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Two odd press releases after the close yesterday, both pertaining to our favorite REIT focused fund. According to the first, Cohen & Steers Advantage Income Realty Fund, Inc. (RLF), Cohen & Steers Worldwide Realty Income Fund, Inc. (RWF), Cohen and Steers Premium Income Realty Fund, Inc. (RPF) and Cohen & Steers Quality Income Realty Fund, Inc. (NYSE:RQI) have all merged with and into RQI. It apears that even despite the magical ramp of all REITs this quarter, those pesky "size matters" issues have reared their ugly heads for the 4 various closed-end funds (all four combined represent less than half a billion in net assets):

In approving the mergers, the directors considered, among other things, each fund's investment objectives, net asset value and stock price performance, income-generating strategy and expenses, and potential cost savings based on operational efficiencies. The mergers will permit fund shareholders to pursue substantially similar investment objectives in a larger fund that has similar investment policies and anticipated lower expenses.

Zero Hedge is anxiously waiting to see the proxy information that will accompany this transaction in order to get justification for the move.

And in another almost idential press release C&S announce the merging of its REIT and Utility Income Fund with the Cohen & Steers Select Utility Fund (NYSE:UTF). An interesting tidbit from the PR:

The board also has approved removal of UTF's 20% limit on investing in foreign securities, so that the fund can invest without limit in foreign securities, including securities of companies in emerging market countries, to the extent consistent with the fund's investment objective and other investment policies. The changes will broaden UTF's geographic investment universe and open up potentially higher-growth sub-sectors while maintaining similar investment characteristics.

Nothing like having no size limits in a $1.4 billion fund. Visions of Bill Ackman's PSIV (Target) adventure, and its dramatic returns, start floating. Of course, one needs dry powder for when Merrill starts upgrading and issuing secondaries for the Honduras mall REIT that is 'almost' guaranteed to generate 1000% return once the Honduras SEC pulls all borrow.

Source: Cohen & Steers Realty Funds Merge