UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
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Investment Company Act file number |
811-22455 | |||||||
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Cohen & Steers Select Preferred and Income Fund, Inc. | ||||||||
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(Exact name of registrant as specified in charter) | ||||||||
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280 Park Avenue New York, NY |
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10017 | ||||||
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(Address of principal executive offices) |
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(Zip code) | ||||||
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Tina M. Payne 280 Park Avenue New York, NY 10017 | ||||||||
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(Name and address of agent for service) | ||||||||
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Registrant’s telephone number, including area code: |
(212) 832-3232 |
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Date of fiscal year end: |
December 31 |
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Date of reporting period: |
March 31, 2013 |
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Item 1. Schedule of Investments
COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
March 28, 2013 (Unaudited)*
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|
|
Number |
|
Value |
| |
|
PREFERRED SECURITIES—$25 PAR VALUE 44.5% |
|
|
|
|
| |
|
BANKS 15.1% |
|
|
|
|
| |
|
Ally Financial, 7.35%, due 8/8/32(a) |
|
116,600 |
|
$ |
2,986,126 |
|
|
Ally Financial, 7.375%, due 12/16/44 |
|
72,000 |
|
1,815,840 |
| |
|
Ally Financial, 7.30%, due 3/9/31, (PINES) |
|
50,000 |
|
1,275,000 |
| |
|
Bank of America Corp., 7.25%, Series L ($1,000 Par Value)(Convertible) |
|
1,878 |
|
2,287,704 |
| |
|
CoBank ACB, 6.25%, 144A ($100 Par Value)(b) |
|
25,000 |
|
2,669,533 |
| |
|
Countrywide Capital IV, 6.75%, due 4/1/33 |
|
63,322 |
|
1,603,946 |
| |
|
Countrywide Capital V, 7.00%, due 11/1/36 |
|
164,579 |
|
4,204,993 |
| |
|
First Niagara Financial Group, 8.625%, Series B(a) |
|
80,000 |
|
2,350,400 |
| |
|
Huntington Bancshares, 8.50%, due 12/31/49, Series A ($1,000 Par Value)(Convertible)(a) |
|
4,048 |
|
5,209,776 |
| |
|
KeyCorp, 7.75%, due 12/31/49, Series A ($100 Par Value)(Convertible)(a) |
|
13,393 |
|
1,735,599 |
| |
|
PNC Financial Services Group, 6.125%, Series P(a) |
|
80,000 |
|
2,213,600 |
| |
|
PrivateBancorp, 7.125%, due 10/30/42 |
|
45,000 |
|
1,208,250 |
| |
|
US Bancorp, 6.50%, Series F(a) |
|
80,000 |
|
2,388,800 |
| |
|
Wells Fargo & Co., 7.50%, Series L ($1,000 Par Value)(Convertible)(a) |
|
6,520 |
|
8,402,650 |
| |
|
Zions Bancorp, 9.50%, Series C(a) |
|
102,004 |
|
2,636,803 |
| |
|
Zions Bancorp, 7.90%, Series F(a) |
|
176,458 |
|
5,009,643 |
| |
|
Zions Bancorp, 6.30%, Series G |
|
90,000 |
|
2,407,500 |
| |
|
|
|
|
|
50,406,163 |
| |
|
BANKS—FOREIGN 3.5% |
|
|
|
|
| |
|
Barclays Bank PLC, 7.75%, Series IV (United Kingdom)(a) |
|
88,139 |
|
2,260,765 |
| |
|
Deutsche Bank Contingent Capital Trust III, 7.60%(a) |
|
62,983 |
|
1,741,480 |
| |
|
National Westminster Bank PLC, 7.76%, Series C (United Kingdom)(a) |
|
112,226 |
|
2,875,230 |
| |
|
Royal Bank of Scotland Group PLC, 6.40%, Series M (United Kingdom) |
|
102,000 |
|
2,276,640 |
| |
|
Royal Bank of Scotland Group PLC, 6.35%, Series N (United Kingdom) |
|
114,862 |
|
2,549,937 |
| |
|
|
|
|
|
11,704,052 |
| |
|
ELECTRIC—INTEGRATED 1.7% |
|
|
|
|
| |
|
Duke Energy Corp., 5.125%, due 1/15/73 |
|
39,700 |
|
1,007,983 |
| |
|
Interstate Power & Light Co., 5.10%, Series D |
|
60,000 |
|
1,513,800 |
| |
|
NextEra Energy Capital Holdings, 5.70%, due 3/1/72, Series G(a) |
|
31,496 |
|
826,770 |
| |
|
|
|
Number |
|
Value |
| |
|
NextEra Energy Capital Holdings, 5.625%, due 6/15/72, Series H |
|
29,095 |
|
$ |
756,761 |
|
|
SCE Trust I, 5.625% |
|
60,000 |
|
1,577,400 |
| |
|
|
|
|
|
5,682,714 |
| |
|
FINANCE—INVESTMENT BANKER/BROKER 0.6% |
|
|
|
|
| |
|
Raymond James Financial, 6.90%, due 3/15/42 |
|
72,158 |
|
2,006,714 |
| |
|
|
|
|
|
|
| |
|
INDUSTRIALS—DIVERSIFIED MANUFACTURING 0.4% |
|
|
|
|
| |
|
Stanley Black & Decker, 5.75%, due 7/25/52 |
|
45,025 |
|
1,188,660 |
| |
|
|
|
|
|
|
| |
|
INSURANCE 8.3% |
|
|
|
|
| |
|
LIFE/HEALTH INSURANCE—FOREIGN 1.0% |
|
|
|
|
| |
|
Aegon NV, 6.875% (Netherlands) |
|
36,589 |
|
924,604 |
| |
|
Aegon NV, 7.25% (Netherlands) |
|
51,800 |
|
1,332,814 |
| |
|
Aegon NV, 8.00%, due 2/15/42 (Netherlands) |
|
36,530 |
|
1,048,411 |
| |
|
|
|
|
|
3,305,829 |
| |
|
MULTI-LINE 1.4% |
|
|
|
|
| |
|
Hartford Financial Services Group, 7.875%, due 4/15/42(a) |
|
160,000 |
|
4,816,000 |
| |
|
|
|
|
|
|
| |
|
MULTI-LINE—FOREIGN 2.9% |
|
|
|
|
| |
|
ING Groep N.V., 7.05% (Netherlands) |
|
119,064 |
|
3,032,560 |
| |
|
ING Groep N.V., 7.375% (Netherlands)(a) |
|
171,502 |
|
4,356,151 |
| |
|
ING Groep N.V., 8.50% (Netherlands)(a) |
|
92,789 |
|
2,417,154 |
| |
|
|
|
|
|
9,805,865 |
| |
|
REINSURANCE 0.5% |
|
|
|
|
| |
|
Reinsurance Group of America, 6.20%, due 9/15/42 |
|
60,000 |
|
1,633,800 |
| |
|
|
|
|
|
|
| |
|
REINSURANCE—FOREIGN 2.5% |
|
|
|
|
| |
|
Arch Capital Group Ltd., 6.75% (Bermuda) |
|
78,195 |
|
2,177,731 |
| |
|
Aspen Insurance Holdings Ltd., 7.25% (Bermuda) |
|
65,892 |
|
1,807,417 |
| |
|
Axis Capital Holdings Ltd., 6.875%, Series C (Bermuda) |
|
73,527 |
|
1,989,641 |
| |
|
Endurance Specialty Holdings Ltd., 7.50%, Series B (Bermuda) |
|
41,556 |
|
1,124,505 |
| |
|
Montpelier Re Holdings Ltd., 8.875% (Bermuda) |
|
41,600 |
|
1,175,200 |
| |
|
|
|
|
|
8,274,494 |
| |
|
TOTAL INSURANCE |
|
|
|
27,835,988 |
| |
|
|
|
|
|
|
| |
|
INTEGRATED TELECOMMUNICATIONS SERVICES 2.6% |
|
|
|
|
| |
|
Qwest Corp., 7.00%, due 4/1/52(a) |
|
114,879 |
|
3,081,055 |
| |
|
Qwest Corp., 7.375%, due 6/1/51(a) |
|
80,495 |
|
2,137,947 |
| |
|
|
|
Number |
|
Value |
| |
|
Telephone & Data Systems, 6.875%, due 11/15/59(a) |
|
127,131 |
|
$ |
3,316,848 |
|
|
|
|
|
|
8,535,850 |
| |
|
PIPELINES 0.5% |
|
|
|
|
| |
|
NuStar Logistics LP, 7.625%, due 1/15/43 |
|
59,800 |
|
1,603,238 |
| |
|
|
|
|
|
|
| |
|
REAL ESTATE 11.1% |
|
|
|
|
| |
|
DIVERSIFIED 2.9% |
|
|
|
|
| |
|
Cousins Properties, 7.50%, Series B(a) |
|
110,000 |
|
2,793,450 |
| |
|
DuPont Fabros Technology, 7.875%, Series A(a) |
|
103,254 |
|
2,780,630 |
| |
|
Retail Properties of America, 7.00% |
|
79,500 |
|
2,012,145 |
| |
|
Sovereign Real Estate Investment Trust, 12.00%, 144A ($1,000 Par Value)(b) |
|
1,500 |
|
1,928,670 |
| |
|
|
|
|
|
9,514,895 |
| |
|
HOTEL 0.9% |
|
|
|
|
| |
|
Hersha Hospitality Trust, 8.00%, Series B(a) |
|
70,969 |
|
1,865,066 |
| |
|
Pebblebrook Hotel Trust, 6.50%, Series C |
|
50,000 |
|
1,232,500 |
| |
|
|
|
|
|
3,097,566 |
| |
|
INDUSTRIALS 1.2% |
|
|
|
|
| |
|
First Potomac Realty Trust, 7.75%, Series A(a) |
|
120,000 |
|
3,120,000 |
| |
|
Monmouth Real Estate Investment Corp., 7.875%, Series B(c) |
|
37,500 |
|
992,250 |
| |
|
|
|
|
|
4,112,250 |
| |
|
MORTGAGE 0.3% |
|
|
|
|
| |
|
Gramercy Capital Corp., 8.125%, Series A |
|
33,000 |
|
1,095,270 |
| |
|
|
|
|
|
|
| |
|
OFFICE 1.2% |
|
|
|
|
| |
|
CommonWealth REIT, 6.50%, Series D (Convertible)(a) |
|
90,025 |
|
2,154,298 |
| |
|
Hudson Pacific Properties, 8.375%, Series B(a) |
|
70,000 |
|
1,881,250 |
| |
|
|
|
|
|
4,035,548 |
| |
|
RESIDENTIAL—MANUFACTURED HOME 0.8% |
|
|
|
|
| |
|
Equity Lifestyle Properties, 6.75%, Series C |
|
47,378 |
|
1,226,143 |
| |
|
UMH Properties, 8.25%, Series A |
|
50,000 |
|
1,330,000 |
| |
|
|
|
|
|
2,556,143 |
| |
|
SHOPPING CENTERS 3.8% |
|
|
|
|
| |
|
COMMUNITY CENTER 2.7% |
|
|
|
|
| |
|
Cedar Realty Trust, 7.25%, due 11/20/49, Series B |
|
68,900 |
|
1,732,835 |
| |
|
DDR Corp., 7.375%, Series H(a) |
|
180,000 |
|
4,539,600 |
| |
|
|
|
Number |
|
Value |
| |
|
Kite Realty Group Trust, 8.25%, Series A(a) |
|
100,000 |
|
$ |
2,594,000 |
|
|
|
|
|
|
8,866,435 |
| |
|
REGIONAL MALL 1.1% |
|
|
|
|
| |
|
CBL & Associates Properties, 7.375%, Series D(a) |
|
144,935 |
|
3,669,754 |
| |
|
TOTAL SHOPPING CENTERS |
|
|
|
12,536,189 |
| |
|
TOTAL REAL ESTATE |
|
|
|
36,947,861 |
| |
|
|
|
|
|
|
| |
|
TRANSPORT—MARINE 0.7% |
|
|
|
|
| |
|
Seaspan Corp., 9.50%, due 1/29/49, Series C (Hong Kong)(a) |
|
85,539 |
|
2,376,273 |
| |
|
TOTAL PREFERRED SECURITIES—$25 PAR VALUE |
|
|
|
148,287,513 |
| |
|
|
|
|
|
|
| |
|
PREFERRED SECURITIES—CAPITAL SECURITIES 88.0% |
|
|
|
|
| |
|
BANKS 22.9% |
|
|
|
|
| |
|
Citigroup, 5.95%(a) |
|
1,250,000 |
|
1,298,438 |
| |
|
Citigroup, 8.40%, due 4/29/49, Series E(c) |
|
3,987,000 |
|
4,514,313 |
| |
|
Citigroup Capital III, 7.625%, due 12/1/36(a) |
|
4,115,000 |
|
4,896,850 |
| |
|
CoBank ACB, 11.00%, Series C, 144A ($50 Par Value)(b),(d) |
|
100,000 |
|
5,140,630 |
| |
|
Countrywide Capital III, 8.05%, due 6/15/27, Series B(e) |
|
1,815,000 |
|
2,330,006 |
| |
|
Dresdner Funding Trust I, 8.151%, due 6/30/31, 144A(b) |
|
2,000,000 |
|
2,117,500 |
| |
|
Farm Credit Bank of Texas, 10.00%, due 12/15/20, Series I |
|
10,000 |
|
12,718,750 |
| |
|
Goldman Sachs Capital I, 6.345%, due 2/15/34 |
|
4,500,000 |
|
4,702,176 |
| |
|
Goldman Sachs Capital III, 4.00%, (FRN) |
|
6,870,000 |
|
5,727,862 |
| |
|
JP Morgan Chase & Co., 7.90%, Series I(a) |
|
13,000,000 |
|
14,950,637 |
| |
|
PNC Financial Services Group, 6.75%, due 7/29/49(a) |
|
4,500,000 |
|
5,170,320 |
| |
|
Regions Financial Corp., 7.375%, due 12/10/37(a) |
|
2,700,000 |
|
3,037,500 |
| |
|
Wells Fargo & Co., 7.98%, Series K(a) |
|
8,400,000 |
|
9,707,250 |
| |
|
|
|
|
|
76,312,232 |
| |
|
BANKS—FOREIGN 22.7% |
|
|
|
|
| |
|
Abbey National Capital Trust I, 8.963%, due 12/29/49(a) |
|
3,200,000 |
|
3,744,000 |
| |
|
Banco do Brasil SA/Cayman, 9.25%, 144A (Brazil)(b) |
|
6,500,000 |
|
7,897,500 |
| |
|
Bank of Ireland, 10.00%, due 7/30/16, Series EMTN (Ireland) |
|
1,000,000 |
|
1,320,947 |
| |
|
Barclays Bank PLC, 6.278%, due 12/31/49 (United Kingdom) |
|
2,000,000 |
|
1,938,434 |
| |
|
Barclays Bank PLC, 6.86%, due 12/31/49, 144A (United Kingdom)(b) |
|
2,297,000 |
|
2,440,563 |
| |
|
Barclays Bank PLC, 7.625%, due 11/21/22 (United Kingdom)(a) |
|
4,925,000 |
|
4,869,594 |
| |
|
|
|
Number |
|
Value |
| |
|
BNP Paribas, 7.195%, 144A (France)(a),(b) |
|
3,250,000 |
|
$ |
3,363,750 |
|
|
BPCE SA, 9.00%, (EUR) (France) |
|
900,000 |
|
1,214,810 |
| |
|
Claudius Ltd. (Credit Suisse), 7.875% (Switzerland) |
|
5,000,000 |
|
5,368,750 |
| |
|
HBOS Capital Funding LP, 6.85% (United Kingdom) |
|
5,000,000 |
|
4,763,660 |
| |
|
HSBC Capital Funding LP, 10.176%, 144A (United Kingdom)(a),(b) |
|
7,750,000 |
|
10,946,875 |
| |
|
LBG Capital No.1 PLC, 8.00%, 144A (United Kingdom)(b) |
|
4,000,000 |
|
4,295,916 |
| |
|
Rabobank Nederland, 8.40% (Netherlands) |
|
5,000,000 |
|
5,417,030 |
| |
|
Rabobank Nederland, 11.00%, due 6/29/49, 144A (Netherlands)(a),(b) |
|
3,350,000 |
|
4,508,527 |
| |
|
RBS Capital Trust II, 6.425% |
|
2,500,000 |
|
2,218,750 |
| |
|
Royal Bank of Scotland Group PLC, 5.50% (United Kingdom) (EUR) |
|
1,000,000 |
|
943,442 |
| |
|
SMFG Preferred Capital, 9.50%, due 7/29/49, 144A (FRN) (Cayman Islands)(a),(b) |
|
1,700,000 |
|
2,223,515 |
| |
|
Standard Chartered PLC, 7.014%, due 7/29/49, 144A (United Kingdom)(a),(b) |
|
3,000,000 |
|
3,210,759 |
| |
|
UBS AG, 7.625%, due 8/17/22 (Switzerland) |
|
4,500,000 |
|
5,037,151 |
| |
|
|
|
|
|
75,723,973 |
| |
|
ELECTRIC—INTEGRATED 0.7% |
|
|
|
|
| |
|
Electricite de France SA, 5.25%, 144A (FRN) (France)(b) |
|
2,250,000 |
|
2,239,486 |
| |
|
|
|
|
|
|
| |
|
FINANCE—DIVERSIFIED FINANCIAL SERVICES 5.4% |
|
|
|
|
| |
|
Aberdeen Asset Management PLC, 7.00% (United Kingdom) |
|
2,750,000 |
|
2,841,520 |
| |
|
General Electric Capital Corp., 7.125%, Series A(a) |
|
7,400,000 |
|
8,621,599 |
| |
|
General Electric Capital Corp., 6.25%, due 12/15/49, Series B |
|
5,900,000 |
|
6,487,369 |
| |
|
|
|
|
|
17,950,488 |
| |
|
INSURANCE 22.6% |
|
|
|
|
| |
|
LIFE/HEALTH INSURANCE 8.5% |
|
|
|
|
| |
|
American General Institutional Capital A, 7.57%, due 12/1/45, 144A(a),(b) |
|
5,200,000 |
|
6,604,000 |
| |
|
American General Institutional Capital B, 8.125%, due 3/15/46, 144A(a),(b) |
|
3,000,000 |
|
4,087,500 |
| |
|
Great-West Life & Annuity Insurance Co., 7.153%, due 5/16/46, 144A(a),(b) |
|
1,405,000 |
|
1,499,838 |
| |
|
MetLife Capital Trust IV, 7.875%, due 12/15/37, 144A(a),(b) |
|
6,450,000 |
|
8,143,125 |
| |
|
|
|
Number |
|
Value |
| |
|
MetLife Capital Trust X, 9.25%, due 4/8/38, 144A(a),(b) |
|
5,599,000 |
|
$ |
7,838,600 |
|
|
|
|
|
|
28,173,063 |
| |
|
LIFE/HEALTH INSURANCE—FOREIGN 1.0% |
|
|
|
|
| |
|
Prudential PLC, 7.75%, due 6/23/16 (United Kingdom)(a) |
|
3,150,000 |
|
3,403,969 |
| |
|
|
|
|
|
|
| |
|
MULTI-LINE 4.1% |
|
|
|
|
| |
|
American International Group, 8.175%, due 5/15/68, (FRN)(a) |
|
10,070,000 |
|
13,607,088 |
| |
|
|
|
|
|
|
| |
|
MULTI-LINE—FOREIGN 3.0% |
|
|
|
|
| |
|
Aviva PLC, 8.25% (United Kingdom) |
|
2,000,000 |
|
2,159,500 |
| |
|
AXA SA, 8.60%, due 12/15/30 (France)(a) |
|
2,000,000 |
|
2,571,026 |
| |
|
AXA SA, 6.379%, due 12/31/49, 144A (France)(a),(b) |
|
2,050,000 |
|
2,044,875 |
| |
|
AXA SA, 6.463%, 144A (France)(b) |
|
1,000,000 |
|
997,500 |
| |
|
Cloverie PLC, 8.25%, due 12/31/49 (Ireland) |
|
2,000,000 |
|
2,306,506 |
| |
|
|
|
|
|
10,079,407 |
| |
|
PROPERTY CASUALTY 1.1% |
|
|
|
|
| |
|
Liberty Mutual Group, 7.80%, due 3/15/37, 144A(a),(b) |
|
3,200,000 |
|
3,744,000 |
| |
|
|
|
|
|
|
| |
|
PROPERTY CASUALTY—FOREIGN 0.7% |
|
|
|
|
| |
|
Mitsui Sumitomo Insurance Co., Ltd., 7.00%, due 3/15/72, 144A (Japan)(a),(b) |
|
2,100,000 |
|
2,355,977 |
| |
|
|
|
|
|
|
| |
|
REINSURANCE—FOREIGN 4.2% |
|
|
|
|
| |
|
Aquarius + Investments PLC, 8.25% (Switzerland) |
|
2,510,000 |
|
2,719,033 |
| |
|
Catlin Insurance Co., 7.249%, due 12/31/49, 144A (Bermuda)(b) |
|
4,550,000 |
|
4,709,250 |
| |
|
QBE Capital Funding III Ltd., 7.25%, 144A (Australia)(a),(b) |
|
2,250,000 |
|
2,366,133 |
| |
|
Swiss Re Capital I LP, 6.854%, 144A (Switzerland)(b) |
|
1,000,000 |
|
1,063,500 |
| |
|
Swiss Reinsurance Co., Ltd., 7.635%, due 12/31/49, Series I (AUD) (Australia) |
|
3,000,000 |
|
3,173,333 |
| |
|
|
|
|
|
14,031,249 |
| |
|
TOTAL INSURANCE |
|
|
|
75,394,753 |
| |
|
|
|
|
|
|
| |
|
INTEGRATED TELECOMMUNICATIONS SERVICES 3.8% |
|
|
|
|
| |
|
Centaur Funding Corp., 9.08%, due 4/21/20, 144A(b) |
|
10,000 |
|
12,525,000 |
| |
|
|
|
|
|
|
| |
|
OIL & GAS EXPLORATION & PRODUCTION 0.6% |
|
|
|
|
| |
|
Origin Energy Finance Ltd., 7.875%, due 6/16/71 (Australia) (EUR) |
|
1,500,000 |
|
2,009,301 |
| |
|
|
|
|
|
|
| |
|
PIPELINES 4.6% |
|
|
|
|
| |
|
Enbridge Energy Partners LP, 8.05%, due 10/1/37(a) |
|
5,980,000 |
|
6,883,584 |
| |
|
|
|
Number |
|
Value |
| |
|
Enterprise Products Operating LLC, 7.034%, due 1/15/68, Series B |
|
2,500,000 |
|
$ |
2,902,995 |
|
|
Enterprise Products Operating LP, 8.375%, due 8/1/66(a) |
|
4,836,000 |
|
5,565,501 |
| |
|
|
|
|
|
15,352,080 |
| |
|
UTILITIES 4.7% |
|
|
|
|
| |
|
ELECTRIC UTILITIES 2.4% |
|
|
|
|
| |
|
FPL Group Capital, 7.30%, due 9/1/67, Series D(a) |
|
7,015,000 |
|
7,934,512 |
| |
|
|
|
|
|
|
| |
|
MULTI-UTILITIES 2.3% |
|
|
|
|
| |
|
Dominion Resources, 7.50%, due 6/30/66, Series A(a) |
|
3,900,000 |
|
4,332,143 |
| |
|
PPL Capital Funding, 6.70%, due 3/30/67, Series A(a) |
|
3,300,000 |
|
3,509,316 |
| |
|
|
|
|
|
7,841,459 |
| |
|
TOTAL UTILITIES |
|
|
|
15,775,971 |
| |
|
TOTAL PREFERRED SECURITIES—CAPITAL SECURITIES |
|
|
|
293,283,284 |
| |
|
|
|
Principal |
|
|
| |
|
CORPORATE BONDS 3.2% |
|
|
|
|
| |
|
INSURANCE—PROPERTY CASUALTY 1.7% |
|
|
|
|
| |
|
Liberty Mutual Insurance, 7.697%, due 10/15/97, 144A(a),(b) |
|
$ |
5,250,000 |
|
5,798,950 |
|
|
|
|
|
|
|
|
|
|
INTEGRATED TELECOMMUNICATIONS SERVICES 1.5% |
|
|
|
|
| |
|
CenturyLink, 7.65%, due 3/15/42(d) |
|
2,250,000 |
|
2,180,237 |
| |
|
Citizens Communications Co., 9.00%, due 8/15/31(a) |
|
2,625,000 |
|
2,723,437 |
| |
|
|
|
|
|
4,903,674 |
| |
|
TOTAL CORPORATE BONDS |
|
|
|
10,702,624 |
| |
|
|
|
|
|
Number |
|
|
| |
|
SHORT-TERM INVESTMENTS 0.6% |
|
|
|
|
|
|
| |
|
MONEY MARKET FUNDS |
|
|
|
|
|
|
| |
|
BlackRock Liquidity Funds: FedFund, 0.01%(f) |
|
|
|
950,102 |
|
$ |
950,102 |
|
|
Federated Government Obligations Fund, 0.01%(f) |
|
|
|
950,132 |
|
950,132 |
| |
|
TOTAL SHORT-TERM INVESTMENTS |
|
|
|
|
|
$ |
1,900,234 |
|
|
|
|
|
|
|
|
|
| |
|
TOTAL INVESTMENTS (Identified cost—$408,653,396) |
|
136.3 |
% |
|
|
454,173,655 |
| |
|
|
|
|
|
|
|
|
| |
|
LIABILITIES IN EXCESS OF OTHER ASSETS |
|
(36.3 |
) |
|
|
(120,931,654 |
) | |
|
|
|
|
|
|
|
|
| |
|
NET ASSETS (Equivalent to $27.73 per share based on 12,016,087 shares of common stock outstanding) |
|
100.0 |
% |
|
|
$ |
333,242,001 |
|
Note: Percentages indicated are based on the net assets of the Fund.
|
* |
March 28, 2013 represents the last business day of the Fund’s quarterly period. See Note 1 of the accompanying notes to the Financial Statements. |
|
(a) |
All or a portion of the security is pledged as collateral in connection with the Fund’s revolving credit agreement. $176,738,037 in aggregate has been pledged as collateral. |
|
(b) |
Resale is restricted to qualified institutional investors. Aggregate holdings equal 35.0% of the net assets of the Fund, of which 0.0% are illiquid. |
|
(c) |
Illiquid security. Aggregate holdings equal 1.7% of the net assets of the Fund. |
|
(d) |
A portion of the security is segregated as collateral for interest rate swap transactions. $2,254,152 in aggregate has been segregated as collateral. |
|
(e) |
A portion of the security is segregated as collateral for open forward foreign currency exchange contracts. $898,625 in aggregate has been segregated as collateral. |
|
(f) |
Rate quoted represents the seven-day yield of the fund. |
Interest rate swaps outstanding at March 28, 2013 were as follows:
|
Counterparty |
|
Notional |
|
Fixed |
|
Floating |
|
Termination Date |
|
Unrealized |
| ||
|
Royal Bank of Canada |
|
$ |
38,700,000 |
|
0.855 |
% |
0.204 |
% |
October 30, 2017 |
|
$ |
(184,725 |
) |
|
Royal Bank of Canada |
|
38,700,000 |
|
1.087 |
% |
0.204 |
% |
October 29, 2018 |
|
(162,719 |
) | ||
|
Royal Bank of Canada |
|
38,700,000 |
|
1.309 |
% |
0.204 |
% |
October 29, 2019 |
|
(84,680 |
) | ||
|
|
|
|
|
|
|
|
|
|
|
$ |
(432,124 |
) | |
(a) Based on LIBOR (London Interbank Offered Rate). Represents rates in effect at March 28, 2013.
Forward foreign currency exchange contracts outstanding at March 28, 2013 were as follows:
|
Counterparty |
|
Contracts to |
|
In Exchange |
|
Settlement |
|
Unrealized |
| |||||
|
Brown Brothers, Harriman |
|
AUD |
|
3,073,320 |
|
USD |
|
3,139,565 |
|
4/3/13 |
|
$ |
(60,223 |
) |
|
Brown Brothers, Harriman |
|
AUD |
|
3,043,680 |
|
USD |
|
3,167,049 |
|
5/2/13 |
|
4,977 |
| |
|
Brown Brothers, Harriman |
|
EUR |
|
6,123,176 |
|
USD |
|
8,007,583 |
|
4/3/13 |
|
158,585 |
| |
|
Brown Brothers, Harriman |
|
USD |
|
373,477 |
|
EUR |
|
288,328 |
|
4/3/13 |
|
(3,883 |
) | |
|
Brown Brothers, Harriman |
|
EUR |
|
392,113 |
|
USD |
|
507,771 |
|
4/3/13 |
|
5,140 |
| |
|
Brown Brothers, Harriman |
|
USD |
|
738,971 |
|
EUR |
|
573,321 |
|
4/3/13 |
|
(4,059 |
) | |
|
Brown Brothers, Harriman |
|
USD |
|
789,307 |
|
EUR |
|
606,329 |
|
4/3/13 |
|
(12,084 |
) | |
|
Brown Brothers, Harriman |
|
USD |
|
967,101 |
|
EUR |
|
743,678 |
|
4/3/13 |
|
(13,817 |
) | |
|
Brown Brothers, Harriman |
|
USD |
|
3,204,517 |
|
AUD |
|
3,073,320 |
|
4/3/13 |
|
(4,728 |
) | |
|
Brown Brothers, Harriman |
|
EUR |
|
4,295,025 |
|
USD |
|
5,515,156 |
|
5/3/13 |
|
8,501 |
| |
|
Brown Brothers, Harriman |
|
USD |
|
5,525,434 |
|
EUR |
|
4,303,633 |
|
4/3/13 |
|
(8,819 |
) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
69,590 |
|
|
|
Glossary of Portfolio Abbreviations | |
|
|
| |
|
AUD |
|
Australian Dollar |
|
EUR |
|
Euro Currency |
|
FRN |
|
Floating Rate Note |
|
PINES |
|
Public Income Notes |
|
REIT |
|
Real Estate Investment Trust |
|
USD |
|
United States Dollar |
Cohen & Steers Select Preferred and Income Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Note 1. Quarterly Period
Since March 28, 2013 represents the last day during the Fund’s quarterly period on which the New York Stock Exchange was open for trading, the Fund’s financial statements have been presented through that date to maintain consistency with the Fund’s net asset value calculations used for shareholder transactions.
Note 2. 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. Forward contracts are valued at the prevailing forward exchange rate.
Securities not listed on the NYSE but listed on other domestic or foreign securities exchanges 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 foreign securities may be fair valued pursuant to procedures established by the Board of Directors.
Readily marketable securities traded in the over-the-counter market, including listed securities whose primary market is believed by Cohen & Steers Capital Management, Inc. (the investment manager) to be over-the-counter, are valued at the last sale price on the valuation date as reported by sources deemed appropriate by the Board of Directors to reflect their fair market value. 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. However, certain fixed-income securities may be valued on the basis of prices provided by a pricing service when such prices are believed by the investment manager, pursuant to delegation by the Board of Directors, to reflect the fair market value of such securities. Interest rate swaps are valued utilizing quotes received from an outside pricing service.
Short-term debt securities with a maturity date of 60 days or less are valued at amortized cost, which approximates value. Investments in open-end mutual funds are valued at their closing net asset value.
The policies and procedures approved by the Fund’s Board of Directors delegate authority to make fair value determinations to the investment manager, subject to the oversight of the Board of Directors. The investment manager has established a valuation committee (Valuation Committee) to administer, implement and oversee the fair valuation process according to the policies and procedures approved annually by the Board of Directors. Among other things, these procedures
Cohen & Steers Select Preferred and Income Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities for which market prices are unavailable, or securities for which the investment manager determines that the bid and/or ask price does not reflect market value, will be valued at fair value, as determined in good faith by the Valuation Committee, pursuant to procedures approved by the Fund’s Board of Directors. Circumstances in which market prices may be unavailable include, but are not limited to, when trading in a security is suspended, the exchange on which the security is traded is subject to an unscheduled close or disruption or material events occur after the close of the exchange on which the security is principally traded. In these circumstances, the Fund determines fair value in a manner that fairly reflects the market value of the security on the valuation date based on consideration of any information or factors it deems appropriate. These may include, but are not limited to, recent transactions in comparable securities, information relating to the specific security and developments in the markets.
Foreign equity fair value pricing procedures utilized by the Fund may cause certain foreign securities to be fair valued on the basis of fair value factors provided by a pricing service to reflect any significant market movements between the time the Fund values such securities and the earlier closing of foreign markets.
The Fund’s use of fair value pricing may cause the net asset value of Fund shares to differ from the net asset value that would be calculated using market quotations. Fair value pricing involves subjective judgments and it is possible that the fair value determined for a security may be materially different than the value that could be realized upon the sale of that security.
Fair value is defined as the price that the Fund would expect to receive upon the sale of an investment or expect to pay to transfer a liability in an orderly transaction with an independent buyer in the principal market or, in the absence of a principal market, the most advantageous market for the investment or liability. The hierarchy of inputs that are used in determining the fair value of the Fund’s investments is summarized below.
· Level 1 — quoted prices in active markets for identical investments
· Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.)
· Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing the transfer at the end of the period in which the underlying event causing the movement occurred. Changes in valuation techniques may result in transfers into or out of an
Cohen & Steers Select Preferred and Income Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
assigned level within the disclosure hierarchy. There were no transfers between Level 1 and Level 2 securities during the period ended March 28, 2013.
The following is a summary of the inputs used as of March 28, 2013 in valuing the Fund’s investments carried at value:
|
|
|
Total |
|
Quoted Prices In |
|
Other |
|
Significant |
| ||||
|
Preferred Securities - $25 Par Value - Banks |
|
$ |
50,406,163 |
|
$ |
47,736,630 |
|
$ |
2,669,533 |
|
$ |
— |
|
|
Preferred Securities - $25 Par Value - Real Estate - Diversified |
|
9,514,895 |
|
7,586,225 |
|
1,928,670 |
|
— |
| ||||
|
Preferred Securities - $25 Par Value - Other Industries |
|
88,366,455 |
|
88,366,455 |
|
— |
|
— |
| ||||
|
Preferred Securities - Capital Securities - Banks |
|
76,312,232 |
|
— |
|
63,593,482 |
|
12,718,750 |
(b) | ||||
|
Preferred Securities - Capital Securities - Other Industries |
|
216,971,052 |
|
— |
|
216,971,052 |
|
— |
| ||||
|
Corporate Bonds |
|
10,702,624 |
|
— |
|
10,702,624 |
|
— |
| ||||
|
Money Market Funds |
|
1,900,234 |
|
— |
|
1,900,234 |
|
— |
| ||||
|
Total Investments(c) |
|
$ |
454,173,655 |
|
$ |
143,689,310 |
|
$ |
297,765,595 |
|
$ |
12,718,750 |
|
|
Forward foreign currency exchange contracts |
|
177,203 |
|
— |
|
177,203 |
|
— |
| ||||
|
Total Appreciation in Other Financial Instruments(c) |
|
$ |
177,203 |
|
$ |
— |
|
$ |
177,203 |
|
$ |
— |
|
|
Interest rate swaps |
|
(432,124 |
) |
— |
|
(432,124 |
) |
— |
| ||||
|
Forward foreign currency exchange contracts |
|
(107,613 |
) |
— |
|
(107,613 |
) |
— |
| ||||
|
Total Depreciation in Other Financial Instruments(c) |
|
$ |
(539,737 |
) |
$ |
— |
|
$ |
(539,737 |
) |
$ |
— |
|
(a) Certain of the Fund’s investments are categorized as Level 3 and were valued utilizing third party pricing information without adjustment. Such valuations are based on significant unobservable inputs. A change in the significant unobservable inputs could result in a significantly lower or higher value in such Level 3 investments.
(b) Valued by a pricing service which utilized independent broker quotes.
(c) Portfolio holdings are disclosed individually on the Schedule of Investments.
Following is a reconciliation of investments for which significant unobservable inputs (Level 3) were used in determining fair value:
Cohen & Steers Select Preferred and Income Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
|
|
|
Investments |
| |
|
Balance as of December 31, 2012 |
|
$ |
12,484,375 |
|
|
Change in unrealized appreciation |
|
234,375 |
| |
|
Balance as of March 28, 2013 |
|
$ |
12,718,750 |
|
The change in unrealized appreciation/(depreciation) attributable to securities owned on March 28, 2013 which were valued using significant unobservable inputs (Level 3) amounted to $234,375.
Note 3. Derivative Instruments
The following is a summary of the Fund’s derivative instruments as of March 28, 2013:
|
Interest rate swaps |
|
$ |
(432,124 |
) |
|
Forward foreign currency exchange contracts |
|
69,590 |
| |
|
|
|
$ |
(362,534 |
) |
The balance of outstanding interest rate swaps at March 28, 2013 is representative of the volume outstanding during the period ended March 28, 2013. The following summarizes the volume of the Fund’s forward foreign currency exchange contracts activity during the period ended March 28, 2013:
|
|
|
Forward Foreign |
| |
|
Average Notional Balance |
|
$ |
11,117,473 |
|
|
Ending Notional Balance |
|
8,682,205 |
| |
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 foreign forward 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 foreign currency translations. 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 foreign currency transactions. 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.
Cohen & Steers Select Preferred and Income Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Forward foreign currency exchange contracts involve elements of market risk in excess of the amounts reflected on the Schedule of Investments. 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.
Interest Rate Swaps: The Fund uses interest rate swaps in connection with borrowing under its credit agreement. The interest rate swaps are intended to reduce interest rate risk by countering the effect that an increase in short-term interest rates could have on the performance of the Fund’s common shares as a result of the floating rate structure of interest owed pursuant to the credit agreement. In these interest rate swaps, the Fund agrees to pay the other party to the interest rate swap (which is known as the counterparty) a fixed rate payment in exchange for the counterparty’s agreement to pay the Fund a variable rate payment that is intended to approximate the Fund’s variable rate payment obligation on the credit agreement. The payment obligation is based on the notional amount of the swap. Depending on the state of interest rates in general, the use of interest rate swaps could enhance or harm the overall performance of the common shares. The market value of interest rate swaps is based on pricing models that consider the time value of money, volatility, the current market and contractual prices of the underlying financial instrument. Unrealized appreciation is reported as an asset and unrealized depreciation is reported as a liability. The change in value of swaps, including the accrual of periodic amounts of interest to be paid or received on swaps, is reported as unrealized appreciation or depreciation. A realized gain or loss is recorded upon payment or receipt of a periodic payment or termination of a swap agreement. 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 Schedule of Investments. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life, to the extent that such amount is positive.
For each counterparty, the Fund entered into an International Swap and Derivatives Association Inc. Master Agreement and related annexes thereto (“ISDA”) which sets forth the general terms and conditions of the Fund’s swap transactions.
Note 4. Income Tax Information
As of March 28, 2013, the federal tax cost and unrealized appreciation and depreciation in value of securities held were as follows:
|
Cost for federal income tax purposes |
|
$ |
408,653,396 |
|
|
Gross unrealized appreciation |
|
$ |
46,343,166 |
|
|
Gross unrealized depreciation |
|
(822,907 |
) | |
|
Net unrealized appreciation |
|
$ |
45,520,259 |
|
Item 2. Controls and Procedures
(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of these disclosure controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act as of a date within 90 days of the filing of this report.
(b) During the last fiscal quarter, there were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits.
(a) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.
|
By: |
/s/ Adam M. Derechin |
|
|
|
Name: Adam M. Derechin |
|
|
|
Title: President |
|
|
|
|
|
|
|
Date: May 28, 2013 |
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
By: |
/s/ Adam M. Derechin |
|
By: |
/s/ James Giallanza |
|
|
Name: Adam M. Derechin |
|
|
Name: James Giallanza |
|
|
Title: President and Principal Executive Officer |
|
|
Title: Treasurer and Principal Financial Officer |
|
|
|
|
|
|
|
|
Date: May 28, 2013 |
|
|
|