Citi marks to market for the September quarter, making some allowance for the drop in equity markets since September 30. The latest industry data suggests net fund outflows have continued at similar levels and performance fees are expected to be seasonally weaker.
Beyond FY18 the broker trims estimates for flows in performance fees but incorporates a further modest share buyback. Neutral rating maintained. Target is reduced to $36.35 from $43.60.
Sector: Diversified Financials.
Target price is $36.35.Current Price is $33.16. Difference: $3.19 – (brackets indicate current price is over target). If JHG meets the Citi target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).