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Cohen & Steers Limited Duration Preferred and Income Fund

 

Total Returns December 31, 2018

Period

LDP Mkt Price

LDP NAV

ICE BofAML US Capital Securities  Index

Linked Index*

QTD

-6.48%

-7.06%

-2.55%

-5.09%

1 Year

-9.70%

-7.68%

-3.57%

-5.25%

3 Year

6.79%

4.95%

3.60%

3.19%

5 Year

7.52%

6.67%

4.09%

4.29%

Since Inception (7/27/12)

5.88%

7.69%

5.26%

4.74%

*Linked Index: The blended benchmark consists of 75% ICE BofAML US Capital Securities Index and 25% ICE BofAML 7% Constrained Adjustable Rate Preferred Securities Index through 1/31/2017.  Thereafter, it consists of 70% ICE BofAML US IG Institutional Capital Securities Index, 20% ICE BofAML 7% Constrained Adjustable Rate Preferred Securities Index, and 10% Bloomberg Barclays Developed Market USD Contingent Capital Index.

The ICE BofAML US Capital Securities Index is a subset of The ICE BofAML US Corporate Index including all fixed-to-floating rate, perpetual callable and capital securities. An investor cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes. The ICE BofAML 7% Constrained Adjustable Rate Preferred Securities Index tracks the performance of US dollar-denominated investment-grade floating-rate preferred securities publicly issued in the US domestic market, but with issuer exposure capped at 7%. The Bloomberg Barclays Developed Market USD 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.

Performance data quoted represents past performance. Past performance is no guarantee of future results. The rate of return will vary and the principal value of an investment will fluctuate and shares, if sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Returns are historical and include change in share price and reinvestment of all distributions. An investor cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes.  Month-end performance information can be obtained by visiting our website at cohenandsteers.com.

Performance results reflect the effects of leverage, which can positively impact performance in an up market and negatively impact performance in a down market. Periods greater than 12 months are annualized. Returns are historical and include change in share price and reinvestment of all distributions.

Index returns are presented net of withholding taxes for all periods available. 

Percentages may differ from data in the Fund's financial statements due to the effect of fair value pricing.

Distribution Rate: 8.58%

SEC Yield: 6.07%

NAV per share: $23.23

At December 31, 2018

For information on the distribution yield of this fund, click here.

 

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Leverage represented as a percentage of the Fund’s managed assets as of the most recent month end. Leverage is created whenever a closed-end fund has investment exposure in excess of its net assets. The use of leverage is speculative and there are special risks and costs associated with leverage. The use of leverage increases the volatility of the Fund's net asset value in both up and down markets. The Fund seeks to enhance its dividend yield through leverage but there is no guarantee that the Fund's leverage strategy will be successful. 

Expense ratios as disclosed in the Fund’s most recent semi-annual report to stockholders dated June 30, 2018. Expense ratios are net of waivers and/or reimbursements.

Portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation or solicitation for any person to buy, sell or hold any particular security

NAV per share is as of the prior day’s market close of regular trading on the NYSE, generally 4:00 p.m. Eastern time, on each day the NYSE is open for trading.

Distribution Rate is calculated dividing the last distribution paid per share (annualized) by the market price. Note that the number of income distributions is based on the fund’s distribution payment frequency (i.e. monthly or quarterly). A fund may pay distributions in excess of its net investment company taxable income and, to the extent this occurs, the distribution yield quoted will include a return of capital. The estimated return of capital for each distribution is also available on this website by clicking on the Distributions tab on each fund’s landing page.

SEC yield is calculated by dividing annualized net investment income per share during a 30-day period by the maximum offering price per share as of the close of that period. SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities. Since certain distributions received by the funds from real estate investment trusts (REITs) may consist of dividend income, return of capital and capital gains, and the character of these distributions cannot be determined until after the end of the year, the SEC yield has been adjusted for the funds that invest significantly in REITs based on estimates of return of capital and capital gains.

Click here for Cohen & Steers Limited Duration Preferred and Income Fund factsheet

Please see important disclosures and risks below.

By clicking on the link above you will be leaving the Cohen & Steers website. Please note that we are providing the link to this third party website only as a convenience and the inclusion of a link to the linked site does not imply any endorsement, approval, investigation, verification or monitoring by us of any content or information contained within or accessible from the linked site. We do not control the accuracy, completeness, timeliness or appropriateness of the content or information on the linked site and you will be subject to its terms of use and privacy policies, over which we have no control. In no event will we be responsible for any information or content within the linked site or your use of the linked site. By continuing to the linked site you agree to the foregoing.

This article is for informational purposes and reflects prevailing conditions and our judgment as of the date of this material, which are subject to change. This material 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. We consider the information in this article to be accurate, but we do not represent that it is complete or should be relied upon as the sole source of suitability for investment. Please consult with your investment, tax or legal adviser regarding your individual circumstances prior to investing.

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. Preferred securities may be rated below investment-grade or may be unrated.  Below-investment-grade securities or equivalent unrated securities generally involved greater volatility of price and risk of loss of income and principal, and may be more susceptible to real or perceived adverse economic or competitive industry conditions than higher-grade securities.

Risks associated with preferred securities differ from risks inherent with other investments. In particular, in the event of bankruptcy, a company’s preferred securities are senior to common stock but subordinated to all other types of corporate debt.  Throughout this presentation we will make comparisons of preferred securities to corporate bonds, municipal bonds and 10-Year Treasury bonds.  It is important to note that corporate bonds sit higher in the capital structure than preferred securities, and therefore in the event of bankruptcy will be senior to the preferred securities.  Municipal bonds are issued and backed by state and local governments and their agencies, and the interest from municipal securities is often free from both state and local income taxes.  10-Year Treasury bonds are issued by the U.S. government and are generally considered the safest of all bonds since they're backed by the full faith and credit of the U.S. government as to timely payment of principal and interest.

Contingent capital securities (sometimes referred to as “CoCos”) are debt or preferred securities with loss absorption characteristics built into the terms of the security, for example a mandatory conversion into common stock of the issuer under certain circumstances, such as the issuer’s capital ratio falling below a certain level. Since the common stock of the issuer may not pay a dividend, investors in these instruments could experience a reduced income rate, potentially to zero, and conversion would deepen the subordination of the investor, hence worsening the investor’s standing in a bankruptcy. Some CoCos provide for a reduction in the value or principal amount of the security under such circumstances. In addition, most CoCos are considered to be high yield or “junk” securities and are therefore subject to the risks of investing in below investment-grade securities.

Duration Risk.  Duration is a mathematical calculation of the average life of a fixed-income or preferred security that serves as a measure of the security’s price risk to changes in interest rates (or yields). Securities with longer durations tend to be more sensitive to interest rate (or yield) changes than securities with shorter durations. Duration differs from maturity in that it considers potential changes to interest rates, and a security’s coupon payments, yield, price and par value and call features, in addition to the amount of time until the security matures. Various techniques may be used to shorten or lengthen the Fund’s duration. The duration of a security will be expected to change over time with changes in market factors and time to maturity.

Risks of Investing in Closed-End Funds.  Risks associated with investing in closed-end funds generally include market risk, leverage risk, risk of anti-takeover provisions and non-diversification. In addition, shares of many closed-end funds frequently trade at a discount from their net asset value.

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.

Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. You can obtain the fund’s most recent periodic reports, when available, and other regulatory filings by contacting your financial advisor or visiting cohenandsteers.com. These reports and other filings can also be found on the Securities and Exchange Commission’s EDGAR Database. You should read these reports and other filings carefully before investing.

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 UK Limited is authorized and regulated by the Financial Conduct Authority (FRN 458459).

Cohen & Steers Japan, LLC, is a registered financial instruments operator (investment advisory and agency business with the Financial Services Agency of Japan and the Kanto Local Finance Bureau No. 2857) and is a member of the Japan Investment Advisers Association.

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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.

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