Journey Investments is a US-based investment management firm founded in 2010. It offers a range of actively managed equity and fixed income strategies for institutional and individual investors. Journey Investments has built a strong track record over the past decade, delivering solid returns for its clients. However, the firm charges high management fees, especially for retail investors, which has sparked some negative journey investments reviews. In this article, we will take a closer look at Journey Investment’s investment strategies, performance history, fee structure and what current and prospective clients are saying about the firm.
Journey focuses on active fundamental strategies across stocks and bonds
Journey Investments runs a range of actively managed strategies across global equities and fixed income. Its core offerings include US large cap growth, US dividend growth, global equity, aggregate bond and municipal bond strategies. The firm employs a fundamental, bottom-up approach based on in-depth research and analysis of individual companies and securities. While many critics argue that passive investing is superior, Journey’s portfolio managers aim to beat their respective benchmarks through selective security selection and actively timing entry/exit points. Journey’s investment process involves both quantitative screening based on fundamentals as well as qualitative assessments of management and industry trends.
Most strategies have outperformed benchmarks over 10+ years
An analysis of Journey’s track record shows most of its strategies have outperformed their benchmarks over the past decade. For example, its US Large Cap Growth strategy has returned an annualized 15.2% over the past 10 years, outpacing the S&P 500 by 3.3% per year. The US Dividend Growth strategy has beaten the Russell 1000 Value index by 1.9% annualized over the same period. Journey’s municipal bond and aggregate bond strategies have also exceeded their benchmarks consistently. The firm’s strong long-term performance record is impressive given that the majority of active managers fail to consistently outperform. Journey attributes its success to its veteran portfolio management team and dedication to rigorous fundamental research.
High management fees have sparked some negative reviews
While Journey Investment’s historical returns are solid, its management fee structure has attracted some negative feedback from both institutional and individual investors. The firm’s strategies aimed at institutional clients have expense ratios ranging from 0.60% to 0.75%. However, its retail share classes charge significantly higher fees of up to 1.25% per year. Such high fees make it difficult for individual investors to generate meaningful outperformance net of fees. Consequently, some clients have complained about Journey’s steep fees despite its strong performance record. For example, one review on Investor Junkie states: “Fees are outrageous for retail investors. You’re basically cancelling out any potential for alpha generation.” Others argue that in an era of broad index funds charging 0.03%, Journey’s fees seem egregious in comparison.
Mixed client reviews reflect performance vs. fees debate
Looking across third-party investment platforms, Journey Investment’s client reviews present a mixed perspective. Many investors are satisfied with the firm’s long-term results but believe the high fees are unwarranted. For instance, one client on InvestorPoint says: “I’ve been invested in their US Dividend Growth strategy for 7 years and it’s consistently beat the benchmark. I just wish their fees weren’t so high.” However, other clients argue the strong returns are worth the premium fees. As one review on AdvisoryHQ states: “Sure their fees are high, but most active managers underperform. I’ll gladly pay more for one of the few who can actually beat the market consistently.” In summary, opinion on Journey Investments seems split between those focused strictly on costs versus investors who put more emphasis on returns.
Consider Journey for active strategies, but costs may eat into returns
For investors seeking active management in US equities and bonds, Journey Investments is worth considering given its impressive long-term track record. However, prospective clients will need to weigh the firm’s potential for benchmark-beating returns versus its lofty fee structure. Retail investors, in particular, are likely to have a high hurdle to generate alpha after fees. As with any investment manager, clients should scrutinize Journey’s strategies to ensure there is a differentiated investment process and strong alignment of incentives between the manager and investor. But for those comfortable with the firm’s highly active approach and willing to pay up, Journey Investments provides access to veteran portfolio managers with a proven ability to outperform over full market cycles.
In summary, Journey Investments has delivered very strong historical returns across its actively managed equity and bond strategies over the past decade, which is no small feat. However, its high management fees, especially on retail share classes, have sparked some negative feedback from fee-conscious investors. Opinions remain divided on whether Journey’s proven outperformance capabilities justify the steep costs. For investors prioritizing returns over expenses, the firm is worth considering given its veteran team and impressive long-term track record.