SEC Form N-CSRS filed by High Income Securities Fund
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Exact name of registrant as specified in charter)
(Address of principal executive offices) (Zip code)
(Name and address of agent for service)
(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
|
||
Privacy Policy
|
44
|
6 month
|
||||
Net assets value returns
|
(not annualized)
|
1 year
|
5 years
|
10 years
|
High Income Securities Fund
|
5.25%
|
8.78%
|
5.03%
|
4.77%
|
Market price returns
|
||||
High Income Securities Fund
|
6.06%
|
12.06%
|
4.33%
|
5.44%
|
Index returns
|
||||
ICE BofA Merrill Lynch 6 Month Treasury Bill Index
|
2.78%
|
5.37%
|
2.12%
|
1.48%
|
Share Price as of 2/29/2024
|
||||
Net asset value
|
$
|
|||
Market price
|
|
$
|
% of
|
||||||||||||
Value
|
Cost
|
Net Assets
|
||||||||||
Closed-End Funds
|
$
|
64,059,296
|
$
|
64,368,969
|
49.10
|
%
|
||||||
Business Development Companies
|
21,174,614
|
22,114,862
|
16.23
|
|||||||||
Special Purpose Acquisition Vehicles
|
19,905,753
|
19,510,373
|
15.26
|
|||||||||
Money Markets
|
10,438,076
|
10,438,076
|
8.00
|
|||||||||
Preferred Stocks
|
11,090,487
|
15,729,983
|
8.50
|
|||||||||
Other Common Stocks
|
915,565
|
2,122,360
|
0.70
|
|||||||||
Liquidating Trust
|
850,682
|
904,767
|
0.65
|
|||||||||
Corporate Obligations
|
592,705
|
1,006,474
|
0.45
|
|||||||||
Exchange Traded Funds
|
456,863
|
441,587
|
0.35
|
|||||||||
Warrants
|
41,049
|
122,158
|
0.03
|
|||||||||
Rights
|
20,274
|
25,868
|
0.02
|
|||||||||
Total Investments
|
$
|
129,545,364
|
$
|
136,785,477
|
99.30
|
%
|
||||||
Assets in Excess of Other Liabilities
|
910,545
|
0.70
|
||||||||||
Total Net Assets
|
$
|
130,455,909
|
100.00
|
%
|
(1)
|
As a percentage of net assets.
|
Country
|
% of Net Assets
|
|||
United States
|
88.23
|
%
|
||
Cayman Islands
|
10.62
|
%
|
||
Ireland
|
0.45
|
%
|
||
99.30
|
%
|
|||
Liabilities in Excess of Other Assets
|
0.70
|
%
|
||
100.00
|
%
|
|||
Shares
|
Value
|
|||||||
INVESTMENT COMPANIES—65.33%
|
||||||||
Business Development Companies—16.23%
|
||||||||
Barings BDC, Inc.
|
192,889
|
$
|
1,890,312
|
|||||
CION Investment Corp.
|
617,720
|
6,659,022
|
||||||
FS KKR Capital Corp.
|
374,220
|
7,065,274
|
||||||
Logan Ridge Finance Corp.
|
81,300
|
1,808,925
|
||||||
PhenixFIN Corp. (a)
|
19,193
|
860,109
|
||||||
Portman Ridge Finance Corp.
|
157,289
|
2,890,972
|
||||||
|
21,174,614
|
|||||||
Closed-End Funds—49.10%
|
||||||||
AllianceBernstein National Municipal Income Fund, Inc.
|
64,176
|
698,876
|
||||||
Bancroft Fund Ltd.
|
13,721
|
212,264
|
||||||
BlackRock California Municipal Income Trust
|
144,271
|
1,695,184
|
||||||
Blackstone Strategic Credit Fund
|
60,774
|
714,095
|
||||||
BNY Mellon Municipal Income, Inc.
|
622,204
|
4,115,879
|
||||||
BNY Mellon Strategic Municipal Bond Fund, Inc.
|
291,157
|
1,685,799
|
||||||
BNY Mellon Alcentra Global Credit Income 2024 Target Term Fund, Inc.
|
67,021
|
568,338
|
||||||
Carlyle Credit Income Fund
|
111,472
|
886,202
|
||||||
ClearBridge Energy Midstream Opportunity Fund, Inc.
|
87,663
|
3,260,186
|
||||||
ClearBridge MLP & Midstream Fund, Inc.
|
68,796
|
2,899,751
|
||||||
ClearBridge MLP & Midstream Total Return Fund, Inc.
|
41,239
|
1,583,578
|
||||||
Destra Multi-Alternative Fund
|
161,097
|
1,272,666
|
||||||
DWS Municipal Income Trust
|
1,174,528
|
10,500,281
|
||||||
DWS Strategic Municipal Income Trust
|
171,491
|
1,509,121
|
||||||
Eaton Vance New York Municipal Bond Fund
|
281,569
|
2,787,533
|
||||||
Ellsworth Growth and Income Fund Ltd.
|
65,128
|
524,280
|
||||||
Federated Hermes Premier Municipal Income Fund
|
2,970
|
32,878
|
||||||
First Trust High Yield Opportunities 2027 Term Fund
|
54,916
|
804,519
|
||||||
First Trust MLP and Energy Income Fund
|
9,498
|
82,538
|
||||||
Herzfeld Caribbean Basin Fund, Inc.
|
1,232
|
3,216
|
||||||
Highland Income Fund
|
332,526
|
2,101,564
|
||||||
Invesco High Income 2024 Target Term Fund
|
123,227
|
931,596
|
||||||
MFS High Yield Municipal Trust
|
764,756
|
2,500,752
|
||||||
MFS Investment Grade Municipal Trust
|
245,951
|
1,844,633
|
||||||
MFS Special Value Trust
|
358
|
1,547
|
||||||
Miller/Howard High Dividend Fund
|
46,070
|
488,803
|
||||||
Morgan Stanley Emerging Markets Debt Fund, Inc.
|
41,607
|
298,738
|
Shares
|
Value
|
|||||||
INVESTMENT COMPANIES—(continued)
|
||||||||
Closed-End Funds—(continued)
|
||||||||
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
|
100,365
|
$
|
469,708
|
|||||
Neuberger Berman Municipal Fund, Inc.
|
68,397
|
708,935
|
||||||
Neuberger Berman Next Generation Connectivity Fund, Inc.
|
397,605
|
4,715,596
|
||||||
New America High Income Fund, Inc.
|
150,875
|
1,096,861
|
||||||
Nuveen Multi-Asset Income Fund
|
20,588
|
248,909
|
||||||
Nuveen Preferred & Income Term Fund
|
19,447
|
368,910
|
||||||
NXG NextGen Infrastructure Income Fund
|
41,521
|
1,469,843
|
||||||
PGIM Global High Yield Fund, Inc.
|
88,779
|
1,033,388
|
||||||
PGIM Short Duration High Yield Opportunities Fund
|
11,503
|
174,846
|
||||||
Principal Real Estate Income Fund
|
197,931
|
1,993,165
|
||||||
Saba Capital Income & Opportunities Fund
|
231,408
|
1,691,592
|
||||||
Tortoise Energy Independence Fund, Inc.
|
49,741
|
1,532,520
|
||||||
Tortoise Power and Energy Infrastructure Fund, Inc.
|
92,081
|
1,340,699
|
||||||
Virtus Convertible & Income 2024 Target Term Fund
|
39,523
|
347,802
|
||||||
Virtus Total Return Fund, Inc.
|
518,376
|
2,742,209
|
||||||
Western Asset Global Corporate Defined Opportunity Fund, Inc.
|
174
|
2,203
|
||||||
Western Asset Intermediate Muni Fund, Inc.
|
14,866
|
117,293
|
||||||
64,059,296
|
||||||||
Total Investment Companies (Cost $86,483,831)
|
85,233,910
|
|||||||
Shares/Units
|
||||||||
EXCHANGE TRADED FUNDS—0.35%
|
||||||||
Horizon Kinetics Spac Active ETF
|
4,700
|
456,863
|
||||||
Total Exchange Traded Funds (Cost $441,587)
|
456,863
|
|||||||
SPECIAL PURPOSE ACQUISITION VEHICLES—15.26%
|
||||||||
99 Acquisition Group, Inc. (a)
|
151,650
|
1,557,446
|
||||||
Ai Transportation Acquisition Corp. (a)(e)
|
10,000
|
102,800
|
||||||
Ai Transportation Acquisition Corp. (a)(e)
|
35,269
|
361,155
|
||||||
AP Acquisition Corp. (a)(e)
|
82,500
|
924,825
|
||||||
Ares Acquisition Corp. II (a)(e)
|
60,015
|
631,958
|
||||||
Bowen Acquisition Corp. (a)(e)
|
14,216
|
147,387
|
||||||
Cartesian Growth Corp. II (a)(e)
|
50,000
|
552,000
|
||||||
Colombier Acquisition Corp. II (a)(e)
|
1
|
10
|
||||||
Colombier Acquisition Corp. II (a)(e)
|
12,667
|
4,813
|
Shares/Units
|
Value
|
|||||||
SPECIAL PURPOSE ACQUISITION VEHICLES—(continued)
|
||||||||
Colombier Acquisition Corp. II (a)(e)
|
38,001
|
$
|
387,230
|
|||||
EVe Mobility Acquisition Corp. (a)(e)
|
40,963
|
445,272
|
||||||
Feutune Light Acquisition Corp. (a)
|
50,000
|
545,500
|
||||||
Four Leaf Acquisition Corp. (a)
|
41,431
|
439,997
|
||||||
Global Lights Acquisition Corp. (a)(e)
|
192,000
|
1,948,799
|
||||||
Haymaker Acquisition Corp. 4 (a)(e)
|
129,016
|
1,336,607
|
||||||
Inflection Point Acquisition Corp. II (a)(e)
|
217,023
|
2,265,720
|
||||||
Investcorp Europe Acquisition Corp. I (a)(e)
|
95,068
|
1,059,058
|
||||||
Legato Merger Corp. III (a)(e)
|
40,197
|
405,588
|
||||||
Nabors Energy Transition Corp. II (a)(e)
|
58,563
|
611,983
|
||||||
Patria Latin American Opportunity Acquisition Corp. (a)(e)
|
12,631
|
142,351
|
||||||
Quetta Acquisition Corp. (a)
|
102,660
|
1,045,079
|
||||||
Screaming Eagle Acquisition Corp. (a)(e)
|
233,798
|
2,492,286
|
||||||
TG Venture Acquisition Corp. (a)(b)
|
190,793
|
2,113,986
|
||||||
Trailblazer Merger Corp. I (a)
|
36,458
|
383,903
|
||||||
Total Special Purpose Acquisition Vehicles (Cost $19,510,373)
|
19,905,753
|
|||||||
Shares
|
||||||||
OTHER COMMON STOCKS—0.70%
|
||||||||
Real Estate Investment Trusts—0.70%
|
||||||||
NexPoint Diversified Real Estate Trust
|
144,639
|
915,565
|
||||||
Total Other Common Stocks (Cost $2,122,360)
|
915,565
|
|||||||
PREFERRED STOCKS—8.50%
|
||||||||
Business Development Companies—4.74%
|
||||||||
OFS Credit Co., Inc.
|
60,000
|
1,380,000
|
||||||
SuRo Capital Corp.
|
200,000
|
4,806,000
|
||||||
6,186,000
|
||||||||
Closed-End Funds—1.51%
|
||||||||
XAI Octagon Floating Rate Alternative Income Term Trust
|
80,000
|
1,972,624
|
||||||
Real Estate Investment Trusts—2.19%
|
||||||||
Brookfield DTLA Fund Office Trust Investor, Inc., 7.625% (a)
|
1,615
|
129
|
||||||
Cedar Realty Trust, Inc.- Series C, 6.500%
|
101,456
|
1,412,268
|
||||||
NexPoint Diversified Real Estate Trust—Series A, 5.500%
|
94,082
|
1,439,455
|
||||||
2,851,852
|
Shares
|
Value
|
|||||||
PREFERRED STOCKS—(continued)
|
||||||||
Real Estate Operations and Development—0.06%
|
||||||||
Harbor Custom Development, Inc—Series A, 8.000% (a)
|
131,166
|
$
|
80,011
|
|||||
Retail—Catalog Shopping—0.00%
|
||||||||
iMedia Brands, Inc. (b)
|
27,802
|
0
|
||||||
Total Preferred Stocks (Cost $15,729,983)
|
11,090,487
|
|||||||
LIQUIDATING TRUSTS—0.65%
|
||||||||
Copper Property CTL Pass Through Trust
|
83,811
|
850,682
|
||||||
Total Liquidating Trusts (Cost $904,767)
|
850,682
|
|||||||
|
Principal Amount
|
|||||||
CORPORATE OBLIGATIONS—0.46%
|
||||||||
Lamington Road DAC
|
||||||||
8.000%, 2121-04-07 (b)(c)(d)(e)
|
8,072,998
|
322,920
|
||||||
14.000%, 2121-04-07 (b)(c)(d)(e)
|
519,816
|
269,785
|
||||||
Total Corporate Obligations (Cost $1,006,474)
|
592,705
|
|||||||
Shares
|
||||||||
RIGHTS—0.02% (a)
|
||||||||
Lakeshore Acquisition II Corp. (a)(e)
|
59,500
|
15,470
|
||||||
Nocturne Acquisition Corp. (a)(e)
|
40,000
|
4,804
|
||||||
Total Rights (Cost $25,868)
|
20,274
|
|||||||
WARRANTS—0.03% (a)
|
||||||||
Andretti Acquisition Corp. (a)(e)
|
||||||||
Expiration: March 2028
|
||||||||
Exercise Price: $11.50
|
25,000
|
5,753
|
||||||
AtlasClear Holdings, Inc. (a)
|
||||||||
Expiration: October 2028
|
||||||||
Exercise Price: $11.50
|
33,000
|
1,320
|
||||||
Ault Disruptive Technologies Corp. (a)
|
||||||||
Expiration: June 2028
|
||||||||
Exercise Price: $11.50
|
48,000
|
389
|
||||||
Cartesian Growth Corp. II (a)(e)
|
||||||||
Expiration: July 2028
|
||||||||
Exercise Price: $11.50
|
33,333
|
4,500
|
||||||
Churchill Capital Corp. VII (a)
|
||||||||
Expiration: February 2028
|
||||||||
Exercise Price: $11.50
|
11,761
|
3,999
|
Shares
|
Value
|
|||||||
WARRANTS—(continued)
|
||||||||
Digital Health Acquisition Corp. (a)
|
||||||||
Expiration: November 2026
|
||||||||
Exercise Price: $11.50
|
42,000
|
$
|
2,100
|
|||||
ExcelFin Acquisition Corp. (a)
|
||||||||
Expiration: October 2028
|
||||||||
Exercise Price: $11.50
|
25,000
|
625
|
||||||
HNR Acquisition Corp. (a)
|
||||||||
Expiration: February 2026
|
||||||||
Exercise Price: $11.50
|
37,000
|
2,775
|
||||||
Lakeshore Acquisition II Corp. (a)(e)
|
||||||||
Expiration: November 2026
|
||||||||
Exercise Price: $11.50
|
29,750
|
893
|
||||||
LAMF Global Ventures Corp. I (a)(e)
|
||||||||
Expiration: November 2026
|
||||||||
Exercise Price: $11.50
|
25,000
|
825
|
||||||
Relativity Acquisition Corp. (a)(b)
|
||||||||
Expiration: December 2029
|
||||||||
Exercise Price: $11.50
|
21,700
|
—
|
||||||
Screaming Eagle Acquisition Corp. (a)(e)
|
||||||||
Expiration: January 2027
|
||||||||
Exercise Price: $11.50
|
33,333
|
15,203
|
||||||
Target Global Acquisition I Corp. (a)(e)
|
||||||||
Expiration: December 2026
|
||||||||
Exercise Price: $11.50
|
23,633
|
1,772
|
||||||
TG Venture Acquisition Corp. (a)
|
||||||||
Expiration: August 2028
|
||||||||
Exercise Price: $11.50
|
74,000
|
895
|
||||||
Total Warrants (Cost $122,158)
|
41,049
|
Shares
|
Value
|
|||||||
MONEY MARKET FUNDS—8.00%
|
||||||||
Fidelity Investments Money Market Funds—
|
||||||||
Government Portfolio, Institutional, 5.199% (d)
|
5,219,038
|
$
|
5,219,038
|
|||||
STIT—Treasury Portfolio, Institutional, 5.232% (d)
|
5,219,038
|
5,219,038
|
||||||
Total Money Market Funds (Cost $10,438,076)
|
10,438,076
|
|||||||
Total Investments (Cost $136,785,477)—99.30%
|
129,545,364
|
|||||||
Assets in Excess of Other Liabilities—0.70%
|
910,545
|
|||||||
TOTAL NET ASSETS—100.00%
|
$
|
130,455,909
|
(a)
|
Non-income producing security.
|
(b)
|
The rate shown represents the 7-day yield at February 29, 2024.
|
(c)
|
Fair valued securities. The total market value of these securities was $592,705, representing 0.45% of net assets. Value determined using significant unobservable inputs.
|
(d)
|
The coupon rate shown represents the rate at February 29, 2024.
|
(e)
|
Foreign-issued security.
|
Abbreviations:
|
|
BDC
|
Business Development Company.
|
LTD.
|
Limited Liability Company.
|
Assets:
|
||||
Investments, at value (Cost $136,785,477)
|
$
|
129,545,364
|
||
Cash
|
—
|
|||
Dividends and interest receivable
|
215,480
|
|||
Receivable for investments sold
|
779,928
|
|||
Other
|
99,592
|
|||
Total assets
|
130,640,364
|
|||
Liabilities:
|
||||
Expenses and fees:
|
||||
Investments purchased
|
14,391
|
|||
Audit
|
55,752
|
|||
Officer’s
|
7,671
|
|||
Custody
|
3,227
|
|||
Chief Compliance Officer
|
11,836
|
|||
Other
|
59,972
|
|||
Miscellaneous
|
28,237
|
|||
Audit and valuation
|
3,369
|
|||
Total liabilities
|
184,455
|
|||
Net assets
|
$
|
130,455,909
|
||
Net assets consist of:
|
||||
Paid-in Capital (Unlimited shares authorized)
|
$
|
138,417,061
|
||
Accumulated deficit
|
(7,961,152
|
)
|
||
Net assets
|
$
|
130,455,909
|
||
Net asset value per share ($130,455,910 applicable to
|
||||
|
$
|
|
For the
|
||||
six months ended
|
||||
February 29, 2024
|
||||
(Unaudited)
|
||||
Investment income:
|
||||
Dividends
|
$
|
4,268,692
|
||
Interest
|
860,009
|
|||
Total investment income
|
5,128,701
|
|||
Expenses and Fees:
|
||||
Investment Committee
|
190,708
|
|||
Administration
|
46,960
|
|||
Officers
|
29,925
|
|||
Compliance
|
35,648
|
|||
Reports and notices to shareholders
|
41,083
|
|||
Audit
|
23,159
|
|||
Registration
|
11,788
|
|||
Transfer agency
|
23,501
|
|||
Insurance
|
13,366
|
|||
Legal
|
42,418
|
|||
Custody
|
8,051
|
|||
Other
|
164,822
|
|||
Accounting
|
1,431
|
|||
Total expenses
|
632,860
|
|||
Net investment income
|
4,495,841
|
|||
Net realized and unrealized loss from investment activities:
|
||||
Net realized loss from:
|
||||
Net realized loss from investments
|
727,924
|
|||
Net realized loss
|
727,924
|
|||
Change in net unrealized depreciation on investments
|
1,339,539
|
|||
Net realized and unrealized loss from investment activities
|
2,067,463
|
|||
Increase in net assets resulting from operations
|
$
|
6,563,304
|
For the
|
||||||||
six months ended
|
For the
|
|||||||
February 29, 2024
|
year ended
|
|||||||
(Unaudited)
|
August 31, 2023
|
|||||||
From operations:
|
||||||||
Net investment income
|
$
|
4,495,841
|
$
|
6,373,293
|
||||
Net realized gain (loss) on investments,
|
||||||||
forward foreign currency contracts
|
||||||||
and foreign currency translations
|
727,924
|
(1,362,709
|
)
|
|||||
Net unrealized appreciation on investments, forward
|
||||||||
foreign currency contracts and foreign currency translations
|
1,339,539
|
886,635
|
||||||
Net increase in net assets resulting from operations
|
6,563,304
|
5,897,219
|
||||||
Distributions paid to shareholders:
|
||||||||
Distributions
|
(6,416,150
|
)
|
(6,973,091
|
)
|
||||
Return of capital
|
—
|
(6,616,524
|
)
|
|||||
Total dividends and distributions paid to shareholders
|
(6,416,150
|
)
|
(13,589,615
|
)
|
||||
Capital Stock Transactions (Note 5)
|
||||||||
Issuance of common stock through rights offering
|
—
|
—
|
||||||
Redemptions in kind
|
—
|
—
|
||||||
Total capital stock transactions
|
—
|
—
|
||||||
Net increase (decrease) in net assets
|
||||||||
applicable to common shareholders
|
147,154
|
(7,692,396
|
)
|
|||||
Net assets applicable to common shareholders:
|
||||||||
Beginning of period
|
$
|
130,308,755
|
$
|
138,001,151
|
||||
End of period
|
$
|
130,455,909
|
$
|
130,308,755
|
||||
Number of Fund Shares
|
||||||||
Shares outstanding at beginning of period
|
|
|
||||||
Shares issued
|
—
|
—
|
||||||
Shares outstanding at end of period
|
|
|
For the six
|
||||
months ended
|
||||
February 29, 2024
|
||||
(Unaudited)
|
||||
Net asset value, beginning of year/period
|
$
|
|
||
Net investment income(1)
|
0.26
|
|||
Net realized and unrealized gains (losses) from investment activities
|
0.12
|
|||
Total from investment operations
|
0.38
|
|||
Less distributions:
|
||||
Net investment income
|
(0.37
|
)
|
||
Net realized gains from investment activities
|
—
|
|||
Return of capital
|
—
|
|||
Total distributions
|
(0.37
|
)
|
||
Increase from shares repurchased
|
—
|
|||
Anti-dilutive effect of Tender Offer
|
—
|
|||
Dilutive effect of Rights Offer
|
—
|
|||
Net asset value, end of year/period
|
$
|
|
||
Market price, end of year/period
|
$
|
|
||
Total market price return(2)
|
7.50
|
%
|
||
Ratio to average net assets:
|
||||
Ratio of expenses to average net assets
|
0.99
|
%
|
||
Ratio of net investment income to average net assets
|
7.03
|
%
|
||
Supplemental data:
|
||||
Net assets, end of year/period (000’s)
|
$
|
130,456
|
||
Portfolio turnover
|
45
|
%
|
(1)
|
Per share net investment income has been determined on the basis of the weighted 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, and assuming reinvestment of dividends and other distributions to common shareholders at prices obtained under the Fund’s Dividend Reinvestment Plan (which was terminated on September 12, 2018).
|
2023
|
2022
|
2021
|
2020
|
2019
|
||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||
0.36
|
0.37
|
0.21
|
0.38
|
0.13
|
||||||||||||||
(0.02
|
)
|
(0.49
|
)
|
2.01
|
(0.32
|
)
|
0.01
|
|||||||||||
0.34
|
(0.12
|
)
|
2.22
|
0.06
|
0.14
|
|||||||||||||
(0.40
|
)
|
(0.90
|
)
|
(0.33
|
)
|
(0.34
|
)
|
(0.05
|
)
|
|||||||||
—
|
—
|
(0.43
|
)
|
(0.05
|
)
|
(0.41
|
)
|
|||||||||||
(0.38
|
)
|
—
|
(0.19
|
)
|
(0.51
|
)
|
—
|
|||||||||||
(0.78
|
)
|
(0.90
|
)
|
(0.95
|
)
|
(0.90
|
)
|
(0.46
|
)
|
|||||||||
—
|
0.00
|
0.00
|
0.00
|
—
|
||||||||||||||
—
|
—
|
—
|
—
|
0.12
|
||||||||||||||
—
|
(0.42
|
)
|
(0.61
|
)
|
—
|
—
|
||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||
6.35
|
%
|
-19.62
|
%
|
36.37
|
%
|
9.86
|
%
|
-7.56
|
%
|
|||||||||
0.95
|
%
|
1.03
|
%
|
1.57
|
%
|
1.89
|
%
|
1.18
|
%
|
|||||||||
4.90
|
%
|
3.71
|
%
|
2.30
|
%
|
4.30
|
%
|
1.34
|
%
|
|||||||||
$
|
130,309
|
$
|
138,001
|
$
|
88,328
|
$
|
48,129
|
$
|
52,812
|
|||||||||
52
|
%
|
128
|
%
|
93
|
%
|
81
|
%
|
43
|
%
|
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
|
$
|
21,174,614
|
$
|
—
|
$
|
—
|
$
|
21,174,614
|
||||||||
Closed-End Funds
|
64,059,296
|
—
|
—
|
64,059,296
|
||||||||||||
Exchange Traded Funds
|
456,863
|
—
|
—
|
456,863
|
||||||||||||
Special Purpose Acquisition Vehicles
|
16,091,878
|
1,699,889
|
2,113,986
|
19,905,753
|
||||||||||||
Other Common Stocks
|
||||||||||||||||
Real Estate Investment Trusts
|
915,565
|
—
|
—
|
915,565
|
||||||||||||
Preferred Stocks
|
||||||||||||||||
Business Development Companies
|
6,186,000
|
—
|
—
|
6,186,000
|
||||||||||||
Closed-End Funds
|
1,972,624
|
—
|
—
|
1,972,624
|
||||||||||||
Real Estate Investment Trusts
|
2,851,723
|
129
|
—
|
2,851,852
|
||||||||||||
Real Estate Operations
|
||||||||||||||||
and Development
|
80,011
|
—
|
—
|
80,011
|
||||||||||||
Retail—Catalog Shopping
|
—
|
—
|
—
|
—
|
||||||||||||
Liquidating Trusts
|
850,682
|
—
|
—
|
850,682
|
||||||||||||
Corporate Obligations
|
—
|
—
|
592,705
|
592,705
|
||||||||||||
Rights
|
20,274
|
—
|
—
|
20,274
|
||||||||||||
Warrants
|
36,543
|
4,506
|
—
|
41,049
|
||||||||||||
Money Market Funds
|
10,438,076
|
—
|
—
|
10,438,076
|
||||||||||||
Total
|
$
|
125,134,149
|
$
|
1,704,524
|
$
|
2,706,691
|
$
|
129,545,364
|
Derivatives not accounted
|
Statement of Assets &
|
|
for as hedging instruments
|
Liabilities Location
|
Value
|
Equity Contracts—Warrants
|
Investments, at value
|
$45,862
|
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
|
$(66,987)
|
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 depreciation of investments
|
$66,397
|
|
August 31, 2023 | August 31, 2022 | ||||||
Ordinary Income | $ | 6,973,091 | $ | 7,909,410 | ||||
Return of capital |
6,616,524 | 3,889,965 | ||||||
Long Term Capital Gain Distribution |
—
|
2,653,276 | ||||||
Total distributions paid |
$ | 13,589,615 | $ | 14,452,651 |
Tax cost of investments
|
$
|
136,767,116
|
||
Unrealized appreciation
|
7,029,709
|
|||
Unrealized depreciation
|
(13,465,220
|
)
|
||
Net unrealized depreciation
|
(6,435,511
|
)
|
||
Undistributed ordinary income
|
—
|
|||
Undistributed long-term gains
|
—
|
|||
Total distributable earnings
|
—
|
|||
Other accumulated losses and other temporary differences
|
(1,672,795
|
)
|
||
Total accumulated loss
|
$
|
(8,108,306
|
)
|
Cost of purchases
|
Proceeds from sales
|
|||||||
Investments in securities (Long-term)
|
$
|
53,363,524
|
$
|
50,747,436
|
||||
U.S. government securities (Long-term)
|
—
|
—
|
||||||
Total
|
$
|
53,363,524
|
$
|
50,747,436
|
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.
|
|||||
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.
|
|||||
Rajeev Das
|
—
|
1 year;
|
Principal of Bulldog
|
1
|
Director, The
|
(55)
|
Since
|
Investors, LLP and Ryan
|
Mexico Equity &
|
||
2018
|
Heritage, LLP
|
Income Fund, 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
|
INDEPENDENT TRUSTEES
|
|||||
Gerald Hellerman
|
—
|
1 year;
|
Chief Compliance Officer
|
1
|
Trustee, Fiera
|
(84)
|
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
|
(54)
|
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).
|
|||||
Richard Dayan
|
—
|
1 year;
|
Owner of CactusTrading.
|
1
|
Director, Swiss
|
(79)
|
Since
|
Helvetia Fund, Inc.
|
|||
2018
|
|||||
Ben Harris
|
—
|
1 year;
|
Chief Executive Officer of Hormel
|
1
|
Director, Special
|
(54)
|
Since
|
Harris Investments, LLC; Principal
|
Opportunities
|
||
2018
|
of NBC Bancshares, LLC; Chief
|
Fund, Inc.
|
|||
Executive Officer of Crossroads
|
|||||
Capital, Inc.; Administrator of
|
|||||
Crossroads Liquidating Trust.
|
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
|
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.
|
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
|
September 1 – September 30, 2023
|
-
|
-
|
-
|
N/A
|
October 1 - October 31, 2023
|
-
|
-
|
-
|
N/A
|
November 1- November 30, 2023
|
-
|
-
|
-
|
N/A
|
December 1 – December 31, 2023
|
-
|
-
|
-
|
N/A
|
January 1 – January 31, 2024
|
-
|
-
|
-
|
N/A
|
February 1 – February 29, 2024
|
-
|
-
|
-
|
N/A
|
Total
|
-
|
-
|
-
|
N/A
|
(a)
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The Registrant’s President and Treasurer 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.
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(b)
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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)
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(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an
exhibit. Incorporated by reference to previous Form N-CSR filing.
|