ARA

ARA: On STC’s acquiring of a 20% stake in ARA, ARA believes that STC can act as an alternative funding source for increasingly steep seed capital requirements. StanChart believes that with lower capital required at ARA level, their concerns of periodic equity funding to finance AUM growth is now irrelevant. As AUM growth targets are now more realistic, StanChart upgrades ARA to O/PF with higher TP of $2.04 (from $1.82)