Cohen & Steers Inc · NYSE:CNS
Cohen & Steers — Q2 2020 Earnings Presentation
18 slides from Cohen & Steers's earnings presentation, Sep 18, 2020
Slide 1: Cohen & Steers: Q2 2020 Earnings Presentation
Cohen & Steers: Q2 2020 Earnings Presentation
Slide 2: Summary of Second Quarter 2020 Results
Summary of Second Quarter 2020 Results Assets Under • June 30, 2020 AUM was $66.3 billion versus $57.4 billion at March 31, 2020 Management • Average AUM was $62.2 billion for Q2 2020 versus $69.0 billion for Q1 2020 • Net inflows of $3.4 billion in Q2 2020 versus net inflows of $1.2 billion in Q1 2
Slide 3: Financial Results, as adjusted
Financial Results, as adjusted $ in millions, except earnings per share and percentages $101.8 $104.9 $109.8 $105.8 $94.0 Revenue Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 $62.9 $64.1 $62.5 $65.4 $58.6 Expenses Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Diluted $0.62 $0.65 $0.74 $0.61 $0.54 Earnings per
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 $101.8 $104.9 $109.8 $105.8 $94.0 $0.7 $0.5 $0.8 $0.5 $8.0 $7.7 $7.8 $7.4 $0.5 $20.7 $6.9 $20.7 $19.6 $20.0 $17.5 $29.3 $27.9 $27.4 $27.5 $24.5 $48.4 $51.1 $49.8 $46.4 $4
Slide 5: Expenses, as adjusted
Expenses, as adjusted $ in millions Employee Compensation and Benefits Distribution and Service Fees General and Administrative Depreciation and Amortization $62.9 $64.1 $62.5 $65.4 $58.6 $1.1 $1.2 $1.1 $1.1 $1.2 $11.4 $11.5 $11.3 $12.4 $10.5 $14.1 $14.1 $14.2 $14.4 $12.5 $36.4 $37.5 $38.6 $34.6 $34
Slide 6: Assets Under Management
Assets Under Management $ in billions Ending AUM Avg. AUM $71.0 $68.6 $69.0 $66.6 $62.2 $70.8 $72.2 $66.6 $66.3 $57.4 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 6 Amounts in Q2 2019 have been recast to include model-based portfolios which were previously classified as assets under advisement.
Slide 7: Assets Under Management Across Vehicle, Strategy, and Client Domicile
Assets Under Management Across Vehicle, Strategy, and Client Domicile Subadvisory ex. Japan Other 2.5% APAC ex. Japan 4.7% 7.3% Global Listed EMEA 5.7% Infrastructure 10.2% Closed-end Funds 12.9% Japan Global/International 13.9% Japan Subadvisory Real Estate 19.1% 13.2% Advisory Preferred Securities
Slide 8: Total Firm Net Flows
Total Firm Net Flows $ in billions Inflows Outflows Net Flows Organic Growth/ (0.4%) 6.7% 9.0% 6.6% 24.0% (Decay) $7.1 $7.0 $3.4 $4.0 $4.6 $4.0 $1.6 $1.1 $1.2 ($0.1) ($2.8) ($3.0) ($4.0) ($3.6) ($5.9) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Totals may not foot due to rounding. 8 Amounts in Q2 2019 h
Slide 9: Net Flows by Investment Vehicle
Net Flows by Investment Vehicle Inflows $ in billions Outflows Net Flows Open-end Funds Organic Growth/ 17.7% 8.9% 20.8% 0.9% 33.4% (Decay) $5.2 $4.4 $3.6 $3.0 $2.8 $2.0 $1.6 $1.2 $0.6 $0.1 ($1.8) ($2.2) ($2.0) ($3.1) ($4.3) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Advisory Organic Growth/ 1.9% 12.4%
Slide 10: Net Flows by Investment Vehicle
Net Flows by Investment Vehicle Inflows $ in billions Outflows Net Flows Subadvisory ex. Japan Organic Growth/ (64.8%) 4.4% (20.0%) (12.1%) 20.3% (Decay) $0.4 $0.3 $0.1 $0.2 $0.2 $0.3 $0.1 ($0.2) ($0.3) ($0.2) ($0.2) ($0.4) ($0.4) ($1.1) ($1.2) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Japan Subadviso
Slide 11: Net Flows by Investment Strategy
Net Flows by Investment Strategy Inflows $ in billions Outflows Net Flows U.S. Real Estate Organic Growth/ 5.6% 1.6% 13.4% 7.2% 35.1% (Decay) $3.6 $2.5 $2.1 $2.4 $1.9 $1.6 $1.0 $0.4 $0.6 $0.1 ($1.5) ($1.5) ($1.4) ($1.5) ($1.9) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Preferred Securities Organic Grow
Slide 12: Net Flows by Investment Strategy
Net Flows by Investment Strategy Inflows $ in billions Outflows Net Flows Global/International Real Estate Organic Growth/ (25.8%) 10.5% 4.3% 25.3% 22.9% (Decay) $1.7 $1.1 $0.7 $0.6 $0.8 $0.6 $0.3 $0.6 $0.1 ($0.3) ($0.5) ($0.5) ($0.8) ($0.9) ($1.4) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Global List
Slide 13: Distributions by Investment Vehicle
Distributions by Investment Vehicle $ in billions Open-end Funds Japan Subadvisory ($0.2) ($0.2) ($0.6) ($0.3) ($0.3) ($0.3) ($0.3) ($0.3) ($0.8) ($0.9) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Closed-end Funds Total ($0.6) ($0.7) ($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 6/30/2020 Not Rated 1 or 2 Star 3 Star 4 or 5 Star 1-Year 96% 95% 75% 1% 1% 6/30/2018 6/30/2019 6/30/2020 3-Year 93% 97% 84% 6/30/2018 6/30/2019 6/30/2020 5-Year 98% 98% 99% 6/
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 $218.4 $246.1 $204.3 $140.3 $191.9 $68.1 $66.3 $53.1 $53.8 $49.7 $49.9 $49.8 $47.4 $50.0 $128.3 $49.9 $102.1 $101.4 $88.1 $43.0 June 30, 2019 September 30, 2019 December 31, 2019 March
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, 2019 2019 2019 2020 2020
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