UBS on U.S. Asset Managers: Solid but Mixed Flows and Strong Markets Drive 1Q12

UBS on U.S. Asset Managers: Solid but Mixed Flows and Strong Markets Drive 1Q12

Analyst, Alex Kramm, said, "Overall the first quarter 2012 was a strong one for the asset management industry. Long-term mutual fund flows were $106bn, or roughly 5% annualized growth...We continue to favor BlackRock (NYSE: BLK) and Invesco (NYSE: IVZ) over Franlklin Resources (NYSE: BEN) in T. Rowe Price (Nasdaq: TROW) in our traditional asset manager coverage. Our global investment strategy team recently suggested that equity markets could pause a bit and as a result trimmed (but did not eliminate) its overweight recommendation to global equities. TROW, which is most levered to equities, should lag in such an environment. The team prefers defensive quality names with high yields, which suggests that BLK could outperform in choppy markets. We continue to warm up to BEN, as overhangs fade away."

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