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Extraction Summary
1
People
4
Organizations
0
Locations
5
Events
3
Relationships
3
Quotes
Document Information
Type:
Financial research report / conference summary
File Size:
Summary
This document is a page from a Bank of America Merrill Lynch financial research report dated November 17, 2016, summarizing presentations from its 'Future of Financials Conference'. The report analyzes investor sentiment towards Goldman Sachs (GS) stock and details the company's new 'Marcus' consumer lending venture. It also provides key takeaways from a presentation by Loren Starr, CFO of Invesco (IVZ), regarding its growth outlook. The document contains no information related to Jeffrey Epstein.
People (1)
| Name | Role | Context |
|---|---|---|
| Loren Starr | CFO |
CFO of Invesco (IVZ) who presented at the 2016 Future of Financials Conference, expressing optimism about the outlook...
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Organizations (4)
| Name | Type | Context |
|---|---|---|
| Bank of America Merrill Lynch |
Author of the research report and host of the conference.
|
|
| Goldman Sachs (GS) |
Subject of analysis, particularly its new consumer lending venture, 'Marcus'.
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| Invesco (IVZ) |
Subject of analysis in the 'Asset Managers Top 5 Takeaways' section.
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| Department of Labor (DOL) |
Mentioned in relation to its potential impact on Invesco (IVZ) following the election.
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Timeline (5 events)
17 November 2016
Bank of America Merrill Lynch's '2016 Future of Financials Conference' took place.
Goldman Sachs management
Loren Starr
circa June 2016
Reference to 'Brexit' and its impact on market activity, which was described as 'slow before and very active post'.
circa November 2016
Presentation by Goldman Sachs management on their new consumer lending effort, 'Marcus'.
2016 Future of Financials Conference
Goldman Sachs management
circa November 2016
Presentation by Loren Starr, CFO of Invesco (IVZ), on the company's outlook.
2016 Future of Financials Conference
circa November 2016
Reference to 'the election' (implied 2016 US Presidential Election) and its impact on market activity and regulation.
Relationships (3)
The document identifies Loren Starr as the CFO of Invesco (IVZ).
Bank of America Merrill Lynch authored the research report analyzing Goldman Sachs.
Bank of America Merrill Lynch authored the research report analyzing Invesco.
Key Quotes (3)
"What would get you more interested in investing in GS stock? A stronger revenue backdrop (51%), Normalizing regulations and ability to return more capital (34%), Investing to drive improving returns (10%), Additional expense reductions (5%)."Source
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Quote #1
"While they said it is too early to tell the impact, a lower corporate tax rate would benefit GS some, a pro-growth policy could positively impact confidence/activity levels, and some de-regulation could ease some of the operational challenges, though much of the regulation was well intended and has created a stronger industry."Source
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Quote #2
"...the majority of respondents said that a consistent above average organic growth rate would get them most excited (48%), followed by a more favorable market backdrop (38%), less regulation (10%), and more operating leverage (5%)..."Source
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Quote #3
Full Extracted Text
Complete text extracted from the document (2,586 characters)
Chart 55: What would get you more interested in investing in GS stock?
60%
50%
51%
40%
34%
30%
20%
10%
10%
5%
0%
A stronger revenue backdrop
Normalizing regulations and ability to return more capital
Investing to drive improving returns
Additional expense reductions
Source: BofA Merrill Lynch Global Research
60%
50%
51%
40%
34%
30%
20%
10%
10%
5%
0%
A stronger revenue backdrop
Normalizing regulations and ability to return more capital
Investing to drive improving returns
Additional expense reductions
Source: BofA Merrill Lynch Global Research
Management focused the presentation on Marcus, Goldman's new consumer lending effort. This venture has significant potential with an unsecured consumer loan target market of $850B and Goldman coming to the market with a unique skillset of technology and risk management, no channel conflicts or bricks and mortar, a strong balance sheet that can provide loans at a meaningful discount to peers, and a long history in the financial markets with a strong brand. When fully ramped up, this unit could produce pre-tax ROA's of 3-4%, and assuming 9-11% equity commitments, this could translate into a high teens ROE.
Given the positive sector/GS stock reaction post the election, management was asked on what they thought about the future of current regulation and activity levels. While they said it is too early to tell the impact, a lower corporate tax rate would benefit GS some, a pro-growth policy could positively impact confidence/activity levels, and some de-regulation could ease some of the operational challenges, though much of the regulation was well intended and has created a stronger industry.
In terms of the current environment, GS didn't give an exact update, but said activity has been healthy and around the election activity was similar to around Brexit (slow before and very active post). Most other firms also mentioned positive trends in 4Q, with normal seasonality, but up materially year over year.
Asset Managers Top 5 Takeaways
Invesco (IVZ), C-1-7, Buy
Invesco (IVZ), C-1-7, Buy
Presenting from IVZ was Loren Starr, CFO. Overall Loren was optimistic on the outlook for IVZ to generate above average organic growth given its product mix and performance, deliver cost savings, and accelerate buybacks, and does not expect a significant change in the DOL impact from the election.
When asked what would get investors more excited about investing in IVZ stock, the majority of respondents said that a consistent above average organic growth rate would get them most excited (48%), followed by a more favorable market backdrop (38%), less regulation (10%), and more operating leverage (5%), while nobody said longer term FX hedged would get them more interested.
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2016 Future of Financials Conference | 17 November 2016
Bank of America Merrill Lynch
HOUSE_OVERSIGHT_014350
2016 Future of Financials Conference | 17 November 2016
Bank of America Merrill Lynch
HOUSE_OVERSIGHT_014350
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