Frequently Asked Questions
We've provided answers to some of the most frequently asked questions about the RBC Managed Portfolios Program:
What is the overall process for the program?
The process begins by looking at the big picture -- your financial needs, lifestyle, investing preferences, investment time horizon and tolerance for risk. Based on your investment objectives, your RBC financial planner will recommend an RBC Managed Portfolios investment profile. After selecting your profile, your money is invested in RBC Private Pools, the building blocks of your portfolio.
For additional details, please review: How the RBC Managed Portfolios Program Works.
Note: If you don’t already have a financial planner at RBC, you will
be introduced to one. Visit your local RBC Royal Bank branch or call 1-800
ROYAL® 1-1 (1-800-769-2511).
What is the program's investment approach?
When markets are volatile, it is easy to let your emotions dictate your investment
decisions - and that can hurt your
long-term returns. As a result, we use a disciplined approach to research the
markets, construct your portfolio, select your investments and rebalance your
portfolio when necessary.
What are RBC Private Pools? How do they differ from mutual funds?
Once you have selected your RBC Managed Portfolios investment profile, your money
is invested in RBC Private Pools. Although similar to mutual funds, RBC Pooled
Funds differ in that:
- Their investment mandates are more focused with fewer holdings
- They have higher minimum investment requirements
- They are only available to select RBC clients through programs like RBC Managed Portfolios
How will my portfolio be managed?
RBC Asset Management manages your investments in accordance with the RBC
Managed Portfolios investments profile you select. The investment
profiles are monitored closely to ensure they remain suitably invested and, properly
diversified.
The RBC Investment Strategy Committee, chaired by
Dan Chornous,
Chief Investment Officer of RBC Asset Management, is a team of top investment
professionals at RBC Financial
Group. The committee meets quarterly to formulate
a detailed
global investment forecast. This forecast is used to determine the appropriate
mix of investments for each RBC Managed Portfolios investment profile.
How do I stay informed about my investments?
In addition to reviewing your account balance and portfolio holdings with RBC
Online
Banking,
you
can
stay up-to-date through:
- Annual meetings (at minimum) with your RBC financial planner, on a schedule that is comfortable for you
- The RBC Managed Portfolios web site, which provides updates for market activity, the economy and the investment profiles
- Your comprehensive quarterly statement, which outlines your account and the activity that has occurred
How are fees structured?
The tiered-fee structure of the program means that the percentage fee you pay decreases as your investments in the program grow.
Plus, fees are based on your total household investments in the program, which
can include RBC Managed Portfolios accounts held by you, your spouse, child
or even your personal holding company - as long as all of the accounts share
the
same address.
An additional potential advantage is the tax deductibility of investment management
fees for non-registered accounts. Consult your tax advisor regarding the tax
deductibility of RBC Managed
Portfolios investment management fees.
Why is there a change in my personal rate of return between my
December 31, 2006, and March 31, 2007, statements?
One key objective of the new statement is to enhance the
reporting of your personal rates of return (by moving from a monthly
to a daily calculation method). RBC Asset Management is committed to
providing RBC Managed Portfolios clients with personal rates of return
and remains one of the few firms in the industry to offer clients this
level of personal reporting. We consider this level of client reporting
an important element of the RBC Managed Portfolios program.
Since converting to this enhanced reporting method, we've received
questions from clients related to the personal rates of return appearing
on page one of their statement. A complete analysis of these figures and
all other statement calculations has been completed and confirms the
following:
- On page one, personal rates of return reported on a 3 month and
year-to-date basis are accurate. We have identified on many client
statements that personal rates of return on a 1 year, 2 year and
"Since Inception" basis are understated.
- All other parts of your March 31st statement are accurate,
including all dollar amounts related to your account (e.g. balances,
transaction values).
- This issue is unique to your March 31st statement. All information
reported on your previous statements is accurate, including your personal
rates of return.
Talk to an RBC Investment Specialist
To learn more, talk to your RBC financial planner, visit your local RBC Royal Bank
branch or call 1-800 ROYAL® 1-1 (1-800-769-2511).
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