Flaherty & Crumrine Incorporated

Flaherty & Crumrine Incorporated, established in 1983, specializes in managing preferred securities portfolios. The firm is independently owned, with 50.2% of shares owned by employees and the rest by retired employees. They manage assets for various funds, including closed-end investment companies and open-end investment companies. As of December 31, 2022, the firm's regulatory assets under management were approximately $3.94 billion. Flaherty & Crumrine charges fees based on the market value of assets managed, with annual fee rates ranging from 0.35% to 0.45%, with a minimum fee of $150,000. The firm primarily invests in preferred securities, contingent capital securities, and similar debt securities, focusing on after-tax income and interest-rate hedging strategies. Flaherty & Crumrine's investment strategies are based on internally generated research, public filings, industry data, and interactions with management. The firm discloses various risks associated with investing, including market risk, credit risk, interest rate risk, and derivatives risk. Flaherty & Crumrine is a registered investment adviser and does not charge any fees based on client transactions. The firm has a code of ethics in place to ensure compliance with applicable laws and regulations, and they do not engage in soft dollar practices or principal transactions for client accounts.