Cohen & Steers Launches SICAV Short Duration Preferred Income Fund

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Cohen & Steers (NYSE: CNS) has announced the launch of its SICAV Short Duration Preferred Income Fund, marking the firm's second preferred securities fund for UCITS investors. The new fund targets the $1.2 trillion preferred securities market, focusing on investment-grade, institutional preferreds with a target duration of less than three years.

The fund aims to provide high current income and capital preservation through investments in global preferred and debt securities. It is managed by Elaine Zaharis-Nikas, Head of Fixed Income and Preferred Securities, alongside Portfolio Managers Jerry Dorost and Robert Kastoff.

Preferred securities offer key benefits including:

• High and stable income potential
• Portfolio diversification
• Low correlation to fixed income universe

Cohen & Steers currently manages $18.3 billion in preferreds and has been investing in the asset class since 2003.

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LONDON, March 3, 2025 /PRNewswire/ -- Cohen & Steers, Inc. (NYSE: CNS) announced today the launch of the Cohen & Steers SICAV Short Duration Preferred Income Fund. This is the firm's second fund focused on the preferred securities market available to UCITS investors, in addition to the Cohen & Steers SICAV Preferred Income Fund, launched in 2017.

With some of the highest yields in fixed income, preferred securities offer several key benefits, including the potential for high and stable income, portfolio diversification and low correlation to the fixed income universe. Preferreds act like bonds, paying a fixed or floating rate of income, but are a form of equity for issuers that lie between common stock and senior debt in a company's capital structure. They are generally issued by large, regulated companies with relatively stable cash flows, such as banks, insurance companies, utilities and other sectors that are less represented in other fixed income strategies.

Elaine Zaharis-Nikas, Head of Fixed Income and Preferred Securities, said:
"We see significant opportunities in the $1.2 trillion preferred securities market driven by attractive market fundamentals, including an increase in new issuance from institutional, over-the-counter preferreds and contingent capital securities. Recent methodology changes from select rating agencies have also spurred new issuance from non-financial companies, improving the diversification of the preferred securities universe. Overall, we are optimistic about preferreds' return potential and the appeal of short duration strategies."

The Fund seeks to provide investors with high current income and capital preservation as a secondary objective through investments in the global preferred and debt securities universe with a focus on investment-grade, institutional preferreds. It offers a lower target duration of less than three years, though the duration may be longer depending on market conditions, and seeks to reduce portfolio interest rate sensitivity and manage volatility. The Fund is managed by Elaine Zaharis-Nikas, Head of Fixed Income and Preferred Securities, and Portfolio Managers Jerry Dorost and Robert Kastoff.

David Conway, Head of International Wholesale Distribution, added:
"In an environment where income and quality matter more than ever, we're excited to launch the Cohen & Steers SICAV Short Duration Preferred Income Fund to provide investors with access to a diversified portfolio of institutional preferred securities. We believe this fund is a compelling solution for investors seeking long-term total return through high and resilient income."

As a global leader in actively managed preferred securities strategies, Cohen & Steers manages $18.3 billion in preferreds and has invested in the asset class since 2003.

To learn more about the Cohen & Steers SICAV Short Duration Preferred Income Fund, please visit: https://www.cohenandsteers.com/funds/short-duration-preferred-income-fund/.  

To learn more about the global preferred securities market, please visit:  https://www.cohenandsteers.com/themes-post/preferred-securities-knowledge-center/.

This is a marketing communication. Please refer to the prospectus of the Cohen & Steers SICAV and to the relevant KIID/KID before making any final investment decisions. These documents are available free of charge on the Cohen & Steers website.

About Cohen & Steers SICAV Funds. The Funds are sub-funds of Cohen & Steers SICAV, a Luxembourg-domiciled undertaking for collective investment in transferrable securities (UCITS). Shares of the Funds are only offered pursuant to the current prospectus and the sales of shares of the Funds may be restricted in certain jurisdictions. In particular, shares may not be offered or sold, directly or indirectly in the United States or to U.S. persons, as more fully described in the Funds' prospectus. Please see the prospectus for additional information including important risk considerations, potential loss of capital, and details about fees and expenses. Past performance is no guarantee of future results.

About Cohen & Steers. Cohen & Steers is a leading global investment manager specializing in real assets and alternative income, including listed and private real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and Singapore.

This communication is not contractually binding or legislatively required. This communication is not sufficient to make an investment decision. Past performance is no guarantee of future results. There is no guarantee that any historical trend illustrated herein will be repeated in the future, and there is no way to predict precisely when such a trend will begin. There is no guarantee that any market forecast made in this commentary will be realized. This material is not being provided in a fiduciary capacity, and represents an assessment of the market environment at a specific point in time, should not be relied upon as investment or tax advice and is not intended to predict or depict performance of any investment, nor may it be construed as investment advice for any product or service sponsored by Cohen & Steers, Inc. or any of its affiliates or agents.

Risk
Risks of investing in the Fund are described in the prospectus and key investor documents, which are available on the Cohen & Steers website (see link to documents above). Investment risk including possible loss of entire amount invested. Increased credit risk due to subordination to all other types of corporate debt. Default risk because the issuer experiences a decline in its financial status. Contingent Convertible Securities("CoCos") are typically subject to greater levels of credit and liquidity risk. Call risk causing sub-fund to invest in lower yielding securities. Increases in interest rates may cause process to fall. Foreign security risk due to currency fluctuations, lower liquidity, political and economic uncertainties and differences in accounting standards. Subject to liquidity risk.

CONTACT: Robert Klemens
Vice President, Communications
media@cohenandsteers.com

Website: https://www.cohenandsteers.com
Symbols: NYSE: CNS

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SOURCE Cohen & Steers, Inc.

FAQ

What is the target duration of Cohen & Steers' new SICAV Short Duration Preferred Income Fund?

The fund targets a duration of less than three years, though this may vary depending on market conditions.

How large is the preferred securities market that CNS is targeting with this fund?

The fund targets the $1.2 trillion preferred securities market.

What are the main investment objectives of CNS's new Short Duration Preferred Income Fund?

The fund primarily seeks to provide high current income, with capital preservation as a secondary objective.

How much does Cohen & Steers (CNS) currently manage in preferred securities?

Cohen & Steers manages $18.3 billion in preferred securities.

What types of companies typically issue the preferred securities that CNS invests in?

The securities are typically issued by large, regulated companies with stable cash flows, such as banks, insurance companies, and utilities.