Asset Management - Deutsche Banc Alex. Brown's Glenn Schorr Initiates Coverage of the Sector

'Facing a Mid-Life Crises'



Apr 20, 2001, 01:00 ET from Deutsche Banc Alex. Brown

    NEW YORK, April 20 /PRNewswire Interactive News Release/ -- Deutsche Banc
 Alex. Brown analyst Glenn Schorr launched coverage of the asset management
 sector with the initiation of four stocks.  Franklin Resources Inc.
 (NYSE:   BEN)($44.25) was started with a BUY investment rating. AMVESCAP PLC
 (NYSE:   AVZ)($35.00), Stilwell Financial Inc. (NYSE:   SV)($32.00), and
 T. Rowe Price Group Inc. (Nasdaq:   TROW)($36.00) were started at MARKET
 PERFORM.
     Schorr's outlook for the asset management group is very bullish over the
 long term, but his near-term view is more cautious.  "We think that we have
 entered a period of more normal returns in the asset management business
 driven by saturation in the U.S. market, high competition, greater expense
 pressures, increasingly powerful distributors, a more transparent and
 transient market, and new product alternatives to mutual funds," said Schorr.
 "However, we believe there are certain fundamental reasons why asset growth
 will continue, and that those asset managers with certain attributes will
 continue to see solid growth in both revenues and earnings.
     The following trends support Schorr's positive long-term opinion of the
 sector:
 
     -- Demographic drivers are powerful and still in place.  In the U.S., the
        growing pre-retirement group, expected to grow 50% over the next
        15 years, supports the increased demand for investment products.
 
     -- The asset management business is very profitable.  Schorr expects EPS
        growth of 10-15% over the next five years and believes margins of
        30-35% are sustainable .
 
     -- Schorr believes the consolidation wave should continue.  Scarcity value
        is high as existing players continue to desire scale and look to add
        more stable fee-based revenue streams.
 
     Deutsche Banc Alex. Brown represents the Investment Banking activities of
 Deutsche Banc Alex. Brown Inc. (US) and Deutsche Bank Securities Ltd.
 (Canada). Deutsche Banc Alex. Brown and Deutsche Bank Securities Ltd. are
 subsidiaries of Deutsche Bank AG.  With assets of about Euro 940 billion and
 more than 98,000 employees, Deutsche Bank offers its clients unparalleled
 financial services throughout the world in over 60 countries. It ranks among
 the leaders in asset management, capital markets, corporate finance, custody,
 cash management and private banking. Deutsche Bank is organised in two
 customer-oriented Groups: "Corporate and Investment Bank" (CIB) and "Private
 Clients and Asset Management" (PCAM). The keys to the Bank's success remain
 constant: customer focus, the spirit of innovation, a broad range of product
 skills combined with technological power and financial strength delivered by
 highly skilled professionals.
     Deutsche Banc Alex. Brown Inc. maintains a net primary market in the
 common stock of T. Rowe Price Group Inc.
     Franklin Resources Inc., Stilwell Financial Inc., and T.Rowe Price Group
 Inc., are optionable stocks.
     Within the past three years, Deutsche Banc Alex. Brown Inc. has managed or
 comanaged a public offering of AMVESCAP PLC.
     The author of this comment has a long/short position in the common shares
 of Stilwell Financial Inc.
 
     Information herein is believed to be reliable and has been obtained from
 sources believed to be reliable, but its accuracy and completeness cannot be
 guaranteed.  Opinions, estimates, and projections constitute our judgement and
 are subject to change without notice.  This publication is provided to you for
 information purposes only and is not intended as an offer or solicitation for
 the sale of any financial instrument.  Deutsche Banc Alex. Brown Inc. and its
 affiliates worldwide, may hold a position or act as market maker in the
 financial instruments of any issuer discussed herein or act as advisor or
 lender to such issuer.  Transactions should be executed through a Deutsche
 Bank entity in the client's home jurisdiction unless otherwise permitted by
 law.  Deutsche Banc Alex. Brown Inc. is a member of NYSE and NASD.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X13334834
 
 

SOURCE Deutsche Banc Alex. Brown
    NEW YORK, April 20 /PRNewswire Interactive News Release/ -- Deutsche Banc
 Alex. Brown analyst Glenn Schorr launched coverage of the asset management
 sector with the initiation of four stocks.  Franklin Resources Inc.
 (NYSE:   BEN)($44.25) was started with a BUY investment rating. AMVESCAP PLC
 (NYSE:   AVZ)($35.00), Stilwell Financial Inc. (NYSE:   SV)($32.00), and
 T. Rowe Price Group Inc. (Nasdaq:   TROW)($36.00) were started at MARKET
 PERFORM.
     Schorr's outlook for the asset management group is very bullish over the
 long term, but his near-term view is more cautious.  "We think that we have
 entered a period of more normal returns in the asset management business
 driven by saturation in the U.S. market, high competition, greater expense
 pressures, increasingly powerful distributors, a more transparent and
 transient market, and new product alternatives to mutual funds," said Schorr.
 "However, we believe there are certain fundamental reasons why asset growth
 will continue, and that those asset managers with certain attributes will
 continue to see solid growth in both revenues and earnings.
     The following trends support Schorr's positive long-term opinion of the
 sector:
 
     -- Demographic drivers are powerful and still in place.  In the U.S., the
        growing pre-retirement group, expected to grow 50% over the next
        15 years, supports the increased demand for investment products.
 
     -- The asset management business is very profitable.  Schorr expects EPS
        growth of 10-15% over the next five years and believes margins of
        30-35% are sustainable .
 
     -- Schorr believes the consolidation wave should continue.  Scarcity value
        is high as existing players continue to desire scale and look to add
        more stable fee-based revenue streams.
 
     Deutsche Banc Alex. Brown represents the Investment Banking activities of
 Deutsche Banc Alex. Brown Inc. (US) and Deutsche Bank Securities Ltd.
 (Canada). Deutsche Banc Alex. Brown and Deutsche Bank Securities Ltd. are
 subsidiaries of Deutsche Bank AG.  With assets of about Euro 940 billion and
 more than 98,000 employees, Deutsche Bank offers its clients unparalleled
 financial services throughout the world in over 60 countries. It ranks among
 the leaders in asset management, capital markets, corporate finance, custody,
 cash management and private banking. Deutsche Bank is organised in two
 customer-oriented Groups: "Corporate and Investment Bank" (CIB) and "Private
 Clients and Asset Management" (PCAM). The keys to the Bank's success remain
 constant: customer focus, the spirit of innovation, a broad range of product
 skills combined with technological power and financial strength delivered by
 highly skilled professionals.
     Deutsche Banc Alex. Brown Inc. maintains a net primary market in the
 common stock of T. Rowe Price Group Inc.
     Franklin Resources Inc., Stilwell Financial Inc., and T.Rowe Price Group
 Inc., are optionable stocks.
     Within the past three years, Deutsche Banc Alex. Brown Inc. has managed or
 comanaged a public offering of AMVESCAP PLC.
     The author of this comment has a long/short position in the common shares
 of Stilwell Financial Inc.
 
     Information herein is believed to be reliable and has been obtained from
 sources believed to be reliable, but its accuracy and completeness cannot be
 guaranteed.  Opinions, estimates, and projections constitute our judgement and
 are subject to change without notice.  This publication is provided to you for
 information purposes only and is not intended as an offer or solicitation for
 the sale of any financial instrument.  Deutsche Banc Alex. Brown Inc. and its
 affiliates worldwide, may hold a position or act as market maker in the
 financial instruments of any issuer discussed herein or act as advisor or
 lender to such issuer.  Transactions should be executed through a Deutsche
 Bank entity in the client's home jurisdiction unless otherwise permitted by
 law.  Deutsche Banc Alex. Brown Inc. is a member of NYSE and NASD.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X13334834
 
 SOURCE  Deutsche Banc Alex. Brown