SCHEDULE: First Trust Entities Report 15.61% Stake in BNY Mellon Fund

First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation jointly report a 15.61% beneficial ownership stake in BNY Mellon High Yield Strategies Fund.

Summary

• First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation have jointly filed an Amendment No. 16 to Schedule 13G.
• The reporting group beneficially owns an aggregate of 11,351,166 shares of Common stock in BNY Mellon High Yield Strategies Fund.
• This aggregate amount represents 15.61% of the class of securities.
• The reporting persons hold shared dispositive power over all 11,351,166 shares, but no sole or shared voting power, and no sole dispositive power.
• 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. sponsors unit investment trusts (UITs) that hold shares of the issuer.
• First Trust Advisors L.P. acts as portfolio supervisor for these UITs and as investment advisor/sub-advisor for other registered investment companies, pooled investment vehicles, and separately managed accounts holding issuer shares.
• The reporting persons explicitly disclaim beneficial ownership of the shares identified in this filing, as they are held on behalf of clients in various investment vehicles.

Sentiment

Score: 5

Explanation: The filing is a routine regulatory disclosure of passive beneficial ownership and does not contain information that would significantly alter the perceived value or risk of the issuer, thus maintaining a neutral sentiment.

Positives

• The significant institutional holding by First Trust entities, even with disclaimed beneficial ownership, indicates broad market interest and liquidity for BNY Mellon High Yield Strategies Fund shares.
• The filing reflects the ongoing business operations of First Trust Portfolios L.P. and First Trust Advisors L.P. in managing substantial investment vehicles.

Negatives

• The reporting persons explicitly disclaim beneficial ownership, meaning they do not have direct economic interest or voting control over the shares, which limits their direct influence on the issuer.
• The absence of sole or shared voting power means the reporting entities do not directly influence corporate governance decisions for the issuer.

Future Outlook

The filing is a routine disclosure of passive beneficial ownership and does not contain any forward-looking statements or guidance regarding the issuer's future performance or strategy.

Industry Context

This filing reflects standard institutional investment activity where asset managers report significant holdings in underlying funds on behalf of their clients, often through structured products like unit investment trusts. It is a common practice in the asset management industry for compliance with SEC regulations.

Related Party Transactions

• The Charger Corporation serves as the General Partner for both First Trust Portfolios L.P. and First Trust Advisors L.P., establishing a control relationship among the reporting entities.
• First Trust Portfolios L.P. sponsors unit investment trusts (UITs) that hold shares of the issuer, while First Trust Advisors L.P. acts as portfolio supervisor for these UITs and as investment advisor/sub-advisor for other investment vehicles holding issuer shares.

Stakeholder Impact

• Shareholders: Provides transparency regarding significant institutional holdings, which may contribute to market liquidity and stability.
• Management: Awareness of a large, passive institutional holder, though without direct voting control from the reporting entities.

Key Dates

Keywords

BNY Mellon High Yield Strategies Fund, First Trust Portfolios, First Trust Advisors, The Charger Corporation, Schedule 13G, Beneficial Ownership, High Yield Fund, Investment Management, Institutional Investor, Unit Investment Trust