Fund Profile: RBC Target Education A
RBC O'Shaughnessy US Value GIF Series 1 (F0CAN06YM9) Fund Fonds – Morningstar fund Portfolio Date/08/, Price data delayed 15 ~ 30 minutes. % of the market value on the maturity guarantee date; or b. RBC O' Shaughnessy All-Canadian Equity GIF RBC North American Growth GIF are available once per calendar year with RBC Guaranteed Investment Funds Series 2 only. RBC O'Shaughnessy U.S. Value Fund periods of time. Fund Category U.S. Equities; Inception Date Aug 13, Download fund details. Fund details. Series.
Funds that invest in companies or markets with higher credit risk tend to be more volatile in the short term. However, they may offer the potential of higher returns over the long term. Currency risk Most funds are valued in Canadian dollars. However, funds that purchase foreign securities may be required to pay for such securities using a foreign currency and receive a foreign currency when they sell them.
Such funds may also purchase foreign currencies as investments. As a result, changes in the value of the Canadian dollar compared to foreign currencies will affect the value, in Canadian dollars, of any foreign securities or foreign currencies in a fund. For example, if the Canadian dollar rises relative to the U.
This decline in value may reduce, or even eliminate, any return the fund has earned. Currency exposure may increase the volatility of foreign investments relative to Canadian investments. Some funds may hedge protect against the risk of changes in foreign currency exchange rates of the underlying assets of the fund.
For mutual funds denominated in U. As a result, when you redeem units in a U. Consequently, all investment income will be reported to you in Canadian dollars for income tax purposes. In each of the cases above, changes in the value of the Canadian dollar relative to the U. You may want to consult your tax advisor. Cyber security risk As the use of technology has become more prevalent in the course of business, mutual funds like the funds have become potentially more susceptible to operational risks through breaches in cyber security.
A breach in cyber security refers to both intentional and unintentional events that may cause a fund to lose proprietary information or other information subject to privacy laws, suffer data corruption, or lose operational capacity. Cyber security breaches may involve unauthorized access to a fund s digital information systems e. In addition, cyber security breaches of a fund s third-party service providers e.
Like with operational risk in general, the funds have established risk management systems designed to reduce the risks associated with cyber security. However, there is no guarantee that such efforts will succeed, especially since the funds do not directly control the cyber security systems of issuers or third-party service providers. Derivative risk A derivative is a type of investment whose value is derived from the performance of other investments or from the movement of interest rates, exchange rates or market indices.
The funds may use derivatives as permitted by the Canadian Securities Administrators CSA as long as their use is consistent with the individual fund s investment objectives. A fund cannot use derivatives for speculative trading or to create a portfolio with excess leverage.
If a fund uses derivatives, securities regulations require that the fund hold enough assets or cash to cover its commitments in the derivative contracts. This limits the amount of losses that could result from the use of derivatives. The most common types of derivatives are: The most common type is an interest rate swap.
Party A agrees to pay Party B a fixed amount based on a pre-set interest rate. Derivatives can help a mutual fund achieve its investment objectives and may be used in three different ways: A portfolio manager may take the view that a currency will underperform or overperform another currency over a period of time and use currency forwards to take on currency exposure on a short- or long-term basis.
Derivatives have their own special risks. Here are some of the common ones: If, for example, a stock exchange imposes trading limits, it could affect the ability of a mutual fund to close out its position in derivatives. This type of event could prevent a mutual fund from making a profit or limiting its losses.
Foreign investment risk The funds may invest in companies that operate or are listed on stock exchanges in countries other than Canada. Investments in these companies may be affected by global economic and political factors, as well as the economic and political factors of the particular country or geographic region in which the issuer operates. Many countries have less stringent accounting, auditing and reporting standards than we do in Canada. Some foreign stock markets have less trading volume, which may make it more difficult to sell an investment or make prices more volatile.
Certain countries may also have foreign investment or exchange laws that make it difficult to sell an investment or may impose withholding or other taxes that could reduce the return on the investment. Different financial, political and social factors could hurt the value of foreign investments, and companies operating in foreign markets may have limited product lines, markets or resources available to them.
RBC O'Shaughnessy US Value Sr D (F0CAN07226.TO)
As a result, mutual funds that specialize by investing in securities of companies that are listed on stock exchanges in countries other than Canada, or in companies that operate in countries other than Canada, may experience larger and more frequent price changes in the short term.
The risks of foreign investments are generally higher in emerging markets. Interest rate risk If a fund invests primarily in bonds and other fixed-income securities, the biggest influence on the fund s value will be changes in the general level of interest rates. If interest rates fall, the value of the fund s units will tend to rise. If interest rates rise, the value of the fund s units will tend to fall.
RBC Guaranteed Investment Funds
Depending on a fund s holdings, short-term interest rates can have a different influence on a mutual fund s value than long-term interest rates. If a mutual fund invests primarily in bonds and other fixed-income securities with longer-term maturities, the biggest influence on the mutual fund s value will be changes in the general level of long-term interest rates.
If a mutual fund invests primarily in bonds and other fixed-income securities with shorter-term maturities, the biggest influence on the mutual fund s value will be changes in the general level of shorter-term interest rates. If you are seeking current income, you should be aware that the level of interest income from a money market fund will fluctuate as short-term interest rates vary. As a result, if a single issuer s securities represent a significant portion of the market value of a fund s assets, changes in the market value of that issuer s securities may cause greater fluctuations in the fund s unit value than would normally be the case.
A less-diversified fund may also suffer from reduced liquidity if a significant portion of its assets is invested in any one issuer. In particular, the fund may not be able to easily liquidate its position in the issuer as required to fund redemption requests. This restriction does not apply to investments in debt securities issued or guaranteed by the Canadian or U.
As the index weighting of an individual company increases, any increase or decrease in its value will have a greater impact on a fund s net asset value and total return.
Large investor risk The securities of a fund, including an underlying fund, may be held in significant percentages by an investor, including another mutual fund. In order to meet purchase and redemption requests by the investor, the fund may have to alter its holdings significantly and purchase or sell investments at unfavourable prices.
This can reduce the returns of the fund. If a fund experiences a loss restriction event i the fund will be deemed to have a taxation year-end for tax purposes, and ii the fund will become subject to the loss restriction rules generally applicable to corporations that experience an acquisition of control, including a deemed realization of any unrealized capital losses and restrictions on their ability to carry forward losses.
Generally, a fund will be subject to a loss restriction event when a person becomes a majority-interest beneficiary of the fund, or a group of persons becomes a majority-interest group of beneficiaries of the fund, as those terms are defined in the affiliated persons rules contained in the Income Tax Act Canadawith appropriate modifications. The Income Tax Act Canada will generally provide relief from the potential application of the loss restriction event rules to a fund that is an investment fund as defined therein.
Liquidity risk Liquidity refers to the speed and ease with which an asset can be sold and converted into cash. Most securities owned by mutual funds can be sold easily and at a fair price. In highly volatile markets, such as in periods of sudden interest rate changes, certain securities may become less liquid, which means they cannot be sold as quickly or easily.
Some securities may be illiquid because of legal restrictions, the nature of the investment, certain features, like guarantees or a lack of buyers interested in the particular security or market. Difficulty in selling securities may result in a loss or reduced return for a fund. Market risk Market risk is the risk of being invested in the equity and fixed-income markets.
The market value of a fund s investments will rise and fall based on specific company developments and broader equity or fixed-income market conditions. Market value will also vary with changes in the general economic and financial conditions in countries where the investments are based. Multiple series risk Most of the funds are available in more than one series of units. Each series has its own fees and expenses, which are tracked separately.
RBC O'Shaughnessy U.S. Value Fund Series O - NL (CADFUNDS: PHNCF) Quote - The Globe and Mail
Those expenses will be deducted in calculating the unit value for that series, thereby reducing its unit value. If one series is unable to pay its expenses or liabilities, the assets of the other series will be used to pay those expenses or liabilities. As a result, the unit price of the other series may also be reduced.
Please see Purchases, switches and redemptions on page and Fees and expenses on page for more information regarding each series and how their unit value is calculated.
These funds are intended to generate a regular cash flow while also managing the impact on invested capital. Payout risk is the risk that the dollar amount of your cash flow will change due to capital market conditions. For example, if the fund s calendar rate of return is less than the payout rate, then the dollar amount of the monthly distribution may decrease the following year.
Additionally, the monthly distribution amount may also be adjusted during the year, without prior notification, if capital market conditions have significantly affected the ability to maintain the payout rate for the fund. Quantitative investment strategies use complex statistical models in an effort to control portfolio-level risk and to select individual stocks.
Rigorous risk control and a disciplined approach to stock selection are defining characteristics of quantitative investment strategies. Although these are generally considered positive characteristics, they also introduce unique risks. The mathematical and statistical models that guide risk control and disciplined stock selection are reliant on historical data.
When markets behave in an unpredictable manner, quantitative models can generate unanticipated results that may impact the performance of a fund.
RBC Segregated Funds | Savii Financial
Securities lending, repurchase and reverse repurchase transaction risks Certain of the funds may enter into securities lending arrangements and repurchase and reverse repurchase transactions in accordance with the rules of the CSA. Securities lending, repurchase and reverse repurchase transactions may be entered into to generate additional income or as a short-term cash management tool to enhance the net asset value of a fund. In a securities lending transaction, a fund lends its securities to a borrower in exchange for a fee.
A repurchase agreement takes place when a fund sells a security at one price and agrees to buy it back later from the same party at a higher price. The difference between 8 the higher price and the original price is like the interest payment on a loan. A reverse repurchase agreement is the opposite of a repurchase agreement and occurs when the fund buys a security at one price and agrees to sell it back to the same party at a higher price.
Each Fund pays an annual management fee in respect of each Series that is a fixed percentage of the net assets of the Fund attributable to the Series. The Filer has previously determined that the annual management expense ratio MER in respect of the Advisor Series Units of each Fund will not exceed a specified percent.
If the operating expenses and management fees in respect of Advisor Series Units would result in an MER in excess of the specified percent, then the Filer absorbs the excess expenses.
The Filer is proposing to change the basis of calculating the operating expenses that are charged to a Fund by establishing a fixed administration fee in respect of the Advisor Series Units of each Fund.
The Filer will be responsible for and pay the Fund's actual operating expenses and these expenses will not be charged to the Fund. The fee will be an annual percentage based on the daily net assets of the Advisor Series Units of the Fund.
Excluded from the fixed administration fee will be taxes including, but not limited to GSTborrowing costs, costs associated with new government or regulatory requirements and costs of a Fund's independent review committee. The fixed administration fee will be charged on the same basis as the management fee. Costs associated with portfolio transactions, including brokerage commissions, research and execution costs are not currently included in operating expenses or the calculation of a Fund's MER.
These costs will continue to be charged to each Fund and will not be included in the fixed administration fee. The fixed administration fee that will be charged in respect of operating expenses of Advisor Series Units of each Fund will result in an MER that will be lower than the actual percentage for the financial year ended December 31, except in the case of the New Funds which have not completed a financial year.
However, it is possible that the change to the basis of calculating the operating expenses could result in an increase in charges that would have otherwise been payable by the Advisor Series Units of each Fund. This is because while the Filer will bear the costs of any increase in operating expenses, it may in turn benefit from any future cost efficiencies.
The Filer is proposing to make similar changes to the basis of calculating the operating expenses that are charged in respect of all other Series of the Funds and of other mutual funds that are managed by the Filer. Notice of Change to Security Holders A change in the basis of calculating the operating expenses in respect of Series A, Series F, Series I and Series O Units of the Funds or of other mutual funds that are managed by the Filer does not require security holder approval pursuant to paragraph 5.
These requirements in respect of Units other than Advisor Series Units will be satisfied in that: Advisor Series Units of the Funds and of other mutual funds that are managed by the Filer are not distributed on a "no-load" basis.