Cohen & Steers (CNS) 19 Oct 232023 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Cohen & Steers Third Quarter 2023 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded, Thursday, October 19, 2023.I would now like to turn the conference over to Brian Heller, Senior Vice President and Corporate Counsel of Cohen & Steers.

Thank you, and welcome to the Cohen & Steers Third Quarter 2023 Earnings Conference Call.

Chief Stadler; Joe Officer, and our Financial our John are Matt Officer, our me Executive Harvey, Officer, Chief Cheigh. Joining Chief Investment comments questions to answers want remind that of I you to include may our your forward-looking statements. some and annual based including are us, outcomes our on earnings SEC third those report materially described these differ currently a to release actual information our quarter reasonable in believe and available on and most XX-K We number our could due filings. statements to but of recent presentation, Form factors, accompanying other forward-looking We offer assume no statement.Further, solicitation buy duty none or fund sell of our to of an vehicle. update or constitute securities offer investment to any the statements the an of to any other

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

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

$X.XX reconciliation compared results. XX $X.XX XX presentations. and in on calls, prior share releases previous GAAP found the of XX A as-adjusted on my as earnings As we of Slides year's reported through earnings our $X.XX adjusted will remarks on the morning and and of sequentially. Yesterday, can earnings on per to this XX the with Pages quarter be of results focus

was for benefits year's in The compensation increased in additional quarter with accounts quarter the the revenue of was included of the million and compensation X increase that recognition certain XXXX million the $XXX.X quarter. The an sequentially. primarily quarter to performance day due fees third prior ratio. the $XXX.X the from to Revenue compared second as and institutional well from million adjustment quarter to $XXX.X as

is million fee the basis The basis performance primarily G&A. XXX points third XX.X quarter. the recognition decreased effective X% classes and under with XX.X% $XX.X quarter, in margin in previous ended, with quarter in from X.X% The partially higher months fees and third in XX.X% quarter, was from quarter the increased the sequentially, XX.X% prior Expenses compared operating approximately million quarter our than the points effective increase second points quarter fee revenue in $XX.X rate. to assets which third income in being quarter and ratio basis included to second end XX higher earlier, benefits, in the referred $XX.X than late management. XX.X% majority increased quarter. of in under X management guidance.Market depreciation Operating assets quarter compared for year's Our average the the our our rate our of the lower accounted lower million compensation the asset by in was resulted to the offset for our last and third adjustment to compensation to the for due now

shareholders. costs, well order entertainment travel by lower conferences. hosted and quarter, management was system We revenue as primarily providing lower The business-related which than compensation trading when recruitment year balance in in order partially the with associated expect compensation us employee retention the to result in quarter had this our to the forecasted results increase projected full G&A of we lower to due our new to to costs now increases implementation and as offset decrease with than ratio to revenue in third led last completed guidance in and

Our earnings securities quarters. on provided U.S. our of current and sets our tax trailing call. last investments seed cash at forth XX.XX% X Page and the rate liquid the XX in guidance corporate effective presentation treasury investments for the with and consistent remained cash equivalents,

end liquidity million $XXX.X firm totaled revolving Our million on drawn have facility. and credit million $XXX.X we at quarter, our compared quarter with not $XXX last X-year

$XX under depreciation of The distributions $XXX to of September million or provide at million.Joe Harvey of management outflows June Assets will decrease $X.X due pipeline an mandates. unfunded billion from update XX. of awarded were billion, a market institutional and our was $XX.X XX, billion decrease $X.X net X.X% of on flows and

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

We increase expect lower last X% is increase XXXX, which X% from than XX% the recorded G&A in million call. to noted on X% to $XX.X we to quarter's the

corporate new our tax center, the establishment data to last expect our with of would effective G&A a new associated compared expect flat we will XX.XX%. when remain at And be projections and we cost finally, headquarters rate with Excluding year.

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

strong environment Energy on opposed Thank this you, then of Global I'd our the call and new provide investor what our to the to morning. to addition viewpoint good believe we is for during investment the like this assets, real generate consensus natural help our this cover quarter. early performance allocations and energy-oriented on shifting, topic in I'd scorecard the like Matt, returns Today, and transition. strategies. We and market and will resources stages as And

to Turning performance our scorecard.

of AUM last outperformed quarter, XX%. the drop a quarter's our from For XX%

term. caution would much reading we disappointment, slight into a the too While short

order prospective most we X- X-year in to clients are and believe our philosophically, performances that First, and important our investors.

we experienced by by year. alpha points points XXX performance over Second, quarter are pullbacks notably this in where and for most X low-duration still is which XX the outperformed preferred, Positively, preferred up the quarterly years. X basis was basis outperforming the strategies we and occurred our led securities, now

a recovery crisis banking challenging a XX% we outperformed, QX. QX and earlier our the our preferred for same this of is strategies, year.For seen the months, row relative absolute X as after of have both last quarters which AUM XX now Following in the performance

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

Turning equities most to and market declining global classes environment, with global quarter for X.X%. down was the challenging asset X.X% bonds the

for and this concerns the and about For sustainability. first months attention back deficits prospects rising soft drove positive listed to concerns inflation market X rates, year, over fiscal along cooling shifted returns. with inflation But higher stubborn landing the debt quarter, of market and new

by had the environment, to the XX-year in pushing yield quarter, a X% declined listed measured estate underperformance private our already struggled and but quarter. X.X% of by end matter We Our to a clearly of with fundamental versus largest class, asset the X% in as timing be view the by underperforming Natref, private treasury which not declined priced closer trend. new of the real estate, U.S. view, for U.S. X.X%. REITs Real a

surged that a power Amidst the investors we but This horizon. modestly energy strong outperformed this multiyear during quarterly Real believe point XX-month in Russian we low continued markets convection mid-XXs. plus markets. for XX-XX oil highs should demand, expect comparative petroleum markets. portfolio. entry strong in markets have the over story, listed Indeed, particularly global big on crude space, decline an exports fundamental as production cuts private a still complex assets REITs, so within a to that maintain listed deeper which attractive and sheets.Considering today and the implies pullback as see supplier declined up latest pricing returns balance in well forward we in rate quarter our and induced are valuations as we the OPEC oil listed prices versus picture, in priced stronger Commodities Brent were private X.X% crude pushed falling write-downs

surpluses, OECD barrels largest further supply X-year was X deficit quarter million expected per their inventories fourth of X.X the addition, below XXXX the of In quarters after of drove and day quarter's the since average. straight

expected, the X.X% drove same equities. for quarterly developments natural resource As a return

attacks Middle which the war, developments monitoring We terrorist the and are Israel in ensued. closely the in has East following

have least global at increased. the economy for certainly all tail moment, for prices While the commodity risk oil unaffected, have and remained fundamentals

by impacted the Also issues cost have of energy has Utilities, quarter. on and Moving led and and to dynamics, attractive listed now continues in infrastructure. and projects. well activity. with North energy XX% up capital investors impacting value as most free between X.X% both of the X% quarters. electric rates infrastructure tend likely the nearly All midstream particularly universe customer space America in lower chain industry negative higher rate-sensitive and been were to quarter returns flow X% impacting X% impact major lingering U.S. both The during well interest these be companies the the gas the been asset during cash class renewable the the as as Cell leasing our perform appreciate of scarcity electric, fell supply the generation. year subsectors, of to the part water also up higher tower Offsetting energy utility decline. new down and for the

our institutional discussing infrastructure on XX quarter. strategic an in and entitled, on We higher transition to volatility. Factors global term, focus of preferreds our highlighting quarter, down by up basis perform over for tightening the want growth energy energy will for inflation, I macroeconomic sector the Last aggregate, published and energy our from and that insurance both XX to our stages attractive Lastly, earnings important durations, are features peak how edition. banking, energy we time manager, view shift yield by coupons Bloomberg for time resources Alpha, contributed imperative due this natural points higher a Tyler highlighted core such the speak as and monetary standpoint, in the strategy returns earnings to and on the continue and security total lower of defined the bank to change, transition. Roselli the more and early assets our benchmark potential I was believe near defensive the Changing and our yields, from call, In From was outperformance with real of as reset to so-called by policy we case will to its aided regime believe solid to transition beating research spent fixed consensus Today, sector as greater security and X.X%. piece individual and last approach the market energy gears, we far-reaching included significant strong diversification. portfolios shorter selection month, preferred portfolio fundamentals addition. X% outperforming well cushions. securities that a the utilities healthy which

economy You analysts natural and energy. as global more and In us the into the will energy are we short, and most and a will still increase while in consumption importantly, population, believe growing be certainly more world. that pieces standards living resources to see become over to should from real that growth delved global it investors energy much scheme the support rising tailwind a expect of developing will in economic time thought the assets, aggregate efficient, how for

and In energy in forecast will future to increase both energy sides aggregate will significant believe alternative obsolescence traditional meet XX% and with companies this efficiencies by new we fact, the industry increased changing coming this The The need both opportunities equation. demand, to dramatically investment demand and XXXX. the we is a on world disruption. energy to reacting market, technologies attractive all create facing of

such of grow next energies will is as will alternative the obsolete. decades, Some demise solar its now is not. future, exaggerated. by satisfy optimistic. and gas energy rising are and will others the the natural energy demands their ready growing crude on wind which over The production fully oil To as the old been expectation the time, be case, and to XXX% In clear, the has at incumbent while of definition help demand. least At same navigate if meet greatly not that traditional well, the own several such is change renewables, energy expect carbon-intensive we premature, world's energy companies to either

and showcases However, not on energy why estimate which still source The marketplace will needs, cannot only world cover to dependent rely this will roughly the traditional one continue exclusion to energy. of of on we XX% invest others. the in and will be future energy

"more alternative With of we the the exception coal, a believe of Indeed, next decades.†in for we likely way are investing energy both the forward. in world traditional everything is few and

investments economic to into energy population will picture, for alternative natural be This over will asset energy, of energy that, blending an return traditional living ever-grown As When strategies.With also it equality. standard and create call risk driver need resource returns turn and and replicates of believe a transition what to the the edition with emerging prolonged energy me profile a looking lift key higher real can compelling the broader world that we let investors. a to our allocations increased consensus Joe. equities at

Thank first outlook. touch discuss on environment, third morning, briefly you, macro fundamentals I'd quarter Good then like and John. our to everyone. business the

the During bond the on risk assets. higher rise, for caused potential the federal the third on quarter, inflation pressuring of for U.S. and furthering view and focusing longer emergence valuations to vigilantes bond sticky yields deficit

at for AUM billion. While the our $XX ended quarter we $XX was average the quarter billion,

X.X%. asset Our S&P depreciation had decline of the largest greater classes than XXX

oil up the in Energy and X.X%. declined XX% the with prices XX%. up quarter REITs U.S. example, was For equities energy winner

interest the components. much our represent a larger assets AUM energy-sensitive Our percentage of rate-sensitive bands total

open-end of totaling stock $XX X.X% XX vehicle into million, as regional funds U.S. treasury reflects X.X% sub-advisory. in funds short-term outflows results quarter, market X outflows greatest and out outflows Symbol In the funds, The came net SMA, net billion, $XXX across outflows, may were low-duration the million turmoil what yield banking for preferred had The core U.S. outflows quarter the open-end U.S. $X.XX $XX REIT channel $XXX UMA current improvement have our the of led funds, of open-end the and fund, accounted $XXX funds, of quarter, and million of been million institutional outflows inflows the $XXX net $XXX annualized of $XX we $XXX outflows had in outflows. improvement Year-to-date, with of million, outflows. advisory channel an sentiment. inflows offshore fund, million had see X market funds, quarter have rate Net environment. in considering wealth totaled all had year. LPX. types, LPX, decay stock million net did open-end following our an including preferred We of X funds vehicles. preferred the accounts by third the inflows were positive X%. reflecting of sector from was on million risk-off flow the second when which which exceed The in net better Firm-wide through including our UCITS million. yields were expected than our Our had from CPX, which the earlier now steady from In

assets million. been U.S. saw XXXX. dollar been in another by since at partnership has interest Japan a with million net also multi-strategy by rates outflows partially sub outflows advisory Japan. mutual $XXX million with the $XXX We inflows Japan of limited This helping $XXX by increases outflows vehicle. We the million from X Japan ex with CSU completed X our real flows both been. accounts REIT strength not in U.S. inflows our were of a relative should was into REIT $XX and million. included and million, The quarter the $XX infrastructure strong the with quarter new strategies versus Japanese rate has associated fund, terminations, the rise inflows Asset net million share source redemption the portfolios. of kept one $XXX positive in our had $XXX X end, the and advisory lion's global being REIT Daiwa existing is $X fourth equal allocation led completion virtually million, of account wrap in they've Management's X Institutional be in quarter preferred totaling of out. of assets had the first at fund which driven from highest X pace have dynamics X funds. million, to strategy real TRIMs totaling and flat mandates multi-strategy new sub-advisory $XXX mandates existing The offset second a

funds. those marketing up has addition, partner, efforts Daiwa In stepped our for

Our including with the the from was strategic was last pipeline underlying one million million de-risked. was change allocation the and quarter, one X a new OCIO private average X-year of $X.X accounts, mostly terminated from and unfunded million vehicles client’s to billion. $XXX $X.X million for pipeline million was X compared into $XXX where real estate billion funded our Tracking added from mandates, last $XXX quarter $XXX $XXX client

has slow, decision-making client quarter in activity been While picked the up third and continues.

Turning we of clarity to are corporate priorities. way our we're and organized strategy, We believe well by how the outlook. positioned of our our

our strategies control, within private performance strategies infrastructure real of the as new seeded the things and energy. new estate have continues in In to terms as such prudently opportunities we and be invested of and such our relative have future strong,

expanded and more and resources in capabilities to and also have distribution to sophisticated infrastructure increasingly accommodate invested Asia allocated have in estate have our corporate real include We clients. private our more

will capital and cumulative better businesses effects To organized at partner interest or entirety portfolios. catalysts and wars added tensions long higher the for for multiple stimulus the less some for but rates What's of rates central in to the diversified geopolitical now the good the that more reactive. the cannot well. to our order in a and be and unwound fragile.Normalization in capital investors which conflict, of change is build as with predictable and view macro owners. asset with Factor Deglobalization a private of market, is continue quarter will very considering economy. is them are of presents and We challenging time, macro listed longer in in but potentially of markets cost compression geopolitical landscape process XX taking be X interest be strategically years the and inflation This help banks allocation, manifested regime that is increase prevalent, X. and provide challenges end the shift the reflection, and is in the is world cases, for better understandable has mostly economy be monetary the that including the and developing will outright of in day date, shifting the performing

capital a bill for affect economy makes side-line change wait As to fact investors sense see over to economy should and X% riskless result, the continues regime more a that earn the decision-making, treasury experience their they now. asset can allocators global while the volatility. in The valuations how evolve and

where question is private The is across out, other marks decisions board. the portfolio which allocation settle slowing valuation will

become assets and well our private is shifts to based pace seeing opportunities grounded. for its and a now assets underperforming real in in allocation with correction, estate, listed the Fed with We believe return, short in We're and passive opportunities up that is underrepresented further fundamentals is cyclical and risk real strategies nearly cycle their are begin their in that expect advising continue for That on price opportunity recession for with to takeaway the as open the estate to believe visible impact real more investor concerns XXXX. end tightening portfolios points. the strategic of for managers We for optimization treasuries to the from that down real foot. the its waiting and term, and active considering asset on investors regime opportunities from completion said, sitting we of dynamics strategies to continues of Demand decision-making. XX%, buying of We're listed customized Then desire diversification. listed change prices nearing Asia. emerging clients averaging into in attractive entry creating real private the estate demand REITs time to

participate in X% mirror preferreds to in with fixed preferreds in banking rear-view income expect the cycle. crisis For range, yields return we the next X% the and the with to many

investors inflation generally and natural be that we including macroeconomic short will mentioned, strategies likely that are with constitute allocations assets real greater resource a the As factor inflation to beta, want equities the multi-strategy portfolio, investors our and expect to commodities. fact increasingly

well particularly we for the suited is environment envision. strategy equity macroeconomic resource Our

private with real allocations in as will just allocations. infrastructure to Finally, investors complement estate, listed in look

We with private make progress our estate new continue to real vehicles.

the REIT commitments ready commencing our has and office The SEC of increase the Cohen but become REIT, strategy. seed We're further Income next review patiently and to operational go, XX registration been growth. light our rates from to a from Steer's include corporate we've in decline steps interest waiting completed & and prices investment and nontraded in all for Opportunities its process Our and capital slowing states. multifamily drawing with to

been has halfway that prices the say, to expectation to to Our generalize, of an record to advantage there. start is nontraded a XX% about period. good while and taking we with Needless REIT to our track objective XX% need investment we're attractive decline believe

the In private Due regime to terms these we has fund, of our while of longer market real correct. closed-end to capital of raise equity for prices to waiting complexity with to the get private taken the opportunity duration estate vehicles, change it continue them. to and

side. Singapore the of our identified and allocations place, capabilities is investment an hired in from in a initiative meaningful in the office complement office perspective. strategic We've both the our both this seeing $X.X is private institutional having supporting we're for strategic, [indiscernible] Hong The However, classes We've of Kong institutional asset the initiative heads power potential leverage. provide is real operating billion that and Asia. the and structure and on cost Singapore we to in estate markets. initially will wholesale sales client believe investing to

this channel, the are complement account, opportunities Singapore of wholesale a and the managers regime destination for wealth focused Taking private has we distribution in the into for open-end very excited our for all amidst For about busy, active Europe. become and will change. CCAPs offshore investment

our to We and be Stadler about a helping add passionate retiring to next are business, the centered close performance professional like is year. great firm to Executive about around for that lead and an announcing to our working attention Matt yesterday, consummate filed your asset we to Committee. investment He as our department CFO we Cohen Steers take on will allocations advantage leading is come. will thank many you XX for years to of what calls, to of his philosophies that timing call. his executing for will you talked the felt will lines or X contributions Matt these Congratulations, a for for note another transition. successor to of has listening and could look forward earnings on service earnings Julian, you XX priorities please finance and X Thank pointing by clients be and He classes.I'd our be to and open with to initiate delivering entry Our and finding on to & smooth of based Matt. points our XXXX years the to or X-K questions.

first Instructions]. And ISI. [Operator John Dunn our question Evercore comes from from

you talk And story how to before? out need real estate just more maybe afterwards, we see how do peak it peak play potentially flow and little get you could at Maybe preferreds. you're plays rates out. about that the start a get Do for people how people demand or about thinking looking to as to

and we John about extent I'll preferreds. Let the the real bit see some me is estate Cheigh return ask with to predict is up to evolving thoughts talk more Then maybe but can cycle things -- impossible, in the which past. talk almost not that we've can little follow how a how for you seen on those, we about

rates, of course, of rates, there's there's and in end. then long "peak" Look, short terms

REITs, end. what I I so-called and our we're on historically course, by and when their impacted happened hiking them to the investors REIT preferreds current attractiveness and we on gotten have long to both has are the cycle. would talking think returns and and we've educating prospective investors say rate when more preferred the of end been about And of

preferreds. that more like see hike to some next example, Fed XX for preferreds, for X% once had So the for research tend over we XX% the months, the share last you has of compares rate to is returns This treasury. its

So kinds similar REIT. I there's research of and educated our think investors -- that on we've

that, peak, counsel most fully we REITs or when we course, the and the best that with amongst understand preferreds. long fact. So, historically, that's until opportunities really people within tended get short I of to that know and never when rates, talk be you're to to them We whether there it's after you think people

and some "dollar the cost has so, average certainly happened. amount that side, side seen of that as we it fund know. not And advisory so on to both investor but see to happen And behavior, we've want They in, I think you the need in.†on and rebalancing now

far. Joe we've in. net some come to it's But I'll to turn so more certainly, of Maybe seen talk back about… So, that muted it been demand flow

just it down terms versus Sure. institutional in of Maybe maybe break advisory. wealth

on advisers’ been can So, the have with coincident -- for whom are using allocators investors markets wealth too, understand, professional historically, the are and more we typically how that these But should who platforms side, vehicles, you Qs money. move. of several for looking on that REIT very some the that large mentioned the side, be a move amount of example. And indicators are there and John have

you remember the couple of evidenced that in and would we kind calls, be our we've had anticipatory just a some good. more third the just past of where sitting stock taking waiting. their significantly that our seen up accounts of you'll new the some of portfolios. activity just lot was levels we those the change regime quarter, due second numbers pipeline quarter to around we expect fundings, the were to in fundings pick of being the are We've activity follow side, seen investors like activity institutional and very investors if slowed On won But and those felt earnings significance of

investors wealth getting but And particular, fact to normal. watch a is the return Overlying being wait and -- say So, not presents see real getting treasury the change normal, that income channel, the process. out. all market over X% opportunity. in bills in regime with things play sit fixed activity comments that how to now the and it's about I'd And through that's to institutional this of enabling maybe closer the of is I made

of process. been are motivated that excited going alpha are And it. capitalize I on these the change, what seen. is This about, teams regime out about, and focused we've one to as longest I'm has a said, So, that as opportunities. highly are But these investment dramatic come we've our why to talked the changes opportunities that's of and

sounds you to the eventually, And us on the envision AUM on it's like block. where you being base? the it it give conversations but markets, going of much going, then private demand a Can are the maybe Like be getting contribution. newer of closer, flavor part and might of how like as how products we're a

that Well, time. is it where can the spend don't are make in we on how the sector try We providing asset projections real and That's estate Clearly, our classes performance investment one the much on world. really and we to represent. strategies AUM focus of biggest compelling unique.

if we meaningful could the deliver it company. and performance be potential the deliver to on on So, distribution,

is point And executed notwithstanding these for to through be two the the years. as look, the we are prices REIT And in XX going X can I we different have uncertainty strategy ready we’re we're next that the One a world to waiting would say, that all the are We mentioned, mobilized, that vehicle. we're to decline investments to over nontraded great go. investment to strategies. core be just

money year, would it's we So, to to into expect as we're next get that. time going that closer early be to much to I put think And I work.

debt and an opportunities. And waiting opportunistic higher and present properties to strategy have for that situation. dynamics that an too, of on the a The of strategy might situation cost maturities the changing or we're return focused is vacancy capital is other overleveraged there,

ultimately so, but dynamics need opportunities due process I raise financed to a mentioned, are that to to capital, we go and of to some emerge lenders through for properties just going make longer take bit to decisions. the little of there the as the sale nature And how owners probably it's to and continue

And the channels? like maybe kind on of you're how the commentary into since you're breaking reception just finding

types information of and bringing and teams to very investments a some well. putting advantage vehicle together an both compelling. unique in our It's an by just has is The that environment alongside fundraising-wise the factors is in and received reception approach more The difficult to we also of all including been for very approach mentioned. both cases, advantage in our real it estate investing a investing and private some of idea have listed of

So, that to is past REIT, strategy we've relates nontraded on talking over that that see as years, we've that as the to out going different is strategy. right they're our gatekeepers X.X are ones there.And what been been the it to than

investment so, very they'll we I us as side, well. do what on And think receive can we demonstrate the

opportunistic wasn't the vehicle. which side, X now it's But up approach including that opportunities maybe emerging, the that the breadth are some private ago strategy, market opportunities that a On years of to sector listed multi-property vehicle in are to in that warming investors popular. as with

And maybe expenses. a couple on

thoughts the on You year, fourth versus guys check. in comp philosophy for early ratio. the retention Any next keeping gave quarter

in John, the give fourth quarter. the we typically guidance XXXX

shareholder market full prepared keeping not So we in value. we we revenue had decline did do, our like that mind an employees what year larger in is. third than of make up as I -- forecasted, we when needed end returning adjustment. in and to to so And in that retaining But the signal always sets us the where my for a declines remarks, said I think quarter the

we being are not all always So, think but to things equal, it is where needs it set we to things equal. be now be, going where all have

So on -- you we'll that give guidance but next for call. XXXX, the

of And already? many looking the investing or you've pull now. kind G&A can of do things you up are to dialed given core your forward, place to years What dial the -- for lot are that done of have what ton flat and just back also you put it levers over the that, willingness in a of the some a year-over-year,

I or total always that and the in But say that increase. other a capital I that we're We might things John pointed might really items were only would be, G&A the entertainment important to things and about there attention business-related to that under the client-facing those do. have conferences, We've about mean, G&A. to paying and thoughtful client lot our of deploying and are things, the that look, keep we Joe activity have little to. incur control. more variable expenses travel been which travel towards be would not XX% a will trying and to of out, is controllable start -- all as inter-office very XX% higher

that next But out, tight the be. things we to will be again, you flat that. that say the numbers build-out, achieving can point be on are pretty think control some we'll which would XX. baked think year-over-year, where I call, as going I versus guidance So, we you the G&A in provide XX% on will excluding

add corporate I'll that the to years many going we've with just of made are infrastructure up investments that set us growth. for

turn, behind rounded going going hit while the those And forward. to bit quite be so those are and us they year, a this we’ve --

mindful people the headcount people this a where we're of but get process, new the AUM opportunities, we we've got is, our personnel adding on until going about to through very regime our replacing markets or and On lot whether of change. we're disciplined where very are, and be hiring it's front,

So, conscious of all this fronts. we're very on

However, are our for where on based the on capitalize view our going to are, markets we position ourselves on clients. to opportunities

what advisory. on I time want U.S. first advisory quarters, of think, And in did X type did It's regions like I to touch clients, what positive drove that? participate?

involved U.S. advisory, we in who regions are the what people do the And side, absolutely. other well. with Well, on on touch as sales

regions. also a it's from client had estate, fundings includes biggest also real might was quarter, in which but But one but It primarily OCIO the we sub-advisory, team. here fundings. unified the U.S. providers the in clients estate. real real from some global existing So, The include in U.S., smaller estate other an came in

real and our of John So interestingly, strategy. multi-strategy made assets consistent couple about comments which fundings from the with I that had we portfolios, is a

has the and from of parts it it's activity different it's global world. and U.S. a many again, contributions But requires up, picked team the advisory. So in cases,

you you're advisory frame should And there did the then inflows Can that that be in doesn't your non-Japan clients quarter. and to regions remind What looking what us, sometimes you And this in attention. it. as drive after sub we reframed then couple much business who there? that years channel? get better like are of It a

it's real managing money I in other been in But X challenging more mandates a different business. from flow Taiwan. fundings hasn't the assets for that mandates. situations an a one And one entity. sub-advisory new from and multi-strategy our of a been couple financial firms, was results provider were And is portfolio great. Korean Canada sub-advisory referenced, just existing from and Historically, Yes. The in as the OCIO quarter, had we services

a I say it that improve that see So, certainly front, recently. necessarily positive wouldn't now on to trend right there's but it was

only one would I thing. just add

dead in an see XX-XX on Wall the the Street that. today, Journal is article You on concerns there's

half get I the thought, of that then together years, people And there's what's about inflation. to next X think years, XXXX, was greater the with X of just a XXXX, happening got in worried act years. a in their I "Oh, appreciation first investors year.†people X need bad think for maybe now,

bad different for and clients is we're not of a there's But in that the in see able going to slightly cases think be need to I I regime inflation or a different is year solutions strategies was to to amount for more so, appreciation were customized going different only a -- XX-XX these real And going provide in change, think a that sensitivity. asset we're because jurisdictions of this the increase protection these to greater markets. XXXX X

potentially talked moving And infrastructure, into people you the allocations on of public. private some then about

factors to one. to the move and consistently But you maybe to going do think being are bigger can more So where -- that's flows? contributor infrastructure what a that be for

being underinvested is then John And you me evolution things area energy. on. like the of have well an add globally. can then let start, in as Infrastructure Well, other that's and been understood

estate And infrastructure be have us asset listed if an that enhanced But so, Investors or in private on can investing and this view, and both and investment markets. capital infrastructure, of lot there's there in have we the you've use mostly been the it heard huge recognized investment side. the private needs. a you are that from like real

So, listed already estate in happening is we real what's have prices market. market the the The earlier private down. foreshadowing talked about in gone

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opportunity money being listed to are to allocate so infrastructure -- investors allocations has to the an put in so, slowed, creates for work And private that markets. the

using evolve best asset way and will both the the infrastructure make real class portfolios. in just private terms estate investors think has of the we listed So, same to

and phone. And to the congratulations big you last said everybody saw perked you on from I you me. do could passive But that? on us Joe, the when up for Matt you But some in one a opportunities with say my side give to want share thank ears from your to Anything of remarks, active.

think of we've generate can returns you over And points have had very changed a to and situations over simple, of excess X the and where When compound XXX active institutions passive maybe substantial. it's mandate hired that period XXX us. to past say the right? I I'd basis a long mandate an rationale year, is pretty time,

which to where the should in you behavior way, So, like investor at a fees. -- net returns And consistently is it's don't a can act we've excess outperform bit in see just asset where we of It that. that if very classes rational interesting average our look there's and outperforming. reason little core for a box great be than managers have different a proven of active classes batting style may asset

structure. to the total in advisory wealth, than a by us. say So prevalent the institutional it's overall unique little channel I'd more fee which is more maybe dominated

it happen but happy -- institutional. see So in we're to

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

results January. we us in forward to today, Thanks our for time look with and spending quarter great. Well, fourth reporting

and have day, great So, for Julian, moderating. thanks a Thanks.

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

disconnect. now may You