RBC Global drops U.S. large-cap core and value equity team

RBC Global Asset Management (U.S.) is terminating its Boston-based active U.S. large-cap core and value equity team, which managed $400 million for U.S. institutional clients and $2.6 billion for Canadian retail investors, said Michael Lee, RBC's U.S. chief investment officer.

The four-person Boston team, led by Stuart A. (Sam) Lippe, senior portfolio manager, will be terminated by Feb. 28, Mr. Lee said.

“U.S. large cap is not an area of focus for us with institutional distribution,” Mr. Lee said. “We reached out to our clients in November and sent a note saying we were terminating the team but keeping them until at least the end of January.”

The assets will be consolidated with a Toronto-based Canadian equity team, which will now focus on North American equities, Mr. Lee said.

However, Mr. Lee said he expects all institutional clients with RBC's U.S. large-cap core or value equity strategy will move their assets to other managers “or with other strategies with us.”

Doug Raymond and Stuart Kedwell, senior vice presidents and co-heads of Canadian equities, will oversee the combined North American equity team.

“This doesn't impact our other U.S. teams in small-cap value and growth and midcap value and growth,” Mr. Lee said.

In November, Miami Beach (Fla.) Firefighters' & Police Officers' Pension Plan replaced RBC's active mandate with a passive domestic large-cap value equity strategy managed by RhumbLine Advisers. According to minutes from the $787 million pension fund's board meeting, the move was made because “RBC will be closing the strategy in January 2017.”