High Income Securities FundNYSE: PCF

MILWAUKEE, Sept. 16, 2024 (GLOBE NEWSWIRE) -- High Income Securities Fund (the “Fund”) (NYSE: PCF) announced today that a special meeting of shareholders will be held on Friday, October 18, 2024 at 10:30 am at the office of Bulldog Investors, LLP, 250 Pehle Avenue, Suite 708, Saddle Brook, NJ 07663 to consider, among other things, (1) the Fund entering into an investment advisory agreement with Bulldog Investors, LLP, and (2) changes to the Fund's investment strategies and fundamental policies in order to expand the types of investments the Fund can make and to increase the Fund's ability to pursue attractive investment opportunities. Shortly after the special meeting is held, the Fund's Board of Trustees intends to authorize a tender offer by the Fund to purchase at least (a) 90% of the number of shares issued in the rights offering that concluded on August 9, 2024 if the proposals are adopted, or (b) 60% of the number of shares issued in the rights offering if the proposals are not adopted, at a price of at least 98% of NAV.

High Yield Securities has recently declared a "Rights Offering" which, on its face, doesn't appear all that enticing. The Offering contains a price discount described in a complex formula; but you can buy shares at the same price in the market, so why bother with the rights offering? When we read the fine print, we see a silver lining; the Rights Offering is a "prelude" to what looks to be a more attractive Tender Offer later on.

NEW YORK--(BUSINESS WIRE)--High Income Securities Fund (NYSE: PCF) announced today that the record date for the previously announced monthly distribution of $0.0622 per share payable on June 28, 2024 has been changed from June 19, 2024 to June 18, 2024.

The High Income Securities Fund provides a current yield of 11.64%, which is competitive with other similar funds. While the fund's share price has remained stable in recent months, the majority of its returns come from distributions. The fund has a significant allocation in other closed-end funds and has decreased its investments in business development companies.

PCF is a closed-end fund managed by Bulldog Investors, known for shareholder activism campaigns. The fund's strategy is to acquire CEFs and BDCs that pay regular distributions at attractive discounts, with a small allocation to SPACs. PCF's performance has been underwhelming, and it currently trades at a discount to NAV. Better alternatives may exist.

The High Income Securities Fund (HIX) is a closed-end fund that focuses on generating high income through investments in closed-end funds, business development companies, and other high-yielding investment management firms. The fund's current yield of 11.07% is in line with many fixed-income closed-end funds in the market, but it is not a fixed-income fund. The fund's distribution has been declining since 2020, which may be a concern for income-seeking investors. The fund's net asset value has also declined over the past year.

High Income Securities Fund offers a remarkable 12.04% yield, but this high yield may indicate an expectation of future reduction. The fund's portfolio consists of common equity securities issued by business development companies, which are quite rare to find in any closed-end fund. The fund's distribution has been inconsistent in the past, and its ability to sustain its current distribution is uncertain.