Special Opportunities Fund Inc. (SPE) 2009年年度报告「NYSE」.pdf

1、Special Opportunities Fund,Inc.(formerly,Insured Municipal Income Fund Inc.)Annual ReportFor the nine months endedDecember 31,2009February 17,2010Dear Shareholders:First,I would like to review the recent history of Special Opportunities Fund(f/k/aInsured Municipal Income Fund).From its inception in

2、1993 until 2009,Insured Municipal Income Fund investedexclusively in tax free securities.After a proxy contest that ended on August 12,2009,a new Board of Directors was elected to manage the Fund.The Fundsformer investment advisor,UBS Global Asset Management(Americas)Inc.thenresigned effective Octob

3、er 18,2009.The newly elected Board voted to(1)replace UBS with Brooklyn Capital Management LLC,a newly formed investmentadvisor of which Andrew Dakos,Steve Samuels and I are principals,and(2)change the Funds principal investment objective from one of providing tax freeincome to one of providing tota

4、l return.These changes were subsequentlyapproved by stockholders.The name of the Fund was also changed to SpecialOpportunities Fund to conform to its new objective and BCMs opportunisticinvestment philosophy.In addition,in September 2009 the Board commenced a program to conduct anorderly sale of all

5、 of the Funds portfolio securities in order to fund a self-tenderoffer for the Funds common shares.The purpose of the self-tender offer was tofulfill a commitment we made during the proxy contest to afford stockholders anopportunity to realize the intrinsic value of their shares.Only after the tende

6、roffer was completed did BCM begin to invest the Funds remaining assets inaccordance with its new investment objective and policies.BCM voluntarilywaived its management fees until the tender was completed.That happened onJanuary 22,2010.All of the shares that were tendered were accepted forpayment a