Company: SWZ
Filing Date: 2025-01-10
Form Type: PRE 14A
Source: 0000894189-25-000129
Chunk: 32

Company: Total Return Securities Fund
Filing Date: 2025-01-10
Form: PRE 14A
Chunk 32
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urs, that it would be in the best interests of stockholders to approve the proposed amendments to the Fund’s Fundamental Investment Restrictions in order to allow the Fund to invest more broadly and to potentially invest more than 25% of the Fund’s assets in securities of closed-end investment companies. As noted above, 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. 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 amend certain of the Fund’s Fundamental Investment Restrictions?The Board is recommending that stockholders approve the amendment of certain of the Fund’s fundamental investment restrictions as set forth below (the “Fundamental Investment Restrictions”), principally to provide the Fund with greater flexibility to achieve its proposed non-fundamental objective of providing long-term total return pursuant to Proposal 2. The Fund’s Fundamental Investment Restrictions may not be changed without stockholder approval, as required by the 1940 Act. The Board believes that it is in the best interests of stockholders to amend the Fundamental Investment Restrictions as set forth below. -19-

| Current Fundamental Investment Restriction                                                                                                                                                                                                  |                                                                                                                                                                                                                                           |
| The Fund may not invest 25% or more of the total value of its assets in a particular industry.                                                                                                                                              | 3.a It is proposed that this restriction be amended as follows:                                                                                                                                                                           
 The Fund may not invest 25% or more of the total value of its assets in any particular industry, except that the Fund’s investment in closed-end funds (including business development companies) shall not be deemed to be an investment 
 in a particular industry.                                                                                                                                                                                                                 |
| The Fund may not issue senior securities, borrow money or pledge its assets, except that the Fund may borrow money from banks in amounts not exceeding 10% of its total assets (including the amount borrowed) and may pledge its assets in 
 connection with such permitted borrowing; provided that permitted derivative transactions are not deemed to be an issuance of a senior security.                                                                                            | 3.b It is proposed that this restriction be amended as follows:                                                                                                                                                                           
 “The Fund may not issue senior securities, borrow money or pledge its assets,except that the Fund may borrow money from banks in amounts not exceeding 10% of its total assets (including the amount borrowed) and may pledge its         
 assets in connection with such permitted borrowing; provided that permitted