RBC Managed Portfolios
Income investment profile
MARCH 31, 2015
Objective
Commentary
This portfolio focuses on generating
income returns, with a secondary
emphasis on inflation protection.
This quarter, the Income profile benefited from rising bond prices, as worries over deflation
and sluggish global economic growth levels drove some investors into the safe haven of
fixed income investments. Decent returns from its diversified equity holdings supported the
profile’s positive returns, particularly its international equities, which were boosted sharply
higher by a weaker Canadian dollar. The European Central Bank’s quantitative easing program
was seen as a positive for the region, improving the outlook for Europe’s economy and equity
markets. Highly stimulative global monetary policies across the globe, solid growth in the
U.S. and a slowly improving European economy are expected to support global equity values.
Emerging markets (EM) should also help given the positive impact of the expected rise in
developed nation demand and EM’s increased competitiveness in light of the sharp rise of the
U.S. dollar.
Fund Details
Profile inception date
Net assets
February 2000
$823.4MM
Fee Tiers*
First $150,000
1.6%
Next $100,000
1.5%
Over $250,000
1.0%
Minimum fee of $1,250
Based on our outlook, the asset mix of the Income profile continues to be underweight fixed
income and overweight equities relative to our strategic benchmark weightings.
Distribution frequency
Capital gains
Minimum investment
monthly
annually
$100,000
Benchmark
FTSE TMX Canada
30 Day T-Bill Index
2.0%
FTSE TMX Canada Universe
Bond Index
78.0%
Total fixed income and cash
80.0%
S&P/TSX Composite TR Index
Performance Analysis
175
10.0%
S&P 500 TR Index, (C$)**
5.0%
MSCI EAFE Net Index, (C$)**
5.0%
MSCI EM Net Index, (C$)
0.0%
$147,995
150
125
20.0%
100
100.0%
75
* O
perating expenses and applicable taxes are not
included in the fee schedule below.
50
Total equity
Total
March 31, 2015
Growth of $100,000
’000s
Income
2005
** 25% hedged to C$.
2006
2007
2008
2009
2010
2011
2012
2013
2014
Calendar Returns† (%)
20
Sector Mix (% equities)
February 28, 2015
10
Financials
29.8
0
Consumer Discretionary
13.1
-10
Energy
11.7
Industrials
11.0
Consumer Staples
7.9
Information Technology
7.8
Health Care
6.9
Materials
5.1
Telecommunication Services
3.4
Utilities
2.7
Others
0.6
-20
-30
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
YTD
4.6
5.1
1.6
-4.2
7.6
4.8
2.9
3.9
4.8
5.8
3.5
Trailing Returns† (%)
Profile
YTD
1 Mth
3 Mth
1 Yr
3 Yr
5 Yr
10 Yr
Since
inception
3.5
-0.3
3.5
7.3
5.5
4.9
4.0
3.4
† Net of fees based on a minimum investment of $100,000.
RBC Managed Portfolios – Income investment profile
Best/Worst Periods
March 31, 2015
1 Yr
Ended
3 Yr
Ended
5 Yr
Ended
10 Yr
Ended
Best
11.4%
Feb-10
6.6%
Feb-12
5.8%
Feb-14
4.0%
Mar-13
Worst
-6.5%
Feb-09
-1.1%
Mar-03
1.1%
Feb-09
2.3%
Jun-10
Average
3.2%
3.3%
3.3%
3.3%
171
147
123
63
Positive periods 79.5%
95.9%
100.0%
100.0%
No. of periods
Profile Holdings (% of net assets)
75.1
1.3
28.2
33.0
5.8
6.8
24.9
11.3
9.1
2.2
6.4
3.3
1.6
1.5
7.2
3.5
2.2
1.5
100.0
Distributions (based on a minimum investment of $100,000 reset annually)
Total distributions
Interest
Dividends
Capital gains
6.4
7.2
2015*
2014
2013
2012
2011
2010
$729
$4,208
$3,092
$3,295
$3,415
$3,750
March 31, 2015
Cash & Fixed Income
Canadian Equities
U.S. Equities
11.3
75.1
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 O’Shaughnessy All-Canadian Equity Fund
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 (%)
International Equities
Top 25 Holdings
February 28, 2015
Issuer
% Assets
Prov of Ontario 3.45% Jun 02 45
1.5
Prov of Quebec 4.5% Dec 01 17
1.3
Financement Que 3.5% Dec 01 16
1.2
Canada Govt 2.75% Jun 01 22
1.2
Canada Housing Trust 2.05% Jun 15 17
1.2
Canada Housing Trust 3.35% Dec 15 20
1.0
TD Bank B/A Mar 16 15
1.0
Prov of Ontario 2.1% Sep 08 19
0.9
Prov of Ontario 1.9% Sep 08 17
0.9
Prov of Ontario 2.6% Jun 02 25
0.9
Prov of Quebec 3.75% Sep 01 24
0.8
Prov of Ontario 4.3% Mar 08 17
0.8
Canada Govt 1.25% Sep 01 18
0.7
Prov of Ontario 2.1% Sep 08 18
0.7
Royal Bank of Canada
0.7
Prov of Ontario 3.5% Jun 02 24
0.7
Canada Govt 1.5% Feb 01 17
0.7
Prov of Ontario 4.65% Jun 02 41
0.7
TD Bank 2.45% Apr 02 19
0.6
Bank Montreal 2.43% Mar 04 19
0.6
68%
83%
79%
82%
81%
TD Bank
0.6
8%
17%
20%
17%
14%
Canada Govt 1.75% Sep 01 19
0.6
1%
1%
5%
Natl Bank T/D 0.7% Mar 02 15
0.6
Canada Housing Trust 1.7% Dec 15 17
0.6
Canada Housing Trust 1.85% Dec 15 16
0.6
24%
Return of capital
* Distributions are characterized at year-end.
Total % of Top 25 Holdings
21.1
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
42180 (04/2015)
015_070_GAM_42180 (03-2015)_MP_Income_EN_V1_2 05/05/2015