SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
Filed by the Registrant x Filed by a Party other than the Registrant ¨
Check the appropriate box:
¨ Preliminary Proxy Statement
¨ Confidential, For Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
¨ Definitive Proxy Statement
x Definitive Additional Materials
¨ Soliciting Material Under Rule 14a-12
Cohen & Steers Select Utility Fund, Inc.
(Name of Registrant as Specified in Its Charter)
(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)
| Payment of Filing Fee (Check the appropriate box): | ||
| x |
No fee required. | |
| ¨ |
Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11. | |
| (1) Title of each class of securities to which transaction applies:
| ||
| (2) Aggregate number of securities to which transaction applies:
| ||
| (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
| ||
| (4) Proposed maximum aggregate value of transaction:
| ||
| (5) Total fee paid:
| ||
| ¨ |
Fee paid previously with preliminary materials. | |
| ¨ |
Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. | |
| (1) Amount Previously Paid:
| ||
| (2) Form, Schedule or Registration Statement No.:
| ||
| (3) Filing Party:
| ||
| (4) Date Filed:
| ||
| Cohen & Steers, Inc. 280 Park Avenue New York, NY 10017-1216 Tel (212) 832-3232 |
 |
FOR IMMEDIATE RELEASE
ISS Governance Services Recommends Shareholders
of Cohen & Steers Select Utility Fund Vote “FOR”
Re-election of the Board’s Directors
NEW YORK, March 20, 2008—ISS Governance Services, the leading independent proxy advisory firm, has recommended that shareholders of Cohen & Steers Select Utility Fund, Inc. (NYSE: UTF) vote the WHITE proxy card to re-elect the board’s three nominees for a three-year term: Richard E. Kroon, Willard H. Smith Jr. and Bonnie Cohen (not related to Cohen & Steers co-chairman and co-chief executive officer Martin Cohen). Each nominee has been a director since the fund’s inception in 2004. The fund will hold its annual shareholders meeting at 10 a.m. Eastern Time on Tuesday, April 1, 2008 at Cohen & Steers’ headquarters at 280 Park Avenue, New York, NY.
In reaching its decision to support the existing board, ISS concluded that “the increases to the fund’s distribution level each year since [it] was launched proves the board has taken specific actions to increase the distribution to shareholders. Moreover, these steps have helped reduce the discount of the fund. Additionally, the fund has outperformed its benchmark index. As such, ISS recommends shareholders vote FOR management’s nominees.”
ISS also cited the fund’s attempt to reduce the market discount to NAV by filing for a closed-end managed distribution order in 2004 and increasing the fund’s distribution level each year since the fund was launched. It noted further that the fund has had strong NAV performance. ISS further noted that, “according to Morningstar, the fund outperformed the S&P 1500 Utilities Index and the S&P 500 Index for the one- and three-year periods ended December 31, 2007.1 In addition, the one-year performance of the fund as of March 18, 2008 ranked first in the fund’s peer group,2 according to Morningstar.”
“I am pleased that ISS has recommended that the board nominees be re-elected” said Martin Cohen. “As ISS noted, the fund traded at a discount of 11.4% when the board filed for the managed distribution order in December 2004. The discount to NAV on January 8, 2008 was 5.3%, and at market close on March 19, 2008 it was 6.4%. ISS concluded that, as such, it believes the incumbent board has taken steps to reduce the NAV discount.”
1 Total returns as of December 31, 2007, based on market price. The performance data quoted represent past performance. Past performance is no guarantee of future results. The investment return will vary and the principal value of an investment will fluctuate and shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. During certain of the periods presented, the advisor has waived fees. Absent such waivers, returns would have been lower. Since inception 3/30/2004.
2 At February 29, 2008, there were eight funds in the peer group.
The current board of directors has increased the distribution level five times, for a total of 118%, since the fund’s inception in March 2004. That rate is now equal to $2.22 per share—an annualized yield of 9.7% based on its closing price on March 19, 2008. The one-year market return as of December 31, 2007 was 25.3% and the three-year annualized return was 20.6%.
Mr. Cohen added that the directors have approved additional investment strategies designed to increase the fund’s income and have fully supported management’s build-out of a dedicated team to further enhance performance, and that the fund has been successful in meeting its investment objective for shareholders.
UTF’s investment objective is to seek a high level of after-tax total return through investment in utility securities with an emphasis on current income. It invests primarily in common stocks, preferred securities and other equity securities issued by utility companies.
In supporting the board, ISS rejected the nominees of hedge fund speculator Arthur Lipson, a managing member of Western Investment LLC.
About Cohen & Steers
Cohen & Steers Capital Management, Inc. is a manager of high-income equity portfolios specializing in U.S. REITs, international real estate securities, preferred securities, utilities and infrastructure, and large cap value stocks. Headquartered in New York City, with offices in Brussels, Hong Kong, London and Seattle, the company serves individual and institutional investors through a wide range of open-end mutual funds, closed-end funds and institutional separate accounts.
Forward Looking Statements
This press release and other statements that Cohen & Steers may make may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect the company’s current views with respect to, among other things, its operations and financial performance. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative versions of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties.
Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.