Analyst Note| Greggory Warren, CFA |
There was little in narrow-moat-rated Cohen & Steers' first-quarter results that would alter our long-term view, and we are leaving our $70 per share fair value estimate in place. Cohen & Steers closed out the March quarter with a record $87.0 billion in total assets under management, up 8.9% sequentially and 51.7% year over year, as the company lapped the steep COVID-19 sell-off in the first quarter of 2020. Net inflows of $3.8 billion during the March quarter continued the trend of positive flows that started during the third quarter of 2019, with a run rate of $2.2 billion in quarterly inflows on average over the past two years being the result. Driven by ongoing demand for real estate funds, which we expect will continue to carry higher yields than most bond and money market funds, we continue to forecast mid-single-digit organic AUM growth on average annually for Cohen & Steers during 2021-25, which should lead to mid- to high-single-digit growth in managed assets.