N-Q 1 d428166dnq.htm COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC. Cohen & Steers Select Preferred and Income Fund, Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT COMPANY

Investment Company Act file number:    811-22455                                 

Cohen & Steers Select Preferred and Income Fund, Inc.

 

Exact Name of Registrant (as specified in charter):

280 Park Avenue New York, NY 10017

 

Address of Principal Executive Office:

Dana DeVivo

280 Park Avenue

New York, NY 10017

 

Name and address of agent for service:

Registrant telephone number, including area code:    (212) 832-3232                                

Date of fiscal year end:    December 31                                

Date of reporting period:    September 30, 2018                                

 

 

 

Item 1. Schedule of Investments

 

 

 

COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

SCHEDULE OF INVESTMENTS

September 30, 2018 (Unaudited)

 

                                                                       
                          Shares      Value  

EXCHANGE-TRADED FUNDS—U.S. EQUITY

      1.7 %      

Invesco Preferred ETF

 

     117,410      $ 1,681,311  

iShares US Preferred Stock ETF

 

     95,000        3,527,350  
       

 

 

  

TOTAL EXCHANGE-TRADED FUNDS
(Identified cost—$5,228,258)

           5,208,661  
       

 

 

  

PREFERRED SECURITIES—$25 PAR VALUE

      30.8 %      

BANKS

      10.3 %      

Bank of America Corp., 6.20%, Series CC(a)

 

     69,634        1,803,521  

Bank of America Corp., 6.00%, Series GG(a)

 

     115,700        3,008,200  

Bank of America Corp., 5.875%, Series HH(a)

 

     123,000        3,136,500  

Bank of America Corp., 6.50%, Series Y(a)

 

     49,299        1,284,239  

Citigroup, Inc., 7.125% to 9/30/23, Series J(a),(b)

 

     39,953        1,115,088  

Citigroup, Inc., 6.875% to 11/15/23, Series K(a),(b)

 

     30,900        857,475  

Citigroup, Inc., 6.30%, Series S(a)

 

     102,777        2,678,369  

GMAC Capital Trust I, 8.099%, (3 Month US LIBOR + 5.785%), due 2/15/40, Series 2 (TruPS) (FRN)(c)

 

     198,646        5,224,390  

Huntington Bancshares, Inc., 6.25%, Series D(a)

 

     59,156        1,522,675  

JPMorgan Chase & Co., 5.75%, Series DD(a)

 

     24,900        630,219  

JPMorgan Chase & Co., 6.125%, Series Y(a)

 

     55,000        1,417,900  

New York Community Bancorp, Inc., 6.375% to 3/17/27, Series A(a),(b)

 

     47,509        1,268,490  

Regions Financial Corp., 6.375% to 9/15/24, Series B(a),(b)

 

     46,629        1,236,135  

Synovus Financial Corp., 6.30% to 6/21/23, Series D(a),(b)

 

     44,000        1,153,680  

TCF Financial Corp., 5.70%, Series C(a)

 

     82,438        1,985,931  

US Bancorp, 5.50%, Series K(a)

 

     68,175        1,713,238  

Wells Fargo & Co., 5.625%, Series Y(a)

 

     69,875        1,746,875  
       

 

 

  
          31,782,925  
       

 

 

  

ELECTRIC

      2.8 %      

INTEGRATED ELECTRIC

      1.3 %      

DTE Energy Co., 5.375%, due 6/1/76, Series B

 

     51,859        1,239,430  

Integrys Holdings, Inc., 6.00% to 8/1/23, due 8/1/73(b)

 

     101,232        2,639,624  
       

 

 

  
          3,879,054  
       

 

 

  

REGULATED ELECTRIC

      1.5 %      

CMS Energy Corp., 5.875%, due 10/15/78

 

     21,125        527,333  

Southern Co./The, 6.25%, due 10/15/75

 

     159,308        4,119,705  
       

 

 

  
          4,647,038  
       

 

 

  

TOTAL ELECTRIC

           8,526,092  
       

 

 

  

 

1

 

 

                                                                       
                          Shares      Value  

FINANCIAL

      5.4 %      

DIVERSIFIED FINANCIAL SERVICES

      1.9 %      

Apollo Global Management LLC, 6.375%, Series B(a)

 

     48,625      $ 1,207,845  

KKR & Co., Inc., 6.75%, Series A(a)

 

     88,000        2,314,400  

Oaktree Capital Group LLC, 6.55%, Series B(a)

 

     59,000        1,467,330  

Stifel Financial Corp., 6.25%, Series A(a)

 

     42,325        1,070,399  
       

 

 

  
          6,059,974  
       

 

 

  

INVESTMENT BANKER/BROKER

      3.5 %      

Carlyle Group LP/The, 5.875%, Series A(a)

 

     64,800        1,467,072  

Charles Schwab Corp./The, 5.95%, Series D(a)

 

     66,145        1,685,374  

Morgan Stanley, 6.875% to 1/15/24, Series F(a),(b)

 

     115,689        3,167,565  

Morgan Stanley, 6.375% to 10/15/24, Series I(a),(b)

 

     89,337        2,387,085  

Morgan Stanley, 5.85% to 4/15/27, Series K(a),(b)

 

     79,700        2,026,771  
       

 

 

  
          10,733,867  
       

 

 

  

TOTAL FINANCIAL

           16,793,841  
       

 

 

  

INDUSTRIALS—CHEMICALS

      1.8 %      

CHS, Inc., 7.10% to 3/31/24, Series 2(a),(b)

 

     80,171        2,163,014  

CHS, Inc., 6.75% to 9/30/24, Series 3(a),(b)

 

     63,597        1,668,149  

CHS, Inc., 7.50%, Series 4(a)

 

     64,655        1,767,021  
       

 

 

  
          5,598,184  
       

 

 

  

INSURANCE

      5.3 %      

LIFE/HEALTH INSURANCE

      0.9 %      

MetLife, Inc., 5.625%, Series E(a)

 

     69,016        1,739,203  

Prudential Financial, Inc., 5.625%, due 8/15/58

 

     46,000        1,139,420  
       

 

 

  
          2,878,623  
       

 

 

  

MULTI-LINE

      1.1 %      

Allstate Corp., 5.625%, Series G(a)

 

     35,274        881,145  

American Financial Group, Inc., 6.25%, due 9/30/54

 

     8,507        218,630  

WR Berkley Corp., 5.75%, due 6/1/56

 

     89,350        2,175,672  
       

 

 

  
          3,275,447  
       

 

 

  

MULTI-LINE—FOREIGN

      0.6 %      

PartnerRe Ltd., 6.50%, Series G (Bermuda)(a)

 

     76,959        2,001,704  
       

 

 

  

PROPERTY CASUALTY—FOREIGN

      1.4 %      

Enstar Group Ltd., 7.00% to 9/1/28, Series D (Bermuda)(a),(b)

 

     79,150        2,089,560  

Validus Holdings Ltd., 5.875%, Series A (Bermuda)(a)

 

     20,308        530,039  

Validus Holdings Ltd., 5.80%, Series B (Bermuda)(a)

 

     64,597        1,685,982  
       

 

 

  
          4,305,581  
       

 

 

  

 

2

 

 

                                                                       
                          Shares      Value  

REINSURANCE

      0.2 %      

Reinsurance Group of America, Inc., 5.75% to 6/15/26, due 6/15/56(b)

 

     26,337      $ 670,803  
       

 

 

  

REINSURANCE—FOREIGN

      1.1 %      

Arch Capital Group Ltd., 5.25%, Series E (Bermuda)(a)

 

     3,385        77,889  

Arch Capital Group Ltd., 5.45%, Series F (Bermuda)(a)

 

     53,720        1,266,180  

RenaissanceRe Holdings Ltd., 5.75%, Series F (Bermuda)(a)

 

     82,948        2,067,894  
       

 

 

  
          3,411,963  
       

 

 

  

TOTAL INSURANCE

           16,544,121  
       

 

 

  

INTEGRATED TELECOMMUNICATIONS SERVICES

      0.4 %      

AT&T, Inc., 5.625%, due 8/1/67

 

     50,000        1,238,000  
       

 

 

  

PIPELINES

      1.5 %      

Enbridge, Inc., 6.375% to 4/15/23, due 4/15/78, Series B (Canada)(b)

 

     101,200        2,554,288  

Energy Transfer Partners LP, 7.625% to 8/15/23, Series D(a),(b)

 

     83,500        2,160,145  
       

 

 

  
          4,714,433  
       

 

 

  

REAL ESTATE

      1.8 %      

NET LEASE

      1.0 %      

VEREIT, Inc., 6.70%, Series F(a)

 

     118,947        2,955,833  
       

 

 

  

RESIDENTIAL

      0.4 %      

American Homes 4 Rent, 6.25%, Series H(a)

 

     49,831        1,256,240  
       

 

 

  

SPECIALTY

      0.4 %      

QTS Realty Trust, Inc., 7.125%, Series A(a)

 

     48,450        1,234,506  
       

 

 

  

TOTAL REAL ESTATE

           5,446,579  
       

 

 

  

TECHNOLOGY—SOFTWARE

      0.5 %      

eBay, Inc., 6.00%, due 2/1/56

 

     58,356        1,531,261  
       

 

 

  

UTILITIES

      1.0 %      

SCE Trust IV, 5.375% to 9/15/25, Series J(a),(b)

 

     46,177        1,125,334  

SCE Trust V, 5.45% to 3/15/26, Series K(a),(b)

 

     47,242        1,166,405  

SCE Trust VI, 5.00%(a)

 

     43,544        940,550  
       

 

 

  
          3,232,289  
       

 

 

  

TOTAL PREFERRED SECURITIES—$25 PAR VALUE
(Identified cost—$93,458,935)

 

        95,407,725  
       

 

 

  

 

3

 

 

                                                                       
                          Principal
Amount		     Value  

PREFERRED SECURITIES—CAPITAL SECURITIES

      104.1 %     

BANKS

      25.5 %     

AgriBank FCB, 6.875% to 1/1/24(a),(b)

 

     26,000 †    $ 2,782,000  

Bank of America Corp., 6.10% to 3/17/25, Series AA(a),(b)

 

   $ 1,500,000       1,575,000  

Bank of America Corp., 6.25% to 9/5/24, Series X(a),(b)

 

     2,900,000       3,063,125  

Bank of America Corp., 6.50% to 10/23/24, Series Z(a),(b)

 

     5,314,000       5,745,762  

Citigroup Capital III, 7.625%, due 12/1/36

 

     4,115,000       5,233,407  

Citigroup, Inc., 5.90% to 2/15/23(a),(b)

 

     1,415,000       1,450,375  

Citigroup, Inc., 6.125% to 11/15/20, Series R(a),(b)

 

     3,276,000       3,417,278  

Citigroup, Inc., 6.25% to 8/15/26, Series T(a),(b)

 

     2,205,000       2,304,225  

CoBank ACB, 6.25% to 10/1/22, Series F(a),(b)

 

     25,000 †      2,612,500  

CoBank ACB, 6.125%, Series G(a)

 

     25,000 †      2,512,500  

CoBank ACB, 6.25% to 10/1/26, Series I(a),(b)

 

     2,734,000       2,911,710  

Countrywide Capital III, 8.05%, due 6/15/27, Series B

 

     1,815,000       2,236,020  

Farm Credit Bank of Texas, 6.75% to 9/15/23, 144A(a),(b),(d)

 

     40,000 †      4,300,000  

Farm Credit Bank of Texas, 10.00%, Series I(a)

 

     10,000 †      11,450,000  

JPMorgan Chase & Co., 5.809%, (3 Month US LIBOR + 3.47%),
Series I (FRN)(a),(c)

 

     2,193,000       2,205,062  

JPMorgan Chase & Co., 6.75% to 2/1/24, Series S(a),(b)

 

     6,117,000       6,682,822  

JPMorgan Chase & Co., 6.10% to 10/1/24, Series X(a),(b)

 

     1,260,000       1,305,675  

PNC Financial Services Group, Inc., 6.75% to 8/1/21(a),(b)

 

     3,250,000       3,519,750  

Wells Fargo & Co., 6.104%, (3 Month US LIBOR + 3.77%), Series K (FRN)(a),(c)

        6,650,000       6,747,688  

Wells Fargo & Co., 5.90% to 6/15/24, Series S(a),(b)

 

     1,250,000       1,270,313  

Wells Fargo & Co., 5.875% to 6/15/25, Series U(a),(b)

 

     3,021,000       3,181,536  

Wells Fargo Capital X, 5.95%, due 12/15/36, (TruPS)

 

     2,325,000       2,499,375  
      

 

 

  
         79,006,123  
      

 

 

  

BANKS—FOREIGN

      36.0 %     

Banco Bilbao Vizcaya Argentaria SA, 8.875% to 4/14/21 (EUR) (Spain)(a),(b),(e),(f)

        800,000       1,040,301  

Banco de Sabadell SA, 6.50% to 5/18/22 (EUR) (Spain)(a),(b),(e),(f)

 

     400,000       469,781  

Bank of China Hong Kong Ltd., 5.90% to 9/14/23, 144A (Hong Kong)(a),(b),(d)

 

     2,300,000       2,304,165  

Bankia SA, 6.375% to 9/19/23 (EUR) (Spain)(a),(b),(e),(f)

 

     1,200,000       1,417,406  

Barclays PLC, 7.75% to 9/15/23 (United Kingdom)(a),(b),(f)

 

     2,400,000       2,412,000  

Barclays PLC, 7.875% to 3/15/22 (United Kingdom)(a),(b),(e),(f)

 

     2,800,000       2,901,578  

Barclays PLC, 8.25% to 12/15/18 (United Kingdom)(a),(b),(f)

 

     593,000       598,949  

BNP Paribas SA, 6.75% to 3/14/22, 144A (France)(a),(b),(d),(f)

 

     600,000       607,500  

BNP Paribas SA, 7.00% to 8/16/28, 144A (France)(a),(b),(d),(f)

 

     400,000       403,700  

BNP Paribas SA, 7.195% to 6/25/37, 144A (France)(a),(b),(d)

 

     3,375,000       3,560,625  

BNP Paribas SA, 7.375% to 8/19/25, 144A (France)(a),(b),(d),(f)

 

     1,800,000       1,894,410  

 

4

 

 

                                                                       
                           Principal
Amount		      Value  

BNP Paribas SA, 7.625% to 3/30/21, 144A (France)(a),(b),(d),(f)

 

    $ 2,600,000      $ 2,736,500  

Cooperatieve Rabobank UA, 11.00% to 6/30/19, 144A (Netherlands)(a),(b),(d)

 

      6,750,000        7,149,937  

Credit Agricole SA, 6.625% to 9/23/19, 144A (France)(a),(b),(d),(f)

 

      1,600,000        1,618,248  

Credit Agricole SA, 7.875% to 1/23/24, 144A (France)(a),(b),(d),(f)

 

      1,000,000        1,055,420  

Credit Agricole SA, 8.125% to 12/23/25, 144A (France)(a),(b),(d),(f)

 

      2,850,000        3,142,085  

Credit Suisse AG, 6.50%, due 8/8/23, 144A (Switzerland)(d),(f)

 

      1,000,000        1,070,092  

Credit Suisse Group AG, 7.125% to 7/29/22 (Switzerland)(a),(b),(e),(f)

 

      1,500,000        1,539,375  

Credit Suisse Group AG, 7.25% to 9/12/25, 144A (Switzerland)(a),(b),(d),(f)

 

      800,000        805,000  

Credit Suisse Group AG, 7.50% to 12/11/23, 144A (Switzerland)(a),(b),(d),(f)

 

      1,287,000        1,357,618  

Credit Suisse Group AG, 7.50% to 7/17/23, 144A (Switzerland)(a),(b),(d),(f)

 

      2,400,000        2,475,000  

Deutsche Bank AG, 7.50% to 4/30/25 (Germany)(a),(b),(f)

 

      600,000        576,750  

Deutsche Pfandbriefbank AG, 5.75% to 4/28/23, Series 3529 (EUR) (Germany)(a),(b),(e),(f)

         400,000        451,722  

DNB Bank ASA, 5.75% to 3/26/20 (Norway)(a),(b),(e),(f)

 

      1,600,000        1,604,019  

DNB Bank ASA, 6.50% to 3/26/22 (Norway)(a),(b),(e),(f)

 

      3,000,000        3,079,134  

Dresdner Funding Trust I, 8.151%, due 6/30/31, 144A (Germany)(d)

 

      2,807,869        3,476,142  

HSBC Capital Funding LP, 10.176% to 6/30/30, 144A (United Kingdom)(a),(b),(d)

         2,850,000        4,219,767  

HSBC Holdings PLC, 6.25% to 3/23/23 (United Kingdom)(a),(b),(f)

 

      2,000,000        1,995,000  

HSBC Holdings PLC, 6.375% to 9/17/24 (United Kingdom)(a),(b),(f)

 

      800,000        795,232  

HSBC Holdings PLC, 6.375% to 3/30/25 (United Kingdom)(a),(b),(f)

 

      3,400,000        3,378,750  

HSBC Holdings PLC, 6.875% to 6/1/21 (United Kingdom)(a),(b),(f)

 

      3,000,000        3,112,500  

ING Groep N.V., 6.875% to 4/16/22 (Netherlands)(a),(b),(e),(f)

 

      1,800,000        1,831,468  

Intesa Sanpaolo SpA, 7.70% to 9/17/25, 144A (Italy)(a),(b),(d),(f)

 

      1,200,000        1,159,512  

Intesa Sanpaolo SpA, 7.00% to 1/19/21, Series EMTN (EUR) (Italy)(a),(b),(e),(f)

 

      200,000        239,050  

Lloyds Banking Group PLC, 7.50% to 6/27/24 (United Kingdom)(a),(b),(f)

 

      737,000        761,874  

Lloyds Banking Group PLC, 6.657% to 5/21/37, 144A (United Kingdom)(a),(b),(d)

         1,850,000        1,890,478  

 

5

 

 

                                                                       
           Principal
Amount		      Value  

Nationwide Building Society, 10.25% (GBP) (United Kingdom)(a),(e)

 

   $ 1,285,000      $ 2,508,117  

Royal Bank of Scotland Group PLC, 7.50% to 8/10/20 (United Kingdom)(a),(b),(f)

 

     1,200,000        1,231,500  

Royal Bank of Scotland Group PLC, 7.648% to 9/30/31 (United Kingdom)(a),(b)

 

     2,574,000        3,233,588  

Royal Bank of Scotland Group PLC, 8.00% to 8/10/25 (United Kingdom)(a),(b),(f)

 

     1,400,000        1,486,632  

Royal Bank of Scotland Group PLC, 8.625% to 8/15/21 (United Kingdom)(a),(b),(f)

 

     5,400,000        5,798,250  

Skandinaviska Enskilda Banken AB, 5.75% to 5/13/20, Series EMTN (Sweden)(a),(b),(e),(f)

        1,800,000        1,815,523  

Societe Generale SA, 6.00% to 1/27/20, 144A (France)(a),(b),(d),(f)

 

     400,000        392,946  

Societe Generale SA, 7.375% to 9/13/21, 144A (France)(a),(b),(d),(f)

 

     2,600,000        2,687,750  

Societe Generale SA, 7.875% to 12/18/23, 144A (France)(a),(b),(d),(f)

 

     2,600,000        2,700,100  

Societe Generale SA, 8.00% to 9/29/25, 144A (France)(a),(b),(d),(f)

 

     200,000        211,338  

Societe Generale SA, 8.25% to 11/29/18, Series EMTN (France)(a),(b),(e),(f)

 

     600,000        604,814  

Standard Chartered PLC, 6.50% to 4/2/20, 144A (United Kingdom)(a),(b),(d),(f)

 

     2,000,000        1,998,284  

Standard Chartered PLC, 7.50% to 4/2/22, 144A (United Kingdom)(a),(b),(d),(f)

 

     2,200,000        2,266,000  

Standard Chartered PLC, 7.75% to 4/2/23, 144A (United Kingdom)(a),(b),(d),(f)

 

     1,550,000        1,588,750  

Swedbank AB, 6.00% to 3/17/22 (Sweden)(a),(b),(e),(f)

 

     2,800,000        2,840,902  

UBS AG, 7.625%, due 8/17/22 (Switzerland)(f)

 

     2,200,000        2,456,300  

UBS Group AG, 6.875% to 8/7/25 (Switzerland)(a),(b),(e),(f)

 

     2,000,000        2,024,264  

UBS Group AG, 6.875% to 3/22/21 (Switzerland)(a),(b),(e),(f)

 

     1,400,000        1,444,471  

UBS Group AG, 7.00% to 2/19/25 (Switzerland)(a),(b),(e),(f)

 

     1,200,000        1,277,026  

UBS Group AG, 7.125% to 2/19/20 (Switzerland)(a),(b),(e),(f)

 

     1,300,000        1,333,319  

UBS Group AG, 7.125% to 8/10/21 (Switzerland)(a),(b),(e),(f)

 

     2,400,000        2,522,237  
       

 

 

  
          111,553,199  
       

 

 

  

ELECTRIC—REGULATED ELECTRIC

      0.9 %      

CenterPoint Energy, Inc., 6.125% to 9/1/23, Series A(a),(b)

 

     2,650,000        2,699,687  
       

 

 

  

FOOD

      0.8 %      

Land O’ Lakes, Inc., 7.00%, 144A(a),(d)

 

     1,100,000        1,116,500  

 

6

 

 

                                                                       
           Principal
Amount		      Value  

Land O’ Lakes, Inc., 7.25%, 144A(a),(d)

 

   $ 1,190,000      $ 1,240,575  
       

 

 

  
          2,357,075  
       

 

 

  

INDUSTRIALS—DIVERSIFIED MANUFACTURING

      3.0 %      

General Electric Co., 5.00% to 1/21/21, Series D(a),(b)

 

     9,691,000        9,459,627  
       

 

 

  

INSURANCE

      27.9 %      

LIFE/HEALTH INSURANCE

      10.1 %      

MetLife Capital Trust IV, 7.875%, due 12/15/37, 144A(d)

 

     2,473,000        3,041,790  

MetLife, Inc., 9.25%, due 4/8/38, 144A(d)

 

     4,659,000        6,289,650  

MetLife, Inc., 5.25% to 6/15/20, Series C(a),(b)

 

     3,595,000        3,650,722  

MetLife, Inc., 5.875% to 3/15/28, Series D(a),(b)

 

     1,350,000        1,383,750  

Prudential Financial, Inc., 5.20% to 3/15/24, due 3/15/44(b)

 

     1,075,000        1,070,969  

Prudential Financial, Inc., 5.625% to 6/15/23, due 6/15/43(b)

 

     7,364,000        7,686,175  

Prudential Financial, Inc., 5.70% to 9/15/28, due 9/15/48(b)

 

     2,320,000        2,312,066  

Prudential Financial, Inc., 5.875% to 9/15/22, due 9/15/42(b)

 

     1,450,000        1,535,188  

Voya Financial, Inc., 5.65% to 5/15/23, due 5/15/53(b)

 

     3,070,000        3,101,774  

Voya Financial, Inc., 6.125% to 9/15/23, Series A(a),(b)

 

     1,060,000        1,078,550  
       

 

 

  
          31,150,634  
       

 

 

  

LIFE/HEALTH INSURANCE—FOREIGN

      12.9 %      

Dai-ichi Life Insurance Co. Ltd., 4.00% to 7/24/26, 144A (Japan)(a),(b),(d)

 

     3,600,000        3,366,000  

Dai-ichi Life Insurance Co. Ltd., 7.25% to 7/25/21, 144A (Japan)(a),(b),(d)

 

     1,600,000        1,732,000  

Fukoku Mutual Life Insurance Co., 6.50% to 9/19/23 (Japan)(a),(b),(e)

 

     1,951,000        2,104,739  

Hanwha Life Insurance Co., Ltd., 4.70% to 4/23/23, due 4/23/48, 144A (South Korea)(b),(d)

 

     2,200,000        2,103,792  

La Mondiale SAM, 4.80% to 1/18/28, due 1/18/48 (France)(b),(e)

 

     1,000,000        878,486  

La Mondiale Vie, 7.625% to 4/23/19 (France)(a),(b),(e)

 

     2,100,000        2,150,729  

Meiji Yasuda Life Insurance Co., 5.10% to 4/26/28, due 4/26/48, 144A (Japan)(b),(d)

        1,400,000        1,412,250  

Meiji Yasuda Life Insurance Co., 5.20% to 10/20/25, due 10/20/45, 144A (Japan)(b),(d)

        5,900,000        5,995,875  

Nippon Life Insurance Co., 4.70% to 1/20/26, due 1/20/46, 144A (Japan)(b),(d)

 

     2,900,000        2,874,625  

Nippon Life Insurance Co., 5.00% to 10/18/22, due 10/18/42, 144A (Japan)(b),(d)

 

     1,200,000        1,228,404  

Nippon Life Insurance Co., 5.10% to 10/16/24, due 10/16/44, 144A (Japan)(b),(d)

 

     1,900,000        1,933,250  

 

7

 

 

                                                                       
           Principal
Amount		     Value  

Phoenix Group Holdings, 5.75% to 4/26/28 (GBP) (United Kingdom)(a),(b),(e),(f)

 

   $ 400,000     $ 460,752  

Phoenix Group Holdings, 5.375%, due 7/6/27, Series EMTN (United Kingdom)(e)

 

     1,800,000       1,661,758  

Prudential PLC, 6.50% to 10/20/28, due 10/20/48, Series EMTN (United Kingdom)(b),(e)

 

     1,400,000       1,407,000  

Prudential PLC, 7.75%, Series EMTN (United Kingdom)(a),(e)

 

     1,650,000       1,686,551  

Sumitomo Life Insurance Co., 4.00% to 9/14/27, due 9/14/77, 144A (Japan)(b),(d)

 

     2,800,000       2,619,624  

Sumitomo Life Insurance Co., 6.50% to 9/20/23, due 9/20/73, 144A (Japan)(b),(d)

 

     6,000,000       6,510,000  
      

 

 

  
         40,125,835  
      

 

 

  

MULTI-LINE

      0.5 %     

American International Group, Inc., 5.75% to 4/1/28, due 4/1/48, Series A-9(b)

 

     642,000       625,147  

Hartford Financial Services Group, Inc./The, 4.439%, (3 Month US LIBOR + 2.125%), due 2/12/47, 144A, Series ICON (FRN)(c),(d)

 

     1,000,000       942,500  
      

 

 

  
         1,567,647  
      

 

 

  

PROPERTY CASUALTY

      0.7 %     

Assurant, Inc., 7.00% to 3/27/28, due 3/27/48(b)

 

     2,100,000       2,142,000  
      

 

 

  

PROPERTY CASUALTY—FOREIGN

      3.2 %     

QBE Insurance Group Ltd., 6.75% to 12/2/24, due 12/2/44 (Australia)(b),(e)

 

     2,951,000       3,098,550  

QBE Insurance Group Ltd., 5.875% to 6/17/26, due 6/17/46, Series EMTN (Australia)(b),(e)

 

     2,200,000       2,198,500  

Sompo Japan Nipponkoa Insurance, Inc., 5.325% to 3/28/23, due 3/28/73, 144A (Japan)(b),(d)

 

     2,400,000       2,487,000  

VIVAT NV, 6.25% to 11/16/22 (Netherlands)(a),(b),(e)

 

     2,000,000       2,030,608  
      

 

 

  
         9,814,658  
      

 

 

  

REINSURANCE—FOREIGN

      0.5 %     

Aquarius + Investments PLC, 6.375% to 9/1/19, due 9/1/24 (Ireland)(b),(e),(f)

 

     1,600,000       1,635,386  
      

 

 

  

TOTAL INSURANCE

 

       86,436,160  
      

 

 

  

INTEGRATED TELECOMMUNICATIONS SERVICES

      1.9 %     

Centaur Funding Corp., 9.08%, due 4/21/20, 144A (Cayman Islands)(d)

 

     3,500 †      3,780,000  

 

8

 

 

                                                                       
           Principal
Amount		      Value  

Vodafone Group PLC, 6.25% to 7/3/24, due 10/3/78 (United Kingdom)(b),(e)

 

   $ 2,300,000      $ 2,293,827  
       

 

 

  
          6,073,827  
       

 

 

  

MATERIAL—METALS & MINING

      2.0 %      

BHP Billiton Finance USA Ltd., 6.25% to 10/19/20, due 10/19/75, 144A (Australia)(b),(d)

        800,000        836,400  

BHP Billiton Finance USA Ltd., 6.75% to 10/20/25, due 10/19/75, 144A (Australia)(b),(d)

        4,800,000        5,274,000  
       

 

 

  
          6,110,400  
       

 

 

  

PIPELINES

      2.1 %      

Enbridge, Inc., 6.25% to 3/1/28, due 3/1/78 (Canada)(b)

 

     1,255,000        1,215,173  

Transcanada Trust, 5.625% to 5/20/25, due 5/20/75 (Canada)(b)

 

     590,000        579,675  

Transcanada Trust, 5.875% to 8/15/26, due 8/15/76, Series 16-A (Canada)(b)

 

     4,737,000        4,849,504  
       

 

 

  
          6,644,352  
       

 

 

  

UTILITIES

      4.0 %      

ELECTRIC UTILITIES—FOREIGN

      3.3 %      

Emera, Inc., 6.75% to 6/15/26, due 6/15/76, Series 16-A (Canada)(b)

 

     4,630,000        4,954,100  

Enel SpA, 8.75% to 9/24/23, due 9/24/73, 144A (Italy)(b),(d)

 

     4,847,000        5,380,170  
       

 

 

  
          10,334,270  
       

 

 

  

MULTI-UTILITIES

      0.7 %      

NiSource, Inc., 5.65% to 6/15/23, 144A(a),(b),(d)

 

     2,045,000        2,027,106  
       

 

 

  

TOTAL UTILITIES

 

        12,361,376  
       

 

 

  

TOTAL PREFERRED SECURITIES—CAPITAL SECURITIES
(Identified cost—$312,249,150)

 

        322,701,826  
       

 

 

  

CORPORATE BONDS—INSURANCE-PROPERTY CASUALTY

      2.0 %      

Liberty Mutual Insurance, 7.697%, due 10/15/97, 144A(d)

 

     4,829,000        6,352,849  
       

 

 

  

TOTAL CORPORATE BONDS
(Identified cost—$4,343,482)

           6,352,849  
       

 

 

  

 

9

 

 

                                                                       
               
Shares		      Value  

SHORT-TERM INVESTMENTS

      2.2 %      

MONEY MARKET FUNDS

        

State Street Institutional Treasury Money Market Fund, Premier Class, 1.95%(g)

 

     7,000,617      $ 7,000,617  
       

 

 

  

TOTAL SHORT-TERM INVESTMENTS
(Identified cost—$7,000,617)

           7,000,617  
       

 

 

  

TOTAL INVESTMENTS IN SECURITIES(h) (Identified cost—$422,280,442)

      140.8 %         436,671,678  

LIABILITIES IN EXCESS OF OTHER ASSETS

      (40.8 )         (126,619,587 ) 
  

 

 

       

 

 

  

NET ASSETS (Equivalent to $25.84 per share based on 12,000,474 shares of common stock outstanding)

      100.0 %       $ 310,052,091  
  

 

 

       

 

 

  

Centrally Cleared Interest Rate Swap Contracts

 

Notional
Amount

     

Fixed
Rate
Payable

     

Fixed
Payment
Frequency

   

Floating
Rate (resets
monthly)
Receivable

     

Floating
Payment
Frequency

    Maturity Date   

Upfront
Payments
(Receipts)

     

Unrealized
Appreciation
(Depreciation)

     

Fair Value

  
  $ 25,000,000        1.117%     

Quarterly

      2.168%     

Monthly

    10/19/21    $  —      $  1,219,999      $  1,219,999  
  35,000,000        1.203%     

Quarterly

      2.168%     

Monthly

    10/19/22      —        2,184,448        2,184,448  
  13,000,000        1.848%     

Quarterly

      2.168%     

Monthly

    10/19/22      —        453,716        453,716  
  40,000,000        1.288%     

Quarterly

      2.168%     

Monthly

    10/19/23      —        2,960,470        2,960,470  
                 

 

 

     

 

 

     

 

 

  
   $ —      $ 6,818,633      $ 6,818,633  
  

 

 

     

 

 

     

 

 

  

 

10

 

 

Forward Foreign Currency Exchange Contracts

 

Counterparty

   

Contracts
to Deliver

     

In Exchange

For

     

Settlement
Date

    Unrealized
Appreciation
(Depreciation)		  

Brown Brothers Harriman

    EUR      789,857      USD      919,605      10/2/18    $ 2,541  

Brown Brothers Harriman

    EUR      3,458,353      USD      4,021,442      10/2/18      6,120  

Brown Brothers Harriman

    GBP      1,982,323      USD      2,572,877      10/2/18      (10,884 ) 

Brown Brothers Harriman

    GBP      1,305,689      USD      1,694,667      10/2/18      (7,169 ) 

Brown Brothers Harriman

    USD      516,801      GBP      392,545      10/2/18      (5,157 ) 

Brown Brothers Harriman

    USD      2,587,784      GBP      1,982,323      10/2/18      (4,023 ) 

Brown Brothers Harriman

    USD        3,666,094      EUR        3,154,362      10/2/18      (3,721 ) 

Brown Brothers Harriman

    USD      766,096      EUR      657,492      10/2/18      (2,714 ) 

Brown Brothers Harriman

    USD      1,192,046      GBP      913,144      10/2/18      (1,853 ) 

Brown Brothers Harriman

    USD      257,027      EUR      221,147      10/2/18      (264 ) 

Brown Brothers Harriman

    USD      249,706      EUR      215,209      10/2/18      162  

Brown Brothers Harriman

    EUR      3,160,773      USD      3,682,206      11/2/18      3,507  

Brown Brothers Harriman

    GBP      908,625      USD      1,187,691      11/2/18      1,762  

Brown Brothers Harriman

    GBP      1,963,487      USD      2,566,533      11/2/18      3,809  
                 

 

 

  
                  $         (17,884 ) 
                 

 

 

  

The amount of all interest rate swap contracts and forward foreign currency exchange contracts as presented in the tables above are representative of the volume of activity for these derivative types during the nine months ended September 30, 2018.

Glossary of Portfolio Abbreviations

 

EMTN   

Euro Medium Term Note

ETF   

Exchange-Traded Fund

EUR   

Euro Currency

FRN   

Floating Rate Note

GBP   

Great British Pound

LIBOR   

London Interbank Offered Rate

TruPS   

Trust Preferred Securities

USD   

United States Dollar

 

11

 

 

 

Note: Percentages indicated are based on the net assets of the Fund.

†

Represents shares.

(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)

Variable rate. Rate shown is in effect at September 30, 2018.

(d)

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 $125,615,727, which represents 40.5% of the net assets of the Fund, of which 0.0% are illiquid.

(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 $50,043,275, which represents 16.1% of the net assets of the Fund, of which 0.0% are illiquid.

(f)

Contingent Capital security (CoCo). CoCos are preferred securities with loss absorption characteristics built into the terms of the security for the benefit of the issuer. Aggregate holdings amounted to $85,306,518, which represents 27.5% of the net assets of the Fund (19.4% of the managed assets of the Fund).

(g)

Rate quoted represents the seven-day yield.

(h)

Securities held by the Fund are subject to a lien, granted to the lender, to the extent of the borrowing outstanding in connection with the Fund’s revolving credit agreement.

(i)

Based on LIBOR (London Interbank Offered Rate). Represents rates in effect at September 30, 2018.

 

12

 

 

                       

Country Summary

    % of
Managed
Assets		  

United States

      51.3  

United Kingdom

      11.3  

Japan

      7.3  

France

      5.6  

Switzerland

      4.2  

Canada

      3.2  

Australia

      2.6  

Netherlands

      2.5  

Bermuda

      2.2  

Italy

      1.5  

Norway

      1.1  

Sweden

      1.1  

Germany

      1.0  

Cayman Islands

      0.9  

Spain

      0.7  

Hong Kong

      0.5  

South Korea

      0.5  

Other

      2.5  
  

 

 

  
     100.0  
  

 

 

  

 

13

 

 

COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited)

 

Note 1. 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 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. Over-the-counter (OTC) interest rate swaps are valued utilizing quotes received from a third-party pricing service.

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 OTC market, including listed securities whose primary market is believed by Cohen & Steers Capital Management, Inc. (the investment manager) 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 manager, 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 manager, pursuant to 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).

 

 

 

COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

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 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 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 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.

The Fund’s 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 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 investments may or may not be an indication of the risk associated with those investments.

 

 

 

COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS (Unaudited) (Continued)

 

The following is a summary of the inputs used as of September 30, 2018 in valuing the Fund’s investments carried at value:

 

                                                                                   
     Total     Quoted Prices in
Active Markets
for Identical
Investments
(Level 1)		      Other
Significant
Observable
Inputs
(Level 2)		     Significant
Unobservable
Inputs
(Level 3)		  

Preferred Securities—$25 Par Value:

          

Banks

    $ 31,782,925     $ 31,152,706      $ 630,219     $ —  

Electric—Integrated Electric

      3,879,054       1,239,430        2,639,624       —  

Other Industries

      59,745,746       59,745,746        —       —  

Preferred Securities—Capital Securities

      322,701,826       —        322,701,826       —  

Corporate Bonds

      6,352,849       —        6,352,849       —  

Exchange-Traded Funds

      5,208,661       5,208,661        —       —  

Short-Term Investments

      7,000,617       —        7,000,617       —  
  

 

 

    

 

 

     

 

 

    

 

 

  

Total Investments in Securities(a)

    $ 436,671,678     $ 97,346,543      $ 339,325,135     $ —  
  

 

 

    

 

 

     

 

 

    

 

 

  

Interest Rate Swap Contracts

    $ 6,818,633     $ —      $ 6,818,633     $ —  

Forward Foreign Currency Exchange Contracts

      17,901       —        17,901       —  
  

 

 

    

 

 

     

 

 

    

 

 

  

Total Derivative Assets(a)

    $ 6,836,534     $ —      $ 6,836,534     $ —  
  

 

 

    

 

 

     

 

 

    

 

 

  

Forward Foreign Currency Exchange Contracts

    $ (35,785 )    $ —      $ (35,785 )    $ —  
  

 

 

    

 

 

     

 

 

    

 

 

  

Total Derivative Liabilities(a)

    $ (35,785 )    $  —      $ (35,785 )    $ —  
  

 

 

    

 

 

     

 

 

    

 

 

  

 

(a)   Portfolio holdings are disclosed individually on the Schedule of Investments..

    

Note 2. Derivative Instruments

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.

 

 

 

COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS (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.

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 Fund’s 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 counterparty’s agreement to pay the Fund a variable rate payment that was intended to approximate the Fund’s 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).

Immediately following execution of the swap agreement, the swap agreement is novated to a central counterparty (the CCP) and the Fund’s 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 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. Payments received from or paid to the counterparty, including at termination, are recorded as realized gain (loss).

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. 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.

 

 

 

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 of 1934 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 and Principal Executive Officer

          Date: November 21, 2018

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

Title: President and Principal Executive Officer

      

Name: James Giallanza

Title: Principal Financial Officer

          Date: November 21, 2018