WHY COHEN & STEERS

Experienced team

Team leaders have worked together for 20+ years managing preferred securities across various interest rate and credit cycles

Proprietary investment process

Includes extensive research leveraging a 55-member investment team that covers real estate, infrastructure, commodities and natural resource equities

Global reach with local knowledge

Experienced analysts and traders in the key markets including New York, London and Hong Kong offer local knowledge and real-time decision making

WHY PREFERRED SECURITIES

Income potential

Preferred securities tend to offer higher yields than similarly rated bonds

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Large institutional investment universe

We seek to add value by providing access to the $1 trillion, over-the-counter, preferred securities market

Diversification with common stocks and bonds

Preferred securities may offer a low correlation of returns with other areas of the stock and bonds markets

The Cohen & Steers Low Duration Preferred Securities Strategy offers the potential for attractive income and capital preservation, accessing the full preferred securities universe while managing long-term credit and interest-rate risks.

We believe income is an important component of preferred returns, and it is the primary focus of our investment strategy. While maintaining a high income rate, we seek to dampen the effects of credit and interest rate risks via superior security selection and active management. We evaluate securities and our portfolio from the standpoints of potential volatility and seek the best risk-adjusted mix.

As more investors turn to preferred securities for higher yields, many are limiting their selections to ETFs or investment-grade $25 par securities. A different approach is through an active manager with the skills and resources to utilize the entire preferred securities market.

FEATURED INSIGHT

A primer on investing in preferred securities

At a time of scarce yields and growing tax challenges, preferred securities may enhance after-tax income and return potential, while broadening diversification with other fixed income investments.

September 2021 | 3 mins

WHY INVEST WITH US

Delivering value to our clients

As an industry leader in real assets and alternative income, Cohen & Steers is focused on delivering superior risk-adjusted returns and income. Our global footprint gives us access to a wide range of institutional securities, including nonregistered transactions involving non-U.S. issuers that are placed exclusively outside the United States. Together, our experience and global capabilities provide the insight and versatility to adapt to changing economic environments and opportunities.

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PORTFOLIO MANAGEMENT

An experienced team

Elaine Zaharis-Nikas, CFA

Head of Fixed Income and Preferred Securities

27 years of experience

Jerry Dorost, CFA

Portfolio Manager, Fixed Income and Preferred Securities

21 years of experience

Robert Kastoff, CFA

Portfolio Manager, Fixed Income and Preferred Securities

16 years of experience

Raquel McLean, CFA

Portfolio Manager, Fixed Income and Preferred Securities

17 years of experience

+2 analysts and associates

PORTFOLIO SPECIALIST GROUP

Supporting our investment team and clients

Brian Cordes, CAIA

Head of Portfolio Specialist Group

26 years of experience

Allie Quine, CFA

Portfolio Specialist

10 years of experience

Preferred securities have historically offered the highest yields in the investment-grade market and regulatory drivers are continuing to improve issuer fundamentals and issuer quality.

We believe that research and a disciplined investment process can add significant alpha to preferred security returns because preferreds are a complex, underfollowed fixed income asset class.

We evaluate securities and our portfolio from the standpoint of potential volatility and seek the best risk-adjusted mix.

Our commitment to investment excellence is built on a culture of continuous improvement, which includes our approach to integrating environmental, social and governance factors.

Our proprietary approach to integration and engagement, combined with the framework established in the Principles for Responsible Investment Initiative (a United Nations-backed initiative focused on ESG issues to which we are a signatory), helps promote transparency and enhances our ability to deliver more consistent, attractive risk-adjusted returns.

APPROACH

Our investment process

We utilize various model-based valuation techniques to search for value within the preferred securities universe, which comprises more than 1,000 securities.

Fundamental research
Our fundamental analysis of industry sectors, issuers and individual issues enables us to make decisions regarding relative value. We employ traditional credit metrics, assess companies’ more subjective characteristics (such as management profit incentives) and place great emphasis on industry and regulatory trends.

Macro-overlay
Our views on the likely direction of interest rates and credit spreads, together with historical assessments of the broad market’s valuation, help us set portfolio direction and discern value.

Portfolio construction
Important portfolio construction goals include overall portfolio liquidity and diversification. We pay close attention to the impact of our investment execution and to potential exit requirements.

Active management
Although our models and valuation process results identify the relative value of the securities we cover, changes in our macro views or fundamental credit opinions can drive sell decisions, as can risk management.

Five reasons to consider preferred securities if you own municipal bonds

Five reasons to consider preferred securities if you own municipal bonds

November 2024 | 11 mins

With many investors feeling the sting of taxes, municipal bonds aren’t the only option for tax-advantaged income. Preferred securities currently offer among the highest after-tax yields in fixed income, regardless of tax bracket.

3 Reasons to own preferred securities today

3 Reasons to own preferred securities today

November 2024 | 5 mins

We believe an exceptional buying opportunity for preferred securities may exist today.

Preferred securities call alert

Preferred securities call alert—$19.3 billion reinvestment opportunity

September 2024 | 2 mins

Investors are facing new challenges as many of their single-issued preferred securities may be subject to call—including some that are trading above par and could lose value. Now may be the time to look beyond single issues to the added value of an actively managed portfolio.

Moody’s methodology shift reshapes preferreds market

Moody’s methodology shift reshapes preferreds market

September 2024 | 4 mins

Moody's methodology change has led to increased issuance of hybrid securities, creating opportunities for investors with attractive yields, reduced extension risk, and greater diversification in the preferred securities market.

Capital Market Assumptions

Capital Market Assumptions: Expectations for the next 10 years amid a generational change for markets

June 2024 | 22 mins

We expect higher fixed income and real asset returns alongside lower U.S. equity returns for the next decade.

What recent call and issuance activity say about preferreds

What recent call and issuance activity say about preferreds

May 2024 | 12 mins

An evolving market presents risks as well as opportunities for investors in exchange-traded preferred securities.

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We’d be happy to answer questions about our investment solutions or any corporate-related inquiries.