Cohen & Steers Inc

Ladies and gentlemen, thank you for standing by. Welcome to the Cohen and Steers Third Quarter 2025 Earnings Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have a question, please press the star followed by the one on your telephone. If at any time during the conference you need to reach an operator, please press star zero. As a reminder, this conference call is being recorded Friday, October 17, 2025. I would now like to turn the conference over to Brian Heller, Senior Vice President and Deputy General Counsel of Cohen and Steers. Please go ahead.

Thank you, and welcome to the Cohen and Steers Third Quarter 2025 Earnings Conference Call. Joining me are Joe Harvey, our Chief Executive Officer, Raja Dhikori, our Chief Financial Officer, and John Shea, our President and Chief Investment Officer. I want to remind you that some of our comments and answers to your questions may include forward-looking statements. We believe these statements are reasonable based on information currently available to us, but actual outcomes could differ materially due to a number of factors, including those described in our accompanying third quarter earnings release and presentation, our most recent annual report on Form 10-K, and our other SEC filings. We assume no duty to update any forward-looking statements. Further, none of our statements constitute an offer to sell or the solicitation of an offer to buy the securities of any fund or other investment vehicle. Our presentation also contains non-GAAP financial measures referred to as adjusted financial measures that we believe are meaningful in evaluating our performance. These non-GAAP financial measures should be read in conjunction with our GAAP results. A reconciliation of these non-GAAP financial measures is included in the earnings release and presentation to the extent reasonably available. The earnings release and presentation, as well as links to our SEC filings, are available in the investor relations section of our website at www.cohenandsteers.com. With that, I'll turn the call over to Raja.

Thank you, Brian, and good morning, everyone. My remarks today will focus on our as-adjusted results. Yesterday, we reported earnings of $0.81 per share compared to $0.73 sequentially, representing an increase of 11.6% versus Q2. Key highlights for the quarter include meaningful revenue growth driven by higher AUM combined with a stable effective rate. Expense management and discipline with revenue growth outpacing expense growth. Expanded operating margins as compared to both the prior quarter and prior year's quarter. Net inflows during the period. A multi-year high in our one but unfunded pipeline resulting from investment performance and our focus on sales and distribution. And lastly, a strong balance sheet with high levels of liquidity and no leverage enabling us to be opportunistic. Now back to the detailed results. Revenue for Q3 increased 4.2% from the prior quarter to 141 million. The change in revenue from the prior quarter was driven by higher average AUM plus an additional day during the period. Our effective fee rate was 59 basis points in line with the prior quarter. Our operating margin increased meaningfully to 36.1% compared to 33.6% in Q2. As noted, we experienced higher average AUM compared to the prior quarter. In addition, ending AUM increased to 90.9 billion as of Q3. AUM was positively impacted by both market appreciation as well as net inflows. Net inflows into our open-end funds were partially offset by institutional net outflows. Our open-end funds have experienced positive net flows in the last five consecutive quarters. Joe Harvey will provide additional insights regarding our flows and pipelines. Total expenses during Q3 were essentially flat to the prior quarter due to several drivers. G&A expenses decreased meaningfully versus the prior quarter. G&A was lower across areas including talent acquisition and travel costs. While compensation and benefits increased during the quarter, the change in comp and benefits was below the change in revenue. As a result, our compensation ratio for the quarter was lower. This has driven our year-to-date compensation ratio down to 40.25%. Lastly, on expenses, distribution and service fees were impacted by higher average AUM in our open-end funds. Regarding taxes, our effective rate was lower for the quarter. resulting in our year-to-date rate being 25.1%. Our earnings material presents liquidity at the end of Q3 and prior quarters. Our liquidity totaled $364 million at quarter end, which compares positively to $323 million in the prior quarter. Let me now touch on a few items regarding full year 2025 guidance. With respect to comp and benefits for 2025, we expect our compensation ratio to remain at 40.25% for the full year. We expect full year G&A increase of around 9% compared to full year 2024. This full year G&A increase has been primarily driven by talent acquisition and business development costs incurred in the first half of the year. Also impacting G&A this year have been expenses such as marketing and related costs for our active ETF launch. We remain focused on expense management and will be disciplined, but balanced as we see investment opportunities in our business. In 2026, we expect annual G&A changes to moderate from this year's growth levels to being in the mid-single-digit percentage range. Lastly, we expect our effective tax rate to remain at 25.1% on an as-adjusted basis. I'll now turn it over to John Che, who will discuss investment performance.