Preferred securities: Q4 outlook for income investors

Endnotes

*The Fund will terminate as of the close of business on 1 February, 2034, provided that the Fund’s Board of Trustees may, in its sole discretion and without any action by the shareholders of the Fund, by vote of a majority of the then Board of Trustees with notice to the shareholders, extend the Fund’s term for up to two one year periods. In addition, the Board may determine to cause the Fund to conduct an Eligible Tender Offer. If the Eligible Tender Offer is completed, the Board of Trustees may, in its sole discretion and without any action by the shareholders of the Fund, by vote of a majority of the then Board of Trustees, provide that the Fund may continue without limitation of time subject to certain terms and conditions. If an Eligible Tender Offer is not conducted, the Fund will cease investment operations, retire or redeem its leverage facilities, liquidate its investment portfolio (to the extent possible) and distribute all of its liquidated net assets to Common Shareholders of record in one or more distributions on or after 1 February, 2034 or as extended by the Board.

The anticipated portfolio allocations are based on current market conditions and the expectations of the portfolio management team. Current market conditions may change and the Fund’s portfolio allocations may vary over time consistent with the Fund’s investment policies.

Important information on risk

Past performance is no guarantee of future results. Closed-end fund shares are subject to investment risk, including the possible loss of the entire principal amount that you invest, and there is no assurance that an investment will provide positive performance over any period of time. Common shares frequently trade at a discount to their net asset value. At any point in time, your common shares may be worth less than you paid, or the net asset value, even after considering the reinvestment of fund distributions. Certain products and services may not be available to all entities or persons. There is no guarantee that the Fund's investment objectives will be achieved.

Funds have adopted one of three distribution approaches: income-only (IO), managed distribution (M), or level distribution (V). Historical distributions from managed distributions have included realized capital gains along with net investment income, and have also included a return of capital, representing unrealized gains or paid-in capital or both. Historical distributions under a level distribution have included a return of capital along with net investment income and may also include realized capital gains. It is important to understand these sources, and also the fund’s distribution rate relative to its NAV performance.

The tax treatment of fund distributions may be affected by future changes in tax laws and regulations or their interpretation by the Internal Revenue Service or state tax authorities. The London Interbank Offered Rate or LIBOR, is used throughout global banking and financial industries to determine interest rates for a variety of financial instruments (such as debt instruments and derivatives) and borrowing arrangements. The United Kingdom's Financial Conduct Authority has undertaken a multiyear phase out of LIBOR. As a result, the administrator of LIBOR ceased publishing certain LIBOR settings after December 31, 2021 and expects to cease publication of all settings after June 30, 2023. The transition away from LIBOR may involve, among other things, increased volatility or illiquidity in markets for instruments that currently rely on LIBOR, such as floating-rate debt obligations.