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Please read the following terms and conditions carefully. By accessing 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.

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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.

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The Fundamental Minimum Volatility Canadian Equity strategy is a diversified, actively-managed portfolio that aims to provide long-term capital growth by investing in common shares of Canadian corporations. The strategy’s investment process is primarily based in fundamental research, while stock selection decisions are ultimately based on an understanding of the companies, their business, and their outlook.

The strategy is designed to achieve a lower level of volatility of returns than the broader Canadian equity market while adding value. To do so, the strategy seeks companies that are attractively valued, which to the team means that their share price already reflects most of the risks, but ignores much of the upside opportunity.

Strategy overview

  • Experienced team of dedicated sector specialists and portfolio managers.
  • Core large-cap Canadian equity portfolio.
  • Emphasis on identifying companies with attractive relative valuations and risk/reward characteristics.
  • Scenario-based approach continuously re-evaluates potential reward and risk.
  • Investment process is primarily based on fundamental research, and some consideration of quantitative and technical factors.
  • Material ESG factors are incorporated into the investment philosophy and process.

Our approach

Investment philosophy and style

  • The investment philosophy underlying the team’s approach is centered on the belief that higher quality companies outperform over the long term, that growth is key to long-term value creation, and that the price paid for a stock matters to long-term returns. The team believes that long-term value creation is more important than near-term valuations.

Investment process

  • Bottom-up fundamental process complemented by the use of quantitative tools and technical analysis.
  • Investment universe is defined by the MSCI Canada Minimum Volatility Index.
  • This strategy is best described as an ongoing recalculation of scenarios that continually reconsiders the potential reward and risk for every company in the investment universe as market prices shift and/or new information materializes.
  • The team uses a robust checklist as a starting point when building the portfolio, which uses a proprietary quantitative model to score each stock in the investment universe. The quantitative ranking measures the operating performance of a business (e.g., leverage, balance sheet strength, sector-specific measures), combined with stock market measures like valuation and price momentum.
  • The stocks that pass the quantitative screen undergo fundamental scenario analysis, which includes four primary elements: company analysis, scenario analysis, catalysts, and valuation.
  • Analysis and integration of material ESG factors are incorporated in the investment approach. While there is no blanket ESG criteria, the aim of the analysis is to identify, assess, and engage with companies on relevant risks and opportunities.

Portfolio construction

  • By diversifying the sources of expected return, the investment team reduces the potential that any one mistake can have an inappropriately large impact on the overall strategy. Portfolio weights are heavily influenced by risk/reward analysis.
  • In constructing the strategy, the team focuses on scenario analysis that indicates where poor fundamental outcomes are anticipated (and are therefore reflected in the price) while trying to avoid stocks where pessimistic outcomes are practically being ignored.

Additional information

December 2019
Primary benchmark
MSCI Canada Minimum Volatility Index
Canadian Investment Fund

Investment team

​RBC North American Equity team

Rigorous fundamental research aims to identify companies able to achieve consistent results through various market conditions

Connect with our team to learn more

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