Safeguarding the nonpublic personal information of our registered shareholders is of great importance to the Preferred Income Funds.

We collect nonpublic personal information about the Funds' registered shareholders, including information such as name, address, tax I.D. #, Social Security # and instructions regarding the Funds' Dividend Reinvestment Plan, from the following sources:

• The registered shareholder's broker or prior custodian as the shares are initially transferred into registered form.
• Directly from the registered shareholder or his or her agent.

We do not disclose any nonpublic personal information about our current or former registered shareholders to anyone, except as permitted by law. Such disclosures as we do make are primarily to the Funds' service providers as necessary to maintain account records and provide information to our shareholders.

We restrict access to nonpublic personal information about our registered shareholders through password protection to individuals requiring the information to service our shareholder's needs. We maintain physical, electronic, and procedural safeguards that comply with federal standards to guard the shareholders' nonpublic personal information in our possession.