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
: All right, thank you. Maybe could you just give a little more color on the kind of the temperature of the sales conversation you guys are having in
the wealth management channel for REITs and preferreds, just given the cross current rate, cross currents we could see in '25 and then also like
your expectations for like the appetite for redemptions?
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JANUARY 23, 2025 / 3:00PM, CNS.N - Q4 2024 Cohen & Steers Inc Earnings Call
Question: John Dunn - Evercore ISI - Analyst
: Got it. And then we've seen that active ETFs can really take off. So it's great you guys are getting into that. But it is new to you guys. So maybe could
you just talk a little bit more about the plan for rolling it out? You mentioned to RIAs, but how -- is it different from selling or marketing than what
the vehicles you have now? Any early indicators on interest? And any concern on the potential cannibalization?
Question: Benjamin Rubin - UBS Securities LLC - Analyst
: Hi, thanks for taking my questions. My first question is for Raja. Last year, you guys saw some solid growth in your open-end vehicles and also
firm-wide flows inflected positively later into the year as you touched on in your prepared remarks.
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JANUARY 23, 2025 / 3:00PM, CNS.N - Q4 2024 Cohen & Steers Inc Earnings Call
Despite that, we still saw operating expenses outpaced management fee growth. So obviously, appreciating that operating leverage tends to lag
inflows and general AUM build, do you think you can grow operating margins off the 35% clip in 2025? And if so, do you require another year of
positive market beta or appreciation to unlock that? Thank you.
Question: Benjamin Rubin - UBS Securities LLC - Analyst
: Thank you. Just appreciate that, Raja, and that color. I believe in the last call you guys guided to $1 billion of known redemptions from a combination
of both advisory and sub-advisory clients. That would be split or is expected to be split evenly between the fourth quarter and in this quarter.
So I just want to clarify, did the $500 million that you expected to come out did come out of the last quarter's numbers? And does your updated
guidance of the $800 million of expected redemptions in the first half of this year reflects some portion of that previous amount? I just want to
clarify the updated redemption guidance. Thank you.
Question: Benjamin Rubin - UBS Securities LLC - Analyst
: Got it. So it sounds like more like a longer-term theme as opposed to a near-term phenomenon. So I believe in the last call, you guys guided to $1
billion of known redemptions from a combination of both advisory and subadvisory clients, and it was expected that, that $1 billion would be split
evenly between the fourth quarter and this quarter.
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JANUARY 23, 2025 / 3:00PM, CNS.N - Q4 2024 Cohen & Steers Inc Earnings Call
So I just wanted to confirm, did the $500 million come out in the fourth quarter? And does your updated guidance for $800 million of redemptions
in the first half of this year include some portion of that previous amount? I just want to clarify the updated guidance. Thanks.
Question: Benjamin Rubin - UBS Securities LLC - Analyst
: $200 million came, sorry, $200 million came out in the fourth quarter?
Question: Benjamin Rubin - UBS Securities LLC - Analyst
: Got it. And then just squeeze the last one in. We see a number of deals announced in the space in terms of active managers acquiring private
managers or buying differentiated capabilities. Is that something you too, would be open to pursuing? And if so, which asset classes would be
most appealing? And would you be open to putting debt on the balance sheet to finance such a transaction? Thank you.
Question: Benjamin Rubin - UBS Securities LLC - Analyst
: Oh great. Thank you for taking my questions.
Question: John Dunn - Evercore ISI - Analyst
: Thanks. So you mentioned that you're investing in your international offices. So maybe could you just talk about like what are the best and most
important markets outside the US for flow demand? And are there any different like preferences or behavioral differences to point to for those
markets?
Question: John Dunn - Evercore ISI - Analyst
: Thanks again.
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