Resource fund manager looks for growth

RBC’s Brahm Spilfogel focuses on companies, and not on predicting swings in commodity prices

Diana Cawfield 18 April, 2019 | 5:00PM

To navigate the challenges and cyclical nature of the resource sector, RBC portfolio manager Brahm Spilfogel uses a strategic investment approach that smooths out volatility. Predicting swings in commodity prices is not part of the process.

“When we look at this really big universe, we aren’t trying to guess where the commodity prices are going to go in the future,” says Spilfogel, vice-president and senior portfolio manager of Canadian Global equities at RBC Global Asset Management in Toronto. “We’re always trying to find companies that can grow either their cash flows or their resources in a flat commodity environment.”

Over the course of a cycle, whether oil prices rise or fall, the focus is on being in the top half of the industry in terms of above-average returns on invested capital. According to Spilfogel, those companies tend to do better over a longer period of time.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
BHP Group PLC ADR30.34 USD0.80
Rio Tinto PLC ADR45.56 USD1.45
Royal Dutch Shell PLC B16.50 USD7.42
Total SA37.48 USD4.52

About Author

Diana Cawfield

Diana Cawfield