# EDGAR Filing Document

**Accession Number:** 0000868578
**File Stem:** 0001387131-23-002716
**Filing Date:** 2023-3
**Character Count:** 60279
**Document Hash:** f91a7b9a354c0c9b4fe72cbe1bb0bf22
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001387131-23-002716.hdr.sgml**: 20230302

**ACCESSION NUMBER**: 0001387131-23-002716

**CONFORMED SUBMISSION TYPE**: DEF 14A

**PUBLIC DOCUMENT COUNT**: 4

**CONFORMED PERIOD OF REPORT**: 20230419

**FILED AS OF DATE**: 20230302

**DATE AS OF CHANGE**: 20230302

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FLAHERTY & CRUMRINE PREFERRED & INCOME FUND INC
- **CENTRAL INDEX KEY:** 0000868578
- **IRS NUMBER:** 954305694
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1130

**FILING VALUES:**
- **FORM TYPE:** DEF 14A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 811-06179
- **FILM NUMBER:** 23698389

**BUSINESS ADDRESS:**
- **STREET 1:** 301 E COLORADO BLVD STE 800
- **STREET 2:** C/O FLAHERTY & CRUMRINE INC
- **CITY:** PASADENA
- **STATE:** CA
- **ZIP:** 91101
- **BUSINESS PHONE:** (626) 795-7300

**MAIL ADDRESS:**
- **STREET 1:** 301 E COLORADO BLVD STE 800
- **STREET 2:** C/O FLAHERTY & CRUMRINE INC
- **CITY:** PASADENA
- **STATE:** CA
- **ZIP:** 91101

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FLAHERTY & CRUMRINE PREFERRED INCOME FUND INC
- **DATE OF NAME CHANGE:** 20050708

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PREFERRED INCOME FUND INC
- **DATE OF NAME CHANGE:** 19920703

SCHEDULE 14A

PROXY STATEMENT

PURSUANT TO SECTION 14(A) OF THE SECURITIES EXCHANGE ACT OF 1934

Filed by Registrant ☒

Filed by Party other than the Registrant

Check the appropriate box:

☐ Preliminary Proxy Statement

☐ Confidential for Use of the Commission Only as permitted by Rule 14a-6(e)(2)

☒ Definitive Proxy Statement

☐ Definitive Additional Materials

☐ Soliciting Material Pursuant to Rule 14a-11c or Rule 14a-12

<u>Flaherty & Crumrine Preferred and Income Fund Incorporated</u>

(Name of Registrant as Specified in Its Charter)

_______________________________________

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

☒ No fee required <br> ☐ Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11

(1) Title
 of each class of securities to which transaction applies: ________________________________________________

(2) Aggregate
 number of securities to which transaction applies: ________________________________________________

(3) Per
 unit price or other underlying value of transaction computed pursuant to Exchange Act
 Rule 0-11. (Set forth the amount on which the filing fee is calculated and state how
 it was determined): ________________________________________________________

(4) Proposed
 maximum aggregate value of transaction: _______________________________________________________

(5) Total
 fee paid: ___________________________________________________________________________________

☐ Fee paid previously with preliminary materials.

☐ Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

(1) Amount previously paid: __________________________________________________________________________

(2) Form, Schedule or Registration Statement No.: __________________________________________________________

(3) Filing Party: _________________________________________________________________________________

(4) Date Filed: __________________________________________________________________________________

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| | |
|:---|:---|
| **FLAHERTY & CRUMRINE PREFERRED AND INCOME FUND INCORPORATED** | **(NYSE: PFD)** |
| **FLAHERTY & CRUMRINE PREFERRED AND INCOME OPPORTUNITY FUND INCORPORATED** | **(NYSE: PFO)** |
| **FLAHERTY & CRUMRINE PREFERRED AND INCOME SECURITIES FUND INCORPORATED** | **(NYSE: FFC)** |
| **FLAHERTY & CRUMRINE TOTAL RETURN FUND INCORPORATED** | **(NYSE: FLC)** |
| **FLAHERTY & CRUMRINE DYNAMIC PREFERRED AND INCOME FUND INCORPORATED** | **(NYSE: DFP)** |

---

301 E. Colorado Boulevard, Suite 800<br>Pasadena, California 91101

**NOTICE OF ANNUAL MEETINGS OF SHAREHOLDERS<br>To Be Held on April 19, 2023**

To the Shareholders:

Notice is hereby given that the Annual Meetings of Shareholders (the "Annual Meetings") of Flaherty & Crumrine Preferred and Income Fund Incorporated, Flaherty & Crumrine Preferred and Income Opportunity Fund Incorporated, Flaherty & Crumrine Preferred and Income Securities Fund Incorporated, Flaherty & Crumrine Total Return Fund Incorporated and Flaherty & Crumrine Dynamic Preferred and Income Fund Incorporated (each, a "Fund" and collectively, the "Funds"), each a Maryland corporation, will be held on April 19, 2023, at 8:00 a.m. PDT, at the offices of Flaherty & Crumrine Incorporated, 301 E. Colorado Boulevard, Suite 800, Pasadena, California 91101, for the following purposes:

Each Fund:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.To elect a Director of each Fund (Proposal 1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.To transact such other business as may properly come before the Annual Meetings or any adjournments or postponements thereof.

**Your vote is important!**

The Board of Directors of each Fund has fixed the close of business on January 20, 2023 as the record date for the determination of shareholders of each Fund entitled to notice of, and to vote at, the Annual Meetings and any adjournments or postponements thereof.

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| | |
|:---|:---|
|  | By Order of the Boards of Directors, |
|  March 2, 2023 | Chad C. Conwell |
|  | *Secretary* |

---

&nbsp;&nbsp;&nbsp; **Important Notice Regarding the Availability of Proxy Materials for the Annual Meetings to be<br>Held on April 19, 2023**<br> **The notice of Annual Meetings, Joint Proxy Statement, proxy cards and each Fund's annual report, including audited financial statements for the fiscal year ended November 30, 2022, are available to you on the Funds' website - www.preferredincome.com or upon request, without charge, by writing to Computershare Inc., P.O. Box 505000, Louisville, KY, 40233-5000, United States, or by calling 1-866-351-7446 (U.S. toll-free) or 1-201-680-6578 (International). You are encouraged to review all of the information contained in the proxy materials before voting.**<br> **To obtain directions to attend the Annual Meetings and vote in person, please call 1-626-795-7300.**<br> **SEPARATE PROXY CARDS ARE ENCLOSED FOR EACH FUND IN WHICH YOU OWN SHARES. YOUR VOTE IS IMPORTANT REGARDLESS OF THE SIZE OF YOUR HOLDINGS IN THE FUND. WHETHER OR NOT YOU PLAN TO ATTEND THE RELEVANT ANNUAL MEETING(S), WE ASK THAT YOU PLEASE VOTE PROMPTLY. INSTRUCTIONS FOR THE PROPER VOTING AND/OR EXECUTION OF PROXIES ARE SET FORTH ON THE INSIDE COVER. SHAREHOLDERS MAY SUBMIT VOTING INSTRUCTIONS BY SIGNING AND DATING THE PROXY CARD OR VOTING INSTRUCTION FORM AND RETURNING IT IN THE ACCOMPANYING POSTAGE-PAID ENVELOPE.**<br>

**INSTRUCTIONS FOR SIGNING PROXY CARDS**

The following general rules for signing proxy cards may be of assistance to you and may minimize the time and expense to the Fund(s) involved in validating your vote if you fail to sign your proxy card(s) properly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.*Individual Accounts:* Sign your name exactly as it appears in the registration on the proxy card(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.*Joint Accounts:* Either party may sign, but the name of the party signing should conform exactly to a name shown in the registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.*All Other Accounts:* The capacity of the individual signing the proxy card should be indicated unless it is reflected in the form registration. For example:

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| | |
|:---|:---|
| <u><u>Registration</u></u> | <u><u>Valid Signature</u></u> |
| Corporate Accounts |  |
| (1)ABC Corp. | ABC Corp. |
| (2)ABC Corp. | John Doe, Treasurer |
| (3)ABC Corp. c/o John Doe, Treasurer | John Doe |
| (4)ABC Corp. Profit Sharing Plan | John Doe, Trustee |
| Trust Accounts |  |
| (1)ABC Trust | Jane B. Doe, Trustee |
| (2)Jane B. Doe, Trustee u/t/d 12/28/78 | Jane B. Doe |
| Custodian or Estate Accounts |  |
| (1)John B. Smith, Cust.,<br>f/b/o John B. Smith, Jr. UGMA | John B. Smith |
| (2)John B. Smith, Executor,<br>Estate of Jane Smith | John B. Smith, Executor |

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**ANNUAL MEETINGS OF SHAREHOLDERS<br>April 19, 2023<br>JOINT PROXY STATEMENT**

This document is a joint proxy statement ("Joint Proxy Statement") for Flaherty & Crumrine Preferred and Income Fund Incorporated ("Preferred and Income Fund" or "PFD"), Flaherty & Crumrine Preferred and Income Opportunity Fund Incorporated ("Preferred and Income Opportunity Fund" or "PFO"), Flaherty & Crumrine Preferred and Income Securities Fund Incorporated ("Preferred and Income Securities Fund" or "FFC"), Flaherty & Crumrine Total Return Fund Incorporated ("Total Return Fund" or "FLC") and Flaherty & Crumrine Dynamic Preferred and Income Fund Incorporated ("Dynamic Preferred Income Fund" or "DFP") (each, a "Fund" and collectively, the "Funds"). This Joint Proxy Statement is furnished in connection with the solicitation of proxies by each Fund's Board of Directors (each, a "Board" and collectively, the "Boards") to be voted at the Annual Meeting of Shareholders for each Fund to be held on April 19, 2023, at 8:00 a.m. PDT, at the offices of Flaherty & Crumrine Incorporated, 301 E. Colorado Boulevard, Suite 800, Pasadena, California 91101 and at any adjournments or postponements thereof (each, an "Annual Meeting" and collectively, the "Annual Meetings").

This Joint Proxy Statement and the accompanying Notice of Annual Meetings and proxy card for each Fund in which you own shares were mailed on or about March 2, 2023 to shareholders of record as of the close of business on January 20, 2023. Proxy solicitations will be made, beginning on or about March 2, 2023, primarily by mail, but proxy solicitations may also be made by telephone, Internet, facsimile, e-mail, or personal interviews conducted by officers of each Fund, Flaherty & Crumrine Incorporated ("Flaherty & Crumrine"), the investment adviser of each Fund, Computershare Trust Company, N.A. ("Computershare"), the transfer agent of each Fund, and The Bank of New York Mellon ("BNY Mellon"), the administrator of each Fund. With respect to FFC, FLC and DFP, proxy solicitations may also be made by Destra Capital Advisors LLC, the servicing agent for FFC, FLC and DFP. No proxy solicitation firm will be used in connection with this Joint Proxy Statement.

The Funds will evenly split the expenses incurred in connection with the preparation of this Joint Proxy Statement and hosting of the Annual Meetings. Each Fund will pay for its respective expenses incurred in connection with printing and mailing of this Joint Proxy Statement and its enclosures to shareholders. Each Fund also will reimburse brokerage firms and others for their expenses in forwarding solicitation material to the beneficial owners of its shares.

References to the websites above or herein do not incorporate their content into this Joint Proxy Statement.

&nbsp;&nbsp;&nbsp; **Important Notice Regarding the Availability of Proxy Materials for the Annual Meetings to be<br>Held on April 19, 2023**<br> **The notice of Annual Meetings, Joint Proxy Statement, proxy cards and each Fund's annual report, including audited financial statements for the fiscal year ended November 30, 2022, are available to you on the Funds' website - www.preferredincome.com or upon request, without charge, by writing to Computershare Inc., P.O. Box 505000, Louisville, KY, 40233-5000, United States, or by calling 1-866-351-7446 (U.S. toll-free) or 1-201-680-6578 (International). Each Fund's annual report is also available on the Securities and Exchange Commission's ("SEC") website (www.sec.gov) or, for FFC, FLC and DFP only, by calling Destra Capital Advisors LLC at 1-877-855-3434. You are encouraged to review all of the information contained in the proxy materials before voting.**<br> **To obtain directions to attend the Annual Meetings, and vote in person, please call 1-626-795-7300.**<br> **SEPARATE PROXY CARDS ARE ENCLOSED FOR EACH FUND IN WHICH YOU OWN SHARES. YOUR VOTE IS IMPORTANT REGARDLESS OF THE SIZE OF YOUR HOLDINGS IN THE FUND. WHETHER OR NOT YOU PLAN TO ATTEND THE RELEVANT ANNUAL MEETING(S), WE ASK THAT YOU PLEASE VOTE PROMPTLY. INSTRUCTIONS FOR THE PROPER VOTING AND/OR EXECUTION OF PROXIES ARE SET FORTH ON THE INSIDE COVER. SHAREHOLDERS MAY SUBMIT VOTING INSTRUCTIONS BY SIGNING AND DATING THE PROXY CARD OR VOTING INSTRUCTION FORM AND RETURNING IT IN THE ACCOMPANYING POSTAGE-PAID ENVELOPE.**<br>

If the enclosed proxy card(s) are properly executed and returned in time to be voted at the relevant Annual Meeting(s), the Shares (as defined below) represented thereby will be voted in accordance with the instructions marked thereon. Unless instructions to the contrary are marked thereon, a proxy will be voted "FOR" Proposal 1 at the relevant Annual Meeting. Any shareholder who has given a proxy has the right to revoke it at any time prior to its exercise either by attending the relevant Annual Meeting and voting his or her Shares in person or by submitting a letter of revocation or a later-dated proxy card to the appropriate Fund at 301 E. Colorado Boulevard, Suite 800, Pasadena, California 91101 prior to the date of the Annual Meetings.

Under the bylaws of each Fund, the presence in person or by proxy of the holders of a majority of the outstanding shares of the Fund entitled to vote shall be necessary and sufficient to constitute a quorum for the transaction of business (a "Quorum") at that Fund's Annual Meeting. In the event that a Quorum is not present at the relevant Annual Meeting, or in the event that a Quorum is present but sufficient votes to approve any of the proposals are not received, the Chair of the Annual Meeting may adjourn the meeting without assigning a specific date or from time to time to a date not more than 120 days after the original record date without notice other than announcement at the Annual Meeting. At such adjourned meeting at which a Quorum shall be present, any business may be transacted which might have been transacted at the relevant Annual Meeting as originally notified. A shareholder vote may be taken on a proposal in the Joint Proxy Statement relating to the applicable Annual Meeting prior to any such adjournment if sufficient votes have been received for approval of that proposal. Once a Quorum has been established at the relevant Annual Meeting, shareholders may continue to transact business, notwithstanding the withdrawal of shareholders and the loss of a Quorum.

Each Fund has one class of capital stock outstanding: common stock, par value $0.01 per share (the "Common Stock" or the "Shares"). Each Share is entitled to one vote at the relevant Annual Meeting with respect to matters to be voted on, with pro rata voting rights for any fractional Shares. On the record date, January 20, 2023, the following number of Shares of each Fund were issued and outstanding:

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| | |
|:---|:---|
| **Name of Fund** | **Shares Outstanding** |
|  Flaherty & Crumrine Preferred and Income Fund Incorporated (PFD)  | 12763654 |
|  Flaherty & Crumrine Preferred and Income Opportunity Fund Incorporated (PFO)  | 13077326 |
|  Flaherty & Crumrine Preferred and Income Securities Fund Incorporated (FFC)  | 48094255 |
|  Flaherty & Crumrine Total Return Fund Incorporated (FLC)  | 10456821 |
|  Flaherty & Crumrine Dynamic Preferred and Income Fund Incorporated (DFP)  | 20538137 |

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To the knowledge of each Fund and its Board, the following shareholder(s), or "group" as that term is defined in Section 13(d) of the Securities Exchange Act of 1934, as amended (the "1934 Act"), is the beneficial owner or owner of record of more than 5% of the relevant Fund's outstanding Shares as of January 20, 2023\*:

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| | | | |
|:---|:---|:---|:---|
| **Name and Address of<br>Beneficial/Record Owner** | **Title of Class** | **Amount and Nature of Ownership** | **Percent of Class** |
|  Cede & Co.<sup>\*\*</sup><br> Depository Trust Company<br> 55 Water Street, 25th Floor<br> New York, NY 10041 | Common Stock | PFD – (record)<br> PFO – (record)<br> FFC – (record)<br> FLC – (record)<br> DFP – (record) | 98.54%<br> 98.13%<br> 99.88%<br> 99.90%<br> 99.96% |

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\*As of January 20, 2023, the Directors and officers, as a group, owned less than 1% of the Shares of each Fund.

\*\*A nominee partnership of The Depository Trust Company.

This Joint Proxy Statement is being used to reduce the preparation, printing, handling and postage expenses that would result from the use of a separate proxy statement for each Fund. At each Fund's Annual Meeting, shareholders of the Fund will vote as a single class. Shareholders of each Fund will vote separately for each of PFD, PFO, FFC, FLC and DFP on the proposal(s) on which shareholders of that Fund are entitled to vote at the relevant Annual Meeting. A separate proxy card is enclosed for each Fund in which a shareholder owns Shares. Thus, if the proposal(s) at the relevant Annual Meeting is approved by shareholders of one or more Funds and not approved by shareholders of one or more other Funds, the proposal(s) will be implemented for the Fund or Funds that approved the proposal(s) and will not be implemented for any Fund that did not approve the proposal(s). It is therefore essential that shareholders complete, date and sign each enclosed proxy card. Shareholders of each Fund are entitled to vote on the proposal(s) pertaining to that Fund.

**PROPOSAL 1: ELECTION OF DIRECTORS**

At the Annual Meetings, shareholders are being asked to consider the election of a Director of each Fund. The Board of each Fund is divided into three classes, each class having a term of three years. Each year the term of office of one class expires and the successor or successors elected to such class serve for a term of three years and until their successors are duly elected and qualify.

**Nominees for the Boards of Directors**

Each Nominee named below is currently a Director of each Fund and has consented to serve as a Director for the Fund(s) for which he/she is nominated if elected at the relevant Annual Meeting. If a designated Nominee declines or otherwise becomes unavailable for election, however, the proxy confers discretionary power on the persons named therein to vote in favor of a substitute nominee or

nominees. Each Nominee has been nominated for a term of three years to expire at each Fund's 2026 Annual Meeting of Shareholders and until his/her successor is duly elected and qualifies. Shareholders of each Fund's Common Stock are entitled to elect the Nominee for election to the Board of the relevant Fund.

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| | |
|:---|:---|
| **Fund** | **Nominees for Election** |
|  PFD  | David Gale |
|  PFO  | Morgan Gust |
|  FFC  | David Gale |
|  FLC  | David Gale |
|  DFP  | Karen H. Hogan |

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**Information About Each Director's or Nominee for Election as Director's Experience, Qualifications, Attributes or Skills**

Directors or Nominees for election as Directors of the Funds, together with information as to their positions with the Funds, principal occupations, and other board memberships for the past five years, are shown below.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address,<br>and Age** | **Current<br>Position(s)<br>Held with Funds** | **Term of Office<br>and Length of<br>Time Served\*** | **Principal<br>Occupation(s) <br>During Past <br>Five Years** | **Number of Funds<br>In Fund Complex<br>Overseen<br>by Director\*\*** | **Other<br>Public Company<br>Board Memberships<br>During Past<br>Five Years** |
| **NON-INTERESTED DIRECTORS:** | **NON-INTERESTED DIRECTORS:** | **NON-INTERESTED DIRECTORS:** | **NON-INTERESTED DIRECTORS:** | **NON-INTERESTED DIRECTORS:** | **NON-INTERESTED DIRECTORS:** |
| **Morgan Gust**<br>301 E. Colorado Boulevard<br>Suite 800<br>Pasadena, CA 91101<br>Age: 75 | Lead Independent Director and <br>Nominating and Governance Committee Chair | **Class II Director** <br> FFC – since inception<br> FLC – since inception<br> **Class III Director**<br>PFD – since inception<br> PFO – since inception<br> DFP – since inception | Majority owner and Executive Manager of various entities engaged in commercial farming, agriculture and real estate. | 5 |  |
| **David Gale**<br>301 E. Colorado Boulevard<br>Suite 800<br>Pasadena, CA 91101<br>Age: 73 | Director | **Class I Director**<br>PFD – since 1997<br> PFO – since 1997<br> FFC – since inception<br> FLC – since inception<br> **Class II Director**<br> DFP – since inception | President of Delta Dividend Group, Inc. (investments). | 5 |  |
| **Karen H. Hogan**<br>301 E. Colorado Boulevard<br>Suite 800<br> Pasadena, CA 91101<br>Age: 61 | Director and<br>Audit Committee Chair | **Class I Director** **<sup>†</sup>**<br> DFP – since 2016<br> **Class II Director** **<sup>†</sup>**<br> PFD – since 2016<br> PFO – since 2016<br> **Class III Director** **<sup>†</sup>**<br> FFC – since 2016 <br> FLC – since 2016 | Board Member, IKAR, a non-profit organization; Active Committee Member and Volunteer to several non-profit organizations. | 5 |  |
| **INTERESTED DIRECTOR AND OFFICER:** | **INTERESTED DIRECTOR AND OFFICER:** | **INTERESTED DIRECTOR AND OFFICER:** | **INTERESTED DIRECTOR AND OFFICER:** | **INTERESTED DIRECTOR AND OFFICER:** | **INTERESTED DIRECTOR AND OFFICER:** |
| **R. Eric Chadwick<sup>(1)</sup>**<br> 301 E. Colorado Boulevard<br> Suite 800<br> Pasadena, CA 91101<br> Age: 47 | Director, Chairman of the Board, Chief Executive Officer and President | **Class II Director**<br> PFO – since 2016<br> **Class III Director**<br> PFD – since 2016<br> FFC – since 2016<br> FLC – since 2016<br> DFP – since 2016 | Portfolio Manager and President of Flaherty & Crumrine.  | 5 |  |

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\*The Class II Director of PFD, FFC, FLC and DFP and the Class I Director of PFO will serve until each Fund's 2024 Annual Meeting of Shareholders and until their successors are duly elected and qualify. The Class II Directors of PFO and the Class III Directors of PFD, FFC, FLC and DFP will serve until each Fund's 2025 Annual Meeting of Shareholders and until their successors are duly elected and qualify. The Class I Nominee of PFD, FFC, FLC and DFP and the Class III Nominee of PFO, if elected, will serve until each Fund's 2026 Annual Meeting of Shareholders and until their successors are duly elected and qualify.

\*\*The Flaherty & Crumrine fund complex (the "Fund Complex") consists solely of the Funds.

†Ms. Hogan served as a Class I Director of PFD from 2005 – 2016, a Class II Director of each of FFC and FLC from 2005 – 2016, a Class II Director of DFP since inception – 2016 and a Class III Director of PFO from 2005 – 2016.

(1)"Interested person" of the Funds as defined in the Investment Company Act of 1940, as amended (the "1940 Act"). Mr. Chadwick is considered an "interested person" because of his affiliation with Flaherty & Crumrine.

No Non-Interested Director of the Funds or their immediate family members owned beneficially or of record any securities in Flaherty & Crumrine, or a person directly or indirectly controlling, controlled by, or under common control with the Flaherty & Crumrine.

Mr. Chadwick was appointed as a Director of the Funds in January 2016 and was elected by each Fund's shareholders to serve in that capacity in April 2016. Each Director, other than Mr. Chadwick, has been a Director of the Funds for at least 16 years (or since the Fund's inception, in the case of DFP). Additional information about each Director follows (supplementing the information provided in the table above) that describes some of the specific experiences, qualifications, attributes or skills that each Director possesses which the Boards believe have prepared them to be effective Directors. The Boards believe that Directors should have the ability to critically review, evaluate, question and discuss information provided to them, and interact effectively with Fund management, service providers and counsel. The Boards believe that their members satisfy this standard. Experience relevant to having this ability may be achieved through a Director's educational background; business, professional training or practice (e.g., accounting or law); public service or academic positions; experience from service as a board member (including the Boards of the Funds) or as an executive of investment funds, public companies or significant private or not-for-profit entities or other organizations; and/or other life experiences. The charter for the Boards' Nominating and Governance Committees (each a "Nominating Committee" and collectively, the "Nominating Committees") contains certain other factors considered by the Nominating Committees in identifying and evaluating potential Director nominees. To assist them in evaluating matters under federal and state law, the Independent Directors (defined below) are counseled by their own independent legal counsel, who participates in Board meetings and interacts with Flaherty & Crumrine, and may also benefit from information provided by the Funds' and Flaherty & Crumrine's counsel. Both counsel to the Independent Directors and counsel to the Funds and Flaherty & Crumrine have significant experience advising funds and fund directors. The Boards and their committees have the ability to engage other experts as appropriate. The Boards evaluate their performance on an annual basis.

**<u><u>R. Eric Chadwick</u></u>** – Mr. Chadwick was appointed as a Director and Chair of the Board of each Fund in January 2016. Mr. Chadwick has been the President of each Fund since April 2015 and, previously, the Chief Financial Officer from 2004 (or in the case of DFP, from its inception) until April 2015. Mr. Chadwick is also the President of Flaherty & Crumrine and has served as a portfolio manager of PFD and PFO since 1999 and as portfolio manager of each of FFC, FLC and DFP since each Fund's inception.

**<u><u>David Gale</u></u>** – In addition to his tenure as a Director of the Funds, Mr. Gale has been President and Chief Executive Officer of Delta Dividend Group, Inc., a San Francisco-based investment management firm, since 1992. Prior to joining Delta Dividend Group, Inc., Mr. Gale was a Principal with Morgan Stanley from 1983 to 1990, and a Managing Director of Lehman Brothers Holdings Inc. from 1990 to 1992. Mr. Gale previously served as a director of Emmis Communications.

**<u><u>Morgan Gust</u></u>** – In addition to his tenure as a Director of the Funds, Mr. Gust is a majority owner and executive manager of various entities engaged in commercial farming, agriculture and real estate. From 1990 to 2007, Mr. Gust served in various capacities, including President, Executive Vice President, General Counsel and Corporate Secretary of Giant Industries, Inc., a New York Stock Exchange listed public company engaging in petroleum refining and marketing. Mr. Gust previously served as lead director of CoBiz Financial, Inc., a publicly traded bank holding company. He is also a member of the Arizona State Bar. Mr. Gust was designated the Lead Independent Director of each Fund in October 2016. He also serves as the Chair of the Nominating Committee of each Fund's Board.

**<u><u>Karen H. Hogan</u></u>** – In addition to her tenure as a Director of the Funds, Ms. Hogan serves on the Board of IKAR, a non-profit organization, and as a committee member and active volunteer of several charitable and non-profit organizations. From 1985 to 1997, Ms. Hogan served as Senior Vice President of Preferred Stock Origination, and previously Vice President of New Product Development, at Lehman Brothers Holdings Inc. Ms. Hogan also served as a director, member and chair of the audit committee of New World Coffee, Inc. Ms. Hogan currently serves as Chair of the Audit Committee of each Fund's Board.

**Board Composition and Leadership Structure**

The 1940 Act requires that at least 40% of the Funds' Directors not be "interested persons" (as defined in the 1940 Act) of the Funds, and therefore not affiliated with Flaherty & Crumrine (the "Independent Directors"). To rely on certain exemptive rules under the 1940 Act, a majority of the Funds' Directors must be Independent Directors and, for certain important matters, such as the approval of investment advisory agreements or transactions with affiliates, the 1940 Act or the rules thereunder require the approval of a majority of the Independent Directors. Currently, three of the Funds' four Directors are Independent Directors. The Chair of the Boards is an interested person of each Fund. The three Independent Directors interact directly with the Chair and other senior management of Flaherty & Crumrine at scheduled meetings and between meetings as appropriate. Independent Directors have been designated to chair the Audit Committees and the Nominating Committees. The Board of each Fund has appointed Mr. Morgan Gust as the Lead

Independent Director. The Boards have determined that their leadership structures and composition, in which the Chair of the Boards is an "interested person" of the Funds, the Funds have a Lead Independent Director and 75% of the Directors are Independent Directors, are appropriate in light of the services that Flaherty & Crumrine provides to the Funds.

**Boards' Oversight Role in Management**

The Boards' role in management of the Funds is oversight. As is the case with virtually all investment companies (as distinguished from operating companies), service providers to the Funds, primarily Flaherty & Crumrine, have responsibility for the day-to-day management of the Funds, which includes responsibility for risk management (including management of investment performance and investment risk, valuation risk, issuer and counterparty credit risk, compliance risk and operational risk). As part of their oversight, the Boards, acting at their scheduled meetings, or the Chair, acting between Board meetings, regularly interacts with, and receives reports from, senior personnel of service providers, including the Funds' and Flaherty & Crumrine's Chief Compliance Officer and portfolio management personnel. The Boards' Audit Committees (which consist of all the Independent Directors) meet during their scheduled meetings, and between meetings the Chair of the Audit Committees maintains contact, with the Funds' independent registered public accounting firm and the Funds' Chief Financial Officer. The Boards also receive periodic presentations from senior personnel of Flaherty & Crumrine regarding risk management generally, as well as periodic presentations regarding specific operational, compliance or investment areas, such as business continuity, personal trading, valuation and credit. The Boards have adopted policies and procedures designed to address certain risks to the Funds. In addition, Flaherty & Crumrine and other service providers to the Funds have adopted a variety of policies, procedures and controls designed to address particular risks to the Funds. Different processes, procedures and controls are employed with respect to different types of risks. However, it is not possible to eliminate all of the risks applicable to the Funds. The Boards also receive reports from counsel to the Funds and Flaherty & Crumrine and the Independent Directors' own independent legal counsel regarding regulatory, compliance and governance matters. The Boards' oversight role does not make the Boards guarantors of the Funds' investments or activities.

**Beneficial Ownership of Shares in the Funds and Fund Complex for each Director and Nominee for Election as Director**

Set forth in the table below is the dollar range of equity securities in each Fund and the aggregate dollar range of equity securities in the Flaherty & Crumrine Fund Complex beneficially owned by each Director and Nominee for election as Director.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name of Director or Nominee** | **Dollar Range of Equity<br>Securities Held in a Fund\*<sup>(1)</sup>** | **Dollar Range of Equity<br>Securities Held in a Fund\*<sup>(1)</sup>** | **Dollar Range of Equity<br>Securities Held in a Fund\*<sup>(1)</sup>** | **Aggregate Dollar Range of Equity<br>Securities in All Registered Investment<br>Companies Overseen by Director in<br>Family of Investment Companies\*<sup>(2)</sup>** |
| **NON-INTERESTED DIRECTORS/NOMINEES:** | **NON-INTERESTED DIRECTORS/NOMINEES:** | **NON-INTERESTED DIRECTORS/NOMINEES:** | **NON-INTERESTED DIRECTORS/NOMINEES:** | **NON-INTERESTED DIRECTORS/NOMINEES:** |
|  | PFD | PFO<br> FFC<br> FLC | DFP | TOTAL |
|  Morgan Gust  | E | D | C | E |
|  David Gale  | D | D | C | E |
|  Karen H. Hogan  | C | C | C | D |
| **INTERESTED DIRECTOR:** | **INTERESTED DIRECTOR:** | **INTERESTED DIRECTOR:** | **INTERESTED DIRECTOR:** | **INTERESTED DIRECTOR:** |
| R. Eric Chadwick  | C | E<br> C | E | E |

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\*Key to Dollar Ranges

A.None

B.$1 - $10,000

C.$10,001 - $50,000

D.$50,001 - $100,000

E.over $100,000

All Shares were valued as of December 31, 2022.

(1)This information has been furnished by each Director/Nominee as of December 31, 2022. "Beneficial ownership" is determined in accordance with Rule 16a-1(a)(2) under the 1934 Act.

(2)As of December 31, 2022, the Directors, Nominees and executive officers of each Fund, as a group, owned less than 1% of the Shares of each Fund.

**Officers of the Funds**

The following table provides information concerning each of the Fund's officers.

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| | | | |
|:---|:---|:---|:---|
| **Name, Address,<br>and Age** | **Current Position(s)<br>Held with Funds** | **Term of Office and<br>Length of Time<br>Served\*** | **Principal Occupation<br>During Past Five Years** |
| **Chad C. Conwell**<br> 301 E. Colorado<br> Boulevard<br> Suite 800<br> Pasadena, CA 91101<br> Age: 50 | Chief Compliance Officer,<br> Vice President and Secretary | PFD – since 2005<br> PFO – since 2005<br> FFC – since 2005<br> FLC – since 2005<br> DFP – since inception | Executive Vice President, Chief Compliance Officer and Chief Legal Officer of Flaherty & Crumrine. |
| **Bradford S. Stone**<br> 47 Maple Street<br> Suite 403<br> Summit, NJ 07901<br> Age: 63 | Chief Financial Officer,<br> Vice President and Treasurer | PFD – since 2003<br> PFO – since 2003<br> FFC – since 2003<br> FLC – since inception<br> DFP – since inception | Portfolio Manager, Executive Vice President and Chief Financial Officer of Flaherty & Crumrine. |
| **Roger Ko**<br> 301 E. Colorado<br> Boulevard<br> Suite 800<br> Pasadena, CA 91101<br> Age: 48 | Assistant Treasurer | PFD – since 2014<br> PFO – since 2014<br> FFC – since 2014<br> FLC – since 2014<br> DFP – since 2014 | Trader of Flaherty & Crumrine. |
| **Laurie C. Lodolo**<br> 301 E. Colorado<br> Boulevard<br> Suite 800<br> Pasadena, CA 91101<br> Age: 59 | Assistant Compliance Officer,<br> Assistant Treasurer and<br> Assistant Secretary | PFD – since 2004<br> PFO – since 2004<br> FFC – since 2004<br> FLC – since 2004<br> DFP – since inception | Assistant Compliance Officer and Secretary of Flaherty & Crumrine. |

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\*Each officer serves until his or her successor is elected and qualifies or until his or her earlier resignation or removal.

**Audit Committee**

The role of each Fund's Audit Committee is to assist the Board of Directors in its oversight of: (i) the integrity of the Fund's financial statements and the independent audit thereof; (ii) the Fund's accounting and financial reporting policies and practices, and its internal control over financial reporting; (iii) the Fund's compliance with legal and regulatory requirements; and (iv) the independent auditor's qualifications, independence and performance. Each Fund's Audit Committee is also required to prepare an audit committee report pursuant to applicable laws and regulations for inclusion in the Fund's annual proxy statement. Each Audit Committee operates pursuant to a charter (the "Audit Committee Charter" or "Charter") that was most recently reviewed and approved by the Board of Directors of each Fund on January 19, 2023, and which is available at www.preferredincome.com. As set forth in the Charter, Fund management is responsible for the (i) preparation, presentation and integrity of each Fund's financial statements, (ii) maintenance of appropriate accounting and financial reporting principles and policies and (iii) maintenance of internal controls and procedures designed to assure compliance with accounting standards and applicable laws and regulations. The Funds' independent registered public accounting firm, KPMG LLP (the "independent accountants" or "KPMG"), is responsible for planning and carrying out proper audits and reviews of each Fund's financial statements and expressing an opinion as to their conformity with accounting principles generally accepted in the United States of America.

**Audit Committee Report**

In performing its oversight function, at a meeting held on January 19, 2023, the Audit Committee of each Fund reviewed and discussed with Fund management and the independent accountants, the audited financial statements of the Fund as of and for the fiscal year ended November 30, 2022, and discussed the audit of such financial statements with the independent accountants.

In addition, the Audit Committee of each Fund discussed with the independent accountants the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board ("PCAOB") and the SEC. Each Audit Committee also received from the independent accountants the written disclosures and statements required by PCAOB Rule 3526, *Communication with Audit Committees Concerning Independence*, as currently in effect and discussed the impact that any such relationships might have on the objectivity and independence of the independent accountants.

As set forth above, and as more fully set forth in each Fund's Audit Committee Charter, each Audit Committee has significant duties and powers in its oversight role with respect to the Fund's financial reporting procedures, internal control systems, and the independent audit process.

The members of each Audit Committee are not, and do not represent themselves to be, professionally engaged in the practice of auditing or accounting and are not employed by the Fund for accounting, financial management or internal control. Moreover, each Audit Committee relies on, and makes no independent verification of, the facts presented to it or representations made by Fund management or the independent accountants. Accordingly, each Audit Committee's oversight does not provide an independent basis to determine that Fund management has maintained appropriate accounting and financial reporting principles and policies, or internal controls and procedures, designed to assure compliance with accounting standards and applicable laws and regulations. Furthermore, each Audit Committee's considerations and discussions referred to above do not provide assurance that the audit of each Fund's financial statements has been carried out in accordance with generally accepted accounting standards or that the financial statements are presented in accordance with generally accepted accounting principles.

Based on its consideration of the audited financial statements and the discussions referred to above with Fund management and the independent accountants, and subject to the limitations on the responsibilities and role of the Audit Committee set forth in the Charter and those discussed above, the Audit Committee of each Fund recommended to that Fund's Board that the audited financial statements be included in the Fund's Annual Report for the fiscal year ended November 30, 2022.

**This report was submitted by the Audit Committee of each Fund's Board of Directors**

David Gale<br>Morgan Gust<br>Karen H. Hogan (Chair)<br>January 19, 2023

Each Audit Committee was established in accordance with Section 3(a)(58)(A) of the 1934 Act. Each Audit Committee met four times in connection with its Board of Directors' regularly scheduled meetings during the fiscal year ended November 30, 2022. Each Audit Committee is composed entirely of each Fund's Independent Directors who are also "independent" (as such term is defined by the New York Stock Exchange ("NYSE") under the listing standards applicable to closed-end funds, as may be modified or supplemented (the "NYSE Listing Standards")), namely Ms. Hogan and Messrs. Gale and Gust.

**Nominating Committee**

Each Board of Directors has a Nominating Committee composed entirely of each Fund's Independent Directors who are also "independent" (as such term is defined by the NYSE Listing Standards), namely Ms. Hogan and Messrs. Gale and Gust. The Nominating Committee of each Fund met two times during the fiscal year ended November 30, 2022.

The Nominating Committee of each Fund is responsible for identifying individuals believed to be qualified to become Board members; for recommending to the Board such nominees to stand for election as Directors at each Fund's annual meeting of shareholders and to fill any vacancies on the Board; and for overseeing the Board's governance practices. Each Fund's Nominating Committee has a charter which is available on its website, www.preferredincome.com.

Each Fund's Nominating Committee believes that it is in the best interest of each Fund and its shareholders to obtain highly qualified candidates to serve as members of the Board. The Nominating Committees have not established a formal process for identifying candidates where a vacancy exists on the Boards. In nominating candidates, each Nominating Committee shall take into consideration such factors as it deems appropriate, including educational background; business, professional training or practice (e.g., accounting or law); public service or academic positions; experience from service as a board member (including the Boards of the Funds) or as an executive of investment funds, public companies or significant private or not-for-profit entities or other organizations; and other life experiences. Each Fund's Nominating Committee may consider whether a potential nominee's professional experience, education, skills and other individual qualities and attributes, including gender, race or national origin, would provide beneficial diversity of skills, experience or perspective to the Board's membership and collective attributes. Each Fund's Nominating Committee will consider Director candidates recommended by shareholders and submitted in accordance with applicable law and procedures as described in this Joint Proxy Statement. (See "Submission of Shareholder Proposals – 2024 Annual Meetings" below).

**Other Board-Related Matters**

Shareholders who wish to send communications to the Board should send them to the address of their Fund(s), 301 E. Colorado Boulevard, Suite 800, Pasadena, California 91101, and to the attention of the Board. All such communications will be directed to the Board's attention.

The Funds do not have a formal policy regarding Board member attendance at the Annual Meetings. However, all the Directors of each Fund attended the April 20, 2022 Annual Meetings of Shareholders.

**Board Compensation**

Each Director of each Fund who is not a director, officer or employee of Flaherty & Crumrine or any of its affiliates receives from each Fund a fee of $9,000 per annum plus $750 for each in person Board or Audit Committee meeting attended, $500 for each in person Nominating Committee meeting attended, and $250 for each telephone meeting attended. In addition, the Audit Committee Chair receives from each Fund an annual fee of $3,000. Each Director of each Fund is reimbursed for travel and out-of-pocket expenses associated with attending Board and committee meetings. During the fiscal year ended November 30, 2022, the Board of Directors for each of PFD, PFO, FFC, FLC and DFP held seven meetings (four of which were telephone meetings). Each Director of each Fund attended 100% of the Board meetings and 100% of any committee meetings of which he or she is a member. The aggregate remuneration paid to the Directors of each Fund for the fiscal year ended November 30, 2022 is set forth below:

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| | | | |
|:---|:---|:---|:---|
|  | **Annual Directors Fees** | **Board Meeting and Committee Meeting Fees\*** | **Travel and Out-of-Pocket Expenses\*\*** |
|  PFD  | $27000 | $27000 | $1451.02 |
|  PFO  | $27000 | $27000 | $1451.02 |
|  FFC  | $27000 | $27000 | $1451.02 |
|  FLC  | $27000 | $27000 | $1451.02 |
|  DFP  | $27000 | $27000 | $1451.02 |

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\*Due to the ongoing coronavirus pandemic, a quarterly meeting of the Board and its committees held telephonically or virtually due to COVID-19 safety protocols was treated as an in person meeting.

\*\*Includes reimbursement for travel and out-of-pocket expenses for both "interested" and Independent Directors.

The table below sets forth additional information regarding the compensation of each Fund's Directors for the fiscal year ended November 30, 2022. No executive officer or person affiliated with a Fund received compensation from a Fund during the fiscal year ended November 30, 2022 in excess of $60,000. Directors and executive officers of the Funds do not receive pension or retirement benefits from the Funds.

**COMPENSATION TABLE**

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| | |
|:---|:---|
| **Name of Person and Position** | **Aggregate<br>Compensation from<br>each Fund** |
| **R. Eric Chadwick**<br> Director, Chair of the Board, Chief Executive Officer and President  | $0<br>$0 <sup>(5)</sup> |
| **Morgan Gust**<br> Lead Independent Director, Nominating Committee Chair  | $16,750 – PFD<br> $16,750 – PFO<br> $16,750 – FFC<br> $16,750 – FLC<br> $16,750 – DFP<br>$83750 <sup>(5)</sup> |
| **David Gale**<br> Director  | $16,750 – PFD<br> $16,750 – PFO<br> $16,750 – FFC<br> $16,750 – FLC<br> $16,750 – DFP<br>$83750 <sup>(5)</sup> |
| **Karen H. Hogan**<br> Director, Audit Committee Chair  | $20,500 – PFD<br> $20,500 – PFO<br> $20,500 – FFC<br> $20,500 – FLC<br> $20,500 – DFP<br>$102500 <sup>(5)</sup> |

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\*Represents the total compensation paid for the fiscal year ended November 30, 2022 to such persons by the Funds, which are considered part of the same "fund complex" because they have a common adviser. The parenthetical number represents the total number of investment company directorships held by the Director or Nominee in the Fund Complex as of November 30, 2022.

**Required Vote**

The election of Mr. Gale as Director of PFD, FFC and FLC, the election of Mr. Gust as Director of PFO and the election of Ms. Hogan as Director of DFP will require the affirmative vote of a plurality of the votes cast by holders of the Shares of each such Fund at the relevant Annual Meeting in person or by proxy. A "plurality" vote means the candidate who receives the largest number of votes cast (even if they receive less than a majority) will be elected as a Director. Since the candidate for election as a Director in Proposal 1 for each Fund is running unopposed, the candidate only needs one vote to be elected if there is a Quorum present at the relevant Annual Meeting. Because abstentions and broker non-votes are not treated as Shares voted, any abstentions and broker non-votes would have no impact on the election.

**Independent Registered Public Accounting Firm**

KPMG, Two Financial Center, 60 South Street, Boston, Massachusetts 02111, has been selected to serve as each Fund's independent accountants for each Fund's fiscal year ending November 30, 2023. KPMG acted as the independent accountants for each Fund for the fiscal year ended November 30, 2022. The Funds know of no direct financial or material indirect financial interest of KPMG in the Funds. A representative of KPMG will not be present at the Annual Meetings, but will be available by telephone to respond to appropriate questions and will have an opportunity to make a statement.

Set forth in the table below are audit fees and non-audit related fees billed to each Fund by KPMG for professional services for the fiscal years ended November 30, 2021 and November 30, 2022, respectively.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fund** | **Fiscal Year<br>Ended<br>November 30** | **Audit Fees** | **Audit-Related Fees** | **Tax Fees\*** | **All Other Fees** |
|  PFD  | 2021 | &nbsp;&nbsp; $53550<br>| $0 | $10030<br>| &nbsp;&nbsp;&nbsp;&nbsp; $26000<br>|
|  | 2022 | &nbsp;&nbsp; $55500<br>| $0 | $10350<br>| &nbsp;&nbsp;&nbsp;&nbsp; $0<br>|
|  PFO  | 2021 | &nbsp;&nbsp; $53550<br>| $0 | $10030<br>| &nbsp;&nbsp;&nbsp;&nbsp; $26000<br>|
|  | 2022 | &nbsp;&nbsp; $55500<br>| $0 | $10350<br>| &nbsp;&nbsp;&nbsp;&nbsp; $0<br>|
|  FFC  | 2021 | &nbsp;&nbsp; $53550<br>| $0 | $10030<br>| &nbsp;&nbsp;&nbsp;&nbsp; $26000<br>|
|  | 2022 | &nbsp;&nbsp; $55500<br>| $0 | $10350<br>| &nbsp;&nbsp;&nbsp;&nbsp; $0<br>|
|  FLC  | 2021 | &nbsp;&nbsp; $53550<br>| $0 | $10030<br>| &nbsp;&nbsp;&nbsp;&nbsp; $26000<br>|
|  | 2022 | &nbsp;&nbsp; $55500<br>| $0 | $10350<br>| &nbsp;&nbsp;&nbsp;&nbsp; $0<br>|
|  DFP  | 2021 | &nbsp;&nbsp; $53550<br>| $0 | $10030<br>| &nbsp;&nbsp;&nbsp;&nbsp; $26000<br>|
|  | 2022 | &nbsp;&nbsp; $55500<br>| $0 | $10350<br>| &nbsp;&nbsp;&nbsp;&nbsp; $0<br>|

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\*"Tax Fees" are those fees billed to each Fund by KPMG in connection with tax consulting services, including primarily the review of each Fund's income tax returns.

Each Fund's Audit Committee Charter requires that the Audit Committee pre-approve all audit and non-audit services to be provided by the independent accountants to the Fund, and all non-audit services to be provided by the independent accountants to the Fund's investment adviser and any entity controlling, controlled by or under common control with the Fund's investment adviser ("affiliates") that provide on-going services to each Fund, if the engagement relates directly to the operations and financial reporting of each Fund, or to establish detailed pre-approval policies and procedures for such services in accordance with applicable laws. All of the audit and non-audit services described above for which KPMG billed each Fund fees for the fiscal years ended November 30, 2021 and November 30, 2022, respectively, were pre-approved by the Audit Committee, as applicable.

For each Fund's fiscal years ended November 30, 2021 and November 30, 2022, respectively, KPMG did not provide any non-audit services (or bill any fees for such services) to the Funds' investment adviser or any affiliates.

**The Board unanimously recommends that shareholders vote FOR the election of the nominees.**

**OTHER MATTERS TO COME BEFORE THE ANNUAL MEETINGS**

Each Fund does not intend to present any other business at the relevant Annual Meeting, nor is any Fund aware that any shareholder intends to do so. If, however, any other matters are properly brought before the Annual Meetings, the persons named in the accompanying form of proxy will vote thereon in accordance with their judgment.

**ADDITIONAL INFORMATION**

**Investment Adviser, Administrator and Servicing Agent**

Flaherty & Crumrine serves as the investment adviser to each Fund, and its business address is 301 E. Colorado Boulevard, Suite 800, Pasadena, California 91101. BNY Mellon acts as the administrator to each Fund and is located at 4400 Computer Drive, Westborough, Massachusetts 01581. Destra Capital Advisors LLC acts as the servicing agent to FFC, FLC and DFP and is located at 444 West Lake Street, Suite 1700, Chicago, Illinois 60606.

**Submission of Shareholder Proposals - 2024 Annual Meetings**

All proposals by shareholders of each Fund that are intended to be presented at each Fund's next Annual Meeting of Shareholders to be held in 2024 must be received by the relevant Fund for consideration for inclusion in the relevant Fund's proxy statement relating to the meeting no later than November 3, 2023, and must satisfy the requirements of federal securities laws.

Each Fund's bylaws require shareholders wishing to nominate Directors or make proposals to be voted on at the Fund's annual meeting to provide timely advance notice of the proposal in writing. To be considered timely, any such advance notice must be in writing delivered to or mailed and received at the principal executive offices of the Fund at the address set forth on the first page of this Joint Proxy Statement not earlier than the 150th day nor later than 2:00 p.m., PDT, on the 120th day prior to the first anniversary of the date of the proxy statement for the preceding year's annual meeting; provided, however, that in the event that the date of the annual meeting is advanced or delayed by more than 30 days from the first anniversary of the date of the preceding year's annual meeting, notice by the shareholder to be timely must be so delivered not earlier than the 150th day prior to the date of such annual meeting and not later than 2:00 p.m., PDT, on the later of the 120th day prior to the date of such annual meeting, as originally convened, or the tenth day following the day on which public announcement of the date of such meeting is first made.

Any such notice by a shareholder shall set forth the information required by the Fund's bylaws with respect to each matter the shareholder proposes to bring before the annual meeting.

**"Householding"**

Please note that only one annual or semi-annual report or Joint Proxy Statement may be delivered to two or more shareholders of a Fund who share an address, unless the Fund has received instructions to the contrary. To request a separate copy of an annual report or semi-annual report or this Joint Proxy Statement, or for instructions regarding how to request a separate copy of these documents or regarding how to request a single copy if multiple copies of these documents are received, shareholders should contact Computershare, P.O. Box 505000, Louisville, KY, 40233-5000, United States, or by calling 1-866-351-7446 (U.S. toll-free) or 1-201-680-6578 (International).

**Voting Results**

Each Fund will advise its shareholders of the voting results of the matters voted upon at its Annual Meeting in its next Semi-Annual Report to shareholders.

**Broker Non-Votes and Abstentions**

A proxy which is properly executed and returned accompanied by instructions to withhold authority to vote represents a broker "non-vote" (i.e., Shares held by brokers or nominees as to which (i) instructions have not been received from the beneficial owners or the persons entitled to vote and (ii) the broker or nominee does not have discretionary voting power on a particular matter). Proxies that withhold authority or broker non-votes (collectively, "abstentions") will be counted as Shares that are present and entitled to vote at the relevant Annual Meeting for purposes of determining the presence of a Quorum.

With respect to Proposal 1 for the Annual Meetings, abstentions do not constitute a vote "for" the Nominees for Directors.

**NOTICE TO BANKS, BROKER/DEALERS AND VOTING TRUSTEES AND THEIR NOMINEES**

Please advise the Funds whether other persons are the beneficial owners of Shares for which proxies are being solicited from you, and, if so, the number of copies of the Joint Proxy Statement and other soliciting material you wish to receive to supply copies to the beneficial owners of Shares.

**IT IS IMPORTANT THAT PROXIES BE RETURNED PROMPTLY. SHAREHOLDERS WHO DO NOT EXPECT TO ATTEND THE RELEVANT ANNUAL MEETING(S) ARE THEREFORE URGED TO COMPLETE, SIGN, DATE AND RETURN ALL PROXY CARDS OR VOTING INSTRUCTION FORM AS SOON AS POSSIBLE IN THE ENCLOSED POSTAGE-PAID ENVELOPE.**

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|:---|:---|:---|
| **FLAHERTY & CRUMRINE PREFERRED AND <br> INCOME FUND INCORPORATED <br> PO Box 43131 <br> Providence, RI 02940-3131** | **EVERY VOTE IS IMPORTANT**<br>**EASY VOTING OPTIONS:**  | **EVERY VOTE IS IMPORTANT**<br>**EASY VOTING OPTIONS:**  |
|  | ![](pfdproxycard001.jpg) | **VOTE BY MAIL**<br> **Vote, sign and date this Proxy** <br> **Card and return in the** <br> **postage-paid envelope** |
|  | ![](pfdproxycard002.jpg) | **VOTE IN PERSON** <br> **Attend Shareholder Meeting** <br> **301 East Colorado Blvd., Suite 800** <br> **Pasadena, California** <br> **on April 19, 2023** |

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**Please fold along the perforation, detach and return the bottom portion in the enclosed envelope.**

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|:---|:---|
| **PROXY** | **FLAHERTY & CRUMRINE PREFERRED AND INCOME FUND INCORPORATED** |

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**ANNUAL MEETING OF SHAREHOLDERS** 

**TO BE HELD ON APRIL 19, 2023**

**THIS PROXY IS BEING SOLICITED BY THE BOARD OF DIRECTORS.** The undersigned holder of shares of Common Stock of Flaherty & Crumrine Preferred and Income Fund Incorporated, a Maryland corporation (the "Fund"), hereby appoints R. Eric Chadwick, Bradford S. Stone and Chad C. Conwell, proxies for the undersigned, each with full powers of substitution and revocation, to represent the undersigned and to vote on behalf of the undersigned all shares of Common Stock which the undersigned is entitled to vote at the Annual Meeting of Shareholders of the Fund to be held at the offices of Flaherty & Crumrine Incorporated, 301 East Colorado Boulevard, Suite 800, Pasadena, California 91101 at 8:00 a.m. PDT, on April 19, 2023, and any adjournments or postponements thereof (the "Meeting").

The undersigned hereby acknowledges receipt of the Notice of Annual Meetings of Shareholders and Joint Proxy Statement and hereby instructs said proxies to vote said shares as indicated hereon. In their discretion, the proxies are authorized to vote upon such other business as may properly come before the Meeting. A majority of the proxies present and acting at the Meeting in person or by substitute (or, if only one shall be so present, then that one) shall have and may exercise all of the power and authority of said proxies hereunder. The undersigned hereby revokes any proxy previously given.

**CHANGE OF ADDRESS**

**PFD_33136_020823**

**PLEASE SIGN, DATE AND RETURN THE PROXY PROMPTLY USING THE ENCLOSED ENVELOPE.**

xxxxxxxxxxxxxx code

**EVERY SHAREHOLDER'S VOTE IS IMPORTANT**

**Important Notice Regarding the Availability of Proxy Materials for the <br> Annual Meeting of Shareholders to Be Held on April 19, 2023.**

**The Notice of Annual Meetings of Shareholders, Joint Proxy Statement and Proxy Card are available at:**

**<u>www.preferredincome.com</u>**

**Please fold along the perforation, detach and return the bottom portion in the enclosed envelope.**

**TO VOTE MARK BLOCKS BELOW IN BLUE OR BLACK INK AS SHOWN IN THIS EXAMPLE: ☒** 

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|:---|:---|:---|
| **A** | **Proposal** | **THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" THE NOMINEE LISTED.** |

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**1.** **Election of Director:** 

FOR WITHHOLD

01 David Gale ☐ ☐

**2.** To vote and otherwise represent the undersigned on any other matter that may properly come before the Meeting or any adjournment
or postponement thereof in the discretion of the Proxy holder.

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|:---|:---|
| **B** | **Authorized Signatures — This section must be completed for your vote to be counted.— Sign and Date Below** |

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|:---|:---|
| **Note**: | Please sign exactly as your name(s) appear(s) on this Proxy Card, and date it. When shares are held jointly, each holder should sign. When signing as attorney, executor, guardian, administrator, trustee, officer of corporation or other entity or in another representative capacity, please give the full title under the signature. |

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| | | |
|:---|:---|:---|
| **Date (mm/dd/yyyy) ─ Please print date below** | **Signature 1 ─ Please keep signature within the box** | **Signature 2 ─ Please keep signature within the box** |
| / / | | |

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xxxxxxxxxxxxxx PFD 33136 xxxxxxxx