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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.

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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 International Focus Equity strategy seeks to provide long term capital appreciation by investing in equity securities of companies located throughout the world, including both developed and emerging markets, excluding the U.S. The strategy invests in companies which we believe have winning business models, expanding market share, growing end markets and strong management teams; what we collectively call strong ‘Competitive Dynamics’. We believe that the superior sales, profits and cash flows that result from strong Competitive Dynamics drives attractive share price performance and economic value creation. The strategy uses a disciplined risk management process to actively manage and diversify risk exposures (such as currency, market or geography) which permits long-term returns to be predominately driven by bottom-up fundamental stock-picking or stock specific risk.


Strategy overview

  • High conviction portfolio of 30-70 holdings
  • Majority of returns sought from stock selection
  • Maximum in a single security: 7.5%
  • Sector exposure +/- 10% versus index
  • Country Exposure:
    • Individual: +/- 10% limit versus the index
    • U.S.: +/- 15% limit versus the index
    • Non-index countries: min: 0%; max: 2% versus index
  • Region Exposure: +/- 15% limit versus the index

Our approach

Team

The RBC Global Equity team has been managing client money the same way since our foundation in 2006. The investment team enjoys a very strong, collaborative culture based upon teamwork, transparency, alignment and continuous improvement.

The Team believes culture is critical in turning a collection of skilled individuals into a strong team that is committed to making a positive difference for our clients, for investee companies, and for the communities in which we operate.


Philosophy

We believe that over the long-term, investing in great companies at attractive valuations generates value for shareholders that significantly exceeds the return on the average company or the market.

Great businesses create contingent assets based on extra-financial forms of capital. These are often subtle, qualitative characteristics that can take time to be reflected in company financials; characteristics such as sustainable business practices, engaged employees as well as great relationships with suppliers, customers, and the community. Because these do not immediately accrue to the bottom line and are not reflected in typical financial reporting, the market often underappreciates their impact. However, healthy extra-financial capital mitigates risk and creates long-term economic value. We believe that by evaluating the health of extra-financial factors, including environmental, social and governance (ESG), we are not only able to reduce risk and uncover alternative sources of alpha, but also achieve a responsible allocation of capital.


Our Competitive Dynamics framework

We use industry analysis to identify great businesses within their competitive set before assessing them using our Competitive Dynamics framework. We will not invest unless all four criteria are satisfied.

Winning business model

Each business in the portfolio has a unique, hard-to-replicate element that gives it a sustainable edge over its competitors. That element varies from industry to industry, which is why we are structured as a team of industry experts.

Market share opportunity

We pay close attention to the industry structure and nature of competition and expect a company with a true edge over competitors to expand or at least maintain its market share.

End-market growth

We believe that a company with a winning business model able to take market share will amplify the amount of value creation if it is exposed to growing end markets.

Management and ESG practices

We believe investing is not simply renting a share for a period, but taking an ownership stake in a business and accepting the responsibility that ownership entails. We want to partner with responsible management teams who can both operate the business effectively on a day-to-day basis and position it strategically over the long term.

Portfolio construction and risk management

In constructing the portfolio, we use our proprietary risk application in order to analyse the portfolio's risk exposures, enabling us to build-in sufficient diversification for us to capture the stock-specific intended risk sources whilst maintaining a focused portfolio of best ideas. By ensuring the individuality of those best ideas, we maximize diversification of unintended risk exposures and avoid bias-creating concentrations. The result is a portfolio where excess returns are dominated by the investment philosophy and stock-specific risk.

Additional information

Inception
January 2015
Primary benchmark
MSC ACWI ex-US Index
Vehicle
Separate Account, US 40 Act, US 3C7, Canadian Investment Fund

Portfolio managers

Investment team

RBC Global Equity team

Our purpose is to make a positive difference to our clients, to the companies we own and society as a whole, through responsible long-term investment

Connect with our team to learn more

Contact us

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