Cohen & Steers will launch the Cohen & Steers SICAV global preferred securities fund as part of its Luxembourg UCITS platform on 15 May 2017. Cohen & Steers has been investing in the preferred market for more than a decade; its U.S.-based Cohen & Steers preferred securities and income fund is the largest actively managed preferred securities fund in the world.
“The launch of the fund is the latest step in Cohen & Steers’ commitment to bringing our core competencies in alternative income and real assets to European and other investors worldwide,” said Robert Steers, the firm’s CEO. “With the outlook for fixed income uncertain, demand for alternative income strategies is rising and the Fund offers investors a distinctive solution to meet their portfolio needs.”
The Cohen & Steers SICAV global preferred securities fund offers a unique solution to both of these issues. “Based on expectations of rising rates globally, our focus is primarily on attractive income opportunities in securities with lower durations, which have been historically less sensitive to changes in interest rates. As we have often seen, high income and wider credit spreads can have a smoothing effect on total returns during periods of volatility,” said William Scapell, the fund’s lead manager.
The Cohen & Steers SICAV global preferred securities fund, a sub-fund of the firm’s existing Cohen & Steers Luxembourg Ucits platform, will seek to provide high current income and capital appreciation by investing in a global portfolio of retail exchange-listed and institutional over-the-counter preferred and debt securities.