Company: SWZ
Filing Date: 2025-01-10
Form Type: PRE 14A
Source: 0000894189-25-000129
Chunk: 12

Company: Total Return Securities Fund
Filing Date: 2025-01-10
Form: PRE 14A
Chunk 12
---
4 (the “Current Agreements”). The Current Agreements were last approved by stockholders on June 27, 2014 in connection with the Fund’s entry into the Current Agreements. The Current Agreements may be terminated at any time, without payment of any penalty, by the Board, by vote of a 1940 Act Majority or by Schroders, in each case on 60 days’ written notice to the parties thereto. A “1940 Act Majority” means the lesser of (i) 67% or more of the Fund’s outstanding shares present at the Meeting, if the holders of more than 50% of the Fund’s shares are present or represented by Proxy or (ii) more than 50% of the Fund’s outstanding shares. The Current Agreements will automatically terminate in the event of an “assignment” (as defined in the 1940 Act). Proposal 1 will be implemented by the Fund, if approved by stockholders, but is contingent on stockholder approval of Proposal 2 and Proposal 3.a. If stockholders fail to approve Proposal 2 or Proposal 3.a or if the Proposed Agreement is not approved by a 1940 Act Majority, the Board currently expects that Schroders would continue to manage the Fund and the Board, including the Non-Interested Directors, would consider what actions, if any, would be appropriate. If the Fund’s stockholders approve each of Proposals 1, 2 and 3, the Board anticipates that the Fund would opportunistically sell substantially all of the liquid positions in the Fund’s portfolio in order to facilitate implementation of the new investment objective and strategy. The Board noted that a sale of the Fund's liquid positions would result in the realization of a large amount of capital gains that would result in the need for a capital gains distribution to maintain the Fund's status as a "regulated investment company" for Federal income tax purposes, which would reduce the total assets of the Fund by approximately [30]% based upon current prices of the Fund’s portfolio holdings but will ultimately depend on stock prices at the time of sale. In addition, if, subsequent to said distribution, the Fund trades at a discount to net asset value per share (“NAV”) in excess of 10% for 10 consecutive trading days in 2025, the Fund’s Board intends, as promptly as practicable, to commence a tender offer for at least 15% of the Fund’s outstanding shares of common stock at a price of at least 98% of NAV