- In their initiation note on the UK asset manager sector, analysts at HSBC reckon the industry is well-placed for growth, despite rising regulatory costs.

Through efficiency improvements the bank forecasts 8% pa earnings growth, translating into 7% pa dividend growth over the next 3 years.

HSBC initiated coverage as follows:

- St James's Place [LON:STJ] and Jupiter [LON:JUP] as 'Buy',

- Hargreaves [LON:HL.], Schroders [LON:SDR], Ashmore [LON:ASHM] and Aberdeen [LON:ADN] as 'Hold'.

Describing the positive themes for the sector, analysts commented:

"We see GBP10bn pa of net inflows into UK institutional over 2016-19e from LDI and third-party insurer assets and GBP10bn pa of net inflows into UK retail driven by increasing demand for ISAs and general investment accounts.

"AUM growth for well-positioned asset managers should alleviate revenue margin pressures from competition and evolving product mix."

At 3:57pm:

[LON:ASHM] Ashmore Group PLC share price was +0.2p at 314.8p

[LON:HL.] Hargreaves Lansdown PLC share price was +3.5p at 1360.5p

[LON:JUP] Jupiter Fund Management plc share price was -2.15p at 413.05p

[LON:SDR] Schroders PLC share price was -12.5p at 2929.5p

[LON:STJ] St Jamess Place PLC share price was -7.5p at 1070.5p

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