Broker snap: Credit Suisse reduces forecasts at Schroders

24th Jun 2011 11:45

Credit Suisse has reduced its forecasts for asset management firm Schroders given the decline in equity markets in the last month."We have reduced our AUM [assets under management] forecasts for this year and next year by 6-7% reflecting lower markets and slightly more conservative flow assumptions," said analysts Rupak Ghose and Gurjit Kambo.The broker doesn't see a recovery in retail (intermediary) flows until 2012 as a result of volatile markets and increasing risk averseness. "We have reduced our 2011E net inflow forecast from £11.7bn to £9bn including £0.7bn for retail vs £2.2bn previously."As for this year, Schroders is to report its first half results on 4 August, in which Credit Suisse expects to see a slowdown in institutional inflows from £2.8bn in the first quarter to £1bn in the second.A 'neutral' stance is maintained, while the target price is scaled back to 1,600p, from 1,700p.---BC