UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21475
RBC Funds Trust
(Exact name of registrant as specified in charter)
50 South Sixth Street, Suite 2350
Minneapolis, MN 55402
(Address of principal executive offices) (Zip code)
Tara Tilbury
50 South Sixth Street, Suite 2350
Minneapolis, MN 55402
(Name and address of agent for service)
Registrant’s telephone number, including area code: (612) 376-7132
Date of fiscal year end: March 31
Date of reporting period: March 31, 2021
Item 1. Reports to Stockholders.
(a) The Report to Shareholders is attached herewith.
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RBC Funds
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About your Annual Report | This annual report includes detailed information about your Fund including financial statements, performance, and a complete list of its holdings.
The RBC Funds compare their performance against various indices. Each of these indices is a widely recognized measure of return for the underlying category of securities. However, the indices are unmanaged, do not include fees, and cannot be invested in directly.
We hope the financial information presented will help you evaluate your investment in the RBC Funds. We also encourage you to read your Fund’s prospectus for further detail as to your Fund’s investment policies and risk profile. RBC Funds prospectuses and performance information subsequent to the date of this report are available on our website at www.rbcgam.us.
A description of the policies and procedures that your Fund uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1-800-422-2766; (ii) on the Fund’s website at www.rbcgam.us; and (iii) on the Securities and Exchange Commission’s (the “Commission”) website at http://www.sec.gov.
Each year the Trust files its proxy voting record for the twelve-month period ended June 30 with the SEC on Form N-PX no later than August 31. The records can be obtained on the SEC’s website at www.sec.gov and without charge by calling the Funds at 1-800-422-2766.
A schedule of each Fund’s portfolio holdings is filed with the Commission for the first and third quarters of each fiscal year on Form N-PORT. This information is available on the Commission’s website at http://www.sec.gov and on the Funds’ website at www.rbcgam.us.
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Contents | Letter from the Portfolio Manager of Emerging Market Equities | 1 | ||||||||||
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Statement Regarding Liquidity Risk Management Program (Unaudited) | 92 | |||||||||||
LETTER FROM THE PORTFOLIO MANAGER OF EMERGING MARKETS EQUITIES
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Dear Shareholder:
Market Review
Financial markets staged an impressive comeback from pandemic-related losses in early 2020 amid unprecedented monetary and fiscal stimulus, and prospects for an economic recovery in many parts of the world. Emerging markets (EM), as a whole, trailed developed markets (DM), as poor stock performance in Brazil, Russia and Turkey offset strong equity returns in China, South Korea and Taiwan. Moreover, China, the world’s largest emerging market, lost ground in the first quarter of 2021 due to credit-growth concerns and the government’s signaling of earlier-than-expected tightening of fiscal and monetary policy. Emerging-market returns were also limited in early 2021 by a rise in U.S. 10-year bond yields, which made riskier assets less appealing to investors.
Portfolio Review – RBC Emerging Markets Equity Fund
For the 12-month period ended March 31, 2021, the Fund had an annualized total return of 55.77% (Class I). That compares to an annualized total return of 58.39% for the MSCI Emerging Markets Net Total Return USD Index, the Fund’s primary benchmark.
Historically, the Fund tends to outperform in down-market periods and perform in line with the index in up-market periods, which was the experience for the trailing 12-month period.
At the country level, stock selection and underweight exposure to South Korea was the primary driver of underperformance over the period. This was partially offset by strong stock selection and overweight exposure to India and Chile. The portfolio’s underweight exposure to China also benefited relative returns.
At the sector level, overweight exposure and stock selection within Consumer Staples was the primary driver of underperformance for the period. Conversely, strong stock selection and overweight exposure in Consumer Discretionary, benefited relative returns along with lack of exposure to Energy and Utilities sectors.
Portfolio Review – RBC Emerging Markets Small Cap Equity Fund
For the 12-month period ended March 31, 2021, the Fund had an annualized total return of 61.04% (Class I). That compares to an annualized total return of 87.13% for the MSCI Emerging Markets Small Cap Net Total Return USD Index, the Fund’s primary benchmark.
At the country level, stock selection in South Africa and Brazil were the primary drivers of underperformance for the period, which was partially mitigated by overweight exposure to those countries. Overweight exposure to Bangladesh, Philippines and Chile also detracted from relative performance, while overweight exposure to India benefited relative returns.
At the sector level, stock selection and overweight exposure to Financials and Consumer Staples were the primary drivers of underperformance for the period. This was partially offset by strong stock selection in Industrials and Real Estate.
Portfolio Review – RBC Emerging Markets Value Equity Fund
For the 12-month period ended March 31, 2021, the Fund had an annualized total return of 75.61% (Class I). That compares to an annualized total return of 58.39% for the MSCI Emerging Markets Net Total Return USD Index, the Fund’s primary benchmark.
While out of favor in recent years, value stocks have begun to stage a comeback. Stock selection was the primary driver of benchmark outperformance.
At the country level, stock selection and overweight exposure to China was the primary driver of outperformance for the period. Stock selection was also strong in India and Taiwan. Overweight exposure to South Korea and South Africa also benefited relative performance. Overweight exposure and stock selection in Peru modestly detracted.
At the sector level, stock selection in Consumer Discretionary, Industrials and Communication Services was the primary driver of outperformance for the period. Underweight exposure and stock selection in Healthcare modestly detracted.
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LETTER FROM THE PORTFOLIO MANAGER OF EMERGING MARKETS EQUITIES
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Outlook
Away from the near-term market dynamics dominated by the COVID-19 pandemic, we believe the medium to long-term outlook for emerging markets remains intact. We’ve identified four key factors that we believe will play an important role in determining the performance of EM equities going forward: the U.S. dollar, the economic growth differential between EM and DM, earnings growth, and valuations. We believe there is a strong likelihood that in the coming years, some of these factors will shift from being headwinds to tailwinds, which could ultimately support a sustained improvement in relative EM performance.
In terms of investment positioning, the RBC EM Equity Team continues to focus on high quality companies with sustainable advantages, talented management teams and strong balance sheets and cash flows. From a top-down perspective, we remain focused on secular themes to ensure the portfolio is positioned in areas of long-term structural growth, while seeking to avoid those areas in decline.
Phil Langham
Senior Portfolio Manager and Head, Emerging Market Equities
RBC Global Asset Management (UK) Limited
The information provided herein represents the opinions of the Fund Managers and is not intended to be a forecast of future events, a guarantee of future results, or investment advice.
Mutual fund investing involves risk. Principal loss is possible. The Funds invests in foreign securities, which involve greater volatility and political, economic, and currency risks, and differences in accounting methods. These risks may be greater in emerging markets. The RBC Emerging Markets Small Cap Equity Fund invest in small capitalization companies, which involve greater risks such as more volatility and less liquidity than larger companies. The RBC Emerging Markets Value Equity Fund invest in value stocks, which may not increase in price as anticipated by the Adviser if they fall out of favor with investors or the markets favor faster growing companies. There is a possibility that issuers of securities in which the Funds may invest may default on the payment of interest or principal on the securities when due, which could cause the Funds to lose money. These risks are described more fully in the prospectus.
The MSCI Emerging Markets Net Total Return USD Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. It captures large and mid capitalization representation across emerging markets countries and covers approximately 85% of the free float-adjusted market capitalization in each country. The Net Index is net of any foreign withholding tax. You cannot invest directly in an index.
The MSCI Emerging Markets Small Cap Net Total Return USD Index includes small capitalization representation across emerging markets countries. It covers approximately 14% of the free float-adjusted market capitalization in each country. The Net Index is net of any foreign withholding tax. You cannot invest directly in an index.
Cash flow is the total amount of cash coming into and going out of a business.
Earnings growth is not representative of the Fund’s future performance.
Fund performance attribution data excludes Fund holdings that are fair valued.
Past performance is not a guarantee of future results.
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LETTER FROM THE PORTFOLIO MANAGER OF GLOBAL EQUITIES
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Dear Shareholder:
Market Review
The coronavirus pandemic disrupted many sections of the global economy. Through most of the recovery, investors were faced with a highly bifurcated market, with the relative security of ‘COVID-immune’ business models preferred to those more directly affected by the virus. This remained the dominant market dynamic for the second and third quarters, but was challenged during the final quarter of the year, which experienced a significant increase in volatility led by the U.S. elections and the welcome news of positive trial results of vaccines proven to be successful against the COVID-19 coronavirus.
The new year brought the passage of a near 2 trillion dollar fiscal stimulus package, as well as encouraging news from the successful roll-out of the U.S. vaccination program, which raised hopes that the U.S. economy might, together with a number of other countries, exit from economic lockdown in a matter of months. This backdrop was taken positively by equity investors, but presented a challenge for bond markets, which began to price in increasing inflationary pressures.
Portfolio Review – RBC Global Opportunities Fund
For the 12-month period ended March 31, 2021, the Fund had an annualized total return of 61.74% (I Shares). That compares to an annualized total return of 54.60% for the MSCI ACWI Net Total Return USD Index, the Fund’s primary benchmark.
Stock selection drove returns throughout the period with a number of Financials and Industrials holdings contributing the most. At the stock level, relative returns were led by SVB Financial Group, the U.S. bank for the innovation economy, which benefitted from thriving market segments, a rising interest rate environment and expectations of a record deployment of venture capital and private equity. Also leading relative returns were Japanese motor manufacturer Nidec, and Taiwanese semiconductor manufacturer TSMC. Stocks that detracted from returns were Swiss pharmaceutical company Roche, U.S. chemicals company Ecolab, and Apple, the U.S. technology company whose stock performed strongly but was not owned in the portfolio.
Portfolio Review – RBC International Opportunities Fund
For the 12-month period ended March 31, 2021, the Fund had an annualized total return of 63.90% (I Shares). That compares to an annualized total return of 49.41% for the MSCI ACWI ex USA Net Total Return USD Index, the Fund’s primary benchmark.
Stock selection drove returns throughout the period with a number of Industrials and Financials holdings contributing the most. At the stock level, relative returns were led by Taiwanese semiconductor manufacturer TSMC, which saw its share price respond positively to the likelihood of the company securing meaningful CPU outsourcing business from U.S. multinational technology company Intel. Also leading relative returns were Japanese motor manufacturer Nidec, and global logistics leader Deutsche Post. Stocks that detracted were Swiss pharmaceutical company Roche, Japanese pharmaceutical producer Astellas Pharma, and Spanish clothing company Industria de Diseno Textil.
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LETTER FROM THE PORTFOLIO MANAGER OF GLOBAL EQUITIES
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Outlook
Investors Investors now experience a contest between the improving profits and cash flows coming from vaccination-led economic normalization, and the normalization of monetary and fiscal policy which may increase the discount rate used to value those profits and cash flows. In our view, the improvement in the profit outlook is contributing to weak, highly leveraged businesses performing very strongly, and to higher interest rates, incentivising investors to value short-term profits proportionately more than longer-term opportunities.
For a fundamental, long-term strategy, such as ours, this presents particularly challenging conditions. Our investment philosophy of owning great businesses at attractive valuations means that we are very unlikely to own the weak, highly leveraged businesses that will likely benefit the most when sentiment changes. Although such periods can be uncomfortable, they historically do not last. In time, share prices follow company fundamentals. We remain of the opinion that the right long-term course of action is to continue to invest in great businesses, whilst simultaneously continuing to pay close attention to the balance of the portfolio.
Habib Subjally
Senior Portfolio Manager and Head, Global Equities
RBC Global Asset Management (UK) Limited
The information provided herein represents the opinions of the Fund Managers and is not intended to be a forecast of future events, a guarantee of future results, or investment advice.
Mutual fund investing involves risk. Principal loss is possible. The Funds invests in foreign securities, which involve greater volatility and political, economic, and currency risks, and differences in accounting methods. These risks may be greater in emerging markets. The Funds may focus their investments in a region or small group of countries. As a result, the Funds’ performance may be subject to greater volatility than a more geographically diversified fund. The Funds invest in small capitalization companies, which involve greater risks such as more volatility and less liquidity than larger companies. There is a possibility that issuers of securities in which the Funds may invest may default on the payment of interest or principal on the securities when due, which could cause the Funds to lose money. These risks are described more fully in the prospectus.
The MSCI ACWI ex USA Net Total Return USD Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets excluding the U.S. It captures large and mid capitalization representation across developed markets and emerging markets countries excluding the U.S. and covers approximately 85% the global investable equity opportunity set outside the U.S. The Net Index is net of any foreign withholding tax. You cannot invest directly in an index.
The MSCI ACWI Net Total Return USD Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity performance of developed and emerging markets. It captures large and mid capitalization representation across developed markets and emerging markets countries and covers approximately 85% of the global investable equity opportunity set. The Net Index is net of any foreign withholding tax. You cannot invest directly in an index.
Past performance is not guarantee of future results.
Fund holdings and/or sector allocations are subject to change at any time and are not recommendations to buy or sell any security. Current and future holdings are subject to risk. Please refer to the Schedule of Investments in this report for a complete list of Fund holdings.
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RBC Global Asset Management (U.S.) Inc. (“RBC GAM-US”) serves as the investment advisor and RBC Global Asset Management (UK) Limited (“RBC GAM-UK”) serves as the investment sub-advisor to the Funds and is responsible for the overall management of the Funds’ portfolios. The individual primarily responsible for the day-to-day management of each Fund’s portfolio is set forth below.
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Philippe Langham
Senior Portfolio Manager and Head of Emerging Market Equities
Philippe Langham is Head of Emerging Market Equities at RBC GAM-UK and is responsible for portfolio management of RBC Emerging Markets Equity Fund and RBC Emerging Markets Small Cap Equity Fund. Philippe joined RBC GAM-UK in November 2009 from Societe Generale Asset Management, where he was Head of Global Emerging Markets. He was previously Director and Head of Emerging Markets and Asia at Credit Suisse in Zurich. Prior to that, he managed Global Emerging Markets, Asian, Latin American and U.S. portfolios for nine years at the Kuwait Investment Office. Philippe holds a BSc in economics from the University of Manchester in England and is a Chartered Accountant. | ||||||||
Laurence Bensafi
Senior Portfolio Manager and Deputy Head of Emerging Markets Equity
Laurence Bensafi is Deputy Head of Emerging Markets Equity at RBC GAM-UK and is responsible for portfolio management of RBC Emerging Markets Value Equity Fund. Prior to joining RBC GAM-UK in 2013, Laurence was the Head of Aviva Investors’ Emerging Markets team, where she was responsible for managing Global Emerging Markets income funds and for developing quantitative stock selection and analysis models. Laurence began her investment career as a Quantitative Analyst at Societe Generale Asset Management, supporting European and Global Equity portfolio management by developing quantitative models to assist in the portfolio construction and security selection process. In 1997, Laurence obtained a Magistere d’Economiste Statisticien & D.E.S.S. Statistique et Econometrie from Toulouse University in France. Laurence is a CFA charterholder. | ||||||||
Habib Subjally
Senior Portfolio Manager and Head of Global Equities
Habib Subjally is Head of Global Equities at RBC GAM-UK and is responsible for portfolio management of RBC Global Opportunities Fund and RBC International Opportunities Fund. Prior to joining RBC GAM-UK in 2014 Habib and his team spent eight years together at First State managing global equities. Previously he was Head of Small & Mid Cap Research at Credit Suisse and Head of the Global equities team at Invesco. Habib began his fund management career at Merrill Lynch Investment Managers, where he was Head of North American and Global equities research. He holds a BSc (Hons) from the London School of Economics and holds Chartered Accountant and ASIP designations. | ||||||||
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1 Year | 3 Year | 5 Year | Since Inception(a) | Net Expense Ratio(b)(c) | Gross Expense Ratio(b)(c) | |||||||||||||||||||
Average Annual Total Returns as of March 31, 2021 (Unaudited) |
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RBC Emerging Markets Equity Fund | ||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||
- Including Max Sales Charge of 5.75% | 46.40% | 5.93% | 9.98% | 7.16% | ||||||||||||||||||||
- At Net Asset Value | 55.33% | 8.05% | 11.30% | 8.03% | 1.13% | 1.45% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
- At Net Asset Value | 55.77% | 8.33% | 11.57% | 8.29% | 0.88% | 0.99% | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||
- At Net Asset Value | 55.70% | 8.35% | 11.57% | 8.40% | 0.88% | 0.88% | ||||||||||||||||||
MSCI Emerging Markets | ||||||||||||||||||||||||
Net Total Return USD Index(d) | 58.39% | 6.48% | 12.07% | 6.44% | ||||||||||||||||||||
RBC Emerging Markets Small Cap Equity Fund |
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Class A | ||||||||||||||||||||||||
- Including Max Sales Charge of 5.75% | 51.57% | (2.63)% | 4.02% | 2.44% | ||||||||||||||||||||
- At Net Asset Value | 60.76% | (0.70)% | 5.26% | 3.27% | 1.53% | 4.30% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
- At Net Asset Value | 61.04% | (0.48)% | 5.52% | 3.52% | 1.28% | 3.99% | ||||||||||||||||||
MSCI Emerging Markets | ||||||||||||||||||||||||
Small Cap Net Total Return USD Index(d) | 87.13% | 5.19% | 9.59% | 6.05% | ||||||||||||||||||||
RBC Emerging Markets Value Equity Fund |
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Class I | ||||||||||||||||||||||||
- At Net Asset Value | 75.61% | 5.62% | N/A | 6.00% | 0.95% | 1.97% | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||
- At Net Asset Value | 75.44% | 5.67% | N/A | 6.05% | 0.88% | 3.37% | ||||||||||||||||||
MSCI Emerging Markets | ||||||||||||||||||||||||
Net Total Return USD Index(d) | 58.39% | 6.48% | N/A | 6.74% | ||||||||||||||||||||
RBC Global Opportunities Fund |
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Class A | ||||||||||||||||||||||||
- Including Max Sales Charge of 5.75% | 51.93% | 13.12% | 15.38% | 12.40% | ||||||||||||||||||||
- At Net Asset Value | 61.21% | 15.39% | 16.76% | 13.46% | 1.02% | 33.96% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
- At Net Asset Value | 61.74% | 15.69% | 16.99% | 13.65% | 0.77% | 0.99% | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||
- At Net Asset Value | 61.76% | 15.75% | 17.04% | 13.70% | 0.71% | 0.90% | ||||||||||||||||||
MSCI ACWI Net | ||||||||||||||||||||||||
Total Return USD Index(d) | 54.60% | 12.07% | 13.21% | 9.66% |
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PERFORMANCE SUMMARY (UNAUDITED)
1 Year | 3 Year | 5 Year | Since Inception(a) |
Net | Gross Expense Ratio (b)(c) | |||||||||||||||||||
Average Annual Total Returns as of March 31, 2021 (Unaudited) |
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RBC International Opportunities Fund | ||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||
- Including Max Sales Charge of 5.75% | 52.74% | 8.09% | 9.36% | 6.70% | ||||||||||||||||||||
- At Net Asset Value | 62.00% | 10.26% | 10.67% | 7.70% | 1.10% | 3.67% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
- At Net Asset Value | 63.90% | 10.90% | 11.13% | 8.09% | 0.81% | 1.11% | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||
- At Net Asset Value | 64.15% | 11.00% | 11.20% | 8.15% | 0.76% | 24.83% | ||||||||||||||||||
MSCI ACWI ex US Index(d) | 49.41% | 6.51% | 9.76% | 6.08% |
Performance data quoted represents past performance. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Performance shown reflects contractual fee waivers, without such fee waivers total returns would be reduced. Performance information does not reflect the 2% fee on shares redeemed or exchanged within 30 days of purchase. If such redemption fee was included, performance would be reduced. For performance data current to the most recent month-end go to www.rbcgam.us. Please see footnotes below.
(a) | The since inception date (commencement of operations) is December 20, 2013 for RBC Emerging Markets Equity Fund and RBC Emerging Markets Small Cap Equity Fund for Class A and Class I shares and November 22, 2016 for Class R6 shares, February 9, 2018 for RBC Emerging Markets Value Equity Fund for Class I and Class R6 shares and December 3, 2014 for RBC Global Opportunities Fund and RBC International Opportunities Fund for Class I shares, November 22,2016 for Class R6 shares and January 28, 2020 for Class A Shares. The performance in the table for Class R6 shares prior to November 22,2016 reflects the performance of the Class I shares since the Fund’s inception, adjusted to reflect the fees and expenses of Class R6 shares. The performance in the table for Class A shares of Global Opportunities Fund and International Opportunities Fund prior to January 28, 2020, reflects the performance of Class I shares since the Fund’s inception, adjusted to reflect the fees and expenses of Class A shares. |
(b) | The Funds’ expenses reflect actual expenses for the most recent fiscal year ended March 31, 2021. |
(c) | The Advisor has contractually agreed to waive fees and/or make payments in order to keep total operating expenses of the Fund to the levels listed under net expense ratio until July 31, 2022 (September 30, 2022 for RBC Emerging Markets Equity Fund). |
(d) | Each of the comparative indices is a widely recognized market value weighted measure of the return of securities, but do not include sales fees or operating expenses. You cannot invest directly in indices. |
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PERFORMANCE SUMMARY (UNAUDITED)
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. It captures large and mid capitalization representation across emerging markets countries and covers approximately 85% of the free float-adjusted market capitalization in each country. The Net Index is net of any foreign withholding tax. You cannot invest directly in an index.
The MSCI Emerging Markets Small Cap Index includes small capitalization representation across emerging markets countries. It covers approximately 14% of the free float-adjusted market capitalization in each country. The Net Index is net of any foreign withholding tax. You cannot invest directly in an index.
The MSCI ACWI ex USA Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets excluding the U.S. It captures large and mid capitalization representation across developed markets and emerging markets countries excluding the U.S. and covers approximately 85% the global investable equity opportunity set outside the U.S. The Net Index is net of any foreign withholding tax. You cannot invest directly in an index.
The MSCI ACWI Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity performance of developed and emerging markets. It captures large and mid capitalization representation across developed markets and emerging markets countries and covers approximately 85% of the global investable equity opportunity set. The Net Index is net of any foreign withholding tax. You cannot invest directly in an index.
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MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
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RBC Emerging Markets Equity Fund
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Long-term growth of capital.
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Investment Objective | ||||||||||||||||
MSCI Emerging Markets Net Total Return USD Index
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Benchmark | ||||||||||||||||
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Asset Allocation as of 3/31/21 (% of Fund’s Top Five Industries (as of 3/31/21) (% of Fund’s net assets) | |||||||||||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 6.38% | Ping An Insurance Group Co. of China Ltd. | 4.36 | % |
Top Ten Holdings (excluding investment companies) (as of 3/31/21) (% of Fund’s net assets) | |||||||||||||
Naspers Ltd. | 4.99% | Tata Consultancy Services Ltd. | 3.68 | % | ||||||||||||||
SK Hynix, Inc. | 4.81% | Housing Development Finance Corp. Ltd. | 3.41 | % | ||||||||||||||
Alibaba Group Holding Ltd. | 4.67% | MediaTek, Inc. | 3.05 | % | ||||||||||||||
Antofagasta Plc | 4.59% | |||||||||||||||||
Tencent Holdings Ltd. | 4.52% | |||||||||||||||||
*A listing of all portfolio holdings can be found beginning on page 20 | ||||||||||||||||||
The graph reflects an initial investment of $250,000 over the period from December 20, 2013 (commencement of operations) to March 31, 2021 and is based on Class I shares. The Fund’s total return includes reinvested dividends and capital gains. The Fund’s total return also includes operating expenses that reduce return while the total return of the index does not. The graph does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance of other classes will vary due to differences in fee structures.
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Growth of $250,000 Initial Investment Since Inception (12/20/13) |
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MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
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RBC Emerging Markets Value Equity Fund
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Long-term growth of capital.
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Investment Objective | ||||||||||||||||||
MSCI Emerging Markets Net Total Return USD Index
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Benchmark | ||||||||||||||||||
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Asset Allocation as of 3/31/21 (% of Fund’s investments) & Top Five Industries (as of 3/31/21) (% of Fund’s net assets) | ||||||||||||||||||
*Includes U.S. dollar denominated cash equivalent investments representing 0.38% of investments. |
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Samsung Electronics Co. Ltd. | 5.53 | % |
Naspers Ltd. | 2.42 | % |
Top Ten Holdings (excluding investment companies) (as of 3/31/21) (% of Fund’s net assets) | ||||||||||||||
Alibaba Group Holding Ltd. | 5.42 | % | Antofagasta Plc | 2.39 | % | |||||||||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 4.45 | % | Hana Financial Group, Inc. | 1.67 | % | |||||||||||||||
Ping An Insurance Group Co. of China Ltd. | 3.41 | % | Hindalco Industries Ltd. | 1.59 | % | |||||||||||||||
Ping An Bank Co. Ltd. | 2.96 | % | Hyundai Motor Co. | 1.58 | % | |||||||||||||||
*A listing of all portfolio holdings can be found beginning on page 27
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Growth of $250,000 Initial Investment Since Inception (2/9/18) | ||||||||||||||||||
The graph reflects an initial investment of $250,000 over the period from February 9, 2018 (commencement of operations) to March 31, 2021 and is based on Class I shares. The Fund’s total return includes reinvested dividends and capital gains. The Fund’s total return also includes operating expenses that reduce return while the total return of the index does not. The graph does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance of other classes will vary due to differences in fee structures.
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MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
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RBC Global Opportunities Fund
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Long-term growth of capital.
|
|
Investment Objective | ||||||||||||||||||
MSCI ACWI Net Total Return USD Index
|
|
Benchmark | ||||||||||||||||||
*Includes U.S. dollar denominated cash equivalent investments representing 2.72% of investments.
|
|
Asset Allocation as of 3/31/21 (% of Fund’s investments) & Top Five Industries (as of 3/31/21) (% of Fund’s net assets) | ||||||||||||||||||
Microsoft Corp. | 5.33 | % | Ecolab, Inc. | 3.85 | % | Top Ten Holdings
(excluding investment companies) (as of 3/31/21) (% of Fund’s net assets) | ||||||||||||||
Alphabet, Inc. | 4.82 | % | Industria de Diseno Textil SA | 3.84 | % | |||||||||||||||
Roche Holding AG | 4.77 | % | Deutsche Post AG | 3.74 | % | |||||||||||||||
UnitedHealth Group, Inc. | 3.98 | % | SVB Financial Group | 3.68 | % | |||||||||||||||
First Republic Bank | 3.96 | % | AIA Group Ltd. | 3.60 | % | |||||||||||||||
*A listing of all portfolio holdings can be found beginning on page 32
|
| |||||||||||||||||||
|
|
Growth of $100,000 Initial Investment Since Inception (12/3/14) | ||||||||||||||||||
The graph reflects an initial investment of $100,000 over the period from December 3, 2014 (commencement of operations) to March 31, 2021 and is based on Class I shares. The Fund’s total return includes reinvested dividends and capital gains. The Fund’s total return also includes operating expenses that reduce return while the total return of the index does not. The graph does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance of other classes will vary due to differences in fee structures.
|
|
17
18
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
|
| |||||||||||||||||||
RBC International Opportunities Fund
|
| |||||||||||||||||||
Long-term growth of capital.
|
|
Investment Objective | ||||||||||||||||||
MSCI ACWI ex USA Net Total Return USD Index
|
|
Benchmark | ||||||||||||||||||
*Includes U.S. dollar denominated cash equivalent investments representing 1.66% of investments.
|
|
Asset Allocation as of 3/31/21 (% of Fund’s investments) & Top Five Industries (as of 3/31/21) (% of Fund’s net assets) | ||||||||||||||||||
Naspers Ltd. | 5.96 | % | Deutsche Post AG | 4.65 | % | Top Ten Holdings (excluding investment companies) (as of 3/31/21) (% of Fund’s net assets) | ||||||||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 5.83 | % | HDFC Bank Ltd. | 4.38 | % | |||||||||||||||
Nidec Corp. | 5.10 | % | Industria de Diseno Textil SA | 4.12 | % | |||||||||||||||
AIA Group Ltd. | 4.68 | % | Orsted A/S | 4.06 | % | |||||||||||||||
Roche Holding AG | 4.67 | % | Partners Group Holding AG | 4.05 | % | |||||||||||||||
*A listing of all portfolio holdings can be found beginning on page 35 |
| |||||||||||||||||||
|
|
Growth of $100,000 Initial Investment Since Inception (12/3/14) | ||||||||||||||||||
The graph reflects an initial investment of $100,000 over the period from December 3, 2014 (commencement of operations) to March 31, 2021 and is based on Class I shares. The Fund’s total return includes reinvested dividends and capital gains. The Fund’s total return also includes operating expenses that reduce return while the total return of the index does not. The graph does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance of other classes will vary due to differences in fee structures.
|
|
19
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Emerging Markets Equity Fund
|
March 31, 2021 |
Shares
| Value
| |||||
Common Stocks — 100.00% | ||||||
Argentina — 0.81% | ||||||
14,600 | MercadoLibre, Inc.* | $ | 21,493,244 | |||
|
| |||||
Brazil — 3.90% | ||||||
3,156,600 | B3 SA - Brasil Bolsa Balcao | 30,659,452 | ||||
9,211,660 | Banco Bradesco SA | 38,377,484 | ||||
7,765,430 | Raia Drogasil SA | 34,711,382 | ||||
|
| |||||
103,748,318 | ||||||
|
| |||||
Chile — 5.69% | ||||||
5,242,062 | Antofagasta Plc | 122,103,961 | ||||
6,502,464 | SACI Falabella | 29,532,244 | ||||
|
| |||||
151,636,205 | ||||||
|
| |||||
China — 21.79% | ||||||
548,400 | Alibaba Group Holding Ltd., ADR* | 124,338,732 | ||||
9,909,245 | China Resources Land Ltd. | 48,295,913 | ||||
1,092,979 | LONGi Green Energy Technology Co. Ltd., Class A | 14,798,277 | ||||
3,859,960 | NARI Technology Co. Ltd., Class A | 18,418,517 | ||||
9,706,161 | Ping An Insurance Group Co. of China Ltd., Series H | 116,098,850 | ||||
1,470,476 | Shenzhen Inovance Technology Co. Ltd., Class A | 19,280,477 | ||||
2,224,863 | Sunny Optical Technology Group Co. Ltd. | 51,114,330 | ||||
1,507,585 | Tencent Holdings Ltd. | 120,316,673 | ||||
1,143,500 | Yum China Holdings, Inc. | 67,706,635 | ||||
|
| |||||
580,368,404 | ||||||
|
| |||||
Hong Kong — 5.25% | ||||||
6,312,790 | AIA Group Ltd. | 77,248,163 | ||||
1,055,083 | Hong Kong Exchanges & Clearing Ltd. | 62,593,748 | ||||
|
| |||||
139,841,911 | ||||||
|
| |||||
India — 14.68% | ||||||
1,090,705 | Dr Reddy’s Laboratories Ltd. | 67,476,783 | ||||
21,780 | Dr. Reddy’s Laboratories Ltd., ADR | 1,337,074 | ||||
2,560,795 | HDFC Bank Ltd.* | 52,418,815 | ||||
567,071 | Hero MotoCorp Ltd. | 22,672,932 | ||||
2,641,340 | Housing Development Finance Corp. Ltd. | 90,754,740 | ||||
5,332,673 | Mahindra & Mahindra Ltd. | 58,283,929 | ||||
2,249,808 | Tata Consultancy Services Ltd. | 98,028,351 | ||||
|
| |||||
390,972,624 | ||||||
|
| |||||
Indonesia — 2.44% | ||||||
13,076,568 | Bank Central Asia Tbk PT | 28,004,747 | ||||
341,640,717 | Kalbe Farma Tbk PT | 36,927,863 | ||||
|
| |||||
64,932,610 | ||||||
|
| |||||
Korea — 11.77% | ||||||
1,614,999 | Hanon Systems | 25,276,355 | ||||
326,602 | LG Corp. | 26,205,378 |
20
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Emerging Markets Equity Fund (cont.)
|
March 31, 2021 |
Shares
| Value
| |||||
69,851 | NCSoft Corp. | $ | 53,990,872 | |||
191,817 | Samsung Fire & Marine Insurance Co. Ltd. | 32,233,746 | ||||
1,429,441 | Shinhan Financial Group Co. Ltd. | 47,474,642 | ||||
1,085,517 | SK Hynix, Inc. | 128,158,017 | ||||
|
| |||||
313,339,010 | ||||||
|
| |||||
Mexico — 2.01% | ||||||
709,200 | Fomento Economico Mexicano SAB de CV, ADR | 53,424,036 | ||||
|
| |||||
Peru — 1.39% | ||||||
270,460 | Credicorp Ltd. | 36,936,722 | ||||
|
| |||||
Philippines — 2.06% | ||||||
2,773,930 | SM Investments Corp. | 54,937,029 | ||||
|
| |||||
South Africa — 7.76% | ||||||
2,626,601 | Clicks Group Ltd. | 42,844,448 | ||||
3,429,396 | Discovery Ltd. | 30,772,685 | ||||
555,213 | Naspers Ltd., N Shares | 132,979,303 | ||||
|
| |||||
206,596,436 | ||||||
|
| |||||
Taiwan — 14.39% | ||||||
1,885,791 | Advantech Co. Ltd. | 23,523,819 | ||||
21,028,644 | E.Sun Financial Holding Co. Ltd. | 19,254,372 | ||||
316,362 | Largan Precision Co. Ltd. | 35,780,731 | ||||
2,363,028 | MediaTek, Inc. | 81,280,642 | ||||
8,065,973 | Taiwan Semiconductor Manufacturing Co. Ltd. | 169,863,034 | ||||
20,894,468 | Uni-President Enterprises Corp. | 53,655,277 | ||||
|
| |||||
383,357,875 | ||||||
|
| |||||
Thailand — 0.87% | ||||||
5,015,000 | Kasikornbank Public Co. Ltd., NVDR | 23,316,309 | ||||
|
| |||||
Turkey — 1.10% | ||||||
30,408,720 | Enka Insaat ve Sanayi AS | 29,188,158 | ||||
|
| |||||
United Kingdom — 4.09% | ||||||
1,500,188 | Mondi Plc | 38,559,196 | ||||
1,260,579 | Unilever Plc | 70,340,070 | ||||
|
| |||||
108,899,266 | ||||||
|
| |||||
Total Common Stocks | 2,662,988,157 | |||||
|
| |||||
(Cost $2,246,692,912) |
21
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Emerging Markets Equity Fund (cont.)
|
March 31, 2021 |
Total Investments | $ | 2,662,988,157 | ||||
(Cost $2,246,692,912)(a) — 100.00% | ||||||
Other assets in excess of liabilities — 0.00% | 121,234 | |||||
|
| |||||
NET ASSETS — 100.00% | $ | 2,663,109,391 | ||||
|
|
* | Non-income producing security. |
(a) | See Notes to Schedules of Portfolio Investments for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Abbreviations used are defined below:
ADR - American Depositary Receipt
NVDR - Non-Voting Depository Receipt
Portfolio Diversification (Unaudited)
Industries | Percentage of Net Assets | ||||
Financials | 25.77 | % | |||
Information Technology | 22.63 | % | |||
Consumer Discretionary | 18.11 | % | |||
Consumer Staples | 9.57 | % | |||
Communication Services | 6.55 | % | |||
Materials | 6.03 | % | |||
Industrials | 5.56 | % | |||
Health Care | 3.97 | % | |||
Real Estate | 1.81 | % | |||
Other* | 0.00 | % | |||
|
| ||||
100.00 | % | ||||
|
| ||||
* Includes cash, interest and dividend receivable, pending trades and Fund share transactions, and accrued expenses payable.
See Notes to the Financial Statements. |
|
22
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Emerging Markets Small Cap Equity Fund
|
March 31, 2021 |
Shares
| Value
| |||||
Common Stocks — 97.99% | ||||||
Bangladesh — 2.08% | ||||||
269,098 | BRAC Bank Ltd. | $ | 129,107 | |||
87,030 | Delta Brac Housing Finance Corp Ltd.(a),(b) | 85,721 | ||||
|
| |||||
214,828 | ||||||
|
| |||||
Brazil — 4.93% | ||||||
67,226 | Aeris Industria E Comercio De Equipamentos Para Geracao De Energia SA* | 105,581 | ||||
4,595 | Arco Platform Ltd., Class A* | 116,437 | ||||
62,700 | Fleury SA | 286,284 | ||||
|
| |||||
508,302 | ||||||
|
| |||||
Chile — 3.64% | ||||||
29,044 | Inversiones La Construccion SA | 223,746 | ||||
78,118 | Parque Arauco SA | 152,346 | ||||
|
| |||||
376,092 | ||||||
|
| |||||
China — 11.91% | ||||||
264,000 | Greatview Aseptic Packaging Co. Ltd. | 131,339 | ||||
21,898 | Hongfa Technology Co. Ltd., Class A | 165,572 | ||||
75,972 | InnoCare Pharma Ltd.*,(c) | 178,581 | ||||
141,743 | Precision Tsugami China Corp. Ltd. | 168,164 | ||||
1,252 | Silergy Corp. | 103,267 | ||||
108,000 | SITC International Holdings Co. Ltd. | 367,557 | ||||
7,461 | Xiamen Faratronic Co. Ltd., Class A | 113,492 | ||||
|
| |||||
1,227,972 | ||||||
|
| |||||
Egypt — 1.02% | ||||||
99,444 | Integrated Diagnostics Holdings Plc(c) | 104,894 | ||||
|
| |||||
Hong Kong — 1.79% | ||||||
48,000 | Vitasoy International Holdings Ltd. | 184,759 | ||||
|
| |||||
India — 21.44% | ||||||
7,973 | Bajaj Holdings & Investment Ltd. | 360,210 | ||||
30,883 | Cholamandalam Financial Holdings Ltd. | 254,292 | ||||
45,378 | Cyient Ltd. | 403,025 | ||||
60,111 | Marico Ltd. | 338,979 | ||||
19,292 | Phoenix Mills Ltd. (The)* | 206,899 | ||||
6,423 | Sundaram Finance Ltd. | 226,180 | ||||
24,524 | Tata Consumer Products Ltd. | 214,854 | ||||
12,617 | Tube Investments of India Ltd. | 206,416 | ||||
|
| |||||
2,210,855 | ||||||
|
| |||||
Indonesia — 1.14% | ||||||
2,129,279 | Sarimelati Kencana PT | 117,372 | ||||
|
|
23
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Emerging Markets Small Cap Equity Fund (cont.)
|
March 31, 2021 |
Shares
| Value
| |||||
Korea — 10.95% | ||||||
15,961 | DGB Financial Group, Inc. | $ | 119,084 | |||
3,310 | Koh Young Technology, Inc. | 337,599 | ||||
2,661 | Leeno Industrial, Inc. | 369,581 | ||||
17,077 | Macquarie Korea Infrastructure Fund | 175,820 | ||||
492 | Soulbrain Co. Ltd.* | 127,055 | ||||
|
| |||||
1,129,139 | ||||||
|
| |||||
Malaysia — 0.80% | ||||||
25,160 | LPI Capital Berhad | 82,825 | ||||
|
| |||||
Mexico — 3.49% | ||||||
58,400 | Bolsa Mexicana de Valores SAB de CV | 117,574 | ||||
115,600 | Corp. Inmobiliaria Vesta SAB de CV | 242,065 | ||||
|
| |||||
359,639 | ||||||
|
| |||||
Pakistan — 1.00% | ||||||
31,000 | Packages Ltd. | 102,917 | ||||
|
| |||||
Peru — 1.43% | ||||||
3,489 | InRetail Peru Corp.(c) | 147,585 | ||||
|
| |||||
Philippines — 6.93% | ||||||
980,350 | Century Pacific Food, Inc. | 373,405 | ||||
691,094 | Integrated Micro-Electronics, Inc.* | 150,369 | ||||
76,470 | Security Bank Corp. | 191,045 | ||||
|
| |||||
714,819 | ||||||
|
| |||||
Russia — 1.48% | ||||||
336,512 | Sistema PJSFC | 152,479 | ||||
|
| |||||
South Africa — 4.47% | ||||||
42,417 | AVI Ltd. | 214,357 | ||||
32,573 | JSE Ltd. | 246,333 | ||||
|
| |||||
460,690 | ||||||
|
| |||||
Sri Lanka — 0.98% | ||||||
159,174 | Hatton National Bank Plc | 100,832 | ||||
|
| |||||
Taiwan — 16.67% | ||||||
73,000 | Chroma ATE, Inc. | 486,360 | ||||
26,835 | Giant Manufacturing Co. Ltd. | 324,392 | ||||
22,274 | Innodisk Corp. | 133,182 | ||||
7,337 | Poya International Co. Ltd. | 153,857 | ||||
57,247 | Standard Foods Corp. | 117,887 | ||||
12,916 | Voltronic Power Technology Corp. | 503,748 | ||||
|
| |||||
1,719,426 | ||||||
|
|
24
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Emerging Markets Small Cap Equity Fund (cont.)
|
March 31, 2021 |
Shares
| Value
| |||||
United Arab Emirates — 1.84% | ||||||
177,534 | Aramex PJSC | $ | 190,020 | |||
|
| |||||
Total Common Stocks | 10,105,445 | |||||
|
| |||||
(Cost $8,580,001) | ||||||
Preferred Stocks — 1.33% | ||||||
Korea — 1.33% | ||||||
1,846 | Amorepacific Corp. | 136,873 | ||||
|
| |||||
Philippines — 0.00% | ||||||
58,000 | Security Bank Corp.(a),(b) | 119 | ||||
|
| |||||
Total Preferred Stocks | 136,992 | |||||
|
| |||||
(Cost $145,537) | ||||||
Investment Company — 0.43% | ||||||
45,099 | U.S. Government Money Market Fund, RBC Institutional Class 1 (d) | 45,100 | ||||
|
| |||||
Total Investment Company | 45,100 | |||||
|
| |||||
(Cost $45,100) | ||||||
Total Investments | $ | 10,287,537 | ||||
(Cost $8,770,638)(e) — 99.75% | ||||||
Other assets in excess of liabilities — 0.25% | 25,282 | |||||
|
| |||||
NET ASSETS — 100.00% | $ | 10,312,819 | ||||
|
|
* | Non-income producing security. |
(a) | The Pricing Committee has fair valued this security under procedures established by the Fund’s Board of Trustees. |
(b) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(c) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(d) | Affiliated investment. |
(e) | See Notes to Schedules of Portfolio Investments for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
25
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Emerging Markets Small Cap Equity Fund (cont.)
|
March 31, 2020 |
Portfolio Diversification (Unaudited)
Industries | Percentage of Net Assets | ||||
Financials | 22.43 | % | |||
Information Technology | 20.33 | % | |||
Consumer Staples | 16.76 | % | |||
Industrials | 14.55 | % | |||
Consumer Discretionary | 8.91 | % | |||
Real Estate | 5.83 | % | |||
Health Care | 5.53 | % | |||
Materials | 3.50 | % | |||
Communication Services | 1.48 | % | |||
Other* | 0.68 | % | |||
|
| ||||
100.00 | % | ||||
|
| ||||
* Includes cash, Investment Company, interest and dividend receivable, pending trades and Fund share transactions, and accrued expenses payable.
See Notes to the Financial Statements. |
|
26
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Emerging Markets Value Equity Fund
|
March 31, 2021 |
Shares
| Value
| |||||
Common Stocks — 97.41% | ||||||
Brazil — 2.66% | ||||||
98,100 | Banco do Brasil SA | $ | 532,098 | |||
51,300 | Hypera SA | 292,562 | ||||
56,687 | Sul America SA | 345,241 | ||||
|
| |||||
1,169,901 | ||||||
|
| |||||
Chile — 3.86% | ||||||
45,138 | Antofagasta Plc | 1,051,405 | ||||
25,136 | Inversiones La Construccion SA | 193,640 | ||||
99,462 | SACI Falabella | 451,726 | ||||
|
| |||||
1,696,771 | ||||||
|
| |||||
China — 27.24% | ||||||
10,500 | Alibaba Group Holding Ltd., ADR* | 2,380,665 | ||||
3,100 | Baidu, Inc., ADR* | 674,405 | ||||
304,000 | China Resources Cement Holdings Ltd. | 342,917 | ||||
456,000 | Chinasoft International Ltd. | 494,441 | ||||
484,000 | CSPC Pharmaceutical Group Ltd. | 588,449 | ||||
2,600 | Daqo New Energy Corp., ADR* | 196,300 | ||||
99,583 | Flat Glass Group Co. Ltd., Class H | 304,043 | ||||
51,400 | Gree Electric Appliances, Inc. of Zhuhai, Class A | 493,175 | ||||
317,000 | KWG Group Holdings Ltd. | 545,010 | ||||
571,000 | Lee & Man Paper Manufacturing Ltd. | 526,390 | ||||
90,597 | Longshine Technology Group Co. Ltd., Class A | 216,848 | ||||
3,100 | NetEase, Inc., ADR | 320,106 | ||||
379,000 | Nexteer Automotive Group Ltd. | 468,470 | ||||
386,093 | Ping An Bank Co. Ltd., Class A* | 1,299,763 | ||||
125,499 | Ping An Insurance Group Co. of China Ltd., Series H | 1,501,138 | ||||
29,470 | Sany Heavy Industry Co. Ltd., Class A | 154,442 | ||||
202,500 | Shimao Property Holdings Ltd. | 639,415 | ||||
63,299 | Sieyuan Electric Co. Ltd., Class A | 288,235 | ||||
83,000 | SITC International Holdings Co. Ltd. | 282,474 | ||||
179,600 | Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H | 257,647 | ||||
|
| |||||
11,974,333 | ||||||
|
| |||||
Greece — 0.56% | ||||||
230,308 | Alpha Bank AE* | 247,759 | ||||
|
| |||||
Hong Kong — 2.49% | ||||||
1,833,000 | Pacific Basin Shipping Ltd. | 496,421 | ||||
182,000 | Xinyi Glass Holdings Ltd. | 597,887 | ||||
|
| |||||
1,094,308 | ||||||
|
|
27
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Emerging Markets Value Equity Fund (cont.)
|
March 31, 2021 |
Shares
| Value
| |||||
Hungary — 1.64% | ||||||
48,366 | MOL Hungarian Oil & Gas Plc* | $ | 350,132 | |||
8,650 | OTP Bank Plc* | 369,757 | ||||
|
| |||||
719,889 | ||||||
|
| |||||
India — 7.95% | ||||||
138,664 | Apollo Tyres Ltd.* | 426,226 | ||||
60,644 | Axis Bank Ltd.* | 582,204 | ||||
155,752 | Hindalco Industries Ltd.* | 700,607 | ||||
153,420 | Indiabulls Housing Finance Ltd.* | 415,197 | ||||
29,530 | Mahindra & Mahindra Ltd. | 322,751 | ||||
200,138 | Redington India Ltd.* | 523,437 | ||||
26,777 | Shriram Transport Finance Co. Ltd. | 524,230 | ||||
|
| |||||
3,494,652 | ||||||
|
| |||||
Indonesia — 0.75% | ||||||
834,800 | Bank Negara Indonesia Persero Tbk PT | 329,718 | ||||
|
| |||||
Korea — 16.72% | ||||||
2,227 | Com2uSCorp | 333,233 | ||||
9,673 | DB Insurance Co. Ltd. | 404,489 | ||||
3,290 | E-MART, Inc. | 500,142 | ||||
11,866 | Fila Holdings Corp. | 455,089 | ||||
19,455 | Hana Financial Group, Inc. | 735,846 | ||||
3,583 | Hyundai Motor Co. | 694,412 | ||||
6,097 | LG Corp. | 489,201 | ||||
4,726 | Mando Corp.* | 276,393 | ||||
33,613 | Samsung Electronics Co. Ltd. | 2,431,720 | ||||
5,331 | SK Hynix, Inc. | 629,387 | ||||
3,526 | SKC Co. Ltd. | 403,079 | ||||
|
| |||||
7,352,991 | ||||||
|
| |||||
Mexico — 3.51% | ||||||
84,100 | Cemex SAB de CV, ADR* | 586,177 | ||||
585,514 | Gentera SAB de CV* | 260,680 | ||||
237,800 | PLA Administradora Industrial S de RL de CV, REIT | 351,008 | ||||
73,100 | Regional SAB de CV* | 343,550 | ||||
|
| |||||
1,541,415 | ||||||
|
| |||||
Pakistan — 0.77% | ||||||
448,196 | Habib Bank Ltd. | 341,205 | ||||
|
| |||||
Peru — 0.74% | ||||||
2,400 | Credicorp Ltd. | 327,768 | ||||
|
| |||||
Philippines — 1.01% | ||||||
177,360 | Security Bank Corp. | 443,099 | ||||
|
|
28
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Emerging Markets Value Equity Fund (cont.)
|
March 31, 2021 |
Shares
| Value
| |||||
Russia — 4.63% | ||||||
4,999 | LUKOIL PJSC, ADR | $ | 403,967 | |||
12,065 | MMC Norilsk Nickel PJSC, ADR | 375,997 | ||||
1,414,700 | Sistema PJSFC | 641,022 | ||||
154,700 | VEON Ltd., ADR* | 273,819 | ||||
10,542 | X5 Retail Group NV, GDR | 339,839 | ||||
|
| |||||
2,034,644 | ||||||
|
| |||||
South Africa — 7.75% | ||||||
630,486 | Growthpoint Properties Ltd. | 564,049 | ||||
174,621 | Imperial Logistics Ltd. | 559,373 | ||||
1,184,276 | KAP Industrial Holdings Ltd.* | 331,340 | ||||
24,975 | Mr Price Group Ltd. | 327,137 | ||||
95,427 | MTN Group Ltd. | 560,489 | ||||
4,440 | Naspers Ltd., N Shares | 1,063,426 | ||||
|
| |||||
3,405,814 | ||||||
|
| |||||
Taiwan — 9.41% | ||||||
38,498 | Chailease Holding Co. Ltd. | 266,451 | ||||
47,000 | FLEXium Interconnect, Inc. | 207,791 | ||||
49,979 | Innodisk Corp. | 298,836 | ||||
20,000 | Lotes Co. Ltd. | 351,816 | ||||
14,000 | MediaTek, Inc. | 481,555 | ||||
25,000 | Merida Industry Co. Ltd. | 306,746 | ||||
118,000 | Primax Electronics Ltd. | 264,533 | ||||
93,000 | Taiwan Semiconductor Manufacturing Co. Ltd. | 1,958,507 | ||||
|
| |||||
4,136,235 | ||||||
|
| |||||
Thailand — 0.82% | ||||||
921,600 | Krung Thai Bank Public Co. Ltd., FOR | 360,480 | ||||
|
| |||||
Turkey — 0.72% | ||||||
135,035 | KOC Holding AS | 318,429 | ||||
|
| |||||
United Arab Emirates — 0.86% | ||||||
368,327 | Aldar Properties PJSC | 377,882 | ||||
|
| |||||
United States — 1.41% | ||||||
319,200 | Samsonite International SA*,(a) | 620,762 | ||||
|
| |||||
Vietnam — 1.91% | ||||||
191,475 | Hoa Phat Group JSC | 388,987 | ||||
106,300 | Vinhomes JSC*,(a) | 449,651 | ||||
|
| |||||
838,638 | ||||||
|
| |||||
Total Common Stocks | 42,826,693 | |||||
|
| |||||
(Cost $34,112,550) |
29
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Emerging Markets Value Equity Fund (cont.)
|
March 31, 2020 |
Shares
| Value
| |||||
Preferred Stocks — 2.20% | ||||||
Brazil — 1.79% | ||||||
51,300 | Centrais Eletricas Brasileiras SA, Class B | $ | 315,348 | |||
110,100 | Petroleo Brasileiro SA | 473,172 | ||||
|
| |||||
788,520 | ||||||
|
| |||||
Colombia — 0.41% | ||||||
21,774 | Banco Davivienda SA | 177,500 | ||||
|
| |||||
Total Preferred Stocks | 966,020 | |||||
|
| |||||
(Cost $975,336) | ||||||
Investment Company — 0.38% | ||||||
166,783 | U.S. Government Money Market Fund, RBC Institutional Class 1 (b) | 166,783 | ||||
|
| |||||
Total Investment Company | 166,783 | |||||
|
| |||||
(Cost $166,783) | ||||||
Total Investments | $ | 43,959,496 | ||||
(Cost $35,254,669)(c) — 99.99% | ||||||
Other assets in excess of liabilities — 0.01% | 2,691 | |||||
|
| |||||
NET ASSETS — 100.00% | $ | 43,962,187 | ||||
|
|
* | Non-income producing security. |
(a) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(b) | Affiliated investment. |
(c) | See Notes to Schedules of Portfolio Investments for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Abbreviations used are defined below:
ADR - American Depositary Receipt
FOR - Foreign Ownership Receipt
GDR - Global Depositary Receipt
REIT - Real Estate Investment Trust
30
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Emerging Markets Value Equity Fund (cont.)
|
March 31, 2021 |
Portfolio Diversification (Unaudited)
Industries | Percentage of Net Assets | ||||
Financials | 22.75 | % | |||
Information Technology | 19.74 | % | |||
Consumer Discretionary | 18.85 | % | |||
Materials | 9.95 | % | |||
Industrials | 8.59 | % | |||
Real Estate | 6.66 | % | |||
Communication Services | 5.65 | % | |||
Energy | 2.79 | % | |||
Health Care | 2.00 | % | |||
Consumer Staples | 1.91 | % | |||
Utilities | 0.72 | % | |||
Other* | 0.39 | % | |||
|
| ||||
100.00 | % | ||||
|
| ||||
* Includes cash, Investment Company, interest and dividend receivable, pending trades and Fund share transactions, and accrued expenses payable.
See Notes to the Financial Statements.
|
|
31
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Global Opportunities Fund
|
March 31, 2021 |
Shares | Value | |||||
Common Stocks — 99.02% | ||||||
Argentina — 1.00% | ||||||
1,800 | MercadoLibre, Inc.* | $ | 2,649,852 | |||
|
| |||||
Belgium — 3.11% | ||||||
131,069 | Anheuser-Busch InBev NV | 8,239,370 | ||||
|
| |||||
Denmark — 2.78% | ||||||
45,495 | Orsted A/S(a) | 7,345,867 | ||||
|
| |||||
Finland — 2.30% | ||||||
114,444 | Neste Oyj | 6,077,632 | ||||
|
| |||||
Germany — 3.74% | ||||||
180,349 | Deutsche Post AG | 9,894,103 | ||||
|
| |||||
Hong Kong — 3.60% | ||||||
777,894 | AIA Group Ltd. | 9,518,910 | ||||
|
| |||||
Japan — 3.48% | ||||||
69,398 | MISUMI Group, Inc. | 2,021,532 | ||||
58,894 | Nidec Corp. | 7,180,818 | ||||
|
| |||||
9,202,350 | ||||||
|
| |||||
Netherlands — 1.44% | ||||||
1,713 | Adyen NV*,(a) | 3,822,397 | ||||
|
| |||||
South Africa — 1.93% | ||||||
21,390 | Naspers Ltd., N Shares | 5,123,128 | ||||
|
| |||||
Spain — 3.84% | ||||||
307,613 | Industria de Diseno Textil SA | 10,163,521 | ||||
|
| |||||
Switzerland — 4.77% | ||||||
38,968 | Roche Holding AG | 12,623,427 | ||||
|
| |||||
Taiwan — 2.85% | ||||||
63,700 | Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 7,534,436 | ||||
|
| |||||
United Kingdom — 6.41% | ||||||
63,065 | Croda International Plc | 5,517,955 | ||||
118,356 | InterContinental Hotels Group Plc* | 8,139,269 | ||||
187,786 | St. James’s Place Plc | 3,296,828 | ||||
|
| |||||
16,954,052 | ||||||
|
|
32
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Global Opportunities Fund (cont.)
|
March 31, 2021 |
Shares | Value | |||||
United States — 57.77% | ||||||
6,178 | Alphabet, Inc., Class A* | $ | 12,742,249 | |||
2,930 | Amazon.com, Inc.* | 9,065,654 | ||||
104,700 | Blackstone Group, Inc. (The), Class A | 7,803,291 | ||||
40,100 | Bluebird Bio, Inc.* | 1,209,015 | ||||
36,500 | Danaher Corp. | 8,215,420 | ||||
47,600 | Ecolab, Inc. | 10,189,732 | ||||
28,712 | Estee Lauder Cos, Inc. (The), Class A | 8,350,885 | ||||
62,800 | First Republic Bank | 10,471,900 | ||||
131,650 | Fortive Corp. | 9,299,756 | ||||
28,800 | Incyte Corp.* | 2,340,576 | ||||
51,200 | JPMorgan Chase & Co. | 7,794,176 | ||||
10,300 | MarketAxess Holdings, Inc. | 5,128,576 | ||||
59,800 | Microsoft Corp. | 14,099,046 | ||||
9,400 | NVIDIA Corp. | 5,018,942 | ||||
19,700 | SVB Financial Group* | 9,725,102 | ||||
114,800 | TJX Cos, Inc. (The) | 7,594,020 | ||||
56,400 | T-Mobile US, Inc.* | 7,066,356 | ||||
7,600 | Twilio, Inc., Class A* | 2,589,776 | ||||
28,300 | UnitedHealth Group, Inc. | 10,529,581 | ||||
14,500 | Workday, Inc., Class A* | 3,602,235 | ||||
|
| |||||
152,836,288 | ||||||
|
| |||||
Total Common Stocks | 261,985,333 | |||||
|
| |||||
(Cost $234,197,146) | ||||||
Investment Company — 2.77% | ||||||
7,322,625 | U.S. Government Money Market Fund, | |||||
RBC Institutional Class 1 (b) | 7,322,625 | |||||
|
| |||||
Total Investment Company | 7,322,625 | |||||
|
| |||||
(Cost $7,322,625) | ||||||
Total Investments | $ | 269,307,958 | ||||
(Cost $241,519,771)(c) — 101.79% | ||||||
Liabilities in excess of other assets — (1.79)% | (4,736,383 | ) | ||||
|
| |||||
NET ASSETS — 100.00% | $ | 264,571,575 | ||||
|
|
* | Non-income producing security. |
(a) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(b) | Affiliated investment. |
(c) | See Notes to Schedules of Portfolio Investments for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
33
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Global Opportunities Fund (cont.)
|
March 31, 2021 |
Abbreviations used are defined below:
ADR - American Depositary Receipt
Portfolio Diversification (Unaudited)
Industries | Percentage of Net Assets | ||||
Financials | 20.31 | % | |||
Consumer Discretionary | 16.15 | % | |||
Information Technology | 13.86 | % | |||
Health Care | 13.20 | % | |||
Industrials | 10.73 | % | |||
Communication Services | 7.49 | % | |||
Consumer Staples | 6.27 | % | |||
Materials | 5.94 | % | |||
Utilities | 2.77 | % | |||
Energy | 2.30 | % | |||
Other* | 0.98 | % | |||
|
| ||||
100.00 | % | ||||
|
|
* | Includes cash, Investment Company, interest and dividend receivable, pending trades and Fund share transactions, and accrued expenses payable. |
See Notes to the Financial Statements.
34
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC International Opportunities Fund
|
March 31, 2021 |
Shares | Value | |||||
Common Stocks — 98.57% | ||||||
Argentina — 1.55% | ||||||
1,800 | MercadoLibre, Inc.* | $ | 2,649,852 | |||
|
| |||||
Australia — 4.46% | ||||||
976,410 | Oil Search Ltd. | 3,052,828 | ||||
34,557 | Rio Tinto Plc | 2,636,291 | ||||
244,862 | Treasury Wine Estates Ltd. | 1,930,010 | ||||
|
| |||||
7,619,129 | ||||||
|
| |||||
Austria — 1.52% | ||||||
76,806 | Erste Group Bank AG* | 2,602,059 | ||||
|
| |||||
Belgium — 2.85% | ||||||
77,516 | Anheuser-Busch InBev NV | 4,872,876 | ||||
|
| |||||
Denmark — 4.06% | ||||||
42,935 | Orsted A/S(a) | 6,932,516 | ||||
|
| |||||
Finland — 3.26% | ||||||
104,786 | Neste Oyj | 5,564,737 | ||||
|
| |||||
Germany — 4.65% | ||||||
144,747 | Deutsche Post AG | 7,940,946 | ||||
|
| |||||
Hong Kong — 4.68% | ||||||
653,000 | AIA Group Ltd. | 7,990,611 | ||||
|
| |||||
India — 4.38% | ||||||
96,366 | HDFC Bank Ltd., ADR* | 7,486,675 | ||||
|
| |||||
Ireland — 1.01% | ||||||
13,689 | Kerry Group Plc, Class A | 1,709,607 | ||||
142 | Kerry Group Plc, Class A | 17,866 | ||||
|
| |||||
1,727,473 | ||||||
|
| |||||
Japan — 12.97% | ||||||
270,900 | Astellas Pharma, Inc. | 4,173,024 | ||||
104,800 | MISUMI Group, Inc. | 3,052,776 | ||||
71,502 | Nidec Corp. | 8,718,084 | ||||
23,300 | Oriental Land Co. Ltd | 3,506,212 | ||||
55,200 | Recruit Holdings Co. Ltd. | 2,710,663 | ||||
|
| |||||
22,160,759 | ||||||
|
|
35
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC International Opportunities Fund (cont.)
|
March 31, 2021 |
Shares | Value | |||||
Netherlands — 3.30% | ||||||
1,401 | Adyen NV*,(a) | $ | 3,126,200 | |||
28,844 | Wolters Kluwer NV | 2,505,242 | ||||
|
| |||||
5,631,442 | ||||||
|
| |||||
Singapore — 2.47% | ||||||
197,032 | DBS Group Holdings Ltd. | 4,224,640 | ||||
|
| |||||
South Africa — 5.96% | ||||||
42,477 | Naspers Ltd., N Shares | 10,173,684 | ||||
|
| |||||
Spain — 4.12% | ||||||
212,982 | Industria de Diseno Textil SA | 7,036,916 | ||||
|
| |||||
Sweden — 0.98% | ||||||
52,770 | Essity AB, Class B | 1,667,804 | ||||
|
| |||||
Switzerland — 10.03% | ||||||
990 | Barry Callebaut AG | 2,241,443 | ||||
5,414 | Partners Group Holding AG | 6,918,691 | ||||
24,627 | Roche Holding AG | 7,977,754 | ||||
|
| |||||
17,137,888 | ||||||
|
| |||||
Taiwan — 7.47% | ||||||
3,061,208 | E.Sun Financial Holding Co. Ltd. | 2,802,921 | ||||
84,218 | Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 9,961,305 | ||||
|
| |||||
12,764,226 | ||||||
|
| |||||
Thailand — 3.07% | ||||||
502,900 | Kasikornbank Pcl, NVDR | 2,338,596 | ||||
2,781,700 | Minor International PCL* | 2,901,457 | ||||
|
| |||||
5,240,053 | ||||||
|
| |||||
United Kingdom — 13.45% | ||||||
62,077 | Croda International Plc | 5,431,508 | ||||
93,643 | InterContinental Hotels Group Plc* | 6,439,772 | ||||
480,529 | Legal & General Group Plc | 1,845,000 | ||||
12,887 | Linde Plc | 3,614,855 | ||||
321,185 | St. James’s Place Plc | 5,638,822 | ||||
|
| |||||
22,969,957 | ||||||
|
| |||||
United States — 0.73% | ||||||
9,700 | CyberArk Software Ltd.* | 1,254,598 | ||||
|
|
36
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC International Opportunities Fund (cont.)
|
March 31, 2021 |
Shares | Value | |||||
Zambia — 1.60% |
| |||||
142,971 | First Quantum Minerals Ltd. | $ | 2,724,720 | |||
|
| |||||
Total Common Stocks | 168,373,561 | |||||
|
| |||||
(Cost $125,960,869) | ||||||
Investment Company — 1.66% |
| |||||
2,839,826 | U.S. Government Money Market Fund, | |||||
RBC Institutional Class 1 (b) | 2,839,826 | |||||
|
| |||||
Total Investment Company | 2,839,826 | |||||
|
| |||||
(Cost $2,839,827) | ||||||
Total Investments | $ | 171,213,387 | ||||
(Cost $128,800,696)(c) — 100.23% | ||||||
Liabilities in excess of other assets — (0.23)% | (384,978) | |||||
|
| |||||
NET ASSETS — 100.00% | $ | 170,828,409 | ||||
|
|
* | Non-income producing security. |
(a) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(b) | Affiliated investment. |
(c) | See Notes to Schedules of Portfolio Investments for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Abbreviations used are defined below: |
ADR - American Depositary Receipt |
NVDR - Non-Voting Depository Receipt |
37
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC International Opportunities Fund (cont.)
|
March 31, 2021 |
Portfolio Diversification (Unaudited)
Industries | Percentage of Net Assets | ||||
Financials | 24.50 | % | |||
Consumer Discretionary | 19.15 | % | |||
Industrials | 14.59 | % | |||
Materials | 8.43 | % | |||
Information Technology | 8.40 | % | |||
Consumer Staples | 7.28 | % | |||
Health Care | 7.11 | % | |||
Energy | 5.05 | % | |||
Utilities | 4.06 | % | |||
Other* | 1.43 | % | |||
|
| ||||
100.00 | % | ||||
|
|
* | Includes cash, Investment Company, interest and dividend receivable, pending trades and Fund share transactions, and accrued expenses payable. |
See Notes to the Financial Statements.
38
|
Statements of Assets and Liabilities
|
March 31, 2021 |
RBC Emerging Markets | RBC Emerging | RBC Emerging Markets Value Equity Fund | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||
Investments in securities, at value: | ||||||||||||||||||||||||||||||
Unaffiliated investments (cost $2,246,692,912, $8,725,538 and $35,087,886, respectively) | $ | 2,662,988,157 | $ | 10,242,437 | $ | 43,792,713 | ||||||||||||||||||||||||
Affiliated investments (cost $0, $45,100 and $166,783, respectively) | — | 45,100 | 166,783 | |||||||||||||||||||||||||||
Foreign currency, at value (cost $2,921,053, $9,259 and $6,698, respectively) | 3,001,604 | 9,705 | 6,698 | |||||||||||||||||||||||||||
Interest and dividend receivable | 4,914,758 | 21,659 | 146,587 | |||||||||||||||||||||||||||
Receivable from advisor | — | 4,183 | 52,258 | |||||||||||||||||||||||||||
Receivable for capital shares issued | 6,186,166 | — | 2,768 | |||||||||||||||||||||||||||
Receivable for investments sold | 2,742,714 | 93,996 | 140,866 | |||||||||||||||||||||||||||
Prepaid expenses and other assets | 34,392 | 17,171 | 15,230 | |||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Total Assets | 2,679,867,791 | 10,434,251 | 44,323,903 | |||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||
Cash overdraft | 110,003 | — | — | |||||||||||||||||||||||||||
Foreign withholding tax payable | 10,190,110 | 55,491 | 154,770 | |||||||||||||||||||||||||||
Income tax payable | 37,319 | 30,993 | 819 | |||||||||||||||||||||||||||
Payable for capital shares redeemed | 772,325 | — | — | |||||||||||||||||||||||||||
Payable for investments purchased | 3,742,799 | 1,222 | 171,629 | |||||||||||||||||||||||||||
Accrued expenses and other payables: | ||||||||||||||||||||||||||||||
Investment advisory fees | 1,205,580 | — | — | |||||||||||||||||||||||||||
Accounting fees | 27,310 | 7,037 | 7,319 | |||||||||||||||||||||||||||
Audit fees | 2,101 | 2,101 | 2,101 | |||||||||||||||||||||||||||
Trustees’ fees | 3,565 | 27 | 51 | |||||||||||||||||||||||||||
Distribution fees | 61,820 | 11,585 | — | |||||||||||||||||||||||||||
Custodian fees | 137,046 | 3,343 | 10,408 | |||||||||||||||||||||||||||
Shareholder reports | 24,709 | 3,239 | 3,089 | |||||||||||||||||||||||||||
Transfer agent fees | 413,615 | 2,760 | 6,463 | |||||||||||||||||||||||||||
Other | 30,098 | 3,634 | 5,067 | |||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Total Liabilities | 16,758,400 | 121,432 | 361,716 | |||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Net Assets | $ | 2,663,109,391 | $ | 10,312,819 | $ | 43,962,187 | ||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Net Assets Consists of: | ||||||||||||||||||||||||||||||
Capital | $ | 2,230,136,918 | $ | 9,716,638 | $ | 33,197,240 | ||||||||||||||||||||||||
Accumulated earnings | 432,972,473 | 596,181 | 10,764,947 | |||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Net Assets | $ | 2,663,109,391 | $ | 10,312,819 | $ | 43,962,187 | ||||||||||||||||||||||||
|
|
|
|
|
|
39
FINANCIAL STATEMENTS
|
Statements of Assets and Liabilities (cont.)
|
March 31, 2021 |
RBC Emerging Markets | RBC Emerging | RBC Emerging | ||||||||||||||||||||||||||||
Net Assets | ||||||||||||||||||||||||||||||
Class A | $ | 287,861,896 | $ | 3,002,128 | $ | N/A | ||||||||||||||||||||||||
Class I | 2,069,694,506 | 7,310,691 | 40,956,282 | |||||||||||||||||||||||||||
Class R6 | 305,552,989 | N/A | 3,005,905 | |||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Total | $2,663,109,391 | $ | 10,312,819 | $ | 43,962,187 | |||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Shares Outstanding (Unlimited number of shares authorized, no par value): | ||||||||||||||||||||||||||||||
Class A | 19,657,550 | 283,049 | N/A | |||||||||||||||||||||||||||
Class I | 138,848,532 | 683,858 | 3,648,816 | |||||||||||||||||||||||||||
Class R6 | 20,401,183 | N/A | 275,799 | |||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Total | 178,907,265 | 966,907 | 3,924,615 | |||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Net Asset Values and Redemption Prices Per Share: | ||||||||||||||||||||||||||||||
Class A | $ | 14.64 | $ | 10.61 | $ | N/A | ||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Class I | $ | 14.91 | $ | 10.69 | $ | 11.22 | ||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Class R6 | $ | 14.98 | $ | N/A | $ | 10.90 | ||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Maximum Offering Price Per Share: | ||||||||||||||||||||||||||||||
Class A | $ | 15.53 | $ | 11.26 | $ | N/A | ||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
Maximum Sales Charge - Class A | 5.75 | % | 5.75 | % | N/A | |||||||||||||||||||||||||
|
|
|
|
|
|
40
FINANCIAL STATEMENTS
|
Statements of Assets and Liabilities (cont.)
|
March 31, 2021 |
RBC Global Opportunities Fund | RBC International Opportunities Fund | |||||||||||||||
Assets: | ||||||||||||||||
Investments in securities, at value: | ||||||||||||||||
Unaffiliated investments (cost $234,197,146 and $125,960,869, respectively) | $ | 261,985,333 | $ | 168,373,561 | ||||||||||||
Affiliated investments (cost $7,322,625 and $2,839,827, respectively) | 7,322,625 | 2,839,826 | ||||||||||||||
Cash | — | 9,983 | ||||||||||||||
Foreign currency, at value (cost $206,333 and $0, respectively) | 200,918 | — | ||||||||||||||
Interest and dividend receivable | 205,216 | 590,531 | ||||||||||||||
Receivable from advisor | — | 50,209 | ||||||||||||||
Receivable for capital shares issued | 640,901 | 250,147 | ||||||||||||||
Prepaid expenses and other assets | 7,461 | 7,696 | ||||||||||||||
|
|
|
| |||||||||||||
Total Assets | 270,362,454 | 172,121,953 | ||||||||||||||
|
|
|
| |||||||||||||
Liabilities: | ||||||||||||||||
Cash overdraft | 10,086 | — | ||||||||||||||
Income tax payable | 820 | 1,344 | ||||||||||||||
Payable for capital shares redeemed | 53,321 | 11,403 | ||||||||||||||
Payable for investments purchased | 5,642,531 | 1,174,894 | ||||||||||||||
Accrued expenses and other payables: | ||||||||||||||||
Investment advisory fees | 46,090 | — | ||||||||||||||
Accounting fees | 8,456 | 8,341 | ||||||||||||||
Audit fees | 2,101 | 2,101 | ||||||||||||||
Trustees’ fees | 126 | 241 | ||||||||||||||
Distribution fees | 32 | 34 | ||||||||||||||
Custodian fees | 6,863 | 14,807 | ||||||||||||||
Shareholder reports | 4,031 | 4,033 | ||||||||||||||
Transfer agent fees | 14,276 | 72,225 | ||||||||||||||
Other | 2,146 | 4,121 | ||||||||||||||
|
|
|
| |||||||||||||
Total Liabilities | 5,790,879 | 1,293,544 | ||||||||||||||
|
|
|
| |||||||||||||
Net Assets | $ | 264,571,575 | $ | 170,828,409 | ||||||||||||
|
|
|
| |||||||||||||
Net Assets Consists of: | ||||||||||||||||
Capital | $ | 225,451,519 | $ | 129,855,152 | ||||||||||||
Accumulated earnings | 39,120,056 | 40,973,257 | ||||||||||||||
|
|
|
| |||||||||||||
Net Assets | $ | 264,571,575 | $ | 170,828,409 | ||||||||||||
|
|
|
|
41
FINANCIAL STATEMENTS
|
Statements of Assets and Liabilities (cont.)
|
March 31, 2021 |
RBC Global | RBC International | |||||||||||||||
Net Assets | ||||||||||||||||
Class A | $ | 12,968 | $ | 22,461 | ||||||||||||
Class I | 144,339,105 | 170,788,288 | ||||||||||||||
Class R6 | 120,219,502 | 17,660 | ||||||||||||||
|
|
|
| |||||||||||||
Total | $ | 264,571,575 | $ | 170,828,409 | ||||||||||||
|
|
|
| |||||||||||||
Shares Outstanding (Unlimited number of shares authorized, no par value): | ||||||||||||||||
Class A | 669 | 1,738 | ||||||||||||||
Class I | 7,438,104 | 13,166,644 | ||||||||||||||
Class R6 | 6,175,789 | 1,354 | ||||||||||||||
|
|
|
| |||||||||||||
Total | 13,614,562 | 13,169,736 | ||||||||||||||
|
|
|
| |||||||||||||
Net Asset Values and Redemption Prices Per Share: | ||||||||||||||||
Class A | $ | 19.39 | $ | 12.92 | ||||||||||||
|
|
|
| |||||||||||||
Class I | $ | 19.41 | $ | 12.97 | ||||||||||||
|
|
|
| |||||||||||||
Class R6 | $ | 19.47 | $ | 13.05 | ||||||||||||
|
|
|
| |||||||||||||
Maximum Offering Price Per Share: | ||||||||||||||||
Class A | $ | 20.57 | $ | 13.71 | ||||||||||||
|
|
|
| |||||||||||||
Maximum Sales Charge - Class A | 5.75 | % | 5.75 | % | ||||||||||||
|
|
|
|
See Notes to the Financial Statements.
42
FINANCIAL STATEMENTS
|
|
For the Year Ended March 31, 2021 | ||||||||||||||||||||||||
RBC Emerging Markets Equity Fund | RBC Emerging Markets Small Cap Equity Fund | RBC Emerging Markets Value Equity Fund | ||||||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||
Interest income | $ | 9,763 | $ | 122 | $ | 44 | ||||||||||||||||||
Dividend income - unaffiliated | 29,801,893 | 219,896 | 502,163 | |||||||||||||||||||||
Dividend income - affiliated | 8,797 | 151 | 36 | |||||||||||||||||||||
Foreign tax withholding | (3,558,278 | ) | (33,546 | ) | (66,998 | ) | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total Investment Income | 26,262,175 | 186,623 | 435,245 | |||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Investment advisory fees | 14,526,622 | 93,902 | 195,064 | |||||||||||||||||||||
Distribution fees–Class A | 104,567 | 6,310 | — | |||||||||||||||||||||
Accounting fees | 157,784 | 63,012 | 72,342 | |||||||||||||||||||||
Audit fees | 37,818 | 37,818 | 37,818 | |||||||||||||||||||||
Custodian fees | 755,996 | 28,771 | 83,291 | |||||||||||||||||||||
Insurance fees | 12,112 | 3,758 | 3,107 | |||||||||||||||||||||
Legal fees | 75,857 | 605 | 390 | |||||||||||||||||||||
Registrations and filing fees | 116,372 | 51,033 | 53,884 | |||||||||||||||||||||
Shareholder reports | 94,829 | 19,938 | 18,359 | |||||||||||||||||||||
Transfer agent fees–Class A | 107,698 | 3,890 | — | |||||||||||||||||||||
Transfer agent fees–Class I | 1,707,205 | 5,438 | 22,264 | |||||||||||||||||||||
Transfer agent fees–Class R6 | 4,751 | — | 3,544 | |||||||||||||||||||||
Trustees’ fees and expenses | 66,151 | 330 | 883 | |||||||||||||||||||||
Tax expense | 58,308 | 36,466 | 19,742 | |||||||||||||||||||||
Other fees | 38,478 | 4,195 | 4,139 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total expenses before fee waiver/reimbursement | 17,864,548 | 355,466 | 514,827 | |||||||||||||||||||||
Expenses waived/reimbursed by: | ||||||||||||||||||||||||
Advisor | (1,780,697 | ) | (237,708 | ) | (284,860 | ) | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Net expenses | 16,083,851 | 117,758 | 229,967 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Net Investment Income | 10,178,324 | 68,865 | 205,278 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Realized/Unrealized Gains/(Losses): | ||||||||||||||||||||||||
Net realized gains/(losses) on: | ||||||||||||||||||||||||
Investment transactions | 55,743,253 | (317,268 | ) | 3,159,944 | ||||||||||||||||||||
Foreign currency transactions | (2,243,752 | ) | (15,055 | ) | (83,584 | ) | ||||||||||||||||||
Foreign tax | (231,342 | ) | (9,842 | ) | (78,504 | ) | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Net realized gains/(losses) | 53,268,159 | (342,165 | ) | 2,997,856 | ||||||||||||||||||||
Net change in unrealized appreciation/ (depreciation) on: | ||||||||||||||||||||||||
Investments | 658,851,643 | 4,266,608 | 9,822,308 | |||||||||||||||||||||
Foreign currency | 89,887 | 1,423 | (3,936 | ) | ||||||||||||||||||||
Foreign tax | (10,003,295 | ) | (53,666 | ) | (154,770 | ) | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Net unrealized gains | 648,938,235 | 4,214,365 | 9,663,602 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Change in net assets resulting from operations | $ | 712,384,718 | $ | 3,941,065 | $ | 12,866,736 | ||||||||||||||||||
|
|
|
|
|
|
43
FINANCIAL STATEMENTS
|
Statements of Operations (cont.)
|
For the Year Ended March 31, 2021 | ||||||||||||||||
RBC Global Opportunities Fund | RBC International Opportunities Fund | |||||||||||||||
Investment Income: | ||||||||||||||||
Interest income | $ | 28 | $ | 659 | ||||||||||||
Dividend income - unaffiliated | 1,409,440 | 2,144,386 | ||||||||||||||
Dividend income - affiliated | 432 | 638 | ||||||||||||||
Foreign tax withholding | (111,395 | ) | (230,319 | ) | ||||||||||||
|
|
|
| |||||||||||||
Total Investment Income | 1,298,505 | 1,915,364 | ||||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 848,905 | 975,507 | ||||||||||||||
Distribution fees–Class A | 32 | 430 | ||||||||||||||
Accounting fees | 56,163 | 62,267 | ||||||||||||||
Audit fees | 45,818 | 45,818 | ||||||||||||||
Custodian fees | 39,993 | 61,025 | ||||||||||||||
Insurance fees | 3,758 | 3,757 | ||||||||||||||
Legal fees | 22,276 | 24,192 | ||||||||||||||
Registrations and filing fees | 98,031 | 90,750 | ||||||||||||||
Shareholder reports | 22,971 | 23,022 | ||||||||||||||
Transfer agent fees–Class A | 4,184 | 4,242 | ||||||||||||||
Transfer agent fees–Class I | 62,932 | 209,924 | ||||||||||||||
Transfer agent fees–Class R6 | 4,599 | 3,545 | ||||||||||||||
Trustees’ fees and expenses | 4,475 | 4,986 | ||||||||||||||
Tax expense | 5,001 | 5,942 | ||||||||||||||
Other fees | 6,539 | 7,165 | ||||||||||||||
|
|
|
| |||||||||||||
Total expenses before fee waiver/reimbursement | 1,225,677 | 1,522,572 | ||||||||||||||
Expenses waived/reimbursed by: | ||||||||||||||||
Advisor | (273,881 | ) | (412,004 | ) | ||||||||||||
|
|
|
| |||||||||||||
Net expenses | 951,796 | 1,110,568 | ||||||||||||||
|
|
|
| |||||||||||||
Net Investment Income | 346,709 | 804,796 | ||||||||||||||
|
|
|
| |||||||||||||
Realized/Unrealized Gains/(Losses): | ||||||||||||||||
Net realized gains/(losses) on: | ||||||||||||||||
Investment transactions | 15,764,884 | 6,457,436 | ||||||||||||||
Foreign currency transactions | (320,969 | ) | (343,734 | ) | ||||||||||||
|
|
|
| |||||||||||||
Net realized gains | 15,443,915 | 6,113,702 | ||||||||||||||
Net change in unrealized appreciation/ (depreciation) on: | ||||||||||||||||
Investments | 35,923,885 | 56,235,076 | ||||||||||||||
Foreign currency | (13,694 | ) | 16,119 | |||||||||||||
|
|
|
| |||||||||||||
Net unrealized gains | 35,910,191 | 56,251,195 | ||||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from operations | $ | 51,700,815 | $ | 63,169,693 | ||||||||||||
|
|
|
|
See Notes to the Financial Statements.
44
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets
|
RBC Emerging Markets Equity Fund | ||||||||
For the Year Ended March 31, 2021 | For the Year Ended March 31, 2020 | |||||||
From Investment Activities | ||||||||
Operations: | ||||||||
Net investment income | $ | 10,178,324 | $ | 45,574,782 | ||||
Net realized gains/(losses) from investments and foreign currency | 53,268,159 | (15,090,042 | ) | |||||
Net change in unrealized appreciation/(depreciation) on investments and foreign currency | 648,938,235 | (284,518,030 | ) | |||||
|
|
|
| |||||
Change in net assets resulting from operations | 712,384,718 | (254,033,290 | ) | |||||
|
|
|
| |||||
Distributions to Shareholders: | ||||||||
Class A | (163,602 | ) | (792,363 | ) | ||||
Class I | (18,319,080 | ) | (39,879,351 | ) | ||||
Class R6 | (2,504,202 | ) | (4,632,007 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from shareholder distributions | (20,986,884 | ) | (45,303,721 | ) | ||||
|
|
|
| |||||
Capital Transactions: | ||||||||
Proceeds from shares issued | 1,040,108,368 | 767,468,173 | ||||||
Distributions reinvested | 19,305,459 | 41,681,053 | ||||||
Cost of shares redeemed | (300,371,017 | ) | (177,297,013 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from capital transactions | 759,042,810 | 631,852,213 | ||||||
|
|
|
| |||||
Net increase in net assets | 1,450,440,644 | 332,515,202 | ||||||
Net Assets: | ||||||||
Beginning of year | 1,212,668,747 | 880,153,545 | ||||||
|
|
|
| |||||
End of year | $ | 2,663,109,391 | $ | 1,212,668,747 | ||||
|
|
|
| |||||
Share Transactions: | ||||||||
Issued | 75,521,009 | 64,026,033 | ||||||
Reinvested | 1,367,719 | 3,341,903 | ||||||
Redeemed | (23,315,707 | ) | (15,290,238 | ) | ||||
|
|
|
| |||||
Change in shares resulting from capital transactions | 53,573,021 | 52,077,698 | ||||||
|
|
|
|
See Notes to the Financial Statements.
45
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets
|
RBC Emerging Markets Small Cap Equity Fund | ||||||||||||||||
For the Year Ended March 31, 2021 | For the Year Ended March 31, 2020 | |||||||||||||||
From Investment Activities | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 68,865 | $ | 131,375 | ||||||||||||
Net realized losses from investments and foreign currency | (342,165 | ) | (241,611 | ) | ||||||||||||
Net change in unrealized appreciation/(depreciation) on investments and foreign currency | 4,214,365 | (3,047,975 | ) | |||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from operations | 3,941,065 | (3,158,211 | ) | |||||||||||||
|
|
|
| |||||||||||||
Distributions to Shareholders: | ||||||||||||||||
Class A | — | (135,440 | ) | |||||||||||||
Class I | (11,974 | ) | (318,004 | ) | ||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from shareholder distributions | (11,974 | ) | (453,444 | ) | ||||||||||||
|
|
|
| |||||||||||||
Capital Transactions: | ||||||||||||||||
Proceeds from shares issued | 18,240 | 725,547 | ||||||||||||||
Distributions reinvested | 11,974 | 452,240 | ||||||||||||||
Cost of shares redeemed | (176,203 | ) | (284,449 | ) | ||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from capital transactions | (145,989 | ) | 893,338 | |||||||||||||
|
|
|
| |||||||||||||
Net increase/(decrease) in net assets | 3,783,102 | (2,718,317 | ) | |||||||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 6,529,717 | 9,248,034 | ||||||||||||||
|
|
|
| |||||||||||||
End of year | $ | 10,312,819 | $ | 6,529,717 | ||||||||||||
|
|
|
| |||||||||||||
Share Transactions: | ||||||||||||||||
Issued | 2,050 | 75,212 | ||||||||||||||
Reinvested | 1,217 | 48,050 | ||||||||||||||
Redeemed | (20,258 | ) | (34,117 | ) | ||||||||||||
|
|
|
| |||||||||||||
Change in shares resulting from capital transactions | (16,991 | ) | 89,145 | |||||||||||||
|
|
|
|
See Notes to the Financial Statements.
46
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets
|
RBC Emerging Markets Value Equity Fund | ||||||||||||||||
For the Year Ended March 31, 2021 | For the Year Ended March 31, 2020 | |||||||||||||||
From Investment Activities | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 205,278 | $ | 172,858 | ||||||||||||
Net realized gains/(losses) from investments and foreign currency | 2,997,856 | (311,462 | ) | |||||||||||||
Net change in unrealized appreciation/(depreciation) on investments and foreign currency | 9,663,602 | (945,704 | ) | |||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from operations | 12,866,736 | (1,084,308 | ) | |||||||||||||
|
|
|
| |||||||||||||
Distributions to Shareholders: | ||||||||||||||||
Class I | (149,230 | ) | (88,926 | ) | ||||||||||||
Class R6 | (86,448 | ) | (90,889 | ) | ||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from shareholder distributions | (235,678 | ) | (179,815 | ) | ||||||||||||
|
|
|
| |||||||||||||
Capital Transactions: | ||||||||||||||||
Proceeds from shares issued | 29,825,722 | 65,059 | ||||||||||||||
Distributions reinvested | 235,678 | 179,815 | ||||||||||||||
Cost of shares redeemed | (2,204,799 | ) | — | |||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from capital transactions | 27,856,601 | 244,874 | ||||||||||||||
|
|
|
| |||||||||||||
Payment by broker | — | 6,425 | ||||||||||||||
|
|
|
| |||||||||||||
Net increase/(decrease) in net assets | 40,487,659 | (1,012,824 | ) | |||||||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 3,474,528 | 4,487,352 | ||||||||||||||
|
|
|
| |||||||||||||
End of year | $ | 43,962,187 | $ | 3,474,528 | ||||||||||||
|
|
|
| |||||||||||||
Share Transactions: | ||||||||||||||||
Issued | 3,554,158 | 7,326 | ||||||||||||||
Reinvested | 23,802 | 20,469 | ||||||||||||||
Redeemed | (194,642 | ) | — | |||||||||||||
|
|
|
| |||||||||||||
Change in shares resulting from capital transactions | 3,383,318 | 27,795 | ||||||||||||||
|
|
|
|
See Notes to the Financial Statements.
47
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets
|
RBC Global Opportunities Fund | ||||||||||||
For the Year Ended March 31, 2021 | For the Year Ended March 31, 2020 | |||||||||||
From Investment Activities | ||||||||||||
Operations: | ||||||||||||
Net investment income | $ | 346,709 | $ | 669,761 | ||||||||
Net realized gains from investments and foreign currency | 15,443,915 | 202,957 | ||||||||||
Net change in unrealized appreciation/(depreciation) on investments and foreign currency | 35,910,191 | (10,071,883 | ) | |||||||||
|
|
|
| |||||||||
Change in net assets resulting from operations | 51,700,815 | (9,199,165 | ) | |||||||||
|
|
|
| |||||||||
Distributions to Shareholders: | ||||||||||||
Class A | (317 | ) | — | |||||||||
Class I | (1,917,882 | ) | (1,745,323 | ) | ||||||||
Class R6 | (2,159,636 | ) | (2,036 | ) | ||||||||
|
|
|
| |||||||||
Change in net assets resulting from shareholder distributions | (4,077,835 | ) | (1,747,359 | ) | ||||||||
|
|
|
| |||||||||
Capital Transactions: | ||||||||||||
Proceeds from shares issued | 230,249,771 | 58,909,583 | ||||||||||
Distributions reinvested | 3,985,805 | 1,721,944 | ||||||||||
Cost of shares redeemed | (76,173,153 | ) | (9,727,463 | ) | ||||||||
|
|
|
| |||||||||
Change in net assets resulting from capital transactions | 158,062,423 | 50,904,064 | ||||||||||
|
|
|
| |||||||||
Net increase in net assets | 205,685,403 | 39,957,540 | ||||||||||
Net Assets: | ||||||||||||
Beginning of year | 58,886,172 | 18,928,632 | ||||||||||
|
|
|
| |||||||||
End of year | $ | 264,571,575 | $ | 58,886,172 | ||||||||
|
|
|
| |||||||||
Share Transactions: | ||||||||||||
Issued | 12,864,250 | 4,063,741 | ||||||||||
Reinvested | 211,211 | 112,032 | ||||||||||
Redeemed | (4,255,199 | ) | (730,135 | ) | ||||||||
|
|
|
| |||||||||
Change in shares resulting from capital transactions | 8,820,262 | 3,445,638 | ||||||||||
|
|
|
|
See Notes to the Financial Statements.
48
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets
|
RBC International Opportunities Fund | ||||||||
For the Year Ended March 31, 2021 | For the Year Ended March 31, 2020 | |||||||
From Investment Activities | ||||||||
Operations: | ||||||||
Net investment income | $ | 804,796 | $ | 2,261,504 | ||||
Net realized gains from investments and foreign currency | 6,113,702 | 2,986,409 | ||||||
Net change in unrealized appreciation/(depreciation) on investments and foreign currency | 56,251,195 | (18,175,306 | ) | |||||
|
|
|
| |||||
Change in net assets resulting from operations | 63,169,693 | (12,927,393 | ) | |||||
|
|
|
| |||||
Distributions to Shareholders: | ||||||||
Class A | (620 | ) | — | |||||
Class I | (9,574,285 | ) | (3,638,795 | ) | ||||
Class R6 | (1,025 | ) | (560 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from shareholder distributions | (9,575,930 | ) | (3,639,355 | ) | ||||
|
|
|
| |||||
Capital Transactions: | ||||||||
Proceeds from shares issued | 79,661,795 | 32,071,054 | ||||||
Distributions reinvested | 7,798,538 | 3,015,673 | ||||||
Cost of shares redeemed | (43,806,370 | ) | (11,153,729 | ) | ||||
|
|
|
| |||||
Change in net assets resulting from capital transactions | 43,653,963 | 23,932,998 | ||||||
|
|
|
| |||||
Net increase in net assets | 97,247,726 | 7,366,250 | ||||||
Net Assets: | ||||||||
Beginning of year | 73,580,683 | 66,214,433 | ||||||
|
|
|
| |||||
End of year | $ | 170,828,409 | $ | 73,580,683 | ||||
|
|
|
| |||||
Share Transactions: | ||||||||
Issued | 7,759,846 | 3,163,928 | ||||||
Reinvested | 624,883 | 271,437 | ||||||
Redeemed | (3,960,332 | ) | (1,134,844 | ) | ||||
|
|
|
| |||||
Change in shares resulting from capital transactions | 4,424,397 | 2,300,521 | ||||||
|
|
|
|
See Notes to the Financial Statements.
49
RBC Emerging Markets Equity Fund
(Selected data for a share outstanding throughout the periods indicated) | |||||||||||||||||||||||||||||||||||||||||||||
Investment Activities | Distributions | ||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | Net Investment Income(a) | Net Realized and Unrealized Gains (Losses) on Investments | Redemption Fees | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Year | |||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/21 | $ | 9.50 | —(b) | 5.25 | —(b) | 5.25 | (0.11) | — | (0.11) | $ | 14.64 | ||||||||||||||||||||||||||||||||||
Year Ended 3/31/20 | 11.82 | 0.38(c) | (2.33) | — | (1.95) | (0.36) | (0.01) | (0.37) | 9.50 | ||||||||||||||||||||||||||||||||||||
Year Ended 3/31/19 | 13.05 | 0.21 | (0.56) | — | (0.35) | (0.10) | (0.78) | (0.88) | 11.82 | ||||||||||||||||||||||||||||||||||||
Year Ended 3/31/18 | 10.91 | 0.10 | 2.13 | — | 2.23 | (0.09) | —(b) | (0.09) | 13.05 | ||||||||||||||||||||||||||||||||||||
Year Ended 3/31/17 | 9.81 | 0.11 | 1.10 | — | 1.21 | (0.07) | (0.04) | (0.11) | 10.91 | ||||||||||||||||||||||||||||||||||||
Class I | |||||||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/21 | $ | 9.67 | 0.07 | 5.32 | — | 5.39 | (0.15) | — | (0.15) | $ | 14.91 | ||||||||||||||||||||||||||||||||||
Year Ended 3/31/20 | 12.01 | 0.44(c) | (2.39) | — | (1.95) | (0.38) | (0.01) | (0.39) | 9.67 | ||||||||||||||||||||||||||||||||||||
Year Ended 3/31/19 | 13.26 | 0.18 | (0.51) | — | (0.33) | (0.14) | (0.78) | (0.92) | 12.01 | ||||||||||||||||||||||||||||||||||||
Year Ended 3/31/18 | 11.07 | 0.15 | 2.16 | — | 2.31 | (0.12) | —(b) | (0.12) | 13.26 | ||||||||||||||||||||||||||||||||||||
Year Ended 3/31/17 | 9.95 | 0.12 | 1.12 | — | 1.24 | (0.08) | (0.04) | (0.12) | 11.07 | ||||||||||||||||||||||||||||||||||||
Class R6 | |||||||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/21 | $ | 9.72 | 0.07 | 5.34 | — | 5.41 | (0.15) | — | (0.15) | $ | 14.98 | ||||||||||||||||||||||||||||||||||
Year Ended 3/31/20 | 12.07 | 0.38(c) | (2.34) | — | (1.96) | (0.38) | (0.01) | (0.39) | 9.72 | ||||||||||||||||||||||||||||||||||||
Year Ended 3/31/19 | 13.31 | 0.18 | (0.50) | — | (0.32) | (0.14) | (0.78) | (0.92) | 12.07 | ||||||||||||||||||||||||||||||||||||
Year Ended 3/31/18 | 11.13 | 0.15 | 2.15 | — | 2.30 | (0.12) | —(b) | (0.12) | 13.31 | ||||||||||||||||||||||||||||||||||||
Period Ended 3/31/17(d) | 10.08 | 0.04 | 1.08 | — | 1.12 | (0.03) | (0.04) | (0.07) | 11.13 |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(b) | Less than $0.01 or $(0.01) per share. |
(c) | Net investment income per share and the ratio of net investment income to average net assets include $0.27 and 2.30%, for Class A and $0.27 and 2.30% for Class I and $0.28 and 2.30% for the Class R6, respectively, resulting from the special dividend from Naspers LTD/Prosus in September 2019. |
(d) | For the period from November 22, 2016 (commencement of operations) to March 31, 2017. |
50
FINANCIAL HIGHLIGHTS
RBC Emerging Markets Equity Fund
(Selected data for a share outstanding throughout the periods indicated) | ||||||||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||
Ratio of | ||||||||||||||||||||||||||||||
Ratio of | Net Investment | Ratio of | ||||||||||||||||||||||||||||
Net Assets, | Net Expenses | Income (Loss) | Expenses to | Portfolio | ||||||||||||||||||||||||||
Total | End of | to Average | to Average | Average Net | Turnover | |||||||||||||||||||||||||
Return(a)(b) | Year (000’s) | Net Assets | Net Assets | Assets* | Rate** | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||
Year Ended 3/31/21 | 55.33 | % | $ | 287,862 | 1.13 | % | 0.00 | % | 1.45 | % | 15 | % | ||||||||||||||||||
Year Ended 3/31/20 | (17.22 | )% | 19,435 | 1.13 | % | 3.19 | %(c) | 1.36 | % | 20 | % | |||||||||||||||||||
Year Ended 3/31/19 | (1.90 | )% | 14,815 | 1.13 | % | 1.74 | % | 1.47 | % | 19 | % | |||||||||||||||||||
Year Ended 3/31/18 | 20.42 | %(d) | 48,235 | 1.03 | %(e) | 0.76 | % | 1.55 | % | 42 | % | |||||||||||||||||||
Year Ended 3/31/17 | 12.42 | % | 5,115 | 0.98 | % | 1.09 | % | 1.80 | % | 19 | % | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||
Year Ended 3/31/21 | 55.77 | % | $ | 2,069,695 | 0.88 | % | 0.57 | % | 0.99 | % | 15 | % | ||||||||||||||||||
Year Ended 3/31/20 | (16.97 | )% | 1,047,077 | 0.88 | % | 3.65 | %(c) | 1.02 | % | 20 | % | |||||||||||||||||||
Year Ended 3/31/19 | (1.71 | )% | 766,141 | 0.88 | % | 1.46 | % | 1.08 | % | 19 | % | |||||||||||||||||||
Year Ended 3/31/18 | 20.81 | %(d) | 556,822 | 0.78 | %(e) | 1.20 | % | 1.18 | % | 42 | % | |||||||||||||||||||
Year Ended 3/31/17 | 12.56 | % | 223,971 | 0.73 | % | 1.18 | % | 1.30 | % | 19 | % | |||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||
Year Ended 3/31/21 | 55.70 | % | $ | 305,553 | 0.88 | % | 0.58 | % | 0.88 | % | 15 | % | ||||||||||||||||||
Year Ended 3/31/20 | (16.97 | )% | 146,156 | 0.88 | % | 3.20 | %(c) | 0.91 | % | 20 | % | |||||||||||||||||||
Year Ended 3/31/19 | (1.62 | )% | 99,198 | 0.88 | % | 1.47 | % | 0.98 | % | 19 | % | |||||||||||||||||||
Year Ended 3/31/18 | 20.63 | %(d) | 44,584 | 0.77 | %(e) | 1.16 | % | 1.09 | % | 42 | % | |||||||||||||||||||
Period Ended 3/31/17(f) | 11.20 | %(g) | 23,224 | 0.73 | %(h) | 0.95 | %(h) | 1.28 | %(h) | 19 | % |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Excludes sales charge. |
(b) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
(c) | Net investment income per share and the ratio of net investment income to average net assets include $0.27 and 2.30%, for Class A and $0.27 and 2.30% for Class I and $0.28 and 2.30% for the Class R6, respectively, resulting from the special dividend from Naspers LTD/Prosus in September 2019. |
51
FINANCIAL HIGHLIGHTS
|
RBC Emerging Markets Equity Fund
(Selected data for a share outstanding throughout the periods indicated)
(d) | Includes a payment made by the sub-advisor. The impact of the payment to total returns for each class is 0.17%. |
(e) | Beginning January 2, 2018, the net operating expenses were contractually limited to 1.13%, 0.88% and 0.88% of average daily net assets for Class A, Class I and Class R6, respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended March 31, 2018. |
(f) | For the period from November 22, 2016 (commencement of operations) to March 31, 2017. |
(g) | Not annualized. |
(h) | Annualized. |
See Notes to the Financial Statements.
52
FINANCIAL HIGHLIGHTS
RBC Emerging Markets Small Cap Equity Fund
(Selected data for a share outstanding throughout the periods indicated) | ||||||||||||||||||||||||||||||||
Investment Activities | Distributions | |||||||||||||||||||||||||||||||
Net Asset | Net Realized | |||||||||||||||||||||||||||||||
Value, | Net | and Unrealized | Total from | Net | Net | Net Asset | ||||||||||||||||||||||||||
Beginning | Investment | Gains (Losses) | Investment | Investment | Realized | Total | Value, End | |||||||||||||||||||||||||
of Year | Income(a) | on Investments | Activities | Income | Gains | Distributions | of Year | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Year Ended 3/31/21 | $ 6.60 | 0.05 | 3.96 | 4.01 | — | — | — | $10.61 | ||||||||||||||||||||||||
Year Ended 3/31/20 | 10.33 | 0.13 | (3.36 | ) | (3.23 | ) | (0.31 | ) | (0.19 | ) | (0.50 | ) | 6.60 | |||||||||||||||||||
Year Ended 3/31/19 | 11.48 | 0.11 | (1.16 | ) | (1.05 | ) | — | (0.10 | ) | (0.10 | ) | 10.33 | ||||||||||||||||||||
Year Ended 3/31/18 | 10.15 | 0.06 | 1.54 | 1.60 | (0.26 | ) | (0.01 | ) | (0.27 | ) | 11.48 | |||||||||||||||||||||
Year Ended 3/31/17 | 9.35 | 0.06 | 1.14 | 1.20 | (0.40 | ) | — | (0.40 | ) | 10.15 | ||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
Year Ended 3/31/21 | $ 6.65 | 0.08 | 3.98 | 4.06 | (0.02 | ) | — | (0.02 | ) | $10.69 | ||||||||||||||||||||||
Year Ended 3/31/20 | 10.34 | 0.14 | (3.37 | ) | (3.23 | ) | (0.27 | ) | (0.19 | ) | (0.46 | ) | 6.65 | |||||||||||||||||||
Year Ended 3/31/19 | 11.49 | 0.13 | (1.16 | ) | (1.03 | ) | (0.02 | ) | (0.10 | ) | (0.12 | ) | 10.34 | |||||||||||||||||||
Year Ended 3/31/18 | 10.15 | 0.09 | 1.55 | 1.64 | (0.29 | ) | (0.01 | ) | (0.30 | ) | 11.49 | |||||||||||||||||||||
Year Ended 3/31/17 | 9.35 | 0.08 | 1.15 | 1.23 | (0.43 | ) | — | (0.43 | ) | 10.15 |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
53
FINANCIAL HIGHLIGHTS
|
RBC Emerging Markets Small Cap Equity Fund
(Selected data for a share outstanding throughout the periods indicated) | ||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Ratio of | ||||||||||||||||||||||||
Ratio of | Net Investment | Ratio of | ||||||||||||||||||||||
Net Assets, | Net Expenses | Income (Loss) | Expenses to | Portfolio | ||||||||||||||||||||
Total | End of | to Average | to Average | Average Net | Turnover | |||||||||||||||||||
Return(a)(b) | Year (000’s) | Net Assets | Net Assets | Assets* | Rate** | |||||||||||||||||||
Class A | ||||||||||||||||||||||||
Year Ended 3/31/21 | 60.76% | $3,002 | 1.53%(c) | 0.61% | 4.30% | 29% | ||||||||||||||||||
Year Ended 3/31/20 | (32.71)% | 1,876 | 1.70% | 1.33% | 4.32% | 24% | ||||||||||||||||||
Year Ended 3/31/19 | (9.47)% | 2,865 | 1.70% | 1.08% | 5.64% | 33% | ||||||||||||||||||
Year Ended 3/31/18 | 16.53% | 3,070 | 1.77%(d) | 0.55% | 4.66% | 26% | ||||||||||||||||||
Year Ended 3/31/17 | 13.24% | 2,625 | 1.85% | 0.57% | 5.02% | 38% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
Year Ended 3/31/21 | 61.04% | $7,311 | 1.28%(c) | 0.86% | 3.99% | 29% | ||||||||||||||||||
Year Ended 3/31/20 | (32.54)% | 4,653 | 1.45% | 1.52% | 4.06% | 24% | ||||||||||||||||||
Year Ended 3/31/19 | (9.28)% | 6,383 | 1.45% | 1.27% | 5.28% | 33% | ||||||||||||||||||
Year Ended 3/31/18 | 16.89% | 3,766 | 1.52%(d) | 0.81% | 4.43% | 26% | ||||||||||||||||||
Year Ended 3/31/17 | 13.53% | 2,907 | 1.60% | 0.84% | 4.76% | 38% |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Excludes sales charge. |
(b) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
(c) | Beginning June 18, 2020, the net operating expenses were contractually limited to 1.49% and 1.24% of average daily net assets for Class A and Class I, respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended March 31, 2021. |
(d) | Beginning October 2, 2017, the net operating expenses were contractually limited to 1.70% and 1.45% of average daily net assets for Class A and Class I, respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended March 31, 2018. |
See Notes to the Financial Statements.
54
FINANCIAL HIGHLIGHTS
RBC Emerging Markets Value Equity Fund
(Selected data for a share outstanding throughout the periods indicated) | ||||||||||||||||||||||||||||||||
Investment Activities | Distributions | |||||||||||||||||||||||||||||||
Net Asset | Net Realized | |||||||||||||||||||||||||||||||
Value, | Net | and Unrealized | Total from | Net | Net | Net Asset | ||||||||||||||||||||||||||
Beginning | Investment | Gains (Losses) | Investment | Investment | Realized | Total | Value, End | |||||||||||||||||||||||||
of Year | Income(a) | on Investments | Activities | Income | Gains | Distributions | of Year | |||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
Year Ended 3/31/21 | $ 6.42 | 0.08 | 4.76 | 4.84 | (0.03 | ) | (0.01 | ) | (0.04 | ) | $11.22 | |||||||||||||||||||||
Year Ended 3/31/20 | 8.74 | 0.33(b | ) | (2.31 | ) | (1.98 | ) | (0.34 | ) | — | (0.34 | ) | 6.42 | |||||||||||||||||||
Year Ended 3/31/19 | 10.17 | 0.21 | (1.44 | ) | (1.23 | ) | (0.18 | ) | (0.02 | ) | (0.20 | ) | 8.74 | |||||||||||||||||||
Period Ended 3/31/18(c) | 10.00 | 0.02 | 0.15 | 0.17 | — | — | — | 10.17 | ||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||
Year Ended 3/31/21 | $ 6.42 | 0.12 | 4.68 | 4.80 | (0.31 | ) | (0.01 | ) | (0.32 | ) | $10.90 | |||||||||||||||||||||
Year Ended 3/31/20 | 8.74 | 0.34(b) | (2.31 | ) | (1.97 | ) | (0.35 | ) | — | (0.35 | ) | 6.42 | ||||||||||||||||||||
Year Ended 3/31/19 | 10.17 | 0.21 | (1.43 | ) | (1.22) | (0.19 | ) | (0.02 | ) | (0.21 | ) | 8.74 | ||||||||||||||||||||
Period Ended 3/31/18(c) | 10.00 | 0.02 | 0.15 | 0.17 | — | — | — | 10.17 |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(b) | Net investment income per share and the ratio of net investment income to average net assets include $0.14 and 1.63% for Class I and $0.14 and 1.63% for Class R6, respectively, resulting form the special dividend from Naspers LTD/Prosus in September 2019. |
(c) | For the period from February 9, 2018 (commencement of operations) to March 31, 2018. |
55
FINANCIAL HIGHLIGHTS
|
RBC Emerging Markets Value Equity Fund
(Selected data for a share outstanding throughout the periods indicated) | ||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Ratio of | ||||||||||||||||||||||||
Ratio of | Net Investment | Ratio of | ||||||||||||||||||||||
Net Assets, | Net Expenses | Income (Loss) | Expenses to | Portfolio | ||||||||||||||||||||
Total | End of | to Average | to Average | Average Net | Turnover | |||||||||||||||||||
Return(a) | Year (000’s) | Net Assets | Net Assets | Assets* | Rate** | |||||||||||||||||||
Class I | ||||||||||||||||||||||||
Year Ended 3/31/21 | 75.61% | $40,956 | 0.95% | 0.79% | 1.97% | 68% | ||||||||||||||||||
Year Ended 3/31/20 | (23.71)% | 1,762 | 0.95% | 3.91% | (b) | 6.68% | 71% | |||||||||||||||||
Year Ended 3/31/19 | (12.04)% | 2,245 | 0.77% | (c) | 2.35% | 7.02% | 75% | |||||||||||||||||
Period Ended 3/31/18(d) | 1.90%(e) | 2,543 | 1.11% | (f) | 1.75% | (f) | 9.98% | (f) | 27% | |||||||||||||||
Class R6 | ||||||||||||||||||||||||
Year Ended 3/31/21 | 75.44% | $ 3,006 | 0.88% | 1.36% | 3.37% | 68% | ||||||||||||||||||
Year Ended 3/31/20 | (23.58)% | 1,712 | 0.88% | 3.99% | (b) | 6.67% | 71% | |||||||||||||||||
Year Ended 3/31/19 | (11.98)% | 2,242 | 0.71% | (c) | 2.41% | 6.96% | 75% | |||||||||||||||||
Period Ended 3/31/18(d) | 1.90%(e) | 2,543 | 1.06% | (f) | 1.80% | (f) | 9.60% | (f) | 27% |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
(b) | Net investment income per share and the ratio of net investment income to average net assets include $0.14 and 1.63% for Class I and $0.14 and 1.63% for Class R6, respectively, resulting form the special dividend from Naspers LTD/Prosus in September 2019. |
(c) | Beginning July 2, 2018, the net operating expenses were contractually limited to 0.95% and 0.88% of average daily net assets for Class I and Class R6, respectively. The ratio of net expenses to average net assets represents a blended percentage for the year ended March 31, 2019. |
(d) | For the period from February 9, 2018 (commencement of operations) to March 31, 2018. |
(e) | Not annualized. |
(f) | Annualized. |
See Notes to the Financial Statements.
56
FINANCIAL HIGHLIGHTS
RBC Global Opportunities Fund
(Selected data for a share outstanding throughout the periods indicated) | ||||||||||||||||||||||||||||||||||||
Investment Activities | Distributions | |||||||||||||||||||||||||||||||||||
Net Asset | Net | Net Realized | ||||||||||||||||||||||||||||||||||
Value, | Investment | and Unrealized | Total from | Net | Net | Net Asset | ||||||||||||||||||||||||||||||
Beginning | Income/ | Gains (Losses) | Redemption | Investment | Investment | Realized | Total | Value, End | ||||||||||||||||||||||||||||
of Year | (Loss)(a) | on Investments | Fees | Activities | Income | Gains | Distributions | of Year | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
Year Ended 3/31/21 | $12.28 | (0.01) | 7.51 | —(b) | 7.50 | — | (0.39) | (0.39) | $19.39 | |||||||||||||||||||||||||||
Period Ended 3/31/20(c) | 15.50 | 0.02 | (3.24) | — | (3.22) | — | — | — | 12.28 | |||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||
Year Ended 3/31/21 | $12.28 | 0.04 | 7.53 | — | 7.57 | (0.05) | (0.39) | (0.44) | $19.41 | |||||||||||||||||||||||||||
Year Ended 3/31/20 | 14.04 | 0.20(d | ) | (1.53) | — | (1.33) | (0.16) | (0.27) | (0.43) | 12.28 | ||||||||||||||||||||||||||
Year Ended 3/31/19 | 13.69 | 0.09 | 0.72 | — | 0.81 | (0.02) | (0.44) | (0.46) | 14.04 | |||||||||||||||||||||||||||
Year Ended 3/31/18 | 11.31 | 0.07 | 2.82 | — | 2.89 | (0.08) | (0.43) | (0.51) | 13.69 | |||||||||||||||||||||||||||
Year Ended 3/31/17 | 10.12 | 0.07 | 1.20 | — | 1.27 | (0.08) | — | (0.08) | 11.31 | |||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||
Year Ended 3/31/21 | $12.30 | 0.06 | 7.52 | — | 7.58 | (0.02) | (0.39) | (0.41) | $19.47 | |||||||||||||||||||||||||||
Year Ended 3/31/20 | 14.08 | 0.16(d) | (1.48) | — | (1.32) | (0.19) | (0.27) | (0.46) | 12.30 | |||||||||||||||||||||||||||
Year Ended 3/31/19 | 13.77 | 0.13 | 0.68 | — | 0.81 | (0.06) | (0.44) | (0.50) | 14.08 | |||||||||||||||||||||||||||
Year Ended 3/31/18 | 11.39 | 0.07 | 2.85 | — | 2.92 | (0.11) | (0.43) | (0.54) | 13.77 | |||||||||||||||||||||||||||
Period Ended 3/31/17(e) | 10.42 | —(b) | 0.97 | — | 0.97 | — | — | — | 11.39 |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(b) | Less than $0.01 or $(0.01) per share. |
(c) | For the period from January 28, 2020 (commencement of operations) to March 31. 2020. |
(d) | Net investment income per share and the ratio of net investment income to average net assets include $0.13 and 0.87% for Class I and $0.12 and 0.87% for Class R6, respectively, resulting from the special dividend from Naspers LTD/Prosus in September 2019. |
(e) | For the period from November 22, 2016 (commencement of operations) to March 31, 2017. |
57
FINANCIAL HIGHLIGHTS
|
RBC Global Opportunities Fund
(Selected data for a share outstanding throughout the periods indicated) | ||||||||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||
Ratio of | ||||||||||||||||||||||||||||||
Ratio of | Net Investment | Ratio of | ||||||||||||||||||||||||||||
Net Assets, | Net Expenses | Income (Loss) | Expenses to | Portfolio | ||||||||||||||||||||||||||
Total | End of | to Average | to Average | Average Net | Turnover | |||||||||||||||||||||||||
Return(a) | Year (000’s) | Net Assets | Net Assets | Assets* | Rate** | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||
Year Ended 3/31/21 | 61.21 | % | $ | 13 | 1.02 | %(b) | (0.07 | )% | 33.96 | % | 62 | % | ||||||||||||||||||
Period Ended 3/31/20(c) | (20.77 | )%(d) | 8 | 1.11 | %(e) | 0.82 | %(e) | 1.64 | %(e) | 23 | % | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||
Year Ended 3/31/21 | 61.74 | % | $ | 144,339 | 0.77 | %(b) | 0.25 | % | 0.99 | % | 62 | % | ||||||||||||||||||
Year Ended 3/31/20 | (10.10 | )% | 58,090 | 0.86 | % | 1.35 | %(f) | 1.25 | % | 23 | % | |||||||||||||||||||
Year Ended 3/31/19 | 6.49 | % | 18,873 | 0.86 | % | 0.64 | % | 1.94 | % | 28 | % | |||||||||||||||||||
Year Ended 3/31/18 | 25.71 | % | 11,236 | 0.94 | %(g) | 0.50 | % | 2.52 | % | 30 | % | |||||||||||||||||||
Year Ended 3/31/17 | 12.58 | % | 7,102 | 1.05 | % | 0.65 | % | 3.26 | % | 36 | % | |||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||
Year Ended 3/31/21 | 61.76 | % | $ | 120,220 | 0.71 | %(b) | 0.31 | % | 0.90 | % | 62 | % | ||||||||||||||||||
Year Ended 3/31/20 | (10.01 | )% | 788 | 0.81 | % | 1.19 | %(f) | 5.44 | % | 23 | % | |||||||||||||||||||
Year Ended 3/31/19 | 6.54 | % | 55 | 0.81 | % | 0.95 | % | 18.77 | % | 28 | % | |||||||||||||||||||
Year Ended 3/31/18 | 25.80 | % | 14 | 0.90 | %(g) | 0.56 | % | 30.59 | % | 30 | % | |||||||||||||||||||
Period Ended 3/31/17(h) | 9.31 | %(d) | 11 | 1.00 | %(e) | 0.10 | %(e) | 77.25 | %(e) | 36 | % |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
(b) | Beginning June 18, 2020, the net operating expenses were contractually limited to 1.00%, 0.75% and 0.70% of average daily net assets for Class A and Class I and Class R6, respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended March 31, 2021. |
(c) | For the period from January 28, 2020 (commencement of operations) to March 31. 2020. |
(d) | Not annualized. |
(e) | Annualized. |
58
FINANCIAL HIGHLIGHTS
RBC Global Opportunities Fund |
(Selected data for a share outstanding throughout the periods indicated)
(f) | Net investment income per share and the ratio of net investment income to average net assets include $0.13 and 0.87% for Class I and $0.12 and 0.87% for Class R6, respectively, resulting from the special dividend from Naspers LTD/Prosus in September 2019. |
(g) | Beginning October 2, 2017, the net operating expenses were contractually limited to 0.86% and 0.81% of average daily net assets for Class I and Class R6, respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended March 31, 2018. |
(h) | For the period from November 22, 2016 (commencement of operations) to March 31, 2017. |
See Notes to the Financial Statements.
59
FINANCIAL HIGHLIGHTS
|
RBC International Opportunities Fund
(Selected data for a share outstanding throughout the periods indicated) | ||||||||||||||||||||||||||||||||
Investment Activities | Distributions | |||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | Net Investment Income(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Total Distributions | Net Asset Value, End of Year | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Year Ended 3/31/21 | $ 8.41 | 0.02 | 5.17 | 5.19 | — | (0.68 | ) | (0.68 | ) | $12.92 | ||||||||||||||||||||||
Period Ended 3/31/20(b) | 11.03 | 0.02 | (2.64 | ) | (2.62 | ) | — | — | — | 8.41 | ||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
Year Ended 3/31/21 | $ 8.41 | 0.07 | 5.29 | 5.36 | (0.12 | ) | (0.68 | ) | (0.80 | ) | $12.97 | |||||||||||||||||||||
Year Ended 3/31/20 | 10.27 | 0.29(c) | (1.70 | ) | (1.41 | ) | (0.31 | ) | (0.14 | ) | (0.45 | ) | 8.41 | |||||||||||||||||||
Year Ended 3/31/19 | 11.39 | 0.18 | (0.56 | ) | (0.38 | ) | (0.10 | ) | (0.64 | ) | (0.74 | ) | 10.27 | |||||||||||||||||||
Year Ended 3/31/18 | 9.69 | 0.11 | 1.88 | 1.99 | (0.12 | ) | (0.17 | ) | (0.29 | ) | 11.39 | |||||||||||||||||||||
Year Ended 3/31/17 | 9.47 | 0.09 | 0.18 | 0.27 | (0.05 | ) | — | (0.05 | ) | 9.69 | ||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||
Year Ended 3/31/21 | $ 8.46 | 0.08 | 5.32 | 5.40 | (0.13 | ) | (0.68 | ) | (0.81 | ) | $13.05 | |||||||||||||||||||||
Year Ended 3/31/20 | 10.33 | 0.29(c | ) | (1.70 | ) | (1.41 | ) | (0.32 | ) | (0.14 | ) | (0.46 | ) | 8.46 | ||||||||||||||||||
Year Ended 3/31/19 | 11.44 | 0.18 | (0.55 | ) | (0.37 | ) | (0.10 | ) | (0.64 | ) | (0.74 | ) | 10.33 | |||||||||||||||||||
Year Ended 3/31/18 | 9.74 | 0.13 | 1.88 | 2.01 | (0.14 | ) | (0.17 | ) | (0.31 | ) | 11.44 | |||||||||||||||||||||
Period Ended 3/31/17(d) | 9.11 | 0.02 | 0.61 | 0.63 | —(e | ) | — | —(e | ) | 9.74 |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(b) | For the period from January 28, 2020 (commencement of operations) to March 31. 2020. |
(c) | Net investment income per share and the ratio of net investment income to average net assets include $0.17 and 1.58% for Class I and $0.17 and 1.58% for Class R6, respectively, resulting from the special dividend from Naspers LTD/Prosus in September 2019. |
(d) | For the period from November 22, 2016 (commencement of operations) to March 31, 2017. |
(e) | Less than $0.01 or $(0.01) per share. |
60
FINANCIAL HIGHLIGHTS
RBC International Opportunities Fund
(Selected data for a share outstanding throughout the periods indicated) | ||||||||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||
Total Return(a) | Net Assets, End of Year (000’s) | Ratio of Net Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Ratio of Expenses to Average Net Assets* | Portfolio Turnover Rate** | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||
Year Ended 3/31/21 | 62.00 | % | $ 22 | 1.10 | %(b) | 0.15 | % | 3.67 | % | 37 | % | |||||||||||||||||||
Period Ended 3/31/20(c) | (23.75 | )%(d) | 8 | 1.14 | %(e) | 1.42 | %(e) | 1.38 | %(e) | 45 | % | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||
Year Ended 3/31/21 | 63.90 | % | $170,788 | 0.81 | %(b) | 0.59 | % | 1.11 | % | 37 | % | |||||||||||||||||||
Year Ended 3/31/20 | (14.68 | )% | 73,562 | 0.89 | % | 2.76 | %(f) | 1.21 | % | 45 | % | |||||||||||||||||||
Year Ended 3/31/19 | (2.46 | )% | 66,202 | 0.89 | %(g) | 1.71 | % | 1.26 | %(g) | 49 | % | |||||||||||||||||||
Year Ended 3/31/18 | 20.82 | % | 65,372 | 0.94 | %(h) | 1.03 | % | 1.32 | % | 45 | % | |||||||||||||||||||
Year Ended 3/31/17 | 2.85 | % | 25,145 | 1.00 | % | 0.99 | % | 1.84 | % | 38 | % | |||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||
Year Ended 3/31/21 | 64.15 | % | $ 18 | 0.76 | %(b) | 0.67 | % | 24.83 | % | 37 | % | |||||||||||||||||||
Year Ended 3/31/20 | (14.74 | )% | 11 | 0.84 | % | 2.74 | %(f) | 28.05 | % | 45 | % | |||||||||||||||||||
Year Ended 3/31/19 | (2.27 | )% | 13 | 0.84 | %(g) | 1.69 | % | 29.90 | %(g) | 49 | % | |||||||||||||||||||
Year Ended 3/31/18 | 20.75 | % | 13 | 0.89 | %(h) | 1.14 | % | 30.23 | % | 45 | % | |||||||||||||||||||
Period Ended 3/31/17(i) | 6.96 | %(d) | 11 | 0.95 | %(e) | 0.46 | %(e) | 77.08 | %(e) | 38 | % |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
(b) | Beginning June 18, 2020, the net operating expenses were contractually limited to 1.05%, 0.80% and 0.75% of average daily net assets for Class A and Class I and Class R6, respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended March 31, 2021. |
(c) | For the period from January 28, 2020 (commencement of operations) to March 31. 2020. |
(d) | Not annualized. |
(e) | Annualized. |
61
FINANCIAL HIGHLIGHTS
|
RBC International Opportunities Fund |
(Selected data for a share outstanding throughout the periods indicated)
(f) | Net investment income per share and the ratio of net investment income to average net assets include $0.17 and 1.58% for Class I and $0.17 and 1.58% for Class R6, respectively, resulting from the special dividend from Naspers LTD/Prosus in September 2019. |
(g) | Ratios include line of credit interest expense which is less than 0.01%. |
(h) | Beginning October 2, 2017, the net operating expenses were contractually limited to 0.89% and 0.84% of average daily net assets for Class I and Class R6, respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended March 31, 2018. |
(i) | For the period from November 22, 2016 (commencement of operations) to March 31, 2017. |
See Notes to the Financial Statements.
62
NOTES TO FINANCIAL STATEMENTS |
March 31, 2021
1. Organization:
RBC Funds Trust (the “Trust”) is registered under the Investment Company Act of 1940 (as amended) as an open-end management investment company. The Trust was organized as a Delaware statutory trust on December 16, 2003 and currently consists of 18 portfolios. Overall responsibility for the management of the Trust is vested in its Board of Trustees (the “Board”). This report includes the following five investment portfolios (each a “Fund” and collectively, the “Funds”):
- RBC Emerging Markets Equity Fund (“Emerging Markets Equity Fund”)
- RBC Emerging Markets Small Cap Equity Fund (“Emerging Markets Small Cap Equity Fund”)
- RBC Emerging Markets Value Equity Fund (“Emerging Markets Value Equity Fund”)
- RBC Global Opportunities Fund (“Global Opportunities Fund”)
- RBC International Opportunities Fund (“International Opportunities Fund”)
Emerging Markets Equity Fund, Global Opportunities Fund and International Opportunities Fund each offer three share classes: Class A, Class R6 and Class I shares. Emerging Markets Small Cap Equity Fund offers two share classes: Class A and Class I shares. Emerging Markets Value Equity Fund offers two share classes: Class I and Class R6 shares. Class A shares are offered with a 5.75% maximum front-end sales charge and a 1.00% contingent deferred sales charge (“CDSC”) for redemption within 12 months of a $1 million or greater purchase on which no front-end sales charge was paid. Class I and Class R6 shares (intended for investors meeting certain investment minimum thresholds) are not subject to either a front-end sales charge or a CDSC.
RBC Global Asset Management (U.S.) Inc. (“RBC GAM-US” or “Advisor” or “Co-Administrator”) acts as the investment advisor for the Funds and RBC Global Asset Management (UK) Limited (“RBC GAM-UK” or “Sub-Advisor”) serves as the investment sub-advisor. The officers of the Trust (“Fund Management”) are also employees of RBC GAM-US.
2. Significant Accounting Policies
Each Fund is an investment company that follows accounting and reporting guidance under the Financial Accounting Standards Board. Summarized below are the significant accounting policies of the Funds. These policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). Fund Management follows these policies when preparing financial statements. Fund Management may also be required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The financial statements are as of the close of regular trading on the New York Stock Exchange (“NYSE”).
Security Valuation:
The Board has adopted pricing and valuation procedures for determining the fair value of each Fund’s investments. Fair value of a security is considered to be the price that a fund might reasonably expect to receive upon its current sale in an orderly transaction between market participants.
Equity securities are generally valued on the basis of prices furnished by third-party pricing services approved by the Board. Equity securities listed on one or more exchanges shall be valued at the last available quoted sale price on the primary trading exchange as of the regularly scheduled closing time of the exchange and are categorized as Level 1 in the fair value hierarchy. (See “Fair Value Measurements” below for additional information). An equity security not listed on an exchange but listed on NASDAQ shall be valued at the NASDAQ official closing price and is also categorized as Level 1. If there was no sale on the primary exchange on the day the net asset value is calculated or a NASDAQ official closing price is not available, the most recent bid quotation generally will be used and such securities will generally be categorized as Level 2. Investments in open-end investment companies (mutual funds) are valued at net asset value and are categorized as Level 1 in the fair value hierarchy.
Fixed income securities, including to-be-announced (“TBA”) commitments and municipal bonds, are generally valued based on evaluated prices received from third-party pricing services or from
63
NOTES TO FINANCIAL STATEMENTS |
broker-dealers who make markets in the securities and are generally categorized as Level 2 in the fair value hierarchy (see “Fair Value Measurements” below for additional information). The pricing services utilize both dealer-supplied valuations and electronic data processing techniques that take into account multiple appropriate factors such as institutional-size trading in similar groups of securities, market spreads, interest rates, and fundamental security analytical data including yield, quality, coupon rate, maturity and type of issue.
Foreign securities valued in non-U.S. dollars are valued in the foreign currency and then converted into the U.S. dollar equivalent using the foreign exchange rate in effect at the close of NYSE on the day the security’s value is determined. The value of securities traded in markets outside the United States may be affected on a day that the NYSE is closed and an investor is not able to purchase, exchange or redeem shares of the Funds.
Many securities markets and exchanges outside of North American and South American time zones close prior to the close of the NYSE; therefore, the closing prices for equity securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the NYSE. The Funds have procedures in place to fair value foreign equity securities traded in countries outside North American and South American time zones daily in order to take into account, among other things, any significant events occurring after the close of trading in a foreign market. The Funds receive adjusted fair value prices from a designated independent pricing vendor. In general, the vendor utilizes a multi-factor model to consider such information as the issue’s closing price, relevant general and sector indices and currency fluctuations to generate an evaluated adjustment factor for each security and provide an evaluated fair value price. The Funds generally categorize such evaluated fair value prices as Level 2 in the fair value hierarchy.
The Board has delegated to the Funds’ Pricing Committee (“Pricing Committee”) the responsibility for implementing the pricing and valuation procedures, including responsibility for determining the fair value of the Funds’ securities or other assets and liabilities. The Pricing Committee includes representatives of the Funds’ Advisor, and Co-Administrator, including personnel from accounting and operations, investment management, trading, risk management and compliance. The Pricing Committee meets at least quarterly to review and approve Fund valuation matters, including a review of the Funds’ pricing activity and operations, fair value measurements, pricing vendors, policies and procedures, and related controls. At least a quorum of the Pricing Committee shall meet more frequently, as needed, to consider and approve time-sensitive fair valuation matters. The Pricing Committee reports to the Valuation, Portfolio Management and Performance Committee (“Valuation Committee”) of the Board. Members of the Pricing Committee meet with the Valuation Committee and the Board at each of their regularly scheduled meetings to discuss valuation matters and actions taken during the period.
The Board has adopted procedures to determine the fair value of a security when a price is not available from a pricing service or broker- dealer or Fund Management determines that a price provided by a pricing service or broker-dealer does not approximate fair value. Fair valuation may also be used when a significant valuation event affecting the value of a security or market sector is determined to have occurred between the time when a security’s market closes and the time the Fund’s net asset value is calculated. The fair value of the security will be determined in good faith by the Pricing Committee in accordance with procedures and methodologies adopted by the Board. General factors used in determining the fair value of securities include, but are not limited to, fundamental analytical data relating to the security, the issuer and the market, such as duration, prepayment and default rates; general level of interest rates and changes in interest rates; information from broker-dealers; trading in similar securities; any restrictions on disposition of the security; and an evaluation of the forces that influence the market in which the investments are traded. These securities are either categorized as Level 2 or 3 in the fair value hierarchy, depending on the relevant inputs used.
When the Funds utilize fair valuation methods that use significant unobservable inputs to determine a security’s value, such securities will be categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. While the Funds’ policy is intended to result in a calculation of a Fund’s net asset value that fairly reflects security values as of the time of
64
NOTES TO FINANCIAL STATEMENTS |
pricing, the Funds cannot guarantee that values determined by the Board or persons acting at their direction would accurately reflect the price that the Funds could obtain for a security if they were to dispose of it as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Funds may differ from the value that would be realized if the securities were sold.
The Funds’ Pricing Committee employs various methods for calibrating the valuation approach related to securities categorized within Level 2 and Level 3 of the fair value hierarchy. These methods may include regular due diligence of the Funds’ pricing vendors, a regular review of key inputs and assumptions, transaction back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing and stale prices and large movements in market value, and reviews of any market related activities. Additionally, the pricing of all fair value holdings is subsequently reported to the Valuation Committee and Board.
Fair Value Measurements:
The Funds disclose the fair value of their investments in a hierarchy that categorizes investments based on the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows:
• Level 1 - Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access at the measurement date.
• Level 2 - Significant inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active. Observable inputs may include quoted prices for similar securities, interest rates, spreads, prepayment spreads, etc.
• Level 3 - Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those securities.
Inputs used in determining fair value of an investment may include, but are not limited to, price information, volatility statistics, credit and market data, and other factors, all of which may be either observable or unobservable. Inputs can vary among investments and will be impacted by the investment type and volume of activity for the particular security or similar securities in the market. Investments in the Level 3 category are generally supported by transactions and quoted prices from dealers participating in the market for those investments. Investments may be included in the Level 3 category due to a lack of market activity or transparency. Internal valuation models may also be used as a pricing source for Level 3 investments. Internal valuation models may rely on one or more unobservable inputs, such as estimated cash flows, financial statement analysis and discount rates.
65
NOTES TO FINANCIAL STATEMENTS |
The summary of inputs used to determine the fair value of the Funds’ investments as of March 31, 2021 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Total | |||||||||||||||||
Emerging Markets Equity Fund Assets: | ||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||
Common Stocks | ||||||||||||||||||||
Argentina | $ | 21,493,244 | $ | — | $ | — | $ | 21,493,244 | ||||||||||||
Brazil | 103,748,318 | — | — | 103,748,318 | ||||||||||||||||
Chile | 29,532,244 | 122,103,961 | — | 151,636,205 | ||||||||||||||||
China | 192,045,367 | 388,323,037 | — | 580,368,404 | ||||||||||||||||
Hong Kong | — | 139,841,911 | — | 139,841,911 | ||||||||||||||||
India | 1,337,074 | 389,635,550 | — | 390,972,624 | ||||||||||||||||
Indonesia | — | 64,932,610 | — | 64,932,610 | ||||||||||||||||
Korea | — | 313,339,010 | — | 313,339,010 | ||||||||||||||||
Mexico | 53,424,036 | — | — | 53,424,036 | ||||||||||||||||
Peru | 36,936,722 | — | — | 36,936,722 | ||||||||||||||||
Philippines | — | 54,937,029 | — | 54,937,029 | ||||||||||||||||
South Africa | — | 206,596,436 | — | 206,596,436 | ||||||||||||||||
Taiwan | — | 383,357,875 | — | 383,357,875 | ||||||||||||||||
Thailand | — | 23,316,309 | — | 23,316,309 | ||||||||||||||||
Turkey | — | 29,188,158 | — | 29,188,158 | ||||||||||||||||
United Kingdom | — | 108,899,266 | — | 108,899,266 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total Assets | $ | 438,517,005 | $ | 2,224,471,152 | $ | — | $ | 2,662,988,157 | ||||||||||||
|
|
|
|
|
|
|
|
66
NOTES TO FINANCIAL STATEMENTS |
Level 1 | Level 2 Significant | Level 3 | Total | |||||||||||||||||||||
Emerging Markets Small Cap Equity Fund Assets: | ||||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||||
Common Stocks | ||||||||||||||||||||||||
Bangladesh | $ | — | $ | 129,107 | $ | 85,721 | $ | 214,828 | ||||||||||||||||
Brazil | 508,302 | — |
| — |
| 508,302 | ||||||||||||||||||
Chile | 376,092 | — | — | 376,092 | ||||||||||||||||||||
China | — | 1,227,972 | — | 1,227,972 | ||||||||||||||||||||
Egypt | — | 104,894 | — | 104,894 | ||||||||||||||||||||
Hong Kong | — | 184,759 | — | 184,759 | ||||||||||||||||||||
India | — | 2,210,855 | — | 2,210,855 | ||||||||||||||||||||
Indonesia | — | 117,372 | — | 117,372 | ||||||||||||||||||||
Korea | — | 1,129,139 | — | 1,129,139 | ||||||||||||||||||||
Malaysia | — | 82,825 | — | 82,825 | ||||||||||||||||||||
Mexico | 359,639 | — | — | 359,639 | ||||||||||||||||||||
Pakistan | — | 102,917 | — | 102,917 | ||||||||||||||||||||
Peru | 147,585 | — | — | 147,585 | ||||||||||||||||||||
Philippines | — | 714,819 | — | 714,819 | ||||||||||||||||||||
Russia | — | 152,479 | — | 152,479 | ||||||||||||||||||||
South Africa | — | 460,690 | — | 460,690 | ||||||||||||||||||||
Sri Lanka | — | 100,832 | — | 100,832 | ||||||||||||||||||||
Taiwan | — | 1,719,426 | — | 1,719,426 | ||||||||||||||||||||
United Arab Emirates | — | 190,020 | — | 190,020 | ||||||||||||||||||||
Preferred Stocks | — | 136,873 | 119 | 136,992 | ||||||||||||||||||||
Investment Company | 45,100 | — | — | 45,100 | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total Assets | $ | 1,436,718 | $ | 8,764,979 | $ | 85,840 | $ | 10,287,537 | ||||||||||||||||
|
|
|
|
|
|
|
|
67
NOTES TO FINANCIAL STATEMENTS |
Level 1 Quoted Prices | Level 2 Significant | Level 3 Significant Inputs | Total | |||||||||||||||||||
Emerging Markets Value Equity Fund Assets: | ||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||
Common Stocks | ||||||||||||||||||||||
Brazil | $ | 1,169,901 | $ | — | $— | $ | 1,169,901 | |||||||||||||||
Chile | 645,366 | 1,051,405 | — | 1,696,771 | ||||||||||||||||||
China | 3,571,476 | 8,402,857 | — | 11,974,333 | ||||||||||||||||||
Greece | — | 247,759 | — | 247,759 | ||||||||||||||||||
Hong Kong | — | 1,094,308 | — | 1,094,308 | ||||||||||||||||||
Hungary | — | 719,889 | — | 719,889 | ||||||||||||||||||
India | — | 3,494,652 | — | 3,494,652 | ||||||||||||||||||
Indonesia | — | 329,718 | — | 329,718 | ||||||||||||||||||
Korea | — | 7,352,991 | — | 7,352,991 | ||||||||||||||||||
Mexico | 1,541,415 | — | — | 1,541,415 | ||||||||||||||||||
Pakistan | — | 341,205 | — | 341,205 | ||||||||||||||||||
Peru | 327,768 | — | — | 327,768 | ||||||||||||||||||
Philippines | — | 443,099 | — | 443,099 | ||||||||||||||||||
Russia | 273,819 | 1,760,825 | — | 2,034,644 | ||||||||||||||||||
South Africa | — | 3,405,814 | — | 3,405,814 | ||||||||||||||||||
Taiwan | — | 4,136,235 | — | 4,136,235 | ||||||||||||||||||
Thailand | — | 360,480 | — | 360,480 | ||||||||||||||||||
Turkey | — | 318,429 | — | 318,429 | ||||||||||||||||||
United Arab Emirates | — | 377,882 | — | 377,882 | ||||||||||||||||||
United States | — | 620,762 | — | 620,762 | ||||||||||||||||||
Vietnam | — | 838,638 | — | 838,638 | ||||||||||||||||||
Preferred Stocks | 966,020 | — | — | 966,020 | ||||||||||||||||||
Investment Company | 166,783 | — | — | 166,783 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Total Assets | $ | 8,662,548 | $ | 35,296,948 | $ | — | $ | 43,959,496 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Level 1 Quoted Prices | Level 2 Significant | Level 3 Significant | Total | |||||||||||||||||||
Global Opportunities Fund Assets: | ||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||
Common Stocks | ||||||||||||||||||||||
Argentina | $ | 2,649,852 | $ | — | $ | — | $ | 2,649,852 | ||||||||||||||
Belgium | — | 8,239,370 | — | 8,239,370 | ||||||||||||||||||
Denmark | — | 7,345,867 | — | 7,345,867 | ||||||||||||||||||
Finland | — | 6,077,632 | — | 6,077,632 | ||||||||||||||||||
Germany | — | 9,894,103 | — | 9,894,103 | ||||||||||||||||||
Hong Kong | — | 9,518,910 | — | 9,518,910 | ||||||||||||||||||
Japan | — | 9,202,350 | — | 9,202,350 | ||||||||||||||||||
Netherlands | — | 3,822,397 | — | 3,822,397 | ||||||||||||||||||
South Africa | — | 5,123,128 | — | 5,123,128 | ||||||||||||||||||
Spain | — | 10,163,521 | — | 10,163,521 | ||||||||||||||||||
Switzerland | — | 12,623,427 | — | 12,623,427 | ||||||||||||||||||
Taiwan | 7,534,436 | — | — | 7,534,436 | ||||||||||||||||||
United Kingdom | — | 16,954,052 | — | 16,954,052 | ||||||||||||||||||
United States | 152,836,288 | — | — | 152,836,288 | ||||||||||||||||||
Investment Company | 7,322,625 | — | — | 7,322,625 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||
Total Assets | $ | 170,343,201 | $ | 98,964,757 | $ | — | $ | 269,307,958 | ||||||||||||||
|
|
|
|
|
|
|
|
68
NOTES TO FINANCIAL STATEMENTS |
Level 1 Quoted Prices | Level 2 Significant | Level 3 | Total | |||||||||||||||||||||
International Opportunities Fund Assets: | ||||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||||
Common Stocks | ||||||||||||||||||||||||
Argentina | $ | 2,649,852 | $ | — | $— | $ | 2,649,852 | |||||||||||||||||
Australia | — | 7,619,129 | — | 7,619,129 | ||||||||||||||||||||
Austria | — | 2,602,059 | — | 2,602,059 | ||||||||||||||||||||
Belgium | — | 4,872,876 | — | 4,872,876 | ||||||||||||||||||||
Denmark | — | 6,932,516 | — | 6,932,516 | ||||||||||||||||||||
Finland | — | 5,564,737 | — | 5,564,737 | ||||||||||||||||||||
Germany | — | 7,940,946 | — | 7,940,946 | ||||||||||||||||||||
Hong Kong | — | 7,990,611 | — | 7,990,611 | ||||||||||||||||||||
India | 7,486,675 | — | — | 7,486,675 | ||||||||||||||||||||
Ireland | — | 1,727,473 | — | 1,727,473 | ||||||||||||||||||||
Japan | — | 22,160,759 | — | 22,160,759 | ||||||||||||||||||||
Netherlands | — | 5,631,442 | — | 5,631,442 | ||||||||||||||||||||
Singapore | — | 4,224,640 | — | 4,224,640 | ||||||||||||||||||||
South Africa | — | 10,173,684 | — | 10,173,684 | ||||||||||||||||||||
Spain | — | 7,036,916 | — | 7,036,916 | ||||||||||||||||||||
Sweden | — | 1,667,804 | — | 1,667,804 | ||||||||||||||||||||
Switzerland | — | 17,137,888 | — | 17,137,888 | ||||||||||||||||||||
Taiwan | 9,961,305 | 2,802,921 | — | 12,764,226 | ||||||||||||||||||||
Thailand | — | 5,240,053 | — | 5,240,053 | ||||||||||||||||||||
United Kingdom | — | 22,969,957 | — | 22,969,957 | ||||||||||||||||||||
United States | 1,254,598 | — | — | 1,254,598 | ||||||||||||||||||||
Zambia | 2,724,720 | — | — | 2,724,720 | ||||||||||||||||||||
Investment Company | 2,839,826 | — | — | 2,839,826 | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total Assets | $ | 26,916,976 | $ | 144,296,411 | $ | — | $ | 171,213,387 | ||||||||||||||||
|
|
|
|
|
|
|
|
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
Emerging Markets Small Cap Equity Fund | ||||||||||||
Common Stocks– | Preferred Stocks– | |||||||||||
Balance as of 3/31/20(value) | $ | — | $ | 114 | ||||||||
Sales (Paydowns) | (67,972 | ) | — | |||||||||
Realized gain (loss) | (12,612 | ) | — | |||||||||
Transfer into Level 3 | 166,667 | — | ||||||||||
Change in unrealized appreciation (depreciation) | (362 | ) | 5 | |||||||||
|
|
|
| |||||||||
Balance as of 3/31/21(value) | $ | 85,721 | $ | 119 | ||||||||
|
|
|
|
The Funds’ assets assigned to the Level 3 category were valued using market data or trade information specific to the security or comparable issues. However, due to a lack of market activity or corroborating data to support the valuations, the investments were classified as Level 3.
The significant unobservable inputs used in fair value measurement of the Level 3 preferred stock security shown above include the subscription price paid by the Fund when the preferred shares were received and security-specific characteristics, including whether it may be converted into common shares. The significant unobservable inputs used in the fair value measurement of the common stock
69
NOTES TO FINANCIAL STATEMENTS |
security shown above include the implied discount from the security’s imposed price floor at which it is assumed the Fund will be able to dispose of the security. Significant changes in any of those inputs in isolation would result in a significantly lower or higher fair value measurement.
Repurchase Agreements:
The Funds, may enter into repurchase agreements with counterparties whom the Advisor has deemed creditworthy, including primary dealers that report to the Federal Reserve Bank of New York or other large U.S. commercial banks or broker-dealers. These repurchase agreements are subject to the seller’s agreement to repurchase such securities at a mutually agreed upon date and price. The repurchase price generally equals the price paid by the Funds plus interest negotiated on the basis of current short-term rates.
Securities pledged by the dealers as collateral for repurchase agreements are held by a custodian bank until maturity of the repurchase agreement. The Funds have procedures to monitor additional collateral, if needed, to ensure that the daily market value of the collateral remains in excess of the market value of the repurchase agreement in the event of a default.
There were no repurchase agreements held during the year ended March 31, 2021.
Affiliated Investments:
The Funds invest in another Fund of the Trust (an “Affiliated Fund”), U.S. Government Money Market Fund-RBC Institutional Class 1, as a cash sweep vehicle. The income earned by the Funds from the Affiliated Fund for the period is disclosed in the Statement of Operations. The table below details the transactions of the Funds in the Affiliated Fund.
Value March 31, 2020 | Purchases | Sales | Value March 31, 2021 | Dividends | ||||||||||||||||
Investments in U.S. Government Money Market Fund —RBC Institutional Class 1 |
| |||||||||||||||||||
Emerging Markets Equity Fund | $4,507,131 | $725,136,192 | $729,643,323 | $ — | $8,797 | |||||||||||||||
Emerging Markets Small Cap Equity Fund | 272,478 | 1,670,601 | 1,897,979 | 45,100 | 151 | |||||||||||||||
Emerging Markets Value Equity Fund | — | 13,562,177 | 13,395,394 | 166,783 | 36 | |||||||||||||||
Global Opportunities Fund | 440,840 | 133,343,838 | 126,462,053 | 7,322,625 | 432 | |||||||||||||||
International Opportunities Fund | 7,735 | 49,117,864 | 46,285,773 | 2,839,826 | 638 |
Investment Transactions and Income:
Investment transactions are recorded on trade date. Dividend income is recorded on the ex- dividend date. In certain foreign markets where declaration of a dividend follows the ex-dividend date, the dividend will be recorded when the Fund is notified of the declaration date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Realized gains and losses from investment transactions are calculated based on the cost of the specific security (also known as identified cost basis). Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount using the effective yield method.
Expense, Investment Income and Gain/Loss Allocation:
Each Fund pays the expenses that are directly related to its operations, such as custodian fees or advisory fees. Expenses incurred by the Trust, such as trustee or legal fees, are allocated among each of the Funds in the Trust either proportionately based upon each Fund’s relative net assets or using another reasonable basis such as equally across all Funds in the Trust, depending on the nature of the
70
NOTES TO FINANCIAL STATEMENTS |
expense. Individual share classes within a Fund are charged expenses specific to that class, such as distribution fees and transfer agent fees. Within a Fund, expenses other than class specific expenses are allocated daily to each class based upon the proportion of relative net assets. Investment income and realized and unrealized gains or losses are allocated to each class of shares based on relative net assets.
Real Estate Investment Trusts:
The Funds may own shares of real estate investment trusts (”REITs“) which report information on the source of their distributions annually. Dividends paid by a REIT, other than capital gain distributions, will be taxable as ordinary income up to the amount of the REIT’s current and accumulated earnings and profits. Capital gain dividends paid by a REIT to a Fund will be treated as long term capital gains by the Fund and, in turn, may be distributed by the Fund to its shareholders as a capital gain distribution. Distributions received from a REIT in excess of its income are recorded as a return of capital and a reduction to the cost basis of the REIT.
Distributions to Shareholders:
Each Fund pays out any income that it receives, less expenses, in the form of dividends and capital gain distributions to its shareholders. Income dividends and capital gain distributions for each Fund are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions are calculated based on federal income tax regulations, which may differ from US GAAP. These “book/tax” differences may be either temporary or permanent in nature. To the extent these differences are determined, as of the end of the tax year, to be permanent, they are reclassified within a Fund’s capital accounts based on their federal tax basis treatment. These differences are primarily due to differing book and tax treatments in the timing and/or treatment of the recognition of net investment income or gain and losses, including foreign currency gains and losses, foreign taxes and passive foreign investment companies (PFICs).
For the year ended March 31, 2021, reclassifications for permanent differences were as follows:
Increase/(Decrease) Paid in Capital | Increase/(Decrease) Accumulated Earnings | |||||||
Emerging Markets Equity Fund | $(7,690 | ) | $7,690 | |||||
Emerging Markets Small Cap Equity Fund | (2,450 | ) | 2,450 |
3. Agreements and Other Transactions with Affiliates:
The Trust has entered into investment advisory agreements with RBC GAM-US under which RBC GAM-US manages each Funds’ assets and furnishes related office facilities, equipment, research and personnel. The agreements require each Fund to pay RBC GAM-US a monthly fee based upon average daily net assets. Under the terms of the agreement, RBC GAM-US is entitled to receive fees based on a percentage of the average daily net assets of each of the Funds as follows:
Emerging Market Equity Fund | 0.80 | % | ||
Emerging Markets Small Cap Equity Fund* | 1.04 | % | ||
Emerging Markets Value Equity Fund | 0.80 | % | ||
Global Opportunities Fund* | 0.65 | % | ||
International Opportunities Fund* | 0.70 | % |
* Prior to June 18, 2020, the annual rates for Emerging Markets Small Cap Equity Fund, Global Opportunities Fund and International Opportunities Fund were 1.25%, 0.76% and 0.80%, respectively.
71
NOTES TO FINANCIAL STATEMENTS |
RBC GAM-US has contractually agreed to waive fees and/or make payments in order to keep total operating expenses (excluding certain fees such as interest, taxes and acquired fund fees and expenses) of Class A, Class I and Class R6 shares of each Fund to the following levels:
Class A Annual Rate | Class I Annual Rate | Class R6 Annual Rate | ||||||||||
Emerging Markets Equity Fund | 1.13% | 0.88% | 0.88% | |||||||||
Emerging Markets Small Cap Equity Fund* | 1.49% | 1.24% | N/A | |||||||||
Emerging Markets Value Equity Fund | N/A | 0.95% | 0.88% | |||||||||
Global Opportunities Fund* | 1.00% | 0.75% | 0.70% | |||||||||
International Opportunities Fund* | 1.05% | 0.80% | 0.75% |
* Prior to June 18, 2020, the annual rates under the expense limitation agreement were 1.70% for Class A and 1.45% for Class I of Emerging Markets Small Cap Equity Fund; 1.11% for Class A, 0.86% for Class I and 0.81% for Class R6 of Global Opportunities Fund; and 1.14% for Class A, 0.89% for Class I and 0.84% for Class R6 of International Opportunities Fund.
This expense limitation agreement is in place until July 31, 2022 (September 30, 2022 for Emerging Markets Equity Fund) and may not be terminated by RBC GAM-US prior to that date. The agreement shall continue for additional one-year terms unless terminated or revised by the Board at any time or by RBC GAM-US at the expiration of any one-year period. The Advisor is entitled to recoup from the Fund or class the fees and/or operating expenses waived or reimbursed during any of the previous 3 years, provided the Fund is able to do so and remain in compliance with the expense limitation in place at the time the fees were waived or expenses paid.
At March 31, 2021, the amounts subject to possible recoupment under the expense limitation agreement were:
FYE 3/31/19 | FYE 3/31/20 | FYE 3/31/21 | Total | |||||||||||||
Emerging Markets Equity Fund | $ | 1,340,210 | $ | 1,594,901 | $ | 1,751,584 | $ | 4,686,695 | ||||||||
Emerging Markets Small Cap Equity Fund | 242,638 | 234,001 | 237,434 | 714,073 | ||||||||||||
Emerging Markets Value Equity Fund | 279,515 | 252,132 | 284,653 | 816,300 | ||||||||||||
Global Opportunities Fund | 170,557 | 197,222 | 271,393 | 639,172 | ||||||||||||
International Opportunities Fund | 231,471 | 266,018 | 410,189 | 907,678 |
RBC GAM-US voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Funds pay to RBC GAM-US indirectly through its investment in an affiliated money market fund. For the year ended March 31, 2021, the amount waived was $29,113, $274, $207, $2,488 and $1,815 for the Emerging Markets Equity Fund, Emerging Markets Small Cap Equity Fund, Emerging Markets Value Equity Fund, Global Opportunities Fund and International Opportunities Fund, respectively, and is included in expenses waived/reimbursed by Advisor in the Statements of Operations.
RBC GAM-US may also voluntarily waive and/or reimburse operating expenses of any Fund from time to time. Any such voluntary program may be changed or eliminated at any time without notice, and expenses waived under such program are not subject to recoupment.
The Funds are sub-advised by RBC GAM-UK, which is a wholly-owned subsidiary of Royal Bank of Canada, which is the parent company of the Advisor. The Sub-Advisor is paid by the Advisor out of the advisory fee paid by the Funds to the Advisor.
RBC GAM-US serves as co-administrator to the Funds. BNY Mellon Investment Servicing (US) Inc. (”BNY Mellon“) serves as co-administrator and fund accounting agent. Services provided under the administrative services contract include providing day-to-day administration of matters related to the Funds, maintenance of their records and the preparation of reports. Under the terms of the administrative services contract, RBC GAM-US does not receive a fee for its role as co-administrator. BNY Mellon receives a fee for its services payable by each Fund based in part on each Fund’s average net assets. BNY Mellon’s fee is included with ”Accounting fees“ in the Statements of Operations. Certain Officers and Trustees of the Trust are affiliated with the Advisor. Such Officers and Trustees receive no compensation from the Funds for serving in their respective roles.
72
NOTES TO FINANCIAL STATEMENTS |
The Trust currently pays each of the independent Trustees (Trustees of the Trust who are not directors, officers or employees of the Advisor, either Co-Administrator or Distributor) an annual retainer of $68,000. The Board Chairperson and Audit Committee Chairperson each receive an additional retainer of $2,500 annually, and all other trustees serving as Chair of a Board committee each receive an additional retainer of $1,000 annually. In addition, Independent Trustees receive a quarterly meeting fee of $6,500 for each in-person Board meeting attended, a meeting fee of $1,500 for each telephonic or Special Board meeting attended, a $1,500 fee for each Board committee meeting attended, and are reimbursed for all out-of-pocket expenses relating to attendance at such meetings. These amounts are included in the Statement of Operations in ”Trustees’ fees“.
In conjunction with the launch of each of the Funds or additional share classes, the Advisor invested seed capital to provide each Fund or share class with its initial investment assets. The table below shows, as of March 31, 2021, each Fund’s net assets, the shares of each Fund held by the Advisor, and the percent of total net assets represented by the Advisor’s investment.
Net Assets | Shares held by Advisor | % of Fund Net Assets | ||||||||||
Emerging Markets Small Cap Equity Fund | $ | 10,312,819 | 566,396 | 58.5% | ||||||||
Emerging Markets Value Equity Fund | $ | 43,962,187 | 543,106 | 13.7% | ||||||||
Global Opportunities Fund | $ | 264,571,575 | 810,952 | 5.9% | ||||||||
International Opportunities Fund | $ | 170,828,409 | 2,310 | 0.0% |
4. Fund Distribution:
Each of the Funds that offers Class A shares has adopted a Master Distribution 12b-1 Plan (the “Plan”) in which Quasar Distributors LLC (the “Distributor”) acts as the Funds’ distributor. The Plan permits each Fund to make payments for, or to reimburse the Distributor for, distribution-related costs and expenses of marketing shares of Class A covered under the Plan, and/or for providing shareholder services. The Plan does not apply to Class I and Class R6. The following chart shows the current Plan fee rate for Class A.
Class A | ||||
12b-1 Plan Fee | 0.25%* |
* Under the 12b-1 plan, the maximum fee rate for Class A shares is 0.50%. Currently the Board has approved an annual limit of 0.25%.
Plan fees are based on average daily net assets of Class A. Up to 0.25% of each Plan fee may be designated as a service fee, as defined by the applicable rules of the Financial Industry Regulatory Authority. The Distributor, subject to applicable legal requirements, may waive the Plan fee voluntarily, in whole or in part. For the year ended March 31, 2021, there were no fees waived by the Distributor.
For the year ended March 31, 2021, the Distributor received commissions of $1,375 front-end sales charges of Class A shares, of the Funds, of which $207 was paid to affiliated broker-dealers, and the remainder was either paid to unaffiliated broker-dealers or retained by the Distributor.
73
NOTES TO FINANCIAL STATEMENTS |
5. Securities Transactions:
The cost of securities purchased and proceeds from securities sold (excluding securities maturing less than one year from acquisition) for the year ended March 31, 2021 were as follows:
Purchases | Sales | |||||||||||
Emerging Markets Equity Fund | $ | 1,018,177,508 | $ | 274,355,639 | ||||||||
Emerging Markets Small Cap Equity Fund | 2,536,040 | 2,417,233 | ||||||||||
Emerging Markets Value Equity Fund | 43,319,562 | 15,947,993 | ||||||||||
Global Opportunities Fund | 232,814,122 | 80,094,139 | ||||||||||
International Opportunities Fund | 83,207,567 | 49,392,405 |
6. Capital Share Transactions:
The Trust is authorized to issue an unlimited number of shares of beneficial interest (“shares outstanding”) without par value. Transactions in capital stock of the Funds are summarized on the following pages:
Emerging Markets Equity Fund | Emerging Markets Small Cap Equity Fund | |||||||||||||||||||
For the Year Ended March 31, 2021 | For the Year Ended March 31, 2020 | For the Year Ended March 31, 2021 | For the Year Ended March 31, 2020 | |||||||||||||||||
CAPITAL TRANSACTIONS: |
| |||||||||||||||||||
Class A |
| |||||||||||||||||||
Proceeds from shares issued | $ | 286,616,571 | $ | 24,103,788 | $ | 3,240 | $ | 15,000 | ||||||||||||
Distributions reinvested | 162,966 | 785,965 | — | 135,437 | ||||||||||||||||
Cost of shares redeemed | (18,777,237 | ) | (15,211,351 | ) | (11,459 | ) | (87,954 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Change in Class A | $ | 268,002,300 | $ | 9,678,402 | $ | (8,219 | ) | $ | 62,483 | |||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Class I | ||||||||||||||||||||
Proceeds from shares issued | $ | 663,616,450 | $ | 656,629,075 | $ | 15,000 | $ | 710,547 | ||||||||||||
Distributions reinvested | 16,834,855 | 36,510,102 | 11,974 | 316,803 | ||||||||||||||||
Cost of shares redeemed | (264,217,496 | ) | (155,294,389 | ) | (164,744 | ) | (196,495 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Change in Class I | $ | 416,233,809 | $ | 537,844,788 | $ | (137,770 | ) | $ | 830,855 | |||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Class R6 | ||||||||||||||||||||
Proceeds from shares issued | $ | 89,875,347 | $ | 86,735,310 | $ | — | $ | — | ||||||||||||
Distributions reinvested | 2,307,638 | 4,384,986 | — | — | ||||||||||||||||
Cost of shares redeemed | (17,376,284 | ) | (6,791,273 | ) | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Change in Class R6 | $ | 74,806,701 | $ | 84,329,023 | $ | — | $ | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Change in net assets resulting from capital transactions | $ | 759,042,810 | $ | 631,852,213 | $ | (145,989 | ) | $ | 893,338 | |||||||||||
|
|
|
|
|
|
|
|
74
NOTES TO FINANCIAL STATEMENTS |
Emerging Markets Equity Fund | Emerging Markets Small Cap Equity Fund | |||||||||||||||||||
For the Year Ended March 31, 2021 | For the Year Ended March 31, 2020 | For the Year Ended March 31, 2021 | For the Year Ended March 31, 2020 | |||||||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Issued | 19,139,830 | 2,035,999 | 317 | 1,504 | ||||||||||||||||
Reinvested | 11,750 | 64,109 | — | 14,454 | ||||||||||||||||
Redeemed | (1,539,090 | ) | (1,308,819 | ) | (1,430 | ) | (9,123 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Change in Class A | 17,612,490 | 791,289 | (1,113 | ) | 6,835 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Class I | ||||||||||||||||||||
Issued | 49,761,963 | 54,951,716 | 1,733 | 73,708 | ||||||||||||||||
Reinvested | 1,193,115 | 2,927,835 | 1,217 | 33,596 | ||||||||||||||||
Redeemed | (20,357,430 | ) | (13,410,810 | ) | (18,828 | ) | (24,994 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Change in Class I | 30,597,648 | 44,468,741 | (15,878 | ) | 82,310 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Class R6 | ||||||||||||||||||||
Issued | 6,619,216 | 7,038,318 | — | — | ||||||||||||||||
Reinvested | 162,854 | 349,959 | — | — | ||||||||||||||||
Redeemed | (1,419,187 | ) | (570,609 | ) | — | — | ||||||||||||||
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|
| |||||||||||||
Change in Class R6 | 5,362,883 | 6,817,668 | — | — | ||||||||||||||||
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|
|
|
|
|
| |||||||||||||
Change in shares resulting from capital transactions | 53,573,021 | 52,077,698 | (16,991 | ) | 89,145 | |||||||||||||||
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|
|
75
NOTES TO FINANCIAL STATEMENTS |
Emerging Markets Value Equity Fund | Global Opportunities Fund | |||||||||||||||||||
For the Year Ended March 31, 2021 | For the Year Ended March 31, 2020 | For the Year Ended March 31, 2021 | For the Year Ended March 31, 2020 | |||||||||||||||||
CAPITAL TRANSACTIONS: |
| |||||||||||||||||||
Class A |
| |||||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 3,774 | $ | 10,000 | ||||||||||||
Distributions reinvested | — | — | 318 | — | ||||||||||||||||
Cost of shares redeemed | — | — | (4,293 | ) | — | |||||||||||||||
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|
|
|
|
|
| |||||||||||||
Change in Class A | $ | — | $ | — | $ | (201 | ) | $ | 10,000 | |||||||||||
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| |||||||||||||
Class I | ||||||||||||||||||||
Proceeds from shares issued | $ | 29,825,722 | $ | 65,059 | $ | 95,929,845 | $ | 58,189,118 | ||||||||||||
Distributions reinvested | 149,230 | 88,926 | 1,908,421 | 1,719,908 | ||||||||||||||||
Cost of shares redeemed | (2,204,799 | ) | — | (44,649,849 | ) | (9,726,601 | ) | |||||||||||||
|
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|
|
|
|
|
| |||||||||||||
Change in Class I | $ | 27,770,153 | $ | 153,985 | $ | 53,188,417 | $ | 50,182,425 | ||||||||||||
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| |||||||||||||
Class R6 | ||||||||||||||||||||
Proceeds from shares issued | $ | — | $ | — | $ | 134,316,152 | $ | 710,465 | ||||||||||||
Distributions reinvested | 86,448 | 90,889 | 2,077,066 | 2,036 | ||||||||||||||||
Cost of shares redeemed | — | — | (31,519,011 | ) | (862 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Change in Class R6 | $ | 86,448 | $ | 90,889 | $ | 104,874,207 | $ | 711,639 | ||||||||||||
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|
|
|
|
|
|
| |||||||||||||
Change in net assets resulting from capital transactions | $ | 27,856,601 | $ | 244,874 | $ | 158,062,423 | $ | 50,904,064 | ||||||||||||
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|
|
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|
| |||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Issued | — | — | 232 | 645 | ||||||||||||||||
Reinvested | — | — | 17 | — | ||||||||||||||||
Redeemed | — | — | (225 | ) | — | |||||||||||||||
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|
|
|
| |||||||||||||
Change in Class A | — | — | 24 | 645 | ||||||||||||||||
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| |||||||||||||
Class I | ||||||||||||||||||||
Issued | 3,554,158 | 7,326 | 5,089,835 | 4,002,984 | ||||||||||||||||
Reinvested | 14,908 | 10,117 | 101,296 | 111,900 | ||||||||||||||||
Redeemed | (194,642 | ) | — | (2,482,577 | ) | (730,076 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Change in Class I | 3,374,424 | 17,443 | 2,708,554 | 3,384,808 | ||||||||||||||||
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|
|
|
|
| |||||||||||||
Class R6 | ||||||||||||||||||||
Issued | — | — | 7,774,183 | 60,112 | ||||||||||||||||
Reinvested | 8,894 | 10,352 | 109,898 | 132 | ||||||||||||||||
Redeemed | — | — | (1,772,397 | ) | (59 | ) | ||||||||||||||
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|
|
|
|
|
|
| |||||||||||||
Change in Class R6 | 8,894 | 10,352 | 6,111,684 | 60,185 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Change in shares resulting from capital transactions | 3,383,318 | 27,795 | 8,820,262 | 3,445,638 | ||||||||||||||||
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|
|
|
|
|
|
|
76
NOTES TO FINANCIAL STATEMENTS |
International Opportunities Fund | ||||||||
For the Year Ended March 31, 2021 | For the Year Ended March 31, 2020 | |||||||
CAPITAL TRANSACTIONS: | ||||||||
Class A | ||||||||
Proceeds from shares issued | $ | 1,992,961 | $ | 10,000 | ||||
Distributions reinvested | 621 | — | ||||||
Cost of shares redeemed | (2,088,550 | ) | — | |||||
|
|
|
| |||||
Change in Class A | $ | (94,968 | ) | $ | 10,000 | |||
|
|
|
| |||||
Class I | ||||||||
Proceeds from shares issued | $ | 77,668,834 | $ | 32,061,054 | ||||
Distributions reinvested | 7,796,893 | 3,015,113 | ||||||
Cost of shares redeemed | (41,717,820 | ) | (11,153,729 | ) | ||||
|
|
|
| |||||
Change in Class I | $ | 43,747,907 | $ | 23,922,438 | ||||
|
|
|
| |||||
Class R6 | ||||||||
Distributions reinvested | $ | 1,024 | $ | 560 | ||||
|
|
|
| |||||
Change in Class R6 | $ | 1,024 | $ | 560 | ||||
|
|
|
| |||||
Change in net assets resulting from capital transactions | $ | 43,653,963 | $ | 23,932,998 | ||||
|
|
|
| |||||
SHARE TRANSACTIONS: | ||||||||
Class A | ||||||||
Issued | 209,618 | 907 | ||||||
Reinvested | 50 | — | ||||||
Redeemed | (208,837 | ) | — | |||||
|
|
|
| |||||
Change in Class A | 831 | 907 | ||||||
|
|
|
| |||||
Class I | ||||||||
Issued | 7,550,228 | 3,163,021 | ||||||
Reinvested | 624,751 | 271,387 | ||||||
Redeemed | (3,751,495 | ) | (1,134,844 | ) | ||||
|
|
|
| |||||
Change in Class I | 4,423,484 | 2,299,564 | ||||||
|
|
|
| |||||
Class R6 | ||||||||
Reinvested | 82 | 50 | ||||||
|
|
|
| |||||
Change in Class R6 | 82 | 50 | ||||||
|
|
|
| |||||
Change in shares resulting from capital transactions | 4,424,397 | 2,300,521 | ||||||
|
|
|
|
7. Federal Income Taxes:
It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined under Subchapter M of the Internal Revenue Code, and to distribute substantially all of its net investment income and net realized capital gains. Therefore, no federal tax liability is recorded in the financial statements of each Fund.
Fund Management has analyzed the Funds’ tax positions taken or expected to be taken on federal income tax returns for all open tax years (current and prior three tax years), and has concluded that no provision for federal income tax is required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
77
NOTES TO FINANCIAL STATEMENTS |
As of and during the year ended March 31, 2021, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the year ended March 31, 2021, the Funds did not incur any interest or penalties.
As of March 31, 2021, the tax cost of investments and the breakdown of unrealized appreciation (depreciation) for each Fund was as follows:
Tax Cost Of Investments | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) | |||||||||||||
Emerging Markets Equity Fund | $ | 2,288,265,164 | $ | 524,066,265 | $ | (159,595,253 | ) | $ | 364,471,012 | |||||||
Emerging Markets Small Cap Equity Fund | 9,148,572 | 2,415,197 | (1,331,505 | ) | 1,083,692 | |||||||||||
Emerging Markets Value Equity Fund | 35,942,292 | 9,661,165 | (1,803,112 | ) | 7,858,053 | |||||||||||
Global Opportunities Fund | 244,228,862 | 29,438,969 | (4,374,196 | ) | 25,064,773 | |||||||||||
International Opportunities Fund | 138,161,859 | 43,728,006 | (10,672,810 | ) | 33,055,196 |
78
NOTES TO FINANCIAL STATEMENTS |
The difference between book basis and tax basis unrealized appreciation/depreciation is attributable to the tax deferral of losses on wash sales and passive foreign investment company mark-to-market adjustment.
The tax character of distributions during the year ended March 31, 2021 were as follows:
Distributions Paid From | ||||||||||||||||
Ordinary Income | Net Long Term Capital Gains | Total Taxable Distributions | Total Distributions Paid | |||||||||||||
Emerging Markets Equity Fund | $ | 20,986,884 | $ | — | $ | 20,986,884 | $ | 20,986,884 | ||||||||
Emerging Markets Small Cap Equity Fund | 11,974 | — | 11,974 | 11,974 | ||||||||||||
Emerging Markets Value Equity Fund | 235,678 | — | 235,678 | 235,678 | ||||||||||||
Global Opportunities Fund | 322,897 | 3,754,938 | 4,077,835 | 4,077,835 | ||||||||||||
International Opportunities Fund | 1,655,425 | 7,920,505 | 9,575,930 | 9,575,930 |
The tax character of distributions during the year ended March 31, 2020 were as follows:
Distributions Paid From | ||||||||||||||||
Ordinary Income | Net Long Term Capital Gains | Total Taxable Distributions | Total Distributions Paid | |||||||||||||
Emerging Markets Equity Fund | $ | 43,979,625 | $ | 1,324,096 | $ | 45,303,721 | $ | 45,303,721 | ||||||||
Emerging Markets Small Cap Equity Fund | 314,203 | 139,241 | 453,444 | 453,444 | ||||||||||||
Emerging Markets Value Equity Fund | 179,815 | — | 179,815 | 179,815 | ||||||||||||
Global Opportunities Fund | 640,752 | 1,106,607 | 1,747,359 | 1,747,359 | ||||||||||||
International Opportunities Fund | 2,518,100 | 1,121,255 | 3,639,355 | 3,639,355 |
Total distributions paid may differ from the Statements of Changes in Net Assets because distributions are recognized when actually paid for tax purposes.
79
NOTES TO FINANCIAL STATEMENTS |
As of March 31, 2021, the components of accumulated earnings/(losses) on a tax basis were as follows:
Emerging Markets Equity Fund | Emerging Markets Small Cap Equity Fund | Emerging Markets Value Equity Fund | Global Opportunities Fund | International Opportunities Fund | ||||||||||||||||||
Undistributed ordinary income | $ | 29,284,253 | $ | 199,904 | $ | 3,434,736 | $ | 3,613,718 | $ | 4,230,069 | ||||||||||||
Undistributed long term gain | 39,217,208 | — | 100,593 | 10,441,565 | 3,687,992 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||
Accumulated earnings | 68,501,461 | 199,904 | 3,535,329 | 14,055,283 | 7,918,061 | |||||||||||||||||
Accumulated capital loss carryforwards | — | (687,415 | ) | (628,435 | ) | — | — | |||||||||||||||
Unrealized appreciation | 364,471,012 | 1,083,692 | 7,858,053 | 25,064,773 | 33,055,196 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Accumulated Earnings | $ | 432,972,473 | $ | 596,181 | $ | 10,764,947 | $ | 39,120,056 | $ | 40,973,257 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
During the year ended March 31, 2021, Emerging Market Equity Fund utilized $14,655,025 and Emerging Markets Value Fund utilized $51,631.
As of March 31, 2021, the Funds did not have any capital loss carryforwards for federal income tax purposes except Emerging Markets Small Cap Equity Fund had a short-term capital loss carryforward of $135,708, and a long-term capital loss carryforward of $551,707, and Emerging Markets Value Equity Fund had a short-term capital loss carryforward of $424,138 and a long-term capital loss carryforward of $204,297 available to offset future realized capital gains in accordance with the Regulated Investment Company Modernization Act of 2010. Emerging Markets Value Equity Fund’s amount includes losses in connection with an ownership change, therefore utilization of capital loss carryover is subject to annual limitations. These capital loss carryforwards are not subject to expiration.
Under current tax law, capital losses realized after October 31 and ordinary losses after December 31 of a Fund’s fiscal year may be deferred and treated as occurring on the first business day of the following fiscal year for tax purposes, which will be treated as arising on the first business day of the year ended March 31, 2022.
8. Market Timing:
The Trust strongly discourages attempts at market timing by Fund shareholders. Each Fund charges a redemption fee of 2% of the value of the shares redeemed or exchanged within 30 days of purchase, in addition to limiting the number of exchanges that may be made between Funds to five (5) per calendar year. When assessed, the redemption fee is deducted from the redemption proceeds and retained by the Fund, not by the Advisor. This redemption fee is not charged in cases where, for example, the redemption results from an automatic reinvestment or asset re-allocation not specifically directed by the shareholder. The Trust also reserves the right to reject any Fund purchase order made by persons deemed to be market timers. The Funds’ prospectus contains a full description of the Trust’s policies on market timing and/or excessive trading. The redemption fee is recorded as a credit to capital and is included in the capital transactions on the Statements of Changes in Net Assets.
During the year ended March 31, 2021, redemption fees were collected by the Emerging Markets Equity Fund, Emerging Markets Small Cap Equity Fund, International Opportunities Fund and Global Opportunities Fund in the amount of $99,382, $30, $800 and $1,237, respectively. There were no redemption fees collected by the other funds. Redemption fees collected by the Funds are included in the cost of shares redeemed on the Statements of Changes in Net Assets.
80
NOTES TO FINANCIAL STATEMENTS |
9. Line of Credit
Emerging Markets Equity Fund, Global Opportunities Fund and International Opportunities Fund (“Participating Funds”) are participants in a single uncommitted, unsecured $30,000,000 line of credit with The Bank of New York Mellon, the Funds’ custodian, to be used to fund shareholder redemptions requests and for other short-term temporary or emergency general business purposes. The line of credit has a scheduled termination date of June 18, 2021. Interest is charged on borrowings made under this line of credit at a rate per annum equal 1.25% plus the higher of the Federal Funds Effective Rate or one-month LIBOR rate. An undrawn fee of 0.08% per annum on the daily amount of the excess of $30,000,000 less the aggregate principal amount of advances outstanding is accrued and is due on the last business day of each calendar quarter. Each Participating Fund shall each pay its pro rata share of this fee based on its pro rata net assets at the time the fee is due and payable. Since each Participating Fund participates in the line of credit, there is no assurance that an individual fund will have access to all or any part of the $30,000,000 at any particular time. During the year ended March 31, 2021, none of the Funds borrowed under the line of credit.
10. Significant Risks
Shareholder concentration risk:
As of March 31, 2021, the following Funds had omnibus accounts which each owned more than 10% of a Fund’s outstanding shares as shown below:
# of Omnibus Accounts | % of Fund | |||||
Emerging Markets Equity Fund | 2 | 28.1% | ||||
Emerging Markets Small Cap Equity Fund | 1 | 40.8% | ||||
Emerging Markets Value Equity Fund | 2 | 78.2% | ||||
Global Opportunities Fund | 1 | 18.5% | ||||
International Opportunities Fund | 3 | 95.3% |
In addition, an unaffiliated shareholder owned 26.3% of Global Opportunities Fund as of March 31, 2021. Significant transactions by these shareholders may impact the Funds’ performance.
Market risk:
One or more markets in which a Fund invests may go down in value, sometimes sharply and unpredictably, and the value of a Fund’s portfolio securities may fall or fail to rise. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. In addition, global economies and financial markets are becoming increasingly interconnected, and political, economic and other conditions and events (including, but not limited to, natural disasters, pandemics, epidemics, and social unrest) in one country, region, or financial market may adversely impact issuers in a different country, region or financial market. Furthermore, the occurrence of, among other events, natural or man-made disasters, severe weather or geological events, fires, floods, earthquakes, outbreaks of disease (such as COVID-19, avian influenza or H1N1/09), epidemics, pandemics, malicious acts, cyber-attacks, terrorist acts or the occurrence of climate change, may also adversely impact the performance of a Fund. Such events could adversely impact issuers, markets and economies over the short- and long-term, including in ways that cannot necessarily be foreseen. A Fund could be negatively impacted if the value of a portfolio holding were harmed by such political or economic conditions or events. Moreover, such negative political and economic conditions and events could disrupt the processes necessary for a Fund’s operations.
Industry and sector focus risk:
At times the Funds may increase the relative emphasis of its investments in a particular industry or sector. The prices of securities of issuers in a particular industry or sector may be more susceptible to fluctuations due to changes in economic or business conditions, government regulations, availability of basic resources or supplies, or other events affect that industry or sector more than securities of issuers
81
NOTES TO FINANCIAL STATEMENTS |
in other industries and sectors. To the extent that the Fund increases the relative emphasis of its investments in a particular industry or sector, its shares’ values may fluctuate in response to events affecting that industry or sector.
11. Subsequent Events:
Fund Management has evaluated the impact of all subsequent events on the Funds and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.
82
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
To the Board of Trustees of RBC Funds Trust and Shareholders of RBC Emerging Markets Equity Fund, RBC Emerging Markets Small Cap Equity Fund, RBC Emerging Markets Value Equity Fund, RBC Global Opportunities Fund, and RBC International Opportunities Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of RBC Emerging Markets Equity Fund, RBC Emerging Markets Small Cap Equity Fund, RBC Emerging Markets Value Equity Fund, RBC Global Opportunities Fund, and RBC International Opportunities Fund (five of the funds constituting RBC Funds Trust, hereafter collectively referred to as the “Funds”) as of March 31, 2021, the related statements of operations for the year ended March 31, 2021, the statements of changes in net assets for each of the two years in the period ended March 31, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2021, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended March 31, 2021 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2021 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP |
Minneapolis, Minnesota |
May 21, 2021 |
We have served as the auditor of one or more investment companies in the RBC Funds since 2016.
83
OTHER FEDERAL INCOME TAX INFORMATION (UNAUDITED) |
For the year ended March 31, 2021, certain dividends paid by the Funds may be subject to a maximum tax rate of 20% as provided for by the Jobs and Growth Tax Reconciliation Act of 2003. The Funds intend to report the maximum amount allowable as taxed at a maximum rate of 20%. Complete information will be reported in conjunction with your 2020 Form 1099-DIV.
For the year ended March 31, 2021, the following Funds had a qualified dividend income percentage of:
Qualified Dividend Income | ||||
Emerging Markets Equity Fund | 34.82% | |||
Emerging Markets Small Cap Equity Fund | 37.89% | |||
Emerging Markets Value Equity Fund | 8.76% | |||
Global Opportunities Fund | 39.15% | |||
International Opportunities Fund | 34.62% |
For corporate shareholders, the following percentage of the total ordinary income distributions paid during the fiscal year ended March 31, 2021 qualify for the corporate dividends received deduction:
Dividends Received Deduction | ||||
Emerging Markets Equity Fund | 0.46% | |||
Emerging Markets Small Cap Equity Fund | 0.00% | |||
Emerging Markets Value Equity Fund | 0.00% | |||
Global Opportunities Fund | 15.32% | |||
International Opportunities Fund | 0.00% |
For the year ended March 31, 2021, the following Funds had a qualified interest income percentage of:
Qualified Interest Income | ||||
Emerging Markets Equity Fund | 0.13% | |||
Emerging Markets Small Cap Equity Fund | 0.05% | |||
Emerging Markets Value Equity Fund | 0.00% | |||
Global Opportunities Fund | 0.19% | |||
International Opportunities Fund | 0.01% |
84
OTHER FEDERAL INCOME TAX INFORMATION (UNAUDITED) |
For the year ended March 31, 2021, the following Funds had a qualified short term gains percentage of :
Qualified Short-Term Gains | ||||
Emerging Markets Equity Fund | 0.00% | |||
Emerging Markets Small Cap Equity Fund | 0.00% | |||
Emerging Markets Value Equity Fund | 100.00% | |||
Global Opportunities Fund | 100.00% | |||
International Opportunities Fund | 34.99% |
For the year ended March 31, 2021, the following Funds had a qualified foreign source income percentage of:
Qualified Foreign Source Income % | ||||
Emerging Markets Equity Fund | 41.63% | |||
Emerging Markets Small Cap Equity Fund | 41.21% | |||
Emerging Markets Value Equity Fund | 45.18% | |||
Global Opportunities Fund | 0.00% | |||
International Opportunities Fund | 31.60% |
The Funds have elected to pass through to their shareholders the foreign taxes paid for the year ended March 31, 2021 as follows:
Foreign Taxes Paid | Foreign Source Income | |||||||
Emerging Markets Equity Fund | $2,287,496 | $29,591,594 | ||||||
Emerging Markets Small Cap Equity Fund | 28,419 | 220,206 | ||||||
Emerging Markets Value Equity Fund | 132,509 | 502,438 | ||||||
Global Opportunities Fund | 0 | 0 | ||||||
International Opportunities Fund | 157,513 | 2,145,061 |
Pursuant to Internal Revenue Code Section 852(b)(3), Emerging Markets Equity Fund, Emerging Markets Value Equity Fund, Global Opportunities Fund and International Opportunities Fund reported $39,217,208, $100,593, $13,961,173 and $9,449,211 respectively as long-term capital gain distributions for the year ended March 31, 2021.
All reportings are based on financial information available as of the date of this annual report and, accordingly, are subject to change. For each item above, it is the intention of the Funds to report the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.
85
Independent Trustees(1)(2)
Lucy Hancock Bode (69)
Position, Term of Office and Length of Time Served with the Trust: Trustee since January 2004
Principal Occupation(s) During Past 5 Years: Healthcare consultant (self-employed) (1986 to present)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee During Past 5 Years: Franklin Street Partners (2014 to present); BioSignia (2006 to 2010).
Leslie H. Garner Jr. (70)
Position, Term of Office and Length of Time Served with the Trust: Trustee since January 2004
Principal Occupation(s) During Past 5 Years: President and Chief Executive Officer, The Greater Cedar Rapids Community Foundation (2010 to present); President, Cornell College (1994 to 2010)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee During Past 5 Years: None
Phillip G. Goff. (57)
Position, Term of Office and Length of Time Served with the Trust: Trustee since January 2020
Principal Occupation(s) During Past 5 Years: Senior Vice President/Corporate Controller and Funds Treasurer, TIAA (October 2006-August 2017)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee During Past 5 Years: None
Ronald James (70)
Position, Term of Office and Length of Time Served with the Trust: Trustee since January 2004
Principal Occupation(s) During Past 5 Years: Faculty member (part time), University of St. Thomas (2004 to present), President and Chief Executive Officer, Center for Ethical Business Cultures (2000 to January 2017)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee During Past 5 Years: Bremer Financial Corporation (2004 to present); Greater Twin Cities United Way (2012 to 2020); Best Buy Co. Inc. (2004 to 2013)
John A. MacDonald (72)
Position, Term of Office and Length of Time Served with the Trust: Trustee since January 2004
Principal Occupation(s) During Past 5 Years: Vice President and Treasurer, Hall Family Foundation (1988 to 2020); Chief Investment Officer, Chinquapin Trust Company (1999 to 2020)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee During Past 5 Years: None
86
MANAGEMENT (UNAUDITED)
Independent Trustees(1)(2)
James R. Seward, CFA (68)
Position, Term of Office and Length of Time Served with the Trust: Chairman of the Board and Trustee since January 2004
Principal Occupation(s) During Past 5 Years: Private investor (2000 to present)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee During Past 5 Years: Sooner Holdings (formerly Syntroleum Corporation) (1988 to 2015); Brookdale Senior Living Inc. (2008 to 2019)
Interested Trustees(1)(2)(3)
Kathleen A. Gorman (57)(5)
Position, Term of Office and Length of Time Served with the Trust: Trustee since September 2012
Principal Occupation(s) During Past 5 Years: President and Chief Executive Officer, RBC Funds (2012 to present); Assistant Secretary (March 2018 to present); Chief Compliance Officer, RBC Funds (2006 to 2012)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee During Past 5 Years: None
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Executive Officers(1)(3)(4)
Kathleen A. Gorman (57)
Position, Term of Office and Length of Time Served with the Trust: President and Chief Executive Officer since September 2012 and Assistant Secretary, (March 2018 to present)
Principal Occupation(s) During Past 5 Years: President and Chief Executive Officer, RBC Funds (2012 to present); Assistant Secretary, RBC Funds (March 2018 to present); Chief Compliance Officer, RBC Funds (2006 to 2012)
Kathleen A. Hegna (54)
Position, Term of Office and Length of Time Served with the Trust: Chief Financial Officer and Principal Accounting Officer since May 2009 and Treasurer since March 2014
Principal Occupation(s) During Past 5 Years: Associate Vice President and Director, Mutual Fund Services, RBC Global Asset Management (U.S.) Inc. (2009 to present)
Christina M. Weber (52)
Position, Term of Office and Length of Time Served with the Trust: Chief Compliance Officer since December 2012 and Secretary since September 2017
Principal Occupation(s) During Past 5 Years: Chief Compliance Officer, RBC Global Asset Management (U.S.) Inc. (June 2018 to present); Chief Compliance Officer, RBC Funds (2012 to present); Assistant Secretary, RBC Funds (2013 to 2017); Senior Compliance Officer, RBC Funds (March 2012 to December 2012)
(1) | Except as otherwise noted, the address of each Trustee/Officer is RBC Funds Trust, 50 South Sixth Street, Suite 2350, Minneapolis, Minnesota 55402. |
(2) | All Trustees must retire on or before December 31 of the year in which they reach age 75. The Board may temporarily waive this requirement when necessary to avoid depriving the Board of a Trustee with critical skills. |
(3) | On December 31, 2009, Voyageur Asset Management Inc. changed its name to RBC Global Asset Management (U.S.) Inc. Any references to RBC Global Asset Management (U.S.) Inc. for prior periods are deemed to be references to the prior entity. |
(4) | Each officer serves in such capacity for an indefinite period of time until his or her removal, resignation or retirement. |
(5) | Kathleen A. Gorman has been determined to be an interested Trustee by virtue of her position with the Advisor. |
The Fund’s Statement of Additional Information includes information about the Funds’ Trustees. To receive your free copy of the Statement of Additional Information, call toll free: 1-800-422-2766.
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The Funds offer three share classes: Class A, Class I and Class R6.
Class A
Class A shares, offered by Emerging Markets Equity Fund, Emerging Markets Small Cap Equity Fund, Global Opportunities Fund and International Opportunities Fund are available for purchase primarily through investment advisors, broker-dealers, banks and other financial services intermediaries. Class A shares of the Funds are currently subject to a maximum upfront sales charge of 5.75% and a 1.00% CDSC for redemption within 12 months of a $1 million or greater purchase. Class A shares currently include a 0.25% (25 bps) annual 12b-1 service and distribution fee.
Class I
Class I shares are available in all of the Funds and are intended for investors meeting certain minimum investment thresholds. This share class does not have an up-front sales charge (load) or a 12b-1 service and distribution fee.
Class R6
Class R6 shares are available in all Funds except Emerging Markets Small Cap Equity Fund and are intended for investors meeting certain minimum investment thresholds. This share class does not have an up-front sales charge (load) or a 12b-1 service and distribution fee.
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Shareholder Expense Examples
As a shareholder of the the RBC Funds, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the RBC Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2020 through March 31, 2021.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Beginning Account Value 10/1/20 | Ending Account Value 3/31/21 | Expenses Paid During Period* 10/1/20–3/31/21 | Annualized Expense Ratio During Period 10/1/20–3/31/21 | |||||||||||||
Emerging Markets Equity Fund | ||||||||||||||||
Class A | $1,000.00 | $1,211.60 | $6.23 | 1.13% | ||||||||||||
Class I | 1,000.00 | 1,213.80 | 4.86 | 0.88% | ||||||||||||
Class R6 | 1,000.00 | 1,213.60 | 4.86 | 0.88% | ||||||||||||
Emerging Markets Small Cap Equity Fund |
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Class A | 1,000.00 | 1,235.20 | 8.30 | 1.49% | ||||||||||||
Class I | 1,000.00 | 1,236.60 | 6.91 | 1.24% | ||||||||||||
Emerging Markets Value Equity Fund | ||||||||||||||||
Class I | 1,000.00 | 1,361.60 | 5.59 | 0.95% | ||||||||||||
Class R6 | 1,000.00 | 1,360.30 | 5.18 | 0.88% | ||||||||||||
Global Opportunities Fund | ||||||||||||||||
Class A | 1,000.00 | 1,194.70 | 5.47 | 1.00% | ||||||||||||
Class I | 1,000.00 | 1,196.50 | 4.11 | 0.75% | ||||||||||||
Class R6 | 1,000.00 | 1,197.10 | 3.83 | 0.70% | ||||||||||||
International Opportunities Fund | ||||||||||||||||
Class A | 1,000.00 | 1,253.30 | 5.90 | 1.05% | ||||||||||||
Class I | 1,000.00 | 1,255.70 | 4.50 | 0.80% | ||||||||||||
Class R6 | 1,000.00 | 1,255.60 | 4.22 | 0.75% |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 182/365 (to reflect one half year period).
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Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on each RBC Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value 10/1/20 | Ending Account Value 3/31/21 | Expenses Paid During Period* 10/1/20-3/31/21 | Annualized Expense Ratio During Period 10/1/20-3/31/21 | |||||||||||||
Emerging Markets Equity Fund | ||||||||||||||||
Class A | $1,000.00 | $1,019.30 | $5.69 | 1.13% | ||||||||||||
Class I | 1,000.00 | 1,020.54 | 4.43 | 0.88% | ||||||||||||
Class R6 | 1,000.00 | 1,020.54 | 4.43 | 0.88% | ||||||||||||
Emerging Markets Small Cap Equity Fund | ||||||||||||||||
Class A | 1,000.00 | 1,017.50 | 7.49 | 1.49% | ||||||||||||
Class I | 1,000.00 | 1,018.75 | 6.24 | 1.24% | ||||||||||||
Emerging Markets Value Equity Fund | ||||||||||||||||
Class I | 1,000.00 | 1,020.19 | 4.78 | 0.95% | ||||||||||||
Class R6 | 1,000.00 | 1,020.54 | 4.43 | 0.88% | ||||||||||||
Global Opportunities Fund | ||||||||||||||||
Class A | 1,000.00 | 1,019.95 | 5.04 | 1.00% | ||||||||||||
Class I | 1,000.00 | 1,021.19 | 3.78 | 0.75% | ||||||||||||
Class R6 | 1,000.00 | 1,021.44 | 3.53 | 0.70% | ||||||||||||
International Opportunities Fund | ||||||||||||||||
Class A | 1,000.00 | 1,019.70 | 5.29 | 1.05% | ||||||||||||
Class I | 1,000.00 | 1,020.94 | 4.03 | 0.80% | ||||||||||||
Class R6 | 1,000.00 | 1,021.19 | 3.78 | 0.75% |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 182/365 (to reflect one half year period).
91
STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT PROGRAM (UNAUDITED)
This section discusses the operation and effectiveness of the Liquidity Risk Management Program (the “Program”) of RBC Funds Trust (the “Trust”), including each of its series (each, a “Fund” and collectively, the “Funds”), established in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule” and the “1940 Act,” respectively). The Board of Trustees of the Trust (the “Board”), including a majority of the Trustees who are not “interested persons” as defined in the 1940 Act, approved the Program on behalf of each Fund, as required pursuant to the Liquidity Rule. The Board also approved the designation of RBC Global Asset Management (U.S.) Inc. (“RBC”), the investment adviser to each Fund, as the Program Administrator for the Program. RBC administers day-to-day implementation of the Program through a working group known as the Liquidity Risk Committee (the “Committee”), as set forth in the Program.
RBC, as Program Administrator, provided the Board with a report addressing the operation of the Program and assessing its adequacy and effectiveness of implementation, including, if applicable, the operation of any Fund’s highly liquid investments minimum (“HLIM”) and any material changes to the Program (the “Report”).
The Report covered the year ending December 31, 2020 (the “Review Period”).
I. Key Conclusions of the Report
The Program, as implemented, is reasonably designed to assess and manage each Fund’s liquidity risk. During the Review Period, the Program was implemented and operated effectively to achieve the goal of assessing and managing each Fund’s liquidity risk. No Fund was required to set an HLIM and each Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund. There were no material changes to the Program implemented during the Review Period.
II. Summary of the Review
A. Liquidity Risk Assessment and Review
Throughout the Review Period, the Program Administrator, in consultation with investment personnel, monitored the Funds’ portfolio liquidity and liquidity risk on an ongoing basis, as described in the Program, monthly in connection with recording the liquidity classification for each portfolio investment for reporting on Form N-PORT, and in Board reporting throughout the Review Period.
The Program Administrator also conducted an annual review assessing each Fund’s liquidity risk as described in the Report, in accordance with the requirements of the Program and the Liquidity Rule, taking into account the following factors enumerated in the Liquidity Rule and identified in the Program, as applicable:
a. Each Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions, including: (i) whether the Fund’s investment strategy is appropriate for an open-end fund; (ii) the extent to which the Fund’s strategy involves a relatively concentrated portfolio or large positions in particular issuers; (iii) the Fund’s use of borrowings for investment purposes; and (iv) the Fund’s use of derivatives (including for hedging purposes);
b. Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions; and
c. Holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources.
Investment Strategy and Portfolio Liquidity. The Program Administrator considered the factors identified above, among others, during both normal and reasonably foreseeable stressed conditions as provided in the Program. Pursuant to the review, the Program Administrator determined that each Fund’s investment strategy and use of derivatives are appropriate for an open-end fund.
Cash Flow. The Funds’ cash flows did not have a material effect on the ability to meet redemptions during the Review Period.
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Holdings of Cash and Borrowing Arrangements. As described in the Report, the Program Administrator determined that the Funds’ holdings of cash and borrowing arrangements were adequate for meeting the Funds’ expected cash flow needs to meet redemptions during the Review Period.
In light of the assessment and review as discussed above, the Program Administrator did not recommend any material changes in the management of the Funds’ liquidity risks, including with respect to any of the above factors.
B. Portfolio Holdings Classifications
During the Review Period, each Fund’s portfolio holdings (including derivative investments) were classified monthly as Highly Liquid Investments, Moderately Liquid Investments, Less Liquid Investments and Illiquid Investments pursuant to the Program, as required by the Liquidity Rule.
During the Review Period, the Funds classified portfolio investments (including, as applicable, derivatives transactions) according to asset class when appropriate, as described in the Program. In addition, pursuant to the Program, each Fund must separately classify and review any investment within an asset class if any market, trading, or investment-specific considerations are reasonably expected to significantly affect the liquidity of the investment as compared the Fund’s other portfolio holdings within that asset class. During the Review Period, there were no circumstances in which a Fund was required to separately classify any investment within an asset class.
Market Depth—Reasonably Anticipated Trading Size (“RATS”). In classifying and reviewing its portfolio investments or asset classes (as applicable), each Fund must determine whether trading varying portions of a position in a particular portfolio investment or asset class, in sizes that the Fund would reasonably anticipate trading, is reasonably expected to significantly affect its liquidity. Each Fund must take this determination into account when classifying the liquidity of that investment or asset class. Although there were higher than average redemptions during the Review Period due to COVID-19 pandemic lockdowns, there were no changes to the RATS assumptions for the Funds during the Review period.
Classification Review. As required by the Liquidity Rule, the Funds reviewed liquidity classifications on a monthly basis during the Review Period as described in the Program. The Committee met monthly, including twice in March in response to the COVID-19 pandemic, to review its portfolio investments’ classifications in connection with recording the liquidity classification for each portfolio investment for reporting on Form N-PORT. The Program Administrator oversaw the Funds’ process for classifying portfolio holdings under the Liquidity Rule and reviewed the classifications, as described in the Program. This review included a review of the methodology and data inputs used. During the Review Period, the Program Administrator determined that there were no material operational issues with the process for classifying portfolio holdings, although unexpected market closures resulting from the COVID-19 materially affected one or more investments’ classification. Due to market volatility and such market closures, the Committee determined that, between March 13th and the end of June, a daily review of the Funds’ classifications was warranted.
C. HLIM
The Program Administrator reviewed the process and standards for determining that each Fund primarily holds investments that are highly liquid. There were no changes recommended in the Report with respect to the status of any Fund as a Primarily Highly Liquid Fund (“PHLF”) and each Fund qualified as a PHLF on an ongoing basis during the Review Period as described in the Report. Accordingly, an HLIM was not required for any Fund during the Review Period pursuant to the relevant provisions of the Program.
D. Compliance with the 15% Limitation on Illiquid Investments
Pursuant to the Liquidity Rule, no Fund may acquire any illiquid investment if, after the acquisition, the Fund would have invested more than 15% of its assets in illiquid investments that are assets (the “15% Limit”). The Program Administrator monitored compliance with the 15% Limit as described in the Program. At no time during the Review Period did any Fund breach the 15% limit.
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STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT PROGRAM (UNAUDITED)
E. Redemptions in Kind
There were no redemptions in-kind effected by any Fund during the Review Period.
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RBC Funds
P.O. Box 701
Milwaukee, WI 53201-0701
800-422-2766
www.rbcgam.us
Performance data represents past performance and does not guarantee future results. The principal value of an investment and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
This report and the financial statements contained herein are provided for the information of RBC Funds shareholders. This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus, which contains information concerning investment objectives, risks, charges and expenses of the funds. Please read the prospectus carefully before investing.
This report and the financial statements contained herein are not intended to be a forecast of future events, a guarantee of future results, or investment advice. There is no assurance that certain securities will remain in or out of each fund’s portfolio. The views expressed in this report reflect those of the portfolio managers through the year ended March 31, 2021.
NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
RBC Global Asset Management (U.S.) Inc. serves as investment advisor for the RBC Funds. RBC Funds are distributed by Quasar Distributors LLC.
The RBC Funds are pleased to offer shareholder reports printed entirely on Forest Stewardship Council® certified paper. FSC® certification ensures that the paper used in this report contains fiber from well-managed and responsibly harvested forests that meet strict environmental and socioeconomic standards. |
RBCF-EM AR 03-21
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RBC Funds
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About your Annual Report | This annual report includes detailed information about your Fund including financial statements, performance, and a complete list of its holdings. |
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The RBC Funds compare their performance against various indices. Each of these indices is a widely recognized measure of return for the underlying category of securities. However, the indices are unmanaged, do not include fees, and cannot be invested in directly. |
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We hope the financial information presented will help you evaluate your investment in the RBC Funds. We also encourage you to read your Fund’s prospectus for further detail as to your Fund’s investment policies and risk profile. RBC Funds prospectuses and performance information subsequent to the date of this report are available on our website at www.rbcgam.us. |
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A description of the policies and procedures that your Fund uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1-800-422-2766; (ii) on the Fund’s website at www.rbcgam.us; and (iii) on the Securities and Exchange Commission’s (the “Commission”) website at http://www.sec.gov. |
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Each year the Trust files its proxy voting record for the twelve-month period ended June 30 with the SEC on Form N-PX no later than August 31. The records can be obtained on the SEC’s website at www.sec.gov and without charge by calling the Funds at 1-800-422-2766. |
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A schedule of each Fund’s portfolio holdings is filed with the Commission for the first and third quarters of each fiscal year on Form N-PORT. This information is available on the Commission’s website at http://www.sec.gov and on the Funds’ website at www.rbcgam.us.
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Table of | 1 | |||||||||||
Contents | 4 | |||||||||||
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Statement Regarding Liquidity Risk Management Program (Unaudited) | 59 | |||||||||||
1
LETTER FROM THE PORTFOLIO MANAGERS
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significant positive factor supporting investment grade bond spreads in 2020. With the Fed as the backstop, credit markets were reinforced, and investor demand was strong. Companies issued debt at record pace in 2020, and were met with incredible demand, as investors were forced to search for yield amid a low and negative real yield environment. Corporate debt levels are likely to be higher than pre COVID-19 levels due to the surge in issuance this year. As leverage continues to creep higher and spreads trend at the lower end of its long term range, there is a glaring gap between credit fundamentals and current valuations. | ||||||||||
Looking forward, we will continue to seek opportunities to positively impact performance by focusing on well researched security selection opportunities and maintaining a diversified portfolio of higher quality bonds. Thank you for your confidence and trust in the RBC Funds. | ||||||||||
Brandon Swensen, CFA | ||||||||||
Senior Portfolio Manager and Co-Head, U.S. Fixed Income RBC Global Asset Management (U.S.) Inc. | ||||||||||
Brian Svendahl, CFA | ||||||||||
Senior Portfolio Manager and Co-Head, U.S. Fixed Income RBC Global Asset Management (U.S.) Inc. | ||||||||||
Past performance does not guarantee future results. | ||||||||||
Opinions expressed are subject to change, are not guaranteed, and should not be considered a recommendation to buy or sell any security. | ||||||||||
Diversification does not assure a profit or protect against loss in a declining market. | ||||||||||
Mutual fund investing involves risk. Principal loss is possible. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. The Funds invest in mortgage-related securities including pass-throughs and collateralized mortgage obligations, which include additional risks that an investor should be aware of such as credit risk, prepayment risk, possible illiquidity and default, and increased susceptibility to adverse economic developments. Investments in lower- and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities. The Funds may invest in derivatives, including futures contracts, which involve risks different from and, in certain cases, greater than risks presented by more traditional investments. These risks are described more fully in the prospectus. | ||||||||||
The ICE BofAML 1-3 Year US Corporate & Government Index tracks the performance of U.S. dollar-denominated, investment grade debt publicly issued in the U.S. domestic market, including U.S. Treasury, U.S. agency, foreign government, supranational, and corporate securities with a remaining term to final maturity less than three years. You cannot invest directly in an index. | ||||||||||
The ICE BofAML US 1-Year Treasury Bill Index comprises a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled into a newly selected issue. The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to, but not beyond, one year from the rebalancing date. You cannot invest directly in an index. | ||||||||||
2
LETTER FROM THE PORTFOLIO MANAGERS
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The U.S. Treasury yield curve represents the yield of a U.S. Treasury bond at different maturities. A U.S. Treasury bond is theoretically considered to be free of default risk, and represents the minimum yield investors are prepared to accept for bonds of different maturities.
Duration is a measure of price sensitivity of a debt security or a portfolio of debt securities relative to changes in interest rates. The longer a security’s duration, the more sensitive it will be to changes in interest rates. | ||||
A basis point is a unit of measure equal to one one-hundredth of a percent. | ||||
The federal funds rate is the interest rate banks charge one another for loans made overnight to maintain their reserve requirements. The Federal Open Market Committee, within the Federal Reserve, sets these rates. | ||||
Spreads refer to the difference in yield between two similar securities. | ||||
3
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RBC Global Asset Management (U.S.) Inc. (“RBC GAM-US”) serves as the investment advisor to the RBC Funds. RBC GAM-US employs a team approach to the management of the Funds, with no individual team member being solely responsible for the investment decisions. Each Fund’s management team has access to RBC GAM-US’s investment research and other money management resources.
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Brian Svendahl, CFA |
Brian Svendahl, CFA Managing Director, Co-Head, U.S. Fixed Income Brian Svendahl oversees the fixed income research, portfolio management and trading at RBC GAM-US. In addition to shaping the firm’s overall fixed income philosophy and process, he is a portfolio manager for the Funds and many of RBC GAM-US’s government mandates. Brian joined RBC GAM-US in 2005 and most recently led the mortgage and government team before being promoted to Co-Head in 2012. Prior to joining RBC GAM-US, he held several risk management, research and trading positions at Wells Fargo. Brian’s experience also includes liability management and implementing balance sheet hedging strategies. He first started in the investment industry in 1992. He earned a BS in economics from the University of Minnesota and a BBA in finance and an MBA from the University of Minnesota Carlson School of Management. Brian is a CFA charterholder. | |||||
Brandon T. Swensen, CFA |
Brandon T. Swensen, CFA Vice President, Co-Head, U.S. Fixed Income Brandon Swensen oversees RBC GAM-US’s fixed income research, portfolio management and trading. In addition to shaping the firm’s overall fixed income philosophy and process, he is a portfolio manager for the Funds and several cash management and core solutions. Brandon joined RBC GAM-US in 2000 and most recently was a portfolio manager on the mortgage and government team before being promoted to Co-Head. He also held research analyst positions covering asset-backed securities and credit and served as a financial analyst for the firm. Brandon earned a BS in finance from St. Cloud State University and an MBA in finance from the University of St. Thomas. He is a CFA charterholder and member of the CFA Society of Minnesota. | |||||
4
1 Year | 3 Year | 5 Year | Since Inception(a) | Net Expense Ratio(b)(c) |
Gross | |||||||||||||||||||
Average Annual Total Returns as of March 31, 2021 (Unaudited) |
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RBC Short Duration Fixed Income Fund | ||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||
- At Net Asset Value | 6.45% | 3.38% | 2.63% | 2.24% | 0.45% | 1.58% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
- At Net Asset Value | 6.35% | 3.45% | 2.69% | 2.32% | 0.35% | 0.68% | ||||||||||||||||||
ICE BofAML 1-3 | ||||||||||||||||||||||||
Year U.S. Corporate & Government Index(d) | 1.69% | 3.07% | 2.02% | 1.73% | ||||||||||||||||||||
RBC Ultra-Short Fixed Income Fund |
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Class A | ||||||||||||||||||||||||
- At Net Asset Value | 5.78% | 2.68% | 2.22% | 1.80% | 0.38% | 0.81% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
- At Net Asset Value | 5.89% | 2.79% | 2.30% | 1.89% | 0.28% | 0.77% | ||||||||||||||||||
ICE BofAML U.S. | ||||||||||||||||||||||||
1-Year Treasury Bill Index(d) | 0.25% | 2.12% | 1.55% | 1.18% |
Performance data quoted represents past performance. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Performance shown reflects contractual fee waivers, without such fee waivers total returns would be reduced. For performance data current to the most recent month-end go to www.rbcgam.us. Please see footnotes below.
(a) | The inception date (commencement date) is March 3, 2014 for Class A shares and December 30, 2013 for Class I shares. The performance in the table for the Class A shares prior to March 3, 2014 reflects the performance of the Class I shares since the Fund’s inception. |
(b) | The advisor has contractually agreed to waive fees and/or make payments in order to keep total operating expenses of the Fund to the levels listed under net expense ratio until July 31, 2022. |
(c) | The Fund’s expenses reflect the most recent year end (March 31, 2021). |
(d) | Each of the comparative indices is a widely recognized market value weighted measure of the return of securities, but do not include sales fees or operating expenses. You cannot invest directly in indices. |
The ICE BofAML 1-3 Year US Corporate & Government Index tracks the performance of U.S. dollar-denominated, investment grade debt publicly issued in the U.S. domestic market, including U.S. Treasury, U.S. agency, foreign government, supranational, and corporate securities with a remaining term to final maturity less than three years. You cannot invest directly in an index.
The ICE BofAML US 1-Year Treasury Bill Index comprises a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled into a newly selected issue. The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to, but not beyond, one year from the rebalancing date. You cannot invest directly in an index.
5
6
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
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RBC Short Duration Fixed Income Fund | ||||
Fund holdings and/or sector allocations are subject to change at any time and are not recommendations to buy or sell any security. Current and future holdings are subject to risk. | ||||
Past performance is not a guarantee of future results. | ||||
7
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
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RBC Short Duration Fixed Income Fund
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Investment Objective | Current income consistent with preservation of capital.
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Benchmark | ICE BofAML 1-3 Year US Corporate & Government Index
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Asset Allocation as of 3/31/21 (% of Fund’s investments) |
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Top Ten Holdings (excluding investment companies) (as of 3/31/21) (% of Fund’s net assets) | Drive Auto Receivables Trust, Series 2019-1, Class D, 4.09%, 6/15/26 | 1.78% | Drive Auto Receivables Trust, Series 2018-5, Class D, 4.30%, 4/15/26 | 1.21% | ||||||||||
Charter Communications Operating LLC / Charter Communications Operating Capital, 4.46%, 7/23/22 | 1.61% | Williams Cos., Inc. (The), 3.35%, 8/15/22 Roper Technologies, Inc., 2.35%, 9/15/24 | 1.20% 1.17% | |||||||||||
CVS Health Corp., 2.63%, 8/15/24 | 1.31% | Leidos, Inc., 2.95%, 5/15/23 | 1.17% | |||||||||||
Dell Equipment Finance Trust, Series 2018-2, Class C, 3.72%, 10/22/23 | 1.26% | Raytheon Technologies Corp., 3.20%, 3/15/24 | 1.16% | |||||||||||
Sunrun Vulcan Issuer LLC, Series 2021-1A, Class A, 2.46%, 1/30/52 | 1.25% | |||||||||||||
*A listing of all portfolio holdings can be found beginning on page 13
| ||||||||||||||
Growth of $10,000 Initial Investment Since Inception (12/30/13) | ||||||||||||||
The graph reflects an initial investment of $10,000 over the period from December 30, 2013 (commencement of operations) to March 31, 2021 and is based on Class I shares. The Fund’s total return includes reinvested dividends and capital gains. The Fund’s total return also includes operating expenses that reduce return while the total return of the index does not. The graph does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. | ||||||||||||||
8
This Page Intentionally Left Blank
9
10
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
| ||||
RBC Ultra-Short Fixed Income Fund | ||||
Fund holdings and/or sector allocations are subject to change at any time and are not recommendations to buy or sell any security. Current and future holdings are subject to risk. | ||||
Past performance is not a guarantee of future results. | ||||
11
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
| ||||||||||||||||||
RBC Ultra-Short Fixed Income Fund
| ||||||||||||||||||
Investment Objective |
Current income consistent with preservation of capital.
| |||||||||||||||||
Benchmark |
ICE BofAML US 1-Year Treasury Bill Index
| |||||||||||||||||
Asset Allocation as of 3/31/21 (% of Fund’s investments) |
| |||||||||||||||||
Top Ten Holdings (excluding investment companies) (as of 3/31/21) (% of Fund’s net assets) |
American Tower Corp., REIT, 5.00%, 2/15/24 Willis North America, Inc., 3.60%, 5/15/24 Bank of America Corp., (LIBOR USD 3-Month + 0.960%), GMTN, 1.18%, 7/23/24 Dell International LLC / EMC Corp., 5.45%, |
1.46% 1.40% 1.32% |
Charter Communications Operating LLC / Charter Communications Operating Capital, Series USD, 4.50%, 2/1/24 |
1.14% | ||||||||||||||
1.31% | Mid-America Apartments LP, 4.30%, 10/15/23 Regions Financial Corp., 3.80%, 8/14/23 | 1.13% 1.12% | ||||||||||||||||
GM Financial Automobile Leasing Trust, Series 2020-2, Class D, 3.21%, 12/20/24 | 1.25% | Leidos, Inc., 2.95%, 5/15/23 | 1.09% | |||||||||||||||
Charter Communications Operating LLC / Charter Communications Operating Capital, 4.46%, 7/23/22 | 1.14% | |||||||||||||||||
*A listing of all portfolio holdings can be found beginning on page 21
| ||||||||||||||||||
Growth of $10,000 Initial Investment Since Inception (12/30/13) | ||||||||||||||||||
The graph reflects an initial investment of $10,000 over the period from December 30, 2013 (commencement of operations) to March 31, 2021 and is based on Class I shares. The Fund’s total return includes reinvested dividends and capital gains. The Fund’s total return also includes operating expenses that reduce return while the total return of the index does not. The graph does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. | ||||||||||||||||||
12
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Short Duration Fixed Income Fund
|
March 31, 2021 |
Principal Amount | Value | |||||
Corporate Bonds — 70.75% | ||||||
Basic Materials — 3.43% | ||||||
$ 350,000 | DuPont de Nemours, Inc., (LIBOR USD 3-Month + 1.110%), 1.30%, 11/15/23(a) | $ | 355,700 | |||
350,000 | Georgia-Pacific LLC, 1.75%, 9/30/25(b) | 355,167 | ||||
400,000 | Nutrien Ltd., 3.15%, 10/1/22 | 412,652 | ||||
500,000 | Nutrition & Biosciences, Inc., 0.70%, 9/15/22(b) | 501,320 | ||||
100,000 | Nutrition & Biosciences, Inc., 1.23%, 10/1/25(b) | 98,321 | ||||
500,000 | PPG Industries, Inc., 1.20%, 3/15/26 | 491,225 | ||||
|
| |||||
2,214,385 | ||||||
|
| |||||
Communications — 5.77% | ||||||
175,000 | AT&T, Inc., 0.90%, 3/25/24 | 175,144 | ||||
500,000 | AT&T, Inc., 4.45%, 4/1/24 | 549,446 | ||||
1,000,000 | Charter Communications Operating LLC / Charter Communications Operating Capital, 4.46%, 7/23/22 | 1,042,803 | ||||
150,000 | Comcast Corp., (LIBOR USD 3-Month + 0.630%), 0.87%, 4/15/24(a) | 151,565 | ||||
250,000 | Qwest Corp., 6.75%, 12/1/21 | 258,155 | ||||
155,000 | Rogers Communications, Inc., 3.00%, 3/15/23 | 161,277 | ||||
350,000 | Verizon Communications, Inc., 1.45%, 3/20/26 | 350,117 | ||||
250,000 | Videotron Ltd., 5.00%, 7/15/22 | 260,332 | ||||
500,000 | Videotron Ltd., 5.38%, 6/15/24(b) | 547,421 | ||||
196,000 | Walt Disney Co. (The), 7.75%, 1/20/24 | 231,758 | ||||
|
| |||||
3,728,018 | ||||||
|
| |||||
Consumer, Cyclical — 4.73% | ||||||
400,000 | 7-Eleven, Inc., 0.80%, 2/10/24(b) | 398,592 | ||||
350,000 | Daimler Finance North America LLC, 0.75%, 3/1/24(b) | 348,452 | ||||
500,000 | Ford Motor Credit Co. LLC, 3.66%, 9/8/24 | 515,704 | ||||
250,000 | General Motors Financial Co., Inc., 2.90%, 2/26/25 | 262,670 | ||||
200,000 | General Motors Financial Co., Inc., 3.45%, 1/14/22 | 203,972 | ||||
165,000 | General Motors Financial Co., Inc., 4.00%, 1/15/25 | 179,373 | ||||
200,000 | General Motors Financial Co., Inc., 4.35%, 4/9/25 | 219,903 | ||||
250,000 | Lennar Corp., 4.75%, 11/15/22 | 263,123 | ||||
400,000 | Volkswagen Group of America Finance LLC, 2.70%, 9/26/22(b) | 413,024 | ||||
250,000 | Walgreens Boots Alliance, Inc., 3.30%, 11/18/21 | 253,135 | ||||
|
| |||||
3,057,948 | ||||||
|
| |||||
Consumer, Non-cyclical — 10.30% | ||||||
250,000 | AbbVie, Inc., 2.30%, 11/21/22 | 257,128 | ||||
400,000 | AbbVie, Inc., 3.25%, 10/1/22 | 413,487 | ||||
250,000 | AbbVie, Inc., 3.45%, 3/15/22 | 255,766 | ||||
125,000 | Becton Dickinson and Co., (LIBOR USD 3-Month + 1.030%), 1.21%, 6/6/22(a) | 126,167 | ||||
639,000 | Becton Dickinson and Co., 2.89%, 6/6/22 | 655,631 | ||||
400,000 | Becton Dickinson and Co., 3.36%, 6/6/24 | 428,971 | ||||
350,000 | Cigna Corp., (LIBOR USD 3-Month + 0.890%), 1.13%, 7/15/23(a) | 354,154 |
13
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Short Duration Fixed Income Fund (cont.)
|
March 31, 2021 |
Principal Amount | Value | |||||
$800,000 | CVS Health Corp., 2.63%, 8/15/24 | $ | 843,895 | |||
14,000 | CVS Health Corp., 3.70%, 3/9/23 | 14,850 | ||||
250,000 | EMD Finance LLC, 3.25%, 3/19/25(b) | 268,128 | ||||
140,000 | Equifax, Inc., 2.60%, 12/1/24 | 147,880 | ||||
100,000 | Equifax, Inc., 3.60%, 8/15/21 | 101,154 | ||||
450,000 | Gilead Sciences, Inc., 0.75%, 9/29/23 | 450,501 | ||||
500,000 | HCA, Inc., 5.88%, 5/1/23 | 543,983 | ||||
250,000 | Health Care Service Corp. A Mutual Legal Reserve Co., 1.50%, 6/1/25(b) | 251,899 | ||||
190,000 | McCormick & Co., Inc., 0.90%, 2/15/26 | 184,957 | ||||
250,000 | Molson Coors Brewing Co., 2.10%, 7/15/21 | 250,805 | ||||
250,000 | Shire Acquisitions Investments Ireland DAC, 2.88%, 9/23/23 | 262,914 | ||||
350,000 | Stryker Corp., 0.60%, 12/1/23 | 350,192 | ||||
250,000 | United Rentals North America, Inc., 5.88%, 9/15/26 | 262,098 | ||||
225,000 | Viatris, Inc., 1.13%, 6/22/22(b) | 226,308 | ||||
|
| |||||
6,650,868 | ||||||
|
| |||||
Energy — 9.70% | ||||||
250,000 | Cheniere Energy Partners LP, 5.63%, 10/1/26 | 261,567 | ||||
200,000 | Enbridge Energy Partners LP, 4.20%, 9/15/21 | 201,442 | ||||
500,000 | Enbridge, Inc., 2.50%, 1/15/25 | 520,779 | ||||
500,000 | Energy Transfer Operating LP, 4.50%, 4/15/24 | 544,801 | ||||
550,000 | Energy Transfer Operating LP, 5.20%, 2/1/22 | 564,274 | ||||
200,000 | Kinder Morgan Energy Partners LP, 4.25%, 9/1/24 | 220,028 | ||||
500,000 | Kinder Morgan, Inc., 4.30%, 6/1/25 | 558,434 | ||||
400,000 | MPLX LP, (LIBOR USD 3-Month + 1.100%), 1.29%, 9/9/22(a) | 400,179 | ||||
250,000 | ONEOK Partners LP, 3.38%, 10/1/22 | 258,261 | ||||
350,000 | ONEOK, Inc., 4.25%, 2/1/22 | 357,754 | ||||
275,000 | Pioneer Natural Resources Co., 0.75%, 1/15/24 | 274,315 | ||||
500,000 | Plains All American Pipeline LP / PAA Finance Corp., 3.65%, 6/1/22 | 511,988 | ||||
750,000 | Williams Cos., Inc. (The), 3.35%, 8/15/22 | 772,450 | ||||
250,000 | Williams Cos., Inc. (The), 4.00%, 11/15/21 | 253,125 | ||||
517,000 | Williams Cos., Inc. (The), 4.30%, 3/4/24 | 564,119 | ||||
|
| |||||
6,263,516 | ||||||
|
| |||||
Financial — 18.32% | ||||||
350,000 | American Tower Corp., REIT, 3.50%, 1/31/23 | 368,446 | ||||
500,000 | American Tower Corp., REIT, 5.00%, 2/15/24 | 557,789 | ||||
400,000 | Bank of America Corp., (LIBOR USD 3-Month + 0.790%), 3.00%, 12/20/23(c) | 416,208 | ||||
250,000 | Bank of Montreal, Series E, 3.30%, 2/5/24 | 268,229 | ||||
250,000 | Barclays Plc, 3.20%, 8/10/21 | 252,463 | ||||
500,000 | Barclays Plc, 3.68%, 1/10/23 | 511,471 | ||||
200,000 | BNP Paribas SA, 2.95%, 5/23/22(b) | 205,571 | ||||
550,000 | BNP Paribas SA, 3.50%, 3/1/23(b) | 580,055 | ||||
149,000 | Camden Property Trust, REIT, 4.88%, 6/15/23 | 160,423 | ||||
250,000 | Canadian Imperial Bank of Commerce, (LIBOR USD 3-Month + 0.660%), 0.84%, 9/13/23(a) | 252,926 |
14
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Short Duration Fixed Income Fund (cont.)
|
March 31, 2021 |
Principal Amount | Value | |||||
$250,000 | CIT Group, Inc., 4.75%, 2/16/24 | $ | 271,659 | |||
350,000 | Citigroup, Inc., 4.04%, 6/1/24(c) | 375,172 | ||||
300,000 | Cooperatieve Rabobank UA, (LIBOR USD 3-Month + 0.480%), 0.71%, 1/10/23(a) | 301,702 | ||||
250,000 | Cooperatieve Rabobank UA, 3.95%, 11/9/22 | 263,210 | ||||
300,000 | Credit Agricole SA, 3.25%, 10/4/24(b) | 322,134 | ||||
500,000 | Credit Agricole SA, 3.75%, 4/24/23(b) | 531,462 | ||||
350,000 | Credit Suisse Group AG, 3.57%, 1/9/23(b) | 357,193 | ||||
500,000 | Credit Suisse Group Funding Guernsey Ltd., 3.80%, 9/15/22 | 521,233 | ||||
275,000 | Crown Castle International Corp., REIT, 1.35%, 7/15/25 | 274,199 | ||||
400,000 | Goldman Sachs Group, Inc. (The), Series VAR, Series VAR, 0.63%, 11/17/23(c) | 399,861 | ||||
250,000 | Goldman Sachs Group, Inc. (The), 0.67%, 3/8/24(c) | 249,668 | ||||
500,000 | Goldman Sachs Group, Inc. (The), (LIBOR USD 3-Month + 0.990%), 2.91%, 7/24/23(c) | 514,806 | ||||
550,000 | Goldman Sachs Group, Inc. (The), 3.63%, 2/20/24 | 591,748 | ||||
250,000 | HSBC Holdings Plc, 3.60%, 5/25/23 | 266,015 | ||||
400,000 | ING Groep NV, 4.10%, 10/2/23 | 433,666 | ||||
200,000 | JPMorgan Chase & Co., (LIBOR USD 3-Month + 0.890%), 1.11%, 7/23/24(a) | 202,446 | ||||
330,000 | JPMorgan Chase & Co., 1.51%, 6/1/24(c) | 336,736 | ||||
490,000 | JPMorgan Chase & Co., 3.21%, 4/1/23(c) | 503,273 | ||||
375,000 | Lloyds Banking Group Plc, (LIBOR USD 3-Month + 0.810%), 2.91%, 11/7/23(c) | 388,163 | ||||
250,000 | Lloyds Banking Group Plc, 3.00%, 1/11/22 | 254,976 | ||||
200,000 | Morgan Stanley, (LIBOR USD 3-Month + 0.930%), 1.15%, 7/22/22(a) | 200,453 | ||||
250,000 | Morgan Stanley, MTN, 2.75%, 5/19/22 | 256,682 | ||||
200,000 | Principal Life Global Funding II, 0.88%, 1/12/26(b) | 194,586 | ||||
250,000 | Westpac Banking Corp., (LIBOR USD 3-Month + 0.710%), 0.90%, 6/28/22(a) | 251,883 | ||||
|
| |||||
11,836,507 | ||||||
|
| |||||
Industrial — 6.57% | ||||||
350,000 | Agilent Technologies, Inc., 3.88%, 7/15/23 | 372,895 | ||||
100,000 | Boeing Co. (The), 1.17%, 2/4/23 | 100,420 | ||||
200,000 | Boeing Co. (The), 1.43%, 2/4/24 | 200,313 | ||||
150,000 | Boeing Co. (The), 2.20%, 2/4/26 | 149,619 | ||||
290,000 | General Electric Co., MTN, 5.55%, 1/5/26 | 343,874 | ||||
250,000 | Ingersoll-Rand Global Holding Co. Ltd., 4.25%, 6/15/23 | 269,875 | ||||
250,000 | Ingersoll-Rand Luxembourg Finance SA, 3.55%, 11/1/24 | 270,269 | ||||
700,000 | Raytheon Technologies Corp., 3.20%, 3/15/24 | 747,052 | ||||
250,000 | Republic Services, Inc., 2.50%, 8/15/24 | 263,119 | ||||
725,000 | Roper Technologies, Inc., 2.35%, 9/15/24 | 758,161 | ||||
50,000 | Roper Technologies, Inc., 2.80%, 12/15/21 | 50,758 |
15
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Short Duration Fixed Income Fund (cont.)
|
March 31, 2021 |
Principal Amount | Value | |||||
$275,000 | Roper Technologies, Inc., 3.65%, 9/15/23 | $ | 294,693 | |||
425,000 | Teledyne Technologies, Inc., 0.95%, 4/1/24 | 423,297 | ||||
|
| |||||
4,244,345 | ||||||
|
| |||||
Technology — 4.98% | ||||||
350,000 | Citrix Systems, Inc., 1.25%, 3/1/26 | 344,715 | ||||
650,000 | Dell International LLC / EMC Corp., 5.45%, 6/15/23(b) | 710,365 | ||||
400,000 | Fidelity National Information Services, Inc., 0.60%, 3/1/24 | 397,820 | ||||
725,000 | Leidos, Inc., 2.95%, 5/15/23(b) | 757,914 | ||||
375,000 | Microchip Technology, Inc., 0.97%, 2/15/24(b) | 374,447 | ||||
250,000 | NXP BV / NXP Funding LLC, 4.63%, 6/1/23(b) | 270,748 | ||||
100,000 | NXP BV / NXP Funding LLC / NXP USA, Inc., 2.70%, 5/1/25(b) | 104,895 | ||||
250,000 | Open Text Corp., 5.88%, 6/1/26(b) | 258,768 | ||||
|
| |||||
3,219,672 | ||||||
|
| |||||
Utilities — 6.95% | ||||||
600,000 | American Electric Power Co., Inc., Series M, 0.75%, 11/1/23 | 600,212 | ||||
500,000 | Avangrid, Inc., 3.15%, 12/1/24 | 537,820 | ||||
275,000 | CenterPoint Energy Resources Corp., 0.70%, 3/2/23 | 275,022 | ||||
150,000 | CenterPoint Energy, Inc., 3.85%, 2/1/24 | 162,230 | ||||
370,000 | Consolidated Edison, Inc., Series A, 0.65%, 12/1/23 | 369,413 | ||||
500,000 | Evergy, Inc., 2.45%, 9/15/24 | 523,791 | ||||
350,000 | Exelon Corp., 2.45%, 4/15/21 | 350,150 | ||||
200,000 | Florida Power & Light Co., (LIBOR USD 3-Month + 0.380%), 0.60%, 7/28/23(a) | 200,029 | ||||
275,000 | NextEra Energy Capital Holdings, Inc., 0.65%, 3/1/23 | 275,850 | ||||
550,000 | Sempra Energy, 2.90%, 2/1/23 | 572,291 | ||||
275,000 | Southern Co. (The), Series 21-A, 0.60%, 2/26/24 | 273,348 | ||||
350,000 | WEC Energy Group, Inc., 0.80%, 3/15/24 | 349,881 | ||||
|
| |||||
4,490,037 | ||||||
|
| |||||
Total Corporate Bonds | 45,705,296 | |||||
|
| |||||
(Cost $45,152,240) | ||||||
Asset Backed Securities — 26.98% | ||||||
160,000 | AmeriCredit Automobile Receivables Trust, Series 2018-1, Class C, 3.50%, 1/18/24 | 164,890 | ||||
240,000 | AmeriCredit Automobile Receivables Trust, Series 2019-1, Class D, 3.62%, 3/18/25 | 254,229 | ||||
508,000 | AmeriCredit Automobile Receivables Trust, Series 2019-2, Class B, 2.54%, 7/18/24 | 522,114 | ||||
125,000 | AmeriCredit Automobile Receivables Trust, Series 2019-2, Class C, 2.74%, 4/18/25 | 129,989 | ||||
300,000 | AmeriCredit Automobile Receivables Trust, Series 2019-3, Class B, 2.13%, 7/18/25 | 307,572 | ||||
455,000 | AmeriCredit Automobile Receivables Trust, Series 2019-3, Class D, 2.58%, 9/18/25 | 472,026 | ||||
315,000 | AmeriCredit Automobile Receivables Trust, Series 2021-1, Class D, 1.21%, 12/18/26 | 312,039 |
16
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Short Duration Fixed Income Fund (cont.)
|
March 31, 2021 |
Principal Amount | Value | |||||
$ 275,000 | Capital Auto Receivables Asset Trust, Series 2017-1, Class D, 3.15%, 2/20/25(b) | $ | 277,120 | |||
502,000 | CarMax Auto Owner Trust, Series 2017-3, Class D, 3.46%, 10/16/23 | 508,012 | ||||
420,000 | CarMax Auto Owner Trust, Series 2017-4, Class D, 3.30%, 5/15/24 | 427,209 | ||||
475,000 | CarMax Auto Owner Trust, Series 2018-1, Class D, 3.37%, 7/15/24 | 486,026 | ||||
305,000 | CarMax Auto Owner Trust, Series 2018-3, Class D, 3.91%, 1/15/25 | 317,793 | ||||
335,000 | CarMax Auto Owner Trust, Series 2019-1, Class C, 3.74%, 1/15/25 | 352,687 | ||||
625,000 | CarMax Auto Owner Trust, Series 2019-3, Class B, 2.50%, 4/15/25 | 651,195 | ||||
250,000 | CarMax Auto Owner Trust, Series 2019-3, Class C, 2.60%, 6/16/25 | 260,188 | ||||
310,000 | CarMax Auto Owner Trust, Series 2019-4, Class C, 2.60%, 9/15/25 | 322,032 | ||||
175,000 | CarMax Auto Owner Trust, Series 2020-1, Class C, 2.34%, 11/17/25 | 181,109 | ||||
400,000 | Dell Equipment Finance Trust, Series 2018-1, Class C, 3.53%, 6/22/23(b) | 401,445 | ||||
800,000 | Dell Equipment Finance Trust, Series 2018-2, Class C, 3.72%, 10/22/23(b) | 811,063 | ||||
175,000 | Dell Equipment Finance Trust, Series 2019-2, Class D, 2.48%, 4/22/25(b) | 177,936 | ||||
97,861 | Drive Auto Receivables Trust, Series 2016-CA, Class D, 4.18%, 3/15/24(b) | 98,246 | ||||
111,689 | Drive Auto Receivables Trust, Series 2017-AA, Class D, 4.16%, 5/15/24(b) | 112,383 | ||||
11,876 | Drive Auto Receivables Trust, Series 2018-3, Class C, 3.72%, 9/16/24 | 11,886 | ||||
750,000 | Drive Auto Receivables Trust, Series 2018-5, Class D, 4.30%, 4/15/26 | 782,236 | ||||
171,536 | Drive Auto Receivables Trust, Series 2019-1, Class C, 3.78%, 4/15/25 | 173,733 | ||||
1,100,000 | Drive Auto Receivables Trust, Series 2019-1, Class D, 4.09%, 6/15/26 | 1,146,973 | ||||
180,000 | Drive Auto Receivables Trust, Series 2019-3, Class C, 2.90%, 8/15/25 | 184,349 | ||||
175,000 | Drive Auto Receivables Trust, Series 2019-4, Class C, 2.51%, 11/17/25 | 178,216 | ||||
50,000 | Drive Auto Receivables Trust, Series 2019-4, Class D, 2.70%, 2/16/27 | 51,606 | ||||
175,000 | Drive Auto Receivables Trust, Series 2020-1, Class C, 2.36%, 3/16/26 | 178,673 | ||||
270,000 | Ford Credit Auto Lease Trust, Series 2019-A, Class B, 3.25%, 7/15/22 | 272,516 | ||||
300,000 | Ford Credit Auto Lease Trust, Series 2021-A, Class C, 0.78%, 9/15/25 | 299,727 |
17
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Short Duration Fixed Income Fund (cont.)
|
March 31, 2021 |
Principal Amount | Value | |||||
$200,000 | GM Financial Automobile Leasing Trust, Series 2019-1, Class D, 3.95%, 5/22/23 | $ | 202,903 | |||
180,000 | GM Financial Automobile Leasing Trust, Series 2019-3, Class C, 2.35%, 7/20/23 | 182,643 | ||||
575,000 | GM Financial Automobile Leasing Trust, Series 2020-1, Class C, 2.04%, 12/20/23 | 585,539 | ||||
370,000 | GM Financial Consumer Automobile Receivables Trust, Series 2019-2, Class B, 2.87%, 10/16/24 | 384,050 | ||||
410,000 | GM Financial Consumer Automobile Receivables Trust, Series 2019-3, Class B, 2.32%, 12/16/24 | 422,806 | ||||
120,000 | GM Financial Consumer Automobile Receivables Trust, Series 2019-3, Class C, 2.62%, 1/16/25 | 124,237 | ||||
80,000 | GM Financial Consumer Automobile Receivables Trust, Series 2020-1, Class B, 2.03%, 4/16/25 | 82,379 | ||||
60,000 | GM Financial Consumer Automobile Receivables Trust, Series 2020-1, Class C, 2.18%, 5/16/25 | 61,946 | ||||
325,000 | GM Financial Leasing Trust, Series 2021-1, Class D, 1.01%, 7/21/25 | 323,966 | ||||
119,181 | Santander Drive Auto Receivables Trust, Series 2017-1, Class D, 3.17%, 4/17/23 | 119,689 | ||||
175,000 | Santander Drive Auto Receivables Trust, Series 2018-1, Class D, 3.32%, 3/15/24 | 178,092 | ||||
119,999 | Santander Drive Auto Receivables Trust, Series 2018-3, Class C, 3.51%, 8/15/23 | 120,644 | ||||
100,000 | Santander Drive Auto Receivables Trust, Series 2018-3, Class D, 4.07%, 8/15/24 | 103,113 | ||||
145,000 | Santander Drive Auto Receivables Trust, Series 2019-1, Class C, 3.42%, 4/15/25 | 146,673 | ||||
300,000 | Santander Drive Auto Receivables Trust, Series 2019-2, Class C, 2.90%, 10/15/24 | 305,907 | ||||
80,000 | Santander Drive Auto Receivables Trust, Series 2019-3, Class D, 2.68%, 10/15/25 | 82,520 | ||||
400,000 | Santander Drive Auto Receivables Trust, Series 2021-1, Class D, 1.13%, 11/16/26 | 397,127 | ||||
500,000 | Santander Retail Auto Lease Trust, Series 2019-B, Class C, 2.77%, 8/21/23(b) | 512,781 | ||||
246,804 | Sunnova Helios II Issuer LLC, Series 2019-AA, Class A, 3.75%, 6/20/46(b) | 264,412 | ||||
815,000 | Sunrun Vulcan Issuer LLC, Series 2021-1A, Class A, 2.46%, 1/30/52(b) | 806,029 | ||||
310,000 | Tesla Auto Lease Trust, Series 2020-A, Class B, 1.18%, 1/22/24(b) | 311,814 | ||||
500,000 | Tesla Auto Lease Trust, Series 2021-A, Class D, 1.34%, 3/20/25(b) | 499,557 | ||||
100,000 | Verizon Owner Trust, Series 2018-A, Class C, 3.55%, 4/20/23 | 102,354 | ||||
275,000 | Verizon Owner Trust, Series 2019-C, Class B, 2.06%, 4/22/24 | 281,911 | ||||
|
| |||||
Total Asset Backed Securities | 17,430,310 | |||||
|
| |||||
(Cost $17,214,855) |
18
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Short Duration Fixed Income Fund (cont.)
|
March 31, 2021 |
Principal Amount | Value | |||||
U.S. Government Agency Backed Mortgages — 0.03% | ||||||
Fannie Mae — 0.01% | ||||||
$2,930 | Series 2001-70, Class OF, (LIBOR USD 1-Month + 0.950%), 1.06%, 10/25/31(a) | $ | 3,003 | |||
2,132 | Series 2009-87, Class FX, (LIBOR USD 1-Month + 0.750%), 0.86%, 11/25/39(a) | 2,170 | ||||
|
| |||||
5,173 | ||||||
|
| |||||
Freddie Mac — 0.02% | ||||||
2,121 | Series 2448, Class FT, (LIBOR USD 1-Month + 1.000%), 1.11%, 3/15/32(a) | 2,179 | ||||
2,276 | Series 2488, Class FQ, (LIBOR USD 1-Month + 1.000%), 1.11%, 3/15/32(a) | 2,336 | ||||
5,829 | Series 2627, Class MW, 5.00%, 6/15/23 | 6,038 | ||||
902 | Series 3770, Class FP, (LIBOR USD 1-Month + 0.500%), 0.61%, 11/15/40(a) | 908 | ||||
|
| |||||
11,461 | ||||||
|
| |||||
Total U.S. Government Agency Backed Mortgages | 16,634 | |||||
|
| |||||
(Cost $16,222) | ||||||
Shares | ||||||
Investment Company — 1.65% | ||||||
1,065,250 | U.S. Government Money Market Fund, RBC Institutional Class 1(d) | 1,065,250 | ||||
|
| |||||
Total Investment Company | 1,065,250 | |||||
|
| |||||
(Cost $1,065,250) | ||||||
Total Investments | $ | 64,217,490 | ||||
(Cost $63,448,567)(e) — 99.41% | ||||||
Other assets in excess of liabilities — 0.59% | 381,273 | |||||
|
| |||||
NET ASSETS — 100.00% | $ | 64,598,763 | ||||
|
| |||||
|
|
(a) | Floating rate note. Rate shown is as of report date. |
(b) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(c) | Security is a fix-to-float security, which carries a fixed coupon until a certain date, upon which it switches to a floating rate. Reference rate and spread are provided if the rate is currently floating. |
(d) | Affiliated investment. |
(e) | See Notes to Schedules of Portfolio Investments for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
19
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Short Duration Fixed Income Fund (cont.)
|
March 31, 2021 |
Abbreviations used are defined below:
LIBOR - London Interbank Offered Rate
MTN - Medium Term Note
REIT - Real Estate Investment Trust
See Notes to the Financial Statements.
20
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund
|
March 31, 2021 |
Principal Amount | Value | |||||
Corporate Bonds — 68.88% | ||||||
Basic Materials — 2.08% | ||||||
$ 600,000 | DuPont de Nemours, Inc., (LIBOR USD 3-Month + 1.110%), 1.30%, 11/15/23(a) | $ | 609,771 | |||
300,000 | DuPont de Nemours, Inc., 4.21%, 11/15/23 | 325,679 | ||||
300,000 | Nutrien Ltd., 3.15%, 10/1/22 | 309,489 | ||||
750,000 | Nutrition & Biosciences, Inc., 0.70%, 9/15/22(b) | 751,980 | ||||
|
| |||||
1,996,919 | ||||||
|
| |||||
Communications — 5.25% | ||||||
1,000,000 | AT&T, Inc., 0.90%, 3/25/24 | 1,000,822 | ||||
1,050,000 | Charter Communications Operating LLC / Charter Communications Operating Capital, 4.46%, 7/23/22 | 1,094,944 | ||||
1,000,000 | Charter Communications Operating LLC / Charter Communications Operating Capital, Series USD, 4.50%, 2/1/24 | 1,093,723 | ||||
150,000 | Comcast Corp., (LIBOR USD 3-Month + 0.630%), 0.87%, 4/15/24(a) | 151,565 | ||||
300,000 | Thomson Reuters Corp., 3.85%, 9/29/24 | 325,782 | ||||
825,000 | Verizon Communications, Inc., 0.75%, 3/22/24 | 825,951 | ||||
500,000 | Videotron Ltd., 5.38%, 6/15/24(b) | 547,421 | ||||
|
| |||||
5,040,208 | ||||||
|
| |||||
Consumer, Cyclical — 4.75% | ||||||
400,000 | 7-Eleven, Inc., 0.80%, 2/10/24(b) | 398,592 | ||||
250,000 | Alimentation Couche-Tard, Inc., 2.70%, 7/26/22(b) | 256,747 | ||||
600,000 | American Honda Finance Corp., (LIBOR USD 3-Month + 0.540%), MTN, 0.73%, 6/27/22(a) | 603,265 | ||||
650,000 | Daimler Finance North America LLC, 0.75%, 3/1/24(b) | 647,125 | ||||
500,000 | Ford Motor Credit Co. LLC, 3.66%, 9/8/24 | 515,704 | ||||
250,000 | General Motors Financial Co., Inc., 3.20%, 7/6/21 | 251,139 | ||||
250,000 | General Motors Financial Co., Inc., 3.55%, 4/9/21 | 250,086 | ||||
375,000 | General Motors Financial Co., Inc., 3.70%, 5/9/23 | 395,124 | ||||
250,000 | General Motors Financial Co., Inc., 4.15%, 6/19/23 | 267,278 | ||||
150,000 | Toyota Motor Credit Corp., MTN, 0.50%, 8/14/23 | 150,092 | ||||
500,000 | Volkswagen Group of America Finance LLC, 2.70%, 9/26/22(b) | 516,280 | ||||
300,000 | Volkswagen Group of America Finance LLC, 2.90%, 5/13/22(b) | 307,779 | ||||
|
| |||||
4,559,211 | ||||||
|
| |||||
Consumer, Non-cyclical — 8.22% | ||||||
1,000,000 | AbbVie, Inc., 3.25%, 10/1/22 | 1,033,717 | ||||
300,000 | AbbVie, Inc., 3.45%, 3/15/22 | 306,919 | ||||
500,000 | Amgen, Inc., 3.63%, 5/22/24 | 540,163 | ||||
125,000 | Becton Dickinson and Co., (LIBOR USD 3-Month + 1.030%), 1.21%, 6/6/22(a) | 126,167 | ||||
634,000 | Becton Dickinson and Co., 2.89%, 6/6/22 | 650,501 | ||||
750,000 | Becton Dickinson and Co., 3.36%, 6/6/24 | 804,321 | ||||
350,000 | Bristol-Myers Squibb Co., 0.54%, 11/13/23 | 350,131 | ||||
600,000 | Cigna Corp., (LIBOR USD 3-Month + 0.890%), 1.13%, 7/15/23(a) | 607,120 |
21
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund (cont.)
|
March 31, 2021 |
Principal Amount | Value | |||||
$ 35,000 | CVS Health Corp., 3.70%, 3/9/23 | $ | 37,125 | |||
350,000 | EMD Finance LLC, 2.95%, 3/19/22(b) | 357,082 | ||||
250,000 | Equifax, Inc., 3.60%, 8/15/21 | 252,884 | ||||
300,000 | Gilead Sciences, Inc., 0.75%, 9/29/23 | 300,334 | ||||
250,000 | HCA, Inc., 4.75%, 5/1/23 | 269,767 | ||||
250,000 | HCA, Inc., 5.88%, 5/1/23 | 271,991 | ||||
500,000 | Keurig Dr Pepper, Inc., 0.75%, 3/15/24 | 500,051 | ||||
750,000 | Shire Acquisitions Investments Ireland DAC, 2.88%, 9/23/23 | 788,741 | ||||
250,000 | Stryker Corp., 0.60%, 12/1/23 | 250,137 | ||||
250,000 | United Rentals North America, Inc., 5.88%, 9/15/26 | 262,098 | ||||
175,000 | Viatris, Inc., 1.13%, 6/22/22(b) | 176,018 | ||||
|
| |||||
7,885,267 | ||||||
|
| |||||
Energy — 7.33% | ||||||
250,000 | Cheniere Energy Partners LP, 5.63%, 10/1/26 | 261,567 | ||||
150,000 | ConocoPhillips Co., (LIBOR USD 3-Month + 0.900%), 1.10%, 5/15/22(a) | 151,053 | ||||
250,000 | Enbridge, Inc., 2.90%, 7/15/22 | 257,053 | ||||
550,000 | Enbridge, Inc., 4.00%, 10/1/23 | 589,791 | ||||
200,000 | Energy Transfer Operating LP, 3.60%, 2/1/23 | 208,317 | ||||
250,000 | Energy Transfer Operating LP, 5.20%, 2/1/22 | 256,488 | ||||
250,000 | Kinder Morgan Energy Partners LP, 4.15%, 2/1/24 | 271,271 | ||||
300,000 | Kinder Morgan Energy Partners LP, 5.00%, 10/1/21 | 303,225 | ||||
550,000 | Kinder Morgan, Inc., 5.63%, 11/15/23(b) | 611,068 | ||||
250,000 | MPLX LP, (LIBOR USD 3-Month + 1.100%), 1.29%, 9/9/22(a) | 250,112 | ||||
200,000 | ONEOK Partners LP, 3.38%, 10/1/22 | 206,609 | ||||
250,000 | ONEOK, Inc., 2.75%, 9/1/24 | 262,372 | ||||
250,000 | ONEOK, Inc., 4.25%, 2/1/22 | 255,538 | ||||
450,000 | Pioneer Natural Resources Co., 0.75%, 1/15/24 | 448,879 | ||||
250,000 | Plains All American Pipeline LP / PAA Finance Corp., 3.65%, 6/1/22 | 255,994 | ||||
300,000 | Spectra Energy Partners LP, 4.75%, 3/15/24 | 330,673 | ||||
300,000 | Williams Cos., Inc. (The), 3.35%, 8/15/22 | 308,980 | ||||
500,000 | Williams Cos., Inc. (The), 3.60%, 3/15/22 | 511,943 | ||||
300,000 | Williams Cos., Inc. (The), 4.00%, 11/15/21 | 303,750 | ||||
600,000 | Williams Cos., Inc. (The), 4.30%, 3/4/24 | 654,684 | ||||
300,000 | Williams Cos., Inc. (The), 4.50%, 11/15/23 | 326,954 | ||||
|
| |||||
7,026,321 | ||||||
|
| |||||
Financial — 26.54% | ||||||
1,252,000 | American Tower Corp., REIT, 5.00%, 2/15/24 | 1,396,703 | ||||
250,000 | Australia & New Zealand Banking Group Ltd., (LIBOR USD 3-Month + 0.710%), 0.89%, 5/19/22(a),(b) | 251,759 | ||||
300,000 | Bank of America Corp., MTN, 0.81%, 10/24/24(c) | 300,786 | ||||
1,250,000 | Bank of America Corp., (LIBOR USD 3-Month + 0.960%), GMTN, 1.18%, 7/23/24(a) | 1,267,768 | ||||
250,000 | Bank of America Corp., (LIBOR USD 3-Month + 0.790%), 3.00%, 12/20/23(c) | 260,130 |
22
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund (cont.)
|
March 31, 2021 |
Principal Amount | Value | |||||
$ 250,000 | Bank of Nova Scotia (The), (LIBOR USD 3-Month + 0.620%), 0.81%, 9/19/22(a) | $ | 251,889 | |||
200,000 | Bank of Nova Scotia (The), 1.63%, 5/1/23 | 205,133 | ||||
250,000 | Barclays Plc, 1.01%, 12/10/24(c) | 250,051 | ||||
250,000 | Barclays Plc, 3.20%, 8/10/21 | 252,463 | ||||
263,000 | Barclays Plc, 3.68%, 1/10/23 | 269,034 | ||||
250,000 | BNP Paribas SA, 2.95%, 5/23/22(b) | 256,963 | ||||
250,000 | BNP Paribas SA, 3.50%, 3/1/23(b) | 263,661 | ||||
350,000 | BNP Paribas SA, 3.80%, 1/10/24(b) | 376,876 | ||||
83,000 | Camden Property Trust, REIT, 4.88%, 6/15/23 | 89,363 | ||||
300,000 | Canadian Imperial Bank of Commerce, (LIBOR USD 3-Month + 0.660%), 0.84%, 9/13/23(a) | 303,511 | ||||
500,000 | Canadian Imperial Bank of Commerce, 3.10%, 4/2/24 | 532,870 | ||||
250,000 | Citigroup, Inc., (LIBOR USD 3-Month + 0.690%), 0.90%, 10/27/22(a) | 251,650 | ||||
200,000 | Citigroup, Inc., (LIBOR USD 3-Month + 0.950%), 1.17%, 7/24/23(a) | 201,686 | ||||
300,000 | Citigroup, Inc., (LIBOR USD 3-Month + 1.070%), 1.25%, 12/8/21(a) | 301,724 | ||||
1,000,000 | Citigroup, Inc., (LIBOR USD 3-Month + 0.950%), 2.88%, 7/24/23(c) | 1,029,693 | ||||
250,000 | Cooperatieve Rabobank UA, (LIBOR USD 3-Month + 0.480%), 0.71%, 1/10/23(a) | 251,419 | ||||
250,000 | Cooperatieve Rabobank UA, 3.95%, 11/9/22 | 263,210 | ||||
250,000 | Credit Agricole SA, 3.38%, 1/10/22(b) | 255,820 | ||||
250,000 | Credit Agricole SA, 3.75%, 4/24/23(b) | 265,731 | ||||
250,000 | Credit Suisse Group AG, 3.57%, 1/9/23(b) | 255,138 | ||||
500,000 | Credit Suisse Group Funding Guernsey Ltd., 3.80%, 9/15/22 | 521,233 | ||||
500,000 | Crown Castle International Corp., 3.20%, 9/1/24 | 536,214 | ||||
850,000 | Goldman Sachs Group, Inc. (The), Series VAR, Series VAR, 0.63%, 11/17/23(c) | 849,705 | ||||
500,000 | Goldman Sachs Group, Inc. (The), 0.67%, 3/8/24(c) | 499,337 | ||||
400,000 | Goldman Sachs Group, Inc. (The), (LIBOR USD 3-Month + 0.750%), 0.93%, 2/23/23(a) | 403,229 | ||||
250,000 | Goldman Sachs Group, Inc. (The), (LIBOR USD 3-Month + 0.990%), 2.91%, 7/24/23(c) | 257,403 | ||||
200,000 | Goldman Sachs Group, Inc. (The), 3.63%, 2/20/24 | 215,181 | ||||
225,000 | HSBC Holdings Plc, 3.60%, 5/25/23 | 239,413 | ||||
350,000 | HSBC Holdings Plc, 3.95%, 5/18/24(c) | 373,554 | ||||
200,000 | ING Groep NV, 3.15%, 3/29/22 | 205,552 | ||||
250,000 | ING Groep NV, 4.10%, 10/2/23 | 271,041 | ||||
250,000 | JPMorgan Chase & Co., 0.70%, 3/16/24(c) | 251,022 | ||||
1,000,000 | JPMorgan Chase & Co., (LIBOR USD 3-Month + 0.850%), GMTN, 1.08%, 1/10/25(a) | 1,013,698 | ||||
250,000 | JPMorgan Chase & Co., (LIBOR USD 3-Month + 0.900%), 1.12%, 4/25/23(a) | 251,861 | ||||
250,000 | JPMorgan Chase & Co., (LIBOR USD 3-Month + 0.730%), 3.56%, 4/23/24(c) | 264,953 | ||||
400,000 | Lloyds Banking Group Plc, 0.70%, 5/11/24(c) | 399,999 |
23
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund (cont.)
|
March 31, 2021 |
Principal Amount | Value | |||||
$ 350,000 | Lloyds Banking Group Plc, 2.86%, 3/17/23(c) | $ | 357,427 | |||
200,000 | Lloyds Banking Group Plc, (LIBOR USD 3-Month + 0.810%), 2.91%, 11/7/23(c) | 207,020 | ||||
250,000 | Lloyds Banking Group Plc, 3.00%, 1/11/22 | 254,976 | ||||
1,000,000 | Mid-America Apartments LP, 4.30%, 10/15/23 | 1,080,040 | ||||
300,000 | Morgan Stanley, MTN, 0.53%, 1/25/24(c) | 299,457 | ||||
200,000 | Morgan Stanley, (LIBOR USD 3-Month + 0.930%), 1.15%, 7/22/22(a) | 200,453 | ||||
250,000 | Morgan Stanley, (LIBOR USD 3-Month + 1.400%), MTN, 1.62%, 10/24/23(a) | 254,465 | ||||
250,000 | Morgan Stanley, MTN, 2.75%, 5/19/22 | 256,682 | ||||
500,000 | Nordea Bank Abp, 3.75%, 8/30/23(b) | 537,009 | ||||
1,000,000 | Regions Financial Corp., 3.80%, 8/14/23 | 1,073,053 | ||||
500,000 | Santander UK Group Holdings Plc, 3.37%, 1/5/24(c) | 522,678 | ||||
200,000 | Santander UK Group Holdings Plc, 3.57%, 1/10/23 | 204,471 | ||||
300,000 | Skandinaviska Enskilda Banken AB, (LIBOR USD 3-Month + 0.430%), 0.62%, 5/17/21(a),(b) | 300,159 | ||||
200,000 | Swedbank AB, (LIBOR USD 3-Month + 0.700%), 0.88%, 3/14/22(a),(b) | 201,086 | ||||
1,000,000 | Toronto-Dominion Bank (The), 0.55%, 3/4/24 | 998,563 | ||||
425,000 | UBS AG, 0.45%, 2/9/24(b) | 421,957 | ||||
250,000 | Westpac Banking Corp., (LIBOR USD 3-Month + 0.570%), 0.80%, 1/11/23(a) | 251,877 | ||||
150,000 | Westpac Banking Corp., (LIBOR USD 3-Month + 0.710%), 0.90%, 6/28/22(a) | 151,130 | ||||
355,000 | Westpac Banking Corp., 3.30%, 2/26/24 | 382,210 | ||||
1,250,000 | Willis North America, Inc., 3.60%, 5/15/24 | 1,347,570 | ||||
|
| |||||
25,460,709 | ||||||
|
| |||||
Industrial — 4.94% | ||||||
500,000 | Boeing Co. (The), 1.17%, 2/4/23 | 502,098 | ||||
250,000 | Boeing Co. (The), 1.43%, 2/4/24 | 250,392 | ||||
250,000 | Caterpillar Financial Services Corp., (LIBOR USD 3-Month + 0.200%), MTN, 0.40%, 11/12/21(a) | 250,155 | ||||
600,000 | John Deere Capital Corp., (LIBOR USD 3-Month + 0.490%), MTN, 0.67%, 6/13/22(a) | 602,991 | ||||
185,000 | L3Harris Technologies, Inc., 3.95%, 5/28/24 | 200,773 | ||||
500,000 | Raytheon Technologies Corp., 3.20%, 3/15/24 | 533,609 | ||||
325,000 | Roper Technologies, Inc., 0.45%, 8/15/22 | 324,876 | ||||
1,000,000 | Siemens Financieringsmaatschappij NV, 0.40%, 3/11/23(b) | 1,001,039 | ||||
250,000 | Siemens Financieringsmaatschappij NV, 0.65%, 3/11/24(b) | 249,902 | ||||
825,000 | Teledyne Technologies, Inc., 0.95%, 4/1/24 | 821,693 | ||||
|
| |||||
4,737,528 | ||||||
|
| |||||
Technology — 4.78% | ||||||
1,150,000 | Dell International LLC / EMC Corp., 5.45%, 6/15/23(b) | 1,256,800 | ||||
450,000 | Fidelity National Information Services, Inc., 0.60%, 3/1/24 | 447,547 | ||||
200,000 | Hewlett Packard Enterprise Co., (LIBOR USD 3-Month + 0.720%), 0.96%, 10/5/21(a) | 199,955 |
24
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund (cont.)
|
March 31, 2021 |
Principal Amount | Value | |||||
$ 1,000,000 | Leidos, Inc., 2.95%, 5/15/23(b) | $ | 1,045,399 | |||
275,000 | Microchip Technology, Inc., 0.97%, 2/15/24(b) | 274,595 | ||||
550,000 | NXP BV / NXP Funding LLC, 3.88%, 9/1/22(b) | 574,396 | ||||
500,000 | NXP BV / NXP Funding LLC / NXP USA, Inc., 2.70%, 5/1/25(b) | 524,475 | ||||
250,000 | Open Text Corp., 5.88%, 6/1/26(b) | 258,768 | ||||
|
| |||||
4,581,935 | ||||||
|
| |||||
Utilities — 4.99% | ||||||
425,000 | American Electric Power Co., Inc., Series M, 0.75%, 11/1/23 | 425,150 | ||||
301,000 | American Electric Power Co., Inc., Series I, 3.65%, 12/1/21 | 307,458 | ||||
300,000 | CenterPoint Energy Resources Corp., 0.70%, 3/2/23 | 300,024 | ||||
148,000 | CenterPoint Energy, Inc., 3.85%, 2/1/24 | 160,066 | ||||
510,000 | Consolidated Edison, Inc., Series A, 0.65%, 12/1/23 | 509,192 | ||||
300,000 | Evergy, Inc., 2.45%, 9/15/24 | 314,275 | ||||
375,000 | Florida Power & Light Co., (LIBOR USD 3-Month + 0.380%), 0.60%, 7/28/23(a) | 375,054 | ||||
350,000 | NextEra Energy Capital Holdings, Inc., 0.65%, 3/1/23 | 351,082 | ||||
500,000 | Sempra Energy, 2.90%, 2/1/23 | 520,264 | ||||
300,000 | Southern Co. (The), Series 21-A, 0.60%, 2/26/24 | 298,198 | ||||
150,000 | WEC Energy Group, Inc., 0.55%, 9/15/23 | 149,777 | ||||
675,000 | WEC Energy Group, Inc., 0.80%, 3/15/24 | 674,770 | ||||
400,000 | Xcel Energy, Inc., 0.50%, 10/15/23 | 400,055 | ||||
|
| |||||
4,785,365 | ||||||
|
| |||||
Total Corporate Bonds | 66,073,463 | |||||
|
| |||||
(Cost $65,869,718) | ||||||
Asset Backed Securities — 26.47% | ||||||
790,000 | Americredit Automobile Receivables Trust, Series 2018-3, Class D, 4.04%, 11/18/24 | 841,759 | ||||
100,000 | AmeriCredit Automobile Receivables Trust, 1.80%, 12/18/25 | 101,848 | ||||
160,000 | AmeriCredit Automobile Receivables Trust, Series 2019-1, Class D, 3.62%, 3/18/25 | 169,486 | ||||
175,000 | AmeriCredit Automobile Receivables Trust, Series 2019-3, Class B, 2.13%, 7/18/25 | 179,417 | ||||
300,000 | AmeriCredit Automobile Receivables Trust, Series 2019-3, Class D, 2.58%, 9/18/25 | 311,226 | ||||
390,000 | AmeriCredit Automobile Receivables Trust, Series 2021-1, Class D, 1.21%, 12/18/26 | 386,334 | ||||
40,195 | Capital Auto Receivables Asset Trust, Series 2017-1, Class B, 2.43%, 5/20/22(b) | 40,255 | ||||
405,000 | Capital Auto Receivables Asset Trust, Series 2018-2, Class C, 3.69%, 12/20/23(b) | 408,262 | ||||
185,000 | Carmax Auto Owner Trust, Series 2018-4, Class C, 3.85%, 7/15/24 | 194,423 | ||||
290,000 | Carmax Auto Owner Trust, Series 2018-4, Class D, 4.15%, 4/15/25 | 305,052 | ||||
145,000 | Carmax Auto Owner Trust, Series 2019-1, Class D, 4.04%, 8/15/25 | 152,525 |
25
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund (cont.)
|
March 31, 2021 |
Principal Amount | Value | |||||
$ 705,000 | Carmax Auto Owner Trust, Series 2019-3, Class D, 2.85%, 1/15/26 | $ | 733,418 | |||
250,000 | CarMax Auto Owner Trust, Series 2017-3, Class D, 3.46%, 10/16/23 | 252,994 | ||||
800,000 | CarMax Auto Owner Trust, Series 2017-4, Class D, 3.30%, 5/15/24 | 813,732 | ||||
350,000 | CarMax Auto Owner Trust, Series 2018-1, Class C, 2.95%, 11/15/23 | 358,068 | ||||
600,000 | CarMax Auto Owner Trust, Series 2018-1, Class D, 3.37%, 7/15/24 | 613,927 | ||||
200,000 | CarMax Auto Owner Trust, Series 2018-2, Class D, 3.99%, 4/15/25 | 206,829 | ||||
205,000 | CarMax Auto Owner Trust, Series 2018-3, Class D, 3.91%, 1/15/25 | 213,599 | ||||
300,000 | CarMax Auto Owner Trust, Series 2019-3, Class C, 2.60%, 6/16/25 | 312,225 | ||||
100,000 | CarMax Auto Owner Trust, Series 2019-4, Class C, 2.60%, 9/15/25 | 103,881 | ||||
125,000 | CarMax Auto Owner Trust, Series 2020-1, Class C, 2.34%, 11/17/25 | 129,364 | ||||
572,000 | CarMax Auto Owner Trust, Series 2020-2, Class D, 5.75%, 5/17/27 | 631,954 | ||||
1,000,000 | CarMax Auto Owner Trust, Series 2020-3, Class D, 2.53%, 1/15/27 | 1,030,477 | ||||
370,000 | Chrysler Capital Auto Receivables Trust, Series 2016-BA, Class D, 3.51%, 9/15/23(b) | 374,007 | ||||
293,815 | CNH Equipment Trust, Series 2019-A, Class A3, 3.01%, 4/15/24 | 299,425 | ||||
222,091 | Dell Equipment Finance Trust, Series 2018-1, Class B, 3.34%, 6/22/23(b) | 222,573 | ||||
300,000 | Dell Equipment Finance Trust, Series 2018-1, Class C, 3.53%, 6/22/23(b) | 301,084 | ||||
275,000 | Dell Equipment Finance Trust, Series 2018-2, Class B, 3.55%, 10/22/23(b) | 277,445 | ||||
650,000 | Dell Equipment Finance Trust, Series 2018-2, Class C, 3.72%, 10/22/23(b) | 658,989 | ||||
603,000 | Dell Equipment Finance Trust, Series 2019-1, Class B, 2.94%, 3/22/24(b) | 614,595 | ||||
150,000 | Drive Auto Receivables Trust, 3.69%, 8/17/26 | 156,726 | ||||
265,000 | Drive Auto Receivables Trust, 3.18%, 10/15/26 | 276,492 | ||||
53,329 | Drive Auto Receivables Trust, Series 2017-2, Class D, 3.49%, 9/15/23 | 53,823 | ||||
138,048 | Drive Auto Receivables Trust, Series 2017-AA, Class D, 4.16%, 5/15/24(b) | 138,905 | ||||
10,963 | Drive Auto Receivables Trust, Series 2018-3, Class C, 3.72%, 9/16/24 | 10,972 | ||||
191,000 | Drive Auto Receivables Trust, Series 2018-3, Class D, 4.30%, 9/16/24 | 196,217 | ||||
620,000 | Drive Auto Receivables Trust, Series 2018-5, Class D, 4.30%, 4/15/26 | 646,648 |
26
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund (cont.)
|
March 31, 2021 |
Principal Amount | Value | |||||
$ 192,978 | Drive Auto Receivables Trust, Series 2019-1, Class C, 3.78%, 4/15/25 | $ | 195,450 | |||
400,000 | Drive Auto Receivables Trust, Series 2019-1, Class D, 4.09%, 6/15/26 | 417,081 | ||||
130,000 | Drive Auto Receivables Trust, Series 2019-3, Class C, 2.90%, 8/15/25 | 133,141 | ||||
105,000 | Drive Auto Receivables Trust, Series 2019-4, Class C, 2.51%, 11/17/25 | 106,930 | ||||
265,000 | Drive Auto Receivables Trust, Series 2019-4, Class D, 2.70%, 2/16/27 | 273,513 | ||||
125,000 | Drive Auto Receivables Trust, Series 2020-1, Class C, 2.36%, 3/16/26 | 127,623 | ||||
500,000 | Ford Credit Auto Lease Trust, Series 2021-A, Class C, 0.78%, 9/15/25 | 499,545 | ||||
105,000 | GM Financial Automobile Leasing Trust, Series 2019-3, Class C, 2.35%, 7/20/23 | 106,542 | ||||
425,000 | GM Financial Automobile Leasing Trust, Series 2020-1, Class C, 2.04%, 12/20/23 | 432,790 | ||||
1,150,000 | GM Financial Automobile Leasing Trust, Series 2020-2, Class D, 3.21%, 12/20/24 | 1,203,669 | ||||
1,000,000 | GM Financial Automobile Leasing Trust, Series 2020-3, Class D, 1.71%, 2/20/25 | 1,017,705 | ||||
150,000 | GM Financial Consumer Automobile Receivables Trust, Series 2018-3, Class B, 3.27%, 1/16/24 | 154,306 | ||||
60,000 | GM Financial Consumer Automobile Receivables Trust, Series 2020-1, Class B, 2.03%, 4/16/25 | 61,784 | ||||
50,000 | GM Financial Consumer Automobile Receivables Trust, Series 2020-1, Class C, 2.18%, 5/16/25 | 51,622 | ||||
325,000 | GM Financial Leasing Trust, Series 2021-1, Class D, 1.01%, 7/21/25 | 323,966 | ||||
500,000 | Hyundai Auto Receivables Trust, Series 2019-A, Class C, 3.03%, 11/17/25 | 521,456 | ||||
420,000 | Santander Drive Auto Receivables Trust, 1.64%, 11/16/26 | 425,205 | ||||
105,688 | Santander Drive Auto Receivables Trust, Series 2017-1, Class D, 3.17%, 4/17/23 | 106,139 | ||||
315,000 | Santander Drive Auto Receivables Trust, Series 2018-2, Class D, 3.88%, 2/15/24 | 323,156 | ||||
865,000 | Santander Drive Auto Receivables Trust, Series 2018-3, Class D, 4.07%, 8/15/24 | 891,931 | ||||
160,000 | Santander Drive Auto Receivables Trust, Series 2019-1, Class C, 3.42%, 4/15/25 | 161,846 | ||||
100,000 | Santander Drive Auto Receivables Trust, Series 2019-1, Class D, 3.65%, 4/15/25 | 103,654 | ||||
400,000 | Santander Drive Auto Receivables Trust, Series 2019-2, Class D, 3.22%, 7/15/25 | 415,436 | ||||
160,000 | Santander Drive Auto Receivables Trust, Series 2019-3, Class D, 2.68%, 10/15/25 | 165,039 | ||||
450,000 | Santander Drive Auto Receivables Trust, Series 2021-1, Class D, 1.13%, 11/16/26 | 446,768 | ||||
450,000 | Santander Retail Auto Lease Trust, 2.08%, 3/20/24(b) | 461,214 |
27
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund (cont.)
|
March 31, 2021 |
Principal Amount | Value | |||||
$505,000 | Santander Retail Auto Lease Trust, Series 2019-A, Class B, 3.01%, 5/22/23(b) | $ | 514,864 | |||
300,000 | Santander Retail Auto Lease Trust, Series 2019-A, Class C, 3.30%, 5/22/23(b) | 306,659 | ||||
240,000 | Santander Retail Auto Lease Trust, Series 2019-B, Class C, 2.77%, 8/21/23(b) | 246,135 | ||||
500,000 | Santander Retail Auto Lease Trust, Series 2020-B, Class C, 1.18%, 12/20/24(b) | 502,295 | ||||
262,474 | Sunnova Helios II Issuer LLC, Series 2019-AA, Class A, 3.75%, 6/20/46(b) | 281,200 | ||||
100,000 | Tesla Auto Lease Trust, Series 2019-A, Class C, 2.68%, 1/20/23(b) | 102,509 | ||||
600,000 | Tesla Auto Lease Trust, Series 2021-A, Class D, 1.34%, 3/20/25(b) | 599,468 | ||||
500,000 | Verizon Owner Trust, Series 2018-1A, Class B, 3.05%, 9/20/22(b) | 503,001 | ||||
220,000 | Verizon Owner Trust, Series 2018-1A, Class C, 3.20%, 9/20/22(b) | 221,726 | ||||
170,000 | Verizon Owner Trust, Series 2019-C, Class B, 2.06%, 4/22/24 | 174,272 | ||||
88,504 | World Omni Automobile Lease Securitization Trust, Series 2019-B, Class A2A, 2.05%, 7/15/22 | 88,780 | ||||
|
| |||||
Total Asset Backed Securities | 25,387,376 | |||||
|
| |||||
(Cost $25,263,699) | ||||||
U.S. Government Agency Backed Mortgages — 0.01% | ||||||
Fannie Mae — 0.01% | ||||||
3,946 | Pool #888467, 6.00%, 6/1/22 | 3,998 | ||||
1 | Pool #AL0202, 4.00%, 4/1/21 | 1 | ||||
4,031 | Series 2003-55, Class CD, 5.00%, 6/25/23 | 4,151 | ||||
4,605 | Series 2012-1, Class GB, 2.00%, 2/25/22 | 4,623 | ||||
|
| |||||
12,773 | ||||||
|
| |||||
Total U.S. Government Agency Backed Mortgages | 12,773 | |||||
|
| |||||
(Cost $12,636) |
28
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund (cont.)
|
March 31, 2021 |
Shares | Value | |||||
Investment Company — 7.67% | ||||||
7,352,789 U.S. Government Money Market Fund, RBC Institutional Class 1(d) | $ | 7,352,789 | ||||
|
| |||||
Total Investment Company | 7,352,789 | |||||
|
| |||||
(Cost $7,352,789) | ||||||
Total Investments | $ | 98,826,401 | ||||
(Cost $98,498,842)(e) — 103.03% | ||||||
Liabilities in excess of other assets — (3.03)% | (2,906,164) | |||||
|
| |||||
NET ASSETS — 100.00% | $ | 95,920,237 | ||||
|
|
(a) | Floating rate note. Rate shown is as of report date. |
(b) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(c) | Security is a fix-to-float security, which carries a fixed coupon until a certain date, upon which it switches to a floating rate. Reference rate and spread are provided if the rate is currently floating. |
(d) | Affiliated investment. |
(e) | See Notes to Schedules of Portfolio Investments for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Financial futures contracts as of March 31, 2021:
Short Position | Number of Contracts | Expiration Date | Value/Unrealized Appreciation | Notional Value | Clearinghouse | |||||||||||||||||||
Five Year U.S. Treasury Note | 35 | June 2021 | $ | 52,468 | USD $ 4,318,945 | Barclays Capital Group | ||||||||||||||||||
Two Year U.S. Treasury Note | 75 | June 2021 | 14,063 | USD 16,554,492 | Barclays Capital Group | |||||||||||||||||||
|
| |||||||||||||||||||||||
Total | $ | 66,531 | ||||||||||||||||||||||
|
|
Abbreviations used are defined below:
GMTN - Global Medium Term Note
LIBOR - London Interbank Offered Rate
MTN - Medium Term Note
REIT - Real Estate Investment Trust
USD - United States Dollar
See Notes to the Financial Statements.
29
|
Statements of Assets and Liabilities
|
March 31, 2021 |
RBC Short Duration Fund | RBC Ultra-Short | |||||||||||||
Assets: | ||||||||||||||
Investments in securities, at value: | ||||||||||||||
Unaffiliated investments (cost $62,383,317 and $91,146,053, respectively) | $ | 63,152,240 | $ | 91,473,612 | ||||||||||
Affiliated investments (cost $1,065,250 and $7,352,789, respectively) | 1,065,250 | 7,352,789 | ||||||||||||
Cash at broker for financial futures contracts | 41,305 | 72,810 | ||||||||||||
Interest and dividend receivable | 331,069 | 404,673 | ||||||||||||
Receivable from advisor | 22,669 | 22,355 | ||||||||||||
Receivable for capital shares issued | — | 189,671 | ||||||||||||
Unrealized appreciation on futures contracts | — | 66,531 | ||||||||||||
Prepaid expenses and other assets | 19,582 | 28,836 | ||||||||||||
|
|
|
| |||||||||||
Total Assets | 64,632,115 | 99,611,277 | ||||||||||||
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||
Distributions payable | 910 | 5,657 | ||||||||||||
Payable for capital shares redeemed | 2,419 | 61,918 | ||||||||||||
Payable for investments purchased | — | 3,585,416 | ||||||||||||
Accrued expenses and other payables: | ||||||||||||||
Accounting fees | 4,593 | 4,717 | ||||||||||||
Audit fees | 2,132 | 2,132 | ||||||||||||
Trustees’ fees | 119 | 91 | ||||||||||||
Distribution fees | — | 650 | ||||||||||||
Custodian fees | 643 | 776 | ||||||||||||
Shareholder reports | 8,285 | 9,424 | ||||||||||||
Transfer agent fees | 6,357 | 13,340 | ||||||||||||
Other | 7,894 | 6,919 | ||||||||||||
|
|
|
| |||||||||||
Total Liabilities | 33,352 | 3,691,040 | ||||||||||||
|
|
|
| |||||||||||
Net Assets | $ | 64,598,763 | $ | 95,920,237 | ||||||||||
|
|
|
| |||||||||||
Net Assets Consists of: | ||||||||||||||
Capital | $ | 63,787,124 | $ | 95,770,128 | ||||||||||
Accumulated earnings | 811,639 | 150,109 | ||||||||||||
|
|
|
| |||||||||||
Net Assets | $ | 64,598,763 | $ | 95,920,237 | ||||||||||
|
|
|
|
30
FINANCIAL STATEMENTS
|
Statements of Assets and Liabilities (cont.)
|
March 31, 2021 |
RBC Short Duration Fixed Income Fund | RBC Ultra-Short Fixed Income Fund | |||||||||||||
Net Assets | ||||||||||||||
Class A | $ | 419,392 | $ | 16,172,898 | ||||||||||
Class I | 64,179,371 | 79,747,339 | ||||||||||||
|
|
|
| |||||||||||
Total | $ | 64,598,763 | $ | 95,920,237 | ||||||||||
|
|
|
| |||||||||||
Shares Outstanding (Unlimited number of shares authorized, no par value): | ||||||||||||||
Class A | 41,198 | 1,618,160 | ||||||||||||
Class I | 6,314,607 | 7,989,042 | ||||||||||||
|
|
|
| |||||||||||
Total | 6,355,805 | 9,607,202 | ||||||||||||
|
|
|
| |||||||||||
Net Asset Values and Redemption Prices Per Share: | ||||||||||||||
Class A | $ | 10.18 | $ | 9.99 | ||||||||||
|
|
|
| |||||||||||
Class I | $ | 10.16 | $ | 9.98 | ||||||||||
|
|
|
|
See Notes to the Financial Statements.
31
|
Statements of Operations
|
For the Year Ended March 31, 2021 |
RBC Short Duration Fixed Income Fund | RBC Ultra-Short Fund | |||||||||||||||
Investment Income: | ||||||||||||||||
Interest income | $ | 1,414,796 | $ | 925,894 | ||||||||||||
Dividend income - affiliated | 710 | 1,675 | ||||||||||||||
|
|
|
| |||||||||||||
Total Investment Income | 1,415,506 | 927,569 | ||||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 198,291 | 126,103 | ||||||||||||||
Distribution fees–Class A | 438 | 10,155 | ||||||||||||||
Accounting fees | 68,381 | 65,408 | ||||||||||||||
Audit fees | 39,939 | 39,940 | ||||||||||||||
Custodian fees | 2,786 | 3,241 | ||||||||||||||
Insurance fees | 3,757 | 3,757 | ||||||||||||||
Legal fees | 2,846 | 1,834 | ||||||||||||||
Registrations and filing fees | 53,243 | 68,228 | ||||||||||||||
Shareholder reports | 32,277 | 35,480 | ||||||||||||||
Transfer agent fees–Class A | 3,743 | 6,634 | ||||||||||||||
Transfer agent fees–Class I | 33,796 | 56,275 | ||||||||||||||
Trustees’ fees and expenses | 2,444 | 1,965 | ||||||||||||||
Tax expense | 4,110 | 4,110 | ||||||||||||||
Other fees | 4,637 | 4,526 | ||||||||||||||
|
|
|
| |||||||||||||
Total expenses before fee waiver/reimbursement | 450,688 | 427,656 | ||||||||||||||
Expenses waived/reimbursed by: | ||||||||||||||||
Advisor | (218,911 | ) | (263,984 | ) | ||||||||||||
|
|
|
| |||||||||||||
Net expenses | 231,777 | 163,672 | ||||||||||||||
|
|
|
| |||||||||||||
Net Investment Income | 1,183,729 | 763,897 | ||||||||||||||
|
|
|
| |||||||||||||
Realized/Unrealized Gains/(Losses): | ||||||||||||||||
Net realized gains/(losses) on: | ||||||||||||||||
Investment transactions | 482,219 | 317,845 | ||||||||||||||
Futures contracts | 23,608 | (82,261 | ) | |||||||||||||
|
|
|
| |||||||||||||
Net realized gains | 505,827 | 235,584 | ||||||||||||||
Net change in unrealized appreciation/(depreciation) on: | ||||||||||||||||
Investments | 2,064,597 | 1,472,903 | ||||||||||||||
Futures contracts | (1,673 | ) | 150,143 | |||||||||||||
|
|
|
| |||||||||||||
Net unrealized gains | 2,062,924 | 1,623,046 | ||||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from operations | $ | 3,752,480 | $ | 2,622,527 | ||||||||||||
|
|
|
|
See Notes to the Financial Statements.
32
|
Statements of Changes in Net Assets
|
RBC Short Duration Fixed Income Fund | ||||||||||||
For the Year Ended | For the Year Ended | |||||||||||
From Investment Activities | ||||||||||||
Operations: | ||||||||||||
Net investment income | $ | 1,183,729 | $ | 1,048,630 | ||||||||
Net realized gains/(losses) from investments and futures contracts | 505,827 | (270,595 | ) | |||||||||
Net change in unrealized appreciation/(depreciation) on investments and futures contracts | 2,062,924 | (1,370,390 | ) | |||||||||
|
|
|
| |||||||||
Change in net assets resulting from operations | 3,752,480 | (592,355 | ) | |||||||||
|
|
|
| |||||||||
Distributions to Shareholders: | ||||||||||||
Class A | (7,561 | ) | (7,644 | ) | ||||||||
Class I | (1,194,258 | ) | (1,044,931 | ) | ||||||||
|
|
|
| |||||||||
Change in net assets resulting from shareholder distributions | (1,201,819 | ) | (1,052,575 | ) | ||||||||
|
|
|
| |||||||||
Capital Transactions: | ||||||||||||
Proceeds from shares issued | 22,504,326 | 32,255,714 | ||||||||||
Distributions reinvested | 1,200,646 | 1,052,522 | ||||||||||
Cost of shares redeemed | (17,967,089 | ) | (3,226,315 | ) | ||||||||
|
|
|
| |||||||||
Change in net assets resulting from capital transactions | 5,737,883 | 30,081,921 | ||||||||||
|
|
|
| |||||||||
Net increase in net assets | 8,288,544 | 28,436,991 | ||||||||||
Net Assets: | ||||||||||||
Beginning of year | 56,310,219 | 27,873,228 | ||||||||||
|
|
|
| |||||||||
End of year | $ | 64,598,763 | $ | 56,310,219 | ||||||||
|
|
|
| |||||||||
Share Transactions: | ||||||||||||
Issued | 2,218,548 | 3,203,863 | ||||||||||
Reinvested | 118,243 | 104,939 | ||||||||||
Redeemed | (1,771,182 | ) | (322,035 | ) | ||||||||
|
|
|
| |||||||||
Change in shares resulting from capital transactions | 565,609 | 2,986,767 | ||||||||||
|
|
|
|
See Notes to the Financial Statements.
33
|
Statements of Changes in Net Assets
|
RBC Ultra-Short Fixed Income Fund | ||||||||||||||||
For the Year Ended March 31, 2021 | For the Year Ended March 31, 2020 | |||||||||||||||
From Investment Activities | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 763,897 | $ | 747,338 | ||||||||||||
Net realized gains/(losses) from investments and futures contracts | 235,584 | (302,168 | ) | |||||||||||||
Net change in unrealized appreciation/(depreciation) on investments, foreign currency and futures contracts | 1,623,046 | (1,283,059 | ) | |||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from operations | 2,622,527 | (837,889 | ) | |||||||||||||
|
|
|
| |||||||||||||
Distributions to Shareholders: | ||||||||||||||||
Class A | (135,540 | ) | (76,462 | ) | ||||||||||||
Class I | (647,315 | ) | (675,480 | ) | ||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from shareholder distributions | (782,855 | ) | (751,942 | ) | ||||||||||||
|
|
|
| |||||||||||||
Capital Transactions: | ||||||||||||||||
Proceeds from shares issued | 92,989,854 | 46,722,728 | ||||||||||||||
Distributions reinvested | 714,803 | 726,362 | ||||||||||||||
Cost of shares redeemed | (40,316,838 | ) | (37,143,145 | ) | ||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from capital transactions | 53,387,819 | 10,305,945 | ||||||||||||||
|
|
|
| |||||||||||||
Net increase in net assets | 55,227,491 | 8,716,114 | ||||||||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 40,692,746 | 31,976,632 | ||||||||||||||
|
|
|
| |||||||||||||
End of year | $ | 95,920,237 | $ | 40,692,746 | ||||||||||||
|
|
|
| |||||||||||||
Share Transactions: | ||||||||||||||||
Issued | 9,332,318 | 4,732,998 | ||||||||||||||
Reinvested | 71,887 | 73,432 | ||||||||||||||
Redeemed | (4,048,317 | ) | (3,793,334 | ) | ||||||||||||
|
|
|
| |||||||||||||
Change in shares resulting from capital transactions | 5,355,888 | 1,013,096 | ||||||||||||||
|
|
|
|
See Notes to the Financial Statements.
34
RBC Short Duration Fixed Income Fund
(Selected data for a share outstanding throughout the periods indicated) | ||||||||||||||||||||||||||||
Investment Activities | Distributions | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | Net Investment Income(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Total Distributions | Net Asset Value, End of Year | ||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended 3/31/21 | $9.98 | 0.17 | 0.21 | 0.38 | (0.18 | ) | (0.18 | ) | $10.18 | |||||||||||||||||||
Year Ended 3/31/20 | 9.94 | 0.25 | 0.04 | 0.29 | (0.25 | ) | (0.25 | ) | 9.98 | |||||||||||||||||||
Year Ended 3/31/19 | 9.85 | 0.24 | 0.09 | 0.33 | (0.24 | ) | (0.24 | ) | 9.94 | |||||||||||||||||||
Year Ended 3/31/18 | 9.97 | 0.20 | (0.12 | ) | 0.08 | (0.20 | ) | (0.20 | ) | 9.85 | ||||||||||||||||||
Year Ended 3/31/17 | 9.92 | 0.17 | 0.05 | 0.22 | (0.17 | ) | (0.17 | ) | 9.97 | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended 3/31/21 | $9.98 | 0.18 | 0.19 | 0.37 | (0.19 | ) | (0.19 | ) | $10.16 | |||||||||||||||||||
Year Ended 3/31/20 | 9.94 | 0.25 | 0.05 | 0.30 | (0.26 | ) | (0.26 | ) | 9.98 | |||||||||||||||||||
Year Ended 3/31/19 | 9.84 | 0.25 | 0.10 | 0.35 | (0.25 | ) | (0.25 | ) | 9.94 | |||||||||||||||||||
Year Ended 3/31/18 | 9.97 | 0.21 | (0.13 | ) | 0.08 | (0.21 | ) | (0.21 | ) | 9.84 | ||||||||||||||||||
Year Ended 3/31/17 | 9.92 | 0.18 | 0.05 | 0.23 | (0.18 | ) | (0.18 | ) | 9.97 |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
35
FINANCIAL HIGHLIGHTS
RBC Short Duration Fixed Income Fund
(Selected data for a share outstanding throughout the periods indicated) | ||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Total Return(a) | Net Assets, End of Year (000’s) | Ratio of Net Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Ratio of Expenses to Average Net Assets* | Portfolio Turnover Rate** | |||||||||||||||||||
Class A | ||||||||||||||||||||||||
Year Ended 3/31/21 | 6.45% | $ 419 | 0.45% | 1.70% | 1.58% | 54% | ||||||||||||||||||
Year Ended 3/31/20 | 0.34% | 294 | 0.45% | 2.48% | 2.07% | 33% | ||||||||||||||||||
Year Ended 3/31/19 | 3.44% | 310 | 0.45% | 2.41% | 1.99% | 48% | ||||||||||||||||||
Year Ended 3/31/18 | 0.78% | 526 | 0.45% | 1.98% | 1.71% | 55% | ||||||||||||||||||
Year Ended 3/31/17 | 2.23% | 666 | 0.45% | 1.69% | 1.53% | 37% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
Year Ended 3/31/21 | 6.35% | $64,179 | 0.35% | 1.79% | 0.68% | 54% | ||||||||||||||||||
Year Ended 3/31/20 | 0.45% | 56,016 | 0.35% | 2.53% | 0.79% | 33% | ||||||||||||||||||
Year Ended 3/31/19 | 3.65% | 27,563 | 0.35% | 2.55% | 1.04% | 48% | ||||||||||||||||||
Year Ended 3/31/18 | 0.78% | 25,482 | 0.35% | 2.10% | 0.99% | 55% | ||||||||||||||||||
Year Ended 3/31/17 | 2.33% | 18,366 | 0.35% | 1.78% | 1.12% | 37% |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
See Notes to the Financial Statements.
36
FINANCIAL HIGHLIGHTS
RBC Ultra-Short Fixed Income Fund
(Selected data for a share outstanding throughout the periods indicated) | ||||||||||||||||||||||||||||
Investment Activities | Distributions | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Year | Net Investment Income(a) | Net Realized and Unrealized Gains (Losses) on Investments | Total from Investment Activities | Net Investment Income | Total Distributions | Net Asset Value, End of Year | ||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
Year Ended 3/31/21 | $9.58 | 0.13 | 0.42 | 0.55 | (0.14 | ) | (0.14 | ) | $9.99 | |||||||||||||||||||
Year Ended 3/31/20 | 9.89 | 0.23 | (0.29 | ) | (0.06 | ) | (0.25 | ) | (0.25 | ) | 9.58 | |||||||||||||||||
Year Ended 3/31/19 | 9.84 | 0.24 | 0.06 | 0.30 | (0.25 | ) | (0.25 | ) | 9.89 | |||||||||||||||||||
Year Ended 3/31/18 | 9.90 | 0.18 | (0.06 | ) | 0.12 | (0.18 | ) | (0.18 | ) | 9.84 | ||||||||||||||||||
Year Ended 3/31/17 | 9.87 | 0.14 | 0.04 | 0.18 | (0.15 | ) | (0.15 | ) | 9.90 | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Year Ended 3/31/21 | $9.57 | 0.14 | 0.42 | 0.56 | (0.15 | ) | (0.15 | ) | $9.98 | |||||||||||||||||||
Year Ended 3/31/20 | 9.87 | 0.25 | (0.29 | ) | (0.04 | ) | (0.26 | ) | (0.26 | ) | 9.57 | |||||||||||||||||
Year Ended 3/31/19 | 9.83 | 0.25 | 0.04 | 0.29 | (0.25 | ) | (0.25 | ) | 9.87 | |||||||||||||||||||
Year Ended 3/31/18 | 9.88 | 0.19 | (0.05 | ) | 0.14 | (0.19 | ) | (0.19 | ) | 9.83 | ||||||||||||||||||
Year Ended 3/31/17 | 9.87 | 0.15 | 0.02 | 0.17 | (0.16 | ) | (0.16 | ) | 9.88 |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
37
FINANCIAL HIGHLIGHTS
RBC Ultra-Short Fixed Income Fund
(Selected data for a share outstanding throughout the periods indicated) | ||||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Total Return(a) | Net Assets, End of Year (000’s) | Ratio of Net Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Ratio of Expenses to Average Net Assets* | Portfolio Turnover Rate** | |||||||||||||||||||
Class A | ||||||||||||||||||||||||
Year Ended 3/31/21 | 5.78% | $16,173 | 0.38% | 1.30% | 0.81% | 56% | ||||||||||||||||||
Year Ended 3/31/20 | (0.67)% | 5,745 | 0.38% | 2.34% | 1.07% | 93% | ||||||||||||||||||
Year Ended 3/31/19 | 3.04% | 1,728 | 0.38% | 2.41% | 1.30% | 57% | ||||||||||||||||||
Year Ended 3/31/18 | 1.21% | 1,978 | 0.39%(b) | 1.83% | 1.54% | 68% | ||||||||||||||||||
Year Ended 3/31/17 | 1.84% | 667 | 0.40% | 1.41% | 1.30% | 52% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
Year Ended 3/31/21 | 5.89% | $79,747 | 0.28% | 1.42% | 0.77% | 56% | ||||||||||||||||||
Year Ended 3/31/20 | (0.47)% | 34,948 | 0.28% | 2.56% | 0.99% | 93% | ||||||||||||||||||
Year Ended 3/31/19 | 3.04% | 30,249 | 0.28% | 2.57% | 1.07% | 57% | ||||||||||||||||||
Year Ended 3/31/18 | 1.42% | 21,577 | 0.29%(b) | 1.89% | 1.08% | 68% | ||||||||||||||||||
Year Ended 3/31/17 | 1.74% | 14,011 | 0.30% | 1.47% | 1.14% | 52% |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
(b) | Beginning October 2, 2017, the net operating expenses were contractually limited to 0.38% and 0.28% of average daily net assets for Class A and Class I, respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended March 31, 2018. |
See Notes to the Financial Statements.
38
March 31, 2021
1. Organization:
RBC Funds Trust (the “Trust”) is registered under the Investment Company Act of 1940 (as amended) as an open-end management investment company. The Trust was organized as a Delaware statutory trust on December 16, 2003 and currently consists of 18 portfolios. Overall responsibility for the management of the Trust is vested in its Board of Trustees (the “Board”). This report includes the following two investment portfolios (each a “Fund” and collectively, the “Funds”):
- RBC Short Duration Fixed Income Fund (“Short Duration Fixed Income Fund”)
- RBC Ultra-Short Fixed Income Fund (“Ultra-Short Fixed Income Fund”)
The Funds offer Class A (formerly Class F) and Class I shares. Class A and Class I shares (intended for investors meeting certain investment minimum thresholds) are not subject to either a front-end sales charge or a contingent deferred sales charge.
RBC Global Asset Management (U.S.) Inc. (“RBC GAM-US” or “Advisor” or “Co-Administrator”) acts as the investment advisor for the Funds. The officers of the Trust (“Fund Management”) are also employees of RBC GAM-US.
2. Significant Accounting Policies
Each Fund is an investment company that follows accounting and reporting guidance under the Financial Accounting Standards Board. Summarized below are the significant accounting policies of the Funds. These policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). Fund Management follows these policies when preparing financial statements. Fund Management may also be required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The financial statements are as of the close of regular trading on the New York Stock Exchange (“NYSE”).
Security Valuation:
The Trust’s Board of Trustees (the ”Board“) has adopted pricing and valuation procedures for determining the fair value of each Fund’s investments. Fair value of a security is considered to be the price that a fund might reasonably expect to receive upon its current sale in an orderly transaction between market participants.
Fixed income securities, including to-be-announced (“TBA”) commitments and municipal bonds, are generally valued based on evaluated prices received from third-party pricing services or from broker-dealers who make markets in the securities and are generally categorized as Level 2 in the fair value hierarchy (see “Fair Value Measurements” below for additional information). The pricing services utilize both dealer-supplied valuations and electronic data processing techniques that take into account multiple appropriate factors such as institutional-size trading in similar groups of securities, market spreads, interest rates, and fundamental security analytical data including yield, quality, coupon rate, maturity and type of issue.
Mortgage-related securities represent direct or indirect participation in, or are secured by and payable from, mortgage loans secured by real property and include pass-through securities and collateralized mortgage obligations. These securities may be issued or guaranteed by U.S. Government agencies or instrumentalities, or private issuers, including commercial banks, savings and loan institutions, private mortgage insurance bankers and other secondary market issuers. These mortgage-related securities are generally valued by pricing services that use broker-dealer quotations or valuation estimates from their internal pricing models. These pricing models generally consider such factors as current market data, estimated cash flows, market-based yield spreads, and estimated prepayment rates. Securities valued using such techniques and inputs are generally categorized as Level 2 in the fair value hierarchy. To the extent significant inputs are unobservable, the securities will be categorized as Level 3.
39
NOTES TO FINANCIAL STATEMENTS
Exchange-traded futures are valued at the last sale price at the close of the market on the principal exchange on which they are traded and are categorized as Level 1 in the fair value hierarchy. Investments in open-end investment companies (mutual funds) are valued at net asset value and are categorized as Level 1 in the fair value hierarchy.
The Board has delegated to the Funds’ Pricing Committee (“Pricing Committee”) the responsibility for implementing the pricing and valuation procedures, including responsibility for determining the fair value of the Funds’ securities or other assets and liabilities. The Pricing Committee includes representatives of the Funds’ Advisor, and Co-Administrator, including personnel from accounting and operations, investment management, trading, risk management and compliance. The Pricing Committee meets at least quarterly to review and approve Fund valuation matters, including a review of the Funds’ pricing activity and operations, fair value measurements, pricing vendors, policies and procedures, and related controls. At least a quorum of the Pricing Committee shall meet more frequently, as needed, to consider and approve time-sensitive fair valuation matters. The Pricing Committee reports to the Valuation, Portfolio Management and Performance Committee (“Valuation Committee”) of the Board. Members of the Pricing Committee meet with the Valuation Committee and the Board at each of their regularly scheduled meetings to discuss valuation matters and actions taken during the period.
The Board has adopted procedures to determine the fair value of a security when a price is not available from a pricing service or broker- dealer or Fund Management determines that a price provided by a pricing service or broker-dealer does not approximate fair value. Fair valuation may also be used when a significant valuation event affecting the value of a security or market sector is determined to have occurred between the time when a security’s market closes and the time the Fund’s net asset value is calculated. The fair value of the security will be determined in good faith by the Pricing Committee in accordance with procedures and methodologies adopted by the Board. General factors used in determining the fair value of securities include, but are not limited to, fundamental analytical data relating to the security, the issuer and the market, such as duration, prepayment and default rates; general level of interest rates and changes in interest rates; information from broker-dealers; trading in similar securities; any restrictions on disposition of the security; and an evaluation of the forces that influence the market in which the investments are traded. These securities are either categorized as Level 2 or 3 in the fair value hierarchy, depending on the relevant inputs used.
When the Funds utilize fair valuation methods that use significant unobservable inputs to determine a security’s value, such securities will be categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. While the Funds’ policy is intended to result in a calculation of a Fund’s net asset value that fairly reflects security values as of the time of pricing, the Funds cannot guarantee that values determined by the Board or persons acting at their direction would accurately reflect the price that the Funds could obtain for a security if they were to dispose of it as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Funds may differ from the value that would be realized if the securities were sold.
The Funds’ Pricing Committee employs various methods for calibrating the valuation approach related to securities categorized within Level 2 and Level 3 of the fair value hierarchy. These methods may include regular due diligence of the Funds’ pricing vendors, a regular review of key inputs and assumptions, transaction back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing and stale prices and large movements in market value, and reviews of any market related activities. Additionally, the pricing of all fair value holdings is subsequently reported to the Valuation Committee and Board.
Fair Value Measurements:
The Funds disclose the fair value of their investments in a hierarchy that categorizes investments based on the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows:
• Level 1 - Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access at the measurement date.
40
NOTES TO FINANCIAL STATEMENTS
• Level 2 - Significant inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active. Observable inputs may include quoted prices for similar securities, interest rates, spreads, prepayment spreads, etc.
• Level 3 - Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those securities.
Inputs used in determining fair value of an investment may include, but are not limited to, price information, volatility statistics, credit and market data, and other factors, all of which may be either observable or unobservable. Inputs can vary among investments and will be impacted by the investment type and volume of activity for the particular security or similar securities in the market. Investments in the Level 3 category are generally supported by transactions and quoted prices from dealers participating in the market for those investments. Investments may be included in the Level 3 category due to a lack of market activity or transparency. Internal valuation models may also be used as a pricing source for Level 3 investments. Internal valuation models may rely on one or more unobservable inputs, such as estimated cash flows, financial statement analysis and discount rates.
The summary of inputs used to determine the fair value of the Funds’ investments as of March 31, 2021 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Total | |||||||||||||||||||||||||||||||||||||
Short Duration Fixed Income Fund | ||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||||||||||||||||||||
Corporate Bonds | $ | — | $ | 45,705,296 | $ | — | $ | 45,705,296 | ||||||||||||||||||||||||||||||||
U.S. Government Agency Backed Mortgages | — | 16,634 | — | 16,634 | ||||||||||||||||||||||||||||||||||||
Asset Backed Securities | — | 17,430,310 | — | 17,430,310 | ||||||||||||||||||||||||||||||||||||
Investment Company | 1,065,250 | — | — | 1,065,250 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Total Assets | $ | 1,065,250 | $ | 63,152,240 | $ | — | $ | 64,217,490 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Total | |||||||||||||||||||||||||||||||||||||
Ultra-Short Fixed Income Fund | ||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||||||||||||||||||||
Corporate Bonds | $ | — | $ | 66,073,463 | $ | — | $ | 66,073,463 | ||||||||||||||||||||||||||||||||
U.S. Government Agency Backed Mortgages | — | 12,773 | — | 12,773 | ||||||||||||||||||||||||||||||||||||
Asset Backed Securities | — | 25,387,376 | — | 25,387,376 | ||||||||||||||||||||||||||||||||||||
Investment Company | 7,352,789 | — | — | 7,352,789 | ||||||||||||||||||||||||||||||||||||
Other Financial Instruments* | ||||||||||||||||||||||||||||||||||||||||
Financial futures contracts | 66,531 | — | — | 66,531 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Total Assets | $ | 7,419,320 | $ | 91,473,612 | $ | — | $ | 98,892,932 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
* Other financial instruments are instruments shown on the Schedule of Portfolio Investments, such as futures contracts which are valued at fair value.
TBA Commitments:
The Funds may enter into TBA commitments to purchase or sell securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased/sold declines/increases prior to settlement date, which is in addition to the
41
NOTES TO FINANCIAL STATEMENTS
risk of decline in the value of a Fund’s other assets. Unsettled TBA commitments are valued at the current value of the underlying securities, according to the procedures described under “Security Valuation”. As of March 31, 2021, the Funds do not have any outstanding TBA commitments.
Derivatives:
The Funds may use derivative instruments, including futures, forwards, options, indexed securities, swaps and inverse securities for hedging purposes only. Derivatives allow the Funds to manage their risk exposure more quickly and efficiently than other types of instruments. Derivatives may be riskier than other types of investments and could result in losses that significantly exceed a Fund’s original investment. Derivatives are subject to the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index. The use of derivatives may not be successful, resulting in losses to a Fund, and the cost of such strategies may reduce the Fund’s returns. Hedging also involves the risk that changes in the value of the derivative will not match those of the holdings being hedged as expected by the Funds, in which case any losses on the holdings being hedged may not be reduced and may be increased. There can be no assurance that a Fund’s hedging strategy will reduce risk or that hedging transactions will be available or cost effective. The Funds are subject to interest rate risk in the normal course of pursuing their investment objectives by investing in various derivative financial instruments, as described below.
Financial Futures Contracts:
The Funds entered into futures contracts in an effort to manage the duration of the portfolio and hedge against certain market risk. A futures contract on a securities index is an agreement obligating one party to pay, and entitling the other party to receive, during the term of the contract, cash payments based on the level of a specified securities index. Futures transactions involve brokerage costs and require a Fund to segregate assets to cover contracts that would require it to purchase securities or currencies. A Fund may lose the expected benefit of futures transactions if interest rates, exchange rates or securities prices change in an unanticipated manner. Such unanticipated changes may also result in lower overall performance than if a Fund had not entered into any futures transactions.
The Funds entered into U.S. Treasury Notes futures during the year ended March 31, 2021.
Upon entering into a futures contract, a Fund is required to pledge to the broker an amount of cash, U.S. government securities, or other assets equal to a certain percentage of the contract amount. Subsequent payments are made or received by the Funds each day, depending on the daily fluctuations in the fair value of the underlying instrument. A Fund would record an unrealized gain or loss each day equal to these daily payments.
Open futures contracts are shown on the Schedules of Portfolio Investments. Underlying collateral pledged for open futures contracts is the cash at brokers for financial futures contracts shown on the Statements of Assets and Liabilities at March 31, 2021.
Fair Values of Derivative Financial Instrument as of March 31, 2021 | ||||||||||||||||
Statement of Assets and Liabilities Location | ||||||||||||||||
Asset Derivatives | ||||||||||||||||
Short Duration Fixed Income Fund | Ultra-Short Fixed Income Fund | |||||||||||||||
Interest Rate Risk: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | — | $ | 66,531 | ||||||||||||
|
|
|
| |||||||||||||
Total | $ | — | $ | 66,531 | ||||||||||||
|
|
|
|
42
NOTES TO FINANCIAL STATEMENTS
Liability Derivatives | ||||||||||||||||
Short Duration Fixed Income Fund | Ultra-Short Fixed Income Fund | |||||||||||||||
Total | $ | — | $ | — | ||||||||||||
|
|
|
|
The effect of derivative instruments on the Statement of Operations during the year ended March 31, 2021 is as follows:
| ||||||||||||||||
Derivative Instruments Categorized by Risk Exposure | Short Duration Fixed Income Fund | Ultra-Short Fixed Income Fund | ||||||||||||||
Net realized Gain/(Loss) From: | ||||||||||||||||
Interest Rate Risk: | ||||||||||||||||
Financial futures contracts | $ | 23,608 | $ | (82,261 | ) | |||||||||||
|
|
|
| |||||||||||||
Total | $ | 23,608 | $ | (82,261 | ) | |||||||||||
|
|
|
| |||||||||||||
Derivative Instruments Categorized by Risk Exposure | Short Duration Fixed Income Fund | Ultra-Short Fixed Income Fund | ||||||||||||||
Net Change in Unrealized Appreciation/(Depreciation) From: | ||||||||||||||||
Interest Rate Risk: | ||||||||||||||||
Financial futures contracts | $ | (1,673 | ) | $ | 150,143 | |||||||||||
|
|
|
| |||||||||||||
Total | $ | (1,673 | ) | $ | 150,143 | |||||||||||
|
|
|
| |||||||||||||
For the year ended March 31, 2021, the average volume of derivative activities based on ending quarterly outstanding amounts are as follows:
| ||||||||||||||||
Short Duration Fixed Income Fund | Ultra-Short Fixed Income Fund | |||||||||||||||
Futures long position (contracts) | 46 | — | ||||||||||||||
Futures short position (contracts) | 15 | 50 |
Counterparty Credit Risk:
Derivatives may also expose a Fund to counterparty risk (the risk that the derivative counterparty will not fulfill its contractual obligations). To the extent amounts due to the Funds from their counterparties are not fully collateralized contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. A Fund’s maximum risk of loss from counterparty credit risk on over-the-counter (“OTC”) derivatives is generally the aggregate unrealized gain in excess of any collateral pledged by the counterparty to the Funds.
With exchange-traded futures, the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Funds do not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency) of the clearing broker or clearinghouse. Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate
43
NOTES TO FINANCIAL STATEMENTS
amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
Affiliated Investments:
The Funds invest in another Fund of the Trust (an “Affiliated Fund”), U.S. Government Money Market Fund-RBC Institutional Class 1, as a cash sweep vehicle. The income earned by the Funds from the Affiliated Fund for the period is disclosed in the Statement of Operations. The table below details the transactions of the Funds in the Affiliated Fund.
Value March 31, 2020 | Purchases | Sales | Value March 31, 2021 | Dividends | ||||||||||||||||
Investments in U.S. Government Money Market Fund —RBC Institutional Class 1 | ||||||||||||||||||||
Short Duration Fixed Income Fund | $2,087,167 | $ | 35,495,514 | $ | (36,517,431 | ) | $1,065,250 | $ 710 | ||||||||||||
Ultra-Short Fixed Income Fund | 6,371,232 | 87,706,009 | (86,724,452 | ) | 7,352,789 | 1,675 |
Credit Enhancement:
Certain obligations held by the Funds have credit enhancement or liquidity features that may, under certain circumstances, provide for repayment of principal and interest on the obligation upon demand date, interest rate reset date or final maturity. These enhancements may include: letters of credit; liquidity guarantees; security purchase agreements; tender option purchase agreements and third party insurance.
Investment Transactions and Income:
Investment transactions are recorded on trade date. Dividend income is recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Realized gains and losses from investment transactions are calculated based on the cost of the specific security (also known as identified cost basis). Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount using the effective yield method. Paydown gains and losses on mortgage- and asset-backed securities are included in the financial statements as interest income.
Expense, Investment Income and Gain/Loss Allocation:
Each Fund pays the expenses that are directly related to its operations, such as custodian fees or advisory fees. Expenses incurred by the Trust, such as trustee or legal fees, are allocated among each of the Funds in the Trust either proportionately based upon each Fund’s relative net assets or using another reasonable basis such as equally across all Funds in the Trust, depending on the nature of the expense. Individual share classes within a Fund are charged expenses specific to that class, such as distribution fees and transfer agent fees. Within a Fund, expenses other than class specific expenses are allocated daily to each class based upon the proportion of relative net assets. Investment income and realized and unrealized gains or losses are allocated to each class of shares based on relative net assets.
Distributions to Shareholders:
The Funds pay out any income that it receives, less expenses, in the form of dividends and capital gains to its shareholders. Income dividends are declared daily and paid monthly. Capital gain distributions are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions are calculated based on federal income tax regulations, which may differ from US GAAP. These ”book/tax“ differences may be either temporary or permanent in nature. To the extent these differences are determined, as of the end of the tax year, to be permanent (e.g., reclassification of paydown gains and losses), they are reclassified within a Fund’s capital account based on their federal tax basis treatment.
44
NOTES TO FINANCIAL STATEMENTS
3. Agreements and Other Transactions with Affiliates:
The Trust has entered into an investment advisory agreement with RBC GAM-US under which RBC GAM-US manages each Funds’ assets and furnishes related office facilities, equipment, research and personnel. The agreement requires each Fund to pay RBC GAM-US a monthly fee based upon average daily net assets. Under the terms of the agreement, RBC GAM-US is entitled to receive fees based on a percentage of the average daily net assets of each of the Funds as follows:
Annual Rate | ||||
Short Duration Fixed Income Fund | 0.30% | |||
Ultra-Short Fixed Income Fund | 0.23% |
RBC GAM-US has contractually agreed to waive fees and/or make payments in order to keep total operating expenses (excluding certain fees such as interest, taxes and acquired fund fees and expenses) of Class A and Class I shares of each Fund to the following levels. This expense limitation agreement is in place until July 31, 2022.
Class A Annual Rate | Class I Annual Rate | |||||||
Short Duration Fixed Income Fund | 0.45% | 0.35% | ||||||
Ultra-Short Fixed Income Fund | 0.38% | 0.28% |
The Advisor is entitled to recoup from the Fund or class the fees and/or operating expenses waived or reimbursed during any of the previous 3 years, provided the Fund is able to do so and remain in compliance with the expense limitation in place at the time the fees were waived or expenses paid. The amounts subject to possible recoupment under the expense limitation agreement as of March 31, 2021 were:
FYE 3/31/19 | FYE 3/31/20 | FYE 3/31/21 | Total | |||||||||||||
Short Duration Fixed Income Fund | $178,075 | $184,217 | $217,611 | $579,903 | ||||||||||||
Ultra-Short Fixed Income Fund | 199,362 | 206,451 | 260,145 | 665,958 |
RBC GAM-US voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to RBC GAM-US indirectly through its investment in an affiliated money market fund. These waivers are voluntary and not subject to recoupment. These amounts are included in expenses waived/reimbursed by Advisor in the Statements of Operations. For the year ended March 31, 2021, the amounts waived were as follows:
Fees Waived | ||||
Short Duration Fixed Income Fund | $1,300 | |||
Ultra-Short Fixed Income Fund | 3,839 |
RBC GAM-US serves as co-administrator to the Funds. BNY Mellon Investment Servicing (US) Inc. (”BNY Mellon“) serves as co-administrator and fund accounting agent. Services provided under the administrative services contract include providing day-to-day administration of matters related to the Funds, maintenance of their records and the preparation of reports. Under the terms of the administrative services contract, RBC GAM-US does not receive a fee for its role as co-administrator. BNY Mellon receives a fee for its services payable by the Funds based in part on the Funds’ average net assets. BNY Mellon’s fee is included with “Accounting fees” in the Statements of Operations.
Certain Officers and Trustees of the Trust are affiliated with the Advisor. Such Officers and Trustees receive no compensation from the Funds for serving in their respective roles.
The Trust currently pays each of the independent trustees (trustees of the Trust who are not directors, officers or employees of the Advisor, either Co-Administrator or Distributor) an annual retainer of $68,000. The Board Chairperson and Audit Committee Chairperson each receive an additional retainer
45
NOTES TO FINANCIAL STATEMENTS
of $2,500 annually, and all other trustees serving as Chair of a Board committee each receive an additional retainer of $1,000 annually. In addition, independent trustees receive a quarterly meeting fee of $6,500, for each in-person Board meeting attended, a meeting fee of $1,500 for each telephonic or special board meeting attended, a $1,500 fee for each Board committee meeting attended, and are reimbursed for all out-of-pocket expenses relating to attendance at such meetings. These amounts are included in the Statement of Operations in “Trustees’ fees”.
In conjunction with the launch of the Funds and additional share classes, the Advisor invested seed capital to provide each Fund or share class with its initial investment assets. The table below shows, as of March 31, 2021, each Fund’s net assets, the shares of each Fund held by the Advisor, and the percent of total net assets represented by the Advisor’s investment.
Net Assets | Shares held by Advisor | % of Fund Net Assets | ||||||||||
Short Duration Fixed Income Fund | $ | 64,598,763 | 500,394 | 7.9% | ||||||||
4. Fund Distribution:
Each of the Funds has adopted a Master Distribution 12b-1 Plan (the “Plan”) in which Quasar Distributors LLC (the “Distributor”) acts as the Funds’ distributor. The Plan permits each Fund to make payments for or to reimburse the Distributor for distribution-related costs and expenses of marketing shares of Class A covered under the Plan, and/or for providing shareholder services. The Plan does not apply to Class I. The current Plan fee rate for Class A is 0.10%.
Plan fees are based on average daily net assets of Class A. The Distributor, subject to applicable legal requirements, may waive a Plan fee voluntarily, in whole or in part. For the year ended March 31, 2021, there were no fees waived by the Distributor.
5. Securities Transactions:
The cost of securities purchased and proceeds from securities sold (excluding securities maturing less than one year from acquisition) for the year ended March 31, 2021 were as follows:
Purchases | Sales (Excl. U.S. Gov’t) | Sales of U.S. Gov’t. | ||||||||||
Short Duration Fixed Income Fund | $42,795,764 | $34,368,115 | $308,442 | |||||||||
Ultra-Short Fixed Income Fund | 85,185,209 | 29,027,070 | 530,731 |
46
NOTES TO FINANCIAL STATEMENTS
6. Capital Share Transactions:
The Trust is authorized to issue an unlimited number of shares of beneficial interest (“shares outstanding”) without par value. Transactions in capital stock of the Funds are summarized on the following pages:
Short Duration Fixed Income Fund | Ultra-Short Fixed Income Fund | |||||||||||||||||||
For the Year Ended March 31, 2021 | For the Year Ended March 31, 2020 | For the Year Ended March 31, 2021 | For the Year Ended March 31, 2020 | |||||||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Proceeds from shares issued | $ | 709,715 | $ | — | $ | 12,835,122 | $ | 9,113,603 | ||||||||||||
Distributions reinvested | 7,561 | 7,644 | 134,440 | 76,462 | ||||||||||||||||
Cost of shares redeemed | (614,498 | ) | (17,672 | ) | (2,839,365 | ) | (4,903,474 | ) | ||||||||||||
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Change in Class A | $ | 102,778 | $ | (10,028 | ) | $ | 10,130,197 | $ | 4,286,591 | |||||||||||
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Class I | ||||||||||||||||||||
Proceeds from shares issued | $ | 21,794,611 | $ | 32,255,714 | $ | 80,154,732 | $ | 37,609,125 | ||||||||||||
Distributions reinvested | 1,193,085 | 1,044,878 | 580,363 | 649,900 | ||||||||||||||||
Cost of shares redeemed | (17,352,591 | ) | (3,208,643 | ) | (37,477,473 | ) | (32,239,671 | ) | ||||||||||||
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Change in Class I | $ | 5,635,105 | $ | 30,091,949 | $ | 43,257,622 | $ | 6,019,354 | ||||||||||||
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Change in net assets resulting from capital transactions | $ | 5,737,883 | $ | 30,081,921 | $ | 53,387,819 | $ | 10,305,945 | ||||||||||||
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SHARE TRANSACTIONS: | ||||||||||||||||||||
Class A | ||||||||||||||||||||
Issued | 70,845 | — | 1,290,212 | 917,015 | ||||||||||||||||
Reinvested | 744 | 762 | 13,499 | 7,728 | ||||||||||||||||
Redeemed | (60,614 | ) | (1,753 | ) | (284,952 | ) | (500,067 | ) | ||||||||||||
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Change in Class A | 10,975 | (991 | ) | 1,018,759 | 424,676 | |||||||||||||||
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Class I | ||||||||||||||||||||
Issued | 2,147,703 | 3,203,863 | 8,042,106 | 3,815,983 | ||||||||||||||||
Reinvested | 117,499 | 104,177 | 58,388 | 65,704 | ||||||||||||||||
Redeemed | (1,710,568 | ) | (320,282 | ) | (3,763,365 | ) | (3,293,267 | ) | ||||||||||||
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Change in Class I | 554,634 | 2,987,758 | 4,337,129 | 588,420 | ||||||||||||||||
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Change in shares resulting from capital transactions | 565,609 | 2,986,767 | �� | 5,355,888 | 1,013,096 | |||||||||||||||
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7. Federal Income Taxes:
It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined under Subchapter M of the Internal Revenue Code, and to distribute substantially all of its net investment income and net realized capital gains. Therefore, no federal tax liability is recorded in the financial statements of each Fund.
Fund Management has analyzed the Fund’s tax positions taken or expected to be taken on federal income tax returns for all open tax years (current and prior three tax years) and has concluded that no provision for federal income tax is required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
47
NOTES TO FINANCIAL STATEMENTS
As of and during the year ended March 31, 2021, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the year ended March 31, 2021, the Funds did not incur any interest or penalties.
As of March 31, 2021, the tax cost of investments and the breakdown of unrealized appreciation (depreciation) for each Fund was as follows:
Tax Cost Of Investments | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) | |||||||||||||
Short Duration Fixed Income Fund | $63,448,567 | $866,740 | $ (97,817 | ) | $768,923 | |||||||||||
Ultra-Short Fixed Income Fund | 98,565,373 | 447,061 | (119,502 | ) | 327,559 |
The difference between book basis and tax basis unrealized appreciation/depreciation is attributable to the mark to market on derivatives.
The tax character of distributions during the year ended March 31, 2021 were as follows:
Distributions Paid From | ||||||||||||
Ordinary Income | Total Taxable Distributions | Total Distributions Paid | ||||||||||
Short Duration Fixed Income Fund | $ | 1,200,990 | $1,200,990 | $1,200,990 | ||||||||
Ultra-Short Fixed Income Fund | 783,235 | 783,235 | 783,235 |
The tax character of distributions during the year ended March 31, 2020 were as follows:
Distributions Paid From | ||||||||||||
Ordinary Income | Total Taxable Distributions | Total Distributions Paid | ||||||||||
Short Duration Fixed Income Fund | $1,052,576 | $1,052,576 | $1,052,576 | |||||||||
Ultra-Short Fixed Income Fund | 746,191 | 746,191 | 746,191 |
Total distributions paid may differ from the Statements of Changes in Net Assets because distributions are recognized when actually paid for tax purposes.
48
NOTES TO FINANCIAL STATEMENTS
As of March 31, 2021, the components of accumulated earnings/(losses) on a tax basis were as follows:
Short Duration Fixed Income Fund | Ultra-Short Fixed Income Fund | |||||||||||||||
Undistributed ordinary income | $ | 26,597 | $ | 5,775 | ||||||||||||
Undistributed long term gain | 17,029 | — | ||||||||||||||
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Accumulated earnings | 43,626 | 5,775 | ||||||||||||||
Distributions payable | (910 | ) | (5,657 | ) | ||||||||||||
Accumulated capital loss carryforwards | — | (177,568 | ) | |||||||||||||
Unrealized appreciation | 768,923 | 327,559 | ||||||||||||||
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Total Accumulated Earnings | $ | 811,639 | $ | 150,109 | ||||||||||||
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As of March 31, 2021, Ultra-Short Fixed Income Fund had a short-term capital loss carryforward of $148,670 and a long-term capital loss carryforward of $28,898, available to offset future realized capital gains in accordance with the Regulated Investment Company Modernization Act of 2010. This capital loss carryforward is not subject to expiration.
During the year ended March 31, 2021 the Short Duration Fixed Income Fund and Ultra-Short Fixed Income Fund utilized $469,025 and $366,638, respectively, of capital loss carryforwards.
Under current tax law, capital losses realized after October 31 and ordinary losses after December 31 of a Fund’s fiscal year may be deferred and treated as occurring on the first business day of the following fiscal year for tax purposes. The Short Duration Fixed Income Fund and Ultra-Short Fixed Income Fund did not have any deferred qualified late-year capital losses.
8. Line of Credit
The Funds, along with other Funds within the Trust, participate in an uncommitted, unsecured $500,000,000 line of credit with U.S. Bank, N.A. (the “Bank”), the Funds’ custodian, to be used to fund shareholder redemption requests and for other short-term temporary or emergency general business purposes. The line of credit has a scheduled termination date of July 31, 2021. Interest is charged on borrowings under this line of credit at the Bank’s prime lending rate per annum. Since multiple funds within the Trust participate in this line of credit, there is no assurance that an individual fund will have access to all or any part of the $500,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at March 31, 2021 and there were no borrowings made by the Funds during
the period.
9. Significant Risks
Shareholder concentration risk:
As of March 31, 2021, the following Funds had omnibus accounts which each owned more than 10% of a Fund’s outstanding shares as shown below:
# of Omnibus Accounts | % of Fund | |||||||
Short Duration Fixed Income Fund | 3 | 87.7% | ||||||
Ultra-Short Fixed Income Fund | 2 | 57.0% |
In addition, an unaffiliated shareholder owned 30.2% of the Ultra-Short Fixed Income Fund as of March 31, 2021. Significant transactions by these shareholders may impact the Funds’ performance.
Market risk
One or more markets in which a Fund invests may go down in value, sometimes sharply and unpredictably, and the value of a Fund’s portfolio securities may fall or fail to rise. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. In addition, global
49
NOTES TO FINANCIAL STATEMENTS
economies and financial markets are becoming increasingly interconnected, and political, economic and other conditions and events (including, but not limited to, natural disasters, pandemics, epidemics, and social unrest) in one country, region, or financial market may adversely impact issuers in a different country, region or financial market. Furthermore, the occurrence of, among other events, natural or man-made disasters, severe weather or geological events, fires, floods, earthquakes, outbreaks of disease (such as COVID-19, avian influenza or H1N1/09), epidemics, pandemics, malicious acts, cyber-attacks, terrorist acts or the occurrence of climate change, may also adversely impact the performance of a Fund. Such events could adversely impact issuers, markets and economies over the short- and long-term, including in ways that cannot necessarily be foreseen. A Fund could be negatively impacted if the value of a portfolio holding were harmed by such political or economic conditions or events. Moreover, such negative political and economic conditions and events could disrupt the processes necessary for a Fund’s operations.
10. Subsequent Events:
Fund Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were issued and the following item was noted:
Following the period end, affiliated and unaffiliated shareholders of Short Duration Fixed Income Fund redeemed $26,649,706, which represented approximately 41.3% of the Fund’s net assets as of March 31, 2021.
50
To the Board of Trustees of RBC Funds Trust and Shareholders of RBC Short Duration Fixed Income Fund and RBC Ultra-Short Fixed Income Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of RBC Short Duration Fixed Income Fund and RBC Ultra-Short Fixed Income Fund (two of the funds constituting RBC Funds Trust, hereafter collectively referred to as the “Funds”) as of March 31, 2021, the related statements of operations for the year ended March 31, 2021, the statements of changes in net assets for each of the two years in the period ended March 31, 2021, including the related notes, and the financial highlights for each of the five years in the period ended March 31, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2021, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended March 31, 2021 and each of the financial highlights for each of the five years in the period ended March 31, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2021 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Minneapolis, Minnesota
May 21, 2021
We have served as the auditor of one or more investment companies in the RBC Funds since 2016.
51
For the year ended March 31, 2021, the following Funds had a qualified interest income percentage of:
Qualified | ||||
Short Duration Fixed Income Fund | 100.00% | |||
Ultra-Short Fixed Income Fund | 100.00% |
Pursuant to Internal Revenue Code Section 852(b)(3), the Short Duration Fund reported $17,029 as long-term capital gain distribution for the year ended March 31, 2021.
All reportings are based on financial information available as of the date of this annual report and, accordingly, are subject to change. For each item above, it is the intention of the Funds to report the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.
52
Independent Trustees(1)(2)
Lucy Hancock Bode (69)
Position, Term of Office and Length of Time Served with the Trust: Trustee since January 2004
Principal Occupation(s) During Past 5 Years: Healthcare consultant (self-employed) (1986 to present)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee During Past 5 Years: Franklin Street Partners (2014 to present); BioSignia (2006 to 2010).
Leslie H. Garner Jr. (70)
Position, Term of Office and Length of Time Served with the Trust: Trustee since January 2004
Principal Occupation(s) During Past 5 Years: President and Chief Executive Officer, The Greater Cedar Rapids Community Foundation (2010 to present); President, Cornell College (1994 to 2010)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee During Past 5 Years: None
Phillip G. Goff. (57)
Position, Term of Office and Length of Time Served with the Trust: Trustee since January 2020
Principal Occupation(s) During Past 5 Years: Senior Vice President/Corporate Controller and Funds Treasurer, TIAA (October 2006-August 2017)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee During Past 5 Years: None
Ronald James (70)
Position, Term of Office and Length of Time Served with the Trust: Trustee since January 2004
Principal Occupation(s) During Past 5 Years: Faculty member (part time), University of St. Thomas (2004 to present), President and Chief Executive Officer, Center for Ethical Business Cultures (2000 to January 2017)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee During Past 5 Years: Bremer Financial Corporation (2004 to present); Greater Twin Cities United Way (2012 to 2020); Best Buy Co. Inc. (2004 to 2013)
John A. MacDonald (72)
Position, Term of Office and Length of Time Served with the Trust: Trustee since January 2004
Principal Occupation(s) During Past 5 Years: Vice President and Treasurer, Hall Family Foundation (1988 to 2020); Chief Investment Officer, Chinquapin Trust Company (1999 to 2020)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee During Past 5 Years: None
53
MANAGEMENT (UNAUDITED)
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Independent Trustees(1)(2)
James R. Seward, CFA (68)
Position, Term of Office and Length of Time Served with the Trust: Chairman of the Board and Trustee since January 2004
Principal Occupation(s) During Past 5 Years: Private investor (2000 to present)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee During Past 5 Years: Sooner Holdings (formerly Syntroleum Corporation) (1988 to 2015); Brookdale Senior Living Inc. (2008 to 2019)
Interested Trustees(1)(2)(3)
Kathleen A. Gorman (57)(5)
Position, Term of Office and Length of Time Served with the Trust: Trustee since September 2012
Principal Occupation(s) During Past 5 Years: President and Chief Executive Officer, RBC Funds (2012 to present); Assistant Secretary (March 2018 to present); Chief Compliance Officer, RBC Funds (2006 to 2012)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee During Past 5 Years: None
54
MANAGEMENT (UNAUDITED)
Executive Officers(1)(3)(4)
Kathleen A. Gorman (57)
Position, Term of Office and Length of Time Served with the Trust: President and Chief Executive Officer since September 2012 and Assistant Secretary, (March 2018 to present)
Principal Occupation(s) During Past 5 Years: President and Chief Executive Officer, RBC Funds (2012 to present); Assistant Secretary, RBC Funds (March 2018 to present);Chief Compliance Officer, RBC Funds (2006 to 2012)
Kathleen A. Hegna (54)
Position, Term of Office and Length of Time Served with the Trust: Chief Financial Officer and Principal Accounting Officer since May 2009 and Treasurer since March 2014
Principal Occupation(s) During Past 5 Years: Associate Vice President and Director, Mutual Fund Services, RBC Global Asset Management (U.S.) Inc. (2009 to present)
Christina M. Weber (52)
Position, Term of Office and Length of Time Served with the Trust: Chief Compliance Officer since December 2012 and Secretary since September 2017
Principal Occupation(s) During Past 5 Years: Chief Compliance Officer, RBC Global Asset Management (U.S.) Inc. (June 2018 to present); Chief Compliance Officer, RBC Funds (2012 to present); Assistant Secretary, RBC Funds (2013 to 2017); Senior Compliance Officer, RBC Funds (March 2012 to December 2012)
(1) | Except as otherwise noted, the address of each Trustee/Officer is RBC Funds Trust, 50 South Sixth Street, Suite 2350, Minneapolis, Minnesota 55402. |
(2) | All Trustees must retire on or before December 31 of the year in which they reach age 75. The Board may temporarily waive this requirement when necessary to avoid depriving the Board of a Trustee with critical skills. |
(3) | On December 31, 2009, Voyageur Asset Management Inc. changed its name to RBC Global Asset Management (U.S.) Inc. Any references to RBC Global Asset Management (U.S.) Inc. for prior periods are deemed to be references to the prior entity. |
(4) | Each officer serves in such capacity for an indefinite period of time until his or her removal, resignation or retirement. |
(5) | Kathleen A. Gorman has been determined to be an interested Trustee by virtue of her position with the Advisor. |
The Fund’s Statement of Additional Information includes information about the Funds’ Trustees. To receive your free copy of the Statement of Additional Information, call toll free: 1-800-422-2766.
55
The Funds offer Class A and Class I shares.
Class A
Class A shares are intended for investors meeting certain minimum investment thresholds. This share class does not have an up-front sales charge (load). Class A shares currently include a 0.10% (10 bps) annual 12b-1 service and distribution fee.
Class I
Class I shares are intended for investors meeting certain minimum investment thresholds. This share class does not have an up-front sales charge (load) or a 12b-1 service and distribution fee.
56
Shareholder Expense Examples
As a shareholder of the the RBC Funds, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the RBC Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2020 through March 31, 2021.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Beginning Account Value 10/1/20 | Ending Account Value 3/31/21 | Expenses Paid During Period* 10/1/20–3/31/21 | Annualized Expense Ratio During Period 10/1/20–3/31/21 | |||||||||||||
Short Duration Fixed Income Fund | ||||||||||||||||
Class A | $1,000.00 | $1,005.70 | $2.25 | 0.45% | ||||||||||||
Class I | 1,000.00 | 1,005.20 | 1.75 | 0.35% | ||||||||||||
Ultra-Short Fixed Income Fund | ||||||||||||||||
Class A | 1,000.00 | 1,005.50 | 1.90 | 0.38% | ||||||||||||
Class I | 1,000.00 | 1,006.00 | 1.40 | 0.28% |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 182/365 (to reflect one half year period).
57
SUPPLEMENTAL INFORMATION (UNAUDITED)
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on each RBC Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value 10/1/20 | Ending Account Value 3/31/21 | Expenses Paid During Period* 10/1/20-3/31/21 | Annualized Expense Ratio During Period 10/1/20-3/31/21 | |||||||||||||
Short Duration Fixed Income Fund | ||||||||||||||||
Class A | $1,000.00 | $1,022.69 | $2.27 | 0.45% | ||||||||||||
Class I | 1,000.00 | 1,023.19 | 1.77 | 0.35% | ||||||||||||
Ultra-Short Fixed Income Fund | ||||||||||||||||
Class A | 1,000.00 | 1,023.04 | 1.92 | 0.38% | ||||||||||||
Class I | 1,000.00 | 1,023.54 | 1.41 | 0.28% |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 182/365 (to reflect one half year period).
58
This section discusses the operation and effectiveness of the Liquidity Risk Management Program (the “Program”) of RBC Funds Trust (the “Trust”), including each of its series (each, a “Fund” and collectively, the “Funds”), established in accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule” and the “1940 Act,” respectively). The Board of Trustees of the Trust (the “Board”), including a majority of the Trustees who are not “interested persons” as defined in the 1940 Act, approved the Program on behalf of each Fund, as required pursuant to the Liquidity Rule. The Board also approved the designation of RBC Global Asset Management (U.S.) Inc. (“RBC”), the investment adviser to each Fund, as the Program Administrator for the Program. RBC administers day-to-day implementation of the Program through a working group known as the Liquidity Risk Committee (the “Committee”), as set forth in the Program.
RBC, as Program Administrator, provided the Board with a report addressing the operation of the Program and assessing its adequacy and effectiveness of implementation, including, if applicable, the operation of any Fund’s highly liquid investments minimum (“HLIM”) and any material changes to the Program (the “Report”).
The Report covered the year ending December 31, 2020 (the “Review Period”).
I. Key Conclusions of the Report
The Program, as implemented, is reasonably designed to assess and manage each Fund’s liquidity risk. During the Review Period, the Program was implemented and operated effectively to achieve the goal of assessing and managing each Fund’s liquidity risk. No Fund was required to set an HLIM and each Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund. There were no material changes to the Program implemented during the Review Period.
II. Summary of the Review
A. Liquidity Risk Assessment and Review
Throughout the Review Period, the Program Administrator, in consultation with investment personnel, monitored the Funds’ portfolio liquidity and liquidity risk on an ongoing basis, as described in the Program, monthly in connection with recording the liquidity classification for each portfolio investment for reporting on Form N-PORT, and in Board reporting throughout the Review Period.
The Program Administrator also conducted an annual review assessing each Fund’s liquidity risk as described in the Report, in accordance with the requirements of the Program and the Liquidity Rule, taking into account the following factors enumerated in the Liquidity Rule and identified in the Program, as applicable:
a. Each Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions, including: (i) whether the Fund’s investment strategy is appropriate for an open-end fund; (ii) the extent to which the Fund’s strategy involves a relatively concentrated portfolio or large positions in particular issuers; (iii) the Fund’s use of borrowings for investment purposes; and (iv) the Fund’s use of derivatives (including for hedging purposes);
b. Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions; and
c. Holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources.
Investment Strategy and Portfolio Liquidity. The Program Administrator considered the factors identified above, among others, during both normal and reasonably foreseeable stressed conditions as provided in the Program. Pursuant to the review, the Program Administrator determined that each Fund’s investment strategy and use of derivatives are appropriate for an open-end fund.
Cash Flow. The Funds’ cash flows did not have a material effect on the ability to meet redemptions during the Review Period.
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STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT PROGRAM (UNAUDITED)
Holdings of Cash and Borrowing Arrangements. As described in the Report, the Program Administrator determined that the Funds’ holdings of cash and borrowing arrangements were adequate for meeting the Funds’ expected cash flow needs to meet redemptions during the Review Period.
In light of the assessment and review as discussed above, the Program Administrator did not recommend any material changes in the management of the Funds’ liquidity risks, including with respect to any of the above factors.
B. Portfolio Holdings Classifications
During the Review Period, each Fund’s portfolio holdings (including derivative investments) were classified monthly as Highly Liquid Investments, Moderately Liquid Investments, Less Liquid Investments and Illiquid Investments pursuant to the Program, as required by the Liquidity Rule.
During the Review Period, the Funds classified portfolio investments (including, as applicable, derivatives transactions) according to asset class when appropriate, as described in the Program. In addition, pursuant to the Program, each Fund must separately classify and review any investment within an asset class if any market, trading, or investment-specific considerations are reasonably expected to significantly affect the liquidity of the investment as compared the Fund’s other portfolio holdings within that asset class. During the Review Period, there were no circumstances in which a Fund was required to separately classify any investment within an asset class.
Market Depth—Reasonably Anticipated Trading Size (“RATS”). In classifying and reviewing its portfolio investments or asset classes (as applicable), each Fund must determine whether trading varying portions of a position in a particular portfolio investment or asset class, in sizes that the Fund would reasonably anticipate trading, is reasonably expected to significantly affect its liquidity. Each Fund must take this determination into account when classifying the liquidity of that investment or asset class. Although there were higher than average redemptions during the Review Period due to COVID-19 pandemic lockdowns, there were no changes to the RATS assumptions for the Funds during the Review period.
Classification Review. As required by the Liquidity Rule, the Funds reviewed liquidity classifications on a monthly basis during the Review Period as described in the Program. The Committee met monthly, including twice in March in response to the COVID-19 pandemic, to review its portfolio investments’ classifications in connection with recording the liquidity classification for each portfolio investment for reporting on Form N-PORT. The Program Administrator oversaw the Funds’ process for classifying portfolio holdings under the Liquidity Rule and reviewed the classifications, as described in the Program. This review included a review of the methodology and data inputs used. During the Review Period, the Program Administrator determined that there were no material operational issues with the process for classifying portfolio holdings, although unexpected market closures resulting from the COVID-19 materially affected one or more investments’ classification. Due to market volatility and such market closures, the Committee determined that, between March 13th and the end of June, a daily review of the Funds’ classifications was warranted.
C. HLIM
The Program Administrator reviewed the process and standards for determining that each Fund primarily holds investments that are highly liquid. There were no changes recommended in the Report with respect to the status of any Fund as a Primarily Highly Liquid Fund (“PHLF”) and each Fund qualified as a PHLF on an ongoing basis during the Review Period as described in the Report.
Accordingly, an HLIM was not required for any Fund during the Review Period pursuant to the relevant provisions of the Program.
D. Compliance with the 15% Limitation on Illiquid Investments
Pursuant to the Liquidity Rule, no Fund may acquire any illiquid investment if, after the acquisition, the Fund would have invested more than 15% of its assets in illiquid investments that are assets (the “15% Limit”). The Program Administrator monitored compliance with the 15% Limit as described in the Program. At no time during the Review Period did any Fund breach the 15% limit.
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STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT PROGRAM (UNAUDITED)
E. Redemptions in Kind
There were no redemptions in-kind effected by any Fund during the Review Period.
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RBC Funds
P.O. Box 701
Milwaukee, WI 53201-0701
800-422-2766
www.rbcgam.us
Performance data represents past performance and does not guarantee future results. The principal value of an investment and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
This report and the financial statements contained herein are provided for the information of RBC Funds shareholders. This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus, which contains information concerning investment objectives, risks, charges and expenses of the funds. Please read the prospectus carefully before investing.
This report and the financial statements contained herein are not intended to be a forecast of future events, a guarantee of future results, or investment advice. There is no assurance that certain securities will remain in or out of each fund’s portfolio. The views expressed in this report reflect those of the portfolio managers through the year ended March 31, 2021.
NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
RBC Global Asset Management (U.S.) Inc. serves as investment advisor for the RBC Funds. RBC Funds are distributed by Quasar Distributors LLC.
The RBC Funds are pleased to offer shareholder reports printed entirely on Forest
Stewardship Council® certified paper. FSC® certification ensures that the paper
used in this report contains fiber from well-managed and responsibly harvested
forests that meet strict environmental and socioeconomic standards.
RBCF-FI AR 03-21
(b) | Not applicable. |
Item 2. | Code of Ethics. |
(a) | The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. |
(c) | There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. |
(d) | The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions. |
Item 3. | Audit Committee Financial Expert. |
As of the end of the period covered by the report, the registrant’s board of directors has determined that Phillip G. Goff and James R. Seward are qualified to serve as an audit committee financial expert serving on its audit committee and that they are “independent,” as defined by Item 3 of Form N-CSR.
Item 4. | Principal Accountant Fees and Services. |
Audit Fees
(a) | The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $255,700 for 2021 and $249,400 for 2020. |
Audit-Related Fees
(b) | The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $0 for 2021 and $0 for 2020. |
Tax Fees
(c) | The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $29,120 for 2021 and $28,420 for 2020. |
All Other Fees
(d) | The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2021 and $0 for 2020. |
(e)(1) | Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. |
The Audit Committee (“Committee”) will review and approve in advance any proposal (except as set forth in (1) through (3) below) that the Trust employ the Funds’ auditor to render “permissible non-audit services” to the Funds. A “permissible non-audit service” is defined as a non-audit service that is not prohibited by Rule 2-01(c)(4) of Regulation S-X or other applicable law or regulation. The Committee will also review and approve in advance any proposal (except as set forth in (1) through (3) below) that the Adviser, and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the Funds (an “Adviser-affiliated service provider”), employ the Funds’ auditor to render non-audit services, if such engagement would relate directly to the operations and financial reporting of the Funds. As a part of its review, the Committee shall consider whether the provision of such services is consistent with the auditor’s independence. (See also “Delegation” below.)
Pre-approval by the Committee of non-audit services is not required so long as:
(1) (A) with respect to the Funds, the aggregate amount of all such permissible non-audit services provided to the Funds constitutes no more than 5% of the total amount of revenues paid to the auditor by the Funds during the fiscal year in which the services are provided; or
(B) with respect to the Adviser and any Adviser-affiliated service provider, the aggregate amount of all such non-audit services provided constitutes no more than 5% of the total amount of revenues (of the type that would have to be pre-approved by the Committee) paid to the auditor by the Funds, the Adviser and any Adviser-affiliated service provider during the fiscal year in which the services are provided;
(2) such services were not recognized by the Funds at the time of the engagement to be non-audit services; and
(3) such services are promptly brought to the attention of the Committee and approved by the Committee or its delegate or delegates, as defined below, prior to the completion of the audit.
(c) Delegation
The Committee may delegate to one or more of its members and/or to officers of the Trust the authority to pre-approve the auditor’s provision of audit services or permissible non-audit services to the Funds up to a predetermined amount. Any pre-approval determination made by a delegate will be presented to the full Committee at its next meeting. The Committee will communicate any pre-approval made by a delegate to the Trust’s fund accounting agent, which will ensure that the appropriate disclosure is made in the Funds’ periodic reports and other documents as required under the Federal securities laws.
(e)(2) | The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows: |
(b) | N/A |
(c) | 100% |
(d) | N/A |
(f) | The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was less than fifty percent. |
(g) | The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $358,941 for 2021 and $297,250 for 2020. |
(h) | The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. |
Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
Item 6. | Investments. |
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. | Controls and Procedures. |
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
Item 13. Exhibits.
(a)(1) | ||
(a)(2) | ||
(a)(3) | Not applicable. | |
(a)(4) | Not applicable. | |
(b) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | RBC Funds Trust |
By (Signature and Title)* | /s/Kathleen A. Gorman | |||
Kathleen A. Gorman, President and Chief Executive Officer | ||||
(principal executive officer) |
Date | 5/28/2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/Kathleen A. Gorman | |||
Kathleen A. Gorman, President and Chief Executive Officer | ||||
(principal executive officer) |
Date | 5/28/2021 |
By (Signature and Title)* | /s/Kathleen A. Hegna | |||
Kathleen A. Hegna, Treasurer and Chief Financial Officer | ||||
(principal financial officer) |
Date | 5/28/2021 |
* Print the name and title of each signing officer under his or her signature.