Cohen & Steers' AUM Growth in August 2025: A Signal of Resilience in Real Assets?

Cohen & Steers reported preliminary assets under management (AUM) of $90.4 billion as of August 31, 2025, a $1.8 billion increase from July 31, 2025Cohen & Steers Announces Preliminary Assets Under ..., [https://finance.yahoo.com/news/cohen-steers-announces-preliminary-assets-202500222.html]^[1]. This growth, driven by $1.8 billion in market appreciation and $104 million in net inflows, underscores the firm's resilience amid market volatility. While distributions offset part of the inflows, the firm's strategic focus on real assets and alternative income appears to have insulated it from broader market turbulence.

Market Conditions and Real Assets' Resilience

August 2025 saw real assets demonstrate remarkable stability, even as trade-related uncertainties persisted. U.S. real estate markets, for instance, held steady despite fluctuations in trade policy and tariff negotiations. According to a report by NCREIF, U.S. all-property capital values remained flat quarter-over-quarter in 2Q25, but total returns reached 1.2% QoQThe Red Thread for Alternatives – Edition July/August 2025, [https://www.ubs.com/global/en/assetmanagement/insights/asset-class-perspectives/private-markets/articles/trtalts-monthly-blog-edition-july-august-2025.html]^[3]. Retail and residential sectors outperformed, while industrial markets slowed due to cautious occupier behaviorNew Issuance Is Driving Greater Diversification in Preferred Securities, [https://www.cohenandsteers.com/insights/new-issuance-is-driving-greater-diversification-in-preferred-securities/]^[4]. Cross-border real estate investments also rose, particularly in Asia Pacific and the Americas, signaling investor confidence in the asset classNew Issuance Is Driving Greater Diversification in Preferred Securities, [https://www.cohenandsteers.com/insights/new-issuance-is-driving-greater-diversification-in-preferred-securities/]^[4].

The alternative income sector fared equally well. Corporate direct lending funds and business development companies maintained low non-accrual rates, indicating minimal default riskThe Red Thread for Alternatives – Edition July/August 2025, [https://www.ubs.com/global/en/assetmanagement/insights/asset-class-perspectives/private-markets/articles/trtalts-monthly-blog-edition-july-august-2025.html]^[3]. Meanwhile, private equity and infrastructure fundraising gained momentum, especially in core plus strategies and digital infrastructureThe Red Thread for Alternatives – Edition July/August 2025, [https://www.ubs.com/global/en/assetmanagement/insights/asset-class-perspectives/private-markets/articles/trtalts-monthly-blog-edition-july-august-2025.html]^[3]. These trends align with Cohen & Steers' long-standing emphasis on real assets and alternative income, which now constitute a significant portion of its AUM.

Strategic Positioning: Listed Real Estate and Liquidity Demand

Cohen & Steers has strategically positioned itself to capitalize on shifting investor preferences. Institutional investors increased their real estate allocations by nearly 200 basis points since 2013, with 67% citing liquidity as the primary reason for investing in listed REITsCohen & Steers Announces Preliminary Assets Under ..., [https://finance.yahoo.com/news/cohen-steers-announces-preliminary-assets-202500222.html]^[1]. This shift reflects the denominator effect, where declining public valuations have made real estate allocations appear larger within portfoliosCohen & Steers Announces Preliminary Assets Under ..., [https://finance.yahoo.com/news/cohen-steers-announces-preliminary-assets-202500222.html]^[1]. By 2025, public real estate valuations had risen, reversing earlier under-allocation trendsCohen & Steers Announces Preliminary Assets Under ..., [https://finance.yahoo.com/news/cohen-steers-announces-preliminary-assets-202500222.html]^[1].

The firm's focus on a blended approach to real assets—including listed real estate, natural resource equities, commodities, and global listed infrastructure—has proven advantageous. As the Federal Reserve initiated rate cuts and inflation breakevens rose, real assets became increasingly attractiveThe Fed, Inflation and Real Assets: Five Charts Highlighting the Macro Landscape, [https://www.cohenandsteers.com/insights/the-fed-inflation-and-real-assets-five-charts-highlighting-the-macro-landscape-2/]^[5]. Historical data shows that real assets outperform in such environments, with listed real estate leading the chargeThe Fed, Inflation and Real Assets: Five Charts Highlighting the Macro Landscape, [https://www.cohenandsteers.com/insights/the-fed-inflation-and-real-assets-five-charts-highlighting-the-macro-landscape-2/]^[5]. Cohen & Steers' AUM breakdown—$44.0 billion in Open-end Funds and $34.7 billion in Institutional Accounts—reflects this strategic alignmentThe Real Estate Reel: How Institutions Are Invested in Real Estate Headed into 2025, [https://www.cohenandsteers.com/insights/the-real-estate-reel-how-institutions-are-invested-in-real-estate-headed-into-2025/]^[2].

AUM Drivers and Sector Dynamics

While Open-end Funds saw $247 million in net inflows, Institutional Advisory accounts faced $162 million in outflowsThe Real Estate Reel: How Institutions Are Invested in Real Estate Headed into 2025, [https://www.cohenandsteers.com/insights/the-real-estate-reel-how-institutions-are-invested-in-real-estate-headed-into-2025/]^[2]. This divergence highlights the nuanced dynamics within the firm's asset categories. Open-end Funds, which include real estate and alternative income products, benefited from market appreciation and investor demand for liquidity. Conversely, Institutional outflows may reflect shifting portfolio allocations or client-specific redemptions.

The firm's performance in preferred securities also contributed to its resilience. Falling interest rates in the first half of 2025 bolstered preferred securities, with solid issuer fundamentals and favorable market dynamicsNew Issuance Is Driving Greater Diversification in Preferred Securities, [https://www.cohenandsteers.com/insights/new-issuance-is-driving-greater-diversification-in-preferred-securities/]^[4]. This aligns with Cohen & Steers' expertise in structuring alternative income solutions, which have remained stable despite macroeconomic headwinds.

Conclusion: A Signal of Resilience

Cohen & Steers' AUM growth in August 2025 is not merely a function of market appreciation but a reflection of its strategic positioning in real assets and alternative income. As real estate and infrastructure markets navigated trade uncertainties and rate cuts, the firm's focus on liquidity, diversification, and sector-specific expertise proved advantageous. With real assets poised to benefit from ongoing macroeconomic shifts, Cohen & Steers' AUM trajectory suggests a broader trend: investors are increasingly turning to real assets as a hedge against volatility.