[Letterhead of Helios Total Return Fund, Inc.]
January 17, 2012
VIA EDGAR
Michael J. Shaffer, Esq.
United States Securities and Exchange Commission
Division of Investment Management
100 F Street, N.E.
Washington, DC 20549
Re: | Helios Total Return Fund, Inc. |
File Nos.: 333-178129 and 811-05820 |
Dear Mr. Shaffer:
In connection with your review of the Pre-effective Amendment No. 1 to the Registration Statement on Form N-14 (the Registration Statement) of the Helios Total Return Fund, Inc. (the Fund) that was filed with the Securities and Exchange Commission on January 9, 2012 (SEC Accession No. 0001193125-12-006731), the Fund acknowledges that:
1. In connection with the comments made by the Commission staff, the staff has not passed on the accuracy or adequacy of the disclosure made herein, and the Fund and its management are solely responsible for the content of such disclosure;
2. The staffs comments, and changes in disclosure in response to the staffs comments, do not foreclose the Commission or other regulatory body from the opportunity to seek enforcement or take other action with respect to the disclosure made herein; and
3. The Fund represents their neither it nor its management will assert the staffs comments or changes in disclosure in response to the staffs comments as a defense in any action or proceeding by the Commission or any person.
Securities and Exchange Commission
January 17, 2012
Page 2
Sincerely,
/S/ KIM G. REDDING |
Kim G. Redding President |
1(212) 318-6295
domenickpugliese@paulhastings.com
January 17, 2012 |
75302.00007 |
VIA EDGAR
Michael J. Shaffer, Esq.
United States Securities and Exchange Commission
Division of Investment Management
100 F Street, N.E.
Washington, DC 20549
Re: | Helios Total Return Fund, Inc. |
File Nos.: 333-178129 and 811-05820 |
Dear Mr. Shaffer:
This letter responds to our telephonic conversation on January 13, 2012, with respect to the Pre-effective Amendment No. 1 to the Registration Statement on Form N-14 (the Registration Statement) of Helios Total Return Fund, Inc. (the Fund), which was filed with the Securities and Exchange Commission (the Commission) on January 9, 2012 (SEC Accession No. 0001193125-12-006731).
The Fund proposes, with the approval of the Funds board of directors (the Board), to add a separate proposal to the proxy statement for the Fund, seeking shareholder approval for a change in the fundamental investment policy of the Fund relating to its concentration policy. As revised, the concentration policy would affirmatively state that the Fund would invest more than 25% of its total assets in privately issued mortgage backed securities and asset backed securities. Appropriate clarifications would also be made to the descriptions of the Funds investment policies.
The revised investment restriction would read as follows:
HTR may not invest 25% or more of the value of its total assets in securities of issuers engaged in any one industry, however, HTR under normal circumstances will invest at least 25% of its total assets in mortgage backed and other asset backed securities not issued or guaranteed as to principal or interest by the U.S. Government or its agencies or instrumentalities and other investments that Brookfield Investment Management Inc. determines have the same primary economic characteristics as such securities (also referred to as privately issued mortgage backed and asset backed securities). Such securities will be considered to be issuers in a single industry.
Michael J. Shaffer, Esq.
January 17, 2012
Page 2
For purposes of this concentration policy, privately issued mortgage backed and asset backed securities include, but are not limited to, any mortgage backed or asset backed security (other than those issued or guaranteed as to principal or interest by the U.S. Government or its agencies or instrumentalities). Exposures to mortgage backed and asset backed securities through derivatives or other financial instruments may be considered investments in mortgage backed or asset backed securities. Because the market for mortgage backed and asset backed securities continues to develop, it is possible that instruments that have not yet been created will be issued in the future by non-governmental entities and will be determined by the Investment Adviser to have similar economic characteristics as the instruments named in this paragraph. Such new instruments would be applied towards satisfying the Funds 25% policy.
The Fund will make the approval of the reorganization of Helios Strategic Mortgage Income Fund, Inc. into the Fund contingent on the Funds shareholders approving this change in the Funds concentration policy. If the Funds shareholders do not approve this proposal, then the Fund will discuss other options with the Board, including, among other things, a change in its investment strategy.
********
Should you have any questions regarding the foregoing, please do not hesitate to contact the undersigned at the number above. Thank you.
Very truly yours,
/S/ DOMENICK PUGLIESE |
Domenick Pugliese for PAUL HASTINGS LLP |
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