SCHEDULE: Sit Entities Hold 54.5% of First Trust Mortgage Income Fund

Sit Investment Associates and Sit Fixed Income Advisors continue to hold a 54.5% beneficial ownership in First Trust Mortgage Income Fund, with recent trading activity.

Summary

• Sit Investment Associates, Inc. and Sit Fixed Income Advisors II, LLC (Sit Entities) collectively beneficially own 2,295,999 shares of First Trust Mortgage Income Fund Common Stock.
• This represents 54.5% of the Issuer's 4,213,115 outstanding shares as of April 30, 2025.
• The Sit Entities have shared voting and dispositive power over these shares.
• Recent transactions in the last 60 days include multiple purchases and one significant sale of 101,000 shares on December 18, 2025, at $11.85 per share.

Sentiment

Score: 6

Explanation: The filing indicates continued strong institutional ownership, which is generally positive. However, the significant sale transaction, even if offset by purchases, introduces a slight element of rebalancing or reduced conviction, preventing a higher score. The overall sentiment is neutral to slightly positive due to the maintained majority stake.

Positives

• Sit Entities maintain a significant majority stake (54.5%), indicating continued conviction in the investment.
• Despite a large sale, there were numerous smaller purchases, suggesting active management of client accounts.

Negatives

• A substantial sale of 101,000 shares on December 18, 2025, at $11.85 per share, could indicate a partial reduction in exposure or rebalancing.

Future Outlook

The filing does not provide any forward-looking statements or guidance regarding the Issuer's future performance or strategy.

Management Comments

• No specific management comments or notable quotes from the Issuer's management are provided in this filing. Roger J. Sit, Chairman & CEO of the reporting entities, signed the statement.

Industry Context

This Schedule 13D amendment primarily details a change in beneficial ownership percentage and recent trading activity by a significant institutional investor in a mortgage income fund. It does not provide broader industry context or trends, focusing solely on the reporting entities' stake in First Trust Mortgage Income Fund.

Comparison to Industry Standards

• This filing is a disclosure of beneficial ownership and trading activity by an institutional investor, not a performance report. Therefore, a comparison to industry standards for company performance or project results is not applicable.

Stakeholder Impact

• Shareholders: The continued majority ownership by Sit Entities provides stability and a clear institutional presence, potentially influencing market perception and liquidity.
• Clients of Sit Entities: The transactions reflect the ongoing management of client portfolios, with clients having the right to receive dividends and proceeds from sales.

Next Steps

• The filing does not explicitly mention any future actions, events, or milestones for the Issuer or the reporting entities beyond the ongoing management of client accounts.

Key Dates

Recommendation

The filing primarily details an institutional investor's beneficial ownership and recent trading activity. While Sit Entities maintain a substantial majority stake (54.5%), indicating long-term conviction, the recent large sale of 101,000 shares suggests active portfolio rebalancing. Without additional information on the Issuer's financial performance or strategic direction, a 'hold' recommendation is appropriate, acknowledging the strong institutional backing while noting the recent selling activity.

Keywords

First Trust Mortgage Income Fund, Sit Investment Associates, Sit Fixed Income Advisors, Schedule 13D, beneficial ownership, common stock, investment management, mortgage income fund, institutional ownership