Boston Trust manages equity portfolios utilizing a range of quantitative and qualitative techniques with a primary focus on security selection and portfolio construction. The result is a portfolio of higher quality stocks with carefully measured style, valuation, and industry exposures. This approach is applied across market capitalizations.
Since 1981 our large cap core equity approach has focused on diversification and higher financial quality. Our portfolio composition policy considers sector exposure and style factors, while our quality emphasis guides security selection. Our high quality core equity portfolios seek to outperform the S&P 500 with less risk over a market cycle.
Introduced in 1996, Boston Trust's high quality growth style seeks to invest in companies judged to have superior growth prospects. Our portfolio companies generally exhibit earnings growth in excess of GDP growth. We also strive to avoid stocks we judge to be overvalued. Boston Trust's high quality growth portfolios are designed to outperform the average growth manager over time with less risk.
Also introduced in 1996, Boston Trust's value portfolios seek to invest in higher quality, yet undervalued stocks. We generally avoid "deep value" securities and their associated risks. Through the application of quality screens to low valuation companies, Boston Trust seeks to construct value portfolios that capitalize on improving valuations while minimizing the risk of underperformance due to deteriorating business prospects.
With our mid cap product, Boston Trust strives to achieve long-term capital appreciation through a portfolio of generally higher quality medium sized companies. Investments are diversified across a wide range of industries, with allocations varying over time based on relative valuations and economic expectations.
Small Cap portfolios invest primarily in small capitalization companies that offer innovative products and services in above average growth markets. The portfolios are broadly diversified and possess portfolio characteristics superior to the small cap equity market. A small cap portfolio can complement a client's existing portfolio and is suitable for a small portion of the assets of an investor who is able to assume higher levels of risk.
