NEW YORK, April 7, 2008 /PRNewswire-FirstCall/ -- Cohen & Steers Capital Management, Inc. responded today to news that some broker/dealers have recently decided to reduce the value of the auction market preferred securities (AMPS) held in their clients' accounts. This action, the broker/dealers have said, reflects the current illiquidity in the AMPS market.
As we have previously announced, the credit quality of the AMPS issued by our closed-end funds is unchanged; they continue to be rated Aaa by Moody's Investor Services and AAA by Standard & Poor's. To maintain these ratings, which are not supported by any credit enhancements, our funds must meet the 2:1 asset coverage tests required by the Investment Company Act of 1940, as well as those of the ratings agencies. There can be no assurance, however, that continued illiquidity or changes in market conditions will not adversely affect the funds in the future.
Since the AMPS market stalled earlier this year, senior personnel of Cohen & Steers have been investigating alternative methods of financing for our closed-end funds that have issued AMPS, including lines of credit, commercial paper and new forms of preferred stock that could replace the existing AMPS. We are also working with the Investment Company Institute and the SEC, among others, to evaluate ways to provide liquidity to our funds' AMPS holders. Cohen & Steers' management views this issue as a top priority and is focusing its resources on developing a viable long-term solution. We are working to resolve this as quickly as possible, and we will keep our funds' shareholders fully informed of our progress. For more information and periodic updates, please visit http://www.cohenandsteers.com/.
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 listed infrastructure securities, 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 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.
The following factors, among others, could cause actual results to differ materially from forward-looking statements: (1) the ability of Cohen & Steers and the Cohen & Steers closed-end funds that have issued AMPS to develop and finalize fund-by-fund specific proposals to restructure the leverage of such funds; (2) the need for such Cohen & Steers funds to obtain formal fund-by- fund approval from the funds' Board of Directors for certain types of specific proposals as they are developed and finalized; (3) the ability of such Cohen & Steers funds to negotiate and obtain from third parties the necessary debt facilities and other commitments and agreements necessary for the Cohen & Steers funds to refinance all or a portion of their leverage on terms and conditions acceptable to the funds and in a timely manner; (4) the ability of such Cohen & Steers funds to develop new forms of preferred stock that could replace existing AMPS on terms acceptable to the Cohen & Steers funds and in a timely manner; (5) the effects of changes in market and economic conditions; (6) other legal and regulatory developments; and (7) other additional risks and uncertainties.
