Better performance fees than we were expecting have driven the earnings number sharply higher. |
It's extraordinary ... People were saying this business has gone ex-growth. The shares look firmly underpinned at current levels. |
Just as the institutional long-only market has become more focused on value added, retail funds are likely to follow gradually in the years to come. |
The numbers were mostly in line with what we were expecting. We've marginally upped our profit forecast to just above 25 million pounds and are holding our overweight recommendation. |
The rugby lads won the World Cup and from then things haven't gone quite as they would have wanted since then, |
There will be plenty of opportunities for Man Financial... Refco is one of Man Financial's largest competitors, |
They have the opportunity to increase their share of the futures brokerage business ... They may be able to pick up clients and individuals who work at Refco. |
This year profits are going to be down on last year [but] most of them will still make money. |
Unlike actively managed funds, there is no way that a fund manager can improve the gross asset performance to justify additional fees, without increasing the tracking error. Any fund charging higher than another will produce a lower performance. The range of charges is substantial. |
We are likely to upgrade our 2006 numbers slightly as a result, and do not believe that the shares look expensive relative to the peer group, once allowance is made for the cash on the balance sheet. |
While many commentators question the sustainability of hedge fund fees, we would highlight the long-only retail arena as an area where some fees do not reflect value added for the customer, but rather the distribution capabilities of the product manufacturer, |