Back to top

Image: Bigstock

Is Boston Partners Small Cap Value II Institutional (BPSIX) a Strong Mutual Fund Pick Right Now?

Read MoreHide Full Article

Have you been searching for a Small Cap Value fund? You might want to begin with Boston Partners Small Cap Value II Institutional (BPSIX - Free Report) . BPSIX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.

Objective

The world of Small Cap Value mutual funds is an area filled with options, such as BPSIX. Small Cap Value funds invest in small companies with stock market valuation less than $2 billion. These funds offer more bang for an owner's buck, providing low P/E ratios, high dividend yields, and better-than-average P/S ratios.

History of Fund/Manager

BPSIX is a part of the BostonPartners family of funds, a company based out of New York, NY. Boston Partners Small Cap Value II Institutional debuted in July of 1998. Since then, BPSIX has accumulated assets of about $506.84 million, according to the most recently available information. The fund is currently managed by George Gumpert who has been in charge of the fund since December of 2005.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 9.63%, and is in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 5.91%, which places it in the middle third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. BPSIX's standard deviation over the past three years is 20.32% compared to the category average of 17.79%. Over the past 5 years, the standard deviation of the fund is 24.67% compared to the category average of 19.83%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should note that the fund has a 5-year beta of 1.14, which means it is hypothetically more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. BPSIX's 5-year performance has produced a negative alpha of -5.91, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Holdings

Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is mostly on equities that are traded in the United States.

This fund is currently holding about 96.89% in stocks, with an average market capitalization of $3.11 billion. The fund has the heaviest exposure to the following market sectors:

  • Finance
  • Industrial Cyclical
Turnover is about 64%, so those in charge of the fund make fewer trades than the average comparable fund.

Expenses

Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, BPSIX is a no load fund. It has an expense ratio of 0.99% compared to the category average of 1.06%. Looking at the fund from a cost perspective, BPSIX is actually cheaper than its peers.

While the minimum initial investment for the product is $100,000, investors should also note that each subsequent investment needs to be at least $5,000.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, Boston Partners Small Cap Value II Institutional ( BPSIX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.

Want even more information about BPSIX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Boston Partners Sm Cap Val II Ins (BPSIX) - free report >>

Published in