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RBC Managed Portfolios
Conservative investment profile
MARCH 31, 2015
Objective
Commentary
This portfolio focuses on providing income
and the potential for moderate levels of
capital growth.
This quarter, the Conservative profile was lifted by strength in fixed income prices as global
central banks continued with their dovish responses to low growth and worries of deflation.
Exposure to strongly performing international equities, whose returns were boosted by a
weaker Canadian dollar, also helped returns. 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. The Bank of Canada moved to offset
the ongoing negative impact of sharply lower oil prices by cutting the overnight rate by a
quarter-percent, surprising markets but lifting bond prices in the process. Accommodative
central bank monetary policies and growing signs a strengthening global economy should
help underpin both bond and equity values moving forward.
Fund Details
Profile inception date
Net assets
February 2000
$3,034.9MM
Fee Tiers*
First $150,000
1.6%
Next $100,000
1.5%
Over $250,000
1.0%
Based on our outlook, the asset mix of the Conservative profile continues to be underweight
fixed income and overweight equities relative to our strategic benchmark weightings.
Minimum fee of $1,250
Distribution frequency
Income
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
63.0%
Total fixed income and cash
65.0%
S&P/TSX Composite TR Index
Performance Analysis
Growth of $100,000
175
15.0%
10.0%
MSCI EAFE Net Index, (C$)**
10.0%
125
Total equity
Total
0.0%
35.0%
’000s
S&P 500 TR Index, (C$)**
150
MSCI EM Net Index, (C$)
March 31, 2015
$156,352
100
100.0%
75
* O
perating expenses and applicable taxes are not
included in the fee schedule below.
50
2005
** 25% hedged to C$.
2006
2007
2008
2009
2010
2011
2012
2013
2014
Calendar Returns† (%)
20
Sector Mix (% equities)
February 28, 2015
10
Financials
30.3
0
Consumer Discretionary
12.3
-10
Energy
12.1
Industrials
10.1
Information Technology
8.3
Consumer Staples
7.7
Health Care
7.5
Materials
4.6
Telecommunication Services
3.9
Utilities
2.7
Others
0.5
-20
-30
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
YTD
6.6
7.1
0.8
-10.5
9.9
5.2
1.8
5.8
8.8
7.4
4.4
Trailing Returns† (%)
Profile
YTD
1 Mth
3 Mth
1 Yr
3 Yr
5 Yr
10 Yr
Since
inception
4.4
-0.4
4.4
9.3
7.9
6.5
4.5
3.3
† Net of fees based on a minimum investment of $100,000.
RBC Managed Portfolios – Conservative investment profile
Best/Worst Periods
March 31, 2015
1 Yr
Ended
3 Yr
Ended
5 Yr
Ended
10 Yr
Ended
Best
15.5%
Feb-10
8.2%
Feb-12
7.9%
Feb-14
4.5%
Mar-15
Worst
-13.1%
Feb-09
-5.0%
Mar-03
-0.1%
Feb-09
1.0%
Jun-10
Average
3.1%
3.2%
3.2%
3.2%
171
147
123
63
Positive periods 71.9%
78.9%
98.4%
100.0%
No. of periods
Profile Holdings (% of net assets)
60.0
1.3
12.3
29.3
8.3
8.8
40.0
16.3
16.3
11.5
5.5
3.3
2.7
12.2
6.3
3.2
2.7
100.0
Distributions (based on a minimum investment of $100,000 reset annually)
2015*
Total distributions
$702
2014
$4,731
2013
$3,081
2012
$3,240
2011
$3,285
12.2
2010
$3,468
March 31, 2015
Cash & Fixed Income
11.5
16.3
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
U.S. Equities
RBC Private U.S. Equity Pool
RBC O’Shaughnessy U.S. Value Fund
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)
TOTAL
Asset Mix (%)
60.0
Canadian Equities
U.S. Equities
International Equities
Top 25 Holdings
February 28, 2015
Issuer
% Assets
Prov of Ontario 3.45% Jun 02 45
1.4
TD Bank
1.1
Royal Bank of Canada
1.1
Financement Que 3.5% Dec 01 16
1.1
Prov of Quebec 4.5% Dec 01 17
1.0
Bank Of Nova Scotia
0.9
National Bank B/A Mar 16 15
0.8
Prov of Ontario 2.6% Jun 02 25
0.8
Canada Housing Trust 3.35% Dec 15 20
0.7
Prov of Quebec 3.75% Sep 01 24
0.7
Cdn National Railway Co
0.7
Canada Govt 2.75% Jun 01 22
0.7
Brookfield Asset Mgt Class A
0.7
Prov of Ontario 3.5% Jun 02 24
0.6
Prov of Ontario 4.65% Jun 02 41
0.6
Enbridge Inc
0.6
TD Bank B/A Mar 16 15
0.6
Canada Housing Trust 2.05% Jun 15 17
0.5
National Bank T/D 0.7% Mar 02 15
0.5
0.5
64%
70%
64%
67%
70%
Bank of Montreal
Dividends
11%
30%
35%
32%
25%
Canadian Imperial Bank of Commerce
0.5
Capital gains
25%
1%
1%
5%
Canada Govt 1.75% Sep 01 19
0.5
Prov of Ontario 4.3% Mar 08 17
0.5
Canada Housing Trust 1.85% Dec 15 16
0.5
Prov of Ontario 1.9% Sep 08 17
0.5
Interest
Return of capital
* Distributions are characterized at year-end.
Total % of Top 25 Holdings
18.1
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
42182 (04/2015)
015_070_GAM_42182 (03-2015)_MP_Conservative_EN_V1_2 05/05/2015