2024-02-04 12:08:41 ET
Summary
- Cohen & Steers Total Return Realty Fund (RFI) invests in a basket of quality REIT investments and carries a sleeve of preferreds.
- RFI is similar to its sister fund, RQI; however, RFI uses no borrowing in its strategy, making it a relatively less risky fund.
- RFI is around fair value, but if you have a strong outlook on REITs going forward, it could still be a great long-term bet.
Written by Nick Ackerman, co-produced by Stanford Chemist.
The last time we touched on Cohen & Steers Total Return Realty Fund ( RFI ), we also took a look at Cohen & Steers Quality Income Realty Fund ( RQI ). These funds are quite similar in terms of their approach in terms of investing in mostly equity real estate investment trust ("REIT") securities but also include a sleeve of preferred and fixed-income instruments. In fact, for RFI and RQI, the funds mirror each other exactly currently, with 81% listed as invested in common stock and 19% in preferred and fixed-income.
The major difference between the two is that RQI also incorporates leverage into its strategy while RFI remains non-leveraged. Since that previous update in May 2023, RFI slightly outperformed RQI on a total share price basis. However, this was reversed on a total NAV return basis. This indicates that while RQI's portfolio performed better - it wasn't actually reflected in the market price....
Read the full article on Seeking Alpha
For further details see:
RFI: Steady Distributions From This Non-Leveraged REIT CEF