In August 1987, founding partners of Boston Partners Asset Management outlined their thoughts about investing. Now known within Robeco Boston Partners as “The Fundamental Truths,” the key principles that guide our investment approach were laid out as follows:
1. What works is what beats market averages over long time periods
2. Value works
3. Momentum works
4. Fundamental analysis must be grounded in value and momentum thinking
5. Quantitative methods should be the starting point of fundamental analysis
In 2007, Robeco Boston Partners formally “globalized” analyst research coverage of sectors and industries believing that the same time tested approach we use in the US would apply to a broad global universe of stocks.
The basis of this decision was our conviction that irrespective of where a company is headquartered, stock performance is driven by the same set of characteristics: attractive valuations, strong business fundamentals and a positive catalyst for change. The effort also included a complete assessment of international accounting and reporting standard to ensure that our quantitative systems show the same efficacy as they have in the US. This also involved immersing our fundamental analysts in the analysis on global securities and globalizing the sector coverage outside a purely US pool.
The output of that effort is the Robeco Boston Partners Global Premium Equities Portfolio. The objective of the fund is to find the best combination of value and business fundamentals while taking a flexible approach to capitalization parameters and geographical focus, without specific regard to industry sectors, currencies, geographic regions or countries.