Cohen & Steers (CNS) 26 Jan 232022 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Cohen & Steers Fourth Quarter and Full Year 2022 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions]

conference recorded, this XXXX. January reminder, a is Thursday, being XX, As Cohen would the President Senior of turn like and Steers. over Counsel I to Heller, conference now to Brian Corporate & Vice Please go ahead.

full welcome And & quarter conference the Thank year you. earnings to XXXX Steers Cohen fourth and call.

Chief Investment are Cheigh. Officer, our our Officer, Stadler; Matt Joe Executive me Officer, and Jon Joining Harvey; Chief Financial our Chief

materially believe comments XX-K actual include quarter factors, including and to and to filings. want our remind differ annual We statements I presentation, forward-looking answers may those fourth earnings your questions number us, year some based recent our you accompanying reasonable and other to and of release SEC our to available due full our statements. a on outcomes these Form described on are currently that information of could most in report but

We or offer assume our fund update an of to of securities investment constitute offer or forward-looking solicitation none Further, any other the vehicle. any statements. no buy the duty to of sell statements to an

financial in referred GAAP Our These contains non-GAAP financial performance. evaluating are be financial meaningful we our measures presentation in our adjusted to as, should non-GAAP measures conjunction measures also with that read as believe results.

these in are and website our presentation, of as filings as Relations financial presentation reconciliation well www.cohenandsteers.com. available. SEC non-GAAP in earnings Investor release included available and release A to section to measures at reasonably the earnings is The the extent the links of our

over Matt. the call turn will I to that, With

of morning of release will pages earnings be adjusted presentation. adjusted our everyone. XX Consistent GAAP results XX on with can Thank the and XX quarters, results. and to you, remarks of as previous morning, on through slides earnings XX Brian. this as my on the focus found A reconciliation Good

from million year’s in to quarter, under the we $X.XX $X.XX $XXX.X of year’s quarter and primarily for compared vehicles. quarter the $XXX.X management sequentially. million the share, The third earnings prior lower $X.XX compared types all was of Yesterday, in in quarter with $XXX.X reported assets across million the Revenue three was revenue and average per with prior sequentially. decrease investment attributable

points basis year’s effective in XX.X% quarter, XX.X fourth million the quarter in basis $XX.X third rate points was with XX.X% income our was million decreased XX the quarter. to compared and in in the million with operating margin last compared Our prior the Operating fee quarter. sequentially. And $XX.X $X.X from quarter,

distribution and Compensation expenses quarter compared primarily in the quarter, quarter, and expenses, actual result, when lower service reduction the XX.X% X.X% third benefits a for lower decreased in with the and and offset third fees. in the compared incentive with fourth compensation decline the expected quarter. to more Expenses be due to benefits reflect when to fourth primarily amount ratio to due lower sequential compensation a was by reduction compensation the than to This as and revenue, revenue paid. the was were

the ratio year, funds. of points average decrease to last primarily of due management in XX.X%, from guidance increase the to And basis and open-end XX compensation U.S. was quarter’s revenue XX.X%. under the For in fees distribution service was assets an lower

forecasted lower tax basis rate of for bring cumulative was effective XX.XX%. for due to effective last XX.XX% than compensation increase primarily Our to an from adjustment guidance the of effect non-deductible income. rate points portion of XX The which of included on to year, rate, the was higher quarter tax pretax the executive the the a XX.X% quarter’s

trailing liquid Page four the earnings treasury XX forth current cash, U.S. our sets investments and for seed and of cash quarters. presentation the corporate in equivalents, investments securities

totaled $XXX.X last million with at quarter. liquidity Our $XXX.X end, compared full million quarter

funding our from capital as business real estate on intensive, business launches private and capital our scales. the upfront in closed-end and co-investing various grow As rights vehicles with calls, more making firm strategies seeding become has offerings, vehicles, uses associated new infrastructure previous costs and mentioned range one-time potential our fund to of investments

Our technology infrastructure related of new City associated in New that. and York build-out headquarters the corporate example is and an

to financial to credit this announced provide senior order earlier $XXX we week, these pursue In opportunities, us we unsecured the revolving with that three-year for arranged asset. flexibility million

repay debt-free, long-term needs we capital Consistent philosophy, know, as that meeting it you operations intent As for have would the with cash our from credit under soon commitments practical. facility historically to organically. our any and amounts be with been as

billion $X.X at billion, $XX.X of at December slightly September by partially XXst, Assets to up increase billion market distributions under of $X.X The due and net $X.X offset billion were XXth. from was billion. management $XX.X of appreciation outflows

declined pipeline under institutional XXXX. update management -- million, our declined distributions unfunded $X.X mandates. XX, flows $XX to of billion $XX.X will from on billion to was an decrease due billion. be of Joe market Assets net providing Harvey and $X.X of and The December $XX.X awarded outflows of depreciation

me Let discuss items to a consider briefly XXXX. for few

revenue management the expected below occur our about regarding decline to being we ratio, revenue First, from XX% compensation capital. XXXX’s assets approach average our human a will anticipated management that year-end intend with towards under to balance disciplined assets under

from distribution investments impact making expense investment addition buyers. in We order year controlled business In most to to our public expand our increase the maintain our in the stock efforts, to strong new private and and of our in and performance. broaden product importantly, our amortization, higher full increases XXXX programs, on plan compensation salary

we ratio to result, XXXX. our compensation-to-revenue a expect XX.X% XX.X% the to increase from in As reported

million of XX% increase with our costs from XXXX to associated to G&A Americas. increase relates this new at XXXX. reported headquarters Avenue of corporate in the Next, majority The we to $XX.X the expect XX%

expect would to G&A we to X% costs, lease these Excluding X%. increase

state-of-the-art economic are our in environment By relocating XXXX, at more next-generation we to favorable working able expand footprint creating terms. a to

expand make our the and to and intend efficiencies capabilities, our in implementation XXXX upgrades addition, of infrastructure technology, security. will migration during incremental we that systems and cloud In investments add existing new to our including

conferences XXXX entertainment increase normal and expect will in more travel costs we business that in as resumes travel And to levels. sponsored

Finally, rate effective we XX.X%. our to increase expect that tax will

-- it to to our Officer, over turn discuss like Cheigh, Now to Chief investment Jon Chief Financial I’d performance. our Investment

and Matt, in areas; briefly quarter; major Today, our scorecard; I’d performed investment first, how you, cover asset performance classes good like finally, our our three Thank and second, the morning. to outlook. XXXX

and our In focus real particular, both and estate REIT I and topics initiative to and public public expect as estate. on non-traded on we real be estate research want and a leader recent to view clients real market redemptions how to across private private providing our such to advice perform,

outperformed nine Turning to their benchmarks. performance. In the of strategies fourth quarter, four core

nine XX of months, past strategies outperformed. eight the Over

ultimately in by While in than average strategy quarter lower generally all to magnitude the modest the our was normal, strategies year. batting that of related was the outperformed underperformance and

And here occasionally basis small the lagged AUM, weightings a during happens, year of The annual estate and track rectifying real are top stocks, outperforming record was underperformance XX% and is XXX-plus XX-plus has the our decline had on in back. is record, biggest real the by from estate the of strategy, of their concentrated our a a which priority. last bank bounce quarter. track while of fourth This year a key alpha. points U.S. investment driver our a quarter Measured strategy focused has one-year had portfolios basis, greater XX% performance decline more which

AUM quarter. from basis, XX% On is outperforming, five-year our four a quarter. XX% last of XXX% slightly or a XX% AUM competitive last our which of three-year open-end Morningstar, is is down five from stars From fund by rated and perspective, up

global equities recovered with the risk up quarter, Aggregate Global Barclays up broadly assets For and the X.X% X.X%.

up excuse resource securities infrastructure international led Our X.X%. real up Then up core natural preferred REITs global asset X.X% classes interest, preferred XX.X% up were core and estate and me, by up XX.X%, by U.S. X%. listed

Digging X.X% well, beating under perform equities details, fixed deploying performance negative to infrastructure in the performing beating equity global only handily very year-to-date the into This year, but continued U.S. broader income down indices. modestly and narrowed performance revenues. to

Subsector quarter trend, roads the and underperforming but such such or the subsector. plays the railways as ending performing quarter reopening in best energy pipelines subsectors level reversed fourth with as performance started cyclical and was the as earlier airports its year high, Midstream outperforming. toll still during

supported occurred remain when began volume Deceleration in pause CPI China reopening preferreds, growth inflation also the likely the weather a outlook readings Bank They income COIVD For Central November the markets in better inflation. prices, report December. Banks warm price based Hike and Central the the change. priced markets to winter on risk included. Overall, falling in in policy energy fixed subsequent profile reward and

and saw way retail real XX% XX% while dollar, U.S. REITs dynamics, as The international real the in while from were only X.X%. to dispersion residential including self-storage the up were a led significant same XX%, up X% their REITs such sectors sector of XX.X%, For down estate, weakening U.S. with to estate U.S. benefiting quarter.

of Hong If global levels similar global the be can shift for and continue, Australia incrementally in trajectories performance strengthened to re-openings, REIT. of case Europe combined with XX% of see diversification saw economic provide. COVID investment expect XX% expense estate we it dispersion can to would XX% at has the and investors U.S.-only divergent markets Kong markets Phase more and real this respectively. I either or and more Global the XX%, real allocate with estate, up to

at average come new we we quarter will does down, us high continue that the be for experience will get XXXX? So will think rule. we to that order likely believe level to stabilize At where an position which year-end, around In the generally by will X% level, while the positive, to a it but was recession. inflation prove there,

and bit rates our the Last, With cycle our they classes are year a in asset backdrop, returns end interest should XXXX. the the we positive higher that for transitioning over see think we long-term to by early of time, of than that economy be as all today. where

we balance Meanwhile, gradually Bank’s very value, moving remain expanded fundamentals issuers are see strong, up, very asset the but with from higher environment. very very For net loans levels. particularly interest low of into preferreds, non-performing coupled and the our have good rate margins sheets.

expect total returns in So from we preferreds, potentially double-digit XXXX. would

sensible, early line but infrastructure asset it is plus expect the we benefits in phase XXXX, a phase. conviction is in multiyear global with continue count we table equities. a new don’t economically more role infrastructure, new in than perform in strategic class class to inflationary its Despite the tied pricing of means will cycle our its to Those for the performs businesses For of typically demand the in even less infrastructure environment. to rather just the that, because help asset well, on long-term mechanisms normal criticality inflation are regime single in where the

increased generally of re-priced class contrast, quickly the asset they XXXX, biggest to to were roughly lagged down private deal real listed chain real declines. estate In reported we class values environment. as as how REITs volume asset see the estate, as In U.S. in our terms macro tend historically be XX%

For Index of the example, total private Odyssey real X.X% a XX%. minus listed NCREIF measure of of versus return estate [ph], REITs positive had a

expect this In estate, was of shift trend what we XXXX, started. consistent actually listed cycle. early to listed while listed NCREIF private already reverse a we forward real REITs outperforming with In transition outperforming X%, to has were QX, up with normally This see in down private X%.

well XX.X% performed average, these recessions. Historically, and in declined Because on following estate XX.X% have returned recovery of months notable recession average remarkably a lags, periods. recession. the XXXX, XX.X% cycle after XX specifically a months listed XX XX REITs months on average after on early real after REITs a Since private have

and leading different private tactically investors portfolio the listed two real and and times of asset at assemble understanding the can allocate more classes. across lagging By efficient markets, much behaviors a estate

and why integrated is And and been need investors experts, We the private. out have around we last but we years the listed research both estate to real advice have business. build our and over solutions believe and for models intersection committed vantage this strongly frameworks, provide help believe be always REIT them this better our investors public real point positions estate us of allocators. advice to at and to guidance We that private two

news the sharing been views non-traded and example, on an recently our which the redemptions, have been we REIT recently. have in As thoughts

reflect to redemption estate are economic risk. leverage designed for from X% estate protect response do the We of see commercial scenario also to broad holdings these the materially real liquidate discounted funds to $XX a boosting represent do redemptions MTRs trillion or and real in First, limits elevated market. unwind prices having retentions. or estate selling significant not The funds to redemption not requests. or real only panic meet systemic disorderly

real and from or are rebalancing returns opportunity to The seeking are the away one redemption exists systemic simply in REIT for the is prices non-traded crashing. story out are into listed investors real other asset classes, It private estate estate. that We not of that rebalancing the commercial and including believe pivot of risk underscores investors believe listed higher potential activity they expensive estate. is real

call With that, let me to turn the Joe.

and our XXXX yet you, have we will measured I first represents discuss quarter of Jon, business of fundamentals regime what corporate a in The on, weak, greatest career. macro our hopefully fourth the fundamentals by I Thank fourth climax the review then focus was characterized follow and morning. my the good quarter as change that with priorities.

If the first a regime to be to prices, after follow. half where will has reactions the the of XXXX then next asset new mostly of phase financial the start cycle return quarter the the fourth reflected investor can of hopefully, change, transition resetting

record overall. to long-term and allocations. our by listed Notably, active with strong real global does be to XX%. Our market change share, estate expand strong investor One win open-end continues remain global U.S. quarter investment in continues real our as at most real estate, positioned infrastructure, measured funds notable and we estate not well performance to U.S.

in an market. very attractive broadest arguably performance and to the offering managers market in investor what of of alternative to remain share reflects as range more strategy preferreds asset our of to source has XX%, views income. strategies preferreds the and preferred the Our is which response vehicles in We competitive, thanks declined

the net our for by to fourth treasuries. and time asset Even outflows strategies by reallocations of though been in experienced quarter $XXX classes first billion, Firm-wide notably, but million, the the preferreds prompted of markets $X.X in quarter as returns, outflows at outflows. had cash such rallied in the all core all our positive tax primarily year-end led were ever, and dynamics quarter already and selling had broader and loss the

outflows Preferred out. billion $XXX and fund, Steers outflows $X core low-duration dominated Fund preferred mutual had and totaling with funds our Income million. Cohen preferred mutual Securities Open-end Both & our fund

our fund, large the Shares allocator a Steers of which Realty we of And last outflows U.S. million, $XXX REIT quarter. had by completion flagship Cohen included the that & redemption mentioned

real Our Fund, of $XXX opportunistic had fund, Securities Estate which a & Cohen Steers million broader mandate estate inflows. has Real

UMA we fund our the had the SMA and segments other SICAV for and vehicles by into category and open-end our Flows small inflows of from XXth were in our U.S. quarter offshore but straight vehicles comparison, outflows

$XXX had advisory Institutional of outflows million.

as been from subsided, light investments clients trimming While and various funding $XXX has private overall redemptions rebalancing from COVID-driven opportunistic benefits, asset portfolios commitments investment existing of for owners such needs million. have and market Outflows movements. totaled

four $XXX had million we mandates for fund. fund mandate pension quarter, European corporate largest total from four a the a being a estate global real In across new million of the $XXX strategies,

in technology million which sub-advisory was The strength Japan Sub-advisory inflows. with Japan million. ex-Japan the $XX of dollar out the U.S. slightly continues its at sub-advisory million, $XXX positive trend to inflows netted to after $XX distributions. contributed growth of and rotation and

as forward our partners celebrating activity Management. Daiwa increased see reopen key to marketing to look in with the XX-year with and Japan for continues our business partner, anniversary Asset distribution expect we to country We our in XXXX

our market consistent by pipeline strategy cannot are real in private about the XX% expressed is for demand year-end, a Our designed won is pipeline the estate one quarter in recent the region was by or commentary customized at assets. be and with our $X.X in unfunded pipeline the the is completion holdings which third billion. with billion at XX% three-year private of to average emerging Asia-Pacific, end is led portfolio, complement real recently of that $XXX global expressing listed the listed existing AUM allocations compared our a of which market. strategies, million in in $X.X of cheaper

our the pace are The of layout over over next the foreshadowed table recession elements. set an will macro XX that endure To we to corporate include months months priorities, for environment seemingly daily expecting XXXX Fed the following and as will tighten announcements. the XX average by will the

that The markets monetary at of point some tightening this indicate the see we peak futures year. should

as we have of economy remain assets in root embedded anticipate expected to re-priced So return as emergence is it’s itself. a Fed easing financial with and causes cycle stagnates. and already exactly XXXX a sometime new Inflation the the should the unknowable when in system wildcard see markets

investment of global multi-strategy strategy that gain believe are infrastructure priorities, underrepresented strategies real we generally terms in will and portfolios In continue to listed asset and share.

Although well of targets infrastructure in have environment, has X.X%, with compared averaged defending very the volatile only our been current institutional allocations X.X%.

private how through slightly can has infrastructure similar correlations. to infrastructure listed complement better allocations and demonstrated returns research low Our

and opportunities. transition broadening secular continue will other our while include energy to universe educate investment offerings and We to

though down, as even under-allocated therefore, inflation come respect the to demand multi-strategy solutions. investors the for to believe assets, expect real case With inflation insurance. are expect to of risk continuing we to states inflation we We, grow

asset our solution through launch includes retirement vehicles educational focus which We customize and on expanding a our are for our institute outreach real to using customization, plans. allocations plans CIT to

from terms these and are year. preferreds, asset poised classes next cycle the to to of the over benefit return expect points we entry believe attractive we and see next In REITs

As on real return historically estate listed both should private, Jon to listed market now. cycles markets and the more so mentioned, more who and proceed investors focused allocated be are utilize

We peak at will to and REITs and debt see opportunities slower in that to to private higher than listed values real estate acquisition expect the correct XXXX XX% XX% growth. costs prices due lower

between organized implement private now and allocations customer listed Our advise firm real resources deep is estate help to solutions. and and expertise with investors on

more global are accordingly, in for preferreds seen Jon of focus ways that large invest in preferred a respect a we is have composition characterized foreign our U.S. with currency-denominated to preferreds, universe on to example, outside By of the With in business. the and outlook the looking favorable strategy we new

prices to estate. priority between we is will XX% correct real emerging strategic that should opportunities capital. With believe in sometime expectation deploy Our XXXX, we our and that private XX%, see other

Wednesday, filed our is this for statement say at can I we After several Because non-traded registration we all in are REIT, the filings Opportunities REIT. Cohen that confidential on registration, time. publicly Steers Income &

focus In private real institutional continue strategies addition, other on to we estate investment for investors.

our Finally, property and strategy help our with the real real identifying where we the geographies Rich have estate while They group Hill. capabilities by and private identify themes, best listed sectors, led cheapest. will real estate is estate integrated

Head by as position distribution a Looking priorities, of LaPointe Kimberly at built key we Wealth. recently hiring

much estate listed Our emerging in now on in adding Incrementally, non-traded for demand specifically, real distributing portfolio and focus and portfolios private. optimizing how divide staffed. core sales channel, to capabilities the real institutional fully have expanding advice the real in Asia, estate wealth REIT how we there. that with and And to are resources are assets and teams providing our the for are consistent we to between wealth

them. shifts closing, in This focused believe to organized In will on helping next we are priorities year I pursue to which the clients profile how our and and for In regime change in in between be case, and calibrating changed adapt private. highly has cycles. anticipating risk well asset versus new will the allocations return each classes, listed the include key including phase, return

in such based the roles. higher triggers respect private with the strategy ensure any a us, other we business, resourcing estate, as and regulation right set of front execute bar for success talent the to to have is new run with navigate we real to but initiatives Our have

that are for we and on layoffs, achieve and phase While shareholders. some to objectives. are our and are of this helping in announcing Change committed requires for our growth committed opportunity are we of our clients we potential clients resources, peers capitalizing their to creates our a

Operator, the listening. questions. open for for you Thank please lines

ISI. Instructions] [Operator Dunn John go Evercore comes Our from first you. ahead. Please Thank question from

open. is line Your

be fund channel, you about micro to start do in with management Thank you real off on inflow. talked outflow? XXXX the just think wealth you Maybe do very Shares -- inflowing in Realty versus wise, much. is and think estate securities outflow you going side, What to the what

in I down toward data, the as flows believe, prices that the expect with really tax on I for selling. would validates capitalizing think a John, and going recent are we you end identified, saw both you that positive so fund potential identified to I mutual tax And improved XXXX we as from for good law the -- for to and have back point mentioned, see we I open-end it mid-XX% decline there mutual funds. investors year, described. the which think be expect, year, loss bit, we shift selling to improve flows both the we entry little would I flow entry of our at as that have Well, this looking and investors last normally kind -- in started Jon points But a of complemented to REIT

Yeah.

next demand show when you definitely we two preferreds, but drag? okay it’s like on environment of -- necessarily leader, the, is, first then like do you The that. not a And less rate what think the the

There’s repeat could John, so some you stack, question. hear that? the I didn’t

Sure. step, think is like demand preferreds, the do On okay rate next environment what wise? you

double-digit of world you again, this case have some -- income always a the in laying investors Well, -- we benefits and for attractive that out with they have tax the out Jon particularly income the that. levels when on the top things consider as was the of preferreds them, preferreds. And to one that from considering fixed returns highest experienced very laid are of of

things types, income. one income rates the the at up But there. that’s of different some income change competition and still of margin for again, across the is there’s yield with the highest more So curve yields sub-segment have preferreds fixed the out across

So thinking mentioned, opportunity, capital that and what opportunity. between Jon return as double-digit a we the that are appreciation

into preferred inflows signal Fed I we think will all our vehicles. of see the once investors kind an clear that from see

you. Got

about into? say but next of the talked years, kind bit estate give NAV, real more you little think just you do private not the what effort. like develop a over a little few to union going you Can the So of it’s

Sure.

and consistent go private so try something we we really and running didn’t that better past and our for the So a team piece-by-piece. acquire with up been out we and it have to building estate build years, was philosophy, real two

kind gaining to and real And two XX% -- that we -- the this working capital I’d that but fronts, our expectations XX% have I are including momentum we all commercial prices on most will on, of with outlined year. say are we estate raising vehicles front commercial importantly, correct

going estate think we the track business, great really thing be to for considering that’s real timing we get is a sure and we record. the we about, to on our entry business a point record there’s I track us focused so right assets is are fast obsessed new that that and commence than prior started can. making so And raising with great as a really more are as we that

the So we up get the the non-traded happening overall into will is I private get going to phase are to running. are And registration, there. of momentum. real in not in said, as next some things because REIT that gaining we estate are and be our But effort

you. Got

going kind it question the think a do What the get U.S. or flows Is in in potential and takes it out years? you I is XXXX it more really to is this of infrastructure get. So timeframe?

infrastructure I that we would say most of active probably for side, institutional have. Well, it’s on areas overall the the one

been enhanced recently about in that this environment. infrastructure with searches characterize it’s there’s are it then performed pipelines by investors pipelines have. how That’s in one I’d active terms that we Our thinking are and most the of specific has and say behind of that things we that, active it. areas shadow

of a a focus bit pickup from side, all infrastructure current have administration for of a spending. gotten the we On been It’s infrastructure. little great advertisement the on wealth

flows of days in adoption the of fund terms broader into early improved. still our our So in open-end But infrastructure have think channel. a wealth I it’s

add. only would I John,

the we months So CSU certainly upgraded in infrastructure. a there, was stars And for wealth more channel fund interest are ago. our seeing five to few

obviously, And from investor have a pretty meaningful funds, of were four our stars, five in share we with go all seen interest so to can see optimism. when you we other

Got you.

down distill But growth recognizing. maybe guys it which lot So a ever you to been bit. a have little engines of

about those think the What’s now Europe what’s one wealth is East. you each -- that as the in you being U.S., think to If your of XXXX? regions Asia, like going in and in number funds sovereign Middle thing like do best regions

start Well, let me U.S. the with

is doing terms of and that of are and the the of Jon allocations considering it, business. Our some conditions help I real portfolios. impact our private really real we it, would increase of the have so biggest the say wealth able are things businesses can larger for I when business estate mandates right estate vision wealth the one channel that with in alternatives, firms of with the mentioned to being mentioned our and the weightings wealth largest by to all on

think I help really time our channel. can the in in that something wealth that’s share market

estate, global conducting real and when pipeline, with strategies U.S. are searches the -- like infrastructure you sticking our are Just look very which consistent around comments multi-strategy our investors. U.S., real the at there that is shadow assets there’s with some large portfolio, for plans pension

That Looking backwards, has not needing obviously inflation changed. protection.

institutional on overall both presence channel, U.S. the considering have and in markets think, is So it the business. biggest the of wealth our the biggest one impact the and I

going that’s what’s multi-strategy most is active in East our also to that it’s to one Elsewhere about talked estate and Middle our been and real portfolio. in the in the have of on real they Europe, we assets Europe, In in interesting have -- things infrastructure. allocating

make estate, about some in And we a real and infrastructure adopt, Korea. boost because we our to funds competition Thailand, if sales of mandates have past focus presence position. want from still coming we talked well on of demand to now calls, they is, our front were extent. begun mandates have market Asia, the but in establish mostly lesser -- and assets real are on the on for we to to going as that’s are sure mandates the type These listed that that sovereign and want Malaysia of because emerging we couple and from to Asia say won

business. overall, But based is The U.S. demand. and order of largest our size emerging is and again, kind most the on and the the Asia our presence, just based overall U.S. influential But areas of on rent East are Middle on

inning Right. And can for thing Yeah. us thing? to the a what public? of multiyear or real or rebalancing estate last one, from frame that you the couple you On are in, -- we thing in private do shift quarter that a is just a maybe think,

of on cycle, the elaborate that return am start. in going Just just Jon I let to terms to

mentioned XX%. or we was as Private, again, Well, up down John. Hey, so I last U.S. X% REITs year, earlier, think, were X%.

XX%-plus from been a standpoint. performance there’s gap a So

exactly standpoint could to one expect public no next course, again, market see XX% valued. over has and how relative has been performance months private XX% we to been XX knows terms, market close Of months in the a out. much valued probably, how between, gap outperformance the the how from But of XX that to we

significant. it’s So pretty

Of investors capital other investors advantage different of institutional of from they kinds to that of a for ability their tactical and put to are standpoint take course, have an some mode. inflow the sovereigns They for large work.

that. in So is for institutions XX of we incremental these for months, seeing are been XX that are conversations we I are to lot going this investing institutions and months similar where think and certainly have like XXXX. to A they saw able rebalance they what capital with on that,

like they miss conversations, then feel You have and get something they the opportunity. people those

things nervous advantage opportunities. bit get Sometimes are down. because position little stabilize, a they as in then they of a to going take to are things But start

If correct. they take falling position is people to transitioning to Everything we we to a better this. people are are are in advantage see don’t from want a where buy So knife Everything relative value. of volatile. think

they So I can like advantage of take institutions think for certainly it. that,

happening side. what’s about non-traded on talked REIT I look, And the

their and listed the REITs, really a last didn’t in recognizing portfolio, including XX%, XX%, something that good I down most of think that that symptom are things rebalancing a creates XX% year redemptions and went investors opportunity.

think seeing. an of activity are some are I which the side, created going the the So that’s wealth margin redemption is already at outcome so definitely think and relative we in to see I value the we been shifts

of and beyond And year? window per now, categorize the kind you Yeah. Right. the for point, how target Yeah. on that close-end of the you fund number right do have launches a last would

launches the for year. target We for don’t have a

great market. We think have we the that ideas ideas for close-end are fund

a in it It’s had happening effect you been further interest over has of one the closed. cycle that that the discounts for that. is the have along on our funds the and volatility as we rate As market now, most of things right and been closed-end But rate well narrowing. closed interest cycle get on year the been that some know, is

our fund end for infrastructure go has close to listed to these to pretty we into and once -- and easing expect the of set that NAV cycle, new tightened perhaps closer and will fully the conditions premiums get the discounts open the these go I will the example, then up and some close cycle issue up. market by to of been trading Just

right that good, investment factored So we than now, new issue have but ideas we it’s market not going other a our think before up. planning to take are into opens it’s while the

$XXX Do get you that pipeline million on some is aspiration? Got up ability was that. maybe think turning ago, and to at billion leveled over average above there then again to consistently your it to maybe point XX $X.X of about guys’ the kind next you. And and up often level then is an institutional maybe the like billion few years to years, even side, plus $X

my the not a classes. say, something that which billion last for can that our we in $X.X favorable includes years, three predict. That’s investing for asset environment it’s I’d in comments averaged

should level. real we revert environment back So assets I to and this to gets as would continue expect that that adoption the of better

when the we would something have distribution in to that. to that markets, you fact those what and I to And on think a multiple have expect our be added invested we about expanded capabilities,

being, if would normal into what get didn’t I to environment. up we ends billion $X.X in disappointed be number So know I as but don’t back billion we the $X the get that plus range

Makes sense.

with REIT reinvesting they the larger? Okay. competition? recently. the Are this profile getting competitors? I of on Are larger exiting players kind What’s question Are What’s like of people going shrinking? get your space? the

thing as Joe first share much peers grown. in mentioned, is, active the how our Well, market

of have The considerably. has away that last our that have and shrunk going two shrunk are over say first some But to am there thing is, competitors I in gone some significantly. have years, all been not the comparatives there

that or and out had so, because And space to have favor. last they there they -- or gone been players have sometimes been XX over the And then in the be would good other certainly honest, performance say, there been have I in years and competitors have favor. then then of

I some quartile, even time. lacked think over wins in consistently been has been top have the we quartile has in that who have consistently mix because we though top been

share are market we have team is because we up very performance, to our continue consistent and putting a take So healthy. consistent we platform

we our we clients are I And the in -- invest are keep we that’s invest quantitative on to the have things getting on us better. and able resources evolve needed the years we ago, that to side, So investing side, those need prospective different they our were think macro and that side, data all on the the side, see on today. very risk XX resources the in allowed people, and continue to clients and

which perspective from we channel, with in just would the a competitor. channel, of John, wealth a I new wealth the strategies add have private that, the is that on adoption

So well know. which channel. have compete while passive to our wealth against in and gaining active, open-end strategies, done have the also extraordinarily funds we you share as had we active versus versus are And peers

We channels. are competing semi-private who the firms with estate wealth real are equity private now offering or solutions and private

are private that private to estate aren’t help listed it’s us optimize do that They vehicle equity are firms to portfolios. a going private our but in So and that for is advantage create see their little channel to of try part real opportunity their that. a to going right? a we And a the the differentiated, big allocations. help vehicle is for to allocations going wealth They add advisors take not of help to that, advisors the optimize to to impetus

it’s, business wealth opportunity a investment us, on hand, challenge, channel. it’s hand, opportunity, other competitive for great for the a on So the one

Okay.

companies one, last I I getting the wealth the advisory and phase, you think about just in, over maybe broadening private picture. in in adding estate. want When be U.S. to last channel, big strategy the So management more real revamping think guys deeper of you

what’s your the for Joe, years? driving, next vision are you few that Now

thing, full in think the distribution, provider of with we today, couple positioned of on estate Starts of asset as us our performance and have in all as the and private capitalizing we at just I times, the real invested that a in multi-strategy I investments maximizing real that and that. our investor made hadn’t and our we that’s backward, in mentioned real its portfolio maximize assets looking have market to how vehicles time the a then hasn’t position potential because are we been potential. of But creating distribution look overall portfolio investment a when inflation adding have assets met share in well real

appreciate you much. very Thank Great. Much it.

queue. the remarks. Chief We I to Steers Joe & have like of for closing no turn further questions would call over in Harvey, Executive Officer to Cohen

Have Great. Well, your release to forward this morning. when April in a quarter thank great with everyone, time results. day. you, we our you look for next We speaking first

your you conference participation. today’s call. for concludes This Thank

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