SCHEDULE: First Trust Entities Report 22.08% Stake in Neuberger High Yield Fund

First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation jointly reported a 22.08% beneficial ownership stake in Neuberger High Yield Strategies 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. 10 to Schedule 13G.
• The filing reports beneficial ownership of 5,725,238 shares of Common stock in Neuberger High Yield Strategies Fund Inc.
• This aggregate amount represents 22.08% of the class of securities.
• The reporting persons disclaim sole or shared voting power over these shares (0.00%).
• They report shared dispositive power over all 5,725,238 shares.
• The shares are primarily held by unit investment trusts sponsored by First Trust Portfolios L.P., with First Trust Advisors L.P. acting as portfolio supervisor.
• The shares are voted by the trustee of the unit investment trusts, generally in proportion to other shareholders.
• The reporting entities 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.

Sentiment

Score: 6

Explanation: The filing is largely factual, reporting a significant ownership stake. The sentiment is neutral to slightly positive due to the confirmation of a large institutional holding, which can be seen as a vote of confidence, balanced by the disclaimer of control.

Positives

• The reporting entities explicitly state that the securities were acquired and are held in the ordinary course of business, not for the purpose of changing or influencing control of the issuer, which suggests a stable, passive investment approach.
• The significant ownership stake (22.08%) by institutional investors like First Trust may indicate confidence in the Neuberger High Yield Strategies Fund Inc.

Negatives

• The reporting entities disclaim beneficial ownership and voting power, meaning they do not directly control the voting of these significant shares, which could limit their direct influence on corporate governance matters despite the large stake.

Risks

• The reporting entities disclaim beneficial ownership of the shares, which means their interests might not always perfectly align with direct beneficial owners seeking active control or influence.
• The voting power for the shares held in unit investment trusts is exercised by the trustee, generally in proportion to other shareholders, which could dilute the impact of this large block of shares on specific corporate decisions if not aligned with management.

Future Outlook

The filing does not provide specific forward-looking statements or guidance regarding the issuer's future performance or the reporting entities' future investment intentions beyond the certification that the holdings are in the ordinary course of business.

Management Comments

• "By signing below I certify that, to the best of my knowledge and belief, 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."

Industry Context

This Schedule 13G filing indicates a significant passive institutional ownership stake in a high-yield strategies fund. Such filings are common for large asset managers and investment firms that hold substantial positions in publicly traded companies, often through various investment vehicles like unit investment trusts, without intending to exert control over the underlying company. The high-yield fund itself operates within the fixed-income market, focusing on debt instruments with higher risk and potentially higher returns.

Comparison to Industry Standards

• A 22.08% ownership stake is substantial for any institutional investor, placing First Trust among the largest shareholders of Neuberger High Yield Strategies Fund Inc. While the filing disclaims control, such a large passive stake is typical for major asset managers like BlackRock, Vanguard, or Fidelity, which often hold significant portions of companies across their various funds and ETFs.
• The structure of holding shares through unit investment trusts (UITs) and disclaiming voting power is a standard practice for sponsors and advisors of such vehicles, as the voting rights typically reside with the trust's trustee or are passed through to unit holders, ensuring compliance with investment company regulations and maintaining a passive investment stance.

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 control relationship among the three reporting entities.

Stakeholder Impact

• Shareholders: The significant 22.08% stake held by First Trust entities provides a large, stable institutional shareholder base, which can be viewed positively. However, the disclaimer of voting control means this large block may not actively influence corporate governance decisions.
• Management: Management of Neuberger High Yield Strategies Fund Inc. can operate with the understanding that a substantial portion of its shares are held by a passive institutional investor, reducing immediate pressure for activist interventions.

Next Steps

• The issuer, Neuberger High Yield Strategies Fund Inc., will continue its operations as a high-yield fund.
• The reporting persons will continue to hold their stake in the ordinary course of business, subject to their investment strategies for the underlying unit investment trusts and other managed accounts.

Key Dates

Keywords

Beneficial Ownership, Schedule 13G, First Trust, Neuberger High Yield Strategies Fund, Institutional Ownership, Investment Adviser, Unit Investment Trust, Common Stock, SEC Filing