SEC Form N-CSRS filed by Cohen & Steers Tax-Advantaged
$PTA
Trusts Except Educational Religious and Charitable
Finance
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number:
811-23493
Tax-Advantaged
Preferred Securities and Income Fund(Exact name of Registrant as specified in charter)
1166 Avenue of the Americas, 30th Floor, New York, NY 10036
(Address of principal executive offices) (Zip code)
Dana A. DeVivo
Cohen & Steers Capital Management, Inc.
1166 Avenue of the Americas, 30th Floor
New York, New York 10036
(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, 2024
Item 1. Reports to Stockholders.
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INCOME
FUND
To Our Shareholders:
We would like to share with you our report for the six months ended April 30, 2024. The total returns for Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund (the Fund) and its comparative benchmarks were:
Six Months Ended April 30, 2024 |
||||
Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund at Net Asset Value (a ) |
15.00 |
% | ||
Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund at Market Value (a) |
15.13 |
% | ||
ICE BofA 7% Constrained DRD Eligible Preferred Securities Index (b) |
13.41 |
% | ||
Blended Benchmark—50% ICE BofA 7% Constrained DRD Eligible Preferred Securities Index/35% ICE BofA U.S. IG Institutional Capital Securities Index/15% Bloomberg Developed Market USD Contingent Capital Index (b) |
12.13 |
% | ||
Bloomberg U.S. Aggregate Bond Index (b) |
4.97 |
% | ||
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 sold, 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 prices obtained under the Fund’s dividend reinvestment plan. Index performance does not reflect the deduction of any fees, taxes or expenses. An investor cannot invest directly in an index. Performance figures for periods shorter than one year are not annualized.
The Fund expects to make regular monthly distributions at a level rate (the Policy). Distributions paid by the Fund are subject to recharacterization for tax purposes and are taxable up to the amount of the Fund’s investment company taxable income and net realized gains. As a result of the Policy, the Fund may pay distributions in excess of the Fund’s investment company taxable income and net realized gains. This excess would be a return of capital distributed from the Fund’s assets. Distributions of capital decrease the Fund’s total assets and, therefore, could have the effect of increasing the Fund’s expense ratio. In addition, in order to make these distributions, the Fund may have to sell portfolio securities at a less than opportune time.
(a ) |
As a closed-end investment company, the price of the Fund’s exchange-traded shares will be set by market forces and can deviate from the net asset value (NAV) per share of the Fund. |
(b ) |
ICE BofA 7% Constrained DRD Eligible Preferred Securities Index contains all securities in the ICE BofA Fixed Rate Preferred Securities Index that are DRD (dividends received deduction) eligible, but caps issuer exposure at 7%. The ICE BofA U.S. IG Institutional Capital Securities Index tracks the performance of U.S. dollar denominated investment grade hybrid capital corporate and preferred securities publicly issued in the U.S. domestic market. The Bloomberg Developed Market USD Contingent Capital Index includes hybrid capital securities in developed markets with explicit equity conversion or write down loss absorption mechanisms that are based on an issuer’s regulatory capital ratio or other explicit solvency-based triggers. The Bloomberg U.S. Aggregate Bond Index is a broad market measure of the U.S. dollar-denominated investment-grade fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities. |
The comparative indexes are not adjusted to reflect expenses or other fees that the U.S. Securities and Exchange Commission (SEC) requires to be reflected in the Fund’s performance. Index performance does not reflect the deduction of any fees, taxes or expenses. An investor cannot invest directly in an index. The Fund’s performance assumes dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan. |
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Market Review
Preferred securities had a strong total return in the six months ended April 30, 2024. Concerns of recession receded as the world’s major economies remained healthy during this period, driven by solid consumer spending. Headline U.S. inflation, which bottomed in mid-2023, remained stubbornly above 3%—and well above the Federal Reserve’s 2% target. However, interest rates, while volatile, ended the period modestly lower as investors debated the timing and magnitude of central bank interest rate cuts.
Credit spreads narrowed markedly, given the strength of the economy and investors’ search for income. Preferreds also benefited from strong call activity and limited new supply, which bolstered demand for existing issues. Consequently, preferred securities considerably outperformed other areas of fixed income.
Fund Performance
The Fund had a positive total return in the period and outperformed its blended benchmark on both a market price and net asset value basis.
The banking sector continued to rebound from the well-publicized bank failures that occurred in the first quarter of 2023, with concerns of contagion receding as fundamentals in the broader banking system remained healthy and resilient. Security selection in the banking sector, which accounted for roughly half of the portfolio’s assets, detracted from relative returns. This was partly due to underweight investments in certain well-performing floating-rate securities.
Insurance underperformed other preferred sectors despite solid underlying industry fundamentals. Property & casualty insurance companies continued to enjoy premium growth given the health of the economy, and life insurers benefited from rising interest rates. The sector’s underperformance stemmed partly from modest returns generated by very high-quality Japan-based insurers. The Fund’s security selection and underweight allocation to insurance aided relative performance. Contributors included out-of-index investments in a pair of well-performing, deeply discounted issues from an annuity provider and having no investment in certain low-coupon securities from Japanese companies.
Security selection in the energy and pipeline sectors further contributed to relative returns. The Fund held overweight or out-of-benchmark investments in certain securities from companies that, in addition to rising energy prices, benefited from business transactions that were viewed positively from a credit perspective.
The capital-intensive utilities sector benefited from healthy financials and a positive growth outlook partly supported by expected long-term demand for power for artificial intelligence applications. The Fund’s security selection in utilities preferreds detracted from relative performance due to out-of-index positions in several relatively defensive securities that lagged in the rally.
The portfolio’s security selection in the brokerage sector also detracted from relative performance, partly due to underweight or non-investments in well-performing issues from Morgan Stanley that we viewed as being richly valued.
Impact of Leverage on Fund Performance
The Fund employs leverage as part of an effort to enhance yield. Leverage can increase total return in rising markets, just as it can have the opposite effect in declining markets. The leverage significantly contributed to the Fund’s performance for the six months ended April 30, 2024.
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Impact of Derivatives on Fund Performance
The Fund used derivatives in the form of forward foreign currency exchange contracts to passively manage currency risk on certain Fund positions denominated in foreign currencies. The currency exchange contracts did not have a material impact on the Fund’s total return for the six months ended April 30, 2024.
In connection with its use of leverage, the Fund pays interest on a portion of its borrowings based on a floating rate under the terms of its credit agreement. To reduce the impact that an increase in interest rates could have on the performance of the Fund with respect to these borrowings, the Fund used interest rate swaps to exchange a significant portion of the floating rate for a fixed rate. In addition, the Fund used total return swap contracts to manage credit risk. The Fund’s use of interest rate swaps and total return swaps did not have a material impact on the Fund’s total return for the six months ended April 30, 2024.
Sincerely,
 |
 | |
W ILLIAM F. SCAPELL Portfolio Manager |
E LAINE ZAHARIS -NIKAS Portfolio Manager |
 |
 | |
J ERRY DOROST Portfolio Manager |
R OBERT KASTOFF 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.
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Performance Review (Unaudited)
Average Annual Total Returns—For Periods Ended April 30, 2024
1 Year |
5 Years |
10 Years |
Since Inception (a) |
|||||||||||||
Fund at NAV |
16.37 |
% |
— |
— |
1.69 |
% | ||||||||||
Fund at Market Value |
18.32 |
% |
— |
— |
-0.85 |
% | ||||||||||
The performance data quoted represent past performance. Past performance is no guarantee of future results. The investment return will vary and the principal value of an investment will fluctuate and shares, if sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance results reflect the effect of leverage from utilization of borrowings under a credit agreement. 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 prices obtained under the Fund’s dividend reinvestment plan. The performance table does not reflect the deduction of brokerage commissions or taxes that a shareholder would pay on Fund distributions or the sale of Fund shares.
(a) |
Commencement of investment operations was October 28, 2020. |
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Our Leverage Strategy
(Unaudited)
Our current leverage strategy utilizes borrowings up to the maximum permitted by the Investment Company Act of 1940 to provide additional capital for the Fund, with an objective of increasing net income available for shareholders. As of April 30, 2024 leverage represented 35% of the Fund’s managed assets.
Through a combination of variable rate financing and interest rate swaps, the Fund has locked in interest rates on a significant portion of this additional capital through 2027 (where we effectively reduce our variable rate obligation and lock in our fixed rate obligation over various terms). Locking in a significant portion of our leveraging costs is designed to protect the dividend-paying ability of the Fund. The use of leverage increases the volatility of the Fund’s NAV in both up and down markets. However, we believe that locking in portions of the Fund’s leveraging costs for the various terms partially protects the Fund’s expenses from an increase in short-term interest rates.
Leverage Facts
(a)(b
)
Leverage (as a % of managed assets) |
35% | |
% Variable Rate Financing |
3% | |
Variable Rate |
6.0% | |
% Fixed Rate Financing (c ) |
97% | |
Weighted Average Rate on Fixed Financing |
1.2% | |
Weighted Average Term on Fixed Financing |
1.9 years |
The Fund seeks to enhance its dividend yield through leverage. The use of leverage is a speculative technique and there are special risks and costs associated with leverage. The NAV of the Fund’s shares may be reduced by the issuance and ongoing costs of leverage. So long as the Fund is able to invest in securities that produce an investment yield that is greater than the total cost of leverage, the leverage strategy will produce higher current net investment income for shareholders. On the other hand, to the extent that the total cost of leverage exceeds the incremental income gained from employing such leverage, shareholders would realize lower net investment income. In addition to the impact on net income, the use of leverage will have an effect of magnifying capital appreciation or depreciation for shareholders. Specifically, in an up market, leverage will typically generate greater capital appreciation than if the Fund were not employing leverage. Conversely, in down markets, the use of leverage will generally result in greater capital depreciation than if the Fund had been unlevered. To the extent that the Fund is required or elects to reduce its leverage, the Fund may need to liquidate investments, including under adverse economic conditions which may result in capital losses potentially reducing returns to shareholders. There can be no assurance that a leveraging strategy will be successful during any period in which it is employed.
(a) |
Data as of April 30, 2024. Information is subject to change. |
(b) |
See Note 7 in Notes to Financial Statements. |
(c) |
Represents fixed payer interest rate swap contracts on variable rate borrowing. |
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April 30, 2024
Top Ten Holdings
(a)
(Unaudited)
Security |
Value |
% of Managed Assets |
||||||
Wells Fargo & Co., 7.625% |
$ |
38,525,140 |
2.2 |
|||||
Stichting AK Rabobank Certificaten, 6.50% (Netherlands) |
34,604,344 |
2.0 |
||||||
JPMorgan Chase & Co., 6.875%, Series NN |
34,229,794 |
2.0 |
||||||
Charles Schwab Corp., 5.375%, Series G |
31,520,816 |
1.8 |
||||||
Wells Fargo & Co., 3.90%, Series BB |
27,367,675 |
1.6 |
||||||
Citigroup, Inc., 7.625%, Series AA |
26,891,672 |
1.6 |
||||||
Goldman Sachs Group, Inc., 7.50%, Series X |
26,356,056 |
1.5 |
||||||
Charles Schwab Corp., 4.00%, Series I |
24,632,982 |
1.4 |
||||||
Bank of America Corp., 6.10%, Series AA |
23,131,964 |
1.4 |
||||||
BNP Paribas SA, 7.75% (France) |
20,824,808 |
1.2 |
||||||
(a) |
Top ten holdings (excluding short-term investments and derivative instruments) are determined on the basis of the value of individual securities held. The Fund may also hold positions in other securities issued by the companies listed above. See the Schedule of Investments for additional details on such other positions. |
Sector Breakdown
(b)
(Based on Managed Assets)
(Unaudited)
(b) |
Excludes derivative instruments. |
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SCHEDULE OF INVESTMENTS
April 30, 2024 (Unaudited)
Shares |
Value |
|||||||||||
P REFERRED SECURITIES —EXCHANGE -TRADED |
27.1% |
|||||||||||
B ANKING |
6.6% |
|||||||||||
Federal Agricultural Mortgage Corp., 4.875%, Series G (a) |
410,836 |
$ |
7,949,677 |
|||||||||
First Horizon Corp., 6.50% (a)(b) |
226,999 |
5,379,876 |
||||||||||
Morgan Stanley, 4.25%, Series O (a)(b) |
74,599 |
1,385,303 |
||||||||||
Morgan Stanley, 5.85% to 4/15/27, Series K (a)(b) |
294,081 |
7,046,181 |
||||||||||
Morgan Stanley, 6.375% to 10/15/24, Series I (a)(b) |
289,449 |
7,213,069 |
||||||||||
Morgan Stanley, 6.875% to 7/15/24, Series F (a)(b) |
680,397 |
17,118,789 |
||||||||||
Morgan Stanley, 7.125% to 7/15/24, Series E (a)(b) |
350,000 |
8,830,500 |
||||||||||
Regions Financial Corp., 5.70% to 5/15/29, Series C (a)(b)(c) |
164,750 |
3,601,435 |
||||||||||
Texas Capital Bancshares, Inc., 5.75%, Series B (a)(b) |
103,308 |
1,970,084 |
||||||||||
Wells Fargo & Co., 4.375%, Series CC (a)(b) |
117,864 |
2,245,309 |
||||||||||
Wells Fargo & Co., 4.70%, Series AA (a)(b) |
288,351 |
5,813,156 |
||||||||||
Wells Fargo & Co., 4.75%, Series Z (a)(b) |
268,039 |
5,459,954 |
||||||||||
74,013,333 |
||||||||||||
C ONSUMER STAPLE PRODUCTS |
0.7% |
|||||||||||
CHS, Inc., 7.50%, Series 4 (a) |
299,435 |
7,680,508 |
||||||||||
F INANCIAL SERVICES |
3.0% |
|||||||||||
Affiliated Managers Group, Inc., 6.75%, due 3/30/64 (b)(d) |
176,252 |
4,512,051 |
||||||||||
Apollo Global Management, Inc., 7.625% to 9/15/28, due 9/15/53 (b)(c) |
147,108 |
3,886,593 |
||||||||||
Brookfield Oaktree Holdings LLC, 6.55%, Series B (a)(b) |
633,858 |
13,627,947 |
||||||||||
Brookfield Oaktree Holdings LLC, 6.625%, Series A (a)(b) |
214,812 |
4,682,902 |
||||||||||
TPG Operating Group II LP, 6.95%, due 3/15/64 (b)(d) |
266,478 |
6,872,468 |
||||||||||
33,581,961 |
||||||||||||
I NDUSTRIAL SERVICES |
1.4% |
|||||||||||
WESCO International, Inc., 10.625% to 6/22/25, Series A (a)(c) |
600,807 |
15,855,297 |
||||||||||
I NSURANCE |
8.7% |
|||||||||||
Allstate Corp., 7.375%, Series J (a)(b) |
174,600 |
4,658,328 |
||||||||||
Arch Capital Group Ltd., 4.55%, Series G (a)(b) |
172,499 |
3,329,231 |
||||||||||
Arch Capital Group Ltd., 5.45%, Series F (a)(b) |
351,086 |
7,871,348 |
||||||||||
See accompanying notes to financial statements.
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SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2024 (Unaudited)
Shares |
Value |
|||||||||||
Assurant, Inc., 5.25%, due 1/15/61 (b) |
75,306 |
$ |
1,555,069 |
|||||||||
Athene Holding Ltd., 4.875%, Series D (a)(b) |
243,569 |
4,311,171 |
||||||||||
Athene Holding Ltd., 5.625%, Series B (a)(b) |
911 |
18,839 |
||||||||||
Athene Holding Ltd., 6.35% to 6/30/29, Series A (a)(b)(c) |
439,968 |
10,343,648 |
||||||||||
Athene Holding Ltd., 6.375% to 6/30/25, Series C (a)(b)(c) |
276,112 |
6,911,083 |
||||||||||
Athene Holding Ltd., 7.25% to 3/30/29, due 3/30/64 (b)(c)(d) |
247,750 |
6,171,453 |
||||||||||
Athene Holding Ltd., 7.75% to 12/30/27, Series E (a)(b)(c) |
337,144 |
8,971,402 |
||||||||||
Brighthouse Financial, Inc., 5.375%, Series C (a)(b) |
154,477 |
2,843,922 |
||||||||||
Enstar Group Ltd., 7.00% to 9/1/28, Series D (a)(b)(c) |
332,363 |
8,475,256 |
||||||||||
Equitable Holdings, Inc., 4.30%, Series C (a)(b) |
98,173 |
1,725,881 |
||||||||||
Equitable Holdings, Inc., 5.25%, Series A (a)(b) |
286,202 |
6,239,204 |
||||||||||
F&G Annuities & Life, Inc., Senior Debt, 7.95%, due 12/15/53 (b) |
333,885 |
8,681,010 |
||||||||||
Lincoln National Corp., 9.00%, Series D (a)(b) |
321,052 |
8,652,351 |
||||||||||
MetLife, Inc., 5.625%, Series E (a)(b) |
96,332 |
2,260,912 |
||||||||||
Reinsurance Group of America, Inc., 7.125% to 10/15/27, due 10/15/52 (b)(c) |
96,288 |
2,521,783 |
||||||||||
RenaissanceRe Holdings Ltd., 4.20%, Series G (Bermuda) (a) |
103,152 |
1,800,002 |
||||||||||
97,341,893 |
||||||||||||
P IPELINES |
0.6% |
|||||||||||
Enbridge, Inc., 2.983% to 9/1/25, Series 15 (Canada) (a)(b)(c) |
300,000 |
3,687,212 |
||||||||||
TC Energy Corp., 3.762% to 10/30/24, Series 9 (Canada) (a)(b)(c) |
200,000 |
2,601,968 |
||||||||||
6,289,180 |
||||||||||||
R EAL ESTATE |
0.9% |
|||||||||||
Chatham Lodging Trust, 6.625%, Series A (a) |
85,000 |
1,733,150 |
||||||||||
DigitalBridge Group, Inc., 7.125%, Series H (a) |
206,801 |
4,628,206 |
||||||||||
DigitalBridge Group, Inc., 7.125%, Series J (a) |
167,076 |
3,792,625 |
||||||||||
10,153,981 |
||||||||||||
See accompanying notes to financial statements.
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SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2024 (Unaudited)
Shares |
Value |
|||||||||||
T ELECOMMUNICATIONS |
0.9% |
|||||||||||
AT&T, Inc., 4.75%, Series C (a)(b) |
169,358 |
$ |
3,326,191 |
|||||||||
AT&T, Inc., 5.00%, Series A (a)(b) |
145,001 |
3,008,771 |
||||||||||
U.S. Cellular Corp., Senior Debt, 5.50%, due 3/1/70 (b) |
20,905 |
371,482 |
||||||||||
U.S. Cellular Corp., Senior Debt, 5.50%, due 6/1/70 (b) |
47,855 |
844,641 |
||||||||||
U.S. Cellular Corp., Senior Debt, 6.25%, due 9/1/69 (b) |
134,648 |
2,593,320 |
||||||||||
10,144,405 |
||||||||||||
U TILITIES |
4.3% |
|||||||||||
Algonquin Power & Utilities Corp., 6.20% to 7/1/24, due 7/1/79, Series 19-A (Canada)(b)(c) |
140,000 |
3,493,000 |
||||||||||
BIP Bermuda Holdings I Ltd., 5.125% (Canada) (a)(b) |
47,070 |
835,022 |
||||||||||
Brookfield BRP Holdings Canada, Inc., 4.625% (Canada) (a)(b) |
208,034 |
3,234,929 |
||||||||||
Brookfield BRP Holdings Canada, Inc., 4.875% (Canada) (a)(b) |
168,056 |
2,714,104 |
||||||||||
Brookfield Infrastructure Finance ULC, 5.00%, due 5/24/81 (Canada) (b) |
214,600 |
3,656,784 |
||||||||||
CMS Energy Corp., 5.875%, due 10/15/78 (b) |
120,000 |
2,889,600 |
||||||||||
SCE Trust V, 5.45% to 3/15/26, Series K (TruPS) (a)(b)(c) |
453,764 |
11,144,444 |
||||||||||
SCE Trust VI, 5.00% (TruPS) (a)(b) |
394,659 |
7,822,141 |
||||||||||
SCE Trust VII, 7.50%, Series M (TruPS) (a)(b) |
466,136 |
12,166,150 |
||||||||||
47,956,174 |
||||||||||||
T OTAL PREFERRED SECURITIES —EXCHANGE -TRADED (Identified cost—$330,348,764) |
303,016,732 |
|||||||||||
Principal Amount* |
||||||||||||
P REFERRED SECURITIES —OVER - THE -C OUNTER |
123.3% |
|||||||||||
B ANKING |
77.3% |
|||||||||||
Abanca Corp. Bancaria SA, 6.00% to 1/20/26 (Spain) (a)(c)(e)(f) |
EUR |
4,000,000 |
4,124,854 |
|||||||||
ABN AMRO Bank NV, 6.875% to 9/22/31 (Netherlands) (a)(c)(e)(f) |
EUR |
3,600,000 |
3,899,551 |
|||||||||
See accompanying notes to financial statements.
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SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2024 (Unaudited)
Principal Amount* |
Value |
|||||||||
AIB Group PLC, 7.125% to 10/30/29 (Ireland) (a)(c)(e)(f) |
EUR |
6,000,000 |
$ |
6,437,761 |
||||||
Banco Bilbao Vizcaya Argentaria SA, 9.375% to 3/19/29 (Spain) (a)(c)(e) |
5,900,000 |
6,211,018 |
||||||||
Banco de Sabadell SA, 5.75% to 3/15/26 (Spain) (a)(c)(e)(f) |
EUR |
1,000,000 |
1,041,881 |
|||||||
Banco de Sabadell SA, 9.375% to 7/18/28 (Spain) (a)(c)(e)(f) |
EUR |
4,000,000 |
4,683,260 |
|||||||
Banco Santander SA, 9.625% to 11/21/28 (Spain) (a)(c)(e) |
4,000,000 |
4,202,464 |
||||||||
Banco Santander SA, 9.625% to 5/21/33 (Spain) (a)(c)(e) |
9,000,000 |
9,630,810 |
||||||||
Bank of America Corp., 5.875% to 3/15/28, Series FF (a)(b)(c) |
12,042,000 |
11,564,719 |
||||||||
Bank of America Corp., 6.10% to 3/17/25, Series AA (a)(b)(c) |
23,115,000 |
23,131,964 |
||||||||
Bank of America Corp., 6.125% to 4/27/27, Series TT (a)(b)(c) |
1,700,000 |
1,684,144 |
||||||||
Bank of America Corp., 6.25% to 9/5/24, Series X (a)(b)(c) |
8,320,000 |
8,313,738 |
||||||||
Bank of America Corp., 6.30% to 3/10/26, Series DD (a)(b)(c) |
3,318,000 |
3,315,856 |
||||||||
Bank of America Corp., 6.50% to 10/23/24, Series Z (a)(b)(c) |
5,567,000 |
5,589,006 |
||||||||
Bank of Ireland Group PLC, 7.50% to 5/19/25 (Ireland) (a)(c)(e)(f) |
EUR |
7,675,000 |
8,335,503 |
|||||||
Bank of Nova Scotia, 8.00% to 1/27/29, due 1/27/84 (Canada) (b)(c) |
4,200,000 |
4,232,798 |
||||||||
Bank of Nova Scotia, 8.625% to 10/27/27, due 10/27/82 (Canada) (b)(c) |
10,250,000 |
10,578,410 |
||||||||
Barclays Bank PLC, 6.278% to 12/15/34, Series 1 (United Kingdom) (a)(c) |
4,220,000 |
4,156,556 |
||||||||
Barclays PLC, 6.125% to 12/15/25 (United Kingdom) (a)(c)(e) |
1,200,000 |
1,154,995 |
||||||||
Barclays PLC, 7.125% to 6/15/25 (United Kingdom) (a)(c)(e) |
GBP |
800,000 |
986,520 |
|||||||
Barclays PLC, 8.00% to 3/15/29 (United Kingdom) (a)(c)(e) |
2,700,000 |
2,661,806 |
||||||||
See accompanying notes to financial statements.
10
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2024 (Unaudited)
Principal Amount* |
Value |
|||||||||
Barclays PLC, 8.875% to 9/15/27 (United Kingdom) (a)(c)(e)(f) |
GBP |
6,400,000 |
$ |
8,086,641 |
||||||
Barclays PLC, 9.625% to 12/15/29 (United Kingdom) (a)(b)(c)(e) |
11,700,000 |
12,257,259 |
||||||||
BNP Paribas SA, 7.375% to 8/19/25 (France) (a)(c)(e)(g) |
3,200,000 |
3,206,124 |
||||||||
BNP Paribas SA, 7.75% to 8/16/29 (France) (a)(c)(e)(g) |
20,600,000 |
20,824,808 |
||||||||
BNP Paribas SA, 8.00% to 8/22/31 (France) (a)(b)(c)(e)(g) |
1,400,000 |
1,394,717 |
||||||||
BNP Paribas SA, 8.50% to 8/14/28 (France) (a)(c)(e)(g) |
13,600,000 |
14,094,578 |
||||||||
BNP Paribas SA, 9.25% to 11/17/27 (France) (a)(c)(e)(g) |
8,800,000 |
9,344,579 |
||||||||
CaixaBank SA, 7.50% to 1/16/30 (Spain) (a)(c)(e)(f) |
EUR |
1,800,000 |
1,995,583 |
|||||||
CaixaBank SA, 8.25% to 3/13/29 (Spain) (a)(c)(e)(f) |
EUR |
8,400,000 |
9,508,136 |
|||||||
Charles Schwab Corp., 4.00% to 6/1/26, Series I (a)(b)(c) |
26,699,000 |
24,632,982 |
||||||||
Charles Schwab Corp., 4.00% to 12/1/30, Series H (a)(b)(c) |
10,317,000 |
8,409,626 |
||||||||
Charles Schwab Corp., 5.00% to 6/1/27, Series K (a)(b)(c) |
1,973,000 |
1,848,693 |
||||||||
Charles Schwab Corp., 5.375% to 6/1/25, Series G (a)(b)(c) |
31,795,000 |
31,520,816 |
||||||||
Citigroup, Inc., 3.875% to 2/18/26, Series X (a)(c) |
4,370,000 |
4,112,974 |
||||||||
Citigroup, Inc., 5.95% to 5/15/25, Series P (a)(b)(c) |
15,756,000 |
15,697,355 |
||||||||
Citigroup, Inc., 6.25% to 8/15/26, Series T (a)(c) |
10,030,000 |
10,009,528 |
||||||||
Citigroup, Inc., 6.30% to 8/15/24, Series M (a)(c) |
2,020,000 |
2,026,658 |
||||||||
Citigroup, Inc., 7.625% to 11/15/28, Series AA (a)(c) |
25,995,000 |
26,891,672 |
||||||||
Citizens Financial Group, Inc., 5.65% to 10/6/25, Series F (a)(c) |
7,053,000 |
6,910,052 |
||||||||
CoBank ACB, 6.45% to 10/1/27, Series K (a)(b)(c) |
6,590,000 |
6,523,425 |
||||||||
Commerzbank AG, 7.00% to 4/9/25 (Germany) (a)(b)(c)(e)(f) |
2,800,000 |
2,758,773 |
||||||||
Credit Agricole SA, 4.75% to 3/23/29 (France) (a)(b)(c)(e)(g) |
600,000 |
511,340 |
||||||||
Credit Agricole SA, 6.50% to 9/23/29, Series EMTN (France) (a)(b)(c)(e)(f) |
EUR |
5,200,000 |
5,605,492 |
|||||||
See accompanying notes to financial statements.
11
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2024 (Unaudited)
Principal Amount* |
Value |
|||||||||
Credit Agricole SA, 7.25% to 9/23/28, Series EMTN (France) (a)(b)(c)(e)(f) |
EUR |
5,600,000 |
$ |
6,259,153 |
||||||
Credit Agricole SA, 8.125% to 12/23/25 (France) (a)(b)(c)(e)(g) |
3,260,000 |
3,309,193 |
||||||||
Credit Suisse Group AG, 6.375% to 8/21/26, Claim (Switzerland) (a)(d)(e)(g)(h) |
2,200,000 |
253,000 |
||||||||
Credit Suisse Group AG, 7.50%, Claim (Switzerland) (a)(d)(e)(g)(h) |
7,600,000 |
874,000 |
||||||||
Danske Bank AS, 7.00% to 6/26/25 (Denmark) (a)(b)(c)(e)(f) |
1,800,000 |
1,784,396 |
||||||||
Deutsche Bank AG, 6.00% to 10/30/25, Series 2020 (Germany) (a)(c)(e) |
1,800,000 |
1,679,124 |
||||||||
Deutsche Bank AG, 7.50% to 4/30/25 (Germany) (a)(c)(e) |
2,600,000 |
2,542,397 |
||||||||
Deutsche Bank AG, 10.00% to 12/1/27 (Germany) (a)(c)(e)(f) |
EUR |
10,000,000 |
11,458,532 |
|||||||
Farm Credit Bank of Texas, 9.601% (3 Month USD Term SOFR + 4.01%) (a)(g)(i) |
7,000 |
† |
700,000 |
|||||||
Goldman Sachs Group, Inc., 3.65% to 8/10/26, Series U (a)(c) |
3,284,000 |
2,994,372 |
||||||||
Goldman Sachs Group, Inc., 7.50% to 2/10/29, Series W (a)(c) |
17,139,000 |
17,779,553 |
||||||||
Goldman Sachs Group, Inc., 7.50% to 5/10/29, Series X (a)(c) |
26,008,000 |
26,356,056 |
||||||||
HSBC Capital Funding Dollar 1 LP, 10.176% to 6/30/30, Series 2 (United Kingdom) (a)(c)(g) |
13,735,000 |
16,632,481 |
||||||||
HSBC Holdings PLC, 6.00% to 5/22/27 (United Kingdom) (a)(b)(c)(e) |
2,200,000 |
2,098,528 |
||||||||
HSBC Holdings PLC, 8.00% to 3/7/28 (United Kingdom) (a)(b)(c)(e) |
7,400,000 |
7,656,240 |
||||||||
Huntington Bancshares, Inc., 4.45% to 10/15/27, Series G (a)(c) |
1,820,000 |
1,617,088 |
||||||||
Huntington Bancshares, Inc., 5.625% to 7/15/30, Series F (a)(c) |
7,141,000 |
6,413,454 |
||||||||
ING Groep NV, 4.875% to 5/16/29 (Netherlands) (a)(b)(c)(e)(f) |
1,200,000 |
1,006,500 |
||||||||
ING Groep NV, 5.75% to 11/16/26 (Netherlands) (a)(c)(e) |
2,200,000 |
2,078,250 |
||||||||
See accompanying notes to financial statements.
12
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2024 (Unaudited)
Principal Amount* |
Value |
|||||||||
ING Groep NV, 7.50% to 5/16/28 (Netherlands) (a)(b)(c)(e)(f) |
5,000,000 |
$ |
4,912,500 |
|||||||
ING Groep NV, 8.00% to 5/16/30 (Netherlands) (a)(b)(c)(e)(f) |
4,200,000 |
4,195,380 |
||||||||
Intesa Sanpaolo SpA, 7.70% to 9/17/25 (Italy) (a)(c)(e)(g) |
8,000,000 |
7,949,754 |
||||||||
Intesa Sanpaolo SpA, 9.125% to 9/7/29 (Italy) (a)(c)(e)(f) |
EUR |
5,400,000 |
6,400,534 |
|||||||
JPMorgan Chase & Co., 6.10% to 10/1/24, Series X (a)(b)(c) |
3,400,000 |
3,409,561 |
||||||||
JPMorgan Chase & Co., 6.875% to 6/1/29, Series NN (a)(b)(c) |
33,323,000 |
34,229,794 |
||||||||
JPMorgan Chase & Co., 8.868% (3 Month USD Term SOFR + 3.562%), Series R (a)(b)(i) |
2,331,000 |
2,331,000 |
||||||||
JPMorgan Chase & Co., 9.348% (3 Month USD Term SOFR + 4.042%), Series S (a)(b)(i) |
20,595,000 |
20,595,000 |
||||||||
Lloyds Banking Group PLC, 7.50% to 9/27/25 (United Kingdom) (a)(c)(e) |
5,800,000 |
5,755,911 |
||||||||
Lloyds Banking Group PLC, 8.00% to 9/27/29 (United Kingdom) (a)(c)(e) |
2,300,000 |
2,277,133 |
||||||||
Lloyds Banking Group PLC, 8.50% to 9/27/27 (United Kingdom) (a)(c)(e) |
GBP |
2,000,000 |
2,524,141 |
|||||||
Nationwide Building Society, 10.25% (United Kingdom) |
GBP |
11,560,000 |
19,247,696 |
|||||||
NatWest Group PLC, 8.00% to 8/10/25 (United Kingdom) (a)(c)(e) |
9,400,000 |
9,422,259 |
||||||||
PNC Financial Services Group, Inc., 6.00% to 5/15/27, Series U (a)(b)(c) |
4,081,000 |
3,935,700 |
||||||||
PNC Financial Services Group, Inc., 6.20% to 9/15/27, Series V (a)(b)(c) |
13,976,000 |
13,735,674 |
||||||||
PNC Financial Services Group, Inc., 6.25% to 3/15/30, Series W (a)(b)(c) |
20,238,000 |
19,076,379 |
||||||||
Regions Financial Corp., 5.75% to 6/15/25, Series D (a)(c) |
10,429,000 |
10,248,140 |
||||||||
Skandinaviska Enskilda Banken AB, 6.875% to 6/30/27 (Sweden) (a)(b)(c)(e)(f) |
1,600,000 |
1,561,000 |
||||||||
Societe Generale SA, 6.75% to 4/6/28 (France) (a)(c)(e)(g) |
2,400,000 |
2,145,893 |
||||||||
See accompanying notes to financial statements.
13
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2024 (Unaudited)
Principal Amount* |
Value |
|||||||||||
Societe Generale SA, 7.875% to 1/18/29, Series EMTN (France) (a)(c)(e)(f) |
EUR |
2,900,000 |
$ |
3,193,144 |
||||||||
Societe Generale SA, 8.00% to 9/29/25 (France) (a)(c)(e)(g) |
3,200,000 |
3,209,779 |
||||||||||
Societe Generale SA, 9.375% to 11/22/27 (France) (a)(c)(e)(g) |
8,200,000 |
8,366,575 |
||||||||||
Societe Generale SA, 10.00% to 11/14/28 (France) (a)(c)(e)(g) |
7,400,000 |
7,771,613 |
||||||||||
State Street Corp., 6.70% to 3/15/29, Series I (a)(c) |
15,730,000 |
15,782,559 |
||||||||||
Stichting AK Rabobank Certificaten, 6.50% (Netherlands) (a)(f) |
EUR |
30,500,000 |
34,604,344 |
|||||||||
Swedbank AB, 7.625% to 3/17/28 (Sweden) (a)(b)(c)(e)(f) |
1,800,000 |
1,768,001 |
||||||||||
Swedbank AB, 7.75% to 3/17/30 (Sweden) (a)(c)(e)(f) |
4,200,000 |
4,126,706 |
||||||||||
Toronto-Dominion Bank, 8.125% to 10/31/27, due 10/31/82 (Canada) (b)(c) |
13,775,000 |
14,199,311 |
||||||||||
Truist Financial Corp., 4.95% to 9/1/25, Series P (a)(b)(c) |
8,735,000 |
8,509,985 |
||||||||||
Truist Financial Corp., 5.10% to 3/1/30, Series Q (a)(b)(c) |
11,568,000 |
10,508,009 |
||||||||||
Truist Financial Corp., 5.125% to 12/15/27, Series M (a)(b)(c) |
2,239,000 |
2,010,601 |
||||||||||
UBS Group AG, 6.875% to 8/7/25 (Switzerland) (a)(c)(e)(f) |
10,100,000 |
9,950,439 |
||||||||||
UBS Group AG, 9.25% to 11/13/28 (Switzerland) (a)(c)(e)(g) |
9,800,000 |
10,483,344 |
||||||||||
UBS Group AG, 9.25% to 11/13/33 (Switzerland) (a)(c)(e)(g) |
12,600,000 |
13,859,836 |
||||||||||
U.S. Bancorp, 3.70% to 1/15/27, Series N (a)(b)(c) |
5,452,000 |
4,705,509 |
||||||||||
U.S. Bancorp, 5.30% to 4/15/27, Series J (a)(b)(c) |
6,162,000 |
5,791,390 |
||||||||||
Wells Fargo & Co., 3.90% to 3/15/26, Series BB (a)(c) |
28,835,000 |
27,367,675 |
||||||||||
Wells Fargo & Co., 5.90% to 6/15/24, Series S (a)(c) |
16,000 |
15,972 |
||||||||||
Wells Fargo & Co., 7.625% to 9/15/28 (a)(c) |
36,756,000 |
38,525,140 |
||||||||||
866,305,123 |
||||||||||||
See accompanying notes to financial statements.
14
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2024 (Unaudited)
Principal Amount* |
Value |
|||||||||||
C ONSUMER DISCRETIONARY PRODUCTS |
0.2% |
|||||||||||
Volkswagen International Finance NV, 7.50% to 9/6/28, Series PNC5 (Germany) (a)(b)(c)(f) |
EUR |
1,900,000 |
$ |
2,186,621 |
||||||||
E NERGY |
2.2% |
|||||||||||
BP Capital Markets PLC, 3.625% to 3/22/29 (a)(b)(c)(f) |
EUR |
8,000,000 |
8,132,965 |
|||||||||
BP Capital Markets PLC, 4.875% to 3/22/30 (a)(b)(c) |
5,492,000 |
5,146,940 |
||||||||||
BP Capital Markets PLC, 6.45% to 12/1/33 (a)(b)(c) |
10,950,000 |
11,074,620 |
||||||||||
24,354,525 |
||||||||||||
F INANCIAL SERVICES |
2.7% |
|||||||||||
American Express Co., 3.55% to 9/15/26, Series D (a)(c) |
3,381,000 |
3,093,231 |
||||||||||
Apollo Management Holdings LP, 4.95% to 12/17/24, due 1/14/50 (b)(c)(g) |
5,000,000 |
4,804,525 |
||||||||||
ARES Finance Co. III LLC, 4.125% to 6/30/26, due 6/30/51 (b)(c)(g) |
3,950,000 |
3,649,631 |
||||||||||
Discover Financial Services, 5.50% to 10/30/27, Series C (a)(c) |
6,776,000 |
5,695,258 |
||||||||||
Discover Financial Services, 6.125% to 6/23/25, Series D (a)(c) |
8,394,000 |
8,414,543 |
||||||||||
ILFC E-Capital Trust II, 7.395% (3 Month USD Term SOFR + 2.062%), due 12/21/65 (TruPS)(g)(i) |
5,352,000 |
4,330,726 |
||||||||||
29,987,914 |
||||||||||||
I NSURANCE |
14.5% |
|||||||||||
Argentum Netherlands BV for Swiss Re Ltd., 5.625% to 8/15/27, due 8/15/52 (Switzerland) (b)(c)(f) |
10,900,000 |
10,699,712 |
||||||||||
Argentum Netherlands BV for Swiss Re Ltd., 5.75% to 8/15/25, due 8/15/50 (Netherlands) (b)(c)(f) |
6,350,000 |
6,271,044 |
||||||||||
Athora Netherlands NV, 7.00% to 6/19/25 (Netherlands) (a)(c)(e)(f) |
EUR |
5,030,000 |
5,337,475 |
|||||||||
Corebridge Financial, Inc., 6.875% to 9/15/27, due 12/15/52 (b)(c) |
7,175,000 |
7,105,286 |
||||||||||
Enstar Finance LLC, 5.50% to 1/15/27, due 1/15/42 (b)(c) |
5,970,000 |
5,665,083 |
||||||||||
Enstar Finance LLC, 5.75% to 9/1/25, due 9/1/40 (b)(c) |
6,300,000 |
6,157,586 |
||||||||||
Global Atlantic Fin Co., 4.70% to 7/15/26, due 10/15/51 (c)(g) |
7,910,000 |
6,992,869 |
||||||||||
See accompanying notes to financial statements.
15
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2024 (Unaudited)
Principal Amount* |
Value |
|||||||||||
Lancashire Holdings Ltd., 5.625% to 3/18/31, due 9/18/41 (United Kingdom) (b)(c)(f) |
7,100,000 |
$ |
6,321,968 |
|||||||||
Liberty Mutual Group, Inc., 4.125% to 9/15/26, due 12/15/51 (c)(g) |
2,023,000 |
1,846,200 |
||||||||||
Lincoln National Corp., 9.25% to 12/1/27, Series C (a)(c) |
14,850,000 |
15,860,468 |
||||||||||
Markel Group, Inc., 6.00% to 6/1/25 (a)(c) |
3,007,000 |
2,987,417 |
||||||||||
MetLife Capital Trust IV, 7.875%, due 12/15/37 (TruPS) (b)(g) |
7,800,000 |
8,271,229 |
||||||||||
MetLife, Inc., 9.25%, due 4/8/38 (b)(g) |
5,500,000 |
6,333,630 |
||||||||||
Nippon Life Insurance Co., 5.95% to 4/16/34, due 4/16/54 (Japan) (b)(c)(g) |
9,200,000 |
8,951,336 |
||||||||||
Phoenix Group Holdings PLC, 5.625% to 1/29/25 (United Kingdom) (a)(c)(e)(f) |
3,000,000 |
2,921,220 |
||||||||||
Prudential Financial, Inc., 6.00% to 6/1/32, due 9/1/52 (b)(c) |
7,936,000 |
7,686,581 |
||||||||||
Prudential Financial, Inc., 6.50% to 12/15/33, due 3/15/54 (b)(c) |
9,405,000 |
9,289,826 |
||||||||||
Prudential Financial, Inc., 6.75% to 12/1/32, due 3/1/53 (b)(c) |
5,785,000 |
5,910,297 |
||||||||||
Rothesay Life PLC, 4.875% to 4/13/27, Series NC6 (United Kingdom) (a)(c)(e)(f) |
5,200,000 |
4,442,214 |
||||||||||
SBL Holdings, Inc., 6.50% to 11/13/26 (a)(c)(g) |
6,190,000 |
4,859,006 |
||||||||||
SBL Holdings, Inc., 7.00% to 5/13/25 (a)(c)(g) |
5,013,000 |
4,231,941 |
||||||||||
Sumitomo Life Insurance Co., 5.875% to 1/18/34 (Japan) (a)(b)(c)(g) |
11,400,000 |
10,946,049 |
||||||||||
Voya Financial, Inc., 7.758% to 9/15/28, Series A (a)(c) |
9,575,000 |
9,755,671 |
||||||||||
Zurich Finance Ireland Designated Activity Co., 3.00% to 1/19/31, due 4/19/51, Series EMTN (Switzerland) (b)(c)(f) |
4,600,000 |
3,740,518 |
||||||||||
162,584,626 |
||||||||||||
See accompanying notes to financial statements.
16
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2024 (Unaudited)
Principal Amount* |
Value |
|||||||||||
P IPELINES |
9.4% |
|||||||||||
Enbridge, Inc., 5.50% to 7/15/27, due 7/15/77, Series 2017-A (Canada)(c) |
1,900,000 |
$ |
1,753,640 |
|||||||||
Enbridge, Inc., 5.75% to 4/15/30, due 7/15/80, Series 20-A (Canada)(c) |
4,772,000 |
4,377,692 |
||||||||||
Enbridge, Inc., 6.00% to 1/15/27, due 1/15/77, Series 16-A (Canada)(c) |
2,421,000 |
2,294,438 |
||||||||||
Enbridge, Inc., 6.25% to 3/1/28, due 3/1/78 (Canada) (c) |
8,605,000 |
8,044,651 |
||||||||||
Enbridge, Inc., 7.375% to 10/15/27, due 1/15/83 (Canada )(c) |
3,512,000 |
3,452,391 |
||||||||||
Enbridge, Inc., 7.625% to 10/15/32, due 1/15/83 (Canada) (c) |
10,208,000 |
10,188,645 |
||||||||||
Enbridge, Inc., 8.25% to 10/15/28, due 1/15/84, Series NC5 (Canada) (c) |
15,005,000 |
15,395,160 |
||||||||||
Enbridge, Inc., 8.50% to 10/15/33, due 1/15/84 (Canada) (c) |
13,710,000 |
14,498,983 |
||||||||||
Energy Transfer LP, 6.50% to 11/15/26, Series H (a) (c) |
5,355,000 |
5,209,600 |
||||||||||
Energy Transfer LP, 6.625% to 2/15/28, Series B (a)(c) |
573,000 |
528,491 |
||||||||||
Energy Transfer LP, 7.125% to 5/15/30, Series G (a)(c) |
9,896,000 |
9,526,034 |
||||||||||
Energy Transfer LP, 8.00% to 2/15/29, due 5/15/54 (c) |
5,230,000 |
5,390,263 |
||||||||||
Enterprise Products Operating LLC, 8.38% (3 Month USD Term SOFR + 3.039%), due 6/1/67 (b)(i) |
1,500,000 |
1,477,290 |
||||||||||
Transcanada Trust, 5.50% to 9/15/29, due 9/15/79 (Canada) (c) |
7,972,000 |
7,219,943 |
||||||||||
Transcanada Trust, 5.60% to 12/7/31, due 3/7/82 (Canada) (c) |
16,505,000 |
14,456,269 |
||||||||||
Transcanada Trust, 5.875% to 8/15/26, due 8/15/76, Series 16-A (Canada)(c) |
1,219,000 |
1,171,644 |
||||||||||
104,985,134 |
||||||||||||
See accompanying notes to financial statements.
17
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2024 (Unaudited)
Principal Amount* |
Value |
|||||||||||
R EAL ESTATE |
1.9% |
|||||||||||
Scentre Group Trust 2, 5.125% to 6/24/30, due 9/24/80 (Australia) (b)(c)(g) |
9,600,000 |
$ |
8,766,279 |
|||||||||
Unibail - Rodamco-Westfield SE, 7.25% to 7/3/28 (France) (a)(c)(f) |
EUR |
11,100,000 |
12,396,075 |
|||||||||
21,162,354 |
||||||||||||
R ETAIL & WHOLESALE —STAPLES |
0.3% |
|||||||||||
Land O’ Lakes, Inc., 7.00% (a)(g) |
3,600,000 |
2,799,000 |
||||||||||
Land O’ Lakes, Inc., 7.25% (a)(g) |
1,600,000 |
1,288,000 |
||||||||||
4,087,000 |
||||||||||||
T ELECOMMUNICATIONS |
0.7% |
|||||||||||
Vodafone Group PLC, 7.00% to 1/4/29, due 4/4/79 (United Kingdom) (c) |
2,875,000 |
2,921,506 |
||||||||||
Vodafone Group PLC, 8.00% to 5/30/31, due 8/30/86, Series EMTN (United Kingdom) (c)(f) |
GBP |
3,500,000 |
4,665,558 |
|||||||||
7,587,064 |
||||||||||||
U TILITIES |
14.1% |
|||||||||||
Algonquin Power & Utilities Corp., 4.75% to 1/18/27, due 1/18/82 (Canada) (c) |
14,372,000 |
12,479,062 |
||||||||||
APA Infrastructure Ltd., 7.125% to 11/9/28, due 11/9/83, Series EMTN (Australia) (c)(f) |
EUR |
5,200,000 |
5,927,499 |
|||||||||
CMS Energy Corp., 4.75% to 3/1/30, due 6/1/50 (c) |
2,000,000 |
1,808,904 |
||||||||||
Dominion Energy, Inc., 4.35% to 1/15/27, Series C (a)(c) |
16,640,000 |
15,319,461 |
||||||||||
Edison International, 5.00% to 12/15/26, Series B (a)(c) |
3,459,000 |
3,259,085 |
||||||||||
Edison International, 7.875% to 3/15/29, due 6/15/54 (c) |
5,020,000 |
5,113,954 |
||||||||||
Electricite de France SA, 5.375% to 1/29/25, Series EMTN (France) (a)(b)(c)(f) |
EUR |
6,000,000 |
6,408,454 |
|||||||||
Electricite de France SA, 6.00% to 1/29/26, Series EMTN (France) (a)(b)(c)(f) |
GBP |
13,400,000 |
16,390,340 |
|||||||||
Electricite de France SA, 7.50% to 9/6/28, Series EMTN (France) (a)(b)(c)(f) |
EUR |
4,400,000 |
5,132,264 |
|||||||||
Electricite de France SA, 9.125% to 3/15/33 (France) (a)(b)(c)(g) |
4,600,000 |
5,006,424 |
||||||||||
See accompanying notes to financial statements.
18
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2024 (Unaudited)
Principal Amount* |
Value |
|||||||||||
Emera, Inc., 6.75% to 6/15/26, due 6/15/76, Series 16-A (Canada)(b)(c) |
17,966,000 |
$ |
17,828,526 |
|||||||||
Enel SpA, 6.625% to 4/16/31, Series EMTN (Italy) (a)(c)(f) |
EUR |
4,600,000 |
5,311,194 |
|||||||||
NextEra Energy Capital Holdings, Inc., 3.80% to 3/15/27, due 3/15/82 (b)(c) |
1,250,000 |
1,137,041 |
||||||||||
NextEra Energy Capital Holdings, Inc., 6.70% to 6/1/29, due 9/1/54 (b)(c) |
12,720,000 |
12,606,811 |
||||||||||
Sempra, 4.125% to 1/1/27, due 4/1/52 (b)(c) |
10,653,000 |
9,686,436 |
||||||||||
Sempra, 4.875% to 10/15/25 (a)(c) |
10,985,000 |
10,714,809 |
||||||||||
Sempra, 6.875% to 7/1/29, due 10/1/54 (b)(c) |
12,190,000 |
12,067,062 |
||||||||||
Southern California Edison Co., 9.767% (3 Month USD Term SOFR + 4.461%), Series E (a)(i) |
12,175,000 |
12,231,867 |
||||||||||
158,429,193 |
||||||||||||
T OTAL PREFERRED SECURITIES —OVER - THE -C OUNTER (Identified cost—$1,404,928,968) |
1,381,669,554 |
|||||||||||
Shares |
||||||||||||
S HORT -TERM INVESTMENTS |
0.2% |
|||||||||||
M ONEY MARKET FUNDS |
||||||||||||
State Street Institutional Treasury Plus Money Market Fund, Premier Class, 5.24% (j) |
1,163,519 |
1,163,519 |
||||||||||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 5.25% (j) |
1,164,000 |
1,164,000 |
||||||||||
T OTAL SHORT -TERM INVESTMENTS (Identified cost—$2,327,519) |
2,327,519 |
|||||||||||
T OTAL INVESTMENTS IN SECURITIES (Identified cost—$1,737,605,251) |
150.6% |
1,687,013,805 |
||||||||||
L IABILITIES IN EXCESS OF OTHER ASSETS |
(50.6) |
(566,830,774 |
) | |||||||||
N ET ASSETS (Equivalent to $20.27 per share based on 55,273,457 shares of common stock outstanding) |
100.0% |
$ |
1,120,183,031 |
|||||||||
See accompanying notes to financial statements.
19
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2024 (Unaudited)
Centrally Cleared Interest Rate Swap Contracts
Notional Amount |
Fixed Rate Payable |
Fixed Payment Frequency |
Floating Rate Receivable (resets monthly) |
Floating Payment Frequency |
Maturity Date |
Value |
Upfront Receipts (Payments) |
Unrealized Appreciation (Depreciation) |
||||||||||||||||||||||||
$ |
125,000,000 |
0.270% |
Monthly |
5.434% (k) |
Monthly |
12/20/24 |
$ |
4,223,629 |
$ |
10,068 |
$ |
4,233,697 |
||||||||||||||||||||
35,000,000 |
0.249% |
Monthly |
5.434% (k) |
Monthly |
12/20/24 |
1,187,403 |
2,615 |
1,190,018 |
||||||||||||||||||||||||
125,000,000 |
0.360% |
Monthly |
5.434% (k) |
Monthly |
12/20/25 |
9,586,241 |
18,697 |
9,604,938 |
||||||||||||||||||||||||
35,000,000 |
0.349% |
Monthly |
5.434% (k) |
Monthly |
12/20/25 |
2,690,297 |
4,334 |
2,694,631 |
||||||||||||||||||||||||
160,000,000 |
0.464% |
Monthly |
5.434% (k) |
Monthly |
12/20/26 |
17,711,441 |
28,363 |
17,739,804 |
||||||||||||||||||||||||
70,000,000 |
0.930% |
Monthly |
5.434% (k) |
Monthly |
9/15/27 |
8,465,294 |
12,856 |
8,478,150 |
||||||||||||||||||||||||
GBP |
28,000,000 |
0.900% |
Monthly |
5.200% (l) |
Monthly |
9/15/27 |
3,853,447 |
— |
3,853,447 |
|||||||||||||||||||||||
$ |
47,717,752 |
$ |
76,933 |
$ |
47,794,685 |
|||||||||||||||||||||||||||
Over-the-Counter
Counterparty |
Notional Amount |
Fixed Payable Rate |
Fixed Payment Frequency |
Underlying Reference Entity |
Position |
Maturity Date |
Value |
Premiums Paid |
Unrealized Appreciation (Depreciation) |
|||||||||||||||||||||||||||
BNP Paribas |
$ |
15,033,251 |
0.25% |
Monthly |
BNPXCHY5 Index (m) |
Short |
5/15/24 |
$ |
(46,517 |
) |
$ |
— |
$ |
(46,517 |
) | |||||||||||||||||||||
BNP Paribas |
EUR |
13,779,417 |
0.30% |
Monthly |
BNPXCEX5 Index (n) |
Short |
5/15/24 |
(53,869 |
) |
— |
(53,869 |
) | ||||||||||||||||||||||||
$ |
(100,386 |
) |
$ |
— |
$ |
(100,386 |
) | |||||||||||||||||||||||||||||
Forward Foreign Currency Exchange Contracts
Counterparty |
Contracts to Deliver |
In Exchange For |
Settlement Date |
Unrealized Appreciation (Depreciation) |
||||||||||||||||
Brown Brothers Harriman |
CAD |
8,506,000 |
USD |
6,287,142 |
5/2/24 |
$ |
108,274 |
|||||||||||||
Brown Brothers Harriman |
EUR |
149,167,080 |
USD |
161,292,872 |
5/2/24 |
2,101,682 |
||||||||||||||
Brown Brothers Harriman |
GBP |
12,411,535 |
USD |
15,681,912 |
5/2/24 |
173,077 |
||||||||||||||
Brown Brothers Harriman |
USD |
6,188,387 |
CAD |
8,506,000 |
5/2/24 |
(9,520 |
) | |||||||||||||
Brown Brothers Harriman |
USD |
159,361,158 |
EUR |
149,167,080 |
5/2/24 |
(169,968 |
) | |||||||||||||
Brown Brothers Harriman |
USD |
15,532,788 |
GBP |
12,411,535 |
5/2/24 |
(23,952 |
) | |||||||||||||
Brown Brothers Harriman |
CAD |
8,622,000 |
USD |
6,275,749 |
6/4/24 |
9,459 |
||||||||||||||
Brown Brothers Harriman |
EUR |
151,560,092 |
USD |
162,118,829 |
6/4/24 |
167,016 |
||||||||||||||
Brown Brothers Harriman |
GBP |
12,476,049 |
USD |
15,615,023 |
6/4/24 |
22,956 |
||||||||||||||
$ |
2,379,024 |
|||||||||||||||||||
See accompanying notes to financial statements.
20
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2024 (Unaudited)
Glossary of Portfolio Abbreviations
CAD |
Canada Dollar | |
EMTN |
Euro Medium Term Note | |
EUR |
Euro Currency | |
GBP |
British Pound | |
OIS |
Overnight Indexed Swap | |
SOFR |
Secured Overnight Financing Rate | |
TruPS |
Trust Preferred Securities | |
USD |
United States Dollar |
Note: Percentages indicated are based on the net assets of the Fund.
* |
Amount denominated in U.S. dollars unless otherwise indicated. |
† |
Represents shares. |
(a) |
Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer. |
(b) |
All or a portion of the security is pledged as collateral in connection with the Fund’s revolving credit agreement. $531,905,999 in aggregate has been pledged as collateral. |
(c) |
Security converts to floating rate after the indicated fixed–rate coupon period. |
(d) |
Non–income producing security. |
(e) |
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 $306,532,617 which represents 27.4% of the net assets of the Fund (17.8% of the managed assets of the Fund). |
(f) |
Securities exempt from registration under Regulation S of the Securities Act of 1933. These securities are subject to resale restrictions. Aggregate holdings amounted to $253,983,185 which represents 22.7% of the net assets of the Fund, of which 0.0% are illiquid. |
(g) |
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 $208,008,459 which represents 18.6% of the net assets of the Fund, of which 0.0% are illiquid. |
(h) |
Security is in default. |
(i) |
Variable rate. Rate shown is in effect at April 30, 2024. |
(j) |
Rate quoted represents the annualized seven–day yield. |
(k) |
Based on USD-SOFR-OIS. |
(l) |
Based on 1–Month GBP SONIA. Represents rates in effect at April 30, 2024. |
See accompanying notes to financial statements.
21
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
SCHEDULE OF INVESTMENTS—(Continued)
April 30, 2024 (Unaudited)
(m) |
The index intends to track the performance of the CDX.NA HY. The two constituent investments held within the index at April 30, 2024 were as follows: |
Investment |
Receive |
Frequency |
Payment |
Frequency |
Maturity Date |
Total Weight |
3/31/24 Price |
3/31/24 Value |
||||||||||||||||||||
Credit Default Swaps (CDS)—MARKIT CDX.NA.HY.42 Index |
5.00% per annum |
Quarterly |
Performance of CDS |
Semiannually |
12/20/28 |
100.30 |
% |
$ |
106.06 |
$ |
15,123,542 |
|||||||||||||||||
Cash |
— |
— |
— |
— |
— |
(0.30 |
) |
— |
(45,235 |
) | ||||||||||||||||||
(n) |
The index intends to track the performance of the iTraxx Crossover CDS. The two constituent investments held within the index at April 30, 2024 were as follows: |
Investment |
Receive |
Frequency |
Payment |
Frequency |
Maturity Date |
Total Weight |
3/31/24 Price |
3/31/24 Value |
||||||||||||||||||||
Credit Default Swaps (CDS)—MARKIT ITRX EUR XOVER Index |
5.00% per annum |
Quarterly |
Performance of CDS |
Semiannually |
12/20/28 |
100.83 |
% |
EUR 327.50 |
$ |
14,880,041 |
||||||||||||||||||
Cash |
— |
— |
— |
— |
(0.83 |
) |
— |
(122,488 |
) | |||||||||||||||||||
Country Summary |
% of Managed Assets |
|||
United States |
59.0 |
|||
Canada |
9.4 |
|||
France |
7.8 |
|||
United Kingdom |
6.7 |
|||
Netherlands |
3.6 |
|||
Switzerland |
2.9 |
|||
Spain |
2.4 |
|||
Germany |
1.2 |
|||
Japan |
1.2 |
|||
Italy |
1.1 |
|||
Ireland |
0.9 |
|||
Australia |
0.9 |
|||
Other (includes short-term investments) |
2.9 |
|||
100.0 |
||||
See accompanying notes to financial statements.
22
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2024 (Unaudited)
ASSETS: |
||||
Investments in securities, at value (Identified cost—$1,737,605,251) |
$ |
1,687,013,805 |
||
Cash |
111,201 |
|||
Cash collateral pledged for interest rate swap contracts |
7,304,683 |
|||
Foreign currency, at value (Identified cost—$1,534,181) |
1,533,206 |
|||
Receivable for: |
||||
Dividends and interest |
20,786,380 |
|||
Investment securities sold |
9,539,287 |
|||
Variation margin on interest rate swap contracts |
727,908 |
|||
Unrealized appreciation on forward foreign currency exchange contracts |
2,582,464 |
|||
Other assets |
92,299 |
|||
Total Assets |
1,729,691,233 |
|||
LIABILITIES: |
||||
Total return swap contracts, at value |
100,386 |
|||
Unrealized depreciation on forward foreign currency exchange contracts |
203,440 |
|||
Payable for: |
||||
Credit agreement (See Note 7) |
601,235,155 |
|||
Interest expense |
3,009,887 |
|||
Investment securities purchased |
2,093,473 |
|||
Investment management fees |
1,559,053 |
|||
Dividends and distributions declared |
1,001,660 |
|||
Administration fees |
93,543 |
|||
Trustees’ fees |
3,246 |
|||
Other liabilities |
208,359 |
|||
Total Liabilities |
609,508,202 |
|||
NET ASSETS applicable to 55,273,457 shares of $0.001 par value of common stock outstanding |
$ |
1,120,183,031 |
||
NET ASSETS consist of: |
||||
Paid-in capital |
$ |
1,358,462,941 |
||
Total distributable earnings/(accumulated loss) |
(238,279,910 |
) | ||
$ |
1,120,183,031 |
|||
NET ASSET VALUE PER SHARE: |
||||
($1,120,183,031 ÷ 55,273,457 shares outstanding) |
$ |
20.27 |
||
MARKET PRICE PER SHARE |
$ |
18.55 |
||
MARKET PRICE PREMIUM (DISCOUNT) TO NET ASSET VALUE PER SHARE |
(8.49 |
)% | ||
See accompanying notes to financial statements.
23
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 2024 (Unaudited)
Investment Income: |
||||
Interest income |
$ |
39,277,147 |
||
Dividend income (net of $30,816 of foreign withholding tax) |
11,807,043 |
|||
Total Investment Income |
51,084,190 |
|||
Expenses: |
||||
Interest expense |
18,382,578 |
|||
Investment management fees |
8,482,265 |
|||
Administration fees |
580,336 |
|||
Professional fees |
54,601 |
|||
Shareholder reporting expenses |
47,266 |
|||
Trustees’ fees and expenses |
24,647 |
|||
Custodian fees and expenses |
20,504 |
|||
Transfer agent fees and expenses |
9,605 |
|||
Miscellaneous |
7,373 |
|||
Total Expenses |
27,609,175 |
|||
Net Investment Income (Loss) |
23,475,015 |
|||
Net Realized and Unrealized Gain (Loss): |
||||
Net realized gain (loss) on: |
||||
Investments in securities |
(26,492,160 |
) | ||
Interest rate swap contracts |
14,998,447 |
|||
Total return swap contracts |
(2,034,007 |
) | ||
Forward foreign currency exchange contracts |
(636,073 |
) | ||
Foreign currency transactions |
(69,387 |
) | ||
Net realized gain (loss) |
(14,233,180 |
) | ||
Net change in unrealized appreciation (depreciation) on: |
||||
Investments in securities |
148,627,402 |
|||
Interest rate swap contracts |
(10,773,114 |
) | ||
Total return swap contracts |
(206,244 |
) | ||
Forward foreign currency exchange contracts |
2,129,251 |
|||
Foreign currency translations |
(1,073,936 |
) | ||
Net change in unrealized appreciation (depreciation) |
138,703,359 |
|||
Net Realized and Unrealized Gain (Loss) |
124,470,179 |
|||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ |
147,945,194 |
||
See accompanying notes to financial statements.
24
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
For the Six Months Ended April 30, 2024 |
For the Year Ended October 31, 2023 |
|||||||
Change in Net Assets: |
||||||||
From Operations: |
||||||||
Net investment income (loss) |
$ |
23,475,015 |
$ |
43,545,877 |
||||
Net realized gain (loss) |
(14,233,180 |
) |
(92,417,891 |
) | ||||
Net change in unrealized appreciation (depreciation) |
138,703,359 |
45,262,342 |
||||||
Net increase (decrease) in net assets resulting from operations |
147,945,194 |
(3,609,672 |
) | |||||
Distributions to shareholders |
(44,439,859 |
) |
(81,766,289 |
) | ||||
Tax return of capital to shareholders |
— |
(6,671,242 |
) | |||||
Total distributions |
(44,439,859 |
) |
(88,437,531 |
) | ||||
Total increase (decrease) in net assets |
103,505,335 |
(92,047,203 |
) | |||||
Net Assets: |
||||||||
Beginning of period |
1,016,677,696 |
1,108,724,899 |
||||||
End of period |
$ |
1,120,183,031 |
$ |
1,016,677,696 |
||||
See accompanying notes to financial statements.
25
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
STATEMENT OF CASH FLOWS
For the Six Months Ended April 30, 2024 (Unaudited)
Increase (Decrease) in Cash: |
||||
Cash Flows from Operating Activities: |
||||
Net increase (decrease) in net assets resulting from operations |
$ |
147,945,194 |
||
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities: |
||||
Purchases of long-term investments |
(546,358,770 |
) | ||
Proceeds from sales and maturities of long-term investments |
505,333,245 |
|||
Net purchases, sales and maturities of short-term investments |
55,901,345 |
|||
Net amortization of premium on investments in securities |
4,652,883 |
|||
Net increase in dividends and interest receivable and other assets |
(1,449,151 |
) | ||
Net decrease in payable for collateral on option contracts |
(270,000 |
) | ||
Net increase in interest expense payable, accrued expenses and other liabilities |
7,668 |
|||
Net decrease in payable for variation margin on interest rate swap contracts |
(475,475 |
) | ||
Net change in unrealized appreciation on investments in securities |
(148,627,402 |
) | ||
Net change in unrealized depreciation on total return swap contracts |
206,244 |
|||
Net change in unrealized appreciation on forward foreign currency exchange contracts |
(2,129,251 |
) | ||
Net realized loss on investments in securities |
26,492,160 |
|||
Cash provided by operating activities |
41,228,690 |
|||
Cash Flows from Financing Activities: |
||||
Net increase in payable for revolving credit agreement* |
1,125,327 |
|||
Dividends and distributions paid |
(44,461,611 |
) | ||
Cash used for financing activities |
(43,336,284 |
) | ||
Increase (decrease) in cash and restricted cash |
(2,107,594 |
) | ||
Cash and restricted cash at beginning of period (including foreign currency) |
11,056,684 |
|||
Cash and restricted cash at end of period (including foreign currency) |
$ |
8,949,090 |
||
Supplemental Disclosure of Cash Flow Information:
For the six months ended April 30, 2024, interest paid was $18,526,797.
The following table provides a reconciliation of cash and restricted cash reported within the Statement of Assets and Liabilities that sums to the total of such amounts shown on the Statement of Cash Flows.
Cash |
$ |
111,201 |
||
Restricted cash |
7,304,683 |
|||
Foreign currency |
1,533,206 |
|||
Total cash and restricted cash shown on the Statement of Cash Flows |
$ |
8,949,090 |
||
Restricted cash consists of cash that has been pledged to cover the Fund’s collateral or margin obligations under derivative contracts. It is reported on the Statement of Assets and Liabilities as cash collateral pledged for interest rate swap contracts.
* |
Amount represents mark-to-market increase on GBP portion of the credit agreement. |
See accompanying notes to financial statements.
26
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
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.
For the Six Months Ended April 30, 2024 |
For the Year Ended October 31, |
For the Period October 28, 2020 (a) through October 31, 2020 |
||||||||||||||||||
Per Share Operating Data: |
2023 |
2022 |
2021 |
|||||||||||||||||
Net asset value, beginning of period |
$18.39 |
$20.06 |
$25.93 |
$24.99 |
$25.00 |
|||||||||||||||
Income (loss) from investment operations: |
||||||||||||||||||||
Net investment income (loss) (b) |
0.42 |
0.79 |
1.04 |
1.02 |
(0.01 |
) | ||||||||||||||
Net realized and unrealized gain (loss) |
2.26 |
(0.86 |
) |
(5.20 |
) |
1.35 |
(0.00 |
) (c) | ||||||||||||
Total from investment operations |
2.68 |
(0.07 |
) |
(4.16 |
) |
2.37 |
(0.01 |
) | ||||||||||||
Less dividends and distributions to shareholders from: |
||||||||||||||||||||
Net investment income |
(0.80 |
) |
(1.48 |
) |
(1.51 |
) |
(1.42 |
) |
— |
|||||||||||
Net realized gain |
— |
— |
(0.11 |
) |
(0.01 |
) |
— |
|||||||||||||
Tax return of capital |
— |
(0.12 |
) |
(0.09 |
) |
— |
— |
|||||||||||||
Total dividends and distributions to shareholders |
(0.80 |
) |
(1.60 |
) |
(1.71 |
) |
(1.43 |
) |
— |
|||||||||||
Net increase (decrease) in net asset value |
1.88 |
(1.67 |
) |
(5.87 |
) |
0.94 |
(0.01 |
) | ||||||||||||
Net asset value, end of period |
$20.27 |
$18.39 |
$20.06 |
$25.93 |
$24.99 |
|||||||||||||||
Market value, end of period |
$18.55 |
$16.81 |
$17.59 |
$24.97 |
$25.00 |
|||||||||||||||
Total net asset value return (d) |
15.00 |
% (e) |
0.15 |
% |
-16.09 |
% |
9.77 |
% |
-0.04 |
% (e) | ||||||||||
Total market value return (d) |
15.13 |
% (e) |
4.40 |
% |
-23.59 |
% |
5.66 |
% |
0.00 |
% (e) | ||||||||||
See accompanying notes to financial statements.
27
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)
For the Six Months Ended April 30, 2024 |
For the Year Ended October 31, |
For the Period October 28, 2020 (a) through October 31, 2020 |
||||||||||||||||||
Ratios/Supplemental Data: |
2023 |
2022 |
2021 |
|||||||||||||||||
Net assets, end of period (in millions) |
$1,120.2 |
$1,016.7 |
$1,108.7 |
$1,433.5 |
$1,249.6 |
|||||||||||||||
Ratios to average daily net assets: |
||||||||||||||||||||
Expenses |
5.03 |
% (f) |
4.99 |
% |
2.71 |
% |
2.01 |
% |
1.24 |
% (g) | ||||||||||
Expenses (excluding interest expense) |
1.68 |
% (f) |
1.73 |
% |
1.67 |
% |
1.61 |
% |
1.24 |
% (g) | ||||||||||
Net investment income (loss) |
4.28 |
% (f) |
4.02 |
% |
4.52 |
% |
3.97 |
% |
(1.22 |
)% (g) | ||||||||||
Ratio of expenses to average daily managed assets (h) |
3.25 |
% (f) |
3.15 |
% |
1.75 |
% |
1.40 |
% |
1.24 |
% (g) | ||||||||||
Portfolio turnover rate |
31 |
% (e) |
35 |
% |
41 |
% |
47 |
% |
0 |
% (e) | ||||||||||
Revolving Credit Agreement |
||||||||||||||||||||
Asset coverage ratio for revolving credit agreement |
286 |
% |
269 |
% |
262 |
% |
308 |
% |
NA |
|||||||||||
Asset coverage per $1,000 for revolving credit agreement |
$ 2,863 |
$ 2,694 |
$ 2,624 |
$ 3,077 |
$ NA |
|||||||||||||||
Amount of loan outstanding (in millions) |
$ 601.2 |
$ 600.1 |
$ 682.8 |
$ 690.2 |
$ NA |
|||||||||||||||
(a) |
Commencement of investment operations. |
(b) |
Calculation based on average shares outstanding. |
(c) |
Amount is less than $0.005. |
(d) |
Total net asset value return measures the change in net asset value per share over the period indicated. Total market value return is computed based upon the Fund’s market price per share and excludes the effects of brokerage commissions. Dividends and distributions are assumed, for purposes of these calculations, to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. |
(e) |
Not annualized. |
(f) |
Annualized. |
(g) |
Ratios for periods less than one year are annualized. Certain professional, shareholder reporting and non–recurring expenses incurred by the Fund are not annualized for periods less than one year. |
(h) |
Average daily managed assets represent net assets plus the outstanding balance of the credit agreement. |
See accompanying notes to financial statements.
28
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Note 1. Organization and Significant Accounting Policies
Cohen & Steers
Tax-Advantaged
Preferred Securities and Income Fund, a Maryland statutory trust (the Fund), was organized on November 14, 2019, and is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as a non-diversified,
closed-end
management statutory trust. On October 17, 2023, the Fund’s diversification status under the 1940 Act changed from a non-diversified
fund to a diversified fund. The Fund’s primary investment objective is high current income. The Fund’s secondary investment objective is capital appreciation. Investment operations commenced on October 28, 2020. The Fund has a limited term and intends to terminate as of the first business day following the twelfth anniversary of the effective date of the Fund’s initial registration statement, which the Fund expects to occur on or about October 27, 2032 (the Dissolution Date); provided that the Fund’s Board of Trustees may, by a vote of the majority of the Board of Trustees and seventy-five percent (75%) of the members of the Board of Trustees of who either (i) have been a member of the Board of Trustees for a period of at least
thirty-six
months (or since the commencement of the Fund’s operations, if less than thirty-six
months) or (ii) were nominated to serve as a member of the Board of Trustees by a majority of the Continuing Trustees then members of the Board of Trustees (a Board Action Vote), without shareholder approval, extend the Dissolution Date (i) once for up to one year, and (ii) once for up to an additional one year, to a date up to and including two years after the initial Dissolution Date, which later date shall then become the Dissolution Date. As of a date within twelve months preceding the Dissolution Date, the Board of Trustees may, by a Board Action Vote, cause the Fund to conduct a tender offer to common shareholders to purchase 100% of the then outstanding common shares of the Fund at a price equal to the net asset value (NAV) per common share on the expiration date of the tender offer (an Eligible Tender Offer). In an Eligible Tender Offer, the Fund will offer to purchase all common shares held by each common shareholder; provided that if the number of properly tendered common shares would result in the Fund having aggregate net assets below $200 million (the Dissolution Threshold), the Eligible Tender Offer will be canceled, no common shares will be repurchased pursuant to the Eligible Tender Offer, and the Fund will terminate as otherwise scheduled. Following the completion of an Eligible Tender Offer, the Board of Trustees may, by a Board Action Vote, eliminate the Dissolution Date without shareholder approval and cause the Fund to have a perpetual existence.
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The Fund is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 946—Investment Companies. The accounting policies of the Fund are in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Portfolio Valuation:
29
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
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. Centrally cleared interest rate swaps are valued at the price determined by the relevant exchange or clearinghouse. Exchange-traded options are valued at their last sale price as of the close of options trading on applicable exchanges on the valuation date. In the absence of a last sale price on such day, options are valued based upon prices provided by a third-party pricing (OTC) option and total return swap contracts are valued based upon prices provided by a third-party pricing service or counterparty.
service. Over-the-counter
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 Trustees. Readily marketable securities traded in the OTC market, including listed securities whose primary market is believed by the investment manager 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 manager, pursuant to delegation by the Board of Trustees, 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 manager, pursuant to delegation by the Board of Trustees, to reflect the fair value of such securities. The pricing services or broker-dealers use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services or broker-dealers may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services or broker-dealers also utilize proprietary valuation models which may consider market transactions in comparable securities and the various relationships between securities in determining fair value and/or characteristics such as benchmark yield curves, option-adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features which are then used to calculate the fair values.
Short-term debt securities with a maturity date of 60 days or less are valued at amortized cost, which approximates fair value. Investments in
open-end
mutual funds are valued at NAV. The Board of Trustees has designated the investment advisor as the Fund’s “Valuation Designee” under Rule
2a-5
under the 1940 Act. As Valuation Designee, the investment advisor is authorized to make fair valuation determinations, subject to the oversight of the Board of Trustees. 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 30
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
Board of Trustees. 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 manager 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 Trustees. 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 |
• |
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.
31
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
The following is a summary of the inputs used as of April 30, 2024 in valuing the Fund’s investments carried at value:
Quoted Prices in Active Markets for Identical Investments (Level 1) |
Other Significant Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total |
|||||||||||||
Preferred Securities—Exchange-Traded |
$ |
303,016,732 |
$ |
— |
$ |
— |
$ |
303,016,732 |
||||||||
Preferred Securities—Over-the-Counter |
— |
1,381,669,554 |
— |
1,381,669,554 |
||||||||||||
Short-Term Investments |
— |
2,327,519 |
— |
2,327,519 |
||||||||||||
Total Investments in Securities (a) |
$ |
303,016,732 |
$ |
1,383,997,073 |
$ |
— |
$ |
1,687,013,805 |
||||||||
Forward Foreign Currency Exchange Contracts |
$ |
— |
$ |
2,582,464 |
$ |
— |
$ |
2,582,464 |
||||||||
Interest Rate Swap Contracts |
— |
47,794,685 |
— |
47,794,685 |
||||||||||||
Total Derivative Assets (a) |
$ |
— |
$ |
50,377,149 |
$ |
— |
$ |
50,377,149 |
||||||||
Forward Foreign Currency Exchange Contracts |
$ |
— |
$ |
(203,440 |
) |
$ |
— |
$ |
(203,440 |
) | ||||||
Total Return Swap Contracts |
— |
(100,386 |
) |
— |
(100,386 |
) | ||||||||||
Total Derivative Liabilities (a) |
$ |
— |
$ |
(303,826 |
) |
$ |
— |
$ |
(303,826 |
) | ||||||
(a) |
Portfolio holdings are disclosed individually on the Schedule of Investments. |
Security Transactions and Investment Income:
ex-dividend
date, except for certain dividends on foreign securities, which are recorded as soon as the Fund is informed after the ex-dividend
date. Distributions from real estate investment trusts (REITs) are recorded as ordinary income, net realized capital gain or return of capital based on information reported by the REITs and management’s estimates of such amounts based on historical information. These estimates are adjusted when the actual source of distributions is disclosed by the REITs and actual amounts may differ from the estimated amounts. Cash:
Foreign Currency Translation
32
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollars based upon prevailing exchange rates on the respective dates of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.
Net realized foreign 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.
Forward Foreign Currency Exchange Contracts
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.
Over-the-Counter
33
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
Centrally Cleared Interest Rate Swap Contracts
marked-to-market
Immediately following execution of the swap agreement, the swap agreement is novated to a central counterparty (the CCP) and the Fund’s counterparty on the swap agreement becomes the CCP. The Fund is required to interface with the CCP through a broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated on the Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities as cash collateral pledged for interest rate swap contracts. The daily change in valuation of centrally cleared swaps is recorded as a receivable or payable for variation margin on interest rate swap contracts in the Statement of Assets and Liabilities. Any upfront payments paid or received upon entering into a swap agreement would be recorded as assets or liabilities, respectively, in the Statement of Assets and Liabilities, and amortized or accreted over the life of the swap and recorded as realized gain (loss) in the Statement of Operations. Payments received from or paid to the counterparty during the term of the swap agreement, or at termination, are recorded as realized gain (loss) in the Statement of Operations.
Swap agreements involve, to varying degrees, elements of market and counterparty risk, and exposure to loss in excess of the related amounts reflected on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates.
Dividends and Distributions to Shareholders
ex-dividend
date and are automatically reinvested in full and fractional shares of the Fund in accordance with the Fund’s Reinvestment Plan, unless the shareholder has elected to have them paid in cash. Dividends from net investment income are subject to recharacterization for tax purposes. 34
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
Distributions Subsequent to April 30, 2024
Ex-Date |
Record Date |
Payable Date |
Amount | |||
5/14/24 |
5/15/24 |
5/31/24 |
$0.134 | |||
6/11/24 |
6/11/24 |
6/28/24 |
$0.134 | |||
7/16/24 |
7/16/24 |
7/31/24 |
$0.134 | |||
8/13/24 |
8/13/24 |
8/30/24 |
$0.134 | |||
9/10/24 |
9/10/24 |
9/30/24 |
$0.134 |
Income Taxes
:
non-U.S.
securities are 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, 2024, 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 Management Fees, Administration Fees and Other Transactions with Affiliates
Investment Management Fees
day-to-day
For the services provided to the Fund, the investment manager receives a fee, accrued daily and paid monthly, at the annual rate of 1.00% of the average daily managed assets of the Fund. Managed assets are equal to the Fund’s net assets, plus the principal amount of loans from financial institutions or debt securities issued by the Fund, the liquidation preference of preferred shares issued by the Fund, if any, and the proceeds of any reverse repurchase agreements entered into by the Fund, if any.
Administration Fees
co-administrator
under a fund accounting and administration agreement. Trustees’ and Officers’ Fees:
35
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
officers affiliated with the investment manager except for the Chief Compliance Officer, who received compensation from the investment manager, which was reimbursed by the Fund, in the amount of $5,581 for the six months ended April 30, 2024.
Note 3. Purchases and Sales of Securities
Purchases and sales of securities, excluding short-term investments, for the six months ended April 30, 2024, totaled $545,913,793 and $510,981,423, respectively.
Note 4. Derivative Investments
The following tables present the value of derivatives held at April 30, 2024 and the effect of derivatives held during the six months ended April 30, 2024, along with the respective location in the financial statements.
Statement of Assets and Liabilities
Assets |
Liabilities |
|||||||||||||||
Derivatives |
Location |
Fair Value |
Location |
Fair Value |
||||||||||||
Credit Risk: |
||||||||||||||||
Total Return Swap Contracts—Over-the-Counter |
— |
$ |
— |
Total return swap contracts, at value |
$ |
100,386 |
||||||||||
Foreign Currency Exchange Risk: |
||||||||||||||||
Forward Foreign Currency Exchange Contracts (a) |
Unrealized appreciation |
2,582,464 |
Unrealized depreciation |
203,440 |
||||||||||||
Interest Rate Risk: |
||||||||||||||||
Interest Rate Swap Contracts (b) |
Receivable for variation margin on interest rate swap contracts |
47,794,685 |
(c) |
— |
— |
|||||||||||
(a) |
Forward foreign currency exchange contracts executed with Brown Brothers Harriman are not subject to a master netting agreement or another similar arrangement. |
(b) |
Not subject to a master netting agreement or another similar arrangement. |
(c) |
Amount represents the cumulative net appreciation (depreciation) on interest rate swap contracts as reported on the Schedule of Investments. The Statement of Assets and Liabilities only reflects the current day variation margin receivable from the broker. |
36
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SECURITIES AND
INCOME
FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
Statement of Operations
Derivatives |
Location |
Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
|||||||
Credit Risk: |
||||||||||
Total Return Swap Contracts |
Net Realized and Unrealized Gain (Loss) |
$ |
(2,034,007 |
) |
$ |
(206,244 |
) | |||
Foreign Currency Exchange Risk: |
||||||||||
Forward Foreign Currency Exchange Contracts |
Net Realized and Unrealized Gain (Loss) |
(636,073 |
) |
2,129,251 |
||||||
Interest Rate Risk: |
||||||||||
Interest Rate Swap Contracts |
Net Realized and Unrealized Gain (Loss) |
14,998,447 |
(10,773,114 |
) | ||||||
At April 30, 2024, the Fund’s derivative assets and liabilities (by type), which are subject to a master netting agreement, are as follows:
Derivative Financial Instruments |
Assets |
Liabilities |
||||||
Credit Risk: |
||||||||
Total Return Swap Contracts—Over-the-Counter |
$ |
— |
$ |
100,386 |
||||
The following table presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under a master netting agreement and net of the related collateral received and pledged by the Fund, if any, as of April 30, 2024:
Counterparty |
Gross Amount of Liabilities Presented in the Statement of Assets and Liabilities |
Financial Instruments and Derivatives Available for Offset |
Collateral Pledged (a) |
Net Amount of Derivative Liabilities (b) |
||||||||||||
BNP Paribas |
$ |
100,386 |
$ |
— |
$ |
— |
$ |
100,386 |
||||||||
(a) |
Collateral received or pledged is limited to the net derivative asset or net derivative liability amounts. Actual collateral amounts received or pledged may be higher than amounts above. |
(b) |
Net amount represents the net receivable from the counterparty or net payable due to the counterparty in the event of default. |
37
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INCOME
FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
The following summarizes the monthly average volume of the Fund’s interest rate swap contracts, total return swap contracts and forward foreign currency exchange contracts activity for the six months ended April 30, 2024:
Interest Rate Swap Contracts |
Total Return Swap Contracts |
Forward Foreign Currency Exchange Contracts |
||||||||||
Average Notional Amount (a) |
$ |
585,175,394 |
$ |
29,349,283 |
$ |
163,554,560 |
||||||
(a) |
Average notional amounts represent the average for all months in which the Fund had interest rate swap contracts, total return swap contracts and forward foreign currency exchange contracts outstanding at month-end. For the period, this represents six months for interest rate swap contracts, six months for total return swap contracts and six months for forward foreign currency exchange contracts. |
Note 5. Income Tax Information
As of April 30, 2024, 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 |
$ |
1,737,605,251 |
||
Gross unrealized appreciation on investments |
$ |
75,019,169 |
||
Gross unrealized depreciation on investments |
(75,537,292 |
) | ||
Net unrealized appreciation (depreciation) on investments |
$ |
(518,123) |
||
As of October 31, 2023, the Fund has a net capital loss carryforward of $183,357,556 which may be used to offset future capital gains. These losses are a short-term capital loss carryforward of $19,572,851 and long-term capital loss carryforward of $163,784,705, 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 an unlimited number of shares of beneficial interest at a par value of $0.001 per share.
The Fund did not issue any shares of common stock for the reinvestment of dividends during each of the six months ended April 30, 2024 and the year ended October 31, 2023.
On December 12, 2023, the Board of Trustees approved the continuation of the delegation of its authority to management to effect repurchases, pursuant to management’s discretion and subject to market conditions and investment considerations, of up to 10% of the Fund’s common shares outstanding (Share Repurchase Program) as of January 1, 2024 through December 31, 2024.
38
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SECURITIES AND
INCOME
FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
During the six months ended April 30, 2024 and the year ended October 31, 2023, the Fund did not effect any repurchases.
Note 7. Borrowings
The Fund has entered into a $650,000,000 revolving credit agreement (the credit agreement) with State Street Bank and Trust Company (State Street) whereby funds may be drawn in U.S. dollars, Euros and Great British Pounds (GBP), subject to certain limitations. Borrowings under the credit agreement, which are secured by certain assets of the Fund, bear interest based on currency-specific variable rates plus a margin. The Fund pays a monthly financing charge which is calculated based on the utilized portion of the credit agreement and a Secured Overnight Financing Rate (SOFR)-based rate. The Fund also pays a fee of 0.15% per annum for each day in which the aggregate loans outstanding under the credit agreement total less than 80% of the credit agreement amount of $650,000,000. The credit agreement has a
360-day
evergreen provision whereby State Street may terminate this agreement upon 360 days’ notice, but the Fund may terminate on 3 days’ notice to State Street. Securities held by the Fund are subject to a lien, granted to State Street, to the extent of the borrowing outstanding in connection with the Fund’s revolving credit agreement. If the Fund fails to meet certain requirements, or maintain other financial covenants required under the credit agreement, the Fund may be required to repay immediately, in part or in full, the loan balance outstanding under the credit agreement, necessitating the sale of portfolio securities at potentially inopportune times. As of April 30, 2024, the Fund had outstanding borrowings of $601,235,155 at a current rate of 6.0% on $560,000,000 and 5.9% on $33,000,000 (drawn in GBP expressed in USD 41,235,155). The carrying value of the borrowings approximates fair value. The borrowings are classified as Level 2 within the fair value hierarchy. During the year ended April 30, 2024, the Fund borrowed an average daily balance of $601,602,664 ($560,000,000 and $41,602,664 drawn in USD and GBP, respectively) at a weighted average borrowing cost of 6.1%. During the year ended April 30, 2024, the Fund had no outstanding borrowings in EUR.
On January 2, 2024, the Fund amended the credit agreement to reduce the commitment amount of the credit agreement from $720,000,000 to $650,000,000 and reduce the margin upon which the financing charge is calculated.
Note 8. Other Risks
Risk of Market Price Discount from Net Asset Value
closed-end
investment companies frequently trade at a discount from their NAV. This characteristic is a risk separate and distinct from the risk that NAV could decrease as a result of investment activities and may be greater for investors expecting to sell their shares in a relatively short period following completion of this offering. Whether investors will realize gains or losses upon the sale of the shares will depend not upon the Fund’s NAV but entirely upon whether the market price of the shares at the time of sale is above or below the investor’s purchase price for the shares. Because the market price of the shares will be determined by factors such as relative supply of and demand for shares in the market, general market and economic C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
conditions, and other factors beyond the control of the Fund, Fund shares may trade at, above or below NAV, or at below or above the initial public offering price.
Preferred Securities Risk
Contingent Capital Securities Risk:
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. Concentration Risk:
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
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.
Credit and Below-Investment-Grade Securities Risk:
Liquidity Risk:
Foreign
(Non-U.S.)
Securities Risk:Foreign Currency Risk:
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
foreign currency risks, and such investments are subject to the risks described under “Derivatives and Hedging Transactions Risk” below.
Leverage Risk:
Derivatives and Hedging Transactions Risk:
Geopolitical Risk
On January 31, 2020, the United Kingdom (UK) withdrew from the European Union (EU) (referred to as Brexit). An agreement between the UK and the EU governing their future trade relationship
C
OHEN
& STEERS
TAX-
ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
became effective January 1, 2021. Brexit has resulted in volatility in European and global markets and could have potentially significant negative long-term impacts on financial markets in the UK and throughout Europe.
On February 24, 2022, Russia launched a large-scale invasion of Ukraine significantly amplifying already existing geopolitical tensions. The United States and many other countries have instituted various economic sanctions against Russia, Russian individuals and entities and Belarus. The extent and duration of the military action, sanctions imposed and other punitive actions taken (including any Russian retaliatory responses to such sanctions and actions), and resulting disruptions in Europe and globally cannot be predicted, but could be significant and have a severe adverse effect on the global economy, securities markets and commodities markets globally, including through global supply chain disruptions, increased inflationary pressures and reduced economic activity. Ongoing conflicts in the Middle East could have similar negative impacts. To the extent the Fund has exposure to the energy sector, the Fund may be especially susceptible to these risks. Furthermore, in March 2023, the shut-down of certain financial institutions raised economic concerns over disruption in the U.S. banking system. There can be no certainty that the actions taken by the U.S. government to strengthen public confidence in the U.S. banking system will be effective in mitigating the effects of financial institution failures on the economy and restoring public confidence in the U.S. banking system. These disruptions may also make it difficult to value the Fund’s portfolio investments and cause certain of the Fund’s investments to become illiquid. The strengthening or weakening of the U.S. dollar relative to other currencies may, among other things, adversely affect the Fund’s investments denominated in
non-U.S.
dollar currencies. It is difficult to predict when similar events affecting the U.S. or global financial markets may occur, the effects that such events may have, and the duration of those effects. Regulatory Risk
18f-4,
which governs the way derivatives are used by registered investment companies, the SEC, Congress, various exchanges and regulatory and self-regulatory authorities, both domestic and foreign, have undertaken reviews of the use of derivatives by registered investment companies, which could affect the nature and extent of instruments used by the Fund. The Fund and the instruments in which it invests may be subject to new or additional regulatory constraints in the future. 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. For example, climate change regulation (such as decarbonization legislation, other mandatory controls to reduce emissions of greenhouse gases, or related disclosure requirements) could significantly affect the Fund or its investments by, among other things, increasing compliance costs or underlying companies’ operating costs and capital expenditures. Similarly, regulatory developments in other countries may have an unpredictable and adverse impact on the Fund. 43
C
OHEN
& STEERS
TAX-
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SECURITIES AND
INCOME
FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)
Note 9. 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 10. Subsequent Events
Management has evaluated events and transactions occurring after April 30, 2024 through the date that the financial statements were issued, and has determined that no additional disclosure in the financial statements is required.
44
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ADVANTAGED
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SECURITIES AND
INCOME
FUND
PROXY RESULTS (Unaudited)
Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund shareholders voted on the following proposals at the annual meeting held on April 25, 2024. The description of each proposal and number of shares voted are as follows:
Common Shares |
Shares Voted for |
Authority Withheld |
||||||
To elect Trustees: |
||||||||
Adam M. Derechin |
47,278,041 |
978,020 |
||||||
George Grossman |
47,226,354 |
1,029,707 |
||||||
Jane F. Magpiong |
47,366,860 |
889,201 |
||||||
45
C
OHEN
& STEERS
TAX-
ADVANTAGED
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SECURITIES AND
INCOME
FUND
(The following pages are unaudited)
REINVESTMENT PLAN
We urge shareholders who want to take advantage of this plan and whose shares are held in ‘Street Name’ to consult your broker as soon as possible to determine if you must change registration into your own name to participate.
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 866-227-0757, (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 866-227-0757 or (ii) on the SEC’s website at http://www.sec.gov. Disclosures of the Fund’s complete holdings are required to be made monthly on Form N-PORT, with every third month made available to the public by the SEC 60 days after the end of the Fund’s fiscal quarter. The Fund’s Form N-PORT is available (i) without charge, upon request, by calling 866-227-0757 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 and are taxable up to the amount of the Fund’s investment company taxable income and net realized gains. Distributions in excess of the Fund’s investment company taxable income and net realized gains are a return of capital distributed from the Fund’s assets. To the extent this occurs, the Fund’s shareholders of record will be notified of the estimated amount of capital returned to shareholders for each such distribution and this information will also be available at cohenandsteers.com. The final tax treatment of all distributions is reported to shareholders on their 1099-DIV forms, which are mailed after the close of each calendar year. Distributions of capital decrease the Fund’s total assets and, therefore, could have the effect of increasing the Fund’s expense ratio. In addition, in order to make these distributions, the Fund may have to sell portfolio securities at a less than opportune time.
Notice is hereby given in accordance with Rule 23c-1 under the 1940 Act that the Fund may purchase, from time to time, shares of its common stock in the open market.
Changes to the Portfolio Management Team
William F. Scapell, Executive Vice President and Head of the Fixed Income and Preferred Securities investment team of Cohen & Steers Capital Management, Inc. (the “Advisor”), has announced his intention to retire from the Advisor on August 1, 2024. Effective August 1, 2024, William F. Scapell will no longer serve as a portfolio manager of the Fund and Elaine Zaharis-Nikas will assume lead portfolio manager duties for the Fund.
Effective January 31, 2024, Robert Kastoff was added as a portfolio manager of the Fund.
46
C
OHEN
& STEERS
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ADVANTAGED
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SECURITIES AND
INCOME
FUND
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 |
||||
47
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OHEN
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SECURITIES AND
INCOME
FUND
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 Singapore Private 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. | |
48
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OHEN
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FUND
Cohen & Steers Open-End Mutual Funds
C
OHEN
& STEERS
REALTY
SHARES
• |
Designed for investors seeking total return, investing primarily in U.S. real estate securities |
• |
Symbols: CSJAX, CSJCX, CSJIX, CSRSX, CSJRX, CSJZX |
C
OHEN
& STEERS
REAL
ESTATE
SECURITIES
FUND
• |
Designed for investors seeking total return, investing primarily in U.S. real estate securities |
• |
Symbols: CSEIX, CSCIX, CREFX, CSDIX, CIRRX, CSZIX |
C
OHEN
& STEERS
INSTITUTIONAL
REALTY
SHARES
• |
Designed for institutional investors seeking total return, investing primarily in U.S. real estate securities |
• |
Symbol: CSRIX |
C
OHEN
& STEERS
GLOBAL
REALTY
SHARES
• |
Designed for investors seeking total return, investing primarily in global real estate equity securities |
• |
Symbols: CSFAX, CSFCX, CSSPX, GRSRX, CSFZX |
C
OHEN
& STEERS
INTERNATIONAL
REALTY
FUND
• |
Designed for investors seeking total return, investing primarily in international (non-U.S.) real estate securities |
• |
Symbols: IRFAX, IRFCX, IRFIX, IRFRX, IRFZX |
C
OHEN
& STEERS
REAL
ASSETS
FUND
• |
Designed for investors seeking total return and the maximization of real returns during inflationary environments by investing primarily in real assets |
• |
Symbols: RAPAX, RAPCX, RAPIX, RAPRX, RAPZX |
C
OHEN
& STEERS
PREFERRED
SECURITIES
AND
INCOME
FUND
• |
Designed for investors seeking total return (high current income and capital appreciation), investing primarily in preferred and debt securities issued by U.S. and non-U.S. companies |
• |
Symbols: CPXAX, CPXCX, CPXFX, CPXIX, CPRRX, CPXZX |
C
OHEN
& STEERS
LOW
DURATION
PREFERRED
AND
INCOME
FUND
• |
Designed for investors seeking high current income and capital preservation by investing in low-duration preferred and other income securities issued by U.S. and non-U.S. companies |
• |
Symbols: LPXAX, LPXCX, LPXFX, LPXIX, LPXRX, LPXZX |
C
OHEN
& STEERS
FUTURE
OF
ENERGY
FUND
• |
Designed for investors seeking total return, investing primarily in securities of traditional and alternative energy companies |
• |
Symbols: MLOAX, MLOCX, MLOIX, MLORX, MLOZX |
C
OHEN
& STEERS
GLOBAL
INFRASTRUCTURE
FUND
• |
Designed for investors seeking total return, investing primarily in global infrastructure securities |
• |
Symbols: CSUAX, CSUCX, CSUIX, CSURX, CSUZX |
Distributed by Cohen & Steers Securities, LLC.
Please consider the investment objectives, risks, charges and expenses of any Cohen & Steers U.S. registered or by visiting cohenandsteers.com. Please read the summary prospectus and prospectus carefully before investing.
open-end
fund carefully before investing. A summary prospectus and prospectus containing this and other information can be obtained by calling 800-330-7348
49
C
OHEN
& STEERS
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ADVANTAGED
PREFERRED
SECURITIES AND
INCOME
FUND
OFFICERS AND TRUSTEES
Joseph M. Harvey
Trustee, Chair and Vice President
Adam M. Derechin
Trustee
Michael G. Clark
Trustee
George Grossman
Trustee
Dean A. Junkans
Trustee
Gerald J. Maginnis
Trustee
Jane F. Magpiong
Trustee
Daphne L. Richards
Trustee
Ramona Rogers-Windsor
Trustee
James Giallanza
President and Chief Executive Officer
Albert Laskaj
Treasurer and Chief Financial Officer
Dana A. DeVivo
Secretary and Chief Legal Officer
Stephen Murphy
Chief Compliance Officer
and Vice President
William F. Scapell
Vice President
Elaine Zaharis-Nikas
Vice President
KEY INFORMATION
Investment Manager and Administrator
Cohen & Steers Capital Management, Inc.
1166 Avenue of the Americas, 30
th
Floor New York, NY 10036
(212) 832-3232
Co-administrator and Custodian
State Street Bank and Trust Company
One Congress Street, Suite 1
Boston, MA 02114-2016
Transfer Agent
Computershare
150 Royall Street
Canton, MA 02021
(866) 227-0757
Legal Counsel
Ropes & Gray LLP
1211 Avenue of the Americas
New York, NY 10036
New York Stock Exchange Symbol: PTA
Website: cohenandsteers.com
This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Fund shares. Performance data quoted represent past performance. Past performance is no guarantee of future results and your investment may be worth more or less at the time you sell your shares.
50
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Cohen & Steers
Tax-Advantaged
Preferred
Securities and
Income Fund
Semiannual Report
PTASAR
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Included in Item 1 above.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
| (a) | Not applicable. |
| (b) | The Registrant has not had any change in the portfolio managers identified in response to paragraph (a)(1) of this item in the Registrant’s most recent annual report on Form N-CSR. |
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
None.
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.
| (a) | The Fund did not engage in any securities lending activity during the fiscal year ended October 31, 2023. |
| (b) | The Fund did not engage in any securities lending activity and did not engage a securities lending agent during the fiscal year ended October 31, 2023. |
Item 13. Exhibits.
(a)(1) Not applicable.
(a)(3) Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
COHEN & STEERS TAX-ADVANTAGED PREFERRED SECURITIES AND INCOME FUND
| By: | /s/ James Giallanza | |||
| Name: James Giallanza Title: Principal Executive Officer (President and Chief Executive Officer) | ||||
| Date: July 8, 2024 | ||||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| By: | /s/ James Giallanza | |||
| Name: James Giallanza Title: Principal Executive Officer (President and Chief Executive Officer) | ||||
| By: | /s/ Albert Laskaj | |||
| Name: Albert Laskaj Title: Principal Financial Officer (Treasurer and Chief Financial Officer) | ||||
| Date: July 8, 2024 | ||||