Cohen & Steers expects to launch its new active ETFs next year while leaning into its private real estate, particularly through its non-traded real estate investment trust, executives said at the $91.8 billion real assets firm’s earnings call.
"Investors now want to invest in vehicles that they prefer, and the flows into ETF are starting to validate that" for active ETFs, said Joseph Harvey, chief executive officer and president of Cohen & Steers, during the Oct. 17 earnings call.
"So we are going to lead with our core strategies, one in real estate and one in preferreds (preferred equity). ... It will help us reach investors who have shifted their preferences to that vehicle."
Cohen & Steers, a firm that earlier in its history had been known as a REIT manager, is also focusing on its private real estate, especially its private REIT.
"Our non-traded REIT is one of the things we are most excited about,” Harvey said.
Firm executives are focusing its investment in private real estate on “taking advantage of repriced real estate, particularly shopping centers, where we see attractive cash yields coupled with underappreciated future growth prospects,” he said.
In addition, the firm is including listed real estate to complement the private allocation in its non-traded REIT, which Harvey said "has not really been done to the extent that it should be."
"In other words, other non-trade REIT managers think about having a sleeve to provide liquidity and invest in CMBS or other fixed income,” Harvey said. "But we use our active listed real estate team to complement what we're doing on the private side of the portfolio."
The firm reported preliminary assets under management of $91.8 billion as of Sept. 30.
