Zazove Convertible

Securities Fund, Inc.

Fund Investment Objectives

Implements a quantitative-based investment strategy designed to create and manage a diversified portfolio of convertible securities. Management is anchored by a propriety valuation model that identifies statistically undervalued convertible securities with attractive risk/reward characteristics. Currently intends to invest at least 80% of its assets in a diversified portfolio of convertible securities with an investment grade average credit rating. The remaining portion of the assets will be invested in a lower rated and special situation convertible security. These securities present a unique opportunity to achieve superior risk adjusted returns in an inefficient segment of the convertible securities market. Please note: 2% Management Fee on first $20 million, 1.5% on assets in excess of $20 million and 1% over $70 million.