Cohen & Steers Limited Duration Preferred and Income Fund, Inc. (XLDPX)

Overview

The Cohen & Steers Limited Duration Preferred and Income Fund, Inc. is a distinguished closed-ended fixed income fund, initiated by the reputable Cohen & Steers, Inc. Managed by Cohen & Steers Capital Management, Inc., this financial vehicle showcases an international investment footprint, engaging primarily in the fixed income markets. Established on May 1, 2012, and based in the United States, the fund employs a sophisticated investment strategy that not only focuses on the issuers' creditworthiness but also pays significant attention to the prevailing market factors. By leveraging derivatives such as interest rate swaps, the fund embarks on a diversified investment journey, prioritizing companies entrenched within the financial sectors including banks, diversified financials, real estate, and insurance industries.

Products and Services

• Floating-Rate and Fixed-to-Floating Rate Preferred Securities

  This segment of the fund's investment focuses on preferred securities that have variable interest rates. These securities are attractive to investors looking for income that adjusts with market conditions, offering a potential hedge against inflation.

• Preferred Securities

  Investing in preferred securities provides the fund with dividends that are generally higher than what common stocks offer. These investments rank above common stock in terms of claim on assets and earnings but below bonds, making them a hybrid investment option with moderate risk.

• Traditional Preferred Securities

  These are the more conventional forms of preferred stocks, providing fixed dividend payments to investors. By investing in these securities, the fund aims to generate steady income for its shareholders, complementing the more dynamic floating-rate investments.

• Hybrid-Preferred Securities

  Hybrid-preferred securities combine features of both equity and debt instruments, often with convertible or exchangeable options. This flexibility allows the fund to capitalize on potential equity upsides while enjoying the income stability of preferred shares.

• Debt Securities

  The inclusion of debt securities in the fund’s portfolio adds an element of diversification, potentially reducing overall risk. These investments can provide regular interest income, contributing to the fund's goals of income generation and capital preservation.

• Convertible Securities

  Convertible securities offer the fund the option to convert bonds or preferred stocks into a predetermined amount of the issuer's common stock. This feature provides the potential for capital appreciation, alongside income generation, aligning with the fund’s strategic investment approach.