Investment process

Whatever the markets are doing, you can rest assured that your clients’ investments are in good hands.

Our rigorous, independent and dynamic investment management process takes away some of the regulatory and compliance burden, freeing up your time to concentrate on your clients.

The asset allocation committee selects an optimal blend of investments to generate long-term returns for a range of risk profiles

Direct equity selection process

We invest a considerable amount of time and expertise when researching companies for our direct equity buy list. Our process is long term, high quality and conviction based. Our equity analysts carry out cutting-edge analysis of each opportunity, seeking the best combination of the following three factors:

External positioning

Simple, resilient and adaptable business models

Industries with attractive characteristics

Durable competitive strengths that give rise to attractive financial characteristics

Strong cash generation

Favourable tailwinds providing a long runway for growth and reinvestment
Environmental, social and governance analysis is considered within all three factors
Internal qualities

Able, honest and humble management teams

Shareholder alignment

A corporate culture that reinforces the competitive positioning

Creative organisations with a growth mindset

Corporate individuality
Environmental, social and governance analysis is considered within all three factors
Analytical assessment

A valuation that is discounting a realistic outcome

Compelling reasons for ownership

Analyse ability: clear understanding of variables that drive outcome

Comfort with risks
Environmental, social and governance analysis is considered within all three factors

As per the below graphic, we then use a three-stage transparent process that assigns equities into clear conviction baskets:

A well diversified high conviction buy list of around 30 global equities that meet the RBC Brewin Dolphin equity selection criteria. An integral component of the selection process is the demonstration of corporate individuality; evidence that a company is in a class of its own in terms of its organisational effectiveness, strategic coherence and growth orientation.

A published list of equities that have passed the first stage of due diligence but require additional comfort and/or further analysis to become an individual equity.

An unpublished working list of equities utilised by the research team that could potentially meet the RBC Brewin Dolphin equity selection rationale.

Fund selection process

We have a separate team with the Research department that concentrates on analysing and monitoring funds. When identifying funds for our buy list, we look for a balanced blend of characteristics, including:

Consistent and well-defined investment philosophy at the core
Solid fund manager track record
Strong alignment of manager/investor interests
High quality team
Stable and investment-driven organisation
Reasonable service fees
Appropriate fund size

As per the below graphic, we then use a three-stage transparent process that assigns funds into clear conviction baskets:

From our list of buy funds we construct optimal portfolios, Diversified Fund Strategies (DFS), with the aim of generating reasonable consistent outperformance over a cycle. These portfolios blend some of our preferred managers that are expected to be complimentary to one another.

A ‘menu’ of funds and trusts in each sector covering a range of different styles (value, quality and growth) and strategies (such as socially responsible investments, defined market capitalisation, sector specialism, income focus), which the team believe are best in class.

An unpublished working list of funds actively followed by the research team that could potentially meet the RBC Brewin Dolphin fund selection criteria.

For all funds we cover, we address environmental, social and governance (ESG) issues in due diligence questionnaires and engage with managers on material ESG issues. We have a designated Socially Responsible Investing (SRI) recommendation list for funds that aim to deliver attractive investment returns while contributing positively to global environmental and social challenges.

Our services

We offer a range of services to help you meet the needs of each client.

Managed Portfolio Service (MPS)

Since 2008, more than 1,000 advice firms have signed up to use MPS, attracted by strong investment performance and a constant focus on client satisfaction.