Boston Partners celebrates nearly 30 years of benchmark-beating performance
Boston Partners released a report showing that its lineup of long-only institutional strategies delivered index-besting results net of fees since inception. The strategies have produced average excess returns of 1.74% annually irrespective of market capitalization or geographic focus.
The firm's record of outperformance is all the more impressive given how few active managers consistently beat their benchmarks over time (a number reduced further when accounting for fees). According to data provided by eVestment, only a third of U.S. large-cap equity separate account strategies outperformed their benchmarks over the 15 years through December 31. Fund researcher Morningstar has observed a similar trend among mutual funds. Just 12% of U.S. large value managers beat their benchmarks over the past decade and fewer than 6% did so over the past 15 years through June 30, according to Morningstar.
The team at Boston Partners credits its unwavering approach to finding companies that exhibit a combination of attractive valuation, strong business fundamentals, and business momentum. "The firm was founded in 1995 with a single approach to investing, and we haven't changed because it's worked for our clients over time," says Jay Feeney, Chief Investment Officer and CEO. "I reject the argument that passive investing is a superior approach to active."
The firm's distinctive "three-circles" approach is implemented by a long-tenured team of investment professionals who combine quantitative and fundamental research to seek an analytical edge and then execute with extreme discipline. Says Feeney: "Consistency is key?particularly in today's market where a handful of stocks with unsustainable valuations are driving index returns, and where investors may be taking on more risk than they realize. Our long-term performance record suggests that a steadier approach can help investors pursue their goals with far less volatility."
About Boston Partners
Boston Partners is a value equity manager with a distinctive approach to investing?one that combines attractive valuation characteristics with strong business fundamentals and positive business momentum in every portfolio. The consistent application of this approach over nearly 30 years by an experienced and long-tenured team has created a proven record of performance across economic cycles, market capitalizations, and geographies. Visit boston-partners.com for more information.
Past performance does not guarantee future results. Stocks and bonds can decline due to adverse issuer, market, regulatory, or economic developments; foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability; value stocks may decline in price; growth stocks may be more susceptible to earnings disappointments; the securities of small companies are subject to higher volatility than those of larger, more established companies. This material is not intended to be, nor shall it be interpreted or construed as, a recommendation or providing advice, impartial or otherwise.
Boston Partners Global Investors, Inc. (Boston Partners) is an Investment Adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. Registration does not imply a certain level of skill or training. Boston Partners is an indirect, wholly owned subsidiary of ORIX Corporation of Japan. Boston Partners updated its firm description as of November 2018 to reflect changes in its divisional structure. Boston Partners is comprised of two divisions, Boston Partners and Weiss, Peck & Greer Partners.
Securities offered through Boston Partners Securities, LLC, an affiliate of Boston Partners.
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