Chart of the Week

Value Managers Scarcity

April 10, 2023

From stubbornly elevated inflation to persistently high discount levels for value stocks (vs. growth stocks and the broader market), we believe the current investing environment is supportive of an allocation to value management. After a prolonged growth-led cycle, however, finding a true value asset manager might not be as simple as it appears. Morningstar classified global equity large-cap funds with more than $100 million in assets under management (AUM) by exposure to what it considers value securities. It found that only 8% of the category’s AUM was in funds with more than 35% exposure to value securities, while 71% of AUM was in funds with less than 25% exposure to value securities.