Hannam & Partners Financial Services Weekly – The incoming Labour Govt have ticked a few important boxes: first, a decent working majority; second, financial markets are largely unmoved (cable, FTSE, and gilts all steady) – on the face of it our new Chancellor looks and sounds as though she will demand fiscal discipline whilst promoting a pro-growth agenda (which of course she needs to do): and last, UK business leaders seem genuinely open to her economic rhetoric. But it is of course early days and her fiscal channel is narrow – that’s to say unless economic growth comes to the rescue she will face some difficult choices indeed. And there is also the bigger need for her leader and party to establish a clear political mandate from a historically low share of the vote. This is surely easier said than done.
UK wealth management assets have now had a +9-10% following wind from rising markets this year, of which 1.4pp has come since the end of June. Relative share price performance has been good YTD, with Tatton, Integrafin and AJB soaring, in part catalysed by the bids for Mattioli Woods and Hargreaves Lansdown. The asset managers have had a tougher time as outflows have continued, with all the equity managers underperforming. We note below that outflows seem now to have reduced a little, as we saw in the Calastone data a couple of weeks back.
This week we take a look at news from Impax AM and Liontrust AM, we dwell on Plus500’s H1 results, and what we believe the market is yet to price, and then take a peek at Argentex, the FX business which has been most unequal to Equals Group and to Alpha Group.
https://lnkd.in/eH6CV2e9
