Cohen & Steers began managing preferred securities portfolios in1997 to increase the income of our REIT portfolios. In 2003, we expanded our mandate to include preferreds in standalone accounts. In May 2010, we launched a preferreds mutual fund; retail investors now have the potential to benefit from this high-yielding market sector.

Our preferred securities investment team, led by William Scapell, includes three analysts and a dedicated trader. As of March 31, 2012, the firm had $4.7 billion in preferred securities under management.

  Cohen & Steers Preferred Securities and Income Fund
Learn more about preferred securities and the ways in which they trade. Have you thought about using preferreds to help manage interest-rate risk and reduce portfolio risk?

  Viewpoint: Preferred Securities - Opportunities on the Cusp of Financial Reform
In this Viewpoint, we explore the potential impact of new regulations on preferred issuers and investors. We highlight investment opportunities that may emerge as banks redeem certain types of preferred securities and potentially replace them with new forms of qualifying bank capital securities.

  Q&A: When Interest Rates Rise: Opportunity and Risks in Today’s Preferred Securities Market
Interest rates will rise—it’s just a matter of when. In this piece, we answer investors’ questions about how higher rates will affect preferred securities.

  ViewPoint: Sizing Up the Preferred Market: The World Beyond Investment-Grade Exchange-Traded Issues
Preferred securities took a beating in the financial crisis of 2008-2009 (along with the banks that issue so many of them). But there are some interesting stories and attractive opportunities among the “fallen angels.”

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 addition, investors face equity-like risks, such as deferral or omission of distributions, subordination to bonds and other more senior debt, and higher corporate governance risks with limited voting rights. An investment in the Fund is subject to investment risk, including the possible loss of the entire principal amount that you invest. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably.

Cohen & Steers mutual fund investors should consider the investment objectives, risks, charges and expenses of any Cohen & Steers fund carefully before investing. A 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 prospectus carefully before investing.