Flaherty & Crumrine Preferred Securities Income Fund changes ratings policy Feb. 21
Effective February 21, 2017, the fund will change its investment ratings policy. Under the new policy, at least 90% of managed assets must be rated investment grade or issued by companies whose issuer or senior unsecured debt is investment grade, up from at least 80% of securities rated investment grade under the old policy. The adviser says the change addresses a shift in the preferred market, where investment-grade preferreds now make up about 62% of the market versus 90% before the financial crisis.
Key points
- Effective date: February 21, 2017
- New policy: at least 90% of managed assets rated investment grade or issued by investment-grade issuers, versus at least 80% of securities under the old policy
- Fund may hold below-investment-grade securities of investment-grade issuers, subject to a 10% limit
- Adviser says investment-grade preferreds are about 62% of the market, down from 90% before the financial crisis; it has no current intention to buy securities rated B and below
The filing
Written by AI on Nov 9, 2026, 8:36 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on January 20, 2017.
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