SCHEDULE: Morgan Stanley Cuts First Trust Fund II Stake Below 5%

Morgan Stanley and its subsidiary Parametric Portfolio Associates LLC have reduced their beneficial ownership in First Trust Senior Floating Rate Income Fund II to 4.1%, falling below the 5% reporting threshold.

Summary

• Morgan Stanley and Parametric Portfolio Associates LLC have ceased to be beneficial owners of more than five percent of the Common Shares of Beneficial Interest of FIRST TRUST SENIOR FLOATING RATE INCOME FUND II.
• Aggregate beneficial ownership now stands at 1,061,383 shares, representing 4.1% of the class.
• The reporting persons hold 0.00 sole voting power, 131,582.00 shared voting power, 0.00 sole dispositive power, and 1,061,383.00 shared dispositive power.
• Parametric Portfolio Associates LLC is identified as a wholly-owned subsidiary of Morgan Stanley.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, representing a routine disclosure of a passive institutional stake reduction below the reporting threshold, without implying a significant positive or negative outlook for the issuer.

Future Outlook

This filing does not contain any forward-looking statements or guidance regarding the issuer's future performance or strategic direction.

Industry Context

StockSavvy.ai notes that a reduction in institutional ownership below the 5% threshold, as disclosed in a Schedule 13G amendment, typically reflects a portfolio rebalancing decision or a shift in investment strategy by a passive investor rather than a direct commentary on the issuer's fundamental prospects. Such changes are common in the asset management industry.

Related Party Transactions

• Parametric Portfolio Associates LLC is a wholly-owned subsidiary of Morgan Stanley, and their beneficial ownership is reported jointly.

Stakeholder Impact

• Shareholders of First Trust Senior Floating Rate Income Fund II will note the reduction in institutional ownership by Morgan Stanley and its subsidiary, which may influence perceptions of institutional interest in the fund.

Key Dates

Recommendation

The reduction in beneficial ownership by Morgan Stanley and Parametric Portfolio Associates LLC below the 5% threshold is a routine disclosure for passive investors. It does not provide new fundamental information about First Trust Senior Floating Rate Income Fund II that would warrant a change in investment recommendation. The event is likely a portfolio management decision rather than a reflection of the issuer's intrinsic value or future performance.

Keywords

First Trust Senior Floating Rate Income Fund II, Morgan Stanley, Parametric Portfolio Associates LLC, Schedule 13G, beneficial ownership, stake reduction, institutional ownership, floating rate income fund