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- **Revenue & AUM Growth**: Q3 revenue up 4.2% to $141M, AUM expands to $90.9B (+3.5% QoQ).
- **Margin Expansion**: Operating margin improves to 36.1%, compensation ratio at 40.25% YTD.
- **Investment Success**: 93% of AUM outperforms 1-year benchmarks; ETFs lead peers by 490bps.
- **Pipeline Surge**: $1.75B one-unfunded pipeline, 66% allocated to U.S. REITs.
- **New Product Momentum**: $353M infrastructure fund offering, 2 new ETFs launching Q4.

**【CFO Financial Commentary】**
- **Revenue Growth**: Q3 revenue increased 4.2% to $141 million, driven by higher AUM and stable fee rates. Effective fee rate remained at 59 basis points.
- **AUM Expansion**: Ending AUM reached $90.9 billion, up 3.5% from Q2, with market appreciation and net inflows contributing 1.7% and 1.8% respectively.
- **Operating Margin**: Expanded to 36.1% (vs. 33.6% in Q2), supported by flat expenses and lower G&A costs.
- **Expense Management**: Compensation ratio improved to 40.25% YTD, with G&A expected to grow 9% in 2025 (vs. 2024 levels). 2026 G&A growth projected at mid-single digits.
- **Liquidity**: $364 million in liquidity at quarter-end, up 12.7% from Q2.

**【CIO Investment Performance】**
- **Short-Term Performance**: 33% of AUM outperformed benchmarks in Q3, with global infrastructure leading (+10.7%) and U.S. REITs lagging (+1.4%).
- **Long-Term Track Record**: 93% of AUM outperformed 1-year benchmarks, with 3- and 5-year excess returns of 227bps and 216bps.
- **ETF Success**: Active ETFs outperformed peers by 490bps (resource equities), 124bps (preferreds), and 217bps (real estate), with AUM surpassing $200 million.
- **Market Outlook**: Bullish on real assets due to Fed rate cuts, AI-driven CapEx, and supply-demand dynamics in natural resources.

**【CEO Business Updates】**
- **Net Flows**: Q3 net inflows of $233 million (YTD: $325M), with open-end funds (+$768M) offsetting institutional outflows (-$537M).
- **Pipeline Growth**: One-unfunded pipeline surged to $1.75 billion (Q2: $776M), 66% allocated to U.S. REITs.
- **New Products**: $353M raised in infrastructure closed-end fund rights offering, with 2 new ETFs launching in Q4.
- **Private Real Estate**: $236M raised for first drawdown fund, with nontraded REIT performing industry-leading 12.7% YTD.

**【Q&A Highlights】**
- **U.S. REIT Demand**: Wealth channel inflows driven by rate cuts and REIT valuation normalization. Institutional pipeline strength (+$1.75B) signals broader allocation shift.
- **Cash Allocation**: Expected flows into inflation-sensitive strategies (infrastructure, natural resources) and short-duration preferreds as rates decline.
- **Comp Ratio**: 2025 guidance of 40.25% expected to hold, with 2026 trends dependent on market performance and new product revenue generation.

Cohen & Steers, Inc. (CNS) Q3 2025 Earnings Call Transcript

- **Revenue Resilience**: Q2 revenue up 1.1% to $135M, with AUM rebounding to $88.9B despite April volatility.
- **Investment Excellence**: 89% of AUM outperformed benchmarks, with real estate recovery driving strategic innovation.
- **Pipeline Growth**: Won-but-unfunded pipeline rebuilt to $776M, offsetting $500M in prospective redemptions.
- **Strategic Expansion**: Active ETFs and blended real estate strategies attract new capital, with AUM growing 400% in first quarter.

**【CFO Financial Commentary】**
- Q2 revenue increased 1.1% to $135 million, driven by higher average AUM and day count. Ending AUM rose to $88.9 billion, up 1.5% from Q1, with market appreciation offsetting April's volatility.
- Operating margin was 33.6%, down from 34.7% in Q1, due to higher expenses including talent acquisition and business development (e.g., ETF launches).
- Full-year G&A expenses are expected to rise 7-8% in 2025, primarily from talent acquisition and travel costs, with a mid-single-digit growth rate post-2025.
- Effective tax rate remains stable at 25.3%.

**【CIO Investment Performance】**
- 89% of AUM outperformed benchmarks in Q2, with 94% outperforming over 1 year and 95%+ over 3-10 years. Excess returns exceed 200 basis points across timeframes.
- Real estate recovery: Private real estate prices have bottomed after 7 quarters of declines, with open-air shopping centers leading. Listed REITs are expected to lead private market repricing.
- New tactical strategy: Blended listed/private real estate strategy offers higher returns, reduced risk, and enhanced liquidity compared to core private allocations.

**【CEO Business Update】**
- Q2 net outflows of $131 million (vs. $3.2B inflows over 12 months), driven by preferred securities redemptions and institutional rebalancing. Open-end funds saw $285M inflows, 4th consecutive quarter of growth.
- Won-but-unfunded pipeline rebuilt to $776 million (vs. $61M in Q1), with 52% in U.S. real estate and 26% in global infrastructure. Prospective redemptions of $500M reduce net pipeline to $275M.
- Strategic initiatives: Active ETFs launched in Q2 (AUM $133M) show strong early performance; private real estate REIT returned 12.2% vs. 5% for peers. New infrastructure ETFs planned for H2.

**【Q&A Highlights】**
- **Wealth Channel**: RIA allocations growing, with ETFs attracting new investors. Q2 gross sales down 10% vs. prior quarters, but seasonality noted.
- **Global Infrastructure**: Q2 outflows due to institutional rebalancing, but long-term bullish on listed/private integration.
- **Geographic Demand**: U.S. remains largest market, but Asia showing momentum. Europe and Middle East lagging but opportunities exist.
- **Policy Impact**: Minimal impact from U.S. tax concerns; one European redemption noted but not a trend.

Cohen & Steers, Inc. (CNS) Q2 2025 Earnings Call Transcript

- **Resilient AUM growth**: $87.6B ending AUM (+2% Q/Q) with $222M net inflows, driven by open-end funds.
- **Strong investment performance**: 81% of AUM outperformed benchmarks, with infrastructure +4.8% vs. equities.
- **Tariff resilience**: Listed real assets (REITs, infrastructure) see minimal direct impact (-0-3% EPS) vs. S&P 500 (-10%).
- **ETF momentum**: $12.8M annualized ETF flows, with natural resource ETF leading.
- **Pipeline caution**: Institutional pipeline at $61M (vs. $531M last quarter), but 800M+ redemptions resolved.

**【CFO Financial Summary】**
- Q1 2025 revenue: $133.8M (down from $143.3M in Q4 2024), driven by lower AUM and day count.
- GAAP EPS: $0.75 vs. $0.78 in Q4; effective fee rate: 59bps (up from 58bps).
- Ending AUM: $87.6B (up 2% Q/Q), with net inflows of $222M (open-end funds: $585M inflows, offset by $364M outflows in advisory/sub-advisory).
- Operating margin: 34.7% (vs. 35.5% in Q4), with compensation ratio stable at 40.5%.
- Liquidity: $295M (down from $320M in Q4), due to annual incentive payouts.

**【CIO Investment Performance】**
- 81% of AUM outperformed benchmarks in Q1; 1-year+ outperformance >95% across strategies.
- U.S. REITs +2.8%, Global Listed Infrastructure +4.8% vs. broader equity indices.
- Real assets (infrastructure, REITs) showed resilience in volatile markets, with listed infrastructure up 5% YTD.
- Tariff impact: U.S. REITs/EPS -0-1%, infrastructure -2-3%, vs. S&P 500 earnings -10%.

**【CEO Strategic Updates】**
- 3rd consecutive quarter of net inflows ($222M), driven by open-end funds and ETF launches.
- Active ETFs launched in Q1: Real Estate, Preferreds, Natural Resources (AUM: $12.8M annualized).
- CNS REIT (private REIT) outperformed peers (+13.4% vs. 4.4% average), with 5 shopping centers in portfolio.
- Institutional pipeline: $61M (down from $531M in Q4), but 800M+ pending redemptions resolved to $290M.
- New initiatives: hybrid listed/private real estate strategy, offshore CCAP vehicles, and ETF-as-open-end-fund share class exploration.

**【Q&A Key Takeaways】**
- Wealth channel: U.S. REITs seeing interest amid rate cuts, but preferreds underperforming due to fixed income competition.
- Tariff second-order effects: slower growth (infrastructure resilient), higher inflation (supports real assets).
- ETF strategy: retaining assets from RIA clients migrating to ETFs, with natural resource ETF showing early momentum.
- Pipeline dynamics: low Q1 pipeline ($61M) reflects timing, but activity levels remain healthy for H2 conversion.
- M&A potential: open to strategic acquisitions in wealth channel to complement organic growth.

Cohen & Steers (CNS)-17 Apr 25-2025 Q1 Earnings call transcript

- **Revenue Growth**: Q4 revenue up 4.9% to $139.9M, full-year +5.9% to $518M, driven by AUM growth and performance fees.
- **Performance Excellence**: 95% of AUM outperformed benchmarks over 1 year, with 1-year excess return of 288bps.
- **New Products**: Launching 3 active ETFs in Q1 2025 targeting U.S. REITs, global preferreds, and natural resources.
- **Market Trends**: $530M pipeline reflects growing demand for real assets amid macro shifts favoring listed strategies.
- **Risks & Costs**: $800M in expected 2025 redemptions, G&A up 6-7% for ETFs and tech investments.


**【CFO Financial Commentary】**
- Q4 2024 revenue increased 4.9% sequentially to $139.9 million, driven by higher AUM and $1.4 million in performance fees. Full-year revenue rose 5.9% to $518 million.
- Operating income was $49.7 million (35.5% margin), stable from Q3. Compensation expenses rose in line with revenue, with a full-year ratio of 40.5%.
- AUM ended at $85.8 billion, down 6.6% from Q3 due to market depreciation, despite $860 million in net inflows.
- 2025 outlook includes 3 new ETF launches, G&A expenses up 6-7%, and a 25.3% tax rate.

**【CEO Business Update】**
- 95% of AUM outperformed benchmarks over 1 year, with 1-, 3-, and 5-year excess returns of 288, 162, and 224 basis points.
- Q4 net inflows of $860 million (open-end funds) offset $205 million in sub-advisory outflows. Full-year net outflows were $171 million.
- Pipeline of $530 million reflects growing interest in real assets, with 50% in real estate and 42% in infrastructure.
- 2025 initiatives include ETF launches (U.S. REITs, preferreds, natural resources), expanding private real estate, and targeting RIAs.

**【Q&A Highlights】**
- **ETF Strategy**: 3 active ETFs launching Q1 2025, targeting RIAs with $119B in passive REITs. No cannibalization risk due to active management focus.
- **Redemption Risk**: $800M in expected 2025 redemptions (half from Q1), driven by private allocations and client rebalancing.
- **International Growth**: Expanding offices in London, Tokyo, Hong Kong, and Singapore to tap Asian demand for real assets.
- **Operating Leverage**: 2025 G&A up 6-7% for ETFs, private real estate, and tech. Margins depend on market recovery and organic growth.
- **M&A Policy**: Focused on organic growth but open to strategic acquisitions if aligned with core strategies.


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