SCHEDULE: First Trust Entities Maintain 14.59% Stake in Liberty All-Star Growth Fund

First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation jointly report a 14.59% beneficial ownership stake in Liberty All-Star Growth Fund, Inc. as of December 31, 2025.

Summary

• First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation jointly filed an Amendment No. 17 to Schedule 13G.
• They collectively hold beneficial ownership of 9,174,488 common shares of Liberty All-Star Growth Fund, Inc.
• This represents 14.59% of the issuer's common stock.
• The shares are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.
• The reporting persons disclaim beneficial ownership of the shares, indicating they manage these assets on behalf of clients or unit holders.
• First Trust Portfolios L.P. sponsors unit investment trusts (UITs) that hold shares, while First Trust Advisors L.P. supervises these UITs and manages other investment vehicles.
• The shares held by UITs are voted by the trustee, generally in proportion to other owners, though First Trust Portfolios L.P. may have discretion in certain agreements.

Sentiment

Score: 5

Explanation: The filing is a standard disclosure of beneficial ownership by institutional investors, indicating a passive stake held in the ordinary course of business. It contains no performance data or forward-looking statements that would suggest a positive or negative sentiment.

Positives

• The reporting entities are established financial institutions (Broker/Dealer, Investment Adviser, Holding Company), suggesting professional management of the stake.
• The filing explicitly states the shares are held in the ordinary course of business and not for control, indicating a passive investment approach.

Negatives

• No direct negatives are apparent from this passive ownership disclosure.

Risks

• The reporting entities disclaim beneficial ownership of the shares, meaning they manage these assets for clients and are not directly exposed to the fund's performance in the same way a direct beneficial owner would be.

Future Outlook

Not applicable, as this filing is a historical disclosure of ownership as of a specific date and does not contain forward-looking statements or guidance.

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 filing is a routine disclosure by institutional investors (First Trust entities) holding a significant, passive stake in a publicly traded investment fund (Liberty All-Star Growth Fund). Schedule 13G filings are common for investment advisers, broker-dealers, and other institutional investors who hold more than 5% of a company's stock but do not intend to influence or change control of the company. The disclaimer of beneficial ownership is typical for entities managing assets on behalf of clients (e.g., through unit investment trusts or managed accounts).

Comparison to Industry Standards

• The 14.59% stake is a substantial passive holding, typical for large asset managers like First Trust.
• The joint filing by a parent holding company (The Charger Corporation) and its subsidiaries (First Trust Portfolios L.P., First Trust Advisors L.P.) is standard practice for consolidated reporting of beneficial ownership.
• The explicit disclaimer of beneficial ownership, while maintaining shared dispositive power, aligns with the operational model of investment advisers and sponsors of unit investment trusts, where the underlying beneficial owners are the clients or unit holders.

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 clear related-party relationship among the reporting entities.
• First Trust Portfolios L.P. acts as sponsor of 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 these unit investment trusts and investment advisor/sub-advisor for other investment vehicles holding shares.

Stakeholder Impact

• Shareholders of Liberty All-Star Growth Fund, Inc.: The disclosure confirms a significant, stable institutional ownership stake (14.59%) by First Trust entities, which could be viewed positively as a vote of confidence, albeit a passive one. The disclaimer of beneficial ownership means First Trust is managing these assets for its clients, not holding them for its own direct profit.
• Clients/Unit Holders of First Trust Entities: This filing confirms that First Trust is managing a substantial position in Liberty All-Star Growth Fund, Inc. on their behalf, consistent with their investment mandates.

Key Dates

Recommendation

This Schedule 13G filing is a routine disclosure of a significant, passive ownership stake by institutional investors. It indicates that First Trust entities hold 14.59% of Liberty All-Star Growth Fund, Inc. common stock for their clients, not for control purposes. As such, the filing itself does not provide new information that would warrant a change in investment strategy (buy or sell) for the issuer's stock. It merely confirms an existing, substantial institutional presence. Investors should 'hold' and consider this information as part of the broader ownership structure, without it being a primary driver for immediate action.

Keywords

Liberty All-Star Growth Fund, First Trust, Schedule 13G, beneficial ownership, investment adviser, broker dealer, unit investment trust, common stock, passive investment, SEC filing