NEW YORK--(BUSINESS WIRE)--Fort Dearborn Income Securities, Inc. (NYSE:FDI) (the “Fund”) announced today that the Board of Directors of the Fund, based on a recommendation from management, intends to pursue a conversion of the Fund from a closed-end fund to an open-end fund. It is anticipated that the Fund’s conversion to an open-end fund will be accomplished through a tax-free reorganization of the Fund into an open-end fund created for the purpose of the conversion (“Fund Reorganization”). A Fund Reorganization requires the approval of shareholders, and it is expected that a Fund Reorganization proposal will be submitted to shareholders for approval at a special shareholder meeting of the Fund to be called in the first half of 2016. If the Fund Reorganization is approved, shareholders of the Fund will become shareholders of a new open-end fund.
Fort Dearborn Income Securities, Inc. is a closed-end bond fund managed by UBS Global Asset Management (Americas), Inc. The Fund invests principally in investment grade, long-term fixed income debt securities. The primary objective of the Fund is to provide its shareholders with: a stable stream of current income consistent with external interest rate conditions; and a total return over time that is above what they could receive by investing individually in the investment grade and long-term maturity sectors of the bond market.
Investing in the Fund entail specific risks, such as interest rate, credit and US government securities risks as well as derivatives risks. Further information regarding the Fund, including a discussion of principal objectives, investment strategies and principal risks, may be found in the fund overview located at http://www.ubs.com/closedendfundsinfo. You may also request copies of the fund overview by calling the Closed-End Funds Desk at 888-793 8637.
Certain statements made in this press release, such as the conversion to an open-end fund, are forward- looking statements. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. These include, but are not limited to, market developments; legal and regulatory developments; and other additional risks and uncertainties. As a result, neither the investment adviser, the Fund nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.
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