Cohen & Steers Inc · NYSE:CNS
Cohen & Steers — Q2 2018 Earnings Presentation
18 slides from Cohen & Steers's earnings presentation, 2018
Slide 1: Cohen & Steers: Q2 2018 Earnings Presentation
Cohen & Steers: Q2 2018 Earnings Presentation
Slide 2: Summary of Second Quarter
Summary of Second Quarter Assets Under • June 30, 2018 AUM was $60.2 billion versus $58.5 billion at March 31, 2018 Management • Average AUM was $58.7 billion for Q2 2018 versus $59.2 billion for Q1 2018 • Net inflows of $180 million in Q2 2018 versus net outflows of $95 million in Q1 2018 Flows • N
Slide 3: Financial Results, as adjusted
Financial Results, as adjusted $ in millions, except earnings per share and percentages $92.6 $96.7 $99.3 $94.4 $94.2 Revenue Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 $55.2 $56.2 $58.1 $56.1 $57.8 Expenses Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Diluted $0.62 $0.50 $0.55 $0.55 $0.59 Earnings per Shar
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 $92.6 $96.7 $99.3 $94.4 $94.2 $2.9 $2.7 $2.8 $2.6 $2.7 $7.9 $7.8 $7.4 $7.7 $7.3 $20.4 $19.9 $19.2 $19.1 $19.5 $25.6 $26.0 $25.2 $24.8 $24.4 $38.2 $
Slide 5: Expenses, as adjusted
Expenses, as adjusted $ in millions Employee Compensation and Benefits Distribution and Service Fees General and Administrative Depreciation and Amortization $55.2 $56.2 $58.1 $56.1 $57.8 $1.1 $1.2 $1.0 $1.1 $1.1 $11.2 $11.6 $10.2 $10.6 $11.1 $13.0 $13.6 $12.4 $13.6 $12.8 $30.4 $31.6 $32.2 $31.2 $32
Slide 6: Assets Under Management
Assets Under Management $ in billions Ending AUM Avg. AUM $61.2 $62.0 $59.2 $59.7 $58.7 $60.4 $61.5 $62.1 $60.2 $58.5 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 6
Slide 7: Assets Under Management Across Vehicle, Strategy, and Client Domicile
Assets Under Management Across Vehicle, Strategy, and Client Domicile Subadvisory ex. Japan Other 4.7% APAC ex. Japan 5.0% 10.4% Global Listed EMEA 5.4% Infrastructure 11.5% Closed-end Fund Japan 15.1% 16.9% Global/International Real Estate 19.4% Japan Subadvisory 16.4% Preferred Securities Advisory
Slide 8: Total Firm Net Flows
Total Firm Net Flows $ in billions Inflows Outflows Net Flows Organic Growth/ 9.1% 9.2% 1.5% (0.6%) 1.2% (Decay) $3.5 $4.0 $3.3 $3.1 $1.3 $1.4 $2.9 $0.2 $0.2 ($0.1) ($2.1) ($2.6) ($2.8) ($2.7) ($3.4) Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 8 Totals may not foot due to rounding.
Slide 9: Net Flows by Investment Vehicle
Net Flows by Investment Vehicle Inflows $ in billions Outflows Net Flows Open-end Funds Organic Growth/ 17.5% 16.0% 14.4% (0.1%) 2.3% (Decay) $2.4 $2.7 $2.5 $2.3 $2.1 $0.9 $0.9 $0.8 ($0.0) $0.1 ($1.5) ($1.4) ($1.8) ($2.0) ($2.5) Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Advisory Organic Growth/ 5.2% 4
Slide 10: Net Flows by Investment Vehicle
Net Flows by Investment Vehicle Inflows $ in billions Outflows Net Flows Subadvisory ex. Japan Organic Growth/ (0.5%) (13.8%) 4.0% (2.1%) (16.4%) (Decay) $0.2 $0.3 $0.2 $0.2 $0.2 $0.1 ($0.0) ($0.0) ($0.2) ($0.2) ($0.2) ($0.3) ($0.3) ($0.4) ($0.4) Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Japan Subadvi
Slide 11: Net Flows by Investment Strategy
Net Flows by Investment Strategy Inflows $ in billions Outflows Net Flows U.S. Real Estate Organic Growth/ 6.6% 1.2% (5.4%) (4.2%) (1.2%) (Decay) $1.6 $1.5 $1.3 $1.2 $1.0 $0.5 $0.1 ($0.1) ($0.4) ($0.3) ($1.1) ($1.1) ($1.4) ($1.5) ($1.6) Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Preferred Securities Or
Slide 12: Net Flows by Investment Strategy
Net Flows by Investment Strategy Inflows $ in billions Outflows Net Flows Global/International Real Estate Organic Growth/ (4.8%) 5.3% 9.1% 6.5% 14.5% (Decay) $0.7 $0.6 $0.5 $0.4 $0.4 $0.2 $0.2 $0.1 $0.2 ($0.1) ($0.2) ($0.3) ($0.3) ($0.3) ($0.3) Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Global Listed
Slide 13: Distributions by Investment Vehicle
Distributions by Investment Vehicle $ in billions Open-end Funds Japan Subadvisory ($0.2) ($0.2) ($0.3) ($0.3) ($0.6) ($0.6) ($0.6) ($0.7) ($0.6) ($0.8) Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Closed-end Funds Total ($1.0) ($0.9) ($1.0) ($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 6/30/2018 Not Rated 1 or 2 Star 3 Star 4 or 5 Star 1-Year 92% 96% 61% 6/30/2016 6/30/2017 6/30/2018 6% 1% 3-Year 99% 93% 93% 8% 6/30/2016 6/30/2017 6/30/2018 5-Year 89% 98% 52%
Slide 15: Cash, Cash Equivalents and Seed Investments
Cash, Cash Equivalents and Seed Investments $ in millions Non-U.S. Cash U.S. Cash Seed Investments 1 $241.6 $260.9 $256.9 $231.6 $262.8 $62.1 $69.1 $63.4 $63.2 $63.0 $117.3 $109.1 $115.3 $100.9 $85.1 $77.6 $81.6 $84.4 $83.6 $78.4 June 30, 2017 September 30, 2017 December 31, 2017 March 31, 2018 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 June 30, Se
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 June 30, September 30, December 31, March 31, June 30, 2017 2017 2017 2018 2018
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