Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-32236 | |
Entity Registrant Name | COHEN & STEERS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 14-1904657 | |
Entity Address, Address Line One | 280 Park Avenue, | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10017 | |
City Area Code | 212 | |
Local Phone Number | 832-3232 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | CNS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 48,706,340 | |
Entity Central Index Key | 0001284812 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Assets: | |||
Cash and cash equivalents | $ 161,957 | $ 184,373 | |
Investments ($122,308 and $127,912) | [1] | 201,712 | 154,654 |
Accounts receivable | 78,844 | 84,090 | |
Due from brokers ($1,272 and $1,340) | [1] | 2,930 | 3,567 |
Property and equipment—net | 8,621 | 8,938 | |
Operating lease right-of-use assets—net | 14,016 | 22,009 | |
Goodwill and intangible assets—net | 18,240 | 19,696 | |
Other assets ($406 and $1,589) | [1] | 20,012 | 15,360 |
Total assets | 506,332 | 492,687 | |
Liabilities: | |||
Accrued compensation and benefits | 62,371 | 79,167 | |
Distribution and service fees payable | 9,724 | 10,183 | |
Operating lease liabilities | 15,623 | 24,525 | |
Income tax payable | 7,497 | 22,611 | |
Due to brokers ($1,315 and $926) | [1] | 4,460 | 927 |
Other liabilities and accrued expenses ($748 and $689) | [1] | 13,497 | 10,948 |
Total liabilities | 113,172 | 148,361 | |
Commitments and contingencies | |||
Redeemable noncontrolling interests | 77,530 | 89,143 | |
Stockholders' equity: | |||
Common stock, $0.01 par value; 500,000,000 shares authorized; 55,018,253 and 54,267,309 shares issued at September 30, 2022 and December 31, 2021 respectively | 550 | 543 | |
Additional paid-in capital | 755,487 | 715,847 | |
Accumulated deficit | (176,235) | (231,967) | |
Accumulated other comprehensive loss | (14,947) | (5,886) | |
Treasury stock, at cost, 6,314,661 and 5,997,239 shares at September 30, 2022 and December 31, 2021, respectively | (249,225) | (223,354) | |
Total stockholders' equity | 315,630 | 255,183 | |
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ 506,332 | $ 492,687 | |
[1]Asset and liability amounts in parentheses represent the aggregated balances at September 30, 2022 and December 31, 2021 attributable to variable interest entities consolidated by the Company. Refer to Note 4, Investments for further discussion. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition - (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Investments ($122,308 and $127,912) | [1] | $ 201,712 | $ 154,654 |
Other assets | [1] | 20,012 | 15,360 |
Due to brokers ($1,315 and $926) | [1] | 4,460 | 927 |
Other liabilities and accrued expenses | [1] | $ 13,497 | $ 10,948 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | |
Common stock, shares issued (in shares) | 55,018,253 | 54,267,309 | |
Treasury stock, shares (in shares) | 6,314,661 | 5,997,239 | |
Total | |||
Investments ($122,308 and $127,912) | $ 122,308 | $ 127,912 | |
Due from brokers | 1,272 | 1,340 | |
Other assets | 406 | 1,589 | |
Due to brokers ($1,315 and $926) | 1,315 | 926 | |
Other liabilities and accrued expenses | $ 748 | $ 689 | |
[1]Asset and liability amounts in parentheses represent the aggregated balances at September 30, 2022 and December 31, 2021 attributable to variable interest entities consolidated by the Company. Refer to Note 4, Investments for further discussion. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue: | ||||
Total revenue | $ 139,951 | $ 154,187 | $ 441,571 | $ 424,203 |
Expenses: | ||||
Employee compensation and benefits | 51,669 | 53,092 | 160,269 | 152,095 |
Distribution and service fees | 16,418 | 19,906 | 68,605 | 55,260 |
General and administrative | 13,548 | 11,981 | 40,296 | 33,821 |
Depreciation and amortization | 1,135 | 977 | 3,235 | 3,161 |
Total expenses | 82,770 | 85,956 | 272,405 | 244,337 |
Operating income | 57,181 | 68,231 | 169,166 | 179,866 |
Non-operating income (loss): | ||||
Interest and dividend income—net | 1,541 | 719 | 4,326 | 2,172 |
Gain (loss) from investments—net | (5,920) | (418) | (30,926) | 11,919 |
Foreign currency gain (loss)—net | 2,405 | 945 | 4,734 | 644 |
Total non-operating income (loss) | (1,974) | 1,246 | (21,866) | 14,735 |
Income before provision for income taxes | 55,207 | 69,477 | 147,300 | 194,601 |
Provision for income taxes | 15,593 | 18,090 | 34,696 | 38,378 |
Net income | 39,614 | 51,387 | 112,604 | 156,223 |
Net (income) loss attributable to redeemable noncontrolling interests | 4,956 | 96 | 25,940 | (9,309) |
Net income attributable to common stockholders | $ 44,570 | $ 51,483 | $ 138,544 | $ 146,914 |
Earnings per share attributable to common stockholders: | ||||
Basic (in dollars per share) | $ 0.91 | $ 1.06 | $ 2.84 | $ 3.04 |
Diluted (in dollars per share) | $ 0.90 | $ 1.05 | $ 2.81 | $ 3 |
Weighted average shares outstanding: | ||||
Basic (shares) | 48,815 | 48,386 | 48,765 | 48,273 |
Diluted (shares) | 49,317 | 49,262 | 49,287 | 48,976 |
Investment advisory and administration fees | ||||
Revenue: | ||||
Total revenue | $ 130,885 | $ 143,638 | $ 412,209 | $ 394,907 |
Distribution and service fees | ||||
Revenue: | ||||
Total revenue | 8,557 | 9,900 | 27,431 | 27,371 |
Other | ||||
Revenue: | ||||
Total revenue | $ 509 | $ 649 | $ 1,931 | $ 1,925 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 39,614 | $ 51,387 | $ 112,604 | $ 156,223 |
Net (income) loss attributable to redeemable noncontrolling interests | 4,956 | 96 | 25,940 | (9,309) |
Net income attributable to common stockholders | 44,570 | 51,483 | 138,544 | 146,914 |
Foreign currency translation gain (loss) | (3,896) | (1,456) | (9,061) | (1,852) |
Total comprehensive income attributable to common stockholders | $ 40,674 | $ 50,027 | $ 129,483 | $ 145,062 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholders' Equity and Redeemable Noncontrolling Interest (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Redeemable Noncontrolling Interests |
Beginning balance at Dec. 31, 2020 | $ 174,239 | $ 535 | $ 670,142 | $ (291,542) | $ (4,134) | $ (200,762) | |
Beginning balance (redeemable noncontrolling interest) at Dec. 31, 2020 | $ 50,665 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends ($0.55 per share) | (67,048) | (67,048) | |||||
Issuance of common stock | 1,008 | 7 | 1,001 | ||||
Repurchase of common stock | (21,367) | (21,367) | |||||
Issuance of restricted stock units—net | 3,754 | 3,754 | |||||
Amortization of restricted stock units—net | 28,893 | 28,893 | |||||
Net income (loss) | 146,914 | 146,914 | |||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 9,309 | ||||||
Other comprehensive income (loss) | (1,852) | (1,852) | |||||
Net contributions (distributions) attributable to redeemable noncontrolling interests | 6,058 | ||||||
Ending balance at Sep. 30, 2021 | $ 264,541 | 542 | 703,790 | (211,676) | (5,986) | (222,129) | |
Ending balance (redeemable noncontrolling interest) at Sep. 30, 2021 | 66,032 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared per share (in dollars per share) | $ 1.35 | ||||||
Beginning balance at Jun. 30, 2021 | $ 225,888 | 542 | 692,719 | (240,744) | (4,530) | (222,099) | |
Beginning balance (redeemable noncontrolling interest) at Jun. 30, 2021 | 66,081 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends ($0.55 per share) | (22,415) | (22,415) | |||||
Issuance of common stock | 267 | 0 | 267 | ||||
Repurchase of common stock | (30) | (30) | |||||
Issuance of restricted stock units—net | 1,321 | 1,321 | |||||
Amortization of restricted stock units—net | 9,483 | 9,483 | |||||
Net income (loss) | 51,483 | 51,483 | |||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | (96) | ||||||
Other comprehensive income (loss) | (1,456) | (1,456) | |||||
Net contributions (distributions) attributable to redeemable noncontrolling interests | 47 | ||||||
Ending balance at Sep. 30, 2021 | $ 264,541 | 542 | 703,790 | (211,676) | (5,986) | (222,129) | |
Ending balance (redeemable noncontrolling interest) at Sep. 30, 2021 | 66,032 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared per share (in dollars per share) | $ 0.45 | ||||||
Beginning balance at Dec. 31, 2021 | $ 255,183 | 543 | 715,847 | (231,967) | (5,886) | (223,354) | |
Beginning balance (redeemable noncontrolling interest) at Dec. 31, 2021 | 89,143 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends ($0.55 per share) | (82,812) | (82,812) | |||||
Issuance of common stock | 1,037 | 7 | 1,030 | ||||
Repurchase of common stock | (25,871) | (25,871) | |||||
Issuance of restricted stock units—net | 4,037 | 4,037 | |||||
Amortization of restricted stock units—net | 34,573 | 34,573 | |||||
Net income (loss) | 138,544 | 138,544 | |||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | (25,940) | ||||||
Other comprehensive income (loss) | (9,061) | (9,061) | |||||
Net contributions (distributions) attributable to redeemable noncontrolling interests | 134,624 | ||||||
Net consolidation (deconsolidation) of investment vehicles | (120,297) | ||||||
Ending balance at Sep. 30, 2022 | $ 315,630 | 550 | 755,487 | (176,235) | (14,947) | (249,225) | |
Ending balance (redeemable noncontrolling interest) at Sep. 30, 2022 | 77,530 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared per share (in dollars per share) | $ 1.65 | ||||||
Beginning balance at Jun. 30, 2022 | $ 289,385 | 550 | 742,144 | (193,146) | (11,051) | (249,112) | |
Beginning balance (redeemable noncontrolling interest) at Jun. 30, 2022 | 185,998 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends ($0.55 per share) | (27,659) | (27,659) | |||||
Issuance of common stock | 237 | 0 | 237 | ||||
Repurchase of common stock | (113) | (113) | |||||
Issuance of restricted stock units—net | 1,396 | 1,396 | |||||
Amortization of restricted stock units—net | 11,710 | 11,710 | |||||
Net income (loss) | 44,570 | 44,570 | |||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | (4,956) | ||||||
Other comprehensive income (loss) | (3,896) | (3,896) | |||||
Net contributions (distributions) attributable to redeemable noncontrolling interests | 16,785 | ||||||
Net consolidation (deconsolidation) of investment vehicles | (120,297) | ||||||
Ending balance at Sep. 30, 2022 | $ 315,630 | $ 550 | $ 755,487 | $ (176,235) | $ (14,947) | $ (249,225) | |
Ending balance (redeemable noncontrolling interest) at Sep. 30, 2022 | $ 77,530 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared per share (in dollars per share) | $ 0.55 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 112,604 | $ 156,223 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Stock-based compensation expense—net | 36,462 | 30,993 |
Depreciation and amortization | 4,145 | 4,331 |
Amortization of right-of-use assets | 8,139 | 7,715 |
(Gain) loss from investments—net | 30,926 | (11,919) |
Deferred income taxes | (1,445) | 1,813 |
Foreign currency (gain) loss | 2,774 | 2,445 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,472 | (21,907) |
Due from brokers | (2,446) | 1,970 |
Investments within consolidated investment vehicles | (162,936) | (9,784) |
Other assets | 3,892 | (1,317) |
Accrued compensation and benefits | (16,796) | 7,844 |
Distribution and service fees payable | (459) | 3,523 |
Operating lease liabilities | (9,048) | (8,621) |
Due to brokers | 7,441 | 2,056 |
Income tax payable | (14,797) | 8,447 |
Other liabilities and accrued expenses | 2,719 | (2,846) |
Net cash provided by (used in) operating activities | 3,647 | 170,966 |
Cash flows from investing activities: | ||
Purchases of investments | (132,491) | (44,399) |
Proceeds from sales and maturities of investments | 90,530 | 83,547 |
Purchases of property and equipment | (2,948) | (1,880) |
Net cash provided by (used in) investing activities | (44,909) | 37,268 |
Cash flows from financing activities: | ||
Issuance of common stock—net | 881 | 856 |
Repurchase of common stock | (25,871) | (21,367) |
Dividends to stockholders | (80,508) | (65,224) |
Net contributions (distributions) from redeemable noncontrolling interests | 134,624 | 6,058 |
Net cash provided by (used in) financing activities | 29,126 | (79,677) |
Net increase (decrease) in cash and cash equivalents | (12,136) | 128,557 |
Effect of foreign exchange rate changes on cash and cash equivalents | (7,979) | (1,317) |
Cash and cash equivalents, beginning of the year | 185,356 | 41,232 |
Cash and cash equivalents, end of the year | $ 165,241 | $ 168,472 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows - Supplemental Information $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Aug. 01, 2022 | ||
Cash and cash equivalents | $ 161,957 | $ 161,957 | $ 168,472 | ||
Investments and Cash | [1] | 3,284 | 3,284 | 0 | |
Total cash and cash equivalents within condensed consolidated statements of cash flows | 165,241 | 165,241 | 168,472 | ||
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||||
Income taxes paid | 50,900 | 28,100 | |||
Restricted stock unit dividend equivalents, net of forfeitures | 2,300 | $ 1,800 | |||
Proportionate ownership interest | 0.10 | ||||
Net consolidation (deconsolidation) of investment vehicles | $ 120,297 | ||||
SICAV RAP | |||||
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||||
Net consolidation (deconsolidation) of investment vehicles | $ 120,300 | ||||
[1]Cash included in investments represents operating cash held in a consolidated investment vehicle. |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Cohen & Steers, Inc. (CNS) was organized as a Delaware corporation on March 17, 2004. CNS is the holding company for its direct and indirect subsidiaries, including Cohen & Steers Capital Management, Inc. (CSCM), Cohen & Steers Securities, LLC (CSS), Cohen & Steers UK Limited (CSUK), Cohen & Steers Ireland Limited (CSIL), Cohen & Steers Asia Limited (CSAL) and Cohen & Steers Japan Limited (CSJL) (collectively, the Company). The Company is a global investment manager specializing in real assets and alternative income, including real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the Company is headquartered in New York City, with offices in London, Dublin, Hong Kong and Tokyo. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The condensed consolidated financial statements set forth herein include the accounts of CNS and its direct and indirect subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements of the Company included herein are unaudited and have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the interim results have been made. The Company's condensed consolidated financial statements and the related notes should be read together with the consolidated financial statements and the related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. Accounting Estimates —The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Management believes the estimates used in preparing the condensed consolidated financial statements are reasonable and prudent. Actual results could differ from those estimates. Consolidation of Investment Vehicles —The Company's financial interests in investment vehicles, including the management fees that are received, are evaluated at inception and thereafter, if there is a reconsideration event, in order to determine whether to apply the Variable Interest Entity (VIE) model or the Voting Interest Entity (VOE) model. A VIE is an entity in which either the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support or the group of holders of the equity investment at risk lack certain characteristics of a controlling financial interest. The primary beneficiary is the entity that has the power to direct the activities of the VIE that most significantly affect its performance, and the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. Subscriptions and redemptions or amendments to the governing documents of the respective entities could affect an entity's status as a VIE or the determination of the primary beneficiary. Limited partnerships and similar entities are determined to be a VIE when the Company is the general partner and the limited partners do not hold substantive kick-out or participation rights. The Company assesses whether it is the primary beneficiary of any VIEs identified by evaluating its economic interests in the entity held either directly by the Company and its affiliates or indirectly through employees. VIEs for which the Company is deemed to be the primary beneficiary are consolidated. Investments that are determined to be VOEs are consolidated when the Company’s ownership interest is greater than 50% of the outstanding voting interests of the vehicle. The Company records noncontrolling interests in consolidated investment vehicles for which the Company’s ownership is less than 100%. Cash and Cash Equivalents —Cash and cash equivalents are on deposit with several highly rated financial institutions and include short-term, highly liquid investments, which are readily convertible into cash and have original maturities of three months or less. Due from/to Brokers —The Company, including the consolidated investment vehicles, may transact with brokers for certain investment activities. The clearing and custody operations for these investment activities are performed pursuant to contractual agreements. The due from/to brokers balances represent cash and/or cash collateral balances at brokers/custodians and/or receivables and payables for unsettled securities transactions with brokers/custodians. Investments —Management of the Company determines the appropriate classification of its investments at the time of purchase and re-evaluates such determination no less than on a quarterly basis. The Company's investments are categorized as follows: • Equity investments at fair value are comprised of corporate investments and investments held within the consolidated investment vehicles, which generally represent common stocks, limited partnership interests, master limited partnership interests, preferred securities and other seed investments. • Trading investments are comprised of corporate investments and investments held within the consolidated investment vehicles, which generally represent U.S. Treasury securities and investment-grade corporate debt securities. • Equity method investments, which generally represent seed investments in investment vehicles for which the Company is able to exercise significant influence but not control over the investment. When using the equity method, the Company recognizes its respective share of net income or loss for the period which is recorded in gain (loss) from investments—net in the Company's condensed consolidated statements of operations. Realized and unrealized gains and losses on equity investments at fair value, trading investments and equity method investments are recorded in gain (loss) from investments—net in the Company's condensed consolidated statements of operations. From time to time, the Company, including the consolidated investment vehicles, may enter into derivative contracts, including options, futures and swaps contracts, to gain exposure to the underlying commodities markets or to economically hedge market risk of the underlying portfolios. Gains and losses on derivative contracts are recorded in gain (loss) from investments—net in the Company's condensed consolidated statements of operations. The fair values of these instruments are recorded in other assets or other liabilities and accrued expenses on the Company's condensed consolidated statements of financial condition. Additionally, from time to time, the Company, including the consolidated investment vehicles, may enter into forward foreign exchange contracts to economically hedge currency exposure. These instruments are measured at fair value based on the prevailing forward exchange rate with gains and losses recorded in foreign currency gain (loss)—net in the Company’s condensed consolidated statements of operations. The fair values of these contracts are recorded in other assets or other liabilities and accrued expenses on the Company’s condensed consolidated statements of financial condition. Leases —The Company determines if an arrangement is a lease at inception. The Company has operating leases for corporate offices and certain information technology equipment which are included in operating lease right-of-use (ROU) assets and operating lease liabilities on the Company’s condensed consolidated statements of financial condition. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent obligations to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the net present value of lease payments over the life of the lease. The majority of the Company’s lease agreements do not provide an implicit rate. As a result, the Company used its estimated incremental borrowing rate based on the information available as of lease commencement dates in determining the present value of lease payments. The operating lease ROU assets reflect any upfront lease payments made as well as lease incentives received. The lease terms may include options to extend or terminate the lease and these are factored into the determination of the ROU asset and lease liability at lease inception when and if it is reasonably certain that the Company will exercise that option. Lease expense for fixed lease payments is recognized on a straight-line basis over the lease term. The Company has certain lease agreements with non-lease components such as maintenance and executory costs, which are accounted for separately and not included in ROU assets. ROU assets are tested for impairment whenever changes in facts or circumstances indicate that the carrying amount of an asset may not be recoverable. Modification of a lease term would result in remeasurement of the lease liability and a corresponding adjustment to the ROU assets. Redeemable Noncontrolling Interests —Redeemable noncontrolling interests represent third-party interests in the consolidated investment vehicles. These interests are redeemable at the option of the investors and therefore are not treated as permanent equity. Redeemable noncontrolling interests are recorded at fair value which approximates the redemption value at each reporting period. Investment Advisory and Administration Fees —The Company earns revenue by providing asset management services to institutional accounts, open-end and closed-end funds as well as model-based portfolios. Investment advisory fees are earned pursuant to the terms of investment management agreements and are generally based on a contractual fee rate applied to the average assets under management. The Company also earns administration fees from certain open-end and closed-end funds pursuant to the terms of underlying administration contracts. Administration fees are based on the average daily assets under management of such funds. Investment advisory and administration fee revenue is recognized when earned and is recorded net of any fund reimbursements. The investment advisory and administration contracts each include a single performance obligation as the services provided are not separately identifiable and are accounted for as a series satisfied over time using a time-based method (days elapsed). Additionally, investment advisory and administration fees represent variable consideration, as fees are based on average assets under management which fluctuate daily. In certain instances, the Company may earn performance fees when specified performance hurdles are met during the performance period. Performance fees are forms of variable consideration and are not recognized until it becomes probable that there will not be a significant reversal of the cumulative revenue recognized . Distribution and Service Fee Revenue —Distribution and service fee revenue is based on the average daily net assets of certain share classes of open-end funds distributed by CSS. Distribution and service fee revenue is earned daily and is recorded gross of any third-party distribution and service fee expense for applicable share classes. Distribution fee agreements include a single performance obligation that is satisfied at a point in time when an investor purchases shares in an open-end fund. For all periods presented, a portion of the distribution fee revenue recognized in the period may relate to performance obligations satisfied (or partially satisfied) in prior periods. Service fee agreements include a single performance obligation as the services provided are not separately identifiable and are accounted for as a series satisfied over time using a time-based method (days elapsed). Additionally, distribution and service fees represent variable consideration, as fees are based on average assets under management which fluctuate daily. Distribution and Service Fee Expense —Distribution and service fee expense includes distribution fees, shareholder servicing fees and intermediary assistance payments. Distribution fees represent payments made to qualified intermediaries for assistance in connection with the distribution of certain open-end funds' shares and for other expenses such as advertising, printing and distribution of prospectuses to investors. Such amounts may also be used to pay financial intermediaries for services as specified in the terms of written agreements complying with Rule 12b-1 of the Investment Company Act of 1940. Distribution fees are based on average daily net assets under management of certain share classes of certain of the funds. Shareholder servicing fees represent payments made to qualified intermediaries for shareholder account service and maintenance. These services are provided pursuant to written agreements with such qualified institutions. Shareholder servicing fees are generally based on average daily net assets under management. Intermediary assistance payments represent payments to qualified intermediaries for activities related to distribution, shareholder servicing as well as marketing and support of certain open-end funds and are incremental to those described above. Intermediary assistance payments are generally based on average daily net assets under management. Stock-based Compensation —The Company recognizes compensation expense for the grant-date fair value of restricted stock unit awards to certain employees. This expense is recognized over the period during which employees are required to provide service. Forfeitures are recorded as incurred. Any change to the key terms of an employee’s award subsequent to the grant date is evaluated and, if necessary, accounted for as a modification. If the modification results in the remeasurement of the fair value of the award, the remeasured compensation cost is recognized over the remaining service period. Income Taxes —The Company records the current and deferred tax consequences of all transactions that have been recognized in the condensed consolidated financial statements in accordance with the provisions of the enacted tax laws. Deferred tax assets are recognized for temporary differences that will result in deductible amounts in future years at tax rates that are expected to apply in those years. Deferred tax liabilities are recognized for temporary differences that will result in taxable income in future years at tax rates that are expected to apply in those years. The Company records a valuation allowance, when necessary, to reduce deferred tax assets to an amount that more likely than not will be realized. The effective tax rate for interim periods is based on the Company's best estimate of the effective tax rate expected to be applied to the full fiscal year adjusted for discrete tax items during the period. The calculation of tax liabilities involves uncertainties in the application of complex tax laws and regulations across the Company's global operations. A tax benefit from an uncertain tax position is recognized when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, on the basis of the technical merits. The Company records potential interest and penalties related to uncertain tax positions in the provision for income taxes in the condensed consolidated statements of operations. Currency Translation and Transactions —Assets and liabilities of subsidiaries having non-U.S. dollar functional currencies are translated at exchange rates at the applicable condensed consolidated statement of financial condition date. Revenue and expenses of such subsidiaries are translated at average exchange rates during the period. The gains or losses resulting from translating non-U.S. dollar functional currency into U.S. dollars are included in the Company's condensed consolidated statements of comprehensive income. Gains or losses resulting from transactions denominated in currencies other than the U.S. dollar within certain foreign subsidiaries and gains and losses arising on revaluation of U.S. dollar-denominated assets and liabilities held by certain foreign subsidiaries are included in foreign currency gain (loss)—net in the Company’s condensed consolidated statements of operations. The cumulative translation adjustment was $(14.9) million and $(5.9) million at September 30, 2022 and December 31, 2021, respectively, and was reported within accumulated other comprehensive income (loss) on the condensed consolidated statements of financial condition. Comprehensive Income —The Company reports all changes in comprehensive income in the condensed consolidated statements of comprehensive income. Comprehensive income generally includes net income or loss attributable to common stockholders and amounts attributable to foreign currency translation gain (loss). Recently Issued Accounting Pronouncements —In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The standard clarifies that contractual sale restrictions are not considered in measuring the fair value of equity securities, which would be a change in practice for certain entities. The ASU also indicates that a contractual sale restriction is not a separate unit of account, and requires new disclosures for all entities with equity securities subject to a contractual sale restriction. This new guidance will be effective on January 1, 2024. The Company does not expect that the adoption of this new standard will have a material effect on the Company's condensed consolidated financial statements and related disclosures. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following tables summarize revenue recognized from contracts with customers by client domicile and by investment vehicle: Three Months Ended Nine Months Ended (in thousands) 2022 2021 2022 2021 Client domicile: North America $ 122,944 $ 134,243 $ 387,572 $ 368,685 Japan 8,824 9,960 27,610 28,021 Europe, Middle East and Africa 4,986 6,593 16,344 17,869 Asia Pacific excluding Japan 3,197 3,391 10,045 9,628 Total $ 139,951 $ 154,187 $ 441,571 $ 424,203 Three Months Ended Nine Months Ended (in thousands) 2022 2021 2022 2021 Investment vehicle: Open-end funds $ 80,500 $ 88,026 $ 256,246 $ 237,082 Institutional accounts 32,500 38,039 103,612 106,407 Closed-end funds 26,951 28,122 81,713 80,714 Total $ 139,951 $ 154,187 $ 441,571 $ 424,203 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2022 | |
Investments [Abstract] | |
Investments | Investments The following table summarizes the Company's investments: (in thousands) September 30, 2022 December 31, 2021 Equity investments at fair value $ 143,963 $ 130,930 Trading 57,729 23,711 Equity method 20 13 Total investments $ 201,712 $ 154,654 The following table summarizes gain (loss) from investments —net : Three Months Ended Nine Months Ended (in thousands) 2022 2021 2022 2021 Net realized gains (losses) during the period $ (653) $ 2,274 $ 10,192 $ 6,730 Net unrealized gains (losses) during the period on investments still held at the end of the period (5,267) (2,692) (41,118) 5,189 Gain (loss) from investments—net (1) $ (5,920) $ (418) $ (30,926) $ 11,919 ________________________ (1) Included gain (loss) on derivative contracts, which are utilized to hedge a portion of the market risk of the Company's seed investments. At September 30, 2022, the Company's consolidated VIEs included the Cohen & Steers SICAV Global Listed Infrastructure Fund (GLI SICAV), the Cohen & Steers SICAV Global Real Estate Fund (SICAV GRE), the Cohen & Steers Co-Investment Partnership, L.P. (GRP-CIP) and the Cohen & Steers Real Estate Opportunities Fund, L.P. (REOF). During the nine months ended September 30, 2022, SICAV RAP was deconsolidated. At December 31, 2021, the Company's consolidated VIEs included GLI SICAV, SICAV GRE, SICAV RAP, GRP-CIP and REOF. The following tables summarize the condensed consolidated statements of financial condition attributable to the Company's consolidated VIEs: (in thousands) September 30, 2022 GLI SICAV SICAV GRE GRP-CIP REOF Total Assets (1) Investments $ 31,891 $ 69,631 $ 150 $ 20,636 $ 122,308 Due from brokers 523 717 32 — 1,272 Other assets 95 260 — 51 406 Total assets 32,509 70,608 182 20,687 123,986 Liabilities (1) Due to brokers $ 835 $ 480 $ — $ — $ 1,315 Other liabilities and accrued expenses 58 170 5 515 748 Total liabilities 893 650 5 515 2,063 Net assets $ 31,616 $ 69,958 $ 177 $ 20,172 $ 121,923 Attributable to the Company $ 17,576 $ 10,832 $ 177 $ 15,808 $ 44,393 Attributable to redeemable non-controlling interests 14,040 59,126 — 4,364 77,530 Net assets $ 31,616 $ 69,958 $ 177 $ 20,172 $ 121,923 _________________________ (1) The assets may only be used to settle obligations of each VIE and the liabilities are the sole obligation of each VIE, for which creditors do not have recourse to the general credit of the Company. December 31, 2021 (in thousands) GLI SICAV SICAV GRE SICAV RAP GRP-CIP REOF Total Assets (1) Investments $ 8,266 $ 57,354 $ 59,493 $ 150 $ 2,649 $ 127,912 Due from brokers — 1,107 86 147 — 1,340 Other assets 42 214 740 — 593 1,589 Total assets 8,308 58,675 60,319 297 3,242 130,841 Liabilities (1) Due to brokers $ — $ 347 $ 579 $ — $ — $ 926 Other liabilities and accrued expenses 35 126 108 5 415 689 Total liabilities 35 473 687 5 415 1,615 Net assets $ 8,273 $ 58,202 $ 59,632 $ 292 $ 2,827 $ 129,226 Attributable to the Company $ 8,261 $ 15,355 $ 13,348 $ 292 $ 2,827 $ 40,083 Attributable to redeemable non-controlling interests 12 42,847 46,284 — — 89,143 Net assets $ 8,273 $ 58,202 $ 59,632 $ 292 $ 2,827 $ 129,226 _________________________ (1) The assets may only be used to settle obligations of each VIE and the liabilities are the sole obligation of each VIE, for which creditors do not have recourse to the general credit of the Company. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Accounting Standards Codification Topic 820, Fair Value Measurement (ASC 820) specifies a hierarchy of valuation classifications based on whether the inputs to the valuation techniques used in each valuation classification are observable or unobservable. These classifications are summarized in the three broad levels listed below: • Level 1—Unadjusted quoted prices for identical instruments in active markets. • Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable. • Level 3—Valuations derived from valuation techniques in which significant inputs or significant value drivers are unobservable. Inputs used to measure fair value might fall in different levels of the fair value hierarchy, in which case the Company defaults to the lowest level input that is significant to the fair value measurement in its entirety. These levels are not necessarily an indication of the risk or liquidity associated with the investments. The following tables present fair value measurements: September 30, 2022 (in thousands) Level 1 Level 2 Level 3 Investments Measured at NAV (1) Total Cash equivalents $ 91,901 $ — $ — $ — $ 91,901 Equity investments at fair value: Common stocks $ 127,672 $ 768 $ — $ — $ 128,440 Company-sponsored funds 191 — — — 191 Limited partnership interests — — 12,610 1,357 13,967 Master limited partnership interests 410 — — — 410 Preferred securities 814 11 — — 825 Other — — — 130 130 Total $ 129,087 $ 779 $ 12,610 $ 1,487 $ 143,963 Trading investments: Fixed income $ — $ 57,729 $ — $ — $ 57,729 Equity method investments $ — $ — $ — $ 20 $ 20 Total investments $ 129,087 $ 58,508 $ 12,610 $ 1,507 $ 201,712 Derivatives - assets: Total return swaps - commodities $ — $ 75 $ — $ — $ 75 Total return swaps - equities — 3,067 — — 3,067 Forward contracts - foreign exchange — 1,439 — — 1,439 Total $ — $ 4,581 $ — $ — $ 4,581 Derivatives - liabilities: Total return swaps - commodities $ — $ 116 $ — $ — $ 116 Forward contracts - foreign exchange — 4 — — 4 Total $ — $ 120 $ — $ — $ 120 ________________________ (1) Comprised of certain investments measured at fair value using net asset value (NAV) as a practical expedient. December 31, 2021 (in thousands) Level 1 Level 2 Level 3 Investments Measured at NAV (1) Total Cash equivalents $ 104,591 $ — $ — $ — $ 104,591 Equity investments at fair value: Common stocks $ 126,301 $ 116 $ — $ — $ 126,417 Limited partnership interests — — — 1,816 1,816 Master limited partnership interests 986 — — — 986 Preferred securities 1,465 — — — 1,465 Other 103 — — 143 246 Total $ 128,855 $ 116 $ — $ 1,959 $ 130,930 Trading investments: Fixed income $ — $ 23,711 $ — $ — $ 23,711 Equity method investments $ — $ — $ — $ 13 $ 13 Total investments $ 128,855 $ 23,827 $ — $ 1,972 $ 154,654 Derivatives - assets: Total return swaps - commodities (2) $ — $ 481 $ — $ — $ 481 Forward contracts - foreign exchange — 209 — — 209 Total $ — $ 690 $ — $ — $ 690 Derivatives - liabilities: Total return swaps - commodities $ — $ 17 $ — $ — $ 17 Total return swaps - equities — 867 — — 867 Forward contracts - foreign exchange — 3 — — 3 Total $ — $ 887 $ — $ — $ 887 ________________________ (1) Comprised of certain investments measured at fair value using NAV as a practical expedient. (2) Included total return swaps - commodities held by consolidated investment vehicles. Equity investments at fair value classified as Level 2 were comprised of common stocks for which quoted prices in active markets are not available. Fair values for the common stocks classified as Level 2 were generally based on quoted prices for similar instruments in active markets. Equity investments at fair value classified as Level 3 as of September 30, 2022 were comprised of a limited partnership interest in a joint venture that holds an investment in private real estate. Trading investments classified as Level 2 were comprised of U.S. Treasury securities and corporate debt securities. Fair values were generally determined using third-party pricing services. The pricing services may utilize evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information. Investments measured at NAV were comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient as follows: • Equity investments at fair value included: ◦ limited partnership interests in private real estate funds; and ◦ the Company's co-investment in a Cayman trust invested in global listed infrastructure securities (which is included in "Other" in the leveling table). • Equity method investments included the Company's partnership interests in Cohen & Steers Global Realty Partners III-TE, L.P. (GRP-TE) and Cohen & Steers Global Listed Infrastructure Fund L.P. (LPGI). GRP-TE invests in non-registered real estate funds and LPGI invests in global infrastructure securities. The Company's ownership interest in GRP-TE was approximately 0.2% and 0.01% at September 30, 2022 and December 31, 2021, respectively. The Company's ownership interest in LPGI was approximately 0.01% at September 30, 2022 and no ownership at December 31, 2021. At September 30, 2022 and December 31, 2021, the Company did not have the ability to redeem its limited partnership interests in private real estate funds or its interest in GRP-TE. There were no contractual restrictions on the Company's ability to redeem its interest in the Cayman trust or LPGI. Investments measured at NAV as a practical expedient have not been classified in the fair value hierarchy. The amounts presented in the above tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the condensed consolidated statements of financial condition. Swap contracts classified as Level 2 were valued based on the underlying futures contracts or equity indices. Foreign currency exchange contracts classified as Level 2 were valued based on the prevailing forward exchange rate, which is an input that is observable in active markets. The following table summarizes the changes in Level 3 investments measured at fair value on a recurring basis: Three Months Ended Nine Months Ended (in thousands) 2022 2021 2022 2021 Balance at beginning of period $ 18,592 $ — $ — $ — Purchases/contributions — — 19,380 — Sales/distributions (5,874) — (5,874) — Unrealized gains (losses) (108) — (896) — Balance at end of period $ 12,610 $ — $ 12,610 $ — Unrealized gains (losses) and realized gains (losses), if any, in the above table were recorded in gain (loss) from investments—net in the Company's condensed consolidated statements of operations. Valuation Techniques In certain instances, debt and equity securities are valued on the basis of prices from an orderly transaction between market participants provided by reputable broker-dealers or independent pricing services. In determining the value of a particular investment, independent pricing services may use information with respect to transactions in such investments, broker quotes, pricing matrices, market transactions in comparable investments and various relationships between investments. As part of its independent price verification process, the Company generally performs reviews of valuations provided by broker-dealers or independent pricing services. Investments in funds are valued at their closing price or NAV (or its equivalent) as a practical expedient. In the absence of observable market prices, the Company values its investments using valuation methodologies applied on a consistent basis. For some investments, little market activity may exist; management's determination of fair value is then based on the best information available in the circumstances, and may incorporate management's own assumptions and involve a significant degree of judgment, taking into consideration a combination of internal and external factors. Such investments are valued no less than on a quarterly basis, taking into consideration any changes in key inputs and changes in economic and other relevant conditions, and valuation models are updated accordingly. Additionally, the Company has retained an independent valuation services firm to assist in the determination of the fair value of certain private real estate investments. The Company has established a valuation committee, comprised of senior members from various departments within the Company, to administer, implement and oversee the valuation policies and procedures. The following table summarizes the valuation techniques and significant unobservable inputs approved by the Valuation Committee for Level 3 investments measured at fair value on a recurring basis: Fair Value Valuation Technique Unobservable Inputs Value Limited partnership interests $12,610 Discounted cash flow Discount rate 8.25% 7.25% Changes in the significant unobservable inputs in the above tables may result in a materially higher or lower fair value measurement. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The following tables summarize the notional amount and fair value of the outstanding derivative financial instruments, none of which were designated in a formal hedging relationship: As of September 30, 2022 Notional Amount Fair Value (1) (in thousands) Long Short Assets Liabilities Corporate derivatives: Total return swaps - commodities $ 2,247 $ 1,939 $ 75 $ 116 Total return swaps - equities — 28,327 3,067 — Forward contracts - foreign exchange — 16,599 1,439 4 Total corporate derivatives $ 2,247 $ 46,865 $ 4,581 $ 120 As of December 31, 2021 Notional Amount Fair Value (1) (in thousands) Long Short Assets Liabilities Corporate derivatives: Total return swaps - commodities $ 2,549 $ 3,810 $ 94 $ 17 Total return swaps - equities — 22,899 — 867 Forward contracts - foreign exchange — 11,969 209 3 Total corporate derivatives $ 2,549 $ 38,678 $ 303 $ 887 Derivatives held by consolidated investment vehicles: Total return swaps - commodities 10,931 — 387 — Total $ 13,480 $ 38,678 $ 690 $ 887 ________________________ (1) The fair value of derivative financial instruments is recorded in other assets and other liabilities and accrued expenses on the Company's condensed consolidated statements of financial condition. The Company's corporate derivatives include: • Total return equity and commodity swap contracts which are utilized to economically hedge a portion of the market risk of certain seed investments and to gain exposure in the commodities market for the purpose of establishing a performance track record; and • Forward foreign exchange contracts which are utilized to economically hedge currency exposure arising from certain non-U.S. dollar investment advisory fees. At December 31, 2021, non-corporate derivatives were comprised of commodity swap contracts that were utilized by certain of the consolidated investment vehicles to gain exposure in the commodities market as part of the vehicles' investment strategies. For corporate derivatives, cash included in due from brokers on the condensed consolidated statements of financial condition of $1.5 million and $2.2 million at September 30, 2022 and December 31, 2021, respectively, and U.S. Treasury securities included in investments of $0.2 million at December 31, 2021, were held as collateral for forward and swap contracts. At September 30, 2022, due to brokers included $3.1 million of cash collateral payable to trade counterparties. At December 31, 2021, for non-corporate derivatives, due to brokers included $0.5 million of cash collateral payable to trade counterparties. The following table summarizes net gains (losses) from derivative financial instruments: Three Months Ended Nine Months Ended (in thousands) 2022 2021 2022 2021 Corporate derivatives: Futures - commodities $ — $ 813 $ — $ 2,981 Total return swaps - commodities (27) (748) (242) (2,741) Total return swaps - equities 3,044 100 6,447 (2,408) Forward contracts - foreign exchange 839 156 1,229 633 Total corporate derivatives $ 3,856 $ 321 $ 7,434 $ (1,535) Derivatives held by consolidated investment vehicles: Total return swaps - commodities 828 619 3,988 1,691 Total (1) $ 4,684 $ 940 $ 11,422 $ 156 ________________________ (1) Gains and losses on futures and total return swap contracts are included in gain (loss) from investments—net in the Company's condensed consolidated statements of operations. Gains and losses on forward foreign exchange contracts are included in foreign currency gain (loss)—net in the Company's condensed consolidated statements of operations. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated by dividing net income attributable to common stockholders by the weighted average shares outstanding. Diluted earnings per share is calculated by dividing net income attributable to common stockholders by the total weighted average shares of common stock outstanding and common stock equivalents determined using the treasury stock method. Common stock equivalents are comprised of dilutive potential shares from restricted stock unit awards and are excluded from the computation if their effect is anti-dilutive. The following table reconciles income and share data used in the basic and diluted earnings per share computations: Three Months Ended Nine Months Ended (in thousands, except per share data) 2022 2021 2022 2021 Net income $ 39,614 $ 51,387 $ 112,604 $ 156,223 Net (income) loss attributable to redeemable noncontrolling interests 4,956 96 25,940 (9,309) Net income attributable to common stockholders $ 44,570 $ 51,483 $ 138,544 $ 146,914 Basic weighted average shares outstanding 48,815 48,386 48,765 48,273 Dilutive potential shares from restricted stock units 502 876 522 703 Diluted weighted average shares outstanding 49,317 49,262 49,287 48,976 Basic earnings per share attributable to common stockholders $ 0.91 $ 1.06 $ 2.84 $ 3.04 Diluted earnings per share attributable to common stockholders $ 0.90 $ 1.05 $ 2.81 $ 3.00 Anti-dilutive common stock equivalents excluded from the calculation 2 — 2 — |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes included U.S. federal, state, local and foreign taxes. A reconciliation of the Company’s statutory federal income tax rate and the effective income tax rate is summarized in the following table: Three Months Ended Nine Months Ended 2022 2021 2022 2021 U.S. statutory tax rate 21.0 % 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal benefit 3.1 3.9 3.1 3.9 Non-deductible executive compensation 1.6 1.8 2.6 2.1 Excess tax benefits related to the vesting and delivery of restricted stock units — — (3.3) (3.0) Unrecognized tax benefit adjustments 0.1 0.9 (3.6) (2.6) Other 0.1 (1.6) 0.2 (0.7) Effective income tax rate 25.9 % 26.0 % 20.0 % 20.7 % |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company is an investment adviser to, and has administration agreements with, Company-sponsored funds for which certain employees are officers and/or directors. The following table summarizes the amount of revenue the Company earned from these affiliated funds: Three Months Ended Nine Months Ended (in thousands) 2022 2021 2022 2021 Investment advisory and administration fees (1) $ 96,187 $ 103,426 $ 301,227 $ 283,480 Distribution and service fees 8,557 9,900 27,431 27,371 Total $ 104,744 $ 113,326 $ 328,658 $ 310,851 _________________________ (1) Investment advisory and administration fees are reflected net of fund reimbursements of $4.5 million and $4.2 million for the three months ended September 30, 2022 and 2021, respectively, and $13.1 million and $11.5 million for the nine months ended September 30, 2022 and 2021, respectively. Included in accounts receivable at September 30, 2022 and December 31, 2021 are receivables due from Company-sponsored funds of $34.5 million and $40.8 million, respectively. Included in accounts payable at September 30, 2022 and December 31, 2021 are payables due to Company-sponsored funds of $0.8 million and $1.1 million, respectively. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for corporate offices and certain information technology equipment. During August 2022, the Company entered into a lease agreement for its new corporate headquarters in New York City. The lease, which has a 16-year term, carries a commitment of $210.1 million. Lease payments of $13.0 million per year will begin in 2024, then increase to $14.0 million per year in 2029 and $15.0 million per year in 2034. The Company will recognize a right-of-use asset and lease liability when the lease commences. The lease for the Company's current corporate headquarters, also in New York City, is scheduled to expire during the first quarter of 2024. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, the Company is involved in legal matters relating to claims arising in the ordinary course of business. There are currently no such matters pending that the Company believes could have a material adverse effect on its condensed consolidated results of operations, cash flows or financial position. The Company has committed to invest up to $50.0 million in REOF. As of September 30, 2022, the Company had funded $17.4 million of this commitment. The timing for funding the remaining portion of the Company's commitment is determined by the fund. |
Concentration of Credit Risk
Concentration of Credit Risk | 9 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk The Company's cash and cash equivalents are principally on deposit with major financial institutions. The Company is subject to credit risk should these financial institutions be unable to fulfill their obligations. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the condensed consolidated financial statements were issued. Other than the items described below, the Company determined that there were no additional subsequent events that require disclosure and/or adjustment. On November 3, 2022, the Company declared a quarterly dividend on its common stock in the amount of $0.55 per share. This dividend will be payable on November 29, 2022 to stockholders of record at the close of business on November 14, 2022. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Accounting Estimates | Accounting Estimates —The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Management believes the estimates used in preparing the condensed consolidated financial statements are reasonable and prudent. Actual results could differ from those estimates. |
Consolidation of investment vehicles | Consolidation of Investment Vehicles —The Company's financial interests in investment vehicles, including the management fees that are received, are evaluated at inception and thereafter, if there is a reconsideration event, in order to determine whether to apply the Variable Interest Entity (VIE) model or the Voting Interest Entity (VOE) model. A VIE is an entity in which either the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support or the group of holders of the equity investment at risk lack certain characteristics of a controlling financial interest. The primary beneficiary is the entity that has the power to direct the activities of the VIE that most significantly affect its performance, and the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. Subscriptions and redemptions or amendments to the governing documents of the respective entities could affect an entity's status as a VIE or the determination of the primary beneficiary. Limited partnerships and similar entities are determined to be a VIE when the Company is the general partner and the limited partners do not hold substantive kick-out or participation rights. The Company assesses whether it is the primary beneficiary of any VIEs identified by evaluating its economic interests in the entity held either directly by the Company and its affiliates or indirectly through employees. VIEs for which the Company is deemed to be the primary beneficiary are consolidated. Investments that are determined to be VOEs are consolidated when the Company’s ownership interest is greater than 50% of the outstanding voting interests of the vehicle. |
Cash and Cash Equivalents | Cash and Cash Equivalents —Cash and cash equivalents are on deposit with several highly rated financial institutions and include short-term, highly liquid investments, which are readily convertible into cash and have original maturities of three months or less. |
Due from/to Brokers | Due from/to Brokers —The Company, including the consolidated investment vehicles, may transact with brokers for certain investment activities. The clearing and custody operations for these investment activities are performed pursuant to contractual agreements. The due from/to brokers balances represent cash and/or cash collateral balances at brokers/custodians and/or receivables and payables for unsettled securities transactions with brokers/custodians. |
Investments | Investments —Management of the Company determines the appropriate classification of its investments at the time of purchase and re-evaluates such determination no less than on a quarterly basis. The Company's investments are categorized as follows: • Equity investments at fair value are comprised of corporate investments and investments held within the consolidated investment vehicles, which generally represent common stocks, limited partnership interests, master limited partnership interests, preferred securities and other seed investments. • Trading investments are comprised of corporate investments and investments held within the consolidated investment vehicles, which generally represent U.S. Treasury securities and investment-grade corporate debt securities. • Equity method investments, which generally represent seed investments in investment vehicles for which the Company is able to exercise significant influence but not control over the investment. When using the equity method, the Company recognizes its respective share of net income or loss for the period which is recorded in gain (loss) from investments—net in the Company's condensed consolidated statements of operations. Realized and unrealized gains and losses on equity investments at fair value, trading investments and equity method investments are recorded in gain (loss) from investments—net in the Company's condensed consolidated statements of operations. From time to time, the Company, including the consolidated investment vehicles, may enter into derivative contracts, including options, futures and swaps contracts, to gain exposure to the underlying commodities markets or to economically hedge market risk of the underlying portfolios. Gains and losses on derivative contracts are recorded in gain (loss) from investments—net in the Company's condensed consolidated statements of operations. The fair values of these instruments are recorded in other assets or other liabilities and accrued expenses on the Company's condensed consolidated statements of financial condition. Additionally, from time to time, the Company, including the consolidated investment vehicles, may enter into forward foreign exchange contracts to economically hedge currency exposure. These instruments are measured at fair value based on the prevailing forward exchange rate with gains and losses recorded in foreign currency gain (loss)—net in the Company’s condensed consolidated statements of operations. The fair values of these contracts are recorded in other assets or other liabilities and accrued expenses on the Company’s condensed consolidated statements of financial condition. |
Leases | Leases —The Company determines if an arrangement is a lease at inception. The Company has operating leases for corporate offices and certain information technology equipment which are included in operating lease right-of-use (ROU) assets and operating lease liabilities on the Company’s condensed consolidated statements of financial condition. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent obligations to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the net present value of lease payments over the life of the lease. The majority of the Company’s lease agreements do not provide an implicit rate. As a result, the Company used its estimated incremental borrowing rate based on the information available as of lease commencement dates in determining the present value of lease payments. The operating lease ROU assets reflect any upfront lease payments made as well as lease incentives received. The lease terms may include options to extend or terminate the lease and these are factored into the determination of the ROU asset and lease liability at lease inception when and if it is reasonably certain that the Company will exercise that option. Lease expense for fixed lease payments is recognized on a straight-line basis over the lease term. The Company has certain lease agreements with non-lease components such as maintenance and executory costs, which are accounted for separately and not included in ROU assets. ROU assets are tested for impairment whenever changes in facts or circumstances indicate that the carrying amount of an asset may not be recoverable. Modification of a lease term would result in remeasurement of the lease liability and a corresponding adjustment to the ROU assets. |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests —Redeemable noncontrolling interests represent third-party interests in the consolidated investment vehicles. These interests are redeemable at the option of the investors and therefore are not treated as permanent equity. Redeemable noncontrolling interests are recorded at fair value which approximates the redemption value at each reporting period. |
Investment Advisory and Administration Fees | Investment Advisory and Administration Fees —The Company earns revenue by providing asset management services to institutional accounts, open-end and closed-end funds as well as model-based portfolios. Investment advisory fees are earned pursuant to the terms of investment management agreements and are generally based on a contractual fee rate applied to the average assets under management. The Company also earns administration fees from certain open-end and closed-end funds pursuant to the terms of underlying administration contracts. Administration fees are based on the average daily assets under management of such funds. Investment advisory and administration fee revenue is recognized when earned and is recorded net of any fund reimbursements. The investment advisory and administration contracts each include a single performance obligation as the services provided are not separately identifiable and are accounted for as a series satisfied over time using a time-based method (days elapsed). Additionally, investment advisory and administration fees represent variable consideration, as fees are based on average assets under management which fluctuate daily. In certain instances, the Company may earn performance fees when specified performance hurdles are met during the performance period. Performance fees are forms of variable consideration and are not recognized until it becomes probable that there will not be a significant reversal of the cumulative revenue recognized . |
Distribution and Service Fee Revenue | Distribution and Service Fee Revenue —Distribution and service fee revenue is based on the average daily net assets of certain share classes of open-end funds distributed by CSS. Distribution and service fee revenue is earned daily and is recorded gross of any third-party distribution and service fee expense for applicable share classes. Distribution fee agreements include a single performance obligation that is satisfied at a point in time when an investor purchases shares in an open-end fund. For all periods presented, a portion of the distribution fee revenue recognized in the period may relate to performance obligations satisfied (or partially satisfied) in prior periods. Service fee agreements include a single performance obligation as the services provided are not separately identifiable and are accounted for as a series satisfied over time using a time-based method (days elapsed). Additionally, distribution and service fees represent variable consideration, as fees are based on average assets under management which fluctuate daily. |
Distribution and Service Fee Expense | Distribution and Service Fee Expense —Distribution and service fee expense includes distribution fees, shareholder servicing fees and intermediary assistance payments. Distribution fees represent payments made to qualified intermediaries for assistance in connection with the distribution of certain open-end funds' shares and for other expenses such as advertising, printing and distribution of prospectuses to investors. Such amounts may also be used to pay financial intermediaries for services as specified in the terms of written agreements complying with Rule 12b-1 of the Investment Company Act of 1940. Distribution fees are based on average daily net assets under management of certain share classes of certain of the funds. Shareholder servicing fees represent payments made to qualified intermediaries for shareholder account service and maintenance. These services are provided pursuant to written agreements with such qualified institutions. Shareholder servicing fees are generally based on average daily net assets under management. Intermediary assistance payments represent payments to qualified intermediaries for activities related to distribution, shareholder servicing as well as marketing and support of certain open-end funds and are incremental to those described above. Intermediary assistance payments are generally based on average daily net assets under management. |
Stock-based Compensation | Stock-based Compensation —The Company recognizes compensation expense for the grant-date fair value of restricted stock unit awards to certain employees. This expense is recognized over the period during which employees are required to |
Income Taxes | Income Taxes —The Company records the current and deferred tax consequences of all transactions that have been recognized in the condensed consolidated financial statements in accordance with the provisions of the enacted tax laws. Deferred tax assets are recognized for temporary differences that will result in deductible amounts in future years at tax rates that are expected to apply in those years. Deferred tax liabilities are recognized for temporary differences that will result in taxable income in future years at tax rates that are expected to apply in those years. The Company records a valuation allowance, when necessary, to reduce deferred tax assets to an amount that more likely than not will be realized. The effective tax rate for interim periods is based on the Company's best estimate of the effective tax rate expected to be applied to the full fiscal year adjusted for discrete tax items during the period. The calculation of tax liabilities involves uncertainties in the application of complex tax laws and regulations across the Company's global operations. A tax benefit from an uncertain tax position is recognized when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, on the basis of the technical merits. The Company records potential interest and penalties related to uncertain tax positions in the provision for income taxes in the condensed consolidated statements of operations. |
Currency Translation and Transactions | Currency Translation and Transactions —Assets and liabilities of subsidiaries having non-U.S. dollar functional currencies are translated at exchange rates at the applicable condensed consolidated statement of financial condition date. Revenue and expenses of such subsidiaries are translated at average exchange rates during the period. The gains or losses resulting from translating non-U.S. dollar functional currency into U.S. dollars are included in the Company's condensed consolidated statements of comprehensive income. Gains or losses resulting from transactions denominated in currencies other than the U.S. dollar within certain foreign subsidiaries and gains and losses arising on revaluation of U.S. dollar-denominated assets and liabilities held by certain foreign subsidiaries are included in foreign currency gain (loss)—net in the Company’s condensed consolidated statements of operations. |
Comprehensive Income | Comprehensive Income —The Company reports all changes in comprehensive income in the condensed consolidated statements of comprehensive income. Comprehensive income generally includes net income or loss attributable to common stockholders and amounts attributable to foreign currency translation gain (loss). |
Recently Issued Accounting Pronouncements | Basis of Presentation and Significant Accounting Policies The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The condensed consolidated financial statements set forth herein include the accounts of CNS and its direct and indirect subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements of the Company included herein are unaudited and have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the interim results have been made. The Company's condensed consolidated financial statements and the related notes should be read together with the consolidated financial statements and the related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. Accounting Estimates —The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Management believes the estimates used in preparing the condensed consolidated financial statements are reasonable and prudent. Actual results could differ from those estimates. Consolidation of Investment Vehicles —The Company's financial interests in investment vehicles, including the management fees that are received, are evaluated at inception and thereafter, if there is a reconsideration event, in order to determine whether to apply the Variable Interest Entity (VIE) model or the Voting Interest Entity (VOE) model. A VIE is an entity in which either the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support or the group of holders of the equity investment at risk lack certain characteristics of a controlling financial interest. The primary beneficiary is the entity that has the power to direct the activities of the VIE that most significantly affect its performance, and the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. Subscriptions and redemptions or amendments to the governing documents of the respective entities could affect an entity's status as a VIE or the determination of the primary beneficiary. Limited partnerships and similar entities are determined to be a VIE when the Company is the general partner and the limited partners do not hold substantive kick-out or participation rights. The Company assesses whether it is the primary beneficiary of any VIEs identified by evaluating its economic interests in the entity held either directly by the Company and its affiliates or indirectly through employees. VIEs for which the Company is deemed to be the primary beneficiary are consolidated. Investments that are determined to be VOEs are consolidated when the Company’s ownership interest is greater than 50% of the outstanding voting interests of the vehicle. The Company records noncontrolling interests in consolidated investment vehicles for which the Company’s ownership is less than 100%. Cash and Cash Equivalents —Cash and cash equivalents are on deposit with several highly rated financial institutions and include short-term, highly liquid investments, which are readily convertible into cash and have original maturities of three months or less. Due from/to Brokers —The Company, including the consolidated investment vehicles, may transact with brokers for certain investment activities. The clearing and custody operations for these investment activities are performed pursuant to contractual agreements. The due from/to brokers balances represent cash and/or cash collateral balances at brokers/custodians and/or receivables and payables for unsettled securities transactions with brokers/custodians. Investments —Management of the Company determines the appropriate classification of its investments at the time of purchase and re-evaluates such determination no less than on a quarterly basis. The Company's investments are categorized as follows: • Equity investments at fair value are comprised of corporate investments and investments held within the consolidated investment vehicles, which generally represent common stocks, limited partnership interests, master limited partnership interests, preferred securities and other seed investments. • Trading investments are comprised of corporate investments and investments held within the consolidated investment vehicles, which generally represent U.S. Treasury securities and investment-grade corporate debt securities. • Equity method investments, which generally represent seed investments in investment vehicles for which the Company is able to exercise significant influence but not control over the investment. When using the equity method, the Company recognizes its respective share of net income or loss for the period which is recorded in gain (loss) from investments—net in the Company's condensed consolidated statements of operations. Realized and unrealized gains and losses on equity investments at fair value, trading investments and equity method investments are recorded in gain (loss) from investments—net in the Company's condensed consolidated statements of operations. From time to time, the Company, including the consolidated investment vehicles, may enter into derivative contracts, including options, futures and swaps contracts, to gain exposure to the underlying commodities markets or to economically hedge market risk of the underlying portfolios. Gains and losses on derivative contracts are recorded in gain (loss) from investments—net in the Company's condensed consolidated statements of operations. The fair values of these instruments are recorded in other assets or other liabilities and accrued expenses on the Company's condensed consolidated statements of financial condition. Additionally, from time to time, the Company, including the consolidated investment vehicles, may enter into forward foreign exchange contracts to economically hedge currency exposure. These instruments are measured at fair value based on the prevailing forward exchange rate with gains and losses recorded in foreign currency gain (loss)—net in the Company’s condensed consolidated statements of operations. The fair values of these contracts are recorded in other assets or other liabilities and accrued expenses on the Company’s condensed consolidated statements of financial condition. Leases —The Company determines if an arrangement is a lease at inception. The Company has operating leases for corporate offices and certain information technology equipment which are included in operating lease right-of-use (ROU) assets and operating lease liabilities on the Company’s condensed consolidated statements of financial condition. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent obligations to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the net present value of lease payments over the life of the lease. The majority of the Company’s lease agreements do not provide an implicit rate. As a result, the Company used its estimated incremental borrowing rate based on the information available as of lease commencement dates in determining the present value of lease payments. The operating lease ROU assets reflect any upfront lease payments made as well as lease incentives received. The lease terms may include options to extend or terminate the lease and these are factored into the determination of the ROU asset and lease liability at lease inception when and if it is reasonably certain that the Company will exercise that option. Lease expense for fixed lease payments is recognized on a straight-line basis over the lease term. The Company has certain lease agreements with non-lease components such as maintenance and executory costs, which are accounted for separately and not included in ROU assets. ROU assets are tested for impairment whenever changes in facts or circumstances indicate that the carrying amount of an asset may not be recoverable. Modification of a lease term would result in remeasurement of the lease liability and a corresponding adjustment to the ROU assets. Redeemable Noncontrolling Interests —Redeemable noncontrolling interests represent third-party interests in the consolidated investment vehicles. These interests are redeemable at the option of the investors and therefore are not treated as permanent equity. Redeemable noncontrolling interests are recorded at fair value which approximates the redemption value at each reporting period. Investment Advisory and Administration Fees —The Company earns revenue by providing asset management services to institutional accounts, open-end and closed-end funds as well as model-based portfolios. Investment advisory fees are earned pursuant to the terms of investment management agreements and are generally based on a contractual fee rate applied to the average assets under management. The Company also earns administration fees from certain open-end and closed-end funds pursuant to the terms of underlying administration contracts. Administration fees are based on the average daily assets under management of such funds. Investment advisory and administration fee revenue is recognized when earned and is recorded net of any fund reimbursements. The investment advisory and administration contracts each include a single performance obligation as the services provided are not separately identifiable and are accounted for as a series satisfied over time using a time-based method (days elapsed). Additionally, investment advisory and administration fees represent variable consideration, as fees are based on average assets under management which fluctuate daily. In certain instances, the Company may earn performance fees when specified performance hurdles are met during the performance period. Performance fees are forms of variable consideration and are not recognized until it becomes probable that there will not be a significant reversal of the cumulative revenue recognized . Distribution and Service Fee Revenue —Distribution and service fee revenue is based on the average daily net assets of certain share classes of open-end funds distributed by CSS. Distribution and service fee revenue is earned daily and is recorded gross of any third-party distribution and service fee expense for applicable share classes. Distribution fee agreements include a single performance obligation that is satisfied at a point in time when an investor purchases shares in an open-end fund. For all periods presented, a portion of the distribution fee revenue recognized in the period may relate to performance obligations satisfied (or partially satisfied) in prior periods. Service fee agreements include a single performance obligation as the services provided are not separately identifiable and are accounted for as a series satisfied over time using a time-based method (days elapsed). Additionally, distribution and service fees represent variable consideration, as fees are based on average assets under management which fluctuate daily. Distribution and Service Fee Expense —Distribution and service fee expense includes distribution fees, shareholder servicing fees and intermediary assistance payments. Distribution fees represent payments made to qualified intermediaries for assistance in connection with the distribution of certain open-end funds' shares and for other expenses such as advertising, printing and distribution of prospectuses to investors. Such amounts may also be used to pay financial intermediaries for services as specified in the terms of written agreements complying with Rule 12b-1 of the Investment Company Act of 1940. Distribution fees are based on average daily net assets under management of certain share classes of certain of the funds. Shareholder servicing fees represent payments made to qualified intermediaries for shareholder account service and maintenance. These services are provided pursuant to written agreements with such qualified institutions. Shareholder servicing fees are generally based on average daily net assets under management. Intermediary assistance payments represent payments to qualified intermediaries for activities related to distribution, shareholder servicing as well as marketing and support of certain open-end funds and are incremental to those described above. Intermediary assistance payments are generally based on average daily net assets under management. Stock-based Compensation —The Company recognizes compensation expense for the grant-date fair value of restricted stock unit awards to certain employees. This expense is recognized over the period during which employees are required to provide service. Forfeitures are recorded as incurred. Any change to the key terms of an employee’s award subsequent to the grant date is evaluated and, if necessary, accounted for as a modification. If the modification results in the remeasurement of the fair value of the award, the remeasured compensation cost is recognized over the remaining service period. Income Taxes —The Company records the current and deferred tax consequences of all transactions that have been recognized in the condensed consolidated financial statements in accordance with the provisions of the enacted tax laws. Deferred tax assets are recognized for temporary differences that will result in deductible amounts in future years at tax rates that are expected to apply in those years. Deferred tax liabilities are recognized for temporary differences that will result in taxable income in future years at tax rates that are expected to apply in those years. The Company records a valuation allowance, when necessary, to reduce deferred tax assets to an amount that more likely than not will be realized. The effective tax rate for interim periods is based on the Company's best estimate of the effective tax rate expected to be applied to the full fiscal year adjusted for discrete tax items during the period. The calculation of tax liabilities involves uncertainties in the application of complex tax laws and regulations across the Company's global operations. A tax benefit from an uncertain tax position is recognized when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, on the basis of the technical merits. The Company records potential interest and penalties related to uncertain tax positions in the provision for income taxes in the condensed consolidated statements of operations. Currency Translation and Transactions —Assets and liabilities of subsidiaries having non-U.S. dollar functional currencies are translated at exchange rates at the applicable condensed consolidated statement of financial condition date. Revenue and expenses of such subsidiaries are translated at average exchange rates during the period. The gains or losses resulting from translating non-U.S. dollar functional currency into U.S. dollars are included in the Company's condensed consolidated statements of comprehensive income. Gains or losses resulting from transactions denominated in currencies other than the U.S. dollar within certain foreign subsidiaries and gains and losses arising on revaluation of U.S. dollar-denominated assets and liabilities held by certain foreign subsidiaries are included in foreign currency gain (loss)—net in the Company’s condensed consolidated statements of operations. The cumulative translation adjustment was $(14.9) million and $(5.9) million at September 30, 2022 and December 31, 2021, respectively, and was reported within accumulated other comprehensive income (loss) on the condensed consolidated statements of financial condition. Comprehensive Income —The Company reports all changes in comprehensive income in the condensed consolidated statements of comprehensive income. Comprehensive income generally includes net income or loss attributable to common stockholders and amounts attributable to foreign currency translation gain (loss). Recently Issued Accounting Pronouncements —In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The standard clarifies that contractual sale restrictions are not considered in measuring the fair value of equity securities, which would be a change in practice for certain entities. The ASU also indicates that a contractual sale restriction is not a separate unit of account, and requires new disclosures for all entities with equity securities subject to a contractual sale restriction. This new guidance will be effective on January 1, 2024. The Company does not expect that the adoption of this new standard will have a material effect on the Company's condensed consolidated financial statements and related disclosures. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables summarize revenue recognized from contracts with customers by client domicile and by investment vehicle: Three Months Ended Nine Months Ended (in thousands) 2022 2021 2022 2021 Client domicile: North America $ 122,944 $ 134,243 $ 387,572 $ 368,685 Japan 8,824 9,960 27,610 28,021 Europe, Middle East and Africa 4,986 6,593 16,344 17,869 Asia Pacific excluding Japan 3,197 3,391 10,045 9,628 Total $ 139,951 $ 154,187 $ 441,571 $ 424,203 Three Months Ended Nine Months Ended (in thousands) 2022 2021 2022 2021 Investment vehicle: Open-end funds $ 80,500 $ 88,026 $ 256,246 $ 237,082 Institutional accounts 32,500 38,039 103,612 106,407 Closed-end funds 26,951 28,122 81,713 80,714 Total $ 139,951 $ 154,187 $ 441,571 $ 424,203 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments [Abstract] | |
Summary Investment Holdings | The following table summarizes the Company's investments: (in thousands) September 30, 2022 December 31, 2021 Equity investments at fair value $ 143,963 $ 130,930 Trading 57,729 23,711 Equity method 20 13 Total investments $ 201,712 $ 154,654 |
Gain (Loss) on Investments | The following table summarizes gain (loss) from investments —net : Three Months Ended Nine Months Ended (in thousands) 2022 2021 2022 2021 Net realized gains (losses) during the period $ (653) $ 2,274 $ 10,192 $ 6,730 Net unrealized gains (losses) during the period on investments still held at the end of the period (5,267) (2,692) (41,118) 5,189 Gain (loss) from investments—net (1) $ (5,920) $ (418) $ (30,926) $ 11,919 ________________________ (1) Included gain (loss) on derivative contracts, which are utilized to hedge a portion of the market risk of the Company's seed investments. |
Schedule of Variable Interest Entities | The following tables summarize the condensed consolidated statements of financial condition attributable to the Company's consolidated VIEs: (in thousands) September 30, 2022 GLI SICAV SICAV GRE GRP-CIP REOF Total Assets (1) Investments $ 31,891 $ 69,631 $ 150 $ 20,636 $ 122,308 Due from brokers 523 717 32 — 1,272 Other assets 95 260 — 51 406 Total assets 32,509 70,608 182 20,687 123,986 Liabilities (1) Due to brokers $ 835 $ 480 $ — $ — $ 1,315 Other liabilities and accrued expenses 58 170 5 515 748 Total liabilities 893 650 5 515 2,063 Net assets $ 31,616 $ 69,958 $ 177 $ 20,172 $ 121,923 Attributable to the Company $ 17,576 $ 10,832 $ 177 $ 15,808 $ 44,393 Attributable to redeemable non-controlling interests 14,040 59,126 — 4,364 77,530 Net assets $ 31,616 $ 69,958 $ 177 $ 20,172 $ 121,923 _________________________ (1) The assets may only be used to settle obligations of each VIE and the liabilities are the sole obligation of each VIE, for which creditors do not have recourse to the general credit of the Company. December 31, 2021 (in thousands) GLI SICAV SICAV GRE SICAV RAP GRP-CIP REOF Total Assets (1) Investments $ 8,266 $ 57,354 $ 59,493 $ 150 $ 2,649 $ 127,912 Due from brokers — 1,107 86 147 — 1,340 Other assets 42 214 740 — 593 1,589 Total assets 8,308 58,675 60,319 297 3,242 130,841 Liabilities (1) Due to brokers $ — $ 347 $ 579 $ — $ — $ 926 Other liabilities and accrued expenses 35 126 108 5 415 689 Total liabilities 35 473 687 5 415 1,615 Net assets $ 8,273 $ 58,202 $ 59,632 $ 292 $ 2,827 $ 129,226 Attributable to the Company $ 8,261 $ 15,355 $ 13,348 $ 292 $ 2,827 $ 40,083 Attributable to redeemable non-controlling interests 12 42,847 46,284 — — 89,143 Net assets $ 8,273 $ 58,202 $ 59,632 $ 292 $ 2,827 $ 129,226 _________________________ (1) The assets may only be used to settle obligations of each VIE and the liabilities are the sole obligation of each VIE, for which creditors do not have recourse to the general credit of the Company. |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The following tables present fair value measurements: September 30, 2022 (in thousands) Level 1 Level 2 Level 3 Investments Measured at NAV (1) Total Cash equivalents $ 91,901 $ — $ — $ — $ 91,901 Equity investments at fair value: Common stocks $ 127,672 $ 768 $ — $ — $ 128,440 Company-sponsored funds 191 — — — 191 Limited partnership interests — — 12,610 1,357 13,967 Master limited partnership interests 410 — — — 410 Preferred securities 814 11 — — 825 Other — — — 130 130 Total $ 129,087 $ 779 $ 12,610 $ 1,487 $ 143,963 Trading investments: Fixed income $ — $ 57,729 $ — $ — $ 57,729 Equity method investments $ — $ — $ — $ 20 $ 20 Total investments $ 129,087 $ 58,508 $ 12,610 $ 1,507 $ 201,712 Derivatives - assets: Total return swaps - commodities $ — $ 75 $ — $ — $ 75 Total return swaps - equities — 3,067 — — 3,067 Forward contracts - foreign exchange — 1,439 — — 1,439 Total $ — $ 4,581 $ — $ — $ 4,581 Derivatives - liabilities: Total return swaps - commodities $ — $ 116 $ — $ — $ 116 Forward contracts - foreign exchange — 4 — — 4 Total $ — $ 120 $ — $ — $ 120 ________________________ (1) Comprised of certain investments measured at fair value using net asset value (NAV) as a practical expedient. December 31, 2021 (in thousands) Level 1 Level 2 Level 3 Investments Measured at NAV (1) Total Cash equivalents $ 104,591 $ — $ — $ — $ 104,591 Equity investments at fair value: Common stocks $ 126,301 $ 116 $ — $ — $ 126,417 Limited partnership interests — — — 1,816 1,816 Master limited partnership interests 986 — — — 986 Preferred securities 1,465 — — — 1,465 Other 103 — — 143 246 Total $ 128,855 $ 116 $ — $ 1,959 $ 130,930 Trading investments: Fixed income $ — $ 23,711 $ — $ — $ 23,711 Equity method investments $ — $ — $ — $ 13 $ 13 Total investments $ 128,855 $ 23,827 $ — $ 1,972 $ 154,654 Derivatives - assets: Total return swaps - commodities (2) $ — $ 481 $ — $ — $ 481 Forward contracts - foreign exchange — 209 — — 209 Total $ — $ 690 $ — $ — $ 690 Derivatives - liabilities: Total return swaps - commodities $ — $ 17 $ — $ — $ 17 Total return swaps - equities — 867 — — 867 Forward contracts - foreign exchange — 3 — — 3 Total $ — $ 887 $ — $ — $ 887 ________________________ (1) Comprised of certain investments measured at fair value using NAV as a practical expedient. (2) Included total return swaps - commodities held by consolidated investment vehicles. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the changes in Level 3 investments measured at fair value on a recurring basis: Three Months Ended Nine Months Ended (in thousands) 2022 2021 2022 2021 Balance at beginning of period $ 18,592 $ — $ — $ — Purchases/contributions — — 19,380 — Sales/distributions (5,874) — (5,874) — Unrealized gains (losses) (108) — (896) — Balance at end of period $ 12,610 $ — $ 12,610 $ — |
Fair Value Measurement Inputs and Valuation Techniques | The following table summarizes the valuation techniques and significant unobservable inputs approved by the Valuation Committee for Level 3 investments measured at fair value on a recurring basis: Fair Value Valuation Technique Unobservable Inputs Value Limited partnership interests $12,610 Discounted cash flow Discount rate 8.25% 7.25% |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following tables summarize the notional amount and fair value of the outstanding derivative financial instruments, none of which were designated in a formal hedging relationship: As of September 30, 2022 Notional Amount Fair Value (1) (in thousands) Long Short Assets Liabilities Corporate derivatives: Total return swaps - commodities $ 2,247 $ 1,939 $ 75 $ 116 Total return swaps - equities — 28,327 3,067 — Forward contracts - foreign exchange — 16,599 1,439 4 Total corporate derivatives $ 2,247 $ 46,865 $ 4,581 $ 120 As of December 31, 2021 Notional Amount Fair Value (1) (in thousands) Long Short Assets Liabilities Corporate derivatives: Total return swaps - commodities $ 2,549 $ 3,810 $ 94 $ 17 Total return swaps - equities — 22,899 — 867 Forward contracts - foreign exchange — 11,969 209 3 Total corporate derivatives $ 2,549 $ 38,678 $ 303 $ 887 Derivatives held by consolidated investment vehicles: Total return swaps - commodities 10,931 — 387 — Total $ 13,480 $ 38,678 $ 690 $ 887 ________________________ (1) The fair value of derivative financial instruments is recorded in other assets and other liabilities and accrued expenses on the Company's condensed consolidated statements of financial condition. |
Gains (losses) on Derivatives | The following table summarizes net gains (losses) from derivative financial instruments: Three Months Ended Nine Months Ended (in thousands) 2022 2021 2022 2021 Corporate derivatives: Futures - commodities $ — $ 813 $ — $ 2,981 Total return swaps - commodities (27) (748) (242) (2,741) Total return swaps - equities 3,044 100 6,447 (2,408) Forward contracts - foreign exchange 839 156 1,229 633 Total corporate derivatives $ 3,856 $ 321 $ 7,434 $ (1,535) Derivatives held by consolidated investment vehicles: Total return swaps - commodities 828 619 3,988 1,691 Total (1) $ 4,684 $ 940 $ 11,422 $ 156 ________________________ (1) Gains and losses on futures and total return swap contracts are included in gain (loss) from investments—net in the Company's condensed consolidated statements of operations. Gains and losses on forward foreign exchange contracts are included in foreign currency gain (loss)—net in the Company's condensed consolidated statements of operations. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles income and share data used in the basic and diluted earnings per share computations: Three Months Ended Nine Months Ended (in thousands, except per share data) 2022 2021 2022 2021 Net income $ 39,614 $ 51,387 $ 112,604 $ 156,223 Net (income) loss attributable to redeemable noncontrolling interests 4,956 96 25,940 (9,309) Net income attributable to common stockholders $ 44,570 $ 51,483 $ 138,544 $ 146,914 Basic weighted average shares outstanding 48,815 48,386 48,765 48,273 Dilutive potential shares from restricted stock units 502 876 522 703 Diluted weighted average shares outstanding 49,317 49,262 49,287 48,976 Basic earnings per share attributable to common stockholders $ 0.91 $ 1.06 $ 2.84 $ 3.04 Diluted earnings per share attributable to common stockholders $ 0.90 $ 1.05 $ 2.81 $ 3.00 Anti-dilutive common stock equivalents excluded from the calculation 2 — 2 — |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes included U.S. federal, state, local and foreign taxes. A reconciliation of the Company’s statutory federal income tax rate and the effective income tax rate is summarized in the following table: Three Months Ended Nine Months Ended 2022 2021 2022 2021 U.S. statutory tax rate 21.0 % 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal benefit 3.1 3.9 3.1 3.9 Non-deductible executive compensation 1.6 1.8 2.6 2.1 Excess tax benefits related to the vesting and delivery of restricted stock units — — (3.3) (3.0) Unrecognized tax benefit adjustments 0.1 0.9 (3.6) (2.6) Other 0.1 (1.6) 0.2 (0.7) Effective income tax rate 25.9 % 26.0 % 20.0 % 20.7 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table summarizes the amount of revenue the Company earned from these affiliated funds: Three Months Ended Nine Months Ended (in thousands) 2022 2021 2022 2021 Investment advisory and administration fees (1) $ 96,187 $ 103,426 $ 301,227 $ 283,480 Distribution and service fees 8,557 9,900 27,431 27,371 Total $ 104,744 $ 113,326 $ 328,658 $ 310,851 _________________________ (1) Investment advisory and administration fees are reflected net of fund reimbursements of $4.5 million and $4.2 million for the three months ended September 30, 2022 and 2021, respectively, and $13.1 million and $11.5 million for the nine months ended September 30, 2022 and 2021, respectively. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (14,900) | $ (5,900) |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 139,951 | $ 154,187 | $ 441,571 | $ 424,203 |
Open-end funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 80,500 | 88,026 | 256,246 | 237,082 |
Institutional accounts | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 32,500 | 38,039 | 103,612 | 106,407 |
Closed-end funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 26,951 | 28,122 | 81,713 | 80,714 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 122,944 | 134,243 | 387,572 | 368,685 |
Japan | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 8,824 | 9,960 | 27,610 | 28,021 |
Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,986 | 6,593 | 16,344 | 17,869 |
Asia Pacific excluding Japan | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 3,197 | $ 3,391 | $ 10,045 | $ 9,628 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | ||
Summary of Investments | ||||||
Equity investments at fair value | $ 143,963 | $ 143,963 | $ 143,963 | $ 143,963 | $ 130,930 | |
Trading | 57,729 | 57,729 | 57,729 | 57,729 | 23,711 | |
Equity method | 20 | 20 | 20 | 20 | 13 | |
Total investments | [1] | 201,712 | 201,712 | $ 154,654 | ||
Gain (Loss) on Investments [Abstract] | ||||||
Net realized gains (losses) during the period | (653) | 2,274 | 10,192 | 6,730 | ||
Net unrealized gains (losses) during the period on investments still held at the end of the period | (5,267) | (2,692) | (41,118) | 5,189 | ||
Gain (loss) from investments—net | $ (5,920) | $ (418) | $ (30,926) | $ 11,919 | ||
[1]Asset and liability amounts in parentheses represent the aggregated balances at September 30, 2022 and December 31, 2021 attributable to variable interest entities consolidated by the Company. Refer to Note 4, Investments for further discussion. |
Investments Variable Interest E
Investments Variable Interest Entity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |||
Investments | [1] | $ 201,712 | $ 154,654 |
Other assets | [1] | 20,012 | 15,360 |
Total assets | 506,332 | 492,687 | |
Due to brokers | [1] | 4,460 | 927 |
Other liabilities and accrued expenses | [1] | 13,497 | 10,948 |
Total liabilities | 113,172 | 148,361 | |
GLI SICAV | |||
Variable Interest Entity [Line Items] | |||
Investments | 31,891 | 8,266 | |
Due from brokers ($145 and $1,743) | 523 | 0 | |
Other assets | 95 | 42 | |
Total assets | 32,509 | 8,308 | |
Due to brokers | 835 | 0 | |
Other liabilities and accrued expenses | 58 | 35 | |
Total liabilities | 893 | 35 | |
Net assets | 31,616 | 8,273 | |
Attributable to the Company | 17,576 | 8,261 | |
Attributable to redeemable non-controlling interests | 14,040 | 12 | |
SICAV GRE | |||
Variable Interest Entity [Line Items] | |||
Investments | 69,631 | 57,354 | |
Due from brokers ($145 and $1,743) | 717 | 1,107 | |
Other assets | 260 | 214 | |
Total assets | 70,608 | 58,675 | |
Due to brokers | 480 | 347 | |
Other liabilities and accrued expenses | 170 | 126 | |
Total liabilities | 650 | 473 | |
Net assets | 69,958 | 58,202 | |
Attributable to the Company | 10,832 | 15,355 | |
Attributable to redeemable non-controlling interests | 59,126 | 42,847 | |
SICAV RAP | |||
Variable Interest Entity [Line Items] | |||
Investments | 59,493 | ||
Due from brokers ($145 and $1,743) | 86 | ||
Other assets | 740 | ||
Total assets | 60,319 | ||
Due to brokers | 579 | ||
Other liabilities and accrued expenses | 108 | ||
Total liabilities | 687 | ||
Net assets | 59,632 | ||
Attributable to the Company | 13,348 | ||
Attributable to redeemable non-controlling interests | 46,284 | ||
GRP-CIP | |||
Variable Interest Entity [Line Items] | |||
Investments | 150 | 150 | |
Due from brokers ($145 and $1,743) | 32 | 147 | |
Other assets | 0 | 0 | |
Total assets | 182 | 297 | |
Due to brokers | 0 | 0 | |
Other liabilities and accrued expenses | 5 | 5 | |
Total liabilities | 5 | 5 | |
Net assets | 177 | 292 | |
Attributable to the Company | 177 | 292 | |
Attributable to redeemable non-controlling interests | 0 | 0 | |
REOF | |||
Variable Interest Entity [Line Items] | |||
Investments | 20,636 | 2,649 | |
Due from brokers ($145 and $1,743) | 0 | 0 | |
Other assets | 51 | 593 | |
Total assets | 20,687 | 3,242 | |
Due to brokers | 0 | 0 | |
Other liabilities and accrued expenses | 515 | 415 | |
Total liabilities | 515 | 415 | |
Net assets | 20,172 | 2,827 | |
Attributable to the Company | 15,808 | 2,827 | |
Attributable to redeemable non-controlling interests | 4,364 | 0 | |
Total | |||
Variable Interest Entity [Line Items] | |||
Investments | 122,308 | 127,912 | |
Due from brokers ($145 and $1,743) | 1,272 | 1,340 | |
Other assets | 406 | 1,589 | |
Total assets | 123,986 | 130,841 | |
Due to brokers | 1,315 | 926 | |
Other liabilities and accrued expenses | 748 | 689 | |
Total liabilities | 2,063 | 1,615 | |
Net assets | 121,923 | 129,226 | |
Attributable to the Company | 44,393 | 40,083 | |
Attributable to redeemable non-controlling interests | $ 77,530 | $ 89,143 | |
[1]Asset and liability amounts in parentheses represent the aggregated balances at September 30, 2022 and December 31, 2021 attributable to variable interest entities consolidated by the Company. Refer to Note 4, Investments for further discussion. |
Fair Value - Fair Value Measure
Fair Value - Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | $ 143,963 | $ 130,930 | $ 143,963 |
Trading | 57,729 | 23,711 | 57,729 |
Equity method investments | 20 | 13 | $ 20 |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 91,901 | 104,591 | |
Equity investments at fair value | 130,930 | ||
Total investments | 201,712 | 154,654 | |
Derivatives - assets: | 4,581 | 690 | |
Derivatives - liabilities: | 120 | 887 | |
Fair Value, Measurements, Recurring | Total return swaps - commodities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives - assets: | 75 | 481 | |
Derivatives - liabilities: | 116 | 17 | |
Fair Value, Measurements, Recurring | Total return swaps - equities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives - assets: | 3,067 | ||
Derivatives - liabilities: | 867 | ||
Fair Value, Measurements, Recurring | Forward contracts - foreign exchange | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives - assets: | 1,439 | 209 | |
Derivatives - liabilities: | 4 | 3 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 91,901 | 104,591 | |
Equity investments at fair value | 129,087 | 128,855 | |
Total investments | 129,087 | 128,855 | |
Derivatives - assets: | 0 | 0 | |
Derivatives - liabilities: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Total return swaps - commodities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives - assets: | 0 | ||
Fair Value, Measurements, Recurring | Level 1 | Forward contracts - foreign exchange | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives - liabilities: | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 779 | 116 | |
Total investments | 58,508 | 23,827 | |
Derivatives - assets: | 4,581 | 690 | |
Derivatives - liabilities: | 120 | 887 | |
Fair Value, Measurements, Recurring | Level 2 | Total return swaps - commodities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives - assets: | 75 | 481 | |
Derivatives - liabilities: | 116 | 17 | |
Fair Value, Measurements, Recurring | Level 2 | Total return swaps - equities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives - assets: | 3,067 | ||
Derivatives - liabilities: | 867 | ||
Fair Value, Measurements, Recurring | Level 2 | Forward contracts - foreign exchange | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives - assets: | 1,439 | 209 | |
Derivatives - liabilities: | 4 | 3 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments | 12,610 | ||
Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 1,487 | 1,959 | |
Total investments | 1,507 | 1,972 | |
Common stocks | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 128,440 | 126,417 | |
Common stocks | Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 127,672 | 126,301 | |
Common stocks | Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 768 | 116 | |
Common stocks | Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Company-sponsored funds | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 191 | ||
Company-sponsored funds | Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 191 | 103 | |
Company-sponsored funds | Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Company-sponsored funds | Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Limited partnership interests | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 13,967 | 1,816 | |
Limited partnership interests | Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | 0 | |
Limited partnership interests | Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Limited partnership interests | Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 12,610 | ||
Limited partnership interests | Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 1,357 | 1,816 | |
Master limited partnership interests | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 410 | 986 | |
Master limited partnership interests | Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 410 | 986 | |
Preferred securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 825 | 1,465 | |
Preferred securities | Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 814 | 1,465 | |
Preferred securities | Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 11 | 0 | |
Preferred securities | Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Other | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 130 | 246 | |
Other | Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Other | Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Other | Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 130 | 143 | |
Fixed income | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 23,711 | ||
Fixed income | Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 0 | ||
Fixed income | Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 57,729 | 23,711 | |
Fixed income | Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | $ 0 | 0 | |
Equity method investments | Cohen & Steers Global Realty Partners III-TE, L.P. | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investment, ownership percentage | 0.20% | ||
Equity method investments | Cohen & Steers Global Listed Infrastructure Fund L.P. | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investment, ownership percentage | 0.01% | ||
Equity method investments | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investments | 13 | ||
Equity method investments | Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investments | $ 0 | 0 | |
Equity method investments | Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investments | $ 20 | $ 13 |
Fair Value - Fiar Value, Assets
Fair Value - Fiar Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | ||||
Balance at beginning of period | $ 18,592 | $ 0 | $ 0 | $ 0 |
Purchases/contributions | 0 | 0 | 19,380 | 0 |
Sales/distributions | (5,874) | 0 | (5,874) | 0 |
Unrealized gains (losses) | (108) | 0 | (896) | 0 |
Balance at end of period | $ 12,610 | $ 0 | $ 12,610 | $ 0 |
Fair Value - Valuation Techniqu
Fair Value - Valuation Techniques (Details) $ in Thousands | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Limited partnership interests | $ 12,610 | $ 18,592 | $ 0 | $ 0 | $ 0 | $ 0 |
Level 3 | Discount Rate | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Measurement input | 0.0825 | |||||
Level 3 | Terminal Capitalization Rate | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Measurement input | 0.0725 |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | ||
Derivative [Line Items] | ||||||
Notional amount, long | $ 13,480 | |||||
Notional amount, short | 38,678 | |||||
Derivative assets, fair value | 690 | |||||
Derivative liabilities, fair value | 887 | |||||
Due to brokers | [1] | $ 4,460 | $ 4,460 | 927 | ||
Derivative, gains (losses) on derivative, net | 4,684 | $ 940 | 11,422 | $ 156 | ||
Corporate, Non-Segment | ||||||
Derivative [Line Items] | ||||||
Notional amount, long | 2,247 | 2,247 | 2,549 | |||
Notional amount, short | 46,865 | 46,865 | 38,678 | |||
Derivative assets, fair value | 4,581 | 4,581 | 303 | |||
Derivative liabilities, fair value | 120 | 120 | 887 | |||
Derivative, gains (losses) on derivative, net | 3,856 | 321 | 7,434 | (1,535) | ||
Futures - commodities | ||||||
Derivative [Line Items] | ||||||
Derivative, gains (losses) on derivative, net | 0 | 813 | 0 | 2,981 | ||
Total return swaps - commodities | ||||||
Derivative [Line Items] | ||||||
Notional amount, long | 2,247 | 2,247 | 2,549 | |||
Notional amount, short | 1,939 | 1,939 | 3,810 | |||
Derivative assets, fair value | 75 | 75 | 94 | |||
Derivative liabilities, fair value | 116 | 116 | 17 | |||
Derivative, gains (losses) on derivative, net | (27) | (748) | (242) | (2,741) | ||
Total return swaps - commodities | Consolidation, Eliminations | ||||||
Derivative [Line Items] | ||||||
Notional amount, long | 10,931 | |||||
Derivative assets, fair value | 387 | |||||
Derivative liabilities, fair value | 0 | |||||
Derivative, gains (losses) on derivative, net | 828 | 619 | 3,988 | 1,691 | ||
Total return swaps - equities | ||||||
Derivative [Line Items] | ||||||
Notional amount, long | 0 | 0 | ||||
Notional amount, short | 28,327 | 28,327 | 22,899 | |||
Derivative assets, fair value | 3,067 | 3,067 | ||||
Derivative liabilities, fair value | 0 | 0 | 867 | |||
Derivative, gains (losses) on derivative, net | 3,044 | 100 | 6,447 | (2,408) | ||
Forward contracts - foreign exchange | ||||||
Derivative [Line Items] | ||||||
Notional amount, long | 0 | 0 | 0 | |||
Notional amount, short | 16,599 | 16,599 | 11,969 | |||
Derivative assets, fair value | 1,439 | 1,439 | 209 | |||
Derivative liabilities, fair value | 4 | 4 | 3 | |||
Derivative, gains (losses) on derivative, net | 839 | $ 156 | 1,229 | $ 633 | ||
Cash | ||||||
Derivative [Line Items] | ||||||
Trading investments and pledged as collateral | 1,500 | 1,500 | 2,200 | |||
Due to brokers | $ 3,100 | $ 3,100 | ||||
Cash | Individually Immaterial Counterparties | ||||||
Derivative [Line Items] | ||||||
Trading investments and pledged as collateral | $ 500 | |||||
[1]Asset and liability amounts in parentheses represent the aggregated balances at September 30, 2022 and December 31, 2021 attributable to variable interest entities consolidated by the Company. Refer to Note 4, Investments for further discussion. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 39,614 | $ 51,387 | $ 112,604 | $ 156,223 |
Net (income) loss attributable to redeemable noncontrolling interests | 4,956 | 96 | 25,940 | (9,309) |
Net income attributable to common stockholders | $ 44,570 | $ 51,483 | $ 138,544 | $ 146,914 |
Basic weighted average shares outstanding (shares) | 48,815,000 | 48,386,000 | 48,765,000 | 48,273,000 |
Dilutive potential shares from restricted stock units (shares) | 502,000 | 876,000 | 522,000 | 703,000 |
Diluted weighted average shares outstanding (shares) | 49,317,000 | 49,262,000 | 49,287,000 | 48,976,000 |
Basic earnings per share attributable to common stockholders (in dollars per share) | $ 0.91 | $ 1.06 | $ 2.84 | $ 3.04 |
Diluted earnings per share attributable to common stockholders (in dollars per share) | $ 0.90 | $ 1.05 | $ 2.81 | $ 3 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,000 | 0 | 2,000 | 0 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
U.S. statutory tax rate | 21% | 21% | 21% | 21% |
State and local income taxes, net of federal benefit | 3.10% | 3.90% | 3.10% | 3.90% |
Non-deductible executive compensation | 1.60% | 1.80% | 2.60% | 2.10% |
Excess tax benefits related to the vesting and delivery of restricted stock units | 0% | 0% | (3.30%) | (3.00%) |
Unrecognized tax benefit adjustments | 0.10% | 0.90% | (3.60%) | (2.60%) |
Other | 0.10% | (1.60%) | 0.20% | (0.70%) |
Effective income tax rate | 25.90% | 26% | 20% | 20.70% |
Related Party Transactions (Det
Related Party Transactions (Details) - Affiliated Funds - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Related Party Transactions, Revenue [Abstract] | |||||
Investment advisory and administrative fees | $ 96,187 | $ 103,426 | $ 301,227 | $ 283,480 | |
Distribution and service fees | 8,557 | 9,900 | 27,431 | 27,371 | |
Total | 104,744 | 113,326 | 328,658 | 310,851 | |
Related party transaction, expenses from transactions with related party | 4,500 | $ 4,200 | 13,100 | $ 11,500 | |
Receivables due from company-sponsored mutual funds | 34,500 | 34,500 | $ 40,800 | ||
Payables due to company-sponsored mutual funds | $ 800 | $ 800 | $ 1,100 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Aug. 31, 2022 |
Leases [Abstract] | ||
Lease term | 16 years | |
Operating lease, liability | $ 210.1 | |
Lessee, Operating Lease, Liability, to be Paid, Per Year, In 2029 | $ 14 | |
Lessee, Operating Lease, Liability, to be Paid, Per Year, Beginning 2024 | 13 | |
Lessee, Operating Lease, Liability, to be Paid, Per Year, Beginning 2034 | $ 15 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Commitment to invest $ in Millions | Sep. 30, 2022 USD ($) |
Contingencies [Line Items] | |
Long-term purchase commitment | $ 50 |
Long-term commitment, funded amount | $ 17.4 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Subsequent Event [Line Items] | |||||
Dividends declared per share (in dollars per share) | $ 0.55 | $ 0.45 | $ 1.65 | $ 1.35 | |
Dividend Declared | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared per share (in dollars per share) | $ 0.55 |