Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Investment Management & Fund Operators industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Latest Investment Management & Fund Operators Stock News

Before choosing which top Investment Management & Fund Operators stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

There is a neutral fundamental outlook for the investment management and fund operators’ sub-industry. The long-term outlook is relatively healthy due to aging populations. Demographic trends are also favorable, as millennials come of age and baby boomers play “catch-up” with contributions to IRAs, driving a significant increase in retirement investments, in our view. Millennials are also maturing and beginning to save for retirement. Many companies will also benefit from legislation enacted designed to encourage saving for retirement. However, the shift from actively managed funds to ETFs and pressures on fee revenues could slightly offset this. Recent market volatility has also impacted equity funds. Firms could benefit from rising interest rates. Growth in assets under management (AUM) is a key driver for many firms in this industry. 2022 projections anticipate high-single-digit AUM growth, though near-term market volatility amid shifting sector allocations will likely keep AUM levels under pressure. At year end 2021, assets in all worldwide open-end funds totaled $71.1 trillion, up 13% from $63 trillion at year end 2020. Equity assets (which rose 19 % in 2021, to $33.6 trillion) equaled 47% of total fund assets. Bond funds (which rose 4.6% in 2021, to $13.7 trillion) accounted for 19% of total fund assets. Money market accounts (which increased by 6.0%, to $8.8 trillion) represented 12% of total assets, and other funds (including real estate and balanced funds, equaled $15.6 trillion, or 22% of total fund assets at year-end 2021. A rebound in asset values amid an economic recovery propelled the S&P Asset Management & Custody Banks Index up by 31.9% during 2021, versus a 26.7% rise in the S&P 1500 Index. Year to date through March 18, 2022, the sub-industry index declined by 13.5%, while the S&P 1500 Index declined by 6.2%.

Why Focus on Undervalued Investment Management & Fund Operators Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Investment Management & Fund Operators Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Investment Management & Fund Operators industry for Monday, May 15, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Investment Management & Fund Operators industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

BROOKFIELD ASSET MANAGEMENT LTD’s Value Grade

Value Grade:

Brookfield Asset Management Ltd. is primarily engaged in providing alternative asset management services. The Company provides its services through an ownership interest in an alternative asset management business, which is carried on by Brookfield Asset Management Inc. (Brookfield) and its subsidiaries. Its products have three categories, which include long-term private funds, perpetual strategies and liquid strategies. The Company's wholly owned subsidiaries include 2451634 Alberta Inc. and Brookfield UK Employee Co Limited. Brookfield is a global alternative asset manager with assets under management across real estate, infrastructure, renewable power and transition, private equity and credit. Brookfield offers a range of alternative investment products to investors around the world, including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

BROOKFIELD ASSET MANAGEMENT LTD has a Value Score of 65, which is considered to be undervalued.

When you look at BROOKFIELD ASSET MANAGEMENT LTD’s price-to-sales ratio at 3.84 compared to the industry median at 3.72, this company has a higher price relative to revenue compared to its peers. This could make BROOKFIELD ASSET MANAGEMENT LTD’s stock less attractive for value investors.

BROOKFIELD ASSET MANAGEMENT LTD’s price-earnings ratio is 6.79 compared to the industry median at 12.70. This means it has a lower share price relative to earnings compared to its peers. This could make BROOKFIELD ASSET MANAGEMENT LTD more attractive for value investors.

Now, let’s assess BROOKFIELD ASSET MANAGEMENT LTD’s EV/EBITDA ratio, also known as enterprise multiple. At 4.2, when compared to the industry median of 15.5, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. BROOKFIELD ASSET MANAGEMENT LTD’s price-to-book ratio is higher than its industry median ratio of 1.04. This could make BROOKFIELD ASSET MANAGEMENT LTD less attractive to investors looking for a new addition to their portfolio.

Bain Capital Specialty Finance Inc’s Value Grade

Value Grade:

Bain Capital Specialty Finance, Inc. is an externally managed specialty finance company focused on lending to middle market companies. The Company is focused on generating income and to a lesser extent, capital appreciation through direct originations of secured debt, including first lien, first lien/last-out, unitranche and second lien debt, investments in strategic joint ventures, equity investments and, to a lesser extent, corporate bonds. Its primary focus is capitalizing on opportunities within Bain Capital Credit's Senior Direct Lending Strategy. It is focused on providing risk-adjusted returns and income to its stockholders by investing primarily in middle-market companies with between 10 million dollars and 150 million dollars in earnings before interest, taxes, depreciation and amortization (EBITDA). The Company may also invest in mezzanine debt and other junior securities and in secondary purchases of assets or portfolios. It is externally managed by BCSF Advisors, LP.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Bain Capital Specialty Finance Inc has a Value Score of 64, which is considered to be undervalued.

Bain Capital Specialty Finance Inc’s price-earnings ratio is 7.5 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Bain Capital Specialty Finance Inc more attractive for value investors.

Bain Capital Specialty Finance Inc’s price-to-book ratio is higher than its peers. This could make Bain Capital Specialty Finance Inc less attractive for value investors when compared to the industry median at 1.04.

You can read more about Bain Capital Specialty Finance Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Invesco Ltd.’s Value Grade

Value Grade:

Invesco Ltd. (Invesco) is an independent investment management firm. Invesco serves the retail and institutional markets within the investment management industry in the Americas, Europe, Middle East and Africa (EMEA) and Asia-Pacific in approximately 110 countries. The Company offers a range of investment strategies across asset classes, investment styles, and geographies. The Company's asset classes include equity, fixed income, balanced, alternatives and money market. The Company's retail assets under management include mutual funds, exchange-traded funds (ETFs), separately managed accounts (SMAs), individual savings accounts, investment companies with variable capital (ICVC), investment trusts, open-end mutual funds, unit investment trusts (UIT), and variable insurance funds. Invesco's client base includes public and private entities, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions and sovereign wealth funds.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Invesco Ltd. has a Value Score of 69, which is considered to be undervalued.

Invesco Ltd.’s price-earnings ratio is 11.1 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Invesco Ltd. more attractive for value investors.

Invesco Ltd.’s price-to-book ratio is higher than its peers. This could make Invesco Ltd. less attractive for value investors when compared to the industry median at 1.04.

You can read more about Invesco Ltd.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Janus Henderson Group PLC’s Value Grade

Value Grade:

Janus Henderson Group PLC is an independent global asset manager. The Company specializes in active investment across all asset classes. It operates through the investment management business segment. The Company manages a range of actively managed investment products for institutional and retail investors across five capabilities: Equities, Fixed Income, Multi-Asset, Quantitative Equities and Alternatives. It operates across various product lines, distribution channels and geographic regions. The Company conducts its operations in North America, the United Kingdom (UK), continental Europe, Latin America, Japan, Asia and Australia.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Janus Henderson Group PLC has a Value Score of 72, which is considered to be undervalued.

Janus Henderson Group PLC’s price-earnings ratio is 12.2 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Janus Henderson Group PLC more attractive for value investors.

Janus Henderson Group PLC’s price-to-book ratio is lower than its peers. This could make Janus Henderson Group PLC fairly attractive for value investors when compared to the industry median at 1.04.

You can read more about Janus Henderson Group PLC’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Jackson Financial Inc’s Value Grade

Value Grade:

Jackson Financial Inc. is a financial services company that helps to clarify the complexity of retirement planning for financial professionals and clients in the United States. The Company?s segments include Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The Retail Annuities segment offers a range of retirement income and savings products, consisting primarily of variable annuities, fixed index annuities, fixed annuities, payout annuities, and registered index-linked annuities. The Institutional Products segment consists of traditional guaranteed investment contracts, funding agreements and medium-term note funding agreements. The Closed Life and Annuity Blocks segment includes various protection products, such as whole life, universal life, variable universal life, term life insurance products, fixed index, and payout annuities. The Company?s products include Jackson Market Link Pro and Jackson Market Link Pro Advisory.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Jackson Financial Inc has a Value Score of 100, which is considered to be undervalued.

Jackson Financial Inc’s price-earnings ratio is 0.5 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Jackson Financial Inc more attractive for value investors.

Jackson Financial Inc’s price-to-book ratio is higher than its peers. This could make Jackson Financial Inc less attractive for value investors when compared to the industry median at 1.04.

You can read more about Jackson Financial Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Silvercrest Asset Management Group Inc’s Value Grade

Value Grade:

Silvercrest Asset Management Group Inc. is a full-service wealth management company. The Company operates through the investment management industry segment. The Company is focused on providing financial advisory and related family office services to high-net-worth individuals and institutional investors. The Company offers a suite of complementary and customized family office services for families seeking oversight of their financial affairs. The Company provides a range of administrative services to the management of certain of its Company?s funds of funds and other investment funds collectively, the Silvercrest Funds. It also provides a range of family office services to some of its clients, including philanthropic, estate and wealth planning services, tax planning and preparation, financial statement, bill paying and record keeping services, bank loan arrangement and payment services, and property and casualty insurance review.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Silvercrest Asset Management Group Inc has a Value Score of 73, which is considered to be undervalued.

Silvercrest Asset Management Group Inc’s price-earnings ratio is 9.5 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Silvercrest Asset Management Group Inc more attractive for value investors.

Silvercrest Asset Management Group Inc’s price-to-book ratio is lower than its peers. This could make Silvercrest Asset Management Group Inc more attractive for value investors when compared to the industry median at 1.04.

You can read more about Silvercrest Asset Management Group Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

UBS Group AG’s Value Grade

Value Grade:

UBS Group AG is a Switzerland-based holding company and conducts its operations through UBS AG and its subsidiaries. The company operates as a wealth manager with focused asset management and investment banking capabilities and a capital-light and cash-generative business model. The Company comprises four business divisions: Global Wealth Management, which provides tailored advice and solutions to its clients around the globe; Personal & Corporate Banking division provides comprehensive financial products and services to private, corporate and institutional clients in Switzerland; Asset Management division offers investment capabilities and styles across all traditional and alternative asset classes, as well as advisory support to institutions; Investment Bank provides investment advice, financial solutions and capital markets access to institutional, corporate and wealth management clients.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

UBS Group AG has a Value Score of 78, which is considered to be undervalued.

UBS Group AG’s price-earnings ratio is 9.8 compared to the industry median at 12.7. This means that it has a lower price relative to its earnings compared to its peers. This makes UBS Group AG more attractive for value investors.

UBS Group AG’s price-to-book ratio is lower than its peers. This could make UBS Group AG fairly attractive for value investors when compared to the industry median at 1.04.

You can read more about UBS Group AG’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Investment Management & Fund Operators Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Investment Management & Fund Operators stocks as well as other industrys.

Choosing Which of the 7 Best Investment Management & Fund Operators Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• BROOKFIELD ASSET MANAGEMENT LTD stock has a Value Grade of B.
• Bain Capital Specialty Finance Inc stock has a Value Grade of B.
• Invesco Ltd. stock has a Value Grade of B.
• Janus Henderson Group PLC stock has a Value Grade of B.
• Jackson Financial Inc stock has a Value Grade of A.
• Silvercrest Asset Management Group Inc stock has a Value Grade of B.
• UBS Group AG stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Investment Management & Fund Operators industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Investment Management & Fund Operators Stocks

Want to learn more about Investment Management & Fund Operators stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Investment Management & Fund Operators Stocks for Monday, May 15
• Which Is a Better Investment, Carlyle Group Inc or Victory Capital Holdings Inc Stock?
• 6 Undervalued Investment Management & Fund Operators Stocks for Friday, May 12
• Why Bridge Investment Group Holdings Inc’s (BRDG) Stock Is Down 5.50%

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