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
Facebook Twitter LinkedIn

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."

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free
Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Microsoft Corp308.22 USD0.30Rating
TJX Companies Inc64.18 USD-0.71Rating

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.

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy