Diverse Income Trust plc (LON:DIVI) Fund Manager Gervais Williams was asked his view on portfolio company TP ICAP Group plc in a recent wide ranging interview.
DirectorsTalk said: TP ICAP Group plc (LON:TCAP) is another large FTSE250 financial stock, it has operations in 27 countries, group revenue of almost £1.6 billion in the first 9 months of 2022 and it was up 10% year on year. All asset classes in its global broking division delivered high single to double-digit growth in the 3rd quarter. What are your thoughts on the company?
Gervais Williams commented:
“Yes, TP ICAP is very interesting – it’s another company that’s a financial business which is a beneficiary of bond markets yields rising. It’s had a tough time in the last few years, specifically it’s made an acquisition of Liquidnet which allows some of its customers to find liquidity at a time when it’s more difficult.
I think that’s a really major advantage, I think market liquidity is going to be really difficult for many companies, this is strictly on the bond side we’re talking here. The fact that they actually have a potential solution which will hopefully not just improve but make a significant difference to liquidity and clearing of people who need to sell, I think is a really big advantage. They’re expecting all of that investment to start maturing in the next year or so, and if it does, it’s good – if it does well, it’s even better.
So, the risk reward ratio, again like Just Group plc, we think is pretty attractive.”
TP ICAP Group plc is a leading market infrastructure and information provider. It is listed on the London Stock Exchange in the FTSE 250.
TP ICAP operates at the heart of wholesale OTC and exchange-traded markets. It is active across all major financial, energy and commodities asset classes, where its brokers match buyers and sellers to improve price discovery, trade execution and liquidity flow. It is also a world-leading provider of OTC market data – including live and historical pricing content – and advanced valuation and analytics.