Fund Description: Flaherty & Crumrine Preferred Income Fund is an exchange-traded closed-end fund or a closed-end ETF which is officially described as a diversified, closed-end management investment company. INVESTMENT OBJECTIVE: The investment objective of the Fund is high current income for holders of its common stock consistent with preservation of capital. FUND STRATEGY: In seeking its objectives, the Fund normally will invest at least 80% of its total assets in a diversified portfolio of preferred securities, some or all of which are expected to be hedged. The Fund may also invest up to 20% of its total assets in debt securities and up to 15% of its total assets in common stocks. The portions of the Fund's assets invested in various types of preferred, debt or common stock may vary from time to time depending on market conditions. The portion of securities that the Fund will hedge, as well as the types of hedge positions utilized, may also vary significantly from time to time. At least 75% of the securities that the Fund will acquire will be rated investment grade. The Preferred Income Fund concentrates its investments in the Utility and Banking industries. Positions will vary from time to time, but normally utilities and banks will each account for at least 25% of the Fund’s portfolio. The Fund will invest primarily in the securities of U.S. issuers. However, the Fund may invest up to 30% of total assets in the securities other than money market securities of companies organized outside the United States. FUND MANAGEMENT: Flaherty & Crumrine Incorporated, a registered investment adviser, acts as the Fund's investment adviser. The Adviser has been active in the management of portfolios of preferred securities, including related interest rate hedging activities, since 1983.