SCHEDULE: First Trust Discloses 10.49% Stake in abrdn Income Credit Strategies Fund

First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation have jointly filed a Schedule 13G, reporting beneficial ownership of 10.49% of abrdn Income Credit Strategies Fund's common stock as of March 31, 2026.

Summary

• First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation have collectively acquired a significant stake in the abrdn Income Credit Strategies Fund.
• As of March 31, 2026, the reporting entities beneficially own 13,160,660 shares of the fund's common stock.
• This ownership represents 10.49% of the total class of securities.
• The filing is an amendment (Amendment No. 1) to a previous Schedule 13G filing.
• The Charger Corporation acts as the General Partner for both First Trust Portfolios L.P. and First Trust Advisors L.P.
• First Trust Portfolios L.P. sponsors unit investment trusts that hold shares of the issuer.
• First Trust Advisors L.P. acts as a portfolio supervisor for these unit investment trusts.
• No individual unit investment trust sponsored by First Trust Portfolios L.P. holds more than 3% of any registered investment company issuer's shares.
• The reporting entities disclaim beneficial ownership of the shares, as voting power resides with the trustees of the unit investment trusts.
• The voting of shares held by these trusts is managed to align with the voting of shares held by other owners.
• The filing confirms that the securities were acquired and are held in the ordinary course of business and not for the purpose of influencing control of the issuer.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this filing as neutral. It reports a significant ownership stake but clarifies that the reporting entities disclaim direct voting control, indicating a passive investment rather than an active strategic move.

Positives

• Significant ownership stake (10.49%) established in abrdn Income Credit Strategies Fund by First Trust entities.
• Joint filing indicates a coordinated investment strategy.
• Confirmation that the investment is in the ordinary course of business, suggesting a passive investment approach rather than an attempt to gain control.

Negatives

• The reporting entities disclaim beneficial ownership, indicating a lack of direct voting or dispositive power over the shares held by the unit investment trusts.
• The voting of shares is delegated to trustees, which may not always align with the direct interests of the reporting entities.

Risks

• Potential for future changes in voting arrangements or investment strategies of the unit investment trusts.
• Market volatility affecting the value of the abrdn Income Credit Strategies Fund's common stock.
• Regulatory changes impacting investment company holdings or reporting requirements.

Future Outlook

The filing does not contain specific forward-looking statements or guidance from management regarding future performance or strategy. It primarily reports on current ownership status.

Management Comments

• "The Charger Corporation is the General Partner of both First Trust Portfolios L.P. and First Trust Advisors L.P."
• "First Trust Portfolios L.P. acts as sponsor of certain unit investment trusts which hold shares of the issuer."
• "First Trust Advisors L.P., an affiliate of First Trust Portfolios L.P., acts as portfolio supervisor of the unit investment trusts sponsored by First Trust Portfolios L.P., certain of which hold shares of the issuer."
• "Neither First Trust Portfolios L.P., First Trust Advisors L.P. nor The Charger Corporation have the power to vote the shares of the issuer held by these unit investment trusts sponsored by First Trust Portfolios L.P."
• "These shares are voted by the trustee of such unit investment trusts so as to insure that the shares are ordinarily voted as closely as possible in the same manner and in the same general proportion as are the shares held by owners other than such unit investment trusts."
• "Each of First Trust Portfolios L.P., First Trust Advisors L.P. and The Charger Corporation disclaims beneficial ownership of the shares of the issuer identified in this filing."
• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect..."

Industry Context

StockSavvy.ai notes that this Schedule 13G filing by First Trust entities indicates a significant passive investment in the abrdn Income Credit Strategies Fund. Such filings are common for large asset managers accumulating stakes in publicly traded funds, often through various pooled investment vehicles like unit investment trusts.

Related Party Transactions

• The Charger Corporation is the General Partner of First Trust Portfolios L.P. and First Trust Advisors L.P., indicating a related party relationship.

Stakeholder Impact

• Shareholders of abrdn Income Credit Strategies Fund: The significant stake held by First Trust may influence fund strategy or governance over time, although direct voting control is disclaimed.
• Investors in First Trust's Unit Investment Trusts: The investment strategy of these trusts is managed by First Trust Advisors L.P., with voting delegated to trustees.
• Competitors: The filing does not directly impact competitors but reflects the broader landscape of institutional investment in credit strategies funds.

Next Steps

• Continued monitoring of ownership changes by First Trust entities.
• Observation of the voting patterns of the unit investment trusts' shares.
• Tracking the performance of the abrdn Income Credit Strategies Fund.

Key Dates

Keywords

Schedule 13G, abrdn Income Credit Strategies Fund, First Trust Portfolios L.P., First Trust Advisors L.P., The Charger Corporation, beneficial ownership, investment company, unit investment trusts, common stock, SEC filing, ownership stake