Latest news with #Cohen&SteersInc
Yahoo
18-04-2025
- Business
- Yahoo
Cohen & Steers Inc (CNS) Q1 2025 Earnings Call Highlights: Navigating Market Volatility ...
Release Date: April 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cohen & Steers Inc (NYSE:CNS) reported a third consecutive quarter of net inflows, with $222 million in net inflows firm-wide. The company's global listed infrastructure strategy experienced strong flows, with $586 million of net inflows. Cohen & Steers Inc (NYSE:CNS) launched its first three active ETFs, which have begun to see inflows, particularly in the Natural Resource equities ETF. The company's open-end funds have been rated 4 or 5 stars by Morningstar, with 92% of AUM achieving this rating. Cohen & Steers Inc (NYSE:CNS) has a strong balance sheet, providing stability and the ability to capitalize on market dislocations. Cohen & Steers Inc (NYSE:CNS) reported a decrease in earnings per share to $0.75 from $0.78 sequentially. Revenue for Q1 decreased to $133.8 million, driven by lower average AUM and lower dayco compared to the prior quarter. The company's operating margin decreased to 34.7% from 35.5% in the prior quarter. The institutional advisory unfunded pipeline declined significantly to $61 million from $531 million last quarter. Cohen & Steers Inc (NYSE:CNS) experienced outflows in preferred stock strategies, which was unexpected given their strong performance. Warning! GuruFocus has detected 3 Warning Signs with CNS. Q: Can you provide more color on the wealth management channel and the current trends in April, particularly regarding flows and redemption trends? A: Joe Harvey, CEO: The market volatility post-quarter has created uncertainty, slowing decision-making. However, there's interest in U.S. real estate as investors anticipate the bottoming of the commercial real estate cycle. Additionally, listed infrastructure is gaining interest due to its less economic sensitivity. Surprisingly, there have been outflows in preferred stock strategies, possibly due to past regional banking crises and more fixed income choices. Despite this, our preferred portfolios have performed well. Q: What are the second-order impacts of tariffs on your strategy areas, particularly listed real infrastructure? A: John Chay, President and CIO: The impacts are more indirect, affecting economic growth, interest rates, and inflation. We expect slower economic growth and higher inflation. Infrastructure stands out as a stagflationary strategy, remaining positive despite market conditions. Natural resource equities may face more cyclical impacts, while real estate and infrastructure are less affected. Q: Is there a difference in selling active ETFs versus open-end funds, and what are your expectations for flow levels? A: Joe Harvey, CEO: The sales process involves educating advisors on asset classes and portfolio enhancement. Initial investors in ETFs are primarily RIAs, unlike wirehouses. The strategy focuses on core allocations rather than thematic approaches. While it's early, we've seen interest from RIAs who exclusively use ETFs, validating our launch. We expect some swapping from open-end funds to ETFs, but it's too early to quantify flow levels. Q: Regarding your pipeline, do you think this quarter's low level is an anomaly, or could it persist? A: Joe Harvey, CEO: We have good activity levels, but need to convert them into mandates. Historically, our pipeline has been strong, and we're focused on driving it. The institutional market has faced portfolio stresses due to high private allocations and interest rate changes, but we believe we're moving past this phase. We see a positive future for real asset allocations and are working to make it happen. Q: Could you elaborate on your plans for innovation and potential dislocation opportunities? A: Joe Harvey, CEO: Innovation could involve a second round of ETFs or inorganic growth. We're exploring strategies for future growth, considering partnerships or acquisitions, especially as more small asset managers seek access to the wealth channel. Our strong market position in wealth is well-known, and we're open to opportunities that align with our criteria. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
08-02-2025
- Business
- Yahoo
Asset Manager Cohen Steers Enters ETF Space With 3 Funds
New York-based Cohen & Steers Inc. (CNS) has joined the exchange-traded fund space with three actively managed funds starting this week, and the $85.8 billion asset manager indicated that it will be committing more resources to these types of products. The ETF debut dovetails with the portfolio management expertise of the 39-year-old firm that also manages 10 mutual funds, nine closed-end funds along with separate accounts, and private real estate portfolios. The Cohen & Steers Real Estate Active ETF (CSRE) and the Cohen & Steers Preferred and Income Opportunities Active ETF (CSPF) will each reflect the firm's flagship mutual fund strategies. The Cohen & Steers Natural Resources Active ETF (CSNR) represents the first time the firm has offered exposure to natural resources. 'Our natural resources ETF is a new capability for us, marking the first 1940 Act wealth-oriented exposure to natural resources in a standalone product,' said Daniel Noonan, executive vice president and head of wealth management. Noonan, who joined Cohen & Steers in June after 13 years at State Street Global Advisors and also leading the active ETF business at Pimco, said the focus on ETFs 'is one of the things that attracted me to this firm.' In 2014, Cohen & Steers applied to the Securities and Exchange Commission for approval to introduce a nontransparent active ETF at a time when the industry considered the structure a gateway for active mutual fund managers to enter the ETF space. While Cohen & Steers never introduced a nontransparent version of its active management capabilities, Noonan said the company did not stop focusing on ETFs. 'Over the past 10-plus years Cohen & Steers has been evaluating ways to introduce ETFs,' he said. 'As the industry has evolved, transparency has become the industry standard.' Cohen & Steers has not yet joined dozens of other fund complexes in applying for permission to launch mutual fund ETF share classes, and none of the first three ETFs are clones or conversions of existing mutual funds, but Noonan confirmed that the ETF space is a big focus at the firm. Last fall, Cohen & Steers hired Griffin Frank as head of ETF Capital Markets from T. Rowe Price Group Inc. (TROW). And, just this week, the company hired Alex Berg as the new head of ETF sales from State Street Global Advisors. 'We are hiring industry veterans,' Noonan said. Cohen & Steers is just the latest of the legacy mutual fund companies to find their way into the ETF space. Over the past few months Lazard Asset Management, Thornburg Investment Management, and MFS Investment Management have made similar | © Copyright 2025 All rights reserved
