How is client acceptance for active ETFs, is there cannibalization, what is the demand in wealth management, and potential for institutional activity?

Joe Harvey expressed strong bullishness on active ETFs, citing good performance, strong flows, and increasing scale leading to platform placements. He noted RIAs are converting to ETFs and sees some institutional use cases but large institutions prefer separate accounts. “The tone in active ETFs is very good. You can see that as our flows ramp. And most importantly, it starts with delivering strong performance, which we have done. And the design of these ETFs are to present our core strategies.”

Is demand for private real estate rising, and is the firm's entry/ramping up in a good part of the cycle a key pitch point, and where is demand expected to come from?

Joe Harvey noted that real estate has been a laggard in private allocations but believes a rotation into real estate strategies is possible. He emphasized the firm's approach of blending listed and private allocations for wealth clients and highlighted the non-traded REIT's top performance. “But we believe that based on our views and other views on the real estate cycle that you can see a rotation into the real estate strategies. We're seeing a little bit of that, but it's still early.”

Is there increasing interest in diversifying into non-U.S. strategies, specifically global real estate, and could this drive positive flows?

Joe Harvey confirmed an increase in interest and flows into global real estate strategies, noting a shift from prior years where U.S. exceptionalism dominated. He expects this trend to continue, driven by better performance in international markets. “But as the world has turned geopolitics have turned, and we've started to see better performance in international markets broadly. We've seen more interest and flows into our global real estate strategy. So I would expect that to continue.”

CNS

Cohen & Steers (CNS) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Financials· Apr 17, 2026

Source: earnings call transcript

Executive summary

Cohen & Steers Q1 FY26 — Strong Inflows and Real Asset Outperformance Amid Geopolitical Shifts

Cohen & Steers delivered strong Q1 FY26 results, marked by significant net inflows driven by open-end funds and active ETFs, alongside robust investment performance across strategies. The firm's focus on real assets proved beneficial amid geopolitical fracturing and inflation uncertainty, positioning it well for a market regime shift. Management continues to expand its product offerings and distribution channels, while navigating potential headwinds from global conflicts and liquidity concerns in private markets.

Highlights

Net inflows of $497 million, representing positive organic growth for 6 out of the past 7 quarters.
86% of AUM outperformed its benchmark on a 1-year basis, with 3- and 5-year rates both above 97%.
95% of open-end fund AUM rated 4- or 5-star by Morningstar, up from 90% last quarter.
Active ETFs continued momentum with $224 million of third-party net flows and $675 million in total AUM.
Non-traded REIT delivered 10.6% annualized returns since inception, outperforming the peer average of 4.3%.

Concerns

Operating income decreased to $50.7 million from $52.4 million sequentially, with operating margin declining to 35.1% from 36.4%.
Liquidity decreased by $60 million to $343 million due to the annual incentive compensation cycle.
Sub-advisory experienced $269 million of net outflows, including $164 million from Japan.
Geopolitical events (Middle East conflict) slowed business activity and introduced stagflation concerns.
Redemption constraints in private wealth vehicles pose a key question for investor appetite in evergreen vehicles.

Guidance & targets

Category	Target	Timeline	Confidence
Compensation ratio	remain at 40% medium materiality	FY26	High
G&A expense growth	increase in the mid-single digits medium materiality	FY26	Medium
Effective tax rate (as adjusted)	remain consistent at 25.5% medium materiality	FY26	High
Consumer inflation forecast	average 3% annually high materiality	next 10 years	Medium

CNS operating KPIs by quarter

CNS operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Sep 2026 Q3 FY26	Change vs prior quarter
Net new assets	$497M The first quarter's fundamental highlights include net inflows of $497 million a strong one unfunded pipeline of $1.7 billion, characterized by good velocity with continued fundings and new mandates, stable fee rates strong absolute performance and neutral relative performance, while 1-, 3- and 5-year relative performance continues to be excellent. Source: earnings call transcript	$1.3B We generated $1.3 billion of net inflows, one of the strongest flow quarters in our recent history, while our institutional pipeline remained robust at $1.6 billion. Source: earnings call transcript	$1.6B We generated $1.6 billion of net inflows, representing our fifth consecutive quarter of organic growth and our strongest flow period since the fourth quarter of 2021. Source: earnings call transcript	+23.1%
Net new assets Multi-strategy real asset	$142M Flow highlights by investment strategy include: multi-strategy real asset inflows totaled $142 million, the best quarter since third quarter of 2022. Source: earnings call transcript	$380M Our multi-strategy real assets portfolio had $380 million in net inflows bringing strategy wide AUM to $3 billion, a compound annual growth rate of 29% since 2021. Source: earnings call transcript	—	+167.6%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
Future of Energy open-end fund	update	midyear
Multi-strategy real assets portfolio	launch	later this year
ETF as a share class	update	—
Short duration preferred SICAV	launch	over the past year
Short duration preferred active ETF	launch	over the past year

Deals & partnerships

Institutional investors LP vehicle that invests in core private property funds and listed REITs together $250 million

An LP vehicle launched late last year, with $250 million in fundings or commitments, designed to provide a core allocation to institutional investors by blending private property funds and listed REITs.

Risks & headwinds

Geopolitical conflict Q1 FY26

business activity slowed for a period

Mitigation:firm's liquid real asset strategies fit the 'halo trade' well, offering low obsolescence and liquidity

Stagflation beyond Q1 FY26

consensus post war is for stagflation

Mitigation:real estate returns could be tempered, but valuations have reset and fundamental cycle has turned positive; global listed infrastructure is a beneficiary of capital investment cycle

AI existential risk pre-war

investors were very focused on the existential risk of AI on certain industry groups

Mitigation:AI leadership will be about compute capacity, with marginal cost tied to power, benefiting infrastructure and natural resources

Credit and liquidity risk in private credit Q1 FY26

increased redemption activity in private credit and an uptick in sales in real estate and infrastructure in March

Mitigation:firm's short duration preferred strategy offers strong, transparent credits as a substitute, with tax benefits and lower headline yield compared to private credit

Redemption constraints in private wealth vehicles short term

key question for CNS REIT short term is how redemption constraints in private wealth vehicles will affect investor appetite for evergreen vehicles generally

Mitigation:positioning allocations as private strategies with liquidity provisioning, emphasizing importance of liquidity frameworks, and offering compelling solutions across the liquidity spectrum

Inflation uncertainty next 10 years

consumer inflation forecast to average 3% annually in the U.S. over the next 10 years, well above 2% target

Mitigation:multi-strategy real assets portfolio is a great solution; natural resources and infrastructure benefit from profound impact of resource scarcity on pricing

End of low interest rates beyond 2026

market continues to underestimate that we will live in a more capital-intensive world, we took interest rates and credit spreads wider

Mitigation:real assets provide diversification against different economic drivers and inflation regimes

What to watch in Q2 FY26

Compensation ratio

2026

Current 40%

Target Remain at 40%

Why it matters

Indicates cost management and profitability.

With respect to compensation and benefits, we would expect our compensation ratio to remain at 40% as we experienced in Q1.

Find out whether CNS delivers this. Inve re-checks your case every morning.

Q&A highlights

Is the recent inflow trend in the advisory channel sustainable, and are inflows from existing or new clients, and are they looking at multiple strategies?

Joe Harvey confirmed optimism for continued improvement in the institutional advisory channel, citing broad favorable conditions, a strong $1.7 billion pipeline with good velocity, and increased client activity beyond RFPs.

“But we now have a very strong pipeline, I think, for the third straight quarter at $1.7 billion. I talk about the velocity, meaning in the quarter, we were awarded $74 million of new mandates. There was another $45 million that was won and funded in the quarter. And then we also had another $490 million fund in the quarter.”

asked by John Dunn · answered by Joseph Harvey

2 min read 6 chapters

Detailed narrative

Market Outlook and Geopolitical Shifts

Management emphasized a structural transition in the global economy driven by deglobalization, AI, inflation uncertainty, and the end of low interest rates. The Middle East conflict, while causing short-term slowdowns, reinforces the long-term thesis for real assets as a diversifier against geopolitical fracturing and persistent inflation.

The firm forecasts consumer inflation to average 3% annually in the U.S. over the next 10 years, well above the Fed's 2% target.

Real Assets as a Core Allocation

The call highlighted the continued strength and relevance of real assets, with listed infrastructure up 8% and diversified real assets up 12% for the quarter. Management advises clients to include hard assets as a meaningful allocation, sourced from equity and fixed income, to diversify against different economic drivers and inflation regimes.

The fundamental inflection for REITs is expected to drive earnings growth of 5-6% this year and 7-8% next year.

Strong Investment Performance

Cohen & Steers maintained a strong performance scorecard, with 86% of AUM outperforming its benchmark over one year, and over 97% outperforming over three and five years. 95% of open-end fund AUM received 4- or 5-star Morningstar ratings, demonstrating consistent long-term outperformance and meeting the primary objective of providing outstanding returns for investors.

Growth Initiatives and Product Expansion

The firm is actively expanding its product offerings, with active ETFs showing strong momentum, contributing $224 million in third-party net flows and reaching $675 million in total AUM. Plans include converting the Future of Energy fund to an ETF midyear and launching a multi-strategy real assets ETF later this year.

The non-traded REIT continues to perform strongly, with 10.6% annualized returns since inception against a 4.3% peer average, driven by a focus on open-air shopping centers with 97% occupancy.

Institutional and Wealth Channel Dynamics

The institutional advisory channel saw its second consecutive quarter of net inflows, with a strong unfunded pipeline of $1.7 billion, including $74 million in new mandates awarded and $490 million funded in the quarter. While sub-advisory experienced $269 million in outflows, particularly $164 million from Japan, the firm noted improved market share in that region.

Management is coaching clients on optimizing portfolios with both listed and private real estate, acknowledging current challenges with liquidity in private vehicles.

Distribution Enhancement

Cohen & Steers has made significant investments in its distribution capabilities for 2026 and 2027, including key hires for a new Head of Japan, a newly created Chief Operating Officer for distribution, and additional RIA sales roles. The firm also promoted a leader for wealth and brought in a wealth sales leader. The strategy is to tie future sales team additions to organic growth success.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.