BT Investment Management Ltd

BTT Details
· Exit of Executive International hurting the stock sentiment: BT Investment Management Ltd (ASX: BTT) stock fell over 4.5% on January 17, 2017 as the group reported that Mr Gavin Rochussen, Group Executive International, has resigned. Mr Gavin Rochussen served five years with the BTT group and is now moving to a UK boutique asset management firm. On the other hand, the group’s Funds under management (FUM) rose $3.0 billion for the quarter ended 31 December 2016. J O Hambro Capital Management (JOHCM) performance fees currently contributed $28.0m (£16.5m) in fee revenue during the year ended 31 December 2016. The performance fees is expected to contribute over $10.6m to the group’s cash net profit after tax (and statutory net profit after tax) for the current financial year ending 30 September 2017.

· Recommendation: BTT stock rallied over 23.45% in the last six months (as of January 16, 2017) and currently trading at a high P/E. The stock corrected over 5.8% in the last four weeks and we believe the pressure to continue. We give an “Expensive” recommendation at the current price of - $ 10.10 

Funds under management (Source: Company Reports) 

Abacus Property Group

ABP Details
· Set to pay interim distribution: Abacus Property Group (ASX: ABP) stock fell over 4% on January 17, 2017 as it traded ex-dividend. The group will pay interim distribution of 8.75 cents (unfranked) per stapled security for the six-month period ending 31 December 2016 in February 2017. ABP enhanced their FY17 forecast distribution to 17.5 cents per security, which is a rise by 2.9% on the distribution of FY16 year. ABP is aiming for an annual distribution growth of between 2%-3%. The group is expecting a circa $125 million of capital realizations from residential projects in FY17. Moreover, ABP continued to maintain a conservative balance sheet with gearing at 25.8%. The group has an interest cover ratio of 4.2x while the group intends to maintain solid liquidity position for opportunities. ABP also has Third Party Capital partnerships to more effectively pursue the opportunities.

· Recommendation: ABP stock corrected over 5.1% in the last six months (as of January 16, 2017) due to concerns in the property industry. We give an “Expensive” recommendation on the stock at the current price of - $ 2.86

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