Global Perspective. Entrepreneurial Vision. Global Perspective. Entrepreneurial Vision.

Transcription

1 Global Perspective. Entrepreneurial Vision. Global Perspective. Entrepreneurial Vision. Firm Overview Third Quarter 2015

2 We are a nimble, active equity boutique with more than 40 years of history, backed by the scale of BNY Mellon. Our time-tested, process-centric philosophy is deeply rooted in our dedication to fundamental research. Our passion for equities drives our pursuit of alpha to meet our clients unique needs.

3 An Overview The Boston Company Asset Management, LLC, is a performance-driven active equity manager. We build portfolios that are rooted in fundamental research, bottom-up stock selection, macro perspectives and risk controls appropriate for our client base. We are dedicated to fostering long-term, solutions-based relationships with our clients and earning their confidence through the consistent delivery of alpha across a wide range of equity offerings. All of our strategies, including long-only and alternatives, are implemented with consistency and discipline, leveraging more than 40 years of history in equity investing. Our investment performance is based on a time-tested approach, coupled with the deep, broad-based experience of our investment professionals. As a subsidiary of The Bank of New York Mellon Corporation, we are able to function with the nimbleness of a small boutique, empowered by the global scale and resources of our parent organization. Many of our investment strategies are also available through Dreyfus ( com - retail investors) and BNY Mellon Wealth Management ( com - high-net-worth investors). Non-U.S. investors may also access our solutions via regional Investment Management offices; please visit the BNY Mellon Investment Management site ( for more information. We have always been defined by our equity expertise and dedicated client service those are the foundation on which The Boston Company was built. Bart Grenier - Chairman, CEO & CIO By The Numbers $39.5 B Assets Under Management $2.7 B Assets Under Advisement Established Investment Professionals As of September 30, Where applicable, includes assets managed by investment personnel of The Boston Company Asset Management, LLC acting in their capacity as officers of affiliated entities. Assets Under Advisement include assets for which investment personnel of The Boston Company Asset Management, LLC provide nondiscretionary advice.

4 Equity Investing Our Philosophy The Boston Company s mission is to be the preferred choice among active global equity investors who demand superior investment returns and client service across a broad range of U.S. and non-u.s. investment strategies. We maintain a longstanding commitment to sound stock selection through a robust fundamental research platform. This serves as the foundation of our distinguished reputation, which is further enhanced by strong quantitative support, global macroeconomic insights, sound risk management, a dynamic trading desk and dedicated client service. We thrive in a collegial, collaborative environment on all levels of our organization. Our Approach Throughout our distinguished history, The Boston Company has maintained a steadfast commitment to its time-tested philosophy and disciplined process. As markets become increasingly complex, global and driven by the constant flow of news and information, our competitive advantage lies in our deep pool of investment talent, armed with the experience and skill to interpret market dynamics and identify the most compelling equity opportunities within this constantly evolving environment. Our firm offers a broad array of investment capabilities across geographies, capitalization and styles. Our ongoing product development is currently focused on the separation of alpha and beta and the consistent delivery of alpha. When unique needs arise, our customized client-service approach fosters collaboration with our clients to create specific solutions tailored for them.

5 Strategies & Solutions US Strategies Non-US & Global Strategies All Cap All Cap Opportunistic Global Core Large Cap Dynamic Large Cap Value Large Cap Equity Global Global Independence Global Natural Resources Large Cap Growth ACWI ex-us Value Mid Cap Mid Cap Growth Mid Cap Opportunistic Developed Markets International Equity International Small Cap Small Mid Cap Growth Non-US Value Small/Mid Cap Small Mid Cap Opportunistic Emerging Markets Equity Small Mid Cap Value Small Cap Growth Emerging Markets Emerging Markets Small Cap Value Emerging Markets Value Small Cap Small Cap Opportunistic Global Research Emerging Markets Small Cap Value Income-Focused Strategies Energy Infrastructure MLP Equity Income High Dividend Income Global Focused Income Specialty Strategies Concentrated Portfolios Region/Sector Specific Total Emerging (Equity/Fixed Income Blend) Alternative Strategies Absolute Return Event-Driven Energy Infrastructure MLP Global Healthcare Alpha Opportunities Global Natural Resources Long/Short Opportunities Global Research Long/Short Sector Opportunistic Alpha Opportunistic Appreciation Opportunistic Investor No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment.

6 Investment Environment Third Quarter 2015 Equities declined broadly during the third quarter as investors were rattled by China s economic slowdown, uncertainty about U.S. Federal Reserve policy, a rout in commodity prices and growing pessimism about corporate earnings. Among major benchmarks, the Standard & Poor s 500 Index shed 6.4%, while the MSCI EAFE Index, a measure of non-u.s. developed markets, slipped 10.2%, and the MSCI Emerging Markets Index fell 17.8%. In the U.S., the Fed left short-term interest rates unchanged after its September meeting, citing a troubled global economy and market turmoil. Later in the period, the Commerce Department boosted its GDP estimate for the second quarter, strengthening the case for a Fed rate hike later this year despite mixed September data. Within developed markets, Eurostat increased its firstand second-quarter GDP estimates for the eurozone, mainly because of faster growth in Italy and more stability in Greece. Second-quarter economic growth in the U.K. was also better than expected, bolstering the Bank of England s case that interest rates will probably increase sooner than markets expect. Conversely, Japan s economy shrank in the second quarter, albeit less than markets anticipated. Despite deteriorating data, the Bank of Japan kept monetary policy on hold, noting that the economy was still in a moderate recovery and that there was a widening trend toward higher prices. Among emerging markets, reports of a slowdown in China dominated headlines and unnerved investors in its domestic A-share market and, subsequently, other markets. In order to stem the decline, China s central bank devalued its currency in a move to stoke exports and then cut interest rates and reduced bankreserve requirements. Markets in Brazil tumbled after the country s sovereign rating was lowered to junk by Standard & Poor s as the government struggles to shore up fiscal accounts amid a faltering economy. Meanwhile, Russia s economy shrank more than originally forecast after oil prices collapsed and a currency crisis jolted consumer demand Major Index Returns Daily Cumulative Return (%) S&P 500 MSCI EAFE (net) MSCI Emerging Markets (gross)

7 Views & Insights The Sweet (and Sour) Spots in Europe s Equity Market Mark A. Bogar, CFA (September 2015) Despite recent fund inflows to Europe, Portfolio Manager Mark Bogar, CFA, still sees attractive valuations. In this paper, he pinpoints three promising trends in the European equity market and is actively avoiding another segment. Find out what they are. A Solution for Yield-Starved Insurance Companies: Dividend Equities W. Charles Cook, CFA and James Kaniclides, CFA (August 2015) While core bonds will remain a large and essential component of insurers asset allocations, diversifying into equity income strategies can enhance income and return potential. Portfolio Strategists W. Charles Cook, CFA, of The Boston Company and James Kaniclides, CFA, of Standish explain why. Battle for Barrels: Race to Lower Oil Robin Wehbé, CFA, CMT (July 2015) Oil-price declines are forcing companies to focus on costs, and they re succeeding. U.S. energy assets have caused a paradigm shift by de-risking energy investments and increasing the economics and speed at which new supply can be delivered, averting the potential for oil-price rallies. However, in this paper, Portfolio Manager Robin Wehbé, CFA, CMT, explains that investment opportunities still abound. Automobiles and the Age of Autonomy Frank J. Goguen, CFA and John D. Connolly (July 2015) The imminent era of self-driving vehicles could transform the automotive industry and others in fundamentally disruptive ways. In this paper, Senior Analyst Frank J. Goguen, CFA, and Writer John D. Connolly explore this emerging megatrend and its potential ramifications. For more market perspectives and insights from our teams, please visit

8 Disclosure This publication or any portion thereof may not be copied or distributed without prior written approval from The Boston Company Asset Management, LLC (TBCAM). Statements are correct as of the date of the material only. This document may not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or not authorized. The information in this publication is for general information only and is not intended to provide specific investment advice or recommendations for any purchase or sale of any specific security. Any statements of opinion constitute only current opinions of TBCAM, which are subject to change and which TBCAM does not undertake to update. Due to, among other things, the volatile nature of the markets and the investment areas discussed herein, they may only be suitable for certain investors. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. CFA and Chartered Financial Analyst are registered trademarks owned by CFA Institute. CMT and Chartered Market Technician are registered trademarks owned by Market Technicians Association. Contact Us For more information, please call or Daniel J. McCormack Global Head of Distribution (617)