Morningstar - Summer 2019 - 104

Ten Questions

Sarah Riopelle of RBC on covering
all the bases.
Ruth Saldanha, a senior editor with Morningstar
based in Canada, interviewed Riopelle in February.

Some [risks] to keep an eye on in 2019 are
protectionism, European politics (i.e., Brexit), and
the potential for slowing global growth.

I work closely with our chief investment officer.
We were recently in Hong Kong to visit our
Asian equity team, and I made a day trip to Macao.
With its variety of traditional Portuguese and
Chinese architecture mixed with modern buildings
and casinos, Macao was an amazing experience.

2. How do you play such risks?

7. Where did you go on your last vacation?

While it's important to be mindful of these risks,
there are also potential opportunities. Although
the global economy is slowing, it is still
growing near its fastest pace in the post-crisis era.
We have a slight bias to risk assets, but to
a lesser degree than at earlier points in the cycle.

Disney World for the holidays. It wasn't my first
choice, but my husband and kids are big
fans. Vacations are an opportunity for my family
to connect and have fun away from the usual
demands, so if that means another trip to Disney
World, then so be it!

1. What are some of the key macro risks for

investors today?

3. What is your outlook for fixed income?

Sarah Riopelle is a member of the RBC
Global Asset Management investment
strategy and investment policy committees
and manager of the suite of multi-asset
RBC Portfolio Solutions, many of which
are Morningstar Quantitative Rating Medalists.
Before joining RBC GAM in 2003,
she worked at RBC Capital Markets in the
quantitative research and investment
strategy groups. Riopelle began her career
in the investment industry in 1996 after
graduating from the University of Ottawa
with a bachelor of commerce degree.

104

Morningstar Summer 2019

6. What's the most interesting place your investment
travels have taken you?

Our models continue to suggest the long-term
direction for yields is higher, which could act as a
headwind to returns for potentially many years.
In the near term, slowing global growth may limit
the increase in yields, particularly if central
banks are no longer actively raising interest rates.
Given that yields are at historically low levels,
we are not expecting particularly attractive returns
from sovereign fixed income over the year ahead,
so we are underweight bonds.
4. Do you believe there could be a recession this year?

In our base-case scenario, we don't expect
the U.S. economy to enter recession this year, but
the business cycle is in its later stages,
and the risk of a negative surprise is rising.

8. What's the best advice you've received?

"There is no such thing as work/life balance. It's
about making choices." Trying to achieve a
perfect balance can cause unnecessary stress and
disappointment. Some days, work has to
be the priority, and other days I focus on family.
9. What do you enjoy doing when you aren't investing?

When I'm not working, I spend all of my time
with my family. That is getting harder these days
as the kids are teenagers and have their
own things going on. My daughter is a competitive
dancer, so I hang out at dance competitions.
My husband is an avid golfer, so he is trying to
convince me to join him on the golf course ... that
is still a work in progress.
10. What book are you recommending these days?

5. How has your strategy evolved over your career?

I began working in quantitative analysis
and macro strategy research early in my career
and learned how important it is to monitor
events in all areas-from asset classes to regions
to individual markets and sectors. This
helped me recognize the benefits of taking a
diversified approach.

My boss recently gave me a copy of Grit: The Power
of Passion and Perseverance by Angela Duckworth.
The author discusses how talent is hardly a
guarantee of success. Identifying your passions
and following through on your commitments can
be even more crucial.
Morningstar - Summer 2019

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