3 Cohen & Steers Mutual Funds to Navigate the Current Market
Cohen & Steers is best known for its expertise in actively managed real estate, preferred securities, infrastructure and other real asset investments, making its mutual funds a differentiated option for investors seeking income, diversification and inflation-sensitive assets rather than broad-market equity exposure. These strategies can complement traditional stock and bond portfolios, although their performance is often influenced by interest-rate movements and conditions in property and infrastructure markets.
The firm’s financial results for the second quarter of 2026 reflected steady business momentum. Cohen & Steers reported revenue of approximately $152 million, up from the prior-year period and ahead of expectations, supported by higher average assets under management and management fees. Adjusted earnings per share came in at 85 cents, narrowly missing the Zacks Consensus Estimate, while profitability remained healthy despite a competitive investment environment.
For investors evaluating mutual funds, Cohen & Steers’ offerings may be attractive because they provide specialized exposure that is difficult to replicate through traditional diversified equity funds. The firm’s long-standing expertise in listed real estate securities, preferred securities and infrastructure can help investors diversify portfolios and potentially benefit from income generation and long-term structural themes. At the same time, these funds carry sector concentration risk and can be more volatile during periods of rising interest rates or weakness in real estate markets.
Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have thus selected three mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or #2 (Buy), have positive three-year and five-year annualized returns, have minimum initial investments within $5000 and carry a low expense ratio.
Cohen & Steers Preferred Securities and Income SMA Shares PISHX primarily invests in preferred and other income securities issued by domestic and international companies, with a strong financial sector focus and exposure to emerging markets.
Robert Kastoff has been a lead manager of PISHX since 2013. Three top holdings for PISHX are Total Preferred Stock (97.6%), Total Cash (1.7%) and Total Others (0.5%).
PISHX’s 3-year and 5-year annualized returns are 11.6% and 4.3%, respectively, and its net expense ratio is 0.10%. PISHX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Cohen & Steers Real Estate Securities CSZIX primarily invests in income-producing real estate equities, including REITs, with selective exposure to international real estate companies and a non-diversified portfolio.
Ji Zhang has been the lead manager of CSZIX since 2018. Three top holdings for CSZIX are WellTower (14%), Digital Realty Trust (9.7%) and Crown Castle (6.5%).
CSZIX’s 3-year and 5-year annualized returns are 10.6% and 4.4%, respectively, and its net expense ratio is 0.75%. CSZIX has a Zacks Mutual Fund Rank #2.
Cohen & Steers Low Duration Preferred and Income Fund LPXAX primarily invests in short-duration preferred and other income securities, aiming to generate high current income while preserving capital through reduced interest-rate sensitivity.
Jerry Dorost has been the lead manager of LPXAX since 2022. Three top holdings for LPXAX are Total Preferred Stock (90.1%), Total Cash (0.8%) and American Homes 4 Rent (0.7%).
LPXAX’s 3-year and 5-year annualized returns are 8% and 3.6%, respectively, and its net expense ratio is 0.91%. LPXAX has a Zacks Mutual Fund Rank #1.
Bottom Line
Cohen & Steers mutual funds are best viewed as specialized allocation tools rather than core portfolio holdings. Investors considering them should assess whether their investment objectives, risk tolerance and need for income align with the funds’ focus on real assets and alternative income, while also monitoring the firm’s operating performance and asset flows over time.
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This article originally published on Zacks Investment Research (zacks.com).