SCHEDULE: First Trust Entities Disclose 12.81% Stake in Liberty All-Star Growth Fund

First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation have jointly disclosed a 12.81% beneficial ownership stake, totaling 7,939,775 common shares, in Liberty All-Star Growth Fund, Inc.

Summary

• First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation jointly reported beneficial ownership of 7,939,775 common shares of Liberty All-Star Growth Fund, Inc.
• This represents 12.81% of the issuer's common stock.
• The reporting persons hold shared dispositive power over all 7,939,775 shares but no sole or shared voting power.
• The shares are primarily held by unit investment trusts sponsored by First Trust Portfolios L.P., with First Trust Advisors L.P. serving as portfolio supervisor.
• The reporting persons disclaim beneficial ownership of the shares, stating they were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 5

Explanation: The document is a factual disclosure of beneficial ownership, which is neutral in sentiment. It indicates a significant, passive investment by a reputable firm, which could be seen positively, but the document itself is purely informational without explicit positive or negative framing.

Positives

• The disclosure indicates a significant institutional investment in Liberty All-Star Growth Fund, Inc., potentially signaling confidence from First Trust entities.
• The shares are held in the ordinary course of business, not for control purposes, suggesting a passive investment strategy.

Negatives

• The filing does not present any explicit negative information regarding the issuer or the investment.

Risks

• The reporting persons disclaim beneficial ownership, which could imply a lack of direct control or influence over the investment's performance or voting decisions, as voting power resides with the trustees of the unit investment trusts.
• The investment is spread across various unit investment trusts, and no single trust holds more than 3% of the issuer's shares, which might dilute the collective influence of the First Trust entities.

Future Outlook

NA

Management Comments

• The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11.
• 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

This Schedule 13G filing is a standard regulatory disclosure required when an entity acquires beneficial ownership of more than 5% of a class of a company's voting equity securities. It provides transparency regarding significant institutional holdings, which can be a signal of investor interest in the closed-end fund sector. The filing indicates a substantial passive investment by First Trust entities, a prominent investment firm known for its ETFs and unit investment trusts, in a growth-focused fund like Liberty All-Star Growth Fund, Inc.

Related Party Transactions

• The Charger Corporation is the General Partner of both First Trust Portfolios L.P. and First Trust Advisors L.P., establishing a related party structure among the reporting entities for the purpose of this joint filing.
• First Trust Portfolios L.P. sponsors unit investment trusts that hold the shares, and First Trust Advisors L.P. acts as portfolio supervisor for these trusts, indicating an internal operational relationship for managing the investment.

Stakeholder Impact

• Shareholders: Provides transparency regarding a significant institutional holder, potentially influencing investor perception and liquidity. The passive nature of the investment, as stated, suggests no immediate intent to influence corporate control.
• Management: Awareness of a large, passive institutional holder, which may influence strategic decisions over time, though the filers disclaim control intent.

Key Dates

Keywords

Liberty All-Star Growth Fund, First Trust Portfolios, First Trust Advisors, The Charger Corporation, Schedule 13G, beneficial ownership, common stock, investment fund, SEC filing, institutional ownership