Flaherty & Crumrine Preferred Income Fund Inc.

Frequently Asked Questions About PFD

What does PFD invest in?

The Flaherty & Crumrine Preferred Income Fund Inc. is a closed-end mutual fund, managed by Flaherty & Crumrine Incorporated, primarily investing in preferred securities within the public equity markets of the United States. The fund concentrates its holdings on companies operating in the financial sector. Its performance is benchmarked against both the Barclays Capital U.S. Aggregate Index and the S&P 500 Index. This U.S.-domiciled fund was established on September 28, 1990.

What is the expense ratio of PFD?

Flaherty & Crumrine Preferred Income Fund Inc. (PFD) charges an expense ratio of 4.31%. This is the annual fee deducted from fund assets to cover management and operations.

What is PFD's dividend yield?

PFD's trailing-twelve-month yield is 7.23%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of PFD?

Effective duration measures PFD's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. PFD's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of PFD?

PFD's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of PFD?

Yield to maturity (YTM) is the total return you'd earn from PFD if every bond in the portfolio is held to maturity at the current price. PFD's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.