The RBC China Equity strategy seeks to provide long-term capital appreciation by investing in equity securities that are domiciled in, or conduct a substantial portion of their business in, China. The strategy invests in high-quality companies that demonstrate sustainable, compounding growth, and are run by trustworthy management teams. The investment team relies on its in-house research to identify investment ideas, using quantitative screens and bottom-up fundamental analysis. This investment team believes in investing in the best Chinese companies of the future, irrespective of which stock exchanges they are listed on today.
Strategy overview
- Actively managed, high conviction portfolio with disciplined and unconstrained view of the benchmark and risk;
- Quality businesses across China generating high and/or improving returns on investment throughout business and market cycles;
- Reliable management with track record of good risk management and capital allocation;
- Investment process and in-house research built on fundamental due diligence (checklist approach), long-term industry perspectives, and in-house ESG views.
Our approach
Investment philosophy and style
- Investing in businesses with high and/or improving return on capital
- A disciplined and unconstrained view of the benchmark
- We look to buy stocks we perceive to be at a significant discount to long-term fair value
Investment process
- Systematic filtering to eliminate high-risk investment ideas and narrow research universe
- Repeatable, disciplined idea generation using proprietary quantitative modelling
- In-depth, fundamental, on-the-ground research
- Incorporation of material ESG factors