Cohen & Steers Preferred Securities and Income Fund
CLASS I (CPXIX) SHARES
280 PARK AVENUE
NEW YORK, NEW YORK 10017
PROSPECTUS
Advisor
Cohen & Steers Capital Management, Inc.
280 Park Avenue
New York, New York 10017
Telephone: (212) 832-3232
Transfer Agent
Boston Financial Data Services
P.O. Box 8123
Boston, Massachusetts 02266-8123
Telephone: (800) 437-9912
THE SECURITIES AND EXCHANGE
COMMISSION HAS NOT APPROVED OR DISAPPROVED OF THE FUNDS SHARES OR DETERMINED WHETHER THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANYONE WHO INDICATES OTHERWISE IS COMMITTING A CRIME.
MAY 1, 2013, as amended JUNE 24, 2013
TABLE OF CONTENTS
COHEN & STEERS PREFERRED SECURITIES AND INCOME FUND, INC.
SUMMARY SECTION
INVESTMENT OBJECTIVE
The investment objective of Cohen & Steers Preferred Securities and Income Fund, Inc. (the Fund) is to seek total return (high current income and capital appreciation).
FUND FEES AND EXPENSES
This table describes the fees and expenses that you could pay if you buy and hold shares of the Fund.
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Shareholder Fees
(fees paid directly from your investment):
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None
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Annual Fund Operating Expenses
(expenses that you pay each year as a
percentage of the value of your
investment):
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Management Fee
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0.70%
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Other Expenses
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0.16%
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Service Fee
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0.01%
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Total Annual Fund Operating Expenses
(1)
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0.87%
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Fee Waiver / Expense Reimbursement
(1)
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(0.12)%
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Total Annual Fund Operating Expenses (after fee waiver/expense
reimbursement)
(1)
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0.75%
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(1)
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Cohen & Steers Capital Management, Inc., the Funds investment advisor (the Advisor), has contractually agreed to waive, through June 30, 2014, the
Funds total annual Fund operating expenses (excluding acquired fund fees and expenses and extraordinary expenses) at 0.75% for the Class I shares. This contractual agreement can be amended at any time by agreement of the Fund and the
Advisor and will terminate automatically in the event of termination of the investment advisory agreement between the Advisor and the Fund.
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E
XAMPLE
The example below is
intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem your shares at the end of those
periods. The example also assumes that your investment has a 5% return each year and that the Funds operating expenses remain the same and that the Advisor did not waive its fee and/or reimburse expenses after June 30, 2014 (through June 30,
2014, expenses are based on the net amount pursuant to the fee waiver/expense reimbursement agreement). Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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1 Year
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3 Years
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5 Years
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10 Years
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Class I shares
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$
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77
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$
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263
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$
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468
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$
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1,060
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P
ORTFOLIO
T
URNOVER
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 39% of the average value of its portfolio.
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PRINCIPAL INVESTMENT STRATEGIES
Under normal market conditions, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in a portfolio of preferred
and debt securities issued by U.S. and non-U.S. companies, including traditional preferred securities; hybrid preferred securities that have investment and economic characteristics of both preferred stock and debt securities; floating rate
preferred securities; corporate debt securities; convertible securities; and securities of other open-end, closed-end or exchange-traded funds that invest primarily in preferred and/or debt securities as described herein. Certain
securities in which the Fund may invest are only eligible for resale pursuant to Rule 144A under the Securities Act of 1933, as amended (Securities Act) (referred to as Rule 144A Securities).
The Fund also will invest at least 25% of its net assets in the financials sector, which is comprised of the bank, diversified financials, real estate (including real estate investment trusts
(
REITs)) and insurance industries. From time to time, the Fund may have 25% of its net assets invested in any one of these industries. In addition, the Fund also may focus its investments in other sectors or industries, such as (but not
limited to) energy, industrials, utilities, pipelines, health care and telecommunications. The Advisor retains broad discretion to allocate the Funds investments across various sectors and industries.
The Fund may invest without limit in securities of non-U.S. companies, which may be non-U.S. dollar denominated, including up to 15% of the Funds
net assets in securities issued by companies domiciled in emerging market countries. Typically, emerging markets are in countries that are in the process of industrialization, with lower gross national products per capita than more developed
countries.
The Fund may invest in investment grade as well as below investment grade securities and, although not required to do so, will
generally seek to maintain a minimum weighted average senior debt rating of companies in which it invests of BBB-. Although a companys senior debt rating may be BBB-, an underlying security issued by such company in which the Fund invests may
have a lower rating than BBB-. Below investment grade securities are also known as high yield or junk securities. The maturities of debt securities in which the Fund will invest generally will be longer-term (ten years or
more); however, as a result of changing market conditions and interest rates, the Fund may also invest in shorter-term debt securities.
The
Fund is authorized to purchase, sell or enter into any derivative contract or option on a derivative contract, transaction or instrument, without limitation, including various interest rate transactions such as swaps, caps, floors or collars, and
foreign currency transactions, such as foreign currency forward contracts, foreign currency futures contracts, options, swaps and other similar strategic transactions in connection with its investments in securities of non-U.S. companies. The
Funds primary use of derivative contracts will be to enter into interest rate and currency hedging transactions in order to reduce the interest rate risk and foreign currency risk inherent in the Funds investments.
The Fund is non-diversified and as a result may invest a relatively high percentage of its assets in a limited number of issuers. As a result, changes in
the value of a single investment could cause greater fluctuations in the Funds share price than would occur in a more diversified fund.
PRINCIPAL RISKS
Investment Risk
. An investment in the Fund is subject to investment risk, including the possible loss of the entire principal
amount that you invest.
Market Risk
. Your investment in Fund shares represents an indirect investment in the securities owned by the
Fund. The value of these securities, like other investments, may move up or down, sometimes
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rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions.
Preferred Securities Risk
. There are various risks associated with investing in preferred securities, including credit risk, interest
rate risk, deferral and omission of distributions, subordination to bonds and other debt securities in a companys capital structure, call, reinvestment and income risk, limited liquidity, limited voting rights and special redemption rights.
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Deferral and Omission Risk
. Preferred securities may include provisions that permit the issuer, at its discretion, to defer or omit
distributions for a stated period without any adverse consequences to the issuer.
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Credit and Subordination Risk
. Credit risk is the risk that a security in the Funds portfolio will decline in price or the issuer of the
security will fail to make dividend, interest or principal payments when due because the issuer experiences a decline in its financial status. Preferred securities are generally subordinated to bonds and other debt instruments in a companys
capital structure in terms of having priority to corporate income, claims to corporate assets and liquidation payments, and therefore will be subject to greater credit risk than more senior debt instruments.
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Interest Rate Risk.
Interest rate risk is the risk that preferred securities will decline in value because of changes in market interest rates.
When market interest rates rise, the market value of such securities generally will fall. Preferred securities with longer periods before maturity may be more sensitive to interest rate changes.
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Call, Reinvestment and Income Risk.
During periods of declining interest rates, an issuer may be able to exercise an option to redeem its issue
at par earlier than scheduled which is generally known as call risk. Recent regulatory changes may increase call risk with respect to certain types of preferred securities. If this occurs, the Fund may be forced to reinvest in lower yielding
securities. This is known as reinvestment risk. Another risk associated with a declining interest rate environment is that the income from the Funds portfolio may decline over time when the Fund invests the proceeds from new share sales at
market interest rates that are below the portfolios current earnings rate.
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Liquidity Risk
. Certain preferred securities may be substantially less liquid than many other securities, such as common stocks or U.S.
Government securities. Illiquid securities involve the risk that the securities will not be able to be sold at the time desired by the Fund or at prices approximating the value at which the Fund is carrying the securities on its books.
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Limited Voting Rights Risk
. Generally, traditional preferred securities offer no voting rights with respect to the issuer unless preferred
dividends have been in arrears for a specified number of periods, at which time the preferred security holders may elect a number of directors to the issuers board. Generally, once all the arrearages have been paid, the preferred security
holders no longer have voting rights. Hybrid-preferred security holders generally have no voting rights.
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Special Redemption Rights Risk
. In certain varying circumstances, an issuer of preferred securities may redeem the securities prior to a
specified date. For instance, for certain types of preferred securities, a redemption may be triggered by a change in U.S. federal income tax or securities laws. As with call provisions, a redemption by the issuer may negatively impact the return of
the security held by the Fund.
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Regulatory Risk
. Recent regulatory changes may adversely affect the performance of certain preferred securities. The potential impact of these
new regulations on preferred securities and the Funds ability to pursue its investment objective through such instruments is unclear at this time. Such
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regulatory changes may increase issuers incentives to call or redeem a security prior to a specified date. Furthermore, from time to time, preferred securities have been, and may in the
future be, offered having features other than those described herein.
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Debt Securities Risk
. Debt securities generally
present various risks, including interest rate risk, which is the risk that bond prices will decline because of rising interest rates, and credit risk, which is the chance that the issuer of a debt security will fail to timely pay interest and
principal or that a debt securitys price declines because of negative perceptions of an issuers ability to pay interest and principal.
Concentration in the Financials Sector Risk
. Because the Fund invests at least 25% of its net assets in the financials sector, it will be more susceptible to adverse economic or regulatory
occurrences affecting this sector, such as changes in interest rates, loan concentration and competition.
Foreign (Non-U.S.) and Emerging
Market Securities Risk
. Risks of investing in foreign securities, which can be expected to be greater for investments in emerging markets, include currency risks, future political and economic developments and possible imposition of foreign
withholding taxes on income payable on the securities. In addition, there may be less publicly available information about a foreign issuer than about a domestic issuer, and foreign issuers may not be subject to the same accounting, auditing and
financial recordkeeping standards and requirements as domestic issuers.
Securities of companies in emerging markets may be more volatile than
those of companies in more developed markets. Emerging market countries generally have less developed markets and economies and in some countries, less mature governments and governmental institutions. Investing in securities of companies in
emerging markets may entail special risks relating to potential economic, political or social instability and the risks of expropriation, nationalization, confiscation or the imposition of restrictions on foreign investment, the lack of hedging
instruments, and repatriation of capital invested. The securities and real estate markets of some emerging market countries have in the past sometimes experienced substantial market disruptions and may do so in the future. The economies of many
emerging countries may be heavily dependent on international trade and, accordingly have been and may continue to be adversely affected by trade barriers, exchange controls managed adjustments in relative currency values and other protectionist
measures imposed or negotiated by the countries with which they wish to trade.
Below Investment Grade Securities Risk
. Below investment
grade securities, or equivalent unrated securities, generally involve greater volatility of price and risk of loss of income and principal, and may be more susceptible to real or perceived adverse economic and competitive industry conditions than
higher grade securities. It is reasonable to expect that any adverse economic conditions could disrupt the market for below investment grade securities, have an adverse impact on the value of those securities and adversely affect the ability of the
issuers of those securities to repay principal and interest on those securities.
Foreign Currency Risk.
Although the Fund will
report its net asset value (NAV) and pay dividends in U.S. dollars, foreign securities often are purchased with and make any dividend and interest payments in foreign currencies. Therefore, the Funds investments in foreign securities will be
subject to foreign currency risk, which means that the Funds NAV could decline solely as a result of changes in the exchange rates between foreign currencies and the U.S. dollar. Certain foreign countries may impose restrictions on the ability
of issuers of foreign securities to make payment of principal, dividends and interest to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. The Fund may, but is not required to, engage in various
investments that are designed to hedge the Funds foreign currency risks, and such investments are subject to the risks described under Derivatives and Hedging Transactions Risk below.
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Derivatives and Hedging Transactions Risk
. The use of derivatives, including for the purpose of
hedging interest rate or foreign currency risks, presents risks different from, and possibly greater than, the risks associated with investing directly in traditional securities. Among the risks presented are counterparty risk, financial leverage
risk, liquidity risk, over-the-counter trading risk and tracking risk. The use of derivatives can lead to losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of
the derivatives.
Recent legislation has called for a new regulatory framework for the derivatives market. The impact of the new regulations
are still unknown, but has the potential to increase the costs of using derivatives, may limit the availability of some forms of derivatives or the Funds ability to use derivatives, and may adversely affect the performance of some derivative
instruments used by the Fund as well as the Funds ability to pursue its investment objective through the use of such instruments.
Rule 144A Securities Risk.
Rule 144A Securities are considered restricted securities because they are not registered for sale to the general public
and may only be resold to certain qualified institutional buyers. Institutional markets for Rule 144A Securities that exist or may develop may provide both readily ascertainable values for such securities and the ability to promptly sell such
securities. However, if there are an insufficient number of qualified institutional buyers interested in purchasing Rule 144A Securities held by the Fund, the Fund will be subject to liquidity risk and thus may not be able to sell the Rule 144A
Securities at a time desired by the Fund or at prices approximating the value at which the Fund is carrying the securities on its books.
Non-Diversification Risk
. As a non-diversified investment company, the Fund can invest in fewer individual companies than a diversified
investment company. Because a non-diversified portfolio is more likely to experience large market price fluctuations, the Fund may be subject to a greater risk of loss than a fund that has a diversified portfolio.
Your investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
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FUND PERFORMANCE
The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Funds
performance from year to year for the Funds Class I shares. The table shows how the Funds average annual returns compare with the performance of selected broad market indexes over various time periods. Past performance (both before and
after taxes) is not, however, an indication as to how the Fund may perform in the future. Updated performance is available at www.cohenandsteers.com or by calling (800) 330-7348.
Class I Shares
Annual Total Returns
Highest quarterly return during this period: 10.52% (quarter ended
September 30, 2010)
Lowest quarterly return during this period: 5.11% (quarter ended
September 30, 2011)
Average Annual Total Returns
(for the periods ended December 31, 2012)
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1 Year
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Since
Inception
(3)
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Class I Shares
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Return Before Taxes
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22.52%
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13.17%
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Return After Taxes on Distributions
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20.43%
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11.28%
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Return After Taxes on Distributions and Sale of Fund Shares
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15.29%
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10.35%
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BofA Merrill Lynch Fixed Rate Preferred Securities Index (reflects no deduction for fees, expenses or
taxes)
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13.60%
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9.51%
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Blended Benchmark (reflects no deduction for fees, expenses or taxes)
(1)
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17.40%
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9.92%
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S&P 500
®
Index (reflects no deduction for fees, expenses or taxes)
(2)
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16.00%
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8.95%
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(1)
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Blended benchmark consists of 50% BofA Merrill Lynch Fixed Rate Preferred Securities Index and 50% BofA Merrill Lynch US Capital Securities Index. The BofA Merrill
Lynch Fixed Rate Preferred Securities Index tracks the performance of fixed-rate U.S. dollar-denominated preferred securities issued in the U.S. domestic market. Qualifying securities must be rated investment grade (based on an average of
Moodys, S&P and Fitch) and must have an investment-grade-rated country of risk (based on an average of Moodys, S&P and Fitch foreign currency long-term sovereign debt ratings). The BofA Merrill Lynch US Capital Securities Index
is a subset of The BofA Merrill Lynch US Corporate Index including all fixed-to-floating rate, perpetual callable and capital securities.
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The S&P 500 Index is an unmanaged index of common stocks that is frequently used as a general measure of stock market performance. Performance figures include
reinvestment of income dividends and, for the Fund, capital gains distributions. You should note that the Fund is a professionally managed mutual fund while the indexes are unmanaged, do not incur expenses and are not available for investment.
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(3)
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The inception date was May 3, 2010.
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After-tax returns are calculated using the historical highest individual federal marginal income tax rates,
and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investors tax situation and may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through
tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
INVESTMENT MANAGEMENT
Advisor
Cohen & Steers Capital Management, Inc. (the Advisor)
Portfolio Managers
The Funds
portfolio managers are:
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Joseph M. Harvey
Vice President of the Fund. Mr. Harvey has been a portfolio manager of the Fund since inception.
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William F. Scapell
Vice President of the Fund. Mr. Scapell has been a portfolio manager of the Fund since inception.
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PURCHASE AND SALE OF FUND SHARES
You may open an account with the Fund
with a minimum investment of $100,000. If you are a registered advisor, you may open a Class I account with the Fund with an aggregate minimum investment of $100,000.
You may purchase, redeem or exchange shares of the Fund on any business day, which is any day the New York Stock Exchange (NYSE) is open for business, by written request, wire transfer (call
(800) 437-9912 for instructions) or telephone. You may purchase, redeem or exchange shares of the Fund either through a financial intermediary or directly through Cohen & Steers Securities, LLC, the Funds distributor (the
Distributor). For accounts opened directly through the Distributor, a completed and signed Subscription Agreement is required for the initial account opened with the Fund.
Please mail the signed Subscription Agreement to:
Boston Financial Data Services
Cohen & Steers Funds
P.O. Box 8123
Boston, MA 02266-8123
Phone: (800) 437-9912
TAX INFORMATION
The Funds distributions are taxable as ordinary income or capital gains up to the extent of the Funds current and accumulated
earnings and profits, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account.
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PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and/or its Advisor or Distributor may pay the intermediary for the sale of Fund shares
and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial adviser to recommend the Fund over another investment. Ask your individual financial adviser
or visit your financial intermediarys Web site for more information.
WHO SHOULD INVEST
The Fund may be suitable for you if you are seeking:
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an actively managed preferred security investment strategy;
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to diversify your portfolio with an allocation to preferred securities; and
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a fund offering the potential for both high current income and capital appreciation.
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The Fund is designed for long-term investors. Investment in the Fund involves risk. You should not invest in the Fund unless your investment horizon is at
least two months. An investment in the Fund does not represent a complete investment program. The Fund will take reasonable steps to identify and reject orders from market timers.
INVESTMENT OBJECTIVE, PRINCIPAL INVESTMENT STRATEGIES AND RELATED RISKS
OBJECTIVE
The investment objective of the Fund is to seek total return. There can be no assurance that the Fund will achieve its investment objective. The Fund may
change its investment objective without shareholder approval, although it has no current intention to do so. Shareholders will be provided with at least 60 days prior written notice of any change to the Funds investment objective. In
pursuing its investment objective, the Fund seeks high current income and capital appreciation.
PRINCIPAL INVESTMENT
STRATEGIES
The Fund pursues its objective primarily by investing in issues of preferred and debt securities believed to be undervalued
relative to credit quality and other investment characteristics. In making this determination, the Advisor evaluates the fundamental characteristics of an issuer, including an issuers creditworthiness, and also takes into account prevailing
market factors. In analyzing credit quality, the Advisor considers not only fundamental analysis, but also an issuers corporate and capital structure and the placement of the preferred or debt securities within that structure. In evaluating
relative value, the Advisor also takes into account call, conversion and other structural security features, in addition to such factors as the likely directions of credit ratings and relative value versus other income security classes.
The following are the Funds principal investment strategies. A more detailed description of the Funds investment policies and
restrictions and more detailed information about the Funds investments are contained in the Funds statement of additional information (the SAI).
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Under normal market conditions, the Fund invests at least 80% of its net assets (plus any borrowings for
investment purposes) in a portfolio of
preferred and debt securities
issued by U.S. and non-U.S. companies, including:
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Traditional preferred securities;
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Hybrid-preferred securities;
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Floating rate preferred securities;
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Corporate debt securities;
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Convertible securities; and
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Securities of other open-end, closed-end or exchange-traded funds that invest primarily in preferred or debt securities as described herein.
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These preferred and debt securities may be across a wide range of sectors and industries.
Preferred Securities
There are two basic
types of preferred securities, traditional preferred securities and hybrid-preferred securities. Traditional preferred securities may be issued by an entity taxable as a corporation and pay fixed or floating rate dividends. However, these claims are
subordinated to more senior creditors, including senior debt holders. Preference means that a company must pay dividends on its preferred securities before paying any dividends on its common stock, and the claims of preferred securities
holders are ahead of common stockholders claims on assets in a corporate liquidation. Holders of preferred securities usually have no right to vote for corporate directors or on other matters. Preferred securities share many investment
characteristics with both common stock and bonds; therefore, the risks and potential rewards of investing in the Fund may at times be similar to the risks of investing in both equity funds and bond funds.
Hybrid-preferred securities are debt instruments that have characteristics similar to those of traditional preferred securities. Hybrid preferred
securities may be issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics, or by an affiliated trust or partnership of the corporation, generally in the form of preferred interests in
subordinated debentures or similarly structured securities. The hybrid-preferred securities market consists of both fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates. Hybrid preferred
holders generally have claims to assets in a corporate liquidation that are senior to those of traditional preferred securities but subordinate to those of senior debt holders. Certain subordinated debt and senior debt issues that have preferred
characteristics are also considered to be part of the broader preferred securities market.
The Fund intends to invest in both OTC and
exchange-traded preferred securities. OTC issues are often referred to in the industry as capital securities.
Floating rate
preferred securities provide for a periodic adjustment in the interest rate paid on the securities. The terms of such securities provide that interest rates are adjusted periodically based upon an interest rate adjustment index. The adjustment
intervals may be regular, and range from daily up to annually, or may be event-based, such as a change in the short-term interest rate. Because of the interest rate reset feature, floating rate securities provide the Fund with a certain degree of
protection against rising interest rates, although the interest rates of floating rate securities will participate in any declines in interest rates as well.
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Debt Securities
Debt securities in which the Fund may invest include corporate debt securities issued by U.S. and non-U.S. corporations, including U.S. dollar-denominated debt obligations issued or guaranteed by U.S.
corporations, U.S. dollar-denominated obligations of foreign issuers and debt obligations denominated in foreign currencies. Such debt obligations include, among others, bonds, notes, debentures and variable rate demand notes, with the primary
difference being their maturities and secured or unsecured status. Such corporate debt securities are fixed-income securities issued by businesses to finance their operations. The issuer pays the investor a fixed or variable rate of interest and
normally must repay the amount borrowed on or before maturity.
Convertible Securities
Convertible securities are hybrid securities that combine the investment characteristics of bonds and common stocks. Convertible securities typically
consist of debt or perpetual preferred securities that may be converted within a specified period of time into a certain amount of common stock or other equity security of the same or a different issuer at a predetermined price. In some cases,
conversion may be mandatory. They also include debt securities with warrants or common stock attached and hybrid and synthetic securities combining the features of debt securities and equity securities. Convertible securities entitle the holder to
receive interest paid or accrued on debt, or dividends paid or accrued on preferred stock, until the security matures or is redeemed, converted or exchanged.
Convertible securities also include contingent capital securities (sometimes referred to as CoCos). These securities provide for mandatory conversion into common shares of the issuer
under certain circumstances. The mandatory conversion might relate, for instance, to maintenance of a capital minimum, whereby falling below the minimum would trigger automatic conversion. Since the common stock of the issuer may not pay a dividend,
investors in these instruments could experience a reduced income rate, potentially to zero and conversion would deepen the subordination of the investor (worsening standing in a bankruptcy). In addition, some such instruments have a set stock
conversion rate that would cause an automatic write-down of capital if the price of the stock is below the conversion price on the conversion date.
Investment Grade and Below Investment Grade Securities
The Fund may invest in investment
grade as well as below investment grade securities and, although not required to do so, will generally seek to maintain a minimum weighted average senior debt rating of companies in which it invests of BBB-. The determination of whether a security
is deemed investment grade or below investment grade will be determined at the time of investment. A security will be considered to be investment grade if it is rated as such by one nationally recognized statistical rating organization (NRSRO) (for
example minimum Baa3 or BBB- by Moodys or S&P) or, if unrated, is judged to be investment grade by the Advisor. Although a companys senior debt rating may be BBB-, an underlying security issued by such company in which the Fund
invests may have a lower rating than BBB-. Below investment grade quality securities, or securities that are unrated but judged to be below investment grade by the Advisor, are commonly referred to as high yield or junk
securities and are regarded as having more speculative characteristics with respect to the payment of interest and repayment of principal.
The
maturities of debt securities in which the Fund will invest generally will be longer-term (ten years or more); however, as a result of changing market conditions and interest rates, the Fund may also invest in shorter-term debt securities.
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Concentration in Financials Sector
The Fund also will invest at least 25% of its net assets in the financials sector, which is comprised of the bank, diversified financials, real estate (including REITs) and insurance industries. From time
to time, the Fund may have 25% of its net assets invested in any one of these industries. In addition, the Fund also may focus its investments in other sectors or industries, such as (but not limited to) energy, industrials, utilities, pipelines,
health care and telecommunications. The Advisor retains broad discretion to allocate the Funds investments across various sectors and industries.
Foreign (Non-U.S.) Securities and Depositary Receipts
The Fund may invest without limit in
securities of non-U.S. companies, including 15% in securities of companies domiciled in emerging markets. Many foreign companies issue both foreign currency and U.S. dollar-denominated preferred and debt securities. Those securities that are traded
in the United States have characteristics that are similar to traditional and hybrid preferred securities.
The Fund may also invest in
securities of foreign companies in the form of American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) and European Depositary Receipts (EDRs). Generally, ADRs in registered form are dollar denominated securities designed for use in
the U.S. securities markets, which represent and may be converted into an underlying foreign security. GDRs, in bearer form, are designed for use outside the United States. EDRs, in bearer form, are designed for use in the European securities
markets.
Derivatives and Hedging Transactions
The Fund is authorized to purchase, sell or enter into any derivative contract or option on a derivative contract, transaction or instrument including, without limitation, various interest rate
transactions such as swaps, caps, floors or collars, and foreign currency transactions, such as foreign currency forward contracts, futures contracts, options, swaps and other similar transactions in connection with its investments in securities of
non-U.S. companies. The Funds primary use of derivative contracts will be to enter into interest rate hedging transactions in order to reduce the interest rate risk inherent in the Funds investments, and foreign currency hedging
transactions in order to reduce foreign currency exchange rate risks from adverse changes in the relationship between the U.S. dollar and foreign currencies (including to hedge against anticipated future changes which otherwise might adversely
affect the prices of securities that the Fund intends to purchase at a later date). Derivative instruments, or derivatives, include instruments and contracts which are derived from and are valued in relation to one or more underlying
interest rates, currencies, securities, financial benchmarks or indexes and include, without limitation, swap agreements (including credit default swaps), futures contracts, forward contracts, options on futures or forward contracts, and listed or
OTC put or call options on, or linked to the value of, any security, index or basket of securities, commodity or index or basket of commodities or other reference asset. Derivatives typically allow an investor to hedge or speculate upon the price
movements of a particular interest rate, currency, security, financial benchmark or index at a fraction of the cost of acquiring, borrowing or selling short the underlying asset. The value of a derivative depends largely upon price movements in the
underlying asset.
An interest rate swap involves the exchange of cash flows based on interest rate specifications and a specified principal
amount, often a fixed payment for a floating payment that is linked to an interest rate. In an interest rate cap, one party receives payments at the end of each period in which a specified interest rate on a specified principal amount exceeds an
agreed rate; conversely, in an interest rate floor one party may receive payments if a specified interest rate on a specified principal amount falls below an agreed rate. Interest rate collars involve selling a cap and purchasing a floor, or vice
versa, to protect a fund against interest rate movements exceeding given minimum or maximum levels.
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A foreign currency forward contract is an obligation to purchase or sell a specific currency for an agreed
price on a future date which is individually negotiated and privately traded by currency traders and their customers. A foreign currency futures contract is an exchange-traded contract for the purchase or sale of a specified foreign currency at a
specified price at a future date. A foreign currency swap is an agreement between two parties to exchange principal and interest payments on a loan made in one currency for principal and interest payments of a loan of equal value in another
currency. The Fund may enter into a foreign currency forward contract, foreign currency futures contract or foreign currency swap, or purchase a currency option, for example, when it enters into a contract for the purchase or sale of a security
denominated in a foreign currency or expects to receive a dividend or interest payment on a portfolio holding, in order to lock in the U.S. dollar value of the security or payment. In addition, the Fund may enter into a foreign currency
forward contract, futures contract or swap or purchase a currency option in respect of a currency which acts as a proxy for a currency in which the Funds portfolio holdings or anticipated holdings are denominated. This second investment
practice is generally referred to as cross-hedging. The Fund may also conduct its foreign currency exchange transactions on a spot (
i.e.
cash) basis at the spot rate prevailing in the foreign currency exchange market.
To the extent any derivatives would be deemed to be illiquid, they will be included in the Funds maximum limitation of 15% of net assets invested in
illiquid securities.
Rule 144A Securities
Certain securities in which the Fund may invest are Rule 144A Securities. Rule 144A Securities are considered restricted securities because they are not registered for sale to the general public and may
only be resold to certain qualified institutional buyers.
PRINCIPAL RISKS OF INVESTING IN THE FUND
Investment Risk
An investment in the Fund is subject to investment risk, including the
possible loss of the entire principal amount that you invest.
Market Risk
Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and
unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions.
Preferred Securities Risk
There are special risks associated with investing in preferred
securities, including:
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Deferral and Omission Risk
. Preferred securities may include provisions that permit the issuer, at its discretion, to defer or omit
distributions for a stated period without any adverse consequences to the issuer. In certain cases, deferring or omitting distributions may be mandatory. If the Fund owns a preferred security that is deferring its distributions, the Fund may be
required to report income for tax purposes although it has not yet received such income.
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Credit and Subordination Risk
. Credit risk is the risk that a security in the Funds portfolio will decline in price or the issuer of the
security will fail to make dividend, interest or principal payments when due because the issuer experiences a decline in its financial status. Preferred securities are
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generally subordinated to bonds and other debt instruments in a companys capital structure in terms of having priority to corporate income, claims to corporate assets and liquidation
payments, and therefore will be subject to greater credit risk than more senior debt instruments.
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Interest Rate Risk.
Interest rate risk is the risk that preferred securities will decline in value because of changes in market interest rates.
When market interest rates rise, the market value of such securities generally will fall. Preferred securities with longer periods before maturity may be more sensitive to interest rate changes.
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Call, Reinvestment and Income Risk.
During periods of declining interest rates, an issuer may be able to exercise an option to redeem its issue
at par earlier than scheduled which is generally known as call risk. If this occurs, the Fund may be forced to reinvest in lower yielding securities. This is known as reinvestment risk. Preferred securities frequently have call features that allow
the issuer to repurchase the security prior to its stated maturity. An issuer may redeem an obligation if the issuer can refinance the debt at a lower cost due to declining interest rates or an improvement in the credit standing of the issuer, or in
the event of regulatory changes affecting the capital treatment of a security. Another risk associated with a declining interest rate environment is that the income from the Funds portfolio may decline over time when the Fund invests the
proceeds from new share sales at market interest rates that are below the portfolios current earnings rate.
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Liquidity Risk
. Certain preferred securities may be substantially less liquid than many other securities, such as common stocks or U.S.
Government securities. Illiquid securities involve the risk that the securities will not be able to be sold at the time desired by the Fund or at prices approximating the value at which the Fund is carrying the securities on its books.
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Limited Voting Rights Risk
. Generally, traditional preferred securities offer no voting rights with respect to the issuer unless preferred
dividends have been in arrears for a specified number of periods, at which time the preferred security holders may elect a number of directors to the issuers board. Generally, once all the arrearages have been paid, the preferred security
holders no longer have voting rights. Hybrid-preferred security holders generally have no voting rights.
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Special Redemption Rights Risk
. In certain varying circumstances, an issuer of preferred securities may redeem the securities prior to a
specified date. For instance, for certain types of preferred securities, a redemption may be triggered by a change in U.S. federal income tax or securities laws. As with call provisions, a redemption by the issuer may negatively impact the return of
the security held by the Fund.
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Dividends from certain preferred securities may not be eligible for the corporate
dividends-received deduction or for treatment as qualified dividend income. See Additional InformationTax Considerations.
Debt
Securities Risks
There are special risks associated with investing in debt securities, including:
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Credit Risk
. Credit risk refers to the possibility that the issuer of a security will not be able to make payments of interest and principal
when due because the issuer of the security experiences a decline in its financial status. Changes in an issuers credit rating or the markets perception of an issuers creditworthiness may also affect the value of the Funds
investment in that issuer.
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Interest Rate Risk.
Interest rate risk is the risk that debt securities will decline in value because of changes in market interest rates. When
market interest rates rise, the market value of such securities generally will fall. Debt securities with longer periods before maturity may be more sensitive to interest rate changes.
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Call Risk.
Call risk is the risk that, during a period of falling interest rates, the issuer may redeem a security by repaying it early, which
may reduce the Funds income if the proceeds are reinvested at lower interest rates.
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Extension Risk
. When interest rates rise, certain obligations will be paid off by the obligor more slowly than anticipated, causing the value of
these securities to fall.
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Liquidity
Risk
. Certain debt securities may be substantially less liquid than many other securities, such as common stocks or U.S.
Government securities. Illiquid securities involve the risk that the securities will not be able to be sold at the time desired by the Fund or at prices approximating the value at which the Fund is carrying the securities on its books.
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Prepayment Risk
. When interest rates fall, certain obligations will be paid off by the obligor more quickly than originally anticipated, and the
Fund may have to invest the proceeds in securities with lower yields.
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Convertible Securities Risk
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The market value of a convertible security performs like that of a regular debt security; that is, if
market interest rates rise, the value of a convertible security usually falls. In addition, convertible securities are subject to the risk that the issuer will not be able to pay interest or dividends when due, and their market value may change
based on changes in the issuers credit rating or the markets perception of the issuers creditworthiness. Because it derives a portion of its value from the common stock into which it may be converted, a convertible security is also
subject to the same types of market and issuer risk as apply to the underlying common stock.
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Concentration in the
Financials Sector Risk
Because the Fund invests at least 25% of its net assets in the financials sector, it will be more susceptible to
adverse economic or regulatory occurrences affecting this sector, such as changes in interest rates, loan concentration and competition. In many countries, companies in the financials sector are regulated by governmental entities, which can increase
costs for or limit the ability to offer new services or products and make it difficult to pass increased costs on to consumers. In certain areas, deregulation of financial companies has resulted in increased competition and reduced profitability for
certain companies. The profitability of many types of financial companies may be adversely affected in certain market cycles, including periods of rising interest rates, which may restrict the availability and increase the cost of capital, and
declining economic conditions, which may cause credit losses due to financial difficulties of borrowers. Because many types of financial companies are especially vulnerable to these economic cycles, the Funds investments in these companies may
lose significant value during such periods.
Foreign (Non-U.S.) and Emerging Market Securities
Risk
The Fund may invest 100% of its net assets in non-U.S. securities. In addition, the Fund may invest up to 15% of its net assets from securities of
companies in so-called emerging markets (or lesser developed countries). Investments in such securities are particularly speculative. Investing in foreign securities involves certain risks not involved in domestic investments, including,
but not limited to:
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future foreign economic, financial, political and social developments;
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different legal systems;
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the possible imposition of exchange controls or other foreign governmental laws or restrictions;
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less governmental supervision;
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changes in currency exchange rates;
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less publicly available information about companies due to less rigorous disclosure or accounting standards or regulatory practices;
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high and volatile rates of inflation;
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fluctuating interest rates; and
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different accounting, auditing and financial record-keeping standards and requirements.
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Investments in foreign securities, especially in emerging market countries, will expose the Fund to the direct or indirect consequences of political,
social or economic changes in the countries that issue the securities or in which the issuers are located. Certain countries in which the Fund may invest, especially emerging market countries, have historically experienced, and may continue to
experience, high rates of inflation, high interest rates, exchange rate fluctuations, large amounts of external debt, balance of payments and trade difficulties, and extreme poverty and unemployment. Many of these countries are also characterized by
political uncertainty and instability. The cost of servicing external debt will generally be adversely affected by rising international interest rates because many external debt obligations bear interest at rates that are adjusted based upon
international interest rates. In addition, with respect to certain foreign countries, there is a risk of:
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the possibility of expropriation of assets;
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difficulty in obtaining or enforcing a court judgment;
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economic, political or social instability; and
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diplomatic developments that could affect investments in those countries.
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In addition, individual foreign economies may differ favorably or unfavorably from the U.S. economy in such respects as:
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growth of gross domestic product;
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balance of payments position.
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To the extent the Fund has significant investments in a geographic region or country, the Fund will be subject to the risks of adverse changes in that region or country.
To the extent the Funds investments are focused in a geographic region or country, the Fund will be subject, to a greater extent than if the
Funds assets were less geographically focused, to the risks of adverse changes in that region or country. In addition, income from the Funds investments in certain foreign securities also may be subject to foreign withholding taxes,
which would reduce the Funds return on those securities.
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Securities of companies in emerging markets may be more volatile than those of companies in more developed
markets. Emerging market countries generally have less developed markets and economies and, in some countries, less mature governments and governmental institutions. Investing in securities of companies in emerging markets may entail special risks
relating to potential economic, political or social instability and the risks of expropriation, nationalization, confiscation or the imposition of restrictions on foreign investment, the lack of hedging instruments, and repatriation of capital
invested. The securities and real estate markets of some emerging market countries have in the past sometimes experienced substantial market disruptions and may do so in the future. The economies of many emerging market countries may be heavily
dependent on international trade and, accordingly, have been and may continue to be adversely affected by trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by
the countries with which they wish to trade.
As a result of these potential risks, the Advisor may determine that, notwithstanding otherwise
favorable investment criteria, it may not be practicable or appropriate to invest in a particular country. The Fund may invest in countries in which foreign investors, including the Advisor, have had no or limited prior experience.
Below Investment Grade Securities Risk
Below investment grade securities, or equivalent unrated securities, generally involve greater volatility of price and risk of loss of income and
principal, and may be more susceptible to real or perceived adverse economic and competitive industry conditions than higher grade securities. It is reasonable to expect that any adverse economic conditions could disrupt the market for below
investment grade securities, have an adverse impact on the value of those securities and adversely affect the ability of the issuers of those securities to repay principal and interest on those securities. Credit Risk (described above under Debt
Securities Risks) is a particular concern for below investment grade securities.
Foreign Currency Risk
Although the Fund will report its NAV and pay dividends in U.S. dollars, foreign securities typically are purchased with and make any dividend and
interest payments in foreign currencies. Therefore, when the Fund invests in foreign securities, it will be subject to foreign currency risk, which means that the Funds NAV could decline solely as a result of changes in the exchange rates
between foreign currencies and the U.S. dollar. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal, dividends and interest to investors located outside the country, due to
blockage of foreign currency exchanges or otherwise.
The Fund may, but is not required to, engage in various investments that are designed to
hedge the Funds foreign currency risks. Such investments are subject to the risks described under Derivatives and Hedging Transactions Risk below.
The Funds transactions in foreign currencies may increase or accelerate the Funds recognition of ordinary income and it may affect the timing or character of the Funds distributions.
Derivatives and Hedging Transactions Risk
Many of the risks applicable to trading the underlying asset are also applicable to derivatives trading. However, there are a number of additional risks associated with derivatives trading. Transactions
in certain derivatives are subject to clearance on a U.S. national exchange and to regulatory oversight,
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while other derivatives are subject to risks of trading in the OTC markets or on non-U.S. exchanges. Additional risks associated with derivatives trading include:
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Counterparty Risk
. Because derivative transactions in which the Fund may engage may involve instruments that are not traded on an exchange but
are instead traded between counterparties based on contractual relationships, the Fund is subject to the risk that a counterparty will not perform its obligations under the related contracts. Although the Fund intends to enter into transactions only
with counterparties which the Advisor believes to be creditworthy, there can be no assurance that a counterparty will not default and that the Fund will not sustain a loss on a transaction as a result.
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In the event of the counterpartys bankruptcy or insolvency, the Funds collateral may be subject to the conflicting claims of
the counterpartys creditors, and the Fund may be exposed to the risk of a court treating the Fund as a general unsecured creditor of the counterparty, rather than as the owner of the collateral.
The Fund is subject to the risk that issuers of the instruments in which it invests and trades may default on their obligations under
those instruments, and that certain events may occur that have an immediate and significant adverse effect on the value of those instruments. There can be no assurance that an issuer of an instrument in which the Fund invests will not default, or
that an event that has an immediate and significant adverse effect on the value of an instrument will not occur, and that the Fund will not sustain a loss on a transaction as a result.
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Liquidity Risk
. Derivative instruments, especially when traded in large amounts, may not be liquid in all circumstances, so that in volatile
markets the Fund may not be able to close out a position without incurring a loss. In addition, daily limits on price fluctuations and speculative position limits on exchanges on which the Fund may conduct its transactions in derivative instruments
may prevent profitable liquidation of positions, subjecting the Fund to the potential of greater losses.
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Financial Leverage Risk
. Trading in derivative instruments can result in large amounts of financial leverage. Thus, the leverage offered by
trading in derivative instruments will magnify the gains and losses experienced by the Fund and could cause the value of the Funds net assets to be subject to wider fluctuations than would be the case if the Fund did not use the leverage
feature of derivative instruments.
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Over-the-Counter Trading
Risk
. Derivative instruments, such as swap agreements, that may be purchased or sold by the Fund may include
instruments not traded on an exchange. The risk of nonperformance by the counterparty to an instrument may be greater than, and the ease with which the Fund can dispose of or enter into closing transactions with respect to an instrument may be less
than, the risk associated with an exchange traded instrument. In addition, significant disparities may exist between bid and asked prices for derivative instruments that are not traded on an exchange. Derivative instruments
not traded on exchanges also are not subject to the same type of government regulation as exchange traded instruments, and many of the protections afforded to participants in a regulated environment may not be available in connection with the
transactions.
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Tracking
Risk
. When used for hedging purposes, an imperfect or variable degree of correlation between price or rate movements of the
derivative instrument and the underlying investment sought to be hedged may prevent the Fund from achieving the intended hedging effect or expose the Fund to risk of loss.
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Rule 144A Securities Risk.
Institutional markets for Rule 144A Securities that exist or may develop may provide both readily ascertainable values for such securities and the ability to promptly
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securities. However, if there are an insufficient number of qualified institutional buyers interested in purchasing Rule 144A Securities held by the Fund, the Fund will be subject to liquidity
risk and thus may not be able to sell the Rule 144A Securities at a time desired by the Fund or at prices approximating the value at which the Fund is carrying the securities on its books.
Non-Diversification Risk
Because the Fund is non-diversified, the Fund is exposed to
additional market risk. A non-diversified fund may invest a relatively high percentage of its assets in a limited number of issuers. Non-diversified funds are more susceptible to any single political, regulatory or economic occurrence and to the
financial condition of individual issuers in which it invests. The Funds relative lack of diversity may subject investors to greater market risk than other mutual funds.
ADDITIONAL INVESTMENT INFORMATION
In addition to the principal
investment strategies described above, the Fund has other investment practices that are described here and in the Statement of Additional Information (SAI).
Equity Securities
The Fund may invest up to 20% of its net assets in common stocks, which
represent residual ownership interest in issuers and include rights or warrants to purchase common stocks. Holders of common stocks are entitled to the income and increase in the value of the assets and business of the issuers after all debt
obligations and obligations to preferred stockholders are satisfied. Common stocks generally have voting rights. Common stocks fluctuate in price in response to many factors including historical and prospective earnings of the issuer, the value of
the issuers assets, general economic conditions, interest rates, investor perceptions and market liquidity. The value of equity securities purchased by the Fund could decline if the financial condition of the companies the Fund invests in
declines or if overall market and economic conditions deteriorate. The value of such securities also may decline due to factors that affect a particular industry or industries, such as labor shortages or an increase in production costs and
competitive conditions within an industry. In addition, their value may decline due to general market conditions that are not specifically related to a company or industry, such as real or perceived adverse economic conditions, changes in the
general outlook for corporate earnings, changes in interest or currency rates or generally adverse investor sentiment.
Government Securities
The Fund may invest up to 20% of its net assets in government debt securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities or a non-U.S. Government or its agencies or
instrumentalities. Obligations issued or guaranteed by the U.S. Government, its agencies and instrumentalities include bills, notes and bonds issued by the U.S. Treasury, as well as stripped or zero coupon U.S. Treasury
obligations representing future interest or principal payments on U.S. Treasury notes or bonds. Stripped securities are sold at a discount to their face value, and may exhibit greater price volatility than interest-bearing securities
because investors receive no payment until maturity. Other obligations of certain agencies and instrumentalities of the U.S. Government are supported only by the credit of the instrumentality. The U.S. Government may choose not to provide financial
support to U.S. Government-sponsored agencies or instrumentalities if it is not legally obligated to do so, in which case, if the issuer were to default, the Fund might not be able to recover its investment from the U.S. Government.
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Mortgage-and Asset-Backed Securities
The Fund may invest up to 20% of its net assets in mortgage-backed and other asset-backed securities. Mortgage-related securities include mortgage pass-through securities, collateralized mortgage
obligations (CMOs), commercial mortgage-backed securities (CMBSs), mortgage dollar rolls, CMO residuals, stripped mortgage-backed securities (SMBSs) and other securities that directly or indirectly represent a participation in or are secured by and
payable from mortgage loans on real property. These securities may be issued or guaranteed by the U.S. Government or one of its sponsored entities or may be issued by private organizations. One type of SMBS has two classes, with one class receiving
all of the interest from the mortgage assets (the interest-only, or IO class), while the other class will receive the entire principal (the principal-only, or PO class). The yield to maturity on an IO class is extremely sensitive to the rate of
principal payments (including prepayments) on the underlying mortgage assets, and a rapid rate of principal payments may have a material adverse effect on the Funds yield to maturity from these securities.
Other asset-backed securities are structured like mortgage-backed securities, but instead of mortgage loans or interests in mortgage loans, the underlying
assets may include such items as motor vehicle installment sales or installment loan contracts, leases of various types of real and personal property, and receivables from credit card agreements and from sales of personal property. Regular payments
received in respect of such securities include both interest and principal. Asset-backed securities typically have no U.S. Government backing. Additionally, the ability of an issuer of asset-backed securities to enforce its security interest in the
underlying assets may be limited.
If the Fund purchases a mortgage-backed or other asset-backed security at a premium, that portion may be
lost if there is a decline in the market value of the security, whether resulting from changes in interest rates or from prepayments or defaults in the underlying collateral. As with other interest-bearing securities, the prices of such securities
are inversely affected by changes in interest rates. Although the value of a mortgage-backed or other asset-backed security may decline when interest rates rise, the converse is not necessarily true, because in periods of declining interest rates
the mortgages and loans underlying the securities are prone to prepayment, thereby shortening the average life of the security and shortening the period of time over which income at the higher rate is received.
When interest rates are rising, the rate of prepayment tends to decrease, thereby lengthening the period of time over which income at the lower rate is
received. For these and other reasons, a mortgage-backed or other asset-backed securitys average maturity may be shortened or lengthened as a result of interest rate fluctuations and, therefore, it is not possible to predict accurately the
securitys return.
The market for mortgage-backed and asset-backed securities has recently experienced high volatility and a lack of
liquidity. As a result, the value of many of these securities has significantly declined. There can be no assurance that these markets will become more liquid or less volatile, and it is possible that the value of these securities could decline
further.
Municipal Securities
The Fund may invest up to 20% of its net assets in municipal securities, which includes debt obligations of states, territories or possessions of the
United States and the District of Columbia and their political subdivisions, agencies and instrumentalities. Municipal securities are issued to obtain funds for various public purposes, including the construction of a wide range of public facilities
such as airports, bridges, highways, housing, hospitals, mass transportation, schools, streets and water and sewer works. Other public purposes for which municipal securities may be issued include the refunding of outstanding obligations, obtaining
funds for general operating expenses and lending such funds to other public institutions and facilities.
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The two major classifications of municipal securities are bonds and notes. Bonds may be further classified
as general obligation or revenue issues. General obligation bonds are secured by the issuers pledge of its full faith, credit and taxing power for the payment of principal and interest. Revenue bonds are payable from
the revenues derived from a particular facility or class of facilities, and in some cases, from the proceeds of a special excise or other specific revenue source, but not from the general taxing power. Most notes are general obligations of the
issuing municipalities or agencies and are sold in anticipation of a bond sale, collection of taxes or receipt of other revenues. There are, of course, variations in the risks associated with municipal securities, both within a particular
classification and between classifications. Although issued by governments and their agencies and instrumentalities, municipal securities are subject to default risk. The Fund does not anticipate meeting the requirements under the Internal Revenue
Code of 1986, as amended (the Code) to pass through income from municipal securities as tax free to shareholders.
Investments in municipal
securities may be affected significantly by economic, regulatory or political developments affecting the ability of an issuer to pay interest or repay principal. Certain issuers have experienced serious financial difficulties in the past and a
reoccurrence of these difficulties may impair the ability of certain issuers to pay principal or interest on their obligations.
Other
Investment Companies
The Fund may invest in securities of other open- or closed-end investment companies, including registered investment
companies that are exchange-traded funds (ETFs). ETFs trade on a securities exchange and their shares may, at times, trade at a premium or discount to their net asset value. Most ETFs hold a portfolio of common stocks or bonds designed to track the
performance of a securities index, including industry, sector, country and region indexes, but an ETF may not replicate exactly the performance of the index it seeks to track for a number of reasons, including transaction costs incurred by the ETF.
The Fund may also invest a portion of its assets in pooled investment vehicles (other than investment companies). As a stockholder in an
investment company or other pooled vehicle, the Fund will bear its ratable share of that investment companys or vehicles expenses, and would remain subject to payment of the funds or vehicles advisory and administrative fees
with respect to assets so invested. Shareholders would therefore be subject to duplicative expenses to the extent the Fund invests in other investment companies or vehicles. In addition, the securities of other investment companies or pooled
vehicles may be leveraged and will therefore be subject to leverage risks (in addition to other risks of the investment companys or pooled vehicles strategy). The Fund will also incur brokerage costs when purchasing and selling shares of
ETFs.
Illiquid Securities
The Fund will not invest more than 15% of its net assets in illiquid securities. Illiquid securities involve the risk that the securities will not be able
to be sold promptly (
i.e.,
within seven days) at the time desired by the Fund or at prices approximating the value at which the Fund is carrying the securities on its books and records. Restricted securities, which are securities that may not
be resold to the public without an effective registration statement under the Securities Act of 1933, as amended, or, if they are unregistered, may be sold only in a privately negotiated transaction or pursuant to an exemption from registration, may
be illiquid.
Defensive Position
When the Advisor believes that market or general economic conditions justify a temporary defensive position, the Fund may deviate from its investment objective and invest all or any portion of its assets
in
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short-term debt instruments, government securities, cash or cash equivalents. When and to the extent the Fund assumes a temporary defensive position, it may not pursue or achieve its investment
objective.
Portfolio Holdings
A description of the Funds policies and procedures with respect to the disclosure of the Funds portfolio securities is available in the
Funds SAI. The Fund also files its complete schedule of portfolio holdings with the Securities and Exchange Commission (the SEC) on Form N-Q as of the end of its first and third fiscal quarters. The Funds full portfolio holdings are
published semi-annually in reports sent to shareholders and filed with the SEC on Form N-CSR and such reports are made available at www.cohenandsteers.com in the Funds section, generally within 70 days after the end of each semi-annual
period. The Fund also posts an uncertified list of portfolio holdings on the Web site, no earlier than 15 days after the end of each calendar quarter. The holdings information remains available until the Fund files a report on Form N-Q or Form N-CSR
for the period that includes the date as of which the information is current. In addition to information on portfolio holdings, other Fund statistical information may be found on www.cohenandsteers.com or by calling 800-330-7348.
MANAGEMENT OF THE FUND
THE ADVISOR
The Advisor, a registered investment advisor located at 280 Park Avenue, New York, New York 10017, was formed in 1986 and its clients include pension
plans, endowment funds and investment companies, including each of the open-end and closed-end Cohen & Steers funds. As of March 31, 2013, the Advisor managed approximately $49.3 billion in assets. The Advisor is a wholly owned
subsidiary of Cohen & Steers, Inc. (CNS), a publicly traded company whose common stock is listed on the NYSE under the symbol CNS.
Under its investment advisory agreement (the Investment Advisory Agreement) with the Fund, the Advisor furnishes a continuous investment program for the Funds portfolio, makes the day-to-day
investment decisions for the Fund, and generally manages the Funds investments in accordance with the stated policies of the Fund, subject to the general supervision of the Board of Directors of the Fund. The Advisor also performs certain
administrative services for the Fund and provides persons satisfactory to the Board of Directors of the Fund to serve as officers of the Fund. Such officers, as well as certain Directors of the Fund, may also be directors, officers or employees of
the Advisor. The Advisor also selects brokers and dealers to execute the Funds portfolio transactions.
For its services under the
Investment Advisory Agreement, the Fund pays the Advisor a monthly investment advisory fee at the annual rate of 0.70% of the average daily NAV of the Fund. This fee is allocated to the Class I shares based on the Class I shares proportionate
share of such average daily NAV. Taking into account the investment advisory fees waived by the Advisor, the Funds effective investment advisory fee during 2012 was 0.58% of average daily NAV.
In addition to this investment advisory fee, the Fund pays other operating expenses, which may include but are not limited to, administrative, transfer
agency, custodial, legal and accounting fees. The Fund pays the Advisor a monthly fee at the annual rate of 0.05% for administration services.
A discussion regarding the Board of Directors basis for approving the Investment Advisory Agreement is available in the Funds semi-annual
report to shareholders for the period ended June 30, 2012.
21
PORTFOLIO MANAGERS
The Funds portfolio managers are:
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Joseph M. HarveyMr. Harvey is a vice president of the Fund. He joined the Advisor in 1992 and currently serves as president and chief investment
officer of the Advisor and president of CNS.
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William F. ScapellMr. Scapell is a vice president of the Fund. He joined the Advisor in 2003 and currently serves as senior vice president of the
Advisor and CNS. Prior to joining the Advisor, Mr. Scapell was a director in the fixed-income research department of Merrill Lynch & Co., Inc., where he was also its chief strategist for preferred securities. Mr. Scapell is a
Chartered Financial Analyst.
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The Advisor utilizes a team-based approach in managing the Fund. Mr. Harvey is the leader of
this team. Mr. Scapell directs and supervises the execution of the Funds investment strategy, and leads and guides the other members of the investment team. All of the Funds portfolio managers collaborate with respect to the process
for allocating the Funds assets among the various sectors and industries.
The SAI contains additional information about the portfolio
managers compensation, other accounts they manage and their ownership of securities in the Fund.
PRICING OF FUND SHARES
The price at which you can purchase and redeem the Funds Class I shares is the NAV of the shares next determined after we receive your order in proper form. Proper form means that your request
includes the Fund name and account number, states the amount of the transaction (in dollars or shares), includes the signatures of all owners exactly as registered on the account, signature guarantees (if necessary), any supporting legal
documentation that may be required and any outstanding certificates representing shares to be redeemed.
The Fund calculates its NAV per share
as of the close of regular trading on the NYSE, generally 4:00 p.m. eastern time, on each day the NYSE is open for trading. Thus, purchase and redemption orders must be received in proper form by the close of regular trading on the NYSE in
order to receive that days NAV; orders received after the close of regular trading on the NYSE will receive the NAV next determined. The Fund has authorized one or more brokers to accept on its behalf purchase (and redemption) orders, and
these brokers are authorized to designate other intermediaries on the Funds behalf. The Fund will be deemed to have received a purchase (or redemption) order when an authorized broker, or that brokers designee, accepts the order, and
that order will be priced at the next computed NAV after this acceptance. The Fund determines NAV per share for the Class I shares by dividing that classs share of the net assets of the Fund (
i.e
.
, its assets less liabilities) by
the total number of Class I shares then outstanding.
Investments in securities that are listed on the NYSE are valued, except as indicated
below, at the last sale price reflected at the close of the NYSE on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the closing bid and asked prices
for the day or, if no asked price is available, at the bid price.
Securities not listed on the NYSE but listed on other domestic or foreign
securities exchanges are valued in a similar manner. Securities traded on more than one securities exchange are valued at the last sale price on the business day as of which such value is being determined as reflected on the tape at the close
22
of the exchange representing the principal market for such securities. 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 foreign securities may be fair valued pursuant to procedures established by the Board of Directors.
Readily marketable securities traded in the over-the-counter market, including listed securities whose primary market is believed by the Advisor to be over-the-counter, are valued at the official closing
prices as reported by sources as the Board of Directors deem appropriate to reflect their fair market value. If there has been no sale on such day, the securities are valued at the mean of the closing bid and asked prices for the day, or if no asked
price is available, at the bid price. However, certain fixed-income securities may be valued on the basis of prices provided by a pricing service when such prices are believed by the Advisor, pursuant to procedures approved by the Board of
Directors, to reflect the fair market value of such securities.
Securities for which market prices are unavailable, or securities for which
the Advisor determines that bid and/or asked price or a counterparty valuation does not reflect market value, will be valued at fair value pursuant to procedures approved by the Funds Board of Directors. Circumstances in which market prices
may be unavailable include, but are not limited to, when trading in a security is suspended, the exchange on which the security is traded is subject to an unscheduled close or disruption or material events occur after the close of the exchange on
which the security is principally traded. In these circumstances, the Fund determines fair value in a manner that fairly reflects the market value of the security on the valuation date based on consideration of any information or factors it deems
appropriate. These may include recent transactions in comparable securities, information relating to the specific security and developments in the markets.
The Funds 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.
Short-term debt securities, which have a maturity date of 60 days or less, are valued at amortized cost, which approximates value. Investments in open-end mutual funds are valued at their closing NAV.
Because the Fund may hold securities that are primarily listed on foreign exchanges that trade on weekends or days when the Fund does not
price its shares, the value of securities held in the Fund may change on days when you will not be able to purchase or redeem Fund shares.
HOW TO PURCHASE, EXCHANGE AND
SELL FUND SHARES
TYPES OF SHAREHOLDERS QUALIFIED TO PURCHASE CLASS I SHARES
Class I shares are available for purchase only by:
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retirement plans introduced by persons not associated with brokers or dealers that are primarily engaged in the retail securities business and rollover
individual retirement accounts (IRA) from such plans;
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tax-exempt employee benefit plans of the Advisor or its affiliates and securities dealer firms with a selling agreement with the Distributor;
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institutional advisory accounts of the Advisor or its affiliates and related employee benefit plans and rollover IRAs from such institutional advisory
accounts;
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23
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a bank, trust company or similar financial institution investing for its own account or for the account of its trust customers for whom such financial
institution is exercising investment discretion in purchasing Class I shares, except where the investment is part of a program that requires payment to the financial institution of a Rule 12b-1 plan fee;
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registered investment advisors investing on behalf of clients that consist of institutions and/or individuals;
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clients (including individuals, corporations, endowments, foundations and qualified plans) of approved financial intermediaries who charge such clients
an ongoing fee for advisory, investment, consulting or similar services, or who have entered into an agreement with the Distributor to offer Class I shares through an omnibus account, no-load network or platform;
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investors who purchase through certain wrap programs, fee based advisory programs, asset allocation program and similar programs with
approved financial intermediaries;
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current officers, directors and employees (and their immediate families) of the Fund, the Advisor, CNS, the Distributor, and to any trust, pension,
profit-sharing or other benefit plan for only such persons; and
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investors having a direct relationship with the Advisor or its affiliates.
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PURCHASE MINIMUMS
You may open an account with the Fund with a minimum
investment of $100,000. If you are a registered advisor, you may open a Class I account with the Fund with an aggregate minimum investment of $100,000. The Fund reserves the right to waive or change its minimum investment requirements.
HOW TO PURCHASE FUND SHARES
F
ORM
OF
P
AYMENT
We will accept payment for shares in two forms:
1. A check drawn on any bank or domestic savings institution. Checks must be payable in U.S. dollars and will be accepted subject to collection at full face value.
2. A bank wire or federal reserve wire of federal funds.
P
URCHASES
OF
F
UND
S
HARES
Initial Purchase By Wire
1. Telephone toll free from any continental U.S. state:
(800) 437-9912. When you contact the Transfer Agent, you will need the following information:
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name(s) in which shares are to be registered;
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social security or tax identification number (where applicable);
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dividend payment election;
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name of the wiring bank; and
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name and telephone number of the person to be contacted in connection with the order.
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The Transfer Agent will assign you an account number.
2. Instruct the wiring bank to transmit at least the required minimum amount (see Purchase Minimums above) to the custodian:
State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111
ABA # 011000028
Account: DDA #99055287
Attn: Cohen & Steers Preferred Securities and Income Fund, Inc.
For further credit to: (Account Name)
Account Number: (provided by the Transfer Agent)
3. Complete the Subscription Agreement attached
to this Prospectus and mail the Subscription Agreement to the Transfer Agent:
Boston Financial Data Services
Attn: Cohen & Steers Funds
P.O. Box 8123
Boston, Massachusetts 02266-8123
Additional Purchases By Wire
1.
Telephone toll free from any continental U.S. state: (800) 437-9912. When you contact the Transfer Agent, you will need the following information:
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name of the wiring bank; and
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name and telephone number of the person to be contacted in connection with the order.
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2. Instruct the wiring bank to transmit at least the required minimum amount (see Purchase Minimums above) to the custodian:
State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111
ABA # 011000028
Account: DDA #99055287
Attn: Cohen & Steers Preferred Securities and Income Fund, Inc.
For
further credit to: (Account Name)
Account Number: (provided by the Transfer Agent)
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Initial Purchase By Mail
1. Complete the Subscription Agreement attached to this Prospectus.
2. Mail the Subscription
Agreement and a check in at least the required minimum amount (see Purchase Minimums above), payable to the Fund, to the Transfer Agent at the above address.
Additional Purchases By Mail
1. Make a check payable to the Fund in at least the required
minimum amount (see Purchase Minimums above). Write your Fund account number and the class of shares to be purchased on the check.
2.
Mail the check and the detachable stub from your account statement (or a letter providing your account number) to the Transfer Agent at the address set forth above.
P
URCHASES
T
HROUGH
D
EALERS
AND
I
NTERMEDIARIES
You may purchase the Funds shares through authorized dealers and other financial intermediaries.
Financial service firms that do not have a sales agreement with the Distributor also may place orders for purchases of the Funds shares, but may charge you a transaction fee.
Dealers and financial service firms are responsible for promptly transmitting purchase orders to the Distributor. These dealers and financial service
firms may also impose charges for handling transactions placed through them that are in addition to any other charges described in this Prospectus. Such charges may include processing or service fees, which are typically fixed dollar amounts. You
should contact your dealer or financial service firm for more information about any additional charges that may apply.
ADDITIONAL INFORMATION ON
PURCHASE OF FUND SHARES
A
DDITIONAL
C
LASSES
O
FFERED
In addition to offering Class I shares, the Fund also offers Class A and Class C shares, which are described in a separate prospectus. To obtain a
prospectus for these classes, contact Boston Financial Data Services (the Transfer Agent) by writing to the address or by calling the telephone number listed on the back cover of this Prospectus.
D
EALER
C
OMPENSATION
Dealers will be paid a commission when you buy shares and may also be compensated through the service fees paid by the Fund. In addition, dealers may
charge fees for administrative and other services that such dealers provide to Fund shareholders. These fees may be paid by the Advisor (or an affiliate) out of its own resources and/or by the Fund pursuant to a networking or sub-transfer agency
arrangement. See Additional InformationNetworking and Sub-Transfer Agency Fees.
A
UTOMATIC
I
NVESTMENT
P
LAN
AND
P
URCHASES
BY
ACH
The Funds automatic
investment plan (the Plan) provides a convenient way to invest in the Fund. Under the Plan, you can have money transferred automatically from your checking account to the Fund each month to buy additional shares. If you are interested in this Plan,
please refer to the automatic investment plan section of the Subscription Agreement attached to this Prospectus or contact your dealer. The market value of the Funds shares may fluctuate, and a systematic investment plan such as this will not
assure a profit or protect against a loss. You may discontinue the Plan at any time by notifying the Fund by mail or telephone at the address or number on the back cover of this Prospectus.
26
You may purchase additional shares of the Fund by automated clearing house (ACH). To elect the Auto-Buy
option, select it on your Subscription Agreement or call the Transfer Agent and request an optional shareholder services form. ACH is similar to the Plan except that you may choose the date on which you want to make the purchase. We will need a
voided check or deposit slip before you may purchase by ACH. If you are interested in this option, please call (800) 437-9912.
The
Fund reserves the right to reject or cancel any purchase order and to withdraw or suspend the offering of shares at any time. In addition, the Fund reserves the right to waive or change its minimum investment requirements. The Fund may also request
additional information from you in order to verify your identity. If you do not provide this information or if such information cannot be verified, we reserve the right to close your account to the extent required or permitted by applicable law or
regulations, including those relating to the prevention of money laundering.
EXCHANGE PRIVILEGE
You may exchange some or all of your Fund shares for shares of other Cohen & Steers open-end funds, provided that you meet
applicable investment minimums. If you exchange Fund shares for shares of another Cohen & Steers open-end fund that imposes sales charges, you must exchange into shares of the same class of such other fund.
You may, under certain circumstances, exchange Fund shares for a different class of shares of the same Fund, and move shares held in certain types of
accounts to a different type of account or to a new account maintained by a financial intermediary. To qualify for a potential exchange, you must be eligible to purchase the class of shares you wish to exchange into (including satisfying any
applicable investment minimum) and, if you invest in the Fund through an intermediary, your intermediary must have an arrangement with the Distributor to offer such class. No sales charges or other charges will apply to any such exchange. For
federal income tax purposes, a same-fund share class exchange is not expected to result in the realization by the investor of a capital gain or loss; however, shareholders are advised to consult with their own tax advisors with respect to the
particular tax consequences to them of an investment in the Fund. In addition, shareholders are advised to consult with their own tax advisors with respect to any tax consequences to them relating to an exchange of Fund shares for shares of a
different Cohen & Steers fund. Please speak with your financial intermediary or tax advisor if you have any questions.
The Fund also makes
available for exchange shares of SSgA Money Market Fund, which is advised by SSgA Funds Management, Inc. You may request a prospectus and application for the SSgA Money Market Fund by calling (800) 437-9912. Please read the prospectus carefully
before you invest.
An exchange of shares may result in your realizing a taxable gain or loss for income tax purposes. See Additional
InformationTax Considerations. The exchange privilege is available to shareholders residing in any state in which the shares being acquired may be legally sold. Before you exercise the exchange privilege, you should read the prospectus of the
fund whose shares you are acquiring, and all exchanges are subject to any other limits on sales of or exchanges into that fund. Certain dealers and other financial intermediaries may limit or prohibit your right to use the exchange privilege and may
charge you a fee for exchange transactions placed through them.
We have adopted reasonable procedures that are designed to ensure that any
telephonic exchange instructions are genuine. Neither the Fund nor its agents will be liable for any loss or expenses if we act in accordance with these procedures. We may modify or suspend telephone exchange privileges without notice during periods
of drastic economic or market changes.
We may modify or revoke the
27
exchange privilege for all shareholders upon 60 days prior written notice and this privilege may be revoked immediately with respect to any shareholder if the Fund believes that this
shareholder is engaged in, or has engaged in, market timing or other abusive trading practices.
For additional information concerning exchanges, or to make an exchange, please call the Transfer Agent at (800) 437-9912.
HOW TO SELL FUND SHARES
You may sell or redeem your shares through
authorized dealers, other financial intermediaries or through the Transfer Agent. If your shares are held by your dealer or intermediary in street name, you must redeem your shares through that dealer or intermediary.
Redemptions Through Dealers and Other Intermediaries
If you have an account with an authorized dealer or other intermediary, you may submit a redemption request to such dealer or intermediary. They are responsible for promptly transmitting redemption
requests to the Distributor. Dealers and intermediaries may impose charges for handling redemption transactions placed through them that are in addition to the charges described in this Prospectus. Such charges may include processing or service
fees, which are typically fixed dollar amounts. You should contact your dealer or intermediary for more information about any additional charges that may apply.
Redemption By Telephone
To redeem shares by telephone, call the Funds Transfer Agent
at (800) 437-9912. In order to be honored at that days price, we must receive any telephone redemption requests by the close of regular trading on the NYSE that day, generally 4:00 p.m., eastern time. Orders received after the close of
regular trading on the NYSE will receive the NAV next determined.
If you would like to change your telephone redemption instructions, you must
send the Transfer Agent written notification signed by all of the accounts registered owners, accompanied by signature guarantee(s), as described below.
We may modify or suspend telephone redemption privileges without notice during periods of drastic economic or market changes. We have adopted reasonable procedures that are designed to ensure that any
telephonic redemption instructions are genuine. Neither the Fund nor its agents will be liable for any loss or expenses if we act in accordance with these procedures.
We may modify or terminate the telephone redemption privilege at any time on 30
days notice to shareholders.
Redemption By Mail
You can redeem Fund shares by sending a written request for redemption to the Transfer Agent:
Boston Financial Data Services
P.O. Box 8123 Boston,
Massachusetts 02266-8123
Attn: Cohen & Steers Preferred Securities and Income Fund, Inc.
A written redemption
request must:
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state the number of shares or dollar amount to be redeemed;
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identify your account number and tax identification number; and
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be signed by each registered owner exactly as the shares are registered.
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28
If the shares to be redeemed were issued in certificate form, the certificate must be endorsed for transfer
(or be accompanied by a duly executed stock power) and must be submitted to the Transfer Agent together with a redemption request.
For
redemptions made by corporations, executors, administrators or guardians, the Transfer Agent may require additional supporting documents evidencing the authority of the person making the redemption (including evidence of appointment or incumbency).
For additional information regarding the specific documentation required, contact the Transfer Agent at (800) 437-9912.
The Transfer
Agent will not consider your redemption request to be properly made until it receives all required documents in proper form.
O
THER
R
EDEMPTION
I
NFORMATION
Payment of Redemption Proceeds
The Fund
will send you redemption proceeds by check. However, if you made an election on the Subscription Agreement to receive redemption proceeds by wire, the Fund will send the proceeds by wire to your designated bank account. When proceeds of a redemption
are to be paid to someone other than the shareholder, either by wire or check, you must send a letter of instruction and the signature(s) on the letter of instruction must be guaranteed, as described below, regardless of the amount of the
redemption. The Transfer Agent will normally mail checks for redemption proceeds within five business days. Redemptions by wire will normally be sent within two business days. The Fund will delay the payment of redemption proceeds, however, if your
check used to pay for the shares to be redeemed has not cleared, which may take up to 15 days or more. The Fund may suspend the right of redemption or postpone the date of payment if trading is halted or restricted on the NYSE or under other
emergency conditions as permitted by the Investment Company Act of 1940, as amended (the 1940 Act).
The Fund will pay redemption proceeds in
cash, by check or wire, unless the Board of Directors believes that economic conditions exist which make redeeming in cash detrimental to the best interests of the Fund. In the event that this were to occur, all or a portion of your redemption
proceeds would consist of readily marketable portfolio securities of the Fund transferred into your name. You would then incur brokerage costs in converting the securities to cash. The Fund has elected, however, to be governed by Rule 18f-1 under
the 1940 Act, as a result of which the Fund is obligated to redeem shares, with respect to any one shareholder during any 90-day period, solely in cash up to the lesser of $250,000 or 1% of the Funds NAV at the beginning of the period.
Signature Guarantee
You may
need to have your signature guaranteed (STAMP 2000 Medallion) in certain situations, such as:
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written requests to wire redemption proceeds (if not previously authorized on the Subscription Agreement);
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sending redemption proceeds to any person, address or bank account not on record; and
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transferring redemption proceeds to a Cohen & Steers fund account with a different registration (name/ownership) from yours.
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You can obtain a signature guarantee from most banks, savings institutions, broker-dealers and other guarantors acceptable
to the Fund. The Fund cannot accept guarantees from notaries public or organizations that do not provide reimbursement in the case of fraud. A Signature Validation Program (SVP) stamp may be accepted for certain non-financial shareholder account
changes.
29
Systematic Withdrawal Plan
Shareholders may redeem their shares through a Systematic Withdrawal Plan (SWP). Under the SWP, shareholders or their financial intermediaries may request that a payment drawn in a predetermined amount be
sent to them on a monthly, quarterly or annual basis. If you elect this method of redemption, the Fund will send a check directly to your address of record or will send the payment directly to your bank account via electronic funds transfer through
the ACH network. For payment through the ACH network, your bank must be an ACH member and your bank account information must be previously established on your account. For additional information on the SWP, please contact the Transfer Agent at
(800) 437-9912. The SWP may be terminated at any time by the Fund.
Redemption of Small Accounts
If your Fund account has a value of $100,000 or less as the result of any voluntary redemption, we may redeem your remaining shares. We will, however,
give you 30 days notice of our intention to do so. During this 30-day notice period, you may make additional investments to increase your account value to $100,000 (the minimum purchase amount) or more and avoid having the Fund automatically
liquidate your account.
FREQUENT PURCHASES AND REDEMPTIONS OF FUND SHARES
The Fund is designed for long-term investors with investment horizons of at least two months. Excessive trading, short-term market timing or other abusive trading practices may disrupt portfolio
management strategies and harm portfolio performance. For example, in order to handle large flows of cash into and out of the Fund, a portfolio manager may need to allocate more assets to cash or other short-term investments or sell securities.
Transaction costs, such as brokerage commissions and market spreads, can detract from the Funds performance. Additionally, excessive trading is a concern for the Fund because the Funds portfolio will have foreign securities and therefore
could be subject to time-zone arbitrage.
Because of potential harm to the Fund and its long-term investors, the Board of Directors of the Fund
has adopted policies and procedures to discourage and prevent excessive trading and short-term market timing. As part of these policies and procedures, the Advisor monitors purchase, exchange and redemption activity in Fund shares. The intent is not
to inhibit legitimate strategies such as asset allocation, dollar cost averaging or similar activities that may nonetheless result in frequent trading of the Funds shares. Under these procedures, the Fund generally prohibits more than two
purchases and sales or exchanges of its shares within a 60 day calendar period.
The following transactions are excluded when determining
whether trading activity is excessive (i) transfers associated with systematic purchases or redemptions; (ii) transactions through firm-sponsored discretionary asset allocation or wrap programs; and (iii) transactions subject to the
trading policy of an intermediary that the Fund deems materially similar to the Funds policy.
If, based on these procedures, the Advisor
determines that a shareholder is engaged in, or has engaged in, market timing or excessive trading, we may place a temporary or permanent block on all further purchases or exchanges of Fund shares.
Multiple accounts under common ownership or control may be considered one account for the purpose of determining a pattern of excessive trading,
short-term market timing or other abusive trading practices.
The Fund will also utilize fair value pricing in an effort to reduce arbitrage
opportunities available to short-term traders.
30
Due to the complexity involved in identifying excessive trading and market timing activity, there can be no
guarantee that the Fund will be able to identify and restrict such activity in all cases. Additionally, it is more difficult for the Fund to monitor the trading activity of beneficial owners of Fund shares who hold those shares through third-party
401(k) and other group retirement plans and other omnibus arrangements maintained by broker/dealers and other intermediaries. Omnibus account arrangements permit multiple investors to aggregate their respective share ownership positions and
purchase, redeem and exchange Fund shares in a single account.
In certain circumstances the Fund may accept frequent trading restrictions of
intermediaries that differ from the Funds policies. Since such intermediaries execute or administer transactions with many fund families, it may be impractical for them to enforce a particular funds frequent trading or exchange policy.
These alternate trading restrictions would be authorized only if the Fund believes that the alternate restrictions would provide reasonable protection to the Fund and its shareholders.
ADDITIONAL INFORMATION
SHAREHOLDER SERVICES PLAN
The Fund has adopted a shareholder services plan, pursuant to which the Fund pays the Distributor a fee at an annual rate of up to 0.10%
of the average daily NAV of the Funds Class I shares for shareholder account service and maintenance. Under this plan, the Fund or the Distributor may enter into agreements with qualified financial institutions to provide these shareholder
services, and the Distributor is responsible for payment to the financial institutions. Services provided may vary based on the services offered by your financial institution.
NETWORKING AND SUB-TRANSFER AGENCY FEES
The Fund may also enter into
agreements with financial intermediaries pursuant to which the Fund will pay financial intermediaries for services such as networking or sub-transfer agency. Payments made pursuant to such agreements are generally based on either (1) a
percentage of the average daily net assets of Fund shareholders serviced by such financial intermediaries, or (2) the number of Fund shareholders serviced by such financial intermediaries. From time to time, the Advisor may pay a portion of the
fees for networking or sub-transfer agency services at its own expense and out of its own profits.
OTHER COMPENSATION
The Advisor and the Distributor may make payments from their own resources to dealers and other financial intermediaries for distribution,
administrative or other services. These payments may be significant to the dealers and the financial intermediaries, and may create an incentive for a dealer or financial intermediary or their representatives to recommend or sell shares of a
particular fund or share class over other mutual funds or share classes. Additionally, these payments may result in the Fund receiving certain marketing or servicing advantages that are not generally available to mutual funds that do not make such
payments, including placement on a sales list, including a preferred or select sales list, or in other sales programs. These payments, which are in addition to any amounts you may pay your dealer or other financial intermediary, may create potential
conflicts of interest between an investor and a dealer or other financial intermediary who is recommending a particular mutual fund over other mutual funds. Please contact your dealer or intermediary for details about payments it may receive. For
further details, please consult the SAI.
31
DIVIDENDS AND DISTRIBUTIONS
The Fund intends to declare and pay dividends from its investment income monthly. The Fund intends to distribute net realized capital gains, if any, at least once each year, normally in December. The
Transfer Agent will automatically reinvest your dividends and distributions in additional shares of the Fund unless you elected on your Subscription Agreement to have them paid to you in cash.
TAX CONSIDERATIONS
The following tax discussion offers only a brief
outline of the federal income tax consequences of investing in the Fund and is based on the federal tax laws in effect on the date hereof. Such tax laws are subject to change by legislative, judicial or administrative action, possibly with
retroactive effect. Further, this discussion does not address tax consequences to specific types of shareholders such as tax-deferred retirement plans or foreign shareholders (defined below). In the SAI, we have provided more detailed information
regarding the tax consequences of investing in the Fund.
Dividends paid to you out of the Funds investment income will generally be
taxable to you as ordinary income. Taxes on distributions of capital gains are determined by how long the Fund owned or is considered to have owned the investments that generated them, rather than how long you have owned your shares. Distributions
from the sale of investments that the Fund owned for more than one year and that are properly reported by the Fund as capital gain dividends are taxable to you as long-term capital gains includible in net capital gains and taxed to individuals at
reduced rates. Distributions from the sale of investments that the Fund owned for one year or less are taxable to you as ordinary income.
If a
portion of the Funds income consists of dividends paid by U.S. corporations, a portion of the dividends paid by the Fund may be eligible for the corporate dividends received deduction for corporate shareholders. In addition, distributions
reported by the Fund as derived from qualified dividend income (QDI) will be taxed in the hands of individuals at the reduced rates applicable to net capital gain, provided certain holding period and other requirements are met by both
the shareholder and the Fund. Dividend income that the Fund receives from REITs, if any, will generally not be treated as QDI and will not qualify for the corporate dividends-received deduction. It is unclear the extent to which distributions the
Fund receives from investments in certain preferred securities will be eligible for treatment as QDI or for the corporate dividends-received deduction. The Fund cannot predict at this time what portion, if any, of its dividends will be eligible for
the reduced rates of taxation applicable to QDI.
For taxable years beginning on or after January 1, 2013, a 3.8% Medicare contribution tax is
imposed on the net investment income of certain individuals whose income exceeds certain threshold amounts, and of certain trusts and estates under similar rules. Net investment income generally includes for this purpose dividends paid by a Fund,
including any capital gain dividends but excluding any exempt-interest dividends, and net capital gains recognized on the sale, redemption or exchange of shares of a Fund. Shareholders are advised to consult their tax advisors regarding the possible
implications of this additional tax on their investment in a Fund.
A distribution of an amount in excess of the Funds current and
accumulated earnings and profits is treated as a non-taxable return of capital that reduces your tax basis in your Fund shares; any such distributions in excess of your tax basis are treated as gain from a sale of your shares. The tax treatment of
your dividends and distributions will be the same regardless of whether they were paid to you in cash or reinvested in additional Fund shares. If you buy shares of the Fund when the Fund has realized but not yet distributed income or capital gains,
you will be buying a dividend by paying the full price for the shares and then receiving a portion back in the form of a taxable distribution.
32
A distribution will be treated as paid to you on December 31 of the current calendar year if it is
declared by the Fund in October, November or December with a record date in such a month and paid during January of the following year.
Each
year, we will notify you of the tax status of dividends and other distributions.
The Fund has elected to be treated as, and intends to qualify
each year to be treated as, a regulated investment company (RIC) under U.S. federal income tax law. In order to qualify and be treated as a RIC, the Fund must derive at least 90% of its gross income for each taxable year from qualifying
income as defined in the Code and meet requirements with respect to diversification of assets and distribution of income and gains. If the Fund does so, the Fund generally will not be required to pay federal income taxes on any income it
distributes to shareholders. If the Fund were to fail to meet any one of these requirements, the Fund could in some cases cure such failure including by paying a Fund-level tax, paying interest, making additional distributions, or disposing of
certain assets. If the Fund were ineligible to or otherwise did not cure such failure for any year, the Fund would be subject to tax on its taxable income and net capital gains at corporate rates, and all distributions from earnings and profits,
including any distributions of net long-term capital gains, would be taxable to shareholders as ordinary income.
Certain income received from
sources outside the United States may be subject to withholding taxes imposed by other countries. In the event that more than 50% of the value of the total assets of the Fund at the close of the taxable year consists of stock or securities of
foreign corporations, the Fund may make an election to pass through to its shareholders the amount of foreign income taxes paid by it. If the Fund makes this election, you will be required to include your share of those taxes in gross income as a
distribution from the Fund and you generally will be allowed to claim a credit (or a deduction, if you itemize deductions) for such amounts on your federal U.S. income tax return, subject to certain limitations.
Any transaction by the Fund in foreign currencies, foreign currency-denominated debt securities or certain foreign currency options, futures contracts or
forward contracts (or similar instruments) may give rise to ordinary income or loss to the extent such income or loss results from fluctuations in the value of the foreign currency concerned. Such ordinary income treatment may accelerate Fund
distributions to shareholders and increase the distributions taxed to shareholders as ordinary income.
Certain of the Funds investments,
including certain debt instruments, could cause the Fund to recognize taxable income in excess of the cash generated by such investments, which may require the Fund to liquidate other investments (including when it is not advantageous to do so) to
meet its distribution requirements for qualifications as a regulated investment company.
If you sell or redeem your Fund shares,
or exchange them for shares of another Cohen & Steers open-end fund, you may realize a capital gain or loss (provided the shares are held as a capital asset) which will be long-term or short-term, depending on your holding period for the
shares.
Upon the redemption or exchange of your shares in the Fund, the Fund or, if you purchase your shares through a financial intermediary,
your financial intermediary generally will be required to provide you and the IRS with cost basis and certain other related tax information about the Fund shares you redeemed or exchanged. This cost basis reporting requirement is effective for
shares purchased, including through dividend reinvestment, on or after January 1, 2012. Please see the Subscription Agreement or consult your financial intermediary, as appropriate, for more information regarding available methods for cost
basis reporting and how to select or change a particular method. Please consult your tax advisor to determine which available cost basis method is best for you.
33
We may be required to withhold U.S. federal income tax from all taxable distributions and redemption
proceeds payable if you:
·
|
|
fail to provide us with your correct taxpayer identification number;
|
·
|
|
fail to make required certifications; or
|
·
|
|
have been notified by the Internal Revenue Service that you are subject to backup withholding.
|
Backup withholding is not an additional tax. Any amounts withheld may be credited against your U.S. federal income tax liability.
Fund distributions also may be subject to state and local taxes. You should consult with your own tax advisor regarding the particular consequences of
investing in the Fund.
Non-resident alien individuals, foreign trusts or estates, foreign corporations or foreign partnerships (foreign
shareholders) are advised to consult with their own tax advisors with respect to the particular tax consequences to them of an investment in the Fund.
Please see the SAI for more detailed tax information.
34
FINANCIAL HIGHLIGHTS
The financial highlights table is intended to
help you understand the financial performance of the Funds Class I shares for the fiscal periods shown below. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an
investor would have earned or lost on an investment in the Fund (assuming reinvestment of all dividends and distributions). The financial highlights have been derived from financial statements audited by PricewaterhouseCoopers LLP, whose report,
along with the Funds audited financial statements, is included in the Funds current annual report, which is available free of charge upon request or by visiting www.cohenandsteers.com.
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.
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Class I
|
|
|
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For the Year Ended
December 31,
|
|
|
For the Period
May 3, 2010
(a)
through
December 31, 2010
|
|
Per Share Operating Performance:
|
|
2012
|
|
|
2011
|
|
|
Net asset value, beginning of period
|
|
$
|
11.70
|
|
|
$
|
12.10
|
|
|
$
|
11.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
(b)
|
|
|
0.76
|
|
|
|
0.80
|
|
|
|
0.58
|
|
Net realized and unrealized gain (loss)
|
|
|
1.80
|
|
|
|
(0.35
|
)
|
|
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total from investment operations
|
|
|
2.56
|
|
|
|
0.45
|
|
|
|
1.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less dividends and distributions to shareholders from:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.77
|
)
|
|
|
(0.74
|
)
|
|
|
(0.36
|
)
|
Net realized gain
|
|
|
(0.11
|
)
|
|
|
|
|
|
|
(0.04
|
)
|
Tax return of capital
|
|
|
(0.02
|
)
|
|
|
(0.11
|
)
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total dividends and distributions to shareholders
|
|
|
(0.90
|
)
|
|
|
(0.85
|
)
|
|
|
(0.43
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redemption fees retained by the Fund
|
|
|
|
|
|
|
0.00
|
(c)
|
|
|
0.00
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net asset value
|
|
|
1.66
|
|
|
|
(0.40
|
)
|
|
|
0.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period
|
|
$
|
13.36
|
|
|
$
|
11.70
|
|
|
$
|
12.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment return
(d)
|
|
|
22.52
|
%
|
|
|
3.74
|
%
|
|
|
9.39
|
%
(e)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period
(in millions)
|
|
$
|
982.4
|
|
|
$
|
413.7
|
|
|
$
|
65.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of expenses to average daily net assets
(before expense reduction)
(f)
|
|
|
0.87
|
%
|
|
|
0.94
|
%
|
|
|
1.32
|
%
(g)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of expenses to average daily net assets
(net of expense reduction)
(f)
|
|
|
0.75
|
%
|
|
|
0.71
|
%
|
|
|
0.50
|
%
(g)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of net investment income to average daily net assets
(before expense reduction)
(f)
|
|
|
5.83
|
%
|
|
|
6.47
|
%
|
|
|
6.43
|
%
(g)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of net investment income to average daily net assets
(net of expense reduction)
(f)
|
|
|
5.95
|
%
|
|
|
6.70
|
%
|
|
|
7.25
|
%
(g)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate
|
|
|
39
|
%
|
|
|
44
|
%
|
|
|
31
|
%
(e)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Commencement of operations.
|
(b)
|
Calculation based on average shares outstanding.
|
(c)
|
Amount is less than $0.005.
|
(d)
|
Return assumes the reinvestment of all dividends and distributions at NAV.
|
(f)
|
Non-class specific expenses are calculated at the Fund level and class specific expenses are calculated at the class level.
|
35
C
OHEN
& S
TEERS
P
REFERRED
S
ECURITIES
A
ND
I
NCOME
F
UND
, I
NC
. C
LASS
I S
HARES
O
NLY
THE USA PATRIOT ACT
To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial
institutions to obtain, verify and record information that identifies each person who opens an account.
What this means for you: when you open an account, we will ask you for your name, address, date of birth and other information that will allow us to identify you. This information will be verified to
ensure the identity of all individuals opening a mutual fund account.
SUBSCRIPTION AGREEMENT
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1
|
|
Account Type
(Please print; indicate only one registration type)
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¨
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A. Individual or Joint Account*
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-
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-
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Name
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Social Security Number**
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Date of Birth
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-
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-
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Name of Joint Owner, if any
|
|
Social Security Number**
|
|
Date of Birth
|
|
|
Citizenship:
¨
U.S.
Citizen
¨
Resident Alien
¨
Nonresident
Alien***:
|
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¨
|
|
B. Uniform Gifts/Transfers to Minors (UGMA/UTMA)
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-
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-
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Custodians name (only one permitted)
|
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Social Security Number**
|
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Date of Birth
|
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-
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-
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Minors name (only one permitted)
|
|
Social Security Number**
|
|
Date of Birth
|
|
|
under the
Uniform Gifts/Transfers to Minors Act
|
|
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(state residence of minor)
|
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Citizenship of custodian:
|
|
¨
|
|
U.S. Citizen
|
|
¨
|
|
Resident Alien
|
|
¨
|
|
Nonresident Alien***:
|
|
|
|
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|
Country of Citizenship
|
|
|
Citizenship of minor:
|
|
¨
|
|
U.S. Citizen
|
|
¨
|
|
Resident Alien
|
|
¨
|
|
Nonresident Alien***:
|
|
|
|
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Country of Citizenship
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¨
|
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C. Trust, Corporation or Other Entity
|
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Name of Trust, Corporation or Other Entity
|
|
Tax Identification Number**
|
|
Date of Trust Agreement
|
Check the box that describes the entity establishing the account:
|
¨
|
U.S. Financial Institution governed by a federal regulator.
|
|
¨
|
Bank governed by a U.S. state bank regulator.
|
|
¨
|
Corporation. If Corporation, provide the tax classification:
(C=C Corporation, S=S Corporation). Attach a copy of the certified articles of incorporation or business license unless the
corporation is publicly traded on the New York Stock Exchange or NASDAQ. If so, please provide ticker symbol:
|
|
¨
|
Retirement plan governed by ERISA.
|
|
¨
|
Trust. Attach a copy of the Trust Agreement.
|
|
¨
|
Partnership. Attach a copy of Partnership Agreement.
|
|
¨
|
Limited Liability Company (LLC). If LLC, provide the tax
classification:
(C= C Corporation, S=S Corporation, P=Partnership).
|
|
¨
|
U.S. Government Agency or Instrumentality.
|
|
¨
|
Foreign correspondent account, foreign broker-dealer or foreign private banking account.
|
|
¨
|
Other.
Attach copy of document that formed entity or by laws or similar document.
|
|
Call
|
(800) 437-9912 to see if additional information is required.
|
|
*
|
|
All joint registrations will be registered as joint tenants with rights of survivorship unless otherwise specified.
|
|
**
|
|
If applied for, include a copy of application for social security or tax identification number.
|
|
***
|
|
Nonresident aliens must include a copy of a government-issued photo ID with this application
|
|
|
|
If no classification is provided, per IRS regulations, your account will default to an S Corporation.
|
CPXAXSAGI-0513
|
|
|
|
|
|
|
2
|
|
Authorized Persons
|
|
|
|
|
If you are establishing an account under 1C above as a (i) Corporation (non-publicly traded), (ii) Partnership, (iii) Trust or (iv) Other, information on each of
the individuals authorized to effect transactions must be provided below:
|
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-
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|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Authorized Individual/Trustee
|
|
Social Security Number*
|
|
Date of Birth
|
|
|
|
|
|
|
|
|
|
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-
|
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|
-
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|
|
|
|
|
|
|
|
|
Authorized Individual/Trustee
|
|
Social Security Number*
|
|
Date of Birth
|
|
|
|
|
Citizenship:
¨
U.S.
Citizen
¨
Resident Alien
¨
Nonresident
Alien**:
|
(If there are more than two authorized persons, provide the information, in the same format, on a separate
sheet for each such additional person.)
|
*
|
If applied for, include a copy of application for social security number.
|
|
**
|
Nonresident aliens must include a copy of a government-issued photo ID with this application.
|
|
|
|
|
|
|
|
3
|
|
Address
|
|
|
|
|
(If mailing address is a post office box, a street address is also required. APO and FPO addresses will be
accepted.)
Registrant Street Address
|
|
|
|
|
|
|
|
|
|
(
)
|
|
|
Street
|
|
Home Telephone Number
|
|
|
|
|
(
)
|
|
|
City and
State
Zip Code
|
|
Business Telephone Number
|
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|
|
Mailing Address
|
|
|
|
City
|
|
|
|
State
|
|
|
|
Zip
|
|
|
Joint Registrant Street Address (required if different than Registrant Address above)
$
Amount to invest ($100,000 minimum investment). Do not send cash. Investment will be paid for by
(please check one):
|
¨
|
Check or draft made payable to Cohen & Steers Preferred Securities and Income Fund, Inc.
|
|
¨
|
Wire through the Federal Reserve
System.*
|
|
*
|
Call (800) 437-9912 to notify the Fund of investments by wire and to obtain an account number. See the
Purchase of Fund Shares
section of the Prospectus for wire instructions.
|
Federal law requires mutual fund companies to report cost basis information to shareholders and to the
Internal Revenue Service (IRS) on mutual fund shares acquired and subsequently redeemed after December 31, 2011 (covered shares). In order to provide you and the IRS with accurate cost basis accounting, you are being
asked to select a cost basis method to be applied to your covered shares.
Please consult your tax adviser to determine which
method best suits your individual tax situation.
If you do not elect a method, the Fund default method of Average Cost will
apply until it is either revoked or changed by you.
Please check one of the following available cost basis methods:
|
¨
|
Average Cost (ACST) The purchase price of all shares in the account are averaged
|
|
¨
|
First In, First Out (FIFO) Depletes shares beginning with the earliest acquisition date
|
|
¨
|
Last In, First Out (LIFO) Depletes shares beginning with the most recent acquisition date
|
|
¨
|
High Cost (HIFO) Depletes shares beginning with the most expensive shares
|
|
¨
|
Low Cost (LOFO) Depletes shares beginning with the least expensive shares
|
|
¨
|
Loss/Gain Utilization (LGUT) Depletes shares with losses prior to shares with gains and short-term shares prior to long-term shares
|
|
¨
|
Specific Lot Identification Depletes shares according to the lots chosen by the shareholder at the time of each redemption. If you choose this method, you will
need to select a secondary cost basis method to be used for systematic redemptions in cases where the lots you designate are insufficient or unavailable. Please check one of the following:
|
|
¨
|
First In, First Out (FIFO)
|
|
¨
|
Last In, First Out (LIFO)
|
|
¨
|
Loss/Gain Utilization (LGUT)
|
Your elected cost basis method will be applied to all covered shares in this account and future accounts opened with the
Cohen & Steers Funds that have the identical name, account type and registration as listed on this Subscription Agreement.
|
|
|
|
|
|
|
6
|
|
Automatic Investment Plan
|
|
|
|
A.
|
The automatic investment plan makes possible regularly scheduled monthly purchases of Fund shares. The Funds Transfer Agent can arrange for an amount of money
selected by you ($500 minimum) to be deducted from your checking account and used to purchase shares of the Fund.
|
Please debit $
from my checking
account beginning on
*.
(Month)
Please
debit my account on
(check one)
:
¨
1st of Month
¨
15th of Month
|
B.
|
¨
Please establish the Auto-Buy option, which allows you to make additional investments on dates you choose
by having an amount of money selected by you ($500 minimum) deducted from your checking account.*
|
|
*
|
To initiate the Automatic Investment Plan or the Auto-Buy option, Section 10 of this Subscription Agreement must be completed.
|
Exchange privileges will be automatically granted unless you check the box below. Shareholders wishing to
exchange into other Cohen & Steers Funds or the SSgA Money Market Fund should consult the
Exchange Privilege
section of the
Prospectus. (Note: If shares are being purchased through a dealer, please contact your dealer for availability of this service.)
|
¨
|
I decline the exchange privilege.
|
Shareholders may select the following redemption privileges by checking the box(es) below. See
How to Sell Fund Shares
section of the Prospectus for further details. Redemption privileges will be automatically declined for boxes not checked.
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¨
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I authorize the Transfer Agent to redeem shares in my account(s) by telephone, in accordance with the procedures and conditions set forth in the Funds current
Prospectus.
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¨
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I wish to have redemption proceeds paid by wire (please complete Section 10).
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Dividends and capital gains may be reinvested or paid by check. If no options are selected below, both
dividends and capital gains will be reinvested in additional Fund shares.
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Dividends
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¨
Reinvest.
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¨
Pay in cash.
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Capital Gains
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¨
Reinvest.
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¨
Pay in cash.
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¨
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I wish to have my distributions paid by wire (please complete Section 10).
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10
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Bank of Record (for Wire Instructions and/or Automatic Investment Plan)
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Please attach a voided check from your bank account.
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Bank Name
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Bank ABA Number
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Street or P.O. Box
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Bank Account Number
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City and State Zip Code
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Account Name
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11
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Signature and Certifications
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(a)
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By signing this agreement, I represent and warrant that:
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(1)
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I have the full right, power, capacity and authority to invest in the Fund;
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(2)
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I am of legal age in my state of residence or am an emancipated minor;
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(3)
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All of the information on this agreement is true and correct; and
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(4)
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I will notify the Fund immediately if there is any change in this information.
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(b)
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I have read the current Prospectus of the Fund and this agreement and agree to all their terms. I also agree that any shares purchased now or later are and will be
subject to the terms of the Funds Prospectus as in effect from time to time. Further, I agree that the Fund, its administrators and service providers and any of their directors, trustees, employees and agents will not be liable for any claims,
losses or expenses (including legal fees) for acting on any instructions believed to be genuine, provided that reasonable security procedures have been followed. If an account has multiple owners, the Fund may rely on the instructions of any one
account owner unless all owners specifically instruct the Fund otherwise.
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(c)
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I am aware that under the laws of certain states, the assets in my account may be transferred (escheated) to the state if no activity occurs in my account within a
specified period of time.
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(d)
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If I am a U.S. citizen, resident alien, or a representative of a U.S. entity, I certify, under penalty of perjury, that:
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(1)
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The taxpayer identification number and tax status shown on this form are correct.
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(2)
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I am not subject to backup withholding because:
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I am exempt from backup withholding, OR
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I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report
all interest or dividends, OR
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The IRS has notified me that I am no longer subject to backup withholding.
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NOTE: If you have been notified by the IRS that you are currently subject to backup withholding because of under-reporting interest or
dividends on your tax return, you must cross out this Item 2.
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(3)
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I am a U.S. person (including resident alien).
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(e)
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If I am a nonresident alien, I understand that I am required to complete and attach the appropriate Form W-8 to certify my foreign status.
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(1)
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Indicate country of residence for tax purposes
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Under penalty of perjury, I certify that I am not a U.S. citizen or resident alien and I am an exempt foreign person as defined by the IRS.
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(f)
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Additional Certification:
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(1)
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Neither I (we), nor any person having a direct or indirect beneficial interest in the shares to be acquired, appears on any U.S. government published list of persons
who are known or suspected to engage in money laundering activities, such as the Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control of the United States Department of the Treasury. I (we) do not know or
have any reason to suspect that (i) the monies used to fund my (our) investment have been or will be derived from or related to any illegal activities and (ii) the proceeds from my (our) investment will be used to finance any illegal
activities.
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(2)
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I agree to provide such information and execute and deliver such documents as the Fund may reasonably request from time to time to verify the accuracy of the
information provided in connection with the opening of an account or to comply with any law, rule or regulation to which the Fund may be subject, including compliance with anti-money laundering laws.
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The IRS does not require your consent to any provision of this document other than the certifications required to avoid backup withholding.
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x
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x
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Signature* (Owner, Trustee, Etc.)
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Date
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Signature* (Joint Owner, Co-Trustee)
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Date
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*
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If shares are to be registered in (1) joint names, both persons should sign, (2) a custodians name, the custodian should sign, (3) a trust, the
trustee(s) should sign, or (4) a corporation or other entity, an officer or other authorized person should sign and print name and title above. Persons signing as representatives or fiduciaries of corporations, partnerships, trusts or other
organizations are required to furnish corporate resolutions or similar documents providing evidence that they are authorized to effect securities transactions on behalf of the Investor (alternatively, the secretary or another designated officer of
the entity may certify the authority of the persons signing on the space provided above).
|
Mail to: Boston
Financial Data Services, P.O. Box 8123, Boston, MA 02266-8123
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For Authorized Dealer Use Only
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We hereby authorize the Transfer Agent to act as our agent in connection with the transactions authorized by the Subscription Agreement and agree to notify the Transfer
Agent of any purchases made under a Letter of Intention, Rights of Accumulation or Aggregating Accounts. If the Subscription Agreement includes a telephone redemption privilege, we guarantee the signature(s) above.
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Dealers Name
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Dealer Number
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Main Office Address
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Branch Number
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( )
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Representatives Name
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Rep. Number
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Branch Address
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Telephone Number
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Authorized Signature of Dealer
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Date
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Cohen & Steers Preferred Securities and Income Fund
TO OBTAIN ADDITIONAL INFORMATION ABOUT THE FUND
If you would like additional information about Cohen & Steers Preferred Securities and Income Fund, Inc., the following documents are available to you without any charge either upon request or at
www.cohenandsteers.com:
|
|
Annual/Semi-Annual Reports
Additional information about the Funds investments will be available in the Funds annual and
semi-annual reports to shareholders. In these reports, you will find a discussion of the market conditions and investment strategies that significantly affected the Funds performance during its most recent fiscal period.
|
|
|
Statement of Additional Information
Additional information about the Funds investments, structure and operations can be found in the
SAI. The information presented in the SAI is incorporated by reference into this Prospectus and is legally considered to be part of the Prospectus.
|
To request a free copy of any of the materials described above as well as other information, or to make any other inquiries, please contact us:
|
|
|
By telephone
|
|
(800) 437-9912
|
By mail
|
|
Cohen & Steers Preferred Securities and Income Fund, Inc.
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|
|
c/o Boston Financial Data Services
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|
P.O. Box 8123
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Boston, Massachusetts 02266-8123
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By e-mail
|
|
marketing@cohenandsteers.com
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On the Internet
|
|
www.cohenandsteers.com
|
This information may also be available from your broker or financial intermediary. In addition, information about the Fund
(including the Funds SAI) may be obtained from the SEC:
|
|
By going to the SECs Public Reference Room in Washington, D.C. where you can review and copy the information. Information on the operation of the
Public Reference Room may be obtained by calling the SEC at (202) 551-8090.
|
|
|
By accessing the SECs Internet site at
http://www.sec.gov
where you can view, download and print the information.
|
|
|
By electronic request at the following e-mail address: publicinfo@sec.gov, or by writing to the Public Reference Section of the SEC, Washington, D.C.
20549-1520. Upon payment of a duplicating fee, copies of the information will be sent to you.
|
280 PARK
AVENUE, NEW YORK, NEW YORK 10017
SEC File No. 811-22392
CPXAXPROI-0513
Mad Catz Interactive (CE) (USOTC:MCZAF)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Mad Catz Interactive (CE) (USOTC:MCZAF)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024