STOCKS NEWS EUROPE-Schroders rises as MS upgrades rating

Shares in Schroders gain 1.3 percent, the top riser on a falling FTSE 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 reduced pressure in European retail, mean that our estimates are now marginally ahead of consensus."

"Despite some upturn in cyclical flows, winning share of a stagnant pie will be the key stock driver. Our stock calls reflect our conviction that growth will be confined to six 'axes': Exchange traded funds, 'income', multi-asset, developed to emerging market, best-of-breed alternatives and liability driven investment/outcome," Morgan Stanley says in a note.

It says its winners from here will be those firms able to position for market share in key asset allocation pools and its top picks are Aberdeen Asset Management Ashmore and Partners Group .

Morgan Stanley remains cautious on Man Group . Reuters messaging rm://