RBC O'Shaughnessy Funds
Why does the RBC O'Shaughnessy U.S. Value Fund hedge currency exposure?
Jim
O'Shaughnessy's unique investment approach was originally based on back-tested analysis of U.S. markets from the perspective of a U.S. investor holding U.S. dollars. Because exchange rate impacts were not initially incorporated into his strategies, exposure to currency movements was eliminated when his approach was brought to Canada.
The following table approximates how the returns of the RBC O'Shaughnessy U.S. Value Fund have been impacted by fluctuations in the Canadian dollar. Although a strengthening Canadian dollar boosted returns between 2002 and 2005, a falling dollar negatively impacted performance in 2000 and 2001.
Impact on Returns of the RBC O'Shaughnessy U.S. Value Fund Due to Fluctuations in the Canadian Dollar
| 2006 |
17.0% |
Down 0.3% |
17.3% |
| 2005 |
1.2% |
Up 3.3% |
(2.1%) |
| 2004 |
15.5% |
Up 7.3% |
8.2% |
| 2003 |
26.2% |
Up 17.5% |
8.7% |
| 2002 |
(5.9%) |
Up 1.3% |
(7.2%) |
| 2001 |
5.7% |
Down 6.3% |
12.0% |
| 2000 |
9.4% |
Down 3.7% |
13.1% |
RBC O’Shaughnessy U.S. Value Fund - Performance
Read more about the Impact of Exchange Rates and Currency Hedging.
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The indicated rates of return are the historical
annual compounded total returns for Series A units for the period ended
December 31, 2006 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. The information contained
on this web page is compiled from sources believed to be reliable, but
no representation or warranty, expressed or implied, is made to its
accuracy. All opinions contained on this web page are current to
December 31, 2006, are subject to change without notice and are
provided in good faith without legal responsibility. Please consult
your advisor and read the prospectus before investing. There may be
commissions, trailing commissions, management fees and expenses
associated with mutual fund investments. Mutual funds are not guaranteed,
their values change frequently and past performance may not be repeated.
RBC Funds are offered by RBC Asset Management Inc. and distributed through
authorized dealers.
