SCHEDULE: Morgan Stanley Amends 13% Stake in First Trust Fund

Morgan Stanley and its subsidiary disclose a 13.0% beneficial ownership stake in First Trust Intermediate Duration Preferred & Income Fund.

Summary

• Morgan Stanley and its wholly-owned subsidiary, Morgan Stanley Smith Barney LLC, have filed an Amendment No. 14 to Schedule 13G regarding their beneficial ownership in First Trust Intermediate Duration Preferred & Income Fund.
• Morgan Stanley beneficially owns an aggregate of 7,887,037 shares of Common Stock, representing 13.0% of the class.
• Morgan Stanley Smith Barney LLC beneficially owns an aggregate of 7,870,830 shares, representing 12.9% of the class.
• The filing indicates that Morgan Stanley has shared voting power over 16,208 shares and shared dispositive power over 7,887,037 shares.
• Morgan Stanley Smith Barney LLC has shared voting power over 1 share and shared dispositive power over 7,870,830 shares.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of the issuer.

Sentiment

Score: 6

Explanation: The filing is a routine disclosure of beneficial ownership by a major financial institution. The significant stake (13.0%) could be seen as a positive signal of institutional confidence, but it's a factual report rather than a performance update or strategic announcement.

Positives

• Significant institutional ownership by Morgan Stanley, a major financial institution, potentially signaling confidence in the fund's strategy or underlying assets.
• The filing explicitly states that the securities were acquired and are held in the ordinary course of business, not for the purpose of changing or influencing control of the issuer.

Risks

• No specific risks related to the issuer's operations or financial health are mentioned in this Schedule 13G filing, as it primarily serves as a compliance disclosure of beneficial ownership.

Future Outlook

This Schedule 13G filing does not contain forward-looking statements or guidance regarding the issuer's future performance or outlook, as it is a disclosure of beneficial ownership.

Industry Context

This filing reflects a significant beneficial ownership stake by a major global financial services firm, Morgan Stanley, in an investment fund. Such institutional holdings are common in the asset management industry and can be viewed as a vote of confidence in the fund's strategy or underlying assets.

Related Party Transactions

• Morgan Stanley Smith Barney LLC, a wholly-owned subsidiary of Morgan Stanley, holds a significant portion of the reported shares, indicating an intra-company beneficial ownership structure.

Stakeholder Impact

• Shareholders may view the significant institutional ownership by Morgan Stanley as a positive indicator of the fund's stability and investment appeal.
• The filing confirms that the shares are held in the ordinary course of business, not for the purpose of changing or influencing control, which may reassure existing management and other stakeholders.

Key Dates

Recommendation

This Schedule 13G filing is a disclosure of beneficial ownership by Morgan Stanley and its subsidiary, not a performance report or strategic announcement from the issuer. While a 13.0% stake by a major institution like Morgan Stanley can be seen as a positive signal of confidence, the filing itself does not provide new fundamental information about the issuer's operations or financial health to warrant a change in investment recommendation. Investors should 'hold' and consider this information in the broader context of the fund's performance and their own investment strategy.

Keywords

Morgan Stanley, First Trust Intermediate Duration Preferred & Income Fund, Schedule 13G, Beneficial Ownership, Institutional Investor, Common Stock, Preferred & Income Fund, Investment Fund