Company: FOF
Filing Date: 2025-09-05
Form Type: N-CSRS
Source: 0001193125-25-196847
Chunk: 2

Company: Cohen & Steers Closed-End Opportunity Fund, Inc.
Filing Date: 2025-09-05
Form: N-CSRS
Chunk 2
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 Plan at any time without prior notice to Fund shareholders; however, at this time, there are no reasonably foreseeable circumstances that might cause the termination. The termination of the Plan could have the effect of creating a trading discount (if the Fund’s stock is trading at or above NAV) or widening an existing trading discount.

Market Review

Closed-endfunds posted positive returns in the first half of 2025, navigating a complex environment characterized by shifting policy expectations, geopolitical tensions, and evolving monetary policy dynamics. The period was marked by significant volatility as markets grappled with the implications of new administration policies, trade tensions, and persistent inflation concerns.

The six-monthperiod began with optimism surrounding expectations of a vibrant U.S. economy and potential benefits from reduced regulation under the new administration. However, market sentiment shifted dramatically as developments through the first quarter, including threats of a trade war, led to heightened volatility and prompted a rotation toward defensive sectors. The second quarter witnessed a sharp turnaround following a policy reversal and preliminary U.S.-China trade agreement, which restored investor confidence with mega-captechnology stocks leading the rally.

Inflation dynamics remained a persistent concern throughout the period, easing but remaining stubbornly above the Federal Reserve’s target. The Fed maintained its benchmark interest rate unchanged during the first half of the year, while Treasury yields exhibited range-bound behavior with periodic yield curve steepening (widening spreads between short- and long-term yields) in response to fiscal developments. The European Central Bank pursued a more accommodative stance, implementing multiple rate cuts amid easing inflation pressures.

All three major closed-endfund asset categories posted positive returns during the period, with performance varying significantly based on underlying exposures and market positioning. Overall, discounts to NAV narrowed substantially, providing an additional tailwind for investors beyond underlying asset performance.

Equity funds experienced robust performance, driven initially by single-commodity funds focused on precious metals, which benefited from economic uncertainty. The sector rotation that characterized the period initially favored defensive, income-generating assets, including utilities and health care sector funds. However, as sentiment improved in the second quarter, broadly diversified funds took leadership alongside globally oriented funds.

Taxable fixed income funds delivered positive returns, benefiting from the lower-rate environment and attractive income rates that drew investors’ attention. Credit-sensitive sectors generally outperformed their rate-sensitive counterparts, with convertible bond funds posting significant gains fueled by their exposure to growth and technology stocks. Tax-freemunicipal bond funds faced challenges from heightened interest rate volatility throughout the period.

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Cohen & Steers Closed-EndOpportunity