Portfolio Manager Updates
In our quarterly portfolio manager presentations, we dive into the latest quarterly performance-drivers and share our thoughts on the market environment. Click the link below each video for access to the corresponding presentation.
These videos are provided for informational purposes only and should not be considered an offer for a particular security or securities. Views are as of the date of recording and are subject to change at any time based upon market or other conditions. Boston Partners disclaims any responsibility to update such views. Any forward-looking statements are not guarantees of future performance or occurrences and actual results or developments may differ materially from those projected. These views should not be relied on as investment advice, and because investment decisions are based on numerous factors, may not be relied on as an indication of trading intent on behalf of Boston Partners. Please consult your tax or financial advisor for additional information concerning your specific situation.
Past performance is not a guarantee of future results.
The holdings identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. To receive a complete list of securities purchased, sold, or recommended for this account, their contributions to the portfolio’s overall performance during the time period cited and the calculation methodology used, please contact a Boston Partners representative.
Alpha: A measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a product and compares its risk-adjusted performance to a benchmark index. The excess return of the product relative to the return of the benchmark index is the alpha.
Beta: A measure of a portfolio’s market-related risk or its price movement in relation to a benchmark. Securities with betas higher than 1.0 have been, and are expected to be, more volatile than the benchmark; securities with betas lower than 1.0 have been, and are expected to be less volatile than the benchmark.
Dividend Yield: The dividend yield or dividend–price ratio of a share is the dividend per share, divided by the price per share. It is also a company’s total annual dividend payments divided by its market capitalization, assuming the number of shares is constant. It is often expressed as a percentage.
Dry powder -Dry powder refers to cash or marketable securities that are low-risk and highly liquid and convertible to cash. Funds held as dry powder are kept in reserve to be deployed in case of emergency. The term is often used in terms of venture capitalists, where dry powder allows them to invest in opportunities as they arise.
Enterprise value-to-sales (EV/sales): A financial ratio that measures how much it would cost to purchase a company’s value in terms of its sales. The EV/sales multiple gives investors a quantifiable metric of how to value a company based on its sales while taking account of both the company’s equity and debt.
Earnings per share (EPS) is a figure describing a public company’s profit per outstanding share of stock, calculated on a quarterly or annual basis. EPS is arrived at by taking a company’s quarterly or annual net income and dividing by the number of its shares of stock outstanding.
Free Cash Flow Yield: A financial solvency ratio that compares the free cash flow per share a company is expected to earn against its market value per share. The ratio is calculated by taking the free cash flow per share divided by the current share price.
FY0 and FY1 Price To Earnings (P/E FY1): A method of valuing stocks, calculated by dividing the closing price of a company’s stock by its annual earnings per share. A higher multiple means investors have higher expectations for future growth and have bid up the stock’s price. P/E FY1 is simple measure of one year earnings per share growth from the prior fiscal year (FY0) to the current fiscal year (FY1).
Nominal gross domestic product is gross domestic product (GDP) evaluated at current market prices. GDP is the monetary value of all the goods and services produced in a country. Nominal differs from real GDP in that it includes changes in prices due to inflation, which reflects the rate of price increases in an economy.
Operating Return on Operating Assets (OROA): Efficiency financial ratio that calculates the percentage return a company earns from investing money in assets used in its operating activities.
Price-to-Book (P/B): The price per share of a stock divided by its book value (net worth) per share. For a portfolio, the ratio is the weighted average price-to-book ratio of the stocks that it holds.
Price-to-sales: Ratio calculated by taking a company’s market capitalization (the number of outstanding shares multiplied by the share price) and divide it by the company’s total sales or revenue over the past 12 months. The lower the P/S ratio, the more attractive the investment.
Return-on-Equity (ROE): A measure of financial performance calculated by dividing net income by shareholders’ equity. Because shareholders’ equity is equal to a company’s assets minus its debt, ROE is considered the return on net assets.
Real gross domestic product is a macroeconomic measure of the value of economic output adjusted for price changes. This adjustment transforms the money-value measure, nominal GDP, into an index for quantity of total output.
ROA – Return on assets is a profitability ratio that provides how much profit a company can generate from its assets. In other words, return on assets (ROA) measures how efficient a company’s management is in earning a profit from their economic resources or assets on their balance sheet.
Yield Curve – A yield curve is a line that plots yields (interest rates) of bonds having equal credit quality but differing maturity dates. The slope of the yield curve gives an idea of future interest rate changes and economic activity.