N-2 - USD ($)
$ / shares in Units, $ in Thousands |
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6 Months Ended |
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May 31, 2024 |
May 31, 2024 |
Apr. 30, 2024 |
Mar. 28, 2024 |
Feb. 29, 2024 |
Jan. 31, 2024 |
Dec. 29, 2023 |
Nov. 30, 2023 |
Nov. 30, 2022 |
Nov. 30, 2021 |
Nov. 30, 2020 |
Nov. 30, 2019 |
Nov. 30, 2018 |
Nov. 30, 2017 |
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
| Cover [Abstract] |
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| Entity Central Index Key |
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0001559991
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| Amendment Flag |
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false
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| Document Type |
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N-CSRS
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| Entity Registrant Name |
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Flaherty
& Crumrine Dynamic Preferred and Income Fund Incorporated
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| Financial Highlights [Abstract] |
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| Senior Securities [Table Text Block] |
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Senior
Securities
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5/31/2024*
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11/30/2023
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11/30/2022
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11/30/2021
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11/30/2020
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11/30/2019
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Total
Debt Outstanding,
End of Period (000s)(1)
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$276,300
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$276,300
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$276,300
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$276,300
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$252,200
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$252,200
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Asset
Coverage per $1,000 of Debt(2)
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2,574
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2,464
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2,551
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2,953
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3,017
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2,991
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11/30/2018
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11/30/2017
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11/30/2016
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11/30/2015
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11/30/2014
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Total
Debt Outstanding, End of Period (000s)(1)
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$252,200
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$252,200
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$241,300
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$241,300
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$235,500
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Asset
Coverage per $1,000 of Debt(2)
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2,749
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2,997
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2,916
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2,939
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3,018
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| * |
Unaudited |
| (1) |
See Note 7.
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| (2) |
Calculated by subtracting the Fund’s total liabilities (excluding the loan) from the Fund’s total
assets and dividing that amount by the loan outstanding in 000’s. |
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| General Description of Registrant [Abstract] |
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| Investment Objectives and Practices [Text Block] |
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Investment
Objective and Policies
The
Fund’s investment objective is to seek total return, with an emphasis on high current income. The Fund’s investment objective
is considered non-fundamental and may be changed by the Fund’s Board of Directors (the “Board of Directors”) without
shareholder approval. However, the Fund’s investment objective and its 80% policy described below may only be changed upon 60 days’
prior written notice to the Fund’s shareholders.
Under
normal market conditions, the Fund invests at least 80% of its Managed Assets (defined below)
in a portfolio of preferred and other income-producing securities issued by U.S. and non-U.S.
companies. Preferred and other income-producing securities may include, among other things, traditional preferred stock, trust preferred
securities, hybrid securities that have characteristics of both equity and debt securities, contingent capital securities (“CoCos”),
subordinated debt and senior debt. “Managed Assets” are the Fund’s net assets, plus the principal amount of loans from
financial institutions or debt securities issued by the Fund, the liquidation preference of preferred stock issued by the Fund, if any,
and the proceeds of any reverse repurchase agreements entered into by the Fund.
The
Fund will invest, under normal market conditions, more than 25% of its total assets in the financials
sector, which for this purpose is comprised of the bank, thrifts & mortgage finance, diversified
financial services, finance, consumer finance, capital markets, asset management & custody, investment banking & brokerage, insurance,
insurance brokerage and real estate investment trust (“REIT”) industries. From time
to time, the Fund may have 25% or more of its total assets invested in any one of these industries.
For example, the Fund could have more than 25% of its total assets in insurance companies, while
at other times it could have that portion invested in banks. At all times, though, the Fund
would have at least 25% of its total assets invested in the financials sector. In addition, the Fund also may focus its investments in
other sectors or industries, such as (but not limited to) energy, industrials, utilities, communications and pipelines. The Adviser retains
broad discretion to allocate the Fund’s investments as it deems appropriate considering current market and credit conditions.
The
Fund may invest up to 100% of its Managed Assets in securities of U.S. companies, and may also invest up to 100% of its Managed
Assets in securities of non-U.S. companies. In addition, the Fund may invest its Managed Assets
in U.S. dollar-denominated American Depositary Receipts (“ADRs”), U.S. dollar-denominated
foreign stocks traded on U.S. exchanges and U.S. dollar-denominated and non-U.S. dollar-denominated securities issued by companies organized
or headquartered in foreign countries and/or doing significant business outside the United States.
The
Fund will invest at least 80% of its Managed Assets in (i) investment
grade quality securities or (ii) below investment grade quality securities of companies with investment grade senior unsecured debt outstanding,
in either case determined at the time of purchase. In addition, for purposes of this 80% policy,
such securities may include unrated securities that the Adviser deems to be comparable in quality
to rated issues in which the Fund is authorized to invest. Some of the Fund’s Managed
Assets may be invested in securities rated (or issued by companies rated) below investment grade at the time of purchase. Securities that
are rated below investment grade are commonly referred to as “high yield” or “junk
bonds.” Securities of below investment grade quality are regarded as having predominantly
speculative characteristics with respect to capacity to pay dividends and interest and repayment of principal. Due to the risks involved
in investing in securities of below investment grade quality, an investment in the Fund should be considered speculative.
The
maturities of securities in which the Fund will invest generally will be longer-term (perpetual,
in the case of many preferred securities and CoCos, and ten years or more for other preferred
and debt securities); however, as a result of changing market conditions and interest rates, the Fund may also invest in shorter-term
securities. The Fund can buy securities of any maturity or duration. Duration is the sensitivity,
expressed in years, of the price of a fixed-income security to changes in the general level
of interest rates (or yields). Securities with longer durations tend to be more sensitive to interest rate (or yield) changes than securities
with shorter durations. For example, a three-year duration means a bond is expected to decrease
in value by 3% if interest rates rise by 1% and increase in value by 3%
if interest rates fall by 1%.
The
portion of the Fund’s Managed Assets not invested in preferred and other income-producing securities may be invested in, among other
securities, common stocks, money market instruments, money market mutual funds, asset- backed
securities, and securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities (“Government Securities”)
and such obligations which are subject to repurchase agreements and commercial paper. Depending on market conditions, these investments
may at times have a higher or lower yield than preferred securities and other income-producing securities in which the Fund invests.
Unless
designated as a “fundamental” policy or restriction, the investment limitations and policies of the Fund may be changed by
the Board of Directors without shareholder approval.
Primary
Investment Strategies and Techniques
Preferred
Securities. Preferred securities share many investment characteristics with both bonds and
common stock; therefore, the risks and potential rewards of investing in the Fund may at times be similar to the risks of investing in
equity-income funds or both equity funds and bond funds. Similar to bonds, preferred securities,
which generally pay fixed- or adjustable-rate dividends or interest to investors, have preference over common stock in the payment of
dividends or interest and the liquidation of a company’s assets, which means that a company
typically must pay dividends or interest on its preferred securities before paying any dividends
on its common stock. On the other hand, like common stock, preferred securities are junior to
all forms of the company’s debt, including both senior and subordinated debt, and the
company can skip or defer dividend or interest payments for extended periods of time without triggering an event of default.
Further, different types of preferred securities can be junior or senior to other types of preferred
securities in both priority of payment of dividends or interest and/or the liquidation of a company’s
assets.
Preferred
securities can be structured differently for retail and institutional investors, and the Fund may purchase either structure. The retail
segment is typified by $25 par securities that are listed on a stock exchange and which trade and are quoted with accreted dividend or
interest income included in the price. The institutional segment is typified by $1,000 par value securities that
are not exchange-listed, trade over-the-counter (“OTC”) and are quoted on a “clean”
price, i.e., without accrued dividend or interest income included in the price.
While
preferred securities can be issued with a final maturity date, others (including most traditional
preferred stock) are perpetual in nature. In certain instances, a final maturity date may be extended and/or the final payment of principal
may be deferred at the issuer’s option for a specified time without any adverse consequence to the issuer.
No redemption can typically take place unless all cumulative payment obligations to preferred
security investors have been met, although issuers may be able to engage in open-market repurchases
without regard to any cumulative dividends or interest payable, and many preferred securities are non-cumulative, whereby the issuer does
not have an obligation to make up any arrearages to holders of such securities.
Debt
Securities. The Fund may invest in a variety of debt securities, including corporate senior
or subordinated debt securities and U.S. government securities. Corporate debt securities are
fixed-income securities issued by businesses to finance their operations. The issuer pays the investor a fixed or variable rate of interest
and normally must repay the amount borrowed on or before maturity. Notes, bonds, debentures
and commercial paper are the most common types of corporate debt securities, with the primary
difference being their maturities and secured or unsecured status.
Contingent
Capital Securities.
Contingent capital securities or “CoCos” have features similar to preferred and other income producing securities but also
include “loss absorption” or mandatory conversion provisions that make the securities more like equity. An automatic write-down
or conversion event is typically triggered by a reduction in the capital level of the issuer, but may also be triggered by regulatory
actions (e.g., a change in capital requirements) or by other factors.
Illiquid
Securities. The Fund may invest without limit in instruments that lack a secondary trading
market or are otherwise considered illiquid. Generally, illiquid securities are securities that cannot
be disposed of within seven days in the ordinary course of business at approximately the value at which the Fund has valued the securities.
Fundamental
Investment Restrictions. The Fund has adopted certain fundamental investment restrictions
that may not be changed without the approval of the holders of a majority of the outstanding voting securities, voting together as a single
class, and of the holders of a majority of the outstanding Preferred Shares voting as a separate class. A “majority of the outstanding
voting securities” for this purpose means the lesser of (1) 67% or more of the Common Shares and, if issued, preferred stock (“Preferred
Shares”) present at a meeting of the shareholders, voting together as single class, if the holders of more than 50% of such shares
are present or represented by proxy at the meeting, or (2) more than 50% of the outstanding Common Shares and outstanding Preferred Shares,
voting together as a single class. A majority of the Fund’s outstanding Preferred Shares for this purpose is more than half of the
outstanding Preferred Shares. For purposes of the restrictions listed below, all percentage limitations apply immediately after acquisition,
and any subsequent change in any applicable percentage resulting from market fluctuations does not require elimination or reduction of
any security from the Fund’s portfolio. Under its fundamental restrictions:
1.The
Fund may not issue senior securities (including borrowing money for other than temporary purposes) except in conformity with the limits
set forth in the 1940 Act or pursuant to exemptive relief therefrom; or pledge, mortgage or hypothecate its assets other than to secure
such issuances or borrowings or in connection with permitted investment strategies, provided that, notwithstanding the foregoing, the
Fund may borrow up to an additional 5% of its total assets for temporary purposes.
2.The
Fund may not act as an underwriter of securities issued by other persons, except insofar as the Fund may be deemed an underwriter in connection
with the disposition of securities.
3.The
Fund may not purchase or sell real estate, except that the Fund may invest in securities of companies that deal in real estate or are
engaged in the real estate business, including REITs, and loans and other securities secured by real estate or interests therein, and
the Fund may hold and sell real estate acquired through default, liquidation, or other distributions of an interest in real estate as
a result of the Fund’s ownership of such securities and loans.
4.The
Fund may not make loans to other persons except through the lending of securities held by it or in connection with permitted investment
strategies (but not to exceed a value of one-third of total assets), through the use of repurchase agreements, by the purchase of debt
securities and in connection with permitted investment strategies.
5.The
Fund may not invest more than 25% of its total assets in securities of issuers in a single industry, except that (i) this limitation will
not be applicable to the purchase of Government Securities and (ii) the Fund will invest, under normal market conditions, more than at
least 25% of its total assets in the financials sector, which for this purpose is comprised of the bank, thrifts & mortgage finance,
diversified financial services, finance, consumer finance, capital markets, asset management & custody, investment banking & brokerage,
insurance, insurance brokerage and REIT industries. From time to time, the Fund may have 25% or more of its total assets invested in any
one of these industries.
6.The
Fund may purchase and sell commodities or commodity contracts, including futures contracts, to the maximum extent permitted by law.
With
respect to investment restriction number 5, the Fund, for example, could have more than 25% of its total assets in insurance companies,
while at other times it could have that portion invested in banks. At all times, though, the Fund would have at least 25% of its total
assets invested in the financials sector. In addition, the Fund also may focus its investments in other sectors or industries, such as
(but not limited to) energy, industrials, utilities, and pipelines. The Adviser retains broad discretion to allocate the Fund’s
investments as it deems appropriate in light of current market and credit conditions.
The
Fund is currently classified as “diversified” under the 1940 Act. In general, this means that the Fund may not purchase securities
of an issuer (other than obligations issued or guaranteed by the US Government, its agencies or instrumentalities and securities of other
investment companies) if, with respect to 75% of its total assets, (a) more than 5% of the Fund’s total assets would be invested
in securities of that issuer or (b) the Fund would hold more than 10% of the outstanding voting securities of that issuer. With respect
to the remaining 25% of its total assets, the Fund can invest more than 5% of its assets in one issuer. Under the 1940 Act, the Fund cannot
change its classification from diversified to non-diversified without shareholder approval.
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| Risk Factors [Table Text Block] |
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Principal
Risks of the Fund
The
Fund is a diversified, closed-end management investment company designed primarily as a long-term
investment and not as a trading vehicle. The Fund is not intended to be a complete investment
program and, due to the uncertainty inherent in all investments, there can be no assurance that
the Fund will achieve its investment objective. Different risks may be more significant at different times depending on market conditions.
Market
Events Risk. Market disruption can be caused by economic, financial or political events
and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine), geopolitical
developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern
Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The
extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the
impact of other risks to the Fund. These and other similar events could adversely affect the
U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative
impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or
long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers
located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may
be negatively impacted.
Preferred,
Contingent Capital and Other Subordinated Securities Risk. Preferred, contingent
capital and other subordinated securities rank lower than bonds and other debt instruments in a company’s capital structure and
therefore are subject to greater credit risk than those debt instruments. Distributions on some types of these securities may also be
skipped or deferred by issuers without causing a default. Finally, some of these securities typically have special redemption rights that
allow the issuer to redeem the security at par earlier than scheduled. If this occurs, the Fund may be forced to reinvest in lower yielding
securities.
Contingent
Capital Securities Risk. Contingent capital securities or “CoCos” have features
and risks similar to preferred and other income producing securities but also include “loss absorption” or mandatory conversion
provisions and restrictions on dividend or interest payments that make the securities more like
equity. This is particularly true in the financial sector, the largest preferred issuer segment.
In
one version of a CoCo, the security has loss absorption characteristics whereby the liquidation
value of the security may be adjusted downward to below the original par value (even to zero)
under certain circumstances. This may occur, for instance, in the event that business losses have eroded capital to a substantial extent.
The write down of the par value would occur automatically and would not entitle the holders to seek bankruptcy of the company. In addition,
an automatic write-down could result in a reduced income rate if the dividend or interest payment
is based on the security’s par value. Such securities may, but are not required to, provide
for circumstances under which the liquidation value may be adjusted back up to par, such as an improvement in capitalization and/or earnings.
Another
version of a CoCo provides for mandatory conversion of the security into common shares of the
issuer under certain circumstances. The mandatory conversion might relate, for instance, to maintenance of a capital minimum, whereby
falling below the minimum would trigger automatic conversion. Since the common stock of the issuer may not pay a dividend, investors in
these instruments could experience a reduced income rate, potentially to zero, and conversion
would deepen the subordination of the investor, hence worsening the Fund’s standing in
a bankruptcy. In addition, some such instruments also provide for an automatic write-down if
the price of the common stock is below the conversion price on the conversion date.
An
automatic write-down or conversion event is typically triggered by a reduction in the capital
level of the issuer, but may also be triggered by regulatory actions (e.g., a change in capital
requirements) or by other factors. In addition, interest or dividend payments may be reduced or eliminated if certain earnings or capital
levels are breached.
Trust
Preferred Securities Risk. Some preferred securities are issued by trusts or other special
purpose entities established by operating companies and are not a direct obligation of an operating company. In some cases, when investing
in hybrid-preferred securities issued by trusts or other special purpose entities, the Fund may not have recourse against the operating
company in the event that the trust or other special purpose entity cannot pay the obligation and therefore, the Fund
may lose some or all of the value of its investments in the hybrid-preferred security.
Concentration
Risk. The Fund invests 25% or more of its total
assets in the financials sector. This policy makes the Fund more susceptible to adverse economic
or regulatory occurrences affecting the financials sector.
Financials
Sector Risk. The financials sector is especially subject to the adverse effects
of economic recession, currency exchange rates, government regulation, decreases in the availability of capital, volatile interest rates,
portfolio concentrations in geographic markets and in commercial and residential real estate
loans, and competition from new entrants in their fields of business.
U.S.
and foreign laws and regulations require banks and bank holding companies to maintain minimum levels of capital
and liquidity and to establish loan loss reserves. A bank’s failure to maintain specified
capital ratios may trigger dividend restrictions, suspensions on payments on subordinated debt, preferred securities and contingent capital
securities, and limitations on growth. Bank regulators have broad authority in these instances and can ultimately impose sanctions, such
as imposing resolution authority, conservatorship or receivership, on such non-complying banks even when these banks continue to be solvent,
thereby possibly resulting in the elimination of stockholders’ equity. Unless a bank holding company has subsidiaries other than
banks that generate substantial revenues, the holding company’s cash flow and ability to declare dividends may be impaired severely
by restrictions on the ability of its bank subsidiaries to declare dividends or ultimately to redeem its securities (as they mature).
Similarly,
U.S. and foreign laws and regulations require insurance companies to maintain minimum levels of capital and liquidity. An insurance company’s
failure to maintain these capital ratios may also trigger dividend restrictions, suspensions on
payments of subordinated debt, and limitations on growth. Insurance regulators (at the state-level
in the United States) have broad authority in these instances and can ultimately impose sanctions, including conservatorship or receivership,
on such non-complying insurance companies even when these companies continue to be solvent,
thereby possibly resulting in the elimination of shareholders’ equity. In addition, insurance regulators have extensive authority
in some categories of insurance of approving premium levels and setting required levels of underwriting.
Companies
engaged in stock brokerage, commodity brokerage, investment banking, investment management or related investment advisory services are
closely tied economically to the securities and commodities markets and can suffer during a
decline in either market. These companies also are subject to the regulatory environment and
changes in regulations, pricing pressure, the availability of funds to borrow and interest rates.
Credit
Risk. Credit risk is the risk that an issuer of a security will be unable or unwilling to
make dividend, interest and principal payments when due and the related risk that the value
of a security may decline because of concerns about the issuer’s ability to make such payments. Credit risk may be heightened for
the Fund because the Fund may invest in “high yield” or “high risk” securities; such securities, while generally
offering higher yields than investment grade securities with similar maturities, involve greater risks, including the possibility of default
or bankruptcy, and are regarded as predominantly speculative with respect to the issuer’s capacity to pay dividends and interest
and repay principal.
High
Yield Securities Risk. Although high yield securities generally pay higher rates of interest
than investment grade securities, high yield securities are high-risk investments that may cause income and principal
losses for the Fund. High yield securities may be issued by less creditworthy issuers. Issuers of high yield securities may have a larger
amount of outstanding debt relative to their assets than issuers of investment grade securities. In the event of an issuer’s bankruptcy,
claims of other creditors may have priority over the claims of high yield bond holders, for
example, leaving few or no assets available to repay high yield bond holders. Prices of high yield securities are subject to
extreme
price fluctuations. Adverse changes in an issuer’s industry and general economic conditions may have a greater
impact on the prices of high yield securities than on other higher rated fixed-income securities.
Issuers of high yield securities may be unable to meet their interest or principal payment obligations because of an economic downturn,
specific issuer developments, or the unavailability of additional financing. High yield securities frequently have redemption features
that permit an issuer to repurchase the security from the Fund before it matures. If the issuer redeems high
yield securities, the Fund may have to invest the proceeds in securities with lower yields and
may lose income. High yield securities may be less liquid than higher rated fixed-income securities, even under normal economic conditions.
There may be significant differences in the prices quoted for high yield securities by dealers in the market. Because they are less liquid,
judgment may play a greater role in valuing certain of the Fund’s securities than is the case
with securities trading in a more liquid market. The Fund may incur expenses to the extent necessary
to seek recovery upon default or to negotiate new terms with a defaulting issuer. The credit rating of a high yield security does not
necessarily address its market value risk. Ratings and market value may change from time to time, positively or negatively, to reflect
new developments regarding the issuer.
Credit
Agency Risk. Credit ratings are determined by credit rating agencies and are the opinions
of such entities. A rating assigned by a rating agency is not an absolute standard of credit quality and does not evaluate a security’s
market risk or liquidity. Any shortcomings or inefficiencies in credit rating agencies’ processes for determining credit ratings
may adversely affect the credit ratings of securities held by the Fund and, as a result, may adversely affect those securities’
perceived or actual credit risk.
Interest
Rate and Duration Risk. Interest rate risk is the risk that securities will decline in value
because of changes in market interest rates. For fixed rate securities, when market interest rates rise, the market value of such securities
generally will fall. Investments in fixed rate securities with long-term maturities may experience significant price declines
if long-term interest rates increase. During periods of rising interest rates, the average life
of certain types of securities may be extended because of slower than expected redemptions or
prepayments. This may lock in a below- market yield, increase the security’s sensitivity
to changes in interest rates (“duration”) and further reduce the value of the security. Fixed rate securities with longer
durations tend to be more volatile than securities with shorter durations. The duration of a security
will be expected to change over time with changes in market factors and time to maturity.
The
market value of floating-rate and fixed-to-floating rate securities may fall in a declining
interest rate environment and may also fall in a rising interest rate environment
if there is a lag between the rise in interest rates and the interest rate reset. A secondary
risk associated with declining interest rates is the risk that income earned by the Fund on floating-rate and fixed-to-floating rate securities
may decline due to lower coupon payments on floating-rate securities.
Liquidity
Risk. The Fund may invest, without limit, in illiquid securities. From
time to time, certain securities held by the Fund may have limited marketability and may be
difficult to sell at favorable times or prices. It is possible that certain securities held
by the Fund will not be able to be sold in sufficient
amounts or in a sufficiently timely manner to raise the cash necessary to meet the Fund’s obligations, including potential repayment
of leverage borrowings, if any.
Foreign
Investment Risk. Because the Fund may invest its assets in foreign instruments, the value
of Fund shares can be adversely affected by political and economic developments abroad. Foreign markets may be smaller, less liquid and
more volatile than the major markets in the United States, and as a result, Fund share values may be more volatile. Trading in foreign
markets typically involves higher expense than trading in the United States. The Fund may have
difficulties enforcing its legal or contractual rights in a foreign country. Foreign legal systems
generally have
fewer
regulatory requirements than the U.S. legal system, particularly those of emerging markets. In general, less information is publicly available
with respect to non-U.S. companies than U.S. companies. Non-U.S. companies generally are not subject to the same accounting, auditing,
and financial reporting standards as are U.S. companies.
Reinvestment
Risk. Reinvestment risk is the risk that income from the Fund’s portfolio will decline
if the Fund invests proceeds from matured, traded or redeemed securities at market interest rates that are below the Fund portfolio’s
current earnings rate. For example, during periods of declining interest rates, the issuer of
a security may exercise its option to redeem a security, causing the Fund to reinvest the proceeds
into lower-yielding securities, which may result in a decline in the Fund’s income and distributions to Common Shareholders.
Selection
Risk. Selection risk is the risk that the securities selected by Fund management will under-perform
the markets, the relevant indices or the securities selected by other funds with similar investment objectives and investment strategies.
Management
Risk. The Fund is an actively managed portfolio and its success depends upon the investment
skills and analytical abilities of the Adviser to develop and effectively implement strategies that achieve the Fund’s investment
objective. Decisions made by the Adviser may cause the Fund to incur losses or to miss profit opportunities.
Leverage
Risk. Leverage is a
speculative technique and there are special risks and costs associated with leveraging. There is no assurance that leveraging strategy
will be successful. Leverage involves risks and special considerations for holders of Common Shares, including: the likelihood of greater
volatility of net asset value, market price and dividend rate of the Common Shares than a comparable portfolio without leverage; the risk
that fluctuations in the interest or dividend rates that the Fund must pay on any leverage will
reduce the return on the holders of the Common Shares; the effect of leverage in a declining
market, which is likely to cause a greater decline in the net asset value of the Common Shares than if the Fund were not leveraged,
which may result in a greater decline in the market price of the Common Shares; when the Fund
uses financial leverage, the management fees payable to the Adviser will be higher than if the Fund did not use leverage;
and leverage may increase operating costs, which may reduce total return.
Risk
of Market Price Discount from Net Asset Value.
Shares of closed-end funds frequently trade at a discount from their net asset value. This characteristic
is a risk separate and distinct from the risk that net asset value could decrease as a result of investment activities. We cannot predict
whether the Common Shares will trade at, above or below net asset value.
Valuation
Risk. Unlike publicly traded common stock that trades on national
exchanges, there is no central place or exchange for trading some of the preferred and other income securities owned by the Fund. Preferred,
contingent capital and debt securities generally trade on an OTC market which may be anywhere in the world where the buyer and seller
can settle on a price. Due to the lack of centralized information and trading, the valuation
of these securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial market, unreliable
reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing.
Reference
Rate Risk. The Fund may be exposed to debt securities, derivatives or other financial instruments
that recently transitioned or will transition in the future from the London Interbank Offered Rate, or “LIBOR,” as a “benchmark”
or “reference rate” for various interest rate calculations. LIBOR’s administrator, ICE Benchmark Administration, ceased
publishing most LIBOR settings (including some U.S. LIBOR settings) by the end of 2021 and
the
remaining (and most widely used) U.S. Dollar LIBOR settings after June 30, 2023. The United Kingdom Financial Conduct Authority, which
regulates LIBOR, will permit the use of synthetic U.S. dollar LIBOR rates for non-U.S. contracts through September 30, 2024, but any such
rates would be considered non-representative of the underlying market. Since 2018 the Federal Reserve Bank of New York has published the
Secured Overnight Financing Rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the
cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market. There is no assurance
that the composition or characteristics of SOFR or any such alternative reference rate will be similar to or produce the same value or
economic equivalence as LIBOR or that the market for SOFR-linked financial instruments will have the same volume or liquidity as did the
market for LIBOR-linked financial instruments prior to LIBOR’s discontinuance or unavailability. Neither the long-term effect of
the LIBOR transition process nor its ultimate success can yet be known.
Cybersecurity
Risk. Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause
the Fund, the Adviser, and/or their service providers (including, but not limited to,
fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or
loss of operational functionality or prevent fund investors from purchasing, redeeming or exchanging shares or receiving distributions.
The Fund and the Adviser have limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers,
and such third-party service providers may have limited indemnification obligations to the Fund or the Adviser. Cybersecurity incidents
may result in financial losses to the Fund and its shareholders, and substantial costs may be
incurred in order to prevent any future cybersecurity incidents. Issuers of securities in which
the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity
incidents.
Given
the risks described above, an investment in the Fund’s Common Shares may not
be appropriate for all investors. You should carefully consider your ability to assume these risks before making an investment in the
Fund.
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| Share Price [Table Text Block] |
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Per
Share of Common Stock
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Total
Dividends
Paid
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Net
Asset
Value |
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NYSE
Closing
Price
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Dividend
Reinvestment
Price(1)
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December
29, 2023 |
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$0.1040
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$20.44
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$17.75
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$17.91
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January
31, 2024 |
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0.1040
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20.84
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18.88
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18.80
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February
29, 2024 |
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0.1075
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20.89
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18.80
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18.76
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March
28, 2024 |
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0.1075
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21.17
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19.17
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18.76
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April
30, 2024 |
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0.1075
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20.70
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18.05
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18.20
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May
31, 2024 |
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0.1107
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21.18
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18.66
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18.72
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(1)Whenever
the net asset value per share of the Fund’s Common Stock is less than or equal to the market price per share on the reinvestment
date, new shares issued will be valued at the higher of net asset value or 95% of the then current market price. Otherwise, the reinvestment
shares of Common Stock will be purchased in the open market.
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| Capital Stock, Long-Term Debt, and Other Securities [Abstract] |
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| Document Period End Date |
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May 31, 2024
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| Market Events Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Market
Events Risk. Market disruption can be caused by economic, financial or political events
and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine), geopolitical
developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern
Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The
extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the
impact of other risks to the Fund. These and other similar events could adversely affect the
U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative
impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or
long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers
located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may
be negatively impacted.
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| Preferred Contingent Capital And Other Subordinated Securities Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Preferred,
Contingent Capital and Other Subordinated Securities Risk. Preferred, contingent
capital and other subordinated securities rank lower than bonds and other debt instruments in a company’s capital structure and
therefore are subject to greater credit risk than those debt instruments. Distributions on some types of these securities may also be
skipped or deferred by issuers without causing a default. Finally, some of these securities typically have special redemption rights that
allow the issuer to redeem the security at par earlier than scheduled. If this occurs, the Fund may be forced to reinvest in lower yielding
securities.
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| Contingent Capital Securities Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Contingent
Capital Securities Risk. Contingent capital securities or “CoCos” have features
and risks similar to preferred and other income producing securities but also include “loss absorption” or mandatory conversion
provisions and restrictions on dividend or interest payments that make the securities more like
equity. This is particularly true in the financial sector, the largest preferred issuer segment.
In
one version of a CoCo, the security has loss absorption characteristics whereby the liquidation
value of the security may be adjusted downward to below the original par value (even to zero)
under certain circumstances. This may occur, for instance, in the event that business losses have eroded capital to a substantial extent.
The write down of the par value would occur automatically and would not entitle the holders to seek bankruptcy of the company. In addition,
an automatic write-down could result in a reduced income rate if the dividend or interest payment
is based on the security’s par value. Such securities may, but are not required to, provide
for circumstances under which the liquidation value may be adjusted back up to par, such as an improvement in capitalization and/or earnings.
Another
version of a CoCo provides for mandatory conversion of the security into common shares of the
issuer under certain circumstances. The mandatory conversion might relate, for instance, to maintenance of a capital minimum, whereby
falling below the minimum would trigger automatic conversion. Since the common stock of the issuer may not pay a dividend, investors in
these instruments could experience a reduced income rate, potentially to zero, and conversion
would deepen the subordination of the investor, hence worsening the Fund’s standing in
a bankruptcy. In addition, some such instruments also provide for an automatic write-down if
the price of the common stock is below the conversion price on the conversion date.
An
automatic write-down or conversion event is typically triggered by a reduction in the capital
level of the issuer, but may also be triggered by regulatory actions (e.g., a change in capital
requirements) or by other factors. In addition, interest or dividend payments may be reduced or eliminated if certain earnings or capital
levels are breached.
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| Trust Preferred Securities Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Trust
Preferred Securities Risk. Some preferred securities are issued by trusts or other special
purpose entities established by operating companies and are not a direct obligation of an operating company. In some cases, when investing
in hybrid-preferred securities issued by trusts or other special purpose entities, the Fund may not have recourse against the operating
company in the event that the trust or other special purpose entity cannot pay the obligation and therefore, the Fund
may lose some or all of the value of its investments in the hybrid-preferred security.
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| Concentration Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Concentration
Risk. The Fund invests 25% or more of its total
assets in the financials sector. This policy makes the Fund more susceptible to adverse economic
or regulatory occurrences affecting the financials sector.
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| Financials Sector Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Financials
Sector Risk. The financials sector is especially subject to the adverse effects
of economic recession, currency exchange rates, government regulation, decreases in the availability of capital, volatile interest rates,
portfolio concentrations in geographic markets and in commercial and residential real estate
loans, and competition from new entrants in their fields of business.
U.S.
and foreign laws and regulations require banks and bank holding companies to maintain minimum levels of capital
and liquidity and to establish loan loss reserves. A bank’s failure to maintain specified
capital ratios may trigger dividend restrictions, suspensions on payments on subordinated debt, preferred securities and contingent capital
securities, and limitations on growth. Bank regulators have broad authority in these instances and can ultimately impose sanctions, such
as imposing resolution authority, conservatorship or receivership, on such non-complying banks even when these banks continue to be solvent,
thereby possibly resulting in the elimination of stockholders’ equity. Unless a bank holding company has subsidiaries other than
banks that generate substantial revenues, the holding company’s cash flow and ability to declare dividends may be impaired severely
by restrictions on the ability of its bank subsidiaries to declare dividends or ultimately to redeem its securities (as they mature).
Similarly,
U.S. and foreign laws and regulations require insurance companies to maintain minimum levels of capital and liquidity. An insurance company’s
failure to maintain these capital ratios may also trigger dividend restrictions, suspensions on
payments of subordinated debt, and limitations on growth. Insurance regulators (at the state-level
in the United States) have broad authority in these instances and can ultimately impose sanctions, including conservatorship or receivership,
on such non-complying insurance companies even when these companies continue to be solvent,
thereby possibly resulting in the elimination of shareholders’ equity. In addition, insurance regulators have extensive authority
in some categories of insurance of approving premium levels and setting required levels of underwriting.
Companies
engaged in stock brokerage, commodity brokerage, investment banking, investment management or related investment advisory services are
closely tied economically to the securities and commodities markets and can suffer during a
decline in either market. These companies also are subject to the regulatory environment and
changes in regulations, pricing pressure, the availability of funds to borrow and interest rates.
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| Credit Risks [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Credit
Risk. Credit risk is the risk that an issuer of a security will be unable or unwilling to
make dividend, interest and principal payments when due and the related risk that the value
of a security may decline because of concerns about the issuer’s ability to make such payments. Credit risk may be heightened for
the Fund because the Fund may invest in “high yield” or “high risk” securities; such securities, while generally
offering higher yields than investment grade securities with similar maturities, involve greater risks, including the possibility of default
or bankruptcy, and are regarded as predominantly speculative with respect to the issuer’s capacity to pay dividends and interest
and repay principal.
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| High Yield Securities Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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High
Yield Securities Risk. Although high yield securities generally pay higher rates of interest
than investment grade securities, high yield securities are high-risk investments that may cause income and principal
losses for the Fund. High yield securities may be issued by less creditworthy issuers. Issuers of high yield securities may have a larger
amount of outstanding debt relative to their assets than issuers of investment grade securities. In the event of an issuer’s bankruptcy,
claims of other creditors may have priority over the claims of high yield bond holders, for
example, leaving few or no assets available to repay high yield bond holders. Prices of high yield securities are subject to
extreme
price fluctuations. Adverse changes in an issuer’s industry and general economic conditions may have a greater
impact on the prices of high yield securities than on other higher rated fixed-income securities.
Issuers of high yield securities may be unable to meet their interest or principal payment obligations because of an economic downturn,
specific issuer developments, or the unavailability of additional financing. High yield securities frequently have redemption features
that permit an issuer to repurchase the security from the Fund before it matures. If the issuer redeems high
yield securities, the Fund may have to invest the proceeds in securities with lower yields and
may lose income. High yield securities may be less liquid than higher rated fixed-income securities, even under normal economic conditions.
There may be significant differences in the prices quoted for high yield securities by dealers in the market. Because they are less liquid,
judgment may play a greater role in valuing certain of the Fund’s securities than is the case
with securities trading in a more liquid market. The Fund may incur expenses to the extent necessary
to seek recovery upon default or to negotiate new terms with a defaulting issuer. The credit rating of a high yield security does not
necessarily address its market value risk. Ratings and market value may change from time to time, positively or negatively, to reflect
new developments regarding the issuer.
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| Credit Agency Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Credit
Agency Risk. Credit ratings are determined by credit rating agencies and are the opinions
of such entities. A rating assigned by a rating agency is not an absolute standard of credit quality and does not evaluate a security’s
market risk or liquidity. Any shortcomings or inefficiencies in credit rating agencies’ processes for determining credit ratings
may adversely affect the credit ratings of securities held by the Fund and, as a result, may adversely affect those securities’
perceived or actual credit risk.
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| Interest Rate And Duration Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Interest
Rate and Duration Risk. Interest rate risk is the risk that securities will decline in value
because of changes in market interest rates. For fixed rate securities, when market interest rates rise, the market value of such securities
generally will fall. Investments in fixed rate securities with long-term maturities may experience significant price declines
if long-term interest rates increase. During periods of rising interest rates, the average life
of certain types of securities may be extended because of slower than expected redemptions or
prepayments. This may lock in a below- market yield, increase the security’s sensitivity
to changes in interest rates (“duration”) and further reduce the value of the security. Fixed rate securities with longer
durations tend to be more volatile than securities with shorter durations. The duration of a security
will be expected to change over time with changes in market factors and time to maturity.
The
market value of floating-rate and fixed-to-floating rate securities may fall in a declining
interest rate environment and may also fall in a rising interest rate environment
if there is a lag between the rise in interest rates and the interest rate reset. A secondary
risk associated with declining interest rates is the risk that income earned by the Fund on floating-rate and fixed-to-floating rate securities
may decline due to lower coupon payments on floating-rate securities.
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| Liquidity Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Liquidity
Risk. The Fund may invest, without limit, in illiquid securities. From
time to time, certain securities held by the Fund may have limited marketability and may be
difficult to sell at favorable times or prices. It is possible that certain securities held
by the Fund will not be able to be sold in sufficient
amounts or in a sufficiently timely manner to raise the cash necessary to meet the Fund’s obligations, including potential repayment
of leverage borrowings, if any.
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| Foreign Investment Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Foreign
Investment Risk. Because the Fund may invest its assets in foreign instruments, the value
of Fund shares can be adversely affected by political and economic developments abroad. Foreign markets may be smaller, less liquid and
more volatile than the major markets in the United States, and as a result, Fund share values may be more volatile. Trading in foreign
markets typically involves higher expense than trading in the United States. The Fund may have
difficulties enforcing its legal or contractual rights in a foreign country. Foreign legal systems
generally have
fewer
regulatory requirements than the U.S. legal system, particularly those of emerging markets. In general, less information is publicly available
with respect to non-U.S. companies than U.S. companies. Non-U.S. companies generally are not subject to the same accounting, auditing,
and financial reporting standards as are U.S. companies.
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| Reinvestment Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Reinvestment
Risk. Reinvestment risk is the risk that income from the Fund’s portfolio will decline
if the Fund invests proceeds from matured, traded or redeemed securities at market interest rates that are below the Fund portfolio’s
current earnings rate. For example, during periods of declining interest rates, the issuer of
a security may exercise its option to redeem a security, causing the Fund to reinvest the proceeds
into lower-yielding securities, which may result in a decline in the Fund’s income and distributions to Common Shareholders.
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| Selection Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Selection
Risk. Selection risk is the risk that the securities selected by Fund management will under-perform
the markets, the relevant indices or the securities selected by other funds with similar investment objectives and investment strategies.
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| Management Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Management
Risk. The Fund is an actively managed portfolio and its success depends upon the investment
skills and analytical abilities of the Adviser to develop and effectively implement strategies that achieve the Fund’s investment
objective. Decisions made by the Adviser may cause the Fund to incur losses or to miss profit opportunities.
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| Leverage Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Leverage
Risk. Leverage is a
speculative technique and there are special risks and costs associated with leveraging. There is no assurance that leveraging strategy
will be successful. Leverage involves risks and special considerations for holders of Common Shares, including: the likelihood of greater
volatility of net asset value, market price and dividend rate of the Common Shares than a comparable portfolio without leverage; the risk
that fluctuations in the interest or dividend rates that the Fund must pay on any leverage will
reduce the return on the holders of the Common Shares; the effect of leverage in a declining
market, which is likely to cause a greater decline in the net asset value of the Common Shares than if the Fund were not leveraged,
which may result in a greater decline in the market price of the Common Shares; when the Fund
uses financial leverage, the management fees payable to the Adviser will be higher than if the Fund did not use leverage;
and leverage may increase operating costs, which may reduce total return.
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| Risk Of Market Price Discount From Net Asset Value [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Risk
of Market Price Discount from Net Asset Value.
Shares of closed-end funds frequently trade at a discount from their net asset value. This characteristic
is a risk separate and distinct from the risk that net asset value could decrease as a result of investment activities. We cannot predict
whether the Common Shares will trade at, above or below net asset value.
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| Valuation Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Valuation
Risk. Unlike publicly traded common stock that trades on national
exchanges, there is no central place or exchange for trading some of the preferred and other income securities owned by the Fund. Preferred,
contingent capital and debt securities generally trade on an OTC market which may be anywhere in the world where the buyer and seller
can settle on a price. Due to the lack of centralized information and trading, the valuation
of these securities may carry more risk than that of common stock. Uncertainties in the conditions of the financial market, unreliable
reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing.
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| Reference Rate Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Reference
Rate Risk. The Fund may be exposed to debt securities, derivatives or other financial instruments
that recently transitioned or will transition in the future from the London Interbank Offered Rate, or “LIBOR,” as a “benchmark”
or “reference rate” for various interest rate calculations. LIBOR’s administrator, ICE Benchmark Administration, ceased
publishing most LIBOR settings (including some U.S. LIBOR settings) by the end of 2021 and
the
remaining (and most widely used) U.S. Dollar LIBOR settings after June 30, 2023. The United Kingdom Financial Conduct Authority, which
regulates LIBOR, will permit the use of synthetic U.S. dollar LIBOR rates for non-U.S. contracts through September 30, 2024, but any such
rates would be considered non-representative of the underlying market. Since 2018 the Federal Reserve Bank of New York has published the
Secured Overnight Financing Rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the
cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market. There is no assurance
that the composition or characteristics of SOFR or any such alternative reference rate will be similar to or produce the same value or
economic equivalence as LIBOR or that the market for SOFR-linked financial instruments will have the same volume or liquidity as did the
market for LIBOR-linked financial instruments prior to LIBOR’s discontinuance or unavailability. Neither the long-term effect of
the LIBOR transition process nor its ultimate success can yet be known.
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| Cybersecurity Risk [Member] |
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| General Description of Registrant [Abstract] |
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| Risk [Text Block] |
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Cybersecurity
Risk. Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized
party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause
the Fund, the Adviser, and/or their service providers (including, but not limited to,
fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or
loss of operational functionality or prevent fund investors from purchasing, redeeming or exchanging shares or receiving distributions.
The Fund and the Adviser have limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers,
and such third-party service providers may have limited indemnification obligations to the Fund or the Adviser. Cybersecurity incidents
may result in financial losses to the Fund and its shareholders, and substantial costs may be
incurred in order to prevent any future cybersecurity incidents. Issuers of securities in which
the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity
incidents.
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| Debt Outstanding [Member] |
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| Financial Highlights [Abstract] |
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| Senior Securities Amount |
[1] |
$ 276,300
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[2] |
$ 276,300
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[2] |
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$ 276,300
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$ 276,300
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$ 276,300
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$ 252,200
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$ 252,200
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$ 252,200
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$ 252,200
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$ 241,300
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$ 241,300
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$ 235,500
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| Senior Securities Coverage per Unit |
[3] |
$ 2,574
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[2] |
$ 2,574
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[2] |
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$ 2,464
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$ 2,551
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$ 2,953
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$ 3,017
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$ 2,991
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$ 2,749
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$ 2,997
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$ 2,916
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$ 2,939
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$ 3,018
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| Common Shares [Member] |
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| General Description of Registrant [Abstract] |
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| Share Price |
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18.66
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18.66
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$ 18.05
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$ 19.17
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$ 18.80
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$ 18.88
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$ 17.75
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| NAV Per Share |
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$ 21.18
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$ 21.18
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$ 20.70
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$ 21.17
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$ 20.89
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$ 20.84
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$ 20.44
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| Capital Stock, Long-Term Debt, and Other Securities [Abstract] |
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| Capital Stock [Table Text Block] |
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5.Common
Stock
At
May 31, 2024, 240,000,000
shares of $0.01 par value Common Stock were authorized.
During
the six-month period ending May 31, 2024, the Fund had an effective “shelf” registration statement that allowed it to issue
shares of Common Stock periodically pursuant to Rule 415 under the Securities Act of 1933 (the “Shelf Registration Statement”).
The Shelf Registration Statement permitted the Fund to offer and sell Common Stock having an aggregate offering value of up to $200,000,000.
Under the 1940 Act, the Fund generally may not sell Common Stock at a price below the current net asset value of such Common Stock, net
of any distributing commission or discount. Accordingly, the Fund may be unable to issue Common Stock from time to time, particularly
when the shares of Common Stock are trading at a discount to their net asset value. The Fund is not required to issue Common Stock pursuant
to a Shelf Registration Statement and may choose not to do so.
The
Fund entered into an at-the-market sales agreement (the “Sales Agreement”) with Virtu Americas LLC (“Virtu”) under
which Virtu acted as the Fund’s agent or principal for the offer and sale of the Common Stock. Virtu was entitled to compensation
at a commission rate of up to 1.0% of the gross sales price per share sold under the Sales Agreement.
The
Shelf Registration Statement expired during the six-month period ending May 31, 2024. The aggregate dollar amount of Common Stock remaining
under the Shelf Registration Statement upon expiration was $164,287,124.
There
were no common stock transactions in the six-month period ending May 31, 2024, and in the fiscal year ending November 30, 2023.
Costs
incurred by the Fund in connection with the Shelf Registration Statement are recorded as a prepaid expense and included in “Prepaid
expenses” on the Statement of Assets and Liabilities. These costs are amortized pro rata as Common Stock is sold and are recognized
and presented net as a component of “Increase from shares issued under the at-the-market program” on the Statements of Changes
in Net Assets Available to Common Stock. Any deferred offering costs remaining three years after effective date of the Shelf Registration
will be expensed. Costs incurred by the Fund to keep the Shelf Registration current are expensed as incurred and recognized as a component
of “Expenses: Other” on the Statement of Operations.
During
the six-month period ending May 31, 2024, the Fund expensed $213,420 of Prepaid expenses related to the expired Shelf Registration Statement.
This is reported as “Offering costs expense” on the Statement of Operations. The Fund also recorded $16,063 of “Prepaid
expenses” related to a new Shelf Registration Statement. This is reported in “Prepaid expenses” on the Statement of
Assets and Liabilities.” There is no assurance that an effective Shelf Registration Statement will be filed by the Fund or that
shares will be issued under it. Costs related to it will be recorded as described in the preceding paragraph.
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| Outstanding Security, Authorized [Shares] |
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240,000,000
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| Outstanding Security, Held [Shares] |
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20,538,137
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| Preferred Shares [Member] |
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| Capital Stock, Long-Term Debt, and Other Securities [Abstract] |
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| Capital Stock [Table Text Block] |
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6.Preferred
Stock
The
Fund’s Articles of Incorporation authorize the issuance of up to 10,000,000 shares of $0.01 par value preferred stock. The Fund
does not currently have any issued and outstanding shares of preferred stock.
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| Outstanding Security, Authorized [Shares] |
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10,000,000
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