07/11/2024 | Press release | Distributed by Public on 08/11/2024 00:21
(a)
|
|
Letter to Stockholders
|
1
|
Portfolio Composition
|
4
|
Portfolio of Investments
|
5
|
Statement of Assets and Liabilities
|
11
|
Statement of Operations
|
12
|
Statements of Changes
|
13
|
Financial Highlights
|
14
|
Notes to Financial Statements
|
16
|
Report of Independent Registered Public Accounting Firm
|
26
|
Privacy Policy
|
52
|
6 month
|
||||
Net assets value returns
|
(not annualized)
|
1 year
|
5 years
|
10 years
|
High Income Securities Fund
|
1.58%
|
6.91%
|
4.91%
|
4.47%
|
Market price returns
|
||||
High Income Securities Fund
|
4.22%
|
10.54%
|
7.18%
|
5.41%
|
Index returns
|
||||
ICE BofA Merrill Lynch 6 Month Treasury Bill Index
|
2.86%
|
5.73%
|
2.41%
|
1.76%
|
Share Price as of 8/31/2024
|
||||
Net asset value
|
$7.20
|
|||
Market price
|
$6.67
|
% of
|
||||||||||||
Value
|
Cost
|
Net Assets
|
||||||||||
Money Markets
|
$
|
70,433,262
|
$
|
70,433,262
|
33.29
|
%
|
||||||
Closed-End Funds
|
68,436,211
|
62,902,651
|
32.34
|
|||||||||
Special Purpose Acquisition Vehicles
|
39,711,024
|
39,304,835
|
18.78
|
|||||||||
Business Development Companies
|
19,681,952
|
20,028,449
|
9.30
|
|||||||||
Preferred Stocks
|
8,952,388
|
12,814,858
|
4.23
|
|||||||||
Other Common Stocks
|
2,814,479
|
3,886,116
|
1.33
|
|||||||||
Liquidating Trust
|
933,528
|
942,199
|
0.44
|
|||||||||
Exchange Traded Funds
|
467,087
|
441,587
|
0.22
|
|||||||||
Corporate Obligations
|
420,588
|
1,344,791
|
0.20
|
|||||||||
Warrants
|
19,758
|
40,777
|
0.01
|
|||||||||
Rights
|
2,221
|
2,160
|
0.00
|
|||||||||
Total Investments
|
$
|
211,872,498
|
$
|
212,141,685
|
100.14
|
%
|
||||||
Liabilities in Excess of Other Assets
|
(288,882
|
)
|
(0.14
|
)
|
||||||||
Total Net Assets
|
$
|
211,583,616
|
100.00
|
%
|
(1)
|
As a percentage of net assets.
|
Country
|
% of Net Assets
|
United States
|
83.38%
|
Cayman Islands
|
16.42%
|
Ireland
|
0.20%
|
Virgin Islands (British)
|
0.14%
|
100.14%
|
|
Liabilities in Excess of Other Assets
|
-0.14%
|
100.00%
|
Shares
|
Value
|
|||||||
INVESTMENT COMPANIES-41.64%
|
||||||||
Business Development Companies-9.30%
|
||||||||
CION Investment Corp.
|
626,379
|
$
|
7,704,462
|
|||||
FS KKR Capital Corp.
|
233,603
|
4,725,789
|
||||||
Logan Ridge Finance Corp.
|
81,300
|
1,756,487
|
||||||
PhenixFIN Corp.
|
19,218
|
899,402
|
||||||
Portman Ridge Finance Corp.
|
131,630
|
2,457,532
|
||||||
Runway Growth Finance Corp.
|
201,915
|
2,138,280
|
||||||
19,681,952
|
||||||||
Closed-End Funds-32.34%
|
||||||||
AllianceBernstein National Municipal Income Fund, Inc.
|
250,454
|
2,855,176
|
||||||
Bancroft Fund Ltd.
|
13,721
|
225,710
|
||||||
BlackRock California Municipal Income Trust
|
14,679
|
173,506
|
||||||
BlackRock Innovation and Growth Term Trust
|
40,209
|
301,969
|
||||||
BlackRock Municipal Income Fund, Inc.
|
467,811
|
5,810,213
|
||||||
BNY Mellon Municipal Income, Inc.
|
622,204
|
4,542,089
|
||||||
BNY Mellon Strategic Municipal Bond Fund, Inc.
|
452,373
|
2,750,428
|
||||||
BNY Mellon Alcentra Global Credit Income 2024 Target Term Fund, Inc.
|
44,162
|
401,432
|
||||||
ClearBridge Energy Midstream Opportunity Fund, Inc.
|
12,016
|
491,695
|
||||||
ClearBridge MLP & Midstream Total Return Fund, Inc.
|
4,648
|
189,638
|
||||||
Clough Global Opportunities Fund
|
105,392
|
562,793
|
||||||
Destra Multi-Alternative Fund (a)
|
166,851
|
1,396,543
|
||||||
DWS Municipal Income Trust
|
655,954
|
6,388,992
|
||||||
DWS Strategic Municipal Income Trust
|
226,825
|
2,281,859
|
||||||
Eaton Vance New York Municipal Bond Fund
|
270,570
|
2,681,349
|
||||||
Ellsworth Growth and Income Fund Ltd.
|
134,482
|
1,176,717
|
||||||
Flaherty & Crumrine Preferred and Income Opportunity Fund, Inc.
|
41,149
|
372,810
|
||||||
Gabelli Dividend & Income Trust
|
151,344
|
3,641,337
|
||||||
Herzfeld Caribbean Basin Fund, Inc.
|
12,872
|
29,348
|
||||||
Highland Income Fund
|
332,526
|
1,978,530
|
||||||
Invesco High Income 2024 Target Term Fund
|
263,232
|
1,972,924
|
||||||
MFS High Yield Municipal Trust
|
764,756
|
2,730,179
|
||||||
MFS Investment Grade Municipal Trust
|
245,951
|
1,994,663
|
||||||
Miller/Howard High Dividend Fund
|
184,777
|
2,208,085
|
||||||
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
|
91,195
|
452,327
|
||||||
Neuberger Berman Municipal Fund, Inc.
|
205,600
|
2,265,712
|
||||||
Neuberger Berman Next Generation Connectivity Fund, Inc.
|
242,168
|
3,012,570
|
Shares
|
Value
|
|||||||
INVESTMENT COMPANIES-(continued)
|
||||||||
Closed-End Funds-(continued)
|
||||||||
New America High Income Fund, Inc.
|
481,078
|
$
|
3,968,894
|
|||||
Nuveen Multi-Asset Income Fund
|
20,588
|
277,526
|
||||||
NYLI MacKay DefinedTerm Muni Opportunities Fund
|
22,358
|
374,273
|
||||||
PGIM Short Duration High Yield Opportunities Fund
|
15,265
|
246,606
|
||||||
Principal Real Estate Income Fund
|
199,003
|
2,185,053
|
||||||
Saba Capital Income & Opportunities Fund
|
231,408
|
1,712,419
|
||||||
Tortoise Energy Independence Fund, Inc.
|
49,741
|
1,901,598
|
||||||
Tortoise Midstream Energy Fund, Inc.
|
1,454
|
65,357
|
||||||
Tortoise Pipeline & Energy Fund, Inc.
|
13,463
|
561,273
|
||||||
Tortoise Power and Energy Infrastructure Fund, Inc.
|
132,629
|
2,433,742
|
||||||
Virtus Total Return Fund, Inc.
|
287,035
|
1,701,056
|
||||||
Western Asset Intermediate Muni Fund, Inc.
|
14,866
|
119,820
|
||||||
68,436,211
|
||||||||
Total Investment Companies (Cost $82,931,100)
|
88,118,163
|
|||||||
Shares/Units
|
||||||||
EXCHANGE TRADED FUNDS-0.22%
|
||||||||
Horizon Kinetics Spac Active ETF
|
4,700
|
467,087
|
||||||
Total Exchange Traded Funds (Cost $441,587)
|
467,087
|
|||||||
SPECIAL PURPOSE ACQUISITION VEHICLES-18.78%
|
||||||||
99 Acquisition Group, Inc. (a)
|
151,650
|
1,604,457
|
||||||
AA Mission Acquisition Corp. (a)(e)
|
100,000
|
998,000
|
||||||
Ai Transportation Acquisition Corp. (a)(e)
|
10,000
|
1,700
|
||||||
Ai Transportation Acquisition Corp. (a)(e)
|
45,269
|
471,250
|
||||||
Ares Acquisition Corp. II (a)(e)
|
60,015
|
645,761
|
||||||
Bowen Acquisition Corp. (a)(e)
|
14,216
|
151,543
|
||||||
Cantor Equity Partners, Inc. (a)(e)
|
115,000
|
1,152,300
|
||||||
Centurion Acquisition Corp. (a)(e)
|
156,250
|
1,557,813
|
||||||
Chenghe Acquisition II Co. (a)(e)
|
100,000
|
1,001,000
|
||||||
Churchill Capital Corp. IX (a)(e)
|
2,444
|
24,440
|
||||||
Churchill Capital Corp. IX (a)(e)
|
1
|
10
|
||||||
Colombier Acquisition Corp. II (a)(e)
|
38,001
|
387,990
|
||||||
EQV Ventures Acquisition Corp. (a)(e)
|
250,000
|
2,487,500
|
||||||
Eureka Acquisition Corp. (a)(e)
|
50,000
|
509,500
|
Shares/Units
|
Value
|
|||||||
SPECIAL PURPOSE ACQUISITION VEHICLES-(continued)
|
||||||||
Flag Ship Acquisition Corp. (a)(e)
|
137,500
|
$
|
1,388,750
|
|||||
GigCapital7 Corp. (a)(e)
|
166,013
|
1,650,169
|
||||||
Global Lights Acquisition Corp. (a)(e)
|
192,000
|
1,998,720
|
||||||
Haymaker Acquisition Corp. 4 (a)(e)
|
129,016
|
1,371,440
|
||||||
HCM II Acquisition Corp. (a)(e)
|
250,000
|
2,500,000
|
||||||
IB Acquisition Corp. (a)
|
129,140
|
9,040
|
||||||
IB Acquisition Corp. (a)
|
129,140
|
1,293,983
|
||||||
Inflection Point Acquisition Corp. II (a)(e)
|
217,023
|
2,317,806
|
||||||
Iron Horse Acquisitions Corp. (a)
|
32,232
|
326,832
|
||||||
Keen Vision Acquisition Corp. (a)(e)
|
28,469
|
304,049
|
||||||
Launch One Acquisition Corp. (a)(e)
|
150,000
|
1,498,500
|
||||||
Legato Merger Corp. III (a)(e)
|
40,196
|
409,597
|
||||||
Legato Merger Corp. III (a)(e)
|
1
|
10
|
||||||
Lionheart Holdings (a)(e)
|
73,338
|
734,847
|
||||||
M3-Brigade Acquisition V Corp. (a)(e)
|
229,010
|
2,294,680
|
||||||
Melar Acquisition Corp. I (a)(e)
|
75,000
|
751,500
|
||||||
Nabors Energy Transition Corp. II (a)(e)
|
58,563
|
621,939
|
||||||
Perceptive Capital Solutions Corp. (a)(e)
|
50,000
|
502,500
|
||||||
Quetta Acquisition Corp. (a)
|
102,660
|
1,063,558
|
||||||
RF Acquisition Corp. II (a)(e)
|
180,782
|
1,827,706
|
||||||
Silverbox Corp. IV (a)(e)
|
92,050
|
920,500
|
||||||
SIM Acquisition Corp. I (a)(e)
|
150,000
|
1,500,000
|
||||||
SK Growth Opportunities Corp. (a)(e)
|
12,584
|
141,569
|
||||||
Trailblazer Merger Corp. I (a)
|
36,458
|
395,934
|
||||||
Voyager Acquisition Corp. (a)(e)
|
290,284
|
2,894,131
|
||||||
Total Special Purpose Acquisition Vehicles (Cost $39,304,835)
|
39,711,024
|
|||||||
Shares
|
||||||||
OTHER COMMON STOCKS-1.33%
|
||||||||
Real Estate Investment Trusts-1.33%
|
||||||||
Equity Commonwealth (a)
|
95,000
|
1,925,650
|
||||||
NexPoint Diversified Real Estate Trust
|
150,649
|
888,829
|
||||||
Total Other Common Stocks (Cost $3,886,116)
|
2,814,479
|
Shares
|
Value
|
|||||||
PREFERRED STOCKS-4.23%
|
||||||||
Business Development Companies-0.66%
|
||||||||
OFS Credit Co., Inc.
|
60,000
|
$
|
1,392,000
|
|||||
Closed-End Funds-0.00%
|
||||||||
SuRo Capital Corp.
|
114,500
|
2,808,685
|
||||||
XAI Octagon Floating Rate Alternative Income Trust
|
80,000
|
1,993,896
|
||||||
4,802,581
|
||||||||
Real Estate Investment Trusts-1.30%
|
||||||||
Brookfield DTLA Fund Office Trust Investor, Inc., 7.625% (a)
|
1,615
|
105
|
||||||
Cedar Realty Trust, Inc.-Series C, 6.500%
|
101,456
|
1,370,670
|
||||||
NexPoint Diversified Real Estate Trust-Series A, 5.500%
|
94,082
|
1,386,769
|
||||||
2,757,544
|
||||||||
Real Estate Operations and Development-0.00%
|
||||||||
Harbor Custom Development, Inc-Series A, 8.000% (a)(b)
|
131,166
|
263
|
||||||
Retail-Catalog Shopping-0.00%
|
||||||||
Legacy IMBDS, Inc. (a)(b)
|
27,802
|
-
|
||||||
Total Preferred Stocks (Cost $12,814,858)
|
8,952,388
|
|||||||
LIQUIDATING TRUSTS-0.44%
|
||||||||
Copper Property CTL Pass Through Trust
|
87,573
|
933,528
|
||||||
Total Liquidating Trusts (Cost $942,199)
|
933,528
|
|||||||
Principal Amount
|
||||||||
CORPORATE OBLIGATIONS-0.20%
|
||||||||
Lamington Road DAC
8.000%, 2121-04-07 (b)(c)(d)(e)
|
$
|
8,731,755
|
349,270
|
|||||
14.000%, 2121-04-0%(b)(c)(d)(e)
|
538,248
|
71,318
|
||||||
Total Corporate Obligations (Cost $1,344,791)
|
420,588
|
|||||||
Shares
|
||||||||
Rights-0.00%
|
||||||||
RF Acquisition Corp. II (a)(e)
|
36,407
|
2,221
|
||||||
Total Rights (Cost $2,160)
|
2,221
|
Shares
|
Value
|
|||||||
WARRANTS-0.01% (a)
|
||||||||
Ault Disruptive Technologies Corp. (a)
|
||||||||
Expiration: June 2028
|
||||||||
Exercise Price: $11.50
|
48,000
|
$
|
480
|
|||||
Cartesian Growth Corp. II (a)(e)
|
||||||||
Expiration: July 2028
|
||||||||
Exercise Price: $11.50
|
33,333
|
2,667
|
||||||
Centurion Acquisition Corp. (a)
|
||||||||
Expiration: May 2032
|
||||||||
Exercise Price: $11.50
|
78,125
|
6,265
|
||||||
Churchill Capital Corp. IX (a)
|
||||||||
Expiration: March 2031
|
||||||||
Exercise Price: $11.50
|
611
|
153
|
||||||
Colombier Acquisition Corp. II (a)(e)
|
||||||||
Expiration: November 2028
|
||||||||
Exercise Price: $11.50
|
12,667
|
4,180
|
||||||
ExcelFin Acquisition Corp. (a)
|
||||||||
Expiration: October 2028
|
||||||||
Exercise Price: $11.50
|
25,000
|
1,000
|
||||||
Legato Merger Corp. III (a)(e)
|
||||||||
Expiration: May 2031
|
||||||||
Exercise Price: $11.50
|
20,098
|
2,414
|
||||||
Relativity Acquisition Corp. (a)(b)
|
||||||||
Expiration: December 2029
|
||||||||
Exercise Price: $11.50
|
21,700
|
-
|
||||||
Target Global Acquisition I Corp. (a)(e)
|
||||||||
Expiration: December 2026
|
||||||||
Exercise Price: $11.50
|
23,633
|
2,599
|
||||||
Total Warrants (Cost $40,777)
|
19,758
|
Shares
|
Value
|
|||||||
MONEY MARKET FUNDS-33.29%
|
||||||||
Fidelity Investments Money Market Funds-
|
||||||||
Government Portfolio, Institutional, 5.205% (d)
|
35,216,631
|
$
|
35,216,631
|
|||||
STIT-Treasury Portfolio, Institutional, 5.154% (d)
|
35,216,631
|
35,216,631
|
||||||
Total Money Market Funds (Cost $70,433,262)
|
70,433,262
|
|||||||
Total Investments (Cost $212,141,685)-100.14%
|
211,872,498
|
|||||||
Liabilities in Excess of Other Assets--0.14%
|
(288,882
|
)
|
||||||
TOTAL NET ASSETS-100.00%
|
$
|
211,583,616
|
(a)
|
Non-income producing security.
|
(b)
|
The rate shown represents the 7-day yield at August 31, 2024.
|
(c)
|
Fair valued securities. The total market value of these securities was $420,588, representing 0.20% of net assets. Value determined using significant unobservable inputs.
|
(d)
|
The coupon rate shown represents the rate at August 31, 2024.
|
(e)
|
Foreign-issued security.
|
BDC
|
Business Development Company.
|
LTD.
|
Limited Liability Company.
|
Assets:
|
||||
Investments, at value (Cost $212,141,685)
|
$
|
211,872,498
|
||
Dividends and interest receivable
|
296,823
|
|||
Receivable for investments sold
|
1,573,519
|
|||
Other assets
|
22,022
|
|||
Total assets
|
213,764,862
|
|||
Liabilities:
|
||||
Expenses and fees:
|
||||
Investments purchased
|
2,032,644
|
|||
Audit
|
37,900
|
|||
Legal
|
11,235
|
|||
Investment committee
|
31,250
|
|||
Officers
|
15,000
|
|||
Reports and notices to shareholders fees
|
20,113
|
|||
Custody
|
4,191
|
|||
Administration
|
22,424
|
|||
Chief Compliance Officer
|
6,000
|
|||
Other
|
489
|
|||
Total liabilities
|
2,181,246
|
|||
Net assets
|
$
|
211,583,616
|
||
Net assets consist of:
|
||||
Paid-in Capital (Unlimited shares authorized)
|
$
|
212,187,360
|
||
Accumulated deficit
|
(603,744
|
)
|
||
Net assets
|
$
|
211,583,616
|
||
Net asset value per share ($211,583,616 applicable to
|
||||
29,391,450shares outstanding)
|
$
|
7.20
|
For the
|
||||
year ended
|
||||
August 31, 2024
|
||||
Investment income:
|
||||
Dividends
|
$
|
6,369,852
|
||
Interest
|
1,353,311
|
|||
Total investment income
|
7,723,163
|
|||
Expenses and Fees:
|
||||
Investment Committee
|
375,000
|
|||
Trustees
|
330,180
|
|||
Administration
|
146,080
|
|||
Legal
|
129,178
|
|||
Officers
|
90,000
|
|||
Compliance
|
79,067
|
|||
Reports and notices to shareholders
|
59,832
|
|||
Transfer agency
|
51,175
|
|||
Registration
|
44,517
|
|||
Audit
|
37,860
|
|||
Other
|
30,877
|
|||
Custody
|
15,849
|
|||
Accounting
|
3,116
|
|||
Total expenses
|
1,392,731
|
|||
Net investment income
|
6,330,432
|
|||
Net realized and unrealized gain from investment activities:
|
||||
Net realized gain from:
|
||||
Net realized gain from investments
|
5,985,564
|
|||
Net realized gain
|
5,985,564
|
|||
Change in net unrealized appreciation/depreciation on investments
|
5,799,309
|
|||
Net realized and unrealized gain from investment activities
|
11,784,873
|
|||
Increase in net assets resulting from operations
|
$
|
18,115,305
|
For the
|
For the
|
|||||||
year ended
|
year ended
|
|||||||
August 31, 2024
|
August 31, 2023
|
|||||||
From operations:
|
||||||||
Net investment income
|
$
|
6,330,432
|
$
|
6,373,293
|
||||
Net realized gain (loss) on investments
|
5,985,564
|
(1,362,709
|
)
|
|||||
Change in net unrealized
|
||||||||
appreciation/depreciation on investments
|
5,799,309
|
886,635
|
||||||
Net increase in net assets resulting from operations
|
18,115,305
|
5,897,219
|
||||||
Distributions paid to shareholders:
|
||||||||
Distributions
|
(10,541,980
|
)
|
(6,973,091
|
)
|
||||
Return of capital
|
(3,154,292
|
)
|
(6,616,524
|
)
|
||||
Total dividends and distributions paid to shareholders
|
(13,696,272
|
)
|
(13,589,615
|
)
|
||||
Capital Stock Transactions (Note 5)
|
||||||||
Issuance of common stock through rights offering
|
76,855,828
|
-
|
||||||
Redemptions in kind
|
-
|
-
|
||||||
Total capital stock transactions
|
76,855,828
|
-
|
||||||
Net increase (decrease) in net assets
|
||||||||
applicable to common shareholders
|
81,274,861
|
(7,692,396
|
)
|
|||||
Net assets applicable to common shareholders:
|
||||||||
Beginning of year
|
$
|
130,308,755
|
$
|
138,001,151
|
||||
End of year
|
$
|
211,583,616
|
$
|
130,308,755
|
||||
Number of Fund Shares
|
||||||||
Shares outstanding at beginning of year
|
17,530,463
|
17,530,463
|
||||||
Shares issued
|
11,860,987
|
-
|
||||||
Shares outstanding at end of year
|
29,391,450
|
17,530,463
|
(1)
|
Per share net investment income has been determined on the basis of the average number of shares outstanding during the period.
|
(2)
|
Total market price return is calculated assuming a $10,000 purchase of common stock at the current market price on the first day of each period reported and a sale at the current market price on the last day of each period reported.
|
For the years ended August 31,
|
||||||||||||||||||
2024
|
2023
|
2022
|
2021
|
2020
|
||||||||||||||
$
|
7.43
|
$
|
7.87
|
$
|
9.31
|
$
|
8.65
|
$
|
9.49
|
|||||||||
0.35
|
0.36
|
0.31
|
0.21
|
0.38
|
||||||||||||||
0.63
|
(0.02
|
)
|
(0.43
|
)
|
2.01
|
(0.32
|
)
|
|||||||||||
0.98
|
0.34
|
(0.12
|
)
|
2.22
|
0.06
|
|||||||||||||
(0.57
|
)
|
(0.40
|
)
|
(0.34
|
)
|
(0.33
|
)
|
(0.34
|
)
|
|||||||||
-
|
-
|
(0.32
|
)
|
(0.43
|
)
|
(0.05
|
)
|
|||||||||||
(0.17
|
)
|
(0.38
|
)
|
(0.24
|
)
|
(0.19
|
)
|
(0.51
|
)
|
|||||||||
(0.74
|
)
|
(0.78
|
)
|
(0.90
|
)
|
(0.95
|
)
|
(0.90
|
)
|
|||||||||
-
|
-
|
0.00
|
0.00
|
0.00
|
||||||||||||||
-
|
-
|
-
|
-
|
-
|
||||||||||||||
(0.47
|
)
|
-
|
(0.42
|
)
|
(0.61
|
)
|
-
|
|||||||||||
$
|
7.20
|
$
|
7.43
|
$
|
7.87
|
$
|
9.31
|
$
|
8.65
|
|||||||||
$
|
6.67
|
$
|
6.76
|
$
|
7.15
|
$
|
9.92
|
$
|
8.10
|
|||||||||
10.54
|
%
|
6.35
|
%
|
-19.66
|
%
|
36.37
|
%
|
9.86
|
%
|
|||||||||
1.04
|
%
|
0.95
|
%
|
1.03
|
%
|
1.57
|
%
|
1.89
|
%
|
|||||||||
4.72
|
%
|
4.90
|
%
|
3.71
|
%
|
2.30
|
%
|
4.30
|
%
|
|||||||||
$
|
211,584
|
$
|
130,309
|
$
|
138,001
|
$
|
88,328
|
$
|
48,129
|
|||||||||
84
|
%
|
52
|
%
|
74
|
%
|
93
|
%
|
81
|
%
|
Level 1-
|
Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
|
Level 2-
|
Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
|
Level 3-
|
Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund's own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
|
Quoted Prices in
|
||||||||||||||||
Active Markets
|
||||||||||||||||
for Identical
|
Significant Other
|
Unobservable
|
||||||||||||||
Investments
|
Observable Inputs
|
Inputs
|
||||||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
|||||||||||||
Investment Companies
|
||||||||||||||||
Business Development Companies
|
$
|
18,782,550
|
$
|
899,402
|
$
|
-
|
$
|
19,681,952
|
||||||||
Closed-End Funds
|
68,436,211
|
-
|
-
|
68,436,211
|
||||||||||||
Exchange Traded Funds
|
467,087
|
-
|
-
|
467,087
|
||||||||||||
Special Purpose Acquisition Vehicles
|
23,739,003
|
15,972,021
|
-
|
39,711,024
|
||||||||||||
Other Common Stock
|
2,814,479
|
-
|
-
|
2,814,479
|
||||||||||||
Preferred Stocks
|
8,952,020
|
105
|
263
|
8,952,388
|
||||||||||||
Liquidating Trusts
|
933,528
|
-
|
-
|
933,528
|
||||||||||||
Corporate Obligations
|
-
|
-
|
420,588
|
420,588
|
||||||||||||
Rights
|
-
|
2,221
|
-
|
2,221
|
||||||||||||
Warrants
|
11,598
|
8,160
|
-
|
19,758
|
||||||||||||
Money Market Funds
|
70,433,262
|
-
|
-
|
70,433,262
|
||||||||||||
Total
|
$
|
194,569,738
|
$
|
16,881,909
|
$
|
420,851
|
$
|
211,872,498
|
Derivatives not accounted
|
Statement of Assets &
|
|
for as hedging instruments
|
Liabilities Location
|
Value
|
Equity Contracts-Warrants
|
Investments, at value
|
$19,758
|
Amount of Realized Gain on Derivatives Recognized in Income
|
||
Derivatives not accounted
|
Statement of
|
|
for as hedging instruments
|
Operations Location
|
Value
|
Equity Contracts-Warrants
|
Net Realized Loss on Investments
|
$(131,633)
|
Change in Unrealized Appreciation (Depreciation)
|
||
on Derivatives Recognized in Income
|
||
Derivatives not accounted
|
Statement of
|
|
for as hedging instruments
|
Operations Location
|
Total
|
Equity Contracts-Warrants
|
Net change in unrealized appreciation of investments
|
$125,287
|
August 31, 2024
|
August 31, 2023
|
|||||||
Ordinary Income
|
$
|
10,541,980
|
$
|
6,973,091
|
||||
Return of capital
|
3,154,292
|
6,616,524
|
||||||
Long Term Capital Gain Distribution
|
-
|
-
|
||||||
Total distributions paid
|
$
|
13,696,272
|
$
|
13,589,615
|
Tax cost of investments
|
$
|
212,476,242
|
||
Unrealized appreciation
|
9,943,407
|
|||
Unrealized depreciation
|
(10,547,151
|
)
|
||
Net unrealized depreciation
|
(603,744
|
)
|
||
Undistributed ordinary income
|
-
|
|||
Undistributed long-term gains
|
-
|
|||
Total distributable earnings
|
-
|
|||
Other accumulated losses and other temporary differences
|
-
|
|||
Total accumulated loss
|
$
|
(603,744
|
)
|
Cost of purchases
|
Proceeds from sales
|
||||||||
Investments in securities (Long-term)
|
$
|
116,707,075
|
$
|
97,892,179
|
|||||
U.S. government securities (Long-term)
|
-
|
-
|
|||||||
Total
|
$
|
116,707,075
|
$
|
97,892,179
|
TAIT, WELLER & BAKER LLP
|
Term of
|
Number of
|
||||
Office
|
Portfolios
|
||||
and
|
in Fund
|
Other
|
|||
Position(s)
|
Length
|
Principal Occupation
|
Complex
|
Directorships
|
|
Name, Address
|
Held with
|
of Time
|
During the Past
|
Overseen
|
held by
|
and Age*
|
the Fund
|
Served
|
Five Years
|
by Trustee**
|
Trustee
|
INTERESTED TRUSTEES
|
|||||
Andrew Dakos***
|
President
|
1 year;
|
Partner - Bulldog Investors,
|
1
|
Director, Brookfield
|
(58)
|
as of
|
Since
|
LLP since 2009; Partner -
|
DTLA Fund Office
|
|
July 2018.
|
2018
|
Ryan Heritage, LLP; Principal
|
Trust Investor, Inc.;
|
||
of the former general partner
|
Trustee, Crossroads
|
||||
of several private investment
|
Liquidating Trust
|
||||
partnerships in the Bulldog
|
(until 2020);
|
||||
Investors group of private funds.
|
Director, Special
|
||||
Opportunities
|
|||||
Fund, Inc.;
|
|||||
Chairman, Swiss
|
|||||
Helvetia Fund, Inc.;
|
|||||
Director, BNY
|
|||||
Mellon Municipal
|
|||||
Income Inc.
|
|||||
Phillip Goldstein***
|
Secretary
|
1 year;
|
Partner - Bulldog Investors,
|
1
|
Chairman, The
|
(79)
|
as of
|
Since
|
LLP since 2009; Partner -
|
Mexico Equity and
|
|
July 2018.
|
2018
|
Ryan Heritage, LLP; Principal
|
Income Fund, Inc.;
|
||
of the former general partner
|
Chairman, Special
|
||||
of several private investment
|
Opportunities
|
||||
partnerships in the Bulldog
|
Fund, Inc.; Director,
|
||||
Investors group of private funds.
|
Brookfield DTLA
|
||||
Fund Office Trust
|
|||||
Investor Inc.;
|
|||||
Director, MVC
|
|||||
Capital, Inc.
|
|||||
(until 2020);
|
|||||
Trustee, Crossroads
|
|||||
Liquidating Trust
|
|||||
(until 2020);
|
|||||
Director, Swiss
|
|||||
Helvetia Fund, Inc.;
|
|||||
Director, BNY
|
|||||
Mellon Municipal
|
|||||
Income Inc.
|
Term of
|
Number of
|
||||
Office
|
Portfolios
|
||||
and
|
in Fund
|
Other
|
|||
Position(s)
|
Length
|
Principal Occupation
|
Complex
|
Directorships
|
|
Name, Address
|
Held with
|
of Time
|
During the Past
|
Overseen
|
held by
|
and Age*
|
the Fund
|
Served
|
Five Years
|
by Trustee**
|
Trustee
|
Rajeev Das
|
-
|
1 year;
|
Principal of Bulldog
|
1
|
Director, The
|
(55)
|
Since
|
Investors, LLP and Ryan
|
Mexico Equity &
|
||
2018
|
Heritage, LLP
|
Income Fund, Inc.
|
|||
INDEPENDENT TRUSTEES
|
|||||
Gerald Hellerman
|
-
|
1 year;
|
Chief Compliance Officer
|
1
|
Trustee, Fiera
|
(86)
|
Since
|
of the Fund and The Mexico
|
Capital Series Trust;
|
||
2018
|
Equity and Income Fund, Inc.
|
Director, Swiss
|
|||
(through March 2020).
|
Helvetia Fund, Inc.;
|
||||
Director, The
|
|||||
Mexico Equity and
|
|||||
Income Fund, Inc.;
|
|||||
Director, Special
|
|||||
Opportunities
|
|||||
Fund, Inc.; Director,
|
|||||
MVC Capital, Inc.
|
|||||
(until 2020);
|
|||||
Trustee, Crossroad
|
|||||
Liquidating Trust
|
|||||
(until 2020).
|
|||||
Moritz Sell
|
-
|
1 year;
|
Founder and Principal of
|
1
|
Director, Aberdeen
|
(56)
|
Since
|
Edison Holdings GmbH and
|
Australia Equity
|
||
2018
|
Senior Advisor to Markston
|
Fund; Director,
|
|||
International LLC (through
|
Swiss Helvetia Fund,
|
||||
December 2020).
|
Inc.; Director,
|
||||
Aberdeen Global
|
|||||
Income Fund, Inc,;
|
|||||
Director, Aberdeen
|
|||||
Asia-Pacific Income
|
|||||
Fund, Inc.; Chairman,
|
|||||
Aberdeen
|
|||||
Singapore Fund
|
|||||
(until 2018);
|
|||||
Director, Aberdeen
|
|||||
Greater China Fund
|
|||||
(until 2018);
|
|||||
Director, BNY
|
|||||
Mellon Municipal
|
|||||
Income Inc.
|
|||||
Richard Dayan
|
-
|
1 year;
|
Owner of CactusTrading.
|
1
|
Director, Swiss
|
(80)
|
Since
|
Helvetia Fund, Inc.
|
|||
2018
|
Term of
|
Number of
|
||||
Office
|
Portfolios
|
||||
and
|
in Fund
|
Other
|
|||
Position(s)
|
Length
|
Principal Occupation
|
Complex
|
Directorships
|
|
Name, Address
|
Held with
|
of Time
|
During the Past
|
Overseen
|
held by
|
and Age*
|
the Fund
|
Served
|
Five Years
|
by Trustee**
|
Trustee
|
Ben Harris
|
-
|
1 year;
|
Chairman of Hormel Harris
|
1
|
Director, Special
|
(56)
|
Since
|
Investments, LLC; Principal
|
Opportunities
|
||
2018
|
of NBC Bancshares, LLC; Chief
|
Fund, Inc.
|
|||
Executive Officer of Crossroads
|
|||||
Capital, Inc.; Administrator of
|
|||||
Crossroads Liquidating Trust.
|
|||||
OFFICERS
|
|||||
Andrew Dakos***
|
President
|
1 year;
|
Partner - Bulldog Investors,
|
n/a
|
n/a
|
(58)
|
as of
|
Since
|
LLP; Partner - Ryan Heritage,
|
||
July 2018.
|
2018
|
LLP; Principal of the former
|
|||
general partner of several private
|
|||||
investment partnerships in the
|
|||||
Bulldog Investors group of funds.
|
|||||
Thomas Antonucci***
|
Treasurer
|
1 year;
|
Director of Operations of
|
n/a
|
n/a
|
(55)
|
as of
|
Since
|
Bulldog Investors, LLP.
|
||
July 2018.
|
2018
|
||||
Phillip Goldstein***
|
Secretary
|
1 year;
|
Partner - Bulldog Investors,
|
n/a
|
n/a
|
(79)
|
as of
|
Since
|
LLP; Partner - Ryan Heritage,
|
||
July 2018.
|
2018
|
LLP; Principal of the former
|
|||
general partner of several private
|
|||||
investment partnerships in the
|
|||||
Bulldog Investors group of funds.
|
|||||
Stephanie Darling***
|
Chief
|
1 year;
|
General Counsel and Chief
|
n/a
|
n/a
|
(54)
|
Compliance
|
Since
|
Compliance Officer of Bulldog
|
||
Officer
|
2018
|
Investors, LLP; Chief Compliance
|
|||
as of
|
Officer of Ryan Heritage, LLP,
|
||||
July 2018.
|
Swiss Helvetia Fund, Special
|
||||
Opportunities Fund and
|
|||||
Mexico Equity and Income Fund,
|
|||||
Principal, the Law Office of
|
|||||
Stephanie Darling; Editor-In-Chief,
|
|||||
The Investment Lawyer.
|
*
|
The address for all trustees and officers is c/o High Income Securities Fund, 615 East Michigan Street, Milwaukee, WI 53202.
|
|
**
|
The Fund Complex is comprised of only the Fund.
|
|
***
|
Messrs. Dakos, Goldstein, Antonucci and Ms. Darling are each considered an "interested person" of the Fund within the meaning of the 1940 Act because of their positions as officers of the Fund.
|
1.
|
Information from the Consumer: this category includes information the Fund receives from you on or in applications or other forms, correspondence, or conversations (such as your name, address, phone number, social security number, assets, income and date of birth); and
|
|
2.
|
Information about the Consumer's transactions: this category includes information about your transactions with the Fund, its affiliates, or others (such as your account number and balance, payment history, parties to transactions, cost basis information, and other financial information).
|
(b)
|
Not applicable.
|
FYE 08/31/2024
|
FYE 08/31/2023
|
|
( a ) Audit Fees
|
$32,500
|
$32,500
|
( b ) Audit-Related Fees
|
$2,000
|
$2,000
|
( c ) Tax Fees
|
$3,400
|
$3,400
|
( d ) All Other Fees
|
$-
|
$-
|
FYE 08/31/2024
|
FYE 08/31/2023
|
|
Audit-Related Fees
|
0%
|
0%
|
Tax Fees
|
0%
|
0%
|
All Other Fees
|
0%
|
0%
|
Non-Audit Related Fees
|
FYE 08/31/2024
|
FYE 08/31/2023
|
Registrant
|
-
|
-
|
Registrant's Investment Adviser
|
-
|
-
|
(a)
|
Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
|
(b)
|
Not Applicable.
|
1.
|
The name of the issuer of the portfolio security;
|
2.
|
The exchange ticker symbol of the portfolio security;
|
3.
|
The CUSIP number (may be omitted if it is not available through reasonably practicable means);
|
4.
|
The shareholder meeting date;
|
5.
|
A brief description of the matter voted on;
|
6.
|
Whether the matter was proposed by the issuer or the security holder;
|
7.
|
Whether the Fund cast its vote on the matter;
|
8.
|
How the Fund cast its vote (e.g., for or against proposal, or abstain; for or withhold regarding election of directors); and
|
9.
|
Whether the Fund cast its vote for or against management.
|
Period
|
(a)
Total Number of
Shares (or Units)
Purchased
|
(b)
Average Price
Paid per Share
(or Unit)
|
(c)
Total Number of
Shares (or Units)
Purchased as Part
of Publicly
Announced Plans
or Programs
|
(d)
Maximum Number (or
Approximate Dollar
Value) of Shares (or
Units) that May Yet Be
Purchased Under the
Plans or Programs
|
March 1 - March 31, 2024
|
-
|
-
|
-
|
N/A
|
April 1 - April 30, 2024
|
-
|
-
|
-
|
N/A
|
May 1 - May 31, 2024
|
-
|
-
|
-
|
N/A
|
June 1 - June 30, 2024
|
-
|
-
|
-
|
N/A
|
July 1 - July 31, 2024
|
-
|
-
|
-
|
N/A
|
August 1 - Augst 31, 2024
|
-
|
-
|
-
|
N/A
|
Total
|
-
|
-
|
-
|
N/A
|
(a)
|
The Registrant's [Principal Executive Officer] and [Principal Financial Officer] have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant's service provider.
|
(b)
|
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
|
(a)
|
(5)
|
There was no change in the registrant's independent public accountant for the period covered by this report.
|
(b)
|
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.
|
(c) | Notices to Fund's shareholders in accordance with Rule 19a-1 under the Investment Company Act of 1940, as amended. Filed herewith. |