Company: SWZ
Filing Date: 2025-01-10
Form Type: PRE 14A
Source: 0000894189-25-000129
Chunk: 29

Company: Total Return Securities Fund
Filing Date: 2025-01-10
Form: PRE 14A
Chunk 29
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 in costs to the Fund that otherwise would not be present, such as the cost of waging a proxy contest and the related legal, printing and other costs. If Proposals 1, 2 and 3.a are approved and Bulldog becomes the Fund’s investment adviser, the risks and strategies of the Fund will be substantially different. What are the material differences between the securities currently held in the Fund’s portfolio and those in which the Fund will invest if this Proposal 2 is approved?Currently, the Fund only invests in equity and equity-linked securities of Swiss companies. If stockholders approve this Proposal 2, the Fund will no longer seek to invest only in such securities, but rather would have a much wider universe of securities in which it may invest, including equity securities issued by non-Swiss companies. The Board believes that permitting the Fund to invest more broadly in securities other than those issued by Swiss companies will assist the Fund to achieve favorable returns for its stockholders. Certain risks associated with the securities in which the Fund may invest if this Proposal 2 is approved by stockholders are set forth in Exhibit B. If this Proposal 2 is approved, the Fund would likely attempt to dispose of substantially all of its liquid Swiss equity and equity-linked securities in an orderly fashion, so as to obtain favorable prices for the assets. Some brokerage costs would be incurred by the Fund in connection with such dispositions. The Fund estimates such brokerage costs would be less than 0.1% of the fair value of such securities based on information and pricing available as of [●]. In addition, based on the fair value of the Fund’s liquid securities as of [●], the Fund estimates that it would recognize a net capital gain of approximately $[●] million upon disposition of such securities at such fair value. Such amount is subject to change, possibly materially. The 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. As soon as practicable, Bulldog (assuming Proposal 1 is approved) would commence to invest the Fund’s cash in accordance with the new investment objective approved pursuant to this Proposal 2 and the investment strategy discussed in Proposal 1, resulting in