Chad Conwell
Chief Compliance Officer, Vice President and Secretary at Flaherty & Crumrine Dynamic Preferred & Income Fund
Executive
About Chad Conwell
Chad Conwell, age 52, serves as Chief Compliance Officer, Vice President and Secretary of Flaherty & Crumrine Dynamic Preferred and Income Fund (DFP) and has served in these officer roles since DFP’s inception; he is also Executive Vice President, Chief Compliance Officer and Chief Legal Officer of Flaherty & Crumrine Incorporated, the investment adviser to the fund, and a Director and equity owner of the adviser . He signed the 2025 joint proxy statement as Secretary for the Funds . While fund-level TSR is not disclosed here, the Board’s 2025 advisory contract review noted DFP’s NAV total return performance was at/above peer median over 1- and 5-year periods and below median over 3 years (10-year equal or greater than median across the complex), reflecting the adviser’s adherence to its investment discipline; these are fund performance assessments and not tied to individual officer incentives .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Flaherty & Crumrine Incorporated (Adviser) | Director; Executive Vice President; Chief Legal Officer; Chief Compliance Officer | Past five years (ongoing) | Senior management and control functions at the adviser that manages DFP; equity owner of adviser . |
| DFP (Flaherty & Crumrine Dynamic Preferred and Income Fund) | Chief Compliance Officer; Vice President; Secretary | Since inception (inception investment advisory agreement dated April 17, 2013) | Oversees fund compliance and governance; corporate secretary function . |
| PFD, PFO, FFC, FLC (sister closed-end funds) | Chief Compliance Officer; Vice President; Secretary | Since 2005 | Officer roles across the complex; compliance and governance leadership . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Flaherty & Crumrine Incorporated | Director; Executive Vice President; Chief Legal Officer; Chief Compliance Officer; equity owner | Ongoing | Ownership and board role in the adviser aligns interests with advisory fee continuity and platform reputation . |
Fixed Compensation
| Item | Disclosure |
|---|---|
| Compensation paid by DFP to executive officers | No executive officer or person affiliated with a Fund received compensation from a Fund in excess of $60,000 for FYE Nov 30, 2024; officers are typically compensated by the adviser rather than the fund . |
Equity Ownership & Alignment
| Item | Disclosure |
|---|---|
| Beneficial ownership of DFP by directors, nominees, and executive officers (as a group) | Less than 1% of DFP shares as of Dec 31, 2024 . |
| DFP shares outstanding (for context) | 20,538,137 shares as of Jan 16, 2025 record date . |
| Adviser ownership | Conwell is named among the owners of Flaherty & Crumrine Incorporated (adviser), alongside other senior principals; he is also a Director of the adviser . |
| Advisory fee economics (DFP) | DFP paid the adviser $3,721,761 in advisory fees for FYE Nov 30, 2024; DFP’s fee schedule is 0.575% on the first $200mm of average daily Managed Assets and 0.50% above $200mm . |
| Adviser internal restructuring | 2025 internal restructuring involves repurchasing shares from retired shareholders and reallocating to current management, potentially viewed as a change of control; day-to-day management and advisory fees remain unchanged under new agreements if approved . |
Employment Terms
| Term | Detail |
|---|---|
| Officer service terms | Officers serve until their successors are elected and qualify or until earlier resignation/removal . |
| Service start | DFP: since inception; PFD/PFO/FFC/FLC: since 2005 . |
| Role capacity | Secretary to the Funds (signed 2025 joint proxy) . |
Performance & Track Record
- Board’s 2025 advisory contract review noted: over 10 years, each fund had performance equal or better than peer median; for the 1-year period, PFO, FFC, FLC and DFP were equal or better than median; for the 3-year period all funds were below the median; for 5 years, PFD, FFC, FLC and DFP were equal or better than median .
- The Board cited the adviser’s knowledge of preferred securities, internal resources, and “culture of compliance,” and concluded the quality of services is high .
Governance and Related-Party Context
- The adviser’s principals include Conwell; the funds pay advisory fees to the adviser under disclosed breakpoint schedules; DFP paid $3.72mm in FY2024 .
- The adviser reported no affiliates engaged in brokerage, and the Funds paid no brokerage commissions to adviser affiliates in the most recent fiscal year; adviser does not obtain soft-dollar credits .
Investment Implications
- Compensation transparency: Fund filings do not disclose Conwell’s cash or equity compensation at the adviser level; DFP does not pay material executive comp directly, limiting pay-for-performance visibility for this officer .
- Alignment: Conwell’s equity ownership and directorship at the adviser create economic alignment with advisory fee stability and long-term platform value; the 2025 adviser restructuring reallocating equity to current management may further increase alignment and retention incentives, with no change to services or fees under new agreements .
- Insider pressure/vesting: No fund-level disclosures of RSUs/options, vesting schedules, pledging, or hedging for Conwell; directors and officers as a group own <1% of DFP, suggesting limited direct fund-share selling pressure; monitor future ownership disclosures and Form 4s for signals if available .
- Execution risk: As CCO/CLO and Secretary, Conwell’s remit centers on legal/compliance and governance rather than portfolio management; Board assessments emphasize strong compliance culture and satisfactory long-term performance relative to peers, supporting low compliance-driven execution risk .