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 | 811-22392 | |||||||
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Cohen & Steers Preferred Securities and Income Fund, Inc. | ||||||||
(Exact name of registrant as specified in charter) | ||||||||
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280 Park Avenue, New York, NY |
| 10017 | ||||||
(Address of principal executive offices) |
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Tina M. Payne Cohen & Steers Capital Management, Inc. 280 Park Avenue New York, New York 10017 | ||||||||
(Name and address of agent for service) | ||||||||
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Registrant’s telephone number, including area code: | (212) 832-3232 |
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Date of fiscal year end: | December 31 |
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Date of reporting period: | June 30, 2015 |
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Item 1. Reports to Stockholders.
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
To Our Shareholders:
We would like to share with you our report for the six months ended June 30, 2015. The net asset values (NAV) per share at that date were $13.53, $13.47, $13.56, $13.56 and $13.55 for Class A, Class C, Class I, Class R and Class Z shares, respectively.
The total returns, including income and change in NAV, for the Fund and its comparative benchmarks were:
Six Months Ended June 30, 2015 | |||||||
Cohen & Steers Preferred Securities and Income Fund—Class A | 2.56 | % | |||||
Cohen & Steers Preferred Securities and Income Fund—Class C | 2.29 | % | |||||
Cohen & Steers Preferred Securities and Income Fund—Class I | 2.80 | % | |||||
Cohen & Steers Preferred Securities and Income Fund—Class R | 2.56 | % | |||||
Cohen & Steers Preferred Securities and Income Fund—Class Z | 2.73 | % | |||||
BofA Merrill Lynch Fixed-Rate Preferred Securities Indexa | 2.21 | % | |||||
Blended Benchmark—50% BofA Merrill Lynch U.S. Capital Securities Index/50% BofA Merrill Lynch Fixed-Rate Preferred Securities Indexa | 2.08 | % | |||||
S&P 500 Indexa | 1.23 | % |
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 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 3.75% initial sales charge on Class A shares and 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.
a The BofA Merrill Lynch Fixed-Rate Preferred Securities Index tracks the performance of fixed-rate U.S. dollar-denominated preferred securities issued in the U.S. domestic market. The BofA Merrill Lynch U.S. Capital Securities Index is a subset of the BofA Merrill Lynch U.S. Corporate Index including all fixed-to-floating rate, perpetual callable and capital securities. 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. Benchmark returns are shown for comparative purposes only and may not be representative of the Fund's portfolio. The Fund's benchmarks do not include below-investment grade securities.
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COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
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.
Market Review
Preferred securities had positive total returns in the first six months of 2015, despite a general rise in bond yields over the period that hindered Treasury securities and investment-grade debt. Nearly all fixed income classes performed well in the first half of the period, with gains spurred in part by quantitative easing by the European Central Bank, which sent regional yields to record lows and influenced yields globally, including in the U.S. In the latter half of the period yields in the U.S. and Europe headed back up, amid signs of improving economic conditions. A somewhat better economic outlook following a slower first quarter in the U.S. also increased the possibility of a Federal Reserve interest-rate hike in 2015.
In this environment, longer-dated and high-quality securities struggled, while credit-sensitive securities had generally positive returns. Nevertheless, within preferreds, securities in the exchange-traded market somewhat outperformed preferreds traded over the counter (OTC), despite the average shorter duration of OTC preferreds. This partly reflected tighter supply conditions in the exchange-traded market, with relatively little new issuance in the period as well as some large issuer redemptions.
Preferred securities issued by banks outperformed the wider preferred market. Large U.S. banks reported solid first-quarter earnings, with the best results seen in the past several years, cheering equity and credit investors. In addition to improvements in trading activity, loan growth, and balance sheets, sentiment toward banks was helped by good cost controls and the prospect that loan resets (based on short-term rates) would improve bank net interest margins and overall profitability. Also worth noting is that banks continue to put elevated litigation and penalty expenses behind them.
The performance for the broad banking sector also reflected gains from contingent capital securities (CoCos), which may be classified as debt or preferred securities depending on their place in the capital structure. CoCos have been issued so far primarily by European banks. Demand for the above-average income these securities offer has remained strong, easily absorbing new supply, which itself slowed as the period progressed amid the increased volatility in regional yields.
Preferreds issued by real estate investment trusts (REITs) posted gains for the period. Good and improving real estate fundamentals continued to enhance REITs' financial profiles, while favorable technical factors—low new supply of REIT preferreds combined with steady demand—also supported the group's performance.
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COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
Fund Performance
The Fund had a positive total return for the period and outperformed its benchmark. Security selection in the banking sector was the primary contributor to relative performance, with positive returns from our overweight and out-of-index positions in certain U.S. and European banks, including CoCos. Security selection in the real estate sector also aided performance. Security selection in the telecommunications sector detracted from relative performance, in part due to our out-of-index position in a long-dated issue from Frontier Communications that declined.
Impact of Derivatives on Fund Performance
The Fund used derivatives in the form of forward foreign currency exchange contracts in order to manage currency risk on certain Fund positions denominated in foreign currencies. These contracts did not have a material effect on the Fund's total return during the six-month period ended June 30, 2015.
Investment Outlook
We believe preferreds remain well positioned relative to other credit sectors, offering securities with high income rates and even tax-advantaged dividend income for U.S. buyers. As well, strong and improving credit fundamentals of many issuers, notably banks, provide potential for further narrowing in credit spreads.
We anticipate continued job growth and wage gains are likely to induce the Federal Reserve to increase interest rates late in the year, diminishing its extraordinarily accommodative stance. While yields on longer-maturity Treasuries may rise somewhat as global growth improves, we nonetheless expect yields to be capped by the global environment. We expect only a gradual rise in inflation and a somewhat uneven global economic expansion, with Europe improving but China showing signs of more sluggish growth. In this light, we believe low global yields are likely to continue to exert influence on Treasuries. Absolute yields offered by foreign sovereign bonds remain very low, and many shorter-maturity European sovereigns now offer negative rates of return, making U.S. bond markets attractive to foreign investors.
Over the intermediate term, Treasury yields may see some upward pressure as the U.S. economy accelerates from a lackluster first quarter and labor markets continue to tighten. As these trends unfold, we believe the high income rates offered by preferred securities may help protect investors from a total-return perspective should prices be negatively impacted by higher demanded bond yields. We continue to favor higher-income securities with wide credit spreads and lower-duration fixed-to-float structures with significant amounts of call protection, which have the potential to perform well in most interest-rate environments.
3
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
Sincerely,
ROBERT H. STEERS | JOSEPH M. HARVEY | ||||||||||
Chairman | Portfolio Manager | ||||||||||
WILLIAM F. SCAPELL | ELAINE ZAHARIS-NIKAS | ||||||||||
Portfolio Manager | 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, infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions.
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COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
Performance Review (Unaudited)
Average Annual Total Returns—For Periods Ended June 30, 2015
Class A Shares | Class C Shares | Class I Shares | Class R Shares | Class Z Shares | |||||||||||||||||||
1 Year (with sales charge) | 0.25 | %a | 2.55 | %b | — | — | — | ||||||||||||||||
1 Year (without sales charge) | 4.16 | % | 3.55 | % | 4.55 | % | — | — | |||||||||||||||
5 Years (with sales charge) | 9.77 | %a | 9.90 | % | — | — | — | ||||||||||||||||
5 Years (without sales charge) | 10.61 | % | 9.90 | % | 10.99 | % | — | — | |||||||||||||||
Since Inceptionc (with sales charge) | 8.95 | %a | 9.04 | % | — | — | — | ||||||||||||||||
Since Inceptionc (without sales charge) | 9.76 | % | 9.04 | % | 10.14 | % | 4.26 | % | 4.56 | % |
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 May 1, 2015 prospectus were as follows: Class A—1.19% and 1.15%; Class C—1.84% and 1.80%; Class I—0.94% and 0.80%; Class R—1.34% and 1.30%; and Class Z—0.84% and 0.80%. Effective August 1, 2015 through June 30, 2017, 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 and extraordinary expenses) do not exceed 1.20% for Class A shares, 1.85% for Class C shares, 0.85% for Class I shares, 1.35% for Class R shares and 0.85% for Class Z shares, as disclosed in a prospectus supplement dated July 17, 2015. This contractual agreement can be amended at any time by agreement of the Fund 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 3.75% front-end sales charge.
b Reflects a contingent deferred sales charge of 1.00%.
c Inception date of May 3, 2010 for Class A, C and I shares and October 1, 2014 for Class R and Z shares.
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COHEN & STEERS PREFERRED SECURITIES AND 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 January 1, 2015—June 30, 2015.
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.
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COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
Expense Example (Unaudited)—(Continued)
Beginning Account Value January 1, 2015 | Ending Account Value June 30, 2015 | Expenses Paid During Perioda January 1, 2015– June 30, 2015 | |||||||||||||
Class A | |||||||||||||||
Actual (2.56% return) | $ | 1,000.00 | $ | 1,025.60 | $ | 5.78 | |||||||||
Hypothetical (5% annual return before expenses) | $ | 1,000.00 | $ | 1,019.09 | $ | 5.76 | |||||||||
Class C | |||||||||||||||
Actual (2.29% return) | $ | 1,000.00 | $ | 1,022.90 | $ | 9.03 | |||||||||
Hypothetical (5% annual return before expenses) | $ | 1,000.00 | $ | 1,015.87 | $ | 9.00 | |||||||||
Class I | |||||||||||||||
Actual (2.80% return) | $ | 1,000.00 | $ | 1,028.00 | $ | 4.02 | |||||||||
Hypothetical (5% annual return before expenses) | $ | 1,000.00 | $ | 1,020.83 | $ | 4.01 | |||||||||
Class R | |||||||||||||||
Actual (2.56% return) | $ | 1,000.00 | $ | 1,025.60 | $ | 6.53 | |||||||||
Hypothetical (5% annual return before expenses) | $ | 1,000.00 | $ | 1,018.35 | $ | 6.51 | |||||||||
Class Z | |||||||||||||||
Actual (2.73% return) | $ | 1,000.00 | $ | 1,027.30 | $ | 4.02 | |||||||||
Hypothetical (5% annual return before expenses) | $ | 1,000.00 | $ | 1,020.83 | $ | 4.01 |
a Expenses are equal to the Fund's Class A, Class C, Class I, Class R and Class Z annualized net expense ratios of 1.15%, 1.80%, 0.80%, 1.30% and 0.80%, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
7
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
June 30, 2015
Top Ten Holdingsa
(Unaudited)
Security | Value | % of Net Assets | |||||||||
JPMorgan Chase & Co., 7.90%, Series I | $ | 75,665,550 | 2.0 | ||||||||
Wells Fargo & Co., 7.98%, Series K | 63,304,325 | 1.7 | |||||||||
General Electric Capital Corp., 7.125%, Series A | 62,485,500 | 1.6 | |||||||||
Nationwide Building Society, 10.25%, due 12/6/99 (United Kingdom) | 58,790,179 | 1.5 | |||||||||
Rabobank Nederland, 11.00%, 144A (Netherlands) | 56,320,189 | 1.5 | |||||||||
Liberty Mutual Group, 7.80%, due 3/7/87, 144A | 55,785,187 | 1.5 | |||||||||
Citigroup, 5.875%, Series O | 51,727,847 | 1.4 | |||||||||
Royal Bank of Scotland Group PLC, 7.648% (United Kingdom) | 48,286,250 | 1.3 | |||||||||
MetLife Capital Trust X, 9.25%, due 4/8/68, 144A | 46,581,212 | 1.2 | |||||||||
Enel SpA, 8.75%, due 9/24/73, 144A (Italy) | 46,265,284 | 1.2 |
a Top ten holdings are determined on the basis of the value of individual securities held. The Fund may also hold positions in other types of securities issued by the companies listed above. See the Schedule of Investments for additional details on such other positions.
Sector Breakdown
(Based on Net Assets)
(Unaudited)
8
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
June 30, 2015 (Unaudited)
Number of Shares | Value | ||||||||||||||
PREFERRED SECURITIES—$25 PAR VALUE | 34.5% | ||||||||||||||
BANKS | 9.5% | ||||||||||||||
Astoria Financial Corp., 6.50%, Series C | 161,571 | $ | 4,016,655 | ||||||||||||
Bank of America Corp., 6.625%, Series W | 76,982 | 1,965,350 | |||||||||||||
Bank of America Corp., 6.50%, Series Y | 1,831,883 | 46,218,408 | |||||||||||||
BB&T Corp., 5.625%, Series E | 567,227 | 13,687,187 | |||||||||||||
BB&T Corp., 5.20%, Series G | 308,310 | 7,081,881 | |||||||||||||
Capital One Financial Corp., 6.00%, Series B | 75,078 | 1,850,673 | |||||||||||||
Capital One Financial Corp., 6.70%, Series D | 349,175 | 9,078,550 | |||||||||||||
Citigroup, 6.875%, Series K | 613,736 | 16,362,202 | |||||||||||||
Countrywide Capital IV, 6.75%, due 4/1/33 | 507,052 | 12,858,839 | |||||||||||||
Farm Credit Bank of Texas, 6.75%, 144Aa | 211,700 | 21,957,270 | |||||||||||||
Fifth Third Bancorp, 6.625%, Series I | 719,379 | 20,286,488 | |||||||||||||
First Republic Bank, 6.20%, Series B | 487,068 | 12,405,622 | |||||||||||||
Hancock Holding Co., 5.95%, due 6/15/45 | 368,150 | 8,813,511 | |||||||||||||
JPMorgan Chase & Co., 5.50%, Series O | 168,765 | 3,991,292 | |||||||||||||
JPMorgan Chase & Co., 5.45%, Series P | 509,218 | 12,007,360 | |||||||||||||
JPMorgan Chase & Co., 6.125%, Series Y | 697,800 | 17,382,198 | |||||||||||||
PNC Financial Services Group, 6.125%, Series P | 571,449 | 15,680,561 | |||||||||||||
PrivateBancorp, 7.125%, due 10/30/42 | 433,704 | 11,506,167 | |||||||||||||
Regions Financial Corp., 6.375%, Series B | 1,443,291 | 37,107,012 | |||||||||||||
SunTrust Banks, 5.875%, Series E | 546,234 | 13,295,336 | |||||||||||||
US Bancorp, 6.50%, Series F | 353,188 | 9,966,965 | |||||||||||||
Wells Fargo & Co., 5.20% | 214,140 | 4,968,048 | |||||||||||||
Wells Fargo & Co., 5.85% | 1,400,158 | 35,704,029 | |||||||||||||
Wells Fargo & Co., 6.625% | 186,640 | 5,151,264 | |||||||||||||
Zions Bancorp, 7.90%, Series F | 357,785 | 9,939,267 | |||||||||||||
Zions Bancorp, 6.30%, Series G | 355,092 | 9,271,452 | |||||||||||||
362,553,587 | |||||||||||||||
BANKS—FOREIGN | 2.1% | ||||||||||||||
Barclays Bank PLC, 7.10%, Series III (United Kingdom) | 661,503 | 17,185,848 | |||||||||||||
Barclays Bank PLC, 7.75%, Series IV (United Kingdom) | 816,237 | 21,148,701 | |||||||||||||
National Westminster Bank PLC, 7.763%, Series C (United Kingdom) | 448,873 | 11,527,058 |
See accompanying notes to financial statements.
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COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
June 30, 2015 (Unaudited)
Number of Shares | Value | ||||||||||||||
RBS Capital Funding Trust VI, 6.25%, Series F (United Kingdom) | 296,822 | $ | 7,298,853 | ||||||||||||
RBS Capital Funding Trust VII, 6.08%, Series G (United Kingdom) | 939,879 | 22,961,244 | |||||||||||||
80,121,704 | |||||||||||||||
DIVERSIFIED FINANCIAL SERVICES | 0.2% | ||||||||||||||
State Street Corp., 6.00% | 71,754 | 1,796,002 | |||||||||||||
State Street Corp., 5.90%, Series D | 293,940 | 7,545,440 | |||||||||||||
9,341,442 | |||||||||||||||
ELECTRIC—INTEGRATED | 0.5% | ||||||||||||||
Integrys Energy Group, 6.00%, due 8/1/73 | 713,027 | 18,987,909 | |||||||||||||
NextEra Energy Capital Holdings, 5.125%, due 11/15/72, Series I | 60,074 | 1,357,072 | |||||||||||||
20,344,981 | |||||||||||||||
FINANCE | 2.5% | ||||||||||||||
INVESTMENT ADVISORY SERVICES | 0.3% | ||||||||||||||
Affiliated Managers Group, 6.375%, due 8/15/42 | 479,217 | 12,330,254 | |||||||||||||
INVESTMENT BANKER/BROKER | 2.2% | ||||||||||||||
Goldman Sachs Group, 5.95%, Series I | 220,000 | 5,480,200 | |||||||||||||
Goldman Sachs Group, 6.375%, Series K | 289,037 | 7,506,291 | |||||||||||||
Morgan Stanley, 6.875% | 1,486,697 | 39,665,076 | |||||||||||||
Morgan Stanley, 6.375%, Series I | 1,142,931 | 29,099,023 | |||||||||||||
81,750,590 | |||||||||||||||
TOTAL FINANCE | 94,080,844 | ||||||||||||||
INDUSTRIALS—CHEMICALS | 1.4% | ||||||||||||||
CHS, 6.75% | 833,495 | 21,187,443 | |||||||||||||
CHS, 7.50%, Series 4 | 337,525 | 9,126,676 | |||||||||||||
CHS, 7.10%, Series II | 931,510 | 24,396,247 | |||||||||||||
54,710,366 | |||||||||||||||
INSURANCE | 5.7% | ||||||||||||||
LIFE/HEALTH INSURANCE—FOREIGN | 0.4% | ||||||||||||||
Aegon NV, 6.50% (Netherlands) | 597,614 | 15,257,085 |
See accompanying notes to financial statements.
10
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
June 30, 2015 (Unaudited)
Number of Shares | Value | ||||||||||||||
MULTI-LINE | 2.0% | ||||||||||||||
Allstate Corp., 6.625%, Series E | 808,136 | $ | 21,181,245 | ||||||||||||
Hanover Insurance Group/The, 6.35%, due 3/30/53 | 408,438 | 10,161,938 | |||||||||||||
Hartford Financial Services Group, 7.875%, due 4/15/42 | 662,960 | 19,716,430 | |||||||||||||
Kemper Corp., 7.375%, due 2/27/54 | 151,260 | 4,008,390 | |||||||||||||
WR Berkley Corp., 5.625%, due 4/30/53 | 853,032 | 20,634,844 | |||||||||||||
75,702,847 | |||||||||||||||
MULTI-LINE—FOREIGN | 2.2% | ||||||||||||||
ING Groep N.V., 7.05% (Netherlands) | 1,002,916 | 25,885,262 | |||||||||||||
ING Groep N.V., 7.20% (Netherlands) | 954,940 | 24,618,353 | |||||||||||||
ING Groep N.V., 7.375% (Netherlands) | 1,257,395 | 31,409,727 | |||||||||||||
81,913,342 | |||||||||||||||
REINSURANCE | 0.4% | ||||||||||||||
Reinsurance Group of America, 6.20%, due 9/15/42 | 561,870 | 15,299,720 | |||||||||||||
REINSURANCE—FOREIGN | 0.7% | ||||||||||||||
Aspen Insurance Holdings Ltd., 5.95% (Bermuda) | 505,268 | 12,732,754 | |||||||||||||
Aspen Insurance Holdings Ltd., 7.25% (Bermuda) | 278,689 | 7,282,143 | |||||||||||||
Axis Capital Holdings Ltd., 6.875%, Series C (Bermuda) | 320,272 | 8,214,977 | |||||||||||||
28,229,874 | |||||||||||||||
TOTAL INSURANCE | 216,402,868 | ||||||||||||||
INTEGRATED TELECOMMUNICATIONS SERVICES | 0.7% | ||||||||||||||
Qwest Corp., 6.125%, due 6/1/53 | 465,664 | 11,595,034 | |||||||||||||
Qwest Corp., 6.875%, due 10/1/54 | 324,973 | 8,407,051 | |||||||||||||
Qwest Corp., 7.00%, due 4/1/52 | 248,907 | 6,384,465 | |||||||||||||
26,386,550 | |||||||||||||||
PIPELINES | 0.1% | ||||||||||||||
NuStar Logistics LP, 7.625%, due 1/15/43 | 228,296 | 6,049,844 | |||||||||||||
REAL ESTATE | 10.8% | ||||||||||||||
DIVERSIFIED | 3.6% | ||||||||||||||
Colony Capital, 7.125% | 449,075 | 10,445,485 | |||||||||||||
Colony Financial, 8.50%, Series A | 454,820 | 11,761,645 | |||||||||||||
Coresite Realty Corp., 7.25%, Series A | 406,311 | 10,584,402 | |||||||||||||
DuPont Fabros Technology, 7.875%, Series A | 568,329 | 14,395,774 |
See accompanying notes to financial statements.
11
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
June 30, 2015 (Unaudited)
Number of Shares | Value | ||||||||||||||
Equity Commonwealth, 6.50%, Series D | 402,733 | $ | 9,802,521 | ||||||||||||
National Retail Properties, 5.70%, Series E | 697,897 | 16,903,065 | |||||||||||||
NorthStar Realty Finance Corp., 8.50%, Series D | 348,434 | 8,682,975 | |||||||||||||
NorthStar Realty Finance Corp., 8.75%, Series E | 545,516 | 13,752,458 | |||||||||||||
Retail Properties of America, 7.00% | 506,582 | 13,388,962 | |||||||||||||
Urstadt Biddle Properties, 7.125%, Series F | 273,816 | 7,190,408 | |||||||||||||
Vornado Realty Trust, 6.625%, Series G | 207,904 | 5,230,865 | |||||||||||||
Vornado Realty Trust, 5.40%, Series L | 318,000 | 7,107,300 | |||||||||||||
Wells Fargo Real Estate Investment Corp., 6.375%, Series A | 301,681 | 7,717,000 | |||||||||||||
136,962,860 | |||||||||||||||
HOTEL | 1.9% | ||||||||||||||
Chesapeake Lodging Trust, 7.75%, Series A | 395,206 | 10,571,760 | |||||||||||||
Hersha Hospitality Trust, 8.00%, Series B | 292,369 | 7,541,658 | |||||||||||||
Hersha Hospitality Trust, 6.875%, Series C | 199,569 | 5,178,816 | |||||||||||||
Hospitality Properties Trust, 7.125%, Series D | 357,406 | 9,131,723 | |||||||||||||
LaSalle Hotel Properties, 6.375%, Series I | 360,722 | 9,342,700 | |||||||||||||
Pebblebrook Hotel Trust, 7.875%, Series A | 300,977 | 7,708,021 | |||||||||||||
Pebblebrook Hotel Trust, 6.50%, Series C | 170,000 | 4,311,200 | |||||||||||||
Summit Hotel Properties, 7.125% | 227,800 | 5,900,020 | |||||||||||||
Sunstone Hotel Investors, 8.00%, Series D | 435,870 | 11,463,381 | |||||||||||||
71,149,279 | |||||||||||||||
INDUSTRIALS | 0.5% | ||||||||||||||
First Potomac Realty Trust, 7.75%, Series A | 461,658 | 11,818,445 | |||||||||||||
Gramercy Property Trust, 7.125%, Series B | 252,096 | 6,680,544 | |||||||||||||
18,498,989 | |||||||||||||||
MORTGAGE | 0.2% | ||||||||||||||
Annaly Capital Management, 7.50%, Series D | 346,700 | 8,331,201 | |||||||||||||
OFFICE | 1.8% | ||||||||||||||
American Realty Capital Properties, 6.70%, Series F | 1,784,589 | 42,847,982 | |||||||||||||
Corporate Office Properties Trust, 7.375%, Series L | 352,000 | 9,257,600 | |||||||||||||
Hudson Pacific Properties, 8.375%, Series B | 230,908 | 5,934,336 | |||||||||||||
PS Business Parks, 6.45%, Series S | 217,689 | 5,529,301 | |||||||||||||
PS Business Parks, 6.00%, Series T | 250,362 | 6,163,912 | |||||||||||||
69,733,131 |
See accompanying notes to financial statements.
12
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
June 30, 2015 (Unaudited)
Number of Shares | Value | ||||||||||||||
RESIDENTIAL | 0.3% | ||||||||||||||
APARTMENT | 0.1% | ||||||||||||||
Apartment Investment & Management Co., 6.875% | 240,000 | $ | 6,561,600 | ||||||||||||
MANUFACTURED HOME | 0.2% | ||||||||||||||
Equity Lifestyle Properties, 6.75%, Series C | 261,988 | 6,785,489 | |||||||||||||
TOTAL RESIDENTIAL | 13,347,089 | ||||||||||||||
SELF STORAGE | 0.5% | ||||||||||||||
Public Storage, 5.875%, Series A | 264,256 | 6,593,187 | |||||||||||||
Public Storage, 5.75%, Series T | 140,359 | 3,412,127 | |||||||||||||
Public Storage, 5.375%, Series V | 374,906 | 8,772,801 | |||||||||||||
18,778,115 | |||||||||||||||
SHOPPING CENTERS | 2.0% | ||||||||||||||
COMMUNITY CENTER | 1.1% | ||||||||||||||
Cedar Realty Trust, 7.25%, Series B | 447,900 | 11,421,450 | |||||||||||||
DDR Corp., 6.50%, Series J | 236,707 | 6,025,377 | |||||||||||||
Kite Realty Group Trust, 8.25%, Series A | 331,565 | 8,514,257 | |||||||||||||
Saul Centers, 6.875%, Series C | 330,731 | 8,684,996 | |||||||||||||
WP GLIMCHER, 7.50%, Series H | 214,700 | 5,807,635 | |||||||||||||
40,453,715 | |||||||||||||||
REGIONAL MALL | 0.9% | ||||||||||||||
CBL & Associates Properties, 7.375%, Series D | 853,857 | 21,457,427 | |||||||||||||
Pennsylvania REIT, 8.25%, Series A | 245,069 | 6,513,934 | |||||||||||||
Taubman Centers, 6.25%, Series K | 280,000 | 7,120,400 | |||||||||||||
35,091,761 | |||||||||||||||
TOTAL SHOPPING CENTERS | 75,545,476 | ||||||||||||||
TOTAL REAL ESTATE | 412,346,140 | ||||||||||||||
TRANSPORT—MARINE—FOREIGN | 0.4% | ||||||||||||||
Seaspan Corp., 6.375%, due 4/30/19 (Hong Kong) | 209,947 | 5,301,162 | |||||||||||||
Seaspan Corp., 9.50%, Series C (Hong Kong) | 312,760 | 8,078,591 | |||||||||||||
Teekay Offshore Partners LP, 7.25%, Series A (Marshall Islands) | 150,946 | 3,079,298 | |||||||||||||
16,459,051 |
See accompanying notes to financial statements.
13
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
June 30, 2015 (Unaudited)
Number of Shares | Value | ||||||||||||||
UTILITIES | 0.6% | ||||||||||||||
PPL Capital Funding, 5.90%, due 4/30/73, Series B | 257,400 | $ | 6,375,798 | ||||||||||||
SCE Trust III, 5.75% | 590,928 | 15,730,503 | |||||||||||||
22,106,301 | |||||||||||||||
TOTAL PREFERRED SECURITIES—$25 PAR VALUE (Identified cost—$1,282,795,358) | 1,320,903,678 | ||||||||||||||
PREFERRED SECURITIES—CAPITAL SECURITIES | 60.7% | ||||||||||||||
BANKS | 16.5% | ||||||||||||||
AgriBank FCB, 6.875% | 127,000 | 13,374,687 | |||||||||||||
Ally Financial, 7.00%, Series G, 144Aa | 22,807 | 23,159,797 | |||||||||||||
Bank of America Corp., 6.10%, Series AA | 18,557,000 | 18,348,234 | |||||||||||||
Bank of America Corp., 6.50%, Series Z | 42,984,000 | 44,542,170 | |||||||||||||
Citigroup, 5.875%, Series O | 51,550,000 | 51,727,847 | |||||||||||||
Citigroup, 5.95%, Series P | 37,000,000 | 35,758,650 | |||||||||||||
Citizens Financial Group, 5.50%, 144Aa | 10,100,000 | 9,841,188 | |||||||||||||
CoBank ACB, 6.25%, 144Aa | 216,000 | 22,254,761 | |||||||||||||
CoBank ACB, 6.125%, Series G | 200,200 | 18,681,162 | |||||||||||||
Countrywide Capital III, 8.05%, due 6/15/27, Series B | 3,000,000 | 3,715,158 | |||||||||||||
Farm Credit Bank of Texas, 10.00%, Series I | 22,200 | 27,590,437 | |||||||||||||
Goldman Sachs Capital I, 6.345%, due 2/15/34 | 10,790,000 | 12,550,572 | |||||||||||||
Goldman Sachs Capital II, 4.00%, (FRN) | 6,278,000 | 4,794,823 | |||||||||||||
Goldman Sachs Group/The, 5.375%, Series M | 23,636,000 | 23,379,549 | |||||||||||||
Huntington Bancshares, 8.50%, Series A (Convertible) | 10,461 | 14,017,740 | |||||||||||||
JPMorgan Chase & Co., 7.90%, Series Ib | 71,450,000 | 75,665,550 | |||||||||||||
JPMorgan Chase & Co., 6.75%, Series S | 39,225,000 | 41,958,198 | |||||||||||||
JPMorgan Chase & Co., 6.125%, Series U | 12,400,000 | 12,466,340 | |||||||||||||
JPMorgan Chase & Co., 6.10%, Series X | 7,250,000 | 7,284,438 | |||||||||||||
JPMorgan Chase & Co., 5.30%, Series Z | 13,250,000 | 13,185,075 | |||||||||||||
PNC Financial Services Group, 6.75% | 20,765,000 | 23,023,194 | |||||||||||||
Sovereign Real Estate Investment Trust, 12.00%, 144Aa | 4,090 | 5,363,013 | |||||||||||||
Wells Fargo & Co., 7.98%, Series K | 58,345,000 | 63,304,325 | |||||||||||||
Wells Fargo & Co., 5.90%, Series S | 15,526,000 | 15,603,630 | |||||||||||||
Wells Fargo & Co., 5.875%, Series U | 32,600,000 | 33,416,630 | |||||||||||||
Zions Bancorp, 7.20%, Series J | 14,714,000 | 15,670,410 | |||||||||||||
630,677,578 |
See accompanying notes to financial statements.
14
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
June 30, 2015 (Unaudited)
Number of Shares | Value | ||||||||||||||
BANKS—FOREIGN | 21.0% | ||||||||||||||
Baggot Securities Ltd., 10.24%, 144A (EUR) (Ireland)a | 3,338,000 | $ | 3,847,522 | ||||||||||||
Banco Bilbao Vizcaya Argentaria SA, 9.00% (Spain) | 16,200,000 | 17,455,500 | |||||||||||||
Banco Bilbao Vizcaya Argentaria SA, 6.75%, (EUR) (Spain) | 15,400,000 | 17,114,207 | |||||||||||||
Bank of Ireland, 7.375%, (EUR) (Ireland) | 15,400,000 | 17,112,885 | |||||||||||||
Barclays Bank PLC, 7.625%, due 11/21/22 (United Kingdom) | 13,800,000 | 15,741,315 | |||||||||||||
Barclays Bank PLC, 6.86%, 144A (United Kingdom)a | 18,938,000 | 21,305,250 | |||||||||||||
Barclays PLC, 8.00% (United Kingdom) (EUR) | 8,000,000 | 9,498,518 | |||||||||||||
Barclays PLC, 8.25% (United Kingdom) | 26,024,000 | 27,532,351 | |||||||||||||
BBVA Bancomer SA Texas, 6.75%, due 9/30/22, 144A (Mexico)a | 10,000,000 | 11,037,500 | |||||||||||||
BNP Paribas, 7.195%, 144A (France)a | 21,621,000 | 25,566,833 | |||||||||||||
Credit Agricole SA, 7.875%, 144A (France)a | 13,982,000 | 14,417,441 | |||||||||||||
Credit Suisse AG, 6.50%, due 8/8/23, 144A (Switzerland)a | 9,750,000 | 10,687,082 | |||||||||||||
Credit Suisse Group AG, 7.50%, 144A (Switzerland)a | 26,559,000 | 27,734,395 | |||||||||||||
Deutsche Bank AG, 7.50% (Germany) | 29,600,000 | 29,563,000 | |||||||||||||
Dresdner Funding Trust I, 8.151%, due 6/30/31, 144A (Germany)a | 35,716,945 | 44,690,827 | |||||||||||||
HBOS Capital Funding LP, 6.85% (United Kingdom) | 7,296,000 | 7,465,005 | |||||||||||||
HSBC Capital Funding LP, 10.176%, 144A (United Kingdom)a | 27,454,000 | 41,935,985 | |||||||||||||
HSBC Holdings PLC, 6.375% (United Kingdom) | 24,450,000 | 24,541,688 | |||||||||||||
HSBC Holdings PLC, 6.375% (United Kingdom) | 37,700,000 | 37,982,750 | |||||||||||||
Industrial & Commercial Bank of China Ltd., 6.00%, 144A (China)a | 16,800,000 | 17,397,240 | |||||||||||||
Itau Unibanco Holding SA/Cayman Island, 5.50%, due 8/6/22, 144A (Brazil)a | 14,400,000 | 14,558,400 | |||||||||||||
Itau Unibanco Holding SA/Cayman Island, 6.20%, due 12/21/21, 144A (Brazil)a | 9,000,000 | 9,555,750 | |||||||||||||
Lloyds Banking Group PLC, 7.50% (United Kingdom) | 38,050,000 | 39,286,625 | |||||||||||||
Lloyds Banking Group PLC, 6.657%, 144A (United Kingdom)a | 6,979,000 | 7,838,289 |
See accompanying notes to financial statements.
15
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
June 30, 2015 (Unaudited)
Number of Shares | Value | ||||||||||||||
Nationwide Building Society, 10.25%, due 12/6/99, (GBP) (United Kingdom) | 29,156,000 | $ | 58,790,179 | ||||||||||||
Rabobank Nederland, 8.40% (Netherlands) | 14,450,000 | 15,647,934 | |||||||||||||
Rabobank Nederland, 11.00%, 144A (Netherlands)a | 44,303,000 | 56,320,189 | |||||||||||||
Royal Bank of Scotland Group PLC, 7.648% (United Kingdom) | 38,629,000 | 48,286,250 | |||||||||||||
Santander UK Group Holdings PLC, 7.375%, (GBP) (United Kingdom) | 9,700,000 | 15,199,409 | |||||||||||||
Societe Generale SA, 8.875% (France) (GBP) | 5,442,000 | 9,613,172 | |||||||||||||
Standard Chartered PLC, 6.50%, 144A (United Kingdom)a | 29,200,000 | 29,481,108 | |||||||||||||
Standard Chartered PLC, 7.014%, 144A (United Kingdom)a | 8,950,000 | 9,917,764 | |||||||||||||
UBS AG, 7.625%, due 8/17/22 (Switzerland) | 18,000,000 | 21,125,646 | |||||||||||||
UBS Group AG, 7.00% (Switzerland) | 23,800,000 | 24,216,500 | |||||||||||||
UBS Group AG, 7.125% (Switzerland) | 19,600,000 | 20,439,860 | |||||||||||||
802,904,369 | |||||||||||||||
FINANCE—DIVERSIFIED FINANCIAL SERVICES | 3.7% | ||||||||||||||
Depository Trust & Clearing Corp/The, 4.875%, Series C, 144Aa | 24,000,000 | 23,940,000 | |||||||||||||
General Electric Capital Corp., 7.125%, Series A | 54,100,000 | 62,485,500 | |||||||||||||
General Electric Capital Corp., 6.25%, Series B | 28,600,000 | 31,317,000 | |||||||||||||
State Street Corp., 5.25%, Series F | 22,975,000 | 23,118,594 | |||||||||||||
140,861,094 | |||||||||||||||
INSURANCE | 15.4% | ||||||||||||||
LIFE/HEALTH INSURANCE | 5.4% | ||||||||||||||
MetLife, 5.25%, Series C | 32,001,000 | 31,800,994 | |||||||||||||
MetLife Capital Trust IV, 7.875%, due 12/15/67, 144Aa | 36,697,000 | 46,183,175 | |||||||||||||
MetLife Capital Trust X, 9.25%, due 4/8/68, 144Aa | 33,095,000 | 46,581,212 | |||||||||||||
Principal Financial Group, 4.70%, due 5/15/55 | 23,450,000 | 23,391,375 | |||||||||||||
Provident Financing Trust I, 7.405%, due 3/15/38 | 15,475,000 | 18,028,375 | |||||||||||||
Prudential Financial, 5.375%, due 5/15/45 | 19,400,000 | 19,157,500 | |||||||||||||
Prudential Financial, 5.625%, due 6/15/43, (FRN) | 21,275,000 | 22,104,725 | |||||||||||||
207,247,356 |
See accompanying notes to financial statements.
16
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
June 30, 2015 (Unaudited)
Number of Shares | Value | ||||||||||||||
LIFE/HEALTH INSURANCE—FOREIGN | 3.0% | ||||||||||||||
Dai-ichi Life Insurance Co. Ltd., 5.10%, 144A (Japan)a | 20,200,000 | $ | 21,412,000 | ||||||||||||
Dai-Ichi Mutual Life, 7.25%, 144A (Japan)a | 17,698,000 | 20,717,721 | |||||||||||||
La Mondiale Vie, 7.625% (France) | 31,250,000 | 33,939,500 | |||||||||||||
Nippon Life Insurance Co., 5.10%, due 10/16/44, 144A (Japan)a | 22,200,000 | 23,337,750 | |||||||||||||
Sumitomo Life Insurance Co., 6.50%, due 9/20/73, 144A (Japan)a | 15,500,000 | 17,611,875 | |||||||||||||
117,018,846 | |||||||||||||||
MULTI-LINE | 0.5% | ||||||||||||||
American International Group, 8.175%, due 5/15/68, (FRN) | 15,209,000 | 20,174,738 | |||||||||||||
MULTI-LINE—FOREIGN | 1.4% | ||||||||||||||
Aviva PLC, 8.25% (United Kingdom) | 14,517,000 | 15,881,293 | |||||||||||||
AXA SA, 8.60%, due 12/15/30 (France) | 13,198,000 | 17,753,356 | |||||||||||||
AXA SA, 6.463%, 144A (France)a | 19,190,000 | 19,621,775 | |||||||||||||
53,256,424 | |||||||||||||||
PROPERTY CASUALTY | 1.7% | ||||||||||||||
Farmers Exchange Capital II, 6.151%, due 11/1/53, 144Aa | 7,960,000 | 8,520,798 | |||||||||||||
Liberty Mutual Group, 7.80%, due 3/7/87, 144Aa | 46,977,000 | 55,785,187 | |||||||||||||
64,305,985 | |||||||||||||||
PROPERTY CASUALTY—FOREIGN | 2.7% | ||||||||||||||
Atradius Finance BV, 5.25%, due 9/23/44, (EUR) (Netherlands) | 17,300,000 | 18,206,060 | |||||||||||||
Mitsui Sumitomo Insurance Co., Ltd., 7.00%, due 3/15/72, 144A (Japan)a | 15,036,000 | 17,573,325 | |||||||||||||
QBE Capital Funding III Ltd., 7.25%, due 5/24/41, 144A (Australia)a | 19,752,000 | 21,920,059 | |||||||||||||
QBE Insurance Group Ltd., 6.75%, due 12/2/44 (Australia) | 28,628,000 | 30,202,540 | |||||||||||||
RL Finance Bonds No. 2 PLC, 6.125%, due 11/30/43, (GBP) (United Kingdom) | 9,103,000 | 15,074,725 | |||||||||||||
102,976,709 |
See accompanying notes to financial statements.
17
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
June 30, 2015 (Unaudited)
Number of Shares | Value | ||||||||||||||
REINSURANCE—FOREIGN | 0.7% | ||||||||||||||
Aquarius + Investments PLC, 8.25% (Switzerland) | 23,800,000 | $ | 25,823,000 | ||||||||||||
TOTAL INSURANCE | 590,803,058 | ||||||||||||||
INTEGRATED TELECOMMUNICATIONS SERVICES | 0.8% | ||||||||||||||
Centaur Funding Corp., 9.08%, due 4/21/20, 144A (Cayman Islands)a | 24,262 | 29,986,316 | |||||||||||||
PIPELINES | 0.9% | ||||||||||||||
Enterprise Products Operating LLC, 7.034%, due 1/15/68, Series B | 12,025,000 | 12,956,937 | |||||||||||||
Transcanada Trust, 5.625%, due 5/20/75 (Canada) | 20,180,000 | 20,454,206 | |||||||||||||
33,411,143 | |||||||||||||||
UTILITIES | 2.4% | ||||||||||||||
ELECTRIC UTILITIES | 0.3% | ||||||||||||||
FPL Group Capital, 7.30%, due 9/1/67, Series D | 12,200,000 | 12,671,408 | |||||||||||||
ELECTRIC UTILITIES—FOREIGN | 1.2% | ||||||||||||||
Enel SpA, 8.75%, due 9/24/73, 144A (Italy)a | 40,187,000 | 46,265,284 | |||||||||||||
MULTI-UTILITIES | 0.9% | ||||||||||||||
Dominion Resources, 5.75%, due 10/1/54 | 21,177,000 | 22,129,563 | |||||||||||||
Dominion Resources, 7.50%, due 6/30/66, Series A | 3,459,000 | 3,277,402 | |||||||||||||
PPL Capital Funding, 6.70%, due 3/30/67, Series A | 7,988,000 | 7,057,094 | |||||||||||||
32,464,059 | |||||||||||||||
TOTAL UTILITIES | 91,400,751 | ||||||||||||||
TOTAL PREFERRED SECURITIES—CAPITAL SECURITIES (Identified cost—$2,231,022,443) | 2,320,044,309 | ||||||||||||||
Principal Amount | |||||||||||||||
CORPORATE BONDS—INTEGRATED TELECOMMUNICATIONS SERVICES | 0.9% | ||||||||||||||
Embarq Corp., 7.995%, due 6/1/36 | $ | 16,660,000 | 18,512,592 | ||||||||||||
Frontier Communications Corp., 9.00%, due 8/15/31 | 17,850,000 | 16,332,750 | |||||||||||||
TOTAL CORPORATE BONDS (Identified cost—$37,088,124) | 34,845,342 |
See accompanying notes to financial statements.
18
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
June 30, 2015 (Unaudited)
Number of Shares | Value | ||||||||||||||
SHORT-TERM INVESTMENTS | 1.4% | ||||||||||||||
MONEY MARKET FUNDS | |||||||||||||||
State Street Institutional Treasury Money Market Fund, 0.00%c | 52,400,000 | $ | 52,400,000 | ||||||||||||
TOTAL SHORT-TERM INVESTMENTS (Identified Cost—$52,400,000) | 52,400,000 | ||||||||||||||
TOTAL INVESTMENTS (Identified cost—$3,603,305,925) | 97.5 | % | 3,728,193,329 | ||||||||||||
OTHER ASSETS IN EXCESS OF LIABILITIES | 2.5 | 95,462,661 | |||||||||||||
NET ASSETS | 100.0 | % | $ | 3,823,655,990 |
See accompanying notes to financial statements.
19
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS—(Continued)
June 30, 2015 (Unaudited)
Forward foreign currency exchange contracts outstanding at June 30, 2015 were as follows:
Counterparty | Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Appreciation (Depreciation) | |||||||||||||||
Brown Brothers Harriman | EUR | 45,050,615 | USD | 49,414,668 | 7/2/15 | $ | (809,991 | ) | |||||||||||
Brown Brothers Harriman | EUR | 10,977,866 | USD | 12,370,628 | 7/2/15 | 131,959 | |||||||||||||
Brown Brothers Harriman | GBP | 53,928,295 | USD | 82,282,552 | 7/2/15 | (2,452,276 | ) | ||||||||||||
Brown Brothers Harriman | GBP | 7,697,460 | USD | 11,729,005 | 7/2/15 | (365,629 | ) | ||||||||||||
Brown Brothers Harriman | USD | 96,899,721 | GBP | 61,625,755 | 7/2/15 | (70,260 | ) | ||||||||||||
Brown Brothers Harriman | USD | 62,414,607 | EUR | 56,028,481 | 7/2/15 | 48,721 | |||||||||||||
Brown Brothers Harriman | EUR | 59,088,663 | USD | 65,844,447 | 8/4/15 | (58,669 | ) | ||||||||||||
Brown Brothers Harriman | GBP | 62,857,912 | USD | 98,805,220 | 8/4/15 | 61,838 | |||||||||||||
$ | (3,514,307 | ) |
Glossary of Portfolio Abbreviations
EUR Euro Currency
FRN Floating Rate Note
GBP Great British Pound
REIT Real Estate Investment Trust
USD United States Dollar
Note: Percentages indicated are based on the net assets of the Fund.
a Resale is restricted to qualified institutional investors. Aggregate holdings equal 21.7% of the net assets of the Fund, of which 0.0% are illiquid.
b A portion of the security is segregated as collateral for open forward foreign currency exchange contracts. $13,767,000 in aggregate has been segregated as collateral.
c Rate quoted represents the annualized seven-day yield of the Fund.
See accompanying notes to financial statements.
20
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2015 (Unaudited)
ASSETS: | |||||||
Investments in securities, at value (Identified cost—$3,603,305,925) | $ | 3,728,193,329 | |||||
Cash | 56,587,415 | ||||||
Foreign currency, at value (Identified cost—$2,350,000) | 2,347,833 | ||||||
Receivable for: | |||||||
Dividends and interest | 35,408,676 | ||||||
Investment securities sold | 27,446,962 | ||||||
Fund shares sold | 12,868,303 | ||||||
Unrealized appreciation on forward foreign currency exchange contracts | 242,518 | ||||||
Other assets | 40,226 | ||||||
Total Assets | 3,863,135,262 | ||||||
LIABILITIES: | |||||||
Unrealized depreciation on forward foreign currency exchange contracts | 3,756,825 | ||||||
Payable for: | |||||||
Investment securities purchased | 16,396,501 | ||||||
Dividends declared | 8,769,706 | ||||||
Fund shares redeemed | 7,332,876 | ||||||
Investment advisory fees | 2,023,833 | ||||||
Shareholder servicing fees | 718,439 | ||||||
Administration fees | 157,792 | ||||||
Distribution fees | 33,841 | ||||||
Directors' fees | 865 | ||||||
Other liabilities | 288,594 | ||||||
Total Liabilities | 39,479,272 | ||||||
NET ASSETS | $ | 3,823,655,990 | |||||
NET ASSETS consist of: | |||||||
Paid-in capital | $ | 3,695,147,040 | |||||
Dividends in excess of net investment income | (13,922,533 | ) | |||||
Accumulated undistributed net realized gain | 21,064,238 | ||||||
Net unrealized appreciation | 121,367,245 | ||||||
$ | 3,823,655,990 |
See accompanying notes to financial statements.
21
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES—(Continued)
June 30, 2015 (Unaudited)
CLASS A SHARES: | |||||||
NET ASSETS | �� | $ | 629,327,843 | ||||
Shares issued and outstanding ($0.001 par value common stock outstanding) | 46,508,190 | ||||||
Net asset value and redemption price per share | $ | 13.53 | |||||
Maximum offering price per share ($13.53 ÷ 0.9625)a | $ | 14.06 | |||||
CLASS C SHARES: | |||||||
NET ASSETS | $ | 611,540,407 | |||||
Shares issued and outstanding ($0.001 par value common stock outstanding) | 45,404,989 | ||||||
Net asset value and offering price per shareb | $ | 13.47 | |||||
CLASS I SHARES: | |||||||
NET ASSETS | $ | 2,582,657,664 | |||||
Shares issued and outstanding ($0.001 par value common stock outstanding) | 190,490,756 | ||||||
Net asset value, offering and redemption price per share | $ | 13.56 | |||||
CLASS R SHARES: | |||||||
NET ASSETS | $ | 120,075 | |||||
Shares issued and outstanding ($0.001 par value common stock outstanding) | 8,858 | ||||||
Net asset value, offering and redemption price per share | $ | 13.56 | |||||
CLASS Z SHARES: | |||||||
NET ASSETS | $ | 10,001 | |||||
Shares issued and outstanding ($0.001 par value common stock outstanding) | 738 | ||||||
Net asset value, offering and redemption price per share | $ | 13.55 |
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.
22
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2015 (Unaudited)
Investment Income: | |||||||
Dividend income | $ | 48,529,476 | |||||
Interest income (net of $23,588 of foreign withholding tax) | 60,746,402 | ||||||
Total Investment Income | 109,275,878 | ||||||
Expenses: | |||||||
Investment advisory fees | 12,590,752 | ||||||
Distribution fees—Class A | 762,719 | ||||||
Distribution fees—Class C | 2,189,243 | ||||||
Distribution fees—Class R | 48 | ||||||
Shareholder servicing fees—Class A | 305,088 | ||||||
Shareholder servicing fees—Class C | 729,747 | ||||||
Shareholder servicing fees—Class I | 545,677 | ||||||
Administration fees | 1,120,561 | ||||||
Transfer agent fees and expenses | 634,043 | ||||||
Registration and filing fees | 175,373 | ||||||
Directors' fees and expenses | 109,261 | ||||||
Shareholder reporting expenses | 104,453 | ||||||
Custodian fees and expenses | 89,841 | ||||||
Professional fees | 50,894 | ||||||
Line of credit fees | 9,118 | ||||||
Miscellaneous | 73,834 | ||||||
Total Expenses | 19,490,652 | ||||||
Reduction of Expenses (See Note 2) | (1,114,377 | ) | |||||
Net Expenses | 18,376,275 | ||||||
Net Investment Income | 90,899,603 | ||||||
Net Realized and Unrealized Gain (Loss): | |||||||
Net realized gain (loss) on: | |||||||
Investments | 8,692,775 | ||||||
Foreign currency transactions | 5,501,441 | ||||||
Net realized gain | 14,194,216 | ||||||
Net change in unrealized appreciation (depreciation) on: | |||||||
Investments | (17,024,845 | ) | |||||
Foreign currency translations | (4,363,763 | ) | |||||
Net change in unrealized appreciation (depreciation) | (21,388,608 | ) | |||||
Net realized and unrealized loss | (7,194,392 | ) | |||||
Net Increase in Net Assets Resulting from Operations | $ | 83,705,211 |
See accompanying notes to financial statements.
23
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
For the Six Months Ended June 30, 2015 | For the Year Ended December 31, 2014 | ||||||||||
Change in Net Assets: | |||||||||||
From Operations: | |||||||||||
Net investment income | $ | 90,899,603 | $ | 145,019,006 | |||||||
Net realized gain | 14,194,216 | 25,996,560 | |||||||||
Net change in unrealized appreciation (depreciation) | (21,388,608 | ) | 104,995,530 | ||||||||
Net increase in net assets resulting from operations | 83,705,211 | 276,011,096 | |||||||||
Dividends and Distributions to Shareholders from: | |||||||||||
Net investment income: | |||||||||||
Class A | (17,069,764 | ) | (26,885,442 | ) | |||||||
Class C | (14,356,590 | ) | (22,470,913 | ) | |||||||
Class I | (71,993,574 | ) | (89,488,900 | ) | |||||||
Class R | (792 | ) | (74 | ) | |||||||
Class Z | (297 | ) | (86 | ) | |||||||
Net realized gain: | |||||||||||
Class A | — | (3,832,107 | ) | ||||||||
Class C | — | (3,748,666 | ) | ||||||||
Class I | — | (13,647,180 | ) | ||||||||
Class R | — | (69 | ) | ||||||||
Class Z | — | (69 | ) | ||||||||
Total dividends and distributions to shareholders | (103,421,017 | ) | (160,073,506 | ) | |||||||
Capital Stock Transactions: | |||||||||||
Increase in net assets from Fund share transactions | 678,992,998 | 908,623,008 | |||||||||
Total increase in net assets | 659,277,192 | 1,024,560,598 | |||||||||
Net Assets: | |||||||||||
Beginning of period | 3,164,378,798 | 2,139,818,200 | |||||||||
End of perioda | $ | 3,823,655,990 | $ | 3,164,378,798 |
a Includes dividends in excess of net investment income of $13,922,533 and $1,401,119, respectively.
See accompanying notes to financial statements.
24
COHEN & STEERS PREFERRED SECURITIES AND 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. It should be read in conjunction with the financial statements and notes thereto.
Class A | |||||||||||||||||||||||||||
For the Six Months Ended | For the Year Ended December 31, | For the Period May 3, 2010a through | |||||||||||||||||||||||||
Per Share Operating Performance: | June 30, 2015 | 2014 | 2013 | 2012 | 2011 | December 31, 2010 | |||||||||||||||||||||
Net asset value, beginning of period | $ | 13.56 | $ | 12.87 | $ | 13.34 | $ | 11.69 | $ | 12.10 | $ | 11.46 | |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment incomeb | 0.33 | 0.71 | 0.69 | 0.71 | 0.75 | 0.53 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | 0.02 | c | 0.76 | (0.35 | ) | 1.80 | (0.35 | ) | 0.52 | ||||||||||||||||||
Total from investment operations | 0.35 | 1.47 | 0.34 | 2.51 | 0.40 | 1.05 | |||||||||||||||||||||
Less dividends and distributions to shareholders from: | |||||||||||||||||||||||||||
Net investment income | (0.38 | ) | (0.69 | ) | (0.70 | ) | (0.73 | ) | (0.70 | ) | (0.34 | ) | |||||||||||||||
Net realized gain | — | (0.09 | ) | (0.06 | ) | (0.11 | ) | — | (0.04 | ) | |||||||||||||||||
Return of capital | — | — | (0.05 | ) | (0.02 | ) | (0.11 | ) | (0.03 | ) | |||||||||||||||||
Total dividends and distributions to shareholders | (0.38 | ) | (0.78 | ) | (0.81 | ) | (0.86 | ) | (0.81 | ) | (0.41 | ) | |||||||||||||||
Redemption fees retained by the Fund | — | — | — | — | 0.00 | d | 0.00 | d | |||||||||||||||||||
Net increase (decrease) in net asset value | (0.03 | ) | 0.69 | (0.47 | ) | 1.65 | (0.41 | ) | 0.64 | ||||||||||||||||||
Net asset value, end of period | $ | 13.53 | $ | 13.56 | $ | 12.87 | $ | 13.34 | $ | 11.69 | $ | 12.10 | |||||||||||||||
Total investment returne,f | 2.56 | %g | 11.61 | % | 2.55 | % | 22.04 | % | 3.32 | % | 9.22 | %g |
See accompanying notes to financial statements.
25
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
Class A | |||||||||||||||||||||||||||
For the Six Months Ended | For the Year Ended December 31, | For the Period May 3, 2010a through | |||||||||||||||||||||||||
Per Share Operating Performance: | June 30, 2015 | 2014 | 2013 | 2012 | 2011 | December 31, 2010 | |||||||||||||||||||||
Net assets, end of period (in millions) | $ | 629.3 | $ | 568.2 | $ | 425.5 | $ | 413.6 | $ | 136.4 | $ | 50.4 | |||||||||||||||
Ratio of expenses to average daily net assets (before expense reduction) | 1.18 | %h | 1.19 | % | 1.20 | % | 1.22 | %i | 1.29 | %i | 1.67 | %h,i | |||||||||||||||
Ratio of expenses to average daily net assets (net of expense reduction) | 1.15 | %h | 1.12 | % | 1.10 | % | 1.10 | %i | 1.06 | %i | 0.85 | %h,i | |||||||||||||||
Ratio of net investment income to average daily net assets (before expense reduction) | 4.87 | %h | 5.18 | % | 5.10 | % | 5.45 | %i | 5.95 | %i | 5.71 | %h,i | |||||||||||||||
Ratio of net investment income to average daily net assets (net of expense reduction) | 4.90 | %h | 5.25 | % | 5.20 | % | 5.57 | %i | 6.18 | %i | 6.53 | %h,i | |||||||||||||||
Portfolio turnover rate | 23 | %g | 41 | % | 56 | % | 39 | % | 44 | % | 31 | %g |
a Commencement of operations.
b Calculation based on average shares outstanding.
c The amount shown for a share outstanding throughout the period does not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund shares in relation to income earned and/or fluctuating market value of the investments of the Fund.
d Amount is less than $0.005.
e Does not reflect sales charges, which would reduce return.
f Return assumes the reinvestment of all dividends and distributions at NAV.
g Not annualized.
h Annualized.
i Non-class specific expenses are calculated at the Fund level and class specific expenses are calculated at the class level.
See accompanying notes to financial statements.
26
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
Class C | |||||||||||||||||||||||||||
For the Six Months Ended | For the Year Ended December 31, | For the Period May 3, 2010a through | |||||||||||||||||||||||||
Per Share Operating Performance: | June 30, 2015 | 2014 | 2013 | 2012 | 2011 | December 31, 2010 | |||||||||||||||||||||
Net asset value, beginning of period | $ | 13.49 | $ | 12.81 | $ | 13.29 | $ | 11.65 | $ | 12.06 | $ | 11.46 | |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment incomeb | 0.29 | 0.62 | 0.60 | 0.63 | 0.67 | 0.49 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | 0.02 | c | 0.75 | (0.36 | ) | 1.79 | (0.34 | ) | 0.49 | ||||||||||||||||||
Total from investment operations | 0.31 | 1.37 | 0.24 | 2.42 | 0.33 | 0.98 | |||||||||||||||||||||
Less dividends and distributions to shareholders from: | |||||||||||||||||||||||||||
Net investment income | (0.33 | ) | (0.60 | ) | (0.61 | ) | (0.65 | ) | (0.63 | ) | (0.31 | ) | |||||||||||||||
Net realized gain | — | (0.09 | ) | (0.06 | ) | (0.11 | ) | — | (0.04 | ) | |||||||||||||||||
Return of capital | — | — | (0.05 | ) | (0.02 | ) | (0.11 | ) | (0.03 | ) | |||||||||||||||||
Total dividends and distributions to shareholders | (0.33 | ) | (0.69 | ) | (0.72 | ) | (0.78 | ) | (0.74 | ) | (0.38 | ) | |||||||||||||||
Redemption fees retained by the Fund | — | — | — | — | 0.00 | d | 0.00 | d | |||||||||||||||||||
Net increase (decrease) in net asset value | (0.02 | ) | 0.68 | (0.48 | ) | 1.64 | (0.41 | ) | 0.60 | ||||||||||||||||||
Net asset value, end of period | $ | 13.47 | $ | 13.49 | $ | 12.81 | $ | 13.29 | $ | 11.65 | $ | 12.06 | |||||||||||||||
Total investment returne,f | 2.29 | %g | 10.85 | % | 1.83 | % | 21.31 | % | 2.69 | % | 8.62 | %g |
See accompanying notes to financial statements.
27
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
Class C | |||||||||||||||||||||||||||
For the Six Months Ended | For the Year Ended December 31, | For the Period May 3, 2010a through | |||||||||||||||||||||||||
Per Share Operating Performance: | June 30, 2015 | 2014 | 2013 | 2012 | 2011 | December 31, 2010 | |||||||||||||||||||||
Net assets, end of period (in millions) | $ | 611.5 | $ | 548.6 | $ | 465.8 | $ | 410.5 | $ | 152.1 | $ | 48.4 | |||||||||||||||
Ratio of expenses to average daily net assets (before expense reduction) | 1.83 | %h | 1.84 | % | 1.86 | % | 1.87 | %i | 1.94 | %i | 2.32 | %h,i | |||||||||||||||
Ratio of expenses to average daily net assets (net of expense reduction) | 1.80 | %h | 1.77 | % | 1.75 | % | 1.75 | %i | 1.71 | %i | 1.50 | %h,i | |||||||||||||||
Ratio of net investment income to average daily net assets (before expense reduction) | 4.22 | %h | 4.53 | % | 4.47 | % | 4.82 | %i | 5.36 | %i | 5.22 | %h,i | |||||||||||||||
Ratio of net investment income to average daily net assets (net of expense reduction) | 4.25 | %h | 4.60 | % | 4.58 | % | 4.94 | %i | 5.59 | %i | 6.04 | %h,i | |||||||||||||||
Portfolio turnover rate | 23 | %g | 41 | % | 56 | % | 39 | % | 44 | % | 31 | %g |
a Commencement of operations.
b Calculation based on average shares outstanding.
c The amount shown for a share outstanding throughout the period does not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund shares in relation to income earned and/or fluctuating market value of the investments of the Fund.
d Amount is less than $0.005.
e Return assumes the reinvestment of all dividends and distributions at NAV.
f Does not reflect sales charges, which would reduce return.
g Not annualized.
h Annualized.
i Non-class specific expenses are calculated at the Fund level and class specific expenses are calculated at the class level.
See accompanying notes to financial statements.
28
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
Class I | |||||||||||||||||||||||||||
For the Six Months Ended | For the Year Ended December 31, | For the Period May 3, 2010a through | |||||||||||||||||||||||||
Per Share Operating Performance: | June 30, 2015 | 2014 | 2013 | 2012 | 2011 | December 31, 2010 | |||||||||||||||||||||
Net asset value, beginning of period | $ | 13.58 | $ | 12.88 | $ | 13.36 | $ | 11.70 | $ | 12.10 | $ | 11.46 | |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment incomeb | 0.36 | 0.76 | 0.74 | 0.76 | 0.80 | 0.58 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | 0.02 | c | 0.76 | (0.37 | ) | 1.80 | (0.35 | ) | 0.49 | ||||||||||||||||||
Total from investment operations | 0.38 | 1.52 | 0.37 | 2.56 | 0.45 | 1.07 | |||||||||||||||||||||
Less dividends and distributions to shareholders from: | |||||||||||||||||||||||||||
Net investment income | (0.40 | ) | (0.73 | ) | (0.74 | ) | (0.77 | ) | (0.74 | ) | (0.36 | ) | |||||||||||||||
Net realized gain | — | (0.09 | ) | (0.06 | ) | (0.11 | ) | — | (0.04 | ) | |||||||||||||||||
Return of capital | — | — | (0.05 | ) | (0.02 | ) | (0.11 | ) | (0.03 | ) | |||||||||||||||||
Total dividends and distributions to shareholders | (0.40 | ) | (0.82 | ) | (0.85 | ) | (0.90 | ) | (0.85 | ) | (0.43 | ) | |||||||||||||||
Redemption fees retained by the Fund | — | — | — | — | 0.00 | d | 0.00 | d | |||||||||||||||||||
Net increase (decrease) in net asset value | (0.02 | ) | 0.70 | (0.48 | ) | 1.66 | (0.40 | ) | 0.64 | ||||||||||||||||||
Net asset value, end of period | $ | 13.56 | $ | 13.58 | $ | 12.88 | $ | 13.36 | $ | 11.70 | $ | 12.10 | |||||||||||||||
Total investment returne | 2.80 | %f | 12.00 | % | 2.82 | % | 22.52 | % | 3.74 | % | 9.39 | %f |
See accompanying notes to financial statements.
29
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
Class I | |||||||||||||||||||||||||||
For the Six Months Ended | For the Year Ended December 31, | For the Period May 3, 2010a through | |||||||||||||||||||||||||
Per Share Operating Performance: | June 30, 2015 | 2014 | 2013 | 2012 | 2011 | December 31, 2010 | |||||||||||||||||||||
Net assets, end of period (in millions) | $ | 2,582.7 | $ | 2,047.6 | $ | 1,248.5 | $ | 982.4 | $ | 413.7 | $ | 65.1 | |||||||||||||||
Ratio of expenses to average daily net assets (before expense reduction) | 0.88 | %g | 0.90 | % | 0.87 | % | 0.87 | %h | 0.94 | %h | 1.32 | %g,h | |||||||||||||||
Ratio of expenses to average daily net assets (net of expense reduction) | 0.80 | %g | 0.77 | % | 0.75 | % | 0.75 | %h | 0.71 | %h | 0.50 | %g,h | |||||||||||||||
Ratio of net investment income to average daily net assets (before expense reduction) | 5.21 | %g | 5.49 | % | 5.47 | % | 5.83 | %h | 6.47 | %h | 6.43 | %g,h | |||||||||||||||
Ratio of net investment income to average daily net assets (net of expense reduction) | 5.29 | %g | 5.62 | % | 5.59 | % | 5.95 | %h | 6.70 | %h | 7.25 | %g,h | |||||||||||||||
Portfolio turnover rate | 29 | %f | 41 | % | 56 | % | 39 | % | 44 | % | 31 | %f |
a Commencement of operations.
b Calculation based on average shares outstanding.
c The amount shown for a share outstanding throughout the period does not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund shares in relation to income earned and/or fluctuating market value of the investments of the Fund.
d Amount is less than $0.005.
e Return assumes the reinvestment of all dividends and distributions at NAV.
f Not annualized.
g Annualized.
h Non-class specific expenses are calculated at the Fund level and class specific expenses are calculated at the class level.
See accompanying notes to financial statements.
30
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
Class R | |||||||||||
Per Share Operating Performance: | For the Six Months Ended June 30, 2015 | For the Period October 1, 2014a through December 31, 2014 | |||||||||
Net asset value, beginning of period | $ | 13.58 | $ | 13.55 | |||||||
Income (loss) from investment operations: | |||||||||||
Net investment incomeb | 0.42 | 0.17 | |||||||||
Net realized and unrealized gain (loss) | (0.07 | ) | 0.05 | ||||||||
Total from investment operations | 0.35 | 0.22 | |||||||||
Less dividends and distributions to shareholders from: | |||||||||||
Net investment income | (0.37 | ) | (0.10 | ) | |||||||
Net realized gain | — | (0.09 | ) | ||||||||
Total dividends and distributions to shareholders | (0.37 | ) | (0.19 | ) | |||||||
Net increase (decrease) in net asset value | (0.02 | ) | 0.03 | ||||||||
Net asset value, end of period | $ | 13.56 | $ | 13.58 | |||||||
Total investment returnc | 2.56 | %d | 1.66 | %d | |||||||
Ratios/Supplemental Data: | |||||||||||
Net assets, end of period (in 000s) | $ | 120.1 | $ | 10.0 | |||||||
Ratio of expenses to average daily net assets (before expense reduction) | 1.33 | %e | 1.36 | %e | |||||||
Ratio of expenses to average daily net assets (net of expense reduction) | 1.30 | %e | 1.30 | %e | |||||||
Ratio of net investment income to average daily net assets (before expense reduction) | 6.10 | %e | 4.88 | %e | |||||||
Ratio of net investment income to average daily net assets (net of expense reduction) | 6.13 | %e | 4.94 | %e | |||||||
Portfolio turnover rate | 23 | %d | 41 | %d |
a Inception date.
b Calculation based on average shares outstanding.
c Return assumes the reinvestment of all dividends and distributions at NAV.
d Not annualized.
e Annualized.
See accompanying notes to financial statements.
31
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
Class Z | |||||||||||
Per Share Operating Performance: | For the Six Months Ended June 30, 2015 | For the Period October 1, 2014a through December 31, 2014 | |||||||||
Net asset value, beginning of period | $ | 13.58 | $ | 13.55 | |||||||
Income (loss) from investment operations: | |||||||||||
Net investment incomeb | 0.36 | 0.18 | |||||||||
Net realized and unrealized gain | 0.01 | c | 0.06 | ||||||||
Total from investment operations | 0.37 | 0.24 | |||||||||
Less dividends and distributions to shareholders from: | |||||||||||
Net investment income | (0.40 | ) | (0.12 | ) | |||||||
Net realized gain | — | (0.09 | ) | ||||||||
Total dividends and distributions to shareholders | (0.40 | ) | (0.21 | ) | |||||||
Net increase (decrease) in net asset value | (0.03 | ) | 0.03 | ||||||||
Net asset value, end of period | $ | 13.55 | $ | 13.58 | |||||||
Total investment returnd | 2.73 | %e | 1.78 | %e | |||||||
Ratios/Supplemental Data: | |||||||||||
Net assets, end of period (in 000s) | $ | 10.0 | $ | 10.0 | |||||||
Ratio of expenses to average daily net assets (before expense reduction) | 0.83 | %f | 0.85 | %f | |||||||
Ratio of expenses to average daily net assets (net of expense reduction) | 0.80 | %f | 0.80 | %f | |||||||
Ratio of net investment income to average daily net assets (before expense reduction) | 5.17 | %f | 5.35 | %f | |||||||
Ratio of net investment income to average daily net assets (net of expense reduction) | 5.20 | %f | 5.40 | %f | |||||||
Portfolio turnover rate | 23 | %e | 41 | %e |
a Inception date.
b Calculation based on average shares outstanding.
c The amount shown for a share outstanding throughout the period does not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund shares in relation to income earned and/or fluctuating market value of the investments of the Fund.
d Return assumes the reinvestment of all dividends and distributions at NAV.
e Not annualized.
f Annualized.
See accompanying notes to financial statements.
32
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Note 1. Organization and Significant Accounting Policies
Cohen & Steers Preferred Securities and Income Fund, Inc. (the Fund) was incorporated under the laws of the State of Maryland on February 22, 2010 and is registered under the Investment Company Act of 1940 (the 1940 Act) as a diversified, open-end management investment company. The Fund's investment objective is total return. On July 22, 2014, the Board of Directors of the Fund approved the Fund's offering of Class R and Class Z shares. Class R and Class Z shares became available for investment on October 1, 2014, on which date the Fund sold 738 shares each of Class R and Class Z for $20,000 to Cohen & Steers Capital Management, Inc. (the investment advisor). The authorized shares of the Fund are divided into five classes designated Class A, C, I, R and Z shares. 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).
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 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 contracts are valued daily at the prevailing forward exchange rate.
Securities not listed on the NYSE but listed on other domestic or foreign securities exchanges 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 over-the-counter market, including listed securities whose primary market is believed by the investment advisor to be over-the-counter, are valued at the last sale price on the valuation date as reported by sources deemed appropriate by the Board of Directors to reflect their fair market value. 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. However, certain fixed-income securities may be 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 market value of such
33
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
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 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 their closing net asset value.
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.
The Fund's use of fair value pricing may cause the net asset value of Fund shares to differ from the net asset value 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.
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.)
34
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
• 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 securities are not necessarily an indication of the risk associated with investing in those securities.
For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing the transfer at the end of the period in which the underlying event causing the movement occurred. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. There were no transfers between Level 1 and Level 2 as of June 30, 2015.
The following is a summary of the inputs used as of June 30, 2015 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) | ||||||||||||||||
Preferred Securities— $25 Par Value: | |||||||||||||||||||
Banks | $ | 362,553,587 | $ | 340,596,317 | $ | 21,957,270 | $ | — | |||||||||||
Other Industries | 958,350,091 | 958,350,091 | — | — | |||||||||||||||
Preferred Securities— Capital Securities: | |||||||||||||||||||
Banks | 630,677,578 | 14,017,740 | 611,296,826 | 5,363,012 | |||||||||||||||
Other Industries | 1,689,366,731 | — | 1,689,366,731 | — | |||||||||||||||
Corporate Bonds | 34,845,342 | — | 34,845,342 | — | |||||||||||||||
Short-Term Investments | 52,400,000 | — | 52,400,000 | — | |||||||||||||||
Total Investmentsa | $ | 3,728,193,329 | $ | 1,312,964,148 | $ | 2,409,866,169 | $ | 5,363,012 | b | ||||||||||
Forward foreign currency exchange contracts | $ | 242,518 | $ | — | $ | 242,518 | $ | — | |||||||||||
Total Appreciation in Other Financial Instrumentsa | $ | 242,518 | $ | — | $ | 242,518 | $ | — |
35
COHEN & STEERS PREFERRED SECURITIES AND 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) | ||||||||||||||||
Forward foreign currency exchange contracts | $ | (3,756,825 | ) | $ | — | $ | (3,756,825 | ) | $ | — | |||||||||
Total Depreciation in Other Financial Instrumentsa | $ | (3,756,825 | ) | $ | — | $ | (3,756,825 | ) | $ | — |
a Portfolio holdings are disclosed individually on the Schedule of Investments.
b Level 3 investments are valued by a third-party pricing service. The inputs for these securities are not readily available or cannot be reasonably estimated. A change in the significant unobservable inputs could result in a significantly lower or higher value in such Level 3 investments.
Following is a reconciliation of investments for which significant unobservable inputs (Level 3) were used in determining fair value:
Total Investments in Securities | Preferred Securities—$25 Par Value—Banks | Preferred Securities—Capital Securities—Banks | |||||||||||||
Balance as of December 31, 2014 | $ | 32,674,875 | $ | 5,521,500 | $ | 27,153,375 | |||||||||
Change in unrealized appreciation (depreciation) | 278,575 | (158,488 | ) | 437,063 | |||||||||||
Transfers out of Level 3a | (27,590,438 | ) | — | (27,590,438 | ) | ||||||||||
Transfers within Level 3b | — | (5,363,012 | ) | 5,363,012 | |||||||||||
Balance as of June 30, 2015 | $ | 5,363,012 | $ | — | $ | 5,363,012 |
The change in unrealized appreciation (depreciation) attributable to securities owned on June 30, 2015 which were valued using significant unobservable inputs (Level 3) amounted to $(158,488).
a As of December 31, 2014, the Fund used significant unobservable inputs in determining the value of certain investments. As of June 30, 2015, the Fund used significant observable inputs in determining the value of the same investments.
b As of June 30, 2015, transfers within Level 3 occured due to changes in sector classifications.
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 is recorded on the accrual basis. Discounts are accreted and premiums are amortized over the life of the respective securities. 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
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COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
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. 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.
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.
Net realized foreign exchange gains or losses arise from sales of foreign currencies, including gains and losses on forward foreign currency exchange contracts, 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 exchange 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 gains/losses included in realized and unrealized gains/losses are included in or are a reduction of ordinary income for federal income tax purposes.
Foreign Securities: The Fund directly purchases securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the ability to repatriate funds, less complete financial information about companies and possible future adverse political and economic developments. 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.
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 contracts are marked to market daily and the change in value is recorded by the Fund as unrealized appreciation and/or depreciation on foreign currency translations. 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 foreign currency transactions. For federal income tax
37
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
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.
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 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 net asset value 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 June 30, 2015, the investment advisor considers it likely that a portion of the dividends will be reclassified to distributions from net realized gain upon the final determination of the Fund's taxable income after December 31, 2015, the Fund's fiscal year end.
Income Taxes: It is the policy of the Fund to continue to qualify as a regulated investment company, 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 regulated investment companies, 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 June 30, 2015, 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: The investment advisor 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
38
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
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 the annual rate of 0.70% of the average daily net assets of the Fund.
For the six months ended June 30, 2015 and through June 30, 2016, 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 and extraordinary expenses) do not exceed 1.15% for Class A shares, 1.80% for Class C shares, 0.80% for Class I shares, 1.30% for Class R shares and 0.80% for Class Z shares. This contractual agreement may be amended or terminated at any time by agreement of the Fund 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. For the six months ended June 30, 2015, fees waived and/or expenses reimbursed totaled $1,114,377.
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 0.05% of the average daily net assets of the Fund. For the six months ended June 30, 2015, the Fund incurred $899,340 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. 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 3.75% 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 June 30, 2015, the Fund has been advised that the distributor received $142,836 in sales commissions from the sale of Class A shares and $54,268 and $24,797 of CDSC relating to redemptions of Class A and Class C shares, respectively. 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.
Shareholder Servicing Fees: For shareholder services, the Fund pays the distributor or its affiliates a fee, accrued daily and paid monthly, 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.
39
COHEN & STEERS PREFERRED SECURITIES AND 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 $22,034 for the six months ended June 30, 2015.
Other: The Fund may have shareholders investing indirectly through an account, platform or program sponsored by a financial institution. Investment and asset allocation decisions by such financial institution 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 at disadvantageous times or prices, and may negatively affect the Fund's net asset value and performance.
Note 3. Purchases and Sales of Securities
Purchases and sales of securities, excluding short-term investments, for the six months ended June 30, 2015, totaled $1,413,600,727 and $799,811,554, respectively.
Note 4. Derivative Investments
The following tables present the value of derivatives held at June 30, 2015 and the effect of derivatives held during the six months ended June 30, 2015, along with the respective location in the financial statements.
Statement of Assets and Liabilities | |||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||
Derivatives | Location | Fair Value | Location | Fair Value | |||||||||||||||
Forward foreign currency exchange contractsa | Unrealized appreciation | $ | 242,518 | Unrealized depreciation | $ | 3,756,825 |
a Forward foreign currency exchange contracts executed with Brown Brothers Harriman are not subject to a master netting arrangement or another similar agreement.
Statement of Operations | |||||||||||||||
Derivatives | Location | Realized Gain | Change in Unrealized Depreciation | ||||||||||||
Forward foreign currency exchange contracts | Net Realized and Unrealized Gain (Loss) | $ | 5,509,855 | $ | (4,429,602 | ) |
40
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
The following summarizes the volume of the Fund's forward foreign currency exchange contracts activity during the six months ended June 30, 2015:
Forward Foreign Currency Exchange Contracts | |||||||
Average Notional Amount | $ | 151,035,455 | |||||
Ending Notional Amount | $ | 164,649,667 |
Note 5. Income Tax Information
As of June 30, 2015 the federal tax cost and net unrealized appreciation and depreciation in value of securities were as follows:
Cost for federal income tax purposes | $ | 3,603,305,925 | |||||
Gross unrealized appreciation | $ | 143,616,355 | |||||
Gross unrealized depreciation | (18,728,951 | ) | |||||
Net unrealized appreciation | $ | 124,887,404 |
Note 6. Capital Stock
The Fund is authorized to issue 1 billion shares of capital stock, at a par value of $0.001 per share. 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. Transactions in Fund shares were as follows:
For the Six Months Ended June 30, 2015 | For the Year Ended December 31, 2014 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class A: | |||||||||||||||||||
Sold | 12,348,922 | $ | 170,150,236 | 24,536,116 | $ | 331,309,716 | |||||||||||||
Issued as reinvestment of dividends and distributions | 903,320 | 12,412,455 | 1,623,321 | 21,954,144 | |||||||||||||||
Redeemed | (8,648,048 | ) | (118,820,619 | ) | (17,324,045 | ) | (235,008,522 | ) | |||||||||||
Net increase | 4,604,194 | $ | 63,742,072 | 8,835,392 | $ | 118,255,338 |
41
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
For the Six Months Ended June 30, 2015 | For the Year Ended December 31, 2014 | ||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Class C: | |||||||||||||||||||
Sold | 6,963,551 | $ | 95,423,376 | 9,931,187 | $ | 133,870,398 | |||||||||||||
Issued as reinvestment of dividends and distributions | 551,063 | 7,535,280 | 981,479 | 13,204,866 | |||||||||||||||
Redeemed | (2,759,725 | ) | (37,780,067 | ) | (6,626,530 | ) | (88,836,132 | ) | |||||||||||
Net increase | 4,754,889 | $ | 65,178,589 | 4,286,136 | $ | 58,239,132 | |||||||||||||
Class I: | |||||||||||||||||||
Sold | 68,266,813 | $ | 942,956,899 | 100,572,541 | $ | 1,365,576,432 | |||||||||||||
Issued as reinvestment of dividends and distributions | 2,430,275 | 33,460,977 | 3,168,006 | 42,954,832 | |||||||||||||||
Redeemed | (30,940,158 | ) | (426,456,539 | ) | (49,913,921 | ) | (676,422,726 | ) | |||||||||||
Net increase | 39,756,930 | $ | 549,961,337 | 53,826,626 | $ | 732,108,538 | |||||||||||||
Class Ra: | |||||||||||||||||||
Sold | 8,120 | $ | 111,000 | 738 | $ | 10,000 | |||||||||||||
Net increase | 8,120 | $ | 111,000 | 738 | $ | 10,000 | |||||||||||||
Class Za: | |||||||||||||||||||
Sold | — | $ | — | 738 | $ | 10,000 | |||||||||||||
Net increase | — | $ | — | 738 | $ | 10,000 |
a Inception date of October 1, 2014.
Note 7. Borrowings
The Fund, in conjunction with other Cohen & Steers open-end funds, was a party to a $200,000,000 syndicated credit agreement (the credit agreement) with State Street Bank and Trust Company, as administrative agent and operations agent, and the lenders identified in the credit agreement (as applicable), which expired January 23, 2015. The Fund paid a commitment fee of 0.10% per annum on its proportionate share of the unused portion of the credit agreement. On January 23, 2015, the credit agreement was renewed and expires January 22, 2016. Under the renewed credit agreement, the total commitment amount has been reduced to $50,000,000 and the Fund pays a commitment fee of 0.15% per annum on its proportionate share of the unused portion of the credit agreement.
During the six months ended June 30, 2015, the Fund did not borrow under the credit agreement.
42
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
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. Subsequent Events
On June 16, 2015, the Board of Directors of the Fund approved an amendment to the Fund's fee waiver/expense reimbursement agreement, effective August 1, 2015 through June 30, 2017, whereby the investment advisor 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 and extraordinary expenses) do not exceed 1.20% for Class A shares, 1.85% for Class C shares, 0.85% for Class I shares, 1.35% for Class R shares and 0.85% for Class Z shares. This contractual agreement may be amended or terminated at any time by agreement of the Fund 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.
Management has evaluated events and transactions occurring after June 30, 2015 through the date that the financial statements were issued, and had determined that no additional disclosure in the financial statements is required.
43
COHEN & STEERS PREFERRED SECURITIES AND 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 Securities and Exchange Commission's (the SEC) 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.
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q are available (i) without charge, upon request, by calling 800-330-7348 or (ii) on the SEC's website at http://www.sec.gov. In addition, the Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330.
Please note that distributions paid by the Fund to shareholders 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. 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 distributions 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.
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
The Board of Directors of the Fund, including a majority of the directors who are not parties to the Fund's investment advisory agreement (the Advisory Agreement), or interested persons of any such party (Independent Directors), has the responsibility under the 1940 Act to approve the Fund's Advisory Agreement for its initial two year term and its continuation annually thereafter at a meeting of the Board of Directors called for the purpose of voting on the approval or continuation. At a telephonic meeting of the Board of Directors held on June 9, 2015 and at a meeting held in person on June 16, 2015, the Advisory Agreement was discussed and was unanimously continued for a term ending June 30, 2016 by the Fund's Board of Directors, including the Independent Directors. The Independent Directors were represented by independent counsel who assisted them in their deliberations during the meeting and executive session.
In considering whether to continue the Advisory Agreement, the Board of Directors reviewed materials provided by the Fund's investment advisor (the Investment Advisor) and Fund counsel which included, among other things, fee, expense and performance information compared to peer funds (Peer Funds) and performance comparisons to a larger category universe prepared by an independent data provider; summary information prepared by the Investment Advisor; and a memorandum outlining the legal duties of the Board of Directors. The Board of Directors also spoke directly with representatives of the independent data provider and met with investment advisory personnel. In addition, the Board of Directors considered information provided from time to time by the Investment Advisor throughout the year at meetings of the Board of Directors, including presentations by portfolio managers relating to the
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COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
investment performance of the Fund and the investment strategies used in pursuing the Fund's objective. In particular, the Board of Directors considered the following:
(i) The nature, extent and quality of services to be provided by the Investment Advisor: The Board of Directors reviewed the services that the Investment Advisor provides to the Fund, including, but not limited to, making the day-to-day investment decisions for the Fund, and generally managing the Fund's investments in accordance with the stated policies of the Fund. The Board of Directors also discussed with officers and portfolio managers of the Fund the types of transactions that were being done on behalf of the Fund. Additionally, the Board of Directors took into account the services provided by the Investment Advisor to its other funds, including those that have investment objectives and strategies similar to the Fund. The Board of Directors next considered the education, background and experience of the Investment Advisor's personnel, noting particularly that the favorable history and reputation of the portfolio managers for the Fund has had, and would likely continue to have, a favorable impact on the Fund. The Board of Directors further noted the Investment Advisor's ability to attract qualified and experienced personnel. The Board of Directors also considered the administrative services provided by the Investment Advisor, including compliance and accounting services. After consideration of the above factors, among others, the Board of Directors concluded that the nature, extent and quality of services provided by the Investment Advisor are adequate and appropriate.
(ii) Investment performance of the Fund and the Investment Advisor: The Board of Directors considered the investment performance of the Fund compared to Peer Funds and compared to a relevant benchmark and blended benchmark. The Board of Directors noted that the Fund outperformed the Peer Funds' median and its blended benchmark for the one- and three-year periods ended March 31, 2015, ranking first of five funds in the peer group for each period. The Board of Directors also noted that the Fund outperformed its benchmark for the three-year period ended March 31, 2015 but underperformed the benchmark for the one-year period. The Board of Directors engaged in discussions with the Investment Advisor regarding the contributors to and detractors from the Fund's performance during the periods. The Board of Directors also considered supplemental information provided by the Investment Advisor, including a narrative summary of various factors affecting performance and the Investment Advisor's performance in managing other funds and products investing in preferred securities. The Board of Directors then determined that Fund performance, in light of all considerations noted above, was satisfactory.
(iii) Cost of the services to be provided and profits to be realized by the Investment Advisor from the relationship with the Fund: Next, the Board of Directors considered the advisory fees and administrative fees payable by the Fund as well as total expense ratios. As part of its analysis, the Board of Directors gave consideration to the fee and expense analyses provided by the independent data provider. The Board of Directors noted that the Fund's actual management fee was lower than the median of the Peer Funds, ranking two out of five. The Fund's contractual management fee was higher than the median of the Peer Funds, ranking four out of five. The Board of Directors also noted that the Fund's net expense ratio was lower than the median of the Peer Funds, ranking two out of five. The Board of Directors considered that the Investment Advisor is waiving a portion of its fees and/or reimbursing expenses to limit the overall operating expenses of the Fund. The Board of Directors also considered the Investment Advisor's recommendation to adjust its existing fee waiver and expense reimbursement agreement with the Fund, effective August 1, 2015 through June 30, 2017. The Board of
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COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
Directors considered that even with the fee waiver adjustment, the Fund's actual management fee and net expense ratios are expected to remain competitive with the Peer Funds' medians. Upon discussion with the Investment Advisor, the Board of Directors approved an amendment to the fee waiver and reimbursement agreement. The Board of Directors then considered the administrative services provided by the Investment Advisor, including compliance and accounting services, and further noted that the Fund pays an administration fee to the Investment Advisor. The Board of Directors concluded that the Fund's expense structure was generally satisfactory.
The Board of Directors also reviewed information regarding the profitability to the Investment Advisor of its relationship with the Fund. The Board of Directors considered the level of the Investment Advisor's profits and whether the profits were reasonable for the Investment Advisor. The Board of Directors noted that the Investment Advisor is currently waiving a portion of its fee and/or reimbursing expenses of the Fund. The Board of Directors took into consideration other benefits to be derived by the Investment Advisor in connection with the Advisory Agreement, noting particularly the research and related services, within the meaning of Section 28(e) of the Securities Exchange Act of 1934, as amended, that the Investment Advisor receives by allocating the Fund's brokerage transactions. The Board of Directors also considered the fees received by the Investment Advisor under the Administration Agreement, and noted the significant services received, such as compliance, accounting and operational services and furnishing office space and facilities for the Fund, and providing persons satisfactory to the Board of Directors to serve as officers of the Fund, and that these services were beneficial to the Fund. The Board of Directors concluded that the profits realized by the Investment Advisor from its relationships with the Fund were reasonable and consistent with the Investment Advisor's fiduciary duties.
(iv) The extent to which economies of scale would be realized as the Fund grows and whether fee levels would reflect such economies of scale: The Board of Directors considered the Fund's asset size and determined that there were not at this time significant economies of scale that were not being shared with shareholders.
(v) Comparison of services to be rendered and fees to be paid to those under other investment advisory contracts, such as contracts of the same and other investment advisers or other clients: As discussed above in (iii), the Board of Directors compared the fees paid under the Advisory Agreement to those under other investment advisory contracts of other investment advisers managing Peer Funds. The Board of Directors also compared the services rendered, fees paid and profitability under the Advisory Agreement to those under the Investment Advisor's other fund advisory agreements and advisory contracts with institutional and other clients with similar investment mandates. The Board of Directors also considered the entrepreneurial risk and financial exposure assumed by the Investment Advisor in developing and managing the Fund that the Investment Advisor does not have with institutional and other clients and other differences in the management of registered investment companies and institutional accounts. The Board of Directors determined that on a comparative basis the fees under the Advisory Agreement were reasonable in relation to the services provided.
No single factor was cited as determinative to the decision of the Board of Directors. Rather, after weighing all of the considerations and conclusions discussed above, the Board of Directors, including the Independent Directors, unanimously approved the continuation of the Advisory Agreement.
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COHEN & STEERS PREFERRED SECURITIES AND 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
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COHEN & STEERS PREFERRED SECURITIES AND 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 UK 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. |
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COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
Cohen & Steers Investment Solutions
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 INSTITUTIONAL REALTY SHARES
• Designed for institutional investors seeking total return, investing primarily in U.S. real estate securities
• Symbol: CSRIX
COHEN & STEERS REAL ESTATE SECURITIES FUND
• Designed for investors seeking total return, investing primarily in U.S. real estate securities
• Symbols: CSEIX, CSCIX, CSDIX, CIRRX, CSZIX
COHEN & STEERS INTERNATIONAL REALTY FUND
• Designed for investors seeking total return, investing primarily in international real estate securities
• Symbols: IRFAX, IRFCX, IRFIX
COHEN & STEERS REALTY SHARES
• Designed for investors seeking total return, investing primarily in U.S. real estate securities
• Symbol: CSRSX
COHEN & STEERS
INSTITUTIONAL GLOBAL REALTY SHARES
• Designed for institutional investors seeking total return, investing primarily in global real estate securities
• Symbol: GRSIX
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 DIVIDEND VALUE FUND
• Designed for investors seeking long-term growth of income and capital appreciation, investing primarily in dividend paying common stocks and preferred stocks
• Symbols: DVFAX, DVFCX, DVFIX, DVFRX, DVFZX
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
• Symbols: CPXAX, CPXCX, CPXIX, CPRRX, CPXZX
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
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
ACTIVE COMMODITIES STRATEGY FUND
• Designed for investors seeking total return, investing primarily in a diversified portfolio of exchange-traded commodity future contracts and other commodity-related derivative instruments
• Symbols: CDFAX, CDFCX, CDFIX, CDFRX, CDFZX
Distributed by Cohen & Steers Securities, LLC.
COHEN & STEERS GLOBAL REALTY MAJORS ETF
• Designed for investors who seek a relatively low-cost passive approach for investing in a portfolio of real estate equity securities of companies in a specified index
• Symbol: GRI
Distributed by ALPS Distributors, Inc.
ISHARES COHEN & STEERS
REALTY MAJORS INDEX FUND
• Designed for investors who seek a relatively low-cost passive approach for investing in a portfolio of real estate equity securities of companies in a specified index
• Symbol: ICF
Distributed by SEI Investments Distribution Co.
Please consider the investment objectives, risks, charges and expenses of the 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.
49
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
OFFICERS AND DIRECTORS
Robert H. Steers
Director and Chairman
Joseph M. Harvey
Director and Vice President
Michael G. Clark
Director
Bonnie Cohen
Director
George Grossman
Director
Dean Junkans
Director
Richard E. Kroon
Director
Richard J. Norman
Director
Frank K. Ross
Director
C. Edward Ward, Jr.
Director
Adam M. Derechin
President and Chief Executive Officer
William F. Scapell
Vice President
Francis C. Poli
Secretary
James Giallanza
Treasurer and Chief Financial Officer
Lisa D. Phelan
Chief Compliance Officer
Heather Kaden
Deputy Chief Compliance Officer
Tina M. Payne
Assistant Secretary
Neil Bloom
Assistant Treasurer
KEY INFORMATION
Investment Advisor
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
Boston Financial Data Services, Inc.
P.O. Box 8123
Boston, MA 02266
(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—CPXAX
Class C—CPXCX
Class I—CPXIX
Class R—CPRRX
Class Z—CPXZX
Website: cohenandsteers.com
This report is authorized for delivery only to shareholders of Cohen & Steers Preferred Securities and 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.
50
COHEN & STEERS
PREFERRED SECURITIES AND INCOME FUND
280 PARK AVENUE
NEW YORK, NY 10017
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CPXAXSAR
Semiannual Report June 30, 2015
Cohen & Steers Preferred Securities and Income Fund
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 Management 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, based upon their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures provide reasonable assurance that material information required to be disclosed by the registrant in the report it files or submits on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms
and that such material information is accumulated and communicated to the registrant’s management, including its principal executive officer and principal financial officer, as appropriate, in order to allow timely decisions regarding required disclosure.
(b) There were no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of 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. Exhibits.
(a)(1) Not applicable.
(a)(2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certifications of chief executive officer and chief financial officer as required by Rule 30a- 2(b) under the Investment Company Act of 1940.
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 PREFERRED SECURITIES AND INCOME FUND, INC.
By: | /s/ Adam M. Derechin |
|
| Name: Adam M. Derechin | |
| Title: President and Chief Executive Officer |
Date: September 3, 2015
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/ Adam M. Derechin |
| |
| Name: | Adam M. Derechin | |
| Title: | President and Chief Executive Officer | |
|
| (Principal Executive Officer) | |
|
|
| |
By: | /s/ James Giallanza |
| |
| Name: | James Giallanza | |
| Title: | Treasurer and Chief Financial Officer | |
|
| (Principal Financial Officer) | |
|
|
| |
Date: September 3, 2015 |
| ||