% of AUM, Andreas Rialas, ARGO, Argo Group, asset managers, Charlemagne Capital, Dolphin Capital Investors, Ex-Cash Ratios, F&C Asset Management, Impax Asset Management Group, Investor Relations, Kyriakos Rialas, Miton Group, NAV discount, The Argo Fund, Third Point, UK
In April, I took a closer look at the universe of UK-listed asset managers. A key piece of research was a (relatively) simple analysis which focused on financial stability & market valuation – this study also offered a useful peer comparison with Argo Group Ltd. (ARGO:LN) (& see this recent post).
Frankly, the numbers (plus the rest of this post) speak for themselves, but let’s have a taste of the main highlights:
|Name||Ticker||Net Cash/Inv as % of Mkt Cap|
|F&C Asset Management||FCAM||(23)%|
|Liontrust Asset Management||LIO||3.9%|
|Aberdeen Asset Management||ADN||7.9%|
|Jupiter Fund Management||JUP||8.4%|
|Polar Capital Holdings||POLR||16%|
|Impax Asset Management Group||IPX||59%|
It’s encouraging to see the entire sector now enjoys robust financial health. Only F&C Asset Management (FCAM:LN) is in a net debt position – all other companies sport net cash & investments on their balance sheets. But it’s also clear this healthy financial position is not the key driver of market valuations – for Argo’s peer group, net cash/investments only represents a median 17% of market cap. On the other hand, Argo’s $23.6 mio of net cash/investments amounts to a whopping 175% of its market cap.