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Investment Commentary as of March 2021

Closed-End Fund

Closed-end funds had a market-price return of 4.39% in the first quarter, as measured by the S-Network All Taxable Fixed Income CEF Index.1 By comparison, the S&P 500 Index2 and the Bloomberg Barclays Capital U.S. Aggregate Bond Index3 had total returns of 6.17% and ?3.37% for the quarter.

Investment Review

Closed-end funds advanced in the first quarter as the prospect of accelerating economic growth mostly outweighed inflation concerns. Economic news was generally favorable in the quarter, aided by significant fiscal stimulus and positive COVID vaccine rollout trends. However, this anticipated growth (along with manufacturing bottlenecks and higher commodity prices) generated concerns about inflation and the prospect of monetary policy accommodation ending sooner than previously anticipated.

Most credit-sensitive fixed income funds outperformed, in keeping with past economic recoveries. Expectations of faster economic growth particularly aided the collateralized loan (20.7% total return), bank loan (9.5%) and U.S. multi-sector bond (6.2%) sectors. High-yield bond funds (4.7%), which have meaningful exposure to energy, were also aided by a material increase in crude oil prices in the month. The equitysensitive convertible funds (5.6%) likewise produced healthy returns in the month, rising in part due to the improving outlook for corporate earnings.

Higher-quality/longer-duration debt securities were impacted by the sharp increase in long-term U.S. Treasury yields. The move brought the year-to-date total return on the 30-year U.S. Treasury bond to ?16.2%. The impact was most pronounced in taxable municipal bond (?6.5%) and U.S. government bond (?2.6%) funds but also affected returns for U.S. investmentgrade bond funds (1.9%).

We expect economic growth to improve as vaccines become more widely distributed. The recovery should continue on its current path amid optimism around reopenings and vaccine

distribution. We are not overly concerned about the recent rise

in long-term interest rates, as it reflects healthier economic

activity. We expect the rate momentum to continue to a

degree. However, we recognize the need to be prepared for

the consequences should rates rise significantly further, such

as a Federal Reserve effort to control the yield curve or a

market correction. For now, the backdrop of continued global

central bank accommodation and fiscal spending should be

supportive of a continued tightening in discounts in all closed-

end fund categories.

We believe successful launches of several large closed-end

funds in recent months is evidence of investor comfort and

interest in the higher-income-producing closed-end fund structures. We will continue to seek opportunities created by any market volatility in reaction to developments related to the

pandemic or evolving macro conditions.

(1) Returns are based on market price. Prior to 7/31/19, the benchmark was the Morningstar US All Taxable Ex-Foreign Equity Index. Thereafter, it is the S-Network All Taxable ex-Foreign plus Capped Muni CEF Index. The S-Network All Taxable ex-Foreign plus Capped Muni CEF Index is a market capitalization-weighted index comprising all taxable closed-end funds and Diversified Municipal Bond Funds, except for single-country funds and region-specific equity funds. The Morningstar US All Taxable Ex-Foreign Equity Index measures the market-capitalization-weighted total return of taxable equity and fixed income closed-end funds; it excludes international, regional and country closed-end funds. Index returns update frequently and are subject to change. All closed-end fund sector returns are based on Cohen & Steers calculations and classifications of the current U.S. listed closed end fund universe. (2) The S&P 500 Index is an unmanaged index of 500 large capitalization, publicly traded stocks that is frequently used as a general measure of stock market performance. (3) The Barclays Capital U.S. Aggregate Bond Index includes U.S. government, corporate and mortgage-backed securities with maturities of at least one year. Benchmark returns are shown for comparative purposes only and may not necessarily be representative of the Fund's portfolio.

Discounts to net asset value (NAV) narrowed for most closedend fund categories. The average discount to NAV for taxable fixed-income slipped to 0.1%--putting them below their longterm average of 3.3%. National municipal funds' average discount narrowed to 2.2%, compared to their long-term average of 3.9%. The NAV for equity funds narrowed to 3.0%, compared with their long-term average of 5.3%.

Market demand for new closed-end funds remains high. Initial public offerings for closed-end funds continued at a pace not seen since 2013. We believe this reflects investor interest in the high income available from closed-end fund structures. Also likely contributing to the demand has been the shift to the "2.0" IPO structure, with investors no longer paying the upfront underwriting fees.

Investment Outlook



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Investment Commentary as of March 2021

Closed-End Fund

Closed End Sector Returns

Q1 2021

YTD 2021

Market NAV Market NAV

Single Commodity

-9.17% -9.12% -9.17% -9.12%

Diversified Commodity

13.67% 6.52% 13.67% 6.52%

Option Income

6.47% 4.77% 6.47% 4.77%

US General Equity

11.94% 8.35% 11.94% 8.35%

US Hybrid

5.90% 5.65% 5.90% 5.65%

Global Equity

12.86% 6.23% 12.86% 6.23%

Global Hybrid

9.06% 3.03% 9.06% 3.03%

Sector Equity

1.81% 1.63% 1.81% 1.63%

MLP

28.48% 20.13% 28.48% 20.13%

Real Estate

13.86% 6.75% 13.86% 6.75%

Utilities

3.74% 4.93% 3.74% 4.93%

Convertibles

5.58% 1.82% 5.58% 1.82%

EM Bond

-1.48% -5.24% -1.48% -5.24%

Global Income

0.61% -1.86% 0.61% -1.86%

US Government

-2.59% -2.22% -2.59% -2.22%

High Yield

4.68% 2.08% 4.68% 2.08%

Bank Loan

9.48% 3.45% 9.48% 3.45%

Multi-Sector

6.20% 1.56% 6.20% 1.56%

Short Duration

4.25% 1.12% 4.25% 1.12%

Investment Grade

1.94% 0.95% 1.94% 0.95%

Preferreds

2.21% 1.73% 2.21% 1.73%

US Sector Bond

5.78% 2.36% 5.78% 2.36%

Taxable Municipal

-6.53% -3.28% -6.53% -3.28%

Regional EME

4.79% 2.67% 4.79% 2.67%

Diversified EME

5.73% 5.46% 5.73% 5.46%

Regional DME

5.16% 2.49% 5.16% 2.49%

National Municipal

1.26% 0.17% 1.26% 0.17%

CA State Municipal

-0.36% -0.73% -0.36% -0.73%

NY State Municipal

2.38% -0.32% 2.38% -0.32%

State Municipal-Other

1.75% -0.16% 1.75% -0.16%

Municipal High

3.90% 2.36% 3.90% 2.36%

Source: Cohen & Steers.

Data quoted represents past performance, which is no guarantee of future results. This information is not representative of any Cohen & Steers account and no such account will seek to replicate an index. You cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes.

Data quoted represents past performance, which is no guarantee of future results.

The S-Network All Taxable ex-Foreign plus Capped Muni CEF Index is a market capitalization-weighted index comprising all taxable closed-end funds and Diversified Municipal Bond Funds, except for single-country funds and region-specific equity funds. The index reconstitutes and rebalances quarterly.

Index Source: S-Network Closed End Fund Indexes are calculated, distributed and marketed by S-Network Global Indexes Inc. which have been licensed for use. All content of the S-Network Closed End Fund Indexes 2021 are the intellectual property of S-Network Global Indexes Inc.

An investor cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes. Index comparisons have limitations as volatility and other characteristics may differ from a particular investment.

The views and opinions in the preceding commentary are as of the date of publication and are subject to change. There is no guarantee that any historical trend discussed above will be repeated in the future, and there is no way to predict precisely when such a trend might begin.

The information presented above does not represent the performance of any fund or other account managed or serviced by Cohen & Steers, and there is no guarantee that investors will experience the type of performance listed above. This material should not be relied upon as investment advice, does not constitute a recommendation to buy or sell a security or other investment and is not intended to predict the performance of any investment.



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