CNS-Responsible-Investing 2024 - Flipbook - Page 20
RESPONSIBLE INVESTING
Preferred Securities
Strategy Overview
Our ESG Integration Approach
Cohen & Steers is one of the largest and most
experienced managers in the preferred securities
market, with a long-standing track record of
delivering attractive income and managing through
various interest rate and credit cycles. Our highly
tenured team combines deep market expertise with
proprietary tax analysis to identify securities that
optimize income potential, including those eligible for
Quali昀椀ed Dividend Income (QDI) treatment.
Across our Preferred Securities platform, we assess and
integrate ESG factors through a structured, researchdriven process designed to enhance risk management
and support long-term returns. Analysts identify key
ESG issues for each industry using third-party data
and internal insights, assigning pillar weights for
environmental, social, and governance factors based on
materiality.
We o昀昀er access to a large, global over-the-counter
market composed mostly of high-quality issuers and
historically stable companies. Preferred securities
provide higher yields than similarly rated bonds
and o昀昀er potential tax advantages, making them a
compelling income solution.
Our investment process is supported by global reach
and local insight, with analysts and traders located in
key 昀椀nancial centers including New York, London, and
Hong Kong. This presence enables timely, informed
decision-making and ensures our portfolios re昀氀ect realtime market conditions.
Through disciplined research and active management,
we aim to deliver consistent income, reduce volatility,
and support stronger long-term portfolio outcomes.
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COHEN & STEERS | RESPONSIBLE INVESTING
We assign ESG scores to each company in the investable
universe, applying a consistent internal scoring scale
informed by company disclosures, engagements,
and external sources such as MSCI, Bloomberg, and
rating agencies. These scores re昀氀ect both absolute
performance and peer-relative positioning and are
regularly updated based on new information.
ESG scores are directly incorporated into investment
decisions. Scores inform internal issuer reports and
relative valuation assessments and are used to adjust
position sizing or ownership levels. For companies with
extremely weak or strong ESG pro昀椀les, scores may also
impact premium or discount assumptions. These scores
are supported by underlying ESG data, which provides
additional context and helps inform speci昀椀c adjustments
to 昀椀nancial assumptions where relevant.
