Cohen & Steers MLP & Energy Opportunity Fund

Transcription

1 Mutual Fund First Quarter 2017 Cohen & Steers MLP & Energy Opportunity Fund NASDAQ Symbols: Class A: MLOAX Class C: MLOCX Class I: MLOIX Class R: MLORX Class Z: MLOZX This Fund offers investors the potential for: Participation in the fundamental upcycle emerging in North American midstream energy A total-return strategy targeting the midstream portion of the energy value chain Diversification through an increasingly complex real asset class Alternative tax reporting in contrast to direct MLP investments Tap into the Real Return Potential of the Midstream Energy Value Chain The midstream energy industry lies in what we perceive as the sweet spot of the North American energy industry. Many investors turn to this sector for the high income potential of companies that gather, process, transport and store crude oil, natural gas and natural gas liquids (NGLs). Often, these companies are organized as tax-efficient master limited partnerships (MLPs) a structurally efficient vehicle for the delivery of income. We believe income-oriented strategies focused primarily on higher-yielding MLPs are only a partial solution for investors seeking access to the midstream energy theme. We believe that, ideally, investments in these securities should be part of a total-return approach that draws from a broader universe, including MLPs and traditional corporations in the U.S. as well as Canada. cohenandsteers.com This brochure must be accompanied by the most recent Cohen & Steers MLP & Energy Opportunity Fund fact sheet and summary prospectus.

2 Investing in Real Assets Building for Tomorrow Real assets play a critical, yet often underserved role, in investor portfolios. They offer the potential for meaningful diversification and the ability to deliver attractive full-cycle returns that may lead to improved risk-adjusted returns, as well as positive inflation sensitivity to protect against the possible damaging effects of accelerating inflation on a portfolio concentrated in stocks and bonds. Through MLPs and other midstream companies, investors can gain access to a core real assets category with the potential for attractive current income and long-term growth, as well as a low correlation with other asset classes. Cohen & Steers Real Assets Strategies Global Real Estate Securities Commodities Global Natural Resource Equities Global Listed Infrastructure and MLPs Source: Cohen & Steers. Investing in the Emerging Fundamental Upcycle in North American Midstream Energy We believe North America is well positioned to become the incremental global supplier of energy, now that the market has moved to balanced conditions following several years that were characterized by volatile energy prices. Volatility that was due to an oversupplied market and policy changes by the Organization of Petroleum Exporting Countries (OPEC). The North American energy industry continues to be transformed by the development of vast reservoirs of oil, natural gas and NGLs, made more economical by advanced technologies and drilling techniques. Midstream energy companies that own and operate the infrastructure to transport energy commodities to market play a critical role in this transformation. Midstream energy companies typically operate under longterm contracts, collecting fees for the utilization of their pipeline capacity, typically with limited direct commodity price exposure. This business model is recognized as generating relatively predictable and attractive cash flows. We believe these cash flow streams should grow over time, based on the attractive long-term fundamentals and capital investment opportunities driven by expanding North American energy production. MLP Basics A Master Limited Partnership (MLP) is generally a publicly traded partnership; units are listed on exchanges such as the NASDAQ and NYSE. MLPs may not be taxable entities under U.S. law if they meet certain regulatory conditions. Instead, MLPs pass through the income and taxes of the business on a prorata basis to unit holders, who invest as limited partners. In the absence of entity-level taxation, an MLP s cost of capital tends to be lower, and the amounts available for distribution to investors tend to be higher, relative to the dividend payouts of corporations. The first MLP was launched in Today, there are more than 100 MLPs with a total equity market capitalization approaching $400 billion, primarily focused on energy-related industries and natural resources. (1) (1) At December 31, Source: Bloomberg for market capitalization data. Custom universe of approximately 100 MLP companies constructed by Cohen & Steers using qualitative and quantitative proprietary analysis. 2

3 Unlocking Value in a Dislocated Asset Class The shale revolution hit its stride in 2011 as new drilling techniques allowed producers to profitably unlock oil from tight formations, boosting demand for midstream services. Following OPEC s 2014 decision to not cut production (bid to recapture market share lost to shale oil), MLPs and midstream energy companies entered a steep bear market due to concerns of reduced throughput volumes and increased credit and counterparty risk. Alerian MLP Index While the landscape has improved, MLPs remain substantially below their 2014 high. -41% +48% The midstream landscape has improved significantly since early 2016, although the market remains significantly below its 2014 high. We believe current valuations present a compelling opportunity to build long-term allocations At March 31, Source: Bloomberg, Cohen & Steers. Data quoted represents past performance, which is no guarantee of future results. The information presented above does not reflect 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 reflected above. There is no guarantee that any historical trend illustrated above will be repeated in the future, and there is no way to predict precisely when such a trend will begin. See back page for index definitions and additional disclosures. Oil Market Rebalancing Is Underway The oil market is in the process of rebalancing following several years of global oversupply. The energy industry needs to replace supply declines and meet demand growth to balance the global markets. As the market tightens in 2017 and beyond, crude prices will need to rise in order to bring new supply on line to meet future demand growth. North American shale oil is relatively cheap to produce and quick to market, positioning it to play a pivotal role in meeting the market s future needs. We expect that this will drive cash flows and investment opportunities for midstream companies. Global Supply/Demand Balance 2 Market Balance (Bpd, in Millions) Market Balance (lhs) Demand (rhs) Supply (rhs) Total Supply/Demand (Bpd, in Millions) E At March 31, Source: Cohen & Steers and Energy Information Administration (EIA). Market assumptions based on our estimates for global crude oil supply and demand trends. Data quoted represents past performance, which is no guarantee of future results. There is no guarantee that any historical trend illustrated above will be repeated in the future, and there is no way to predict precisely when such a trend will begin. See back page for index definitions and additional disclosures. 3

4 Rising Volumes + Few New Pipeline Projects = Fundamental Upcycle for Midstream Midstream companies typically charge fees for their services, so greater cash flows and growth opportunities are tied to volumes moving through the pipelines more so than energy prices. As North American producers gain market share, we expect domestic energy production to grow again, flowing through to midstream assets. Looking at crude oil specifically, very little new pipeline capacity is projected to be built once projects now under construction or in development are completed. But domestic production is expected to grow. As a result, we believe pipeline utilization will improve, rising from around 70% today to over 90% by The fee-based contractual structure of many midstream companies will provide upside to these rising energy volumes, rewarding investors over the long term. We also expect volume growth for other energy commodities, such as liquefied natural gas and natural gas liquids, to accelerate as North America gains market share as a global energy supply source. Capacity Constraints Potentially Lie Ahead Change in Supply (lhs) Change in Demand (lhs) Pipeline Utilization (rhs) Shale Renaissance exuberance leads to pipeline overbuild. Project cancellations and limited new spending may create increased pipeline utilization as fundamentals improve. Year-Over-Year Change in Crude Oil Pipeline Supply/Demand (a) 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Pipeline Utilization (b) 2013A 2014A 2015A 2016E 2017E 2018E 2019E 2020E At March 31, Source: Wells Fargo, Cohen & Steers. Data quoted represents past performance, which is no guarantee of future results. There is no guarantee that any historical trend illustrated in this report will be repeated in the future, and there is no way to predict precisely when such a trend will begin. (a) Wells Fargo data aggregated across the four major U.S. oil basins (Permian, Bakken, Niobrara and Eagle Ford). (b) Pipeline utilization is a measure of available contracts and volumes for existing pipelines and is provided by Wells Fargo. Note that this data point is separate from changes in supply and demand. See back page for index definitions and additional disclosures. Rising oil demand and limited new pipeline capacity to meet that demand may bolster cash flow growth for midstream companies. 4

5 Midstream Investing Is More Than Just MLPs The midstream space encompasses a broad set of entity structures, including both master limited partnerships (MLPs) and traditional corporations. Mutual funds that fully embrace the broad midstream energy universe may offer better total return potential than C-corp funds, while providing potentially greater flexibility to adapt to changing markets, in our opinion. Master limited partnerships (MLPs): These are companies formed under U.S. law that do not have entity-level taxation. Because of depreciation adjustments that result in return of capital, they maximize the delivery of tax-deferred income. General partner C-corps (GPs): GPs manage the operations of MLPs. Though some GPs have elected to be taxed as partnerships, the majority are structured as traditional corporations. Midstream corporations: These companies own midstream energy assets such as pipelines but have elected to house them in corporations and do not use the GP/LP structure. Diversified utilities: Certain utilities have significant stakes in natural gas pipeline assets and/or GP interests in MLPs, though a substantial portion of their cash flows are derived from the utility assets. Canadian midstream companies: A number of companies own both U.S. and Canadian midstream assets and are domiciled in Canada. Midstream Universe Goes Beyond Master Limited Partnerships (MLPs) Market Cap ($ billions) Non-MLPs 53% $150 $131 $141 $37 MLPs 42% $418 Company Market Cap ($ billions) Percentage of Market Cap Select Companies (a) MLPs $418 46% EPD, RMP General Partner C-Corps Midstream Corporations Canadian Midstream Midstream Utilities $37 4% OKE, WMB $141 19% KMI, TRGP $150 16% TRP, ENB $131 14% SRE, CNP Total $ % At March 31, Source: Bloomberg and Cohen & Steers. (a) Select companies (EPD: Enterprise Products Partners, represented 5.1% of the Cohen & Steers Energy & Opportunity Fund the Fund as of 3/31/17), (RMP: Rice Midstream Partners, represented 1.5% of the Fund as of 3/31/17), (OKE: ONEOK Inc, represented 0.9% of the Fund as of 3/31/17), (WMB: Williams Companies, Inc, represented 6.8% of the Fund as of 3/31/17), (KMI: Kinder Morgan, Inc., represented 6.0% of the Fund as of 3/31/17), (TRGP: Targa Resources Corp., represented 5.9% of the Fund as of 3/31/17), (TRP: TransCanada Corp, represented 6.3% of the Fund as of 3/31/17), (ENB: Enbridge, Inc., represented 4.3% of the Fund as of 3/31/17), (SRE: Sempra Energy, represented 1.7% of the Fund as of 3/31/17), (CNP: CenterPoint Energy, Inc., represented 0.0% of the Fund as of 3/31/17), (NEP: NextEra Energy Partners, represented 0.8% of the Fund as of 3/31/17), (PEGI: Pattern Energy Group, Inc. represented 1.0% of the Fund as of 3/31/17). See back page for index definitions and additional disclosures. How Fund Structure Affects Portfolio Composition Mutual funds that invest in midstream energy can be structured in one of two ways: as an investment company treated as a traditional corporation (C-corp) or as a regulated investment company (RIC). C-corp funds have no limit on the MLP investments they can hold, and by design tend to own mostly MLPs. Since MLPs distribute substantially all of their cash flow, these funds generally offer high yields, which may make C-corp funds suitable for investors primarily interested in income. However, these portfolios are taxable at the fund level, which can hinder performance. Furthermore, as MLPs represent less than half the midstream universe, many of these funds may be underinvested in potentially attractive, non-mlp midstream opportunities. RIC funds, including the Cohen & Steers MLP & Energy Opportunity Fund, are legally required to hold no more than 25% of total assets in securities that are taxed as partnerships. As a result, RIC funds tend to have lower yields than C-corp funds. But with a broader mix of midstream energy holdings, including more growth-oriented investments, RIC funds may be seen as better total-return vehicles. 5

6 RIC Funds Offer a More Tax-Efficient Vehicle for Total Returns as Compared to C-corp Funds When a C-corp fund s position in an investment increases in value, or when it receives return-of-capital distributions from underlying MLP investments, the fund has to record the future tax obligation on this unrealized gain. This deferred tax liability (DTL) is subtracted from the fund s net asset value (NAV) and results in a higher gross expense ratio. The C-corp fund shareholder therefore suffers from double taxation, first at the fund level on unrealized gains (even though the underlying assets are tax deferred) and then at the individual level on any realized gains. This double taxation may potentially reduce the investor s return on investment. As a result, across a full cycle, a C-corp fund may capture only 65% of the market s upside. A RIC fund is not a taxable entity and therefore does not accrue DTLs from unrealized gains. Instead, income and realized net long-term capital gains pass through the RIC to the investor. As a result, RIC fund expense ratios do not include tax adjustments. Effect of Taxes on Hypothetical Fund Purchase (a) For illustration purposes, this hypothetical scenario assumes $100 initial investment, a 50% increase in market value and a flat 35% tax rate for both individuals and corporations. C-Corp Fund RIC Fund Purchase $100 $100 Hypothetical Gain 50% 50% NAV Before Deferred Tax Liability $150 $150 Taxes Paid Due to DTL (35%) $17.50 $0 Adjusted NAV (b) $ $150 Gain $32.50 $50 Personal Capital Gains Tax Owed if Investment Is Sold (35%) $11.38 $17.50 After-Tax Gain $21.13 $32.50 Total Tax Rate on Investment 58% 35% At March 31, Source: Cohen & Steers. Assumes a 35% tax rate for both corporations and individuals; actual tax rates may differ. This information is provided for illustrative purposes only and should not be construed as legal or tax advice. You should consult your financial or tax advisor regarding your individual circumstances. (a) RIC v. C-corp hypothetical illustration pertains primarily to open-end finds. Closed-end funds with RIC or C-corp status face similar tax impact on returns; however, a number of closed-end funds that invest in midstream energy and MLPs employ leverage in order to meet their income targets, which amplifies the market returns and tax impact. (b) Assumes the C-corp fund does not record a valuation allowance against its deferred tax assets, if any. See back page for index definitions and additional disclosures. MLPs Continue to Provide Attractive Income MLPs are pass-through tax vehicles that pay no tax at the corporate level. This tax efficiency and the relatively stable nature of the midstream business allow MLPs to distribute a high percentage of their cash flow to shareholders, providing an excellent source of current income. MLP yields are currently considerably higher than other income-paying securities, including REITs and utilities. Their yields are also substantially higher than what s currently available from high-quality bonds. And, unlike with most bonds, MLP distributions may increase over time. Coverage for MLP distributions has vastly improved since the industry made steep cuts to payouts during the recent bear market, a process that strengthened balance sheets and reduced companies cost of capital. Even after these distribution cuts, the current yield on MLPs averages 7.0%. And if midstream energy fundamentals continue to improve as we expect, MLP distribution growth may accelerate from essentially zero at the end of 2016 to a 4% 7% annualized rate over the medium term. MLPS Offer Competitive Yields Current Yield 8% 7% 6% 5% 4% 3% 2% 1% MLPs REITs Utilities Bonds At March 31, Source: Bloomberg and FTSE. Data quoted represents past performance, which is no guarantee of future results. Yields represented by the Alerian MLP Index, FTSE NAREIT Equity REIT Index, S&P 1500 Utilities Index and 10-year U.S. Treasury bond. See back page for index definitions and additional disclosures

7 Our Investment Team Combines Deep Industry Experience and Global Capabilities The Cohen & Steers Global Infrastructure and MLP team combines over 45 years of experience investing in MLPs and related midstream energy companies. MLPs and related midstream energy investments have been a core component of the Cohen & Steers Global Listed Infrastructure strategy since The team managed approximately $5.7 billion of listed infrastructure and MLPs as of March 31, Robert Becker, Senior Vice President and Portfolio Manager Ben Morton, Senior Vice President and Portfolio Manager Tyler Rosenlicht, Vice President and Portfolio Manager The Cohen & Steers MLP & Energy Opportunity Fund structure offers several potential advantages over direct investments in MLPs: Simplified investor tax reporting Investors in the Fund will receive a single Form There are no Schedule K-1 or multiple state income tax filings. Potential for enhanced diversification (1) MLPs historically exhibit low correlations to stocks and bonds. The Fund will be diversified across energy sectors and holdings. Access to investments not typically available to retail investors The Fund may invest in MLPs through direct placements, which are often only available to institutional investors. Potential for inclusion in IRAs and other retirement savings accounts Because the Fund s distributions are not considered unrelated business taxable income (UBTI), IRAs, 401(k) plans and other employee benefit plans that are sensitive to UBTI may invest in the Fund. NASDAQ Symbols Class A: MLOAX Class C: MLOCX Class I: MLOIX Class R: MLORX Class Z: MLOZX For more information, contact your financial advisor or visit our website at cohenandsteers.com. (1) Source: Bloomberg and Cohen & Steers, based on correlations over a 10-year period, as of December 31, Diversification does not ensure a profit or protect against loss. Correlation coefficients are based on monthly data and measure the degree to which returns move together. The correlation coefficient will vary from -1.0 (perfect negative correlation) to 1.0 (perfect positive correlation). 7

8 Mutual Fund First Quarter 2017 The Cohen & Steers MLP & Energy Opportunity Fund offers five classes of shares. General information on applicable minimums, sales charges and fees is outlined below. Please see the relevant prospectus for more detailed information. Class A MLOAX No minimum investment. Maximum front-end sales charge of 4.50% and ongoing distribution fees. Reduced front-end sales charges are available. Please read the Fund s prospectus for details. Class C MLOCX No minimum investment. No front-end sales charge, but a contingent deferred sales charge of 1.00% for shares redeemed within one year of purchase. Higher ongoing distribution and service fees. Class I MLOIX Minimum investment of $100,000. No sales charge or distribution fees. Class R MLORX No minimum investment. Available for purchase only through qualified group retirement plans. No sales charge. Expense ratio reflects a distribution fee. Class Z MLOZX No minimum investment. Available for purchase only through qualified group retirement plans. No sales charge or distribution fees. Data quoted represents past performance, which is no guarantee of future results. There is no guarantee that investors will experience the type of performance reflected in this commentary. There is no guarantee that any historical trend illustrated in this brochure will be repeated in the future, and there is no way to predict precisely when such a trend will begin. There is no guarantee that a market forecast made in this brochure will be realized. This information is provided for illustrative purposes only and should not be construed as legal or tax advice. The mention of specific securities is not a recommendation or solicitation to buy or hold a particular security and should not be relied upon as investment advice. You should consult your financial advisor regarding your individual circumstances. The views and opinions in the preceding commentary are as of March 31, 2017, and are subject to change without notice. This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice and is not intended to predict or depict performance of any investment. We consider the information in this commentary to be accurate, but we do not represent that it is complete or should be relied upon as the sole source of suitability for investment. Please consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. A summary prospectus and prospectus containing this and other information may be obtained from your financial advisor, by calling or by visiting cohenandsteers.com. Please read the summary prospectus or prospectus carefully before investing. Risks of investing in MLP Securities An investment in MLPs involves risks that differ from a similar investment in equity securities, such as common stock, of a corporation. Holders of equity securities issued by MLPs have the rights typically afforded to limited partners in a limited partnership. As compared to common shareholders of a corporation, holders of such equity securities have more limited control and limited rights to vote on matters affecting the partnership. There are certain tax risks associated with an investment in equity MLP units. Additionally, conflicts of interest may exist among common unit holders, subordinated unit holders and the general partner or managing member of an MLP; for example, a conflict may arise as a result of incentive distribution payments. MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment, including the risk that an MLP could lose its tax status as a partnership. MLPs may trade less frequently than larger companies due to their smaller capitalizations, which may result in erratic price movement or difficulty in buying or selling. MLPs may have additional expenses, as some MLPs pay incentive distribution fees to their general partners. The value of MLPs depends largely on the MLPs being treated as partnerships for U.S. federal income tax purposes. If MLPs were subject to U.S. federal income taxation, distributions generally would be taxed as dividend income. As a result, after-tax returns could be reduced, which could cause a decline in the value of MLPs. If MLPs are unable to maintain partnership status because of tax law changes, the MLPs would be taxed as corporations and there could be a decrease in the value of the MLP securities. Cohen & Steers MLP & Energy Opportunity Fund is distributed by Cohen & Steers Securities, LLC. Cohen & Steers UK Limited is authorized and regulated by the Financial Conduct Authority with FRN Cohen & Steers Japan, LLC, is a registered financial instruments operator (investment advisory and agency business with the Financial Services Agency of Japan and the Kanto Local Finance Bureau No. 2857) and is a member of the Japan Investment Advisers Association. Index Definitions An investor cannot invest directly in an index, and index performance does not reflect the deduction of any fees, expenses or taxes. 10-Year U.S. Treasury: A debt obligation issued by the U.S. Treasury that has a term of approximately 10 years. The Alerian MLP Index is a float-adjusted market-capitalization-weighted index that consists of the 50 most prominent large- and mid-cap energy master limited partnerships. The FTSE NAREIT Equity REIT Index contains all tax-qualified REITs except timber and infrastructure REITs with more than 50% of total assets in qualifying real estate assets other than mortgages secured by real property that also meet minimum size and liquidity criteria. The S&P 1500 Utilities Index is an unmanaged market-capitalization-weighted index of 60 companies for which the primary business involves the generation, transmission and/ or distribution of electricity and/or natural gas. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE NOT INSURED BY ANY GOVERNMENT AGENCY Copyright 2017 Cohen & Steers, Inc. All rights reserved. cohenandsteers.com GB5014 Q117

9 Factsheet March 31, 2017 Cohen & Steers MLP & Energy Opportunity Fund The investment objective of the Fund is to provide attractive total return. The Fund seeks to achieve its investment objective through investments in energy-related master limited partnerships (MLPs) and securities of companies that derive at least 50% of their revenues or operating income from the exploration, production, gathering, transportation, processing, storage, refining, distribution or marketing of natural gas, natural gas liquids (including propane), crude oil, refined petroleum products, coal or and other energy resources. General Information CUSIP Symbol A Shares 19249F107 MLOAX C Shares 19249F206 MLOCX I Shares 19249F305 MLOIX R Shares 19249F503 MLORX Z Shares 19249F404 MLOZX NAV per Share (Class A) $8.76 Total Net Assets $112.9 Million Number of Holdings 46 Dividend Frequency Quarterly Expense Ratio Gross (Class A) (1) 2.22% Expense Ratio Net (Class A) (1) 1.46% (1) As disclosed in the April 1, 2017 prospectus. Cohen & Steers Capital Management, Inc., the Fund's investment advisor (the "Advisor"), has contractually agreed to waive its fee and/or reimburse expenses through June 30, 2018 so that the Fund's total annual operating expenses (excluding acquired fund fees and expenses, taxes and extraordinary expenses) do not exceed 1.45% for Class A shares. Absent such arrangements, returns would have been lower. This contractual agreement can be amended at any time by agreement of the Fund and the Advisor and will terminate automatically in the event of termination of the investment advisory agreement between the Advisor and the Fund Portfolio Managers Managing Years of Fund Since Experience Robert Becker Inception 21 Benjamin Morton Inception 19 Tyler Rosenlicht Total Returns Alerian Energy Excluding Sales Including Sales Infrastructure Charge Charge (1) Index Alerian MLP Index QTD 2.12% -2.48% 2.64% 3.95% 1 Year 36.14% 30.02% 37.87% 28.32% 3 Year -3.34% -4.81% 0.61% -5.17% Since Inception (12/20/13) -0.41% -1.80% 2.63% -3.01% (1) Maximum 4.5% sales charge; returns for other share classes will differ due to differing expense structures and sales charges. Data quoted represents past performance, which is no guarantee of future results. Performance returns stated net of fees. There is no guarantee that any historical trend illustrated in this report will be repeated in the future, and there is no way to predict when such a trend will begin. There is no guarantee that any market forecast in this report will be realized. Current performance may be lower or higher than the performance quoted. The investment return and the principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost. Periods greater than 12 months are annualized. Returns are historical and include change in share price and reinvestment of all distributions. Month-end performance information can be obtained by visiting our website at cohenandsteers.com. There is no guarantee that any investment objective will be achieved. An investor cannot invest directly in an index, and index performance does not reflect the deduction of fees, expenses or taxes. During certain periods presented above, the Advisor waived fees and/or reimbursed expenses. Without this arrangement, performance would be lower. Sector Diversification 32% Diversified 22% Crude / refined products 17% Gathering & processing 13% Natural gas pipelines 6% Other 5% Diversified utilities 5% Marine shipping / offshore Portfolio weights are subject to change without notice. Due to rounding, values might not add up to 100%. Other includes Oil & gas storage, Cash, Other Assets and Compression. Geographic Diversification 78% United States 20% Canada 2% Other Portfolio weights are subject to change without notice. Due to rounding, values might not add up to 100%. Other includes Cash and Norway. cohenandsteers.com

10 Factsheet March 31, 2017 Cohen & Steers MLP & Energy Opportunity Fund Cohen & Steers is a global investment manager specializing in liquid real assets, including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Hong Kong, Tokyo and Seattle. Risks. There are special risks associated with investing in the Fund. Since the Fund concentrates its assets in global infrastructure securities the fund will be more susceptible to adverse economic or regulatory occurrences affecting global infrastructure companies than an investment company that is not primarily invested in global infrastructure companies. Infrastructure issuers may be subject to regulation by various governmental authorities and may also be affected by governmental regulation of rates charged to customers, operational or other mishaps, tariffs and changes in tax laws, regulatory policies and accounting standards. Special risks of investing in foreign securities include (i) currency fluctuations, (ii) lower liquidity, (iii) political and economic uncertainties, and (iv) differences in accounting standards. Certain foreign securities may represent small- and medium-sized companies, which may be more susceptible to price volatility and less liquid than larger companies. The Fund is classified as a "non-diversified" fund under the federal securities laws because it can invest in fewer individual companies than a diversified fund. However, the Fund must meet certain diversification requirements under the U.S. tax laws. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE NOT INSURED BY ANY GOVERNMENT AGENCY Top Ten Holdings Name % of Market Value The Williams Companies Inc. 6.8% TransCanada Corp. 6.3% Kinder Morgan Inc. 6.0% Targa Resources Corp. 5.8% Enterprise Products Partners 5.0% Pembina Pipeline Corp. 4.7% Energy Transfer Equity Lp 4.7% Enbridge Inc. 4.3% Plains GP Holdings LP 4.0% Enbridge Energy Mgmt LLC 3.7% The mention of specific securities is not a recommendation or solicitation to buy, sell or hold any particular security and should not be relied upon as investment advice. Weights may vary over time and holdings are subject to change without notice. Please consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. A summary prospectus and prospectus containing this and other information may be obtained by visiting cohenandsteers.com or by calling Please read the summary prospectus and prospectus carefully before investing. The Fund may pay distributions in excess of its net investment company taxable income, and this excess would be a return of capital distribution from the Fund's assets. The estimated composition of each distribution, including any return of capital, will be provided to shareholders of the record and is also available at cohenandsteers.com. Please note that these estimates may change substantially by year-end due to portfolio activity and tax recharacterizations, and shareholders will be notified following year-end regarding the final composition of all distributions via Form 1099-DIV. The Alerian Energy Infrastructure Index is a tier-weighted index of 30 core North American energy infrastructure companies that engage in the pipeline transportation, storage, and processing of energy commodities. The Alerian MLP Index is a float-adjusted, market-capitalization-weighted index that consists of the 50 most prominent large- and mid-cap energy master limited partnerships. MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment including the risk that an MLP could lose its tax status as a partnership. MLPs may trade less frequently than larger companies due to their small capitalizations which may result in erratic price movement or difficulty in buying or selling. A significant portion of the Fund's distributions will consist of return of capital for U.S. federal tax purposes, which reduce a shareholder's adjusted cost basis in the Fund's shares and impacts the amount of any capital gains or loss realized by the shareholder upon selling the Fund's shares. Once a shareholder's adjusted cost basis has been reduced to zero (due to return of capital), any further return of capital will be treated as a capital gain. MLPs may have additional expenses, as some MLPs pay incentive distribution fees to their general partners. The value of MLPs depends largely on the MLPs being treated as partnerships for U.S. federal income tax purposes. If MLPs were subject to U.S. federal income taxation, distributions generally would be taxed as dividend income. As a result, after-tax returns could be reduced, which could cause a decline in the value of MLPs. If MLPs are unable to maintain partnership status because of tax law changes, the MLPs would be taxed as corporation and there could be a decrease in the value of the MLP securities. An investor cannot invest directly in an index, and index performance does not reflect the deduction of fees, expenses or taxes. This fact sheet is provided for informational purposes and is not an offer to purchase or sell Fund shares. Cohen & Steers U.S. registered open-end funds are distributed by Cohen & Steers Securities, LLC, and are only available to U.S. residents. cohenandsteers.com OFS14 Q117