Company: TSI
Filing Date: 2025-12-18
Form Type: N-2/A
Source: 0001193125-25-324429
Chunk: 35

Company: TCW STRATEGIC INCOME FUND INC
Filing Date: 2025-12-18
Form: N-2/A
Chunk 35
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 its net capital gain, even if such income were distributed to its stockholders, and all distributions out of earnings and profits would be taxed to stockholders as ordinary dividend income. Requalifying as a RIC could subject the Fund to significant tax costs. See “Certain U.S. Federal Income Tax Matters — Taxation of the Fund” in the SAI. The Fund’s willingness to utilize leverage, and the amount of leverage the Fund will assume, will depend on many factors, the most important of which are market conditions and interest rates. Successful use of a leveraging strategy may depend on the Fund’s ability to predict correctly interest rates and market movements, and there is no assurance that a leveraging strategy will be successful during any period in which it is employed. Any leveraging of the Common Stock cannot be achieved until the proceeds resulting from the use of leverage have been invested in accordance with the Fund’s investment objective and policies.

The following table is designed to assist the investor in understanding the effects of leverage by illustrating the effect on the return to a holder of the Fund’s shares of Common Stock of leverage in the amount of approximately 33 1 / 3 % of the Fund’s Managed Assets ( i.e. , 50% of its net assets attributable to the Fund’s Common Stock), assuming hypothetical annual returns of the Fund’s portfolio of minus 10% to plus 10%. The Fund would need to achieve an annual rate of return of at least 1.33% in order to cover annual interest payments on borrowings under the Fund’s line of credit. As the table shows, leverage generally increases the return to holders of Common Stock when portfolio return is positive and greater than the cost of leverage and decreases the return when the portfolio return is negative or less than the cost of leverage. The figures appearing in the table are hypothetical and actual returns may be greater or less than those appearing in the table.

| Assumed portfolio return (net of expenses) |     |    (10 | )% |     |    (5 | )% |     |     0 | % |     |    5 | % |     |    10 | % |
| Corresponding share return                 |     | -13.33 | %  |     | -6.67 | %  |     | -1.33 | % |     | 6.67 | % |     | 13.33 | % |

Total return is composed of two elements — the dividends paid by the Fund (the amount of which is largely determined by