SCHEDULE: First Trust Entities Amend Morgan Stanley Debt Fund Stake

First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation jointly filed an amendment to their Schedule 13G, reporting a 14.09% beneficial ownership in Morgan Stanley Emerging Markets Debt Fund, Inc. as of December 31, 2025.

Summary

• First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation have jointly filed an Amendment No. 13 to Schedule 13G.
• The filing reports beneficial ownership of 2,850,585 common shares, representing 14.09% of Morgan Stanley Emerging Markets Debt Fund, Inc.
• The event date requiring this filing was December 31, 2025.
• The reporting persons disclaim sole voting and sole dispositive power over these shares, holding 0.00 in both categories.
• They report shared dispositive power over all 2,850,585 shares.
• First Trust Portfolios L.P. is classified as a Broker or Dealer (BD), First Trust Advisors L.P. as an Investment Adviser (IA), and The Charger Corporation as a Parent Holding Company (HC).
• The Charger Corporation is the General Partner of both First Trust Portfolios L.P. and First Trust Advisors L.P.
• First Trust Portfolios L.P. sponsors unit investment trusts (UITs) that hold shares of the issuer, with no individual UIT holding more than 3% of the issuer's shares.
• First Trust Advisors L.P. supervises these UITs and serves as investment advisor/sub-advisor for other registered investment companies, pooled investment vehicles, and separately managed accounts that hold issuer shares.
• The reporting persons certify that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.
• Each reporting person disclaims beneficial ownership of the shares identified in this filing.

Sentiment

Score: 5

Explanation: This is a routine regulatory filing disclosing institutional ownership, not containing performance or strategic updates that would typically influence sentiment. The sentiment is neutral as it simply reports a factual ownership position.

Positives

• The continued significant institutional ownership by First Trust entities (14.09%) may signal ongoing confidence in the Morgan Stanley Emerging Markets Debt Fund, Inc.

Negatives

• No specific negative information regarding the issuer's performance or outlook is presented in this ownership disclosure.

Risks

• No specific risks related to the issuer's operations, financial health, or strategic direction are disclosed in this ownership filing. The filing primarily concerns the reporting entities' beneficial ownership structure and disclaimers.

Future Outlook

This filing is an ownership disclosure and does not contain any forward-looking statements or guidance regarding the future outlook of Morgan Stanley Emerging Markets Debt Fund, Inc. or the reporting entities.

Industry Context

This Schedule 13G amendment reflects a routine regulatory disclosure of significant institutional ownership in a closed-end fund. The reporting entities, First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation, are established players in the investment management industry, particularly known for their unit investment trusts and advisory services. Their continued substantial stake in Morgan Stanley Emerging Markets Debt Fund, Inc. indicates ongoing investment in the emerging markets debt sector, which is a common strategy for diversified portfolios seeking income and growth from developing economies.

Related Party Transactions

• The filing explicitly states that The Charger Corporation is the General Partner of both First Trust Portfolios L.P. and First Trust Advisors L.P., establishing a related party relationship among the reporting entities for the purpose of this joint filing.

Stakeholder Impact

• Shareholders of Morgan Stanley Emerging Markets Debt Fund, Inc. are informed of the continued significant institutional ownership by the First Trust entities, providing transparency regarding the fund's ownership structure.
• The disclosure clarifies the nature of the beneficial ownership, noting that the reporting entities disclaim voting power over the shares held in unit investment trusts, which are voted by the trustee.

Key Dates

Keywords

Morgan Stanley Emerging Markets Debt Fund, First Trust, Schedule 13G, beneficial ownership, institutional investment, closed-end fund, debt fund, emerging markets, unit investment trusts