable — it could be argued it was overdue.

    Then came the twist: headlines turned to tariffs — specifically those on China — directly impacting widely used consumer goods. The pressure that had been building in the markets found its release in rates. The 10-year U.S. Treasury yield surged toward its biggest five-day increase since 1982, followed closely by a sharp sell-off in the 30-year. Yields spiked, liquidity thinned, and what began as scattered signals became something closer to flashing warning lights.

    As we reflect on the first four months of 2025, the moment carries a sense of déjà vu — a slight echo of March 2020. However, the difference this time is in the catalyst, structure, and response. Markets were truly shocked during the COVID-19 pandemic. The entire world froze with little line of sight to a resolution, a shock that impacted all. Today’s volatility is not the same. This is a policy-induced reaction, and while the mark-to-market volatility has been acute, including 10% intra-day swings not seen since the Great Financial Crisis (“GFC”), the structural backdrop is different. We have muscle memory and a playbook for this, and while risks remain, there is clarity regarding what needs to happen next. We are not navigating a global shutdown, we are adjusting to a global risk recalibration. Nothing is linear on the way down. As such, we are positioning thoughtfully to reflect on the recalibrated risk environment.

    Traded Credit Markets

    This year began on a familiar note: investor confidence was back, inflation was easing, rate cuts were expected, persistent supply-demand imbalances continued to underpin technical strength, and credit markets were seemingly ready to run. However, the narrative started to shift. Beneath the surface of strong equity performance and robust gross loan volume of $477 billion[1] globally in Q1, the foundation began to shift. Loan volumes were supported in part by a three-year high in M&A; however, M&A was still relatively low, especially compared to post-election expectations. In the U.S., repricings continued to dominate, accounting for over 50% of activity, alongside nearly 20% from refinancings. Europe posted its strongest start to the year since the GFC. Globally, new-money loan issuance (excluding repricings and refinancings) totaled $230 billion,[1] marking the fastest start to a year since 2021.

    CLO issuance also opened with momentum, extending the pace set in 2024. Q1 global volume came in at $66.8 billion[2] across 135 deals pushing AAA spreads to the tightest levels of the CLO 2.0 era (110-115bps). Yet the strength at the surface masked growing underlying fatigue. As we highlighted throughout 2024, the technical backdrop was already stretched, and by late Q1, new issue AAA spreads widened meaningfully, moving from the tights to effectively no-bid for several weeks before settling in the +130–135bps context, which is still tight on a relative basis. Secondary trades widened even more, and for the first time since early 2022, we observed a persistent disconnect between primary and secondary AAAs, a divergence that, as a rule, rarely lasts.

    ______________________________
    (1) Pitchbook | LCD, JPMorgan Research and KKR Credit Analysis as of March 31, 2025
    (2) Pitchbook | LCD and KKR Credit Analysis as of March 31, 2025

    1

    Logo1.jpg
     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    As investor sentiment faded and growth expectations cooled, the markets reminded everyone how quickly the tone can change. By March, U.S. loan volume had dropped to just $47.7 billion[3] the second-lowest monthly total in 15 months. The repricing engine stalled, investor demand softened, and volatility returned. Several deals were sidelined or forced to flex wider to cross the finish line. Leveraged loans still managed to post modest Q1 gains with the U.S. returning +0.48% and Europe +0.99%[4] as of March 31, 2025. However, those gains began to retreat as the post-Liberation Day equity sell-off took hold. The immediate flight to quality, combined with gapping bid prices in single B and CCC names, dragged the loan market into negative territory and reignited growing dispersion.

    High yield bonds also posted a gain in Q1 (+0.95%), supported by falling treasury yields, but with a clear delineation between higher and lower quality cohorts[5]. BB rated bonds finished Q1 up +1.45% while CCC rated bonds fell -0.67%. High yield was then effectively flat in April with year to date gains remaining at +0.95% as the BB cohort posted a modest gain of +0.17% while the CCC cohort lost another -0.62% on the month. Year to date gains[6] for U.S. leveraged loans finished April at +1.05%, lagging European loans slightly which are up +1.16% on the year.

    Against this volatile backdrop, one dynamic continues to stand out: carry remains a key stabilizer, especially during more uncertain times, by muting mark-to-market losses and reinforcing credit’s resilience relative to public equities. It also validates a theme we have remained focused on over the past several quarters: the enduring power of compounding income. In an environment where price action can be volatile and uneven, consistent, stable income remains a critical anchor.

    Fund Description & Performance

    KKR Income Opportunities Fund (“KIO” or, the “Fund”) is a diversified, closed-end fund that trades on the New York Stock Exchange under the symbol “KIO.” The Fund’s primary investment objective is to seek a high level of current income with a secondary objective of capital appreciation. The Fund seeks to achieve its investment objectives by employing a dynamic strategy of investing in a targeted portfolio of loans and fixed-income instruments (including derivatives) of US and non-US issuers and implementing hedging strategies in order to seek to achieve attractive risk-adjusted returns. Under normal market conditions, KIO will invest at least 80% of its Managed Assets in loans and fixed-income instruments or other instruments, including derivative instruments, with similar economic characteristics. The Fund expects to invest primarily in first and second lien secured loans, unsecured loans and high-yield corporate debt instruments of varying maturities.

    Trailing Fund returns have lagged somewhat as market volatility has risen and the Fund has gone from trading at a premium to trading at a discount to net asset value (“NAV”) during the six months ended April 30, 2025. In market terms, KIO generated total return, inclusive of dividends, of -10.03% return during the six months ended April 30, 2025. On a NAV basis, the strategy has delivered total returns, net of fees and inclusive of dividends, of -2.51% during the six months ended April 30, 2025. Over the last 6 months, KIO has gone from trading at a premium to “NAV” of 2.57%, to a discount of -5.50% as of April 30, 2025[7].

    Diving deeper into NAV performance drivers, positions within the technology & electronics, telecommunications, and services sectors were the top contributors year to date as of April 30, 2025. On an asset class basis, exposures to bank loans and high yield bonds have driven similarly positive performance contributions, followed by structured credit while convertible bonds have detracted. From a rating perspective, performance was led by CC & below rated assets followed by BBB-rated, B-rated, and BB-rated, while CCC-rated and not rated assets have detracted year to date.

    As of April 30, 2025, the Fund’s portfolio is comprised of the following:

    Investments in securities
    Level 1
    Level 2
    Level 3
    Total
    Leveraged Loans
    — %43.22 %3.25 %46.47 %
    High Yield Securities
    — %35.95 %— %35.95 %
    Asset Backed Securities— %— %9.13 %9.13 %
    Equity and Other Investments0.21 %— %1.32 %1.53 %
    Money Market Fund
    6.92 %— %— %6.92 %
    Total investments in securities
    7.13 %79.17 %13.70 %100.00 %
    ______________________________
    (3) Pitchbook | LCD and KKR Credit Analysis as of March 31, 2025
    (4) Morningstar LSTA LL Index as of March 31, 2025
    (5) ICE BofA HY Index as of March 31, 2025
    (6) Morningstar LSTA LL Index as of April 30, 2025
    (7) Source: Performance data from U.S. Bank as of April 30, 2025
    2

    Logo1.jpg
     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Business Updates

    On February 7, 2025, the Fund completed its acquisition of the assets and certain liabilities of Insight Select Income Fund (“INSI”) at net asset value in exchange for consideration consisting of shares of the Fund and cash (the “transaction”). Following the closing of the transaction, shares of KIO and cash consideration were distributed to shareholders of INSI. The transaction was structured as a tax-free reorganization. In connection with the transaction, the Adviser agreed to waive a portion of its management fee from 1.10% to 0.99% of the average daily value of the Fund’s Managed Assets (as defined in the prospectus) for the 12-month period following the closing of the transaction. Shareholders of the Fund approved the issuance of additional common shares of beneficial interest of the Fund in connection with the transaction.

    We thank you for your partnership and continued investment in KIO. We look forward to continued communications and will keep you apprised of the progress of KIO specifically and the leveraged finance marketplace generally. Fund information is available on our website at kkrfunds.com/kio.

    Disclosures

    The Bank of America Merrill Lynch High Yield Master II Index is a market-value weighted index of below investment grade US dollar-denominated corporate bonds publicly issued in the US domestic market. “Yankee” bonds (debt of foreign issuers issued in the US domestic market) are included in the Bank of America Merrill Lynch High Yield Master II Index provided that the issuer is domiciled in a country having investment grade foreign currency long-term debt rating. Qualifying bonds must have maturities of one year or more, a fixed coupon schedule and minimum outstanding of US$100.0 million. In addition, issues having a credit rating lower than BBB3, but not in default, are also included.

    The Morningstar LSTA US Leveraged Loan Index is a market value-weighted index designed to measure the performance of the US leveraged loan market based upon market weightings, spreads and interest payments. The index was rolled out in 2000 and it was back-loaded with four years of data dating to 1997. It is not possible to invest directly in an index.

    Past performance is not an indication of future results. Returns represent past performance and reflect changes in share prices, the reinvestment of all dividends and capital gains, expense limitations and the effects of compounding. The prospectus contains more complete information on the investment objectives, risks, charges and expenses of the investment company, which investors should read and consider carefully before investing. The returns shown do not reflect taxes a shareholder would pay on distributions or redemptions. Total investment return and principal value of your investment will fluctuate, and your shares, when sold, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. An investment in the Fund involves risk, including the risk of loss of principal. For a discussion of the Fund’s risks, see Risk Considerations, Note 3 to the financial statements. Call 855-330-3927 or visit www.kkrfunds.com/kio for performance results current to the most recent calendar quarter-end.

    Must be preceded or accompanied by a prospectus.

    An imbalance in supply and demand in the income market may result in valuation uncertainties and greater volatility, less liquidity, widening credit spreads and a lack of price transparency in the market. Investments in income securities may be affected by changes in the creditworthiness of the issuer and are subject to the risk of non–payment of principal and interest. The value of income securities also may decline because of real or perceived concerns about the issuer’s ability to make principal and interest payments. Borrowing to increase investments (leverage) will exaggerate the effect of any increase or decrease in the value of Fund investments. Investments rated below investment grade (typically referred to as “junk”) are generally subject to greater price volatility and illiquidity than higher rated investments. As interest rates rise, the value of certain income investments is likely to decline. Senior loans are subject to prepayment risk. Investments in foreign instruments or currencies can involve greater risk and volatility than US investments because of adverse market economic, political, regulatory, geopolitical or other conditions. Changes in the value of investments entered for hedging purposes may not match those of the position being hedged. The Fund may engage in other investment practices that may involve additional risks.

    3

    Logo1.jpg
     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Schedule of Investments
    (in thousands, except share data)
    Issuer Asset Reference Rate & SpreadMaturity DateCurrencyParFair ValueFootnotes
    Leveraged Loans - 70.36%
        Aerospace & Defense - 0.13%
            Vertex Aerospace Services LLCTL 1L B 12/21SOFR + 2.25% 12/6/2030USD671 $663 
        Alternative Carriers - 2.81%
            Level 3 Financing IncTL 1L B 03/25SOFR + 4.25% 3/27/2032USD5,536 5,532 
            Lumen Technologies IncTL 1L B2 03/24SOFR + 2.35% 4/15/2030USD3,313 3,165 
            Zayo Group LLCTL 1L B 03/20SOFR + 3.00% 3/9/2027USD6,116 5,707 (a)
        Application Software - 6.89%
            Cision LtdTL 1L 04/25 (New Money FLFO USD)1.00% PIK, SOFR + 5.00%4/29/2030USD1,390 1,386 
            Ellucian IncTL 2L 11/24SOFR + 4.75% 11/22/2032USD1,109 1,113 
            Envestnet IncTL 1L 09/24SOFR + 3.50% 11/25/2031USD4,557 4,549 
            Industrial & Financial Systems IFS ABTL 1L B1 03/21 EUREURIBOR + 3.15% 3/31/2028EUR1,187 1,341 
            Qlik Technologies IncTL 1L 11/24SOFR + 3.25% 10/26/2030USD1,251 1,248 
            Qualtrics International IncTL 1L B2 02/25SOFR + 2.25% 6/28/2030USD539 535 
            Solera LLCTL 2L 06/21SOFR + 9.00% 6/4/2029USD11,527 11,527 (b) (d)
            TIBCO Software IncTL 1L B1 11/24SOFR + 3.50% 3/29/2029USD10,082 9,975 
            TIBCO Software IncTL 1L B2 10/24SOFR + 3.75% 3/21/2031USD3,673 3,636 
        Automotive Parts & Equipment - 4.10%
            Belron Finance LtdTL 1L B 09/24SOFR + 2.75% 10/16/2031USD539 539 
            Innovative XCessories & Services LLCTL 1L 02/20SOFR + 4.25% 3/5/2027USD12,593 12,067 
            Parts Authority IncTL 1L 10/20SOFR + 3.75% 10/28/2027USD10,733 8,382 (a)
        Broadcasting - 2.62%
            NEP Broadcasting LLCTL 1L B 12/23 (2019 A&E EUR)1.50% PIK, EURIBOR + 3.50%8/19/2026EUR8,273 8,238 (d)
            NEP Broadcasting LLCTL 1L B 12/23 (2019 A&E)1.50% PIK, SOFR + 3.25%8/19/2026USD485 438 (d)
            NEP Broadcasting LLCTL 2L 09/18SOFR + 7.00% 10/19/2026USD7,495 4,747 
        Broadline Retail - 0.42%
            AutoScout24 GmbHTL 1L B 10/24 EUREURIBOR + 3.75% 12/10/2031EUR1,894 2,147 
        Building Products - 3.25%
            DiversiTech Holdings IncTL 1L B 12/21SOFR + 3.50% 12/22/2028USD1,894 1,891 
            DiversiTech Holdings IncTL 2L B 12/21SOFR + 6.75% 12/21/2029USD1,381 1,373 
            Foundation Building Materials LLCTL 1L B3 04/25SOFR + 5.25% 1/29/2031USD1,651 1,537 
            Hunter Douglas IncTL 1L B1 01/25SOFR + 3.25% 1/17/2032USD4,050 3,960 
            MI Windows and Doors IncTL 1L B2 03/24SOFR + 3.00% 3/28/2031USD3,994 3,940 
            Quikrete Holdings, Inc.TL 1L B3 01/25SOFR + 2.25% 2/10/2032USD4,040 3,966 
    See accompanying notes to financial statements.
    4

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Issuer Asset Reference Rate & SpreadMaturity DateCurrencyParFair ValueFootnotes
        Cable & Satellite - 1.45%
            Astound Broadband (RCN/Radiate)TL 1L B 10/21SOFR + 3.25% 9/25/2026USD7,369 $6,497 (a)
            Virgin Media IncTL 1L 09/19SOFR + 2.50% 1/31/2028USD947 936 
        Casinos & Gaming - 0.08%
            Entain PLCTL 1L B 04/24SOFR + 2.75% 10/31/2029USD388 388 
        Commercial Printing - 1.41%
            Multi-Color CorpTL 1L B 10/21 EUREURIBOR + 5.00% 10/30/2028EUR7,788 7,249 
        Commodity Chemicals - 3.37%
            Ineos Quattro Holdings LtdTL 1L B 01/20 EUREURIBOR + 2.00% 1/29/2027EUR465 504 
            Plaskolite, LLCTL 1L 04/21SOFR + 4.00% 12/15/2025USD14,504 13,955 (a)
            SI Group IncTL 1L B-1A 09/240.75% PIK, SOFR + 4.75%10/16/2028USD1,761 866 (d)
            SI Group IncTL 1L B-1B 09/240.75% PIK, SOFR + 4.75%10/16/2028USD3,944 1,939 (d)
        Construction & Engineering - 0.80%
            Azuria Water Solutions IncTL 1L 01/25SOFR + 2.50% 5/17/2028USD3,962 3,936 
            Brand Energy & Infrastructure Services IncTL 1L B 04/24SOFR + 4.50% 8/1/2030USD197 183 
        Construction Machinery & Heavy Transportation Equipment - 1.07%
            Accuride CorpTL Unsec 03/253.00% PIK, SOFR + 1.5%3/7/2030USD2,287 5,494 (a) (b) (d)
        Construction Materials - 0.19%
            Quimper ABTL 1L B 11/24 EUREURIBOR + 3.75% 3/31/2030EUR857 972 
        Consumer Finance - 0.89%
            Edelman Financial Engines Center LLC/TheTL 1L B 12/24SOFR + 3.00% 4/7/2028USD4,557 4,546 
        Consumer Staples Merchandise Retail - 0.14%
            Morrisons (Market Bidco Limited)TL 1L 10/24 EUREURIBOR + 4.50% 11/4/2030EUR656 723 
        Data Processing & Outsourced Services - 1.23%
            West CorpTL 1L B3 01/23SOFR + 4.00% 4/10/2027USD8,696 6,313 
        Diversified Chemicals - 0.29%
            Hexion International Cooperatief UATL 1L 12/24SOFR + 4.00% 3/15/2029USD1,540 1,503 
        Diversified Metals & Mining - 0.39%
            Foresight Energy LLCTL 1L A 06/20SOFR + 8.00% 6/30/2027USD2,111 2,022 (a) (b)
        Diversified Support Services - 0.18%
            Legence Holdings LLC (aka Therma)TL 1L 01/25SOFR + 3.25% 12/18/2028USD920 909 
        Education Services - 0.27%
            IU Finance Management GmbHTL 1L B 11/24 EUREURIBOR + 3.75% 12/8/2031EUR1,215 1,365 
        Environmental & Facilities Services - 2.31%
            Brock Group LLC/TheTL 1L B 04/24SOFR + 6.00% 5/2/2030USD7,915 7,833 
    See accompanying notes to financial statements.
    5

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Issuer Asset Reference Rate & SpreadMaturity DateCurrencyParFair ValueFootnotes
            Filtration Group CorpTL 1L B 01/25SOFR + 3.00% 10/21/2028USD4,004 $4,005 
        Financial Exchanges & Data - 0.11%
            IntraFi Network LLCTL 1L B 01/25SOFR + 3.50% 7/31/2031USD545 544 
        Health Care Equipment - 2.13%
            Drive DeVilbiss Healthcare LLCTL 1L 03/214.00% PIK, SOFR + 5.50%6/1/2026USD7,929 7,849 (a) (d)
            Drive DeVilbiss Healthcare LLCTL 1L 09/229.00% PIK, SOFR + 1.00%6/1/2026USD1,187 1,198 (a) (b) (d)
            Siemens Audiology SolutionsTL 1L B3 09/24EURIBOR + 4.00% 2/28/2029EUR759 859 
            Viant Medical Holdings IncTL 1L 10/24SOFR + 4.00% 10/29/2031USD996 997 
        Health Care Facilities - 0.65%
            Independent Vetcare LtdTL 1L 01/24EURIBOR + 4.00% 11/20/2028EUR759 854 
            LifePoint Hospitals IncTL 1L B 09/24SOFR + 3.75% 5/17/2031USD285 281 
            Mehilainen OyTL 1L 04/25 EUREURIBOR + 3.90% 8/5/2031EUR1,237 1,405 
            ScionHealthTL 1L B 12/21SOFR + 5.25% 12/23/2028USD1,690 787 (a)
        Health Care Services - 0.81%
            Affidea BVTL 1L B 01/25 (EUR)EURIBOR + 3.75% 7/2/2029EUR1,190 1,348 
            CHG Healthcare Services IncTL 1L B1 12/24SOFR + 3.00% 9/29/2028USD902 900 
            Inizio Group LtdTL 1L B 08/21 EUREURIBOR + 4.00% 8/19/2028EUR760 830 
            Paradigm Acquisition CorpTL 1L B 10/24SOFR + 3.25% 5/6/2031USD6 6 
            Sotera Health Holdings LLCTL 1L 05/24SOFR + 3.25% 5/30/2031USD544 544 
            Southern Veterinary Partners LLCTL 1L 10/24SOFR + 3.25% 12/4/2031USD542 541 
        Health Care Technology - 1.76%
            Ensemble RCM LLCTL 1L B 01/24SOFR + 3.00% 8/1/2029USD4,009 4,011 
            Milano Acquisition CorpTL 1L 08/20SOFR + 4.00% 10/1/2027USD4,815 4,492 
            Zelis Healthcare CorpTL 1L B 01/24SOFR + 2.75% 9/28/2029USD544 533 
        Hotels, Resorts & Cruise Lines - 0.39%
            Playa Resorts Holding BVTL 1L B 11/22SOFR + 2.75% 1/5/2029USD1,255 1,255 
            Travel + Leisure CoTL 1L B 12/24SOFR + 2.50% 12/14/2029USD760 748 
        Household Products - 0.78%
            Culligan International CoTL 1L B 12/24SOFR + 3.00% 7/31/2028USD4,044 4,003 
        Human Resource & Employment Services - 0.98%
            Sedgwick Claims Management Services IncTL 1L B 02/23SOFR + 3.00% 7/31/2031USD2,932 2,921 
            SIRVA Worldwide IncTL 1L 08/24SOFR + 8.00% 2/20/2029USD302 302 (a) (b)
            SIRVA Worldwide IncTL 1L 08/245.00% PIK, SOFR + 3.00%8/20/2029USD1,303 1,303 (a) (b) (d)
            SIRVA Worldwide IncTL 1L DD 08/24SOFR + 8.00% 2/20/2029USD749 474 (a) (b) (h)
        Industrial Machinery & Supplies & Components - 2.68%
            Alliance Laundry Systems LLCTL 1L B 08/24SOFR + 2.75% 8/19/2031USD4,029 4,006 
            CPM Holdings IncTL 1L 09/23SOFR + 4.50% 9/28/2028USD1,840 1,785 
    See accompanying notes to financial statements.
    6

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Issuer Asset Reference Rate & SpreadMaturity DateCurrencyParFair ValueFootnotes
            Dexko Global IncTL 1L 10/21 EUREURIBOR + 4.00% 10/4/2028EUR3,336 $3,483 
            Dexko Global IncTL 1L B 09/21SOFR + 3.75% 10/4/2028USD1,301 1,205 
            Dexko Global IncTL 1L B 09/21 (EUR)EURIBOR + 4.00% 10/4/2028EUR2,307 2,409 
            Engineered Machinery Holdings IncTL 2L 08/21SOFR + 6.00% 5/21/2029USD290 287 
            ProMach Group IncTL 1L B 02/25SOFR + 2.75% 8/31/2028USD540 537 
        Insurance Brokers - 0.85%
            Ardonagh Group Ltd/TheTL 1L 01/25 EUREURIBOR + 3.63% 2/18/2031EUR2,365 2,652 
            Howden Group Holdings LtdTL 1L 11/24 EUREURIBOR + 3.50% 2/15/2031EUR1,512 1,712 
        Interactive Media & Services - 1.93%
            Twitter IncTL 1L 02/259.50% 10/29/2029USD5,855 5,720 
            Twitter IncTL 1L B1 10/22SOFR + 6.50% 10/26/2029USD4,315 4,190 
        Internet Services & Infrastructure - 0.35%
            team.blue Finco SARLTL 1L 06/24 EUREURIBOR + 3.70% 9/30/2029EUR1,602 1,809 
        IT Consulting & Other Services - 1.97%
            Sabre IncTL 1L B1 06/21SOFR + 3.50% 12/17/2027USD2,017 1,927 
            Sabre IncTL 1L B1 11/24SOFR + 6.00% 11/15/2029USD6,235 5,897 
            Sabre IncTL 1L B2 06/21SOFR + 3.50% 12/17/2027USD2,341 2,237 
            Sabre IncTL 1L B2 11/24SOFR + 6.00% 11/15/2029USD29 27 
        Leisure Facilities - 4.86%
            Aimbridge Acquisition Co IncTL 1L 02/25SOFR + 6.50% 3/11/2030USD1,715 1,715 (b)
            Aimbridge Acquisition Co IncTL 2L 02/25SOFR + 7.50% 3/11/2030USD1,128 1,128 (b) (d)
            ClubCorp Club Operations IncTL 1L 10/23SOFR + 5.00% 9/18/2026USD15,080 15,118 
            Herschend Family Entertainment CorpTL 1L B 08/21SOFR + 3.00% 8/27/2028USD1,575 1,567 
            World Choice Investments LLCTL 1L B 07/24SOFR + 4.75% 8/16/2031USD5,366 5,379 
        Leisure Products - 1.70%
            Camping World Good SamTL 1L B 05/21SOFR + 2.50% 6/3/2028USD3,326 3,171 
            Topgolf Callaway Brands CorpTL 1L B 03/23SOFR + 3.00% 3/15/2030USD5,851 5,527 
        Life Sciences Tools & Services - 0.13%
            Clinigen LtdTL 1L B 01/25EURIBOR + 3.75% 4/19/2029EUR592 667 
        Oil & Gas Equipment & Services - 0.64%
            WaterBridge NDB Operating LLCTL 1L B 04/24SOFR + 4.00% 5/10/2029USD3,303 3,258 
        Oil & Gas Storage & Transportation - 1.64%
            Brazos Midstream Holdings LLCTL 1L B 02/25SOFR + 3.00% 2/11/2030USD1,033 1,032 
            NGL Energy Partners LP / NGL Energy Finance CorpTL 1L B 01/24SOFR + 3.75% 2/3/2031USD1,214 1,156 
            UGI Energy Services LLCTL 1L B 06/24SOFR + 2.50% 2/22/2030USD927 928 
            WaterBridge Midstream Operating LLCTL 1L B 06/24SOFR + 4.75% 6/27/2029USD5,510 5,277 
    See accompanying notes to financial statements.
    7

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Issuer Asset Reference Rate & SpreadMaturity DateCurrencyParFair ValueFootnotes
        Other Specialty Retail - 0.59%
            Harbor Freight Tools USA IncTL 1L B 05/24SOFR + 2.50% 6/11/2031USD3,221 $3,007 
        Packaged Foods & Meats - 0.35%
            Valeo Foods Group LtdTL 1L 05/21 EUREURIBOR + 3.75% 9/29/2028EUR1,609 1,810 
        Pharmaceuticals - 1.28%
            Antigua Bidco LtdTL 1L 05/24 EUREURIBOR + 4.25% 2/28/2030EUR1,244 1,289 
            Dechra Pharmaceuticals LtdTL 1L B 12/24 (EUR)EURIBOR + 3.50% 1/27/2032EUR1,560 1,754 
            Nidda Healthcare Holding AGTL 1L B3 06/24 EUREURIBOR + 4.00% 2/21/2030EUR906 1,028 
            Opella Healthcare LLCTL 1L B 03/25 EUREURIBOR + 3.50% 3/31/2032EUR2,218 2,512 
        Publishing - 0.29%
            Emerald Expositions Holding IncTL 1L B 01/25SOFR + 3.75% 1/30/2032USD1,475 1,477 
        Renewable Electricity - 1.30%
            WIN Waste InnovationsTL 1L B 03/21SOFR + 2.75% 3/24/2028USD6,747 6,673 
        Research & Consulting Services - 0.30%
            Kroll (fka Duff & Phelps)TL 1L B 03/20SOFR + 3.75% 4/9/2027USD1,624 1,543 
        Soft Drinks & Non-alcoholic Beverages - 0.83%
            Primo Brands CorpTL 1L B 01/25SOFR + 2.25% 3/31/2028USD4,294 4,266 
        Specialized Finance - 0.13%
            Alter Domus SarlTL 1L B 05/24SOFR + 3.50% 10/30/2031USD647 649 
            Alter Domus SarlTL 1L DD 05/24SOFR + 3.50% 10/30/2031USD48 — (h)
        Specialty Chemicals - 3.07%
            Champion/DSM enggTL 1L B1 03/23 (USD)SOFR + 5.50% 3/29/2030USD5,102 4,596 
            Flint Group GmbHTL 2L B 09/23 PIK (HoldCo) EUR6.90% PIK, EURIBOR + 0.10%12/31/2027EUR347 46 (d)
            Solenis International LPTL 1L B 05/24 EUREURIBOR + 3.75% 6/20/2031EUR493 554 
            Vantage Specialty Chemicals IncTL 1L B 02/23SOFR + 4.75% 10/26/2026USD11,221 10,548 
        Systems Software - 2.40%
            Precisely Software IncTL 1L B 10/21SOFR + 4.00% 4/24/2028USD4,611 4,299 
            Precisely Software IncTL 2L 03/21SOFR + 7.25% 4/23/2029USD4,907 4,566 
            SolarWinds Holdings IncTL 1L 03/25SOFR + 4.00% 4/16/2032USD3,549 3,434 
        Trading Companies & Distributors - 1.16%
            FleetPride CorporationTL 2L 01/19SOFR + 8.75% 12/21/2026USD2,156 1,970 
            White Cap Construction Supply IncTL 1L B 06/24SOFR + 3.25% 10/19/2029USD4,044 3,952 
    TOTAL LEVERAGED LOANS (Amortized cost $370,031)$360,504 
    See accompanying notes to financial statements.
    8

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    IssuerAsset
    Maturity Date
    CurrencyParFair ValueFootnotes
    High Yield Securities - 54.43%
        Alternative Carriers - 2.93%
            iliad SA8.500% 04/2031 (USD)4/15/2031USD3,446$3,639 (f)
            Level 3 Financing Inc10.000% 10/2032 10/15/2032USD2,8172,815 (f)
            Level 3 Financing Inc3.875% 10/2030 10/15/2030USD743590 (f)
            Level 3 Financing Inc4.000% 04/2031 4/15/2031USD5,2684,137 (f)
            Zayo Group LLC4.000% 03/2027 3/1/2027USD4,1673,844 (a) (f)
        Application Software - 2.41%
            Cision Ltd10.000% 06/2031 6/30/2031USD5,8692,846 (f)
            Dye & Durham Ltd8.625% 04/2029 4/15/2029USD6,2786,392 (f)
            TIBCO Software Inc8.250% 06/2032 6/30/2032USD9821,025 (f)
            TIBCO Software Inc9.000% 09/2029 9/30/2029USD2,0442,061 (f)
        Asset Management & Custody Banks - 0.41%
            Hightower Holding LLC9.125% 01/2030 1/31/2030USD2,0642,113 (f)
        Automotive Parts & Equipment - 0.88%
            Adient Global Holdings Ltd7.500% 02/2033 2/15/2033USD1,9361,836 (f)
            Garrett Motion Inc7.750% 05/2032 5/31/2032USD650649 (f)
            LCI Industries3.000% 03/20303/1/2030USD138128 (f)
            Truck Hero Inc6.250% 02/2029 2/1/2029USD2,5351,894 (f)
        Automotive Retail - 1.37%
            Mavis Discount Tire Inc6.500% 05/2029 5/15/2029USD7,5907,010 (f)
        Biotechnology - 0.27%
            Immunocore Holdings PLC2.500% 02/20302/1/2030USD1,6431,406 
        Broadline Retail - 0.22%
            Bubbles Bidco SPA4.250% 09/20319/30/2031EUR9761,103 (f)
        Building Products - 2.86%
            Oldcastle Buildingenvelope Inc9.500% 04/2030 4/15/2030USD8,8638,076 (f)
            PrimeSource Building Products Inc5.625% 02/2029 2/1/2029USD4,6543,646 (f)
            PrimeSource Building Products Inc6.750% 08/2029 8/1/2029USD3,6802,914 (f)
        Cable & Satellite - 5.21%
            Block Communications Inc4.875% 03/2028 3/1/2028USD7,3566,889 (f)
            Cable One Inc0.000% 03/20263/15/2026USD6,7316,351 (c)
            Cable One Inc4.000% 11/2030 11/15/2030USD3,9833,244 (f)
            Cablevision Lightpath LLC5.625% 09/2028 9/15/2028USD6,2665,809 (f)
            CSC Holdings LLC (Altice USA)11.750% 01/2029 1/31/2029USD608575 (f)
            CSC Holdings LLC (Altice USA)4.125% 12/2030 12/1/2030USD5,5893,836 (f)
    See accompanying notes to financial statements.
    9

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    IssuerAsset
    Maturity Date
    CurrencyParFair ValueFootnotes
        Casinos & Gaming - 0.67%
            Allwyn International AS7.250% 04/2030 4/30/2030EUR997$1,195 (f)
            Great Canadian Gaming Corp8.750% 11/2029 11/15/2029USD2,2362,219 (f)
        Commercial Printing - 0.56%
            Multi-Color Corp10.500% 07/2027 7/15/2027USD1,9151,716 (f)
            Multi-Color Corp9.500% 11/2028 11/1/2028USD1,3021,139 (f)
        Commodity Chemicals - 0.06%
            Mativ Holdings Inc8.000% 10/2029 10/1/2029USD384320 (f)
        Construction & Engineering - 2.14%
            Brand Energy & Infrastructure Services Inc10.375% 08/2030 8/1/2030USD4,6064,381 (f)
            Maxim Crane Works LP / Maxim Finance Corp11.500% 09/2028 9/1/2028USD6,6796,604 (f)
        Diversified Banks - 0.09%
            Lloyds Banking Group PLC5.590% 11/203511/26/2035USD444445 
        Diversified Chemicals - 2.39%
            Chemours Co/The4.625% 11/2029 11/15/2029USD4,4903,766 (f)
            Chemours Co/The5.375% 05/20275/15/2027USD320312 
            Chemours Co/The5.750% 11/2028 11/15/2028USD3,8103,456 (f)
            Chemours Co/The8.000% 01/2033 1/15/2033USD3,9733,584 (f)
            Fire BC SpA10.000% 02/2028 2/6/2028EUR9331,111 (f)
        Diversified Support Services - 3.51%
            Allied Universal Holdco LLC6.000% 06/2029 6/1/2029USD4,4794,208 (f)
            Allied Universal Holdco LLC9.750% 07/2027 7/15/2027USD5,0705,093 (f)
            Garda World Security Corp8.250% 08/2032 8/1/2032USD4,0013,936 (f)
            Garda World Security Corp8.375% 10/2032 11/15/2032USD3,9753,925 (f)
            Techem Energy Services GmbH/Germany6.000% 07/2026 7/30/2026EUR710803 (f)
        Electronic Components - 2.54%
            CommScope Inc5.000% 03/20273/15/2027USD8,9917,834 
            CommScope Inc8.250% 03/2027 3/1/2027USD5,6875,188 (f)
        Health Care Technology - 0.00%
            Teladoc Health Inc1.250% 06/20276/1/2027USD33 
        Hotels, Resorts & Cruise Lines - 3.23%
            NCL Corp Ltd1.125% 02/20272/15/2027USD17,48116,559 
        Household Products - 0.06%
            Energizer Holdings Inc6.500% 12/2027 12/31/2027USD313315 (f)
        Industrial Machinery & Supplies & Components - 3.03%
            SPX FLOW Inc8.750% 04/2030 4/1/2030USD15,39115,538(f)
    See accompanying notes to financial statements.
    10

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    IssuerAsset
    Maturity Date
    CurrencyParFair ValueFootnotes
        Insurance Brokers - 0.97%
            Ardonagh Group Ltd/The6.875% 02/2031 (EUR)2/15/2031EUR4,315$4,951 (f)
        Integrated Oil & Gas - 0.05%
            Eni SpA5.950% 05/2054 5/15/2054USD289272 (a) (f)
        Integrated Telecommunication Services - 0.73%
            Numericable-SFR8.125% 02/2027 2/1/2027USD4,0783,736 (f)
        IT Consulting & Other Services - 0.60%
            Centurion Bidco SpA8.625% 02/2030 2/15/2030EUR1,8222,138 (f)
            Sabre Inc10.750% 11/2029 11/15/2029USD445426 (f)
            Sabre Inc8.625% 06/2027 6/1/2027USD517495 (f)
        Leisure Facilities - 4.11%
            Merlin Entertainments PLC4.500% 11/2027 11/15/2027EUR10,07810,765 (f)
            Merlin Entertainments PLC6.625% 11/2027 11/15/2027USD9,1888,699 (f)
            Merlin Entertainments PLC7.375% 06/2030 6/15/2030EUR7886 (f)
            Merlin Entertainments PLC8.375% 02/2032 2/15/2032USD1,5831,500 (f)
        Leisure Products - 0.20%
            Inter Media and Communication SpA6.750% 02/2027 2/9/2027EUR8931,024 (f)
        Marine Ports & Services - 0.68%
            Direct ChassisLink Inc7.750% 11/2029 11/15/2029USD3,7503,497 (f)
        Oil & Gas Equipment & Services - 0.12%
            Archrock Partners LP / Archrock Partners Finance Corp6.875% 04/2027 4/1/2027USD148148 (f)
            Aris Water (fka Solaris Midstream Holdings LLC)7.250% 04/2030 4/1/2030USD456453 (f)
        Oil & Gas Exploration & Production - 1.58%
            Encino Acquisition Partners Holdings LLC8.500% 05/2028 5/1/2028USD1,4751,477 (f)
            Northern Oil & Gas Inc8.125% 03/2028 3/1/2028USD1,8601,838 (f)
            Sitio Royalties Corp7.875% 11/2028 11/1/2028USD1,7401,790 (f)
            SM Energy Co7.000% 08/2032 8/1/2032USD1,5651,444 (f)
            Talos Production Inc9.375% 02/2031 2/1/2031USD1,6231,528 (f)
        Oil & Gas Storage & Transportation - 1.73%
            Genesis Energy8.875% 04/20304/15/2030USD1,4201,451 
            Global Partners LP / GLP Finance Corp8.250% 01/2032 1/15/2032USD297303 (f)
            NGL Energy Partners LP / NGL Energy Finance Corp8.125% 02/2029 2/15/2029USD2,9782,802 (f)
            NGL Energy Partners LP / NGL Energy Finance Corp8.375% 02/2032 2/15/2032USD3,6733,353 (f)
            TransMontaigne Partners LLC8.500% 06/2030 6/15/2030USD927934 (f)
        Packaged Foods & Meats - 0.21%
            Chobani LLC9.500% 10/202910/1/2029USD1,0251,089(d) (f)
    See accompanying notes to financial statements.
    11

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    IssuerAsset
    Maturity Date
    CurrencyParFair ValueFootnotes
        Paper & Plastic Packaging Products & Materials - 0.87%
            Novolex Holdings LLC8.750% 04/2030 4/15/2030USD4,320$4,455 (f)
        Paper Products - 0.54%
            Fiber Bidco Spa10.750% 06/20296/15/2029EUR2,6262,741 (d) (f)
        Passenger Airlines - 2.43%
            JetBlue Airways Corp0.500% 04/20264/1/2026USD12,81712,112 (f)
            United Continental Holdings Inc4.600% 03/20263/1/2026USD355350 
        Pharmaceuticals - 0.14%
            Nidda Healthcare Holding AG7.500% 08/2026 8/21/2026EUR643742 (f)
        Real Estate Services - 1.64%
            Anywhere Real Estate Group LLC0.250% 06/20266/15/2026USD8,2997,782 
            Emeria Europe SAS7.750% 03/20283/31/2028EUR615629 
        Research & Consulting Services - 0.20%
            Amentum Holdings Inc7.250% 08/2032 8/1/2032USD1,0111,029 (f)
        Restaurants - 2.20%
            Golden Nugget Inc.6.750% 07/2030 1/15/2030USD12,86711,271 (f)
        Specialty Chemicals - 0.21%
            Solenis International LP9.625% 11/2028 11/15/2028EUR9161,085 (f)
        Trading Companies & Distributors - 0.40%
            AerCap Holdings6.500% 06/2045 6/15/2045USD2,0292,031 (f)
    TOTAL HIGH YIELD SECURITIES (Amortized cost $284,551)$278,904 
    See accompanying notes to financial statements.
    12

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    IssuerAssetReference Rate &
    Spread
    Maturity
    Date
    CurrencyParFair ValueFootnotes
    Asset Backed Securities - 13.83%
        Specialized Finance - 13.83%
            Accunia European CLO IV DACACCUN 4A EEURIBOR + 5.67% 4/20/2033EUR518$576 (b)
            AGL CLO 24 LtdAGL 2023-24A ESOFR + 8.65% 7/25/2036USD1,2501,247 (b)
            AGL CLO 5 LtdAGL 2020-5A ERRSOFR + 6.09% 7/20/2034USD165161 (b)
            AMMC CLO 26 LtdAMMC 2023-26A ERSOFR + 6.50% 4/15/2036USD447446 (b)
            Anchorage Capital Clo 20 LtdANCHC 2021-20A ERSOFR + 7.00% 1/20/2035USD536523 (b)
            Anchorage Capital CLO 21 LtdANCHC 2021-21A ERSOFR + 6.25% 10/20/2034USD745723 (b)
            Anchorage Capital CLO 6 LtdANCHC 2015-6A ER3SOFR + 7.29% 4/22/2034USD329325 (b)
            Apidos CLO XIAPID 2012-11A ER4SOFR + 6.00% 4/17/2034USD1,8521,852 (b)
            Apidos CLO XLV LtdAPID 2023-45A DSOFR + 5.20% 4/26/2036USD392394 (b)
            Apidos CLO XXIIIAPID 2015-23A ERRSOFR + 5.20% 4/15/2033USD1,4071,361 (b)
            Ares LXII CLO LtdARES 2021-62A ESOFR + 6.76% 1/25/2034USD387382 (b)
            Ares XXVII CLO LtdARES 2013-2A ER3SOFR + 6.75% 10/28/2034USD1,0881,086 (b)
            Ares XXXIX CLO LtdARES 2016-39A ER3SOFR + 6.75% 7/18/2037USD1,3861,380 (b)
            Aurium CLO XII DACACLO 12A EEURIBOR + 6.00% 10/17/2037EUR496550 (b)
            Bain Capital Credit Clo 2019-3 LtdBCC 2019-3A ERRSOFR + 6.85% 10/21/2034USD283271 (b)
            Bain Capital Credit CLO 2022-2 LtdBCC 2022-2A ESOFR + 7.84% 4/22/2035USD1,1161,093 (b)
            Balboa Bay Loan Funding 2021-1 LtdBOBA 2021-1A ESOFR + 6.42% 7/20/2034USD945907 (b)
            Ballyrock CLO 19 LtdBALLY 2022-19A DSOFR + 7.11% 4/20/2035USD182179 (b)
            Barings CLO Ltd 2022-IBABSN 2022-1A ESOFR + 7.00% 4/15/2035USD443421 (b)
            Benefit Street Partners CLO XXV LtdBSP 2021-25A ERSOFR + 4.60% 1/15/2035USD311301 (b)
            Benefit Street Partners CLO XXXIV LtdBSP 2024-34A ESOFR + 6.70% 7/25/2037USD323321 (b)
            BlueMountain CLO XXVI LtdBLUEM 2019-26A ERSOFR + 7.39% 10/20/2034USD430415 (b)
            BlueMountain CLO XXVIII LtdBLUEM 2021-28A ESOFR + 6.66% 4/15/2034USD575554 (b)
            BlueMountain CLO XXXII LtdBLUEM 2021-32A ERSOFR + 6.60% 10/15/2034USD514495 (b)
            BlueMountain CLO XXXIV LtdBLUEM 2022-34A ESOFR + 7.55% 4/20/2035USD1,1501,124 (b)
            Capital Four CLO VII DACCFOUR 7A FEURIBOR + 8.22% 4/25/2037EUR1,0471,148 (b)
            Carlyle Euro CLO 2021-1 DACCGMSE 2021-1A DEURIBOR + 6.12% 1/15/2034EUR519577 (b)
            CARLYLE US CLO 2021-4 LTDCGMS 2021-4A ESOFR + 6.60% 4/20/2034USD631631 (b)
            Carlyle US CLO 2024-2 LtdCGMS 2024-2A ESOFR + 6.85% 4/25/2037USD395395 (b)
            Cedar Funding XVIII CLO LtdCEDF 2024-18A ESOFR + 6.65% 4/23/2037USD532535 (b)
            Cifc Funding 2014-IV-R LtdCIFC 2014-4R1 DRRSOFR + 5.80% 1/17/2035USD1,9831,912 (b)
            CIFC Funding 2022-II LtdCIFC 2022-2A ERSOFR + 4.75% 4/19/2035USD289277 (b)
            Clonmore Park CLO DACCLONP 1A EREURIBOR + 6.82% 8/21/2035EUR350396 (b)
            CVC Cordatus Loan Fund XXXI DACCORDA 31A EEURIBOR + 6.64% 6/15/2037EUR402458 (b)
            CVC Cordatus Loan Fund XXXII DACCORDA 32A EEURIBOR + 5.96% 9/15/2038EUR790877 (b)
            Dryden 113 CLO LtdDRSLF 2022-113A ER2SOFR + 7.40% 10/15/2037USD674681 (b)
    See accompanying notes to financial statements.
    13

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    IssuerAssetReference Rate &
    Spread
    Maturity
    Date
    CurrencyParFair ValueFootnotes
            Dryden 87 CLO LtdDRSLF 2021-87A ESOFR + 6.41% 5/20/2034USD745$724 (b)
            Fernhill Park CLO DACFRNPK 1A EEURIBOR + 6.68% 4/15/2037EUR301339(b)
            Galaxy 33 CLO LtdGALXY 2024-33A ESOFR + 6.65% 4/20/2037USD376375(b)
            Galaxy XXII CLO LtdGALXY 2016-22A ERRRSOFR + 6.75% 4/16/2034USD319315(b)
            Galaxy XXV CLO LtdGALXY 2018-25A ERSOFR + 6.50% 4/25/2036USD465459(b)
            Generate CLO LtdGNRT 2024-15A ESOFR + 6.70% 7/20/2037USD388388 (b)
            Golub Capital Partners CLO 53B LtdGCBSL 2021-53A ERSOFR + 4.70% 7/20/2034USD456438(b)
            Henley CLO X DACHNLY 10A EEURIBOR + 6.65% 7/20/2037EUR187212(b)
            HPS Loan Management 10-2016 LtdHLM 10A-16 DR3SOFR + 6.45% 4/20/2034USD724713(b)
            Jamestown CLO XIV LtdJTWN 2019-14A DRRSOFR + 5.65% 10/20/2034USD1,020967(b)
            Jamestown CLO XVI LtdJTWN 2021-16A ERSOFR + 6.95% 7/25/2034USD541526(b)
            Jamestown CLO XVIII LtdJTWN 2022-18A ESOFR + 7.87% 7/25/2035USD392388(b)
            Jubilee CLO 2017-XIX DACJUBIL 2017-19A FREURIBOR + 8.70% 4/25/2038EUR711746(b)
            Madison Park Funding XLIX LtdMDPK 2021-49A ERSOFR + 4.60% 10/19/2034USD1,4601,384(b)
            Madison Park Funding XLVI LtdMDPK 2020-46A ERRSOFR + 5.25% 10/15/2034USD1,6071,554(b)
            Madison Park Funding XXI LtdMDPK 2016-21A DRRSOFR + 7.76% 10/15/2032USD2,2522,251(b)
            Madison Park Funding XXXVI LtdMDPK 2019-36A ERRSOFR + 5.60% 4/15/2035USD563544(b)
            Magnetite XXXI LtdMAGNE 2021-31A ESOFR + 6.00% 7/15/2034USD1,5001,502(b)
            Marble Point CLO XVI LtdMP16 2019-2A ERSOFR + 7.27% 11/16/2034USD684653(b)
            Neuberger Berman Loan Advisers CLO 35 LtdNEUB 2019-35A ERSOFR + 5.95% 1/19/2033USD556556(b)
            Neuberger Berman Loan Advisers Clo 42 LtdNEUB 2021-42A ERSOFR + 4.60% 7/16/2036USD291280(b)
            Neuberger Berman Loan Advisers Clo 43 LtdNEUB 2021-43A ERSOFR + 4.60% 7/17/2036USD794768(b)
            Neuberger Berman Loan Advisers Clo 44 LtdNEUB 2021-44A ERSOFR + 5.15% 10/16/2035USD415402(b)
            Neuberger Berman Loan Advisers CLO 45 LtdNEUB 2021-45A ERSOFR + 4.85% 10/14/2036USD1,7511,688(b)
            Neuberger Berman Loan Advisers CLO 46 LtdNEUB 2021-46A ERSOFR + 5.15% 1/20/2037USD940917(b)
            Neuberger Berman Loan Advisers Euro CLO 3 DACNEUBE 2022-3A FEURIBOR + 8.87% 10/25/2034EUR9481,046(b)
            Neuberger Berman Loan Advisers Euro CLO 5 DACNEUBE 2022-5A FREURIBOR + 9.18% 1/20/2037EUR1,1111,266(b)
            Oaktree CLO 2021-2 LtdOAKCL 2021-2A ERSOFR + 4.50% 1/15/2035USD1,006951(b)
            Octagon Investment Partners 51 LtdOCT51 2021-1A ERSOFR + 5.65% 7/20/2034USD1,1491,116(b)
            Palmer Square European CLO 2022-2 DACPLMER 2022-2A FREURIBOR + 8.15% 1/15/2038EUR1,0671,164(b)
            Palmer Square European CLO 2023-2 DACPLMER 2023-2A FEURIBOR + 8.39% 10/15/2036EUR1,0391,150(b)
            Palmer Square European CLO 2024-1 DACPLMER 2024-1A EEURIBOR + 6.68% 5/15/2037EUR301340(b)
            Parallel 2021-1 LtdPARL 2021-1A ERSOFR + 6.25% 7/15/2034USD336317(b)
            Penta CLO 10 DACPENTA 2021-10A FEURIBOR + 8.80% 11/20/2034EUR9651,057(b)
            Penta CLO 12 DACPENTA 2022-12A EREURIBOR + 7.09% 5/9/2037EUR563641(b)
            Penta CLO 14 DACPENTA 2023-14A EREURIBOR + 6.35% 10/20/2037EUR340384(b)
            Penta CLO 16 DACPENTA 2024-16A EEURIBOR + 6.79% 10/18/2036EUR362407(b)
            Penta CLO 7 DACPENTA 2020-7A FREURIBOR + 8.43% 1/25/2039EUR9901,071(b)
            Post CLO 2021-1 LTDPOST 2021-1A ERSOFR + 5.70% 10/15/2034USD1,3641,342(b)
    See accompanying notes to financial statements.
    14

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    IssuerAssetReference Rate &
    Spread
    Maturity
    Date
    CurrencyParFair ValueFootnotes
            Providus Clo X DACPRVD 10A EEURIBOR + 6.74% 11/18/2038EUR304$343 (b)
            Rad CLO 4 LtdRAD 2019-4A ERSOFR + 6.50% 4/25/2032USD419420(b)
            Regatta XXVIII Funding LtdREG28 2024-2A ESOFR + 7.00% 4/25/2037USD376375 (b)
            Rockford Tower CLO 2020-1 LtdRockford Tower 2020-1 Refi Class ERSOFR + 5.90% 1/20/2036USD374354(b)
            Romark CLO IV LtdRMRK 2021-4A DSOFR + 7.21% 7/10/2034USD801775(b)
            Romark Credit Funding II LtdRCF 2021-2A E7.08% 10/25/2039USD1,2001,152 (b)
            Sculptor CLO XXVIII LtdSCUL 28A ERSOFR + 6.30% 1/20/2035USD717681(b)
            Shackleton 2019-XV CLO LtdSHACK 2019-15A D1RSOFR + 3.45% 1/15/2032USD367360(b)
            Sixth Street CLO XIX LtdSIXST 2021-19A ESOFR + 6.16% 7/20/2034USD808805(b)
            TCW CLO 2022-1 LtdTCW 2022-1A DJRSOFR + 4.28% 1/20/2038USD563559(b)
            Trimaran Cavu 2021-1 LtdCAVU 2021-1A ERSOFR + 7.00% 7/23/2037USD1,1291,108(b)
            Trinitas Clo XX LtdTRNTS 2022-20A ERSOFR + 5.75% 7/20/2035USD592587(b)
            Trinitas Euro CLO VI DACTRNTE 6A FEURIBOR + 8.31% 4/15/2037EUR1,0711,180(b)
            Trinitas Euro CLO VII DACTRNTE 7A EEURIBOR + 6.55% 7/25/2037EUR264297(b)
            Voya CLO 2017-3 LtdVOYA 2017-3A DRRSOFR + 5.80% 4/20/2034USD2,0682,022(b)
            Voya CLO 2019-3 LtdVOYA 2019-3A ERSOFR + 6.76% 10/17/2032USD580576(b)
            Voya CLO 2019-4 LtdVOYA 2019-4A ERSOFR + 6.97% 1/15/2035USD1,1251,116(b)
            Voya CLO 2021-1 LtdVOYA 2021-1A ERSOFR + 5.75% 7/15/2034USD215206(b)
            Voya CLO 2022-1 LtdVOYA 2022-1A ERSOFR + 6.90% 4/20/2035USD1,6471,636(b)
    TOTAL ASSET BACKED SECURITIES (Amortized cost $70,893)$70,867 
    See accompanying notes to financial statements.
    15

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Issuer Asset Maturity DateCurrencySharesFair ValueFootnotes
    Equity & Other Investments - 2.32%
        Broadline Retail - 0.41%
            Belk IncCommon StockUSD82,904$2,122 (a) (b) (e)
        Construction & Engineering - 0.00%
            Yak Access LLCCommon StockUSD9,35825 (a) (e)
        Diversified Metals & Mining - 0.20%
            Foresight Energy LLCCommon StockUSD320,3811,024(a) (b) (e)
        Hotels, Resorts & Cruise Lines - 0.31%
            NCL Corp LtdCommon StockUSD100,4441,610 
        Human Resource & Employment Services - 0.01%
            SIRVA Worldwide IncCommon Stock (Class A)USD2,475— (a) (b) (e)
            SIRVA Worldwide IncCommon Stock (Class B)USD32,0771 (a) (b) (e)
            SIRVA Worldwide Inc15.250% 08/2030 (Class A)8/20/2030USD56918 (a) (b) (d)
            SIRVA Worldwide Inc15.250% 08/2030 (Class B)8/20/2030USD2879 (a) (b) (d)
        Leisure Facilities - 1.28%
            Aimbridge Acquisition Co IncCommon StockUSD104,7326,566(b) (e)
        Oil & Gas Equipment & Services - 0.02%
            Proserv Group Parent LLCPreferred StockUSD36,24994 (b) (e)
        Health Care Facilities - 0.08%
            Quorum Health CorpTrade ClaimUSD3,964,000417(b) (e)
    TOTAL EQUITY & OTHER INVESTMENTS (Cost $20,259)$11,886 
    TOTAL INVESTMENTS (Cost $745,734)$722,161 
    Money Market Funds - 10.48%
    U.S. Government Securities - 10.48%
            Morgan Stanley Institutional Liquidity Fund - Government PortfolioClass INUSD53,698,793 $53,699 (g)
    TOTAL MONEY MARKET FUNDS (Cost $53,699)$53,699 
    TOTAL INVESTMENTS INCLUDING MONEY MARKET FUNDS (Cost $799,433) - 151.42%$775,860 
    LIABILITIES EXCEEDING OTHER ASSETS, NET - (51.42%)(263,476)
    NET ASSETS - 100.00%$512,384 







    See accompanying notes to financial statements.
    16

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    TLTerm loan.
    DDDelayed draw term loan
    1LFirst lien.
    2LSecond lien.
    EURIBOREuro Interbank Offered Rate as of April 30, 2025 was 2.17%
    SOFRSecured Overnight Financing Rate as of April 30, 2025 was 4.32%
    (a)Security considered restricted.
    (b)Value determined using significant unobservable inputs.
    (c)Zero coupon bond.
    (d)Represents a payment-in-kind (“PIK”) security which may pay interest/dividend in additional par/shares.
    (e)Non-income producing security.
    (f)Securities exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may only be resold to qualified institutional buyers in transactions exempt from registration.
    (g)The money market fund's average 30-day yield as of April 30, 2025 was 4.25%.
    (h)Investment is an unfunded or partially funded commitment.
    See accompanying notes to financial statements.
    17

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Statement of Assets and Liabilities
    As of April 30, 2025
    (in thousands, except share and per share data)
    Assets
    Investments, at fair value (cost $745,734)$722,161 
    Cash and cash equivalents54,208 
    Foreign currencies, at value (cost $2,247)1,950 
    Dividends and interest receivable9,584 
    Receivable for investments sold19,237 
    Other assets315 
    Total assets$807,455 
    Liabilities
    Credit facility (net of deferred financing costs $129)176,352 
    Mandatory redeemable preferred shares (net of deferred offering costs of $360)49,640 
    Payable for investments purchased65,705 
    Distribution Payable155 
    Investment advisory fees payable595 
    Trustees' fees payable1,585 
    Other accrued expenses1,039 
    Total liabilities295,071 
    Commitments and Contingencies (Note 7)
    Net assets$512,384 
    Net Assets
    Paid-in capital (unlimited shares authorized — $0.001 par value)
    $611,210 
    Accumulated deficit(98,826)
    Net assets$512,384 
    Net asset value, price per share (40,870,580 shares)
    $12.54 
        
    See accompanying notes to financial statements.
    18

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Statement of Operations
    For the Six Months Ended April 30, 2025
    (in thousands)
    Investment income
    Interest income$26,537 
    Dividend Income1,435 
    Payment-in-kind interest income539 
    Other income825 
    Total investment income29,336 
    Expenses
    Credit facility interest expense3,555 
    Investment advisory fees3,514 
    Preferred shares interest expense982 
    Term loan fees479 
    Professional fees472 
    Administrative fees82 
    Trustees' fees69 
    Other expenses263 
    Total expenses before waiver9,416 
    Investment advisory fees waiver(185)
    Net expenses9,231 
    Net investment income20,105 
    Realized and unrealized gains (losses)
    Net realized losses on
    Investments(11,458)
    Foreign currency transactions(325)
    Net realized losses(11,783)
    Net change in unrealized appreciation (depreciation) of
    Investments(22,358)
    Foreign currency translation718 
    Deferred Trustees’ fees18 
    Net change in unrealized depreciation(21,622)
    Net realized and unrealized losses(33,405)
    Net decrease in net assets resulting from operations$(13,300)
    See accompanying notes to financial statements.
    19

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Statements of Changes in Net Assets
    (in thousands, except share data)
    Six Months Ended April 30, 2025 (Unaudited)Year Ended October 31, 2024
    Increase (decrease) in net assets resulting from operations
    Net investment income$20,105 $39,380 
    Net realized losses(11,783)(21,760)
    Net change in unrealized (depreciation) appreciation (21,622)48,360 
    Net (decrease) increase in net assets resulting from operations(13,300)65,980 
    Distributions to shareholders
    Net investment income(23,129)(39,549)
    Total distributions to shareholders(23,129)(39,549)
    Shareholder transactions (Note 11)
    Asset acquisition (13,712,057 shares)179,504 — 
    Shares issued in reinvestment of dividends (12,854 and 25,249 shares, respectively)172 347 
    Increase in net assets from shareholder transactions179,676 347 
    Net increase in net assets143,247 26,778 
    Net assets
    Beginning of period (27,145,669 and 27,120,420 shares, respectively)369,137 342,359 
    End of period (40,870,580 and 27,145,669 shares, respectively)$512,384 $369,137 
    See accompanying notes to financial statements.
    20

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Statement of Cash Flows
    For the Six Months Ended April 30, 2025
    (in thousands)
    Cash Flows from Operating Activities:
    Net decrease in net assets resulting from operations$(13,300)
    Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities:
    Purchases of investments(371,342)
    Proceeds from sales and repayments of investments364,716 
    Net change in unrealized appreciation on investments22,358 
    Net realized loss on investments11,458 
    Net accretion of premiums and discounts(3,871)
    Net change in unrealized appreciation on foreign currency translation(718)
    Payment-in-kind interest(539)
    Net realized loss on investments (foreign currency related)381 
    Net change in unrealized appreciation on deferred Trustees’ fees(18)
    Amortization of deferred offering costs40 
    Changes in assets and liabilities:
    Increase in payable for investments purchased32,191 
    Increase in receivable for investments sold(15,662)
    Decrease in other accrued expenses(4,032)
    Increase in other assets(266)
    Decrease in dividends and interest receivable209 
    Increase in investment advisory fees payable64 
    Increase in Trustees' fees payable30 
    Net cash provided by operating activities21,699 
    Cash Flows from Financing Activities
    Cash dividends paid to shareholders(22,883)
    Proceeds from credit facility23,958 
    Financing costs paid(125)
    Net cash provided by financing activities950 
       Effect of exchange rate changes on cash
    (11)
    Net increase in cash and cash equivalents22,638 
    Cash and Cash Equivalents
    Beginning balance33,520 
    Ending balance$56,158 
    Supplemental disclosure of cash flow information and non-cash financing activities:
    Cash paid for interest expense$4,201 
    Reinvestment of shareholder distributions$172 
    Issuance of shares for asset acquisition$179,504 
    See accompanying notes to financial statements.
    21

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Financial Highlights
    Six Months Ended April 30, 2025 (Unaudited)
    Year Ended October 31,
    20242023202220212020
    Per share operating performance (1)
    Net asset value, beginning of period$13.60 $12.62 $12.47 $16.78 $14.86 $15.57 
    Income (loss) from investment operations
    Net investment income0.61 1.45 1.49 1.35 1.40 1.39 
    Net realized and unrealized gains (losses)(0.97)0.99 0.77 (4.40)1.78 (0.60)
    Total from investment operations(0.36)2.44 2.26 (3.05)3.18 0.79 
    Distributions from
    Net investment income(0.70)(1.46)(1.40)(1.26)(1.26)(1.50)
    Total distributions(0.70)(1.46)(1.40)(1.26)(1.26)(1.50)
    Dilutive effect of rights offering— — (0.71)— — — 
    Net asset value, end of period$12.54 $13.60 $12.62 $12.47 $16.78 $14.86 
    Total return (2)
    (10.03)%37.06 %15.51 %(27.01)%36.24 %(3.58)%
    Ratios to average net assets
    Expenses, before advisory fee waiver4.38 %5.32 %4.95 %3.56 %3.12 %3.73 %
    Expenses, after advisory fee waiver4.29 %5.32 %4.95 %3.56 %3.12 %3.73 %
    Net investment income, before advisory fee waiver9.26 %10.78 %11.72 %9.08 %8.49 %9.65 %
    Net investment income, after advisory fee waiver9.35 %10.78 %11.72 %9.08 %8.49 %9.65 %
    Supplemental data
    Market value/price$11.85 $13.95 $11.35 $11.08 $16.67 $13.25 
    Price premium (discount)(5.50)%2.57 %(10.06)%(11.15)%(0.66)%(10.83)%
    Net assets, end of period (000’s)$512,384 $369,137 $342,359 $253,597 $341,267 $302,336 
    Portfolio turnover rate (3)
    60 %59 %58 %32 %79 %73 %
    (1) Per share calculations were performed using average shares.
    (2)    Total return is computed based on NYSE market price of the Fund’s shares and excludes the effect of brokerage commissions. Distributions are assumed to be reinvested at the prices obtained under the Fund’s dividend reinvestment plan. Total return is for the period indicated and has not been annualized.
    (3) Portfolio turnover rate is for the period indicated and has not been annualized. Portfolio turnover for the six months ended April 30, 2025 excludes the assets acquired from the Insight Selection Income Fund.








    See accompanying notes to financial statements.
    22

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Notes to Financial Statements
    1.Organization
    KKR Income Opportunities Fund (the “Fund”) was organized on March 17, 2011 as a statutory trust under the laws of the State of Delaware. The Fund is a closed-end registered management investment company, which commenced operations on July 25, 2013. The Fund seeks to generate a high level of current income, with a secondary objective of capital appreciation. The Fund is diversified for purposes of the Investment Company Act of 1940, as amended (the “1940 Act”). KKR Credit Advisors (US) LLC serves as the Fund’s investment adviser (the “Adviser”).
    2.Summary of Significant Accounting Policies
    Basis of Presentation — The accompanying financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and are stated in United States (“U.S.”) dollars. The Fund is an investment company following accounting and reporting guidance in Financial Accounting Standards Board Accounting Standards (“FASB”) Codification Topic 946, Financial Services — Investment Companies. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in these financial statements. Actual results could differ from those estimates.
    Valuation of Investments — The Board of Trustees (the “Board”) of the Fund has adopted valuation policies and procedures to ensure investments are valued in a manner consistent with GAAP as required by the 1940 Act. The Board designated the Adviser as the valuation designee to perform fair valuations pursuant to Rule 2a-5 under the Investment Company Act of 1940 (the “Valuation Designee”). The Valuation Designee has primary responsibility for implementing the Fund’s valuation policies and procedures.
    Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity for disclosure purposes.
    Assets and liabilities recorded at fair value on the Statement of Assets and Liabilities are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined under GAAP, are directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, and are as follows:
    Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.
    Level 2 — Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, and inputs other than quoted prices that are observable for the asset or liability.
    Level 3 — Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.
    A significant decrease in the volume and level of activity for the asset or liability is an indication that transactions or quoted prices may not be representative of fair value because in such market conditions there may be increased instances of transactions that are not orderly. In those circumstances, further analysis of transactions or quoted prices is needed, and a significant adjustment to the transactions or quoted prices may be necessary to estimate fair value.
    The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new, whether the product is
    23

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    traded on an active exchange or in the secondary market, and the current market condition. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Fund in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the asset. The variability of the observable inputs affected by the factors described above may cause transfers between Levels 1, 2 and/or 3.
    Many financial assets and liabilities have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that the Fund and others are willing to pay for an asset. Ask prices represent the lowest price that the Fund and others are willing to accept for an asset. For financial assets and liabilities whose inputs are based on bid-ask prices, the Fund does not require that fair value always be a predetermined point in the bid-ask range. The Fund’s policy is to allow for mid-market pricing and adjust to the point within the bid-ask range that meets the Fund’s best estimate of fair value.
    Depending on the relative liquidity in the markets for certain assets, the Fund may transfer assets to Level 3 if it determines that observable quoted prices, obtained directly or indirectly, are not available.
    Investments are generally valued based on quotations from third party pricing services, unless such a quotation is unavailable or is determined to be unreliable or inadequately representing the fair value of the particular assets. In that case, valuations are based on either valuation data obtained from one or more other third party pricing sources, including broker dealers selected by the Adviser, or will reflect the Valuation Committee’s good faith determination of fair value based on other factors considered relevant. For assets classified as Level 3, valuations are based on various factors including financial and operating data of the company, company specific developments, market valuations of comparable companies and model projections.

    For the six months ended April 30, 2025, there were no significant changes to the Fund’s fair value methodologies.

    Investment Transactions — Investment transactions are accounted for on the trade date, the date the order to buy or sell is executed. Interest income, including payment-in-kind (“PIK”) interest income, is accrued as earned. PIK interest income is capitalized as additional principal, or collected in cash, on the interest payment dates. Dividends are recorded on the ex-dividend date. Discounts are accreted and premiums are amortized using the effective interest method over the holding period of the investment. Paydown gains and losses on asset-backed securities are recorded as an adjustment to interest income. Realized gains and losses are calculated on the specific identified cost basis.
    Cash and Cash Equivalents — Cash and cash equivalents includes cash on hand, cash held in banks and highly liquid investments with original maturities of three or fewer months. Cash equivalents consist solely of money market funds with financial institutions. As of April 30, 2025, the Fund was invested in the Morgan Stanley Institutional Liquidity Funds Government Portfolio — Institutional Class.
    Foreign Currency Transactions — The books and records of the Fund are maintained in U.S. dollars. All investments denominated in foreign currency are converted to the U.S. dollar using prevailing exchange rates at the end of the reporting period. Income, expenses, gains and losses on investments denominated in foreign currency are converted to the U.S. dollar using the prevailing exchange rates on the dates when the transactions occurred.
    The Fund bifurcates that portion of the results of operations resulting from changes in foreign exchange rates on investments and from the fluctuations arising from changes in market prices of securities held.
    Distributions to Shareholders — Distributions are declared and paid monthly and distributable net realized capital gains, if any, are declared and distributed at least annually. Distributions to shareholders are recorded on the ex- dividend date.
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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Income Taxes — The Fund has elected to be treated and has qualified, and intends to continue to qualify in each taxable year, as a “regulated investment company” under Subchapter M of the Internal Revenue Code of 1986, as amended, and in conformity with the Regulated Investment Company Modernization Act of 2010. The Fund will not be subject to federal income tax to the extent the Fund satisfies the requirements under Section 851 of the Internal Revenue Code, including distributing all of its investment company taxable income and capital gains to its shareholders based on the Fund’s fiscal year end of October 31.
    To avoid imposition of a 4.0% excise tax on undistributed income applicable to regulated investment companies, the Fund intends to declare each year as dividends in each calendar year at least 98.0% of its net investment income (earned during the calendar year) and 98.2% of its net realized capital gains (earned during the year ended October 31) plus undistributed amounts, if any, from prior years.
    The Fund evaluates tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether it is “more-likely-than-not” (i.e., greater than 50.0%) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management has analyzed the Fund’s tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions for the open tax years (2021-2024). However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities, ongoing analysis of and changes to tax laws, regulations and interpretations thereof.
    As of April 30, 2025, the Fund did not have a liability for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the six months ended April 30, 2025, the Fund did not incur any interest or penalties.
    Recent Accounting Pronouncements — In November 2023, the FASB issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280) (“ASU 2023-07”). ASU 2023-07 improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 enhances interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment and requires disclosure of the title of the chief operating decision maker (“CODM”) and an explanation of how the CODM uses the reported measure of segment profit or loss to assess segment performance and allocate resources. The Fund has adopted ASU 2023-07 and concluded that the adoption of this standard impacted financial statement disclosures only and did not affect the Fund’s financial position or results of operations.

    3.Risk Considerations
    The Fund invests mainly in leveraged loans, high yield securities, asset backed securities, common stocks and preferred stocks. These investments may involve certain risks, including, but not limited to, those described below:
    Global Economic and Market Conditions — The Fund is materially affected by market, economic and political conditions and events, such as natural disasters, epidemics and pandemics, wars, supply chain disruptions, economic sanctions, globally and in the jurisdictions and sectors in which it invests or operates, including factors affecting interest rates, the availability of credit, currency exchange rates, trade barriers, trade disputes and tariffs. For example, the conflict between Russia and Ukraine, the conflict between Hamas and Israel, rapid interest rate changes, heightened inflation, supply chain disruptions, geopolitical risks, economic sanctions and volatility in the banking and financial sectors have disrupted global economies and financial markets, and their prolonged economic impact is uncertain. Market, economic and political conditions and events are outside the Adviser’s control and could adversely affect the Fund’s operations and performance and the liquidity and value of the Fund’s investments and reduce the ability of the Fund to make attractive new investments.
    Market Discount Risk — The price of the Fund’s common shares of beneficial interest will fluctuate with market conditions and other factors. Shares of closed-end management investment companies frequently trade at a discount from their net asset value, which may increase the risk of loss.
    25

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Leverage Risk — Leverage is a speculative technique that may expose the Fund to greater risk and increased costs. When leverage is used, the net asset value and market price of the Fund’s shares and the Fund’s investment return will likely be more volatile.
    Market Risk — Bond markets rise and fall daily. As with any investment with performance tied to these markets, the value of an investment in the Fund will fluctuate, which means that shareholders could lose money.
    Interest Rate Risk — Interest rates will rise and fall over time. During periods when interest rates are low, the Fund’s yield and total return also may be low. Changes in interest rates also may affect the Fund’s share price and a sharp rise in interest rates could cause the Fund’s share price to fall. The longer the Fund’s duration, the more sensitive to interest rate movements its share price is likely to be.
    Credit Risk — The Fund is subject to the risk that a decline in the credit quality of an investment could cause the Fund to lose money or underperform. The Fund could lose money if the issuer or guarantor of an investment fails to make timely principal or interest payments or otherwise honor its obligations.
    Liquidity Risk — A particular investment may be difficult to purchase or sell. The Fund may be unable to sell illiquid securities at an advantageous time or price.
    Prepayment and Extension Risk — The Fund’s investments are subject to the risk that the investments may be paid off earlier or later than expected. Either situation could cause the Fund to hold investments paying lower than market rates of interest, which could hurt the Fund’s yield or share price.
    High Yield Risk — High yield securities and unrated securities of similar credit quality (sometimes called junk bonds) that the Fund may invest in are subject to greater levels of credit and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments.
    Foreign Investment Risk — The Fund’s investments in securities of foreign issuers may involve certain risks that are greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates (the currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, the U.S. dollar will decline in value relative to the currency being hedged) or exchange control regulations (including limitations on currency movements and exchanges); differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may be heightened in connection with investments in emerging markets.
    Issuer Risk — The value of securities may decline for a number of reasons that directly relate to the issuer, such as its financial strength, management performance, financial leverage and reduced demand for the issuer’s goods and services, as well as the historical and prospective earnings of the issuer and the value of its assets.
    4.Agreements
    Investment Advisory Agreement — The Adviser provides day-to-day portfolio management services to the Fund and has discretion to purchase and sell investments in accordance with the Fund’s objectives, policies, and restrictions. For the services it provides to the Fund, the Adviser receives an annual fee, payable monthly by the Fund, in an amount equal to 1.1% of the average daily value of the Fund’s Managed Assets (the “Investment Advisory Fee”). Beginning February 7, 2025 and through February 6, 2026, the Adviser has agreed to temporarily reduce its Investment Advisory Fee to 0.99%. “Managed Assets” means the total assets of the Fund (including any assets attributable to borrowings for investment purposes) minus the sum of the Fund’s accrued liabilities (other than liabilities representing borrowings for investment purposes).
    During periods when the Fund is using leverage, the Investment Advisory Fee paid to the Adviser will be higher than if the Fund does not use leverage because the Investment Advisory Fee paid is calculated based on the Fund’s Managed Assets, which includes the assets purchased through leverage.
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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    During the six months ended April 30, 2025, the Adviser earned an Investment Advisory Fee of $3.5 million.
    Administrator, Custodian and Transfer Agent — U.S. Bancorp Fund Services, LLC (“Fund Services” or “Administrator”), doing business as U.S. Bank Global Fund Services, serves as the Fund’s administrator pursuant to an administration agreement under which the Administrator provides administrative and accounting services.
    U.S. Bank N.A. (the “Custodian”) serves as the Fund’s custodian pursuant to a custody agreement. The Custodian is an affiliate of Fund Services.
    Fund Services serves as the Fund’s transfer agent pursuant to a transfer agency agreement.
    Deferred Trustees’ Compensation — The Fund has a Deferred Trustees’ Compensation plan (the “Plan”) that allows the Independent Trustees to defer compensation to a future payment period. The compensation is invested in shares of the Fund. The value of a participating Independent Trustee’s deferral account is based on the shares of deferred amounts as designated by the participating Independent Trustees. Changes in the value of the Independent Trustees’ deferral account are included in the Statement of Operations. The accrued obligations under the Plan, including unrealized appreciation (depreciation), are included on the Statement of Assets and Liabilities.
    Other — Certain officers of the Fund are also officers of the Adviser. Such officers are not paid by the Fund for serving as officers of the Fund.
    5.Fair Value
    The following table presents information about the Fund’s assets measured at fair value on a recurring basis as of April 30, 2025, and indicates the fair value hierarchy of the inputs utilized by the Fund to determine such fair value (in thousands):
    Investments in securitiesLevel 1Level 2Level 3Total
    Leveraged Loans$— $335,341 $25,163 $360,504 
    High Yield Securities— 278,904 — 278,904 
    Asset Backed Securities— — 70,867 70,867 
    Equity and Other Investments1,610 25 10,251 11,886 
    Money Market Fund53,699 — — 53,699 
    Total investments in securities$55,309 $614,270 $106,281 $775,860 
    27

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    The following are the details of the restricted securities held by the Fund (in thousands, except share amounts):
    Issuer (1)
    AssetPar/SharesCostFair ValueAcquisition
    Date
    % of Net
    Assets
    Leveraged Loans
            Zayo Group LLCTL 1L B 03/206,116$5,583 $5,707 3/19/20251.11%
            Parts Authority IncTL 1L 10/2010,7339,962 8,382 2/23/20231.64%
            Astound Broadband (RCN/Radiate)TL 1L B 10/217,3696,683 6,497 6/28/20231.27%
            Plaskolite, LLCTL 1L 04/2114,50414,321 13,955 12/21/20232.72%
            Accuride CorpTL Unsec 03/252,2873,053 5,494 2/25/20251.07%
            Foresight Energy LLCTL 1L A 06/20 2,1112,111 2,022 6/30/20200.39%
            Drive DeVilbiss Healthcare LLCTL 1L 03/217,9297,919 7,849 4/23/20211.53%
            Drive DeVilbiss Healthcare LLCTL 1L 09/221,1871,187 1,198 9/26/20220.23%
            ScionHealthTL 1L B 12/211,6901,612 787 12/17/20210.15%
            SIRVA Worldwide IncTL 1L 08/24 302302 302 8/20/20240.06%
            SIRVA Worldwide IncTL 1L 08/241,3031,296 1,303 8/20/20240.25%
            SIRVA Worldwide IncTL 1L DD 08/24 749465 474 8/22/20240.09%
    High Yield Securities
            Zayo Group LLC4.000% 03/2027 4,1673,828 3,844 5/18/20230.75%
            Eni SpA5.950% 05/2054 289286 272 2/7/20250.05%
    Equity & Other Investments
            Belk IncCommon Stock82,9041,362 2,122 7/22/20240.41%
            Yak Access LLCCommon Stock9,358— 25 3/10/20230.00%
            Foresight Energy LLCCommon Stock320,3813,666 1,024 6/30/20200.20%
            SIRVA Worldwide IncCommon Stock (Class A)2,4757 — 8/20/20240.00%
            SIRVA Worldwide IncCommon Stock (Class B)32,07737 1 8/20/20240.00%
            SIRVA Worldwide Inc15.250% 08/2030 (Class A)569578 18 8/20/20240.00%
            SIRVA Worldwide Inc15.250% 08/2030 (Class B)287127 9 8/20/20240.00%
    Total$64,385 $61,285 
    (1)Refer to the Schedule of Investments for more details on securities listed.
    The following is a reconciliation of the investments in which significant unobservable inputs (Level 3) were used in determining fair value (in thousands):
    Leveraged
    Loans
    Asset Backed SecuritiesEquity and Other Investments
    Balances as of October 31, 2024$23,635 $35,029 $4,730 
    Purchases3,355 56,647 — 
    Sales and paydowns(1,604)(20,214)— 
    Accretion of discounts and (premiums)(19)42 3 
    Net change in appreciation (depreciation)5,204 (834)(3,825)
    Net realized gains (losses)(5,408)197 (1,269)
    Transfers in (2)
    — — 10,612 
    Balances as of April 30, 2025$25,163 $70,867 $10,251 
    Net change in appreciation (depreciation) of investments held at April 30, 2025$3,217 $(603)$(3,825)

    (2) Transferred from Level 2 to Level 3 due to a lack of observable market data, resulting from a decrease in market activity for the securities.



    28

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of April 30, 2025:

    Financial AssetFair Value (in thousands)
    Valuation Technique(1)
    Unobservable Inputs(2)
    Range (Weighted Average)(3)
    Impact to Valuation from an Increase in Input
    Leveraged Loans$25,163 Yield AnalysisYield11.7% - 15.0% (13.7%)Decrease
    Discount Margin3.2%Decrease
    EBITDA Multiple3.0x - 14.0x (11.9x) Increase
    Market ComparablesEBITDA Multiple5.0x - 12.5x (7.6x) Increase
    Asset Backed Securities$70,867 Yield AnalysisYield1.0% - 9.9% (7.1%)Decrease
    Discounted Cash FlowsProbability of Default2.0%Decrease
    Constant Prepayment Rate (4)
    20.0%Increase
    Equity & Other Investments$10,251 Market ComparablesLTM EBITDA3.0x - 6.4x (5.7x)Increase
    FWD EBITDA12.5xIncrease
    Black-ScholesRisk Free Rate3.9%Decrease
    Volatility40.0%Increase
    Probability-Weighted Expected Return MethodYield4.0%Decrease
    (1) For the assets that have more than one valuation technique, the Fund may rely on the techniques individually or in aggregate based on a weight ascribed to each one ranging from 0.0%-100.0%. When determining the weighting ascribed to each valuation methodology, the Fund considers, among other factors, the availability of direct market comparables, the applicability of a discounted cash flow analysis and the expected hold period and manner of realization for the investment. These factors can result in different weightings among the investments and in certain instances, may result in up to a 100.0% weighting to a single methodology.
    (2)The significant unobservable inputs used in the fair value measurement of the Fund’s assets and liabilities may include the last twelve months (“LTM”) EBITDA multiple, weighted average cost of capital, discount margin, probability of default, loss severity and constant prepayment rate. In determining certain of these inputs, management evaluates a variety of factors including economic, industry and market trends and developments, market valuations of comparable companies, and company specific developments including potential exit strategies and realization opportunities. Significant increases or decreases in any of these inputs in isolation could result in significantly lower or higher fair value measurement.
    (3)Weighted average amounts are based on the estimated fair values.
    (4)An increase in the constant prepayment rate would decrease the fair value of a security trading above par and increase the fair value of a security trading below par. Weighted average amounts are based on the estimated fair values.
    6.Investment Transactions
    The cost of investments purchased and the proceeds from the sale of investments, other than short-term investments, for the six months ended April 30, 2025 were as follows (in thousands):
    Purchases$555,431 
    Sales$364,716 
    The Fund purchased and sold $0.2 million of U.S. Government securities during the six months ended April 30, 2025.
    7.Commitments and Contingencies
    The Fund may enter into certain credit agreements, of which all or a portion may be unfunded. The Fund will maintain sufficient liquidity to fund these commitments at the borrower’s discretion. As of April 30, 2025, total unfunded commitments on these credit agreements were $0.3 million and the cumulative unrealized losses on these unfunded commitments were less than $0.1 million.




    29

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Under the Fund’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnifications. The Fund’s maximum liability exposure under these arrangements is unknown, as future claims that have not yet occurred may be made against the Fund. However, based on experience, management expects the risk of loss to be remote.
    8.Federal Income Taxes
    The timing and characterization of certain income, capital gains, and return of capital distributions are determined annually in accordance with federal tax regulations, which may differ from GAAP. As a result, the net investment income and net realized losses on investment transactions for a reporting period may differ significantly from distributions during such period. These book to tax differences may be temporary or permanent in nature.

    As of October 31, 2024, the Fund’s most recent fiscal year end, the following permanent differences have been reclassified (to)/from the following accounts (in thousands):

    Accumulated DeficitPaid-in Capital
    $326 $(326)
    The tax character of distributions declared for the six months ended April 30, 2025 and the year ended October 31, 2024 were as follows (in thousands):
    Ordinary IncomeTotal
    April 30, 2025*$23,129 $23,129 
    October 31, 202439,549 39,549 
    *The final tax character of any distribution declared during 2025 will be determined in January 2026 and reported to shareholders on IRS Form 1099-Div in accordance with federal income tax regulations.

    As of October 31, 2024, the components of accumulated losses on a tax basis for the Fund are as follows (in thousands):
    Undistributed Ordinary IncomeNet Unrealized DepreciationOther Temporary DifferencesTotal Accumulated Losses
    $6,930 $(2,219)$(67,107)$(62,396)
    Net capital losses earned may be carried forward indefinitely and must retain the character of the original loss. During the year ended October 31, 2024, the Fund did not utilize any capital loss carry-forwards. As of October 31, 2024, the Fund had non-expiring capital loss carry-forwards of $66.0 million.
    As of October 31, 2024, the total cost of securities for federal income tax purposes and the aggregate gross unrealized appreciation and depreciation for securities held by the Fund are as follows (in thousands):
    Federal Tax Cost
    Aggregate Gross Unrealized Appreciation
    Aggregate Gross Unrealized Depreciation
    Net Unrealized Depreciation
    $568,484 $17,138 $(19,357)$(2,219)



    30

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    9.Credit Facility
    In October 2019, the Fund entered into a credit agreement (the “State Street Credit Facility”) with State Street Bank and Trust Company (“State Street”). The State Street Credit Facility provides for loans to be made in U.S. dollars and certain foreign currencies to an aggregate amount of $160.0 million, with an “accordion” feature that allowed the Fund, under certain circumstances, to increase the size of the facility to a maximum of $225.0 million. On February 7, 2025, the State Street Credit Facility was amended to increase the size of the facility to $250.0 million. The Fund may reduce or terminate the commitments under the State Street Credit Facility with three business days’ notice. State Street is required to provide the Fund with 270 days’ notice prior to terminating the State Street Credit Facility.
    The State Street Credit Facility bears interest on the Secured Overnight Financing Rate and a spread of 0.75% or 0.85%, increasing to 1.00% beginning February 7, 2025. An additional spread adjustment of 0.12%-0.33% is applied to borrowings denominated in the British pound. The Fund also pays a commitment fee on any unused commitment amounts between 0.15% and 0.25%, depending on utilization levels. The State Street Credit Facility contains certain covenants that require the maintenance of ratios throughout the borrowing period. As of April 30, 2025, the Fund was in compliance with the terms of the State Street Credit Facility. The carrying value of the State Street Credit Facility approximates fair value due to variable interest rates that periodically reset to market rates. The fair value was determined using Level 2 inputs in the fair value hierarchy.
    The components of interest expense, average interest rates (i.e., base interest rate in effect plus the spread), and average borrowings for the Fund’s credit facility for the six months ended April 30, 2025 were as follows (in thousands):
    Stated interest expense$3,502 
    Unused commitment fees48 
    Amortization of deferred financing costs5 
    Total interest expense$3,555 
    Weighted average interest rate4.48 %
    Average borrowings$157,646 
    10. Mandatory Redeemable Preferred Shares
    On October 15, 2019, the Fund issued 10-year mandatory redeemable preferred shares (the “MRPS”). The Fund authorized and issued 2.0 million MRPS with a total liquidation value of $50.0 million. The final redemption date of the MRPS is October 31, 2029. The Fund makes quarterly dividend payments on the MRPS at an annual dividend rate of 3.81%. The mandatory redemption feature results in the MRPS being treated as debt of the Fund under GAAP. Consequently, the liquidation preference of the MRPS are recorded as a liability on the Statement of Assets and Liabilities, net of deferred offering costs. The estimated fair value of the MRPS is $46.4 million as of April 30, 2025. This fair value is based on Level 2 inputs under the fair value hierarchy.
    Offering costs incurred in connection with the issuance of the MRPS have been recorded, and are being deferred and amortized through the final redemption date of the MRPS. The amortization of these costs is included in preferred shares interest expense in the Statement of Operations.







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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    11. Shareholder Transactions
    On February 7, 2025, the Fund completed its acquisition of Insight Select Income Fund’s (“INSI”) assets, which qualified as a tax-free reorganization under Section 368 of the Internal Revenue Code. INSI shareholders received shares of the Fund based on the closing net asset values of each fund on February 6, 2025. INSI and the Fund’s net asset value per share were $17.62 and $13.08, respectively, which resulted in an exchange ratio of 1.34709 shares of the Fund issued for each share of INSI. The Fund paid $9.2 million to INSI shareholders that elected to receive cash in lieu of the Fund’s shares. Post transaction, the Fund’s net asset value and shares outstanding increased by $179.5 million and 13.7 million, respectively. The acquisition was accounted for as an asset acquisition and the value of the acquisition was measured based on the fair value of the net assets acquired in accordance with ASC 805-50, Business Combinations-Related Issues. Transaction costs of $0.3 million were capitalized into the cost of the acquired assets. The cost basis of the investments received from INSI was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The acquired assets included $4.1 million of unrealized depreciation on investments.
    12. Segment Reporting
    The Fund operates through a single operating and reporting segment with a principal objective of generating a high level of current income, with a secondary object of capital appreciation. The Fund’s President acts as the Fund’s CODM and is responsible for assessing performance and allocating resources with respect to the Fund. The CODM has concluded that the Fund operates as a single operating segment because the Fund has a single investment strategy, as disclosed in its prospectus, against which the CODM assesses the Fund’s performance. In addition to other metrics, the CODM uses net increase/decrease in net assets resulting from operations as a key metric to assess the Fund’s performance against its benchmark. As the Fund’s investment operations comprise a single reporting segment, the segment assets are the same assets that are reported in the Statement of Assets and Liabilities, and significant segment expenses are the same as those listed on the Statement of Operations.
    32

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    VOTING RESULTS FROM THE MARCH 19, 2025 SHAREHOLDER MEETING
    At the Annual Meeting of Shareholders held on March 19, 2025, shareholders approved the election of Catherine B. Sidamon-Eristoff as a Class II Trustee to the Board of Trustees to serve a three year term expiring in 2028 based on the following results:
    Total Outstanding Shares
    40,870,580 
    Total Shares Voted
    19,621,081 
    For18,971,474 
    Withheld649,607 
    At the Annual Meeting of Shareholders held on March 19, 2025, preferred shareholders approved the election of Lourdes Perez-Berkeley as a Class II Trustee to the Board of Trustees to serve a three year term expiring in 2028 based on the following results:
    Total Outstanding Shares
    2,000,000 
    Total Shares Voted
    2,000,000 
    For2,000,000 
    Withheld0 
    At the Annual Meeting of Shareholders held on March 19, 2025, preferred shareholders approved the election of Catherine B. Sidamon-Eristoff as a Class II Trustee to the Board of Trustees to serve a three year term expiring in 2028 based on the following results:
    Total Outstanding Shares
    2,000,000 
    Total Shares Voted
    2,000,000 
    For2,000,000 
    Withheld0 
    33

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     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    Privacy Notice
    Protection and Security of Your Personal Information
    Kohlberg Kravis Roberts & Co. L.P. (“KKR”) respects our investors’ right to privacy. All financial companies choose how they share personal information. Consumers have the right under U.S. federal law to limit some, but not all, sharing of personal information. U.S. federal law also requires us to inform you how we collect, share and protect your personal information. Investors may also have additional limiting rights under their respective State’s law. This notice is provided by KKR, its affiliates, and funds (“KKR”, “we”, or “us”). Please read this notice carefully to understand what we do, and call us at (212) 750-8300 if you have any questions.
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    •For our marketing purposes: KKR shares personal information for our marketing purposes so that we can offer products and services to you. You cannot limit sharing by KKR for this reason.
    •For joint marketing with other financial companies: KKR does not share personal information for joint marketing with other financial companies.
    •For use by affiliates in providing products and services to you: KKR shares personal information for our affiliates’ use in providing you with products and services that meet your financial services needs. You cannot limit sharing by KKR for this reason.
    34

    Logo1.jpg
     Income Opportunities Fund
    April 30, 2025 (Unaudited)
    •For the everyday business purposes of affiliates: KKR does not share personal information, including information about your credit worthiness, with our affiliates for their everyday business purposes.
    •For use by affiliates to market to you: KKR does not share personal information with affiliates so that they can market to you.
    •For use by non-affiliates to market to you: KKR does not share personal information with non-affiliates so that they can market to you.
    U.S. Federal law gives you the right to limit sharing of your personal information only for use (i) by affiliates everyday business purposes (information about your creditworthiness), (ii) by affiliates to market to you, and (iii) by non-affiliates to market to you. U.S. State laws and individual companies may give you additional rights to limit sharing.
    How We Protect Your Personal Information
    To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
    Definitions
    Affiliates: Companies related by common ownership or control. They can be financial and nonfinancial companies. KKR does not share with our affiliates, except to provide you products and services that meet your financial needs.
    Non-affiliates: Companies not related by common ownership or control. They can be financial and nonfinancial companies. KKR does not share with non-affiliates so they can market to you.
    Joint Marketing: A formal agreement between nonaffiliated financial companies that together market financial products and services to you. KKR does not jointly market.
    35


    (b) Not applicable for semi-annual report.

    Item 2. Code of Ethics.

    Not applicable for semi-annual report.

    Item 3. Audit Committee Financial Expert.

    Not applicable for semi-annual report.

    Item 4. Principal Accountant Fees and Services.

    Not applicable for semi-annual report.

    Item 5. Audit Committee of Listed Registrants.

    Not applicable for semi-annual report.

    Item 6. Investments.

    (a) Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

    (b) Not applicable.

    Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.

    Not applicable to closed-end investment companies.

    Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.

    Not applicable to closed-end investment companies.

    Item 9. Proxy Disclosures for Open-End Management Investment Companies.

    Not applicable to closed-end investment companies.

    Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.

    Not applicable to closed-end investment companies.

    Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.

    Not applicable for semi-annual report.

    Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

    Not applicable for semi-annual report.

    Item 13. Portfolio Managers of Closed-End Management Investment Companies.

    (a)(1) Not applicable for semi-annual report.

    (a)(2) Not applicable for semi-annual report.
    36



    (a)(3) Not applicable for semi-annual report.

    (a)(4) Not applicable for semi-annual report.

    (b) As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR.

    Item 14. Purchases of Equity Securities by Closed‑End Management Investment Company and Affiliated Purchasers.

    No purchases were made during the reporting period by or on behalf of the registrant or any “affiliated purchaser,” as defined in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares or other units of any class of the registrant’s equity securities that is registered by the registrant pursuant to Section 12 of the Exchange Act (15 U.S.C. 781).

    Item 15. Submission of Matters to a Vote of Security Holders.

    There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees since the registrant last provided disclosure in response to this item.

    Item 16. Controls and Procedures.

    (a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report on Form N-CSR, that the design and operation of such procedures are effective to provide reasonable assurance that information required to be disclosed by the investment company on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms.

    (b) There have been no changes in the registrant's internal control over financial reporting during the period covered by this report that materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

    Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies

    The registrant did not engage in securities lending activities during the period reported on this Form N-CSR.

    Item 18. Recovery of Erroneously Awarded Compensation

    (a) Not applicable.

    (b) Not applicable.

    Item 19. Exhibits.

    (a)(1) Not applicable.

    (a)(2) Not applicable for semi-annual report.

    (a)(3) A separate certification for the principal executive officer and the principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

    (b) Certifications pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002 are filed herewith.
    37


    SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


    KKR Income Opportunities Fund

    By /s/ Rudy Pimentel
    Rudy Pimentel, President

    Date June 25, 2025


    Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


    By /s/ Rudy Pimentel
    Rudy Pimentel, President

    Date June 25, 2025


    By /s/ Thomas Murphy
    Thomas Murphy, Treasurer, Chief Accounting
    Officer & Chief Financial Officer

    Date June 25, 2025


    38
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