COHEN & STEERS REIT AND PREFERRED AND INCOME FUND, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2025 (Unaudited)
| Shares | Value | |||||||||||
| COMMON STOCK—REAL ESTATE |
70.0 | % | ||||||||||
| APARTMENT |
4.1 | % | ||||||||||
| AvalonBay Communities, Inc.(a) |
|
32,344 | $ | 6,941,669 | ||||||||
| Essex Property Trust, Inc.(a) |
|
25,951 | 7,955,798 | |||||||||
| UDR, Inc.(a) |
|
596,106 | 26,926,108 | |||||||||
|
|
|
|||||||||||
| 41,823,575 | ||||||||||||
|
|
|
|||||||||||
| DATA CENTERS |
7.0 | % | ||||||||||
| Digital Realty Trust, Inc.(a) |
|
297,536 | 42,633,933 | |||||||||
| Equinix, Inc. |
|
35,511 | 28,953,894 | |||||||||
|
|
|
|||||||||||
| 71,587,827 | ||||||||||||
|
|
|
|||||||||||
| FREE STANDING |
2.8 | % | ||||||||||
| Agree Realty Corp.(a) |
|
103,313 | 7,974,731 | |||||||||
| NETSTREIT Corp. |
|
410,377 | 6,504,475 | |||||||||
| Realty Income Corp.(a) |
|
247,006 | 14,328,818 | |||||||||
|
|
|
|||||||||||
| 28,808,024 | ||||||||||||
|
|
|
|||||||||||
| GAMING |
1.5 | % | ||||||||||
| VICI Properties, Inc., Class A |
|
472,335 | 15,407,568 | |||||||||
|
|
|
|||||||||||
| HEALTH CARE |
11.6 | % | ||||||||||
| Healthcare Realty Trust, Inc., Class A |
|
1,215,621 | 20,543,995 | |||||||||
| Omega Healthcare Investors, Inc. |
|
407,338 | 15,511,431 | |||||||||
| Welltower, Inc.(b) |
|
531,627 | 81,450,573 | |||||||||
|
|
|
|||||||||||
| 117,505,999 | ||||||||||||
|
|
|
|||||||||||
| HOTEL |
1.7 | % | ||||||||||
| Host Hotels & Resorts, Inc.(a)(b) |
|
1,200,483 | 17,058,863 | |||||||||
|
|
|
|||||||||||
| INDUSTRIALS |
5.7 | % | ||||||||||
| Americold Realty Trust, Inc. |
|
452,762 | 9,716,273 | |||||||||
| Lineage, Inc.(c) |
|
61,115 | 3,583,143 | |||||||||
| Prologis, Inc.(a) |
|
403,367 | 45,092,397 | |||||||||
|
|
|
|||||||||||
| 58,391,813 | ||||||||||||
|
|
|
|||||||||||
| MANUFACTURED HOME |
3.0 | % | ||||||||||
| Equity LifeStyle Properties, Inc.(a) |
|
46,411 | 3,095,614 | |||||||||
| Sun Communities, Inc.(a) |
|
215,004 | 27,658,114 | |||||||||
|
|
|
|||||||||||
| 30,753,728 | ||||||||||||
|
|
|
|||||||||||
| OFFICE |
0.9 | % | ||||||||||
| BXP, Inc. |
|
55,535 | 3,731,397 | |||||||||
| Highwoods Properties, Inc.(a)(d) |
|
188,322 | 5,581,864 | |||||||||
|
|
|
|||||||||||
| 9,313,261 | ||||||||||||
|
|
|
|||||||||||
| REGIONAL MALL |
2.0 | % | ||||||||||
| Simon Property Group, Inc.(a)(d) |
|
122,820 | 20,397,946 | |||||||||
|
|
|
|||||||||||
| SELF STORAGE |
5.4 | % | ||||||||||
| Extra Space Storage, Inc.(a) |
|
177,784 | 26,399,146 | |||||||||
| Public Storage(a)(b)(d) |
|
95,057 | 28,449,610 | |||||||||
|
|
|
|||||||||||
| 54,848,756 | ||||||||||||
|
|
|
|||||||||||
| SHOPPING CENTER |
1.3 | % | ||||||||||
| Kimco Realty Corp.(a)(d) |
|
634,891 | 13,485,085 | |||||||||
|
|
|
|||||||||||
1
| Shares | Value | |||||||||||
| SINGLE FAMILY HOMES |
4.2 | % | ||||||||||
| Invitation Homes, Inc.(a) |
|
1,228,264 | $ | 42,805,000 | ||||||||
|
|
|
|||||||||||
| SPECIALTY |
3.4 | % | ||||||||||
| Iron Mountain, Inc.(a) |
|
243,052 | 20,912,194 | |||||||||
| Lamar Advertising Co., Class A(a)(d) |
|
121,058 | 13,773,979 | |||||||||
|
|
|
|||||||||||
| 34,686,173 | ||||||||||||
|
|
|
|||||||||||
| TELECOMMUNICATIONS |
12.7 | % | ||||||||||
| American Tower Corp.(a) |
|
353,059 | 76,825,639 | |||||||||
| Crown Castle, Inc.(a) |
|
362,402 | 37,773,161 | |||||||||
| SBA Communications Corp., Class A(a) |
|
66,110 | 14,544,861 | |||||||||
|
|
|
|||||||||||
| 129,143,661 | ||||||||||||
|
|
|
|||||||||||
| TIMBERLAND |
2.7 | % | ||||||||||
| Rayonier, Inc. |
|
294,405 | 8,208,011 | |||||||||
| Weyerhaeuser Co.(a)(d) |
|
645,989 | 18,914,558 | |||||||||
|
|
|
|||||||||||
| 27,122,569 | ||||||||||||
|
|
|
|||||||||||
| TOTAL COMMON STOCK |
|
713,139,848 | ||||||||||
|
|
|
|||||||||||
| PREFERRED SECURITIES—EXCHANGE-TRADED |
11.3 | % | ||||||||||
| BANKING |
4.6 | % | ||||||||||
| Bank of America Corp., 4.25%, Series QQ(a)(d)(e) |
|
221,886 | 3,989,510 | |||||||||
| Bank of America Corp., 4.75%, Series SS(a)(e) |
|
91,608 | 1,833,992 | |||||||||
| Bank of America Corp., 5.00%, Series LL(a)(e) |
|
84,172 | 1,772,662 | |||||||||
| Bank of America Corp., 5.375%, Series KK(a)(e) |
|
133,113 | 2,988,387 | |||||||||
| Bank of America Corp., 6.00%, Series GG(a)(e) |
|
137,567 | 3,426,794 | |||||||||
| Bank of New York Mellon Corp., 6.15% to 3/20/30, Series K(e)(f) |
|
88,103 | 2,246,627 | |||||||||
| Brookfield Finance, Inc., 4.625%, due 10/16/80, Series 50 (Canada)(a) |
|
88,400 | 1,386,996 | |||||||||
| Federal Agricultural Mortgage Corp., 4.875%, Series G(a)(e) |
|
93,596 | 1,834,482 | |||||||||
| JPMorgan Chase & Co., 4.55%, Series JJ(e) |
|
34,195 | 669,538 | |||||||||
| JPMorgan Chase & Co., 5.75%, Series DD(a)(e) |
|
29,951 | 736,495 | |||||||||
| M&T Bank Corp., 7.50%, Series J(a)(d)(e) |
|
153,200 | 3,998,520 | |||||||||
| Regions Financial Corp., 5.70% to 5/15/29, Series C(a)(e)(f) |
|
67,200 | 1,587,936 | |||||||||
| U.S. Bancorp, 4.00%, Series M(e) |
|
59,019 | 976,765 | |||||||||
| Wells Fargo & Co., 4.25%, Series DD(a)(e) |
|
201,775 | 3,567,382 | |||||||||
| Wells Fargo & Co., 4.375%, Series CC(a)(d)(e) |
|
232,850 | 4,191,300 | |||||||||
| Wells Fargo & Co., 4.70%, Series AA(a)(d)(e) |
|
202,352 | 3,889,205 | |||||||||
| Wells Fargo & Co., 4.75%, Series Z(a)(e) |
|
183,485 | 3,653,186 | |||||||||
| Wells Fargo & Co., 5.625%, Series Y(a)(e) |
|
87,479 | 2,036,511 | |||||||||
| Wells Fargo & Co., 7.50%, Series L (Convertible)(a)(e) |
|
1,801 | 2,162,641 | |||||||||
|
|
|
|||||||||||
| 46,948,929 | ||||||||||||
|
|
|
|||||||||||
| BROKERAGE |
1.6 | % | ||||||||||
| Morgan Stanley, 4.25%, Series O(a)(e) |
|
90,749 | 1,627,130 | |||||||||
| Morgan Stanley, 5.85%, Series K(a)(e) |
|
120,613 | 2,864,559 | |||||||||
| Morgan Stanley, 6.375%, Series I(a)(e) |
|
179,679 | 4,466,820 | |||||||||
| Morgan Stanley, 6.50%, Series P(a)(e) |
|
20,220 | 510,555 | |||||||||
| Morgan Stanley, 6.625%, Series Q(a)(e) |
|
288,405 | 7,354,327 | |||||||||
|
|
|
|||||||||||
| 16,823,391 | ||||||||||||
|
|
|
|||||||||||
| CONSUMER DISCRETIONARY PRODUCTS |
0.1 | % | ||||||||||
| Ford Motor Co., Senior Debt, 6.50%, due 8/15/62 |
|
29,877 | 678,507 | |||||||||
|
|
|
|||||||||||
2
| Shares | Value | |||||||||||
| CONSUMER STAPLE PRODUCTS |
0.3 | % | ||||||||||
| CHS, Inc., 7.10%, Series 2(a)(e) |
110,595 | $ | 2,764,875 | |||||||||
|
|
|
|||||||||||
| FINANCE |
0.6 | % | ||||||||||
| Affiliated Managers Group, Inc., 6.75%, due 3/30/64(a) |
|
70,138 | 1,683,312 | |||||||||
| Apollo Global Management, Inc., 7.625% to 9/15/28, due 9/15/53(a)(f) |
|
80,059 | 2,075,930 | |||||||||
| TPG Operating Group II LP, 6.95%, due 3/15/64(a) |
|
89,828 | 2,245,700 | |||||||||
|
|
|
|||||||||||
| 6,004,942 | ||||||||||||
|
|
|
|||||||||||
| INDUSTRIALS |
0.3 | % | ||||||||||
| LXP Industrial Trust, 6.50%, Series C(a)(e) |
|
76,536 | 3,490,041 | |||||||||
|
|
|
|||||||||||
| INSURANCE |
2.0 | % | ||||||||||
| Allstate Corp., 7.375%, Series J(a)(e) |
|
27,335 | 715,357 | |||||||||
| Arch Capital Group Ltd., 4.55%, Series G(a)(e) |
|
95,994 | 1,673,175 | |||||||||
| Assurant, Inc., 5.25%, due 1/15/61(a) |
|
31,954 | 613,836 | |||||||||
| Athene Holding Ltd., 4.875%, Series D(a)(e) |
|
102,832 | 1,758,427 | |||||||||
| Athene Holding Ltd., 6.35% to 6/30/29, Series A(a)(e)(f) |
|
118,320 | 2,878,726 | |||||||||
| Athene Holding Ltd., 7.25% to 3/30/29, due 3/30/64(a)(f) |
|
98,556 | 2,484,597 | |||||||||
| Athene Holding Ltd., 7.75% to 12/30/27, Series E(a)(e)(f) |
|
85,591 | 2,238,205 | |||||||||
| Corebridge Financial, Inc., 6.375%, due 12/15/64 |
|
47,222 | 1,174,883 | |||||||||
| Equitable Holdings, Inc., 4.30%, Series C(e) |
|
39,419 | 662,239 | |||||||||
| Equitable Holdings, Inc., 5.25%, Series A(a)(e) |
|
69,831 | 1,439,217 | |||||||||
| F&G Annuities & Life, Inc., Senior Debt, 7.95%, due 12/15/53(a) |
|
78,867 | 2,017,418 | |||||||||
| Lincoln National Corp., 9.00%, Series D(e) |
|
81,699 | 2,173,193 | |||||||||
| RenaissanceRe Holdings Ltd., 4.20%, Series G (Bermuda)(a)(e) |
|
39,843 | 631,512 | |||||||||
|
|
|
|||||||||||
| 20,460,785 | ||||||||||||
|
|
|
|||||||||||
| REGIONAL MALL |
0.0 | % | ||||||||||
| Brookfield Property Partners LP, 5.75%, Series A(e) |
|
18,661 | 231,583 | |||||||||
|
|
|
|||||||||||
| TELECOMMUNICATION SERVICES |
0.7 | % | ||||||||||
| AT&T, Inc., 4.75%, Series C(e) |
|
70,607 | 1,346,476 | |||||||||
| AT&T, Inc., 5.00%, Series A(e) |
|
81,345 | 1,643,982 | |||||||||
| Telephone & Data Systems, Inc., 6.00%, Series VV(e) |
|
42,128 | 743,559 | |||||||||
| U.S. Cellular Corp., Senior Debt, 5.50%, due 3/1/70 |
|
30,877 | 681,455 | |||||||||
| U.S. Cellular Corp., Senior Debt, 5.50%, due 6/1/70(a) |
|
38,100 | 842,772 | |||||||||
| U.S. Cellular Corp., Senior Debt, 6.25%, due 9/1/69(a) |
|
91,121 | 2,172,325 | |||||||||
|
|
|
|||||||||||
| 7,430,569 | ||||||||||||
|
|
|
|||||||||||
| UTILITIES |
1.1 | % | ||||||||||
| Brookfield BRP Holdings Canada, Inc., 4.625% (Canada)(a)(e) |
|
78,000 | 1,144,260 | |||||||||
| Brookfield BRP Holdings Canada, Inc., 4.875% (Canada)(a)(e) |
|
60,941 | 963,477 | |||||||||
| Brookfield Infrastructure Finance ULC, 5.00%, due 5/24/81 (Canada)(a) |
|
58,890 | 970,507 | |||||||||
| Brookfield Infrastructure Partners LP, 5.125%, Series 13 (Canada)(a)(e) |
|
84,096 | 1,401,039 | |||||||||
| SCE Trust VI, 5.00%(e) |
|
19,786 | 339,330 | |||||||||
| SCE Trust VII, 7.50%, Series M(a)(e) |
|
159,752 | 3,674,296 | |||||||||
| SCE Trust VIII, 6.95%, Series N(a)(e) |
|
97,636 | 2,217,314 | |||||||||
|
|
|
|||||||||||
| 10,710,223 | ||||||||||||
|
|
|
|||||||||||
| TOTAL PREFERRED SECURITIES—EXCHANGE-TRADED |
|
115,543,845 | ||||||||||
|
|
|
|||||||||||
3
| Principal Amount* |
Value | |||||||||||
| PREFERRED SECURITIES—OVER-THE-COUNTER |
58.9 | % | ||||||||||
| BANKING |
34.0 | % | ||||||||||
| ABN AMRO Bank NV, 6.375% to 9/22/34 (Netherlands)(e)(f)(g)(h) |
|
EUR | 400,000 | $ | 435,493 | |||||||
| ABN AMRO Bank NV, 6.875% to 9/22/31 (Netherlands)(e)(f)(g)(h) |
|
EUR | 2,200,000 | 2,488,882 | ||||||||
| AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 6.95% to 12/10/29, due 3/10/55 (Ireland)(f) |
|
2,130,000 | 2,180,932 | |||||||||
| AIB Group PLC, 6.00% to 7/14/31 (Ireland)(e)(f)(g)(h) |
|
EUR | 1,400,000 | 1,476,996 | ||||||||
| AIB Group PLC, 7.125% to 10/30/29 (Ireland)(e)(f)(g)(h) |
|
EUR | 2,000,000 | 2,265,982 | ||||||||
| Ally Financial, Inc., 4.70% to 5/15/28, Series C(a)(d)(e)(f) |
|
5,500,000 | 4,743,722 | |||||||||
| Alpha Services & Holdings SA, 11.875% to 2/8/28 (Greece)(e)(f)(g)(h) |
|
EUR | 600,000 | 755,832 | ||||||||
| Banco Bilbao Vizcaya Argentaria SA, 9.375% to 3/19/29 (Spain)(e)(f)(g) |
|
2,400,000 | 2,611,858 | |||||||||
| Banco Santander SA, 7.00% to 11/20/29 (Spain)(e)(f)(g)(h) |
|
EUR | 1,200,000 | 1,362,687 | ||||||||
| Banco Santander SA, 8.00% to 2/1/34 (Spain)(a)(d)(e)(f)(g) |
|
5,000,000 | 5,205,675 | |||||||||
| Banco Santander SA, 9.625% to 11/21/28 (Spain)(a)(e)(f)(g) |
|
2,200,000 | 2,420,777 | |||||||||
| Banco Santander SA, 9.625% to 5/21/33 (Spain)(a)(d)(e)(f)(g) |
|
4,800,000 | 5,525,674 | |||||||||
| Bank of America Corp., 5.875% to 3/15/28, Series FF(a)(e)(f) |
|
2,916,000 | 2,942,400 | |||||||||
| Bank of America Corp., 6.125% to 4/27/27, Series TT(a)(d)(e)(f) |
|
3,442,000 | 3,493,451 | |||||||||
| Bank of Ireland Group PLC, 6.375% to 3/10/30 (Ireland)(e)(f)(g)(h) |
|
EUR | 800,000 | 874,784 | ||||||||
| Bank of Montreal, 7.30% to 11/26/34, due 11/26/84 (Canada)(a)(f) |
|
3,010,000 | 3,004,635 | |||||||||
| Bank of Nova Scotia, 7.35% to 4/27/30, due 4/27/85 (Canada)(a)(f) |
|
2,400,000 | 2,383,761 | |||||||||
| Bank of Nova Scotia, 8.00% to 1/27/29, due 1/27/84 (Canada)(a)(f) |
|
1,800,000 | 1,863,598 | |||||||||
| Bank of Nova Scotia, 8.625% to 10/27/27, due 10/27/82 (Canada)(a)(f) |
|
3,200,000 | 3,354,442 | |||||||||
| Barclays Bank PLC, 6.278% to 12/15/34, Series 1 (United Kingdom)(e)(f) |
|
700,000 | 748,720 | |||||||||
| Barclays PLC, 6.125% to 12/15/25 (United Kingdom)(a)(e)(f)(g) |
|
1,600,000 | 1,600,764 | |||||||||
| Barclays PLC, 7.625% to 3/15/35 (United Kingdom)(a)(d)(e)(f)(g) |
|
3,800,000 | 3,725,694 | |||||||||
| Barclays PLC, 8.00% to 3/15/29 (United Kingdom)(a)(e)(f)(g) |
|
2,100,000 | 2,170,272 | |||||||||
| Barclays PLC, 8.875% to 9/15/27 (United Kingdom)(e)(f)(g)(h) |
|
GBP | 2,300,000 | 3,097,693 | ||||||||
| Barclays PLC, 9.25% to 9/15/28 (United Kingdom)(e)(f)(g) |
|
GBP | 1,400,000 | 1,916,986 | ||||||||
| Barclays PLC, 9.625% to 12/15/29 (United Kingdom)(a)(d)(e)(f)(g) |
|
6,300,000 | 6,925,911 | |||||||||
| BNP Paribas SA, 4.625% to 1/12/27 (France)(a)(e)(f)(g)(i) |
|
2,200,000 | 2,116,012 | |||||||||
| BNP Paribas SA, 4.625% to 2/25/31 (France)(a)(e)(f)(g)(i) |
|
4,126,000 | 3,561,969 | |||||||||
| BNP Paribas SA, 7.375% to 9/10/34 (France)(a)(e)(f)(g)(i) |
|
2,800,000 | 2,806,620 | |||||||||
| BNP Paribas SA, 7.75% to 8/16/29 (France)(a)(d)(e)(f)(g)(i) |
|
6,800,000 | 7,021,041 | |||||||||
| BNP Paribas SA, 8.00% to 8/22/31 (France)(e)(f)(g)(i) |
|
1,400,000 | 1,458,062 | |||||||||
| BNP Paribas SA, 8.50% to 8/14/28 (France)(a)(e)(f)(g)(i) |
|
6,800,000 | 7,128,610 | |||||||||
| BNP Paribas SA, 9.25% to 11/17/27 (France)(a)(d)(e)(f)(g)(i) |
|
3,800,000 | 4,070,849 | |||||||||
| BPER Banca SpA, 6.50% to 3/20/30 (Italy)(e)(f)(g)(h) |
|
EUR | 600,000 | 661,788 | ||||||||
| CaixaBank SA, 6.25% to 7/24/32 (Spain)(e)(f)(g)(h) |
|
EUR | 2,000,000 | 2,168,006 | ||||||||
| CaixaBank SA, 7.50% to 1/16/30 (Spain)(e)(f)(g)(h) |
|
EUR | 1,200,000 | 1,399,742 | ||||||||
| Charles Schwab Corp., 4.00% to 6/1/26, Series I(a)(d)(e)(f) |
|
9,868,000 | 9,631,027 | |||||||||
| Charles Schwab Corp., 4.00% to 12/1/30, Series H(a)(d)(e)(f) |
|
7,817,000 | 6,937,579 | |||||||||
| Citigroup Capital III, 7.625%, due 12/1/36(a)(d) |
|
4,700,000 | 5,231,137 | |||||||||
| Citigroup, Inc., 3.875% to 2/18/26, Series X(a)(d)(e)(f) |
|
1,599,000 | 1,566,028 | |||||||||
| Citigroup, Inc., 4.15% to 11/15/26, Series Y(a)(d)(e)(f) |
|
1,256,000 | 1,221,034 | |||||||||
| Citigroup, Inc., 6.25% to 8/15/26, Series T(a)(e)(f) |
|
2,414,000 | 2,434,389 | |||||||||
| Citigroup, Inc., 6.95% to 2/15/30, Series FF(a)(d)(e)(f) |
|
10,945,000 | 10,940,817 | |||||||||
| Citigroup, Inc., 7.00% to 8/15/34, Series DD(a)(d)(e)(f) |
|
4,425,000 | 4,598,748 | |||||||||
| Citigroup, Inc., 7.625% to 11/15/28, Series AA(a)(d)(e)(f) |
|
4,228,000 | 4,409,225 | |||||||||
| CoBank ACB, 6.25% to 10/1/26, Series I(b)(e)(f) |
|
4,334,000 | 4,341,286 | |||||||||
| CoBank ACB, 6.45% to 10/1/27, Series K(e)(f) |
|
2,740,000 | 2,743,155 | |||||||||
| CoBank ACB, 7.125% to 1/1/30, Series M(e)(f) |
|
2,000,000 | 2,036,258 | |||||||||
4
| Principal Amount* |
Value | |||||||||
| Commerzbank AG, 7.50% to 10/9/30 (Germany)(e)(f)(g)(h) |
2,400,000 | $ | 2,407,565 | |||||||
| Commerzbank AG, 7.875% to 10/9/31 (Germany)(e)(f)(g)(h) |
EUR | 1,000,000 | 1,176,389 | |||||||
| Coventry Building Society, 8.75% to 6/11/29 (United Kingdom)(e)(f)(g)(h) |
GBP | 1,600,000 | 2,140,153 | |||||||
| Credit Agricole SA, 5.875% to 3/23/35 (France)(e)(f)(g)(h) |
EUR | 800,000 | 834,084 | |||||||
| Credit Suisse Group AG, 5.25%, Claim (Switzerland)(e)(g)(i)(j)(k) |
1,200,000 | 96,000 | ||||||||
| Credit Suisse Group AG, 6.375%, Claim (Switzerland)(e)(g)(i)(j)(k) |
1,200,000 | 96,000 | ||||||||
| Credit Suisse Group AG, 7.50%, Claim (Switzerland)(e)(g)(i)(j)(k) |
1,000,000 | 80,000 | ||||||||
| Deutsche Bank AG, 7.375% to 10/30/31 (Germany)(e)(f)(g)(h) |
EUR | 3,200,000 | 3,503,432 | |||||||
| Deutsche Bank AG, 8.125% to 10/30/29 (Germany)(e)(f)(g)(h) |
EUR | 2,200,000 | 2,505,426 | |||||||
| Erste Group Bank AG, 7.00% to 4/15/31 (Austria)(e)(f)(g)(h) |
EUR | 1,400,000 | 1,579,890 | |||||||
| Farm Credit Bank of Texas, 5.70% to 9/15/25, Series 4(e)(f)(i) |
2,875,000 | 2,875,000 | ||||||||
| Farm Credit Bank of Texas, 7.75% to 6/15/29(e)(f) |
1,655,000 | 1,729,473 | ||||||||
| First Horizon Bank, 5.401% (3 Month USD Term SOFR + 1.112%, Floor 3.75%)(a)(e)(i)(l) |
2,800 | † | 2,016,000 | |||||||
| Goldman Sachs Group, Inc., 3.65% to 8/10/26, Series U(a)(e)(f) |
2,951,000 | 2,871,234 | ||||||||
| HSBC Holdings PLC, 6.00% to 5/22/27 (United Kingdom)(e)(f)(g) |
1,000,000 | 995,905 | ||||||||
| HSBC Holdings PLC, 6.50%, due 9/15/37 (United Kingdom)(a) |
2,100,000 | 2,238,447 | ||||||||
| HSBC Holdings PLC, 6.50% to 3/23/28 (United Kingdom)(a)(e)(f)(g) |
1,700,000 | 1,707,407 | ||||||||
| HSBC Holdings PLC, 6.875% to 9/11/29 (United Kingdom)(e)(f)(g) |
1,400,000 | 1,404,178 | ||||||||
| HSBC Holdings PLC, 8.00% to 3/7/28 (United Kingdom)(a)(d)(e)(f)(g) |
1,600,000 | 1,687,901 | ||||||||
| Huntington Bancshares, Inc., 4.45% to 10/15/27, Series G(a)(e)(f) |
3,043,000 | 2,935,874 | ||||||||
| Huntington Bancshares, Inc., 5.625% to 7/15/30, Series F(a)(e)(f) |
4,061,000 | 4,047,744 | ||||||||
| ING Groep NV, 4.875% to 5/16/29 (Netherlands)(e)(f)(g)(h) |
3,030,000 | 2,785,721 | ||||||||
| ING Groep NV, 5.75% to 11/16/26 (Netherlands)(a)(d)(e)(f)(g) |
2,200,000 | 2,184,529 | ||||||||
| ING Groep NV, 7.25% to 11/16/34 (Netherlands)(e)(f)(g)(h) |
4,400,000 | 4,460,500 | ||||||||
| ING Groep NV, 7.50% to 5/16/28 (Netherlands)(e)(f)(g)(h) |
1,800,000 | 1,848,996 | ||||||||
| ING Groep NV, 8.00% to 5/16/30 (Netherlands)(e)(f)(g)(h) |
4,800,000 | 5,047,800 | ||||||||
| Intesa Sanpaolo SpA, 7.00% to 5/20/32 (Italy)(e)(f)(g)(h) |
EUR | 1,400,000 | 1,585,431 | |||||||
| JPMorgan Chase & Co., 6.50% to 4/1/30, Series OO(a)(e)(f) |
2,170,000 | 2,226,296 | ||||||||
| JPMorgan Chase & Co., 6.875% to 6/1/29, Series NN(a)(d)(e)(f) |
6,094,000 | 6,415,757 | ||||||||
| Julius Baer Group Ltd., 7.50% to 8/19/30 (Switzerland)(e)(f)(g)(h) |
1,800,000 | 1,789,623 | ||||||||
| KBC Group NV, 6.25% to 9/17/31 (Belgium)(e)(f)(g)(h) |
EUR | 600,000 | 660,586 | |||||||
| Lloyds Banking Group PLC, 6.75% to 9/27/31 (United Kingdom)(a)(d)(e)(f)(g) |
3,200,000 | 3,049,788 | ||||||||
| Lloyds Banking Group PLC, 7.50% to 6/27/30 (United Kingdom)(e)(f)(g) |
GBP | 2,200,000 | 2,774,355 | |||||||
| Lloyds Banking Group PLC, 8.00% to 9/27/29 (United Kingdom)(e)(f)(g) |
1,400,000 | 1,456,384 | ||||||||
| M&T Bank Corp., 3.50% to 9/1/26, Series I(e)(f) |
861,000 | 818,828 | ||||||||
| Nationwide Building Society, 7.50% to 12/20/30 (United Kingdom)(e)(f)(g)(h) |
GBP | 1,200,000 | 1,541,380 | |||||||
| NatWest Group PLC, 6.00% to 12/29/25 (United Kingdom)(a)(e)(f)(g) |
1,400,000 | 1,401,256 | ||||||||
| NatWest Group PLC, 7.50% to 2/28/32 (United Kingdom)(e)(f)(g) |
GBP | 1,400,000 | 1,760,375 | |||||||
| NatWest Group PLC, 8.00% to 8/10/25 (United Kingdom)(a)(e)(f)(g) |
700,000 | 704,164 | ||||||||
| NatWest Group PLC, 8.125% to 11/10/33 (United Kingdom)(e)(f)(g) |
800,000 | 841,902 | ||||||||
| Nordea Bank Abp, 6.625% to 3/26/26 (Finland)(a)(e)(f)(g)(i) |
1,470,000 | 1,478,151 | ||||||||
| Piraeus Financial Holdings SA, 8.75% to 6/16/26 (Greece)(e)(f)(g)(h) |
EUR | 1,300,000 | 1,465,204 | |||||||
| PNC Financial Services Group, Inc., 6.00% to 5/15/27, Series U(a)(d)(e)(f) |
4,401,000 | 4,428,717 | ||||||||
| PNC Financial Services Group, Inc., 6.20% to 9/15/27, Series V(a)(d)(e)(f) |
3,973,000 | 4,038,145 | ||||||||
| PNC Financial Services Group, Inc., 6.25% to 3/15/30, Series W(a)(d)(e)(f) |
5,282,000 | 5,322,249 | ||||||||
| Regions Financial Corp., 5.75% to 6/15/25, Series D(a)(e)(f) |
1,472,000 | 1,467,555 | ||||||||
| Skandinaviska Enskilda Banken AB, 6.875% to 6/30/27 (Sweden)(e)(f)(g)(h) |
1,200,000 | 1,218,750 | ||||||||
| Societe Generale SA, 5.375% to 11/18/30 (France)(a)(e)(f)(g)(i) |
2,600,000 | 2,285,304 | ||||||||
| Societe Generale SA, 6.75% to 4/6/28 (France)(e)(f)(g)(i) |
800,000 | 780,577 | ||||||||
| Societe Generale SA, 8.125% to 11/21/29 (France)(a)(e)(f)(g)(i) |
3,000,000 | 2,995,978 | ||||||||
5
| Principal Amount* |
Value | |||||||||||
| Societe Generale SA, 9.375% to 11/22/27 (France)(a)(d)(e)(f)(g)(i) |
|
5,200,000 | $ | 5,495,391 | ||||||||
| Societe Generale SA, 10.00% to 11/14/28 (France)(a)(e)(f)(g)(i) |
|
3,200,000 | 3,468,394 | |||||||||
| Standard Chartered PLC, 7.875% to 3/8/30 (United Kingdom)(a)(e)(f)(g)(i) |
|
3,800,000 | 3,925,035 | |||||||||
| State Street Corp., 6.70% to 3/15/29, Series I(a)(d)(e)(f) |
|
3,784,000 | 3,889,070 | |||||||||
| State Street Corp., 6.70% to 9/15/29, Series J(a)(e)(f) |
|
3,180,000 | 3,263,726 | |||||||||
| Stichting AK Rabobank Certificaten, 6.50% (Netherlands)(e)(h) |
|
EUR | 3,080,950 | 3,754,755 | ||||||||
| Swedbank AB, 7.75% to 3/17/30 (Sweden)(e)(f)(g)(h) |
|
2,800,000 | 2,896,250 | |||||||||
| Toronto-Dominion Bank, 7.25% to 7/31/29, due 7/31/84 (Canada)(f) |
|
1,400,000 | 1,410,577 | |||||||||
| Toronto-Dominion Bank, 8.125% to 10/31/27, due 10/31/82 (Canada)(a)(d)(f) |
|
5,600,000 | 5,806,668 | |||||||||
| Truist Financial Corp., 4.95% to 9/1/25, Series P(a)(d)(e)(f) |
|
898,000 | 893,683 | |||||||||
| Truist Financial Corp., 5.10% to 3/1/30, Series Q(a)(e)(f) |
|
3,278,000 | 3,187,191 | |||||||||
| Truist Financial Corp., 5.125% to 12/15/27, Series M(a)(d)(e)(f) |
|
2,460,000 | 2,419,685 | |||||||||
| UBS Group AG, 4.875% to 2/12/27 (Switzerland)(a)(e)(f)(g)(i) |
|
2,200,000 | 2,139,540 | |||||||||
| UBS Group AG, 6.85% to 9/10/29 (Switzerland)(a)(d)(e)(f)(g)(i) |
|
3,800,000 | 3,787,435 | |||||||||
| UBS Group AG, 9.25% to 11/13/28 (Switzerland)(a)(d)(e)(f)(g)(i) |
|
5,200,000 | 5,660,408 | |||||||||
| UBS Group AG, 9.25% to 11/13/33 (Switzerland)(a)(d)(e)(f)(g)(i) |
|
6,000,000 | 6,862,212 | |||||||||
| UniCredit SpA, 6.50% to 12/3/31 (Italy)(e)(f)(g)(h) |
|
EUR | 1,600,000 | 1,772,923 | ||||||||
| U.S. Bancorp, 5.30% to 4/15/27, Series J(a)(d)(e)(f) |
|
1,535,000 | 1,521,809 | |||||||||
| Virgin Money U.K. PLC, 8.25% to 6/17/27 (United Kingdom)(e)(f)(g)(h) |
|
GBP | 1,600,000 | 2,128,803 | ||||||||
| Virgin Money U.K. PLC, 11.00% to 12/8/28 (United Kingdom)(e)(f)(g)(h) |
|
GBP | 800,000 | 1,170,559 | ||||||||
| Wells Fargo & Co., 5.95%, due 12/15/36(a)(d) |
|
2,969,000 | 3,001,891 | |||||||||
| Wells Fargo & Co., 6.85% to 9/15/29(a)(d)(e)(f) |
|
6,930,000 | 7,208,662 | |||||||||
| Wells Fargo & Co., 7.625% to 9/15/28(a)(d)(e)(f) |
|
5,080,000 | 5,439,324 | |||||||||
|
|
|
|||||||||||
| 346,927,397 | ||||||||||||
|
|
|
|||||||||||
| BROKERAGE |
1.1 | % | ||||||||||
| Goldman Sachs Capital I, 6.345%, due 2/15/34(a) |
|
2,301,000 | 2,431,198 | |||||||||
| Goldman Sachs Group, Inc., 7.50% to 2/10/29, Series W(a)(e)(f) |
|
1,321,000 | 1,388,642 | |||||||||
| Goldman Sachs Group, Inc., 7.50% to 5/10/29, Series X(a)(d)(e)(f) |
|
6,946,000 | 7,302,858 | |||||||||
|
|
|
|||||||||||
| 11,122,698 | ||||||||||||
|
|
|
|||||||||||
| CAPITAL GOODS |
0.1 | % | ||||||||||
| Air Lease Corp., 6.00% to 9/24/29 , Series D(e)(f) |
|
840,000 | 821,948 | |||||||||
|
|
|
|||||||||||
| CONSUMER STAPLE PRODUCTS |
0.8 | % | ||||||||||
| Dairy Farmers of America, Inc., 7.875% (a)(d)(e)(i) |
|
82,000 | † | 8,015,500 | ||||||||
|
|
|
|||||||||||
| ENERGY |
0.5 | % | ||||||||||
| BP Capital Markets PLC, 6.125% to 3/18/35(a)(e)(f) |
|
2,694,000 | 2,657,897 | |||||||||
| BP Capital Markets PLC, 6.45% to 12/1/33(a)(e)(f) |
|
2,070,000 | 2,117,196 | |||||||||
|
|
|
|||||||||||
| 4,775,093 | ||||||||||||
|
|
|
|||||||||||
| FINANCE |
0.3 | % | ||||||||||
| Apollo Global Management, Inc., 6.00% to 9/15/34, due 12/15/54(f) |
|
426,000 | 412,540 | |||||||||
| ARES Finance Co. III LLC, 4.125% to 6/30/26, due 6/30/51(a)(d)(f)(i) |
|
2,365,000 | 2,287,014 | |||||||||
|
|
|
|||||||||||
| 2,699,554 | ||||||||||||
|
|
|
|||||||||||
| HEALTH CARE |
0.6 | % | ||||||||||
| CVS Health Corp., 7.00% to 12/10/29, due 3/10/55(a)(d)(f) |
|
6,008,000 | 6,070,419 | |||||||||
|
|
|
|||||||||||
| INSURANCE |
6.2 | % | ||||||||||
| Allianz SE, 3.50% to 11/17/25 (Germany)(a)(d)(e)(f)(g)(i) |
|
2,200,000 | 2,128,681 | |||||||||
| ASR Nederland NV, 6.50% to 4/2/35 (Netherlands)(e)(f)(g)(h) |
|
EUR | 2,200,000 | 2,368,377 | ||||||||
| Assurant, Inc., 7.00% to 3/27/28, due 3/27/48(a)(f) |
|
2,900,000 | 2,961,628 | |||||||||
6
| Principal Amount* |
Value | |||||||||||
| Athene Holding Ltd., 6.625% to 7/15/34, due 10/15/54(a)(f) |
|
1,628,000 | $ | 1,616,182 | ||||||||
| Athora Netherlands NV, 6.75% to 5/18/31 (Netherlands)(e)(f)(g)(h) |
|
EUR | 1,000,000 | 1,107,020 | ||||||||
| AXIS Specialty Finance LLC, 4.90% to 1/15/30, due 1/15/40(a)(f) |
|
775,000 | 731,301 | |||||||||
| Corebridge Financial, Inc., 6.375% to 9/15/34, due 9/15/54(f) |
|
1,005,000 | 1,000,967 | |||||||||
| Corebridge Financial, Inc., 6.875% to 9/15/27, due 12/15/52(a)(f) |
|
2,820,000 | 2,882,611 | |||||||||
| Credit Agricole Assurances SA, 6.25% to 6/17/35 (France)(e)(f)(g)(h) |
|
EUR | 1,200,000 | 1,299,376 | ||||||||
| Enstar Finance LLC, 5.50% to 1/15/27, due 1/15/42(a)(f) |
|
2,315,000 | 2,261,325 | |||||||||
| Equitable Holdings, Inc., 6.70% to 12/28/34, due 3/28/55(f) |
|
2,030,000 | 2,019,395 | |||||||||
| Global Atlantic Fin Co., 4.70% to 7/15/26, due 10/15/51(a)(f)(i) |
|
3,582,000 | 3,452,741 | |||||||||
| Global Atlantic Fin Co., 7.95% to 7/15/29, due 10/15/54(a)(f)(i) |
|
2,455,000 | 2,553,686 | |||||||||
| Hartford Insurance Group, Inc., 6.71% (3 Month USD Term SOFR + 2.387%), due 2/12/47, Series ICON(a)(i)(l) |
|
2,200,000 | 2,030,698 | |||||||||
| ILFC E-Capital Trust I, 6.117% (3 Month USD Term SOFR + 1.812%), due 12/21/65(a)(i)(l) |
|
1,483,000 | 1,238,761 | |||||||||
| Lincoln National Corp., 9.25% to 12/1/27, Series C(a)(e)(f) |
|
1,745,000 | 1,879,524 | |||||||||
| Meiji Yasuda Life Insurance Co., 6.10% to 6/11/35, due 6/11/55 (Japan)(a)(d)(f)(i) |
|
5,800,000 | 5,794,106 | |||||||||
| MetLife Capital Trust IV, 7.875%, due 12/15/37(a)(d)(i) |
|
3,181,000 | 3,493,034 | |||||||||
| MetLife, Inc., 6.35% to 3/15/35, due 3/15/55, Series G(f) |
|
2,210,000 | 2,217,514 | |||||||||
| MetLife, Inc., 9.25%, due 4/8/38(a)(d)(i) |
|
6,365,000 | 7,526,358 | |||||||||
| Prudential Financial, Inc., 6.50% to 12/15/33, due 3/15/54(a)(d)(f) |
|
1,651,000 | 1,685,565 | |||||||||
| Prudential Financial, Inc., 6.75% to 12/1/32, due 3/1/53(a)(d)(f) |
|
1,720,000 | 1,795,988 | |||||||||
| Reinsurance Group of America, Inc., 6.65% to 6/15/35, due 9/15/55(a)(f) |
|
1,970,000 | 1,944,686 | |||||||||
| Rothesay Life PLC, 4.875% to 4/13/27, Series NC6 (United Kingdom)(e)(f)(g)(h) |
|
1,700,000 | 1,603,291 | |||||||||
| SBL Holdings, Inc., 6.50% to 11/13/26(a)(e)(f)(i) |
|
2,270,000 | 2,105,425 | |||||||||
| SBL Holdings, Inc., 7.00% to 5/13/25(a)(e)(f)(i) |
|
1,690,000 | 1,669,013 | |||||||||
| Sumitomo Life Insurance Co., 5.875% to 1/18/34 (Japan)(a)(e)(f)(i) |
|
2,200,000 | 2,187,179 | |||||||||
|
|
|
|||||||||||
| 63,554,432 | ||||||||||||
|
|
|
|||||||||||
| PIPELINES |
6.3 | % | ||||||||||
| Enbridge, Inc., 5.50% to 7/15/27, due 7/15/77, Series 2017-A (Canada)(a)(f) |
|
1,880,000 | 1,829,127 | |||||||||
| Enbridge, Inc., 5.75% to 4/15/30, due 7/15/80, Series 20-A (Canada)(a)(f) |
|
1,545,000 | 1,496,471 | |||||||||
| Enbridge, Inc., 6.00% to 1/15/27, due 1/15/77, Series 16-A (Canada)(a)(d)(f) |
|
5,089,000 | 5,029,495 | |||||||||
| Enbridge, Inc., 6.25% to 3/1/28, due 3/1/78 (Canada)(a)(d)(f) |
|
5,330,000 | 5,279,109 | |||||||||
| Enbridge, Inc., 7.20% to 3/27/34, due 6/27/54 (Canada)(a)(f) |
|
2,870,000 | 2,903,229 | |||||||||
| Enbridge, Inc., 7.375% to 10/15/27, due 1/15/83 (Canada)(a)(f) |
|
1,914,000 | 1,951,075 | |||||||||
| Enbridge, Inc., 7.625% to 10/15/32, due 1/15/83 (Canada)(a)(d)(f) |
|
4,056,000 | 4,258,451 | |||||||||
| Enbridge, Inc., 8.25% to 10/15/28, due 1/15/84, Series NC5 (Canada)(a)(f) |
|
3,390,000 | 3,578,508 | |||||||||
| Enbridge, Inc., 8.50% to 10/15/33, due 1/15/84 (Canada)(a)(d)(f) |
|
4,470,000 | 4,934,442 | |||||||||
| Energy Transfer LP, 6.50% to 11/15/26, Series H(a)(d)(e)(f) |
|
2,170,000 | 2,172,867 | |||||||||
| Energy Transfer LP, 7.125% to 5/15/30, Series G(a)(d)(e)(f) |
|
4,370,000 | 4,432,804 | |||||||||
| South Bow Canadian Infrastructure Holdings Ltd., 7.50% to 12/1/34, due 3/1/55 (Canada)(a)(f)(i) |
|
2,260,000 | 2,289,421 | |||||||||
| South Bow Canadian Infrastructure Holdings Ltd., 7.625% to 12/1/29, due 3/1/55 (Canada)(a)(f)(i) |
|
2,920,000 | 2,965,348 | |||||||||
| Transcanada Trust, 5.50% to 9/15/29, due 9/15/79 (Canada)(a)(f) |
|
8,294,000 | 8,030,267 | |||||||||
| Transcanada Trust, 5.60% to 12/7/31, due 3/7/82 (Canada)(a)(d)(f) |
|
4,617,000 | 4,320,053 | |||||||||
| Transcanada Trust, 5.875% to 8/15/26, due 8/15/76, Series 16-A (Canada)(a)(d)(f) |
|
5,187,000 | 5,163,918 | |||||||||
| Venture Global LNG, Inc., 9.00% to 9/30/29(a)(d)(e)(f)(i) |
|
3,771,000 | 3,581,616 | |||||||||
|
|
|
|||||||||||
| 64,216,201 | ||||||||||||
|
|
|
|||||||||||
| RETAIL & WHOLESALE—STAPLES |
0.2 | % | ||||||||||
| Land O’ Lakes, Inc., 7.00%(a)(e)(i) |
|
1,650,000 | 1,362,572 | |||||||||
| Land O’ Lakes, Inc., 7.25%(a)(e)(i) |
|
945,000 | 804,151 | |||||||||
|
|
|
|||||||||||
| 2,166,723 | ||||||||||||
|
|
|
|||||||||||
7
| Principal Amount* |
Value | |||||||||||
| SHOPPING CENTER |
0.6 | % | ||||||||||
| Scentre Group Trust 2, 4.75% to 6/24/26, due 9/24/80 (Australia)(f)(i) |
|
907,000 | $ | 902,990 | ||||||||
| Scentre Group Trust 2, 5.125% to 6/24/30, due 9/24/80 (Australia)(a)(f)(i) |
|
1,900,000 | 1,865,552 | |||||||||
| Unibail-Rodamco-Westfield SE, 4.875% to 7/4/30 (France)(e)(f)(h) |
|
EUR | 1,400,000 | 1,499,605 | ||||||||
| Unibail-Rodamco-Westfield SE, 7.25% to 7/3/28 (France)(e)(f)(h) |
|
EUR | 1,200,000 | 1,412,961 | ||||||||
|
|
|
|||||||||||
| 5,681,108 | ||||||||||||
|
|
|
|||||||||||
| TELECOMMUNICATION SERVICES |
0.6 | % | ||||||||||
| Bell Canada, 6.875% to 6/15/30, due 9/15/55 (Canada)(a)(f) |
|
1,980,000 | 1,988,871 | |||||||||
| Bell Canada, 7.00% to 6/15/35, due 9/15/55 (Canada)(a)(f) |
|
2,440,000 | 2,444,117 | |||||||||
| Vodafone Group PLC, 4.125% to 3/4/31, due 6/4/81 (United Kingdom)(a)(f) |
|
2,290,000 | 2,036,225 | |||||||||
|
|
|
|||||||||||
| 6,469,213 | ||||||||||||
|
|
|
|||||||||||
| UTILITIES |
7.6 | % | ||||||||||
| AES Corp., 6.95% to 4/15/30, due 7/15/55(f) |
|
1,753,000 | 1,674,874 | |||||||||
| AES Corp., 7.60% to 10/15/29, due 1/15/55(f) |
|
1,690,000 | 1,709,619 | |||||||||
| Algonquin Power & Utilities Corp., 4.75% to 1/18/27, due 1/18/82 (Canada)(a)(d)(f) |
|
5,618,000 | 5,355,797 | |||||||||
| AltaGas Ltd., 7.20% to 7/17/34, due 10/15/54 (Canada)(a)(f)(i) |
|
2,140,000 | 2,116,432 | |||||||||
| American Electric Power Co., Inc., 3.875% to 11/15/26, due 2/15/62(a)(f) |
|
2,670,000 | 2,534,095 | |||||||||
| American Electric Power Co., Inc., 6.95% to 9/15/34, due 12/15/54(a)(f) |
|
2,130,000 | 2,178,030 | |||||||||
| American Electric Power Co., Inc., 7.05% to 9/15/29, due 12/15/54(a)(f) |
|
3,464,000 | 3,528,780 | |||||||||
| Brookfield Infrastructure Finance ULC, 6.75% to 12/15/29, due 3/15/55 (Canada)(f) |
|
870,000 | 859,454 | |||||||||
| CenterPoint Energy, Inc., 7.00% to 11/15/29, due 2/15/55, Series A(f) |
|
1,615,000 | 1,643,760 | |||||||||
| CMS Energy Corp., 6.50% to 3/1/35, due 6/1/55(a)(f) |
|
2,180,000 | 2,129,815 | |||||||||
| Dominion Energy, Inc., 4.35% to 1/15/27, Series C(e)(f) |
|
3,904,000 | 3,803,845 | |||||||||
| Dominion Energy, Inc., 6.625% to 2/15/35, due 5/15/55(a)(f) |
|
1,720,000 | 1,712,217 | |||||||||
| Dominion Energy, Inc., 6.875% to 11/3/29, due 2/1/55, Series A(f) |
|
1,415,000 | 1,465,467 | |||||||||
| Edison International, 7.875% to 3/15/29, due 6/15/54(a)(f) |
|
2,341,000 | 2,258,917 | |||||||||
| Emera, Inc., 6.75% to 6/15/26, due 6/15/76, Series 16-A (Canada)(a)(d)(f) |
|
2,911,000 | 2,927,574 | |||||||||
| Entergy Corp., 7.125% to 9/1/29, due 12/1/54(a)(f) |
|
3,515,000 | 3,566,815 | |||||||||
| EUSHI Finance, Inc., 7.625% to 9/15/29, due 12/15/54(f) |
|
1,950,000 | 2,033,881 | |||||||||
| Evergy, Inc., 6.65% to 3/1/30, due 6/1/55(a)(f) |
|
2,030,000 | 2,001,815 | |||||||||
| Exelon Corp., 6.50% to 12/15/34, due 3/15/55(f) |
|
1,090,000 | 1,085,853 | |||||||||
| NextEra Energy Capital Holdings, Inc., 3.80% to 3/15/27, due 3/15/82(a)(f) |
|
1,382,000 | 1,303,698 | |||||||||
| NextEra Energy Capital Holdings, Inc., 5.65% to 5/1/29, due 5/1/79(a)(d)(f) |
|
1,547,000 | 1,518,487 | |||||||||
| NextEra Energy Capital Holdings, Inc., 6.375% to 5/15/30, due 8/15/55(a)(f) |
|
2,205,000 | 2,212,887 | |||||||||
| NextEra Energy Capital Holdings, Inc., 6.50% to 5/15/35, due 8/15/55(a)(f) |
|
3,310,000 | 3,382,615 | |||||||||
| NextEra Energy Capital Holdings, Inc., 6.70% to 6/1/29, due 9/1/54(a)(d)(f) |
|
2,953,000 | 2,997,053 | |||||||||
| NextEra Energy Capital Holdings, Inc., 6.75% to 3/15/34, due 6/15/54(a)(d)(f) |
|
5,727,000 | 5,860,136 | |||||||||
| NiSource, Inc., 6.375% to 12/31/34, due 3/31/55(a)(f) |
|
2,210,000 | 2,189,297 | |||||||||
| NiSource, Inc., 6.95% to 8/30/29, due 11/30/54(f) |
|
1,325,000 | 1,346,712 | |||||||||
| Sempra, 4.125% to 1/1/27, due 4/1/52(a)(f) |
|
3,360,000 | 3,165,687 | |||||||||
| Sempra, 6.40% to 7/1/34, due 10/1/54(a)(d)(f) |
|
3,983,000 | 3,787,799 | |||||||||
| Sempra, 6.875% to 7/1/29, due 10/1/54(a)(d)(f) |
|
3,723,000 | 3,695,767 | |||||||||
| Southern Co., 3.75% to 6/15/26, due 9/15/51, Series 21-A(f) |
|
1,687,000 | 1,642,377 | |||||||||
|
|
|
|||||||||||
| 77,689,555 | ||||||||||||
|
|
|
|||||||||||
| TOTAL PREFERRED
SECURITIES—OVER-THE-COUNTER |
|
600,209,841 | ||||||||||
|
|
|
|||||||||||
8
| Principal Amount* |
Value | |||||||||||
| CORPORATE BONDS—INSURANCE |
0.1 | % | ||||||||||
| SBL Holdings, Inc., 5.00%, due 2/18/31(i) |
800,000 | $ | 719,035 | |||||||||
|
|
|
|||||||||||
| TOTAL CORPORATE BONDS |
719,035 | |||||||||||
|
|
|
|||||||||||
| Ownership%†† | ||||||||||||
| PRIVATE REAL ESTATE—OFFICE |
1.2 | % | ||||||||||
| Legacy Gateway JV LLC, Plano, TX(m) |
33.6 | % | 11,709,116 | |||||||||
|
|
|
|||||||||||
| TOTAL PRIVATE REAL ESTATE |
11,709,116 | |||||||||||
|
|
|
|||||||||||
| Shares | ||||||||||||
| SHORT-TERM INVESTMENTS |
1.7 | % | ||||||||||
| MONEY MARKET FUNDS |
||||||||||||
| State Street Institutional Treasury Plus Money Market Fund, Premier Class, 4.28%(n) |
|
8,908,336 | 8,908,336 | |||||||||
| State Street Institutional U.S. Government Money Market Fund, Premier Class, 4.29%(n) |
|
8,273,823 | 8,273,823 | |||||||||
|
|
|
|||||||||||
| TOTAL SHORT-TERM INVESTMENTS |
|
17,182,159 | ||||||||||
|
|
|
|||||||||||
| PURCHASED OPTION CONTRACTS |
0.0 | % | 30,360 | |||||||||
|
|
|
|||||||||||
| TOTAL INVESTMENTS IN SECURITIES |
143.2 | % | 1,458,534,204 | |||||||||
| WRITTEN OPTION CONTRACTS |
(0.1 | ) | (599,816 | ) | ||||||||
| LIABILITIES IN EXCESS OF OTHER ASSETS |
(43.1 | ) | (438,820,521 | ) | ||||||||
| SERIES A CUMULATIVE PREFERRED STOCK, AT LIQUIDATION VALUE |
(0.0 | ) | (125,000 | ) | ||||||||
|
|
|
|
|
|||||||||
| NET ASSETS |
100.0 | % | $ | 1,018,988,867 | ||||||||
|
|
|
|
|
|||||||||
Exchange-Traded Option Contracts
| Purchased Options | ||||||||||||||||||||||||
| Description | Exercise Price |
Expiration Date |
Number of Contracts |
Notional Amount(o) |
Premiums Paid |
Value | ||||||||||||||||||
| Put — Public Storage |
$ | 280.00 | 5/16/25 | 66 | $ | 1,975,314 | $ | 37,108 | $ | 30,360 | ||||||||||||||
9
| Written Options | ||||||||||||||||||||||||||
| Description | Exercise Price |
Expiration Date |
Number of Contracts |
Notional Amount(o) |
Premiums Paid |
Value | ||||||||||||||||||||
| Call — American Tower Corp. |
$ | 220.00 | 4/17/25 | (92 | ) | $ | (2,001,920 | ) | $ | (30,609 | ) | $ | (34,040 | ) | ||||||||||||
| Call — Welltower, Inc. |
150.00 | 4/17/25 | (139 | ) | (2,129,619 | ) | (77,640 | ) | (80,620 | ) | ||||||||||||||||
| Call — VICI Properties, Inc. |
32.50 | 5/16/25 | (603 | ) | (1,966,986 | ) | (35,318 | ) | (66,330 | ) | ||||||||||||||||
| Put — AvalonBay Communities, Inc. |
200.00 | 4/17/25 | (87 | ) | (1,867,194 | ) | (18,058 | ) | (5,094 | ) | ||||||||||||||||
| Put — BXP, Inc. |
60.00 | 4/17/25 | (289 | ) | (1,941,791 | ) | (27,042 | ) | (8,092 | ) | ||||||||||||||||
| Put — Equinix, Inc. |
840.00 | 4/17/25 | (21 | ) | (1,712,235 | ) | (25,568 | ) | (68,670 | ) | ||||||||||||||||
| Put — Extra Space Storage, Inc. |
140.00 | 4/17/25 | (126 | ) | (1,870,974 | ) | (20,483 | ) | (10,710 | ) | ||||||||||||||||
| Put — Host Hotels & Resorts, Inc. |
16.00 | 4/17/25 | (1,215 | ) | (1,726,515 | ) | (168,360 | ) | (236,925 | ) | ||||||||||||||||
| Put — Kilroy Realty Corp. |
30.00 | 4/17/25 | (566 | ) | (1,854,216 | ) | (15,390 | ) | (14,150 | ) | ||||||||||||||||
| Put — Kimco Realty Corp. |
20.00 | 4/17/25 | (921 | ) | (1,956,204 | ) | (21,709 | ) | (13,815 | ) | ||||||||||||||||
| Put — Americold Realty Trust, Inc. |
20.00 | 5/16/25 | (893 | ) | (1,916,378 | ) | (40,114 | ) | (27,710 | ) | ||||||||||||||||
| Put — Public Storage |
270.00 | 5/16/25 | (132 | ) | (3,950,628 | ) | (41,434 | ) | (33,660 | ) | ||||||||||||||||
| (5,084 | ) | $ | (24,894,660 | ) | $ | (521,725 | ) | $ | (599,816 | ) | ||||||||||||||||
Centrally Cleared Interest Rate Swap Contracts
| Notional Amount |
Fixed Rate Payable |
Fixed Payment Frequency |
Floating Rate Receivable (resets daily) |
Floating Payment Frequency |
Maturity Date | Value | Upfront Payments (Receipts) |
Unrealized Appreciation (Depreciation) |
||||||||||||||||||||
| $ 105,000,000 | 0.670% | Monthly | 4.524%(p) | Monthly | 9/15/25 | $ | 1,933,751 | $ | (4,511 | ) | $ | 1,938,262 | ||||||||||||||||
| 87,500,000 | 1.240% | Monthly | 4.524%(p) | Monthly | 2/3/26 | 2,323,150 | (1,040 | ) | 2,324,190 | |||||||||||||||||||
| 65,000,000 | 0.762% | Monthly | 4.524%(p) | Monthly | 9/15/26 | 3,035,486 | (6,771 | ) | 3,042,257 | |||||||||||||||||||
| 105,000,000 | 1.237% | Monthly | 4.524%(p) | Monthly | 9/15/27 | 6,468,207 | (13,871 | ) | 6,482,078 | |||||||||||||||||||
| 50,000,000 | 3.655% | Monthly | USD-SOFR-OIS(q) | Monthly | 9/15/28 | (201,991 | ) | — | (201,991 | ) | ||||||||||||||||||
| 50,000,000 | 3.588% | Monthly | USD-SOFR-OIS(q) | Monthly | 9/15/28 | (106,606 | ) | — | (106,606 | ) | ||||||||||||||||||
| $ | 13,451,997 | $ | (26,193 | ) | $ | 13,478,190 | ||||||||||||||||||||||
Forward Foreign Currency Exchange Contracts
| Counterparty | Contracts to Deliver |
In Exchange For |
Settlement Date |
Unrealized Appreciation (Depreciation) |
||||||||||||||
| Brown Brothers Harriman |
EUR | 2,200,000 | USD | 2,378,103 | 4/28/25 | $ | (4,087 | ) | ||||||||||
| Brown Brothers Harriman |
EUR | 1,392,160 | USD | 1,504,864 | 4/28/25 | (2,587 | ) | |||||||||||
| Brown Brothers Harriman |
EUR | 35,656,775 | USD | 38,634,686 | 4/28/25 | 25,039 | ||||||||||||
| Brown Brothers Harriman |
GBP | 12,712,321 | USD | 16,454,637 | 4/28/25 | 34,470 | ||||||||||||
| Brown Brothers Harriman |
USD | 1,373,596 | EUR | 1,275,308 | 4/28/25 | 7,325 | ||||||||||||
| $ | 60,160 | |||||||||||||||||
10
Glossary of Portfolio Abbreviations
| EUR | Euro Currency | |
| GBP | British Pound | |
| ICON | Income Capital Obligation Note | |
| OIS | Overnight Indexed Swap | |
| SOFR | Secured Overnight Financing Rate | |
| USD | United States Dollar |
Note: Percentages indicated are based on the net assets of the Fund.
| * | Amount denominated in U.S. dollars unless otherwise indicated. |
| † | Represents shares. |
| †† | Legacy Gateway JV LLC, owns a Class A office building located at 6860 N. Dallas Parkway, Plano, Texas 75024. |
| (a) | All or a portion of the security is pledged as collateral in connection with the Fund’s revolving credit agreement. $943,170,481 in aggregate has been pledged as collateral. |
| (b) | All or a portion of the security is pledged in connection with exchange-traded written option contracts. $16,733,355 in aggregate has been pledged as collateral. |
| (c) | Restricted security. Aggregate holdings equal 0.4% of the net assets of the Fund. This security was acquired on August 3, 2020, at a cost of $3,755,469. |
| (d) | A portion of the security has been rehypothecated in connection with the Fund’s revolving credit agreement. $356,591,094 in aggregate has been rehypothecated. |
| (e) | Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer. |
| (f) |
Security converts to floating rate after the indicated fixed-rate coupon period. |
| (g) | Contingent Capital security (CoCo). CoCos are debt or preferred securities with loss absorption characteristics built into the terms of the security for the benefit of the issuer. Aggregate holdings amounted to $189,399,438 which represents 18.6% of the net assets of the Fund (12.9% of the managed assets of the Fund). |
| (h) | Securities exempt from registration under Regulation S of the Securities Act of 1933. These securities are subject to resale restrictions. Aggregate holdings amounted to $74,552,735 which represents 7.3% of the net assets of the Fund, of which 0.0% are illiquid. |
| (i) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may only be resold to qualified institutional buyers. Aggregate holdings amounted to $133,293,901 which represents 13.1% of the net assets of the Fund, of which 1.1% are illiquid. |
| (j) | Non-income producing security. |
| (k) | Security is in default. |
| (l) | Variable rate. Rate shown is in effect at March 31, 2025. |
| (m) |
Security value is determined based on significant unobservable inputs (Level 3). |
| (n) | Rate quoted represents the annualized seven-day yield. |
| (o) | Represents the number of contracts multiplied by notional contract size multiplied by the underlying price. |
| (p) | Based on USD-SOFR-OIS. Represents rates in effect at March 31, 2025. |
| (q) | Represents a forward-starting interest rate swap contract with interest receipts and payments commencing on September 15, 2025 (effective date). |
11
COHEN & STEERS REIT AND PREFERRED AND INCOME FUND, INC.
NOTES TO CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited)
Note 1. Portfolio Valuation
Investments in securities that are listed on the New York Stock Exchange (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 ask prices on such day or, if no ask price is available, at the bid price. Centrally cleared interest rate swaps are valued at the price determined by the relevant exchange or clearinghouse. Forward foreign currency exchange contracts are valued daily at the prevailing forward exchange rate. Exchange-traded options are valued at their last sale price as of the close of options trading on applicable exchanges on the valuation date. In the absence of a last sale price on such day, options are valued based upon prices provided by a third-party pricing service. Over-the-counter (OTC) options and total return swaps are valued based upon prices provided by a third-party pricing service or counterparty.
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 reflected at the close of the exchange representing the principal market for such securities on the business day as of which such value is being determined. If after the close of a foreign market, but prior to the close of business on the day the securities are being valued, market conditions change significantly, certain non-U.S. equity holdings may be fair valued pursuant to procedures established by the Board of Directors.
Readily marketable securities traded in the OTC market, including listed securities whose primary market is believed by Cohen & Steers Capital Management, Inc. (the investment manager) to be OTC, are valued on the basis of prices provided by a third-party pricing service or third-party broker-dealers when such prices are believed by the investment manager, pursuant to delegation by the Board of Directors, to reflect the fair value of such securities.
Fixed-income securities are valued on the basis of prices provided by a third-party pricing service or third-party brokerdealers when such prices are believed by the investment manager, pursuant to delegation by the Board of Directors, to reflect the fair value of such securities. The pricing services or broker-dealers use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services or broker-dealers may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services or broker-dealers also utilize proprietary valuation models which may consider market transactions in comparable securities and the various relationships between securities in determining fair value and/or characteristics such as benchmark yield curves, option-adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features which are then used to calculate the fair values.
Short-term debt securities with a maturity date of 60 days or less are valued at amortized cost, which approximates fair value. Investments in open-end mutual funds are valued at net asset value (NAV).
The Fund utilizes an independent valuation services firm (the Independent Valuation Advisor) to assist the investment manager in the determination of the Fund’s fair value of private real estate investments held by the Cohen & Steers RNP Trust (the REIT Subsidiary). Limited scope appraisals are prepared on a monthly basis and typically include a limited comparable sales and a full discounted cash flow analysis. Annually, a full scope, detailed appraisal report is completed which typically includes market analysis, cost approach, sales comparison approach and an income approach containing a discounted cash flow analysis. The full scope report is prepared by a third-party appraisal firm. The investment manager, including through communication with the Independent Valuation Advisor, monitors for material events that the investment manager believes may be expected to have a material impact on the most recent estimated fair values of such private real estate investments. However, rapidly changing market conditions or material events may not be immediately reflected in the Fund’s or REIT Subsidiary’s daily NAV. The investment manager, in conjunction with the Independent Valuation Advisor, values the private real estate investments using the valuation methodology it deems most appropriate and consistent with industry best practices and market conditions. The investment manager expects the primary methodology used to value private real estate investments will be the income approach. Consistent with industry practices, the income approach incorporates actual contractual lease income, professional judgments regarding comparable rental and operating expense data, the capitalization or discount rate and projections of future rent and expenses based on appropriate market evidence, and other subjective factors. Other methodologies that may also be used to value properties include, among other approaches, sales comparisons and cost approaches. Private real estate appraisals are reported on a free and clear basis (i.e. any property-level indebtedness that may be in place is not incorporated into the valuation). Property level debt is valued separately in accordance with GAAP.
The Board of Directors has designated the investment manager as the Fund’s “Valuation Designee” under Rule 2a-5 under the Investment Company Act of 1940. As Valuation Designee, the investment manager is authorized to make fair valuation determinations, subject to the oversight of the Board of Directors. The investment manager has established a valuation committee (Valuation Committee) to administer, implement and oversee the fair valuation process according to the policies and procedures approved annually by the Board of Directors. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
COHEN & STEERS REIT AND PREFERRED AND INCOME FUND, INC.
NOTES TO CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
Securities for which market prices are unavailable, or securities for which the investment manager determines that the bid and/or ask price or a counterparty valuation does not reflect market value, will be valued at fair value, as determined in good faith by the Valuation Committee, pursuant to procedures approved by the Fund’s Board of 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, but are not limited to, recent transactions in comparable securities, information relating to the specific security and developments in the markets.
For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities are categorized as Level 2 or 3 in the hierarchy, depending on the relative significance of the valuation inputs. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security’s underlying assets and liabilities.
The Fund’s use of fair value pricing may cause the NAV of Fund shares to differ from the NAV that would be calculated using market quotations. Fair value pricing involves subjective judgments and it is possible that the fair value determined for a security may be materially different than the value that could be realized upon the sale of that security.
Fair value is defined as the price that the Fund would expect to receive upon the sale of an investment or expect to pay to transfer a liability in an orderly transaction with an independent buyer in the principal market or, in the absence of a principal market, the most advantageous market for the investment or liability. The hierarchy of inputs that are used in determining the fair value of the Fund’s investments is summarized below.
| • | Level 1 — quoted prices in active markets for identical investments |
| • | Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.) |
| • | Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing investments may or may not be an indication of the risk associated with those investments. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy.
COHEN & STEERS REIT AND PREFERRED AND INCOME FUND, INC.
NOTES TO CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
The following is a summary of the inputs used as of March 31, 2025 in valuing the Fund’s investments carried at value:
| Quoted Prices in Active Markets for Identical Investments (Level 1) |
Other Significant Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total | |||||||||||||
| Common Stock |
$ | 713,139,848 | $ | — | $ | — | $ | 713,139,848 | ||||||||
| Preferred Securities—Exchange-Traded |
115,543,845 | — | — | 115,543,845 | ||||||||||||
| Preferred Securities—Over-the-Counter |
— | 600,209,841 | — | 600,209,841 | ||||||||||||
| Corporate Bonds |
— | 719,035 | — | 719,035 | ||||||||||||
| Private Real Estate—Office |
— | — | 11,709,116 | (a) | 11,709,116 | |||||||||||
| Short-Term Investments |
— | 17,182,159 | — | 17,182,159 | ||||||||||||
| Purchased Option Contracts |
30,360 | — | — | 30,360 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Investments in Securities(b) |
$ | 828,714,053 | $ | 618,111,035 | $ | 11,709,116 | $ | 1,458,534,204 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Forward Foreign Currency Exchange Contracts |
$ | — | $ | 66,834 | $ | — | $ | 66,834 | ||||||||
| Interest Rate Swap Contracts |
— | 13,786,787 | — | 13,786,787 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Derivative Assets(b) |
$ | — | $ | 13,853,621 | $ | — | $ | 13,853,621 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Forward Foreign Currency Exchange Contracts |
$ | — | $ | (6,674 | ) | $ | — | $ | (6,674 | ) | ||||||
| Interest Rate Swap Contracts |
— | (308,597 | ) | — | (308,597 | ) | ||||||||||
| Written Option Contracts |
(567,012 | ) | (32,804 | ) | — | (599,816 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Derivative Liabilities(b) |
$ | (567,012 | ) | $ | (348,075 | ) | $ | — | $ | (915,087 | ) | |||||
|
|
|
|
|
|
|
|
|
|||||||||
| (a) | Private Real Estate, where observable inputs are limited, has been fair valued by the Valuation Committee, pursuant to the Fund’s fair value procedures and classified as Level 3 security. See Note 1-Portfolio Valuation. |
| (b) | Portfolio holdings are disclosed individually on the Consolidated Schedule of Investments. |
The following is a reconciliation of investments for which significant unobservable inputs (Level 3) were used in determining fair value:
| Balance as of December 31, 2024 |
Change in unrealized appreciation (depreciation) |
Balance as of March 31, 2025 |
||||||||||
| Private Real Estate—Office |
$ | 12,406,944 | $ | (697,828 | ) | $ | 11,709,116 | |||||
The change in unrealized appreciation (depreciation) attributable to securities owned on March 31, 2025 which were valued using significant unobservable inputs (Level 3) amounted to $(697,828).
The following table summarizes the quantitative inputs and assumptions used for investments categorized in Level 3 of the fair value hierarchy.
| Fair Value at March 31, 2025 |
Valuation Technique |
Unobservable Inputs |
Amount | Valuation Impact from an Increase in Input(a) |
||||||||||||
| Private Real Estate—Office |
$ | 11,709,116 | Discounted Cash Flow |
Terminal Capitalization Rate Discount Rate |
|
7.00 8.25 |
% % |
|
Decrease Decrease |
| ||||||
| (a) | Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may result in a materially higher or lower fair value measurement. |
COHEN & STEERS REIT AND PREFERRED AND INCOME FUND, INC.
NOTES TO CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
Note 2. Derivative Investments
Forward Foreign Currency Exchange Contracts: The Fund enters into forward foreign currency exchange contracts to hedge the currency exposure associated with certain of its non-U.S. dollar-denominated securities. A forward foreign currency exchange contract is a commitment between two parties to purchase or sell foreign currency at a set price on a future date. The market value of a forward foreign currency exchange contract fluctuates with changes in foreign currency exchange rates. These contracts are marked to market daily and the change in value is recorded by the Fund as unrealized appreciation and/or depreciation on forward foreign currency exchange contracts. Realized gains or losses equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed are included in net realized gain or loss on forward foreign currency exchange contracts. For federal income tax purposes, the Fund has made an election to treat gains and losses from forward foreign currency exchange contracts as capital gains and losses.
Forward foreign currency exchange contracts involve elements of market risk in excess of the amounts reflected on the Consolidated Schedule of Investments. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the contract. Risks may also arise upon entering these contracts from the potential inability of the counterparties to meet the terms of their contracts. In connection with these contracts, securities may be identified as collateral in accordance with the terms of the respective contracts.
Option Contracts: The Fund may purchase and write exchange-listed and OTC put or call options on securities, stock indices and other financial instruments for hedging purposes, to enhance portfolio returns and/or reduce overall volatility.
When the Fund writes (sells) an option, an amount equal to the premium received by the Fund is recorded as a liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. When an option expires, the Fund realizes a gain on the option to the extent of the premium received. Premiums received from writing options which are exercised or closed are added to or offset against the proceeds or amount paid on the transaction to determine the realized gain or loss. If a put option on a security is exercised, the premium reduces the cost basis of the security purchased by the Fund. If a call option is exercised, the premium is added to the proceeds of the security sold to determine the realized gain or loss. The Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the underlying index or security. Other risks include the possibility of an illiquid options market or the inability of the counterparties to fulfill their obligations under the contracts.
Put and call options purchased are accounted for in the same manner as portfolio securities. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain or loss when the underlying transaction is executed. The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract.
Centrally Cleared Interest Rate Swap Contracts: The Fund uses interest rate swaps in connection with borrowing under its credit agreement. The interest rate swaps are intended to reduce interest rate risk by countering the effect that an increase in short-term interest rates could have on the performance of the Fund’s shares as a result of the floating rate structure of interest owed pursuant to the credit agreement. When entering into interest rate swaps, the Fund agrees to pay the other party to the interest rate swap (which is known as the counterparty) a fixed rate payment in exchange for the counterparty’s agreement to pay the Fund a variable rate payment that was intended to approximate the Fund’s variable rate payment obligation on the credit agreement. The payment obligation is based on the notional amount of the swap. Depending on the state of interest rates in general, the use of interest rate swaps could enhance or harm the overall performance of the Fund. Swaps are marked-to-market daily and changes in the value are recorded as unrealized appreciation (depreciation).
Immediately following execution of the swap agreement, the swap agreement is novated to a central counterparty (the CCP) and the Fund’s counterparty on the swap agreement becomes the CCP. The Fund is required to interface with the CCP through a broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated on the Consolidated Schedule of Investments and cash deposited is recorded as cash collateral pledged for interest rate swap contracts. The daily change in valuation of centrally
COHEN & STEERS REIT AND PREFERRED AND INCOME FUND, INC.
NOTES TO CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited) (Continued)
cleared swaps is recorded as a receivable or payable for variation margin on interest rate swap contracts. Any upfront payments paid or received upon entering into a swap agreement would be recorded as assets or liabilities, respectively, amortized or accreted over the life of the swap and recorded as realized gain (loss). Payments received from or paid to the counterparty during the term of the swap agreement, or at termination, are recorded as realized gain (loss).
Swap agreements involve, to varying degrees, elements of market and counterparty risk, and exposure to loss in excess of the related amounts reflected on the Consolidated Schedule of Investments. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements and that there may be unfavorable changes in interest rates.