Company: SWZ
Filing Date: 2025-01-27
Form Type: DEF 14A
Source: 0000894189-25-000453
Chunk: 26

Company: Total Return Securities Fund
Filing Date: 2025-01-27
Form: DEF 14A
Chunk 26
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-LINKED SECURITIES OF SWISS COMPANIES WITH A NON-FUNDAMENTAL INVESTMENT OBJECTIVE OF PROVIDING LONG-TERM TOTAL RETURN. As described below, the Board is proposing that stockholders approve the replacement of the Fund’s fundamental investment objective of capital appreciation by investing in equity and equity-linked securities of Swiss companies with a non-fundamental investment objective of providing long-term total return as described herein and, pursuant to Proposal 3, amendments to certain of the Fund’s fundamental investment restrictions. The Board believes that it would be in the best interests of stockholders to approve such proposed changes in order to allow the Fund flexibility to invest in securities other than equity and equity-linked securities of Swiss companies, as is currently the case. Proposal 2 and Proposal 3.a will be implemented by the Fund, if approved by stockholders, but each is contingent on stockholder approval of the other proposal. If stockholders fail to approve either Proposal 2 or Proposal 3.a, the Board will consider what actions, if any, should be taken. Why are stockholders being asked to approve the replacement of the Fund’s fundamental investment objective of capital appreciation by investing in equity and equity-linked securities of Swiss companies with a non-fundamental investment objective of providing long-term total return as described herein?The Fund’s current investment objective is to “seek long-term capital appreciation through investment in equity and equity-linked securities of Swiss companies” and is a fundamental objective, which means that it may not be changed without stockholder approval. The Board believes that it is in the best interests of stockholders to replace the Fund’s fundamental investment objective, with a non-fundamental investment objective of providing long-term total return. A non-fundamental investment objective may be changed in the future without stockholder approval if the Board believes that it is in the best interests of the stockholders to do so. The Board noted that there are a number of Swiss-equities focused exchange traded funds (“ETFs”) available to investors in the U.S. that operate with lower expense ratios than the Fund and that the Fund therefore no longer provides a necessary investment outlet for investors seeking exposure to Swiss equities. The Board believes that a non-fundamental investment objective of providing long-term total return allows the Fund flexibility to invest in securities other than equity and equity-linked securities of Swiss companies, as is currently the case, and makes the Fund a more attractive investment opportunity. A non-fundamental investment objective of providing long-term total return will have a material effect on the