RBC Canadian Equity Income Fund

Printed on January 27, 2015
RBC Canadian Equity Income Fund
Fund Category
Canadian Dividend and Income Equity
No. of Funds in Category
308
Morningstar Rating™
QQQQQ
Investment Objective
Portfolio Analysis as of December 31, 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
5.9
Fixed Income
0.0
Canadian Equity
85.6
US Equity
7.4
International Equity 0.7
Other
0.4
Fund Details
Series
Load Structure
Currency
Fund Code
D
No Load
CAD
RBF1018
Income Distribution
Monthly
Capital Gains Distribution Annually
Monthly Distribution (¢/unit) 9.10
Current Payout Rate (%)* 4.50
*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
Web Site
Equity Style
Equity Statistics
P/B Ratio
P/E Ratio
1.8
16.2
Avg. Mkt Cap. $Bil
15.4
Small
July 2007
4,177.0
28.58
1.21
S&P/TSX Capped
Composite Total Return
Index
Large Mid
Inception Date
Total Fund Assets $Mil
Series D NAV $
Series D MER %
Benchmark
Value Blend Growth
Global Equity Sectors
% Equity
Financials
Energy
Industrials
Utilities
Telecommunication Services
Materials
Consumer Discretionary
Consumer Staples
Health Care
Information Technology
Unclassified
36.4
29.0
9.3
7.5
5.2
4.6
3.8
3.0
0.9
0.3
0.0
Top 25 Holdings
% Assets
Royal Bank Of Canada
Bank of Nova Scotia
Manulife Financial Corp
Suncor Energy Inc
Enbridge Inc
4.7
3.8
3.6
3.6
3.5
Toronto-Dominion Bank
TransCanada Corp
Canadian Natural Resources Ltd
Brookfield Property Partners LP
CIBC
2.8
2.7
2.6
2.4
2.0
Brookfield Asset Management Inc Class A
BCE Inc
TELUS Corp
Potash Corp of Saskatchewan Inc
Bank of Montreal
1.8
1.6
1.6
1.5
1.5
Magna International Inc Class A
Sun Life Financial Inc
Pembina Pipeline Corp
Brookfield Infrastructure Partners LP
Brookfield Renewable Energy Partners LP
1.4
1.3
1.3
1.2
1.2
Veresen Inc
AltaGas Ltd
Russel Metals Inc Class A
Encana Corp
Emera Inc
1.1
1.1
1.1
1.0
1.0
Total % of Top 25 Holdings
Total Number of Stock Holdings
Total Number of Bond Holdings
Total Number of Other Holdings
Total Number of Holdings
51.5
106
0
3
109
Performance Analysis as of December 31, 2014
30
26
Notes
22
Fund’s investment objective and name changed July 1,
2009.
18
Growth of $10,000
Series D
$26,620
14
10
6
75
50
Calendar Returns %
Series D
25
0
-25
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
—
—
—
—
—
—
—
—
-18.1
1st
60.8
1st
25.0
1st
11.3
1st
9.5
2nd
17.5
2nd
2014
10.6
2nd
Fund
Quartile
1 Mth
3 Mth
6 Mth
1 Yr
3 Yr
5 Yr
10 Yr
Since Incep. Trailing Return %
-1.1
3rd
499
-1.9
3rd
488
-2.0
3rd
481
10.6
2nd
442
12.5
2nd
308
14.6
1st
228
—
—
69
13.6
—
—
Fund
Quartile
No. of Funds in Category
©2015. Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. These pages are not complete without the disclosure
page.
Printed on January 27, 2015
RBC Canadian Equity Income Fund
Management Overview
Manager Bios
Performance Analysis Cont'd as of December 31, 2014
Jennifer McClelland
Distributions ($)/Unit
RBC Global Asset Management Inc.
Total Distributions
Interest
Dividends
Capital Gains
Return Of Capital
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 %
2014*
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2.25
—
0.42
1.83
—
1.35
—
0.39
0.96
—
1.09
—
0.11
0.66
0.31
1.55
0.13
0.15
1.27
—
1.92
0.08
0.31
1.53
—
1.41
0.54
0.13
0.74
—
0.96
0.87
0.09
—
—
0.48
0.33
0.04
—
0.11
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Ended
1 Yr
Ended
2-2010
2-2012
Best
73.7
2-2009
2-2014
Worst
-22.6
Average
16.9
No. of Periods
78
Pct. Positive
84.6
* Distributions are characterized into income type at year-end.
3 Yr
Ended
5 Yr
Ended
10 Yr
35.2
11.1
18.1
54
100.0
2-2014
6-2013
25.2
12.8
17.9
30
100.0
—
—
—
—
—
—
—
Quarterly Commentary as at December 31, 2014
Utilities had a positive impact on performance, but
were offset by positions in Energy, Consumer
Discretionary and Consumer Staples.
In Utilities, an allocation to both Brookfield
Infrastructure Partners and an overweight
exposure to Fortis had a positive impact on
returns. Following the approval of its acquisition of
UNS Energy this summer, Fortis highlighted
attractive organic rate base growth of 7% over the
next four years at its Investor Day in October. This
should continue to support future dividend
increases, as witnessed in December when the
company raised its dividend by 6.25%.
The Fund had an overweight position in the Energy
sector and this negatively impacted performance.
The sector posted a negative return during the
quarter as these stocks were pressured from
falling commodity prices and the Fund’s
overweight allocations to Encana and Canadian
Natural Resources detracted from returns.
Underweight positions in the Consumer
Discretionary and Consumer Staples sectors
hindered performance as the two sectors
outperformed the broader market during the
quarter. An underweight position in Alimentation
Couche-Tard and a lack of exposure to both Metro
and Dollarama were the main detractors from
returns.
Recent Canadian economic data has been mixed,
with the impact of falling crude oil largely muted
by a substantially weaker Canadian dollar. Oil
prices are difficult to forecast in the short run, but
it now appears that prices will be lower on
average and more volatile than in the recent past.
While the Bank of Canada cut interest rates in
early 2015, many investors expect the U.S. Federal
Reserve to raise the fed-funds rate as early as the
middle of this year amid a strengthening economy
and signs of accelerating wages.
©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 January 27, 2015
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 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 A 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.