Cohen & Steers' Global Real Estate Funds to Merge
NEW YORK, March 21, 2018 /PRNewswire/ -- The shareholders of Cohen & Steers Institutional Global Realty Shares, Inc. ("IGRS") have approved the reorganization of IGRS with and into Cohen & Steers Global Realty Shares, Inc. ("CSS") (collectively, the "Funds"), effective at the close of business on March 23, 2018. With combined assets of approximately $1.1 billion, CSS will be in the top-10 in assets under management among actively managed global real estate securities mutual funds.1
The reorganization brings together two highly ranked funds within the global real estate category, each with 4-star overall Morningstar ratings. Cohen & Steers believes that combining the Funds will benefit the shareholders of both IGRS and CSS by reducing annual operating gross and net expense ratios, increasing marketability and providing portfolio-management and operational efficiencies.
The Funds have substantially similar investment policies and the same investment objective of total return—consisting of capital appreciation and current income—which they seek to achieve through investment in equity securities issued by U.S. and non-U.S. real estate companies, including real estate investment trusts (REITs) and other REIT-like entities.
CSS will acquire all of the assets and liabilities of IGRS in a tax-free transaction in exchange for an equal aggregate value of newly issued CSS Class I common shares. IGRS shareholders will receive Class I common shares of CSS in an amount equal to the aggregate net asset value of IGRS common shares, as determined at the close of business on March 23, 2018, less the shareholder's portion of the costs of the reorganization.
Cohen & Steers expects that after the reorganization, the administrative expenses of CSS will be less than the aggregate current expenses of each of the Funds operating separately, as fixed expenses will be spread over a larger asset base. Additionally, effective at the close of business on March 23, 2018, Cohen & Steers Capital Management, Inc., the Funds' Investment Advisor, has agreed to reduce the management fee for CSS from an annual rate of 0.80% of average daily net assets to 0.75% of average daily net assets. Cohen & Steers has also contractually agreed to waive its fee and/or reimburse expenses through June 30, 2019, so that the total annual operating expenses (excluding acquired fund fees and expenses, taxes and extraordinary expenses) do not exceed 1.25% for Class A shares, 1.90% for Class C shares, 0.90% for Class F shares, 0.90% for Class I shares, 1.40% for Class R shares, 1.25% for Class T shares and 0.90% for Class Z shares.
The fixed expenses of the combined fund are set forth below, effective at the close of business on March 23, 2018:
| Class |
Class |
Class |
Class |
Class |
Class |
Class |
|||||||
| Shareholder Fees (fees paid directly from your investment): |
|||||||||||||
| Maximum Sales Charge (Load) Imposed On Purchases |
4.50% |
None |
None |
None |
None |
2.50% |
None |
||||||
| Maximum Deferred Sales Charge (Load) (as % of the |
None |
1.00%(2) |
None |
None |
None |
None |
None |
||||||
| Annual Fund Operating Expenses (expenses that you pay |
|||||||||||||
| Management Fee.............................................. |
0.75% |
0.75% |
0.75% |
0.75% |
0.75% |
0.75% |
0.75% |
||||||
| Distribution (12b-1) Fees.................................... |
0.25% |
0.75% |
None |
None |
0.50% |
0.25% |
None |
||||||
| Other Expenses................................................ |
0.12% |
0.12% |
0.12% |
0.12% |
0.12% |
0.12% |
0.12% |
||||||
| Shareholder Service Fee(3)....................... |
0.10% |
0.25% |
None |
0.06% |
None |
0.08% |
None |
||||||
| Total Other Expenses............................. |
0.22% |
0.37% |
0.12% |
0.18% |
0.12% |
0.20% |
0.12% |
||||||
| Total Annual Fund Operating Expenses(4).............. |
1.22% |
1.87% |
0.87% |
0.93% |
1.37% |
1.20% |
0.87% |
||||||
| Fee Waiver/Expense Reimbursement(4).............. |
(0.00)% |
(0.00)% |
(0.00)% |
(0.03)% |
(0.00)% |
(0.00)% |
(0.00)% |
||||||
| Total Annual Fund Operating Expenses (after fee |
1.22% |
1.87% |
0.87%(5) |
0.90% |
1.37% |
1.20%(5) |
0.87% |
| (1) |
Class F shares and Class T shares are currently not available for purchase. |
| (2) |
For Class C shares, the maximum deferred sales charge does not apply after one year. |
| (3) |
The maximum shareholder service fee for Class I shares and Class T shares is 0.10%. |
| (4) |
Cohen & Steers Capital Management, Inc., the Fund's investment advisor (the "Advisor"), has contractually agreed to waive its fee and/or reimburse expenses through June 30, 2019 so that the Fund's total annual operating expenses (excluding acquired fund fees and expenses, taxes and extraordinary expenses) do not exceed 1.25% for Class A shares, 1.90% for Class C shares, 0.90 % for Class F shares, 0.90% for Class I shares, 1.40% for Class R shares, 1.25% for Class T shares and 0.90% for Class Z shares. This contractual agreement can be amended or terminated at any time by agreement of the Board of Directors of CSS and the Investment Advisor and will terminate automatically in the event of termination of the investment advisory agreement between the Investment Advisor and CSS. |
| (5) |
The total annual fund operating expenses for Class F shares and Class T shares are estimated. |
Performance data quoted represents past performance, which is no guarantee of future results. The overall Morningstar rating is derived from a weighted average of the risk-adjusted performance figures associates with a fund's 3-, 5- and 10-year (if applicable) Morningstar Rating metrics. Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages. The global real estate fund peer group category consists of 197 funds (all classes).
Please consider the investment objectives, risks, charges and expenses of any Cohen & Steers U.S. registered open-end fund carefully before investing. A summary prospectus and prospectus containing this and other information may be obtained, free of charge, by visiting cohenandsteers.com or by calling 800.330.7348. Please read the summary prospectus and prospectus carefully before investing.
This material represents an assessment of the market environment at a specific point in time and should not be relied upon as investment advice, does not constitute a recommendation to buy or sell a security or other investment and is not intended to predict or depict performance of any investment. This material is not being provided in a fiduciary capacity and is not intended to recommend any investment policy or investment strategy or take into account the specific objectives or circumstances of any investor. Please consult with your investment, tax or legal adviser regarding your individual circumstances prior to investing.
Risks of Investing in Real Estate Securities
Risks of investing in real estate securities are similar to those associated with direct investments in real estate, including falling property values due to increasing vacancies or declining rents resulting from economic, legal, political or technological developments, lack of liquidity, limited diversification and sensitivity to certain economic factors such as interest rate changes and market recessions. Foreign securities involve special risks, including currency fluctuations, lower liquidity, political and economic uncertainties, and differences in accounting standards. Some international securities may represent small- and medium-sized companies, which may be more susceptible to price volatility and less liquidity than larger companies. The Funds are classified as "non-diversified" funds under the federal securities laws because they can invest in fewer individual companies than a diversified fund. However, the Funds must meet certain diversification requirements under the U.S. tax laws. No representation or warranty is made as to the efficacy of any particular strategy or fund or the actual returns that may be achieved.
Cohen & Steers Capital Management, Inc. (Cohen & Steers) is a registered investment advisory firm that provides investment management services to corporate retirement, public and union retirement plans, endowments, foundations and mutual funds.
Cohen & Steers U.S. registered open-end funds are distributed by Cohen & Steers Securities, LLC and are only available to U.S. residents.
Cohen & Steers UK Limited is authorized and regulated by the Financial Conduct Authority (FRN 458459).
Symbol:NYSE: CNS
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.
1 Data as of February 28, 2018.
SOURCE Cohen & Steers
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