Shares in Schroders gain 1.3 percent, the top riser on a fallingFTSE 100 index, as Morgan Stanley upgrades its rating for the firm to"equal-weight" from "underweight" in a broader note on global fund managers,according to traders.
The bank upgrades Schroders "as product breadth in key allocation areas(e.g. multi-asset) and in geographical distribution, combined with reducedpressure in European retail, mean that our estimates are now marginally ahead ofconsensus."
"Despite some upturn in cyclical flows, winning share of a stagnant pie willbe the key stock driver. Our stock calls reflect our conviction that growth willbe confined to six 'axes': Exchange traded funds, 'income', multi-asset,developed to emerging market, best-of-breed alternatives and liability driveninvestment/outcome," Morgan Stanley says in a note.
It says its winners from here will be those firms able to position formarket share in key asset allocation pools and its top picks are Aberdeen AssetManagement Ashmore and Partners Group .
Morgan Stanley remains cautious on Man Group . Reuters messaging rm://firstname.lastname@example.org
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