RBC Global Asset Management: 2016 Steward of the Year

Dan Chornous shares RBC Global Asset Management's approach to global risk and uncertainty.

Christopher Davis 7 February, 2017 | 6:00PM
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Christopher Davis: Hi, I'm Christopher Davis with Morningstar. I'm here with Dan Chornous, RBC Global Asset Management's Chief Investment Officer. He is here to receive Morningstar's Steward of the Year award for 2016; he has the trophy right here in hand. Congratulations, Dan.

Dan Chornous: Well, thank you very much, Christopher. We're very excited to have received this from you.

Davis: It seems like globalization is in retreat. The political environment is more tumultuous. How do you analyze whether your portfolio managers have adequately positioned the portfolios to manage these kinds of risks?

Chornous: Well, I think it's early on in the Trump era. Obviously, when we had several weeks of policy actually announced, but there has been a rapid pace of these developments. And there are obviously two aspects to this. There's concern over changes in world trade and how that might affect not only global economic growth, but corporate profits and valuations. On the other hand, there are some positives that the markets are embracing; perhaps a better tone or pulse to world growth, little higher levels of inflation, a little less regulation and perhaps lower tax rates for corporations. So it's a balance and, certainly, we're monitoring that minute-by-minute.

Davis: And do you think it's a potentially disadvantageous environment for Canada? It seems like whether it would be reforming NAFTA or renegotiating, as President Trump likes to say, or U.S. tax reform, it could be a real negative for type countries like Canada.

Chornous: There are certainly challenges that we've seen in the paper every day, that we worry about, that Canada faces, that it didn't face with the former administration. But as I said a moment ago, I think we want to be careful and analyze each of these things as they move through Congress and out of the administration and actually become economic policy.

Davis: All right. Well, thank you very much, Dan. Congratulations again on your award.

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Christopher Davis

Christopher Davis  Christopher Davis is Director of Manager Research at Morningstar Canada.

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