You are currently viewing the Canadian Institutional website. You can change your location here or visit other RBC GAM websites.

Welcome to the RBC Global Asset Management site for Institutional Investors
Français

In order to proceed to the site, please accept our Terms & Conditions.

Please read the following terms and conditions carefully. By accessing rbcgam.com and any pages thereof (the "site"), you agree to be bound by these terms and conditions as well as any future revisions RBC Global Asset Management Inc. ("RBC GAM Inc.") may make in its discretion. If you do not agree to the terms and conditions below, do not access this website, or any pages thereof. Phillips, Hager & North Investment Management is a division of RBC GAM Inc. PH&N Institutional is the institutional business division of RBC GAM Inc.

No Offer

Products and services of RBC GAM Inc. are only offered in jurisdictions where they may be lawfully offered for sale. The contents of this site do not constitute an offer to sell or a solicitation to buy products or services to any person in a jurisdiction where such offer or solicitation is considered unlawful.

No information included on this site is to be construed as investment advice or as a recommendation or a representation about the suitability or appropriateness of any product or service. The amount of risk associated with any particular investment depends largely on the investor's own circumstances.

No Reliance

The material on this site has been provided by RBC GAM Inc. for information purposes only and may not be reproduced, distributed or published without the written consent of RBC GAM Inc. It is for general information only and is not, nor does it purport to be, a complete description of the investment solutions and strategies offered by RBC GAM Inc., including RBC Funds, RBC Private Pools, PH&N Funds, RBC Corporate Class Funds and RBC ETFs (the "Funds"). If there is an inconsistency between this document and the respective offering documents, the provisions of the respective offering documents shall prevail.

RBC GAM Inc. takes reasonable steps to provide up-to-date, accurate and reliable information, and believes the information to be so when published. Information obtained from third parties is believed to be reliable, but no representation or warranty, express or implied, is made by RBC GAM Inc., its affiliates or any other person as to its accuracy, completeness, reliability or correctness. RBC GAM Inc. assumes no responsibility for any errors or omissions in such information. The views and opinions expressed herein are those of RBC GAM Inc. and are subject to change without notice.

About Our Funds

The Funds are offered by RBC GAM Inc. and distributed through authorized dealers. Commissions, trailing commissions, management fees and expenses all may be associated with the Funds. Please read the offering materials for a particular fund before investing. The performance data provided are historical returns, they are not intended to reflect future values of any of the funds or returns on investment in these funds. Further, the performance data provided assumes reinvestment of distributions only and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. The unit values of non-money market funds change frequently. For money market funds, there can be no assurances that the fund will be able to maintain its net asset value per unit at a constant amount or that the full amount of your investment in the fund will be returned to you. Mutual fund securities are not guaranteed by the Canada Deposit Insurance Corporation or by any other government deposit insurer. Past performance may not be repeated. ETF units are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns. RBC ETFs do not seek to return any predetermined amount at maturity. Index returns do not represent RBC ETF returns.

About RBC Global Asset Management

RBC Global Asset Management is the asset management division of Royal Bank of Canada ("RBC") which includes the following affiliates around the world, all indirect subsidiaries of RBC: RBC GAM Inc. (including Phillips, Hager & North Investment Management and PH&N Institutional), RBC Global Asset Management (U.S.) Inc., RBC Global Asset Management (UK) Limited, RBC Global Asset Management (Asia) Limited, BlueBay Asset Management LLP, and BlueBay Asset Management USA LLC.

Forward-Looking Statements

This website may contain forward-looking statements about general economic factors which are not guarantees of future performance. Forward-looking statements involve inherent risk and uncertainties, so it is possible that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution you not to place undue reliance on these statements as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forward-looking statement. All opinions in forward-looking statements are subject to change without notice and are provided in good faith but without legal responsibility.

Accept Decline

The Canadian Core Real Estate strategy aims to provide investors with access to a differentiated, core Canadian commercial real estate portfolio with the aligned oversight of two of Canada’s leading investment managers.

The strategy provides investors with a unique opportunity to invest directly alongside a leading Canadian pension plan manager in one of Canada’s largest diversified core commercial real estate portfolios. In partnership with British Columbia Investment Management Corporation (BCI) and their real estate investment subsidiary QuadReal Property Group, the Canadian Core Real Estate strategy provides investors with access to a portfolio comprising more than 60 properties across Canada’s largest cities, diversified by asset class, geography, and tenancy. BCI’s commitment to a significant ownership interest in each asset ensures long-term alignment with one of Canada’s largest public pension plan investors.

Strategy overview

  • Invests in high-quality income-producing commercial real estate assets in Canada’s major centers.
  • Assets will be broadly diversified across asset class, geography, and tenancies.
  • Resilient net operating income with 90%+ of revenue from Canada’s six largest markets.
  • Strong operational and performance alignment with one of Canada’s largest pension plan managers.

Asset class overview

  • Tends to have low relative volatility and drawdown risk compared to public markets.
  • Contractual leases create an income profile that is positively correlated to long-term domestic inflation.
  • Tends to have low correlation to other asset classes, which lowers portfolio volatility.
  • Potential to capture private market illiquidity return premium.

Our approach

Investment philosophy and style

The investment strategy focuses on factors that the manager believes will allow the strategy to benefit from significant long-term urbanization trends, including:

  • proximity to long-term drivers such as population, income, and job growth;
  • a core asset composition featuring high-quality income-producing properties in large urban areas; and,
  • broad diversification across major Canadian cities, property types, and tenancies.

The strategy may also hold cash and cash equivalents, and other money market instruments or money market strategies managed by the manager as a component of its cash management strategy.

Portfolio construction

In partnership with BCI and QuadReal, RBC GAM has established a well-diversified core domestic portfolio to form the strategy. The principles used to construct the portfolio include:

  • BCI and the strategy each hold a meaningful ownership interest in the portfolio’s assets;
  • each asset is consistently underwritten to ensure it is income-producing and supports target portfolio performance for the long term;
  • the portfolio overall will maintain a focus on resilient income generation with development exposure centered on a “develop to hold” strategy; and
  • the portfolio will remain fully diversified across an institutional-quality portfolio while targeting a minimum of 90% of its gross asset value invested in Canada’s six major urban centers.

We believe this approach best aligns the interests of the involved parties and has created an attractive and resilient portfolio for our clients.

We also work in partnership with QuadReal to identify future investment opportunities appropriate for the strategy, including proprietary rights to additional BCI-owned assets along with externally sourced investments. As co-owners with BCI in each asset the strategy holds, we work together on all major decisions, including budget approvals, capital investments, and financing.

Portfolio management

The RBC Real Estate team, supported through the deep internal resources provided by both RBC and RBC GAM, is responsible for portfolio management of the strategy. In addition, the team is supported by QuadReal, who provides in-depth support for the asset and property management functions for all holdings in the portfolio. QuadReal performs the same asset and property management functions for BCI, creating natural performance alignment for the co-ownership.

  • Portfolio construction: The RBC Real Estate team manages the portfolio construction strategy, including control over all investment decisions. The strategic portfolio decisions are guided by factors that include the macroeconomic and demographic outlook for cities, types of assets, and operating businesses. The portfolio allocations are constantly monitored through detailed performance monitoring (at both an individual asset and total portfolio level) with anticipated or prevailing risks and threats incorporated into the short, mid, and long-term planning. The RBC GAM Real Estate Investment Committee provides performance and risk oversight, including input into annual business plans, investment decisions, and any conflict resolution. QuadReal, in their role as asset and property manager, provides proprietary asset-level, portfolio-level, and broad industry data and analysis that support the team in their decisions.
  • Asset management: Our Partners at QuadReal are responsible for asset management of the underlying properties that comprise the strategy. They perform the same function for BCI and have significant experience managing the current assets. The strategy is able to leverage QuadReal’s comprehensive skills and their long-standing market and active asset management experience to provide a competitive operating and investment advantage in the market. This includes ongoing planning for the properties (on a three-year rolling basis), reporting, and annual budget reviews for the properties and the portfolio. In terms of sourcing new opportunities, the strategy has access to QuadReal’s transaction services, and performs market research in cooperation with the RBC Real Estate Team.
  • Property management: QuadReal is responsible for property management associated with the strategy’s assets, which includes property operations, maintenance, service, leasing, and property accounting. An internal property management approach has several benefits, which are predicated on the vertical integration of asset and property management synergies gained from information sharing across these functions.

Additional information

Inception
October 2019
Primary benchmark
Canadian Consumer Price Index plus 4%
Vehicle
Canadian Investment Fund

Investment team

RBC GAM Private Markets Real Estate Investment team

We seek to provide strategies that deliver attractive and predictable income, strong total returns, limited volatility and low correlation to other asset classes

Connect with our team to learn more

Contact us

body content

Accept Decline