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Boston Partners Value Equity

Boston Partners Value Equity

Focusing on 'characteristics that work': Valuation, fundamentals and business momentum

Key points:

  • Highly flexible unconstrained value equity strategies
  • Strategies ranging across different market capitalizations: all cap, large cap and mid cap 
  • Diversified bottom-up portfolios run by a stable and experienced team of investment professionals

Philosophy

Our investment philosophy is grounded in certain ‘fundamental truths’ that apply to investing: low valuation stocks outperform high valuation stocks, companies with strong fundamentals (high and sustainable returns on invested capital) outperform companies with weak fundamentals, and stocks with positive business momentum (rising earnings estimates) outperform stocks with negative business momentum. We construct well-diversified portfolios that consistently reflect these three characteristics, applying simple rules that aim to limit downside risk, preserve capital and maximize the power of compounding.

Process

Boston Partners portfolios are built from the bottom-up. The process begins with quantitative scoring and screening to cull a target-rich subset universe based on the Three Circle characteristics of valuation, fundamentals and momentum. We cast our net wide, scoring over 10,000 stocks worldwide every week, which enables us to efficiently identify bona fide candidates and provides a road map for our fundamental research. This analysis incorporates the full menu of public filings, industry information and management discussion.

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Regions

The strategy is available in the following investment regions: global and US

Team

A centralized research team of fundamental and quantitative analysts supports the portfolio managers and the firm’s value equity discipline. Portfolio managers are the final decision makers and every investment professional is accountable for the holdings in our portfolios.

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Disclaimer

BY CLICKING ON “I AGREE”, I DECLARE I AM A WHOLESALE CLIENT AS DEFINED IN THE CORPORATIONS ACT 2001.

What is a Wholesale Client?
A person or entity is a “wholesale client” if they satisfy the requirements of section 761G of the Corporations Act.
This commonly includes a person or entity:

  • who holds an Australian Financial Services License
  • who has or controls at least $10 million (and may include funds held by an associate or under a trust that the person manages)
  • that is a body regulated by APRA other than a trustee of:
    (i) a superannuation fund;
    (ii) an approved deposit fund;
    (iii) a pooled superannuation trust; or
    (iv) a public sector superannuation scheme.
    within the meaning of the Superannuation Industry (Supervision) Act 1993
  • that is a body registered under the Financial Corporations Act 1974.
  • that is a trustee of:
    (i) a superannuation fund; or
    (ii) an approved deposit fund; or
    (iii) a pooled superannuation trust; or
    (iv) a public sector superannuation scheme
    within the meaning of the Superannuation Industry (Supervision) Act 1993 and the fund, trust or scheme has net assets of at least $10 million.
  • that is a listed entity or a related body corporate of a listed entity
  • that is an exempt public authority
  • that is a body corporate, or an unincorporated body, that:
    (i) carries on a business of investment in financial products, interests in land or other investments; and
    (ii) for those purposes, invests funds received (directly or indirectly) following an offer or invitation to the public, within the meaning of section 82 of the Corporations Act 2001, the terms of which provided for the funds subscribed to be invested for those purposes.
  • that is a foreign entity which, if established or incorporated in Australia, would be covered by one of the preceding paragraphs.
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