SCHEDULE: Morgan Stanley Exits 5% Stake in Cohen & Steers Fund

Morgan Stanley and its subsidiary have reported a decrease in their beneficial ownership of Cohen & Steers Select Preferred & Income Fund, Inc. common stock to below the 5% threshold.

Summary

• Morgan Stanley and Morgan Stanley Smith Barney LLC have filed an amendment to their Schedule 13G, indicating they no longer beneficially own more than five percent of the common stock of Cohen & Steers Select Preferred & Income Fund, Inc.
• The filing states that as of June 30, 2026, their aggregate beneficial ownership is 546,936 shares, representing 4.6% of the class of securities.
• This filing is an amendment (Amendment No. 2) to a previous Schedule 13G.
• Morgan Stanley is identified as a parent holding company, and Morgan Stanley Smith Barney LLC is its wholly-owned subsidiary.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a neutral filing, primarily indicating a change in reporting status rather than a significant shift in the company's operational or financial performance.

Positives

• The filing clearly communicates a reduction in ownership stake, providing transparency to the market.
• The reporting entities are established financial institutions, lending credibility to the disclosure.

Negatives

• The filing does not provide specific reasons for the reduction in ownership, leaving the strategic intent unclear.
• A significant reduction in stake by a large institutional holder could be perceived negatively by the market, although the filing states it's below the 5% threshold.

Risks

• Potential for market perception of reduced institutional confidence in the issuer.
• The filing does not detail any specific risks associated with this change in ownership status.

Future Outlook

The filing itself does not contain forward-looking statements or guidance regarding the future outlook of Cohen & Steers Select Preferred & Income Fund, Inc. It solely reports a change in beneficial ownership status.

Management Comments

• "As of the date hereof, Morgan Stanley has ceased to be the beneficial owner of more than five percent of the class of securities."
• "As of the date hereof, Morgan Stanley Smith Barney LLC has ceased to be the beneficial owner of more than five percent of the class of securities."
• "The securities being reported on by Morgan Stanley as a parent holding company are owned, or may be deemed to be beneficially owned, by Morgan Stanley Smith Barney LLC, a wholly-owned subsidiary of Morgan Stanley."

Industry Context

StockSavvy.ai notes that Schedule 13G filings are common for institutional investors and indicate changes in significant ownership stakes. A reduction below the 5% threshold often signifies a shift in investment strategy or portfolio management by the reporting entity, but does not inherently signal a negative outlook for the issuer.

Stakeholder Impact

• Shareholders: May perceive a reduced institutional endorsement, potentially impacting short-term sentiment, though the 4.6% ownership is still significant.
• Creditors: No direct impact indicated by this filing.
• Employees: No direct impact indicated by this filing.
• Suppliers: No direct impact indicated by this filing.
• Customers: No direct impact indicated by this filing.

Next Steps

• Monitor future filings by Morgan Stanley and Morgan Stanley Smith Barney LLC for any further changes in their ownership of Cohen & Steers Select Preferred & Income Fund, Inc.
• Observe market reaction to this change in institutional ownership.

Key Dates

Keywords

Schedule 13G, Beneficial Ownership, Morgan Stanley, Cohen & Steers Select Preferred & Income Fund, Ownership Threshold, Institutional Investor, Securities Exchange Act