RBC Monthly Income Fund

Printed on February 20, 2015
RBC Monthly Income Fund
No. of Funds in Category
425
Fund Category
Canadian Neutral Balanced
Morningstar Rating™
QQQ
Investment Objective
Portfolio Analysis as of January 31, 2015
To provide relatively tax efficient monthly distributions
consisting of dividend income, interest income and
capital gains, as well as the potential for modest capital
growth. The fund aims to provide as high a regular
monthly income as possible.
Asset Mix
% Assets
Cash
2.9
Fixed Income
48.9
Canadian Equity
43.7
US Equity
4.2
International Equity 0.2
Other
0.1
Fund Details
Load Structure
Currency
Fund Code
A
Adv
Adv
F
No Load
Front End
Low Load
No Load
CAD
CAD
CAD
CAD
RBF448
RBF763
RBF115
RBF602
August 1997
9,594.3
14.46
1.20
55% FTSE TMX Canada
Mid Term Overall Index
40% S&P/TSX Capped
Composite Total Return
Index
5% FTSE TMX Canada 60
Day T-Bill Index
Income Distribution
Monthly
Capital Gains Distribution Annually
Monthly Distribution (¢/unit) 4.25
Current Payout Rate (%)* 3.53
*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.
Statistics
%
P/B Ratio
P/E Ratio
1.7
16.1
Avg. Mkt Cap. $B
25.3
Small
Inception Date
Total Fund Assets $Mil
Series A NAV $
Series A MER %
Benchmark
Equity Style
Large Mid
Series
Top 10 Holdings
% Assets
Royal Bank Of Canada
Toronto-Dominion Bank
Bank of Nova Scotia
Enbridge Inc
Manulife Financial Corp
3.6
3.0
2.8
2.0
1.7
Province Of Ontario 3.15% 02-06-2022
Suncor Energy Inc
TransCanada Corp
CIBC
Ontario Prov Cda 6.5% 08-03-2029
1.6
1.6
1.5
1.4
1.4
Total % of Top 10 Holdings
Total Number of Stock Holdings
Total Number of Bond Holdings
Total Number of Other Holdings
Total Number of Holdings
20.6
96
253
11
360
Value Blend Growth
Top 5 Sectors
% Equity
Financials
Energy
Industrials
Materials
Utilities
39.0
25.3
8.7
8.0
6.0
% Assets
Income-Generating Asset-Class
48.0
30.4
17.7
3.2
0.6
0.0
Common Shares
Government Bonds
Investment-Grade Corporate Bonds
Other
High Yield Bonds
Preferred Shares
Performance Analysis as of January 31, 2015
20
Sales Status
Min. Investment $
Subsequent Investment $
Open
500
25
Management Company
RBC Global Asset
Management Inc.
www.rbcgam.com
Web Site
18
16
Growth of $10,000
Series A
$18,708
14
12
10
8
16
Notes
8
No longer available for investment through registered
plans and TFSAs.
Calendar Returns %
Series A
0
-8
-16
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
YTD
15.1
1st
8.0
3rd
3.2
1st
-11.3
1st
15.4
3rd
9.9
2nd
2.9
1st
6.8
2nd
5.9
4th
9.0
2nd
2.1
3rd
Fund
Quartile
1 Mth
3 Mth
6 Mth
1 Yr
3 Yr
5 Yr
10 Yr
Since Incep. Trailing Return %
2.1
3rd
622
3.1
3rd
613
2.8
3rd
602
10.1
2nd
582
7.3
4th
425
7.5
3rd
264
6.4
1st
107
7.4
—
—
Fund
Quartile
No. of Funds in Category
©2015. Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. These pages are not complete without the disclosure
page.
Printed on February 20, 2015
RBC Monthly Income Fund
Management Overview
Manager Bios
Performance Analysis Cont'd as of January 31, 2015
Jennifer McClelland
Distributions ($)/Unit
YTD*
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
RBC Global Asset Management Inc.
Total Distributions
Interest
Dividends
Capital Gains
Return Of Capital
0.04
0.04
—
—
—
0.51
0.15
0.19
—
0.17
0.56
0.14
0.20
0.22
—
0.51
0.15
0.17
0.19
—
0.57
—
0.17
0.18
0.22
0.57
0.30
0.15
—
0.11
0.57
0.43
0.14
—
—
0.57
0.41
0.16
—
—
1.14
0.39
0.17
0.58
—
0.77
0.38
0.15
0.24
—
0.53
0.37
0.16
—
—
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.
Suzanne Gaynor
RBC Global Asset Management Inc.
Suzanne Gaynor is Vice President and Senior Portfolio
Manager, Global Fixed Income and Currencies. She has
been in the investment industry since 1988.
Best/Worst Periods %
Ended
1 Yr
Ended
2-2001
3-2006
Best
25.7
2-2009
2-2009
Worst
-16.0
Average
7.4
No. of Periods
198
Pct. Positive
86.9
* Distributions are characterized into income type at year-end.
3 Yr
Ended
5 Yr
Ended
10 Yr
16.1
-2.9
7.8
174
97.1
2-2005
5-2012
13.3
3.1
7.8
150
100.0
2-2010
12-2014
9.3
6.2
7.7
90
100.0
Quarterly Commentary as at December 31, 2014
RBC Monthly Income Fund (Series A) gained 1.1%
in Q4 vs. 0.9% for its benchmark.
During Q4, longer maturity Canadian bonds broadly
outperformed their shorter maturity counterparts,
spurred by falling oil prices and an increasingly
subdued inflation outlook. The Fund’s overweight
position in provincial bonds, particularly longs was
the key driver of the relative outperformance.
The oil-reliant Canadian economy has begun to
show signs of slowing, and could decelerate more
after crude oil prices dropped the most in five
years towards year-end. Once the Canadian
economy shows signs of acceleration, we would
expect a gradual rise in interest rates.
Holdings in Utilities had a positive impact on
performance, but were offset by positions in
Consumer Staples, Telecommunication Services
and Energy.
In Utilities, an overweight exposure to Fortis and
Emera 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.
In Consumer Staples, an underweight position
weighed on returns as the sector outperformed the
broader market during Q4. A lack of exposure to
both Alimentation Couche-Tard and Metro were
the biggest detractors from performance.
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 February 20, 2015
RBC Monthly 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.