0001388126 2025-05-01 2026-04-30 0001388126 2024-05-01 2025-04-30 0001388126 2026-04-30 0001388126 pdhifi:RisksMember 2025-05-01 2026-04-30 shares iso4217:USD shares 0001388126 false N-CSR Pioneer Diversified High Income Fund, Inc. 0.7 the investment objective of the Fund was to provide a high level of current income and the Fund could, as a secondary objective, also seek capital appreciation to the extent that it was consistent with the Fund’s investment objective. <table cellpadding="7" cellspacing="0" style="text-align:start; border-collapse:collapse;empty-cells:show;margin-top:9pt;width:100%"> <tr style="page-break-inside:avoid"> <td style="color: rgb(0, 0, 0); font-family: Arial; font-size: 9pt; font-style: normal; line-height: 12pt; padding-left: 0pt; padding-right: 2pt; text-align: left; text-decoration: none; text-transform: none; vertical-align: top; white-space: nowrap; width: 3.8%;"><div style="font-weight:bolder;display:inline;">E. </div></td> <td style="color: rgb(0, 0, 0); font-family: Arial; font-size: 9pt; font-style: normal; line-height: 12pt; padding-left: 2pt; text-align: left; text-decoration: none; text-transform: none; vertical-align: top; white-space: nowrap; width: 96.2%;"><div style="font-weight:bolder;display:inline;">Risks </div></td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:96.20%">The market prices of the Fund’s fixed income securities may fluctuate significantly when interest rates change. The value of your investment will generally go down when interest rates rise. A rise in rates tends to have a greater impact on the prices of longer term or duration securities. For example, if interest rates increase by 1%, the value of a Fund’s portfolio with a portfolio duration of ten years would be expected to decrease by 10%, all other things being equal. A general rise in interest rates could adversely affect the price and liquidity of fixed income securities. The maturity of a security may be significantly longer than </td></tr></table> <table cellpadding="7" cellspacing="0" style="text-align:start; border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%"> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">its effective duration. A security’s maturity and other features may be more relevant than its effective duration in determining the security’s sensitivity to other factors affecting the issuer or markets generally, such as changes in credit quality or in the yield premium that the market may establish for certain types of securities (sometimes called “credit spread”). In general, the longer its maturity the more a security may be susceptible to these factors. When the credit spread for a fixed income security goes up, or “widens”, the value of the security will generally go down. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">If an issuer or guarantor of a security held by the Fund or a counterparty to a financial contract with the Fund defaults on its obligation to pay principal and/or interest, has its credit rating downgraded or is perceived to be less creditworthy, or the credit quality or value of any underlying assets declines, the value of your investment will typically decline. Changes in actual or perceived creditworthiness may occur quickly. The Fund could be delayed or hindered in its enforcement of rights against an issuer, guarantor or counterparty. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">Prior to the Fund's liquidation (See Note 8), the Fund invested in below-investment grade (“high yield”) debt securities, floating rate loans and insurance-linked securities. The Fund was permitted to invest in securities and other obligations of any credit quality,including those that are rated below investment grade, or are unrated but are determined by the Adviser to be of equivalent credit quality. Below investment grade securities are commonly referred to as “junk bonds” and are considered speculative with respect to the issuer’s capacity to pay interest and repay principal. Below investment grade securities, including floating rate loans, involve greater risk of loss, are subject to greater price volatility, and may be less liquid and more difficult to value, especially during periods of economic uncertainty or change, than higher rated debt securities. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:96.20%">Certain securities in which the Fund invested, including floating rate loans, once sold, may not settle for an extended period (for example,several weeks or even longer). The Fund will not receive its sale proceeds until that time, which may constrain the Fund’s ability to meet its obligations. The Fund may invest in securities of issuers that are in default or that are in bankruptcy. The value of collateral, if any,securing a floating rate loan can decline or may be insufficient to meet the issuer’s obligations or may be difficult to liquidate. No active trading market may exist for many floating rate loans, and many loans are subject to restrictions on resale. Any secondary market may be subject to irregular trading activity and extended settlement periods. There is less readily available, reliable information about most floating rate loans </td></tr></table> <table cellpadding="7" cellspacing="0" style="text-align:start; border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%"> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">than is the case for many other types of securities. Normally, the Adviser will seek to avoid receiving material, nonpublic information about the issuer of a loan either held by, or considered for investment by, the Fund, and this decision could adversely affect the Fund’s investment performance. Loans may not be considered “securities,” and purchasers, such as the Fund, therefore may not be entitled to rely on the anti-fraud protections afforded by federal securities laws. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">The Fund invested in insurance-linked securities (“ILS”). ILS may include event-linked bonds (also known as insurance-linked bonds or catastrophe bonds), quota share instruments (also known as “reinsurance sidecars”), collateralized reinsurance investments, industry loss warranties, event-linked swaps, securities of companies in the insurance or reinsurance industries, and other insurance and reinsurance-related securities. The Fund could lose a portion or all of the principal it has invested in an ILS, and the right to additional interest or dividend payments with respect to the security, upon the occurrence of one or more trigger events, as defined within the terms of an insurance-linked security. ILS carry significant risk. See note 1.G. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">The Fund invested in mortgage-related and asset-backed securities. The value of mortgage-related and asset-backed securities will be influenced by factors affecting the assets underlying such securities. As a result, during periods of declining asset value, difficult or frozen credit markets, swings in interest rates, or deteriorating economic conditions, mortgage-related and asset-backed securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid. Mortgage-backed securities tend to be more sensitive to changes in interest rate than other types of debt securities. These securities are also subject to prepayment and extension risks. Some of these securities may receive little or no collateral protection from the underlying assets and are thus subject to the risk of default. The risk of such defaults is generally higher in the case of mortgage-backed investments offered by non-governmental issuers and those that include so-called “sub-prime” mortgages. The structure of some of these securities may be complex and there may be less available information than for other types of debt securities. Upon the occurrence of certain triggering events or defaults, the Fund may become the holder of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:96.20%">The Fund invested in credit risk transfer securities. Credit risk transfer securities are unguaranteed and unsecured debt securities issued by government sponsored enterprises and therefore are not directly linked to or backed by the underlying mortgage loans. As a result, in the event that a government sponsored enterprise fails to pay principal or interest </td></tr></table> <table cellpadding="7" cellspacing="0" style="text-align:start; border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%"> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">on its credit risk transfer securities or goes through a bankruptcy, insolvency or similar proceeding, holders of such credit risk transfer securities have no direct recourse to the underlying mortgage loans and will generally receive recovery on par with other unsecured note holders in such a scenario. The risks associated with an investment in credit risk transfer securities are different than the risks associated with an investment in mortgage-backed securities issued by Fannie Mae and Freddie Mac, or other government sponsored enterprise or issued by a private issuer, because some or all of the mortgage default or credit risk associated with the underlying mortgage loans is transferred to investors. As a result, investors in these securities could lose some or all of their investment in these securities if the underlying mortgage loans default. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">The Fund’s investments in foreign markets and countries with limited developing markets may subject the Fund to a greater degree of risk than investments in a developed market. These risks include disruptive political or economic conditions, military conflicts and sanctions, terrorism, sustained economic downturns, financial instability, less liquid trading markets, extreme price volatility, currency risks, reduction of government or central bank support, inadequate accounting standards, tariffs, tax disputes or other tax burdens, nationalization or expropriation of assets and the imposition of adverse governmental laws, arbitrary application of laws and regulations or lack of rule of law and investment and repatriation restrictions. Lack of information and less market regulation also may affect the value of these securities. Withholding and other non-U.S. taxes may decrease the Fund’s return. Non-U.S. issuers may be located in parts of the world that have historically been prone to natural disasters. Investing in depositary receipts is subject to many of the same risks as investing directly in non-U.S. issuers. Depositary receipts may involve higher expenses and may trade at a discount (or premium) to the underlying security. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:96.20%">In response to the military conflict in Ukraine commencing in 2022, the United States and other countries issued broad-ranging economic sanctions against Russia and Belarus and certain companies and individuals. Since then, Russian securities lost all, or nearly all, their market value, and many other issuers, securities and markets have been adversely affected. The United States and other countries may impose sanctions on other countries, companies and individuals in light of Russia’s military invasion. The extent and duration of the military action or future escalation of such hostilities, the extent and impact of existing and future sanctions, market disruptions and volatility, and the result of any diplomatic negotiations cannot be predicted. These and any </td></tr></table> <table cellpadding="7" cellspacing="0" style="text-align:start; border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%"> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">related events could have a significant impact on the value and liquidity of certain Fund investments, on Fund performance and the value of an investment in the Fund, particularly with respect to securities and commodities, such as oil, natural gas and food commodities, as well as other sectors with exposure to Russian issuers or issuers in other countries affected by the invasion, and are likely to have collateral impacts on market sectors globally. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">The Fund was permitted to invest a significant amount of its total assets in illiquid securities. Illiquid securities are securities that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the securities. </td></tr></table> <table cellpadding="7" cellspacing="0" style="text-align:start; border-collapse:collapse;empty-cells:show;margin-top:9pt;width:100%"> <tr style="page-break-inside:avoid"> <td style="color: rgb(0, 0, 0); font-family: Arial; font-size: 9pt; font-style: normal; line-height: 12pt; padding-left: 0pt; padding-right: 2pt; text-align: left; text-decoration: none; text-transform: none; vertical-align: top; white-space: nowrap; width: 3.8%;"><div style="font-weight:bolder;display:inline;">E. </div></td> <td style="color: rgb(0, 0, 0); font-family: Arial; font-size: 9pt; font-style: normal; line-height: 12pt; padding-left: 2pt; text-align: left; text-decoration: none; text-transform: none; vertical-align: top; white-space: nowrap; width: 96.2%;"><div style="font-weight:bolder;display:inline;">Risks </div></td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:96.20%">The market prices of the Fund’s fixed income securities may fluctuate significantly when interest rates change. The value of your investment will generally go down when interest rates rise. A rise in rates tends to have a greater impact on the prices of longer term or duration securities. For example, if interest rates increase by 1%, the value of a Fund’s portfolio with a portfolio duration of ten years would be expected to decrease by 10%, all other things being equal. A general rise in interest rates could adversely affect the price and liquidity of fixed income securities. The maturity of a security may be significantly longer than </td></tr></table> <table cellpadding="7" cellspacing="0" style="text-align:start; border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%"> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">its effective duration. A security’s maturity and other features may be more relevant than its effective duration in determining the security’s sensitivity to other factors affecting the issuer or markets generally, such as changes in credit quality or in the yield premium that the market may establish for certain types of securities (sometimes called “credit spread”). In general, the longer its maturity the more a security may be susceptible to these factors. When the credit spread for a fixed income security goes up, or “widens”, the value of the security will generally go down. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">If an issuer or guarantor of a security held by the Fund or a counterparty to a financial contract with the Fund defaults on its obligation to pay principal and/or interest, has its credit rating downgraded or is perceived to be less creditworthy, or the credit quality or value of any underlying assets declines, the value of your investment will typically decline. Changes in actual or perceived creditworthiness may occur quickly. The Fund could be delayed or hindered in its enforcement of rights against an issuer, guarantor or counterparty. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">Prior to the Fund's liquidation (See Note 8), the Fund invested in below-investment grade (“high yield”) debt securities, floating rate loans and insurance-linked securities. The Fund was permitted to invest in securities and other obligations of any credit quality,including those that are rated below investment grade, or are unrated but are determined by the Adviser to be of equivalent credit quality. Below investment grade securities are commonly referred to as “junk bonds” and are considered speculative with respect to the issuer’s capacity to pay interest and repay principal. Below investment grade securities, including floating rate loans, involve greater risk of loss, are subject to greater price volatility, and may be less liquid and more difficult to value, especially during periods of economic uncertainty or change, than higher rated debt securities. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:96.20%">Certain securities in which the Fund invested, including floating rate loans, once sold, may not settle for an extended period (for example,several weeks or even longer). The Fund will not receive its sale proceeds until that time, which may constrain the Fund’s ability to meet its obligations. The Fund may invest in securities of issuers that are in default or that are in bankruptcy. The value of collateral, if any,securing a floating rate loan can decline or may be insufficient to meet the issuer’s obligations or may be difficult to liquidate. No active trading market may exist for many floating rate loans, and many loans are subject to restrictions on resale. Any secondary market may be subject to irregular trading activity and extended settlement periods. There is less readily available, reliable information about most floating rate loans </td></tr></table> <table cellpadding="7" cellspacing="0" style="text-align:start; border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%"> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">than is the case for many other types of securities. Normally, the Adviser will seek to avoid receiving material, nonpublic information about the issuer of a loan either held by, or considered for investment by, the Fund, and this decision could adversely affect the Fund’s investment performance. Loans may not be considered “securities,” and purchasers, such as the Fund, therefore may not be entitled to rely on the anti-fraud protections afforded by federal securities laws. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">The Fund invested in insurance-linked securities (“ILS”). ILS may include event-linked bonds (also known as insurance-linked bonds or catastrophe bonds), quota share instruments (also known as “reinsurance sidecars”), collateralized reinsurance investments, industry loss warranties, event-linked swaps, securities of companies in the insurance or reinsurance industries, and other insurance and reinsurance-related securities. The Fund could lose a portion or all of the principal it has invested in an ILS, and the right to additional interest or dividend payments with respect to the security, upon the occurrence of one or more trigger events, as defined within the terms of an insurance-linked security. ILS carry significant risk. See note 1.G. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">The Fund invested in mortgage-related and asset-backed securities. The value of mortgage-related and asset-backed securities will be influenced by factors affecting the assets underlying such securities. As a result, during periods of declining asset value, difficult or frozen credit markets, swings in interest rates, or deteriorating economic conditions, mortgage-related and asset-backed securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid. Mortgage-backed securities tend to be more sensitive to changes in interest rate than other types of debt securities. These securities are also subject to prepayment and extension risks. Some of these securities may receive little or no collateral protection from the underlying assets and are thus subject to the risk of default. The risk of such defaults is generally higher in the case of mortgage-backed investments offered by non-governmental issuers and those that include so-called “sub-prime” mortgages. The structure of some of these securities may be complex and there may be less available information than for other types of debt securities. Upon the occurrence of certain triggering events or defaults, the Fund may become the holder of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:96.20%">The Fund invested in credit risk transfer securities. Credit risk transfer securities are unguaranteed and unsecured debt securities issued by government sponsored enterprises and therefore are not directly linked to or backed by the underlying mortgage loans. As a result, in the event that a government sponsored enterprise fails to pay principal or interest </td></tr></table> <table cellpadding="7" cellspacing="0" style="text-align:start; border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%"> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">on its credit risk transfer securities or goes through a bankruptcy, insolvency or similar proceeding, holders of such credit risk transfer securities have no direct recourse to the underlying mortgage loans and will generally receive recovery on par with other unsecured note holders in such a scenario. The risks associated with an investment in credit risk transfer securities are different than the risks associated with an investment in mortgage-backed securities issued by Fannie Mae and Freddie Mac, or other government sponsored enterprise or issued by a private issuer, because some or all of the mortgage default or credit risk associated with the underlying mortgage loans is transferred to investors. As a result, investors in these securities could lose some or all of their investment in these securities if the underlying mortgage loans default. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">The Fund’s investments in foreign markets and countries with limited developing markets may subject the Fund to a greater degree of risk than investments in a developed market. These risks include disruptive political or economic conditions, military conflicts and sanctions, terrorism, sustained economic downturns, financial instability, less liquid trading markets, extreme price volatility, currency risks, reduction of government or central bank support, inadequate accounting standards, tariffs, tax disputes or other tax burdens, nationalization or expropriation of assets and the imposition of adverse governmental laws, arbitrary application of laws and regulations or lack of rule of law and investment and repatriation restrictions. Lack of information and less market regulation also may affect the value of these securities. Withholding and other non-U.S. taxes may decrease the Fund’s return. Non-U.S. issuers may be located in parts of the world that have historically been prone to natural disasters. Investing in depositary receipts is subject to many of the same risks as investing directly in non-U.S. issuers. Depositary receipts may involve higher expenses and may trade at a discount (or premium) to the underlying security. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-bottom:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-bottom:0pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top; width:96.20%">In response to the military conflict in Ukraine commencing in 2022, the United States and other countries issued broad-ranging economic sanctions against Russia and Belarus and certain companies and individuals. Since then, Russian securities lost all, or nearly all, their market value, and many other issuers, securities and markets have been adversely affected. The United States and other countries may impose sanctions on other countries, companies and individuals in light of Russia’s military invasion. The extent and duration of the military action or future escalation of such hostilities, the extent and impact of existing and future sanctions, market disruptions and volatility, and the result of any diplomatic negotiations cannot be predicted. These and any </td></tr></table> <table cellpadding="7" cellspacing="0" style="text-align:start; border-collapse:collapse;empty-cells:show;margin-top:0pt;width:100%"> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">related events could have a significant impact on the value and liquidity of certain Fund investments, on Fund performance and the value of an investment in the Fund, particularly with respect to securities and commodities, such as oil, natural gas and food commodities, as well as other sectors with exposure to Russian issuers or issuers in other countries affected by the invasion, and are likely to have collateral impacts on market sectors globally. </td></tr> <tr style="page-break-inside:avoid"> <td style="line-height:0pt;padding-left:0pt;padding-right:2pt;text-align:left;vertical-align:top;width:3.80%">  </td> <td style="color:#000000;font-family:Arial;font-size:9pt;font-style:Normal;font-weight:Normal;line-height:12pt;padding-left:2pt;text-align:left;text-decoration:none;text-transform:none;vertical-align:top;width:96.20%">The Fund was permitted to invest a significant amount of its total assets in illiquid securities. Illiquid securities are securities that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the securities. </td></tr></table> 1000000000 common stock 8334759 8334759 The Fund is in the process of liquidating its assets pursuant to the Plan of Liquidation and Dissolution approved by stockholders at a meeting originally scheduled for July 17, 2025 and adjourned to August 13, 2025 (see Notes to Financial Statements, Note 8).