Mercer Capital’s Asset Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants. Each issue includes a segment focus, market overview, mergers and acquisitions review, and more. Segments covered are mutual fund companies (1st quarter), traditional asset mangers (2nd quarter), alternative asset managers (3rd quarter), and trust banks (4th quarter).
The Q2 2013 issue segment focus is Traditional Asset Managers. Excerpting from the discussion of trust banks in the newsletter:
Most publicly traded asset managers outperformed the broader indices as the market trended upward over the last several quarters. In addition to the recent stock rally, many of these businesses benefited from strong asset flows into higher yielding equity products, as well as a general ease in risk aversion across much of the investing population…Moving forward, the trend towards riskier asset classes and higher-yielding funds should remain a steady tailwind for most traditional (equity) money managers that have already benefited from a healthy ascent in AUM over the last year or so. Still, market conditions often dictate asset flows and overhanging geopolitical risks could reverse some of these recent trends, so cautious optimism for the sector’s prospects is likely warranted here.
To read the entire write up, download the newsletter (pdf) here.