NEW YORK, Dec. 7, 2015 /PRNewswire/ -- Cohen & Steers, Inc. (NYSE: CNS), a leading global investment manager, announces the launch of the Cohen & Steers Low Duration Preferred and Income Fund, a first-of-its-kind mutual fund offering the potential for attractive monthly income with added tax advantages, along with reduced sensitivity to changes in interest rates.
The Fund delivers Cohen & Steers' market-leading preferred securities strategy to retail and institutional investors, focusing on security structures with low durations. Under normal market conditions, the Fund will have a weighted-average modified duration of three years or less and will potentially offer a higher income rate than many longer-duration fixed-income offerings. Additionally, a substantial portion of the income distributed by the Fund may be considered qualified dividend income for tax purposes, generally taxed at a lower rate than regular income, resulting in the potential for attractive yields both before and after taxes.
"Cohen and Steers has been investing in preferred securities since the late 1990s and we've found them to offer tremendous income potential with unique investment characteristics," said Robert Steers, Chief Executive Officer of Cohen & Steers. "Leveraging our extensive experience with the asset class, we believe the Low Duration Preferred and Income Fund is an excellent vehicle to help investors manage interest-rate risk in today's market environment."
The Fund provides access to the global preferred securities market, including over-the-counter securities that are available only to large institutional investors. The majority of preferred securities are issued by the world's largest banks, insurance companies, utilities, and real estate investment trusts, which may be less represented in other fixed-income asset classes, notably high yield. While most preferred securities are from issuers with investment-grade credit ratings, the Fund will also pursue value-driven opportunities in below-investment-grade and non-rated issues.
Portfolio managers William Scapell and Elaine Zaharis-Nikas have an average of 21 years of experience and have been managing the firm's preferred securities portfolios since 2003. They are backed by a team of analysts whose proprietary research is supported by extensive contacts in the industry. The group also leverages the global research capabilities of Cohen & Steers' market-leading real estate and infrastructure investment professionals. Together, the team oversees $7.9 billion in preferred securities for individual investors and pension funds around the world.
The Fund's five share classes have been listed on the NASDAQ exchange under the following symbols:
Class A: LPXAX Class C: LPXCX Class I: LPXIX Class R: LPXRX Class Z: LPXZX
About Cohen & Steers. Cohen & Steers is a global investment manager specializing in liquid real assets, including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Hong Kong, Tokyo, and Seattle.
This press release is not intended as an offer of or advice to purchase shares of Cohen & Steers Low Duration Preferred and Income Fund or Cohen & Steers, Inc.
Please consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. A summary prospectus and prospectus containing this and other information may be obtained, free of charge, by calling 800-330-7348 or by visiting cohenandsteers.com. Please read the summary prospectus or prospectus carefully before investing.
Cohen & Steers Securities, LLC, distributor.
Risks of Investing in Preferred Securities Investing in any market exposes investors to risks. In general, the risks of investing in preferred securities are similar to those of investing in bonds, including credit risk and interest-rate risk. As nearly all preferred securities have issuer call options, call risk and reinvestment risk are also important considerations. In the event of bankruptcy, a company's preferred securities are senior to common stock but subordinated to all other types of corporate debt. In addition, investors face equity-like risks, such as deferral or omission of distributions and higher corporate governance risks with limited voting rights. The Fund is classified as a "non-diversified" fund under the federal securities laws because it can invest in fewer companies than a diversified fund. However, the fund must meet certain diversification requirements under the U.S. tax laws.
Preferred securities funds may invest in below-investment-grade securities, as well as unrated securities judged to be below investment grade by the Advisor. Below-investment-grade securities or equivalent unrated securities generally involve greater price volatility and risk of loss of income and principal, and may be more susceptible to real or perceived adverse economic and competitive industry conditions than higher-grade securities. The benchmarks do not contain below-investment-grade securities.
Special risks of investing in foreign securities include (i) currency fluctuations, (ii) lower liquidity, (iii) political and economic uncertainties, and (iv) differences in accounting standards. Some international securities may represent small- and medium-sized companies, which may be more susceptible to price volatility and less liquid than larger companies.
Duration Risk Duration is a mathematical calculation of the average life of a fixed-income or preferred security that serves as a measure of the security's price risk to changes in interest rates (or yields). Securities with longer durations tend to be more sensitive to interest rate (or yield) changes than securities with shorter durations.
For more information please visit cohenandsteers.com.
SOURCE Cohen & Steers, Inc.