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What Brexit Means for Asset Managers

Some will be impacted more than others, but we expect all of them to be caught in the undertow of declining global markets in the near term.

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With the United Kingdom voting narrowly June 23 to exit the European Union, there will be ramifications for not only the British pound but for the value of equity and fixed-income assets. While the U.S.-based asset managers we cover are not quite as exposed as firms based in the U.K. or Europe, there will be an impact on their assets under management levels in the near term as global markets react negatively to the news. The longer-term problem for those operating in the region will be the increased costs associated with having to operate in a less cohesive market.

While most of the asset managers we cover have exposure to the region by virtue of investing in the stocks and bonds of European-based firms, a handful also have exposure by way of clients being domiciled in the region--namely,  BlackRock (BLK),  Franklin Resources (BEN),  Invesco (IVZ),  Legg Mason (LM),  AllianceBernstein (AB), and  Affiliated Managers Group (AMG). Less exposed firms include  T. Rowe Price (TROW), Federated Investors (FII),  Eaton Vance (EV),  Janus Capital Group (JNS),  Waddell & Reed (WDR), and  Cohen & Steers (CNS).

Greggory Warren does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.