Fort Dearborn Income Securities, Karpus: In a 13D filing with the SEC just now, the New York-located Karpus Management disclosed a 3.8% stake in Fort Dearborn Income Securities, Inc. (NYSE:FDI). Despite the nature of the 13D, Karpus did not disclose that it was investing in Fort Dearborn for any specific value-creating purpose, but we’ll let you know if that changes. Shares of the closed-end fund company are up 0.3% today.
Earlier in September, Fort Dearborn announced that its board made several decisions meant to bring more investment choices for the company and help it to increase its risk-adjusted returns. Among the changes adopted by the Board of Directors are: 1) the allowance for the fund to buy non-U.S. dollar-denominated securities, and 2) permission to invest a maximum amount of 10% of its assets in collateralized loan obligations. Also the board made it clear that the fund can invest up to 25% of assets in several options such as preffered stock, convertible securities, etc.