Strategy Name Benchmark Strategy Launch Vehicles Team Location
RBC U.S. Microcap Core Equity Russell Microcap May 2003 Segregated Account Boston
RBC U.S. Small Cap Core Equity Russell 2000 September 1991 Segregated Account, SICAV, US MF Boston
RBC U.S. Small Cap Value Equity Russell 2000 Value June 2012 Segregated Account Boston
RBC U.S. SMID Cap Growth Equity Russell 2500 Index October 2008 Segregated Account, SICAV Boston

RBC U.S. Microcap Core Equity


The Microcap Core Equity strategy seeks to provide superior long-term investment returns compared to the Russell Microcap Index, while taking a low risk approach to microcap investing. We believe that portfolios of neglected microcap companies with low valuations, long-term attractive business fundamentals and near-term profitability improvement potential should produce superior absolute and risk-adjusted returns over time.

Portfolio Construction:

  • Benchmark: Russell Microcap Index
  • Well-diversified portfolios holding 60-90 issues
  • Majority of returns sought from stock selection
  • Maximum in a single security: 5%
  • Maximum in a single sector: 2x Russell Microcap Index weight or 15%, whichever is greater
  • Fully invested in equities; no market timing
  • Low portfolio turnover: 30 -50%
 

RBC U.S. Small Cap Core Equity


The Small Cap Core strategy seeks to provide superior long-term investment returns compared to the Russell 2000 Index, while taking a low risk approach to small company investing. We believe that portfolios of neglected small cap companies with low valuations, long-term attractive business fundamentals and near-term profitability improvement potential should produce strong absolute and risk-adjusted returns over time.

Portfolio Construction:

  • Benchmark: Russell 2000 Index
  • Well-diversified portfolios holding 50 -80 issues
  • Maximum in a single security: 5%
  • Maximum in a single sector: 2x Russell 2000 Index weight
  • Fully invested in equities; no market timing
  • Low portfolio turnover: 30 -50%
 

RBC U.S. Small Cap Value Equity


We believe that by investing in small cap companies that demonstrate long-term attractive business fundamentals, near-term profitability improvement potential, strong finances, and capable management, and attractive/low valuation the Small Cap Value strategy should produce superior investment returns and risk control over time.

Portfolio Construction:

  • Well-diversified portfolios holding 70-100 issues
  • Majority of returns sought from stock selection
  • Maximum in a single security: 5%
  • Maximum in a single sector: 2x Russell 2000 Value Index weight
  • Fully invested in equities - no market timing
  • Low portfolio turnover: 30-50%
 

RBC U.S. SMID Cap Growth Equity


The SMID Cap Growth strategy seeks superior capital appreciation through careful selection from a universe of high-quality, small- and mid-capitalization growth companies. We generally invest in profitable companies selling at reasonable vaulations utilizing a bottom-up fundamental approach. We are a conservative growth investor and invest in companies for long-term capital appreciation which results in below average turnover.

Portfolio Construction:

  • Designed to outperform the Russell 2500 Growth Index by 150-200 basis points on an annualized basis over the long-term
  • Risk controls
    • Maximum exposure to any one company will be 2.5% at cost and 4.0% at market
    • Well diversified portfolio of 70-90 names
    • Broad industry and sector exposure - no large sector bets
  • Low portfolio turnover: 15-20% annual average
  • Low composite dispersion across portfolios*

*Subject to client specific restrictions