If the Variable Annuity Life Insurance Company (VALIC) of Houston, Texas has its way, the USLife Income Fund, a $53 million closed-end fund it manages, will head in a new direction. VALIC is a unit of American General Annuity Insurance Company, also of Houston.

The fund's adviser is asking shareholders to approve several proposals including allowing the fund to issue a second class of preferred shares of the fund, or issue senior securities, according to a proxy statement filed with the SEC August 2. The capital raised by the issuance of these securities would be used to invest in below investment grade or "junk" bonds, according to the proxy.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.