Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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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6 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 6 undervalued stocks in the Investment Management & Fund Operators industry for Tuesday, October 17, 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.

Bank of New York Mellon Corp’s Value Grade

Value Grade:

The Bank of New York Mellon Corporation is a global company. The Company?s businesses are divided into three business segments: Securities Services, Market and Wealth Services and Investment and Wealth Management. The Company also includes Other segment, which includes the leasing portfolio, corporate treasury activities, including its securities portfolio, derivatives and other trading activities, corporate and bank-owned life insurance, renewable energy and other corporate investments. The Company?s two principal United States banking subsidiaries include The Bank of New York Mellon, a New York state-chartered bank, which houses its Securities Services businesses, including asset servicing and issuer services and certain market and Wealth Services businesses, including treasury services and clearance and collateral management, as well as the bank-advised business of investment management and BNY Mellon, National Association, which houses its wealth management business.

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.

Bank of New York Mellon Corp has a Value Score of 80, which is considered to be undervalued.

When you look at Bank of New York Mellon Corp’s price-to-sales ratio at 2.30 compared to the industry median at 3.44, this company has a lower price relative to revenue compared to its peers. This could make Bank of New York Mellon Corp’s stock more attractive for value investors.

Bank of New York Mellon Corp’s price-earnings ratio is 12.17 compared to the industry median at 12.28. This means it has a lower share price relative to earnings compared to its peers. This could make Bank of New York Mellon Corp more attractive for value investors.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Bank of New York Mellon Corp’s shareholder yield is higher than its industry median ratio of 4.57%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

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. Bank of New York Mellon Corp’s price-to-book ratio is lower than its industry median ratio of 0.97. This could make Bank of New York Mellon Corp more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Bank of New York Mellon Corp’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Bank of New York Mellon Corp’s price-to-free-cash-flow ratio is lower than its industry median ratio of 10.73. This could make Bank of New York Mellon Corp more attractive because the lower P/FCF ratio indicates that Bank of New York Mellon Corp is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Bexil Corp’s Value Grade

Value Grade:

Bexil Corporation is a holding company. The Company, through its subsidiary, Bexil Advisers LLC, is primarily engaged in investment management. The Company’s subsidiaries include Bexil Securities LLC and Bexil American Mortgage Inc. Bexil Advisers LLC is an investment adviser and investment manager of Dividend and Income Fund (DNIF), a closed end fund. Bexil American Mortgage Inc. is engaged in developing and monetizing its intellectual property, including domain names and registered service marks.

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.

Bexil Corp has a Value Score of 62, which is considered to be undervalued.

Bexil Corp’s price-earnings ratio is 14.6 compared to the industry median at 12.3. This means that it has a higher price relative to its earnings compared to its peers. This makes Bexil Corp less attractive for value investors.

Bexil Corp’s price-to-book ratio is higher than its peers. This could make Bexil Corp less attractive for value investors when compared to the industry median at 0.97.

You can read more about Bexil Corp’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.

Blackstone Secured Lending Fund’s Value Grade

Value Grade:

Blackstone Secured Lending Fund is a non-diversified, closed-end management investment company. The Company's investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation. It invests approximately 80% of its total assets in secured debt investments. The Company is focused on achieving its investment objectives primarily through originated loans and other securities, including syndicated loans, of private United States companies, typically in the form of first lien senior secured and unitranche loans (including first out/last out loans), and to a lesser extent, second lien, third lien, unsecured and subordinated loans and other debt and equity securities. The Company invests across various sectors, which includes Aerospace and Defense, Air Freight and Logistics, Building Products, Commercial Services and Supplies, and Health Care Providers and Services, among others. Blackstone Credit BDC Advisors LLC is the advisor of the Company.

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.

Blackstone Secured Lending Fund has a Value Score of 69, which is considered to be undervalued.

Blackstone Secured Lending Fund’s price-earnings ratio is 8.8 compared to the industry median at 12.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Blackstone Secured Lending Fund more attractive for value investors.

Blackstone Secured Lending Fund’s price-to-book ratio is lower than its peers. This could make Blackstone Secured Lending Fund fairly attractive for value investors when compared to the industry median at 0.97.

You can read more about Blackstone Secured Lending Fund’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.

Hywin Holdings Ltd - ADR’s Value Grade

Value Grade:

Hywin Holdings Ltd is a China-based company mainly engaged in the provision of third-party wealth management service. The Company primarily provide wealth management services, insurance brokerage services, asset management services and other services. Its wealth management solution platform serves its clients across lifecycles and both onshore and offshore. Its privately raised products consist of real estate products, and private equity and venture capital funds products.

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.

Hywin Holdings Ltd - ADR has a Value Score of 62, which is considered to be undervalued.

Hywin Holdings Ltd - ADR’s price-earnings ratio is 11.3 compared to the industry median at 12.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Hywin Holdings Ltd - ADR more attractive for value investors.

Hywin Holdings Ltd - ADR’s price-to-book ratio is lower than its peers. This could make Hywin Holdings Ltd - ADR more attractive for value investors when compared to the industry median at 0.97.

You can read more about Hywin Holdings Ltd - ADR’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.

Mentor Capital Inc’s Value Grade

Value Grade:

Mentor Capital, Inc. is an operating, acquisition, and investment business. The Company has investments in the medical marijuana, cannabis, energy, manufacturing, and management services sectors. The Company operates through two segments: Cannabis and Medical Marijuana Segment and Facilities Operations Related. The Cannabis and Medical Marijuana segment includes the operation of subsidiaries in the cannabis and medical marijuana sectors. The Company has a legacy investment in Waste Consolidators, Inc. (WCI), which works with business park owners, governmental centers, and apartment complexes to reduce their facility-related operating costs. WCI?s waste management and disposal services include waste consolidation, bulk item pickup, general property maintenance, and one-time clean-up services. The Company's subsidiaries include WCI, Mentor IP, LLC, Mentor Partner I, LLC, Mentor Partner II, LLC, and TWG, LLC.

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.

Mentor Capital Inc has a Value Score of 85, which is considered to be undervalued.

Mentor Capital Inc’s price-to-book ratio is lower than its peers. This could make Mentor Capital Inc fairly attractive for value investors when compared to the industry median at 0.97.

You can read more about Mentor Capital 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.

Principal Financial Group Inc’s Value Grade

Value Grade:

Principal Financial Group, Inc. is a global financial company. The Company offers businesses, individuals and institutional clients a range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. The Company's segments include retirement and income solutions, principal asset management and benefits and protection. The Retirement and Income Solutions segment offers workplace savings and retirement solutions, banking, trust and custodial services, individual variable annuities, and pension risk transfer, among others. The Principal Asset Management segment provides global investment solutions to institutional, retirement, retail and high net worth investors. The Benefits and Protection segment is organized into Specialty Benefits, which provides group dental, group life insurance, group disability insurance, supplemental health products, and individual disability insurance, and life insurance.

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.

Principal Financial Group Inc has a Value Score of 75, which is considered to be undervalued.

Principal Financial Group Inc’s price-earnings ratio is 11.0 compared to the industry median at 12.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Principal Financial Group Inc more attractive for value investors.

Principal Financial Group Inc’s price-to-book ratio is lower than its peers. This could make Principal Financial Group Inc more attractive for value investors when compared to the industry median at 0.97.

You can read more about Principal Financial 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.

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 6 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.

• Bank of New York Mellon Corp stock has a Value Grade of B.
• Bexil Corp stock has a Value Grade of B.
• Blackstone Secured Lending Fund stock has a Value Grade of B.
• Hywin Holdings Ltd - ADR stock has a Value Grade of B.
• Mentor Capital Inc stock has a Value Grade of A.
• Principal Financial Group Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Investment Management & Fund Operators Stocks for Tuesday, October 17
• 6 Undervalued Investment Management & Fund Operators Stocks for Monday, October 16
• Why AlTi Global, Inc’s (ALTI) Stock Is Down 6.22%
• 5 Undervalued Investment Management & Fund Operators Stocks for Friday, October 13

AAII Disclaimer

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