Cohen & Steers Inc · NYSE:CNS
Cohen & Steers — Q4 2019 Earnings Presentation
18 slides from Cohen & Steers's earnings presentation, 2020
Slide 1: Cohen & Steers: Q4 2019 and Full Year 2019 Earnings Presentation
Cohen & Steers: Q4 2019 and Full Year 2019 Earnings Presentation
Slide 2: Summary of Fourth Quarter and Full Year 2019 Results
Summary of Fourth Quarter and Full Year 2019 Results 4th Quarter 2019 Full Year 2019 • December 31, 2019 AUM was $72.2 billion • December 31, 2019 AUM was $72.2 billion Assets Under versus $70.8 billion at September 30, 2019 versus $57.9 billion at December 31, 2018 Management (1) • Average AUM was
Slide 3: Financial Results, as adjusted
Financial Results, as adjusted $ in millions, except earnings per share and percentages $101.8 $104.9 $109.8 $93.6 $93.9 Revenue Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 $59.2 $58.2 $62.9 $64.1 $62.5 Expenses Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Diluted $0.62 $0.65 $0.74 $0.56 $0.58 Earnings per S
Slide 4: Revenue, as adjusted
Revenue, as adjusted $ in millions Open-end Institutional Closed-end Distribution and Other Fund Fees Fees Fund Fees Service Fees $93.6 $93.9 $101.8 $104.9 $109.8 $0.7 $0.5 $0.5 $8.0 $7.7 $0.5 $0.4 $7.4 $7.0 $7.0 $20.7 $20.7 $20.0 $19.1 $19.1 $29.3 $27.4 $27.5 $25.5 $26.1 $48.4 $51.1 $46.4 $41.5 $41
Slide 5: Expenses, as adjusted
Expenses, as adjusted $ in millions Employee Compensation and Benefits Distribution and Service Fees General and Administrative Depreciation and Amortization $59.2 $58.2 $62.9 $64.1 $62.5 $1.1 $1.1 $1.1 $1.1 $1.1 $11.3 $11.4 $12.4 $12.0 $11.0 $14.2 $14.1 $14.4 $11.6 $12.5 $36.4 $37.5 $34.5 $33.6 $34
Slide 6: Assets Under Management
Assets Under Management $ in billions Ending AUM Avg. AUM $71.0 $68.6 $66.6 $62.8 $60.8 $70.8 $72.2 $66.1 $66.6 $57.9 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 6 Amounts in periods prior to Q3 2019 have been recast to include model-based portfolios which were previously classified as assets under advi
Slide 7: Assets Under Management Across Vehicle, Strategy, and Client Domicile
Assets Under Management Across Vehicle, Strategy, and Client Domicile Subadvisory ex. Japan Other 2.8% EMEA 4.3% 8.1% Global Listed APAC ex. Japan 4.9% Infrastructure 11.2% Closed-end Funds Japan 13.4% 15.0% Global/International Japan Subadvisory Real Estate 18.7% 14.3% Advisory Preferred Securities
Slide 8: Total Firm Net Flows
Total Firm Net Flows $ in billions Inflows Outflows Net Flows Organic Growth/ (7.4%) 7.5% (0.4%) 6.7% 9.0% (Decay) $4.0 $4.6 $3.2 $4.0 $4.0 $1.6 $1.1 $1.1 ($0.1) ($1.2) ($2.9) ($2.8) ($3.0) ($4.0) ($4.4) Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Totals may not foot due to rounding. 8 Amounts in period
Slide 9: Net Flows by Investment Vehicle
Net Flows by Investment Vehicle Inflows $ in billions Outflows Net Flows Open-end Funds Organic Growth/ (15.9%) 25.6% 17.7% 8.9% 20.8% (Decay) $3.6 $3.1 $3.0 $2.8 $2.3 $1.4 $1.6 $1.2 $0.6 ($1.0) ($1.7) ($1.8) ($2.2) ($2.0) ($3.3) Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Advisory Organic Growth/ 9.6%
Slide 10: Net Flows by Investment Vehicle
Net Flows by Investment Vehicle Inflows $ in billions Outflows Net Flows Subadvisory ex. Japan Organic Growth/ (11.5%) (3.1%) (64.8%) 4.4% (20.0%) (Decay) $0.5 $0.3 $0.2 $0.1 $0.1 $0.1 ($0.0) ($0.2) ($0.2) ($0.3) ($0.3) ($0.6) ($0.4) ($1.1) ($1.2) Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Japan Subadv
Slide 11: Net Flows by Investment Strategy
Net Flows by Investment Strategy Inflows $ in billions Outflows Net Flows U.S. Real Estate Organic Growth/ (4.3%) 6.1% 5.6% 1.6% 13.4% (Decay) $2.4 $1.9 $1.3 $1.6 $1.0 $1.1 $0.4 $0.4 $0.1 ($0.3) ($1.0) ($1.4) ($1.5) ($1.5) ($1.4) Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Preferred Securities Organic G
Slide 12: Net Flows by Investment Strategy
Net Flows by Investment Strategy Inflows $ in billions Outflows Net Flows Global/International Real Estate Organic Growth/ (5.7%) 7.1% (25.8%) 10.5% 4.3% (Decay) $0.6 $0.7 $0.6 $0.7 $0.6 $0.2 $0.3 $0.1 ($0.2) ($0.3) ($0.5) ($0.5) ($0.8) ($0.8) ($1.4) Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Global Li
Slide 13: Distributions by Investment Vehicle
Distributions by Investment Vehicle $ in billions Open-end Funds Japan Subadvisory ($0.2) ($0.2) ($0.4) ($0.3) ($0.3) ($0.3) ($0.8) ($0.4) ($0.4) ($0.9) Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Closed-end Funds Total ($0.7) ($0.6) ($0.8) ($0.1) ($0.1) ($0.1) ($
Slide 14: Investment Performance
Investment Performance % of U.S. Open-End Fund AUM by Morningstar Rating2 % of Total AUM in Outperforming Strategies1 As of 12/31/2019 Not Rated 1 or 2 Star 3 Star 4 or 5 Star 1-Year 95% 94% 96% 12/31/2017 12/31/2018 12/31/2019 1% 7% 3% 3-Year 95% 97% 97% 12/31/2017 12/31/2018 12/31/2019 5-Year 100%
Slide 15: Cash, Cash Equivalents, U.S. Treasurys and Seed Investments
Cash, Cash Equivalents, U.S. Treasurys and Seed Investments $ in millions Cash U.S. Treasurys 1 Seed Investments 2 $213.2 $183.5 $218.4 $246.1 $204.3 $68.1 $66.3 $70.8 $53.1 $49.7 $77.3 $49.9 $49.8 $49.7 $49.8 $128.3 $92.7 $102.1 $101.4 $56.4 December 31, 2018 March 31, 2019 June 30, 2019 September
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation $ in thousands, except per share data Reconciliation of U.S. GAAP Net Income Attributable to Common Stockholders and U.S. GAAP Earnings per Share to Net Income Attributable to Common Stockholders, As Adjusted, and Earnings per Share, As Adjusted Three Months Ended Year Ended
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation $ in thousands, except percentages Reconciliation of U.S. GAAP Operating Income and U.S. GAAP Operating Margin to Operating Income, As Adjusted and Operating Margin, As Adjusted Three Months Ended Year Ended December 31, March 31, June 30, September 30, December 31, December
Slide 18: Legal Disclosures
Legal Disclosures This presentation and other statements that Cohen & Steers may make may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect management's cur