Asset Managers Could Get EPS Boost From Strong Returns

Traditional asset managers are expected to clock higher EPS thanks to stronger fund returns and slightly better markets, note Morgan Stanley analysts.

Thomas Whitehead, Betsy L. Graseck and Elizabeth Elliot of Morgan Stanley in their report dated July 3, 2014 on “US Asset Managers” have revised their estimated EPS for traditional asset manager above consensus.

Ups asset managers EPS estimates

The Morgan Stanley analysts have enhanced their traditional asset manager EPS estimates by an average of ~1.5% for 2Q14 as depicted below. Their optimistic view largely reflects slightly stronger fund returns.

Similarly the analysts have also enhanced their EPS estimates by an average of ~2% for CY 14-15e, as depicted...