SCHEDULE: First Trust Discloses 16% Stake in Liberty All-Star Growth Fund

First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation have jointly filed a Schedule 13G, reporting beneficial ownership of 16.00% of Liberty All-Star Growth Fund, Inc.'s common stock.

Summary

• First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation have filed a joint Schedule 13G, indicating their beneficial ownership of 10,125,503 shares of Liberty All-Star Growth Fund, Inc. common stock.
• This represents 16.00% of the class of securities.
• The filing entities are organized in Illinois.
• The Charger Corporation acts as the General Partner for both First Trust Portfolios L.P. and First Trust Advisors L.P.
• First Trust Portfolios L.P. sponsors unit investment trusts that hold shares of the issuer.
• First Trust Advisors L.P. acts as a portfolio supervisor for these unit investment trusts.
• None of the reporting entities have sole voting power or sole dispositive power over the shares.
• The reporting entities disclaim beneficial ownership of the shares held by the unit investment trusts, as these shares are voted by the trustee.
• The filing is made as of March 31, 2026, with the report signed on April 14, 2026.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this filing as neutral; it's a standard disclosure of a significant passive ownership stake without indicating new investment activity or strategic shifts.

Positives

• Significant ownership stake of 16.00% by a major financial entity (First Trust) in Liberty All-Star Growth Fund, Inc. could indicate confidence in the fund's strategy or assets.
• The joint filing agreement demonstrates a coordinated approach to reporting ownership, suggesting a structured and compliant approach to their investment.

Negatives

• The reporting entities disclaim beneficial ownership of the shares held by the unit investment trusts, indicating a lack of direct control over voting or disposition of these shares.
• No individual unit investment trust sponsored by First Trust Portfolios L.P. holds more than 3% of any registered investment company issuer's shares, suggesting a diversified approach across multiple trusts rather than a concentrated holding in one entity.

Risks

• The disclaimer of beneficial ownership and voting power by the reporting entities introduces a layer of complexity regarding actual control over the shares.
• Potential for future changes in the voting arrangements or investment strategies of the unit investment trusts could impact the fund.

Future Outlook

The filing does not contain specific forward-looking statements or guidance from the reporting entities regarding future actions or investment strategies concerning Liberty All-Star Growth Fund, Inc.

Management Comments

• "First Trust Portfolios L.P. acts as sponsor of certain unit investment trusts which hold shares of the issuer."
• "First Trust Advisors L.P., an affiliate of First Trust Portfolios L.P., acts as portfolio supervisor of the unit investment trusts sponsored by First Trust Portfolios L.P., certain of which hold shares of the issuer."
• "Neither First Trust Portfolios L.P., First Trust Advisors L.P. nor The Charger Corporation have the power to vote the shares of the issuer held by these unit investment trusts sponsored by First Trust Portfolios L.P."
• "These shares are voted by the trustee of such unit investment trusts so as to insure that the shares are ordinarily voted as closely as possible in the same manner and in the same general proportion as are the shares held by owners other than such unit investment trusts."
• "Each of First Trust Portfolios L.P., First Trust Advisors L.P. and The Charger Corporation disclaims beneficial ownership of the shares of the issuer identified in this filing."

Industry Context

StockSavvy.ai notes that this Schedule 13G filing by First Trust entities indicates a significant passive investment in Liberty All-Star Growth Fund, Inc. Such filings are common for large asset managers who hold substantial stakes in publicly traded funds, often through various pooled investment vehicles.

Related Party Transactions

• The Charger Corporation is the General Partner of both First Trust Portfolios L.P. and First Trust Advisors L.P., indicating a related party relationship.

Stakeholder Impact

• Shareholders of Liberty All-Star Growth Fund, Inc. may see the significant stake by First Trust as a sign of stability or potential influence, depending on future actions.
• Investors in First Trust's unit investment trusts are indirectly affected by the fund's performance, as these trusts hold shares of the issuer.

Next Steps

• Continued monitoring of First Trust's ownership levels in Liberty All-Star Growth Fund, Inc.
• Review of future amendments to this Schedule 13G filing for any changes in ownership or reporting status.

Key Dates

Keywords

Schedule 13G, Liberty All-Star Growth Fund, First Trust Portfolios L.P., First Trust Advisors L.P., The Charger Corporation, Beneficial Ownership, Investment Company, Unit Investment Trust, SEC Filing, Common Stock