Cohen & Steers Q1 2025: Diverging Views on REITs, Preferred Stocks, and ETF Strategies
Sunday, Apr 20, 2025 2:43 am ET
2min read These are the key contradictions discussed in Cohen & Steers's latest 2025Q1 earnings call, specifically including: Investor Interest in U.S. REITs, Interest in Preferred Stock Strategies, and the Approach to Active ETFs and Private Real Estate Strategies:
Revenue and Asset Management Trends:
- Cohen & Steers reported revenue of $133.8 million for Q1 2025, a decrease from the previous quarter, with an effective fee rate of 59 basis points.
- The decrease in revenue was primarily due to lower average assets under management (AUM) and lower day count compared to the prior quarter.
Asset Under Management Fluctuations:
- Ending AUM increased to $87.6 billion as of Q1 2025, up from $85.8 billion at the prior quarter end, driven by net inflows and market appreciation.
- The increase in AUM was despite institutional outflows, which were anticipated, and a substantial unfunded pipeline decline due to market conditions.
Investment Performance and Strategy Focus:
- 81% of Cohen & Steers' AUM outperformed the benchmark in Q1, with 92% of open-end fund AUM rated four or five stars by Morningstar.
- The focus on real assets and infrastructure strategies is gaining momentum, driven by attractive valuations and macroeconomic factors like tariffs and inflation.
Institutional Advisory and Wealth Channel Dynamics:
- Institutional advisory experienced $108 million net outflows, while the wealth channel led firm-wide net inflows for the past three quarters, totaling $222 million in Q1.
- The wealth channel's inflows are driven by strong investment performance, brand recognition, and client relationships, particularly in global listed infrastructure and open-end funds.
Revenue and Asset Management Trends:
- Cohen & Steers reported revenue of $133.8 million for Q1 2025, a decrease from the previous quarter, with an effective fee rate of 59 basis points.
- The decrease in revenue was primarily due to lower average assets under management (AUM) and lower day count compared to the prior quarter.
Asset Under Management Fluctuations:
- Ending AUM increased to $87.6 billion as of Q1 2025, up from $85.8 billion at the prior quarter end, driven by net inflows and market appreciation.
- The increase in AUM was despite institutional outflows, which were anticipated, and a substantial unfunded pipeline decline due to market conditions.
Investment Performance and Strategy Focus:
- 81% of Cohen & Steers' AUM outperformed the benchmark in Q1, with 92% of open-end fund AUM rated four or five stars by Morningstar.
- The focus on real assets and infrastructure strategies is gaining momentum, driven by attractive valuations and macroeconomic factors like tariffs and inflation.
Institutional Advisory and Wealth Channel Dynamics:
- Institutional advisory experienced $108 million net outflows, while the wealth channel led firm-wide net inflows for the past three quarters, totaling $222 million in Q1.
- The wealth channel's inflows are driven by strong investment performance, brand recognition, and client relationships, particularly in global listed infrastructure and open-end funds.
