Non-Tapering: Short-term Impact On Brokers And Asset Managers

Susquehanna Analysts Doug Sipkin and Justin LaSalle-Tarantin analyze the fallout on asset managers and brokers of the Fed’s decision not to press ahead with the much-feared ‘tapering.’

Non tapering impact on asset management side

Franklin Resources, Inc.(NYSE:BEN) is one of the biggest beneficiaries of the Fed’s largesse. The two heavyweight products of the firm, namely the Templeton Growth Fund, Inc. Class A (MUTF:TEPLX) and on Templeton Global Bond Fund Class A (MUTF:TPINX) had turned in an excellent record during September, and the Fed’s action coming on top of that was an added bonanza.

The passive ETF managers such as iShares are also expected to benefit....