SCHEDULE: First Trust Entities Report 18.25% Stake in PGIM High Yield Bond Fund

First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation jointly reported a combined beneficial ownership of 18.25% in PGIM High Yield Bond Fund, Inc. common stock.

Summary

• First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation have jointly filed an Amendment No. 6 to Schedule 13G.
• The reporting group collectively beneficially owns 6,072,505 shares of common stock in PGIM High Yield Bond Fund, Inc.
• This aggregate amount represents 18.25% of the class of securities.
• First Trust Portfolios L.P. has shared dispositive power over 6,065,730 shares and no sole or shared voting power.
• First Trust Advisors L.P. and The Charger Corporation each have shared voting power over 6,775 shares and shared dispositive power over 6,072,505 shares.
• The shares are primarily held by unit investment trusts sponsored by First Trust Portfolios L.P., and other investment vehicles where First Trust Advisors L.P. serves as an investment advisor or sub-advisor.
• The reporting persons disclaim beneficial ownership of the shares, as voting power for the unit investment trusts typically rests with the trustee or unit holders.

Sentiment

Score: 5

Explanation: The filing is a routine beneficial ownership report (Schedule 13G Amendment), indicating a significant but passive stake. It does not contain information that would inherently suggest positive or negative sentiment regarding the issuer's performance or outlook, as the reporting entities disclaim beneficial ownership.

Positives

• Significant institutional interest from First Trust entities, holding an 18.25% stake, indicates a notable position in PGIM High Yield Bond Fund, Inc.

Negatives

• The reporting entities disclaim beneficial ownership, meaning they do not directly control the voting or economic benefits of the majority of the reported shares, which are held for clients or unit holders.

Risks

• The reporting entities disclaim beneficial ownership, indicating that their significant holding does not translate into direct control or influence over the issuer's operations or governance.

Future Outlook

NA

Industry Context

This filing reflects a significant passive investment by a major asset manager (First Trust) in a high-yield bond fund. Such large institutional holdings are common in the investment fund industry, where asset managers aggregate client investments into various vehicles. This particular filing highlights the structure of ownership through unit investment trusts and other managed accounts, where the asset manager reports the aggregate holdings but disclaims direct beneficial ownership or control.

Stakeholder Impact

• Shareholders: The disclosure of a large institutional holder like First Trust may be viewed positively as it indicates significant investment interest in the fund, potentially enhancing liquidity or perceived stability. However, the disclaimer of beneficial ownership means this stake does not imply active management influence.

Key Dates

Keywords

PGIM High Yield Bond Fund, First Trust Portfolios, First Trust Advisors, The Charger Corporation, Schedule 13G, Beneficial Ownership, High Yield Bonds, Investment Fund, Institutional Investor, Common Stock