SCHEDULE: SIT Investment Associates Transitions Reporting Status

SIT Investment Associates and its subsidiary SIT Fixed Income Advisors II, LLC are transitioning back to a Schedule 13G filing for First Trust Mortgage Income Fund, indicating a change in their investment intent.

Summary

• SIT Investment Associates, Inc. and SIT Fixed Income Advisors II, LLC (collectively, the "Reporting Persons") have filed an amendment to their Schedule 13G, marking a transition back to this filing type.
• This filing serves as an exit filing from a Schedule 13D, indicating a change in investment intent regarding the First Trust Mortgage Income Fund.
• As of September 29, 2026, the Reporting Persons no longer hold securities with the purpose or effect of changing or influencing control of the issuer.
• The Reporting Persons collectively beneficially own 2,320,350 shares of common stock, representing 55.1% of the class.
• This ownership is held across various client accounts managed by the Reporting Persons, who are registered investment advisers.
• The Reporting Persons disclaim beneficial ownership of these securities, as they are owned by the client accounts.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive filing, primarily indicating a shift in reporting status rather than significant new operational or financial developments.

Positives

• The transition back to a Schedule 13G suggests a de-escalation of any potential control-related intentions, which can be viewed positively by the market as it implies a more passive investment approach.
• The Reporting Persons continue to hold a significant stake, indicating ongoing confidence in the First Trust Mortgage Income Fund, albeit with a non-controlling intent.

Negatives

• The filing does not provide new financial performance data or strategic updates for the First Trust Mortgage Income Fund itself, focusing solely on the reporting entity's status.
• The significant ownership percentage (55.1%) held by a single entity, even with a disclaimer of beneficial ownership for control purposes, could still be perceived as a concentration risk by some investors.

Risks

• The primary risk highlighted is the potential for misinterpretation of the Reporting Persons' investment intent, although the filing explicitly states a shift away from influencing control.
• While not a direct risk to the issuer, the disclaiming of beneficial ownership by the Reporting Persons could create ambiguity for other shareholders regarding the ultimate control and decision-making power over such a large block of shares.

Future Outlook

The filing does not contain forward-looking statements or guidance related to the First Trust Mortgage Income Fund's future performance. It solely addresses the reporting status of SIT Investment Associates and SIT Fixed Income Advisors II, LLC.

Management Comments

• "As of 9/29/2026 the Reporting Persons no longer hold securities of the Issuer with a purpose or effect of changing or influencing control of the Issuer, or in connection with or as a participant in any transaction having that purpose or effect."
• "Accordingly, the Reporting Persons are transitioning back to a Schedule 13G pursuant to Rule 13d-1(c) of the Exchange Act in accordance with Rule 13d-1(h) of the Exchange Act, and this Amendment No. 15 will serve as the Reporting Persons' exit Schedule 13D."
• "SIA and SFI provide investment management services to client accounts ("Accounts")."
• "In their roles as investment advisers SIA and SFI possess shared voting and investment power over securities of the Issuer described in this schedule 13G owned by the Accounts and may be deemed to be the beneficial owner of such shares of the Issuer owned by the Accounts."
• "All securities reported in this schedule 13G are owned by the Accounts."
• "Pursuant to Rule 13d-4 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), SIA and SFI disclaim beneficial ownership of such securities."

Industry Context

StockSavvy.ai notes that this filing reflects a common regulatory maneuver where investment managers, after a period of potentially more active engagement (indicated by the Schedule 13D filing), revert to a passive reporting status (Schedule 13G) when their investment strategy shifts away from seeking control. This is typical in asset management, especially for income-focused funds.

Comparison to Industry Standards

• The filing does not provide performance data for First Trust Mortgage Income Fund, making direct comparison to industry standards for financial metrics impossible.
• The transition from a Schedule 13D to a Schedule 13G is a standard procedural step for investment managers whose intent shifts from active influence to passive investment, aligning with industry practices for managing client assets.

Stakeholder Impact

• Shareholders: The change in reporting status may reduce perceived risk related to activist control attempts, potentially stabilizing investor sentiment. However, the significant ownership concentration remains a factor.
• Creditors: No direct impact is indicated as the filing pertains to equity ownership and not debt.
• Employees: No direct impact is indicated.
• Suppliers/Customers: No direct impact is indicated.

Next Steps

• The Reporting Persons will continue to manage client accounts holding First Trust Mortgage Income Fund securities under their investment advisory roles.
• Future filings will likely continue to be Schedule 13G amendments if their beneficial ownership percentage remains above 5% and their investment intent remains passive.

Key Dates

Keywords

First Trust Mortgage Income Fund, Schedule 13G, Schedule 13D, SIT Investment Associates, SIT Fixed Income Advisors II, Beneficial Ownership, Investment Intent, SEC Filing