How RBC Global Equity uses ESG approach to drive performance

"We want to know that management teams are making the right decisions for the business and its employees," says RBC's Jeremy Richardson.

Diana Cawfield 29 November, 2018 | 6:00PM

Environmental, social and governance (ESG) is at the heart of the investment process, says Jeremy Richardson, a senior portfolio manager at RBC Global Asset Management in London, UK. Richardson is part of a team of 12 on the Morningstar 5-star rated RBC Global Equity mandate, led by Habib Subjally,

"Fundamentally," says Richardson, "finding great companies that are conducting themselves responsibility is very important to us. ESG has become more and more important and we want to know that the management teams are making the right decisions for the business and its employees to drive long-term performance."

Risk management is also at the heart of the mandate. To that end, three people on the team -- called "portfolio engineers" -- focus on risk and portfolio construction, including a diversified mix of holdings across sectors and industries. "People always talk about capital and allocation," says Richardson, "but it's actually the risk you take that drives the returns. It's very important that you're taking risk in the areas where you expect to get rewarded."

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Microsoft Corp210.32 USD0.54
TJX Companies Inc57.21 USD-0.90

About Author

Diana Cawfield

Diana Cawfield  Diana Cawfield is an award-winning writer who has been a regular Morningstar contributor since 2000. Her numerous publication credits include the Toronto StarAdvisor's Edge and Chatelaine, as well as the Canadian Securities Institute's online educational services.

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