Professional Money Management

Managing risk through enhanced diversification

Diversifying your investments is the golden rule for reducing risk. Your A+ portfolio benefits from three levels of diversification through our “multi-asset, multi-style, multi-manager” approach:

• Multi-asset First, we diversify your portfolio by asset class – between equities, fixed income and cash – to help achieve your specific long-term investment objectives while managing risk.
• Multi-style Next, we diversify your portfolio by investment style, carefully combining portfolio managers who specialize in different investment styles, such as growth and value.
• Multi-manager Finally, we diversify your portfolio by investment manager, mitigating the risks associated with investing with a single asset manager.

Investment selection committee

The initial evaluation concludes when an RBC investment committee considers the most promising investment managers for approval. To be approved, each candidate must pass a thorough committee review that includes a detailed discussion of facts and informed opinions derived from the aforementioned research process.

When deciding to retain or replace an investment manager, we consider:

• Changes in organizational structure
• Significant personnel changes in the relevant investment team
• Consistency of investment strategy and style
• Regulatory issues
• Compliance with mandate
• Quality of service
• Performance pattern, including level and volatility
• Performance relative to appropriate benchmarks and other managers with similar mandates

Research and information services

• RBC Wealth Management Services library of publications and articles on a wide range of tax, retirement and estate planning topics
• Access to the broadest research in Canada for domestic and global markets, including RBC Capital Markets, JP Morgan, and independent Veritas exclusive to RBC
• Exclusive client publications, including Global Insight, Perspectives and Wealth Management Review