Insight Select Income Fund Announces Voting Results of Special Meeting of Shareholders
24 Novembre 2020 - 11:27PM
Business Wire
Insight Select Income Fund (NYSE: INSI) (the “Fund”) today
announced the results of the Fund’s Special Meeting of Shareholders
held on November 5, 2020, and adjourned until November 24,
2020.
Results of the Special Meeting of Shareholders
At the meeting, shareholders approved all of the proposals
presented including (i) an amendment to the investment advisory
agreement with Insight North America LLC (the “Adviser”) to
compensate the Adviser based on managed assets; (ii) revisions to
the Fund’s fundamental investment policy relating to borrowing
money to permit the Fund to borrow up to the limits of the
Investment Company Act of 1940; (iii) and the revision or
elimination of the Fund’s other fundamental policies as set forth
in the proxy statement sent to shareholder of record on September
10, 2020. Accordingly, pursuant to the Fund’s amended fundamental
investment policies, the Fund will not:
- Borrow money, except to the extent permitted under the 1940
Act, as such may be interpreted or modified by regulatory
authorities having jurisdiction, from time to time.
- Issue senior securities, except to the extent permitted under
the 1940 Act, as such may be interpreted or modified by regulatory
authorities having jurisdiction, from time to time.
- Act as an underwriter of securities within the meaning of the
Securities Act of 1933, as amended, except to the extent permitted
under the 1940 Act, as such may be interpreted or modified by
regulatory authorities having jurisdiction, from time to time.
- “Concentrate” its investments in an industry, except to the
extent permitted under the 1940 Act, as such may be interpreted or
modified by regulatory authorities having jurisdiction, from time
to time.
- Purchase or sell real estate, except to the extent permitted
under the 1940 Act, as such may be interpreted or modified by
regulatory authorities having jurisdiction, from time to time.
- Purchase or sell commodities, except to the extent permitted
under the 1940 Act, as such may be interpreted or modified by
regulatory authorities having jurisdiction, from time to time.
- Make loans to other persons, except to the extent permitted
under the 1940 Act, as such may be interpreted or modified by
regulatory authorities having jurisdiction, from time to time.
Change in Investment Strategy with respect to
Leverage
With the changes to the Fund’s fundamental investment policies
approved by the Fund’s shareholders, the Fund may use leverage to
the extent permitted by the 1940 Act. The Fund is permitted to
obtain leverage using any form or combination of financial leverage
instruments, including through funds borrowed from banks or other
financial institutions (i.e., a credit facility), margin
facilities, the issuance of preferred shares or notes and leverage
generated by certain other transactions. As disclosed in the Proxy
Statement, the Adviser has proposed establishing a credit facility
secured by the Fund’s assets from which the Fund could borrow money
to be invested pursuant to the Fund’s existing investment strategy.
The Fund may use leverage opportunistically and may use different
types, combinations or amounts of leverage over time, based on the
Adviser’s views concerning market conditions and investment
opportunities. Since the investment advisory fee is calculated
based on the Fund’s managed assets (i.e., total assets of the Fund,
less its liabilities other than Fund liabilities incurred for
investment purposes), any leverage employed by the Fund will result
in an increase in the investment advisory fee payable to the
Adviser.
Leverage will magnify investment, market and certain other
risks. Leverage involves risks including: the likelihood of greater
volatility of net asset value and market price of the shares than a
comparable portfolio without leverage; the risk that fluctuations
in interest rates on borrowings and short-term debt or senior
securities that the Fund may pay will reduce the return to common
shares or will result in fluctuations in the dividends paid on 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; and
when the Fund uses leverage, the investment advisory fee payable by
the Fund to the Adviser will be higher than if the Fund did not use
leverage. Leverage increases a fund’s losses when the value of its
investments declines. For example, leverage would have amplified
the volatility of the Fund’s returns during the market volatility
caused by the recent onset of the COVID-19 pandemic.
The Fund’s strategies relating to its use of leverage may not be
successful, and the Fund’s use of leverage will cause the Fund’s
NAV to be more volatile than it would otherwise be. There can be no
guarantee that the Fund will leverage its assets or, to the extent
the Fund does utilize leverage, what percentage of its assets such
leverage will represent.
The Fund is a diversified closed-end management investment
company whose investment objective is to seek a high rate of
return, primarily from interest income and trading activity, from a
portfolio principally consisting of debt securities. The Fund will
also seek capital appreciation principally by purchasing debt
securities at prices that the Adviser believes are below their
intrinsic value. The Fund will also look to benefit from trading
securities to optimize the risk adjusted yields in the Fund.
Insight North America LLC, the Fund’s investment adviser, provides
fixed income asset management to a variety of institutional clients
including corporations, governmental entities, employee benefit
plans, private funds and registered investment companies.
An investor should consider a Fund’s investment objectives,
risks, charges and expenses carefully before investing.
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version on businesswire.com: https://www.businesswire.com/news/home/20201124006028/en/
Vested Eric Hazard 917-765-8720 insight@fullyvested.com
Insight Select Income (NYSE:INSI)
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