Beyond Bending Tell You How
Real estate investments have always been a popular choice for investors looking for long-term growth and stability. One of the leading companies in this space is Cohen and Steers, an investment management firm that specializes in real estate securities. With over 30 years of experience, the company has a proven track record of delivering strong returns for its clients.
In this comprehensive guide, we will take a closer look at Cohen and Steers Real Estate, including its history, investment philosophy, and performance. We will also analyze the company’s investment strategies and portfolio holdings to help investors better understand how they can benefit from this leading real estate investment management firm.
History of Cohen and Steers
Cohen and Steers was founded in 1986 by Martin Cohen and Robert Steers, who sought to create a specialized investment management firm focused on real estate securities. The company quickly gained a reputation for its expertise in this field, and by the early 1990s, it had become one of the largest real estate investment management firms in the United States.
Over the years, Cohen and Steers has expanded its offerings to include a range of investment strategies, including global real estate, infrastructure, and preferred securities. Today, the company manages over $70 billion in assets under management and has a global presence with offices in North America, Europe, and Asia.
Investment Philosophy and Strategy
At the core of Cohen and Steers’ investment philosophy is the belief that real estate securities offer a compelling investment opportunity due to their low correlation with other asset classes and the potential for long-term growth. The company’s investment strategy is focused on identifying high-quality real estate companies with strong fundamentals and long-term growth potential.
To achieve this, Cohen and Steers employs a research-driven approach that emphasizes fundamental analysis and on-the-ground research. The company’s team of experienced analysts and portfolio managers conduct extensive research to identify attractive investment opportunities and construct portfolios that are diversified across geographies, property types, and investment styles.
Investment Products
Open-End Funds
Cohen and Steers offers a range of open-end funds that provide investors with exposure to various segments of the real estate market. These funds include:
| Fund Name | Asset Class | Objective |
|---|---|---|
| Global Realty Shares | Global Real Estate | Long-term growth of capital |
| Real Estate Securities Fund | U.S. Real Estate | Long-term capital appreciation |
| Preferred Securities and Income Fund | Preferred Securities | Current income and long-term capital appreciation |
Closed-End Funds
Cohen and Steers also offers a range of closed-end funds that invest in various segments of the real estate market. These funds are traded on stock exchanges and offer investors the potential for income and capital appreciation. Some of the closed-end funds offered by Cohen and Steers include:
| Fund Name | Asset Class | Objective |
|---|---|---|
| Cohen and Steers Infrastructure Fund | Infrastructure | Current income and long-term capital appreciation |
| Cohen and Steers Total Return Realty Fund | U.S. Real Estate | Current income and long-term capital appreciation |
| Cohen and Steers REIT and Preferred Income Fund | Real Estate and Preferred Securities | Current income with capital appreciation as a secondary objective |
Portfolio Holdings
Cohen and Steers’ investment approach is based on fundamental research and analysis, and the company’s portfolio holdings reflect this focus on quality and long-term growth potential. The company’s portfolios are diversified across geographies, property types, and investment styles, with a focus on high-quality companies with strong fundamentals.
As of June 30, 2021, some of the top holdings in Cohen and Steers’ open-end funds included:
- Prologis Inc.
- AvalonBay Communities Inc.
- Equinix Inc.
- American Tower Corp.
- Duke Realty Corp.
Meanwhile, some of the top holdings in the company’s closed-end funds included:
- NextEra Energy Inc.
- Brookfield Infrastructure Partners LP
- American Tower Corp.
- Equinix Inc.
- Waste Connections Inc.
Performance
Cohen and Steers has a long track record of delivering strong returns for its clients. Over the past 10 years, the company’s open-end funds have outperformed their respective benchmarks by an average of 2.1% per year, while the company’s closed-end funds have outperformed their respective benchmarks by an average of 3.7% per year.
Of course, past performance is no guarantee of future results, and investors should always conduct their own due diligence before making any investment decisions. However, Cohen and Steers’ strong track record of performance and its focus on quality and long-term growth potential make it an attractive option for investors looking to gain exposure to the real estate market.
Risks
Like any investment, investing in real estate securities carries certain risks that investors should be aware of. Some of the key risks associated with investing in Cohen and Steers’ funds include:
- Market Risk: The value of real estate securities can be affected by factors such as interest rates, economic conditions, and geopolitical events.
- Credit Risk: Real estate companies can default on their debt obligations, which can negatively impact the value of their securities.
- Liquidity Risk: Real estate securities may be less liquid than other types of investments, which can make it difficult to buy or sell them at a fair price.
Investors should carefully consider these risks before investing in any of Cohen and Steers’ funds.
Conclusion
Cohen and Steers Real Estate is one of the leading investment management firms in the real estate space, with a long track record of delivering strong returns for its clients. The company’s focus on quality and long-term growth potential, as well as its research-driven investment approach, make it an attractive option for investors looking to gain exposure to the real estate market.
Of course, investing in real estate securities carries certain risks, and investors should carefully consider these risks before making any investment decisions. However, for those investors who are willing to do their due diligence and take a long-term view, Cohen and Steers Real Estate may be an excellent choice.
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Learn about Cohen and Steers Real Estate, a leading investment management firm specializing in real estate securities with a proven track record of delivering strong returns for its clients.
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Cohen and Steers, real estate, investment management, real estate securities, portfolio holdings, open-end funds, closed-end funds, risks, performance
