Flaherty and Crumrine Preferred Securities Fund (FFC)
"Hello" to Real Life Traders worldwide! As this is written (Oct 8th) we have just finished a really great week because #1 we had many new traders join us #2 our total net gain was 2.2 Rs into active trader accounts #3 Latoya joined us as a presenter #4 Angie, Jerremy, and Brad did their outstanding-as-usual work, and we are eagerly anticipating the trading floors for next week. Most of you know that I sometimes describe an income$$$now situation while Brad takes a short break during the morning RLT show. The following is a written form of the verbal comments sometimes presented.
As the name indicates (symbol FFC) this is a fund which invests in preferred securities with fund guidelines as follows: 1) about 80% of securities are of investment grade quality 2) other investments may be in securities rated below investment grade, debt instruments, and common stocks. The objective is to seek high current income with preservation of capital. For details on this and other info mentioned please refer to the FFC website.
The Flaherty and Crumrine investment family website mentions in part...founded in 1983...investment advisor specializing in the management of preferred securities...conducts various investment/financial activities... The FFC fund, which was started in January, 2003, now has net assets of about $856 million is managed by Mr. R. Eric Chadwick, cfa, who has been employed at Flaherty and Crumrine since 1999. Please note that the FFC fund, in addition to its net assets, uses significant leverage (borrowed funds) to conduct operations.
Other information bits are presented as follows:
1) the distribution rate is about 7.85% and paid to investors monthly at $.136 per share
2) closing market price $20.65
3) 52 week Hi/Lo price range 22.22/18.71
4) NAV (net asset value) about 19.50
5) net assets plus about 33% leveraged money
6) expense ratio about .88%
7) annual portfolio turnover about 29%
8) DRIP (dividend re-investment plan) available
9) the current distribution rate (.136 cents) has been in effect since August of 2011
10) closed-end fund with about 137 holdings
Writer comments are as follows:
1) it appears that the fund manager has been with the employer since 1999
2) each reader is encouraged to consider the effect on this fund if/when interest rates
3) net asset value is about 6% below market price
4) this fund provides an income stream by paying a $distribution each month
Information presented here is believed to be accurate, but is not, and cannot be, guaranteed by the writer or RLT because the information is taken from readily available sources such as FFC website, Yahoo.finance, and/or stockbroker website. Please know that the writer does not own any interest in FFC. This presentation is intended for reader interest/entertainment only and does not encourage or discourage investment in FFC.
EACH READER MUST CONDUCT THEIR OWN RESEARCH BEFORE MAKING ANY INVESTMENT.
Happy$$$Trading to everyone Ed Reed