Cohen & Steers Short Duration Preferred and Income Active ETF (CSSD)

Overview

CSSD is an actively managed fund dedicated to generating high current income alongside capital growth. The fund primarily focuses on short-duration preferred and income-producing securities from companies across the globe. This includes a variety of financial instruments such as traditional, hybrid, and floating-rate preferred securities, as well as convertible and contingent capital securities. The fund is designed to maintain a diversified investment strategy, aiming to allocate at least 50% of its net assets in investment-grade securities and up to 50% in high-yield securities. This balance allows investors to benefit from the stability associated with investment-grade securities while also tapping into the potential higher returns offered by high-yield options. Furthermore, the fund employs a thorough evaluation of issuer fundamentals, including creditworthiness, and takes into account prevailing market conditions to construct its portfolio. Environmental, Social, and Governance (ESG) factors may also play a role in the decision-making process, reflecting a commitment to responsible investing. Notably, the fund has specific allocation targets, intending to invest at least 25% of its net assets within the financials sector, up to 15% in securities from emerging market firms, and maintaining an aggregate of at least 40% in foreign securities. To mitigate risks associated with currency fluctuations, the fund typically plans to hedge its currency exposure back to the USD.

Products and Services

• Short-Duration Preferred Securities

  These securities provide investors with higher income potential while mitigating interest rate risks due to their shorter duration. They are primarily sourced from high-quality issuers and are designed to offer attractive cash flows.

• Income-Producing Securities

  This category encompasses a range of financial instruments that generate regular income, catering to investors looking for predictable cash flow alongside potential capital appreciation.

• Hybrid and Floating-Rate Preferred Securities

  These securities combine features from both traditional bonds and stocks, often providing investors with the advantage of variable income tied to interest rate fluctuations. They appeal to those seeking adaptability in income generation.

• Convertible Securities

  Convertible securities allow investors to switch their holdings into equity, providing upside potential while still receiving fixed income until conversion. This caters to those interested in equity participation with relative safety.

• Contingent Capital Securities

  These are designed to absorb losses in times of financial stress, providing a buffer for financial institutions while offering potentially higher yields. They are suited for investors who are comfortable with added risk for increased returns.

• Investment-Grade Securities

  Investing at least 50% of net assets in these securities ensures a degree of stability and credit quality. They are typically issued by financially sound entities and are a safer investment option.

• High-Yield Securities

  With up to 50% of net assets in high-yield securities, the fund aims to capitalize on the greater income potential these investments provide, making them enticing for risk-tolerant investors.

• Emerging Market Investments

  The fund can allocate up to 15% of its net assets in securities issued by emerging market firms, offering exposure to rapidly growing economies and sectors that may present substantial growth opportunities.

• Foreign Securities

  With a commitment to maintain at least 40% in foreign securities, the fund enhances diversification and seeks opportunities in global markets beyond the reaches of domestic investments.

• Currency Hedging

  To protect against currency risk, the fund typically employs hedging strategies aimed at stabilizing returns when investing in foreign securities, thereby mitigating the impact of currency fluctuations on investors’ investments.