COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS(Continued)
June 30, 2022 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal Amount |
|
|
Value |
|
|
|
|
|
|
|
|
|
|
|
UTILITIES |
|
|
3.5% |
|
|
|
|
|
|
|
|
|
ELECTRIC |
|
|
2.8% |
|
|
|
|
|
|
|
|
|
Edison International, 5.00% to 12/15/26, Series Ba,b,* |
|
|
$ |
3,367,000 |
|
|
$ |
2,687,305 |
|
Edison International, 5.375% to 3/15/26, Series Aa,b,* |
|
|
|
3,153,000 |
|
|
|
2,569,695 |
|
Sempra Energy, 4.125% to 1/1/27, due 4/1/52b,* |
|
|
|
4,240,000 |
|
|
|
3,408,814 |
|
Sempra Energy, 4.875% to 10/15/25a,b |
|
|
|
8,700,000 |
|
|
|
8,025,583 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,691,397 |
|
|
|
|
|
|
|
ELECTRICFOREIGN |
|
|
0.7% |
|
|
|
|
|
|
|
|
|
Algonquin Power & Utilities Corp., 4.75% to 1/18/27, due
1/18/82 (Canada)b,* |
|
|
|
5,322,000 |
|
|
|
4,440,258 |
|
|
|
|
|
|
|
TOTAL UTILITIES |
|
|
|
|
|
|
|
21,131,655 |
|
|
|
|
|
|
|
TOTAL PREFERRED
SECURITIESCAPITAL SECURITIES (Identified cost$884,985,068) |
|
|
|
|
|
|
|
802,618,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
|
|
SHORT-TERM INVESTMENTS |
|
|
3.7% |
|
|
|
|
|
|
|
|
|
MONEY MARKET FUNDS |
|
|
|
|
|
|
|
|
|
|
|
|
State Street Institutional Treasury Money Market Fund, Premier Class,
1.04%g |
|
|
|
22,232,128 |
|
|
|
22,232,128 |
|
|
|
|
|
|
|
TOTAL SHORT-TERM
INVESTMENTS (Identified cost$22,232,128) |
|
|
|
|
|
|
|
22,232,128 |
|
|
|
|
|
|
|
PURCHASED OPTION CONTRACTS (Premiums
paid$650,745) |
|
|
0.4% |
|
|
|
|
|
|
|
2,597,689 |
|
|
|
|
|
|
|
TOTAL INVESTMENTS IN
SECURITIES (Identified cost$992,125,123) |
|
|
148.6% |
|
|
|
|
|
|
|
906,933,198 |
|
WRITTEN OPTION CONTRACTS (Premiums
received$351,460) |
|
|
(0.3) |
|
|
|
|
|
|
|
(1,733,423 |
) |
LIABILITIES IN EXCESS OF
OTHER ASSETS |
|
|
(48.3) |
|
|
|
|
|
|
|
(294,914,896 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS (Equivalent to $20.99 per share based on
29,079,221 shares of common stock outstanding) |
|
|
100.0% |
|
|
|
|
|
|
$ |
610,284,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to
financial statements.
19
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS(Continued)
June 30, 2022 (Unaudited)
Over-the-Counter Option Contracts
Purchased Options
Interest Rate
Swaptions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description |
|
Counterparty |
|
Exercise Rate |
|
|
Expiration Date |
|
|
Notional Amounth |
|
|
Premiums Paid |
|
|
Value |
|
Option to receive
USD-SOFR-OIS Annually, Pay 2.00% Annually, maturing 8/29/32 |
|
Goldman Sachs International |
|
|
2.00 |
% |
|
|
8/25/22 |
|
|
|
$36,233,000 |
|
|
|
$650,745 |
|
|
|
$2,597,689 |
|
|
|
|
Written Options
Interest Rate Swaptions |
|
|
|
|
|
|
|
|
Description |
|
Counterparty |
|
Exercise Rate |
|
|
Expiration Date |
|
|
Notional Amounth |
|
|
Premiums Received |
|
|
Value |
|
Option to pay USD- SOFR-OIS Annually, Receive 2.30% Annually, maturing 8/29/32 |
|
Goldman Sachs International |
|
|
2.30 |
% |
|
|
8/25/22 |
|
|
|
$(36,233,000 |
) |
|
|
$(351,460 |
) |
|
|
$(1,733,423 |
) |
|
|
Centrally Cleared Interest Rate Swap Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notional Amount |
|
|
Fixed Rate Payable |
|
|
Fixed Payment Frequency |
|
Floating Rate Receivable (resets monthly)i |
|
Floating Payment Frequency |
|
|
Maturity Date |
|
Value |
|
|
Upfront Receipts (Payments) |
|
|
Unrealized Appreciation |
|
|
$85,000,000 |
|
|
|
0.548% |
|
|
Monthly |
|
1.324% |
|
|
Monthly |
|
|
9/15/25 |
|
$ |
6,220,588 |
|
|
$ |
|
|
|
$ |
6,220,588 |
|
|
94,000,000 |
|
|
|
1.181 |
|
|
Monthly |
|
1.324 |
|
|
Monthly |
|
|
9/15/26 |
|
|
6,381,174 |
|
|
|
|
|
|
|
6,381,174 |
|
|
90,000,000 |
|
|
|
0.930 |
|
|
Monthly |
|
1.324 |
|
|
Monthly |
|
|
9/15/27 |
|
|
8,507,211 |
|
|
|
|
|
|
|
8,507,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
21,108,973 |
|
|
$ |
|
|
|
$ |
21,108,973 |
|
|
|
|
The total amount of all interest rate swap contracts as presented in the
table above are representative of the volume of activity for this derivative type during the six months ended June 30, 2022.
See accompanying notes to financial statements.
20
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS(Continued)
June 30, 2022 (Unaudited)
Forward Foreign Currency Exchange Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Counterparty |
|
Contracts to Deliver |
|
|
In Exchange For |
|
|
Settlement Date |
|
|
Unrealized Appreciation (Depreciation) |
|
Brown Brothers Harriman |
|
CAD |
|
|
8,060,600 |
|
|
USD |
|
|
6,379,909 |
|
|
|
7/5/22 |
|
|
$ |
117,789 |
|
Brown Brothers Harriman |
|
EUR |
|
|
32,869,296 |
|
|
USD |
|
|
35,325,454 |
|
|
|
7/5/22 |
|
|
|
880,075 |
|
Brown Brothers Harriman |
|
GBP |
|
|
1,565,928 |
|
|
USD |
|
|
1,959,588 |
|
|
|
7/5/22 |
|
|
|
53,384 |
|
Brown Brothers Harriman |
|
GBP |
|
|
5,567,339 |
|
|
USD |
|
|
6,830,735 |
|
|
|
7/5/22 |
|
|
|
53,612 |
|
Brown Brothers Harriman |
|
GBP |
|
|
10,124,547 |
|
|
USD |
|
|
12,777,786 |
|
|
|
7/5/22 |
|
|
|
453,172 |
|
Brown Brothers Harriman |
|
USD |
|
|
583,704 |
|
|
CAD |
|
|
750,703 |
|
|
|
7/5/22 |
|
|
|
(498 |
) |
Brown Brothers Harriman |
|
USD |
|
|
4,699,199 |
|
|
CAD |
|
|
6,061,121 |
|
|
|
7/5/22 |
|
|
|
9,565 |
|
Brown Brothers Harriman |
|
USD |
|
|
960,246 |
|
|
CAD |
|
|
1,248,776 |
|
|
|
7/5/22 |
|
|
|
9,903 |
|
Brown Brothers Harriman |
|
USD |
|
|
1,384,857 |
|
|
EUR |
|
|
1,288,590 |
|
|
|
7/5/22 |
|
|
|
(34,479 |
) |
Brown Brothers Harriman |
|
USD |
|
|
1,464,210 |
|
|
EUR |
|
|
1,390,094 |
|
|
|
7/5/22 |
|
|
|
(7,461 |
) |
Brown Brothers Harriman |
|
USD |
|
|
1,284,908 |
|
|
EUR |
|
|
1,231,380 |
|
|
|
7/5/22 |
|
|
|
5,517 |
|
Brown Brothers Harriman |
|
USD |
|
|
30,278,325 |
|
|
EUR |
|
|
28,959,232 |
|
|
|
7/5/22 |
|
|
|
69,502 |
|
Brown Brothers Harriman |
|
USD |
|
|
587,667 |
|
|
GBP |
|
|
480,751 |
|
|
|
7/5/22 |
|
|
|
(2,449 |
) |
Brown Brothers Harriman |
|
USD |
|
|
2,235,384 |
|
|
GBP |
|
|
1,835,683 |
|
|
|
7/5/22 |
|
|
|
(807 |
) |
Brown Brothers Harriman |
|
USD |
|
|
18,143,766 |
|
|
GBP |
|
|
14,941,380 |
|
|
|
7/5/22 |
|
|
|
44,380 |
|
Brown Brothers Harriman |
|
EUR |
|
|
28,600,596 |
|
|
USD |
|
|
29,955,978 |
|
|
|
8/2/22 |
|
|
|
(71,100 |
) |
Brown Brothers Harriman |
|
GBP |
|
|
15,699,805 |
|
|
USD |
|
|
19,072,123 |
|
|
|
8/2/22 |
|
|
|
(48,453 |
) |
Brown Brothers Harriman |
|
CAD |
|
|
6,078,816 |
|
|
USD |
|
|
4,712,553 |
|
|
|
8/3/22 |
|
|
|
(9,789 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,521,863 |
|
|
|
Glossary of Portfolio Abbreviations
|
|
|
CAD |
|
Canadian Dollar |
CMT |
|
Constant Maturity Treasury |
EMTN |
|
Euro Medium Term Note |
EUR |
|
Euro Currency |
FRN |
|
Floating Rate Note |
GBP |
|
Great British Pound |
LIBOR |
|
London Interbank Offered Rate |
OIS |
|
Overnight Indexed Swap |
SOFR |
|
Secured Overnight Financing Rate |
TruPS |
|
Trust Preferred Securities |
USD |
|
United States Dollar |
See accompanying notes
to financial statements.
21
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS(Continued)
June 30, 2022 (Unaudited)
Note: Percentages indicated are
based on the net assets of the Fund.
* |
All or a portion of the security is pledged as collateral in connection with the Funds
revolving credit agreement. $417,459,271 in aggregate has been pledged as collateral. |
a |
Perpetual security. Perpetual securities have no stated maturity date, but they may be
called/redeemed by the issuer. |
b |
Security converts to floating rate after the indicated fixed-rate coupon period.
|
c |
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 $231,289,756 which represents 37.9% of the net assets of the Fund, of which 0.0% are illiquid. |
d |
Variable rate. Rate shown is in effect at June 30, 2022. |
e |
Securities exempt from registration under Regulation S of the Securities Act of 1933. These
securities are subject to resale restrictions. Aggregate holdings amounted to $99,838,790 which represents 16.4% of the net assets of the Fund, of which 0.0% are illiquid. |
f |
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 $257,968,153 which represents 42.3% of the net assets of the Fund (27.9% of the managed assets of the Fund).
|
g |
Rate quoted represents the annualized seven-day yield.
|
h |
Represents the notional amount of the underlying swap contract. |
i |
Based on 1-Month LIBOR. Represents rates in effect at June 30, 2022.
|
See accompanying notes to
financial statements.
22
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS(Continued)
June 30, 2022 (Unaudited)
|
|
|
|
|
Country Summary |
|
% of Managed Assets |
|
United States |
|
|
51.5 |
|
United Kingdom |
|
|
9.9 |
|
Canada |
|
|
7.7 |
|
France |
|
|
6.8 |
|
Switzerland |
|
|
6.4 |
|
Australia |
|
|
2.3 |
|
Italy |
|
|
1.8 |
|
Netherlands |
|
|
1.5 |
|
Germany |
|
|
1.4 |
|
Japan |
|
|
1.3 |
|
Spain |
|
|
1.2 |
|
Hong Kong |
|
|
0.9 |
|
Ireland |
|
|
0.7 |
|
South Korea |
|
|
0.5 |
|
Other (includes short-term investments) |
|
|
6.1 |
|
|
|
|
|
|
|
|
|
100.0 |
|
|
|
|
|
|
See accompanying notes to
financial statements.
23
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2022 (Unaudited)
|
|
|
|
|
ASSETS: |
|
|
|
|
Investments in securities, at value (Identified
cost$992,125,123) |
|
$ |
906,933,198 |
|
Cash |
|
|
5,940 |
|
Cash collateral pledged for interest rate swap contracts |
|
|
7,538,232 |
|
Foreign currency, at value (Identified cost$846,928) |
|
|
842,774 |
|
Receivable for: |
|
|
|
|
Dividends and interest |
|
|
10,254,433 |
|
Investment securities sold |
|
|
5,739,686 |
|
Unrealized appreciation on forward foreign currency exchange contracts |
|
|
1,696,899 |
|
Other assets |
|
|
35,600 |
|
|
|
|
|
|
Total Assets |
|
|
933,046,762 |
|
|
|
|
|
|
LIABILITIES: |
|
Written option contracts, at value (Premiums received$351,460) |
|
|
1,733,423 |
|
Unrealized depreciation on forward foreign currency exchange contracts |
|
|
175,036 |
|
Payable for: |
|
|
|
|
Revolving credit agreement |
|
|
315,000,000 |
|
Variation margin on interest rate swap contracts |
|
|
1,665,765 |
|
Investment securities purchased |
|
|
1,632,199 |
|
Cash collateral received for over-the-counter option contracts |
|
|
880,000 |
|
Interest expense |
|
|
588,566 |
|
Investment advisory fees |
|
|
546,185 |
|
Dividends declared |
|
|
263,384 |
|
Administration fees |
|
|
46,816 |
|
Directors fees |
|
|
553 |
|
Other liabilities |
|
|
229,956 |
|
|
|
|
|
|
Total Liabilities |
|
|
322,761,883 |
|
|
|
|
|
|
NET ASSETS |
|
$ |
610,284,879 |
|
|
|
|
|
|
NET ASSETS consist of: |
|
|
|
|
Paid-in capital |
|
$ |
685,291,816 |
|
Total distributable earnings/(accumulated loss) |
|
|
(75,006,937 |
) |
|
|
|
|
|
|
|
$ |
610,284,879 |
|
|
|
|
|
|
NET ASSET VALUE PER SHARE: |
|
|
|
|
($610,284,879 ÷ 29,079,221 shares outstanding) |
|
$ |
20.99 |
|
|
|
|
|
|
MARKET PRICE PER SHARE |
|
$ |
19.79 |
|
|
|
|
|
|
MARKET PRICE PREMIUM (DISCOUNT) TO NET ASSET VALUE PER SHARE |
|
|
(5.72 |
)% |
|
|
|
|
|
See accompanying notes to
financial statements.
24
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2022 (Unaudited)
|
|
|
|
|
Investment Income: |
|
|
|
|
Interest income |
|
$ |
21,397,409 |
|
Dividend income (net of $27,781 of foreign withholding tax) |
|
|
3,957,883 |
|
|
|
|
|
|
Total Investment Income |
|
|
25,355,292 |
|
|
|
|
|
|
Expenses: |
|
|
|
|
Investment advisory fees |
|
|
3,455,822 |
|
Interest expense |
|
|
2,230,830 |
|
Administration fees |
|
|
350,151 |
|
Shareholder reporting expenses |
|
|
121,741 |
|
Professional fees |
|
|
55,499 |
|
Custodian fees and expenses |
|
|
12,919 |
|
Directors fees and expenses |
|
|
11,588 |
|
Transfer agent fees and expenses |
|
|
9,115 |
|
Miscellaneous |
|
|
11,936 |
|
|
|
|
|
|
Total Expenses |
|
|
6,259,601 |
|
|
|
|
|
|
Net Investment Income (Loss) |
|
|
19,095,691 |
|
|
|
|
|
|
Net Realized and Unrealized Gain (Loss): |
|
|
|
|
Net realized gain (loss) on: |
|
|
|
|
Investments in securities |
|
|
(12,086,307 |
) |
Written option contracts |
|
|
(535,242 |
) |
Interest rate swap contracts |
|
|
(718,951 |
) |
Forward foreign currency exchange contracts |
|
|
2,333,110 |
|
Foreign currency transactions |
|
|
(52,549 |
) |
|
|
|
|
|
Net realized gain (loss) |
|
|
(11,059,939 |
) |
|
|
|
|
|
Net change in unrealized appreciation (depreciation) on: |
|
|
|
|
Investments in securities |
|
|
(129,446,390 |
) |
Written option contracts |
|
|
(1,515,558 |
) |
Interest rate swap contracts |
|
|
17,510,466 |
|
Forward foreign currency exchange contracts |
|
|
2,303,366 |
|
Foreign currency translations |
|
|
(14,767 |
) |
|
|
|
|
|
Net change in unrealized appreciation (depreciation) |
|
|
(111,162,883 |
) |
|
|
|
|
|
Net Realized and Unrealized Gain (Loss) |
|
|
(122,222,822 |
) |
|
|
|
|
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
|
$ |
(103,127,131 |
) |
|
|
|
|
|
See accompanying notes to
financial statements.
25
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, 2022 |
|
|
For the Year Ended December 31, 2021 |
|
Change in Net Assets: |
|
|
|
|
|
|
|
|
From Operations: |
|
|
|
|
|
|
|
|
Net investment income (loss) |
|
$ |
19,095,691 |
|
|
$ |
40,014,279 |
|
Net realized gain (loss) |
|
|
(11,059,939 |
) |
|
|
23,144,096 |
|
Net change in unrealized appreciation (depreciation) |
|
|
(111,162,883 |
) |
|
|
(20,572,136 |
) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
|
|
(103,127,131 |
) |
|
|
42,586,239 |
|
|
|
|
|
|
|
|
|
|
Distributions to Shareholders |
|
|
(23,552,699 |
) |
|
|
(61,313,770 |
) |
|
|
|
|
|
|
|
|
|
Capital Stock Transactions: |
|
|
|
|
|
|
|
|
Increase (decrease) in net assets from Fund share transactions |
|
|
1,109,571 |
|
|
|
2,954,435 |
|
|
|
|
|
|
|
|
|
|
Total increase (decrease) in net assets |
|
|
(125,570,259 |
) |
|
|
(15,773,096 |
) |
Net Assets: |
|
|
|
|
|
|
|
|
Beginning of period |
|
|
735,855,138 |
|
|
|
751,628,234 |
|
|
|
|
|
|
|
|
|
|
End of period |
|
$ |
610,284,879 |
|
|
$ |
735,855,138 |
|
|
|
|
|
|
|
|
|
|
See accompanying notes to
financial statements.
26
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
STATEMENT OF CASH FLOWS
For the Six Months Ended June 30, 2022 (Unaudited)
|
|
|
|
|
Increase (Decrease) in Cash: |
|
Cash Flows from Operating Activities: |
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
|
$ |
(103,127,131 |
) |
Adjustments to reconcile net increase (decrease) in net assets resulting
from operations to net cash provided by operating activities: |
|
|
|
|
Purchases of long-term investments |
|
|
(237,495,967 |
) |
Proceeds from sales and maturities of long-term investments |
|
|
230,501,375 |
|
Net purchases, sales and maturities of short-term investments |
|
|
(512,673 |
) |
Net amortization of premium on investments in securities |
|
|
2,582,057 |
|
Net decrease in dividends and interest receivable and other assets |
|
|
389,099 |
|
Net increase in payable for collateral on option contracts |
|
|
540,000 |
|
Net increase in interest expense payable, accrued expenses and other
liabilities |
|
|
278,859 |
|
Net increase in payable for variation margin on interest rate swap
contracts |
|
|
1,504,289 |
|
Net decrease in premiums received from written option contracts |
|
|
(3,118 |
) |
Net change in unrealized depreciation on written option contracts |
|
|
1,515,558 |
|
Net change in unrealized depreciation on investments in securities |
|
|
129,446,390 |
|
Net change in unrealized appreciation on forward foreign currency exchange
contracts |
|
|
(2,303,366 |
) |
Net realized loss on investments in securities |
|
|
12,086,307 |
|
|
|
|
|
|
Cash provided by operating activities |
|
|
35,401,679 |
|
|
|
|
|
|
Cash Flows from Financing Activities: |
|
|
|
|
Dividends and distributions paid |
|
|
(33,789,247 |
) |
|
|
|
|
|
Increase (decrease) in cash and restricted cash |
|
|
1,612,432 |
|
Cash and restricted cash at beginning of period (including foreign
currency) |
|
|
6,774,514 |
|
|
|
|
|
|
Cash and restricted cash at end of period (including foreign currency) |
|
$ |
8,386,946 |
|
|
|
|
|
|
Supplemental Disclosure of Cash Flow Information:
For the six months ended June 30, 2022, interest paid was $1,887,429.
For the six months ended June 30, 2022, reinvestment of dividends was $1,109,571.
See accompanying notes to financial statements.
27
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
STATEMENT OF CASH FLOWS(Continued)
For the Six Months Ended June 30, 2022 (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 |
|
$ |
5,940 |
|
Restricted cash |
|
|
7,538,232 |
|
Foreign currency |
|
|
842,774 |
|
|
|
|
|
|
Total cash and restricted cash shown on the Statement of Cash Flows |
|
$ |
8,386,946 |
|
|
|
|
|
|
Restricted cash consists of cash that has been pledged to cover the Funds 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 LIMITED DURATION
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, 2022 |
|
|
For the Year Ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
Per Share Operating Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
|
$25.34 |
|
|
|
$25.99 |
|
|
|
$26.46 |
|
|
|
$23.23 |
|
|
|
$27.15 |
|
|
|
$25.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
(loss)a |
|
|
0.66 |
|
|
|
1.38 |
|
|
|
1.48 |
|
|
|
1.41 |
|
|
|
1.35 |
|
|
|
1.49 |
|
Net realized and unrealized gain (loss) |
|
|
(4.20 |
) |
|
|
0.09 |
|
|
|
(0.16 |
) |
|
|
3.69 |
|
|
|
(3.40 |
) |
|
|
2.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total from investment operations |
|
|
(3.54 |
) |
|
|
1.47 |
|
|
|
1.32 |
|
|
|
5.10 |
|
|
|
(2.05 |
) |
|
|
3.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less dividends and distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.81 |
) |
|
|
(1.40 |
) |
|
|
(1.43 |
) |
|
|
(1.52 |
) |
|
|
(1.56 |
) |
|
|
(1.58 |
) |
Net realized gain |
|
|
|
|
|
|
(0.72 |
) |
|
|
(0.22 |
) |
|
|
|
|
|
|
(0.30 |
) |
|
|
(0.39 |
) |
Tax return of capital |
|
|
|
|
|
|
|
|
|
|
(0.14 |
) |
|
|
(0.35 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total dividends and distributions to shareholders |
|
|
(0.81 |
) |
|
|
(2.12 |
) |
|
|
(1.79 |
) |
|
|
(1.87 |
) |
|
|
(1.87 |
) |
|
|
(1.97 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net asset value |
|
|
(4.35 |
) |
|
|
(0.65 |
) |
|
|
(0.47 |
) |
|
|
3.23 |
|
|
|
(3.92 |
) |
|
|
1.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period |
|
|
$20.99 |
|
|
|
$25.34 |
|
|
|
$25.99 |
|
|
|
$26.46 |
|
|
|
$23.23 |
|
|
|
$27.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value, end of period |
|
|
$19.79 |
|
|
|
$26.48 |
|
|
|
$26.60 |
|
|
|
$26.22 |
|
|
|
$21.81 |
|
|
|
$26.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net asset value
returnb |
|
|
14.06 |
%c |
|
|
5.81 |
% |
|
|
5.90 |
% |
|
|
22.77 |
% |
|
|
7.65 |
% |
|
|
14.97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total market value
returnb |
|
|
22.46 |
%c |
|
|
8.03 |
% |
|
|
9.38 |
% |
|
|
29.58 |
% |
|
|
9.70 |
% |
|
|
14.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to
financial statements.
29
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
FINANCIAL HIGHLIGHTS (Unaudited)(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, 2022 |
|
|
For the Year Ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
Ratios/Supplemental Data: |
Net assets, end of period (in millions) |
|
|
$610.3 |
|
|
|
$735.9 |
|
|
|
$751.6 |
|
|
|
$763.6 |
|
|
|
$670.0 |
|
|
|
$782.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to average daily net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
1.85 |
%d |
|
|
1.55 |
% |
|
|
1.78 |
% |
|
|
2.50 |
% |
|
|
2.38 |
% |
|
|
1.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (excluding interest expense) |
|
|
1.19 |
%d |
|
|
1.17 |
% |
|
|
1.18 |
% |
|
|
1.17 |
% |
|
|
1.17 |
% |
|
|
1.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
|
|
5.66 |
%d |
|
|
5.31 |
% |
|
|
6.08 |
% |
|
|
5.58 |
% |
|
|
5.24 |
% |
|
|
5.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of expenses to average daily managed assetse |
|
|
1.27 |
%d |
|
|
1.09 |
% |
|
|
1.23 |
% |
|
|
1.75 |
% |
|
|
1.67 |
% |
|
|
1.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate |
|
|
25 |
%c |
|
|
48 |
% |
|
|
72 |
% |
|
|
46 |
% |
|
|
35 |
% |
|
|
36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revolving Credit Agreement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset coverage ratio for revolving credit agreement |
|
|
294 |
% |
|
|
334 |
% |
|
|
339 |
% |
|
|
342 |
% |
|
|
313 |
% |
|
|
349 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset coverage per $1,000 for revolving credit agreement |
|
|
$2,937 |
|
|
|
$3,336 |
|
|
|
$3,386 |
|
|
|
$3,424 |
|
|
|
$3,127 |
|
|
|
$3,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of loan outstanding (in millions) |
|
|
$315.0 |
|
|
|
$315.0 |
|
|
|
$315.0 |
|
|
|
$315.0 |
|
|
|
$315.0 |
|
|
|
$315.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a |
Calculation based on average shares outstanding. |
b |
Total net asset value return measures the change in net asset value per share over the period
indicated. Total market value return is computed based upon the Funds 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 Funds dividend reinvestment plan. |
e |
Average daily managed assets represent net assets plus the outstanding balance of the revolving
credit agreement. |
See
accompanying notes to financial statements.
30
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Note 1. Organization and Significant Accounting Policies
Cohen & Steers Limited Duration Preferred and Income Fund, Inc. (the Fund) was incorporated under the laws of the State of
Maryland on May 1, 2012 and is registered under the Investment Company Act of 1940 (the 1940 Act) as a diversified, closed-end management investment company. The Funds primary investment objective
is high current income. The Funds 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 946Investment 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 at the average of the quoted bid and ask prices as of the close of business. Over-the-counter (OTC) options 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 advisor)
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 advisor, 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 advisor, pursuant to
31
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
delegation by the Board of Directors, to reflect the fair value of such
securities. The pricing services or 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
policies and procedures approved by the Funds Board of Directors delegate authority to make fair value determinations to the investment advisor, subject to the oversight of the Board of Directors. The investment advisor 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 advisor 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 Funds 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 Funds 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 Funds investments is summarized below.
32
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
|
|
|
Level 1quoted prices in active markets for identical investments |
|
|
|
Level 2other significant observable inputs (including quoted prices for similar investments,
interest rates, credit risk, etc.) |
|
|
|
Level 3significant unobservable inputs (including the Funds 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, 2022 in valuing the Funds 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$25 Par Value |
|
$ |
79,485,034 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
79,485,034 |
|
Preferred Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Securities |
|
|
|
|
|
|
802,618,347 |
|
|
|
|
|
|
|
802,618,347 |
|
Short-Term Investments |
|
|
|
|
|
|
22,232,128 |
|
|
|
|
|
|
|
22,232,128 |
|
Purchased Option Contracts |
|
|
|
|
|
|
2,597,689 |
|
|
|
|
|
|
|
2,597,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments in
Securitiesa |
|
$ |
79,485,034 |
|
|
$ |
827,448,164 |
|
|
$ |
|
|
|
$ |
906,933,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Swap Contracts |
|
$ |
|
|
|
$ |
21,108,973 |
|
|
$ |
|
|
|
$ |
21,108,973 |
|
Forward Foreign Currency Exchange Contracts |
|
|
|
|
|
|
1,696,899 |
|
|
|
|
|
|
|
1,696,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Derivative
Assetsa |
|
$ |
|
|
|
$ |
22,805,872 |
|
|
$ |
|
|
|
$ |
22,805,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Written Option Contracts |
|
$ |
|
|
|
$ |
(1,733,423 |
) |
|
$ |
|
|
|
$ |
(1,733,423 |
) |
Forward Foreign Currency Exchange Contracts |
|
|
|
|
|
|
(175,036 |
) |
|
|
|
|
|
|
(175,036 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Derivative
Liabilitiesa |
|
$ |
|
|
|
$ |
(1,908,459 |
) |
|
$ |
|
|
|
$ |
(1,908,459 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
33
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
foreign securities, which are recorded as soon as the Fund is informed after the ex-dividend date. 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 managements 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 Funds 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 LIMITED DURATION
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.
Interest Rate Swaption Contracts: The Fund may write or purchase interest rate swaptions which are options to enter
into a pre-defined swap agreement at a specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises the swaption. The interest rate swaption
agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate payer upon exercise.
Centrally Cleared Interest Rate Swap Contracts: The Fund uses interest rate swaps in connection with borrowing under its revolving 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 Funds shares as a result of the floating rate structure of interest owed pursuant to the revolving 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 counterpartys agreement to pay the Fund a variable rate payment that was
intended to approximate the Funds variable rate payment obligation on the revolving 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).
35
COHEN
& STEERS LIMITED DURATION
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 Funds 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 Funds Reinvestment Plan, unless the shareholder has elected to have them paid in cash.
The Fund has a managed distribution policy in accordance with exemptive relief issued by the U.S. Securities and Exchange
Commission (SEC). The Plan gives the Fund greater flexibility to realize long-term caital gains throughout the year and to distribute those gains on a more regular basis to shareholders. Therefore, regular monthly distributions throughout the year
may include a portion of estimated realized long-term capital gains, along with net investment income, short-term capital gains and return of capital, which is not taxable. In accordance with the Plan, the Fund is required to adhere to certain
conditions in order to distribute long-term capital gains during the year.
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, 2022, the investment advisor considers it likely that a portion of the dividends will be reclassified to distributions from
net realized gain and/or tax return of capital upon the final determination of the Funds taxable income after December 31, 2022, the Funds fiscal year end.
36
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
Distributions Subsequent to June 30,
2022: The following distributions have been declared by the Funds Board of Directors and are payable subsequent to the period end of this report.
|
|
|
|
|
|
|
|
|
Ex-Date |
|
Record Date |
|
Payable Date |
|
|
Amount |
7/12/22 |
|
7/13/22 |
|
|
7/29/22 |
|
|
$0.135 |
8/16/22 |
|
8/17/22 |
|
|
8/31/22 |
|
|
$0.135 |
9/13/22 |
|
9/14/22 |
|
|
9/30/22 |
|
|
$0.135 |
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 is recorded net of non-U.S. taxes paid. Management has analyzed the
Funds 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, 2022, no additional provisions for income tax are required in the Funds financial statements. The Funds 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 Advisory
Fees, Administration Fees and Other Transactions with Affiliates
Investment Advisory Fees: Cohen &
Steers Capital Management, Inc. serves as the Funds investment advisor pursuant to an investment advisory agreement (the investment advisory agreement). Under the terms of the investment advisory agreement, the investment advisor provides the
Fund with day-to-day investment decisions and generally manages the Funds 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 advisor 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 advisor under which the
investment advisor 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, 2022,
the Fund incurred $296,213 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.
37
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
Directors and Officers Fees: Certain
directors and officers of the Fund are also directors, officers and/or employees of the investment advisor. The Fund does not pay compensation to directors and officers affiliated with the investment advisor except for the Chief Compliance Officer,
who received compensation from the investment advisor, which was reimbursed by the Fund, in the amount of $2,972 for the six months ended June 30, 2022.
Note 3. Purchases and Sales of Securities
Purchases and sales of securities, excluding short-term investments, for the six months ended June 30, 2022, totaled
$239,128,166 and $236,191,963, respectively.
Note 4. Derivative Investments
The following tables present the value of derivatives held at June 30, 2022 and the effect of derivatives held during the six
months ended June 30, 2022, along with the respective location in the financial statements.
Statement of Assets and Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
Liabilities |
|
Derivatives |
|
Location |
|
Fair Value |
|
|
Location |
|
Fair Value |
|
Foreign Exchange Risk: |
|
|
|
|
|
|
|
|
|
|
|
|
Forward Foreign Currency Exchange Contractsa |
|
Unrealized appreciation |
|
|
$1,696,899 |
|
|
Unrealized depreciation |
|
$ |
175,036 |
|
|
|
|
|
|
Interest Rate Risk: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate
Swap Contractsa |
|
|
|
|
|
|
|
Payable for variation margin on interest rate swap contracts |
|
|
21,108,973 |
b |
Purchased Option Contracts Over-the-Counter |
|
Investments in securities, at value |
|
|
2,597,689 |
|
|
|
|
|
|
|
Written Option Contracts Over-the-Counter |
|
|
|
|
|
|
|
Written option contracts, at value |
|
|
1,733,423 |
|
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 payable to the broker. |
38
COHEN
& STEERS LIMITED DURATION
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 Exchange Risk: |
|
|
|
|
|
|
|
|
|
|
Purchased Option
Contractsa |
|
Net Realized and Unrealized Gain (Loss) |
|
$ |
(69,582 |
) |
|
$ |
|
|
Forward Foreign Currency Exchange Contracts |
|
Net Realized and Unrealized Gain (Loss) |
|
|
2,333,110 |
|
|
|
2,303,366 |
|
|
|
|
|
Interest Rate Risk: |
|
|
|
|
|
|
|
|
|
|
Interest Rate Swap Contracts |
|
Net Realized and Unrealized Gain (Loss) |
|
|
(718,951 |
) |
|
|
17,510,466 |
|
Purchased Option
Contractsa |
|
Net Realized and Unrealized Gain (Loss) |
|
|
1,069,384 |
|
|
|
2,057,060 |
|
Written Option
Contractsa |
|
Net Realized and Unrealized Gain (Loss) |
|
|
(535,242 |
) |
|
|
(1,515,558 |
) |
a |
Purchased option contracts are included in net realized gain (loss) and change in unrealized
appreciation (depreciation) on investments in securities. |
At June 30, 2022, the Funds
derivative assets and liabilities (by type), which are subject to a master netting agreement, are as follows:
|
|
|
|
|
|
|
|
|
Derivative Financial Instruments |
|
Assets |
|
|
Liabilities |
|
Interest Rate Risk: |
|
|
|
|
|
|
|
|
Purchased Option
Contractsa |
|
$ |
2,597,689 |
|
|
$ |
|
|
Written Option Contracts |
|
|
|
|
|
|
1,733,423 |
|
a |
Purchased option contracts are included in investments in securities, at value on the Statement of
Assets & Liabilities. |
The following table presents the Funds 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, 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Counterparty |
|
Gross Amount of Assets Presented in the Statement of Assets and Liabilities |
|
|
Financial Instruments and Derivatives Available for Offset |
|
|
Collateral Receiveda |
|
|
Net Amount of Derivative Assetb |
|
Goldman Sachs International |
|
$ |
2,597,689 |
|
|
$ |
(1,733,423 |
) |
|
$ |
(864,266 |
) |
|
$ |
|
|
39
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Counterparty |
|
Gross Amount of Liabilities Presented in the Statement of Assets and Liabilities |
|
|
Financial Instruments and Derivatives Available for Offset |
|
|
Collateral Pledgeda |
|
|
Net Amount of Derivative Liabilitiesb |
|
Goldman Sachs International |
|
$ |
1,733,423 |
|
|
$ |
(1,733,423 |
) |
|
$ |
|
|
|
$ |
|
|
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 the net payable due to the
counterparty in the event of default. |
The following summarizes the volume of the Funds option
contracts and forward foreign currency exchange contracts activity for the six months ended June 30, 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased Option Contractsa |
|
|
Written Option Contractsa |
|
|
Forward Foreign Currency Exchange Contracts |
|
Average Notional Amount |
|
$ |
39,638,929 |
|
|
$ |
39,638,929 |
|
|
$ |
59,297,858 |
|
a |
Notional amount for swaption contracts represents the notional amount of the underlying swap
contract. Notional amount for all other option contracts 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, 2022, 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 |
|
$ |
992,125,123 |
|
|
|
|
|
|
Gross unrealized appreciation on investments |
|
$ |
26,753,012 |
|
Gross unrealized depreciation on investments |
|
|
(90,696,064 |
) |
|
|
|
|
|
Net unrealized appreciation (depreciation) on investments |
|
$ |
(63,943,052 |
) |
|
|
|
|
|
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, 2022, the Fund issued 44,081 shares of common stock at $1,109,571 for the reinvestment of
dividends. During the year ended December 31, 2021, the Fund issued 113,691 shares of common stock at $2,954,435 for the reinvestment of dividends.
40
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
On December 7, 2021, the Board of Directors approved
the continuation of the delegation of its authority to management to effect repurchases, pursuant to managements discretion and subject to market conditions and investment considerations, of up to 10% of the Funds common shares
outstanding (Share Repurchase Program) as of January 1, 2022 through December 31, 2022.
During the six months
ended June 30, 2022 and the year ended December 31, 2021, the Fund did not effect any repurchases.
Note 7. Borrowings
The Fund has entered into a $315,000,000 revolving 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 London Interbank Offered Rate (LIBOR)-based rate through June 28, 2022 and a Secured
Overnight Financing Rate (SOFR)-based rate effective June 29, 2022 pursuant to an amendment to the credit agreement. The Fund also pays a fee of 0.15% per annum on any unutilized portion of the credit agreement through June 28, 2022 and
effective June 29, 2022, 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 $315,000,000. 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 30 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 Funds revolving 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, 2022, the Fund had outstanding borrowings of $315,000,000 at a current rate of 2.6%. 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, 2022, the Fund borrowed an average daily balance of $315,000,000 at a weighted average
borrowing cost of 1.4%.
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 Funds NAV but entirely upon whether the market price of the shares at the time of sale is above or below the investors 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
41
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
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 defer or
omit distributions. Preferred securities are also generally subordinated to bonds and other debt instruments in a companys capital structure. During periods of declining interest rates, an issuer may be able to exercise an option to redeem
(call) its issue at par earlier than scheduled, and the Fund may be 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 issuers 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 investors standing in a bankruptcy. Some CoCos provide for a reduction in the value or principal amount of the security under such
circumstances. 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.
Duration Risk: Duration is a mathematical calculation of the average life of a fixed-income or preferred security that serves as a measure of the securitys price risk to changes in interest rates (or yields). Securities
with longer durations tend to be more sensitive to interest rate (or yield) changes than securities with shorter durations. For example, the value of a portfolio of fixed income securities with an average duration of three years would generally be
expected to decline by approximately 3% if interest rates rose by one percentage point. Duration differs from maturity in that it considers potential changes to interest rates, and a securitys coupon payments, yield, price and par value and
call features, in addition to the amount of time until the security matures. Various techniques may be used to shorten or lengthen the Funds duration. The duration of a security will be expected to change over time with changes in market
factors and time to maturity.
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
42
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
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 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
Funds 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 Funds investments in foreign securities will be subject to foreign currency risk, which means that the Funds 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 Funds foreign currency risks, and such
investments are subject to the risks described under Derivatives and Hedging Transactions Risk below.
43
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
Leverage Risk: The use of leverage is a speculative
technique and there are special risks and costs associated with leverage. The NAV of the Funds 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 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 advisory fees payable to the investment advisor 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 Funds 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 Russias
military invasion of Ukraine), terrorist attacks, natural or environmental disasters, country instability, infectious disease epidemics, 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 both the U.S. and global financial markets. 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 Funds 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. 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 COVID-19
pandemic and its effects are expected to continue and therefore the economic outlook, particularly for certain industries and businesses, remains inherently uncertain.
44
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
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 between the UK and the EU (TCA), provisionally went into effect on January 1, 2021, and entered into force officially on May 1, 2021. Notwithstanding the TCA, following the transition period, there is
likely to be considerable uncertainty as to the UKs post-transition framework, including how the financial markets will react. As this process unfolds, markets may be further disrupted. Given the size and importance of the UKs economy,
uncertainty about its legal, political and economic relationship with the remaining member states of the EU may continue to be a source of instability.
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 Russian individuals and entities. The extent and duration of the military action, sanctions imposed and other punitive actions taken and
resulting future market disruptions in Europe and globally cannot be easily predicted, but could be significant and have a severe adverse effect on the global economy, securities markets and commodities markets globally. To the extent the Fund has
exposure to the energy sector, the Fund may be especially susceptible to these risks. These disruptions may also make it difficult to value the Funds portfolio investments and cause certain of the Funds investments to become illiquid.
The strengthening or weakening of the U.S. dollar relative to other currencies may, among other things, adversely affect the Funds 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 SECs final rules, related requirements and amendments to modernize reporting and disclosure, along with other potential upcoming regulations, could, among other things, restrict the
Funds ability to engage in transactions, and/or increase overall expenses of the Fund. In addition to recently adopted 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. 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 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 LIBORs administrator, ICE Benchmark Administration (IBA) ceased publication of most LIBOR settings at the end of 2021 and the IBA is expected to cease
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 SOFR for U.S. dollar LIBOR and the Sterling Overnight Interbank Average Rate for
45
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Unaudited)(Continued)
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.
There remains uncertainty and risk regarding the willingness and ability of issuers and lenders to include enhanced provisions in new and existing contracts or instruments, the suitability of the proposed replacement rates, and the
process for amending existing contracts and instruments remains unclear. As such, 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 Funds
performance or NAV. In addition, any alternative reference rate may be a less effective substitute resulting in prolonged adverse market conditions for the Fund. Since the usefulness of LIBOR as a benchmark could deteriorate during the transition
period, these effects could occur prior to the cessation of LIBOR publications.
Note 9. Other
In the normal course of business, the Fund enters into contracts that provide general indemnifications. The Funds 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.
Note 10. New Accounting Pronouncement
In January 2021, the Financial Accounting Standards Board issued Accounting Standards Update No. 2021-01 (ASU 2021-01), Reference Rate Reform (Topic 848). ASU 2021-01 is an update of 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 amendments in this update are effective immediately through December 31, 2022, for all entities. Management does not expect any impact to the Funds net assets or results of operations.
Note 11. Subsequent Events
Management has evaluated events and transactions occurring after June 30, 2022 through the date that the financial statements were issued, and has determined that no additional disclosure in the financial statements is
required.
46
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
PROXY RESULTS (Unaudited)
Cohen & Steers Limited Duration Preferred and Income Fund, Inc. shareholders voted on the following proposals at the
annual meeting held on April 27, 2022. The description of each proposal and number of shares voted are as follows:
|
|
|
|
|
|
|
|
|
Common Shares |
|
Shares Voted for |
|
|
Authority Withheld |
|
To elect Directors: |
|
|
|
|
|
|
|
|
|
|
|
Joseph M. Harvey. . . . . . . . |
|
|
24,156,674 |
|
|
|
311,593 |
|
Gerald J. Maginnis. . . . . . . . . . . . . . . . . |
|
|
24,158,501 |
|
|
|
309,766 |
|
Daphne L. Richards. . . . |
|
|
24,186,025 |
|
|
|
282,242 |
|
47
COHEN
& STEERS LIMITED DURATION
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 U.S. Securities and Exchange Commissions (SEC) website at http://www.sec.gov. In addition, the
Funds 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 SECs website at http://www.sec.gov.
Disclosures of the Funds 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 Funds fiscal quarter. The Funds Form N-PORT is available (i) without charge, upon request, by calling
866-227-0757 or (ii) on the SECs 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 Funds investment company taxable income and net realized gains. Distributions in excess of the Funds investment company
taxable income and net realized gains are a return of capital distributed from the Funds assets. To the extent this occurs, the Funds 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 Funds total assets and, therefore, could have the effect of increasing the Funds 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.
48
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
The following information in this semi-annual shareholder report is a summary of certain changes since the Funds most recent
annual shareholder report. This information may not reflect all of the changes that have occurred since you purchased the Fund.
Benchmark Change
On December 7, 2021, the Board of Directors of the Fund approved a change to the Funds blended benchmark (currently consisting of 60% ICE BofA US IG Institutional Capital Securities Index, 20% ICE BofA 7% Constrained
Adjustable-Rate Preferred Securities Index, and 20% Bloomberg Developed Market USD Contingent Capital Index) to a blended benchmark consisting of 55% ICE BofA US IG Institutional Capital Securities Index, 20% ICE BofA 7% Constrained Adjustable-Rate
Preferred Securities Index, and 25% Bloomberg Developed Market USD Contingent Capital Index. This change was effective after the close of business on March 31, 2022.
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
The Board of Directors of the Fund, including a majority of the directors who are not parties to the Funds investment
advisory agreement (the Advisory Agreement), or interested persons of any such party (the Independent Directors), has the responsibility under the Investment Company Act of 1940 to approve the Funds Advisory 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 Advisory Agreement was discussed at a meeting of the Independent Directors, in their capacity
as the Contract Review Committee, held on June 7, 2022 and at meetings of the full Board of Directors held on March 15, 2022 and June 14, 2022. The Independent Directors, in their capacity as the Contract Review Committee, also
discussed the Advisory Agreement in executive session on June 14, 2022. At the meeting of the full Board of Directors on June 14, 2022, the Advisory Agreement was unanimously continued for a term ending June 30, 2023 by the
Funds 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 Advisory 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 Funds investment advisor (the Investment Advisor); 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 advisory personnel. In addition, the Board of Directors considered information provided from time to time by the Investment Advisor 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 Funds objective. The Board of Directors also considered information provided by
the Investment Advisor 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. Additionally, the Independent Directors noted that in connection with their considerations, that they had received information from the Investment Advisor about, and discussed with the Investment Advisor, the
49
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
operations of its business continuity plan and related matters and the operations of third party service providers during the COVID-19 pandemic. In particular, the Board of Directors
considered the following:
(i) The nature, extent and quality of services to be provided by the
Investment Advisor: The Board of Directors reviewed the services that the Investment Advisor 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 Funds assets, furnishing information to the Board of
Directors of the Fund regarding the Funds portfolio, providing individuals to serve as Fund officers, managing the Funds debt leverage level, and generally managing the Funds 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 Advisor 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
Advisors 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 Advisors ability to
attract qualified and experienced personnel. The Board of Directors also considered the administrative services provided by the Investment Advisor, 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 Advisor are satisfactory and appropriate.
(ii) Investment performance of the Fund and the Investment Advisor: The Board of Directors considered the investment
performance of the Fund compared to Peer Funds and compared to a relevant linked blended benchmark. The Board of Directors noted that the Fund underperformed the Peer Group median for the one-, three- and
five-year periods ended March 31, 2022, ranking the Fund in the fourth quintile for each. The Board of Directors also noted that the Fund outperformed the linked blended benchmark for the one-, three- and
five-year periods ended March 31, 2022. The Board of Directors engaged in discussions with the Investment Advisor regarding the contributors to and detractors from the Funds performance during the period, the relevant implications of the
continuing COVID-19 pandemic, as well as the impact of leverage on the Funds performance. The Board of Directors also considered supplemental information provided by the Investment Advisor, including a
narrative summary of various factors affecting performance and the Investment Advisors 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 Advisory Agreement.
(iii) Cost of the services to be provided and
profits to be realized by the Investment Advisor 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 Funds 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 noted that the actual management fees at managed and common asset levels are lower than the Peer
Group medians, ranking the Fund in the second quintile for each. The Board of Directors considered that the Funds total expense ratios including investment-related expenses at managed and common asset levels were lower than the Peer Group
medians, ranking in the first and second quintiles, respectively. The Board of Directors also noted that the Funds total expense ratios excluding investment-related expenses at managed and common asset levels were lower than the Peer Group
medians, ranking in the first and second quintiles, respectively. The Board of
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COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
Directors considered the impact of leverage levels on the Funds fees and expenses at managed and common asset levels. In light of the considerations above, the Board of Directors concluded that the Funds current expense
structure was satisfactory.
The Board of Directors also reviewed information regarding the profitability to the
Investment Advisor of its relationship with the Fund. The Board of Directors considered the level of the Investment Advisors profits and whether the profits were reasonable for the Investment Advisor. The Board of Directors took into
consideration other benefits to be derived by the Investment Advisor in connection with the Advisory 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 Advisor receives by allocating the Funds brokerage transactions. The Board of Directors further considered that the Investment Advisor 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 Advisor and the
associated administration fee paid to the Investment Advisor 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 Advisor from its relationship with the Fund were reasonable and consistent with the Investment Advisors 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 Funds 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 Advisor 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 advisory 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 Advisory Agreement to those under other investment advisory contracts of other investment advisors managing Peer Funds. The Board of Directors also compared the services rendered and fees paid
under the Advisory Agreement to fees paid, including the ranges of such fees, under the Investment Advisors other fund advisory agreements and advisory contracts with institutional and other clients with similar investment mandates, noting
that the Investment Advisor 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 Advisor in
developing and managing the Fund that the Investment Advisor 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 Advisory 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 Advisory Agreement.
51
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
Cohen & Steers Privacy Policy
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Facts |
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What Does Cohen & Steers Do With Your Personal Information? |
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Why? |
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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. |
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What? |
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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 |
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How? |
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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. |
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Reasons we can share your personal information |
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Does Cohen & Steers
share? |
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Can you limit this
sharing? |
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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 |
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Yes |
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No |
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For our marketing purposes
to offer our products and services to you |
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Yes |
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No |
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For joint marketing with other financial companies |
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No |
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We dont share |
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For our affiliates everyday business purposes
information about your transactions and experiences |
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No |
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We dont share |
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For our affiliates everyday business purposes
information about your creditworthiness |
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No |
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We dont share |
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For our affiliates to market to you |
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No |
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We dont share |
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For non-affiliates to market to you |
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No |
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We dont share |
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Questions? Call 800.330.7348 |
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52
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
Cohen & Steers Privacy Policy(Continued)
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Who we are |
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Who is providing this notice? |
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Cohen & Steers Capital Management, Inc., Cohen & Steers Asia Limited, Cohen & Steers Japan Limited, Cohen & Steers UK Limited,
Cohen & Steers Ireland Limited, Cohen & Steers Securities, LLC, Cohen & Steers Private Funds and Cohen & Steers Open and Closed-End Funds (collectively, Cohen &
Steers). |
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What we do |
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How does Cohen & Steers protect my personal information? |
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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. |
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How does Cohen & Steers collect my personal information? |
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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. |
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Why cant I limit all sharing? |
|
Federal law gives you the right to limit only:
sharing for
affiliates everyday business purposesinformation 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. |
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Definitions |
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Affiliates |
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Companies related by common ownership or control. They can be financial and
nonfinancial companies.
Cohen & Steers does not share with affiliates. |
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Non-affiliates |
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Companies not related by common ownership or control. They can be financial and
nonfinancial companies.
Cohen & Steers does not share with
non-affiliates. |
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Joint marketing |
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A formal agreement between non-affiliated
financial companies that together market financial products or services to you.
Cohen & Steers does not jointly market. |
53
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
Cohen & Steers Open-End Mutual Funds
COHEN & STEERS REALTY SHARES
|
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Designed for investors seeking total return, investing primarily in U.S. real estate securities |
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Symbols: CSJAX, CSJCX, CSJIX, CSRSX, CSJRX, CSJZX |
COHEN & STEERS REAL ESTATE SECURITIES FUND
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Designed for investors seeking total return, investing primarily in U.S. real estate securities |
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Symbols: CSEIX, CSCIX, CREFX, CSDIX, CIRRX, CSZIX |
COHEN & STEERS INSTITUTIONAL REALTY SHARES
|
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Designed for institutional investors seeking total return, investing primarily in U.S. real estate securities |
COHEN & STEERS
GLOBAL REALTY SHARES
|
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Designed for investors seeking total return, investing primarily in global real estate equity securities |
|
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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 |
|
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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 |
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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 |
|
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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 |
|
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Symbols: LPXAX, LPXCX, LPXFX, LPXIX, LPXRX, LPXZX |
COHEN & STEERS MLP & ENERGY OPPORTUNITY FUND
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Designed for investors seeking total return, investing primarily in midstream energy master limited partnership (MLP) units and related stocks |
|
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Symbols: MLOAX, MLOCX, MLOIX, MLORX, MLOZX |
COHEN & STEERS GLOBAL INFRASTRUCTURE FUND
|
|
Designed for investors seeking total return, investing primarily in global infrastructure securities |
|
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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
|
|
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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.
54
COHEN
& STEERS LIMITED DURATION
PREFERRED AND INCOME FUND, INC.
OFFICERS AND DIRECTORS
Joseph M. Harvey
Director,
Chairman 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 Advisor 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 Lincoln Street
Boston, MA 02111
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: LDP
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.
55
eDelivery AVAILABLE
Stop traditional mail delivery;
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and prospectus online.
Sign up at cohenandsteers.com
Cohen & Steers
Limited Duration
Preferred and
Income Fund
(LDP)
Semiannual Report June 30, 2022
As permitted by regulations adopted
by the U.S. Securities and Exchange Commission, paper copies of the Funds annual and semi-annual shareholder reports are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are made
available on the Funds website at www.cohenandsteers.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to
receive shareholder reports and other communications from a Fund electronically anytime by contacting your financial intermediary or, if you are a direct investor, by signing up at www.cohenandsteers.com.
You may elect to receive all future reports in paper, free of charge, at anytime. If you invest through a financial intermediary, you can contact your financial
intermediary or, if you are a direct investor, you can call (866) 227-0757 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all Funds held in your
account if you invest through your financial intermediary or all Funds held within the fund complex if you invest directly with the Fund.
LDPSAR