Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Seven fund groups to buy, sell or hold in 2018

A dramatic resurgence of volatility since the end of 2017 has scrambled previously clear cut fund house forecasts for this year

A dramatic resurgence of volatility since the end of 2017 has scrambled previously clear cut fund house forecasts for this year

With ‘broad currency headwinds’ also faced by UK-based asset managers, equity analyst Jefferies noted that it had overhauled its expectations of its core fund house coverage for this year. 

Who's up and who's down? We bring you highlights from the report on seven firms.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

A dramatic resurgence of volatility since the end of 2017 has scrambled previously clear cut fund house forecasts for this year

With ‘broad currency headwinds’ also faced by UK-based asset managers, equity analyst Jefferies noted that it had overhauled its expectations of its core fund house coverage for this year. 

Who's up and who's down? We bring you highlights from the report on seven firms.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Schroders

Jeffries recommends buying into Schroders, despite cutting its price forecast in response to market movements, particularly noting the strength through diversity of its asset base.

‘We were pleased to hear management state at the 2017 results presentation that private assets are going to be an important part of its strategy going forward,' noted the house.

‘We also liked the fact that management noted the importance of longevity and stated the development of longer duration assets will have a “real impact on our long-term growth rate” and will be a topic to which it returns.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Standard Life Aberdeen

Standard Life Aberdeen is seen as undervalued due to market jitters in the wake of Lloyds’ withdrawal of a £109 million mandate from the company in February.

‘We continue to view SLA as a value play with a profit target of 469p [per share].

‘We revised ongoing [earnings per share] to a low of 23.3p in [2019 earnings] from 29.9p last year and noted that the earnings per share created by the recent deal can be plugged by a share buyback of up to £2 billion once Phoenix Life cash is received in 3Q.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Hargreaves Lansdown

Hargreaves Lansdown gets some praise for its strong performance in the first half of the fiscal year as well as good asset longevity, investment in service, and efficient management.

While not substantially changing its forecast, Jeffries raised its recommendation to hold in light of a 13.5% fall in the company’s stock.

‘We expect HL to continue to invest in its platform given the growth opportunity it has identified.

‘HL has now launched its Active Savings product, initially being rolled out to 1000 selected clients.

‘Given the company has stated that its launch will be “measured and sensible”, and will “scale over time”, we do not forecast a meaningful contribution from the service at this point.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Jupiter Fund Management

Developments have led Jeffries to confirm its hold recommendation for Jupiter, with its leading Dynamic Bond fund facing unanticipated outflows.

‘For us the key metrics to watch over time are the gross redemption and gross sales levels.

‘What we need to see now is a return to the momentum shown in its business over the last year.

‘We forecast circa £830 million of net outflows in Q1, a neutral net flow in 2Q before rebuilding net flows through the year.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Man Group

The poor performance of Man Group’s AHL subsidiary is viewed as providing an opportunity to buy into the firm at a reduced price.

Despite AHL’s woes, Jeffereies said Man is ‘a group that has broadened its flows through a focus on more institutional investors and a more client-centric distribution process.

‘This should enable it to build more lasting client relationships and bring greater fund under management longevity.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Intermediate Capital Group

Volatility may prove a boon to Intermediate Capital, with many of its strategies having a floating rate element:

‘We believe the market needs to focus on how to capture the value of its closed ended strategies at the right end of industry allocations and the value of its balance sheet as an enabler of growth.

‘With a profit target of £14.45p Intermediate remains our preferred play in the sector; Buy.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Ashmore Group

Ashmore is expected to benefit from net inflows, with Jeffries estimating a 9.9% increase in earnings per share for 2018.

‘The performance across a number of its strategies has remained positive through its 3Q and we estimate some $72.3bn of 3Q AUM to be reported on 17 April.

‘We roll forward our profit target to 400p, leaving our recommendation at hold.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: how career burnout led to a family office launch

Profile: how career burnout led to a family office launch

I was burnt-out from a career in finance and had no desire to come back, says the founder of Blu Family Office

Wealth Manager on Twitter