BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
Investing.com - Evercore ISI has reiterated an Outperform rating on Cohen & Steers (NYSE:CNS) with a price target of $81.00, following the asset manager’s latest assets under management (AUM) report.
Cohen & Steers reported a slight increase in AUM to $88.9 billion, driven by market gains but offset by organic decay of 2.5%, which rises to 3.3% when including Japan sub-advisory distributions. Net outflows totaled $184 million, compared to $88 million in the previous month and below Evercore’s expectation of $600 million.
The wealth management channel showed positive flows due to seasonal reinvested distributions, while the institutional advisory segment experienced net redemptions. Notably, the retail channel appeared to absorb approximately $300 million of announced institutional mandates that were expected to exit during the month. The company maintains healthy profitability metrics, with a return on equity of 35% and gross profit margins of 47.2%.
Retail posted a positive 7% flow rate, equivalent to $260 million in net inflows. In contrast, the institutional channel recorded a 19% outflow rate, primarily due to advisory outflows of $526 million, following mixed results in previous months.
The sub-advisory segment of institutional business saw modest outflows of $19 million, representing a 1.6% negative rate, matching May’s performance. Evercore noted that Cohen & Steers’ unfunded institutional pipeline stood at only $100 million, indicating a need for rebuilding.
In other recent news, Cohen & Steers reported preliminary assets under management of $88.9 billion as of June 30, 2025. This marks a modest increase from the previous month, driven by market appreciation despite some net outflows and distributions. The company also announced a cash dividend of $0.62 per share for the second quarter of 2025, payable in May, which underscores its commitment to shareholder returns. Meanwhile, BofA Securities initiated coverage on Cohen & Steers with an Underperform rating, citing concerns about low organic growth and challenges in the real estate sector. Additionally, Cohen & Steers appointed Brad Ispass to lead its new Enterprise Wealth Group, aiming to expand its presence in the U.S. wealth management market. The firm also named Seth Laughlin as Senior Vice President and Head of Real Estate Strategy & Research, enhancing its focus on long-term real estate investment opportunities. These recent developments reflect strategic moves by Cohen & Steers to navigate market conditions and expand its offerings.
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