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Cohen & Steers offers preferred securities as bond alternative

Global_chartsUS investment management firm Cohen & Steers is to launch a global preferred securities fund through its Luxembourg Ucits platform later this month.

The firm’s Sicav Global Preferred Securities Fund, to be launched on May 15, will aim to provide high income and capital appreciation by investing in a global portfolio of retail exchange-listed and institutional over-the-counter preferred and debt securities.

Preferred securities – also known as capital securities or hybrids – act like bonds, paying a fixed or floating rate of income but are actually a form of equity for issuers and lie between common stock and senior debt in a company’s capital structure.

Robert Steers, the firm’s chief executive, said: “With the outlook for fixed income uncertain, demand for alternative income strategies is rising and the fund offers investors a distinctive solution to meet their portfolio needs.”

New York-based Cohen & Steers said its US-based Preferred Securities and Income Fund was the largest actively managed preferred securities fund in the world.

The Luxembourg launch is part of the firm’s plan to bring its capability in alternative income and real assets to European and other investors worldwide, Steers said.

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