Cohen & Steers Will Face Flow Pressures as Long as Short-Term Interest Rates Remain Elevated

While the combination of rising interest rates and an equity market selloff has had a negative impact on Cohen & Steers' level of managed assets, we remain cautiously optimistic about the firm over the long run. The company closed out the first quarter of 2023 with $79.9 billion in managed assets, split among its U.S. real estate (45% of total AUM), global/international real estate (19%), global listed infrastructure (11%), and preferred securities (23%) and other offerings. Market losses have so far had a bigger negative impact on AUM than outflows, with Cohen & Steers experiencing a 19.0% market loss on its managed assets since the start of 2022. This was, however, better performance than both the FTSE NAREIT All Equity TR Index (down 24.0%) and the Morningstar Global Markets REIT TR Index (down 24.5%).