Dolphinvest Global Asset Managers Barometer

On the upswing


After the crisis year 2018 the asset management industry is on the upswing again. Since the beginning of the year our global barometer shows positive ratings which points towards a more optimistic mood in the capital market regarding the outlook for the asset management industry. Additionally, listed asset managers as a group have been able to outperform the broad equity market since the beginning of this year. We refrain from gloomy predictions. 

Source: Euroswitch, Morningstar, as of 23 June 2019. Past performance is not a reliable indicator of future earnings and is not constant over time.

 

According to IPE Research, 29 asset management companies worldwide started 2018 with more than 500 billion euros assets under management. Around one third of the 29 companies is listed.  The chart below shows the performance of the shares of these companies since the IPO of DWS in the first quarter 2018 (highlighted in red). None of the total of nine shares were able to outperform the broad stock market in the period under review.  

Source: Euroswitch, Morningstar, as of 23 June 2019. Past performance is not a reliable indicator of future earnings and is not constant over time.

 

The relatively good performance of the DWS share in the first months of this year was probably due to reports about possible mergers of DWS with other asset managers but surely also due to a pleasing reverseal of the net inflows in the first quarter 2019. With an organic growth rate of plus 0,38%, DWS was in the middle range of this peer group. 
 

Source: Dolphinvest; Statements of the companies (without Standard Life Aberdeen). Past performance is not a reliable indicator of future earnings and is not constant over time.

 

At the middle of the year shares of selected product specialists were far ahead of Wisdom Tree, a pure ETF provider (=zero line in the following chart), but also ahead of Blackrock (highlighted blue line). For some time now the market has favored asset managers who specialise in one product segment – in particular in the alternative area and there on private markets. Although the whole world seems to be impressed by the commercial success of ETFs, the market obviously believes that one can earn more money with specialised asset managers than in the mass index business.

 

Despite the dark clouds at the geopolitical sky and the unclear economic outlook we stick to our assessment from the beginning of the year: 2019 will be better for the asset management industry than 2018.

 

Frankfurt, 11 July 2019

 

Customised evaluations of our barometer universe area are available on request.

 

In case of queries, please contact

Michael Klimek
E-Mail: mklimek@dolphinvest.eu
Tel.: +49 69 339978-14


Disclaimer: The “Dolphinvest Global Asset Managers Barometer” serves information purposes only. The data, comments and analysis reflect the opinion of Michael Klimek, Managing Partner at Dolphinvest, related to the markets and their trends on the basis of his own expertise, economic analysis and information currently known to him. They shall not under any circumstances be construed as comprising any sort of offer. All potential investors should consult their service provider or advisor and exercise their own judgement independently on the risks inherent to each investment and its suitability to their own personal and financial circumstances.

What is the Dolphinvest Global Asset Managers Barometer?

Source: Morningstar, EuroSwitch. As of 23 June 2019. This performance is related to past years, is not a reliable indicator of future performance and is not constant over time.

 

 

Regularly we publish the “Dolphinvest Global Asset Managers Barometer“. This barometer is a tool for us to analyse the current situation of the asset management industry and to illustrate the view of international investors on the industry. For this reason, the “Dolphinvest Global Asset Managers Barometers’” publication is by no means a buy or sell recommendation.

The barometer displays the performance of more than 70 listed asset management companies in EUR. For inclusion in the barometer, it is a mandatory requirement that a minimum of 75% of the overall revenue of a company is derived from asset management fees. Banks and insurance companies that have major asset management entities will, therefore, normally not be included in the index. The barometer represents all continents.

The transparency of listed asset management companies enables us to consolidate relevant information on the individual asset management companies included in the barometer into generally valid statements and to take them into account in our consulting work. Depending on the mandate, we divide the universe of constituents of the “Dolphinvest Global Asset Managers Barometer“ into groups of similar companies against which we then benchmark our clients.
 

For a more detailed analysis and an interpretation of the findings, please contact:

Michael Klimek
Email: mklimek@dolphinvest.eu
Phone: +49 69 33 99 78 - 14