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RBC Managed Portfolios
Cash Flow investment profile
MARCH 31, 2015
Objective
Commentary
This portfolio focuses on providing
regular, tax-efficient monthly income
with the potential for modest levels
of capital appreciation.
This quarter, the Cash Flow profile benefited from falling bond yields and the marginally
positive performance of Canadian equities. Bond prices rose on expectations that softer but
still steady growth in the U.S. will keep the U.S. Federal Reserve from raising interest rates
until later this year. The European Central Bank (ECB) and the Bank of Japan continue to try
to boost their economies with stimulative monetary policies, with the ECB implementing its
version of quantitative easing in March. The Bank of Canada also sought to offset the negative
impact of sharply lower oil prices with a surprise cut to its overnight rate. Despite the weak
performance of stocks in the financial, energy and materials sectors, Canadian stocks held up
due to strong performance in the industrials, consumer and health care sectors.
Fund Details
Profile inception date
Net assets
November 2005
$457.3 MM
Fee Tiers*
First $150,000
1.5%
Next $100,000
1.25%
Over $250,000
1.0%
Based on our outlook, the asset mix of the Cash Flow profile is slightly overweight fixed income
and slightly underweight Canadian equities relative to our strategic benchmark weightings.
Minimum fee of $1,250
Distribution frequency
Income
monthly
Capital gains
annually
Minimum investment
$100,000
Performance Analysis
Benchmark
FTSE TMX Canada
30 Day T-Bill Index
2.0%
Growth of $100,000
63.0%
Total fixed income and cash
65.0%
175
35.0%
150
S&P 500 TR Index, (C$)**
0.0%
MSCI EAFE Net Index, (C$)**
0.0%
MSCI EM Net Index, (C$)
Total equity
Total
0.0%
35.0%
’000s
FTSE TMX Canada Universe
Bond Index
S&P/TSX Composite TR Index
March 31, 2015
$156,197
125
100
75
100.0%
* O
perating expenses and applicable taxes are not
included in the fee schedule below.
50
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Calendar Returns† (%)
** 25% hedged to C$.
20
10
Sector Mix (% equities)
February 28, 2015
Financials
44.6
Energy
23.5
Industrials
7.0
Materials
5.9
Utilities
5.6
Consumer Discretionary
5.4
Telecommunication Services
4.3
Consumer Staples
3.0
Others
0.7
Health Care
0.0
0
-10
-20
-30
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
YTD
NA
5.6
1.7
-10.4
16.1
7.7
2.9
5.6
4.3
7.4
2.2
Trailing Returns† (%)
Profile
YTD
1 Mth
3 Mth
1 Yr
3 Yr
5 Yr
10 Yr
Since
inception
2.2
-0.7
2.2
6.4
5.8
5.5
NA
4.8
† Net of fees based on a minimum investment of $100,000.
RBC Managed Portfolios – Cash Flow investment profile
Best/Worst Periods
March 31, 2015
1 Yr
Ended
3 Yr
Ended
5 Yr
Ended
Best return
21.1%
Feb-10
10.6%
Feb-12
8.4%
Feb-14
Worst return
-12.9%
Feb-09
-2.5%
Feb-09
3.1%
Nov-11
Average return
4.7%
4.2%
No. of periods
102
78
54
Positive periods 88.2%
92.3%
100.0%
10 Yr
Asset Mix (%)
March 31, 2015
Ended
Cash & Fixed Income
34.2
4.8%
Canadian Equities
65.8
Profile Holdings (% of net assets)
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
RBC Private Income Pool (fixed income holdings)
EQUITIES
Canadian Equities
RBC Private Income Pool (equity holdings)
RBC Private Canadian Dividend Pool
U.S. Equities
International Equities
TOTAL
65.8
1.4
5.3
13.6
28.6
5.3
11.6
34.2
34.2
12.1
22.1
0.0
0.0
100.0
Distributions (based on a minimum investment of $100,000 reset annually)
Top 25 Holdings
February 28, 2015
Issuer
% Assets
TD Bank
2.2
Bank of Nova Scotia
2.0
Royal Bank of Canada
1.4
Canadian Imperial Bank of Commerce
1.3
Cdn National Railway Co
1.3
Enbridge Inc
1.3
Bank of Montreal
1.3
Prov of Ontario 3.45% Jun 02 45
1.1
Brookfield Asset Mgt Class A
1.1
Suncor Energy Inc
1.1
National Bank B/A Mar 16 15
1.0
Manulife Financial Corp
1.0
TransCanada Corp
1.0
Cdn Natural Resources Ltd
0.9
Magna Intl Inc
0.8
Cash
0.8
2015*
2014
2013
2012
2011
2010
$956
$3,796
$3,617
$3,737
$4,115
$4,397
Interest
65%
70%
67%
70%
72%
Royal Bank of Cda 2.82% Jul 12 18
0.8
Dividends
27%
28%
28%
24%
20%
National Bank T/D 0.7% Mar 02 15
0.7
1%
1%
2%
CIBC 2.35% Oct 18 17
0.7
4%
5%
6%
TD Bank 2.45% Apr 02 19
0.7
Bank of Nova Scotia 2.46% Mar 14 19
0.7
Hydro One Inc 5.36% May 20 36
0.6
Bank of Montreal 3.21% Sep 13 18
0.6
Bell Canada 6.1% Mar 16 35
0.6
Prov of Ontario 3.5% Jun 02 24
0.6
Total distributions
Capital gains
4%
Return of capital
2%
2%
* Distributions are characterized at year-end.
Total % of Top 25 Holdings
25.6
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
42178 (04/2015)
015_070_GAM_42178 (03-2015)_MP_CashFlow_EN_V1_2 05/05/2015