<SEC-DOCUMENT>0001133228-25-013216.txt : 20251204
<SEC-HEADER>0001133228-25-013216.hdr.sgml : 20251204
<ACCEPTANCE-DATETIME>20251204155304
ACCESSION NUMBER:		0001133228-25-013216
CONFORMED SUBMISSION TYPE:	40-APP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20251204
DATE AS OF CHANGE:		20251204

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			JAPAN SMALLER CAPITALIZATION FUND INC
		CENTRAL INDEX KEY:			0000859796
		ORGANIZATION NAME:           	
		EIN:				133553469
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			0228

	FILING VALUES:
		FORM TYPE:		40-APP
		SEC ACT:		
		SEC FILE NUMBER:	812-15948
		FILM NUMBER:		251549302

	BUSINESS ADDRESS:	
		STREET 1:		WORLDWIDE PLAZA
		STREET 2:		309 WEST 49TH STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		8008330018

	MAIL ADDRESS:	
		STREET 1:		WORLDWIDE PLAZA
		STREET 2:		309 WEST 49TH STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	JAPAN OTC EQUITY FUND INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>40-APP
<SEQUENCE>1
<FILENAME>jscfi-efp20586_40app.htm
<DESCRIPTION>JAPAN SMALLER CAPITALIZATION FUND, INC - 40-APP
<TEXT>
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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">EXPEDITED REVIEW REQUESTED UNDER 17 C.F.R. 270.0-5(d)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">UNITED STATES OF AMERICA BEFORE THE<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
WASHINGTON, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">IN THE MATTER OF:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">JAPAN SMALLER CAPITALIZATION FUND, INC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 300pt; text-indent: 0pt">&#9;APPLICATION PURSUANT TO SECTION 6(c) OF THE &#9;INVESTMENT COMPANY
ACT OF 1940, AS AMENDED &#9;(THE &ldquo;ACT&rdquo;) FOR AN ORDER GRANTING &#9;EXEMPTIONS FROM SECTION 19(b) OF THE ACT AND &#9;RULE 19b-1
THEREUNDER</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Investment Company Act of 1940 File No. 812-</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">PLEASE SEND ALL COMMUNICATIONS AND ORDERS TO:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Jesse C. Kean<BR>
Sidley Austin LLP<BR>
787 7th Avenue<BR>
New York, NY 10019<BR>
(212) 839-8615<BR>
jkean@sidley.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0pt">&nbsp;</P>


<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">WITH A COPY TO:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Neil Daniele<BR>
C/O Japan Smaller Capitalization Fund, Inc.<BR>
Worldwide Plaza<BR>
309 West 49th Street<BR>
New York, NY 10019</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">This Application (including Exhibits) consists of 44
pages<BR>
The Exhibit Index is on page 13<BR>
As filed with the U.S. Securities and Exchange Commission on December 4, 2025</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">I.&nbsp;INTRODUCTION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Japan Smaller Capitalization Fund, Inc. (the &ldquo;Fund&rdquo;)
and Nomura Asset Management U.S.A. Inc. (&ldquo;NAM-U.S.A.&rdquo; and, together with the Fund, the &ldquo;Applicants&rdquo;) hereby submit
this application for an order (the &ldquo;Order&rdquo;) of the Securities and Exchange Commission (the &ldquo;Commission&rdquo;) pursuant
to Section 6(c) of the Investment Company Act of 1940, as amended (the &ldquo;1940 Act&rdquo;), providing the Fund and each other closed-end
management investment company registered under the 1940 Act advised or to be advised in the future by NAM-U.S.A., or by an entity controlling,
controlled by or under common control (within the meaning of Section 2(a)(9) of the 1940 Act) with NAM-U.S.A. (including any successor
in interest<SUP>1</SUP>) (each such entity, including NAM-U.S.A., the &ldquo;Adviser&rdquo;) that in the future seeks to rely on the Order
(such investment companies, together with the Fund, are collectively referred to herein as the &ldquo;Funds&rdquo; and each separately
as a &ldquo;Future Fund&rdquo;), an exemption from the provisions of Section 19(b) of the 1940 Act and Rule 19b-1 thereunder, as more
fully set forth below (the &ldquo;Application&rdquo;).<SUP>2</SUP> The Fund and the Future Funds are hereinafter collectively referred
to as the &ldquo;Funds&rdquo; and separately as a &ldquo;Fund&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">II.&nbsp;THE APPLICANTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Fund is organized as a Maryland corporation, which is registered
under the 1940 Act as a diversified, closed-end management investment company and commenced operations on March 21, 1990. The Fund&rsquo;s
common shares are listed on the New York Stock Exchange, a national securities exchange as defined in Section 2(a)(26) of the 1940 Act.
Although the Fund does not currently intend to issue preferred shares, the board of directors of the Fund may authorize the issuance of
preferred shares in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Fund&rsquo;s investment objective is to provide shareholders
with long-term capital appreciation and to invest, under normal circumstances, at least 80% of its total assets in smaller capitalization
Japanese equity securities traded on the Tokyo and Nagoya Stock Exchanges, and other indices or markets determined by NAM-U.S.A. to be
appropriate indices or markets for smaller capitalization companies in Japan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">NAM-U.S.A., with offices at Worldwide Plaza, 309 West 49th Street,
New York, NY 10019, is registered with the Commission as an investment adviser under the Investment Advisers Act of 1940, as amended,
and serves as the Fund&rsquo;s manager. NAM-U.S.A. is a wholly-owned subsidiary of Nomura Asset Management Co., Ltd. (&ldquo;NAM Tokyo&rdquo;).
NAM Tokyo serves as the Fund&rsquo;s investment adviser. Subject to the oversight of the board of directors of the Fund, NAM Tokyo is
responsible for managing the investment activities of the Fund and the Fund&rsquo;s business affairs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">III.&nbsp;REQUEST FOR EXEMPTIVE
RELIEF</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Section 19(b) of the 1940 Act provides that it shall be unlawful
in contravention of such rules, regulations, or orders as the Commission may prescribe as necessary or appropriate in the public interest
or for the protection of investors for any registered investment company to distribute long-term capital gains, as defined in the Internal
Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;), more often than once every twelve months. Rule 19b-1 under the 1940 Act provides
that no registered investment company which is a &ldquo;regulated investment company&rdquo; as defined in Section 851 of the Code may
make more than (i) one &ldquo;capital gain dividend,&rdquo; as defined in Section 852(b)(3)(C) of the Code, in any one taxable year of
the company, (ii) one additional capital gain distribution made in whole or in part to avoid payment of excise tax under Section 4982
of the Code, plus (iii) one supplemental capital gain dividend pursuant to Section 855 of the Code (provided that it does not exceed 10%
of the total amount distributed for the taxable year).</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>1</SUP> For the purposes of the requested order,
&ldquo;successor&rdquo; is limited to an entity that results from a reorganization into another jurisdiction or a change in the type
of business organization.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>2</SUP> The only registered closed-end investment company that currently
intends to rely on the Order has been named as an Applicant. Any Fund that may rely on the Order in the future will comply with the terms
and conditions of the Application.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Applicants believe that Rule 19b-1 should be interpreted to permit a Fund
to pay an unlimited number of distributions on its common and preferred shares (if any) so long as it makes the designation necessary
under the Code and Rule 19b-1 to characterize those distributions as &ldquo;capital gain dividends&rdquo; restricted by Rule 19b-1 only
as often as is permitted by Rule 19b-1, even if the Code would then
require retroactively spreading the capital gain resulting from that designation over more than the permissible number of distributions.
However, to obtain certainty for a Fund&rsquo;s distribution policy (the, &ldquo;Distribution Policy&rdquo;), in the absence of such an
interpretation, Applicants hereby request an order pursuant to Section 6(c) of the 1940 Act granting an exemption from Section 19(b) of
the 1940 Act and Rule 19b-1 thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Fund implemented its Distribution Policy while in a substantial
capital loss carryover position and, accordingly, has not paid any &ldquo;capital gain dividends&rdquo; since implementation because those
carryovers have offset the Fund&rsquo;s realized capital gains. The requested relief would allow the Fund to continue its Distribution
Policy once those carryovers are exhausted by permitting distributions of long-term capital gains in the form of &ldquo;capital gain dividends,&rdquo;
as applicable. The Order would permit the Fund to continue making periodic distributions in accordance with the Distribution Policy when
future distributions include net realized long-term capital gains that are not fully offset by capital loss carryover. Specially, the
Order would permit the Fund to make periodic capital gain dividends (as defined in Section 852(b)(3)(C) of the Code) that include long-term
capital gains as frequently as twelve times in any one taxable year in respect of its shares of beneficial interest (&ldquo;common shares&rdquo;)
and as often as specified by, or determined in accordance with the terms of, any preferred shares issued by the Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">IV.&nbsp;REPRESENTATIONS OF
APPLICANTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Fund&rsquo;s Distribution Policy has been publicly disclosed
and implemented. The Fund is now making regular periodic distributions to common shareholders in accordance with its Distribution Policy.
To date, these distributions have been funded by the Fund&rsquo;s net investment income, and realized net long-term capital gains have
been entirely offset by the Fund&rsquo;s capital loss carryover, such that no net realized long-term capital gains have been distributed
in the form of &ldquo;capital gain dividends&rdquo;. The exemptive relief sought by this Application is intended to permit the Fund to
continue its Distribution Policy once the Fund&rsquo;s capital loss carryovers are exhausted, at which point future distributions under
the Policy may include net realized long-term capital gains in the form of &ldquo;capital gain dividends&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Prior to a Fund&rsquo;s implementing a Distribution Policy, in reliance
on the Order, the board of directors or trustees (the &ldquo;Board&rdquo;) of each Fund seeking to rely on the Order, including a majority
of the directors or trustees who are not interested persons of the Fund, as defined in Section 2(a)(19) of the 1940 Act (the &ldquo;Independent
Board Members&rdquo;), will request, or requested, as the case may be, and the Adviser will provide, or provided, as applicable, such
information as is, or was, reasonably necessary to make an informed determination of whether the Board should adopt a proposed Distribution
Policy. In particular, the Board and the Independent Board Members will review, or reviewed, as the case may be, information regarding
(i) the purpose and terms of the proposed Distribution Policy; (ii) the likely effects of the proposed Distribution Policy on the Fund&rsquo;s
long-term total return (in relation to market price and net asset value per share of common shares (&ldquo;NAV&rdquo;)); (iii) the expected
relationship between the Fund&rsquo;s distribution rate on its common shares under the proposed Distribution Policy and the Fund&rsquo;s
total return (in relation to NAV); (iv) whether the rate of distribution is anticipated to exceed the Fund&rsquo;s expected total return
in relation to its NAV; and (v) any foreseeable material effects of the proposed Distribution Policy on the Fund&rsquo;s long-term total
return (in relation to market price and NAV).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Independent Board Members also considered, or will consider,
as applicable, what conflicts of interest the Adviser and the affiliated persons of the Adviser and the Fund might have with respect to
the adoption or implementation of the proposed Distribution Policy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Following this review, the Board, including the Independent Board
Members, of each Fund will, before adopting or implementing any proposed Distribution Policy, make a determination that the proposed Distribution
Policy is consistent with the Fund&rsquo;s investment objective(s) and in the best interests of the holders of the Fund&rsquo;s common
shares. The Distribution Policy will be consistent with the Fund&rsquo;s policies and procedures and will be described in the Fund&rsquo;s
registration statement.</P>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In addition, in connection with the implementation of the Distribution
Policy, the Board also adopted policies and procedures (the &ldquo;Section 19 Compliance Policies&rdquo;) pursuant to Rule 38a-1 under
the 1940 Act that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">1.&nbsp;are reasonably designed
to ensure that all notices required to be sent to the Fund&rsquo;s shareholders pursuant to Section 19(a) of the 1940 Act, Rule 19a-1
thereunder, and by condition 4 of Part VI below (each, a &ldquo;19(a) Notice&rdquo;) include the disclosure required by Rule 19a-1 and
by condition 2(a) of Part VI below, and that all other written communications by the Fund or its agents regarding distributions under
the Distribution Policy include the disclosure required by condition 3(a) of Part VI below; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">2.&nbsp;require the Fund to
keep records that demonstrate its compliance with all of the conditions of the Order and that are necessary for the Fund to form the basis
for, or demonstrate the calculation of, the amounts disclosed in its 19(a) Notices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The records of the actions of the Board of each Fund will summarize
the basis for the Board&rsquo;s approval of the Distribution Policy, including its consideration of the factors described above. These
records will be maintained for a period of at least six years from the date of the applicable meeting, the first two years in an easily
accessible place, or for such longer period as may otherwise be required by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Generally, the purpose of a Distribution Policy would be to permit
a Fund to distribute periodically, over the course of each year, an amount closely approximating the total taxable income of the Fund
during the year through distributions in relatively equal amounts (plus any required special distributions) that are composed of payments
received from portfolio companies, supplemental amounts generally representing realized capital gains, or possibly, returns of capital
that may represent unrealized capital gains. The Fund seeks to establish a distribution rate that approximates the Fund&rsquo;s projected
total return that can reasonably be expected to be generated by the Fund over an extended period of time, although the distribution rate
will not be solely dependent on the amount of income earned or capital gains realized by the Fund for the year. Under the Distribution
Policy of a Fund, the Fund would distribute periodically (as frequently as twelve times in any taxable year) to its respective common
shareholders a fixed percentage of the market price of the Fund&rsquo;s common shares at a particular point in time or a fixed percentage
of NAV at a particular time or a fixed amount per share of common shares, any of which may be adjusted from time to time. It is anticipated
that under a Distribution Policy, the minimum annual distribution rate with respect to the Fund&rsquo;s common shares would be independent
of the Fund&rsquo;s performance during any particular period but would be expected to correlate with the Fund&rsquo;s performance over
time. Except for extraordinary distributions and potential increases or decreases in the final dividend periods in light of the Fund&rsquo;s
performance for an entire calendar year and to enable the Fund to comply with the distribution requirements of Subchapter M of the Code
for the calendar year each distribution on the Fund&rsquo;s common shares would be at the stated rate then in effect. The Board will periodically
review the amount of potential distributions in light of the investment experience of the Fund and may modify or terminate a Distribution
Policy at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">V.&nbsp;JUSTIFICATION FOR REQUESTED
RELIEF</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Section 6(c) of the 1940 Act provides that the Commission may exempt
any person, security, or transaction from any provision of the 1940 Act or from any rule or regulation thereunder, if and to the extent
that the exemption is necessary or appropriate in the public interest and consistent with the protection of investors and the purposes
fairly intended by the policy and provisions of the 1940 Act. For the reasons set forth below, Applicants submit that the requested exemption
from Section 19(b) of the 1940 Act and Rule 19b-1 thereunder would be consistent with the standards set forth in Section 6(c) of the 1940
Act and in the best interests of the Funds and their respective shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">A.&nbsp;Receipt of the Order
would serve shareholder interests</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Fund implemented its Distribution Policy while in a substantial capital
loss carryover position and, accordingly, has not paid any &ldquo;capital gain dividends&rdquo; since implementation because those carryovers
have offset the Fund&rsquo;s realized capital gains. The requested relief would allow the Fund to continue its Distribution Policy once
those carryovers are exhausted by permitting distributions of long-term capital gains in the form of &ldquo;capital gain dividends,&rdquo;
as applicable. Applicants believe that closed-end fund investors may prefer an investment vehicle that provides regular current income
through fixed distribution policies that would be available through a Distribution Policy. Allowing a Distribution Policy to operate in
the manner described in this Application would help fill current investor demand and foster competition in the registered fund market.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">An exemption from Rule 19b-1 would benefit shareholders in another
way. Common shares of closed-end funds often trade in the marketplace at a discount to their NAV. Applicants believe that this discount
may be reduced if a Fund is permitted to pay relatively frequent dividends on its common shares at a consistent rate, whether or not those
dividends contain an element of long-term capital gains. Any reduction in the discount at which the Fund&rsquo;s common shares trade in
the market would benefit the holders of the Fund&rsquo;s common shares along with the Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">B.&nbsp;The Fund&rsquo;s shareholders
would receive information sufficient to clearly inform them of the nature of the distributions they are receiving</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">One of the concerns leading to the enactment of Section 19(b) and
adoption of Rule 19b-1 was that shareholders might be unable to distinguish between frequent distributions of capital gains and dividends
from investment income.<SUP>3</SUP> However, Rule 19a-1 under the 1940 Act effectively addresses this concern by requiring that distributions
(or the confirmation of the reinvestment thereof) estimated to be sourced in part from capital gains or capital be accompanied by a separate
statement showing the sources of the distribution (e.g., estimated net income, net short-term capital gains, net long-term capital gains,
and/or return of capital). The same information will be included in each Fund&rsquo;s annual report to shareholders and on its Internal
Revenue Service (&ldquo;IRS&rdquo;) Form 1099-DIV, which will be sent to each common and preferred shareholder who received distributions
during a particular year (including shareholders who have sold shares during the year).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">In addition, each of the Funds will make the additional disclosures
required by the conditions set forth in Part VI below, and each of them will adopt compliance policies and procedures in accordance with
Rule 38a-1 under the 1940 Act to ensure that all required notices and disclosures are sent to shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The information required by Section 19(a), Rule 19a-1, the Distribution
Policy, the Section 19 Compliance Policies, and the conditions listed below in Part VI will help to ensure that each Fund&rsquo;s shareholders
are provided sufficient information to understand that their periodic distributions are not tied to the Fund&rsquo;s net investment income
(which for this purpose is the Fund&rsquo;s taxable income other than from capital gains) and realized capital gains to date, and may
not represent yield or investment return. Accordingly, subjecting the Funds to Section 19(b) and Rule 19b-1 would afford shareholders
no extra protection. In addition, the Funds will undertake to request intermediaries, or their agent(s), to forward 19(a) Notices to their
customers and to reimburse them for the costs of forwarding. Such forwarding may occur in any manner permitted by statute, rule, or order
or by the staff of the Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">C.&nbsp;Under certain circumstances,
Rule 19b-1 gives rise to improper influence on portfolio management decisions, with no offsetting benefit to shareholders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Rule 19b-1, when applied to a Distribution Policy, actually gives
rise to one of the concerns that Rule 19b-1 was intended to avoid: inappropriate influence on portfolio management decisions. A registered
fund that pays long-term capital gains distributions only once per year in accordance with Rule 19b-1 impose no pressure on management
to realize capital gains at any time when purely investment considerations do not dictate doing so. In the absence of an exemption from
Rule 19b-1, the adoption of a periodic distribution plan imposes pressure on management (i) not to realize any net long-term capital gains
until the point in the year that the fund can pay all of its remaining distributions in accordance with Rule 19b-1 and (ii) not to realize
any long-term capital gains during any particular year in excess of the amount of the aggregate pay-out for the year (since as a practical
matter excess gains must be distributed and accordingly would not be available to satisfy pay-out requirements in following years), notwithstanding
that purely investment considerations might favor realization of long-term gains at different times.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">No purpose is served by the distortion in the normal operation of a periodic
distribution plan required in order to comply with Rule 19b-1. There is no benefit in requiring any registered fund that adopts a periodic
distribution plan either to retain (and pay taxes on) long-term capital gains (with the resulting additional tax return complexities for
the fund&rsquo;s shareholders) or to avoid designating its distributions of long-term gains as capital gains dividends for tax purposes
(thereby avoiding a Rule 19b-1 problem but providing distributions taxable at ordinary income rates rather than the much lower long-term
capital gains rates). The desirability of avoiding these anomalous results creates pressure to limit the realization of long-term capital gains that
otherwise would be taken for purely investment considerations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>3</SUP> <I>See</I> Securities and Exchange Commission 1966 Report
to Congress on Investment Company Growth (H.R. Rep. No. 2337, 89th Cong. 2d Sess. 190-95 (1966)); S. Rep. No. 91-184, 91st Cong., 1st
Sess. 29 (1969); H.R. Rep. No. 91-1382, 91st Cong., 2d Sess. 29 (1970).</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Order requested by Applicants would minimize these anomalous
effects of Rule 19b-1 by enabling the Funds to realize long-term capital gains as often as investment considerations dictate without fear
of violating Rule 19b-1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">D.&nbsp;Other concerns leading
to adoption of Rule 19b-1 are not applicable</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Another concern that led to the enactment of Section 19(b) of the
1940 Act and adoption of Rule 19b-1 was that frequent capital gains distributions could facilitate improper fund share sales practices,
including, in particular, the practice of urging an investor to purchase shares of a fund on the basis of an upcoming capital gains dividend
(&ldquo;selling the dividend&rdquo;), where the dividend would result in an immediate corresponding reduction in NAV and would be in effect
a taxable return of the investor&rsquo;s capital. Applicants submit that this concern should not apply to closed-end investment companies,
such as the Funds, that do not continuously distribute shares. Furthermore, if the underlying concern extends to secondary market purchases
of shares of closed-end funds that are subject to a large upcoming capital gains dividend, adoption of a periodic distribution plan may
help minimize the concern by avoiding, through periodic distributions, any buildup of large end-of-the-year distributions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Applicants also submit that the &ldquo;selling the dividend&rdquo;
concern is not applicable to preferred shares, which entitles a holder to no more than a specified periodic dividend and, like a debt
security, is initially sold at a price based upon its liquidation preference, credit quality, dividend rate and frequency of payment.
Investors buy preferred shares for the purpose of receiving specific payments at the frequency bargained for, and any application of Rule
19b-1 to preferred shares would be contrary to the expectation of investors. There is also currently a tax rule that provides that any
loss realized by a shareholder upon sale of shares of a regulated investment company that were held for six months or less will be treated
as a long-term capital loss, to the extent of any long-term capital gains paid on such shares, to avoid the selling of dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">E.&nbsp;Further limitations
of Rule 19b-1</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Subparagraphs (a) and (f) of Rule 19b-1 limit the number of &ldquo;capital
gains dividends,&rdquo; as defined in Section 852(b)(3)(C) of the Code, that a registered fund may make with respect to any one taxable
year to one, plus a supplemental distribution made pursuant to Section 855 of the Code not exceeding 10% of the total amount distributed
for the year, plus one additional capital gain dividend made in whole or in part to avoid the excise tax under Section 4982 of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Applicants assert that by limiting the number of capital gain dividends
that a Fund may make with respect to any one year, Rule 19b-1 may prevent the normal and efficient operation of a periodic distribution
plan whenever that Fund&rsquo;s realized net long-term capital gains in any year exceed the total of the periodic distributions that may
include such capital gains under the rule. Rule 19b-1 thus may force the fixed regular periodic distributions to be funded with returns
of capital<SUP>4</SUP> (to the extent net investment income and realized short term capital gains are insufficient to fund the distribution),
even though realized net long-term capital gains otherwise would be available.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">To distribute all of a Fund&rsquo;s long-term capital gains within
the limits in Rule 19b-1, a Fund may be required to make total distributions in excess of the annual amount called for by its periodic
distribution plan or to retain and pay taxes on the excess amount. Applicants believe that the application of Rule 19b-1 to a Fund&rsquo;s
periodic distribution plan may create pressure to limit the realization of long-term capital gains based on considerations unrelated to
investment goals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Revenue Ruling 89-81<SUP>5</SUP> under the Code requires that a fund that
seeks to qualify as a regulated investment company under the Code and that has both common shares and preferred shares outstanding designate
the types of income, (e.g., investment income and capital gains), in the same proportion as the total distributions distributed to each
class for the tax year. To satisfy the proportionate designation requirements of Revenue Ruling 89-81, whenever a fund</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>4</SUP> These would be returns of capital for financial accounting
purposes and not for tax accounting purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>5</SUP> 1989-1 C.B. 226.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">has realized a long-term capital gain with respect to a given tax
year, the fund must designate the required proportionate share of such capital gain to be included in common and preferred shares dividends.
Although Rule 19b-1 allows a fund some flexibility with respect to the frequency of capital gains distributions, a fund might use all
of the exceptions available under Rule 19b-1 for a tax year and still need to distribute additional capital gains allocated to the preferred
shares to comply with Revenue Ruling 89-81.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The potential abuses addressed by Section 19(b) and Rule 19b-1 do
not arise with respect to preferred shares issued by a closed-end fund. Such distributions generally are either fixed or are determined
in periodic auctions or remarketings or are periodically reset by reference to short-term interest rates rather than by reference to performance
of the issuer, and Revenue Ruling 89-81 determines the proportion of such distributions that are composed of the long-term capital gains.
The Applicants also submit that the &ldquo;selling the dividend&rdquo; concern is not applicable to preferred shares, which entitles a
holder to no more than a periodic dividend at a fixed rate or the rate determined by the market, and, like a debt security, is priced
based upon its liquidation value, dividend rate, credit quality, and frequency of payment. Investors buy preferred shares for the purpose
of receiving payments at the frequency bargained for and do not expect the liquidation value of their shares to change.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The proposed Order will assist the Funds in avoiding these Rule
19b-1 problems.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">F.&nbsp;General</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The relief requested is that the Commission permit the Funds to
make periodic distributions in respect of their common shares as frequently as twelve times in any one taxable year and in respect of
their preferred shares as specified by or determined in accordance with the terms thereof. Granting this relief would provide the Funds
with flexibility in meeting investor interest in receiving more frequent distributions. Implementation of the relief would actually ameliorate
the concerns that gave rise to Section 19(b) and Rule 19b-1 and help avoid the &ldquo;selling of dividends&rdquo; problem, which Section
19(b) and Rule 19b-1 are not effective in preventing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The potential issues under Rule 19b-1 are not relevant to distributions
on preferred shares. Not only are such distributions fixed or determined by the market rather than by reference to the performance of
the issuer but also the long-term capital gain component is mandated by the IRS to be the same proportion as the proportion of long-term
gain dividends bears to the total distributions in respect of the common shares and consequently the long-term gain component cannot even
be known until the end of the fund&rsquo;s fiscal year. In these circumstances it would be very difficult for any of the potential abuses
reflected in Rule 19b-1&rsquo;s restrictions to occur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">In summary, Rule 19b-1, in the circumstances referred to above,
is likely to distort the effective and proper functioning of a Fund&rsquo;s Distribution Policy and gives rise to the very pressures on
portfolio management decisions that Rule 19b-1 was intended to avoid. These distortions forced by Rule 19b-1 serve no purpose and are
not in the best interests of shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">VI.&nbsp;APPLICANTS&rsquo; CONDITIONS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Applicants agree that, with respect to each Fund seeking to rely
on the Order, the Order will be subject to each of the following conditions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">1.&nbsp;Compliance Review and
Reporting</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Fund&rsquo;s chief compliance officer will: (a) report to the
Fund&rsquo;s Board, no less frequently than once every three months or at the next regularly scheduled quarterly Board meeting, whether
(i) the Fund and NAM-U.S.A. have complied with the conditions of the Order and (ii) a &ldquo;material compliance matter&rdquo; (as defined
in Rule 38a-1(e)(2) under the 1940 Act) has occurred with respect to such conditions; and (b) review the adequacy of the policies and
procedures adopted by the Board no less frequently than annually.</P>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">2.&nbsp;Disclosures to Fund Shareholders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(a)&nbsp;Each 19(a) Notice disseminated
to the holders of the Fund&rsquo;s common shares, in addition to the information required by Section 19(a) and Rule 19a-1:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(i)&nbsp;will provide, in a
tabular or graphical format:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(1)&nbsp;the amount of the distribution,
on a per share of common shares basis, together with the amounts of such distribution amount, on a per share of common shares basis and
as a percentage of such distribution amount, from estimated: (A) net investment income; (B) net realized short-term capital gains; (C)
net realized long-term capital gains; and (D) return of capital or other capital source;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(2)&nbsp;the fiscal year-to-date
cumulative amount of distributions, on a per share of common shares basis, together with the amounts of such cumulative amount, on a per
share of common shares basis and as a percentage of such cumulative amount of distributions, from estimated: (A) net investment income;
(B) net realized short-term capital gains; (C) net realized long-term capital gains; and (D) return of capital or other capital source;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(3)&nbsp;the average annual
total return in relation to the change in NAV for the 5-year period (or, if the Fund&rsquo;s history of operations is less than five years,
the time period commencing immediately following the Fund&rsquo;s first public offering) ending on the last day of the month ended immediately
prior to the most recent distribution record date compared to the current fiscal period&rsquo;s annualized distribution rate expressed
as a percentage of NAV as of the last day of the month prior to the most recent distribution record date; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(4)&nbsp;the cumulative total
return in relation to the change in NAV from the last completed fiscal year to the last day of the month prior to the most recent distribution
record date, compared to the fiscal year-to-date cumulative distribution rate expressed as a percentage of NAV as of the last day of the
month prior to the most recent distribution record date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Such disclosure shall be made in a type size at least as large and
as prominent as the estimate of the sources of the current distribution; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(ii)&nbsp;will include the following
disclosure:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(1)&nbsp;&ldquo;You should not
draw any conclusions about the Fund&rsquo;s investment performance from the amount of this distribution or from the terms of the Fund&rsquo;s
Distribution Policy.&rdquo;;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(2)&nbsp;&ldquo;The Fund estimates
that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return
of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you.
A return of capital distribution does not necessarily reflect the Fund&rsquo;s investment performance and should not be confused with
&lsquo;yield&rsquo; or &lsquo;income&rsquo;&rdquo;;<SUP>6</SUP> and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(3)&nbsp;&ldquo;The amounts
and sources of distributions reported in this 19(a) Notice are only estimates and are not being provided for tax reporting purposes. The
actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund&rsquo;s investment experience during the
remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar
year that will tell you how to report these distributions for federal income tax purposes.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Such disclosure shall be made in a type size at least as large as
and as prominent as any other information in the 19(a) Notice and placed on the same page in close proximity to the amount and the sources
of the distribution.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>6</SUP> The disclosure in this condition 2(a)(ii)(2) will be included
only if the current distribution or the fiscal year-to-date cumulative distributions are estimated to include a return of capital.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(b)&nbsp;On the inside front cover
of each report to shareholders under Rule 30e-1 under the 1940 Act, the Fund will:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(i)&nbsp;describe the terms
of the Distribution Policy (including the fixed amount or fixed percentage of the distributions and the frequency of the distributions);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(ii)&nbsp;include the disclosure
required by condition 2(a)(ii)(1) above;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(iii)&nbsp;state, if applicable,
that the Distribution Policy provides that the Board may amend or terminate the Distribution Policy at any time without prior notice to
Fund shareholders; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(iv)&nbsp;describe any reasonably
foreseeable circumstances that might cause the Fund to terminate the Distribution Policy and any reasonably foreseeable consequences of
such termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(c)&nbsp;Each report provided
to shareholders of a Fund under Rule 30e-1 under the 1940 Act, and each prospectus filed with the Commission on Form N-2 under the 1940
Act, will provide the Fund&rsquo;s total return in relation to changes in NAV in the financial highlights table and in any discussion
about the Fund&rsquo;s total return.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">3.&nbsp;Disclosure to Shareholders,
Prospective Shareholders and Third Parties</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(a)&nbsp;The Fund will include
the information contained in the relevant 19(a) Notice, including the disclosure required by condition 2(a)(ii) above, in any written
communication (other than a communication on Form 1099) about the Distribution Policy or distributions under the Distribution Policy by
the Fund, or agents that the Fund has authorized to make such communication on the Fund&rsquo;s behalf, to any Fund shareholder, prospective
shareholder, or third-party information provider;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(b)&nbsp;The Fund will issue,
contemporaneously with the issuance of any 19(a) Notice, a press release containing the information in the 19(a) Notice and will file
with the Commission the information contained in such 19(a) Notice, including the disclosure required by condition 2(a)(ii) above, as
an exhibit to its next filed Form N-CSR; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(c)&nbsp;The Fund will post
prominently a statement on its (or NAM-U.S.A.&rsquo;s) website containing the information in each 19(a) Notice, including the disclosure
required by condition 2(a)(ii) above, and maintain such information on such website for at least 24 months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">4.&nbsp;Delivery of 19(a) Notices
to Beneficial Owners</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">If a broker, dealer, bank, or other person (&ldquo;financial intermediary&rdquo;)
holds common shares issued by the Fund in nominee name, or otherwise, on behalf of a beneficial owner, the Fund:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(a)&nbsp;will request that the
financial intermediary, or its agent, forward the 19(a) Notice to all beneficial owners of the Fund&rsquo;s shares held through such financial
intermediary;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(b)&nbsp;will provide, in a
timely manner, to the financial intermediary, or its agent, enough copies of the 19(a) Notice assembled in the form and at the place that
the financial intermediary, or its agent, reasonably requests to facilitate the financial intermediary&rsquo;s sending of the 19(a) Notice
to each beneficial owner of the Fund&rsquo;s shares; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(c)&nbsp;upon the request of
any financial intermediary, or its agent, that receives copies of the 19(a) Notice, will pay the financial intermediary, or its agent,
the reasonable expenses of sending the 19(a) Notice to such beneficial owners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">5.&nbsp;Additional Board Determinations
for Funds Whose Common Shares Trade at a Premium</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">If:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(a)&nbsp;The Fund&rsquo;s common shares
have traded on the stock exchange that they primarily trade on at the time in question at an average premium to NAV equal to or greater
than 10%, as determined on the basis of the average of the discount or premium to NAV of the Fund&rsquo;s common shares as of the close
of each trading day over a 12-week rolling period (each such 12-week rolling period ending on the last trading day of each week); and</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(b)&nbsp;The Fund&rsquo;s annualized
distribution rate for such 12-week rolling period, expressed as a percentage of NAV as of the ending date of such 12-week rolling period,
is greater than the Fund&rsquo;s average annual total return in relation to the change in NAV over the 2-year period ending on the last
day of such 12-week rolling period;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">then:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(i)&nbsp;At the earlier of the
next regularly scheduled meeting or within four months of the last day of such 12-week rolling period, the Board, including a majority
of its Independent Board Members:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(1)&nbsp;will request and evaluate,
and NAM-U.S.A. will furnish, such information as may be reasonably necessary to make an informed determination of whether the Distribution
Policy should be continued or continued after amendment;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(2)&nbsp;will determine whether
continuation, or continuation after amendment, of the Distribution Policy is consistent with the Fund&rsquo;s investment objective(s)
and policies and is in the best interests of the Fund and its shareholders, after considering the information in condition 5(b)(i)(1)
above; including, without limitation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(A)&nbsp;whether the Distribution
Policy is accomplishing its purpose(s);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(B)&nbsp;the reasonably foreseeable
material effects of the Distribution Policy on the Fund&rsquo;s long-term total return in relation to the market price and NAV of the
Fund&rsquo;s common shares; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(C)&nbsp;the Fund&rsquo;s current
distribution rate, as described in condition 5(b) above, compared with the Fund&rsquo;s average annual taxable income or total return
over the 2-year period, as described in condition 5(b), or such longer period as the Board deems appropriate; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(3)&nbsp;based upon that determination,
will approve or disapprove the continuation, or continuation after amendment, of the Distribution Policy; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(ii)&nbsp;The Board will record
the information considered by it, including its consideration of the factors listed in condition 5(b)(i)(2) above, and the basis for its
approval or disapproval of the continuation, or continuation after amendment, of the Distribution Policy in its meeting minutes, which
must be made and preserved for a period of not less than six years from the date of such meeting, the first two years in an easily accessible
place.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">6.&nbsp;Public Offerings</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Fund will not make a public offering of the Fund&rsquo;s common
shares other than:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(a)&nbsp;a rights offering below
NAV to holders of the Fund&rsquo;s common shares;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(b)&nbsp;an offering in connection
with a dividend reinvestment plan, merger, consolidation, acquisition, spin off or reorganization of the Fund; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(c)&nbsp;an offering other than
an offering described in conditions 6(a) and 6(b) above, provided that, with respect to such other offering:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(i)&nbsp;the Fund&rsquo;s annualized
distribution rate for the six months ending on the last day of the month ended immediately prior to the most recent distribution record
date,<SUP>7</SUP> expressed as a percentage of NAV as of such date, is</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>7</SUP> If the Fund has been in operation fewer than six months, the
measured period will begin immediately following the Fund&rsquo;s first public offering.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">no more than one percentage point greater than the Fund&rsquo;s
average annual total return for the 5-year period ending on such date;<SUP>8</SUP> and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(ii)&nbsp;the transmittal letter
accompanying any registration statement filed with the Commission in connection with such offering discloses that the Fund has received
an order under Section 19(b) to permit it to make periodic distributions of long-term capital gains with respect to its common shares
as frequently as twelve times each year, and as frequently as distributions are specified by or determined in accordance with the terms
of any outstanding shares of preferred shares as the Fund may issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">7.&nbsp;Amendments to Rule 19b-1</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The requested Order will expire on the effective date of any amendment
to Rule 19b-1 that provides relief permitting certain closed-end investment companies to make periodic distributions of long-term capital
gains with respect to their outstanding common shares as frequently as twelve times each year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">VII.&nbsp;APPLICABLE PRECEDENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Commission has recently granted substantially the same relief
as that sought herein in Destra Multi-Alternative Fund and Destra Capital Advisors LLC, Investment Company Act Release Nos. 35381 (November
12, 2024) (notice) and 35412 (December 10, 2024) (order); Saba Capital Income &amp; Opportunities Fund II and Saba Capital Management,
L.P., Investment Company Act Release Nos. 35277 (July 5, 2024) (notice) and 35288 (July 31, 2024) (order); High Income Securities Fund,
et al., Investment Company Act Release Nos. 34373 (September 9, 2021) (notice) and 34395 (October 5, 2021) (order); First Eagle Global
Opportunities Fund and First Eagle Investment Management, LLC, Investment Company Act Release Nos. 34397 (October 12, 2021) (notice) and
34416 (November 9, 2021) (order); Mainstay CBRE Global Infrastructure Megatrends Fund, et al., Investment Company Act Release Nos. 34372
(September 3, 2021) (notice) and 34390 (September 29, 2021) (order); DoubleLine Opportunistic Credit, et al., Investment Company Act Release
Nos. 34328 (July 13, 2021) (notice) and 34353 (August 9, 2021) (order); Vertical Capital Income Fund and Oakline Advisors, LLC, Investment
Company Act Release Nos. 33505 (June 12, 2019) (notice) and 33548 (July 9, 2019) (order); Putnam Managed Municipal Income Trust, et al.,
Investment Company Act Release Nos. 33449 (April 17, 2019) (notice) and 33474 (May 14, 2019) (order); Macquarie Global Infrastructure
Total Return Fund Inc., et al., Investment Company Act Release Nos. 33389 (March 5, 2019) (notice) and 33436 (April 2, 2019) (order);
Special Opportunities Fund, Inc. and Bulldog Investors, LLC, Investment Company Act Release Nos. 33367 (February 4, 2019) and 33386 (March
4, 2019); Vivaldi Opportunities Fund and Vivaldi Asset Management, LLC, Investment Company Act Release Nos. 33147 (July 3, 2018) (notice)
and 33185 (July 31, 2018) (order); The Swiss Helvetia Fund, Inc., et al., Investment Company Act Release Nos. 33075 (April 23, 2018) (notice)
and 33099 (May 21, 2018) (order); The Mexico Equity &amp; Income Fund, Inc. and Pichardo Asset Management, S.A. de C.V., Investment Company
Act Release Nos. 32640 (May 18, 2017) (notice) and 32676 (June 13, 2017)(order); RiverNorth DoubleLine Strategic Opportunity Fund, Inc.
and RiverNorth Capital Management LLC, Investment Company Act Release Nos. 32635 (May 12, 2017) (notice) and 32673 (June 7, 2017) (order);
Brookfield Global Listed Infrastructure Income Fund Inc., et al., Investment Company Act Release Nos. 31802 (September 1, 2015) (notice)
and 31855 (September 30, 2015) (order); and Ares Dynamic Credit Allocation Fund, Inc., et al., Investment Company Act Release Nos. 31665
(June 9, 2015) (notice) and 31708 (July 7, 2015)(order).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">VIII.&nbsp;PROCEDURAL MATTERS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">All of the requirements for execution and filing of this Application on
behalf of the Applicants have been complied with in accordance with the applicable organizational documents of the Applicants, and the
undersigned officers of the Applicants are fully authorized to execute this Application. The unanimous written consent of the Board, authorizing
the filing of this Application, as required by Rule 0-2(c) under the 1940 Act, are included as Exhibit A to this Application. The verifications
required by Rule 0-2(d) under the 1940 Act are included as Exhibit B to this Application.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>8</SUP> If the Fund has been in operation fewer than five years, the
measured period will begin immediately following the Fund&rsquo;s first public offering.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Pursuant to Rule 0-2(f) under the 1940 Act, Applicants state that their
address is Worldwide Plaza, 309 West 49th Street, New York, NY 10019 and that all written communications regarding this Application should
be directed to the individuals and addresses indicated on the cover page of this Application.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Applicants desire that the Commission issue the requested Order pursuant
to Rule 0-5 under the 1940 Act without conducting a hearing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">IX.&nbsp;CONCLUSION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">For the foregoing reasons, Applicants respectfully request that the Commission
issue an order under Section 6(c) of the 1940 Act exempting the Funds from the provisions of Section 19(b) of the 1940 Act and Rule 19b-1
thereunder to permit each Fund to make distributions on its common shares consisting in whole or in part of capital gain dividends as
frequently as twelve times in any one taxable year so long as it complies with the conditions of the Order and maintains in effect a Distribution
Policy with respect to its common shares as described in this Application. In addition, Applicants request that the Order permit each
Fund to make distributions on its preferred shares (if any) that it has issued or may issue in the future consisting in whole or in part
of capital gain dividends as frequently as specified by or determined in accordance with the terms thereof. Applicants submit that the
requested exemption is necessary or appropriate in the public interest, consistent with the protection of investors and consistent with
the purposes fairly intended by the policy and provisions of the 1940 Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 216pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 216pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Japan Smaller Capitalization Fund, Inc.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 54%">Dated: December 4, 2025</TD>
    <TD STYLE="width: 4%">By:</TD>
    <TD STYLE="width: 42%; border-bottom: Black 1pt solid">/s/ Neil A. Daniele</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD>Name: Neil A. Daniele</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD>Title: Secretary and Chief Compliance Officer</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Nomura Asset Management U.S.A. Inc.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Dated: December 4, 2025</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Neil A. Daniele</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD>Name: Neil A. Daniele</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD>Title: Senior Managing Director and Chief Compliance Officer</TD></TR>
  </TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center">EXHIBITS TO APPLICATION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The following materials are made a part of the Application and are
attached hereto:</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt 36pt; text-indent: -36pt">DESIGNATION DOCUMENT</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 8%">Exhibit A</TD>
    <TD STYLE="width: 92%">Unanimous Written Consent of the Board of Directors of Japan Smaller Capitalization Fund, Inc.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Exhibit B</TD>
    <TD>Verifications</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0pt">Exhibit C</TD>
    <TD STYLE="text-indent: 0pt">Marked copy of the Applicants&rsquo; application showing changes from the application of Destra Multi-Alternative Fund and Destra Capital Advisors LLC (File No. 812-15645), an application identified by the Applicants as substantially identical under Rule 0-5(e)(3).</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-indent: 0pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="text-indent: 0pt">Marked copy of the Applicants&rsquo; application showing changes from the application of Saba Capital Income &amp; Opportunities Fund II and Saba Capital Management, L.P. (File No. 812-15561), an application identified by the Applicants as substantially identical under Rule 0-5(e)(3).</TD></TR>
  </TABLE>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center">EXHIBIT A</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: center">Unanimous Written Consent of the Board
of Directors of<BR>
Japan Smaller Capitalization Fund, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">WHEREAS, the members of the Board of Directors (the &ldquo;Directors&rdquo;)
of Japan Smaller Capitalization Fund, Inc. (the &ldquo;Fund&rdquo;) have reviewed and considered materials presented by the Fund&rsquo;s
officers and counsel regarding an application (together with all exhibits thereto, the &ldquo;Application&rdquo;) to the U.S. Securities
and Exchange Commission (the &ldquo;SEC&rdquo;) seeking an order pursuant to Section 6(c) of the Investment Company Act of 1940, as amended
(the &ldquo;1940 Act&rdquo;), granting exemptions from Section 19(b) of the 1940 Act and Rule 19b-1 thereunder to permit the Fund to make
periodic distributions, including distributions that may consist in whole or in part of capital gain dividends, as frequently as twelve
times in any taxable year with respect to the Fund&rsquo;s shares;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">WHEREAS, the Directors have reviewed the form of the Application
attached to this written consent and considered the anticipated benefits to the Fund and its shareholders of obtaining such exemptive
relief, including the flexibility to continue the Fund&rsquo;s level distribution policy if and when distributions include long-term capital
gains, as well as the conditions and related shareholder disclosure and compliance undertakings described therein; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">WHEREAS, after due consideration, the Directors have determined
that submission of the Application is advisable, in the best interests of the Fund and its shareholders, and consistent with the protection
of investors and the purposes fairly intended by the policy and provisions of the 1940 Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">BE IT THEREFORE RESOLVED, that the form of the Application attached
hereto is hereby approved in all respects, and the officers of the Fund be, and each of them hereby is, authorized, for and on behalf
of the Fund, to execute and submit the Application to the SEC, together with such changes, modifications, supplements or amendments thereto
(including to any exhibits, schedules or other attachments) as such officer may approve, such approval to be conclusively evidenced by
the filing or furnishing thereof;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">FURTHER RESOLVED, that the Board, including a majority of the Independent
Directors, confirms and ratifies its prior determination that the Fund&rsquo;s level distribution policy is consistent with the Fund&rsquo;s
investment objective(s) and in the best interests of the Fund and its shareholders, after consideration of the factors described to the
Board;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">FURTHER RESOLVED, that the Board hereby ratifies (and, to the extent
not previously adopted, adopts) the policies and procedures described in the Application, reasonably designed to ensure compliance with
Section 19(b) of the 1940 Act and Rule 19b-1 thereunder and the recordkeeping described therein, and authorizes the Chief Compliance Officer
to update such policies as necessary;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">FURTHER RESOLVED, that the officers of the Fund be, and each of
them hereby is, authorized, for and on behalf of the Fund, to designate and engage counsel and other advisors, provide all certifications,
verifications and supporting documentation (including but not limited to powers of attorney), make any and all required or appropriate
notices, press releases and shareholder disclosures, and take any and all actions as they may deem necessary, appropriate or advisable
to obtain the requested order, including requesting expedited review under Rule 0-5 and making any responses or submissions to the SEC
or its staff;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">FURTHER RESOLVED, that all actions heretofore taken by any officer
or director of the Fund in connection with the matters contemplated by the foregoing resolutions be, and they hereby are, ratified, confirmed
and approved in all respects: and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">FURTHER RESOLVED, that this written consent may be executed in counterparts
and by electronic transmission, each of which shall be deemed an original, and all of which together shall constitute one and the same
instrument.</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">EXHIBIT B</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Verifications of Japan Smaller Capitalization
Fund, Inc. and Nomura Asset Management U.S.A. Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The undersigned states that he has duly executed the attached application
dated December 4, 2025 for and on behalf of Japan Smaller Capitalization Fund, Inc. in his capacity as Secretary and Chief Compliance
Officer of such entity and that all actions by the holders and other bodies necessary to authorize the undersigned to execute and file
such instrument have been taken. The undersigned further states that he is familiar with such instrument, and the contents thereof, and
that the facts therein set forth are true to the best of his knowledge, information, and belief.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%">By:</TD>
    <TD STYLE="width: 39%; border-bottom: Black 1pt solid">/s/ Neil A. Daniele</TD>
    <TD STYLE="width: 54%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Name:</TD>
    <TD>Neil A. Daniele</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Title:</TD>
    <TD>Secretary and Chief Compliance Officer</TD>
    <TD>&nbsp;</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The undersigned states that he has duly executed the attached application
dated December 4, 2025 for and on behalf of Nomura Asset Management U.S.A. Inc. in his capacity as Chief Compliance Officer of such entity
and that all actions by the holders and other bodies necessary to authorize the undersigned to execute and file such instrument have been
taken. The undersigned further states that he is familiar with such instrument, and the contents thereof, and that the facts therein set
forth are true to the best of his knowledge, information and belief.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%">By:</TD>
    <TD STYLE="width: 39%; border-bottom: Black 1pt solid">/s/ Neil A. Daniele</TD>
    <TD STYLE="width: 54%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Name:</TD>
    <TD>Neil A. Daniele</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Title:</TD>
    <TD>Senior Managing Director and Chief Compliance Officer</TD>
    <TD>&nbsp;</TD></TR>
  </TABLE>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">EXHIBIT C</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Marked copies of the Application showing changes
from the final versions of the two applications identified as substantially identical under Rule 0-5(e)(3).</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">EXPEDITED REVIEW REQUESTED UNDER 17 <FONT STYLE="color: red"><STRIKE>CFR</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">C.F.R.</FONT>
270.0-5(d)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">UNITED STATES OF AMERICA BEFORE THE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">WASHINGTON, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">IN THE MATTER OF:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: red"><STRIKE>DESTRA MULTI-ALTERNATIVE FUND AND DESTRA CAPITAL ADVISORS
LLC</STRIKE></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: blue"><FONT STYLE="text-underline-style: double">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: blue"><FONT STYLE="text-decoration: underline double">JAPAN SMALLER
CAPITALIZATION FUND, INC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 300pt">&#9;APPLICATION PURSUANT TO SECTION 6(c) OF THE &#9;INVESTMENT COMPANY
ACT OF 1940, AS AMENDED &#9;(THE &ldquo;ACT&rdquo;) FOR AN ORDER GRANTING &#9;EXEMPTIONS FROM SECTION 19(b) OF THE ACT AND &#9;RULE 19b-1
THEREUNDER</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Investment Company Act of 1940 File No. 812-</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">PLEASE SEND ALL COMMUNICATIONS AND ORDERS TO:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: red"><STRIKE>Joshua B. Deringer<BR>
Faegre Drinker Biddle &amp; Reath LLP<BR>
One Logan Square, Ste. 2000<BR>
Philadelphia, PA 19103-6996<BR>
(215) 988-2959<BR>
joshua.deringer@faegredrinker.com</STRIKE></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: blue"><FONT STYLE="text-underline-style: double">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: blue"><FONT STYLE="text-decoration: underline double">Jesse
C. Kean</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: blue"><FONT STYLE="text-decoration: underline double">Sidley
Austin LLP</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: blue"><FONT STYLE="text-decoration: underline double">787
7th Avenue</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: blue"><FONT STYLE="text-decoration: underline double">New
York, NY 10019</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: blue"><FONT STYLE="text-decoration: underline double">(212)
839-8615</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: blue"><FONT STYLE="text-decoration: underline double">jkean@sidley.com</FONT></P>




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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 10pt; text-align: center">WITH A COPY TO:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: blue"><FONT STYLE="text-decoration: underline double">Neil
Daniele</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="color: red"><STRIKE>Robert A. Watson<BR>
</STRIKE></FONT>C/O <FONT STYLE="color: red"><STRIKE>Destra Capital Advisors LLC<BR>
443 N Willson Avenue<BR>
Bozeman, MT 59715</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Japan Smaller Capitalization Fund, Inc.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: blue"><FONT STYLE="text-decoration: underline double">Worldwide
Plaza</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: blue"><FONT STYLE="text-decoration: underline double">309
West 49th Street</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: blue"><FONT STYLE="text-decoration: underline double">New
York, NY 10019</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">This Application (including Exhibits) consists of <FONT STYLE="color: red"><STRIKE>53</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">44</FONT>
pages</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">The Exhibit Index is on page <FONT STYLE="color: red"><STRIKE>14</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">13</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">As filed with the U.S. Securities and Exchange Commission
on <FONT STYLE="color: red"><STRIKE>October 18</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">December 4</FONT>,
<FONT STYLE="color: red"><STRIKE>2024</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">2025</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">I.&nbsp;INTRODUCTION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="color: red"><STRIKE>Destra Multi-Alternative Fund</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Japan
Smaller Capitalization Fund, Inc.</FONT> (the &ldquo;Fund&rdquo;) and <FONT STYLE="color: red"><STRIKE>Destra Capital Advisors LLC (&ldquo;<I>Destra</I>&rdquo;
and</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Nomura Asset Management U.S.A. Inc. (&ldquo;NAM-U.S.A.&rdquo;
and,</FONT> together with the Fund <FONT STYLE="color: red"><STRIKE>(</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">,</FONT>
the &ldquo;Applicants&rdquo;) hereby submit this application for an order (the &ldquo;Order&rdquo;) of the Securities and Exchange Commission
(the &ldquo;Commission&rdquo;) pursuant to Section 6(c) of the Investment Company Act of 1940, as amended (the &ldquo;1940 Act&rdquo;),
providing the Fund<FONT STYLE="color: red"><STRIKE>, </STRIKE></FONT> and each other closed-end management investment company registered
under the 1940 Act advised or to be advised in the future by <FONT STYLE="color: red"><STRIKE>Destra</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">NAM-U.S.A.</FONT>,
or by an entity controlling, controlled by or under common control (within the meaning of Section 2(a)(9) of the 1940 Act) with <FONT STYLE="color: red"><STRIKE>Destra</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">NAM-U.S.A.</FONT>
(including any successor in interest<SUP>9</SUP>) (each such entity, including <FONT STYLE="color: red"><STRIKE>Destra</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">NAM-U.S.A.</FONT>,
the &ldquo;Adviser&rdquo;) that in the future seeks to rely on the Order (such investment companies, together with the Fund, are collectively
referred to herein as the &ldquo;Funds&rdquo; and each separately as a &ldquo;Future Fund&rdquo;), an exemption from the provisions of
Section 19(b) of the 1940 Act and Rule 19b-1 thereunder, as more fully set forth below (the &ldquo;Application&rdquo;).<SUP>10</SUP> The
Fund and the Future Funds are hereinafter collectively referred to as the &ldquo;Funds&rdquo; and separately as a &ldquo;Fund<FONT STYLE="color: red"><STRIKE>.</STRIKE></FONT>&rdquo;<FONT STYLE="text-decoration: underline double; color: blue">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">II.&nbsp;THE APPLICANTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Fund is organized as a <FONT STYLE="color: red"><STRIKE>Delaware
statutory trust</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Maryland corporation</FONT>, which is registered
under the 1940 Act as a <FONT STYLE="color: red"><STRIKE>non-diversified</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">diversified</FONT>,
closed-end management investment company and commenced operations on March <FONT STYLE="color: red"><STRIKE>16</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">21</FONT>,
<FONT STYLE="color: red"><STRIKE>2012</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">1990</FONT>. The Fund&rsquo;s
common shares are listed on the New York Stock Exchange <FONT STYLE="color: red"><STRIKE>(&ldquo;<I>NYSE</I>&rdquo;)</STRIKE></FONT>,
a national securities exchange as defined in Section 2(a)(26) of the 1940 Act. Although the Fund does not currently intend to issue preferred
shares, the board of <FONT STYLE="color: red"><STRIKE>trustees</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">directors</FONT>
of the Fund may authorize the issuance of preferred shares in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Fund&rsquo;s investment objective is to <FONT STYLE="color: red"><STRIKE>seek
returns from</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">provide shareholders with long-term</FONT> capital
appreciation and <FONT STYLE="color: red"><STRIKE>income with an emphasis on income generation. The Fund pursues its investment objective
by investing primarily in income-producing securities, including: (1) public and private real estate securities (including securities
issued by real estate funds), (2) alternative investment funds (&ldquo;<I>AIFs</I>&rdquo;), which include business development companies
(&ldquo;<I>BDCs</I>&rdquo;), funds commonly known as &ldquo;hedge funds&rdquo; and other private investment funds, which may also include
funds that primarily hold real estate investments, (3) master limited partnerships, (4) common and preferred stocks, and (5) structured
notes, notes, bonds and asset-backed securities. The Fund also executes investments in the preceding types of securities through index-linked
or actively managed exchange-traded funds (&ldquo;<I>ETFs</I>&rdquo;), mutual funds and closed-end funds (collectively &ldquo;Underlying
Funds&rdquo;). The Fund defines AIFs as BDCs, real estate property funds, limited partnerships and limited liability companies that pursue
investment strategies linked to real estate, small businesses or other investments that serve as alternatives to investments in traditional
stocks and bonds (which could include any type of investment that is consistent with the investment strategy and not a traditional stock
or bond).</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">to invest, under normal circumstances, at least
80% of its total assets in smaller capitalization Japanese equity securities traded on the Tokyo and Nagoya Stock Exchanges, and other
indices or markets determined by NAM-U.S.A. to be appropriate indices or markets for smaller capitalization companies in Japan.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="color: red"><STRIKE>Destra</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">NAM-U.S.A.</FONT>,
with offices at <FONT STYLE="color: red"><STRIKE>443 N Willson Avenue, Bozeman, MT 59715, serves as the investment adviser to the Fund.
Destra</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Worldwide Plaza, 309 West 49th Street, New York, NY
10019,</FONT> is registered with the Commission as an investment adviser under the Investment Advisers Act of 1940, as amended<FONT STYLE="text-decoration: underline double; color: blue">,
and serves as the Fund&rsquo;s manager. NAM-U.S.A. is a wholly-owned subsidiary of Nomura Asset Management Co., Ltd. (&ldquo;NAM Tokyo&rdquo;).
NAM Tokyo serves as the Fund&rsquo;s investment adviser</FONT>. Subject to the oversight of the board of <FONT STYLE="color: red"><STRIKE>trustees</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">directors</FONT>
of the Fund, <FONT STYLE="color: red"><STRIKE>Destra</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">NAM Tokyo</FONT>
is responsible for managing the investment activities of the Fund and the Fund&rsquo;s business affairs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">III.&nbsp;REQUEST FOR EXEMPTIVE RELIEF</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>9</SUP> For the purposes of the requested order, &ldquo;successor&rdquo;
is limited to an entity that results from a reorganization into another jurisdiction or a change in the type of business organization.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>10</SUP> The only registered closed-end investment company that currently
intends to rely on the Order has been named as an Applicant. Any Fund that may rely on the Order in the future will comply with the terms
and conditions of the Application.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Section 19(b) of the 1940 Act provides that it shall be unlawful
in contravention of such rules, regulations, or orders as the Commission may prescribe as necessary or appropriate in the public interest
or for the protection of investors for any registered investment company to distribute long-term capital gains, as defined in the Internal
Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;), more often than once every twelve months. Rule 19b-1 under the 1940 Act provides
that no registered investment company which is a &ldquo;regulated investment company&rdquo; as defined in Section 851 of the Code may
make more than (i) one &ldquo;capital gain dividend,&rdquo; as defined in Section 852(b)(3)(C) of the Code, in any one taxable year of
the company, (ii) one additional capital gain distribution made in whole or in part to avoid payment of excise tax under Section 4982
of the Code<FONT STYLE="text-decoration: underline double; color: blue">,</FONT> plus (iii) one supplemental capital gain dividend pursuant
to Section 855 of the Code (provided that it does not exceed 10% of the total amount distributed for the taxable year).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Applicants believe that Rule 19b-1 should be interpreted to permit
a Fund to pay an unlimited number of distributions on its common and preferred shares (if any) so long as it makes the designation necessary
under the Code and Rule 19b-1 to characterize those distributions as &ldquo;capital gain dividends&rdquo; restricted by Rule 19b-1 only
as often as is permitted by Rule 19b-1, even if the Code would then require retroactively spreading the capital gain resulting from that
designation over more than the permissible number of distributions. However, to obtain certainty for a Fund&rsquo;s <FONT STYLE="color: red"><STRIKE>proposed
</STRIKE></FONT>distribution <FONT STYLE="color: red"><STRIKE>policies</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">policy</FONT>
(<FONT STYLE="color: red"><STRIKE>each</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">the</FONT>, <FONT STYLE="color: red"><STRIKE>a
</STRIKE></FONT>&ldquo;Distribution Policy&rdquo;), in the absence of such an interpretation, Applicants hereby request an order pursuant
to Section 6(c) of the 1940 Act granting an exemption from Section 19(b) of the 1940 Act and Rule 19b-1 thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="color: red"><STRIKE>The Order would permit each</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">The
Fund implemented its Distribution Policy while in a substantial capital loss carryover position and, accordingly, has not paid any &ldquo;capital
gain dividends&rdquo; since implementation because those carryovers have offset the Fund&rsquo;s realized capital gains. The requested
relief would allow the Fund to continue its Distribution Policy once those carryovers are exhausted by permitting distributions of long-term
capital gains in the form of &ldquo;capital gain dividends,&rdquo; as applicable. The Order would permit the Fund to continue making periodic
distributions in accordance with the Distribution Policy when future distributions include net realized long-term capital gains that are
not fully offset by capital loss carryover. Specially, the Order would permit the</FONT> Fund to make periodic capital gain dividends
(as defined in Section 852(b)(3)(C) of the Code) that include long-term capital gains as frequently as twelve times in any one taxable
year in respect of its shares of beneficial interest (&ldquo;common shares&rdquo;) and as often as specified by, or determined in accordance
with the terms of, any preferred shares issued by the Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">IV.&nbsp;REPRESENTATIONS OF
APPLICANTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; color: blue"><FONT STYLE="text-decoration: underline double">The
Fund&rsquo;s Distribution Policy has been publicly disclosed and implemented. The Fund is now making regular periodic distributions to
common shareholders in accordance with its Distribution Policy. To date, these distributions have been funded by the Fund&rsquo;s net
investment income, and realized net long-term capital gains have been entirely offset by the Fund&rsquo;s capital loss carryover, such
that no net realized long-term capital gains have been distributed in the form of &ldquo;capital gain dividends&rdquo;. The exemptive
relief sought by this Application is intended to permit the Fund to continue its Distribution Policy once the Fund&rsquo;s capital loss
carryovers are exhausted, at which point future distributions under the Policy may include net realized long-term capital gains in the
form of &ldquo;capital gain dividends&rdquo;.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Prior to a Fund&rsquo;s implementing a Distribution Policy<FONT STYLE="text-decoration: underline double; color: blue">,</FONT>
in reliance on the Order, the board of directors or trustees (the &ldquo;Board&rdquo;) of each Fund seeking to rely on the Order, including
a majority of the directors or trustees who are not interested persons of the Fund, as defined in Section 2(a)(19) of the 1940 Act (the
&ldquo;Independent Board Members&rdquo;), will request, <FONT STYLE="text-decoration: underline double; color: blue">or requested, as
the case may be, </FONT>and the Adviser will provide, <FONT STYLE="text-decoration: underline double; color: blue">or provided, as applicable,
</FONT>such information as is<FONT STYLE="text-decoration: underline double; color: blue">, or was,</FONT> reasonably necessary to make
an informed determination of whether the Board should adopt a proposed Distribution Policy. In particular, the Board and the Independent
Board Members will review<FONT STYLE="text-decoration: underline double; color: blue">, or reviewed, as the case may be,</FONT> information
regarding (i) the purpose and terms of the proposed Distribution Policy; (ii) the likely effects of the proposed Distribution Policy on
the Fund&rsquo;s long-term total return (in relation to market price and net asset value per share of common shares (&ldquo;NAV&rdquo;));
(iii) the expected relationship between the Fund&rsquo;s distribution rate on its common shares under the proposed Distribution Policy
and the Fund&rsquo;s total return (in relation to NAV); (iv) whether the rate of distribution is anticipated to exceed the Fund&rsquo;s
expected total return in relation to its NAV; and (v) any foreseeable material effects of the proposed Distribution Policy on the Fund&rsquo;s
long-term total return (in relation to market price and NAV).</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Independent Board Members <FONT STYLE="color: red"><STRIKE>will
</STRIKE></FONT>also <FONT STYLE="text-decoration: underline double; color: blue">considered, or will </FONT>consider<FONT STYLE="text-decoration: underline double; color: blue">,
as applicable,</FONT> what conflicts of interest the Adviser and the affiliated persons of the Adviser and the Fund might have with respect
to the adoption or implementation of the proposed Distribution Policy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Following this review, the Board, including the Independent Board
Members, of each Fund will, before adopting or implementing any proposed Distribution Policy, make a determination that the proposed Distribution
Policy is consistent with the Fund&rsquo;s investment objective(s) and in the best interests of the holders of the Fund&rsquo;s common
shares. The Distribution Policy will be consistent with the Fund&rsquo;s policies and procedures and will be described in the Fund&rsquo;s
registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">In addition, <FONT STYLE="color: red"><STRIKE>prior to</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">in
connection with the</FONT> implementation of <FONT STYLE="color: red"><STRIKE>a</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">the</FONT>
Distribution Policy <FONT STYLE="color: red"><STRIKE>for any Fund pursuant to the Order requested by this Application</STRIKE></FONT>,
the Board <FONT STYLE="color: red"><STRIKE>of the Fund shall have</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">also</FONT>
adopted policies and procedures (the &ldquo;Section 19 Compliance Policies&rdquo;) pursuant to Rule 38a-1 under the 1940 Act that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">1.&nbsp;are reasonably designed
to ensure that all notices required to be sent to the Fund&rsquo;s shareholders pursuant to Section 19(a) of the 1940 Act, Rule 19a-1
thereunder<FONT STYLE="text-decoration: underline double; color: blue">,</FONT> and by condition 4 <FONT STYLE="text-decoration: underline double; color: blue">of
Part VI </FONT>below (each, a &ldquo;19(a) Notice&rdquo;) include the disclosure required by Rule 19a-1 and by condition 2(a) <FONT STYLE="text-decoration: underline double; color: blue">of
Part VI </FONT>below, and that all other written communications by the Fund or its agents regarding distributions under the Distribution
Policy include the disclosure required by condition 3(a) <FONT STYLE="text-decoration: underline double; color: blue">of Part VI </FONT>below;
and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">2.&nbsp;require the Fund to
keep records that demonstrate its compliance with all of the conditions of the Order and that are necessary for the Fund to form the basis
for, or demonstrate the calculation of, the amounts disclosed in its 19(a) Notices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The records of the actions of the Board of each Fund will summarize
the basis for the Board&rsquo;s approval of the Distribution Policy, including its consideration of the factors described above. These
records will be maintained for a period of at least six years from the date of the applicable meeting, the first two years in an easily
accessible place, or for such longer period as may otherwise be required by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Generally, the purpose of a Distribution Policy would be to permit
a Fund to distribute periodically, over the course of each year, an amount closely approximating the total taxable income of the Fund
during the year through distributions in relatively equal amounts (plus any required special distributions) that are composed of payments
received from portfolio companies, supplemental amounts generally representing realized capital gains<FONT STYLE="text-decoration: underline double; color: blue">,</FONT>
or<FONT STYLE="color: red"><STRIKE>, </STRIKE></FONT> possibly, returns of capital that may represent unrealized capital gains. The Fund
seeks to establish a distribution rate that approximates the Fund&rsquo;s projected total return that can reasonably be expected to be
generated by the Fund over an extended period of time, although the distribution rate will not be solely dependent on the amount of income
earned or capital gains realized by the Fund for the year. Under the Distribution Policy of a Fund, the Fund would distribute periodically
(as frequently as twelve times in any taxable year) to its respective common shareholders a fixed percentage of the market price of the
Fund&rsquo;s common shares at a particular point in time or a fixed percentage of NAV at a particular time or a fixed amount per share
of common shares, any of which may be adjusted from time to time. It is anticipated that under a Distribution Policy, the minimum annual
distribution rate with respect to the Fund&rsquo;s common shares would be independent of the Fund&rsquo;s performance during any particular
period but would be expected to correlate with the Fund&rsquo;s performance over time. Except for extraordinary distributions and potential
increases or decreases in the final dividend periods in light of the Fund&rsquo;s performance for an entire calendar year and to enable
the Fund to comply with the distribution requirements of Subchapter M of the Code for the calendar year<FONT STYLE="color: red"><STRIKE>,
</STRIKE></FONT> each distribution on the Fund&rsquo;s common shares would be at the stated rate then in effect. The Board will periodically
review the amount of potential distributions in light of the investment experience of the Fund<FONT STYLE="color: red"><STRIKE>, </STRIKE></FONT>
and may modify or terminate a Distribution Policy at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">V.&nbsp;JUSTIFICATION FOR REQUESTED
RELIEF</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Section 6(c) of the 1940 Act provides that the Commission may exempt any
person, security<FONT STYLE="text-decoration: underline double; color: blue">,</FONT> or transaction from any provision of the 1940 Act
or <FONT STYLE="color: red"><STRIKE>of</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">from</FONT> any rule
or regulation thereunder, if and to the extent that the exemption is necessary or appropriate in the public interest and consistent with
the protection of investors and the purposes fairly intended by the policy and provisions of the 1940 Act. For the reasons set forth below,
Applicants submit that the requested exemption from Section 19(b) of the 1940 Act and Rule 19b-1 thereunder would be consistent with the</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">standards set forth in Section 6(c) of the 1940 Act and in the best
interests of the Funds and their respective shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">A.&nbsp;Receipt of the Order
would serve shareholder interests</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="text-decoration: underline double; color: blue">The
Fund implemented its Distribution Policy while in a substantial capital loss carryover position and, accordingly, has not paid any &ldquo;capital
gain dividends&rdquo; since implementation because those carryovers have offset the Fund&rsquo;s realized capital gains. The requested
relief would allow the Fund to continue its Distribution Policy once those carryovers are exhausted by permitting distributions of long-term
capital gains in the form of &ldquo;capital gain dividends,&rdquo; as applicable. </FONT>Applicants believe that closed-end fund investors
may prefer an investment vehicle that provides regular current income through fixed distribution policies that would be available through
a Distribution Policy. Allowing a Distribution Policy to operate in the manner described in this Application would help fill current investor
demand and foster competition in the registered fund market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">An exemption from Rule 19b-1 would benefit shareholders in another
way. Common shares of closed-end funds often trade in the marketplace at a discount to their NAV. Applicants believe that this discount
may be reduced if a Fund is permitted to pay relatively frequent dividends on its common shares at a consistent rate, whether or not those
dividends contain an element of long-term capital gains. Any reduction in the discount at which the Fund&rsquo;s common shares trade in
the market would benefit the holders of the Fund&rsquo;s common shares along with the Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">B.&nbsp;The Fund&rsquo;s shareholders
would receive information sufficient to clearly inform them of the nature of the distributions they are receiving</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">One of the concerns leading to the enactment of Section 19(b) and
adoption of Rule 19b-1 was that shareholders might be unable to distinguish between frequent distributions of capital gains and dividends
from investment income.<SUP>11</SUP> However, Rule 19a-1 under the 1940 Act effectively addresses this concern by requiring that distributions
(or the confirmation of the reinvestment thereof) estimated to be sourced in part from capital gains or capital be accompanied by a separate
statement showing the sources of the distribution (e.g., estimated net income, net short-term capital gains, net long-term capital gains<FONT STYLE="text-decoration: underline double; color: blue">,</FONT>
and/or return of capital). The same information will be included in each Fund&rsquo;s annual report to shareholders and on its Internal
Revenue Service (&ldquo;IRS&rdquo;) Form 1099-DIV, which will be sent to each common and preferred shareholder who received distributions
during a particular year (including shareholders who have sold shares during the year).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">In addition, each of the Funds will make the additional disclosures
required by the conditions set forth in Part VI below, and each of them will adopt compliance policies and procedures in accordance with
Rule 38a-1 under the 1940 Act to ensure that all required notices and disclosures are sent to shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The information required by Section 19(a), Rule 19a-1, the Distribution
Policy, the Section 19 Compliance Policies<FONT STYLE="text-decoration: underline double; color: blue">,</FONT> and the conditions listed
below <FONT STYLE="text-decoration: underline double; color: blue">in Part VI </FONT>will help to ensure that each Fund&rsquo;s shareholders
are provided sufficient information to understand that their periodic distributions are not tied to the Fund&rsquo;s net investment income
(which for this purpose is the Fund&rsquo;s taxable income other than from capital gains) and realized capital gains to date, and may
not represent yield or investment return. Accordingly, subjecting the Funds to Section 19(b) and Rule 19b-1 would afford shareholders
no extra protection. In addition, the Funds will undertake to request intermediaries, or their agent(s), to forward 19(a) Notices to their
customers and to reimburse them for the costs of forwarding. Such forwarding may occur in any manner permitted by statute, rule<FONT STYLE="text-decoration: underline double; color: blue">,</FONT>
or order or by the staff of the Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">C.&nbsp;Under certain circumstances,
Rule 19b-1 gives rise to improper influence on portfolio management decisions, with no offsetting benefit to shareholders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Rule 19b-1, when applied to a Distribution Policy, actually gives rise
to one of the concerns that Rule 19b-1 was intended to avoid: inappropriate influence on portfolio management decisions. <FONT STYLE="color: red"><STRIKE>Funds</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">A
registered fund</FONT> that <FONT STYLE="color: red"><STRIKE>pay</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">pays</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: blue"><FONT STYLE="text-underline-style: double">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: blue"><FONT STYLE="text-underline-style: double"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="text-decoration: underline double"><SUP>11</SUP></FONT> <I>See</I>
Securities and Exchange Commission 1966 Report to Congress on Investment Company Growth (H.R. Rep. No. 2337, 89th Cong. 2d Sess. 190-95
(1966)); S. Rep. No. 91-184, 91st Cong., 1st Sess. 29 (1969); H.R. Rep. No. 91-1382, 91st Cong., 2d Sess. 29 (1970).</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">long-term capital gains distributions only once per year in accordance
with Rule 19b-1 impose no pressure on management to realize capital gains at any time when purely investment considerations do not dictate
doing so. In the absence of an exemption from Rule 19b-1, the adoption of a periodic distribution plan imposes pressure on management
(i) not to realize any net long-term capital gains until the point in the year that the fund can pay all of its remaining distributions
in accordance with Rule 19b-1 and (ii) not to realize any long-term capital gains during any particular year in excess of the amount of
the aggregate pay-out for the year (since as a practical matter excess gains must be distributed and accordingly would not be available
to satisfy pay-out requirements in following years), notwithstanding that purely investment considerations might favor realization of
long-term gains at different times.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">No purpose is served by the distortion in the normal operation of
a periodic distribution plan required in order to comply with Rule 19b-1. There is no benefit in requiring any <FONT STYLE="text-decoration: underline double; color: blue">registered
</FONT>fund that adopts a periodic distribution plan either to retain (and pay taxes on) long-term capital gains (with the resulting additional
tax return complexities for the fund&rsquo;s shareholders) or to avoid designating its distributions of long-term gains as capital gains
dividends for tax purposes (thereby avoiding a Rule 19b-1 problem but providing distributions taxable at ordinary income rates rather
than the much lower long-term capital gains rates). The desirability of avoiding these anomalous results creates pressure to limit the
realization of long-term capital gains that otherwise would be taken for purely investment considerations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Order requested by Applicants would minimize these anomalous
effects of Rule 19b-1 by enabling the Funds to realize long-term capital gains as often as investment considerations dictate without fear
of violating Rule 19b-1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">D.&nbsp;Other concerns leading
to adoption of Rule 19b-1 are not applicable</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Another concern that led to the enactment of Section 19(b) of the
1940 Act and adoption of Rule 19b-1 was that frequent capital gains distributions could facilitate improper fund share sales practices,
including, in particular, the practice of urging an investor to purchase shares of a fund on the basis of an upcoming capital gains dividend
(&ldquo;selling the dividend&rdquo;), where the dividend would result in an immediate corresponding reduction in NAV and would be in effect
a taxable return of the investor&rsquo;s capital. Applicants submit that this concern should not apply to closed-end investment companies,
such as the Funds, that do not continuously distribute shares. Furthermore, if the underlying concern extends to secondary market purchases
of shares of closed-end funds that are subject to a large upcoming capital gains dividend, adoption of a periodic distribution plan may
help minimize the concern by avoiding, through periodic distributions, any buildup of large end-of-the-year distributions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Applicants also submit that the &ldquo;selling the dividend&rdquo;
concern is not applicable to preferred shares, which entitles a holder to no more than a specified periodic dividend and, like a debt
security, is initially sold at a price based upon its liquidation preference, credit quality, dividend rate and frequency of payment.
Investors buy preferred shares for the purpose of receiving specific payments at the frequency bargained for, and any application of Rule
19b-1 to preferred shares would be contrary to the expectation of investors. There is also currently a tax rule that provides that any
loss realized by a shareholder upon sale of shares of a regulated investment company that were held for six months or less will be treated
as a long-term capital loss, to the extent of any long-term capital gains paid on such shares, to avoid the selling of dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">E.&nbsp;Further limitations
of Rule 19b-1</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Subparagraphs (a) and (f) of Rule 19b-1 limit the number of <FONT STYLE="text-decoration: underline double; color: blue">&ldquo;</FONT>capital
gains dividends,<FONT STYLE="text-decoration: underline double; color: blue">&rdquo;</FONT> as defined in Section 852(b)(3)(C) of the
Code, that a <FONT STYLE="text-decoration: underline double; color: blue">registered </FONT>fund may make with respect to any one taxable
year to one, plus a supplemental distribution made pursuant to Section 855 of the Code not exceeding 10% of the total amount distributed
for the year, plus one additional capital gain dividend made in whole or in part to avoid the excise tax under Section 4982 of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Applicants assert that by limiting the number of capital gain dividends
that a Fund may make with respect to any one year, Rule 19b-1 may prevent the normal and efficient operation of a periodic distribution
plan whenever that Fund&rsquo;s realized net long-term capital gains in any year exceed the total of the periodic distributions that may
include such capital gains under the rule. Rule 19b-1 thus may force the fixed regular periodic distributions to be funded</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">with returns of capital<SUP>12</SUP> (to the extent net investment
income and realized short term capital gains are insufficient to fund the distribution), even though realized net long-term capital gains
otherwise would be available.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">To distribute all of a Fund&rsquo;s long-term capital gains within
the limits in Rule 19b-1, a Fund may be required to make total distributions in excess of the annual amount called for by its periodic
distribution plan or to retain and pay taxes on the excess amount. Applicants believe that the application of Rule 19b-1 to a Fund&rsquo;s
periodic distribution plan may create pressure to limit the realization of long-term capital gains based on considerations unrelated to
investment goals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Revenue Ruling 89-81<SUP>13</SUP> under the Code requires that a
fund that seeks to qualify as a regulated investment company under the Code and that has both common shares and preferred shares outstanding
designate the types of income, <FONT STYLE="text-decoration: underline double; color: blue">(</FONT>e.g., investment income and capital
gains<FONT STYLE="text-decoration: underline double; color: blue">)</FONT>, in the same proportion as the total distributions distributed
to each class for the tax year. To satisfy the proportionate designation requirements of Revenue Ruling 89-81, whenever a fund has realized
a long-term capital gain with respect to a given tax year, the fund must designate the required proportionate share of such capital gain
to be included in common and preferred shares dividends. Although Rule 19b-1 allows a fund some flexibility with respect to the frequency
of capital gains distributions, a fund might use all of the exceptions available under Rule 19b-1 for a tax year and still need to distribute
additional capital gains allocated to the preferred shares to comply with Revenue Ruling 89-81.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The potential abuses addressed by Section 19(b) and Rule 19b-1 do
not arise with respect to preferred shares issued by a closed-end fund. Such distributions generally are either fixed or are determined
in periodic auctions or remarketings or are periodically reset by reference to short-term interest rates rather than by reference to performance
of the issuer, and Revenue Ruling 89-81 determines the proportion of such distributions that are <FONT STYLE="color: red"><STRIKE>comprised</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">composed</FONT>
of the long-term capital gains. The Applicants also submit that the &ldquo;selling the dividend&rdquo; concern is not applicable to preferred
shares, which entitles a holder to no more than a periodic dividend at a fixed rate or the rate determined by the market, and, like a
debt security, is priced based upon its liquidation value, dividend rate, credit quality, and frequency of payment. Investors buy preferred
shares for the purpose of receiving payments at the frequency bargained for and do not expect the liquidation value of their shares to
change.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The proposed Order will assist the Funds in avoiding these Rule
19b-1 problems.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">F.&nbsp;General</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The relief requested is that the Commission permit the Funds to
make periodic distributions in respect of their common shares as frequently as twelve times in any one taxable year and in respect of
their preferred shares as specified by or determined in accordance with the terms thereof. Granting this relief would provide the Funds
with flexibility in meeting investor interest in receiving more frequent distributions. Implementation of the relief would actually ameliorate
the concerns that gave rise to Section 19(b) and Rule 19b-1 and help avoid the &ldquo;selling of dividends&rdquo; problem, which Section
19(b) and Rule 19b-1 are not effective in preventing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The potential issues under Rule 19b-1 are not relevant to distributions
on preferred shares. Not only are such distributions fixed or determined by the market rather than by reference to the performance of
the issuer but also the long-term capital gain component is mandated by the IRS to be the same proportion as the proportion of long-term
gain dividends bears to the total distributions in respect of the common shares and consequently the long-term gain component cannot even
be known until the end of the fund&rsquo;s fiscal year. In these circumstances it would be very difficult for any of the potential abuses
reflected in Rule 19b-1&rsquo;s restrictions to occur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In summary, Rule 19b-1, in the circumstances referred to above, is likely
to distort the effective and proper functioning of a Fund&rsquo;s Distribution Policy and gives rise to the very pressures on portfolio
management decisions that Rule 19b-1 was intended to avoid. These distortions forced by Rule 19b-1 serve no purpose and are not in the
best interests of shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>12</SUP> These would be returns of capital for financial accounting
purposes and not for tax accounting purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>13</SUP> 1989-1 C.B. 226.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">VI.&nbsp;APPLICANTS&rsquo; CONDITIONS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Applicants agree that, with respect to each Fund seeking to rely
on the Order, the Order will be subject to each of the following conditions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">1.&nbsp;Compliance Review and
Reporting</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Fund&rsquo;s chief compliance officer will: (a) report to the
Fund&rsquo;s Board, no less frequently than once every three months or at the next regularly scheduled quarterly Board meeting, whether
(i) the Fund and <FONT STYLE="color: red"><STRIKE>its Adviser</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">NAM-U.S.A.</FONT>
have complied with the conditions of the Order and (ii) a <FONT STYLE="text-decoration: underline double; color: blue">&ldquo;</FONT>material
compliance matter<FONT STYLE="text-decoration: underline double; color: blue">&rdquo;</FONT> (as defined in Rule 38a-1(e)(2) under the
1940 Act) has occurred with respect to such conditions; and (b) review the adequacy of the policies and procedures adopted by the Board
no less frequently than annually.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">2.&nbsp;Disclosures to Fund
Shareholders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(a)&nbsp;Each 19(a) Notice disseminated
to the holders of the Fund&rsquo;s common shares, in addition to the information required by Section 19(a) and Rule 19a-1:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(i)&nbsp;will provide, in a
tabular or graphical format:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(1)&nbsp;the amount of the distribution,
on a per share of common shares basis, together with the amounts of such distribution amount, on a per share of common shares basis and
as a percentage of such distribution amount, from estimated: (A) net investment income; (B) net realized short-term capital gains; (C)
net realized long-term capital gains; and (D) return of capital or other capital source;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(2)&nbsp;the fiscal year-to-date
cumulative amount of distributions, on a per share of common shares basis, together with the amounts of such cumulative amount, on a per
share of common shares basis and as a percentage of such cumulative amount of distributions, from estimated: (A) net investment income;
(B) net realized short-term capital gains; (C) net realized long-term capital gains; and (D) return of capital or other capital source;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(3)&nbsp;the average annual
total return in relation to the change in NAV for the 5-year period (or, if the Fund&rsquo;s history of operations is less than five years,
the time period commencing immediately following the Fund&rsquo;s first public offering) ending on the last day of the month ended immediately
prior to the most recent distribution record date compared to the current fiscal period&rsquo;s annualized distribution rate expressed
as a percentage of NAV as of the last day of the month prior to the most recent distribution record date; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(4)&nbsp;the cumulative total
return in relation to the change in NAV from the last completed fiscal year to the last day of the month prior to the most recent distribution
record date<FONT STYLE="text-decoration: underline double; color: blue">,</FONT> compared to the fiscal year-to-date cumulative distribution
rate expressed as a percentage of NAV as of the last day of the month prior to the most recent distribution record date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Such disclosure shall be made in a type size at least as large and
as prominent as the estimate of the sources of the current distribution; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(ii)&nbsp;will include the following
disclosure:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(1)&nbsp;&ldquo;You should not
draw any conclusions about the Fund&rsquo;s investment performance from the amount of this distribution or from the terms of the Fund&rsquo;s
Distribution Policy.&rdquo;;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(2)&nbsp;&ldquo;The Fund estimates
that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return
of capital. A return of capital may occur, for example, when some or all</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">of the money that you invested in the Fund is paid back to you.
A return of capital distribution does not necessarily reflect the Fund&rsquo;s investment performance and should not be confused with
&lsquo;yield&rsquo; or &lsquo;income&rsquo;&rdquo;;<SUP>14</SUP> and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(3)&nbsp;&ldquo;The amounts
and sources of distributions reported in this 19(a) Notice are only estimates and are not being provided for tax reporting purposes. The
actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund&rsquo;s investment experience during the
remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar
year that will tell you how to report these distributions for federal income tax purposes.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Such disclosure shall be made in a type size at least as large as
and as prominent as any other information in the 19(a) Notice and placed on the same page in close proximity to the amount and the sources
of the distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(b)&nbsp;On the inside front
cover of each report to shareholders under Rule 30e-1 under the 1940 Act, the Fund will:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(i)&nbsp;describe the terms
of the Distribution Policy (including the fixed amount or fixed percentage of the distributions and the frequency of the distributions);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(ii)&nbsp;include the disclosure
required by condition 2(a)(ii)(1) above;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(iii)&nbsp;state, if applicable,
that the Distribution Policy provides that the Board may amend or terminate the Distribution Policy at any time without prior notice to
Fund shareholders; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(iv)&nbsp;describe any reasonably
foreseeable circumstances that might cause the Fund to terminate the Distribution Policy and any reasonably foreseeable consequences of
such termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(c)&nbsp;Each report provided
to shareholders of a Fund under Rule 30e-1 under the 1940 Act<FONT STYLE="text-decoration: underline double; color: blue">,</FONT> and
each prospectus filed with the Commission on Form N-2 under the 1940 Act, will provide the Fund&rsquo;s total return in relation to changes
in NAV in the financial highlights table and in any discussion about the Fund&rsquo;s total return.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">3.&nbsp;Disclosure to Shareholders,
Prospective Shareholders and Third Parties</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(a)&nbsp;The Fund will include
the information contained in the relevant 19(a) Notice, including the disclosure required by condition 2(a)(ii) above, in any written
communication (other than a communication on Form 1099) about the Distribution Policy or distributions under the Distribution Policy by
the Fund, or agents that the Fund has authorized to make such communication on the Fund&rsquo;s behalf, to any Fund shareholder, prospective
shareholder<FONT STYLE="text-decoration: underline double; color: blue">,</FONT> or third-party information provider;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(b)&nbsp;The Fund will issue,
contemporaneously with the issuance of any 19(a) Notice, a press release containing the information in the 19(a) Notice and will file
with the Commission the information contained in such 19(a) Notice, including the disclosure required by condition 2(a)(ii) above, as
an exhibit to its next filed Form N-CSR; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(c)&nbsp;The Fund will post
prominently a statement on its (or <FONT STYLE="color: red"><STRIKE>the Adviser&rsquo;s</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">NAM-U.S.A.&rsquo;s</FONT>)
website containing the information in each 19(a) Notice, including the disclosure required by condition 2(a)(ii) above, and maintain such
information on such website for at least 24 months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">4.&nbsp;Delivery of 19(a) Notices
to Beneficial Owners</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">If a broker, dealer, bank<FONT STYLE="text-decoration: underline double; color: blue">,</FONT>
or other person (&ldquo;financial intermediary&rdquo;) holds common shares issued by the Fund in nominee name, or otherwise, on behalf
of a beneficial owner, the Fund:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>14</SUP> The disclosure in this condition 2(a)(ii)(2) will be included
only if the current distribution or the fiscal year-to-date cumulative distributions are estimated to include a return of capital.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(a)&nbsp;will request that the
financial intermediary, or its agent, forward the 19(a) Notice to all beneficial owners of the Fund&rsquo;s shares held through such financial
intermediary;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(b)&nbsp;will provide, in a
timely manner, to the financial intermediary, or its agent, enough copies of the 19(a) Notice assembled in the form and at the place that
the financial intermediary, or its agent, reasonably requests to facilitate the financial intermediary&rsquo;s sending of the 19(a) Notice
to each beneficial owner of the Fund&rsquo;s shares; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(c)&nbsp;upon the request of
any financial intermediary, or its agent, that receives copies of the 19(a) Notice, will pay the financial intermediary, or its agent,
the reasonable expenses of sending the 19(a) Notice to such beneficial owners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">5.&nbsp;Additional Board Determinations
for Funds Whose Common Shares Trade at a Premium</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">If:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(a)&nbsp;The Fund&rsquo;s common
shares have traded on the stock exchange that they primarily trade on at the time in question at an average premium to NAV equal to or
greater than 10%, as determined on the basis of the average of the discount or premium to NAV of the Fund&rsquo;s common shares as of
the close of each trading day over a 12-week rolling period (each such 12-week rolling period ending on the last trading day of each week);
and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(b)&nbsp;The Fund&rsquo;s annualized
distribution rate for such 12-week rolling period, expressed as a percentage of NAV as of the ending date of such 12-week rolling period,
is greater than the Fund&rsquo;s average annual total return in relation to the change in NAV over the 2-year period ending on the last
day of such 12-week rolling period;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">then:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(i)&nbsp;At the earlier of the
next regularly scheduled meeting or within four months of the last day of such 12-week rolling period, the Board, including a majority
of its Independent Board Members:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(1)&nbsp;will request and evaluate,
and <FONT STYLE="color: red"><STRIKE>the Fund&rsquo;s Adviser</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">NAM-U.S.A.</FONT>
will furnish, such information as may be reasonably necessary to make an informed determination of whether the Distribution Policy should
be continued or continued after amendment;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(2)&nbsp;will determine whether
continuation, or continuation after amendment, of the Distribution Policy is consistent with the Fund&rsquo;s investment objective(s)
and policies and is in the best interests of the Fund and its shareholders, after considering the information in condition 5(b)(i)(1)
above; including, without limitation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(A)&nbsp;whether the Distribution
Policy is accomplishing its purpose(s);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(B)&nbsp;the reasonably foreseeable
material effects of the Distribution Policy on the Fund&rsquo;s long-term total return in relation to the market price and NAV of the
Fund&rsquo;s common shares; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(C)&nbsp;the Fund&rsquo;s current
distribution rate, as described in condition 5(b) above, compared with the Fund&rsquo;s average annual taxable income or total return
over the 2-year period, as described in condition 5(b), or such longer period as the Board deems appropriate; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(3)&nbsp;based upon that determination,
will approve or disapprove the continuation, or continuation after amendment, of the Distribution Policy; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(ii)&nbsp;The Board will record
the information considered by it, including its consideration of the factors listed in condition 5(b)(i)(2) above, and the basis for its
approval or disapproval of the continuation, or continuation after amendment, of the Distribution Policy in its meeting minutes, which
must be made and preserved for a period of not less than six years from the date of such meeting, the first two years in an easily accessible
place.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">6.&nbsp;Public Offerings</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Fund will not make a public offering of the Fund&rsquo;s common
shares other than:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(a)&nbsp;a rights offering below
NAV to holders of the Fund&rsquo;s common shares;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(b)&nbsp;an offering in connection
with a dividend reinvestment plan, merger, consolidation, acquisition, spin off or reorganization of the Fund; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(c)&nbsp;an offering other than
an offering described in conditions 6(a) and 6(b) above, provided that, with respect to such other offering:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(i)&nbsp;the Fund&rsquo;s annualized
distribution rate for the six months ending on the last day of the month ended immediately prior to the most recent distribution record
date<FONT STYLE="text-decoration: underline double; color: blue">,</FONT><SUP>15</SUP><FONT STYLE="color: red"><STRIKE>, </STRIKE></FONT>
expressed as a percentage of NAV as of such date, is no more than one percentage point greater than the Fund&rsquo;s average annual total
return for the 5-year period ending on such date;<SUP>16</SUP> and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(ii)&nbsp;the transmittal letter
accompanying any registration statement filed with the Commission in connection with such offering discloses that the Fund has received
an order under Section 19(b) to permit it to make periodic distributions of <FONT STYLE="color: red"><STRIKE>long- term</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">long-term</FONT>
capital gains with respect to its common shares as frequently as twelve times each year, and as frequently as distributions are specified
by or determined in accordance with the terms of any outstanding shares of preferred shares as the Fund may issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">7.&nbsp;Amendments to Rule 19b-1</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The requested Order will expire on the effective date of any amendment
to Rule 19b-1 that provides relief permitting certain closed-end investment companies to make periodic distributions of long-term capital
gains with respect to their outstanding common shares as frequently as twelve times each year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">VII.&nbsp;APPLICABLE PRECEDENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Commission has recently granted substantially the same relief as that
sought herein in <FONT STYLE="text-decoration: underline double; color: blue">Destra Multi-Alternative Fund and Destra Capital Advisors
LLC, Investment Company Act Release Nos. 35381 (November 12, 2024) (notice) and 35412 (December 10, 2024) (order); </FONT>Saba Capital
Income &amp; Opportunities Fund II and Saba Capital Management, L.P., Investment Company Act Release Nos. 35277 (July 5, 2024) (notice)
and 35288 (July 31, 2024) (order); High Income Securities Fund, et al., Investment Company Act Release Nos. 34373 (September 9, 2021)
(notice) and 34395 (October 5, 2021) (order); First Eagle Global Opportunities Fund and First Eagle Investment Management, LLC, Investment
Company Act Release Nos. 34397 (October 12, 2021) (notice) and 34416 (November 9, 2021) (order); Mainstay CBRE Global Infrastructure Megatrends
Fund, et al., Investment Company Act Release Nos. 34372 (September 3, 2021) (notice) and 34390 (September 29, 2021) (order); DoubleLine
Opportunistic Credit, et al., Investment Company Act Release Nos. 34328 (July 13, 2021) (notice) and 34353 (August 9, 2021) (order); Vertical
Capital Income Fund and Oakline Advisors, LLC, Investment Company Act Release Nos. 33505 (June 12, 2019) (notice) and 33548 (July 9, 2019)
(order); Putnam Managed Municipal Income Trust, et al., Investment Company Act Release Nos. 33449 (April 17, 2019) (notice) and 33474
(May 14, 2019) (order); Macquarie Global Infrastructure Total Return Fund Inc., et al., Investment Company Act Release Nos. 33389 (March
5, 2019) (notice) and 33436 (April 2, 2019) (order); Special Opportunities Fund, Inc. and Bulldog Investors, LLC, Investment Company Act
Release Nos. 33367 (February 4, 2019) and 33386 (March 4, 2019); Vivaldi Opportunities Fund and Vivaldi Asset Management, LLC, Investment
Company Act Release Nos. 33147 (July 3, 2018) (notice) and 33185 (July 31, 2018) (order); The Swiss Helvetia Fund, Inc., et al., Investment
Company Act Release Nos. 33075 (April 23, 2018) (notice) and 33099 (May 21, 2018) (order); The Mexico Equity &amp; Income Fund, Inc. and
Pichardo Asset Management, S.A. de C.V., Investment Company Act Release Nos. 32640 (May 18, 2017) (notice) and 32676 (June 13, 2017)(order);
RiverNorth DoubleLine Strategic Opportunity Fund, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>15</SUP> If the Fund has been in operation fewer than six months,
the measured period will begin immediately following the Fund&rsquo;s first public offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>16</SUP> If the Fund has been in operation fewer than five years,
the measured period will begin immediately following the Fund&rsquo;s first public offering.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">and RiverNorth Capital Management LLC, Investment Company Act Release
Nos. 32635 (May 12, 2017) (notice) and 32673 (June 7, 2017) (order); Brookfield Global Listed Infrastructure Income Fund Inc., et al.,
Investment Company Act Release Nos. 31802 (September 1, 2015) (notice) and 31855 (September 30, 2015) (order); and Ares Dynamic Credit
Allocation Fund, Inc., et al., Investment Company Act Release Nos. 31665 (June 9, 2015) (notice) and 31708 (July 7, 2015)(order).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">VIII.&nbsp;PROCEDURAL MATTERS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">All of the requirements for execution and filing of this Application
on behalf of the Applicants have been complied with in accordance with the applicable organizational documents of the Applicants, and
the undersigned officers of the Applicants are fully authorized to execute this Application. The <FONT STYLE="color: red"><STRIKE>resolutions</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">unanimous
written consent</FONT> of the Board <FONT STYLE="color: red"><STRIKE>of Trustees of the Fund</STRIKE></FONT>, authorizing the filing of
this Application, <FONT STYLE="text-decoration: underline double; color: blue">as </FONT>required by Rule 0-2(c) under the 1940 Act, are
included as Exhibit A to this Application. The verifications required by Rule 0-2(d) under the 1940 Act are included as Exhibit B to this
Application.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Pursuant to Rule 0-2(f) under the 1940 Act, Applicants state that
their address is <FONT STYLE="color: red"><STRIKE>443 N Willson Avenue Bozeman, MT 59715</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Worldwide
Plaza, 309 West 49th Street, New York, NY 10019</FONT> and that all written communications regarding this Application should be directed
to the individuals and addresses indicated on the cover page of this Application.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Applicants desire that the Commission issue the requested Order
pursuant to Rule 0-5 under the 1940 Act without conducting a hearing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">IX.&nbsp;CONCLUSION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">For the foregoing reasons, Applicants respectfully request that the Commission
issue an order under Section 6(c) of the 1940 Act exempting the Funds from the provisions of Section 19(b) of the 1940 Act and Rule 19b-1
thereunder to permit each Fund to make distributions on its common shares consisting in whole or in part of capital gain dividends as
frequently as twelve times in any one taxable year so long as it complies with the conditions of the Order and maintains in effect a Distribution
Policy with respect to its common shares as described in this Application. In addition, Applicants request that the Order permit each
Fund to make distributions on its preferred shares (if any) that it has issued or may issue in the future consisting in whole or in part
of capital gain dividends as frequently as specified by or determined in accordance with the terms thereof. Applicants submit that the
requested exemption is necessary or appropriate in the public interest, consistent with the protection of investors and consistent with
the purposes fairly intended by the policy and provisions of the 1940 Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 216pt; color: blue"><FONT STYLE="text-underline-style: double">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 216pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="color: red"><STRIKE>Destra Multi-Alternative</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Japan Smaller Capitalization</FONT> Fund<FONT STYLE="text-decoration: underline double; color: blue">, Inc.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="color: red">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 55%">Dated: <FONT STYLE="color: red"><STRIKE>October 18</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">December 4</FONT>, <FONT STYLE="color: red"><STRIKE>2024</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">2025</FONT></TD>
    <TD STYLE="width: 4%">By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 41%">/s/ <FONT STYLE="color: red"><STRIKE>Robert</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Neil</FONT> A. <FONT STYLE="color: red"><STRIKE>Watson</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Daniele</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD>Name: <FONT STYLE="color: red"><STRIKE>Robert</STRIKE></FONT> <FONT STYLE="text-decoration: underline double; color: blue">Neil</FONT>
    A. <FONT STYLE="color: red"><STRIKE>Watson</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Daniele</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD>Title: <FONT STYLE="color: red"><STRIKE>President</STRIKE></FONT> <FONT STYLE="text-decoration: underline double; color: blue">Secretary
    and Chief Compliance Officer</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
 <TR STYLE="vertical-align: top">
    <TD></TD>
    <TD COLSPAN="2"><FONT STYLE="color: red"><STRIKE>Destra Capital Advisors LLC.</STRIKE></FONT></TD></TR>
 <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
 <TR STYLE="vertical-align: top">
    <TD></TD>
    <TD COLSPAN="2"><FONT STYLE="text-decoration: underline double; color: blue">Nomura Asset Management U.S.A. Inc.</FONT></TD></TR>
 <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
 <TR STYLE="vertical-align: top">
    <TD STYLE="width: 55%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 41%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Dated: <FONT STYLE="color: red"><STRIKE>October 18</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">December 4</FONT>, <FONT STYLE="color: red"><STRIKE>2024</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">2025</FONT></TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ <FONT STYLE="color: red"><STRIKE>Robert</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Neil</FONT> A. <FONT STYLE="color: red"><STRIKE>Watson</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Daniele</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD>Name: <FONT STYLE="color: red"><STRIKE>Robert</STRIKE></FONT> <FONT STYLE="text-decoration: underline double; color: blue">Neil</FONT>
    A. <FONT STYLE="color: red"><STRIKE>Watson</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Daniele</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD>Title: <FONT STYLE="color: red"><STRIKE>President</STRIKE></FONT> <FONT STYLE="text-decoration: underline double; color: blue">Senior
    Managing Director and Chief Compliance Officer</FONT></TD></TR>
  </TABLE>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">EXPEDITED REVIEW REQUESTED UNDER 17 <FONT STYLE="color: red"><STRIKE>CFR</STRIKE></FONT><FONT STYLE="color: blue">C.F.R.</FONT>
270.0-5(d)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">UNITED STATES OF AMERICA BEFORE THE<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
WASHINGTON, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">IN THE MATTER OF:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: red">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: red"><STRIKE>SABA CAPITAL INCOME &amp; OPPORTUNITIES FUND II AND
SABA CAPITAL MANAGEMENT, L.P.</STRIKE></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: blue"><FONT STYLE="text-underline-style: double">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: blue"><FONT STYLE="text-decoration: underline double">JAPAN SMALLER
CAPITALIZATION FUND, INC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 300pt">&#9;APPLICATION PURSUANT TO SECTION 6(c) OF THE &#9;INVESTMENT COMPANY
ACT OF 1940, AS AMENDED &#9;(THE &ldquo;ACT&rdquo;) FOR AN ORDER GRANTING &#9;EXEMPTIONS FROM SECTION 19(b) OF THE ACT AND &#9;RULE 19b-1
THEREUNDER</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Investment Company Act of 1940 File No. 812-<FONT STYLE="color: red"><STRIKE>[
]</STRIKE></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">PLEASE SEND ALL COMMUNICATIONS AND ORDERS TO:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: red">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: red"><STRIKE>Michael S. Didiuk<BR>
Schulte Roth &amp; Zabel LLP<BR>
919 Third Avenue<BR>
New York, NY 10022<BR>
(212) 756-2405</STRIKE></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: blue"><FONT STYLE="text-underline-style: double">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: blue"><FONT STYLE="text-decoration: underline double">Jesse
C. Kean<BR>
Sidley Austin LLP<BR>
787 7th Avenue<BR>
New York, NY 10019<BR>
(212) 839-8615<BR>
jkean@sidley.com</FONT></P>



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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 10pt; text-align: center">WITH A COPY TO:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: red"><STRIKE>Michael D&rsquo;Angelo<BR>
Saba Capital Management, L.P.<BR>
405 Lexington Avenue, 58th Floor<BR>
New York, NY 10174</STRIKE></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: blue"><FONT STYLE="text-underline-style: double">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; color: blue"><FONT STYLE="text-decoration: underline double">Neil
Daniele<BR>
C/O Japan Smaller Capitalization Fund, Inc.<BR>
Worldwide Plaza<BR>
309 West 49th Street<BR>
New York, NY 10019</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">This Application (including Exhibits) consists of <FONT STYLE="color: red"><STRIKE>60</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">44</FONT>
pages<BR>
The Exhibit Index is on page <FONT STYLE="color: red"><STRIKE>14</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">13</FONT><BR>
As filed with the U.S. Securities and Exchange Commission on <FONT STYLE="color: red"><STRIKE>April 9</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">December
4</FONT>, <FONT STYLE="color: red"><STRIKE>2024</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">2025</FONT></P>


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    <!-- Field: /Page -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">I.&nbsp;INTRODUCTION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="color: red"><STRIKE>Saba Capital Income &amp; Opportunities</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Japan
Smaller Capitalization</FONT> Fund <FONT STYLE="color: red"><STRIKE>II (</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">,
Inc. (</FONT>the &ldquo;Fund&rdquo;) and <FONT STYLE="color: red"><STRIKE>Saba Capital</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Nomura
Asset</FONT> Management<FONT STYLE="color: red"><STRIKE>, L.P</STRIKE></FONT> <FONT STYLE="text-decoration: underline double; color: blue">U.S.A.
Inc</FONT>. (&ldquo;<FONT STYLE="color: red"><I><STRIKE>Saba</STRIKE></I></FONT><FONT STYLE="text-decoration: underline double; color: blue">NAM-U.S.A.</FONT>&rdquo;
and<FONT STYLE="text-decoration: underline double; color: blue">,</FONT> together with the Fund <FONT STYLE="color: red"><STRIKE>(</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">,</FONT>
the &ldquo;Applicants&rdquo;<FONT STYLE="color: red"><STRIKE>)</STRIKE></FONT>) hereby submit this application for an order (the &ldquo;Order&rdquo;)
of the Securities and Exchange Commission (the &ldquo;Commission&rdquo;) pursuant to Section 6(c) of the Investment Company Act of 1940,
as amended (the &ldquo;1940 Act&rdquo;), providing the Fund<FONT STYLE="color: red"><STRIKE>, </STRIKE></FONT> and each other closed-end
management investment company registered under the 1940 Act advised or to be advised in the future by <FONT STYLE="color: red"><STRIKE>Saba</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">NAM-U.S.A.</FONT>,
or by an entity controlling, controlled by or under common control (within the meaning of Section 2(a)(9) of the 1940 Act) with <FONT STYLE="color: red"><STRIKE>Saba</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">NAM-U.S.A.</FONT>
(including any successor in interest<SUP>1</SUP>) (each such entity, including <FONT STYLE="color: red"><STRIKE>Saba</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">NAM-U.S.A.</FONT>,
the &ldquo;Adviser&rdquo;) that in the future seeks to rely on the Order (such investment companies, together with the Fund, are collectively
referred to herein as the &ldquo;Funds&rdquo; and each separately as a &ldquo;Future Fund&rdquo;), an exemption from the provisions of
Section 19(b) of the 1940 Act and Rule 19b-1 thereunder, as more fully set forth below (the &ldquo;Application&rdquo;).<SUP>2</SUP> The
Fund and the Future Funds are hereinafter collectively referred to as the &ldquo;Funds&rdquo; and separately as a &ldquo;Fund<FONT STYLE="color: red"><STRIKE>.</STRIKE></FONT>&rdquo;<FONT STYLE="text-decoration: underline double; color: blue">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">II.&nbsp;THE APPLICANTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Fund <FONT STYLE="color: red"><STRIKE>(formerly, Templeton Global
Income Fund) </STRIKE></FONT>is organized as a <FONT STYLE="color: red"><STRIKE>Delaware statutory trust</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Maryland
corporation,</FONT> which is registered under the 1940 Act as a <FONT STYLE="color: red"><STRIKE>non-diversified</STRIKE></FONT>diversified,
closed-end management investment company and commenced operations on <FONT STYLE="color: red"><STRIKE>January 28, 1988. Effective January
1, 2024, the Fund changed its name to Saba Capital Income &amp; Opportunities Fund II</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">March
21, 1990</FONT>. The Fund&rsquo;s common shares are listed on the New York Stock Exchange <FONT STYLE="color: red"><STRIKE>(&ldquo;<I>NYSE</I>&rdquo;)</STRIKE></FONT>,
a national securities exchange as defined in Section 2(a)(26) of the 1940 Act. Although the Fund does not currently intend to issue preferred
shares, the board of <FONT STYLE="color: red; background-color: white"><STRIKE>trustees</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">directors</FONT>
of the Fund may authorize the issuance of preferred shares in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Fund&rsquo;s investment objective is to provide <FONT STYLE="color: red"><STRIKE>investors
with high current income, with a secondary goal of</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">shareholders
with long-term</FONT> capital appreciation<FONT STYLE="color: red"><STRIKE>. The Fund seeks to achieve its investment objective by investing
globally in debt and equity securities of public and private companies, which includes, among other things, investments in closed-end
funds, special purpose acquisition companies, reinsurance, public and private debt instruments. The Fund may also utilize derivatives,
including but not limited to total return swaps, credit default swaps, options (including but not limited to index options) and futures,
in seeking to enhance returns and/or to reduce portfolio risk. In addition, on an opportunistic basis, the Fund may also invest up to
15% of its total assets in private funds that focus on debt, equity or other investments consistent with the Fund&rsquo;s investment objective.</STRIKE></FONT>
<FONT STYLE="text-decoration: underline double; color: blue">and to invest, under normal circumstances, at least 80% of its total assets
in smaller capitalization Japanese equity securities traded on the Tokyo and Nagoya Stock Exchanges, and other indices or markets determined
by NAM-U.S.A. to be appropriate indices or markets for smaller capitalization companies in Japan.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">SabaNAM-U.S.A., with offices at <FONT STYLE="color: red"><STRIKE>405
Lexington Avenue, 58<SUP>th</SUP> Floor</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Worldwide Plaza, 309
West 49th Street</FONT>, New York, NY <FONT STYLE="color: red"><STRIKE>10174, serves as the investment adviser to the Fund. Saba</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">10019,</FONT>
is registered with the Commission as an investment adviser under the Investment Advisers Act of 1940, as amended<FONT STYLE="text-decoration: underline double; color: blue">,
and serves as the Fund&rsquo;s manager. NAM-U.S.A. is a wholly-owned subsidiary of Nomura Asset Management Co., Ltd. (&ldquo;NAM Tokyo&rdquo;).
NAM Tokyo serves as the Fund&rsquo;s investment adviser</FONT>. Subject to the oversight of the board of <FONT STYLE="color: red"><STRIKE>trustees</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">directors</FONT>
of the Fund, NAM Tokyo is responsible for managing the investment activities of the Fund and the Fund&rsquo;s business affairs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: red"><STRIKE>On October 15, 2023 shareholders of the Fund (&ldquo;<I>Shareholders</I>&rdquo;)
voted to approve a new investment management agreement between the Fund and Saba (such new investment management agreement, the &ldquo;<I>New
Management Agreement</I>&rdquo;). The New Management Agreement, which was effective January 1, 2024, replaced the previously effective
amended and restated investment management agreement, dated June 1, 2014, as amended on May 13, 2020, between the Fund and Franklin Advisers,
Inc. (&ldquo;<I>Franklin</I>&rdquo;), the Fund&rsquo;s previous investment adviser.</STRIKE></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: red">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: red"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>1</SUP> For the purposes of the requested
order, &ldquo;successor&rdquo; is limited to an entity that results from a reorganization into another jurisdiction or a change in
the type of business organization.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>2</SUP> The only registered closed-end investment
company that currently intends to rely on the Order has been named as an Applicant. Any Fund that may rely on the Order in the future
will comply with the terms and conditions of the Application.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="color: red"><STRIKE>Franklin and the Fund have previously
relied on an exemptive order (IC Rel. No. 30499) granting an exemption from Section 19(b) to allow the Fund to make periodic distributions
of long-term capital gains (&ldquo;<I>Existing Order</I>&rdquo;). As Saba has succeeded in the role of investment adviser of the Fund,
replacing Franklin, the Fund and Saba cannot rely on the Existing Order.</STRIKE></FONT><SUP>3</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">III.&nbsp;REQUEST FOR EXEMPTIVE
RELIEF</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Section 19(b) of the 1940 Act provides that it shall be unlawful
in contravention of such rules, regulations, or orders as the Commission may prescribe as necessary or appropriate in the public interest
or for the protection of investors for any registered investment company to distribute long-term capital gains, as defined in the Internal
Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;), more often than once every twelve months. Rule 19b-1 under the 1940 Act provides
that no registered investment company which is a &ldquo;regulated investment company&rdquo; as defined in Section 851 of the Code may
make more than (i) one &ldquo;capital gain dividend,&rdquo; as defined in Section 852(b)(3)(C) of the Code, in any one taxable year of
the company, (ii) one additional capital gain distribution made in whole or in part to avoid payment of excise tax under Section 4982
of the Code, plus (iii) one supplemental capital gain dividend pursuant to Section 855 of the Code (provided that it does not exceed 10%
of the total amount distributed for the taxable year).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Applicants believe that Rule 19b-1 should be interpreted to permit
a Fund to pay an unlimited number of distributions on its common and preferred shares (if any) so long as it makes the designation necessary
under the Code and Rule 19b-1 to characterize those distributions as &ldquo;capital gain dividends&rdquo; restricted by Rule 19b-1 only
as often as is permitted by Rule 19b-1, even if the Code would then require retroactively spreading the capital gain resulting from that
designation over more than the permissible number of distributions. However, to obtain certainty for a Fund&rsquo;s <FONT STYLE="color: red"><STRIKE>proposed
</STRIKE></FONT>distribution <FONT STYLE="color: red"><STRIKE>policies</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">policy</FONT>
(<FONT STYLE="color: red"><STRIKE>each</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">the</FONT>, <FONT STYLE="color: red"><STRIKE>a
</STRIKE></FONT>&ldquo;Distribution Policy&rdquo;), in the absence of such an interpretation, Applicants hereby request an order pursuant
to Section 6(c) of the 1940 Act granting an exemption from Section 19(b) of the 1940 Act and Rule 19b-1 thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="color: red"><STRIKE>The Order would permit each</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">The
Fund implemented its Distribution Policy while in a substantial capital loss carryover position and, accordingly, has not paid any &ldquo;capital
gain dividends&rdquo; since implementation because those carryovers have offset the Fund&rsquo;s realized capital gains. The requested
relief would allow the Fund to continue its Distribution Policy once those carryovers are exhausted by permitting distributions of long-term
capital gains in the form of &ldquo;capital gain dividends,&rdquo; as applicable. The Order would permit the Fund to continue making periodic
distributions in accordance with the Distribution Policy when future distributions include net realized long-term capital gains that are
not fully offset by capital loss carryover. Specially, the Order would permit the</FONT> Fund to make periodic capital gain dividends
(as defined in Section 852(b)(3)(C) of the Code) that include long-term capital gains as frequently as twelve times in any one taxable
year in respect of its <FONT STYLE="color: red"><STRIKE>outstanding </STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">shares
of beneficial interest (&ldquo;</FONT>common shares<FONT STYLE="text-decoration: underline double; color: blue">&rdquo;)</FONT> and as
often as specified by, or determined in accordance with the terms of, any preferred shares issued by the Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">IV.&nbsp;REPRESENTATIONS OF
APPLICANTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: blue">The Fund&rsquo;s Distribution Policy has been publicly disclosed
and implemented. The Fund is now making regular periodic distributions to common shareholders in accordance with its Distribution Policy.
To date, these distributions have been funded by the Fund&rsquo;s net investment income, and realized net long-term capital gains have
been entirely offset by the Fund&rsquo;s capital loss carryover, such that no net realized long-term capital gains have been distributed
in the form of &ldquo;capital gain dividends&rdquo;. The exemptive relief sought by this Application is intended to permit the Fund to
continue its Distribution Policy once the Fund&rsquo;s capital loss carryovers are exhausted, at which</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: blue">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: blue"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="color: red"><STRIKE><SUP>3</SUP> </STRIKE></FONT><FONT STYLE="color: red"><STRIKE>In reliance on the Commission
staff no-action letter issued to Innovator Capital Management, LLC, et al. (pub. avail. October 6, 2017) and oral discussions with the
Commission staff, the Applicants intend to rely on the Existing Order as if the Existing Order extended to the Adviser until the earlier
of the receipt of the Order or 150 days from January 1, 2024, the date of the New Management Agreement between the Fund and the Adviser.
During such time, the Adviser will comply with the terms and conditions in the Existing Order imposed on Franklin as though such terms
and conditions were imposed directly on the Adviser. When and if the Order is granted by the Commission, the Applicants would then rely
on the Order, rather than continuing to rely on the Existing Order.</STRIKE></FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt; color: blue"><FONT STYLE="text-decoration: underline double">point
future distributions under the Policy may include net realized long-term capital gains in the form of &ldquo;capital gain dividends&rdquo;.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Prior to a Fund&rsquo;s implementing a Distribution Policy<FONT STYLE="text-decoration: underline double; color: blue">,</FONT>
in reliance on the Order, the board of directors or trustees (the &ldquo;Board&rdquo;) of each Fund seeking to rely on the Order, including
a majority of the directors or trustees who are not interested persons of the Fund, as defined in Section 2(a)(19) of the 1940 Act (the
&ldquo;Independent Board Members&rdquo;), will request, <FONT STYLE="text-decoration: underline double; color: blue">or requested, as
the case may be,</FONT> and the Adviser will provide, <FONT STYLE="text-decoration: underline double; color: blue">or provided, as applicable,</FONT>
such information as is<FONT STYLE="text-decoration: underline double; color: blue">, or was,</FONT> reasonably necessary to make an informed
determination of whether the Board should adopt a proposed Distribution Policy. In particular, the Board and the Independent Board Members
will review<FONT STYLE="text-decoration: underline double; color: blue">, or reviewed, as the case may be,</FONT> information regarding
(i) the purpose and terms of the proposed Distribution Policy; (ii) the likely effects of the proposed Distribution Policy on the Fund&rsquo;s
long-term total return (in relation to market price and net asset value per share of common shares (&ldquo;NAV&rdquo;)); (iii) the expected
relationship between the Fund&rsquo;s distribution rate on its common shares under the proposed Distribution Policy and the Fund&rsquo;s
total return (in relation to NAV); (iv) whether the rate of distribution is anticipated to exceed the Fund&rsquo;s expected total return
in relation to its NAV; and (v) any foreseeable material effects of the proposed Distribution Policy on the Fund&rsquo;s long-term total
return (in relation to market price and NAV).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Independent Board Members <FONT STYLE="color: red"><STRIKE>will
</STRIKE></FONT>also <FONT STYLE="text-decoration: underline double; color: blue">considered, or will</FONT> consider<FONT STYLE="text-decoration: underline double; color: blue">,
as applicable,</FONT> what conflicts of interest the Adviser and the affiliated persons of the Adviser and the Fund might have with respect
to the adoption or implementation of the proposed Distribution Policy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Following this review, the Board, including the Independent Board
Members, of each Fund will, before adopting or implementing any proposed Distribution Policy, make a determination that the proposed Distribution
Policy is consistent with the Fund&rsquo;s investment objective(s) and in the best interests of the holders of the Fund&rsquo;s common
shares. The Distribution Policy will be consistent with the Fund&rsquo;s policies and procedures and will be described in the Fund&rsquo;s
registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">In addition, in <FONT STYLE="color: red"><STRIKE>prior to</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">in
connection with the</FONT> implementation of <FONT STYLE="color: red"><STRIKE>a</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">the</FONT>
Distribution Policy <FONT STYLE="color: red"><STRIKE>for any Fund pursuant to the Order requested by this Application</STRIKE></FONT>,
the Board <FONT STYLE="color: red"><STRIKE>of the Fund shall have</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">also</FONT>
adopted policies and procedures (the &ldquo;Section 19 Compliance Policies&rdquo;) pursuant to Rule 38a-1 under the 1940 Act that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">1.&nbsp;are reasonably designed
to ensure that all notices required to be sent to the Fund&rsquo;s <FONT STYLE="color: red"><STRIKE>Shareholders</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">shareholders</FONT>
pursuant to Section 19(a) of the 1940 Act, Rule 19a-1 thereunder<FONT STYLE="text-decoration: underline double; color: blue">,</FONT>
and by condition 4 <FONT STYLE="text-decoration: underline double; color: blue">of Part VI</FONT> below (each, a &ldquo;19(a) Notice&rdquo;)
include the disclosure required by Rule 19a-1 and by condition 2(a) <FONT STYLE="text-decoration: underline double; color: blue">of Part
VI </FONT>below, and that all other written communications by the Fund or its agents regarding distributions under the Distribution Policy
include the disclosure required by condition 3(a) <FONT STYLE="text-decoration: underline double; color: blue">of Part VI</FONT> below;
and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">2.&nbsp;require the Fund to
keep records that demonstrate its compliance with all of the conditions of the Order and that are necessary for the Fund to form the basis
for, or demonstrate the calculation of, the amounts disclosed in its 19(a) Notices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The records of the actions of the Board of each Fund will summarize
the basis for the Board&rsquo;s approval of the Distribution Policy, including its consideration of the factors described above. These
records will be maintained for a period of at least six years from the date of the applicable meeting, the first two years in an easily
accessible place, or for such longer period as may otherwise be required by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Generally, the purpose of a Distribution Policy would be to permit a Fund
to distribute periodically, over the course of each year, an amount closely approximating the total taxable income of the Fund during
the year through distributions in relatively equal amounts (plus any required special distributions) that are composed of payments received
from portfolio companies, supplemental amounts generally representing realized capital gains, or possibly, returns of capital that may
represent unrealized capital gains. The Fund seeks to establish a distribution rate that approximates the Fund&rsquo;s projected total
return that can reasonably be expected to be generated by the Fund over an extended period of time, although the distribution rate will
not be solely dependent on the amount of income earned or capital gains realized by the Fund for the year. Under the Distribution Policy
of a Fund, the Fund would distribute periodically (as frequently as twelve times in any taxable year) to its respective common shareholders
a fixed percentage of the market price of the Fund&rsquo;s common shares at a particular point in time or a fixed percentage of</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">NAV at a particular time or a fixed amount per share of common shares,
any of which may be adjusted from time to time. It is anticipated that under a Distribution Policy, the minimum annual distribution rate
with respect to the Fund&rsquo;s common shares would be independent of the Fund&rsquo;s performance during any particular period but would
be expected to correlate with the Fund&rsquo;s performance over time. Except for extraordinary distributions and potential increases or
decreases in the final dividend periods in light of the Fund&rsquo;s performance for an entire calendar year and to enable the Fund to
comply with the distribution requirements of Subchapter M of the Code for the calendar year each distribution on the Fund&rsquo;s common
shares would be at the stated rate then in effect. The Board will periodically review the amount of potential distributions in light of
the investment experience of the Fund and may modify or terminate a Distribution Policy at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">V.&nbsp;JUSTIFICATION FOR REQUESTED
RELIEF</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Section 6(c) of the 1940 Act provides that the Commission may exempt
any person, security<FONT STYLE="text-decoration: underline double; color: blue">,</FONT> or transaction from any provision of the 1940
Act or <FONT STYLE="color: red"><STRIKE>of</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">from</FONT> any
rule or regulation thereunder, if and to the extent that the exemption is necessary or appropriate in the public interest and consistent
with the protection of investors and the purposes fairly intended by the policy and provisions of the 1940 Act. For the reasons set forth
below, Applicants submit that the requested exemption from Section 19(b) of the 1940 Act and Rule 19b-1 thereunder would be consistent
with the standards set forth in Section 6(c) of the 1940 Act and in the best interests of the Funds and their respective shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">A.&nbsp;Receipt of the Order
would serve shareholder interests</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt"><FONT STYLE="text-decoration: underline double; color: blue">The
Fund implemented its Distribution Policy while in a substantial capital loss carryover position and, accordingly, has not paid any &ldquo;capital
gain dividends&rdquo; since implementation because those carryovers have offset the Fund&rsquo;s realized capital gains. The requested
relief would allow the Fund to continue its Distribution Policy once those carryovers are exhausted by permitting distributions of long-term
capital gains in the form of &ldquo;capital gain dividends,&rdquo; as applicable.</FONT> Applicants believe that closed-end fund investors
may prefer an investment vehicle that provides regular current income through fixed distribution policies that would be available through
a Distribution Policy. Allowing a Distribution Policy to operate in the manner described in this Application would help fill current investor
demand and foster competition in the registered fund market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">An exemption from Rule 19b-1 would benefit shareholders in another
way. Common shares of closed-end funds often trade in the marketplace at a discount to their NAV. Applicants believe that this discount
may be reduced if a Fund is permitted to pay relatively frequent dividends on its common shares at a consistent rate, whether or not those
dividends contain an element of long-term capital gains. Any reduction in the discount at which the Fund&rsquo;s common shares trade in
the market would benefit the holders of the Fund&rsquo;s common shares along with the Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">B.&nbsp;The Fund&rsquo;s shareholders
would receive information sufficient to clearly inform them of the nature of the distributions they are receiving</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">One of the concerns leading to the enactment of Section 19(b) and adoption
of Rule 19b-1 was that shareholders might be unable to distinguish between frequent distributions of capital gains and dividends from
investment income.<FONT STYLE="color: red"><SUP><STRIKE>4</STRIKE></SUP></FONT><SUP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: underline double; color: blue">3</FONT></SUP>
However, Rule 19a-1 under the 1940 Act effectively addresses this concern by requiring that distributions (or the confirmation of the
reinvestment thereof) estimated to be sourced in part from capital gains or capital be accompanied by a separate statement showing the
sources of the distribution (e.g., estimated net income, net short-term capital gains, net long-term capital gains<FONT STYLE="text-decoration: underline double; color: blue">,</FONT>
and/or return of capital). The same information will be included in each Fund&rsquo;s annual report to shareholders and on its Internal
Revenue Service (&ldquo;IRS&rdquo;) Form 1099-DIV, which will be sent to each common and preferred shareholder<FONT STYLE="color: red"><STRIKE>,
if any, </STRIKE></FONT> who received distributions during a particular year (including shareholders who have sold shares during the
year).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>4<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: underline double; color: blue">3</FONT></SUP>
<I>See</I> Securities and Exchange Commission 1966 Report to Congress on Investment Company Growth (H.R. Rep. No. 2337, 89th Cong. 2d
Sess. 190-95 (1966)); S. Rep. No. 91-184, 91st Cong., 1st Sess. 29 (1969); H.R. Rep. No. 91-1382, 91st Cong., 2d Sess. 29 (1970).</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">In addition, each of the Funds will make the additional disclosures
required by the conditions set forth in Part VI below, and each of them will adopt compliance policies and procedures in accordance with
Rule 38a-1 under the 1940 Act to ensure that all required notices and disclosures are sent to shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The information required by Section 19(a), Rule 19a-1, the Distribution
Policy, the Section 19 Compliance Policies<FONT STYLE="text-decoration: underline double; color: blue">,</FONT> and the conditions listed
below in <FONT STYLE="text-decoration: underline double; color: blue">Part VI</FONT> will help to ensure that each Fund&rsquo;s shareholders
are provided sufficient information to understand that their periodic distributions are not tied to the Fund&rsquo;s net investment income
(which for this purpose is the Fund&rsquo;s taxable income other than from capital gains) and realized capital gains to date, and may
not represent yield or investment return. Accordingly, subjecting the Funds to Section 19(b) and Rule 19b-1 would afford shareholders
no extra protection. In addition, the Funds will undertake to request intermediaries, or their agent(s), to forward 19(a) Notices to their
customers and to reimburse them for the costs of forwarding. Such forwarding may occur in any manner permitted by statute, rule<FONT STYLE="text-decoration: underline double; color: blue">,</FONT>
or order or by the staff of the Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">C.&nbsp;Under certain circumstances,
Rule 19b-1 gives rise to improper influence on portfolio management decisions, with no offsetting benefit to shareholders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Rule 19b-1, when applied to a Distribution Policy, <FONT STYLE="color: red"><STRIKE>may
give</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">actually gives</FONT> rise to one of the concerns that
Rule 19b-1 was intended to avoid: inappropriate influence on portfolio management decisions. <FONT STYLE="color: red"><STRIKE>Funds</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">A
registered fund</FONT> that <FONT STYLE="color: red"><STRIKE>pay</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">pays</FONT>
long-term capital gains distributions only once per year in accordance with Rule 19b-1 <FONT STYLE="color: red"><STRIKE>may </STRIKE></FONT>impose
<FONT STYLE="text-decoration: underline double; color: blue">no</FONT> pressure on management to realize capital gains at <FONT STYLE="color: red"><STRIKE>a</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">any</FONT>
time when <FONT STYLE="color: red"><STRIKE>prudent</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">purely</FONT>
investment considerations do not dictate doing so. In the absence of an exemption from Rule 19b-1, the adoption of a periodic distribution
plan imposes pressure on management (i) not to realize any net long-term capital gains until the point in the year that the fund can pay
all of its remaining distributions in accordance with Rule 19b-1 and (ii) not to realize any long-term capital gains during any particular
year in excess of the amount of the aggregate pay-out for the year (since as a practical matter excess gains must be distributed and accordingly
would not be available to satisfy pay-out requirements in <FONT STYLE="color: red"><STRIKE>subsequent</STRIKE></FONT><FONT STYLE="text-decoration: underline double">following</FONT>
years), notwithstanding that <FONT STYLE="color: red"><STRIKE>prudent</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">purely</FONT>
investment considerations might favor realization of long-term gains at different times <FONT STYLE="color: red"><STRIKE>or in different
amounts</STRIKE></FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">No purpose is served by the distortion in the normal operation of
a periodic distribution plan required in order to comply with Rule 19b-1. There is no benefit in requiring any <FONT STYLE="text-decoration: underline double; color: blue">registered
</FONT>fund that adopts a periodic distribution plan either to retain (and pay taxes on) long-term capital gains (with the resulting additional
tax return complexities for the fund&rsquo;s shareholders) or to avoid designating its distributions of long-term gains as capital gains
dividends for tax purposes (thereby avoiding a Rule 19b-1 problem but providing distributions taxable at ordinary income rates rather
than the much lower long-term capital gains rates). The desirability of avoiding these anomalous results creates pressure to limit the
realization of long-term capital gains that otherwise would be taken for purely investment considerations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Order requested by Applicants would minimize these anomalous
effects of Rule 19b-1 by enabling the Funds to realize long-term capital gains as often as investment considerations dictate without fear
of violating Rule 19b-1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">D.&nbsp;Other concerns leading
to adoption of Rule 19b-1 are not applicable</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Another concern that led to the enactment of Section 19(b) of the
1940 Act and adoption of Rule 19b-1 was that frequent capital gains distributions could facilitate improper fund share sales practices,
including, in particular, the practice of urging an investor to purchase shares of a fund on the basis of an upcoming capital gains dividend
(&ldquo;selling the dividend&rdquo;), where the dividend would result in an immediate corresponding reduction in NAV and would be in effect
a taxable return of the investor&rsquo;s capital. Applicants submit that this concern should not apply to closed-end investment companies,
such as the Funds, that do not continuously distribute shares. Furthermore, if the underlying concern extends to secondary market purchases
of shares of closed-end funds that are subject to a large upcoming capital gains dividend, adoption of a periodic distribution plan may
help minimize the concern by avoiding, through periodic distributions, any buildup of large end-of-the-year distributions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Applicants also submit that the &ldquo;selling the dividend&rdquo; concern
is not applicable to preferred shares, which entitles a holder to no more than a specified periodic dividend and, like a debt security,
is initially sold at a price based upon its liquidation preference, credit quality, dividend rate and frequency of payment. Investors
buy preferred shares for the purpose of receiving specific payments at the frequency bargained for, and any application of Rule 19b-1
to</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">preferred shares would be contrary to the expectation of investors.
There is also currently a tax rule that provides that any loss realized by a shareholder upon sale of shares of a regulated investment
company that were held for six months or less will be treated as a long-term capital loss, to the extent of any long-term capital gains
paid on such shares, to avoid the selling of dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">E.&nbsp;Further limitations
of Rule 19b-1</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Subparagraphs (a) and (f) of Rule 19b-1 limit the number of <FONT STYLE="text-decoration: underline double; color: blue">&ldquo;</FONT>capital
gains dividends,<FONT STYLE="text-decoration: underline double; color: blue">&rdquo;</FONT> as defined in Section 852(b)(3)(C) of the
Code, that a <FONT STYLE="text-decoration: underline double; color: blue">registered</FONT> fund may make with respect to any one taxable
year to one, plus a supplemental distribution made pursuant to Section 855 of the Code not exceeding 10% of the total amount distributed
for the year, plus one additional capital gain dividend made in whole or in part to avoid the excise tax under Section 4982 of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Applicants assert that by limiting the number of capital gain dividends
that a Fund may make with respect to any one year, Rule 19b-1 may prevent the normal and efficient operation of a periodic distribution
plan whenever that Fund&rsquo;s realized net long-term capital gains in any year exceed the total of the periodic distributions that
may include such capital gains under the rule. Rule 19b-1 thus may force the fixed regular periodic distributions to be funded with returns
of capital<FONT STYLE="color: red"><STRIKE><SUP>5</SUP></STRIKE></FONT><SUP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: underline double; color: blue">4</FONT></SUP>
(to the extent net investment income and realized short term capital gains are insufficient to fund the distribution), even though realized
net long-term capital gains otherwise would be available.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">To distribute all of a Fund&rsquo;s long-term capital gains within
the limits in Rule 19b-1, a Fund may be required to make total distributions in excess of the annual amount called for by its periodic
distribution plan or to retain and pay taxes on the excess amount. Applicants believe that the application of Rule 19b-1 to a Fund&rsquo;s
periodic distribution plan may create pressure to limit the realization of long-term capital gains based on considerations unrelated to
investment goals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Revenue Ruling 89-81<FONT STYLE="color: red"><STRIKE><SUP>6</SUP></STRIKE></FONT><SUP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: underline double; color: blue">5</FONT></SUP>
under the Code requires that a fund that seeks to qualify as a regulated investment company under the Code and that has both common shares
and preferred shares outstanding designate the types of income, <FONT STYLE="text-decoration: underline double; color: blue">(</FONT>e.g.,
investment income and capital gains<FONT STYLE="text-decoration: underline double; color: blue">)</FONT>, in the same proportion as the
total distributions distributed to each class for the tax year. To satisfy the proportionate designation requirements of Revenue Ruling
89-81, whenever a fund has realized a long-term capital gain with respect to a given tax year, the fund must designate the required proportionate
share of such capital gain to be included in common and preferred shares dividends. Although Rule 19b-1 allows a fund some flexibility
with respect to the frequency of capital gains distributions, a fund might use all of the exceptions available under Rule 19b-1 for a
tax year and still need to distribute additional capital gains allocated to the preferred shares to comply with Revenue Ruling 89-81.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The potential abuses addressed by Section 19(b) and Rule 19b-1 do
not arise with respect to preferred shares issued by a closed-end fund. Such distributions generally are either fixed or are determined
in periodic auctions or remarketings or are periodically reset by reference to short-term interest rates rather than by reference to performance
of the issuer, and Revenue Ruling 89-81 determines the proportion of such distributions that are <FONT STYLE="color: red"><STRIKE>comprised</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">composed</FONT>
of the long-term capital gains. The Applicants also submit that the &ldquo;selling the dividend&rdquo; concern is not applicable to preferred
shares, which entitles a holder to no more than a periodic dividend at a fixed rate or the rate determined by the market, and, like a
debt security, is priced based upon its liquidation value, dividend rate, credit quality, and frequency of payment. Investors buy preferred
shares for the purpose of receiving payments at the frequency bargained for and do not expect the liquidation value of their shares to
change.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The proposed Order will assist the Funds in avoiding these Rule
19b-1 problems.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">F.&nbsp;General</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The relief requested is that the Commission permit the Funds to make periodic
distributions in respect of their common shares as frequently as twelve times in any one taxable year and in respect of their preferred
shares as</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="color: red"><STRIKE><SUP>5</SUP></STRIKE></FONT><SUP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: underline double; color: blue">4</FONT></SUP>
These would be returns of capital for financial accounting purposes and not for tax accounting purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="color: red"><STRIKE><SUP>6</SUP></STRIKE></FONT><SUP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: underline double; color: blue">5</FONT></SUP>
1989-1 C.B. 226.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">specified by or determined in accordance with the terms thereof.
Granting this relief would provide the Funds with flexibility in meeting investor interest in receiving more frequent distributions. Implementation
of the relief would actually ameliorate the concerns that gave rise to Section 19(b) and Rule 19b-1 and help avoid the &ldquo;selling
<FONT STYLE="color: red"><STRIKE>the dividend</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">of dividends</FONT>&rdquo;
problem, which Section 19(b) and Rule 19b-1 are not effective in preventing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The potential issues under Rule 19b-1 are not relevant to distributions
on preferred shares. Not only are such distributions fixed or determined by the market rather than by reference to the performance of
the issuer but also the long-term capital gain component is mandated by the IRS to be the same proportion as the proportion of long-term
gain dividends bears to the total distributions in respect of the common shares and consequently the long-term gain component cannot even
be known until the end of the fund&rsquo;s fiscal year. In these circumstances it would be very difficult for any of the potential abuses
reflected in Rule 19b-1&rsquo;s restrictions to occur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">In summary, Rule 19b-1, in the circumstances referred to above,
is likely to distort the effective and proper functioning of a Fund&rsquo;s Distribution Policy and gives rise to the very pressures on
portfolio management decisions that Rule 19b-1 was intended to avoid. These distortions forced by Rule 19b-1 serve no purpose and are
not in the best interests of shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">VI.&nbsp;APPLICANTS&rsquo; CONDITIONS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Applicants agree that, with respect to each Fund seeking to rely
on the Order, the Order will be subject to each of the following conditions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">1.&nbsp;Compliance Review and
Reporting</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Fund&rsquo;s chief compliance officer will: (a) report to the
Fund&rsquo;s Board, no less frequently than once every three months or at the next regularly scheduled quarterly Board meeting, whether
(i) the Fund and <FONT STYLE="color: red"><STRIKE>its Adviser</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">NAM-U.S.A.</FONT>
have complied with the conditions of the Order and (ii) a <FONT STYLE="text-decoration: underline double; color: blue">&ldquo;</FONT>material
compliance matter<FONT STYLE="text-decoration: underline double; color: blue">&rdquo;</FONT> (as defined in Rule 38a-1(e)(2) under the
1940 Act) has occurred with respect to such conditions; and (b) review the adequacy of the policies and procedures adopted by the Board
no less frequently than annually.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">2.&nbsp;Disclosures to Fund
Shareholders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(a)&nbsp;Each 19(a) Notice disseminated
to the holders of the Fund&rsquo;s common shares, in addition to the information required by Section 19(a) and Rule 19a-1:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(i)&nbsp;will provide, in a
tabular or graphical format:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(1)&nbsp;the amount of the distribution,
on a per share of common shares basis, together with the amounts of such distribution amount, on a per share of common shares basis and
as a percentage of such distribution amount, from estimated: (A) net investment income; (B) net realized short-term capital gains; (C)
net realized long-term capital gains; and (D) return of capital or other capital source;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(2)&nbsp;the fiscal year-to-date
cumulative amount of distributions, on a per share of common shares basis, together with the amounts of such cumulative amount, on a per
share of common shares basis and as a percentage of such cumulative amount of distributions, from estimated: (A) net investment income;
(B) net realized short-term capital gains; (C) net realized long-term capital gains; and (D) return of capital or other capital source;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(3)&nbsp;the average annual
total return in relation to the change in NAV for the 5-year period (or, if the Fund&rsquo;s history of operations is less than five years,
the time period commencing immediately following the Fund&rsquo;s first public offering) ending on the last day of the month ended immediately
prior to the most recent distribution record date compared to the current fiscal period&rsquo;s annualized distribution rate expressed
as a percentage of NAV as of the last day of the month prior to the most recent distribution record date; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(4)&nbsp;the cumulative total return
in relation to the change in NAV from the last completed fiscal year to the last day of the month prior to the most recent distribution
record date<FONT STYLE="text-decoration: underline double; color: blue">,</FONT> compared to the fiscal year-to-date cumulative</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">distribution rate expressed as a percentage of NAV as of the last
day of the month prior to the most recent distribution record date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Such disclosure shall be made in a type size at least as large and
as prominent as the estimate of the sources of the current distribution; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(ii)&nbsp;will include the following
disclosure:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(1)&nbsp; &ldquo;You should
not draw any conclusions about the Fund&rsquo;s investment performance from the amount of this distribution or from the terms of the Fund&rsquo;s
Distribution Policy.&rdquo;;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(2)&nbsp; &ldquo;The Fund estimates
that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return
of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you.
A return of capital distribution does not necessarily reflect the Fund&rsquo;s investment performance and should not be confused with
&lsquo;yield&rsquo; or &lsquo;income&rsquo;&rdquo;;<FONT STYLE="color: red"><STRIKE><SUP>7</SUP></STRIKE></FONT><SUP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: underline double; color: blue">6</FONT></SUP>
and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(3)&nbsp; &ldquo;The amounts
and sources of distributions reported in this 19(a) Notice are only estimates and are not being provided for tax reporting purposes. The
actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund&rsquo;s investment experience during the
remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar
year that will tell you how to report these distributions for federal income tax purposes.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Such disclosure shall be made in a type size at least as large as
and as prominent as any other information in the 19(a) Notice and placed on the same page in close proximity to the amount and the sources
of the distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(b)&nbsp;On the inside front
cover of each report to shareholders under Rule 30e-1 under the 1940 Act, the Fund will:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(i)&nbsp;describe the terms
of the Distribution Policy (including the fixed amount or fixed percentage of the distributions and the frequency of the distributions);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(ii)&nbsp;include the disclosure
required by condition 2(a)(ii)(1) above;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(iii)&nbsp;state, if applicable,
that the Distribution Policy provides that the Board may amend or terminate the Distribution Policy at any time without prior notice to
Fund shareholders; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(iv)&nbsp;describe any reasonably
foreseeable circumstances that might cause the Fund to terminate the Distribution Policy and any reasonably foreseeable consequences of
such termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(c)&nbsp;Each report provided
to shareholders of a Fund under Rule 30e-1 under the 1940 Act<FONT STYLE="text-decoration: underline double; color: blue">,</FONT> and
each prospectus filed with the Commission on Form N-2 under the 1940 Act, will provide the Fund&rsquo;s total return in relation to changes
in NAV in the financial highlights table and in any discussion about the Fund&rsquo;s total return.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">3.&nbsp;Disclosure to Shareholders,
Prospective Shareholders and Third Parties</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(a)&nbsp;The Fund will include the
information contained in the relevant 19(a) Notice, including the disclosure required by condition 2(a)(ii) above, in any written communication
(other than a communication on Form 1099) about the Distribution Policy or distributions under the Distribution Policy by the Fund, or
agents that the Fund has authorized to make such communication on the Fund&rsquo;s behalf, to any Fund shareholder, prospective shareholder<FONT STYLE="text-decoration: underline double; color: blue">,</FONT>
or third-party information provider;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="color: red"><STRIKE><SUP>7</SUP></STRIKE></FONT><SUP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: underline double; color: blue">6</FONT></SUP>
The disclosure in this condition 2(a)(ii)(2) will be included only if the current distribution or the fiscal year-to-date cumulative distributions
are estimated to include a return of capital.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(b)&nbsp;The Fund will issue,
contemporaneously with the issuance of any 19(a) Notice, a press release containing the information in the 19(a) Notice and will file
with the Commission the information contained in such 19(a) Notice, including the disclosure required by condition 2(a)(ii) above, as
an exhibit to its next filed Form N-CSR; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(c)&nbsp;The Fund will post
prominently a statement on its (or <FONT STYLE="color: red"><STRIKE>the Adviser&rsquo;s</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">NAM-U.S.A.&rsquo;s</FONT>)
website containing the information in each 19(a) Notice, including the disclosure required by condition 2(a)(ii) above, and maintain such
information on such website for at least 24 months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">4.&nbsp;Delivery of 19(a) Notices
to Beneficial Owners</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">If a broker, dealer, bank<FONT STYLE="text-decoration: underline double; color: blue">,</FONT>
or other person (&ldquo;financial intermediary&rdquo;) holds common shares issued by the Fund in nominee name, or otherwise, on behalf
of a beneficial owner, the Fund:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(a)&nbsp;will request that the
financial intermediary, or its agent, forward the 19(a) Notice to all beneficial owners of the Fund&rsquo;s <FONT STYLE="color: red"><STRIKE>common
</STRIKE></FONT>shares held through such financial intermediary;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(b)&nbsp;will provide, in a
timely manner, to the financial intermediary, or its agent, enough copies of the 19(a) Notice assembled in the form and at the place that
the financial intermediary, or its agent, reasonably requests to facilitate the financial intermediary&rsquo;s sending of the 19(a) Notice
to each beneficial owner of the Fund&rsquo;s shares; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(c)&nbsp;upon the request of
any financial intermediary, or its agent, that receives copies of the 19(a) Notice, will pay the financial intermediary, or its agent,
the reasonable expenses of sending the 19(a) Notice to such beneficial owners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">5.&nbsp;Additional Board Determinations
for Funds Whose Common Shares Trade at a Premium</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">If:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(a)&nbsp;The Fund&rsquo;s common
shares have traded on the stock exchange that they primarily trade on at the time in question at an average premium to NAV equal to or
greater than 10%, as determined on the basis of the average of the discount or premium to NAV of the Fund&rsquo;s common shares as of
the close of each trading day over a 12-week rolling period (each such 12-week rolling period ending on the last trading day of each week);
and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(b)&nbsp;The Fund&rsquo;s annualized
distribution rate for such 12-week rolling period, expressed as a percentage of NAV as of the ending date of such 12-week rolling period,
is greater than the Fund&rsquo;s average annual total return in relation to the change in NAV over the 2-year period ending on the last
day of such 12-week rolling period;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">then:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(i)&nbsp;At the earlier of the
next regularly scheduled meeting or within four months of the last day of such 12-week rolling period, the Board, including a majority
of its Independent Board Members:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(1)&nbsp;will request and evaluate,
and <FONT STYLE="color: red"><STRIKE>the Fund&rsquo;s Adviser</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">NAM-U.S.A</FONT>.
will furnish, such information as may be reasonably necessary to make an informed determination of whether the Distribution Policy should
be continued or continued after amendment;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(2)&nbsp;will determine whether
continuation, or continuation after amendment, of the Distribution Policy is consistent with the Fund&rsquo;s investment objective(s)
and policies and is in the best interests of the Fund and its shareholders, after considering the information in condition 5(b)(i)(1)
above; including, without limitation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(A)&nbsp;whether the Distribution
Policy is accomplishing its purpose(s);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(B)&nbsp;the reasonably foreseeable
material effects of the Distribution Policy on the Fund&rsquo;s long-term total return in relation to the market price and NAV of the
Fund&rsquo;s common shares; and</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(C)&nbsp;the Fund&rsquo;s current
distribution rate, as described in condition 5(b) above, compared with the Fund&rsquo;s average annual taxable income or total return
over the 2-year period, as described in condition 5(b), or such longer period as the Board deems appropriate; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(3)&nbsp;based upon that determination,
will approve or disapprove the continuation, or continuation after amendment, of the Distribution Policy; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(ii)&nbsp;The Board will record
the information considered by it, including its consideration of the factors listed in condition 5(b)(i)(2) above, and the basis for its
approval or disapproval of the continuation, or continuation after amendment, of the Distribution Policy in its meeting minutes, which
must be made and preserved for a period of not less than six years from the date of such meeting, the first two years in an easily accessible
place.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">6.&nbsp;Public Offerings</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The Fund will not make a public offering of the Fund&rsquo;s common
shares other than:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(a)&nbsp;a rights offering below
NAV to holders of the Fund&rsquo;s common shares;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(b)&nbsp;an offering in connection
with a dividend reinvestment plan, merger, consolidation, acquisition, spin off or reorganization of the Fund; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(c)&nbsp;an offering other than
an offering described in conditions 6(a) and 6(b) above, provided that, with respect to such other offering:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(i)&nbsp;the Fund&rsquo;s annualized
distribution rate for the six months ending on the last day of the month ended immediately prior to the most recent distribution record
date,<FONT STYLE="color: red"><STRIKE><SUP>8</SUP></STRIKE></FONT><SUP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: underline double; color: blue">7</FONT></SUP>
expressed as a percentage of NAV as of such date, is no more than one percentage point greater than the Fund&rsquo;s average annual total
return for the 5-year period ending on such date;<FONT STYLE="color: red"><STRIKE><SUP>9</SUP></STRIKE></FONT><SUP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: underline double; color: blue">8</FONT></SUP> and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(ii)&nbsp;the transmittal letter
accompanying any registration statement filed with the Commission in connection with such offering discloses that the Fund has received
an order under Section 19(b) to permit it to make periodic distributions of <FONT STYLE="color: red"><STRIKE>long- term</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">long-term</FONT>
capital gains with respect to its common shares as frequently as twelve times each year, and as frequently as distributions are specified
by or determined in accordance with the terms of any outstanding shares of preferred shares as the Fund may issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">7.&nbsp;Amendments to Rule 19b-1</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">The requested Order will expire on the effective date of any amendment
to Rule 19b-1 that provides relief permitting certain closed-end investment companies to make periodic distributions of long-term capital
gains with respect to their outstanding common shares as frequently as twelve times each year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">VII.&nbsp;APPLICABLE PRECEDENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The Commission has recently granted substantially the same relief as that
sought herein in <FONT STYLE="text-decoration: underline double; color: blue">Destra Multi-Alternative Fund and Destra Capital Advisors
LLC, Investment Company Act Release Nos. 35381 (November 12, 2024) (notice) and 35412 (December 10, 2024) (order); Saba Capital Income
&amp; Opportunities Fund II and Saba Capital Management, L.P., Investment Company Act Release Nos. 35277 (July 5, 2024) (notice) and 35288
(July 31, 2024) (order);</FONT> High Income Securities Fund, et al., Investment Company Act Release Nos. 34373 (September 9, 2021)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="color: red"><STRIKE><SUP>8</SUP></STRIKE></FONT><FONT STYLE="color: green"><STRIKE>If the Fund has been in
operation fewer than six months, the measured period will begin immediately following the Fund&rsquo;s first public offering.</STRIKE></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: underline double; color: blue"><SUP>7</SUP></FONT>
<FONT STYLE="text-decoration: underline double; color: green">If the Fund has been in operation fewer than six months, the measured period
will begin immediately following the Fund&rsquo;s first public offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>9<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-decoration: underline double; color: blue">8</FONT></SUP>
If the Fund has been in operation fewer than five years, the measured period will begin immediately following the Fund&rsquo;s first public
offering.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">(notice) and 34395 (October 5, 2021) (order); First Eagle Global
Opportunities Fund and First Eagle Investment Management, LLC, Investment Company Act Release Nos. 34397 (October 12, 2021) (notice) and
34416 (November 9, 2021) (order); Mainstay CBRE Global Infrastructure Megatrends Fund, et al., Investment Company Act Release Nos. 34372
(September 3, 2021) (notice) and 34390 (September 29, 2021) (order); DoubleLine Opportunistic Credit, et al., Investment Company Act Release
Nos. 34328 (July 13, 2021) (notice) and 34353 (August 9, 2021) (order); Vertical Capital Income Fund and Oakline Advisors, LLC, Investment
Company Act Release Nos. 33505 (June 12, 2019) (notice) and 33548 (July 9, 2019) (order); Putnam Managed Municipal Income Trust, et al.,
Investment Company Act Release Nos. 33449 (April 17, 2019) (notice) and 33474 (May 14, 2019) (order); Macquarie Global Infrastructure
Total Return Fund Inc., et al., Investment Company Act Release Nos. 33389 (March 5, 2019) (notice) and 33436 (April 2, 2019) (order);
Special Opportunities Fund, Inc. and Bulldog Investors, LLC, Investment Company Act Release Nos. 33367 (February 4, 2019) and 33386 (March
4, 2019); Vivaldi Opportunities Fund and Vivaldi Asset Management, LLC, Investment Company Act Release Nos. 33147 (July 3, 2018) (notice)
and 33185 (July 31, 2018) (order); The Swiss Helvetia Fund, Inc., et al., Investment Company Act Release Nos. 33075 (April 23, 2018) (notice)
and 33099 (May 21, 2018) (order); The Mexico Equity &amp; Income Fund, Inc. and Pichardo Asset Management, S.A. de C.V., Investment Company
Act Release Nos. 32640 (May 18, 2017) (notice) and 32676 (June 13, 2017)(order); RiverNorth DoubleLine Strategic Opportunity Fund, Inc.
and RiverNorth Capital Management LLC, Investment Company Act Release Nos. 32635 (May 12, 2017) (notice) and 32673 (June 7, 2017) (order);
Brookfield Global Listed Infrastructure Income Fund Inc., et al., Investment Company Act Release Nos. 31802 (September 1, 2015) (notice)
and 31855 (September 30, 2015) (order); and Ares Dynamic Credit Allocation Fund, Inc., et al., Investment Company Act Release Nos. 31665
(June 9, 2015) (notice) and 31708 (July 7, 2015)(order).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">VIII.&nbsp;PROCEDURAL MATTERS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">All of the requirements for execution and filing of this Application
on behalf of the Applicants have been complied with in accordance with the applicable organizational documents of the Applicants, and
the undersigned officers of the Applicants are fully authorized to execute this Application. The <FONT STYLE="color: red"><STRIKE>resolutions</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">unanimous
written consent</FONT> of the Board <FONT STYLE="color: red"><STRIKE>of Trustees of the Fund</STRIKE></FONT>, authorizing the filing of
this Application, <FONT STYLE="text-decoration: underline double; color: blue">as</FONT> required by Rule 0-2(c) under the 1940 Act, are
included as Exhibit A to this Application. The verifications required by Rule 0-2(d) under the 1940 Act are included as Exhibit B to this
Application.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Pursuant to Rule 0-2(f) under the 1940 Act, Applicants state that
their address is <FONT STYLE="color: red"><STRIKE>405 Lexington Avenue, 58th Floor</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Worldwide
Plaza, 309 West 49th Street, New York</FONT>, NY <FONT STYLE="color: red"><STRIKE>10174</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">10019</FONT>
and that all written communications regarding this Application should be directed to the individuals and addresses indicated on the cover
page of this Application.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">Applicants desire that the Commission issue the requested Order
pursuant to Rule 0-5 under the 1940 Act without conducting a hearing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">IX.&nbsp;CONCLUSION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">For the foregoing reasons, Applicants respectfully request that
the Commission issue an order under Section 6(c) of the 1940 Act exempting the Funds from the provisions of Section 19(b) of the 1940
Act and Rule 19b-1 thereunder to permit each Fund to make distributions on its common shares consisting in whole or in part of capital
gain dividends as frequently as twelve times in any one taxable year so long as it complies with the conditions of the Order and maintains
in effect a Distribution Policy with respect to its common shares as described in this Application. In addition, Applicants request that
the Order permit each Fund to make distributions on its preferred shares (if any) that it has issued or may issue in the future consisting
in whole or in part of capital gain dividends as frequently as specified by or determined in accordance with the terms thereof. Applicants
submit that the requested exemption is necessary or appropriate in the public interest, consistent with the protection of investors and
consistent with the purposes fairly intended by the policy and provisions of the 1940 Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 280pt; color: red"><STRIKE>Saba Capital Income &amp; Opportunities Fund
II</STRIKE></P>


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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="text-underline-style: double; color: blue">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="text-decoration: underline double; color: blue">Japan Smaller Capitalization Fund, Inc.</FONT></P>
                    <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 55%">Dated: <FONT STYLE="color: red"><STRIKE>April 9</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">December 4</FONT>, <FONT STYLE="color: red"><STRIKE>2024</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">2025</FONT></TD>
    <TD STYLE="width: 4%">By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid; width: 41%">/s/ <FONT STYLE="color: red"><STRIKE>Pierre Weinstein</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Neil A. Daniele</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD>Name: <FONT STYLE="color: red"><STRIKE>Pierre Weinstein</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Neil
    A. Daniele</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD>Title: <FONT STYLE="text-decoration: underline double; color: blue">Secretary and </FONT>Chief <FONT STYLE="color: red"><STRIKE>Executive</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Compliance</FONT>
    Officer <FONT STYLE="color: red"><STRIKE>and Chairman of the Board of Trustees</STRIKE></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="text-underline-style: double; color: blue">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="color: red">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="color: red"><STRIKE>Saba Capital Management, L.P.</STRIKE></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="color: red">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="color: red">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="text-underline-style: double; color: blue">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="text-decoration: underline double; color: blue">Nomura Asset Management U.S.A. Inc.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="text-underline-style: double; color: blue">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="text-underline-style: double; color: blue">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Dated: <FONT STYLE="color: red"><STRIKE>April 9</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">December 4</FONT>, <FONT STYLE="color: red"><STRIKE>2024</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">2025</FONT></TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ <FONT STYLE="color: red"><STRIKE>Michael D&rsquo;Angelo</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Neil A. Daniele</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD>Name: <FONT STYLE="color: red"><STRIKE>Michael D&rsquo;Angelo</STRIKE></FONT><FONT STYLE="text-decoration: underline double; color: blue">Neil
    A. Daniele</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD>Title: <FONT STYLE="color: red"><STRIKE>General Counsel</STRIKE></FONT> <FONT STYLE="text-decoration: underline double; color: blue">Senior
    Managing Director and Chief Compliance Officer</FONT></TD></TR>
  </TABLE>

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