Our Investment Discipline
Our investment philosophy is grounded in the research of many renowned academics and economists. Our investment discipline is sound, rational and well defined.
Every quarter, the RBC Investments Strategy Committee(comprised of senior investment professionals) forecasts key macroeconomic variables, such as expected interest rate moves, economic growth, earnings growth, and prevailing valuations of equity markets. Through this analysis, the committee develops recommended over-weights and under-weights for each of the major sectors. These recommendations determine how many companies in your portfolio will be invested in each sector. This enhances your portfolios ability to deliver attractive returns long-term.
Backed by research from leading North American firms and independent analysis from portfolio managers and research analysts, the selection process is based on a multi-disciplinary approach. Each company is assigned a score based on fundamental, technical, and quantitative analysis.
From the universe of choices available to investors, approximately twenty companies are to be selected for your portfolio. Only those that score well across the three research disciplines described above will be included. Confining your portfolio to these companies means that you will own companies with attractive potential within their peer group. It also gives you the resolve to ride out the inevitable bad markets, confident in the knowledge that such companies are likely to weather the downturn and be the outperformers when markets eventually turn up once again.
Our clients understand precisely the methodology that we use to invest their dollars and the long-term success of our strategy. Our goal is to match the investment strategy with the objectives and goals of our clients. We develop portfolios structured for each of our clients using a combination of different asset classes designed to meet their specific needs. The driving forces behind our investment strategy are discipline, tax-efficiency, competitive returns, diversification and preservation of principal. The portfolios are managed to adapt to changing economic conditions, tax considerations, cash-flow needs and the clients personal situation. We follow a disciplined investment strategy designed to maximize wealth in a conservative, well thought out manner.