The company has acquired Dexion Capital, an alternative investments group based in London. UBS believes this is a logical extension of the Fidante business but does not materially move the dial.
The broker estimates Dexion will add around 15% to funds management earnings and is 1.5% accretive to earnings on a full-year basis.
The broker retains a Buy rating and $7.80 target.
Sector: Diversified Financials.
Target price is $7.80.Current Price is $6.82. Difference: $0.98 – (brackets indicate current price is over target). If CGF meets the UBS target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).