Cohen & Steers Inc · NYSE:CNS
Cohen & Steers — Q3 2019 Earnings Presentation
18 slides from Cohen & Steers's earnings presentation, Dec 22, 2019
Slide 1: Cohen & Steers: Q3 2019 Earnings Presentation
Cohen & Steers: Q3 2019 Earnings Presentation
Slide 2: Summary of Third Quarter 2019 Results
Summary of Third Quarter 2019 Results Assets Under • September 30, 2019 AUM was $70.8 billion versus $66.6 billion at June 30, 2019 Management (1) • Average AUM was $68.6 billion for Q3 2019 versus $66.6 billion for Q2 2019 • Net inflows of $1.1 billion in Q3 2019 versus net outflows of $58 million
Slide 3: Financial Results, as adjusted
Financial Results, as adjusted $ in millions, except earnings per share and percentages $98.2 $101.8 $104.9 $93.6 $93.9 Revenue Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 $58.7 $59.2 $58.2 $62.9 $64.1 Expenses Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Diluted $0.64 $0.62 $0.65 $0.56 $0.58 Earnings per Sh
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 $98.2 $93.6 $93.9 $101.8 $104.9 $0.5 $0.5 $0.5 $7.7 $0.5 $0.4 $7.4 $7.5 $7.0 $7.0 $20.7 $20.0 $19.9 $19.1 $19.1 $27.4 $27.5 $26.9 $25.5 $26.1 $46.4 $48.4 $43.4 $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 $58.7 $59.2 $58.2 $62.9 $64.1 $1.1 $1.1 $1.1 $1.1 $1.1 $11.3 $11.4 $11.3 $12.0 $11.0 $14.2 $14.1 $13.2 $11.6 $12.5 $36.4 $37.5 $33.1 $34.5 $33
Slide 6: Assets Under Management
Assets Under Management $ in billions Ending AUM Avg. AUM $68.6 $66.6 $63.7 $62.8 $60.8 $70.8 $66.1 $66.6 $63.4 $57.9 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 6 Prior period amounts have been recast to include model-based portfolios which were previously classified as assets under advisement.
Slide 7: Assets Under Management
Assets Under Management Across Vehicle, Strategy, and Client Domicile Subadvisory ex. Japan Other 3.1% EMEA 4.3% 8.5% Global Listed APAC ex. Japan 5.1% Infrastructure 11.0% Closed-end Funds Japan 13.7% 15.0% Global/International Real Estate 18.6% Japan Subadvisory 14.5% Preferred Securities Advisory
Slide 8: Total Firm Net Flows
Total Firm Net Flows $ in billions Inflows Outflows Net Flows Organic Growth/ (0.5%) (7.4%) 7.5% (0.4%) 6.7% (Decay) $4.0 $4.0 $4.0 $2.4 $3.2 $1.1 $1.1 ($0.1) ($0.1) ($2.5) ($1.2) ($2.9) ($2.8) ($4.0) ($4.4) Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 8 Totals may not foot due to rounding. Prior period
Slide 9: Net Flows by Investment Vehicle
Net Flows by Investment Vehicle Inflows $ in billions Outflows Net Flows Open-end Funds Organic Growth/ 6.9% (15.9%) 25.6% 17.7% 8.9% (Decay) $3.1 $3.0 $2.8 $2.3 $1.4 $2.0 $1.2 $0.4 $0.6 ($1.6) ($1.0) ($1.7) ($1.8) ($2.2) ($3.3) Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Advisory Organic Growth/ 4.8% 9
Slide 10: Net Flows by Investment Vehicle
Net Flows by Investment Vehicle Inflows $ in billions Outflows Net Flows Subadvisory ex. Japan Organic Growth/ (20.1%) (11.5%) (3.1%) (64.8%) 4.4% (Decay) $0.5 $0.3 $0.1 $0.0 $0.2 $0.1 ($0.0) ($0.2) ($0.3) ($0.2) ($0.3) ($0.6) ($0.4) ($1.1) ($1.2) Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 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/ (0.2%) (4.3%) 6.1% 5.6% 1.6% (Decay) $1.9 $1.6 $1.3 $1.0 $1.1 $0.4 $0.4 ($0.0) $0.1 ($0.3) ($1.0) ($1.0) ($1.4) ($1.5) ($1.5) Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Preferred Securities Organi
Slide 12: Net Flows by Investment Strategy
Net Flows by Investment Strategy Inflows $ in billions Outflows Net Flows Global/International Real Estate Organic Growth/ (3.3%) (5.7%) 7.1% (25.8%) 10.5% (Decay) $0.6 $0.7 $0.7 $0.2 $0.6 $0.2 $0.3 ($0.1) ($0.2) ($0.3) ($0.5) ($0.3) ($0.8) ($0.8) ($1.4) Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Globa
Slide 13: Distributions by Investment Vehicle
Distributions by Investment Vehicle $ in billions Open-end Funds Japan Subadvisory ($0.2) ($0.2) ($0.2) ($0.4) ($0.3) ($0.3) ($0.4) ($0.4) ($0.8) ($0.4) Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Closed-end Funds Total ($0.7) ($0.6) ($0.8) ($0.8) ($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 9/30/2019 1 or 2 Star 3 Star 4 or 5 Star 1-Year 98% 96% 72% 9/30/2017 9/30/2018 9/30/2019 1% 11% 3-Year 94% 98% 98% 9/30/2017 9/30/2018 9/30/2019 5-Year 81% 100% 98% 9/30/2017
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 $290.7 $213.2 $183.5 $218.4 $246.1 $76.7 $68.1 $49.6 $66.3 $70.8 $49.7 $77.3 $49.9 $49.7 $164.5 $49.8 $128.3 $92.7 $102.1 $56.4 September 30, 2018 December 31, 2018 March 31, 2019 June
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 September 3
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 September 30, December 31, March 31, June 30, September 30, 2018 2018 2019 2019
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