Institutional Products

Institutional Products

 

Team Approach

At Boston Advisors, portfolio management decisions and investment strategy are made and formulated in a team setting. The team approach used at Boston Advisors assures a consistent and deliberate portfolio management process, not wholly dependent on any single participant. Each strategy is assigned a lead portfolio manager who, after discussions with the team, will make the final decision on purchases and sales.

Consistent Process

The equity team applies valuation and momentum screens to a universe of over 2,000 companies in order to assess relative price strength patterns and to configure portfolios for risk/return characteristics. A matrix of bottom-up decision criteria are applied uniformly to these companies. Some of these include:

Each screen yields a rank for its particular universe of stocks, broken out into deciles. The top deciles of each screen combine to make a "buy" list (about 200 companies in each of the two tiers). Stocks are chosen for inclusion in the portfolio by their overall rank within the model (based on factors above) as well as their movement within the ranking system.

A sub-group of stocks is monitored on a daily basis and re-scored weekly using current data. Stocks gravitate - generally slowly - across the spectrum from attractive to unattractive as the new data is distilled through our multi-factor process. Sale candidates are those portfolio holdings that have slipped from the ranks of the attractive to either neutral or unattractive. Other factors influencing sale decisions may include changes in relative sector allocation dictated by shifts in our models and a desire to maintain or limit the size of an individual position within the portfolio.

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