Cohen & Steers Quality Income Realty Fund, Inc. Changes Non-Fundamental Investment Policy

Rhea-AI Summary

Cohen & Steers Quality Income Realty Fund (NYSE: RQI) announced an amendment to its investment policy, effective March 31, 2022. The former policy required 80% of total assets to be invested in high-quality REITs producing income. This will now include income-producing common stocks and other securities from real estate companies. The definition of a 'real estate company' remains, focusing on revenue from real estate activities. Changes to this policy can only occur with 60 days advance notice to shareholders as per regulatory requirements.

Positive

• The new policy provides broader investment opportunities by including common stocks and securities beyond just high-quality REITs.
• The flexibility in investment strategy may enhance potential income generation for stakeholders.

Negative

• The shift from a focus solely on high-quality REITs may expose investors to increased risk associated with less stable income-producing stocks.
• The change in investment approach may lead to lower predictability in income generation, which could affect shareholder confidence.

NEW YORK, Dec. 8, 2021 /PRNewswire/ -- Cohen & Steers Quality Income Realty Fund, Inc. (NYSE: RQI; the "Fund"), announced today that, effective at the close of business on March 31, 2022, the Fund will amend its 80% investment policy.

The Fund rescinds the following non-fundamental investment policy (the "Former Policy"):

Under normal market conditions, at least 80% of the Fund's total assets are invested in income producing equity securities issued by high quality real estate investment trusts ("REITs"). High quality REITs are companies that, in the opinion of the Fund's investment manager, offer prospects for above average revenue and earnings growth.

The Former Policy will be replaced in its entirety with the following new non-fundamental investment policy (the "New Policy"):

Under normal market conditions, at least 80% of the Fund's total assets are invested in income-producing common stocks and other securities issued by real estate companies, such as real estate investment trusts ("REITs"). Real estate securities include common stocks, preferred stocks, and other equity and debt securities issued by real estate companies, including REITs and similar REIT-like entities.

The Fund defines a real estate company as a company that derives at least 50% of its revenue from the ownership, construction, financing, management or sale of commercial, industrial, or residential real estate or has at least 50% of its assets in such real estate.

The New Policy will be effective at the close of business on March 31, 2022 and may only be changed thereafter by the Board of Directors of the Fund following the provision of at least 60 days' written notice to the Fund's shareholders pursuant to Rule 35d-1 under the Investment Company Act of 1940, as amended.

About Cohen & Steers. Cohen & Steers is a leading global investment manager specializing in real assets and alternative income, including 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 and Tokyo.

Website: https://www.cohenandsteers.com/
Symbols: (NYSE: CNS, RQI)

 

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SOURCE Cohen & Steers, Inc.

FAQ

What is the new investment policy for Cohen & Steers Quality Income Realty Fund (RQI)?

Effective March 31, 2022, at least 80% of the fund's assets will be invested in income-producing common stocks and other securities issued by real estate companies.

How does the new policy impact RQI's investment strategy?

The new policy allows for a broader range of investments beyond just high-quality REITs, potentially increasing income opportunities.

When will the new investment policy be effective for RQI?

The new investment policy will be effective at the close of business on March 31, 2022.

What defines a real estate company under RQI's new policy?

A real estate company is defined as one that derives at least 50% of its revenue from real estate activities or has at least 50% of its assets in such real estate.