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Share Name | Share Symbol | Market | Type |
---|---|---|---|
High Income Securities Fund | NYSE:PCF | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 6.69 | 50 | 09:00:01 |
(a)
|
|
Letter to Stockholders
|
1
|
Portfolio Composition
|
4
|
Portfolio of Investments
|
5
|
Statement of Assets and Liabilities
|
12
|
Statement of Operations
|
13
|
Statements of Changes
|
15
|
Financial Highlights
|
16
|
Notes to Financial Statements
|
18
|
Report of Independent Registered Public Accounting Firm
|
27
|
Privacy Policy
|
47
|
6 month
|
||||
Net assets value returns
|
(not annualized)
|
1 year
|
5 years
|
10 years
|
High Income Securities Fund
|
3.36%
|
4.82%
|
4.10%
|
5.17%
|
Market price returns
|
||||
High Income Securities Fund
|
5.66%
|
6.35%
|
3.42%
|
6.09%
|
Index returns
|
||||
ICE BofA Merrill Lynch 6 Month Treasury Bill Index
|
2.52%
|
4.34%
|
1.79%
|
1.21%
|
Share Price as of 8/31/2023
|
||||
Net asset value
|
|
|||
Market price
|
|
% of
|
||||||||||||
Value
|
Cost
|
Net Assets
|
||||||||||
Closed-End Funds
|
$
|
58,483,832
|
$
|
59,382,643
|
44.88
|
%
|
||||||
Business Development Companies
|
24,113,666
|
24,426,184
|
18.50
|
|||||||||
Special Purpose Acquisition Vehicles
|
17,049,496
|
16,570,265
|
13.08
|
|||||||||
Money Markets
|
15,908,699
|
15,908,699
|
12.21
|
|||||||||
Preferred Stocks
|
12,450,879
|
16,541,529
|
9.55
|
|||||||||
Other Common Stocks
|
1,337,076
|
1,988,330
|
1.03
|
|||||||||
Corporate Obligations
|
585,075
|
996,349
|
0.45
|
|||||||||
Liquidating Trust
|
294,580
|
324,231
|
0.23
|
|||||||||
Warrants
|
89,697
|
236,003
|
0.07
|
|||||||||
Rights
|
18,605
|
25,868
|
0.01
|
|||||||||
Total Investments
|
$
|
130,331,605
|
$
|
136,400,101
|
100.01
|
%
|
||||||
Liabilities in Excess of Other Assets
|
(15,948
|
)
|
(0.01
|
)
|
||||||||
Total Net Assets
|
$
|
130,315,657
|
100.00
|
%
|
(1)
|
As a percentage of net assets.
|
Country
|
% of Net Assets
|
|||
United States
|
92.01
|
%
|
||
Cayman Islands
|
7.54
|
%
|
||
Ireland
|
0.45
|
%
|
||
Canada
|
0.01
|
%
|
||
Virgin Islands (British)
|
0.00
|
%
|
||
Netherlands
|
0.00
|
%
|
||
100.01
|
%
|
|||
Liabilities in Excess of Other Assets
|
(0.01
|
)%
|
||
100.00
|
%
|
Shares
|
Value
|
|||||||
INVESTMENT COMPANIES—63.39%
|
||||||||
Business Development Companies—18.51%
|
||||||||
Barings BDC, Inc.
|
283,740
|
$
|
2,633,107
|
|||||
CION Investment Corp.
|
577,185
|
6,187,423
|
||||||
Crescent Capital BDC, Inc.
|
107,944
|
1,768,123
|
||||||
FS KKR Capital Corp.
|
374,220
|
7,656,541
|
||||||
Logan Ridge Finance Corp.
|
81,300
|
1,739,820
|
||||||
PennantPark Investment Corp.
|
41,601
|
275,399
|
||||||
PhenixFIN Corp. (a)
|
19,193
|
738,931
|
||||||
Portman Ridge Finance Corp.
|
157,289
|
3,114,322
|
||||||
24,113,666
|
||||||||
Closed-End Funds—44.88%
|
||||||||
Aberdeen Asia-Pacific Income Fund, Inc. (b)
|
92,344
|
241,941
|
||||||
Aberdeen Global Dynamic Dividend
|
46,058
|
424,655
|
||||||
Apollo Tactical Income Fund, Inc.
|
147,041
|
1,945,352
|
||||||
Bancroft Fund Ltd.
|
9,317
|
157,644
|
||||||
BlackRock California Municipal Income Trust
|
197,371
|
2,255,951
|
||||||
Blackrock ESG Capital Allocation Trust
|
285,700
|
4,425,494
|
||||||
BlackRock Innovation and Growth Term Trust
|
31,988
|
246,627
|
||||||
Blackstone Strategic Credit Fund
|
70,827
|
782,638
|
||||||
BNY Mellon Municipal Income, Inc.
|
256,700
|
1,573,571
|
||||||
BNY Mellon Strategic Municipal Bond Fund, Inc.
|
152,427
|
826,154
|
||||||
Carlyle Credit Income Fund
|
185,690
|
1,470,665
|
||||||
Center Coast Brookfield MLP & Energy Infrastructure Fund
|
145,466
|
3,108,608
|
||||||
Credit Suisse High Yield Bond Fund
|
449,324
|
844,729
|
||||||
Destra Multi-Alternative Fund
|
131,284
|
790,330
|
||||||
DWS Municipal Income Trust
|
100,962
|
845,052
|
||||||
DWS Strategic Municipal Income Trust
|
73,771
|
601,234
|
||||||
Eaton Vance New York Municipal Bond Fund
|
238,267
|
2,230,179
|
||||||
Ellsworth Growth and Income Fund Ltd.
|
62,496
|
540,590
|
||||||
Federated Hermes Premier Municipal Income Fund
|
2,970
|
30,621
|
||||||
First Trust Dynamic Europe Equity Income Fund
|
516,564
|
6,751,490
|
||||||
First Trust High Yield Opportunities 2027 Term Fund
|
21,987
|
302,321
|
||||||
First Trust MLP and Energy Income Fund
|
9,498
|
77,124
|
||||||
Highland Income Fund
|
377,424
|
3,091,103
|
||||||
Invesco High Income 2024 Target Term Fund
|
892
|
6,351
|
||||||
MFS High Yield Municipal Trust
|
848,991
|
2,835,630
|
Shares
|
Value
|
|||||||
INVESTMENT COMPANIES—(continued)
|
||||||||
Closed-End Funds—(continued)
|
||||||||
MFS Investment Grade Municipal Trust
|
89,961
|
$
|
675,607
|
|||||
Morgan Stanley Emerging Markets Debt Fund, Inc.
|
217,283
|
1,447,105
|
||||||
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.
|
44,264
|
208,041
|
||||||
Neuberger Berman New York Municipal Fund, Inc.
|
30,831
|
285,958
|
||||||
Neuberger Berman Next Generation Connectivity Fund, Inc.
|
357,757
|
3,845,888
|
||||||
New America High Income Fund, Inc.
|
123,071
|
841,806
|
||||||
Nuveen Floating Rate Income Fund
|
328,824
|
2,660,186
|
||||||
Nuveen Multi-Asset Income Fund
|
20,588
|
243,350
|
||||||
NXG NextGen Infrastructure Income Fund
|
64,346
|
2,316,456
|
||||||
PGIM Global High Yield Fund, Inc.
|
176,072
|
1,975,528
|
||||||
Principal Real Estate Income Fund
|
68,736
|
651,617
|
||||||
Saba Capital Income & Opportunities Fund
|
339,736
|
2,683,914
|
||||||
Templeton Global Income Fund
|
103,434
|
426,148
|
||||||
Tortoise Energy Independence Fund, Inc.
|
43,139
|
1,343,780
|
||||||
Tortoise Power and Energy Infrastructure Fund, Inc.
|
78,672
|
1,082,527
|
||||||
Virtus Total Return Fund, Inc.
|
229,410
|
1,289,284
|
||||||
Western Asset Intermediate Muni Fund, Inc.
|
13,483
|
100,583
|
||||||
58,483,832
|
||||||||
Total Investment Companies (Cost $83,808,827)
|
82,597,498
|
|||||||
Shares/Units
|
||||||||
SPECIAL PURPOSE ACQUISITION VEHICLES—13.07%
|
||||||||
Alpha Partners Technology Merger Corp. (a)(e)
|
22,776
|
240,059
|
||||||
Alphatime Acquisition Corp. (a)(e)
|
35,000
|
369,250
|
||||||
AltC Acquisition Corp. (a)
|
50,000
|
518,000
|
||||||
AP Acquisition Corp. (a)(e)
|
50,000
|
545,000
|
||||||
Apollo Strategic Growth Capital II (a)(e)
|
31,848
|
333,767
|
||||||
Arrowroot Acquisition Corp. (a)
|
8,870
|
93,816
|
||||||
Cartesian Growth Corp. II (a)(e)
|
214,910
|
2,308,133
|
||||||
Chenghe Acquisition Co. (a)(e)
|
6,576
|
71,087
|
||||||
Churchill Capital Corp. VI (a)
|
34,700
|
360,880
|
||||||
Churchill Capital Corp. VII (a)
|
58,805
|
613,336
|
||||||
Compass Digital Acquisition Corp. (a)(e)
|
48,437
|
506,651
|
||||||
Concord Acquisition Corp II (a)
|
16,612
|
169,442
|
||||||
Enphys Acquisition Corp. (a)(e)
|
11,300
|
118,198
|
Shares/Units
|
Value
|
|||||||
SPECIAL PURPOSE ACQUISITION VEHICLES—(continued)
|
||||||||
EVe Mobility Acquisition Corp. (a)(e)
|
40,963
|
$
|
436,666
|
|||||
Forbion European Acquisition Corp. (a)(e)
|
99,999
|
1,088,989
|
||||||
Forbion European Acquisition Corp. (a)(e)
|
1
|
11
|
||||||
Gores Holdings IX, Inc. (a)
|
54,830
|
567,216
|
||||||
Live Oak Crestview Climate Acquisition Corp. (a)
|
91,436
|
944,534
|
||||||
M3-Brigade Acquisition III Corp. (a)
|
196,075
|
2,001,926
|
||||||
Pearl Holdings Acquisition Corp. (a)(e)
|
42,865
|
456,512
|
||||||
Pono Capital Three, Inc. (a)(e)
|
16,038
|
170,805
|
||||||
Screaming Eagle Acquisition Corp. (a)(e)
|
195,348
|
2,033,573
|
||||||
SDCL EDGE Acquisition Corp. (a)(e)
|
41,679
|
439,297
|
||||||
SILVERspac, Inc. (a)(e)
|
16,518
|
172,613
|
||||||
SK Growth Opportunities Corp. (a)(e)
|
3,615
|
38,644
|
||||||
TG Venture Acquisition Corp. (a)
|
190,793
|
2,026,222
|
||||||
Waverley Capital Acquisition Corp 1 (a)(c)(e)
|
40,971
|
424,869
|
||||||
Total Special Purpose Acquisition Vehicles (Cost $16,570,265)
|
17,049,496
|
|||||||
Shares
|
||||||||
OTHER COMMON STOCKS—1.03%
|
||||||||
Real Estate Investment Trusts—1.03%
|
||||||||
NexPoint Diversified Real Estate Trust
|
141,340
|
1,337,076
|
||||||
Total Other Common Stocks (Cost $1,988,330)
|
1,337,076
|
|||||||
PREFERRED STOCKS—9.55%
|
||||||||
Business Development Companies—4.54%
|
||||||||
OFS Credit Co, Inc., 5.250%
|
60,000
|
1,321,200
|
||||||
SuRo Capital Corp., 6.000%
|
200,000
|
4,592,001
|
||||||
5,913,201
|
||||||||
Closed-End Funds—1.52%
|
||||||||
XAI Octagon Floating Rate Alternative Income Term Trust, 6.500%
|
80,000
|
1,981,224
|
||||||
Metal Processors & Fabrication—0.67%
|
||||||||
Steel Partners Holdings LP, 6.000%
|
37,347
|
872,799
|
||||||
Real Estate Investment Trusts—2.09%
|
||||||||
Brookfield DTLA Fund Office Trust Investor, Inc., 7.625% (a)
|
1,615
|
323
|
||||||
Cedar Realty Trust, Inc.—Series C, 6.500%
|
101,456
|
1,268,200
|
||||||
NexPoint Diversified Real Estate Trust—Series A, 5.500%
|
94,082
|
1,461,093
|
||||||
2,729,616
|
||||||||
Real Estate Operations and Development—0.47%
|
||||||||
Harbor Custom Development, Inc—Series A, 8.000%
|
131,166
|
616,480
|
Shares
|
Value
|
|||||||
PREFERRED STOCKS—(continued)
|
||||||||
Retail—Catalog Shopping—0.02%
|
||||||||
iMedia Brands, Inc., 8.500% (c)
|
27,802
|
$
|
27,246
|
|||||
67Transactional Software—0.24%
|
||||||||
Synchronoss Technologies, Inc., 8.375%
|
16,957
|
310,313
|
||||||
Total Preferred Stocks (Cost $16,541,529)
|
12,450,879
|
|||||||
LIQUIDATING TRUSTS—0.23%
|
||||||||
Copper Property CTL Pass Through Trust
|
26,780
|
294,580
|
||||||
Total Liquidating Trusts (Cost $324,231)
|
294,580
|
|||||||
Principal Amount
|
||||||||
CORPORATE OBLIGATIONS—0.45%
|
||||||||
Lamington Road DAC
|
||||||||
8.000%, 04/07/2121 (c)(d)(e)
|
$
|
8,072,998
|
322,920
|
|||||
9.750%, 04/07/2121 (c)(d)(e)
|
505,115
|
262,155
|
||||||
Total Corporate Obligations (Cost $996,349)
|
585,075
|
|||||||
Shares
|
||||||||
RIGHTS—0.01% (a)
|
||||||||
Lakeshore Acquisition II Corp. (Expiration: November 18, 2026) (a)(e)
|
59,500
|
11,829
|
||||||
Nocturne Acquisition Corp. (Expiration: December 26, 2025) (a)(e)
|
40,000
|
6,776
|
||||||
Total Rights (Cost $25,868)
|
18,605
|
|||||||
WARRANTS—0.07% (a)
|
||||||||
AGBA Group Holding Ltd. (a)(e)
|
||||||||
Expiration: March 2027
|
||||||||
Exercise Price: $11.50
|
36,750
|
1,430
|
||||||
Andretti Acquisition Corp. (a)(e)
|
||||||||
Expiration: March 2028
|
||||||||
Exercise Price: $11.50
|
25,000
|
5,998
|
||||||
Ault Disruptive Technologies Corp. (a)
|
||||||||
Expiration: June 2028
|
||||||||
Exercise Price: $11.50
|
48,000
|
576
|
||||||
BioPlus Acquisition Corp. (a)(e)
|
||||||||
Expiration: December 2026
|
||||||||
Exercise Price: $11.50
|
37,500
|
5,250
|
||||||
Cartesian Growth Corp. II (a)(e)
|
||||||||
Expiration: July 2028
|
||||||||
Exercise Price: $11.50
|
33,333
|
4,860
|
Shares
|
Value
|
|||||||
WARRANTS—(continued)
|
||||||||
Churchill Capital Corp. VI (a)
|
||||||||
Expiration: February 2026
|
||||||||
Exercise Price: $11.50
|
6,940
|
$
|
1,120
|
|||||
Churchill Capital Corp. VII (a)
|
||||||||
Expiration: February 2028
|
||||||||
Exercise Price: $11.50
|
11,761
|
2,823
|
||||||
Digital Health Acquisition Corp. (a)
|
||||||||
Expiration: November 2026
|
||||||||
Exercise Price: $11.50
|
84,000
|
1,394
|
||||||
ExcelFin Acquisition Corp. (a)
|
||||||||
Expiration: October 2028
|
||||||||
Exercise Price: $11.50
|
25,000
|
1,075
|
||||||
Forbion European Acquisition Corp. (a)(e)
|
||||||||
Expiration: December 2026
|
||||||||
Exercise Price: $11.50
|
33,333
|
19,999
|
||||||
Global Systems Dynamics, Inc. (a)
|
||||||||
Expiration: April 2026
|
||||||||
Exercise Price: $11.50
|
25,200
|
756
|
||||||
HNR Acquisition Corp. (a)
|
||||||||
Expiration: February 2026
|
||||||||
Exercise Price: $11.50
|
37,000
|
2,590
|
||||||
Lakeshore Acquisition II Corp. (a)(e)
|
||||||||
Expiration: November 2026
|
||||||||
Exercise Price: $11.50
|
29,750
|
452
|
||||||
LAMF Global Ventures Corp. I (a)(e)
|
||||||||
Expiration: November 2026
|
||||||||
Exercise Price: $11.50
|
25,000
|
1,750
|
||||||
Landcadia Holdings IV, Inc. (a)
|
||||||||
Expiration: March 2028
|
||||||||
Exercise Price: $11.50
|
12,500
|
1,688
|
||||||
Leo Holdings Corp II (a)(e)
|
||||||||
Expiration: January 2028
|
||||||||
Exercise Price: $11.50
|
5,250
|
27
|
||||||
LIV Capital Acquisition Corp II (a)(e)
|
||||||||
Expiration: February 2027
|
||||||||
Exercise Price: $11.50
|
41,625
|
945
|
||||||
M3-Brigade Acquisition III Corp. (a)
|
||||||||
Expiration: July 2028
|
||||||||
Exercise Price: $11.50
|
33,444
|
16,721
|
Shares
|
Value
|
|||||||
WARRANTS—(continued)
|
||||||||
Murphy Canyon Acquisition Corp. (a)
|
||||||||
Expiration: January 2027
|
||||||||
Exercise Price: $11.50
|
55,500
|
$
|
7,143
|
|||||
Northern Star Investment Corp. III (a)
|
||||||||
Expiration: February 2028
|
||||||||
Exercise Price: $11.50
|
7,666
|
51
|
||||||
OPY Acquisition Corp I (a)
|
||||||||
Expiration: September 2026
|
||||||||
Exercise Price: $11.50
|
50,000
|
1,655
|
||||||
Quantum FinTech Acquisition Corp. (a)
|
||||||||
Expiration: January 2026
|
||||||||
Exercise Price: $11.50
|
33,000
|
403
|
||||||
Relativity Acquisition Corp. (a)(c)
|
||||||||
Expiration: December 2029
|
||||||||
Exercise Price: $11.50
|
21,700
|
—
|
||||||
Screaming Eagle Acquisition Corp. (a)(e)
|
||||||||
Expiration: January 2027
|
||||||||
Exercise Price: $11.50
|
33,333
|
6,333
|
||||||
Seaport Global Acquisition II Corp. (a)
|
||||||||
Expiration: November 2026
|
||||||||
Exercise Price: $11.50
|
50,000
|
2,250
|
||||||
Signa Sports United NV (a)(e)
|
||||||||
Expiration: December 2026
|
||||||||
Exercise Price: $11.50
|
10,731
|
429
|
||||||
Target Global Acquisition I Corp. (a)(e)
|
||||||||
Expiration: December 2026
|
||||||||
Exercise Price: $11.50
|
23,633
|
1,017
|
||||||
TG Venture Acquisition Corp. (a)
|
||||||||
Expiration: August 2028
|
||||||||
Exercise Price: $11.50
|
74,000
|
962
|
||||||
Total Warrants (Cost $236,003)
|
89,697
|
Shares
|
Value
|
|||||||
MONEY MARKET FUNDS—12.22%
|
||||||||
Fidelity Investments Money Market Funds—Government Portfolio, 5.201% (b)
|
7,954,350
|
$
|
7,954,349
|
|||||
STIT—Treasury Portfolio, 5.260% (b)
|
7,954,350
|
7,954,350
|
||||||
Total Money Market Funds (Cost $15,908,699)
|
15,908,699
|
|||||||
Total Investments (Cost $136,400,101)—100.02%
|
130,331,605
|
|||||||
Liabilities in Excess of Other Assets—(0.02%)
|
(22,850
|
)
|
||||||
TOTAL NET ASSETS—100.00%
|
$
|
130,308,755
|
(a)
|
Non-income producing security.
|
(b)
|
The rate shown represents the 7-day yield at August 31, 2023.
|
(c)
|
Fair valued securities. The total market value of these securities was $1,037,190, representing 0.80% of net assets. Value determined using significant unobservable inputs.
|
(d)
|
The coupon rate shown represents the rate at August 31, 2023.
|
(e)
|
Foreign-issued security.
|
BDC
|
Business Development Company.
|
LTD.
|
Limited Liability Company.
|
Assets:
|
||||
Investments, at value (Cost $136,400,101)
|
$
|
130,331,605
|
||
Cash
|
10,232
|
|||
Dividends and interest receivable
|
451,799
|
|||
Receivable for investments sold
|
333,393
|
|||
Other assets
|
25,196
|
|||
Total assets
|
131,152,225
|
|||
Liabilities:
|
||||
Expenses and fees:
|
||||
Investments purchased
|
679,307
|
|||
Audit
|
37,940
|
|||
Legal
|
36,904
|
|||
Investment committee
|
31,250
|
|||
Officers
|
15,000
|
|||
Custody
|
12,333
|
|||
Registration
|
11,459
|
|||
Administration
|
11,440
|
|||
Chief Compliance Officer
|
6,000
|
|||
Other accrued expenses
|
1,837
|
|||
Total liabilities
|
843,470
|
|||
Net assets
|
$
|
130,308,755
|
||
Net assets consist of:
|
||||
Paid-in Capital (Unlimited shares authorized)
|
$
|
138,417,061
|
||
Accumulated deficit
|
(8,108,306
|
)
|
||
Net assets
|
$
|
130,308,755
|
||
Net asset value per share ($130,308,755 applicable to
|
||||
|
$
|
|
For the year ended
|
||||
August 31, 2023
|
||||
Investment income:
|
||||
Dividends
|
$
|
6,749,691
|
||
Interest
|
864,794
|
|||
Total investment income
|
7,614,485
|
|||
Expenses and Fees:
|
||||
Investment Committee
|
375,000
|
|||
Trustees’
|
283,148
|
|||
Administration
|
140,390
|
|||
Officers
|
90,000
|
|||
Compliance
|
73,630
|
|||
Reports and notices to shareholders
|
62,774
|
|||
Audit
|
39,159
|
|||
Registration
|
37,485
|
|||
Transfer agency
|
35,408
|
|||
Insurance
|
28,924
|
|||
Legal
|
28,250
|
|||
Custody
|
22,280
|
|||
Other
|
20,314
|
|||
Accounting
|
4,430
|
|||
Total expenses
|
1,241,192
|
|||
Net investment income
|
6,373,293
|
|||
Net realized and unrealized loss from investment activities:
|
||||
Net realized loss from:
|
||||
Net realized loss from investments
|
(1,362,709
|
)
|
||
Net realized loss
|
(1,362,709
|
)
|
||
Change in net unrealized depreciation on investments
|
886,635
|
|||
Net realized and unrealized loss from investment activities
|
(476,074
|
)
|
||
Increase in net assets resulting from operations
|
$
|
5,897,219
|
For the
|
For the
|
|||||||
year ended
|
year ended
|
|||||||
August 31, 2023
|
August 31, 2022
|
|||||||
From operations:
|
||||||||
Net investment income
|
$
|
6,373,293
|
$
|
5,111,572
|
||||
Net realized gain (loss) on investments
|
(1,362,709
|
)
|
5,260,182
|
|||||
Net unrealized depreciation on investments
|
886,635
|
(13,481,870
|
)
|
|||||
Net increase (decrease) in net assets resulting from operations
|
5,897,219
|
(3,110,116
|
)
|
|||||
Distributions paid to shareholders:
|
||||||||
Distributions
|
(6,973,091
|
)
|
(10,562,686
|
)
|
||||
Return of capital
|
(6,616,524
|
)
|
(3,889,965
|
)
|
||||
Total dividends and distributions paid to shareholders
|
(13,589,615
|
)
|
(14,452,651
|
)
|
||||
Capital Stock Transactions (Note 5)
|
||||||||
Issuance of common stock through rights offering
|
—
|
67,236,052
|
||||||
Total capital stock transactions
|
—
|
67,236,052
|
||||||
Net increase (decrease) in net assets
|
||||||||
applicable to common shareholders
|
(7,692,396
|
)
|
49,673,285
|
|||||
Net assets applicable to common shareholders:
|
||||||||
Beginning of year
|
$
|
138,001,151
|
$
|
88,327,866
|
||||
End of year
|
$
|
130,308,755
|
$
|
138,001,151
|
||||
Number of Fund Shares
|
||||||||
Shares outstanding at beginning of year
|
|
|
||||||
Shares issued
|
—
|
8,042,590
|
||||||
Shares outstanding at end of year
|
|
|
(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).
|
For the years ended August 31,
|
||||||||||||||||||
2023
|
2022
|
2021
|
2020
|
2019
|
||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||
0.36
|
0.31
|
0.21
|
0.38
|
0.13
|
||||||||||||||
(0.02
|
)
|
(0.43
|
)
|
2.01
|
(0.32
|
)
|
0.01
|
|||||||||||
0.34
|
(0.12
|
)
|
2.22
|
0.06
|
0.14
|
|||||||||||||
(0.40
|
)
|
(0.34
|
)
|
(0.33
|
)
|
(0.34
|
)
|
(0.05
|
)
|
|||||||||
—
|
(0.32
|
)
|
(0.43
|
)
|
(0.05
|
)
|
(0.41
|
)
|
||||||||||
(0.38
|
)
|
(0.24
|
)
|
(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
|
%
|
-19.66
|
%
|
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
|
%
|
74
|
%
|
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
|
$
|
24,113,666
|
$
|
—
|
$
|
—
|
$
|
24,113,666
|
||||||||
Closed-End Funds
|
58,483,832
|
—
|
—
|
58,483,832
|
||||||||||||
Special Purpose Acquisition Vehicles
|
13,101,522
|
3,523,105
|
424,869
|
17,049,496
|
||||||||||||
Other Common Stocks
|
||||||||||||||||
Real Estate Investment Trusts
|
1,337,076
|
—
|
—
|
1,337,076
|
||||||||||||
Preferred Stocks
|
||||||||||||||||
Business Development Companies
|
5,913,201
|
—
|
—
|
5,913,201
|
||||||||||||
Closed-End Funds
|
1,981,224
|
—
|
—
|
1,981,224
|
||||||||||||
Metal Processors & Fabrication
|
872,799
|
—
|
—
|
872,799
|
||||||||||||
Real Estate Investment Trusts
|
2,729,616
|
—
|
—
|
2,729,616
|
||||||||||||
Real Estate Operations
|
||||||||||||||||
and Development
|
616,480
|
—
|
—
|
616,480
|
||||||||||||
Retail—Catalog Shopping
|
—
|
—
|
27,246
|
27,246
|
||||||||||||
Transactional Software
|
310,313
|
—
|
—
|
310,313
|
||||||||||||
Liquidating Trusts
|
294,580
|
—
|
—
|
294,580
|
||||||||||||
Corporate Obligations
|
—
|
—
|
585,075
|
585,075
|
||||||||||||
Rights
|
11,829
|
6,776
|
—
|
18,605
|
||||||||||||
Warrants
|
79,233
|
10,464
|
—
|
89,697
|
||||||||||||
Money Market Funds
|
15,908,699
|
—
|
—
|
15,908,699
|
||||||||||||
Total
|
$
|
125,754,070
|
$
|
3,540,345
|
$
|
1,037,190
|
$
|
130,331,605
|
Derivatives not accounted
|
Statement of Assets &
|
|
for as hedging instruments
|
Liabilities Location
|
Value
|
Equity Contracts—Warrants
|
Investments, at value
|
$89,697
|
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
|
$(196,805)
|
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
|
$194,399
|
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)
|
$
|
64,249,068
|
$
|
78,622,618
|
||||
U.S. government securities (Long-term)
|
—
|
—
|
||||||
Total
|
$
|
64,249,068
|
$
|
78,622,618
|
TAIT, WELLER & BAKER LLP
|
Trustee Nominee
|
Votes For
|
Votes Against
|
Votes Withheld
|
Ben H. Harris
|
11,405,967
|
788,456
|
258,389
|
Richard Dayan
|
11,374,105
|
812,684
|
266,023
|
Moritz Sell
|
11,372,476
|
813,354
|
266,983
|
Gerald Hellerman
|
11,365,654
|
829,129
|
258,029
|
Andrew Dakos
|
10,348,792
|
801,651
|
1,302,370
|
Phillip Golstein
|
10,343,513
|
804,869
|
1,304,430
|
Rajeev Das
|
10,317,901
|
824,494
|
1,310,417
|
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
|
(56)
|
as of
|
Since
|
LLP since 2009; Principal of
|
DTLA Fund Office
|
|
July 2018.
|
2018
|
the former general partner of
|
Trust Investor, Inc.;
|
||
several private investment
|
Director, Emergent
|
||||
partnerships in the Bulldog
|
Capital, Inc. (until
|
||||
Investors group of private funds.
|
2017); Trustee,
|
||||
Crossroads
|
|||||
Liquidating Trust
|
|||||
(until 2020);
|
|||||
Director, Special
|
|||||
Opportunities
|
|||||
Fund, Inc.;
|
|||||
Chairman, Swiss
|
|||||
Helvetia Fund, Inc.
|
|||||
Phillip Goldstein***
|
Secretary
|
1 year;
|
Partner – Bulldog Investors,
|
1
|
Chairman, The
|
(77)
|
as of
|
Since
|
LLP since 2009; Principal of
|
Mexico Equity and
|
|
July 2018.
|
2018
|
the former general partner of
|
Income Fund, Inc.;
|
||
several private investment
|
Chairman, Special
|
||||
partnerships in the Bulldog
|
Opportunities
|
||||
Investors group of private funds.
|
Fund, Inc.; Director,
|
||||
Brookfield DTLA
|
|||||
Fund Office Trust
|
|||||
Investor Inc.;
|
|||||
Director, MVC
|
|||||
Capital, Inc.
|
|||||
(until 2020);
|
|||||
Trustee, Crossroads
|
|||||
Liquidating Trust
|
|||||
(until 2020);
|
|||||
Director, Swiss
|
|||||
Helvetia Fund, Inc.;
|
|||||
Chairman,
|
|||||
Emergent Capital,
|
|||||
Inc. (until 2017).
|
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
|
(53)
|
Since
|
Investors, LLP
|
Mexico Equity &
|
||
2018
|
Income Fund, Inc.
|
||||
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).
|
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
|
Richard Dayan
|
—
|
1 year;
|
Owner of CactusTrading.
|
1
|
Director, Swiss
|
(79)
|
Since
|
Helvetia Fund, Inc.
|
|||
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.
|
|||||
OFFICERS
|
|||||
Andrew Dakos***
|
President
|
1 year;
|
Partner – Bulldog Investors,
|
n/a
|
n/a
|
(56)
|
as of
|
Since
|
LLP; Principal of the former
|
||
July 2018.
|
2018
|
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
|
(53)
|
as of
|
Since
|
Bulldog Investors, LLP.
|
||
July 2018.
|
2018
|
||||
Phillip Goldstein***
|
Secretary
|
1 year;
|
Partner – Bulldog Investors,
|
n/a
|
n/a
|
(77)
|
as of
|
Since
|
LLP; Principal of the former
|
||
July 2018.
|
2018
|
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
|
(52)
|
Compliance
|
Since
|
Compliance Officer of Bulldog
|
||
Officer
|
2018
|
Investors, LLP; Chief Compliance
|
|||
as of
|
Officer of Swiss Helvetia Fund,
|
||||
July 2018.
|
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 8/31/2023
|
FYE 8/31/2022
|
|
Audit Fees
|
$32,500
|
$32,500
|
Audit-Related Fees
|
$2,000
|
$2,000
|
Tax Fees
|
$3,400
|
$3,400
|
All Other Fees
|
$-
|
$-
|
FYE 8/31/2023
|
FYE 8/31/2022
|
|
Audit-Related Fees
|
0%
|
0%
|
Tax Fees
|
0%
|
0%
|
All Other Fees
|
0%
|
0%
|
Non-Audit Related Fees
|
FYE 8/31/2023
|
FYE 8/31/2022
|
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.
|
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, 2023
|
-
|
-
|
-
|
N/A
|
April 1 - April 30, 2023
|
-
|
-
|
-
|
N/A
|
May 1- May 31, 2023
|
-
|
-
|
-
|
N/A
|
June 1 – June 30, 2023
|
-
|
-
|
-
|
N/A
|
July 1 – July 31, 2023
|
-
|
-
|
-
|
N/A
|
August 1 – August 31, 2023
|
-
|
-
|
-
|
N/A
|
Total
|
-
|
-
|
-
|
N/A
|
(a)
|
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.
|
(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.
|
(4)
|
There was no change in the registrant’s independent public accountant for the period covered by this report.
|
1.
|
I have reviewed this report on Form N-CSR of High Income Securities Fund;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if
the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over
financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the
filing date of this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the
registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and
report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: November 8, 2023
|
/s/Andrew Dakos
Andrew Dakos President |
1.
|
I have reviewed this report on Form N-CSR of High Income Securities Fund;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if
the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over
financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the
filing date of this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the
registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and
report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: November 8, 2023
|
/s/Thomas Antonucci
Thomas Antonucci Treasurer |
/s/Andrew Dakos
Andrew Dakos
President, High Income Securities Fund
|
/s/Thomas Antonucci
Thomas Antonucci
Treasurer, High Income Securities Fund
|
Dated: November 8, 2023
|
Distribution Estimates
|
September 2022
|
Fiscal Year-to-date (YTD)1
|
||
Source
|
Per Share
Amount
|
Percent of
Current
Distribution
|
Per Share
Amount
|
Percent of Fiscal
Year
Distributions
|
Net Investment Income
|
$0.0350
|
48.61%
|
$0.0350
|
48.61%
|
Net Realized Short-Term Capital Gains
|
$0.0000
|
0.00%
|
$0.0000
|
0.00%
|
Net Realized Long-Term Capital Gains
|
$0.0000
|
0.00%
|
$0.0000
|
0.00%
|
Return of Capital
|
$0.0380
|
51.39%
|
$0.0380
|
51.39%
|
Total Distribution
|
$0.0730
|
100.00%
|
$0.0730
|
100.00%
|
Average Annual Total Return for the 5-year period ended
on August 31, 20222
|
4.13%
|
Current Annualized Distribution Rate (current fiscal
year)3
|
11.39%
|
Current Fiscal Year Cumulative Total Return4
|
-6.05%
|
Cumulative Distribution Rate (current fiscal year)5
|
11.39%
|
Distribution Estimates
|
October 2022
|
Fiscal Year-to-date (YTD)1
|
||
Source
|
Per Share
Amount
|
Percent of
Current
Distribution
|
Per Share
Amount
|
Percent of Fiscal
Year
Distributions
|
Net Investment Income
|
$0.032
|
43.48%
|
$0.067
|
46.05%
|
Net Realized Short-Term Capital Gains
|
$0.000
|
0.00%
|
$0.000
|
0.00%
|
Net Realized Long-Term Capital Gains
|
$0.000
|
0.00%
|
$0.000
|
0.00%
|
Return of Capital
|
$0.041
|
56.52%
|
$0.079
|
53.95%
|
Total Distribution
|
$0.0730
|
100.00%
|
$0.146
|
100.00%
|
Average Annual Total Return for the 5-year period ended
on September 30, 20222
|
2.25%
|
Current Annualized Distribution Rate (current fiscal
year)3
|
12.13%
|
Current Fiscal Year Cumulative Total Return4
|
-7.38%
|
Cumulative Distribution Rate (current fiscal year)5
|
1.01%
|
Distribution Estimates
|
November 2022
|
Fiscal Year-to-date (YTD)1
|
||
Source
|
Per Share
Amount
|
Percent of
Current
Distribution
|
Per Share
Amount
|
Percent of Fiscal
Year
Distributions
|
Net Investment Income
|
$0.027
|
37.30%
|
$0.094
|
43.13%
|
Net Realized Short-Term Capital Gains
|
$0.000
|
0.00%
|
$0.000
|
0.00%
|
Net Realized Long-Term Capital Gains
|
$0.000
|
0.00%
|
$0.000
|
0.00%
|
Return of Capital
|
$0.046
|
62.70%
|
$0.125
|
56.87%
|
Total Distribution
|
$0.0730
|
100.00%
|
$0.219
|
100.00%
|
Average Annual Total Return for the 5-year period
ended on October 31, 20222
|
2.34%
|
Current Annualized Distribution Rate (current fiscal
year)3
|
12.03%
|
Current Fiscal Year Cumulative Total Return4
|
-5.66%
|
Cumulative Distribution Rate (current fiscal year)5
|
2.01%
|
Distribution Estimates
|
December 2022
|
Fiscal Year-to-date (YTD)1
|
||
Source
|
Per Share
Amount
|
Percent of
Current
Distribution
|
Per Share
Amount
|
Percent of Fiscal
Year
Distributions
|
Net Investment Income
|
$0.071
|
97.29%
|
$0.165
|
56.67%
|
Net Realized Short-Term Capital Gains
|
$0.000
|
0.00%
|
$0.000
|
0.00%
|
Net Realized Long-Term Capital Gains
|
$0.000
|
0.00%
|
$0.000
|
0.00%
|
Return of Capital
|
$0.002
|
2.71%
|
$0.127
|
43.33%
|
Total Distribution
|
$0.0730
|
100.00%
|
$0.292
|
100.00%
|
Average Annual Total Return for the 5-year period
ended on November 30, 20222
|
3.16%
|
Current Annualized Distribution Rate (current
fiscal year)3
|
11.66%
|
Current Fiscal Year Cumulative Total Return4
|
-1.71%
|
Cumulative Distribution Rate (current fiscal year)5
|
2.92%
|
Distribution Estimates
|
January 2023
|
Fiscal Year-to-date (YTD)1
|
||
Source
|
Per Share
Amount
|
Percent of
Current
Distribution
|
Per Share
Amount
|
Percent of Fiscal
Year
Distributions
|
Net Investment Income
|
$0.0435
|
72.03%
|
$0.2090
|
59.30%
|
Net Realized Short-Term Capital Gains
|
$0.0000
|
0.00%
|
$0.0000
|
0.00%
|
Net Realized Long-Term Capital Gains
|
$0.0000
|
0.00%
|
$0.0000
|
0.00%
|
Return of Capital
|
$0.0169
|
27.97%
|
$0.1434
|
40.70%
|
Total Distribution
|
$0.0604
|
100.00%
|
$0.3524
|
100.00%
|
Average Annual Total Return for the 5-year period
ended on December 31, 20222
|
2.67%
|
Current Annualized Distribution Rate (current
fiscal year)3
|
12.08%
|
Current Fiscal Year Cumulative Total Return4
|
-4.15%
|
Cumulative Distribution Rate (current fiscal
year)5
|
4.03%
|
Distribution Estimates
|
February 2023
|
Fiscal Year-to-date (YTD)1
|
||
Source
|
Per Share
Amount
|
Percent of
Current
Distribution
|
Per Share
Amount
|
Percent of Fiscal
Year
Distributions
|
Net Investment Income
|
$0.0230
|
38.05%
|
$0.2320
|
56.19%
|
Net Realized Short-Term Capital Gains
|
$0.0000
|
0.00%
|
$0.0000
|
0.00%
|
Net Realized Long-Term Capital Gains
|
$0.0000
|
0.00%
|
$0.0000
|
0.00%
|
Return of Capital
|
$0.0374
|
61.95%
|
$0.1808
|
43.81%
|
Total Distribution
|
$0.0604
|
100.00%
|
$0.4128
|
100.00%
|
Average Annual Total Return for the 5-year
period ended on January 31, 20232
|
3.52%
|
Current Annualized Distribution Rate (current
fiscal year)3
|
10.19%
|
Current Fiscal Year Cumulative Total Return4
|
5.81%
|
Cumulative Distribution Rate (current fiscal
year)5
|
4.63%
|
Distribution Estimates
|
March 2023
|
Fiscal Year-to-date
(YTD)1
|
||
Source
|
Per Share
Amount
|
Percent of
Current
Distribution
|
Per Share
Amount
|
Percent of Fiscal
Year
Distributions
|
Net Investment Income
|
$0.0446
|
73.86%
|
$0.2766
|
58.45%
|
Net Realized Short-Term Capital Gains
|
$0.0087
|
14.51%
|
$0.0000
|
0.00%
|
Net Realized Long-Term Capital Gains
|
$0.0037
|
6.07%
|
$0.0000
|
0.00%
|
Return of Capital
|
$0.0034
|
5.56%
|
$0.1966
|
41.55%
|
Total Distribution
|
$0.0604
|
100.00%
|
$0.4732
|
100.00%
|
Average Annual Total Return for the 5-year
period ended on February 28, 20232
|
3.80%
|
Current Annualized Distribution Rate (current
fiscal year)3
|
10.27%
|
Current Fiscal Year Cumulative Total Return4
|
5.81%
|
Cumulative Distribution Rate (current fiscal
year)5
|
5.47%
|
Distribution Estimates
|
April 2023
|
Fiscal Year-to-date
(YTD)1
|
||
Source
|
Per Share
Amount
|
Percent of
Current
Distribution
|
Per Share
Amount
|
Percent of Fiscal
Year
Distributions
|
Net Investment Income
|
$0.0446
|
73.74%
|
$0.3211
|
60.18%
|
Net Realized Short-Term Capital Gains
|
$0.0009
|
1.55%
|
$0.0000
|
0.00%
|
Net Realized Long-Term Capital Gains
|
$0.0023
|
3.87%
|
$0.0000
|
0.00%
|
Return of Capital
|
$0.0126
|
20.83%
|
$0.2125
|
39.82%
|
Total Distribution
|
$0.0604
|
100.00%
|
$0.4732
|
100.00%
|
Average Annual Total Return for the 5-year
period ended on March 31, 20232
|
3.57%
|
Current Annualized Distribution Rate
(current fiscal year)3
|
10.46%
|
Current Fiscal Year Cumulative Total Return4
|
0.37%
|
Cumulative Distribution Rate (current
fiscal year)5
|
6.39%
|
N-2 - $ / shares |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Aug. 31, 2023 |
Aug. 31, 2022 |
Aug. 31, 2021 |
Aug. 31, 2023 |
Aug. 31, 2020 |
Aug. 31, 2019 |
Aug. 31, 2018 |
|
Cover [Abstract] | |||||||
Entity Central Index Key | 0000810943 | ||||||
Amendment Flag | false | ||||||
Document Type | N-CSR | ||||||
Entity Registrant Name | High Income Securities Fund | ||||||
General Description of Registrant [Abstract] | |||||||
Investment Objectives and Practices [Text Block] | Investment Objective and Risk Factors
Investment Objectives
The Fund’s investment objective is to seek to provide high current income as a primary objective and capital appreciation as a secondary objective. There can be no assurance that the Fund’s objectives will be achieved. The
Board is currently reviewing and may determine it is in the best interests of the Fund and its Shareholders to make changes to the Fund’s current investment objective, investment strategies and fundamental and non-fundamental investment restrictions
subject, where required, to the approval of the Shareholders. Any such changes would be disclosed in a future registration statement.
Investment Strategies
The Investment Committee currently manages the Fund’s assets with a focus on discounted securities of income-oriented closed-end investment companies and business development companies. The Board may determine in the future
that it is in the best interests of the Fund and its Shareholders to engage an investment advisory firm to manage the Fund’s assets. The Fund’s objective is pursued by primarily investing, under normal circumstances, at least 80% of its net assets in
fixed income securities, including debt instruments, convertible securities and preferred stocks. The Fund also invests in high-yielding non-convertible securities with the potential for capital appreciation. The primary focus of the investment
strategy is to acquire discounted securities of income-oriented closed-end investment companies and business development companies. In addition, units or common shares issued by special purpose acquisition companies (SPACs) may comprise up to 20% of
the Fund’s portfolio at the time of purchase. The Fund may hold fixed income securities with any maturity or duration.
The Fund may, from time to time, take temporary defensive positions that are inconsistent with the Fund’s principal investment strategies in attempting to respond to adverse market, economic, political or other conditions.
During such times, the Fund may temporarily invest up to 100% of its assets in cash or cash equivalents, including money market instruments, prime commercial paper, repurchase agreements, Treasury bills and other short-term obligations of the U.S.
Government, its agencies or instrumentalities. In these and in other cases, the Fund may not achieve its investment objective.
The Investment Committee may invest the Fund’s cash balances in any investments it deems appropriate, subject to the “Fundamental Investment Restrictions” set forth in the Fund’s Statement of Additional Information and as
permitted under the 1940 Act, including investments in repurchase agreements, money market funds, additional repurchase agreements, U.S. Treasury and U.S. agency securities, municipal bonds and bank accounts. Any income earned from such investments
will ordinarily be reinvested by the Fund in accordance with its investment program. Many of the considerations entering into the Investment Committee’s recommendations and decisions are subjective.
Portfolio Investments
Other Closed-End Investment Companies
The Fund may invest without limitation in other closed-end investment companies, provided that the Fund limits its investment in securities issued by other investment companies so that not more than 3% of the outstanding
voting stock of any one investment company will be owned by the Fund. There can be no assurance that the investment objective of any investment company in which the Fund invests will be achieved. Closed-end investment companies are subject to the
risks of investing in the underlying securities. The Fund, as a holder of the securities of the closed-end investment company, will bear its pro rata portion of the closed-end investment company’s expenses, including advisory fees. These expenses are
in addition to the direct expenses of the Fund’s own operations. The closed end investment companies in which the Fund invests hold fixed income securities. The Fund “looks through” to these investments in determining whether at least 80% of the
Fund’s investments are comprised of fixed income securities.
Special Purpose Acquisition Companies
The Fund may invest in stocks, warrants, and other securities of special purpose acquisition companies or similar special purpose entities that pool funds to seek potential acquisition opportunities (“SPACs”). Unless and
until an acquisition meeting the SPAC’s requirements is completed, a SPAC generally invests its assets (less a portion retained to cover expenses) in U.S. Government securities, money market securities and cash. If an acquisition that meets the
requirements for the SPAC is not completed within a pre-established period of time, the invested funds are returned to the entity’s shareholders. Because SPACs and similar entities have no operating history or ongoing business other than seeking
acquisitions, the value of their securities is particularly dependent on the ability of the entity’s management to identify and complete a profitable acquisition. Some SPACs may pursue acquisitions only within certain industries or regions, which
may increase the volatility of their prices. In addition, these securities, which are typically traded in the over-the-counter market, may be considered illiquid, be subject to restrictions on resale and/or may trade at a discount.
Common Stocks
The Fund will invest in common stocks. Common stocks represent an ownership interest in an issuer. While offering greater potential for long-term growth, common stocks are more volatile and riskier than some other forms of
investment. Common stock prices fluctuate for many reasons, including adverse events, such as an unfavorable earnings report, changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant stock
market, or when political or economic events affecting the issuers occur. In addition, common stock prices may be sensitive to rising interest rates as the costs of capital rise and borrowing costs increase.
Preferred Stocks
The Fund may invest in preferred stocks. Preferred stock, like common stock, represents an equity ownership in an issuer. Generally, preferred stock has a priority of claim over common stock in dividend payments and upon
liquidation of the issuer. Unlike common stock, preferred stock does not usually have voting rights. Preferred stock in some instances is convertible into common stock. Although they are equity securities, preferred stocks have characteristics of
both debt and common stock. Like debt, their promised income is contractually fixed. Like common stock, they do not have rights to precipitate bankruptcy proceedings or collection activities in the event of missed payments. Other equity
characteristics are their subordinated position in an issuer’s capital structure and that their quality and value are heavily dependent on the profitability of the issuer rather than on any legal claims to specific assets or cash flows.
Distributions on preferred stock must be declared by the board of directors and may be subject to deferral, and thus they may not be automatically payable. Income payments on preferred stocks may be cumulative, causing
dividends and distributions to accrue even if not declared by the company’s board or otherwise made payable, or they may be non-cumulative, so that skipped dividends and distributions do not continue to accrue. There is no assurance that dividends on
preferred stocks in which the Fund invests will be declared or otherwise made payable. The Fund may invest in non-cumulative preferred stock, although the Investment Committee may consider, among other factors, their non-cumulative nature in making
any decision to purchase or sell such securities.
Shares of preferred stock have a liquidation value that generally equals the original purchase price at the date of issuance. The market values of preferred stock may be affected by favorable and unfavorable changes
impacting the issuers’ industries or sectors, including companies in the utilities and financial services sectors, which are prominent issuers of preferred stock. They may also be affected by actual and anticipated changes or ambiguities in the tax
status of the security and by actual and anticipated changes or ambiguities in tax laws, such as changes in corporate and individual income tax rates, and in the dividends received deduction for corporate taxpayers or the lower rates applicable to certain
dividends.
Because the claim on an issuer’s earnings represented by preferred stock may become onerous when interest rates fall below the rate payable on the stock or for other reasons, the issuer may redeem preferred stock, generally
after an initial period of call protection in which the stock is not redeemable. Thus, in declining interest rate environments in particular, the Fund’s holdings of higher dividend-paying preferred stocks may be reduced and the Fund may be unable
to acquire securities paying comparable rates with the redemption proceeds.
Warrants
The Fund may invest in equity and index warrants of domestic and international issuers. Equity warrants are securities that give the holder the right, but not the obligation, to subscribe for equity issues of the issuing
company or a related company at a fixed price either on a certain date or during a set period. Changes in the value of a warrant do not necessarily correspond to changes in the value of its underlying security. The price of a warrant may be more
volatile than the price of its underlying security, and a warrant may offer greater potential for capital appreciation as well as capital loss. Warrants do not entitle a holder to dividends or voting rights with respect to the underlying security and
do not represent any rights in the assets of the issuing company. A warrant ceases to have value if it is not exercised prior to its expiration date. These factors can make warrants more speculative than other types of investments. The sale of a
warrant results in a long or short-term capital gain or loss depending on the period for which the warrant is held.
Corporate Bonds, Government Debt Securities and Other Debt Securities
The Fund may invest in corporate bonds, debentures and other debt securities or in investment companies which hold such instruments. Bonds and other debt securities generally are issued by corporations and other issuers to
borrow money from investors. The issuer pays the investor a fixed rate of interest and normally must repay the amount borrowed on or before maturity. Certain debt securities are “perpetual” in that they have no maturity date.
The Fund will invest in government debt securities, including those of emerging market issuers or of other non-U.S. issuers. These securities may be U.S. dollar-denominated or non-U.S. dollar-denominated and include: (a)
debt obligations issued or guaranteed by foreign national, provincial, state, municipal or other governments with taxing authority or by their agencies or instrumentalities; and (b) debt obligations of supranational entities. Government debt
securities include: debt securities issued or guaranteed by governments, government agencies or instrumentalities and political subdivisions; debt securities issued by government owned, controlled or sponsored entities; interests in entities
organized and operated for the purpose of restructuring the investment characteristics issued by the above noted issuers; or debt securities issued by supranational entities such as the World Bank or the European Union. The Fund may also
invest in securities denominated in currencies of emerging market countries. Emerging market debt securities generally are rated in the lower rating categories of recognized credit rating agencies or are unrated and considered to be of comparable
quality to lower rated debt securities.
Convertible Securities
The Fund may invest in convertible securities. Convertible securities include fixed income securities that may be exchanged or converted into a predetermined number of shares of the issuer’s underlying common stock at the
option of the holder during a specified period. Convertible securities may take the form of convertible preferred stock, convertible bonds or debentures, units consisting of “usable” bonds and warrants or a combination of the features of several of
these securities. The investment characteristics of each convertible security vary widely, which allows convertible securities to be employed for a variety of investment strategies.
The Fund will exchange or convert convertible securities into shares of underlying common stock when, in the opinion of the Investment Committee, the investment characteristics of the underlying common shares will assist
the Fund in achieving its investment objective. The Fund may also elect to hold or trade convertible securities. In selecting convertible securities, the Investment Committee evaluates the investment characteristics of the convertible security as a
fixed income instrument, and the investment potential of the underlying equity security for capital appreciation. In evaluating these matters with respect to a particular convertible security, the Investment Committee considers numerous factors,
including the economic and political outlook, the value of the security relative to other investment alternatives, trends in the determinants of the issuer’s profits, and the issuer’s management capability and practices.
Other Securities
Although it has no current intention do so to any material extent, the Fund may determine to invest the Fund’s assets in some or all of the following securities.
Illiquid Securities
Illiquid securities are securities that are not readily marketable. Illiquid securities include securities that have legal or contractual restrictions on resale, and repurchase agreements maturing in more than seven days.
Illiquid securities involve the risk that the securities will not be able to be sold at the time desired or at prices approximating the value at which the Fund is carrying the securities. Where registration is required to sell a security, the Fund
may be obligated to pay all or part of the registration expenses, and a considerable period may elapse between the decision to sell and the time the Fund may be permitted to sell a security under an effective registration statement. If, during such a period, adverse market conditions were to develop, the Fund might obtain a
less favorable price than prevailed when it decided to sell. The Fund may invest up to 10% of the value of its net assets in illiquid securities. Restricted securities for which no market exists and other illiquid investments are valued at fair value
as determined in accordance with procedures approved and periodically reviewed by the Board of Trustees. The Fund does not consider its investments in SPACs to be illiquid because they are publicly traded securities.
Rule 144A Securities
The Fund may invest in restricted securities that are eligible for resale pursuant to Rule 144A under the Securities Act of 1933, as amended, (the “1933 Act”). Generally, Rule 144A establishes a safe harbor from the
registration requirements of the 1933 Act for resale by large institutional investors of securities that are not publicly traded. The Investment Committee determines the liquidity of the Rule 144A securities according to guidelines adopted by the
Board of Trustees. The Board of Trustees monitors the application of those guidelines and procedures. Securities eligible for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Fund’s 10% limit on investments in
illiquid securities.
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Risk Factors [Table Text Block] | RISK FACTORS
An investment in the Fund is not guaranteed to achieve its investment objective; is not a deposit with a bank; is not insured, endorsed or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency; and is subject to investment risks. The value of the Fund’s investments will increase or decrease based on changes in the prices of the investments it holds. You could lose money by investing in the Fund. By itself, the Fund
does not constitute a balanced investment program. You should consider carefully the following principal and non-principal risks before investing in the Fund. There may be additional risks that the Fund does not currently foresee or consider
material. You may wish to consult with your legal or tax advisors, before deciding whether to invest in the Fund. This section describes the risk factors associated with investment in the Fund specifically, as well as those factors generally
associated with investment in an investment company with investment objectives, investment policies, capital structure or trading markets similar to the Fund’s. Each risk summarized below is a risk of investing in the Fund and different risks may be
more significant at different times depending upon market conditions or other factors.
The Fund may invest in securities of other investment companies (“underlying funds”). The Fund may be subject to the risks of the securities and other instruments described below through its own direct
investments and indirectly through investments in the underlying funds.
Principal Risks
Closed-End Investment Company Risk. The Fund invests in the securities of other closed-end investment companies. Investing in other closed-end investment
companies involves substantially the same risks as investing directly in the underlying instruments, but the total return on such investments at the investment company level may be reduced by the operating expenses and fees of such other closed-end
investment companies, including advisory fees. There can be no assurance that the investment objective of any investment company in which the Fund invests will be achieved. Closed-end investment companies are subject to the risks of investing in the
underlying securities. The Fund, as a holder of the securities of another closed-end investment company, will bear its pro rata portion of the closed-end investment company’s expenses, including advisory fees. These expenses are in addition to the
direct expenses of the Fund’s own operations. To the extent the Fund invests a portion of its assets in investment company securities, those assets will be subject to the risks of the purchased investment company’s portfolio securities, and a
shareholder in the Fund will bear not only his proportionate share of the expenses of the Fund, but also, indirectly, the expenses of the purchased investment company. The market price of a closed-end investment company fluctuates and may be either
higher or lower than the NAV of such closed-end investment company. In accordance with Section 12(d)(1)(F) of the 1940 Act, the Fund will be limited by provisions of the 1940 Act that limit the amount the Fund, together with its affiliated persons,
can invest in other investment companies to 3% of any other investment company’s total outstanding stock. As a result, the Fund may hold a smaller position in a closed-end investment company than if it were not subject to this restriction.
Special Purpose Acquisition Companies Risk. The Fund may invest in stock, warrants, and other securities of special purpose acquisition companies or similar
special purpose entities that pool funds to seek potential acquisition opportunities (“SPACs”). Unless and until an acquisition meeting the SPAC’s requirements is completed, a SPAC generally invests its assets (less a portion retained to cover
expenses) in U.S. Government securities, money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed within a pre-established period of time, the invested funds are returned to the entity’s
shareholders. Because SPACs and similar entities have no operating history or ongoing business other than seeking acquisitions, the value of their securities is particularly dependent on the ability of the entity’s management to identify and
complete a profitable acquisition. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. In addition, these securities, which are typically traded in the over-the-counter
market, may be considered illiquid, be subject to restrictions on resale, and/or may trade at a discount.
Management Risk. The Fund is subject to management risk because it is an actively managed portfolio. The Fund’s successful pursuit of its investment objective
depends upon the Investment Committee’s ability to find and exploit market inefficiencies with respect to undervalued securities. Such situations occur infrequently and sporadically and may be difficult to predict, and may not result in a favorable
pricing opportunity that allows the Investment Committee to fulfill the Fund’s investment objective. The Investment Committee’s security selections and other investment decisions might produce losses or cause the Fund to underperform when compared to
other funds with similar investment goals.
Market Risk. Overall market risk may affect the value of individual instruments in which the Fund invests. The Fund is subject to the risk that the securities
markets will move down, sometimes rapidly and unpredictably, based on overall economic conditions and other factors, which may negatively affect the Fund’s performance. Factors such as domestic and foreign (non-U.S.) economic growth and market
conditions, real or perceived adverse economic or political conditions, inflation, changes in interest rate levels, lack of liquidity in the markets, volatility in the securities markets, adverse investor sentiment affect the securities markets and
political vents affect the securities markets. Securities markets also may experience long periods of decline in value. When the value of the Fund’s investments goes down, your investment in the Fund decreases in value and you could lose money.
Local, state, regional, national or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and
its investments and could result in decreases to the Fund’s net asset value. Political, geopolitical, natural and other events, including war, terrorism, trade disputes, government shutdowns, market closures, natural and environmental disasters,
epidemics, pandemics and other public health crises and related events and governments’ reactions to such events have led, and in the future may lead, to economic uncertainty, decreased economic activity, increased market volatility and other
disruptive effects on U.S. and global economies and markets. Such events may have significant adverse direct or indirect effects on the Fund and its investments. For example, a widespread health crisis such as a global pandemic could cause
substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect Fund performance. A health crisis may exacerbate other pre-existing political, social and economic risks. In addition,
the increasing interconnectedness of markets around the world may result in many markets being affected by events or conditions in a single country or region or events affecting a single or small number of issuers.
An outbreak of infectious respiratory illness caused by a novel coronavirus known as COVID-19 was first detected in China in December 2019 and has now been detected globally. On March 11, 2020, the World Health Organization
announced that it had made the assessment that COVID-19 can be characterized as a pandemic. COVID-19 has resulted in travel restrictions, closed international borders, enhanced health screenings at ports of entry and elsewhere, disruption of and
delays in healthcare service preparation and delivery, prolonged quarantines, cancellations, business and school closings, supply chain disruptions, and lower consumer demand, as well as general concern and uncertainty. The impact of COVID-19, and
other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen. In addition, the
impact of infectious illnesses in emerging market countries may be greater due to generally less established healthcare systems. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic
risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty. The value of the Fund and the securities in which the Fund invests may be adversely affected by impacts caused by
COVID-19 and other epidemics and pandemics that may arise in the future. Risk Related to Fixed Income Securities, including Non-Investment Grade Securities. The Fund may invest in fixed income securities, also referred to as debt
securities. Fixed income securities are subject to credit risk and market risk. Credit risk is the risk of the issuer’s inability to meet its principal and interest payment obligations. Market risk is the risk of price volatility due to such factors
as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity. There is no limitation on the maturities or duration of fixed income securities in which the Fund invests. Securities having longer
maturities generally involve greater risk of fluctuations in value resulting from changes in interest rates. The Fund’s credit quality policy with respect to investments in fixed income securities does not require the Fund to dispose of any debt
securities owned in the event that such security’s rating declines to below investment grade, commonly referred to as “junk bonds.” Although lower quality debt typically pays a higher yield, such investments involve substantial risk of loss. Junk
bonds are considered predominantly speculative with respect to the issuer’s ability to pay interest and principal and are susceptible to default or decline in market value due to adverse economic and business developments. The market values for junk
bonds tend to be very volatile and those securities are less liquid than investment grade debt securities. Moreover, junk bonds pose a greater risk that exercise of any of their redemption or call provisions in a declining market may result in their
replacement by lower-yielding bonds. In addition, bonds in the
lowest two investment grade categories, despite being of higher credit rating than junk bonds, have speculative characteristics with respect to the issuer’s ability to pay interest and principal and their susceptibility to
default or decline in market value. The Fund’s investments in securities of stressed, distressed or bankrupt issuers, including securities or obligations that are in default, generally trade significantly below par and are considered speculative.
There is even a potential risk of loss by the Fund of its entire investment in such securities. There are a number of significant risks inherent in the bankruptcy process. A bankruptcy filing by an issuer may adversely and permanently affect the
market position and operations of the issuer. If an issuer of securities held by the Fund declares bankruptcy or otherwise fails to pay principal or interest on such securities, the Fund would experience a decrease in income and a decline in the
market value of its investments. Interest Rate Risk. Debt securities have varying levels of sensitivity to changes in interest rates. In general, the price of a debt security can fall when
interest rates rise and can rise when interest rates fall. Securities with longer maturities and mortgage securities can be more sensitive to interest rate changes although they usually offer higher yields to compensate investors for the greater
risks. The longer the maturity of the security, the greater the impact a change in interest rates could have on the security’s price. In addition, short-term and long-term interest rates do not necessarily move in the same amount or the same
direction. Short-term securities tend to react to changes in short-term interest rates and long-term securities tend to react to changes in long-term interest rates.
Credit Risk. Fixed income securities rated B or below by S&Ps or Moody’s may be purchased by the Fund. These securities have speculative characteristics and
changes in economic conditions or other circumstances are more likely to lead to a weakened capacity of those issuers to make principal or interest payments, as compared to issuers of more highly rated securities.
Extension Risk. The Fund is subject to the risk that an issuer will exercise its right to pay principal on an obligation held by that Fund (such as
mortgage-backed securities) later than expected. This may happen when there is a rise in interest rates. These events may lengthen the duration (i.e. interest rate sensitivity) and potentially reduce the value of these securities.
Debt Security Risk. In addition to interest rate risk, call risk and extension risk, debt securities are also subject to the risk that they may also lose value if
the issuer fails to make principal or interest payments when due, or the credit quality of the issuer falls.
Market Discount from Net Asset Value Risk. Shares of closed-end investment companies frequently trade at a discount from their net asset value. This
characteristic is a risk separate and distinct from the risk that the Fund’s net asset value could decrease as a result of its investment activities and may be greater for investors expecting to sell their Shares in a relatively short period
following completion of the Offering. The net asset value of the Shares will be reduced immediately following the Offering as a result of (i) the Subscription Price likely being lower than NAV and (ii) the payment of certain costs of the Offering.
Whether investors will realize gains or losses upon the sale of the Shares will depend not upon the Fund’s net asset value but entirely upon whether the market price of the Shares at the time of sale is above or below the investor’s purchase price
for the Shares. Because the market price of the Shares will be determined by factors such as relative supply of and demand for the Shares in the market, general market and economic conditions, and other factors beyond the control of the Fund, the
Fund cannot predict whether the Shares will trade at, below or above net asset value.
Leverage Risk. Transactions by underlying funds may give rise to a form of economic leverage. These transactions may include, among others, derivatives, and may
expose the underlying fund to greater risk and increase its costs. The use of leverage by underlying funds may cause such funds to liquidate their portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet any
required asset segregation requirements. Increases and decreases in the value of an underlying fund’s portfolio will be magnified when it uses leverage. Leverage, including borrowing, may cause an underlying fund to be more volatile than if such fund
had not been leveraged.
Defensive Position Risk. During periods of adverse market or economic conditions, the Fund may temporarily invest all or a substantial portion of its net assets
in cash or cash equivalents. The Fund would not be pursuing its investment objective in these circumstances and could miss favorable market developments.
Changes in Policies Risk. The Fund’s Trustees may change the Fund’s investment objective, investment strategies and non-fundamental investment restrictions
without shareholder approval, except as otherwise indicated.
Preferred Stock Risk. The Fund may invest in preferred stocks. Preferred stock, like common stock, represents an equity ownership in an issuer. Generally,
preferred stock has a priority of claim over common stock in dividend payments and upon liquidation of the issuer. Unlike common stock, preferred stock does not usually have voting rights. Preferred stock in some instances is convertible into common
stock. Although they are equity securities, preferred stocks have characteristics of both debt and common stock. Like debt, their promised income
is contractually fixed. Like common stock, they do not have rights to precipitate bankruptcy proceedings or collection activities in the event of missed payments. Other equity characteristics are their subordinated position
in an issuer’s capital structure and that their quality and value are heavily dependent on the profitability of the issuer rather than on any legal claims to specific assets or cash flows.
Investment in preferred stocks carries risks, including credit risk, deferral risk, redemption risk, limited voting rights, risk of subordination and lack of liquidity. Fully taxable or hybrid preferred securities typically
contain provisions that allow an issuer, at its discretion, to defer distributions for up to 20 consecutive quarters. Distributions on preferred stock must be declared by the board of trustees and may be subject to deferral, and thus they may not be
automatically payable. Income payments on preferred stocks may be cumulative, causing dividends and distributions to accrue even if not declared by the company’s board or otherwise made payable, or they may be non-cumulative, so that skipped
dividends and distributions do not continue to accrue. There is no assurance that dividends on preferred stocks in which the Fund invests will be declared or otherwise made payable. The Fund may invest in non-cumulative preferred stock, although the
Fund’s Investment Committee would consider, among other factors, their non-cumulative nature in making any decision to purchase or sell such securities.
Shares of preferred stock have a liquidation value that generally equals the original purchase price at the date of issuance. The market values of preferred stock may be affected by favorable and unfavorable changes
impacting the issuers’ industries or sectors, including companies in the utilities and financial services sectors, which are prominent issuers of preferred stock. They may also be affected by actual and anticipated changes or ambiguities in the tax
status of the security and by actual and anticipated changes or ambiguities in tax laws, such as changes in corporate and individual income tax rates, and in the dividends received deduction for corporate taxpayers or the lower rates applicable to
certain dividends.
Because the claim on an issuer’s earnings represented by preferred stock may become onerous when interest rates fall below the rate payable on the stock or for other reasons, the issuer may redeem preferred stock, generally
after an initial period of call protection in which the stock is not redeemable. Thus, in declining interest rate environments in particular, the Fund’s holdings of higher dividend paying preferred stocks may be reduced and the Fund may be unable to
acquire securities paying comparable rates with the redemption proceeds. In the event of a redemption, the Fund may not be able to reinvest the proceeds at comparable rates of return. Convertible Securities Risk. The Fund may invest in convertible securities. Convertible securities include fixed income securities that may be exchanged or
converted into a predetermined number of shares of the issuer’s underlying common stock at the option of the holder during a specified period. Convertible securities may take the form of convertible preferred stock,
convertible bonds or debentures, units consisting of “usable” bonds and warrants or a combination of the features of several of these securities. The investment characteristics of each convertible security vary widely, which allows convertible
securities to be employed for a variety of investment strategies. The Fund will exchange or convert convertible securities into shares of underlying common stock when, in the opinion of the Fund’s Investment Committee, the investment characteristics
of the underlying common shares will assist the Fund in achieving its investment objective. The Fund may also elect to hold or trade convertible securities. In selecting convertible securities, the Fund’s Investment Committee evaluates the investment
characteristics of the convertible security as a fixed income instrument, and the investment potential of the underlying equity security for capital appreciation. In evaluating these matters with respect to a particular convertible security, the
Fund’s Investment Committee considers numerous factors, including the economic and political outlook, the value of the security relative to other investment alternatives, trends in the determinants of the issuer’s profits, and the issuer’s management
capability and practices.
The value of a convertible security, including, for example, a warrant, is a function of its “investment value” (determined by its yield in comparison with the yields of other securities of comparable maturity and quality
that do not have a conversion privilege) and its “conversion value” (the security’s worth, at market value, if converted into the underlying common stock). The investment value of a convertible security is influenced by changes in interest rates,
with investment value declining as interest rates increase and increasing as interest rates decline. The credit standing of the issuer and other factors may also have an effect on the convertible security’s investment value. The conversion value of a
convertible security is determined by the market price of the underlying common stock. If the conversion value is low relative to the investment value, the price of the convertible security is governed principally by its investment value. Generally,
the conversion value decreases as the convertible security approaches maturity. To the extent the market price of the underlying common stock approaches or exceeds the conversion price, the price of the convertible security will be increasingly
influenced by its conversion value. A convertible security generally will sell at a premium over its conversion value by the extent to which investors place value on the right to acquire the underlying common stock while holding a fixed income
security. A convertible security may be subject to redemption at the option of the issuer at a price established in the convertible security’s governing instrument. If a convertible security held by the Fund is called for redemption, the Fund will be
required to permit the issuer to redeem the security, convert it into the underlying common stock or sell it to a third party. Any of these actions could have an adverse effect on the Fund’s ability to achieve its investment objective. Issuer Specific Changes Risk. Changes in the financial condition of an issuer, changes in the specific economic or political conditions that affect a particular
type of security or issuer, and changes in general economic or political conditions can affect the credit quality or value of an issuer’s securities. Lower-quality debt securities tend to be more sensitive to these changes than higher-quality debt
securities.
Non-Principal Risks
In addition to the principal risks set forth above, the following additional risks may apply to an investment in the Fund.
Anti-Takeover Provisions Risk. The Fund’s Charter and Bylaws include provisions that could limit the ability of other persons or entities to acquire control of
the Fund or to cause it to engage in certain transactions or to modify its structure.
Common Stock Risk. The Fund invests in common stocks. Common stocks represent an ownership interest in a company. The Fund may also invest in securities that can
be exercised for or converted into common stocks (such as convertible preferred stock). Common stocks and similar equity securities are more volatile and riskier than some other forms of investment. Therefore, the value of your investment in the Fund
may sometimes decrease instead of increase. Common stock prices fluctuate for many reasons, including adverse events such as unfavorable earnings reports, changes in investors’ perceptions of the financial condition of an issuer, the general
condition of the relevant stock market or when political or economic events affecting the issuers occur. In addition, common stock prices may be sensitive to rising interest rates, as the costs of capital rise and borrowing costs increase for
issuers. Because convertible securities can be converted into equity securities, their values will normally increase or decrease as the values of the underlying equity securities increase or decrease. The common stocks in which the Fund invests are
structurally subordinated to preferred securities, bonds and other debt instruments in a company’s capital structure in terms of priority to corporate income and assets and, therefore, will be subject to greater risk than the preferred securities or
debt instruments of such issuers.
Exchange Traded Funds Risk. The Fund may invest in exchange-traded funds, which are investment companies that, in some cases, aim to track or replicate a desired
index, such as a sector, market or global segment. ETFs are passively or, to a lesser extent, actively managed and their shares are traded on a national exchange. ETFs do not sell individual shares directly to investors and only issue their shares in
large blocks known as “creation units.” The investor purchasing a creation unit may sell the individual shares on a secondary market. Therefore, the
liquidity of ETFs depends on the adequacy of the secondary market. There can be no assurance that an ETF’s investment objective will be achieved, as ETFs based on an index may not replicate and maintain exactly the
composition and relative weightings of securities in the index. ETFs are subject to the risks of investing in the underlying securities. The Fund, as a holder of the securities of the ETF, will bear its pro rata portion of the ETF’s expenses,
including advisory fees. These expenses are in addition to the direct expenses of the Fund’s own operations. Illiquid Securities Risk. The Fund may invest up to 10% of its net assets in illiquid securities. Illiquid securities may offer a higher yield than securities
which are more readily marketable, but they may not always be marketable on advantageous terms. The sale of illiquid securities often requires more time and results in higher brokerage charges or dealer discounts than does the sale of securities
eligible for trading on national securities exchanges or in the over-the-counter markets. A security traded in the U.S. that is not registered under the Securities Act will not be considered illiquid if Fund management determines that an adequate
investment trading market exists for that security. However, there can be no assurance that a liquid market will exist for any security at a particular time.
Portfolio Turnover Risk. The Fund cannot predict its securities portfolio turnover rate with certain accuracy. Higher portfolio turnover rates could result in
corresponding increases in brokerage commissions and may generate short-term capital gains taxable as ordinary income.
Small and Medium Cap Company Risk. Compared to investment companies that focus only on large capitalization companies, the Fund’s share price may be more
volatile because it also invests in small and medium capitalization companies. Compared to large companies, small and medium capitalization companies are more likely to have (i) more limited product lines or markets and less mature businesses, (ii)
fewer capital resources, (iii) more limited management depth and (iv) shorter operating histories. Further, compared to large cap stocks, the securities of small and medium capitalization companies are more likely to experience sharper swings in
market values, be harder to sell at times and at prices that the Fund’s Investment Committee believes appropriate, and offer greater potential for gains and losses.
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Capital Stock, Long-Term Debt, and Other Securities [Abstract] | |||||||
Capital Stock [Table Text Block] | Note 5: Capital Share Transactions
The Fund completed an offering to issue up to 100% of the Fund’s shares outstanding at 95% of the volume weighted average market price per share for the three consecutive trading days ending on the trading day after the
Expiration Date on October 22, 2021. At the expiration of the offer on October 22, 2021, a total of 8,042,590 rights or approximately 84.77% of the Fund’s outstanding common shares were validly exercised.
The Fund completed an offering to issue up to 100% of the Fund’s shares outstanding at 95% of the volume weighted average market price per share for the three consecutive trading days ending on the trading day after the
Expiration Date on January 29, 2021. At the expiration of the offer on January 29, 2021, a total of 3,922,867 rights or approximately 70.49% of the Fund’s outstanding common shares were validly exercised.
Repurchases may be made when the Fund’s shares are trading at less than net asset value and in accordance with procedures approved by the Fund’s Previous Trustees.
For the period September 1, 2022 through August 31, 2023 there were no common shares repurchased.
The Fund completed an offering to purchase up to 55% of the Fund’s shares outstanding at 99% of the net asset value (“NAV”) per common share on March 15, 2019. At the expiration of the offer on March 18, 2019, a total of
7,365,350 shares or approximately 56.96% of the Fund’s outstanding common shares were validly tendered. As the total number of shares tendered exceeded the number of shares the Fund offered to purchase and in accordance with the rules of the
Securities and Exchange Commission allowing the Fund to purchase additional shares not to exceed 2% of the outstanding shares (approximately 258,607 shares) without amending or extending the offer, the Fund elected to purchase all shares tendered at
a price of $9.25 per share (99% of the NAV of $9.34).
|
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Document Period End Date | Aug. 31, 2023 | ||||||
Closed-End Investment Company Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Closed-End Investment Company Risk. The Fund invests in the securities of other closed-end investment companies. Investing in other closed-end investment
companies involves substantially the same risks as investing directly in the underlying instruments, but the total return on such investments at the investment company level may be reduced by the operating expenses and fees of such other closed-end
investment companies, including advisory fees. There can be no assurance that the investment objective of any investment company in which the Fund invests will be achieved. Closed-end investment companies are subject to the risks of investing in the
underlying securities. The Fund, as a holder of the securities of another closed-end investment company, will bear its pro rata portion of the closed-end investment company’s expenses, including advisory fees. These expenses are in addition to the
direct expenses of the Fund’s own operations. To the extent the Fund invests a portion of its assets in investment company securities, those assets will be subject to the risks of the purchased investment company’s portfolio securities, and a
shareholder in the Fund will bear not only his proportionate share of the expenses of the Fund, but also, indirectly, the expenses of the purchased investment company. The market price of a closed-end investment company fluctuates and may be either
higher or lower than the NAV of such closed-end investment company. In accordance with Section 12(d)(1)(F) of the 1940 Act, the Fund will be limited by provisions of the 1940 Act that limit the amount the Fund, together with its affiliated persons,
can invest in other investment companies to 3% of any other investment company’s total outstanding stock. As a result, the Fund may hold a smaller position in a closed-end investment company than if it were not subject to this restriction.
|
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Special Purpose Acquisition Companies Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Special Purpose Acquisition Companies Risk. The Fund may invest in stock, warrants, and other securities of special purpose acquisition companies or similar
special purpose entities that pool funds to seek potential acquisition opportunities (“SPACs”). Unless and until an acquisition meeting the SPAC’s requirements is completed, a SPAC generally invests its assets (less a portion retained to cover
expenses) in U.S. Government securities, money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed within a pre-established period of time, the invested funds are returned to the entity’s
shareholders. Because SPACs and similar entities have no operating history or ongoing business other than seeking acquisitions, the value of their securities is particularly dependent on the ability of the entity’s management to identify and
complete a profitable acquisition. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. In addition, these securities, which are typically traded in the over-the-counter
market, may be considered illiquid, be subject to restrictions on resale, and/or may trade at a discount.
|
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Management Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Management Risk. The Fund is subject to management risk because it is an actively managed portfolio. The Fund’s successful pursuit of its investment objective
depends upon the Investment Committee’s ability to find and exploit market inefficiencies with respect to undervalued securities. Such situations occur infrequently and sporadically and may be difficult to predict, and may not result in a favorable
pricing opportunity that allows the Investment Committee to fulfill the Fund’s investment objective. The Investment Committee’s security selections and other investment decisions might produce losses or cause the Fund to underperform when compared to
other funds with similar investment goals.
|
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Market Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Market Risk. Overall market risk may affect the value of individual instruments in which the Fund invests. The Fund is subject to the risk that the securities
markets will move down, sometimes rapidly and unpredictably, based on overall economic conditions and other factors, which may negatively affect the Fund’s performance. Factors such as domestic and foreign (non-U.S.) economic growth and market
conditions, real or perceived adverse economic or political conditions, inflation, changes in interest rate levels, lack of liquidity in the markets, volatility in the securities markets, adverse investor sentiment affect the securities markets and
political vents affect the securities markets. Securities markets also may experience long periods of decline in value. When the value of the Fund’s investments goes down, your investment in the Fund decreases in value and you could lose money.
Local, state, regional, national or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and
its investments and could result in decreases to the Fund’s net asset value. Political, geopolitical, natural and other events, including war, terrorism, trade disputes, government shutdowns, market closures, natural and environmental disasters,
epidemics, pandemics and other public health crises and related events and governments’ reactions to such events have led, and in the future may lead, to economic uncertainty, decreased economic activity, increased market volatility and other
disruptive effects on U.S. and global economies and markets. Such events may have significant adverse direct or indirect effects on the Fund and its investments. For example, a widespread health crisis such as a global pandemic could cause
substantial market volatility, exchange trading suspensions and closures, impact the ability to complete redemptions, and affect Fund performance. A health crisis may exacerbate other pre-existing political, social and economic risks. In addition,
the increasing interconnectedness of markets around the world may result in many markets being affected by events or conditions in a single country or region or events affecting a single or small number of issuers.
An outbreak of infectious respiratory illness caused by a novel coronavirus known as COVID-19 was first detected in China in December 2019 and has now been detected globally. On March 11, 2020, the World Health Organization
announced that it had made the assessment that COVID-19 can be characterized as a pandemic. COVID-19 has resulted in travel restrictions, closed international borders, enhanced health screenings at ports of entry and elsewhere, disruption of and
delays in healthcare service preparation and delivery, prolonged quarantines, cancellations, business and school closings, supply chain disruptions, and lower consumer demand, as well as general concern and uncertainty. The impact of COVID-19, and
other infectious illness outbreaks that may arise in the future, could adversely affect the economies of many nations or the entire global economy, individual issuers and capital markets in ways that cannot necessarily be foreseen. In addition, the
impact of infectious illnesses in emerging market countries may be greater due to generally less established healthcare systems. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic
risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty. The value of the Fund and the securities in which the Fund invests may be adversely affected by impacts caused by
COVID-19 and other epidemics and pandemics that may arise in the future.
|
||||||
Risk Related to Fixed Income Securities, including Non-Investment Grade Securities [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Risk Related to Fixed Income Securities, including Non-Investment Grade Securities. The Fund may invest in fixed income securities, also referred to as debt
securities. Fixed income securities are subject to credit risk and market risk. Credit risk is the risk of the issuer’s inability to meet its principal and interest payment obligations. Market risk is the risk of price volatility due to such factors
as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity. There is no limitation on the maturities or duration of fixed income securities in which the Fund invests. Securities having longer
maturities generally involve greater risk of fluctuations in value resulting from changes in interest rates. The Fund’s credit quality policy with respect to investments in fixed income securities does not require the Fund to dispose of any debt
securities owned in the event that such security’s rating declines to below investment grade, commonly referred to as “junk bonds.” Although lower quality debt typically pays a higher yield, such investments involve substantial risk of loss. Junk
bonds are considered predominantly speculative with respect to the issuer’s ability to pay interest and principal and are susceptible to default or decline in market value due to adverse economic and business developments. The market values for junk
bonds tend to be very volatile and those securities are less liquid than investment grade debt securities. Moreover, junk bonds pose a greater risk that exercise of any of their redemption or call provisions in a declining market may result in their
replacement by lower-yielding bonds. In addition, bonds in the
lowest two investment grade categories, despite being of higher credit rating than junk bonds, have speculative characteristics with respect to the issuer’s ability to pay interest and principal and their susceptibility to
default or decline in market value. The Fund’s investments in securities of stressed, distressed or bankrupt issuers, including securities or obligations that are in default, generally trade significantly below par and are considered speculative.
There is even a potential risk of loss by the Fund of its entire investment in such securities. There are a number of significant risks inherent in the bankruptcy process. A bankruptcy filing by an issuer may adversely and permanently affect the
market position and operations of the issuer. If an issuer of securities held by the Fund declares bankruptcy or otherwise fails to pay principal or interest on such securities, the Fund would experience a decrease in income and a decline in the
market value of its investments.
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Interest Rate Risks [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Interest Rate Risk. Debt securities have varying levels of sensitivity to changes in interest rates. In general, the price of a debt security can fall when
interest rates rise and can rise when interest rates fall. Securities with longer maturities and mortgage securities can be more sensitive to interest rate changes although they usually offer higher yields to compensate investors for the greater
risks. The longer the maturity of the security, the greater the impact a change in interest rates could have on the security’s price. In addition, short-term and long-term interest rates do not necessarily move in the same amount or the same
direction. Short-term securities tend to react to changes in short-term interest rates and long-term securities tend to react to changes in long-term interest rates.
|
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Credit Risks [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Credit Risk. Fixed income securities rated B or below by S&Ps or Moody’s may be purchased by the Fund. These securities have speculative characteristics and
changes in economic conditions or other circumstances are more likely to lead to a weakened capacity of those issuers to make principal or interest payments, as compared to issuers of more highly rated securities.
|
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Extension Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Extension Risk. The Fund is subject to the risk that an issuer will exercise its right to pay principal on an obligation held by that Fund (such as
mortgage-backed securities) later than expected. This may happen when there is a rise in interest rates. These events may lengthen the duration (i.e. interest rate sensitivity) and potentially reduce the value of these securities.
|
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Debt Security Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Debt Security Risk. In addition to interest rate risk, call risk and extension risk, debt securities are also subject to the risk that they may also lose value if
the issuer fails to make principal or interest payments when due, or the credit quality of the issuer falls.
|
||||||
Market Discount from Net Asset Value Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Market Discount from Net Asset Value Risk. Shares of closed-end investment companies frequently trade at a discount from their net asset value. This
characteristic is a risk separate and distinct from the risk that the Fund’s net asset value could decrease as a result of its investment activities and may be greater for investors expecting to sell their Shares in a relatively short period
following completion of the Offering. The net asset value of the Shares will be reduced immediately following the Offering as a result of (i) the Subscription Price likely being lower than NAV and (ii) the payment of certain costs of the Offering.
Whether investors will realize gains or losses upon the sale of the Shares will depend not upon the Fund’s net asset value but entirely upon whether the market price of the Shares at the time of sale is above or below the investor’s purchase price
for the Shares. Because the market price of the Shares will be determined by factors such as relative supply of and demand for the Shares in the market, general market and economic conditions, and other factors beyond the control of the Fund, the
Fund cannot predict whether the Shares will trade at, below or above net asset value.
|
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Leverage Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Leverage Risk. Transactions by underlying funds may give rise to a form of economic leverage. These transactions may include, among others, derivatives, and may
expose the underlying fund to greater risk and increase its costs. The use of leverage by underlying funds may cause such funds to liquidate their portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet any
required asset segregation requirements. Increases and decreases in the value of an underlying fund’s portfolio will be magnified when it uses leverage. Leverage, including borrowing, may cause an underlying fund to be more volatile than if such fund
had not been leveraged.
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Defensive Position Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Defensive Position Risk. During periods of adverse market or economic conditions, the Fund may temporarily invest all or a substantial portion of its net assets
in cash or cash equivalents. The Fund would not be pursuing its investment objective in these circumstances and could miss favorable market developments.
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Changes in Policies Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Changes in Policies Risk. The Fund’s Trustees may change the Fund’s investment objective, investment strategies and non-fundamental investment restrictions
without shareholder approval, except as otherwise indicated.
|
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Preferred Stock Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Preferred Stock Risk. The Fund may invest in preferred stocks. Preferred stock, like common stock, represents an equity ownership in an issuer. Generally,
preferred stock has a priority of claim over common stock in dividend payments and upon liquidation of the issuer. Unlike common stock, preferred stock does not usually have voting rights. Preferred stock in some instances is convertible into common
stock. Although they are equity securities, preferred stocks have characteristics of both debt and common stock. Like debt, their promised income
is contractually fixed. Like common stock, they do not have rights to precipitate bankruptcy proceedings or collection activities in the event of missed payments. Other equity characteristics are their subordinated position
in an issuer’s capital structure and that their quality and value are heavily dependent on the profitability of the issuer rather than on any legal claims to specific assets or cash flows.
Investment in preferred stocks carries risks, including credit risk, deferral risk, redemption risk, limited voting rights, risk of subordination and lack of liquidity. Fully taxable or hybrid preferred securities typically
contain provisions that allow an issuer, at its discretion, to defer distributions for up to 20 consecutive quarters. Distributions on preferred stock must be declared by the board of trustees and may be subject to deferral, and thus they may not be
automatically payable. Income payments on preferred stocks may be cumulative, causing dividends and distributions to accrue even if not declared by the company’s board or otherwise made payable, or they may be non-cumulative, so that skipped
dividends and distributions do not continue to accrue. There is no assurance that dividends on preferred stocks in which the Fund invests will be declared or otherwise made payable. The Fund may invest in non-cumulative preferred stock, although the
Fund’s Investment Committee would consider, among other factors, their non-cumulative nature in making any decision to purchase or sell such securities.
Shares of preferred stock have a liquidation value that generally equals the original purchase price at the date of issuance. The market values of preferred stock may be affected by favorable and unfavorable changes
impacting the issuers’ industries or sectors, including companies in the utilities and financial services sectors, which are prominent issuers of preferred stock. They may also be affected by actual and anticipated changes or ambiguities in the tax
status of the security and by actual and anticipated changes or ambiguities in tax laws, such as changes in corporate and individual income tax rates, and in the dividends received deduction for corporate taxpayers or the lower rates applicable to
certain dividends.
Because the claim on an issuer’s earnings represented by preferred stock may become onerous when interest rates fall below the rate payable on the stock or for other reasons, the issuer may redeem preferred stock, generally
after an initial period of call protection in which the stock is not redeemable. Thus, in declining interest rate environments in particular, the Fund’s holdings of higher dividend paying preferred stocks may be reduced and the Fund may be unable to
acquire securities paying comparable rates with the redemption proceeds. In the event of a redemption, the Fund may not be able to reinvest the proceeds at comparable rates of return.
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Convertible Securities Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Convertible Securities Risk. The Fund may invest in convertible securities. Convertible securities include fixed income securities that may be exchanged or
converted into a predetermined number of shares of the issuer’s underlying common stock at the option of the holder during a specified period. Convertible securities may take the form of convertible preferred stock,
convertible bonds or debentures, units consisting of “usable” bonds and warrants or a combination of the features of several of these securities. The investment characteristics of each convertible security vary widely, which allows convertible
securities to be employed for a variety of investment strategies. The Fund will exchange or convert convertible securities into shares of underlying common stock when, in the opinion of the Fund’s Investment Committee, the investment characteristics
of the underlying common shares will assist the Fund in achieving its investment objective. The Fund may also elect to hold or trade convertible securities. In selecting convertible securities, the Fund’s Investment Committee evaluates the investment
characteristics of the convertible security as a fixed income instrument, and the investment potential of the underlying equity security for capital appreciation. In evaluating these matters with respect to a particular convertible security, the
Fund’s Investment Committee considers numerous factors, including the economic and political outlook, the value of the security relative to other investment alternatives, trends in the determinants of the issuer’s profits, and the issuer’s management
capability and practices.
The value of a convertible security, including, for example, a warrant, is a function of its “investment value” (determined by its yield in comparison with the yields of other securities of comparable maturity and quality
that do not have a conversion privilege) and its “conversion value” (the security’s worth, at market value, if converted into the underlying common stock). The investment value of a convertible security is influenced by changes in interest rates,
with investment value declining as interest rates increase and increasing as interest rates decline. The credit standing of the issuer and other factors may also have an effect on the convertible security’s investment value. The conversion value of a
convertible security is determined by the market price of the underlying common stock. If the conversion value is low relative to the investment value, the price of the convertible security is governed principally by its investment value. Generally,
the conversion value decreases as the convertible security approaches maturity. To the extent the market price of the underlying common stock approaches or exceeds the conversion price, the price of the convertible security will be increasingly
influenced by its conversion value. A convertible security generally will sell at a premium over its conversion value by the extent to which investors place value on the right to acquire the underlying common stock while holding a fixed income
security. A convertible security may be subject to redemption at the option of the issuer at a price established in the convertible security’s governing instrument. If a convertible security held by the Fund is called for redemption, the Fund will be
required to permit the issuer to redeem the security, convert it into the underlying common stock or sell it to a third party. Any of these actions could have an adverse effect on the Fund’s ability to achieve its investment objective.
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Issuer Specific Changes Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Issuer Specific Changes Risk. Changes in the financial condition of an issuer, changes in the specific economic or political conditions that affect a particular
type of security or issuer, and changes in general economic or political conditions can affect the credit quality or value of an issuer’s securities. Lower-quality debt securities tend to be more sensitive to these changes than higher-quality debt
securities.
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Anti-Takeover Provisions Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Anti-Takeover Provisions Risk. The Fund’s Charter and Bylaws include provisions that could limit the ability of other persons or entities to acquire control of
the Fund or to cause it to engage in certain transactions or to modify its structure.
|
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Common Stock Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Common Stock Risk. The Fund invests in common stocks. Common stocks represent an ownership interest in a company. The Fund may also invest in securities that can
be exercised for or converted into common stocks (such as convertible preferred stock). Common stocks and similar equity securities are more volatile and riskier than some other forms of investment. Therefore, the value of your investment in the Fund
may sometimes decrease instead of increase. Common stock prices fluctuate for many reasons, including adverse events such as unfavorable earnings reports, changes in investors’ perceptions of the financial condition of an issuer, the general
condition of the relevant stock market or when political or economic events affecting the issuers occur. In addition, common stock prices may be sensitive to rising interest rates, as the costs of capital rise and borrowing costs increase for
issuers. Because convertible securities can be converted into equity securities, their values will normally increase or decrease as the values of the underlying equity securities increase or decrease. The common stocks in which the Fund invests are
structurally subordinated to preferred securities, bonds and other debt instruments in a company’s capital structure in terms of priority to corporate income and assets and, therefore, will be subject to greater risk than the preferred securities or
debt instruments of such issuers.
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Exchange Traded Funds Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Exchange Traded Funds Risk. The Fund may invest in exchange-traded funds, which are investment companies that, in some cases, aim to track or replicate a desired
index, such as a sector, market or global segment. ETFs are passively or, to a lesser extent, actively managed and their shares are traded on a national exchange. ETFs do not sell individual shares directly to investors and only issue their shares in
large blocks known as “creation units.” The investor purchasing a creation unit may sell the individual shares on a secondary market. Therefore, the
liquidity of ETFs depends on the adequacy of the secondary market. There can be no assurance that an ETF’s investment objective will be achieved, as ETFs based on an index may not replicate and maintain exactly the
composition and relative weightings of securities in the index. ETFs are subject to the risks of investing in the underlying securities. The Fund, as a holder of the securities of the ETF, will bear its pro rata portion of the ETF’s expenses,
including advisory fees. These expenses are in addition to the direct expenses of the Fund’s own operations.
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Illiquid Securities Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Illiquid Securities Risk. The Fund may invest up to 10% of its net assets in illiquid securities. Illiquid securities may offer a higher yield than securities
which are more readily marketable, but they may not always be marketable on advantageous terms. The sale of illiquid securities often requires more time and results in higher brokerage charges or dealer discounts than does the sale of securities
eligible for trading on national securities exchanges or in the over-the-counter markets. A security traded in the U.S. that is not registered under the Securities Act will not be considered illiquid if Fund management determines that an adequate
investment trading market exists for that security. However, there can be no assurance that a liquid market will exist for any security at a particular time.
|
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Portfolio Turnover Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Portfolio Turnover Risk. The Fund cannot predict its securities portfolio turnover rate with certain accuracy. Higher portfolio turnover rates could result in
corresponding increases in brokerage commissions and may generate short-term capital gains taxable as ordinary income.
|
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Small and Medium Cap Company Risk [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Risk [Text Block] | Small and Medium Cap Company Risk. Compared to investment companies that focus only on large capitalization companies, the Fund’s share price may be more
volatile because it also invests in small and medium capitalization companies. Compared to large companies, small and medium capitalization companies are more likely to have (i) more limited product lines or markets and less mature businesses, (ii)
fewer capital resources, (iii) more limited management depth and (iv) shorter operating histories. Further, compared to large cap stocks, the securities of small and medium capitalization companies are more likely to experience sharper swings in
market values, be harder to sell at times and at prices that the Fund’s Investment Committee believes appropriate, and offer greater potential for gains and losses.
|
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Common Shares [Member] | |||||||
General Description of Registrant [Abstract] | |||||||
Share Price | $ 6.76 | $ 7.15 | $ 9.92 | $ 6.76 | $ 8.10 | $ 8.24 | |
NAV Per Share | $ 7.43 | $ 7.87 | $ 9.31 | $ 7.43 | $ 8.65 | $ 9.49 | $ 9.69 |
Latest Premium (Discount) to NAV [Percent] | (9.02%) | ||||||
Capital Stock, Long-Term Debt, and Other Securities [Abstract] | |||||||
Outstanding Security, Not Held [Shares] | 17,530,463 | 17,530,463 | 9,487,873 |
1 Year High Income Securities Chart |
1 Month High Income Securities Chart |
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