Index Definitions. An investor cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes. Global bonds: Barclays Capital Global Aggregate Bond Index, a broad-market measure of global investment-grade debt from many different currencies. Global high yield: Bloomberg Barclays Global High Yield Index, a multi-currency flagship measure of the global high yield debt market. Preferred securities: 60% ICE BofAML U.S. Capital Securities Index (a subset of the ICE BofAML U.S. Corporate Index including all fixed-to-floating rate, perpetual callable and capital securities.); 25% ICE BofAML Hybrid Preferred Securities 8% Constrained Index (contains all hybrid securities in the ICE BofAML Fixed Rate Preferred Securities Index, with a maximum 8% exposure per issuer) and 15% contingent capital securities (through 2016: ICE BofAML Contingent Capital Index, which tracks the performance of US dollar denominated investment grade and below-investment-grade contingent capital debt publicly issued in the US domestic and eurobond markets, with a remaining term to final maturity of at least one month and at least 18 months to maturity at point of issuance; after 2016: Bloomberg Barclays Developed Market U.S. Contingent Capital Index, includes hybrid capital securities in developed markets with explicit equity conversion or write down loss absorption mechanisms that are based on an issuer’s regulatory capital ratio or other explicit solvency-based triggers). U.S. Preferred Securities: 50/50 blend of ICE BofAML U.S. Capital Securities Index and ICE BofAML Fixed Rate Preferred Securities Index (tracks the performance of fixed-rate U.S. dollar-denominated preferred securities issued in the U.S. domestic market). MSCI World Index is net is a free-float-adjusted index that measures performance of large- and mid-capitalization companies representing developed market countries and is net of dividend withholding taxes. U.S. Treasuries: ICE BofAML U.S. Treasury Index, which tracks the performance of U.S. dollar-denominated sovereign debt publicly issued by the U.S. government in its domestic market.
Cohen & Steers has been at the forefront of active investing in preferred securities for more than a decade. For investors seeking the benefits of preferreds, including the potential for high and tax-advantaged income, we offer two strategies: Preferred Securities and Low Duration Preferred Securities.
Cohen & Steers has been at the forefront of active investing in preferred securities for more than a decade. For mutual fund investors seeking the benefits of preferreds, including the potential for high and tax-advantaged income, we offer two products.
With the Federal Reserve moving further away from 0% interest rates and bond yields on the rise, many investors are turning to low-duration fixed income to preserve capital, often at the expense of yield.
With many investors turning to risky bonds for yield, being diversified may be more important than ever. For a more balanced portfolio, consider pairing high yield bonds with preferred securities, which offer attractive tax-advantaged income and have distinct characteristics that may complement traditional fixed income holdings.