Citi cautious on asset managers

|By:, SA News Editor

Reviewing December asset-gathering disclosures by AllianceBernstein (AB +1%), Artisan Partners (APAM -0.7%), Franklin Resources (BEN +2.1%), Invesco (IVZ +0.7%), and Legg Mason (LM +1%), Citigroup's William Katz, Neil Stratton, and Steven Fullerton warn the names could be vulnerable to a correction after big runs over the last 6-12 months.

Behind the moves were hopes of rising organic growth prospects, and a mix shift of investor preferences towards equities. "We believe such thesis may begin to break down - and traditionals may be vulnerable to correction - as underlying organic growth dynamics appear mixed overall and by asset, client, and geographical breakdowns. Furthermore, lead indicators are muddled as market dynamics are less favorable thus far in 2014 and industry data are choppy.'