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Buy 5 Investment Management Stocks to Enhance Your Portfolio Returns
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Key Takeaways
The investment management industry has witnessed solid growth in the past year.
TROW, AMG, FHI, JHG and HLNE carry strong upside potential for the rest of 2025.
Growing AUM, strategic deals, and global distribution drive revenue and earnings expectations.
The investment management industry, which consists of companies that manage securities and funds for clients to meet specified investment goals, has seen strong growth in the past year. The Zacks-defined Financial – Investment Management Industry is currently in the top 34% of the Zacks Industry Rank. Since it is ranked in the top half of the Zacks Ranked Industries, we expect the investment management industry to outperform the market over the next three to six months.
At this stage, it will be prudent to bet on investment management stocks with a favorable Zacks Rank to enrich your portfolio in the rest of 2025. Five such stocks are: T. Rowe Price Group Inc. (TROW - Free Report) , Affiliated Managers Group Inc. (AMG - Free Report) , Federated Hermes Inc. (FHI - Free Report) , Janus Henderson Group plc (JHG - Free Report) and Hamilton Lane Inc. (HLNE - Free Report) .
Equity markets globally have performed impressively in the past two and a half years, driven by sustained economic growth, resulting in a rise in AUM (asset under management) balances. Growth in AUM balances will positively impact investment managers’ performance fees and investment advisory fees.
With interest rates expected to decline in the near term, investors are likely to rotate out of money market mutual funds or short-term investments into higher-yielding assets. Institutional interest also continues to swell, with pension funds, endowments, and insurers significantly ramping up allocations.
Moreover, as investors reassess their risk levels, there has been a rise in asset inflows into alternative investments, such as index funds, private credit funds and exchange-traded funds (ETFs). The steady growth of tokenized assets — the tokenization of traditional assets, such as real estate and equities — has also been attracting investor interest.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
T. Rowe Price Group Inc.
Zacks Rank #1 T. Rowe Price Group is a leading investment manager providing its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. TROW has been benefiting from growing AUM.
Strategic product enhancements and buyouts have expanded TROW’s investment capabilities and continue to support revenues. Our estimates for net revenues and AUM suggest a CAGR of 2.8% and 5.5%, respectively, by 2027. Also, the robust liquidity position will aid consistent capital distributions.
TROW’s focus on enhancing product offerings, efforts to broaden distribution reach to international markets, and strategic acquisitions will likely aid its top line. This is further supported by a solid asset AUM balance which is diversified across various asset classes, client bases and geographies.
T. Rowe Price Group has an expected revenue and earnings growth rate of 1.2% and 7.1%, respectively, for fourth-quarter 2025. The Zacks Consensus Estimate for fourth-quarter earnings has improved 1.3% over the past 30 days.
Affiliated Managers Group Inc.
Zacks Rank #1 Affiliated Managers Group is a global asset manager with investments in high-quality, independent partner-owned firms or affiliates. AMG has been benefiting from growing AUM.
Diverse product offerings, robust AUM balance and global distribution capability will likely drive AMG’s top line. Moreover, a solid liquidity position is expected to support investments in alternatives, generating solid earnings over time. We project total revenues and total AUM of AMG to witness a CAGR of 2.8% and 10.4%, respectively, by 2027.
Affiliated Managers Group has an expected revenue and earnings growth rate of 2.4% and 15%, respectively, for fourth-quarter 2025. The Zacks Consensus Estimate for fourth-quarter earnings has improved 1.6% over the past 30 days.
Federated Hermes Inc.
Zacks Rank #2 Federated Hermes’ second-quarter 2025 results benefited from its record-high AUM balance. FHI continues to benefit from strategic deals and a focus on acquiring money market assets. With a diverse asset and product mix and inorganic growth efforts, FHI holds significant potential in the long run.
FHI offers world-class active investment management and engagement services across a wide range of asset classes for investors around the world. FHI’s decent liquidity position supports its capital distribution activities.
Federated Hermes has an expected revenue and earnings growth rate of 4.1% and 1%, respectively, for fourth-quarter 2025. The Zacks Consensus Estimate for fourth-quarter earnings has improved 1.9% over the past 60 days.
Janus Henderson Group plc
Zacks Rank #2 Janus Henderson Group is an asset management holding entity. JHG provides services to institutional, retail, and high-net-worth clients. JHG manages separate client-focused equity and fixed-income portfolios. JHG also manages equity, fixed income, and balanced mutual funds for its clients. JHG invests in public equity and fixed-income markets, as well as in real estate and private equity.
Janus Henderson Group has an expected revenue and earnings growth rate of 1.1% and -9.4%, respectively, for fourth-quarter 2025. The Zacks Consensus Estimate for fourth-quarter earnings has improved 6.6% over the past 60 days.
Hamilton Lane Inc.
Zacks Rank #2 Hamilton Lane is a private equity firm specializing in early venture, emerging growth, turnaround, middle market, mature, mid-venture, bridge, buyout, distressed/vulture, loan, and mezzanine in growth capital companies.
HLNE prefers to invest in energy, industrials, consumer discretionary, health care, real estate, information technology, utilities, and consumer services. HLNE prefers to invest in Africa/Middle East, Asia/Pacific, Europe, Latin America and the Caribbean, the United States and Canada.
Hamilton Lane has an expected revenue and earnings growth rate of 9.1% and -1.6%, respectively, for fourth-quarter 2025. The Zacks Consensus Estimate for fourth-quarter earnings has improved 0.1% over the past 90 days.
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Buy 5 Investment Management Stocks to Enhance Your Portfolio Returns
Key Takeaways
The investment management industry, which consists of companies that manage securities and funds for clients to meet specified investment goals, has seen strong growth in the past year. The Zacks-defined Financial – Investment Management Industry is currently in the top 34% of the Zacks Industry Rank. Since it is ranked in the top half of the Zacks Ranked Industries, we expect the investment management industry to outperform the market over the next three to six months.
At this stage, it will be prudent to bet on investment management stocks with a favorable Zacks Rank to enrich your portfolio in the rest of 2025. Five such stocks are: T. Rowe Price Group Inc. (TROW - Free Report) , Affiliated Managers Group Inc. (AMG - Free Report) , Federated Hermes Inc. (FHI - Free Report) , Janus Henderson Group plc (JHG - Free Report) and Hamilton Lane Inc. (HLNE - Free Report) .
Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Positive Catalysts
Equity markets globally have performed impressively in the past two and a half years, driven by sustained economic growth, resulting in a rise in AUM (asset under management) balances. Growth in AUM balances will positively impact investment managers’ performance fees and investment advisory fees.
With interest rates expected to decline in the near term, investors are likely to rotate out of money market mutual funds or short-term investments into higher-yielding assets. Institutional interest also continues to swell, with pension funds, endowments, and insurers significantly ramping up allocations.
Moreover, as investors reassess their risk levels, there has been a rise in asset inflows into alternative investments, such as index funds, private credit funds and exchange-traded funds (ETFs). The steady growth of tokenized assets — the tokenization of traditional assets, such as real estate and equities — has also been attracting investor interest.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
T. Rowe Price Group Inc.
Zacks Rank #1 T. Rowe Price Group is a leading investment manager providing its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. TROW has been benefiting from growing AUM.
Strategic product enhancements and buyouts have expanded TROW’s investment capabilities and continue to support revenues. Our estimates for net revenues and AUM suggest a CAGR of 2.8% and 5.5%, respectively, by 2027. Also, the robust liquidity position will aid consistent capital distributions.
TROW’s focus on enhancing product offerings, efforts to broaden distribution reach to international markets, and strategic acquisitions will likely aid its top line. This is further supported by a solid asset AUM balance which is diversified across various asset classes, client bases and geographies.
T. Rowe Price Group has an expected revenue and earnings growth rate of 1.2% and 7.1%, respectively, for fourth-quarter 2025. The Zacks Consensus Estimate for fourth-quarter earnings has improved 1.3% over the past 30 days.
Affiliated Managers Group Inc.
Zacks Rank #1 Affiliated Managers Group is a global asset manager with investments in high-quality, independent partner-owned firms or affiliates. AMG has been benefiting from growing AUM.
Diverse product offerings, robust AUM balance and global distribution capability will likely drive AMG’s top line. Moreover, a solid liquidity position is expected to support investments in alternatives, generating solid earnings over time. We project total revenues and total AUM of AMG to witness a CAGR of 2.8% and 10.4%, respectively, by 2027.
Affiliated Managers Group has an expected revenue and earnings growth rate of 2.4% and 15%, respectively, for fourth-quarter 2025. The Zacks Consensus Estimate for fourth-quarter earnings has improved 1.6% over the past 30 days.
Federated Hermes Inc.
Zacks Rank #2 Federated Hermes’ second-quarter 2025 results benefited from its record-high AUM balance. FHI continues to benefit from strategic deals and a focus on acquiring money market assets. With a diverse asset and product mix and inorganic growth efforts, FHI holds significant potential in the long run.
FHI offers world-class active investment management and engagement services across a wide range of asset classes for investors around the world. FHI’s decent liquidity position supports its capital distribution activities.
Federated Hermes has an expected revenue and earnings growth rate of 4.1% and 1%, respectively, for fourth-quarter 2025. The Zacks Consensus Estimate for fourth-quarter earnings has improved 1.9% over the past 60 days.
Janus Henderson Group plc
Zacks Rank #2 Janus Henderson Group is an asset management holding entity. JHG provides services to institutional, retail, and high-net-worth clients. JHG manages separate client-focused equity and fixed-income portfolios. JHG also manages equity, fixed income, and balanced mutual funds for its clients. JHG invests in public equity and fixed-income markets, as well as in real estate and private equity.
Janus Henderson Group has an expected revenue and earnings growth rate of 1.1% and -9.4%, respectively, for fourth-quarter 2025. The Zacks Consensus Estimate for fourth-quarter earnings has improved 6.6% over the past 60 days.
Hamilton Lane Inc.
Zacks Rank #2 Hamilton Lane is a private equity firm specializing in early venture, emerging growth, turnaround, middle market, mature, mid-venture, bridge, buyout, distressed/vulture, loan, and mezzanine in growth capital companies.
HLNE prefers to invest in energy, industrials, consumer discretionary, health care, real estate, information technology, utilities, and consumer services. HLNE prefers to invest in Africa/Middle East, Asia/Pacific, Europe, Latin America and the Caribbean, the United States and Canada.
Hamilton Lane has an expected revenue and earnings growth rate of 9.1% and -1.6%, respectively, for fourth-quarter 2025. The Zacks Consensus Estimate for fourth-quarter earnings has improved 0.1% over the past 90 days.