With 30 year U.S. Treasuries set to auction around 5.23% and investors still wary of locking in long term yields, the ground under liability driven investing and pension hedging stocks is shifting in real time. Higher funding costs and a changing yield curve can create pressure for some companies yet open doors for others. This article walks through three stocks from our pension focused screener that appear closely exposed to this news, and explains why their business models may matter more than ever for your watchlist.

The three stocks below are only a sample of the opportunity set, and the full screen surfaced 9 more U.S. liability driven investing and pension hedging companies with equally compelling narratives that are not covered here. To go deeper into this theme, analyze and compare potential high conviction ideas directly in the U.S. Liability-Driven Investing & Pension-Hedging Asset Managers screener.

Cohen & Steers (CNS)

Overview: Cohen & Steers is a New York based asset manager that builds and runs real asset and income focused portfolios for institutions and funds, investing across listed real estate, infrastructure, preferred securities, commodities and multi asset solutions worldwide.

Operations: The company generates about $583.9 million in revenue from asset management, with most client assets and fees tied to listed real assets and income oriented strategies across global markets.

Market Cap: US$4.4b

For investors watching how higher long term Treasury yields may reshape pension and liability aware portfolios, Cohen & Steers sits close to the action. Its focus on listed real assets and income strategies, including a recently launched Real Assets Active ETF, speaks directly to institutions that may rethink allocations as 30 year yields reset and volatility in private markets and real estate persists. Strong profitability metrics such as a high Return on Equity and recent AUM inflows are appealing. However, the stock carries trade offs including fee pressure, a dividend that is not fully covered by free cash flow and recent insider selling. The bigger question is how this business might benefit if asset owners shift more capital toward liquid, income oriented real assets over time.

Cohen & Steers sits at the intersection of pension hedging, real assets and income, yet the real story may be how its strengths and pressure points fit together. Get the full context in the 2 key rewards and 3 important warning signs (1 is major!)

Build your own real asset and income shortlist

Cohen & Steers and the two other pension focused stocks in this article all surfaced from a single screen, but the real edge comes when you set your own rules. Use our flexible Screener to stack filters across valuation, income, quality and risks, or tap into our curated Investing Ideas if you want a head start.

Ares Management (ARES)

Overview: Ares Management is a Los Angeles based alternative asset manager that lends to and invests in mid sized companies and real estate globally, using private credit, private equity, secondaries and real assets funds to serve institutional and wealth clients across North America, Europe and Asia.

Operations: Ares generates most of its revenue from its Credit Group at about US$3.6b, with additional contributions of roughly US$1.1b from the Real Assets Group, US$384 million from the Secondaries Group and US$193 million from the Private Equity Group, alongside smaller unallocated items.

Market Cap: US$47.0b

With 30 year Treasury yields near multi decade highs, pensions are rethinking how to lock in income, and Ares Management is positioned at the center of much of that conversation. Its scale in private credit and direct lending, record fundraising around US$36b in a recent quarter, and growing fee related earnings give it exposure to institutions that might tilt toward higher yielding credit rather than equities. At the same time, a rich P/E multiple, reliance on external funding, and dividends that are not fully covered by earnings or free cash flow introduce risk if fundraising or deployment slow. For investors tracking this shift in long term rates, the mix of growth potential and balance sheet pressure at Ares may warrant closer attention.

Ares Management’s fundraising and fee related earnings story looks powerful, yet the rich P/E and funding needs raise bigger questions. See how those pieces fit together in the 2 key rewards and 3 important warning signs (2 are major!)

CNO Financial Group (CNO)

Overview: CNO Financial Group provides health insurance, life insurance, annuities and related financial services to middle income pre retirees and retirees in the U.S., selling through its Bankers Life, Washington National and Colonial Penn brands via agents, workplaces and direct online and phone channels.

Operations: CNO Financial Group generates most of its roughly US$4.6b in revenue from Health products at about US$2.0b, followed by Life at about US$1.1b and Annuities at about US$683 million, with the balance from various unallocated investment and fee income streams, all in the United States.

Market Cap: US$5.0b

CNO Financial Group provides direct exposure to higher long term interest rates feeding into an insurer and annuity provider that is reporting record annuity and Medicare Supplement sales, 16 straight quarters of sales growth and raised 2026 earnings guidance. The company is leaning into digital distribution and fee based offerings to improve margins and support ongoing buybacks and a long running dividend, which can be relevant if you care about total return. At the same time, investors are dealing with premium pricing versus many insurance peers, reliance on external funding, one off losses and revenue that analysts expect to drift lower. The key consideration is whether earnings growth and capital returns can more than compensate for those pressure points.

CNO Financial Group’s mix of record annuity and Medicare Supplement sales with premium pricing has investors guessing what they might be missing. Walk through the pressure points and upside in the 3 key rewards and 2 important warning signs (1 is major!)

Seeking Fresh Alternatives Beyond Pensions?

Some of the most interesting breakout stories are often caught early, while the crowd looks elsewhere. Fresh ideas move fast and information goes stale quickly, so consider exploring them promptly.

• Identify fast moving opportunities that pair momentum with balance sheet strength by scanning the curated list of solid balance sheet and fundamentals (49 results) before they stop flying under the radar for now.
• Explore income-oriented candidates with notable payouts using the hand picked 11 dividend fortresses while yields still look appealing and prices have not fully adjusted.
• Track companies involved in building AI-related infrastructure through the focused 55 AI infrastructure stocks and refine your watchlist before broader interest potentially increases.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.