Analyst Note| Greggory Warren, CFA |
There was little in narrow-moat-rated Cohen & Steers' third-quarter results that would alter our long-term view of the firm, and we are leaving our $60 per share fair value estimate in place. Cohen & Steers closed out the September quarter with $70.5 billion in total assets under management, up 6.3% sequentially but still down 0.5% year over year. Net inflows of $2.3 billion continued the trend of positive flows that started in the third quarter of 2019 but were down from a strong $3.4 billion during the June quarter. While we continue to expect flows to be constrained at times during 2020-21, our forecast for annual organic AUM growth in a mid- to high-single-digit range over the next three to five years remains in place, driven by demand for real estate funds (which are carrying higher yields than most bonds and money market funds).