Guest Article: How To Navigate The Upcoming SWZ Rights Offering And Tender Offer

Author: George Spritzer, CFA

Summary

• The Total Return Securities Fund (SWZ) is launching a non-transferable rights offering at 85% of NAV, followed by a 15%-30% tender offer near NAV.

• SWZ’s shift to an activist, hedge-fund style strategy aims to address its persistent discount and attract new capital through these corporate actions.

• The tender offer and activist mandate are expected t…