Shares in asset managers were among the most reliable financials during 2013, giving decent growth alongside well-covered dividends. Guinness manager Will Riley picks two asset managers set for more share price appreciation.
Last year was a good one for asset managers, with rising equity markets bringing cheer for both the businesses and their stocks. The MSCI World Index returned 21.2% to the end of December 2013, prompting significant investment inflows. Aberdeen’s acquisition of SWIP triggered an instant 14.7% jump in its share price and earned the sector mainstream media attention. Over the long term, we expect asset managers to grow their earnings and free cashflow faster than the broad market. While last year was a good year for the sector, we remain optimistic about its prospects. One company th...
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