<SEC-DOCUMENT>0001193125-14-038552.txt : 20140612
<SEC-HEADER>0001193125-14-038552.hdr.sgml : 20140612
<ACCEPTANCE-DATETIME>20140206133329
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-14-038552
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20140206

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COHEN & STEERS TOTAL RETURN REALTY FUND INC
		CENTRAL INDEX KEY:			0000891290
		IRS NUMBER:				133680664
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		280 PARK AVENUE
		STREET 2:		10TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
		BUSINESS PHONE:		2128323232

	MAIL ADDRESS:	
		STREET 1:		280 PARK AVENUE
		STREET 2:		10TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	COHEN & STEERS OPPORTUNITY TRUST INC
		DATE OF NAME CHANGE:	19930714
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
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<TITLE>&lt;![CDATA[Cohen &amp; Steers Total Return Realty Fund, Inc]]&gt;</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>COHEN&nbsp;&amp; STEERS TOTAL RETURN REALTY FUND, INC. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>280 Park Avenue, 10<SUP STYLE="font-size:85%; vertical-align:top">th</SUP> Floor </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>New York, New York 10017 </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">February&nbsp;6,
2014 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>VIA EDGAR </U></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">450 Fifth Street, N.W.
</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Attention: John Grzeskiewicz, Senior
Counsel and Kathy Churko </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">Re:</TD>
<TD ALIGN="left" VALIGN="top">Cohen&nbsp;&amp; Steers Total Return Realty Fund, Inc. </TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Response to Comments on Proxy/Prospectus on Form N-14<U> </U></TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><U>File Numbers: 333-193107; 811-07154</U> </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ladies and Gentlemen: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thank you for the comments of the staff (the &#147;Staff&#148;) of the Securities and Exchange Commission (the &#147;SEC&#148;), specifically comments provided
to us by John Grzeskiewicz and Kathy Churko of the Staff by telephone on January&nbsp;23, 2014, and by Kathy Churko and Laura Hatch of the Staff by telephone on January&nbsp;31, 2014, to the initial proxy statement / registration statement on
Form&nbsp;N-14 filed on behalf of Cohen&nbsp;&amp; Steers Total Return Realty Fund, Inc. (the &#147;Fund&#148;) on December&nbsp;27, 2013 (the &#147;Proxy/Prospectus&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Although the Fund intends to respond to all of the comments in due course, in the interest of time we thought it would be helpful to discuss certain comments
in advance. In particular, comments regarding the sale of securities and tax consequences relating to the proposed Reorganization are addressed herein. Capitalized terms used but not defined herein have the meanings assigned to them in the Proxy/
Prospectus. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>PROSPECTUS/PROXY </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Proposal 1
</U></B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Information about the Proposed Reorganization &#150; Material U.S. Federal Income Tax Consequences </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top">On page 32 of the Proxy/Prospectus, please expand the third paragraph which begins &#147;A portion of the portfolio assets of Acquired Fund&#133;&#148; to include the percentage of the DVM&#146;s portfolio to be sold,
and the estimated capital gains and/or losses and transaction costs associated with such sale of portfolio securities, including per share costs. Also, please confirm whether the Acquired Fund will comply with its investment policies during the
transition of its portfolio. Please make the necessary revisions, as appropriate, throughout the Proxy/Prospectus, including on page 33 under the heading &#147;Portfolio Securities&#148;. </TD></TR></TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><U>Response</U>: The requested changes have been made. The third paragraph has been revised as
follows: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">A portion of the portfolio assets of the Acquired Fund may be sold in connection with the Reorganization. The actual tax
consequences effect of such sales will depend on the difference between the price at which such portfolio assets are sold and the Acquired Fund&#146;s basis in such assets. It is expected that DVM prior to the Closing and the combined Fund post the
Closing will each sell a portion of DVM&#146;s dividend paying large cap value securities in connection with the Reorganization. Please see &#147;Portfolio Securities&#148; below for further information. </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top"><U>Staff Comment</U>: Please reconcile the disclosure on the bottom of page 32 of the Proxy/Prospectus regarding DVM&#146;s capital loss carryforwards with the statement set forth on page 33 under the heading
&#147;Portfolio Securities&#148; regarding the use of capital loss carryforwards to offset any of the Acquired Fund&#146;s capital gains realized from the sale of portfolio securities. Please make sure the date as of which this disclosure applies.
Please make the necessary revisions, as appropriate, throughout the Proxy/Prospectus. </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><U>Response</U>: The requested
changes have been made. The disclosure regarding DVM&#146;s capital loss carryforwards and &#147;Portfolio Securities&#148; section have been revised as follows: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>Information Regarding Tax Capital Loss Carryforwards</I> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Based on DVM&#146;s investment portfolio as of October&nbsp;31, 2013, it is estimated that DVM will use its capital loss carryforwards to
offset capital gains generated upon the sale of a portion of its dividend paying large cap value securities prior to the Closing. As a result, it is not expected that any unused capital loss carryforwards will be transferred to RFI. Please see
&#147;Portfolio Securities&#148; below for further information. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>PORTFOLIO SECURITIES </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Because DVM has an investment policy to invest, under normal circumstances, at least 25% of its assets in dividend paying large cap value
securities and RFI does not focus its investments in such securities, the Investment Manager expects to dispose of DVM&#146;s dividend paying large cap value securities in connection with the Reorganization. As of October&nbsp;31, 2013, dividend
paying large cap value securities comprised approximately 54% of DVM&#146;s portfolio. It is estimated that if the Reorganization had occurred on October&nbsp;31, 2013, to minimize the tax impact to the Funds&#146; stockholders, the Investment
Manager would have sold approximately 61% of DVM&#146;s dividend paying large cap value investments prior to the Closing and the remainder would have been sold by the combined Fund immediately after the Closing. If stockholders approve the
Reorganization, in order for DVM to reposition its portfolio, DVM may not be in compliance with its policy to invest at least 25% of its assets in dividend paying large cap value securities during the period between the date the Reorganization is
approved and the Closing. The tax impact to stockholders of DVM on the sale of certain DVM portfolio assets during the period between the date the Reorganization is approved and the Closing will depend on the difference between the price at which
such assets are sold and DVM&#146;s tax basis in such assets. Any capital gains recognized in these sales on a net basis, after the application of any available capital loss carryforwards, will be distributed to DVM&#146;s stockholders as capital
gain dividends (to the extent of net realized long-term capital gains distributed) and/or ordinary dividends (to the extent of net short-term capital gain) during or with respect to DVM&#146;s taxable year that ends on the day of the Closing, and
such distributions will be taxable to stockholders. As of October&nbsp;31,&nbsp;2013, any capital gains recognized by DVM as a result of repositioning a portion of its portfolio prior to the Closing are expected to be offset against the aggregate
amount of DVM&#146;s unused capital loss carryforwards and distributions in excess of income earned. The estimated transaction costs associated with selling certain dividend paying large cap value securities and repositioning DVM&#146;s portfolio
prior to the Closing are $0.007 per DVM share, and would be borne by DVM stockholders only. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In addition, the combined Fund would sell any
remaining dividend paying large cap value securities that were transferred to it on the Closing. As of October&nbsp;31, 2013, it is expected that the combined Fund would </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">
have recognized $0.45 per share in capital gains as a result of liquidating any remaining dividend paying large cap value securities. This estimated per share capital gain distribution for the
combined Fund is expected to be less than the estimated capital gain distribution each Fund&#146;s stockholders would receive if the Funds continued to operate in the normal course of business during 2014 without reorganizing. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The estimated transaction costs associated with the combined Fund selling dividend paying large cap value securities and repositioning the
combined Fund&#146;s portfolio post the Closing are estimated to be $0.002 per share, and such costs would be borne by stockholders of the combined Fund. Please note the above estimates are as of October&nbsp;31, 2013 and may vary significantly from
those experienced by the Funds in the Reorganization as a consequence of developments in the financial markets or other factors, and the Investment Manager, in conjunction with the Funds&#146; Boards, may manage the disposition of DVM&#146;s
dividend paying large cap value securities in a manner otherwise than as described herein. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Please confirm that the Staff would not object to the
inclusion in the Proxy/Prospectus of the disclosure as set forth above. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Please direct any questions concerning this letter to
the undersigned at (212)&nbsp;796-9361. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Sincerely, </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>/s/
Tina M. Payne </U></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Tina M. Payne </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">cc:</TD>
<TD ALIGN="left" VALIGN="top">Michael G. Doherty, Esq., Ropes&nbsp;&amp; Gray LLP </TD></TR></TABLE>
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