CNS

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Achieved the strongest net flow period since Q4 2021, marking the fifth consecutive quarter of organic growth driven by broad-based demand across all investment strategies. - Attributed the recent pressure on real assets to a 'real yield story' rather than inflation, noting that higher term premiums affect valuations across all asset classes, not just REITs. - Observed a significant turnaround in investment performance, with 74% of AUM outperforming in Q3 compared to 40% in Q2, led by a reversion to trend in US and global real estate. - Positioned the firm to benefit from a 'barbelled approach' where investors seek preferred securities for income and real assets for growth, diversification, and inflation protection. - Identified an early to mid-cycle recovery in listed real estate, supported by reduced new supply and growing demand that is expected to drive growth above historical norms. - Highlighted the strategic shift of listed infrastructure into a core allocation, fueled by secular investment needs in AI infrastructure, reindustrialization, and supply chain trends. - Anticipates 9% EBITDA growth for global listed infrastructure and 20% earnings growth for natural resource equities, significantly exceeding historical averages. - Planning the next phase of the ETF strategy, which may include core strategy launches, ETF share classes for existing funds, and potential international vehicles. - Expects the won and unfunded pipeline of 1.9 billion to convert to funded assets over a typical lifecycle of approximately four months. - Maintains expense guidance with compensation and benefits projected at approximately 40% of revenues and mid-single-digit growth in G&A expenses for 2026. - Foresees continued institutional interest in tactical real estate solutions as allocators seek to optimize core property holdings through better returns and liquidity. - Flagged approximately 400 million in expected institutional outflows related to client-specific rebalancing and M&A activity rather than investment performance. - Noted a 1-time portfolio reallocation by a Japanese sub-advisory client that partially offset strong inflows in the institutional channel. - Reported that the non-traded REIT (CNSREIT) is approaching its 3-year track record in January, which management expects will facilitate onboarding at larger wirehouse distributors. - Acknowledged that while higher interest rates create near-term pressure, they have not changed the relative attractiveness of real assets compared to concentrated equity markets. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management stated that the tone of investor conversations remains positive as the value proposition of real estate is well-appreciated after a multi-year downturn. - Emphasized that improving rental growth and fundamentals are providing investors with the confidence to move past timing concerns. - Noted that wealth channel flows increased in each month of the quarter (July, August, September), showing no immediate impact from recent macro volatility. - Reported the second-best quarter for SICAV inflows, with specific momentum in the U.K., South Africa, and Asia. - Identified Asia as the most rapidly growing wealth market and plans to increase investment in sales professionals and data to capture this opportunity. - Highlighted that South African investors have a particular appreciation for natural resources, aiding strategy adoption there. - Clarified that data centers represent about 10% of the US real estate portfolio, primarily in existing assets rather than speculative development. - Explained that utilities (1/3 of the infrastructure business) are seeing earnings growth step up to 7-8% due to power generation needs for AI. - Argued that real estate and infrastructure offer a better risk-reward play for AI themes compared to high-leverage non-infrastructure business models. - Management believes their non-traded REIT's focus on open-air shopping centers has allowed them to avoid the return pressure currently facing apartment and industrial sectors. - Anticipates that the current rate environment may create attractive entry points for their private team to acquire distressed assets in 2 years' time.

- Interested in Cohen & Steers Inc? Here are five stocks we like better. - Third-quarter results improved: Adjusted EPS rose to $0.89, while net income increased 11% year over year to $46.5 million and the operating margin expanded to 37.2%. Average AUM reached $101 billion, although ending AUM fell to $95.9 billion due to negative market movements. - Organic growth broadened: Cohen & Steers generated $1.6 billion in net inflows, its fifth consecutive quarter of organic growth, led by real estate, multi-strategy real assets and preferred securities. Wealth-channel inflows totaled $1.3 billion, while active ETF assets grew 22% to $1.3 billion. - Performance and pipeline strengthened: 74% of AUM outperformed in the quarter, up from 40% previously, and the won and unfunded institutional pipeline grew to $1.9 billion. Management continues to see strategic demand for listed infrastructure and real assets despite pressure from higher Treasury yields. Cohen & Steers (NYSE:CNS) reported third-quarter adjusted earnings per share of $0.89, up from $0.85 in the prior quarter, as higher average assets under management and controlled expenses helped lift profitability. The investment manager recorded its fifth consecutive quarter of organic growth and its strongest net inflow period since the fourth quarter of 2021. Chief Financial Officer Amit Muni said the company generated $1.6 billion in net inflows during the quarter, representing more than 6% annualized organic growth. Assets under management ended the quarter at $95.9 billion, down from $100 billion at the end of the second quarter, as negative market movement offset inflows. Average AUM, however, rose to $101 billion during the period. → Don't Get NVIDIA's Reflection AI Interest Wrong: Its Moat Could Deepen Net income totaled $46.5 million, increasing 6% sequentially and 11% from the third quarter of last year. Revenue rose 3% from the prior quarter to $156 million, while operating expenses increased 2% to $98 million. The company's operating margin expanded to 37.2%. Muni said Cohen & Steers continues to expect compensation and benefits expenses to represent about 40% of revenue, general and administrative expenses to grow at a mid-single-digit rate versus 2025, and a pro forma effective tax rate of 25% to 26%. → Tesla Wants to Make Its Own Chips—What Could Go Wrong? Management said inflows were broad-based across investment strategies, vehicles and distribution channels. Every investment strategy posted positive net inflows, led by real estate, multi-strategy real assets and preferred securities. The wealth channel generated $1.3 billion in net inflows. Chief Executive Officer Joe Harvey said growth was balanced among mutual funds, active exchange-traded funds and SICAVs, or offshore mutual funds. The company's active ETF assets grew 22% during the quarter to $1.3 billion. → Birkenstock's Strong Growth Creates a Buying Opportunity Cohen & Steers launched its seventh active ETF in August, the Cohen & Steers Real Assets Active ETF, trading under the symbol CSRA. Harvey said the fund is designed as a multi-strategy real assets allocation that can offer inflation sensitivity, diversification and long-term total-return potential. Preferred securities posted a third straight quarter of net inflows, with low-duration preferred securities standing out. Harvey said advisors are seeking income while limiting interest-rate exposure, and management views yields near 6% as an attractive risk-adjusted income opportunity. Institutional net inflows were modestly positive at $49 million. New advisory and sub-advisory mandates more than offset a one-time portfolio reallocation by a Japanese sub-advisory client in real estate. The company's won and unfunded institutional pipeline increased to $1.9 billion from $1.6 billion in the prior quarter, its second-largest level ever, according to Harvey. - About 20% of the pipeline was in each of real estate, listed infrastructure and multi-strategy real assets. - North America represented 56% of the pipeline, followed by EMEA at 22% and APAC at 16%. - The company said $700 million of funding activity was replenished by more than $1.1 billion of new mandates awarded during the quarter. Harvey also said Cohen & Steers has been notified of approximately $400 million in partial account-rebalancing outflows from two institutional clients. He said neither reallocation was related to investment performance; one client is eliminating an asset class, while the other is being acquired and changing portfolio strategy for a portion of its accounts. President and Chief Investment Officer Jon Cheigh said 74% of the company's AUM outperformed during the third quarter, up from 40% in the second quarter. Over the past one, three and five years, 57%, 97% and 98%, respectively, of AUM outperformed. Cheigh highlighted an improvement in real estate investment performance. Eighty-six percent of U.S. real estate AUM outperformed in the third quarter, compared with 15% in the prior quarter, while global real estate improved to 67% outperforming from 2%. Infrastructure and preferred securities continued to show strong results, with 100% and 97% of AUM, respectively, outperforming over the past year. He said higher long-term Treasury yields have pressured REITs, listed infrastructure and preferred securities since the summer. Treasury yields above 5% have been driven primarily by rising real yields rather than a major change in inflation expectations, Cheigh said. In his view, about half of the recent increase reflects resilient economic growth, while the rest reflects higher term premiums tied to fiscal issues, debt supply and global factors. Cheigh said management does not believe higher rates have changed the relative attractiveness of the company's asset classes. He pointed to improving real estate fundamentals, including reduced new supply and growing demand, and cited expected EBITDA growth of 9% for global listed infrastructure and anticipated earnings growth of 20% for natural resource equities. Harvey said listed infrastructure has recorded seven consecutive quarters of net inflows as allocators increasingly treat it as a dedicated strategic allocation. He said investor interest is not necessarily coming at the expense of private infrastructure; instead, institutions are recognizing potential benefits from combining listed and private exposure, including liquidity, sector access and differing return cycles. Multi-strategy real assets strategies have attracted nearly $900 million of year-to-date inflows. Harvey said investors are increasingly considering real assets as a strategic allocation amid persistent inflation concerns, equity-market concentration and a need for diversification. The company's open-end multi-strategy real assets mutual fund reached $2.1 billion in AUM, compared with $150 million in 2020. The company also plans to further invest in its SICAV business after reporting its second-best quarterly flow result, following a record second quarter. Harvey cited activity in the United Kingdom, South Africa and Asia, where developing wealth and advisory markets are creating opportunities to educate investors on real assets. In private real estate, Harvey said Cohen & Steers Income Opportunities REIT, or CNSREIT, has approximately $900 million in total assets and about $400 million in equity value. He said the nontraded REIT is approaching its three-year track record in January, which could make it more viable for placement with larger distributors. The company has focused fundraising efforts on endowment-style registered investment advisers, while broader wirehouse demand for real estate remains behind infrastructure and private credit. Cohen & Steers, Inc is a global investment management company specializing in listed real assets and alternative income. The firm manages portfolios focused on areas such as real estate securities, infrastructure, natural resource equities, commodities, preferred securities and other income-oriented investments. Its investment solutions are offered through mutual funds, exchange-traded funds, closed-end funds, institutional accounts and separately managed accounts. Cohen & Steers serves a range of clients, including institutional investors, financial advisers and individual investors, with strategies covering markets in the United States and internationally. Founded in 1986 by Martin Cohen and Robert Steers, the company is headquartered in New York City and maintains an international presence to support its global investment activities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Cohen & Steers Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Image source: The Motley Fool. Friday, Oct. 16, 2026 - Head of Financial Planning and Analysis and Investor Relations - Brian Heller - Chief Executive Officer - Joseph Harvey - Chief Financial Officer - Amit Muni - President and Chief Investment Officer - Jon Cheigh Need a quote from a Motley Fool analyst? Email [email protected] Operator: And Ladies and gentlemen, thank you for standing by. Welcome to the Cohen and Steers Third Quarter 26 Earnings Call. During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session. At that time, if you have a question, please press the star followed by 1 on your telephone. If at any time, As a reminder, this conference is being recorded Friday, 10/16/2026. I would now like to turn the conference over to Brian Heller, head of financial planning and analysis and investor relations of Cohen & Steers. Please go ahead. Robert Klemens: Thank you, and welcome to the Cohen and Steers third quarter 26 Conference Call. Joining me are Joseph Harvey, our Chief Executive Officer; Amit Muni, our Chief financial officer and Jon Cheigh, our president and Chief Investment Officer. Before we begin, I want to remind you that statements made during today's call may include forward looking statements. Actual results may differ materially because of risks and uncertainties. Including those described in today's earnings release and presentation, our most recent annual report on Form 10-K and in our other SEC filings. We assume no obligation to update any forward looking statement. Nothing on this call constitutes an offer or solicitation with respect to any fund or other investment vehicles. We will also refer to non GAAP financial measures, also referred to as adjusted financial measures. Reconciliations to the comparable GAAP financial measures are included in today's earnings release and presentation. To the extent reasonably available on the Investor Relations section of our website at www.cohenandsteers.com. Before I turn the call over to Amit, I want to note that we have made several enhancements to how we categorize our funds this quarter, and have posted our historical results in this same format to the investor relations section of our website. And with that, I will turn the call over to Amit. Amit Muni: Thank you, Brian, and good morning, everyone. On today's call, I will begin with a review of our operating and financial highlights for the quarter, Jon will then discuss investment performance and the market environment, followed by Jon, who will close with our strategic growth priorities, and the momentum we are seeing across the business. We will then open the call for your questions. I will focus my remarks on our adjusted results. Turning to the highlights for the quarter. We reported adjusted earnings per share of $0.89, up from $0.85 in the second quarter. Ended the quarter with assets under management of 95.9 billion down from $100 billion last quarter as negative market movement offset the strong flows generated during the period. But nevertheless, our average AUM increased to $101 billion in the quarter. We generated 1.6 billion of net inflows, representing our fifth consecutive quarter of organic growth and our strongest flow period since the fourth quarter of 21. Our institutional pipeline also increased to 1.9 billion from $1.6 billion last quarter. Also continue to make advancements in our strategic growth initiatives while maintaining consistent long term investment performance across our platform. Turning to flows on the next slide. Our organic growth momentum continued to strengthen with more than 6% annualized organic growth in the quarter. Importantly, the breadth of the growth is encouraging. Wealth continued to lead with strong flows across mutual funds, SICAVs, and ETFs, while institutional flows also turned modestly positive. At the strategy level, every investment strategy generated positive net inflows led by real estate, multi-strategy real assets, and preferred securities. Taken together, these results demonstrate increasingly broad based growth across strategies, vehicles, and distribution channels. Turning to the next slide. I will review our financial performance. Net income was 46.5 million for the quarter, an increase of 6% from the second quarter and 11% from the third quarter of last year. Our operating margin expanded to 37.2% reflecting the benefit of higher revenues and controlled expenses demonstrating the operating leverage inherent in our business model. Turning to the next slide, I will review the quarter over quarter changes in revenues and expenses. Revenues increased 3% to a $156 million driven by higher average AUM, reflecting the continued strength in the business despite the negative market movement experienced mostly in September. Total operating expenses increased 2% to 98 million primarily due to higher incentive compensation accruals associated with increased revenues and lower G&A related costs. Looking ahead, we are maintaining our expense guidance We continue to expect compensation and benefits expenses of approximately 40% of revenues, mid-single-digit growth in G&A expenses relative to 2025, and a pro forma effective tax rate of 25% to 26%. We remain focused on translating the momentum we are experiencing in the business into operating leverage over time. Thank you, and I will turn the call over to John. Jon Cheigh: Thank you, Amit, and good morning. Today, I would like to cover 3 topics: our performance scorecard, and the improving trend the impact of higher interest rates, and the positioning of our asset classes in the current environment. Beginning with our performance scorecard, 74% of our AUM outperformed in the third quarter. Up from 40% in the second quarter over the last 1, 3, and 5 years, 57%, 97%, and 98% of our AUM, respectively, has outperformed. Last quarter, I addressed our 1-year result as an outlier driven by US REITs and noted that we expected a reversion to our historical norm of 200 basis points of alpha. While 1 quarter does not make a trend, we are encouraged by the early evidence. 86% of our US real estate AUM outperformed this quarter. Up from 15% last quarter. Global real estate saw a similar turnaround. From 2% outperforming to 67%. And while it is early, fourth quarter momentum is encouraging, and we believe our REIT performance is back on trend. Notably, our infrastructure and preferred securities teams continue to deliver with 100%, 97% of AUM respectively outperforming over the last year. Turning to the market. Higher interest rates have weighed on our asset classes. REITs, listed infrastructure, and preferred securities have declined from their summer highs. The primary driver has been the sharp rise in long-term treasury yields now above 5%. Despite all the attention being given to oil, this has not been an inflation story. it is been a real yield story. Nearly all of the roughly 100-basis-point rise in the 10-year this year has come from real yields. While inflation expectations have changed very marginally. In our view, roughly half of the most recent move in yields reflects resilient economic growth and the other half reflects higher term premium associated with fiscal issues, debt supply, and global factors. That distinction matters. Stronger growth supports the higher earnings of the companies we invest in, while higher term premium affects the valuation of essentially all asset classes, not just ours. So while higher rates have created near term pressure, we do not believe they have changed the relative attractiveness of our asset classes. it is also important to put the current rate environment in historical perspective higher rates do not mean poor returns for real assets. For example, REITs have generated positive returns in 4 of the last 5 hiking Fed hiking cycles. The 2022, 2023 hiking cycle was clearly different. With REITs returning -11% annualized But in the 2004 and 2016 hiking cycles, annualized returns were a +24%, 8% respectively. The lesson is that the level of interest rates alone does not determine returns. What matters is the pace of change relative to market expectations along with the underlying fundamental trajectory and valuations. And that leads to what I think is the most important point about today's environment. Unlike 2022, 2023, we are entering this period with improving fundamentals. In listed real estate, we see an early to mid cycle recovery. Reduced new supply, and growing demand should support growth above historical norms. And this is not just a real estate story. Real assets broadly are benefiting from significant secular investment needs which are driving earnings growth. We expect 9% EBITDA growth for global listed infrastructure, versus a historical average of 6% to 7%. And 20% earnings growth for natural resource equities versus a historical average of 6% to 8% Rates matter. But valuations and fundamentals matter more. And today, we believe both are increasingly supportive of our asset classes. So how should investors think about this environment and positioning their portfolios? We believe the investment regime has changed from the 1 that prevailed for much of the past 15 years. Investors we speak with are increasingly seeking diversifiers. Investors now have attractive opportunities in fixed income, but they also face greater inflation risk. Greater equity market concentration, an acute need for diversification. That, in turn, makes the case for a barbelled approach. On the 1 side, preferred securities can provide attractive income, and real returns. On the other side, real estate, infrastructure, and natural resource equities can provide growth, diversification, and inflation protection. So we see distinct opportunities across our strategies. For investors seeking income, preferred securities, for investors looking to participate in the real estate recovery our REIT strategies offer accelerating fundamentals. For investors seeking secular growth and diversification listed infrastructure and natural resource companies are benefiting from powerful global tailwinds such as commodity undersupply, reindustrialization, and AI infrastructure. For investors seeking a broad real asset solution, our multi-strategy real assets portfolio brings these exposures together in a diversified allocation. We believe our asset classes offer compelling solutions for delivering income inflation protection, diversification, and liquidity. All while allowing investors to reduce exposure to the more concentrated and more expensively valued segments of the market. With that, let me turn the call over to Jon. Joseph Harvey: Thank you, Jon, and good morning. Today, I will review key business trends, report on our growth initiatives, and discuss broadening interest in our listed infrastructure and multi-strategy real assets strategies. Our third quarter results provide further evidence our growth strategy continues to gain traction. Key indicators include strong 3- and 5-year investment performance, robust net inflows, and a sizable won and unfunded pipeline. We generated 1.6 billion of net inflows marking our fifth consecutive positive quarter and our strongest net flow quarter since the fourth quarter of 21. Growth was broad based across strategies, vehicles, and distribution channels, and our institutional pipeline strengthened to 1.9 billion as it continued to replenish. We experienced modest quarterly asset appreciation driven primarily by market wide reaction to rising bond yields. Overall, our results demonstrate the strength and diversity of our business. Our wealth channel continues to drive organic growth with 1.3 billion of net inflows this quarter. Growth was balanced across mutual funds, active ETFs, and SICAVs, demonstrating alignment between our vehicle lineups and client investment models. Along those lines, we launched our 7th active ETF in August, Cohen & Steers Real Assets Active ETF, symbol CSRA. This ETF is an actively managed multi-strategy real assets portfolio we believe offers inflation sensitivity, long term total returns, and diversification across real asset sectors within a single allocation. Believe this is an attractive strategy for investors who want a turnkey allocation to real assets. In addition, we see compelling use cases in both the retirement and health care markets. Adoption of our active ETFs is accelerating with growth of 22% during the quarter to 1.3 billion. Industry wide, US ETFs both active and passive, have taken in a record 1.5 trillion so far this year. Which beats the full year record set in 2025. ETFs are becoming the preferred vehicle for advisers and individuals we believe our active ETF strategies offer compelling solutions. With tax efficiency, attractive expense ratios, intraday trading and transparency, and a track record of alpha generation that passive cannot offer. We continue to review options for the next phase of our ETF strategy which may include more core strategy launches, ETFs as a share class for existing funds, and potential international vehicles. Preferred securities are an example of strategy diversification compared with real assets in our business. This strategy had its third consecutive quarter of net inflows with low duration preferreds being the standout. This is a compelling environment for this strategy as advisers look for income without taking on meaningful rate risk. With yields near 6%, we believe it is 1 of the best risk adjusted income opportunities in fixed income debt today. Especially as advisers are looking for alternatives to fixed income that is underperformed such as municipal bonds. Institutional flows were modestly positive with 49 million in the quarter. This includes strong net inflows from new advisory subadvisory mandates, which more than offset a 1-time portfolio reallocation by a Japanese sub advisory client in real estate. We are seeing continued progress with our institutional tactical real estate LP fund as it continues to contribute to our won and unfunded pipeline. We are also seeing success in our sub advisory ex Japan business with the funding of several new mandates driven primarily by takeaways from peers. In global sub advisory, we intend to build on our momentum in The US Canada, New Zealand, and Australia. Focusing as well on opportunities in other countries and look forward to reporting on those initiatives in the future. Looking ahead, we have been notified of approximately 400 million in partial account rebalancing outflows from 2 institutional clients, which are not related to investment performance. 1 client is eliminating an asset class and the other is being acquired and changing portfolio strategy for a portion of its account. While institutional flows can be uneven from quarter to quarter, the sustaining replenishment of our pipeline gives us confidence in the direction of the business. Our won and unfunded pipeline grew to 1.9 billion in the third quarter, the second largest ever. Velocity of the pipe pipeline continues with 700 million of fundings reloaded with over 1.1 billion of new mandates awarded within the quarter. Similar to our flows, continue to see diversification on our pipeline with 20% in each of real estate, listed infrastructure, multi-strategy real assets, as well as diversification by region with 56% North America, 22% in EMEA, and 16% in APAC. We continue to invest in distribution, 1 example is our SICAV business where we are seeing strong results and we want to invest more as wealth markets develop in countries such as South Africa, and regions like Asia. We are pleased to welcome Eric Schneeberger to Cohen & Steers as our new chief marketing officer. Eric has many years of experience leading and building award winning marketing teams. We look forward to Eric elevating our global marketing efforts and expanding our brand and media strategies digital innovation, and client engagement. Finally, I want to shine a spotlight on 2 strategies where allocator demand is broadening. Listed infrastructure is increasingly becoming recognized as a dedicated strategic allocation and portfolios. While early allocators favored private infrastructure, they are realizing the benefits of allocating to both listed and private together. Especially as liquidity has become a growing need in institutional portfolios. While replacing and expanding aging infrastructure has been an investment theme for some time, capital investment has reemerged at the forefront of the growth of AI, reindustrialization, and supply chain trends. Giving the asset class renewed and widespread appeal. These trends have contributed to our seventh straight quarter of net inflows in the strategy. As allocators look at their real assets allocations holistically, infrastructure has been gaining portfolio share. We have been a direct beneficiary and right now, picking any time period 1, 3, 5, 10 years, and since inception going back to 2004, our performance has never looked better. We are seeing interest in newer markets such as Europe and South Africa, with growing interest in Asia, including South Korea. We believe our 22 years of consistently generating alpha with our team of dedicated specialists makes us a natural partner. Investors are likewise turning to our multi-strategy real asset solutions with almost 900 million of year to date inflows. Our multi-strategy portfolios are compelling solution to diversification, offering equity like return potential, with less of the volatility of any single asset class plus meaningful inflation protection. And the sustained inflationary environment is motivating investors to make this allocation more strategic. Furthermore, we believe we have moved into an era of scarcity and that we are still early in the large build out of supply chains and physical assets. Illustrate the characteristics of the real asset blend, index would have delivered annualized returns of 11% during periods of inflation since 2 thousand. Compared with 3.1% for global equities and 2.7% for tips. With the S&P more concentrated at 40% in its top-10 stocks, than any other point in modern history, investors are seeking solutions that have a low correlation to global equities. This is why I believe that all 401(k) plans should have a multi-strategy real assets fund for participants. Our open end mutual fund has reached 2.1 billion in AUM, up from 150 million in 2020. Taken together, these trends support our view that real assets are becoming a core allocation in portfolios, and we are well positioned to capture that demand. To summarize, we believe our third quarter results demonstrate that our business strategy is working. Organic growth in our strategies has returned. Our investment teams are strong. Our range of vehicles is opening new avenues for growth. And our investments in distribution are extending our reach with clients around the world. We believe Cohen and Steers is well positioned to build on this momentum and deliver sustainable long term growth. Thank you, and we will now take your questions. Julianne, can you open up the lines for questions? Operator: We will now begin the question and answer session. Please limit yourself to 1 question and 1 follow-up. If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. Ask that you please pick up your handset when asking a question to follow to allow for optimal sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. And our first question comes from, John Dunn from Evercore ISI. John Dunn: Thanks. You know, you framed the broader picture in prepared remarks, so maybe to drill down a little more, you know, with rates likely moving higher. What gives you confidence demand for real estate? can sustain? Maybe give a flavor of the conversations you are having with FAs and then in the wealth channel and with institutional investors and consultants. Any differences between, like, the 2 sides? Joseph Harvey: I will ask Jon Cheigh to take the question on real estate, and I will respond to the question on wealth versus institute. Institutional markets. Jon Cheigh: Hey, Jon. Thanks for your question. You know, I would say that we have not really seen any kind of notable change in tone in how the investors were talking to are looking at the real estate opportunity. I think for most investors, you know, real estate's been in the so called doghouse, if you will, you know, over the course of 22, 23, 24. So the idea that there is very good value here is very appreciated. The question has just been about the timing of the recovery and what that recovery looks like. And as I said, you know, we are seeing improving rental growth And so that, improvement in fundamentals is giving more investors a greater confidence. So, you know, that is why we are seeing the pipeline continuing to grow. You know, that being said, you know, the winners and losers within real estate, and by that, I mean, the kinds of sectors that have been winners or losers, you know, they are gonna be different. And so it is not just about the beta or exposure to real estate. We have talked for the last couple calls about how strong for example, our non traded REIT, performance has been since inception and since this year. And that is because it is positioned very differently, frankly, than, its peers that have been out in the market. And so, again, we think that is gonna create an opportunity that as investor interest in real estate continues to grow, there will also be a greater realization that it is not just getting the beta. it is about picking the new winners, for this new cycle. Joseph Harvey: Then, John, just to talk a little bit about institutional and wealth. You know, on the institutional side, you know, the process is 1 where you know, allocations are deliberated over and made over say, a 9-month time period. So you cannot really look at the on the run, you know, data points to really see what that market is doing. But as we have been talking about in these calls, are won and unfunded pipeline has now been very strong for about 5 quarters and as I mentioned, We have hit a second, you know, best all time number this quarter. Importantly, it is broader than it has been historically. Across our investment strategies. And in terms of the pace of, you know, prospect and client activity that we are conducting at. it is. You know, nothing has really changed as it relates to the changes in the macro over the past couple of months. And so when we look at you know, the searches that we are in and the so-called backlog pipeline, you know, we feel good about you know, the increased interest in, our strategies. As it relates to, the wealth channel, of course, with our vehicles, our open end, you know, daily vehicles, we can get more real time views on, you know, investor sentiment. And, you know, I think that the historical view of retail is very coincident with the market. But, you know, we are increasingly spending our time with advisers who are more sophisticated allocators. They are. They follow more like an endowment model. So you know, you know, I would expect to see less of the coincident, type of flow activity in you know, get a real good read on, you know you know, how investors are thinking. If you look at our average daily flows over you know, the period for this quarter, July, August, September, you know, the. Our average daily flows increased in each of those of those months. So, as far as we can see today, no real impact on flow activity from the changes in the macro environment recently. John Dunn: Got it. And then, you know, thinking about some of the newer growth areas, could you give a little more detail on the SICAV lineup? Like where the demand preferences are? You mentioned a couple of regions, but are there any others to highlight you know, stuff like relative fee rates and any differences you are experiencing versus you what you have seen for a long time in the U.S. wealth channel? Joseph Harvey: Well, you know, our offshore mutual funds, the SICAVs, you know, we have had a really strong quarter inflows. It was our second best quarter and that followed our best quarter in the second quarter. So I am very excited about this business. We are at about 2.1 billion in overall AUM. So it is not huge, but I think it has a very strong potential. And, you know, we are seeing good activity in the U.K. As I have mentioned a couple times, we are seeing good activity in South Africa. We are seeing increasing activity in Asia. So you know, 1 of the things that we are seeing in a couple of these markets is the development of the wealth business, the advisory business. And South Africa is a good example of that. So, as we interact with these advisers, you can just kind of tell that their businesses are developing and they are, you know, being educated on, more asset classes globally. So it is a great opportunity for us to, educate on real assets. And a country like South Africa, they have appreciation for things like nat. Natural resources. So we are having some success there. Asia is the most rapidly growing wealth market in the world. it is much bigger and a little more complicated, but we are seeing kind of some similar you activity as it relates to the early development of the wealth of the wealth market. So, you know, taking a step back, based on this success, we are going to invest more in this in this area. You know, by virtue of you know, our sales professionals and data to know where to go. And so it is it is a very it is a very exciting know, part of our business. Thank you. Operator: Our next question comes from Craig Siegenthaler from Bank of America. Please go ahead. Your line is open. Analyst: Morning. This is Ivory on for Craig. On infrastructure, it had another quarter of strong inflows and you stated that listed infra is becoming a dedicated strategic allocation. Are you seeing allocators move from private infra to listed because of liquidity or slow distribution? And are you considering a semi liquid infra product for the wealth channel as you kind of did with CNSREIT? Joseph Harvey: So, you know, I would say that the growing interest in listed infrastructure is not coming at the expense of private infrastructure. Private infrastructure has been 1 of the largest growth areas of institutional allocation So it does not look like the, you know, the allocations to private infrastructure are you know, the rates of acceleration are leveling off. But I think it is just a natural evolution just as we have seen in real estate where you know, investors recognize that you put the 2 together listed in private and you can end up with better results. And that comes, you know, from many dimensions whether it is the sectors you can get allocated to, the management teams that you can get in each sector. And the fact that the return cycles are out of phase so that allocators who have the capability to move between the list and private markets can generate alpha from those things. So I think that infrastructure is still in a bull market, and it is gonna continue to be based on the things that John and I talked about, you know, with respect to the capital investment cycle pertaining to AI and power. and such. As it relates to the wealth market, it is it is it is been a bull market in the vehicles for private infrastructure. We have something that is in the lab but we are not ready to talk about it. But as it relates to, you know, private strategies in the wealth channel, we are we are very focused on our non traded REIT CNSREIT. Got it. Analyst: Thank you. And just as a follow-up, you said data centers are 1 of the booming parts of real estate, and your deck now puts listed infrastructure at the forefront of AI growth. How much of the recent performance and pipeline in your REIT and infra strategies depends specifically on the AI and data center demand. And if AI CapEx were to slow, how exposed would the flows be across the 2? Jon Cheigh: Sure. I will take that. So, within our US real estate strategy, just roughly speaking, you know, data centers are about, you know, 10% of our portfolio. So they have been beneficiaries of, obviously, the significant demand, for data centers. But most of that has come from existing assets as opposed to new development. So is there some exposure? I would say, yes. Certainly, at the margin, there is some exposure. But this roughly 10% of the portfolio is not very frontier or development. On the infrastructure side, there is less direct exposure, but there is indirect exposure in the sense that, let's just say, roughly 1/3 of our infrastructure business is in the utility space where, historically, earnings for utilities have been, call it 4% or so. And there is been, a step up in that growth rate more in the 7% to 8% range. A part of that is because the need for, investment for, you know, power generation of which, of course, AI and data centers are a big, but definitely not the only part of that. So, you know, look, there are some, exposure there, but it is it is not direct. And, you know, as we look out over the next, you know, 3, 4, 5 years or so. In both cases, we would say data centers power generator. You know, this is a so-called infrastructure layer, if you will. We do not believe there is excess capacity of compute. And so know, to the extent certain stocks sell off, because of a concern about the future trajectory of growth slowing. I mean, that is not really gonna have an impact on this infrastructure layer. It might change the long term growth, but it is certainly not having any kind of a short term direct impact. So, if anything, we think real estate and infrastructure are a really good risk reward way to play AI and the need for compute. Obviously, there is other ways to, invest in those themes that can be much higher reward. But as we have seen over the last few days, also much higher risk because of the operating leverage or financial leverage embedded in some of those other noninfrastructure, nonreal estate business models. Thank you. Operator: For any additional questions please press star followed by 1 on your telephone keypad. Our next question comes from John Dunn from Evercore ISI. Please go ahead. Your line is open. John Dunn: Private real estate. You know, it seems to be gaining some traction lately. When do you think we could see an acceleration in organic growth there? And then is it seen that there are advantages to being a newer platform And does that resonate with investors like when you are competing against the legacy brands? In that space? Operator: John, I missed the very beginning of your question, but I think I know what it is. Joseph Harvey: So let me let me start, and then you can, you know, follow-up. But, you know, as it relates to CNSREIT, our non traded you know, real estate vehicle. We continue to have among the best performance in the in the peer group. Since our inception, it is the number 1 performing non traded REIT, and that is based on our investment team nailing it as it relates to an investment thesis around OpenAir shopping centers, both grocery-anchored shopping centers and power centers. And so we have continued to work toward getting critical mass The portfolio is about 900 million in total assets with equity you know, value of about 400 million. So we are getting to the point size wise and you know, track record wise, i.e., we are going to hit our 3-year track record in January where it is now more viable to get platformed at larger distributors. We have been very focused on working with, you know, endowment type RIA firms and that is where the majority of our capital has been raised. You know, in terms of the onboarding process at the wirehouses, real estate is still a less favored strategy compared with infrastructure, and private credit. So we are going to have to, you know, get further into the cycle to see a broader take up from the largest distributors. That said, in the RIA channel, these allocators get the investment thesis. They have enjoyed the returns that we have delivered. And, as our team starts to think about you know, what is next on the investing front, we think we are going to be able to sustain the type of relative performance that we have delivered in that Cohen & Steers income Opportunities REIT. So we are we are very excited about the whole initiative. The investment you know, landscape is gonna get even better for us and we. We have been talking about these calls and in that in other places. I think with about your second question, which is a lot of capital has gone into certain segments of the real estate industry namely apartments and industrial. And you know, the current rate environment is gonna pressure the return cycle of those strategies. So we are not affected by that because we have not been allocating to them. However, in 2 years' time, it may present a great investment opportunity for our private team. So we are excited about where we are at in the real estate cycle and what the rate environment is doing to private markets that, you know, maybe got a little excessive and are going through their downcycle. But that is that is the Cohen & Steers brand. We are about innovating and innovating around performance. So, we are we are we are we are we are ready. John Dunn: Got it. And then if I could sneak 1 on the pipeline. You talked about 9 months to kind of win the mandate. What about the timing of converting the pipeline? And you mentioned it is broadening, maybe just a flavor of the composition of what is in it? Joseph Harvey: Well, the life cycle in terms of getting from the pipeline to fund is roughly about 4 months. In terms of, know, getting to the won point, you know, that could. That can be it can be very short or it can be very long in terms of in terms of years. So the composition of it, just like last quarter, is very diverse. And so that is that is very exciting. it is it is across real estate. Both US, real estate and global real estate. And that is something that is changed a little bit. You know, there was a period of time amidst peak, US exceptionalism where, you know, global allocations were not very prevalent. You know, we have seen more global allocations in real estate. So it is real estate. it is infrastructure. it is multi-strategy real assets, and I would say that is gone up in the pipeline and flows. And, again, it is if 3 years ago, people were saying, yeah, I see it. inflation's ticked up. But I think that is transitory. it is gonna come back down. And they did not think about real assets as a strategic allocation, I think by now, inflation is so embedded in our economy and the psyche. So inflation sensitive allocations have to become strategic in investor portfolios. So and then, of course, you know, other, you know, real estate strategies that are institutional listed private vehicle that I referenced, the tactical real estate fund is a part of the pipeline. We are seeing a lot of interest in that strategy. From institutions who own the core property funds, the so called ODCE funds. And the tactical real estate fund is a solution for them to get a better allocation in terms of having a better core real estate allocation by virtue of returns and diversity and liquidity. So the composition of the pipeline, looks very good. Thank you. Operator: We have no further questions. I would like to turn the call back to Joseph Harvey for closing remarks. Joseph Harvey: Well, thank you, Julianne. I said, it was a good quarter, and we are looking forward to reporting to you on the fourth quarter and at the beginning of the New Year. So thank you. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect. Before you buy stock in Cohen & Steers, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cohen & Steers wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $391,581!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,334,780!* Now, it's worth noting Stock Advisor's total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 16, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Cohen & Steers (CNS) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Cohen & Steers came into Q3 2026 earnings with a stock that had slipped over the past three months but crept 0.9% higher to US$69.63 on the day after the release. The move was modest. The headline was not. Management reported Q3 adjusted earnings per share of US$0.89 with operating margin at 37.2% and the real story sat in flows. For an asset manager long associated with listed real assets, the key surprise was not the share price reaction but the fifth straight quarter of net inflows, reaching US$1.6b and marking the strongest organic growth since late 2021. Like the resilience in Cohen & Steers' inflows but want other asset managers with strong fundamentals on your radar too? Take a look at our screener of list of solid balance sheet and fundamentals stocks (25 results). - Total Revenue (Q3 2026 vs. Q3 2025): US$157.4m vs. US$141.7m (up about 11%) - Net Income, Excl. Extra Items (Q3 2026 vs. Q3 2025): US$42.2m vs. US$41.7m (roughly flat, modest increase) - Basic EPS (Q3 2026 vs. Q3 2025): US$0.82 vs. US$0.81 (slight improvement) - Net Inflows (Q3 2026 vs. Q3 2025): US$1.55b vs. US$233m (very strong step up in organic flows) Earnings tell one story, but investors who care about valuation often focus on the cash flows that actually fund dividends and buybacks. Looking at Cohen & Steers' cash flows alone, the stock could be a notable 21% overvalued. The bullish story hinges on Cohen & Steers turning product build out into real, fee earning AUM. The clearest expression of that ambition sits here. "The build-out of active ETFs tied to core REITs, preferreds, global infrastructure and natural resource equity strategies is attracting RIAs and model-based allocators who prefer ETF vehicles. This can scale existing investment IP into higher AUM with relatively modest incremental costs and support margins." Q3 puts some numbers behind that claim. Active ETF assets reached US$1.3b, with 22% growth in the quarter and a seventh ETF launch. Operating margin at 37.2% suggests early operating leverage from that expansion, supported by five straight quarters of net inflows across strategies. The price and this Narrative do not agree. → Uncover what this Narrative says Cohen & Steers is actually worth. The harsher view argues Cohen & Steers' product expansion risks bloating the cost base faster than fees grow, leaving shareholders with weaker profitability over time. "If asset allocators revert toward traditional equity and bond mixes, product proliferation could raise costs faster than fees, reducing net margins and earnings growth." This quarter points the other way. Operating margin reached 37.2% while net inflows hit US$1.6b and active ETF assets grew to US$1.3b. Expense guidance is unchanged and management still targets operating leverage, so the feared margin squeeze is not evident in these results. Cohen & Steers just showed how flows and margins can adjust more quickly than sentiment. The real opportunity is finding stocks that could be undervalued before the market corrects them. - Company 1 - 23% below our estimate - designs power and liquid cooling systems for AI data centers as air cooling reaches physical limits. - Company 2 - 36% below our estimate - converts a strong advisory pipeline and senior hiring into higher fee large cap and private capital mandates. - Company 3 - 26% below our estimate - sells weight loss and diabetes treatments that investors track closely as approvals and capacity influence served demand. Those are three of them. See every one of the 33 undervalued companies on it → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CNS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Cohen & Steers (CNS) has investors parsing a mixed third quarter, with double digit revenue growth above market expectations paired with a slight earnings per share shortfall against analyst forecasts. The Q3 update landed after a choppy spell for Cohen & Steers, with the share price up 3.90% on the day to US$68.98 but still down 4.64% over 30 days and 18.51% over 90 days. This suggests recent momentum has been fading, even though the year-to-date share price return of 8.51% and 1-year total shareholder return of 8.76% sit against a much stronger 3-year total shareholder return of 43.84%. The 5-year total shareholder return declined 10.17%. Spot similar asset managers to Cohen & Steers that combine real-asset exposure with resilient fundamentals by scanning our curated list of list of solid balance sheet and fundamentals (25 results). Cohen & Steers appears to be a solid real assets manager based on recent figures, yet the stock is still working off a sharp 90-day pullback. Are investors getting quality at a fair price today, or paying up? Cohen & Steers closed at $68.98, while the most followed narrative pegs fair value closer to $76.33. This frames today's pullback as a valuation gap rather than a simple sentiment swing. The main thing that has to go right is that investor appetite for listed and private real estate and other real assets remains strong enough for the institutional pipeline, SICAV flows, and private vehicles to continue attracting net inflows. The current valuation implies that Cohen & Steers is priced for a fairly valued but bullish outcome in which fee rates remain solid, real assets performance holds up, and the business continues to convert growing AUM into stable profitability. See why 4 investors see Cohen & Steers as 10% undervalued. Result: Fair Value of $76.33 (UNDERVALUED) Still, Cohen & Steers faces two clear pressure points if this narrative breaks: weaker real-assets fund flows and rising distribution costs that squeeze profitability. Find out about the key risks to this Cohen & Steers narrative. That 10% undervalued narrative meets a very different conclusion once the SWS DCF model is applied. On that cash flow view, Cohen & Steers has an estimated value of about $56.02 per share, which sits well below the current $68.98 price and points to an overvalued stock instead. This gap between a fair value of $76.33 from the narrative and $56.02 from the SWS DCF model highlights real valuation uncertainty. It raises a simple question for investors: Which set of assumptions about future cash generation feels more realistic to you? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Cohen & Steers for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 33 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Mixed messages around Cohen & Steers can make sentiment feel muddled. Move quickly, review the numbers, and pressure test both sides of the story by weighing 2 key rewards and 2 important warning signs. Do not stop at one asset manager when there are other opportunities worth a closer look through focused stock lists built from clear, transparent data. - Target resilience in tougher markets by scanning a curated group of companies with stronger finances through our 32 resilient stocks with low risk scores. - Hunt for potential value opportunities by reviewing companies that pair quality fundamentals with pricing that may look appealing using the 33 high quality undervalued stocks. - Broaden your income playbook by assessing businesses that offer higher yields and appear built for ongoing payouts across the 8 dividend fortresses. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CNS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. - Adjusted EPS: $0.89, up from $0.85 in Q2 2026. - Net Income: $46.5 million, up 6% quarter-over-quarter and 11% year-over-year. - Revenue: $156 million, up 3% quarter-over-quarter, driven by higher average AUM. - Operating Margin: Expanded to 37.2%, reflecting higher revenues and controlled expenses. - Operating Expenses: $98 million, up 2% quarter-over-quarter, due to higher incentive compensation accruals and lower G&A costs. - Assets Under Management (AUM): $95.9 billion, down from $100 billion last quarter; average AUM rose to $101 billion. - Net Inflows: $1.6 billion, fifth consecutive quarter of organic growth and strongest since Q4 2021; over 6% annualized organic growth. - Institutional Pipeline: Increased to $1.9 billion from $1.6 billion last quarter; second largest ever. - Wealth Channel Net Inflows: $1.3 billion. - Institutional Net Flows: Modestly positive at $49 million. - Active ETF AUM: $1.3 billion, up 22% during the quarter. - Multi-Strategy Real Assets Inflows: Nearly $900 million year-to-date; open-end mutual fund AUM reached $2.1 billion, up from $150 million in 2020. - Expense Guidance: Compensation and benefits ~40% of revenues; mid-single-digit G&A growth vs. 2025; pro forma effective tax rate of 25%26%. - Warning! GuruFocus has detected 3 Warning Sign with CNS. - Is CNS fairly valued? Test your thesis with our free DCF calculator. Release Date: October 16, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Cohen & Steers Inc (NYSE:CNS) reported adjusted EPS of $0.89, up from $0.85 in the prior quarter. - Cohen & Steers Inc (NYSE:CNS) generated $1.6 billion of net inflows, marking the fifth consecutive quarter of organic growth and the strongest flow period since Q4 2021. - Cohen & Steers Inc (NYSE:CNS) operating margin expanded to 37.2%, demonstrating operating leverage. - Cohen & Steers Inc (NYSE:CNS) institutional pipeline increased to $1.9 billion, the second largest ever, with broad diversification across strategies and regions. - Cohen & Steers Inc (NYSE:CNS) investment performance improved significantly, with 74% of AUM outperforming in Q3, up from 40% in Q2, and 97% and 98% of AUM outperforming over 3 and 5 years, respectively. - Cohen & Steers Inc (NYSE:CNS) assets under management declined to $95.9 billion from $100 billion last quarter due to negative market movement. - Cohen & Steers Inc (NYSE:CNS) experienced negative market movement, primarily in September, driven by rising long-term Treasury yields above 5%. - Cohen & Steers Inc (NYSE:CNS) expects approximately $400 million in partial account rebalancing outflows from two institutional clients in the coming periods. - Cohen & Steers Inc (NYSE:CNS) faces near-term pressure on its asset classes from higher interest rates, which have weighed on REITs, listed infrastructure, and preferred securities. - Cohen & Steers Inc (NYSE:CNS) may face challenges in gaining broader distribution for its nontraded REIT, as real estate remains a less favored strategy among wirehouses compared to infrastructure and private credit. Q: With rates likely moving higher, what gives you confidence demand for real estate can sustain? What are the differences between conversations with financial advisors in the wealth channel versus institutional investors and consultants?A: Jon Cheigh (President, Chief Investment Officer) noted that investor tone has not notably changed, as real estate has been in the "doghouse" from 2022 to 2024, but improving rental growth and fundamentals are giving investors greater confidence. He emphasized that winners and losers within real estate will differ this cycle, and it's about picking new winners rather than just getting beta. Joseph Harvey (CEO) added that institutional allocations are deliberated over roughly nine months, and the won and unfunded pipeline has been strong for five quarters, hitting its second-best all-time level. In the wealth channel, average daily flows increased in each month of the quarter (July, August, September), with no real impact from recent macro changes. Q: On infrastructure, are you seeing allocators move from private infrastructure to listed because of liquidity or slow distributions? Are you considering a semi-liquid infrastructure product for the wealth channel?A: Joseph Harvey (CEO) stated that growing interest in listed infrastructure is not coming at the expense of private infrastructure, but rather allocations to private infrastructure are leveling off in acceleration. Investors recognize that combining listed and private can yield better results due to sector diversification, management team access, and out-of-phase return cycles. He believes infrastructure remains in a bull market driven by capital investment cycles related to AI and power. Regarding a semi-liquid infrastructure product for wealth, he said something is "in the lab" but not ready to discuss, and the firm remains focused on its nontraded REIT, CNSREIT. Q: How much of the recent performance and pipeline in your REIT and infrastructure strategies depends specifically on AI and data center demand? If AI CapEx were to slow, how exposed would the flows be?A: Jon Cheigh (President, Chief Investment Officer) explained that data centers are roughly 10% of the US real estate portfolio, mostly existing assets rather than new development, so exposure is limited. On the infrastructure side, there is less direct exposure, but roughly one-third of the infrastructure business is in utilities, where earnings growth has stepped up from about 4% to 7%-8%, partly due to power generation needs including AI and data centers. He noted that if certain stocks sell off on growth concerns, it would not have a short-term direct impact on the infrastructure layer, and real estate and infrastructure offer a good risk-reward way to play AI and compute demand. Q: On private real estate, when do you think we could see an acceleration or organic growth there? Is there an advantage to being a newer platform when competing against legacy brands?A: Joseph Harvey (CEO) said CNSREIT, the nontraded real estate vehicle, continues to have among the best performance in its peer group and is the number one performing nontraded REIT since inception, based on a thesis around open-air shopping centers, grocery-anchored centers, and power centers. The portfolio has about $900 million in total assets with roughly $400 million in equity value, and the firm will hit its three-year track record in January, making it more viable to get platformed at larger distributors. Most capital has been raised from endowment-type RIA firms. Wirehouses still favor infrastructure and private credit over real estate, so broader take-up will require further cycle progression. He also noted that capital has flowed into apartments and industrial, which will face pressure from the current rate environment, potentially creating great investment opportunities for Cohen & Steers' private team in two years. Q: Could you give more detail on the SICAV lineup, including where demand preferences are by region, relative fee rates, and any differences versus the US wealth channel?A: Joseph Harvey (CEO) said the offshore SICAV business had its second-best quarter in Q3 2026, following its best quarter in Q2 2026, with about $2.1 billion in overall AUM. The firm is seeing good activity in the UK, South Africa, and increasing activity in Asia. In markets like South Africa, the wealth and advisory businesses are developing, and advisors are being educated on more global asset classes, creating an opportunity to educate on real assets. Asia is the most rapidly growing wealth market in the world, though more complicated. Based on this success, Cohen & Steers plans to invest more in sales professionals and data to expand in this area. Q: What is the timing of converting the institutional pipeline, and what is the composition of what's in it?A: Joseph Harvey (CEO) stated that the life cycle from pipeline to funding is roughly four months, while getting into the pipeline can take anywhere from a short time to years. The composition is very diverse across US real estate, global real estate, infrastructure, and multi-strategy real assets. He noted more global allocations in real estate recently, a shift from the period of peak US exceptionalism. The Tactical Real Estate Fund is also part of the pipeline, with interest from institutions that own core property funds (ODCE funds) seeking better core real estate allocation through returns, diversity, and liquidity. He emphasized that inflation is now embedded in the economy and psyche, making inflation-sensitive allocations strategic for investor portfolios. Q: Can you discuss the firm's active ETF strategy and the launch of the Cohen & Steers Real Assets Active ETF (CSRA)?A: Joseph Harvey (CEO) highlighted that the firm launched its seventh active ETF in August, the Cohen & Steers Real Assets Active ETF (CSRA), an actively managed multi-strategy real assets portfolio offering inflation sensitivity, long-term total returns, and diversification. Adoption of active ETFs is accelerating, with growth of 22% during the quarter to $1.3 billion. Industry-wide, US ETFs have taken in a record $1.5 trillion so far in 2026, beating the full-year record set in 2025. He believes active ETFs offer compelling solutions with tax efficiency, attractive expense ratios, intraday trading, transparency, and a track record of alpha generation that passive cannot offer. The firm continues to review options for the next phase, which may include more core strategy launches, ETFs as a share class for existing funds, and potential international vehicles. Q: Can you provide an update on the preferred securities strategy and its performance?A: Joseph Harvey (CEO) noted that preferred securities had its third consecutive quarter of net inflows, with low duration preferreds being the standout. He described this as a compelling environment as advisors look for income without meaningful rate risk. With yields near 6%, he believes it is one of the best risk-adjusted For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Investment management firm Cohen & Steers (NYSE:CNS) will be reporting results this Thursday afternoon. Here's what to look for. Cohen & Steers beat analysts' revenue expectations last quarter, reporting revenues of $152.7 million, up 12.2% year on year. It was a mixed quarter for the company, with EPS in line with analysts' estimates. Is Cohen & Steers a buy or sell going into earnings? Read our full analysis here, it's free for active Edge members. This quarter, the market is expecting Cohen & Steers's revenue to grow 10.6% year on year, improving from the 6.4% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Cohen & Steers has missed Wall Street's revenue estimates multiple times over the last two years. Looking at Cohen & Steers's peers in the capital markets segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Goldman Sachs delivered year-on-year revenue growth of 23%, beating analysts' expectations by 11.5%, and Jefferies reported revenues up 8.5%, topping estimates by 1.1%. Jefferies traded down 1.3% following the results. Read our full analysis of Goldman Sachs's results here and Jefferies's results here. Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the capital markets stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.5% on average over the last month. Cohen & Steers is down 7% during the same time and is heading into earnings with an average analyst price target of $74.67 (compared to the current share price of $68.89). ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who's building AI, one company is already using it to print money. And nobody's paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won't last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.

The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how custody bank stocks fared in Q2, starting with Cohen & Steers (NYSE:CNS). Custody banks safeguard financial assets and provide services like settlement, accounting, and regulatory compliance for institutional investors. Growth opportunities stem from increasing global assets under custody, demand for data analytics, and blockchain technology adoption for settlement efficiency. Challenges include fee pressure from large clients, substantial technology investment requirements, and competition from both traditional players and fintech firms entering the space. The 16 custody bank stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.2%. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Founded in 1986 as a pioneer in real estate investment trusts (REITs), Cohen & Steers (NYSE:CNS) is an investment manager specializing in real estate securities, infrastructure, real assets, and preferred securities for institutional and individual investors. Cohen & Steers reported revenues of $152.7 million, up 12.2% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a mixed quarter for the company. The market seems disappointed with the results as the stock is down 8.2% since reporting and currently trades at $74.41. Is now the time to buy Cohen & Steers? Access our full analysis of the earnings results here, it’s free. With over $100 billion in assets under management and supervision, Hamilton Lane (NASDAQ:HLNE) is an investment management firm that specializes in private markets, offering advisory services and fund solutions to institutional and private wealth investors. Hamilton Lane reported revenues of $275.3 million, up 56.5% year on year, outperforming analysts’ expectations by 21%. The business had an incredible quarter with a beat of analysts’ EPS and AUM estimates. Hamilton Lane delivered the biggest analyst estimate beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6.8% since reporting. It currently trades at $88.42. Is now the time to buy Hamilton Lane? Access our full analysis of the earnings results here, it’s free. Operating as both an advisor and asset manager with over $100 billion in assets under management, StepStone Group (NASDAQ:STEP) is an investment firm that provides clients with access to private market investments across private equity, real estate, private debt, and infrastructure. StepStone Group reported revenues of $300.6 million, up 26.6% year on year, falling short of analysts’ expectations by 3.9%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA and AUM estimates. StepStone Group delivered the weakest performance against analyst estimates of the whole group. As expected, the stock is down 5.8% since the results and currently trades at $47.39. Read our full analysis of StepStone Group’s results here. With roots dating back to 1935 when it pioneered the first mutual fund with an objective of capital growth, Invesco (NYSE:IVZ) is a global asset management firm that offers investment solutions across equities, fixed income, alternatives, and multi-asset strategies. Invesco reported revenues of $1.33 billion, up 20.3% year on year. This print met analysts’ expectations. It was a satisfactory quarter as it also produced a solid beat of analysts’ EBITDA estimates. The stock is up 4.2% since reporting and currently trades at $31.39. Read our full, actionable report on Invesco here, it’s free. Founded in 1968 as Simulated Environments Inc. to train bank loan officers using computer simulations, SEI Investments (NASDAQ:SEIC) provides technology platforms, investment management, and operational solutions for financial institutions, wealth managers, and investors. SEI Investments reported revenues of $641.6 million, up 14.7% year on year. This result surpassed analysts’ expectations by 0.7%. It was a very strong quarter as it also put up a beat of analysts’ EPS estimates and AUM in line with analysts’ estimates. The stock is up 7.1% since reporting and currently trades at $105.75. Read our full, actionable report on SEI Investments here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

A month has gone by since the last earnings report for MSCI (MSCI). Shares have lost about 1% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is MSCI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. MSCI reported second-quarter 2026 adjusted earnings of $4.94 per share, up 18.5% year over year. The figure beat the Zacks Consensus Estimate by 0.82%.Revenues increased 12.2% year over year to $867 million and surpassed the consensus mark by 0.90%. Growth reflected higher recurring subscription revenues and asset-based fees. The retention rate improved to 95.3%, while period-end AUM in ETFs linked to MSCI equity indexes reached $2.818 trillion.Recurring subscription revenues rose 9% year over year to $613.4 million. Asset-based fees advanced 26.6% to $233.1 million, benefiting from higher AUM in ETFs and non-ETF indexed funds linked to MSCI indexes. Non-recurring revenues declined 20.5% to $20.5 million. In second-quarter 2026, Index revenues of $511 million increased 17.5% year over year. Recurring subscriptions and asset-based fees rose 11.6% and 26.6% on a year-over-year basis, respectively. Non-recurring revenues slipped 1.3% year over year. Organically, Index’s operating revenue growth was 17.5%.The segment’s adjusted EBITDA rose 20.5% to $397.8 million, and its margin expanded to 77.8% from 75.9%. Index run rate reached $2.027 billion, up 17.4%, supported by market-cap-weighted and custom index products across client segments and regions.Analytics’ operating revenues of $189.4 million increased 6.6% year over year, aided by growth in Equity Analytics and Multi-Asset Class products. Recurring subscription revenues jumped 9.5% and non-recurring revenues decreased 55.7% on a year-over-year basis. Organically, Analytics’ operating revenue growth was 7%. However, adjusted EBITDA fell 5% to $88 million as expenses grew faster than revenues. The segment’s margin contracted to 46.5% from 52.1%.Sustainability and Climate revenues rose 3.4% to $91.9 million, while adjusted EBITDA increased 12.3%. While recurring subscriptions increased 4% year over year, non-recurring revenues declined 26.3% on a year-over-year basis. Organically, Sustainability and Climate operating revenue growth was 3%. The segment’s adjusted EBITDA rose 12.3% to $35.6 million, and its margin expanded to 38.7% from 35.6%.All Other – Private Assets operating revenues, which primarily comprise the Real Assets operating segment and the Private Capital Solutions, were $74.7 million, up 4.9% year over year. Organic operating revenue growth for All Other – Private Assets was 4.4%. However, adjusted EBITDA fell 14.1% to $17.1 million. The segment’s margin contracted to 22.9% from 28%. New recurring subscription sales increased 1.9% year over year to $76.6 million. Subscription cancellations declined 7.3%, helping net new recurring subscription sales grow 8.4% to $47.5 million. Total net sales decreased 1.4% because of weaker non-recurring activity.Index net new recurring subscription sales surged 40.5% to $28.1 million. All Other – Private Assets also delivered a 57.5% increase. These gains were partly offset by declines in Analytics and Sustainability and Climate, where net new recurring subscription sales fell 24.3% and 62%, respectively. Total operating expenses increased 9.2% year over year to $379.5 million. The rise reflected higher information technology, market data, professional fees, occupancy and compensation costs. Expenses also included amounts related to the Compass, Vantager and PM Insights acquisitions.Operating income grew 14.6% to $487.5 million. The operating margin improved 120 basis points to 56.2%, while adjusted EBITDA advanced 13.5% to $538.5 million. The adjusted EBITDA margin widened 70 basis points to 62.1%, reflecting revenue growth that outpaced adjusted costs. As of June 30, 2026, cash and cash equivalents stood at $356.4 million, while total principal debt was $6.4 billion. The debt-to-adjusted EBITDA ratio was 3.1 times.Net cash provided by operating activities increased 10.3% year over year to $370.8 million. Free cash flow rose 8.2% to $326.4 million.MSCI repurchased $145 million of shares during the quarter and paid about $149.2 million in dividends. MSCI raised its full-year operating expense outlook to $1.535-$1.575 billion from $1.490-$1.530 billion. Adjusted EBITDA expense guidance increased to $1.340-$1.370 billion from $1.305-$1.335 billion, reflecting acquisitions, stronger index-linked AUM and additional growth investments.The company now expects net cash provided by operating activities of $1.655-$1.705 billion and free cash flow of $1.485-$1.545 billion. Interest expense is projected to be between $282 million and $286 million, while capital expenditures are anticipated to be in the range of $160-$170 million. In the past month, investors have witnessed a downward trend in fresh estimates. At this time, MSCI has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a grade of F on the value side, putting it in the lowest quintile for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, MSCI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. MSCI is part of the Zacks Financial - Investment Management industry. Over the past month, Cohen & Steers Inc (CNS), a stock from the same industry, has gained 0.9%. The company reported its results for the quarter ended June 2026 more than a month ago. Cohen & Steers reported revenues of $152.73 million in the last reported quarter, representing a year-over-year change of +12.2%. EPS of $0.85 for the same period compares with $0.73 a year ago. For the current quarter, Cohen & Steers is expected to post earnings of $0.89 per share, indicating a change of +9.9% from the year-ago quarter. The Zacks Consensus Estimate has changed 0% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Cohen & Steers. Also, the stock has a VGM Score of F. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MSCI Inc (MSCI) : Free Stock Analysis Report Cohen & Steers Inc (CNS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research