# Flaherty & Crumrine Preferred and Income Securities Fund

Flaherty & Crumrine Preferred and Income Securities Fund is an Asset Manager based in Pasadena, United States.

## Overview

- **Organization type:** Asset Manager
- **Headquarters:** Pasadena, United States
- **Region:** North America
- **Address:** Pasadena, CA, United States
- **Founded:** 2003
- **Assets under management:** Undisclosed
- **Website:** flahertycrumrine.com

## Regulatory record

- **Reports private funds:** No

## About

Flaherty & Crumrine Preferred and Income Securities Fund launched in 2003 as a New York Stock Exchange-listed closed-end fund trading under the ticker PFD. Donald F. Crumrine serves as chairman and R. Eric Chadwick as president, continuing the Flaherty & Crumrine franchise that has specialized in preferred and income-oriented securities since the 1980s. The fund's inception extended the firm's institutional preferred-securities capabilities into a vehicle accessible to retail and high-net-worth investors through brokerage accounts. The fund invests at least 80% of its assets in a concentrated portfolio of preferred and other income-producing securities, with heavy weightings toward the financial sector — primarily large US and European banks, insurance companies, and their regulatory-capital instruments. Holdings as reported in public filings include preferred shares of Bank of America, JPMorgan Chase, Wells Fargo, and MetLife. The portfolio blends fixed-to-floating rate securities, traditional fixed-rate preferreds, and trust-preferred structures, targeting high current income with a secondary emphasis on capital preservation. Geographic exposure skews domestically but includes select European bank issuers. As a closed-end fund, the vehicle employs moderate leverage to enhance yield, a structural feature common in the preferred-asset category. The fund's net asset value and market price are publicly daily, and the vehicle maintains a managed distribution policy, paying monthly dividends to shareholders. In September 2023, SEC filings confirmed the fund continued to operate under the same management contract with Flaherty & Crumrine Incorporated as investment adviser, with no material changes to fee structure or investment policy. The fund's structural differentiator is its listed closed-end wrapper, which creates an arbitrage between net asset value and market price that institutional allocators can exploit. Unlike open-end mutual funds or separate accounts that transact at NAV, PFD's shares trade at premiums or discounts to their underlying asset value, introducing an entry-timing dimension absent from private preferred-asset allocations. This structure also provides intraday liquidity for a typically illiquid institutional asset class, a feature that peer preferred-asset managers generally do not offer.

## Sectors

- Financial Services

## People

- R. Eric Chadwick — President
- Donald F. Crumrine — Chairman

## Questions

### Who runs investment decisions at the Flaherty & Crumrine Preferred and Income Securities Fund?

Donald F. Crumrine serves as chairman and R. Eric Chadwick as president of the fund. Both are senior principals at Flaherty & Crumrine Incorporated, the fund's investment adviser, which has managed preferred-securities portfolios since the 1980s. The adviser makes all buy-sell decisions and sets the fund's leverage and distribution policies.

### Which sectors does the fund concentrate on, and which does it avoid?

The fund concentrates heavily on the financial sector — principally large-cap US banks and insurers like Bank of America, JPMorgan Chase, and MetLife — with selective European financials. It explicitly avoids speculative-grade preferreds and generally does not invest in equity common stock of these issuers, maintaining its focus on senior and structurally senior income instruments.

### How is the fund related to other Flaherty & Crumrine vehicles?

The Preferred and Income Securities Fund is one of several listed closed-end funds managed by Flaherty & Crumrine Incorporated, alongside sister vehicles such as the Flaherty & Crumrine Preferred Securities Income Fund (FFC) and Flaherty & Crumrine Total Return Fund (FLC). All share the same investment adviser, overlapping portfolio management teams, and a common focus on institutional preferred and income securities.

### What is the fund's dividend posture?

The fund maintains a managed distribution policy, paying monthly dividends derived from net investment income and, when necessary, from capital gains or return of capital. The monthly frequency is designed to appeal to income-oriented retail and high-net-worth investors who use the vehicle for current cash flow. Tax character of distributions is reported annually on Form 1099-DIV.

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Last updated: 2026-06-03T20:00:00.000Z

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