Control of the Fund. The Fund shall be the property of the Foundation, held by it as a component fund of the Foundation, and shall not be deemed a trust fund held by it in a trustee capacity. The Foundation shall have the ultimate authority and control over all property in the Fund, and the income derived therefrom, in accordance with the Restated Certificate of Formation dated March 24, 2015 and Section 4.3 of the Bylaws dated June 15, 2015 (collectively the “Governing Instruments”), and all amendments and policies adopted by the Board of Governors of the Foundation under the authority of the Governing Instruments.
Control of the Fund. It may be difficult to predict the trading patterns of preferred shares, including the effective costs of trading. There is a risk that the market for preferred shares may be thinly traded and relatively illiquid compared to the market for other types of securities. Senior Leverage Risk. Preferred shares will be junior in liquidation and with respect to distribution rights to debt securities and any other borrowings. Senior securities representing indebtedness may constitute a substantial lien and burden on preferred shares by reason of their prior claim against our income and against our net assets in liquidation. We may not be permitted to declare dividends or other distributions with respect to any series of preferred shares unless at such time we meet applicable asset coverage requirements and the payment of principal or interest is not in default with respect to any borrowings.
Control of the Fund. It may be difficult to predict the trading patterns of preferred shares, including the effective costs of trading. There is a risk that the market for preferred shares may be thinly traded and relatively illiquid compared to the market for other types of securities. Senior Leverage Risk. Preferred shares will be junior in liquidation and with respect to distribution rights to debt securities and any other borrowings. Senior securities representing indebtedness may constitute a substantial lien and burden on preferred shares by reason of their prior claim against our income and against our net assets in liquidation. We may not be permitted to declare dividends or other distributions with respect to any series of preferred shares unless at such time we meet applicable asset coverage requirements and the payment of principal or interest is not in default with respect to any borrowings. See “Risk Factors — Additional Risks to Senior Security Holders” for a more detailed discussion of these risks. SUMMARY OF FUND EXPENSES The following table and example contain information about the costs and expenses that common shareholders will bear directly or indirectly. In accordance with Commission requirements, the table below shows our expenses, including interest payments on borrowed funds, and preferred stock dividend payments, as a percentage of our average net assets as of March 31, 2021, and not as a percentage of gross assets or managed assets. By showing expenses as a percentage of average net assets, expenses are not expressed as a percentage of all of the assets we invest. The table and example are based on our capital structure as of March 31, 2021. As of March 31, 2021, the Fund had utilized $830 million of the $830 million available under the SSB Agreement3 ($67 million in borrowings outstanding and $763 million in structural leverage consisting of collateral received from SSB in connection with securities on loan), representing 22.8% of the Fund’s managed assets as of that date, and had $242 million in MRP Xxxxxx outstanding, representing 6.6% of the Fund’s managed assets Combined, the borrowings under the SSB Agreement and the outstanding MRP Xxxxxx represented 29.4% of the Fund’s managed assets. Shareholder Transaction Expenses Sales Load (as a percentage of offering price) —(1) Offering Expenses Borne by the Fund (as a percentage of offering price) —(1) Dividend Reinvestment Plan Fees (per sales transaction fee)(2) $ 15.00 Annual Expenses Percentage of ...
