RBC Private U.S. Large-Cap Value Equity Pool

Printed on June 22, 2015
RBC Private U.S. Large-Cap Value Equity Pool
Investment Objective
Portfolio Analysis as of May 31, 2015
To provide long-term total returns primarily through
capital appreciation by investing in common stocks and
equivalent securities of U.S. corporations trading below
their potential intrinsic value.
Asset Mix
32
33
13
7
10
3
1
0
0
P/B Ratio
P/E Ratio
> 50
25 - 50 P/FCF
10 - 25 P/S
0 - 10
Avg. Mkt Cap. $B
Dividend Yield
Weight %
Value Blend Growth
Series
Currency
Fund Code
O
O
CAD
USD
RBF10275
RBF10175
Inception Date
Total Fund Assets $Mil
Benchmark
August 2003
355.2
Russell 1000 Value Index
(C$)
Management Company
RBC Global Asset
Management Inc.
www.rbcgam.com
Web Site
Equity Statistics
Large
Fund Details
Equity Style
Small Mid
The investment team undertakes universe screening,
fundamental analysis and valuation analysis as part of
its security selection process. Preferred companies for
investment tend to exhibit free cash-flow yield and
return on equity greater than the benchmark and lower
debt to equity levels than the benchmark. The portfolio
will follow a focused investment strategy and will
normally contain 40 to 60 selected stocks that are well
diversified across industry sectors.
% Assets
Cash
0.5
Fixed Income
0.0
Canadian Equity
0.0
US Equity
99.5
International Equity 0.0
Other
0.0
Top 5 Equity Sectors
2.3
17.3
11.3
1.6
62.5
2.0
% Equity
Financials
Consumer Discretionary
Health Care
Industrials
Information Technology
% in Top 5 Equity Sectors
21.7
15.7
15.1
13.3
11.1
76.9
Risk Measures
Fund
Benchmark
3 Year Std Dev
5 Year Std Dev
7.5
9.2
7.6
8.8
Notes
Pool sub-advisor changed in July 2009. Fund name
changed effective August 19, 2013. Fund was previously
known as RBC Private U.S. Value Equity Pool.
Performance Analysis is in CAD and for CAD series O
fund (RBF10275).
Top 25 Holdings
% Assets
Wells Fargo & Co
JPMorgan Chase & Co
Amdocs Ltd
Becton Dickinson & Co
Bank of America Corporation
3.7
3.6
3.1
3.0
2.9
Johnson & Johnson
Apple Inc
Aetna Inc
Cigna Corp
McCormick & Company Inc Non-Voting
2.9
2.7
2.7
2.3
2.2
Abbott Laboratories
JM Smucker Co
NextEra Energy Inc
eBay Inc
Hartford Financial Services Group Inc
2.2
2.1
2.1
2.1
2.1
DST Systems, Inc.
Comcast Corp Class A
Honeywell International Inc
Cardinal Health Inc
Home Depot Inc
2.1
2.1
2.1
2.0
2.0
General Mills Inc
Verizon Communications Inc
Time Warner Inc
Target Corp
Invesco Ltd
2.0
2.0
2.0
2.0
2.0
Total % of Top 25 Holdings
Total Number of Stock Holdings
Total Number of Bond Holdings
Total Number of Other Holdings
Total Number of Holdings
60.0
49
0
1
50
Performance Analysis as of May 31, 2015
220
190
160
Growth of $100,000
Series O
$177,090
130
100
70
40
40
20
Calendar Returns %
Series O
0
-20
-40
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
YTD
-3.5
3.6
25.7
15.0
-17.7
-10.3
-28.2
-21.9
5.8
9.1
6.6
10.0
2.0
4.0
13.8
13.8
38.7
42.0
23.3
23.4
10.4
11.7
Fund
Benchmark
1 Mth
3 Mth
6 Mth
1 Yr
3 Yr
5 Yr
10 Yr
Since Incep. Trailing Return %
4.6
4.4
0.8
0.7
12.5
13.2
27.8
28.6
27.4
27.7
19.2
20.7
5.6
8.3
5.2
—
Fund
Benchmark
©2015. Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. These pages are not complete without the disclosure
page.
Printed on June 22, 2015
RBC Private U.S. Large-Cap Value Equity Pool
Management Overview
Manager Bios
Performance Analysis Cont'd as of May 31, 2015
Westwood Management Corp
Distributions ($)/Unit
YTD*
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Westwood Management Corp. (Westwood) was
established in 1983 with a focus on serving institutional
clients. The firm is a wholly-owned subsidiary of
Westwood Holdings Group (NYSE: WHG), a publicly
traded New York Stock Exchange corporation. The firm
manages over US$20 billion in U.S. Value equity and
Global/Emerging Markets assets.
Total Distributions
Interest
Dividends
Capital Gains
Return Of Capital
0.98
0.98
—
—
—
3.17
3.17
—
—
—
2.53
2.53
—
—
—
2.13
2.13
—
—
—
4.57
4.57
—
—
—
1.60
1.60
—
—
—
2.36
2.36
—
—
—
3.99
3.98
—
—
—
6.34
4.24
—
2.10
—
7.94
7.95
—
—
—
3.17
3.17
—
—
—
Best/Worst Periods %
Ended
1 Yr
Ended
12-2013
5-2015
Best
38.7
1-2009
2-2009
Worst
-37.1
Average
5.8
No. of Periods
130
Pct. Positive
66.9
* Distributions are characterized into income type at year-end.
3 Yr
Ended
5 Yr
Ended
10 Yr
27.4
-16.6
4.7
106
57.5
5-2015
2-2009
19.2
-11.8
2.6
82
35.4
3-2015
8-2013
6.0
1.7
3.8
22
100.0
Quarterly Commentary as at March 31, 2015
The volatility that began in Q4 2014 persisted into
Q1 2015, creating a difficult environment for equity
investors. Weak commodity prices, led by stagnant
crude oil, concerns about global economic growth,
and the expectation of a Fed Funds rate hike cycle
beginning later this year, all led to greater
volatility and resulted in a small quarterly gain for
the broad stock market.
The portfolio’s relative performance was aided by
security selection in the Technology, Consumer
Staples, and Utilities sectors. Fundamentals in the
wireless semiconductor space remain healthy as
the “Internet of Things” trend continues to unfold
benefiting Skyworks Solutions and Amdocs.
Strong earnings reports and favorable trends in the
managed healthcare space helped drive shares of
Aetna and Cigna higher. Boeing outperformed
after reporting earnings results that highlighted
their improving free cash flow profile and massive
backlog of orders.
Stock selection in the Financial Services and
Consumer Discretionary sectors and an
underweight position in REITs detracted from
relative performance. Concerns over Bank of
America’s ability to return capital to shareholders
caused shares to underperform. A negative preannouncement by Kansas City Southern pressured
shares of Union Pacific late in the quarter. MSC
Industrial reported disappointing earnings and
guidance as sales have been growing slower than
expected due to low inflation. Shares of Capital
One Financial underperformed as earnings results
were impacted by higher marketing expenses that
offset strong loan growth and an improving net
interest margin. Viacom was impacted by negative
foreign exchange movements and industry-wide
softness in the advertising market.
©2015. Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. These pages are not complete without the disclosure
page.
Printed on June 22, 2015
RBC Private U.S. Large-Cap Value Equity Pool
Disclosure
RBC Private Pools are offered and distributed
by RBC Global Asset Management Inc. and
are also distributed by other authorized
dealers.
RBC Funds and RBC Corporate Class Funds
are offered by RBC Global Asset
Management Inc. and distributed through
authorized dealers.
Management fees and expenses all may be
associated with mutual fund investments.
Please read the prospectus or Fund Facts
document of the mutual fund before
investing. Except as otherwise noted, the
indicated rates of return are the historical
annual compounded total returns including
changes in unit value and reinvestment of all
distributions and do not take into account
sales, redemption, distribution or optional
charges or income taxes payable by any
unitholder that would have reduced returns.
Mutual funds are not guaranteed or covered
by the Canadian Deposit Insurance
Corporation or by any other government
deposit insurer. The value of mutual funds
change frequently and past performance may
not be repeated.
expressed on an annualized basis.
The Top Ten/25 Holdings may change due to
ongoing portfolio transactions within the
fund. The prospectus, Fund Facts document,
and other information about the underlying
investment funds are available at www.
sedar.com.
MER (%) for RBC Funds is based on actual
expenses for the full-year period, January 1
to December 31, 2014, expressed on an
annualized basis.
The fund profile is provided for informational
purposes only. Particular investments and/or
trading strategies should be evaluated
relative to each individual’s investment
objectives. The information contained in the
fund profile is not, and should not be
construed as, investment or tax advice. You
should not act or rely on the information
contained in the fund profile without seeking
the advice of an appropriate professional
advisor.
MER (%) for RBC Corporate Class Funds is
based on actual expenses for the full-year
period April 1, 2014 to March 31, 2015,
® / ™ Trademark(s) of Royal Bank of Canada.
Used under licence. © RBC Global Asset
Management Inc. 2015
Graphs are only used to illustrate the effects
of the compound growth rate and do not
reflect future values of any fund or returns on
investment of any fund.
©2015. Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. These pages are not complete without the disclosure
page.