"Best on the Street" Analyst Robert Lee, a Managing Director at Keefe, Bruyette & Woods, Inc., Interviews with the Wall Street Transcript: A Shift in Institutional Demand from Fixed Income to Alternative Strategies in Asset Management

Wall Street Transcript

67 WALL STREET, New York - March 28, 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: The Blackstone Group (BX), BlackRock, Inc. (BLK), Franklin Resources Inc. (BEN), Invesco Ltd. (IVZ), State Street Corp. (STT), The Bank of New York Mellon Co (BK), Eaton Vance Corp. (EV), Waddell & Reed Financial Inc. (WDR), SEI Investments Co. (SEIC), Legg Mason Inc. (LM), AllianceBernstein Holding L.P. (AB), Janus Capital Group Inc. (JNS), Affiliated Managers Group Inc. (AMG) 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: Can you begin with a quick overview to your coverage, including some of the specific names you follow?

Mr. Lee: I cover pretty much all of the publicly traded asset managers, both the traditional and alternative managers as well as the trust banks. Some examples would be Blackstone (BX), BlackRock (BLK), Franklin Resources (BEN), Invesco (IVZ), State Street (STT), Bank of New York (BK), Eaton Vance (EV), Waddell & Reed (WDR), KKR (KKR), Apollo (AINV), so there are about 25 in total. I also cover SEI Investments (SEIC), which is I guess a cross between asset manager and a processor.

TWST: You released a CIO Survey in February. What were some of key takeaways that investors in the sector should keep in mind?

Mr. Lee: Well, I think a couple of things. I think one important thing is there has been a lot of talk over the years about rate rotation - you know that investors, when rates go back up, will move out of fixed income, and they also buy equities or something along those lines. And for me, I think one of the interesting things about the CIO Survey is that it suggests that type of movement probably isn't going to happen in any great size.

Now remember, the CIO Survey is directed toward institutional asset owners, so one of the things is to extend their investors in asset management stocks to - and have a conversation with someone today along these lines that rates are going to go up - investors are all going to move from fixed income to equities.

In the institutional role, at least lot of what you are seeing is lot of investors change their allocation within fixed income, so they are not necessarily leaving fixed income, but they are changing how they invest in fixed income...

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.

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