SCHEDULE: Sit Entities Update 51.5% Stake in First Trust Mortgage Fund

Sit Investment Associates and Sit Fixed Income Advisors II have filed an Amendment No. 29 to Schedule 13D, disclosing a 51.5% beneficial ownership in First Trust Mortgage Income Fund following recent transactions.

Summary

• This document is Amendment No. 29 to the Schedule 13D filing for First Trust Mortgage Income Fund.
• Sit Investment Associates, Inc. and Sit Fixed Income Advisors II, LLC are the reporting persons.
• The reporting persons collectively beneficially own 2,170,530 shares of Common Stock, representing 51.5% of the Issuer's outstanding shares.
• The percentage of ownership is based on 4,213,115 shares outstanding as of April 30, 2025, as reported in the Issuer's Form N-CSRS.
• Sit Entities have shared voting and dispositive power over these shares.
• Transactions in the last 60 days include multiple sell orders and one buy order, with prices ranging from $12.18 to $12.35 per share.

Sentiment

Score: 5

Explanation: The filing reports a significant beneficial ownership stake (51.5%) maintained by the reporting persons, indicating continued interest. However, recent selling activity, though not massive relative to the total stake, introduces a slightly cautious note, leading to a neutral to slightly cautious sentiment.

Positives

• The reporting persons, Sit Investment Associates, Inc. and Sit Fixed Income Advisors II, LLC, collectively maintain a significant beneficial ownership of 51.5% in First Trust Mortgage Income Fund, indicating a substantial, controlling interest.

Negatives

• Sit Entities engaged in multiple sell transactions totaling 97,375 shares between August 12, 2025, and September 18, 2025, potentially indicating a reduction in their exposure or a portfolio rebalancing.

Risks

• No specific risks related to the Issuer's operations or financial health are detailed in this beneficial ownership filing.

Future Outlook

This Schedule 13D filing primarily reports changes in beneficial ownership and does not contain explicit forward-looking statements or guidance regarding the Issuer's future performance or strategic direction.

Management Comments

• No direct quotes or paraphrased statements from company management regarding strategy or outlook are included in this filing.

Industry Context

This filing reflects an institutional investor's portfolio management decisions regarding a mortgage income fund. It does not provide broader industry trends or competitive analysis.

Comparison to Industry Standards

• This filing is a disclosure of beneficial ownership and does not contain information suitable for comparison to industry-specific performance benchmarks or competitor results.

Stakeholder Impact

• Shareholders may interpret the recent selling activity by a major beneficial owner as a signal, though the continued majority stake suggests ongoing commitment.

Next Steps

• No specific future actions, events, or milestones are mentioned in this filing.

Key Dates

Recommendation

The filing primarily details changes in beneficial ownership by a significant institutional investor. While there has been recent selling activity, the reporting persons still maintain a substantial 51.5% stake in the fund. This suggests a continued, albeit adjusted, commitment. Without further information on the fund's underlying performance or the investor's specific rationale for the transactions, a 'hold' recommendation is appropriate for existing investors, as the filing does not present a clear catalyst for a strong buy or sell decision.

Keywords

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