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Quarter-End Insights

Our Outlook for Business & Financial Services Stocks

Asset managers might need to bulk up.

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  • Asset managers are likely to see a more tangible impact this year from the consolidation that has taken place in the broker-dealer channel.
  • Based on relative intermediate fund performance coming into 2010, we believe BlackRock, T. Rowe Price, Waddell & Reed, and Janus are best positioned to drive equity inflows in the near term, but expect the payback from Janus' stronger fund performance to be weaker given the limited reach of its distribution network.
  • Most of the sectors in our coverage are trading close to fair value, but education and insurance brokers look fairly cheap.

Greggory Warren does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.