Zacks Industry Outlook Highlights Ameriprise, SEI Investments and Federated Hermes

NodeGuardian · 2026-02-27T11:15:18+00:00

The Zacks Investment Management industry faces challenges from rising tech costs and a shift to low-cost products, impacting profitability. However, companies like Ameriprise, SEI, and Federated Hermes show promise with growth strategies and increasing AUM.

NodeGuardian

2026-02-27 11:15:18

Abstract generation in progress

The Zacks Investment Management industry is contending with increasing technology and AI expenses, along with a shift towards low-cost passive products, which pressures profitability and margins. Despite these challenges, firms like Ameriprise Financial, SEI Investments Co., and Federated Hermes, Inc. are well-positioned for growth due to rising assets under management (AUM) and strategic initiatives like product innovation and M&As. The industry currently holds a Zacks Industry Rank #137, indicating near-term underperformance, but Zacks highlights these three companies as potential long-term investments.

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