Final CNS AR 2020 - Flipbook - Page 47
2019 Compared with 2018
Revenue
Years Ended December 31,
(in thousands)
2019
Institutional accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Open-end funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Closed-end funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment advisory and administration fees . . . . . . . . . . . . .
Distribution and service fees . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
110,346
187,730
80,502
378,578
30,048
2,204
410,830
2018 (1)
$
$
104,327
168,273
77,270
349,870
29,090
2,151
381,111
$ Change
$
$
% Change
6,019
19,457
3,232
28,708
958
53
29,719
5.8
11.6
4.2
8.2
3.3
2.5
7.8
%
%
%
%
%
%
%
_________________________
(1) Amounts related to model-based portfolios were reclassified from other (previously reported as portfolio consulting and other) to
investment advisory and administration fees.
Revenue for the year ended December 31, 2019 increased primarily attributable to higher average assets under
management in all three investment vehicles.
•
Total investment advisory revenue compared with average assets under management in institutional accounts
implied an annual effective fee rate of 36.4 bps and 36.1 bps for the years ended December 31, 2019 and 2018,
respectively.
•
Total investment advisory and administration revenue compared with average assets under management in
open-end funds implied an annual effective fee rate of 68.0 bps and 69.3 bps for the years ended December 31,
2019 and 2018, respectively. The decrease in the annual effective fee rate is primarily due to a reduction of the
investment advisory fee rate and higher fund reimbursements related to the imposition of an expense cap
effective July 1, 2019 by Cohen & Steers Realty Shares, Inc.
•
Total investment advisory and administration revenue compared with average assets under management in
closed-end funds implied an annual effective fee rate of 85.8 bps and 85.7 bps for the years ended December 31,
2019 and 2018, respectively.
Expenses
Years Ended December 31,
(in thousands)
2019
Employee compensation and benefits . . . . . . . . . . . . . . . . . . . . . $
Distribution and service fees . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . .
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
143,431
55,237
47,632
4,396
250,696
2018
$
$
131,292
50,043
48,265
4,473
234,073
$ Change
$
$
12,139
5,194
(633)
(77)
16,623
% Change
9.2 %
10.4 %
(1.3)%
(1.7)%
7.1 %
Employee compensation and benefits for the year ended December 31, 2019 increased primarily due to higher incentive
compensation of $4.8 million, higher amortization of restricted stock units of $3.5 million and higher salaries of $2.0 million.
Distribution and service fees expense for the year ended December 31, 2019 increased primarily due to higher average
assets under management in U.S. open-end funds of approximately $3.8 million and an increase in sub-transfer agent fees on
certain assets by one of the Company's intermediaries of approximately $2.3 million, partially offset by the impact of
redemptions from a higher cost intermediary of approximately $1.0 million.
General and administrative expenses for the year ended December 31, 2019 decreased primarily due to expenses of
approximately $871,000 associated with the evaluation of a potential business transaction that the Company did not pursue
that were included in the year ended December 31, 2018, partially offset by costs associated with the RQI rights offering of
approximately $346,000 as well as higher professional fees of approximately $100,000 for the year ended December 31,
2019.
Operating Margin
Operating margin for the year ended December 31, 2019 increased to 39.0% from 38.6% for the year ended
December 31, 2018.
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