Cohen & Steers Preferred Securities & Income SMA Shares N-CSRS Certified semi-annual shareholder report (management investment company)

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:    811-23393                                 

Cohen & Steers Preferred Securities and Income SMA Shares, Inc.

(Exact name of registrant as specified in charter)

280 Park Avenue, New York, NY 10017

(Address of principal executive offices) (Zip code)

Dana A. DeVivo

Cohen & Steers Capital Management, Inc.

280 Park Avenue

New York, New York 10017

(Name and address of agent for service)

Registrant’s telephone number, including area code:    (212) 832-3232                                         

Date of fiscal year end:    October 31                                         

Date of reporting period:    April 30, 2021                                        

Item 1. Reports to Stockholders.

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

To Our Shareholders:

We would like to share with you our report for the six months ended April 30, 2021. The total returns for Cohen & Steers Preferred Securities and Income SMA Shares, Inc. (the Fund) and its comparative benchmarks were:

	Six Months Ended April 30, 2021
Cohen & Steers Preferred Securities and Income SMA Shares		7.81	%
Blended Benchmark—75% ICE BofA US IG Institutional Capital Securities Index/ 25% Bloomberg Barclays Developed Market USD Contingent Capital Indexa		5.34	%
S&P 500 Indexa		28.85	%

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. The Fund’s returns assume the reinvestment of all dividends and distributions at net asset value (NAV). Shareholders should be aware that the Fund is managed within the context of separately managed account programs and not with the objective of matching or exceeding the Fund’s stated indexes, which are used for Fund reporting purposes. As such, comparisons of the Fund’s performance to that of the indicated indexes are not likely to be meaningful. An investor cannot invest directly in an index. Performance figures for periods shorter than one year are not annualized. Performance figures do not reflect the effect of fees and expenses associated with a separately managed account (“SMA”) program or fees paid to the investment advisor for SMA advisory services. Such fees are paid directly or indirectly by the SMA program sponsor to the investment advisor. The investment advisor does not charge an advisory fee to the Fund. The investment advisor has contractually agreed to reimburse the Fund so that the total annual Fund operating expenses (excluding acquired fund fees and expenses, interest, taxes, extraordinary expenses, and other expenses approved by the Board of Directors) do not exceed 0.00%. This contractual agreement is currently expected to remain in place for the life of the Fund, can only be amended or terminated by agreement of the Fund’s Board of Directors and the investment advisor and will terminate automatically in the event of termination of the investment advisory agreement between the Fund and the investment advisor.

^a The ICE BofA US IG Institutional Capital Securities Index tracks the performance of US dollar denominated investment grade hybrid capital corporate and preferred securities publicly issued in the US domestic market. The Bloomberg Barclays Developed Market USD Contingent Capital Index includes hybrid capital securities in developed markets with explicit equity conversion or write down loss absorption mechanisms that are based on an issuer’s regulatory capital ratio or other explicit solvency-based triggers. 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.

1

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

Market Review

Preferred securities advanced in the six months ended April 30, 2021, which was a favorable period for credit-sensitive assets amid increasing signs of economic recovery. Credit markets such as preferreds and high-yield debt benefited from the widespread implementation of COVID-19 vaccinations amid a continuation of stimulative monetary and fiscal policies globally. Bond yields rose in this environment from near historical lows, with the yield on the 10-year U.S. Treasury increasing from 0.9% to 1.7% by period end. While this trend weighed on the prices of longer-duration high-quality bonds, preferred securities had a positive return as the improving credit outlook more than countered interest-rate concerns in terms of investor sentiment.

Fund Performance

The portfolio had a positive total return in the period and outperformed its blended benchmark. The portfolio is part of a component SMA and does not necessarily reflect the performance of the overall SMA program.

Banks, the main issuers of preferred securities, saw solid improvements in earnings, credit quality and capital markets activity during the period. And after substantially building their loan-loss reserves in the second half of 2020, banks released large amounts of those excess reserves in early 2021 due to optimism about economic reopenings and given factors such as strong consumer balance sheets.

In this environment, the banking sector performed well in absolute terms and compared with the broader preferreds market. Securities from more economically sensitive U.S. and European banks saw sharp yield spread compression. On balance, security selection in banking aided the portfolio’s relative performance in the period. Top contributors included several out-of-benchmark positions in contingent capital securities (CoCos), which are a type of preferred that can write down in value or be converted to equity in the event an issuer’s capital level deteriorates materially. Detractors from performance in the sector included the timing of our allocation to a security from Wells Fargo.

The insurance sector had a positive but lesser gain. Security selection in insurance helped the portfolio’s relative performance, in part due to an out-of-benchmark allocation to an issue from Netherlands-based insurer Achmea that had a sizable gain. Elsewhere of note, pipelines benefited from a rebound in commodity prices and volumes, and certain real estate companies outperformed amid economic reopening optimism. Security selection in the pipelines and real estate sectors contributed positively to performance. Factors that detracted from relative performance at the sector level included an overweight in utilities, which trailed the wider preferreds market. However, the effect was more than offset by favorable security selection in the sector.

Impact of Derivatives on Fund Performance

The Fund used derivatives in the form of forward foreign currency exchange contracts for managing currency risk on certain Fund positions denominated in foreign currencies. The currency exchange contracts detracted from the Fund’s total return for the six months ended April 30, 2021.

2

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

Sincerely,

WILLIAM F. SCAPELL Portfolio Manager	ELAINE ZAHARIS-NIKAS Portfolio Manager

JERRY DOROST      

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 specializes in liquid real assets, including real estate securities, listed infrastructure and natural resource equities, as well as preferred securities and other income solutions.

3

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

Performance Review (Unaudited)

Average Annual Total Returns—For Periods Ended April 30, 2021

	1 Year			5 Years		10 Years		Since Inceptiona
Cohen & Steers Preferred Securities and Income SMA Shares, Inc.		18.44	%		—		—		10.84	%

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. Total return assumes the reinvestment of all dividends and distributions at NAV. The performance graph and table do 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 expense ratio as disclosed in the prospectus dated March 1, 2021, was 0.01%, including 0.01% of acquired fund fees and expenses. The Fund may invest a portion of its assets in other investment companies (Acquired Funds) and the Fund’s shareholders indirectly bear a pro rata portion of the expenses of the Acquired Funds in which the Fund invests. However, these acquired fund fees and expenses are not directly borne by the Fund and are therefore not included in the amount the investment advisor has contractually agreed to reimburse. The investment advisor has contractually agreed to reimburse the Fund so that the total annual Fund operating expenses (excluding acquired fund fees and expenses, interest, taxes, extraordinary expenses, and other expenses approved by the Board of Directors) do not exceed 0.00%. This contractual agreement is currently expected to remain in place for the life of the Fund, can only be amended or terminated by agreement of the Fund’s Board of Directors and the investment advisor and will terminate automatically in the event of termination of the investment advisory agreement between the Fund and the investment advisor.

^a  Commencement of investment operations is March 1, 2019.

4

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

Expense Example (Unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs including investment advisory fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2020—April 30, 2021.

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. 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.

5

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

Expense Example (Unaudited)—(Continued)

	Beginning Account Value November 1, 2020		Ending Account Value April 30, 2021		Expenses Paid During Perioda November 1,  2020— April 30, 2021
Actual (7.81% return)	$	1,000.00	$	1,078.10	$	0.00
Hypothetical (5% annual return before expenses)	$	1,000.00	$	1,024.79	$	0.00

^a  Expenses are equal to the Fund’s annualized expenses ratio of 0.00% multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period) The investment advisor does not charge an advisory fee to the Fund. The investment advisor has contractually agreed to reimburse the Fund so that the total annual Fund operating expenses (excluding acquired fund fees and expenses, interest, taxes, extraordinary expenses, and other expenses approved by the Board of Directors) do not exceed 0.00%. This contractual agreement is currently expected to remain in place for the life of the Fund, can only be amended or terminated by agreement of the Fund’s Board of Directors and the investment advisor and will terminate automatically in the event of termination of the investment advisory agreement between the Fund and the investment advisor.

6

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

April 30, 2021

Top Ten Holdings^a

(Unaudited)

Security	Value		% of Net Assets
Wells Fargo & Co., 3.90%	$	8,267,065		2.6
Charles Schwab Corp./The, 4.00%, Series I		7,296,945		2.3
Citigroup, Inc., 3.875%		6,333,662		2.0
Emera, Inc., 6.75%, due 6/15/76, Series 16-A (Canada)		5,679,631		1.8
Bank of America Corp., 6.25%, Series X		5,086,134		1.6
Bank of America Corp., 6.10%, Series AA		4,928,704		1.6
Enbridge, Inc., 5.75%, due 7/15/80, Series 20-A (Canada)		4,924,156		1.6
BP Capital Markets PLC, 4.875% (United Kingdom)		4,570,848		1.4
Edison International, 5.375%, Series A		3,971,978		1.3
JPMorgan Chase & Co., 6.125%, Series U		3,966,130		1.3

^a  Top ten holdings (excluding short-term investments and derivative instruments) are determined on the basis of the value of individual securities held. The Fund may also hold positions in other types of securities issued by the companies listed above. See the Schedule of Investments for additional details on such other positions.

Sector Breakdown^b

(Based on Net Assets)

(Unaudited)

^b  Excludes derivative instruments.

7

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

SCHEDULE OF INVESTMENTS

April 30, 2021 (Unaudited)

		Shares		Value
PREFERRED SECURITIES—$25 PAR VALUE	7.1%
BANKS	1.6%
First Horizon Corp., 4.70%, Series Fa			100,800	$	2,521,512
Regions Financial Corp., 5.70% to 5/15/29, Series Ca,b			26,482		729,049
Washington Federal, Inc., 4.875%, Series Aa			41,459		1,067,155
Wells Fargo & Co., 4.70%, Series AAa			9,183		234,167	��
Wells Fargo & Co., 4.75%, Series Za			22,573		580,803
					5,132,686
ELECTRIC	0.5%
WESCO International, Inc., 10.625% to 6/22/25, Series Aa,b			49,404		1,568,083
FINANCIAL—DIVERSIFIED FINANCIAL SERVICES	0.6%
Synchrony Financial, 5.625%, Series Aa			71,414		1,886,758
PIPELINES	0.9%
Energy Transfer LP, 7.625% to 8/15/23, Series Da,b			44,262		1,073,796
Energy Transfer LP, 7.60% to 5/15/24, Series Ea,b			72,707		1,765,326
					2,839,122
PIPELINES—FOREIGN	0.8%
Enbridge, Inc., 3.94% to 3/1/25, Series 11 (Canada)a,b			45,018		665,482
Enbridge, Inc., 3.415% to 6/1/22, Series B (Canada)a,b			25,000		337,632
TC Energy Corp., 3.903% to 4/30/24, Series 7 (Canada)a,b			70,000		1,107,676
TC Energy Corp., 3.355% to 11/30/25, Series 11 (Canada)a,b			18,100		324,700
					2,435,490
REAL ESTATE—OFFICE	0.6%
Brookfield Property Partners LP, 5.75%, Series Aa			66,680		1,580,316
Brookfield Property Partners LP, 6.50%, Series A-1a			15,210		386,790
					1,967,106
TELECOMMUNICATION SERVICES	1.2%
United States Cellular Corp., 5.50%, due 3/1/70			84,400		2,158,952
United States Cellular Corp., 6.25%, due 9/1/69			61,200		1,621,800
					3,780,752
UTILITIES	0.9%
SCE Trust V, 5.45% to 3/15/26, Series Ka,b			56,677		1,445,830

See accompanying notes to financial statements.

8

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

SCHEDULE OF INVESTMENTS—(Continued)

April 30, 2021 (Unaudited)

		Shares			Value
South Jersey Industries, Inc., 5.625%, due 9/16/79			48,866		$	1,276,869
						2,722,699
TOTAL PREFERRED SECURITIES—$25 PAR VALUE (Identified cost—$21,000,621)						22,332,696
		Principal Amount
PREFERRED SECURITIES—CAPITAL SECURITIES	91.3%
BANKS	26.7%
Ally Financial, Inc., 4.70% to 5/15/26, Series Ba,b		$	3,160,000			3,211,192
Bank of America Corp., 5.875% to 3/15/28, Series FFa,b			2,967,000			3,349,595
Bank of America Corp., 6.10% to 3/17/25, Series AAa,b			4,393,000			4,928,704
Bank of America Corp., 6.25% to 9/5/24, Series Xa,b			4,559,000			5,086,134
Bank of America Corp., 6.50% to 10/23/24, Series Za,b			988,000			1,141,338
Bank of New York Mellon Corp./The, 3.70% to 3/20/26, Series Ha,b			1,040,000			1,088,141
Citigroup, Inc., 3.875% to 2/18/26a,b			6,310,000			6,333,662
Citigroup, Inc., 5.95% to 1/30/23a,b			810,000			857,081
Citigroup, Inc., 5.95% to 5/15/25, Series Pa,b			3,275,000			3,575,645
Citigroup, Inc., 6.25% to 8/15/26, Series Ta,b			3,146,000			3,673,899
Citizens Financial Group, Inc., 5.65% to 10/6/25, Series Fa,b			1,221,000			1,353,784
CoBank ACB, 6.25% to 10/1/22, Series Fa,b			12,000	†		1,293,000
Comerica, Inc., 5.625% to 7/1/25a,b			1,527,000			1,700,696
Corestates Capital III, 0.768% (3 Month US LIBOR + 0.57%), due 2/15/27, 144A (TruPS) (FRN)c,d			1,055,000			1,023,022
Dresdner Funding Trust I, 8.151%, due 6/30/31, 144Ad			1,200,000			1,711,950
Farm Credit Bank of Texas, 5.70% to 9/15/25, Series 4, 144Aa,b,d			2,575,000			2,803,531
First Horizon Bank, 3.75% (3 Month US LIBOR + 0.85%, Floor 3.75%), 144A (FRN)a,c,d			3,500	†		2,918,480
Goldman Sachs Group, Inc./The, 3.80% to 5/10/26, Series Ta,b			1,710,000			1,715,130
Goldman Sachs Group, Inc./The, 5.30% to 11/10/26, Series Oa,b			350,000			392,875
Goldman Sachs Group, Inc./The, 5.50% to 8/10/24, Series Qa,b			515,000			563,925
Huntington Bancshares, Inc., 4.45% to 10/15/27, Series Ga,b			929,000			995,656

See accompanying notes to financial statements.

9

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

SCHEDULE OF INVESTMENTS—(Continued)

April 30, 2021 (Unaudited)

		Principal Amount		Value
Huntington Bancshares, Inc., 5.625% to 7/15/30, Series Fa,b		$	1,728,000	$	2,017,872
JPMorgan Chase & Co., 4.60% to 2/1/25, Series HHa,b			847,000		874,528
JPMorgan Chase & Co., 5.00% to 8/1/24, Series FFa,b			1,995,000		2,104,057
JPMorgan Chase & Co., 6.00% to 8/1/23, Series Ra,b			1,000,000		1,063,625
JPMorgan Chase & Co., 6.10% to 10/1/24, Series Xa,b			3,625,000		3,948,984
JPMorgan Chase & Co., 6.125% to 4/30/24, Series Ua,b			3,644,000		3,966,130
JPMorgan Chase & Co., 6.75% to 2/1/24, Series Sa,b			860,000		956,213
Regions Financial Corp., 5.75% to 6/15/25, Series Da,b			973,000		1,087,327
Truist Financial Corp., 4.95% to 9/1/25, Series Pa,b			1,562,000		1,722,105
Truist Financial Corp., 5.10% to 3/1/30, Series Qa,b			1,012,000		1,128,451
Truist Financial Corp., 5.125% to 12/15/27, Series Ma,b			1,718,000		1,839,978
US Bancorp., 5.30% to 4/15/27, Series Ja,b			995,000		1,120,619
Wells Fargo & Co., 3.90% to 3/15/26, Series BBa,b			8,081,000		8,267,065
Wells Fargo & Co., 5.875% to 6/15/25, Series Ua,b			2,300,000		2,567,375
Wells Fargo & Co., 5.95%, due 12/15/36			1,605,000		2,140,802
Wells Fargo & Co., 7.95%, due 11/15/29, Series B			23,000		31,443
					84,554,014
BANKS—FOREIGN	31.2%
Abanca Corp. Bancaria SA, 6.00% to 1/20/26 (Spain)a,b,e,f			1,200,000		1,510,309
Banco Bilbao Vizcaya Argentaria SA, 6.50% to 3/5/25, Series 9 (Spain)a,b,f			1,200,000		1,315,440
Banco BPM SpA, 6.125% to 1/21/25 (Italy)a,b,e,f			1,000,000		1,253,796
Banco BPM SpA, 6.50% to 1/19/26 (Italy)a,b,e,f			600,000		772,690
Banco de Sabadell SA, 5.75% to 3/15/26 (Spain)a,b,e,f			1,200,000		1,512,634
Banco de Sabadell SA, 6.50% to 5/18/22 (Spain)a,b,e,f			400,000		489,316
Banco do Brasil SA/Cayman, 9.00% to 6/18/24, 144A (Brazil)a,b,d,f			1,600,000		1,751,216
Banco Santander SA, 7.50% to 2/8/24 (Spain)a,b,e,f			1,000,000		1,105,625
Bank of China Hong Kong Ltd., 5.90% to 9/14/23, 144A (Hong Kong)a,b,d			400,000		432,100
Bank of Ireland Group PLC, 6.00% to 9/1/25 (Ireland)a,b,e,f			1,000,000		1,340,779
Bank of Ireland Group PLC, 7.50% to 5/19/25 (Ireland)a,b,e,f			1,600,000		2,281,776
Bank of Montreal, 4.30% to 10/26/25, due 11/26/80 (Canada)b			1,800,000		1,537,077
Bank of Nova Scotia/The, 4.90% to 6/4/25 (Canada)a,b			1,745,000		1,877,969
Barclays PLC, 5.875% to 9/15/24 (United Kingdom)a,b,e,f			200,000		295,022
Barclays PLC, 6.125% to 12/15/25 (United Kingdom)a,b,f			1,600,000		1,771,312

See accompanying notes to financial statements.

10

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

SCHEDULE OF INVESTMENTS—(Continued)

April 30, 2021 (Unaudited)

	Principal Amount		Value
Barclays PLC, 7.25% to 3/15/23 (United Kingdom)a,b,e,f	$	600,000	$	898,027
Barclays PLC, 7.875% to 3/15/22 (United Kingdom)a,b,e,f		2,000,000		2,103,750
Barclays PLC, 8.00% to 6/15/24 (United Kingdom)a,b,f		1,600,000		1,817,000
BNP Paribas SA, 6.625% to 3/25/24, 144A (France)a,b,d,f		2,600,000		2,865,850
BNP Paribas SA, 6.75% to 3/14/22, 144A (France)a,b,d,f		800,000		829,752
BNP Paribas SA, 7.00% to 8/16/28, 144A (France)a,b,d,f		1,000,000		1,178,745
BNP Paribas SA, 7.195% to 6/25/37, 144A (France)a,b,d		400,000		424,500
BNP Paribas SA, 7.375% to 8/19/25, 144A (France)a,b,d,f		1,400,000		1,634,647
CaixaBank SA, 5.875% to 10/9/27 (Spain)a,b,e,f		1,000,000		1,378,590
Commerzbank AG, 6.125% to 10/9/25 (Germany)a,b,e,f		400,000		519,822
Commerzbank AG, 7.00% to 4/9/25 (Germany)a,b,e,f		1,200,000		1,296,043
Cooperatieve Rabobank UA, 3.10% to 6/29/28 (Netherlands)a,b,e,f		1,400,000		1,691,666
Credit Agricole SA, 6.875% to 9/23/24, 144A (France)a,b,d,f		2,000,000		2,234,770
Credit Agricole SA, 7.875% to 1/23/24, 144A (France)a,b,d,f		2,000,000		2,265,000
Credit Agricole SA, 8.125% to 12/23/25, 144A (France)a,b,d,f		1,800,000		2,186,316
Credit Suisse Group AG, 4.50% to 9/3/30, 144A (Switzerland)a,b,d,f		1,400,000		1,340,500
Credit Suisse Group AG, 5.25% to 2/11/27, 144A (Switzerland)a,b,d,f		2,200,000		2,290,750
Credit Suisse Group AG, 6.375% to 8/21/26, 144A (Switzerland)a,b,d,f		2,200,000		2,393,941
Credit Suisse Group AG, 7.125% to 7/29/22 (Switzerland)a,b,e,f		1,600,000		1,669,760
Credit Suisse Group AG, 7.25% to 9/12/25, 144A (Switzerland)a,b,d,f		2,200,000		2,436,489
Credit Suisse Group AG, 7.50% to 7/17/23, 144A (Switzerland)a,b,d,f		2,800,000		3,002,440
Credit Suisse Group AG, 7.50% to 12/11/23, 144A (Switzerland)a,b,d,f		800,000		882,000
Deutsche Bank AG, 7.50% to 4/30/25 (Germany)a,b,f		600,000		664,440
DNB Bank ASA, 6.50% to 3/26/22 (Norway)a,b,e,f		600,000		626,244
HSBC Holdings PLC, 4.60% to 12/17/30 (United Kingdom)a,b,f		800,000		814,000
HSBC Holdings PLC, 6.375% to 9/17/24 (United Kingdom)a,b,f		800,000		874,000
HSBC Holdings PLC, 6.375% to 3/30/25 (United Kingdom)a,b,f		800,000		886,780

See accompanying notes to financial statements.

11

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

SCHEDULE OF INVESTMENTS—(Continued)

April 30, 2021 (Unaudited)

	Principal Amount		Value
HSBC Holdings PLC, 6.50% to 3/23/28 (United Kingdom)a,b,f	$	800,000	$	910,500
ING Groep N.V., 5.75% to 11/16/26 (Netherlands)a,b,f		800,000		882,580
ING Groep N.V., 6.50% to 4/16/25 (Netherlands)a,b,f		1,000,000		1,115,650
ING Groep N.V., 6.75% to 4/16/24 (Netherlands)a,b,e,f		1,200,000		1,323,000
ING Groep N.V., 6.875% to 4/16/22 (Netherlands)a,b,e,f		1,200,000		1,254,782
Intesa Sanpaolo SpA, 7.70% to 9/17/25, 144A (Italy)a,b,d,f		1,000,000		1,140,000
Lloyds Banking Group PLC, 7.50% to 6/27/24 (United Kingdom)a,b,f		1,200,000		1,358,508
Lloyds Banking Group PLC, 7.50% to 9/27/25 (United Kingdom)a,b,f		600,000		695,250
Nationwide Building Society, 5.75% to 6/20/27 (United Kingdom)a,b,e,f		800,000		1,230,570
Natwest Group PLC, 6.00% to 12/29/25 (United Kingdom)a,b,f		1,000,000		1,108,700
Natwest Group PLC, 8.00% to 8/10/25 (United Kingdom)a,b,f		2,800,000		3,304,056
Nordea Bank Abp, 6.625% to 3/26/26, 144A (Finland)a,b,d,f		1,200,000		1,389,402
Royal Bank of Canada, 4.50% to 10/24/25, due 11/24/80, Series 1 (Canada)b		2,400,000		2,072,574
Societe Generale SA, 5.375% to 11/18/30, 144A (France)a,b,d,f		400,000		417,000
Societe Generale SA, 6.75% to 4/6/28, 144A (France)a,b,d,f		1,600,000		1,787,920
Societe Generale SA, 7.875% to 12/18/23, 144A (France)a,b,d,f		2,000,000		2,243,500
Societe Generale SA, 8.00% to 9/29/25, 144A (France)a,b,d,f		1,200,000		1,416,522
Standard Chartered PLC, 4.75% to 1/14/31, 144A (United Kingdom)a,b,d,f		400,000		406,330
Standard Chartered PLC, 7.50% to 4/2/22, 144A (United Kingdom)a,b,d,f		1,600,000		1,673,608
Standard Chartered PLC, 7.75% to 4/2/23, 144A (United Kingdom)a,b,d,f		1,600,000		1,749,744
Stichting AK Rabobank Certificaten, 2.188% (Netherlands)a,e		995,725		1,573,619
Svenska Handelsbanken AB, 4.375% to 3/1/27 (Sweden)a,b,e,f		600,000		628,878
Svenska Handelsbanken AB, 4.75% to 3/1/31 (Sweden)a,b,e,f		600,000		631,500
UBS Group AG, 6.875% to 8/7/25 (Switzerland)a,b,e,f		2,800,000		3,190,183

See accompanying notes to financial statements.

12

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

SCHEDULE OF INVESTMENTS—(Continued)

April 30, 2021 (Unaudited)

		Principal Amount		Value
UBS Group AG, 7.00% to 2/19/25 (Switzerland)a,b,e,f		$	400,000	$	462,250
UBS Group AG, 7.00% to 1/31/24, 144A (Switzerland)a,b,d,f			2,800,000		3,090,682
UniCredit SpA, 7.50% to 6/3/26 (Italy)a,b,e,f			400,000		571,369
UniCredit SpA, 8.00% to 6/3/24 (Italy)a,b,e,f			800,000		896,400
					98,977,960
ELECTRIC	1.3%
CenterPoint Energy, Inc., 6.125% to 9/1/23, Series Aa,b			574,000		612,386
CMS Energy Corp., 4.75% to 3/1/30, due 6/1/50b			992,000		1,091,200
Duke Energy Corp., 4.875% to 9/16/24a,b			500,000		531,400
General Electric Co., 3.514% (3 Month US LIBOR + 3.33%), Series D (FRN)a,c			1,000,000		951,870
Southern Co./The, 4.00% to 10/15/25, due 1/15/51, Series Bb			1,010,000		1,080,700
					4,267,556
ELECTRIC—FOREIGN	0.5%
Electricite de France SA, 5.00% to 1/22/26, Series EMTN (France)a,b,e			1,100,000		1,504,044
FINANCIAL	4.8%
CREDIT CARD	0.2%
Discover Financial Services, 6.125% to 6/23/25, Series Da,b			670,000		757,938
DIVERSIFIED FINANCIAL SERVICES	1.2%
Apollo Management Holdings LP, 4.95% to 12/17/24, due 1/14/50, 144Ab,d			450,000		465,187
ILFC E-Capital Trust I, 4.00% (3 Month US LIBOR + 1.55%), due 12/21/65, 144A (FRN)c,d			500,000		411,250
ILFC E-Capital Trust II, 4.25% (3 Month US LIBOR + 1.80%), due 12/21/65, 144A (FRN)c,d			3,325,000		2,831,404
					3,707,841
INVESTMENT BANKER/BROKER	3.4%
Charles Schwab Corp./The, 4.00% to 12/1/30, Series Ha,b			620,000		628,804
Charles Schwab Corp./The, 4.00% to 6/1/26, Series Ia,b			7,084,000		7,296,945
Charles Schwab Corp./The, 5.375% to 6/1/25, Series Ga,b			2,227,000		2,481,769
Morgan Stanley, 5.875% to 9/15/26, Series Ma,b			400,000		454,500
					10,862,018
TOTAL FINANCIAL					15,327,797

See accompanying notes to financial statements.

13

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

SCHEDULE OF INVESTMENTS—(Continued)

April 30, 2021 (Unaudited)

		Principal Amount		Value
INSURANCE	13.6%
LIFE/HEALTH INSURANCE	3.4%
Equitable Holdings, Inc., 4.95% to 9/15/25, Series Ba,b		$	2,460,000	$	2,653,725
MetLife Capital Trust IV, 7.875%, due 12/15/37, 144A (TruPS)d			900,000		1,248,750
MetLife, Inc., 9.25%, due 4/8/38, 144Ad			600,000		907,077
MetLife, Inc., 10.75%, due 8/1/39			905,000		1,533,578
Provident Financing Trust I, 7.405%, due 3/15/38			565,000		668,784
Prudential Financial, Inc., 5.625% to 6/15/23, due 6/15/43b			1,175,000		1,274,868
SBL Holdings, Inc., 7.00% to 5/13/25, 144Aa,b,d			940,000		925,900
Voya Financial, Inc., 5.65% to 5/15/23, due 5/15/53b			760,000		816,426
Voya Financial, Inc., 6.125% to 9/15/23, Series Aa,b			561,000		619,888
					10,648,996
LIFE/HEALTH INSURANCE—FOREIGN	2.4%
Dai-ichi Life Insurance Co., Ltd., 5.10% to 10/28/24, 144A (Japan)a,b,d			600,000		664,500
Fukoku Mutual Life Insurance Co., 5.00% to 7/28/25 (Japan)a,b,e			600,000		664,500
La Mondiale SAM, 5.875% to 1/26/27, due 1/26/47 (France)b,e			690,000		784,510
Legal & General Group PLC, 5.625% to 3/24/31 (United Kingdom)a,b,e,f			600,000		920,048
Rothesay Life PLC, 6.875% to 9/12/28 (United Kingdom)a,b,e,f			1,000,000		1,598,600
Sumitomo Life Insurance Co., 3.375% to 4/15/31, due 4/15/81, 144A (Japan)b,d			2,800,000		2,826,432
					7,458,590
MULTI-LINE	1.8%
American International Group, Inc., 5.75% to 4/1/28, due 4/1/48, Series A-9b			685,000		776,619
American International Group, Inc., 8.175% to 5/15/38, due 5/15/58b			2,630,000		3,727,231
Hartford Financial Services Group, Inc./The, 2.319% (3 Month US LIBOR + 2.125%), due 2/12/47, 144A, Series ICON (FRN)c,d			1,236,000		1,189,685
					5,693,535

See accompanying notes to financial statements.

14

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

SCHEDULE OF INVESTMENTS—(Continued)

April 30, 2021 (Unaudited)

		Principal Amount		Value
MULTI-LINE—FOREIGN	1.7%
AXA SA, 6.379% to 12/14/36, 144A (France)a,b,d		$	1,300,000	$	1,803,080
AXA SA, 8.60%, due 12/15/30 (France)			375,000		569,212
CNP Assurances, 4.875% to 4/7/31 (France)a,b,e,f			1,800,000		1,855,125
UnipolSai Assicurazioni SpA, 6.375% to 4/27/30 (Italy)a,b,e,f			800,000		1,071,797
					5,299,214
PROPERTY CASUALTY	1.7%
Assurant, Inc., 7.00% to 3/27/28, due 3/27/48b			230,000		260,475
Enstar Finance LLC, 5.75% to 9/1/25, due 9/1/40b			2,160,000		2,281,500
Liberty Mutual Group, Inc., 7.80%, due 3/15/37, 144Ad			250,000		324,483
Markel Corp., 6.00% to 6/1/25a,b			1,460,000		1,607,883
PartnerRe Finance B LLC, 4.50% to 4/1/30, due 10/1/50b			990,000		1,019,853
					5,494,194
PROPERTY CASUALTY—FOREIGN	2.3%
Athora Netherlands NV, 6.25% to 11/16/22 (Netherlands)a,b,e			1,000,000		1,059,325
Lancashire Holdings Ltd., 5.625% to 3/18/31, due 9/18/41 (United Kingdom)b,e			2,400,000		2,511,864
QBE Insurance Group Ltd., 5.875% to 5/12/25, 144A (Australia)a,b,d			3,300,000		3,584,625
QBE Insurance Group Ltd., 5.875% to 6/17/26, due 6/17/46, Series EMTN (Australia)b,e			200,000		219,934
					7,375,748
REINSURANCE	0.3%
AXIS Specialty Finance LLC, 4.90% to 1/15/30, due 1/15/40b			950,000		988,902
TOTAL INSURANCE					42,959,179
INTEGRATED TELECOMMUNICATIONS SERVICES—FOREIGN	0.7%
Vodafone Group PLC, 7.00% to 1/4/29, due 4/4/79 (United Kingdom)b			1,720,000		2,098,196
PIPELINES	0.0%
Energy Transfer LP, 7.125% to 5/15/30, Series Ga,b			123,000		125,767
PIPELINES—FOREIGN	4.2%
Enbridge, Inc., 5.75% to 4/15/30, due 7/15/80, Series 20-A (Canada)b			4,455,000		4,924,156

See accompanying notes to financial statements.

15

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

SCHEDULE OF INVESTMENTS—(Continued)

April 30, 2021 (Unaudited)

		Principal Amount		Value
Enbridge, Inc., 6.00% to 1/15/27, due 1/15/77, Series 16-A (Canada)b		$	1,462,000	$	1,575,595
Enbridge, Inc., 6.25% to 3/1/28, due 3/1/78 (Canada)b			431,000		467,888
Transcanada Trust, 5.50% to 9/15/29, due 9/15/79 (Canada)b			2,707,000		2,941,101
Transcanada Trust, 5.875% to 8/15/26, due 8/15/76, Series 16-A (Canada)b			3,020,000		3,355,975
					13,264,715
REAL ESTATE—RETAIL—FOREIGN	1.7%
Scentre Group Trust 2, 4.75% to 6/24/26, due 9/24/80, 144A (Australia)b,d			3,300,000		3,502,125
Scentre Group Trust 2, 5.125% to 6/24/30, due 9/24/80, 144A (Australia)b,d			1,700,000		1,802,085
					5,304,210
UTILITIES	6.6%
ELECTRIC UTILITIES	2.5%
Edison International, 5.375% to 3/15/26, Series Aa,b			3,830,000		3,971,978
NextEra Energy Capital Holdings, Inc., 5.65% to 5/1/29, due 5/1/79b			509,000		593,025
Sempra Energy, 4.875% to 10/15/25a,b			3,080,000		3,377,035
					7,942,038
ELECTRIC UTILITIES—FOREIGN	3.7%
BP Capital Markets PLC, 4.875% to 3/22/30 (United Kingdom)a,b			4,248,000		4,570,848
Emera, Inc., 6.75% to 6/15/26, due 6/15/76, Series 16-A (Canada)b			4,899,000		5,679,631
Enel SpA, 8.75% to 9/24/23, due 9/24/73, 144A (Italy)b,d			1,331,000		1,557,270
					11,807,749
GAS UTILITIES	0.4%
South Jersey Industries, Inc., 5.02%, due 4/15/31			1,030,000		1,076,831
TOTAL UTILITIES					20,826,618
TOTAL PREFERRED SECURITIES—CAPITAL SECURITIES (Identified cost—$273,881,780)					289,210,056

See accompanying notes to financial statements.

16

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

SCHEDULE OF INVESTMENTS—(Continued)

April 30, 2021 (Unaudited)

		Shares		Value
SHORT-TERM INVESTMENTS	1.4%
MONEY MARKET FUNDS
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01%g			4,506,567	$	4,506,567
TOTAL SHORT-TERM INVESTMENTS (Identified cost—$4,506,567)					4,506,567
TOTAL INVESTMENTSIN SECURITIES (Identified cost—$299,388,968)	99.8%				316,049,319
OTHER ASSETSIN EXCESSOF LIABILITIES	0.2				770,346
NET ASSETS	100.0%			$	316,819,665

Forward Foreign Currency Exchange Contracts

Counterparty	Contracts to Deliver		In Exchange For		Settlement Date		Unrealized Appreciation (Depreciation)
Brown Brothers Harriman	CAD	7,259,963	USD	5,773,927		5/4/21	$	(132,570	)
Brown Brothers Harriman	EUR	15,600,521	USD	18,341,065		5/4/21		(414,656	)
Brown Brothers Harriman	EUR	1,406,816	USD	1,684,642		5/4/21		(6,702	)
Brown Brothers Harriman	USD	17,378,330	EUR	14,437,666		5/4/21		(20,651	)
Brown Brothers Harriman	USD	627,305	EUR	518,364		5/4/21		(4,103	)
Brown Brothers Harriman	USD	499,125	EUR	416,577		5/4/21		1,704
Brown Brothers Harriman	USD	505,112	EUR	423,351		5/4/21		3,862
Brown Brothers Harriman	USD	5,900,874	CAD	7,259,963		5/4/21		5,624
Brown Brothers Harriman	USD	462,116	EUR	391,013		5/4/21		7,980
Brown Brothers Harriman	USD	976,562	EUR	820,366		5/4/21		9,723
Brown Brothers Harriman	GBP	5,258,204	USD	7,257,268		5/5/21		(4,572	)
Brown Brothers Harriman	USD	1,503,085	GBP	1,077,100		5/5/21		(15,557	)
Brown Brothers Harriman	USD	5,006,000	GBP	3,615,250		5/5/21		(13,161	)
Brown Brothers Harriman	USD	787,528	GBP	565,854		5/5/21		(6,056	)
Brown Brothers Harriman	CAD	7,493,331	USD	6,090,357		6/2/21		(6,330	)
Brown Brothers Harriman	EUR	14,444,682	USD	17,395,369		6/2/21		19,397
Brown Brothers Harriman	GBP	3,615,326	USD	5,006,015		6/2/21		12,794
							$	(563,274	)

See accompanying notes to financial statements.

17

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

SCHEDULE OF INVESTMENTS—(Continued)

April 30, 2021 (Unaudited)

Note: Percentages indicated are based on the net assets of the Fund.

^†  Represents shares.

^a  Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer.

^b  Security converts to floating rate after the indicated fixed-rate coupon period.

^c  Variable rate. Rate shown is in effect at April 30, 2021.

^d  Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may only be resold to qualified institutional buyers. Aggregate holdings amounted to $75,964,560 which represents 24.0% of the net assets of the Fund, of which 0.0% are illiquid.

^e  Securities exempt from registration under Regulation S of the Securities Act of 1933. These securities are subject to resale restrictions. Aggregate holdings amounted to $44,698,147 which represents 14.1% of the net assets of the Fund, of which 0.0% are illiquid.

^f  Contingent Capital security (CoCo). CoCos are debt or preferred securities with loss absorption characteristics built into the terms of the security for the benefit of the issuer. Aggregate holdings amounted to $96,505,691 or 30.5% of the net assets of the Fund.

^g  Rate quoted represents the annualized seven-day yield.

Glossary of Portfolio Abbreviations

CAD	Canadian Dollar
EMTN	Euro Medium Term Note
EUR	Euro Currency
FRN	Floating Rate Note
GBP	Great British Pound
LIBOR	London Interbank Offered Rate
TruPS	Trust Preferred Securities
USD	United States Dollar

See accompanying notes to financial statements.

18

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

SCHEDULE OF INVESTMENTS—(Continued)

April 30, 2021 (Unaudited)

Country Summary	% of Net Assets
United States		49.2
United Kingdom		10.6
Canada		8.5
France		8.2
Switzerland		6.6
Australia		2.9
Netherlands		2.8
Spain		2.3
Italy		2.3
Japan		1.3
Ireland		1.1
Germany		0.8
Brazil		0.6
Other		2.8
		100.0

See accompanying notes to financial statements.

19

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

STATEMENT OF ASSETS AND LIABILITIES

April 30, 2021 (Unaudited)

ASSETS:
Investments in securities, at value (Identified cost—$299,388,968)	$	316,049,319
Foreign currency, at value (Identified cost—$11,822)		11,808
Cash		457,290
Receivable for:
Dividends and interest		3,205,142
Fund shares sold		2,697,190
Investment securities sold		262,421
Unrealized appreciation on forward foreign currency exchange contracts		61,084
Due from investment advisor		26,228
Other assets		5,604
Total Assets		322,776,086
LIABILITIES:
Unrealized depreciation on forward foreign currency exchange contracts		624,358
Due to custodian		216,345
Payable for:
Investment securities purchased		3,661,202
Dividends declared		1,010,818
Fund shares redeemed		325,859
Directors’ fees		390
Other liabilities		117,449
Total Liabilities		5,956,421
NET ASSETS applicable to 28,091,461 shares of $0.001 par value of common stock outstanding	$	316,819,665
NET ASSET VALUE PER SHARE:
($316,819,665 ÷ 28,091,461 shares outstanding)	$	11.28
NET ASSETS consist of:
Paid-in capital	$	301,702,440
Total distributable earnings/(accumulated loss)		15,117,225
	$316,819,665

See accompanying notes to financial statements.

20

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

STATEMENT OF OPERATIONS

For the Six Months Ended April 30, 2021 (Unaudited)

Investment Income:
Interest income	$	6,040,992
Dividend income (net of $3,070 of foreign withholding tax)		731,930
Total Investment Income		6,772,922
Expenses:
Professional fees		58,591
Registration and filing fees		34,012
Administration fees		25,073
Shareholder reporting expenses		14,158
Transfer agent fees and expenses		7,122
Directors’ fees and expenses		6,011
Custodian fees and expenses		4,352
Miscellaneous		4,735
Total Expenses		154,054
Reduction of Expenses (See Note 2)		(154,054	)
Net Expenses		—
Net Investment Income (Loss)		6,772,922
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in securities		5,583,804
Forward foreign currency exchange contracts		(340,102	)
Foreign currency transactions		(2,303	)
Net realized gain (loss)		5,241,399
Net change in unrealized appreciation (depreciation) on:
Investments in securities		10,246,281
Forward foreign currency exchange contracts		(693,341	)
Foreign currency translations		2,719
Net change in unrealized appreciation (depreciation)		9,555,659
Net Realized and Unrealized Gain (Loss)		14,797,058
Net Increase (Decrease) in Net Assets Resulting from Operations	$	21,569,980

See accompanying notes to financial statements.

21

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

STATEMENT OF CHANGES IN NET ASSETS (Unaudited)

	For the Six Months Ended April 30, 2021			For the Year Ended October 31, 2020
Change in Net Assets:
From Operations:
Net investment income (loss)	$	6,772,922		$	9,253,012
Net realized gain (loss)		5,241,399			(6,911,407	)
Net change in unrealized appreciation (depreciation)		9,555,659			5,234,409
Net increase (decrease) in net assets resulting from operations		21,569,980			7,576,014
Distributions to Shareholders		(7,570,787	)		(9,324,937	)
Capital Stock Transactions:
Increase (decrease) in net assets from Fund share transactions		31,739,249			206,083,729
Total increase (decrease) in net assets		45,738,442			204,334,806
Net Assets:
Beginning of period		271,081,223			66,746,417
End of period	$	316,819,665		$	271,081,223

See accompanying notes to financial statements.

22

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

FINANCIAL HIGHLIGHTS (Unaudited)

The following table includes 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.

Per Share Operating Data:	For the Six Months  Ended April 30, 2021			For the Year Ended October 31, 2020			For the Period March 1,  2019a through October 31, 2019
Net asset value, beginning of period		$10.73			$10.74			$10.00
Income (loss) from investment operations:
Net investment income (loss)b		0.26			0.49			0.35
Net realized and unrealized gain (loss)		0.57			(0.01	)		0.71
Total from investment operations		0.83			0.48			1.06
Less dividends and distributions to shareholders from:
Net investment income		(0.28	)		(0.48	)		(0.32	)
Net realized gain		—			(0.01	)		—
Total dividends and distributions to shareholders		(0.28	)		(0.49	)		(0.32	)
Net increase (decrease) in net asset value		0.55			(0.01	)		0.74
Net asset value, end of period		$11.28			$10.73			$10.74
Total return		7.81	%c		4.66	%		10.77	%c
Ratios/Supplemental Data:
Net assets, end of period (in millions)		$316.8			$271.1			$66.7
Ratios to average daily net assets:
Expenses (before expense reduction)		0.11	%d		0.15	%		1.13	%e
Expenses (net of expense reduction)f		0.00	%d		0.00	%		0.00	%e
Net investment income (loss) (before expense reduction)		4.52	%d		4.60	%		3.93	%e
Net investment income (loss) (net of expense reduction)		4.63	%d		4.75	%		5.06	%e
Portfolio turnover rate		42	%c		99	%		25	%c

^a  Commencement of investment operations.

^b  Calculation based on average shares outstanding.

^c  Not annualized.

^d  Annualized.

^e  Ratios for periods less than one year are annualized. Certain professional, shareholder reporting and non-recurring expenses incurred by the Fund are not annualized for periods less than one year.

^f  The Fund’s expenses have been contractually capped at 0.00%. See Note 2 in Notes to Financial Statements.

See accompanying notes to financial statements.

23

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1. Organization and Significant Accounting Policies

Cohen & Steers Preferred Securities and Income SMA Shares, Inc. (the Fund) was incorporated under the laws of the State of Maryland on November 16, 2018 and is registered under the Investment Company Act of 1940 (the 1940 Act) as a non-diversified, open-end management investment company. The Fund’s investment objective is total return. Investment operations commenced on March 1, 2019. Shares of the Fund are only offered to participants in separately managed account (SMA) programs and to certain non-program SMA clients that have an agreement with Cohen & Steers Capital Management, Inc. (the investment advisor).

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 (ASC) 946—Investment Companies. The accounting policies of the Fund are in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

Portfolio Valuation: Investments in securities that are listed on the New York Stock Exchange (NYSE) are valued, except as indicated below, at the last sale price reflected at the close of the NYSE on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the closing bid and ask prices on such day or, if no ask price is available, at the bid price. Forward foreign currency exchange contracts are valued daily at the prevailing forward exchange rate.

Securities not listed on the NYSE but listed on other domestic or foreign securities exchanges (including NASDAQ) are valued in a similar manner. Securities traded on more than one securities exchange are valued at the last sale price reflected at the close of the exchange representing the principal market for such securities on the business day as of which such value is being determined. If after the close of a foreign market, but prior to the close of business on the day the securities are being valued, market conditions change significantly, certain non-U.S. equity holdings may be fair valued pursuant to procedures established by the Board of Directors.

Readily marketable securities traded in the over-the-counter (OTC) market, including listed securities whose primary market is believed by the investment advisor to be OTC, are valued on the basis of prices provided by a third-party pricing service or third-party broker-dealers when such prices are believed by the investment advisor, pursuant to delegation by the Board of Directors, to reflect the fair value of such securities.

Fixed-income securities are valued on the basis of prices provided by a third-party pricing service or third-party broker-dealers when such prices are believed by the investment advisor, pursuant to delegation by the Board of Directors, to reflect the fair value of such securities. The pricing services or broker-dealers use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services or broker-dealers may utilize a market-based approach

24

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services or broker-dealers also utilize proprietary valuation models which may consider market transactions in comparable securities and the various relationships between securities in determining fair value and/or characteristics such as benchmark yield curves, option-adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features which are then used to calculate the fair values.

Short-term debt securities with a maturity date of 60 days or less are valued at amortized cost, which approximates fair value. Investments in open-end mutual funds are valued at net asset value (NAV).

The policies and procedures approved by the Fund’s Board of Directors delegate authority to make fair value determinations to the investment advisor, subject to the oversight of the Board of Directors. The investment advisor has established a valuation committee (Valuation Committee) to administer, implement and oversee the fair valuation process according to the policies and procedures approved annually by the Board of Directors. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

Securities for which market prices are unavailable, or securities for which the investment advisor determines that the bid and/or ask price or a counterparty valuation does not reflect market value, will be valued at fair value, as determined in good faith by the Valuation Committee, pursuant to procedures approved by the Fund’s Board of Directors. Circumstances in which market prices may be unavailable include, but are not limited to, when trading in a security is suspended, the exchange on which the security is traded is subject to an unscheduled close or disruption or material events occur after the close of the exchange on which the security is principally traded. In these circumstances, the Fund determines fair value in a manner that fairly reflects the market value of the security on the valuation date based on consideration of any information or factors it deems appropriate. These may include, but are not limited to, recent transactions in comparable securities, information relating to the specific security and developments in the markets.

The Fund’s use of fair value pricing may cause the NAV of Fund shares to differ from the NAV that would be calculated using market quotations. Fair value pricing involves subjective judgments and it is possible that the fair value determined for a security may be materially different than the value that could be realized upon the sale of that security.

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

25

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.)

• Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing investments may or may not be an indication of the risk associated with those investments. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy.

The following is a summary of the inputs used as of April 30, 2021 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	$	5,132,686		$	2,611,174	$	2,521,512		$	—
Other Industries		17,200,010			17,200,010		—			—
Preferred Securities—
Capital Securities		289,210,056			—		289,210,056			—
Short-Term Investments		4,506,567			—		4,506,567			—
Total Investments in Securitiesa	$	316,049,319		$	19,811,184	$	296,238,135		$	—
Forward Foreign Currency Exchange Contracts	$	61,084		$	—	$	61,084		$	—
Total Derivative Assetsa	$	61,084		$	—	$	61,084		$	—
Forward Foreign Currency Exchange Contracts	$	(624,358	)	$	—	$	(624,358	)	$	—
Total Derivative Liabilitiesa	$	(624,358	)	$	—	$	(624,358	)	$	—

^a  Portfolio holdings are disclosed individually on the Schedule of Investments.

26

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

The following is a reconciliation of investments for which significant unobservable inputs (Level 3) were used in determining fair value:

	Preferred Securities—Capital Securities—Banks
Balance as of October 31, 2020	$	2,777,138
Transfer out of Level 3a		(2,803,531	)
Accrued discount (premium)		(631	)
Change in unrealized appreciation (depreciation)		27,024
Balance as of April 30, 2021	$	—

^a  As of October 31, 2020, the Fund used significant unobservable inputs in determining the value of this investment. As of April 30, 2021, the same investment was transferred from Level 3 to Level 2 as a result of the availability of observable inputs.

Security Transactions and Investment Income: Security transactions are recorded on trade date. Realized gains and losses on investments sold are recorded on the basis of identified cost. Interest income, which includes the amortization of premiums and accretion of discounts, is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date, except for certain dividends on foreign securities, which are recorded as soon as the Fund is informed after the ex-dividend date.

Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollars based upon prevailing exchange rates on the respective dates of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments in securities.

Net realized foreign currency transaction gains or losses arise from sales of foreign currencies, (excluding gains and losses on forward foreign currency exchange contracts, which are presented separately, if any) currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency translation gains and losses arise from changes in the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates. Pursuant to U.S. federal income tax regulations, certain foreign currency gains/losses included in realized and unrealized gains/losses are included in or are a reduction of ordinary income for federal income tax purposes.

27

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

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 forward foreign currency exchange contracts. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are included in net realized gain or loss on forward foreign currency exchange contracts. For federal income tax purposes, the Fund has made an election to treat gains and losses from forward foreign currency exchange contracts as capital gains and losses.

Forward foreign currency exchange contracts involve elements of market risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the contract. Risks may also arise upon entering these contracts from the potential inability of the counterparties to meet the terms of their contracts. In connection with these contracts, securities may be identified as collateral in accordance with the terms of the respective contracts.

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 paid in cash. Dividends from net investment income are subject to recharacterization for tax purposes.

Income Taxes: It is the policy of the Fund to continue to qualify as a regulated investment company (RIC), if such qualification is in the best interest of the shareholders, by complying with the requirements of Subchapter M of the Internal Revenue Code applicable to RICs, and by distributing substantially all of its taxable earnings to its shareholders. Also, in order to avoid the payment of any federal excise taxes, the Fund will distribute substantially all of its net investment income and net realized gains on a calendar year basis. Accordingly, no provision for federal income or excise tax is necessary. Dividend and interest income from holdings in non-U.S. securities is recorded net of non-U.S. taxes paid. Management has analyzed the Fund’s tax positions taken on federal and applicable state income tax returns as well as its tax positions in non-U.S. jurisdictions in which it trades for the current tax year and has concluded that as of April 30, 2021, no additional provisions for income tax are required in the Fund’s financial statements. The Fund’s tax positions for the current tax year for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service, state departments of revenue and by foreign tax authorities.

Note 2. Investment Advisory Fees, Administration Fees and Other Transactions with Affiliates

Investment Advisory Fees: Cohen & Steers Capital Management, Inc. serves as the Fund’s investment advisor pursuant to an investment advisory agreement (the investment advisory agreement).

28

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

Under the terms of the investment advisory agreement, the investment advisor provides the Fund with day-to-day investment decisions and generally manages the Fund’s investments in accordance with the stated policies of the Fund, subject to the supervision of the Board of Directors.

For its services under the investment advisory agreement, the investment advisor receives no investment advisory or other fees from the Fund. This arrangement recognizes that shares of the Fund are only offered to participants in SMA programs (each, a Program Participant) who pay fees to program sponsors (each, a Sponsor) for the costs and expenses of the programs, including fees for investment advice, custody and portfolio execution, and to certain non-program SMA clients of the investment advisor. When a Program Participant, alone or with his or her Sponsor, elects to allocate assets in an SMA to an investment strategy managed or advised by the investment advisor, the investment advisor typically receives a fee from the Sponsor for providing such advisory services to the SMA, including with respect to assets that may be invested in the Fund. In certain cases, a Program Participant will pay a fee for investment advice directly to the investment advisor in its capacity as advisor to the Program Participant’s SMA. Similarly, non-program SMA clients will pay fees directly to the investment advisor.

The investment advisor has contractually agreed to reimburse the Fund so that the total annual Fund operating expenses (excluding acquired fund fees and expenses, interest, taxes, extraordinary expenses, and other expenses approved by the Board of Directors) do not exceed 0.00%. This contractual agreement is currently expected to remain in place for the life of the Fund, can only be terminated by agreement of the Fund’s Board of Directors and the investment advisor, and will terminate automatically in the event of termination of the investment advisory agreement between the Fund and the investment advisor. For the six months ended April 30, 2021, fees waived and/or expenses reimbursed totaled $154,054.

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. For its services under the administration agreement, the investment advisor receives no fees from the Fund. The Fund pays State Street Bank and Trust Company as co-administrator under a fund accounting and administration agreement.

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 $779 for the six months ended April 30, 2021.

Note 3. Purchases and Sales of Securities

Purchases and sales of securities, excluding short-term investments, for the six months ended April 30, 2021, totaled $148,262,492 and $121,008,219, respectively.

29

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

Note 4. Derivative Investments

The following tables present the value of derivatives held at April 30, 2021 and the effect of derivatives held during the six months ended April 30, 2021, along with the respective location in the financial statements.

Statement of Assets and Liabilities

	Assets			Liabilities
Derivatives	Location	Fair Value		Location	Fair Value
Foreign Exchange Risk:
Forward Foreign Currency Exchange Contractsa	Unrealized appreciation	$	61,084	Unrealized depreciation	$	624,358

^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 (Loss)			Change in Unrealized Appreciation (Depreciation)
Foreign Exchange Risk:
Forward Foreign Currency Exchange Contracts	Net Realized and Unrealized Gain (Loss)	$	(340,102	)	$	(693,341	)

The following summarizes the volume of the Fund’s forward foreign currency exchange contracts activity for the six months ended April 30, 2021:

	Forward Foreign Currency Exchange Contracts
Average Notional Amount	$	28,313,776

Note 5. Income Tax Information

As of April 30, 2021, the federal tax cost and net unrealized appreciation (depreciation) in value of investments held were as follows:

Cost of investments in securities for federal income tax purposes	$	299,388,968
Gross unrealized appreciation on investments	$	16,900,412
Gross unrealized depreciation on investments		(803,335	)
Net unrealized appreciation (depreciation) on investments	$	16,097,077

30

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

As of October 31, 2020, the Fund has a net capital loss carryforward of $6,859,041 which may be used to offset future capital gains. These losses are a short-term capital loss carryforward and long-term capital loss carryforward of $6,828,343 and $30,698, respectively, which under current federal income tax rules, may offset capital gains recognized in any future period.

Note 6. Capital Stock

The Fund is authorized to issue 100 million shares of capital stock, at a par value of $0.001 per share. The Fund’s Board of Directors 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 April 30, 2021						For the Year Ended October 31, 2020
	Shares			Amount			Shares			Amount
Sold		7,789,026		$	87,117,885			24,205,919		$	258,867,915
Redeemed		(4,955,153	)		(55,378,636	)		(5,161,084	)		(52,784,186	)
Net increase (decrease)		2,833,873		$	31,739,249			19,044,835		$	206,083,729

Note 7. Other Risks

Preferred Securities Risk: Preferred securities are subject to credit risk, which is the risk that a security will decline in price, or the issuer of the security will fail to make dividend, interest or principal payments when due, because the issuer experiences a decline in its financial status. Preferred securities are also subject to interest rate risk and may decline in value because of changes in market interest rates. The Fund may be subject to a greater risk of rising interest rates than would normally be the case in an environment of low interest rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives. In addition, an issuer may be permitted to defer or omit distributions. Preferred securities are also generally subordinated to bonds and other debt instruments in a company’s capital structure. During periods of declining interest rates, an issuer may be able to exercise an option to redeem (call) its issue at par earlier than scheduled, and the Fund may be forced to reinvest in lower yielding securities. Certain preferred securities may be substantially less liquid than many other securities, such as common stocks. Generally, preferred security holders have no voting rights with respect to the issuing company unless certain events occur. Certain preferred securities may give the issuers special redemption rights allowing the securities to be redeemed prior to a specified date if certain events occur, such as changes to tax or securities laws.

Contingent Capital Securities Risk: Contingent capital securities (sometimes referred to as “CoCos”) are debt or preferred securities with loss absorption characteristics built into the terms of the security, for example, a mandatory conversion into common stock of the issuer under certain circumstances, such as the issuer’s capital ratio falling below a certain level. Since the common stock of the issuer may not pay a dividend, investors in these instruments could experience a reduced income rate, potentially to zero, and conversion would deepen the subordination of the investor, hence

31

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

worsening the investor’s standing in a bankruptcy. Some CoCos provide for a reduction in the value or principal amount of the security under such circumstances. In addition, most CoCos are considered to be high yield or “junk” securities and are therefore subject to the risks of investing in below investment-grade securities. Finally, CoCo issuers can, at their discretion, suspend dividend distributions on their CoCo securities and are more likely to do so in response to negative economic conditions and/or government regulation. Omitted distributions are typically non-cumulative and will not be paid on a future date. Any omitted distribution may negatively impact the returns or distribution rate of the Fund.

Credit and Below-Investment-Grade Securities Risk: Preferred securities may be rated below investment grade or may be unrated. Below-investment-grade securities, or equivalent unrated securities, which are commonly known as “high-yield bonds” or “junk bonds,” generally involve greater volatility of price and risk of loss of income and principal, and may be more susceptible to real or perceived adverse economic and competitive industry conditions than higher grade securities. It is reasonable to expect that any adverse economic conditions could disrupt the market for lower-rated securities, have an adverse impact on the value of those securities and adversely affect the ability of the issuers of those securities to repay principal and interest on those securities.

Concentration Risk: Because the Fund invests at least 25% of its net assets in the financials sector, it will be more susceptible to adverse economic or regulatory occurrences affecting this sector, such as changes in interest rates, loan concentration and competition. In addition, the Fund will also be subject to the risks of investing in the individual industries and securities that comprise the financials sector, including the bank, diversified financials, real estate (including REITs) and insurance industries. To the extent that the Fund focuses its investments in other sectors or industries, such as (but not limited to) energy, industrials, utilities, pipelines, health care and telecommunications, the Fund will be subject to the risks associated with these particular sectors and industries. These sectors and industries may be adversely affected by, among others, changes in government regulation, world events and economic conditions.

Non-Diversification Risk: As a “non-diversified” investment company, the Fund can invest in fewer individual companies than a diversified investment company. As a result, the Fund is more susceptible to any single political, regulatory or economic occurrence and to the financial condition of individual issuers in which it invests. The Fund’s relative lack of diversity may subject investors to greater risk of loss than a fund that has a diversified portfolio.

Liquidity Risk: Liquidity risk is the risk that particular investments of the Fund may become difficult to sell or purchase. The market for certain investments may become less liquid or illiquid due to adverse changes in the conditions of a particular issuer or due to adverse market or economic conditions. In addition, dealer inventories of certain securities, which provide an indication of the ability of dealers to engage in “market making,” are at, or near, historic lows in relation to market size, which has the potential to increase price volatility in the fixed income markets in which the Fund invests. Federal banking regulations may also cause certain dealers to reduce their inventories of certain securities, which may further decrease the Fund’s ability to buy or sell such securities. As a result of this decreased liquidity, the Fund may have to accept a lower price to sell a security, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative effect on performance.

32

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

Further, transactions in less liquid or illiquid securities may entail transaction costs that are higher than those for transactions in liquid securities.

Liquidity risk also includes the risk that market conditions or large shareholder redemptions may impact the ability of the Fund to meet redemption requests within required time periods. In order to meet such redemption requests, the fund may be forced to sell securities at inopportune times or prices.

Foreign (Non-U.S.) and Emerging Market Securities Risk: The Fund directly purchases securities of foreign issuers. Risks of investing in foreign securities, which can be expected to be greater for investments in emerging markets, include currency risks, future political and economic developments and possible imposition of foreign withholding taxes on income or proceeds payable on the securities. In addition, there may be less publicly available information about a foreign issuer than about a domestic issuer, and foreign issuers may not be subject to the same accounting, auditing and financial recordkeeping standards and requirements as domestic issuers. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers.

Foreign Currency Risk: Although the Fund will report its NAV and pay dividends in U.S. dollars, foreign securities often are purchased with and make any dividend and interest payments in foreign currencies. Therefore, the Fund’s investments in foreign securities will be subject to foreign currency risk, which means that the Fund’s NAV could decline solely as a result of changes in the exchange rates between foreign currencies and the U.S. dollar. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal, dividends and interest to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. The Fund may, but is not required to, engage in various investments that are designed to hedge the Fund’s foreign currency risks, and such investments are subject to the risks described under “Derivatives and Hedging Transactions Risk” below.

Derivatives and Hedging Transactions Risk: The Fund’s use of derivatives, including for the purpose of hedging interest rate or foreign currency risks, presents risks different from, and possibly greater than, the risks associated with investing directly in traditional securities. Among the risks presented are counterparty risk, financial leverage risk, liquidity risk, OTC trading risk and tracking risk. The use of derivatives can lead to losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivatives.

Geopolitical Risk: Occurrence of global events similar to those in recent years, such as war, terrorist attacks, natural or environmental disasters, country instability, infectious disease epidemics, such as that caused by the COVID-19 virus, market instability, debt crises and downgrades, embargoes, tariffs, sanctions and other trade barriers and other governmental trade or market control programs, the potential exit of a country from its respective union and related geopolitical events, may result in market volatility and may have long-lasting impacts on both the U.S. and global financial markets. Additionally, those events, as well as other changes in foreign and domestic political and economic conditions, could adversely affect individual issuers or related groups of issuers, securities markets, interest rates, secondary trading, credit ratings, inflation, investor sentiment and other factors affecting the value of the Fund’s investments.

33

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

An outbreak of respiratory disease caused by a novel coronavirus designated as COVID-19 has resulted in, among other things, extreme volatility in the financial markets and severe losses, reduced liquidity of many instruments, significant travel restrictions, significant disruptions to business operations, supply chains and customer activity, lower consumer demand for goods and services, service and event cancellations, reductions and other changes, strained healthcare systems, as well as general concern and uncertainty. The impact of the COVID-19 outbreak has negatively affected the global economy, the economies of individual countries, and the financial performance of individual issuers, sectors, industries, asset classes, and markets in significant and unforeseen ways. Pandemics may also exacerbate other pre-existing political, social, economic, market and financial risks. The effects of the outbreak in developing or emerging market countries may be greater due to less established health care systems and supply chains. The COVID-19 pandemic and its effects may result in a sustained economic downturn or a global recession, ongoing market volatility and/or decreased liquidity in the financial markets, exchange trading suspensions and closures, higher default rates, domestic and foreign political and social instability and damage to diplomatic and international trade relations. While some vaccines have been developed and approved for use by various governments, the political, social, economic, market and financial risks of COVID-19 could persist for years to come. The foregoing could impair the Fund’s ability to maintain operational standards (such as with respect to satisfying redemption requests), disrupt the operations of the Fund’s service providers, adversely affect the value and liquidity of the Fund’s investments, and negatively impact the Fund’s performance and your investment in the Fund.

On January 31, 2020, the United Kingdom (UK) withdrew from the European Union (EU) (referred to as Brexit), commencing a transition period that ended on December 31, 2020. On January 1, 2021, the EU-UK Trade and Cooperation Agreement, a bilateral trade and cooperation deal governing the future relationship between the UK and the EU, provisionally went into effect. The UK Parliament ratified the agreement in December 2020 and the EU Parliament ratified the agreement in April 2021. The agreement must now be approved by EU member states to enter into force officially. Brexit has resulted in volatility in European and global markets and could have negative long-term impacts on financial markets in the UK and throughout Europe. There is considerable uncertainty about the potential consequences of Brexit, the EU-UK Trade and Cooperation Agreement, how future negotiations of trade relations will proceed, and how the financial markets will react to all of the preceding. As this process unfolds, markets may be further disrupted. Given the size and importance of the UK’s economy, uncertainty about its legal, political and economic relationship with the remaining member states of the EU may continue to be a source of instability.

Growing tensions, including trade disputes, between the United States and other nations, or among foreign powers, and possible diplomatic, trade or other sanctions could adversely impact the global economy, financial markets and the Fund. The strengthening or weakening of the U.S. dollar relative to other currencies may, among other things, adversely affect the Fund’s investments denominated in non-U.S. dollar currencies. It is difficult to predict when similar events affecting the U.S. or global financial markets may occur, the effects that such events may have, and the duration of those effects.

34

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

Regulatory Risk: The U.S. government has proposed and adopted multiple regulations that could have a long-lasting impact on the Fund and on the mutual fund industry in general. The U.S. Securities and Exchange Commission’s (SEC) final rules, related requirements and amendments to modernize reporting and disclosure, along with other potential upcoming regulations, could, among other things, restrict the Fund’s ability to engage in transactions, impact flows into the Fund and/or increase overall expenses of the Fund. In addition, the SEC, Congress, various exchanges and regulatory and self-regulatory authorities, both domestic and foreign, have undertaken reviews of the use of derivatives by registered investment companies, which could affect the nature and extent of instruments used by the Fund. While the full extent of all of these regulations is still unclear, these regulations and actions may adversely affect both the Fund and the instruments in which the Fund invests and its ability to execute its investment strategy. Similarly, regulatory developments in other countries may have an unpredictable and adverse impact on the Fund.

The SEC has recently adopted a rule relating to a registered investment company’s use of derivatives and similar transactions that could potentially require the Fund to observe more stringent requirements than are currently imposed by the 1940 Act. The new rule will replace present SEC and SEC staff regulatory guidance related to limits on a registered investment company’s use of derivative instruments and certain other transactions, such as short sales and reverse repurchase agreements. The rule may substantially curtail the Fund’s ability to use derivative instruments as part of the Fund’s investment strategy and could ultimately prevent the Fund from being able to achieve its investment goals.

LIBOR Risk: Many financial instruments are tied to the London Interbank Offered Rate, or “LIBOR,” to determine payment obligations, financing terms, hedging strategies, or investment value. LIBOR is the offered rate for short-term Eurodollar deposits between major international banks. In 2017, the head of the UK Financial Conduct Authority (the FCA) announced a desire to phase out the use of LIBOR by the end of 2021. Alternatives to LIBOR are in development in many major financial markets. For example, the U.S. Federal Reserve has begun publishing a Secured Overnight Financing Rate (SOFR), a broad measure of secured overnight U.S. Treasury repo rates, as a possible replacement for U.S. dollar LIBOR. Bank working groups and regulators in other countries have suggested other alternatives for their markets, including the Sterling Overnight Interbank Average Rate (SONIA) in England. Other countries are introducing their own local-currency-denominated alternative reference rates for short-term lending and global consensus on alternative rates is lacking. The FCA and LIBOR’s administrator, ICE Benchmark Administration (“IBA”), announced a delay in the phase out of a majority of the U.S. dollar LIBOR publications until mid-2023, with the remainder of LIBOR publications to end at the end of 2021. It is possible that the FCA may compel the IBA to publish a subset of LIBOR settings after these dates on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. There remains uncertainty and risk regarding the willingness and ability of issuers and lenders to include enhanced provisions in new and existing contracts or instruments, the suitability of the proposed replacement rates, and the process for amending existing contracts and instruments remains unclear. As such, the transition away from LIBOR may lead to increased volatility and illiquidity in markets that are tied to LIBOR, reduced values of, inaccurate valuations of, and miscalculations of payment amounts for LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and reduced effectiveness of hedging strategies, adversely

35

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

affecting the Fund’s performance or NAV. In addition, any alternative reference rate may be an ineffective substitute resulting in prolonged adverse market conditions for the Fund. Since the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the cessation of LIBOR publications.

This is not a complete list of the risks that may affect the Fund. For additional information concerning the risks of investing in the Fund, please consult the Fund’s prospectus.

Note 8. Other

In the normal course of business, the Fund enters into contracts that provide general indemnifications. The Fund’s maximum exposure under these arrangements is dependent on claims that may be made against the Fund in the future and, therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote.

Note 9. Subsequent Events

Management has evaluated events and transactions occurring after April 30, 2021 through the date that the financial statements were issued, and has determined that no additional disclosure in the financial statements is required.

36

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

OTHER INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 800-330-7348, (ii) on our website at cohenandsteers.com or (iii) on the SEC’s website at http://www.sec.gov. In addition, the Fund’s proxy voting record for the most recent 12-month period ended June 30 is available by August 31 of each year (i) without charge, upon request, by calling 800-330-7348 or (ii) on the SEC’s website at http://www.sec.gov.

Disclosures of the Fund’s complete holdings are required to be made monthly on Form N-PORT, with every third month made available to the public by the SEC 60 days after the end of the Fund’s fiscal quarter. Previously, the Fund filed its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which has now been rescinded. Both the Fund’s Form N-Q and Form N-PORT are available (i) without charge, upon request, by calling 800-330-7348 or (ii) on the SEC’s website at http://www.sec.gov.

Please note that distributions paid by the Fund to shareholders are subject to recharacterization for tax purposes. The Fund may also pay distributions in excess of the Fund’s net investment company taxable income and net realized gains and this excess would be a tax free return of capital distributed from the Fund’s assets. 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.

Addition to Portfolio Management Team

Effective January 29, 2021, Mr. Jerry Dorost was added as portfolio manager of the Fund. Mr. Dorost joined the investment advisor in 2010 and currently serves as Senior Vice President of the investment advisor.

Changes to the Board of Directors

On March 8, 2021, the Board of Directors voted to set the number of directors on the Fund’s Board of Directors to ten. In addition, the Board of Directors elected Ms. Ramona Rogers-Windsor as a Director of the Fund.

Ramona Rogers-Windsor: In addition to serving as a Director of the Cohen & Steers funds, Ms. Rogers-Windsor serves as a member of the Thomas Jefferson University Board of Trustees since December 2020. Previously, Ms. Rogers-Windsor spent over 23 years in investment management with Northwestern Mutual Investment Company, LLC, most recently as Managing Director and Portfolio Manager. Prior to that, Ms. Rogers-Windsor served as a financial officer with Northwestern Mutual Life. Ms. Rogers-Windsor has over 38 years of experience across multiple segments of the financial services industry and has previously served on the boards of several non-profit organizations. Ms. Rogers-Windsor holds a BS in Accounting from Marquette University and is a Certified Public Accountant and a Chartered Financial Analyst charterholder.

37

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, 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

38

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

Cohen & Steers Privacy Policy—(Continued)

Who we are
Who is providing this notice?	Cohen & Steers Capital Management, Inc., Cohen & Steers Asia Limited, Cohen & Steers Japan, Limited, Cohen & Steers UK Limited, Cohen & Steers Ireland Limited, Cohen & Steers Securities, LLC, Cohen & Steers Private Funds and Cohen & Steers Open and Closed-End Funds (collectively, Cohen & Steers).
What we do
How does Cohen & Steers protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We restrict access to your information to those employees who need it to perform their jobs, and also require companies that provide services on our behalf to protect your information.
How does Cohen & Steers collect my personal information?	We collect your personal information, for example, when you: • Open an account or buy securities from us • Provide account information or give us your contact information • Make deposits or withdrawals from your account We also collect your personal information from other companies.
Why can’t I limit all sharing?	Federal law gives you the right to limit only: • sharing for affiliates’ everyday business purposes—information about your creditworthiness • affiliates from using your information to market to you • sharing for non-affiliates to market to you State law and individual companies may give you additional rights to limit sharing.
Definitions
Affiliates	Companies related by common ownership or control. They can be financial and nonfinancial companies. • Cohen & Steers does not share with affiliates.
Non-affiliates	Companies not related by common ownership or control. They can be financial and nonfinancial companies. • Cohen & Steers does not share with non-affiliates.
Joint marketing	A formal agreement between non-affiliated financial companies that together market financial products or services to you. • Cohen & Steers does not jointly market.

39

COHEN & STEERS PREFERRED SECURITIES AND INCOME SMA SHARES, INC.

OFFICERS AND DIRECTORS

Robert H. Steers

Director and Chairman

Joseph M. Harvey

Director and Vice President

Michael G. Clark

Director

George Grossman

Director

Dean A. Junkans

Director

Gerald J. Maginnis

Director

Jane F. Magpiong

Director

Daphne L. Richards

Director

Ramona Rogers-Windsor

Director

C. Edward Ward, Jr.

Director

Adam M. Derechin

President and Chief Executive Officer

James Giallanza

Chief Financial Officer

Dana A. DeVivo

Secretary and Chief Legal Officer

Albert Laskaj

Treasurer

Stephen Murphy

Chief Compliance Officer

and Vice President

William F. Scapell

Vice President

Elaine Zaharis-Nikas

Vice President

KEY INFORMATION

Investment Advisor and Administrator

Cohen & Steers Capital Management, Inc.

280 Park Avenue

New York, NY 10017

(212) 832-3232

Co-administrator and Custodian

State Street Bank and Trust Company

One Lincoln Street

Boston, MA 02111

Transfer Agent

DST Asset Manager Solutions, Inc.

P.O. Box 219953

Kansas City, MO 64121-9953

(800) 437-9912

Legal Counsel

Ropes & Gray LLP

1211 Avenue of the Americas

New York, NY 10036

Distributor

Cohen & Steers Securities, LLC

280 Park Avenue

New York, NY 10017

NASDAQ Symbol: PISHX

Website: cohenandsteers.com

This report is authorized for delivery only to shareholders of Cohen & Steers Preferred Securities and Income SMA Shares, 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.

40

eDelivery AVAILABLE

Stop traditional mail delivery;

receive your shareholder reports

and prospectus online.

Sign up at cohenandsteers.com

Cohen & Steers

Preferred

Securities and

Income SMA

Shares, Inc.

Semiannual Report April 30, 2021

Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website at www.cohenandsteers.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a Fund electronically anytime by contacting your program sponsor or, by signing up at www.cohenandsteers.com.

You may elect to receive all future reports in paper, free of charge, at any time. If you are a participant in a separately managed account program, you can contact your program sponsor or, you can call (800) 330-7348 to let the Fund know you wish to continue receiving paper copies of your shareholder reports.

PISHXSAR

Item 2. Code of Ethics.

The registrant has adopted an Amended and Restated Code of Ethics that applies to its Principal Executive Officer and Principal Financial Officer. The Code of Ethics was in effect during the reporting period. The registrant has not amended the Code of Ethics as described in Form N-CSR during the reporting period. The registrant has not granted any waiver, including an implicit waiver, from a provision of the Code of Ethics as described in Form N-CSR during the reporting period. A current copy of the Code of Ethics is available on the registrant’s website at https://www.cohenandsteers.com/assets/content/uploads/Code_of_Ethics_for_Principal_Executive_and_Principal_Financial_Officers_of_the_Funds.pdf. Upon request, a copy of the Code of Ethics can be obtained free of charge by calling 800-330-7348 or writing to the Secretary of the Registrant, 280 Park Avenue, 10th floor, New York, NY 10017.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.     

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments.

Included in Item 1 above.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

None.

Item 11. Controls and Procedures.

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(b) There were no changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.

(a)(1) Not applicable.

(a)(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.

(a)(4) Not applicable.

(b) Certifications of principal executive officer and principal 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 SMA SHARES, INC.

By:	/s/ Adam M. Derechin
	Name:   Adam M. Derechin Title:    Principal Executive Officer       (President and Chief Executive Officer)
Date:	July 7, 2021

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:    Principal Executive Officer          (President and Chief Executive Officer)
By:	/s/ James Giallanza
	Name:   James Giallanza Title:    Principal Financial Officer          (Chief Financial Officer)
Date: July 7, 2021