Ariel Global Fund on Standard Chartered PLC
Thesis
Ariel sees Standard Chartered as a distinctive link between fast-growing emerging economies and global capital markets. Its network drives cross-border transaction banking, trade finance and markets revenue. Higher-fee wealth-management products and inflows create a less rate-sensitive source of earnings. Efficiency gains, capital strength, dividends and buybacks could help produce both higher return on equity and valuation expansion.
“room for both earnings growth and multiple expansion as execution continues.”
Key risks
- Geopolitical risk across Asia, Africa and the Middle East
- Emerging-market volatility and regulatory risk
- Efficiency initiatives and wealth growth may take longer to deliver