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Market Update

An Uncertain Future for Asset Managers

While asset managers have enjoyed strong returns of late, fees and regulations have put future gains in doubt.

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Countless companies have benefited from the stock market's eight-year bull run, but one sector that has seen especially strong gains is the one that invests in the market: asset managers. Since the market trough in 2009, the Dow Jones U.S. Asset Managers Index has climbed by 261%, compared with 256% for the S&P 500, while BlackRock (BLK), one of the world's largest investment operations, has soared by nearly 340% over that same time period.

These businesses have been good ones to own during the bull market, and it's not hard to see why: They do well when the market rises. The higher stocks climb, the more people invest in the market, and the more those investments grow, leading to more assets under management. Between 2008 and 2015, global AUM climbed by more than 56%, according to Statista.

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