Income Taxes:
It is the Funds policy to comply with the requirements of Subchapter M
of the Internal Revenue Code applicable to regulated investment companies and
to distribute timely, all of its investment company taxable income and net
realized capital gains to shareholders. Therefore, no federal income tax
provision is recorded. Under applicable foreign tax laws, a withholding tax may
be imposed on interest, dividends, and capital gains earned on foreign
investments. Where available, the Fund will file for claims on foreign taxes
withheld.
The
Fund accounts for uncertainty related to income taxes in accordance with U.S.
GAAP. The Fund recognizes tax benefits only if it is more likely than not that
a tax position (including the Funds assertion that its income is exempt from
tax) will be sustained upon examination.
As
of July 31, 2011 the net unrealized appreciation/depreciation of investments
based on federal tax costs were as follows:
|
|
|
|
|
Gross appreciation (excess
of value over tax cost)
|
|
$
|
195,405,786
|
|
|
|
|
|
|
Gross depreciation (excess
of tax cost over value)
|
|
|
(62,210,246
|
)
|
|
|
|
|
|
|
|
|
|
|
Net unrealized
appreciation/(depreciation)
|
|
$
|
133,195,540
|
|
|
|
|
|
|
|
|
|
|
|
Cost of investments for
income tax purposes
|
|
$
|
1,202,500,407
|
|
|
|
|
|
|
Distributions:
The Fund intends to make a level distribution each month to its
shareholders of the net investment income of the Fund after payment of Fund
operating expenses. The level distribution rate may be modified by the Board of
Trustees from time to time. If, for any monthly distribution, investment
company taxable income, if any (which term includes net short term capital
gain) and net tax-exempt income, if any, is less than the amount of the
distribution, the difference will generally be a tax free return of capital
distributed from the Funds assets. The Funds final distribution for each
calendar year will include any remaining investment company taxable income and
net tax exempt income undistributed during the year, as well as all net capital
gains, if any, realized during the year. If the total distributions made in any
fiscal year exceed annual investment company taxable income, net tax exempt
income and net capital gain, such excess distributed amount would be treated as
ordinary dividend income to the extent of the Funds current and accumulated
earnings and profits. Distributions in excess of the earnings and profits would
first be a tax free return of capital to the extent of the adjusted tax basis
in the shares. After such adjusted tax basis is reduced to zero, the
distribution would constitute capital gain (assuming the shares are held as capital
assets). Distributions to shareholders are recorded by the Fund on the ex
dividend date.
Foreign Currency Translation Transactions:
The Fund may invest a portion of its assets
in foreign securities. In the event that the Fund executes a foreign security
transaction, the Fund will generally enter into a forward foreign currency
contract to settle the foreign security transaction. The books and records of
the Fund are maintained in U.S. dollars. Non U.S. denominated amounts are
translated into U.S. dollars as follows, with the resultant translation gains
and losses recorded in the Statements of Operations:
|
|
i)
|
market
value of investment securities and other assets and liabilities at the
exchange rate on the valuation date,
|
|
ii)
|
purchases
and sales of investment securities, income and expenses at the exchange rate
prevailing on the respective date of such transactions.
|
Risk Associated With Foreign Securities and Currencies:
Investments in securities of foreign issuers
carry certain risks not ordinarily associated with investments in securities of
domestic issuers. Such risks include future political and economic developments
and the possible imposition of exchange controls or other foreign governmental
laws and restrictions. In addition, with respect to certain countries, there is
a possibility of expropriation of assets, confiscatory taxation, political or
social instability or diplomatic developments, which could adversely affect
investments in those countries. Certain countries may also impose substantial
restrictions on investments in their capital markets by foreign entities,
including restrictions on investments in issuers or industries deemed sensitive
to relevant national interests. These factors may limit the investment
opportunities available to the Fund or result in a lack of liquidity and high
price volatility with respect to securities of issuers from developing
countries.
Equity Linked Structured Notes:
The Fund may invest in equity linked
structured notes. Equity linked structured notes are derivative securities
which are specially designed to combine the characteristics of one or more
underlying securities and their equity derivatives in a single note form. The
return and/or yield or income component may be based on the performance of the
underlying equity securities, and equity index, and/or option positions. Equity
linked structured notes are typically offered in limited transactions by
financial institutions in either registered or non registered form. An
investment in equity linked structured notes creates exposure to the credit
risk of the issuing financial institution, as well as to the market risk of the
underlying securities. There is no guaranteed return of principal with these
securities and the appreciation potential of these securities may be limited by
a maximum payment or call right. In certain cases, equity linked structured
notes may be more volatile and less liquid than less complex securities or
other types of fixed income securities. Such securities may exhibit price
behavior that does not correlate with other fixed income securities. The Fund
did not hold any equity linked structured notes at July 31, 2011.
6
Forward Currency Contracts:
The Fund is subject to foreign currency
exchange rate risk in the normal course of pursuing its investment objective.
The Fund may use forward currency contracts to gain exposure to or hedge
against changes in the value of foreign currencies. A forward currency contract
(forward) is an agreement between two parties to buy and sell a currency at a
set price on a future date. The market value of the forward contract fluctuates
with changes in forward currency exchange rates. The forward contract is marked
to market daily and the change in market value is recorded by the Fund as
unrealized appreciation or depreciation. When the forward contract is closed,
the Fund records a realized gain or loss equal to the fluctuation in value
during the period the forward contract was open. The Fund could be exposed to
risk if a counterparty is unable to meet the terms of a forward or if the value
of the currency changes unfavorably. The Fund did not hold any forward currency
contracts at July 31, 2011.
Use of Estimates:
The Funds financial statements are prepared in accordance with
accounting principles generally accepted in the United States of America. This
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the reporting
period. Actual results could differ from these estimates.
7
|
|
|
|
|
Item 2 - Controls and Procedures.
|
|
|
(a)
|
The Registrants principal executive officer and principal financial
officer have evaluated the Registrants disclosure controls and procedures
(as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of
a date within 90 days of this filing and have concluded that the Registrants
disclosure controls and procedures were effective, as of that date.
|
|
|
(b)
|
There was no change in the Registrants internal control over
financial reporting (as defined in Rule 30a-3(d) under the Investment Company
Act of 1940) that occurred during the Registrants last fiscal quarter that
has materially affected, or is reasonably likely to materially affect, the
Registrants internal control over financial reporting.
|
|
|
Item 3 Exhibits.
|
|
Separate certifications for the Registrants principal executive
officer and principal financial officer, as required by Section 302 of
the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company
Act of 1940, are attached as Ex99.CERT.
|
|
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
|
|
|
|
|
ALPINE TOTAL DYNAMIC DIVIDEND FUND
|
|
|
|
|
|
|
By:
|
/s/ Samuel
A. Lieber
|
|
|
|
|
|
|
|
Samuel
A. Lieber
|
|
|
|
President (Principal Executive Officer)
|
|
|
|
|
|
|
Date:
|
September
29, 2011
|
Pursuant
to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, this report has been signed below by the following persons
on behalf of the registrant and in the capacities and on the dates indicated.
|
|
|
|
|
|
By:
|
/s/ Samuel
A. Lieber
|
|
|
|
|
|
|
|
Samuel
A. Lieber
|
|
|
|
President (Principal Executive Officer)
|
|
|
|
|
|
|
Date:
|
September
29, 2011
|
|
|
|
|
|
|
By:
|
/s/ Ronald
G. Palmer, Jr.
|
|
|
|
|
|
|
|
Ronald
G. Palmer, Jr.
|
|
|
|
Chief
Financial Officer
|
|
|
|
(Principal Financial
Officer)
|
|
|
|
|
|
|
Date:
|
September
29, 2011
|
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