10 Questions with Sarah Riopelle

Ruth Saldanha, a senior editor with Morningstar based in Canada, interviewed Riopelle in February.

1. What are some of the key macro risks for investors today? Some [risks] to keep an eye on in 2019 are protectionism, European politics (i.e., Brexit), and the potential for slowing global growth.

2. How do you play such risks? 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.

3. What is your outlook for fixed income? 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.

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.

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

7. Where did you go on your last vacation? 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!

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? 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.

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.

This article originally appeared in the Summer 2019 issue of Morningstar magazine. To learn more about Morningstar magazine, please visit our corporate website.