JP Morgan Provides Color on Asset Managers

JP Morgan provided color on the asset managers sector. In a research report published today, JP Morgan paints relatively bleak picture for the sector. In the report, JP Morgan states, “We are lowering estimates for the asset managers based on poor market conditions in May and the first half of June. While the equity markets have proved resilient over the last couple of trading days, we feel that estimates are too high and need to be lowered. That said, asset managers have well underperformed the equity markets and valuations indicate that the stocks are oversold. … Our favorite Overweight is Invesco. We rate Federated Underweight.” On Wednesday, Invesco

lost 2.86% of its value to close the day at $23.36.