UBS observes fund and life flows were reasonably resilient in the first quarter. Total life flows of $600m delivered book growth of 3.4%. Sales were also ahead of the brokers “conservative” expectations.
UBS suspects there is some modest margin pressure, given the composition of flows, but this is likely offset by a re-allocation of assets away from cash and fixed income. The broker retains a Neutral rating and raises the target to $6.25 from $6.10.
Sector: Diversified Financials.
Target price is $6.25.Current Price is $6.34. Difference: ($0.09) – (brackets indicate current price is over target). If CGF meets the UBS target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
