Cohen & Steers Inc · NYSE:CNS
Cohen & Steers — Q3 2016 Earnings Presentation
15 slides from Cohen & Steers's earnings presentation, Oct 19, 2016
Slide 1: Cohen & Steers: Q3 2016 Earnings Presentation
Cohen & Steers: Q3 2016 Earnings Presentation
Slide 2: Summary of Third Quarter Results
Summary of Third Quarter Results Assets Under • September 30, 2016 AUM was $60.5 billion versus $58.7 billion at June 30, 2016 Management • Average AUM was a record $60.5 billion for Q3 2016 versus $55.9 billion for Q2 2016 • Net inflows of $2.2 billion in Q3 2016 versus $2.3 billion in Q2 2016 Flow
Slide 3: Financial Results
Financial Results $ in millions, except earnings per share $94.4 Revenue, $81.7 $86.4 $79.7 $79.7 as adjusted Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 $52.2 $57.1 Expenses, $48.2 $51.3 $49.4 as adjusted Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Diluted Earnings per $0.46 $0.51 $0.42 $0.41 $0.41 Share,
Slide 4: Revenue, as adjusted
Revenue, as adjusted $ in millions Open-end Institutional Closed-end Distribution & Portfolio Consulting Fund Fees Fees Fund Fees Service Fees and Other $79.7 $81.7 $79.7 $86.4 $94.4 $3.0 $2.6 $5.3 $2.3 $4.7 $2.2 $2.4 $4.1 $20.1 $4.0 $4.2 $19.2 $19.6 $18.3 $20.0 $25.1 $23.5 $20.7 $21.5 $21.3 $40.9 $
Slide 5: Expenses, as adjusted
Expenses, as adjusted $ in millions Employee Compensation & Benefits General & Administrative Distribution and Service Fees Depreciation and Amortization $48.2 $51.3 $49.4 $52.2 $57.1 $2.0 $1.5 $1.7 $1.5 $1.9 $11.1 $9.0 $9.8 $8.6 $8.7 $13.1 $13.4 $12.5 $12.2 $12.7 $30.9 $27.4 $26.1 $28.3 $25.9 Q3 20
Slide 6: Assets Under Management
Assets Under Management $ in billions Ending AUM Avg. AUM $60.5 $55.9 $52.0 $51.6 $50.7 $58.7 $60.5 $55.1 $52.6 $49.7 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 6
Slide 7: Assets Under Management
Assets Under Management Across Vehicle, Strategy, and Client Domicile Subadvisory ex. Japan Other 4.8% APAC ex. Japan 4.5% 10.0% Global Listed Europe 4.6% Infrastructure 9.7% Advisory 14.8% Preferred Securities Japan 17.3% 24.8% Closed-end Funds 15.5% Global/International Real Estate 16.6% Japan Sub
Slide 8: Total Firm Net Flows
Total Firm Net Flows $ in billions Inflows Outflows Net Flows $4.0 $4.2 $3.8 $2.3 $2.2 $3.3 $1.5 $1.4 $2.1 $0.4 ($1.7) ($1.8) ($2.0) ($2.4) ($1.7) Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 8
Slide 9: Net Flows by Investment Vehicle
Net Flows by Investment Vehicle Inflows $ in billions Outflows Net Flows Open-end Funds Advisory $2.3 $2.4 $2.6 $0.7 $2.0 $0.6 $1.2 $0.2 $0.2 $0.2 ($1.3) ($1.3) ($1.2) ($1.3) ($0.0) ($1.7) ($0.1) ($0.3) ($0.3) ($0.3) Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Sub
Slide 10: Net Flows by Investment Strategy
Net Flows by Investment Strategy Inflows $ in billions Outflows Net Flows U.S. Real Estate Global/International Real Estate $2.1 $2.1 $0.8 $1.7 $1.7 $0.9 $0.2 $0.2 $0.2 $0.2 ($0.3) ($0.4) ($0.5) ($0.7) ($0.8) ($0.7) ($0.5) ($0.6) ($0.9) ($1.0) Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q3 2015 Q4 2015
Slide 11: 10-Year Investment Performance
Investment Performance % of U.S. Open-End Fund AUM by Morningstar Rating2 % of Total AUM in Outperforming Strategies1 As of 9/30/2016 Not Rated 1 or 2 Star 3 Star 4 or 5 Star 1-Year 99% 88% 50% 1% 2% 9/30/2014 9/30/2015 9/30/2016 3-Year 87% 98% 73% 16% 9/30/2014 9/30/2015 9/30/2016 5-Year 76% 75% 51
Slide 12: Cash, Cash Equivalents and Seed Investments
Cash, Cash Equivalents and Seed Investments $ in millions Non-U.S. Cash U.S. Cash Seed Investments $196.5 $202.1 $186.2 $207.1 $223.8 $60.6 $50.3 $59.4 $66.4 $63.2 $73.7 $62.7 $58.7 $53.2 $39.4 $83.5 $84.0 $83.6 $87.5 $89.4 September 30, 2015 December 31, 2015 March 31, 2016 June 30, 2016 September
Slide 13: Financial Reconciliation
Financial Reconciliation $ in thousands, except per share date and percentages Q3 Q4 Q1 Q2 Q3 2015(6) 2015(6) 2016 2016 2016 Revenue, U.S. GAAP $79,667 $81,671 $79,681 $86,373 $94,388 Investment advisory and administration fees (1) 19 39 56 29 30 Distribution and services fees (1) 1 1 1 1 1 Revenue,
Slide 14: Financial Reconciliation
Financial Reconciliation $ in thousands, except per share date and percentages Q3 Q4 Q1 Q2 Q3 2015(6) 2015(6) 2016 2016 2016 Net income attributable to common stockholders, U.S. GAAP $12,338 $12,384 $18,083 $24,808 $23,877 Investment advisory and administration fees (1) 19 39 56 29 30 Distribution a
Slide 15: 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