Zacks Industry Outlook Highlights BlackRock, Ameriprise Financial and Invesco

Zacks Equity Research's industry outlook on the Investment Management sector, published November 6, 2026, identifies fee compression, rising technology and compliance costs, and private credit concerns as the principal headwinds for asset managers. According to Zacks, the continued shift toward low-cost passive and index-based products is expected to pressure management fees and limit revenue growth despite expanding AUM, with migration from mutual funds to lower-fee ETFs particularly constraining active managers. Growing concern over private credit, including liquidity constraints, valuation uncertainty and potential borrower defaults, could also dampen appetite for higher-fee alternative products and slow private markets fundraising.

Zacks expects elevated spending on AI, automation, cybersecurity and digital infrastructure, along with regulatory requirements around fee transparency, data protection and alternative investments, to keep operating expenses high in the near term. Consolidation through mergers, acquisitions and partnerships is seen as a partial offset, with acquisitions of private markets and infrastructure managers potentially broadening product portfolios, though integration challenges remain.

The industry's Zacks Industry Rank of #193 reflects weak aggregate earnings estimate revisions. The 36-stock group has underperformed the S&P 500 and the broader Zacks Finance sector over two years, though its trailing P/TB multiple remains below its five-year range midpoint.

Zacks highlights three companies as relatively well positioned. BlackRock, rated Zacks Rank #3 (Hold), reported AUM of $15.49 trillion and first-nine-months 2026 revenues of $21.53 billion, up 25.1% year over year. The firm recorded $15 billion in third-quarter private markets net inflows and $68 billion in trailing 12-month private markets fundraising, supported by acquisitions including Global Infrastructure Partners, HPS Investment Partners, Preqin, ElmTree Funds and SpiderRock. Shares have gained 14% over six months, and the Zacks Consensus 2026 earnings estimate stands at $57.82 per share.

Ameriprise Financial, also rated Zacks Rank #3, reported $1.78 trillion in assets under management, administration and advisement and first-nine-months 2026 GAAP net revenues of $14.87 billion, up 10%. Zacks cites strong advisor recruitment, record advisor productivity of $1.2 million, and the transition of 258 Huntington Bank advisors with $28 billion in client assets expected to move through early 2027. Ameriprise's acquisition of BMO Financial Group's EMEA asset management business is also cited. Zacks flags persistent net outflows in the Asset Management segment, which totaled $9.3 billion in the third quarter, as a concern. Shares have gained 11% over six months, and the 2026 consensus EPS estimate was revised higher to $46.29.

The article is a sector commentary from Zacks Equity Research and does not provide a full analysis of Invesco, which is profiled only briefly.