Canada is home to many great companies that make excellent investments. But the world has so much more to offer for investors who venture beyond Canada’s borders. A portfolio that invests in a wide variety of geographically diverse asset classes is a strong, resilient portfolio – one that can deliver a return in line with that of many of its equity components but with lower risk. That can mean a smoother ride in tough markets.
Today’s investors are looking for more global investment options. RBC Global Portfolios bring together our strong global equity and global fixed income capabilities in a new solution – drawing on over 35 years of experience building and managing asset allocation solutions.
Canadians may not realize how much of their wealth is tied to Canada. Your home, your income and your pensions could all be focused here. So could your investments.
| Percentage | Asset Type | ||
|---|---|---|---|
| 48.4% | Real estate | ||
| 13.7% | Funds, stocks and bonds (Domestic) | ||
| 21.2% | 7.5% | Funds, stocks and bonds (Foreign) | |
| 13.4% | Pensions, insurance, CPP/QPP | ||
| 12.1% | Cash and GICs | ||
| 4.9% | Private mortgages and businesses | ||
Source: Investor Economics Household Balance Sheet Report 2023, data as of December 2022.
A smoother investment experience
As you invest globally, you add the benefits of far greater diversification to your portfolio. When one region is performing poorly, another could be enjoying stronger performance. This can help you achieve more stable returns over the long term.
More opportunity
Canada accounts for just under 2.6%1 of the world’s capital markets. So tapping into the vast investment universe outside Canada creates greater opportunities to increase your wealth. You can:
- Access the growth and innovation that’s happening in other parts of the world.
- Invest in sectors that are under-represented in Canada, such as healthcare and technology.
The same principle applies even more strongly on the fixed income side. The global market is much larger – so there are many options to diversify. Global diversification can provide important sources of returns and protect your portfolio during cyclical downturns.
1Source: Bloomberg, as of May 31, 2024. Percent of world market capitalization of listed domestic companies.
-
2.6%
-
46.9%
-
7.8%
-
5.5%
-
4.4%
-
4.0%
-
2.9%
-
2.8%
-
2.1%
-
1.8%
-
1.5%
-
0.7%
Source: Bloomberg, as of May 2024.
This graphic illustrates the percent of world market capitalization of listed domestic companies.
Inside RBC Global Portfolios
Bringing you the world in one sophisticated package
- Active management: We actively monitor and rebalance your Portfolio to keep it well positioned as markets fluctuate.
- Underlying fund selection: Each RBC Global Portfolio is built using a blend of RBC, PH&N, BlueBay and RBC iShares solutions. We make sure that these underlying funds meet our selection criteria and that they are fulfilling their purpose within your Portfolio.
- Tactical asset allocation: The asset mix of your portfolio is tactically adjusted to either reduce risk or earn potentially higher returns as economic conditions and financial markets change.
- RBC Investment Policy Committee (IPC): Develops the tactical asset mix strategies in your Portfolio.
- RBC GAM Investment Strategy Committee (RISC): Led by the Chief Investment Officer and including our senior investment professionals, RISC develops economic and market forecasts.
What type of world-wise investor are you?
You can choose from 5 options, designed to fit your investing preferences and personal situation. Each solution holds a specially selected mix of mutual funds and exchange-traded funds. As the exposure to equities in the portfolio increases, so too does the level of risk – along with the potential for higher returns.
Many options, one goal
To balance growing your investments with strong risk management in global markets, each RBC Global Portfolio is built using a blend of RBC Funds, PH&N Funds, BlueBay Funds and RBC iShares® ETFs.
RBC Portfolio Solutions Insights – Inside the mind of an investor
The human brain uses shortcuts and patterns to process information and make decisions quickly. This can be effective when learning a new language, picking up a new skill or making dinner plans. But it can lead to behavioural biases that can cause us to think and act in curious ways. Particularly when it comes to investing.
To learn more about RBC Global Portfolios , speak to an advisor.