(a) |
Following is a copy of the semi-annual report transmitted to stockholders pursuant to Rule 30e-1 under the Act.
|
TICKER SYMBOL
|
|
Real Estate Securities Income
Fund Inc.
|
NRO
|
SECTOR ALLOCATION
|
|
(as a % of Total Investments*)
|
|
Apartments
|
6.3
%
|
Data Centers
|
3.7
|
Diversified
|
9.3
|
Free Standing
|
4.2
|
Health Care
|
6.4
|
Industrial
|
6.2
|
Infrastructure REITs
|
9.3
|
Lodging/Resorts
|
6.1
|
Manufactured Homes
|
2.8
|
Mortgage Commercial Financing
|
3.7
|
Mortgage Home Financing
|
3.0
|
Office
|
5.3
|
Regional Malls
|
4.1
|
Self Storage
|
8.2
|
Shopping Centers
|
8.0
|
Single Family Homes
|
3.8
|
Specialty
|
4.1
|
Short-Term Investments
|
5.5
|
Total
|
100.0
%
|
*
|
Does not include the impact of the Fund’s
open positions in derivatives, if any.
|
PERFORMANCE HIGHLIGHTS
|
||||||
|
Inception
Date
|
Six Month
Period
Ended
04/30/2023
|
Average Annual Total Return
Ended 04/30/2023
|
|||
|
1 Year
|
5 Years
|
10 Years
|
Life of Fund
|
||
At NAV1
|
|
|
|
|
|
|
Real Estate
Securities
Income
Fund Inc.
|
10/28/2003
|
7.02%
|
-18.51%
|
2.51%
|
2.93%
|
3.38%
|
At Market
Price2
|
|
|
|
|
|
|
Real Estate
Securities
Income
Fund Inc.
|
10/28/2003
|
-5.87%
|
-28.72%
|
0.63%
|
2.69%
|
2.40%
|
Index
|
|
|
|
|
|
|
FTSE Nareit
All Equity
REITs Index3
|
|
2.79%
|
-16.09%
|
6.20%
|
5.83%
|
8.49%
|
1
|
Returns based on the NAV of the Fund.
|
2
|
Returns based on the market price of shares of the Fund’s common stock on the NYSE American.
|
3
|
The FTSE Nareit All Equity REITs Index is a free float-adjusted, market capitalization-weighted
index that
tracks the performance of U.S. equity real estate investment trusts (REITs) that are listed on
the New York
Stock Exchange or NASDAQ. Equity REITs include all tax qualified REITs with more than 50% of
total assets
in qualifying real estate assets other than mortgages secured by real property that also meet
minimum size
and liquidity criteria. Please note that the index does not take into account any fees and
expenses or any
tax consequences of investing in the individual securities that it tracks and that individuals
cannot invest
directly in any index. Data about the performance of this index are prepared or obtained by NBIA
and
include reinvestment of all income dividends and other distributions, if any. The Fund may
invest in
securities not included in the index and generally does not invest in all securities included in
the index.
|
Other Abbreviations:
|
|
Management or NBIA
|
= Neuberger Berman Investment Advisers LLC
|
Number of Shares
|
Value
|
|
Common Stocks 84.2%
|
||
Apartments 8.6%
|
||
128,015
|
Apartment Income REIT Corp.
|
$4,733,995(a
)
|
83,290
|
Equity Residential
|
5,268,092
(a)
|
18,572
|
Essex Property Trust, Inc.
|
4,080,826
(a)
|
|
|
14,082,913
|
Data Centers 4.0%
|
||
42,236
|
Digital Realty Trust, Inc.
|
4,187,699
(a)
|
3,288
|
Equinix, Inc.
|
2,380,775
(a)
|
|
|
6,568,474
|
Diversified 1.6%
|
||
35,600
|
WP Carey, Inc.
|
2,641,520
|
Free Standing 2.7%
|
||
68,724
|
Realty Income Corp.
|
4,318,616
(a)
|
Health Care 8.9%
|
||
139,378
|
Omega Healthcare Investors, Inc.
|
3,729,756
(a)
|
79,984
|
Ventas, Inc.
|
3,843,231
(a)
|
86,564
|
Welltower, Inc.
|
6,857,600
(a)
|
|
|
14,430,587
|
Industrial 8.6%
|
||
91,719
|
Prologis, Inc.
|
11,487,805
(a)
|
74,533
|
STAG Industrial, Inc.
|
2,524,432
(a)
|
|
|
14,012,237
|
Infrastructure REITs 12.7%
|
||
56,976
|
American Tower Corp.
|
11,645,325
(a)
|
74,315
|
Crown Castle, Inc.
|
9,147,433
(a)
|
|
|
20,792,758
|
Manufactured Homes 3.9%
|
||
50,316
|
Equity LifeStyle Properties, Inc.
|
3,466,772
|
21,118
|
Sun Communities, Inc.
|
2,933,924
(a)
|
|
|
6,400,696
|
Mortgage Commercial Financing 4.8%
|
||
182,043
|
Blackstone Mortgage Trust, Inc. Class A
|
3,320,464
(a)
|
252,347
|
Starwood Property Trust, Inc.
|
4,514,488
(a)
|
|
|
7,834,952
|
Mortgage Home Financing 4.1%
|
||
308,541
|
AGNC Investment Corp.
|
3,057,641
(a)
|
182,510
|
Annaly Capital Management, Inc.
|
3,646,550
(a)
|
|
|
6,704,191
|
Office 1.3%
|
||
91,679
|
Highwoods Properties, Inc.
|
2,101,283
|
Regional Malls 5.6%
|
||
80,260
|
Simon Property Group, Inc.
|
9,095,063
(a)
|
Number of Shares
|
Value
|
|
Self Storage 3.5%
|
||
19,493
|
Public Storage
|
$5,747,121(a
)
|
Shopping Centers 5.9%
|
||
161,017
|
Kimco Realty Corp.
|
3,089,916
(a)
|
333,399
|
Tanger Factory Outlet Centers, Inc.
|
6,537,955
(a)
|
|
|
9,627,871
|
Single Family Homes 2.7%
|
||
47,463
|
American Homes 4 Rent Class A
|
1,578,620
(a)
|
84,306
|
Invitation Homes, Inc.
|
2,813,291
(a)
|
|
|
4,391,911
|
Specialty 5.3%
|
||
76,757
|
Iron Mountain, Inc.
|
4,240,057
(a)
|
127,673
|
VICI Properties, Inc.
|
4,333,221
|
|
|
8,573,278
|
|
||
Total Common Stocks (Cost $136,224,730)
|
137,323,471
|
|
Preferred Stocks 44.4%
|
||
Data Centers 1.1%
|
||
78,449
|
Digital Realty Trust, Inc., Series L, 5.20%
|
1,747,844
(a)(b)
|
Diversified 1.8%
|
||
50,000
|
Armada Hoffler Properties, Inc., Series A, 6.75%
|
1,114,000
(a)(b)
|
80,155
|
Gladstone Commercial Corp., Series G, 6.00%
|
1,223,165
(b)
|
29,000
|
Global Net Lease, Inc., Series A, 7.25%
|
642,350
(b)
|
|
|
2,979,515
|
Free Standing 3.1%
|
||
170,800
|
Agree Realty Corp., Series A, 4.25%
|
3,267,404
(b)
|
74,615
|
Spirit Realty Capital, Inc., Series A, 6.00%
|
1,790,760
(a)(b)
|
|
|
5,058,164
|
Lodging/Resorts 8.4%
|
||
118,000
|
Ashford Hospitality Trust, Inc., Series G, 7.38%
|
1,977,456
(b)
|
174,400
|
Chatham Lodging Trust, Series A, 6.63%
|
3,803,664
(a)(b)
|
9,500
|
DiamondRock Hospitality Co., Series A, 8.25%
|
249,565
(a)(b)
|
72,021
|
Hersha Hospitality Trust, Series C, 6.88%
|
1,410,891
(a)(b)
|
33,755
|
Hersha Hospitality Trust, Series D, 6.50%
|
656,197
(a)(b)
|
131,250
|
Hersha Hospitality Trust, Series E, 6.50%
|
2,651,250
(a)(b)
|
10,000
|
Pebblebrook Hotel Trust, Series H, 5.70%
|
177,100
(a)(b)
|
45,620
|
Summit Hotel Properties, Inc., Series E, 6.25%
|
873,623
(a)(b)
|
36,990
|
Summit Hotel Properties, Inc., Series F, 5.88%
|
689,494
(b)
|
33,000
|
Sunstone Hotel Investors, Inc., Series H, 6.13%
|
728,640
(b)
|
20,000
|
Sunstone Hotel Investors, Inc., Series I, 5.70%
|
401,800
(b)
|
|
|
13,619,680
|
Mortgage Commercial Financing 0.3%
|
||
30,000
|
KKR Real Estate Finance Trust, Inc., Series A, 6.50%
|
487,800
(a)(b)
|
Office 6.1%
|
||
6,000
|
Highwoods Properties, Inc., Series A, 8.63%
|
6,805,011
(b)(c)(d)
|
8,283
|
SL Green Realty Corp., Series I, 6.50%
|
152,490
(b)
|
30,000
|
Vornado Realty Trust, Series L, 5.40%
|
399,600
(b)
|
Number of Shares
|
Value
|
|
Office – cont'd
|
||
107,100
|
Vornado Realty Trust, Series M, 5.25%
|
$1,350,531(b
)
|
92,925
|
Vornado Realty Trust, Series N, 5.25%
|
1,130,897
(a)(b)
|
9,143
|
Vornado Realty Trust, Series O, 4.45%
|
100,299
(b)
|
|
|
9,938,828
|
Real Estate Management & Development 8.0%
|
||
50,000
|
Brookfield Property Partners LP, Series A, 5.75%
|
625,000
(b)
|
35,581
|
DigitalBridge Group, Inc., Series H, 7.13%
|
737,950
(a)(b)
|
348,616
|
DigitalBridge Group, Inc., Series I, 7.15%
|
7,146,628
(b)
|
218,350
|
DigitalBridge Group, Inc., Series J, 7.13%
|
4,504,560
(b)
|
|
|
13,014,138
|
Regional Malls 0.0%
|
||
46,942
|
Pennsylvania Real Estate Investment Trust, Series C, 7.20%
|
53,748
*(b)
|
Self Storage 7.7%
|
||
31,050
|
Public Storage, Series H, 5.60%
|
795,501
(b)
|
18,000
|
Public Storage, Series I, 4.88%
|
413,640
(b)
|
33,176
|
Public Storage, Series J, 4.70%
|
723,900
(a)(b)
|
102,000
|
Public Storage, Series K, 4.75%
|
2,241,960
(a)(b)
|
80,793
|
Public Storage, Series L, 4.63%
|
1,758,864
(a)(b)
|
31,700
|
Public Storage, Series M, 4.13%
|
613,395
(a)(b)
|
25,000
|
Public Storage, Series O, 3.90%
|
467,750
(a)(b)
|
118,790
|
Public Storage, Series P, 4.00%
|
2,293,835
(a)(b)
|
19,775
|
Public Storage, Series Q, 3.95%
|
363,860
(b)
|
154,200
|
Public Storage, Series S, 4.10%
|
2,962,182
(a)(b)
|
|
|
12,634,887
|
Shopping Centers 5.0%
|
||
39,331
|
Cedar Realty Trust, Inc., Series C, 6.50%
|
462,926
(a)(b)
|
55,600
|
Federal Realty Investment Trust, Series C, 5.00%
|
1,225,424
(b)
|
23,369
|
Kimco Realty Corp., Series L, 5.13%
|
530,009
(b)
|
50,425
|
Kimco Realty Corp., Series M, 5.25%
|
1,153,724
(a)(b)
|
58,523
|
Saul Centers, Inc., Series E, 6.00%
|
1,294,529
(a)(b)
|
42,945
|
SITE Centers Corp., Series A, 6.38%
|
1,045,281
(a)(b)
|
122,250
|
Urstadt Biddle Properties, Inc., Series K, 5.88%
|
2,518,350
(a)(b)
|
|
|
8,230,243
|
Single Family Homes 2.5%
|
||
165,620
|
American Homes 4 Rent, Series G, 5.88%
|
4,037,816
(a)(b)
|
Specialty 0.4%
|
||
36,008
|
EPR Properties, Series G, 5.75%
|
705,757
(a)(b)
|
Total Preferred Stocks (Cost $89,340,331)
|
72,508,420
|
|
Number of Units
|
|
|
Master Limited Partnerships and Limited Partnerships 1.3%
|
||
Real Estate Management & Development 1.3%
|
||
144,036
|
Brookfield Property Preferred LP, 6.25% (Cost $3,411,169)
|
2,163,421
|
Number of Shares
|
Value
|
|
|
||
|
||
Short-Term Investments 7.5%
|
||
Investment Companies 7.5%
|
||
12,324,868
|
State Street Institutional U.S. Government Money Market Fund Premier Class,
4.76%(e)
(Cost $12,324,868)
|
$12,324,868
|
Total Investments 137.4% (Cost $241,301,098)
|
224,320,180
|
|
Liabilities Less Other Assets (37.4)%
|
(61,084,190
)
|
|
Net Assets Applicable to Common Stockholders 100.0%
|
$163,235,990
|
*
|
Non-income producing security.
|
(a)
|
All or a portion of this security is pledged with the custodian in connection with the Fund's
loans payable
outstanding.
|
(b)
|
Perpetual security. Perpetual securities have no stated maturity date, but they may be
called/redeemed by
the issuer.
|
(c)
|
Value determined using significant unobservable inputs.
|
(d)
|
Security fair valued as of April 30, 2023 in accordance with procedures approved by the
valuation designee.
Total value of all such securities at April 30, 2023 amounted to $6,805,011, which represents
4.2% of net
assets applicable to common stockholders of the Fund.
|
(e)
|
Represents 7-day effective yield as of April 30, 2023.
|
Asset Valuation Inputs
|
Level 1
|
Level 2
|
Level 3(a)
|
Total
|
Investments:
|
|
|
|
|
Common Stocks#
|
$137,323,471
|
$—
|
$—
|
$137,323,471
|
Preferred Stocks
|
|
|
|
|
Office
|
3,133,817
|
—
|
6,805,011
|
9,938,828
|
Other Preferred Stocks#
|
62,569,592
|
—
|
—
|
62,569,592
|
Total Preferred Stocks
|
65,703,409
|
—
|
6,805,011
|
72,508,420
|
Master Limited Partnerships and Limited Partnerships#
|
2,163,421
|
—
|
—
|
2,163,421
|
Short-Term Investments
|
—
|
12,324,868
|
—
|
12,324,868
|
Total Investments
|
$205,190,301
|
$12,324,868
|
$6,805,011
|
$224,320,180
|
#
|
The Schedule of Investments provides information on the industry or sector categorization.
|
(a)
|
The following is a reconciliation between the beginning and ending balances of investments in
which
unobservable inputs (Level 3) were used in determining value:
|
Investment type
|
Fair value
at
4/30/2023
|
Valuation
approach
|
Unobservable
input(s)
|
Input value/
range
|
Weighted
average(a)
|
Impact to
valuation
from
increase
in input(b)
|
Preferred Stock
|
$6,805,011
|
Income Approach
|
Yield Spread
|
1.08%
|
1.08%
|
Decrease
|
(a) The weighted averages disclosed in the table above were weighted by relative fair value.
|
||||||
(b) Represents the expected directional change in the fair value of the Level 3 investments that
would result from an increase or decrease in the corresponding input.
Significant changes in
these inputs could result in significantly higher or lower fair value
measurements.
|
|
Real Estate
Securities Income
Fund Inc.
|
|
April 30, 2023
|
Assets
|
|
Investments in securities, at value* (Note
A)—see Schedule of Investments:
|
|
Unaffiliated issuers(a)
|
$224,320,180
|
Dividends and interest receivable
|
302,175
|
Receivable for securities sold
|
1,154,235
|
Prepaid expenses and other assets
|
3,308
|
Total Assets
|
225,779,898
|
Liabilities
|
|
Loans payable (Note A)
|
60,000,000
|
Distributions payable—common stock
|
62,036
|
Payable to investment manager (Note B)
|
108,622
|
Payable for securities purchased
|
2,068,058
|
Payable to administrator (Note B)
|
45,259
|
Payable to directors
|
1,571
|
Interest payable (Note A)
|
160,529
|
Other accrued expenses and payables
|
97,833
|
Total Liabilities
|
62,543,908
|
Net Assets applicable to Common Stockholders
|
$163,235,990
|
Net Assets applicable to Common Stockholders consist of:
|
|
Paid-in capital—common stock
|
$212,075,129
|
Total distributable earnings/(losses)
|
(48,839,139
)
|
Net Assets applicable to Common Stockholders
|
$163,235,990
|
Shares of Common Stock Outstanding ($0.0001 par value; 999,978,880 shares
authorized)
|
47,455,806
|
Net Asset Value Per Share of Common Stock Outstanding
|
$3.44
|
*Cost of Investments:
|
|
(a) Unaffiliated issuers
|
$241,301,098
|
|
|
Real Estate
Securities Income
Fund Inc.
|
|
For the Six
Months Ended
April 30,
2023
|
Investment Income:
|
|
Income (Note A):
|
|
Dividend income—unaffiliated issuers
|
$6,417,864
|
Interest and other income—unaffiliated issuers
|
126,647
|
Foreign taxes withheld
|
(2,708
)
|
Total income
|
$6,541,803
|
Expenses:
|
|
Investment management fees (Note B)
|
676,325
|
Administration fees (Note B)
|
281,802
|
Audit fees
|
24,489
|
Custodian and accounting fees
|
29,510
|
Insurance
|
3,726
|
Legal fees
|
46,992
|
Stockholder reports
|
28,906
|
Stock exchange listing fees
|
4,223
|
Stock transfer agent fees
|
7,829
|
Directors' fees and expenses
|
21,090
|
Interest
|
1,227,234
|
Miscellaneous and other fees
|
9,509
|
Total expenses
|
2,361,635
|
Net investment income/(loss)
|
$4,180,168
|
Realized and Unrealized Gain/(Loss) on Investments (Note A):
|
|
Net realized gain/(loss) on:
|
|
Transactions in investment securities of unaffiliated issuers
|
(7,984,917
)
|
Change in net unrealized appreciation/(depreciation) in value of:
|
|
Investment securities of unaffiliated issuers
|
14,798,957
|
Net gain/(loss) on investments
|
6,814,040
|
Net increase/(decrease) in net assets applicable to Common Stockholders resulting from
operations
|
$10,994,208
|
|
Real Estate Securities
Income Fund Inc.
|
|
|
Six Months Ended
|
Fiscal Year Ended
|
|
April 30, 2023
(Unaudited)
|
October 31, 2022
|
Increase/(Decrease) in Net Assets Applicable to Common Stockholders:
|
|
|
From Operations (Note A):
|
|
|
Net investment income/(loss)
|
$4,180,168
|
$4,229,355
|
Net realized gain/(loss) on investments
|
(7,984,917
)
|
5,661,644
|
Change in net unrealized appreciation/(depreciation) of investments
|
14,798,957
|
(80,085,703
)
|
Net increase/(decrease) in net assets applicable to Common Stockholders resulting from
operations
|
10,994,208
|
(70,194,704
)
|
Distributions to Common Stockholders From (Note A):
|
|
|
Distributable earnings
|
(8,883,727
)
|
(5,899,759
)
|
Tax return of capital
|
—
|
(11,864,748
)
|
Total distributions to Common Stockholders
|
(8,883,727
)
|
(17,764,507
)
|
From Capital Share Transactions (Note D):
|
|
|
Proceeds from reinvestment of dividends and distributions
|
—
|
61,655
|
Net Increase/(Decrease) in Net Assets Applicable to Common Stockholders
|
2,110,481
|
(87,897,556
)
|
Net Assets Applicable to Common Stockholders:
|
|
|
Beginning of period
|
161,125,509
|
249,023,065
|
End of period
|
$163,235,990
|
$161,125,509
|
|
Real Estate
Securities Income
Fund Inc.
|
|
For the
Six Months Ended
April 30, 2023
|
Increase/(Decrease) in cash:
|
|
Cash flows from operating activities:
|
|
Net increase in net assets applicable to Common Stockholders resulting from operations
|
$10,994,208
|
Adjustments to reconcile net increase in net assets applicable to Common Stockholders
resulting from
operations to net cash provided by operating activities:
|
|
Changes in assets and liabilities:
|
|
Purchase of investment securities
|
(7,180,938
)
|
Proceeds from disposition of investment securities
|
21,240,977
|
Purchase/sale of short-term investment securities, net
|
(10,406,699
)
|
Increase in dividends and interest receivable
|
(42,462
)
|
Decrease in prepaid expenses and other assets
|
2,360
|
Increase in receivable for securities sold
|
(968,552
)
|
Increase in payable for securities purchased
|
2,068,058
|
Increase in interest payable
|
65,207
|
Decrease in payable to investment manager
|
(8,147
)
|
Decrease in payable to directors
|
(11,680
)
|
Decrease in payable to administrator
|
(3,395
)
|
Decrease in other accrued expenses and payables
|
(50,896
)
|
Unrealized appreciation on investment securities of unaffiliated issuers
|
(14,798,957
)
|
Net realized loss from transactions in investment securities of unaffiliated issuers
|
7,984,917
|
Net cash provided by (used in) operating activities
|
$8,884,001
|
Cash flows from financing activities:
|
|
Cash distributions paid on common stock
|
(8,884,001
)
|
Net increase/(decrease) in cash
|
—
|
Cash:
|
|
Cash and restricted cash at beginning of period
|
—
|
Cash and restricted cash at end of period
|
$—
|
Supplemental disclosure
|
|
Cash paid for interest
|
$1,162,027
|
|
Paid-in Capital
|
Total Distributable
Earnings/(Losses)
|
|
$(1,775,394
)
|
$1,775,394
|
|
Distributions Paid From:
|
|||||||
|
Ordinary
Income
|
Long-Term Capital Gain
|
Return of Capital
|
Total
|
||||
|
2022
|
2021
|
2022
|
2021
|
2022
|
2021
|
2022
|
2021
|
|
$5,899,759
|
$6,978,362
|
$—
|
$—
|
$11,864,748
|
$11,612,787
|
$17,764,507
|
$18,591,149
|
|
|
|
|
|
|
|
|
|
|
Undistributed
Ordinary
Income
|
Undistributed
Long-Term
Capital Gain
|
Unrealized
Appreciation/
(Depreciation)
|
Loss
Carryforwards
and Deferrals
|
Other
Temporary
Differences
|
Total
|
|
$—
|
$—
|
$(35,968,534
)
|
$(14,918,776
)
|
$(62,310
)
|
$(50,949,620
)
|
Capital Loss Carryforwards
|
|
Long-Term
|
Short-Term
|
$12,174,088
|
$2,744,688
|
For the Six Months Ended April 30, 2023
|
For the Year Ended October 31, 2022
|
||
Stock Issued on
Reinvestment of
Dividends
and Distributions
|
Net Increase/
(Decrease)
In Common Stock
Outstanding
|
Stock Issued on
Reinvestment of
Dividends
and Distributions
|
Net Increase/
(Decrease)
In Common Stock
Outstanding
|
—
|
—
|
13,492
|
13,492
|
|
Six Months
Ended April 30,
|
Year Ended October 31,
|
||||
|
2023
(Unaudited)
|
2022
|
2021
|
2020
|
2019
|
2018
|
Common Stock Net Asset Value, Beginning of
Period
|
$3.40
|
$5.25
|
$3.89
|
$5.88
|
$5.06
|
$5.80
|
Income/(Loss) From Investment Operations
Applicable to Common Stockholders:
|
|
|
|
|
|
|
Net Investment Income/(Loss)a
|
0.09
|
0.09
|
0.13
|
0.11
|
0.22
|
0.15
|
Net Gains or (Losses) on Securities (both realized and
unrealized)
|
0.14
|
(1.57
)
|
1.62
|
(1.62
)
|
1.08
|
(0.35
)
|
Total From Investment Operations Applicable to
Common Stockholders
|
0.23
|
(1.48
)
|
1.75
|
(1.51
)
|
1.30
|
(0.20
)
|
Less Distributions to Common Stockholders From:
|
|
|
|
|
|
|
Net Investment Income
|
(0.19
)
|
(0.12
)
|
(0.15
)
|
(0.15
)
|
(0.21
)
|
(0.21
)
|
Tax Return of Capital
|
—
|
(0.25
)
|
(0.24
)
|
(0.33
)
|
(0.27
)
|
(0.33
)
|
Total Distributions to Common Stockholders
|
(0.19
)
|
(0.37
)
|
(0.39
)
|
(0.48
)
|
(0.48
)
|
(0.54
)
|
Common Stock Net Asset Value, End of Period
|
$3.44
|
$3.40
|
$5.25
|
$3.89
|
$5.88
|
$5.06
|
Common Stock Market Value, End of Period
|
$2.99
|
$3.36
|
$5.02
|
$3.70
|
$5.58
|
$4.69
|
Total Return, Common Stock Net Asset Valueb
|
7.02
%c
|
(29.49
)%
|
46.70
%d
|
(25.65
)%
|
27.80
%
|
(2.90
)%
|
Total Return, Common Stock Market Valueb
|
(5.87
)%c
|
(27.12
)%
|
47.48
%d
|
(25.48
)%
|
30.85
%
|
(5.60
)%
|
Supplemental Data/Ratios
|
|
|
|
|
|
|
Net Assets Applicable to Common Stockholders, End
of Period (in millions)
|
$163.2
|
$161.1
|
$249.0
|
$184.5
|
$278.8
|
$240.1
|
Ratios are Calculated Using Average Net Assets
Applicable to Common Stockholders
|
|
|
|
|
|
|
Ratio of Gross Expensese
|
2.85
%f
|
2.06
%
|
1.69
%
|
2.16
%
|
2.75
%
|
2.91
%
|
Ratio of Net Expensese
|
2.85
%f
|
2.06
%
|
1.69
%
|
2.16
%
|
2.75
%
|
2.91
%
|
Ratio of Net Investment Income/(Loss)
|
5.04
%f
|
1.94
%
|
2.61
%
|
2.40
%
|
4.12
%
|
2.88
%
|
Portfolio Turnover Rate
|
3
%c
|
27
%
|
22
%
|
21
%
|
3
%
|
12
%
|
Loans Payable (in millions)
|
$60.0
|
$60.0
|
$70.0
|
$45.0
|
$100.0
|
$100.0g
|
Asset Coverage Per $1,000 of Loans Payableh
|
$3,723
|
$3,687
|
$4,559
|
$5,103
|
$3,788
|
$3,402
|
|
a
|
Calculated based on the average number of shares of common stock outstanding during each
fiscal period.
|
b
|
Total return based on per share NAV reflects the effects of changes in NAV on the performance
of the Fund
during each fiscal period. Total return based on per share market value assumes the purchase
of shares of
common stock at the market price on the first day and sale of common stock at the market price
on the last
day of the period indicated. Distributions, if any, are assumed to be reinvested at prices
obtained under the
Fund's distribution reinvestment plan. Results represent past performance and do not indicate
future results.
Current returns may be lower or higher than the performance data quoted. Investment returns
will
fluctuate and shares of common stock, when sold, may be worth more or less than original cost.
|
c
|
Not annualized.
|
d
|
Had the Fund not received class action proceeds in 2021, total return based on per share NAV
for the year
ended October 31, 2021 would have been 45.59%.
|
e
|
Interest expense is included in expense ratios. The annualized ratios of interest expense to
average net
assets applicable to common stockholders were:
|
Six Months
Ended April 30, 2023
|
Year Ended October 31,
|
||||
|
2022
|
2021
|
2020
|
2019
|
2018
|
1.48%
|
0.76%
|
0.48%
|
0.92%
|
1.39%
|
1.51%
|
f
|
Annualized.
|
g
|
Net of unamortized deferred issuance costs. The unamortized deferred issuance costs for the
year ended
October 31, 2018 were $30,482.
|
h
|
Calculated by subtracting the Fund’s total liabilities (excluding loans payable and
accumulated unpaid
interest on loans payable) from the Fund’s total assets and dividing by the outstanding loans
payable
balance.
|
FACTS
|
WHAT DOES NEUBERGER BERMAN
DO WITH YOUR PERSONAL INFORMATION?
|
Why?
|
Financial companies choose how they share your personal information.
Federal law
gives consumers the right to limit some but not all sharing. Federal law
also requires
us to tell you how we collect, share, and protect your personal
information. Please
read this notice carefully to understand what we do.
|
What?
|
The types of personal information we collect and share depend on the
product or
service you have with us. This information can include:
◾ Social Security numbers, dates of birth and other numerical identifiers
◾ Names and addresses
◾ Driver’s licenses, passports and other identification documents
◾ Usernames and passwords
◾ Internet protocol addresses and other network activity information
◾ Income, credit history, credit scores, assets, transaction history and other
financial information
When you are no longer our customer, we continue to share
your information as
described in this notice.
|
How?
|
All financial companies need to share customers’ personal information to
run their
everyday business. In the section below, we list the reasons financial
companies can
share their customers’ personal information; the reasons Neuberger Berman
chooses to share; and whether you can limit this sharing.
|
Reasons we can share your personal information
|
Does Neuberger
Berman share?
|
Can you limit this sharing?
|
For our everyday business purposes—
such as to process your transactions, maintain your
account(s), respond to court orders and legal
investigations, or report to credit bureaus
|
Yes
|
No
|
For our marketing purposes—
to offer our products and services to you
|
Yes
|
No
|
For joint marketing with other financial
companies
|
No
|
We don’t share
|
For our affiliates’ everyday business purposes—
information about your transactions and
experiences
|
Yes
|
No
|
For our affiliates’ everyday business purposes—
information about your creditworthiness
|
No
|
We don’t share
|
For nonaffiliates to market to you
|
No
|
We don’t share
|
Questions?
|
Call 646.497.4003 or 866.483.1046 (toll-free)
Email NBPrivacyOfficer@nb.com
|
Who we are
|
|
Who is providing this notice?
|
Entities within the Neuberger Berman family of companies,
mutual funds, and private investment funds.
|
What we do
|
|
How does Neuberger Berman
protect my personal information?
|
To protect your personal information from unauthorized access
and use, we use security measures that comply with federal law.
These measures include physical, electronic and procedural
safeguards, including secured files and buildings.
We restrict access to customer information to those employees
who need to know such information in order to perform their job
responsibilities.
|
How does Neuberger Berman
collect my personal information?
|
We collect your personal information directly from you or your
representatives, for example, when you
◾ seek advice about your investments
◾ give us your contact or income information
◾ provide account information or open an account
◾ direct us to buy or sell securities, or complete other
transactions
◾ visit one of our websites, portals or other online locations
We may also collect your personal information from others, such
as credit bureaus, affiliates, or other companies.
|
Why can’t I limit all sharing?
|
Federal law gives you the right to limit only
◾ sharing for affiliates’ everyday business
purposes—information about your creditworthiness
◾ affiliates from using your information to market to you
◾ sharing for nonaffiliates to market to you
State laws and individual companies may give you additional
rights to limit sharing.
|
Definitions
|
|
Affiliates
|
Companies related by common ownership or control. They can
be financial and nonfinancial companies.
◾ Our affiliates include companies with a Neuberger Berman
name; financial companies, such as investment
advisers or
broker dealers; mutual funds, and private investment
funds.
|
Nonaffiliates
|
Companies not related by common ownership or control. They
can be financial and nonfinancial companies.
◾ Nonaffiliates we share with can include companies that
perform administrative services on our behalf (such
as
vendors that provide data processing, transaction
processing,
and printing services) or other companies such as
brokers,
dealers, or counterparties in connection with
servicing your
account.
|
Joint marketing
|
A formal agreement between nonaffiliated financial companies
that together market financial products or services to you.
◾ Neuberger Berman doesn’t jointly market.
|
(b) |
Not applicable to the Registrant.
|
(a)
|
The complete schedule of investments for the Registrant is disclosed in the Registrant’s semi-annual report, which is included in Item 1 of this
Form N-CSR.
|
(b)
|
Not applicable to the Registrant.
|
(a)
|
Not applicable to semi-annual reports on Form N-CSR.
|
(b)
|
There have been no changes in any of the Portfolio Managers since the Registrant’s most recent annual report on Form N-CSR.
|
(a) |
Based on an evaluation of the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) as of a date within 90 days of the filing date of this report, the Chief Executive
Officer and President and the 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 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 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) |
The Fund did not engage in any securities lending activity during its most recent fiscal year.
|
(b) |
The Fund did not engage in any securities lending activity and no services were provided by the securities lending agent to the Fund during its most recent fiscal year.
|
(a)(1) |
A copy of the Code of Ethics is filed herewith.
|
(a)(2) |
(a)(3) |
Not applicable to the Registrant.
|
(a)(4) |
Not applicable to the Registrant.
|
(b) |
By: |
/s/ Joseph V. Amato |
|
|
Joseph V. Amato |
|
|
Chief Executive Officer and President |
|
|
|
|
By: |
/s/ Joseph V. Amato |
|
|
Joseph V. Amato |
|
|
Chief Executive Officer and President |
|
|
|
|
By: |
/s/ John M. McGovern |
|
|
John M. McGovern |
|
|
Treasurer and Principal Financial |
|
|
and Accounting Officer |
|
I. |
Covered Officers/Purpose of the Code
|
◾
|
honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
|
◾
|
full, fair, accurate, timely and understandable disclosure in reports and documents that a Company files with, or submits to, the Securities and Exchange
Commission (“SEC”) and in other public communications made by the Company;
|
◾
|
compliance with applicable laws and governmental rules and regulations;
|
◾
|
the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and
|
◾
|
accountability for adherence to the Code.
|
II. |
Covered Officers Should Handle Ethically Actual, Potential and Apparent Conflicts of Interest
|
◾
|
use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Company, as for example
where the Covered Officer would benefit personally to the detriment of the Company;
|
◾
|
cause the Company to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit the Company;
|
◾
|
retaliate against any other Covered Officer, or any employee of a Company, its service providers, or the affiliated persons of any of them, for good faith
reports of potential violations of this Code.
|
◾
|
service as a director on the board of any public or private company, other than the Companies, their investment adviser, and its affiliates;
|
◾
|
the receipt of any non-nominal gifts, i.e., those in excess of $100;
|
◾
|
the receipt of any entertainment from any company with which the Company has current or prospective business dealings unless such entertainment is
business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;
|
◾
|
any ownership interest in, or any consulting or employment relationship with, any of the Company’s service providers, other than its investment adviser or any
affiliated person thereof; and
|
◾
|
a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Company for effecting portfolio transactions or for selling
or redeeming shares other than an interest arising from the Covered Officer’s employment, such as compensation or equity ownership.
|
III. |
Disclosure and Compliance
|
◾
|
Each Covered Officer must familiarize himself or herself with the disclosure requirements generally applicable to the Company and the Company’s Disclosure
Controls and Procedures;
|
◾
|
each Covered Officer must not knowingly misrepresent, or cause others to misrepresent, facts about the Company to others, whether within or outside the Company,
including to the Company’s trustees/directors and auditors, and to governmental regulators and self-regulatory organizations;
|
◾
|
each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Companies
|
and the adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Companies file with, or
submit to, the SEC and in other public communications made by the Companies; and
|
◾
|
each Covered Officer should promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.
|
IV. |
Reporting and Accountability
|
◾
|
upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he or she has received, read, and
understands the Code;
|
◾
|
annually thereafter affirm to the Board that he or she has complied with the requirements of the Code;
|
◾
|
report on the Company’s Questionnaire for Trustees/Directors and Officers, where responsive to appropriate questions, all categories of affiliations or other
relationships giving rise to actual or potential conflicts of interest; and
|
◾
|
notify the Chief Legal Officer promptly if he or she is aware of facts and circumstances that he or she knows are a violation of this Code. Failure to do so is
itself a violation of this Code.
|
◾
|
The Chief Legal Officer will take all appropriate action to investigate any potential violations reported to him or her.
|
◾
|
The Chief Legal Officer will report to the Committee the outcome of the investigation, including the facts of the initial report, the scope and outcome
|
2 |
The Chief Legal Officer is authorized to consult, as appropriate, with counsel to the Company and counsel to the Independent Trustees/Directors, and is encouraged to do so.
|
3 |
Item 2 of Form N-CSR defines “waiver” as “the approval by the registrant of a material departure from a provision of the code of ethics” and “implicit waiver” as “the registrant’s
failure to take action within a reasonable period of time regarding a material departure from a provision of the code of ethics that has been made known to an executive officer” of the registrant. Both waivers and implicit waivers must be
disclosed publicly.
|
|
of the investigation, and whether or not the Chief Legal Officer believes that a violation occurred.
|
◾
|
The person who initially reported the matter will be informed that the matter has been investigated and reported to the Committee.
|
◾
|
If the Committee concurs that a violation has occurred, it will inform and make a recommendation to the Board, which will consider appropriate action, which may
include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Officer.
|
◾
|
The Committee will be responsible for granting waivers, as appropriate.
|
◾
|
Any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.
|
V. |
Other Policies and Procedures
|
VI. |
Amendments
|
VII. |
Confidentiality
|
VIII. |
Internal Use
|
By: |
/s/ Joseph V. Amato |
|
Joseph V. Amato |
|
|
Chief Executive Officer and President |
|
|
|
|
By: |
/s/ John M. McGovern |
|
John M. McGovern |
|
|
Treasurer and Principal Financial and Accounting Officer | ||
|
|
1. |
The Registrant’s periodic report on Form N-CSR for the period ended April 30, 2023, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15
U.S.C. Section 78m(a) or 78o(d)); and
|
2. |
The information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
|
By:
|
/s/ Joseph V. Amato |
|
Joseph V. Amato |
|
Chief Executive Officer and President |
By:
|
/s/ John M. McGovern |
|
John M. McGovern |
|
Treasurer and Principal Financial
and Accounting Officer
|