Flaherty & Crumrine Dynamic Preferred and Income Fund (NYSE:DFP) is an actively managed closed-end investment company focused on generating attractive current income while seeking to preserve capital. The fund primarily invests in preferred securities issued by U.S. and non-U.S. financial institutions, utilities, energy companies, and other corporate issuers. Through a dynamic allocation strategy, the fund’s management adjusts exposure across high-yield preferreds, investment-grade issues, and selective fixed-income instruments to capitalize on changing market conditions and interest-rate environments.
Established in 2014 and advised by Flaherty & Crumrine Incorporated, a firm founded in 1981 by John Flaherty and William Crumrine, DFP leverages decades of specialized experience in the preferred securities market. The portfolio team conducts rigorous credit analysis and market research to identify securities that offer compelling risk-adjusted yields. In addition to preferred stocks, the fund may allocate to common equities with attractive dividend characteristics, senior loans, and selective corporate debt when market dynamics warrant broader income exposure.
DFP’s investment approach is grounded in active risk management, including limiting duration and credit risk through security selection and diversification. The fund may also employ modest leverage to enhance income potential, subject to prevailing market opportunities and regulatory constraints. By focusing on a balanced mix of higher-yield and quality issues, the fund seeks to deliver stable distributions, making it suitable for income-oriented investors seeking diversification beyond traditional bond allocations.
Headquartered in Seattle, Flaherty & Crumrine Incorporated serves as both investment advisor and research hub for DFP, supporting a team of dedicated analysts and portfolio managers. The fund’s board of trustees, comprised predominantly of independent directors, oversees governance and aligns the fund’s operations with shareholder interests. While DFP maintains a global investment mandate, the majority of its assets are typically allocated to issuers in North America and Western Europe, where market depth and liquidity support the advisor’s disciplined investment process.
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