PRESIDENT'S LETTER
|
1
|
PORTFOLIO COMMENTARY
|
2
|
SCHEDULE OF INVESTMENTS
|
7
|
FINANCIAL STATEMENTS
|
19
|
FINANCIAL HIGHLIGHTS/PER SHARE DATA
|
31
|
Report of Independent Registered Public Accounting Firm
|
33
|
Distribution Reinvestment Plan
|
34
|
Directory
|
36
|
Directors and Officers
|
37
|
Proxy Voting Policies and Procedures
|
46
|
Quarterly Portfolio Schedule
|
46
|
Recent Market Conditions
|
46
|
Report of Votes of Shareholders
|
48
|
Board Consideration of the Management and Sub-Advisory Agreements
|
49
|
High Yield
Strategies Fund
|
NHS
|
(as a % of Total Investments)
|
|||||
Less than One Year
|
0.3
|
%
|
|||
One to less than Five Years
|
22.9
|
||||
Five to less than Ten Years
|
70.6
|
||||
Ten Years or Greater
|
6.2
|
||||
Total
|
100.0
|
%
|
Inception
|
Average Annual Total Return
Ended 10/31/2012
|
||||||||||||||||||||
Date
|
1 Year
|
5 Years
|
Life of
Fund
|
||||||||||||||||||
At NAV2
|
07/28/2003
|
17.24
|
%
|
11.74
|
%
|
11.26
|
%
|
||||||||||||||
At Market Price3
|
07/28/2003
|
13.68
|
%
|
14.01
|
%
|
10.83
|
%
|
||||||||||||||
Index
|
|||||||||||||||||||||
BofA Merrill
Lynch
U.S. High
Yield
Master II
Constrained
Index4
|
13.15
|
%
|
9.28
|
%
|
9.02
|
%
|
BofA Merrill
Lynch U.S. High
Yield
Master II
Constrained
Index:
|
An unmanaged market value-weighted index of all domestic and Yankee high yield bonds, including deferred interest bonds and payment-in-kind securities. Qualifying bonds must have at least one year remaining to maturity, a fixed coupon schedule and a minimum amount outstanding of $100 million. Qualifying bonds are capitalization weighted provided the total allocation to an individual issuer does not exceed 2%.
|
PRINCIPAL AMOUNT
|
VALUE†
|
||||||||
Bank Loan Obligationsµ (10.6%)
|
|||||||||
Automotive (1.3%)
|
|||||||||
$
|
2,977,932
|
Chrysler Automotive, Term Loan B, 6.00%, due 5/24/17
|
$
|
3,039,545
|
|||||
625,000
|
Navistar International, Term Loan B, 7.00%, due 8/15/17
|
626,563
|
¢^^
|
||||||
3,666,108
|
|||||||||
Building & Development (1.0%)
|
|||||||||
2,745,000
|
Realogy Corporation, Term Loan, 4.46%, due 10/10/16
|
2,737,643
|
|||||||
Business Equipment & Services (0.7%)
|
|||||||||
1,105,000
|
Ceridian Corp., Term Loan, 5.96%, due 5/9/17
|
1,100,856
|
|||||||
905,101
|
Monitronics, Term Loan, 5.50%, due 3/23/18
|
909,627
|
|||||||
2,010,483
|
|||||||||
Ecological Services & Equipment (0.4%)
|
|||||||||
980,000
|
ADS Waste Holdings, Inc., Term Loan B, 5.25%, due 9/28/19
|
988,820
|
¢^^
|
||||||
Electronics—Electrical (0.3%)
|
|||||||||
770,122
|
Sophia LP, Term Loan, 6.25%, due 7/19/18
|
778,978
|
|||||||
Financial Intermediaries (1.1%)
|
|||||||||
777,007
|
First Data Corporation, Term Loan, 5.21%, due 3/24/17
|
763,410
|
|||||||
2,148,000
|
Springleaf, Term Loan, 5.50%, due 5/10/17
|
2,117,391
|
|||||||
2,880,801
|
|||||||||
Health Care (1.3%)
|
|||||||||
1,099,380
|
EMS, Term Loan, 5.25%, due 5/25/18
|
1,107,031
|
|||||||
1,270,400
|
Pharmaceutical Product Development, Inc., Term Loan, 6.25%, due 12/5/18
|
1,286,598
|
|||||||
1,269,810
|
United Surgical Partners, Term Loan B, 6.00%, due 4/3/19
|
1,280,387
|
|||||||
3,674,016
|
|||||||||
Lodging & Casinos (2.9%)
|
|||||||||
4,290,774
|
Ceasers Entertainment Operating Co., Term Loan B5, 4.46%, due 1/28/18
|
3,706,628
|
¢^^
|
||||||
2,849,000
|
Graton Resort & Casino, Term Loan B, 9.00%, due 8/3/18
|
2,908,345
|
|||||||
1,496,823
|
Station Casinos, Term Loan B-2, 4.21%, due 6/17/16
|
1,427,595
|
|||||||
8,042,568
|
|||||||||
Nonferrous Metals—Minerals (0.3%)
|
|||||||||
753,113
|
Arch Coal, Term Loan, 5.75%, due 5/16/18
|
759,032
|
|||||||
Oil & Gas (0.4%)
|
|||||||||
1,104,408
|
Chesapeake Energy, Term Loan B, 8.50%, due 12/2/17
|
1,105,468
|
|||||||
Publishing (0.3%)
|
|||||||||
1,041,400
|
Cengage Learning, Term Loan B1, 5.72%, due 7/31/17
|
944,633
|
|||||||
Radio & Television (0.2%)
|
555,000
|
Clear Channel, Term Loan A, 3.61%, due 7/30/14
|
537,357
|
PRINCIPAL AMOUNT
|
VALUE†
|
||||||||
Retailers (Except Food & Drug) (0.4%)
|
|||||||||
$
|
959,000
|
Amscan Holdings, Inc., Term Loan, 5.75%, due 7/27/19
|
$
|
967,151
|
|||||
Total Bank Loan Obligations (Cost $28,553,735)
|
29,093,058
|
||||||||
Corporate Debt Securities (125.9%)
|
|||||||||
Airlines (1.2%)
|
|||||||||
1,085,000
|
Continental Airlines, Inc., Senior Secured Notes, 6.75%, due 9/15/15
|
1,135,181
|
ñ
|
||||||
1,271,000
|
United Airlines, Inc., Senior Secured Notes, 9.88%, due 8/1/13
|
1,296,420
|
ñ
|
||||||
765,439
|
United Airlines, Inc., Pass-Through Certificates, Ser. 2009-2, Class A, 9.75%, due 1/15/17
|
885,996
|
|||||||
3,317,597
|
|||||||||
Automakers (0.9%)
|
|||||||||
945,000
|
Ford Holdings, Inc., Guaranteed Notes, 9.30%, due 3/1/30
|
1,326,543
|
|||||||
845,000
|
Ford Motor Co., Senior Unsecured Notes, 9.98%, due 2/15/47
|
1,173,494
|
|||||||
2,500,037
|
|||||||||
Banking (3.4%)
|
|||||||||
2,470,000
|
Ally Financial, Inc., Guaranteed Notes, 6.25%, due 12/1/17
|
2,712,662
|
|||||||
185,000
|
Ally Financial, Inc., Subordinated Notes, 8.00%, due 12/31/18
|
208,819
|
|||||||
4,080,000
|
Ally Financial, Inc., Guaranteed Notes, 8.00%, due 3/15/20
|
4,865,808
|
|||||||
820,000
|
Ally Financial, Inc., Guaranteed Notes, 7.50%, due 9/15/20
|
966,575
|
|||||||
486,000
|
Ally Financial, Inc., Guaranteed Notes, 8.00%, due 11/1/31
|
578,340
|
|||||||
9,332,204
|
|||||||||
Building & Construction (0.8%)
|
|||||||||
650,000
|
Beazer Homes USA, Inc., Guaranteed Notes, 9.13%, due 5/15/19
|
682,500
|
|||||||
965,000
|
D.R. Horton, Inc., Guaranteed Notes, 4.38%, due 9/15/22
|
967,413
|
|||||||
490,000
|
Standard Pacific Corp., Guaranteed Notes, 8.38%, due 1/15/21
|
568,400
|
|||||||
2,218,313
|
|||||||||
Building Materials (2.1%)
|
|||||||||
905,000
|
Masco Corp., Senior Unsecured Notes, 6.13%, due 10/3/16
|
990,579
|
|||||||
310,000
|
Ply Gem Industries, Inc., Senior Secured Notes, 8.25%, due 2/15/18
|
330,925
|
|||||||
1,990,000
|
USG Corp., Senior Unsecured Notes, 9.75%, due 1/15/18
|
2,174,075
|
|||||||
2,050,000
|
USG Corp., Guaranteed Notes, 8.38%, due 10/15/18
|
2,234,500
|
ñ
|
||||||
5,730,079
|
|||||||||
Chemicals (4.7%)
|
|||||||||
485,000
|
Huntsman Int'l LLC, Guaranteed Notes, 8.63%, due 3/15/20
|
546,838
|
|||||||
1,530,000
|
Huntsman Int'l LLC, Guaranteed Notes, 8.63%, due 3/15/21
|
1,740,375
|
|||||||
725,000
|
LyondellBasell Industries NV, Senior Unsecured Notes, 6.00%, due 11/15/21
|
838,281
|
|||||||
3,935,000
|
Momentive Performance Materials, Inc., Senior Secured Notes, 10.00%, due 10/15/20
|
3,777,600
|
ñ
|
||||||
4,640,000
|
Momentive Performance Materials, Inc., Secured Notes, 9.00%, due 1/15/21
|
3,201,600
|
|||||||
2,835,000
|
MPM Escrow LLC/MPM Finance Escrow Corp., Senior Secured Notes, 8.88%, due 10/15/20
|
2,778,300
|
ñ
|
||||||
12,882,994
|
Computer Hardware (0.6%)
|
|||||||||
1,505,000
|
Seagate HDD Cayman, Guaranteed Notes, 7.00%, due 11/1/21
|
1,572,725
|
PRINCIPAL AMOUNT
|
VALUE†
|
||||||||
Consumer—Commercial Lease Financing (4.3%)
|
|||||||||
$
|
1,915,000
|
CIT Group, Inc., Senior Unsecured Notes, 6.63%, due 4/1/18
|
$
|
2,135,225
|
ñ
|
||||
3,160,000
|
CIT Group, Inc., Senior Unsecured Notes, 5.50%, due 2/15/19
|
3,369,350
|
ñ
|
||||||
2,340,000
|
Int'l Lease Finance Corp., Senior Unsecured Notes, 8.75%, due 3/15/17
|
2,732,301
|
|||||||
1,240,000
|
Int'l Lease Finance Corp., Senior Unsecured Notes, 8.88%, due 9/1/17
|
1,460,100
|
|||||||
1,965,000
|
Int'l Lease Finance Corp., Senior Unsecured Notes, 6.25%, due 5/15/19
|
2,117,781
|
|||||||
11,814,757
|
|||||||||
Consumer Products (0.1%)
|
|||||||||
365,000
|
Alphabet Holding Co., Inc., Senior Unsecured Notes, 7.75%, due 11/1/17
|
368,194
|
ñc
|
||||||
Department Stores (2.4%)
|
|||||||||
7,069,000
|
Sears Holdings Corp., Secured Notes, 6.63%, due 10/15/18
|
6,609,515
|
|||||||
Electric—Generation (2.9%)
|
|||||||||
572,000
|
Calpine Corp., Senior Secured Notes, 7.25%, due 10/15/17
|
606,320
|
ñØØ
|
||||||
670,000
|
Calpine Corp., Senior Secured Notes, 7.88%, due 7/31/20
|
733,650
|
ñØØ
|
||||||
565,000
|
NRG Energy, Inc., Guaranteed Notes, 7.63%, due 1/15/18
|
617,263
|
|||||||
2,045,000
|
NRG Energy, Inc., Guaranteed Notes, 8.25%, due 9/1/20
|
2,254,612
|
|||||||
3,315,000
|
NRG Energy, Inc., Guaranteed Notes, 7.88%, due 5/15/21
|
3,629,925
|
ØØ
|
||||||
7,841,770
|
|||||||||
Electric—Integrated (0.7%)
|
|||||||||
1,735,000
|
IPALCO Enterprises, Inc., Senior Secured Notes, 7.25%, due 4/1/16
|
1,932,358
|
ñ
|
||||||
Electronics (3.1%)
|
|||||||||
1,775,000
|
Ceridian Corp., Guaranteed Notes, 11.25%, due 11/15/15
|
1,730,625
|
|||||||
4,510,125
|
Ceridian Corp., Guaranteed Notes, 12.25%, due 11/15/15
|
4,431,198
|
c
|
||||||
1,230,000
|
Ceridian Corp., Senior Secured Notes, 8.88%, due 7/15/19
|
1,303,800
|
ñ
|
||||||
935,000
|
Freescale Semiconductor, Inc., Senior Secured Notes, 9.25%, due 4/15/18
|
1,000,450
|
ñ
|
||||||
8,466,073
|
|||||||||
Energy—Exploration & Production (13.3%)
|
|||||||||
1,535,000
|
Chesapeake Energy Corp., Guaranteed Notes, 6.50%, due 8/15/17
|
1,629,019
|
|||||||
170,000
|
Chesapeake Energy Corp., Guaranteed Notes, 6.88%, due 8/15/18
|
178,500
|
|||||||
1,250,000
|
Chesapeake Energy Corp., Guaranteed Notes, 7.25%, due 12/15/18
|
1,331,250
|
|||||||
1,080,000
|
Chesapeake Energy Corp., Guaranteed Notes, 6.63%, due 8/15/20
|
1,134,000
|
|||||||
1,870,000
|
Chesapeake Energy Corp., Guaranteed Notes, 6.13%, due 2/15/21
|
1,893,375
|
|||||||
1,025,000
|
EP Energy LLC/Everest Acquisition Finance, Inc., Guaranteed Notes, 7.75%, due 9/1/22
|
1,060,875
|
ñ
|
||||||
4,107,000
|
Everest Acquisition LLC, Senior Unsecured Notes, 9.38%, due 5/1/20
|
4,538,235
|
ñ
|
||||||
3,895,000
|
EXCO Resources, Inc., Guaranteed Notes, 7.50%, due 9/15/18
|
3,661,300
|
ØØ
|
||||||
1,460,000
|
Forest Oil Corp., Guaranteed Notes, 7.50%, due 9/15/20
|
1,492,850
|
ñ
|
||||||
2,205,000
|
Linn Energy LLC, Guaranteed Notes, 6.25%, due 11/1/19
|
2,205,000
|
ñ
|
1,255,000
|
Linn Energy LLC, Guaranteed Notes, 8.63%, due 4/15/20
|
1,372,656
|
|||||||
2,190,000
|
Linn Energy LLC, Guaranteed Notes, 7.75%, due 2/1/21
|
2,337,825
|
|||||||
930,000
|
Plains Exploration & Production Co., Guaranteed Notes, 7.63%, due 6/1/18
|
985,800
|
|||||||
85,000
|
Plains Exploration & Production Co., Guaranteed Notes, 6.13%, due 6/15/19
|
84,788
|
|||||||
845,000
|
Plains Exploration & Production Co., Guaranteed Notes, 8.63%, due 10/15/19
|
931,612
|
|||||||
1,525,000
|
Plains Exploration & Production Co., Guaranteed Notes, 6.50%, due 11/15/20
|
1,525,000
|
|||||||
805,000
|
Plains Exploration & Production Co., Guaranteed Notes, 6.63%, due 5/1/21
|
805,000
|
|||||||
2,710,000
|
Plains Exploration & Production Co., Guaranteed Notes, 6.75%, due 2/1/22
|
2,723,550
|
|||||||
1,430,000
|
Plains Exploration & Production Co., Guaranteed Notes, 6.88%, due 2/15/23
|
1,428,212
|
|||||||
1,805,000
|
SandRidge Energy, Inc., Guaranteed Notes, 8.00%, due 6/1/18
|
1,895,250
|
ñ
|
||||||
645,000
|
SandRidge Energy, Inc., Guaranteed Notes, 7.50%, due 2/15/23
|
667,575
|
ñ
|
||||||
2,330,000
|
WPX Energy, Inc., Senior Unsecured Notes, 6.00%, due 1/15/22
|
2,493,100
|
|||||||
36,374,772
|
PRINCIPAL AMOUNT
|
VALUE†
|
||||||||
Food & Drug Retailers (1.1%)
|
|||||||||
$
|
675,000
|
Rite Aid Corp., Guaranteed Notes, 9.50%, due 6/15/17
|
$
|
693,562
|
|||||
560,000
|
Rite Aid Corp., Secured Notes, 10.25%, due 10/15/19
|
639,800
|
|||||||
1,442,000
|
Rite Aid Corp., Senior Secured Notes, 8.00%, due 8/15/20
|
1,656,858
|
|||||||
2,990,220
|
|||||||||
Gaming (7.0%)
|
|||||||||
1,155,000
|
Boyd Acquisition Sub LLC/Boyd Acquisition Finance Corp.,
Guaranteed Notes, 8.38%, due 2/15/18
|
1,180,987
|
ñ
|
||||||
465,000
|
Boyd Gaming Corp., Senior Subordinated Notes, 7.13%, due 2/1/16
|
454,538
|
|||||||
725,000
|
CityCenter Holdings LLC, Senior Secured Notes, 7.63%, due 1/15/16
|
773,938
|
|||||||
1,090,000
|
CityCenter Holdings LLC, Senior Secured Notes, 7.63%, due 1/15/16
|
1,160,850
|
ñ
|
||||||
250,271
|
CityCenter Holdings LLC, Secured Notes, 10.75%, due 1/15/17
|
264,662
|
c
|
||||||
3,085,000
|
Graton Economic Development Authority, Senior Secured Notes, 9.63%, due 9/1/19
|
3,281,669
|
ñ
|
||||||
975,000
|
MGM Mirage, Inc., Guaranteed Notes, 7.50%, due 6/1/16
|
1,033,500
|
|||||||
730,000
|
MGM Mirage, Inc., Senior Secured Notes, 9.00%, due 3/15/20
|
813,950
|
|||||||
1,775,000
|
MGM Resorts Int'l, Guaranteed Notes, 6.75%, due 10/1/20
|
1,761,687
|
ñ
|
||||||
3,655,000
|
MGM Resorts Int'l, Guaranteed Notes, 7.75%, due 3/15/22
|
3,778,356
|
ØØ
|
||||||
400,000
|
Mohegan Tribal Gaming Authority, Secured Notes, 10.50%, due 12/15/16
|
377,000
|
ñ
|
||||||
1,920,000
|
Mohegan Tribal Gaming Authority, Guaranteed Notes, 11.00%, due 9/15/18
|
1,423,200
|
ñ
|
||||||
890,979
|
Pinnacle Entertainment, Inc., Guaranteed Notes, 7.75%, due 4/1/22
|
964,485
|
|||||||
1,090,000
|
Seminole Indian Tribe of Florida, Notes, 7.75%, due 10/1/17
|
1,188,100
|
ñ
|
||||||
691,000
|
Wynn Las Vegas LLC, 1st Mortgage, 7.75%, due 8/15/20
|
775,647
|
|||||||
19,232,569
|
|||||||||
Gas Distribution (8.0%)
|
|||||||||
25,000
|
Access Midstream Partner L.P., Guaranteed Notes, 5.88%, due 4/15/21
|
26,000
|
|||||||
1,740,000
|
Access Midstream Partner L.P., Guaranteed Notes, 6.13%, due 7/15/22
|
1,840,050
|
|||||||
1,710,000
|
AmeriGas Finance LLC, Guaranteed Notes, 6.75%, due 5/20/20
|
1,838,250
|
|||||||
1,825,000
|
AmeriGas Finance LLC, Guaranteed Notes, 7.00%, due 5/20/22
|
1,982,406
|
|||||||
970,000
|
El Paso Corp., Senior Unsecured Notes, 7.00%, due 6/15/17
|
1,108,260
|
|||||||
225,000
|
El Paso Corp., Senior Unsecured Notes, 7.25%, due 6/1/18
|
259,797
|
|||||||
1,145,000
|
El Paso Corp., Senior Unsecured Global Medium-Term Notes, 7.75%, due 1/15/32
|
1,366,437
|
|||||||
1,315,000
|
El Paso Energy Corp., Senior Unsecured Global Medium-Term Notes, 7.80%, due 8/1/31
|
1,565,062
|
|||||||
2,700,000
|
Energy Transfer Equity L.P., Senior Secured Notes, 7.50%, due 10/15/20
|
3,071,250
|
ØØ
|
||||||
1,990,000
|
Ferrellgas L.P., Senior Unsecured Notes, 9.13%, due 10/1/17
|
2,129,300
|
|||||||
665,000
|
Kinder Morgan Finance Co., Guaranteed Notes, 5.70%, due 1/5/16
|
727,994
|
|||||||
2,505,000
|
MarkWest Energy Partners L.P., Guaranteed Notes, Ser. B, 8.75%, due 4/15/18
|
2,680,350
|
|||||||
1,360,000
|
Regency Energy Partners L.P., Guaranteed Notes, 6.88%, due 12/1/18
|
1,462,000
|
|||||||
958,000
|
Suburban Propane Partners L.P./Suburban Energy Finance Corp.,
Senior Unsecured Notes, 7.50%, due 10/1/18
|
1,029,850
|
ñ
|
||||||
662,000
|
Suburban Propane Partners L.P./Suburban Energy Finance Corp.,
Senior Unsecured Notes, 7.38%, due 8/1/21
|
708,340
|
ñ
|
21,795,346
|
|||||||||
Health Facilities (5.9%)
|
|||||||||
2,455,000
|
CHS/Community Health Systems, Inc., Senior Secured Notes, 5.13%, due 8/15/18
|
2,547,062
|
|||||||
695,000
|
Columbia Healthcare Corp., Senior Unsecured Notes, 7.50%, due 12/15/23
|
695,000
|
|||||||
4,000,000
|
Columbia/HCA Corp., Senior Unsecured Notes, 7.69%, due 6/15/25
|
4,040,000
|
|||||||
545,000
|
Columbia/HCA Corp., Senior Unsecured Notes, 7.05%, due 12/1/27
|
515,025
|
|||||||
630,000
|
DaVita, Inc., Guaranteed Notes, 5.75%, due 8/15/22
|
658,350
|
|||||||
230,000
|
HCA, Inc., Senior Secured Notes, 6.50%, due 2/15/20
|
254,150
|
|||||||
2,090,000
|
OMEGA Healthcare Investors, Inc., Guaranteed Notes, 6.75%, due 10/15/22
|
2,278,100
|
|||||||
2,225,000
|
Tenet Healthcare Corp., Senior Secured Notes, 8.88%, due 7/1/19
|
2,486,438
|
|||||||
1,890,000
|
United Surgical Partners Int'l, Inc., Guaranteed Notes, 9.00%, due 4/1/20
|
2,069,550
|
|||||||
470,000
|
Universal Health Services, Inc., Senior Secured Notes, 7.13%, due 6/30/16
|
532,275
|
|||||||
16,075,950
|
PRINCIPAL AMOUNT
|
VALUE†
|
||||||||
Hotels (0.3%)
|
|||||||||
$
|
670,000
|
Host Hotels & Resorts L.P., Unsubordinated Notes, Ser. W, 5.88%, due 6/15/19
|
$
|
737,000
|
|||||
180,000
|
Host Hotels & Resorts L.P., Senior Unsecured Notes, 6.00%, due 10/1/21
|
208,800
|
|||||||
945,800
|
|||||||||
Investments & Misc. Financial Services (2.3%)
|
|||||||||
3,680,000
|
Icahn Enterprises L.P., Guaranteed Notes, 7.75%, due 1/15/16
|
3,845,600
|
|||||||
980,000
|
Icahn Enterprises L.P., Guaranteed Notes, 8.00%, due 1/15/18
|
1,053,500
|
|||||||
1,310,000
|
Icahn Enterprises L.P., Guaranteed Notes, 8.00%, due 1/15/18
|
1,408,250
|
ñ
|
||||||
6,307,350
|
|||||||||
Leisure (0.5%)
|
|||||||||
1,155,000
|
Cedar Fair L.P., Guaranteed Notes, 9.13%, due 8/1/18
|
1,306,594
|
|||||||
Machinery (1.5%)
|
|||||||||
2,655,000
|
Case New Holland, Inc., Guaranteed Notes, 7.88%, due 12/1/17
|
3,119,625
|
|||||||
910,000
|
The Manitowoc Co., Inc., Guaranteed Notes, 8.50%, due 11/1/20
|
1,021,475
|
|||||||
4,141,100
|
|||||||||
Media—Broadcast (5.1%)
|
|||||||||
685,000
|
AMC Networks, Inc., Guaranteed Notes, 7.75%, due 7/15/21
|
775,763
|
|||||||
4,075,000
|
Clear Channel Communications, Inc., Senior Unsecured Notes, 5.50%, due 9/15/14
|
3,810,125
|
|||||||
1,100,000
|
Clear Channel Communications, Inc., Guaranteed Notes, 10.75%, due 8/1/16
|
814,000
|
|||||||
3,215,000
|
Cumulus Media Holdings, Inc., Guaranteed Notes, 7.75%, due 5/1/19
|
3,142,662
|
|||||||
1,330,000
|
Sirius XM Radio, Inc., Guaranteed Notes, 8.75%, due 4/1/15
|
1,509,550
|
ñ
|
||||||
1,080,000
|
Univision Communications, Inc., Senior Secured Notes, 6.88%, due 5/15/19
|
1,104,300
|
ñ
|
||||||
375,000
|
Univision Communications, Inc., Senior Secured Notes, 7.88%, due 11/1/20
|
397,500
|
ñ
|
||||||
1,160,000
|
Univision Communications, Inc., Guaranteed Notes, 8.50%, due 5/15/21
|
1,165,800
|
ñ
|
||||||
1,095,000
|
XM Satellite Radio, Inc., Guaranteed Notes, 7.63%, due 11/1/18
|
1,209,975
|
ñ
|
||||||
13,929,675
|
|||||||||
Media—Cable (5.6%)
|
|||||||||
210,000
|
CCO Holdings LLC, Guaranteed Notes, 7.88%, due 4/30/18
|
226,800
|
|||||||
70,000
|
CCO Holdings LLC, Guaranteed Notes, 7.00%, due 1/15/19
|
75,250
|
|||||||
1,040,000
|
CCO Holdings LLC, Guaranteed Notes, 8.13%, due 4/30/20
|
1,170,000
|
|||||||
270,000
|
Cequel Communications Escrow 1 LLC/Cequel Communications Escrow Capital Corp.,
Senior Unsecured Notes, 6.38%, due 9/15/20
|
273,375
|
ñ
|
||||||
2,020,000
|
Cequel Communications Holdings I LLC/Cequel Capital Corp.,
Senior Unsecured Notes, 8.63%, due 11/15/17
|
2,161,400
|
ñ
|
||||||
270,000
|
CSC Holdings LLC, Senior Unsecured Notes, 7.63%, due 7/15/18
|
312,525
|
|||||||
2,280,000
|
CSC Holdings LLC, Senior Unsecured Notes, 6.75%, due 11/15/21
|
2,536,500
|
ñ
|
||||||
485,000
|
DISH DBS Corp., Guaranteed Notes, 7.75%, due 5/31/15
|
545,625
|
|||||||
3,265,000
|
DISH DBS Corp., Guaranteed Notes, 6.75%, due 6/1/21
|
3,636,394
|
|||||||
3,605,000
|
DISH DBS Corp., Guaranteed Notes, 5.88%, due 7/15/22
|
3,785,250
|
|||||||
530,000
|
EchoStar DBS Corp., Guaranteed Notes, 7.13%, due 2/1/16
|
592,275
|
15,315,394
|
|||||||||
Media—Services (1.9%)
|
|||||||||
650,000
|
Clear Channel Worldwide Holdings, Inc., Guaranteed Notes, Ser. B, 9.25%, due 12/15/17
|
697,125
|
|||||||
450,000
|
Clear Channel Worldwide Holdings, Inc., Guaranteed Notes, Ser. B, 7.63%, due 3/15/20
|
428,625
|
|||||||
3,320,000
|
WMG Acquisition Corp., Senior Secured Notes, 9.50%, due 6/15/16
|
3,656,150
|
|||||||
135,000
|
WMG Acquisition Corp., Senior Secured Notes, 9.50%, due 6/15/16
|
148,331
|
|||||||
330,000
|
WMG Acquisition Corp., Senior Secured Notes, 6.00%, due 1/15/21
|
330,825
|
ñØ
|
||||||
5,261,056
|
PRINCIPAL AMOUNT
|
VALUE†
|
||||||||
Medical Products (1.4%)
|
|||||||||
$
|
970,000
|
Biomet, Inc., Guaranteed Notes, 6.50%, due 8/1/20
|
$
|
1,001,525
|
ñ
|
||||
410,000
|
Fresenius Medical Care US Finance II, Inc., Guaranteed Notes, 5.88%, due 1/31/22
|
436,137
|
ñ
|
||||||
1,520,000
|
Fresenius Medical Care US Finance, Inc., Guaranteed Notes, 6.50%, due 9/15/18
|
1,702,400
|
ñ
|
||||||
645,000
|
Hologic, Inc., Guaranteed Notes, 6.25%, due 8/1/20
|
683,700
|
ñ
|
||||||
3,823,762
|
|||||||||
Metals—Mining Excluding Steel (4.3%)
|
|||||||||
625,000
|
Arch Coal, Inc., Guaranteed Notes, 7.25%, due 10/1/20
|
553,125
|
|||||||
550,000
|
Arch Coal, Inc., Guaranteed Notes, 7.25%, due 6/15/21
|
485,375
|
|||||||
4,870,000
|
FMG Resources (August 2006) Pty Ltd., Guaranteed Notes, 7.00%, due 11/1/15
|
4,918,700
|
ñ
|
||||||
1,385,000
|
FMG Resources (August 2006) Pty Ltd., Senior Unsecured Notes, 6.00%, due 4/1/17
|
1,329,600
|
ñ
|
||||||
1,490,000
|
FMG Resources (August 2006) Pty Ltd., Guaranteed Notes, 8.25%, due 11/1/19
|
1,490,000
|
ñ
|
||||||
2,005,000
|
FMG Resources (August 2006) Pty Ltd., Senior Unsecured Notes, 6.88%, due 4/1/22
|
1,884,700
|
ñ
|
||||||
1,200,000
|
Peabody Energy Corp., Guaranteed Notes, 6.00%, due 11/15/18
|
1,245,000
|
|||||||
11,906,500
|
|||||||||
Packaging (6.9%)
|
|||||||||
2,300,000
|
Berry Plastics Corp., Secured Notes, 9.50%, due 5/15/18
|
2,501,250
|
ØØ
|
||||||
5,055,000
|
Berry Plastics Corp., Secured Notes, 9.75%, due 1/15/21
|
5,737,425
|
|||||||
1,040,000
|
Owens-Brockway Glass Container, Inc., Guaranteed Notes, 7.38%, due 5/15/16
|
1,190,800
|
|||||||
950,000
|
Reynolds Group Issuer, Inc, Guaranteed Notes, 8.50%, due 5/15/18
|
945,250
|
|||||||
1,970,000
|
Reynolds Group Issuer, Inc., Senior Secured Notes, 7.88%, due 8/15/19
|
2,137,450
|
|||||||
3,060,000
|
Reynolds Group Issuer, Inc., Guaranteed Notes, 9.88%, due 8/15/19
|
3,205,350
|
|||||||
2,205,000
|
Reynolds Group Issuer, Inc., Senior Secured Notes, 5.75%, due 10/15/20
|
2,227,050
|
ñ
|
||||||
905,000
|
Reynolds Group Issuer, Inc., Senior Secured Notes, 6.88%, due 2/15/21
|
961,562
|
|||||||
18,906,137
|
|||||||||
Pharmaceuticals (2.7%)
|
|||||||||
935,000
|
Endo Pharmaceuticals Holdings, Inc., Guaranteed Notes, 7.00%, due 7/15/19
|
1,009,800
|
|||||||
540,000
|
Jaguar Holding Co., Senior Notes, 9.38%, due 10/15/17
|
548,100
|
ñc
|
||||||
1,445,000
|
Jaguar Holding Co., Senior Unsecured Notes, 9.50%, due 12/1/19
|
1,614,787
|
ñ
|
||||||
630,000
|
Valeant Pharmaceuticals Int'l, Guaranteed Notes, 6.75%, due 10/1/17
|
675,675
|
ñ
|
||||||
365,000
|
Valeant Pharmaceuticals Int'l, Senior Notes, 6.38%, due 10/15/20
|
384,163
|
ñ
|
||||||
3,080,000
|
VPI Escrow Corp., Guaranteed Notes, 6.38%, due 10/15/20
|
3,241,700
|
ñ
|
||||||
7,474,225
|
|||||||||
Printing & Publishing (6.4%)
|
|||||||||
2,965,000
|
Cengage Learning Acquisitions, Inc., Senior Secured Notes, 11.50%, due 4/15/20
|
3,179,962
|
ñ
|
||||||
920,000
|
Gannett Co., Inc., Guaranteed Notes, 9.38%, due 11/15/17
|
1,023,500
|
|||||||
2,180,000
|
Gannett Co., Inc., Guaranteed Notes, 7.13%, due 9/1/18
|
2,378,925
|
|||||||
885,000
|
R. R. Donnelley & Sons Co., Senior Unsecured Notes, 8.60%, due 8/15/16
|
964,650
|
|||||||
R. R. Donnelley & Sons Co., Senior Unsecured Notes, 7.25%,
|
5,720,000
|
due 5/15/18
|
5,684,250
|
|||||||
2,755,000
|
R. R. Donnelley & Sons Co., Senior Unsecured Notes, 8.25%, due 3/15/19
|
2,837,650
|
|||||||
1,355,000
|
R. R. Donnelley & Sons Co., Senior Unsecured Notes, 7.63%, due 6/15/20
|
1,334,675
|
|||||||
17,403,612
|
|||||||||
Real Estate Dev. & Mgt. (0.4%)
|
|||||||||
1,005,000
|
Realogy Corp., Senior Secured Notes, 7.63%, due 1/15/20
|
1,128,113
|
ñ
|
PRINCIPAL AMOUNT
|
VALUE†
|
||||||||
Software—Services (4.1%)
|
|||||||||
$
|
820,000
|
Fidelity National Information Services, Inc., Guaranteed Notes, 7.88%, due 7/15/20
|
$
|
916,350
|
|||||
3,435,000
|
First Data Corp., Guaranteed Notes, 11.25%, due 3/31/16
|
3,357,712
|
ØØ
|
||||||
1,055,000
|
First Data Corp., Senior Secured Notes, 7.38%, due 6/15/19
|
1,091,925
|
ñ
|
||||||
1,405,000
|
First Data Corp., Senior Secured Notes, 6.75%, due 11/1/20
|
1,405,000
|
ñ
|
||||||
1,420,000
|
Sophia, L.P., Guaranteed Notes, 9.75%, due 1/15/19
|
1,517,625
|
ñ
|
||||||
1,810,000
|
SunGard Data Systems, Inc., Guaranteed Notes, 6.63%, due 11/1/19
|
1,825,838
|
ñØ
|
||||||
515,000
|
SunGard Data Systems, Inc., Guaranteed Notes, 7.63%, due 11/15/20
|
559,419
|
|||||||
505,000
|
Syniverse Holdings, Inc., Guaranteed Notes, 9.13%, due 1/15/19
|
537,825
|
|||||||
11,211,694
|
|||||||||
Specialty Retail (2.5%)
|
|||||||||
685,000
|
PC Merger Sub, Inc., Senior Notes, 8.88%, due 8/1/20
|
727,813
|
ñ
|
||||||
4,320,000
|
Toys "R" Us Property Co. I LLC, Guaranteed Notes, 10.75%, due 7/15/17
|
4,671,000
|
|||||||
1,358,000
|
Toys "R" Us Property Co. II LLC, Senior Secured Notes, 8.50%, due 12/1/17
|
1,458,152
|
|||||||
6,856,965
|
|||||||||
Steel Producers—Products (1.5%)
|
|||||||||
920,000
|
ArcelorMittal, Senior Unsecured Notes, 6.13%, due 6/1/18
|
916,951
|
|||||||
3,060,000
|
ArcelorMittal, Senior Unsecured Notes, 5.50%, due 8/5/20
|
2,951,248
|
|||||||
210,000
|
ArcelorMittal, Senior Unsecured Notes, 5.75%, due 3/1/21
|
202,765
|
|||||||
4,070,964
|
|||||||||
Support—Services (2.1%)
|
|||||||||
2,205,000
|
ADS Waste Holdings, Inc., Senior Notes, 8.25%, due 10/1/20
|
2,282,175
|
ñ
|
||||||
730,000
|
HDTFS, Inc., Guaranteed Notes, 5.88%, due 10/15/20
|
737,300
|
ñ
|
||||||
990,000
|
Iron Mountain, Inc., Guaranteed Notes, 7.75%, due 10/1/19
|
1,116,225
|
|||||||
1,240,000
|
Knowledge Learning Corp., Inc., Guaranteed Notes, 7.75%, due 2/1/15
|
1,091,200
|
ñ
|
||||||
570,000
|
RSC Equipment Rental, Inc., Senior Unsecured Notes, 8.25%, due 2/1/21
|
629,850
|
|||||||
5,856,750
|
|||||||||
Telecom—Integrated Services (9.1%)
|
|||||||||
460,000
|
CenturyLink, Inc., Senior Unsecured Notes, Ser. S, 6.45%, due 6/15/21
|
504,290
|
|||||||
3,655,000
|
Citizens Communications Co., Senior Unsecured Notes, 9.00%, due 8/15/31
|
3,901,712
|
|||||||
1,030,000
|
Integra Telecom Holdings, Inc., Senior Secured Notes, 10.75%, due 4/15/16
|
1,050,600
|
ñ
|
||||||
4,163,290
|
Intelsat Bermuda Ltd., Guaranteed Notes, 11.50%, due 2/4/17
|
4,381,863
|
c
|
||||||
670,000
|
Intelsat Jackson Holdings SA, Guaranteed Notes, 8.50%, due 11/1/19
|
752,075
|
|||||||
355,000
|
Level 3 Communications, Inc., Senior Unsecured Notes, 8.88%, due 6/1/19
|
372,750
|
ñ
|
||||||
1,370,000
|
Level 3 Financing, Inc., Guaranteed Notes, 8.13%, due 7/1/19
|
1,462,475
|
|||||||
1,225,000
|
Level 3 Financing, Inc., Guaranteed Notes, 8.63%, due 7/15/20
|
1,335,250
|
|||||||
1,280,000
|
PAETEC Holding Corp., Senior Secured Notes, 8.88%, due 6/30/17
|
1,379,200
|
|||||||
510,000
|
PAETEC Holding Corp., Guaranteed Notes, 9.88%, due 12/1/18
|
582,675
|
|||||||
1,475,000
|
Qwest Communications Int'l, Inc., Guaranteed Notes, 7.13%, due 4/1/18
|
1,557,998
|
500,000
|
Qwest Corp., Senior Unsecured Notes, 6.75%, due 12/1/21
|
598,014
|
|||||||
1,874,000
|
U.S. West Communications Group, Senior Unsecured Notes, 6.88%, due 9/15/33
|
1,883,370
|
|||||||
715,000
|
Windstream Corp., Guaranteed Notes, 7.88%, due 11/1/17
|
796,331
|
|||||||
65,000
|
Windstream Corp., Guaranteed Notes, 7.00%, due 3/15/19
|
66,544
|
|||||||
460,000
|
Windstream Corp., Guaranteed Notes, 7.75%, due 10/15/20
|
495,650
|
|||||||
1,610,000
|
Windstream Corp., Guaranteed Notes, 7.75%, due 10/1/21
|
1,740,813
|
|||||||
2,065,000
|
Windstream Corp., Guaranteed Notes, 7.50%, due 6/1/22
|
2,188,900
|
|||||||
25,050,510
|
PRINCIPAL AMOUNT
|
VALUE†
|
||||||||
Telecom—Wireless (4.8%)
|
|||||||||
$
|
3,500,000
|
Clearwire Communications LLC, Senior Secured Notes, 12.00%, due 12/1/15
|
$
|
3,727,500
|
ñ
|
||||
570,000
|
SBA Telecommunications, Inc., Guaranteed Notes, 5.75%, due 7/15/20
|
592,800
|
ñ
|
||||||
2,245,000
|
Sprint Capital Corp., Guaranteed Notes, 6.88%, due 11/15/28
|
2,295,512
|
ØØ
|
||||||
1,975,000
|
Sprint Capital Corp., Guaranteed Notes, 8.75%, due 3/15/32
|
2,330,500
|
|||||||
475,000
|
Sprint Nextel Corp., Guaranteed Notes, 9.00%, due 11/15/18
|
586,625
|
ñ
|
||||||
1,147,000
|
Sprint Nextel Corp., Guaranteed Notes, 7.00%, due 3/1/20
|
1,330,520
|
ñ
|
||||||
410,000
|
Wind Acquisition Finance SA, Senior Secured Notes, 7.25%, due 2/15/18
|
399,750
|
ñ
|
||||||
2,035,000
|
Wind Acquisition Finance SA, Senior Secured Notes, 7.25%, due 2/15/18
|
1,973,950
|
ñ
|
||||||
13,237,157
|
|||||||||
Total Corporate Debt Securities (Cost $331,802,506)
|
345,188,831
|
||||||||
NUMBER OF SHARES
|
|||||||||
Short-Term Investments (0.0%)
|
|||||||||
1
|
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $1)
|
1
|
|||||||
Total Investments (136.5%) (Cost $360,356,242)
|
374,281,890
|
##
|
|||||||
Liabilities, less cash, receivables and other assets [(26.6%)]
|
(72,970,408
|
)±
|
|||||||
Liquidation Value of Perpetual Preferred Shares [(9.9%)]
|
(27,175,000
|
)
|
|||||||
Total Net Assets Applicable to Common Shareholders (100.0%)
|
$
|
274,136,482
|
Investments:
|
Level 1
|
Level 2
|
Level 3§
|
Total
|
|||||||||||||
Bank Loan Obligations^
|
$ —
|
|
$ 29,093,058
|
$ —
|
|
$ 29,093,058
|
|||||||||||
Corporate Debt Securities
|
|||||||||||||||||
Airlines
|
—
|
2,431,601
|
885,996
|
3,317,597
|
|||||||||||||
Automakers
|
—
|
2,500,037
|
—
|
2,500,037
|
|||||||||||||
Banking
|
—
|
9,332,204
|
—
|
9,332,204
|
|||||||||||||
Building & Construction
|
—
|
2,218,313
|
—
|
2,218,313
|
|||||||||||||
Building Materials
|
—
|
5,730,079
|
—
|
5,730,079
|
|||||||||||||
Chemicals
|
—
|
12,882,994
|
—
|
12,882,994
|
|||||||||||||
Computer Hardware
|
—
|
1,572,725
|
—
|
1,572,725
|
|||||||||||||
Consumer—Commercial Lease Financing
|
—
|
11,814,757
|
—
|
11,814,757
|
|||||||||||||
Consumer Products
|
—
|
368,194
|
—
|
368,194
|
|||||||||||||
Department Stores
|
—
|
6,609,515
|
—
|
6,609,515
|
|||||||||||||
Electric—Generation
|
—
|
7,841,770
|
—
|
7,841,770
|
|||||||||||||
Electric—Integrated
|
—
|
1,932,358
|
—
|
1,932,358
|
|||||||||||||
Electronics
|
—
|
8,466,073
|
—
|
8,466,073
|
|||||||||||||
Energy—Exploration & Production
|
—
|
36,374,772
|
—
|
36,374,772
|
|||||||||||||
Food & Drug Retailers
|
—
|
2,990,220
|
—
|
2,990,220
|
|||||||||||||
Gaming
|
—
|
19,232,569
|
—
|
19,232,569
|
|||||||||||||
Gas Distribution
|
—
|
21,795,346
|
—
|
21,795,346
|
|||||||||||||
Health Facilities
|
—
|
16,075,950
|
—
|
16,075,950
|
|||||||||||||
Hotels
|
—
|
945,800
|
—
|
945,800
|
|||||||||||||
Investments & Misc. Financial Services
|
—
|
6,307,350
|
—
|
6,307,350
|
|||||||||||||
Leisure
|
—
|
1,306,594
|
—
|
1,306,594
|
|||||||||||||
Machinery
|
—
|
4,141,100
|
—
|
4,141,100
|
|||||||||||||
Media—Broadcast
|
—
|
13,929,675
|
—
|
13,929,675
|
|||||||||||||
Media—Cable
|
—
|
15,315,394
|
—
|
15,315,394
|
Investments:
|
Level 1
|
Level 2
|
Level 3§
|
Total
|
|||||||||||||
Media—Services
|
$ —
|
|
$ 5,261,056
|
|
$ —
|
|
$ 5,261,056
|
||||||||||
Medical Products
|
—
|
3,823,762
|
—
|
3,823,762
|
|||||||||||||
Metals—Mining Excluding Steel
|
—
|
11,906,500
|
—
|
11,906,500
|
|||||||||||||
Packaging
|
—
|
18,906,137
|
—
|
18,906,137
|
|||||||||||||
Pharmaceuticals
|
—
|
7,474,225
|
—
|
7,474,225
|
|||||||||||||
Printing & Publishing
|
—
|
17,403,612
|
—
|
17,403,612
|
|||||||||||||
Real Estate Dev. & Mgt.
|
—
|
1,128,113
|
—
|
1,128,113
|
|||||||||||||
Software—Services
|
—
|
11,211,694
|
—
|
11,211,694
|
|||||||||||||
Specialty Retail
|
—
|
6,856,965
|
—
|
6,856,965
|
|||||||||||||
Steel Producers—Products
|
—
|
4,070,964
|
—
|
4,070,964
|
|||||||||||||
Support—Services
|
—
|
5,856,750
|
—
|
5,856,750
|
|||||||||||||
Telecom—Integrated Services
|
—
|
25,050,510
|
—
|
25,050,510
|
|||||||||||||
Telecom—Wireless
|
—
|
13,237,157
|
—
|
13,237,157
|
|||||||||||||
Total Corporate Debt Securities
|
—
|
344,302,835
|
885,996
|
345,188,831
|
|||||||||||||
Short-Term Investments
|
—
|
1
|
—
|
1
|
|||||||||||||
Total Investments
|
$ —
|
|
$ 373,395,894
|
$ 885,996
|
$ 374,281,890
|
Beginning
balance, as
of 11/1/11
|
Accrued
discounts/
(premiums)
|
Realized
gain/loss
|
Change
in unrealized
appreciation/
(depreciation)
|
Purchases
|
Sales
|
Transfers
in to
Level 3
|
Transfers
out of
Level 3
|
Balance as
of 10/31/12
|
Net change in
unrealized
appreciation/
(depreciation)
from
investments
still held
as of 10/31/12
|
||||||||||||||||||||||||||||
Investments in
Securities:
|
|||||||||||||||||||||||||||||||||||||
Corporate Debt
Securities
|
|||||||||||||||||||||||||||||||||||||
Airlines $922,070
|
|
$ —
|
|
$ (3,754
|
)
|
|
$ 56,009
|
$ —
|
$ (88,329
|
)
|
$ —
|
$ —
|
$ 885,996
|
|
$ 56,009
|
||||||||||||||||||||||
Total $922,070
|
|
$ —
|
|
$(3,754
|
)
|
|
$ 56,009
|
$ —
|
$(88,329
|
)
|
|
$ —
|
|
$ —
|
|
$ 885,996
|
|
$ 56,009
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||
Interest rate swap contracts
|
|
$ —
|
|
$ (3,772,287
|
)
|
|
$ —
|
|
$ (3,772,287
|
)
|
HIGH YIELD
STRATEGIES
FUND INC.
|
|||||
October 31, 2012
|
|||||
Assets
|
|||||
Investments in securities, at value* (Note A)—see Schedule of Investments:
|
|||||
Unaffiliated issuers
|
$ 374,281,890
|
||||
Deposits with brokers for open swap contracts
|
3,752,405
|
||||
Interest receivable
|
6,949,894
|
||||
Receivable for securities sold
|
16,465,506
|
||||
Prepaid expenses and other assets
|
240,450
|
||||
Total Assets
|
401,690,145
|
||||
Liabilities
|
|||||
Notes payable (Note A)
|
82,600,000
|
||||
Interest rate swaps, at value (Note A)
|
3,772,287
|
||||
Due to custodian
|
745,739
|
||||
Distributions payable—preferred shares
|
78,755
|
||||
Distributions payable—common shares
|
14
|
||||
Payable for securities purchased
|
12,740,912
|
||||
Payable to investment manager—net (Note B)
|
195,429
|
||||
Payable to administrator (Note B)
|
16,286
|
||||
Interest payable
|
129,472
|
||||
Accrued expenses and other payables
|
99,769
|
||||
Total Liabilities
|
100,378,663
|
||||
Perpetual Preferred Shares Series A (1,087 shares issued and outstanding) at liquidation value
|
27,175,000
|
||||
Net Assets applicable to Common Shareholders
|
$ 274,136,482
|
||||
Net Assets applicable to Common Shareholders consist of:
|
|||||
Paid-in capital—common shares
|
$ 294,030,813
|
||||
Undistributed net investment income (loss)
|
352,744
|
||||
Accumulated net realized gains (losses) on investments
|
(30,400,436
|
)
|
|||
Net unrealized appreciation (depreciation) in value of investments
|
10,153,361
|
||||
Net Assets applicable to Common Shareholders
|
$ 274,136,482
|
||||
Common Shares Outstanding (no par value; unlimited number of shares authorized)
|
19,540,585
|
||||
Net Asset Value Per Common Share Outstanding
|
$ 14.03
|
||||
*Cost of Investments
|
$ 360,356,242
|
HIGH YIELD
STRATEGIES
FUND INC.
|
|||||
For the Year Ended
October 31, 2012
|
|||||
Investment Income:
|
|||||
Income (Note A):
|
|||||
Interest income—unaffiliated issuers
|
$ 27,512,238
|
||||
Expenses:
|
|||||
Investment management fees (Note B)
|
2,222,484
|
||||
Administration fees (Note B)
|
185,207
|
||||
Audit fees
|
53,050
|
||||
Basic maintenance expense (Note A)
|
25,000
|
||||
Custodian fees (Note A)
|
139,339
|
||||
Insurance expense
|
19,779
|
||||
Legal fees
|
88,414
|
||||
Shareholder reports
|
98,478
|
||||
Stock exchange listing fees
|
8,272
|
||||
Stock transfer agent fees
|
22,859
|
||||
Interest expense (Note A)
|
1,797,013
|
||||
Directors' fees and expenses
|
52,935
|
||||
Miscellaneous
|
15,715
|
||||
Total expenses
|
4,728,545
|
||||
Investment management fees waived (Note B)
|
(130,452
|
)
|
|||
Expenses reduced by custodian fee expense offset arrangement (Note A)
|
(262
|
)
|
|||
Total net expenses
|
4,597,831
|
||||
Net investment income (loss)
|
$ 22,914,407
|
||||
Realized and Unrealized Gain (Loss) on Investments (Note A):
|
|||||
Net realized gain (loss) on:
|
|||||
Sales of investment securities of unaffiliated issuers
|
9,914,434
|
||||
Interest rate swap contracts
|
(1,185,023
|
)
|
|||
Change in net unrealized appreciation (depreciation) in value of:
|
|||||
Unaffiliated investment securities
|
11,854,609
|
||||
Interest rate swap contracts
|
(708,219
|
)
|
|||
Net gain (loss) on investments
|
19,875,801
|
||||
Distributions to Preferred Shareholders
|
(930,664
|
)
|
|||
Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations
|
$ 41,859,544
|
HIGH YIELD STRATEGIES FUND INC.
|
|||||||||
Year Ended
October 31,
2012
|
Year Ended
October 31,
2011
|
||||||||
Increase (Decrease) in Net Assets Applicable to Common Shareholders:
|
|||||||||
From Operations (Note A):
|
|||||||||
Net investment income (loss)
|
$
|
22,914,407
|
$
|
25,945,352
|
|||||
Net realized gain (loss) on investments
|
8,729,411
|
13,754,606
|
|||||||
Change in net unrealized appreciation (depreciation) of investments
|
11,146,390
|
(29,920,282
|
)
|
||||||
Distributions to Preferred Shareholders From (Note A):
|
|||||||||
Net investment income
|
(930,664
|
)
|
(879,763
|
)
|
|||||
Net increase (decrease) in net assets applicable to common shareholders resulting
from operations
|
41,859,544
|
8,899,913
|
|||||||
Distributions to Common Shareholders From (Note A):
|
|||||||||
Net investment income
|
(21,844,976
|
)
|
(24,861,088
|
)
|
|||||
From Capital Share Transactions (Note D):
|
|||||||||
Proceeds from reinvestment of dividends and distributions
|
951,881
|
1,312,708
|
|||||||
Net Increase (Decrease) in Net Assets Applicable to Common Shareholders
|
20,966,449
|
(14,648,467
|
)
|
||||||
Net Assets Applicable to Common Shareholders:
|
|||||||||
Beginning of year
|
253,170,033
|
267,818,500
|
|||||||
End of year
|
$
|
274,136,482
|
$
|
253,170,033
|
|||||
Undistributed net investment income (loss) at end of year
|
$
|
352,744
|
$
|
359,722
|
HIGH YIELD
STRATEGIES
FUND INC.
|
|||||
For the
Year Ended
October 31, 2012
|
|||||
Increase (decrease) in cash:
|
|||||
Cash flows from operating activities:
|
|||||
Net increase in net assets applicable to Common Shareholders
resulting from operations
|
$
|
41,859,544
|
|||
Adjustments to reconcile net increase in net assets applicable to
Common Shareholders resulting from operations to net
cash provided by operating activities:
|
|||||
Changes in assets and liabilities:
|
|||||
Purchase of investment securities
|
(402,495,315
|
)
|
|||
Proceeds from disposition of investment securities
|
399,033,443
|
||||
Purchase/sale of short-term investment securities, net
|
3,438,667
|
||||
Increase in net interest payable/receivable on interest rate swap contracts
|
(15,975
|
)
|
|||
Decrease in interest receivable
|
810,528
|
||||
Decrease in prepaid expenses and other assets
|
242,657
|
||||
Increase in receivable for securities sold
|
(11,805,920
|
)
|
|||
Increase in deposits with brokers for open swap contracts
|
(702,405
|
)
|
|||
Decrease in accumulated unpaid dividends on Preferred Shares
|
(197
|
)
|
|||
Increase in payable for securities purchased
|
9,601,215
|
||||
Decrease in interest payable
|
(379
|
)
|
|||
Net amortization of discount on investments
|
144,376
|
||||
Decrease in accrued expenses and other payables
|
(87,087
|
)
|
|||
Unrealized appreciation on securities
|
(11,854,609
|
)
|
|||
Unrealized depreciation on interest rate swap contracts
|
708,219
|
||||
Net realized gain from investments
|
(9,914,434
|
)
|
|||
Net realized loss from interest rate swap contracts
|
1,185,023
|
||||
Net cash provided by operating activities
|
$
|
20,147,351
|
|||
Cash flows from financing activities:
|
|||||
Cash distributions paid on Common Shares
|
(20,893,090
|
)
|
|||
Net cash used in financing activities
|
(20,893,090
|
)
|
|||
Net increase (decrease) in cash
|
(745,739
|
)
|
|||
Cash:
|
|||||
Beginning balance
|
0
|
||||
Ending balance
|
$
|
(745,739
|
)
|
||
Supplemental disclosure
|
|||||
Cash paid for interest
|
$
|
1,797,392
|
Paid-in Capital
|
Undistributed
Net Investment
Income (Loss)
|
Accumulated
Net Realized
Gains (Losses)
on Investments
|
|||||||||
|
$ (1,039,279
|
)
|
|
$ (145,745
|
)
|
$ 1,185,024
|
Distributions Paid From:
|
|||||||||||||||||||||||||||||||||
Ordinary Income
|
Long-Term
Capital Gains
|
Tax Return of
Capital
|
Total
|
||||||||||||||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||||||||||
$ |
22,775,640
|
$ |
25,740,851
|
$ —
|
$ —
|
$ —
|
|
$ —
|
|
$ 22,775,640
|
|
$ 25,740,851
|
Undistributed
Ordinary
Income
|
Undistributed
Long-Term
Gain
|
Unrealized
Appreciation
(Depreciation)
|
Loss
Carryforwards
and Deferrals
|
Other
Temporary
Differences
|
Total
|
||||||||||||||||||
|
$ —
|
|
$ —
|
$10,571,382
|
$(30,386,944
|
)
|
$(78,769
|
)
|
$(19,894,331
|
)
|
Pre-Enactment
|
|||||||||||||
Expiring In:
|
|||||||||||||
2015
|
2016
|
2017
|
|||||||||||
$
|
14,913,177
|
(1)
|
$
|
10,036,834
|
(1)
|
$
|
5,436,933
|
Rate Type
|
|||||||||||||||||||||||||||
Swap
Counterparty
|
Notional
Amount(1)
|
Termination
Date
|
Fixed-rate
Payments
Made by
the Fund
|
Variable-rate
Payments
Received by
the Fund
|
Accrued Net
Interest
Receivable
(Payable)
|
Unrealized
Appreciation
(Depreciation)
|
Total Fair
Value
|
||||||||||||||||||||
Citibank, N.A.
|
$
|
25,000,000
|
March 18, 2015
|
1.677
|
%
|
.385
|
%(2)
|
$
|
(38,320
|
)
|
$
|
(751,431
|
)
|
$
|
(789,751
|
)
|
|||||||||||
Citibank, N.A.
|
25,000,000
|
August 9, 2015
|
1.120
|
%
|
.437
|
%(3)
|
(38,237
|
)
|
(462,266
|
)
|
(500,503
|
)
|
|||||||||||||||
Citibank, N.A.
|
50,000,000
|
December 7, 2015
|
1.883
|
%
|
.409
|
%(4)
|
(345,442
|
)
|
(2,136,591
|
)
|
(2,482,033
|
)
|
|||||||||||||||
$
|
(421,999
|
)
|
$
|
(3,350,288
|
)
|
$
|
(3,772,287
|
)
|
Liability Derivatives
|
|||||||
Interest Rate Risk
|
Statement of Assets and Liabilities Location
|
||||||
Interest Rate Swap Contract
|
$ (3,772,287
|
)
|
Interest rate swaps,
|
||||
Total Value
|
$ (3,772,287
|
)
|
at value(1)
|
Realized Gain (Loss)
|
|||||||
Interest Rate Risk
|
Statement of Operations Location
|
||||||
Interest Rate Swap Contract
|
$ (1,185,023
|
)
|
Net realized gain (loss)
|
||||
Total Realized Gain (Loss)
|
|
$ (1,185,023
|
)
|
on: interest rate swap contracts
|
|||
Change in Appreciation (Depreciation)
|
|||||||
Interest Rate Risk
|
Statement of Operations Location
|
||||||
Interest Rate Swap Contract
|
$ (708,219
|
)
|
Change in net unrealized appreciation
|
||||
Total Change in Appreciation (Depreciation)
|
$ (708,219
|
)
|
(depreciation) in value of: interest rate swap contracts
|
Common Shares
Outstanding
|
Common Shares
Owned by NBAFM
|
Common Shares
Owned by Neuberger
|
|||||||||
19,540,585
|
18,305
|
5,116
|
For the Year Ended October 31,
|
|||||||||
2012
|
2011
|
||||||||
Shares Issued on Reinvestment of Dividends and Distributions
|
70,802
|
96,587
|
|||||||
Net Increase (Decrease) in Common Shares Outstanding
|
70,802
|
96,587
|
Year Ended October 31,
|
Period from
January 1,
2010 to
October 31,
|
Year Ended December 31,
|
|||||||||||||||||||||||
2012
|
2011
|
2010^^^
|
2009
|
2008
|
2007^^
|
||||||||||||||||||||
Common Share Net Asset Value,
Beginning of Period
|
$ 13.00
|
|
$ 13.82
|
|
$ 12.54
|
|
$ 7.42
|
|
$ 13.23
|
|
$ 15.05
|
||||||||||||||
Net Investment Income¢
|
1.17
|
1.34
|
1.19
|
1.43
|
1.52
|
1.67
|
|||||||||||||||||||
Net Gain or Losses on Securities
(both realized and unrealized)
|
1.03
|
(0.83
|
)
|
1.20
|
4.97
|
(5.74
|
)
|
(1.34
|
)
|
||||||||||||||||
Common Share Equivalent of Distributions to
Preferred Shareholders From:
|
|||||||||||||||||||||||||
Net Investment Income¢
|
(0.05
|
)
|
(0.05
|
)
|
(0.03
|
)
|
(0.04
|
)
|
(0.27
|
)
|
(0.40
|
)
|
|||||||||||||
Net Realized Gains¢
|
—
|
—
|
—
|
—
|
—
|
(0.01
|
)
|
||||||||||||||||||
Total Distributions to Preferred
Shareholders
|
(0.05
|
)
|
(0.05
|
)
|
(0.03
|
)
|
(0.04
|
)
|
(0.27
|
)
|
(0.41
|
)
|
|||||||||||||
Total From Investment Operations
Applicable to Common Shareholders
|
2.15
|
0.46
|
2.36
|
6.36
|
(4.49
|
)
|
(0.08
|
)
|
|||||||||||||||||
Less Distributions to Common
Shareholders From:
|
|||||||||||||||||||||||||
Net Investment Income
|
(1.12
|
)
|
(1.28
|
)
|
(1.08
|
)
|
(1.26
|
)
|
(1.22
|
)
|
(1.69
|
)
|
|||||||||||||
Net Realized Gains
|
—
|
—
|
—
|
—
|
—
|
(0.05
|
)
|
||||||||||||||||||
Tax Return of Capital
|
—
|
—
|
—
|
—
|
(0.10
|
)
|
—
|
||||||||||||||||||
Total Distributions to
Common Shareholders
|
(1.12
|
)
|
(1.28
|
)
|
(1.08
|
)
|
(1.26
|
)
|
(1.32
|
)
|
(1.74
|
)
|
|||||||||||||
Accretive Effect of Tender Offer
|
—
|
—
|
—
|
0.02
|
—
|
—
|
|||||||||||||||||||
Common Share Net Asset
Value, End of Period
|
$ 14.03
|
|
$ 13.00
|
|
$ 13.82
|
|
$ 12.54
|
|
$ 7.42
|
|
$ 13.23
|
||||||||||||||
Common Share Market Value,
End of Period
|
|
$ 14.18
|
|
$ 13.55
|
|
$ 14.04
|
|
$ 11.95
|
|
$ 6.38
|
|
$ 11.82
|
|||||||||||||
Total Return, Common Share
Net Asset Value†
|
$ 17.24
|
%
|
$ 3.34
|
%
|
$ 19.78
|
%**
|
$ 92.44
|
%
|
(35.32
|
)%
|
(0.13
|
)%
|
|||||||||||||
Total Return, Common Share
|
Value†
|
13.68 | % | 6.03 | % | 27.69 | %** | 113.27 | % | (37.75 | )% | (11.54 | )% | |||||||||||||
|
|||||||||||||||||||||||||
Ratios are Calculated Using
Average Net Assets
Applicable to Common Shareholders
|
|||||||||||||||||||||||||
Ratio of Gross Expenses#
|
1.81
|
%Ø
|
1.75
|
%Ø
|
2.02
|
%*Ø
|
2.65
|
%Ø
|
1.81
|
%Ø
|
1.44
|
%
|
|||||||||||||
Ratio of Net Expenses
|
1.76
|
%§Ø
|
1.68
|
%§Ø
|
1.95
|
%*§Ø‡‡
|
2.60
|
%§Ø
|
1.80
|
%§Ø
|
1.44
|
%§
|
|||||||||||||
Ratio of Net Investment Income
|
8.79
|
%
|
9.86
|
%
|
11.02
|
%*
|
14.30
|
%
|
13.43
|
%
|
11.33
|
%
|
|||||||||||||
Portfolio Turnover Rate
|
94
|
%
|
100
|
%
|
130
|
%**ØØ
|
159
|
%
|
122
|
%
|
129
|
%
|
|||||||||||||
Net Assets Applicable to Common
Shares, End of Period (000's)
|
$
|
274,136
|
$
|
253,170
|
$
|
267,819
|
$
|
138,293
|
$
|
90,907
|
$
|
162,091
|
|||||||||||||
Perpetual Preferred Shares¢¢
|
|||||||||||||||||||||||||
Preferred Shares Outstanding,
End of Period (000's)
|
$
|
27,175
|
$
|
27,175
|
$
|
27,175
|
$
|
12,300
|
$
|
12,300
|
$
|
90,000
|
|||||||||||||
Asset Coverage Per Share@
|
$
|
277,268
|
$
|
257,980
|
$
|
271,454
|
$
|
306,086
|
$
|
209,943
|
$
|
70,107
|
|||||||||||||
Liquidation Value Per Share
|
$
|
25,000
|
$
|
25,000
|
$
|
25,000
|
$
|
25,000
|
$
|
25,000
|
$
|
25,000
|
|||||||||||||
Notes Payable
|
|||||||||||||||||||||||||
Notes Payable Outstanding,
End of Period (000's)
|
$
|
82,600
|
$
|
82,600
|
$
|
82,600
|
$
|
45,900
|
$
|
45,900
|
$
|
—
|
|||||||||||||
Asset Coverage Per $1,000 of
Notes Payable@@
|
$
|
4,649
|
$
|
4,395
|
$
|
4,572
|
$
|
4,281
|
$
|
3,250
|
$
|
—
|
Year Ended
October 31,
|
Period from
January 1, 2010
to October 31,
|
Year Ended December 31,
|
|||||||||||||||||||||
2012
|
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||||
1.76
|
%
|
1.68
|
%
|
1.95
|
%
|
2.60
|
%
|
1.80
|
%
|
1.44
|
%
|
Year Ended
October 31,
|
Period from
January 1, 2010
to October 31,
|
Year Ended
December 31,
|
|||||||||||||||||
2012
|
2011
|
2010
|
2009
|
2008
|
|||||||||||||||
.69
|
%
|
.61
|
%
|
.63
|
%
|
1.05
|
%
|
.16
|
%
|
Investment Adviser and Administrator
Neuberger Berman Management LLC
605 Third Avenue, 2nd Floor
New York, NY 10158-0180
877.461.1899 or 212.476.9000
|
Stock Transfer Agent and Plan Agent
Computershare Shareowner Services LLC
480 Washington Boulevard
Jersey City, NJ 07317
|
Sub-Adviser
Neuberger Berman Fixed Income LLC
200 South Wacker Drive
Suite 2100
Chicago, IL 60601
|
Legal Counsel
K&L Gates LLP
1601 K Street, NW
Washington, DC 20006
|
Custodian
State Street Bank and Trust Company
2 Avenue de Lafayette
Boston, MA 02111
|
Independent Registered Public Accounting Firm
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
|
Name, (Year of Birth),
and Address(1)
|
Position(s)
and Length
of Time
Served(2)
|
Principal Occupation(s)(3)
|
Number of
Funds in
Fund Complex
Overseen by
Fund Director |
Other Directorships Held
Outside Fund Complex by
Fund Director(3)
|
|||||||
CLASS I
|
|||||||||||
Independent Directors
|
|||||||||||
Faith Colish (1935)
|
Director since 2006
|
Counsel, Carter Ledyard & Milburn LLP (law firm) since October 2002; formerly, Attorney-at-Law and President, Faith Colish, A Professional Corporation, 1980 to 2002.
|
50
|
Formerly, Director, 1997 to 2003, and Advisory Director, 2003 to 2006, ABA Retirement Funds (formerly, American Bar Retirement Association) (not-for-profit membership corporation).
|
|||||||
Michael M. Knetter (1960)
|
Director since 2007
|
President and Chief Executive Officer, University of Wisconsin Foundation, since October 2010; formerly, Dean, School of Business, University of Wisconsin — Madison; formerly, Professor of International Economics and Associate Dean, Amos Tuck School of Business — Dartmouth College, 1998 to 2002.
|
50
|
Director, American Family Insurance (a mutual company, not publicly traded), since March 2009; formerly, Trustee, Northwestern Mutual Series Fund, Inc., 2007 to 2010; formerly, Director, Wausau Paper, 2005 to 2011; formerly, Director, Great Wolf Resorts, 2004 to 2009.
|
|||||||
Peter P. Trapp (1944)
|
Director since 2006
|
Retired; formerly, Regional Manager for Mid-Southern Region, Ford Motor Credit Company, September 1997 to 2007; formerly, President, Ford Life Insurance Company, April 1995 to August 1997.
|
50
|
None.
|
Name, (Year of Birth),
and Address(1)
|
Position(s)
and Length
of Time
Served(2)
|
Principal Occupation(s)(3)
|
Number of
Funds in
Fund Complex
Overseen by
Fund Director
|
Other Directorships Held
Outside Fund Complex by
Fund Director(3)
|
|||||||
Director who is an "Interested Person"
|
|||||||||||
Robert Conti* (1956)
|
Chief Executive Officer, President and Director since 2008; prior thereto, Executive Vice President in 2008 and Vice President 2006 to 2008
|
Managing Director, Neuberger, since 2007; formerly, Senior Vice President, Neuberger, 2003 to 2006; formerly, Vice President, Neuberger, 1999 to 2003; President and Chief Executive Officer, Management, since 2008; formerly, Senior Vice President, Management, 2000 to 2008; Managing Director, Neuberger Berman Fixed Income LLC ("NBFI"), since 2009.
|
50
|
Director, Staten Island Mental Health Society, since 1994; formerly, Chairman of the Board, Staten Island Mental Health Society, 2008 to 2011.
|
|||||||
CLASS II
|
|||||||||||
Independent Directors
|
|||||||||||
George W. Morriss (1947)
|
Director since 2007
|
Adjunct Faculty Member, Columbia University School of International Policy and Administration, since October 2012; formerly, Executive Vice President and Chief Financial Officer, People's Bank, Connecticut (a financial services company), 1991 to 2001.
|
50
|
Formerly, Manager, Larch Lane Multi-Strategy Fund complex (which consisted of three funds), 2006 to 2011; formerly, Member, NASDAQ Issuers' Affairs Committee, 1995 to 2003.
|
Name, (Year of Birth),
and Address(1)
|
Position(s)
and Length
of Time
Served(2)
|
Principal Occupation(s)(3)
|
Number of
Funds in
Fund Complex
Overseen by
Fund Director
|
Other Directorships Held
Outside Fund Complex by
Fund Director(3)
|
|||||||
Jack L. Rivkin (1940)
|
Director since 2006; President, 2006 to 2008
|
Formerly, Executive Vice President and Chief Investment Officer, Neuberger Berman Holdings LLC (holding company), 2002 to August 2008 and 2003 to August 2008, respectively; formerly, Managing Director and Chief Investment Officer, Neuberger, December 2005 to August 2008 and 2003 to August 2008, respectively; formerly, Executive Vice President, Neuberger, December 2002 to 2005; formerly, Director and Chairman, Management, December 2002 to August 2008; formerly, Executive Vice President, Citigroup Investments, Inc., September 1995 to February 2002; formerly, Executive Vice President, Citigroup Inc., September 1995 to February 2002.
|
50
|
Director, Idealab (private company), since 2009; Director, Distributed World Power (private company), since 2009; Director, Dale Carnegie and Associates, Inc. (private company), since 1999; Director, Solbright, Inc. (private company), since 1998; Director, SA Agricultural Fund, since 2009; Chairman and Director, Essential Brands (consumer products) since 2008; formerly, Director, New York Society of Security Analysts, 2006 to 2008.
|
|||||||
Tom D. Seip (1950)
|
Director since 2006; Chairman of the Board since 2008; Lead Independent Director from 2006 to 2008
|
General Partner, Ridgefield Farm LLC (a private investment vehicle); formerly, President and CEO, Westaff, Inc. (temporary staffing), May 2001 to January 2002; formerly, Senior Executive, The Charles Schwab Corporation, 1983 to 1998, including Chief Executive Officer, Charles Schwab Investment Management, Inc.; Trustee, Schwab Family of Funds and Schwab Investments, 1997 to 1998; and Executive Vice President-Retail Brokerage, Charles Schwab & Co., Inc., 1994 to 1997.
|
50
|
Director, H&R Block, Inc. (financial services company), since May 2001; Chairman, Governance and Nominating Committee, H&R Block, Inc., since 2011; formerly, Chairman, Compensation Committee, H&R Block, Inc., 2006 to 2010; formerly, Director, Forward Management, Inc. (asset management company), 1999 to 2006.
|
Name, (Year of Birth),
and Address(1)
|
Position(s)
and Length
of Time
Served(2)
|
Principal Occupation(s)(3)
|
Number of
Funds in
Fund Complex
Overseen by
Fund Director
|
Other Directorships Held
Outside Fund Complex by
Fund Director(3)
|
|||||||
CLASS III
|
|||||||||||
Independent Directors
|
|||||||||||
Martha C. Goss (1949)
|
Director since 2007
|
President, Woodhill Enterprises Inc./Chase Hollow Associates LLC (personal investment vehicle), since 2006; Chief Operating and Financial Officer, Hopewell Holdings LLC/ Amwell Holdings, LLC (a holding company for investments in the healthcare sector), since 2003; formerly, Consultant, Resources Connection (temporary staffing), 2002 to 2006.
|
50
|
Director, American Water (water utility), since 2003; Director, Channel Reinsurance (financial guaranty reinsurance), 2006 to 2010; Director, Allianz Life of New York (insurance), since 2005; Director, Financial Women's Association of New York (not-for-profit association), since 2003; Trustee Emerita, Brown University, since 1998; formerly, Director, Ocwen Financial Corporation (mortgage servicing), 2005 to 2010; formerly, Advisory Board Member, Attensity (software developer), 2005 to 2007; formerly, Director, Bank Leumi (commercial bank), 2005 to 2007; formerly, Director, Claire's Stores, Inc. (retailer), 2005 to 2007.
|
|||||||
Howard A. Mileaf (1937)
|
Director since 2006
|
Retired; formerly, Vice President and General Counsel, WHX Corporation (holding company), 1993 to 2001.
|
50
|
Formerly, Director, Webfinancial Corporation (holding company), 2002 to 2008; formerly, Director, WHX Corporation (holding company), 2002 to 2005; formerly, Director, State Theatre of New Jersey (not-for-profit theatre), 2000 to 2005.
|
Name, (Year of Birth),
and Address(1)
|
Position(s)
and Length
of Time
Served(2)
|
Principal Occupation(s)(3)
|
Number of
Funds in
Fund Complex
Overseen by
Fund Director
|
Other Directorships Held
Outside Fund Complex by
Fund Director(3)
|
|||||||
Candace L. Straight (1947)
|
Director since 2006
|
Private investor and consultant specializing in the insurance industry; formerly, Advisory Director, Securitas Capital LLC (a global private equity investment firm dedicated to making investments in the insurance sector), 1998 to December 2003.
|
50
|
Public Member, Board of Governors and Board of Trustees, Rutgers University, since 2011; Director, Montpelier Re Holdings Ltd. (reinsurance company), since 2006; formerly, Director, National Atlantic Holdings Corporation (property and casualty insurance company), 2004 to 2008; formerly, Director, The Proformance Insurance Company (property and casualty insurance company), 2004 to 2008; formerly, Director, Providence Washington Insurance Company (property and casualty insurance company), 1998 to 2006; formerly, Director, Summit Global Partners (insurance brokerage firm), 2000 to 2005.
|
Name, (Year of Birth),
and Address(1)
|
Position(s)
and Length
of Time
|
Principal Occupation(s)(3)
|
Number of
Funds in
Fund Complex
Overseen by
Fund Director
|
Other Directorships Held
Outside Fund Complex by
Fund Director(3)
|
|||||||
Director who is an "Interested Person"
|
|||||||||||
Joseph V. Amato* (1962)
|
Director since 2008
|
President and Director, Neuberger Berman Group LLC, since 2009; President and Chief Executive Officer, Neuberger and Neuberger Berman Holdings LLC (including its predecessor, Neuberger Berman Inc.), since 2007; Chief Investment Officer, Neuberger, since 2009; Chief Investment Officer (Equities) and Managing Director, Management, since 2009; Managing Director, NBFI since 2007; Board member of NBFI since 2006; formerly, Global Head of Asset Management of Lehman Brothers Holdings Inc.'s ("LBHI") Investment Management Division, 2006 to 2009; formerly, member of LBHI's Investment Management Division's Executive Management Committee, 2006 to 2009; formerly, Managing Director, Lehman Brothers Inc. ("LBI"), 2006 to 2008; formerly, Chief Recruiting and Development Officer, LBI, 2005 to 2006; formerly, Global Head of LBI's Equity Sales and a Member of its Equities Division Executive Committee, 2003 to 2005.
|
50
|
Member of Board of Advisors, McDonough School of Business, Georgetown University, since 2001; Member of New York City Board of Advisors, Teach for America, since 2005; Trustee, Montclair Kimberley Academy (private school), since 2007.
|
Name, (Year of Birth),
and Address(1)
|
Position(s)
and Length of
Time Served
|
Principal Occupation(s)(2)
|
|||
Andrew B. Allard (1961)
|
Anti-Money Laundering Compliance Officer since 2006
|
Senior Vice President, Neuberger, since 2006 and Employee since 1999; Deputy General Counsel, Neuberger, since 2004; formerly, Vice President, Neuberger, 2000 to 2005; formerly, Employee, Management, 1994 to 1999; Anti-Money Laundering Compliance Officer, nine registered investment companies for which Management acts as investment manager and administrator (six since 2002, one since 2003, one since 2005 and one since 2006).
|
|||
Claudia A. Brandon (1956)
|
Executive Vice President since 2008 and Secretary since 2006
|
Senior Vice President, Neuberger, since 2007 and Employee since 1999; Senior Vice President, Management, since 2008 and Assistant Secretary since 2004; formerly, Vice President, Neuberger, 2002 to 2006; formerly, Vice President-Mutual Fund Board Relations, Management, 2000 to 2008; formerly, Vice President, Management, 1986 to 1999 and Employee 1984 to 1999; Executive Vice President, nine registered investment companies for which Management acts as investment manager and administrator (nine since 2008); Secretary, nine registered investment companies for which Management acts as investment manager and administrator (three since 1985, three since 2002, one since 2003, one since 2005 and one since 2006).
|
|||
Anthony DiBernardo (1979)
|
Assistant Treasurer since 2011
|
Vice President, Neuberger, since 2009; Employee, Management, since 2003; Assistant Treasurer, nine registered investment companies for which Management acts as investment manager and administrator (nine since 2011).
|
|||
Maxine L. Gerson (1950)
|
Executive Vice President since 2008 and Chief Legal Officer since 2006 (only for purposes of sections 307 and 406 of the Sarbanes-Oxley Act of 2002)
|
Managing Director, Neuberger, since 2009, and Deputy General Counsel and Assistant Secretary, Neuberger, since 2001; Managing Director, Management, since 2009, and Secretary and General Counsel, Management, since 2004; formerly, Senior Vice President, Neuberger, 2002 to 2009; formerly, Senior Vice President, Management, 2006 to 2009; Executive Vice President, nine registered investment companies for which Management acts as investment manager and administrator (nine since 2008); Chief Legal Officer (only for purposes of sections 307 and 406 of the Sarbanes-Oxley Act of 2002), nine registered investment companies for which Management acts as investment manager and administrator (eight since 2005 and one since 2006).
|
|||
Sheila R. James (1965)
|
Assistant Secretary since 2006
|
Vice President, Neuberger, since 2008 and Employee since 1999; formerly, Assistant Vice President, Neuberger, 2007; formerly, Employee, Management, 1991 to 1999; Assistant Secretary, nine registered investment companies for which Management acts as investment manager and administrator (six since 2002, one since 2003, one since 2005 and one since 2006).
|
|||
Brian Kerrane (1969)
|
Vice President since 2008
|
Senior Vice President, Neuberger, since 2006; formerly, Vice President, Neuberger, 2002 to 2006; Vice President, Management, since 2008 and Employee since 1991; Vice President, nine registered investment companies for which Management acts as investment manager and administrator (nine since 2008).
|
Name, (Year of Birth),
and Address(1)
|
Position(s)
and Length of
Time Served
|
Principal Occupation(s)(2)
|
|||
Kevin Lyons (1955)
|
Assistant Secretary since 2006
|
Assistant Vice President, Neuberger, since 2008 and Employee since 1999; formerly, Employee, Management, 1993 to 1999; Assistant Secretary, nine registered investment companies for which Management acts as investment manager and administrator (seven since 2003, one since 2005 and one since 2006).
|
|||
Owen F. McEntee, Jr. (1961)
|
Vice President since 2008
|
Vice President, Neuberger, since 2006; Employee, Management, since 1992; Vice President, nine registered investment companies for which Management acts as investment manager and administrator (nine since 2008).
|
|||
John M. McGovern (1970)
|
Treasurer and Principal Financial and Accounting Officer since 2006
|
Senior Vice President, Neuberger, since 2007; formerly, Vice President, Neuberger, 2004 to 2006; Employee, Management, since 1993; Treasurer and Principal Financial and Accounting Officer, nine registered investment companies for which Management acts as investment manager and administrator (eight since 2005 and one since 2006); formerly, Assistant Treasurer, eight registered investment companies for which Management acts as investment manager and administrator, 2002 to 2005.
|
|||
Frank Rosato (1971)
|
Assistant Treasurer since 2006
|
Vice President, Neuberger, since 2006; Employee, Management, since 1995; Assistant Treasurer, nine registered investment companies for which Management acts as investment manager and administrator (eight since 2005 and one since 2006).
|
|||
Neil S. Siegel (1967)
|
Vice President since 2008
|
Managing Director, Management, since 2008; Managing Director, Neuberger, since 2006; formerly, Senior Vice President, Neuberger, 2004 to 2006; Vice President, nine registered investment companies for which Management acts as investment manager and administrator (nine since 2008).
|
|||
Chamaine Williams (1971)
|
Chief Compliance Officer since 2006
|
Senior Vice President, Neuberger, since 2007; Chief Compliance Officer, Management, since 2006; Chief Compliance Officer, nine registered investment companies for which Management acts as investment manager and administrator (eight since 2005 and one since 2006); formerly, Senior Vice President, LBI, 2007 to 2008; formerly, Vice President, LBI, 2003 to 2006; formerly, Chief Compliance Officer, Lehman Brothers Asset Management Inc., 2003 to 2007; formerly, Chief Compliance Officer, Lehman Brothers Alternative Investment Management LLC, 2003 to 2007.
|
Votes For
|
Votes
Withheld
|
Abstentions
|
Broker
Non-Votes
|
||||||||||||||
Faith Colish
|
12,543,868
|
525,031
|
—
|
—
|
|||||||||||||
Robert Conti
|
12,526,668
|
542,231
|
—
|
—
|
|||||||||||||
Michael M. Knetter
|
12,521,182
|
547,717
|
—
|
—
|
|||||||||||||
Peter P. Trapp
|
12,519,975
|
549,924
|
—
|
—
|
Type of Account
|
Number of
Accounts
Managed
|
Total Assets
Managed
($ millions)
|
Number of Accounts
Managed for which
Advisory Fee is
Performance-Based
|
Assets Managed for
which Advisory Fee is
Performance-Based
($ millions)
|
||||
Ann H. Benjamin
|
||||||||
Registered Investment Companies*
|
7 | $5,566 | 0 | N/A | ||||
Other Pooled Investment Vehicles
|
11 | $11,647 | 0 | N/A | ||||
Other Accounts**
|
34 | $7,486 | 1 | $155 | ||||
Russ Covode
|
||||||||
Registered Investment Companies*
|
4 | $4,129 | 0 | N/A | ||||
Other Pooled Investment Vehicles
|
11 | $11,647 | 0 | N/A | ||||
Other Accounts**
|
29 | $6,622 | 1 | $155 | ||||
Thomas P. O’Reilly
|
||||||||
Registered Investment Companies*
|
7 | $5,566 | 0 | N/A | ||||
Other Pooled Investment Vehicles
|
11 | $11,647 | 0 | N/A | ||||
Other Accounts**
|
34 | $7,486 | 1 | $155 |
Portfolio Manager
|
Dollar Range of Equity
Securities Owned in the
Registrant
|
Ann H. Benjamin
|
E
|
Russ Covode
|
A
|
Thomas P. O’Reilly*
|
A
|
A = None | E = $100,001-$500,000 |
B = $1-$10,000 | F = $500,001-$1,000,000 |
C = $10,001 - $50,000 | G = Over $1,000,000 |
D =$50,001-$100,000 |
(a)
|
Based on an evaluation of the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “Act”)) as of a date within 90 days of the filing date of this document, the Chief Executive Officer and Treasurer and Principal Financial and Accounting Officer of the Registrant have concluded that such disclosure controls and procedures are effectively designed to ensure that information required to be disclosed by the Registrant on Form N-CSR and Form N-Q is accumulated and communicated to the Registrant’s management to allow timely decisions regarding required disclosure.
|
(b)
|
There were no significant changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that have materially
|
|
affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
|
(a)(1)
|
A copy of the Code of Ethics is incorporated by reference to the Registrant’s Form N-CSR, Investment Company Act file number 811-22396 (filed on January 7, 2011).
|
(a)(2)
|
The certifications required by Rule 30a-2(a) of the Act and Section 302 of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley Act”) are filed herewith.
|
(a)(3)
|
Not applicable to the Registrant.
|
(b)
|
The certifications required by Rule 30a-2(b) of the Act and Section 906 of the Sarbanes-Oxley Act are filed herewith.
|
By:
|
/s/ Robert Conti | |
Robert Conti | ||
Chief Executive Officer | ||
By:
|
/s/ Robert Conti | |
Robert Conti | ||
Chief Executive Officer | ||
By:
|
/s/ John M. McGovern | |
John M. McGovern | ||
Treasurer and Principal Financial | ||
and Accounting Officer | ||