RBC Canadian Equity Income Fund

Printed on October 24, 2014
RBC Canadian Equity Income Fund
Fund Category
Canadian Dividend and Income Equity
No. of Funds in Category
284
Morningstar Rating™
QQQQQ
Investment Objective
Portfolio Analysis as of September 30, 2014
To provide a high level of monthly cash flow and
relatively tax efficient distributions consisting primarily
of returns of capital, capital gains and interest income
and to provide the potential for modest capital growth.
Asset Mix
% Assets
Cash
3.7
Fixed Income
0.3
Canadian Equity
84.5
US Equity
8.5
International Equity 1.8
Other
1.3
Fund Details
Load Structure
Currency
Fund Code
A
Adv
Adv
Adv
H
F
I
No Load
Deferred Sales
Front End
Low Load
No Load
No Load
No Load
CAD
CAD
CAD
CAD
CAD
CAD
CAD
RBF591
RBF856
RBF762
RBF111
RBF2591
RBF646
RBF8591
August 2006
4,222.1
28.43
2.09
S&P/TSX Capped
Composite Total Return
Index
Income Distribution
Monthly
Capital Gains Distribution Annually
Monthly Distribution (¢/unit) 9.00
Current Payout Rate (%)* 3.8
*Assuming 12 consecutive months at the monthly
distribution set out above. The estimate does not include
any year-end capital gains distributions paid in addition
to the regular monthly distribution nor should it be
confused with performance or rates of return.
Sales Status
Min. Investment $
Subsequent Investment $
Open
500
25
Management Company
RBC Global Asset
Management Inc.
www.rbcgam.com
Equity Statistics
P/B Ratio
P/E Ratio
1.9
16.6
Avg. Mkt Cap. $Bil
15.0
Small
Inception Date
Total Fund Assets $Mil
Series A NAV $
Series A MER %
Benchmark
Equity Style
Large Mid
Series
Value Blend Growth
Global Equity Sectors
% Equity
Financials
Energy
Industrials
Utilities
Materials
Telecommunication Services
Consumer Discretionary
Consumer Staples
Health Care
Information Technology
Unclassified
34.7
27.0
9.6
7.8
6.6
5.4
5.0
2.7
0.6
0.5
0.0
Top 25 Holdings
% Assets
Royal Bank Of Canada
Manulife Financial Corp
Bank of Nova Scotia
Enbridge Inc
Suncor Energy Inc
4.6
3.4
3.4
3.2
2.8
Canadian Natural Resources Ltd
Toronto-Dominion Bank
Brookfield Property Partners LP
Bank of Montreal
BHP Billiton PLC
2.7
2.3
2.2
2.0
1.8
TransCanada Corp
TELUS Corp
Encana Corp
CIBC
Sun Life Financial Inc
1.7
1.5
1.5
1.5
1.5
Brookfield Renewable Energy Partners LP
Potash Corp of Saskatchewan Inc
BCE Inc
AT&T Inc
Progressive Waste Solutions Ltd
1.4
1.4
1.4
1.3
1.3
Thomson Reuters Corp
Brookfield Asset Management Inc Class A
Russel Metals Inc Class A
Newalta Corp
Emera Inc
1.3
1.2
1.2
1.2
1.2
Total % of Top 25 Holdings
Total Number of Stock Holdings
Total Number of Bond Holdings
Total Number of Other Holdings
Total Number of Holdings
49.0
112
1
8
121
Performance Analysis as of September 30, 2014
30
26
22
Growth of $10,000
Series A
$26,821
18
Web Site
14
10
6
Notes
75
Fund’s investment objective and name changed July 1,
2009. Minimum investment for Series I and Series H
units of the Fund is $200,000. Minimum additional
investment is $5,000.
50
Calendar Returns %
Series A
25
0
-25
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
YTD
—
—
—
—
—
—
9.5
1st
-18.8
1st
59.5
1st
24.0
1st
10.3
1st
8.5
2nd
16.5
3rd
12.0
1st
Fund
Quartile
1 Mth
3 Mth
6 Mth
1 Yr
3 Yr
5 Yr
10 Yr
Since Incep. Trailing Return %
-3.3
3rd
486
-0.3
3rd
481
5.8
2nd
467
19.8
2nd
408
16.1
1st
284
16.4
1st
225
—
—
65
12.9
—
—
Fund
Quartile
No. of Funds in Category
©2014. Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. These pages are not complete without the disclosure
page.
Printed on October 24, 2014
RBC Canadian Equity Income Fund
Management Overview
Manager Bios
Performance Analysis Cont'd as of September 30, 2014
Jennifer McClelland
Distributions ($)/Unit
YTD*
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
RBC Global Asset Management Inc.
Total Distributions
Interest
Dividends
Capital Gains
Return Of Capital
0.81
0.81
—
—
—
1.34
—
0.39
0.95
—
1.08
—
0.11
0.66
0.31
1.53
0.13
0.15
1.24
—
1.89
0.07
0.31
1.51
—
1.43
0.54
0.13
0.76
—
0.96
0.87
0.09
—
—
0.96
0.67
0.08
—
0.21
0.32
0.30
0.02
—
—
—
—
—
—
—
—
—
—
—
—
Jennifer McClelland is Vice President and Senior
Portfolio Manager, Canadian Equities. Jennifer began
her investment career in 1993. She is a member of the
Canadian Equity Committee and is responsible for
income-oriented Canadian equity mandates. Jennifer has
a Bachelor Degree in Economics from the University of
Western Ontario and is a CFA charterholder.
Brahm Spilfogel
RBC Global Asset Management Inc.
Brahm Spilfogel is Vice President and Senior Portfolio
Manager, Canadian and Global Equities. He has been in
the investment industry since 1991.
Best/Worst Periods %
Ended
1 Yr
Ended
2-2010
2-2012
Best
72.3
2-2009
8-2009
Worst
-23.2
Average
15.1
No. of Periods
86
Pct. Positive
86.0
* Distributions are characterized into income type at year-end.
3 Yr
Ended
5 Yr
Ended
10 Yr
34.1
5.3
16.2
62
100.0
2-2014
9-2011
24.1
11.7
16.1
38
100.0
—
—
—
—
—
—
—
Quarterly Commentary as at September 30, 2014
RBC Canadian Equity Income Fund (Series A)
declined 0.3% in Q3 compared to -0.6% for its
benchmark.
companies outperformed the broader index due to
volume improvements and the potential for further
operational efficiency.
Holdings in the Consumer Discretionary and
Utilities sectors had a positive impact on
performance, but were offset by positions in the
Industrials and Energy sectors.
The Fund had an overweight position in the Energy
and this negatively impacted performance as the
sector posted a negative return during the quarter
as these stocks were pressured from falling crude
oil prices. Overweight positions in Canadian
Energy Services and Trinidad Drilling Company
detracted from returns.
Security selection was the main driver in the
Consumer Discretionary sector, led by an
overweight position in Tim Hortons, whose stock
was propelled higher after the company agreed to
be taken over by Burger King.
In the Utilities sector, an overweight allocation to
both Brookfield Renewable Energy Partners and
Algonquin Power & Utilities had a positive impact
on returns as these two companies outperformed
the broader index during the quarter.
Within the Industrials sector, a lack of exposure to
Canadian National Railway and Canadian Pacific
Railway dragged on performance. Both of these
Strong Canadian equity-market returns should be
met with some caution, in the view of the portfolio
manager, as relatively slow labour-market growth
and ever-rising house prices are causes for
concern. However, prospects for exports should
improve as the U.S. economy strengthens, and the
U.S. Federal Reserve has indicated that it will
complete its bond-buying program soon and that it
will begin raising short-term interest rates next
year. In this mixed environment, the Bank of
Canada appears likely to hold interest rates at
their current level for the foreseeable future.
©2014. 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 October 24, 2014
RBC Canadian Equity Income 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 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 funds are not guaranteed or covered
by the Canadian 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.
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 the half-year
period, January 1 to June 30, 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 A units of the Fund as of September
30, 2014. Morningstar ratings are overall
ratings reflecting risk adjusted performance
as of September 30, 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. 2014
©2014. 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.