Broker snap: Credit Suisse cuts Ashmore, F&C and Jupiter

6th Jan 2012 09:56

Analysts at Credit Suisse have this morning decided to downgrade several of the UK´s fund managers as part of a wider reassessment of European asset managers. While they admit that equity market performance recovered strongly globally during quarter four they also, "expect investors to remain cautious on the sustainability in the recovery, not helped by delays in a resolution to the European macro issues leading to subdued net fund flows during Q4 as highlighted by industry fund flow to date."That is not say that the sector´s valuation is expensive, but it is trading approximately 30% above the 2008/2009 trough. Consequently, and given the high level of macro uncertainty, low levels of risk appetite and limited self help they we believe it is still too early to take an 'overweight' position at the sector level. Credit Suisse lowers Ashmore to neutral (from 'outperform'), F&C to 'underperform' from 'neutral' and Jupiter Fund Management to 'neutral' from 'outperform'.In parallel however, the broker has decided to retain an 'outperform' rating on Henderson, Intermediate Capital and Man Group, " all trade at an estimated fiscal year 2012 price to earnings discount to the sector, provide sector leading dividend yields for 2012 ranging from 7% -11% and offer the highest potential upside to current share prices," Credit Suisse adds. AB