Zacks Industry Outlook BlackRock, Ameriprise, and Invesco

For Immediate Release

Chicago, IL – August 6, 2026 – Today, Zacks Equity BlackRock BLK, Ameriprise Financial AMP and Invesco IVZ

Industry: Investment Management

Link: https://www.zacks.com/commentary/2968477/3-investment-management-stocks-to-buy-from-a-flourishing-industry

The Zacks Investment Management industry is well-positioned for growth, supported by structural shifts in investor preferences, rapid technological advancements and expanding opportunities in alternative investments. Rising adoption of low-cost investment products, resilient retirement savings, AI-driven operational transformation, and increasing demand for private markets and digital assets are expected to drive higher assets under management (AUM), improve profitability and strengthen long-term growth prospects.

Against this backdrop, leading asset managers such as BlackRock, Ameriprise Financial and Invesco are well-placed to capitalize on these favorable industry trends through stronger client inflows, expanding fee-based revenues and enhanced operating efficiency.

About the Industry

The Zacks Investment Management industry comprises companies that manage securities and funds for clients to meet specified investment goals. The companies earn by charging service fees or commissions. Investment managers, also called asset managers, manage hedge funds, mutual funds, private equity, venture capital and other financial investments for third parties. 

By appointing an investment manager for one’s assets, investors get more diversification options than if they manage their assets independently. Investment managers invest their clients’ assets in different asset classes, depending on their needs and risk-taking abilities. Hence, the diversification, which investors get by appointing asset managers to manage their assets helps reduce the impacts of volatility and ensures steady returns over time.

3 Themes Influencing the Investment Management Industry

Net Inflows Supported by ETFs & Retirement Assets to Drive AUM Growth: The ongoing migration from traditional mutual funds to exchange-traded funds (ETFs) continues to reshape the asset management industry, as investors increasingly favor these products for their lower costs, tax efficiency, liquidity and broader range of investment strategies, particularly actively managed ETFs.

Retirement savings represent another resilient driver of industry growth. Unlike market-sensitive investment flows, vehicles like individual retirement accounts (IRAs) and 401(k) plans receive recurring employee and employer contributions, providing investment managers with a consistent stream of long-term capital across market cycles. The continued expansion of managed advisory accounts and wealth management services further strengthens this recurring flow of assets into professionally managed investment products.

These structural inflows are expected to provide a solid foundation for AUM growth, while favorable market performance can offer an additional tailwind through asset appreciation. As client portfolios expand through both new investments and higher market valuations, asset managers stand to benefit from rising fee-based revenues, given that management fees are largely calculated as a percentage of AUM. Consequently, sustained ETF adoption, steady retirement contributions and continued growth in advisory assets are likely to support higher AUM over the near to medium term.

AI-Led Digital Transformation to Enhance Efficiency: Asset managers are increasingly integrating AI and machine learning into investment research, portfolio construction, risk management, and compliance functions to process vast amounts of structured and unstructured data in real time. These technologies enable faster investment decisions, improve risk identification and uncover investment opportunities that traditional analytical methods may overlook, helping firms deliver stronger investment outcomes and remain competitive in an increasingly data-driven market.

Beyond investment management, AI is streamlining middle- and back-office operations by automating repetitive and time-intensive tasks, reducing manual intervention, improving operational accuracy and lowering administrative costs. As operating expenses decline, investment managers are expected to benefit from improved operating leverage and stronger profitability, even amid fee compression across traditional asset management products.

Generative AI is also reshaping client engagement and wealth management. Firms are embedding AI-powered assistants and personalized advisory tools into digital platforms to provide customized investment insights, portfolio recommendations and faster client service. These capabilities will enhance the overall investor experience, strengthen client retention and support new asset gathering by enabling advisors to serve a larger client base more efficiently.

Growing Demand for Alternatives to Support Growth: Rising investor demand for alternative investments is expected to remain a key growth driver for the industry. As investors seek greater diversification, higher risk-adjusted returns and stable income streams, allocations to private credit, private equity, infrastructure, real estate and hedge funds continue to increase. This trend presents a significant opportunity for asset managers to expand AUM and diversify revenue sources, as alternative products typically command higher management and performance fees than traditional investment products.

An emerging opportunity lies in digital assets and tokenized investment products as well. Improving regulatory clarity and rising investor acceptance are encouraging asset managers to expand their digital asset offerings, while tokenized funds are gaining traction for their ability to enhance liquidity, improve operational efficiency and broaden investor access through fractional ownership. As investment managers continue to strengthen their alternatives and digital capabilities, they are likely to attract higher client inflows, grow fee-generating AUM and enhance long-term profitability.

Zacks Industry Rank Indicates Bright Prospects

The Zacks Investment Management industry is a 36-stock group within the broader Zacks Finance sector. The industry currently carries a Zacks Industry Rank #58, which places it at the top 24% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates outperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

The industry’s positioning in the top 50% of the Zacks-ranked industries is because of an improving earnings outlook for the constituent companies in aggregate. The aggregate earnings estimate revisions show that analysts are gradually gaining confidence in this group’s growth potential. Since May 2026-end, the industry’s most recent earnings estimates for the current year have been revised marginally higher.

Thus, we present a few stocks from the industry that you may want to invest in for long-term gains. But before that, let us check out the industry’s recent stock market performance and valuation picture.

Industry vs. Broader Sector

In the past two years, the Zacks Investment Management industry has underperformed the S&P 500 Index and its sector. Stocks in the industry have collectively gained 12%, while the S&P 500 composite has rallied 50.9% and the Zacks Finance Sector has appreciated 42.2%.

Industry's Current Valuation

One might get a good sense of the industry’s relative valuation by looking at its price-to-tangible book ratio (P/TB), which is commonly used for valuing investment management companies because of large variations in their earnings from one quarter to the next.

The industry currently has a trailing 12-month P/TB of 3.98X. This compares with the highest level of 7.45X, the lowest level of 2.75X and the median of 4.48 over the past five years. The industry is trading at a significant discount compared with the market at large, as the trailing 12-month P/TB for the S&P 500 composite is 9.54X.

As finance stocks typically have a low P/TB ratio, comparing investment managers with the S&P 500 may not make sense to many investors. However, the comparison of the group’s P/TB ratio with that of its broader sector seems more meaningful.

When we compare the group’s P/TB ratio with the broader Finance sector, it seems the group is trading at a decent discount. The Zacks Finance sector’s trailing 12-month P/TB of 6.00X for the same period is above the Zacks Investment Management industry’s ratio.

3 Investment Management Stocks to Buy

BlackRock: The New York, NY-based Zacks Rank #1 (Strong Buy) company is the largest asset manager (by assets) in the United States. The company’s broad product diversification, its revenue mix and a steadily improving AUM balance have been aiding the top line. As of June 30, 2026, BlackRock’s total AUM was a record $15.34 trillion.

BLK has been enhancing its competitive position through disciplined acquisitions and strategic partnerships that expand its capabilities across private markets, technology and investment solutions. Acquisitions, including those of Global Infrastructure Partners, HPS Investment Partners, Preqin, ElmTree Funds and SpiderRock, have significantly strengthened the firm’s presence in alternative assets, private credit, infrastructure, data analytics and customized wealth solutions, while complementing its Aladdin technology ecosystem.

Backed by a robust balance sheet and strong cash generation, the company remains well-positioned to pursue additional value-accretive acquisitions, supporting sustainable long-term growth and shareholder value creation.

Over the last five years (2020-2025), the company’s AUM witnessed a compound annual growth rate (CAGR) of 10.1%, supported by market appreciation, client inflows and acquisitions. Over the same period, its revenues (on a GAAP basis) saw a CAGR of 8.4%. The uptrend in revenues and AUM continued in the first half of 2026. Given its efforts to strengthen iShares and ETF operations, along with the company’s increased focus on the active equity business, AUM growth is expected to continue.

In the past six months, shares of BlackRock have gained 7.1%. Over the past seven days, the Zacks Consensus Estimate for the company’s 2026 earnings has been unchanged at $55.63 per share.

Ameriprise: Headquartered in Minneapolis, AMP provides financial planning and related services through its Advice & Wealth Management, Asset Management, and Retirement & Protection Solutions segments. As of June 30, 2026, the company’s total assets under management, administration and advisement were a record $1.81 trillion.

Over the last five years (ending 2025), the company’s net revenues (GAAP basis) saw a CAGR of 9.2% and AUM/AUA witnessed a CAGR of 9%. The uptrend in AUM/AUA and revenues continued in the first half of 2026. AMP is expanding AI capabilities across advisor workflows to enhance productivity, deepen client engagement and deliver more personalized financial advice, reinforcing its competitive edge. These initiatives, coupled with strong advisor recruitment, record adviser productivity, continued AUM/AUA growth and rising adoption of fee-based solutions, are expected to keep supporting consistent revenue expansion.

Ameriprise has consistently optimized its business portfolio to sharpen focus on higher-growth, fee-based businesses and improve long-term profitability. The acquisition of BMO Financial Group’s EMEA asset management business strengthened its global asset management franchise and diversified its geographic footprint, while the divestiture of the Ameriprise Auto & Home business enabled the company to concentrate on its core wealth and asset management operations. At the same time, Ameriprise Bank has become an increasingly important growth engine.

Since Ameriprise’s operations are majorly dependent on the performance of the equity markets and client activities, it benefited significantly during 2020 and the first couple of months of 2021 because of the coronavirus outbreak-induced market volatility. While markets began to normalize in second-quarter 2021, volatility increased again from 2022 due to several geopolitical and macroeconomic concerns. Although volatility is likely to persist for some time in the near term, aiding the company’s top-line growth, any significant change in client activity toward the negative side might hurt Ameriprise’s financials.

In the past six months, AMP shares have gained 2%. Over the past seven days, the Zacks Consensus Estimate for the company’s 2026 earnings has been revised marginally higher to $46.12. The company currently flaunts a Zacks Rank #1.

Invesco: Headquartered in Atlanta, IVZ operates as an independent investment manager and offers a wide range of investment products and services. As of June 30, 2026, it had AUM worth $2.47 trillion. While the company’s total AUM balance declined in 2022, the metric witnessed a CAGR of 10% in the last five years (ending 2025). The uptrend continued in the first half of 2026.

IVZ has been taking steps to constantly accelerate AUM growth. It continues to position QQQ around total cost of ownership, liquidity, scale and an entrenched shareholder base, with no immediate plans for fee reductions. These attributes help Invesco capture more economics from a large global franchise while extending the brand outside the United States. Also, Invesco's product pipeline remains active, with more than 50 new products launched year to date, including active ETFs, while partnerships with Barings and LGT Capital are aimed at expanding private wealth and defined contribution opportunities.

Invesco has been undertaking initiatives to improve operating efficiency. The company completed the sale of its Canadian fund management business in June, and formed a long-term subadvisory partnership. It also shifted its India partnership to a minority stake and subadvisor role, reducing operating expenses while retaining strategic exposure. These actions are occurring alongside the hybrid investment platform rollout, which remains on track for completion by the end of 2026.

Apart from a strong presence in the United States, Invesco maintains a solid foothold across the Asia Pacific and EMEA. As of June 30, 2026, Asia Pacific represented 15% of total AUM and EMEA represented 16%. The company generated net long-term inflows of $21.4 billion in Asia Pacific and $13.7 billion in EMEA in the first six months of 2026. 

The China JV also reached record AUM of $163.2 billion and generated $19.2 billion in total net inflows. The acquisition of Europe-based Source, a leading, independent specialist provider of ETFs, continues to drive the company’s global presence. This geographic diversification gives Invesco multiple sources of demand as clients rebalance portfolios across regions, asset classes and channels.

In the past six months, IVZ shares have gained 19.3%. In the past seven days, the Zacks Consensus Estimate for the company’s 2026 earnings has been revised 1.1% higher to $2.81. Currently, Invesco sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

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