Set forth on the following pages is management's discussion and analysis of our financial condition and results of operations for the three months endedMarch 31, 2022 and 2021. Such information should be read in conjunction with our condensed consolidated financial statements and the related notes included herein. The condensed consolidated financial statements of the Company are unaudited. When we use the terms "Cohen & Steers ," the "Company," "we," "us," and "our," we meanCohen & Steers, Inc. , aDelaware corporation, and its consolidated subsidiaries. Executive Overview General We are a global investment manager specializing in real assets and alternative income, including real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, we are headquartered inNew York City , with offices inLondon ,Dublin ,Hong Kong andTokyo . Our primary investment strategies includeU.S. real estate, preferred securities and low duration preferred securities, global/international real estate, global listed infrastructure, real assets multi-strategy, midstream energy and MLPs, as well as global natural resource equities. Our strategies seek to achieve a variety of investment objectives for different risk profiles and are actively managed by specialist teams of investment professionals who employ fundamental-driven research and portfolio management processes. We offer our strategies through a variety of investment vehicles, includingU.S. and non-U.S. registered funds and other commingled vehicles, separate accounts and subadvised portfolios.
Our distribution network encompasses two major channels, wealth and institutional. Our wealth channel includes registered investment advisers, wirehouses, independent and regional broker dealers and bank trusts. Our institutional channel includes sovereign wealth funds, corporate plans, insurance companies and public funds, including defined benefit and defined contribution plans, as well as other financial institutions that access our investment management services directly or through consultants and other intermediaries.
Our revenue from the wealth channel is derived from investment advisory, administration, distribution and service fees from Company-sponsored open-end and closed-end funds. Our revenue from the institutional channel is derived from fees received from our clients for managing advised and subadvised accounts. Our fees are based on contractually specified rates applied to the value of the assets we manage and, in certain cases, may include a performance-based fee. Our revenue fluctuates with changes in the total value of our assets under management, which may occur as a result of market appreciation and depreciation, contributions or withdrawals from investor accounts and distributions. This revenue is recognized over the period that the assets are managed. The Russian invasion ofUkraine has impacted global financial markets, introducing new threats to global economic growth and adding to inflationary pressures. We have taken measures to ensure ongoing compliance with all applicable sanctions and guidance issued by authorities globally against certain regions, entities, or individuals. Our overall exposure to Russian and Ukrainian securities is limited and we do not expect a material impact to our financial results. 20 --------------------------------------------------------------------------------
Assets Under Management By Investment Vehicle (in millions) Three Months EndedMarch 31, 2022 2021
Open-end Funds
Assets under management, beginning of period
4,886 5,070 Outflows (4,678) (2,906) Net inflows (outflows) 208 2,164 Market appreciation (depreciation) (2,735) 1,537 Distributions (279) (238) Total increase (decrease) (2,806) 3,463
Assets under management, end of period
$ 48,055 $ 36,620
Institutional Accounts
Assets under management, beginning of period
2,060 2,335 Outflows (2,066) (748) Net inflows (outflows) (6) 1,587 Market appreciation (depreciation) (1,494) 2,000 Distributions (271) (304) Total increase (decrease) (1,771) 3,283
Assets under management, end of period
$ 40,631 $ 34,622
Closed-end Funds
Assets under management, beginning of period
554 65 Outflows - - Net inflows (outflows) 554 65 Market appreciation (depreciation) (337) 469 Distributions (147) (148) Total increase (decrease) 70 386
Assets under management, end of period
$ 12,550 $ 11,601
Total
Assets under management, beginning of period
7,500 7,470 Outflows (6,744) (3,654) Net inflows (outflows) 756 3,816 Market appreciation (depreciation) (4,566) 4,006 Distributions (697) (690) Total increase (decrease) (4,507) 7,132
Assets under management, end of period
$ 101,236 $ 82,843 21
-------------------------------------------------------------------------------- Assets Under Management - Institutional Accounts By Account Type (in millions) Three Months Ended March 31, 2022 2021 Advisory Assets under management, beginning of period$ 24,599 $ 17,628 Inflows 1,573 1,937 Outflows (1,615) (243) Net inflows (outflows) (42) 1,694 Market appreciation (depreciation) (831)
957
Total increase (decrease) (873)
2,651
Assets under management, end of period$ 23,726 $
20,279
Percentage of institutional assets under management 57.9 % 55.5 % Average assets under management
$ 23,861 $
18,900
Japan Subadvisory Assets under management, beginning of period$ 11,329 $ 9,720 Inflows 219 98 Outflows (103) (302) Net inflows (outflows) 116 (204) Market appreciation (depreciation) (482) 712 Distributions (271) (304) Total increase (decrease) (637) 204 Assets under management, end of period$ 10,692 $
9,924
Percentage of institutional assets under management 26.1 % 27.2 % Average assets under management
$ 10,351 $
9,661
Subadvisory Excluding Japan Assets under management, beginning of period$ 6,799 $ 5,907 Inflows 268 300 Outflows (348) (203) Net inflows (outflows) (80) 97 Market appreciation (depreciation) (181)
331
Total increase (decrease) (261)
428
Assets under management, end of period$ 6,538 $
6,335
Percentage of institutional assets under management 16.0 % 17.3 % Average assets under management
$ 6,419 $
6,061
Total Institutional Accounts Assets under management, beginning of period$ 42,727 $ 33,255 Inflows 2,060 2,335 Outflows (2,066) (748) Net inflows (outflows) (6) 1,587 Market appreciation (depreciation) (1,494) 2,000 Distributions (271) (304) Total increase (decrease) (1,771) 3,283 Assets under management, end of period$ 40,956 $
36,538
Average assets under management$ 40,631 $ 34,622 22
--------------------------------------------------------------------------------
Assets Under Management By Investment Strategy (in millions) Three Months EndedMarch 31, 2022 2021
3,293 3,126 Outflows (2,736) (1,391) Net inflows (outflows) 557 1,735 Market appreciation (depreciation) (2,792) 2,837 Distributions (412) (415) Total increase (decrease) (2,647) 4,157
Assets under management, end of period
$ 46,462 $ 34,512
Preferred Securities
Assets under management, beginning of period
1,964 2,406 Outflows (2,872) (1,596) Net inflows (outflows) (908) 810 Market appreciation (depreciation) (1,400) 2 Distributions (213) (207) Total increase (decrease) (2,521) 605
Assets under management, end of period
$ 25,649 $ 23,526
Global/International Real Estate
Assets under management, beginning of period
1,556 1,079 Outflows (780) (567) Net inflows (outflows) 776 512 Market appreciation (depreciation) (775) 709 Distributions (19) (14) Total increase (decrease) (18) 1,207
Assets under management, end of period
$ 18,867 $ 15,588 23
-------------------------------------------------------------------------------- Assets Under Management By Investment Strategy - continued (in millions) Three Months EndedMarch 31, 2022 2021
Global Listed Infrastructure
Assets under management, beginning of period
464 679 Outflows (299) (74) Net inflows (outflows) 165 605 Market appreciation (depreciation) 314 315 Distributions (45) (45) Total increase (decrease) 434 875
Assets under management, end of period
9.0 % 8.7 % Average assets under management$ 8,609 $ 7,137
Other
Assets under management, beginning of period
223 180 Outflows (57) (26) Net inflows (outflows) 166 154 Market appreciation (depreciation) 87 143 Distributions (8) (9) Total increase (decrease) 245 288
Assets under management, end of period
1.8 % 2.6 % Average assets under management$ 1,649 $ 2,080
Total
Assets under management, beginning of period
7,500 7,470 Outflows (6,744) (3,654) Net inflows (outflows) 756 3,816 Market appreciation (depreciation) (4,566) 4,006 Distributions (697) (690) Total increase (decrease) (4,507) 7,132
Assets under management, end of period
$ 101,236 $ 82,843 24
--------------------------------------------------------------------------------
Investment Performance at
[[Image Removed: cns-20220331_g1.jpg]]_________________________ (1) Past performance is no guarantee of future results.Outperformance is determined by comparing the annualized investment performance of each investment strategy to the performance of specified reference benchmarks. Investment performance in excess of the performance of the benchmark is considered outperformance. The investment performance calculation of each investment strategy is based on all active accounts and investment models pursuing similar investment objectives. For accounts, actual investment performance is measured gross of fees and net of withholding taxes. For investment models, for which actual investment performance does not exist, the investment performance of a composite of accounts pursuing comparable investment objectives is used as a proxy for actual investment performance. The performance of the specified reference benchmark for each account and investment model is measured net of withholding taxes, where applicable. This is not investment advice and may not be construed as sales or marketing material for any financial product or service sponsored or provided byCohen & Steers . (2) © 2022 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar calculates its ratings based on a risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars and the bottom 10% receive one star. Past performance is no guarantee of future results. Based on independent rating by Morningstar, Inc. of investment performance of eachCohen & Steers -sponsored open-endU.S. -registered mutual fund for all share classes for the overall period atMarch 31, 2022 . Overall Morningstar rating is a weighted average based on the 3-year, 5-year and 10-year Morningstar rating. Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages. This is not investment advice and may not be construed as sales or marketing material for any financial product or service sponsored or provided byCohen & Steers . Overview Assets under management atMarch 31, 2022 increased 17.3% to$102.1 billion from$87.0 billion atMarch 31, 2021 . The increase was due to net inflows of$6.4 billion and market appreciation of$12.4 billion , partially offset by distributions of$3.7 billion . Net inflows included$3.9 billion intoU.S. real estate and$2.0 billion into preferred securities. Market appreciation included$8.8 billion fromU.S. real estate and$2.4 billion from global/international real estate. Distributions included$2.3 billion fromU.S. real estate and$1.0 billion from preferred securities. Our organic growth rate for the twelve months endedMarch 31, 2022 was 7.3%. The organic growth rate represents the ratio of net flows for the period to the beginning assets under management.
Average assets under management for the three months ended
25 --------------------------------------------------------------------------------
Open-end funds
Assets under management in open-end funds atMarch 31, 2022 , which represented 47.1% of total assets under management, increased 24.6% to$48.1 billion from$38.6 billion atMarch 31, 2021 . The increase was due to net inflows of$6.8 billion and market appreciation of$4.7 billion , partially offset by distributions of$2.0 billion . Net inflows included$3.6 billion intoU.S. real estate and$1.6 billion into preferred securities. Market appreciation included$4.6 billion fromU.S. real estate. Distributions included$1.0 billion fromU.S. real estate ($966 million of which was reinvested and included in net inflows) and$769 million from preferred securities ($581 million of which was reinvested and included in net inflows). Our organic growth rate for open-end funds for the twelve months endedMarch 31, 2022 was 17.7%. Average assets under management for open-end funds for the three months endedMarch 31, 2022 increased 31.2% to$48.1 billion from$36.6 billion for the three months endedMarch 31, 2021 . Institutional accounts Assets under management in institutional accounts atMarch 31, 2022 , which represented 40.1% of total assets under management, increased 12.1% to$41.0 billion from$36.5 billion atMarch 31, 2021 . The increase was due to market appreciation of$6.5 billion , partially offset by net outflows of$1.0 billion and distributions of$1.2 billion . Net outflows included$1.0 billion from real assets multi-strategy (included in "Other" in the table on pages 23 and 24). Market appreciation included$3.5 billion fromU.S. real estate,$2.2 billion from global/international real estate and$635 million from global listed infrastructure. Distributions included$1.1 billion fromU.S. real estate. Our organic decay rate for institutional accounts for the twelve months endedMarch 31, 2022 was (2.7%). Average assets under management for institutional accounts for the three months endedMarch 31, 2022 increased 17.4% to$40.6 billion from$34.6 billion for the three months endedMarch 31, 2021 . Assets under management in advisory accounts atMarch 31, 2022 , which represented 57.9% of institutional assets under management, increased 17.0% to$23.7 billion from$20.3 billion atMarch 31, 2021 . The increase was due to net inflows$210 million and market appreciation of$3.2 billion . Net inflows included$485 million into global listed infrastructure,$308 million into preferred securities,$290 million intoU.S. real estate,$172 million into global/international real estate, partially offset by net outflows of$1.0 billion from real assets multi-strategy (included in "Other" in the table on pages 23 and 24). Market appreciation included$1.4 billion fromU.S. real estate,$1.2 billion from global/international real estate and and$447 million from global listed infrastructure. Our organic growth rate for advisory accounts for the twelve months endedMarch 31, 2022 was 1.0%. Average assets under management for advisory accounts for the three months endedMarch 31, 2022 increased 26.2% to$23.9 billion from$18.9 billion for the three months endedMarch 31, 2021 . Assets under management inJapan subadvisory accounts atMarch 31, 2022 , which represented 26.1% of institutional assets under management, increased 7.7% to$10.7 billion from$9.9 billion atMarch 31, 2021 . The increase was due to market appreciation of$2.4 billion , partially offset by net outflows of$450 million and distributions of$1.2 billion . Net outflows included$448 million fromU.S. real estate. Market appreciation included$1.9 billion fromU.S. real estate and$444 million from global/international real estate. Distributions included$1.1 billion fromU.S. real estate. Our organic decay rate forJapan subadvisory accounts for the twelve months endedMarch 31, 2022 was (4.5%). Average assets under management forJapan subadvisory accounts for the three months endedMarch 31, 2022 increased 7.1% to$10.4 billion from$9.7 billion for the three months endedMarch 31, 2021 . Assets under management in subadvisory accounts excludingJapan atMarch 31, 2022 , which represented 16.0% of institutional assets under management, increased 3.2% to$6.5 billion from$6.3 billion atMarch 31, 2021 . The increase was due to market appreciation of$968 million , partially offset by net outflows of$765 million . Net outflows included$401 million from global/international real estate and$283 million from global listed infrastructure. Market appreciation included$550 million from global/international real estate and$217 million fromU.S. real estate. Our organic decay rate for subadvisory accounts excludingJapan for the twelve months endedMarch 31, 2022 was (12.1%).
Average assets under management for subadvisory accounts excluding
26 --------------------------------------------------------------------------------
Closed-end funds
Assets under management in closed-end funds atMarch 31, 2022 , which represented 12.8% of total assets under management, increased 10.0% to$13.1 billion from$11.9 billion atMarch 31, 2021 . The increase was due to net inflows of$576 million and market appreciation of$1.2 billion , partially offset by distributions of$621 million . Inflows of$482 million , which included leverage, were attributable to the Company's initial public offering of the Cohen & Steers Real Estate Opportunities and Income Fund (RLTY). Our organic growth rate for closed-end funds for the twelve months endedMarch 31, 2022 was 4.8%. Average assets under management for closed-end funds for the three months endedMarch 31, 2022 increased 8.2% to$12.6 billion from$11.6 billion for the three months endedMarch 31, 2021 . 27 --------------------------------------------------------------------------------
Summary of Operating Results
Three Months
Ended
March 31 ,
(in thousands, except percentages and per share data) 2022
2021U.S. GAAP Revenue$ 154,189 $ 125,747 Expenses$ 103,198 $ 73,809 Operating income$ 50,991 $ 51,938 Non-operating income (loss)$ 5,110 $ 4,953 Net income attributable to common stockholders$ 42,018 $ 48,852 Diluted earnings per share$ 0.85 $ 1.00 Operating margin 33.1 % 41.3 % As Adjusted (1) Net income attributable to common stockholders$ 51,152 $ 38,629 Diluted earnings per share$ 1.04 $ 0.79 Operating margin 44.7 % 42.3 % _________________________
(1) Please refer to pages 31-32 for reconciliations of
U.S. GAAP Three Months EndedMarch 31, 2022 Compared with Three Months EndedMarch 31, 2021 Revenue Three Months Ended March 31, (in thousands) 2022 2021 $ Change % Change Open-end funds$ 79,665 $ 60,603 $ 19,062 31.5 % Institutional accounts 36,683 30,987$ 5,696 18.4 % Closed-end funds 27,321 25,331$ 1,990 7.9 % Investment advisory and administration fees 143,669 116,921$ 26,748 22.9 % Distribution and service fees 9,869 8,272$ 1,597 19.3 % Other 651 554$ 97 17.5 % Total revenue$ 154,189 $ 125,747 $ 28,442 22.6 %
Investment advisory and administration fees increased from the three months
ended
•Total investment advisory and administration revenue from open-end funds compared with average assets under management implied an annualized effective fee rate of 67.2 bps and 67.1 bps for the three months endedMarch 31, 2022 and 2021, respectively. •Total investment advisory revenue from institutional accounts compared with average assets under management implied an annualized effective fee rate of 36.6 bps and 36.3 bps for the three months endedMarch 31, 2022 and 2021, respectively. •Total investment advisory and administration revenue from closed-end funds compared with average assets under management implied an annualized effective fee rate of 88.3 bps and 88.6 bps for the three months endedMarch 31, 2022 and 2021, respectively. 28 --------------------------------------------------------------------------------
Expenses Three Months Ended March 31, (in thousands) 2022 2021 $ Change % Change Employee compensation and benefits$ 54,743 $ 45,762 $ 8,981 19.6 % Distribution and service fees 33,951 16,506$ 17,445 105.7 % General and administrative 13,510 10,374$ 3,136 30.2 % Depreciation and amortization 994 1,167$ (173) (14.8) % Total expenses$ 103,198 $ 73,809 $ 29,389 39.8 % Employee compensation and benefits increased from the three months endedMarch 31, 2021 , primarily due to higher incentive compensation of$3.4 million , an increase in amortization of restricted stock units of$2.3 million and higher salaries of$1.2 million . Distribution and service fees increased from the three months endedMarch 31, 2021 , primarily due to costs of$14.2 million associated with the initial public offering of RLTY and higher average assets under management inU.S. open-end funds.
General and administrative expenses increased from the three months ended
Operating Margin
Operating margin for the three months endedMarch 31, 2022 decreased to 33.1% from 41.3% for the three months endedMarch 31, 2021 . The three months endedMarch 31, 2022 included costs associated with the initial public offering of RLTY. Operating margin represents the ratio of operating income to revenue. Non-operating Income (Loss) Three Months Ended March 31, 2022 March 31, 2021 Seed Investments Seed Investments (in thousands) (1) Other Total (1) Other Total
Interest and dividend income-net $ 901
897 $ 604
3,565 2 3,567 4,485 74 4,559 Foreign currency gain (loss)-net (295) 941 646 191 (413) (222)
Total non-operating income (loss)
_________________________
(1) Seed investments included net income of
Income Taxes
A reconciliation of the Company's statutory federal income tax rate and the effective income tax rate is summarized in the following table:
Three Months Ended March 31, 2022 2021 U.S. statutory tax rate 21.0 % 21.0 % State and local income taxes, net of federal benefit 3.5 4.1 Non-deductible executive compensation 5.2 3.4
Excess tax benefits related to the vesting and delivery of restricted stock units
(11.5) (10.4) Unrecognized tax benefit adjustments - (10.2) Other (0.1) 0.5 Effective income tax rate 18.1 % 8.4 % 29
--------------------------------------------------------------------------------
As Adjusted
This section discusses as adjusted results. Please refer to pages 31-32 for
reconciliations of
Three Months Ended
Revenue
Revenue, as adjusted, for the three months ended
Revenue, as adjusted, excluded the consolidation of certain of our seed investments for both periods.
Expenses
Expenses, as adjusted, for the three months ended
Expenses, as adjusted, excluded the following:
•The consolidation of certain of our seed investments for both periods;
•Amounts related to the accelerated vesting of certain restricted stock units for both periods; and
•Costs associated with the initial public offering of RLTY for the three months
ended
Operating Margin Operating margin, as adjusted, for the three months endedMarch 31, 2022 was 44.7%, compared with 42.3%, as adjusted, for the three months endedMarch 31, 2021 . Non-operating Income (Loss) Non-operating loss, as adjusted, for the three months endedMarch 31, 2022 was$273,000 , compared with non-operating loss, as adjusted, of$118,000 for the three months endedMarch 31, 2021 .
Non-operating income (loss), as adjusted, excluded the following for both periods:
•Results from our seed investments; and
•Net foreign currency exchange gains and losses associated with
Income Taxes
The effective tax rate, as adjusted, for the three months ended
The effective tax rate, as adjusted, excluded the following for both periods:
•Tax effects associated with items noted above; and
•Discrete tax items.
30 --------------------------------------------------------------------------------
Reconciliations of
Management believes that use of the following as adjusted (non-GAAP) financial results provides greater transparency into the Company's operating performance. In addition, these as adjusted financial results are used to prepare the Company's internal management reports which are used in evaluating its business.
While we believe that these as adjusted financial results are useful in
evaluating operating performance, this information should be considered as
supplemental in nature and not as a substitute for the related financial
information prepared in accordance with
Reconciliation ofU.S. GAAP to As Adjusted Financial Results Net Income Attributable to Common Stockholders and Diluted Earnings per Share Three Months EndedMarch 31 , (in thousands, except per share data) 2022
2021
Net income attributable to common stockholders,
$ 48,852 Seed investments (1) 1,051
(1,512)
Accelerated vesting of restricted stock units 2,305
1,088
Initial public offering costs (2) 15,239
-
Foreign currency exchange (gains) losses-net (3) (1,212)
209
Tax adjustments (4) (8,249)
(10,008)
Net income attributable to common stockholders, as adjusted
Diluted weighted average shares outstanding 49,337
48,709
Diluted earnings per share, U.S. GAAP$ 0.85 $ 1.00 Seed investments 0.02
(0.03)
Accelerated vesting of restricted stock units 0.05
0.02
Initial public offering costs 0.31
-
Foreign currency exchange (gains) losses-net (0.02)
0.01
Tax adjustments (0.17)
(0.21)
Diluted earnings per share, as adjusted$ 1.04
_________________________
(1) Represents amounts related to the deconsolidation of seed investments in Company-sponsored funds as well as non-operating (income) loss from seed investments that were not consolidated. (2) Represents costs associated with the initial public offering of RLTY. Costs are summarized in the following table: Three Months Ended March 31, (in thousands) 2022 2021 Employee compensation and benefits $ 357 $ - Distribution and service fees 14,224 - General and administrative 658 - Initial public offering costs$ 15,239 $ -
(3) Represents net foreign currency exchange (gains) losses associated with
Three Months Ended March 31, (in thousands) 2022 2021
Exclusion of tax effects associated with items noted above
$ 231 Exclusion of discrete tax items (3,968) (10,239) Total tax adjustments$ (8,249) $ (10,008) 31
--------------------------------------------------------------------------------
Reconciliation of
Three Months Ended March 31, (in thousands, except percentages) 2022 2021 Revenue, U.S. GAAP$ 154,189 $ 125,747 Seed investments (1) 123 94 Revenue, as adjusted$ 154,312 $ 125,841 Expenses, U.S. GAAP$ 103,198 $ 73,809 Seed investments (1) (276) (96)
Accelerated vesting of restricted stock units (2,305) (1,088) Initial public offering costs (2)
(15,239) - Expenses, as adjusted$ 85,378 $ 72,625 Operating income, U.S. GAAP$ 50,991 $ 51,938 Seed investments (1) 399 190 Accelerated vesting of restricted stock units 2,305 1,088 Initial public offering costs (2) 15,239 - Operating income, as adjusted$ 68,934 $ 53,216 Operating margin, U.S. GAAP 33.1 % 41.3 % Operating margin, as adjusted 44.7 % 42.3 %
_________________________
(1) Represents amounts related to the deconsolidation of seed investments in Company-sponsored funds. (2) Represents costs associated with the initial public offering of RLTY. Costs are summarized in the following table: Three Months Ended March 31, (in thousands) 2022 2021 Employee compensation and benefits $ 357 $ - Distribution and service fees 14,224 - General and administrative 658 - Initial public offering costs$ 15,239 $ -
Reconciliation of
Three Months EndedMarch 31 , (in thousands) 2022
2021
Non-operating income (loss), U.S. GAAP$ 5,110 $
4,953
Seed investments (1) (4,171)
(5,280)
Foreign currency exchange (gains) losses-net (2) (1,212)
209
Non-operating income (loss), as adjusted$ (273) $
(118)
_________________________
(1) Represents amounts related to the deconsolidation of seed investments in Company-sponsored funds as well as non-operating (income) loss from seed investments that were not consolidated. (2) Represents net foreign currency exchange (gains) losses associated withU.S. dollar-denominated assets held by certain foreign subsidiaries. 32 --------------------------------------------------------------------------------
Changes in Financial Condition, Liquidity and Capital Resources
We seek to maintain a capital structure that supports our business strategies and maintains the appropriate amount of liquidity at all times. Furthermore, we currently expect cash flows from operations to be more than adequate to fund our present and reasonably foreseeable future commitments for investing and financing activities.
Net Liquid Assets
Our current financial condition is highly liquid and is primarily comprised of
cash and cash equivalents,
The table below summarizes net liquid assets:
March 31, December 31, (in thousands) 2022 2021 Cash and cash equivalents$ 84,817 $ 184,373 U.S. Treasury securities 29,945 - Liquid seed investments-net 63,432 62,679 Other current assets 90,178 84,533 Current liabilities (71,559) (118,888) Net liquid assets$ 196,813 $ 212,697 Cash and cash equivalents Cash and cash equivalents are on deposit with several highly-rated financial institutions and include short-term, highly liquid investments, which are readily convertible into cash and have original maturities of three months or less. During the three months endedMarch 31, 2022 , we paid aggregate costs of$15.2 million associated with the initial public offering of RLTY. We also funded an additional$18.0 million of our up to$50.0 million investment commitment in theCohen & Steers Real Estate Opportunities Fund, L.P. (REOF) during the quarter. Refer to Investment Commitments, Contractual Obligations, Commitments and Contingencies for further discussion.
Liquid seed investments-net
Liquid seed investments are generally traded in active markets on major exchanges and can typically be liquidated within a normal settlement cycle. Liquid seed investments are presented net of redeemable noncontrolling interests.
Other current assets
Other current assets primarily represent investment advisory and administration fees receivable. AtMarch 31, 2022 , institutional accounts comprised 52.0% of total accounts receivable, while open-end and closed-end funds, together, comprised 47.1% of total accounts receivable. We perform a review of our receivables on an ongoing basis in order to assess collectibility and, based on our analysis atMarch 31, 2022 , there was no allowance for uncollectible accounts required.
Current liabilities
Current liabilities included accrued compensation and benefits, distribution and service fees payable, operating lease obligations due within 12 months, certain income taxes payable, and other liabilities and accrued expenses.
Cash flows
Our cash flows generally result from the operating activities of our business, with investment advisory and administration fees being the most significant contributor.
33 --------------------------------------------------------------------------------
The table below summarizes our cash flows:
© Edgar Online, source