Cohen & Steers, Inc. (CNS): PESTLE Analysis [Nov-2025 Updated]

You're trying to figure out if Cohen & Steers, Inc. (CNS) can navigate the 2025 landscape, and the short answer is that the macro-environment presents both a huge opportunity and a significant compliance headache. As a specialist in real assets like listed real estate and infrastructure, CNS is defintely exposed to every shift in Federal Reserve rate policy and new SEC climate-related disclosure rules, which will increase their operational burden this year. But the upside is huge: if they execute their political and investment strategy well, they stand to capture an estimated $12.3 billion in new Assets Under Management (AUM) from the institutional shift into listed infrastructure alone. We need to map these six external forces-Political, Economic, Sociological, Technological, Legal, and Environmental-to see where the firm needs to focus its capital and attention right now.

Cohen & Steers, Inc. (CNS) - PESTLE Analysis: Political factors

Global trade tensions directly impact infrastructure asset valuations.

You can't look at Cohen & Steers, Inc.'s core business-listed infrastructure and real assets-without seeing the shadow of global trade tensions. The new administration's 'America First' policies have led to a sharp escalation in tariffs. For example, tariffs on Chinese goods have been significantly increased since January 2025, with some rates escalating from 30% to a staggering 104%, pushing the total burden on many products close to 120% when factoring in previous measures.

This isn't just about consumer goods; it directly affects the cost and valuation of infrastructure projects. Higher tariffs mean increased costs for steel, solar components, and other materials essential for building data centers, transmission lines, and ports-all key investment areas for Cohen & Steers. Still, for an asset manager specializing in real assets, this geopolitical risk also creates an opportunity. Infrastructure assets are increasingly viewed as a defensive play, offering stability and resilience against the volatility that trade wars inject into the broader public equity markets.

US-China regulatory divergence affects cross-border capital raising.

The regulatory split between the U.S. and China is widening, creating a complex environment for cross-border capital flows. This divergence impacts Cohen & Steers' global operations, which include offices in Hong Kong and Singapore. In September 2025, the U.S. Securities and Exchange Commission (SEC) formed a new Cross-Border Task Force specifically to increase scrutiny on foreign-based issuers, with a notable focus on China and Hong Kong.

This action, aligning with the 'America First Investment Policy' issued in February 2025, signals a clear intent to protect U.S. capital markets from opaque foreign actors. Plus, the U.S. enacted the world's first comprehensive outbound investment regime in January 2025, which formalizes oversight of certain U.S. investments into critical Chinese sectors like semiconductors and artificial intelligence. This means a U.S. institutional investor base, which held approximately $250 billion in U.S.-listed Chinese equities as of May 2025, is now operating under a much tighter, security-focused regulatory framework. That's a huge pool of capital where compliance risk just went way up.

Tax policy uncertainty around capital gains and corporate rates post-2024 election.

The biggest near-term political risk for your clients is the looming tax policy cliff. The core provisions of the 2017 Tax Cuts and Jobs Act (TCJA) are set to expire at the end of 2025. This creates massive uncertainty for high-net-worth investors and corporations, which are the lifeblood of an asset manager like Cohen & Steers.

Here's the quick math on the potential shifts:

If capital gains taxes rise to 28% for high earners, it could trigger a rush of asset sales in late 2025 to lock in the lower rate, or it could incentivize a shift toward tax-advantaged products like municipal bonds or tax-efficient real asset strategies. This uncertainty complicates all long-term financial planning for Cohen & Steers' clients.

Increased government spending on infrastructure creates new investment opportunities.

The political commitment to infrastructure spending, regardless of the administration, is a clear tailwind for Cohen & Steers. The U.S. still faces an estimated infrastructure funding gap of $3.7 trillion between 2024 and 2033, and private capital is essential to fill it. This gap is driving an infrastructure supercycle.

The firm is exceptionally well-positioned to capitalize on the shift toward real assets, as evidenced by its strong Q3 2025 performance, which saw net inflows of $233 million and ending Assets Under Management of $90.9 billion.

The primary opportunities stem from politically-supported secular trends:

• Digital Infrastructure: Driven by AI and cloud computing, data center investments are projected to reach $400 billion annually by 2025 globally.
• Energy Transition: Continued public and private investment in green energy projects, despite policy uncertainty around specific incentives.
• Supply Chain Resilience: Nearshoring and industrial onshoring are boosting demand for new logistics construction, freight railways, and ports in the U.S.

The political will to fund these areas is defintely strong, creating a deep pipeline of investable assets for the firm's strategies.

Cohen & Steers, Inc. (CNS) - PESTLE Analysis: Economic factors

Federal Reserve's interest rate trajectory dictates real asset borrowing costs.

The Federal Reserve's monetary policy has been the single most dominant economic factor for Cohen & Steers, given its specialization in real assets like real estate and infrastructure. After maintaining the federal funds rate at a high range of 5.25%-5.5% through late 2024, the Fed pivoted to a more accommodative stance. By late 2025, the market is pricing in a target federal funds rate of approximately 3.9% to 4.25%, a significant drop from the peak. This projected easing, which includes an expected 0.50 percentage points in cuts during 2025, is a direct tailwind for real asset valuations. Lower borrowing costs make new acquisitions more feasible, and they reduce the refinancing risk for existing property and infrastructure holdings. For example, the 10-year Treasury yield, a key benchmark for commercial real estate financing, was still elevated at about 4.3% as of June 2025, but the expectation of further cuts should help lower this long-term rate. Lower rates also make the high-income distributions from listed real assets more attractive relative to fixed-income alternatives.

Inflation persistence drives demand for real assets as a hedge.

Inflation remains a persistent risk, which strengthens the investment thesis for Cohen & Steers' core products. The US Consumer Price Index (CPI) was running at an annual rate of 2.4% in May 2025, with Core CPI at 2.8%, both still above the Federal Reserve's long-term 2% target. This 'sticky' inflation environment, driven by factors like deglobalization and the energy transition, has convinced many asset allocators that the long-term equilibrium inflation rate will be higher than pre-pandemic levels. This is a defintely positive structural driver for real assets, as their revenues (like rental income and toll fees) are often linked to inflation, providing a critical hedge against the erosion of purchasing power. The firm's ability to offer strategies focused on listed real estate, infrastructure, and commodities directly addresses this fundamental investor need to preserve real wealth.

Global GDP growth slowdown may pressure listed real estate occupancy rates.

A global economic slowdown presents a near-term risk to the fundamentals of the underlying assets in Cohen & Steers' portfolios. The International Monetary Fund (IMF) revised its global GDP growth forecast for 2025 down to 2.8% (as of May 2025), with the US forecast lowered to 1.2%. This deceleration in economic activity can translate directly into pressure on occupancy and rental growth for commercial real estate. While the global office leasing market saw robust activity in North America, with leasing at its highest level in six years, the industrial sector is expected to see a peak in vacancy rates in 2025. This uneven growth means the firm must be highly selective in its global exposure.

Here's the quick math on the firm's recent flow trend, showing how market appreciation is currently outweighing net outflows in some periods, but a growth slowdown could reverse this:

Strong dollar creates headwinds for international investment returns.

The performance of the US Dollar Index (DXY) directly affects the reported returns of Cohen & Steers' substantial international holdings. A strong dollar acts as a headwind, reducing the value of foreign-currency-denominated investment returns when converted back to US dollars. However, in the first half of 2025 (1H25), the DXY index actually fell by 10.7%, which served as a significant tailwind for international asset returns. For instance, 10% of the MSCI EAFE's year-to-date return of 22% was attributed to this weaker dollar effect. As of early November 2025, the DXY was trading near 99.0, with forecasts split between a late-Q4 rebound toward the 107-108 range or continued softness in the 96-99 band. A rebound in the dollar would immediately pressure the returns on foreign assets for US-based investors, making the firm's global strategies less attractive in the near term.

Market volatility increases demand for defensive, income-focused strategies.

The elevated geopolitical and economic uncertainty in 2025 has amplified market volatility, which typically increases investor demand for defensive, income-focused strategies-a core competency of Cohen & Steers. The firm's focus on assets that generate consistent cash flows, such as listed preferred securities and infrastructure, positions it well to capture flows from risk-averse investors. The Q3 2025 net inflows of $233 million suggest that, despite a brief reversal in Q2, capital is still rotating into these more stable asset classes. This demand is driven by a few key factors:

• Seeking higher yields than traditional fixed income offers.
• The need for diversification away from volatile equity markets.
• Preference for assets with contractual, inflation-linked cash flows.

What this estimate hides is that while volatility drives demand for defensive assets, extreme market shocks can still trigger client redemptions and net outflows, as seen in the Q2 2025 net outflows of $131 million. You need to watch the pace of new product launches in alternative income to capitalize on this defensive demand.

Cohen & Steers, Inc. (CNS) - PESTLE Analysis: Social factors

Growing retail investor demand for income-producing, tangible assets

The retail investor landscape is fundamentally shifting, creating a strong tailwind for Cohen & Steers' core focus on real assets and alternative income. Retail investors now constitute approximately 20.5% of daily U.S. equity trading volume in mid-2025, a significant increase from a decade ago. This growing segment is actively seeking investments that offer tangible value and steady cash flow, moving beyond pure growth stocks.

In 2025, real estate has cemented its place, representing about 20% of the average retail portfolio, driven by the desire for inflation-resistant holdings. Furthermore, 38% of retail investors specifically favor dividend-paying stocks as a strategy for steady income. This preference directly benefits Cohen & Steers' product lineup, which specializes in real estate investment trusts (REITs) and infrastructure funds. For instance, U.S. retail investment volume in Q1 2025 grew 13% year-over-year, with grocery-anchored centers-a core real asset-accounting for 31% of total multi-tenant retail transaction volume. That's a clear signal: investors want assets they can see and that pay them reliably.

Demographic shift to retirement increases need for stable dividend-paying funds

The aging U.S. population, often referred to as the Silver Tsunami, is driving a structural demand for stable, income-generating investments. With men at age 65 having a 43% chance to live to age 90, planning for 25-30 years of retirement income is now the norm, making longevity risk a primary concern for near-retirees.

This demographic, typically aged 50+, is actively pivoting toward income-generating assets like REITs, Business Development Companies (BDCs), and Master Limited Partnerships (MLPs) to secure stability while fighting inflation. Cohen & Steers, with its specialization in these areas, is well-positioned to capture these flows. The firm's own stock reflects this focus, with an annual dividend of $2.48 per share and a yield between 3.83% and 4.16% as of November 2025, making it attractive to income-focused shareholders. In fact, a 2025 retirement study found that stable-value funds are more popular among older participants in defined contribution plans than the default target-date funds (TDFs).

Public scrutiny on executive compensation and fee structures remains high

Asset managers face persistent public and regulatory pressure to ensure executive pay is clearly linked to long-term performance and that fund fees are transparent and justifiable. The Securities and Exchange Commission (SEC) is actively rethinking executive compensation disclosures in 2025, emphasizing the need for plain-English, investor-friendly communication.

Shareholder advisory firms are also scrutinizing pay-for-performance alignment closely. For the 2026 proxy season, the Investment Association (IA) is looking for clear and detailed explanations of pay decisions. This focus means Cohen & Steers must be defintely prepared to articulate how its management fee structure delivers value, especially given its preliminary net outflows of $213 million in January 2025 and $81 million in September 2025, despite a strong net inflow of $1.1 billion in October 2025. The challenge is proving value beyond market appreciation when flows are inconsistent.

Here's the quick math on the firm's dividend stability versus earnings:

Focus on social equity in infrastructure projects (e.g., affordable housing)

Social equity, particularly in the context of the affordable housing crisis, is becoming a key factor in how institutional investors deploy capital into real assets and infrastructure. This trend aligns perfectly with Cohen & Steers' expertise in real estate and infrastructure, but it adds a social performance layer to traditional financial metrics.

Affordable housing is increasingly viewed as a resilient asset class where financial performance and social impact are inherently linked. Investment is growing: over 52% of affordable housing executives reported significant growth in debt and equity investments in 2025 compared to 2023. The industry consensus is clear, with more than 89% of survey respondents agreeing on the urgent need for zoning reform and increased resources to boost housing affordability.

For Cohen & Steers, this means integrating social impact into investment decisions, such as:

• Prioritizing infrastructure projects with clear community benefits.
• Investing in real estate that incorporates affordable housing units.
• Supporting mixed-use developments that promote social and economic diversity.

The firm must demonstrate how its investments in listed and private real estate and infrastructure contribute positively to social equity outcomes, not just shareholder returns.

Cohen & Steers, Inc. (CNS) - PESTLE Analysis: Technological factors

Digitalization of asset management reduces operating costs; CNS must defintely invest here.

The imperative for digitalization is simple: cut costs and scale operations without sacrificing precision. The asset management industry is seeing significant operational efficiency gains, with some firms reporting up to a 50% reduction in operational resources through workflow automation and system consolidation. For Cohen & Steers, Inc., maintaining a strong operating margin-which was 36.1% (as-adjusted) in Q3 2025-requires continuous technological investment to counter fee compression and rising regulatory expenses. The firm's total expenses were approximately $92.819 million in Q3 2025, so even a modest percentage reduction in administrative overhead translates to millions in savings.

You can't afford to let legacy systems drag down your profitability. Industry data shows that 65% of asset managers have already reported increased operational efficiency from digital tools. This isn't a future trend; it's the current cost of doing business.

• 72% of asset managers expect automation to significantly reduce client servicing costs.
• 45% of managers anticipate client onboarding time will drop by over 40% using digital processes.
• Digital transformation is a key driver of innovation for 66% of asset managers.

AI-driven portfolio construction enhances risk modeling for real assets.

Cohen & Steers' specialization in real assets-like real estate and infrastructure-makes it a prime candidate for Artificial Intelligence (AI) adoption, especially in risk modeling and predictive analytics. The market for AI-powered portfolio management is surging, growing at an annual rate of 23.7%, which is more than double the overall real estate portfolio management market growth. AI models can process the vast, complex, and often illiquid data of real assets far faster than human analysts, detecting risk patterns before they become problems.

In real estate, specifically, AI-led automation is already yielding a 15-25% decrease in operational costs. While CNS does not disclose its specific AI spending, the industry is ramping up, with asset managers planning to increase their AI spending by an average of 28%. Furthermore, Cohen & Steers recently raised $353 million in equity for its closed-end Cohen & Steers Infrastructure Fund (UTF), which, combined with leverage, provides over $500 million in dry powder specifically to allocate to global infrastructure opportunities, including the 'digital transformation of economies.' That's a clear, massive capital commitment to the digital theme.

Increased use of blockchain for fund tokenization (fractional ownership).

The use of blockchain technology for fund tokenization (converting ownership rights into a digital token on a blockchain) is a significant opportunity for Cohen & Steers to enhance liquidity and expand access to its real asset strategies. Tokenization enables fractional ownership, which is especially powerful for illiquid assets like private real estate and infrastructure, democratizing investment.

The firm is defintely aware of this trend, having hosted a panel discussion on tokenized funds at a Cohen Client Conference in May 2025, highlighting the benefits of fast, low-risk settlement and enhanced middle-office efficiency. Blockchain facilitates near-instantaneous settlement, eliminating traditional trade date/settlement date delays, which is a massive efficiency boost. This technology could be key to scaling the firm's non-listed REIT, Cohen & Steers Income Opportunities REIT, and other private market offerings by offering a new level of transparency and security.

Cybersecurity threats to proprietary client data and trading systems.

As Cohen & Steers increases its reliance on digital platforms and cloud-based solutions-a trend where 87% of asset managers are already leveraging cloud platforms-the threat of a major cyberattack rises proportionally. Cybersecurity is no longer just an IT issue; it's a fundamental business risk that can lead to significant financial and reputational damage. 72% of asset managers view cyber threats as a major concern in their digital transformation journey.

Protecting proprietary client data and ensuring the integrity of trading systems requires substantial, continuous investment. The industry is responding to this risk, with a high percentage of firms-87%-making moderate or large-scale investments into advanced analytics and cybersecurity technology. A failure to invest adequately could result in the loss of sensitive data, associated fines, and a loss of client trust that would directly impact the firm's $90.9 billion in Assets Under Management as of September 30, 2025. The cost of underspending on security protections can lead to a sudden, unplanned expense to upgrade systems, which is the worst kind of surprise.

Cohen & Steers, Inc. (CNS) - PESTLE Analysis: Legal factors

SEC's new climate-related disclosure rules increase compliance burden significantly in 2025.

You're an asset manager, so new disclosure rules mean new costs, period. The SEC's final Climate-Related Disclosure Rule, adopted in March 2024, is kicking off its earliest compliance phase for large accelerated filers with annual reports for the fiscal year ending December 31, 2025. Cohen & Steers, Inc. (CNS), as a publicly traded company, falls squarely into this compliance timeline.

What this means is a significant, new administrative and legal burden. You must now disclose material climate-related risks and their actual or reasonably likely material impact on your strategy, business model, and outlook. Plus, you'll need to disclose the oversight and governance of those risks by the board and management. This isn't just a simple filing; it requires establishing new internal controls, gathering new data, and getting assurance on certain disclosures.

Here's the quick math on the compliance lift:

• Disclose material Scope 1 and Scope 2 Greenhouse Gas (GHG) emissions, subject to assurance requirements.
• Provide new financial statement footnote disclosures, including the financial impacts of severe weather events and other natural conditions, if they exceed a certain threshold.
• Disclose material expenditures on climate risk mitigation.

What this estimate hides is the complexity for a specialist like Cohen & Steers, Inc. in real assets. Their focus on listed real estate, infrastructure, and preferred securities means their portfolio companies are often in sectors with high physical and transition risk, making the materiality assessment for disclosure defintely more complex.

Stricter fiduciary standards on investment advisors raise operational risk.

The Securities and Exchange Commission (SEC) is turning up the heat on fiduciary duty, and for a specialist manager like Cohen & Steers, Inc., this raises operational risk. The SEC's 2025 examination priorities are laser-focused on whether investment advice satisfies an adviser's duties of care and loyalty.

They are specifically scrutinizing advice related to six key areas, and several of these hit Cohen & Steers, Inc.'s core business model head-on:

• High-cost products.
• Unconventional investments.
• Illiquid assets (like private real estate and infrastructure).
• Assets that are difficult to value.

The operational challenge is proving that the higher fees often associated with specialized, illiquid assets are justified and that the valuation methodologies are robust and transparent. The proposed Department of Labor (DOL) fiduciary rule also adds pressure, as critics warn the increased compliance costs will disproportionately affect smaller advisory firms, limiting their ability to compete with larger institutions. You need to be able to defend every fee and every valuation with iron-clad documentation.

Global anti-money laundering (AML) and 'Know Your Customer' (KYC) regulations are tightening.

AML and KYC are undergoing a coordinated global reset in 2025, moving from a check-the-box exercise to a real-time, technology-driven mandate. The global spend on AML/KYC data and services is projected to be around $2.9 billion in 2025. This massive investment is driven by a regulatory push for greater transparency and sharper enforcement across the UK, USA, and EU.

For a global investment manager like Cohen & Steers, Inc., the tightening beneficial ownership rules are a major compliance headache. The Financial Action Task Force (FATF) is strengthening its directives on beneficial ownership transparency, compelling financial institutions to enhance due diligence. In the US, FinCEN is modernizing its rules, and in the UK, the Register of Overseas Entities (OER) is entering a new phase, making trust information publicly accessible from August 31, 2025.

Compliance is shifting to a tech-first approach, which requires capital expenditure on RegTech solutions:

Antitrust scrutiny on large asset managers could indirectly affect smaller players like CNS.

While Cohen & Steers, Inc. is a specialized firm with preliminary Assets Under Management (AUM) of $90.6 billion as of October 31, 2025, the intense antitrust scrutiny on the 'Big Three' asset managers (BlackRock, Vanguard, State Street) has ripple effects across the industry. The Department of Justice (DOJ) and Federal Trade Commission (FTC) are raising concerns that these large firms' collaborative efforts on ESG policies, such as 'Net Zero' initiatives, could violate the Sherman Act and Clayton Act by restricting competition.

This scrutiny creates a climate of regulatory uncertainty around industry-wide collaboration. Any collective action or public pledge by asset managers-even on social concerns-is now under a legal microscope. For smaller players, this means: you must be very careful about participating in industry consortia or initiatives that could be construed as anticompetitive, even if the goal is benign, like promoting sustainability.

Also, the heightened antitrust focus on M&A activity, as seen with the review of mega-mergers, suggests a tougher path for industry consolidation. Since M&A is a common growth and exit strategy, a more rigorous antitrust environment could complicate future strategic options for Cohen & Steers, Inc. as they look to expand their specialized real assets platform.

Cohen & Steers, Inc. (CNS) - PESTLE Analysis: Environmental factors

The Environmental factors for Cohen & Steers, Inc. (CNS) in 2025 present a clear duality: a massive, multi-trillion-dollar opportunity in listed infrastructure driven by the energy transition, but also a significant, near-term risk to the core real estate portfolio from physical climate change.

Your strategy must be to aggressively capture the decarbonization tailwind while actively stress-testing and mitigating the climate-driven devaluation threat to your property holdings. The firm's specialization in real assets means these environmental shifts are not abstract policy debates; they are immediate, material financial drivers.

Transition to Net Zero creates tailwinds for listed renewable infrastructure.

The global shift toward Net Zero emissions is a powerful, long-term secular tailwind for Cohen & Steers' Global Listed Infrastructure portfolio, which accounts for approximately 11.3% of the firm's Assets Under Management (AUM) as of mid-2025. This transition requires unprecedented capital deployment into utilities, transmission, and digital infrastructure.

Here's the quick math on the opportunity: If CNS can capture just 15% of the projected 2025 institutional capital flow into US listed infrastructure, that translates to an estimated $12.3 billion in new Assets Under Management (AUM), assuming a total market flow of $82 billion. That's a powerful incentive to get the political and regulatory strategy right.

Globally, clean energy spending is now outpacing fossil fuel investments at a ratio close to 2:1, confirming the capital shift is already underway. This trend is creating a utilities super-cycle in the US, where long-term annual earnings growth rates for utilities are expected to increase from a historical 4%-6% range to a new range of 5%-8%, driven by the need for grid modernization and renewable energy interconnection.

CNS's exposure to listed infrastructure benefits from global decarbonization efforts.

CNS is uniquely positioned because its infrastructure exposure is focused on the assets that enable the energy transition and digitalization. The total investment required for North American power and digital infrastructure alone is estimated to be in the range of $10 trillion to $20 trillion over the next decade, a massive pool of capital that listed infrastructure companies will access.

The firm's listed infrastructure holdings offer investors a liquid way to participate in this massive, multi-year buildout. Listed infrastructure assets are benefiting from the structural demand for:

• Grid modernization and resilience.
• New transmission capacity for renewables.
• Digital infrastructure (data centers, fiber) to support AI demand.

Physical climate risks (flooding, fires) threaten real estate asset value.

The most significant environmental risk to CNS is the physical climate threat to its core business: real estate. The firm's total real estate exposure-U.S. and Global/International-makes up approximately 65.1% of its AUM, or about $59.2 billion based on the September 30, 2025 AUM of $90.9 billion. This concentration is directly exposed to increasing climate volatility.

A February 2025 study projects that climate-related risks could erase a staggering $1.47 trillion in unadjusted U.S. real estate value over the next 30 years, primarily due to soaring insurance costs and shifting demand. The immediate impact is on migration: an estimated 5.2 million Americans are expected to voluntarily relocate in 2025 to areas less susceptible to climate risk, directly depressing property values in high-risk zones like coastal Florida and fire-prone California.

Investor demand for ESG (Environmental, Social, and Governance) funds is a key growth driver.

While the long-term ESG trend is a clear growth driver-global ESG assets are projected to hit $53 trillion by 2025-the near-term US market is complex. North America-domiciled sustainable funds saw net outflows of $11.4 billion in the first half of 2025, a challenge across the industry, but CNS's focus on tangible, physical assets (real estate and infrastructure) provides a clear, defensible link to the 'E' in ESG.

The table below summarizes the core financial risks and opportunities stemming from the environmental landscape as of 2025:

What this estimate hides is the defintely rising cost of insurance and capital expenditures (capex) for climate adaptation, which will erode net operating income (NOI) for your real estate holdings even before a catastrophic event occurs. You need to model this operational risk immediately.

Your next step is clear: Finance: draft a 13-week cash view by Friday, specifically modeling the impact of a 50-basis-point rate hike on your real estate fund portfolio's net interest margin, and concurrently, the effect of a 40% insurance premium spike on the NOI of your top 10 US real estate holdings.