Cohen & Steers Q2 2025: Unpacking Contradictions in ETF Strategies, Real Estate Demand, and Infrastructure Flows

Sales and marketing focus on ETFs, appetite for real estate investments, active ETF rollout strategy, global real estate flows and investor demand, infrastructure flows and market interest are the key contradictions discussed in Cohen & Steers' latest 2025Q2 earnings call.



Investment Performance and Asset Growth:
- Cohen & Steers reported end-of-period AUM of $88.9 billion in Q2, up from $87.6 billion in Q1.
- The growth in AUM was driven by market appreciation during the quarter, despite temporary negative impacts from market events in April.

Revenue and Expense Management:
- Revenue for Q2 increased by 1.1% from the prior quarter to $135 million.
- Expenses were 2.9% higher than the prior quarter due to increased compensation and benefits, higher distribution and service fees, and higher G&A expenses related to sales and distribution activities.

Strategic Investments and Growth Initiatives:
- Cohen & Steers launched three active ETFs, with a strong start in terms of investment performance and net inflows of $54 million in the first full quarter.
- The company continues to progress with its private real estate initiative, with Cohen & Steers Income Opportunities REIT being the best-performing non-traded REIT.

Pipeline and Redemptions:
- The company's won but unfunded pipeline increased to $776 million, although there are $500 million in prospective redemptions.
- The increase in the pipeline is attributed to new mandates and takeaways from competitors, while known redemptions are due to tactical adjustments and outflows from less competitive strategies.