Cohen & Steers reported strong operational metrics for Q1 2026, with a compensation ratio of 40% and liquidity of $343 million, down from the previous quarter due to incentive payouts. Notably, 86% of assets under management (AUM) outperformed benchmarks over the past year, and 95% of open-end fund AUM received high ratings from Morningstar. The firm also experienced positive net inflows of $497 million, driven by robust demand for multi-strategy real assets and preferred securities.
This performance highlights a favorable environment for real assets, with diversified real assets rising 12% in the quarter. However, the firm cautioned that inflationary pressures and geopolitical tensions could impact future asset allocations. Management emphasized the importance of adapting to a more capital-intensive world, forecasting consumer inflation to average 3% annually over the next decade, significantly above the Federal Reserve’s target.
Investors should consider diversifying their portfolios to include hard assets and real assets, as these sectors are poised to benefit from ongoing structural changes in the economy.
Source: fool.com