IN Focus - Portfolio Solutions Provide One-stop Investment Shopping

Your Members can invest in an RBC portfolio solution, which invests in a basket of mutual funds, providing a diversified mix of investments that are aligned with a plan member’s investment return expectations and risk tolerance. Depending on the solution, the portfolio can contain funds from RBC Asset Management or other leading third party mutual funds.

The Benefits

Portfolio solutions aren’t just convenient. They also offer a number of concrete investment benefits.

Effective diversification. With a single investment decision, your plan members can have their investments automatically diversified. Historically, diversification has helped reduce risk and smooth out the volatility that occurs in investment returns. Because portfolio solutions maintain a diversified exposure to different countries and industry sectors, they reduce the impact of a downturn in one particular sector, asset class or region. Portfolio solutions can also help plan members avoid the holdings overlap that can occur when investing in multiple individual funds.

Enhanced investment discipline. Portfolio solutions are rebalanced on a regular basis, ensuring proper exposure to different asset classes. They also replace emotion with discipline when it comes to investment decisions, helping plan members to avoid the most common investor mistake of “buying high and selling low.” Portfolio solutions also help investors avoid making rash decisions based on short-term market events and keep them focused on the long-term.

Reflection of current market trends. The current RBC Asset Management investment outlook is incorporated into the investment products we offer, thereby keeping plan member investments on top of current investment trends.

Range of choices

To meet the diverse needs of different types of investors, RBC Asset Management offers a number of portfolio solutions. Here’s a quick look.

• RBC Select Portfolios. This fund-of-funds solution is based on a selection of RBC mutual funds. Plan members can choose from one of three portfolios, depending on their goals and risk tolerance: RBC Select Conservative Portfolio, RBC Select Balanced Portfolio, and RBC Select Growth Portfolio.
• RBC Select Choices Portfolios. This fund-of-funds solution contains both RBC and third-party mutual funds. Plan members can choose from RBC Select Choices Conservative Portfolio, RBC Select Choices Balanced Portfolio, RBC Select Choices Growth Portfolio, and RBC Select Choices Aggressive Growth Portfolio.
  
  All RBC Select Portfolios and RBC Select Choices Portfolios feature professional management, strategic asset allocation, automatic rebalancing, ongoing monitoring and review of underlying mutual funds, as well as diversification by management style, geographic sector, and market capitalization. In addition, RBC Select Portfolios are diversified by mutual fund company and the holdings are subject to an independent, defined, and rigorous fund selection process.
• RBC Cash Flow Portfolios. For plan members who require income from their investments, these professionally managed, all-in-one investment solutions are an excellent choice. RBC Cash Flow Portfolios invest in a diversified portfolio of income, balanced, and equity mutual funds that generate distributions from a variety of sources — helping to reduce risk and deliver regular, tax-efficient cash flow. RBC Cash Flow Portfolios provide all the benefits of a diversified portfolio approach and are designed to provide regular cash flow from non-registered accounts.

A diversified portfolio can prepare you for whatever happens in the market by managing risk and smoothing out potential returns. Read our Educational Overview on the Benefits of Diversification