Asset Allocation
A portfolio’s asset allocation is an important determinant of total portfolio return and return variability. When given discretion, we aim to optimize clients’ portfolios based on their investment guidelines and risk tolerance. We model portfolio outcomes considering valuation multiples, as well as economic and market variables, and tilt portfolios accordingly.
Equity Management
We believe higher quality companies – those with durable business models and long track records of greater profitability and steady growth – offer opportunities to outperform comparable equity benchmarks or more risky alternatives.
We believe that the markers of quality are difficult to isolate by purely quantitative means. Our team of analysts seeks to identify high quality companies with sustainable business models using a disciplined, repeatable framework. Fundamental analysis consists of a diligent review of company financial statements, their footnotes, and other resources in the public domain. This includes an assessment of material (or significant) environmental, social, and governance risks and opportunities. Finally, analysts consider a stock’s valuation relative to its fundamentals, trading history, peers, and prospects.
Environmental, Social, and Governance Considerations in Decision-Making
One of our core strengths is our ability to assess company performance beyond simple products and services criteria. We consider a range of factors, including the company’s corporate governance, environmental record, treatment of employees, and its impact on the communities in which it operates.
ESG Integration Case StudyFixed Income Management
Our fixed income approach focuses on five pillars:
1) duration (managing interest rate sensitivity)
2) credit (owning safe spread)
3) sector (identifying unique exposures)
4) diversification (mitigating portfolio volatility)
5) liquidity (preserving ample flexibility to meet client needs)
We generally invest client assets in the obligations of the US government and its agencies or investment-grade securities of high quality US corporations.
Portfolio Construction
For multi-asset strategies, the portfolio management team uses quantitative and qualitative tools to determine the appropriate mix of fixed income and equity across market capitalization (small to large) and geography (US and global).
Within equity and fixed income strategies, portfolio management teams seek to construct portfolios comprised of higher quality securities trading at reasonable valuations. We seek diversification across individual positions, sectors, and when applicable, geographies to reduce idiosyncratic and other unintended factor risks.
Meet the Investment Team
Boston Trust Walden’s investment team is comprised of forty well-credentialed and experienced investment professionals, all located in our Boston, MA office.
Our Team