Improved Flows and Market Gains Set Up Cohen & Steers To End 2023 in Much Better Shape

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 near to medium term. The company closed the June quarter with $80.4 billion in managed assets, split among U.S. real estate (45% of total assets under management), global/international real estate (19%), global listed infrastructure (11%), preferred securities (23%), and other offerings. Market losses have had a bigger negative impact on AUM since the start of 2022, with Cohen & Steers experiencing a 17.3% decline in managed assets due to market losses the past six calendar quarters. This was, however, better market-related performance than the FTSE Nareit All Equity TR Index (down 22.7%) and the Morningstar Global Markets REIT TR Index (down 23.4%).