<DOCUMENT>
<TYPE>EX-99.77Q1 OTHR EXHB
<SEQUENCE>4
<FILENAME>pfo77q1.txt
<TEXT>
FLAHERTY & CRUMRINE FUNDS
Flaherty & Crumrine Preferred Income Opportunity Fund

EXHIBIT TO ITEM 77Q1
Policies with respect to security investments

The following Investment Policy Modification is
incorporated by reference in Flaherty & Crumrine
Preferred Income Opportunity Fund Form Type 8-K, dated
February 3, 2011 (Accession No. 0000950123-11-008745).
</TEXT>
</DOCUMENT>
