PH&N High Yield Bond Fund - D

Transcription

PH&N High Yield Bond Fund - D
Printed on February 18, 2015
PH&N High Yield Bond Fund
No. of Funds in Category
201
Fund Category
High Yield Fixed Income
Morningstar Rating™
QQQQ
Investment Objective
Portfolio Analysis as of January 31, 2015
To provide a high level of income and the opportunity for
capital appreciation by investing primarily in a welldiversified portfolio of fixed income securities issued by
Canadian and/or foreign corporations and governments.
Asset Mix
% Assets
Cash
10.5
Fixed Income
89.5
Canadian Equity
0.0
US Equity
0.0
International Equity 0.0
Other
0.0
Fund Details
Series
Load Structure
Currency
Fund Code
D
No Load
CAD
RBF1280
Inception Date
Total Fund Assets $Mil
Series D NAV $
Series D MER %
Benchmark
July 2000
3,568.4
11.93
0.87
FTSE TMX Canada
Universe Bond Index
Income Distribution
Capital Gains Distribution
Quarterly
Annually
Sales Status
Min. Investment $
Subsequent Investment $
Management Company
Web Site
Partially Reopen to
existing unit holder
500
25
RBC Global Asset
Management Inc.
www.rbcgam.com
Fixed Income Breakdown
% Fixed Income
Government Bonds
Corporate Bonds
Other Bonds
Mortgage Backed Securities
ST Investments (Cash & Other)
Asset Backed Securities
Bond Rating
%
Cash / Cash Equiv.
AAA
AA
A
BBB
Below BBB
Mortgages
NR/NA
0.0
95.1
0.0
0.0
4.9
0.0
% Assets
Quebecor Media 144A 6.625% 15-01-2023
Reynolds Grp Issuer 7.125% 15-04-2019
CCO Hldgs LLC 7% 15-01-2019
Baytex Engy 6.625% 19-07-2022
Trilogy Engy 144A 7.25% 13-12-2019
5.5
4.4
4.3
3.2
2.8
Everest Acq Llc/Finance 6.875% 01-05-2019
Numericable Grp 144A 4.875% 15-05-2019
Quebecor Media 7.375% 15-01-2021
Howard Hughes 144A 6.875% 01-10-2021
Western Engy Srvcs 7.875% 30-01-2019
2.7
2.3
2.3
2.2
2.2
Total % of Top 10 Holdings
Total Number of Stock Holdings
Total Number of Bond Holdings
Total Number of Other Holdings
Total Number of Holdings
31.8
0
80
3
83
%
Term to Maturity
4.9
0.0
0.0
0.0
0.5
93.6
0.0
1.0
Top 10 Holdings
5.4
37.4
55.4
1.8
Under 1 Yr
1 - 5 Yrs
5 - 10 Yrs
Over 10 Yrs
5.5
Avg. Term to
maturity (Yrs)
Duration (Yrs)
Yield to Maturity
2.8
5.6
Notes
Geographic Allocations
Effective November 26, 2014, units of this fund will not
be available for purchases by new investors. Existing
investors who hold units of the fund can continue to
make additional investments into the fund.
Canada
United States
International (ex-Emerging Markets)
Emerging Markets
Fund's investment objective changed November 28,
2011.
Performance Analysis as of January 31, 2015
% Assets
49.5
50.5
0.0
0.0
20
18
16
Growth of $10,000
Series D
$19,835
14
12
10
8
20
15
Calendar Returns %
Series D
10
5
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
YTD
5.4
1st
8.1
2nd
3.8
1st
1.3
1st
17.3
4th
10.6
2nd
4.9
1st
10.6
3rd
5.1
2nd
4.0
2nd
0.7
3rd
Fund
Quartile
1 Mth
3 Mth
6 Mth
1 Yr
3 Yr
5 Yr
10 Yr
Since Incep. Trailing Return %
0.7
3rd
461
-0.6
3rd
453
0.8
2nd
447
3.9
3rd
389
6.1
2nd
201
6.6
2nd
94
7.0
1st
42
8.2
—
—
Fund
Quartile
No. of Funds in Category
©2015. Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. These pages are not complete without the disclosure
page.
Printed on February 18, 2015
PH&N High Yield Bond Fund
Management Overview
Manager Bios
Performance Analysis Cont'd as of January 31, 2015
Hanif Mamdani
Distributions ($)/Unit
Phillips, Hager & North Investment Management
Total Distributions
Interest
Dividends
Capital Gains
Return Of Capital
Hanif is Head of Alternative Investments and a member
of the Asset Mix Committee at RBC Global Asset
Management Inc. Hanif has expertise in corporate
finance, options valuation, credit analysis and risk
management. He is accountable for the portfolio strategy
for all corporate bonds and for the investment strategy
and performance of the PH&N High Yield Bond Fund and
a multi-strategy hedge fund.
Best/Worst Periods %
YTD*
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
—
—
—
—
—
0.69
0.69
—
—
—
0.65
0.65
—
—
—
0.79
0.64
—
0.14
—
0.68
0.68
—
—
—
0.96
0.55
—
0.40
—
0.55
0.50
—
0.05
—
0.65
0.56
—
0.10
—
1.01
0.63
—
0.38
—
0.67
0.60
—
0.06
—
0.78
0.63
—
0.15
—
Ended
1 Yr
Ended
9-2003
7-2005
Best
25.0
10-2008
Worst
-3.7 10-2008
Average
8.1
No. of Periods
163
Pct. Positive
96.3
* Distributions are characterized into income type at year-end.
3 Yr
Ended
5 Yr
Ended
10 Yr
14.4
2.7
8.4
139
100.0
10-2013
3-2009
10.7
4.5
8.2
115
100.0
9-2012
1-2015
9.5
7.0
8.2
55
100.0
Quarterly Commentary as at December 31, 2014
The high-yield bond market experienced a
significant sell-off in the fourth quarter due in part
to the sharp decline in oil prices and its
corresponding impact on energy bonds in the high
yield universe. Price declines of 15%-25% for
more speculative oil and gas bonds were common,
leading to a contagion effect across many
unrelated industry groups. The Fund’s defensive
portfolio bias was helpful during this sell-off,
although some of our high quality Canadian energy
bonds suffered disproportionate mark-downs. This
volatility, while jarring, has created some very
interesting opportunities for 2015.
Currently, the broad high-yield bond index yields
approximately 6.75%, or nearly 200 basis points
higher than mid-year levels – a vivid illustration of
the sharpness of the recent sell-off. In our view, as
long as economic growth remains solid, corporate
profits remain steady and default rates remain
well-behaved, “high quality high yield” can deliver
solid performance relative to other fixed income
alternatives thanks to the more appealing
valuation backdrop.
Despite our optimism for high yield bonds, we
understand that we may be in the latter innings of
the credit cycle, and the prospect of a Fed interest
rate hike in 2015 presents potential for further
volatility. Accordingly, we will maintain a strong
bias to lower-duration, higher-quality issuers while
being fairly opportunistic in certain inefficient and
dislocated sectors, like best-in-class Canadian
energy names. In our experience, it is this
opportunism in the face of rampant fear that has
allowed the Fund to generate returns in excess of
its running yield.
©2015. Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. These pages are not complete without the disclosure
page.
Printed on February 18, 2015
PH&N High Yield Bond Fund
Disclosure
RBC Funds, PH&N Funds and RBC Corporate
Class Funds are offered by RBC Global Asset
Management Inc. and distributed through
authorized dealers.
Commissions, trailing commissions,
management fees and expenses all may be
associated with mutual fund investments.
Please read the prospectus or the Fund Facts
document of the mutual fund before
investing. Except as otherwise noted, the
indicated rates of return are the historical
annual compounded total returns including
changes in unit value and reinvestment of all
distributions and do not take into account
sales, redemption, distribution or optional
charges or income taxes payable by any
unitholder that would have reduced returns.
Mutual fund securities are not guaranteed or
covered by the Canada Deposit Insurance
Corporation or by any other government
deposit insurer.
For money market funds, there can be no
assurances that the fund will be able to
maintain its net asset value per unit at a
constant amount or that the full amount of
your investment in the fund will be returned
to you. The value of mutual funds change
frequently and past performance may not be
repeated.
Phillips, Hager & North Investment
Management (PH&N IM) is a division of RBC
Global Asset Management Inc. (RBC GAM).
RBC GAM is the fund manager and the
principal portfolio adviser of PH&N Funds and
BonaVista Funds. The principal distributor of
PH&N Funds and BonaVista Funds is Phillips,
Hager & North Investment Funds Ltd.
(PH&NIF), which uses the trade name PH&N
Investment Services. RBC GAM is an indirect,
wholly-owned subsidiary of Royal Bank of
Canada.
This document has been compiled by RBC
Global Asset Management Inc. (RBC GAM)
from sources believed to be reliable, but no
representations or warranty, express or
implied, are made by RBC GAM, its affiliates
or any other person as to its accuracy,
completeness or correctness. All opinions
and estimates constitute RBC GAM's
judgment as of the date of this document, are
subject to change without notice and are
provided in good faith but without legal
responsibility. The Top Ten/25 Holdings may
change due to ongoing portfolio transactions
within the fund. The prospectus, Fund Facts
document, and other information about the
underlying investment funds are available at
www.sedar.com.
MER (%) for RBC Funds and PH&N Funds is
based on actual expenses for full-year period,
January 1 to December 31, 2014, expressed
on an annualized basis.
MER (%) for RBC Corporate Class Funds is
based on actual expenses for the half-year
period April 1, 2014 to September 30, 2014,
expressed on an annualized basis.
Graphs are only used to illustrate the effects
of the compound growth rate and do not
reflect future values of any fund or returns on
investment of any fund.
The fund profile is provided for informational
purposes only. Particular investments and/or
trading strategies should be evaluated
relative to each individual’s investment
objectives. The information contained in the
fund profile is not, and should not be
construed as, investment or tax advice. You
should not act or rely on the information
contained in the fund profile without seeking
the advice of an appropriate professional
advisor.
Quartile rankings are determined by
Morningstar Research Inc., an independent
research firm, based on categories
maintained by the Canadian Investment
Funds Standards Committee (CIFSC). Quartile
rankings are comparisons of the performance
of a fund to other funds in a particular
category and are subject to change monthly.
The quartiles divide the data into four equal
segments expressed in terms of rank (1, 2, 3
or 4). This is the Morningstar quartile ranking
of Series C units of the Fund as of December
31, 2014. Morningstar ratings are overall
ratings reflecting risk adjusted performance
as of December 31, 2014. The ratings are
subject to change every month. The ratings
are calculated for funds with a minimum of 3
years of performance, calculated from the
funds' 1 and 3 year average annual returns
measured against a 91-day Treasury Bill
return with appropriate fee adjustments. The
top 10% of the funds in a category receive 5
stars (high); if the funds fall in the next
22.5%,they receive 4 stars (above average); a
place in the middle 35% earns a fund 3 stars
(neutral or average); those in the next 22.5%
receive 2 stars (below average); and the
lowest 10% get 1 star (low). Ratings are just
one factor to consider when investing. For
more information, please see www.
morningstar.ca.
® / ™ Trademark(s) of Royal Bank of Canada.
Used under licence. © RBC Global Asset
Management Inc. 2015
©2015. Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. These pages are not complete without the disclosure
page.