Franklin Resources, Janus Capital and T. Rowe Price all got neutral ratings from UBS Warburg analyst Glenn Schorr, as he began covering the investment management sector, The Wall Street Journal reports. Schorr gave the overall sector a neutral rating, as well.

The analyst’s reason for pessimism in the short term includes heightened competition in a saturated market, the rising power of distributors and little ability to cut expenses, heightened regulatory scrutiny and "alternative products that are more risk than opportunity."

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