SCHEDULE: First Trust Entities Report 22.74% Ownership Stake in Credit Suisse High Yield Bond Fund

First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation jointly report beneficial ownership of 23,554,870 shares, representing 22.74% of the Credit Suisse High Yield Bond Fund.

Summary

• First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation have jointly filed a Schedule 13G, disclosing their ownership in the Credit Suisse High Yield Bond Fund.
• The filing indicates a total beneficial ownership of 23,554,870 shares, which represents 22.74% of the fund's outstanding common stock.
• The shares are held through various unit investment trusts, registered investment companies, pooled investment vehicles, and separately managed accounts.
• While the entities have shared dispositive power over the shares, they do not have voting power, as the shares are voted by the trustees of the unit investment trusts.
• The Charger Corporation is the General Partner of both First Trust Portfolios L.P. and First Trust Advisors L.P.

Sentiment

Score: 7

Explanation: The document is a standard regulatory filing indicating a significant ownership stake. It is neutral in tone and does not suggest any positive or negative implications beyond the ownership disclosure.

Positives

• The filing indicates a significant ownership stake by First Trust entities in the Credit Suisse High Yield Bond Fund.
• The structure of the investment through various vehicles suggests a diversified approach.

Negatives

• The reporting entities do not have voting power over the shares, which could limit their influence on the fund's management.

Risks

• The lack of voting power could be a risk if the entities wish to influence the fund's direction.
• The complex structure of holdings across various investment vehicles could pose challenges in managing the investment.

Management Comments

• The filing is jointly made by The Charger Corporation, First Trust Portfolios L.P., and First Trust Advisors L.P. pursuant to Rule 13d-1(k)(1).
• 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.

Industry Context

This filing is a routine disclosure of significant ownership in a publicly traded fund, which is common in the investment management industry. It reflects the holdings of a large investment firm in a specific fund.

Comparison to Industry Standards

• The ownership structure, with shares held across various investment vehicles, is typical for large asset managers like First Trust.
• The disclosure of shared dispositive power without voting power is also a common arrangement when shares are held through unit investment trusts.
• Other large investment firms such as BlackRock or Vanguard would also file similar disclosures when their ownership in a fund exceeds 5%.

Stakeholder Impact

• The disclosure provides transparency to shareholders of the Credit Suisse High Yield Bond Fund regarding the significant ownership by First Trust entities.
• The filing does not directly impact employees, customers, suppliers, or creditors of the fund.

Key Dates

Keywords

Schedule 13G, beneficial ownership, First Trust Portfolios, First Trust Advisors, The Charger Corporation, Credit Suisse High Yield Bond Fund, unit investment trusts, investment advisor, shared dispositive power