Rodrigo Ferreira

Rodrigo Ferreira asked where cash on the sidelines is expected to go as rates decline and which Cohen & Steers strategies stand to benefit most from a flows perspective.

Answer

CEO Joe Harvey indicated that record levels of cash in money funds and T-bills are likely to move into diversifiers and inflation-sensitive real asset strategies, pointing to real estate, infrastructure, and multi-strategy real assets. President and CIO Jon Cheigh added that movement into preferreds (shorter/lower duration) is expected, especially as the yield curve steepens, and that private credit funds' compressed returns might also drive allocations to preferreds. Rodrigo Ferreira then inquired about the outlook for the compensation ratio in 2026 and longer term, and the balance between investing in the business and expanding operating margin. Joe Harvey explained that revenue growth helps the comp ratio and margin, with new initiatives like private real estate and active ETFs beginning to generate revenue against existing costs. He noted ongoing investments in corporate infrastructure, scaling active ETFs, and expanding distribution in the RIA segment, expecting these to be additive and help manage the comp ratio.

Rodrigo Ferreira from Bank of America questioned the Q2 slowdown in Global Listed Infrastructure flows and also inquired about the drivers behind the stronger flows into global real estate compared to U.S. real estate.

Answer

CEO Joseph Harvey explained the lower Global Listed Infrastructure flows were due to two large institutional clients rebalancing and taking gains, not performance issues. He affirmed a bullish long-term outlook for the strategy. Regarding real estate, Harvey confirmed a trend of increased interest in global strategies as investors look beyond 'American exceptionalism,' noting their pipeline reflects more global allocators. He added that concerns over U.S. policy have had minimal impact on flows.

Rodrigo Ferreira from Bank of America asked about the reasons for the slowdown in Global Listed Infrastructure flows in Q2 and the drivers behind the stronger demand for global real estate compared to US real estate.

Answer

CEO Joseph Harvey explained that the lower Global Listed Infrastructure flows were due to two large institutional clients rebalancing their overweight positions back to target levels, not due to performance issues. Regarding real estate, Harvey confirmed a trend towards global strategies as investors look beyond 'American exceptionalism,' a dynamic reflected in the firm's pipeline. He also noted that concerns over US policy had a minimal impact on flows.

Rodrigo Ferreira from Bank of America asked about the reasons for the slowdown in global listed infrastructure flows in Q2 after a strong Q1. He also inquired about the drivers behind stronger flows into global real estate versus U.S. real estate and whether there has been a notable shift away from U.S. assets.

Answer

CEO Joseph Harvey explained that the moderation in global listed infrastructure flows was due to two large institutional clients rebalancing their portfolios back to target weights after achieving strong performance. Regarding real estate, Harvey confirmed an increased interest in global strategies as investors look beyond 'American exceptionalism,' a trend reflected in the current institutional pipeline. He clarified that concerns over U.S. policy, such as the now-removed 'revenge tax,' have had a minimal impact on investor allocations.

Rodrigo Ferreira of Bank of America asked about the drivers behind the weaker Q2 flows in global listed infrastructure compared to Q1. He also inquired if the stronger flows in global real estate versus U.S. real estate were driven by U.S. or international investors and if there was a post-'Liberation Day' shift away from U.S. assets.

Answer

CEO Joseph Harvey explained that the global listed infrastructure slowdown was due to two large institutional clients rebalancing portfolios and taking gains, not performance issues. He confirmed an astute observation on real estate, noting that while 'American exceptionalism' has historically favored U.S. strategies, there is growing interest in global real estate, reflected in the pipeline. He added there has been very little impact from U.S. policy concerns.

Rodrigo Ferreira from Bank of America questioned the reasons for moderated global listed infrastructure flows in Q2 and the dynamics behind stronger global versus U.S. real estate flows, including investor geography.

Answer

CEO Joseph Harvey explained that lower Q2 global listed infrastructure flows were due to two large institutional clients rebalancing and taking profits, not a change in strategy appeal. He remains bullish on infrastructure. Regarding real estate, Harvey confirmed a shift toward global strategies as investors look beyond 'American exceptionalism,' noting the firm's pipeline reflects more global allocators. He added that concerns over U.S. policy, like the now-removed 'revenge tax,' have had minimal impact on flows.

Rodrigo Ferreira from Bank of America asked about the drivers behind the weaker net flows in global listed infrastructure during the second quarter compared to the first. He also questioned the trend of stronger flows into global real estate versus U.S. real estate, asking if this demand was from U.S. or international investors and if a shift away from U.S. assets was occurring.

Answer

CEO Joseph Harvey explained that global listed infrastructure flows, while still positive, were moderated by two large institutional clients rebalancing their portfolios and taking gains. Regarding real estate, Harvey confirmed a trend toward global strategies as international markets catch up, noting that the firm's pipeline reflects more interest from global allocators. He stated that concerns over U.S. policy have had minimal impact on allocation decisions.

Rodrigo Ferreira of Bank of America inquired about Patria's expansion strategy in Mexico, including the types of partners or acquisitions sought, and asked for an update on the capital deployment pipeline, particularly for the infrastructure segment.

Answer

CEO Alexandre Saigh detailed a cautious expansion into Mexico, starting with a small real estate investment trust (fibra) acquisition alongside a local partner to target the logistics sector. He noted Mexico's growing pension fund market as a key opportunity for local products. Regarding deployment, Saigh confirmed that out of the $3.3 billion in pending fee-earning AUM, about a third is for infrastructure, with a strong pipeline in Brazilian toll roads and Colombian energy and water sanitation projects. He also highlighted the GPMS business, which has significant capital to deploy in European middle-market private equity secondaries.