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Closed End Fund Debt
Fort Dearborn Income Securities Inc. is a closed-end investment company that is listed on the New York Stock Exchange under the ticker symbol "FDI." The company's primary investment objective is to provide stockholders with current income, while seeking to preserve capital and achieve long-term growth of income and capital.
As a closed-end fund, Fort Dearborn Income Securities Inc. raised a fixed amount of capital through an initial public offering and issues a fixed number of shares that trade on the open market. The company invests primarily in a diversified portfolio of high-quality, income-producing securities, including government and corporate bonds, mortgage-backed securities, and preferred stocks.
In terms of financial performance, Fort Dearborn Income Securities Inc. reported total net assets of approximately $259.5 million as of December 31, 2021. The company's net investment income for the year ended December 31, 2021, was $4.6 million, or $0.65 per share, compared to $5.4 million, or $0.76 per share, for the year ended December 31, 2020. The decrease in net investment income was primarily due to lower interest rates and a decrease in the average yield of the portfolio.
The company's net asset value (NAV) per share as of December 31, 2021, was $11.39, compared to $11.31 as of December 31, 2020. The company's NAV per share has generally trended upward over the past five years, although there have been some fluctuations due to market conditions and changes in interest rates.
As for earnings growth, Fort Dearborn Income Securities Inc. has historically focused on generating stable, consistent income for its shareholders rather than achieving high levels of earnings growth. The company's dividend yield, which is calculated by dividing the annual dividend by the stock price, has typically been higher than the average yield for the overall stock market, making it an attractive option for income-focused investors.
Overall, Fort Dearborn Income Securities Inc. is a well-established closed-end investment company with a track record of providing stable income to its shareholders. While the company's earnings growth may not be as high as that of some other companies, its focus on income generation and capital preservation has made it a popular choice for investors seeking consistent returns over the long term.