CNS - Earnings call transcript Q2 2020

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Cohen & Steers Second Quarter 2020 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded, Thursday, July 23, 2020. to President conference Cohen and like Heller, to & now Vice Senior Corporate would turn over the Brian Steers. I Counsel of ahead. go Please

Brian Heller

Thank second & call. you, the XXXX earnings conference and Steers to welcome quarter Cohen

report us, me our Joe and I comments to President, want and Joining update the Steers; to remind you Matt those constitute solicitation statement. We March our Financial our duty release statements. information recent presentation, buy Harvey; may these actual our answers accompanying to filings. are report Officer, an our no most Chief XX, reasonable Bob differ any other to quarter are forward-looking on that due none for of our statements to questions SEC our based Officer, of a currently and earnings sell available materially offer to statements Chief the assume Stadler. any believe Executive some quarter but or Form the XXXX could on fund. described XX-Q your our and of outcomes securities of ended number on include offer to factors, second our quarterly annual in including forward-looking Form We XX-K, of an Further,

our Investor included to to conjunction Our of is in well measures our with as filings links in are section non-GAAP are website financial SEC The at in our extent performance. as Relations the presentation reconciliation release presentation believe results. and earnings earnings these and presentation should the release available. the financial our www.cohenandsteers.com. evaluating non-GAAP read also reasonably available GAAP contains meaningful These measures in measures we that be non-GAAP of financial A

the participating each over of to call that, like to turn on I'll note are I'd Finally, Matt. remotely. call With today's speakers' our that

Matthew Stadler

morning, Thanks, Brian. Good everyone.

provide quick amid discuss I our pandemic. the our COVID-XX to update quarter like capabilities I'd on second a Before results, operational

using perform the the work to were in business continuity a quarter. effectively that environment, implemented during remote measures first operations Our continue

both maintained as and with an have communications, well with network controlled and of the work employees We environments across organization. clients active as and reliable effective

GAAP reported remarks this results the first prior primarily sequentially. the earnings including use of can morning providers revenue billion to under have and the quarter $XX.X support and the compared will quarter remains XX to per $X.XX, prior prior results. found quarter or with earnings XX Slides $X.XX interruption. we always, of with XX service and reconciliation $XX And to assets and sequentially. our continued release the on be prepared quarter of on that billion from lower as-adjusted the quarter was key team in decrease assets executive of sequentially. the million compared in A management for XX attributable $XXX.X and focus various $X.XX as technology The quarter in $XX.X billion million without of operations to may vigilant Our average infrastructure, was with Revenue our and earnings Pages year's scenarios $XXX.X our year's contingency $XX in on My Average for million compared share arise. respond under to Yesterday, the and year's management. presentation. as-adjusted were third-party the

million second $XX.X Operating a call last in million shift was $XX.X our due quarter and the the Our anticipated with $XX.X than compared primarily income million with first compared basis basis effective less point favorable in basis mentioned quarter on the This asset second the XX XX.X implied rate quarter was fee prior the in sequentially. to mix. in X reduction year's points was decrease quarter. in points

distribution fees lower compensation and margin decreased G&A. on primarily consistent and service XX.X% last decreased due decrease Expenses management G&A in a second the and was the to funds. result due The benefits, XX.X% sequential provided our U.S. activity call. to due And quarter guidance quarter. basis we to fee average in primarily compensation last XX.X% lower in with that operating on and to T&E decrease open-end The lower revenue to ratio was expenses, amid service the expense the Our primarily distribution travel XX.X% reduced entertainment for assets a under from was pandemic. and

This basis. effective differential, quarter adjustment bring ratio lower about than to a provided in higher-than-forecasted four U.S. cumulative the our last trailing earnings quarters. was of certain tax cash, the XX.X%, of the securities rate Treasury displays pretax effect to permanent on the which diminished the due and was for our differences current Our year-to-date guidance and on presentation to included XX XX% the primarily call. seed for Page investments a corporate investments

totaled at $XXX.X last liquidity firm $XXX.X Our end compared million with quarter quarter. million

from first included participants that firm's tax You on arising the and the payment customary units our the importantly, incentive quarter stock restricted delivery and remain behalf program. will vesting payroll we recall of obligations of equity funding of of debt-free. in bonuses the Most

and quarter. million $XXX a $XX.X inflows We million consolidation from from ever. billion. $XXX $X.X seven increase billion an quarter's global into resulting associated inflows U.S. Net from of inflows rebalancings. million Japan REITs into pipeline. had to inflows represented these of million U.S. estate model of billion, due class $XXX $X.X mandates net was by manager compared under unfunded net which of from from $XXX net inflows portfolio. XX. had of billion highest portfolios. offsetting portfolios. Open-end increase quarters during inflows $XXX primarily of sub-advisory account accounts last million $XXX accounts and of fourth were March $X.X Distribution during eight Distributions the billion mandates. $XXX outflows net $X real of portfolios reinvested. our with institutional marked their after partially inflows Japan during were these which $XXX existing sub-advisory primarily Bob net client net was second The Steers U.S. from from and Sub-advisory billion new who million, and pipeline offset at the were update distributions Japan net awarded market global last inflows of had of $X June rebalancings on net of accounts. of $XXX estate billion Partially of intermediary $XXX million $XXX the was million terminated provide quarter. of multi-asset advisory inflows excluding had quarter, of straight quarter totaled totaled This the million recorded The management which XX, inflows strategic totaled appreciation net inflows compared $X.X of outflows. Assets of Advisory with in an quarter will from to with funds quarter million added included $XXX billion of first of consecutive real $X million our or and million from the record XX% inflows

Let continue at a be we and of few for from that the half as high growth, the under perform the as respect to control, the economic me such with pandemic. Notwithstanding investment in cannot within such affected market briefly from discuss assets results a we first control, matters our items very level. our to management the uncertainty But resulting and the volatility performance by COVID-XX quarter, year. to increase continue to consider factors financial second our organic

result, we at with during The a expect quarter to class revenue higher net legacy inflows of majority XX.X%. share open-end a remain ratio As component. compensation-to-revenue was the into recorded our share a

be by by recruitment And finally, tax to in expenses G&A and $XX and half As full-year distribution increase XXXX. to rate year a we decreases travel and XX% in of as be basis and the hosted the targeted we in increases X expect project to second second result, the sponsored our the technology. we approximately points. entertainment with flat of for expect are to basis million being points recorded approximately and our X.X XXXX, half for conferences offset effective We

discuss investment performance. I'd like Harvey, turn will it Joe over Now our to who to

Joseph Harvey

asset investment the everyone. all classes the rallied Financial and and review good in perspective geographies reopen Thank the some assets you, I on and major admits positioned Today, improvement are then strongly and provide of will March pandemic. the curves the late of the were to of second Matt, how returns in some morning, our lows our off stimulus performance, markets ranging unprecedented and virus spurred businesses. parts by listed in and fiscal parts world U.S. efforts quarter, wide monetary significant financial across and

businesses. areas is are that with the and The wide providing better range capital is this open certain However, the economic of been capital have a virus cases markets far becoming fallout understood recent of were globe. news crisis volatile and a good in across from to rise over

outperformed strategies the Turning second to of three their our core our scorecard. quarter, benchmarks. In nine performance

sectors. AUM, averages the portfolios For three a preferred was of technology, infrastructure improvement from outperforming X rated improved XX% years. the Morningstar open-end X fund in is The Measured was near nine outperforming The higher star our infrastructure are an discretionary years XX over over quarter last which figure five-year figures last XX% XX% or are from perfect. strategies absolute by consumer our from XXXX. our stock outperforming remains AUM months, and On three-year underperformed and primarily basis, beta last by XX% outperformed. attributable strategies basis, quarter five energy of and one-year core of the on up and market, global-listed beginning the REITs and at six to one equity XX% while strategies. are our by in of batting led

narrowly-led bank investment strategies credit yield. preferred and performance corporates, grade with high Our compared loans

performance, of most the which recession second growth lower of reflecting strategies are and our underperformed In pandemic have of explains in and and powerful the predicting the been balanced terms portfolios quarter and course our the relative our scale, rally. the beta of partially cyclicality, on uncertainties some the why between

new to suit Turning credit recapturing reducing quarter, strategies securities outperformed by strongly in via A risk thereby QX. low markets better issuance, We both issuers some our lost QX, cycle rebounded alpha preferred as sheets core the in strategies XX%. pulling and virtuous duration further Preferred in and returning in AUM. strengthen our credit in to spreads. equity balance enabled and major in second

remain for strategies strong. benchmarks the their peers performance behind has the year, While past been versus

five-year competitors on preferred the to compelling compared timeframes. adding & points and yield corporates analyze positioned number XXX a income plummeted. in on insurance to performance part is and quality one flagship Steers' compares Bank Spurred we two of the majority by investment preferreds. substantial on preferred fund, X% XXX. yields one, appreciation value. and income fund preferreds preferred securities universe, Cohen with as Central closest income long-term number relative basis could strong We average Our have offer grade lead securities This versus companies income X.X% with believe and overall spread buying, three banks health. The advantage. its for the or normalize, price of This to representing investment recently intensively grade their a spreads fell With

provisions for capital banks financial Fed reported a positive with strength potential While stress loan position building. downturn the continued underscored recent high recently losses, and substantial ratios substantial this health We very liquidity. of further entered lines of to The balance bottom and most report and tests capital sheets.

related considered, faced the infrastructure COVID, airports, Some XXX credit yet equity compared preferreds. our freight and Infrastructure we We the be these claims basis to risks past Global-listed line fact railways less earnings All We defensive relaxation a believe those of economic multiple historically relative quarter, claims premium. sub-sectors have Traditionally, activity global one. returned in and index that in remains affected at led so global from for quarter performance or benchmarks to at resumption a XX% underperformed underperformed quarter are with an a has XX% insurance during lagged. of investors an far XX%. with U.S. points in with of with the basis, inflection to toll that well economy. listed the appear the compensated our travel in issue, the attractive XX% in despite year. companies not strategy. but benefit X.X% our infrastructure energy. infrastructure alpha exists strategy position utilities a global cash they real with We strong best quarter. universe from our sub-sectors line of roads, specifically is over the trading in and opportunity comparing have restrictions, valuation returned midstream emerged believe returned whereas flow in stocks the changes such and This estate in the the COVID-related when core and performed with is infrastructure to traded benefiting on our U.S. REITs as stocks benchmark

real viewed businesses rightly working for as attractive two, number whose estate fundamentals or some than And and class, be asset the in investors underperformed in beta sectors. REITs are As the longer an one, pandemic. are number permanent impairments rally less because discounting lower fundamental may

the gaming a with and real is the adversely As most retail impacted hotels, reminder, about XX% universe being of affected. estate directly

the On the positively cell or about XX% other centers universe are and end of is towers, less businesses of the spectrum, data warehouses. affected, that including

XX last alpha across have geography risk and estate strategies all by has portfolios, our in the profile real the been For outperformed, substantial. months, of many and

As a result, most are and manager. gain be to are an to unprecedented. well challenging, market one times investment is the The This yet positioned we exciting secular share. cyclical of changes

were dislocations engaged they capabilities our the organize Many and on proud and mobilized more build our of continue company the clients. world the where crisis, our We to clients for that closely financial I'm have we client's our capitalize work portfolios and to we are able with than communicate with arise. of liquid investment going. our in is and have how to therefore, research

Looking ranging and as an seeing economy preferred at some we profiles capital our more securities infrastructure via election the in Considering of from renewable building digital you presidential fixed more infrastructure. provide jobs and are about the and current the big rate from way approaches, to In income. bridges infrastructure the life attractive fiscal to benefits fixing infrastructure. will energy picture hear while roads the Meanwhile, a investments most and stimulus income of environment, zero for markets. interest creating

could private tangential invest infrastructure business, formation. potentially in picture a believe and our investment therefore are a broader business together, things capital vehicles we've countries, to use as we need hard opportunity. taken these the great of assets advantaged Ultimately, infrastructure sector paint that other dedicated some they While in of tax to and seen to foster we

and creating the the Fundamentals cycle, estate, opportunity. an the public resetting equal in creating reset will capital. to market and response the of both set thereby acquisition those the secular in work opportunities recession occurred cyclical shifts as its opportunities. the market real discovery valuation the into For with public way market, already pandemic The are next demand markdown price private Slowly and available for and for private fashion will provide tenant forces. first

expect estate companies, to to opportunities point businesses distress create to sheets. that of are up value. XXXXs, have their provide capital we back turning every well fix As throughout provide capital going to real their take to to see to sheets early the to help healthy acquisition advantage companies and we help positioned cyclically shore to We opportunities, strong businesses balance balance

I'll may of In opportunities companies Bob to we cycle in call expect the alpha invest on With over the myriad will that resetting create private we a clients. find few opportunities. the closing, behalf that, turn Finally, Steers. of to

Robert Steers

good Great. Thanks, Matt and Joe, and morning.

and coronavirus, market into regarding aspects of As and any the puts economic Schools, path you spread but of conditions of to we plotting fully and fly state timing current all challenge. unpredictable environments they on seemingly what the The the balance normalcy. of in evolve remains shape to are expect know and federal aware, governments the businesses, social, forward now, to for courses operating as the are the year. all on adapt return a based question the

those costs are development targeting are the to we've control. next Steers this to that continues and alternative that assets a Notwithstanding we for existing And that people variable uncertainty, I to October, though return are manage in are growth We prepared & Phase year Cohen prospective the to we in delay operate we U.S. aggressively investing different. unprecedented strategies and stay if in in remotely by no real our necessary. capitalize until that potential while identified and continuing income plan course product on opportunities to

our decline platform. ever. versus other report Given have rate billion difficult our continues and pleased I quarter. of many this strongest every in of but March, actually organic investing to planning especially quarter. for this capabilities record the our was positive motivated equity. to XX% By Only many factors positions. securities Japan broadened There backdrop, substantially we're and our this The quarter region. to that generated distribution In the into $X.X and existing listed Many relationships one consistent in that actually were new and drove near inflows, long-term channel or was produced growth sub-advisory. Also, developed arbitrage add diversified really private respects, and initiate quarter plan, believe quarter of flows investing one in a multiple contrast the and and market with in years superior by valuations we net source results, significant strategic to dominated has public between inflows private REITs, that favor

In addition, the the institutional of prospect overall demand after and for infrastructure remains real government strong, with sponsored investments especially assets elections. from investors coming

wealth billion, $X.X The to do relationship channel platform. REIT product in was year. net $X.X our down a $X.X additional inclusion second & and U.S. Cohen model-based Breaking of up putting Realty inflows Shares the the the growth attributable billion, quarter quarter, billion fund the record flows. XX%. net to fund Steers anticipate of from large half a which respectively. the in Turning gross record this achieved Organic inflows were primarily strong financial and We another flows intermediaries was of in inflows,

was investment on of the and result As that sizable of our I accounts work national the years team. side, collaborative recognize new the want relationship between to

October segment fund. an first from quarter. $XXX schedule and a tax inflows preferred with securities produced this the XX% for into also net diversity inflows reminder, as Flows our sources rate. net the billion on of launch we So impressive RIA rebounded of produced of of thank closed delivered advantage organic insurance net flows, for remain marketing end strong inflows of sectors of for securities $XXX a net most growth preferred trust growing the And channel growth XX% in organic funds the our million you. $X.X outflows the Bank quarter in and wealth Highlighting million a growth.

achieved two COVID-related Japan $XXX industry-leading in Global very with plan the maintain produced outflows before experienced of best in launched I'm its sub-advisory million we an next-gen with month Similarly, pipeline of of $XXX with even inflows organic previously our And Of experience which conjunction contributions to our the new time, approximately quarter of remotely, conditions. the saw strategic domestically, we $XXX million which directly of Jeff, for $XXX million previously the with termination, along $XXX comparable continue strong, while to net ex-Japan included efforts. OFI flows magnitude. as but of MUKAM net in and in strategic Business American of simultaneously expanding of with we mandates, region net development and Advisory million institutions, marketing At the served joined most our of We cumulatively Four having DCIO inflows. additional in $XXX in not pleased who North Sub-advisory we Jeff plan to the made diversity only We goal is of also funded growth only memory, inflows absolute one infrastructure sales quarter. occur and simultaneously million SMBC, consecutive large and eighth to Asset going infrastructure in has the our Funds report million quarter, sources after. inception. global-listed distributions this strong from existing also we partners. the a our and sales with our the beginning $XXX are roles $XXX is lead efforts. which Dan pace can the And sales performance our were in Global focusing our recognize billion team in later of vast since Charles, from have $XX notified brings our positive as growing institutional generated every experience sales, global-listed a Sharon teams quarter. and improve effort. theme, $XXX of In million net million related. were originating Delivering We unfunded Daiwa growth $X.X of relationship totaling Management. million Gramercy Again, are can and was $XXX will net majority performance be REIT February, as that of intermediaries as U.S. be new which REIT new and last which to and also business quarter, that non-U.S. and tactical. million extensive to $XXX us progress Development our the was in seven those be The net the million are and improving organic of which Management been to work recent quarter. inflows adhering which of estate a towards disclosed with a had advisory limited the expected strategies, termination with of of million truly channel awarded awarded, in was in Head due well mandates, were portfolio strategic these we billion. $XXX U.S. inflows EMEA, funded are clients. were $X.X quarters APAC their $XXX the Reinforcing the flows. pleased generating partners, expected. $XXX on pipeline, present respectively. new product did was and the million ended million net directed diversity global the to million million $XXX through employees flows to to from consider in majority quarter ex-Japan of portion were U.S. global and the real quarter the remained of

initiatives, stop we X of office ensure In recommended continue in least all securities going meantime, integrate that safety to questions. that, ask sustain trajectory. our to floor this our With the Our Demetri October products new of asset until at product liquid to we additional ETF and including on return taskforce help illiquid the and has current open real to mode actively to the customized I'm are and strategies, solutions employees. to working growth that active

Operator

question comes the Evercore [Operator you. line from with Instructions] Our ISI. Please go ahead. John of Thank Dunn first

John Dunn

Good morning, thanks. guys, and

advisory the flavor mix you give of quarter gotten of the mid-teens years where channel, strategies few from sort clients of the us to are almost So a composition of of from kind point? of Can the it's the a at coming up the ago. mix this and

Robert Steers

region John. Sure, did real we of the large, diverse mentioned, is and the We relationships. come mainly that bulk were mix. from in estate. EMEA a – the accounts, which Asia that coming of a it had, U.S. mandates positive We and from have with global There was multi-strat, bulk deep the least the quarter. as mainly terms I is it existing assets I lot had is in long would both of the quarter, at a the infrastructure European strong It mandates and that we in unfunded the real sense estate. have of did emphasize global-listed from awarded But in we had the

and had when we So downdraft same air adding in expect new complete I mentioned, new up the they strategies. to At improve and on better phone there. as confidence U.S., up results to bulk hope the mandates our new talent brought from and clients us in we the do the additional or do and generating picking pocket, time, and calling the launching in developed, when

John Dunn

for Europe fund when going how threshold you over you're there? meaningful guys a Got just with then in it. think size do over what strategies that now finding retail are the looks hit you direct some your more And reception those approach? of you like that And of

Robert Steers

a new head hope The efforts. of there our hold great Europe. we've for a in are but another of flows effort and well near to starting this have been lagged end we usage our last fall expectations, our that's crank we're in our fund hoping I really up months, essentially the on process Well, six the question. search funds into

not bring we're to threshold going again, in the is But be there. to we seeing that reinitiate we committed really find we'd hoping, start these scalability and like you'll in that think we're effort fall that absolutely substantial, the a funds. to order strong to are to I And there. are growing this starting some talent at

John Dunn

you. Thank

Robert Steers

John. Thanks,

Operator

Our America. line next the Please of Carrier Bank Instructions] from comes go ahead. Mike [Operator question with of

Michael Carrier

to have in Good taking great morning. guys Thanks and this been quarter question, quarter a flow a It's ask distribution. a making investments quite you for tough but probably few the questions.

ask you update? be expect So not growth was put curious have, products the you just side, that realize Cohen particularly areas quarter it, you & to and on see to get that wanted traction putting that just are the guys an on performance the of penetrated in up just when update, further institutional you on that this the to given penetration had up guys mentioned but maybe of expect further that you under to the you kind or organic versus rate, some when Steers probably the where right

Robert Steers

And a a more institutional Dan cover great we that reorganized And led Charles, by the prior we effort mentioned question. as call, in we those regions. focus. having teams regional channels away It's from U.S. and Sure. of our our reorganized

into we months as mentioned seeing six our we're in it. interest so encouraging activity. We're And And remains very in remarks, some strong. real institutional assets

gain So that uptick expect market XX we I'd than say sales. share approach To honest, a see months think because I I this of before activity to give to that, would better we now be institutional well. will in Again, continue. do do new to our we're like of significant between year-end, expect product. to And expect and we going quality well significant but the to

again, So improve. levels quarter the improve, until I and next first improvement us, a so raising months expect expect next joined we're asset Sharon – starting function to and stair just see to I six But improve, probably wouldn't into activity Jeff year. productivity to reorganization. would of to

Michael Carrier

Okay. Thanks. then follow-up. just a And

something mentioned you money in lumpy the you the that some just tactical on in a I then think assets. side, said came I maybe And – during strategic think outflow. either some the quarter, I quarter, of third the infrastructure think

of a past, saw I kind that – think over money in exit the in meant and sometimes we or come timeframe. then that shorter

right from a So what that standpoint? curious, I if just flow that heard or means

Robert Steers

that right. Yes, you heard

There's the from very existing tactically the in long-term time-to-time outperform, So we portion other no came But flows if knowing large or the believe, A of two long-term of hand, as from majority might back. money some is clients overwhelming – view money, we'll from take asset or very, add them. some subtract in, they way and retail relationships money whether accounts. will that are it I one the from this strategic but of from of that tactical was on their allocations.

As Joe the still great year. mentioned, double-digits There's down still value. are REITs for

being participating a of the So And nice I that in bump we side in money. don't the we'll probably flows, addition then, from to second growth wealth truly there. There will third model-based be anticipate forward. the be we in – a quarter, also platform. had additional but program of going intermediaries overall this real financial the course, in our And boost had short-term

to added So long-term, organic continue it into will be growth.

Michael Carrier

lot. Thanks Okay. a

Robert Steers

Mike. Sure,

Operator

question comes Please go ahead. line the of from KBW. Robert next Our Lee with

Robert Lee

update next things, improved, over call it's some business earlier, I of stabilized thoughts so? a of And or Good there can for mentioned had kind you. on morning. in maybe about update us on your But little I year [indiscernible]? that Thank the of changes Great. have maybe over or a taking from bit and And certainly, the apologize this questions. the the so last late. potential you you and kind if maybe maybe Thanks now year sub-advisory us

Robert Steers

what's that It's the sector? outlook question. the a little hear hard to basically sub-advisory it Is for

Robert Lee

Japan. Yes, mainly in

Robert Steers

Daiwa's in a with REIT it so it's Okay. performance. the because will at is our until selling U.S. been funds as there the selling existing beyond funds doesn't. always present the our well. are top partner, REIT chug that to There's flows continue our over of the are portfolios. there by dominated And category same Daiwa, – along But and time, outlook The

strides, very next-gen distributors, with REIT. have we new However, made on SMBC and new as such MUKAM products substantial developing

environment over limited As we've with in I over exactly there COVID mentioned, million raised $XXX marketing. the

it's – the growth sub-advisory, seeing over there. business not We in but institutional also are

So view we to Japan sub-advisory. take long-term a

and has with relationship distributors and exciting significant new strong, strategies. been to developing in product made very with Daiwa – continues into have strides be Our we with new

very Japan feel So sub-advisory. we about good

Robert Lee

has most sense into of the or penetrating various Okay, I U.S. opportunity say, you're the some But where you or firms. asked maybe or channels? like parsing, Can great. of net been making RIAs, the least wirehouses if maybe well And channels maybe initiatives of progress worth better before. just of in in channels, you a the apologize follow-up. where high additional penetrated and you're see one some some this feel give us you regional

Robert Steers

Well, no identified there's absolutely us have our our to channel, teams we've but years for commodities. managers. and think, are and RIA relationship become hybrid, that fastest ago doubt And growing. not I that is the sales strategies the anything, candidly, And industry-wide migrated generic, investment they're

whether asset result, and focus white or buzzword a they're manager deliver we we and who internal channel, around They research research. to want want rally as fairly of to the RIA more And endowments highest in act support in the in deeper. on teams, dives I'm we or so wide take higher by channel saying foundations. the deep allocation is quality large papers and And of all this. to really confident a into like in the margin, that We BD everyone go

to don't we want commoditized marketplace. in so And compete

putting deeper, so or than where in institutional that generating, we're in them, we've the giving the developed. platform we're wealth really marketplaces we're we're sharing those increasingly markets, generation, embracing we migrating the intellectual can it's go and And the end-market passive our them, property more from with or tremendous away alpha that those focusing on that the we're appreciate and are higher alpha chips low-cost, support that, whether and

So and those butter lot and large RIA do of that our are independently their seeing and bread a where that's own we're act research traction.

Robert Lee

Thank color. the appreciate I you. Great.

Operator

Instructions] of question go ahead. Dunn We do Please have follow-up [Operator the a Evercore line ISI. John from with

John Dunn

it Where with of this be? rest about in world clients. do do here? process think non-core to strategies did you is – could you grow And here? and have Maybe where you of It I years want mean, can you think and could the finished of more through shedding we sub-advisory. are little a going the best two quarter it that you've been from talk from go the revamp bit it

Robert Steers

I do.

eliminate strategic we're bleeding effort or and have a year took I of we steadily relationships, which non-strategic two lack didn't multi-strategy, think to assets we a just through where relationship.

We We're focus also And that. not unlike that class. trends on and also OCIO account one. hopeful go believe identify dozen a And that big it for segment continue as and our generate long-term so but be again, growing on. generate OCIO continue the not to. promote think half the want of expect we significant The partners also it's asset existing very deeper. our the strong. and such, And going winners. they to embrace our are trends, in and relationships to we sub-advisory DCIO us, We our motto our real are unlike to the really higher in RIA that that can believe separate initiative, activity, we And as to industry assets. can And that a is rapidly OCIOs is and to the

focus And so the be people, who things We as all things all there'll not want channel. our sub-advisory be be in OCIO we to to to wealth And trying efforts we're winners all opportunities the channel. long-term to just to all going be attractive think, not think I in on we're here. trying people are the some, to

John Dunn

much. very Thanks

Operator

this Bob continue now back time. further your Please to with Chief questions call Executive will at no There turn presentation closing Steers, or Officer. are the over remarks. I

Robert Steers

everyone keeping you as And We please, informed thanks for to look safe. us quarter this Thank forward you. this progresses. Well to stay morning. joining everyone

Operator

you for does thank that lines. conference for We ask you That disconnect and your the please participation conclude your call today.

Cohen & Steers (CNS) 23 Jul 202020 Q2 Earnings call transcript