< The 2016 All-Europe Research Team
Bruce Hamilton & team
Morgan Stanley
First-place appearances: 5
Total appearances: 17
Team debut: 1989
Morgan Stanley’s regional specialty finance team in London repeats in second place under the direction of Bruce Hamilton. The analysts hold an equal weight position on their sector, advising that "support to earnings and valuations from European quantitative easing is driving continued risk rotation as retail clients seek returns, given minimal returns from deposits and core bonds," explains Hamilton, 42. In particular, QE is "supporting momentum for asset managers with compelling product offerings and investment performance," he says. On this theme, U.K.-based Henderson Group is his group’s key pick, "given its outsize net new money growth, driven by strong product offerings." Regarding the exchanges subsector, the researchers foresee performance "being driven by continued cyclical improvement in Europe, from increasing volatility as central banks begin to move at different speeds and given potential for further sector consolidation and cost delivery," he reports. Their preferred diversified financial services name is pan-European exchange operator Euronext. "We see an attractive blend of cost self-help driving further positive earnings revisions momentum and capital return, given our consensus expectations for dividend payout in 2016 and 2017," Hamilton sums up.