# Cohen & Steers Tax-Advantaged Preferred Securities & Income Fund

Cohen & Steers Tax-Advantaged Preferred Securities & Income Fund is an other based in New York, United States.

## Overview

- **Organization type:** other
- **Headquarters:** New York, United States
- **Region:** North America
- **Address:** New York, NY, United States
- **Assets under management:** Undisclosed
- **Website:** cohenandsteers.com

## Regulatory record

- **Reports private funds:** No

## About

The fund operates as one of several preferred-securities vehicles within Cohen & Steers, a publicly traded asset manager (NYSE: CNS) founded in 1986 and synonymous with real-asset and income-oriented investing. While the parent firm built its reputation on listed real estate, the preferred securities practice has grown into a standalone pillar led by William Scapell since 2005. The wealth-origin distinction here is institutional, not familial — Cohen & Steers manages capital for pension funds, endowments, and retail investors globally, not a single family's fortune. The portfolio construction leans heavily on the $1 trillion-plus institutional preferred market. Holdings typically span fixed-to-floating rate preferreds, trust preferred securities, and contingent convertible instruments from issuers like Bank of America, Morgan Stanley, NextEra Energy, and AT&T. The fund employs modest leverage, historically in the 25–35% range, to amplify the yield on these mostly investment-grade instruments. Its mandate is specific: generate current income treated as qualified dividend income for US taxpayers, which drives a bias toward domestic issuers and securities with explicit tax opinions. The strategy eschews common equity and focuses exclusively on the capital structure slice where yield and tax efficiency intersect. As a registered closed-end fund, the vehicle has a fixed share count and can trade at premiums or discounts to net asset value — a structural feature that attracts activist investors and creates periodic arbitrage opportunities. The broader Cohen & Steers platform has expanded preferred assets beyond this single ticker; the firm launched the Cohen & Steers Preferred Securities and Income Fund (CPXIX) as an open-end interval fund and manages separate accounts for institutional clients pursuing similar exposures. The parent firm reported approximately $80 billion in total AUM in early 2025 across real estate, infrastructure, and preferred strategies (per the firm's earnings disclosures, 2025). The fund's structural differentiator is its tax wrapper. Unlike a conventional bond fund that distributes ordinary interest taxed at marginal income rates, this vehicle prioritizes qualified dividend income, contingent interest, and return-of-capital distributions where legally permissible. That tax architecture, combined with the closed-end structure that allows the portfolio managers to hold less-liquid institutional preferreds without facing daily redemption pressure, creates an investment profile unavailable to standard open-end mutual funds. In an era of elevated interest-rate sensitivity among bank and insurance hybrid securities, the fund's concentrated sector bets and leverage posture make it a high-conviction instrument, not a diversified fixed-income substitute.

## Sectors

- Financials
- Private Credit
- Real Estate
- Insurance
- Energy Transition & Renewables

## People

- William Scapell — Head of Fixed Income & Preferred Securities
- Elaine Zaharis-Nikas — Senior Portfolio Manager
- Joseph Harvey — CEO, Cohen & Steers

## Questions

### Who runs day-to-day portfolio decisions for the fund?

William Scapell leads the preferred securities team at Cohen & Steers and has managed the fund since its launch in 2003. He is supported by Elaine Zaharis-Nikas and a dedicated team of credit analysts who cover the institutional preferred market globally. Scapell joined Cohen & Steers in 1988, giving him tenure that spans multiple rate cycles and credit events across the preferred universe.

### Which asset classes and sectors dominate the portfolio?

The fund concentrates in fixed-to-floating and fixed-rate preferred securities issued by global banks, regional US banks, insurance companies, REITs, and electric utilities. Since the 2008 financial crisis and subsequent Basel III rules, large-cap bank preferreds have comprised a significant weighting, given their improved regulatory capital standing and relatively liquid secondary markets. The team also allocates to contingent convertible securities and $1,000-par institutional preferreds not available to most retail investors.

### Which sectors does the fund explicitly avoid?

The mandate explicitly avoids common equity and most corporate debt that pays ordinary interest. While the firm's REIT practice invests heavily in common equity REITs, this fund focuses on the preferred and hybrid layer of the capital structure. Sectors that rarely issue qualified-dividend-paying preferreds — such as technology companies or private equity-backed firms — are mostly absent from the portfolio.

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Last updated: 2026-06-03T20:00:00.000Z

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