Credit Suisse upgrades its ratings on some European asset managers saying that macro uncertainty is abating and industry fund flow data shows signs that demand for equities is tentatively beginning to improve.
It upgrades GAM Holding to “outperform” from “neutral”, saying the stock reflects a combination of attractive valuation relative to the sector, an improved risk appetite resulting in a broadening of flows, and reduced headwinds from outflows from legacy private banking clients.
GAM shares are up 4.3 percent, against a flat European stock market.
Credit Suisse also upgrades Partners Group Holding to “outperform” from “neutral” on above-average net fund inflows growth, scope for increasing allocation to private markets and opportunities to fill the funding gap to small and medium enterprises (SMEs) as banks continue to deleverage.
Schroders is upgraded to “neutral” from “underperform”, with Credit Suisse saying the change in rating is driven by its more positive stance on net inflows into equities across retail and institutional clients and increased demand for multi-asset products.
Shares in Schroders are up 1.2 percent, while Partners is up 0.2 percent.
However, it downgrades emerging markets-focussed Ashmore Group to “underperform” from “neutral” as it sees downside risk to consensus net flow forecasts and pressure on net management fee margins from rising competition. Ashmore is down 0.2 percent.
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