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 |
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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 | ||||||||
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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: |
September 30, 2012 |
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Item 1. Schedule of Investments
COHEN & STEERS SELECT PREFERRED AND INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
September 30, 2012 (Unaudited)
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Number |
|
Value |
| |
|
PREFERRED SECURITIES—$25 PAR VALUE 50.2% |
|
|
|
|
| |
|
BANKS 16.4% |
|
|
|
|
| |
|
Ally Financial, 7.35%, due 8/8/32(a) |
|
110,600 |
|
$ |
2,728,502 |
|
|
Ally Financial, 7.375%, due 12/16/44 |
|
72,000 |
|
1,753,920 |
| |
|
Bank of America Corp., 7.25%, Series L ($1,000 Par Value)(Convertible) |
|
1,878 |
|
2,047,020 |
| |
|
Citigroup Capital VIII, 6.95%, due 9/15/31, (TruPS)(a) |
|
237,397 |
|
5,972,909 |
| |
|
CoBank ACB, 7.00%, 144A ($50 Par Value)(b),(c) |
|
75,000 |
|
3,768,750 |
| |
|
Countrywide Capital IV, 6.75%, due 4/1/33(a) |
|
63,322 |
|
1,583,050 |
| |
|
Countrywide Capital V, 7.00%, due 11/1/36(a) |
|
164,579 |
|
4,145,745 |
| |
|
First Niagara Financial Group, 8.625%, Series B(a) |
|
80,000 |
|
2,340,000 |
| |
|
Huntington Bancshares, 8.50%, due 12/31/49, Series A ($1,000 Par Value)(Convertible)(a) |
|
2,048 |
|
2,611,200 |
| |
|
KeyCorp, 7.75%, due 12/31/49, Series A ($100 Par Value)(Convertible)(a) |
|
20,308 |
|
2,513,115 |
| |
|
PNC Financial Services Group, 6.125%, Series P |
|
80,000 |
|
2,197,600 |
| |
|
US Bancorp, 6.50%, Series F(a) |
|
80,000 |
|
2,328,000 |
| |
|
US Bancorp, 6.00%, Series G |
|
40,000 |
|
1,119,200 |
| |
|
Wells Fargo & Co., 7.50%, Series L ($1,000 Par Value)(Convertible)(a) |
|
7,520 |
|
9,309,760 |
| |
|
Zions Bancorp, 9.50%, due 12/29/49, Series C(a) |
|
122,725 |
|
3,211,713 |
| |
|
Zions Bancorp, 7.90%, Series F |
|
180,000 |
|
5,002,200 |
| |
|
|
|
|
|
52,632,684 |
| |
|
BANKS—FOREIGN 4.8% |
|
|
|
|
| |
|
Barclays Bank PLC, 7.75%, Series IV(a) |
|
111,755 |
|
2,862,046 |
| |
|
Deutsche Bank Capital Funding Trust VIII, 6.375%(a) |
|
33,863 |
|
848,268 |
| |
|
Deutsche Bank Contingent Capital Trust III, 7.60%(a) |
|
122,983 |
|
3,266,429 |
| |
|
National Westminster Bank PLC, 7.76%, Series C(a) |
|
157,226 |
|
3,938,511 |
| |
|
Royal Bank of Scotland Group PLC, 6.40%, Series M |
|
102,000 |
|
2,081,820 |
| |
|
Royal Bank of Scotland Group PLC, 6.35%, Series N |
|
114,862 |
|
2,356,968 |
| |
|
|
|
|
|
15,354,042 |
| |
|
ELECTRIC—INTEGRATED 1.4% |
|
|
|
|
| |
|
DTE Energy Co., 6.50%, due 12/1/61(a) |
|
39,453 |
|
1,105,473 |
| |
|
NextEra Energy Capital Holdings, 5.70%, due 3/1/72, Series G(a) |
|
35,000 |
|
939,750 |
| |
|
NextEra Energy Capital Holdings, 5.625%, due 6/15/72, Series H |
|
33,595 |
|
883,549 |
| |
|
SCE Trust I, 5.625% |
|
60,000 |
|
1,564,800 |
| |
|
|
|
|
|
4,493,572 |
| |
|
|
|
Number |
|
Value |
| |
|
FINANCE—INVESTMENT BANKER/BROKER 0.6% |
|
|
|
|
| |
|
Raymond James Financial, 6.90%, due 3/15/42 |
|
72,158 |
|
$ |
1,981,459 |
|
|
|
|
|
|
|
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INDUSTRIALS—DIVERSIFIED MANUFACTURING 0.8% |
|
|
|
|
| |
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Stanley Black & Decker, 5.75%, due 7/25/52 |
|
100,000 |
|
2,637,000 |
| |
|
|
|
|
|
|
| |
|
INSURANCE 11.2% |
|
|
|
|
| |
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LIFE/HEALTH INSURANCE—FOREIGN 1.2% |
|
|
|
|
| |
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Aegon NV, 6.375% |
|
22,523 |
|
569,156 |
| |
|
Aegon NV, 6.875% |
|
36,589 |
|
916,555 |
| |
|
Aegon NV, 7.25% |
|
51,800 |
|
1,312,094 |
| |
|
Aegon NV, 8.00%, due 2/15/42 |
|
36,530 |
|
982,657 |
| |
|
|
|
|
|
3,780,462 |
| |
|
MULTI-LINE 2.1% |
|
|
|
|
| |
|
American International Group, 7.70%, due 12/18/62(a) |
|
94,516 |
|
2,389,364 |
| |
|
Hartford Financial Services Group, 7.875%, due 4/15/42(a) |
|
160,000 |
|
4,478,400 |
| |
|
|
|
|
|
6,867,764 |
| |
|
MULTI-LINE—FOREIGN 4.6% |
|
|
|
|
| |
|
ING Groep N.V., 6.125%(a) |
|
108,600 |
|
2,539,068 |
| |
|
ING Groep N.V., 6.375%(a) |
|
104,870 |
|
2,507,442 |
| |
|
ING Groep N.V., 7.05% |
|
119,064 |
|
2,978,981 |
| |
|
ING Groep N.V., 7.375%(a) |
|
171,502 |
|
4,275,545 |
| |
|
ING Groep N.V., 8.50%(a) |
|
92,789 |
|
2,431,072 |
| |
|
|
|
|
|
14,732,108 |
| |
|
REINSURANCE 0.5% |
|
|
|
|
| |
|
Reinsurance Group of America, 6.20%, due 9/15/42 |
|
60,000 |
|
1,582,800 |
| |
|
|
|
|
|
|
| |
|
REINSURANCE—FOREIGN 2.8% |
|
|
|
|
| |
|
Arch Capital Group Ltd., 6.75% |
|
78,195 |
|
2,087,806 |
| |
|
Aspen Insurance Holdings Ltd., 7.25% |
|
76,000 |
|
1,987,400 |
| |
|
Axis Capital Holdings Ltd., 6.875%, Series C |
|
76,865 |
|
2,067,668 |
| |
|
Endurance Specialty Holdings Ltd., 7.50%, Series B |
|
66,556 |
|
1,741,771 |
| |
|
Montpelier Re Holdings Ltd., 8.875% |
|
41,600 |
|
1,110,720 |
| |
|
|
|
|
|
8,995,365 |
| |
|
TOTAL INSURANCE |
|
|
|
35,958,499 |
| |
|
|
|
|
|
|
| |
|
INTEGRATED TELECOMMUNICATIONS SERVICES 3.9% |
|
|
|
|
| |
|
Qwest Corp., 7.00%, due 4/1/52(a) |
|
114,879 |
|
3,055,781 |
| |
|
Qwest Corp., 7.375%, due 6/1/51(a) |
|
170,495 |
|
4,582,906 |
| |
|
Telephone & Data Systems, 6.875%, due 11/15/59(a) |
|
137,534 |
|
3,773,933 |
| |
|
|
|
Number |
|
Value |
| |
|
United States Cellular Corp., 6.95%, due 5/15/60(a) |
|
36,504 |
|
$ |
999,114 |
|
|
|
|
|
|
12,411,734 |
| |
|
REAL ESTATE 10.0% |
|
|
|
|
| |
|
DIVERSIFIED 2.3% |
|
|
|
|
| |
|
Cousins Properties, 7.50%, Series B(a) |
|
110,000 |
|
2,772,000 |
| |
|
DuPont Fabros Technology, 7.875%, Series A(a) |
|
103,254 |
|
2,774,435 |
| |
|
Sovereign Real Estate Investment Trust, 12.00%, 144A ($1,000 Par Value)(c) |
|
1,500 |
|
1,814,795 |
| |
|
|
|
|
|
7,361,230 |
| |
|
HOTEL 0.5% |
|
|
|
|
| |
|
Hersha Hospitality Trust, 8.00%, Series B(a) |
|
62,500 |
|
1,618,125 |
| |
|
|
|
|
|
|
| |
|
INDUSTRIALS 1.3% |
|
|
|
|
| |
|
First Potomac Realty Trust, 7.75%, Series A(a) |
|
120,000 |
|
3,099,600 |
| |
|
Monmouth Real Estate Investment Corp., 7.875%, Series B(b) |
|
37,500 |
|
993,750 |
| |
|
|
|
|
|
4,093,350 |
| |
|
OFFICE 1.2% |
|
|
|
|
| |
|
CommonWealth REIT, 6.50%, Series D (Convertible)(a) |
|
90,025 |
|
2,114,687 |
| |
|
Hudson Pacific Properties, 8.375%, Series B(a) |
|
70,000 |
|
1,876,350 |
| |
|
|
|
|
|
3,991,037 |
| |
|
RESIDENTIAL—MANUFACTURED HOME 0.5% |
|
|
|
|
| |
|
Equity Lifestyle Properties, 8.034%, Series A |
|
22,550 |
|
565,328 |
| |
|
Equity Lifestyle Properties, 6.75%, Series C |
|
47,378 |
|
1,219,036 |
| |
|
|
|
|
|
1,784,364 |
| |
|
SHOPPING CENTERS 3.4% |
|
|
|
|
| |
|
COMMUNITY CENTER 2.2% |
|
|
|
|
| |
|
DDR Corp., 7.375%, Series H(a) |
|
180,000 |
|
4,534,200 |
| |
|
Kite Realty Group Trust, 8.25%, Series A(a) |
|
100,000 |
|
2,594,000 |
| |
|
|
|
|
|
7,128,200 |
| |
|
REGIONAL MALL 1.2% |
|
|
|
|
| |
|
CBL & Associates Properties, 7.375%, Series D(a) |
|
144,935 |
|
3,669,754 |
| |
|
TOTAL SHOPPING CENTERS |
|
|
|
10,797,954 |
| |
|
|
|
|
|
|
| |
|
SPECIALTY 0.8% |
|
|
|
|
| |
|
Entertainment Properties Trust, 7.375%, Series D(a) |
|
97,783 |
|
2,451,420 |
| |
|
TOTAL REAL ESTATE |
|
|
|
32,097,480 |
| |
|
|
|
Number |
|
Value |
| |
|
TRANSPORT—MARINE 1.1% |
|
|
|
|
| |
|
Seaspan Corp., 9.50%, due 1/29/49, Series C(a) |
|
116,902 |
|
$ |
3,287,284 |
|
|
TOTAL PREFERRED SECURITIES—$25 PAR VALUE |
|
|
|
160,853,754 |
| |
|
|
|
|
|
|
| |
|
PREFERRED SECURITIES—CAPITAL SECURITIES 83.0% |
|
|
|
|
| |
|
BANKS 20.7% |
|
|
|
|
| |
|
Citigroup, 8.40%, due 4/29/49, Series E(b) |
|
6,987,000 |
|
7,483,356 |
| |
|
Citigroup Capital III, 7.625%, due 12/1/36(a) |
|
4,000,000 |
|
4,320,000 |
| |
|
CoBank ACB, 11.00%, Series C, 144A ($50 Par Value)(c),(d) |
|
100,000 |
|
5,362,500 |
| |
|
Countrywide Capital III, 8.05%, due 6/15/27, Series B(e) |
|
1,815,000 |
|
2,098,594 |
| |
|
Farm Credit Bank of Texas, 10.00%, due 12/15/20, Series I |
|
10,000 |
|
11,712,500 |
| |
|
Goldman Sachs Capital I, 6.345%, due 2/15/34(d) |
|
4,500,000 |
|
4,534,407 |
| |
|
JP Morgan Chase & Co., 7.90%, due 4/29/49, Series I (FRN)(a) |
|
12,500,000 |
|
14,247,663 |
| |
|
NB Capital Trust II, 7.83%, due 12/15/26(a) |
|
3,503,000 |
|
3,572,184 |
| |
|
PNC Financial Services Group, 6.75%, due 7/29/49, (FRN)(a) |
|
4,500,000 |
|
5,049,635 |
| |
|
Wells Fargo & Co., 7.98%, due 3/29/49, Series K (FRN)(a) |
|
6,900,000 |
|
7,952,250 |
| |
|
|
|
|
|
66,333,089 |
| |
|
BANKS—FOREIGN 19.7% |
|
|
|
|
| |
|
Abbey National Capital Trust I, 8.963%, due 12/29/49(a) |
|
3,200,000 |
|
3,440,000 |
| |
|
Banco do Brasil SA/Cayman, 9.25%, due 12/31/49, 144A(c) |
|
5,500,000 |
|
6,572,500 |
| |
|
Barclays Bank PLC, 6.278%, due 12/31/49(f) |
|
2,000,000 |
|
1,831,250 |
| |
|
Barclays Bank PLC, 6.86%, due 12/31/49, 144A(c) |
|
2,297,000 |
|
2,262,545 |
| |
|
BNP Paribas, 7.195%, due 12/31/49, 144A(a),(c) |
|
3,250,000 |
|
3,089,125 |
| |
|
BPCE SA, 9.00%, due 3/29/49 (France) (EUR) |
|
900,000 |
|
1,147,871 |
| |
|
Claudius Ltd., 7.875%, due 12/12/49 |
|
5,000,000 |
|
5,271,250 |
| |
|
HSBC Capital Funding LP, 10.176%, due 12/29/49, 144A(a),(c) |
|
7,750,000 |
|
10,617,500 |
| |
|
LBG Capital No.1 PLC, 8.00%, due 12/29/49, 144A(c) |
|
4,000,000 |
|
3,857,576 |
| |
|
Lloyds TSB Bank PLC, 6.35%, due 12/31/49 (United Kingdom) (EUR) |
|
1,600,000 |
|
1,490,658 |
| |
|
Lloyds TSB Bank PLC, 9.875%, due 12/16/21, (FRN) |
|
1,000,000 |
|
1,154,546 |
| |
|
Lloyds TSB Bank PLC, 11.875%, due 12/16/21, (FRN) (United Kingdom) (EUR) |
|
1,000,000 |
|
1,480,444 |
| |
|
Rabobank Nederland, 8.40%, due 12/31/49 |
|
5,000,000 |
|
5,265,000 |
| |
|
Rabobank Nederland, 11.00%, due 6/29/49, 144A(a),(c) |
|
3,350,000 |
|
4,426,110 |
| |
|
Royal Bank of Scotland PLC, 9.50%, due 3/16/22, (FRN) |
|
1,350,000 |
|
1,515,864 |
| |
|
SMFG Preferred Capital, 9.50%, due 7/29/49, 144A (FRN)(a),(c) |
|
1,700,000 |
|
2,137,750 |
| |
|
Standard Chartered PLC, 7.014%, due 7/29/49, 144A(a),(c) |
|
3,000,000 |
|
3,069,054 |
| |
|
|
|
Number |
|
Value |
| |
|
UBS AG, 7.625%, due 8/17/22 |
|
4,500,000 |
|
$ |
4,713,196 |
|
|
|
|
|
|
63,342,239 |
| |
|
FINANCE 5.1% |
|
|
|
|
| |
|
DIVERSIFIED FINANCIAL SERVICES 4.5% |
|
|
|
|
| |
|
General Electric Capital Corp., 7.125%, due 12/15/49, Series A |
|
7,400,000 |
|
8,278,905 |
| |
|
General Electric Capital Corp., 6.25%, due 12/15/49, Series B |
|
5,900,000 |
|
6,253,847 |
| |
|
|
|
|
|
14,532,752 |
| |
|
MULTI-LINE—FOREIGN 0.6% |
|
|
|
|
| |
|
Old Mutual PLC, 8.00%, due 6/3/21 (United Kingdom) (GBP) |
|
1,000,000 |
|
1,768,974 |
| |
|
TOTAL FINANCE |
|
|
|
16,301,726 |
| |
|
|
|
|
|
|
| |
|
INSURANCE 22.7% |
|
|
|
|
| |
|
LIFE/HEALTH INSURANCE 3.8% |
|
|
|
|
| |
|
American General Institutional Capital A, 7.57%, due 12/1/45, 144A(c) |
|
4,600,000 |
|
5,175,000 |
| |
|
American General Institutional Capital B, 8.125%, due 3/15/46, 144A(a),(c) |
|
3,000,000 |
|
3,547,500 |
| |
|
Aviva PLC, 8.25%, due 4/29/49 |
|
2,000,000 |
|
2,142,530 |
| |
|
Great-West Life & Annuity Insurance Co., 7.153%, due 5/16/46, 144A(a),(c) |
|
1,405,000 |
|
1,447,150 |
| |
|
|
|
|
|
12,312,180 |
| |
|
LIFE/HEALTH INSURANCE—FOREIGN 1.7% |
|
|
|
|
| |
|
Prudential PLC, 7.75%, due 6/23/16(a) |
|
5,000,000 |
|
5,387,500 |
| |
|
|
|
|
|
|
| |
|
MULTI-LINE 8.6% |
|
|
|
|
| |
|
American International Group, 8.175%, due 5/15/58, (FRN)(a) |
|
10,070,000 |
|
12,373,512 |
| |
|
MetLife Capital Trust IV, 7.875%, due 12/15/37, 144A(a),(c) |
|
6,450,000 |
|
7,643,250 |
| |
|
MetLife Capital Trust X, 9.25%, due 4/8/38, 144A(a),(c) |
|
5,599,000 |
|
7,418,675 |
| |
|
|
|
|
|
27,435,437 |
| |
|
MULTI-LINE—FOREIGN 2.3% |
|
|
|
|
| |
|
AXA SA, 8.60%, due 12/15/30(a) |
|
2,000,000 |
|
2,424,344 |
| |
|
AXA SA, 6.379%, due 12/31/49, 144A(a),(c) |
|
2,050,000 |
|
1,865,500 |
| |
|
AXA SA, 6.463%, due 12/31/49, 144A(c) |
|
1,000,000 |
|
927,500 |
| |
|
Cloverie PLC, 8.25%, due 12/31/49 |
|
2,000,000 |
|
2,249,760 |
| |
|
|
|
|
|
7,467,104 |
| |
|
|
|
Number |
|
Value |
| |
|
PROPERTY CASUALTY 2.0% |
|
|
|
|
| |
|
Liberty Mutual Group, 7.80%, due 3/15/37, 144A(a),(c) |
|
3,200,000 |
|
$ |
3,488,000 |
|
|
Mitsui Sumitomo Insurance Co., Ltd., 7.00%, due 3/15/72, 144A(a),(c) |
|
2,500,000 |
|
2,780,805 |
| |
|
|
|
|
|
6,268,805 |
| |
|
REINSURANCE—FOREIGN 4.3% |
|
|
|
|
| |
|
Aquarius + Investments PLC, 8.25%, due 12/31/49 |
|
2,510,000 |
|
2,616,999 |
| |
|
Catlin Insurance Co., 7.249%, due 12/31/49, 144A(a),(c) |
|
4,550,000 |
|
4,476,062 |
| |
|
QBE Capital Funding III Ltd., 7.25%, due 5/24/41, 144A(a),(c) |
|
2,250,000 |
|
2,281,752 |
| |
|
Swiss Re Capital I LP, 6.854%, due 5/29/49, 144A(c) |
|
1,500,000 |
|
1,527,468 |
| |
|
Swiss Reinsurance Co., Ltd., Series I, 7.635%, due 12/31/49 (Australia) (AUD) |
|
3,000,000 |
|
2,910,468 |
| |
|
|
|
|
|
13,812,749 |
| |
|
TOTAL INSURANCE |
|
|
|
72,683,775 |
| |
|
|
|
|
|
|
| |
|
INTEGRATED TELECOMMUNICATIONS SERVICES 3.9% |
|
|
|
|
| |
|
Centaur Funding Corp., 9.08%, due 4/21/20, 144A(c) |
|
10,000 |
|
12,712,500 |
| |
|
|
|
|
|
|
| |
|
OIL & GAS EXPLORATION & PRODUCTION 0.6% |
|
|
|
|
| |
|
Origin Energy Finance Ltd., 7.875%, due 6/16/71 (Australia) (EUR) |
|
1,500,000 |
|
1,980,583 |
| |
|
|
|
|
|
|
| |
|
PIPELINES 5.5% |
|
|
|
|
| |
|
Enbridge Energy Partners LP, 8.05%, due 10/1/37(a) |
|
5,980,000 |
|
6,779,400 |
| |
|
Enterprise Products Operating LLC, 7.034%, due 1/15/68, Series B |
|
2,500,000 |
|
2,803,123 |
| |
|
Enterprise Products Operating LP, 8.375%, due 8/1/66(a) |
|
7,036,000 |
|
7,939,655 |
| |
|
|
|
|
|
17,522,178 |
| |
|
UTILITIES 4.8% |
|
|
|
|
| |
|
ELECTRIC UTILITIES 2.4% |
|
|
|
|
| |
|
FPL Group Capital, 7.30%, due 9/1/67, Series D(a) |
|
7,015,000 |
|
7,706,952 |
| |
|
|
|
|
|
|
| |
|
MULTI-UTILITIES 2.4% |
|
|
|
|
| |
|
Dominion Resources, 7.50%, due 6/30/66, Series A(a) |
|
3,900,000 |
|
4,254,483 |
| |
|
PPL Capital Funding, 6.70%, due 3/30/67, Series A(a) |
|
3,300,000 |
|
3,435,475 |
| |
|
|
|
|
|
7,689,958 |
| |
|
TOTAL UTILITIES |
|
|
|
15,396,910 |
| |
|
TOTAL PREFERRED SECURITIES—CAPITAL SECURITIES |
|
|
|
266,273,000 |
| |
|
|
|
Principal |
|
Value |
| ||
|
CORPORATE BONDS 5.4% |
|
|
|
|
| ||
|
BANKS 0.9% |
|
|
|
|
| ||
|
Regions Financial Corp., 7.375%, due 12/10/37 |
|
$ |
2,700,000 |
|
$ |
2,848,500 |
|
|
INSURANCE—PROPERTY CASUALTY 1.7% |
|
|
|
|
| ||
|
Liberty Mutual Insurance, 7.697%, due 10/15/97, 144A(c) |
|
5,250,000 |
|
5,486,171 |
| ||
|
INTEGRATED TELECOMMUNICATIONS SERVICES 2.8% |
|
|
|
|
| ||
|
CenturyLink, 7.65%, due 3/15/42(d) |
|
3,000,000 |
|
3,205,938 |
| ||
|
Citizens Communications Co., 9.00%, due 8/15/31(a) |
|
5,500,000 |
|
5,898,750 |
| ||
|
|
|
|
|
9,104,688 |
| ||
|
TOTAL CORPORATE BONDS |
|
|
|
17,439,359 |
| ||
|
|
|
Number |
|
|
| |||
|
SHORT-TERM INVESTMENTS 1.0% |
|
|
|
|
| |||
|
MONEY MARKET FUNDS |
|
|
|
|
| |||
|
BlackRock Liquidity Funds: FedFund, 0.01%(g) |
|
1,550,008 |
|
1,550,008 |
| |||
|
Federated Government Obligations Fund, 0.02%(g) |
|
1,550,008 |
|
1,550,008 |
| |||
|
TOTAL SHORT-TERM INVESTMENTS |
|
|
|
3,100,016 |
| |||
|
|
|
|
|
|
| |||
|
TOTAL INVESTMENTS (Identified cost—$412,472,326) |
139.6 |
% |
|
|
|
447,666,129 |
| |
|
|
|
|
|
|
|
|
| |
|
LIABILITIES IN EXCESS OF OTHER ASSETS |
(39.6 |
) |
|
|
|
(127,064,899 |
) | |
|
|
|
|
|
|
|
|
| |
|
NET ASSETS (Equivalent to $26.69 per share based on 12,012,771 shares of common stock outstanding) |
100.0 |
% |
|
|
|
$ |
320,601,230 |
|
|
Note: Percentages indicated are based on the net assets of the Fund. | |
|
(a) |
A portion or all of the security is pledged as collateral in connection with the Fund’s revolving credit agreement. $178,974,175 in aggregate has been pledged as collateral. |
|
(b) |
Illiquid security. Aggregate holdings equal 3.8% of the net assets of the Fund. |
|
(c) |
Resale is restricted to qualified institutional investors. Aggregate holdings equal 33.6% of the net assets of the Fund, of which 1.2% are illiquid. |
|
(d) |
A portion of the security is segregated as collateral for interest rate swap transactions. $4,789,969 in aggregate has been segregated as collateral. |
|
(e) |
A portion of the security is segregated as collateral for open forward foreign currency exchange contracts. $693,750 in aggregate has been segregated as collateral. |
|
(f) |
Fair valued security. This security has been valued at its fair value as determined in good faith under procedures established by and under the general supervision of the Fund’s Board of Directors. Aggregate fair valued securities represent 0.6% of the net assets of the Fund. |
|
(g) |
Rate quoted represents the seven-day yield of the fund. |
Interest rate swaps outstanding at September 30, 2012 were as follows:
|
Counterparty |
|
Notional |
|
Fixed |
|
Floating |
|
Termination Date |
|
Unrealized |
| ||
|
Royal Bank of Canada |
|
$ |
40,000,000 |
|
1.517 |
% |
0.228 |
% |
February 10, 2014 |
|
$ |
(734,021 |
) |
|
Royal Bank of Canada |
|
$ |
25,000,000 |
|
1.750 |
% |
0.217 |
% |
August 22, 2014 |
|
(719,329 |
) | |
|
Royal Bank of Canada |
|
$ |
45,000,000 |
|
1.695 |
% |
0.231 |
% |
February 2, 2015 |
|
(1,535,853 |
) | |
|
|
|
|
|
|
|
|
|
|
|
$ |
(2,989,203 |
) | |
(a) Based on LIBOR (London Interbank Offered Rate). Represents rates in effect at September 30, 2012.
Forward foreign currency exchange contracts outstanding at September 30, 2012 were as follows:
|
Counterparty |
|
Contracts to |
|
In Exchange |
|
Settlement |
|
Unrealized |
| |||
|
Brown Brothers, Harriman |
|
AUD |
2,717,610 |
|
USD |
2,802,065 |
|
10/2/12 |
|
$ |
(16,913 |
) |
|
Brown Brothers, Harriman |
|
AUD |
2,807,940 |
|
USD |
2,911,693 |
|
11/2/12 |
|
6,727 |
| |
|
Brown Brothers, Harriman |
|
EUR |
205,842 |
|
USD |
268,737 |
|
10/2/12 |
|
4,220 |
| |
|
Brown Brothers, Harriman |
|
EUR |
422,429 |
|
USD |
543,958 |
|
11/2/12 |
|
951 |
| |
|
Brown Brothers, Harriman |
|
EUR |
4,114,182 |
|
USD |
5,187,984 |
|
10/2/12 |
|
(98,945 |
) | |
|
Brown Brothers, Harriman |
|
EUR |
4,315,021 |
|
USD |
5,551,706 |
|
11/2/12 |
|
5,007 |
| |
|
Brown Brothers, Harriman |
|
GBP |
1,081,506 |
|
USD |
1,717,269 |
|
10/2/12 |
|
(29,146 |
) | |
|
Brown Brothers, Harriman |
|
GBP |
1,096,534 |
|
USD |
1,770,244 |
|
11/2/12 |
|
(273 |
) | |
|
Brown Brothers, Harriman |
|
USD |
1,746,200 |
|
GBP |
1,081,506 |
|
10/2/12 |
|
215 |
| |
|
Brown Brothers, Harriman |
|
USD |
2,825,477 |
|
AUD |
2,717,610 |
|
10/2/12 |
|
(6,500 |
) | |
|
Brown Brothers, Harriman |
|
USD |
5,556,847 |
|
EUR |
4,320,024 |
|
10/2/12 |
|
(5,401 |
) | |
|
|
|
|
|
|
|
|
|
|
|
$ |
(140,058 |
) |
Glossary of Portfolio Abbreviations
|
|
AUD |
Australian Dollar |
|
|
EUR |
Euro Currency |
|
|
FRN |
Floating Rate Note |
|
|
GBP |
Great British Pound |
|
|
REIT |
Real Estate Investment Trust |
|
|
TruPS |
Trust Preferred Securities |
|
|
USD |
United States Dollar |
Cohen & Steers Select Preferred and Income Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Note 1. Portfolio Valuation
Investments in securities that are listed on the New York Stock Exchange are valued, except as indicated below, at the last sale price reflected at the close of the New York Stock Exchange 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.
Securities not listed on the New York Stock Exchange 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 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
Cohen & Steers Select Preferred and Income Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
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 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 assigned level within the disclosure hierarchy. During the period ended September 30, 2012, transfers between Level 1 and Level 2 securities totaled $7,177,295.
The following is a summary of the inputs used as of September 30, 2012 in valuing the Fund’s investments carried at value:
Cohen & Steers Select Preferred and Income Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
|
|
|
Total |
|
Quoted Prices In |
|
Other Significant |
|
Significant |
| ||||
|
Preferred Securities - $25 Par Value - Banks |
|
$ |
52,632,684 |
|
$ |
48,863,934 |
|
$ |
— |
|
$ |
3,768,750 |
(a) |
|
Preferred Securities - $25 Par Value - Real Estate - Diversified |
|
7,361,230 |
|
5,546,435 |
|
1,814,795 |
|
— |
| ||||
|
Preferred Securities - $25 Par Value - Other Industries |
|
100,859,840 |
|
100,859,840 |
|
— |
|
— |
| ||||
|
Preferred Securities - Capital Securities - Banks |
|
66,333,089 |
|
— |
|
58,849,733 |
|
7,483,356 |
(a) | ||||
|
Preferred Securities - Capital Securities - Banks - Foreign |
|
63,342,239 |
|
— |
|
61,510,989 |
|
1,831,250 |
(b) | ||||
|
Preferred Securities - Capital Securities - Other Industries |
|
136,597,672 |
|
— |
|
136,597,672 |
|
— |
| ||||
|
Corporate Bonds |
|
17,439,359 |
|
— |
|
17,439,359 |
|
— |
| ||||
|
Money Market Funds |
|
3,100,016 |
|
— |
|
3,100,016 |
|
— |
| ||||
|
Total Investments(c) |
|
$ |
447,666,129 |
|
$ |
155,270,209 |
|
$ |
279,312,564 |
|
$ |
13,083,356 |
|
|
Forward foreign currency exchange contracts |
|
17,120 |
|
— |
|
17,120 |
|
— |
| ||||
|
Total Appreciation in Other Financial Instruments(c) |
|
$ |
17,120 |
|
$ |
— |
|
$ |
17,120 |
|
$ |
— |
|
|
Interest rate swaps |
|
(2,989,203 |
) |
— |
|
(2,989,203 |
) |
— |
| ||||
|
Forward foreign currency exchange contracts |
|
(157,178 |
) |
— |
|
(157,178 |
) |
— |
| ||||
|
Total Depreciation in Other Financial Instruments(c) |
|
$ |
(3,146,381 |
) |
$ |
— |
|
$ |
(3,146,381 |
) |
$ |
— |
|
(a) Deemed illiquid and valued by a pricing service which utilized independent broker quotes.
(b) Fair valued, pursuant to the Fund’s fair value procedures, utilizing inputs and assumptions which include dealer observations and recent comparables in similar securities.
(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:
|
|
|
Total |
|
Preferred |
|
Preferred |
|
Preferred |
|
Preferred |
| |||||
|
Balance as of December 31, 2011 |
|
$ |
5,193,214 |
|
$ |
3,426,562 |
|
$ |
1,766,652 |
|
$ |
— |
|
$ |
— |
|
|
Accretion |
|
3 |
|
— |
|
3 |
|
— |
|
— |
| |||||
|
Change in unrealized appreciation |
|
556,116 |
|
342,188 |
|
213,928 |
|
— |
|
— |
| |||||
|
Transfers into Level 3 |
|
9,314,606 |
|
— |
|
— |
|
7,483,356 |
|
1,831,250 |
| |||||
|
Transfers out of Level 3 |
|
(1,980,583 |
) |
— |
|
(1,980,583 |
) |
— |
|
— |
| |||||
|
Balance as of September 30, 2012 |
|
$ |
13,083,356 |
|
$ |
3,768,750 |
|
$ |
— |
|
$ |
7,483,356 |
|
$ |
1,831,250 |
|
The change in unrealized appreciation/depreciation attributable to securities owned on September 30, 2012 which were valued using significant unobservable inputs (Level 3) amounted to $342,188. Transfers are recognized at the end of the period.
Cohen & Steers Select Preferred and Income Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
The following table summarizes the quantitative inputs and assumptions used for investments categorized in Level 3 of the fair value hierarchy.
|
|
|
Fair Value |
|
Valuation |
|
Unobservable |
|
|
| |
|
|
|
at 9/30/2012 |
|
Technique |
|
Inputs |
|
Range |
| |
|
Preferred Securities - Capital Securities – Banks - Foreign |
|
$ |
1,831,250 |
|
Consensus Pricing |
|
Bid-Ask spread |
|
90.875 – 92.250 |
|
The significant unobservable inputs utilized in the fair value measurement of the Fund’s Level 3 equity investment in Preferred Securities - Capital Securities — Banks - Foreign is the bid-ask spread. Significant changes in these inputs may result in a materially higher or lower fair value measurement.
Note 2. Derivative Instruments
The following is a summary of the Fund’s derivative instruments as of September 30, 2012:
|
Interest rate swaps |
|
$ |
(2,989,203 |
) |
|
Forward foreign currency exchange contracts |
|
(140,058 |
) | |
|
|
|
$ |
(3,129,261 |
) |
The balance of outstanding interest rate swaps at September 30, 2012 is representative of the volume outstanding during the period ended September 30, 2012. The following summarizes the volume of the Fund’s forward foreign currency exchange contracts activity during the period ended September 30, 2012:
|
|
|
Forward Foreign |
| |
|
Average Notional Amount |
|
$ |
8,279,350 |
|
|
Ending Notional Amount |
|
$ |
10,777,601 |
|
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
Cohen & Steers Select Preferred and Income Fund, Inc.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
appreciation is reported as an asset and unrealized depreciation is reported as a liability on the Statement of Assets and Liabilities. 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 in the Statement of Operations. 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 Statement of Assets and Liabilities. 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.
Forward Foreign Currency Exchange Contracts: In connection with its investments in foreign securities, the Fund may be exposed to foreign currency risks associated with portfolio investments and therefore use forward foreign currency exchange contracts (forward contracts) to hedge or manage these exposures. Forward contracts represent obligations to purchase or sell foreign currency on a specified future date at a price fixed at the time the contracts are entered into. The risks include the potential inability of counterparties to meet the terms of their contracts and unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The resultant unrealized exchange gains and losses are recorded as unrealized foreign currency translation gains or losses. The Fund records realized gains or losses on delivery of the currency or at the time the forward contract is extinguished (compensated) by entering into a closing transaction prior to delivery.
Note 3. Income Tax Information
As of September 30, 2012, the federal tax cost and unrealized appreciation and depreciation in value of securities held were as follows:
|
Cost for federal income tax purposes |
|
$ |
412,472,326 |
|
|
Gross unrealized appreciation |
|
$ |
35,597,033 |
|
|
Gross unrealized depreciation |
|
(403,230 |
) | |
|
Net unrealized appreciation |
|
$ |
35,193,803 |
|
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: November 28, 2012 |
|
| |
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 | ||
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Name: |
Adam M. Derechin |
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Name: |
James Giallanza |
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Title: |
President and Principal Executive Officer |
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Title: |
Treasurer and Principal Financial Officer |
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Date: November 28, 2012 |
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