BLK - Evercore urges 'head on a swivel' with expectations for asset management tickers

Evercore ISI is taking the occasion of rolling out its 2022 EPS estimates for financial names to evaluate expectations for traditional asset managers' flows, fee rates, margins and capital return. As it lays out numbers for "the double deuce," the firm thinks asset-management winners will be "those with consistent organic growth, aided by forward-looking thinking, high capital return" - asset management "is supposed to be a capital-light biz" - with not a lot of leverage. Digging in, Evercore doesn't expect much market-related growth in fixed income ("flows could remain OK"), and on the equity side, zero rates could fuel higher equity markets but that's "a tough one to continue to model up and to the right" so gut feeling is the stocks could climb the wall of worry. On products, big growth drivers will be ETFs, ESG, income-oriented products and alternative asset classes, even with ongoing fee compression in active

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Evercore urges 'head on a swivel' with expectations for asset management tickers