Herzfeld Caribbean Basin Fund holders approve shift to CLO equity strategy
Stockholders of the Herzfeld Caribbean Basin Fund, Inc. approved converting the fund from its current investment strategy to a CLO Equity Strategy, with about 96% of votes cast in favor at a June 17, 2025 special meeting. The fund's primary objective will become total return, with high current income as a secondary objective, and it will invest in equity and junior debt tranches of collateralized loan obligations. The changes take effect July 1, 2025, and include a new adviser fee based on managed assets plus an incentive fee.
Key points
- Approximately 96% of votes cast were in favor of the changes, approved at a special meeting held June 17, 2025.
- Primary objective changes to total return, with a secondary objective of generating high current income.
- The fund will invest in equity and junior debt tranches of collateralized loan obligations (CLOs), which consist primarily of below investment grade U.S. senior secured loans.
- Adviser Thomas J. Herzfeld Advisors, Inc. may receive a fee based on managed assets and an incentive fee; changes take effect July 1, 2025.
The filing
Written by AI on Nov 9, 2026, 8:29 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on June 18, 2025.
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