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Research and White Paper

When put on the spot to identify the one thing an investor should consider when selecting a global equity fund, our expert suggested the number of holdings as a helpful indicator of many important characteristics. First amongst these is conviction, which suggests how strongly a particular investment aligns with the investment philosophy. It is this selection that creates the opportunity for outperformance. Too many holdings may dilute returns, but too few can lead to volatility. A focused number of holdings also facilitates high levels of ESG integration and active ownership, and these, in turn, reinforce conviction.

These characteristics are important features of the recently launched RBC Global Equity Leaders strategy. This strategy is a focused, high-conviction portfolio of predominately large-cap global firms that, in the manager’s opinion, match its philosophy of selecting great businesses at attractive valuations. The strategy is differentiated by its risk aware portfolio construction and high levels of ESG integration and active ownership.

CATEGORIES: Asset Classes: Equity Investment Style: ESG