Cohen & Steers Achieves Strong First Quarter, Driven by Global Listed Infrastructure and Open-End Fund Flows
The investment management firm Cohen & Steers has reported a solid first quarter of 2025, driven primarily by strong flows into its global listed infrastructure strategy and open-end funds. According to the company's Q1 2025 earnings conference call transcript, revenue for the quarter decreased from $144.2 million in Q4 2024 to $133.8 million in Q1 2025 due to lower average Assets Under Management (AUM) during the quarter.
However, despite this decline in revenue, the company's operating margin remained robust at 34.7%, with the primary driver being a mix change in its average AUM. The effective fee rate also improved slightly to 59 basis points from 57 basis points in Q4 2024, driven by changes in asset composition.
Notably, Cohen & Steers experienced net inflows during Q1 2025 for the third consecutive quarter, primarily due to open-end fund flows. These flows were partially offset by institutional outflows that were anticipated. Global listed infrastructure was a standout performer during the quarter, with strong flows into this strategy.
The company's AUM stood at $87.6 billion as of Q1 2025, up from $85.8 billion in the prior quarter, driven by both net inflows and market appreciation during the period. Total expenses were lower than the prior quarter, primarily due to a decrease in compensation and benefits.
In terms of guidance for the rest of the year, Cohen & Steers expects its compensation ratio to remain at 40.5%, while G&A is expected to increase by 6-7% compared to the prior year, driven by infrastructure investments and expenses related to its recent ETF rollout.
"We're pleased with our Q1 results, which demonstrate the resilience of our business model," said Joe Harvey, Chief Executive Officer of Cohen & Steers. "Our global listed infrastructure strategy continues to attract strong flows, while open-end fund inflows have also been a positive driver for us."
