Credit Suisse has marked to market UK and global fund manager earnings on Brexit, Aussie fund managers are less affected. It's a good day for it.
After the UK managers have copped downgrades of around 10 per cent, CS favours Henderson over BTIM because Henderson is cheaper - 13 times earnings versus 17 for BT. The prospect of further losses for global equity markets cannot be discounted but are not factored into these forecasts.
"Operationally, Brexit is unlikely to impact the global asset managers to any great extent. Many operate under a passporting arrangement that allows them to sell into the EU," the broker says.