Preferred Income Fund, Preferred Income Opportunity Fund, preferred stocks
2006 Tax Information (as a Percent of Total Distributions)

Flaherty & Crumrine Preferred Income Fund (PFD)
Calendar Year 2006
 
Individual
  
Corporation
 
QDI
Ordinary
Income
DRD
Ordinary
Income
Common Stock
76.07%
23.93%
 
70.23%
29.77%
MMPâ (Money Market Preferred)
75.82%
24.18%
 
69.85%
30.15%


Flaherty & Crumrine Preferred Income Opportunity Fund (PFO)
Calendar Year 2006
 
Individual
  
Corporation
 
QDI
Ordinary
Income
DRD
Ordinary
Income
Common Stock
78.22%
21.78%
 
71.76%
28.24%
MMPâ (Money Market Preferred)
78.09%
21.91%
 
71.56%
28.44%

 

For Individual investors, a portion of the distributions consisted of Qualified Dividend Income ("QDI") eligible for the maximum 15% personal tax rate.

For corporate investors, a portion of the distributions consisted of income eligible for the inter-corporate Dividends Received Deduction ("DRD").

 

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