Cohen & Steers Inc · NYSE:CNS
Cohen & Steers — Q4 2017 Earnings Presentation
18 slides from Cohen & Steers's earnings presentation, February 2018
Slide 1: Cohen & Steers: Q4 2017 Earnings Presentation
Cohen & Steers: Q4 2017 Earnings Presentation
Slide 2: Summary of Fourth Quarter and Full Year 2017 Results
Summary of Fourth Quarter and Full Year 2017 Results 4th Quarter 2017 Full Year 2017 • December 31, 2017 AUM was $62.1 billion • December 31, 2017 AUM was $62.1 billion Assets versus $61.5 billion at September 30, 2017 versus $57.2 billion at December 31, 2016 Under Management • Average AUM was $62.
Slide 3: Financial Results, as adjusted
Financial Results, as adjusted $ in millions, except earnings per share $92.9 $96.5 $99.4 Revenue $89.5 $89.7 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 $53.5 $54.2 $55.4 $56.0 $58.2 Expenses Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Diluted $0.48 $0.47 $0.50 $0.55 $0.55 Earnings per Share Q4 2016 Q1 201
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 $89.5 $89.7 $92.9 $96.5 $99.4 $2.9 $2.7 $2.8 $4.9 $2.8 $2.7 $5.1 $5.1 $5.2 $5.0 $20.5 $20.0 $19.6 $19.1 $19.0 $26.4 $26.0 $24.9 $23.3 $24.6 $42.7 $
Slide 5: Expenses, as adjusted
Expenses, as adjusted $ in millions Employee Compensation & Benefits General & Administrative Distribution and Service Fees Depreciation and Amortization $53.5 $54.2 $55.4 $56.0 $58.2 $1.5 $1.8 $1.7 $2.0 $2.1 $10.1 $10.2 $9.6 $10.0 $9.8 $14.4 $13.1 $13.0 $13.0 $13.2 $30.4 $31.6 $32.2 $28.3 $29.4 Q4
Slide 6: Assets Under Management
Assets Under Management $ in billions Ending AUM Avg. AUM $61.2 $62.0 $59.7 $57.4 $58.3 $60.4 $61.5 $62.1 $57.2 $58.5 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 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 5.6% APAC ex. Japan 4.7% 10.6% Europe 5.3% Global Listed Infrastructure 11.2% Closed-end Fund Japan 15.1% 18.9% Global/International Real Estate 17.9% Advisory 18.3% Preferred Securities 21.0% Japan Sub
Slide 8: Total Firm Net Flows
Total Firm Net Flows $ in billions Inflows Outflows Net Flows Organic 4.7% 6.3% 9.1% 9.2% 1.5% Growth $4.0 $4.0 $3.5 $3.2 $3.1 $1.3 $1.4 $0.9 $0.7 $0.2 ($2.3) ($2.1) ($2.6) ($2.8) ($3.3) Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 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/ 1.0% 12.2% 17.5% 16.0% 14.4% (Decay) $2.6 $2.4 $2.7 $2.3 $2.3 $0.9 $0.9 $0.8 $0.6 $0.1 ($1.5) ($1.4) ($1.7) ($1.8) ($2.6) Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Advisory Organic Growth/ 22.5% (1.
Slide 10: Net Flows by Investment Vehicle
Net Flows by Investment Vehicle Inflows $ in billions Outflows Net Flows Subadvisory ex. Japan Organic Growth/ 2.6% 2.9% (0.5%) (13.8%) 4.0% (Decay) $0.3 $0.2 $0.2 $0.2 $0.2 $0.1 $0.0 $0.0 ($0.0) ($0.1) ($0.2) ($0.2) ($0.3) ($0.2) ($0.4) Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Japan Subadvisory Orga
Slide 11: Net Flows by Investment Strategy
Net Flows by Investment Strategy Inflows $ in billions Outflows Net Flows U.S. Real Estate Organic Growth/ 4.2% 4.0% 6.6% 1.2% (5.4%) (Decay) $1.9 $1.6 $1.5 $1.4 $1.2 $0.3 $0.5 $0.3 $0.1 ($0.4) ($1.2) ($1.1) ($1.6) ($1.4) ($1.5) Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Preferred Securities Organic Gr
Slide 12: Net Flows by Investment Strategy
Net Flows by Investment Strategy Inflows $ in billions Outflows Net Flows Global/International Real Estate Organic Growth/ 2.0% 8.2% (4.8%) 5.3% 9.1% (Decay) $0.6 $0.4 $0.4 $0.4 $0.2 $0.2 $0.2 $0.1 $0.0 ($0.2) ($0.1) ($0.2) ($0.3) ($0.3) ($0.4) Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Global Listed I
Slide 13: Distributions by Investment Vehicle
Distributions by Investment Vehicle $ in billions Open-end Funds Japan Subadvisory ($0.2) ($0.2) ($0.3) ($0.6) ($0.6) ($0.7) ($0.8) ($0.8) ($0.8) ($0.9) Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Closed-end Funds Total ($1.1) ($1.0) ($0.1) ($0.1) ($0.1) ($1.2) ($
Slide 14: Investment Performance
Investment Performance % of U.S. Open-End Fund AUM by Morningstar Rating2 % of Total AUM in Outperforming Strategies1 As of 12/31/2017 Not Rated 1 or 2 Star 3 Star 4 or 5 Star 1-Year 88% 95% 44% 12/31/2015 12/31/2016 12/31/2017 4% 4% 3-Year 100% 96% 94% 4% 12/31/2015 12/31/2016 12/31/2017 5-Year 100
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 $236.3 $215.3 $241.6 $260.9 $256.9 $62.1 $63.4 $53.1 $63.2 $58.6 $93.4 $117.3 $109.1 $100.9 $68.5 $89.8 $88.2 $81.6 $84.4 $77.6 December 31, 2016 March 31, 2017 June 30, 2017 September 30, 2017 Decem
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 Years 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 Years 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