RBC Managed Portfolios
Conservative investment profile
DECEMBER 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 helped by exposure to international and U.S.
equities, which were positive over the three months. The majority of global equity markets
were positive for the quarter, with many rallying from the volatility of the late summer and
early fall. The appreciation of the U.S. dollar relative to the Canadian dollar also added
to returns. The decline in Canadian equities related to lower oil prices and continued
deceleration in China’s growth detracted slightly from performance. Modest gains in both
Canadian and global bonds contributed positively to returns. Central banks continue to hold
short-term interest rates near zero in most of the developed world, with low inflation and slow
growth in Japan and Europe continuing to influence monetary policy. The U.S. Federal Reserve
was the exception and announced their decision to raise rates by 0.25% in December.
Fund Details
Profile inception date
Net assets
February 2000
$3,830.8 MM
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 remains 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%
100.0%
*Operating expenses and applicable taxes are not
included in the fee schedule above.
’000s
S&P 500 TR Index, (C$)**
150
MSCI EM Net Index, (C$)
December 31, 2015
$154,662
100
75
50
2005
** 25% hedged to C$.
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Calendar Returns† (%)
20
Sector Mix (% equities)
November 30, 2015
10
Financials
31.8%
0
Energy
10.8%
-10
Consumer Discretionary
10.7%
Consumer Staples
9.4%
Industrials
9.1%
Information Technology
7.9%
Health Care
7.8%
Materials
4.2%
Telecommunication Services
4.1%
Utilities
4.0%
Others
0.2%
-20
-30
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
6.6
7.1
0.8
-10.5
9.9
5.2
1.8
5.8
8.8
7.4
3.3
Trailing Returns† (%)
Profile
YTD
1 Mth
3 Mth
1 Yr
3 Yr
5 Yr
10 Yr
Since
inception
3.3
0.0
2.2
3.3
6.5
5.4
3.8
3.0
† Net of fees based on a minimum investment of $100,000.
THIS DOCUMENT IS NOT COMPLETE WITHOUT THE DISCLOSURE PAGE.
RBC Managed Portfolios – Conservative investment profile
Best/Worst Periods
December 31, 2015
1 Yr
Ended
3 Yr
Ended
5 Yr
Ended
10 Yr
Ended
Best return
15.5%
Feb-10
8.2%
Feb-12
7.9%
Feb-14
4.5%
Mar-15
Worst return
-13.1%
Feb-09
-5.0%
Mar-03
-0.1%
Feb-09
1.0%
Jun-10
Average return
3.2%
3.4%
3.4%
3.3%
Total periods
180
156
132
72
80.1%
98.5%
Positive periods 73.3%
Asset Mix (%)
13.1
Cash & Fixed Income
11.5
16.7
December 31, 2015
58.7
Canadian Equities
U.S. Equities
International Equities
100.0%
Profile Holdings (% of net assets)
December 31, 2015
CASH AND FIXED INCOME
Top 25 Holdings
November 30, 2015
58.7
Issuer
% Assets
1.2
Cash
1.8
RBC Private Short-Term Income Pool
11.0
Royal Bank of Canada
1.1
RBC Bond Fund
25.6
TD Bank
1.1
Cash
RBC Private Canadian Corporate Bond Pool
9.2
Bank of Nova Scotia
0.9
RBC Global Bond Fund
9.0
Prov of Ontario 3.450 Jun 02 45
0.8
RBC High Yield Bond Fund
2.7
Prov of Quebec 4.500 Dec 01 17
0.8
41.3
Prov of Ontario 2.900 Dec 02 46
0.8
EQUITIES
Canadian Equities
RBC Private Canadian Dividend Pool
U.S. Equities
16.7
Enbridge Inc
0.7
16.7
Brookfield Asset Mgt
0.7
11.5
Bank of Montreal
0.7
Cdn National Railway
0.6
0.6
RBC Private U.S. Large-Cap Core Equity Pool
2.0
RBC QUBE Low Volatility U.S. Equity Fund
2.0
Financement Que 3.500 Dec 01 16
1.9
Canada Govt 1.500 Jun 01 23
0.6
RBC Global Dividend Growth Fund (U.S. Holdings)
2.8
Canadian Imperial Bank of Commerce
0.6
RBC Global Equity Fund (U.S. Holdings)
2.8
Prov of Quebec 3.750 Sep 01 24
0.6
TD Bank B/A Nov 02 15
0.5
Prov of Ontario 2.600 Jun 02 25
0.5
Canada Housing Trust 3.350 Dec 15 20
0.5
National Bank B/A Nov 30 15
0.5
Nfld and Lab Hydro 4.300 Oct 13 16
0.5
Prov of Ontario 3.500 Jun 02 24
0.5
Manulife Financial Corp
0.5
Suncor Energy Inc
0.5
Bank of Montreal 2.840 Jun 04 20
0.5
Roche Holdings AG
0.4
RBC O’Shaughnessy U.S. Value Fund
International Equities
13.1
RBC European Equity Fund
4.3
RBC Asia Pacific Ex-Japan Equity Fund
1.9
RBC Japanese Equity Fund
1.3
RBC Global Dividend Growth Fund (Int'l Holdings)
2.8
RBC Global Equity Fund (Int'l Holdings)
2.8
TOTAL
100.0
Distributions (based on a minimum investment of $100,000 reset annually)
Total distributions
2015
2014
2013
2012
2011
$3,796
$4,731
$3,081
$3,240
$3,285
Interest
67%
64%
70%
64%
67%
Dividends**
13%
11%
30%
35%
32%
Capital gains
20%
25%
–
1%
1%
–
–
–
–
–
Return of capital
** May include dividends from foreign sources.
THIS DOCUMENT IS NOT COMPLETE WITHOUT THE DISCLOSURE PAGE.
Total % of Top 25 Holdings
17.3
RBC Managed Portfolios – Conservative investment profile
DISCLOSURE:
The indicated rates of return for the RBC Managed Portfolios investment profiles are the historical annual compounded total returns 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. 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 (Series O) and RBC Funds including changes in unit value and reinvestment of all distributions.
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 or RBC Funds 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. Underlying funds and pools pay
a fixed administration fee plus applicable taxes to RBC GAM for operating expenses, as outlined in the fees and expenses section of the RBC Funds
and RBC Private Pools prospectus. 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. 2016
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