Cohen & Steers Fund Distribution Insights and Performance Data

Understanding Distribution Sources and Performance

As shareholders of Cohen & Steers REIT and Preferred and Income Fund, Inc. (NYSE: RNP), it’s vital to stay informed about the distribution sources and overall fund performance. The fund has cultivated a reputation for delivering returns through a strategic managed distribution policy.

Managed Distribution Policy Insight

In late 2017, this fund adopted a managed distribution policy designed to enhance total return potential by providing regular monthly distributions at a fixed rate per common share. This approach allows greater flexibility in realizing long-term capital gains, which can be regularly distributed to shareholders throughout the year. The board holds the authority to amend or suspend this policy, and any such changes could potentially impact the market value of the fund's shares.

Distribution Composition

The monthly distributions from the fund may consist of several components, including long-term capital gains, short-term capital gains, net investment income, and return of capital. It's important to note that a return of capital merely signifies that shareholders receive back some money invested in the fund, rather than reflecting the actual performance of investments. For federal income tax purposes, this return of capital should not be confused with regular income.

Distribution Amounts and Sources

At the conclusion of each monthly payout, detailed information regarding these distributions will be made available on cohenandsteers.com and sent directly to shareholders. Keep in mind that these figures are estimates and can fluctuate as final tax characteristics, determined after the year's end, are clarified.

Distribution Breakdown

The estimated distribution amounts are noteworthy. Currently, the total distribution for September is approximately $0.1360 per share, with over half sourced from net investment income. The cumulative total distributions this year reflect a blend of capital returns, showcasing how the fund has managed its returns and payouts efficiently.

Annual Performance Review

The fund's performance for the fiscal year offers insights into its efficacy. The year-to-date cumulative total return reaching 6.48% and an average annual total return over the last five years of 7.26% reflect the strategic decisions made by the fund's management. Additionally, the current annualized distribution rate stands at 7.66%, indicating robust dividend potential for shareholders.

Investment Considerations

Before diving into investments with Cohen & Steers, it’s critical for potential investors to dissect the associated risks, objectives, and expenses. Periodic reports and filings reveal valuable insights and should be thoroughly reviewed. Although these documents are accessible online, contacting a financial advisor for personalized advice can be beneficial.

Market Value Insights

It’s also essential to distinguish between the net asset value (NAV) of the fund and the actual market price per share. The NAV reflects the total asset value minus liabilities divided by outstanding shares. However, the market price fluctuates based on supply and demand in active trading environments.

Returning Capital and its Implications

Shareholders often find value in understanding the implications of receiving returns of capital. While it is a mechanism for distributing wealth back to investors, it does not directly indicate the investment performance. Recognizing how these distributions factor into overall investment strategies can enhance shareholder decision-making.

About Cohen & Steers

Cohen & Steers stands as a premier global investment management firm, specializing in real assets like real estate investment trusts (REITs), preferred securities, infrastructure, and more. Since its inception in 1986, Cohen & Steers has leveraged its expertise to provide investors with alternative income strategies, maintaining a commitment to transparency and value for its shareholders.

Frequently Asked Questions

What is the Cohen & Steers REIT and Preferred Fund?

The fund focuses on providing returns through investments in real estate and other income-generating assets.

How are distributions determined for the fund?

They are based on various factors, including net investment income and realized capital gains, aimed at delivering consistent shareholder returns.

What is the significance of the managed distribution policy?

This policy allows the fund to regularize distributions, enhancing appeal to income-focused investors.

How do returns of capital affect my investment?

While they indicate cash back to investors, they may not directly reflect the success or performance of the underlying investments.

Where can I find more resources regarding the fund?

Shareholders can access updated periodic reports and other critical documents through the fund's website or by consulting their financial advisor.

About The Author

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