COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
SCHEDULE OF INVESTMENTS(Continued)
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
Value
|
|
Nuveen Core Equity Alpha Fund
|
|
|
|
299,912
|
|
|
$
|
4,219,762
|
|
Royce Value Trust, Inc.
|
|
|
|
574,666
|
|
|
|
9,275,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
87,330,307
|
|
|
|
|
|
|
|
U.S. HYBRID
|
|
|
1.9%
|
|
|
|
|
|
|
|
|
|
AllianzGI Equity & Convertible Income Fund
|
|
|
|
239,768
|
|
|
|
6,780,639
|
|
|
|
|
|
|
|
TOTAL
CLOSED-END FUNDS
(Identified cost$269,450,775)
|
|
|
|
|
|
|
|
290,886,876
|
|
|
|
|
|
|
|
EXCHANGE-TRADED FUNDS
|
|
|
15.5%
|
|
|
|
|
|
|
|
|
|
COMMODITIES
|
|
|
2.5%
|
|
|
|
|
|
|
|
|
|
iShares Silver
Trusta
|
|
|
|
178,807
|
|
|
|
4,393,288
|
|
SPDR Gold
Sharesa
|
|
|
|
23,652
|
|
|
|
4,218,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,611,859
|
|
|
|
|
|
|
|
SECTOR EQUITY
|
|
|
0.4%
|
|
|
|
|
|
|
|
|
|
iShares Nasdaq Biotechnology ETF
|
|
|
|
9,346
|
|
|
|
1,415,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GENERAL EQUITY
|
|
|
12.4%
|
|
|
|
|
|
|
|
|
|
iShares Russell 2000 ETF
|
|
|
|
37,469
|
|
|
|
7,346,172
|
|
SPDR S&P 500 ETF Trust
|
|
|
|
29,577
|
|
|
|
11,058,249
|
|
Consumer Discretionary Select Sector SPDR ETF
|
|
|
|
87,597
|
|
|
|
14,083,846
|
|
Vanguard S&P 500 ETF Trust
|
|
|
|
32,089
|
|
|
|
11,028,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43,516,935
|
|
|
|
|
|
|
|
UTILITIES
|
|
|
0.2%
|
|
|
|
|
|
|
|
|
|
Vanguard Utilities ETF
|
|
|
|
5,191
|
|
|
|
712,309
|
|
|
|
|
|
|
|
Total Exchange-Traded Funds
(Identified
cost$41,583,151)
|
|
|
|
|
|
|
|
54,256,928
|
|
|
|
|
|
|
|
SHORT-TERM INVESTMENTS
|
|
|
1.2%
|
|
|
|
|
|
|
|
|
|
MONEY MARKET FUNDS
|
|
|
|
|
|
|
|
|
|
|
|
|
State Street Institutional Treasury Money Market Fund, Premier Class,
0.01%b
|
|
|
|
4,002,516
|
|
|
|
4,002,516
|
|
|
|
|
|
|
|
TOTAL SHORT-TERM
INVESTMENTS
(Identified cost$4,002,516)
|
|
|
|
|
|
|
|
4,002,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
8
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
SCHEDULE OF INVESTMENTS(Continued)
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value
|
|
TOTAL INVESTMENTS IN
SECURITIES
(Identified cost$315,036,442)
|
|
|
100.0%
|
|
|
|
|
|
|
$
|
349,146,320
|
|
LIABILITIES IN EXCESS OF
OTHER ASSETS
|
|
|
0.0
|
|
|
|
|
|
|
|
(17,175
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS (Equivalent to $12.82 per share based on
27,239,394 shares of common stock outstanding)
|
|
|
100.0%
|
|
|
|
|
|
|
$
|
349,129,145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Glossary of Portfolio Abbreviations
|
|
|
ETF
|
|
Exchange-Traded Fund
|
MLP
|
|
Master Limited Partnership
|
SPDR
|
|
Standard & Poors Depositary Receipt
|
Note: Percentages indicated are based on the net assets of the Fund.
a
|
Non-income producing security.
|
b
|
Rate quoted represents the annualized seven-day yield.
|
See accompanying notes to
financial statements.
9
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2020
|
|
|
|
|
ASSETS:
|
|
|
|
|
Investments in securities, at value (Identified
cost$315,036,442)
|
|
$
|
349,146,320
|
|
Cash
|
|
|
479,842
|
|
Receivable for:
|
|
|
|
|
Investment securities sold
|
|
|
1,619,168
|
|
Dividends and interest
|
|
|
935,589
|
|
Other assets
|
|
|
1,449
|
|
|
|
|
|
|
Total Assets
|
|
|
352,182,368
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
|
Payable for:
|
|
|
|
|
Investment securities purchased
|
|
|
2,653,608
|
|
Investment management fees
|
|
|
275,618
|
|
Dividends declared
|
|
|
122,603
|
|
Directors fees
|
|
|
448
|
|
Other liabilities
|
|
|
946
|
|
|
|
|
|
|
Total Liabilities
|
|
|
3,053,223
|
|
|
|
|
|
|
NET ASSETS
|
|
$
|
349,129,145
|
|
|
|
|
|
|
NET ASSETS consist of:
|
|
|
|
|
Paid-in capital
|
|
$
|
335,103,861
|
|
Total distributable earnings/(accumulated loss)
|
|
|
14,025,284
|
|
|
|
|
|
|
|
|
$
|
349,129,145
|
|
|
|
|
|
|
NET ASSET VALUE PER SHARE:
|
|
|
|
|
($349,129,145 ÷ 27,239,394 shares outstanding)
|
|
$
|
12.82
|
|
|
|
|
|
|
MARKET PRICE PER SHARE
|
|
$
|
12.42
|
|
|
|
|
|
|
MARKET PRICE PREMIUM (DISCOUNT) TO NET ASSET VALUE PER SHARE
|
|
|
(3.12
|
)%
|
|
|
|
|
|
See accompanying notes to
financial statements.
10
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
STATEMENT OF OPERATIONS
For the Year Ended December 31, 2020
|
|
|
|
|
Investment Income:
|
|
|
|
|
Dividend income
|
|
$
|
11,441,767
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Investment management fees
|
|
|
3,029,296
|
|
Directors fees and expenses
|
|
|
14,126
|
|
Miscellaneous
|
|
|
3,789
|
|
|
|
|
|
|
Total Expenses
|
|
|
3,047,211
|
|
Reduction of Expenses (See Note 2)
|
|
|
(17,915
|
)
|
|
|
|
|
|
Net Expenses
|
|
|
3,029,296
|
|
|
|
|
|
|
Net Investment Income (Loss)
|
|
|
8,412,471
|
|
|
|
|
|
|
Net Realized and Unrealized Gain (Loss):
|
|
|
|
|
Net realized gain (loss) on:
|
|
|
|
|
Investments in securities
|
|
|
(17,638,624
|
)
|
Foreign currency transactions
|
|
|
(1,006
|
)
|
|
|
|
|
|
Net realized gain (loss)
|
|
|
(17,639,630
|
)
|
|
|
|
|
|
Net change in unrealized appreciation (depreciation) on:
|
|
|
|
|
Investments in securities
|
|
|
13,527,046
|
|
Foreign currency translations
|
|
|
(281
|
)
|
|
|
|
|
|
Net change in unrealized appreciation (depreciation)
|
|
|
13,526,765
|
|
|
|
|
|
|
Net Realized and Unrealized Gain (Loss)
|
|
|
(4,112,865
|
)
|
|
|
|
|
|
Net Increase (Decrease) in Net Assets Resulting from Operations
|
|
$
|
4,299,606
|
|
|
|
|
|
|
See accompanying notes to
financial statements.
11
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended
December 31, 2020
|
|
|
For the Year Ended
December 31, 2019
|
|
Change in Net Assets:
|
|
From Operations:
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
|
$
|
8,412,471
|
|
|
$
|
9,875,661
|
|
Net realized gain (loss)
|
|
|
(17,639,630
|
)
|
|
|
3,225,096
|
|
Net change in unrealized appreciation (depreciation)
|
|
|
13,526,765
|
|
|
|
69,687,082
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations
|
|
|
4,299,606
|
|
|
|
82,787,839
|
|
|
|
|
|
|
|
|
|
|
Distributions to Shareholders
|
|
|
(7,892,452
|
)
|
|
|
(14,400,152
|
)
|
Tax Return of Capital to Shareholders
|
|
|
(20,536,926
|
)
|
|
|
(14,007,832
|
)
|
|
|
|
|
|
|
|
|
|
Total distributions
|
|
|
(28,429,378
|
)
|
|
|
(28,407,984
|
)
|
|
|
|
|
|
|
|
|
|
Capital Stock Transactions:
|
|
|
|
|
|
|
|
|
Increase (decrease) in net assets from Fund share transactions
|
|
|
264,642
|
|
|
|
123,982
|
|
|
|
|
|
|
|
|
|
|
Total increase (decrease) in net assets
|
|
|
(23,865,130
|
)
|
|
|
54,503,837
|
|
Net Assets:
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
|
372,994,275
|
|
|
|
318,490,438
|
|
|
|
|
|
|
|
|
|
|
End of year
|
|
$
|
349,129,145
|
|
|
$
|
372,994,275
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to
financial statements.
12
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
FINANCIAL HIGHLIGHTS
The following table includes selected data for a share outstanding throughout each year and other
performance information derived from the financial statements. It should be read in conjunction with the financial statements and notes thereto.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31,
|
|
Per Share Operating Data:
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
Net asset value, beginning of year
|
|
|
$13.70
|
|
|
|
$11.71
|
|
|
|
$14.02
|
|
|
|
$13.02
|
|
|
|
$12.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
(loss)a,b
|
|
|
0.31
|
|
|
|
0.36
|
|
|
|
0.44
|
|
|
|
0.44
|
|
|
|
0.57
|
|
|
|
|
|
|
|
Net realized and unrealized gain (loss)
|
|
|
(0.15
|
)
|
|
|
2.67
|
|
|
|
(1.71
|
)
|
|
|
1.60
|
|
|
|
1.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total from investment operations
|
|
|
0.16
|
|
|
|
3.03
|
|
|
|
(1.27
|
)
|
|
|
2.04
|
|
|
|
1.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less dividends and distributions to shareholders from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.29
|
)
|
|
|
(0.45
|
)
|
|
|
(0.87
|
)
|
|
|
(1.04
|
)
|
|
|
(0.89
|
)
|
|
|
|
|
|
|
Net realized gain
|
|
|
|
|
|
|
(0.08
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax return of capital
|
|
|
(0.75
|
)
|
|
|
(0.51
|
)
|
|
|
(0.17
|
)
|
|
|
|
|
|
|
(0.15
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total dividends and distributions to shareholders
|
|
|
(1.04
|
)
|
|
|
(1.04
|
)
|
|
|
(1.04
|
)
|
|
|
(1.04
|
)
|
|
|
(1.04
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net asset value
|
|
|
(0.88
|
)
|
|
|
1.99
|
|
|
|
(2.31
|
)
|
|
|
1.00
|
|
|
|
0.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of year
|
|
|
$12.82
|
|
|
|
$13.70
|
|
|
|
$11.71
|
|
|
|
$14.02
|
|
|
|
$13.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value, end of year
|
|
|
$12.42
|
|
|
|
$13.42
|
|
|
|
$11.09
|
|
|
|
$13.31
|
|
|
|
$11.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net asset value
returnc
|
|
|
2.69
|
%
|
|
|
26.89
|
%
|
|
|
9.24
|
%
|
|
|
16.67
|
%
|
|
|
15.31
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total market value
returnc
|
|
|
1.56
|
%
|
|
|
31.25
|
%
|
|
|
9.46
|
%
|
|
|
23.26
|
%
|
|
|
16.67
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data:
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (in millions)
|
|
|
$349.1
|
|
|
|
$373.0
|
|
|
|
$318.5
|
|
|
|
$381.4
|
|
|
|
$354.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to average daily net assets:
|
|
|
|
|
|
|
|
Expenses (before expense
reduction)d
|
|
|
0.96
|
%
|
|
|
0.96
|
%
|
|
|
0.96
|
%
|
|
|
0.96
|
%
|
|
|
0.96
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expensesd
|
|
|
0.95
|
%
|
|
|
0.95
|
%
|
|
|
0.95
|
%
|
|
|
0.95
|
%
|
|
|
0.95
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)
(before expense reduction)b,d
|
|
|
2.63
|
%
|
|
|
2.76
|
%
|
|
|
3.28
|
%
|
|
|
3.19
|
%
|
|
|
4.45
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)
(net of expense reduction)b,d
|
|
|
2.64
|
%
|
|
|
2.77
|
%
|
|
|
3.29
|
%
|
|
|
3.20
|
%
|
|
|
4.46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate
|
|
|
54
|
%
|
|
|
53
|
%
|
|
|
37
|
%
|
|
|
80
|
%
|
|
|
36
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a
|
Calculation based on average shares outstanding.
|
b
|
Net investment income (loss) is affected by the timing of distributions of the underlying funds in
which the Fund invests.
|
c
|
Total net asset value return measures the change in net asset value per share over the period
indicated. Total market value return is computed based upon the Funds market price per share and excludes the effects of brokerage commissions. Dividends and distributions are assumed, for purposes of these calculations, to be reinvested at
prices obtained under the Funds dividend reinvestment plan.
|
d
|
Does not include expenses incurred by the underlying funds in which the Fund invests.
|
See accompanying notes to
financial statements.
13
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
NOTES TO FINANCIAL STATEMENTS
Note 1. Organization and Significant Accounting Policies
Cohen & Steers Closed-End Opportunity Fund, Inc. (the Fund) was incorporated under
the laws of the State of Maryland on September 14, 2006 and is registered under the Investment Company Act of 1940 (the 1940 Act) as a diversified, closed-end management investment company. The
Funds investment objective is to achieve total return, consisting of high current income and potential capital appreciation.
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The Fund is an investment company and, accordingly, follows the investment company
accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 946Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the
United States of America (GAAP). The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Portfolio Valuation: Investments in securities that are listed on the New York Stock Exchange (NYSE) are valued, except as indicated below, at the last sale price reflected at the close of the NYSE 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.
Securities not listed on the NYSE but listed on other domestic or foreign securities exchanges (including NASDAQ) 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 non-U.S. equity holdings may
be fair valued pursuant to procedures established by the Board of Directors.
Readily marketable securities traded in
the OTC market, including listed securities whose primary market is believed by Cohen & Steers Capital Management, Inc. (the investment manager) to be OTC, are valued on the basis of prices provided by a third-party pricing service or
third-party broker-dealers when such prices are believed by the investment manager, pursuant to delegation by the Board of Directors, to reflect the fair value of such securities.
Short-term debt securities with a maturity date of 60 days or less are valued at amortized cost, which approximates fair value.
Investments in open-end mutual funds are valued at net asset value (NAV).
The
policies and procedures approved by the Funds 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.
14
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
NOTES TO FINANCIAL
STATEMENTS(Continued)
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 Funds 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 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.
Foreign equity fair value pricing procedures utilized by the
Fund may cause certain non-U.S. equity holdings to be fair valued on the basis of fair value factors provided by a pricing service to reflect any significant market movements between the time the Fund values
such securities and the earlier closing of foreign markets.
The Funds use of fair value pricing may cause the NAV
of Fund shares to differ from the NAV 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 Funds investments is summarized below.
|
|
|
Level 1quoted prices in active markets for identical investments
|
|
|
|
Level 2other significant observable inputs (including quoted prices for similar investments,
interest rates, credit risk, etc.)
|
|
|
|
Level 3significant unobservable inputs (including the Funds own assumptions in
determining the fair value of investments)
|
The inputs or methodology used for valuing investments may
or may not be an indication of the risk associated with those investments. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy.
15
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
NOTES TO FINANCIAL
STATEMENTS(Continued)
The following is a
summary of the inputs used as of December 31, 2020 in valuing the Funds investments carried at value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
Quoted Prices
in Active
Markets for
Identical
Investments
(Level 1)
|
|
|
Other
Significant
Observable
Inputs
(Level 2)
|
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Closed-End Funds
|
|
$
|
290,886,876
|
|
|
$
|
290,886,876
|
|
|
$
|
|
|
|
$
|
|
|
Exchange-Traded Funds
|
|
|
54,256,928
|
|
|
|
54,256,928
|
|
|
|
|
|
|
|
|
|
Short-Term Investments
|
|
|
4,002,516
|
|
|
|
|
|
|
|
4,002,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments
in Securitiesa
|
|
$
|
349,146,320
|
|
|
$
|
345,143,804
|
|
|
$
|
4,002,516
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a
|
Portfolio holdings are disclosed individually on the Schedule of Investments.
|
Security Transactions and Investment Income: Security transactions are recorded on trade date.
Realized gains and losses on investments sold are recorded on the basis of identified cost. Interest income, which includes the amortization of premiums and accretion of discounts, is recorded on the accrual basis. Dividend income is recorded on the
ex-dividend date, except for certain dividends on foreign securities, which are recorded as soon as the Fund is informed after the ex-dividend date. Distributions from closed-end funds (CEFs) and exchange-traded funds (ETFs) are recorded as ordinary income, net realized capital gain or return of capital based on information reported by the CEFs and ETFs and managements
estimates of such amounts based on historical information. These estimates are adjusted when the actual source of distributions is disclosed by the CEFs and ETFs and may differ from the estimated amounts.
Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Investment securities and
other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in
foreign currencies are translated into U.S. dollars based upon prevailing exchange rates on the respective dates of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign
exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.
Net realized foreign currency transaction gains or losses arise from sales of foreign currencies, (excluding gains and losses on
forward foreign currency exchange contracts, which are presented separately, if any) currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest,
and foreign withholding taxes recorded on the Funds books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency translation gains and losses arise from changes in the values of assets and
liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates. Pursuant to U.S. federal income tax regulations, certain foreign
16
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
NOTES TO FINANCIAL
STATEMENTS(Continued)
currency gains/losses included in
realized and unrealized gains/losses are included in or are a reduction of ordinary income for federal income tax purposes.
Dividends and Distributions to Shareholders: The Fund makes regular distributions pursuant to the Policy. Dividends from net investment income and capital gain distributions are determined in accordance with U.S. federal
income tax regulations, which may differ from GAAP. Dividends from net investment income, if any, are typically declared quarterly and paid monthly. Net realized capital gains, unless offset by any available capital loss carryforward, are typically
distributed to shareholders at least annually. Dividends and distributions to shareholders are recorded on the ex-dividend date and are automatically reinvested in full and fractional shares of the Fund in
accordance with the Funds Reinvestment Plan, unless the shareholder has elected to have them paid in cash.
Dividends from net investment income are subject to recharacterization for tax purposes. Based upon the results of operations for
the year ended December 31, 2020, a portion of the dividends has been reclassified to distributions from tax return of capital.
Distributions Subsequent to December 31, 2020: The following distributions have been declared by the Funds Board of Directors and are payable subsequent to the period end of this report.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ex-Date
|
|
|
Record Date
|
|
|
Payable Date
|
|
|
Amount
|
|
|
1/12/21
|
|
|
|
1/13/21
|
|
|
|
1/29/21
|
|
|
$
|
0.087
|
|
|
2/9/21
|
|
|
|
2/10/21
|
|
|
|
2/26/21
|
|
|
$
|
0.087
|
|
|
3/16/21
|
|
|
|
3/17/21
|
|
|
|
3/31/21
|
|
|
$
|
0.087
|
|
Income Taxes: It is the policy of the Fund to continue to qualify as a regulated investment
company (RIC), if such qualification is in the best interest of the shareholders, by complying with the requirements of Subchapter M of the Internal Revenue Code applicable to RICs, and by distributing substantially all of its taxable earnings to
its shareholders. Also, in order to avoid the payment of any federal excise taxes, the Fund will distribute substantially all of its net investment income and net realized gains on a calendar year basis. Accordingly, no provision for federal income
or excise tax is necessary. Management has analyzed the Funds tax positions taken on federal and applicable state income tax returns as well as its tax positions in non-U.S. jurisdictions in which it
trades for all open tax years and has concluded that as of December 31, 2020, no additional provisions for income tax are required in the Funds financial statements. The Funds tax positions for the tax years for which the applicable
statutes of limitations have not expired are subject to examination by the Internal Revenue Service, state departments of revenue and by foreign tax authorities.
Note 2. Investment Management Fees and Other Transactions with Affiliates
Investment Management Fees: Cohen & Steers Capital Management, Inc. serves as the Funds investment manager
pursuant to an investment management agreement (the investment management agreement). Under the terms of the investment management agreement, the investment manager provides the Fund with day-to-day investment decisions and generally manages the Funds investments in accordance with the stated policies of the Fund, subject to the supervision of the Board of Directors.
For the services provided to the Fund, the investment manager receives a fee, accrued daily and paid monthly, at the annual rate of
0.95% of the average daily net assets of the Fund.
17
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
NOTES TO FINANCIAL
STATEMENTS(Continued)
The investment
manager is also responsible, under the investment management agreement, for the performance of certain administrative functions for the Fund. Additionally, the investment manager pays certain expenses of the Fund, including, but not limited to,
administrative and custody fees, transfer agent fees, professional fees, and reports to shareholders.
The investment
manager has contractually agreed to reimburse the Fund so that its total annual operating expenses exclusive of brokerage fees and commissions, taxes, and, upon approval of the Board of Directors, extraordinary expenses do not exceed 0.95% of the
Funds average daily net assets of the Fund. This commitment is currently expected to remain in place for the life of the Fund, can only be amended or terminated by agreement of the Funds Board of Directors and the investment manager and
will terminate automatically in the event of termination of the investment management agreement between the investment manager and the Fund. For the year ended December 31, 2020, fees waived and/or expenses reimbursed totaled $17,915.
Directors and Officers Fees: Certain directors and officers of the Fund are also directors,
officers, and/or employees of the investment manager. The Fund does not pay compensation to directors and officers affiliated with the investment manager except for the Chief Compliance Officer, who received compensation from the investment manager,
which was reimbursed by the Fund, in the amount of $2,094 for the year ended December 31, 2020.
Note 3. Purchases and Sales of
Securities
Purchases and sales of securities, excluding short-term investments, for the year ended December 31,
2020, totaled $169,877,898 and $180,846,181 respectively.
Note 4. Income Tax Information
The tax character of dividends and distributions paid was as follows:
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended
December 31,
|
|
|
|
2020
|
|
|
2019
|
|
Ordinary income
|
|
$
|
6,577,883
|
|
|
$
|
12,305,206
|
|
Tax-exempt income
|
|
|
1,314,569
|
|
|
|
1,372,555
|
|
Long-term capital gain
|
|
|
|
|
|
|
722,391
|
|
Tax return of capital
|
|
|
20,536,926
|
|
|
|
14,007,832
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
28,429,378
|
|
|
$
|
28,407,984
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2020, the tax-basis components of
accumulated earnings, the federal tax cost and net unrealized appreciation (depreciation) in value of investments held were as follows:
|
|
|
|
|
Cost of investments in securities for federal income tax purposes
|
|
$
|
316,882,582
|
|
|
|
|
|
|
Gross unrealized appreciation on investments
|
|
$
|
41,852,463
|
|
Gross unrealized depreciation on investments
|
|
|
(9,588,725
|
)
|
|
|
|
|
|
Net unrealized appreciation (depreciation) on investments
|
|
$
|
32,263,738
|
|
|
|
|
|
|
18
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
NOTES TO FINANCIAL
STATEMENTS(Continued)
As of December 31,
2020, the Fund has a net capital loss carryforward of $18,346,963 which may be used to offset future capital gains. These losses are a short-term capital loss carryforward of $9,881,875 and a long-term capital loss carryforward of $8,465,088, which
under current federal income tax rules, may offset capital gains recognized in any future period.
As of
December 31, 2020, the Fund had temporary book/tax differences primarily attributable to wash sales on portfolio securities and permanent book/tax differences primarily attributable to underlying fund adjustments. To reflect reclassifications
arising from the permanent differences, paid-in capital was credited $12,534 and total distributable earnings/(accumulated loss) was charged $12,534. Net assets were not affected by this reclassification.
Note 5. Capital Stock
The Fund is authorized to issue 100 million shares of common stock at a par value of $0.001 per share.
During the year ended December 31, 2020, the Fund issued 20,875 shares of common stock at $264,642 for the reinvestment of dividends. During the year ended December 31, 2019, the Fund issued 9,371 shares of common stock at
$123,982 for the reinvestment of dividends.
On December 10, 2019, the Board of Directors approved the continuation
of the delegation of its authority to management to effect repurchases, pursuant to managements discretion and subject to market conditions and investment considerations, of up to 10% of the Funds common shares outstanding (Share
Repurchase Program) as of January 1, 2020, through December 31, 2020.
During the years ended
December 31, 2020 and December 31, 2019, the Fund did not effect any repurchases.
On December 8, 2020, the
Board of Directors approved the continuation of the Share Repurchase Program of up to 10% of the Funds common shares outstanding as of January 1, 2021 through December 31, 2021.
Note 6. Other
In
the normal course of business, the Fund enters into contracts that provide general indemnifications. The Funds maximum exposure under these arrangements is dependent on claims that may be made against the Fund in the future and, therefore,
cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote.
Note 7. Subsequent
Events
Management has evaluated events and transactions occurring after December 31, 2020 through the date that
the financial statements were issued, and has determined that no additional disclosure in the financial statements is required.
19
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
To the Board of Directors and Shareholders of
Cohen & Steers Closed-End Opportunity Fund, Inc.
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Cohen & Steers Closed-End Opportunity Fund, Inc. (the Fund)
as of December 31, 2020, the related statement of operations for the year ended December 31, 2020, the statement of changes in net assets for each of the two years in the period ended December 31, 2020, including the related notes,
and the financial highlights for each of the five years in the period ended December 31, 2020 (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects,
the financial position of the Fund as of December 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2020 and the financial highlights
for each of the five years in the period ended December 31, 2020 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These
financial statements are the responsibility of the Funds management. Our responsibility is to express an opinion on the Funds financial statements based on our audits. We are a public accounting firm registered with the Public Company
Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and
the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,
and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2020 by correspondence with the
custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
New York, New York
February 26, 2021
We have
served as the auditor of one or more investment companies in the Cohen & Steers family of mutual funds since 1991.
20
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
(The following pages are unaudited)
AVERAGE ANNUAL TOTAL RETURNS
(Periods ended December 31, 2020)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on Net Asset Value
|
|
|
|
|
|
Based on Market Value
|
|
One Year
|
|
|
Five Years
|
|
|
Ten Years
|
|
|
Since Inception
(11/24/06)
|
|
|
|
|
|
One Year
|
|
|
Five Years
|
|
|
Ten Years
|
|
|
Since Inception
(11/24/06)
|
|
|
2.69
|
%
|
|
|
9.73
|
%
|
|
|
7.63
|
%
|
|
|
5.86
|
%
|
|
|
|
|
|
|
1.56
|
%
|
|
|
11.65
|
%
|
|
|
8.18
|
%
|
|
|
5.38
|
%
|
The performance data quoted represent past performance. Past performance is no guarantee of
future results. The investment return will vary and the principal value of an investment will fluctuate and shares, if sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data
quoted. Current total returns of the Fund can be obtained by visiting our website at cohenandsteers.com. Fund performance figures reflect fee waivers and/or expense reimbursements, without which the performance would have been lower. The Funds
returns assume the reinvestment of all dividends and distributions at prices obtained under the Funds dividend reinvestment plan.
TAX INFORMATION2020
For the calendar year ended December 31, 2020, for individual taxpayers, the
Fund designates $4,259,584 as qualified dividend income eligible for reduced tax rates, tax-exempt income distributions of $1,314,569 and $90,540 as qualified business income eligible for the 20% deduction. In addition, for corporate taxpayers,
35.44% of the ordinary dividends paid qualified for the dividends received deduction (DRD).
REINVESTMENT PLAN
The Fund has a dividend reinvestment plan commonly referred to as an opt-out plan (the Reinvestment Plan).
Each common shareholder who participates in the Reinvestment Plan will have all distributions of dividends and capital gains (Dividends) automatically reinvested in additional common shares by Computershare as agent (the Plan Agent). Shareholders
who elect not to participate in the Reinvestment Plan will receive all Dividends in cash paid by check mailed directly to the shareholder of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent,
as dividend disbursing agent. Shareholders whose common shares are held in the name of a broker or nominee should contact the broker or nominee to determine whether and how they may participate in the Reinvestment Plan.
The Plan Agent serves as agent for the shareholders in administering the Reinvestment Plan. After the Fund declares a Dividend, the
Plan Agent will, as agent for the shareholders, either: (i) receive the cash payment and use it to buy common shares in the open market, on the NYSE or elsewhere, for the participants accounts or (ii) distribute newly issued common shares of
the Fund on behalf of the participants.
The Plan Agent will receive cash from the Fund with which to buy common shares
in the open market if, on the Dividend payment date, the NAV per share exceeds the market price per share plus estimated brokerage commissions on that date. The Plan Agent will receive the Dividend in newly issued common shares of the Fund if, on
the Dividend payment date, the market price per share plus estimated brokerage commissions equals or exceeds the NAV per share of the Fund on that date. The number of shares to be issued will be computed at a per share rate equal to the greater of
(i) the NAV or (ii) 95% of the closing market price per share on the payment date.
If the market price per share is
less than the NAV on a Dividend payment date, the Plan Agent will have until the last business day before the next ex-dividend date for the common stock, but in no event more than 30 days after the Dividend payment date (as the case may be, the
Purchase Period), to invest the Dividend amount in shares acquired in open market purchases. If at the close of business on
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any day during the Purchase Period on which NAV is
calculated the NAV equals or is less than the market price per share plus estimated brokerage commissions, the Plan Agent will cease making open market purchases and the uninvested portion of such Dividends shall be filled through the issuance of
new shares of common stock from the Fund at the price set forth in the immediately preceding paragraph.
Participants in
the Reinvestment Plan may withdraw from the Reinvestment Plan upon notice to the Plan Agent. Such withdrawal will be effective immediately if received not less than ten days prior to a Dividend record date; otherwise, it will be effective for all
subsequent Dividends. If any participant elects to have the Plan Agent sell all or part of his or her shares and remit the proceeds, the Plan Agent is authorized to deduct a $15.00 fee plus $0.10 per share brokerage commissions.
The Plan Agents fees for the handling of reinvestment of Dividends will be paid by the Fund. However, each participant will
pay a pro rata share of brokerage commissions incurred with respect to the Plan Agents open market purchases in connection with the reinvestment of Dividends. The automatic reinvestments of Dividends will not relieve participants of any income
tax that may be payable or required to be withheld on such Dividends.
The Fund reserves the right to amend or terminate
the Reinvestment Plan. All correspondence concerning the Reinvestment Plan should be directed to the Plan Agent at 800-432-8224.
OTHER INFORMATION
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 866-227-0757, (ii) on our website at cohenandsteers.com or (iii) on the SECs website at http://www.sec.gov. In addition, the Funds proxy voting record for the most recent 12-month period ended June 30 is available by August 31 of each year (i) without charge, upon request, by calling
866-227-0757 or (ii) on the SECs website at http://www.sec.gov.
Disclosures of the Funds complete holdings are required to be made monthly on Form N-PORT, with every third month made
available to the public by the SEC 60 days after the end of the Funds fiscal quarter. Previously, the Fund filed its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which
has now been rescinded. Both the Funds Form N-Q and Form N-PORT are available (i) without charge, upon request, by calling 866-227-0757 or (ii) on the SECs
website at http://www.sec.gov.
Please note that distributions paid by the Fund to shareholders are subject to
recharacterization for tax purposes and are taxable up to the amount of the Funds investment company taxable income and net realized gains. Distributions in excess of the Funds net investment company taxable income and realized gains are
a return of capital distributed from the Funds assets. To the extent this occurs, the Funds shareholders of record will be notified of the estimated amount of capital returned to shareholders for each such distribution and this
information will also be available at cohenandsteers.com. The final tax treatment of all distributions is reported to shareholders on their 1099-DIV forms, which are mailed after the close of each calendar year. Distributions of capital decrease the
Funds total assets and, therefore, could have the effect of increasing the Funds expense ratio. In addition, in order to make these Paige distributions, the Fund may have to sell portfolio securities at a less than opportune time.
Notice is hereby given in accordance with Rule 23c-1 under the
1940 Act that the Fund may purchase, from time to time, shares of its common stock in the open market.
Change to the size of
the Board of Directors
On January 26, 2021, the Board of Directors voted to set the number of directors on the
Funds Board of Directors to nine.
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CURRENT INVESTMENT OBJECTIVES, PRINCIPAL
INVESTMENT POLICIES AND PRINCIPAL RISKS OF THE FUND
The information contained herein is provided for informational
purposes only and does not constitute a solicitation of an offer to buy or sell Fund shares.
Investment Objectives
Cohen & Steers Closed-End Opportunity Fund, Inc. (the Fund) is a diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act). The Funds investment objective is to achieve total return, consisting of high current
income and potential capital appreciation.
Investment Strategies
The Fund seeks to achieve its objective by investing in the common stock of closed-end
management investment companies (Portfolio Funds) selected by the Funds investment manager that invest significantly in equity or income-producing securities. Portfolio Funds generally focus on equity or income-producing securities, sectors or
strategies, such as dividend strategies, covered call option strategies, total return strategies, balanced strategies, general equities (including both dividend and non-dividend paying equities), limited
duration strategies, convertible securities, preferred securities, high yield securities and real estate, energy, utility and other equity or income-oriented strategies. Shares of Portfolio Funds in which the Fund invests will be traded on a
national securities exchange.
Dividend strategies typically focus on investments in dividend-paying equity securities
or equity-related securities, such as common stock, preferred securities, convertible securities and/or warrants. A covered call option strategy is designed to produce income from premiums received from writing (selling) call options on single
securities and/or indices and to offset a portion of a market decline in the underlying securities. Total return strategies typically pursue both income and capital appreciation, and may invest in a wide variety of equity and fixed income securities
and other instruments that vary from fund to fund. A balanced strategy typically invests at least 25% of its assets in fixed income senior securities and at least 25% of its assets in equities. Limited duration strategies typically focus on fixed
income securities of intermediate duration (a measure of the price volatility of a debt instrument as a result of changes in market interest rates, based on the weighted average timing of the instruments expected principal and interest
payments), and may include high yield securities, senior loans and mortgage-related securities. Securities and other investments in which Portfolio Funds pursuing these strategies are expected to focus their investments, along with equity,
convertible, preferred and high yield securities and the real estate, energy and utilities sectors, are described with their accompanying risks, under Principal Risks of the FundPortfolio Fund Investment Risk.
Under normal circumstances, at least 80% of the Funds net assets will be invested in common stock issued by Portfolio
Funds. The Fund is not required to invest in Portfolio Funds focusing on U.S. or foreign securities, or equity or fixed income securities, in any specific proportion, and allocation of the Funds portfolio between Portfolio Funds focusing
on U.S. and foreign securities, and between equity and fixed income securities, will vary over time, perhaps significantly. The Fund also has the ability to invest directly in income-producing securities and instruments relating to closed-end funds.
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In selecting Portfolio Funds, the investment
manager seeks to identify closed-end funds that meet one or more of the following characteristics:
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strong fundamentals, including ability to meet current and projected future dividend payments out of
current income or a combination of current income and realized and unrealized gains, and leverage/risk management, as the investment manager believes that a conservative approach to leverage has the potential to help mitigate the effects of changes
in interest rates;
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relatively high current income;
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share prices at a discount to net asset value;
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undervalued funds where recent total return on market price trails recent total return on net asset
value;
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well-regarded asset managers with strong track records managing the asset class(es) in which a
Portfolio Fund invests;
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diversification of sectors and asset classes among the Portfolio Funds;
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market capitalization generally greater than $200 million; and
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average daily trading volumes generally greater than $750,000 per day.
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There is no requirement that any Portfolio Fund in the Funds portfolio satisfy all the criteria set forth above, and the
investment manager will use its discretion in selecting a portfolio of Portfolio Funds that the investment manager believes will help the Fund achieve its investment objective.
In addition to the criteria set forth above, the investment manager also may invest opportunistically in one or more Portfolio
Funds when the investment manager believes a Portfolio Funds shares are not appropriately priced relative to other comparable funds or the Portfolio Funds share price does not properly reflect the impact of a corporate event or
conditions in the overall securities markets that the investment manager believes will have a positive influence on the Portfolio Funds share price.
The Fund will be limited by provisions of the 1940 Act, that limit the amount the Fund can invest in any one Portfolio Fund to 3%
of the Portfolio Funds total outstanding stock. As a result, the Fund may hold a smaller position in a Portfolio Fund than if it were not subject to this restriction. To comply with provisions of the 1940 Act, on any matter upon which
Portfolio Fund stockholders are solicited to vote the investment manager will vote Portfolio Fund shares in the same general proportion as shares held by other stockholders of the Portfolio Fund. The Fund will not invest in any closed-end funds managed by the investment manager.
The Fund may invest in securities
of other closed-end or open-end funds, including exchange traded funds (ETFs), in accordance with Section 12(d)(1) of the 1940 Act and the rules thereunder, or any
exemption granted under the 1940 Act.
The Fund may, but is not required to, use, without limit, various derivatives
transactions to seek to generate return, facilitate portfolio management and mitigate risks. Although the Funds investment adviser may seek to use these kinds of transactions to further the Funds investment objectives, no assurance can
be given that they will achieve this result. The Fund may enter into (buy or sell) exchange-listed and over-the-counter put and call options on securities (including
securities of investment companies and baskets of securities), indices, and other financial instruments; purchase and sell financial futures contracts and options thereon; enter into various interest rate transactions,
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such as swaps, caps, floors or collars or credit
transactions; equity index, total return and credit default swaps; forward contracts; and structured investments. In addition, the Fund may enter into various currency transactions, such as forward currency contracts, currency futures contracts,
currency swaps or options on currency or currency futures. The Fund also may purchase and sell derivative instruments that combine features of these instruments. The Fund may invest in other types of derivatives, structured and similar instruments
which are not currently available but which may be developed in the future.
The Fund may buy and sell shares of
Portfolio Funds to take advantage of potential short-term trading opportunities, but short-term trading will not be used as the primary means of achieving the Funds investment objective.
Temporary Defensive Positions. When the investment manager believes that market or general economic conditions justify a
temporary defensive position, the Fund may deviate from its investment objectives and invest all or any portion of its assets in investment grade debt securities. In such a case, the Fund may not pursue or achieve its investment objective.
Principal Risks of the Fund
The Fund is a diversified, closed-end management investment company designed primarily as a
long-term investment and not as a trading vehicle. The Fund is not intended to be a complete investment program and, due to the uncertainty inherent in all investments, there can be no assurance that the Fund will achieve its investment objective.
Risks of investing in the Fund include risks associated with (1) investments in
closed-end funds generally, including both your investment in Common Shares and the Funds investment in Portfolio Fund shares; (2) the risks of the Portfolio Funds investments; and
(3) any direct investments in income-producing securities and derivative, structured and other instruments related to closed-end funds including derivatives, which are the same risks as described below
for Portfolio Fund investments in such securities and instruments. Since the Fund pursues its investment objective by investing in Portfolio Funds, it is subject to particular risks associated with investing in other
closed-end funds that are separate from risks associated with the investments held by the Portfolio Funds.
Both the Fund, and the Portfolio Funds, have management fees. In addition, the Portfolio Funds typically incur operating expenses
that are borne by their investors, including the Fund. As a result, Fund investors will bear not only the Funds management fees and any operating expenses not paid by the investment manager, but also the fees and expenses of the Portfolio
Funds attributable to the Funds investments. Investors would bear less expenses if they invested directly in the Portfolio Funds.
Risks of Investing in Closed-End Funds
Market Price Discount from Net Asset Value Risk. Shares of closed-end investment
companies frequently trade at a discount from their net asset value (NAV). This characteristic is a risk separate and distinct from the risk that NAV could decrease as a result of investment activities. Whether investors will realize gains or losses
upon the sale of the shares will depend not upon the Funds NAV but entirely upon whether the market price of the shares at the time of sale is above or below the investors purchase price for the shares. Because the market price of the
shares is determined by factors such as relative supply of and demand for shares in the market, general market and economic conditions, and other factors beyond the control of the Fund, the shares may trade at, above or below NAV.
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Market Risk. Your investment in the
Fund represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. The Fund and the Portfolio Funds may utilize leverage, which
magnifies this risk. Your shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. See Leverage Risk below.
Investment Risk. An investment in the Fund is subject to investment risk, including the possible loss of the entire
principal amount that you invest.
Risks of Investing in Other Investment Companies. Since the Fund concentrates
its assets in closed-end management investment companies, risks of investing in the Fund include the risks associated with the purchased closed-end investment
companies portfolio securities, and a shareholder in the Fund will bear not only his or her proportionate share of the Funds expenses, but also indirectly the expenses of the Portfolio Funds. Shareholders will therefore be subject to
duplicative expenses to the extent the Fund invests in other investment companies. Risks associated with investments in closed-end funds generally include market risk, leverage risk, risk of market price
discount from NAV, risk of anti-takeover provisions and non-diversification.
To
the extent the Fund invests a portion of its assets in other investment companies, including ETFs and other types of pooled investment funds, those assets will be subject to the risks of the purchased investment funds portfolio securities, and
a shareholder in the Fund will bear not only his or her proportionate share of the Funds expenses, but also indirectly the expenses of the purchased investment funds. In addition, restrictions under the 1940 Act may limit the Funds
ability to invest in other investment companies to the extent desired.
The SEC has adopted Rule 12d1-4 permitting fund of fund arrangements subject to various conditions, and rescinding the present rule and certain exemptive relief previously granted. Once in effect, Rule
12d1-4 may adversely affect the Funds ability to invest in other investment companies and could also significantly affect the Funds ability to redeem its investments in other investment companies,
making such investments less attractive. The effects of rule and other regulatory changes are not known as of the date of this report, but they could impact the Funds ability to achieve its desired investment strategies or cause the Fund to
incur losses, realize taxable gains distributable to shareholders, incur greater or unexpected expenses or experience other adverse consequences.
Manager Risk. The success of the Funds strategy is subject to the ability of the investment manager to achieve
the Funds investment objective. Similarly, the Funds investments in Portfolio Funds is subject to the ability of the Portfolio Funds managers to achieve the Portfolio Funds investment objectives.
Dividend Risk. Common Shares, as well as shares issued by the Portfolio Funds, do not assure dividend payments.
Dividends are paid only when declared by the Board of Directors of the Fund or the boards of directors of the Portfolio Funds, as the case may be, and the level of dividends may vary over time. If a Portfolio Fund reduces or eliminates the level of
its regular dividends, this may reduce the level of dividends paid by the Fund, and may cause the market prices of the Portfolio Funds shares and the Common Shares to fall.
Inflation Risk. Inflation risk is the risk that the value of assets or income from investments will be worth less in
the future as inflation decreases the value of money. As inflation increases, the real value of the Common Shares and shares of Portfolio Funds and distributions can decline.
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Risk of Anti-Takeover
Provisions. Certain provisions of the Funds Charter and By-Laws could limit the ability of other entities or persons to acquire control of the Fund or change the Funds structure. The
provisions may have the effect of depriving common stockholders of an opportunity to sell their shares at a premium over prevailing market prices or have the effect of inhibiting conversion of the Fund to
an open-end fund. Portfolio Funds also may have similar provisions in their organizational documents, which would have a similar effect on the Funds investments.
Dilution Risk. Strategies may be employed by a Portfolio Fund that, under certain circumstances, have the effect of
reducing its share price and the Funds proportionate interest. These include rights offerings in which the Fund does not subscribe. However, the Fund would not subscribe only when the investment manager believes participation is not consistent
with pursuing the Funds investment objective.
Portfolio Turnover Risk. The Fund may engage in
portfolio trading when considered appropriate. There are no limits on the rate of portfolio turnover. Portfolio Funds also may not be limited in their portfolio trading activity. Higher turnover rates result in correspondingly greater brokerage
commissions and other transactional expenses which are borne by the Fund, directly or through its investment in Portfolio Funds. Higher turnover rates also may be more likely to generate capital gains that must be distributed to Common Shareholders,
either as a result of the Funds receipt of capital gains from Portfolio Fund transactions or from the Funds trading in Portfolio Funds or other investments.
Derivatives Transactions Risk. The Fund or certain Portfolio Funds may use of derivatives, which presents risks
different from, and possibly greater than, the risks associated with investing directly in traditional securities. In certain types of derivatives transactions the Fund or a Portfolio Fund could lose the entire amount of its investment; in other
types of derivatives transactions the potential loss is theoretically unlimited. Although both OTC and exchange-traded derivatives markets may experience lack of liquidity, OTC non-standardized derivatives
transactions are generally less liquid than exchange-traded instruments. In addition, the liquidity of a secondary market in an exchange-traded derivative contract may be adversely affected by daily price fluctuation limits established
by the exchanges which once reached, would prevent the liquidation of open positions. If it is not possible to close an open derivative position entered into by the Fund or a Portfolio Fund, the Fund or the Portfolio Fund may be required to make
cash payments of variation (or mark-to-market) margin and, if the Fund has insufficient cash, it may have to sell portfolio securities to meet variation margin
requirements at a time when it may be disadvantageous to do so. The inability to close derivatives transactions positions also could have an adverse impact on the Funds or a Portfolio Funds ability to effectively hedge its portfolio.
Derivatives transactions entered into to seek to manage the risks of the Funds or a Portfolio Funds portfolio of securities may have the effect of limiting gains from otherwise favorable market movements. The use of derivatives
transactions may result in losses greater than if they had not been used. The Fund or a Portfolio Fund may enter into swap, cap or other transactions to attempt to protect itself from increasing interest or dividend expenses resulting from
increasing short-term interest rates on any leverage it incurs or increasing interest rates on securities held in its portfolio. A decline in interest rates may result in a decline in the value of the transaction, which may result in a decline in
the NAV of the Fund or a Portfolio Fund. In the event the Fund or a Portfolio Fund enters into forward currency contracts for hedging purposes, the Fund or the Portfolio Fund will be subject to currency exchange rates risk. Currency exchange rates
may fluctuate significantly over short periods of time and also can be affected unpredictably by intervention of U.S. or foreign governments or central banks, or the failure to intervene,
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or by currency controls or political developments in the
United States or abroad. Furthermore, the ability to successfully use derivative instruments depends on the ability of the relevant investment manager to predict pertinent market movements, which cannot be assured. Structured notes and other related
instruments carry risks similar to those of more traditional derivatives such as futures, forward and option contracts. However, structured instruments may entail a greater degree of market risk and volatility than other types of debt obligations.
The Fund or a Portfolio Fund will be subject to credit risk with respect to the counterparties to certain derivatives transactions entered into by the Fund or the Portfolio Fund and may experience losses in the event a counterparty fails to perform
its obligations under a derivative contract.
The Investment Manager is registered with the Commodity Futures Trading
Commission as a commodity pool operator (CPO). However, with respect to the Fund, the Investment Manager has claimed an exclusion from the definition of the CPO under the Commodity Exchange Act, as amended (the CEA).
Accordingly, the Investment Manager, with respect to the Fund, is not subject to registration or regulation as a CPO under the CEA.
Active Management Risk. As an actively managed portfolio, the value of the Funds investments could decline because the financial condition of an issuer may change (due to such factors as management performance, reduced
demand or overall market changes), financial markets may fluctuate or overall prices may decline, or the investment managers investment techniques could fail to achieve the Funds investment objectives or negatively affect the Funds
investment performance.
Cyber Security Risk. With the increased use of technologies such as the Internet and the
dependence on computer systems to perform necessary business functions, the Fund and its service providers (including the investment manager) may be susceptible to operational and information security risks resulting from cyber-attacks and/or other
technological malfunctions. In general, cyber-attacks are deliberate, but unintentional events may have similar effects. Cyber-attacks include, among others, stealing or corrupting data maintained online or digitally, preventing legitimate users
from accessing information or services on a website, releasing confidential information without authorization, gaining unauthorized access to digital systems for purposes of misappropriating assets and causing operational disruption. Cyber-attacks
may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service. Successful cyber-attacks against, or security
breakdowns of, the Fund, the investment manager, or a custodian, transfer agent, or other affiliated or third-party service provider may adversely affect the Fund or its shareholders. For instance, cyber-attacks may interfere with the processing of
shareholder transactions, affect the Funds ability to calculate its NAV, cause the release of private shareholder information or confidential Fund information, impede trading, cause reputational damage, and subject the Fund to regulatory
fines, penalties or financial losses, reimbursement or other compensation costs, and additional compliance costs. Furthermore, as a result of breaches in cyber security or other operational and technology disruptions or failures, an exchange or
market may close or issue trading halts on specific securities or an entire market, which may result in the Fund being, among other things, unable to buy or sell certain securities or financial instruments or unable to accurately price its
investments. While the Fund has established business continuity plans and systems designed to prevent cyber-attacks, there are inherent limitations in such plans and systems including the possibility that certain risks have not been identified.
Similar types of cyber security risks also are present for issuers of securities in which the Fund invests, which could result in material adverse consequences for such issuers, and may cause the Funds investment in such securities to lose
value.
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Each of the Fund and the investment manager
may have limited ability to prevent or mitigate cyber-attacks or security or technology breakdowns affecting the Funds third-party service providers. While the Fund has established business continuity plans and systems designed to prevent or
reduce the impact of cyber-attacks, such plans and systems are subject to inherent limitations.
Geopolitical
Risk. Occurrence of global events similar to those in recent years, such as war, terrorist attacks, natural or environmental disasters, country instability, infectious disease epidemics, such as that caused by the COVID-19 virus, market instability, debt crises and downgrades, embargoes, tariffs, sanctions and other trade barriers and other governmental trade or market control programs, the potential exit of a country from
its respective union and related geopolitical events, may result in market volatility and may have long-lasting impacts on both the U.S. and global financial markets. Additionally, those events, as well as other changes in foreign and domestic
political and economic conditions, could adversely affect individual issuers or related groups of issuers, securities markets, interest rates, secondary trading, credit ratings, inflation, investor sentiment and other factors affecting the value of
the Funds investments.
An outbreak of respiratory disease caused by a novel coronavirus designated as COVID-19 has resulted in, among other things, extreme volatility in the financial markets and severe losses, reduced liquidity of many instruments, significant travel restrictions, significant disruptions to
business operations, supply chains and customer activity, lower consumer demand for goods and services, service and event cancellations, reductions and other changes, strained healthcare systems, as well as general concern and uncertainty. The
impact of the COVID-19 outbreak has negatively affected the global economy, the economies of individual countries, and the financial performance of individual issuers, sectors, industries, asset classes, and
markets in significant and unforeseen ways. Pandemics may also exacerbate other pre-existing political, social, economic, market and financial risks. The effects of the outbreak in developing or emerging
market countries may be greater due to less established health care systems and supply chains. The COVID-19 pandemic and its effects may result in a sustained economic downturn or a global recession, ongoing
market volatility and/or decreased liquidity in the financial markets, exchange trading suspensions and closures, higher default rates, domestic and foreign political and social instability and damage to diplomatic and international trade relations.
While some vaccines have been developed and approved for use by various governments, the political, social, economic, market and financial risks of COVID-19 could persist for years to come. The foregoing could
impair the Funds ability to maintain operational standards, disrupt the operations of the Funds service providers, adversely affect the value and liquidity of the Funds investments, and negatively impact the Funds performance
and your investment in the Fund.
On January 31, 2020, the United Kingdom (the UK) withdrew from the European Union
(EU) (referred to as Brexit), commencing a transition period that ended on December 31, 2020. On January 1, 2021, the EU-UK Trade and Cooperation Agreement, a bilateral trade and cooperation deal
governing the future relationship between the UK and the EU, provisionally went into effect. The UK Parliament has already ratified the agreement and the EU Parliament has until February 28, 2021 to do the same. Brexit has resulted in
volatility in European and global markets and could have negative long-term impacts on financial markets in the UK and throughout Europe. There is considerable uncertainty about the potential consequences of Brexit, the EU-UK Trade and Cooperation Agreement, how future negotiations of trade relations will proceed, and how the financial markets will react to all of the preceding. As this process unfolds, markets may be further
disrupted. Given the size and importance of
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the UKs economy, uncertainty about its legal,
political and economic relationship with the remaining member states of the EU may continue to be a source of instability.
Growing tensions, including trade disputes, between the United States and other nations, or among foreign powers, and possible diplomatic, trade or other sanctions could adversely impact the global economy, financial markets and the
Fund. The strengthening or weakening of the U.S. dollar relative to other currencies may, among other things, adversely affect the Funds investments denominated in non-U.S. dollar currencies. It is
difficult to predict when similar events affecting the U.S. or global financial markets may occur, the effects that such events may have, and the duration of those effects.
Regulatory Risk. The U.S. government has proposed and adopted multiple regulations that could have a long-lasting
impact on the Fund and on the fund industry in general. The SECs final rules, related requirements and amendments to modernize reporting and disclosure, along with other potential upcoming regulations, could, among other things, restrict the
Funds ability to engage in transactions, and/or increase overall expenses of the Fund. In addition, the SEC, Congress, various exchanges and regulatory and self-regulatory authorities, both domestic and foreign, have undertaken reviews of the
use of derivatives by registered investment companies, which could affect the nature and extent of instruments used by the Fund. While the full extent of all of these regulations is still unclear, these regulations and actions may adversely affect
both the Fund and the instruments in which the Fund invests and its ability to execute its investment strategy. Similarly, regulatory developments in other countries may have an unpredictable and adverse impact on the Fund.
The SEC has recently adopted a rule relating to a registered investment companys use of derivatives and similar transactions
that could potentially require the Fund to observe more stringent requirements than are currently imposed by the 1940 Act. The new rule will replace present SEC and SEC staff regulatory guidance related to limits on a registered investment
companys use of derivative instruments and certain other transactions, such as short sales and reverse repurchase agreements. The rule may substantially curtail the Funds ability to use derivative instruments as part of the Funds
investment strategy and could ultimately prevent the Fund from being able to achieve its investment goals.
Portfolio Fund Investment
Risk
Interest Rate Risk. Interest rate risk is the risk that the value of fixed income securities will fall
if interest rates increase. These securities typically fall in value when interest rates rise and rise in value when interest rates fall. Fixed income securities with longer periods before maturity are often more sensitive to interest rate changes.
If a Portfolio Fund is leveraged (i.e., borrows for investment purposes) it may be expected to have greater interest rate sensitivity.
Credit Risk; High Yield Securities. Credit risk is the risk that a borrower is unable to meet its obligation to pay
principal or interest on a fixed income security. To the extent that a Portfolio Fund invests in companies with lower-than-average credit quality, the Portfolio Fund can be expected to experience a higher rate of defaults within its portfolio than
if it invested in higher quality securities. Securities rated at the time of purchase to be below BBB- by S&P Global Ratings (S&P) or Baa3 by Moodys Investors Services, Inc. (Moodys) (or
the unrated equivalent as determined by the investment manager) are considered high yield securities, sometimes known as junk bonds. High yield, lower quality securities are considered speculative and, compared to certain
lower yielding, higher quality securities, tend to have more volatile prices and increased price sensitivity to changing interest rates
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and to adverse economic and business developments, greater
risk of loss due to default or declining credit quality, greater likelihood that adverse economic or company specific events will make the issuer unable to make interest and/or principal payments, and greater susceptibility to negative market
sentiments leading to depressed prices and decrease in liquidity. It is reasonable to expect that any adverse economic conditions could disrupt the market for lower-rated securities, have an adverse impact on the value of those securities and
adversely affect the ability of the issuers of those securities to repay principal and interest on those securities.
Nationally recognized statistical rating organizations (NRSROs) are private services that provide ratings of the credit quality of
debt obligations, including convertible securities. Ratings assigned by an NRSRO are not absolute standards of credit quality and do not evaluate market risks or the liquidity of securities. NRSROs may fail to make timely changes in credit ratings
and an issuers current financial condition may be better or worse than a rating indicates.
Unrated securities may
be less liquid than comparable rated securities and involve the risk that the investment manager may not accurately evaluate the securitys comparative credit rating. If a security is unrated, the investment manager will assign a rating using
its own analysis of issuer quality.
Leverage Risk. Portfolio Funds may employ the use of leverage. The use of
leverage is a speculative technique and there are special risks and costs associated with leverage. The NAV of the Portfolio Funds shares may be reduced by the issuance and ongoing costs of leverage. So long as the Portfolio Fund is able to
invest in securities that produce an investment yield that is greater than the total cost of leverage, the leverage strategy will produce higher current net investment income for the shareholders, including the Fund. On the other hand, to the extent
that the total cost of leverage exceeds the incremental income gained from employing such leverage, shareholders, including the Fund, would realize lower net investment income. In addition to the impact on net income, the use of leverage will have
an effect of magnifying capital appreciation or depreciation for shareholders. Specifically, in an up market, leverage will typically generate greater capital appreciation than if the Portfolio Fund were not employing leverage. Conversely, in down
markets, the use of leverage will generally result in greater capital depreciation than if the Portfolio Fund had been unlevered. To the extent that the Portfolio Fund is required or elects to reduce its leverage, the Portfolio Fund may need to
liquidate investments, including under adverse economic conditions which may result in capital losses potentially reducing returns to shareholders. The use of leverage also results in the investment management fees payable to the investment manager
being higher than if the Fund did not use leverage and can increase operating costs, which may reduce total return. In some market conditions, a Portfolio Fund may not be able to employ leverage to the extent or at the cost desired. This could
prevent a Portfolio Fund from executing its portfolio strategies or could otherwise depress shareholder returns. There can be no assurance that a leveraging strategy will be successful during any period in which it is employed.
Senior Loans Risk. The Fund may invest in Portfolio Funds that invest in senior loans. The risks associated with senior
loans are similar to the risks of junk bonds, although senior loans are typically senior and secured, whereas junk bonds are often subordinated and unsecured. Investments in senior loans are typically below investment grade and are considered
speculative because of the credit risk of their issuers. Such companies are more likely to default on their payments of interest and principal owed, and such defaults could reduce a Portfolio Funds NAV and income distributions. An economic
downturn generally leads to a higher non-payment rate, and a senior loan may lose significant value
31
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
before a default occurs. There is no assurance that the
liquidation of the collateral would satisfy the claims of the borrowers obligations in the event of the nonpayment of scheduled interest or principal, or that the collateral could be readily liquidated. Economic and other events (whether real
or perceived) can reduce the demand for certain senior loans or senior loans generally, which may reduce market prices. Senior loans and other debt securities are also subject to the risk of price declines and to increases in prevailing interest
rates, although floating-rate debt instruments such as senior loans in which certain Portfolio Funds may be expected to invest are substantially less exposed to this risk than fixed-rate debt instruments.
Convertible Securities Risk. Convertible securities are bonds, debentures, notes, preferred securities or other securities
that may be converted or exchanged (by the holder or the issuer) into shares of the underlying common stock (or cash or securities of equivalent value), either at a stated price or stated rate. Convertible securities have characteristics similar to
both fixed income and equity securities. Convertible securities generally are subordinated to other similar but non-convertible securities of the same issuer, although convertible bonds, as corporate debt
obligations, enjoy seniority in right of payment to all equity securities, and convertible preferred stock is senior to common stock, of the same issuer. Because of the subordination feature, however, convertible securities typically are considered
to be lower quality than similar non-convertible securities.
Preferred
Securities Risk. The Fund may invest in Portfolio Funds that invest in preferred securities. Preferred securities are subject to credit risk, which is the risk that a security will decline in price, or the issuer of the security will fail to
make dividend, interest or principal payments when due, because the issuer experiences a decline in its financial status. Preferred securities are also subject to interest rate risk and may decline in value because of changes in market interest
rates. Portfolio Funds may be subject to a greater risk of rising interest rates than would normally be the case in an environment of low interest rates and the effect of potential government fiscal policy initiatives and resulting market reaction
to those initiatives. In addition, an issuer may be permitted to defer or omit distributions. Preferred securities are also generally subordinated to bonds and other debt instruments in a companys capital structure. During periods of declining
interest rates, an issuer may be able to exercise an option to redeem (call) its issue at par earlier than scheduled, and the Portfolio Fund may be forced to reinvest in lower yielding securities. Certain preferred securities may be substantially
less liquid than many other securities, such as common stocks. Generally, preferred security holders have no voting rights with respect to the issuing company unless certain events occur. Certain preferred securities may give the issuers special
redemption rights allowing the securities to be redeemed prior to a specified date if certain events occur, such as changes to tax or securities laws.
Mortgage- and Asset-Backed Securities Risk. The Fund may invest in Portfolio Funds that invest in mortgage- and asset-backed
securities. The risks associated with mortgage-related securities include: (1) credit risk associated with the performance of the underlying mortgage properties and of the borrowers owning these properties; (2) adverse changes in economic
conditions and circumstances, which are more likely to have an adverse impact on mortgage-related securities secured by loans on certain types of commercial properties than on those secured by loans on residential properties; (3) prepayment
risk, which can lead to significant fluctuations in value of the mortgage-related security; (4) loss of all or part of the premium, if any, paid; and (5) decline in the market value of the security, whether resulting from changes in
interest rates or prepayments on the underlying mortgage collateral. Asset-backed securities involve certain risks in addition to those presented by mortgage-related
32
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
securities: (1) primarily, these securities do not have
the benefit of the same security interest in the underlying collateral as mortgage-related securities and are more dependent on the borrowers ability to pay; (2) credit card receivables are generally unsecured, and the debtors are
entitled to the protection of a number of state and federal consumer credit laws, many of which give debtors the right to set off certain amounts owed on the credit cards, thereby reducing the balance due; and (3) most issuers of automobile
receivables permit the servicers to retain possession of the underlying obligations.
Master Limited Partnerships
Risk. The Fund may invest in Portfolio Funds that invest in master limited partnerships (MLPs). An investment in MLP units involves some risks that differ from an investment in the common stock of a corporation. Holders of MLP units have limited
control on matters affecting the partnership. Investing in MLPs involves certain risks related to investing in the underlying assets of the MLPs and risks associated with pooled investment vehicles. MLPs holding credit-related investments are
subject to interest rate risk and the risk of default on payment obligations by debt issuers. MLPs that concentrate in a particular industry or a particular geographic region are subject to risks associated with such industry or region. The benefit
derived from the Funds investment in MLPs is largely dependent on the MLPs being treated as partnerships for federal income tax purposes. Weakening energy market fundamentals may increase counterparty risk and impact MLP profitability.
Specifically, energy companies suffering financial distress may be able to abrogate contracts with MLPs, decreasing or eliminating sources of revenue.
Call Risk. Call risk is the risk that the issuer of a bond exercises rights it may have to redeem (or call) the
bond, in whole or in part, prior to the stated maturity date. Bonds may be subject to greater call risk when interest rates are declining. In a declining interest rate environment, Portfolio Funds will likely receive a lower interest rate upon the
reinvestment of proceeds.
Equity Securities Risk. Common stock holds the lowest priority in the capital
structure of a company, and therefore takes the largest share of the companys risk and its accompanying volatility. An adverse event, such as an unfavorable earnings report, may depress the value of a particular common stock. Also, prices of
common stocks are sensitive to general market movements.
Sector Concentration Risk. Some Portfolio Funds invest
substantially, or even exclusively, in one sector or industry group and therefore carry risk of the particular sector or industry group. To the extent a Portfolio Fund focuses its investments in a specific sector, such as real estate, energy or
utilities, the Portfolio Fund will be susceptible to adverse conditions and economic or regulatory occurrences affecting the sector or industry group, which tends to increase volatility and result in higher risk.
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Real Estate. Real property investments, including investments in real estate investment trusts
(REITs), are subject to varying degrees of risk. Property values may fall due to increasing vacancies or declining rents resulting from economic, legal, cultural or technological developments. The price of real estate company shares also may drop
because of the failure of borrowers to pay their loans and poor management. Many real estate companies utilize leverage, which increases investment risk and could adversely affect a companys operations and market value in periods of rising
interest rates, as well as risks normally associated with debt financing. The yields available from investments in real estate depend on the amount of income and capital appreciation generated by the related properties. Income and real estate values
also may be adversely affected by such factors as applicable laws, interest rate levels and the availability of financing. If the properties do not generate sufficient income to meet operating expenses, including, where applicable, debt service,
ground lease payments, tenant
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33
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
|
improvements, third-party leasing commissions and other capital expenditures, the income and ability of the real estate company to make payments of any interest and principal on its debt securities will be
adversely affected. In addition, real property may be subject to the quality of credit extended to and defaults by borrowers and tenants.
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Energy. The energy industry can be significantly affected by the supply of and demand for
specific products and services, the supply and demand for oil and gas, the price of oil and gas, exploration and production spending, government regulation, world events and economic conditions. The natural resources industry can be significantly
affected by events relating to international political developments, energy conservation, the success of exploration projects, commodity prices, and tax and government regulations. At times, the performance of securities of companies in the energy
and natural resources industry will lag the performance of other industries or the broader market as a whole. Other risks inherent in investing in the energy and natural resources industry include those associated with the volatility of commodity
prices; a decrease in the production of natural gas, natural gas liquids, crude oil, coal or other energy commodities or a decrease in the volume of such commodities available for transportation, mining, processing, storage or distribution; a
decline in demand for such commodities; the inability to cost-effectively acquire additional reserves sufficient to replace depletion in resources used by energy and natural resources companies; and stricter laws, regulations or enforcement
policies, which would likely increase compliance costs.
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Utilities. Issuers in the utility industry are subject to a variety of factors that may
adversely affect their business or operations, including: high interest costs in connection with capital construction and improvement programs; difficulty in raising capital in adequate amounts on reasonable terms in periods of high inflation and
unsettled capital markets; governmental regulation of rates charged to customers; costs associated with compliance with and changes in environmental and other regulations; effects of economic slowdowns and surplus capacity; increased competition
from other providers of utility services; inexperience with and potential losses resulting from a developing deregulatory environment; and costs associated with the reduced availability of certain types of fuel, occasionally reduced availability and
high costs of natural gas for resale, and the effects of energy conservation policies.
|
Covered
Call Writing Risk. The Fund may invest in Portfolio Funds that engage in a strategy known as covered call option writing, which is designed to produce income from option premiums and offset a portion of a market decline in the
underlying security. The writer (seller) of a covered call option forgoes, during the options life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the
strike price of the call, but has retained the risk of loss should the price of the underlying security decline. The writer of an option has no control over the time when it may be required to fulfill its obligation as a writer of the option. Once
an option writer has received an exercise notice, it cannot effect a closing purchase transaction in order to terminate its obligation under the option and must deliver the underlying security at the exercise price.
Foreign (Non-U.S.) and Emerging Market Securities Risk. Some of the securities held
by certain of the Portfolio Funds may be issued by foreign issuers. Risks of investing in foreign securities, which can be expected to be greater for investments in emerging markets, include currency risks, future political and economic developments
and possible imposition of foreign withholding or other taxes on income or proceeds payable on the securities. In addition, there may be less publicly available information about a
34
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
foreign issuer than about a domestic issuer, and foreign
issuers may not be subject to the same accounting, auditing and financial recordkeeping standards and requirements as domestic issuers. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile
than securities of comparable U.S. issuers.
Investing in securities of companies in emerging markets may entail special
risks relating to potential economic, political or social instability and the risks of expropriation, nationalization, confiscation, trade sanctions or embargoes or the imposition of restrictions on foreign investment, the lack of hedging
instruments, and repatriation of capital invested. The securities and real estate markets of some emerging market countries have in the past experienced substantial market disruptions and may do so in the future.
REITs Risk. REITs are characterized as equity REITs, mortgage REITs and hybrid REITs. Equity REITs, which may include
operating or finance companies, own real estate directly, and the value of, and income earned by, the REITs depends upon the income of the underlying properties and the rental income they earn. An equity REIT may be affected by changes in the value
of the underlying properties owned by the REIT. Mortgage REITs can make construction, development or long-term mortgage loans and are sensitive to the credit quality of the borrower. Hybrid REITs combine the characteristics of both equity and
mortgage REITs, generally by holding both ownership interests and mortgage interests in real estate. Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real estate industry in general.
Municipal Bond Risk. The Fund may invest in Portfolio Funds that invest in municipal bonds. Municipal bonds are
debt obligations issued by states or by political subdivisions or authorities of states. Municipal bonds are typically designated as general obligation bonds, which are general obligations of a governmental entity that are backed by the taxing power
of such entity, or revenue bonds, which are payable from the income of a specific project or authority and are not supported by the issuers power to levy taxes. Municipal bonds are long-term fixed rate debt obligations that generally decline
in value with increases in interest rates, when an issuers financial condition worsens or when the rating on a bond is decreased. Many municipal bonds may be called or redeemed prior to their stated maturity. Lower quality revenue bonds and
other credit-sensitive municipal securities carry higher risks of default than general obligation bonds.
Restricted
and Illiquid Securities Risk. The Fund may invest in Portfolio Funds that invest in illiquid securities (i.e., securities that may be difficult to sell at a desirable time or price). Illiquid securities are securities that are not readily
marketable and may include some restricted securities, which are securities that may not be resold to the public without an effective registration statement under the Securities Act or, if they are unregistered, may be sold only in a privately
negotiated transaction or pursuant to an exemption from registration. Illiquid investments involve the risk that the securities will not be able to be sold at the time desired by the Portfolio Fund or at prices approximating the value at which the
Portfolio Fund is carrying the securities on its books. Restricted securities and illiquid securities are often more difficult to value and the sale of such securities often requires more time and results in higher brokerage charges or dealer
discounts and other selling expenses than does the sale of liquid securities trading on national securities exchanges or in the OTC markets. Contractual restrictions on the resale of securities result from negotiations between the issuer and
purchaser of such securities and therefore vary substantially in length and scope. To dispose of a restricted security that the Portfolio Fund has a contractual right to sell, the Portfolio Fund may first be required to cause the security to be
35
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
registered. A considerable period may elapse between a
decision to sell the securities and the time when the Portfolio Fund would be permitted to sell, during which time the Portfolio Fund would bear market risks.
Investment Restrictions
Fundamental Investment Restrictions
The Fund has adopted certain investment limitations limiting the following activities except as specifically authorized. Under
these limitations, the Fund may not:
1. Issue senior securities (including borrowing money for other than temporary
purposes) except in conformity with the limits set forth in the 1940 Act or pursuant to exemptive relief therefrom; or pledge, mortgage or hypothecate its assets other than to secure such issuances or borrowings or in connection with permitted
investment strategies; provided that, notwithstanding the foregoing, the Fund may borrow up to an additional 5% of its total assets for temporary purposes;
2. Act as an underwriter of securities issued by other persons, except insofar as the Fund may be deemed an underwriter in
connection with the disposition of securities;
3. Purchase or sell real estate or mortgages on real estate, except that
Portfolio Funds may invest in securities of companies that deal in real estate or are engaged in the real estate business, including REITs and securities secured by real estate or interests therein, and a Portfolio Fund may hold and sell real estate
or mortgages on real estate acquired through default, liquidation, or other distributions of an interest in real estate as a result of the Portfolio Funds ownership of such securities;
4. Purchase or sell commodities or commodity futures contracts, except that the Portfolio Funds may invest in financial futures
contracts, forward contracts and options thereon, and currency options and such similar instruments;
5. Make loans to
other persons except through the lending of securities held by it (but not to exceed a value of one-third of total assets), through the use of repurchase agreements, and by the purchase of debt securities; or
6. Invest more than 25% of its total assets in securities of issuers in any one industry; provided, however, that such
limitation shall not apply to obligations issued or guaranteed by the United States Government or by its agencies or instrumentalities.
The investment restrictions above have been adopted as fundamental policies of the Fund. Under the 1940 Act, a fundamental policy may not be changed without the approval of the holders of a majority of the outstanding
voting securities of the Fund.
Additional Non-Fundamental Investment Restrictions
Non-fundamental policies may be changed by the Funds Board
without shareholder approval. Currently, the Fund may not:
1. Acquire or retain securities of any investment company
other than (a) in accordance with the limits permitted by Section 12(d)(1) of the 1940 Act, or any exemption granted under the 1940 Act and the rules thereunder, and (b) through the acquisition of securities of any investment company
as part of a merger, consolidation or similar transaction.
36
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
MANAGEMENT OF THE FUND
The business and affairs of the Fund are managed under the direction of the Board of Directors. The Board of Directors approves all
significant agreements between the Fund and persons or companies furnishing services to it, including the Funds agreements with its investment manager, administrator, co-administrator, custodian and
transfer agent. The management of the Funds day-to-day operations is delegated to its officers, the investment manager, administrator and co-administrator, subject always to the investment objective and policies of the Fund and to the general supervision of the Board of Directors.
The Board of Directors and officers of the Fund and their principal occupations during at least the past five years are set forth
below. The statement of additional information (SAI) includes additional information about fund directors and is available, without charge, upon request by calling
800-330-7348.
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|
|
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Name, Address and
Year of Birth1
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|
Position(s) Held
With Fund
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Term of
Office2
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|
Principal Occupation
During At Least
The Past 5 Years
(Including Other
Directorships Held)
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|
Number of
Funds Within
Fund
Complex
Overseen by
Director
(Including
the Fund)
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Length
of Time
Served3
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Interested Directors4
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Robert H. Steers5
1953
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Director, Chairman
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Until Next Election of Directors
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Chief Executive Officer of Cohen & Steers Capital Management, Inc. (CSCM or the Advisor) and its parent, Cohen & Steers, Inc. (CNS) since 2014. Prior to that, Co- Chairman and Co-Chief Executive Officer of the Advisor since 2003 and CNS since 2004. Prior to that, Chairman of the Advisor; Vice President of Cohen & Steers Securities, LLC.
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21
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Since 1991
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Joseph M. Harvey5
1963
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Director
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Until Next Election of Directors
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President of the Advisor (since 2003) and President of CNS (since 2004). Chief Investment Officer of CSCM from 2003 to 2019. Prior to that, Senior Vice President and Director of Investment Research of
CSCM.
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21
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Since 2014
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(table continued on next page)
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COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
(table continued from previous page)
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|
Name, Address and
Year of Birth1
|
|
Position(s) Held
With Fund
|
|
Term of
Office2
|
|
Principal Occupation
During At Least
The Past 5 Years
(Including Other
Directorships Held)
|
|
Number of
Funds Within
Fund
Complex
Overseen by
Director
(Including
the Fund)
|
|
|
Length
of Time
Served3
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Disinterested Directors
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Michael G. Clark
1965
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Director
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Until Next Election of Directors
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From 2006 to 2011, President and Chief Executive Officer of DWS Funds and Managing Director of Deutsche Asset Management.
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21
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Since 2011
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George Grossman
1953
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Director
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Until Next Election of Directors
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Attorney-at-law.
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21
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Since 1993
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Dean A. Junkans
1959
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|
Director
|
|
Until Next Election of Directors
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|
CFA; Advisor to SigFig (a registered investment advisor) since July, 2018; Adjunct Professor and ExecutiveInResidence, Bethel University since 2015; Chief Investment Officer at Wells Fargo Private
Bank from 2004 to 2014 and Chief Investment Officer of the Wealth, Brokerage and Retirement group at Wells Fargo & Company from 2011 to 2014; former Member and Chair, Claritas Advisory Committee at the CFA Institute from 2013 to 2015; Board
Member and Investment Committee member, Bethel University Foundation since 2010; formerly Corporate Executive Board Member of the National Chief Investment Officers Circle, 2010 to 2015; formerly, Member of the Board of Governors of the University
of Wisconsin Foundation, River Falls, 1996 to 2004; U.S. Army Veteran, Gulf War.
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21
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Since 2015
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(table continued on next page)
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COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
(table continued from previous page)
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|
|
|
|
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|
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|
Name, Address and
Year of Birth1
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|
Position(s) Held
With Fund
|
|
Term of
Office2
|
|
Principal Occupation
During At Least
The Past 5 Years
(Including Other
Directorships Held)
|
|
Number of
Funds Within
Fund
Complex
Overseen by
Director
(Including
the Fund)
|
|
Length
of Time
Served3
|
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Gerald J. Maginnis
1955
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Director
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Until Next Election of Directors
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Philadelphia Office Managing Partner, KPMG LLP from 2006 to 2015; Partner in Charge, KPMG Pennsylvania Audit Practice from 2002 to 2008; President, Pennsylvania Institute of Certified Public Accountants (PICPA)
from 2014 to 2015; Member, PICPA Board of Directors from 2012 to 2016; Member, Council of the American Institute of Certified Public Accountants (AICPA) from 2013 to 2017; Member, Board of Trustees of AICPA Foundation from 2015 to 2020; Board member
and Audit Committee Chairman of inTEST Corporation since 2020.
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21
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Since 2015
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Jane F. Magpiong
1960
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Director
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|
Until Next Election of Directors
|
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President, Untap Potential since 2013; Board Member, Crespi High School from 2014 to 2017; Senior Managing Director, TIAA-CREF, from 2011 to 2013; National Head of Wealth Management, TIAA- CREF, from 2008 to
2011; and prior to that, President, Bank of America Private Bank from 2005 to 2008.
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21
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|
Since 2015
|
(table continued on next page)
39
COHEN
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(table continued from previous page)
|
|
|
|
|
|
|
|
|
|
|
Name, Address and
Year of Birth1
|
|
Position(s) Held
With Fund
|
|
Term of
Office2
|
|
Principal Occupation
During At Least
The Past 5 Years
(Including Other
Directorships Held)
|
|
Number of
Funds Within
Fund
Complex
Overseen by
Director
(Including
the Fund)
|
|
Length
of Time
Served3
|
|
|
|
|
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|
Daphne L. Richards
1966
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|
Director
|
|
Until Next Election of Directors
|
|
Independent Director of Cartica Management, LLC since 2015; Investment Committee Member of the Berkshire Taconic Community Foundation since 2015 and Member of the Advisory Board of Northeast Dutchess Fund since
2016; President and CIO of Ledge Harbor Management since 2016; formerly, worked at Bessemer Trust Company from 1999 to 2014; prior thereto, held investment positions at Frank Russell Company from 1996 to 1999. Union Bank of Switzerland from 1993 to
1996; Credit Suisse from 1990 to 1993; and Hambros International Venture Capital Fund from 1988 to 1989.
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21
|
|
Since 2017
|
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C. Edward Ward, Jr
1946
|
|
Director
|
|
Until Next Election of Directors
|
|
Member of The Board of Trustees of Manhattan College, Riverdale, New York from 2004 to 2014. Formerly, Director of closed-end fund management for the NYSE where he worked
from 1979 to 2004.
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21
|
|
Since 2004
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1
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The address for each director is 280 Park Avenue, New York, NY 10017.
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2
|
On March 12, 2008, the Board of Directors adopted a mandatory retirement policy stating a
Director must retire from the Board on December 31st of the year in which he or she turns 75 years of age.
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3
|
The length of time served represents the year in which the Director was first elected or appointed
to any fund in the Cohen & Steers fund complex.
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4
|
Interested person as defined in the 1940 Act, of the Fund because of affiliation with
CSCM (Interested Directors).
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5
|
Robert H. Steers, Chairman of the Board of Directors, is taking a medical leave of absence. In
connection with Mr. Steers leave of absence, the Board of Directors has appointed Joseph M. Harvey as Acting Chairman of the Board.
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40
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
The officers of the Fund (other than Messrs.
Steers and Harvey, whose biographies are provided above), their address, their year of birth and their principal occupations for at least the past five years are set forth below.
|
|
|
|
|
|
|
Name, Address and
Year of
Birth1
|
|
Position(s) Held
With Fund
|
|
Principal Occupation During At Least
the Past 5 Years
|
|
Length
of Time
Served2
|
|
|
|
|
Adam M. Derechin
1964
|
|
President and Chief Executive Officer
|
|
Chief Operating Officer of CSCM since 2003 and CNS since 2004.
|
|
Since 2005
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James Giallanza
1966
|
|
Chief Financial Officer
|
|
Executive Vice President of CSCM since 2014. Prior to that, Senior Vice President of CSCM since 2006.
|
|
Since 2006
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Dana A. DeVivo
1981
|
|
Secretary and Chief Legal Officer
|
|
Senior Vice President of CSCM since 2019. Prior to that, Vice President of CSCM since 2013.
|
|
Since 2015
|
|
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|
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Albert Laskaj
1977
|
|
Treasurer
|
|
Senior Vice President of CSCM since 2019. Prior to that, Vice President of CSCM since 2015. Prior to that, Director of Legg Mason & Co. since 2013.
|
|
Since 2015
|
|
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|
|
Stephen Murphy
1966
|
|
Chief Compliance Officer
and Vice President
|
|
Senior Vice President of CSCM since 2019. Prior to that, Managing Director at Mirae Asset Securities (USA) Inc. since 2017. Prior to that, Vice President and Chief Compliance Officer of Weiss Multi-Strategy
Advisers LLC since 2011.
|
|
Since
2019
|
|
|
|
|
Douglas R. Bond
1959
|
|
Vice President
|
|
Executive Vice President of CSCM since 2004.
|
|
Since 2007
|
|
|
|
|
Yigal D. Jhirad
1965
|
|
Vice President
|
|
Senior Vice President of CSCM since 2007.
|
|
Since 2007
|
1
|
The address of each officer is 280 Park Avenue, New York, NY 10017.
|
2
|
Officers serve one-year terms. The length of time served
represents the year in which the officer was first elected as an officer of any fund in the Cohen & Steers fund complex. All of the officers listed above are officers of one or more of the other funds in the complex.
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41
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
Cohen & Steers Privacy Policy
|
|
|
|
|
Facts
|
|
What Does Cohen & Steers Do With Your Personal Information?
|
|
|
Why?
|
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Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires
us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
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What?
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The types of personal information we collect and share depend on the product or service
you have with us. This information can include:
Social Security number and account balances
Transaction history and account transactions
Purchase history and wire
transfer instructions
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How?
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All financial companies need to share customers personal information to run their everyday business. In the section below, we list the reasons financial
companies can share their customers personal information; the reasons Cohen & Steers chooses to share; and whether you can limit this sharing.
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Reasons we can share your personal information
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Does Cohen & Steers
share?
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Can you limit this
sharing?
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For our everyday business purposes
such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or reports to
credit bureaus
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Yes
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No
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For our marketing purposes
to offer our products and services to you
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Yes
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No
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For joint marketing with other financial companies
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No
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We dont share
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For our affiliates everyday business purposes
information about your transactions and experiences
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No
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We dont share
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For our affiliates everyday business purposes
information about your creditworthiness
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No
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We dont share
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For our affiliates to market to you
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No
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We dont share
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For non-affiliates to market to you
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No
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We dont share
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Questions? Call 800.330.7348
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42
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
Cohen & Steers Privacy
Policy(Continued)
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Who we are
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Who is providing this notice?
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Cohen & Steers Capital Management, Inc., Cohen & Steers Asia Limited, Cohen & Steers Japan Limited, Cohen & Steers UK Limited,
Cohen & Steers Ireland Limited, Cohen & Steers Securities, LLC, Cohen & Steers Private Funds and Cohen & Steers Open and Closed-End Funds (collectively, Cohen &
Steers).
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What we do
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How does Cohen & Steers protect my personal information?
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To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer
safeguards and secured files and buildings. We restrict access to your information to those employees who need it to perform their jobs, and also require companies that provide services on our behalf to protect your information.
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How does Cohen & Steers collect my personal information?
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We collect your personal information, for example, when you:
Open an account or buy
securities from us
Provide account information or give us your contact information
Make deposits or
withdrawals from your account
We also collect your personal
information from other companies.
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Why cant I limit all sharing?
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Federal law gives you the right to limit only:
sharing for
affiliates everyday business purposesinformation about your creditworthiness
affiliates from using your information to market to you
sharing for non-affiliates to market to you
State law and individual companies may give you additional rights to limit sharing.
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Definitions
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Affiliates
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Companies related by common ownership or control. They can be financial and
nonfinancial companies.
Cohen & Steers does not share with affiliates.
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Non-affiliates
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Companies not related by common ownership or control. They can be financial and
nonfinancial companies.
Cohen & Steers does not share with
non-affiliates.
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Joint marketing
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A formal agreement between non-affiliated
financial companies that together market financial products or services to you.
Cohen & Steers does not jointly market.
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43
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
Cohen & Steers Open-End Mutual
Funds
COHEN & STEERS REALTY SHARES
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Designed for investors seeking total return, investing primarily in U.S. real estate securities
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Symbols: CSJAX, CSJCX, CSJIX, CSRSX, CSJRX, CSJZX
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COHEN & STEERS REAL ESTATE SECURITIES FUND
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Designed for investors seeking total return, investing primarily in U.S. real estate securities
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Symbols: CSEIX, CSCIX, CREFX, CSDIX, CIRRX, CSZIX
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COHEN & STEERS INSTITUTIONAL REALTY SHARES
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Designed for institutional investors seeking total return, investing primarily in U.S. real estate securities
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COHEN & STEERS
GLOBAL REALTY SHARES
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Designed for investors seeking total return, investing primarily in global real estate equity securities
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Symbols: CSFAX, CSFCX, CSSPX, GRSRX, CSFZX
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COHEN & STEERS INTERNATIONAL REALTY FUND
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Designed for investors seeking total return, investing primarily in international (non-U.S.) real estate securities
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Symbols: IRFAX, IRFCX, IRFIX, IRFRX, IRFZX
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COHEN & STEERS REAL ASSETS FUND
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Designed for investors seeking total return and the maximization of real returns during inflationary environments by investing primarily in real assets
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Symbols: RAPAX, RAPCX, RAPIX, RAPRX, RAPZX
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COHEN & STEERS PREFERRED
SECURITIES
AND INCOME FUND
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Designed for investors seeking total return (high current income and capital appreciation), investing primarily in preferred and debt securities issued by U.S. and
non-U.S. companies
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Symbols: CPXAX, CPXCX, CPXFX, CPXIX, CPRRX, CPXZX
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COHEN & STEERS LOW DURATION PREFERRED
AND INCOME FUND
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Designed for investors seeking high current income and capital preservation by investing in low-duration preferred and other income securities issued by U.S.
and non-U.S. companies
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Symbols: LPXAX, LPXCX, LPXFX, LPXIX, LPXRX, LPXZX
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COHEN & STEERS MLP & ENERGY OPPORTUNITY FUND
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Designed for investors seeking total return, investing primarily in midstream energy master limited partnership (MLP) units and related stocks
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Symbols: MLOAX, MLOCX, MLOIX, MLORX, MLOZX
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COHEN & STEERS GLOBAL INFRASTRUCTURE FUND
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Designed for investors seeking total return, investing primarily in global infrastructure securities
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Symbols: CSUAX, CSUCX, CSUIX, CSURX, CSUZX
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COHEN & STEERS ALTERNATIVE INCOME FUND
(FORMERLY COHEN & STEERS DIVIDEND VALUE FUND)
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Designed for investors seeking high current income and capital appreciation, investing in equity, preferred and debt securities, focused on real assets and alternative income strategies
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Symbols: DVFAX, DVFCX, DVFIX, DVFRX, DVFZX
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Distributed by Cohen & Steers Securities, LLC.
Please consider the investment objectives, risks, charges and expenses of any
Cohen & Steers U.S. registered open-end fund carefully before investing. A summary prospectus and prospectus containing this and other information can be obtained by calling 800-330-7348 or by visiting cohenandsteers.com. Please read the summary prospectus and prospectus carefully before investing.
44
COHEN
& STEERS CLOSED-END OPPORTUNITY FUND, INC.
OFFICERS AND DIRECTORS
Robert H. Steers
Director and
Chairman
Joseph M. Harvey
Director and Vice President
Michael G. Clark
Director
George Grossman
Director
Dean A.
Junkans
Director
Gerald J. Maginnis
Director
Jane F. Magpiong
Director
Daphne L. Richards
Director
C. Edward
Ward, Jr.
Director
Adam M. Derechin
President and
Chief Executive Officer
James Giallanza
Chief Financial Officer
Dana A. DeVivo
Secretary and Chief Legal Officer
Albert Laskaj
Treasurer
Stephen Murphy
Chief
Compliance Officer
and Vice President
Douglas R. Bond
Vice President
Yigal D. Jhirad
Vice President
KEY INFORMATION
Investment Manager and Administrator
Cohen & Steers Capital Management, Inc.
280 Park Avenue
New York, NY 10017
(212) 832-3232
Co-administrator and Custodian
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
Transfer Agent
Computershare
150 Royall Street
Canton, MA 02021
(866) 227-0757
Legal Counsel
Ropes & Gray LLP
1211
Avenue of the Americas
New York, NY 10036
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New York Stock Exchange Symbol:
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FOF
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Website: cohenandsteers.com
This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Fund shares. Performance data
quoted represent past performance. Past performance is no guarantee of future results and your investment may be worth more or less at the time you sell your shares.
45
eDelivery NOW AVAILABLE
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and prospectus online.
Sign up at cohenandsteers.com
Cohen & Steers
Closed-End
Opportunity
Fund (FOF)
Annual Report Decembert 31, 2020
Beginning in 2021, as permitted by
regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the Funds annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the
reports will be made available on the Funds website at www.cohenandsteers.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to
receive shareholder reports and other communications from a Fund electronically anytime by contacting your financial intermediary or, if you are a direct investor, by signing up at www.cohenandsteers.com.
You may elect to receive all future reports in paper, free of charge, at any time. If you invest through a financial intermediary, you can contact your financial
intermediary or, if you are a direct investor, you can call (866) 227-0757 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all Funds held in your
account if you invest through your financial intermediary or all Funds held within the fund complex if you invest directly with the Fund.
FOFAR