The Emerging Markets Small Cap Equity strategy seeks to provide long-term capital growth by investing in a portfolio of emerging markets small-cap equity. The strategy emphasizes quality and long-term growth at a reasonable price, by combining rigorous company-level research with a top-down overlay driven by long-term secular themes. The strategy adopts a long-term, high-conviction approach.

Strategy overview

• Long-term approach with a focus on quality and sustainable growth
• Distinctive blend of top-down thematic and fundamental company research
• Incorporates material Environmental, Social, and Governance (ESG) factors into investment decisions
• High-conviction portfolio of typically 45-55 stocks
• Dynamic, centralized team, dedicated to proprietary and differentiated research

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Our approach

Diversity

We strongly feel that our diversity has been critical to our success. The RBC Emerging Markets Equity team’s founder and head, Philippe Langham, has consciously hired people with different backgrounds, personalities and ways of thinking from his own.

We have a strong culture of discussion and debate amongst the team, which encourages different perspectives when evaluating investment opportunities

Culture

We place a big emphasis on culture within our own team, and pride ourselves on having a highly open and collaborative dynamic. We apply this same criterion when looking at companies.

We spend significant time evaluating company management and engaging with them on areas such as brand, employees and innovation, all of which we believe define corporate culture.

Research focus

We have built a strong research platform which has four key characteristics: long term, global, emphasis on management, and ESG integration.

We focus on long-term, secular themes as part of our top-down research, and have a detailed, systematic approach from a bottom-up perspective.

Our approach to ESG

• We integrate material ESG factors in our investment decisions
• Identify companies that we believe have strong ESG credentials.
• Conduct long-term thematic and ESG research
• Engage with companies on material ESG issues

Additional information

Inception

July 2013

Primary benchmark

MSCI Emerging Markets Small Cap Net Index

Vehicle

Segregated Account, SICAV, US Mutual Fund, Canadian Investment Fund

Related documents

Portfolio managers

Investment team

RBC Emerging Markets Equity team

Deep, disciplined security selection and risk management, combining top-down thematic views with rigorous company-level research