UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-21668
Cohen & Steers Alternative Income Fund, Inc.
(Exact name of registrant as specified in charter)
280 Park Avenue, New York, NY 10017
(Address of principal executive offices) (Zip code)
Dana A. DeVivo
Cohen & Steers Capital Management, Inc.
280 Park Avenue
New York, New York 10017
(Name and address of agent for service)
Registrant’s telephone number, including area code: (212) 832-3232
Date of fiscal year end: October 31
Date of reporting period: April 30, 2022
Item 1. Reports to Stockholders.
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
To Our Shareholders:
We would like to share with you our report for the six months ended April 30, 2022. The total returns for Cohen & Steers Alternative Income Fund, Inc. (the Fund) and its comparative benchmarks were:
Six Months Ended April 30, 2022 | ||||
Cohen & Steers Alternative Income Fund: | ||||
Class A | –2.99 | % | ||
Class C | –3.33 | % | ||
Class I | –2.81 | % | ||
Class R | –3.06 | % | ||
Class Z | –2.81 | % | ||
Blended Benchmarka | –4.75 | % | ||
S&P 500 Indexa | –9.65 | % |
The performance data quoted represent past performance. Past performance is no guarantee of future results. The investment return and the principal value of an investment will fluctuate and shares, if redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Current total returns of the Fund can be obtained by visiting our website at cohenandsteers.com. All share class returns assume the reinvestment of all dividends and distributions at net asset value (NAV). Fund performance figures reflect fee waivers and/or expense reimbursements, without which the performance would have been lower. Performance quoted does not reflect the deduction of the maximum 4.50% initial sales charge on Class A shares or the 1.00% maximum contingent deferred sales charge on Class C shares. The 1.00% maximum contingent deferred sales charge on Class C shares applies if redemption occurs on or before the one year anniversary date of their purchase. If such charges were included, returns would have been lower. Index performance does not reflect the deduction of any fees, taxes or expenses. An investor cannot invest directly in an index. Performance figures for periods shorter than one year are not annualized.
The Fund makes regular monthly distributions at a level rate (the Policy). Distributions paid by the Fund are subject to recharacterization for tax purposes and are taxable up to the amount of the Fund’s investment company taxable income and net realized gains. As a result of the Policy, the Fund may pay distributions in excess of the Fund’s investment company taxable income and net realized gains. This excess would be a return of capital distributed from the Fund’s assets. Distributions of capital decrease the Fund’s total assets and, therefore, could have the effect of increasing the Fund’s expense ratio. In addition, in order to make these distributions, the Fund may have to sell portfolio securities at a less than opportune time.
a | For benchmark descriptions, see page 6. |
1
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
Market Review
The six-month period ended April 30, 2022 was generally difficult for financial markets amid concerns about inflation and interest rates. As the global economy continued to recover from pandemic-related weakness, a combination of tight labor markets, strong consumer demand and supply chain bottlenecks pushed inflation to a 40-year high. The yield on the 10-year U.S. Treasury note rose sharply higher, from 1.6% at the start of the period to 2.9% at period end. In March 2022, the U.S. Federal Reserve raised its fed funds rate for the first time since December 2018 and affirmed its commitment to reining in inflation. The European Central Bank indicated it would begin to tighten policy in 2022 as well, but signaled it would remain flexible in light of the potential impact of the war in Ukraine on Europe’s economy.
In this environment, the asset classes targeted by the Fund had mixed performance. Preferreds had a significant absolute decline but held up somewhat better than more interest rate sensitive securities such as Treasuries and investment-grade corporate bonds. Global real estate stocks had a lesser decline and significantly outperformed broader stocks. Global infrastructure stocks had a modest gain for the six months.
Fund Performance
The Fund had a negative total return in the period but outperformed its blended benchmark.
Preferred Securities
The macro headwinds rattling financial markets notwithstanding, fundamentals for issuers of preferreds remained generally solid. Banks, which are a substantial issuer of preferreds, reported earnings that continued to be encouraging from a credit perspective. Positive factors reported by banks included continued strong credit quality, loan growth, expanding net interest margins and better-than-expected trading activity revenues. And despite increased economic uncertainty, loan credit quality remained strong and bank management teams sounded upbeat on consumer and corporate balance sheets. Capital ratios declined modestly as excess capital was returned to shareholders in the form of large stock buybacks. Overall, however, banks’ capital ratios remained at high levels and well above regulatory minimums in the U.S. as well as Europe.
Bank preferreds slightly outperformed the preferreds component of the blended benchmark in the period. The Fund’s allocation to bank preferreds contributed to relative performance, in part due to our underweights or non-investment in certain longer-dated securities that had sizable declines amid rising bond yields.
The insurance sector also declined (in line with bank preferreds), although property & casualty insurance companies saw significant premium growth with the recovering economy and life insurers benefited from a declining overall COVID impact and from solid results in their investment portfolios. Security selection in insurance companies aided relative performance. Elsewhere, security selection in real estate helped performance, while security selection in the telecommunications sector detracted.
2
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
Global Real Estate
Global real estate stocks struggled in absolute terms but held up significantly better than broader stocks, reflecting an only modest decline in the U.S., which accounts for about 60% of the blended
benchmark’s real estate component. Several U.S. property sectors had gains, including self storage and industrial landlords, which continued to benefit from strong fundamentals. Notable underperformers included Germany, where residential companies were hindered by rising interest rates. Stock selection in the Fund’s real estate allocation helped relative performance, as outperformance in the Fund’s U.S., Sweden and Japan holdings more than countered underperformance in Hong Kong and Australia.
Global Listed Infrastructure
Infrastructure companies advanced in the period, with most sectors posting gains. Solid performers included midstream energy amid surging energy commodity prices, partially due to supply disruptions in Eastern Europe. Positive earnings reports and the prospect of increasing throughput volumes also supported the sector. Certain defensive sectors such as gas distribution companies also outperformed, as a number of companies posted strong earnings and value stocks were generally in favor. The communications sector declined, with certain higher-growth/higher-multiple stocks underperforming. Stock selection in infrastructure contributed to relative performance, due in part to outperformance in the Fund’s marine ports, gas distribution and midstream energy holdings; however, our underweight in infrastructure partly offset the effect of relatively favorable stock selection in the asset class.
Alternative Income
Outside of these three main allocations, the Fund opportunistically invested in several out-of-benchmark stocks, including certain natural resource companies and master limited partnerships. These holdings had a collective gain in the period and contributed to the Fund’s relative performance.
Impact of Derivatives on Fund Performance
The Fund used derivatives in the form of forward foreign currency exchange contracts for managing currency risk on certain Fund positions denominated in foreign currencies. The currency exchange contracts contributed to the Fund’s total return for the six-month period ended April 30, 2022.
The Fund also used “swaptions,” which are options to enter into interest-rate swap contracts with the intention of managing interest-rate risk. In addition, the Fund used options in the form of calls written on a portion of the portfolio’s holdings. The swaptions and options did not have a material effect on the Fund’s total return for the six-month period ended April 30, 2022.
3
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
Sincerely,
JON CHEIGH | VINCENT L. CHILDERS | |
Portfolio Manager | Portfolio Manager |
BEN MORTON | WILLIAM F. SCAPELL | |
Portfolio Manager | Portfolio Manager |
ELAINE ZAHARIS-NIKAS |
Portfolio Manager |
The views and opinions in the preceding commentary are subject to change without notice and are as of the date of the report. There is no guarantee that any market forecast set forth in the commentary will be realized. This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice and is not intended to predict or depict performance of any investment.
Visit Cohen & Steers online at cohenandsteers.com
For more information about the Cohen & Steers family of mutual funds, visit cohenandsteers.com. Here you will find fund net asset values, fund fact sheets and portfolio highlights, as well as educational resources and timely market updates.
Our website also provides comprehensive information about Cohen & Steers, including our most recent press releases, profiles of our senior investment professionals and their investment approach to each asset class. The Cohen & Steers family of mutual funds invests in major real asset categories including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions.
4
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
Performance Review (Unaudited)
Average Annual Total Returns—For Periods Ended April 30, 2022
Class A Shares | Class C Shares | Class I Shares | Class R Shares | Class Z Shares | ||||||||||||||||
1 Year (with sales charge) | –2.18 | %a | 0.69 | %b | — | — | — | |||||||||||||
1 Year (without sales charge) | 2.43 | % | 1.69 | % | 2.69 | % | 2.19 | % | 2.69 | % | ||||||||||
5 Years (with sales charge) | 5.13 | %a | 5.41 | % | — | — | — | |||||||||||||
5 Years (without sales charge) | 6.10 | % | 5.41 | % | 6.46 | % | 5.94 | % | 6.46 | % | ||||||||||
10 Years (with sales charge) | 8.45 | %a | 8.24 | % | — | — | — | |||||||||||||
10 Years (without sales charge) | 8.95 | % | 8.24 | % | 9.33 | % | — | — | ||||||||||||
Since Inception (with sales charge)c | 6.45 | %a | 6.05 | % | — | — | — | |||||||||||||
Since Inception (without sales charge)c | 6.74 | % | 6.05 | % | 7.12 | % | 6.41 | % | 6.94 | % |
The Fund changed its investment objectives and principal investment strategies on July 1, 2019 and further modified the investment objectives, principal investment strategies and benchmark effective after the close of business on April 30, 2021. The performance above reflects returns achieved pursuant to different investment objectives and principal investment strategies than the investment objectives and strategies currently employed by the Fund. If the Fund’s current strategies had been in place prior to July 1, 2019 and April 30, 2021, as applicable, results shown would have been different.
The performance data quoted represent past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate and shares, if redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance information current to the most recent month end can be obtained by visiting our website at cohenandsteers.com. All share class returns assume the reinvestment of all dividends and distributions at NAV. The performance table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. During the periods presented above, the investment advisor waived fees and/or reimbursed expenses. Without this arrangement, performance would have been lower.
The annualized gross and net expense ratios, respectively, for each class of shares as disclosed in the March 1, 2022 prospectus, as supplemented on March 24, 2022, were as follows: Class A—1.67% and 1.01%; Class C—2.32% and 1.66%; Class I—1.38% and 0.66%; Class R—1.82% and 1.16%; and Class Z—1.32% and 0.66%. Through June 30, 2023, the investment advisor has contractually agreed to waive its fee and/or reimburse expenses so that the Fund’s total annual operating expenses (excluding acquired fund fees and expenses, taxes and extraordinary expenses) do not exceed 1.00% for Class A shares, 1.65% for Class C shares, 0.65% for Class I shares, 1.15% for Class R shares and 0.65% for Class Z shares. This contractual agreement can only be amended or terminated by agreement of the Fund’s Board of Directors and the investment advisor and will terminate automatically in the event of termination of the investment advisory agreement between the investment advisor and the Fund.
a | Reflects a 4.50% front-end sales charge. |
b | Reflects a contingent deferred sales charge of 1.00%. |
c | Inception date of August 31, 2005 for Class A, C and I shares and October 1, 2014 for Class R and Z shares. |
5
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
Performance Review (Unaudited)—(Continued)
Benchmark Descriptions
The Fund changed its investment objectives and principal investment strategies on July 1, 2019 and further modified the investment objectives, principal investment strategies and benchmark effective after the close of business on April 30, 2021. The Blended Benchmark consists of 50% Preferred Blended Benchmark (consists of 60% ICE BofA US IG Institutional Capital Securities Index, 20% ICE BofA Core Fixed Rate Preferred Securities Index and 20% Bloomberg Developed Market USD Contingent Capital Index), 30% Dow Jones Brookfield Global Infrastructure Index, and 20% FTSE EPRA Nareit Developed Real Estate Index (Net). The FTSE EPRA Nareit Developed Real Estate Index (Net) is an unmanaged market-capitalization-weighted total-return index, which consists of publicly traded equity REITs and listed property companies from developed markets and is net of dividend withholding taxes. The Dow Jones Brookfield Global Infrastructure Index is a float-adjusted market-capitalization-weighted index that measures performance of globally domiciled companies that derive more than 70% of their cash flows from infrastructure lines of business. The ICE BofA US IG Institutional Capital Securities Index tracks the performance of US dollar denominated investment grade hybrid capital corporate and preferred securities publicly issued in the US domestic market. The ICE BofA Core Fixed Rate Preferred Securities Index tracks the performance of fixed-rate US dollar-denominated preferred securities issued in the US domestic market, excluding $1000 par securities. The Bloomberg 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. The S&P 500 Index is an unmanaged index of 500 large-capitalization stocks that is frequently used as a general measure of U.S. stock market performance.
6
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
Expense Example (Unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and (2) ongoing costs including investment advisory fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2021—April 30, 2022.
Actual Expenses
The first line of the following table provides information about actual account values and expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the following table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing cost of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads). Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
7
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
Expense Example (Unaudited)—(Continued)
Beginning Account Value November 1, 2021 | Ending Account Value April 30, 2022 | Expenses Paid During Perioda November 1, 2021— April 30, 2022 | ||||||||||
Class A |
| |||||||||||
Actual (–2.99% return) | $ | 1,000.00 | $ | 970.10 | $ | 4.88 | ||||||
Hypothetical (5% annual return before expenses) | $ | 1,000.00 | $ | 1,019.84 | $ | 5.01 | ||||||
Class C |
| |||||||||||
Actual (–3.33% return) | $ | 1,000.00 | $ | 966.70 | $ | 8.05 | ||||||
Hypothetical (5% annual return before expenses) | $ | 1,000.00 | $ | 1,016.61 | $ | 8.25 | ||||||
Class I |
| |||||||||||
Actual (–2.81% return) | $ | 1,000.00 | $ | 971.90 | $ | 3.18 | ||||||
Hypothetical (5% annual return before expenses) | $ | 1,000.00 | $ | 1,021.57 | $ | 3.26 | ||||||
Class R |
| |||||||||||
Actual (–3.06% return) | $ | 1,000.00 | $ | 969.40 | $ | 5.62 | ||||||
Hypothetical (5% annual return before expenses) | $ | 1,000.00 | $ | 1,019.09 | $ | 5.76 | ||||||
Class Z |
| |||||||||||
Actual (–2.81% return) | $ | 1,000.00 | $ | 971.90 | $ | 3.18 | ||||||
Hypothetical (5% annual return before expenses) | $ | 1,000.00 | $ | 1,021.57 | $ | 3.26 |
a | Expenses are equal to the Fund’s Class A, Class C, Class I, Class R and Class Z annualized net expense ratios of 1.00%, 1.65%, 0.65%, 1.15% and 0.65%, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
8
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
April 30, 2022
Top Ten Holdingsa
(Unaudited)
Security | Value | % of Net Assets | ||||||
American Tower Corp. | $ | 2,127,966 | 2.7 | |||||
Enbridge, Inc. (Canada) | 1,977,079 | 2.5 | ||||||
Crown Castle International Corp. | 1,260,910 | 1.6 | ||||||
Sempra Energy | 1,132,586 | 1.5 | ||||||
Vinci SA (France) | 974,414 | 1.2 | ||||||
TC Energy Corp. (Canada) | 967,903 | 1.2 | ||||||
SBA Communications Corp. | 941,362 | 1.2 | ||||||
National Grid PLC (United Kingdom) | 930,343 | 1.2 | ||||||
Cheniere Energy, Inc. | 903,816 | 1.2 | ||||||
Agnico Eagle Mines Ltd. (Canada) | 713,776 | 0.9 |
a | Top ten holdings (excluding short-term investments and derivative instruments) are determined on the basis of the value of individual securities held. The Fund may also hold positions in other securities issued by the companies listed above. See the Schedule of Investments for additional details on such other positions. |
Strategy Breakdownb
(Unaudited)
b | The strategy breakdown is expressed as a percentage of the Fund’s total long-term investments and excludes derivative instruments. |
9
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
April 30, 2022 (Unaudited)
Shares | Value | |||||||||||
CLOSED-END FUNDS | 1.3% | |||||||||||
MASTER LIMITED PARTNERSHIPS | 0.6% | |||||||||||
Kayne Anderson MLP Investment Company |
| 48,910 | $ | 440,190 | ||||||||
|
| |||||||||||
U.S. GENERAL EQUITY | 0.7% | |||||||||||
Adams Diversified Equity Fund, Inc. |
| 34,010 | 571,708 | |||||||||
|
| |||||||||||
TOTAL CLOSED-END FUNDS |
| 1,011,898 | ||||||||||
|
| |||||||||||
COMMON STOCK | 48.8% | |||||||||||
AIRPORTS—FOREIGN | 0.6% | |||||||||||
Aena SME SA, 144A (Spain)a,b |
| 2,045 | 290,205 | |||||||||
Auckland International Airport Ltd. (New Zealand)b |
| 33,452 | 168,029 | |||||||||
|
| |||||||||||
458,234 | ||||||||||||
|
| |||||||||||
COMMUNICATIONS | 6.5% | |||||||||||
TOWERS | 5.5% | |||||||||||
American Tower Corp. |
| 8,829 | 2,127,966 | |||||||||
Crown Castle International Corp. |
| 6,808 | 1,260,910 | |||||||||
SBA Communications Corp. |
| 2,712 | 941,362 | |||||||||
|
| |||||||||||
4,330,238 | ||||||||||||
|
| |||||||||||
TOWERS—FOREIGN | 0.9% | |||||||||||
Cellnex Telecom SA, 144A (Spain)a |
| 14,823 | 690,904 | |||||||||
|
| |||||||||||
SATELLITES—FOREIGN | 0.1% | |||||||||||
SES SA (Luxembourg) |
| 12,135 | 108,578 | |||||||||
|
| |||||||||||
TOTAL COMMUNICATIONS |
| 5,129,720 | ||||||||||
|
| |||||||||||
CONSUMER—NON-CYCLICAL—AGRICULTURE | 0.4% | |||||||||||
Bunge Ltd. |
| 2,900 | 328,048 | |||||||||
|
| |||||||||||
ELECTRIC | 2.4% | |||||||||||
CenterPoint Energy, Inc. |
| 16,161 | 494,688 | |||||||||
Evergy, Inc. |
| 3,071 | 208,367 | |||||||||
Eversource Energy |
| 5,063 | 442,506 | |||||||||
PG&E Corp.b |
| 16,803 | 212,558 | |||||||||
PNM Resources, Inc. |
| 6,685 | 311,922 | |||||||||
Portland General Electric Co. |
| 4,171 | 197,414 | |||||||||
|
| |||||||||||
1,867,455 | ||||||||||||
|
|
See accompanying notes to financial statements.
10
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Shares | Value | |||||||||||
ELECTRIC—FOREIGN | 1.5% | |||||||||||
Hydro One Ltd., 144A (Canada)a |
| 8,804 | $ | 238,013 | ||||||||
National Grid PLC (United Kingdom) |
| 62,620 | 930,343 | |||||||||
|
| |||||||||||
1,168,356 | ||||||||||||
|
| |||||||||||
ENERGY | 2.0% | |||||||||||
GAS—DISTRIBUTION—FOREIGN | 0.8% | |||||||||||
Enn Energy Holdings Ltd. (H shares) (China) |
| 28,200 | 377,741 | |||||||||
Snam SpA (Italy) |
| 36,960 | 202,711 | |||||||||
|
| |||||||||||
580,452 | ||||||||||||
|
| |||||||||||
OIL & GAS | 0.5% | |||||||||||
Hess Corp. |
| 3,624 | 373,526 | |||||||||
|
| |||||||||||
OIL & GAS—FOREIGN | 0.7% | |||||||||||
Suncor Energy, Inc. (Canada) |
| 15,922 | 572,356 | |||||||||
|
| |||||||||||
TOTAL ENERGY |
| 1,526,334 | ||||||||||
|
| |||||||||||
ENVIRONMENTAL SERVICES | 0.3% | |||||||||||
Waste Management, Inc. |
| 1,433 | 235,643 | |||||||||
|
| |||||||||||
INFRASTRUCTURE—FOREIGN | 0.2% | |||||||||||
Atlas Arteria Ltd. (Australia)c |
| 30,636 | 148,832 | |||||||||
|
| |||||||||||
MARINE PORTS—FOREIGN | 0.7% | |||||||||||
China Merchants Port Holdings Co., Ltd. (H shares) (China) |
| 70,000 | 122,206 | |||||||||
COSCO SHIPPING Ports Ltd. (H shares) (China) |
| 184,000 | 131,198 | |||||||||
International Container Terminal Services, Inc. (Philippines) |
| 21,200 | 87,047 | |||||||||
Santos Brasil Participacoes SA (Brazil) |
| 149,066 | 213,772 | |||||||||
|
| |||||||||||
554,223 | ||||||||||||
|
| |||||||||||
MATERIALS | 2.6% | |||||||||||
METALS & MINING | 0.2% | |||||||||||
Alcoa Corp. |
| 2,694 | 182,653 | |||||||||
|
| |||||||||||
METALS & MINING—FOREIGN | 2.4% | |||||||||||
Agnico Eagle Mines Ltd. (Canada) |
| 12,262 | 713,776 | |||||||||
Anglo American PLC (South Africa) |
| 10,228 | 453,008 | |||||||||
BHP Group Ltd. (Australia) |
| 20,399 | 683,620 | |||||||||
|
| |||||||||||
1,850,404 | ||||||||||||
|
| |||||||||||
TOTAL MATERIALS |
| 2,033,057 | ||||||||||
|
|
See accompanying notes to financial statements.
11
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Shares | Value | |||||||||||
PIPELINES | 3.3% | |||||||||||
Cheniere Energy, Inc. |
| 6,655 | $ | 903,816 | ||||||||
DT Midstream, Inc.b |
| 7,548 | 405,705 | |||||||||
ONEOK, Inc. |
| 6,824 | 432,164 | |||||||||
Targa Resources Corp. |
| 9,505 | 697,762 | |||||||||
Williams Cos., Inc./The |
| 5,259 | 180,331 | |||||||||
|
| |||||||||||
2,619,778 | ||||||||||||
|
| |||||||||||
PIPELINES—FOREIGN | 4.8% | |||||||||||
Enbridge, Inc. (Canada) |
| 45,306 | 1,977,079 | |||||||||
Pembina Pipeline Corp. (Canada) |
| 15,982 | 604,745 | |||||||||
TC Energy Corp. (Canada) |
| 18,299 | 967,903 | |||||||||
Tidewater Renewables Ltd. (Canada)b |
| 21,678 | 209,920 | |||||||||
|
| |||||||||||
3,759,647 | ||||||||||||
|
| |||||||||||
RAILWAYS—FOREIGN | 0.7% | |||||||||||
Getlink SE (France) |
| 21,139 | 386,825 | |||||||||
West Japan Railway Co. (Japan) |
| 4,200 | 155,900 | |||||||||
|
| |||||||||||
542,725 | ||||||||||||
|
| |||||||||||
REAL ESTATE | 15.0% | |||||||||||
DATA CENTERS | 0.8% | |||||||||||
Digital Realty Trust, Inc. |
| 4,105 | 599,822 | |||||||||
Equinix, Inc. |
| 73 | 52,493 | |||||||||
|
| |||||||||||
652,315 | ||||||||||||
|
| |||||||||||
DATA CENTERS—FOREIGN | 0.2% | |||||||||||
Digital Core REIT Management Pte Ltd. (Singapore)b |
| 42,768 | 42,403 | |||||||||
NEXTDC Ltd. (Australia)b |
| 11,764 | 91,334 | |||||||||
|
| |||||||||||
133,737 | ||||||||||||
|
| |||||||||||
DIVERSIFIED—FOREIGN | 2.3% | |||||||||||
British Land Co. PLC/The (United Kingdom) |
| 12,141 | 78,205 | |||||||||
Capitaland Investment Ltd. (Singapore)b |
| 35,100 | 106,430 | |||||||||
Charter Hall Group (Australia) |
| 11,303 | 121,478 | |||||||||
CK Asset Holdings Ltd. (Hong Kong) |
| 9,500 | 64,402 | |||||||||
Dexus (Australia) |
| 14,542 | 113,698 | |||||||||
Fastighets AB Balder (Sweden)b |
| 2,562 | 126,991 | |||||||||
Hysan Development Co., Ltd. (Hong Kong) |
| 22,000 | 64,904 | |||||||||
ICADE (France) |
| 1,111 | 66,333 |
See accompanying notes to financial statements.
12
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Shares | Value | |||||||||||
Ingenia Communities Group (Australia) |
| 21,356 | $ | 70,306 | ||||||||
Merlin Properties Socimi SA (Spain) |
| 10,255 | 111,407 | |||||||||
Mitsui Fudosan Co., Ltd. (Japan) |
| 10,000 | 211,937 | |||||||||
Nomura Real Estate Holdings, Inc. (Japan) |
| 6,200 | 151,068 | |||||||||
Nomura Real Estate Master Fund, Inc. (Japan)b |
| 73 | 91,654 | |||||||||
NSI NV (Netherlands) |
| 724 | 28,413 | |||||||||
Orix JREIT, Inc. (Japan) |
| 27 | 36,497 | |||||||||
Sun Hung Kai Properties Ltd. (Hong Kong) |
| 14,500 | 166,998 | |||||||||
Tokyu Fudosan Holdings Corp. (Japan) |
| 7,900 | 41,109 | |||||||||
United Urban Investment Corp. (Japan) |
| 112 | 122,543 | |||||||||
|
| |||||||||||
1,774,373 | ||||||||||||
|
| |||||||||||
ELECTRIC—FOREIGN | 0.1% | |||||||||||
Daiwa House REIT Investment Corp. (Japan) |
| 40 | 97,360 | |||||||||
|
| |||||||||||
HEALTH CARE | 1.2% | |||||||||||
Healthcare Trust of America, Inc., Class A |
| 1,289 | 39,263 | |||||||||
Healthpeak Properties, Inc. |
| 3,134 | 102,826 | |||||||||
Ventas, Inc. |
| 2,905 | 161,373 | |||||||||
Welltower, Inc. |
| 7,155 | 649,746 | |||||||||
|
| |||||||||||
953,208 | ||||||||||||
|
| |||||||||||
HEALTH CARE—FOREIGN | 0.2% | |||||||||||
Assura PLC (United Kingdom) |
| 48,998 | 40,602 | |||||||||
HealthCo REIT (Australia) |
| 28,737 | 39,957 | |||||||||
Parkway Life Real Estate Investment Trust (Singapore) |
| 26,526 | 92,429 | |||||||||
|
| |||||||||||
172,988 | ||||||||||||
|
| |||||||||||
HOTEL | 0.5% | |||||||||||
Host Hotels & Resorts, Inc. |
| 4,507 | 91,717 | |||||||||
Sunstone Hotel Investors, Inc.b |
| 23,247 | 284,776 | |||||||||
|
| |||||||||||
376,493 | ||||||||||||
|
| |||||||||||
INDUSTRIALS | 1.5% | |||||||||||
Americold Realty Trust |
| 3,506 | 92,488 | |||||||||
Duke Realty Corp. |
| 9,984 | 546,624 | |||||||||
First Industrial Realty Trust, Inc. |
| 2,513 | 145,754 | |||||||||
Prologis, Inc. |
| 2,312 | 370,591 | |||||||||
|
| |||||||||||
1,155,457 | ||||||||||||
|
|
See accompanying notes to financial statements.
13
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Shares | Value | |||||||||||
INDUSTRIALS—FOREIGN | 1.0% | |||||||||||
Catena AB (Sweden) |
| 2,528 | $ | 132,200 | ||||||||
ESR Cayman Ltd., 144A (H shares) (China)a,b |
| 17,600 | 53,427 | |||||||||
Frasers Logistics & Commercial Trust (Singapore) |
| 99,500 | 103,615 | |||||||||
Goodman Group (Australia) |
| 4,257 | 70,853 | |||||||||
LaSalle Logiport REIT (Japan) |
| 61 | 82,527 | |||||||||
LondonMetric Property PLC (United Kingdom) |
| 8,021 | 27,108 | |||||||||
Segro PLC (United Kingdom) |
| 5,934 | 99,348 | |||||||||
Sirius Real Estate Ltd. (Germany) |
| 45,438 | 69,363 | |||||||||
Tritax Big Box REIT PLC (United Kingdom) |
| 35,019 | 106,901 | |||||||||
Urban Logistics REIT PLC (United Kingdom) |
| 22,722 | 53,429 | |||||||||
|
| |||||||||||
798,771 | ||||||||||||
|
| |||||||||||
NET LEASE | 0.4% | |||||||||||
NETSTREIT Corp. |
| 7,090 | 153,286 | |||||||||
Spirit Realty Capital, Inc. |
| 2,659 | 115,533 | |||||||||
|
| |||||||||||
268,819 | ||||||||||||
|
| |||||||||||
NET LEASE—FOREIGN | 0.1% | |||||||||||
ARGAN SA (France) |
| 799 | 93,980 | |||||||||
|
| |||||||||||
OFFICE—FOREIGN | 0.3% | |||||||||||
Daiwa Office Investment Corp. (Japan) |
| 16 | 90,580 | |||||||||
Keppel REIT (Singapore) |
| 92,400 | 80,951 | |||||||||
Workspace Group PLC (United Kingdom) |
| 4,388 | 36,721 | |||||||||
|
| |||||||||||
208,252 | ||||||||||||
|
| |||||||||||
RESIDENTIAL | 3.2% | |||||||||||
APARTMENT | 1.4% | |||||||||||
Apartment Income REIT Corp. |
| 5,482 | 269,550 | |||||||||
Camden Property Trust |
| 1,491 | 233,923 | |||||||||
Essex Property Trust, Inc. |
| 712 | 234,440 | |||||||||
Highwoods Properties, Inc. |
| 2,628 | 107,328 | |||||||||
Mid-America Apartment Communities, Inc. |
| 283 | 55,660 | |||||||||
UDR, Inc. |
| 4,382 | 233,166 | |||||||||
|
| |||||||||||
1,134,067 | ||||||||||||
|
| |||||||||||
APARTMENT—FOREIGN | 1.0% | |||||||||||
Aedifica SA (Belgium) |
| 595 | 70,527 | |||||||||
Japan Metropolitan Fund Invest (Japan) |
| 198 | 157,376 | |||||||||
Tricon Residential, Inc. (Canada) |
| 5,358 | 77,638 |
See accompanying notes to financial statements.
14
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Shares | Value | |||||||||||
UNITE Group PLC/The (United Kingdom) |
| 4,920 | $ | 69,668 | ||||||||
Vonovia SE (Germany) |
| 7,781 | 310,003 | |||||||||
Wharf Real Estate Investment Co., Ltd. (Hong Kong) |
| 13,000 | 61,263 | |||||||||
|
| |||||||||||
746,475 | ||||||||||||
|
| |||||||||||
MANUFACTURED HOME | 0.3% | |||||||||||
Sun Communities, Inc. |
| 1,353 | 237,546 | |||||||||
|
| |||||||||||
SINGLE FAMILY | 0.5% | |||||||||||
Invitation Homes, Inc. |
| 8,925 | 355,394 | |||||||||
|
| |||||||||||
TOTAL RESIDENTIAL |
| 2,473,482 | ||||||||||
|
| |||||||||||
RETAIL—FOREIGN | 0.6% | |||||||||||
CapitaLand Integrated Commercial Trust (Singapore) |
| 41,296 | 69,195 | |||||||||
Eurocommercial Properties NV (Netherlands) |
| 2,202 | 53,279 | |||||||||
Klepierre SA (France)b |
| 4,556 | 109,051 | |||||||||
Link REIT (Hong Kong) |
| 19,083 | 164,835 | |||||||||
SmartCentres Real Estate Investment Trust (Canada) |
| 4,024 | 98,012 | |||||||||
|
| |||||||||||
494,372 | ||||||||||||
|
| |||||||||||
SELF STORAGE | 1.3% | |||||||||||
CubeSmart |
| 6,031 | 286,533 | |||||||||
Extra Space Storage, Inc. |
| 1,229 | 233,510 | |||||||||
Public Storage |
| 1,390 | 516,385 | |||||||||
|
| |||||||||||
1,036,428 | ||||||||||||
|
| |||||||||||
SELF STORAGE—FOREIGN | 0.2% | |||||||||||
National Storage REIT (Australia) |
| 35,980 | 65,169 | |||||||||
Safestore Holdings PLC (United Kingdom) |
| 7,220 | 113,583 | |||||||||
|
| |||||||||||
178,752 | ||||||||||||
|
| |||||||||||
SHOPPING CENTERS | 0.9% | |||||||||||
COMMUNITY CENTER | 0.4% | |||||||||||
Kite Realty Group Trust |
| 13,732 | 306,224 | |||||||||
|
| |||||||||||
REGIONAL MALL | 0.5% | |||||||||||
Simon Property Group, Inc. |
| 3,354 | 395,772 | |||||||||
|
| |||||||||||
TOTAL SHOPPING CENTERS |
| 701,996 | ||||||||||
|
| |||||||||||
SPECIALTY | 0.2% | |||||||||||
Lamar Advertising Co., Class A |
| 1,043 | 115,158 | |||||||||
|
| |||||||||||
TOTAL REAL ESTATE |
| 11,685,941 | ||||||||||
|
|
See accompanying notes to financial statements.
15
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Shares | Value | |||||||||||
RENEWABLE ENERGY | 0.2% | |||||||||||
Clearway Energy, Inc. |
| 3,777 | $ | 115,312 | ||||||||
|
| |||||||||||
TOLL ROADS—FOREIGN | 2.1% | |||||||||||
Atlantia SpA (Italy)b |
| 13,057 | 311,482 | |||||||||
Transurban Group (Australia)c |
| 32,034 | 321,673 | |||||||||
Vinci SA (France) |
| 10,042 | 974,414 | |||||||||
|
| |||||||||||
1,607,569 | ||||||||||||
|
| |||||||||||
UTILITIES | 5.5% | |||||||||||
ELECTRIC | 2.3% | |||||||||||
Exelon Corp. |
| 5,152 | 241,011 | |||||||||
NextEra Energy, Inc. |
| 2,613 | 185,575 | |||||||||
Sempra Energy |
| 7,019 | 1,132,586 | |||||||||
WEC Energy Group, Inc. |
| 2,424 | 242,521 | |||||||||
|
| |||||||||||
1,801,693 | ||||||||||||
|
| |||||||||||
ELECTRIC—FOREIGN | 0.3% | |||||||||||
E.ON SE (Germany) |
| 21,437 | 223,094 | |||||||||
|
| |||||||||||
GAS—DISTRIBUTION | 1.4% | |||||||||||
NiSource, Inc. |
| 17,532 | 510,532 | |||||||||
Southwest Gas Holdings, Inc. |
| 3,898 | 343,453 | |||||||||
Spire, Inc. |
| 3,054 | 222,178 | |||||||||
|
| |||||||||||
1,076,163 | ||||||||||||
|
| |||||||||||
GAS—DISTRIBUTION—FOREIGN | 0.4% | |||||||||||
AltaGas Ltd. (Canada) |
| 10,503 | 240,204 | |||||||||
Hong Kong and China Gas Co., Ltd. (Hong Kong) |
| 95,000 | 104,777 | |||||||||
|
| |||||||||||
344,981 | ||||||||||||
|
| |||||||||||
WATER | 0.5% | |||||||||||
American Water Works Co., Inc. |
| 2,607 | 401,687 | |||||||||
|
| |||||||||||
WATER—FOREIGN | 0.6% | |||||||||||
Pennon Group PLC (United Kingdom) |
| 32,821 | 456,089 | |||||||||
|
| |||||||||||
TOTAL UTILITIES |
| 4,303,707 | ||||||||||
|
| |||||||||||
TOTAL COMMON STOCK |
| 38,084,581 | ||||||||||
|
|
See accompanying notes to financial statements.
16
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Shares | Value | |||||||||||
MASTER LIMITED PARTNERSHIPSAND RELATED COMPANIES—PIPELINES—C-CORP | 0.2% | |||||||||||
NextDecade Corp.b |
| 30,679 | $ | 171,495 | ||||||||
|
| |||||||||||
TOTAL MASTER LIMITED PARTNERSHIPSAND RELATED COMPANIES |
| 171,495 | ||||||||||
|
| |||||||||||
PREFERRED SECURITIES—$25 PAR VALUE | 6.1% | |||||||||||
BANKS | 0.9% | |||||||||||
Bank of America Corp., 6.00%, Series GGd |
| 4,415 | 110,463 | |||||||||
Dime Community Bancshares, Inc., 5.50%d |
| 5,287 | 116,843 | |||||||||
Fifth Third Bancorp, 6.625% to 12/31/23, Series Id,e |
| 3,600 | 93,204 | |||||||||
Goldman Sachs Group, Inc./The, 5.50% to 5/10/23, Series Jd,e |
| 6,000 | 152,640 | |||||||||
JPMorgan Chase & Co., 6.00%, Series EEd |
| 3,700 | 92,685 | |||||||||
Signature Bank/New York NY, 5.00%, Series ad |
| 2,483 | 47,500 | |||||||||
Western Alliance Bancorp, 4.25% to 9/30/26, Series Ad,e |
| 2,998 | 65,866 | |||||||||
|
| |||||||||||
679,201 | ||||||||||||
|
| |||||||||||
ELECTRIC | 0.3% | |||||||||||
CMS Energy Corp., 5.875%, due 10/15/78 |
| 1,746 | 43,930 | |||||||||
CMS Energy Corp., 5.875%, due 3/1/79 |
| 1,727 | 43,261 | |||||||||
SCE Trust V, 5.45% to 3/15/26, Series K (TruPS)d,e |
| 6,561 | 156,611 | |||||||||
|
| |||||||||||
243,802 | ||||||||||||
|
| |||||||||||
ELECTRIC—FOREIGN | 0.3% | |||||||||||
Brookfield Infrastructure Finance ULC, 5.00%, due 5/24/81 (Canada) |
| 1,861 | 36,196 | |||||||||
Brookfield Infrastructure Partners LP, 5.125%, Series 13 (Canada)d |
| 9,106 | 177,020 | |||||||||
|
| |||||||||||
213,216 | ||||||||||||
|
| |||||||||||
FINANCIAL | 1.0% | |||||||||||
DIVERSIFIED FINANCIAL SERVICES | 0.6% | |||||||||||
Carlyle Finance LLC, 4.625%, due 5/15/61 |
| 2,551 | 47,857 | |||||||||
Federal Agricultural Mortgage Corp., 4.875%, Series Gd |
| 3,660 | 74,042 | |||||||||
Oaktree Capital Group LLC, 6.55%, Series Bd |
| 7,222 | 180,189 | |||||||||
Synchrony Financial, 5.625%, Series Ad |
| 8,061 | 166,701 | |||||||||
|
| |||||||||||
468,789 | ||||||||||||
|
| |||||||||||
INVESTMENT ADVISORY SERVICES | 0.1% | |||||||||||
Affiliated Managers Group Inc, 5.875%, due 3/30/59 |
| 3,660 | 89,267 | |||||||||
|
|
See accompanying notes to financial statements.
17
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Shares | Value | |||||||||||
INVESTMENT BANKER/BROKER | 0.3% | |||||||||||
Morgan Stanley, 6.375% to 10/15/24, Series Id,e |
| 7,200 | $ | 187,416 | ||||||||
|
| |||||||||||
TOTAL FINANCIAL |
| 745,472 | ||||||||||
|
| |||||||||||
INDUSTRIALS | 0.1% | |||||||||||
CHS, Inc., 7.10% to 3/31/24, Series 2d,e |
| 1,486 | 39,305 | |||||||||
CHS, Inc., 6.75% to 9/30/24, Series 3d,e |
| 2,930 | 77,586 | |||||||||
|
| |||||||||||
116,891 | ||||||||||||
|
| |||||||||||
INSURANCE | 1.2% | |||||||||||
LIFE/HEALTH INSURANCE | 0.7% | |||||||||||
Athene Holding Ltd., 5.625%, Series Bd |
| 3,816 | 86,814 | |||||||||
Athene Holding Ltd., 4.875%, Series Dd |
| 6,460 | 128,812 | |||||||||
Brighthouse Financial, Inc., 5.375%, Series Cd |
| 9,321 | 199,563 | |||||||||
CNO Financial Group, Inc., 5.125%, due 11/25/60 |
| 2,483 | 50,902 | |||||||||
Equitable Holdings, Inc., 5.25%, Series Ad |
| 3,495 | 76,051 | |||||||||
|
| |||||||||||
542,142 | ||||||||||||
|
| |||||||||||
MULTI-LINE | 0.2% | |||||||||||
Hartford Financial Services Group, Inc./The, 6.00%, Series Gd |
| 2,282 | 59,058 | |||||||||
Kemper Corp., 5.875% to 3/15/27, due 3/15/62e |
| 3,025 | 74,385 | |||||||||
|
| |||||||||||
133,443 | ||||||||||||
|
| |||||||||||
PROPERTY CASUALTY | 0.3% | |||||||||||
Enstar Group Ltd., 7.00% to 9/1/28, Series Dd,e |
| 10,325 | 265,352 | |||||||||
|
| |||||||||||
TOTAL INSURANCE |
| 940,937 | ||||||||||
|
| |||||||||||
INTEGRATED TELECOMMUNICATIONS SERVICES | 0.8% | |||||||||||
Telephone and Data Systems, Inc., 6.625%, Series UUd |
| 6,100 | 144,326 | |||||||||
Telephone and Data Systems, Inc., 6.00%, Series VVd |
| 8,525 | 172,461 | |||||||||
United States Cellular Corp., 5.50%, due 3/1/70 |
| 5,814 | 116,745 | |||||||||
United States Cellular Corp., 5.50%, due 6/1/70 |
| 4,864 | 97,961 | |||||||||
United States Cellular Corp., 6.25%, due 9/1/69 |
| 3,295 | 71,403 | |||||||||
|
| |||||||||||
602,896 | ||||||||||||
|
| |||||||||||
PIPELINES | 0.2% | |||||||||||
Energy Transfer LP, 7.60% to 5/15/24, Series Ed,e |
| 6,122 | 148,152 | |||||||||
|
| |||||||||||
PIPELINES—FOREIGN | 0.3% | |||||||||||
Enbridge, Inc., 5.949% to 6/1/23, Series 1 (Canada)d,e |
| 2,156 | 48,186 |
See accompanying notes to financial statements.
18
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Shares | Value | |||||||||||
Enbridge, Inc., 6.375% to 4/15/23, due 4/15/78, Series B (Canada)e |
| 5,300 | $ | 132,500 | ||||||||
TC Energy Corp., 3.351% to 11/30/25, Series 11 (Canada)d,e |
| 3,054 | 49,353 | |||||||||
|
| |||||||||||
230,039 | ||||||||||||
|
| |||||||||||
REAL ESTATE | 0.4% | |||||||||||
HOTEL | 0.1% | |||||||||||
Pebblebrook Hotel Trust, 6.375%, Series Gd |
| 4,000 | 89,000 | |||||||||
|
| |||||||||||
NET LEASE | 0.1% | |||||||||||
Spirit Realty Capital, Inc., 6.00%, Series Ad |
| 4,350 | 107,532 | |||||||||
|
| |||||||||||
OFFICE | 0.2% | |||||||||||
Brookfield Property Partners LP, 5.75%, Series Ad |
| 4,462 | 88,125 | |||||||||
Brookfield Property Preferred LP, 6.25%, due 7/26/81 |
| 3,000 | 62,610 | |||||||||
|
| |||||||||||
150,735 | ||||||||||||
|
| |||||||||||
TOTAL REAL ESTATE |
| 347,267 | ||||||||||
|
| |||||||||||
UTILITIES | 0.6% | |||||||||||
ELECTRIC—FOREIGN | 0.5% | |||||||||||
Algonquin Power & Utilities Corp., 6.20% to 7/1/24, due 7/1/79, Series 19-A (Canada)e |
| 3,707 | 94,899 | |||||||||
Algonquin Power & Utilities Corp., 6.875% to 10/17/23, due 10/17/78 (Canada)e |
| 7,210 | 186,523 | |||||||||
Brookfield BRP Holdings Canada, Inc., 4.625% (Canada)d |
| 2,618 | 46,024 | |||||||||
Brookfield BRP Holdings Canada, Inc., 4.875% (Canada)d |
| 2,422 | 44,904 | |||||||||
|
| |||||||||||
372,350 | ||||||||||||
|
| |||||||||||
GAS—DISTRIBUTION | 0.1% | |||||||||||
NiSource, Inc., 6.50% to 3/15/24, Series Bd,e |
| 3,602 | 94,265 | |||||||||
|
| |||||||||||
TOTAL UTILITIES |
| �� | 466,615 | |||||||||
|
| |||||||||||
TOTAL PREFERRED SECURITIES—$25 PAR VALUE |
| 4,734,488 | ||||||||||
|
| |||||||||||
Principal Amount | ||||||||||||
PREFERRED SECURITIES—CAPITAL SECURITIES | 39.9% | |||||||||||
BANKS | 9.6% | |||||||||||
Ally Financial, Inc., 4.70% to 5/15/26, Series Bd,e |
| $ | 104,000 | 90,129 | ||||||||
Ally Financial, Inc., 4.70% to 5/15/28, Series Cd,e |
| 260,000 | 224,461 |
See accompanying notes to financial statements.
19
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Principal Amount | Value | |||||||||
Bank of America Corp., 5.875% to 3/15/28, Series FFd,e | $ | 237,000 | $ | 227,176 | ||||||
Bank of America Corp., 6.10% to 3/17/25, Series AAd,e | 540,000 | 546,075 | ||||||||
Bank of America Corp., 6.125% to 4/27/27, Series TTd,e | 170,000 | 170,425 | ||||||||
Bank of America Corp., 6.25% to 9/5/24, Series Xd,e | 589,000 | 597,717 | ||||||||
Bank of America Corp., 6.50% to 10/23/24, Series Zd,e | 281,000 | 287,148 | ||||||||
Capital One Financial Corp., 3.95% to 9/1/26, Series Md,e | 116,000 | 100,920 | ||||||||
Citigroup, Inc., 3.875% to 2/18/26d,e | 280,000 | 253,630 | ||||||||
Citigroup, Inc., 4.00% to 12/10/25, Series Wd,e | 153,000 | 139,230 | ||||||||
Citigroup, Inc., 4.15% to 11/15/26, Series Yd,e | 81,000 | 71,855 | ||||||||
Citigroup, Inc., 5.00% to 9/12/24, Series Ud,e | 135,000 | 128,081 | ||||||||
Citigroup, Inc., 5.95% to 5/15/25, Series Pd,e | 635,000 | 621,506 | ||||||||
Citigroup, Inc., 6.25% to 8/15/26, Series Td,e | 277,000 | 277,518 | ||||||||
Citizens Financial Group, Inc., 5.65% to 10/6/25, Series Fd,e | 125,000 | 128,406 | ||||||||
Comerica, Inc., 5.625% to 7/1/25d,e | 123,000 | 125,460 | ||||||||
Farm Credit Bank of Texas, 5.70% to 9/15/25, Series 4, 144Aa,d,e | 125,000 | 131,250 | ||||||||
Fifth Third Bancorp, 4.50% to 9/30/25, Series Ld,e | 74,000 | 71,959 | ||||||||
Goldman Sachs Capital I, 6.345%, due 2/15/34 (TruPS) | 69,000 | 76,798 | ||||||||
Goldman Sachs Group, Inc./The, 3.65% to 8/10/26, Series Ud,e | 67,000 | 58,290 | ||||||||
Goldman Sachs Group, Inc./The, 4.125% to 11/10/26, Series Vd,e | 117,000 | 105,074 | ||||||||
Goldman Sachs Group, Inc./The, 5.50% to 8/10/24, Series Qd,e | 279,000 | 280,267 | ||||||||
JPMorgan Chase & Co., 3.65% to 6/1/26, Series KKd,e | 42,000 | 37,800 | ||||||||
JPMorgan Chase & Co., 4.60% to 2/1/25, Series HHd,e | 40,000 | 37,072 | ||||||||
JPMorgan Chase & Co., 5.00% to 8/1/24, Series FFd,e | 115,000 | 109,057 | ||||||||
JPMorgan Chase & Co., 6.10% to 10/1/24, Series Xd,e | 345,000 | 345,940 | ||||||||
JPMorgan Chase & Co., 6.125% to 4/30/24, Series Ud,e | 280,000 | 282,678 | ||||||||
JPMorgan Chase & Co., 6.75% to 2/1/24, Series Sd,e | 194,000 | 197,533 | ||||||||
PNC Financial Services Group, Inc./The, 3.995% (3 Month US LIBOR + 3.678%), Series O (FRN)d,f | 96,000 | 95,691 | ||||||||
PNC Financial Services Group, Inc./The, 6.00% to 5/15/27, Series Ud,e | 170,000 | 170,000 | ||||||||
Regions Financial Corp., 5.75% to 6/15/25, Series Dd,e | 100,000 | 102,250 | ||||||||
SVB Financial Group, 4.00% to 5/15/26, Series Cd,e | 210,000 | 182,899 | ||||||||
SVB Financial Group, 4.25% to 11/15/26, Series Dd,e | 210,000 | 182,175 | ||||||||
SVB Financial Group, 4.70% to 11/15/31, Series Ed,e | 110,000 | 90,545 |
See accompanying notes to financial statements.
20
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Principal Amount | Value | |||||||||||
Truist Financial Corp., 4.95% to 9/1/25, Series Pd,e |
| $ | 88,000 | $ | 88,110 | |||||||
US Bancorp, 3.70% to 1/15/27d,e |
| 44,000 | 37,698 | |||||||||
Wells Fargo & Co., 3.90% to 3/15/26, Series BBd,e |
| 503,000 | 459,277 | |||||||||
Wells Fargo & Co., 5.875% to 6/15/25, Series Ud,e |
| 358,000 | 361,580 | |||||||||
|
| |||||||||||
7,493,680 | ||||||||||||
|
| |||||||||||
BANKS—FOREIGN | 14.0% | |||||||||||
Abanca Corp. Bancaria SA, 6.00% to 1/20/26 (Spain)d,e,g,h |
| 400,000 | 400,347 | |||||||||
AIB Group PLC, 6.25% to 6/23/25 (Ireland)d,e,g,h |
| 200,000 | 208,403 | |||||||||
Australia & New Zealand Banking Group Ltd./United Kingdom, 6.75% to 6/15/26, 144A (Australia)a,d,e,h |
| 200,000 | 209,667 | |||||||||
Banco Bilbao Vizcaya Argentaria SA, 6.125% to 11/16/27 (Spain)d,e,h |
| 200,000 | 186,250 | |||||||||
Banco BPM SpA, 7.00% to 4/12/27 (Italy)d,e,g,h |
| 200,000 | 209,915 | |||||||||
Banco de Sabadell SA, 5.75% to 3/15/26 (Spain)d,e,g,h |
| 200,000 | 195,538 | |||||||||
Banco Mercantil del Norte SA/Grand Cayman, 6.625% to 1/24/32, 144A (Mexico)a,d,e,h |
| 200,000 | 179,300 | |||||||||
Banco Santander SA, 7.50% to 2/8/24 (Spain)d,e,g,h |
| 200,000 | 202,188 | |||||||||
Bank of Ireland Group PLC, 7.50% to 5/19/25 (Ireland)d,e,g,h |
| 200,000 | 222,336 | |||||||||
Bank of Nova Scotia/The, 4.90% to 6/4/25 (Canada)d,e |
| 140,000 | 137,712 | |||||||||
Barclays PLC, 6.125% to 12/15/25 (United Kingdom)d,e,h |
| 200,000 | 196,374 | |||||||||
Barclays PLC, 8.00% to 6/15/24 (United Kingdom)d,e,h |
| 400,000 | 413,250 | |||||||||
BNP Paribas SA, 7.375% to 8/19/25, 144A (France)a,d,e,h |
| 400,000 | 416,642 | |||||||||
Commerzbank AG, 7.00% to 4/9/25 (Germany)d,e,g,h |
| 200,000 | 197,800 | |||||||||
Credit Agricole SA, 6.875% to 9/23/24, 144A (France)a,d,e,h |
| 200,000 | 201,350 | |||||||||
Credit Agricole SA, 7.875% to 1/23/24, 144A (France)a,d,e,h |
| 400,000 | 411,000 | |||||||||
Credit Agricole SA, 8.125% to 12/23/25, 144A (France)a,d,e,h |
| 200,000 | 215,565 | |||||||||
Credit Suisse Group AG, 6.25% to 12/18/24, 144A (Switzerland)a,d,e,h |
| 200,000 | 194,600 | |||||||||
Credit Suisse Group AG, 6.375% to 8/21/26, 144A (Switzerland)a,d,e,h |
| 400,000 | 377,556 | |||||||||
Deutsche Bank AG, 6.75% to 10/30/28 (Germany)d,e,g,h |
| 200,000 | 206,293 | |||||||||
Deutsche Bank AG, 7.50% to 4/30/25 (Germany)d,e,h |
| 400,000 | 393,500 | |||||||||
HSBC Capital Funding Dollar 1 LP, 10.176% to 6/30/30, 144A (United Kingdom)a,d,e |
| 65,000 | 95,225 | |||||||||
Iccrea Banca SpA, 4.75% to 10/18/26, due 1/18/32, Series EMTN (Italy)e,g |
| 200,000 | 198,214 | |||||||||
ING Groep N.V., 5.75% to 11/16/26 (Netherlands)d,e,h |
| 200,000 | 192,167 |
See accompanying notes to financial statements.
21
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Principal Amount | Value | |||||||||||
Intesa Sanpaolo SpA, 6.375% to 3/30/28 (Italy)d,e,g,h |
| $ | 200,000 | $ | 201,721 | |||||||
Intesa Sanpaolo SpA, 7.70% to 9/17/25, 144A (Italy)a,d,e,h |
| 200,000 | 202,000 | |||||||||
Lloyds Banking Group PLC, 7.50% to 6/27/24 (United Kingdom)d,e,h |
| 400,000 | 408,748 | |||||||||
Lloyds Banking Group PLC, 7.50% to 9/27/25 (United Kingdom)d,e,h |
| 400,000 | 412,040 | |||||||||
Macquarie Bank Ltd./London, 6.125% to 3/8/27, 144A (Australia)a,d,e,h |
| 200,000 | 192,767 | |||||||||
Nationwide Building Society, 5.75% to 6/20/27 (United Kingdom)d,e,g,h |
| 200,000 | 249,130 | |||||||||
Natwest Group PLC, 6.00% to 12/29/25 (United Kingdom)d,e,h |
| 400,000 | 395,220 | |||||||||
Natwest Group PLC, 8.00% to 8/10/25 (United Kingdom)d,e,h |
| 400,000 | 421,736 | |||||||||
Royal Bank of Canada, 4.50% to 10/24/25, due 11/24/80, Series 1 (Canada)e |
| 200,000 | 151,816 | |||||||||
Societe Generale SA, 6.75% to 4/6/28, 144A (France)a,d,e,h |
| 200,000 | 191,253 | |||||||||
Societe Generale SA, 7.875% to 12/18/23, 144A (France)a,d,e,h |
| 400,000 | 410,362 | |||||||||
Societe Generale SA, 8.00% to 9/29/25, 144A (France)a,d,e,h |
| 200,000 | 208,585 | |||||||||
Standard Chartered PLC, 7.75% to 4/2/23, 144A (United Kingdom)a,d,e,h |
| 400,000 | 410,304 | |||||||||
UBS Group AG, 6.875% to 8/7/25 (Switzerland)d,e,g,h |
| 200,000 | 203,152 | |||||||||
UBS Group AG, 7.00% to 2/19/25 (Switzerland)d,e,g,h |
| 400,000 | 409,004 | |||||||||
UBS Group AG, 7.00% to 1/31/24, 144A (Switzerland)a,d,e,h |
| 400,000 | 407,500 | |||||||||
UniCredit SpA, 8.00% to 6/3/24 (Italy)d,e,g,h |
| 200,000 | 202,128 | |||||||||
|
| |||||||||||
10,938,658 | ||||||||||||
|
| |||||||||||
ELECTRIC | 1.6% | |||||||||||
American Electric Power Co., Inc., 3.875% to 11/15/26, due 2/15/62e |
| 101,000 | 90,558 | |||||||||
CenterPoint Energy, Inc., 6.125% to 9/1/23, Series Ad,e |
| 170,000 | 163,684 | |||||||||
CMS Energy Corp., 4.75% to 3/1/30, due 6/1/50e |
| 65,000 | 62,563 | |||||||||
Dominion Energy, Inc., 4.35% to 1/15/27, Series Cd,e |
| 127,000 | 116,624 | |||||||||
Dominion Energy, Inc., 4.65% to 12/15/24, Series Bd,e |
| 120,000 | 115,200 | |||||||||
Duke Energy Corp., 4.875% to 9/16/24d,e |
| 300,000 | 297,750 | |||||||||
NextEra Energy Capital Holdings, Inc., 3.80% to 3/15/27, due 3/15/82e |
| 65,000 | 56,684 |
See accompanying notes to financial statements.
22
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Principal Amount | Value | |||||||||||
Southern Co./The, 3.75% to 6/15/26, due 9/15/51, Series 21-Ae |
| $ | 143,000 | $ | 129,058 | |||||||
Southern Co./The, 4.00% to 10/15/25, due 1/15/51, Series Be |
| 190,000 | 181,005 | |||||||||
|
| |||||||||||
1,213,126 | ||||||||||||
|
| |||||||||||
ELECTRIC—FOREIGN | 0.8% | |||||||||||
Electricite de France SA, 5.00% to 1/22/26, Series EMTN (France)d,e,g |
| 200,000 | 207,258 | |||||||||
Emera, Inc., 6.75% to 6/15/26, due 6/15/76, Series 16-A (Canada)e |
| 313,000 | 318,478 | |||||||||
SSE PLC, 4.00% to 1/21/28 (United Kingdom)d,e,g |
| 100,000 | 104,215 | |||||||||
|
| |||||||||||
629,951 | ||||||||||||
|
| |||||||||||
FINANCIAL | 1.6% | |||||||||||
CREDIT CARD | 0.1% | |||||||||||
Discover Financial Services, 6.125% to 6/23/25, Series Dd,e |
| 40,000 | 40,800 | |||||||||
|
| |||||||||||
DIVERSIFIED FINANCIAL SERVICES | 0.4% | |||||||||||
Aircastle Ltd., 5.25% to 6/15/26, 144Aa,d,e |
| 60,000 | 53,483 | |||||||||
Ares Finance Co. III LLC, 4.125% to 6/30/26, due 6/30/51, 144Aa,e |
| 165,000 | 153,622 | |||||||||
ILFC E-Capital Trust II, 4.30% (30 Year CMT + 1.80%), due 12/21/65, 144A (FRN) (TruPS)a,f |
| 110,000 | 88,550 | |||||||||
|
| |||||||||||
295,655 | ||||||||||||
|
| |||||||||||
INVESTMENT BANKER/BROKER | 1.1% | |||||||||||
Charles Schwab Corp./The, 4.00% to 12/1/30, Series Hd,e |
| 164,000 | 139,215 | |||||||||
Charles Schwab Corp./The, 4.00% to 6/1/26, Series Id,e |
| 470,000 | 426,760 | |||||||||
Charles Schwab Corp./The, 5.00% to 6/1/27d,e |
| 49,000 | 47,332 | |||||||||
Charles Schwab Corp./The, 5.375% to 6/1/25, Series Gd,e |
| 252,000 | 255,168 | |||||||||
|
| |||||||||||
868,475 | ||||||||||||
|
| |||||||||||
TOTAL FINANCIAL |
| 1,204,930 | ||||||||||
|
| |||||||||||
INSURANCE | 6.8% | |||||||||||
FINANCE | 0.2% | |||||||||||
Liberty Mutual Group, Inc., 4.125% to 9/15/26, due 12/15/51, 144Aa,e |
| 138,000 | 125,448 | |||||||||
|
| |||||||||||
LIFE/HEALTH INSURANCE | 1.1% | |||||||||||
Equitable Holdings, Inc., 4.95% to 9/15/25, Series Bd,e |
| 145,000 | 145,072 | |||||||||
MetLife, Inc., 9.25%, due 4/8/38, 144Aa |
| 100,000 | 123,833 |
See accompanying notes to financial statements.
23
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Principal Amount | Value | |||||||||||
MetLife, Inc., 10.75%, due 8/1/69 |
| $ | 100,000 | $ | 139,908 | |||||||
SBL Holdings, Inc., 6.50% to 11/13/26, 144Aa,d,e |
| 150,000 | 132,000 | |||||||||
SBL Holdings, Inc., 7.00% to 5/13/25, 144Aa,d,e |
| 140,000 | 125,825 | |||||||||
Voya Financial, Inc., 6.125% to 9/15/23, Series Ad,e |
| 225,000 | 224,438 | |||||||||
|
| |||||||||||
891,076 | ||||||||||||
|
| |||||||||||
LIFE/HEALTH INSURANCE—FOREIGN | 2.4% | |||||||||||
Dai-ichi Life Insurance Co., Ltd./The, 5.10% to 10/28/24, 144A (Japan)a,d,e |
| 600,000 | 613,500 | |||||||||
Fukoku Mutual Life Insurance Co., 6.50% to 9/19/23 (Japan)d,e,g |
| 400,000 | 411,634 | |||||||||
La Mondiale SAM, 5.875% to 1/26/27, due 1/26/47 (France)e,g |
| 200,000 | 202,549 | |||||||||
Phoenix Group Holdings PLC, 5.625% to 1/29/25 (United Kingdom)d,e,g,h |
| 200,000 | 196,877 | |||||||||
Rothesay Life PLC, 4.875% to 4/13/27, Series NC6 (United Kingdom)d,e,g,h |
| 200,000 | 179,754 | |||||||||
Rothesay Life PLC, 6.875% to 9/12/28 (United Kingdom)d,e,g,h |
| 200,000 | 257,158 | |||||||||
|
| |||||||||||
1,861,472 | ||||||||||||
|
| |||||||||||
MULTI-LINE | 0.1% | |||||||||||
Hartford Financial Services Group, Inc./The, 2.631% (3 Month US LIBOR + 2.125%), due 2/12/67, 144A, Series ICON (FRN)a,f |
| 100,000 | 88,107 | |||||||||
|
| |||||||||||
MULTI-LINE—FOREIGN | 0.2% | |||||||||||
AXA SA, 6.379% to 12/14/36, 144A (France)a,d,e |
| 100,000 | 124,184 | |||||||||
|
| |||||||||||
PROPERTY CASUALTY | 1.2% | |||||||||||
Assurant, Inc., 7.00% to 3/27/28, due 3/27/48e |
| 500,000 | 517,177 | |||||||||
Enstar Finance LLC, 5.50% to 1/15/27, due 1/15/42e |
| 120,000 | 111,811 | |||||||||
Enstar Finance LLC, 5.75% to 9/1/25, due 9/1/40e |
| 130,000 | 128,105 | |||||||||
Markel Corp., 6.00% to 6/1/25d,e |
| 180,000 | 184,275 | |||||||||
|
| |||||||||||
941,368 | ||||||||||||
|
| |||||||||||
PROPERTY CASUALTY—FOREIGN | 1.3% | |||||||||||
Athora Netherlands NV, 6.25% to 11/16/22 (Netherlands)d,e,g |
| 200,000 | 200,300 | |||||||||
Lancashire Holdings Ltd., 5.625% to 3/18/31, due 9/18/41 (United Kingdom)e,g |
| 200,000 | 178,900 |
See accompanying notes to financial statements.
24
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Principal Amount | Value | |||||||||||
QBE Insurance Group Ltd., 5.875% to 5/12/25, 144A (Australia)a,d,e |
| $ | 400,000 | $ | 403,000 | |||||||
QBE Insurance Group Ltd., 7.50% to 11/24/23, due 11/24/43, 144A (Australia)a,e |
| 200,000 | 208,256 | |||||||||
|
| |||||||||||
990,456 | ||||||||||||
|
| |||||||||||
REINSURANCE | 0.3% | |||||||||||
AXIS Specialty Finance LLC, 4.90% to 1/15/30, due 1/15/40e |
| 55,000 | 51,225 | |||||||||
Global Atlantic Fin Co., 4.70% to 7/15/26, due 10/15/51, 144Aa,e |
| 242,000 | 220,065 | |||||||||
|
| |||||||||||
271,290 | ||||||||||||
|
| |||||||||||
TOTAL INSURANCE |
| 5,293,401 | ||||||||||
|
| |||||||||||
INTEGRATED TELECOMMUNICATIONS SERVICES—FOREIGN | 0.1% | |||||||||||
Vodafone Group PLC, 4.125% to 3/4/31, due 6/4/81 (United Kingdom)e |
| 110,000 | 95,218 | |||||||||
|
| |||||||||||
OIL & GAS—FOREIGN | 0.7% | |||||||||||
BP Capital Markets PLC, 4.375% to 6/22/25 (United Kingdom)d,e |
| 235,000 | 228,960 | |||||||||
BP Capital Markets PLC, 4.875% to 3/22/30 (United Kingdom)d,e |
| 305,000 | 293,357 | |||||||||
|
| |||||||||||
522,317 | ||||||||||||
|
| |||||||||||
PIPELINES | 0.4% | |||||||||||
Energy Transfer LP, 6.50% to 11/15/26, Series Hd,e |
| 120,000 | 114,313 | |||||||||
Energy Transfer LP, 7.125% to 5/15/30, Series Gd,e |
| 200,000 | 189,220 | |||||||||
|
| |||||||||||
303,533 | ||||||||||||
|
| |||||||||||
PIPELINES—FOREIGN | 2.2% | |||||||||||
Enbridge, Inc., 5.75% to 4/15/30, due 7/15/80, Series 20-A (Canada)e |
| 315,000 | 313,425 | |||||||||
Enbridge, Inc., 6.00% to 1/15/27, due 1/15/77, Series 16-A (Canada)e |
| 300,000 | 301,805 | |||||||||
Enbridge, Inc., 6.25% to 3/1/28, due 3/1/78 (Canada)e |
| 80,000 | 80,795 | |||||||||
Transcanada Trust, 5.50% to 9/15/29, due 9/15/79 (Canada)e |
| 283,000 | 273,449 | |||||||||
Transcanada Trust, 5.60% to 12/7/31, due 3/7/82 (Canada)e |
| 122,000 | 118,187 | |||||||||
Transcanada Trust, 5.625% to 5/20/25, due 5/20/75 (Canada)e |
| 175,000 | 174,912 |
See accompanying notes to financial statements.
25
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Principal Amount | Value | |||||||||||
Transcanada Trust, 5.875% to 8/15/26, due 8/15/76, Series 16-A (Canada)e |
| $ | 420,000 | $ | 422,029 | |||||||
|
| |||||||||||
1,684,602 | ||||||||||||
|
| |||||||||||
REAL ESTATE—RETAIL—FOREIGN | 0.7% | |||||||||||
Scentre Group Trust 2, 4.75% to 6/24/26, due 9/24/80, 144A (Australia)a,e |
| 400,000 | 386,640 | |||||||||
Scentre Group Trust 2, 5.125% to 6/24/30, due 9/24/80, 144A (Australia)a,e |
| 200,000 | 191,208 | |||||||||
|
| |||||||||||
577,848 | ||||||||||||
|
| |||||||||||
UTILITIES | 1.4% | |||||||||||
ELECTRIC | 1.1% | |||||||||||
Edison International, 5.00% to 12/15/26, Series Bd,e |
| 222,000 | 201,492 | |||||||||
Edison International, 5.375% to 3/15/26, Series Ad,e |
| 203,000 | 187,740 | |||||||||
NextEra Energy Capital Holdings, Inc., 5.65% to 5/1/29, due 5/1/79e |
| 55,000 | 54,119 | |||||||||
Sempra Energy, 4.125% to 1/1/27, due 4/1/52e |
| 160,000 | 140,907 | |||||||||
Sempra Energy, 4.875% to 10/15/25d,e |
| 315,000 | 311,063 | |||||||||
|
| |||||||||||
895,321 | ||||||||||||
|
| |||||||||||
ELECTRIC—FOREIGN | 0.2% | |||||||||||
Algonquin Power & Utilities Corp., 4.75% to 1/18/27, due 1/18/82 (Canada)e |
| 200,000 | 183,188 | |||||||||
|
| |||||||||||
GAS—DISTRIBUTION | 0.1% | |||||||||||
South Jersey Industries, Inc., 5.02%, due 4/15/31 |
| 40,000 | 38,324 | |||||||||
|
| |||||||||||
TOTAL UTILITIES |
| 1,116,833 | ||||||||||
|
| |||||||||||
TOTAL PREFERRED SECURITIES—CAPITAL SECURITIES |
| 31,074,097 | ||||||||||
|
| |||||||||||
Shares | ||||||||||||
SHORT-TERM INVESTMENTS | 2.4% | |||||||||||
MONEY MARKET FUNDS | ||||||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.35%i |
| 1,892,684 | 1,892,684 | |||||||||
|
| |||||||||||
TOTAL SHORT-TERM INVESTMENTS |
| 1,892,684 | ||||||||||
|
|
See accompanying notes to financial statements.
26
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Value | ||||||||||||
PURCHASED OPTION CONTRACTS | 0.1% | |||||||||||
(Premiums paid—$24,282) |
| $ | 95,839 | |||||||||
|
| |||||||||||
TOTAL INVESTMENTSIN SECURITIES | 98.8% | 77,065,082 | ||||||||||
WRITTEN OPTION CONTRACTS | ||||||||||||
(Premiums received—$66,286) | (0.2) | (133,720 | ) | |||||||||
OTHER ASSETSIN EXCESSOF LIABILITIES | 1.4 | 1,070,163 | ||||||||||
|
|
|
| |||||||||
NET ASSETS | 100.0% | $ | 78,001,525 | |||||||||
|
|
|
|
Over-The-Counter Option Contracts
Purchased Options
Interest Rate Swaptions
Description | Counterparty | Exercise Rate | Expiration Date | Notional Amountj | Premiums Paid | Value | ||||||||||||||||
Option to receive USD-SOFR-OIS Annually, Pay 2.00% Annually, maturing 8/29/32 | Goldman Sachs International | 2.00 | % | 8/25/22 | $1,352,000 | $24,282 | $95,839 | |||||||||||||||
|
Written Options
Interest Rate Swaptions
Description | Counterparty | Exercise Rate | Expiration Date | Notional Amountj | Premiums Received | Value | ||||||||||||||||
Option to pay USD-SOFR-OIS Annually, Receive 2.30% Annually, maturing 8/29/32 | Goldman Sachs International | 2.30 | % | 8/25/22 | $(1,352,000 | ) | $(13,114 | ) | $(66,900 | ) | ||||||||||||
|
Equity Options
Description | Counterparty | Exercise Price | Expiration Date | Number of Contracts | Notional Amountk | Premiums Received | Value | |||||||||||||||||||
Call—Aena SME SA | Goldman Sachs International | $161.835 | 5/20/22 | (414 | ) | $ | (59,529 | ) | $ | (1,071 | ) | $ | (15 | ) | ||||||||||||
Call—Agnico Eagle Mines Ltd. | Goldman Sachs International | 88.552 | 5/20/22 | (2,561 | ) | (149,077 | ) | (2,646 | ) | (377 | ) | |||||||||||||||
Call—American Water Works Co., Inc. | Goldman Sachs International | 166.763 | 5/20/22 | (707 | ) | (108,935 | ) | (1,997 | ) | (526 | ) | |||||||||||||||
Call—Atlantia SpA | Goldman Sachs International | 19.326 | 5/20/22 | (1,584 | ) | (38,150 | ) | (468 | ) | (5,854 | ) |
See accompanying notes to financial statements.
27
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Description | Counterparty | Exercise Price | Expiration Date | Number of Contracts | Notional Amountk | Premiums Received | Value | |||||||||||||||||||
Call—BHP Group Ltd. | Goldman Sachs International | $ | 28.735 | 5/20/22 | (4,347 | ) | $ | (148,952 | ) | $ | (2,519 | ) | $ | (2,259 | ) | |||||||||||
Call—Bunge Ltd. | Goldman Sachs International | 115.408 | 5/20/22 | (933 | ) | (105,541 | ) | (1,568 | ) | (2,597 | ) | |||||||||||||||
Call—Cellnex Telecom SA | Goldman Sachs International | 48.239 | 5/20/22 | (3,193 | ) | (150,098 | ) | (2,296 | ) | (728 | ) | |||||||||||||||
Call—Centerpoint Energy, Inc. | Goldman Sachs International | 30.009 | 5/20/22 | (2,407 | ) | (73,678 | ) | (1,324 | ) | (2,545 | ) | |||||||||||||||
Call—Cheniere Energy, Inc. | Goldman Sachs International | 148.632 | 5/20/22 | (1,688 | ) | (229,247 | ) | (3,759 | ) | (2,722 | ) | |||||||||||||||
Call—Digital Realty Trust, Inc. | Goldman Sachs International | 148.767 | 5/20/22 | (923 | ) | (134,869 | ) | (1,751 | ) | (2,644 | ) | |||||||||||||||
Call—Equinix, Inc. | Goldman Sachs International | 789.125 | 5/20/22 | (16 | ) | (11,505 | ) | (120 | ) | (19 | ) | |||||||||||||||
Call—Host Hotels & Resorts, Inc. | Goldman Sachs International | 21.381 | 5/20/22 | (1,101 | ) | (22,405 | ) | (187 | ) | (477 | ) | |||||||||||||||
Call—Hydro One Ltd. | Goldman Sachs International | 32.729 | 5/20/22 | (2,341 | ) | (63,288 | ) | (1,189 | ) | (3,942 | ) | |||||||||||||||
Call—Lamar Advertising Co. | Goldman Sachs International | 125.427 | 5/20/22 | (268 | ) | (29,590 | ) | (335 | ) | (63 | ) | |||||||||||||||
Call—Mid-America Apartment Communities, Inc. | Goldman Sachs International | 220.148 | 5/20/22 | (71 | ) | (13,964 | ) | (167 | ) | (18 | ) | |||||||||||||||
Call—National Grid PLC | Goldman Sachs International | 11.658 | 5/20/22 | (7,133 | ) | (107,095 | ) | (2,097 | ) | (3,980 | ) | |||||||||||||||
Call—Oneok, Inc. | Goldman Sachs International | 71.585 | 5/20/22 | (2,808 | ) | (177,831 | ) | (3,307 | ) | (525 | ) | |||||||||||||||
Call—Pembina Pipeline Corp. | Goldman Sachs International | 46.999 | 5/20/22 | (2,159 | ) | (81,695 | ) | (1,434 | ) | (4,035 | ) | |||||||||||||||
Call—Prologis, Inc. | Goldman Sachs International | 172.476 | 5/20/22 | (580 | ) | (92,968 | ) | (1,129 | ) | (240 | ) | |||||||||||||||
Call—Public Storage | Goldman Sachs International | 390.988 | 5/20/22 | (512 | ) | (190,208 | ) | (2,344 | ) | (2,291 | ) | |||||||||||||||
Call—Sempra Energy | Goldman Sachs International | 158.885 | 5/20/22 | (1,796 | ) | (289,803 | ) | (5,729 | ) | (10,195 | ) | |||||||||||||||
Call—Suncor Energy, Inc. | Goldman Sachs International | 44.019 | 5/20/22 | (4,087 | ) | (146,918 | ) | (1,860 | ) | (10,639 | ) | |||||||||||||||
Call—Targa Resources Corp. | Goldman Sachs International | 78.202 | 5/20/22 | (4,308 | ) | (316,250 | ) | (5,114 | ) | (5,860 | ) | |||||||||||||||
Call—UDR, Inc. | Goldman Sachs International | 60.787 | 5/20/22 | (1,163 | ) | (61,883 | ) | (787 | ) | (39 | ) | |||||||||||||||
Call—Ventas, Inc. | Goldman Sachs International | 64.531 | 5/20/22 | (1,006 | ) | (55,883 | ) | (653 | ) | (83 | ) | |||||||||||||||
Call—Vinci SA | Goldman Sachs International | 98.858 | 5/20/22 | (2,372 | ) | (232,317 | ) | (3,957 | ) | (1,123 | ) |
See accompanying notes to financial statements.
28
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Description | Counterparty | Exercise Price | Expiration Date | Number of Contracts | Notional Amountk | Premiums Received | Value | |||||||||||||||||||
Call—Waste Management, Inc. | Goldman Sachs International | $160.385 | 5/20/22 | (346 | ) | $ | (56,896 | ) | $ | (1,090 | ) | $ | (2,460 | ) | ||||||||||||
Call—Welltower, Inc. | Goldman Sachs International | 98.717 | 5/20/22 | (1,911 | ) | (173,538 | ) | (2,274 | ) | (564 | ) | |||||||||||||||
(52,735 | ) | $ | (3,322,113 | ) | $ | (53,172 | ) | $ | (66,820 | ) | ||||||||||||||||
|
Forward Foreign Currency Exchange Contracts
Counterparty | Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||||||
Brown Brothers Harriman | CAD | 270,042 | USD | 216,305 | 5/3/2022 | $ | 6,100 | |||||||||||||
Brown Brothers Harriman | EUR | 100,179 | USD | 107,987 | 5/3/2022 | 2,303 | ||||||||||||||
Brown Brothers Harriman | EUR | 191,748 | USD | 208,556 | 5/3/2022 | 6,271 | ||||||||||||||
Brown Brothers Harriman | EUR | 191,234 | USD | 208,127 | 5/3/2022 | 6,385 | ||||||||||||||
Brown Brothers Harriman | EUR | 222,377 | USD | 248,305 | 5/3/2022 | 13,709 | ||||||||||||||
Brown Brothers Harriman | EUR | 1,202,430 | USD | 1,332,966 | 5/3/2022 | 64,462 | ||||||||||||||
Brown Brothers Harriman | USD | 210,915 | CAD | 270,042 | 5/3/2022 | (709 | ) | |||||||||||||
Brown Brothers Harriman | USD | 2,010,311 | EUR | 1,907,968 | 5/3/2022 | 2,500 | ||||||||||||||
Brown Brothers Harriman | GBP | 618,648 | USD | 812,724 | 5/4/2022 | 34,805 | ||||||||||||||
Brown Brothers Harriman | USD | 262,796 | GBP | 200,748 | 5/4/2022 | (10,366 | ) | |||||||||||||
Brown Brothers Harriman | USD | 525,208 | GBP | 417,900 | 5/4/2022 | 280 | ||||||||||||||
Brown Brothers Harriman | CAD | 261,861 | USD | 204,512 | 6/2/2022 | 680 | ||||||||||||||
Brown Brothers Harriman | EUR | 1,911,373 | USD | 2,016,288 | 6/2/2022 | (2,660 | ) | |||||||||||||
Brown Brothers Harriman | EUR | 160,853 | USD | 169,070 | 6/2/2022 | (836 | ) | |||||||||||||
Brown Brothers Harriman | GBP | 408,776 | USD | 513,692 | 6/6/2022 | (313 | ) | |||||||||||||
$ | 122,611 | |||||||||||||||||||
|
See accompanying notes to financial statements.
29
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Glossary of Portfolio Abbreviations
CAD | Canadian Dollar | |
CMT | Constant Maturity Treasury | |
EMTN | Euro Medium Term Note | |
EUR | Euro Currency | |
FRN | Floating Rate Note | |
GBP | Great British Pound | |
LIBOR | London Interbank Offered Rate | |
MLP | Master Limited Partnership | |
OIS | Overnight Indexed Swap | |
REIT | Real Estate Investment Trust | |
SOFR | Secured Overnight Financing Rate | |
TruPS | Trust Preferred Securities | |
USD | United States Dollar |
Note: Percentages indicated are based on the net assets of the Fund.
a | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may only be resold to qualified institutional buyers. Aggregate holdings amounted to $8,765,196 which represents 11.2% of the net assets of the Fund, of which 0.0% are illiquid. |
b | Non-income producing security. |
c | Stapled security. A security contractually bound to one or more other securities to form a single saleable unit which cannot be sold separately. |
d | Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer. |
e | Security converts to floating rate after the indicated fixed-rate coupon period. |
f | Variable rate. Rate shown is in effect at April 30, 2022. |
g | Securities exempt from registration under Regulation S of the Securities Act of 1933. These securities are subject to resale restrictions. Aggregate holdings amounted to $5,244,814 which represents 6.7% of the net assets of the Fund, of which 0.0% are illiquid. |
h | Contingent Capital security (CoCo). CoCos are debt or preferred securities with loss absorption characteristics built into the terms of the security for the benefit of the issuer. Aggregate holdings amounted to $10,989,480 or 14.1% of the net assets of the Fund. |
i | Rate quoted represents the annualized seven-day yield. |
j | Represents the notional amount of the underlying swap contract. |
k | Represents the number of contracts multiplied by notional contract size multiplied by the underlying price. |
See accompanying notes to financial statements.
30
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2022 (Unaudited)
Country Summary | % of Net Assets | |||
United States | 49.9 | |||
Canada | 11.5 | |||
United Kingdom | 8.4 | |||
France | 5.4 | |||
Australia | 4.3 | |||
Japan | 2.9 | |||
Spain | 2.7 | |||
Switzerland | 2.0 | |||
Italy | 2.0 | |||
Germany | 1.8 | |||
China | 0.9 | |||
Hong Kong | 0.8 | |||
Singapore | 0.6 | |||
Netherlands | 0.6 | |||
South Africa | 0.6 | |||
Ireland | 0.6 | |||
Other (includes short-term investments) | 5.0 | |||
|
| |||
100.0 | ||||
|
|
See accompanying notes to financial statements.
31
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2022 (Unaudited)
ASSETS: |
| |||
Investments in securities, at value (Identified cost—$75,444,926) | $ | 77,065,082 | ||
Foreign currency, at value (Identified cost—$187,981) | 186,224 | |||
Receivable for: | ||||
Investment securities sold | 809,663 | |||
Dividends and interest | 491,465 | |||
Fund shares sold | 90,958 | |||
Unrealized appreciation on forward foreign currency exchange contracts | 137,495 | |||
Due from investment advisor | 118 | |||
Other assets | 890 | |||
|
| |||
Total Assets | 78,781,895 | |||
|
| |||
LIABILITIES: |
| |||
Written option contracts, at value (Premiums received—$66,286) | 133,720 | |||
Unrealized depreciation on forward foreign currency exchange contracts | 14,884 | |||
Payable for: | ||||
Investment securities purchased | 335,836 | |||
Fund shares redeemed | 79,612 | |||
Dividends declared | 19,960 | |||
Shareholder servicing fees | 12,598 | |||
Administration fees | 1,319 | |||
Distribution fees | 630 | |||
Other liabilities | 181,811 | |||
|
| |||
Total Liabilities | 780,370 | |||
|
| |||
NET ASSETS | $ | 78,001,525 | ||
|
| |||
NET ASSETS consist of: |
| |||
Paid-in capital | $ | 83,609,466 | ||
Total distributable earnings/(accumulated loss) | (5,607,941 | ) | ||
|
| |||
$ | 78,001,525 | |||
|
|
See accompanying notes to financial statements.
32
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES—(Continued)
April 30, 2022 (Unaudited)
CLASS A SHARES: |
| |||
NET ASSETS | $ | 15,269,019 | ||
Shares issued and outstanding ($0.001 par value common stock outstanding) | 1,318,909 | |||
|
| |||
Net asset value and redemption price per share | $ | 11.58 | ||
|
| |||
Maximum offering price per share ($11.58 ÷ 0.955)a | $ | 12.13 | ||
|
| |||
CLASS C SHARES: |
| |||
NET ASSETS | $ | 4,917,397 | ||
Shares issued and outstanding ($0.001 par value common stock outstanding) | 428,224 | |||
|
| |||
Net asset value and offering price per shareb | $ | 11.48 | ||
|
| |||
CLASS I SHARES: |
| |||
NET ASSETS | $ | 57,630,792 | ||
Shares issued and outstanding ($0.001 par value common stock outstanding) | 4,963,596 | |||
|
| |||
Net asset value, offering and redemption price per share | $ | 11.61 | ||
|
| |||
CLASS R SHARES: |
| |||
NET ASSETS | $ | 100,794 | ||
Shares issued and outstanding ($0.001 par value common stock outstanding) | 8,691 | |||
|
| |||
Net asset value, offering and redemption price per share | $ | 11.60 | ||
|
| |||
CLASS Z SHARES: |
| |||
NET ASSETS | $ | 83,523 | ||
Shares issued and outstanding ($0.001 par value common stock outstanding) | 7,194 | |||
|
| |||
Net asset value, offering and redemption price per share | $ | 11.61 | ||
|
|
a | On investments of $100,000 or more, the offering price is reduced. |
b | Redemption price per share is equal to the net asset value per share less any applicable contingent deferred sales charge of 1.00% on shares held for less than one year. |
See accompanying notes to financial statements.
33
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 2022 (Unaudited)
Investment Income: |
| |||
Interest income | $ | 712,827 | ||
Dividend income (net of $34,847 of foreign withholding tax) | 639,858 | |||
|
| |||
Total Investment Income | 1,352,685 | |||
|
| |||
Expenses: |
| |||
Investment advisory fees | 271,758 | |||
Professional fees | 91,085 | |||
Registration and filing fees | 41,396 | |||
Administration fees | 41,353 | |||
Distribution fees—Class A | 19,356 | |||
Distribution fees—Class C | 18,693 | |||
Distribution fees—Class R | 256 | |||
Shareholder servicing fees—Class A | 7,742 | |||
Shareholder servicing fees—Class C | 6,231 | |||
Shareholder servicing fees—Class I | 19,085 | |||
Custodian fees and expenses | 21,806 | |||
Shareholder reporting expenses | 20,744 | |||
Transfer agent fees and expenses | 4,772 | |||
Directors’ fees and expenses | 1,546 | |||
Miscellaneous | 8,058 | |||
|
| |||
Total Expenses | 573,881 | |||
Reduction of Expenses (See Note 2) | (269,256 | ) | ||
|
| |||
Net Expenses | 304,625 | |||
|
| |||
Net Investment Income (Loss) | 1,048,060 | |||
|
| |||
Net Realized and Unrealized Gain (Loss): |
| |||
Net realized gain (loss) on: |
| |||
Investments in securities | 1,474,759 | |||
Written option contracts | (15,194 | ) | ||
Forward foreign currency exchange contracts | 115,099 | |||
Foreign currency transactions | (15,702 | ) | ||
|
| |||
Net realized gain (loss) | 1,558,962 | |||
|
| |||
Net change in unrealized appreciation (depreciation) on: |
| |||
Investments in securities | (5,011,735 | ) | ||
Written option contracts | (46,798 | ) | ||
Forward foreign currency exchange contracts | 136,811 | |||
Foreign currency translations | (3,750 | ) | ||
|
| |||
Net change in unrealized appreciation (depreciation) | (4,925,472 | ) | ||
|
| |||
Net Realized and Unrealized Gain (Loss) | (3,366,510 | ) | ||
|
| |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (2,318,450 | ) | |
|
|
See accompanying notes to financial statements.
34
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
For the Six Months Ended April 30, 2022 | For the Year Ended October 31, 2021 | |||||||
Change in Net Assets: | ||||||||
From Operations: | ||||||||
Net investment income (loss) | $ | 1,048,060 | $ | 1,853,525 | ||||
Net realized gain (loss) | 1,558,962 | 10,721,631 | ||||||
Net change in unrealized appreciation (depreciation) | (4,925,472 | ) | 7,488,649 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (2,318,450 | ) | 20,063,805 | |||||
|
|
|
| |||||
Distributions to Shareholders: | ||||||||
Class A | (274,069 | ) | (526,899 | ) | ||||
Class C | (72,935 | ) | (141,126 | ) | ||||
Class I | (1,106,551 | ) | (1,684,089 | ) | ||||
Class R | (1,735 | ) | (2,872 | ) | ||||
Class Z | (1,772 | ) | (2,724 | ) | ||||
Tax Return of Capital to Shareholders: | ||||||||
Class A | — | (185,836 | ) | |||||
Class C | — | (62,324 | ) | |||||
Class I | — | (543,643 | ) | |||||
Class R | — | (1,066 | ) | |||||
Class Z | — | (1,117 | ) | |||||
|
|
|
| |||||
Total distributions | (1,457,062 | ) | (3,151,696 | ) | ||||
|
|
|
| |||||
Capital Stock Transactions: | ||||||||
Increase (decrease) in net assets from Fund share transactions | 3,593,241 | (8,213,196 | ) | |||||
|
|
|
| |||||
Total increase (decrease) in net assets | (182,271 | ) | 8,698,913 | |||||
Net Assets: | ||||||||
Beginning of period | 78,183,796 | 69,484,883 | ||||||
|
|
|
| |||||
End of period | $ | 78,001,525 | $ | 78,183,796 | ||||
|
|
|
|
See accompanying notes to financial statements.
35
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)
The following tables include selected data for a share outstanding throughout each period and other performance information derived from the financial statements. They should be read in conjunction with the financial statements and notes thereto.
Class A | ||||||||||||||||||||||||||||
For the Six Months Ended April 30, 2022 | For the Year Ended October 31, | For the Period March 1, 2019 through October 31, 2019a | For the Year Ended February 28, | |||||||||||||||||||||||||
Per Share Operating Data: | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||
Net asset value, beginning of period | $12.15 | $9.54 | $11.85 | $13.33 | $15.16 | $15.50 | $13.30 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss)b | 0.15 | 0.28 | 0.29 | 0.17 | 0.17 | 0.17 | 0.18 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | (0.51 | ) | 2.82 | (2.02 | ) | 0.59 | 0.15 | 1.42 | 3.56 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total from investment operations | (0.36 | ) | 3.10 | (1.73 | ) | 0.76 | 0.32 | 1.59 | 3.74 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Less dividends and distributions to shareholders from: | ||||||||||||||||||||||||||||
Net investment income | (0.21 | ) | (0.36 | ) | (0.38 | ) | (0.23 | ) | (0.17 | ) | (0.17 | ) | (0.18 | ) | ||||||||||||||
Net realized gain | — | — | — | (2.01 | ) | (1.98 | ) | (1.76 | ) | (1.36 | ) | |||||||||||||||||
Tax return of capital | — | (0.13 | ) | (0.20 | ) | — | — | — | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total dividends and distributions to shareholders | (0.21 | ) | (0.49 | ) | (0.58 | ) | (2.24 | ) | (2.15 | ) | (1.93 | ) | (1.54 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net increase (decrease) in net asset value | (0.57 | ) | 2.61 | (2.31 | ) | (1.48 | ) | (1.83 | ) | (0.34 | ) | 2.20 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net asset value, end of period | $11.58 | $12.15 | $9.54 | $11.85 | $13.33 | $15.16 | $15.50 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total returnc,d | –2.99 | %e | 32.91 | % | –14.74 | % | 5.90 | %e | 2.59 | % | 10.81 | % | 28.76 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
See accompanying notes to financial statements.
36
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
Class A | ||||||||||||||||||||||||||||
For the Six Months Ended April 30, 2022 | For the Year Ended October 31, | For the Period March 1, 2019 through October 31, 2019a | For the Year Ended February 28, | |||||||||||||||||||||||||
Ratios/Supplemental Data: | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||
Net assets, end of period (in millions) | $15.3 | $16.2 | $16.2 | $21.1 | $19.8 | $18.5 | $19.6 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Ratios to average daily net assets: | ||||||||||||||||||||||||||||
Expenses (before expense reduction) | 1.64 | %f | 1.66 | % | 1.67 | % | 1.79 | %g | 1.40 | % | 1.25 | % | 1.31 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Expenses (net of expense reduction) | 1.00 | %f | 1.00 | % | 1.00 | % | 1.00 | %g | 1.00 | % | 1.00 | % | 1.00 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss) | 1.85 | %f | 1.74 | % | 2.15 | % | 1.27 | %g | 0.80 | % | 0.85 | % | 0.92 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss) | 2.49 | %f | 2.40 | % | 2.82 | % | 2.06 | %g | 1.20 | % | 1.10 | % | 1.23 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Portfolio turnover rate | 45 | %e | 138 | % | 143 | % | 178 | %e | 158 | % | 102 | % | 70 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a | The Fund has changed its fiscal year end from February 28 to October 31. |
b | Calculation based on average shares outstanding. |
c | Return assumes the reinvestment of all dividends and distributions at net asset value. |
d | Does not reflect sales charges, which would reduce return. |
e | Not annualized. |
f | Annualized. |
g | Ratios for periods less than one year are annualized. Certain professional, shareholder reporting and non-recurring expenses incurred by the Fund are not annualized for periods less than one year. |
See accompanying notes to financial statements.
37
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
Class C | ||||||||||||||||||||||||||||
For the Six Months Ended April 30, 2022 | For the Year Ended October 31, | For the Period March 1, 2019 through October 31, 2019a | For the Year Ended February 28, | |||||||||||||||||||||||||
Per Share Operating Data: | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||
Net asset value, beginning of period | $12.05 | $9.47 | $11.76 | $13.22 | $15.04 | $15.38 | $13.20 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss)b | 0.11 | 0.20 | 0.23 | 0.11 | 0.07 | 0.07 | 0.09 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | (0.51 | ) | 2.79 | (2.01 | ) | 0.59 | 0.15 | 1.41 | 3.53 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total from investment operations | (0.40 | ) | 2.99 | (1.78 | ) | 0.70 | 0.22 | 1.48 | 3.62 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Less dividends and distributions to shareholders from: | ||||||||||||||||||||||||||||
Net investment income | (0.17 | ) | (0.28 | ) | (0.31 | ) | (0.15 | ) | (0.06 | ) | (0.06 | ) | (0.08 | ) | ||||||||||||||
Net realized gain | — | — | — | (2.01 | ) | (1.98 | ) | (1.76 | ) | (1.36 | ) | |||||||||||||||||
Tax return of capital | — | (0.13 | ) | (0.20 | ) | — | — | — | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total dividends and distributions to shareholders | (0.17 | ) | (0.41 | ) | (0.51 | ) | (2.16 | ) | (2.04 | ) | (1.82 | ) | (1.44 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net increase (decrease) in net asset value | (0.57 | ) | 2.58 | (2.29 | ) | (1.46 | ) | (1.82 | ) | (0.34 | ) | 2.18 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net asset value, end of period | $11.48 | $12.05 | $9.47 | $11.76 | $13.22 | $15.04 | $15.38 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total returnc,d | –3.33 | %e | 31.96 | % | –15.25 | % | 5.39 | %e | 1.95 | % | 10.11 | % | 27.97 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
See accompanying notes to financial statements.
38
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
Class C | ||||||||||||||||||||||||||||
For the Six Months Ended April 30, 2022 | For the Year Ended October 31, | For the Period March 1, 2019 through October 31, 2019a | For the Year Ended February 28, | |||||||||||||||||||||||||
Ratios/Supplemental Data: | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||
Net assets, end of period (in millions) | $4.9 | $5.1 | $5.6 | $6.6 | $12.6 | $18.1 | $26.7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Ratios to average daily net assets: | ||||||||||||||||||||||||||||
Expenses (before | 2.29 | %f | 2.31 | % | 2.32 | % | 2.44 | %g | 2.05 | % | 1.90 | % | 1.96 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Expenses (net of | 1.65 | %f | 1.65 | % | 1.65 | % | 1.65 | %g | 1.65 | % | 1.65 | % | 1.65 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss) | 1.18 | %f | 1.10 | % | 1.52 | % | 0.52 | %g | 0.13 | % | 0.18 | % | 0.27 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss) | 1.82 | %f | 1.76 | % | 2.19 | % | 1.31 | %g | 0.53 | % | 0.43 | % | 0.58 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Portfolio turnover rate | 45 | %e | 138 | % | 143 | % | 178 | %e | 158 | % | 102 | % | 70 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a | The Fund has changed its fiscal year end from February 28 to October 31. |
b | Calculation based on average shares outstanding. |
c | Return assumes the reinvestment of all dividends and distributions at net asset value. |
d | Does not reflect sales charges, which would reduce return. |
e | Not annualized. |
f | Annualized. |
g | Ratios for periods less than one year are annualized. Certain professional, shareholder reporting and non-recurring expenses incurred by the Fund are not annualized for periods less than one year. |
See accompanying notes to financial statements.
39
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
Class I | ||||||||||||||||||||||||||||
For the Six Months Ended April 30, 2022 | For the Year Ended October 31, | For the Period March 1, 2019 through October 31, 2019a | For the Year Ended February 28, | |||||||||||||||||||||||||
Per Share Operating Data: | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||
Net asset value, beginning of period | $12.18 | $9.57 | $11.88 | $13.36 | $15.19 | $15.53 | $13.32 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss)b | 0.17 | 0.31 | 0.33 | 0.20 | 0.22 | 0.22 | 0.23 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | (0.51 | ) | 2.83 | (2.02 | ) | 0.60 | 0.15 | 1.42 | 3.57 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total from investment operations | (0.34 | ) | 3.14 | (1.69 | ) | 0.80 | 0.37 | 1.64 | 3.80 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Less dividends and distributions to shareholders from: | ||||||||||||||||||||||||||||
Net investment income | (0.23 | ) | (0.40 | ) | (0.42 | ) | (0.27 | ) | (0.22 | ) | (0.22 | ) | (0.23 | ) | ||||||||||||||
Net realized gain | — | — | — | (2.01 | ) | (1.98 | ) | (1.76 | ) | (1.36 | ) | |||||||||||||||||
Tax return of capital | — | (0.13 | ) | (0.20 | ) | — | — | — | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total dividends and distributions to shareholders | (0.23 | ) | (0.53 | ) | (0.62 | ) | (2.28 | ) | (2.20 | ) | (1.98 | ) | (1.59 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net increase (decrease) in net asset value | (0.57 | ) | 2.61 | (2.31 | ) | (1.48 | ) | (1.83 | ) | (0.34 | ) | 2.21 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net asset value, end of period | $11.61 | $12.18 | $9.57 | $11.88 | $13.36 | $15.19 | $15.53 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total returnc | –2.81 | %d | 33.27 | % | –14.41 | % | 6.18 | %d | 2.96 | % | 11.18 | % | 29.24 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
See accompanying notes to financial statements.
40
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
Class I | ||||||||||||||||||||||||||||
For the Six Months Ended April 30, 2022 | For the Year Ended October 31, | For the Period March 1, 2019 through October 31, 2019a | For the Year Ended February 28, | |||||||||||||||||||||||||
Ratios/Supplemental Data: | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||
Net assets, end of period (in millions) | $57.6 | $56.7 | $47.6 | $40.2 | $28.0 | $57.8 | $143.5 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Ratios to average daily net assets: | ||||||||||||||||||||||||||||
Expenses (before expense reduction) | 1.36 | %e | 1.38 | % | 1.38 | % | 1.51 | %f | 1.09 | % | 0.96 | % | 1.01 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Expenses (net of expense reduction) | 0.65 | %e | 0.65 | % | 0.65 | % | 0.65 | %f | 0.65 | % | 0.65 | % | 0.65 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss) | 2.12 | %e | 1.99 | % | 2.47 | % | 1.64 | %f | 1.09 | % | 1.11 | % | 1.23 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss) | 2.83 | %e | 2.72 | % | 3.20 | % | 2.50 | %f | 1.53 | % | 1.42 | % | 1.59 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Portfolio turnover rate | 45 | %d | 138 | % | 143 | % | 178 | %d | 158 | % | 102 | % | 70 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a | The Fund has changed its fiscal year end from February 28 to October 31. |
b | Calculation based on average shares outstanding. |
c | Return assumes the reinvestment of all dividends and distributions at net asset value. |
d | Not annualized. |
e | Annualized. |
f | Ratios for periods less than one year are annualized. Certain professional, shareholder reporting and non-recurring expenses incurred by the Fund are not annualized for periods less than one year. |
See accompanying notes to financial statements.
41
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
Class R | ||||||||||||||||||||||||||||
For the Six Months Ended April 30, 2022 | For the Year Ended October 31, | For the Period March 1, 2019 through October 31, 2019a | For the Year Ended February 28, | |||||||||||||||||||||||||
Per Share Operating Data: | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||
Net asset value, beginning of period | $12.17 | $9.56 | $11.87 | $13.34 | $15.17 | $15.51 | $13.31 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss)b | 0.14 | 0.26 | 0.28 | 0.16 | 0.15 | 0.15 | 0.15 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | (0.51 | ) | 2.82 | (2.02 | ) | 0.59 | 0.14 | 1.41 | 3.57 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total from investment operations | (0.37 | ) | 3.08 | (1.74 | ) | 0.75 | 0.29 | 1.56 | 3.72 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Less dividends and distributions to shareholders from: | ||||||||||||||||||||||||||||
Net investment income | (0.20 | ) | (0.34 | ) | (0.37 | ) | (0.21 | ) | (0.14 | ) | (0.14 | ) | (0.16 | ) | ||||||||||||||
Net realized gain | — | — | — | (2.01 | ) | (1.98 | ) | (1.76 | ) | (1.36 | ) | |||||||||||||||||
Tax return of capital | — | (0.13 | ) | (0.20 | ) | — | — | — | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total dividends and distributions to shareholders | (0.20 | ) | (0.47 | ) | (0.57 | ) | (2.22 | ) | (2.12 | ) | (1.90 | ) | (1.52 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net increase (decrease) in net asset value | (0.57 | ) | 2.61 | (2.31 | ) | (1.47 | ) | (1.83 | ) | (0.34 | ) | 2.20 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net asset value, end of period | $11.60 | $12.17 | $9.56 | $11.87 | $13.34 | $15.17 | $15.51 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total returnc | –3.06 | %d | 32.64 | % | –14.85 | % | 5.81 | %d | 2.43 | % | 10.63 | % | 28.61 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
See accompanying notes to financial statements.
42
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
Class R | ||||||||||||||||||||||||||||
For the Six Months Ended April 30, 2022 | For the Year Ended October 31, | For the Period March 1, 2019 through October 31, 2019a | For the Year Ended February 28, | |||||||||||||||||||||||||
Ratios/Supplemental Data: | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||
Net assets, end of period (in 000s) | $100.8 | $104.1 | $78.7 | $82.9 | $96.9 | $90.4 | $64.8 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Ratios to average daily net assets: | ||||||||||||||||||||||||||||
Expenses (before expense reduction) | 1.79 | %e | 1.81 | % | 1.82 | % | 1.94 | %f | 1.55 | % | 1.40 | % | 1.46 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Expenses (net of expense reduction) | 1.15 | %e | 1.15 | % | 1.15 | % | 1.15 | %f | 1.15 | % | 1.15 | % | 1.15 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss) | 1.69 | %e | 1.56 | % | 2.00 | % | 1.11 | %f | 0.67 | % | 0.70 | % | 0.71 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss) | 2.33 | %e | 2.22 | % | 2.67 | % | 1.90 | %f | 1.07 | % | 0.95 | % | 1.02 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Portfolio turnover rate | 45 | %d | 138 | % | 143 | % | 178 | %d | 158 | % | 102 | % | 70 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a | The Fund has changed its fiscal year end from February 28 to October 31. |
b | Calculation based on average shares outstanding. |
c | Return assumes the reinvestment of all dividends and distributions at net asset value. |
d | Not annualized. |
e | Annualized. |
f | Ratios for periods less than one year are annualized. Certain professional, shareholder reporting and non-recurring expenses incurred by the Fund are not annualized for periods less than one year. |
See accompanying notes to financial statements.
43
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
Class Z | ||||||||||||||||||||||||||||
For the Six Months Ended April 30, 2022 | For the Year Ended October 31, | For the Period March 1, 2019 through October 31, 2019a | For the Year Ended February 28, | |||||||||||||||||||||||||
Per Share Operating Data: | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||
Net asset value, beginning of period | $12.18 | $9.57 | $11.88 | $13.36 | $15.19 | $15.53 | $13.32 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss)b | 0.17 | 0.28 | 0.41 | 0.20 | 0.22 | 0.22 | 0.23 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | (0.51 | ) | 2.86 | (2.10 | ) | 0.60 | 0.15 | 1.42 | 3.57 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total from investment operations | (0.34 | ) | 3.14 | (1.69 | ) | 0.80 | 0.37 | 1.64 | 3.80 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Less dividends and distributions to shareholders from: | ||||||||||||||||||||||||||||
Net investment income | (0.23 | ) | (0.40 | ) | (0.42 | ) | (0.27 | ) | (0.22 | ) | (0.22 | ) | (0.23 | ) | ||||||||||||||
Net realized gain | — | — | — | (2.01 | ) | (1.98 | ) | (1.76 | ) | (1.36 | ) | |||||||||||||||||
Tax return of capital | — | (0.13 | ) | (0.20 | ) | — | — | — | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total dividends and distributions to shareholders | (0.23 | ) | (0.53 | ) | (0.62 | ) | (2.28 | ) | (2.20 | ) | (1.98 | ) | (1.59 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net increase (decrease) in net asset value | (0.57 | ) | 2.61 | (2.31 | ) | (1.48 | ) | (1.83 | ) | (0.34 | ) | 2.21 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net asset value, end of period | $11.61 | $12.18 | $9.57 | $11.88 | $13.36 | $15.19 | $15.53 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total returnc | –2.81 | %d | 33.27 | % | –14.41 | % | 6.17 | %d | 2.96 | % | 11.18 | % | 29.24 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
See accompanying notes to financial statements.
44
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
Class Z | ||||||||||||||||||||||||||||
For the Six Months Ended April 30, 2022 | For the Year Ended October 31, | For the Period March 1, 2019 through October 31, 2019a | For the Year Ended February 28, | |||||||||||||||||||||||||
Ratios/Supplemental Data: | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||
Net assets, end of period (in 000s) | $83.5 | $96.3 | $21.2 | $7.2 | $8.1 | $9.2 | $9.4 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Ratios to average daily net assets: | ||||||||||||||||||||||||||||
Expenses (before | 1.29 | %e | 1.31 | % | 1.32 | % | 1.44 | %f | 1.05 | % | 0.90 | % | 0.96 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Expenses (net of | 0.65 | %e | 0.65 | % | 0.65 | % | 0.65 | %f | 0.65 | % | 0.65 | % | 0.65 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss) | 2.20 | %e | 1.88 | % | 3.25 | % | 1.62 | %f | 1.14 | % | 1.18 | % | 1.27 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Net investment income (loss) | 2.84 | %e | 2.54 | % | 3.92 | % | 2.41 | %f | 1.54 | % | 1.43 | % | 1.58 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Portfolio turnover rate | 45 | %d | 138 | % | 143 | % | 178 | %d | 158 | % | 102 | % | 70 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a | The Fund has changed its fiscal year end from February 28 to October 31. |
b | Calculation based on average shares outstanding. |
c | Return assumes the reinvestment of all dividends and distributions at net asset value. |
d | Not annualized. |
e | Annualized. |
f | Ratios for periods less than one year are annualized. Certain professional, shareholder reporting and non-recurring expenses incurred by the Fund are not annualized for periods less than one year. |
See accompanying notes to financial statements.
45
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Note 1. Organization and Significant Accounting Policies
Cohen & Steers Alternative Income Fund, Inc. (the Fund) was incorporated under the laws of the State of Maryland on November 8, 2004 and is registered under the Investment Company Act of 1940 (the 1940 Act) as a diversified, open-end management investment company. The investment objectives of the Fund are to seek a high level of current income and capital appreciation. Each of the Fund’s shares has equal dividend, liquidation and voting rights (except for matters relating to distribution and shareholder servicing of such shares). Class F shares are currently not available for purchase.
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The Fund is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 946—Investment Companies. The accounting policies of the Fund are in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Portfolio Valuation: Investments in securities that are listed on the New York Stock Exchange (NYSE) are valued, except as indicated below, at the last sale price reflected at the close of the NYSE on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the closing bid and ask prices on such day or, if no ask price is available, at the bid price. Forward foreign currency exchange contracts are valued daily at the prevailing forward exchange rate. Exchange-traded options are valued at their last sale price as of the close of options trading on applicable exchanges on the valuation date. In the absence of a last sale price on such day, options are valued at the average of the quoted bid and ask prices as of the close of business. Over-the-counter (OTC) options are valued based upon prices provided by a third-party pricing service or counterparty.
Securities not listed on the NYSE but listed on other domestic or foreign securities exchanges (including NASDAQ) are valued in a similar manner. Securities traded on more than one securities exchange are valued at the last sale price reflected at the close of the exchange representing the principal market for such securities on the business day as of which such value is being determined. If after the close of a foreign market, but prior to the close of business on the day the securities are being valued, market conditions change significantly, certain non-U.S. equity holdings may be fair valued pursuant to procedures established by the Board of Directors.
Readily marketable securities traded in the OTC market, including listed securities whose primary market is believed by Cohen & Steers Capital Management, Inc. (the investment advisor) to be OTC, are valued on the basis of prices provided by a third-party pricing service or third-party broker-dealers when such prices are believed by the investment advisor, pursuant to delegation by the Board of Directors, to reflect the fair value of such securities.
Fixed-income securities are valued on the basis of prices provided by a third-party pricing service or third-party broker-dealers when such prices are believed by the investment advisor, pursuant to
46
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
delegation by the Board of Directors, to reflect the fair value of such securities. The pricing services or broker-dealers use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services or broker-dealers may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services or broker-dealers also utilize proprietary valuation models which may consider market transactions in comparable securities and the various relationships between securities in determining fair value and/or characteristics such as benchmark yield curves, option-adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features which are then used to calculate the fair values.
Short-term debt securities with a maturity date of 60 days or less are valued at amortized cost, which approximates fair value. Investments in open-end mutual funds are valued at net asset value (NAV).
The policies and procedures approved by the Fund’s Board of Directors delegate authority to make fair value determinations to the investment advisor, subject to the oversight of the Board of Directors. The investment advisor has established a valuation committee (Valuation Committee) to administer, implement and oversee the fair valuation process according to the policies and procedures approved annually by the Board of Directors. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities for which market prices are unavailable, or securities for which the investment advisor determines that the bid and/or ask price or a counterparty valuation does not reflect market value, will be valued at fair value, as determined in good faith by the Valuation Committee, pursuant to procedures approved by the Fund’s Board of Directors. Circumstances in which market prices may be unavailable include, but are not limited to, when trading in a security is suspended, the exchange on which the security is traded is subject to an unscheduled close or disruption or material events occur after the close of the exchange on which the security is principally traded. In these circumstances, the Fund determines fair value in a manner that fairly reflects the market value of the security on the valuation date based on consideration of any information or factors it deems appropriate. These may include, but are not limited to, recent transactions in comparable securities, information relating to the specific security and developments in the markets.
Foreign equity fair value pricing procedures utilized by the Fund may cause certain non-U.S. equity holdings to be fair valued on the basis of fair value factors provided by a pricing service to reflect any significant market movements between the time the Fund values such securities and the earlier closing of foreign markets.
The Fund’s use of fair value pricing may cause the NAV of Fund shares to differ from the NAV that would be calculated using market quotations. Fair value pricing involves subjective judgments and it is possible that the fair value determined for a security may be materially different than the value that could be realized upon the sale of that security.
47
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
Fair value is defined as the price that the Fund would expect to receive upon the sale of an investment or expect to pay to transfer a liability in an orderly transaction with an independent buyer in the principal market or, in the absence of a principal market, the most advantageous market for the investment or liability. The hierarchy of inputs that are used in determining the fair value of the Fund’s investments is summarized below.
• | Level 1—quoted prices in active markets for identical investments |
• | Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.) |
• | Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing investments may or may not be an indication of the risk associated with those investments. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the inputs used as of April 30, 2022 in valuing the Fund’s investments carried at value:
Total | Quoted Prices in Active Markets for Identical Investments (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Closed-End Funds | $ | 1,011,898 | $ | 1,011,898 | $ | — | $ | — | ||||||||
Common Stock: | ||||||||||||||||
Airports—Foreign | 458,234 | — | 458,234 | — | ||||||||||||
Communications | 5,129,720 | 4,330,238 | 799,482 | — | ||||||||||||
Electric—Foreign | 1,168,356 | 238,013 | 930,343 | — | ||||||||||||
Energy | 1,526,334 | 945,882 | 580,452 | — | ||||||||||||
Infrastructure—Foreign | 148,832 | — | 148,832 | — | ||||||||||||
Marine Ports—Foreign | 554,223 | 213,772 | 340,451 | — | ||||||||||||
Materials | 2,033,057 | 896,429 | 1,136,628 | — | ||||||||||||
Railways—Foreign | 542,725 | — | 542,725 | — | ||||||||||||
Real Estate | 11,685,941 | 7,551,442 | 4,134,499 | — | ||||||||||||
Toll Roads—Foreign | 1,607,569 | — | 1,607,569 | — | ||||||||||||
Utilities | 4,303,707 | 3,519,747 | 783,960 | — | ||||||||||||
Other | 8,925,883 | 8,925,883 | — | — | ||||||||||||
Master Limited Partnerships and Related Companies | 171,495 | 171,495 | — | — | ||||||||||||
Preferred Securities— | 4,734,488 | 4,734,488 | — | — |
48
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
Total | Quoted Prices in Active Markets for Identical Investments (Level 1) | Other Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Preferred Securities—Capital Securities | $ | 31,074,097 | $ | — | $ | 31,074,097 | $ | — | ||||||||
Short-Term Investments | 1,892,684 | — | 1,892,684 | — | ||||||||||||
Purchased Option Contracts | 95,839 | — | 95,839 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securitiesa | $ | 77,065,082 | $ | 32,539,287 | $ | 44,525,795 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Forward Foreign Currency Exchange Contracts | $ | 137,495 | $ | — | $ | 137,495 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total Derivative Assetsa | $ | 137,495 | $ | — | $ | 137,495 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Forward Foreign Currency Exchange Contracts | $ | (14,884 | ) | $ | — | $ | (14,884 | ) | $ | — | ||||||
Written Option Contracts | (133,720 | ) | — | (133,720 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Derivative Liabilitiesa | $ | (148,604 | ) | $ | — | $ | (148,604 | ) | $ | — | ||||||
|
|
|
|
|
|
|
|
(a) | Portfolio holdings are disclosed individually on the Schedule of Investments. |
Security Transactions, Investment Income and Expense Allocations: Security transactions are recorded on trade date. Realized gains and losses on investments sold are recorded on the basis of identified cost. Interest income, which includes the amortization of premiums and accretion of discounts, is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date, except for certain dividends on foreign securities, which are recorded as soon as the Fund is informed after the ex-dividend date. Distributions from Real Estate Investment Trusts (REITs) are recorded as ordinary income, net realized capital gain or return of capital based on information reported by the REITs and management’s estimates of such amounts based on historical information. These estimates are adjusted when the actual source of distributions is disclosed by the REITs and actual amounts may differ from the estimated amounts. Distributions from Master Limited Partnerships (MLPs) are recorded as income and return of capital based on information reported by the MLPs and management’s estimates of such amounts based on historical information. These estimates are adjusted when the actual source of distributions is disclosed by the MLPs and actual amounts may differ from the estimated amounts. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.
Master Limited Partnerships: Entities commonly referred to as MLPs are generally organized under state law as limited partnerships or limited liability companies. The Fund invests in MLPs receiving partnership taxation treatment under the Internal Revenue Code of 1986, as amended (the Code), and whose interest or “units” are traded on securities exchanges like shares of corporate stock. To be treated as a partnership for U.S. federal income tax purposes, an MLP whose units are traded on a
49
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
securities exchange must receive at least 90% of its income from qualifying sources such as interest, dividends, real property rents, gains on dispositions of real property, income and gains from mineral or natural resources activities, income and gains from the transportation or storage of certain fuels, and, in certain circumstances, income and gains from commodities or futures, forwards and options on commodities. Mineral or natural resources activities include exploration, development, production, processing, mining, refining, marketing and transportation (including pipelines) of oil and gas, minerals, geothermal energy, fertilizer, timber or industrial source carbon dioxide. An MLP consists of a general partner and limited partners (or in the case of MLPs organized as limited liability companies, a managing member and members). The general partner or managing member typically controls the operations and management of the MLP and has an ownership stake in the partnership or limited liability company. The limited partners or members, through their ownership of limited partner or member interests, provide capital to the entity, are intended to have no role in the operation and management of the entity and receive cash distributions. The Fund’s investments in MLPs consist only of limited partner or member interests ownership. The MLPs themselves generally do not pay U.S. federal income taxes and unlike investors in corporate securities, direct MLP investors are generally not subject to double taxation (i.e., corporate level tax and tax on corporate dividends). Currently, most MLPs operate in the energy and/or natural resources sector.
Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollars based upon prevailing exchange rates on the respective dates of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments in securities.
Net realized foreign currency transaction gains or losses arise from sales of foreign currencies, (excluding gains and losses on forward foreign currency exchange contracts, which are presented separately, if any), currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency translation gains and losses arise from changes in the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates. Pursuant to U.S. federal income tax regulations, certain foreign currency gain/loss included in realized and unrealized gains/losses are included in or are a reduction of ordinary income for federal income tax purposes.
Forward Foreign Currency Exchange Contracts: The Fund enters into forward foreign currency exchange contracts to hedge the currency exposure associated with certain of its non-U.S. dollar denominated securities. A forward foreign currency exchange contract is a commitment between two parties to purchase or sell foreign currency at a set price on a future date. The market value of a forward foreign currency exchange contract fluctuates with changes in foreign currency exchange rates. These
50
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
contracts are marked to market daily and the change in value is recorded by the Fund as unrealized appreciation and/or depreciation on forward foreign currency exchange contracts. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are included in net realized gain or loss on forward foreign currency exchange contracts. For federal income tax purposes, the Fund has made an election to treat gains and losses from forward foreign currency exchange contracts as capital gains and losses.
Forward foreign currency exchange contracts involve elements of market risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the contract. Risks may also arise upon entering these contracts from the potential inability of the counterparties to meet the terms of their contracts. In connection with these contracts, securities may be identified as collateral in accordance with the terms of the respective contracts.
Option Contracts: The Fund may purchase and write exchange-listed and OTC put or call options on securities, stock indices and other financial instruments for hedging purposes, to enhance portfolio returns and/or reduce overall volatility.
When the Fund writes (sells) an option, an amount equal to the premium received by the Fund is recorded on the Statement of Assets and Liabilities as a liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. When an option expires, the Fund realizes a gain on the option to the extent of the premium received. Premiums received from writing options which are exercised or closed are added to or offset against the proceeds or amount paid on the transaction to determine the realized gain or loss. If a put option on a security is exercised, the premium reduces the cost basis of the security purchased by the Fund. If a call option is exercised, the premium is added to the proceeds of the security sold to determine the realized gain or loss. The Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the underlying investment. Other risks include the possibility of an illiquid options market or the inability of the counterparties to fulfill their obligations under the contracts.
Put and call options purchased are accounted for in the same manner as portfolio securities. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain or loss when the underlying transaction is executed. The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract.
Interest Rate Swaption Contracts: The Fund may write or purchase interest rate swaptions, which are options to enter into a pre-defined swap agreement at a specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises the swaption. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise.
Dividends and Distributions to Shareholders: Dividends from net investment income and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may
51
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
differ from GAAP. Dividends from net investment income, if any, are declared and paid monthly. Net realized capital gains, unless offset by any available capital loss carryforward, are typically distributed to shareholders at least annually. Dividends and distributions to shareholders are recorded on the ex-dividend date and are automatically reinvested in full and fractional shares of the Fund based on the NAV per share at the close of business on the payable date, unless the shareholder has elected to have them paid in cash.
Dividends from net investment income are subject to recharacterization for tax purposes. Based upon the results of operations for the six months ended April 30, 2022, the investment advisor considers it likely that a portion of the dividends will be classified as a tax return of capital upon the final determination of the Fund’s taxable income after October 31, 2022, the Fund’s fiscal year end.
Income Taxes: It is the policy of the Fund to continue to qualify as a regulated investment company (RIC), if such qualification is in the best interest of the shareholders, by complying with the requirements of Subchapter M of the Internal Revenue Code applicable to RICs, and by distributing substantially all of its taxable earnings to its shareholders. Also, in order to avoid the payment of any federal excise taxes, the Fund will distribute substantially all of its net investment income and net realized gains on a calendar year basis. Accordingly, no provision for federal income or excise tax is necessary. Dividend and interest income from holdings in non-U.S. securities is recorded net of non-U.S. taxes paid. Management has analyzed the Fund’s tax positions taken on federal and applicable state income tax returns as well as its tax positions in non-U.S. jurisdictions in which it trades for all open tax years and has concluded that as of April 30, 2022, no additional provisions for income tax are required in the Fund’s financial statements. The Fund’s tax positions for the tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service, state departments of revenue and by foreign tax authorities.
Note 2. Investment Advisory Fees, Administration Fees and Other Transactions with Affiliates
Investment Advisory Fees: Cohen & Steers Capital Management, Inc. serves as the Fund’s investment advisor pursuant to an investment advisory agreement (the investment advisory agreement). Under the terms of the investment advisory agreement, the investment advisor provides the Fund with day-to-day investment decisions and generally manages the Fund’s investments in accordance with the stated policies of the Fund, subject to the supervision of the Board of Directors.
For the services provided to the Fund, the investment advisor receives a fee, accrued daily and paid monthly, at an annual rate of 0.70% of the average daily net assets of the Fund.
For the six months ended April 30, 2022 and through June 30, 2023, the investment advisor has contractually agreed to waive its fee and/or reimburse expenses so that the Fund’s total annual operating expenses (excluding acquired fund fees and expenses, taxes and extraordinary expenses), do not exceed 1.00% for Class A shares, 1.65% for Class C shares, 0.65% for Class I shares, 1.15% for Class R shares and 0.65% for Class Z shares. This contractual agreement can be amended at any time by agreement of the Board of Directors of the Fund and the investment advisor and will terminate automatically in the event of termination of the investment advisory agreement between the Fund and
52
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
the investment advisor. For the six months ended April 30, 2022, fees waived and/or expenses reimbursed totaled $269,256.
Under subadvisory agreements between the investment advisor and each of Cohen & Steers Asia Limited and Cohen & Steers UK Limited (collectively, the subadvisors), affiliates of the investment advisor, the subadvisors are responsible for managing the Fund’s investments in certain non-U.S. holdings. For their services provided under the subadvisory agreements, the investment advisor (not the Fund) pays the subadvisors. The investment advisor allocates 50% of the investment advisory fee received from the Fund among itself and each subadvisor based on the portion of the Fund’s average daily net assets managed by the investment advisor and each subadvisor.
Administration Fees: The Fund has entered into an administration agreement with the investment advisor under which the investment advisor performs certain administrative functions for the Fund and receives a fee, accrued daily and paid monthly, at the annual rate of 0.02% of the average daily net assets of the Fund. For the six months ended April 30, 2022, the Fund incurred $7,764 in fees under this administration agreement. Additionally, the Fund pays State Street Bank and Trust Company as co-administrator under a fund accounting and administration agreement.
Distribution Fees: Shares of the Fund are distributed by Cohen & Steers Securities, LLC (the distributor), an affiliated entity of the investment advisor. The Fund has adopted an amended distribution and service plan (the plan) pursuant to Rule 12b-1 under the 1940 Act, which allows the Fund to pay distribution fees for the sale and distribution of its shares. The plan provides that the Fund will pay the distributor a fee, accrued daily and paid monthly, at an annual rate of up to 0.25% of the average daily net assets attributable to Class A shares, up to 0.75% of the average daily net assets attributable to Class C shares and up to 0.50% of the average daily net assets attributable to Class R shares. In addition, with respect to Class R shares, such amounts may also be used to pay for services to Fund shareholders or services related to the maintenance of shareholder accounts.
There is a maximum initial sales charge of 4.50% for Class A shares. There is a contingent deferred sales charge (CDSC) of 1.00% on purchases of $1 million or more of Class A shares, which applies if redemption occurs within one year from purchase. There is a CDSC of 1.00% on Class C shares, which applies if redemption occurs within one year from purchase. For the six months ended April 30, 2022, the Fund has been advised that the distributor received $2,763, which represents a portion of the sales commissions paid by shareholders from the sale of Class A shares. The distributor has advised the Fund that proceeds from the CDSC on these classes are used by the distributor to defray its expenses related to providing distribution-related services to the Fund in connection with the sale of these classes, including payments to dealers and other financial intermediaries for selling these classes. The payment of a CDSC may result in the distributor receiving amounts greater or less than the upfront commission paid by the distributor to the financial intermediary.
Shareholder Servicing Fees: For shareholder services, the Fund pays the distributor or its affiliates a fee, accrued daily, at an annual rate of up to 0.10% of the average daily net assets of the Fund’s Class A and Class I shares and up to 0.25% of the average daily net assets of the Fund’s Class C shares. The distributor is responsible for paying qualified financial institutions for shareholder services.
53
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
Directors’ and Officers’ Fees: Certain directors and officers of the Fund are also directors, officers and/or employees of the investment advisor. The Fund does not pay compensation to directors and officers affiliated with the investment advisor except for the Chief Compliance Officer, who received compensation from the investment advisor, which was reimbursed by the Fund, in the amount of $208 for the six months ended April 30, 2022.
Note 3. Purchases and Sales of Securities
Purchases and sales of securities, excluding short-term investments, for the six months ended April 30, 2022, totaled $36,607,132 and $34,025,885, respectively.
Note 4. Derivative Investments
The following tables present the value of derivatives held at April 30, 2022 and the effect of derivatives held during the six months ended April 30, 2022, along with the respective location in the financial statements.
Statement of Assets and Liabilities
Assets | Liabilities | |||||||||||||
Derivatives | Location | Fair Value | Location | Fair Value | ||||||||||
Equity Risk: | ||||||||||||||
Written Option Contracts—Over-the-Counter | — | $ | — | | Written option contracts, at value | $ | 66,820 | |||||||
Foreign Exchange Risk: | ||||||||||||||
Forward Foreign | Unrealized appreciation | 137,495 | Unrealized depreciation | 14,884 | ||||||||||
Interest Rate Risk: | ||||||||||||||
Purchased Option Contracts—Over-the-Counter | Investments in securities, at value | 95,839 | — | — | ||||||||||
Written Option Contracts—Over-the-Counter | — | — | | Written option contracts, at value | 66,900 |
a | Forward foreign currency exchange contracts executed with Brown Brothers Harriman are not subject to a master netting agreement or another similar arrangement. |
54
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
Statement of Operations
Derivatives | Location | Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | |||||||
Equity Risk: | ||||||||||
Written Option Contracts | Net Realized and Unrealized Gain (Loss) | $ | 2,209 | $ | 6,520 | |||||
Foreign Exchange Risk: | ||||||||||
Forward Foreign Currency Exchange Contracts | Net Realized and Unrealized Gain (Loss) | 115,099 | 136,811 | |||||||
Interest Rate Risk: | ||||||||||
Purchased Option Contractsa | Net Realized and Unrealized Gain (Loss) | (34,180 | ) | 68,867 | ||||||
Written Option Contracts | Net Realized and Unrealized Gain (Loss) | (17,403 | ) | (53,318 | ) |
a | Purchased options are included in net realized gain (loss) and change in unrealized appreciation (depreciation) on investments in securities. |
At April 30, 2022, the Fund’s derivative assets and liabilities (by type), which are subject to a master netting agreement, are as follows:
Derivative Financial Instruments | Assets | Liabilities | ||||||
Equity Risk: | ||||||||
Written Option Contracts | $ | — | $ | 66,820 | ||||
Interest Rate Risk: | ||||||||
Purchased Option Contractsa | 95,839 | — | ||||||
Written Option Contracts | — | 66,900 |
a | Purchased options are included in investments in securities, at value on the Statement of Assets & Liabilities. |
The following tables present the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under a master netting agreement and net of the related collateral pledged by the Fund, if any, as of April 30, 2022:
Counterparty | Gross Amount of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments and Derivative Available for Offset | Collateral Receiveda | Net Amount of Derivative Assetsb | ||||||||||||
Goldman Sachs International | $ | 95,839 | $ | (95,839 | ) | $ | — | $ | — |
55
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
Counterparty | Gross Amount of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments and Derivatives Available for Offset | Collateral Pledgeda | Net Amount of Derivative Liabilitiesb | ||||||||||||
Goldman Sachs International | $ | 133,720 | $ | (95,839 | ) | $ | — | $ | 37,881 |
a | Collateral received or pledged is limited to the net derivative asset or net derivative liability amounts. Actual collateral amounts received or pledged may be higher than amounts above. |
b | Net amount represents the net receivable from the counterparty or net payable due to the counterparty in the event of default. |
The following summarizes the volume of the Fund’s option contracts and forward foreign currency exchange contracts activity for the six months ended April 30, 2022:
Purchased Option Contractsa | Written Option Contractsa | Forward Foreign Currency Exchange Contracts | ||||||||||
Average Notional Amount | $ | 1,342,786 | $ | 4,942,138 | $ | 3,299,153 |
a | Notional amount for swaption contracts represents the notional amount of the underlying swap contract. Notional amount for all other option contracts is calculated using the number of contracts multiplied by notional contract size multiplied by the underlying price. |
Note 5. Income Tax Information
As of April 30, 2022, the federal tax cost and net unrealized appreciation (depreciation) in value of investments held were as follows:
Cost of investments in securities for federal income tax purposes | $ | 75,444,926 | ||
|
| |||
Gross unrealized appreciation on investments | $ | 5,212,268 | ||
Gross unrealized depreciation on investments | (3,536,935 | ) | ||
|
| |||
Net unrealized appreciation (depreciation) on investments | $ | 1,675,333 | ||
|
|
As of October 31, 2021, the Fund has a net capital loss carryforward of $7,716,274 which may be used to offset future capital gains. These losses are a long-term capital loss carryforward of $727,337 and short-term capital loss carryforward of $6,988,937, which under current federal income tax rules, may offset capital gains recognized in any future period.
56
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
Note 6. Capital Stock
The Fund is authorized to issue 400 million shares of capital stock, at a par value of $0.001 per share, classified in six classes as follows: 50 million of Class A capital stock, 50 million of Class C capital stock, 50 million of Class F capital stock, 150 million of Class I capital stock, 50 million of Class R capital stock and 50 million of Class Z capital stock. Class F shares are currently not available for purchase. The Board of Directors of the Fund may increase or decrease the aggregate number of shares of common stock that the Fund has authority to issue. With the exception of Class C shares held through certain intermediaries, Class C shares will automatically convert into Class A shares on a monthly basis approximately eight years after the original date of purchase. Transactions in Fund shares were as follows:
For the Six Months Ended April 30, 2022 | For the Year Ended October 31, 2021 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class A: |
| |||||||||||||||
Sold | 94,458 | $ | 1,126,807 | 317,115 | $ | 3,689,412 | ||||||||||
Issued as reinvestment | 15,032 | 178,260 | 41,353 | 469,964 | ||||||||||||
Redeemed | (122,468 | ) | (1,470,385 | ) | (723,865 | ) | (8,240,001 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (12,978 | ) | $ | (165,318 | ) | (365,397 | ) | $ | (4,080,625 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class C: |
| |||||||||||||||
Sold | 51,688 | $ | 613,439 | 25,776 | $ | 295,228 | ||||||||||
Issued as reinvestment of dividends and | 6,149 | 72,332 | 17,961 | 201,529 | ||||||||||||
Redeemed | (54,769 | ) | (643,985 | ) | (213,450 | ) | (2,395,257 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 3,068 | $ | 41,786 | (169,713 | ) | $ | (1,898,500 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class I: |
| |||||||||||||||
Sold | 627,328 | $ | 7,531,261 | 1,622,345 | $ | 18,572,512 | ||||||||||
Issued as reinvestment | 90,964 | 1,081,811 | 189,581 | 2,172,571 | ||||||||||||
Redeemed | (407,287 | ) | (4,889,407 | ) | (2,128,300 | ) | (23,032,225 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 311,005 | $ | 3,723,665 | (316,374 | ) | $ | (2,287,142 | ) | ||||||||
|
|
|
|
|
|
|
|
57
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
For the Six Months Ended April 30, 2022 | For the Year Ended October 31, 2021 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Class R: |
| |||||||||||||||
Sold | — | $ | — | — | $ | — | ||||||||||
Issued as reinvestment of dividends and | 136 | 1,614 | 320 | 3,654 | ||||||||||||
Redeemed | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 136 | $ | 1,614 | 320 | $ | 3,654 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class Z: |
| |||||||||||||||
Sold | — | $ | — | 67,859 | $ | 711,381 | ||||||||||
Issued as reinvestment | 137 | 1,632 | 307 | 3,523 | ||||||||||||
Redeemed | (847 | ) | (10,138 | ) | (62,477 | ) | (665,487 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (710 | ) | $ | (8,506 | ) | 5,689 | $ | 49,417 | ||||||||
|
|
|
|
|
|
|
|
Note 7. Other Risks
Common Stock Risk: While common stocks have historically generated higher average returns than fixed-income securities over the long-term, common stocks have also experienced significantly more volatility in those returns, although under certain market conditions, fixed-income investments may have comparable or greater price volatility. The value of common stocks and other equity securities will fluctuate in response to developments concerning the company, political and regulatory circumstances, the stock market, and the economy. In the short term, stock prices can fluctuate dramatically in response to these developments. Different parts of the market and different types of equity securities can react differently to these developments. For example, stocks of large companies can react differently than stocks of smaller companies, and value stocks (stocks of companies that are undervalued by various measures and have potential for long-term capital appreciation), can react differently from growth stocks (stocks of companies with attractive cash flow returns on invested capital and earnings that are expected to grow). These developments can affect a single company, all companies within the same industry, economic sector or geographic region, or the stock market as a whole.
Preferred Securities Risk: Preferred securities are subject to credit risk, which is the risk that a security will decline in price, or the issuer of the security will fail to make dividend, interest or principal payments when due, because the issuer experiences a decline in its financial status. Preferred securities are also subject to interest rate risk and may decline in value because of changes in market interest rates. The Fund may be subject to a greater risk of rising interest rates than would normally be
58
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
the case in an environment of low interest rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives. In addition, an issuer may be permitted to defer or omit distributions. Preferred securities are also generally subordinated to bonds and other debt instruments in a company’s capital structure. During periods of declining interest rates, an issuer may be able to exercise an option to redeem (call) its issue at par earlier than scheduled, and the Fund may be forced to reinvest in lower yielding securities. Certain preferred securities may be substantially less liquid than many other securities, such as common stocks. Generally, preferred security holders have no voting rights with respect to the issuing company unless certain events occur. Certain preferred securities may give the issuers special redemption rights allowing the securities to be redeemed prior to a specified date if certain events occur, such as changes to tax or securities laws.
Contingent Capital Securities Risk: 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. Finally, CoCo issuers can, at their discretion, suspend dividend distributions on their CoCo securities and are more likely to do so in response to negative economic conditions and/or government regulation. Omitted distributions are typically non-cumulative and will not be paid on a future date. Any omitted distribution may negatively impact the returns or distribution rate of the Fund.
Below-Investment-Grade Securities Risk: Below investment grade securities generally involve greater volatility of price and risk of loss of income and principal, and may be more susceptible to real or perceived adverse economic and competitive industry conditions than higher grade securities. Such securities may face major ongoing uncertainties or exposure to adverse business, financial or economic conditions which could lead to inadequate capacity to meet timely interest and principal payments. It is reasonable to expect that any adverse economic condition could disrupt the market for below investment grade securities, have an adverse impact on the value of those securities and adversely affect the ability of the issuers of those securities to repay principal and interest on those securities.
Liquidity Risk: Liquidity risk is the risk that particular investments of the Fund may become difficult to sell or purchase. The market for certain investments may become less liquid or illiquid due to adverse changes in the conditions of a particular issuer or due to adverse market or economic conditions. In addition, dealer inventories of certain securities, which provide an indication of the ability of dealers to engage in “market making,” are at, or near, historic lows in relation to market size, which has the potential to increase price volatility in the fixed income markets in which the Fund invests. Federal banking regulations may also cause certain dealers to reduce their inventories of certain securities, which may further decrease the Fund’s ability to buy or sell such securities. As a result of this decreased liquidity, the Fund may have to accept a lower price to sell a security, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative effect on performance.
59
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
Further, transactions in less liquid or illiquid securities may entail transaction costs that are higher than those for transactions in liquid securities.
Liquidity risk also includes the risk that market conditions or large shareholder redemptions may impact the ability of the Fund to meet redemption requests within required time periods. In order to meet such redemption requests, the fund may be forced to sell securities at inopportune times or prices.
Foreign (Non-U.S.) and Emerging Market Securities Risk: The Fund directly purchases securities of foreign issuers. Risks of investing in foreign securities, which can be expected to be greater for investments in emerging markets, include currency risks, future political and economic developments and possible imposition of foreign withholding taxes on income or proceeds payable on the securities. In addition, there may be less publicly available information about a foreign issuer than about a domestic issuer, and foreign issuers may not be subject to the same accounting, auditing and financial recordkeeping standards and requirements as domestic issuers. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers.
Foreign Currency Risk: Although the Fund will report its NAV and pay dividends in U.S. dollars, foreign securities often are purchased with and make any dividend and interest payments in foreign currencies.
Therefore, the Fund’s investments in foreign securities will be subject to foreign currency risk, which means that the Fund’s NAV could decline solely as a result of changes in the exchange rates between foreign currencies and the U.S. dollar. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal, dividends and interest to investors located outside the country, due to blockage of foreign currency exchanges or otherwise.
Derivatives and Hedging Transactions Risk: The Fund’s use of derivatives, including for the purpose of hedging interest rate or foreign currency risks, presents risks different from, and possibly greater than, the risks associated with investing directly in traditional securities. Among the risks presented are counterparty risk, financial leverage risk, liquidity risk, OTC trading risk and tracking risk. The use of derivatives can lead to losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivatives.
REIT Risk: In addition to the risks of securities linked to the real estate industry, REITs are subject to certain other risks related to their structure and focus. REITs are dependent upon management skills and generally may not be diversified. REITs are also subject to heavy cash flow dependency, defaults by borrowers and self-liquidation. In addition, REITs could possibly fail to (i) qualify for pass-through of income under applicable tax law, or (ii) maintain their exemptions from registration under the 1940 Act. The above factors may also adversely affect a borrower’s or a lessee’s ability to meet its obligations to the REIT. In the event of a default by a borrower or lessee, the REIT may experience delays in enforcing its rights as a mortgagee or lessor and may incur substantial costs associated with protecting its investments.
Real Estate Market Risk: Since the Fund invests in companies engaged in the real estate industry, an investment in the Fund may be linked to the performance of the real estate markets. Risks of investing in real estate securities include falling property values due to increasing vacancies, declining
60
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
rents resulting from economic, legal, tax, political or technological developments, lack of liquidity, limited diversification, and sensitivity to certain economic factors such as interest-rate changes and market recessions. Real estate company prices also may drop because of the failure of borrowers to pay their loans and poor management, and residential developers, in particular, could be negatively impacted by falling home prices, slower mortgage origination and rising construction costs. The risks of investing in REITs are similar to those associated with direct investments in real estate securities.
Small- and Medium-Sized Companies Risk: Real estate companies in the industry tend to be small- to medium-sized companies in relation to the equity markets as a whole. There may be less trading in a smaller company’s stock, which means that buy and sell transactions in that stock could have a larger impact on the stock’s price than is the case with larger company stocks. Smaller companies also may have fewer lines of business so that changes in any one line of business may have a greater impact on a smaller company’s stock price than is the case for a larger company. Further, smaller company stocks may perform differently in different cycles than larger company stocks. Accordingly, real estate company shares can, and at times will, perform differently than large company stocks.
MLP Investment Risk: An investment in MLPs involves risks that differ from a similar investment in equity securities, such as common stock, of a corporation. Holders of equity securities issued by MLPs have the rights typically afforded to limited partners in a limited partnership. As compared to common shareholders of a corporation, holders of such equity securities have more limited control and limited rights to vote on matters affecting the partnership. MLPs may have additional expenses, as some MLPs pay incentive distribution fees to their general partners. Additionally, conflicts of interest may exist among common unit holders, subordinated unit holders and the general partner or managing member of an MLP; for example, a conflict may arise as a result of incentive distribution payments.
MLPs may have comparatively smaller capitalizations relative to issuers whose securities are included in major benchmark indexes which presents unique investment risks. MLPs and other small capitalization companies often have limited product lines, markets, distribution channels or financial resources, and the management of such companies may be dependent upon one or a few key people. The market movements of equity securities issued by MLPs and other small capitalization companies may be more abrupt or erratic than the market movements of equity securities of larger, more established companies or the stock market in general. MLPs and other smaller capitalization companies have sometimes gone through extended periods when they did not perform as well as larger companies. In addition, equity securities of smaller capitalization companies generally are less liquid than those of larger companies. This means that the Fund could have greater difficulty selling such securities at the time and price that the Fund would like.
MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment. The value of MLPs depends largely on the MLPs being treated as partnerships for U.S. federal income tax purposes. If MLPs were subject to U.S. federal income taxation as a corporation, the MLPs would be required to pay U.S. federal income tax on their taxable income which would have the effect of reducing the amount of cash available for distribution to the MLP unitholders. This would also cause any such distributions received by the Fund to be taxed as dividend income to
61
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
the extent of the MLP’s current or accumulated earnings and profits. As a result, after-tax returns could be reduced, which could cause a decline in the value of MLPs.
Energy Sector Risk: The Fund is subject to more risks related to the energy sector than if the Fund were more broadly diversified over numerous sectors of the economy. A downturn in the energy sector of the economy could have a larger impact on the Fund than on an investment company that does not concentrate in the sector. In addition, there are several specific risks associated with investments in the energy sector, including the following: Commodity Price Risk, Depletion Risk, Supply and Demand Risk, Regulatory Risk, Acquisition Risk, Weather Risks, Exploration Risk, Catastrophic Event Risk, Interest Rate Transaction Risk, Affiliated Party Risk and Limited Partner Risk and Risks of Subordinated MLP Units. MLPs which invest in the energy industry may be highly volatile due to significant fluctuation in the prices of energy commodities as well as political and regulatory developments.
Interest Rate Risk to MLPs and Related Companies: Rising interest rates could increase the cost of capital thereby increasing operating costs and reducing the ability of MLPs and other entities operating in the energy sector to carry out acquisitions or expansions in a cost-effective manner. As a result, rising interest rates could negatively affect the financial performance of MLPs and other entities operating in the energy sector. Rising interest rates may also impact the price of the securities of MLPs and other entities operating in the energy sector as the yields on alternative investments increase. These risks may be greater in the current market environment because certain interest rates are at historically low levels.
Infrastructure Companies Risk: Securities and instruments of infrastructure companies are more susceptible to adverse economic or regulatory occurrences affecting their industries. Infrastructure companies may be subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction and improvement programs, high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors. Infrastructure companies may also be affected by or subject to high interest costs in connection with capital construction and improvement programs; difficulty in raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets; inexperience with and potential losses resulting from a developing deregulatory environment; costs associated with compliance with and changes in environmental and other regulations; regulation by various government authorities; government regulation of rates charged to customers; service interruption due to environmental, operational or other mishaps; the imposition of special tariffs and changes in tax laws, regulatory policies and accounting standards; technological innovations that may render existing plants, equipment or products obsolete; and general changes in market sentiment towards infrastructure and utilities assets.
Natural Resources Risk: The Fund’s investments in securities of natural resource companies involve risks. The market value of securities of natural resource companies may be affected by numerous factors, including events occurring in nature, inflationary pressures and international politics. Because the Fund invests significantly in natural resource companies, there is the risk that the Fund will perform poorly during a downturn in the natural resource sector. For example, events occurring in nature (such as earthquakes or fires in prime natural resource areas) and political events (such as
62
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
coups, military confrontations or acts of terrorism) can affect the overall supply of a natural resource and the value of companies involved in such natural resource. Political risks and the other risks to which foreign securities are subject may also affect domestic natural resource companies if they have significant operations or investments in foreign countries. Rising interest rates and general economic conditions may also affect the demand for natural resources.
Renewable Companies Risk: Renewable companies may be subject to a variety of factors that may adversely affect their business or operations, including costs and losses associated with environmental and other regulations and enforcement policies or changes thereto, obsolescence of its existing offerings, the effects of economic slowdown, short production cycles, increased competition from other providers of services, the effects of energy conservation policies and other factors.
Because many renewable companies may be concentrated in a particular industry or industry sector (for example, the energy sector), they are subject to risks associated with such industry or sector. Renewable energy companies may be more volatile than companies operating in more established industries. Renewable energy companies and other companies operating in the renewable energy group of industries are subject to specific risks, including, among others: fluctuations in commodity prices and/or interest rates; the success of research or exploration projects, changes in governmental or environmental regulation; reduced availability of renewable energy sources or other commodities for transporting, processing, storing or delivering resources; slowdowns in new construction; seasonal weather conditions, extreme weather or other natural disasters; and threats of attack by terrorists on certain clean energy assets. Additionally, the industry also can be significantly affected by the supply of and demand for specific products or services, including the supply of and demand and price of traditional energy sources (e.g., oil and gas).
Digital Infrastructure Companies Risk: Digital Infrastructure Companies are affected by supply and demand factors, such as changes in demand for communications infrastructure, consolidation of tower sites, and new technologies. Digital Infrastructure Companies are particularly affected by changes in demand for wireless infrastructure and wireless connectivity. Such demand is affected by numerous factors including, but not limited to, consumer demand for wireless connectivity; availability or capacity of wireless infrastructure or associated land interests; location of wireless infrastructure; financial condition of customers; increased use of network sharing, roaming, joint development, or resale agreements by customers; mergers or consolidations by and among customers; governmental regulations, including local or state restrictions on the proliferation of wireless infrastructure; and technological changes, including obsolescence of its offerings or decommissioning of certain existing wireless networks. Digital Infrastructure Companies are subject to risks relating to disruption of service caused by, among others, hardware, software or internal system failures or malfunctions, security breaches, interruptions or delays in service by third-parties on which they rely, natural disasters, supplier outages, or power surges. Such disruptions can lead to significant downtime, data loss, reputational harm and associated expenses and losses from which such company may not be able to recover. Digital Infrastructure Companies may be subject to other risks including, but not limited to, water supply and climate risk and data security risk. The digital infrastructure industry is rapidly growing, highly competitive and requires Digital Infrastructure Companies to invest significant amounts of research, software and product development. Such investments may not generate returns and may
63
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
cause such company to incur significant losses. Companies may experience significant fluctuations in operating results and growth rates, which could result in significant gains and losses for such company and its securities to which the Fund has exposure. In addition, the impact of existing or future rules, regulations, taxes, and governmental or political actions relating to the collecting, moving, storing or processing of personal or sensitive data or payments has the potential to be financially impactful, and, to the extent that a Digital Infrastructure Company to which the Fund has exposure, becomes more extensively regulated there could be negative impacts to such company and the Fund. Banking regulation, consumer protection laws, anti-money laundering and/or other changes in regulation may negatively affect certain Digital Infrastructure Companies.
Geopolitical Risk: Occurrence of global events similar to those in recent years, such as war (including Russia’s military invasion of Ukraine), terrorist attacks, natural or environmental disasters, country instability, infectious disease epidemics, such as that caused by the COVID-19 virus, market instability, debt crises and downgrades, embargoes, tariffs, sanctions and other trade barriers and other governmental trade or market control programs, the potential exit of a country from its respective union and related geopolitical events, may result in market volatility and may have long-lasting impacts on both the U.S. and global financial markets. Events occurring in one region of the world may negatively impact industries and regions that are not otherwise directly impacted by the events. Additionally, those events, as well as other changes in foreign and domestic political and economic conditions, could adversely affect individual issuers or related groups of issuers, securities markets, interest rates, secondary trading, credit ratings, inflation, investor sentiment and other factors affecting the value of the Fund’s investments.
The outbreak of COVID-19 and efforts to contain its spread have resulted in, among other things, extreme volatility in the financial markets and severe losses, reduced liquidity of many instruments, significant travel restrictions, significant disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, service and event cancellations, reductions and other changes, strained healthcare systems, as well as general concern and uncertainty. The impact of the COVID-19 outbreak has negatively affected the global economy, the economies of individual countries, and the financial performance of individual issuers, sectors, industries, asset classes, and markets in significant and unforeseen ways. Pandemics may also exacerbate other pre-existing political, social, economic, market and financial risks. The effects of the outbreak in developing or emerging market countries may be greater due to generally less established health care systems and supply chains. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty. The foregoing could impair the Fund’s ability to maintain operational standards (such as with respect to satisfying redemption requests), disrupt the operations of the Fund’s service providers, adversely affect the value and liquidity of the Fund’s investments, and negatively impact the Fund’s performance and your investment in the Fund.
On January 31, 2020, the United Kingdom (UK) withdrew from the European Union (EU) (referred to as Brexit), commencing a transition period that ended on December 31, 2020. The EU-UK Trade and Cooperation Agreement, a bilateral trade and cooperation deal governing the future relationship
64
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
between the UK and the EU (TCA), provisionally went into effect on January 1, 2021, and entered into force officially on May 1, 2021. Notwithstanding the TCA, following the transition period, there is likely to be considerable uncertainty as to the UK’s post-transition framework, including how the financial markets will react. As this process unfolds, markets may be further disrupted. Given the size and importance of the UK’s economy, uncertainty about its legal, political and economic relationship with the remaining member states of the EU may continue to be a source of instability.
On February 24, 2022, Russia launched a large-scale invasion of Ukraine significantly amplifying already existing geopolitical tensions. The United States and many other countries have instituted various economic sanctions against Russian individuals and entities. The extent and duration of the military action, sanctions imposed and other punitive actions taken and resulting future market disruptions in Europe and globally cannot be easily predicted, but could be significant and have a severe adverse effect on the global economy, securities markets and commodities markets globally. To the extent the Fund has exposure to the energy sector, the Fund may be especially susceptible to these risks. These disruptions may also make it difficult to value the Fund’s portfolio investments and cause certain of the Fund’s investments to become illiquid. The strengthening or weakening of the U.S. dollar relative to other currencies may, among other things, adversely affect the Fund’s investments denominated in non-U.S. dollar currencies. It is difficult to predict when similar events affecting the U.S. or global financial markets may occur, the effects that such events may have, and the duration of those effects.
Regulatory Risk: The U.S. government has proposed and adopted multiple regulations that could have a long-lasting impact on the Fund and on the mutual fund industry in general. The U.S. Securities and Exchange Commission’s (SEC) final rules, related requirements and amendments to modernize reporting and disclosure, along with other potential upcoming regulations, could, among other things, restrict the Fund’s ability to engage in transactions, impact flows into the Fund and/or increase overall expenses of the Fund. In addition to recently adopted Rule 18f-4, which will govern the way derivatives are used by registered investment companies, the SEC, Congress, various exchanges and regulatory and self-regulatory authorities, both domestic and foreign, have undertaken reviews of the use of derivatives by registered investment companies, which could affect the nature and extent of instruments used by the Fund. While the full extent of all of these regulations is still unclear, these regulations and actions may adversely affect both the Fund and the instruments in which the Fund invests and its ability to execute its investment strategy. Similarly, regulatory developments in other countries may have an unpredictable and adverse impact on the Fund.
LIBOR Risk: Many financial instruments are tied to the London Interbank Offered Rate, or “LIBOR,” to determine payment obligations, financing terms, hedging strategies, or investment value. LIBOR is the offered rate for short-term Eurodollar deposits between major international banks. The Head of the UK Financial Conduct Authority the (FCA) and LIBOR’s administrator, ICE Benchmark Administration (IBA) ceased publication of most LIBOR settings at the end of 2021 and the IBA is expected to cease publication of a majority of U.S. dollar LIBOR settings after June 30, 2023. In addition, global regulators have announced that, with limited exceptions, no new LIBOR-based contracts should be entered into after 2021. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies (e.g., the Secured Overnight Financing Rate for U.S. dollar LIBOR and the Sterling Overnight Interbank Average Rate for GBP LIBOR). Other countries are introducing their
65
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
own local-currency-denominated alternative reference rates for short-term lending and global consensus on alternative rates is lacking.
There remains uncertainty and risk regarding the willingness and ability of issuers and lenders to include enhanced provisions in new and existing contracts or instruments, the suitability of the proposed replacement rates, and the process for amending existing contracts and instruments remains unclear. As such, the transition away from LIBOR may lead to increased volatility and illiquidity in markets that are tied to LIBOR, reduced values of, inaccurate valuations of, and miscalculations of payment amounts for LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and reduced effectiveness of hedging strategies, adversely affecting the Fund’s performance or NAV. In addition, any alternative reference rate may be an ineffective substitute resulting in prolonged adverse market conditions for the Fund. Since the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the cessation of LIBOR publications.
Large Shareholder Risk: The Fund may have one or more large shareholders or a group of shareholders investing in Fund shares indirectly through an account, platform or program sponsored by a financial institution. Investment and asset allocation decisions by such financial institutions regarding the account, platform or program through which multiple shareholders invest may result in subscription and redemption decisions that have a significant impact on the assets, expenses and trading activities of the Fund. Such a decision may cause the Fund to sell assets (or invest cash) at disadvantageous times or prices, increase or accelerate taxable gains or transaction costs and may negatively affect the Fund’s NAV, performance, or ability to satisfy redemptions in a timely manner.
This is not a complete list of the risks of investing in the Fund. For additional information concerning the risks of investing in the Fund, please consult the Fund’s prospectus.
Note 8. Other
In the normal course of business, the Fund enters into contracts that provide general indemnifications. The Fund’s maximum exposure under these arrangements is dependent on claims that may be made against the Fund in the future and, therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote.
Note 9. New Accounting Pronouncement
In January 2021, the Financial Accounting Standards Board issued Accounting Standards Update No. 2021-01 (ASU 2021-01), “Reference Rate Reform (Topic 848)”. ASU 2021-01 is an update of ASU 2020-04, which is in response to concerns about structural risks of interbank offered rates, and particularly the risk of cessation of LIBOR, regulators have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference
66
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
rate expected to be discontinued because of reference rate reform. The ASU 2021-01 update clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in this update are effective immediately through December 31, 2022, for all entities. Management does not expect any impact to the Fund’s net assets or results of operations.
Note 10. Subsequent Events
Management has evaluated events and transactions occurring after April 30, 2022 through the date that the financial statements were issued, and has determined that no additional disclosure in the financial statements is required.
67
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
OTHER INFORMATION
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 800-330-7348, (ii) on our website at cohenandsteers.com or (iii) on the SEC’s website at http://www.sec.gov. In addition, the Fund’s proxy voting record for the most recent 12-month period ended June 30 is available by August 31 of each year (i) without charge, upon request, by calling 800-330-7348 or (ii) on the SEC’s website at http://www.sec.gov.
Disclosures of the Fund’s complete holdings are required to be made monthly on Form N-PORT, with every third month made available to the public by the SEC 60 days after the end of the Fund’s fiscal quarter. The Fund’s Form N-PORT is available (i) without charge, upon request, by calling 800-330-7348 or (ii) on the SEC’s website at http://www.sec.gov.
Please note that distributions paid by the Fund to shareholders are subject to recharacterization for tax purpose and are taxable up to the amount of the Fund’s investment company taxable income and net realized gains. Distributions in excess of the Fund’s investment company taxable income and net realized gains are a return of capital distributed from the Fund’s assets. To the extent this occurs, the Fund’s shareholders of record will be notified of the estimated amount of capital returned to shareholders for each such distribution and this information will also be available at cohenandsteers.com. The final tax treatment of all distribution is reported to shareholders on their 1099-DIV forms, which are mailed after the close of each calendar year. Distributions of capital decrease the Fund’s total assets and, therefore, could have the effect of increasing the Fund’s expense ratio. In addition, in order to make these distributions, the Fund may have to sell portfolio securities at a less than opportune time.
Addition to Portfolio Management Team
Effective April 29, 2022, Mr. Jeffrey Palma was added as portfolio manager of the Fund. Mr. Palma joined the investment advisor in 2021 and currently serves as Senior Vice President of the investment advisor.
Changes to the Board of Directors and Officers
On March 8, 2021, the Board of Directors voted to set the number of directors on the Fund’s Board of Directors to ten. In addition, the Board of Directors elected Ms. Ramona Rogers-Windsor as a Director of the Fund.
Effective December 7, 2021, Director and Chairman Robert H. Steers resigned from the Fund’s Board of Directors. The Board of Directors has appointed Director Joseph M. Harvey to succeed Mr. Steers as Chairman. In addition, effective March 1, 2022, Mr. Harvey, Cohen & Steers, Inc.’s (CNS) current President and a member of CNS’ board of directors succeeded Mr. Steers as Chief Executive Officer of CNS and Cohen & Steers Capital Management, Inc., the Fund’s investment advisor (the investment advisor). At that time, Mr. Steers assumed the role of Executive Chairman of CNS and continues on as a member of CNS’ board of directors.
68
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
On December 7, 2021, the Board of Directors elected Adam M. Derechin, President and Chief Executive Officer of the Fund, as a Director of the Fund. Concurrent with his election, Mr. Derechin resigned as President and Chief Executive Officer of the Fund. Mr. Derechin currently serves as the Chief Operating Officer of CNS and the investment advisor since 2004 and 2003, respectively. Effective December 7, 2021, James Giallanza, previously Chief Financial Officer of the Fund, succeeded Mr. Derechin as President and Chief Executive Officer of the Fund and Albert Laskaj, Treasurer of the Fund, succeeded Mr. Giallanza as Chief Financial Officer of the Fund.
In addition, also on December 7, 2021, the Board of Directors voted to set the number of directors on the Fund’s Board of Directors to nine, effective January 1, 2022. Director C. Edward Ward, Jr.retired from the Board of Directors on December 31, 2021 pursuant to the Fund’s mandatory retirement policy.
69
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
Cohen & Steers Privacy Policy
Facts | What Does Cohen & Steers Do With Your Personal Information? | |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. | |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
• Social Security number and account balances
• Transaction history and account transactions
• Purchase history and wire transfer instructions | |
How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Cohen & Steers chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does Cohen & Steers share? | Can you limit this sharing? | ||
For our everyday business purposes— such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or reports to credit bureaus | Yes | No | ||
For our marketing purposes— to offer our products and services to you | Yes | No | ||
For joint marketing with other financial companies— | No | We don’t share | ||
For our affiliates’ everyday business purposes— information about your transactions and experiences | No | We don’t share | ||
For our affiliates’ everyday business purposes— information about your creditworthiness | No | We don’t share | ||
For our affiliates to market to you— | No | We don’t share | ||
For non-affiliates to market to you— | No | We don’t share | ||
Questions? Call 800.330.7348 |
70
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
Cohen & Steers Privacy Policy—(Continued)
Who we are | ||
Who is providing this notice? | Cohen & Steers Capital Management, Inc., Cohen & Steers Asia Limited, Cohen & Steers Japan Limited, Cohen & Steers UK Limited, Cohen & Steers Ireland Limited, Cohen & Steers Securities, LLC, Cohen & Steers Private Funds and Cohen & Steers Open and Closed-End Funds (collectively, Cohen & Steers). | |
What we do | ||
How does Cohen & Steers protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We restrict access to your information to those employees who need it to perform their jobs, and also require companies that provide services on our behalf to protect your information. | |
How does Cohen & Steers collect my personal information? | We collect your personal information, for example, when you:
• Open an account or buy securities from us
• Provide account information or give us your contact information
• Make deposits or withdrawals from your account
We also collect your personal information from other companies. | |
Why can’t I limit all sharing? | Federal law gives you the right to limit only:
• sharing for affiliates’ everyday business purposes—information about your creditworthiness
• affiliates from using your information to market to you
• sharing for non-affiliates to market to you
State law and individual companies may give you additional rights to limit sharing. | |
Definitions | ||
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.
• Cohen & Steers does not share with affiliates. | |
Non-affiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
• Cohen & Steers does not share with non-affiliates. | |
Joint marketing | A formal agreement between non-affiliated financial companies that together market financial products or services to you.
• Cohen & Steers does not jointly market. |
71
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
Cohen & Steers Open-End Mutual Funds
COHEN & STEERS REALTY SHARES
• | Designed for investors seeking total return, investing primarily in U.S. real estate securities |
• | Symbols: CSJAX, CSJCX, CSJIX, CSRSX, CSJRX, CSJZX |
COHEN & STEERS REAL ESTATE SECURITIES FUND
• | Designed for investors seeking total return, investing primarily in U.S. real estate securities |
• | Symbols: CSEIX, CSCIX, CREFX, CSDIX, CIRRX, CSZIX |
COHEN & STEERS INSTITUTIONAL REALTY SHARES
• | Designed for institutional investors seeking total return, investing primarily in U.S. real estate securities |
• | Symbol: CSRIX |
COHEN & STEERS GLOBAL REALTY SHARES
• | Designed for investors seeking total return, investing primarily in global real estate equity securities |
• | Symbols: CSFAX, CSFCX, CSSPX, GRSRX, CSFZX |
COHEN & STEERS INTERNATIONAL REALTY FUND
• | Designed for investors seeking total return, investing primarily in international (non-U.S.) real estate securities |
• | Symbols: IRFAX, IRFCX, IRFIX, IRFRX, IRFZX |
COHEN & STEERS REAL ASSETS FUND
• | Designed for investors seeking total return and the maximization of real returns during inflationary environments by investing primarily in real assets |
• | Symbols: RAPAX, RAPCX, RAPIX, RAPRX, RAPZX |
COHEN & STEERS PREFERRED SECURITIES
AND INCOME FUND
• | Designed for investors seeking total return (high current income and capital appreciation), investing primarily in preferred and debt securities issued by U.S. and non-U.S. companies |
• | Symbols: CPXAX, CPXCX, CPXFX, CPXIX, CPRRX, CPXZX |
COHEN & STEERS LOW DURATION PREFERRED
AND INCOME FUND
• | Designed for investors seeking high current income and capital preservation by investing in low-duration preferred and other income securities issued by U.S. and non-U.S. companies |
• | Symbols: LPXAX, LPXCX, LPXFX, LPXIX, LPXRX, LPXZX |
COHEN & STEERS MLP & ENERGY OPPORTUNITY FUND
• | Designed for investors seeking total return, investing primarily in midstream energy master limited partnership (MLP) units and related stocks |
• | Symbols: MLOAX, MLOCX, MLOIX, MLORX, MLOZX |
COHEN & STEERS GLOBAL INFRASTRUCTURE FUND
• | Designed for investors seeking total return, investing primarily in global infrastructure securities |
• | Symbols: CSUAX, CSUCX, CSUIX, CSURX, CSUZX |
COHEN & STEERS ALTERNATIVE INCOME FUND
• | Designed for investors seeking high current income and capital appreciation, investing in equity, preferred and debt securities, focused on real assets and alternative income strategies |
• | Symbols: DVFAX, DVFCX, DVFIX, DVFRX, DVFZX |
Distributed by Cohen & Steers Securities, LLC.
Please consider the investment objectives, risks, charges and expenses of any Cohen & Steers U.S. registered open-end fund carefully before investing. A summary prospectus and prospectus containing this and other information can be obtained by calling 800-330-7348 or by visiting cohenandsteers.com. Please read the summary prospectus and prospectus carefully before investing.
72
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
OFFICERS AND DIRECTORS
Joseph M. Harvey
Director, Chairman and Vice President
Adam M. Derechin
Director
Michael G. Clark
Director
George Grossman
Director
Dean A. Junkans
Director
Gerald J. Maginnis
Director
Jane F. Magpiong
Director
Daphne L. Richards
Director
Ramona Rogers-Windsor
Director
James Giallanza
President and Chief Executive Officer
Albert Laskaj
Treasurer and Chief Financial Officer
Dana A. DeVivo
Secretary and Chief Legal Officer
Stephen Murphy
Chief Compliance Officer
and Vice President
Jon Cheigh
Vice President
Vincent L. Childers
Vice President
KEY INFORMATION
Investment Advisor and Administrator
Cohen & Steers Capital Management, Inc.
280 Park Avenue
New York, NY 10017
(212) 832-3232
Co-administrator and Custodian
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
Transfer Agent
DST Asset Manager Solutions, Inc.
P.O. Box 219953
Kansas City, MO 64121-9953
(800) 437-9912
Legal Counsel
Ropes & Gray LLP
1211 Avenue of the Americas
New York, NY 10036
Distributor
Cohen & Steers Securities, LLC
280 Park Avenue
New York, NY 10017
NASDAQ Symbol: | Class A—DVFAX | |
Class C—DVFCX | ||
Class F—DVVFX* | ||
Class I—DVFIX | ||
Class R—DVFRX | ||
Class Z—DVFZX |
website: cohenandsteers.com
This report is authorized for delivery only to shareholders of Cohen & Steers Alternative Income Fund, Inc. unless accompanied or preceded by the delivery of a currently effective prospectus setting forth details of the Fund. Performance data quoted represent past performance. Past performance is no guarantee of future results and your investment may be worth more or less at the time you sell your shares.
* | Class F shares are currently not available for purchase. |
73
eDelivery AVAILABLE
Stop traditional mail delivery;
receive your shareholder reports
and prospectus online.
Sign up at cohenandsteers.com
Cohen & Steers
Alternative
Income Fund
Semiannual Report April 30, 2022
As permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the Fund’s annual and semi-annual shareholder reports are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are made available on the Fund’s website at www.cohenandsteers.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a Fund electronically anytime by contacting your financial intermediary or, if you are a direct investor, by signing up at www.cohenandsteers.com.
You may elect to receive all future reports in paper, free of charge, at any time. If you invest through a financial intermediary, you can contact your financial intermediary or, if you are a direct investor, you can call (800) 330-7348 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all Funds held in your account if you invest through your financial intermediary or all Funds held within the fund complex if you invest directly with the Fund.
DVFAXSAR
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Included in Item 1 above.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
None.
Item 11. Controls and Procedures.
(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(b) There were no changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) Not applicable.
(a)(3) Not applicable.
(a)(4) Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
COHEN & STEERS ALTERNATIVE INCOME FUND, INC.
By: | /s/ James Giallanza | |||
Name: James Giallanza Title: Principal Executive Officer (President and Chief Executive Officer) | ||||
Date: July 6, 2022 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ James Giallanza | |||
Name: James Giallanza Title: Principal Executive Officer (President and Chief Executive Officer) | ||||
By: | /s/ Albert Laskaj | |||
Name: Albert Laskaj Title: Principal Financial Officer (Treasurer and Chief Financial Officer) | ||||
Date: July 6, 2022 |