The Multi-Strategy Alpha Alternatives strategy seeks to generate positive absolute returns with moderate risk of annual drawdown and moderate correlation to traditional asset classes. The strategy aims to achieve this objective through exposure to a strategic mix of RBC GAM alternative, absolute return, and other investment strategies.
The strategy is diversified among several alpha sources, currently including North America Multi-Strategy, Market Neutral Equity, Long/Short Investment Grade Credit, Event Driven Credit, Global Sovereign Rates and Currencies, High Yield Mortgages, and Direct Core Canadian Real Estate. The strategy mix is managed to best position the strategy to meet its investment objectives. Overall strategy mix is actively managed by the RBC GAM Alternative Investment Committee, and reflects its market outlook regarding relevant opportunities and risks.
Strategy overview
- Targets absolute returns with moderate level of risk
- Diversified exposure to leading alternative investment strategies managed by RBC GAM
- Broad investment universe across global fixed income, equities, and select private markets
- Strategy mix is actively managed to take advantage of opportunities and manage risk
- Redemptions available monthly subject to a notice period
Our approach
Investment philosophy and style
- Focus on delivering consistent absolute returns through market cycles
- Diversification across markets and strategies helps improve return consistency and manage risk
- The strategy mix is actively managed to take advantage of market opportunities
- Underlying fund transparency is key to understanding and managing portfolio risks
Investment process
- Leverage our global insights to identify expected performance drivers, opportunities, and risks
- Identify strategies best positioned to capitalize on opportunities
- Set a strategy mix that best positions the strategy to meet its investment objectives
- Regularly re-assess the mix to ensure alignment with investment objectives and opportunities
- Proactive risk management through review of individual and aggregated risk exposures
Portfolio construction
- Typically invested in 5-10 investment strategies
- Maximum single strategy weight is capped at 40%
- Strategy mix is managed using quantitative and qualitative tools
- Each strategy is weighted based on the strength of conviction and outlook for the strategy, as well as its expected return and risk contribution to the overall strategy over the short, medium, and long term