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What changed in COHEN & STEERS, INC.'s 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of COHEN & STEERS, INC.'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+291 added−263 removedSource: 10-K (2024-02-23) vs 10-K (2023-02-24)

Top changes in COHEN & STEERS, INC.'s 2023 10-K

291 paragraphs added · 263 removed · 216 edited across 5 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeMidstream Energy and MLPs invests in a diversified portfolio of energy-related master limited partnerships (MLPs) and securities of companies that derive at least 50% of their revenues or operating income from the exploration, production, gathering, transportation, processing, storage, refining, distribution or marketing of natural gas, natural gas liquids (including propane), crude oil, refined petroleum products, coal or and other energy resources.
Biggest changeThese strategies have diversified and concentrated portfolios of U.S. and non-U.S. securities issued by infrastructure companies such as utilities, pipelines, toll roads, airports, railroads, marine ports and communications companies located in developed and emerging markets, energy related master limited partnerships and securities of companies that derive at least 50% of their revenues or operating income from the exploration, production, transportation, processing, storage, refining, distributing or marketing of various energy resources.
A consistent investment process underlies both our total return preferred securities strategy and our low duration preferred securities strategy, which seek income and capital preservation. Global/International Real Estate Securities includes a wide range of strategies distinguished by geography, concentration, risk profile and income objective, designed to provide allocation exposure to listed real estate globally.
A consistent investment process underlies both our total return preferred securities strategy and our low duration preferred securities strategy, both of which seek income and capital preservation. Global/International Real Estate Securities includes a wide range of strategies distinguished by geography, concentration, risk profile and income objective, designed to provide allocation exposure to listed real estate globally.
Our direct competitors in wealth management are other fund and exchange-traded-fund (ETF) sponsors, including large nationally recognized investment management firms that have more diverse product offerings and smaller boutique firms that specialize in particular asset classes. We also compete against managers that manage separate-account portfolios for high-net- 3 worth clients.
Our direct competitors in wealth management are other fund and exchange-traded-fund (ETF) sponsors, including large nationally recognized investment management firms that have more diverse product offerings and smaller boutique firms that specialize in particular asset classes. We also compete against managers that manage separate-account portfolios for high-net-worth clients.
Each strategy invests in a portfolio of common stocks and other securities issued by U.S. real estate companies, including real estate investment trusts (REITs) and similar REIT-like entities. These strategies are managed by our dedicated U.S. real estate securities investment team and draw on the broad expertise of our global real estate analysts and portfolio managers.
Each strategy invests in a portfolio of common stocks and other securities issued by U.S. real estate companies, including real estate investment trusts (REITs) and similar REIT-like entities. These strategies are managed by our dedicated U.S. real estate securities investment team and draw on the broad expertise of our real estate analysts and portfolio managers.
Our specialist teams are subject to multiple levels of oversight and support from the Chief Executive Officer and President, Chief Investment Officer, Chief 2 Operating Officer-Investments, Investment Risk Committee, Investment Operating Committee and Legal and Compliance Department. Some of our strategies may involve multiple asset classes and are overseen by our Asset Allocation Strategy Group and Chief Investment Officer.
Our specialist teams are subject to multiple levels of oversight and support from the Chief Executive Officer and President, Chief Investment Officer, Chief Operating Officer-Investments, Investment Risk Committee, Investment Operating 2 Committee and Legal and Compliance Department. Some of our strategies involve multiple asset classes and are overseen by our Asset Allocation Strategy Group and Chief Investment Officer.
Our diversity and inclusion strategy consist of four pillars: Education, Leadership, Recruitment and Engagement. • Education - We seek to build awareness and understanding to strengthen our culture of inclusion and support. • Leadership - We hold our leaders accountable for fostering an inclusive culture as they develop the next generation of leaders.
Our diversity and inclusion strategy consist of four pillars: Education, Leadership, Recruitment and Engagement. 5 • Education - We seek to build awareness and understanding to strengthen our culture of inclusion and support. • Leadership - We hold our leaders accountable for fostering an inclusive culture as they develop the next generation of leaders.
CSUK, our UK-based subsidiary, is a registered investment adviser with the SEC and the United Kingdom Financial Conduct Authority (FCA), is an approved investment manager with the CSSF and is registered as a third-country firm with the Belgium Financial Services Market Authority (FSMA).
CSUK, our UK-based subsidiary, is a registered investment adviser with the SEC and the United Kingdom Financial Conduct Authority (FCA), is an approved investment manager with the CSSF and CBI, and is registered as a third-country firm with the Belgium Financial Services Market Authority (FSMA).
Our Investment Strategies Each of our investment strategies is overseen by a specialist team, each of which is led by a portfolio manager or a team of portfolio managers, supported by dedicated analysts. These personnel are located in our New York, London and Hong Kong offices.
Our Investment Strategies Each of our investment strategies is overseen by a specialist team and led by a portfolio manager or a team of portfolio managers, supported by dedicated analysts. These personnel are located in our New York, London and Hong Kong offices.
CSAL is subject to the Securities and Futures Ordinance (SFO), which regulates, among other things, offers of investments to the public and the licensing of intermediaries.
CSAL is subject to the Securities and Futures Ordinance (SFO), which regulates, among other things, offers of investments to the public and the 4 licensing of intermediaries.
Advisory assets, which represent accounts for which we have been appointed as the investment manager, are included in our institutional account assets under management. As investment adviser, we are responsible to oversee certain daily activities and manage the assets in the account while adhering to the specified investment objectives.
Advisory assets, which represent accounts for which we have been appointed as the investment manager, are included in our institutional account assets under management. As investment adviser, we are responsible for overseeing certain daily activities and managing the assets in the account while adhering to the specified investment objectives.
We were recognized for the third consecutive year as a “Best Place to Work in Money Management” by Pensions & Investments (“P&I”), a global news source on money management. The award was part of P&I’s annual recognition program, which seeks to identify the top employers in the money management industry.
We were recognized for the fourth consecutive year as a “Best Place to Work in Money Management” by Pensions & Investments (P&I), a global news source on money management. The award was part of P&I’s annual recognition program, which seeks to identify the top employers in the money management industry.
Each strategy invests in a portfolio of common stocks and other securities issued by real estate companies, including REITs and similar REIT-like entities. These strategies draw on the expertise of our integrated global real estate securities investment team. Investment objectives include total return, capital appreciation and income.
Each strategy invests in a portfolio of common stocks and other securities issued by real estate companies, including REITs and similar REIT-like entities. These strategies draw on the expertise of our integrated global real estate securities investment team. Investment objectives include total return, capital appreciation and income. Private Real Estate Solutions includes strategies that invest primarily in real property investments.
Our wealth channel includes registered investment advisers, wirehouses, independent and regional broker dealers and bank trusts. Our institutional channel includes sovereign wealth funds, corporate plans, insurance companies and public funds, including defined benefit and defined contribution plans, as well as other financial institutions that access our investment management services directly or through consultants and other intermediaries.
Our institutional channel includes sovereign wealth funds, corporate plans, insurance companies and public funds, including defined benefit and defined contribution plans, as well as other financial institutions that access our investment management services directly or through consultants and other intermediaries.
Open-end Funds The U.S. and non-U.S. open-end funds that we sponsor, and for which we serve as investment adviser, offer and issue new shares continuously as assets are invested and redeem shares when assets are withdrawn.
Open-end Funds The U.S. and non-U.S. open-end funds that we sponsor, and for which we serve as investment adviser, offer and issue new shares continuously as investors subscribe and redeem shares when investors sell.
(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). CNS and its subsidiaries are collectively referred to as the Company, we, us or our. Our distribution network encompasses two major channels, wealth and institutional.
(CSCM), Cohen & Steers Securities, LLC (CSS), Cohen & Steers UK Limited (CSUK), Cohen & Steers Ireland Limited (CSIL), Cohen & Steers Asia Limited (CSAL), Cohen & Steers Japan Limited (CSJL) and Cohen & Steers Singapore Private Limited (CSSG). CNS and its subsidiaries are collectively referred to as the Company, we, us or our.
CSUK is subject to the Financial Services and Markets Act 2000 and subsequent amendments and related regulation, which regulates, among other things, certain liquidity and capital resources requirements. Such requirements may limit our ability to withdraw capital from CSUK.
CSUK also has exemptions from registration that allow it to provide investment management services to institutions in Canada. CSUK is subject to the Financial Services and Markets Act 2000 and subsequent amendments and related regulation, which regulates, among other things, certain liquidity and capital resources requirements. Such requirements may limit our ability to withdraw capital from CSUK.
Examples include ongoing volunteerism, green initiatives and a women’s exchange for sharing ideas and experiences. 5 We continue to make progress in advancing our firm's Diversity and Inclusion strategy. Our Culture Committee, our Women's Exchange and our newly launched Diversity Alliance promote cultural awareness and inclusion through dedicated forums in which employees are encouraged to share their perspectives and experiences.
We continue to make progress in advancing our firm's Diversity and Inclusion strategy. Our Culture Committee, our Women's Exchange and our Diversity Alliance promote cultural awareness and inclusion through dedicated forums in which employees are encouraged to share their perspectives and experiences.
Employees As of December 31, 2022, we had 388 full-time employees globally of which 37% were women. In addition, at the end of 2022, 31% of our U.S. employees were racially/ethnically diverse. During 2022, 48% of our firmwide new hires were women and 30% of our U.S. new hires were racially/ethnically diverse.
Employees As of December 31, 2023, we had 405 full-time employees globally of which 37% were women. In addition, at the end of 2023, 32% of our U.S. employees were people of color. During 2023, 42% of our firmwide new hires were women and 30% of our U.S. new hires were people of color.
Each team executes fundamentally driven, actively managed investment strategies and has a well-defined process that includes top-down macroeconomic and bottom-up fundamental research and portfolio management elements. Environmental, social and governance (ESG) principles are integrated into our investment process.
Each team executes fundamentally driven, actively managed investment strategies and has a well-defined process that includes top-down macroeconomic and bottom-up fundamental research and portfolio management elements. Environmental, social and governance (ESG) principles are integrated into our investment process. We believe companies that integrate ESG considerations into their strategic plans and operations can enhance long-term shareholder value and mitigate potential risks.
The investment objective is total return with a balance of capital appreciation and income. Global Natural Resource Equities invests in companies involved in the production, extraction, or processing of commodities and natural resources. Specifically, the strategy invests in energy producers, metals and mining companies as well as agriculture-based businesses. The investment objective is total return.
Global Natural Resource Equities invests in companies involved in the production, extraction, or processing of commodities and natural resources. Specifically, the strategy invests in energy producers, metals and mining companies as well as agriculture-based businesses. The investment objective is total return. In addition, we offer variations on these strategies that may combine multiple strategies in a single portfolio.
Competition We compete with a large number of global and U.S. investment managers, commercial banks, broker-dealers, insurance companies and other financial institutions. Many competing firms are parts of larger financial services companies and attract business through numerous channels, including retail banking, investment banking and underwriting contacts, insurance agencies and broker-dealers.
Many competing firms are parts of larger financial services companies and attract business through numerous channels, including retail banking, investment banking and underwriting contacts, insurance agencies and broker-dealers.
Item 1. Business Overview Cohen & Steers, founded in 1986, 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. Headquartered in New York City, with offices in London, Dublin, Hong Kong and Tokyo, we serve institutional and individual investors around the world.
Item 1. Business Overview Cohen & Steers, founded in 1986, is a global investment manager specializing in real assets and alternative income, including listed and private real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions.
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.
Headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and Singapore, we serve institutional and individual investors around the world. 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.
In addition, our subsidiaries that serve as investment adviser or subadvisor to U.S. registered funds are subject to the Investment Company Act, which imposes additional governance, compliance, reporting and fiduciary obligations. 4 CSJL, our Japan-based subsidiary, is a financial instruments operator (discretionary investment management and investment advisory and agency) registered with the Financial Services Agency of Japan (FSA) and the Kanto Local Finance Bureau (KLFB) and is subject to the Financial Instruments and Exchange Act.
CSJL, our Japan-based subsidiary, is a financial instruments operator (discretionary investment management and investment advisory and agency) registered with the Financial Services Agency of Japan (FSA) and the Kanto Local Finance Bureau (KLFB) and is subject to the Financial Instruments and Exchange Act.
In addition, we offer variations on these strategies that may combine multiple strategies in a single portfolio. Individual portfolios may be customized to comply with client-specific guidelines, benchmarks or risk profiles. Strategies offered in closed-end funds typically use leverage.
Individual portfolios may be customized to comply with client-specific guidelines, benchmarks or risk profiles. Strategies offered in closed-end funds typically use leverage. 3 Competition We compete with a large number of global and U.S. investment managers, commercial banks, broker-dealers, insurance companies and other financial institutions.
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We combine our internal research and company interactions with other industry data to form a comprehensive view that is expressed both explicitly and implicitly in our investment decisions. We believe companies that integrate ESG considerations into their strategic plans and operations can enhance long-term shareholder value and mitigate potential risks.
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Our distribution network encompasses two major channels, wealth and institutional. Our wealth channel includes registered investment advisers, wirehouses, independent and regional broker dealers and bank trusts.
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Global Listed Infrastructure invests in a diversified portfolio of U.S. and non-U.S. securities issued by infrastructure companies such as utilities, pipelines, toll roads, airports, railroads, marine ports and communications companies located in developed and emerging markets. The investment objective is total return with a balance of capital appreciation and income.
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Certain strategies invest primarily in high quality, income-focused, stabilized real estate assets primarily within the United States while others invest directly into real property investments of an opportunistic nature with the investment objective of capital appreciation achieved by value-added strategies including lease-up, redevelopment, and development among others and have a higher risk profile.
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Investment objectives include stable cash flow and capital appreciation, income and total return. To help our clients build better portfolios, we introduced Real Estate Advisory Solutions via three distinct solutions.
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Real Estate Advisory Services and the Real Assets Compass are solutions designed to help clients understand the advantages of adding listed and private real estate to their asset allocations and how to optimize those allocations. Through the Real Assets Institute we provide foundational education on the benefits of real assets through thought leadership, online educational forums, webcasts and exclusive events.
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Global Listed Infrastructure includes strategies designed to provide access to infrastructure assets.
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Investment objectives include total return with a balance of capital appreciation and income.
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In addition, our subsidiaries that serve as investment adviser or subadvisor to U.S. registered funds are subject to the Investment Company Act, which imposes additional governance, compliance, reporting and fiduciary obligations.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe Federal Reserve has identified benchmark rates based on the Secured Overnight Financing Rate, or SOFR, a new index calculated by short-term repurchase agreements backed by Treasury securities, to replace LIBOR in certain financial contracts after June 30, 2023.
Biggest changeIn addition, until its discontinuation in 2023, the London Interbank Offered Rate (LIBOR) was frequently used as a reference rate for various financial instruments, products and contracts globally to determine payment obligations, financing terms, hedging strategies and investment value. The Federal Reserve has identified the Secured Overnight Financing Rate (SOFR), an index calculated by short-term repurchase agreements, backed by U.S.
Our or our third-party service providers’ systems may also be affected by, or fail as a result of, catastrophic events, such as fires, floods, hurricanes and tornadoes, acts of terrorism or power disruptions. Like other companies, we have experienced and will likely continue to experience cyber incidents, security threats and attacks.
Our or our third-party service providers’ systems may also be affected by, or fail as a result of, catastrophic events, such as fires, floods, hurricanes, tornadoes, acts of terrorism or power disruptions. Like other companies, we have experienced and will likely continue to experience cyber incidents, security threats and attacks.
Claims against us may arise in the ordinary course of business, including employment-related claims, and from time to time, we have and may continue to receive subpoenas or other requests for information or similar correspondence from various U.S. and non-U.S. governmental or regulatory authorities and third parties in connection with certain industry-wide, company-specific or other investigations or proceedings.
Claims against us may arise in the ordinary course of business, including employment-related claims, and from time to time, we have and may continue to receive subpoenas or other requests for information or similar correspondence from various U.S. and non-U.S. governmental or regulatory authorities and third parties in connection with certain industry-wide, company-specific or other investigations or 17 proceedings.
Further, new regulations or interpretations of existing laws have resulted in, and may continue to result in, enhanced disclosure obligations, including with respect to cybersecurity, insider trading and climate change, sustainability risks, or other ESG matters, which could negatively affect us or materially increase our regulatory burden.
Further, 16 new regulations or interpretations of existing laws have resulted in, and may continue to result in, enhanced disclosure obligations, including with respect to cybersecurity, insider trading and climate change, sustainability risks or other ESG matters, which could negatively affect us or materially increase our regulatory burden.
To the extent current or potential clients decide to invest in products sponsored by our competitors, the sales of our products as well as our market share, revenue and net income could decline. 9 The inability to access clients through third-party intermediaries could have a material adverse effect on our business.
To the extent current or potential clients decide to invest in products sponsored by our competitors, the sales of our products as well as our market share, revenue and net income could decline. The inability to access clients through third-party intermediaries could have a material adverse effect on our business.
We maintain a system of internal controls for us and certain of our investment vehicles designed to provide reasonable assurance that fraudulent activity, including misappropriation of our assets, fraudulent financial reporting and unauthorized access to sensitive or confidential information is either prevented or timely detected and remediated.
We maintain a system of internal controls for us and certain of our investment vehicles designed to provide reasonable assurance that malicious or fraudulent activity, including misappropriation of our assets, fraudulent financial reporting and unauthorized access to sensitive or confidential information is either prevented or timely detected and remediated.
As a result, we cannot assure you that we will pay dividends at any rate or at all. 14 A sale of a substantial number of shares of our common stock may adversely affect the market price of our common stock, and the issuance of additional shares will dilute your percentage ownership in the Company.
As a result, we cannot assure you that we will pay dividends at any rate or at all. A sale of a substantial number of shares of our common stock may adversely affect the market price of our common stock, and the issuance of additional shares will dilute your percentage ownership in the Company.
The breach of any covenant and inability to meet any applicable qualifications, thresholds and exceptions or negotiate any waiver or amendment could result in a default under the Credit Agreement and/or amounts borrowed, together with accrued interest and other fees, could become immediately due and payable.
Our breach of any covenant and inability to meet any applicable qualifications, thresholds and exceptions or negotiate any waiver or amendment could result in a default under the Credit Agreement and/or amounts borrowed, together with accrued interest and other fees, could become immediately due and payable.
The investment management industry is highly competitive, and investors are increasingly fee sensitive. We compete against a large number of investment products offered by other investment management companies, investment dealers, banks and insurance companies, and many institutions we compete with have greater financial resources than us.
The investment management industry is highly competitive, and investors are increasingly fee sensitive. We compete against a large number of investment products offered by other investment management companies, investment dealers, banks and insurance companies, and many institutions we compete with have greater infrastructure and financial resources than us.
In addition, our increased use of mobile and cloud technologies could increase these and other operational risks, and any failure by mobile or cloud technology service providers to adequately safeguard their systems could disrupt our operations and result in misappropriation, corruption or loss of confidential or proprietary information.
In addition, our increased use of mobile and cloud computing technologies could increase these and other operational risks, and any failure by mobile or cloud technology service providers to adequately safeguard their systems could disrupt our operations and result in misappropriation, corruption or loss of confidential or proprietary information.
In addition, real estate values may be adversely affected by new businesses and approaches in the real estate market and sectors in which we invest that cause disruptions in the industry with technological and other innovations, such as impacts to the value of hospitality properties due to competition from the non-traditional hospitality sector (such as short-term rental services) and office properties due to competition from shared office spaces (including co-working environments).
Real estate values may also be adversely affected by new businesses and approaches in the real estate market and sectors in which we invest that cause disruptions in the industry with technological and other innovations, such as impacts to the value of hospitality properties due to competition from the non-traditional hospitality sector (such as short-term rental services) and office properties due to competition from shared office spaces (including co-working environments).
However, we cannot guarantee that our insurance will cover all liabilities and losses to which we may be exposed, 16 or that our insurance policies will continue to be available at acceptable terms and fees.
However, we cannot guarantee that our insurance will cover all liabilities and losses to which we may be exposed, or that our insurance policies will continue to be available at acceptable terms and fees.
In May 2021, we filed a Registration Statement on Form S-3 covering (i) the resale of up to an aggregate of 21,660,862 shares owned or controlled by our Executive Chairman and our Board Chairman and certain other persons and (ii) the offer and sale of an indeterminate number of shares by us to the public.
In May 2021, we filed a Registration Statement on Form S-3 (the “2021 Registration Statement”) covering (i) the resale of up to an aggregate of 21,660,862 shares owned or controlled by our Executive Chairman and our Board Chairman and certain other persons and (ii) the offer and sale of an indeterminate number of shares by us to the public.
We could experience loss of client relationships and other harm to our business if our reputation is impaired. Our reputation is important to the success of our business.
We could experience loss of client relationships and other harm to our business if our reputation is impaired. 14 Our reputation is important to the success of our business.
Outstanding indebtedness would (i) decrease our ability to obtain additional financing for other purposes, (ii) limit our flexibility to make acquisitions, (iii) increase our cash requirements to support the payment of interest and reduce the amount of cash otherwise available for other purposes, (iv) limit our flexibility in planning for, or reacting to, changes in our business and our industry, (v) increase our exposure to the risk of increased interest rates where our borrowings are at variable rates of interest, (vi) make it more difficult for us to satisfy our obligations to our creditors, resulting in possible defaults on, and acceleration of, such indebtedness and (vii) increase our vulnerability to adverse changes in general economic and industry conditions.
Outstanding indebtedness may, among other things, (i) decrease our ability to obtain additional financing for other purposes, (ii) limit our flexibility to make acquisitions, (iii) increase our cash requirements to support the payment of interest and reduce the amount of cash otherwise available for other purposes, (iv) limit our flexibility in planning for, or reacting to, changes in our business and our industry, (v) increase our exposure to the risk of increased interest rates where our borrowings are at variable rates of interest, (vi) make it more difficult for us to satisfy our obligations to our creditors, resulting in possible defaults on, and acceleration of, such indebtedness and (vii) increase our vulnerability to adverse changes in general economic and industry conditions.
As part of the implementation of our strategy, we have emphasized the development of broader real assets strategies, such as the continued development of our private real estate investment strategy. We also continue to prioritize the expansion of our geographical presence and capabilities as well as product and service offerings outside the U.S.
As part of the implementation of our strategy, we have emphasized the development of broader real assets strategies, such as our private real estate investment strategy. We also continue to prioritize the expansion of our geographical presence and capabilities as well as product and service offerings outside the 11 U.S.
Changes in distribution rates could decrease investor demand for these products, resulting in outflows of assets subadvised by us which would negatively impact our revenue and adversely affect our financial condition. Seed investments made to support the launch of new strategies and products may expose us to potential losses on invested capital.
Reductions in distribution rates could decrease investor demand for these products, resulting in outflows of assets subadvised by us which would negatively impact our revenue and adversely affect our financial condition. 8 Seed investments made to support the launch of new strategies and products may expose us to potential losses on invested capital.
Tax authorities may disagree with certain positions we have taken, which may result in the assessment of additional taxes and could have a material effect on our financial condition. 17
Tax authorities may disagree with certain positions we have taken, which may result in the assessment of additional taxes and could have a material effect on our financial condition. 18
Our institutional clients, and firms with which we have strategic alliances, may terminate their relationship with us, reduce the amount of assets we manage, shift their assets to other types of accounts with different fee structures or renegotiate the fees we charge them for any number of reasons, including investment performance, redemptions by beneficial owners of funds we manage or subadvise, actual or perceived competition between the accounts we subadvise and our proprietary 11 investment products, changes in the key members of an investment team, changes in prevailing interest rates and financial market performance.
Our institutional clients, and firms with which we have strategic alliances, may terminate their relationship with us, reduce the amount of assets we manage, shift their assets to other types of accounts with different fee structures or renegotiate the fees we charge them for any number of reasons and with little advance notice, including investment performance, redemptions by beneficial owners of funds we manage or subadvise, actual or perceived competition between the accounts we subadvise and our proprietary investment products, changes in the key members of an investment team, changes in investment strategies, changes in prevailing interest rates and financial market performance.
Limitations on our ability to utilize leverage in the closed-end funds we sponsor could reduce our assets under management and revenue. Certain of the closed-end funds sponsored by us utilize leverage in the form of bank financing, which in the aggregate amounted to approximately $3.4 billion as of December 31, 2022.
Limitations on our ability to utilize leverage in the closed-end funds we sponsor could reduce our assets under management and revenue. Certain of the closed-end funds sponsored by us utilize leverage in the form of bank financing, which in the aggregate amounted to approximately $3.3 billion as of December 31, 2023.
A decline in the performance or value of preferred securities, or diminishment in the attractiveness or availability of preferred securities investments, would have an adverse effect on the assets we manage, limit our ability to increase and invest assets in these strategies and reduce the fees we earn and our revenue.
A decline in the performance or value of preferred securities or similar investments, including CoCos, or diminishment in the attractiveness or availability of preferred securities or similar investments, would have an adverse effect on the assets we manage, limit our ability to increase and invest assets in these strategies and reduce the fees we earn and our revenue.
Although we have a long history of paying cash dividends, there is no guarantee or requirement that we pay cash dividends in the future. Our dividend policy may change at any time without notice to our stockholders.
We may change our dividend policy at any time and there is no guarantee that we will pay dividends in the future. 15 Although we have a long history of paying cash dividends, there is no guarantee or requirement that we pay cash dividends in the future. Our dividend policy may change at any time without notice to our stockholders.
We have backup systems and contingency plans, but we cannot ensure that they will be adequate under all circumstances or that material interruptions and disruptions will not occur. In addition, we rely to varying degrees on outside vendors for disaster recovery support, and we cannot guarantee that these vendors will be able to perform in an adequate and timely manner.
We cannot ensure that our backup systems and contingency plans will be adequate under all circumstances or that material interruptions and disruptions will not occur. In addition, we rely to varying degrees on outside vendors for disaster recovery support, and we cannot guarantee that these vendors will be able to perform in an adequate and timely manner.
Risks Related to our Common Stock A significant portion of our common stock is owned or controlled by our Executive Chairman and our Board Chairman and their respective family members, which may limit the ability of other stockholders to influence the affairs of the Company. Robert H.
Risks Related to our Common Stock A significant portion of our common stock is owned or controlled by our Executive Chairman and our Board Chairman and their respective family members, which may limit the ability of other stockholders to influence the affairs of the Company. As of December 31, 2023, Robert H.
Equity securities may decline in value as a result of many global, regional or issuer-specific factors, including changes in interest rates, inflation, an issuer’s actual or perceived financial condition and growth prospects, investor perception of an industry or sector, changes in currency exchange rates, changes in regulations and geopolitical and economic risks and events.
Equity securities may decline in value as a result of many global, regional or issuer-specific economic or market factors, including changes in interest rates, inflation, an issuer’s actual or perceived financial condition and growth prospects, investor perception of an industry, geography or sector, changes in currency exchange rates and changes in regulations.
Investor demand for the products we subadvise for this client can be affected by, among other things, changes in the distributions paid by those products, the strength of the Japanese yen compared to the currencies in which the assets held in those products are denominated, market or economic events and conditions in Japan that may diminish the relative attractiveness of or contribute to investor redemptions in U.S. real estate strategies, the regulatory environment for the Japanese mutual fund market and disruptions in the marketing or distribution of our products caused by the COVID-19 pandemic or similar conditions.
Investor demand for the products we subadvise for this client can be affected by, among other things, actual or anticipated changes in the distributions paid by those products, the strength of the Japanese yen compared to the currencies in which the assets held in those products are denominated, market or economic events and conditions in Japan that may diminish the relative attractiveness of or contribute to investor redemptions in U.S. real estate strategies, the regulatory environment for the Japanese mutual fund market and disruptions in the marketing or distribution of our products caused by global or regional events.
Moreover, ESG topics and activities have been the subject of increased focus by the mainstream media, as well as certain investors and regulators in the asset management industry, and any inability to meet applicable requirements or expectations may adversely impact our reputation and business.
Moreover, environmental, social and governance (“ESG”) topics and activities have been the subject of increased focus by the mainstream media, as well as certain investors and regulators in the asset management industry, and any inability to meet applicable requirements or expectations may adversely impact our reputation and business.
Income and real estate values may be adversely affected by, among other things, unfavorable changes to tax laws and other laws and regulations applicable to real estate securities, global or regional events and disruptions that directly impact the real estate sector such as the COVID-19 pandemic, the cost of compliance with applicable laws and regulations, sensitivity to certain economic factors such as interest rate changes and market volatility or economic recession, the availability of financing, the creditworthiness of tenants, general and local economic conditions, the limited ability of issuers of real estate securities to vary their portfolios promptly in response to changes in market conditions and other factors that are beyond our control.
Income and real estate values may be adversely affected by, among other things, unfavorable changes to tax laws and other laws and regulations applicable to real estate securities, global or regional events and disruptions that directly impact the real estate sector, the cost of compliance with applicable laws and regulations, sensitivity to certain economic factors such as interest rate changes and market volatility or economic recession, the availability and terms of financing, the creditworthiness of tenants, the volume and market terms of commercial real estate purchase and sale transactions, general and local economic conditions, the limited ability of issuers of real estate securities to vary their portfolios promptly in response to changes in market conditions and other factors that are beyond our control.
Our ability to increase our ownership, or maintain existing levels of ownership, may also be constrained by REIT ownership limits, which limit the percentage ownership of a REIT’s outstanding capital stock, common stock, and/or preferred stock.
Our ability to increase our ownership, or maintain existing levels of ownership, in securities issued by REITs may also be constrained by REIT ownership limits, which limit the percentage ownership of a REIT’s outstanding capital stock, common stock and/or preferred stock.
A significant portion of our revenue for 2022 was derived from a single institutional client. As of December 31, 2022, our largest institutional client, Daiwa Asset Management, which held most of its assets in U.S. real estate strategies subadvised by us in Japan, represented approximately 21.0% of our institutional account revenue and approximately 5.0% of total revenue for 2022.
A significant portion of our revenue for 2023 was derived from a single institutional client. As of December 31, 2023, our largest institutional client, Daiwa Asset Management, which held most of its assets in U.S. real estate strategies subadvised by us in Japan, represented approximately 20.5% of our institutional account revenue and approximately 5.2% of total revenue for 2023.
Although we take precautions to password protect and encrypt our employees’ mobile electronic devices, if such devices are stolen, misplaced or left unattended, they may become vulnerable to hacking or other unauthorized use, creating a possible security risk.
Although we take precautions to password-protect and encrypt all authorized electronic devices, if such devices are stolen, misplaced or left unattended, they may become vulnerable to hacking or other unauthorized use, creating a possible security risk.
In connection with our initial public offering in 2004, we entered into a Registration Rights Agreement with our Executive Chairman, Robert H.
In connection with our initial public offering in 2004, we entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with our Executive Chairman, Robert H.
Allocations of capital to seed investments in new strategies and products reduce capital available for cash dividends, payment of interest on and repayment of outstanding indebtedness, if any, and other corporate purposes and expose us to liquidity constraints and potential capital losses, against which we may not hedge entirely.
Allocations of capital to seed investments in new strategies and products reduce capital available for cash dividends, payment of interest on and repayment of outstanding indebtedness, if any, and other corporate purposes and expose us to liquidity constraints and potential capital losses, against which we may not hedge entirely or effectively to mitigate risk in all market conditions.
This has imposed a further compliance burden on the company. We expect other global and jurisdiction-specific ESG and climate-related regulations to impose a further compliance burden causing us to experience higher costs in implementation and ongoing adherence in the near future, including expected SEC regulations in the US. There has been an increase in data and privacy regulations globally.
We expect other global and jurisdiction-specific ESG and climate-related regulations and legislation to impose a further compliance burden causing us to experience higher costs in implementation and ongoing adherence in the near future, including expected SEC regulations in the U.S. There has been an increase in data and privacy regulations globally.
The upfront and ongoing costs of adequately supporting our growth and initiatives will have an effect on our operating margin and other financial results. 10 Changes in market and economic conditions could reduce our assets under management and adversely impact our revenue.
The upfront and ongoing costs of adequately supporting our growth and initiatives will have an effect on our operating margin and other financial results. Changes in market and economic conditions, including elevated interest rates, could reduce our assets under management and adversely impact our revenue and profitability.
Further, our investments in real estate securities and real property may be exposed to new or increased risks and liabilities that could reduce our assets under management, revenue and earnings, including risks associated with global climate change, such as increased frequency and/or intensity of adverse weather and natural disasters, as well as risks associated with the emergence of a “remote-work” environment in certain geographies and industries and workforce reductions in certain market segments, which may negatively impact office demand, rental rates and occupancy levels.
Further, our investments in real estate securities and real property may be exposed to new or increased risks and liabilities that could have a negative impact on our investment strategies and reduce our assets under management, revenue and earnings, including risks associated with global climate change, such as increased frequency and/or intensity of adverse weather and natural disasters, as well as risks associated with continued “remote-work” arrangements in certain geographies and industries and workforce reductions in certain market segments, which may negatively impact office demand in the commercial real estate sector, rental rates and occupancy levels.
We compete with these firms on the basis of investment performance, diversity of products, distribution capability, scope and quality of services, reputation and the ability to develop new investment strategies and products to meet the changing needs of investors and generate strong returns.
We compete with these firms on the basis of investment performance, diversity of products, investments in available assets, distribution capability, scope and quality of services, reputation and the ability to develop and successfully launch new investment strategies and products to meet the changing needs of investors and generate strong returns.
Our growth could be adversely affected if we are unable to manage the costs or realize the anticipated benefits associated with the expansion of our business. Our growth strategy continues to involve expanding our business and diversifying our investment management business beyond our existing core products and services.
Our growth could be adversely affected if we are unable to manage the costs or realize the anticipated benefits associated with the expansion of our business. Our growth strategy includes the expansion of our business and diversification of our investment management business beyond our existing core products and services.
Our operating expenses include payment for research and eligible services for these accounts. Depending on the evolution of market practices and regulatory developments, we may elect to pay for research and expenses globally, subject to applicable SEC regulations, which would further increase our operating expenses. We face substantial competition in all aspects of our business.
Our operating expenses include payment for research and eligible services for these accounts. Depending on the evolution of market practices and regulatory developments, we may elect to pay for research and expenses globally, subject to applicable SEC regulations, which would further increase our operating expenses.
As a result, our fixed costs and other expenses have increased to support the development and launch of new strategies, investment vehicles and products, to expand the availability and marketability of our existing strategies and products, to grow our potential client base and to enhance our infrastructure, including additional office space, technology, operations, and personnel.
Significant fixed costs and other expenses have been incurred to support the development and launch of new strategies, investment vehicles and products, to expand the availability and marketability of our existing strategies and products, to grow our potential client base and to enhance our infrastructure, including additional office space, technology, operations and personnel.
Our ability to make payments of 8 principal and interest on indebtedness could depend upon future performance, which is subject to general economic conditions and financial, business and other factors that may be beyond our control.
Our ability to repay principal and interest on indebtedness could depend upon our future performance, which is subject to general economic conditions and financial, business and other factors and risks that may be beyond our control.
Our actively managed investment strategies compete not only against other active strategies but also against similarly positioned passive strategies. The continuing shift in market demand toward index funds and other passive strategies, and the growing availability of investment options to meet these demands, reduces opportunities for active managers and may accelerate fee compression.
Our actively managed investment strategies compete not only against other active strategies but also against similarly positioned passive strategies. Market demand for index funds and other passive strategies, and the broad availability of investment options to meet these demands, reduces opportunities for active managers and may contribute to fee compression.
Preferred securities investments are subject to varying degrees of market, contractual, financial, regulatory and other risks that could affect investment performance, returns and attractiveness, including risks related to actual or anticipated inflationary trends, interest rates, counterparty credit, income and distributions and applicable tax treatment.
Preferred securities investments are subject to varying degrees of market, contractual, financial, regulatory, litigation and other risks that could affect investment performance, returns and attractiveness, including risks related to actual or anticipated inflationary trends, interest rates, comparative returns on senior credit or “risk-free” debt instruments, counterparty credit, income and distributions, regulatory intervention and treatment, and applicable tax treatment.
Our current Executive Chairman and our Board Chairman, together with certain of their respective family members, held 11,750,059 shares and 9,353,469 shares, respectively, of our common stock as of December 31, 2022. Any of such persons may sell shares of our common stock, subject to any restrictions imposed by U.S. federal securities laws on sales by affiliates.
Our current Executive Chairman and our Board Chairman, together with certain of their respective family members, held 11,781,717 shares and 9,228,258 shares, respectively, of our common stock as of December 31, 2023. Any of such persons may sell shares of our common stock, subject to any restrictions imposed by U.S. federal securities laws on sales by affiliates.
However, such insurance may only partially reimburse us for our losses, if at 12 all, and if a claim is successful and exceeds or is not covered by our insurance policy, we may be required to pay a substantial amount to satisfy such successful claim.
However, such insurance may only partially reimburse us for our losses, if at 10 all, and if a claim is successful and exceeds or is not covered by our insurance policy, we may be required to pay a substantial amount to satisfy such successful claim. We face substantial competition in all aspects of our business.
Changes in market and global economic conditions, including volatile equity markets, slowing growth and rising inflation or interest rates and client and governmental policy responses thereto, could adversely affect the value of our assets under management, which would reduce the fees we earn and our revenue.
Changes in market and global economic conditions, including elevated interest rates, volatile equity markets, slowing growth and rising inflation as well as client and governmental policy responses thereto, as well as geopolitical risks such as regional armed conflicts, could adversely affect the value of our assets under management, which would reduce the fees we earn and our revenue.
In the case of new strategy and product launches, our lack of available long-term records of prior investment performance, or investment “track records,” may put us at an initial competitive disadvantage.
In the case of new strategy and product launches, our lack of available long-term records of prior investment performance, or investment “track records,” may put us at a competitive disadvantage until such records are established.
Expenses related to infrastructure and technology enhancements will include costs associated with the planned December 2023 relocation of our New York headquarters. Developing and implementing new investment strategies and products may require significant upfront management time and attention, the hiring of highly-compensated personnel and ongoing marketing and other support.
Expenses related to infrastructure and technology enhancements include costs associated with the relocation of our New York headquarters and the implementation of a new trade order management system. Developing and implementing new investment strategies and products may require significant upfront management time and attention, the hiring and retention of highly-compensated personnel and ongoing marketing and other support.
As of December 31, 2022, approximately 62.1% of the assets we managed was concentrated in real estate securities strategies, including approximately 22.2% in the aggregate in Cohen & Steers Real Estate Securities Fund, Inc., Cohen & Steers Realty Shares, Inc. and Cohen & Steers Institutional Realty Shares, Inc.
As of December 31, 2023, approximately 65.4% of the assets we managed was concentrated in real estate securities strategies, including approximately 23.2% in the aggregate in Cohen & Steers Real Estate Securities Fund, Inc., Cohen & Steers Realty Shares, Inc. and Cohen & Steers Institutional Realty Shares, Inc.
We entered into a credit agreement on January 20, 2023 (the “Credit Agreement”), providing for a $100 million senior unsecured revolving credit facility maturing on January 20, 2026.
We are party to a credit agreement (the “Credit Agreement”) providing for a $100 million senior unsecured revolving credit facility maturing on January 20, 2026.
As of December 31, 2022, approximately 24.6% of the institutional account assets we managed, and approximately 9.9% of our total assets under management, were derived from this client.
As of December 31, 2023, approximately 24.8% of the institutional account assets we managed, and approximately 10.5% of our total assets under management, were derived from this client.
There can be no assurance that we will be able to retain access to these channels. Loss of any of these third-party distribution channels, or changes to their structure and terms, or any reduction in our ability to access clients and investors through existing and new distribution channels, could adversely affect our business.
Loss of any of these third-party distribution channels, or changes to their structure and terms, or any reduction in our ability to access clients and investors through existing and new distribution channels, could adversely affect our business.
There remains uncertainty around the post-Brexit regulatory environment as the U.K. continues to establish independent regulations for the U.K. CSUK’s ability to market and provide its services or serve as a distributor of financial products within the EU could be restricted temporarily or in the long term as a result of Brexit and a divergence from the EU regulatory regime.
CSUK’s ability to market and provide its services or serve as a distributor of financial products within the EU could be restricted temporarily or in the long term as a result of Brexit and a divergence from the EU regulatory regime.
As of December 31, 2022, approximately 24.6% of our total assets under management was concentrated in preferred securities strategies, including approximately 10.4% in the Cohen & Steers Preferred Securities and Income Fund.
As of December 31, 2023, approximately 21.8% of our total assets under management was concentrated in preferred securities strategies, including approximately 9.1% in the Cohen & Steers Preferred Securities and Income Fund.
REIT charters generally grant a REIT the right to unilaterally reduce any ownership amount that it deems to be in violation of its ownership limits. Such charters do not typically provide for the elimination of such right even in the event a REIT has previously provided waivers from such limits or acknowledgements that ownership levels do not violate such limits.
Such charters do not typically provide for the elimination of such right even in the event a REIT has previously provided waivers from such limits or acknowledgements that ownership 7 levels do not violate such limits.
In a declining market or in conditions of poor relative or absolute performance, the pace of redemptions and withdrawals and the loss of institutional and individual separate account clients could accelerate. The occurrence of any of these events could have a material adverse effect on our revenue.
In a declining or illiquid market or in conditions of poor relative or absolute performance, the pace of redemptions and withdrawals and the loss of institutional and individual separate account clients could accelerate.
See “The discontinuation of LIBOR and transition to alternative reference rates may adversely affect the value of certain LIBOR-based assets we manage and expose us to additional risks.” Further, to the extent limitations may arise in the overall supply of preferred securities investments at attractive prices or at all, whether due to performance concerns about the asset class, shifts in market or economic trends or investor preferences, redemptions or decreased volume of new issuances, our ability to deploy our available investment capacity may become constrained.
Further, to the extent limitations may arise in the overall supply of preferred securities or similar investments at attractive prices or at all, whether due to performance concerns about the asset class, shifts in market or economic trends or investor preferences, redemptions or decreased volume of new issuances, our ability to deploy our available investment capacity may become constrained.
Steers, our current Executive Chairman, and a member of his family held approximately 24.1% of our common stock as of December 31, 2022. In addition, Martin Cohen, our current Chairman of the board of directors (our “Board Chairman”), and a member of his family held approximately 19.2% of our common stock as of December 31, 2022.
Steers, our current Executive Chairman, and a member of his family held approximately 24.0% of our common stock and Martin Cohen, our current Chairman of the board of directors (our “Board Chairman”), and a member of his family held approximately 18.8% of our common stock.
The failure of a key vendor to fulfill its obligations to the Company could have a material adverse effect on the Company and its products. We depend on a number of key vendors for various fund administration, fund and corporate accounting, custody and transfer agent services, information technology services, market data and other operational needs.
We depend on a number of key vendors for various fund administration, fund and corporate accounting, custody and transfer agent services, information technology services, market data and other operational needs.
Further, advances in technology and digital wealth and distribution tools and increasing client interest in interacting digitally with their investment portfolios may require us to adapt our strategy and business to address these trends and pressures, and our competitive position may weaken if we are unable to meet client needs satisfactorily.
Further, advances in technology, including through artificial intelligence capabilities, automation and digital wealth and distribution tools, as well as growing client interest for enhanced digital interaction with their investment portfolios, may require us to adapt our strategy, business and operations to address these trends and pressures. Our competitive position may weaken if we are unable to meet these client priorities.
A sustained decline in the performance of or demand for the portfolios and strategies we manage as a result of negative market, financial and economic conditions caused by pandemic conditions, could adversely impact our assets under management and the fees we earn.
A sustained decline in the performance of or demand for the portfolios and strategies we manage as a result of negative market, financial and economic conditions caused by catastrophic events could adversely impact our assets under management and the fees we earn, and these conditions could lead us to experience operational issues and interruptions, require us to incur significant additional costs and negatively impact our business.
In order to maintain our current fee structure in a competitive environment, we must be able to provide clients with investment returns and service commensurate with the level of fees we charge.
In the event that competitors charge lower fees for substantially similar products, we may be forced to compete on the basis of price to attract and retain clients. In order to maintain our current fee structure in a competitive environment, we must be able to provide clients with investment returns and service commensurate with the level of fees we charge.
Our reputation may be harmed by a number of factors, including, but not limited to, poor investment performance, operational failures, cyber incidents, negative publicity, claims or disputes arising from our management of pandemic conditions, the dissemination by current or former clients of unfavorable opinions about our services, changes in key members of an investment team or in our senior management and the imposition of legal or regulatory sanctions or penalties in connection with our business activities. 13 In addition, we must routinely address and manage actual or potential conflicts of interest, as well as the perception of conflicts of interest, among our disparate business lines and/or among us and our clients, employees and/or affiliates, investment vehicles or joint venture partners.
Our reputation may be harmed by a number of factors, including, but not limited to, poor investment performance, operational failures, cyber incidents, negative publicity, the dissemination by current or former clients of unfavorable opinions about our services, changes in key members of an investment team or in our senior management and the imposition of legal or regulatory sanctions or penalties in connection with our business activities.
Capital markets, as well as the real estate and real property markets, experienced significant volatility and dislocations related to the COVID-19 pandemic.
For example, as a result of the outbreak of COVID-19, capital markets, as well as the real estate and real property markets, experienced significant volatility and dislocations.
We could incur financial losses, reputational harm and regulatory penalties if we fail to implement effective information security policies and procedures. Our business is dependent on the effectiveness of our information and cyber security policies and procedures to protect our network and telecommunications systems and the data that reside in or are transmitted through such systems.
Our business is dependent on the effectiveness of our information and cybersecurity policies and procedures to protect our network and telecommunications systems and the data that reside in or are transmitted through such systems.
Critical operations that are geographically concentrated in New York include portfolio management, trading operations, information technology, investment administration and portfolio accounting services for our products as well as corporate accounting systems.
Significant portions of our business operations and those of our critical third-party service providers are concentrated in a few geographic areas, including New York and New Jersey. Critical operations that are geographically concentrated include portfolio management, trading operations, information technology, data centers, investment administration and portfolio accounting services for our products as well as corporate accounting systems.
In addition, we do not carry “key person” or similar insurance that would provide us with proceeds in the event of the death or disability of any of our senior executives. Regulations restricting the use of commission credits to pay for research have increased, and may continue to increase, our operating expenses.
In addition, we do not carry “key person” or similar insurance that would provide us with proceeds in the event of the death or disability of any of our senior executives.
The U.K.’s exit from the EU on January 31, 2020 (referred to as Brexit) and end of the transition period on December 31, 2020, may continue to disrupt our business operations and impact our reported financial results as well as the liquidity and value of our investments.
The U.K.’s exit from the EU in 2020 (referred to as Brexit) may continue to disrupt our business operations and impact our reported financial results as well as the liquidity and value of our investments. There remains uncertainty around the post-Brexit regulatory environment as the U.K. continues to establish independent regulations for the U.K.
To the extent these ownership restrictions prevent us from acquiring new or additional real estate securities, or force us to reduce existing ownership amounts, our revenue and our ability to invest available assets and increase the assets we manage could be negatively affected. 7 A decline in the absolute or relative performance or value of preferred securities, or the attractiveness of preferred securities portfolios or investment strategies, would have an adverse effect on the assets we manage and our revenue.
To the extent these ownership restrictions prevent us from acquiring new or additional real estate securities, or force us to reduce existing ownership amounts in general or at prices that are not attractive, our revenue and our ability to invest available assets and increase the assets we manage could be negatively affected.
Regulators in the non-U.S. jurisdictions in which we operate could change their laws or regulations, or their interpretation or enforcement of existing laws and regulations, in a manner that might restrict or otherwise impede our ability to operate in their respective markets. 15 In Europe, rules and regulations under MiFID II and MiFIR, along with substantially similar national rules of the U.K. and implementing rules and regulations, have had, and will continue to have, direct and indirect effects on our operations in Europe, including increased costs for investment research and increased compliance, disclosure, reporting and other obligations.
In Europe, rules and regulations under Undertakings for the Collective Investment in Transferable Securities (UCITS) regulatory framework, MiFID II and MiFIR, along with substantially similar national rules of the U.K. and implementing rules and regulations, have had, and will continue to have, direct and indirect effects on our operations in Europe, including increased costs for investment research and increased compliance, disclosure, reporting and other obligations.
SFDR will require all covered firms and funds to disclose how financial products integrate sustainability risks in the investment process, including whether they consider adverse sustainability impacts, and, for those products promoting sustainable objectives, the provision of sustainability-related information.
For example, compliance with the EU’s Sustainable Finance Disclosure Regulation (SFDR) imposes mandatory ESG disclosure obligations on EU asset managers, funds and other financial markets participants and requires all covered firms and funds, such as the Cohen & Steers SICAV and CSIL, to disclose how financial products integrate sustainability risks in the investment process, including whether they consider adverse sustainability impacts and, for those products promoting sustainable objectives, the provision of sustainability-related information.
In addition, our separate account business, subadvisory, and model delivery services depend in part on recommendations by consultants, financial planners and other professional advisors, as well as our existing clients.
These organizations may also require that we or our products have established, long-term investment “track records” as a condition to placement on their platforms. In addition, our separate account business, subadvisory and model delivery services depend in part on recommendations by consultants, financial planners and other professional advisors, as well as our existing clients.
The nature of these threats is constantly evolving and becoming increasingly sophisticated, including the increasing use of “ransomware” and phishing attacks, and recent highly publicized security breaches have exposed failures to keep pace with the threats posed by cyber-attackers and led to increased government, regulatory and media scrutiny.
Recent highly publicized security breaches have exposed failures to keep pace with the threats posed by cyber-attackers and led to increased government, regulatory and media scrutiny. Cybersecurity has become a top priority of regulators around the world.
The concentration of beneficial ownership in such persons may limit the ability of our other stockholders to influence the affairs of the Company. We may change our dividend policy at any time and there is no guarantee that we will pay dividends in the future.
The concentration of beneficial ownership in such persons may limit the ability of our other stockholders to influence the affairs of the Company.
Any declines in the equity markets, or in market segments in which our investment products and strategies are concentrated, could reduce the value of our seed investments and/or our assets under management, revenue and earnings. Our business, operations and investments are subject to risks associated with and arising from epidemics and pandemics such as COVID-19.
Any declines in the equity markets, or in market segments in which our investment products and strategies are concentrated, could reduce the value of our seed investments and/or our assets under management, revenue and earnings. 12 The Federal Reserve Board significantly increased the federal funds rate during 2022 and 2023 to combat rising inflation in the U.S.
Continued inflationary pressures and fluctuations in prevailing interest rates may negatively affect our investment opportunities, the value of our investments and demand for our strategies, including our preferred securities and fixed income investments and strategies. Inflationary factors have also negatively impacted our expense base, particularly segments of compensation and certain operating and vendor costs.
While interest rate reductions are possible during 2024, continued inflationary pressures and elevated interest rates may negatively affect our investment opportunities, the value of our investments and the relative attractiveness of and demand for our strategies, including our preferred securities and fixed income investments and strategies.
Our involvement in legal proceedings could adversely affect our results of operations and financial condition. Many aspects of our business involve risks of legal liability.
Many aspects of our business involve risks of legal liability.
Failure to maintain adequate business continuity plans could have a material adverse effect on the Company and its products. Significant portions of our business operations and those of our critical third-party service providers are concentrated in a few geographic areas, including New York and New Jersey.
Failure to maintain adequate business continuity plans in the event of a catastrophic event could have a material adverse effect on the Company and its products. Our operations are dependent on our ability to protect our personnel, offices and technology infrastructure against damage from catastrophic or business continuity events that could have a significant disruptive effect on our operations.
See “The discontinuation of LIBOR and transition to alternative reference rates, may adversely affect the value of certain LIBOR-based assets we manage and expose us to additional risks.” Although the full extent of the foregoing regulatory changes is still unclear, they may affect our business operations and increase our operating expenses.
See “Regulations restricting the use of commission credits to pay for research have increased, and may continue to increase, our operating expenses.” Although the full extent of the foregoing regulatory changes is still unclear, they may affect our business operations and increase our operating expenses. Our involvement in legal proceedings could adversely affect our results of operations and financial condition.
See “Regulations restricting the use of commission credits to pay for research have increased, and may continue to increase, our operating expenses.” The discontinuation of LIBOR and transition to alternative reference rates introduces a number of risks for us, our clients and the financial services industry more widely.
The occurrence of any of these events could have a material adverse effect on our revenue. 13 Regulations restricting the use of commission credits to pay for research have increased, and may continue to increase, our operating expenses.

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changePeriod Total Number of Shares Purchased (1) Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs October 1 through October 31, 2022 — $ — — — November 1 through November 30, 2022 14,451 $ 64.99 — — December 1 through December 31, 2022 66 $ 66.85 — — Total 14,517 $ 65.00 — — _________________________ (1) Purchases made to satisfy the income tax withholding obligations of certain employees upon the vesting and delivery of restricted stock units issued under the Company's Amended and Restated Stock Incentive Plan.
Biggest changePeriod Total Number of Shares Purchased (1) Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs October 1 through October 31, 2023 — $ — — — November 1 through November 30, 2023 14,963 $ 56.79 — — December 1 through December 31, 2023 111 $ 73.87 — — Total 15,074 $ 56.92 — — _________________________ (1) Purchases made to satisfy the income tax withholding obligations of certain employees upon the vesting and delivery of restricted stock units issued under the Company's Amended and Restated Stock Incentive Plan.
Issuer Purchases of Equity Securities During the three months ended December 31, 2022, we made the following purchases of our equity securities that are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934.
Issuer Purchases of Equity Securities During the three months ended December 31, 2023, we made the following purchases of our equity securities that are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934.
When determining whether to pay a dividend, we take into account general economic and business conditions, our strategic plans, our financial results and condition, contractual, legal and regulatory restrictions on the payment of dividends by us and our subsidiaries and such other factors deemed relevant.
When determining whether to pay a dividend, we take into account general economic and business conditions, our strategic plans, our financial results and condition, cash flows and liquidity, contractual, legal and regulatory restrictions on the payment of dividends by us and our subsidiaries and such other factors deemed relevant.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is listed on the New York Stock Exchange (NYSE) and is traded under the symbol “CNS”. As of February 17, 2023, there were 46 holders of record of our common stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is listed on the New York Stock Exchange (NYSE) and is traded under the symbol “CNS”. As of February 16, 2024, there were 50 h olders of record of our common stock.
On February 23, 2023, we declared a quarterly cash dividend on our common stock in the amount of $0.57 per share. This dividend will be payable on March 16, 2023 to stockholders of record at the close of business on March 6, 2023.
On February 22, 2024, we declared a quarterly cash dividend on our common stock in the amount of $0.59 per share. This dividend will be payable on March 14, 2024 to stockholders of record at the close of business on March 4, 2024.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeOur overall exposure to Russian and Ukrainian securities is limited and we do not expect a material impact to our financial results. 20 Assets Under Management By Investment Vehicle (in millions) Years Ended December 31, 2022 2021 2020 Open-end Funds Assets under management, beginning of period $ 50,911 $ 35,160 $ 30,725 Inflows 17,939 19,542 17,556 Outflows (19,713) (10,765) (12,135) Net inflows (outflows) (1,774) 8,777 5,421 Market appreciation (depreciation) (10,282) 8,936 405 Distributions (1,952) (1,936) (1,391) Transfers — (26) — Total increase (decrease) (14,008) 15,751 4,435 Assets under management, end of period $ 36,903 $ 50,911 $ 35,160 Percentage of total assets under management 45.9 % 47.7 % 44.0 % Average assets under management $ 43,202 $ 42,991 $ 30,152 Institutional Accounts Assets under management, beginning of period $ 42,727 $ 33,255 $ 31,813 Inflows 5,915 6,152 7,192 Outflows (6,357) (5,563) (4,418) Net inflows (outflows) (442) 589 2,774 Market appreciation (depreciation) (8,927) 10,041 53 Distributions (985) (1,184) (1,385) Transfers — 26 — Total increase (decrease) (10,354) 9,472 1,442 Assets under management, end of period $ 32,373 $ 42,727 $ 33,255 Percentage of total assets under management 40.3 % 40.1 % 41.6 % Average assets under management $ 36,383 $ 38,906 $ 29,883 Closed-end Funds Assets under management, beginning of period $ 12,991 $ 11,493 $ 9,644 Inflows 575 206 2,652 Outflows — (119) (89) Net inflows (outflows) 575 87 2,563 Market appreciation (depreciation) (1,722) 2,033 (197) Distributions (695) (622) (517) Total increase (decrease) (1,842) 1,498 1,849 Assets under management, end of period $ 11,149 $ 12,991 $ 11,493 Percentage of total assets under management 13.9 % 12.2 % 14.4 % Average assets under management $ 12,039 $ 12,317 $ 9,140 Total Assets under management, beginning of period $ 106,629 $ 79,908 $ 72,182 Inflows 24,429 25,900 27,400 Outflows (26,070) (16,447) (16,642) Net inflows (outflows) (1,641) 9,453 10,758 Market appreciation (depreciation) (20,931) 21,010 261 Distributions (3,632) (3,742) (3,293) Total increase (decrease) (26,204) 26,721 7,726 Assets under management, end of period $ 80,425 $ 106,629 $ 79,908 Average assets under management $ 91,624 $ 94,214 $ 69,175 21 Assets Under Management - Institutional Accounts By Account Type (in millions) Years Ended December 31, 2022 2021 2020 Advisory Assets under management, beginning of period $ 24,599 $ 17,628 $ 15,669 Inflows 3,672 4,891 4,324 Outflows (4,734) (2,945) (2,771) Net inflows (outflows) (1,062) 1,946 1,553 Market appreciation (depreciation) (4,906) 4,999 406 Transfers — 26 — Total increase (decrease) (5,968) 6,971 1,959 Assets under management, end of period $ 18,631 $ 24,599 $ 17,628 Percentage of institutional assets under management 57.6 % 57.6 % 53.0 % Average assets under management $ 21,233 $ 22,092 $ 15,650 Japan Subadvisory Assets under management, beginning of period $ 11,329 $ 9,720 $ 10,323 Inflows 988 305 1,601 Outflows (436) (1,075) (626) Net inflows (outflows) 552 (770) 975 Market appreciation (depreciation) (2,520) 3,563 (193) Distributions (985) (1,184) (1,385) Total increase (decrease) (2,953) 1,609 (603) Assets under management, end of period $ 8,376 $ 11,329 $ 9,720 Percentage of institutional assets under management 25.9 % 26.5 % 29.2 % Average assets under management $ 9,302 $ 10,335 $ 9,014 Subadvisory Excluding Japan Assets under management, beginning of period $ 6,799 $ 5,907 $ 5,821 Inflows 1,255 956 1,267 Outflows (1,187) (1,543) (1,021) Net inflows (outflows) 68 (587) 246 Market appreciation (depreciation) (1,501) 1,479 (160) Total increase (decrease) (1,433) 892 86 Assets under management, end of period $ 5,366 $ 6,799 $ 5,907 Percentage of institutional assets under management 16.6 % 15.9 % 17.8 % Average assets under management $ 5,848 $ 6,479 $ 5,219 Total Institutional Accounts Assets under management, beginning of period $ 42,727 $ 33,255 $ 31,813 Inflows 5,915 6,152 7,192 Outflows (6,357) (5,563) (4,418) Net inflows (outflows) (442) 589 2,774 Market appreciation (depreciation) (8,927) 10,041 53 Distributions (985) (1,184) (1,385) Transfers — 26 — Total increase (decrease) (10,354) 9,472 1,442 Assets under management, end of period $ 32,373 $ 42,727 $ 33,255 Average assets under management $ 36,383 $ 38,906 $ 29,883 22 Assets Under Management By Investment Strategy (in millions) Years Ended December 31, 2022 2021 2020 U.S.
Biggest changeThe depreciation resulted, in part, from elevated interest rates that continued through 2023, primarily impacting the market values of real estate and preferred securities portfolios. 23 Assets Under Management By Investment Vehicle (in millions) Years Ended December 31, 2023 2022 2021 Open-end Funds Assets under management, beginning of period $ 36,903 $ 50,911 $ 35,160 Inflows 11,937 17,939 19,542 Outflows (13,614) (19,713) (10,765) Net inflows (outflows) (1,677) (1,774) 8,777 Market appreciation (depreciation) 3,231 (10,282) 8,936 Distributions (1,265) (1,952) (1,936) Transfers (160) — (26) Total increase (decrease) 129 (14,008) 15,751 Assets under management, end of period $ 37,032 $ 36,903 $ 50,911 Percentage of total assets under management 44.5 % 45.9 % 47.7 % Average assets under management $ 36,159 $ 43,202 $ 42,991 Institutional Accounts Assets under management, beginning of period $ 32,373 $ 42,727 $ 33,255 Inflows 2,985 5,915 6,152 Outflows (3,225) (6,357) (5,563) Net inflows (outflows) (240) (442) 589 Market appreciation (depreciation) 3,626 (8,927) 10,041 Distributions (891) (985) (1,184) Transfers 160 — 26 Total increase (decrease) 2,655 (10,354) 9,472 Assets under management, end of period $ 35,028 $ 32,373 $ 42,727 Percentage of total assets under management 42.1 % 40.3 % 40.1 % Average assets under management $ 32,878 $ 36,383 $ 38,906 Closed-end Funds Assets under management, beginning of period $ 11,149 $ 12,991 $ 11,493 Inflows 17 575 206 Outflows (91) — (119) Net inflows (outflows) (74) 575 87 Market appreciation (depreciation) 617 (1,722) 2,033 Distributions (616) (695) (622) Total increase (decrease) (73) (1,842) 1,498 Assets under management, end of period $ 11,076 $ 11,149 $ 12,991 Percentage of total assets under management 13.3 % 13.9 % 12.2 % Average assets under management $ 10,854 $ 12,039 $ 12,317 Total Assets under management, beginning of period $ 80,425 $ 106,629 $ 79,908 Inflows 14,939 24,429 25,900 Outflows (16,930) (26,070) (16,447) Net inflows (outflows) (1,991) (1,641) 9,453 Market appreciation (depreciation) 7,474 (20,931) 21,010 Distributions (2,772) (3,632) (3,742) Total increase (decrease) 2,711 (26,204) 26,721 Assets under management, end of period $ 83,136 $ 80,425 $ 106,629 Average assets under management $ 79,891 $ 91,624 $ 94,214 24 Assets Under Management - Institutional Accounts By Account Type (in millions) Years Ended December 31, 2023 2022 2021 Advisory Assets under management, beginning of period $ 18,631 $ 24,599 $ 17,628 Inflows 1,407 3,672 4,891 Outflows (1,860) (4,734) (2,945) Net inflows (outflows) (453) (1,062) 1,946 Market appreciation (depreciation) 1,926 (4,906) 4,999 Transfers 160 — 26 Total increase (decrease) 1,633 (5,968) 6,971 Assets under management, end of period $ 20,264 $ 18,631 $ 24,599 Percentage of institutional assets under management 57.9 % 57.6 % 57.6 % Average assets under management $ 18,798 $ 21,233 $ 22,092 Japan Subadvisory Assets under management, beginning of period $ 8,376 $ 11,329 $ 9,720 Inflows 823 988 305 Outflows (474) (436) (1,075) Net inflows (outflows) 349 552 (770) Market appreciation (depreciation) 1,192 (2,520) 3,563 Distributions (891) (985) (1,184) Total increase (decrease) 650 (2,953) 1,609 Assets under management, end of period $ 9,026 $ 8,376 $ 11,329 Percentage of institutional assets under management 25.8 % 25.9 % 26.5 % Average assets under management $ 8,633 $ 9,302 $ 10,335 Subadvisory Excluding Japan Assets under management, beginning of period $ 5,366 $ 6,799 $ 5,907 Inflows 755 1,255 956 Outflows (891) (1,187) (1,543) Net inflows (outflows) (136) 68 (587) Market appreciation (depreciation) 508 (1,501) 1,479 Total increase (decrease) 372 (1,433) 892 Assets under management, end of period $ 5,738 $ 5,366 $ 6,799 Percentage of institutional assets under management 16.4 % 16.6 % 15.9 % Average assets under management $ 5,447 $ 5,848 $ 6,479 Total Institutional Accounts Assets under management, beginning of period $ 32,373 $ 42,727 $ 33,255 Inflows 2,985 5,915 6,152 Outflows (3,225) (6,357) (5,563) Net inflows (outflows) (240) (442) 589 Market appreciation (depreciation) 3,626 (8,927) 10,041 Distributions (891) (985) (1,184) Transfers 160 — 26 Total increase (decrease) 2,655 (10,354) 9,472 Assets under management, end of period $ 35,028 $ 32,373 $ 42,727 Average assets under management $ 32,878 $ 36,383 $ 38,906 25 Assets Under Management By Investment Strategy (in millions) Years Ended December 31, 2023 2022 2021 U.S.
Management’s Discussion and Analysis of Financial Condition and Results of Operations This Annual Report on Form 10-K and other documents filed by us contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect management’s current views with respect to, among other things, our operations and financial performance.
Management’s Discussion and Analysis of Financial Condition and Results of Operations This Annual Report on Form 10-K and other documents filed by us contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), which reflect management’s current views with respect to, among other things, our operations and financial performance.
Non-operating Income (Loss) (in thousands) Year Ended December 31, 2022 Consolidated Investment Vehicles Corporate Seed Investments Corporate Other Total Interest and dividend income—net $ 3,718 $ 1,355 $ 1,745 $ 6,818 Gain (loss) from investments—net (26,480) (2,345) 3,719 (1) (25,106) Foreign currency gain (loss)—net (3,765) (14) 3,026 (753) Total non-operating income (loss) (26,527) (1,004) 8,490 (19,041) Net (income) loss attributable to noncontrolling interests 21,556 — — 21,556 Non-operating income (loss) attributable to the Company $ (4,971) $ (1,004) $ 8,490 $ 2,515 _________________________ (1) Comprised primarily of gain (loss) on derivative contracts, which are utilized to economically hedge a portion of the market risk of the Company's seed investments included in both Consolidated Investment Vehicles and Corporate Seed Investments.
(in thousands) Year Ended December 31, 2022 Consolidated Investment Vehicles Corporate Seed Investments Corporate Other Total Interest and dividend income—net $ 3,718 $ 1,355 $ 1,745 $ 6,818 Gain (loss) from investments—net (26,480) (2,345) 3,719 (1) (25,106) Foreign currency gain (loss)—net (3,765) (14) 3,026 (2) (753) Total non-operating income (loss) (26,527) (1,004) 8,490 (19,041) Net (income) loss attributable to noncontrolling interests 21,556 — — 21,556 Non-operating income (loss) attributable to the Company $ (4,971) $ (1,004) $ 8,490 $ 2,515 _________________________ (1) Comprised primarily of gain (loss) on derivative contracts, which are utilized to economically hedge a portion of the market risk of the Company's seed investments included in both Consolidated Investment Vehicles and Corporate Seed Investments.
Net cash used in investing activities was $2.9 million, which included purchases of property and equipment of $4.2 million, partially offset by net proceeds from the sales and maturities of U.S. Treasury securities held for corporate purposes and securities held directly for the purpose of establishing performance track records of $1.0 million.
Net cash used in investing activities was $2.9 million, which included purchases of property and equipment of $4.2 million, partially offset by net proceeds from sales and maturities of U.S. Treasury securities held for corporate purposes and securities held directly for the purpose of establishing performance track records of $1.0 million.
Net cash used in financing activities was $145.4 million, including dividends paid to stockholders of $147.6 million, which included a special dividend of $60.3 million paid on November 30, 2021, repurchases of common stock to satisfy employee withholding tax obligations on the vesting and delivery of restricted stock units of $22.6 million, partially offset by net contributions from noncontrolling interests of $23.7 million.
Net cash used in financing activities was $145.4 million, including dividends paid to stockholders of $147.6 million, which included a special dividend of $60.3 million paid on November 30, 2021, repurchases 39 of common stock to satisfy employee withholding tax obligations on the vesting and delivery of restricted stock units of $22.6 million, partially offset by net contributions from noncontrolling interests of $23.7 million.
Non-operating Income (Loss) (in thousands) Year Ended December 31, 2021 Consolidated Investment Vehicles Corporate Seed Investments Corporate Other Total Interest and dividend income—net $ 2,166 $ 652 $ 59 $ 2,877 Gain (loss) from investments—net 20,072 6,130 (7,418) (1) 18,784 Foreign currency gain (loss)—net 331 (1) (419) (89) Total non-operating income (loss) 22,569 6,781 (7,778) 21,572 Net (income) loss attributable to noncontrolling interests (14,758) — — (14,758) Non-operating income (loss) attributable to the Company $ 7,811 $ 6,781 $ (7,778) $ 6,814 _________________________ (1) Comprised primarily of gain (loss) on derivative contracts, which are utilized to economically hedge a portion of the market risk of the Company's seed investments including both consolidated investment vehicles and corporate seed investments.
(in thousands) Year Ended December 31, 2021 Consolidated Investment Vehicles Corporate Seed Investments Corporate Other Total Interest and dividend income—net $ 2,166 $ 652 $ 59 $ 2,877 Gain (loss) from investments—net 20,072 6,130 (7,418) (1) 18,784 Foreign currency gain (loss)—net 331 (1) (419) (2) (89) Total non-operating income (loss) 22,569 6,781 (7,778) 21,572 Net (income) loss attributable to noncontrolling interests (14,758) — — (14,758) Non-operating income (loss) attributable to the Company $ 7,811 $ 6,781 $ (7,778) $ 6,814 _________________________ (1) Comprised primarily of gain (loss) on derivative contracts, which are utilized to economically hedge a portion of the market risk of the Company's seed investments included in both Consolidated Investment Vehicles and Corporate Seed Investments.
Cash flows from operating activities primarily consisted of net income adjusted for certain non-cash items and changes in assets and liabilities. Net cash provided by operating activities was $242.9 million. Net cash provided by investing activities was $47.6 million, which included $41.7 million of proceeds from the sales and maturities of U.S.
Cash flows from operating activities primarily consisted of net income adjusted for certain non-cash items and changes in assets and liabilities. Net cash provided by operating activities was $242.9 million. Net cash provided by investing activities was $47.6 million, which included $41.7 million of proceeds from sales and maturities of U.S.
Market depreciation included $12.1 billion from U.S. real estate, $5.0 billion from global/international real estate and $3.2 billion from preferred securities. Distributions included $2.4 billion from U.S. real estate and $834 million from preferred securities. Our overall organic decay rate was (1.5%) for the year ended December 31, 2022.
Market depreciation included $12.1 billion from U.S. real estate, $5.0 billion from global/international real estate and $3.2 billion from preferred securities. Distributions 29 included $2.4 billion from U.S. real estate and $834 million from preferred securities. Our overall organic decay rate was (1.5%) for the year ended December 31, 2022.
See Note 14, Income Taxes , in the notes to the consolidated financial statements included in Part IV, Item 15 of this filing. Net Capital Requirements Several of our subsidiaries are subject to minimum net capital requirements by the local laws and regulations to which they are subject.
See Note 15, Income Taxes , in the notes to the consolidated financial statements included in Part IV, Item 15 of this filing. Net Capital Requirements Several of our subsidiaries are subject to minimum net capital requirements by the local laws and regulations to which they are subject.
(2) Represents net foreign currency exchange (gains) losses associated with U.S. dollar-denominated assets held by certain foreign subsidiaries. 35 Changes in Financial Condition, Liquidity and Capital Resources We seek to maintain a balance sheet that supports our business strategies and provides the appropriate amount of liquidity at all times.
(2) Represents net foreign currency exchange (gains) losses associated with U.S. dollar-denominated assets held by certain foreign subsidiaries. 37 Changes in Financial Condition, Liquidity and Capital Resources We seek to maintain a balance sheet that supports our business strategies and provides the appropriate amount of liquidity at all times.
The performance of the specified reference benchmark for each account and investment model is measured net of withholding taxes, where applicable. This is not investment advice and may not be construed as sales or marketing material for any financial product or service sponsored or provided by Cohen & Steers. (2) © 2023 Morningstar, Inc. All Rights Reserved.
The performance of the specified reference benchmark for each account and investment model is measured net of withholding taxes, where applicable. This is not investment advice and may not be construed as sales or marketing material for any financial product or service sponsored or provided by Cohen & Steers. (2) © 2024 Morningstar, Inc. All Rights Reserved.
(CNS), a Delaware corporation formed in 2004, and its subsidiaries are collectively referred to as the Company, we, us or our Executive Overview General We are 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.
(CNS), a Delaware corporation formed in 2004, and its subsidiaries are collectively referred to as the Company, we, us or our. Executive Overview General We are a global investment manager specializing in real assets and alternative income, including listed and private real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions.
Distribution and service fee expenses increased from the year ended December 31, 2021, primarily due to costs of $14.2 million associated with the initial public offering of RLTY in 2022, partially offset by a shift in the composition of assets under management into lower cost share classes.
Distribution and service fee expenses increased from the year ended December 31, 2021, primarily due to costs of $14.2 million associated with the offering of RLTY in 2022, partially offset by a shift in the composition of assets under management into lower cost share classes.
Actual results could differ from those estimates. 38 Our significant accounting policies are disclosed in Note 2, Summary of Significant Accounting Policies , in the notes to the consolidated financial statements included in Part IV, Item 15 of this filing and should be read in conjunction with the summarized information below.
Actual results could differ from those estimates. 40 Our significant accounting policies are disclosed in Note 2, Summary of Significant Accounting Policies , in the notes to the consolidated financial statements included in Part IV, Item 15 of this filing and should be read in conjunction with the summarized information below.
As of December 31, 2022, each of our subsidiaries subject to a minimum net capital requirement satisfied the applicable requirement. See Note 12, Regulatory Requirements , in the notes to the consolidated financial statements included in Part IV, Item 15.
As of December 31, 2023, each of our subsidiaries subject to a minimum net capital requirement satisfied the applicable requirement. See Note 12, Regulatory Requirements , in the notes to the consolidated financial statements included in Part IV, Item 15.
Our revenue from the wealth channel is primarily derived from investment advisory, administration, distribution and service fees from open-end and closed-end funds and other commingled vehicles. Our revenue from the institutional channel is derived from fees received from our clients for managing advised and subadvised accounts.
Our revenue from the wealth channel is primarily derived from investment advisory, administration, distribution and service fees from open-end and closed-end funds as well as other commingled vehicles. Our revenue from the institutional channel is derived from fees received from our clients for managing advised and subadvised accounts.
These differences are reflected as increases or decreases in income tax expense in the period in which new information becomes available. Recently Issued Accounting Pronouncements See discussion of Recently Issued Accounting Pronouncements in Note 2 of the consolidated financial statements. 39
These differences are reflected as increases or decreases in income tax expense in the period in which new information becomes available. Recently Issued Accounting Pronouncements See discussion of Recently Issued Accounting Pronouncements in Note 2 of the consolidated financial statements. 41
We perform a review of our receivables on an ongoing basis in order to assess collectability and, based on our analysis at December 31, 2022, there was no allowance for uncollectible accounts required.
We perform a review of our receivables on an ongoing basis in order to assess collectability and, based on our analysis at December 31, 2023, there was no allowance for uncollectible accounts required.
GAAP to As Adjusted Financial Results Net Income Attributable to Common Stockholders and Diluted Earnings per Share Years Ended December 31, (in thousands, except per share data) 2022 2021 2020 Net income attributable to common stockholders, U.S.
GAAP to As Adjusted Financial Results Net Income Attributable to Common Stockholders and Diluted Earnings per Share Years Ended December 31, (in thousands, except per share data) 2023 2022 2021 Net income attributable to common stockholders, U.S.
Potential uses of capital range from funding the upfront costs associated with closed-end fund launches and rights offerings, seeding new strategies and vehicles, co-investing in private real estate vehicles, and making various one-time investments to grow our firm infrastructure as our business scales.
Potential uses of capital range from, among other things, funding the upfront costs associated with closed-end fund launches and rights offerings, seeding new strategies and vehicles, co-investing in private real estate vehicles and making various one-time investments to grow our firm infrastructure as our business scales.
When determining whether to pay a dividend, we take into account general economic and business conditions, our strategic plans, our results of operations and financial condition, contractual, legal and regulatory restrictions on the payment of dividends, if any, by us and our subsidiaries and such other factors deemed relevant.
When determining whether to pay a dividend, we take into account general economic and business conditions, our strategic plans, our results of operations and financial condition, cash flows and liquidity, contractual, legal and regulatory restrictions on the payment of dividends, if any, by us and our subsidiaries and such other factors deemed relevant.
Distributions included $1.2 billion from U.S. real estate and $611 million from preferred securities. Of these distributions, $1.6 billion was reinvested and included in net flows. Our organic decay rate for open-end funds was (3.5%) for the year ended December 31, 2022.
Market depreciation included $7.1 billion from U.S. real estate and $2.2 billion from preferred securities. Distributions included $1.2 billion from U.S. real estate and $611 million from preferred securities. Of these distributions, $1.6 billion was reinvested and included in net flows. Our organic decay rate for open-end funds was (3.5%) for the year ended December 31, 2022.
This revenue is recognized over the period that the assets are managed. A majority of our revenue, 93.4%, 93.1% and 92.4% for the years ended December 31, 2022, 2021 and 2020, respectively, was derived from investment advisory and administration fees for providing asset management services to institutional accounts as well as open-end funds and closed-end funds sponsored by the Company.
This revenue is recognized over the period that the assets are managed. A majority of our revenue, 93.8%, 93.4% and 93.1% for the years ended December 31, 2023, 2022 and 2021, respectively, was derived from investment advisory and administration fees for providing asset management services to institutional accounts as well as open-end funds and closed-end funds sponsored by the Company.
In order to provide us with the financial flexibility to pursue these opportunities, on January 20, 2023, we entered into a Credit Agreement providing for a $100 million senior unsecured revolving credit facility maturing on January 20, 2026. Borrowings under the Credit Agreement will be used for working capital and other general corporate purposes.
In order to provide us with the financial flexibility to pursue these opportunities, on January 20, 2023, we entered into a Credit Agreement providing for a $100.0 million senior unsecured revolving credit facility maturing on January 20, 2026. 38 Borrowings under the Credit Agreement, if any, will be used for working capital and other general corporate purposes.
Contingencies Due to the uncertainty with respect to the timing of future cash flows associated with unrecognized tax benefits at December 31, 2022, the Company is unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authorities. Therefore, $5.0 million of gross unrecognized tax benefits have been excluded from the contractual obligations table above.
Contingencies Due to the uncertainty with respect to the timing of future cash flows associated with unrecognized tax benefits at December 31, 2023, the Company is unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authorities. Therefore, $2.5 million of gross unrecognized tax benefits have been excluded from the contractual obligations table above.
Treasury securities held for corporate purposes and net proceeds of securities held directly for the purpose of establishing performance track records of $8.1 million.
Treasury securities held for corporate purposes and net proceeds from sales of securities held directly for the purpose of establishing performance track records of $8.1 million.
Based on independent rating by Morningstar, Inc. of investment performance of each Cohen & Steers-sponsored open-end U.S.-registered mutual fund for all share classes for the overall period at December 30, 2022. Overall Morningstar rating is a weighted average based on the 3-year, 5-year and 10-year Morningstar rating.
Based on independent rating by Morningstar, Inc. of investment performance of each Cohen & Steers-sponsored open-end U.S.-registered mutual fund for all share classes for the overall period at December 31, 2023. Overall Morningstar rating is a weighted average based on the 3-year, 5-year and 10-year Morningstar rating.
Expenses (in thousands) Years Ended December 31, 2022 2021 $ Change % Change Employee compensation and benefits $ 208,831 $ 195,443 $ 13,388 6.9 % Distribution and service fees 82,928 75,891 $ 7,037 9.3 % General and administrative 54,826 48,034 $ 6,792 14.1 % Depreciation and amortization 4,383 4,092 $ 291 7.1 % Total expenses $ 350,968 $ 323,460 $ 27,508 8.5 % Employee compensation and benefits increased from the year ended December 31, 2021, primarily due to higher amortization of restricted stock units of $9.1 million and an increase in salaries of $6.0 million, partially offset by lower incentive compensation of $2.3 million.
Distribution and service fees for the year ended December 31, 2022 decreased primarily due to lower average assets under management in U.S. open-end funds. 33 Expenses (in thousands) Years Ended December 31, 2022 2021 $ Change % Change Employee compensation and benefits $ 208,831 $ 195,443 $ 13,388 6.9 % Distribution and service fees 82,928 75,891 $ 7,037 9.3 % General and administrative 54,826 48,034 $ 6,792 14.1 % Depreciation and amortization 4,383 4,092 $ 291 7.1 % Total expenses $ 350,968 $ 323,460 $ 27,508 8.5 % Employee compensation and benefits increased from the year ended December 31, 2021, primarily due to higher amortization of restricted stock units of $9.1 million and an increase in salaries of $6.0 million, partially offset by lower incentive compensation of $2.3 million.
Operating margin for the year ended December 31, 2022 decreased to 38.1% from 44.6% for the year ended December 31, 2021. The year ended December 31, 2022 included costs associated with the initial public offering of RLTY. Operating margin represents the ratio of operating income to revenue.
Operating margin for the year ended December 31, 2022 decreased to 38.1% from 44.6% for the year ended December 31, 2021. The year ended December 31, 2022 included costs associated with the initial public offering of RLTY.
Founded in 1986, we are headquartered in New York City, with offices in London, Dublin, Hong Kong and Tokyo. Our primary investment strategies include U.S. real estate, preferred securities and low duration preferred securities, global/international real estate, global listed infrastructure, real assets multi-strategy, midstream energy and MLPs, as well as global natural resource equities.
Founded in 1986, we are headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and Singapore. Our primary investment strategies include U.S. real estate, preferred securities, including low duration preferred securities, private real estate solutions, global/international real estate, global listed infrastructure, real assets multi-strategy, as well as global natural resource equities.
While we believe that these as adjusted financial results are useful in evaluating operating performance, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with U.S. GAAP. Reconciliation of U.S.
While management believes that these as adjusted financial results are useful in evaluating operating performance, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with U.S. GAAP.
Current liabilities Current liabilities included accrued compensation and benefits, distribution and service fees payable, operating lease obligations due within 12 months, certain income taxes payable and other liabilities and accrued expenses. Future capital needs Our business has become more capital intensive, primarily through co-investment opportunities.
Current liabilities Current liabilities included accrued compensation and benefits, distribution and service fees payable, operating lease obligations due within 12-months, certain income taxes payable and other liabilities and accrued expenses. Future liquidity needs Our business has become more capital intensive.
Net outflows included $3.2 billion from preferred securities, partially offset by net inflows of $748 million into real assets multi-strategy (included in "Other" in the table on pages 23 and 24), $559 million into global/international real estate and $454 million into global listed infrastructure.
Net outflows included $3.2 billion from preferred securities, partially offset by net inflows of $748 million into real assets multi-strategy (included in "Other" in the Assets under Management - By Investment Strategy table), $559 million into global/international real estate and $454 million into global listed infrastructure.
Average assets under management for advisory accounts for the year ended December 31, 2022 decreased 3.9% to $21.2 billion from $22.1 billion for the year ended December 31, 2021. Assets under management in Japan subadvisory accounts at December 31, 2022, which represented 25.9% of institutional assets under management, decreased 26.1% to $8.4 billion from $11.3 billion at December 31, 2021.
Our organic decay rate for advisory accounts was (4.3%) for the year ended December 31, 2022. Assets under management in Japan subadvisory accounts at December 31, 2022, which represented 25.9% of institutional assets under management, decreased 26.1% to $8.4 billion from $11.3 billion at December 31, 2021.
The increase was due to net inflows of $8.8 billion and market appreciation of $8.9 billion, partially offset by distributions of $1.9 billion. Net inflows included $4.2 billion into U.S. real estate and $3.3 billion into preferred securities. Market appreciation included $7.8 million from U.S. real estate.
The increase was due to market appreciation of $3.2 billion, partially offset by net outflows of $1.7 billion and distributions of $1.3 billion. Net outflows included $1.4 billion from preferred securities. Market appreciation included $2.4 billion from U.S. real estate and $547 million from preferred securities. Distributions included $608 million from U.S. real estate and $538 million from preferred securities.
GAAP to As Adjusted Financial Results Revenue, Expenses, Operating Income and Operating Margin Years Ended December 31, (in thousands, except percentages) 2022 2021 2020 Revenue, U.S. GAAP $ 566,906 $ 583,832 $ 427,536 Seed investments (1) 790 411 281 Revenue, as adjusted $ 567,696 $ 584,243 $ 427,817 Expenses, U.S.
GAAP to As Adjusted Financial Results Revenue, Expenses, Operating Income and Operating Margin Years Ended December 31, (in thousands, except percentages) 2023 2022 2021 Revenue, U.S. GAAP $ 489,637 $ 566,906 $ 583,832 Seed investments—net (1) (466) 790 411 Revenue, as adjusted $ 489,171 $ 567,696 $ 584,243 Expenses, U.S.
On February 23, 2023, we declared a quarterly dividend on our common stock in the amount of $0.57 per share. This dividend will be payable on March 16, 2023 to stockholders of record at the close of business on March 6, 2023.
On February 22, 2024, we declared a quarterly dividend on our common stock in the amount of $0.59 per share. This dividend will be payable on March 14, 2024 to stockholders of record at the close of business on March 4, 2024.
The table below summarizes our cash flows: Years Ended December 31, (in thousands) 2022 2021 2020 Cash Flow Data: Net cash provided by (used in) operating activities $ 61,680 $ 242,901 $ 89,186 Net cash provided by (used in) investing activities (2,857) 47,648 (1,770) Net cash provided by (used in) financing activities 8,975 (145,426) (148,895) Net increase (decrease) in cash and cash equivalents 67,798 145,123 (61,479) Effect of foreign exchange rate changes on cash and cash equivalents (4,440) (999) 1,359 Cash and cash equivalents, beginning of the period 185,356 41,232 101,352 Cash and cash equivalents, end of the period $ 248,714 $ 185,356 $ 41,232 In 2022, cash and cash equivalents, excluding the effect of foreign exchange rate changes, increased by $67.8 million when compared with 2021.
The table below summarizes our cash flows: Years Ended December 31, (in thousands) 2023 2022 2021 Cash Flow Data: Net cash provided by (used in) operating activities $ 171,961 $ 61,680 $ 242,901 Net cash provided by (used in) investing activities (114,776) (2,857) 47,648 Net cash provided by (used in) financing activities (119,052) 8,975 (145,426) Net increase (decrease) in cash and cash equivalents (61,867) 67,798 145,123 Effect of foreign exchange rate changes on cash and cash equivalents 2,756 (4,440) (999) Cash and cash equivalents, beginning of the period 248,714 185,356 41,232 Cash and cash equivalents, end of the period $ 189,603 $ 248,714 $ 185,356 In 2023, cash and cash equivalents, excluding the effect of foreign exchange rate changes, decreased by $61.9 million when compared with 2022.
The decrease in the implied annual effective fee rate was primarily due to lower performance fees for the year ended December 31, 2022.
The decrease in the implied annual effective fee rate was primarily due to lower performance fees of $636,000 for the year ended December 31, 2022 versus $5.6 million for the year ended December 31, 2021.
(7) Tax adjustments are summarized in the following table: Years Ended December 31, (in thousands) 2022 2021 2020 Exclusion of tax effects associated with items noted above $ (3,522) $ (2,262) $ (17,119) Exclusion of discrete tax items (11,120) (12,039) (10,180) Total tax adjustments $ (14,642) $ (14,301) $ (27,299) Reconciliation of U.S.
(5) Tax adjustments are summarized in the following table: Years Ended December 31, (in thousands) 2023 2022 2021 Exclusion of tax effects associated with items noted above $ (3,085) $ (3,522) $ (2,262) Exclusion of discrete tax items (1,115) (11,120) (12,039) Total tax adjustments $ (4,200) $ (14,642) $ (14,301) Reconciliation of U.S.
Net outflows included $3.1 billion from preferred securities, partially offset by net inflows of $733 million into real assets multi-strategy (included in "Other" in the table on pages 23 and 24), $248 million into global/international real estate and $184 million into global listed infrastructure. Market depreciation included $7.1 billion from U.S. real estate and $2.2 billion from preferred securities.
Net outflows included $3.1 billion from preferred securities, partially offset by net inflows of $733 million into real assets multi-strategy (included in "Other" in the Assets under Management - By Investment Strategy table), $248 million into global/international real estate and $184 million into global listed infrastructure.
Excluding the performance fees of $5.6 million and $7.7 million, the implied annual effective fee rate would have been 36.2 bps for the years ended December 31, 2021 and 2020, respectively. • Total investment advisory and administration revenue from closed-end funds compared with average assets under management implied an annual effective fee rate of 88.4 bps and 85.4 bps for the years ended December 31, 2021 and 2020, respectively.
Total investment advisory and administration revenue from closed-end funds compared with average assets under management implied an annual effective fee rate of 88.6 bps and 88.4 bps for the years ended December 31, 2022 and 2021, respectively.
In 2021, cash and cash equivalents, excluding the effect of foreign exchange rate changes, increased by $145.1 million when compared with 2020. The year ended December 31, 2020 included costs associated with the initial public offering of PTA and the RQI rights offering.
In 2021, cash and cash equivalents, excluding the effect of foreign exchange rate changes, increased by $145.1 million when compared with 2020. The year ended December 31, 2020 included costs associated with the offering of the Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund and the Cohen & Steers Quality Income Realty Fund, Inc. rights offering.
Real Estate Assets under management, beginning of period $ 49,915 $ 32,827 $ 31,024 Inflows 10,572 11,538 11,114 Outflows (10,869) (6,499) (6,478) Net inflows (outflows) (297) 5,039 4,636 Market appreciation (depreciation) (12,097) 14,417 (574) Distributions (2,406) (2,294) (2,282) Transfers (7) (74) 23 Total increase (decrease) (14,807) 17,088 1,803 Assets under management, end of period $ 35,108 $ 49,915 $ 32,827 Percentage of total assets under management 43.7 % 46.8 % 41.1 % Average assets under management $ 41,627 $ 41,315 $ 28,972 Preferred Securities Assets under management, beginning of period $ 26,987 $ 23,185 $ 17,581 Inflows 7,059 8,802 10,979 Outflows (10,212) (5,053) (5,828) Net inflows (outflows) (3,153) 3,749 5,151 Market appreciation (depreciation) (3,240) 964 1,172 Distributions (834) (985) (696) Transfers 7 74 (23) Total increase (decrease) (7,220) 3,802 5,604 Assets under management, end of period $ 19,767 $ 26,987 $ 23,185 Percentage of total assets under management 24.6 % 25.3 % 29.0 % Average assets under management $ 22,638 $ 25,262 $ 18,278 Global/International Real Estate Assets under management, beginning of period $ 19,380 $ 15,214 $ 13,509 Inflows 3,848 3,263 4,122 Outflows (3,289) (2,833) (2,436) Net inflows (outflows) 559 430 1,686 Market appreciation (depreciation) (5,039) 3,933 102 Distributions (118) (197) (83) Total increase (decrease) (4,598) 4,166 1,705 Assets under management, end of period $ 14,782 $ 19,380 $ 15,214 Percentage of total assets under management 18.4 % 18.2 % 19.0 % Average assets under management $ 16,692 $ 17,688 $ 13,193 23 Assets Under Management By Investment Strategy - continued (in millions) Years Ended December 31, 2022 2021 2020 Global Listed Infrastructure Assets under management, beginning of period $ 8,763 $ 6,729 $ 8,076 Inflows 1,566 1,751 997 Outflows (1,112) (765) (1,722) Net inflows (outflows) 454 986 (725) Market appreciation (depreciation) (405) 1,256 (423) Distributions (216) (208) (199) Total increase (decrease) (167) 2,034 (1,347) Assets under management, end of period $ 8,596 $ 8,763 $ 6,729 Percentage of total assets under management 10.7 % 8.2 % 8.4 % Average assets under management $ 8,700 $ 7,970 $ 6,972 Other Assets under management, beginning of period $ 1,584 $ 1,953 $ 1,992 Inflows 1,384 546 188 Outflows (588) (1,297) (178) Net inflows (outflows) 796 (751) 10 Market appreciation (depreciation) (150) 440 (16) Distributions (58) (58) (33) Total increase (decrease) 588 (369) (39) Assets under management, end of period $ 2,172 $ 1,584 $ 1,953 Percentage of total assets under management 2.7 % 1.5 % 2.4 % Average assets under management $ 1,967 $ 1,979 $ 1,760 Total Assets under management, beginning of period $ 106,629 $ 79,908 $ 72,182 Inflows 24,429 25,900 27,400 Outflows (26,070) (16,447) (16,642) Net inflows (outflows) (1,641) 9,453 10,758 Market appreciation (depreciation) (20,931) 21,010 261 Distributions (3,632) (3,742) (3,293) Total increase (decrease) (26,204) 26,721 7,726 Assets under management, end of period $ 80,425 $ 106,629 $ 79,908 Average assets under management $ 91,624 $ 94,214 $ 69,175 24 Investment Performance as of December 31, 2022 _________________________ (1) Past performance is no guarantee of future results.
Real Estate Assets under management, beginning of period $ 35,108 $ 49,915 $ 32,827 Inflows 7,077 10,572 11,538 Outflows (6,521) (10,869) (6,499) Net inflows (outflows) 556 (297) 5,039 Market appreciation (depreciation) 4,495 (12,097) 14,417 Distributions (1,679) (2,406) (2,294) Transfers 70 (7) (74) Total increase (decrease) 3,442 (14,807) 17,088 Assets under management, end of period $ 38,550 $ 35,108 $ 49,915 Percentage of total assets under management 46.4 % 43.7 % 46.8 % Average assets under management $ 36,034 $ 41,627 $ 41,315 Preferred Securities Assets under management, beginning of period $ 19,767 $ 26,987 $ 23,185 Inflows 4,997 7,059 8,802 Outflows (6,890) (10,212) (5,053) Net inflows (outflows) (1,893) (3,153) 3,749 Market appreciation (depreciation) 1,029 (3,240) 964 Distributions (739) (834) (985) Transfers — 7 74 Total increase (decrease) (1,603) (7,220) 3,802 Assets under management, end of period $ 18,164 $ 19,767 $ 26,987 Percentage of total assets under management 21.8 % 24.6 % 25.3 % Average assets under management $ 18,439 $ 22,638 $ 25,262 Global/International Real Estate Assets under management, beginning of period $ 14,782 $ 19,380 $ 15,214 Inflows 1,529 3,848 3,263 Outflows (1,975) (3,289) (2,833) Net inflows (outflows) (446) 559 430 Market appreciation (depreciation) 1,616 (5,039) 3,933 Distributions (93) (118) (197) Transfers (70) — — Total increase (decrease) 1,007 (4,598) 4,166 Assets under management, end of period $ 15,789 $ 14,782 $ 19,380 Percentage of total assets under management 19.0 % 18.4 % 18.2 % Average assets under management $ 14,899 $ 16,692 $ 17,688 26 Assets Under Management By Investment Strategy - continued (in millions) Years Ended December 31, 2023 2022 2021 Global Listed Infrastructure Assets under management, beginning of period $ 8,596 $ 8,763 $ 6,729 Inflows 487 1,566 1,751 Outflows (725) (1,112) (765) Net inflows (outflows) (238) 454 986 Market appreciation (depreciation) 204 (405) 1,256 Distributions (206) (216) (208) Total increase (decrease) (240) (167) 2,034 Assets under management, end of period $ 8,356 $ 8,596 $ 8,763 Percentage of total assets under management 10.1 % 10.7 % 8.2 % Average assets under management $ 8,291 $ 8,700 $ 7,970 Other Assets under management, beginning of period $ 2,172 $ 1,584 $ 1,953 Inflows 849 1,384 546 Outflows (819) (588) (1,297) Net inflows (outflows) 30 796 (751) Market appreciation (depreciation) 130 (150) 440 Distributions (55) (58) (58) Total increase (decrease) 105 588 (369) Assets under management, end of period $ 2,277 $ 2,172 $ 1,584 Percentage of total assets under management 2.7 % 2.7 % 1.5 % Average assets under management $ 2,228 $ 1,967 $ 1,979 Total Assets under management, beginning of period $ 80,425 $ 106,629 $ 79,908 Inflows 14,939 24,429 25,900 Outflows (16,930) (26,070) (16,447) Net inflows (outflows) (1,991) (1,641) 9,453 Market appreciation (depreciation) 7,474 (20,931) 21,010 Distributions (2,772) (3,632) (3,742) Total increase (decrease) 2,711 (26,204) 26,721 Assets under management, end of period $ 83,136 $ 80,425 $ 106,629 Average assets under management $ 79,891 $ 91,624 $ 94,214 27 Investment Performance as of December 31, 2023 _________________________ (1) Past performance is no guarantee of future results.
Net outflows included $1.5 billion from U.S. real estate, partially offset by net inflows of $316 million into global listed infrastructure and $313 million into global/international real estate. Market depreciation included $2.4 billion from global/international real estate and $1.9 billion from U.S. real estate. Our organic decay rate for advisory accounts was (4.3%) for the year ended December 31, 2022.
The decrease was due to net outflows of $1.1 billion and market depreciation of $4.9 billion. Net outflows included $1.5 billion from U.S. real estate, partially offset by net inflows of $316 million into global listed infrastructure and $313 million into global/international real estate. Market depreciation included $2.4 billion from global/international real estate and $1.9 billion from U.S. real estate.
Net inflows included $5.0 billion into U.S. real estate and $3.7 billion into preferred securities. Market appreciation included $14.4 billion from U.S. real estate and $3.9 billion from global/international real estate. Distributions included $2.3 billion from U.S. real estate and $985 million from preferred securities. Our overall organic growth rate was 11.8% for the year ended December 31, 2021.
Market appreciation included $4.5 billion from U.S. real estate, $1.6 billion from global/international real estate and $1.0 billion from preferred securities. Distributions included $1.7 billion from U.S. real estate and $739 million from preferred securities. Our overall organic decay rate was (2.5%) for the year ended December 31, 2023.
Net outflows included $554 million from U.S. real estate. Market appreciation included $2.9 billion from U.S. real estate and $636 million from global/international real estate. Distributions included $1.1 billion from U.S. real estate. Our organic decay rate for Japan subadvisory accounts was (7.9%) for the year ended December 31, 2021.
Market appreciation included $1.8 billion from U.S. real estate and $1.4 billion from global/international real estate. Distributions included $864 million from U.S. real estate. Our organic decay rate for institutional accounts was (0.7%) for the year ended December 31, 2023.
Cash flows from operating activities primarily consisted of net income adjusted for certain non-cash items and changes in assets and liabilities. Net cash provided by operating activities was $61.7 million.
Cash flows from operating activities primarily consisted of net income adjusted for certain non-cash items and changes in assets and liabilities. Net cash provided by operating activities was $172.0 million. Net cash used in investing activities was $114.8 million, which included net purchases of U.S.
Assets under management in Japan subadvisory accounts at December 31, 2021, which represented 26.5% of institutional assets under management, increased 16.6% to $11.3 billion from $9.7 billion at December 31, 2020. The increase was due to market appreciation of $3.6 billion, partially offset by net outflows of $770 million and distributions of $1.2 billion.
Assets under management in Japan subadvisory accounts at December 31, 2023, which represented 25.8% of institutional assets under management, increased 7.8% to $9.0 billion from $8.4 billion at December 31, 2022. The increase was due to net inflows of $349 million and market appreciation of $1.2 billion, partially offset by distributions of $891 million.
Net outflows included $374 million from global/international real estate and $137 million from global listed infrastructure. Market appreciation included $938 million from global/international real estate and $342 million from U.S. real estate. Our organic decay rate for subadvisory accounts excluding Japan was (9.9%) for the year ended December 31, 2021.
Market appreciation included $298 million from global/international real estate and $157 million from U.S. real estate. Our organic decay rate for subadvisory accounts excluding Japan was (2.5%) for the year ended December 31, 2023.
Net Liquid Assets Our current financial condition is highly liquid and is primarily comprised of cash and cash equivalents, liquid seed investments and other current assets. Liquid assets are reduced by current liabilities, which are generally defined as obligations due within one year (together, net liquid assets).
Net Liquid Assets Our current financial condition is highly liquid and is primarily comprised of cash and cash equivalents, U.S. Treasury securities, liquid seed investments and other current assets. Liquid assets are reduced by current liabilities (together, net liquid assets).
GAAP $ 171,042 $ 211,396 $ 76,584 Seed investments (1) 4,317 (5,870) 1,443 Accelerated vesting of restricted stock units 10,260 7,197 774 Lease expense - 280 Park Avenue (2) 776 — — Initial public offering costs (3) 15,239 — 60,559 Rights offering costs (4) — — 11,859 Other non-recurring expenses (5) — — 500 Foreign currency exchange (gains) losses—net (6) (4,741) (475) 871 Tax adjustments (7) (14,642) (14,301) (27,299) Net income attributable to common stockholders, as adjusted $ 182,251 $ 197,947 $ 125,291 Diluted weighted average shares outstanding 49,297 49,090 48,676 Diluted earnings per share, U.S.
GAAP $ 129,049 $ 171,042 $ 211,396 Seed investments—net (1) 2,252 4,317 (5,870) Accelerated vesting of restricted stock units 1,318 10,260 7,197 Lease transition and other costs - 280 Park Avenue (2) 9,721 776 — Closed-end fund offering costs (3) — 15,239 — Foreign currency exchange (gains) losses—net (4) 2,371 (4,741) (475) Tax adjustments—net (5) (4,200) (14,642) (14,301) Net income attributable to common stockholders, as adjusted $ 140,511 $ 182,251 $ 197,947 Diluted weighted average shares outstanding 49,553 49,297 49,090 Diluted earnings per share, U.S.
Changes in Assets Under Management - 2021 Compared with 2020 Assets under management at December 31, 2021 increased 33.4% to $106.6 billion from $79.9 billion at December 31, 2020. The increase was due to net inflows of $9.5 billion and market appreciation of $21.0 billion, partially offset by distributions of $3.7 billion.
Changes in Assets Under Management - 2023 Compared with 2022 Assets under management at December 31, 2023 increased 3.4% to $83.1 billion from $80.4 billion at December 31, 2022. The increase was due to market appreciation of $7.5 billion, partially offset by net outflows of $2.0 billion and distributions of $2.8 billion. Net outflows included $1.9 billion from preferred securities.
Assets under management in subadvisory accounts excluding Japan at December 31, 2021, which represented 15.9% of institutional assets under management, increased 15.1% to $6.8 billion from $5.9 billion at December 31, 2020. The increase was due to market appreciation of $1.5 billion, partially offset by net outflows of $587 million.
Assets under management in advisory accounts at December 31, 2023, which represented 57.9% of institutional assets under management, increased 8.8% to $20.3 billion from $18.6 billion at December 31, 2022. The increase was due to market appreciation of $1.9 billion, partially offset by net outflows of $453 million. Net outflows included $428 million from preferred securities.
Assets under management in advisory accounts at December 31, 2022, which represented 57.6% of institutional assets under management, decreased 24.3% to $18.6 billion from $24.6 billion at December 31, 2021. The decrease was due to net outflows of $1.1 billion and market depreciation of $4.9 billion.
Our organic decay rate for institutional accounts was (1.0%) for the year ended December 31, 2022. Assets under management in advisory accounts at December 31, 2022, which represented 57.6% of institutional assets under management, decreased 24.3% to $18.6 billion from $24.6 billion at December 31, 2021.
Our organic decay rate for institutional accounts was (1.0%) for the year ended December 31, 2022. Average assets under management for institutional accounts for the year ended December 31, 2022 decreased 6.5% to $36.4 billion from $38.9 billion for the year ended December 31, 2021.
Our organic growth rate for Japan subadvisory accounts was 4.9% for the year ended December 31, 2022. Assets under management in subadvisory accounts excluding Japan at December 31, 2022, which represented 16.6% of institutional assets under management, decreased 21.1% to $5.4 billion from $6.8 billion at December 31, 2021.
The determination of our annual provision is subject to judgments and estimates and the actual results included in our annual tax returns may vary from the amounts reported in our consolidated financial statements.
The determination of our annual provision is subject to judgments and estimates and the actual results included in our annual tax returns may vary from the amounts reported in our consolidated financial statements. Accordingly, we recognize additions to, or reductions from, income tax expense as our estimated liabilities are revised and actual tax returns and audits, if any, are settled.
Closed-end funds Assets under management in closed-end funds at December 31, 2021, which represented 12.2% of total assets under management, increased 13.0% to $13.0 billion from $11.5 billion at December 31, 2020. The increase was primarily due to market appreciation of $2.0 billion, partially offset by distributions of $622 million.
Closed-end funds Assets under management in closed-end funds at December 31, 2022, which represented 13.9% of total assets under management, decreased 14.2% to $11.1 billion from $13.0 billion at December 31, 2021. The decrease was due to market depreciation of $1.7 billion and distributions of $695 million, partially offset by net inflows of $575 million.
GAAP to as adjusted results. 2022 Compared with 2021 Revenue (in thousands) Years Ended December 31, 2022 2021 $ Change % Change Investment advisory and administration fees Open-end funds $ 288,577 $ 288,359 $ 218 0.1 % Institutional accounts 134,012 146,345 $ (12,333) (8.4) % Closed-end funds 106,722 108,840 $ (2,118) (1.9) % Total 529,311 543,544 $ (14,233) (2.6) % Distribution and service fees 35,093 37,630 $ (2,537) (6.7) % Other 2,502 2,658 $ (156) (5.9) % Total revenue $ 566,906 $ 583,832 $ (16,926) (2.9) % Investment advisory and administration fees decreased from the year ended December 31, 2021, primarily due to lower average assets under management in both institutional accounts and closed-end funds, as well as lower performance fees from certain institutional accounts. • Total investment advisory and administration revenue from open-end funds compared with average assets under management implied an annual effective fee rate of 66.8 bps and 67.1 bps for the years ended December 31, 2022 and 2021, respectively. • Total investment advisory revenue from institutional accounts compared with average assets under management implied an annual effective fee rate of 36.8 bps and 37.6 bps for the years ended December 31, 2022 and 2021, respectively.
(2) Comprised primarily of net foreign currency exchange gain (loss) associated with U.S. dollar-denominated assets held by certain foreign subsidiaries. 32 Income Taxes A reconciliation of the Company’s statutory federal income tax rate and the effective income tax rate is summarized in the following table: Years Ended December 31, 2023 2022 U.S. statutory tax rate 21.0 % 21.0 % State and local income taxes, net of federal benefit 3.2 3.3 Non-deductible executive compensation 1.9 3.0 Excess tax benefits related to the vesting and delivery of restricted stock units (1.2) (2.7) Unrecognized tax benefit adjustments — (3.3) Other 0.4 0.4 Effective income tax rate 25.3 % 21.7 % 2022 Compared with 2021 Revenue (in thousands) Years Ended December 31, 2022 2021 $ Change % Change Investment advisory and administration fees Open-end funds $ 288,577 $ 288,359 $ 218 0.1 % Institutional accounts 134,012 146,345 $ (12,333) (8.4) % Closed-end funds 106,722 108,840 $ (2,118) (1.9) % Total 529,311 543,544 $ (14,233) (2.6) % Distribution and service fees 35,093 37,630 $ (2,537) (6.7) % Other 2,502 2,658 $ (156) (5.9) % Total revenue $ 566,906 $ 583,832 $ (16,926) (2.9) % Investment advisory and administration fees decreased from the year ended December 31, 2021, primarily due to lower average assets under management in both institutional accounts and closed-end funds, as well as lower performance fees from certain institutional accounts.
GAAP $ 3.47 $ 4.31 $ 1.57 Seed investments 0.09 (0.12) 0.03 Accelerated vesting of restricted stock units 0.21 0.15 0.02 Lease expense - 280 Park Avenue 0.02 — — Initial public offering costs 0.31 — 1.24 Rights offering costs — — 0.24 Other non-recurring expenses — — 0.01 Foreign currency exchange (gains) losses—net (0.10) (0.01) 0.02 Tax adjustments (0.30) (0.30) (0.56) Diluted earnings per share, as adjusted $ 3.70 $ 4.03 $ 2.57 _________________________ (1) Represents amounts related to the deconsolidation of seed investments in consolidated investment vehicles as well as non-operating (income) loss from seed investments that were not consolidated.
GAAP $ 2.60 $ 3.47 $ 4.31 Seed investments—net (1) 0.05 0.09 (0.12) Accelerated vesting of restricted stock units 0.03 0.21 0.15 Lease transition and other costs - 280 Park Avenue (2) 0.20 0.02 — Closed-end fund offering costs (3) — 0.31 — Foreign currency exchange (gains) losses—net (4) 0.05 (0.10) (0.01) Tax adjustments—net (5) (0.09) (0.30) (0.30) Diluted earnings per share, as adjusted $ 2.84 $ 3.70 $ 4.03 _________________________ (1) Represents adjustment to remove the impact of consolidated investment vehicles and other seed investments from the Company's financial results.
Our organic growth rate for closed-end funds was 4.4% for the year ended December 31, 2022. Average assets under management for closed-end funds for the year ended December 31, 2022 decreased 2.3% to $12.0 billion from $12.3 billion for the year ended December 31, 2021.
Our organic decay rate for closed-end funds was (0.7%) for the year ended December 31, 2023. Changes in Assets Under Management - 2022 Compared with 2021 Assets under management at December 31, 2022 decreased 24.6% to $80.4 billion from $106.6 billion at December 31, 2021.
GAAP $ (19,041) $ 21,572 $ (1,670) Seed investments (1) 24,245 (21,858) 2,157 Foreign currency exchange (gains) losses—net (2) (4,741) (475) 871 Non-operating income (loss), as adjusted $ 463 $ (761) $ 1,358 _________________________ (1) Represents amounts related to the deconsolidation of seed investments in consolidated investment vehicles as well as non-operating (income) loss from seed investments that were not consolidated.
GAAP $ 15,774 $ (19,041) $ 21,572 Seed investments—net (1) (6,863) 24,245 (21,858) Foreign currency exchange (gains) losses—net (2) 2,371 (4,741) (475) Non-operating income (loss), as adjusted $ 11,282 $ 463 $ (761) _________________________ (1) Represents adjustment to remove the impact of consolidated investment vehicles and other seed investments from the Company's financial results.
Assets under management in subadvisory accounts excluding Japan at December 31, 2022, which represented 16.6% of institutional assets under management, decreased 21.1% to $5.4 billion from $6.8 billion at December 31, 2021. The decrease was due to market depreciation of $1.5 billion, partially offset by net inflows of $68 million. Market depreciation included $1.1 billion from global/international real estate.
The decrease was due to market depreciation of $1.5 billion, partially offset by net inflows of $68 million. Market depreciation included $1.1 billion from global/international real estate. Our organic growth rate for subadvisory accounts excluding Japan was 1.0% for the year ended December 31, 2022.
(5) Represents non-recurring expenses, which were recorded in distribution and service fees. Reconciliation of U.S. GAAP to As Adjusted Financial Results Non-operating Income (Loss) Years Ended December 31, (in thousands) 2022 2021 2020 Non-operating income (loss), U.S.
GAAP to As Adjusted Financial Results Non-operating Income (Loss) Years Ended December 31, (in thousands) 2023 2022 2021 Non-operating income (loss), U.S.
GAAP $ 350,968 $ 323,460 $ 332,479 Seed investments (1) (838) (819) (424) Accelerated vesting of restricted stock units (10,260) (7,197) (774) Lease expense - 280 Park Avenue (2) (776) — — Initial public offering costs (3) (15,239) — (60,559) Rights offering costs (4) — — (11,859) Other non-recurring expenses (5) — — (500) Expenses, as adjusted $ 323,855 $ 315,444 $ 258,363 Operating income, U.S.
GAAP $ 325,160 350,968 $ 323,460 Seed investments (1) (2,021) (838) (819) Accelerated vesting of restricted stock units (1,318) (10,260) (7,197) Lease transition and other costs - 280 Park Avenue (2) (9,721) (776) — Closed-end fund offering costs (3) — (15,239) — Expenses, as adjusted $ 312,100 $ 323,855 $ 315,444 Operating income, U.S.
The decrease was due to market depreciation of $1.7 billion and distributions of $695 million, partially offset by net inflows of $575 million. Inflows of $482 million, which included leverage, were attributable to the Company's initial public offering of the Cohen & Steers Real Estate Opportunities and Income Fund (RLTY).
Inflows of $482 million, which included leverage, were attributable to the Company's offering of the Cohen & Steers Real Estate Opportunities and Income Fund (RLTY).
The decrease in the implied annual effective fee rate was primarily due to lower performance fees for the year ended December 31, 2021.
The increase in the implied annual effective fee rate was primarily due to higher performance fees of $2.5 million for the year ended December 31, 2023 versus $636,000 for the year ended December 31, 2022.
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. We record a valuation allowance, when necessary, to reduce deferred tax assets to an amount that more likely than not will be realized.
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.
GAAP $ 215,938 $ 260,372 $ 95,057 Seed investments (1) 1,628 1,230 705 Accelerated vesting of restricted stock units 10,260 7,197 774 Lease expense - 280 Park Avenue (2) 776 — — Initial public offering costs (3) 15,239 — 60,559 Rights offering costs (4) — — 11,859 Other non-recurring expenses (5) — — 500 Operating income, as adjusted $ 243,841 $ 268,799 $ 169,454 Operating margin, U.S.
GAAP $ 164,477 $ 215,938 $ 260,372 Seed investments (1) 1,555 1,628 1,230 Accelerated vesting of restricted stock units 1,318 10,260 7,197 Lease transition and other costs - 280 Park Avenue (2) 9,721 776 — Closed-end fund offering costs (3) — 15,239 — Operating income, as adjusted $ 177,071 $ 243,841 $ 268,799 Operating margin, U.S.
Our organic growth rate for Japan subadvisory accounts was 4.9% for the year ended December 31, 2022. Average assets under management for Japan subadvisory accounts for the year ended December 31, 2022 decreased 10.0% to $9.3 billion from $10.3 billion for the year ended December 31, 2021.
Our organic growth rate for Japan subadvisory accounts was 4.2% for the year ended December 31, 2023. Assets under management in subadvisory accounts excluding Japan at December 31, 2023, which represented 16.4% of institutional assets under management, increased 6.9% to $5.7 billion from $5.4 billion at December 31, 2022.
Excluding the performance fees of $636,000 and $5.6 million, the implied annual effective fee rate would have been 36.7 bps and 36.2 bps for the years ended December 31, 2022 and 2021, respectively. • Total investment advisory and administration revenue from closed-end funds compared with average assets under management implied an annual effective fee rate of 88.6 bps and 88.4 bps for the years ended December 31, 2022 and 2021, respectively. 29 Distribution and service fees for the year ended December 31, 2022 decreased primarily due to lower average assets under management in load share classes.
Total investment advisory and administration revenue from closed-end funds compared with average assets under management implied an annual effective fee rate of 88.8 bps and 88.6 bps for the years ended December 31, 2023 and 2022, respectively.
In addition, we record current and deferred tax consequences of all transactions that have been recognized in the 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.
Such adjustments are recognized in the quarterly period in which they are determined. In addition, we record current and deferred tax consequences of all transactions that have been recognized in the consolidated financial statements in accordance with the provisions of the enacted tax laws.
Liquid seed investments—net Liquid seed investments are generally traded in active markets on major exchanges and can typically be liquidated within a normal settlement cycle. Liquid seed investments include corporate securities held directly for the purpose of establishing performance track records and the Company's economic interest in consolidated investment vehicles and are presented net of noncontrolling interests.
Liquid seed investments include corporate securities held directly for the purpose of establishing performance track records and the Company's economic interest in consolidated investment vehicles which are presented net of noncontrolling interests. Other current assets Other current assets primarily represent investment advisory and administration fees receivable.
The timing for funding the remaining portion of our commitments is determined by the investment vehicles. Dividends Subject to the approval of our Board of Directors, we anticipate paying dividends.
Dividends Subject to the approval of our board of directors, we anticipate paying dividends.
Average assets under management for closed-end funds for the year ended December 31, 2021 increased 34.8% to $12.3 billion from $9.1 billion for the year ended December 31, 2020. 28 Summary of Operating Results (in thousands, except percentages and per share data) Years Ended December 31, 2022 2021 2020 U.S.
Our organic growth rate for closed-end funds was 4.4% for the year ended December 31, 2022. 30 Summary of Operating Results (in thousands, except percentages and per share data) Years Ended December 31, 2023 2022 2021 U.S.
Distribution and service fee expenses for the year ended December 31, 2020 included expenses of $57.8 million associated with the initial public offering of PTA. Excluding these expenses, distribution and service fees for the year ended December 31, 2021 increased $18.6 million primarily due to higher average assets under management in U.S. open-end funds.
Distribution and service fee expenses decreased by $28.8 million from the year ended December 31, 2022, which included $14.2 million of costs associated with the offering of RLTY. The remainder of the decrease was primarily due to lower average assets under management in U.S. open-end funds.
Net inflows included $802 million into U.S. real estate and $603 million into global listed infrastructure, partially offset by net outflows of $1.0 billion from real assets multi-strategy (included in "Other" in the table on pages 23 and 24). Market appreciation included $5.6 billion from U.S. real estate and $3.5 billion from global/international real estate.
The increase was due to market appreciation of $508 million, partially offset by net outflows of $136 million. Net outflows included $376 million from global/international real estate, partially offset by net inflows of $169 million into U.S. real estate and $91 million into real assets multi-strategy (included in "Other" in the Assets under Management - By Investment Strategy table).
Costs are summarized in the following table: Years Ended December 31, (in thousands) 2022 2021 2020 Employee compensation and benefits $ 357 $ — $ 1,317 Distribution and service fees 14,224 — 57,818 General and administrative 658 — 1,424 Initial public offering costs $ 15,239 $ — $ 60,559 (4) Represents costs associated with the RQI rights offering, which were recorded in general and administrative expense.
Costs are summarized in the following table: Years Ended December 31, (in thousands) 2023 2022 2021 Employee compensation and benefits $ — $ 357 $ — Distribution and service fees — 14,224 — General and administrative — 658 — Closed-end fund offering costs $ — $ 15,239 $ — 36 Reconciliation of U.S.
Changes in Assets Under Management - 2022 Compared with 2021 Assets under management at December 31, 2022 decreased 24.6% to $80.4 billion from $106.6 billion at December 31, 2021. The decrease was due to net outflows of $1.6 billion, market depreciation of $20.9 billion and distributions of $3.6 billion.
The decrease was due to net outflows of $1.6 billion, market depreciation of $20.9 billion and distributions of $3.6 billion.
GAAP Revenue $ 566,906 $ 583,832 $ 427,536 Expenses (1) $ 350,968 $ 323,460 $ 332,479 Operating income $ 215,938 $ 260,372 $ 95,057 Non-operating income (loss) (2) $ (19,041) $ 21,572 $ (1,670) Net income attributable to common stockholders $ 171,042 $ 211,396 $ 76,584 Diluted earnings per share $ 3.47 $ 4.31 $ 1.57 Operating margin 38.1 % 44.6 % 22.2 % As Adjusted (3) Net income attributable to common stockholders $ 182,251 $ 197,947 $ 125,291 Diluted earnings per share $ 3.70 $ 4.03 $ 2.57 Operating margin 43.0 % 46.0 % 39.6 % _________________________ (1) Included expenses of $60.6 million associated with the initial public offering of the Cohen & Steers Tax-Advantaged Preferred Securities and Income Fund (PTA) for the year ended December 31, 2020.
GAAP Revenue $ 489,637 $ 566,906 $ 583,832 Expenses $ 325,160 $ 350,968 $ 323,460 Operating income $ 164,477 $ 215,938 $ 260,372 Non-operating income (loss) (1) $ 15,774 $ (19,041) $ 21,572 Net income attributable to common stockholders $ 129,049 $ 171,042 $ 211,396 Diluted earnings per share $ 2.60 $ 3.47 $ 4.31 Operating margin 33.6 % 38.1 % 44.6 % As Adjusted (2) Net income attributable to common stockholders $ 140,511 $ 182,251 $ 197,947 Diluted earnings per share $ 2.84 $ 3.70 $ 4.03 Operating margin 36.2 % 43.0 % 46.0 % _________________________ (1) Included amounts attributable to third-party interests in consolidated investment vehicles.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe following table summarizes the effect of a ten percent increase or decrease on the carrying value of our seed investments, which are presented net of noncontrolling interests, if any, as of December 31, 2022 (in thousands): Carrying Value Notional Value - Hedges Net Carrying Value Net Carrying Value Assuming a 10% increase Net Carrying Value Assuming a 10% decrease Liquid seed investments—net $ 67,987 $ (33,637) $ 34,350 $ 37,785 $ 30,915 Illiquid seed investments—net $ 15,076 $ — $ 15,076 $ 16,584 $ 13,568 40
Biggest changeThe following table summarizes the effect of a ten percent increase or decrease on the carrying value of our seed investments, which are presented net of noncontrolling interests, if any, as of December 31, 2023 (in thousands): Carrying Value Notional Value - Hedges Net Carrying Value Net Carrying Value Assuming a 10% increase Net Carrying Value Assuming a 10% decrease Liquid seed investments—net $ 71,375 $ (37,933) $ 33,442 $ 36,786 $ 30,098 Illiquid seed investments—net $ 16,749 $ — $ 16,749 $ 18,424 $ 15,074 42
Item 7A. Quantitative and Qualitative Disclosures About Market Risk In the normal course of our business, we are exposed to risk as a result of changes in interest and currency rates, securities markets and general economic conditions including inflation, which may have an adverse impact on the value of our assets under management and our seed investments.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk In the normal course of our business, we are exposed to risk as a result of changes in interest and currency rates, securities markets and other general economic conditions including inflation, which may have an adverse impact on the value of our assets under management and our seed investments.
The economic environment may also preclude us from increasing the assets we manage in closed-end funds. The market conditions for these offerings may not be as favorable in the future, which could adversely impact our ability to grow the assets we manage.
The economic environment may also preclude us from increasing the assets we manage in closed-end funds. The market conditions for these offerings may not be favorable in the future, which could adversely impact our ability to grow the assets we manage.

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