1

 

Flaherty & Crumrine Total Return Fund Incorporated

PORTFOLIO OF INVESTMENTS

August 31, 2023 (Unaudited)

 

Shares/$ Par

Value

Preferred Stock & Hybrid Preferred Securities§ — 73.4%

 

Banking — 35.3%

$675,000

American AgCredit Corporation, 5.25% to 06/15/26 then
T5Y + 4.50%, Series A, 144A****

$599,906

*(1)(2)

 

Bank of America Corporation:

$1,990,000

5.875% to 03/15/28 then TSFR3M + 3.1926%, Series FF

1,839,058

*(1)(2)

$2,300,000

6.125% to 04/27/27 then T5Y + 3.231%, Series TT

2,236,750

*(1)(2)(3)

23,546

Cadence Bank, 5.50%, Series A

441,723

*(1)

 

Capital One Financial Corporation:

17,820

5.00%, Series I

337,154

*(1)(2)

$1,180,000

3.95% to 09/01/26 then T5Y + 3.157%, Series M

908,600

*(1)(2)

 

Citigroup, Inc.:

$600,000

3.875% to 02/18/26 then T5Y + 3.417%, Series X

526,524

*(1)(2)

$300,000

4.00% to 12/10/25 then T5Y + 3.597%, Series W

269,263

*(1)

$450,000

4.15% to 11/15/26 then T5Y + 3.00%, Series Y

376,331

*(1)

$450,000

4.70% to 01/30/25 then TSFR3M + 3.4956%, Series V

405,237

*(1)

$1,120,000

5.95% to 05/15/25 then TSFR3M + 4.1666%, Series P

1,081,220

*(1)(2)

227,619

6.875% to 11/15/23 then TSFR3M + 4.3916%, Series K

5,720,065

*(1)(2)

151,138

7.125% to 09/30/23 then TSFR3M + 4.3016%, Series J

3,861,576

*(1)(2)

$1,550,000

7.375% to 05/15/28 then T5Y + 3.209%, Series Z

1,563,563

*(1)(2)(3)

 

Citizens Financial Group, Inc.:

49,100

6.35% to 04/06/24 then TSFR3M + 3.9036%, Series D

1,185,274

*(1)(2)

$1,300,000

6.375% to 04/06/24 then TSFR3M + 3.4186%, Series C

1,131,976

*(1)(2)

 

CoBank ACB:

17,500

6.20% to 01/01/25 then TSFR3M + 4.0056%, Series H, 144A****

1,712,813

*(1)(2)

$609,000

6.25% to 10/01/26 then TSFR3M + 4.9216%, Series I, 144A****

585,641

*(1)(2)

$1,150,000

Comerica, Inc., 5.625% to 10/01/25 then T5Y + 5.291%, Series A

1,059,403

*(1)(2)(3)

$285,000

Compeer Financial ACA, 4.875% to 08/15/26 then
T5Y + 4.10%, Series B-1, 144A****

257,925

*(1)

47,900

ConnectOne Bancorp, Inc., 5.25% to 09/01/26 then T5Y + 4.42%, Series A

878,965

*(1)(2)

39,000

Dime Community Bancshares, Inc., 5.50%, Series A

621,270

*(1)

 

Fifth Third Bancorp:

67,291

6.00%, Series A

1,608,255

*(1)(2)

169,409

6.625% to 12/31/23 then TSFR3M + 3.9716%, Series I

4,299,600

*(1)(2)

19,620

First Citizens BancShares, Inc., 5.375%, Series A

406,919

*(1)


2

 

Flaherty & Crumrine Total Return Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

August 31, 2023 (Unaudited) 

 

Shares/$ Par

Value

 

First Horizon Corporation:

21,200

6.50%, Series E

$459,616

*(1)

3

FT Real Estate Securities Company, 9.50% 03/31/31, Series B, 144A****

3,925,125

875

First Horizon Bank, TSFR3M + 1.1116%, min 3.75%, 6.3925%(4), Series A, 144A****

599,375

*(1)

11,400

Fulton Financial Corporation, 5.125%, Series A

183,768

*(1)

 

Goldman Sachs Group:

$300,000

4.95% to 02/10/25 then T5Y + 3.224%, Series R

280,304

*(1)

$830,000

5.50% to 08/10/24 then T5Y + 3.623%, Series Q

815,846

*(1)(2)

7,937

6.375% to 05/10/24 then TSFR3M + 3.8116%, Series K

198,822

*(1)(2)

$565,000

7.50% to 02/10/29 then T5Y + 3.156%, Series W

569,237

*(1)

42,600

Heartland Financial USA, Inc., 7.00% to 07/15/25 then T5Y + 6.675%, Series E

1,015,158

*(1)(2)

 

HSBC Holdings PLC:

$1,400,000

HSBC Capital Funding LP, 10.176% to 06/30/30 then 3ML + 4.98%, 144A****

1,725,500

(1)(2)(5)

 

Huntington Bancshares, Inc.:

$405,000

4.45% to 10/15/27 then T7Y + 4.045%, Series G

344,477

*(1)

$1,175,000

5.625% to 07/15/30 then T10Y + 4.945%, Series F

1,075,125

*(1)(2)

43,600

6.875% to 04/15/28 then T5Y + 2.704%, Series J

1,054,248

*(1)(2)

$1,400,000

TSFR3M + 3.1416%, 8.4496%(4), Series E

1,272,400

*(1)(2)

 

JPMorgan Chase & Company:

$850,000

3.65% to 06/01/26 then T5Y + 2.85%, Series KK

753,235

*(1)(2)

$1,681,000

6.75% to 02/01/24 then TSFR3M + 4.0416%, Series S

1,682,051

*(1)(2)

$750,000

TSFR3M + 3.5616%, 8.9335%(4), Series R

751,950

*(1)(2)

 

KeyCorp:

78,103

6.125% to 12/15/26 then TSFR3M + 4.1536%, Series E

1,666,718

*(1)(2)

36,400

6.20% to 12/15/27 then T5Y + 3.132%, Series H

729,820

*(1)(2)

 

M&T Bank Corporation:

$725,000

3.50% to 09/01/26 then T5Y + 2.679%, Series I

517,194

*(1)(2)

23,066

5.625% to 12/15/26 then TSFR3M + 4.2816%, Series H

516,217

*(1)(2)

$3,500,000

6.45% to 02/15/24 then TSFR3M + 3.8716%, Series E

3,366,283

*(1)(2)

21,000

Merchants Bancorp, 6.00% to 10/01/24 then 3ML + 4.569%, Series B

477,120

*(1)

 

Morgan Stanley:

213,700

5.85%, Series K

5,088,197

*(1)(2)

89,000

6.875%, Series F

2,249,920

*(1)(2)

35,823

7.125%, Series E

905,247

*(1)(2)

$540,000

TSFR3M + 3.4216%, 8.712%(4), Series N

549,842

*(1)(2)(3)

235,200

New York Community Bancorp, Inc., 6.375% to 03/17/27 then 3ML + 3.821%, Series A

5,395,488

*(1)(2)


3

 

Flaherty & Crumrine Total Return Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

August 31, 2023 (Unaudited)

 

Shares/$ Par

Value

67,000

Northpointe Bancshares, Inc., 8.25% to 12/30/25 then TSFR3M + 7.99%, Series A

$1,623,075

*(1)

 

PNC Financial Services Group, Inc.:

$400,000

3.40% to 09/15/26 then T5Y + 2.595%, Series T

307,016

*(1)

$1,450,000

6.00% to 05/15/27 then T5Y + 3.00%, Series U

1,307,320

*(1)(2)(3)

$760,000

6.20% to 09/15/27 then T5Y + 3.238%, Series V

710,659

*(1)(2)(3)

$1,365,000

6.25% to 03/15/30 then T7Y + 2.808%, Series W

1,210,878

*(1)(2)(3)

 

Regions Financial Corporation:

125,350

5.70% to 08/15/29 then TSFR3M + 3.4096%, Series C

2,563,407

*(1)(2)

$65,000

5.75% to 09/15/25 then T5Y + 5.426%, Series D

62,119

*(1)

55,500

Synchrony Financial, 5.625%, Series A

906,315

*(1)(2)

91,848

Synovus Financial Corporation, 5.875% to 07/01/24 then T5Y + 4.127%, Series E

1,962,792

*(1)(2)(3)

35,900

Texas Capital Bancshares Inc., 5.75%, Series B

672,766

*(1)(2)

 

Truist Financial Corporation:

$870,000

4.95% to 12/01/25 then T5Y + 4.605%, Series P

810,535

*(1)(2)

$585,000

5.10% to 09/01/30 then T10Y + 4.349%, Series Q

514,742

*(1)(2)

38,203

Valley National Bancorp, TSFR3M + 3.8396%, 9.1159%(4), Series B

922,984

*(1)(2)

25,000

Washington Federal, Inc., 4.875%, Series A

363,250

*(1)(2)

13,416

Webster Financial Corporation, 6.50%, Series G

294,884

*(1)

 

Wells Fargo & Company:

53,000

4.25%, Series DD

917,960

*(1)(2)

41,000

4.70%, Series AA

757,270

*(1)(2)

325

7.50%, Series L

375,131

*(1)

$925,000

3.90% to 03/15/26 then T5Y + 3.453%, Series BB

820,591

*(1)(2)

81,100

5.85% to 09/15/23 then 8.94%, Series Q

2,022,634

*(1)

$1,250,000

5.875% to 06/15/25 then 9.865%, Series U

1,242,187

*(1)(2)

106,200

6.625% to 03/15/24 then 10.315%, Series R

2,665,620

*(1)(2)

$2,400,000

7.625% to 09/15/28 then T5Y + 3.606%, Series EE

2,463,000

*(1)

49,000

WesBanco, Inc., 6.75% to 11/15/25 then T5Y + 6.557%, Series A

1,102,500

*(1)(2)

25,300

Western Alliance Bancorp, 4.25% to 09/30/26 then T5Y + 3.452%, Series A

398,222

*(1)

48,000

Wintrust Financial Corporation, 6.875% to 07/15/25 then T5Y + 6.507%, Series E

1,124,640

*(1)(2)

$1,800,000

Zions Bancorporation, 7.20% to 09/15/23 then TSFR3M + 4.7016%, Series J

1,688,061

*(1)(2)

 

101,893,852

 

Financial Services — 3.2%

$2,530,000

AerCap Holdings NV, 5.875% to 10/10/24 then T5Y + 4.535%, 10/10/79

2,446,423

**(2)(3)(5)

 

Ally Financial, Inc.:

$1,390,000

4.70% to 05/15/26 then T5Y + 3.868%, Series B

980,754

*(1)(2)(3)

$925,000

4.70% to 05/15/28 then T7Y + 3.481%, Series C

597,731

*(1)(2)


4

 

Flaherty & Crumrine Total Return Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

August 31, 2023 (Unaudited) 

 

Shares/$ Par

Value

$775,000

American Express Company, 3.55% to 09/15/26 then T5Y + 2.854%, Series D

$647,125

*(1)(2)

15,400

Carlyle Finance LLC, 4.625% 05/15/61

256,410

$880,000

Discover Financial Services, 6.125% to 09/23/25 then T5Y + 5.783%, Series D

847,798

*(1)(2)

 

General Motors Financial Company:

$800,000

5.70% to 09/30/30 then T5Y + 4.997%, Series C

688,414

*(1)(2)

$610,000

5.75% to 09/30/27 then 3ML + 3.598%, Series A

501,725

*(1)(2)

$1,000,000

6.50% to 09/30/28 then 3ML + 3.436%, Series B

868,962

*(1)(2)

21,000

Raymond James Financial, Inc., 6.375% to 07/01/26 then
TSFR3M + 4.3496%, Series B

527,535

*(1)(2)

 

Stifel Financial Corp.:

21,000

4.50%, Series D

340,620

*(1)

29,000

6.25%, Series B

671,350

*(1)(2)

 

9,374,847

 

Insurance — 18.6%

67,000

American Equity Investment Life Holding Company, 5.95% to 12/01/24 then
T5Y + 4.322%, Series A

1,406,330

*(1)(2)

$2,150,000

American International Group, Inc., 8.175% to 05/15/38 then
3ML + 4.195%, 05/15/58

2,398,279

 

(2)(3)

25,000

Aspen Insurance Holdings Ltd., 5.625%

476,500

**(1)(2)(5)

19,300

Assurant, Inc., 5.25% 01/15/61

385,228

 

Athene Holding Ltd.:

28,800

4.875%, Series D

489,312

**(1)(2)(5)

120,000

6.35% to 06/30/29 then 3ML + 4.253%, Series A

2,650,800

**(1)(2)(5)

$880,000

AXIS Specialty Finance LLC, 4.90% to 01/15/30 then T5Y + 3.186%, 01/15/40

709,064

(2)(5)

 

Chubb Ltd.:

$1,440,000

Ace Capital Trust II, 9.70% 04/01/30

1,706,171

(2)(3)

16,100

CNO Financial Group, Inc., 5.125% 11/25/60

260,015

224,200

Delphi Financial Group, TSFR3M + 3.4516%, 8.8162%(4), 05/15/37

5,072,525

(2)(3)

 

Enstar Group Ltd.:

61,000

7.00% to 09/01/28 then 3ML + 4.015%, Series D

1,433,500

**(1)(2)(5)

$720,000

Enstar Finance LLC, 5.50% to 01/15/27 then T5Y + 4.006%, 01/15/42

570,314

(2)(5)

$575,000

Enstar Finance LLC, 5.75% to 09/01/25 then T5Y + 5.468%, 09/01/40

507,507

(2)(5)

$150,000

Equitable Holdings, Inc., 4.95% to 12/15/25 then T5Y + 4.736%, Series B

144,226

*(1)

$1,519,000

Everest Reinsurance Holdings, TSFR3M + 2.6466%, 8.0112%(4), 05/15/37

1,309,317

(2)(3)

$1,590,000

Global Atlantic Fin Company, 4.70% to 10/15/26 then
T5Y + 3.796%, 10/15/51, 144A****

1,150,958

 

(2)(3)

15,800

Jackson Financial, Inc., 8.00% to 03/30/28 then T5Y + 3.728%, Series A

394,210

*(1)


5

 

Flaherty & Crumrine Total Return Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

August 31, 2023 (Unaudited)

 

Shares/$ Par

Value

$1,000,000

Kuvare US Holdings, Inc., 7.00% to 05/01/26 then
T5Y + 6.541%, 02/17/51, Series A, 144A****

$1,080,000

*

 

Liberty Mutual Group:

$6,351,000

7.80% 03/15/37, 144A****

6,548,116

(2)(3)

$940,000

4.125% to 12/15/26 then T5Y + 3.315%, 12/15/51, 144A****

760,726

(2)

 

Lincoln National Corporation:

21,200

9.00%, Series D

561,376

*(1)(2)

$530,000

9.25% to 03/01/28 then T5Y + 5.318%, Series C

552,459

*(1)(2)

 

MetLife, Inc.:

$5,335,000

9.25% 04/08/38, 144A****

6,182,530

(2)(3)

$4,130,000

10.75% 08/01/39

5,303,828

(2)(3)

$577,000

MetLife Capital Trust IV, 7.875% 12/15/37, 144A****

606,211

(2)

 

Prudential Financial, Inc.:

$1,065,000

6.00% to 09/01/32 then T5Y + 3.234%, 09/01/52

1,019,237

(2)(3)

$400,000

6.75% to 03/01/33 then T5Y + 2.848%, 03/01/53

396,717

(2)

54,790

Reinsurance Group of America, Inc., 7.125% to 10/15/27 then
T5Y + 3.456%, 10/15/52

1,424,540

 

(2)

 

SBL Holdings, Inc.:

$1,500,000

6.50% to 11/13/26 then T5Y + 5.62%, Series B, 144A****

848,348

*(1)(2)(3)

$1,300,000

7.00% to 05/13/25 then T5Y + 5.58%, Series A, 144A****

798,564

*(1)(2)

 

Unum Group:

$5,803,000

Provident Financing Trust I, 7.405% 03/15/38

5,783,266

(2)

33,000

Voya Financial, Inc., 5.35% to 09/15/29 then T5Y + 3.21%, Series B

778,800

*(1)(2)

 

53,708,974

 

Utilities — 6.2%

 

Algonquin Power & Utilities Corporation:

$800,000

4.75% to 04/18/27 then T5Y + 3.249%, 01/18/82, Series 2022-B

655,085

(2)(5)

94,110

6.20% to 07/01/24 then 3ML + 4.01%, 07/01/79, Series 2019-A

2,282,168

(2)(5)

$900,000

CenterPoint Energy, Inc., 6.125% to 09/01/23 then TSFR3M + 3.5316%, Series A

900,000

*(1)

 

Commonwealth Edison:

$2,794,000

COMED Financing III, 6.35% 03/15/33

2,823,781

(2)(3)

$650,000

Dominion Energy, Inc., 4.35% to 04/15/27 then T5Y + 3.195%, Series C

552,335

*(1)(2)

 

Edison International:

$1,733,000

5.00% to 03/15/27 then T5Y + 3.901%, Series B

1,494,712

*(1)(2)(3)

$560,000

5.375% to 03/15/26 then T5Y + 4.698%, Series A

496,151

*(1)(2)

$2,940,000

Emera, Inc., 6.75% to 06/15/26 then 3ML + 5.44%, 06/15/76, Series 2016-A

2,833,425

(2)(3)(5)

40,000

NiSource, Inc., 6.50% to 03/15/24 then T5Y + 3.632%, Series B

996,000

*(1)(2)


6

 

Flaherty & Crumrine Total Return Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

August 31, 2023 (Unaudited) 

 

Shares/$ Par

Value

 

Sempra:

$1,000,000

4.125% to 04/01/27 then T5Y + 2.868%, 04/01/52

$809,939

(2)(3)

$1,400,000

4.875% to 10/15/25 then T5Y + 4.55%, Series C

1,327,606

*(1)(2)(3)

 

Southern California Edison:

$840,000

TSFR3M + 4.4606%, 9.8325%(4), Series E

842,100

*(1)(2)(3)

176

SCE Trust II, 5.10%, Series G

3,397

*(1)

44,140

SCE Trust V, 5.45% to 03/15/26 then TSFR3M + 4.0516%, Series K

1,010,364

*(1)(2)

$832,000

Southern Company, 3.75% to 09/15/26 then T5Y + 2.915%, 09/15/51, Series 2021-A

720,680

(2)

$185,000

Vistra Corporation, 7.00% to 12/15/26 then T5Y + 5.74%, Series B, 144A****

171,403

*(1)

 

17,919,146

 

Energy — 5.2%

$1,500,000

Enbridge, Inc., 6.00% to 01/15/27 then
TSFR3M + 4.1516%, 01/15/77, Series 2016-A

1,416,405

 

(2)(3)(5)

 

Energy Transfer LP:

$2,071,000

7.125% to 05/15/30 then T5Y + 5.306%, Series G

1,837,764

(1)(2)(3)

187,800

7.60% to 05/15/24 then TSFR3M + 5.4226%, Series E

4,663,074

(1)(2)

106,314

TSFR3M + 4.7916%, 10.1562%(4), Series C

2,711,007

(1)(2)

2,100

TSFR3M + 4.9996%, 10.3642%(4), Series D

53,319

(1)

$1,000,000

Enterprise Products Operating L.P., 5.25% to 08/16/27 then
TSFR3M + 3.2946%, 08/16/77, Series E

882,340

 

(2)(3)

45,500

NuStar Logistics LP, TSFR3M + 6.9956%, 12.3036%(4), 01/15/43

1,218,035

(2)

 

Transcanada Pipelines, Ltd.:

$2,250,000

5.50% to 09/15/29 then TSFR3M + 4.4156%, 09/15/79

1,898,482

(2)(5)

$300,000

5.875% to 08/15/26 then 3ML + 4.64%, 08/15/76, Series 2016-A

277,396

(2)(3)(5)

 

14,957,822

 

Communication — 1.1%

$900,000

British Telecommunications PLC, 4.875% to 11/23/31 then
T5Y + 3.493%, 11/23/81, 144A****

739,628

 

(2)(5)

$1,860,000

Paramount Global, 6.375% to 03/30/27 then T5Y + 3.999%, 03/30/62

1,536,174

(2)(3)

$900,000

Vodafone Group PLC, 7.00% to 04/04/29 then SW5 + 4.873%, 04/04/79

907,645

(2)(5)

 

3,183,447

 

Real Estate Investment Trust (REIT) — 1.6%

4,540

Annaly Capital Management, Inc., TSFR3M + 5.2546%, 10.5309%(4), Series F

116,088

(1)

 

Arbor Realty Trust, Inc.:

9,792

6.375%, Series D

186,048

(1)

67,100

6.25% to 10/30/26 then TSFR3M + 5.44%, Series F

1,390,312

(1)(2)

95,536

KKR Real Estate Finance Trust, Inc., 6.50%, Series A

1,913,586

(1)(2)


7

 

Flaherty & Crumrine Total Return Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

August 31, 2023 (Unaudited)

 

Shares/$ Par

Value

30,000

New York Mortgage Trust, Inc., 6.875% to 10/15/26 then TSFR3M + 6.13%, Series F

$573,300

(1)

28,200

TPG RE Finance Trust, Inc., 6.25%, Series C

486,168

(1)

 

4,665,502

 

Miscellaneous Industries — 2.2%

47,920

Apollo Global Management, Inc., 7.625% to 12/15/28 then T5Y + 3.226%, 09/15/53

1,231,544

$440,000

Apollo Management Holdings LP, 4.95% to 12/17/24 then
T5Y + 3.266%, 01/14/50, 144A****

405,076

 

Land O’ Lakes, Inc.:

$1,500,000

7.00%, Series C, 144A****

1,248,567

*(1)(2)

$4,350,000

7.25%, Series B, 144A****

3,545,250

*(1)(2)

 

6,430,437

 

Total Preferred Stock & Hybrid Preferred Securities
(Cost $231,798,361)

212,134,027

 

Contingent Capital Securities — 21.0%

 

Banking — 19.1%

$2,550,000

Australia & New Zealand Banking Group Ltd., 6.75% to 06/15/26 then
ISDA5 + 5.168%, 144A****

2,497,942

**(1)(2)(5)

 

Banco Bilbao Vizcaya Argentaria SA:

$3,000,000

6.125% to 11/16/27 then SW5 + 3.87%

2,572,605

**(1)(2)(5)

$1,000,000

6.50% to 03/05/25 then T5Y + 5.192%, Series 9

941,383

**(1)(2)(5)

 

Banco Mercantil del Norte SA:

$800,000

6.625% to 01/24/32 then T10Y + 5.034%, 144A****

644,412

**(1)(2)(5)

$1,077,000

7.50% to 06/27/29 then T10Y + 5.47%, 144A****

983,331

**(1)(2)(5)

$710,000

7.625% to 01/10/28 then T10Y + 5.353%, 144A****

661,846

**(1)(2)(5)

$6,200,000

Banco Santander SA, 4.75% to 05/12/27 then T5Y + 3.753%, 144A****

4,749,802

**(1)(2)(3)(5)

 

Barclays Bank PLC:

$475,000

4.375% to 09/15/28 then T5Y + 3.41%

327,893

**(1)(5)

$1,720,000

6.125% to 06/15/26 then T5Y + 5.867%

1,528,552

**(1)(2)(3)(5)

$1,310,000

7.75% to 09/15/23 then SW5 + 4.842%

1,313,183

**(1)(5)

$2,285,000

8.00% to 06/15/24 then T5Y + 5.672%

2,243,222

**(1)(2)(5)

$485,000

8.00% to 09/15/29 then T5Y + 5.431%

434,735

**(1)(5)

$670,000

BBVA Bancomer SA, 5.875% to 09/13/29 then T5Y + 4.308%, 09/13/34, 144A****

595,773

(2)(3)(5)


8

 

Flaherty & Crumrine Total Return Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

August 31, 2023 (Unaudited) 

 

Shares/$ Par

Value

 

BNP Paribas:

$475,000

4.625% to 02/25/31 then T5Y + 3.34%, 144A****

$347,985

**(1)(5)

$7,830,000

7.375% to 08/19/25 then SW5 + 5.15%, 144A****

7,692,584

**(1)(2)(5)

$970,000

7.75% to 08/16/29 then T5Y + 4.899%, 144A****

943,926

**(1)(2)(5)

$511,000

8.50% to 08/14/28 then T5Y + 4.354%, 144A****

510,489

**(1)(5)

$560,000

9.25% to 11/17/27 then T5Y + 4.969%, 144A****

578,407

**(1)(2)(5)

 

Credit Agricole SA:

$480,000

4.75% to 09/23/29 then T5Y + 3.237%, 144A****

376,608

**(1)(5)

$395,000

7.875% to 01/23/24 then SW5 + 4.898%, 144A****

394,072

**(1)(2)(5)

 

HSBC Holdings PLC:

$500,000

6.00% to 05/22/27 then ISDA5 + 3.746%

448,640

**(1)(2)(5)

$4,265,000

6.50% to 03/23/28 then ISDA5 + 3.606%

3,915,727

**(1)(2)(3)(5)

$775,000

ING Groep NV, 3.875% to 11/16/27 then T5Y + 2.862%

577,491

**(1)(2)(5)

 

Lloyds Banking Group PLC:

$2,750,000

7.50% to 09/27/25 then SW5 + 4.496%

2,580,549

**(1)(2)(3)(5)

$1,800,000

8.00% to 03/27/30 then T5Y + 3.913%

1,633,920

**(1)(2)(3)(5)

$730,000

Macquarie Bank Ltd., 6.125% to 03/08/27 then SW5 + 3.703%, 144A****

662,227

**(1)(2)(5)

$425,000

NatWest Group PLC, 4.60% to 12/28/31 then T5Y + 3.10%

290,393

**(1)(5)

 

Societe Generale SA:

$1,000,000

4.75% to 05/26/26 then T5Y + 3.931%, 144A****

817,090

**(1)(2)(5)

$1,000,000

5.375% to 11/18/30 then T5Y + 4.514%, 144A****

754,680

**(1)(2)(5)

$6,000,000

6.75% to 04/06/28 then SW5 + 3.929%, 144A****

5,097,420

**(1)(2)(3)(5)

$1,540,000

9.375% to 05/22/28 then T5Y + 5.385%, 144A****

1,535,124

**(1)(2)(3)(5)

 

Standard Chartered PLC:

$450,000

4.75% to 07/14/31 then T5Y + 3.805%, 144A****

329,918

**(1)(5)

$2,420,000

7.75% to 02/15/28 then T5Y + 4.976%, 144A****

2,364,696

**(1)(2)(3)(5)

 

UBS Group AG:

$675,000

4.375% to 02/10/31 then T5Y + 3.313%, 144A****

499,837

**(1)(2)(5)

$850,000

4.875% to 02/12/27 then T5Y + 3.404%, 144A****

711,025

**(1)(2)(5)

$2,500,000

UBS Group Funding Switzerland AG, 7.00% to 01/31/24 then
SW5 + 4.344%, 144A****

2,485,000

**(1)(2)(5)

 

55,042,487

 

Financial Services — 0.1%

$400,000

Deutsche Bank AG, 6.00% to 04/30/26 then T5Y + 4.524%

321,000

**(1)(5)

 

321,000


9

 

Flaherty & Crumrine Total Return Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

August 31, 2023 (Unaudited)

 

Shares/$ Par

Value

 

Insurance — 1.8%

$5,300,000

QBE Insurance Group Ltd., 7.50% to 11/24/23 then
SW10 + 6.03%, 11/24/43, 144A****

$5,311,654

 

(2)(3)(5)

 

5,311,654

 

Total Contingent Capital Securities
(Cost $67,110,414)

60,675,141

 

Corporate Debt Securities§ — 2.9%

 

Banking — 0.1%

10,900

Zions Bancorporation, 6.95% to 09/15/23 then
TSFR3M + 4.1516%, 09/15/28, Sub Notes

272,500

 

272,500

 

Insurance — 1.2%

$3,000,000

Liberty Mutual Insurance, 7.697% 10/15/97, 144A****

3,094,287

(2)(3)

$500,000

Universal Insurance Holdings, Inc., 5.625% 11/30/26

442,065

 

3,536,352

 

Energy — 0.4%

$940,000

Energy Transfer LP, 8.25% 11/15/29

1,044,551

(2)(3)

 

1,044,551

 

Communication — 0.3%

 

Qwest Corporation:

29,941

6.50% 09/01/56

374,263

41,820

6.75% 06/15/57

556,206

(2)

 

930,469

 

Miscellaneous Industries — 0.9%

$2,160,000

Pulte Group, Inc., 7.875% 06/15/32

2,470,426

(2)(3)

 

2,470,426

 

Total Corporate Debt Securities
(Cost $8,541,011)

8,254,298

 

Money Market Fund — 1.6%

 

BlackRock Liquidity Funds:

4,729,790

T-Fund, Institutional Class

4,729,790

 

 

Total Money Market Fund
(Cost $4,729,790)

4,729,790

 


10

 

Flaherty & Crumrine Total Return Fund Incorporated

PORTFOLIO OF INVESTMENTS (Continued)

August 31, 2023 (Unaudited) 

 

 

Value

Total Investments (Cost $312,179,576***)

98.9

%

$285,793,256

Other Assets and Liabilities, excluding Loan Payable (net)

1.1

%

3,060,319

Total Managed Assets

100.0

%

$288,853,575

Loan Principal Balance

(118,500,000

)

Net Assets Available To Common Stock

$170,353,575

  

§Date shown is maturity date unless referencing the end of the fixed-rate period of a fixed-to-floating rate security.

*Securities eligible for the Dividends Received Deduction and distributing Qualified Dividend Income.

**Securities distributing Qualified Dividend Income only.

***Aggregate cost of securities held.

****Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional buyers. At August 31, 2023, these securities amounted to $78,131,797 or 27.0% of total managed assets.

(1)Perpetual security with no stated maturity date.

(2)All or a portion of this security is pledged as collateral for the Fund’s loan. The total value of such securities was $248,679,117 at August 31, 2023.

(3)All or a portion of this security has been rehypothecated. The total value of such securities was $95,226,463 at August 31, 2023.

(4)Represents the rate in effect as of the reporting date.

(5)Foreign Issuer.

A Contingent Capital Security is a hybrid security with contractual loss-absorption characteristics.

The percentage shown for each investment category is the total value of that category as a percentage of total managed assets.

ABBREVIATIONS:

3ML3-Month ICE LIBOR USD A/360

ISDA55-year USD ICE Swap Semiannual 30/360

SW55-year USD Swap Semiannual 30/360

SW1010-year USD Swap Semiannual 30/360

T5YFederal Reserve H.15 5-Yr Constant Maturity Treasury Semiannual yield

T7YFederal Reserve H.15 7-Yr Constant Maturity Treasury Semiannual yield

T10YFederal Reserve H.15 10-Yr Constant Maturity Treasury Semiannual yield

TSFR3MCME Term SOFR 3-Month

The administrator of U.S. dollar LIBOR, ICE, ceased publication of daily U.S. dollar LIBOR panels after June 30, 2023. For securities where (i) issuers have announced replacement reference rates or (ii) the Adjustable Interest Rate (LIBOR) Act of 2022 was determined by the Adviser to apply, the new reference rate (usually Term SOFR) has been listed as the benchmark. The spread over that benchmark includes any tenor spread adjustment applicable upon benchmark transition. For all other securities, the original reference rate and spread continue to be listed.

Flaherty & Crumrine Total Return Fund Incorporated

Financial Highlights(1)

For the period December 1, 2022 through August 31, 2023 (Unaudited)

For a Common Stock share outstanding throughout the period

 


11

PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of period

$17.22

INVESTMENT OPERATIONS:

Net investment income

0.77

Net realized and unrealized gain/(loss) on investments

(0.86

)

Total from investment operations

(0.09

)

DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS:

From net investment income

(0.84

)

Total distributions to Common Stock Shareholders

(0.84

)

Net asset value, end of period

$16.29

Market value, end of period

$14.25

Common Stock shares outstanding, end of period

10,456,821

RATIOS TO AVERAGE NET ASSETS AVAILABLE TO COMMON STOCK SHAREHOLDERS: 

Net investment income†

6.14

%*

Operating expenses including interest expense

5.31

%*

Operating expenses excluding interest expense

1.42

%*

SUPPLEMENTAL DATA:††

Portfolio turnover rate

5

%**

Total managed assets, end of period (in 000’s)

$288,854

Ratio of operating expenses including interest expense to
average total managed assets

3.16

%*

Ratio of operating expenses excluding interest expense to
average total managed assets

0.84

%*

  

(1)These tables summarize the nine months ended August 31, 2023 and should be read in conjunction with the Fund’s audited financial statements, including notes to the financial statements, in its Annual Report dated November 30, 2022.

*Annualized.

**Not annualized.

The net investment income ratios reflect income net of operating expenses, including interest expense.

††Information presented under heading Supplemental Data includes loan principal balance.

 

Flaherty & Crumrine Total Return Fund Incorporated

Financial Highlights (Continued)

Per Share of Common Stock (Unaudited)

 


12

 

Total
Dividends
Paid

Net
Asset
Value

NYSE
Closing
Price

Dividend
Reinvestment
Price
(1)

December 30, 2022

$0.1035

$16.91

$15.79

$16.03

January 31, 2023

 0.1035

 18.39

 17.84

 17.87

February 28, 2023

 0.0955

 17.97

 16.67

 16.65

March 31, 2023

 0.0955

 16.01

 14.70

 14.78

April 28, 2023

 0.0955

 16.16

 14.90

 14.90

May 31, 2023

 0.0890