Asset managers may be in for a rough Q4, Merrill Lynch
analyst Cynthia Mayer
wrote in a note to clients picked up by Reuters
. While Mayer thinks that although asset managers are well positioned for the long haul, they are in for a rough ride in Q4 as assets under management have fallen rapidly with the market. She thinks that bigger firms will have more troubles as their fixed costs are higher.
, Mayer said, is well positioned because of its defensive asset mix and its money-market funds which are now supported by the government. Franklin Templeton
have taken a hit because of the rally in the U.S. dollar, Mayer said.
In August, before the current crisis hit its boiling point, a group of Merrill analysts also picked Federated as the top asset manager. (see MFWire
August 25, 2008).
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