[GRAPHIC OMITTED] BOULDER TOTAL RETURN FUND, INC.
1680 38TH STREET, SUITE 800
BOULDER, COLORADO 80301
March 7, 2005
Dear Fellow Stockholder,
You are cordially invited to attend the 2005 Annual Meeting of Stockholders
of Boulder Total Return Fund, Inc., which will be held on April 26, 2005 at
9:00 a.m. Mountain Standard Time (local time), at the Millennium Resort
McCormick Ranch, 7401 N. Scottsdale Road, Scottsdale, Arizona. Details of the
business to be presented at the meeting can be found in the accompanying Notice
of Annual Meeting and Proxy Statement.
There are two non-routine proposals contained in this Proxy. They are
corporate governance matters which establish the number of directors at five and
change the voting standard for stockholder approved bylaws to a majority of
votes entitled to be cast.
As Chairman of the Board, I encourage you to support each of the proposals.
After careful review by the independent directors, the Board of Directors
unanimously approved and has recommended to stockholders that they approve each
of the proposals.
We hope you plan to attend the meeting. Your vote is important. Whether or
not you are able to attend, it is important that your shares be represented at
the Meeting. Accordingly, we ask that you please sign, date and return the
enclosed Proxy Card or vote via telephone or the Internet at your earliest
convenience.
On behalf of the Board of Directors and the management of Boulder Total
Return Fund, Inc., I extend our appreciation for your continued support.
Sincerely,
/s/ Richard I. Barr
Richard I. Barr
Chairman of the Board
If you have any questions concerning the accompanying Proxy
Statement or need help voting your shares, please call:
[GRAPHIC OMITTED]
MACKENZIE PARTNERS, INC.
105 Madison Avenue
New York, New York 10016
(212) 929-5500 (Call Collect)
Email: proxy@mackenziepartners.com
or
CALL TOLL-FREE: (800) 322-2885
[GRAPHIC OMITTED] BOULDER TOTAL RETURN FUND, INC.
1680 38TH STREET, SUITE 800
BOULDER, COLORADO 80301
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
To Be Held on April 26, 2005
To the Stockholders:
Notice is hereby given that the Annual Meeting of Stockholders of Boulder
Total Return Fund, Inc. (the "Fund"), a Maryland corporation, will be held at
the Millennium Resort McCormick Ranch, 7401 N. Scottsdale Road, Scottsdale,
Arizona at 9:00 a.m. Mountain Standard Time (local time), on April 26, 2005, for
the following purposes:
1. The election of Directors of the Fund (Proposal 1).
2. An amendment to the Charter to establish the number of Directors at
five (5) (Proposal 2).
3. An amendment to the Charter changing the voting standard for
stockholders to adopt, alter, amend or repeal Bylaws to the
affirmative vote of a majority of all the votes entitled to be cast on
the matter (Proposal 3).
4. To transact such other business as may properly come before the
Meeting or any adjournments and postponements thereof.
The Board of Directors of the Fund has fixed the close of business on
February 28, 2005 as the record date for the determination of stockholders of
the Fund entitled to notice of and to vote at the Annual Meeting.
By Order of the Board of Directors,
/s/ Stephanie Kelley
STEPHANIE KELLEY
Secretary
March 7, 2005
--------------------------------------------------------------------------------
STOCKHOLERS WHO DO NOT EXPECT TO ATTEND THE ANNUAL MEETING ARE REQUESTED TO
COMPLETE, SIGN AND DATE THE ENCLOSED PROXY CARD. THE PROXY CARD SHOULD BE
RETURNED IN THE ENCLOSED ENVELOPE, WHICH NEEDS NO POSTAGE IF MAILED IN THE
UNITED STATES. INSTRUCTIONS FOR THE PROPER EXECUTION OF PROXIES ARE SET FORTH ON
THE INSIDE COVER.
STOCKHOLDERS WHO HAVE QUESTIONS OR NEED ASSISTANCE IN VOTING MAY CONTACT
MACKENZIE PARTNERS, INC. TOLL FREE AT 1-800-322-2885 OR BY EMAIL AT
PROXY@MACKENZIEPARTNERS.COM
--------------------------------------------------------------------------------
Instructions for Signing Proxy Cards
The following general rules for signing proxy cards may be of
assistance to you and may avoid the time and expense to the Fund involved in
validating your vote if you fail to sign your proxy card properly.
1. Individual Accounts: Sign your name exactly as it appears in the
registration on the proxy card.
2. Joint Accounts: Either party may sign, but the name of the party
signing should conform exactly to a name shown in the registration.
3. All Other Accounts: The capacity of the individual signing the proxy
card should be indicated unless it is reflected in the form of registration. For
example:
Registration Valid Signature
Corporate Accounts
(1) ABC Corp. ABC Corp.
(2) ABC Corp. John Doe, Treasurer
(3) ABC Corp., c/o John Doe Treasurer John Doe
(4) ABC Corp. Profit Sharing Plan John Doe, Trustee
Trust Accounts
(1) ABC Trust Jane B. Doe, Trustee
(2) Jane B. Doe, Trustee, u/t/d 12/28/78 Jane B. Doe
Custodian or Estate Accounts
(1) John B. Smith, Cust., John B. Smith
f/b/o John B. Smith, Jr. UGMA
(2) John B. Smith John B. Smith, Jr., Executor
[GRAPHIC OMITTED] BOULDER TOTAL RETURN FUND, INC.
1680 38TH STREET, SUITE 800
BOULDER, COLORADO 80301
QUESTIONS & ANSWERS REGARDING THE MEETING AND PROPOSALS
Question 1: What is the purpose of the Annual Meeting?
Answer: At the Meeting, stockholders will be asked to vote on the election of
directors and two corporate governance proposals (i.e., Proposals 2 and 3),
which involve amending the Fund's charter (the "Corporate Governance
Proposals").
Question 2: Who is being nominated for election at the Meeting?
Answer: The Board has nominated the following five Directors, each to serve a
one-year term until the annual meeting in 2006 and until their successors are
duly elected and qualify: Richard I. Barr, Joel W. Looney, Alfred G. Aldridge,
Jr., Susan L. Ciciora and Dr. Dean L. Jacobson. The holders of Common Stock will
elect three of the five directors standing for election and the holders of
Preferred Stock will elect the remaining two directors. Ms. Ciciora and Mr. Barr
are being nominated to represent the interests of the holders of the Preferred
Stock (i.e., Taxable Auction Market Preferred Stock or "AMPs").
Question 3: Why is the Board recommending the Corporate Governance Proposals?
Answer: The Board is recommending the Corporate Governance Proposals to enhance
and clarify certain proposals that were approved by stockholders at the 2004
Annual Meeting. Last May, after stockholders approved a comprehensive range of
corporate governance proposals, the Board determined that several additional
changes should be made in order to give the effect intended by the Board, that
is, to balance the efficiency of operating the Fund with stockholders having an
effective voice. The first of these is a charter amendment that established the
"maximum" number of directors at five (5). The Board believes stockholders will
be better served if the number of directors is instead "fixed" at five, no more,
no less, in order to avoid altogether the common abuse of manipulating board
size to affect the voting impact of directors. The second is a charter amendment
that would permit stockholders to adopt, alter, amend or repeal bylaws with a
"majority of votes cast." The Board has determined that this standard was
perhaps too relaxed and might encourage unwanted activism and nuisance proposals
to change bylaws that would be costly and result in a diversion to the important
business of the Fund.
Question 4: How do the Horejsi Affiliates (as defined below at Page 2) intend to
vote on the Corporate Governance Proposals?
Answer: The Horejsi Affiliates intend to vote in favor of each of the Proposals,
including each Corporate Governance Proposal.
Question 5: How does the Board recommend that stockholders vote on the various
proposals?
Answer: If no instructions are indicated on your proxy, the representatives
holding proxies will vote in accordance with the recommendations of the Board.
The Board, including all of the Independent Directors, has unanimously
recommended that stockholders vote FOR all of the Proposals.
Question 6: Who is entitled to vote?
Answer: Stockholders of record at the close of business on February 28, 2005
(the "Record Date") are entitled to notice of and to vote at the Meeting. Each
of the shares outstanding on the Record Date is entitled to one vote on each of
the Proposals.
Question 7: What is the required quorum for the Meeting?
Answer: The holders of at least a majority of the outstanding common shares must
be represented at the Meeting, either in person or by proxy, in order to
constitute a quorum permitting business to be conducted at the Meeting. If you
have completed, executed and returned valid proxy instructions (in writing, by
phone or by Internet) or attend the Meeting and vote in person, your shares will
be counted for purposes of determining whether there is a quorum, even if you
abstain from voting on any or all matters introduced at the Meeting.
Question 8: How do I vote?
Answer: Your vote is very important. Stockholders can vote in person at the
Meeting or authorize proxies to cast their votes ("proxy voting") by proxy. Most
stockholders will have a choice of proxy voting over the Internet at
http://www.proxyvote.com, by using a toll-free telephone number or by completing
a Proxy Card and mailing it in the postage-paid envelope provided. Please refer
to your Proxy Card or the information forwarded by your bank, broker or other
nominee to see which options are available to you. If you proxy vote by Internet
or telephone, you do NOT need to return your Proxy Card. If you vote by proxy,
the individuals named on the Proxy Card as proxy holders will vote your shares
in accordance with your instructions. You may specify whether your shares should
be voted for all, some or none of the nominees for director and whether your
shares should be voted for or against the other proposals. If you execute an
otherwise valid proxy but do not provide voting instructions, the persons named
as proxies will cast your votes FOR all of the Proposals.
Question 9: Can I revoke or change my proxy?
Answer: Yes. You may change or revoke your proxy at any time before the Meeting
by timely delivery of a properly executed, later-dated proxy (including an
Internet or phone vote), by sending a written revocation to the Secretary of the
Fund at the Fund's address listed on the accompanying Notice of Meeting, or by
attending and voting in person at the Meeting. The powers of the proxy holders
will be suspended with respect to your shares if you attend the meeting in
person and so request, but attendance at the Meeting will not by itself revoke a
previously granted proxy.
[GRAPHIC OMITTED] BOULDER TOTAL RETURN FUND, INC.
1680 38TH STREET, SUITE 800
BOULDER, COLORADO 80301
ANNUAL MEETING OF STOCKHOLDERS
April 26, 2005
PROXY STATEMENT
This proxy statement ("Proxy Statement") for Boulder Total Return Fund,
Inc., a Maryland corporation ("BTF" or the "Fund"), is furnished in connection
with the solicitation of proxies by the Fund's Board of Directors (collectively,
the "Board" and individually, the "Directors") for use at the Annual Meeting of
Stockholders of the Fund to be held on Tuesday, April 26, 2005, at 9:00 a.m.
Mountain Standard Time (local time), at the Millennium Resort McCormick Ranch,
7401 N. Scottsdale Drive, Scottsdale, Arizona, and at any adjournments and
postponements thereof (the "Meeting"). A Notice of Annual Meeting of
Stockholders and proxy card for the Fund accompany this Proxy Statement. Proxy
solicitations will be made, beginning on or about March 7, 2005, primarily by
mail, but proxy solicitations may also be made by telephone, by Internet on the
Fund's website, telegraph or personal interviews conducted by officers of the
Fund and PFPC Inc., the transfer agent of the Fund, and by MacKenzie Partners,
Inc. ("MacKenzie"), the Fund's proxy solicitor. MacKenzie's fee to assist in the
solicitation of proxies is estimated to be $7,500 plus expenses. The costs of
proxy solicitation and expenses incurred in connection with the preparation of
this Proxy Statement and its enclosures will be paid by the Fund. The Fund also
will reimburse brokerage firms and others for their expenses in forwarding
solicitation material to the beneficial owners of its shares. The Board has
fixed the close of business on February 28, 2005 as the record date (the "Record
Date") for the determination of stockholders entitled to notice of and to vote
at the Meeting.
The Annual Report of the Fund, including audited financial statements for
the fiscal period ended November 30, 2004, has been mailed to stockholders.
Additional copies are available upon request, without charge, by calling
1-800-331-1710. The report is also viewable online at the Fund's website at
www.boulderfunds.net. The report is not to be regarded as proxy solicitation
material.
Boulder Investment Advisers, L.L.C. ("BIA"), 1680 38th Street, Suite 800,
Boulder, Colorado 80301 and Stewart Investment Advisers ("SIA"), Bellerive,
Queen Street, St. Peter, Barbados, currently serve as co-investment advisers to
the Fund. BIA and SIA are collectively referred to herein as the "Advisers".
Fund Administrative Services, L.L.C. ("FAS"), serves as co-administrator to the
Fund and is located at 1680 38th Street, Suite 800, Boulder, Colorado 80301.
Investors Bank & Trust Company ("IBT") acts as the co-administrator to the Fund
and is located at 200 Clarendon Street, Boston, Massachusetts 02116. PFPC Inc.
("PFPC") acts as the transfer agent to the Fund and is located at 4400 Computer
Drive, Westborough, Massachusetts 01581.
If the enclosed proxy is properly executed and returned by April 26, 2005
in time to be voted at the Meeting, the Shares (as defined below) represented
thereby will be voted in accordance with the instructions marked thereon. Unless
instructions to the contrary are marked thereon, a proxy will be voted FOR the
election of the nominees for Directors, FOR each of the other Proposals and, in
the discretion of the proxy holders, on any other matters that may properly come
before the Meeting. Any stockholder who has given a proxy has the right to
revoke it at any time prior to its exercise either by attending the Meeting and
casting his or her votes in person or by submitting a letter of revocation or a
later-dated proxy to the Fund's Secretary at the above address prior to the date
of the Meeting.
A quorum of the Fund's stockholders is required for the conduct of business
at the Meeting. Under the Bylaws of the Fund, a quorum is constituted by the
presence in person or by proxy of the holders of a majority of the outstanding
shares of the Fund as of the Record Date. In the event that a quorum is not
present at the Meeting, or in the event that a quorum is present but sufficient
votes to approve one or more proposals are not received, the persons named as
proxies may propose and vote for one or more adjournments of the Meeting to
permit further solicitation of proxies with respect to any proposal that did not
receive the votes necessary for its passage. With respect to those proposals for
which there is represented a sufficient number of votes in favor, actions taken
at the Meeting will be approved and implemented irrespective of any adjournments
with respect to any other proposals. Any such adjournment will require the
affirmative vote of a majority of votes cast on the matter at the Meeting. If a
quorum is present, the persons named as proxies will vote those proxies which
they are entitled to vote FOR any proposal in favor of such an adjournment and
will vote those proxies required to be voted AGAINST any proposal against any
such adjournment.
The Fund has two classes of stock: common stock, par value $0.01 per share
(the "Common Stock"), and preferred stock, par value $0.01 per share (the
"Preferred Stock"), 1000 shares of which have been designated as Taxable Auction
Market Preferred Stock (the "AMPs") (the Common Stock and AMPs are collectively
referred to herein as the "Shares"). On the Record Date, the following number of
Shares of the Fund were issued and outstanding:
Common Stock AMPs
Outstanding Outstanding
----------- -----------
12,338,660 775
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS. The following table sets
forth certain information regarding the beneficial ownership of the Shares as of
the Record Date by each person who is known by the Fund to beneficially own 5%
or more of the Fund's outstanding Common Stock. To the Fund's knowledge, there
are no 5% or greater beneficial owners of the AMPs.
Name of Owner* Number of Shares Number of Shares Percentage
Directly Owned (1) Beneficially Owned (2) Beneficially Owned
------------------------------------------- ------------------------ -------------------------- ----------------------
Badlands Trust Company, LLC (1)(3) 0 5,382,982 43.63%
Stewart R. Horejsi Trust No. 2 (4) 0 5,382,982 43.63%
Ernest Horejsi Trust No. 1B (1) 3,413,138 3,413,138 27.66%
Lola Brown Trust No. 1B (1) 1,370,515 1,370,515 11.11%
Evergreen Atlantic LLC (1) 343,748 343,748 2.79%
Stewart West Indies Trust (1)(2) 104,627 255,876 2.07%
Susan L. Ciciora Trust (1)(2) 72,176 175,300 1.42%
John S. Horejsi Trust (1)(2) 53,080 104,642 0.85%
Evergreen Trust (1)(2) 25,698 63,510 0.51%
------------------------ -------------------------- ----------------------
Aggregate Shares Owned by Horejsi 5,382,982 5,382,982 43.63%
Affiliates (defined below) **
------------------------------------------- ------------------------ -------------------------- ----------------------
Alter Asset Management, Inc.*** 1,159,159 1,159,159 9.40%
* The address of Evergreen Atlantic LLC is 1680 38th Street, Suite 800,
Boulder, Colorado 80301. The address of each other listed owner is c/o
Badlands Trust Company, LLC, 3601 C Street, Suite 600, Anchorage, AK 99503.
** Aggregate number and percentage are less than the sum total of amounts
shown for each owner because the same shares may be deemed beneficially
owned by more than one party (see Footnotes 1 through 4 below).
*** As stated in a Schedule 13G filed with the Securities and Exchange
Commission on February 7, 2005.
(1) Direct Ownership. Evergreen Atlantic, LLC ("EALLC"), The Evergreen Trust
(the "Evergreen Trust"), John S. Horejsi Trust ("John Trust"), Susan L.
Ciciora Trust ("Susan Trust"), Stewart West Indies Trust ("SWI Trust"), the
Lola Brown Trust No. 1B (the "Brown Trust"), the Ernest Horejsi Trust No.
1B (the "EH Trust"), Badlands Trust Company, LLC ("Badlands"), the Stewart
R. Horejsi Trust No. 2 (the "SRH Trust") and Stewart R. Horejsi are, as a
group, considered to be a "control person" of the Fund (as that term is
defined in Section 2(a)(9) of the Investment Company Act of 1940, as
amended (the "1940 Act")). EALLC, the Evergreen Trust, John Trust, Susan
Trust, SWI Trust, the Brown Trust, the EH Trust and Badlands (collectively,
the "Horejsi Affiliates") directly own the shares indicated for such entity
in the table above, totaling 5,382,982 (43.63%). However, these entities
and other trusts or companies with interlocking management and/or common
ownership may be deemed to indirectly own additional Fund shares, which are
included in the table above.
(2) Indirect Ownership Through EALLC. Numbers shown in the table include shares
held directly (see Footnote No. 1) and shares that may be deemed to be
beneficially owned indirectly through ownership of EALLC. The outstanding
membership interests in EALLC are owned by the Evergreen Trust, the Susan
Trust, the John Trust and the SWI Trust in the following percentages - 11%,
30%, 15% and 44%. The Trustees of the Evergreen Trust are Stephen C.
Miller, Larry Dunlap and Badlands. Badlands is the sole trustee for each of
the Susan Trust, the John Trust and the SWI Trust. Mr. Horejsi is not a
beneficiary under any of the foregoing trusts. Badlands has sole discretion
with respect to the Susan Trust, John Trust and SWI Trust while any action
by the Evergreen Trust requires a majority vote of the trustees.
Consequently, both the trusts and each trustee disclaim beneficial
ownership of shares owned by EALLC. Mr. Horejsi is the manager of EALLC.
(3) Ownership by Badlands. The number shown includes shares that may be deemed
to be beneficially owned indirectly by Badlands through direct or indirect
ownership by the Brown Trust, the EH Trust, EALLC, Evergreen Trust, the
Susan Trust, the John Trust and the SWI Trust. Badlands is the sole trustee
of the Susan Trust, the John Trust and the SWI Trust, which together with
the Evergreen Trust control EALLC (see Footnote No. 2), the other two
trustees of Evergreen Trust being Stephen C. Miller and Larry Dunlap.
Badlands, together with Larry Dunlap and Susan Ciciora (Mr. Horejsi's
daughter), is one of three trustees of both the Brown Trust and the EH
Trust.
Badlands is a limited liability company organized under the laws of Alaska
authorized to do business as a trust company, which is wholly owned by the
SRH Trust, an irrevocable trust organized by Mr. Stewart Horejsi for the
benefit of his issue. The Managers of Badlands are Larry Dunlap, Stephen C.
Miller, Robert Ciciora, who is the brother of Mr. Horejsi's son-in-law
(John Ciciora), Laura Rhodenbaugh and Kevin VanNortwick. Badlands and its
managers disclaim beneficial ownership of shares owned directly by the
EALLC, the Evergreen Trust, the Susan Trust, the John Trust, the SWI Trust,
the Brown Trust and the EH Trust.
(4) Indirect Ownership by SRH Trust. The number shown in the table reflects
shares that may be deemed to be beneficially owned indirectly through the
SRH Trust's ownership of Badlands. The trustees of the SRH Trust are
Badlands, Robert Ciciora and Brian Sippy. Both the Trust and its trustees
disclaim beneficial ownership of shares beneficially owned directly or
indirectly by Badlands.
----------------------------
Information as to beneficial ownership in the previous paragraph has been
obtained from a representative of the beneficial owners; all other information
as to beneficial ownership is based on reports filed with the Securities and
Exchange Commission (the "SEC") by such beneficial owners.
As of the Record Date, Cede & Co., a nominee partnership of the Depository
Trust Company, held of record, but not beneficially, 12,278,256 shares or 99.51%
of Common Stock outstanding and 775 shares or 100% of AMPs outstanding.
As of the Record Date, the executive officers and directors of the Fund, as
a group, owned 5,410,320 shares of Common Stock (this amount includes the
aggregate shares of Common Stock owned by the Horejsi Affiliates set forth
above) and 0 shares of AMPs of the Fund, representing 43.85% of Common Stock
outstanding and 0% of AMPs.
In order that your Shares may be represented at the Meeting, you are
requested to vote on the following matters:
PROPOSAL 1
ELECTION OF DIRECTORS OF THE FUND
The Charter provides that all of the Directors stand for election each
year. The Board has nominated the following five Director nominees to stand for
election, each for a one-year term and until their successors are duly elected
and qualify: Richard I. Barr, Joel W. Looney, Alfred G. Aldridge, Jr., Susan L.
Ciciora and Dr. Dean L. Jacobson. Only the Common Stock holders are entitled to
vote on the election of Messrs. Looney, Aldridge and Jacobson and only the AMPs
holders are entitled to vote on the election of Mr. Barr and Ms. Ciciora. At a
regularly scheduled meeting of the Board of Directors held on October 15, 2004,
the Board accepted the resignation of Stephen C. Miller as a Director of the
Fund. The remaining directors elected Dean L. Jacobson as Mr. Miller's
replacement. Mr. Miller, previously an interested director of the Fund, resigned
in order to bring the Fund into compliance with recent SEC regulations that
become effective in January 2006 and which require that 75% of the Board be
non-interested directors. The above nominees have consented to serve as
Directors if elected at the Meeting for the one-year term. If the designated
nominees decline or otherwise become unavailable for election, however, the
proxy confers discretionary power on the persons named therein to vote in favor
of a substitute nominee or nominees.
INFORMATION ABOUT DIRECTORS AND OFFICERS. Set forth in the following table
is information about the nominees for election to the Board of Directors, all of
whom are currently Directors of the Fund:
------------------------------ ------------------------ ---------------------------------------------- ------------------
Name, Address*, Age Position, Length of Principal Occupation(s) and Other Number of Funds
Term Served, and Term Directorships Held During the Past Five Years in Fund Complex+
of Office Overseen by
Director
------------------------------ ------------------------ ---------------------------------------------- ------------------
Independent Directors
Richard I. Barr Director of the Fund Retired. From 1963-2001, Manager of 3
Chairman since 1999. Chairman Advantage Sales and Marketing, Inc. (food
Age: 67 of the Board since brokerage); Director, Boulder Growth &
2003. Current Nominee Income Fund, Inc., since 2002; Director,
for a term to expire First Financial Fund, Inc., since 2001.
at the 2006
annual meeting.
Joel W. Looney, Director of the Fund Partner, Financial Management Group, LLC 3
Age: 43 since 2001. Current (investment adviser) since July 1999; CFO,
Nominee for a term to Bethany College from 1995-1999; Director,
expire at the 2006 Boulder Growth & Income Fund, Inc., since
annual meeting. 2002; Director and Chairman of the Board,
First Financial Fund, Inc. since 2003.
Alfred G. Aldridge, Jr. Director of the Fund Executive Vice President, Business Development 2
Brig. Gen. (Retired) since 1999. Current Specialists, Phoenix, AZ since 2004; from
Cal. Air National Guard Nominee for a term to 1982-2002, Sales Manager of Shamrock Foods
Age: 67 expire at the 2006 Company; Director of the Arizona Sports
annual meeting. Foundation since 1997; Director, Boulder
Growth & Income Fund, Inc., since 2002;
Director, Maricopa Youth Assistance Foundation,
Phoenix, AZ since 2004.
Dr. Dean L. Jacobson Director of the Fund Founder and President of Forensic 2
Age: 66 since October 2004. Engineering, Inc. (engineering
Current Nominee for a investigations); since 1997, Professor
term to expire at the Emeritus at Arizona State University; prior
2006 annual meeting. to 1997 Professor of Engineering at Arizona
State University; Director, First Financial
Fund, Inc., since 2003.
------------------------------ ------------------------ ---------------------------------------------- ------------------
Interested Director**
------------------------------ ------------------------ ---------------------------------------------- ------------------
Susan L. Ciciora Director of the Fund Trustee of the Brown Trust and the EH 1
Age: 40 since 2001. Current Trust; Director, Boulder Growth & Income
nominee for a term to Fund, Inc., January 2002 to October 2004;
expire at the 2006 Director, First Financial Fund, Inc. since
annual meeting. 2003.
* Unless otherwise specified, the Directors' respective addresses are c/o
Boulder Total Return Fund, Inc., 1680 38th Street, Suite 800, Boulder,
Colorado 80301.
** Ms.Ciciora is an "interested person" as a result of the extent of her
beneficial ownership of Fund shares and by virtue of her indirect
beneficial ownership of BIA and FAS.
+ Includes the Fund, Boulder Growth & Income Fund, Inc. and First Financial
Fund, Inc.
----------------------------
From the late 1980's until January, 2001, Mr. Looney served, without
compensation, as one of three trustees of the Mildred Horejsi Trust, an
affiliate of the EH Trust.
The names of the executive officers of the Fund are listed in the table
below. Each officer was elected to office by the Board at a meeting held on
January 21, 2005. This table also shows certain additional information. Each
officer will hold such office until a successor has been elected by the Board.
------------------------------ -------------------------- ----------------------------------------------------------
Position, Length of
Name, Address, Age Term Served, and Term of Principal Occupation(s) and Other Directorships held
Office During the Past Five Years
------------------------------ -------------------------- ----------------------------------------------------------
Stephen C. Miller President of the Fund President of and General Counsel for BIA; Manager of
1680 38th Street, since 1999. Appointed FAS; Vice President of SIA; Director and Chairman of the
Suite 800 annually. Fund from 1999 to October 2004; President and Director
Boulder, CO 80301 of Boulder Growth & Income Fund, Inc., since 2002
Age: 52 (resigned as Director in 2004); Director and President
of First Financial Fund, Inc. since 2003 (resigned as
Director and Chairman in 2004); President and General
Counsel, Horejsi, Inc. (liquidated in 1999); General
Counsel, Brown Welding Supply, LLC (sold in 1999);
officer of various other Horejsi Affiliates; Of Counsel,
Krassa & Miller, LLC since 1991.
Carl D. Johns Chief Financial Officer, Vice President and Treasurer of BIA and Assistant
1680 38th Street, Chief Accounting Manager of FAS, since 1999; Vice President, Chief
Suite 800 Officer, Vice President Financial Officer and Chief Accounting Officer, Boulder
Boulder, CO 80301 and Treasurer since Growth & Income Fund, Inc., since 2002 and First
Age: 42 1999. Appointed Financial Fund, Inc., since August 2003.
annually.
Stephanie J. Kelley Secretary since 2000. Secretary, Boulder Growth & Income Fund, Inc., since
1680 38th Street, Appointed annually. 2002 and First Financial Fund, Inc., since August 2003;
Suite 800 Assistant Secretary and Assistant Treasurer of various
Boulder, CO 80301 Horejsi Affiliates; employee of FAS since March 1999.
Age: 48
Nicole L. Murphey Assistant Secretary Assistant Secretary, Boulder Growth & Income Fund, Inc.
1680 38th Street, since 2000. Appointed since 2002 and First Financial Fund, Inc. since August
Suite 800 annually. 2003; employee of FAS since July 1999.
Boulder, CO 80301
Age: 28
Set forth in the following table are the nominees for election to the Board
(all of whom are current Directors of the Fund) together with the dollar range
of equity securities beneficially owned by each Director as of the Record Date,
as well as the aggregate dollar range of the Fund's equity securities in all
funds overseen in a family of investment companies (i.e., other funds managed by
BIA and SIA (collectively, the "Advisers")).
OWNERSHIP OF THE FUND BY DIRECTORS
---------------------------------------------------------------------------------------------------------
Independent Directors and Nominees Dollar Range of Equity Aggregate Dollar Range of
Securities in the Fund Equity Securities in All Funds
in the Family of Investment
Companies
-------------------------------------- -------------------------------- ---------------------------------
Alfred G. Aldridge, Jr. $10,001 to $50,000 $50,000 to $100,000
Richard I. Barr Over $100,000 Over $100,000
Joel W. Looney $50,000 to $100,000 Over $100,000
Dr. Dean Jacobson $0 $0
Interested Directors and Nominees
-------------------------------------- -------------------------------- ---------------------------------
Susan L. Ciciora Over $100,000+ Over $100,000
+ 3,413,138, 343,748 and 1,370,515 Shares of the Fund are held by the EH Trust,
EALLC and the Lola Trust, respectively. Accordingly, Ms. Ciciora may be deemed
to have indirect beneficial ownership of such Shares. Ms. Ciciora disclaims all
such beneficial ownership. Ms. Ciciora directly owns 6,267 shares of the Fund.
----------------------------
None of the independent Directors or their family members owned
beneficially or of record any securities of the Advisers or any person directly
or indirectly controlling, controlled by, or under common control with the
Advisers.
DIRECTOR AND OFFICER COMPENSATION. The following table sets forth certain
information regarding the compensation of the Fund's Directors for the fiscal
year ended November 30, 2004. No persons (other than the independent Directors,
as set forth below) currently receive compensation from the Fund for acting as a
Director or officer. Directors and executive officers of the Fund do not receive
pension or retirement benefits from the Fund. Directors receive reimbursement
for travel and other out of pocket expenses incurred in connection with Board
meetings.
Aggregate
Compensation
Name of Person and Position with the from the Fund Total Compensation from
Fund Paid to the Fund and Fund Complex
Directors Paid to Directors
----------------------------------------- ------------------- ----------------------------
Alfred G. Aldridge, Jr., Director $26,500 $49,500
(2 funds)
Richard I. Barr, Director and Chairman $30,500 $79,000
of the Board (3 funds)
Joel W. Looney, Director $28,500 $86,000
(3 funds)
Dr. Dean L. Jacobson, Director $5,533 $31,033
(2 funds)
Susan L. Ciciora Director $0 $0
Each Director of the Fund who was not a Director, officer or employee of one of
the Advisers, or any of their affiliates, receives a fee of $8,000 per annum
plus $4,000 for each in person meeting, $500 for each Audit Committee meeting
and $500 for each telephonic meeting of the Board. In addition, the Chairman of
the Board and the Chairman of the Audit Committee receive $1000 per meeting.
Each Director of the Fund is reimbursed for travel and out-of-pocket expenses
associated with attending Board and Committee meetings. The Board held seven
meetings (three of which were held by telephone conference call) during the
fiscal year ended November 30, 2004. Each Director currently serving in such
capacity for the entire fiscal year attended at least 75% of the meetings of
Directors and any Committee of which he is a member. Directors currently serving
and who served less than the entire fiscal year attended at least 75% of such
meetings held during their tenure as a Director. The aggregate remuneration paid
to the Directors of the Fund for acting as such during the fiscal year ended
November 30, 2004 amounted to $91,032.97.
COMMITTEES OF THE BOARD OF DIRECTORS
AUDIT COMMITTEE; REPORT OF AUDIT COMMITTEE. The purpose of the Audit
Committee is to assist Board oversight of the integrity of the Fund's financial
statements, the Fund's compliance with legal and regulatory requirements, the
independent auditor's qualifications and independence and the performance of the
Fund's independent auditors. The Audit Committee reviews the scope and results
of the Fund's annual audit with the Fund's independent accountants and
recommends the engagement of such accountants. Management, however, is
responsible for the preparation, presentation and integrity of the Fund's
financial statements, and the independent accountants are responsible for
planning and carrying out proper audits and reviews. The Board of Directors
adopted a written charter for the Audit Committee on January 23, 2002 and most
recently amended the Charter on January 23, 2004. A copy of the Audit Committee
Charter was attached as an appendix to the Fund's proxy in 2004. The Audit
Committee is composed entirely of the Fund's independent Directors, consisting
of Messrs. Aldridge, Barr, Jacobson and Looney. Each member of the Audit
Committee is independent, as that term is defined by the NYSE Listing Standards.
The Audit Committee met two times during the fiscal year ended November 30,
2004.
In connection with the audited financial statements as of and for the
period ended November 30, 2004 included in the Fund's Annual Report for the
period ended November 30, 2004 (the "Annual Report"), at a meeting held on
January 21, 2005, the Audit Committee considered and discussed the audited
financial statements with management and the independent accountants, and
discussed the audit of such financial statements with the independent
accountants.
The Audit Committee has received the written disclosures and letter from
the independent accountants required by Independence Standards Board Standard
No. 1 (Independence Discussions with Audit Committees) and has discussed with
independent accountants their independence. The Audit Committee discussed with
the independent accountants the accounting principles applied by the Fund and
such other matters brought to the attention of the Audit Committee by the
independent accountants required by Statement of Auditing Standards No. 61,
Communications With Audit Committees, as currently modified or supplemented.
The members of the Audit Committee are not professionally engaged in the
practice of auditing or accounting and are not employed by the Fund in any
accounting, financial management or internal control capacity. Moreover, the
Audit Committee relies on and makes no independent verification of the facts
presented to it or representations made by management or the independent
accountants. Accordingly, the Audit Committee's oversight does not provide an
independent basis to determine that management has maintained appropriate
accounting and financial reporting principles and policies, or internal controls
and procedures, designed to assure compliance with accounting standards and
applicable laws and regulations. Furthermore, the Audit Committee's
considerations and discussions referred to above do not provide assurance that
the audit of the Fund's financial statements has been carried out in accordance
with generally accepted accounting standards or that the financial statements
are presented in accordance with generally accepted accounting principles.
Based on its consideration of the audited financial statements and the
discussions referred to above with management and the independent accountants
and subject to the limitation on the responsibilities and role of the Audit
Committee set forth in the charter and those discussed above, the Audit
Committee of the Fund recommended to the Board that the audited financial
statements be included in the Fund's Annual Report and be mailed to stockholders
and filed with the SEC.
Submitted by the Audit Committee of the Fund's Board of Directors:
Alfred G. Aldridge, Jr.
Richard I. Barr
Dr. Dean L. Jacobson
Joel W. Looney
NOMINATING COMMITTEE. The Board of Directors has a nominating committee
(the "Nominating Committee") consisting of Messrs. Looney, Aldridge, Jacobson
and Barr, which is responsible for considering candidates for election to the
Board in the event a position is vacated or created. Each member of the
Nominating Committee is independent, as that term is defined by the NYSE Listing
Standards. The Nominating Committee met once during the fiscal year ended
November 30, 2004. The Nominating Committee met on October 15, 2004 to consider
the nomination of Dr. Dean L. Jacobson. Dr. Jacobson was being considered to
fill a vacancy on the Board resulting from the resignation of Stephen C. Miller
as a Director of the Fund. Mr. Miller, previously an interested director of the
Fund, resigned in order to bring the Fund into compliance with recent SEC
regulations which become effective in January 2006 and which require that 75% of
the Board be non-interested directors The Board of Directors has adopted a
charter for the Nominating Committee that is available on the Fund's website,
www.boulderfunds.net.
The Nominating Committee does not have a formal process for identifying
candidates. The Nominating Committee takes into consideration such factors as it
deems appropriate when nominating candidates. These factors may include
judgment, skill, diversity, experience with investment companies and other
organizations of comparable purpose, complexity, size and subject to similar
legal restrictions and oversight, the interplay of the candidate's experience
with the experience of other Board members, and the extent to which the
candidate would be a desirable addition to the Board and any committees thereof.
The Nominating Committee will consider all qualified candidates in the same
manner. The Nominating Committee may modify its policies and procedures for
director nominees and recommendations in response to changes in the Fund's
circumstances, and as applicable legal or listing standards change.
The Nominating Committee would consider director candidates recommended
by stockholders (if a vacancy were to exist) and submitted in accordance with
applicable law and procedures as described in this Proxy Statement (see
"Submission of Stockholder Proposals" below). Such recommendations should be
forwarded to the Secretary of the Fund.
The Fund does not have a compensation committee.
OTHER BOARD-RELATED MATTERS
Stockholders who wish to send communications to the Board should send them
to the address of the Fund and to the attention of the Board. All such
communications will be directed to the Board's attention.
The Fund does not have a formal policy regarding Board member attendance at
the Annual Meeting of Stockholders; however, all of the Directors of the Fund,
who were Directors at the time, attended the May 18, 2004 Annual Meeting of
Stockholders.
Vote Required. The election of Messrs. Looney, Aldridge and Jacobson as
Directors of the Fund will require the affirmative vote of a plurality of the
votes cast by holders of the Common Stock at the Meeting in person or by proxy
on Proposal 1; and the election of Mr. Barr and Ms. Ciciora as Directors of the
Fund will require the affirmative vote of a plurality of the votes cast by the
holders of the AMPs at the Meeting in person or by proxy on Proposal 1.
THE BOARD OF DIRECTORS, INCLUDING ALL OF THE INDEPENDENT DIRECTORS, UNANIMOUSLY
RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" THE ELECTION OF ALL THE NOMINEES.
PROPOSAL 2
AMENDMENT TO THE CHARTER TO ESTABLISH THE NUMBER OF DIRECTORS AT FIVE
The Board proposes and unanimously recommends that stockholders approve an
amendment to the Charter providing that the number of Directors shall be five.
Any subsequent amendment to this new Charter provision would require the
affirmative vote of the holders of a majority of all the votes entitled to be
cast on the matter. If stockholders approve this Proposal, the Fund will take
action to implement the Proposal by filing the appropriate charter documents
with the State Department of Assessments of Maryland ("SDAT"). If approved by
stockholders, Article 5, Section 5.1 will be repealed in its entirety and
replaced by the following provision:
The number of directors shall be five.
Purpose of the Amendment. The Board is submitting this Proposal to the
stockholders as part of its ongoing corporate governance initiatives and in
keeping with its goal of ensuring that the Fund's corporate governance policies
maximize Board and management accountability to stockholders. Last May,
stockholders approved a charter amendment that established the "maximum" number
of directors at five. In retrospect, the Board determined that the Fund would be
better served if the number of directors was fixed at five, no more, no less.
Company charters often contain provisions that permit the board to increase or
decrease the number of board seats in the board's discretion. Currently the
Fund's Charter sets a "maximum" on the Board seats at five, leaving it to the
discretion of the Board to decrease that number to no less than that required by
Maryland law. Boards sometimes use such provisions in an effort to dilute the
voting impact of directors - such as those elected in proxy contests - with
views contrary to those of management. The Board views the power to manipulate
the number of directors on the Board as unnecessary and ultimately ineffective
in thwarting stockholder activism. In addition, it potentially increases Fund
expenses and insulates the Board from stockholders.
The Board considered this Proposal as well as Proposal No. 3 at its meeting on
January 21, 2005. The Board has determined that this Proposal furthers the goal
of ensuring that the Fund's corporate governance policies maximize Board and
management accountability to stockholders and allow stockholders better and
more consistent access to effect change in the Fund's governing documents.
Vote Required. Approval of Proposal 2 requires the affirmative vote of a
majority of the votes entitled to be cast on the matter by the holders of the
Common Stock and Preferred Stock, voting as a single class.
THE BOARD OF DIRECTORS, INCLUDING ALL OF THE INDEPENDENT DIRECTORS, UNANIMOUSLY
RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" PROPOSAL 2.
PROPOSAL 3
AMENDMENT TO THE CHARTER VESTING IN THE STOCKHOLDERS THE POWER
TO ADOPT, AMEND, ALTER OR REPEAL THE FUND'S BYLAWS
Last May, stockholders approved a charter amendment that would permit
stockholders to amend bylaws with a "majority of votes cast". After review, the
Board determined that the "majority of votes cast" standard was perhaps too
relaxed and might encourage nuisance proposals to change bylaws that would be
costly and result in a diversion from the more important business of the Fund.
Accordingly, the Board proposes and unanimously recommends that stockholders
approve an amendment to the Charter which would impose a "majority of
outstanding shares" standard on stockholders' power to adopt, amend, alter or
repeal bylaws. If Proposal 3 is approved, any subsequent proposal to amend the
Charter to alter stockholders' power to amend the Bylaws would require the
affirmative vote of the holders of a majority of all votes entitled to be cast
on the matter.
If stockholders approve this Proposal, the Fund will take action to
implement the Proposal by filing the appropriate Charter documents with the
SDAT. If approved by stockholders, amended Article 4.3 would read as follows:
The Bylaws of the Corporation, whether adopted by the Board of
Directors or the stockholders, shall be subject to amendment,
alteration or repeal, and new Bylaws may be made, by either (a) the
stockholders by the affirmative vote of a majority of all the votes
entitled to be cast on the matter or (b) the Board of Directors;
provided, however, that the Board of Directors may not (i) amend or
repeal a Bylaw that allocates solely to stockholders the power to
amend or repeal such Bylaw, or (ii) amend or repeal Bylaws or make new
Bylaws that conflict with or otherwise alter in any material respect
the effect of Bylaws previously adopted by the stockholders.
Purpose of the Amendment. The Board is submitting this Proposal to the
stockholders as part of its ongoing corporate governance initiatives and in
keeping with its goal of ensuring that the Fund's corporate governance policies
maximize Board and management accountability to stockholders. The Board believes
that the authority to make, alter or repeal Bylaws should be a shared authority
between the Board and stockholders. This permits the Board to be responsive to
house-keeping as well as substantive matters regarding Fund operations, while at
the same time giving stockholders the power to effect changes should they choose
to do so. However, the Board thinks it is important to place a sufficiently high
barrier on stockholders' ability to initiate bylaws so as to avoid nuisance
proposals that are costly to the Fund, divert its attention from its primary
business and are generally not in the Fund's best interest. The Board believes
that this Proposal will accommodate the practicalities of managing the Fund
while at the same time protecting an important right of stockholders to effect
bylaw changes if there is sufficient and broad stockholder support (i.e., the
affirmative vote of holders of a majority of shares rather than just a bare
majority of votes cast, which may be substantially less than a majority of
shares).
The Board considered this Proposal as well as Proposal No. 2 at its meeting on
January 21, 2005. The Board has determined that this Proposal furthers the goal
of ensuring that the Fund's corporate governance policies maximize Board and
management accountability to stockholders and allow stockholders better and
more consistent access to effect change in the Fund's governing documents.
Vote Required. Approval of Proposal 3 requires the affirmative vote of a
majority of the votes entitled to be cast on the matter by the holders of the
Common Stock and Preferred Stock, voting as a single class.
THE BOARD OF DIRECTORS, INCLUDING ALL OF THE INDEPENDENT DIRECTORS, UNANIMOUSLY
RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" PROPOSAL 3.
SUBMISSION OF STOCKHOLDER PROPOSALS
Notice is hereby given that for a stockholder proposal to be considered for
inclusion in the Fund's proxy material relating to its 2006 annual meeting of
stockholders, the stockholder proposal must be received by the Fund no later
than November 7, 2005. Any such proposal shall set forth as to each matter the
stockholder proposes to bring before the meeting (i) a brief description of the
business desired to be brought before the meeting and the reasons for conducting
such business at the meeting, (ii) the name and address, as they appear on the
Fund's books, of the stockholder proposing such business, (iii) the class and
number of shares of the capital stock of the Fund which are beneficially owned
by the stockholder, and (iv) any material interest of the stockholder in such
business. Stockholder proposals, including any accompanying supporting
statement, may not exceed 500 words. A stockholder desiring to submit a proposal
must be a record or beneficial owner of Shares with a market value of $2,000 and
must have held such Shares for at least one year. Further, the stockholder must
continue to hold such Shares through the date on which the meeting is held.
Documentary support regarding the foregoing must be provided along with the
proposal. There are additional requirements regarding proposals of stockholders,
and a stockholder contemplating submission of a proposal is referred to Rule
14a-8 promulgated under the 1934 Act. The timely submission of a proposal does
not guarantee its inclusion in the Fund's proxy materials.
Pursuant to the Fund's By-laws, at any annual meeting of the stockholders,
only business that has been properly brought before the meeting will be
conducted. To be properly brought before the annual meeting, the business must
be (i) specified in the notice of meeting, (ii) by or at the direction of the
Board of Directors, or (iii) otherwise properly brought before the meeting by a
stockholder. For business to be properly brought before the annual meeting by a
stockholder, the stockholder must have given timely notice thereof in writing to
the Secretary of the Fund. To be timely, a stockholder's notice must be
delivered to the Secretary at 1680 38th Street, Suite 800, Boulder, Colorado
80301 no later than 5:00 p.m., Mountain Time, on the 120th day prior to the
first anniversary of the date of mailing of the notice for the preceding year's
annual meeting. However, if the date of the annual meeting is advanced or
delayed by more than 30 days from the first anniversary of the date of the
preceding year's annual meeting, for notice by the stockholder to be timely, it
must be delivered not later than 5:00 p.m., Mountain Time, on the later of the
120th day prior to the date of such annual meeting or the tenth day following
the day on which public announcement of the date of such meeting is first made.
The public announcement of a postponement or adjournment of an annual meeting
shall not commence a new time period for the giving of a stockholder's notice as
described above.
Pursuant to the Fund's By-laws, such stockholder's notice shall set forth
(i) as to each individual whom the stockholder proposes to nominate for election
or reelection as a director, (A) the name, age, business address and residence
address of such individual, (B) the class, series and number of any shares of
stock of the Fund that are beneficially owned by such individual, (C) the date
such shares were acquired and the investment intent of such acquisition, (D)
whether such stockholder believes any such individual is, or is not, an
"interested person" of the Fund, as defined in the 1940 Act and information
regarding such individual that is sufficient, in the discretion of the Board of
Directors or any committee thereof or any authorized officer of the Fund, to
make such determination and (E) all other information relating to such
individual that is required to be disclosed in solicitations of proxies for
election of directors in an election contest (even if an election contest is not
involved), or is otherwise required, in each case pursuant to Regulation 14A (or
any successor provision) under the Exchange Act and the rules thereunder
(including such individual's written consent to being named in the proxy
statement as a nominee and to serving as a director if elected); (ii) as to any
other business that the stockholder proposes to bring before the meeting, a
description of such business, the reasons for proposing such business at the
meeting and any material interest in such business of such stockholder and any
Stockholder Associated Person (as defined below), individually or in the
aggregate, including any anticipated benefit to the stockholder and the
Stockholder Associated Person therefrom; (iii) as to the stockholder giving the
notice and any Stockholder Associated Person, the class, series and number of
all shares of stock of the Fund which are owned by such stockholder and by such
Stockholder Associated Person, if any, and the nominee holder for, and number
of, shares owned beneficially but not of record by such stockholder and by any
such Stockholder Associated Person; (iv) as to the stockholder giving the notice
and any Stockholder Associated Person covered by the immediately preceding
clauses (ii) or (iii), the name and address of such stockholder, as they appear
on the Fund's stock ledger and current name and address, if different, and of
such Stockholder Associated Person; and (v) to the extent known by the
stockholder giving the notice, the name and address of any other stockholder
supporting the nominee for election or reelection as a director or the proposal
of other business on the date of such stockholder's notice. "Stockholder
Associated Person" of any stockholder shall mean (i) any person controlling,
directly or indirectly, or acting in concert with, such stockholder, (ii) any
beneficial owner of shares of stock of the Fund owned of record or beneficially
by such stockholder and (iii) any person controlling, controlled by or under
common control with such Stockholder Associated Person.
ADDITIONAL INFORMATION
INDEPENDENT ACCOUNTANTS. On January 21, 2005, the Audit Committee of the
Board, consisting of those Directors who are not "interested persons" (as
defined in the 1940 Act), selected KPMG LLP ("KPMG"), 99 High Street, Boston,
Massachusetts 02110-2371, as independent accountants for the Fund for the Fund's
fiscal year ending November 30, 2005. The selection of KPMG was ratified by the
entire Board. KPMG also served as independent accountants for the Fund for the
Fund's fiscal year ending November 30, 2004. A representative of KPMG will not
be present at the Meeting but will be available by telephone and will have an
opportunity to make a statement if the representative so desires and will be
available to respond to appropriate questions.
Set forth below are audit fees and non-audit related fees billed to the
Fund for professional services received from KPMG for the Fund's fiscal years
ended November 30, 2003 and 2004, respectively.
Fiscal Year Ended Audit Fees Audit-Related Fees* Tax Fees** All Other Fees
11/30/2003 $22,500 $16,000 $5,600 $5,000+
11/30/2004 $23,600 $16,800 $ 5,850 $ 0
* "Audit-Related Fees" are those fees billed to the Fund by KPMG in
connection with their agreed-upon procedures reports under the Fund's
Articles Supplementary. Such reports are required quarterly by Moody's
Investor Service, Inc. and Standard & Poor's in connection with maintaining
public ratings for the Fund's AMP Shares.
** "Tax Fees" are those fees billed to each Fund by KPMG in connection with
tax consulting services, including primarily the review of each Fund's
income tax returns.
+ This fee relates to services provided by KPMG in connection with a
registration statement filed by the Fund in June 2003.
The Audit Committee Charter requires that the Audit Committee pre-approve
all audit and non-audit services to be provided by the auditors to the Fund, and
all non-audit services to be provided by the auditors to the Fund's investment
adviser and any service providers controlling, controlled by or under common
control with the Funds' investment adviser ("affiliates") that provide on-going
services to each Fund, if the engagement relates directly to the operations and
financial reporting of each Fund, or to establish detailed pre-approval policies
and procedures for such services in accordance with applicable laws. All of the
audit, audit-related and tax services described above for which KPMG billed the
Fund fees for the fiscal years ended November 30, 2003 and November 30, 2004
were pre-approved by the Audit Committee.
KPMG has informed the Fund that it has no direct or indirect financial
interest in the Fund. For the Fund's fiscal year ended November 30, 2004, KPMG
did not provide any non-audit services or bill any fees for such services to the
Funds' investment adviser or any affiliates thereof that provide services to the
Fund. The Horejsi Affiliates have engaged KPMG from time to time in the past to
provide various accounting, auditing and consulting services and currently
engages KPMG as a consultant with respect to ongoing tax related issues. For the
twelve months ended November 30, 2003, the Horejsi Affiliates paid $875 to KPMG
for their services. For the twelve months ended November 30, 2004, the Horejsi
Affiliates paid $3,800 to KPMG for their services. The Audit Committee has
considered and concluded that the provision of non-audit services is compatible
with maintaining the auditors' independence.
SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE. Section 16(a) of
the 1934 Act and Section 30(h) of the 1940 Act requires the Fund's Directors and
officers, persons affiliated with the Fund's investment advisers, and persons
who own more than 10% of a registered class of the Fund's securities, to file
reports of ownership and changes of ownership with the SEC and the New York
Stock Exchange. Directors, officers and greater-than-10% stockholders are
required by SEC regulations to furnish the Fund with copies of all Section 16(a)
forms they file. Based solely upon the Fund's review of the copies of such forms
it receives and written representations from such persons, the Fund believes
that through the date hereof all such filing requirements applicable to such
persons were complied with.
BROKER NON-VOTES AND ABSTENTIONS. An uninstructed proxy for shares held by
brokers or nominees as to which (i) instructions have not been received from the
beneficial owners or the persons entitled to vote and (ii) the broker or nominee
does not have discretionary voting power on a particular matter is a broker
"non-vote". Proxies that reflect abstentions or broker non-votes (collectively
"abstentions") will be counted as shares that are present and entitled to vote
on the matter for purposes of determining the presence of a quorum. In
circumstances where the vote to approve a matter is a percentage of votes cast
(e.g., Proposal y1), abstentions have no effect because they are not a vote
cast. Thus, they will be disregarded in determining the "votes cast" on the
particular issue. However, with respect to Proposals y2 and 3, where the vote
required to approve the matter is the affirmative vote of the holders of a
percentage of the total number of votes entitled to be cast, an abstention will
have the effect of a vote "against" the respective proposals.
OTHER MATTERS TO COME BEFORE THE MEETING
The Fund does not intend to present any other business at the Meeting, nor
is it aware that any stockholder intends to do so. If, however, any other
matters are properly brought before the Meeting, the persons named in the
accompanying form of proxy will vote thereon in accordance with their
discretion.
--------------------------------------------------------------------------------
IT IS IMPORTANT THAT PROXIES BE RETURNED PROMPTLY. STOCKHOLDERS WHO DO NOT
EXPECT TO ATTEND THE MEETING ARE THEREFORE URGED TO COMPLETE, SIGN, DATE AND
RETURN ALL PROXY CARDS AS SOON AS POSSIBLE IN THE ENCLOSED POSTAGE-PAID
ENVELOPE.
--------------------------------------------------------------------------------
If you have any questions concerning the accompanying Proxy
Statement or need help voting your shares, please call:
[GRAPHIC OMITTED]
MACKENZIE PARTNERS, INC.
105 Madison Avenue
New York, New York 10016
(212) 929-5500 (Call Collect)
Email: proxy@mackenziepartners.com
or
CALL TOLL-FREE: (800) 322-2885
PROXY
BOULDER TOTAL RETURN FUND, INC.
PROXY SOLICITED BY THE BOARD OF DIRECTORS
The undersigned holder of shares of Common Stock of Boulder Total Return Fund,
Inc., a Maryland corporation (the "Fund"), hereby appoints Stephen C. Miller,
Carl D. Johns, and Candace C. Cavalier, or any of them, as proxies for the
undersigned, with full powers of substitution in each of them, to attend the
Annual Meeting of Stockholders (the "Annual Meeting") to be held at the
Millennium Resort McCormick Ranch, 7401 N. Scottsdale Road, Scottsdale, Arizona
at 9:00 a.m. Mountain Standard Time (local time), on April 26, 2005, and any
adjournments or postponements thereof, to cast on behalf of the undersigned all
votes that the undersigned is entitled to cast at the Annual Meeting and to
otherwise represent the undersigned at the Annual Meeting with all the powers
possessed by the undersigned if personally present at the Meeting. The votes
entitled to be cast will be cast as instructed below. If this Proxy is executed
but no instruction is given, the votes entitled to be cast by the undersigned
will be cast "FOR" each of the nominees for Director and "FOR" each of the other
proposals described in the Proxy Statement. The undersigned hereby acknowledges
receipt of the Notice of Annual Meeting and Proxy Statement. In their
discretion, the proxies are authorized to vote upon such other business as may
properly come before the Meeting. A majority of the proxies present and acting
at the Annual Meeting in person or by substitute (or, if only one shall be so
present, then that one) shall have and may exercise all of the power and
authority of said proxies hereunder. The undersigned hereby revokes any proxy
previously given.
CONTINUED AND TO BE SIGNED ON REVERSE SIDE
Please indicate your vote by an "X" in the appropriate box below.
This proxy, if properly executed, will be voted in the manner directed by the
undersigned stockholder. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED FOR
PROPOSALs 1 THROUGH 3.
Please refer to the Proxy Statement for a discussion of the Proposals.
1 Election of Directors: Nominees are Joel W. Looney, Alfred G. Aldridge,
Jr., and Dr. Dean L. Jacobson.
FOR____ WITHHOLD___ FOR ALL EXCEPT ___
Instruction: If you do not wish your shares voted "for" a particular nominee,
mark the "For All Except" box and strike a line through the name(s) of the
nominee(s). Your shares will be voted "For" the remaining nominee(s).
THE BOARD OF DIRECTORS RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" ELECTION OF
ALL THE NOMINEES
------------- ----------------------------------------------------------- ------
STOCKHOLDERS MAY VOTE WITH RESEPCT TO ALL OF THE PROPOSALS 2 AND 3 BY MAKING THE
APPROPRIATE OMNIBUS SELECTION TO THE RIGHT
FOR___ AGAINST ___ ABSTAIN ___
------------------------------------------------------------------------- ------
2 An amendment to the Fund's charter (the "Charter") to establish the number
of Directors at five (5).
FOR___ AGAINST ___ ABSTAIN ___
THE BOARD OF DIRECTORS, INCLUDING ALL OF THE INDEPENDENT DIRECTORS, UNANIMOUSLY
RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" THIS PROPOSAL, AS MORE FULLY
DESCRIBED IN THE PROXY STATEMENT
3 An amendment to the Charter changing the voting standard for stockholders
to adopt, alter, amend or repeal Bylaws to the affirmative vote of a
majority of all the votes entitled to be cast on the matter.
FOR___ AGAINST ___ ABSTAIN ___
THE BOARD OF DIRECTORS, INCLUDING ALL OF THE INDEPENDENT DIRECTORS, UNANIMOUSLY
RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" THIS PROPOSAL, AS MORE FULLY
DESCRIBED IN THE PROXY STATEMENT
4 TO VOTE AND OTHERWISE REPRESENT THE UNDERSIGNED ON ANY OTHER MATTER THAT
MAY PROPERLY COME BEFORE THE ANNUAL MEETING OR ANY ADJOURNMENT OR
POSTPONEMENT THEREOF IN THE DISCRETION OF THE PROXY HOLDER
MARK HERE FOR ADDRESS CHANGE AND NOTE AT LEFT ____
PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE.
NOTE: Please sign exactly as your name appears on this Proxy. If joint owners,
EACH should sign this Proxy. When signing as attorney, executor, administrator,
trustee, guardian or corporate officer, please give your full title.
Signature:
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Date:
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Signature:
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Date:
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[AMPS PROXY CARD]
PROXY
BOULDER TOTAL RETURN FUND, INC.
PROXY SOLICITED BY THE BOARD OF DIRECTORS
The undersigned holder of shares of the Taxable Auction Market Preferred Stock
("AMPS") of Boulder Total Return Fund, Inc., a Maryland corporation (the
"Fund"), hereby appoints Stephen C. Miller, Carl D. Johns, and Candace C.
Cavalier, or any of them as proxies for the undersigned, with full powers of
substitution in each of them, to attend the Annual Meeting of Stockholders (the
"Annual Meeting") to be held at the Millennium Resort McCormick Ranch, 7401 N.
Scottsdale Road, Scottsdale, Arizona at 9:00 a.m. Mountain Standard Time (local
time), on April 26, 2005, and any adjournments or postponements thereof, to cast
on behalf of the undersigned all votes that the undersigned is entitled to cast
at the Annual Meeting and to otherwise represent the undersigned at the Annual
Meeting with all the powers possessed by the undersigned if personally present
at the Meeting. The votes entitled to be cast will be cast as instructed below.
If this Proxy is executed but no instruction is given, the votes entitled to be
cast by the undersigned will be cast "FOR" each of the nominees for Director and
"FOR" each of the other proposals described in the Proxy Statement. The
undersigned hereby acknowledges receipt of the Notice of Annual Meeting and
Proxy Statement. In their discretion, the proxies are authorized to vote upon
such other business as may properly come before the Meeting. A majority of the
proxies present and acting at the Annual Meeting in person or by substitute (or,
if only one shall be so present, then that one) shall have and may exercise all
of the power and authority of said proxies hereunder. The undersigned hereby
revokes any proxy previously given.
CONTINUED AND TO BE SIGNED ON REVERSE SIDE
Please indicate your vote by an "X" in the appropriate box below.
This proxy, if properly executed, will be voted in the manner directed by the
undersigned stockholder. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED FOR
PROPOSALs 1 THROUGH 3.
Please refer to the Proxy Statement for a discussion of the Proposals.
1 Election of Directors: Nominees are Susan L. Ciciora and Richard I. Barr.
FOR____ WITHHOLD___ FOR ALL EXCEPT ___
Instruction: If you do not wish your shares voted "for" a particular nominee,
mark the "For All Except" box and strike a line through the name(s) of the
nominee(s). Your shares will be voted "For" the remaining nominee(s).
THE BOARD OF DIRECTORS RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" ELECTION OF
ALL THE NOMINEES
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STOCKHOLDERS MAY VOTE WITH RESEPCT TO ALL OF THE PROPOSALS 2 AND 3 BY MAKING THE
APPROPRIATE OMNIBUS SELECTION TO THE RIGHT
FOR___ AGAINST ___ ABSTAIN ___
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2 An amendment to the Fund's charter (the "Charter") to establish the number
of Directors at five (5).
FOR___ AGAINST ___ ABSTAIN ___
THE BOARD OF DIRECTORS, INCLUDING ALL OF THE INDEPENDENT DIRECTORS, UNANIMOUSLY
RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" THIS PROPOSAL, AS MORE FULLY
DESCRIBED IN THE PROXY STATEMENT
3 An amendment to the Charter changing the voting standard for stockholders
to adopt, alter, amend or repeal Bylaws to the affirmative vote of a
majority of all the votes entitled to be cast on the matter.
FOR___ AGAINST ___ ABSTAIN ___
THE BOARD OF DIRECTORS, INCLUDING ALL OF THE INDEPENDENT DIRECTORS, UNANIMOUSLY
RECOMMENDS THAT THE STOCKHOLDERS VOTE "FOR" THIS PROPOSAL, AS MORE FULLY
DESCRIBED IN THE PROXY STATEMENT
4 TO VOTE AND OTHERWISE REPRESENT THE UNDERSIGNED ON ANY OTHER MATTER THAT
MAY PROPERLY COME BEFORE THE ANNUAL MEETING OR ANY ADJOURNMENT OR
POSTPONEMENT THEREOF IN THE DISCRETION OF THE PROXY HOLDER
MARK HERE FOR ADDRESS CHANGE AND NOTE AT LEFT ____
PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE.
NOTE: Please sign exactly as your name appears on this Proxy. If joint owners,
EACH should sign this Proxy. When signing as attorney, executor, administrator,
trustee, guardian or corporate officer, please give your full title.
Signature:
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Date:
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Signature:
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Date:
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