Cohen & Steers (CNS) 20 Jul 232023 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Cohen & Steers' Second Quarter 2023 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] As a reminder, this conference call is being recorded, Thursday, July 20, 2023.

to President conference Cohen and like Heller, to & now Vice Senior Corporate would turn over the Brian Steers. I Counsel of ahead. go Please

Thank second & call. you the XXXX earnings conference and Steers to welcome quarter Cohen

your me statements. some Financial Matt Jon of and Chief Cheigh. our Joining Harvey; want to Investment to our Officer, our comments Officer, Stadler; Chief Joe questions are remind forward-looking our Chief I and may Officer, include Executive you answers that

on based to information duty statements available believe any of factors, these any investment of securities and reasonable Form We most annual could accompanying Further, none fund due an are but presentation, statements. us, materially constitute including an our recent to outcomes release the report other update a or currently XX-K, other actual quarter offer assume and in our the statements our to forward-looking of earnings of on second or to our SEC offer those sell differ filings. described buy solicitation to no vehicle. We number

measures conjunction also the results. earnings reconciliation website in financial well available evaluating as as to presentation, and at non-GAAP measures non-GAAP our reasonably presentation of measures These non-GAAP filings www.cohenandsteers.com. our included earnings in are release financial and read release meaningful section available. links measures referred believe GAAP is presentation Relations the to Our financial The of the extent SEC Investor to our performance. as, as in be should financial with that we our contains in adjusted are these A

Matt. over that, With to call the I'll turn

us. Good Brian. morning for you, everyone. joining Thank Thanks

$X.XX the the adjusted earnings in reported as reconciliation with to on morning share of XX the will $X.XX previous of found earnings XX quarter and compared earnings sequentially. $XXX.X first vehicles on offset remarks year's average revenue as day compared calls, in of sequentially. all presentation. be prior quarter. primarily lower results. types release and by A Yesterday, million Slides million was As through the due to the of of million can Pages on per Revenue XX our $X.XX in XX quarter on investment $XXX.X under adjusted for the across and three partially and management GAAP from quarter was the prior focus my quarter decrease year's results this one in with additional $XXX.X assets we The

million the And $XX quarter quarter. XX.X% quarter operating decreased quarter sequentially. basis mix was basis lesser in the points effective in with second under revenue income to prior they Our to as second second in first to margin adjustment Operating XX.X the our the million in was that in quarter $XX a the average XX funds primarily compensation points and due represented open-end fee quarter management the to compared year's decline assets compensation ratio. XX% did quarter The than quarter. in from was increased compared of last to a rate million $XX.X primarily the first with our portion due

entertainment to X.X% a decrease recruitment in was fees travel open-end day U.S. first and from fees The due the assets under was G&A. service and quarter. primarily by decrease lower G&A primarily the and distribution due and related management and in to lower in decreased funds distribution decrease service in non-client a offset one due additional in partially primarily Expenses fees. decrease quarter, average lower to related The expenses in to

forecasted previous points second than quarter, were XXX higher benefits primarily compared due essentially and an with for ratio our compensation guidance. recorded compensation the quarter, XX.X% months the than Although increased originally to flat revenue to bring for ended, to XX.X% lower when The the first adjustment six to ratio costs. basis to increase, severance and revenue the compensation was which revenue included the to

provided call. the effective XX.XX% with consistent our on at last remained tax rate Our guidance

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

end beginning liquidity million $XXX.X totaled million year firm million on drawn facility have credit fiscal entered and revolving Our $XXX.X the year. into we we at quarter, the compared at quarter with not $XXX last three that the of

due from our to Assets billion institutional under June up The increase and an million. awarded provide XXth, billion Joe outflows XXst. of Harvey by of at and $XX.X billion, $XXX of March partially net of $X.X mandates. unfunded on update flows $XX.X $XXX offset will market slightly management were appreciation million distributions at was pipeline

the Let consistent with benefits, the briefly year-to-date of discuss for the we at half things and expect to our respect revenue remain year. compensation second consider compensation a to I ratio me XX.X% few all that earlier. remaining With will to referenced equal, items ratio

trading to projections as order center initiatives other appending management certain new our $XX.X expect the last as Next, from The we in non a XX% strategic and of increase primarily with as relates which such to call. and G&A associated XX% based XX% on to on cost establishment than data the well X% increase noted headquarters XXXX, is system. upgrade ongoing increase lower we quarter's to our client-related reported million new of corporate expenses, our the review to

And rate we we G&A X%. costs, X% at finally, increase remain to to will would these effective Excluding our XX.XX%. expect expect tax

Cheigh, will over to Investment Officer, who our I'd Now performance. it turn our Chief to investment discuss like Jon

And remind real for you, play a I'd performed second first to how of continue Thank expect to like investors to assets it for case and role over and performance quarter. asset our the to investors classes like the Today, morning. major I'd scorecard we and why strategic meaningful time. Matt, cover second, good during our

of to versus improvement XX%. scorecard our Turning quarter's the XX% AUM a performance outperformed, quarter, our last for meaningful

months, the XX last end outperformed AUM versus of as significant the our a XX% again of improvement. For QX, XX% of

From years, XX% from perspective, open-end XX XX% last five or of which Morningstar, track four five and XX%, performance record our a remains XXX% competitive at three, our is perfect last rated quarter. fund is and marginally the by down nearly For respectively. star AUM XX%,

this performance quarter our Not advantage. nearly flagship by outperformed estate be is year. that real has and our XXX our real points class flagship estate have quarter U.S. largest global strong and demonstrated now basis points REITs, basis strategy asset the timeframe, year XXX by outperformed by XXX up where for Our the Over XXX ignored, strategy for to led we basis team our points investment competitive points respectively. and basis every was

who drive both our private, real promote our believe Our and and and standards to for culture, capability ability investment reflects and excellence. leaders recognize our We results our platform, of will deliver both develop and new future sustain to listed unique at great market estate our that position, current track our generate record scale. our clients, and

X.X% global the continued inflation X.X% with the global For which up bond equities compared risk underperformance Barclays Commodities to recovery their down declines. was their index, down X.X%. aggregate as assets quarter, notably continued

to lagging. we as creating outperformed in Global yield subsided last plus leadership the other way high XXXX year-to-date, and quite be preferred including reversal asset fixed a generally sharp anticipated sector relative energy, general up QX treasuries. versus as such on lagging were and bifurcated, value momentum equity with healthcare and call. are and classes banking X.X% greatly as utilities the munis reflecting Preferreds significantly markets the continue volatility sectors corporates, market Returns attractiveness, income tech has still our improved IG in and has leading

proposing weaker there As be us, while behind tailwind stringent funding more I banks, there said some risk are credit regulators and a will then, are significant over troubles relatively time. banks believed significant meaningful in for material we credit with and banks regulations Bank capital are factors. no

average X.X% at or subordination IG below they attractive premiums IG New the deals. wide environment. levels should and The are be for preferred good. up issuance plus prospects X.X% for returns picking is investors are at long-term given and with yields above Today

investment income our private Odyssey X% as for priority, existing S&P the by is but to roughly index, alpha the strategy last Generating performance estate more two testament professionals and our experienced Our a to the improving, dedicated one has team. investment positive three advantage team number REITs superior all been for roughly make X.X% our full sure taking real add opportunities. U.S. X%. months measured preferred plan by underperformed our the we deep so and by to outperformed and to fixed we're of over quarter

lead the up X%, quarter private approximately We lag year and end were normal the the between relationship of as REITs values then, down while At third of last have REITs US for XX%. declined by listed values Since year, were private. while the highlighted being this private were positive. reported

of the continue. of some that occurred, believe listed reversion processes trend to we will While continue this outperforming already

global versus as valued listed GFC in more If we investors of REIT the recommend a of and private underperformance basis expense the the outside pandemic. invest years attractively multiple it to the in their over market an looking is middle allocations. the advantage take last been on XX has the So of at as equities,

to sheets. fundamentals new supply, and sound power relates as REIT it occupancy, limited very remain generally balance pricing

of reminder, very and the material the than investors strategy. returns X% XX%. of rising pivoting in is equities To market. this XX is fundamentals As put worst Utilities context, versus with primary office X.X%. following lagged utilities this the XXX underperforming difficult, by sectors our in and market traditional a roughly it over REIT sector back S&P negative benchmark. to quarter only Listed X% that U.S. U.S. our of less particular in had flagship rates remain year half of first were their in years in growth by XXXX, financing outperformance And while infrastructure hurt interest total

long-term equity very markets infrastructure investors. result, a that versus of attractive for private valuations overall are and reaching extremes market the are As

inflation We allocation investors continue for return, economic of dynamic institutional and new the listed as income, infrastructure durability, combination see protection. unique a and given to total growing

in real last for on in gears of market. our time especially light estate securities real I institutional want the assets spent come case to both I in moderating, calls, preferred my inflation the Today, most portfolios. to strategic discussing Shifting finally two and back of individual earnings

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more change years. three of are a we set in significant is regime Instead, far was the and likely that early that past reaching over in it the macroeconomic stages motion

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suggests have is remained a be History once that inflation inflation leading UK’s taken issue of challenges. a stubborn even may they’ve recurring achieved. if indicator such The initial re-acceleration containment problems root,

is alone significantly is worth one’s is to long-term our risk case than present. at come this base assets the bear, if we investors not owning that real review, case While will more believe most even do inflationary risk

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investors to valued discount real because it valuations stocks. heavily inflation assets very to relates As appear today attractively risks, relative

occur today Inflation asset is real the first best major being down perhaps viewed multiple assets of positive, XXXX a we will phases as but with phase. the in and coming emergence as a expect that’s class

business case growth valuations, real significant we to driver be assets allocation inflation meaningful diversified continue attractive a for real Given over upside can of time. and the that of and assets, believe a our under meaningful

me the to turn With that, call let Joe. over

environment. and discuss to environment everyone. like business I’d our second how you, Thank fundamentals, market then the morning, and quarter good Jon, navigating review we the are

quarter challenging allocation the asset and tightening and the second for to environment more of challenging was lot nearing may declining of a than us but made, we first, cycle. be already inflation The little a less with end a transitioning shifts monetary market with the phase

would systemic Last in impair real banks valid preferred preferreds the on sector how issue quarter office we commercial banking U.S. whole. the for we the have about overstated which We with sector asset told finance foresee concerns the disruption a talked been our securities, affected didn’t commercial about classes, and you and that REITs. while estate largest that

issues on credit more abated expect has for we may While balance and now. pressure time, the sheets arise bank funding over

that believe begun prices and phase still a tightening cycle. the We as have typically U.S. bottom their as in return a listed Fed new recession REITs ends

marks preferreds its the for to in believe in as global financial depth cycle well. And also It economic like and should of valuation for still credit enter expect new shifts decline curve duration. segments with its significant inverted We has reverberations and the asset and will a as still corporate had will in recession consumer ripple higher crisis, environment the and the we signaled costs across the economy. the the We and yield This long result a some taking as slowing return not macro opportunities. this. that debt challenging, for decline together type expect but as been markets the into economy of cycle allocation private by momentum and is going out time play through phase some

Against grade. would solid give B our company I that performance plus backdrop, a

for reviewed, and put as to from compete our us in a and new performance, investment at position alphas Jon averages range Looking strong great mandates. batting good to

continue distribution While active of year have opportunities. abreast structure been searches backlog our date, of and to to is our we strong flows our enhance to organizational negative stay

executing well talent infrastructure We development. corporate are and investments on

than out return playing really we So in, front when cycle are the up. catch kicks rather already

cycle while waiting we to for building out. play the are strategically are We

sourced spectrum We income, yields, to need we their more a income, most greater fixed said, underrepresented and attractive of will to on portfolios that our allocations classes asset which based particular expect diversification That be merits in are of of believe continue to return, investor see to risk. normalized bond with elsewhere. and

asset a recently opportunity which sets private allocations published We are real we equity classes. markets asset capital and and that Equities, all analysis, indicates candidates. our investment attractive enjoy

shifts Our the outlook estate, interest with higher commodities natural years XX trend Notable volatility, pandemic greater our and global include compared outlook returns resource in with line, past and higher includes pre higher inflation equities. for expected compared premia. rates, higher the real risk

outflows the second of about In million, $XXX we as pace fundamentals. our to Turning first net $XXX the the quarter, quarter’s had firm-wide million. same

our preferred at preferred balance of XX% net a pace outflows mutual in at the fund, from our million, As preferred quarter low saw the and Cohen than flows duration first fund income strategy the June. strategy. $XXX core quarter, last preferred turned largest slower with positive yet & in and that securities preferred Steers from Notably our flagship in

and net Global of million. Pacific $XXX estate America, million bright million inflows global concentrated spot net estate. and had region, in Japan. $XXX EMEA, real into was inflows U.S. real infrastructure outflows had $XX Asia had of we By were A outflows our outflows listed whereas of in North

offset of funds, were uncertainty U.S. by which million. had $XX the in gross in XX% Open-end out, partially XXth were and with lower. than $XXX quarter funds million the funds pace inflows offshore by XXXX had fund investor Reflecting our at straight markets, open-end net their outflows in sales the U.S. XX% million of lower $XXX redemptions open-end led quarter SICAV

account terminations funding Our had of the million the for U.S. totaling preferred outflows four $XXX million. quarter were outflows. outflows million. straight offset two one Institutional open-end advisory million, by eighth drove $XXX We at net $XX account funds $XXX

and outsourced real was two funded performance strategy. an One private to CIO the change commitments. due other was in One of concentrated our terminations related a global the provider in estate

estate had improving million and now $XXX strategy, with outflows. were funding marginal multiple of across $XXX global asset or on allocation existing performance for were of These million from tweaks performing cash by is which offset accounts concentrated strategic raised We instead accounts, line real We’ve in expectations. inflows focused which in purposes. outflows generally other been our our adjustments not

inflows funds. the one of the for with mutual Management’s inflows quarter by Japan’s six channel Asset million led U.S. of quarter Daiwa in subadvisory the strongest net of was $XXX REIT

strategy, one By EMEA. the last assets Asia is listed X% multi-strategy estate, billion, Our of U.S. from XX% infrastructure. global is is real $X.X is estate, up America, domicile, XX% North XX% is and real global By unfunded pipeline and was quarter. XX% from XX% Pacific million X% $XXX pipeline real is is

were slow the $XX and competitions mandate three the totaling up One quarter. there million fundings account a quarter. quarter, are During Finals newly and million after picking of awarded $XXX in million. $XX first awarded funded a of was

As our discussed takeaways and estate, and in set activity global broad U.S. active, real and catch domicile. optimizations assets. The infrastructure are global ups last Demand The of number managers, the of protection, shifts from prospects, next quarter, for and multi-strategy cycle private markets on and of continues include from terms listed encouraging. listed real spans portfolios. underperforming and to drivers the opportunity strategies of quite return REIT estate levels real be inflation passive allocations to infrastructure activity

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as which new simple build more is our our extension to strengths. an vehicles from strategic extensions traditional of We a such believe growth. also core to strategies continue both strategies organic drive and estate, private areas we of strategy to and new These range real

next with initiatives. estate with significant characteristics use such our or generation we In options to that real income and continue developing We’ve real private completion as our terms and progress investment volatility. strategies made innovate listed strategies alter to of estate,

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are commercial income to backed mortgage developing securities our In addition, strategies. we current capabilities complement in

advisor on to priorities focusing focused distribution capitalizing and to our major market are registered our in opportunities position the wealth investment the the Our pipeline. increasing more institutional, alternatives And in include we allocations on on and participate channel.

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Operator, for your open Thank interest. you line for questions. please the

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

Your line is open. is John Dunn, your open. line

Thank you much. very

You when – the the it right more and get can so talk on about a two now you opportunity estate private rate flat opportunity side. between environment? looking public maybe bit more and further guys both the out little we both and maybe interplay a it's But you're for like sounds more those with – public now there's fee the of one real little

Sure.

allocations believe can in are increasingly to he prices market market real prices because investor foremost comments, go best today, secondarily both institutional Let market kind market if where John, wealth that whereas private and ask begun already opportunity for where set on. investors are use is you is private in what's – And strategic the the happening I'll view up in the have portfolios that's And correct. the better share listed time. of you relative the and that We in a willing declined, is that add to the this to Jon allocations. me is estate The opportunity have and is. Joe, to Cheigh and start build long and listed just Jon's in the

speak. arbitrage, So an that creates so to

some you've And in to cycles, cases access have market. That And for property best Furthermore deal real to or in would in listed estate market the market. two marginal of An market to be got opportunities. which example of markets, in opportunities opportunity that one harder different listed private at cell dollar, access opportunities. you those types centers. is, to might points want you and you with core market, have you and in In we're the on focused today, turning where points extreme access today. more is be private core to Then those the to sectors, today. at or tougher some most are the the that's have in turning data plus listed get gain towers type the be the

And private you'll now the particularly the likely find in better opportunities with in opportunistic cycle in at type we're sector. where situations,

help hiring So in see when for making opportunity got own strategies as comments, ranging both educate particular different, in private my pipeline spectrum opportunities, market. we've look us referred full the the decision what of in just our listed a to I cycle, shadow to okay, of in and different the a are our a private complement on combine and completion, with we they things pipeline, the you best as where of to the an investors, from that you are want that how lot gain And pipeline, who to our got already call our are situations. bit it, I at We've aspects – points that where those at as market. with would investors sampling, of little we

to others trying cycle. REIT the who are got time You've

as can role now to where estate are see those unique with we on And being able private bias. opportunities without private our So and side we well. the as being team, advice our provide helpful be real on

What outperformed lot U.S. to are you differences of – where the up that flows guys was And real the Got different it estate rest franchise the do that active of it. worse. and chalk channels? maybe to temperature a interesting the I demand what's see kind industry difference your thought between

with which gain versus share start active and an our enabling us that's to in Jon Well, our I'll U.S. highlighted continue active the to outperformance, peers. as manager

in has of this we Daiwa about share increased market REIT our Japan and had with flows Our led actually positive our which quarter U.S. terms But as XX%, and to impressive. Management. that is a Asset relationship subadvisory was flows, by subadvisor

noted been Japan. Our flows channel think, retail that opportunities partially of in in positive due think back for – versus terms macro that's I value And said investors invest I as I have to I oriented One five or is, thematic quarters. six factors. – in several toward shifting

at But in Management leadership Daiwa we Daiwa kind in a also vehicles as our new our really performance focusing the on Like of for exciting. U.S., periods. and these – subadvisor is that's Asset stellar. all We're that's have leader a most

REITs. we've is been about you now entry when good project, look but going. is our front. pipeline, to very for that flows that's shadow U.S. investors there activity on that thinking advising are Just difficult a Obviously, And point where at

time tell. encouraging, it's So but will

where And Japan, for maybe a while then a on do cycle view it me the distribution to definitely you bright just think mean, in Yes. now, and run we But talking are seems there. guess there's while I Right. about your more room spot I been that we're space? for to it's

that COVID, longer more institutional in that been With time. to to, area allocate more been of – period they have an wanting down area. Japan, the locked in for it's we've resources a Well, particularly been

But side ingredients assets. – allocations going of the just say a And lot I'd back ingredients by in of the be based getting to Japan. So business income to to and grow take terms and on of things. it for education the I'll we're diversification think demand is help there institutional real in I are honest, investor

is going time. we're area spend more to it an So where

Can about talked preferreds, of improved banks natural have gross that where been the about for equation redemptions how we've concerns sales maybe talk are Got about you is and hikes some. the And you. and through that then who on product? rate side And now? rapid you buyers the gross regional

has institutions rate and and very but low Well the preferreds wealth ago, began for to the part – environment allocating of that was years the catalyzed four need and investor been largest interest three starting alternative by income. and

across that a and, base my more is board. as income and earlier there the per with much opportunity fixed that So comments,

probably think that with there has that that, compared for forward, of that be to we that be been there's think mispricings I preferreds overall in to with the for as the preferreds wealth earlier bank I this allocations broader are less institutional crisis valued set. income believe where will going go fact that But the opportunities we the a fixed demand because and year, and both dislocations us there gain in opportunity channel.

about about CPX, a preferreds in opportunity double I there that X%, but total yielding approaching short mean, return would also It's it's we be is just the today strategy, digits. just flagship yield. our not could the add, term I when you look it's in at believe

– was a annualized quarter more good example return is second The the annual like X%. on where CPX

in I may And I'm that's and that's – X%, say, T-bills, view. investing free a I'm risk can hey, so getting some well,

free of credit zero. duration it it Now is risk has but a we believe,

the what So that X% that of mean? more but but that likely because does That time. means that duration zero over you're to decline getting sometimes good, is X%, is

to may go it to to be X%. may go go it go may So X%, X%, it

preferred other would So as a the in they in duration. category are assets be they the media. where X%, your in known, yield the that say every missing more don't read I – well part education appreciation range, would course, they're investors well-recognized out, be also banks, getting of X% high up or rising say be that capital issuers process, yield them X%, with show preferreds, opportunity plays as will the process that X%, tend just believe to day to people versus the about companies defaults I but of

So events. notable the of because or majority, get investment sometimes lost securities the can these universe that grade credit one preferreds, and two of are

there as to investors are a in grade. And preferreds so is opportunity high investment majority where I return need grade remind think a subinvestment with total opposed to yield opportunity we

that I that's the class was March to feel, up eight I'd confidence say the has over weeks. picked will, the meaningfully that as we said, and So April, earnest in but momentum really education and in process the the last asset certainly market, six in the if you in

Right.

were? out Okay. sales you for point you most cycle you like maybe And get return discussion. the would the about? gross talked guys maybe place Where this – to the back is of likely the they new to then that And start signposts the that can broaden sales maybe – to the just – – areas gross some

Well, the ultimately going the the that we tightening to that where help point signpost, one be biggest when a further will they're Fed things think easing if done reach along. I has and is

– but markets the the tended of seizing. you when the right a history look of the are stop in middle So know anticipatory, the so as recession fed to they've REITs, all bottom at – or we before

be has So that it process that could started.

that V-shaped. past, in not probably talked going we've be our view about this is cycle the is As to

past. period the of play so Jon’s over – could and longer out comments has time this with, a it than keeping in – the And and mine,

gross the about? excited sales And most areas you’re

research, happening if the the little it’s market. coincident in wealth them have real assets. the a the about multi-strategy you we’re – tend to it’s harder just preferreds. points U.S. there’s bit broad, institutional to to and infrastructure same be think some follow and not go analysis. the where the types in insight Hopefully, It’s writing what said, those as real website And institutional and to most at taking a global they our more you I and and cue they pipeline, real can infrastructure entry of That’s see with our from REITs because investors well channel. When deep. our that’s look will But which in estate, both activity. what’s REITs read assets. But on, little multi-strategy discount pipeline, Listed it’s founded and I

invest are assets life those are to people little there And to next be where are over Like, more interested ones are? several those could you you that a demand for infrastructure, maybe years? story the to new just like products in, mentioned going had in what the most where assets? Are bring

generally on the side side. These the mandates. for are on than is demand say I’d infrastructure, institutional So the wealth most rather new

new mandates, where our business is some new more takeaway So is but for to it business. REITs of in contrast of some REIT

a I are investors the new lot infrastructure. think infrastructure on side, of these to

are we’re different So how what successful kinds it. we’ve investing infrastructure, in them and what infrastructure, the been helping is on educate of

from, a think I diversified in frankly it’s different of lot the our So globe. demand all strategy. And parts there’s of generally more

the strategy, diversified utilities, more and our at areas are look you rail towers. bigger when within cell So

Got just you. on to quick expenses. Maybe

on little you’re reiterate a maybe stuff You how expecting? flows G&A just potentially the of you’re an you’re that bit pull talked and how in could doing about is – maybe you able stuff that, range that impact could to pause growth, but and medium like, back the what term have

Yes.

reviewing always expenses I pretty question. is been a we even process still I adept good facing have at though rigorous the a non-client think expenses. the and there. around, needs budgeted, we that’s obviously mean, it’s on We’ve focused

aren’t of kind right the there now are for forecast that are waiting expenses think some I in triggers. that

really because So as come that and should an increase, we some shouldn’t these the forward, you see but the increase things deferred would on up the impact margins open flows are in have market an see revenue. of

always been the we’re good – expenses. we’ve think I with So

this for and are – even tied be I can’t hires, that bar is to required it deferred. not but on in a The plead the new revenue to replacement growth be G&A, positions come only period, to on group high now very case has hiring. think to being also now to we’ve

Right.

getting demand, U.S., like And the there, U.S.? not specifically about referred franchise but estate any could your you from you to much guys as different talk as kind Okay. alpha versus trends the different attention real global maybe global of opportunities, –

Okay.

wealth what investor see we But an from U.S.-centric. you and lot real generally very global So global just perspective, have that’s be in channel business. a our to of It in tends more clarify is interest the institutional, to estate.

our Our global U.S. are global REIT focused. And seeing at margin. business interest be more And to there. much and and good the be our business more we fund real estate wealth tends infrastructure tends business institutionally oriented to

of just set the in what down drivers, of say be drivers. the different macro I’d look, terms the going top same are it’s to markets, In

we by a In market year. real we seeing far terms this global more pickup. Japan, I’d global estate, the like XX% place was one markets of the biggest pickup, strategy so is things inflation getting – say XX%. of Japan for prospects that market. It’s about around is estate within best so growth seeing the us year. last Japan are investment far are XX best Japan real the or excited a so is XX about are of of It’s U.S. XX% other the that

about are changes about are to Abenomics And I are phrase But say corporate capital that, in around returns more talking changes allocation. XX was makes the Japan. years optimistic slow also us we are These happen, ago, would governance that investors happen. those a to improvements in was that tossed and available seeing which that

make course, take Japan in highlighted that improves. some perhaps months, equity and this opportunity governance global of with corporate Of we’ve market some re-rating combined are other valuations Buffett very a for last more Warren of seen actions markets few as the attractive over the that’s versus

think a I that’s So driver.

the news the the if from. The has where to chess may all we been XX growth I’d board over like to shift going is, It’s XX other that come what geopolitics months know looks add last the thing will, or months. you in

look XX to growth be not the may XX at might are you last years, engine China was say, or who well, the new years hey, the growth it but Some over engines. need

the Southeast where be an East, you Asia, growth Africa in Middle for to time was. standpoint, want on going. to because we’re investment shouldn’t and where it’s India, the places going So eventually growth We from focus is – us, focused like on spend

are avenues those It’s new so And of investment opportunity. inefficient.

You just don’t buy isn’t the an really want index. to There index.

is buy exposures. to both ETF this certainly versus and you for an returns absolute so just get those can’t an And relative avenue

in to like going the currents mean, are cross that? the just are going? are a you in check consultants what stuff on I sounds the channel. about It you’re flavor finals, lot a rates advisory what investors of I’d with when And but have how of like conversations Can like institutional on in asking channel? that

Yes.

not start from outflows years stands not where me be let had And business of we our with, I where So today. we two think we’ve obviously and that’s want think to advisory.

in I cetera. yield the think I those outflows have regime income driven being been change catalyzed fixed macro the markets, asset the the curve, is volatility mean, higher et allocations, in the by change, by

strong we my is gets Real and secular portfolios then think backlog long-term basis, higher. very to that our underrepresented that are However, a listed real they’re comment assets. back investor and in assets on going

positioned think factors well said, focused, Our one I institutional a And important we’ve I team as with very lot And organized, well along see inflows. in that trend a in that’s turn our on. of activity. and is focused got we’re we’re very the performance outflows of that most to toward

to maybe And just Great. last finish. one one

and the geographies each you think, strongest the sense I different of all those on you so get lead kind the the going you stretch? basically products over touched of next us guys in for the what’s geographies to thumbnail a call, geographies throughout of but we could for

it outflows America is our the been market. the North I have – in and biggest as said, Well,

other one the So We’ve pay Pacific. into to EMEA, Asia and that’s to. major attention most geographies, had inflows Japan, the

America biggest. In it’s North of just, so again, terms the is

advisory we And to going time it’s by the be most led turn, flows I So spend there. think when that. the

the that’s – is sophisticated. and more EMEA becoming it where I’d investment pretty process, those is of that we’re And Asia. be resources say EMEA in why and adoption the demand and to well adding the and In needs along also would allocations terms into we’re growing some most, newest Asia. years that three phase, are

more In getting the the a – it’s the – say because Asia, a I’d it’s is it So earlier. just are higher. lot desires – that difficult needs little I’d it’s say

We’re allocations seeing Others from estate first real some for major active. passive are shift to the say, listed who time. plan adopting private have sponsors are

So is region. region, is – but in the America. it earliest than And demand say for it’s North big the Asia assets it’s more disparate real a

much. very Appreciate it. Very helpful. Thanks

Thanks, John.

would We no to to over turn for in Joe call queue. I Harvey the have questions like further closing remarks. back

morning. this to tuning thanks Have forward day. to for Well, everyone a great thank And in look next you, We you operator. talking quarter.

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

may now You disconnect.