American Investors Return to Active Stock Market Participation: Bullish Signal for Asset Managers

April 8, 2014

67 WALL STREET, New York - April 8, 2014 - The Wall Street Transcript has just published its Investment Banks and Asset Management Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Investing in Financial Services - Regulatory Outlook Gains Clarity - Asset Growth - Capital Flow Into Equities - Active Management - Alternative Asset Management

Companies include: Charles Schwab Corp. (SCHW), TD AMERITRADE Holding Corporat (AMTD), BlackRock, Inc. (BLK), T. Rowe Price Group, Inc. (TROW), Janus Capital Group Inc. (JNS), Cohen & Steers Inc. (CNS) and many others.

In the following excerpt from the Investment Banks and Asset Management Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Obviously it's a different market from when we spoke a year ago. What other significant trends are developing in this space that investors should be aware of?

Mr. Sykes: I think the thing that I first started talking about a year ago in some of my reporting is the great rotation. Today, what gets me excited is that you've seen a resurgence in the U.S., almost five years removed from the financial crisis; you have a U.S. consumer that's in better shape, certainly more confident about employment, and now the consumer is benefiting from higher housing prices, so you feel a little bit better about your overall net worth.

So much like consumer spending, we are seeing a higher propensity for adding to retirement portfolios as well as just general exposure to the stock market. People are willing to take a little bit more risk, so that's translating into the higher equity flows that we've seen in the beginning of the year, also some of the flows that we see go through Schwab (SCHW) and TD Ameritrade (AMTD) from the retail front. Those dynamics help equity managers and also boost the savings rate, which is important to the overall economy.

TWST: Regulatory issues are always something you need to watch for this group. What are some of the key regulatory issues that you are monitoring for this year?

Mr. Sykes: The overall higher restrictions that have occurred from Dodd-Frank and some of the other regulations are still a cloud over the whole financial sector, though industry participants have been conditioned to it. We're still waiting to find out more clarity on money market reform, probably in the next couple of years.

And then for some of the bigger institutions, BlackRock (BLK) specifically, there is a very low likelihood of some capital requirements where they are considered to be an important entity in the industry...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.