Download Report

RBC Managed Portfolios
Balanced investment profile
MARCH 31, 2015
Objective
Commentary
This portfolio focuses on providing
long-term capital growth with secondary
focus on modest income.
This quarter, the Balanced profile benefited from solid gains in both bonds and equities. In
particular, the U.S. and international component of the profile’s equity holdings was boosted
by a sharply weaker Canadian dollar. The loonie continued to fall as the Bank of Canada cut
the overnight rate by a quarter-percent and the economy showed clear signs of slowing as
a result of the impact of sharply lower oil prices. Uncertainty over the strength of the U.S.
economy is likely to keep the U.S. Federal Reserve on the sidelines until later in 2015. The
European Central Bank’s and the Bank of Japan’s aggressive monetary stimulus measures are
expected to keep a lid on interest rates while spurring economic growth. Emerging markets
appeared to have weathered the worst of the sharp rise of the U.S. dollar, with rise
in developed nation demand brightening the outlook for these countries.
Fund Details
Profile inception date
Net assets
February 2000
$2,837.1MM
Fee Tiers*
First $150,000
1.8%
Next $100,000
1.7%
Over $250,000
1.0%
Based on our outlook, the asset mix of the Balanced profile continues to be underweight fixed
income and overweight equities relative to our strategic benchmark weightings.
Minimum fee of $1,250
Distribution frequency
Capital gains
Minimum investment
monthly
annually
$100,000
Benchmark
FTSE TMX Canada
30 Day T-Bill Index
2.0%
FTSE TMX Canada Universe
Bond Index
43.0%
Total fixed income and cash
45.0%
S&P/TSX Composite TR Index
20.0%
MSCI EAFE Net Index, (C$)**
12.0%
Total equity
Total
4.0%
55.0%
March 31, 2015
Growth of $100,000
175
19.0%
S&P 500 TR Index, (C$)**
MSCI EM Net Index, (C$)
Performance Analysis
$159,613
150
‘000s
Income
125
100
100.0%
75
* O
perating expenses and applicable taxes are not
included in the fee schedule below.
50
2005
** 25% hedged to C$.
2006
2007
2008
2009
2010
2011
2012
2013
2014
Calendar Returns† (%)
20
Sector Mix (% equities)
February 28, 2015
10
Financials
25.2
0
Consumer Discretionary
13.6
-10
Industrials
12.3
Information Technology
10.9
Energy
9.9
Health Care
8.7
Consumer Staples
8.1
Materials
5.6
Telecommunication Services
2.8
Utilities
2.7
Others
0.2
-20
-30
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
YTD
8.7
9.5
0.7
-18.7
11.8
6.6
-2.5
7.6
14.1
8.6
5.9
Trailing Returns† (%)
Profile
YTD
1 Mth
3 Mth
1 Yr
3 Yr
5 Yr
10 Yr
Since
inception
5.9
-0.4
5.9
11.5
10.5
7.7
4.7
2.8
† Net of fees based on a minimum investment of $100,000.
RBC Managed Portfolios – Balanced investment profile
Best/Worst Periods
March 31, 2015
1 Yr
Ended
3 Yr
Ended
5 Yr
Ended
10 Yr
Ended
Best
19.5%
Feb-10
11.2%
Mar-06
9.6%
Feb-14
4.7%
Mar-15
Worst
-20.8%
Feb-09
-9.4%
Mar-03
-1.9%
Mar-05
-0.5%
Jun-10
Average
2.8%
2.7%
2.7%
2.7%
171
147
123
63
Positive periods 66.1%
68.7%
77.2%
92.1%
No. of periods
Profile Holdings (% of net assets)
Distributions (based on a minimum investment of $100,000 reset annually)
Total distributions
Interest
Dividends
Capital gains
Cash & Fixed Income
39.5
2015*
2014
2013
2012
2011
2010
$550
$5,409
$3,000
$2,927
$3,010
$2,879
46%
50%
46%
49%
61%
9%
45%
53%
43%
36%
45%
5%
1%
8%
3%
Canadian Equities
U.S. Equities
International Equities
20.2
39.5
1.3
5.0
13.8
11.8
7.6
60.5
20.2
5.6
7.1
3.6
3.9
21.5
13.8
1.7
6.0
14.3
4.9
3.4
6.0
4.5
4.5
100.0
March 31, 2015
4.5
14.3
21.5
March 31, 2015
CASH AND FIXED INCOME
Cash
RBC Private Short-Term Income Pool
RBC Private Canadian Bond Pool
RBC Private Canadian Corporate Bond Pool
RBC Global Bond Fund
EQUITIES
Canadian Equities
RBC Private Canadian Dividend Pool
RBC Private Canadian Equity Pool
RBC O’Shaughnessy All-Canadian Equity Fund
RBC Private Canadian Mid-Cap Equity Pool
U.S. Equities
RBC Private U.S. Equity Pool
RBC Private O’Shaughnessy U.S. Growth Equity Pool
RBC Global Dividend Growth Fund (U.S. Holdings)
International Equities
RBC European Equity Fund
RBC Asian Equity Fund
RBC Global Dividend Growth Fund (Int'l Holdings)
Emerging Markets Equities
RBC Emerging Markets Equity Fund
TOTAL
Asset Mix (%)
Emerging Markets Equities
Top 25 Holdings
February 28, 2015
Issuer
% Assets
Royal Bank of Canada
1.0
Cash
0.9
Apple Inc
0.9
Prov of Ontario 3.45% Jun 02 45
0.8
TD Bank
0.8
United Health Grp Inc
0.8
CVS Health Corp
0.7
Bank of Nova Scotia
0.6
Cdn National Railway Co
0.6
Rio Tinto Plc
0.5
Anheuser-Busch InB
0.5
Oracle Corp
0.5
Financement Que
0.5
Bank of Montreal 3.5% Dec 01 16
0.5
Union Pac Corp
0.5
Honeywell Intl Inc
0.5
Medtronic Plc
0.5
Edison Intl
0.5
Microsoft Corp
0.5
Wells Fargo & Co
0.5
Williams Cos Inc
0.5
Magna Intl Inc
0.5
Suncor Energy Inc
0.5
Toyota Motor Corp
0.4
Manulife Financial Corp
0.4
Total % of Top 25 Holdings
14.8
Return of capital
* Distributions are characterized at year-end.
The indicated rates of return for the RBC Managed Portfolios investment profiles are the historical annual compounded total returns for the periods
after deduction of fees and charges in respect of the program. Rates of return for periods of less than one year are simple rates of return after
deduction of fees and charges in respect of the program. Fees are calculated based on a minimum account size of $100,000, using the fee schedule
in effect during the period. Returns are based on the total returns of the participating RBC Private Pools and RBC Funds including changes in unit
value and reinvestment of all distributions. The performance for each pool or fund is based on the change in the net asset value of Series O units of
the pool or fund during the period. Please read the account agreement and supporting documents, and the prospectus or Fund Facts document of the
participating funds and pools before investing in RBC Managed Portfolios program. Mutual funds are not guaranteed, their values change frequently
and past performance may not be repeated. RBC Managed Portfolios is managed by RBC Global Asset Management Inc. (RBC GAM) and distributed
through Royal Mutual Funds Inc. (RMFI). Investors pay a monthly fee to RMFI based on the net asset value of the investor’s account. A portion of the
monthly fee is paid to RBC GAM. No management fees are charged by RBC GAM to the RBC Private Pools in respect of the program and no sales charge
or trailing commissions are payable by investors in connection with any purchases, redemptions or switches in the program. RBC GAM and RMFI are
separate corporate entities which are affiliated. RMFI is licensed as a financial services firm in the province of Quebec.
® / TM Trademark(s) of Royal Bank of Canada. Used under licence. © RBC Global Asset Management Inc. 2015
42184 (04/2015)
015_070_GAM_42184 (03-2015)_MP_Balanced_EN_V1_2 05/05/2015