Funds under management totalled $26.3bn at the end of December, up 1% during the quarter. This was ahead of Credit Suisse estimates and the company has reported its first positive quarter of flows in nearly three years.
However, the broker points out this will not necessarily translate into earnings upgrades. The improvement was driven by $1.1bn of inflow into lower margin cash/fixed income product.
Lower-margin fixed income funds under management increased 13% while higher-margin equities declined -5%. The broker retains a Neutral rating and $41 target.
Sector: Diversified Financials.
Target price is $41.00.Current Price is $43.03. Difference: ($2.03) – (brackets indicate current price is over target). If PPT meets the Credit Suisse target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
