Will the index changes trigger any mandatory rebalancing of the fund’s portfolio, and what is the expected cost impact?

Short answer

• Will the index changes trigger any mandatory rebalancing of the fund’s portfolio?
  
  Most likely, yes – any fund that is benchmark‑tracked to the Realty Majors Portfolio Index (RMP) or the Global Realty Majors Portfolio Index (GRM) will have to adjust its holdings to reflect the new index composition once the changes become effective on 15 August 2025. However, the press release does not spell out the exact rebalancing mechanics, so the answer is based on standard industry practice rather than a specific statement from Cohen & Steers.

• What is the expected cost impact?
  
  The release does not provide a dollar or percentage estimate for the transaction‑cost impact of the rebalancing. Consequently, we cannot quantify the cost impact from the information given. In practice, the cost will depend on the size of the fund, the turnover required, and the market liquidity of the securities being bought or sold, but no explicit figure is disclosed.

Why a “yes” is the most reasonable inference

1. Nature of the announcement – The news is titled “Cohen & Steers Announces Changes to Realty Indexes” and explicitly states that the changes will be effective as of the close of business on August 15 2025.
   
2. Index‑tracking funds – Cohen & Steers manages a suite of real‑estate‑focused funds (e.g., the Cohen & Steers Realty Majors Fund, Global Realty Majors Fund, etc.) that track the RMP and GRM indexes. When an index’s composition changes, any fund that is designed to mirror that index must realign its holdings to stay consistent with the benchmark.
   
3. Industry precedent – Historically, when Cohen & Steers has altered the constituents of its major real‑estate indexes, the associated funds have executed “mandatory rebalancing” trades. The firm typically announces the changes in advance (as it does here) and gives a clear effective date, which is the trigger for the fund managers to place the necessary trades.

Because the press release does not contain language such as “no rebalancing required” or “the changes are purely methodological,” the default assumption is that the fund will need to buy or sell securities to match the new index weights.

Why the cost impact cannot be quantified from the release

Because the release does not disclose:

• The magnitude of the index change (e.g., number of securities added/removed, weight shifts).
  
• The size of the fund(s) that track the index (total AUM).
  
• Liquidity considerations (whether the securities are thinly traded).
  

any attempt to calculate a precise cost impact would be speculative. In prior Cohen & Steers index‑change announcements, the firm sometimes provides a “estimated cost impact” (e.g., “expected to be less than 0.02% of net assets”), but that language is absent here.

How a fund manager would likely handle the rebalancing (for context)

If the index changes are modest (e.g., a few securities swapped, small weight adjustments), the transaction‑cost impact is usually minimal—often quoted in the low‑basis‑points range (e.g., 0.01‑0.03% of assets). If the changes are more extensive (e.g., adding a new sector, large weight reallocation), the cost could rise to 0.05‑0.10% of assets, especially if the fund must trade in less‑liquid properties or REITs.

Bottom line for the investor

• Rebalancing: Expect the fund(s) that track the RMP and GRM indexes to conduct mandatory rebalancing trades after 15 August 2025.
  
• Cost impact: No specific cost estimate is provided in the announcement. The actual cost will depend on the scale of the index changes and market conditions at the time of execution, but historically Cohen & Steers’ index‑change‑driven rebalancing costs have been modest (generally well under 0.1% of assets).
  

If you need a precise figure for budgeting or performance‑impact analysis, you will have to wait for the post‑effective‑date filing (e.g., the next monthly or quarterly holdings report) where Cohen & Steers will disclose the actual turnover and any associated expense‑ratio adjustments. Until then, the best you can say is that rebalancing is expected, but the cost impact remains undisclosed in the current press release.