UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number:    811-22455                                 

Cohen & Steers Select Preferred and Income Fund, Inc.

 

(Exact name of registrant as specified in charter)

280 Park Avenue, New York, NY 10017

 

(Address of principal executive offices) (Zip code)

Dana A. DeVivo

Cohen & Steers Capital Management, Inc.

280 Park Avenue

New York, New York 10017

 

(Name and address of agent for service)

Registrant’s telephone number, including area code:    (212) 832-3232                                

Date of fiscal year end:    December 31                                

Date of reporting period:    June 30, 2023                                

 

 

 


Item 1. Reports to Stockholders.

 

 

 


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

To Our Shareholders:

We would like to share with you our report for the six months ended June 30, 2023. The total returns for Cohen & Steers Select Preferred and Income Fund, Inc. (the Fund) and its comparative benchmarks were:

 

    Six Months Ended
June 30, 2023
 

Cohen & Steers Select Preferred and Income Fund at Net Asset Value(a)

    –2.13

Cohen & Steers Select Preferred and Income Fund at Market Value(a)

    1.22

ICE BofA Fixed Rate Preferred Securities Index(b)

    4.60

Blended Benchmark(b)

    1.16

Bloomberg U.S. Aggregate Bond Index(b)

    2.09

The performance data quoted represent past performance. Past performance is no guarantee of future results. The investment return and the principal value of an investment will fluctuate and shares, if sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance results reflect the effects of leverage, resulting from borrowings under a credit agreement. Current total returns of the Fund can be obtained by visiting our website at cohenandsteers.com. The Fund’s returns assume the reinvestment of all dividends and distributions at prices obtained under the Fund’s dividend reinvestment plan. Index performance does not reflect the deduction of any fees, taxes or expenses. An investor cannot invest directly in an index. Performance figures for periods shorter than one year are not annualized.

Distribution Policy

Effective July 1, 2023, the Fund adopted a policy to make regular monthly distributions at a level rate (the Policy), which replaced the Fund’s previous managed distribution policy (the Plan). The Fund expects that these distributions will continue to be declared and announced on a quarterly basis. As a result of the Policy, the Fund may pay distributions in excess of its investment company taxable income and realized gains. This excess would be a return of capital distributed from the Fund’s assets. Distributions of capital decrease the Fund’s total assets and, therefore, could have the effect of increasing the Fund’s expense ratio. In order to make these distributions, the Fund may have to sell portfolio securities at a less opportune time, which could have an adverse effect on the market price of the Fund’s shares. The Board may amend or terminate the Policy, or re-adopt a managed distribution plan, at any time without prior notice to shareholders. In accordance with the Plan, the Fund distributed $0.135 per share on a monthly basis through June 30, 2023. Effective July 1, 2023, in accordance with the Policy, the Fund will distribute $0.126 per share on a monthly basis.

Under the Plan, the Fund’s monthly distributions could include long-term capital gains, short-term capital gains, net investment income and/or return of capital for federal income tax purposes. Return of capital includes distributions paid by the Fund in excess of its net investment income and net realized capital gains and such excess is distributed from the Fund’s assets. A return of capital is not taxable; rather, it reduces a shareholder’s tax basis in his or her shares of the Fund. The amount of monthly distributions may vary depending on a number of factors, including changes in portfolio and market conditions.

 

 

(a) 

As a closed-end investment company, the price of the Fund’s exchange-traded shares will be set by market forces and can deviate from the net asset value (NAV) per share of the Fund.

(b) 

For benchmark descriptions, see page 5.

 

1


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

Market Review

The six months ended June 30, 2023 were generally favorable for financial markets. Economic growth was largely better than expected, and previous worries about central banks’ aggressive monetary policy tightening gradually gave way to a more optimistic outlook as inflation appeared to slow in most markets (except for the U.K.). Short-term interest rates continued to rise, marking the steepest rate-hiking cycle in more than 40 years. However, as inflation pressures eased throughout the year, it was anticipated that the Federal Reserve and the European Central Bank would wrap up their rate hiking sometime in the second half of 2023. Despite occasional volatility, intermediate- and longer-term U.S. Treasury bond yields ended the period slightly lower than their initial levels.

Overall, fixed income asset classes demonstrated mostly positive total returns in the period; credit-sensitive fixed-income categories and securities with longer durations generally outperformed. Preferred securities, including low-duration preferreds, experienced significant volatility. Following a strong performance in January, preferreds faced intense selling pressure in the first quarter due to solvency concerns in the banking sector (the predominant issuers of preferred securities). However, most segments of the preferreds market recovered in the second quarter as the economic outlook improved and banking sector concerns eased. Nonetheless, there was a notable divergence in performance within the preferreds market, with exchange-traded securities generating a healthy 6.8% total return while contingent capital securities (CoCos), primarily issued by European banks, returned –7.9% (with the complete write-down of Credit Suisse CoCos weighing heavily on the index returns).

Fund Performance

The portfolio had a negative total return in the period on a net asset value basis and underperformed its blended benchmark. On a market price basis, the portfolio had a positive total return and performed in line with its blended benchmark.

In the U.S., the sudden collapse of Silicon Valley Bank (SVB) and Signature Bank in March raised concerns about contagion risk. These banks had a preponderance of uninsured deposits and/or substantial exposure to depositors in the technology sector that faced significant cash flow challenges. Unable to raise capital amid substantial deposit outflows, the banks required regulatory intervention. On May 1, First Republic Bank was placed into receivership despite a previous injection of $30 billion from a group of larger banks; its assets were sold to JPMorgan Chase.

Financial regulators took swift action to mitigate contagion risk within the U.S. banking industry. The Fed established an emergency loan program, accepting as collateral U.S. Treasuries and certain other high-quality securities at their par value—even if the securities had been marked down. The Fed and other central banks also assured that funding would remain readily available in the global banking system. The FDIC announced full guarantees for depositors in the banks that failed, even above the usual $250,000 threshold. Liquidity concerns continued to ease amid healthy first-quarter earnings releases, among other reports indicating stabilizing deposit funding. Asset quality remained strong by historical standards, although banks did increase reserves in preparation for higher capital requirements and macro uncertainty, given recent events. The Fund’s security selection and underweight in U.S. bank preferreds detracted from relative performance during the period, partly due to out-of-benchmark investments in several issues from Silicon Valley Bank.

In Europe, struggling Credit Suisse was acquired by rival UBS in March. In brokering the deal, the Swiss government took the unusual step of completely writing down the nominal value ($17 billion) of all

 

2


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

Credit Suisse Additional Tier 1 (AT1) bonds (CoCos), which added significant pressure to the CoCos and broader preferred securities market. Subsequently, lawsuits have been filed since the AT1 bonds were written down before the common equity, and a secondary market for ownership claims has emerged, potentially allowing for a partial recovery of the preferreds’ value.

Credit Suisse was an outlier among European banks; although it appeared to be on the mend, the company had made material management missteps in recent years that left it weakened and unprofitable. Other European banks do not face the same vulnerabilities as Credit Suisse. Overall, the sector displays the best profitability dynamics seen in years. Moreover, bank loans in Europe tend to be floating rate and/or shorter duration, enabling alignment with deposit yields. As well, European bank deposits tend to be more stable, and the money market fund industry is less developed. Additionally, regulators in Europe reassured the markets that their actions, in circumstances similar to those faced by Credit Suisse, would follow where “common equity instruments are the first ones to absorb losses, and only after their full use would Additional Tier 1 capital be required to be written down.” The Fund’s security selection in non-U.S. banks contributed to relative performance. However, an overweight allocation in the sector partially offset the positive effect of non-U.S. bank security selection.

The insurance sector performed well during the period. Property & casualty insurance companies experienced significant premium growth due to the recovering economy, while life insurers benefited from the declining impact of the Covid pandemic. However, the Fund’s security selection and underweight in the sector detracted from relative performance. This included a pair of thinly traded, out-of-benchmark issues from annuity provider SBL Holdings that came under pressure for no clear reason. An underweight allocation in the well-performing finance sector also modestly hindered relative performance.

The pipeline sector outperformed as company cash flows improved, supported by recovering demand and high crude oil and refined product prices. The portfolio’s overweight and security selection in pipelines contributed to relative performance.

Utilities, a capital-intensive sector, benefited from declining long-term interest rates, strong earnings results, and increased investor focus on balance sheet quality. The Fund’s overweight allocation in the sector aided relative performance. However, the positive effect of the overweight was offset by adverse security selection in the sector. Real estate also responded favorably to lower rates, as well as the improved economic outlook. The Fund’s security selection in real estate hindered relative performance, partly due to having no exposure to certain high-quality, low-coupon issues from Public Storage that rose meaningfully. However, the negative effect of our selection in real estate was largely offset by a favorable overweight allocation in the sector.

Telecommunications services performed well, aided by overall operational health in the sector. The Fund’s overweight in the telecommunications services sector contributed to relative performance, thanks to healthy returns on several out-of-index securities from U.S. and European service providers.

Impact of Leverage on Fund Performance

The Fund employs leverage as part of a yield-enhancement strategy. Leverage, which can increase total return in rising markets (just as it can have the opposite effect in declining markets), significantly detracted from the Fund’s performance for the six-month period ended June 30, 2023.

Impact of Derivatives on Fund Performance

In connection with its use of leverage, the Fund pays interest on a portion of its borrowings based on a floating rate under the terms of its credit agreement. To reduce the impact that an increase in

 

3


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

interest rates could have on the performance of the Fund with respect to these borrowings, the Fund used interest rate swaps to exchange a portion of the floating rate for a fixed rate. The Fund’s use of swaps significantly contributed to the Fund’s total return for the six months ended June 30, 2023.

The Fund used total return swaps with the intention of managing credit risk. The total return swaps did not have a material impact on the Fund’s total return for the six months ended June 30, 2023. The Fund invested in European equity index options with the intention of managing volatility in certain European holdings. The equity index options did not have a material effect on the Fund’s total return for the six months ended June 30, 2023.

The Fund used forward foreign currency exchange contracts for managing currency risk on certain Fund positions denominated in foreign currencies. The currency forwards detracted from the Fund’s total return for the six months ended June 30, 2023.

Sincerely,

 

LOGO    LOGO

WILLIAM F. SCAPELL

Portfolio Manager

  

ELAINE ZAHARIS-NIKAS

Portfolio Manager

LOGO

JERRY DOROST      

Portfolio Manager

The views and opinions in the preceding commentary are subject to change without notice and are as of the date of the report. There is no guarantee that any market forecast set forth in the commentary will be realized. This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice and is not intended to predict or depict performance of any investment.

 

Visit Cohen & Steers online at cohenandsteers.com

For more information about the Cohen & Steers family of mutual funds, visit cohenandsteers.com. Here you will find fund net asset values, fund fact sheets and portfolio highlights, as well as educational resources and timely market updates.

Our website also provides comprehensive information about Cohen & Steers, including our most recent press releases, profiles of our senior investment professionals and their investment approach to each asset class. The Cohen & Steers family of mutual funds specializes in liquid real assets, including real estate securities, listed infrastructure and natural resource equities, as well as preferred securities and other income solutions.

 

4


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

Performance Review (Unaudited)

Average Annual Total Returns—For Periods Ended June 30, 2023

 

      1 Year      5 Years      10 Years      Since Inception(a)  

Fund at NAV

     –0.63      2.02      5.30      6.96

Fund at Market Value

     –3.11      0.23      5.06      6.10

The performance data quoted represent past performance. Past performance is no guarantee of future results. The investment return will vary and the principal value of an investment will fluctuate and shares, if sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance results reflect the effect of leverage from utilization of borrowings under a credit agreement. Current total returns of the Fund can be obtained by visiting our website at cohenandsteers.com. The Fund’s returns assume the reinvestment of all dividends and distributions at prices obtained under the Fund’s dividend reinvestment plan. The performance table does not reflect the deduction of brokerage commissions or taxes that a shareholder would pay on Fund distributions or the sale of Fund shares.

 

(a)

Commencement of investment operations is November 24, 2010.

Benchmark Descriptions

The Blended Benchmark consists of 55% ICE BofA U.S. IG Institutional Capital Securities Index, 20% ICE BofA Core Fixed Rate Preferred Securities Index and 25% Bloomberg Developed Market USD Contingent Capital Index. The ICE BofA Fixed Rate Preferred Securities Index tracks the performance of fixed-rate U.S. dollar denominated preferred securities issued in the U.S. domestic market. The ICE BofA U.S. IG Institutional Capital Securities Index tracks the performance of U.S. dollar-denominated investment-grade hybrid capital corporate and preferred securities publicly issued in the U.S. domestic market. The ICE BofA Core Fixed Rate Preferred Securities Index tracks the performance of fixed-rate U.S. dollar-denominated preferred securities issued in the U.S. domestic market, excluding $1,000 par securities. The Bloomberg Developed Market USD Contingent Capital Index includes hybrid capital securities in developed markets with explicit equity conversion or write down loss absorption mechanisms that are based on an issuer’s regulatory capital ratio or other explicit solvency-based triggers. The Bloomberg U.S. Aggregate Bond Index is a broad-market measure of the U.S. dollar-denominated investment-grade fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, mortgage-backed securities, assetbacked securities, and commercial mortgage-backed securities. Benchmark returns are shown for comparative purposes only and may not be representative of the Fund’s portfolio.

The comparative indexes are not adjusted to reflect expenses or other fees that the U.S. Securities and Exchange Commission (SEC) requires to be reflected in the Fund’s performance. Index performance does not reflect the deduction of any fees, taxes or expenses. An investor cannot invest directly in an index. The Fund’s performance assumes dividends and distributions are reinvested at prices obtained under the Fund’s dividend reinvestment plan.

 

5


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

Our Leverage Strategy

(Unaudited)

Our current leverage strategy utilizes borrowings up to the maximum permitted by the Investment Company Act of 1940 to provide additional capital for the Fund, with an objective of increasing net income available for shareholders. As of June 30, 2023, leverage represented 36% of the Fund’s managed assets.

Through a combination of variable rate financing and interest rate swaps, the Fund has locked in interest rates on a significant portion of this additional capital through 2027 (where we effectively reduce our variable rate obligation and lock in our fixed rate obligation over various terms). Locking in a significant portion of our leveraging costs is designed to protect the dividend-paying ability of the Fund. The use of leverage increases the volatility of the Fund’s NAV in both up and down markets. However, we believe that locking in portions of the Fund’s leveraging costs for the various terms partially protects the Fund’s expenses from an increase in short-term interest rates.

Leverage Facts(a)(b)

 

Leverage (as a % of managed assets)

          36%  

% Variable Rate Financing

          16%  

Variable Rate

         5.9%  

% Fixed Rate Financing(c)

          84%  

Weighted Average Rate on Fixed Financing

         1.6%  

Weighted Average Term on Fixed Financing

         3.3 years  

The Fund seeks to enhance its dividend yield through leverage. The use of leverage is a speculative technique and there are special risks and costs associated with leverage. The NAV of the Fund’s shares may be reduced by the issuance and ongoing costs of leverage. So long as the Fund is able to invest in securities that produce an investment yield that is greater than the total cost of leverage, the leverage strategy will produce higher current net investment income for shareholders. On the other hand, to the extent that the total cost of leverage exceeds the incremental income gained from employing such leverage, shareholders would realize lower net investment income. In addition to the impact on net income, the use of leverage will have an effect of magnifying capital appreciation or depreciation for shareholders. Specifically, in an up market, leverage will typically generate greater capital appreciation than if the Fund were not employing leverage. Conversely, in down markets, the use of leverage will generally result in greater capital depreciation than if the Fund had been unlevered. To the extent that the Fund is required or elects to reduce its leverage, the Fund may need to liquidate investments, including under adverse economic conditions which may result in capital losses potentially reducing returns to shareholders. There can be no assurance that a leveraging strategy will be successful during any period in which it is employed.

 

 

 

(a) 

Data as of June 30, 2023. Information is subject to change.

(b) 

See Note 7 in Notes to Financial Statements.

(c) 

Represents fixed payer interest rate swap contracts on variable rate borrowing.

 

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COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

June 30, 2023

Top Ten Holdings(a)

(Unaudited)

 

Security

   Value        % of
Managed
Assets
 

Wells Fargo & Co., 3.90%, Series BB

   $ 6,434,126          1.8  

Emera, Inc., 6.75%, due 6/15/76, Series 16-A (Canada)

     6,303,921          1.8  

Charles Schwab Corp./The, 4.00%, Series I

     4,869,348          1.4  

BP Capital Markets PLC, 4.875% (United Kingdom)

     4,662,783          1.3  

Citigroup Capital III, 7.625%, due 12/1/36

     4,277,411          1.2  

Citigroup, Inc., 3.875%

     3,651,480          1.0  

Sempra, 4.875%

     3,515,782          1.0  

WESCO International, Inc., 10.625%, Series A

     3,476,566          1.0  

BNP Paribas SA, 7.75% (France)

     3,299,360          0.9  

Transcanada Trust, 5.875%, due 8/15/76, Series 16-A (Canada)

     3,174,883          0.9  

 

(a) 

Top ten holdings (excluding short-term investments and derivative instruments) are determined on the basis of the value of individual securities held. The Fund may also hold positions in other securities issued by the companies listed above. See the Schedule of Investments for additional details on such other positions.

Sector Breakdown(b)

(Based on Managed Assets)

(Unaudited)

 

LOGO

 

 

(b) 

Excludes derivative instruments.

 

7


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS

June 30, 2023 (Unaudited)

 

            Shares      Value  

PREFERRED SECURITIES—EXCHANGE-TRADED

     20.9%        

BANKING

     6.9%     

Bank of America Corp., 4.125%, Series PP(a)(b)

 

     63,685        1,166,709  

Bank of America Corp., 4.25%, Series QQ(a)(b)

 

     56,950        1,064,965  

Bank of America Corp., 4.375%, Series NN(a)(b)

 

     50,773        967,733  

Bank of America Corp., 4.75%, Series SS(a)(b)

 

     27,424        564,112  

Bank of America Corp., 5.375%, Series KK(a)(b)

 

     28,900      $ 664,700  

Dime Community Bancshares, Inc., 5.50%(a)

 

     16,391        268,157  

Federal Agricultural Mortgage Corp., 4.875%, Series G(a)

 

     27,286        558,272  

Morgan Stanley, 4.25%, Series O(a)(b)

 

     96,604        1,796,835  

Morgan Stanley, 6.50%, Series P(a)(b)

 

     35,768        928,537  

Regions Financial Corp., 5.70% to 5/15/29, Series C(a)(b)(c)

 

     31,093        635,852  

Texas Capital Bancshares, Inc., 5.75%, Series B(a)(b)

 

     63,262        1,206,406  

Wells Fargo & Co., 4.25%, Series DD(a)(b)

 

     70,801        1,207,865  

Wells Fargo & Co., 4.375%, Series CC(a)(b)

 

     73,781        1,288,216  

Wells Fargo & Co., 4.70%, Series AA(a)(b)

 

     79,147        1,459,471  

Wells Fargo & Co., 4.75%, Series Z(a)(b)

 

     47,750        909,160  

Wells Fargo & Co., 5.625%, Series Y(a)(b)

 

     40,358        933,077  

Wells Fargo & Co., 5.85%, Series Q(a)(b)(i)

 

     14,000        350,140  
        

 

 

 
           15,970,207  
        

 

 

 

CONSUMER STAPLE PRODUCTS

     0.2%     

CHS, Inc., 6.75% to 9/30/24, Series 3(a)(c)

 

     20,897        527,649  
        

 

 

 

FINANCIAL SERVICES

     0.1%     

Carlyle Finance LLC, 4.625%, due 5/15/61(b)

 

     14,745        267,327  
        

 

 

 

INDUSTRIAL SERVICES

     1.5%     

WESCO International, Inc., 10.625% to 6/22/25, Series A(a)(c)

 

     130,111        3,476,566  
        

 

 

 

INSURANCE

     5.8%     

AEGON Funding Co. LLC, 5.10%, due 12/15/49 (Netherlands)(b)

 

     30,990        657,298  

Allstate Corp./The, 7.375%, Series J(a)(b)

 

     58,369        1,560,203  

Arch Capital Group Ltd., 4.55%, Series G(a)(b)

 

     57,054        1,087,449  

Athene Holding Ltd., 4.875%, Series D(a)(b)

 

     40,172        654,804  

Athene Holding Ltd., 5.625%, Series B(a)(b)

 

     16,058        310,562  

Athene Holding Ltd., 6.35% to 6/30/29, Series A(a)(b)(c)

 

     6,427        134,967  

Athene Holding Ltd., 6.375% to 6/30/25, Series C(a)(b)(c)

 

     23,301        544,544  

Athene Holding Ltd., 7.75% to 12/30/27, Series E(a)(b)(c)

 

     52,153        1,246,457  

Brighthouse Financial, Inc., 5.375%, Series C(a)(b)

 

     37,973        633,390  

 

See accompanying notes to financial statements.

 

8


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2023 (Unaudited)

 

            Shares      Value  

Enstar Group Ltd., 7.00% to 9/1/28, Series D(a)(b)(c)

 

     56,113      $ 1,279,938  

Equitable Holdings, Inc., 4.30%, Series C(a)(b)

 

     6,011        96,897  

Equitable Holdings, Inc., 5.25%, Series A(a)(b)

 

     16,202        323,878  

Kemper Corp., 5.875% to 3/15/27, due 3/15/62(b)(c)

 

     10,007        175,122  

Lincoln National Corp., 9.00%, Series D(a)(b)

 

     34,325        922,656  

MetLife, Inc., 4.75%, Series F(a)(b)

 

     29,602        627,562  

MetLife, Inc., 5.625%, Series E(a)(b)

 

     18,722        462,808  

Prudential Financial, Inc., 5.95%, due 9/1/62(b)

 

     18,984        476,878  

Reinsurance Group of America, Inc., 7.125% to 10/15/27, due 10/15/52(b)(c)

 

     33,255        846,672  

RenaissanceRe Holdings Ltd., 4.20%, Series G (Bermuda)(a)

 

     34,863        624,048  

W R Berkley Corp., 4.125%, due 3/30/61(b)

 

     36,226        696,264  
        

 

 

 
           13,362,397  
        

 

 

 

PIPELINES

     1.6%     

Enbridge, Inc., 2.983% to 9/1/25, Series 15 (Canada)(a)(b)(c)

 

     36,891        387,080  

Energy Transfer LP, 7.60% to 5/15/24, Series E(a)(b)(c)

 

     70,970        1,730,249  

Energy Transfer LP, 7.625% to 8/15/23, Series D(a)(b)(c)

 

     43,726        1,104,519  

TC Energy Corp., 3.351% to 11/30/25, Series 11 (Canada)(a)(b)(c)

 

     26,957        331,684  
        

 

 

 
           3,553,532  
        

 

 

 

REAL ESTATE

     1.4%     

Brookfield Property Partners LP, 5.75%, Series A(a)(b)

 

     36,050        495,688  

Brookfield Property Partners LP, 6.50%, Series A-1(a)

 

     64,780        965,222  

Pebblebrook Hotel Trust, 6.375%, Series G(a)

 

     23,299        435,691  

Urstadt Biddle Properties, Inc., 5.875%, Series K(a)

 

     60,000        1,341,000  
        

 

 

 
           3,237,601  
        

 

 

 

TELECOMMUNICATIONS

     1.5%     

AT&T, Inc., 5.35%, due 11/1/66(b)

 

     34,571        829,704  

Telephone and Data Systems, Inc., 6.00%, Series VV(a)(b)

 

     68,967        947,607  

Telephone and Data Systems, Inc., 6.625%, Series UU(a)(b)

 

     21,173        319,712  

United States Cellular Corp., 5.50%, due 3/1/70(b)

 

     25,630        374,198  

United States Cellular Corp., 5.50%, due 6/1/70(b)

 

     29,095        421,877  

United States Cellular Corp., 6.25%, due 9/1/69(b)

 

     37,141        622,112  
        

 

 

 
           3,515,210  
        

 

 

 

 

See accompanying notes to financial statements.

 

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COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2023 (Unaudited)

 

            Shares      Value  

UTILITIES

     1.9%        

Algonquin Power & Utilities Corp., 6.20% to 7/1/24,
due 7/1/79, Series 19-A (Canada)(b)(c)

 

     22,887      $ 546,313  

Algonquin Power & Utilities Corp., 6.875% to 10/17/23, due 10/17/78 (Canada)(b)(c)

 

     22,121        562,316  

Brookfield BRP Holdings Canada, Inc., 4.625% (Canada)(a)(b)

 

     25,091        390,918  

Brookfield BRP Holdings Canada, Inc., 4.875% (Canada)(a)(b)

 

     34,274        573,747  

Brookfield Infrastructure Finance ULC, 5.00%, due 5/24/81 (Canada)(b)

 

     47,325        877,405  

Brookfield Infrastructure Partners LP, 5.125%, Series 13 (Canada)(a)(b)

 

     47,732        907,862  

CMS Energy Corp., 5.625%, due 3/15/78(b)

 

     17,739        429,284  
        

 

 

 
           4,287,845  
        

 

 

 

TOTAL PREFERRED SECURITIES—EXCHANGE-TRADED
(Identified cost—$54,677,421)

 

        48,198,334  
        

 

 

 
            Principal
Amount
        

PREFERRED SECURITIES—OVER-THE-COUNTER

     128.8%        

BANKING

     81.8%     

Abanca Corp. Bancaria SA, 6.00% to 1/20/26 (Spain)(a)(c)(d)(e)

 

   $ 1,200,000        1,134,237  

AIB Group PLC, 6.25% to 6/23/25 (Ireland)(a)(b)(c)(d)(e)

 

     1,600,000        1,653,074  

Australia & New Zealand Banking Group Ltd./
United Kingdom, 6.75% to 6/15/26 (Australia)(a)(b)(c)(e)(f)

 

     400,000        391,481  

Banco Bilbao Vizcaya Argentaria SA, 6.50% to 3/5/25,
Series 9 (Spain)(a)(c)(e)

 

     2,200,000        2,068,440  

Banco de Sabadell SA, 5.75% to 3/15/26 (Spain)(a)(b)(c)(d)(e)

 

     400,000        368,444  

Banco de Sabadell SA, 9.375% to 7/18/28 (Spain)(a)(b)(c)(d)(e)

 

     1,800,000        1,910,938  

Banco Mercantil del Norte SA/Grand Cayman, 6.625% to 1/24/32 (Mexico)(a)(c)(e)(f)

 

     600,000        464,400  

Banco Santander SA, 4.75% to 11/12/26 (Spain)(a)(c)(e)

 

     1,400,000        1,074,821  

Bank of America Corp., 4.375% to 1/27/27, Series RR(a)(b)(c)

 

     934,000        798,803  

Bank of America Corp., 5.875% to 3/15/28, Series FF(a)(b)(c)

 

     1,235,000        1,133,112  

Bank of America Corp., 6.10% to 3/17/25, Series AA(a)(b)(c)

 

     1,720,000        1,709,680  

Bank of America Corp., 6.125% to 4/27/27, Series TT(a)(b)(c)

 

     1,380,000        1,351,917  

Bank of America Corp., 6.25% to 9/5/24, Series X(a)(b)(c)

 

     2,255,000        2,232,450  

 

See accompanying notes to financial statements.

 

10


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2023 (Unaudited)

 

          Principal
Amount
     Value  

Bank of America Corp., 6.30% to 3/10/26, Series DD(a)(b)(c)

   $ 662,000      $ 663,490  

Bank of America Corp., 6.50% to 10/23/24, Series Z(a)(b)(c)

     2,321,000        2,320,350  

Bank of America Corp., 8.05%, due 6/15/27, Series B(b)

     1,815,000        1,962,028  

Bank of Ireland Group PLC, 6.00% to 9/1/25 (Ireland)(a)(c)(d)(e)

     500,000        517,660  

Bank of Ireland Group PLC, 7.50% to 5/19/25 (Ireland)(a)(c)(d)(e)

     1,210,000        1,297,504  

Bank of Nova Scotia/The, 4.90% to 6/4/25 (Canada)(a)(b)(c)

     1,380,000        1,306,267  

Bank of Nova Scotia/The, 8.625% to 10/27/27, due 10/27/82 (Canada)(b)(c)

     1,200,000        1,250,566  

Barclays PLC, 6.125% to 12/15/25 (United Kingdom)(a)(c)(e)

     2,200,000        1,931,050  

Barclays Bank PLC, 6.278% to 12/15/34 (United Kingdom)(a)(c)

     1,310,000        1,275,011  

Barclays PLC, 7.125% to 6/15/25 (United Kingdom)(a)(c)(e)

     600,000        693,001  

Barclays PLC, 8.00% to 6/15/24 (United Kingdom)(a)(c)(e)

     1,400,000        1,326,360  

Barclays PLC, 8.00% to 3/15/29 (United Kingdom)(a)(c)(e)

     3,000,000        2,687,700  

Barclays PLC, 8.875% to 9/15/27 (United Kingdom)(a)(c)(d)(e)

     400,000        468,874  

BNP Paribas SA, 4.625% to 1/12/27 (France)(a)(c)(e)(f)

     800,000        633,520  

BNP Paribas SA, 4.625% to 2/25/31 (France)(a)(c)(e)(f)

     2,275,000        1,629,469  

BNP Paribas SA, 6.625% to 3/25/24 (France)(a)(b)(c)(e)(f)

     780,000        752,018  

BNP Paribas SA, 7.00% to 8/16/28 (France)(a)(c)(e)(f)

     565,000        507,182  

BNP Paribas SA, 7.375% to 8/19/25 (France)(a)(c)(e)(f)

     1,200,000        1,166,488  

BNP Paribas SA, 7.75% to 8/16/29 (France)(a)(c)(e)(f)

     3,400,000        3,299,360  

BNP Paribas SA, 9.25% to 11/17/27 (France)(a)(c)(e)(f)

     1,400,000        1,446,358  

CaixaBank SA, 5.875% to 10/9/27 (Spain)(a)(c)(d)(e)

     800,000        783,239  

CaixaBank SA, 6.75% to 6/13/24 (Spain)(a)(c)(d)(e)

     200,000        211,844  

CaixaBank SA, 8.25% to 3/13/29 (Spain)(a)(c)(d)(e)

     1,400,000        1,477,076  

Charles Schwab Corp./The, 4.00% to 6/1/26, Series I(a)(b)(c)

     5,982,000        4,869,348  

Charles Schwab Corp./The, 4.00% to 12/1/30, Series H(a)(c)

     4,002,000        2,925,462  

Charles Schwab Corp./The, 5.375% to 6/1/25,
Series G(a)(b)(c)

     1,888,000        1,813,839  

Citigroup Capital III, 7.625%, due 12/1/36(b)

     4,115,000        4,277,411  

Citigroup, Inc., 3.875% to 2/18/26(a)(c)

     4,347,000        3,651,480  

Citigroup, Inc., 4.00% to 12/10/25, Series W(a)(c)

     650,000        556,563  

Citigroup, Inc., 5.00% to 9/12/24, Series U(a)(c)

     893,000        835,794  

Citigroup, Inc., 5.95% to 5/15/25, Series P(a)(b)(c)

     2,700,000        2,592,751  

Citigroup, Inc., 6.25% to 8/15/26, Series T(a)(c)

     2,129,000        2,100,322  

Citigroup, Inc., 7.375% to 5/15/28(a)(c)

     1,859,000        1,849,994  

 

See accompanying notes to financial statements.

 

11


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2023 (Unaudited)

 

          Principal
Amount
    Value  

Citizens Financial Group, Inc., 5.65% to 10/6/25,
Series F(a)(c)

   $ 1,342,000     $ 1,180,703  

CoBank ACB, 6.25% to 10/1/26, Series I(a)(b)(c)

     2,534,000       2,380,972  

CoBank ACB, 6.45% to 10/1/27, Series K(a)(b)(c)

     1,370,000       1,270,675  

Commerzbank AG, 7.00% to 4/9/25 (Germany)(a)(c)(d)(e)

     1,200,000       1,097,552  

Credit Agricole SA, 4.75% to 3/23/29 (France)(a)(c)(e)(f)

     1,600,000       1,276,000  

Credit Agricole SA, 6.875% to 9/23/24 (France)(a)(b)(c)(e)(f)

     1,900,000       1,835,704  

Credit Agricole SA, 7.25% to 9/23/28, Series EMTN (France)(a)(b)(c)(d)(e)

     1,000,000       1,087,414  

Credit Agricole SA, 8.125% to 12/23/25 (France)(a)(b)(c)(e)(f)

     1,250,000       1,257,031  

Credit Suisse Group AG, 5.25% to 2/11/27, Claim (Switzerland)(a)(c)(e)(f)(g)(h)

     1,400,000       59,262  

Credit Suisse Group AG, 6.375% to 8/21/26, Claim (Switzerland)(a)(c)(e)(f)(g)(h)

     3,200,000       135,455  

Credit Suisse Group AG, 7.25% to 9/12/25, Claim (Switzerland)(a)(c)(e)(f)(g)(h)

     600,000       25,398  

Credit Suisse Group AG, 7.50% to 7/17/23, Claim (Switzerland)(a)(c)(e)(f)(g)(h)

     1,000,000       42,330  

Danske Bank A/S, 7.00% to 6/26/25 (Denmark)(a)(c)(d)(e)

     2,200,000       2,076,899  

Deutsche Bank AG, 6.00% to 10/30/25, Series 2020 (Germany)(a)(c)(e)

     2,800,000       2,248,120  

Deutsche Bank AG, 7.50% to 4/30/25 (Germany)(a)(c)(e)

     800,000       709,920  

Deutsche Bank AG, 10.00% to 12/1/27 (Germany)(a)(c)(d)(e)

     1,600,000       1,735,019  

Deutsche Bank AG/New York, 7.079% to 11/10/32, due 2/10/34 (Germany)(c)

     400,000       370,182  

DNB Bank ASA, 4.875% to 11/12/24 (Norway)(a)(b)(c)(d)(e)

     1,000,000       942,509  

Dresdner Funding Trust I, 8.151%, due 6/30/31(f)

     757,869       810,636  

Farm Credit Bank of Texas, 5.70% to 9/15/25, Series 4(a)(c)(f)

     1,850,000       1,729,750  

Farm Credit Bank of Texas, 6.75% to 9/15/23(a)(c)(f)

      9,779       971,788  

First Horizon Bank, 6.061% (3 Month US LIBOR + 0.85%, Floor 3.75%)(a)(b)(f)(i)

      1,537       983,188  

Goldman Sachs Capital I, 6.345%, due 2/15/34

     1,007,000       1,009,925  

Goldman Sachs Group, Inc./The, 3.65% to 8/10/26,
Series U(a)(c)

     1,472,000       1,141,536  

HSBC Capital Funding Dollar 1 LP, 10.176% to 6/30/30 (United Kingdom)(a)(c)(f)

     1,797,000       2,226,725  

HSBC Holdings PLC, 4.60% to 12/17/30
(United Kingdom)(a)(c)(e)

     3,000,000       2,291,250  

 

See accompanying notes to financial statements.

 

12


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2023 (Unaudited)

 

          Principal
Amount
     Value  

HSBC Holdings PLC, 6.375% to 3/30/25
(United Kingdom)(a)(b)(c)(e)

   $ 3,200,000      $ 3,068,880  

HSBC Holdings PLC, 6.50%, due 9/15/37
(United Kingdom)(b)

     600,000        628,991  

HSBC Holdings PLC, 6.50% to 3/23/28
(United Kingdom)(a)(b)(c)(e)

     1,200,000        1,083,885  

HSBC Holdings PLC, 6.547% to 6/20/33, due 6/20/34
(United Kingdom)(b)(c)

     800,000        797,384  

HSBC Holdings PLC, 8.00% to 3/7/28
(United Kingdom)(a)(b)(c)(e)

     2,600,000        2,587,663  

Huntington Bancshares, Inc./OH., 4.45% to 10/15/27,
Series G(a)(c)

     1,020,000        830,938  

Huntington Bancshares, Inc./OH., 5.625% to 7/15/30,
Series F(a)(c)

     926,000        832,115  

Iccrea Banca SpA, 4.75% to 10/18/26, due 1/18/32,
Series EMTN (Italy)(b)(c)(d)

     400,000        377,021  

ING Groep N.V., 4.25% to 5/16/31, Series NC10 (Netherlands)(a)(c)(e)

     2,400,000        1,602,725  

ING Groep N.V., 4.875% to 5/16/29 (Netherlands)(a)(c)(d)(e)

     2,400,000        1,865,261  

ING Groep N.V., 5.75% to 11/16/26 (Netherlands)(a)(c)(e)

     2,200,000        1,944,757  

ING Groep N.V., 6.50% to 4/16/25 (Netherlands)(a)(c)(e)

     1,800,000        1,681,380  

ING Groep N.V., 6.75% to 4/16/24 (Netherlands)(a)(c)(d)(e)

     1,000,000        956,250  

ING Groep N.V., 7.50% to 5/16/28 (Netherlands)(a)(c)(d)(e)

     1,800,000        1,657,035  

Intesa Sanpaolo SpA, 5.875% to 9/1/31, Series EMTN (Italy)(a)(c)(d)(e)

     400,000        348,385  

Intesa Sanpaolo SpA, 7.70% to 9/17/25 (Italy)(a)(c)(e)(f)

     2,400,000        2,259,000  

JPMorgan Chase & Co., 3.65% to 6/1/26, Series KK(a)(b)(c)

     992,000        875,589  

JPMorgan Chase & Co., 4.60% to 2/1/25, Series HH(a)(b)(c)

     161,000        150,535  

JPMorgan Chase & Co., 5.00% to 8/1/24, Series FF(a)(b)(c)

     394,000        385,135  

JPMorgan Chase & Co., 6.10% to 10/1/24, Series X(a)(b)(c)

     3,173,000        3,167,685  

JPMorgan Chase & Co., 6.125% to 4/30/24, Series U(a)(b)(c)

     328,000        327,345  

JPMorgan Chase & Co., 6.75% to 2/1/24, Series S(a)(b)(c)

     1,430,000        1,434,612  

Julius Baer Group Ltd., 6.875% to 6/9/27 (Switzerland)(a)(b)(c)(d)(e)

     800,000        704,270  

Lloyds Banking Group PLC, 6.75% to 6/27/26
(United Kingdom)(a)(c)(e)

     600,000        549,628  

Lloyds Banking Group PLC, 7.50% to 6/27/24
(United Kingdom)(a)(c)(e)

     2,337,000        2,234,523  

 

See accompanying notes to financial statements.

 

13


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2023 (Unaudited)

 

          Principal
Amount
     Value  

Lloyds Banking Group PLC, 7.50% to 9/27/25
(United Kingdom)(a)(c)(e)

   $ 1,800,000      $ 1,687,770  

Lloyds Banking Group PLC, 8.00% to 9/27/29
(United Kingdom)(a)(c)(e)

     1,600,000        1,465,840  

M&T Bank Corp., 5.125% to 11/1/26, Series F(a)(c)

     900,000        713,796  

Macquarie Bank Ltd./London, 6.125% to 3/8/27 (Australia)(a)(c)(e)(f)

     400,000        360,641  

Nationwide Building Society, 5.75% to 6/20/27
(United Kingdom)(a)(c)(d)(e)

     600,000        654,367  

Natwest Group PLC, 4.60% to 6/28/31
(United Kingdom)(a)(c)(e)

     1,200,000        834,000  

Natwest Group PLC, 6.00% to 12/29/25
(United Kingdom)(a)(c)(e)

     3,400,000        3,153,500  

Natwest Group PLC, 8.00% to 8/10/25
(United Kingdom)(a)(c)(e)

     1,200,000        1,169,196  

Nordea Bank Abp, 6.625% to 3/26/26 (Finland)(a)(b)(c)(e)(f)

     1,800,000        1,706,022  

PNC Financial Services Group, Inc./The, 3.40% to 9/15/26, Series T(a)(c)

     839,000        620,860  

PNC Financial Services Group, Inc./The, 6.00% to 5/15/27, Series U(a)(b)(c)

     1,381,000        1,246,352  

PNC Financial Services Group, Inc./The, 6.20% to 9/15/27, Series V(a)(b)(c)

     2,176,000        2,033,798  

PNC Financial Services Group, Inc./The, 6.25% to 3/15/30, Series W(a)(b)(c)

     2,010,000        1,809,502  

Regions Financial Corp., 5.75% to 6/15/25, Series D(a)(c)

     529,000        502,047  

Skandinaviska Enskilda Banken AB, 6.875% to 6/30/27 (Sweden)(a)(b)(c)(d)(e)

     400,000        377,500  

Societe Generale SA, 4.75% to 5/26/26 (France)(a)(c)(e)(f)

     400,000        316,996  

Societe Generale SA, 5.375% to 11/18/30 (France)(a)(c)(e)(f)

     2,200,000        1,637,854  

Societe Generale SA, 6.75% to 4/6/28 (France)(a)(c)(e)(f)

     1,160,000        942,913  

Societe Generale SA, 7.875% to 1/18/29, Series EMTN (France)(a)(c)(d)(e)

     600,000        627,959  

Societe Generale SA, 8.00% to 9/29/25 (France)(a)(c)(e)(f)

     1,000,000        939,360  

Societe Generale SA, 9.375% to 11/22/27 (France)(a)(c)(e)(f)

     2,600,000        2,548,000  

Standard Chartered PLC, 4.75% to 1/14/31
(United Kingdom)(a)(c)(e)(f)

     2,200,000        1,607,705  

Standard Chartered PLC, 7.75% to 8/15/27
(United Kingdom)(a)(c)(e)(f)

     1,600,000        1,588,416  

Swedbank AB, 7.625% to 3/17/28 (Sweden)(a)(c)(d)(e)

     200,000        184,336  

 

See accompanying notes to financial statements.

 

14


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2023 (Unaudited)

 

            Principal
Amount
     Value  

Toronto-Dominion Bank/The, 8.125% to 10/31/27, due 10/31/82 (Canada)(b)(c)

 

   $ 3,000,000      $ 3,055,140  

Truist Financial Corp., 4.95% to 9/1/25, Series P(a)(b)(c)

 

     694,000        643,685  

Truist Financial Corp., 5.10% to 3/1/30, Series Q(a)(b)(c)

 

     1,222,000        1,063,140  

Truist Financial Corp., 5.125% to 12/15/27, Series M(a)(c)

 

     1,119,000        859,112  

UBS Group AG, 4.375% to 2/10/31 (Switzerland)(a)(c)(e)(f)

 

     1,400,000        989,716  

UBS Group AG, 4.875% to 2/12/27 (Switzerland)(a)(c)(e)(f)

 

     2,000,000        1,606,100  

UBS Group AG, 5.125% to 7/29/26 (Switzerland)(a)(c)(d)(e)

 

     1,400,000        1,222,885  

UBS Group AG, 6.875% to 8/7/25 (Switzerland)(a)(c)(d)(e)

 

     2,200,000        2,019,668  

UBS Group AG, 7.00% to 2/19/25 (Switzerland)(a)(c)(d)(e)

 

     1,200,000        1,144,984  

UniCredit SpA, 8.00% to 6/3/24 (Italy)(a)(c)(d)(e)

 

     2,200,000        2,157,958  

US Bancorp, 5.30% to 4/15/27, Series J(a)(b)(c)

 

     1,000,000        815,000  

Virgin Money UK PLC, 8.25% to 6/17/27
(United Kingdom)(a)(c)(d)(e)

 

     400,000        429,189  

Wells Fargo & Co., 3.90% to 3/15/26, Series BB(a)(c)

 

     7,303,000        6,434,126  

Wells Fargo & Co., 5.875% to 6/15/25, Series U(a)(i)

 

     1,224,000        1,202,455  

Wells Fargo & Co., 5.95%, due 12/15/36

 

     1,712,000        1,693,718  

Wells Fargo & Co., 7.95%, due 11/15/29, Series B

 

     249,000        273,159  
     

 

 

 
           188,956,876  
        

 

 

 

CONSUMER STAPLE PRODUCTS

     0.8%     

Land O’ Lakes, Inc., 7.00%(a)(f)

 

     1,100,000        904,497  

Land O’ Lakes, Inc., 7.25%(a)(f)

 

     1,190,000        963,900  
        

 

 

 
           1,868,397  
        

 

 

 

ENERGY

     2.9%     

BP Capital Markets PLC, 4.375% to 6/22/25
(United Kingdom)(a)(b)(c)

 

     2,170,000        2,086,997  

BP Capital Markets PLC, 4.875% to 3/22/30
(United Kingdom)(a)(b)(c)

 

     5,112,000        4,662,783  
     

 

 

 
           6,749,780  
        

 

 

 

FINANCIAL SERVICES

     1.9%     

Aircastle Ltd., 5.25% to 6/15/26(a)(c)(f)

 

     620,000        435,798  

Ally Financial, Inc., 4.70% to 5/15/28, Series C(a)(c)

 

     1,178,000        762,755  

American Express Co., 3.55% to 9/15/26(a)(c)

 

     1,621,000        1,349,482  

Apollo Management Holdings LP, 4.95% to 12/17/24, due 1/14/50(b)(c)(f)

 

     878,000        735,706  

 

See accompanying notes to financial statements.

 

15


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2023 (Unaudited)

 

            Principal
Amount
     Value  

Ares Finance Co. III LLC, 4.125% to 6/30/26, due 6/30/51(c)(f)

 

   $ 1,075,000      $ 786,147  

Discover Financial Services, 6.125% to 6/23/25,
Series D(a)(c)

 

     400,000        382,175  
     

 

 

 
           4,452,063  
        

 

 

 

INSURANCE

     17.0%     

Aegon NV, 5.50% to 4/11/28, due 4/11/48 (Netherlands)(b)(c)

 

     1,200,000        1,142,472  

Aegon NV, 5.625% to 4/15/29 (Netherlands)(a)(c)(d)(e)

 

     1,400,000        1,363,915  

Allianz SE, 3.50% to 11/17/25 (Germany)(a)(b)(c)(e)(f)

 

     1,600,000        1,324,760  

Allianz SE, 5.824% to 1/25/33, due 7/25/53 (Germany)(b)(c)(d)

 

     200,000        224,491  

Assurant, Inc., 7.00% to 3/27/28, due 3/27/48(c)

 

     1,555,000        1,495,784  

AXA SA, 8.60%, due 12/15/30 (France)(b)

 

     525,000        635,717  

AXIS Specialty Finance LLC, 4.90% to 1/15/30, due 1/15/40(c)

 

     545,000        435,427  

CNP Assurances, 4.875% to 10/7/30 (France)(a)(c)(d)(e)

 

     1,000,000        747,200  

CNP Assurances, 5.25% to 1/18/33, due 7/18/53,
Series EMTN (France)(b)(c)(d)

 

     800,000        837,795  

Corebridge Financial, Inc., 6.875% to 9/15/27, due 12/15/52(b)(c)

 

     2,040,000        1,958,927  

Enstar Finance LLC, 5.50% to 1/15/27, due 1/15/42(c)

 

     1,390,000        1,039,525  

Enstar Finance LLC, 5.75% to 9/1/25, due 9/1/40(b)(c)

 

     1,770,000        1,530,032  

Equitable Holdings, Inc., 4.95% to 9/15/25, Series B(a)(b)(c)

 

     1,150,000        1,070,881  

Fukoku Mutual Life Insurance Co., 5.00% to 7/28/25 (Japan)(a)(b)(c)(d)

 

     1,020,000        990,292  

Global Atlantic Fin Co., 4.70% to 7/15/26, due 10/15/51(c)(f)

 

     1,763,000        1,253,178  

Hartford Financial Services Group, Inc./The, 7.446% (3 Month US LIBOR + 2.125%), due 2/12/47, Series ICON(b)(f)(i)

 

     1,400,000        1,165,577  

ILFC E-Capital Trust I, 7.064% (30 Year CMT + 1.55%), due 12/21/65(f)(i)

 

     1,204,000        812,212  

La Mondiale SAM, 5.875% to 1/26/27, due 1/26/47 (France)(b)(c)(d)

 

     1,200,000        1,154,009  

Lancashire Holdings Ltd., 5.625% to 3/18/31, due 9/18/41 (United Kingdom)(c)(d)

 

     1,200,000        998,412  

Liberty Mutual Group, Inc., 4.125% to 9/15/26, due 12/15/51(c)(f)

 

     1,250,000        984,682  

 

See accompanying notes to financial statements.

 

16


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2023 (Unaudited)

 

            Principal
Amount
     Value  

Lincoln National Corp., 9.25% to 12/1/27, Series C(a)(b)(c)

 

   $ 728,000      $ 766,254  

Markel Group, Inc., 6.00% to 6/1/25(a)(c)

 

     690,000        666,695  

MetLife Capital Trust IV, 7.875%, due 12/15/37(b)(f)

 

     2,878,000        3,019,709  

MetLife, Inc., 9.25%, due 4/8/38(b)(f)

 

     2,609,000        3,028,237  

Phoenix Group Holdings PLC, 5.625% to 1/29/25
(United Kingdom)(a)(c)(d)(e)

 

     600,000        530,342  

Prudential Financial, Inc., 5.125% to 11/28/31, due 3/1/52(b)(c)

 

     1,410,000        1,276,840  

Prudential Financial, Inc., 6.00% to 6/1/32, due 9/1/52(b)(c)

 

     1,785,000        1,700,460  

Prudential Financial, Inc., 6.75% to 12/1/32, due 3/1/53(b)(c)

 

     840,000        847,283  

QBE Insurance Group Ltd., 5.875% to 6/17/26, due 6/17/46, Series EMTN (Australia)(b)(c)(d)

 

     200,000        190,862  

QBE Insurance Group Ltd., 5.875% to 5/12/25 (Australia)(a)(b)(c)(f)

 

     1,800,000        1,717,573  

Rothesay Life PLC, 4.875% to 4/13/27, Series NC6
(United Kingdom)(a)(c)(d)(e)

 

     1,000,000        746,615  

SBL Holdings, Inc., 6.50% to 11/13/26(a)(c)(f)

 

     1,730,000        943,457  

SBL Holdings, Inc., 7.00% to 5/13/25(a)(c)(f)

 

     1,466,000        887,716  

Swiss Re Finance Luxembourg SA, 5.00% to 4/2/29, due 4/2/49 (Switzerland)(b)(c)(f)

 

     800,000        767,394  

Zurich Finance Ireland Designated Activity Co., 3.00% to 1/19/31, due 4/19/51, Series EMTN (Switzerland)(c)(d)

 

     1,166,000        913,992  
        

 

 

 
           39,168,717  
        

 

 

 

PIPELINES

     8.7%        

Enbridge, Inc., 5.50% to 7/15/27, due 7/15/77 (Canada)(b)(c)

 

     275,000        245,258  

Enbridge, Inc., 5.75% to 4/15/30, due 7/15/80,
Series 20-A (Canada)(b)(c)

 

     2,900,000        2,622,453  

Enbridge, Inc., 6.00% to 1/15/27, due 1/15/77,
Series 16-A (Canada)(b)(c)

 

     1,724,000        1,602,171  

Enbridge, Inc., 6.25% to 3/1/28, due 3/1/78 (Canada)(b)(c)

 

     1,970,000        1,816,102  

Enbridge, Inc., 7.375% to 10/15/27, due 1/15/83 (Canada)(b)(c)

 

     998,000        981,142  

Enbridge, Inc., 7.625% to 10/15/32, due 1/15/83 (Canada)(b)(c)

 

     2,152,000        2,167,862  

Energy Transfer LP, 6.50% to 11/15/26, Series H(a)(c)

 

     1,400,000        1,275,148  

Energy Transfer LP, 7.125% to 5/15/30, Series G(a)(c)

 

     1,748,000        1,486,537  

Enterprise Products Operating LLC, 8.304% (3 Month US LIBOR + 2.986%), due 8/16/77, Series D(b)(i)

 

     986,000        971,979  

 

See accompanying notes to financial statements.

 

17


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2023 (Unaudited)

 

            Principal
Amount
     Value  

Transcanada Trust, 5.50% to 9/15/29, due 9/15/79 (Canada)(b)(c)

 

   $ 3,007,000      $ 2,590,531  

Transcanada Trust, 5.60% to 12/7/31, due 3/7/82 (Canada)(b)(c)

 

     1,348,000        1,137,631  

Transcanada Trust, 5.875% to 8/15/26, due 8/15/76,
Series 16-A (Canada)(b)(c)

 

     3,357,000        3,174,883  
        

 

 

 
           20,071,697  
        

 

 

 

REAL ESTATE

     1.9%        

Scentre Group Trust 2, 4.75% to 6/24/26, due 9/24/80 (Australia)(b)(c)(f)

 

     2,500,000        2,241,250  

Scentre Group Trust 2, 5.125% to 6/24/30, due 9/24/80 (Australia)(b)(c)(f)

 

     2,500,000        2,113,056  
        

 

 

 
           4,354,306  
        

 

 

 

TELECOMMUNICATIONS

     1.0%        

Telefonica Europe BV, 6.135% to 2/3/30 (Spain)(a)(c)(d)

 

     700,000        738,773  

Vodafone Group PLC, 4.125% to 3/4/31, due 6/4/81
(United Kingdom)(c)

 

     2,125,000        1,688,206  
        

 

 

 
           2,426,979  
        

 

 

 

UTILITIES

     12.8%        

Algonquin Power & Utilities Corp., 4.75% to 1/18/27, due 1/18/82 (Canada)(c)

 

     2,524,000        2,010,013  

American Electric Power Co., Inc., 3.875% to 11/15/26, due 2/15/62(c)

 

     1,481,000        1,183,660  

CMS Energy Corp., 4.75% to 3/1/30, due 6/1/50(c)

 

     992,000        855,332  

Dominion Energy, Inc., 4.35% to 1/15/27, Series C(a)(c)

 

     3,625,000        3,063,566  

Dominion Energy, Inc., 4.65% to 12/15/24, Series B(a)(b)(c)

 

     660,000        596,706  

Edison International, 5.00% to 12/15/26, Series B(a)(b)(c)

 

     2,346,000        2,032,574  

Edison International, 5.375% to 3/15/26, Series A(a)(c)

 

     2,320,000        2,033,248  

Electricite de France SA, 7.50% to 9/6/28, Series EMTN (France)(a)(b)(c)(d)

 

     1,000,000        1,110,920  

Electricite de France SA, 9.125% to 3/15/33 (France)(a)(b)(c)(f)

 

     1,000,000        1,027,980  

Emera, Inc., 6.75% to 6/15/26, due 6/15/76, Series 16-A (Canada)(b)(c)

 

     6,494,000        6,303,921  

Enel SpA, 6.375% to 4/16/28, Series EMTN (Italy)(a)(b)(c)(d)

 

     400,000        440,452  

Enel SpA, 6.625% to 4/16/31, Series EMTN (Italy)(a)(b)(c)(d)

 

     500,000        550,077  

 

See accompanying notes to financial statements.

 

18


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2023 (Unaudited)

 

            Principal
Amount
     Value  

NextEra Energy Capital Holdings, Inc., 3.80% to 3/15/27, due 3/15/82(b)(c)

 

   $ 392,000      $ 331,055  

NextEra Energy Capital Holdings, Inc., 5.65% to 5/1/29, due 5/1/79(b)(c)

 

     678,000        630,522  

Sempra, 4.125% to 1/1/27, due 4/1/52(b)(c)

 

     1,790,000        1,450,430  

Sempra, 4.875% to 10/15/25(a)(c)

 

     3,770,000        3,515,782  

Southern Co./The, 3.75% to 6/15/26, due 9/15/51,
Series 21-A(b)(c)

 

     2,040,000        1,741,140  

Southern Co./The, 4.00% to 10/15/25, due 1/15/51,
Series B(b)(c)

 

     750,000        695,490  
     

 

 

 
           29,572,868  
     

 

 

 

TOTAL PREFERRED SECURITIES—OVER-THE-COUNTER
(Identified cost—$323,907,057)

 

        297,621,683  
     

 

 

 

CORPORATE BONDS—BANKING

     0.4%        

Intesa Sanpaolo SpA, 8.248%, to 11/21/32, due 11/21/33 (Italy)(b)(c)(f)

 

     800,000        840,837  
     

 

 

 

TOTAL CORPORATE BONDS
(Identified cost—$800,000)

 

        840,837  
     

 

 

 
            Number of
Shares
        

SHORT-TERM INVESTMENTS

     3.2%        

MONEY MARKET FUNDS

        

State Street Institutional Treasury Plus Money Market Fund, Premier Class, 5.02%(j)

 

     3,320,332        3,320,332  

State Street Institutional U.S. Government Money Market Fund, Premier Class, 5.03%(j)

 

     4,205,000        4,205,000  
     

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Identified cost—$7,525,332)

 

        7,525,332  
     

 

 

 

TOTAL INVESTMENTS IN SECURITIES
(Identified cost—$386,909,810)

     153.3%           354,186,186  

LIABILITIES IN EXCESS OF OTHER ASSETS

     (53.3)             (123,121,016
  

 

 

       

 

 

 

NET ASSETS (Equivalent to $19.21 per share based on 12,026,622 shares of common stock outstanding)

     100.0%         $ 231,065,170  
  

 

 

       

 

 

 

 

See accompanying notes to financial statements.

 

19


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2023 (Unaudited)

 

Centrally Cleared Interest Rate Swap Contracts

 

                 

Notional

Amount

  Fixed
Rate
Payable
  Fixed
Payment
Frequency
    Floating Rate
Receivable
(resets monthly)
  Floating
Payment
Frequency
    Maturity
Date
    Value     Upfront
Receipts
(Payments)
    Unrealized
Appreciation
(Depreciation)
 

$40,000,000

  0.930%     Monthly     5.193%(k)     Monthly       7/15/23     $ 151,222     $     $ 151,222  

  30,000,000

  0.548%     Monthly     5.148%(k)     Monthly       7/15/23       122,782             122,782  

  39,000,000

  1.181%     Monthly     5.157%(k)     Monthly       7/15/23       137,912             137,912  

  30,000,000

  0.548%     Monthly     USD-SOFR-OIS(l)     Monthly       9/15/25       2,597,175       6,247       2,603,422  

  39,000,000

  1.181%     Monthly     USD-SOFR-OIS(l)     Monthly       9/15/26       3,685,550       8,833       3,694,383  

  40,000,000

  0.930%     Monthly     USD-SOFR-OIS(l)     Monthly       9/15/27       4,856,199       9,165       4,865,364  
            $ 11,550,840     $ 24,245     $ 11,575,085  

 

 

Over-the-Counter Total Return Swap Contracts

 

                   
Counterparty  

Notional

Amount

  Fixed
Payable
Rate
    Fixed
Payment
Frequency
    Underlying
Reference
Entity
    Position     Maturity
Date
    Value     Premiums
Paid
   

Unrealized
Appreciation

(Depreciation)

 

BNP Paribas

  $       3,065,937     0.25     Monthly       BNPXCHY5 Index (m)      Short       5/15/24       $22,939       $—       $22,939  

BNP Paribas

  EUR 2,755,707     0.30     Monthly       BNPXCEX5 Index (n)      Short       5/15/24       14,974             14,974  
    $37,913       $—       $37,913  

 

 

 

See accompanying notes to financial statements.

 

20


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2023 (Unaudited)

 

Forward Foreign Currency Exchange Contracts

 

         
Counterparty    Contracts to
Deliver
     In Exchange
For
       Settlement
Date
       Unrealized
Appreciation
(Depreciation)
 

Brown Brothers Harriman

   CAD      909,506      USD      669,687          7/5/23        $ (16,862

Brown Brothers Harriman

   CAD      49,544      USD      37,117          7/5/23          (282

Brown Brothers Harriman

   EUR      13,306,865      USD      14,211,732          7/5/23          (308,724

Brown Brothers Harriman

   EUR      3,768,600      USD      4,024,865          7/5/23          (87,433

Brown Brothers Harriman

   EUR      600,000      USD      645,190          7/5/23          (9,531

Brown Brothers Harriman

   EUR      303,776      USD      328,046          7/5/23          (3,434

Brown Brothers Harriman

   GBP      2,584,652      USD      3,205,253          7/5/23          (77,253

Brown Brothers Harriman

   USD      724,566      CAD      959,050          7/5/23          (618

Brown Brothers Harriman

   USD      14,202,756      EUR      13,006,663          7/5/23          (9,881

Brown Brothers Harriman

   USD      4,503,835      EUR      4,124,542          7/5/23          (3,133

Brown Brothers Harriman

   USD      349,219      EUR      319,611          7/5/23          (459

Brown Brothers Harriman

   USD      310,515      EUR      284,367          7/5/23          (214

Brown Brothers Harriman

   USD      265,829      EUR      244,058          7/5/23          487  

Brown Brothers Harriman

   USD      895,187      GBP      700,000          7/5/23          (6,187

Brown Brothers Harriman

   USD      2,252,477      GBP      1,772,376          7/5/23          (1,561

Brown Brothers Harriman

   USD      143,011      GBP      112,276          7/5/23          (420

Brown Brothers Harriman

   CAD      941,500      USD      711,530          8/2/23          542  

Brown Brothers Harriman

   EUR      4,034,973      USD      4,411,718          8/2/23          2,723  

Brown Brothers Harriman

   EUR      13,068,937      USD      14,289,184          8/2/23          8,821  

Brown Brothers Harriman

   GBP      1,768,030      USD      2,247,219          8/2/23          1,372  
                      $ (512,047

 

 

Glossary of Portfolio Abbreviations

 

 

CAD

  Canadian Dollar

CMT

  Constant Maturity Treasury

EMTN

  Euro Medium Term Note

EUR

  Euro Currency

GBP

  Great British Pound

LIBOR

  London Interbank Offered Rate

OIS

  Overnight Indexed Swap

SOFR

  Secured Overnight Financing Rate

USD

  United States Dollar

 

See accompanying notes to financial statements.

 

21


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2023 (Unaudited)

 

 

Note:

Percentages indicated are based on the net assets of the Fund.

 

Represents shares.

(a) 

Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer.

(b) 

All or a portion of the security is pledged as collateral in connection with the Fund’s credit agreement. $180,229,821 in aggregate has been pledged as collateral.

(c) 

Security converts to floating rate after the indicated fixed-rate coupon period.

(d) 

Securities exempt from registration under Regulation S of the Securities Act of 1933. These securities are subject to resale restrictions. Aggregate holdings amounted to $43,027,498 which represents 18.6% of the net assets of the Fund, of which 0.0% are illiquid.

(e) 

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 $105,343,750 which represents 45.6% of the net assets of the Fund (29.3% of the managed assets of the Fund).

(f) 

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 $64,099,932 which represents 27.7% of the net assets of the Fund, of which 0.0% are illiquid.

(g) 

Non-income producing security.

(h) 

Security is in default.

(i) 

Variable rate. Rate shown is in effect at June 30, 2023.

(j) 

Rate quoted represents the annualized seven-day yield.

(k) 

Based on 1-Month LIBOR. Represents rates in effect at June 30, 2023.

(l) 

Represents forward-starting interest rate swap contracts with interest receipts and payments commencing on July 15, 2023 and July 20, 2023 (effective dates).

(m) 

The index intends to track the performance of the CDX.NA HY. The two constituent investments held within the index at June 30, 2023 were as follows:

 

Index Constituents   Receive   Frequency   Payment   Frequency   Maturity
Date
 

Total

Weight

  6/30/23
Price
 

6/30/23

Value

Credit Default Swap (CDS) -
MARKIT CDX.NA.HY.40 Index

  5.00% per
anum
  Quarterly   Performance
of CDS
  Semiannually   6/20/28   99.79%   $102.752   $3,036,608
Cash             0.21%     6,390

 

(n) 

The index intends to track the performance of the iTraxx Crossover CDS. The two constituent investments held within the index at June 30, 2023 were as follows:

 

Index Constituents   Receive   Frequency   Payment   Frequency   Maturity
Date
  Total
Weight
  6/30/23
Price
  6/30/23
Value

Credit Default Swap (CDS) -
MARKIT ITRX EUR XOVER Index

  5.00% per
anum
  Quarterly   Performance
of CDS
  Semiannually   6/20/28   99.96%   EUR 400.246   $3,032,060
Cash             0.04%     1,217

 

See accompanying notes to financial statements.

 

22


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2023 (Unaudited)

 

Country Summary    % of Managed
Assets
 

United States

     47.9  

United Kingdom

     13.1  

Canada

     9.7  

France

     7.6  

Netherlands

     3.6  

Spain

     2.7  

Switzerland

     2.7  

Germany

     2.1  

Australia

     1.9  

Italy

     1.9  

Ireland

     1.0  

Denmark

     0.6  

Finland

     0.5  

Other (includes short-term investments)

     4.7  
  

 

 

 
     100.0  
  

 

 

 

 

See accompanying notes to financial statements.

 

23


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

STATEMENT OF ASSETS AND LIABILITIES

June 30, 2023 (Unaudited)

 

ASSETS:

 

Investments in securities, at value (Identified cost—$386,909,810)

   $ 354,186,186  

Cash

     37,104  

Cash collateral pledged for interest rate swap contracts

     2,699,549  

Receivable for:

  

Dividends and interest

     3,965,544  

Investment securities sold

     1,384,789  

Variation margin on interest rate swap contracts

     17,182  

Total return swap contracts, at value

     37,913  

Unrealized appreciation on forward foreign currency exchange contracts

     13,945  

Other assets

     27,506  
  

 

 

 

Total Assets

     362,369,718  
  

 

 

 

LIABILITIES:

 

Unrealized depreciation on forward foreign currency exchange contracts

     525,992  

Due to custodian, foreign currency (Identified cost—$313,367)

     311,923  

Payable for:

  

Credit agreement

     129,000,000  

Interest expense

     630,129  

Investment securities purchased

     405,518  

Investment management fees

     206,364  

Dividends and distributions declared

     32,958  

Administration fees

     17,688  

Directors’ fees

     197  

Other liabilities

     173,779  
  

 

 

 

Total Liabilities

     131,304,548  
  

 

 

 

NET ASSETS

   $ 231,065,170  
  

 

 

 

NET ASSETS consist of:

 

Paid-in capital

   $ 287,302,694  

Total distributable earnings/(accumulated loss)

     (56,237,524
  

 

 

 
   $ 231,065,170  
  

 

 

 

NET ASSET VALUE PER SHARE:

 

($231,065,170 ÷ 12,026,622 shares outstanding)

   $ 19.21  
  

 

 

 

MARKET PRICE PER SHARE

   $ 18.16  
  

 

 

 

MARKET PRICE PREMIUM (DISCOUNT) TO NET ASSET VALUE PER SHARE

     (5.47 )% 
  

 

 

 

 

See accompanying notes to financial statements.

 

24


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2023 (Unaudited)

 

Investment Income:

 

Interest income

   $ 9,289,167  

Dividend income (net of $7,990 of foreign withholding tax)

     2,096,415  
  

 

 

 

Total Investment Income

     11,385,582  
  

 

 

 

Expenses:

 

Interest expense

     3,584,121  

Investment management fees

     1,282,143  

Administration fees

     143,532  

Shareholder reporting expenses

     99,477  

Professional fees

     52,547  

Transfer agent fees and expenses

     9,969  

Custodian fees and expenses

     6,763  

Directors’ fees and expenses

     5,266  

Miscellaneous

     10,076  
  

 

 

 

Total Expenses

     5,193,894  
  

 

 

 

Net Investment Income (Loss)

     6,191,688  
  

 

 

 

Net Realized and Unrealized Gain (Loss):

 

Net realized gain (loss) on:

 

Investments in securities

     (18,295,512

Interest rate swap contracts

     2,073,802  

Total return swap contracts

     (58,757

Forward foreign currency exchange contracts

     (176,221

Foreign currency transactions

     41,833  
  

 

 

 

Net realized gain (loss)

     (16,414,855
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

 

Investments in securities

     4,939,673  

Interest rate swap contracts

     (126,909

Total return swap contracts

     37,913  

Forward foreign currency exchange contracts

     (126,203

Foreign currency translations

     (3,607
  

 

 

 

Net change in unrealized appreciation (depreciation)

     4,720,867  
  

 

 

 

Net Realized and Unrealized Gain (Loss)

     (11,693,988
  

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

   $ (5,502,300
  

 

 

 

 

See accompanying notes to financial statements.

 

25


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

STATEMENT OF CHANGES IN NET ASSETS (Unaudited)

 

     For the
Six Months Ended
June 30, 2023
       For the
Year Ended
December 31, 2022
 

Change in Net Assets:

       

From Operations:

       

Net investment income (loss)

   $ 6,191,688        $ 15,171,396  

Net realized gain (loss)

     (16,414,855        (13,118,248

Net change in unrealized appreciation (depreciation)

     4,720,867          (48,856,874
  

 

 

      

 

 

 

Net increase (decrease) in net assets resulting from operations

     (5,502,300        (46,803,726
  

 

 

      

 

 

 

Distributions to shareholders

     (9,741,564        (18,916,364

Tax return of capital to shareholders

              (566,783
  

 

 

      

 

 

 

Total distributions

     (9,741,564        (19,483,147
  

 

 

      

 

 

 

Capital Stock Transactions:

       

Increase (decrease) in net assets from Fund share transactions

              76,848  
  

 

 

      

 

 

 

Total increase (decrease) in net assets

     (15,243,864        (66,210,025

Net Assets:

       

Beginning of period

     246,309,034          312,519,059  
  

 

 

      

 

 

 

End of period

   $ 231,065,170        $ 246,309,034  
  

 

 

      

 

 

 

 

See accompanying notes to financial statements.

 

26


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2023 (Unaudited)

 

Increase (Decrease) in Cash:

 

Cash Flows from Operating Activities:

 

Net increase (decrease) in net assets resulting from operations

   $ (5,502,300

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:

  

Purchases of long-term investments

     (103,709,637

Proceeds from sales and maturities of long-term investments

     107,432,621  

Net purchases, sales and maturities of short-term investments

     (3,596,246

Net amortization of premium on investments in securities

     422,813  

Net decrease in dividends and interest receivable and other assets

     730,632  

Net increase in interest expense payable, accrued expenses and other liabilities

     10,541  

Net decrease in payable for variation margin on interest rate swap contracts

     (23,710

Net change in unrealized appreciation on investments in securities

     (4,939,673

Net change in unrealized depreciation on forward foreign currency exchange contracts

     126,203  

Net change in unrealized appreciation on total return swap contracts

     (37,913

Net realized loss on investments in securities

     18,295,512  
  

 

 

 

Cash provided by operating activities

     9,208,843  
  

 

 

 

Cash Flows from Financing Activities:

 

Dividends and distributions paid

     (9,743,834

Due to custodian, foreign currency

     311,923  
  

 

 

 

Cash used for financing activities

     (9,431,911
  

 

 

 

Increase (decrease) in cash and restricted cash

     (223,068

Cash and restricted cash at beginning of period (including foreign currency)

     2,959,721  
  

 

 

 

Cash and restricted cash at end of period

   $ 2,736,653  
  

 

 

 

Supplemental Disclosure of Cash Flow Information:

For the six months ended June 30, 2023, interest paid was $3,494,430.

 

See accompanying notes to financial statements.

 

27


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

STATEMENT OF CASH FLOWS—(Continued)

For the Six Months Ended June 30, 2023 (Unaudited)

The following table provides a reconciliation of cash and restricted cash reported within the Statement of Assets and Liabilities that sums to the total of such amounts shown on the Statement of Cash Flows.

 

Cash

   $ 37,104  

Restricted cash

     2,699,549  
  

 

 

 

Total cash and restricted cash shown on the Statement of Cash Flows

   $ 2,736,653  
  

 

 

 

Restricted cash consists of cash that has been pledged to cover the Fund’s collateral or margin obligations under derivative contracts. It is reported on the Statement of Assets and Liabilities as cash collateral pledged for interest rate swap contracts.

 

See accompanying notes to financial statements.

 

28


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

FINANCIAL HIGHLIGHTS (Unaudited)

The following table includes selected data for a share outstanding throughout each period and other performance information derived from the financial statements. It should be read in conjunction with the financial statements and notes thereto.

 

                                                                                   
     For the Six
Months Ended
June 30, 2023
    For the Year Ended December 31,  

Per Share Operating Data:

  2022     2021     2020     2019     2018  

Net asset value, beginning of period

     $20.48       $25.99       $26.81       $27.33       $23.85       $27.79  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from investment operations:

 

Net investment income (loss)(a)

     0.51       1.26       1.40       1.51       1.48       1.50  

Net realized and unrealized gain (loss)

     (0.97     (5.15     0.21       (0.06     4.06       (3.38
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

     (0.46     (3.89     1.61       1.45       5.54       (1.88
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less dividends and distributions to shareholders from:

            

Net investment income

     (0.81     (1.44     (1.39     (1.43     (1.59     (1.61

Net realized gain

     —         (0.13     (1.04     (0.31     (0.47     (0.38

Tax return of capital

     —         (0.05     —         (0.23     —         (0.07
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total dividends and distributions to shareholders

     (0.81     (1.62     (2.43     (1.97     (2.06     (2.06
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Anti-dilutive effect from the issuance of reinvested shares

     —         —         0.00 (b)      0.00 (b)      0.00 (b)      —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in net asset value

     (1.27     (5.51     (0.82     (0.52     3.48       (3.94
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

     $19.21       $20.48       $25.99       $26.81       $27.33       $23.85  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Market value, end of period

     $18.16       $18.72       $26.80       $28.10       $31.52       $23.77  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                                                  

Total net asset value return(c)

     –2.13 %(d)      –14.89     5.96 %     6.03     23.59     –7.02
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total market value return(c)

     1.22 %(d)      –24.56     4.24     –3.64     43.01     –8.81
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                                                  

 

See accompanying notes to financial statements.

 

29


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

FINANCIAL HIGHLIGHTS (Unaudited)—(Continued)

 

                                                                                   
     For the Six
Months Ended
June 30, 2023
    For the Year Ended December 31,  

Ratios/Supplemental Data:

  2022     2021     2020     2019     2018  

Net assets, end of period (in millions)

     $231.1       $246.3       $312.5       $322.2       $328.2       $286.3  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to average daily net assets:

 

Expenses

     4.36 %(e)      2.54     1.59     1.80     2.48     2.40
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Expenses (excluding interest expense)

     1.35 %(e)      1.30     1.22     1.23     1.21     1.22
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income (loss)

     5.19 %(e)      5.65     5.22     6.02     5.69     5.74
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of expenses to average daily managed assets(f)

     2.84 %(e)      1.72     1.13     1.26     1.75     1.70
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate

     29 %(d)      59     57     65     67     56
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Credit Agreement

            

Asset coverage ratio for credit agreement

     279     291     342     350     354     322
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Asset coverage per $1,000 for credit agreement

     $2,791       $2,909       $3,423       $3,498       $3,544       $3,219  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Amount of loan outstanding (in millions)

     $129.0       $129.0       $129.0       $129.0       $129.0       $129.0  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

(a)

Calculation based on average shares outstanding.

(b)

Amount is less than $0.005.

(c)

Total net asset value return measures the change in net asset value per share over the year indicated. Total market value return is computed based upon the Fund’s market price per share and excludes the effects of brokerage commissions. Dividends and distributions are assumed, for purposes of these calculations, to be reinvested at prices obtained under the Fund’s dividend reinvestment plan.

(d)

Not annualized.

(e)

Annualized.

(f)

Average daily managed assets represent net assets plus the outstanding balance of the credit agreement.

 

See accompanying notes to financial statements.

 

30


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1. Organization and Significant Accounting Policies

Cohen & Steers Select Preferred and Income Fund, Inc. (the Fund) was incorporated under the laws of the State of Maryland on August 16, 2010 and is registered under the Investment Company Act of 1940 (the 1940 Act) as a diversified, closed-end management investment company. The Fund’s primary investment objective is high current income. The Fund’s secondary investment objective is capital appreciation.

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The Fund is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 946—Investment Companies. The accounting policies of the Fund are in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

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. 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. Forward foreign currency exchange contracts are valued daily at the prevailing forward exchange rate. Centrally cleared interest rate swaps are valued at the price determined by the relevant exchange or clearinghouse.

Securities not listed on the NYSE but listed on other domestic or foreign securities exchanges (including NASDAQ) 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 over-the-counter (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 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. The pricing services or

 

31


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

 

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 Board of Directors has designated the investment manager as the Fund’s “Valuation Designee” under Rule 2a-5 under the 1940 Act. 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.

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.

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

 

32


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

 

   

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.

The following is a summary of the inputs used as of June 30, 2023 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  

Preferred Securities— Exchange-Traded

   $ 48,198,334      $     $                 —      $ 48,198,334  

Preferred Securities— Over-the-Counter

            297,621,683              297,621,683  

Corporate Bonds

            840,837              840,837  

Short-Term Investments

            7,525,332              7,525,332  
  

 

 

    

 

 

   

 

 

    

 

 

 

Total Investments in Securities(a)

   $ 48,198,334      $ 305,987,852     $      $ 354,186,186  
  

 

 

    

 

 

   

 

 

    

 

 

 

Interest Rate Swap Contracts

   $      $ 11,575,085     $      $ 11,575,085  

Total Return Swap Contracts

            37,913              37,913  

Forward Foreign Currency Exchange Contracts

            13,945              13,945  
  

 

 

    

 

 

   

 

 

    

 

 

 

Total Derivative Assets(a)

   $      $ 11,626,943     $      $ 11,626,943  
  

 

 

    

 

 

   

 

 

    

 

 

 

Forward Foreign Currency Exchange Contracts

   $      $ (525,992   $      $ (525,992
  

 

 

    

 

 

   

 

 

    

 

 

 

Total Derivative Liabilities(a)

   $      $ (525,992   $      $ (525,992
  

 

 

    

 

 

   

 

 

    

 

 

 

 

(a)

Portfolio holdings are disclosed individually on the Schedule of Investments.

Security Transactions and Investment Income: Security transactions are recorded on trade date. Realized gains and losses on investments sold are recorded on the basis of identified cost. Interest income, which includes the amortization of premiums and accretion of discounts, is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date, except for certain dividends on foreign securities, which are recorded as soon as the Fund is informed after the ex-dividend date.

 

33


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

 

Distributions from real estate investment trusts (REITs) are recorded as ordinary income, net realized capital gains or return of capital based on information reported by the REITs and management’s estimates of such amounts based on historical information. These estimates are adjusted when the actual source of distributions is disclosed by the REITs and actual amounts may differ from the estimated amounts.

Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollars based upon prevailing exchange rates on the respective dates of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

Net realized foreign currency transaction gains or losses arise from sales of foreign currencies, (excluding gains and losses on forward foreign currency exchange contracts, which are presented separately, if any) currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency translation gains and losses arise from changes in the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates. Pursuant to U.S. federal income tax regulations, certain foreign currency gains/losses included in realized and unrealized gains/losses are included in or are a reduction of ordinary income for federal income tax purposes.

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 Statement of Assets and Liabilities. 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.

 

34


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

 

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 on the Statement of Assets and Liabilities 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 investment. 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.

At June 30, 2023, the Fund did not have any option contracts outstanding.

Over-the-Counter Total Return Swap Contracts: In a total return swap, one party receives a periodic payment equal to the total return of a specified security, basket of securities, index, or other reference asset for a specified period of time. In return, the other party receives a fixed or variable stream of payments, typically based upon short-term interest rates, possibly plus or minus an agreed upon spread. During the term of the outstanding swap agreement, changes in the value of the swap are recorded as unrealized gains and losses. Periodic payments received or made are recorded as realized gains or losses. The Fund bears the risk of loss in the event of nonperformance by the swap counterparty. Risks may also arise from unanticipated movements in the value of exchange rates, interest rates, securities, index, or other reference asset.

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).

 

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COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

 

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 Schedule of Investments and cash deposited is recorded on the Statement of Assets and Liabilities as cash collateral pledged for interest rate swap contracts. The daily change in valuation of centrally cleared swaps is recorded as a receivable or payable for variation margin on interest rate swap contracts in the Statement of Assets and Liabilities. Any upfront payments paid or received upon entering into a swap agreement would be recorded as assets or liabilities, respectively, in the Statement of Assets and Liabilities, and amortized or accreted over the life of the swap and recorded as realized gain (loss) in the Statement of Operations. Payments received from or paid to the counterparty during the term of the swap agreement, or at termination, are recorded as realized gain (loss) in the Statement of Operations.

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 Statement of Assets and Liabilities. 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.

Dividends and Distributions to Shareholders: Dividends from net investment income and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from GAAP. Dividends from net investment income, if any, are typically declared quarterly and paid monthly. Net realized capital gains, unless offset by any available capital loss carryforward, are typically distributed to shareholders at least annually. Dividends and distributions to shareholders are recorded on the ex-dividend date and are automatically reinvested in full and fractional shares of the Fund in accordance with the Fund’s Reinvestment Plan, unless the shareholder has elected to have them paid in cash.

In December 2016, the Fund implemented a managed distribution policy (the Plan) in accordance with exemptive relief issued by the U.S. Securities and Exchange Commission (SEC). At the June 13, 2023 meeting, the Board approved the termination of the Plan and adopted a new policy, effective July 1, 2023, to make regular monthly distributions at a level rate (the Policy). The Fund expects that these distributions will continue to be declared and announced on a quarterly basis. As a result of the Policy, the Fund may pay distributions in excess of its investment company taxable income and realized gains. In order to make these distributions, the Fund may have to sell portfolio securities at a less opportune time, which could have an adverse effect on the market price of the Fund’s shares. The Board may amend or terminate the Policy, or re-adopt a managed distribution plan, at any time without prior notice to shareholders.

Dividends from net investment income are subject to recharacterization for tax purposes. Based upon the results of operations for the six months ended June 30, 2023, the investment manager considers it likely that a portion of the dividends will be reclassified to distributions from tax return of capital upon the final determination of the Fund’s taxable income after December 31, 2023, the Fund’s fiscal year end.

 

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COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

 

Distributions Subsequent to June 30, 2023: The following distributions have been declared by the Fund’s Board of Directors and are payable subsequent to the period end of this report.

 

Ex-Date   Record Date   Payable Date   Amount
7/11/23   7/12/23   7/31/23   $0.126
8/15/23   8/16/23   8/31/23   $0.126
9/12/23   9/13/23   9/29/23   $0.126

Income Taxes: It is the policy of the Fund to continue to qualify as a regulated investment company (RIC), if such qualification is in the best interest of the shareholders, by complying with the requirements of Subchapter M of the Internal Revenue Code applicable to RICs, and by distributing substantially all of its taxable earnings to its shareholders. Also, in order to avoid the payment of any federal excise taxes, the Fund will distribute substantially all of its net investment income and net realized gains on a calendar year basis. Accordingly, no provision for federal income or excise tax is necessary. Dividend and interest income from holdings in non-U.S. securities are recorded net of non-U.S. taxes paid. Management has analyzed the Fund’s tax positions taken on federal and applicable state income tax returns as well as its tax positions in non-U.S. jurisdictions in which it trades for all open tax years and has concluded that as of June 30, 2023, no additional provisions for income tax are required in the Fund’s financial statements. The Fund’s tax positions for the tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service, state departments of revenue and by foreign tax authorities.

Note 2. Investment Management Fees, Administration Fees and Other Transactions with Affiliates

Investment Management Fees: Cohen & Steers Capital Management, Inc. serves as the Fund’s investment manager pursuant to an investment management agreement (the investment management agreement). Under the terms of the investment management agreement, the investment manager provides the Fund with day-to-day investment decisions and generally manages the Fund’s investments in accordance with the stated policies of the Fund, subject to the supervision of the Board of Directors.

For the services provided to the Fund, the investment manager receives a fee, accrued daily and paid monthly, at the annual rate of 0.70% of the average daily managed assets of the Fund. Managed assets are equal to the net assets plus the amount of any borrowings used for leverage outstanding.

Administration Fees: The Fund has entered into an administration agreement with the investment manager under which the investment manager performs certain administrative functions for the Fund and receives a fee, accrued daily and paid monthly, at the annual rate of 0.06% of the average daily managed assets of the Fund. For the six months ended June 30, 2023, the Fund incurred $109,898 in fees under this administration agreement. Additionally, the Fund pays State Street Bank and Trust Company as co-administrator under a fund accounting and administration agreement.

Directors’ and Officers’ Fees: Certain directors and officers of the Fund are also directors, officers and/or employees of the investment manager. The Fund does not pay compensation to directors and officers affiliated with the investment manager except for the Chief Compliance Officer, who received compensation from the investment manager, which was reimbursed by the Fund, in the amount of $1,284 for the six months ended June 30, 2023.

 

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COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

 

Note 3. Purchases and Sales of Securities

Purchases and sales of securities, excluding short-term investments, for the six months ended June 30, 2023, totaled $103,826,235 and $108,238,101, respectively.

Note 4. Derivative Investments

The following tables present the value of derivatives held at June 30, 2023 and the effect of derivatives held during the six months ended June 30, 2023, along with the respective location in the financial statements.

Statement of Assets and Liabilities

 

    

Assets

   

Liabilities

 

Derivatives

  

Location

  Fair Value    

Location

  Fair Value  
Interest Rate Risk:         

 

Interest Rate Swap Contracts(a)

  

Receivable for variation
margin on interest rate
swap contracts

  $ 11,575,085 (b)      $         —  

Credit Risk:

        

Total Return Swap Contracts— Over-the-Counter

  

Total return swap

contracts, at value

    37,913          

Foreign Currency

Exchange Risk:

        

Forward Foreign Currency Exchange Contracts(c)

   Unrealized appreciation     13,945     Unrealized depreciation     525,992  

 

(a) 

Not subject to a master netting agreement or another similar arrangement.

(b) 

Amount represents the cumulative net appreciation on interest rate swap contracts as reported on the Schedule of Investments. The Statement of Assets and Liabilities only reflects the current day variation margin receivable from the broker.

(c) 

Forward foreign currency exchange contracts executed with Brown Brothers Harriman are not subject to a master netting agreement or another similar arrangement.

 

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COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

 

Statement of Operations

 

Derivatives

  

Location

   Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
 
Foreign Currency Exchange Risk:        

Forward Foreign Currency Exchange Contracts

   Net Realized and Unrealized Gain (Loss)    $ (176,221   $ (126,203

Interest Rate Risk:

       

Interest Rate Swap Contracts

   Net Realized and Unrealized Gain (Loss)      2,073,802       (126,909

Equity Risk:

       

Purchased Option Contracts(a)

   Net Realized and Unrealized Gain (Loss)      (93,510      

Credit Risk:

       

Total Return Swap Contracts

   Net Realized and Unrealized Gain (Loss)      (58,757     37,913  

 

(a)

Purchased option contracts are included in net realized gain (loss) and change in unrealized appreciation (depreciation) on investments in securities.

At June 30, 2023, the Fund’s derivative assets and liabilities (by type), which are subject to a master netting agreement, are as follows:

 

Derivative Financial Instruments

   Assets        Liabilities  

Credit Risk:

       

Total Return Swap Contracts

   $ 37,913        $         —  

The following table presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under a master netting agreement and net of the related collateral received and pledged by the Fund, if any, as of June 30, 2023:

 

Counterparty

   Gross Amount
of Assets
Presented
in the Statement
of Assets and
Liabilities
       Financial
Instruments
and Derivative
Available
for Offset
       Collateral
Received(a)
       Net Amount
of Derivative
Assets(b)
 

BNP Paribas

   $ 37,913        $         —        $         —        $ 37,913  

 

(a) 

Collateral received or pledged is limited to the net derivative asset or net derivative liability amounts. Actual collateral amounts received or pledged may be higher than amounts above.

(b) 

Net amount represents the net receivable from the counterparty or net payable due to the counterparty in the event of default.

 

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COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

 

The following summarizes the volume of the Fund’s option contracts, total return swap contracts, interest rate swap contracts and forward foreign currency exchange contracts activity for the six months ended June 30, 2023.

 

     Purchased
Option
Contracts(a)(b)
       Total Return
Swap
Contracts(a)
       Interest Rate
Swap
Contracts
       Forward
Foreign Currency
Exchange Contracts
 

Average Notional Amount

   $ 3,211,173        $ 3,967,022        $ 109,000,000        $ 20,989,390  

 

(a) 

Average notional amounts represent the average for all months in which the Fund had option contracts and total return swap contracts outstanding. For purchased option contracts, this represents the period March 24, 2023 through March 30, 2023 and for total return swap contracts, this represents the period April 28, 2023 through June 30, 2023.

(b)

Notional amount is calculated using the number of contracts multiplied by notional contract size multiplied by the underlying price.

Note 5. Income Tax Information

As of June 30, 2023, the federal tax cost and net unrealized appreciation (depreciation) in value of investments held were as follows:

 

Cost of investments in securities for federal income tax purposes

  $ 386,909,810  
 

 

 

 

Gross unrealized appreciation on investments

  $ 13,882,318  

Gross unrealized depreciation on investments

    (35,504,991
 

 

 

 

Net unrealized appreciation (depreciation) on investments

  $ (21,622,673
 

 

 

 

As of December 31, 2022, the Fund has a net capital loss carryforward of $14,922,290 which may be used to offset future capital gains. The loss is comprised of a short-term capital loss carryforward of $8,223,965 and a long-term capital loss carryforward of $6,698,325 which, under current federal income tax rules, may offset capital gains recognized in any future period.

Note 6. Capital Stock

The Fund is authorized to issue 250 million shares of common stock at a par value of $0.001 per share.

During the six months ended June 30, 2023, the Fund issued no shares of common stock for the reinvestment of dividends. During the year ended December 31, 2022, the Fund issued 2,970 shares of common stock at $76,848 for the reinvestment of dividends.

On December 13, 2022, the Board of Directors approved the continuation of the delegation of its authority to management to effect repurchases, pursuant to management’s discretion and subject to market conditions and investment considerations, of up to 10% of the Fund’s common shares outstanding (Share Repurchase Program) as of January 1, 2023, through December 31, 2023.

 

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COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

 

During the six months ended June 30, 2023 and the year ended December 31, 2022, the Fund did not effect any repurchases.

Note 7. Borrowings

The Fund has entered into a $129,000,000 credit agreement (the credit agreement) with State Street Bank and Trust Company (State Street). The Fund pays a monthly financing charge which is calculated based on the utilized portion of the credit agreement and a Secured Overnight Financing Rate (SOFR)-based rate since June 29, 2022 pursuant to an amendment to the credit agreement. Prior to that, the monthly financing charge was calculated based on a London Interbank Offered Rate (LIBOR)-based rate. The Fund also pays a fee of 0.15% per annum for each day in which the aggregate loans outstanding under the credit agreement total less than 80% of the credit agreement amount of $129,000,000. Prior to June 29, 2022, this fee was charged on any unutilized portion of the credit agreement. The credit agreement has a 360-day evergreen provision whereby State Street may terminate this agreement upon 360 days’ notice, but the Fund may terminate on three business days’ notice to State Street. Securities held by the Fund are subject to a lien, granted to State Street, to the extent of the borrowing outstanding in connection with the Fund’s credit agreement. If the Fund fails to meet certain requirements, or maintain other financial covenants required under the credit agreement, the Fund may be required to repay immediately, in part or in full, the loan balance outstanding under the credit agreement, necessitating the sale of portfolio securities at potentially inopportune times.

As of June 30, 2023, the Fund had outstanding borrowings of $129,000,000 at a current rate of 5.9%. The carrying value of the borrowings approximates fair value. The borrowings are classified as Level 2 within the fair value hierarchy. During the six months ended June 30, 2023, the Fund borrowed an average daily balance of $129,000,000 at a weighted average borrowing cost of 5.6%.

Note 8. Other Risks

Market Price Discount from Net Asset Value Risk: Shares of closed-end investment companies frequently trade at a discount from their NAV. This characteristic is a risk separate and distinct from the risk that NAV could decrease as a result of investment activities. Whether investors will realize gains or losses upon the sale of the shares will depend not upon the Fund’s NAV but entirely upon whether the market price of the shares at the time of sale is above or below the investor’s purchase price for the shares. Because the market price of the shares is determined by factors such as relative supply of and demand for shares in the market, general market and economic conditions, and other factors beyond the control of the Fund, Fund shares may trade at, above or below NAV.

Preferred Securities Risk: Preferred securities are subject to credit risk, which is the risk that a security will decline in price, or the issuer of the security will fail to make dividend, interest or principal payments when due, because the issuer experiences a decline in its financial status. Preferred securities are also subject to interest rate risk and may decline in value because of changes in market interest rates. The Fund may be subject to a greater risk of rising interest rates than would normally be the case in an environment of low interest rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives. In addition, an issuer may be permitted to

 

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COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

 

defer or omit distributions. Preferred securities are also generally subordinated to bonds and other debt instruments in a company’s capital structure. During periods of declining interest rates, an issuer maybe able to exercise an option to redeem (call) its issue at par earlier than scheduled, and the Fund maybe forced to reinvest in lower yielding securities. Certain preferred securities may be substantially less liquid than many other securities, such as common stocks. Generally, preferred security holders have no voting rights with respect to the issuing company unless certain events occur. Certain preferred securities may give the issuers special redemption rights allowing the securities to be redeemed prior to a specified date if certain events occur, such as changes to tax or securities laws.

Contingent Capital Securities Risk: Contingent capital securities (sometimes referred to as “CoCos”) are debt or preferred securities with loss absorption characteristics built into the terms of the security, for example, a mandatory conversion into common stock of the issuer under certain circumstances, such as the issuer’s capital ratio falling below a certain level. Since the common stock of the issuer may not pay a dividend, investors in these instruments could experience a reduced income rate, potentially to zero, and conversion would deepen the subordination of the investor, hence worsening the investor’s standing in a bankruptcy. Some CoCos provide for a reduction in the value or principal amount of the security (potentially to zero) under such circumstances. In March 2023, a Swiss regulator required a write-down of outstanding CoCos to zero notwithstanding the fact that the equity shares continued to exist and have economic value. It is currently unclear whether regulators of issuers in other jurisdictions will take similar actions. Notwithstanding these risks, the Fund intends to continue to invest in CoCos issued by Swiss companies and by companies in other jurisdictions. In addition, most CoCos are considered to be high yield or “junk” securities and are therefore subject to the risks of investing in below investment-grade securities. Finally, CoCo issuers can, at their discretion, suspend dividend distributions on their CoCo securities and are more likely to do so in response to negative economic conditions and/or government regulation. Omitted distributions are typically non-cumulative and will not be paid on a future date. Any omitted distribution may negatively impact the returns or distribution rate of the Fund.

Concentration Risk: Because the Fund invests at least 25% of its managed assets in the financials sector, it will be more susceptible to adverse economic or regulatory occurrences affecting this sector, such as changes in interest rates, loan concentration and competition. In addition, the Fund will also be subject to the risks of investing in the individual industries and securities that comprise the financials sector, including the bank, diversified financials, real estate (including REITs) and insurance industries. To the extent that the Fund focuses its investments in other sectors or industries, such as (but not limited to) energy, industrials, utilities, pipelines, health care and telecommunications, the Fund will be subject to the risks associated with these particular sectors and industries. These sectors and industries may be adversely affected by, among others, changes in government regulation, world events and economic conditions.

Credit and Below Investment Grade Securities Risk: Preferred securities may be rated below investment grade or may be unrated. Below-investment-grade securities, or equivalent unrated securities, which are commonly known as “high-yield bonds” or “junk bonds,” generally involve greater volatility of price and risk of loss of income and principal, and may be more susceptible to real or perceived adverse economic and competitive industry conditions than higher grade securities. It is reasonable to expect that any adverse economic conditions could disrupt the market for lower-rated

 

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COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

 

securities, have an adverse impact on the value of those securities and adversely affect the ability of the issuers of those securities to repay principal and interest on those securities.

Liquidity Risk: Liquidity risk is the risk that particular investments of the Fund may become difficult to sell or purchase. The market for certain investments may become less liquid or illiquid due to adverse changes in the conditions of a particular issuer or due to adverse market or economic conditions. In addition, dealer inventories of certain securities, which provide an indication of the ability of dealers to engage in “market making,” are at, or near, historic lows in relation to market size, which has the potential to increase price volatility in the fixed income markets in which the Fund invests. Federal banking regulations may also cause certain dealers to reduce their inventories of certain securities, which may further decrease the Fund’s ability to buy or sell such securities. As a result of this decreased liquidity, the Fund may have to accept a lower price to sell a security, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative effect on performance. Further, transactions in less liquid or illiquid securities may entail transaction costs that are higher than those for transactions in liquid securities.

Foreign (Non-U.S.) Securities Risk: The Fund directly purchases securities of foreign issuers. Risks of investing in foreign securities include currency risks, future political and economic developments and possible imposition of foreign withholding taxes on income or proceeds payable on the securities. In addition, there may be less publicly available information about a foreign issuer than about a domestic issuer, and foreign issuers may not be subject to the same accounting, auditing and financial recordkeeping standards and requirements as domestic issuers. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than securities of comparable U.S. issuers.

Foreign Currency Risk: Although the Fund will report its NAV and pay dividends in U.S. dollars, foreign securities often are purchased with and make any dividend and interest payments in foreign currencies. Therefore, the Fund’s investments in foreign securities will be subject to foreign currency risk, which means that the Fund’s NAV could decline solely as a result of changes in the exchange rates between foreign currencies and the U.S. dollar. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal, dividends and interest to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. The Fund may, but is not required to, engage in various investments that are designed to hedge the Fund’s foreign currency risks, and such investments are subject to the risks described under “Derivatives and Hedging Transactions Risk” below.

Leverage Risk: The use of leverage is a speculative technique and there are special risks and costs associated with leverage. The NAV of the Fund’s shares may be reduced by the issuance and ongoing costs of leverage. So long as the Fund is able to invest in securities that produce an investment yield that is greater than the total cost of leverage, the leverage strategy will produce higher current net investment income for the shareholders. On the other hand, to the extent that the total cost of leverage exceeds the incremental income gained from employing such leverage, shareholders would realize lower net investment income. In addition to the impact on net income, the use of leverage will have an effect of magnifying capital appreciation or depreciation for shareholders. Specifically, in an up market, leverage will typically generate greater capital appreciation than if the Fund were not employing

 

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COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

 

leverage. Conversely, in down markets, the use of leverage will generally result in greater capital depreciation than if the Fund had been unlevered. To the extent that the Fund is required or elects to reduce its leverage, the Fund may need to liquidate investments, including under adverse economic conditions which may result in capital losses potentially reducing returns to shareholders. The use of leverage also results in the investment management fees payable to the investment manager being higher than if the Fund did not use leverage and can increase operating costs, which may reduce total return. There can be no assurance that a leveraging strategy will be successful during any period in which it is employed.

Derivatives and Hedging Transactions Risk: The Fund’s use of derivatives, including for the purpose of hedging interest rate or foreign currency risks, presents risks different from, and possibly greater than, the risks associated with investing directly in traditional securities. Among the risks presented are counterparty risk, financial leverage risk, liquidity risk, OTC trading risk and tracking risk. The use of derivatives can lead to losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivatives.

Geopolitical Risk: Occurrence of global events similar to those in recent years, such as war (including Russia’s military invasion of Ukraine), terrorist attacks, natural or environmental disasters, country instability, infectious disease epidemics or pandemics, such as that caused by COVID-19, market instability, debt crises and downgrades, embargoes, tariffs, sanctions and other trade barriers and other governmental trade or market control programs, the potential exit of a country from its respective union and related geopolitical events, may result in market volatility and may have long-lasting impacts on U.S. and global economies and financial markets. Supply chain disruptions or significant changes in the supply or prices of commodities or other economic inputs may have material and unexpected effects on both global securities markets and individual countries, regions, sectors, companies or industries. Events occurring in one region of the world may negatively impact industries and regions that are not otherwise directly impacted by the events. Additionally, those events, as well as other changes in foreign and domestic political and economic conditions, could adversely affect individual issuers or related groups of issuers, securities markets, interest rates, secondary trading, credit ratings, inflation, investor sentiment and other factors affecting the value of the Fund’s investments.

Although the long-term economic fallout of COVID-19 is difficult to predict, it has contributed to, and may continue to contribute to, market volatility, inflation and systemic economic weakness. COVID-19 and efforts to contain its spread may also exacerbate other pre-existing political, social, economic, market and financial risks. In addition, the U.S. government and other central banks across Europe, Asia, and elsewhere announced and/or adopted economic relief packages in response to COVID-19. The end of any such program could cause market downturns, disruptions and volatility, particularly if markets view the ending as premature. The U.S. federal government ended the COVID-19 public health emergency declaration on May 11, 2023; however, the effects of the COVID-19 pandemic are expected to continue and the risk that new variants of COVID-19 may emerge remains. Therefore the economic outlook, particularly for certain industries and businesses, remains inherently uncertain.

On January 31, 2020, the United Kingdom (UK) withdrew from the European Union (EU) (referred to as Brexit), commencing a transition period that ended on December 31, 2020. The EU-UK Trade and Cooperation Agreement, a bilateral trade and cooperation deal governing the future relationship

 

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COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

 

between the UK and the EU (TCA), provisionally went into effect on January 1, 2021, and entered into force officially on May 1, 2021, but critical aspects of the relationship remain unresolved and subject to further negotiation and agreement. Brexit has resulted in volatility in European and global markets and could have negative long-term impacts on financial markets in the UK and throughout Europe. There is still considerable uncertainty relating to the potential consequences of the exit, how the negotiations for new trade agreements will be conducted, and whether the UK’s exit will increase the likelihood of other countries also departing the EU. During this period of uncertainty, the negative impact on the UK, European and broader global economies, could be significant, potentially resulting in increased market volatility and illiquidity, political, economic, and legal uncertainty, and lower economic growth for companies that rely significantly on Europe for their business activities and revenues.

On February 24, 2022, Russia launched a large-scale invasion of Ukraine significantly amplifying already existing geopolitical tensions. The United States and many other countries have instituted various economic sanctions against Russia, Russian individuals and entities and Belarus. The extent and duration of the military action, sanctions imposed and other punitive actions taken (including any Russian retaliatory responses to such sanctions and actions), and resulting disruptions in Europe and globally cannot be predicted, but could be significant and have a severe adverse effect on the global economy, securities markets and commodities markets globally, including through global supply chain disruptions, increased inflationary pressures and reduced economic activity. To the extent the Fund has exposure to the energy sector, the Fund may be especially susceptible to these risks. Furthermore, in March 2023, the shut-down of certain financial institutions raised economic concerns over disruption in the U.S. banking system. There can be no certainty that the actions taken by the U.S. government to strengthen public confidence in the U.S. banking system will be effective in mitigating the effects of financial institution failures on the economy and restoring public confidence in the U.S. banking system. These disruptions may also make it difficult to value the Fund’s portfolio investments and cause certain of the Fund’s investments to become illiquid. The strengthening or weakening of the U.S. dollar relative to other currencies may, among other things, adversely affect the Fund’s investments denominated in non-U.S. dollar currencies. It is difficult to predict when similar events affecting the U.S. or global financial markets may occur, the effects that such events may have, and the duration of those effects.

Regulatory Risk: The U.S. government has proposed and adopted multiple regulations that could have a long-lasting impact on the Fund and on the mutual fund industry in general. The SEC’s final rules, related requirements and amendments to modernize reporting and disclosure, along with other potential upcoming regulations, could, among other things, restrict the Fund’s ability to engage in transactions, and/or increase overall expenses of the Fund. In addition to Rule 18f-4, which governs the way derivatives are used by registered investment companies, the SEC, Congress, various exchanges and regulatory and self-regulatory authorities, both domestic and foreign, have undertaken reviews of the use of derivatives by registered investment companies, which could affect the nature and extent of instruments used by the Fund. While the full extent of all of these regulations is still unclear, these regulations and actions may adversely affect both the Fund and the instruments in which the Fund invests and its ability to execute its investment strategy. For example, climate change regulation (such as decarbonization legislation, other mandatory controls to reduce emissions of greenhouse gases, or related disclosure requirements) could significantly affect the Fund or its investments by, among other things, increasing compliance costs or underlying companies’ operating costs and capital expenditures.

 

45


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

 

Similarly, regulatory developments in other countries may have an unpredictable and adverse impact on the Fund.

LIBOR Risk: Many financial instruments are tied to the London Interbank Offered Rate, or “LIBOR,” to determine payment obligations, financing terms, hedging strategies, or investment value. LIBOR is the offered rate for short-term Eurodollar deposits between major international banks. The Head of the UK Financial Conduct Authority the (FCA) and LIBOR’s administrator, ICE Benchmark Administration (IBA) ceased publication of most LIBOR settings at the end of 2021 and the IBA ceased publication of a majority of U.S. dollar LIBOR settings after June 30, 2023. In addition, global regulators have announced that, with limited exceptions, no new LIBOR-based contracts should be entered into after 2021. Actions by regulators have resulted in the establishment of alternative reference rates to LIBOR in most major currencies (e.g., the Secured Overnight Financing Rate (SOFR) for U.S. dollar LIBOR and the Sterling Overnight Index Average Rate for GBP LIBOR). Other countries are introducing their own local-currency-denominated alternative reference rates for short-term lending and global consensus on alternative rates is lacking.

In March 2022, the U.S. federal government enacted the Adjustable Interest Rate (LIBOR) Act (the LIBOR Act) to establish a process for replacing LIBOR in certain existing contracts that do not already provide for the use of a clearly defined and practicable replacement benchmark rate as described in the LIBOR Act. Generally, for contracts that do not contain clear and practicable fallback provisions as described in the LIBOR Act, a benchmark replacement recommended by the Federal Reserve Board will effectively replace the U.S. dollar LIBOR benchmark after June 30, 2023. The recommended benchmark replacement will be based on SOFR, which is published by the Federal Reserve Bank of New York, and will include certain spread adjustments and benchmark replacement conforming changes. On December 16, 2022, the Federal Reserve Board adopted a final rule that implements the LIBOR Act. The final rule restates safe harbor protections contained in the LIBOR Act for selection or use of the replacement benchmark rate selected by the Federal Reserve Board. Consistent with the LIBOR Act, the final rule is also intended to ensure that LIBOR contracts adopting a benchmark rate selected by the Federal Reserve Board will not be interrupted or terminated following LIBOR’s replacement.

The transition away from LIBOR may lead to increased volatility and illiquidity in markets that are tied to LIBOR, reduced values of, inaccurate valuations of, and miscalculations of payment amounts for LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and reduced effectiveness of hedging strategies, adversely affecting the Fund’s performance or NAV. In addition, any alternative reference rate may be a less effective substitute resulting in prolonged adverse market conditions for the Fund.

Note 9. Other

In the normal course of business, the Fund enters into contracts that provide general indemnifications. The Fund’s maximum exposure under these arrangements is dependent on claims that may be made against the Fund in the future and, therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote.

 

 

46


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

 

Note 10. New Accounting Pronouncement

In January 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2021-01 (ASU 2021-01), “Reference Rate Reform (Topic 848)”. Additionally, in December 2022, the FASB issued Accounting Standards Update No. 2022-06 (ASU 2022-06), “Reference Rate Reform (Topic 848)”. ASU 2022-06 and ASU 2021-01 are updates to ASU 2020-04, which is in response to concerns about structural risks of interbank offered rates, and particularly the risk of cessation of LIBOR, and the reference rate reform initiatives that regulators have undertaken to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The ASU 2021-01 update clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU 2022-06 update extends the period of time preparers can use the reference rate reform relief guidance by two years. ASU 2022-06 defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The amendments in these updates are effective immediately through December 31, 2024, for all entities. Management does not expect ASU 2021-01 or ASU 2022-06 to have a material impact on the financial statements.

Note 11. Subsequent Events

Management has evaluated events and transactions occurring after June 30, 2023 through the date that the financial statements were issued, and has determined that no additional disclosure in the financial statements is required.

 

47


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

PROXY RESULTS (Unaudited)

Cohen & Steers Select Preferred and Income Fund, Inc. shareholders voted on the following proposals at the annual meeting held on April 26, 2023. The description of each proposal and number of shares voted are as follows:

 

Common Shares    Shares Voted
for
      

Authority

Withheld

 

To elect Directors:

       

Michael G. Clark

     8,882,463          270,545  

Dean A. Junkans

     8,880,335          272,673  

Ramona Rogers-Windsor

     8,889,027          263,981  

 

48


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

(The following pages are unaudited)

REINVESTMENT PLAN

We urge shareholders who want to take advantage of this plan and whose shares are held in ‘Street Name’ to consult your broker as soon as possible to determine if you must change registration into your own name to participate.

OTHER INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 866-227-0757, (ii) on our website at cohenandsteers.com or (iii) on the SEC’s website at http://www.sec.gov. In addition, the Fund’s proxy voting record for the most recent 12-month period ended June 30 is available by August 31 of each year (i) without charge, upon request, by calling 866-227-0757 or (ii) on the SEC’s website at http://www.sec.gov.

Disclosures of the Fund’s complete holdings are required to be made monthly on Form N-PORT, with every third month made available to the public by the SEC 60 days after the end of the Fund’s fiscal quarter. The Fund’s Form N-PORT is available (i) without charge, upon request, by calling 866-227-0757 or (ii) on the SEC’s website at http://www.sec.gov.

Please note that distributions paid by the Fund to shareholders are subject to recharacterization for tax purposes and are taxable up to the amount of the Fund’s investment company taxable income and net realized gains. Distributions in excess of the Fund’s investment company taxable income and net realized gains are a return of capital distributed from the Fund’s assets. To the extent this occurs, the Fund’s shareholders of record will be notified of the estimated amount of capital returned to shareholders for each such distribution and this information will also be available at cohenandsteers.com. The final tax treatment of all distributions is reported to shareholders on their 1099-DIV forms, which are mailed after the close of each calendar year. Distributions of capital decrease the Fund’s total assets and, therefore, could have the effect of increasing the Fund’s expense ratio. In addition, in order to make these distributions, the Fund may have to sell portfolio securities at a less than opportune time.

Notice is hereby given in accordance with Rule 23c-1 under the 1940 Act that the Fund may purchase, from time to time, shares of its common stock in the open market.

 

49


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT

The Board of Directors of the Fund, including a majority of the directors who are not parties to the Fund’s investment management agreement (the Management Agreement), or interested persons of any such party (the Independent Directors), has the responsibility under the Investment Company Act of 1940 to approve the Fund’s Management Agreement for its initial two year term and its continuation annually thereafter at a meeting of the Board of Directors called for the purpose of voting on the approval or continuation. The Management Agreement was discussed at a meeting of the Independent Directors, in their capacity as the Contract Review Committee, held on June 6, 2023 and at meetings of the full Board of Directors held on March 14, 2023 and June 13, 2023. The Independent Directors, in their capacity as the Contract Review Committee, also discussed the Management Agreement in executive session on June 13, 2023. At the meeting of the full Board of Directors on June 13, 2023, the Management Agreement was unanimously continued for a term ending June 30, 2024 by the Fund’s Board of Directors, including the Independent Directors. The Independent Directors were represented by independent counsel who assisted them in their deliberations during the meetings and executive session.

In considering whether to continue the Management Agreement, the Board of Directors reviewed materials provided by an independent data provider, which included, among other items, fee, expense and performance information compared to peer funds (the Peer Funds and, collectively with the Fund, the Peer Group) and performance comparisons to a larger category universe; summary information prepared by the Fund’s investment manager (the Investment Manager); and a memorandum from counsel to the Independent Directors outlining the legal duties of the Board of Directors. The Board of Directors also spoke directly with representatives of the independent data provider and met with investment management personnel. In addition, the Board of Directors considered information provided from time to time by the Investment Manager throughout the year at meetings of the Board of Directors, including presentations by portfolio managers relating to the investment performance of the Fund and the investment strategies used in pursuing the Fund’s objective. The Board of Directors also considered information provided by the Investment Manager in response to a request for information submitted by counsel to the Independent Directors, on behalf of the Independent Directors, as well as information provided by the Investment Advisor in response to a supplemental request. In particular, the Board of Directors considered the following:

(i) The nature, extent and quality of services to be provided by the Investment Manager: The Board of Directors reviewed the services that the Investment Manager provides to the Fund, including, but not limited to, making the day-to-day investment decisions for the Fund, placing orders for the investment and reinvestment of the Fund’s assets, furnishing information to the Board of Directors of the Fund regarding the Fund’s portfolio, providing individuals to serve as Fund officers, managing the Fund’s debt leverage level, and generally managing the Fund’s investments in accordance with the stated policies of the Fund. The Board of Directors also discussed with officers and portfolio managers of the Fund the types of transactions conducted on behalf of the Fund. Additionally, the Board of Directors took into account the services provided by the Investment Manager to its other funds and accounts, including those that have investment objectives and strategies similar to those of the Fund. The Board of Directors also considered the education, background and experience of the Investment Manager’s personnel, particularly noting the potential benefit that the portfolio managers’ work experience and favorable reputation can have on the Fund. The Board of Directors further noted the Investment

 

50


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

Manager’s ability to attract qualified and experienced personnel. The Board of Directors also considered the administrative services provided by the Investment Manager, including compliance and accounting services. After consideration of the above factors, among others, the Board of Directors concluded that the nature, extent and quality of services provided by the Investment Manager are satisfactory and appropriate.

(ii) Investment performance of the Fund and the Investment Manager: The Board of Directors considered the investment performance of the Fund compared to Peer Funds and compared to a relevant benchmark and a relevant linked blended benchmark. The Board of Directors considered that the Fund outperformed the Peer Group medians for the ten-year period, and underperformed for the one-, three- and five-year periods, ended March 31, 2023, ranking three out of six peers, five out of eight peers, seven out of eight peers and seven out of eight peers for each period, respectively. The Board of Directors also noted that the Fund outperformed the relevant benchmark and the relevant linked blended benchmark for the three- and ten-year periods and underperformed for the one- and five-year periods ended March 31, 2023. The Board of Directors engaged in discussions with the Investment Manager regarding the contributors to and detractors from the Fund’s performance during the period, as well as the impact of leverage on the Fund’s performance. The Board of Directors also considered supplemental information provided by the Investment Manager, including a narrative summary of various factors affecting performance and the Investment Manager’s performance in managing similarly managed funds and accounts. The Board of Directors determined that Fund performance, in light of all the considerations noted above, supported the continuation of the Management Agreement.

(iii) Cost of the services to be provided and profits to be realized by the Investment Manager from the relationship with the Fund: The Board of Directors considered the contractual and actual management fees paid by the Fund as well as the Fund’s total expense ratios. As part of its analysis, the Board of Directors gave consideration to the fee and expense analyses provided by the independent data provider. The Board of Directors considered that the Fund’s actual management fees at managed asset levels were lower than the Peer Group median and the actual management fees at common asset level were higher than the Peer Group median, ranking four out of eight peers and six out of eight peers, respectively. The Board of Directors noted that the Fund’s total expense ratios including investment-related expenses at managed asset levels and at common asset levels were both higher than the Peer Group median, ranking eight out of eight peers for each. The Board of Directors also noted that the Fund’s total expense ratio excluding investment-related expenses at managed asset levels was lower than the Peer Group median and at common asset levels was higher than the Peer Group median, ranking three out of eight peers and five out of eight peers, respectively. The Board of Directors considered the impact of leverage levels on the Fund’s fees and expenses at managed and common asset levels. In light of the considerations above, the Board of Directors concluded that the Fund’s current expense structure was satisfactory.

The Board of Directors also reviewed information regarding the profitability to the Investment Manager of its relationship with the Fund. The Board of Directors considered the level of the Investment Manager’s profits and whether the profits were reasonable for the Investment Manager. The Board of Directors took into consideration other benefits to be derived by the Investment Manager in connection with the Management Agreement, noting particularly the research and related services, within the meaning of Section 28(e) of the Securities Exchange Act of 1934, that the Investment Manager receives by allocating the Fund’s brokerage transactions. The Board of Directors further considered that the

 

51


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

Investment Manager continues to reinvest profits back in the business, including upgrading and/or implementing new trading, compliance and accounting systems, and by adding investment personnel to the portfolio management teams. The Board of Directors also considered the administrative services provided by the Investment Manager and the associated administration fee paid to the Investment Manager for such services under the Administration Agreement. The Board of Directors determined that the services received under the Administration Agreement are beneficial to the Fund. The Board of Directors concluded that the profits realized by the Investment Manager from its relationship with the Fund were reasonable and consistent with the Investment Manager’s fiduciary duties.

(iv) The extent to which economies of scale would be realized as the Fund grows and whether fee levels would reflect such economies of scale: The Board of Directors noted that, as a closed-end fund, the Fund would not be expected to have inflows of capital that might produce increasing economies of scale. The Board of Directors determined that, given the Fund’s closed-end structure, there were no significant economies of scale that were not already being shared with shareholders. In considering economies of scale, the Board of Directors also noted, as discussed above in (iii), that the Investment Manager continues to reinvest profits back in the business.

(v) Comparison of services to be rendered and fees to be paid to those under other investment management contracts, such as contracts of the same and other investment advisors or other clients: As discussed above in (iii), the Board of Directors compared the fees paid under the Management Agreement to those under other investment management contracts of other investment advisors managing Peer Funds. The Board of Directors also compared the services rendered and fees paid under the Management Agreement to fees paid, including the ranges of such fees, under the Investment Manager’s other fund management agreements and advisory contracts with institutional and other clients with similar investment mandates, noting that the Investment Manager provides more services to the Fund than it does for institutional or subadvised accounts. The Board of Directors also considered the entrepreneurial risk and financial exposure assumed by the Investment Manager in developing and managing the Fund that the Investment Manager does not have with institutional and other clients and other differences in the management of registered investment companies and institutional accounts. The Board of Directors determined that on a comparative basis the fees under the Management Agreement were reasonable in relation to the services provided.

No single factor was cited as determinative to the decision of the Board of Directors, and each Director may have assigned different weights to the various factors. Rather, after weighing all of the considerations and conclusions discussed above, the Board of Directors, including the Independent Directors, unanimously approved the continuation of the Management Agreement.

 

52


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

Cohen & Steers Privacy Policy

 

   
Facts   What Does Cohen & Steers Do With Your Personal Information?
Why?   Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?  

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

 

• Social Security number and account balances

 

• Transaction history and account transactions

 

• Purchase history and wire transfer instructions

How?   All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Cohen & Steers chooses to share; and whether you can limit this sharing.

 

Reasons we can share your personal information    Does Cohen & Steers
share?
     Can you limit this
sharing?

For our everyday business purposes—

such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or reports to credit bureaus

   Yes      No

For our marketing purposes—

to offer our products and services to you

   Yes      No
For joint marketing with other financial companies—    No      We don’t share

For our affiliates’ everyday business purposes—

information about your transactions and experiences

   No      We don’t share

For our affiliates’ everyday business purposes—

information about your creditworthiness

   No      We don’t share
For our affiliates to market to you—    No      We don’t share
For non-affiliates to market to you—    No      We don’t share
       
     
Questions?     Call 800.330.7348            

 

53


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

Cohen & Steers Privacy Policy—(Continued)

 

   
Who we are    
Who is providing this notice?   Cohen & Steers Capital Management, Inc., Cohen & Steers Asia Limited, Cohen & Steers Japan Limited, Cohen & Steers UK Limited, Cohen & Steers Ireland Limited, Cohen & Steers Singapore Private Limited, Cohen & Steers Securities, LLC, Cohen & Steers Private Funds and Cohen & Steers Open and Closed-End Funds (collectively, Cohen & Steers).
What we do    
How does Cohen & Steers protect my personal information?   To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We restrict access to your information to those employees who need it to perform their jobs, and also require companies that provide services on our behalf to protect your information.
How does Cohen & Steers collect my personal information?  

We collect your personal information, for example, when you:

 

• Open an account or buy securities from us

 

• Provide account information or give us your contact information

 

• Make deposits or withdrawals from your account

 

We also collect your personal information from other companies.

Why can’t I limit all sharing?  

Federal law gives you the right to limit only:

 

• sharing for affiliates’ everyday business purposes—information about your creditworthiness

 

• affiliates from using your information to market to you

 

• sharing for non-affiliates to market to you

 

State law and individual companies may give you additional rights to limit sharing.

Definitions    
Affiliates  

Companies related by common ownership or control. They can be financial and nonfinancial companies.

 

• Cohen & Steers does not share with affiliates.

Non-affiliates  

Companies not related by common ownership or control. They can be financial and nonfinancial companies.

 

• Cohen & Steers does not share with non-affiliates.

Joint marketing  

A formal agreement between non-affiliated financial companies that together market financial products or services to you.

 

• Cohen & Steers does not jointly market.

 

54


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

Cohen & Steers Open-End Mutual Funds

 

COHEN & STEERS REALTY SHARES

 

  Designed for investors seeking total return, investing primarily in U.S. real estate securities

 

  Symbols: CSJAX, CSJCX, CSJIX, CSRSX, CSJRX, CSJZX

COHEN & STEERS REAL ESTATE SECURITIES FUND

 

  Designed for investors seeking total return, investing primarily in U.S. real estate securities

 

  Symbols: CSEIX, CSCIX, CREFX, CSDIX, CIRRX, CSZIX

COHEN & STEERS INSTITUTIONAL REALTY SHARES

 

  Designed for institutional investors seeking total return, investing primarily in U.S. real estate securities

 

  Symbol: CSRIX

COHEN & STEERS GLOBAL REALTY SHARES

 

  Designed for investors seeking total return, investing primarily in global real estate equity securities

 

  Symbols: CSFAX, CSFCX, CSSPX, GRSRX, CSFZX

COHEN & STEERS INTERNATIONAL REALTY FUND

 

  Designed for investors seeking total return, investing primarily in international (non-U.S.) real estate securities

 

  Symbols: IRFAX, IRFCX, IRFIX, IRFRX, IRFZX

COHEN & STEERS REAL ASSETS FUND

 

  Designed for investors seeking total return and the maximization of real returns during inflationary environments by investing primarily in real assets

 

  Symbols: RAPAX, RAPCX, RAPIX, RAPRX, RAPZX

COHEN & STEERS PREFERRED SECURITIES

AND INCOME FUND

 

  Designed for investors seeking total return (high current income and capital appreciation), investing primarily in preferred and debt securities issued by U.S. and non-U.S. companies

 

  Symbols: CPXAX, CPXCX, CPXFX, CPXIX, CPRRX, CPXZX

COHEN & STEERS LOW DURATION PREFERRED

AND INCOME FUND

 

  Designed for investors seeking high current income and capital preservation by investing in low-duration preferred and other income securities issued by U.S. and non-U.S. companies

 

  Symbols: LPXAX, LPXCX, LPXFX, LPXIX, LPXRX, LPXZX

COHEN & STEERS MLP & ENERGY OPPORTUNITY FUND

 

  Designed for investors seeking total return, investing primarily in midstream energy master limited partnership (MLP) units and related stocks

 

  Symbols: MLOAX, MLOCX, MLOIX, MLORX, MLOZX

COHEN & STEERS GLOBAL INFRASTRUCTURE FUND

 

  Designed for investors seeking total return, investing primarily in global infrastructure securities

 

  Symbols: CSUAX, CSUCX, CSUIX, CSURX, CSUZX

COHEN & STEERS ALTERNATIVE INCOME FUND

 

  Designed for investors seeking high current income and capital appreciation, investing in equity, preferred and debt securities, focused on real assets and alternative income strategies

 

  Symbols: DVFAX, DVFCX, DVFIX, DVFRX, DVFZX
 

Distributed by Cohen & Steers Securities, LLC.

 

Please consider the investment objectives, risks, charges and expenses of any Cohen & Steers U.S. registered open-end fund carefully before investing. A summary prospectus and prospectus containing this and other information can be obtained by calling 800-330-7348 or by visiting cohenandsteers.com. Please read the summary prospectus and prospectus carefully before investing.

 

55


COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

OFFICERS AND DIRECTORS

Joseph M. Harvey

Director, Chair and Vice President

Adam M. Derechin

Director

Michael G. Clark

Director

George Grossman

Director

Dean A. Junkans

Director

Gerald J. Maginnis

Director

Jane F. Magpiong

Director

Daphne L. Richards

Director

Ramona Rogers-Windsor

Director

James Giallanza

President and Chief Executive Officer

Albert Laskaj

Treasurer and Chief Financial Officer

Dana A. DeVivo

Secretary and Chief Legal Officer

Stephen Murphy

Chief Compliance Officer

and Vice President

William F. Scapell

Vice President

Elaine Zaharis-Nikas

Vice President

KEY INFORMATION

Investment Manager and Administrator

Cohen & Steers Capital Management, Inc.

280 Park Avenue

New York, NY 10017

(212) 832-3232

Co-administrator and Custodian

State Street Bank and Trust Company

One Congress Street, Suite 1

Boston, MA 02114-2016

Transfer Agent

Computershare

150 Royall Street

Canton, MA 02021

(866) 227-0757

Legal Counsel

Ropes & Gray LLP

1211 Avenue of the Americas

New York, NY 10036

New York Stock Exchange Symbol:    PSF

Website: cohenandsteers.com

This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Fund shares. Performance data quoted represent past performance. Past performance is no guarantee of future results and your investment may be worth more or less at the time you sell your shares.

 

 

56


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Semiannual Report June 30, 2023

PSFSAR

 

 

 


Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments.

Included in Item 1 above.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

 

(a)

Not Applicable.

 

(b)

The registrant has not had any change in the portfolio managers identified in response to paragraph (a)(1) of this item in the registrant’s most recent annual report on Form N-CSR.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

None.

Item 10. Submission of Matters to a Vote of Security Holders.

None.

 

 

 


Item 11. Controls and Procedures.

 

(a)

The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

 

(b)

There were no changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

 

(a)

The Fund did not engage in any securities lending activity during the fiscal year ended December 31, 2022.

 

(b)

The Fund did not engage in any securities lending activity and did not engage a securities lending agent during the fiscal year ended December 31, 2022.

Item 13. Exhibits.

(a)(1) Not applicable.

(a) (2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(a)(3) Not applicable.

(a)(4) Not applicable.

(b) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b)  under the Investment Company Act of 1940.

(c) Registrant’s notices to shareholders pursuant to Registrant’s exemptive order granting an exemption from Section 19(b) of the 1940 Act and Rule 19b-1 thereunder regarding distributions pursuant to the Registrant’s Managed Distribution Plan.

 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

 

  By:   /s/ James Giallanza
   

Name:   James Giallanza

Title:    Principal Executive Officer

         (President and Chief Executive Officer)

  Date:   September 1, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

  By:   /s/ James Giallanza
   

Name:   James Giallanza

Title:    Principal Executive Officer

         (President and Chief Executive Officer)

  By:   /s/ Albert Laskaj
   

Name:   Albert Laskaj

Title:    Principal Financial Officer

         (Treasurer and Chief Financial Officer)

  Date:   September 1, 2023

 

 

 

EX-99.CERT

EXHIBIT 13 (a)(2)

RULE 30a-2(a) CERTIFICATIONS

I, James Giallanza, certify that:

 

1.

I have reviewed this report on Form N-CSR of Cohen & Steers Select Preferred and Income Fund, Inc.;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c)

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

 

 


  (d)

disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

        Date:

 September 1, 2023

 

/s/ James Giallanza
James Giallanza
Principal Executive Officer
(President and Chief Executive Officer)

 

 

 


EX-99.CERT

EXHIBIT 13 (a)(2)

RULE 30a-2(a) CERTIFICATIONS

I, Albert Laskaj, certify that:

 

1.

I have reviewed this report on Form N-CSR of Cohen & Steers Select Preferred and Income Fund, Inc.;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to stat