European Asset Managers: Q2:26 Preview - Strong markets drive EPS & price target upgrades

Research evidence excerpt

European Asset Managers: Q2:26 Preview - Strong markets drive EPS & price target upgrades

Global Research

8 July 2026ab

European Asset Managers Equities

Europe including UKQ2:26 Preview - Strong markets drive EPS &

price target upgrades Diversified Financial

Michael Werner

Analyst

michael.werner@ubs.com

Upgrades to our 2026-28E EPS outlook for most of the group +44-20-7568 8086

For most of the names we cover, we raise our 2026-28E EPS on the back of the strong Haley Tam

Q2 market tailwinds. Q2 flows were moderate (but healthy) as monthly flows improved Analyst

sequentially throughout the quarter, rebounding from the March outflows. We raise all haley.tam@ubs.com

of our price targets for the listed asset managers (by 4-10%) on the back of the stronger +44-20-7567 6176

revenue and earnings outlooks. We have downgraded Man Group in a corollary report. Amit Jagadeesh

Given the recent share price performance, valuations are no longer cheap for the group Analyst

but are not yet expensive. amit.jagadeesh@ubs.com

+44-20-7567 9705

Q2:26 - A very positive environment for the asset managers

In Q2:26, European, US, EM & Asia Pac equity markets saw returns of +11%/+14%/

+23%/24%, respectively. While DM bond market returns were muted, EM debt was

+4.5% in the quarter. As a result, we expect the strongest QoQ market tailwinds and the

strongest YoY growth to AUMs in 5+ years. FX rates were largely range-bound and are

unlikely to play a material role in AUM growth in Q2.

Valuation multiples are now inline with fund flows

The group now trades at 13.0x forward earnings, inline with the long-term average for

the industry. As we show in Figure 1Thegapbetwentheasetmanagervaluationsandfundflowshasnarowedoverthepast12-18months, the valuation for the group is now broadly inline