Investment Managers Earnings On Jul 26: AMP, JNS, TROW, WDR
Zacks Investment Research | Jul 24, 2016 09:07PM ET
The major part of second quarter was plagued by uncertainty related to the U.S. monetary policy, global economic growth and the movement of global equity markets. Investment management (part of the broader Finance sector) performed decently over the past several quarters. Volatility in the second quarter was heightened amid Brexit concerns, which became more evident in June. Though the factors leading to volatility differed from the first quarter, it yielded quite similar results.
Equity markets revealed mixed results during the quarter. In the U.S. markets, the S&P 500 was up 1.7% , while in international equity markets, MSCI EAFE index was down 1.5% at the end of second quarter, both on a year-over-year basis .
Prior to Brexit, the U.S. markets were rallying but about 5% of all stocks were sold off in the next two trading days post the vote. However, the stocks recovered in the last three days of the quarter.
During the quarter, fixed income generated positive returns as investors ran for safe haven assets due to the prevailing global growth concerns and the uncertainty caused by Brexit and Fed rate hike. Consequently, fixed income prices increased and resulted in reduced yields. Notably, following the end of second quarter, the 10-Year Treasury yields came in at new all-time low of 1.37%. As a result, assets under management (AUM) for many investment managers are expected to escalate.
Also, investment managers are expected to be impacted by the strengthening of the U.S. dollar on AUM mix, considering their global footprints.
Some investment managers, including BlackRock, Inc. (NYSE:BLK) and The Blackstone Group L.P. (NYSE:BX) have released their results, wherein the companies have posted growth in AUM.
Notably, per our Zacks Investment Research
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