|Bid||359.60 x 0|
|Ask||359.80 x 0|
|Day's Range||357.60 - 369.90|
|52 Week Range||274.10 - 435.00|
|Beta (3Y Monthly)||1.29|
|PE Ratio (TTM)||12.47|
|Forward Dividend & Yield||0.17 (4.70%)|
|1y Target Est||404.08|
FT subscribers can click here to receive Moral Money every Wednesday by email. This week we get an inside look at the local costs of climate change, “green quantitative easing” irks France’s central bank governor, and investors target US lobbying associations. Next week, the UN General Assembly convenes for its annual gathering in New York.
(Bloomberg Opinion) -- In October 2016, Henderson Chief Executive Officer Andrew Formica was busy merging his firm with Janus Capital in a bid to join the fund management industry’s $1 trillion club.“Others will say they wish they’d done it,” he said. Fast forward to his current job running the much smaller Jupiter Fund Management Plc. “Big isn’t necessarily better,” he now says.The mergers that produced Janus Henderson Group Plc and Standard Life Aberdeen Plc were supposed to usher in a wave of consolidation in the European fund management industry. That hasn’t happened – and the dismal performance of the two companies since is proving to be a deterrent to any peers thinking of expanding through acquisition.On Wednesday, SLA reported that customers pulled 15.9 billion pounds ($19.4 billion) out of its funds, more than the 13.4 billion pounds analysts had expected.While rising markets boosted performance to drive assets under management up to 577.5 billion pounds by the middle of the year, they are still 5% below their level at the end of 2017. Scale, it seems, isn’t sufficient to attract customer flows.Last week, Janus Henderson reported its seventh consecutive quarter of withdrawals. Assets under management fell to $359.8 billion by mid-year, down from $370.1 billion a year earlier.Those outflows come as performance has suffered. By the end of June, just 66% of the firm’s funds had outperformed their benchmarks in the previous year, compared with 72% on a three-year basis and 80% over five years.It seems fair to speculate that the distraction of combining two firms has taken a toll on the portfolio managers. Melding two different cultures is never easy. That may well explain the reluctance of rivals to merge.For sure, Jupiter’s Formica is cutting his cloth according to his new situation. In his current berth he oversees about $56 billion. But it’s not just the smaller asset management firms that have been put off by the less than stellar experience of Europe’s two biggest fund mergers.Asoka Woehrmann, CEO of DWS Group GmbH, was asked on an earnings conference call a few weeks ago about his firm’s ambitions to become a top 10 player in the industry. “How many mergers happened in this industry and after three years, you are sitting asking the reason why?” he replied. “This is exactly what we are going to avoid.”With about $805 billion of assets, Woehrmann acknowledged that it would take a “transformational deal” for DWS to get into the top tier, where firms need at least $1.3 trillion of assets. But he stressed the need for patience. “To be big is not our main target,” he said. “Increasing shareholder value is the most relevant target.”That certainly hasn’t been the experience of the owners of SLA stock.Mergers may still happen. Deutsche Bank AG, which owns about 80% of DWS, still seems keen to find a partner for the asset manager. UBS Group AG is similarly anxious to do a deal with its funds arm. And now that GAM Holding AG has drawn a line under its troubles, a suitor may be tempted to bid for it.But in fund management, the firm’s most valuable assets walk out of the door every evening. SLA and Janus Henderson are stark reminders of the difficulties that the industry still faces – and that mergers are no panacea.(Corrects spelling of Janus in first paragraph.)To contact the author of this story: Mark Gilbert at email@example.comTo contact the editor responsible for this story: Edward Evans at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Beleaguered Swiss fund manager GAM Holding AG finally has some good news to report that should allow it to draw a line under a terrible year. That could be the catalyst for a buyer deciding the brand is salvageable – while there’s still enough of the business left to buy.On Tuesday, GAM said it had reached a truce with Tim Haywood, the star fund manager it suspended a year ago and subsequently accused of gross misconduct. Each has agreed that “neither party will pursue the other,” with the caveat that the truce is “based on current facts.” Even though Haywood countered by saying he dropped his suit for unfair dismissal because the cost of pursuing it would outstrip any damages, the accord should remove the threat of future litigation and any dirty linen being aired in a courtroom.Customers who were trapped in Haywood’s Absolute Return Bond Funds when GAM froze them a year ago are receiving the last of their money back. On average, they will get 100.5% of the net asset value of their holdings compared with their valuation when GAM halted withdrawals and began liquidating the fund. That should deter the regulators, who have been silent on the matter, from punishing the firm for any lack of oversight. Apart from the eight-month delay between a whistle-blower informing on Haywood and his suspension, GAM appears to have done all it could to safeguard the money entrusted to it.Finally, the eight-month search for a new permanent leader is over with the appointment of BlackRock Inc. veteran Peter Sanderson as chief executive officer. He will start in September, with interim CEO David Jacob taking the role of chairman a month later.So that’s the good news. The bad news is that the business is still in intensive care after a disastrous year. Tuesday’s bump in the share price still leaves it down more than 60% in the past year.Profitability is as underwhelming, with underlying pretax income dropping to 2.1 million Swiss francs ($2.1 million) in the first half of 2019 from 91.3 million francs in the first six months of last year.Net outflows of 7.6 billion francs in the first half overshadowed 3.6 billion francs of market gains, cutting the assets overseen by the investment management division to 52.1 billion francs from 56.1 billion francs at the end of last year. That in turn trashed net fee and commission income, which dwindled to 171.1 million francs from 287.7 million francs in the year-earlier period.To be fair, GAM isn’t alone in struggling to hang on to cash. Jupiter Fund Management Plc announced its sixth consecutive quarter of net outflows on Tuesday, while Man Group Plc saw customers pulling money out in the first three months of the year.But the Swiss firm reckons it saw an “improving flow trend” in June and July with net inflows. That should give shareholders some hope that the worst is now behind it. Moreover, GAM has managed to defend its management fee margin, keeping it almost unchanged from December at just below 54 basis points.In the absence of a buyer, the new CEO is left with the same to-do list facing the head of every other medium-sized asset manager: Cutting costs where possible, trying to halt the erosion in fees, and praying that the market environment remains friendly enough to bolster performance and bring in performance fees and client cash.But as I suggested earlier this month, GAM’s best future may lie in finding a private equity buyer to take it off the market and let it rehabilitate its credibility with customers away from the glare of quarterly public reporting. Sanderson may have other plans; but unless he can do more for the stock price than Tuesday’s pop of about 4% by late morning, shareholders may be better served by him dressing up the company for a sale.To contact the author of this story: Mark Gilbert at email@example.comTo contact the editor responsible for this story: Edward Evans at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
LONDON (Reuters) - Jupiter Fund Management has appointed Wayne Mepham as its new chief financial officer, poaching the executive from rival money manager Schroders in the latest major change to its leadership ...
Britain's Jupiter Asset Management Ltd said on Monday Phil Wagstaff will replace Global Distribution Head Nick Ring. Wagstaff will join the asset manager in June after most recently serving in the same ...
LONDON (Reuters) - Jupiter Fund Management on Tuesday posted a 3.3 percent increase in quarterly assets under management as market gains more than offset net outflows of client cash. Total funds at the ...
British asset manager Jupiter Fund Management said its capital surplus had increased, margins were steady and costs were set to be lower in the year ahead, sending its shares higher on Friday. Hedge funds have bet against Jupiter in recent months after a tough end to the year that saw its flagship bond fund lose assets amid broad market weakness. While that weighed on pretax profits in 2018, down 7 percent to 179.2 million pounds, Jupiter said fee income had held up well at 395.7 million pounds from 392.4 million.