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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
F E B R UA R Y 2 0 , 2 0 1 5
A C LO S E R LO O K
Signs of Life Outside of the U.S.
Kelly Bogdanov – San Francisco
The surge in merger and acquisition activity in Asia and Europe provides more reasons to incorporate
investments from these regions into portfolios.
For months the conventional investment narrative has been
that the U.S. is leading the global economy and the rest of the
world is largely standing on the sidelines.
While the U.S. is growing at a faster clip than many of its
developed country peers, and has prospects to speed up this
year, there are signs of life in Europe and Asia that shouldn’t be
ignored.
Specifically, merger and acquisition (M&A) activity has perked
up in both regions.
Since October, Asia Pacific and Europe M&A volume is up 103%
y/y and 55%, respectively, compared to only 5% in the U.S. and
North America (see chart). Volume growth disparities are even
wider on a year-to-date basis.
To us, this indicates corporate and private acquirers believe
there are attractive values in Asia and parts of Europe.
Valuations of publicly traded companies in Asia are generally
lower than in the U.S., and they are reasonable for select
higher-risk sectors in Europe, including financials.
In Asia, M&A growth is spread among developed and emerging
economies, and is impressive indeed.
India leads at an eye-popping 430% y/y growth rate. The
election of a new prime minister in 2014, prudent monetary
policies, and the potential for sweeping structural reforms
Click here for authors’ contact information. Priced as of 2/20/15 market close,
EST (unless otherwise noted). All values in USD unless otherwise noted.
For Important and Required Non-U.S. Analyst Disclosures, see page 6.
M&A Volume in Asia and Europe Has Risen Sharply
Merger & Acquisition Volume Growth from October 1, 2014 to February 19, 2015
(y/y % change)
120%
100%
80%
60%
40%
20%
0%
103%
55%
5%
Asia Pacific
Europe
North America
Source - RBC Wealth Management, Bloomberg; data through 2/19/2015
M A R K ET P U L S E
3
Timing for potential Fed tightening gets murkier
3
Canadian engineering giant charged with bribery and fraud
3
French structural reforms clear a major hurdle
4
China mulling merger of state-owned oil companies
Portugal
Spain
Sweden
U.K.
China
Singapore
Thailand
M&A activity also provides an additional reason to be
optimistic about Europe’s prospects. While we hold a neutral
or benchmark stance on the region (meaning, long-term
investors’ portfolios should carry a benchmark allocation to
Europe), modest economic improvements and the tailwind
from the European Central Bank’s quantitative easing program
should support European equities near term.
Japan
The signs of life in Asian and European M&A volume reinforce
our overall positive view on global equities. Specifically, it
supports our overweight stances on Asia ex-Japan and Japan.
450%
400%
350%
300%
250%
200%
150%
100%
50%
0%
Hong Kong
More notable are the 100%+ M&A volume gains for Spain and
Portugal, which were teetering on the brink just a few years
also. From our perspective, this is another indication Europe’s
worst days are behind it.
Merger & Acquisition Volume Growth from October 1, 2014 to February 19, 2015
(y/y % change)
Malaysia
In Europe, the gains are concentrated in a handful of
developed countries with the U.K. leading, followed by
Sweden. The U.K.’s first-place position should be no surprise,
as its economy has led Europe for some time.
Select Asian and European Countries
Have Seen Heightened Deal Activity
India
seems to have given acquirers reasons to scoop up Indian
companies. Volume growth in Malaysia, Hong Kong, and Japan
also has been strong (see chart).
Source - RBC Wealth Management, Bloomberg; data through 2/19/2015
WWHHATAT’ S’ SMMOOV VI NI NGGMMA AR RK KETETS S
Greece Cuts a Deal
Greece and crude oil continued to dominate headlines and
command investors’ attention.
With a deadline looming at month end, Greece announced
late Friday it agreed to a bailout extension with its Eurogroup
creditors. For weeks both parties had refused to compromise
as the Greek government rejected austerity measures and
Eurogroup creditors refused to renew the program without
promises of belt tightening.
Even so, financial markets had assumed both sides would
eventually come to terms. The total value of global equities
reached a new pinnacle even before the deal was announced
(see chart).
While the agreement’s details still need to be ironed out,
prospects for final passage appear positive at this stage.
WTI crude oil finished the week above $50/bbl even though
U.S. inventories continued to rise. While a retest of the $44.45/
bbl low could be in order, RBC Capital Markets anticipates oil
prices will begin to recover in the second half of this year, and
increase in 2016. Its WTI price forecast is $53/bbl for 2015 and
$77/bbl for 2016. Our commodity strategist believes crude oil
supplies could tighten over the medium term partly due to
potential supply constraints facing Iraq (see report).
GLOBAL INSIGHT WEEKLY
The Value of the Global Equity Market Had Climbed
to a New High Even Before Reports of a Greek Debt Deal
World Equity Exchange Market Capitalization (in $T)
70
60
50
40
30
20
2004
2006
2008
2010
2012
2014
Note: Includes only actively traded primary securities on country exchanges; no ETFs
or ADRs.
Source - RBC Wealth Management, Bloomberg; data through 2/19/15
February 20, 2015
2
U N I T E D S T AT E S
Craig Bishop – Minneapolis; Kelly Bogdanov – San Francisco
■
■
■
■
Minutes from the Fed’s January meeting were interpreted
as more dovish than the formal post-meeting statement.
This renewed uncertainties about whether the world’s
leading central bank will indeed begin to raise interest rates
midyear.
The minutes clearly indicate the Fed’s firm conviction in
the continued progress of the U.S. economy, and if this
were the sole factor under consideration, the path to tighter
policy would likely be a slam dunk. However, by explicitly
linking “international developments” to progress in
achieving the Fed’s employment and inflation mandates,
and because of clear concerns over low inflation levels, the
journey to higher rates is anything but easy. The minutes
were inconclusive regarding the timing of the first rate
hike, although the consensus is likely to remain midyear.
Fed Chair Janet Yellen’s upcoming testimony before
Congress (Feb. 24–25) could be the next catalyst and should
provide more clues about the Fed’s timing.
After reaching an all-time high on Tuesday, the S&P 500
took a breather for much of the week. But when Greece
disclosed its deal with creditors late Friday, the S&P 500
rallied to another new high. Industrials and health care
(biotechs up almost 4%) led for the week.
The energy sector lagged as exploration and production
bellwether EOG Resources announced it will slash capital
spending 40% y/y and keep production flat in 2015, at the
same time other operators are planning to raise production.
EOG’s decision to leave some oil in the ground at these low
prices and wait until drilling is more profitable led some
market participants to conclude depressed energy prices
could persist. According to EOG, it intends to purchase
distressed companies if opportunities arise. It is perceived
by some analysts as the strongest domestic E&P operator.
The Market’s View of Fed Rate Hikes Has Shifted
Implied Probabilities of Fed Funds Target Rate by the June 17, 2015, FOMC Meeting
40%
35%
25%
20%
10%
Oct 2014
■
Shares in SNC-Lavalin fell 7% after the Royal Canadian
Mounted Police filed bribery and fraud charges against the
company in relation to previously disclosed transgressions.
SNC said it will contest the charges and stated that its
ability to bid or work on public contracts is not affected.
What impact the reputational damage criminal charges
will have on the company’s ability to successfully win new
GLOBAL INSIGHT WEEKLY
Nov 2014
Dec 2014
Jan 2015
Source - RBC Wealth Management, Bloomberg; weekly data through 2/20/15, months
represent month-end dates
contracts is unknown. The timeline to reach a resolution is
another key uncertainty.
■
Consistent with its previously announced capital plan,
Bombardier issued $600M in equity. The plan calls for a
further $1.5B debt offering. Along with the suspension of
its dividend, the issue proceeds will help the company
navigate a period of elevated capital spending as it
struggles to develop and market its CSeries jet.
■
Government of Canada (GoC) bond yields experienced
heightened volatility and moved lower. The most
significant move was in the 3- to 10-year part of the curve.
Investors looking to extend duration should capitalize on
current volatility to take advantage of any short-term selloffs in government bonds.
■
Yields on the 2-year GoC bond hit their lowest levels in
over 20 years as market expectations of additional rate cuts
by the Bank of Canada increased.
■
Prices of rate-reset preferred shares have recouped some
of January’s losses and appear to have found more solid
footing. In several cases, the incremental yield on preferred
shares versus comparable corporate bonds has increased
significantly.
Patrick McAllister & Alana Awad – Toronto
The S&P/TSX edged lower with declines in each of its three
largest sectors—financials, energy, and materials.
Probability
of 0.5%
15%
CANADA
■
Probability
of 0.0%
30%
EUROPE
Frédérique Carrier & Davide Boglietti – London
■
During the week, European equity markets carefully
watched every development of the Greek debt negotiations
as they came to a head. Markets moved on unconfirmed
reports of any concessions made by one side or the other.
February 20, 2015
3
Late Friday, well after European markets had closed, Greece
announced a draft accord with Eurogroup creditors that
would extend its bailout programme by four months in
exchange for continued economic reforms.
■
■
In order to finalise the agreement, Greece needs to submit
an initial list of reform provisions on Monday, and euro
area finance ministers are scheduled to provide feedback on
Tuesday. The Troika—International Monetary Fund (IMF),
European Central Bank (ECB), and European Commission
(EC)—must validate the reforms. The accord would also be
put before national euro area parliaments.
If approved, the immediate risk of debt default and
eurozone exit would be averted. The bailout extension
would enable Greece to begin to repay IMF loans (first
payment is due March 5), rollover short-term debt, and
continue to fund the government.
■
Even if the accord is finalised, however, Greece and its
creditors would still need to hammer out a long-term
agreement before Greece is required to begin repaying its
ECB loans.
■
A lesser-known, though just as important drama evolved
in the eurozone as French President François Hollande’s
government survived a vote of no confidence. The
government used its special powers to push through
reforms without parliamentary approval, angering the
opposition, which called for the vote. The reforms aim at
cutting red tape to jump start growth in France, which
has been flat over the past three years. As the eurozone’s
second-largest economy, it is critical that France improves
its stagnant economic performance.
■
■
The reforms are intended to enhance the ability to do
business in France by liberalizing the intercity coach
industry, deregulating some professions (e.g., notaries),
speeding up labour tribunals, and introducing Sunday
trading for retail activities. The reforms are not radical
by any means, and do not even tackle one of the biggest
challenge facing labour markets—namely, the 35-hour
working week. Yet, the reform proposals were fiercely
opposed. That the government survived the vote of noconfidence is positive and may embolden it to continue its
reform efforts.
In the U.K., economic data was encouraging, which should
give cheer to the government ahead of an uncertain election
in early May. The unemployment rate decreased further to
5.7%, while wage growth accelerated slightly to 2.1%. This,
and inflation falling further to 0.3% y/y, bodes well for
disposable income growth going forward, in our view. We
thus expect consumer spending, which has been boosted by
lower oil prices, to be a key contributor to economic growth
this year.
GLOBAL INSIGHT WEEKLY
Hollande’s Government Fights Off a Vote of No Confidence
CAC 40 Over Four Months
5000
4800
4600
French equities have been one of the
top-performing markets year to date.
CAC from 10/20/14 to 12/31/14 = 7.05%
CAC from 12/31/14 to 2/20/15 = 13.06%
4400
4200
4000
3800
Oct 2014
Nov 2014
Dec 2014
Jan 2015
Feb 2015
Source - RBC Wealth Management, Bloomberg; data through 2/20/15
A S I A PAC I F I C
Jay Roberts – Hong Kong
■
As we enter the Chinese New Year period, activity in a
number of Asian equity markets tends to slow down with
several markets closing. Japanese equities have remained
buoyant. The benchmark TOPIX Index rose to a new cycle
high and its highest level since late 2007. The index has
risen by over 5% in 2015. Notably, the strength in Japanese
equities has persisted despite the yen remaining relatively
unchanged against the dollar thus far in the year.
■
Large-cap Chinese energy stocks received a boost when
The Wall Street Journal reported that the government
has asked economic advisors to study the possibility
of merging the state-owned oil companies to improve
efficiency and competitiveness internationally. PetroChina
(0857.HK), Sinopec (0386.HK), and CNOOC (0883.HK), the
three largest energy companies, rallied strongly. A similar
unconfirmed report concerning the telecoms sector had
previously caused a rally in that sector, too. China Mobile
(0941.HK) recently traded at its highest level since 2008.
■
Indonesia unexpectedly cut its benchmark interest rate to
7.5% from 7.75%, the first cut in three years. Lower inflation
has provided Bank Indonesia with more scope to loosen
policy.
■
In Singapore, where the property market has been cooling,
home sales posted their weakest start to the year since the
global financial crisis began. Only 372 units were sold by
developers in January.
February 20, 2015
4
M A R K ET S C O R E C A R D
Data as of February 20, 2015
Equities (local currency)
S&P 500
Dow Industrials (DJIA)
NASDAQ
Russell 2000
Level
1 Week
MTD
YTD
12 Mos
Govt Bonds (bps chg)
Yield
2,110.30
0.6%
5.8%
2.5%
14.7%
U.S. 2-Yr Tsy
0.634%
18,140.44
0.7%
5.7%
1.8%
12.4%
U.S. 10-Yr Tsy
4,955.97
1.3%
6.9%
4.6%
16.1%
Canada 2-Yr
1 Week
MTD
YTD
-0.7
18.5
2.113%
6.3
0.403%
-2.8
12 Mos
-3.0
31.6
47.3
-5.8
-63.8
0.9
-60.9
-60.0
1,231.79
0.7%
5.7%
2.2%
6.0%
Canada 10-Yr
1.431%
-0.1
18.0
-35.7
-111.6
S&P/TSX Comp
15,172.24
-0.6%
3.4%
3.7%
6.8%
U.K. 2-Yr
0.414%
3.2
6.3
-3.2
-9.6
FTSE All Share
3,724.45
0.8%
2.8%
5.4%
1.9%
U.K. 10-Yr
1.765%
8.9
43.5
0.9
-103.3
382.27
1.4%
4.1%
11.6%
14.2%
Germany 2-Yr
-0.222%
-0.2
-3.8
-12.4
-34.7
German DAX
11,050.64
0.8%
3.3%
12.7%
14.9%
Germany 10-Yr
0.367%
2.5
6.5
-17.4
-132.3
Hang Seng
24,832.08
0.6%
1.3%
5.2%
10.9%
STOXX Europe 600
Shanghai Comp
3,246.91
1.3%
1.1%
0.4%
59.7%
Nikkei 225
18,332.30
2.3%
3.7%
5.1%
26.9%
India Sensex
29,231.41
0.5%
0.2%
6.3%
42.3%
3,435.66
0.3%
1.3%
2.1%
11.3%
Brazil Ibovespa
51,237.70
1.2%
9.2%
2.5%
8.4%
Mexican Bolsa IPC
43,551.26
1.1%
6.4%
0.9%
9.8%
Singapore Straits Times
Commodities (USD)
Gold (spot $/oz)
Price
1 Week
U.S. Dollar Index
1 Week
MTD
YTD
12 Mos
94.34
0.1%
-0.5%
4.5%
17.5%
CAD/USD
0.80
-0.6%
1.6%
-7.3%
-11.4%
USD/CAD
1.25
0.7%
-1.6%
7.9%
12.9%
EUR/USD
1.14
-0.1%
0.8%
-5.9%
-17.0%
GBP/USD
1.54
0.0%
2.2%
-1.2%
-7.5%
AUD/USD
0.78
1.1%
1.1%
-4.0%
-12.9%
YTD
USD/CHF
0.94
0.8%
2.1%
-5.5%
5.6%
1.5%
-9.1%
USD/JPY
119.06
0.3%
1.3%
-0.6%
16.4%
-2.2%
-6.4%
Silver (spot $/oz)
Rate
MTD
1,202.07
12 Mos
Currencies
16.24
-6.4%
-5.9%
3.4%
-25.6%
EUR/JPY
135.51
0.1%
2.2%
-6.4%
-3.4%
5,766.25
0.2%
4.1%
-9.4%
-19.9%
EUR/GBP
0.74
-0.1%
-1.4%
-4.8%
-10.3%
Oil (WTI spot/bbl)
50.34
-4.6%
4.4%
-5.5%
-51.1%
EUR/CHF
1.07
0.7%
2.9%
-11.1%
-12.3%
Oil (Brent spot/bbl)
60.12
-2.3%
13.5%
4.9%
-45.5%
USD/SGD
1.36
0.4%
0.4%
2.6%
7.6%
2.95
5.1%
9.5%
2.0%
-51.4%
USD/CNY
6.26
0.3%
0.1%
0.8%
2.8%
310.76
-0.6%
4.2%
-3.6%
-17.2%
USD/BRL
2.87
1.2%
7.0%
8.0%
21.1%
Copper ($/metric ton)
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 9:33 pm GMT 2/20/15.
Examples of how to interpret currency data: CAD/USD 0.80 means 1 Canadian dollar will buy 0.80 U.S. dollar. CAD/USD -11.4% return means the Canadian dollar fell 11.4% vs. the
U.S. dollar year to date. USD/JPY 119.06 means 1 U.S. dollar will buy 119.06 yen. USD/JPY 16.4% return means the U.S. dollar rose 16.4% vs. the yen year to date.
U P CO M I N G EV E N TS
MON, FEB 23
WED, FEB 25
THU, FEB 26, cont.
THU, MAR 5
Germany IFO surveys
Fed’s Yellen testifies before House
Canada CPI (0.8% y/y, 2.1% y/y)
ECB meeting
U.S. Chicago Fed Nat’l Activity (0.05)
THU, FEB 26
FRI, FEB 27
BoE meeting
TUE, FEB 24
Japan Industrial Prod. (3.2% m/m)
Germany CPI (-0.2% y/y)
China HSBC Manuf. PMI (49.5)
Japan CPI (2.4% y/y, Core 2.1% y/y)
U.S. Q4 GDP revision (2.1% q/q ann.)
Eurozone CPI (-0.6% y/y, Core 0.6%)
U.K. Q4 GDP revision (2.7% y/y)
WED, MAR 4
Germany Q4 GDP revision (0.7% q/q)
U.S. Durable Goods (1.6% m/m)
BoC meeting
Fed’s Yellen testifies before Senate
U.S. CPI (-0.1% y/y, Core 1.6% y/y)
All data reflect Bloomberg consensus forecasts where available
GLOBAL INSIGHT WEEKLY
February 20, 2015
5
AUTHORS
Craig Bishop – Minneapolis, United States
[email protected]; RBC Capital Markets, LLC.
Kelly Bogdanov – San Francisco, United States
[email protected]; RBC Capital Markets, LLC.
Patrick McAllister – 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.
Alana Awad – Toronto, Canada
[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
[email protected]; Royal Bank of Canada Investment Management (UK) Ltd.
Jay Roberts – Hong Kong, China
[email protected]; RBC Dominion Securities Inc.
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.
Non-U.S. Analyst Disclosure: Alana Awad, 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 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
Rating
Distribution of Ratings - RBC Capital Markets, LLC Equity Research
As of December 31, 2014
Investment Banking Services
Provided During Past 12 Months
Count
Percent
Count
Percent
Buy [Top Pick & Outperform]
Hold [Sector Perform]
Sell [Underperform]
897
686
112
52.92
40.47
6.61
290
137
6
32.33
19.97
5.36
Explanation of RBC Capital Markets, LLC Equity Rating System
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
and distribution. The content may have been based, at least in part, on material
provided by our third-party correspondent research services. Our third-party
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February 20, 2015
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