Final CNS AR 2020 - Flipbook - Page 35
Item 7. 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 and the impact of the ongoing COVID-19 pandemic on the current economic environment and our business.
You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,”
“may,” “should,” “seeks,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative versions of these words or
other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there
are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these
forward-looking statements. We believe that these factors include, but are not limited to, the risks described in Item 1A. Risk
Factors of this Annual Report on Form 10-K. These factors are not exhaustive and should be read in conjunction with the
other cautionary statements that are included in this Annual Report on Form 10-K. We undertake no obligation to publicly
update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
Cohen & Steers, Inc. (CNS), a Delaware corporation formed in 2004, and its subsidiaries are collectively referred to as
the Company, we, us or our.
We are a global investment manager specializing in liquid real assets, including real estate securities, listed
infrastructure and natural resource equities, as well as preferred securities and other income solutions. 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 securities, preferred securities and low duration preferred
securities, global/international real estate securities, global listed infrastructure, real assets multi-strategy, midstream energy
and MLPs, and global natural resource equities. Our strategies seek to achieve a variety of investment objectives for different
risk profiles and are actively managed by specialist teams of investment professionals who employ fundamental-driven
research and portfolio management processes. We offer our strategies through a variety of investment vehicles, including
U.S. and non-U.S. registered funds and other commingled vehicles, separate accounts, and subadvised portfolios.
Our distribution network encompasses two major channels, wealth management and institutional. Our wealth
management 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 revenue is derived from fees received from our clients, including fees for managing or subadvising client accounts
as well as investment advisory, administration, distribution and service fees received from Company-sponsored open-end and
closed-end funds. Our fees are based on contractually specified rates applied to the value of the assets we manage and, in
certain cases, investment performance. Our revenue fluctuates with changes in the total value of our assets under
management, which may occur as a result of market appreciation and depreciation, contributions or withdrawals from
investor accounts and distributions. This revenue is recognized over the period that the assets are managed.
A majority of our revenue, 92.4%, 92.1% and 91.8% for the years ended December 31, 2020, 2019 and 2018,
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.
We are continuously managing and evaluating our strategy and response to the COVID-19 pandemic. During the first
quarter of 2020, we activated our Business Continuity Plan and the majority of our employees worldwide continue to work
from home and will do so for the foreseeable future. Ongoing business operations, including investment, trading, finance,
operational and client service capabilities have not been materially impacted as a result of the ongoing COVID-19 pandemic;
however, there is no assurance that they will not be impacted in future periods. We have also altered our travel policy,
suspending all domestic and international air travel, and are leveraging our IT infrastructure to conduct virtual meetings with