Welcome to The Flaherty & Crumrine
Preferred Income Fund...

The Flaherty & Crumrine Preferred Income Fund ("PFD") is a closed-end, diversified investment company which invests primarily in preferred stocks. It commenced investment operations in January, 1991 through an initial public offering of common stock. The Fund was subsequently leveraged by issuing Money Market Cumulative Preferred(TM) Stock ("MMP®") and currently has $80,000,000 of the MMP® outstanding. At December 31, 2007 there were 10,550,676 common shares outstanding.

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. Naturally, the Fund will be significantly impacted by developments affecting these two industries.

The investment objective of the Fund is high current income for holders of its common stock consistent with preservation of capital. What makes the Fund unusual, however, is the use of strategies which are expected to result in the Fund's income increasing as long-term interest rates rise significantly, while being relatively resistant to declines in long-term interest rates.

To learn more about the Fund, click the appropriate buttons above to see performance results, past and current income, and the portfolio overview. Also, a detailed description is available for both the Preferred Income Fund and the Preferred Income Opportunity Fund on "The Basics" page.