Company: SWZ
Filing Date: 2025-01-10
Form Type: PRE 14A
Source: 0000894189-25-000129
Chunk: 8

Company: Total Return Securities Fund
Filing Date: 2025-01-10
Form: PRE 14A
Chunk 8
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 overall investment strategy; making investment strategy decisions for the Fund (in consultation with the Fund’s Board); managing the investing and re-investing of Fund assets; placing purchase and sale orders on behalf of the Fund; advising the Fund with respect to all matters relating to the Fund’s use of leveraging techniques; and providing or procuring the provision of research and statistical data to the Fund in relation to investing and other matters within the scope of the investment objective and limitations of the Fund. The terms of the Proposed Agreement between the Fund and Bulldog are substantially similar to the terms of the existing agreement with SIMNA (the “Current Agreement”), except that (i) the contractual fee rate to be paid by the Fund is higher under the Proposed Agreement with Bulldog and (ii) the Proposed Agreement will include a provision whereby the Fund officer and director fees paid by the Fund to affiliates of Bulldog (other than with respect to the Fund’s Chief Compliance Officer) will be deducted from Bulldog’s investment advisory fee. The Non-Bulldog Directors have concluded that the terms of the Proposed Agreement, including the increased contractual fee rate and the deduction from the fee for officer and affiliated director compensation, support Bulldog providing investment advisory services to the Fund, but only if stockholders approve Proposal 2 (replacement of the Fund’s fundamental investment objective of capital appreciation by investing in equity and equity-linked securities of Swiss companies) and Proposal 3.a (an amendment to a fundamental investment restriction to exclude closed-end funds from the Fund’s concentration limit). Given the proposed changes to the Fund’s investment objective, principal investment strategies and fundamental investment restrictions, the Non-Bulldog Directors believe that a Bulldog managed fund pursuing the proposed investment objective of long-term total return will be a more attractive investment opportunity than the current investment opportunity.

| Q: | How do the advisory fees payable by the Fund compare under the Proposed Agreement and the Current Agreement? |

| A: | The Current Agreement between the Fund and SIMNA contains a fee rate schedule that provides for an annual advisory fee of 0.70% of the Fund’s average monthly net                                                                            
 assets and includes certain “breakpoints” as the Fund’s net assets increase.  In contrast, the Proposed Agreement provides for an annual advisory fee, payable monthly in arrears, of 1.00% based on the Fund’s average weekly total assets. 
 Bulldog will deduct from its advisory fee all officer and director fees paid to those officers and directors of the Fund (other than the Fund’s Chief Compliance Officer