Flaherty & Crumrine Preferred Income Opportunity Fund Inc.

Frequently Asked Questions About PFO

What does PFO invest in?

Flaherty & Crumrine Preferred Income Opportunity Fund Inc. is a closed ended equity mutual fund launched and managed by Flaherty & Crumrine Incorporated. The fund invests in the public equity markets of the United States. It invests in stocks of companies operating in the financial services sector. The fund primarily invests in preferred securities. It benchmarks the performance of its portfolio against S&P 500 Index and Barclays Capital U.S. Aggregate Index. Flaherty & Crumrine Preferred Income Opportunity Fund Inc. was formed on December 10, 1991 and is domiciled in the United States.

What is the expense ratio of PFO?

Flaherty & Crumrine Preferred Income Opportunity Fund Inc. (PFO) charges an expense ratio of 4.62%. This is the annual fee deducted from fund assets to cover management and operations.

What is PFO's dividend yield?

PFO's trailing-twelve-month yield is 6.80%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of PFO?

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

What is the credit quality of PFO?

PFO'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 PFO?

Yield to maturity (YTM) is the total return you'd earn from PFO if every bond in the portfolio is held to maturity at the current price. PFO'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.