SCHEDULE: Karpus Management Takes 22.09% Stake in Carlyle Credit Fund

Karpus Management, an investment adviser, has disclosed a significant 22.09% beneficial ownership stake in the Preferred shares of Carlyle Credit Income Fund.

Summary

• Karpus Management, Inc. (d/b/a Karpus Investment Management), a registered investment adviser, has reported beneficial ownership of 265,100.00 Preferred shares of Carlyle Credit Income Fund.
• This ownership represents 22.09% of the class of Preferred securities.
• Karpus Management exercises sole voting and sole dispositive power over all 265,100.00 shares.
• The shares were acquired and are held in the ordinary course of business, not for the purpose of changing or influencing control of the issuer.
• Karpus is controlled by City of London Investment Group plc, but due to established informational barriers, beneficial ownership is not attributed to CLIG.

Sentiment

Score: 7

Explanation: The filing indicates a significant institutional investment in the company's preferred shares, which is generally a positive signal of confidence from a sophisticated investor. The investment is stated to be in the ordinary course of business and not for control purposes, suggesting a stable, long-term holding.

Positives

• A significant institutional investor, Karpus Management, has taken a substantial 22.09% stake in the Preferred shares, indicating confidence in the asset class or issuer.
• Karpus Management, as a registered investment adviser, holds the shares in the ordinary course of business, suggesting a long-term investment perspective rather than an activist stance.

Negatives

• No specific negative information is disclosed in this Schedule 13G filing.

Risks

• The filing itself does not detail specific risks related to the Carlyle Credit Income Fund. It only certifies that Karpus Management's acquisition and holding of shares were in the ordinary course of business and not for control purposes.

Future Outlook

This filing is a disclosure of current beneficial ownership and does not contain forward-looking statements or guidance regarding the issuer's future performance or outlook.

Management Comments

• 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, other than activities solely in connection with a nomination under §§ 240.14a-11.

Industry Context

The disclosure of a significant stake by an investment adviser like Karpus Management in a credit income fund's preferred shares suggests a strategic allocation towards income-generating assets, potentially reflecting a broader industry trend of institutional investors seeking stable returns in fixed income or preferred equity markets. Such a substantial holding can be viewed as a vote of confidence in the fund's management and underlying credit portfolio.

Comparison to Industry Standards

• NA

Stakeholder Impact

• Shareholders: The significant stake by an institutional investor could be perceived positively, potentially signaling stability and confidence in the fund's preferred shares.
• Management: The filing indicates that the investment is not for the purpose of changing or influencing control, which suggests a non-activist, supportive shareholder.

Next Steps

• Karpus Management, Inc. will continue to monitor its beneficial ownership in Carlyle Credit Income Fund and file amendments to Schedule 13G as required by SEC regulations if its ownership percentage changes significantly.

Key Dates

Recommendation

The disclosure of a substantial 22.09% stake by a reputable investment adviser like Karpus Management in Carlyle Credit Income Fund's Preferred shares is a positive indicator of institutional confidence. However, as a Schedule 13G, it primarily reports ownership and does not provide new financial performance data or strategic updates from the issuer. While the large stake is a good sign, it doesn't inherently warrant a 'buy' without further analysis of the fund's underlying financials and market conditions. Therefore, a 'hold' recommendation is appropriate for existing investors, acknowledging the institutional backing while awaiting more comprehensive performance data.

Keywords

Karpus Management, Carlyle Credit Income Fund, Preferred shares, Schedule 13G, beneficial ownership, investment adviser, institutional investor, SEC filing, equity stake