Company: SWZ
Filing Date: 2025-01-27
Form Type: DEF 14A
Source: 0000894189-25-000453
Chunk: 29

Company: Total Return Securities Fund
Filing Date: 2025-01-27
Form: DEF 14A
Chunk 29
---
, liquidations, reorganizations, or spin-offs that, in the opinion of Bulldog, will provide attractive returns relative to the risk-free rate. As with all investing, an activist approach to investing is subject to the risk that the Fund’s investments may not increase in value and may decrease in value, possibly significantly. In addition, implementing an activist approach to investing could result 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. In addition, based on the fair value of the Fund’s liquid securities as of December 31, 2024, the Fund estimates that it would recognize a net capital gain of approximately $36 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