RBC: A steady course for target-date education funds

Amidst the volatility, Sarah Riopelle at RBC has maintained stability for education savers by focusing on the big picture

Michael Ryval 29 August, 2019 | 2:00AM
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Even as markets turned volatile in mid-August, RBC’s Sarah Riopelle maintained a steady course for a suite of four target date education funds. By cutting through the noise and focusing on her long-term strategy, she was able achieve double-digit returns in uncertain times by avoiding an over-reaction to near term market events.

“Short-term market movements do not prompt us to make any changes to the portfolios,” says Riopelle, vice-president and senior portfolio manager, investment solutions at Toronto-based RBC Global Asset Management Inc., “The target education funds are based on a ‘glide-path’, so they don’t have a tactical overlay to them.” Target-date funds follow a “glide-path” which adheres to a gradually changing asset allocation – typically becoming increasingly conservative - until the fund reaches its target date.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
BMO Target Education 2035 Portfolio A14.05 CAD0.32Rating
Fidelity ClearPath 2035 Port Series B21.25 CAD0.16Rating
RBC Target 2025 Education Fund F10.84 CAD-0.03Rating
RBC Target 2030 Education Fund A15.18 CAD0.03Rating
RBC Target 2035 Education Fund A12.15 CAD0.04Rating

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Michael Ryval  

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