The RBC Emerging Markets Equity team offers significant expertise in Emerging Markets equities investing through its stable team of investment professionals, who work closely together out of London. We combine a top-down thematic overlay with rigorous company-level research to support two distinct disciplines: EM Quality and EM Dividend/Value.
All strategies benefit from one investment team and research platform. We pride ourselves on deep fundamental analysis and we incorporate material environmental, social and governance (ESG) factors into investment decisions. While stock selection is the main driver of both risk and returns, this is complemented by detailed thematic research which drives top-down positioning and ensures the portfolios are positioned in areas of long-term structural growth.
Diversity of thought
We strongly feel that our diversity is critical to our success. The team’s founder and head, Philippe Langham, has consciously hired people with backgrounds, personalities and ways of thinking different from his own. We have a strong culture of discussion and debate which helps bring different perspectives to the table 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 environment. We apply this same criteria when looking at companies. We spend a lot of time evaluating company management, and engage on areas such as brand, employees and innovation, all of which we believe define the corporate culture of a firm.
Research focus
A key differentiator for the team is the breadth and depth of independent research that we do. We have built a strong research platform that has four key characteristics. It is long term, global, focused on management, and incorporates material ESG factors. 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.
ESG
We believe that material ESG factors1 may have an impact on the risk-adjusted returns of our investments and as such, we:
- incorporates material ESG factors in our investment decisions2
- Identify companies that we believe have positive ESG characteristics
- Conduct long-term thematic and ESG research
- Engage with companies on material ESG issues
1ESG factors are considered by our investment teams to varying degrees and weights, depending on the investment team’s assessment of that ESG factor’s potential impact on the risk-adjusted, long-term performance of the security and/or the fund. ESG factors are generally not likely to drive investment decisions on their own, and in some cases, may not impact an investment decision at all. RBC GAM has a general approach to active stewardship, proxy voting, and engagement that address ESG matters among other matters.
2Material refers to ESG factors that are most likely to have an impact on the financial performance of an issuer/security, and may depend on different factors such as the sector and industry of the issuer.
Investment themes
Our top-down positioning across all our portfolios continues to be driven by long-term themes. These themes are multi-decade global phenomena that have the power to endure economic cycles.