The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: John Dunn - Evercore ISI - Analyst
: Hi. It seems like money is flowing into your higher fee areas. Can you maybe talk about how you expect the fee rate and incremental margins to
be for the new business that's coming online?
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OCTOBER 17, 2024 / 2:00PM, CNS.N - Q3 2024 Cohen & Steers Inc Earnings Call
Question: John Dunn - Evercore ISI - Analyst
: Got it. And then you mentioned your two newer focuses over the next couple of years are active ETFs in private real estate. It is likely to be two
competitive spaces. Look, how do you -- or how are you approaching developing them? And what do you think it actually takes to be successful
in those two areas?
Question: Ben Rubin - UBS Securities LLC - Analyst
: Hi, good morning. Thank you for taking my questions. Last quarter, net flows into your US real estate strategies were the strongest in recent years,
as you pointed out. And it sounds like some of those past headwinds are shifting now towards tailwinds. And that said could you just provide any
additional color or drill down on the nature of last quarter's inflows?
You mentioned in your prior remarks, a big win from a large asset allocator. So were the flows last quarter more broad-based? Or are they driven
by just a few lumpier mandates? And then secondly, have you seen that same level of engagement sustain quarter-to-date, either in the form of
client RFPs or flows? Thanks for taking my questions.
Question: Ben Rubin - UBS Securities LLC - Analyst
: Yes, of course. Thanks for answering the first part. Second part was about the level of engagement you're seeing quarter-to-date, are you seeing
a sustained momentum either in the form of RFPs or flows? Or has the pace moderated from September?
Question: Ben Rubin - UBS Securities LLC - Analyst
: Got it. My second one is on margins specifically. So your operating margins last quarter showed some nice improvement. But if I'm looking at 2024
versus the first nine months of last year, your margins are actually lower despite some market tailwinds. So as I'm thinking about the pace of margin
expansion next year, what will be the primary drivers? And additionally, how flexible do you see your expense base today that will allow you to
expand margins off this space? Thank you.
Question: Ben Rubin - UBS Securities LLC - Analyst
: Great. And if I could just squeeze one more in. As you mentioned in your prepared remarks, the balance sheet cash and securities continue to build
last quarter, And now you're holding more liquidity than this time last year. So I know you aren't in the market buying shares. So I'm just curious if
your capital return framework or your priorities will shift as we enter a macro backdrop, which should be more conducive to flows and thus earnings
growth. Thank you.
Question: John Dunn - Evercore ISI - Analyst
: Understood. Thank you for taking my questions.
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