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R B C W E A LT H M A N A G E M E N T
GLOBAL INSIGHT
W E E K L Y
D ECE M B E R 1 9 , 2 0 1 4
A C LO S E R LO O K
Glass Half Full for 2015
Kelly Bogdanov – San Francisco
With 2015 just around the corner, it’s time to step back from the day-to-day and week-to-week noise of
financial markets and focus on potential opportunities for the year ahead.
Earlier this month, our team of analysts in the U.S., Canada,
Europe, and Asia published the Global Insight 2015 Outlook
report, which provides RBC Wealth Management’s views on
the economy, financial markets, commodities, and currencies.
It also includes thought-provoking Q&A on timely issues that
could impact investment portfolios next year.
North America and Japan Led Among Major Markets in 2014
Year-to-Date Total Return Performance in Local Currencies
13.8%
8.3%
Following are highlights from the report:
■
■
■
■
■
We have a “half full” outlook for the global economy. We
expect 2015 growth to modestly surpass the 2014 pace. U.S.
GDP could grow 3%+ for the first time since 2005. Investors
should maintain their full allocation to equities.
The Federal Reserve likely starts hiking rates midyear. But
watch the data—the timing will depend on how it unfolds.
Rate hikes shouldn’t pose a problem for the U.S. stock
market until partway through or late in the tightening cycle
(likely beyond 2015). However, corrections could occur
as monetary policy transitions. We expect the S&P 500 to
deliver high single-digit returns plus dividends.
Canadian equity markets will experience conflicting crosscurrents: energy and resource stocks will likely remain
under pressure while Canada’s export sector benefits from
stronger U.S. demand and a lower Canadian dollar. On
balance Canadian equities should deliver positive returns.
Europe is the “half empty” part of our view. Considerable
structural reforms are needed at the country level to get
Click here for authors’ contact information.
For Important Disclosures, see page 6.
U.S.
Canada
S&P 500
TSX
7.7%
Japan
TOPIX
2.7%
2.0%
German
DAX
Hang
Seng
-0.5%
U.K. FTSE
All Share
Source - RBC Wealth Management, Bloomberg; data through 12/18/14
M A R K ET P U L S E
4
An eventful year ahead for U.K. telecoms
4
More evidence the services sector drives China’s growth
The Global Insight Weekly will not be published during the
holidays. The next edition will be available January 9 in North
America and January 12 in Europe and Asia.
the economy moving. If reforms do occur, it could spur an
equity rally, especially considering valuations are relatively
low and earnings are expected to grow. But it’s not a given
that meaningful reforms will actually transpire.
■
■
■
■
Asian stocks are attractively valued. Central bank and fiscal
policies have begun to boost Japan’s inflation, and are quite
supportive of stock prices there. The Chinese government
will likely introduce pro-growth measures if GDP growth is
at risk of slowing below 7%.
In fixed income, investors would benefit from diversifying
their portfolios to minimize volatility and liquidity risks that
could emerge in 2015. Those risks may come into play as
major central banks move in different directions.
China’s slower growth will likely continue to constrain
commodity prices in 2015. Following a steep decline this
year, oil prices should stabilize once supply and demand
come into balance later in 2015. (See chart for RBC Capital
Markets’ updated oil forecasts.)
Oil Prices Should Bounce, but Remain Relatively Low in 2015
RBC Capital Markets Average Annual and Long-Term Estimates
WTI Crude Oil
Brent Crude Oil
$100
$90
$80
$70
$60
$54
$59
$65
$83
$89
$95
$74
$71
$50
$40
$30
$20
$10
$0
Current Price
2015E
2016E
Long Term
Source - RBC Capital Markets estimates. “Current Price” reflects 12/18/14 close.
We expect continued dollar strength, but at a slower pace,
and with a handful of currencies gaining against the dollar.
Happy holidays and have a prosperous 2015!
WWHHATAT’ S’ SMMOOV VI NI NGGMMA AR RK KETETS S
Can’t Ignore the Wounded Russian Bear
Sentiment has been swinging widely as three forces—crude oil,
high yield debt, the Russian ruble—have tugged markets.
On Tuesday, global equity markets traded tentatively as
memories of the 1998 ruble crisis rushed back to the fore. The
ruble collapsed to 79.17 against the dollar during intraday
trading, the lowest level in the post-Soviet era. This came
despite the Central Bank of Russia’s unexpected 650-basis point
overnight rate hike to 17%, which was intended to stabilize the
currency. The severe crude oil correction, along with Western
sanctions, has hammered the ruble and threatens to push the
Russian economy to the brink.
But equity markets staged a dramatic rally following the Federal
Reserve meeting—despite the fact the statement and press
conference merely trimmed around the edges. Equities were also
helped along because the oil decline lost momentum, energy
stocks and high yield rallied, and the ruble bounced.
Russia Battles Second Currency Collapse in 20 Years,
First in Putin Era
Russian Ruble per U.S. Dollar (RUB/USD inverted)
0
10
20
30
40
50
60
70
1994
1998
2002
2006
2010
2014
Source - RBC Wealth Management, Bloomberg. Data reflects closing prices and is
through 9:00 pm GMT 12/19/14; final data point bounced up to 59.07.
Yet while Russia is in better fiscal shape than it was in 1998, it is
vulnerable. Even though major economies don’t have significant
trade linkages with Russia, and only select European banks are
materially exposed, the intertwined nature of the global financial
system forces markets to pay close attention to the Russian bear.
GLOBAL INSIGHT WEEKLY
December 19, 2014
2
U N I T E D S T AT E S
Kelly Bogdanov – San Francisco
■
■
■
■
■
Second Half of December Is Usually Stronger Than the First
S&P 500 Performance in December Since 1930
The Dow Jones Industrial Average rallied 709 points (4.2%)
following the Fed meeting, the biggest two-day point gain
since November 2008 and the largest two-day percentage
gain since November 2011. All 10 S&P 500 sectors rallied.
Energy led the way, surging 9.7%, which more than offset its
month-to-date losses.
The broader market’s move was likely influenced by the
calendar, not just the Fed. The Dow and S&P 500 typically
rally in December, usually more forcefully during the
second half of the month as the holidays approach. Since
1930, the S&P 500 has traded higher 61% of the time during
the first half of December, but 78% of the time in the second
half. While it inched up 0.12%, on average, during the first
half, it rallied 1.37% in the second half (see chart). One
reason the market tends to rally in December, especially
during years when it has been relatively strong, is because
some institutional fund managers play “catch-up” and
chase the market toward year-end, in an attempt to boost
performance and show winning stock positions among their
holdings.
Since the crude oil collapse, S&P 500 earnings estimates
have shifted lower. The consensus forecast for full-year
2015 earnings growth has fallen to 8.4% y/y ($127.07 per
share) from 12.4% on October 1, according to Thomson
Reuters I/B/E/S. No surprise, energy sector estimates
have plummeted to a 20.4% y/y decline from 7.0% growth
during the same period. Only one sector has experienced an
uptick—financials (to 17.6% y/y growth from 16.7%).
The Fed meeting was perceived as hawkish by some
and dovish by others. Committee members removed
the “considerable time” language, as expected, and
replaced it with “patient.” But then they quoted a prior
statement’s “considerable time” reference later in the text.
It’s no wonder economists can’t shake their reputation for
doublespeak! Regarding inflation, the Fed is more focused
on surveys that measure price changes than market-based
inflation data (breakevens, 5y5y forward rates), and cares
more about inflation projections rather than the current
inflation rate. This explains why the Fed is not overly
bothered by recent low inflation readings.
The meeting and press conference support the notion the
Fed will indeed be patient in raising rates. In fact, Fed Chair
Janet Yellen emphasized that once the Fed begins hiking
rates, it won’t necessarily raise them by 25 basis points
at each subsequent meeting, as some hawkish market
participants have been assuming. The climb back up toward
GLOBAL INSIGHT WEEKLY
1.37%
Average Return
Median Return
1.02%
0.77%
0.12%
1st Half of December
2nd Half of December
Source - RBC Wealth Management, Bloomberg; data through 2013
interest rate normalization seems like it could go far more
slowly than prior cycles, and look more like a walk up a
low-grade hill rather than a hike up a steep mountain.
CANADA
Patrick McAllister & Eric Lafortune – Toronto
■
The S&P/TSX rallied amid a surge in energy stocks. The
sector managed to gain over 10% despite crude oil prices
that remained relatively flat.
■
Despite positive stock performance overall, it wasn’t
all good news in the energy sector. Several companies
including Twin Butte Energy, Argent Energy Trust,
Penn West Petroleum, Bonavista Energy, and Long Run
Exploration added their names to the list of companies
forced to cut their dividends in response to the lower crude
oil price reality.
■
Alimentation Couche-Tard is set to leverage some of the
spare capacity on its balance sheet to acquire The Pantry.
The deal was well received by investors with Couche-Tard
shares trading up nearly 9% post-announcement. With
a store network complementary to its existing footprint,
Couche-Tard has significant potential to extract synergies
and improve productivity at The Pantry assets.
■
Investors interpreted Wednesday’s Federal Reserve
policy statement as being hawkish in tone and raising
the possibility of a rate hike in the second half of 2015.
Government of Canada bond yields moved in sympathy
with U.S. Treasuries as the 2- to 30-year component of the
Canadian government yield curve increased 4–8 basis points.
December 19, 2014
3
■
■
The Canadian dollar traded at its lowest level in over five
years on Monday, closing at $0.8612 CAD/USD. Continued
oil price weakness has driven investors to safer assets and
out of commodity-based economies.
The S&P/TSX Canadian Preferred Share Total Return
Index is down around 2.5% m/m. We now see attractive
entry points in lower-quality shares following strong selling
for year-end tax-loss trading.
China Revises 2013 GDP Number Up 3.4%
Annual GDP of China ($B)
10,000
GDP Revision of 3.4%: $305B
9,000
2010 to 2013 CAGR = 10.53%
8,000
7,000
EUROPE
6,000
Frédérique Carrier & Davide Boglietti – London
■
■
European equity markets rose in a volatile week despite
fears of ongoing macroeconomic deterioration of oilexposed countries (Russia), Greek political uncertainty, and
the latest comments from major central banks. The STOXX
Europe 600 Index closed up 3.0% at 340.3 points.
4,000
In the U.K., inflation as measured by the CPI fell by a
larger-than-expected 0.3% to 1.0% y/y in November.
Food, beverage, and transport price components were the
main negative contributors. RBC Capital Markets expects
wage pressures to become more visible as spare capacity
continues to be absorbed.
■
Changes are afoot in the U.K. telecoms market. The industry
landscape will look markedly different in a year’s time.
The well defined silos of mobile, fixed line, television, and
broadband are starting to merge as telecom players position
themselves for quadplay, a bundle of all four services.
■
BT announced it is in exclusive talks to acquire EE, the
U.K.’s largest mobile provider (£12.5B). This could be
greeted with retaliatory action by competitors who feel
threatened. Overall, we are likely entering a less stable
period for telecoms, should each participant react to the
other’s moves.
A S I A PA C I F I C
Jay Roberts – Hong Kong
Japan’s Liberal Democratic Party (LDP), led by Prime
Minister Shinzo Abe, won the general election, as forecast.
The coalition between the LDP and its partner, Komeito,
GLOBAL INSIGHT WEEKLY
2010
2011
2012
2013
Source - RBC Wealth Management, Bloomberg
All major U.K. banks passed the Bank of England’s stress
test, showing an adequate level of capital in an adverse
macroeconomic scenario. Co-operative Bank was the only
financial institution that failed. But the leverage ratio of
some of the banks under a stress scenario raised concerns.
HSBC showed one of the best levels of capital, although the
Asian part of its asset portfolio won’t be tested until next year.
■
■
5,000
maintained its two-thirds majority in the lower house of the
Diet, albeit with very low voter turnout. The victory extends
Abe’s mandate to 2016, which is positive for Japanese
equities, in our view, as Abe continues to pursue a progrowth, reformist policy agenda in 2015 that may include
cuts in Japan’s corporate tax rate.
■
China significantly revised its GDP data for 2013. The
revision was the result of a detailed economic census that
China conducts every five years (GDP for 2008 was also
revised higher as a result of the previous census). The
increase of 3.4% to China’s economy reflected a more
accurate accounting of China’s services sector, which has
been growing consistently well in recent years and became
the country’s largest employer in 2011. The revision will
have limited impact on 2014 data, though, according to the
National Bureau of Statistics.
■
In Hong Kong, Thomas Kwok, co-chairman of Sun Hung
Kai Properties (0016.HK), a major local firm and major
Hang Seng Index component, was convicted of conspiring
with Rafael Hui, previously one of the most senior officials
in the government, to commit misconduct in public
office. Raymond Kwok, his brother, was cleared of charges.
Effectively, it was found that Thomas Kwok paid Hui in order
to gain favourable treatment for the company.
■
The ruling is unlikely to have a major impact on the
stock, in our view, and may even turn out to be a positive
event as it removes an overhang that has been in place
since May 2012 when the Kwok brothers were initially
arrested. Investors have had plenty of time to consider the
ramifications of the case in terms of the stock price.
December 19, 2014
4
M A R K ET S C O R E C A R D
Data as of December 19, 2014
Equities (local currency)
Level
S&P 500
1 Week
MTD
YTD
12 Mos
Govt Bonds (bps chg)
Yield
1 Week
MTD
YTD
12 Mos
2,070.65
3.4%
0.1%
12.0%
14.4%
U.S. 2-Yr Tsy
0.638%
9.8
17.0
25.8
27.4
17,804.80
3.0%
-0.1%
7.4%
10.0%
U.S. 10-Yr Tsy
2.158%
7.7
-0.6
-87.0
-77.1
NASDAQ
4,765.38
2.4%
-0.5%
14.1%
17.4%
Canada 2-Yr
1.013%
4.9
1.9
-12.4
-12.5
Russell 2000
1,195.96
3.8%
1.9%
2.8%
6.3%
Canada 10-Yr
1.810%
5.3
-4.8
-94.8
-89.4
S&P/TSX Comp
14,468.26
5.4%
-1.9%
6.2%
8.0%
U.K. 2-Yr
0.473%
0.7
-3.9
-9.1
-6.2
FTSE All Share
3,515.70
3.7%
-2.2%
-2.6%
-0.2%
U.K. 10-Yr
1.850%
5.0
-7.6
-117.2
-110.9
Dow Industrials (DJIA)
STOXX Europe 600
340.30
3.0%
-2.0%
3.7%
6.5%
Germany 2-Yr
-0.081%
-3.6
-4.9
-29.4
-29.8
9,786.96
2.0%
-1.9%
2.5%
4.8%
Germany 10-Yr
0.592%
-3.2
-10.8
-133.7
-127.9
23,116.63
-0.6%
-3.6%
-0.8%
1.0%
3,108.60
5.8%
15.9%
46.9%
46.1%
YTD
12 Mos
Nikkei 225
17,621.40
1.4%
0.9%
8.2%
11.1%
India Sensex
27,371.84
0.1%
-4.6%
29.3%
32.2%
3,279.53
-1.3%
-2.1%
3.5%
6.8%
Brazil Ibovespa
49,650.98
3.4%
-9.3%
-3.6%
-3.8%
Mexican Bolsa IPC
42,529.89
2.0%
-3.8%
-17.4%
0.8%
Commodities (USD)
Price
German DAX
Hang Seng
Shanghai Comp
Singapore Straits Times
Gold (spot $/oz)
MTD
YTD
12 Mos
U.S. Dollar Index
Rate
1 Week
MTD
89.58
1.4%
1.4%
11.9%
11.1%
CAD/USD
0.86
-0.2%
-1.6%
-8.5%
-8.1%
USD/CAD
1.16
0.2%
1.6%
9.2%
8.8%
EUR/USD
1.22
-1.8%
-1.8%
-11.0%
-10.4%
GBP/USD
1.56
-0.5%
-0.1%
-5.6%
-4.5%
AUD/USD
0.81
-1.3%
-4.3%
-8.7%
-8.2%
USD/CHF
0.98
2.1%
1.9%
10.2%
9.5%
1,195.51
-2.2%
2.4%
-0.8%
0.6%
USD/JPY
119.46
0.6%
0.7%
13.4%
14.6%
16.07
-5.6%
4.0%
-17.4%
-16.5%
EUR/JPY
146.14
-1.3%
-1.1%
1.0%
2.6%
Silver (spot $/oz)
Copper ($/ton)
1 Week
Currencies
6,362.00
-2.8%
-0.8%
-13.7%
-11.7%
EUR/GBP
0.78
-1.3%
-1.6%
-5.7%
-6.2%
Oil (WTI spot/bbl)
56.52
-2.2%
-14.6%
-42.6%
-42.8%
EUR/CHF
1.20
0.2%
0.1%
-2.0%
-1.9%
Oil (Brent spot/bbl)
62.28
0.7%
-11.2%
-43.8%
-43.5%
USD/SGD
1.31
0.1%
0.8%
4.1%
3.8%
3.45
-9.0%
-15.5%
-18.3%
-22.6%
USD/CNY
6.22
0.5%
1.2%
2.8%
2.5%
339.22
2.6%
4.7%
-3.5%
-4.6%
USD/BRL
2.66
0.2%
3.7%
12.6%
12.8%
Natural Gas ($/mmBtu)
Agriculture Index
Source - Bloomberg. Note: Equity returns do not include dividends, except for the German DAX. Bond yields in local currencies. Copper and Agriculture Index data as of Thursday’s close.
Dollar Index measures USD vs. six major currencies. Currency rates reflect market convention (CAD/USD is the exception). Currency returns quoted in terms of the first currency in each
pairing. Data as of 9:35 pm GMT 12/19/14.
Examples of how to interpret currency data: CAD/USD 0.86 means 1 Canadian dollar will buy 0.86 U.S. dollar. CAD/USD -8.1% return means the Canadian dollar fell 8.1% vs. the U.S.
dollar year to date. USD/JPY 119.46 means 1 U.S. dollar will buy 119.46 yen. USD/JPY 14.6% return means the U.S. dollar rose 14.6% vs. the yen year to date.
U P CO M I N G EV E N TS
MON, DEC 22
TUE, DEC 23, cont.
TUE, DEC 30
FRI, JAN 2, cont.
U.S. Chicago Fed Nat'l Activity
Canada Oct GDP (0.1% m/m)
China HSBC Manufacturing PMI
U.S. ISM Manufacturing (57.5)
U.S. Exist. Home Sales (-1.1% m/m)
THU, DEC 25
U.S. S&P/Case-Shiller Home Prices
RBC Canadian Manufacturing
TUE, DEC 23
Japan CPI (2.5% y/y, core 2.1% y/y)
WED, DEC 31
U.K. Q3 GDP (0.7% q/q, 3.0% y/y)
Japan Industrial Prod. (1.1% m/m)
China Official Manufacturing PMI
U.S. Q3 GDP (4.3% q/q annual)
Japan Vehicle Production
FRI, JAN 2
U.S. Personal Consumption
FRI, DEC 26
China Official Non-Manufacturing PMI
U.S. New Home Sales (0.4% m/m)
China Industrial Profits
Eurozone Markit Manuf. PMI (50.8)
U.S. PCE (1.3% y/y, core 1.5% y/y)
All data reflect Bloomberg consensus forecasts where available
GLOBAL INSIGHT WEEKLY
December 19, 2014
5
AUTHORS
Kelly Bogdanov – San Francisco, United States
[email protected]; RBC Capital Markets, LLC.
Patrick McAllister – Toronto, Canada
[email protected]; RBC Dominion Securities Inc.
Eric Lafortune – Toronto, Canada
Distribution of Ratings
For the purpose of ratings distributions, regulatory rules require member firms
to assign ratings to one of three rating categories - Buy, Hold/Neutral, or Sell regardless of a firm’s own rating categories. Although RBC Capital Markets, LLC
ratings of Top Pick (TP)/Outperform (O), Sector Perform (SP) and Underperform (U)
most closely correspond to Buy, Hold/Neutral and Sell, respectively, the meanings
are not the same because our ratings are determined on a relative basis (as
described below).
[email protected]; RBC Dominion Securities Inc.
Frédérique Carrier – London, United Kingdom
[email protected]; Royal Bank of Canada Investment Management (UK) Ltd.
Davide Boglietti – London, United Kingdom
Distribution of Ratings - RBC Capital Markets, LLC Equity Research
As of September 30, 2014
Investment Banking Services
Provided During Past 12 Months
Count
Percent
Count
Percent
[email protected]; Royal Bank of Canada Investment Management (UK) Ltd.
Rating
Jay Roberts – Hong Kong, China
Buy [Top Pick & Outperform]
Hold [Sector Perform]
Sell [Underperform]
[email protected]; RBC Dominion Securities Inc.
858
683
98
52.35
41.67
5.98
308
151
8
35.90
22.11
8.16
Explanation of RBC Capital Markets, LLC Equity Rating System
D I S C LO S U R E S A N D D I S C L A I M E R
Analyst Certification
All of the views expressed in this report accurately reflect the personal views of the
responsible analyst(s) about any and all of the subject securities or issuers. No
part of the compensation of the responsible analyst(s) named herein is, or will be,
directly or indirectly, related to the specific recommendations or views expressed by
the responsible analyst(s) in this report.
Important Disclosures
In the U.S., RBC Wealth Management operates as a division of RBC Capital Markets,
LLC. In Canada, RBC Wealth Management includes, without limitation, RBC
Dominion Securities Inc., which is a foreign affiliate of RBC Capital Markets, LLC.
This report has been prepared by RBC Capital Markets, LLC. which is an indirect
wholly-owned subsidiary of the Royal Bank of Canada and, as such, is a related
issuer of Royal Bank of Canada. Eric Lafortune, Patrick McAllister, and Jay Roberts,
employees of RBC Wealth Management USA’s foreign affiliate RBC Dominion
Securities Inc.; and Davide Boglietti and Frédérique Carrier, employees of RBC
Wealth Management USA’s foreign affiliate Royal Bank of Canada Investment
Management (UK) Limited; contributed to the preparation of this publication.
These individuals are not registered with or qualified as research analysts with
the U.S. Financial Industry Regulatory Authority (“FINRA”) and, since they are not
associated persons of RBC Wealth Management, they may not be subject to NASD
Rule 2711 and Incorporated NYSE Rule 472 governing communications with subject
companies, the making of public appearances, and the trading of securities in
accounts held by research analysts.
In the event that this is a compendium report (covers six or more companies), RBC
Wealth Management may choose to provide important disclosure information
by reference. To access current disclosures, clients should refer to http://www.
rbccm.com/GLDisclosure/PublicWeb/DisclosureLookup.aspx?EntityID=2 to view
disclosures regarding RBC Wealth Management and its affiliated firms. Such
information is also available upon request to RBC Wealth Management Publishing,
60 South Sixth St, Minneapolis, MN 55402.
References to a Recommended List in the recommendation history chart may
include one or more recommended lists or model portfolios maintained by RBC
Wealth Management or one of its affiliates. RBC Wealth Management recommended
lists include a former list called the Prime Opportunity List (RL 3), the Guided
Portfolio: Prime Income (RL 6), the Guided Portfolio: Large Cap (RL 7), the Guided
Portfolio: Dividend Growth (RL 8), the Guided Portfolio: Midcap 111 (RL9), the
Guided Portfolio: ADR (RL 10), and the Guided Portfolio: Global Equity (U.S.) (RL 11).
RBC Capital Markets recommended lists include the Strategy Focus List and the
Fundamental Equity Weightings (FEW) portfolios. The abbreviation ‘RL On’ means
the date a security was placed on a Recommended List. The abbreviation ‘RL Off’
means the date a security was removed from a Recommended List.
GLOBAL INSIGHT WEEKLY
An analyst’s “sector” is the universe of companies for which the analyst provides
research coverage. Accordingly, the rating assigned to a particular stock represents
solely the analyst’s view of how that stock will perform over the next 12 months
relative to the analyst’s sector average. Although RBC Capital Markets, LLC ratings of
Top Pick (TP)/Outperform (O), Sector Perform (SP), and Underperform (U) most closely
correspond to Buy, Hold/Neutral and Sell, respectively, the meanings are not the same
because our ratings are determined on a relative basis (as described below).
Ratings:
Top Pick (TP): Represents analyst’s best idea in the sector; expected to provide
significant absolute total return over 12 months with a favorable risk-reward ratio.
Outperform (O): Expected to materially outperform sector average over
12 months.
Sector Perform (SP): Returns expected to be in line with sector average over
12 months.
Underperform (U): Returns expected to be materially below sector average over
12 months.
Risk Rating:
As of March 31, 2013, RBC Capital Markets, LLC suspends its Average and Above
Average risk ratings. The Speculative risk rating reflects a security’s lower level of
financial or operating predictability, illiquid share trading volumes, high balance
sheet leverage, or limited operating history that result in a higher expectation of
financial and/or stock price volatility.
Valuation and Price Target Impediments
When RBC Wealth Management assigns a value to a company in a research report,
FINRA Rules and NYSE Rules (as incorporated into the FINRA Rulebook) require that
the basis for the valuation and the impediments to obtaining that valuation be
described. Where applicable, this information is included in the text of our research
in the sections entitled “Valuation” and “Price Target Impediment”, respectively.
The analyst(s) responsible for preparing this research report received compensation
that is based upon various factors, including total revenues of RBC Capital Markets,
LLC, and its affiliates, a portion of which are or have been generated by investment
banking activities of the member companies of RBC Capital Markets, LLC and its
affiliates.
Other Disclosures
Prepared with the assistance of our national research sources. RBC Wealth
Management prepared this report and takes sole responsibility for its content
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December 19, 2014
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Past performance is not indicative of future performance.
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Copyright © RBC Dominion Securities Inc. 2014 - Member CIPF
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Copyright © Royal Bank of Canada 2014
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December 19, 2014
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