Flaherty & Crumrine Preferred Income Fund (PFD) Changes Investment Policies Effective Feb. 21
The fund will change its investment policies effective February 21, 2017, loosening its credit rating rules for preferred securities. The new policy requires at least 85% of managed assets to be investment grade or issued by companies with investment grade issuer or senior unsecured debt ratings, and allows up to 15% in issuers rated below investment grade. The adviser says this reflects a shift in the preferred market, where only about 62% now carries an investment grade rating from at least one agency, down from 90% before the financial crisis.
Key points
- Change effective February 21, 2017
- Minimum investment grade threshold rises to 85% of managed assets, judged by security or issuer rating
- Up to 15% may be held in securities rated below Ba3/BB-/BB- or from issuers with below investment grade ratings
- Adviser says it has no current intention to buy securities rated B and below
The filing
Written by AI on Nov 9, 2026, 8:28 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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