RBC Select Portfolios and RBC Select Choices Portfolios
We have adjusted the asset class target weightings for the RBC Select Portfolios and the RBC Select Choices Portfolios to more closely align them with the RBC Asset Management overall long term outlook for the global economy and capital markets. The addition of the specified funds will enable the portfolio manager to achieve greater diversification for investors. As well, we have increased the range for target asset mix weightings to ±15% (from ±10%) for the fixed income asset class.
RBC Select Portfolios. The asset class target weightings will change August 1, 2006, for each RBC Select Portfolio as follows:
| |
RBC Select Conservative Portfolio |
RBC Select Balanced Portfolio |
RBC Select Growth Portfolio |
| Asset Class |
Target Weighting |
Target Weighting |
Target Weighting |
| Current |
New |
Current |
New |
Current |
New |
| Fixed Income |
60% |
65% |
40% |
45% |
20% |
25% |
| Canadian equities |
16% |
15% |
24% |
20% |
32% |
27% |
| U.S. equities |
16% |
10% |
24% |
20% |
32% |
27% |
| International equities |
8% |
10% |
12% |
15% |
16% |
21% |
In addition to the change in the target weightings, the following four funds will be added to the list of eligible funds for each portfolio:
- RBC Canadian Diversified Income Trust Fund
- RBC North American Dividend Fund
- RBC U.S. Equity Currency Neutral Fund
- RBC U.S. Mid-Cap Equity Currency Neutral Fund
A complete list of eligible funds is available in the 2006 RBC Funds Simplified Prospectus.
RBC Select Choices Portfolios. The asset class target weightings will change August 1, 2006, for each RBC Select Choices Portfolio as follows:
| |
RBC Select Choices Conservative Portfolio |
RBC Select Choices
Balanced Portfolio |
RBC Select Choices
Growth Portfolio |
RBC Select Choices Aggressive Growth Portfolio |
| Asset Class |
Target Weighting |
Target Weighting |
Target Weighting |
Target Weighting |
| Current |
New |
Current |
New |
Current |
New |
Current |
New |
| Fixed Income |
60% |
65% |
40% |
45% |
20% |
25% |
0% |
0% |
| Canadian equities |
16% |
15% |
24% |
20% |
32% |
27% |
40% |
35% |
| U.S. equities |
16% |
10% |
24% |
20% |
32% |
27% |
40% |
35% |
| International equities |
8% |
10% |
12% |
15% |
16% |
21% |
20% |
30% |
In addition to the change in the target weightings, the following four funds will be added to the list of eligible funds for each portfolio:
- RBC U.S. Equity Currency Neutral Fund
- RBC U.S. Mid-Cap Equity Fund
- RBC U.S. Mid-Cap Equity Currency Neutral Fund
- RBC O’Shaughnessy International Equity Fund
A complete list of eligible funds is available in the 2006 RBC Funds Simplified Prospectus.
RBC Cash Flow Portfolios
Effective August 28, 2006, the RBC Canadian Diversified Income Trust Fund will be added to the list of underlying funds in which the RBC Cash Flow Portfolio and RBC Enhanced Cash Flow Portfolio may invest. The addition of the fund will enable the portfolio manager to access a broader base of investment opportunities and achieve greater diversification.
RBC Target Education Funds
Effective August 1, 2006, the RBC U.S. Equity Currency Neutral Fund and the RBC U.S. Mid-Cap Equity Currency Neutral Fund will be added to the list of underlying funds for the RBC Target 2010 Education Fund, the RBC Target 2015 Education Fund, and the RBC Target 2020 Education Fund. The addition of these funds will allow the portfolio manager to achieve greater diversification and access a broader range of investment opportunities.
RBC Life Science and Technology Fund
Effective July 4, 2006, the investment strategy of the RBC Life Science and Technology Fund was amended to permit the portfolio manager to invest without restriction in technology and life sciences companies. Previously, the fund maintained at least a 30% weighting in each of the technology and life sciences sectors.
Fund name changes
In addition, as of July 4, 2006, the names of the following funds were changed:
| Current name |
New name |
| RBC Dividend Fund |
RBC Canadian Dividend Fund |
| RBC Global Health Sciences Sector Fund |
RBC Global Health Sciences Fund |
| RBC U.S. RSP Index Fund |
RBC U.S. Index Currency Neutral Fund |
| RBC International RSP Index Fund |
RBC International Index Currency Neutral Fund |
RBC Funds Unitholder Meeting
RBC Mutual Fund Unitholders have approved changes to certain RBC Mutual Funds. The changes were effective July 4, 2006.
“We are very pleased that unitholders have approved the following changes to the RBC Funds,” said Brenda Vince, president, RBC Asset Management Inc. “We are committed to ensuring that our products continually address the needs of investors and help them to achieve their goals. These changes will simplify the RBC Funds lineup and provide investors with a broader range of investment opportunities beyond Canada’s borders.”
The changes approved are as follows:
- RBC Balanced Growth Fund. Unitholders approved the amendment to the fund’s investment objective, permitting it to invest in equity and fixed income securities in Canadian, U.S., and international markets.
- RBC Blue Chip Canadian Equity Fund. Unitholders approved the amendment to the fund’s investment objective, permitting it to invest in Canadian and U.S. equities with above average dividend yields. The fund will be renamed the RBC North American Dividend Fund to reflect the change.
- RBC Canadian Value Fund. Unitholders approved the amendment to the fund’s investment objective, permitting it to invest in Canadian and U.S. value stocks. The fund will be renamed the RBC North American Value Fund to reflect the change.
- RBC Canadian Growth Fund. Unitholders approved the amendment to the fund’s investment objective, permitting it to invest in Canadian and U.S. growth stocks. The fund will be renamed the RBC North American Growth Fund to reflect the change.
- RBC Energy Fund. Unitholders approved the amendment to the fund’s investment objective, permitting it to invest in energy and energy-related companies in Canadian, U.S., and international markets. The fund will be renamed the RBC Global Energy Fund to reflect the change.
- RBC Precious Metals Fund. Unitholders approved the amendment to the fund’s investment objective, permitting it to invest in precious metals and precious metals-related companies in Canadian, U.S., and international markets. The fund will be renamed the RBC Global Precious Metals Fund to reflect the change.
- RBC Global Financial Services Sector Fund. Unitholders approved the amendment to the fund’s investment objective to include equity securities of companies around the world that develop, manufacture, and/or distribute consumer goods and services. The fund will be renamed the RBC Global Consumer and Financials Fund to reflect the change.
- RBC Global Resources Sector Fund. Unitholders approved the amendment to the fund’s investment objective to include equity securities of companies around the world that develop, design or provide materials, products, and services significant to the infrastructure of a country or region. The fund will be renamed the RBC Global Resources Fund to reflect the change.
- RBC Global Technology Sector Fund. Unitholders approved the amendment to the fund’s investment objective to include equity securities of companies around the world that are involved in the Information technology and telecommunications industries. The fund will be renamed the RBC Global Technology Fund to reflect the change.
- Merger of the RBC Global Balanced Fund into the RBC Balanced Growth Fund. Unitholders in the RBC Global Balanced Fund will have their units exchanged for units in the RBC Balanced Growth Fund on a tax-deferred basis.
Merger of the RBC Global Education Fund into the RBC Target 2015 Education Fund. The investment objective of the RBC Target 2015 Education Fund will remain unchanged. Unitholders in the RBC Global Education Fund will have their units exchanged for units in the RBC Target 2015 Education Fund on a tax-deferred basis.
