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Cohen & Steers' (CNS) June AUM Decreases on Higher Outflows

Zacks Equity Research

Cohen & Steers CNS has reported preliminary assets under management (AUM) of $62.4 billion as of Jun 30, 2019, down nearly 1% from the prior-month level of $62.9 billion. Market appreciation of $1.3 billion was more than offset by net outflows of $215 million, a conversion of $753 million from certain institutional accounts to model-based portfolios (excluded from AUM) and distributions of $867 million.

The company recorded total institutional accounts of $27.3 billion at the end of the month, down 4.1% on a sequential basis. This substantial decrease was mainly due to net outflows and the above-mentioned conversion. Of the total institutional accounts, advisory accounts were $14.1 billion as of Jun 30, while the remaining were sub-advisory accounts.

Cohen & Steers recorded $25.7 billion in open-end funds, up 2% from the $25.2 billion recorded a month ago. Also, close-end funds came in at $9.4 billion, up 1.9% from May 2019.

With operations across the globe, Cohen & Steers benefits largely from its well-diversified AUM. However, escalating expenses, mainly due to its continued expansion efforts, will keep hindering bottom-line growth.

Currently, Cohen & Steers sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of the company have surged 55% so far this year, outperforming the 20% rally registered by the industry.

Performance and Upcoming Release

Franklin Resources BEN has announced preliminary AUM by its subsidiaries of $715.2 billion for June 2019. Results display a 2.9% increase from the $695 billion recorded as of May 31, 2019. Strong market gains, partly offset by modest net outflows led to this upside. However, the figure edged down 1.2% year over year.

Invesco’s IVZ preliminary month-end AUM of $1,197.8 billion for June 2019 increased 3.3% from the prior month. This growth was primarily driven by favorable market returns, foreign exchange, non-management fee earning AUM inflows, and reinvested distributions, partly offset by net long-term outflows and lower money market AUM.

Among other asset managers, AllianceBernstein Holding L.P. AB is expected to report June AUM figures in the next few days.

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