Cohen & Steers Real Estate Opportunities Fund (RLTY)

Overview

The Cohen & Steers Real Estate Opportunities & Income Fund is a versatile open-end balanced mutual fund that has been introduced by Cohen & Steers Capital Management, Inc., focusing on tapping into the lucrative realms of the public equity and fixed income markets on a global scale. With a strategic aim towards diversification and capital growth, the fund meticulously selects its investments across a broad spectrum of sectors including financials, diversified financials, and more specifically, mortgage real estate investment trusts (REITs) and the broader real estate industry. Through a combination of direct investments and the strategic use of derivatives, such as options, it maneuvers to optimize its equity portfolio. Furthermore, the fund adopts a comprehensive approach towards its fixed income segment by venturing into securities rated below investment grade, all the while upholding a rigorous fundamental analysis and bottom-up securities picking methodology. With its inception on February 23, 2022, and being domiciled in the United States, the Cohen & Steers Real Estate Opportunities & Income Fund aligns proprietary research with a well-defined portfolio construction strategy to offer promising opportunities to its investors.

Products and Services

• Equity Investments

  The fund takes an proactive stance in the equity markets by principally investing in stocks belonging to companies operating within the financial, diversified financials, mortgage REITs, and real estate sectors. It broadens its investment scope through direct investments as well as the adept use of derivatives, focusing on both growth and value stocks across a varied range of market capitalizations. This segment of the fund's portfolio is crafted to leverage the potential growth and income generation opportunities prevalent in the real estate and financial sectors globally.

• Derivatives Trading

  To enhance its portfolio and manage risks, the fund employs derivatives, particularly options, as a strategic tool. This approach facilitates the fund in navigating the equity market efficiently, allowing it to hedge against possible downturns, generate income, or speculate on the future movements of securities and indexes related to the real estate and financial sectors without directly owning the underlying assets.

• Fixed Income Securities

  In its pursuit of income and portfolio diversification, the fund incorporates fixed income securities that are rated below investment grade. This segment is dedicated to tapping into the potential high-yield opportunities that these securities offer, compensating for the higher risk with potentially greater returns. The selection of fixed income securities is guided by a thorough fundamental analysis and a meticulous securities picking process, focusing on uncovering undervalued securities with promising prospects.

• Proprietary Research and Analysis

  At its core, the Cohen & Steers Real Estate Opportunities & Income Fund supports its investment decisions on proprietary research. This in-house expertise underpins the fund’s strategy for both its equity and fixed income portions, employing a bottom-up approach to selecting securities. Through this disciplined method of analysis, the fund targets to construct a portfolio that is not only resilient but also positioned to capitalize on market opportunities as they arise.