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INCOME MANAGEMENT FUND MONEY MARKET CUMULATIVE PREFERRED STOCK RATED 'AA+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, May 3 /PRNewswire/ -- Preferred Income Management Fund's 775 shares of money market cumulative preferred stock are rated `AA+' by Fitch. The rating of the $77.5 million auction rate issue is based on 225 percent minimum asset-to-liability coverage, conservative discount factors required to determine asset coverage, and the fund's investment guidelines. The fund's investment advisor, Flaherty & Crumrine Inc., invests at least 65 percent of fund's assets in either fixed-rate or adjustable-rate preferred stock, primarily concentrated in the utility and banking industries. As of March 31, 1993, approximately 97 percent of PIMF's assets were invested in preferred stock.
 This rating does not address the market liquidity for auction rate money market cumulative preferred shares nor does it address the ability to remarket these shares at auction either now or in the future.
 Flaherty & Crumrine Inc. pursues strategies it expects to result in the fund's income increasing in response to significant increases in interest rate, while being relatively resistant to the impact of significant declines in rates. The fund is managed with a view to maximizing the portion of the fund's distributions eligible for the Dividends Received Deduction, a 70 percent dividend exclusion available to corporate investors that can be applied to certain eligible investments held for at least 46 days.
 Auction rate preferred stock dividend rates are determined through a periodic bidding process, or auction. Auctions normally occur at 49-day intervals, but can be less frequent under certain conditions. The winning bid rate, or lowest yield, will apply to all accepted bids if sufficient clearing bids exist. If there are not enough bids, a maximum rate will apply for the subsequent rate period. The maximum rate is typically a function of the 60-day `AA' composite commercial paper rate.
 Preferred Income Management Fund is a closed-end fund traded on the New York Stock Exchange.
 -0- 5/3/93
 /CONTACT: Steven B. Schoen, 212-908-0615 or Mary E. Griffin, 212-908-0537, both of Fitch/
 (PFM)


CO: Preferred Income Management Fund ST: IN: FIN SU: RTG

WB -- NY053 -- 3754 05/03/93 11:36 EDT
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Publication:PR Newswire
Date:May 3, 1993
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