Research
Quoted Asset Management Firms - Financial Update
Item published November 06, 2009PRPi tracks the share performance of 10 quoted fund management firms and compares this with the MSCI World Index to give us further insight into the revenue outlook for the industry.
Listed fund management companies have traditionally been regarded as “geared plays on the market" and it can be observed from the graphs below that there is an almost perfect correlation between the MSCI World Index and fund management firm share prices with no discernible time lag – the first graph gives a 6-year view and the second a 12-month view.
In the period end of March 2009 to end of March 2010 the MSCI World index was up 55% and our asset management basket of stocks was up by 75% (* mix of US and UK stocks – see below for list of firms). Over 3 years the MSCI is down -13% and the basket of stocks is down -23%. Over 6 years the MSCI is up 63% and the basket of stocks up 121%.
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Our research is updated on a monthly basis. If you would like to be notified when these updates are published, please feel free to contact Lauren Pasco at lauren@prpiconsulting.com.
*A composite index of a selection of equally weighted asset management stocks. The quoted asset management stocks are as follows: Alliance Bernstein, Franklin Resources, INC., Blackrock INC., Janus Capital Group INC., T. Rowe Price Group, Aberdeen Asset Management, Man Group and Schroders plc.
Pay must be linked to performance - a done deal
Item published November 02, 2005Research shows superior HR processes can be a lead indicator in increased total return to shareholders (TRS). (Source: The Human Capital Edge, McGraw-Hill 2002). This means that successful firms make a commitment to superior HR processes before superior business results are achieved.
This confirms what many of us have believed for some time - that HR needs to be focused on a small number of key activities that have been proven to add more value than others.
Linking performance to reward is the single most significant factor. Making a commitment to paying well attracts the best people who will deliver the results - not really rocket science!
Linking performance to reward, as well as being important in itself, also impinges on all the other positive factors making it a quintuple whammy. These other factors are:
- Linking performance to reward (16.5)
- Promoting a collegial, flexible environment (9.0)
- Excellence in recruitment and retention (7.9)
- Communications integrity (7.1)
*Source: Watson Wyatt Human Capital Index 2001
Interestingly, this research has also found that some key HR interventions, if not properly and professionally implemented, can destroy value, such as developmental training and 360 degree feedback.
All in all, this research encourages HR professionals to get the basics right.
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