Summary

• More than 50% of PFXF's assets are Mandatorily Convertible. They are effectively a bet on the common shares of the issuer without full upside.
• Many now trade at a substantial premium, and downside protection is limited at these levels.
• Income investors should be aware that dividends of the underlying assets are PIKable.
• The advantageous tax status available to direct owners of the preferred shares PFXF owns might not be passed through to PPXF owners.

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