BofA reiterates 'underperform' rating on UK asset managers amid subdued flows

Alternative managers more resilient

The Bank of America has reiterated its ‘underperform’ rating on traditional UK asset managers, following continued client risk aversion and subdued fund flows.

In a research note today (10 July), analysts Alexandre Tissieres and Hubert Lam explained they remain cautious on the asset management sector, with Schroders, abrdn, Jupiter, Ninety One and Ashmore unlikely to re-rate higher until flows improve. "Given continued macro uncertainty from rising rates, high inflation and geopolitical risks, we do not see an imminent turnaround," they added. Although markets stabilised in equities and fixed income in the second quarter of the year, risk appetite is subdued given concerns about inflation, rates, and economic growth, which has resulted in se...