A rising tide lifts all boatsand thesethreeinvestment-related stocks have all beenlifted byrisingFTSE 100 fortunes. But could the tide be set to turn?
Aberdeen Asset Management
After a disastrous 2015, whenAberdeen Asset Management (LSE: ADN) saw its share price halve from around 500p to 250p, investors were due a reprieve. Aberdeen was hit hard by the slowdown in its chosen specialist region of emerging markets, as disgruntled investors headed for the exits in search ofmore rewarding pastures. Worryingly, net fund outflows have continued in 2016, with8.9bn bolting in the third quarter. But the good news this time roundis that the losses have been more than offset by 17.5bn in asset appreciation.Assets under management duly totalled 301.4bn in June, up from 292.8bn three months earlier.
Fund outflows areslowing asinvestors recapture their faith in emerging markets, as anybody who understands that investments go in cycles would have expected. But the tide has really turned in favour of Aberdeen since Brexit, and the stock is up 22% in the past three months. Sterling weakness has boosted the value of its overseas assets under management, and asthe pound plumbsnew depths, the next quarterly figure will make interesting reading. Despite its resurgence, Aberdeen still trades at just 11.03 times earnings and yields 5.73%. Sothe valuation doesnt look toppy, even if the stock market does.
Schroders
Asset management groupSchroders(LSE: SDR)also fell sharply after the last stock market peakin April 2015, hit by falling profits and a sharp slowdown in first-half net inflows, from 8.8bn tojust 0.7bnyear-on-year. In July, chief executive Peter Harrison blamed theBrexit vote for the companys short-term slips and warned of a further hit toinvestment demand. Well, he got that wrong, didnt he? Brexit hascome charging to the rescue, with markets surging on the back of fresh monetary stimulus and the falling pound.
The Schrodersshare price is up 21% in the last three months, echoingAberdeens figure, further evidence that stock market trends are driving performance rather than individual company news. Schroders struggles when the poundis strong and will cash in oncurrentweakness. Itsstockis more expensive than Aberdeen however, trading at 15.85 times earnings and yielding just 3.11%.
St Jamess Place
Wealth managerSt Jamess Place(LSE: STJ)has had a great Brexit, its share price soaring28% inthe last three months. Not that it needed this artificial booster as its up 200%over the past five years. The advisory groupreportedrecord inflows of 5.3bn in July, up from 4.4bn one year earlier, lifting totalgroup funds under management from 55.5bn to 65.6bn onthe year. The group grewstronglydespite recent market turbulence, with adviser numbers, profits and just about everything else rising sharply.
The post-referendum market surge hasfloated its boat but before you get too excited bewareits priceyvaluation of 24.35 times earnings, witha relatively lowly yield of 2.88%.At this price, St Jamess may no longer be the Place to be.
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Harvey Jones has no position in any shares mentioned. The Motley Fool UK has recommended Aberdeen Asset Management. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.