CNS AR24 Digital - Book - Page 79
COHEN & STEERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS4(Continued)
Total return swap contracts classified as Level 2 were valued based on the underlying futures contracts or equity
indices.
Foreign currency exchange contracts classified as Level 2 were valued based on the prevailing forward exchange rate,
which is an input that is observable in active markets.
The following table summarizes the changes in Level 3 investments measured at fair value on a recurring basis:
Years Ended December 31,
2024
(in thousands)
Balance at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Purchases/contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales/distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
13,202 $
19,998
4
(648)
32,552 $
2023
10,759
11,856
(5,352)
(4,061)
13,202
Valuation Techniques
In certain instances, debt and equity securities are valued on the basis of prices from an orderly transaction between
market participants provided by reputable broker-dealers or independent pricing services. In determining the value of a
particular investment, independent pricing services may use information with respect to transactions in such investments,
broker quotes, pricing matrices, market transactions in comparable investments and various relationships between
investments. As part of its independent price verification process, the Company generally performs reviews of valuations
provided by broker-dealers or independent pricing services. Investments in funds are valued at their closing price or NAV (or
its equivalent) as a practical expedient.
In the absence of observable market prices, the Company values its investments using valuation methodologies applied
on a consistent basis. For some investments, little market activity may exist; management's determination of fair value is then
based on the best information available in the circumstances, and may incorporate management's own assumptions and
involve a significant degree of judgment, taking into consideration a combination of internal and external factors. Such
investments are valued no less than quarterly, taking into consideration any changes in key inputs and changes in economic
and other relevant conditions, and valuation models are updated accordingly. The Company has established a valuation
committee to administer, implement and oversee the valuation policies and procedures (the Valuation Committee).
Additionally, the Company has retained an independent valuation services firm to assist in the determination of the fair value
of certain private real estate investments.
The following table summarizes the valuation techniques and significant unobservable inputs approved by the
Valuation Committee for Level 3 investments measured at fair value on a recurring basis:
Fair Value as of
December 31, 2024
(in thousands)
Limited partnership
interests . . . . . . . . . .
Unobservable Inputs
$32,552 Discounted cash flow Discount rate
Terminal capitalization rate
Fair Value as of
December 31, 2023
(in thousands)
Limited partnership
interests . . . . . . . . . .
Valuation Technique
Valuation Technique
Unobservable Inputs
$13,202 Discounted cash flow Discount rate
Terminal capitalization rate
Transaction price
n/a
Range
Weighted
Average
7.00% - 10.50%
5.25% - 8.75%
8.82%
7.39%
Value
Weighted
Average
9.25%
7.75%
9.25%
7.75%
Changes in the significant unobservable inputs in the above tables may result in a materially higher or lower fair value
measurement.
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