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Cohen & Steers Unveils New SICAV Fund

Cohen & Steers, Inc., a prominent investment manager, has officially launched the Cohen & Steers SICAV Short Duration Preferred Income Fund as announced on March 3, 2025. This new fund joins the existing Cohen & Steers SICAV Preferred Income Fund, which has been serving UCITS investors since its inception in 2017. As the financial landscape evolves, this launch reflects the firm’s commitment to innovate within the preferred securities market.

Preferred securities are noteworthy for their unique characteristics, often providing high yields that can be an attractive option for investors. These instruments operate similarly to bonds, offering a fixed or variable rate of income, while also positioning themselves as an intermediate asset class—lying between common stock and senior debt within a company's capital structure. Typically issued by large firms such as banks, insurance companies, and utilities, preferreds can afford portfolio diversification due to their lower correlation with other fixed income investments.

Elaine Zaharis-Nikas, the Head of Fixed Income and Preferred Securities at Cohen & Steers, emphasized the potential within the $1.2 trillion preferred securities market. Highlighting favourable fundamentals including an uptick in new issuances, Zaharis-Nikas is optimistic about the return prospects from preferreds, especially as changes in rating methodologies potentially widen the market with new investments from non-financial firms.

The Cohen & Steers SICAV Short Duration Preferred Income Fund, designed to furnish investors with substantial current income while prioritizing capital preservation, focuses primarily on investment-grade, institutional preferreds. It features a target duration of less than three years—potentially adjustable based on market fluctuations—which assists in mitigating interest rate sensitivity while managing associated volatility. The fund is expertly managed by Zaharis-Nikas alongside portfolio managers Jerry Dorost and Robert Kastoff.

David Conway, head of International Wholesale Distribution, added that in an era where high-quality income generation is imperative, the new fund offers a diverse range of institutional preferred securities. Selling points include both long-term total return prospects and resilience in income generation.

Cohen & Steers has established itself as a leader in managing preferred securities, with approximately $18.3 billion presently under management in this asset class since it began investing in preferreds in 2003. The firm's renowned expertise provides a strong foundation for the new fund's strategy, particularly in navigating the intricacies of the global preferred securities market. Investors seeking more information about the Cohen & Steers SICAV Short Duration Preferred Income Fund can visit their official website for resources, including comprehensive fund details and guidelines.

On another note, the sophisticated approach taken by Cohen & Steers reiterates the growing importance of understanding consumer needs and market demands in developing investment strategies. With changing regulations and market dynamics, attractive investment opportunities persist, making this fund a judicious option for discerning investors. As always, potential investors are encouraged to consult the relevant documentation, including a detailed prospectus and key investor information before committing to any investment decisions.

For more details, please refer to the official Cohen & Steers website here for the fund specifics and updates about the evolving market landscape associated with preferred securities.