Business Context and Reporting Period
This Form 8-K was filed by Flaherty & Crumrine Preferred Securities Income Fund Incorporated on May 2, 2019. The report details a corporate action approved by the Board of Directors on April 23, 2019, involving a change to the Fund's name and investment policies.
Key Financial Metrics
The filing text does not provide specific financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity figures. This report focuses exclusively on corporate governance and policy changes.
Material Changes
- Name Change: The Fund's name will change from "Flaherty & Crumrine Preferred Securities Income Fund Incorporated" to "Flaherty & Crumrine Preferred and Income Securities Fund Incorporated."
- Investment Policy Revision: The non-fundamental policy requiring the Fund to invest at least 80% of its assets in preferred securities is being revised. The new policy requires investing at least 80% of "Managed Assets" in a portfolio of preferred and other income-producing securities.
- Definition of Managed Assets: The filing defines "Managed Assets" as the Fund's net assets plus the principal amount of loans from financial institutions, debt securities issued by the Fund, the liquidation preference of preferred stock issued by the Fund, and proceeds from reverse repurchase agreements.
- Policy Flexibility: The new investment policy remains non-fundamental, allowing the Board to change it without shareholder approval.
Guidance, Outlook, and Risks
The filing does not contain financial guidance, management commentary on market outlook, or specific risk factors beyond the operational changes described. The changes are scheduled to take effect on or about July 5, 2019.
Key Facts for Investor Verification
- Verify the effective date of the name and policy changes (on or about July 5, 2019).
- Confirm the expanded scope of the 80% investment policy to include "other income-producing securities" beyond just preferred securities.
- Note that the Board retains the authority to modify the new investment policy without a shareholder vote.