Company: SWZ
Filing Date: 2025-10-23
Form Type: N-2/A
Source: 0001999371-25-015937
Chunk: 49

Company: Total Return Securities Fund
Filing Date: 2025-10-23
Form: N-2/A
Chunk 49
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 (“NASDAQ”) are valued at the NASDAQ Official Closing Price. Readily marketable securities traded in the over-the counter market, including listed securities whose primary market is believed by the Investment Adviser to be over-the-counter, are valued at the mean of the current bid and asked prices as reported by the NASDAQ or, in the case of securities not reported by the NASDAQ or a comparable source, as the Board deems appropriate to reflect their fair market value. Where securities are traded on more than one exchange and also over-the-counter, the securities will generally be valued using the quotations the Board believes reflect most closely the value of such securities.

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DISTRIBUTION POLICY</div>

In May 2023, the Fund, acting pursuant to an SEC exemptive order and with the approval of the Board, adopted a managed distribution policy. Commencing in December 2024, the Fund began making quarterly distributions pursuant to the policy of $0.1458 per share, which equates to an annualized distribution rate of 6.00% based on the Fund’s NAV of $9.72 per share as of October 31, 2024. In accordance with the policy, the Fund on December 31, 2024 distributed $0.1458 per share to shareholders of record on December 17, 2024 and on March 31, 2025 distributed $0.01458 per share to shareholders of record on March 18, 2025. On April 14, 2025, the Fund paid a special cash distribution of $3.00 per share to shareholders of record on April 3, 2025. In connection with the Board’s approval of the April 2025 special cash distribution, the Board determined to suspend the Fund’s managed distribution plan until further notice.

No conclusions should be drawn about the Fund’s investment performance from the amount of the distributions. To the extent that the Fund’s investments do not generate sufficient investment income, the Fund may be required to liquidate a portion of its portfolio to fund these distributions and, therefore, these payments may represent a reduction of the Shareholder’s principal investment. A return-of-capital distribution reduces the U.S. federal income tax basis of an investor’s Shares, which may make record-keeping by certain Shareholders more difficult. In addition, return-of-capital distributions reduce the level of assets available for investment which may negatively affect the Fund’s ability to meet its objective. The percentage of return-of-capital distributions for