SCHEDULE: Sit Entities Maintain Majority Stake in First Trust Mortgage Income Fund

Sit Investment Associates and Sit Fixed Income Advisors continue to hold a 53.4% beneficial ownership in First Trust Mortgage Income Fund, as detailed in their latest Schedule 13D amendment.

Summary

• Sit Investment Associates, Inc. and Sit Fixed Income Advisors II, LLC (collectively "Sit Entities") reported a beneficial ownership of 2,252,145 shares of First Trust Mortgage Income Fund's Common Stock.
• This ownership represents 53.4% of the 4,213,115 shares outstanding as of April 30, 2025.
• This filing is the 30th amendment to their initial Schedule 13D, originally filed on March 18, 2015.
• Over the last 60 days, Sit Entities engaged in both selling and buying activities, resulting in a net decrease of 15,120 shares.
• A significant purchase of 81,615 shares occurred on September 19, 2025, at $12.28 per share, which is the event date for this filing.

Sentiment

Score: 6

Explanation: The filing indicates a stable, significant institutional ownership position, with active portfolio management reflected in recent transactions. While there was a net decrease in shares over the 60-day period, a substantial purchase on the event date suggests continued confidence and active management rather than a negative outlook.

Positives

• Sit Entities maintain a significant majority beneficial ownership of 53.4% in First Trust Mortgage Income Fund, indicating continued strategic interest.
• A substantial purchase of 81,615 shares was made on September 19, 2025, at $12.28 per share, coinciding with the event date of this filing.

Negatives

• Over the last 60 days, Sit Entities recorded a net decrease of 15,120 shares, with total sales of 97,375 shares outweighing total purchases of 82,255 shares.
• Selling transactions occurred at prices ranging from $12.18 to $12.27 per share, while buying transactions were at $12.28 and $12.35 per share.

Risks

• No specific new risks were identified in this amendment beyond those inherent in holding a significant equity position in a publicly traded fund.

Future Outlook

This Schedule 13D amendment does not provide specific forward-looking statements or guidance regarding the Issuer's future performance or strategic direction. It primarily updates beneficial ownership information and recent trading activity by the reporting persons.

Management Comments

• Roger J. Sit, Chairman & CEO of Sit Investment Associates, Inc. and Sit Fixed Income Advisors II, LLC, certified that the information set forth in this statement is true, complete, and correct to the best of his knowledge and belief.

Industry Context

This filing reflects the ongoing portfolio management activities of a significant institutional investor in a closed-end fund. Large institutional ownership, such as the 53.4% stake held by Sit Entities, is common in the investment fund industry. The active trading, including both sales and purchases, suggests rebalancing or tactical adjustments within their client accounts rather than a fundamental shift in the investment thesis for the First Trust Mortgage Income Fund.

Comparison to Industry Standards

• NA

Stakeholder Impact

• Shareholders benefit from the transparency provided by this filing regarding the significant ownership stake and trading activities of a major institutional investor.

Next Steps

• NA

Key Dates

Recommendation

Sit Entities maintain a substantial majority stake, indicating continued confidence in the investment. While there was net selling activity over the 60-day period, a significant buy occurred on the event date, suggesting active portfolio management rather than a fundamental shift in outlook. This filing primarily updates ownership percentages and trading activity, not fundamental performance, thus a 'hold' is appropriate for existing investors.

Keywords

First Trust Mortgage Income Fund, Sit Investment Associates, Sit Fixed Income Advisors, Schedule 13D, Beneficial Ownership, Common Stock, Mortgage Income Fund, Investment Management