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)
100 South Fifth Street, Suite 2300
Minneapolis, MN 55402-1240
(Address of principal executive offices) (Zip code)
Lee Greenhalgh, Esq.
RBC Plaza
60 South Sixth Street
Minneapolis, MN 55402
(Name and address of agent for service)
Registrant’s telephone number, including area code: (612) 313-1341
Date of fiscal year end: September 30
Date of reporting period: September 30, 2010
Item 1. | Reports to Stockholders. |
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 Russell equity 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 Funds’ prospectus for further detail as to your Funds’ 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. | ||||||||
Information regarding how your Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (i) on the Fund’s website at www.rbcgam.us; and (ii) on the Commission’s website at http://www.sec.gov. | ||||||||
A schedule of each Fund’s portfolio holdings will be filed with the Commission for the first and third quarters of each fiscal year on Form N-Q. This information is available on the Commission’s website at http://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room is available by calling 1-202-551-8090.
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Table of | ||||||||
Contents | Letter from the CIO of Equities | 1 | ||||||
Equity Portfolio Managers | 4 | |||||||
Performance Summary | 6 | |||||||
RBC SMID Cap Growth Fund | 10 | |||||||
RBC Enterprise Fund | 12 | |||||||
RBC Small Cap Core Fund | 14 | |||||||
RBC Microcap Value Fund | 16 | |||||||
RBC Mid Cap Value Fund | 18 | |||||||
Schedules of Portfolio Investments | 20 | |||||||
Financial Statements | ||||||||
- Statements of Assets and Liabilities | 44 | |||||||
- Statements of Operations | 46 | |||||||
- Statements of Changes in Net Assets | 47 | |||||||
Financial Highlights | 52 | |||||||
Notes to Financial Statements | 62 | |||||||
Report of Independent Registered Public Accounting Firm | 73 | |||||||
Other Federal Income Tax Information | 74 | |||||||
Management | 75 | |||||||
Share Class Information | 78 | |||||||
Supplemental Information | 79 | |||||||
Approval of Investment Advisory Agreement | 81 | |||||||
LETTER FROM THE CIO OF EQUITIES
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quarter. This reduces energy costs for both businesses and consumers. Households are also in much better shape, having been able to lower their financial burden, in particular through mortgage refinancing. In addition, wages have ticked higher despite high unemployment. The 90% of the U.S. labor force who are employed are earning more per hour and working more hours. Personal income increased 0.5% in August while compensation was up 0.3% as private wages and salaries jumped 0.5%. This gain reflects the increase in hours worked and job creation, albeit modest. | ||||||
Potential in Equities... But be Aware of the Risks | ||||||
Surveying equity markets in the fall of 2010 and looking into 2011, we believe stock valuations remain attractive, as an expanding economy translates into corporate profit growth. During the recent downturn, profits declined well below their long-term trend. That has changed, and Wall Street analysts now expect double-digit profit growth in both 2010 and 2011. | ||||||
Based on current prices and expectations for earnings, equities should remain a compelling proposition. The evidence can be seen in the price-to-earnings ratio for U.S. equities, which indicates how much investors must pay for a given amount of company earnings. Based on current expectations for 2010 and 2011, Price to Earnings (P/E) ratios become increasingly appealing. | ||||||
Risk On... Risk Off | ||||||
In capital markets, risk goes hand-in-hand with opportunity. Investors should consider not only the return they expect a stock, sector or asset class to produce, but also how much that return might vary from what is expected. | ||||||
Our research indicates that while returns are very hard to forecast, volatility is less so. Volatility tends to be “sticky,” i.e., it spends time both above and below normal, and it tends to move away from those extremes and back to equilibrium at a muted pace. Intuitively this makes sense since stock markets are influenced heavily by both optimism and pessimism – and these attitudes do not always change overnight. The current environment suggests that the return potential for global stocks is above normal, but so is volatility. | ||||||
However, the patterns of recent events appear to have parallels in the aftermath of the U.S. savings and loan crisis of the early 1990s. In the ensuing years, ultra-low interest rates unleashed speculative forces that eventually led to the devaluation of the Mexican peso in 1994, the Asian crisis in 1997 and the Russian debt crisis in 1998. | ||||||
Opportunity Can Arise from Volatile Markets | ||||||
These disturbances rattled markets, but equities eventually resumed their upward trajectory. One of the key reasons for this was the aftershocks from crisis spurred monetary authorities to ease their policies or prompted one or more nations to provide fiscal stimulus aimed at encouraging economic growth and stabilizing markets. | ||||||
Market setbacks can be painful, but they also allow disciplined investors to capitalize on overreactions. For example, U.S. budget woes have weakened the dollar, but some U.S. companies are likely to see their exports grow as they become more affordable to emerging markets such as China. | ||||||
2 |
LETTER FROM THE CIO OF EQUITIES
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Effective research and portfolio management can always point to areas of opportunity. Every investor has to fit these opportunities into a portfolio framework whose overall strategy should align with defined long-term goals. | ||||
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Gordon Telfer | ||||
RBC Funds Chief Investment Officer | ||||
Equity Products | ||||
Past performance is not a guarantee of future results. | ||||
Mutual fund investing involves risk. Principal loss is possible. |
Gordon Telfer Chief Investment Officer, Equity Products | |||
Fund holdings and sector allocations are subject to change at any time and should not be considered recommendations to buy or sell any security. Please refer to the Schedule of Investments in this report for a complete list of fund holdings.
Current and future portfolio holdings are subject to risk.
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, nor investment advice.
The Price to Earnings (P/E) Ratio is a common tool for comparing the prices of different common stocks and is calculated by dividing the current market price of a stock by the earnings per share
The S&P 500 Index is an unmanaged market capitalization-weighted index based on the average weighted performance of 500 widely held common stocks.
The Russell Midcap Index is an unmanaged index that measures the performance of approximately 800 of the smallest securities in the Russell 1000 Index based on a combination of their market cap and current index membership.
The Russell 2000 Index is an unmanaged index that measures the performance of approximately 200 of the largest securities in the Russell 3000 Index based on a combination of their market cap and current index membership.
It is not possible to invest directly in an index. | ||||
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 RBC Equity Funds, with no individual team member being solely responsible for the investment decisions.
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Gordon Telfer |
Gordon Telfer Chief Investment Officer, Equity Products, Managing Director, Head of Growth Equities US. Gordon Telfer is Chief Investment Officer, Equity Products and is responsible for directing RBC GAM (US)’s U.S. equities research efforts. He joined RBC GAM (US) in 2003 from Alliance Capital Management where he was a senior portfolio manager and a member of Alliance’s Investment Policy Group. Prior to Alliance, he worked for Scudder Kemper Investments as senior vice president and global strategist and spokesperson for Scudder Kemper’s U.S. and International Portfolio Management Group. Gordon began his career in the investment industry in 1986 at Murray Johnstone International in portfolio management. He has spoken at numerous regional and national conferences on portfolio management and been a guest on CNBC. A native of Glasglow, Scotland, Gordon received his Stock Exchange Diploma from the Herriott Watt University, Edinburgh, Scotland
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Lance F. James |
Lance F. James Managing Director, Senior Portfolio Manager Lance James is responsible for portfolio management of the RBC Small Cap Core Fund, RBC Enterprise Fund, and RBC Microcap Value Fund. He is also co-manager of RBC Mid Cap Value Fund. Prior to joining RBC GAM (US) in 2006, Lance was an equity analyst and portfolio manager for OFI Institutional and Babson Capital Management, affiliated companies of Mass Mutual Life Insurance Company. During his tenure he served as head of the firm’s small/mid cap value investment team. Prior to joining Babson Capital in 1986, Lance worked at Rockwell International Corporation, EBF Associates of Boston and Hewitt Associates. Lance began his career in the investment industry in 1980. He received an AB in Economics from Princeton University and an MBA in Finance from the Wharton School of Business at the University of Pennsylvania.
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George Prince Portfolio Manager, Senior Equity Analyst George Prince serves as the co-portfolio manager for the RBC Enterprise Fund. George also provides research support for the RBC Small Cap Core Fund. He joined RBC GAM (US) in 2006 from Eagle Asset Management, where he was a senior equity analyst. Prior to his experience at Eagle Asset Management, George was an analyst at Babson Capital Management. George also has a great deal of entrepreneurial experience and founded SignStorey, a leader in place-based digital communications in retail stores and co-founded Cutting Edge Inc., a global CAD-CAM technology company. George has over 12 years of investment industry experience. He received a BA from Yale University.
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George Prince | ||||||
4 |
EQUITY PORTFOLIO MANAGERS
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Kenneth A. Tyszko, CPA, CFA Vice President, Senior Portfolio Manager Ken Tyszko is responsible for portfolio management of the RBC SMID Cap Growth Fund (formerly known as RBC Mid Cap Growth Fund). He joined RBC GAM (US) in 2001 from Oberweis Asset Management Inc., where he served as a portfolio manager. From 1996 to 1999, he managed small cap growth assets for ABN AMRO Asset Management (USA) Inc. and ABN AMRO Incorporated. Before working at ABN AMRO, Ken was a portfolio manager with Sears Investment Management Co. (SIMCO). His background also includes experience at Main Hurdman, an international accounting and consulting firm. Ken began his career in the investment industry in 1984. He received a BS in Accountancy from the University of Illinois. Ken is both a CFA charterholder and a Certified Public Accountant. He is a member of the Illinois CPA Society, the CFA Society of Chicago and the CFA Institute. Ken has been a guest on Bloomberg Television and WebFN.
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Kenneth A. Tyszko | |||||
Stephen E. Kylander Vice President, Senior Portfolio Manager Steve Kylander is responsible for portfolio management of the RBC Mid Cap Value Fund. Prior to joining RBC GAM (US) in 2006, he was a portfolio manager and research analyst for Babson Capital Management. Steve’s previous experience also includes strategy consulting, mergers and acquisitions work and investment banking for L.E.K. Consulting, The Yarmouth Group, and First Boston Corporation. He began working in the investment industry in 1986. Steve earned a BA from Dartmouth College and an MBA from Harvard Business School.
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5 |
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Average Annual Total Returns as of September 30, 2010 (Unaudited)
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RBC SMID Cap Growth Fund (formerly known as RBC Mid Cap Growth Fund)(a)
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1 Year | 3 Year | 5 Year | 10 Year | Since Inception(b) | Net Expense Ratio(1)(2) | Gross Expense Ratio(1)(2) | ||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||
- Including Maximum Sales Charge of 5.75% | 16.01% | (6.45)% | 0.36% | 1.53% | 9.95% | |||||||||||||||||||||||
- At Net Asset Value | 23.06% | (4.58)% | 1.54% | 2.14% | 10.28% | 1.35% | 1.79% | |||||||||||||||||||||
Class C (c) | ||||||||||||||||||||||||||||
- Including Contingent Deferred Sales Charge of 1.00% | 21.12% | (5.29)% | 0.77% | 1.38% | 9.46% | |||||||||||||||||||||||
- At Net Asset Value | 22.12% | (5.29)% | 0.77% | 1.38% | 9.46% | 2.09% | 2.53% | |||||||||||||||||||||
Class I | 23.30% | (4.36)% | 1.79% | 2.40% | 10.61% | 1.10% | 1.54% | |||||||||||||||||||||
Class S (d) | 23.17% | (4.38)% | 1.79% | 2.40% | 10.61% | 1.10% | 1.54% | |||||||||||||||||||||
Russell 2500 Growth Index* | 17.27% | (3.41)% | 3.09% | 0.47% | 9.11% | |||||||||||||||||||||||
Russell Midcap Growth Index*
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| 18.27%
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| (3.90)%
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| 2.86%
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| (0.88)%
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| 9.76%
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RBC Enterprise Fund (e)
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1 Year | 3 Year | 5 Year | 10 Year | Since Inception(f) | Net Expense Ratio(1)(2) | Gross Expense Ratio(1)(2) | ||||||||||||||||||||||
Class A (g) | ||||||||||||||||||||||||||||
- Including Maximum Sales Charge of 5.75% | 1.69% | (10.65)% | (2.88)% | 6.50% | 9.71% | |||||||||||||||||||||||
- At Net Asset Value | 7.93% | (8.86)% | (1.73)% | 7.13% | 9.96% | 1.33% | 1.76% | |||||||||||||||||||||
Class C (g) | ||||||||||||||||||||||||||||
- Including Contingent Deferred Sales Charge of 1.00% | 6.04% | (9.54)% | (2.47)% | 6.33% | 9.14% | |||||||||||||||||||||||
- At Net Asset Value | 7.04% | (9.54)% | (2.47)% | 6.33% | 9.14% | 2.08% | 2.51% | |||||||||||||||||||||
Class I (h) | 8.11% | (8.64)% | (1.49)% | 7.40% | 10.23% | 1.08% | 1.51% | |||||||||||||||||||||
Class S | 8.11% | (8.64)% | (1.49)% | 7.40% | 10.23% | 1.08% | 1.51% | |||||||||||||||||||||
Russell 2000 Index* | 13.35% | (4.29)% | 1.60% | 4.00% | 8.55% |
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 beginning on page 8. |
6
PERFORMANCE SUMMARY
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RBC Small Cap Core Fund (i)
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1 Year | 3 Year | 5 Year | 10 Year | Since Inception(j) | Net Expense Ratio(1)(2) | Gross Expense Ratio(1)(2) | ||||||||||||||||||||||
Class A (g) | ||||||||||||||||||||||||||||
- Including Maximum Sales Charge of 5.75% | 10.57% | (5.23)% | 1.63% | 5.58% | 9.16% | |||||||||||||||||||||||
- At Net Asset Value | 17.31% | (3.33)% | 2.84% | 6.21% | 9.50% | 1.47% | 2.28% | |||||||||||||||||||||
Class C (g) | ||||||||||||||||||||||||||||
- Including Contingent Deferred Sales Charge of 1.00% | 15.38% | (3.96)% | 2.14% | 5.45% | 8.70% | |||||||||||||||||||||||
- At Net Asset Value | 16.38% | (3.96)% | 2.14% | 5.45% | 8.70% | 2.23% | 2.99% | |||||||||||||||||||||
Class S | 17.64% | (2.97)% | 3.18% | 6.50% | 9.79% | 1.22% | 2.04% | |||||||||||||||||||||
Russell 2000 Index*
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| 13.35%
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| (4.29)%
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| 1.60%
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| 4.00%
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| 8.86%
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RBC Microcap Value Fund (k)
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1 Year | 3 Year | 5 Year | 10 Year | Since Inception(l) | Net Expense Ratio(1)(2) | Gross Expense Ratio(1)(2) | ||||||||||||||||||||||
Class A (g) | ||||||||||||||||||||||||||||
- Including Maximum Sales Charge of 5.75% | 4.75% | (9.85)% | (2.33)% | 5.87% | 7.88% | |||||||||||||||||||||||
- At Net Asset Value | 11.12% | (8.05)% | (1.16)% | 6.50% | 8.16% | 1.32% | 1.64% | |||||||||||||||||||||
Class C (g) | ||||||||||||||||||||||||||||
- Including Contingent Deferred Sales Charge of 1.00% | 9.21% | (8.75)% | (1.90)% | 5.71% | 7.35% | |||||||||||||||||||||||
- At Net Asset Value | 10.21% | (8.75)% | (1.90)% | 5.71% | 7.35% | 2.07% | 2.39% | |||||||||||||||||||||
Class S | 11.33% | (7.82)% | (0.91)% | 6.77% | 8.43% | 1.07% | 1.39% | |||||||||||||||||||||
Russell 2000 Value Index*
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| 11.84%
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| (4.99)%
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| 0.73%
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| 7.72%
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| 9.45%
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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 beginning on page 8.
7
PERFORMANCE SUMMARY
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RBC Mid Cap Value Fund
Since Inception(m) | Net Expense Ratio(1)(2)(3)(4) | Gross Expense Ratio(1)(2)(3)(4) | ||||||||||
Class I | 8.00% | 0.90% | 12.64% | |||||||||
- At Net Asset Value | ||||||||||||
Russell MidCap Value Index* | 11.15% |
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.
(1) The Funds’ expenses reflect the most recent fiscal year-end (September 30, 2010).
(2) The Adviser 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 January 31, 2011.
(3) For the period from December 31, 2009 (commencement of operations) to September 30, 2010.
(4) Annualized
*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.
(a) | The performance in the table for the period from June 1, 1994 to April 19, 2004 reflects the performance of RBC Mid Cap Equity Fund , the predecessor to RBC SMID Cap Growth Fund. The performance of the Fund also includes the performance of a common trust fund (“CTF”) account advised by RBC GAM (US) (including its predecessor) and managed the same as the Fund in all material respects for the period from December 31, 1990 to June 1, 1994, as adjusted to reflect the full contractual rate of expenses associated with the Fund at its inception. The CTF account was not registered with the SEC under the 1940 Act and therefore was not subject to the investment restrictions imposed by law on registered mutual funds. If the CTF account had been registered, the CTF account’s performance may have been adversely affected. Fund performance reflects applicable fee waivers/expense reimbursements (which, if excluded, would cause performance to be lower). |
(b) | The since inception date (commencement of operations) of the Fund is December 31, 1990. |
(c) | The inception date for Class C Shares of the Fund is April 19, 2004. All performance shown for each such class of shares prior to its inception date is based on the performance of the Class A Shares of the Fund, adjusted to reflect the fees and expenses of Class C Shares, as applicable (and where applicable, the maximum sales charges of the Class C Shares). |
(d) | The inception date for Class S Shares of the Fund is April 19, 2004. All performance shown for each such class of shares prior to its inception date is based on the performance of the Class I Shares of the Fund, adjusted to reflect the fees and expenses of Class S Shares. |
(e) | The performance in the table for the period from December 2, 1983 to April 19, 2004 reflects the performance of Babson Enterprise Fund, the predecessor to RBC Enterprise Fund . Fund performance reflects applicable fee waivers/expense reimbursements (which, if excluded, would cause performance to be lower). |
(f) | The since inception date (commencement of operations) of the Fund is December 2, 1983. The performance of the index since inception of the Fund is calculated from November 30, 1983. |
8
PERFORMANCE SUMMARY
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(g) | The inception date for Class A and Class C Shares of the Fund is April 19, 2004. All performance shown for each such class of shares prior to its inception date is based on the performance of the Class S Shares of the Fund, adjusted to reflect the fees and expenses of Class A and Class C Shares, as applicable (and where applicable, the maximum sales charges of the Class A and Class C Shares). |
(h) | The inception date for Class I Shares of the Fund is September 30, 2004. All performance shown for each such class of shares prior to its inception date is based on the performance of the Class S Shares of the Fund, adjusted to reflect the fees and expenses of Class I Shares, as applicable. |
(i) | The performance in the table for the period from August 5, 1991 to April 19, 2004 reflects the performance of Babson Enterprise Fund II, the predecessor to RBC Small Cap Core Fund. Fund performance reflects applicable fee waivers/expense reimbursements (which, if excluded, would cause performance to be lower). |
(j) | The since inception date (commencement of operations) of the Fund is August 5, 1991. The performance of the index since inception of the Fund is calculated from July 31, 1991. |
(k) | The performance in the table for the period from September 10, 1987 to April 19, 2004 reflects the performance of Shadow Stock Fund, the predecessor to RBC Microcap Value Fund. Fund performance reflects applicable fee waivers/expense reimbursements (which, if excluded, would cause performance to be lower). |
(l) | The since inception date (commencement of operations) of the Fund is September 10, 1987. The performance of the index since inception of the Fund is calculated from August 31, 1987. |
(m) | The since inception date (commencement of operations) of the Fund is December 31, 2009. The performance of the index since inception of the Fund is calculated from December 31, 2009. |
The Russell 2500 Growth Index is an unmanaged index that measures the performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values.
The Russell 2000 Value Index is an unmanaged index that measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.
The Russell 2000 Index is an unmanaged index that measures the performance of approximately 2,000 of the smallest securities in the Russell 3000 Index based on a combination of their market cap and current index membership.
The Russell Midcap Value Index is an unmanaged, market-weighted total return index that tracks the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth rates.
The Russell Midcap Growth Index is an unmanaged index that measures the performance of those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values.
The Russell Microcap Index is an unmanaged index that measures the performance of 1000 of the smallest securities in the Russell 2000 Index based on a combination of their market cap and current index membership.
9
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
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Investment Strategy |
Seeks long-term growth by primarily investing in high quality, small and mid capitalization companies that display consistent earnings growth and superior financial characteristics. Utilizing fundamental research, the Fund employs a bottom-up approach and strict risk controls to build a diversified portfolio of stocks that offer above average expected growth with lower than average market risk.
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Performance |
For the twelve-month period ended September 30, 2010, the Fund had a total return of 23.17% (Class S). That compares to a total return of 17.27% for the Russell 2500 Growth Index, the Fund’s primary benchmark.
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Factors That Made Positive Contributions |
— Strong outperformance during the year was primarily driven by favorable stock selection in the technology, health care and consumer discretionary sectors.
— Stock selection in the technology sector was the leading contributor to the Fund as strong earnings results throughout the year drove significant gains in the networking stocks of F5 Networks and Riverbed Technology. Akamai Technologies benefited from strong financial results while the announced takeout of CyberSource by Visa was also a material contributor to performance.
— Favorable stock selection in the consumer discretionary sector was driven by strengthening sales trends at specialty retailers Fossil and Tractor Supply, as well as fast-casual restaurant chain Panera Bread.
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Factors That Detracted From Relative Returns |
— Stock selection in the financials sector was the primary detractor for the period due to disappointing results from trading stocks Investment Technology Group and Knight Capital Group, while the Fund’s more defensive property-casualty insurance companies, Tower Group and HCC Insurance, also lagged in a strong period for the overall market.
— The Fund’s overweight position in the health care sector negatively impacted results as the overall sector lagged the performance of the index as a whole.
— The Fund’s modest cash position in a strong market environment also detracted from results.
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(1) Effective August 17, 2010, RBC Mid Cap Growth Fund changed its name to RBC SMID Cap Growth Fund.
Mutual fund investing involves risk. Principal loss is possible. Investing in small cap companies involves additional risks, including greater fluctuations in value and lack of liquidity. These risks are more fully described in the prospectus. The Fund invests in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods. | ||||||||
10 |
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
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RBC SMID Cap Growth Fund(1)
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Long-term capital appreciation.
| Investment Objective | |||||||||||
Russell Midcap Growth Index and Russell 2500 Growth Index
| Benchmark | |||||||||||
| Asset Allocation (as of 9/30/10) (% of fund’s investments) & Top Five Industries (as of 9/30/10) (% of fund’s net assets) | |||||||||||
F5 Networks, Inc. | 2.59% | Edwards Lifesciences Corp. | 2.12% | Top Ten Holdings (as of 9/30/10) (% of fund’s net assets) | ||||||||
Fossil, Inc. | 2.43% | Ross Stores, Inc. | 1.91% | |||||||||
Riverbed Technology, Inc. | 2.37% | Catalyst Health Solutions, Inc. | 1.83% | |||||||||
Tractor Supply Co. | 2.36% | LKQ Corp. | 1.80% | |||||||||
Akamai Technologies, Inc. | 2.21% | MICROS Systems, Inc. | 1.70% | |||||||||
*A listing of all portfolio holdings can be found beginning on page 20.
| ||||||||||||
| Growth of $10,000 Initial Investment Over 10 Years | |||||||||||
The graph reflects an initial investment of $10,000 over a 10 year period and is based on Class S shares. The performance of the Fund for the period from September 30, 2000 to April 19, 2004 reflects the performance of RBC Mid Cap Equity Fund, the predecessor to RBC SMID Cap Growth Fund. 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. |
11
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED) | ||||||
| ||||||
Investment Strategy | Seeks to provide superior long-term growth of capital compared to the Russell 2000 Index while taking a low risk approach to small company investing. The Adviser believes that portfolios of neglected small cap companies with low valuations, long-term attractive business fundamentals and near-term profitability improvement potential should produce strong absolute and risk-adjusted returns over time.
| |||||
Performance |
For the twelve-month period ended September 30, 2010, the Fund had a total return of 8.11% (Class S). That compares to a total return of 13.35% for the Russell 2000 Index, the Fund’s primary benchmark.
| |||||
Factors That Made Positive Contributions |
— Overall, favorable sector weighting provided a positive contribution for the Fund compared to the Russell 2000 Index for the one-year period.
— An underweight in the poorly performing financials sector and an overweight in the strongly performing information technology sector were the most important contributors to favorable sector weighting performance versus the benchmark.
— Favorable information technology stock selection, especially among software and electronic equipment and instruments companies, was also an important performance factor.
— Positive stock selection in the energy equipment and services industry provided a smaller boost to overall performance compared to the Russell 2000 Index.
| |||||
Factors That Detracted From Relative Returns |
— Overall, the Fund’s smaller market cap profile compared to the Russell 2000 Index and adverse stock selection detracted from relative returns in the one-year period.
— The Fund’s consistent focus on microcap stocks detracted from performance in a period when the Russell Microcap Index trailed the Russell 2000 Index by approximately 6.00%.
— Adverse stock selection had its largest negative impact in the industrials sector, especially among electrical equipment and construction and engineering stocks.
— Adverse stock selection compared to the Russell 2000 Index in the materials and consumer discretionary sectors also hindered relative performance.
| |||||
Mutual fund investing involves risk. Principal loss is possible. Investing in small cap companies involves additional risks, including greater fluctuations in value and lack of liquidity. These risks are more fully described in the prospectus. Although the Fund does not generally invest in initial public offerings (IPO’s), it has the ability to. Investment in IPO’s typically involve greater price volatility resulting in increased turnover and expenses as well as the potential for taxable gains. | ||||||
12 |
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
| ||||||||||||
RBC Enterprise Fund
| ||||||||||||
Long-term growth of capital.
| Investment Objective | |||||||||||
Russell 2000 Index
| Benchmark | |||||||||||
| Asset Allocation (as of 9/30/10) (% of fund’s investments) & Top Five Industries (as of 9/30/10) (% of fund’s net assets) | |||||||||||
Spectrum Control, Inc. | 4.48% | Steinway Musical Instruments | 3.59% | Top Ten Holdings (as of 9/30/10) (% of fund’s net assets) | ||||||||
LaBarge, Inc. | 4.19% | Columbus McKinnon Corp. | 3.46% | |||||||||
AZZ, Inc. | 3.90% | Universal Stainless & Alloy | 3.30% | |||||||||
Universal Electronics, Inc. | 3.84% | Casual Male Retail Group, Inc. | 2.73% | |||||||||
Sonic Solutions, Inc. | 3.79% | Xyratex Ltd. | 2.71% | |||||||||
*A listing of all portfolio holdings can be found beginning on page 23.
| ||||||||||||
| Growth of $10,000 Initial Investment Over 10 Years | |||||||||||
The graph reflects an initial investment of $10,000 over a 10 year period and is based on Class S shares. The performance of the Fund for the period from September 30, 1999 to April 19, 2004 reflects the performance of Babson Enterprise Fund, the predecessor to RBC Enterprise Fund. 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. |
13
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED) | ||||||
| ||||||
Investment Strategy | Seeks to provide superior long-term growth of capital compared to the Russell 2000 Index while taking a low risk approach to small company investing. The Adviser believes that portfolios of neglected small cap companies with low valuations, long-term attractive business fundamentals and near-term profitability improvement potential should produce strong absolute and risk-adjusted returns over time.
| |||||
Performance |
For the twelve-month period ended September 30, 2010, the Fund had a total return of 17.64% (Class S). That compares to a total return of 13.35% for the Russell 2000 Index, the Fund’s primary benchmark.
| |||||
Factors That Made Positive Contributions |
— Favorable stock selection was the primary factor in the Fund’s superior performance compared to the Russell 2000 for the one-year period.
— Favorable stock selection among information technology stocks was the most significant positive performance factor, most notably among electronic equipment, semiconductor equipment, and software makers.
— Positive industrials stock selection was also an important factor with special strength in machinery and commercial services and supplies companies.
— A sector underweight compared to the Russell 2000 in the poorly performing financials sector also contributed to the Fund’s above-benchmark performance.
| |||||
Factors That Detracted From Relative Returns |
— Adverse selection among health care stocks was a drag on performance for the one-year period.
— Within the health care sector, exposure to home health care providers and selection among equipment and supplies manufacturers were the most significant adverse performance factors.
— Within the materials sector, adverse stock selection in the chemicals industry was a slight detractor from relative performance.
| |||||
Mutual fund investing involves risk. Principal loss is possible. Investing in mid cap,small cap and micro cap companies involves additional risks, including greater fluctuations in value and lack of liquidity. These risks are more fully described in the prospectus. Although the Fund does not generally invest in initial public offerings (IPO’s), it has the ability to. Investment in IPO’s typically involve greater price volatility resulting in increased turnover and expenses as well as the potential for taxable gains. | ||||||
14 |
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
|
| |||||||||||||||||||
RBC Small Cap Core Fund
|
| |||||||||||||||||||
Long-term growth of capital and income.
| Investment Objective | |||||||||||||||||||
Russell 2000 Index
| Benchmark | |||||||||||||||||||
|
| Asset Allocation (as of 9/30/10) (% of fund’s investments) & Top Five Industries (as of 9/30/10) (% of fund’s net assets) | ||||||||||||||||||
Gardner Denver, Inc. | 4.08 | % | Xyratex Ltd. | 2.64 | % | Top Ten Holdings (as of 9/30/10) (% of fund’s net assets) | ||||||||||||||
Spectrum Control, Inc. | 3.46 | % | Universal Electronics, Inc. | 2.61 | % | |||||||||||||||
Sonic Solutions, Inc. | 3.23 | % | Universal Stainless & Alloy | 2.53 | % | |||||||||||||||
Nash Finch Co. | 2.77 | % | AZZ, Inc. | 2.51 | % | |||||||||||||||
Casual Male Retail Group, Inc. | 2.64 | % | Compass Diversified Holdings | 2.50 | % | |||||||||||||||
*A listing of all portfolio holdings can be found beginning on page 26.
| ||||||||||||||||||||
|
| Growth of $10,000 Initial Investment Over 10 Years | ||||||||||||||||||
The graph reflects an initial investment of $10,000 over a 10 year period and is based on Class S shares. The performance of the Fund for the period from September 30, 2000 to April 19, 2004 reflects the performance of Babson Enterprise Fund II, the predecessor to RBC Small Cap Core Fund. 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. |
15
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
| ||||||
| ||||||
Investment Strategy | Invests in a diversified portfolio of the smallest companies that have been neglected by institutional shareholders. Utilizing a quantitative process to identify value-oriented investments, the Fund strives to achieve long-term growth while seeking to offer shareholders some protection from market declines and fluctuations.
| |||||
Performance | For the twelve-month period ended September 30, 2010, the Fund had a total return of 11.33% (Class S). That compares to a total return of 11.84% for the Russell 2000 Value Index, the Fund’s primary benchmark.
| |||||
Factors That Made Positive Contributions |
— Favorable sector weightings provided the largest positive contribution to the Fund’s returns relative to the Russell 2000 value index for the one-year period.
— An underweight in the poorly performing financials sector and an overweight in the better performing consumer discretionary sector were the main positive contributors to relative performance.
— Favorable stock selection among energy and information technology stocks also boosted performance.
| |||||
Factors That Detracted From Relative Returns |
— The Fund’s concentration in microcap stocks hurt relative performance in a period when the Russell Microcap performance trailed the Russell 2000 Value Index
— Adverse stock selection among financials stocks was an important factor detracting from performance during the period. Selection among commercial bank stocks was especially negative.
— Adverse stock selection in the materials sector also detracted from relative performance
| |||||
Mutual fund investing involves risk. Principal loss is possible. Investing in micro cap companies involves additional risks, including greater fluctuations in value and lack of liquidity. These risks are more fully described in the prospectus. Although the Fund does not generally invest in initial public offerings (IPO’s), it has the ability to. Investment in IPO’s typically involve greater price volatility resulting in increased turnover and expenses as well as the potential for taxable gains. | ||||||
16 |
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
|
| |||||||||||||||||||
RBC Microcap Value Fund
| ||||||||||||||||||||
Long-term growth of capital.
| Investment Objective | |||||||||||||||||||
Russell 2000 Value Index
| Benchmark | |||||||||||||||||||
|
| Asset Allocation (as of 9/30/10) (% of fund’s investments) & Top Five Industries (as of 9/30/10) (% of fund’s net assets) | ||||||||||||||||||
Buckeye Technologies, Inc. | 0.65 | % | Ladish Co., Inc. | 0.59 | % | Top Ten Holdings (as of 9/30/10) (% of fund’s net assets) | ||||||||||||||
Meadowbrook Insurance Group,Inc. | 0.63 | % | Integrated Silicon Solution, Inc. | 0.55 | % | |||||||||||||||
Consolidated Graphics, Inc. | 0.62 | % | Insight Enterprises, Inc. | 0.53 | % | |||||||||||||||
Harvest Natural Resources, Inc. | 0.61 | % | Oplink Communications, Inc. | 0.52 | % | |||||||||||||||
American Equity Investment Life Holding Co. | 0.60 | % | Elizabeth Arden, Inc. | 0.52 | % | |||||||||||||||
*A listing of all portfolio holdings can be found beginning on page 29.
| ||||||||||||||||||||
|
| Growth of $10,000 Initial Investment Over 10 Years | ||||||||||||||||||
The graph reflects an initial investment of $10,000 over a 10 year period and is based on Class S shares. The performance of the Fund for the period from September 30, 2000 to April 19, 2004 reflects the performance of Shadow Stock Fund, the predecessor to RBC Microcap Value Fund. 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
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED) | ||||||
| ||||||
Investment Strategy | Seeks to provide superior long-term growth of capital while taking a low risk approach to small company investing. The Adviser believes that portfolios of neglected small cap companies with low valuations, long-term attractive business fundamentals and near-term profitability improvement potential should produce strong absolute and risk-adjusted returns over time.
| |||||
Performance | Since the Fund’s inception on December 31, 2009, the Fund had a total return of 8.00% (Class I) as of September 30, 2010. That compares to a total return of 11.15% for the Russell Midcap Value Index, the Fund’s primary benchmark.
| |||||
Factors That Made Positive Contributions |
— Overall stock selection was a positive contributor to the Funds’ performance during the period.
— Stock selection was particularly strong in the materials, industrials, energy and financials sectors.
— The Fund’s underweight in the poorer performing utilities sector was also a positive contributor to performance.
| |||||
Factors That Detracted From Relative Returns |
— Overall sector allocation, driven by an overweight in technology, had a negative impact on the Fund’s performance relative to its benchmark.
— An underweight in real estate investment trusts (REITs) also detracted from performance.
— Adverse stock selection in the technology sector also hindered relative performance.
| |||||
�� | ||||||
Mutual fund investing involves risk. Principal loss is possible. Investing in mid cap companies involves additional risks, including greater fluctuations in value and lack of liquidity. These risks are more fully described in the prospectus. Although the Fund does not generally invest in initial public offerings (IPO’s), it has the ability to. Investment in IPO’s typically involve greater price volatility resulting in increased turnover and expenses as well as the potential for taxable gains. | ||||||
18 |
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
|
| |||||||||||||||
RBC Mid Cap Value Fund
|
| |||||||||||||||
Long-term capital appreciation.
|
| Investment Objective | ||||||||||||||
Russell Mid Cap Value Index
|
| Benchmark | ||||||||||||||
| Asset Allocation (as of 9/30/10) (% of fund’s investments) & Top Five Industries (as of 9/30/10) (% of fund’s net assets) | |||||||||||||||
Reinsurance Group of America, Inc. | 4.38 | % | First Niagara Financial Group, Inc. | 2.46 | % | Top Ten Holdings (as of 9/30/10) (% of fund’s net assets) | ||||||||||
Kohl’s Corp. | 3.46 | % | Celanese Corp., Class A | 2.42 | % | |||||||||||
KKR Financial Holdings LLC REIT | 3.37 | % | Cameron International Corp. | 2.40 | % | |||||||||||
World Fuel Services Corp. | 3.07 | % | Crown Holdings, Inc. | 2.30 | % | |||||||||||
Tower Group, Inc. | 2.66 | % | ||||||||||||||
Emergency Medical Services Corp., Class A | 2.52 | % | ||||||||||||||
*A listing of all portfolio holdings can be found beginning on page 40.
| ||||||||||||||||
| Growth of $10,000 Initial Investment Since Inception (12/30/09) | |||||||||||||||
The graph reflects an initial investment of $10,000 over the period from December 30,2009 to September 30, 2010 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. |
19
SCHEDULE OF PORTFOLIO INVESTMENTS
|
September 30, 2010 | ||||||
Shares | Value | |||||
Common Stocks — 96.48% | ||||||
Consumer Discretionary — 13.58% | ||||||
8,200 | Capella Education Co.* | $ | 636,484 | |||
29,400 | Fossil, Inc.* | 1,581,426 | ||||
20,100 | Guess?, Inc. | 816,663 | ||||
56,160 | LKQ Corp.* | 1,168,128 | ||||
12,200 | Panera Bread Co., Class A* | 1,081,042 | ||||
22,700 | Ross Stores, Inc. | 1,239,874 | ||||
38,700 | Tractor Supply Co. | 1,534,842 | ||||
20,100 | WMS Industries, Inc.* | 765,207 | ||||
8,823,666 | ||||||
Consumer Staples — 3.46% | ||||||
10,100 | Church & Dwight Co., Inc. | 655,894 | ||||
10,400 | Ralcorp Holdings, Inc.* | 608,192 | ||||
29,700 | United Natural Foods, Inc.* | 984,258 | ||||
2,248,344 | ||||||
Energy — 4.52% | ||||||
15,100 | Dril-Quip, Inc.* | 937,861 | ||||
12,390 | Oceaneering International, Inc.* | 667,325 | ||||
17,400 | Oil States International, Inc.* | 809,970 | ||||
13,900 | Unit Corp.* | 518,331 | ||||
2,933,487 | ||||||
Financials — 6.24% | ||||||
21,800 | Eaton Vance Corp. | 633,072 | ||||
18,300 | Federated Investors, Inc., Class B | 416,508 | ||||
33,200 | HCC Insurance Holdings, Inc. | 866,188 | ||||
28,800 | Knight Capital Group, Inc., Class A* | 356,832 | ||||
34,100 | Raymond James Financial, Inc. | 863,753 | ||||
39,300 | Tower Group, Inc. | 917,655 | ||||
4,054,008 | ||||||
Health Care — 24.30% | ||||||
55,100 | Bruker Corp.* | 773,053 | ||||
33,700 | Catalyst Health Solutions, Inc.* | 1,186,577 | ||||
10,400 | Cerner Corp.* | 873,496 | ||||
12,200 | Charles River Laboratories International, Inc.* | 404,430 | ||||
20,500 | Edwards Lifesciences Corp.* | 1,374,525 | ||||
13,000 | Gen-Probe, Inc.* | 629,980 | ||||
18,600 | Henry Schein, Inc.* | 1,089,588 | ||||
14,800 | IDEXX Laboratories, Inc.* | 913,456 | ||||
15,600 | Integra LifeSciences Holdings Corp.* | 615,576 | ||||
7,800 | Laboratory Corp of America Holdings* | 611,754 | ||||
18,300 | Meridian Bioscience, Inc. | 400,404 | ||||
6,900 | Mettler-Toledo International, Inc.* | 858,636 |
20
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC SMID Cap Growth Fund (cont.)
September 30, 2010 | ||||||
Shares | Value | |||||
14,500 | MWI Veterinary Supply, Inc.* | $ | 836,940 | |||
21,500 | NuVasive, Inc.* | 755,510 | ||||
19,200 | Parexel International Corp.* | 444,096 | ||||
11,300 | Perrigo Co. | 725,686 | ||||
25,600 | Pharmaceutical Product Development, Inc. | 634,624 | ||||
10,400 | Varian Medical Systems, Inc.* | 629,200 | ||||
27,500 | Volcano Corp.* | 714,450 | ||||
12,200 | Waters Corp.* | 863,516 | ||||
13,000 | West Pharmaceutical Services, Inc. | 446,030 | ||||
15,781,527 | ||||||
Industrials — 17.73% | ||||||
10,400 | Alliant Techsystems, Inc.* | 784,160 | ||||
22,700 | AMETEK, Inc. | 1,084,379 | ||||
16,520 | Donaldson Co., Inc. | 778,588 | ||||
15,180 | Expeditors International of Washington, Inc. | 701,771 | ||||
8,100 | Flowserve Corp. | 886,302 | ||||
11,740 | Huron Consulting Group, Inc.* | 258,163 | ||||
12,200 | Jacobs Engineering Group, Inc.* | 472,140 | ||||
15,700 | Landstar System, Inc. | 606,334 | ||||
18,300 | MSC Industrial Direct Co., Class A | 988,932 | ||||
15,490 | Roper Industries, Inc. | 1,009,638 | ||||
14,000 | Stericycle, Inc.* | 972,720 | ||||
15,400 | Teledyne Technologies, Inc.* | 613,228 | ||||
18,200 | Towers Watson & Co., Class A | 895,076 | ||||
15,600 | Waste Connections, Inc.* | 618,696 | ||||
26,100 | Woodward Governor Co. | 846,162 | ||||
11,516,289 | ||||||
Information Technology — 23.13% | ||||||
28,600 | Akamai Technologies, Inc.* | 1,435,148 | ||||
32,800 | Altera Corp. | 989,248 | ||||
15,820 | ANSYS, Inc.* | 668,395 | ||||
27,810 | Autodesk, Inc.* | 889,086 | ||||
14,800 | Comtech Telecommunications Corp.* | 404,780 | ||||
25,200 | Digital River, Inc.* | 857,808 | ||||
14,840 | Dolby Laboratories, Inc., Class A* | 843,060 | ||||
16,200 | F5 Networks, Inc.* | 1,681,722 | ||||
18,300 | Global Payments, Inc. | 784,887 | ||||
30,700 | Logitech International SA* | 534,180 | ||||
10,400 | Mantech International Corp., Class A* | 411,840 | ||||
25,250 | Microchip Technology, Inc. | 794,113 | ||||
26,100 | MICROS Systems, Inc.* | 1,104,813 | ||||
18,300 | National Instruments Corp. | 597,678 | ||||
18,300 | Open Text Corp.* | 860,832 | ||||
33,700 | Riverbed Technology, Inc.* | 1,536,046 |
21
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC SMID Cap Growth Fund (cont.)
September 30, 2010 | ||||||
Shares | Value | |||||
25,300
| Synopsys, Inc.*
| $
| 626,681
|
| ||
15,020,317 | ||||||
Materials — 3.52% | ||||||
16,800 | AptarGroup, Inc. | 767,256 | ||||
15,400 | Reliance Steel & Aluminum Co. | 639,562 | ||||
14,600 | Sigma-Aldrich Corp. | 881,548 | ||||
2,288,366 | ||||||
Total Common Stocks | 62,666,004 | |||||
(Cost $50,600,235) | ||||||
Investment Company — 2.71% | ||||||
1,756,585 | JPMorgan Prime Money Market Fund | 1,756,585 | ||||
Total Investment Company | 1,756,585 | |||||
(Cost $1,756,585) | ||||||
Total Investments | $ | 64,422,589 | ||||
(Cost $52,356,820)(a) — 99.19% | ||||||
Other assets in excess of liabilities — 0.81% | 527,861 | |||||
NET ASSETS — 100.00% | $ | 64,950,450 | ||||
* | Non-income producing security. | |
(a) | See notes to financial statements for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
See notes to financial statements.
22
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Enterprise Fund
September 30, 2010 | ||||||
Shares | Value | |||||
Common Stocks — 96.42% | ||||||
Consumer Discretionary — 17.46% | ||||||
428,178 | Benihana, Inc., Class A* | $ | 3,249,871 | |||
72,800 | Books-A-Million, Inc. | 436,800 | ||||
160,250 | Cache, Inc.* | 817,275 | ||||
932,773 | Casual Male Retail Group, Inc.* | 3,805,714 | ||||
62,200 | Delta Apparel, Inc.* | 933,000 | ||||
109,600 | Furniture Brands International, Inc.* | 589,648 | ||||
83,630 | Mac-Gray Corp. | 1,014,432 | ||||
36,391 | Movado Group, Inc.* | 395,934 | ||||
41,000 | Red Robin Gourmet Burgers, Inc.* | 804,010 | ||||
176,400 | RG Barry Corp. | 1,815,156 | ||||
290,656 | Steinway Musical Instruments* | 5,005,096 | ||||
27,150 | Tefron Ltd.* | 95,025 | ||||
256,700 | Universal Electronics, Inc.* | 5,352,195 | ||||
24,314,156 | ||||||
Energy — 2.40% | ||||||
28,000 | Gulf Island Fabrication, Inc. | 509,600 | ||||
94,800 | Gulfport Energy Corp.* | 1,312,032 | ||||
14,954 | OYO Geospace Corp.* | 865,538 | ||||
54,300 | Tesco Corp.* | 653,229 | ||||
3,340,399 | ||||||
Financials — 9.55% | ||||||
294,300 | Asta Funding, Inc. | 2,245,509 | ||||
96,100 | Boston Private Financial Holdings, Inc. | 628,494 | ||||
91,059 | CoBiz Financial, Inc. | 506,288 | ||||
194,900 | Compass Diversified Holdings | 3,149,584 | ||||
65,000 | Cypress Sharpridge Investments, Inc. REIT | 867,750 | ||||
68,800 | Firstcity Financial Corp.* | 556,592 | ||||
32,000 | LaSalle Hotel Properties REIT | 748,480 | ||||
34,626 | Mercantile Bank Corp. | 156,856 | ||||
95,389 | MetroCorp Bancshares, Inc.* | 268,043 | ||||
93,000 | National Interstate Corp. | 2,024,610 | ||||
60,374 | Northrim BanCorp, Inc. | 1,002,208 | ||||
63,900 | SWS Group, Inc. | 458,163 | ||||
50,000 | Washington Banking Co. | 693,000 | ||||
13,305,577 | ||||||
Health Care — 9.32% | ||||||
48,400 | America Service Group, Inc. | 720,192 | ||||
73,200 | BioScrip, Inc.* | 377,712 | ||||
93,200 | Exactech, Inc.* | 1,521,024 | ||||
8,032 | HMS Holdings Corp.* | 473,406 | ||||
123,700 | Kensey Nash Corp.* | 3,573,693 | ||||
16,400 | Landauer, Inc. | 1,027,132 | ||||
55,200 | LHC Group, Inc.* | 1,280,088 |
23
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Enterprise Fund (cont.)
September 30, 2010 | ||||||
Shares | Value | |||||
83,700 | Meridian Bioscience, Inc. | $ | 1,831,356 | |||
73,100 | Symmetry Medical, Inc.* | 704,684 | ||||
87,500 | US Physical Therapy, Inc.* | 1,463,000 | ||||
12,972,287 | ||||||
Industrials — 22.30% | ||||||
100,900 | Acacia Research - Acacia Technologies* | 1,775,840 | ||||
111,456 | Allied Defense Group, Inc. (The)* | 268,609 | ||||
126,700 | AZZ, Inc. | 5,427,828 | ||||
573,000 | C&D Technologies, Inc.* | 169,896 | ||||
290,225 | Columbus McKinnon Corp.* | 4,814,833 | ||||
185,000 | Eagle Bulk Shipping, Inc.* | 965,700 | ||||
61,200 | Ennis, Inc. | 1,094,868 | ||||
97,300 | Greenbrier Cos., Inc.* | 1,516,907 | ||||
26,900 | Hurco Cos, Inc.* | 486,083 | ||||
70,000 | Kimball International, Inc., Class B | 408,100 | ||||
466,894 | LaBarge, Inc.* | 5,831,506 | ||||
19,000 | Marten Transport Ltd. | 440,420 | ||||
49,300 | NN, Inc.* | 406,725 | ||||
133,333 | OceanFreight, Inc.* | 126,666 | ||||
42,150 | Old Dominion Freight Line, Inc.* | 1,071,453 | ||||
152,700 | Orion Marine Group, Inc.* | 1,895,007 | ||||
406,000 | PGT, Inc.* | 925,680 | ||||
21,273 | Powell Industries, Inc.* | 662,016 | ||||
63,674 | Standard Parking Corp.* | 1,088,825 | ||||
32,500 | Sun Hydraulics Corp. | 916,175 | ||||
135,800 | TBS International PLC, Class A* | 753,690 | ||||
31,046,827 | ||||||
Information Technology — 24.98% | ||||||
186,682 | Aspen Technology, Inc.* | 1,935,892 | ||||
84,974 | Computer Task Group, Inc.* | 649,201 | ||||
41,377 | Comtech Telecommunications Corp.* | 1,131,661 | ||||
274,002 | DivX, Inc.* | 2,611,239 | ||||
153,585 | EMS Technologies, Inc.* | 2,861,289 | ||||
134,400 | Interactive Intelligence, Inc.* | 2,365,440 | ||||
524,238 | Lionbridge Technologies, Inc.* | 2,254,223 | ||||
399,800 | NIC, Inc. | 3,314,342 | ||||
463,411 | Sonic Solutions, Inc.* | 5,273,617 | ||||
424,183 | Spectrum Control, Inc.* | 6,243,974 | ||||
117,500 | Tyler Technologies, Inc.* | 2,368,800 | ||||
254,000 | Xyratex Ltd.* | 3,769,360 | ||||
34,779,038 | ||||||
Materials — 8.09% | ||||||
467,116 | Intertape Polymer Group, Inc.* | 705,345 | ||||
101,700 | Koppers Holdings, Inc. | 2,732,679 | ||||
179,800 | Landec Corp.* | 1,116,558 |
24
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Enterprise Fund (cont.)
September 30, 2010
Shares | Value | |||||||
294,900 | Omnova Solutions, Inc.* | $ | 2,120,331 | |||||
187,088 | Universal Stainless & Alloy* | 4,594,881 | ||||||
11,269,794 | ||||||||
| Utilities — 2.32% | |||||||
88,700 | Central Vermont Public Service Corp. | 1,789,079 | ||||||
65,800 | Unitil Corp. | 1,444,310 | ||||||
3,233,389 | ||||||||
| Total Common Stocks | 134,261,467 | ||||||
(Cost $121,040,120) | ||||||||
| Exchange Traded Fund — 1.79% | |||||||
108,500 | SPDR KBW Regional Banking | 2,485,735 | ||||||
| Total Exchange Traded Fund | 2,485,735 | ||||||
(Cost $2,781,485) | ||||||||
| Warrants/Rights — 0.00% | |||||||
6,203 | US Concrete, Inc. Warrants, Expire 8/31/17*(a)(b) | 0 | ||||||
6,203 | US Concrete, Inc. Warrants, Expire 8/31/17*(a)(b) | 0 | ||||||
| Total Warrants/Rights | 0 | ||||||
(Cost $0) | ||||||||
| Investment Company — 1.05% | |||||||
1,464,168 | JPMorgan Prime Money Market Fund | 1,464,168 | ||||||
| Total Investment Company | 1,464,168 | ||||||
(Cost $1,464,168) | ||||||||
| Total Investments | $ | 138,211,370 | |||||
(Cost $125,285,773)(c) — 99.26% | ||||||||
| Other assets in excess of liabilities — 0.74% | 1,028,716 | ||||||
| NET ASSETS — 100.00% | $ | 139,240,086 | |||||
* | Non-income producing security. |
(a) | Fair valued security under procedures established by the Fund’s Board of Trustees. |
(b) | This security is restricted and illiquid as the security may not be offered or sold within the United States or to U.S. persons except to qualified purchasers who are also either qualified institutional buyers or “accredited investors” (as defined in Rule 501 (a) of Regulation D under the Securities Act of 1933). |
(c) | See notes to financial statements for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Abbreviations used are defined below:
REIT - Real Estate Investment Trust
See notes to financial statements.
25
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Small Cap Core Fund
September 30, 2010 | ||||||
Shares | Value | |||||
Common Stocks — 97.51% | ||||||
Consumer Discretionary — 15.66% | ||||||
76,019 | Benihana, Inc., Class A* | $ | 576,984 | |||
285,200 | Casual Male Retail Group, Inc.* | 1,163,616 | ||||
24,600 | Dress Barn, Inc.* | 584,250 | ||||
21,900 | Drew Industries, Inc.* | 456,834 | ||||
35,500 | Furniture Brands International, Inc.* | 190,990 | ||||
7,600 | Jo-Ann Stores, Inc.* | 338,580 | ||||
62,707 | Steinway Musical Instruments* | 1,079,814 | ||||
9,750 | Steven Madden Ltd.* | 400,335 | ||||
44,900 | True Religion Apparel, Inc.* | 958,166 | ||||
55,123 | Universal Electronics, Inc.* | 1,149,315 | ||||
6,898,884 | ||||||
Consumer Staples — 4.67% | ||||||
8,700 | Alberto-Culver Co. | 327,555 | ||||
28,700 | Nash Finch Co. | 1,220,898 | ||||
45,200 | Sally Beauty Holdings, Inc.* | 506,240 | ||||
2,054,693 | ||||||
Energy — 4.13% | ||||||
1,500 | CARBO Ceramics, Inc. | 121,500 | ||||
31,200 | Georesources, Inc.* | 496,080 | ||||
7,300 | Tesco Corp.* | 87,819 | ||||
15,700 | Willbros Group, Inc.* | 143,969 | ||||
37,300 | World Fuel Services Corp. | 970,173 | ||||
1,819,541 | ||||||
Financials — 10.68% | ||||||
32,100 | Amerisafe, Inc.* | 602,838 | ||||
42,300 | Ares Capital Corp. | 661,995 | ||||
55,027 | Asta Funding, Inc. | 419,856 | ||||
68,100 | Compass Diversified Holdings | 1,100,496 | ||||
14,900 | Cypress Sharpridge Investments, Inc. REIT | 198,915 | ||||
25,725 | Delphi Financial Group, Inc., Class A | 642,868 | ||||
11,900 | LaSalle Hotel Properties REIT | 278,341 | ||||
8,500 | ProAssurance Corp.* | 489,515 | ||||
21,500 | SeaBright Insurance Holdings, Inc. | 173,290 | ||||
10,200 | SWS Group, Inc. | 73,134 | ||||
4,072 | Trico Bancshares | 62,587 | ||||
4,703,835 | ||||||
Health Care — 8.37% | ||||||
7,200 | Amedisys, Inc.* | 171,360 | ||||
12,000 | Emergency Medical Services Corp., Class A* | 639,000 | ||||
10,600 | Invacare Corp. | 281,006 | ||||
11,000 | Kinetic Concepts, Inc.* | 402,380 | ||||
22,300 | Meridian Bioscience, Inc. | 487,924 |
26
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Small Cap Core Fund (cont.)
September 30, 2010 | ||||||
Shares | Value | |||||
36,075 | PSS World Medical, Inc.* | $ | 771,283 | |||
30,800 | Symmetry Medical, Inc.* | 296,912 | ||||
18,500 | West Pharmaceutical Services, Inc. | 634,735 | ||||
3,684,600 | ||||||
Industrials — 24.59% | ||||||
82,800 | ACCO Brands Corp.* | 476,100 | ||||
6,400 | American Science & Engineering, Inc. | 471,360 | ||||
27,700 | ArvinMeritor, Inc.* | 430,458 | ||||
9,700 | Atlas Air Worldwide Holdings, Inc.* | 487,910 | ||||
25,808 | AZZ, Inc. | 1,105,615 | ||||
155,200 | C&D Technologies, Inc.* | 46,017 | ||||
13,700 | Chart Industries, Inc.* | 278,932 | ||||
61,200 | Columbus McKinnon Corp.* | 1,015,308 | ||||
33,500 | Gardner Denver, Inc. | 1,798,280 | ||||
37,200 | Greenbrier Cos., Inc.* | 579,948 | ||||
15,500 | II-VI, Inc.* | 578,615 | ||||
40,600 | Insteel Industries, Inc. | 364,588 | ||||
63,900 | Interface, Inc., Class A | 909,297 | ||||
25,600 | Knoll, Inc. | 397,056 | ||||
13,900 | LB Foster Co., Class A* | 402,266 | ||||
10,200 | Marten Transport Ltd. | 236,436 | ||||
10,200 | Old Dominion Freight Line, Inc.* | 259,284 | ||||
6,878 | Powell Industries, Inc.* | 214,043 | ||||
7,800 | Sun Hydraulics Corp. | 219,882 | ||||
11,700 | Wabtec Corp. | 559,143 | ||||
10,830,538 | ||||||
Information Technology — 20.42% | ||||||
6,800 | ADC Telecommunications, Inc.* | 86,156 | ||||
46,500 | Aspen Technology, Inc.* | 482,205 | ||||
19,300 | Checkpoint Systems, Inc.* | 392,755 | ||||
11,100 | Comtech Telecommunications Corp.* | 303,585 | ||||
24,924 | DivX, Inc.* | 237,526 | ||||
30,300 | EMS Technologies, Inc.* | 564,489 | ||||
20,200 | InterDigital, Inc.* | 598,122 | ||||
58,200 | NIC, Inc. | 482,478 | ||||
34,100 | Skyworks Solutions, Inc.* | 705,188 | ||||
124,842 | Sonic Solutions, Inc.* | 1,420,702 | ||||
103,400 | Spectrum Control, Inc.* | 1,522,048 | ||||
38,200 | STEC, Inc.* | 475,590 | ||||
27,800 | Tyler Technologies, Inc.* | 560,448 | ||||
78,500 | Xyratex Ltd.* | 1,164,940 | ||||
8,996,232 | ||||||
Materials — 6.91% | ||||||
59,900 | Intertape Polymer Group, Inc.* | 90,449 | ||||
33,200 | Koppers Holdings, Inc. | 892,084 |
27
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Small Cap Core Fund (cont.)
September 30, 2010 | ||||||
Shares | Value | |||||
71,800 | Omnova Solutions, Inc.* | $ | 516,242 | |||
13,700 | Rockwood Holdings, Inc.* | 431,139 | ||||
45,400 | Universal Stainless & Alloy* | 1,115,024 | ||||
3,044,938 | ||||||
Utilities — 2.08% | ||||||
9,900 | Energen Corp. | 452,628 | ||||
13,900 | Unisource Energy Corp. | 464,677 | ||||
917,305 | ||||||
Total Common Stocks | 42,950,566 | |||||
(Cost $32,054,852) | ||||||
Investment Company — 1.56% | ||||||
685,792 | JPMorgan Prime Money Market Fund | 685,792 | ||||
Total Investment Company | 685,792 | |||||
(Cost $685,792) | ||||||
Total Investments | $ | 43,636,358 | ||||
(Cost $32,740,644)(a) — 99.07% | ||||||
Other assets in excess of liabilities — 0.93% | 409,042 | |||||
NET ASSETS — 100.00% | $ | 44,045,400 | ||||
* | Non-income producing security. |
(a) | See notes to financial statements for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Abbreviations | used are defined below: |
REIT - Real Estate Investment Trust
See notes to financial statements.
28
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Microcap Value Fund
September 30, 2010 | ||||||
Shares | Value | |||||
Common Stocks — 94.92% | ||||||
Consumer Discretionary — 19.71% | ||||||
96,000 | Adams Golf, Inc.* | $ | 410,880 | |||
3,725 | Ambassadors International, Inc.* | 6,705 | ||||
15,500 | America’s Car-Mart, Inc.* | 390,290 | ||||
48,000 | Arctic Cat, Inc.* | 492,000 | ||||
40,000 | Asbury Automotive Group, Inc.* | 562,800 | ||||
69,000 | Audiovox Corp., Class A* | 471,960 | ||||
69,000 | Benihana, Inc., Class A* | 523,710 | ||||
900 | Biglari Holdings, Inc.* | 295,785 | ||||
69,000 | Bluegreen Corp.* | 192,510 | ||||
7,000 | Blyth, Inc. | 288,680 | ||||
46,000 | Books-A-Million, Inc. | 276,000 | ||||
15,127 | Bowl America, Inc., Class A | 186,667 | ||||
72,000 | Build-A-Bear Workshop, Inc.* | 435,600 | ||||
44,000 | Carriage Services, Inc.* | 220,440 | ||||
40,000 | Christopher & Banks Corp. | 316,400 | ||||
15,000 | Core-Mark Holding Co., Inc.* | 464,400 | ||||
99,000 | Craftmade International, Inc.* | 514,800 | ||||
29,000 | CSS Industries, Inc. | 501,410 | ||||
38,000 | Delta Apparel, Inc.* | 570,000 | ||||
17,700 | Dorman Products, Inc.* | 545,514 | ||||
11,000 | DSW, Inc., Class A* | 315,700 | ||||
17,500 | Duckwall-ALCO Stores, Inc.* | 228,550 | ||||
31,000 | Entercom Communications Corp., Class A* | 243,660 | ||||
33,000 | Finish Line, Inc. (The), Class A | 459,030 | ||||
34,000 | Flexsteel Industries | 521,560 | ||||
40,000 | Fred’s, Inc., Class A | 472,000 | ||||
85,000 | Golfsmith International Holdings, Inc.* | 247,350 | ||||
17,000 | Group 1 Automotive, Inc.* | 507,960 | ||||
64,000 | Hastings Entertainment, Inc.* | 434,560 | ||||
21,000 | Helen of Troy Ltd.* | 531,090 | ||||
31,000 | Hooker Furniture Corp. | 360,530 | ||||
50,000 | HOT Topic, Inc. | 299,500 | ||||
65,000 | Isle of Capri Casinos, Inc.* | 465,400 | ||||
35,000 | Jakks Pacific, Inc.* | 617,400 | ||||
24,000 | Johnson Outdoors, Inc., Class A* | 307,680 | ||||
82,000 | Journal Communications, Inc., Class A* | 369,820 | ||||
36,000 | Kid Brands, Inc.* | 309,600 | ||||
50,310 | Lakeland Industries, Inc.* | 460,337 | ||||
17,000 | Landry’s Restaurants, Inc.* | 416,330 | ||||
95,270 | Lazare Kaplan International, Inc.* | 85,743 | ||||
57,000 | La-Z-Boy, Inc.* | 481,080 | ||||
31,000 | Lifetime Brands, Inc.* | 468,100 | ||||
43,000 | Lithia Motors, Inc., Class A | 412,370 | ||||
61,000 | Luby’s, Inc.* | 294,020 | ||||
33,000 | Mac-Gray Corp. | 400,290 |
29
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Microcap Value Fund (cont.)
September 30, 2010
Shares | Value | |||||
33,000 | Marcus Corp. | $ | 391,050 | |||
23,000 | MarineMax, Inc.* | 161,920 | ||||
53,000 | McCormick & Schmick’s Seafood Restaurants, Inc.* | 412,340 | ||||
7,500 | McRae Industries, Inc., Class A | 93,450 | ||||
26,000 | Media General, Inc., Class A* | 232,960 | ||||
16,000 | Meritage Homes Corp.* | 313,920 | ||||
21,300 | Mestek, Inc.* | 181,050 | ||||
20,000 | Modine Manufacturing Co.* | 259,400 | ||||
34,400 | Movado Group, Inc.* | 374,272 | ||||
18,300 | Nobel Learning Communities, Inc.* | 126,453 | ||||
10,300 | Nobility Homes, Inc.* | 97,335 | ||||
32,000 | O’Charleys, Inc.* | 230,080 | ||||
41,000 | Orleans Homebuilders, Inc.* | 5,125 | ||||
13,000 | Oxford Industries, Inc. | 309,140 | ||||
27,350 | Perry Ellis International, Inc.* | 597,598 | ||||
135,000 | Point.360* | 155,250 | ||||
90,600 | Radio One, Inc., Class D* | 79,737 | ||||
28,000 | RC2 Corp.* | 586,600 | ||||
56,000 | Red Lion Hotels Corp.* | 416,640 | ||||
37,550 | Rex Stores Corp.* | 544,099 | ||||
40,000 | Rocky Brands, Inc.* | 304,800 | ||||
59,000 | Ruby Tuesday, Inc.* | 700,330 | ||||
20,000 | Saga Communications, Inc., Class A* | 406,000 | ||||
45,150 | Salem Communications Corp., Class A* | 134,095 | ||||
54,000 | Shiloh Industries, Inc.* | 522,720 | ||||
40,000 | Stage Stores, Inc. | 520,000 | ||||
57,000 | Standard Motor Products, Inc. | 600,210 | ||||
44,000 | Stein Mart, Inc.* | 388,520 | ||||
26,000 | Steinway Musical Instruments* | 447,720 | ||||
98,000 | Stewart Enterprises, Inc., Class A | 528,220 | ||||
16,000 | Stoneridge, Inc.* | 168,160 | ||||
17,000 | Strattec Security Corp.* | 423,980 | ||||
12,000 | Sturm Ruger & Co, Inc. | 163,680 | ||||
27,000 | Superior Industries International, Inc. | 466,560 | ||||
23,000 | Syms Corp.* | 176,410 | ||||
46,000 | Systemax, Inc. | 564,880 | ||||
75,000 | Trans World Entertainment Corp.* | 127,500 | ||||
50,000 | Tuesday Morning Corp.* | 238,500 | ||||
30,000 | Universal Travel Group* | 133,200 | ||||
20,000 | Walking Co. Holdings, Inc. (The)* | 29,000 | ||||
13,400 | Weyco Group, Inc. | 324,548 | ||||
30,313,663 | ||||||
Consumer Staples — 3.65% | ||||||
17,600 | Andersons, Inc. (The) | 667,040 | ||||
66,000 | Central Garden and Pet Co.* | 681,780 | ||||
36,000 | Chiquita Brands International, Inc.* | 476,640 | ||||
40,000 | Elizabeth Arden, Inc.* | 799,600 |
30
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Microcap Value Fund (cont.)
September 30, 2010
Shares | Value | |||||
43,000 | Ingles Markets, Inc., Class A | $ | 714,230 | |||
143,000 | ML Macadamia Orchards LP* | 358,930 | ||||
10,000 | Nash Finch Co. | 425,400 | ||||
69,000 | Omega Protein Corp.* | 396,060 | ||||
49,000 | Prestige Brands Holdings, Inc.* | 484,610 | ||||
35,000 | Schiff Nutrition International, Inc. | 287,000 | ||||
22,000 | Spartan Stores, Inc. | 319,000 | ||||
5,610,290 | ||||||
Energy — 3.62% | ||||||
44,000 | Bronco Drilling Co., Inc.* | 175,560 | ||||
33,000 | Calumet Specialty Products Partners LP | 650,760 | ||||
31,000 | Constellation Energy Partners LLC* | 89,280 | ||||
11,615 | Enbridge Energy Management LLC(a) | 640,824 | ||||
9,000 | Global Partners LP | 224,730 | ||||
90,000 | Harvest Natural Resources, Inc.* | 937,800 | ||||
17,000 | Hornbeck Offshore Services, Inc.* | 331,330 | ||||
42,000 | Knightsbridge Tankers Ltd. | 793,800 | ||||
15,802 | Natural Gas Services Group, Inc.* | 233,396 | ||||
60,000 | Newpark Resources, Inc.* | 504,000 | ||||
30,000 | North American Energy Partners, Inc.* | 244,500 | ||||
14,600 | PHI, Inc.* | 229,074 | ||||
20,000 | PHI, Inc., Non voting* | 323,600 | ||||
14,000 | Teekay Tankers, Ltd., Class A | 182,140 | ||||
110,300 | Trico Marine Services, Inc.* | 18,310 | ||||
5,579,104 | ||||||
Financials — 21.30% | ||||||
70,000 | 21st Century Holding Co. | 244,300 | ||||
40,000 | Affirmative Insurance Holdings, Inc.* | 144,000 | ||||
9,000 | Agree Realty Corp. REIT | 227,250 | ||||
90,000 | American Equity Investment Life Holding Co. | 921,600 | ||||
75,000 | American Independence Corp.* | 360,000 | ||||
23,000 | American Safety Insurance Holdings Ltd.* | 375,820 | ||||
39,190 | Ameris Bancorp* | 366,427 | ||||
86,000 | Asta Funding, Inc. | 656,180 | ||||
21,000 | Baldwin & Lyons, Inc., Class B | 534,450 | ||||
14,500 | Bancinsurance Corp. | 118,030 | ||||
16,000 | Banco Latinoamericano de Comercio Exterior SA | 231,200 | ||||
70,600 | Bancorp, Inc.* | 472,314 | ||||
65,600 | Banner Corp. | 141,696 | ||||
100,000 | Beverly Hills Bancorp, Inc.*(a) | 1,050 | ||||
45,000 | California First National Bancorp | 570,150 | ||||
21,000 | Camco Financial Corp.* | 41,370 | ||||
5,200 | Capital Southwest Corp. | 472,160 | ||||
38,000 | Capitol Bancorp Ltd.* | 42,940 | ||||
25,000 | Citizens South Banking Corp. | 112,500 | ||||
48,150 | Citizens, Inc.* | 331,753 |
31
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Microcap Value Fund (cont.)
September 30, 2010
Shares | Value | |||||
133,000 | Consumer Portfolio Services* | $ | 118,370 | |||
15,000 | Cypress Sharpridge Investments, Inc. REIT | 200,250 | ||||
39,777 | Donegal Group, Inc., Class A | 519,885 | ||||
8,444 | Donegal Group, Inc., Class B | 143,548 | ||||
20,000 | Duff & Phelps Corp., Class A | 269,400 | ||||
68,040 | Dynex Capital, Inc. REIT | 733,471 | ||||
31,000 | EMC Insurance Group, Inc. | 660,920 | ||||
20,000 | Federal Agricultural Mortgage Corp., Class C | 216,400 | ||||
34,300 | First Defiance Financial Corp. | 345,744 | ||||
11,000 | First Financial Corp. | 324,500 | ||||
45,400 | First Financial Holdings, Inc. | 505,756 | ||||
58,000 | First Industrial Realty Trust, Inc. REIT* | 294,060 | ||||
54,000 | First Merchants Corp. | 412,020 | ||||
4,000 | First Mercury Financial Corp. | 40,320 | ||||
47,200 | First Pactrust Bancorp, Inc. | 505,040 | ||||
38,000 | First Place Financial Corp.* | 143,640 | ||||
42,000 | First State Bancorp* | 6,090 | ||||
25,000 | Firstcity Financial Corp.* | 202,250 | ||||
6,600 | Flagstar Bancorp, Inc.* | 12,012 | ||||
45,000 | FNB United Corp.* | 31,500 | ||||
21,500 | FPIC Insurance Group, Inc.* | 754,435 | ||||
62,000 | Franklin Bank Corp.* | 105 | ||||
2,250 | FRMO Corp.* | 4,297 | ||||
45,000 | Gladstone Investment Corp. | 301,500 | ||||
50,400 | Green Bankshares, Inc.* | 342,216 | ||||
108,000 | Guaranty Bancorp* | 171,720 | ||||
36,850 | Hampton Roads Bankshares, Inc.* | 35,247 | ||||
59,528 | Hercules Technology Growth Capital, Inc. | 601,828 | ||||
38,000 | HF Financial Corp. | 399,000 | ||||
36,000 | Independence Holding Co. | 252,720 | ||||
13,000 | Indiana Community Bancorp | 168,090 | ||||
12,000 | Infinity Property & Casualty Corp. | 585,240 | ||||
31,000 | Intervest Bancshares Corp., Class A* | 65,100 | ||||
8,300 | Investors Title Co. | 282,200 | ||||
24,000 | Jefferson Bancshares, Inc. | 82,800 | ||||
23,800 | JMP Group, Inc. | 145,180 | ||||
17,000 | Kansas City Life Insurance Co. | 530,230 | ||||
36,930 | LaBranche & Co., Inc.* | 144,027 | ||||
11,000 | LSB Corp. | 229,900 | ||||
53,000 | Marlin Business Services Corp.* | 636,000 | ||||
23,294 | Mass Financial Corp., Class A* | 173,540 | ||||
108,000 | MCG Capital Corp. | 630,720 | ||||
108,750 | Meadowbrook Insurance Group, Inc. | 975,488 | ||||
62,000 | Medallion Financial Corp. | 482,980 | ||||
40,000 | Mercer Insurance Group, Inc. | 712,000 | ||||
136,000 | MicroFinancial, Inc. | 534,480 | ||||
52,100 | MutualFirst Financial, Inc. | 400,649 | ||||
5,300 | National Security Group, Inc. | 61,109 |
32
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Microcap Value Fund (cont.)
September 30, 2010
Shares | Value | |||||
4,800 | National Western Life Insurance Co., Class A | $ | 675,264 | |||
16,400 | Navigators Group, Inc.* | 731,932 | ||||
43,000 | NGP Capital Resources Co. | 389,580 | ||||
44,000 | Nicholas Financial, Inc.* | 407,880 | ||||
16,000 | NYMAGIC, Inc. | 410,720 | ||||
67,400 | Old Second Bancorp, Inc. | 94,360 | ||||
15,000 | One Liberty Properties, Inc. REIT | 238,650 | ||||
9,034 | Onebeacon Insurance Group, Ltd., Class A | 129,096 | ||||
4,700 | Oppenheimer Holdings, Inc., Class A | 131,365 | ||||
18,000 | Pacific Mercantile Bancorp* | 55,800 | ||||
19,000 | Parkway Properties, Inc. REIT | 281,200 | ||||
29,000 | Peoples Bancorp, Inc. | 358,730 | ||||
15,000 | PMA Capital Corp., Class A* | 113,100 | ||||
37,900 | PMC Commercial Trust REIT | 329,730 | ||||
40,000 | Presidential Life Corp. | 392,000 | ||||
58,705 | Prospect Capital Corp. | 570,026 | ||||
19,000 | Provident Financial Holdings, Inc. | 111,150 | ||||
20,000 | Ramco-Gershenson Properties Trust REIT | 214,200 | ||||
66,662 | Reis, Inc.* | 431,970 | ||||
29,000 | Resource America, Inc., Class A | 164,720 | ||||
16,000 | Safety Insurance Group, Inc. | 672,320 | ||||
50,000 | Sanders Morris Harris Group, Inc. | 283,000 | ||||
42,000 | SeaBright Insurance Holdings, Inc. | 338,520 | ||||
109,000 | Signature Group Holdings, Inc.* | 75,210 | ||||
21,000 | Simmons First National Corp., Class A | 593,670 | ||||
32,000 | Southern Community Financial Corp.* | 56,000 | ||||
48,300 | Southwest Bancorp, Inc. | 626,451 | ||||
25,000 | Sterling Bancorp NY | 217,250 | ||||
75,600 | Sun Bancorp, Inc.* | 385,560 | ||||
46,500 | SWS Group, Inc. | 333,405 | ||||
54,000 | TierOne Corp.* | 432 | ||||
68,000 | Unico American Corp. | 612,680 | ||||
99,716 | United Community Financial Corp.* | 132,622 | ||||
19,000 | United Western Bancorp, Inc.* | 7,790 | ||||
29,000 | Winthrop Realty Trust REIT | 358,440 | ||||
4,600 | Ziegler Cos., Inc. (The)* | 83,812 | ||||
32,761,802 | ||||||
Health Care — 5.65% | ||||||
17,000 | Air Methods Corp.* | 706,860 | ||||
34,000 | Albany Molecular Research, Inc.* | 216,920 | ||||
128,000 | Allied Healthcare International, Inc.* | 320,000 | ||||
11,000 | American Shared Hospital Services* | 33,880 | ||||
43,000 | Angiodynamics, Inc.* | 655,320 | ||||
4,100 | Assisted Living Concepts, Inc., Class A* | 124,804 | ||||
77,000 | BioScrip, Inc.* | 397,320 | ||||
45,000 | Cantel Medical Corp. | 729,000 | ||||
14,700 | Capital Senior Living Corp.* | 78,351 |
33
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Microcap Value Fund (cont.)
September 30, 2010
Shares | Value | |||||
67,000 | Cardiac Science Corp.* | $ | 120,600 | |||
26,000 | Conmed Corp.* | 582,660 | ||||
46,000 | Cross Country Healthcare, Inc.* | 330,740 | ||||
19,600 | CryoLife, Inc.* | 118,972 | ||||
27,970 | Hanger Orthopedic Group, Inc.* | 406,684 | ||||
20,313 | IntegraMed America, Inc.* | 190,536 | ||||
28,000 | Invacare Corp. | 742,280 | ||||
7,100 | Kewaunee Scientific Corp. | 78,810 | ||||
30,000 | Lannett Co., Inc.* | 137,400 | ||||
24,000 | Medcath Corp.* | 241,680 | ||||
19,000 | Mediware Information Systems* | 199,880 | ||||
38,000 | MedQuist, Inc.* | 332,880 | ||||
51,000 | PharMerica Corp.* | 486,030 | ||||
22,000 | RehabCare Group, Inc.* | 444,840 | ||||
57,000 | Res-Care, Inc.* | 756,390 | ||||
3,600 | Symmetry Medical, Inc.* | 34,704 | ||||
13,000 | Triple-S Management Corp., Class B* | 219,050 | ||||
8,686,591 | ||||||
Industrials — 20.62% |
| |||||
50,839 | Aceto Corp. | 345,197 | ||||
24,000 | Alamo Group, Inc. | 535,920 | ||||
125,000 | Allied Motion Technologies, Inc.* | 536,250 | ||||
22,000 | Altra Holdings, Inc.* | 324,060 | ||||
5,400 | Ampco-Pittsburgh Corp. | 134,028 | ||||
13,000 | Amrep Corp.* | 159,770 | ||||
22,000 | ATC Technology Corp.* | 544,280 | ||||
34,000 | Beacon Roofing Supply, Inc.* | 495,380 | ||||
17,000 | CAI International, Inc.* | 257,890 | ||||
20,800 | Cascade Corp. | 661,440 | ||||
30,000 | CBIZ, Inc.* | 177,900 | ||||
48,000 | Celadon Group, Inc.* | 662,880 | ||||
93,525 | Cenveo, Inc.* | 470,431 | ||||
2,800 | Chicago Rivet & Machine Co. | 48,580 | ||||
17,400 | CIRCOR International, Inc. | 549,840 | ||||
40,000 | Compx International, Inc. | 529,200 | ||||
23,000 | Consolidated Graphics, Inc.* | 953,350 | ||||
20,000 | Dolan Co. (The)* | 227,400 | ||||
26,000 | Ducommun, Inc. | 566,280 | ||||
63,000 | Eagle Bulk Shipping, Inc.* | 328,860 | ||||
14,700 | Eastern Co. (The) | 240,198 | ||||
11,880 | Ecology and Environment, Inc., Class A | 141,372 | ||||
30,000 | Encore Wire Corp. | 615,300 | ||||
44,000 | Ennis, Inc. | 787,160 | ||||
15,000 | EnPro Industries, Inc.* | 469,200 | ||||
35,000 | Espey Manufacturing & Electronics Corp. | 756,000 | ||||
62,000 | Excel Maritime Carriers Ltd.* | 348,440 | ||||
30,000 | Federal Signal Corp. | 161,700 |
34
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Microcap Value Fund (cont.)
September 30, 2010
Shares | Value | |||||
69,000 | Frozen Food Express Industries* | $191,130 | ||||
21,000 | G&K Services, Inc., Class A | 480,060 | ||||
13,000 | Geo Group, Inc. (The)* | 303,550 | ||||
40,000 | Gibraltar Industries, Inc.* | 359,200 | ||||
35,000 | Griffon Corp.* | 426,650 | ||||
25,750 | Hardinge, Inc. | 197,245 | ||||
39,000 | Herley Industries, Inc.* | 643,500 | ||||
12,000 | Insituform Technologies, Inc., Class A* | 290,160 | ||||
23,350 | International Shipholding Corp. | 659,404 | ||||
26,000 | Jinpan International Ltd. | 262,080 | ||||
12,000 | Key Technology, Inc.* | 155,040 | ||||
44,000 | Kforce, Inc.* | 603,680 | ||||
14,025 | KHD Humboldt Wedag International AG* | 111,499 | ||||
40,000 | Kimball International, Inc., Class B | 233,200 | ||||
29,000 | Ladish Co., Inc.* | 902,770 | ||||
64,000 | LECG Corp.* | 70,400 | ||||
38,000 | LS Starrett Co., Class A | 397,100 | ||||
51,750 | LSI Industries, Inc. | 332,235 | ||||
66,000 | Lydall, Inc.* | 485,760 | ||||
58,000 | Mair Holdings Escrow Shares*(a)(b)(c) | 0 | ||||
24,875 | Marten Transport Ltd. | 576,603 | ||||
72,000 | Mesa Air Group, Inc.* | 1,138 | ||||
41,117 | Met-Pro Corp. | 414,871 | ||||
53,000 | Miller Industries, Inc. | 717,090 | ||||
63,000 | NN, Inc.* | 519,750 | ||||
18,800 | Northwest Pipe Co.* | 329,000 | ||||
106,000 | On Assignment, Inc.* | 556,500 | ||||
20,000 | Orion Marine Group, Inc.* | 248,200 | ||||
53,600 | PAM Transportation Services, Inc.* | 674,288 | ||||
62,000 | Paragon Shipping, Inc., Class A | 244,280 | ||||
43,160 | Patrick Industries, Inc.* | 92,794 | ||||
29,000 | RCM Technologies, Inc.* | 146,160 | ||||
24,100 | Robbins & Myers, Inc. | 645,398 | ||||
45,500 | Rush Enterprises, Inc., Class A* | 697,970 | ||||
15,000 | Schawk, Inc. | 276,900 | ||||
21,000 | School Specialty, Inc.* | 273,210 | ||||
78,000 | SFN Group, Inc.* | 468,780 | ||||
13,800 | SL Industries, Inc.* | 194,442 | ||||
28,000 | Standex International Corp. | 677,320 | ||||
41,000 | Superior Uniform Group, Inc. | 379,250 | ||||
58,115 | Supreme Industries, Inc., Class A* | 129,596 | ||||
10,269 | Sykes Enterprises, Inc.* | 139,453 | ||||
31,000 | Tredegar Corp. | 588,380 | ||||
11,000 | Trex Co., Inc.* | 209,770 | ||||
21,000 | United Capital Corp.* | 510,930 | ||||
17,000 | Universal Forest Products, Inc. | 497,250 | ||||
19,000 | USA Truck, Inc.* | 284,620 | ||||
38,000 | Vitran Corp., Inc.* | 416,100 |
35
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Microcap Value Fund (cont.)
September 30, 2010
Shares | Value | |||||
43,200 | Volt Information Sciences, Inc.* | $ | 311,040 | |||
102,000 | WCA Waste Corp.* | 489,600 | ||||
90,000 | Willdan Group, Inc.* | 309,600 | ||||
55,000 | Willis Lease Finance Corp.* | 556,050 | ||||
31,709,302 | ||||||
Information Technology — 11.33% | ||||||
100,000 | Acorn Energy, Inc.* | 514,000 | ||||
36,000 | Actel Corp.* | 574,200 | ||||
31,000 | Agilysys, Inc.* | 201,500 | ||||
47,000 | Anaren, Inc.* | 789,130 | ||||
14,000 | Black Box Corp. | 448,840 | ||||
77,000 | Ciber, Inc.* | 231,770 | ||||
95,000 | Comarco, Inc.* | 204,250 | ||||
23,000 | Communications Systems, Inc. | 261,970 | ||||
82 | DG FastChannel, Inc.* | 1,783 | ||||
30,000 | Digi International, Inc.* | 284,700 | ||||
67,598 | Dynamics Research Corp.* | 694,907 | ||||
82,075 | Edgewater Technology, Inc.* | 223,244 | ||||
46,000 | Electro Rent Corp. | 610,880 | ||||
39,000 | Electro Scientific Industries, Inc.* | 433,290 | ||||
35,400 | ePlus, Inc.* | 759,330 | ||||
13,817 | Gerber Scientific, Inc.* | 85,251 | ||||
64,000 | GSI Group Escrow Shares*(a)(c) | 0 | ||||
64,000 | GSI Group, Inc.* | 160,640 | ||||
19,000 | GTSI Corp.* | 133,950 | ||||
32,000 | Infospace, Inc.* | 277,120 | ||||
52,000 | Insight Enterprises, Inc.* | 813,280 | ||||
20,000 | Integral Systems, Inc.* | 147,600 | ||||
98,375 | Integrated Silicon Solution, Inc.* | 847,009 | ||||
36,000 | Keynote Systems, Inc. | 418,320 | ||||
21,000 | Magal Security Systems Ltd.* | 63,000 | ||||
32,000 | Measurement Specialties, Inc.* | 591,360 | ||||
63,000 | Methode Electronics, Inc. | 572,040 | ||||
45,000 | Newport Corp.* | 510,300 | ||||
60,000 | NU Horizons Electronics Corp.* | 417,000 | ||||
40,000 | Oplink Communications, Inc.* | 793,600 | ||||
26,000 | Opnet Technologies, Inc. | 471,900 | ||||
103,000 | Optical Cable Corp.* | 292,520 | ||||
82,000 | PC Connection, Inc.* | 560,060 | ||||
72,000 | Perceptron, Inc.* | 321,840 | ||||
120,000 | Performance Technologies, Inc.* | 258,000 | ||||
37,930 | Photronics, Inc.* | 200,650 | ||||
28,000 | Retalix Ltd.* | 340,480 | ||||
47,000 | Richardson Electronics Ltd. | 493,500 | ||||
9,000 | Rosetta Stone, Inc.* | 191,160 | ||||
29,000 | Rudolph Technologies, Inc.* | 240,990 | ||||
70,000 | Sigmatron International, Inc.* | 409,500 |
36
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Microcap Value Fund (cont.)
September 30, 2010
Shares | Value | |||||
70,560 | TechTeam Global, Inc.* | $ | 493,214 | |||
31,500 | Tessco Technologies, Inc. | 474,705 | ||||
25,000 | Ulticom, Inc.* | 198,000 | ||||
90,000 | WebMediaBrands, Inc.* | 80,100 | ||||
100,000 | WPCS International, Inc.* | 338,000 | ||||
17,428,883 | ||||||
Materials — 4.99% | ||||||
70,200 | American Pacific Corp.* | 310,284 | ||||
37,000 | Blue Earth Refineries, Inc.* | 31,080 | ||||
68,000 | Buckeye Technologies, Inc. | 1,000,280 | ||||
20,000 | China Green Agriculture, Inc.* | 175,600 | ||||
18,000 | Friedman Industries | 122,400 | ||||
15,000 | Hawkins, Inc. | 531,300 | ||||
50,000 | Headwaters, Inc.* | 180,000 | ||||
44,000 | Innospec, Inc.* | 670,120 | ||||
8,300 | LSB Industries, Inc.* | 154,131 | ||||
16,400 | Myers Industries, Inc. | 140,876 | ||||
70,400 | North American Palladium Ltd.* | 291,456 | ||||
21,000 | Olympic Steel, Inc. | 482,790 | ||||
38,000 | Penford Corp.* | 175,180 | ||||
41,000 | PolyOne Corp.* | 495,690 | ||||
6,000 | Quaker Chemical Corp. | 195,360 | ||||
29,000 | Schulman (A), Inc. | 584,350 | ||||
55,000 | Spartech Corp.* | 451,550 | ||||
8,000 | Stepan Co. | 472,880 | ||||
66,000 | Terra Nova Royalty Corp.* | 492,360 | ||||
16,000 | Universal Stainless & Alloy* | 392,960 | ||||
3,200 | Vulcan International Corp. | 116,800 | ||||
25,000 | Wausau Paper Corp.* | 207,250 | ||||
7,674,697 | ||||||
Telecommunication Services — 0.65% | ||||||
30,000 | Premiere Global Services, Inc.* | 212,400 | ||||
41,000 | SureWest Communications* | 303,400 | ||||
30,000 | USA Mobility, Inc. | 480,900 | ||||
996,700 | ||||||
Utilities — 3.40% | ||||||
9,000 | American States Water Co. | 322,020 | ||||
3,054 | California Water Service Group | 112,845 | ||||
29,000 | Central Vermont Public Service Corp. | 584,930 | ||||
13,000 | CH Energy Group, Inc. | 574,080 | ||||
19,990 | Chesapeake Utilities Corp. | 724,038 | ||||
21,500 | Connecticut Water Service, Inc. | 514,925 | ||||
9,000 | Delta Natural Gas Co., Inc. | 276,750 | ||||
18,600 | Empire District Electric Co. (The) | 374,790 | ||||
4,900 | Maine & Maritimes Corp. | 220,010 |
37
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Microcap Value Fund (cont.)
September 30, 2010
Shares | Value | |||||
28,400 | Middlesex Water Co. | $ | 478,256 | |||
6,500 | RGC Resources, Inc. | 201,630 | ||||
17,800 | SJW Corp. | 438,414 | ||||
18,476 | Unitil Corp. | 405,548 | ||||
5,228,236 | ||||||
Total Common Stocks | 145,989,268 | |||||
(Cost $176,068,976) | ||||||
Preferred Stock — 0.43% | ||||||
3,017 | Alere, Inc.* | 654,721 | ||||
Total Preferred Stock | 654,721 | |||||
(Cost $505,275) | ||||||
Exchange Traded Funds — 0.24% | ||||||
5,700 | iShares Russell Microcap Index Fund | 239,400 | ||||
13,400 | PowerShares Zacks Micro Cap Portfolio | 133,705 | ||||
Total Exchange Traded Funds | 373,105 | |||||
(Cost $326,457) | ||||||
Rights/Warrants — 0.00% | ||||||
1,232 | Aventine Renewable Energy Holdings, Inc. Warrants, Expire 3/15/15*(a)(c) | 0 | ||||
3,585 | US Concrete, Inc. Warrants, Expire 8/31/17*(a)(c) | 0 | ||||
3,585 | US Concrete, Inc. Warrants, Expire 8/31/17*(a)(c) | 0 | ||||
Total Rights/Warrants | 0 | |||||
(Cost $0) | ||||||
Principal Amount | ||||||
Corporate Bonds — 0.00% | ||||||
$1,947 | Trenwick America Corp.*(a)(b)(c) | 0 | ||||
1,625 | Trenwick America Corp.*(a)(b)(c) | 0 | ||||
Total Corporate Bonds | 0 | |||||
(Cost $0) |
38
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Microcap Value Fund (cont.)
September 30, 2010
Shares | Value | |||||||
| Investment Company — 2.22% | |||||||
3,408,789 | JPMorgan Prime Money Market Fund | $ | 3,408,789 | |||||
| Total Investment Company | 3,408,789 | ||||||
| (Cost $3,408,789) | |||||||
| Total Investments | $ | 150,425,883 | |||||
| (Cost $180,309,497)(d) — 97.81% | |||||||
| Other assets in excess of liabilities — 2.19% | 3,371,254 | ||||||
| NET ASSETS — 100.00% | $ | 153,797,137 | |||||
* | Non-income producing security. |
(a) | This security is restricted and illiquid as the security may not be offered or sold within the United States or to U.S. persons except to qualified purchasers who are also either qualified institutional buyers or “accredited investors” (as defined in Rule 501 (a) of Regulation D under the Securities Act of 1933). |
The total investment in restricted and illiquid securities representing $641,874 or 0.42% of net assets was as follows:
Acquisition | Issuer | Acquisition Date | Acquisition Cost | 9/30/2010 Carrying Value Per Unit | ||||||||||
$1,232 | Aventine Renewable | 04/14/2010 | $ | — | $ | — | ||||||||
Energy Holdings, Inc., Warrants | ||||||||||||||
$100,000 | Beverly Hills Bancorp., Inc. | 07/30/2007 | $ | 745,716 | $ | 0.01 | ||||||||
$11,615 | Enbridge Energy Management LLC | 02/11/2004 | $ | 318,064 | $ | 55.17 | ||||||||
$64,000 | GSI Group, Inc. Escrow Shares | 07/28/2010 | $ | — | $ | — | ||||||||
$58,000 | Mair Holdings Escrow Shares | 09/04/2008 | $ | 6,960 | $ | — | ||||||||
$1,947 | Trenwick America Corp. | 05/18/2006 | $ | — | $ | — | ||||||||
$1,625 | Trenwick America Corp. | 05/18/2006 | $ | — | $ | — | ||||||||
$3,585 | U.S. Concrete, Inc., Warrants | 09/09/2010 | $ | — | $ | — |
(b) | Security delisted or issuer in bankruptcy. |
(c) | Fair valued security under procedures established by the Fund’s Board of Trustees. |
(d) | See notes to financial statements for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Abbreviations used are defined below:
REIT - Real Estate Investment Trust
See notes to financial statements.
39
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Mid Cap Value Fund
September 30, 2010
Shares | Value | |||||
Common Stocks — 99.81% | ||||||
Consumer Discretionary — 10.29% | ||||||
1,120 | Dress Barn, Inc.* | $ | 26,600 | |||
1,150 | Kohl’s Corp.* | 60,582 | ||||
500 | Leggett & Platt, Inc. | 11,380 | ||||
1,000 | Mattel, Inc. | 23,460 | ||||
630 | Service Corp. International | 5,431 | ||||
1,000 | True Religion Apparel, Inc.* | 21,340 | ||||
220 | VF Corp. | 17,824 | ||||
170 | Whirlpool Corp. | 13,763 | ||||
180,380 | ||||||
Consumer Staples — 1.16% | ||||||
500 | Conagra Foods, Inc. | 10,970 | ||||
840 | Sally Beauty Holdings, Inc.* | 9,408 | ||||
20,378 | ||||||
Energy — 10.74% | ||||||
600 | Berry Petroleum Co., Class A | 19,038 | ||||
980 | Cameron International Corp.* | 42,101 | ||||
960 | Dresser-Rand Group, Inc.* | 35,414 | ||||
710 | Forest Oil Corp.* | 21,087 | ||||
890 | Key Energy Services, Inc.* | 8,464 | ||||
170 | Peabody Energy Corp. | 8,332 | ||||
2,070 | World Fuel Services Corp. | 53,841 | ||||
188,277 | ||||||
Financials — 27.77% | ||||||
520 | Ameriprise Financial, Inc. | 24,612 | ||||
90 | Arch Capital Group Ltd.* | 7,542 | ||||
1,960 | Ares Capital Corp. | 30,674 | ||||
1,170 | Delphi Financial Group, Inc., Class A | 29,238 | ||||
1,530 | Discover Financial Services | 25,520 | ||||
1,291 | First Horizon National Corp.* | 14,731 | ||||
3,700 | First Niagara Financial Group, Inc. | 43,105 | ||||
1,300 | HCC Insurance Holdings, Inc. | 33,917 | ||||
6,720 | KKR Financial Holdings LLC REIT | 59,002 | ||||
1,770 | MFA Financial Inc., REIT | 13,505 | ||||
1,480 | New York Community Bancorp, Inc. | 24,050 | ||||
2,960 | People’s United Financial, Inc. | 38,746 | ||||
410 | Principal Financial Group, Inc. | 10,627 | ||||
140 | ProAssurance Corp.* | 8,063 | ||||
1,590 | Reinsurance Group of America, Inc. | 76,781 | ||||
2,000 | Tower Group, Inc. | 46,700 | ||||
486,813 | ||||||
Health Care — 8.64% | ||||||
1,050 | AmerisourceBergen Corp. | 32,193 | ||||
350 | Community Health Systems, Inc.* | 10,839 |
40
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Mid Cap Value Fund (cont.)
September 30, 2010
Shares | Value | |||||
830 | Emergency Medical Services Corp., Class A* | $ | 44,198 | |||
1,870 | Mylan, Inc.* | 35,175 | ||||
6,150 | Tenet Healthcare Corp.* | 29,028 | ||||
151,433 | ||||||
Industrials — 14.75% | ||||||
270 | AMETEK, Inc. | 12,898 | ||||
1,820 | ArvinMeritor, Inc.* | 28,283 | ||||
740 | Fluor Corp. | 36,652 | ||||
260 | FTI Consulting, Inc.* | 9,019 | ||||
460 | Gardner Denver, Inc. | 24,693 | ||||
860 | JB Hunt Transport Services, Inc. | 29,842 | ||||
70 | Navistar International Corp.* | 3,055 | ||||
1,080 | Republic Services, Inc. | 32,929 | ||||
400 | SPX Corp. | 25,312 | ||||
490 | Wabtec Corp. | 23,417 | ||||
1,580 | Werner Enterprises, Inc. | 32,374 | ||||
258,474 | ||||||
Information Technology — 11.21% | ||||||
320 | Avnet, Inc.* | 8,643 | ||||
750 | CommScope, Inc.* | 17,805 | ||||
3,400 | Fairchild Semiconductor International, Inc.* | 31,960 | ||||
1,050 | Flextronics International Ltd* | 6,342 | ||||
660 | Harris Corp. | 29,231 | ||||
1,260 | InterDigital, Inc.* | 37,309 | ||||
760 | MEMC Electronic Materials, Inc.* | 9,059 | ||||
440 | SAIC, Inc.* | 7,031 | ||||
860 | Skyworks Solutions, Inc.* | 17,785 | ||||
900 | Veeco Instruments, Inc.* | 31,383 | ||||
196,548 | ||||||
Materials — 12.15% | ||||||
150 | Air Products & Chemicals, Inc. | 12,423 | ||||
1,320 | Celanese Corp., Class A | 42,372 | ||||
1,410 | Crown Holdings, Inc.* | 40,411 | ||||
384 | Cytec Industries, Inc. | 21,650 | ||||
110 | FMC Corp. | 7,525 | ||||
690 | International Paper Co. | 15,008 | ||||
330 | Lubrizol Corp. | 34,970 | ||||
790 | Owens-Illinois, Inc.* | 22,167 | ||||
170 | Reliance Steel & Aluminum Co. | 7,060 | ||||
190 | Rock-Tenn Co., Class A | 9,464 | ||||
213,050 | ||||||
Utilities — 3.10% | ||||||
510 | Edison International | 17,539 | ||||
410 | EQT Corp. | 14,785 |
41
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Mid Cap Value Fund (cont.)
September 30, 2010
Shares | Value | |||||
660 | Unisource Energy Corp. | $ | 22,064 | |||
54,388 | ||||||
Total Common Stocks | 1,749,741 | |||||
(Cost $1,664,770) | ||||||
Investment Company — 4.37% | ||||||
76,649 | JPMorgan Prime Money Market Fund | 76,649 | ||||
Total Investment Company | 76,649 | |||||
(Cost $76,649) | ||||||
Total Investments | $ | 1,826,390 | ||||
(Cost $1,741,419)(a) — 104.18% | ||||||
Liabilities in excess of other assets — (4.18)% | (73,324 | ) | ||||
NET ASSETS — 100.00% | $ | 1,753,066 | ||||
* | Non-income producing security. |
(a) | See notes to financial statements for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Abbreviations used are defined below:
REIT - Real Estate Investment Trust
See notes to financial statements.
42
|
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43
FINANCIAL STATEMENTS
|
Statements of Assets and Liabilities
September 30, 2010 | ||||||||||||||||||||
RBC SMID Cap Growth Fund | RBC Enterprise Fund | RBC Small Cap Core Fund | RBC Microcap Value Fund | RBC Mid Cap Value Fund | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investments, at value (cost $52,356,820, $125,285,773, $32,740,644, $180,309,497 and $1,741,419, respectively) | $ | 64,422,589 | $ | 138,211,370 | $ | 43,636,358 | $ | 150,425,883 | $ | 1,826,390 | ||||||||||
Foreign currency , at value (cost $0,$0,$0,$260,350, and $0 respectively) | — | — | — | 259,978 | — | |||||||||||||||
Interest and dividends receivable | 11,977 | 107,544 | 24,042 | 170,003 | 890 | |||||||||||||||
Receivable from advisor | — | — | 5,082 | — | 2,453 | |||||||||||||||
Receivable for capital shares issued | 973,803 | 166 | 1,776 | 88,225 | — | |||||||||||||||
Receivable for investments sold | 813,108 | 1,362,376 | 467,047 | 3,152,711 | 10,466 | |||||||||||||||
Prepaid expenses | 41,720 | 41,850 | 34,572 | 37,579 | 8,989 | |||||||||||||||
Total Assets | 66,263,197 | 139,723,306 | 44,168,877 | 154,134,379 | 1,849,188 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Payable for capital shares redeemed | — | 86,699 | — | 114,452 | — | |||||||||||||||
Payable for investments purchased | 1,206,073 | 221,604 | 50,379 | — | 53,949 | |||||||||||||||
Accrued expenses and other payables: | ||||||||||||||||||||
Investment advisory fees | 8,248 | 39,777 | — | 64,880 | — | |||||||||||||||
Administration fees | 3,775 | 8,099 | 2,562 | 9,246 | 104 | |||||||||||||||
Audit fees | 31,076 | 31,099 | 31,071 | 31,107 | 31,058 | |||||||||||||||
Trustees’ fees | 66 | 153 | 35 | 193 | 67 | |||||||||||||||
Distribution fees | 13,010 | 2,921 | 673 | 8,035 | — | |||||||||||||||
Shareholder reports | 5,165 | 18,417 | 5,750 | 19,879 | 3,315 | |||||||||||||||
Transfer agent fees | 38,659 | 66,260 | 26,162 | 79,898 | 668 | |||||||||||||||
Other | 6,675 | 8,191 | 6,845 | 9,552 | 6,961 | |||||||||||||||
Total Liabilities | 1,312,747 | 483,220 | 123,477 | 337,242 | 96,122 | |||||||||||||||
Net Assets | $ | 64,950,450 | $ | 139,240,086 | $ | 44,045,400 | $ | 153,797,137 | $ | 1,753,066 | ||||||||||
Net Assets Consist Of: | ||||||||||||||||||||
Capital | $ | 59,168,653 | $ | 155,323,481 | $ | 36,265,889 | $ | 210,115,927 | $ | 1,569,342 | ||||||||||
Undistributed net investment income | — | 38,170 | 1,214 | 510,920 | 67,068 | |||||||||||||||
Accumulated net realized gains (losses) from investment transactions and foreign currency | (6,283,972 | ) | (29,047,162 | ) | (3,117,417 | ) | (26,945,723 | ) | 31,685 | |||||||||||
Net unrealized appreciation (depreciation) on investments and foreign currency | 12,065,769 | 12,925,597 | 10,895,714 | (29,883,987 | ) | 84,971 | ||||||||||||||
Net Assets | $ | 64,950,450 | $ | 139,240,086 | $ | 44,045,400 | $ | 153,797,137 | $ | 1,753,066 | ||||||||||
Net Assets: | ||||||||||||||||||||
Class A | $ | 21,939,830 | $ | 2,425,639 | $ | 518,896 | $ | 6,968,331 | N/A | |||||||||||
Class I | 41,121,463 | 25,998,741 | N/A | N/A | $ | 1,753,066 | ||||||||||||||
Class C | 66,734 | 568,156 | 85,642 | 849,600 | N/A | |||||||||||||||
Class S | 1,822,423 | 110,247,550 | 43,440,862 | 145,979,206 | N/A | |||||||||||||||
Total | $ | 64,950,450 | $ | 139,240,086 | $ | 44,045,400 | $ | 153,797,137 | $ | 1,753,066 | ||||||||||
44
FINANCIAL STATEMENTS
|
Statements of Assets and Liabilities (cont.)
RBC SMID Cap Growth Fund | RBC Enterprise Fund | RBC Small Cap Core Fund | RBC Microcap Value Fund | RBC Mid Cap Value Fund | ||||||||||||||||
Shares Outstanding (Unlimited number of shares authorized, no par value): | ||||||||||||||||||||
Class A | 2,006,169 | 168,103 | 25,954 | 477,621 | N/A | |||||||||||||||
Class I | 3,597,056 | 1,772,616 | N/A | N/A | 162,274 | |||||||||||||||
Class C | 6,432 | 42,004 | 4,547 | 60,984 | N/A | |||||||||||||||
Class S | 159,376 | 7,519,806 | 2,128,473 | 9,987,274 | N/A | |||||||||||||||
Total | 5,769,033 | 9,502,529 | 2,158,974 | 10,525,879 | 162,274 | |||||||||||||||
Net Asset Values and Redemption Prices per Share: | ||||||||||||||||||||
Class A(a) | $ | 10.94 | $ | 14.43 | $ | 19.99 | $ | 14.59 | N/A | |||||||||||
Class I | $ | 11.43 | $ | 14.67 | N/A | N/A | $ | 10.80 | ||||||||||||
Class C(b) | $ | 10.38 | $ | 13.53 | $ | 18.83 | $ | 13.93 | N/A | |||||||||||
Class S | $ | 11.43 | $ | 14.66 | $ | 20.41 | $ | 14.62 | N/A | |||||||||||
Maximum Offering Price Per Share: | ||||||||||||||||||||
Class A | $ | 11.61 | $ | 15.31 | $ | 21.21 | $ | 15.48 | N/A | |||||||||||
Maximum Sales Charge - Class A | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | N/A | |||||||||||
(a) | For Class A shares, redemption price per share will be reduced by 1.00% for sales of shares within 12 months of purchase (only applicable on purchases of $1 million or more on which no initial sales charge was paid). Such reduction is not reflected in the net asset value and the redemption price per share. |
(b) | For Class C shares, redemption price per share will be reduced by 1.00% for sales of shares within 12 months of purchase. Such reduction is not reflected in the net asset value and the redemption price per share. |
See notes to financial statements.
45
FINANCIAL STATEMENTS
|
For the Year Ended September 30, 2010
RBC SMID Cap Growth Fund | RBC Enterprise Fund | RBC Small Cap Core Fund | RBC Microcap Value Fund | RBC Mid Cap Value Fund(a) | ||||||||||||||||
Investment Income: | ||||||||||||||||||||
Dividend income | $ | 293,142 | $ | 1,360,075 | $ | 435,656 | $ | 2,376,719 | $ | 14,236 | ||||||||||
Other income | 28,614 | — | — | — | — | |||||||||||||||
Foreign tax withholding | — | — | (47 | ) | — | — | ||||||||||||||
Total Investment Income | 321,756 | 1,360,075 | 435,609 | 2,376,719 | 14,236 | |||||||||||||||
Expenses: | ||||||||||||||||||||
Investment advisory fees | 420,883 | 1,402,960 | 541,893 | 1,486,720 | 8,588 | |||||||||||||||
Distribution fees - Class A | 51,340 | 6,900 | 1,329 | 18,495 | — | |||||||||||||||
Distribution fees - Class C | 668 | 6,464 | �� | 1,445 | 10,081 | — | ||||||||||||||
Distribution fees - Class R | 94 | 172 | 157 | 1,621 | — | |||||||||||||||
Accounting fees | 28,005 | 31,960 | 27,176 | 33,258 | 18,828 | |||||||||||||||
Administration fees | 45,095 | 104,413 | 32,658 | 123,893 | 920 | |||||||||||||||
Audit fees | 29,324 | 29,577 | 29,394 | 29,589 | 31,058 | |||||||||||||||
Custodian fees | 2,588 | 6,271 | 3,942 | 5,910 | 7,073 | |||||||||||||||
Insurance fees | 5,880 | 5,880 | 5,880 | 5,880 | 1,893 | |||||||||||||||
Legal fees | 17,356 | 3,264 | 3,606 | 4,123 | 62,571 | |||||||||||||||
Registration and filing fees | 89,984 | 88,955 | 83,760 | 75,947 | 6,459 | |||||||||||||||
Shareholder reports | 15,111 | 36,085 | 11,623 | 39,970 | 7,561 | |||||||||||||||
Transfer agent fees | 255,249 | 381,171 | 134,212 | 452,640 | 3,042 | |||||||||||||||
Trustees’ fees | 1,052 | 2,452 | 771 | 2,909 | 90 | |||||||||||||||
Other fees | 14,314 | 15,495 | 13,781 | 28,438 | 7,023 | |||||||||||||||
Total expenses before fee waiver/reimbursement | 976,943 | 2,122,019 | 891,627 | 2,319,474 | 155,106 | |||||||||||||||
Expenses waived/reimbursed by: Adviser | (263,454 | ) | (604,931 | ) | (359,374 | ) | (521,698 | ) | (144,064 | ) | ||||||||||
Net Expenses | 713,489 | 1,517,088 | 532,253 | 1,797,776 | 11,042 | |||||||||||||||
Net Investment Income (Loss) | (391,733 | ) | (157,013 | ) | (96,644 | ) | 578,943 | 3,194 | ||||||||||||
Realized/Unrealized Gains (Losses) from Investment Transactions: | ||||||||||||||||||||
Net realized gains (losses) from investment transactions | 9,006,109 | (10,852,614 | ) | 1,727,391 | (2,013,724 | ) | 30,401 | |||||||||||||
Net realized gains (losses) from foreign currency | — | — | — | 2,024 | — | |||||||||||||||
Net change in unrealized appreciation/depreciation on investments | 3,635,810 | 21,627,462 | 5,509,913 | 18,308,016 | 84,971 | |||||||||||||||
Net change in unrealized appreciation/ depreciation on foreign currency | — | — | — | (373 | ) | — | ||||||||||||||
Net realized/unrealized gains from investments | 12,641,919 | 10,774,848 | 7,237,304 | 16,295,943 | 115,372 | |||||||||||||||
Change in net assets resulting from operations | $ | 12,250,186 | $ | 10,617,835 | $ | 7,140,660 | $ | 16,874,886 | $ | 118,566 | ||||||||||
(a) | For the period from December 31, 2009 (commencement of operations) to September 30, 2010. |
See notes to the financial statements.
46
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets
RBC SMID Cap Growth Fund | ||||||||||||||
For the Year Ended | For the Year Ended September 30, 2009 | |||||||||||||
From Investment Activities: |
| |||||||||||||
Operations: | ||||||||||||||
Net investment loss | $ | (391,733 | ) | $ | (182,103 | ) | ||||||||
Net realized gains (losses) from investment transactions | 9,006,109 | (15,263,614 | ) | |||||||||||
Net change in unrealized appreciation/depreciation on investments | 3,635,810 | 3,937,456 | ||||||||||||
Change in net assets resulting from operations | 12,250,186 | (11,508,261 | ) | |||||||||||
Distributions to Class A Shareholders: | ||||||||||||||
From net realized gains | — | (203,081 | ) | |||||||||||
Distributions to Class I Shareholders: | ||||||||||||||
From net realized gains | — | (480,353 | ) | |||||||||||
Distributions to Class C Shareholders: | ||||||||||||||
From net realized gains | — | (1,093 | ) | |||||||||||
Distributions to Class R Shareholders: | ||||||||||||||
From net realized gains | — | (77 | ) | |||||||||||
Distributions to Class S Shareholders: | ||||||||||||||
From net realized gains | — | (11,879 | ) | |||||||||||
Change in net assets resulting from shareholder distributions | — | (696,483 | ) | |||||||||||
Capital Transactions: | ||||||||||||||
Proceeds from shares issued | 7,133,544 | 12,364,104 | ||||||||||||
Distributions reinvested | — | 693,108 | ||||||||||||
Cost of shares redeemed | (15,569,207 | ) | (27,830,725 | ) | ||||||||||
Change in net assets resulting from capital transactions | (8,435,663 | ) | (14,773,513 | ) | ||||||||||
Net increase/(decrease) in net assets | 3,814,523 | (26,978,257 | ) | |||||||||||
Net Assets: | ||||||||||||||
Beginning of year | 61,135,927 | 88,114,184 | ||||||||||||
End of year | $ | 64,950,450 | $ | 61,135,927 | ||||||||||
Undistributed net investment income | $ | — | $ | — | ||||||||||
Share Transactions: | ||||||||||||||
Issued | 686,333 | 1,594,665 | ||||||||||||
Reinvested | — | 98,610 | ||||||||||||
Redeemed | (1,600,438 | ) | (3,436,006 | ) | ||||||||||
Change in shares resulting from capital transactions | (914,105 | ) | (1,742,731 | ) | ||||||||||
See notes to financial statements.
47
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets (cont.)
RBC Enterprise Fund | ||||||||||||
For the Year Ended September 30, 2010 | For the Year Ended | |||||||||||
From Investment Activities: | ||||||||||||
Operations: | ||||||||||||
Net investment income (loss) | $ | (157,013 | ) | $ | 84,024 | |||||||
Net realized losses from investment transactions | (10,852,614 | ) | (18,529,991 | ) | ||||||||
Net change in unrealized appreciation/depreciation on investments | 21,627,462 | (6,733,915 | ) | |||||||||
Change in net assets resulting from operations | 10,617,835 | (25,179,882 | ) | |||||||||
Distributions to Class A Shareholders: | ||||||||||||
From net realized gains | — | (495,155 | ) | |||||||||
Distributions to Class I Shareholders: | ||||||||||||
From net realized gains | — | (2,634,071 | ) | |||||||||
Distributions to Class C Shareholders: | ||||||||||||
From net realized gains | — | (107,763 | ) | |||||||||
Distributions to Class R Shareholders: | ||||||||||||
From net realized gains | — | (3,157 | ) | |||||||||
Distributions to Class S Shareholders: | ||||||||||||
From net realized gains | — | (14,038,037 | ) | |||||||||
Change in net assets resulting from shareholder distributions | — | (17,278,183 | ) | |||||||||
Capital Transactions: | ||||||||||||
Proceeds from shares issued | 2,760,853 | 6,901,058 | ||||||||||
Distributions reinvested | — | 16,492,996 | ||||||||||
Cost of shares redeemed | (20,830,494 | ) | (31,818,174 | ) | ||||||||
Change in net assets resulting from capital transactions | (18,069,641 | ) | (8,424,120 | ) | ||||||||
Net decrease in net assets | (7,451,806 | ) | (50,882,185 | ) | ||||||||
Net Assets: | ||||||||||||
Beginning of year | 146,691,892 | 197,574,077 | ||||||||||
End of year | $ | 139,240,086 | $ | 146,691,892 | ||||||||
Undistributed net investment income | $ | 38,170 | $ | — | ||||||||
Share Transactions: | ||||||||||||
Issued | 200,184 | 601,047 | ||||||||||
Reinvested | — | 1,609,996 | ||||||||||
Redeemed | (1,522,849 | ) | (2,933,405 | ) | ||||||||
Change in shares resulting from capital transactions | (1,322,665 | ) | (722,362 | ) | ||||||||
See notes to financial statements.
48
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets (cont.)
RBC Small Cap Core Fund | ||||||||||||||||
For the Year Ended September 30, 2010 | For the Year Ended September 30, 2009 | |||||||||||||||
From Investment Activities: | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income (loss) | $ | (96,644 | ) | $ | 10,473 | |||||||||||
Net realized gains/(losses) from investment transactions | 1,727,391 | (4,927,057 | ) | |||||||||||||
Net change in unrealized appreciation/depreciation on investments | 5,509,913 | 1,249,455 | ||||||||||||||
Change in net assets resulting from operations | 7,140,660 | (3,667,129 | ) | |||||||||||||
Distributions to Class A Shareholders: | ||||||||||||||||
From net realized gains | — | (74,015 | ) | |||||||||||||
Distributions to Class I Shareholders: | ||||||||||||||||
From net realized gains | — | (7,995 | ) | |||||||||||||
Distributions to Class C Shareholders: | ||||||||||||||||
From net realized gains | — | (36,301 | ) | |||||||||||||
Distributions to Class R Shareholders: | ||||||||||||||||
From net realized gains | — | (1,085 | ) | |||||||||||||
Distributions to Class S Shareholders: | ||||||||||||||||
From net realized gains | — | (4,126,465 | ) | |||||||||||||
Change in net assets resulting from shareholder distributions | — | (4,245,861 | ) | |||||||||||||
Capital Transactions: | ||||||||||||||||
Proceeds from shares issued | 5,425,799 | 2,327,325 | ||||||||||||||
Distributions reinvested | — | 4,099,727 | ||||||||||||||
Cost of shares redeemed | (9,705,897 | ) | (4,760,895 | ) | ||||||||||||
Change in net assets resulting from capital transactions | (4,280,098 | ) | 1,666,157 | |||||||||||||
Net increase (decrease) in net assets | 2,860,562 | (6,246,833 | ) | |||||||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 41,184,838 | 47,431,671 | ||||||||||||||
End of year | $ | 44,045,400 | $ | 41,184,838 | ||||||||||||
Undistributed net investment income | $ | 1,214 | $ | — | ||||||||||||
Share Transactions: | ||||||||||||||||
Issued | 287,779 | 188,844 | ||||||||||||||
Reinvested | — | 319,064 | ||||||||||||||
Redeemed | (503,926 | ) | (335,315 | ) | ||||||||||||
Change in shares resulting from capital transactions | (216,147 | ) | 172,593 | |||||||||||||
See notes to financial statements.
49
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets (cont.)
RBC Microcap Value Fund | ||||||||||||||||
For the Year Ended September 30, 2010 | For the Year Ended September 30, 2009 | |||||||||||||||
From Investment Activities: | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 578,943 | $ | 1,219,652 | ||||||||||||
Net realized losses from investment transactions | (2,011,700 | ) | (25,066,826 | ) | ||||||||||||
Net change in unrealized appreciation/depreciation on investments | 18,307,643 | (21,689,800 | ) | |||||||||||||
Change in net assets resulting from operations | 16,874,886 | (45,536,974 | ) | |||||||||||||
Distributions to Class A Shareholders: | ||||||||||||||||
From net investment income | (11,456 | ) | (28,683 | ) | ||||||||||||
From net realized gains | — | (856,790 | ) | |||||||||||||
Distributions to Class C Shareholders: | ||||||||||||||||
From net realized gains | — | (100,150 | ) | |||||||||||||
Distributions to Class R Shareholders: | ||||||||||||||||
From net investment income | — | (643 | ) | |||||||||||||
From net realized gains | — | (34,563 | ) | |||||||||||||
Distributions to Class S Shareholders: | ||||||||||||||||
From net investment income | (675,364 | ) | (1,244,104 | ) | ||||||||||||
From net realized gains | — | (12,830,897 | ) | |||||||||||||
Change in net assets resulting from shareholder distributions | (686,820 | ) | (15,095,830 | ) | ||||||||||||
Capital Transactions: | ||||||||||||||||
Proceeds from shares issued | 26,521,029 | 63,361,145 | ||||||||||||||
Distributions reinvested | 655,144 | 14,287,787 | ||||||||||||||
Cost of shares redeemed | (61,601,127 | ) | (127,965,205 | ) | ||||||||||||
Change in net assets resulting from capital transactions | (34,424,954 | ) | (50,316,273 | ) | ||||||||||||
Net decrease in net assets | (18,236,888 | ) | (110,949,077 | ) | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 172,034,025 | 282,983,102 | ||||||||||||||
End of year | $ | 153,797,137 | $ | 172,034,025 | ||||||||||||
Undistributed net investment income | $ | 510,920 | $ | 564,464 | ||||||||||||
Share Transactions: | ||||||||||||||||
Issued | 1,851,377 | 6,040,956 | ||||||||||||||
Reinvested | 49,595 | 1,445,020 | ||||||||||||||
Redeemed | (4,426,661 | ) | (11,627,188 | ) | ||||||||||||
Change in shares resulting from capital transactions | (2,525,689 | ) | (4,141,212 | ) | ||||||||||||
See notes to financial statements.
50
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets (cont.)
RBC Mid Cap Value Fund | ||
For the Period Ended September 30, 2010(a) |
From Investment Activities: | ||||
Operations: | ||||
Net investment income | $ | 3,194 | ||
Net realized gains from investment transactions | 30,401 | |||
Net change in unrealized appreciation/depreciation on investments | 84,971 | |||
Change in net assets resulting from operations | 118,566 | |||
Capital Transactions: | ||||
Proceeds from shares issued | 1,634,500 | |||
Change in net assets resulting from capital transactions | 1,634,500 | |||
Net increase in net assets | 1,753,066 | |||
Net Assets | ||||
Beginning of period | — | |||
End of period | $ | 1,753,066 | ||
Undistributed net investment income | $ | 67,068 | ||
Share Transactions: | ||||
Issued | 162,274 | |||
Change in shares resulting from capital transactions | 162,274 | |||
(a) | For the period from December 31, 2009 (commencement of operations) to September 30, 2010. |
See notes to financial statements.
51
|
RBC SMID Cap Growth Fund | (Selected data for a share outstanding throughout the years indicated) | |||||||||||||||||||||||||||||||
Investment Activities | Distributions | |||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Loss | Net Realized and Unrealized Gains (Losses) on Investments | Redemption Fees | Total from Investment Activities | Net Realized Gains | Total Distributions | Net Asset Value, End of Period | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Year Ended September 30, 2010 | $8.89 | (0.08)(a) | 2.13 | (b | ) | 2.05 | — | — | $10.94 | |||||||||||||||||||||||
Year Ended September 30, 2009 | 10.18 | (0.04)(a) | (1.17 | ) | (b | ) | (1.21 | ) | (0.08 | ) | (0.08 | ) | 8.89 | |||||||||||||||||||
Year Ended September 30, 2008 | 13.90 | (0.09)(a) | (2.52 | ) | (b | ) | (2.61 | ) | (1.11 | ) | (1.11 | ) | 10.18 | |||||||||||||||||||
Year Ended September 30, 2007 | 12.47 | (0.10)(a) | 1.88 | (b | ) | 1.78 | (0.35 | ) | (0.35 | ) | 13.90 | |||||||||||||||||||||
Year Ended September 30, 2006 | 11.71 | (0.08)(a) | 1.07 | (b | ) | 0.99 | (0.23 | ) | (0.23 | ) | 12.47 | |||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
Year Ended September 30, 2010 | $9.27 | (0.06)(a) | 2.22 | (b | ) | 2.16 | — | — | $11.43 | |||||||||||||||||||||||
Year Ended September 30, 2009 | 10.58 | (0.02)(a) | (1.21 | ) | (b | ) | (1.23 | ) | (0.08 | ) | (0.08 | ) | 9.27 | |||||||||||||||||||
Year Ended September 30, 2008 | 14.36 | (0.06)(a) | (2.61 | ) | (b | ) | (2.67 | ) | (1.11 | ) | (1.11 | ) | 10.58 | |||||||||||||||||||
Year Ended September 30, 2007 | 12.85 | (0.07)(a) | 1.93 | (b | ) | 1.86 | (0.35 | ) | (0.35 | ) | 14.36 | |||||||||||||||||||||
Year Ended September 30, 2006 | 12.03 | (0.05)(a) | 1.10 | (b | ) | 1.05 | (0.23 | ) | (0.23 | ) | 12.85 | |||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Year Ended September 30, 2010 | $8.50 | (0.14)(a) | 2.02 | (b | ) | 1.88 | — | — | $10.38 | |||||||||||||||||||||||
Year Ended September 30, 2009 | 9.81 | (0.09)(a) | (1.14 | ) | (b | ) | (1.23 | ) | (0.08 | ) | (0.08 | ) | 8.50 | |||||||||||||||||||
Year Ended September 30, 2008 | 13.53 | (0.18)(a) | (2.43 | ) | (b | ) | (2.61 | ) | (1.11 | ) | (1.11 | ) | 9.81 | |||||||||||||||||||
Year Ended September 30, 2007 | 12.24 | (0.19)(a) | 1.83 | (b | ) | 1.64 | (0.35 | ) | (0.35 | ) | 13.53 | |||||||||||||||||||||
Year Ended September 30, 2006 | 11.59 | (0.17)(a) | 1.05 | (b | ) | 0.88 | (0.23 | ) | (0.23 | ) | 12.24 | |||||||||||||||||||||
Class S | ||||||||||||||||||||||||||||||||
Year Ended September 30, 2010 | $9.28 | (0.06)(a) | 2.21 | (b | ) | 2.15 | — | — | $11.43 | |||||||||||||||||||||||
Year Ended September 30, 2009 | 10.59 | (0.02)(a) | (1.21 | ) | (b | ) | (1.23 | ) | (0.08 | ) | (0.08 | ) | 9.28 | |||||||||||||||||||
Year Ended September 30, 2008 | 14.38 | (0.06)(a) | (2.62 | ) | (b | ) | (2.68 | ) | (1.11 | ) | (1.11 | ) | 10.59 | |||||||||||||||||||
Year Ended September 30, 2007 | 12.86 | (0.07)(a) | 1.94 | (b | ) | 1.87 | (0.35 | ) | (0.35 | ) | 14.38 | |||||||||||||||||||||
Year Ended September 30, 2006 | 12.03 | (0.05)(a) | 1.11 | (b | ) | 1.06 | (0.23 | ) | (0.23 | ) | 12.86 |
(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. |
See notes to financial statements.
52
FINANCIAL HIGHLIGHTS
|
RBC SMID Cap Growth Fund (cont.) | (Selected data for a share outstanding throughout the years indicated) | |||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Total Return* | Net Assets, End of Period (000’s) | Ratio of Net Expenses to Average Net Assets | Ratio of Net Investment Loss to Average Net Assets | Ratio of Expenses to Average Net Assets** | Portfolio Turnover Rate*** | |||||||||||||||||||
Class A | ||||||||||||||||||||||||
Year Ended September 30, 2010 | 23.06% | $ 21,940 | 1.35% | (0.81%) | 1.79% | 89% | ||||||||||||||||||
Year Ended September 30, 2009 | (11.61%) | 19,421 | 1.35% | (0.47%) | 1.88% | 62% | ||||||||||||||||||
Year Ended September 30, 2008 | (20.14%) | 25,483 | 1.32% | (0.74%) | 1.68% | 46% | ||||||||||||||||||
Year Ended September 30, 2007 | 14.52% | 33,887 | 1.35% | (0.78%) | 1.72% | 31% | ||||||||||||||||||
Year Ended September 30, 2006 | 8.52% | 43,803 | 1.35% | (0.66%) | 1.73% | 23% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
Year Ended September 30, 2010 | 23.30% | $ 41,121 | 1.10% | (0.57%) | 1.54% | 89% | ||||||||||||||||||
Year Ended September 30, 2009 | (11.36%) | 40,098 | 1.10% | (0.21%) | 1.38% | 62% | ||||||||||||||||||
Year Ended September 30, 2008 | (19.95%) | 60,998 | 1.07% | (0.48%) | 1.19% | 46% | ||||||||||||||||||
Year Ended September 30, 2007 | 14.89% | 75,721 | 1.10% | (0.53%) | 1.21% | 31% | ||||||||||||||||||
Year Ended September 30, 2006 | 8.71% | 72,866 | 1.10% | (0.41%) | 1.23% | 23% | ||||||||||||||||||
Class C | ||||||||||||||||||||||||
Year Ended September 30, 2010 | 22.12% | $67 | 2.09% | (1.57%) | 2.53% | 89% | ||||||||||||||||||
Year Ended September 30, 2009 | (12.26%) | 98 | 2.10% | (1.21%) | 2.38% | 62% | ||||||||||||||||||
Year Ended September 30, 2008 | (20.72%) | 129 | 2.07% | (1.52%) | 2.16% | 46% | ||||||||||||||||||
Year Ended September 30, 2007 | 13.73% | 1,265 | 2.10% | (1.52%) | 2.23% | 31% | ||||||||||||||||||
Year Ended September 30, 2006 | 7.56% | 2,054 | 2.10% | (1.40%) | 2.22% | 23% | ||||||||||||||||||
Class S | ||||||||||||||||||||||||
Year Ended September 30, 2010 | 23.17% | $ 1,822 | 1.10% | (0.56%) | 1.54% | 89% | ||||||||||||||||||
Year Ended September 30, 2009 | (11.35%) | 1,501 | 1.10% | (0.22%) | 1.38% | 62% | ||||||||||||||||||
Year Ended September 30, 2008 | (19.94%) | 1,495 | 1.06% | (0.49%) | 1.18% | 46% | ||||||||||||||||||
Year Ended September 30, 2007 | 14.88% | 1,878 | 1.10% | (0.53%) | 1.21% | 31% | ||||||||||||||||||
Year Ended September 30, 2006 | 8.79% | 1,870 | 1.10% | (0.41%) | 1.23% | 23% |
* | Excludes sales charge. |
** | During the periods, 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. |
See notes to financial statements.
53
FINANCIAL HIGHLIGHTS
|
RBC Enterprise Fund | (Selected data for a share outstanding throughout the years indicated) | |||||||||||||||||||||||||||||||||||
Investment Activities | Distributions | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income/(Loss) | 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 Period | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2010 | $13.37 | (0.05)(a) | 1.11 | (b | ) | 1.06 | — | — | — | $14.43 | ||||||||||||||||||||||||||
Year Ended September 30, 2009 | 16.95 | (0.02)(a) | (1.98 | ) | (b | ) | (2.00 | ) | — | (1.58 | ) | (1.58 | ) | 13.37 | ||||||||||||||||||||||
Year Ended September 30, 2008 | 25.86 | (0.08)(a) | (5.31 | ) | (b | ) | (5.39 | ) | (0.02 | ) | (3.50 | ) | (3.52 | ) | 16.95 | |||||||||||||||||||||
Year Ended September 30, 2007 | 25.12 | 0.03(a) | 2.95 | (b | ) | 2.98 | — | (2.24 | ) | (2.24 | ) | 25.86 | ||||||||||||||||||||||||
Year Ended September 30, 2006 | 26.46 | (0.04)(a) | 1.80 | (b | ) | 1.76 | — | (3.10 | ) | (3.10 | ) | 25.12 | ||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2010 | $13.57 | (0.01)(a) | 1.11 | (b | ) | 1.10 | — | — | — | $14.67 | ||||||||||||||||||||||||||
Year Ended September 30, 2009 | 17.13 | 0.01(a) | (1.99 | ) | (b | ) | (1.98 | ) | — | (1.58 | ) | (1.58 | ) | 13.57 | ||||||||||||||||||||||
Year Ended September 30, 2008 | 26.10 | (0.04)(a) | (5.34 | ) | (b | ) | (5.38 | ) | (0.09 | ) | (3.50 | ) | (3.59 | ) | 17.13 | |||||||||||||||||||||
Year Ended September 30, 2007 | 25.31 | 0.09(a) | 2.96 | (b | ) | 3.05 | (0.02 | ) | (2.24 | ) | (2.26 | ) | 26.10 | |||||||||||||||||||||||
Year Ended September 30, 2006 | 26.57 | 0.02(a) | 1.82 | (b | ) | 1.84 | — | (3.10 | ) | (3.10 | ) | 25.31 | ||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2010 | $12.64 | (0.14)(a) | 1.03 | (b | ) | 0.89 | — | — | — | $13.53 | ||||||||||||||||||||||||||
Year Ended September 30, 2009 | 16.25 | (0.10)(a) | (1.93 | ) | (b | ) | (2.03 | ) | — | (1.58 | ) | (1.58 | ) | 12.64 | ||||||||||||||||||||||
Year Ended September 30, 2008 | 25.09 | (0.22)(a) | (5.12 | ) | (b | ) | (5.34 | ) | — | (3.50 | ) | (3.50 | ) | 16.25 | ||||||||||||||||||||||
Year Ended September 30, 2007 | 24.62 | (0.16)(a) | 2.87 | (b | ) | 2.71 | — | (2.24 | ) | (2.24 | ) | 25.09 | ||||||||||||||||||||||||
Year Ended September 30, 2006 | 26.17 | (0.21)(a) | 1.76 | (b | ) | 1.55 | — | (3.10 | ) | (3.10 | ) | 24.62 | ||||||||||||||||||||||||
Class S | ||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2010 | $13.56 | (0.01)(a) | 1.11 | (b | ) | 1.10 | — | — | — | $14.66 | ||||||||||||||||||||||||||
Year Ended September 30, 2009 | 17.12 | 0.01(a) | (1.99 | ) | (b | ) | (1.98 | ) | — | (1.58 | ) | (1.58 | ) | 13.56 | ||||||||||||||||||||||
Year Ended September 30, 2008 | 26.09 | (0.04)(a) | (5.34 | ) | (b | ) | (5.38 | ) | (0.09 | ) | (3.50 | ) | (3.59 | ) | 17.12 | |||||||||||||||||||||
Year Ended September 30, 2007 | 25.30 | 0.09(a) | 2.96 | (b | ) | 3.05 | (0.02 | ) | (2.24 | ) | (2.26 | ) | 26.09 | |||||||||||||||||||||||
Year Ended September 30, 2006 | 26.56 | 0.02(a) | 1.82 | (b | ) | 1.84 | — | (3.10 | ) | (3.10 | ) | 25.30 |
(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. |
See notes to financial statements.
54
FINANCIAL HIGHLIGHTS
|
RBC Enterprise Fund (cont.) | (Selected data for a share outstanding throughout the years indicated) | |||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Total Return* | Net Assets, End of Period (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 September 30, 2010 | 7.93% | $ 2,426 | 1.33% | (0.35%) | 1.76% | 22% | ||||||||||||||||||
Year Ended September 30, 2009 | (8.83%) | 3,320 | 1.33% | (0.15%) | 2.01% | 20% | ||||||||||||||||||
Year Ended September 30, 2008 | (23.07%) | 6,398 | 1.33% | (0.43%) | 1.80% | 23% | ||||||||||||||||||
Year Ended September 30, 2007 | 12.40% | 18,933 | 1.33% | 0.09% | 1.80% | 22% | ||||||||||||||||||
Year Ended September 30, 2006 | 7.72% | 17,586 | 1.33% | (1.17%) | 1.77% | 27% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
Year Ended September 30, 2010 | 8.11% | $ 25,999 | 1.08% | (0.10%) | 1.51% | 22% | ||||||||||||||||||
Year Ended September 30, 2009 | (8.60%) | 25,543 | 1.08% | 0.06% | 1.50% | 20% | ||||||||||||||||||
Year Ended September 30, 2008 | (22.82%) | 29,388 | 1.08% | (0.19%) | 1.31% | 23% | ||||||||||||||||||
Year Ended September 30, 2007 | 12.62% | 43,096 | 1.08% | 0.35% | 1.30% | 22% | ||||||||||||||||||
Year Ended September 30, 2006 | 8.02% | 34,478 | 1.08% | 0.08% | 1.27% | 27% | ||||||||||||||||||
Class C | ||||||||||||||||||||||||
Year Ended September 30, 2010 | 7.04% | $ 568 | 2.08% | (1.10%) | 2.51% | 22% | ||||||||||||||||||
Year Ended September 30, 2009 | (9.47%) | 778 | 2.08% | (0.92%) | 2.50% | 20% | ||||||||||||||||||
Year Ended September 30, 2008 | (23.61%) | 1,269 | 2.08% | (1.19%) | 2.30% | 23% | ||||||||||||||||||
Year Ended September 30, 2007 | 11.50% | 2,356 | 2.08% | (0.66%) | 2.30% | 22% | ||||||||||||||||||
Year Ended September 30, 2006 | 6.93% | 2,366 | 2.08% | (0.86%) | 2.26% | 27% | ||||||||||||||||||
Class S | ||||||||||||||||||||||||
Year Ended September 30, 2010 | 8.11% | $ 110,248 | 1.08% | (0.10%) | 1.51% | 22% | ||||||||||||||||||
Year Ended September 30, 2009 | (8.60%) | 117,009 | 1.08% | 0.08% | 1.51% | 20% | ||||||||||||||||||
Year Ended September 30, 2008 | (22.83%) | 160,478 | 1.08% | (0.19%) | 1.31% | 23% | ||||||||||||||||||
Year Ended September 30, 2007 | 12.62% | 281,867 | 1.08% | 0.33% | 1.30% | 22% | ||||||||||||||||||
Year Ended September 30, 2006 | 8.02% | 304,960 | 1.08% | 0.06% | 1.27% | 27% |
* | Excludes sales charge. |
** | During the periods, 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. |
See notes to financial statements.
55
FINANCIAL HIGHLIGHTS
|
RBC Small Cap Core Fund | (Selected data for a share outstanding throughout the years indicated) | |||||||||||||||||||||||||||||||||||
Investment Activities | Distributions | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | 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 Period | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2010 | $17.04 | (0.09)(a) | 3.04 | (b) | 2.95 | — | — | — | $19.99 | |||||||||||||||||||||||||||
Year Ended September 30, 2009 | 21.27 | (0.03)(a) | (2.17) | (b) | (2.20) | — | (2.03) | (2.03) | 17.04 | |||||||||||||||||||||||||||
Year Ended September 30, 2008 | 31.72 | (0.17)(a) | (4.79) | (b) | (4.96) | — | (5.49) | (5.49) | 21.27 | |||||||||||||||||||||||||||
Year Ended September 30, 2007 | 31.74 | 0.16(a) | 3.34 | (b) | 3.50 | (0.11) | (3.41) | (3.52) | 31.72 | |||||||||||||||||||||||||||
Year Ended September 30, 2006 | 32.96 | (0.15)(a) | 4.03 | (b) | 3.88 | — | (5.10) | (5.10) | 31.74 | |||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2010 | $16.18 | (0.22)(a) | 2.87 | (b) | 2.65 | — | — | — | $18.83 | |||||||||||||||||||||||||||
Year Ended September 30, 2009 | 20.47 | (0.13)(a) | (2.13) | (b) | (2.26) | — | (2.03) | (2.03) | 16.18 | |||||||||||||||||||||||||||
Year Ended September 30, 2008 | 30.86 | (0.34)(a) | (4.56) | (b) | (4.90) | — | (5.49) | (5.49) | 20.47 | |||||||||||||||||||||||||||
Year Ended September 30, 2007 | 31.08 | (0.12)(a) | 3.31 | (b) | 3.19 | — | (3.41) | (3.41) | 30.86 | |||||||||||||||||||||||||||
Year Ended September 30, 2006 | 32.59 | (0.38)(a) | 3.97 | (b) | 3.59 | — | (5.10) | (5.10) | 31.08 | |||||||||||||||||||||||||||
Class S | ||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2010 | $17.35 | (0.04)(a) | 3.10 | (b) | 3.06 | — | — | — | $20.41 | |||||||||||||||||||||||||||
Year Ended September 30, 2009 | 21.55 | 0.01(a) | (2.18) | (b) | (2.17) | — | (2.03) | (2.03) | 17.35 | |||||||||||||||||||||||||||
Year Ended September 30, 2008 | 31.94 | (0.11)(a) | (4.75) | (b) | (4.86) | (0.04) | (5.49) | (5.53) | 21.55 | |||||||||||||||||||||||||||
Year Ended September 30, 2007 | 31.95 | 0.23(a) | 3.36 | (b) | 3.59 | (0.19) | (3.41) | (3.60) | 31.94 | |||||||||||||||||||||||||||
Year Ended September 30, 2006 | 33.06 | (0.07)(a) | 4.06 | (b) | 3.99 | — | (5.10) | (5.10) | 31.95 |
(a) Per share net investment income (loss) has been calculated using the aver age daily shares method. | (b) Less than $0.01 or $(0.01) per share. |
See notes to financial statements.
56
FINANCIAL HIGHLIGHTS
|
RBC Small Cap Core Fund (cont.) | (Selected data for a share outstanding throughout the years indicated) | |||||||||||||||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||||||
Total Return* | Net Assets, End of Period (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 September 30, 2010 | 17.31% | $519 | 1.47%† | (0.48%) | 2.28% | 31% | ||||||||||||||||||
Year Ended September 30, 2009 | (7.07%) | 656 | 1.55% | (0.20%) | 2.65% | 47% | ||||||||||||||||||
Year Ended September 30, 2008 | (17.15%) | 1,046 | 1.54% | (0.71%) | 2.27% | 47% | ||||||||||||||||||
Year Ended September 30, 2007 | 11.86% | 1,401 | 1.55% | 0.49% | 2.13% | 44% | ||||||||||||||||||
Year Ended September 30, 2006 | 13.85% | 2,382 | 1.55% | (0.49%) | 2.15% | 35% | ||||||||||||||||||
Class C | ||||||||||||||||||||||||
Year Ended September 30, 2010 | 16.38% | $86 | 2.23%† | (1.26%) | 2.99% | 31% | ||||||||||||||||||
Year Ended September 30, 2009 | (7.70%) | 297 | 2.30% | (0.96%) | 3.16% | 47% | ||||||||||||||||||
Year Ended September 30, 2008 | (17.52%) | 384 | 2.29% | (1.47%) | 2.76% | 47% | ||||||||||||||||||
Year Ended September 30, 2007 | 11.01% | 570 | 2.30% | (0.41%) | 2.62% | 44% | ||||||||||||||||||
Year Ended September 30, 2006 | 13.01% | 366 | 2.30% | (1.24%) | 2.65% | 35% | ||||||||||||||||||
Class S | ||||||||||||||||||||||||
Year Ended September 30, 2010 | 17.64% | $43,441 | 1.22%† | (0.21%) | 2.04% | 31% | ||||||||||||||||||
Year Ended September 30, 2009 | (6.81%) | 40,205 | 1.30% | 0.04% | 2.16% | 47% | ||||||||||||||||||
Year Ended September 30, 2008 | (16.68%) | 45,905 | 1.29% | (0.46%) | 1.76% | 47% | ||||||||||||||||||
Year Ended September 30, 2007 | 12.10% | 65,771 | 1.30% | 0.70% | 1.62% | 44% | ||||||||||||||||||
Year Ended September 30, 2006 | 14.18% | 64,750 | 1.30% | (0.22%) | 1.65% | 35% |
* | Excludes sales charge. |
** | During the periods, 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. |
† | Beginning May 26, 2010, the net operating expenses were contractually limited to 1.30%, 2.05% and 1.05% of average daily net assets for Class A, Class C, and Class S respectively. The rate of net expenses to average net assets represents a blended percentage for the year ended September 30, 2010. |
See notes to financial statements.
57
FINANCIAL HIGHLIGHTS
|
RBC Microcap Value Fund (cont.) | (Selected data for a share outstanding throughout the years indicated) |
Investment Activities | Distributions | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss) | 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 Period | ||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2010 | $13.15 | 0.02(a) | 1.44 | (b) | 1.46 | (0.02) | — | (0.02) | $14.59 | |||||||||||||||||||||||||||
Year Ended September 30, 2009 | 16.38 | 0.05(a) | (2.30) | (b) | (2.25) | (0.03) | (0.95) | (0.98) | 13.15 | |||||||||||||||||||||||||||
Year Ended September 30, 2008 | 22.34 | 0.05(a) | (4.49) | (b) | (4.44) | (0.02) | (1.50) | (1.52) | 16.38 | |||||||||||||||||||||||||||
Year Ended September 30, 2007 | 22.17 | 0.03(a) | 1.68 | (b) | 1.71 | — | (1.54) | (1.54) | 22.34 | |||||||||||||||||||||||||||
Year Ended September 30, 2006 | 21.52 | 0.00(a) | 2.53 | (b) | 2.53 | (0.04) | (1.84) | (1.88) | 22.17 | |||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2010 | $12.64 | (0.08)(a) | 1.37 | (b) | 1.29 | — | — | — | $13.93 | |||||||||||||||||||||||||||
Year Ended September 30, 2009 | 15.86 | (0.03)(a) | (2.24) | (b) | (2.27) | — | (0.95) | (0.95) | 12.64 | |||||||||||||||||||||||||||
Year Ended September 30, 2008 | 21.82 | (0.08)(a) | (4.38) | (b) | (4.46) | — | (1.50) | (1.50) | 15.86 | |||||||||||||||||||||||||||
Year Ended September 30, 2007 | 21.84 | (0.13)(a) | 1.65 | (b) | 1.52 | — | (1.54) | (1.54) | 21.82 | |||||||||||||||||||||||||||
Year Ended September 30, 2006 | 21.33 | (0.16)(a) | 2.51 | (b) | 2.35 | — | (1.84) | (1.84) | 21.84 | |||||||||||||||||||||||||||
Class S | ||||||||||||||||||||||||||||||||||||
Year Ended September 30, 2010 | $13.19 | 0.05(a) | 1.44 | (b) | 1.49 | (0.06) | — | (0.06) | $14.62 | |||||||||||||||||||||||||||
Year Ended September 30, 2009 | 16.47 | 0.08(a) | (2.32) | (b) | (2.24) | (0.09) | (0.95) | (1.04) | 13.19 | |||||||||||||||||||||||||||
Year Ended September 30, 2008 | 22.47 | 0.10(a) | (4.52) | (b) | (4.42) | (0.08) | (1.50) | (1.58) | 16.47 | |||||||||||||||||||||||||||
Year Ended September 30, 2007 | 22.27 | 0.09(a) | 1.68 | (b) | 1.77 | (0.03) | (1.54) | (1.57) | 22.47 | |||||||||||||||||||||||||||
Year Ended September 30, 2006 | 21.59 | 0.05(a) | 2.55 | (b) | 2.60 | (0.08) | (1.84) | (1.92) | 22.27 |
(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. |
See notes to financial statements.
58
FINANCIAL HIGHLIGHTS
|
RBC Microcap Value Fund (cont.) | (Selected data for a share outstanding throughout the years indicated) |
Ratios/Supplemental Data | ||||||||||||||||||||||||
Total Return* | Net Assets, End of Period (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 September 30, 2010 | 11.12% | $ 6,968 | 1.32% | 0.12% | 1.64% | 9% | ||||||||||||||||||
Year Ended September 30, 2009 | (11.74%) | 8,358 | 1.32% | 0.50% | 1.87% | 17% | ||||||||||||||||||
Year Ended September 30, 2008 | (20.74%) | 19,641 | 1.31% | 0.29% | 1.74% | 18% | ||||||||||||||||||
Year Ended September 30, 2007 | 7.68% | 43,004 | 1.32% | 0.14% | 1.78% | 17% | ||||||||||||||||||
Year Ended September 30, 2006 | 12.67% | 29,186 | 1.33% | 0.01% | 1.74% | 20% | ||||||||||||||||||
Class C | ||||||||||||||||||||||||
Year Ended September 30, 2010 | 10.21% | $850 | 2.07% | (0.63%) | 2.39% | 9% | ||||||||||||||||||
Year Ended September 30, 2009 | (12.36%) | 1,124 | 2.07% | (0.25%) | 2.37% | 17% | ||||||||||||||||||
Year Ended September 30, 2008 | (21.34%) | 1,723 | 2.06% | (0.45%) | 2.23% | 18% | ||||||||||||||||||
Year Ended September 30, 2007 | 6.89% | 3,981 | 2.07% | (0.60%) | 2.28% | 17% | ||||||||||||||||||
Year Ended September 30, 2006 | 11.86% | 2,073 | 2.08% | (0.73%) | 2.25% | 20% | ||||||||||||||||||
Class S | ||||||||||||||||||||||||
Year Ended September 30, 2010 | 11.33% | $ 145,979 | 1.07% | 0.37% | 1.39% | 9% | ||||||||||||||||||
Year Ended September 30, 2009 | (11.47%) | 162,465 | 1.07% | 0.76% | 1.37% | 17% | ||||||||||||||||||
Year Ended September 30, 2008 | (20.53%) | 261,041 | 1.07% | 0.56% | 1.26% | 18% | ||||||||||||||||||
Year Ended September 30, 2007 | 7.95% | 318,947 | 1.07% | 0.39% | 1.27% | 17% | ||||||||||||||||||
Year Ended September 30, 2006 | 12.97% | 261,594 | 1.09% | 0.24% | 1.23% | 20% |
* | Excludes sales charge. |
** | During the periods, 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. |
See notes to financial statements.
59
FINANCIAL HIGHLIGHTS
|
RBC Mid Cap Value Fund | (Selected data for a share outstanding throughout the years indicated) |
Investment Activities | Distributions | |||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income/(Loss) | 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 Period | ||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||
Period Ended September 30, 2010(a) | $ 10.00 | 0.02 | (b) | 0.78 | — | 0.80 | — | — | — | $ 10.80 |
(a) | For the period from December 31, 2009 (commencement of operations) to September 30, 2010. |
(b) | Per share net investment income (loss) has been calculated using the aver- age daily shares method. |
See notes to financial statements.
60
FINANCIAL HIGHLIGHTS
|
RBC Mid Cap Value Fund (cont.) | (Selected data for a share outstanding throughout the years indicated) |
Ratios/Supplemental Data | ||||||||||||||||||||||||
Total Return* | Net Assets, End of Period (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 I | ||||||||||||||||||||||||
Period Ended September 30, 2010(a) | 8.00%(c) | $ 1,753 | 0.90%(d) | 0.26%(d) | 12.64%(d) | 161% |
* | Excludes sales charge. |
** | During the periods, 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. |
(a) For the period from December 31, 2009 (commencement of operations) to September 30, 2010. | (d) Annualized. |
(c) | Not annualized. |
See notes to financial statements.
61
|
September 30, 2010
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. Predecessor funds to the Trust were reorganized as portfolios of the Trust effective April 16, 2004. This annual report includes the following five investment portfolios (“Funds”):
- RBC SMID Cap Growth Fund (“SMID Cap Growth Fund”)
(formerly know as RBC Mid Cap Growth Fund (“Mid Cap Growth Fund”))
- RBC Enterprise Fund (“Enterprise Fund”)
- RBC Small Cap Core Fund (“Small Cap Core Fund”)
- RBC Microcap Value Fund (“Microcap Value Fund”)
- RBC Mid Cap Value Fund (“Mid Cap Value Fund”)
The SMID Cap Growth and Enterprise Funds offer four share classes: Class A, Class C, Class I and Class S shares. The Small Cap Core and Microcap Value Funds offer three share classes: Class A, Class C, and Class S shares. The Mid Cap Value Fund offers Class I shares. Class R shares were converted to Class A shares for the SMID Cap Growth Fund, Enterprise Fund, Small Cap Core Fund and the Microcap Value Fund on September 17, 2010. 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 C shares are offered at net asset value (i.e. no front-end sales charge), but are subject to a CDSC of 1.00% for redemptions within 12 months of purchase. Class I shares (intended for investors meeting certain investment minimum thresholds) and Class S shares are not subject to either a front-end sales charge or a CDSC.
RBC Global Asset Management (U.S.) Inc. (“RBC GAM (US)”) acts as the investment advisor for the Funds. The officers of the Trust (“Fund Management”) are also employees of RBC GAM (US) or its affiliates or of BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”), the co-administrator.
On July 1, 2010, The PNC Financial Services Group, Inc. sold the outstanding stock of PNC Global Investment Servicing Inc. to The Bank of New York Mellon Corporation. At the closing of the sale, PNC Global Investment Servicing (U.S.) Inc. changed their name to BNY Mellon Investment Servicing (US) Inc.
2. Significant Accounting Policies
Summarized below are the significant accounting policies of the Funds. These policies conform to accounting principles generally accepted in the United States of America (“GAAP”). Fund Management follows these policies when preparing financial statements. 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.
Security Valuation:
Equity securities are generally valued on the basis of prices furnished by pricing services approved by the Trust’s Board of Trustees (the “Board”). Equity securities traded on one or more U.S. exchanges shall be valued at the last available quoted sale price on the primary trading exchange as of the valuation time. Valuation time is as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Standard Time). If there was no sale on the primary exchange on the day the net asset value is calculated, the most recent bid quotation generally will be used. In cases where neither closing prices nor bid prices are available, or where those prices do not accurately reflect the
62
NOTES TO FINANCIAL STATEMENTS
|
value of the security, a security will be valued in accordance with the Funds’ approved pricing and valuation procedures to determine a security’s fair value. These procedures are also used to determine the fair value of a security if a significant event occurs that materially affects the value of the security. Investments in open-end investment companies are valued at net asset value. Short-term securities with less than 60 days to maturity at time of purchase are valued at amortized cost.
Fair Value Measurements:
Various input levels are used in determining the fair value of investments which 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 - 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.
— Level 3 - 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.
The summary of inputs used to determine the fair value of the Fund’s investments as of September 30, 2010 is as follows:
Funds | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Total | ||||||||||||
Investments in Securities | ||||||||||||||||
SMID Cap Growth Fund | $ | 64,422,589 | (a) | $ | — | $ | — | $ | 64,422,589 | |||||||
Enterprise Fund | 138,211,370 | (a) | — | — | 138,211,370 | |||||||||||
Small Cap Core Fund | 43,636,358 | (a) | — | — | 43,636,358 | |||||||||||
Microcap Value Fund | 150,425,883 | (a) | — | — | 150,425,883 | |||||||||||
Mid Cap Value Fund | 1,826,390 | (a) | — | — | 1,826,390 |
(a) The breakdown of the Fund’s investments into major categories is disclosed in the Schedules of Portfolio Investments.
The Funds did not have any liabilities that were measured at fair value on a recurring basis at September 30, 2010.
During the year ended September 30, 2010, the Funds recognized no significant transfers to/from level 1 or 2. Additional disclosure surrounding the activity in level 3 fair value measurement will be effective for fiscal years beginning after December 15, 2010. Management is currently evaluating the impact it will have on its financial statement disclosures.
Repurchase Agreements:
The Funds may enter into repurchase agreements with primary dealers that report to the Federal Reserve Bank of New York or the 100 largest U.S. commercial banks (as measured by domestic deposits) who are deemed creditworthy under guidelines approved by the Board. 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 as collateral for repurchase agreements are held by U.S. Bank N.A. the Funds’ custodian bank until maturity of the repurchase agreement. The Funds have procedures to secure additional collateral, if needed, to ensure that the daily market value of the collateral remains in excess
63
NOTES TO FINANCIAL STATEMENTS
|
of the repurchase agreement in the event of a default. There were no Repurchase Agreements held at September 30, 2010.
Investment Transactions and Income:
Investment transactions are recorded on one business day after trade date, except on the last day of each fiscal quarter end, when they are recorded on trade date. Dividend income is recorded on the ex-dividend date. 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 adviser fees. Expenses incurred by the Trust, such as trustee or legal fees, are allocated among each of the Funds either proportionately based upon each Fund’s relative net assets or using another reasonable basis such as equally across all Funds, depending on the nature of the expense. Individual share classes within a Fund are charged expenses specific to that class, such as distribution 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. Certain distributions received from REITs during the period, which are return of capital, are recorded as a reduction to the cost of the individual REIT.
Distributions to Shareholders:
Each Fund pays out any income that it receives, less expenses, in the form of dividends and capital gains to its shareholders. Income dividends and capital gains on 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 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., net operating loss, foreign currency transactions, distribution redesignations and prior year spillbacks ), they are reclassified within a Fund’s capital accounts based on their federal tax basis treatment. Such differences are not reflected in the calculation of the Financial Highlights.
For the year ended September 30, 2010, permanent difference reclassification amounts were as follows:
Increase/(Decrease) Paid in Capital | Increase/(Decrease) Accumulated Net Investment Income | Increase/(Decrease) Accumulated Realized Gain/(Loss) | ||||||||||
SMID Cap Growth Fund | $(391,733) | $391,733 | $ — | |||||||||
Enterprise Fund | (494,043) | 195,183 | 298,860 | |||||||||
Small Cap Core Fund | (219,899) | 97,858 | 122,041 | |||||||||
Microcap Value Fund | — | 54,333 | (54,333) | |||||||||
Mid Cap Value Fund | (65,158) | 63,874 | 1,284 |
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 Fund’s 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 advisory contracts, 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:
64
NOTES TO FINANCIAL STATEMENTS
|
Average Daily Net Assets of Fund | Annual Rate | |||
SMID Cap Growth Fund | All Net Assets | 0.70% | ||
Enterprise Fund | Up to $30 million | 1.40% | ||
Over $30 million | 0.90% | |||
Small Cap Core Fund | Up to $30 million | 1.40% | ||
Over $30 million | 0.90% | |||
Microcap Value Fund | All Net Assets | 0.90% | ||
Mid Cap Value Fund | All Net Assets | 0.70% |
On September 29, 2010, the Board approved a revised investment advisory agreement with respect to Enterprise Fund and Small Cap Core Fund. Effective November 22, 2010, these two Funds will each pay RBC GAM (US) a monthly fee based on a percentage of the average daily net assets of the Funds shown below:
Average Daily Net Assets of Fund | Annual Rate | |||
Enterprise Fund | Up to $30 million | 1.00% | ||
Over $30 million | 0.90% | |||
Small Cap Core Fund | Up to $30 million | 1.00% | ||
Over $30 million | 0.90% |
RBC GAM (US) has contractually agreed to waive fees and/or make payments in order to keep total operating expenses of the Class S shares of each Fund and Class I shares of each Fund (except Small Cap Core Fund and Microcap Value Fund, which do not offer Class I shares) to the following levels. This expense limitation agreement is in place until January 31, 2011.
Annual Rate | ||||
SMID Cap Growth Fund | 1.10% | |||
Enterprise Fund | 1.08% | |||
Small Cap Core Fund | 1.05%* | |||
Microcap Value Fund | 1.07% | |||
Mid Cap Value Fund | 0.90% |
* Effective May 26, 2010, the Small Cap Core Fund changed the annual rate under the expense limitation agreement to 1.05%. For the period of October 1, 2009 to May 25, 2010, the annual rate was 1.30%
Classes A and C vary from these limits only by the addition of class-specific 12b-1 fees. Each Fund will carry forward, for a period not to exceed 12 months from the date on which a waiver or reimbursement is made by RBC GAM (US), any expenses in excess of the expense limitation and repay RBC GAM (US) such amounts, provided the Fund is able to effect such repayment and remain in compliance with the expense limitation stated above. At September 30, 2010, the amounts subject to possible recoupment under the expense limitation agreement are $263,454, $604,931, $359,374, $521,698 and $144,064 for SMID Cap Growth Fund, Enterprise Fund, Small Cap Core Fund, Microcap Value Fund and Mid Cap Value Fund, respectively.
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.
RBC GAM (US) serves as co-administrator to the Funds. 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) receives from each Fund a fee, payable monthly, at the annual rate of 0.075% of each Fund’s average daily net assets. BNY Mellon receives a fee for its services payable by the Funds based on the Funds’ average net
65
NOTES TO FINANCIAL STATEMENTS
|
assets. RBC GAM (US)’s fee is listed as “Administration fees” in the Statements of Operations. 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 adviser or the administrator. Such Officers and Trustees receive no compensation from the Funds for serving in their respective roles.
The RBC Funds currently pay the independent Trustees (Trustees of the Trust who are not directors, officers or employees of the adviser, administrator or distributor) an annual retainer of $30,000. 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 $5,000 for each in-person Board meeting attended, a meeting fee of $1,000 for each telephonic or Special Board meeting attended, and a $1,000 fee ($1,500 effective October 1, 2010) for each Board committee meeting attended and are reimbursed for all out-of-pocket expenses relating to attendance at such meetings.
4. Fund Distribution
Each of the Funds has adopted a Master Distribution 12b-1 Plan (the “Plan”) in which Tamarack Distributors Inc. (through February 15, 2010), and Quasar Distributors LLC (effective February 16, 2010) (the “Distributor”) acts as the Funds’ distributor. Tamarack Distributors, Inc. was an affiliate of RBC GAM (US). Quasar Distributors LLC is unaffiliated. The Plan permits each Fund to make payments for or to reimburse the Distributor monthly for distribution-related costs and expenses of marketing shares of each share class covered under the Plan; and/or for providing shareholder services. The following chart shows the current Plan fee rate for each class.
Class A | Class C | |||
12b-1 Plan Fee | 0.25%* | 1.00% |
* Under the 12b-1 plan, the maximum fee rate for Class A shares is 0.50%. Currently the Board of Trustees has approved an annual limit of 0.25%.
Plan fees are based on average daily net assets of the applicable class. 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 a Plan fee voluntarily, in whole or in part.
For the year ended September 30, 2010, Tamarack Distributors, Inc. received commissions of $557 from front-end sales charges of Class A shares of the Funds, of which $180 was paid to affiliated broker-dealers, and Quasar Distributors LLC received commissions of $2,686 from front-end sales charges of Class A shares of the Funds, of which $736 was paid to affiliated broker-dealers, and the remainder was either paid to unaffiliated broker-dealers or retained by the Distributors.
Quasar Distributors LLC also received $31 from CDSC fees from Class C shares of the Funds. The Distributors received no CDSC fees from Class A shares of the Funds during the year ended September 30, 2010.
66
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 September 30, 2010 were as follows:
Purchases | Sales | |||||||||||
SMID Cap Growth Fund | $ | 52,037,539 | $ | 60,716,895 | ||||||||
Enterprise Fund | 29,655,632 | 47,611,783 | ||||||||||
Small Cap Core Fund | 13,062,494 | 16,636,775 | ||||||||||
Microcap Value Fund | 15,311,829 | 50,208,986 | ||||||||||
Mid Cap Value Fund | 4,198,046 | 2,563,216 |
Within the guidelines established by the Funds to always seek best execution when entering into portfolio transactions, certain of the Funds use directed brokerage transactions through LJR Recapture Services (“LJR”) and its correspondent brokers. A portion of the commissions paid for portfolio transactions under this program are reimbursed to the Funds and are recorded as net realized gains from investment transactions in the 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 shares of the Funds are summarized on the following pages:
SMID Cap Growth Fund | Enterprise Fund | |||||||||||||||
For the Year Ended September 30, 2010 | For the Year Ended September 30, 2009 | For the Year Ended September 30, 2010 | For the Year Ended September 30, 2009 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued and automatic conversion of shares | $ | 1,261,111 | $ | 1,124,337 | $ | 143,799 | $ | 129,212 | ||||||||
Distributions reinvested | — | 200,982 | — | 447,890 | ||||||||||||
Cost of shares redeemed | (2,989,849 | ) | (3,925,430 | ) | (1,231,670 | ) | (2,033,733 | ) | ||||||||
Change in Class A | $ | (1,728,738 | ) | $ | (2,600,111 | ) | $ | (1,087,871 | ) | $ | (1,456,631 | ) | ||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 5,807,346 | $ | 10,903,862 | $ | 2,078,172 | $ | 2,115,474 | ||||||||
Distributions reinvested | — | 479,097 | — | 2,634,071 | ||||||||||||
Cost of shares redeemed | (12,418,052 | ) | (23,718,249 | ) | (3,565,672 | ) | (3,145,900 | ) | ||||||||
Change in Class I | $ | (6,610,706 | ) | $ | (12,335,290 | ) | $ | (1,487,500 | ) | $ | 1,603,645 | |||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | 999 | $ | 3,067 | $ | 73,450 | ||||||||
Distributions reinvested | — | 1,093 | — | 104,090 | ||||||||||||
Cost of shares redeemed | (44,116 | ) | (15,169 | ) | (251,543 | ) | (393,832 | ) | ||||||||
Change in Class C | $ | (44,116 | ) | $ | (13,077 | ) | $ | (248,476 | ) | $ | (216,292 | ) | ||||
Class R | ||||||||||||||||
Proceeds from shares issued | $ | 261 | $ | 11,802 | $ | 714 | $ | 13,878 | ||||||||
Distributions reinvested | — | 77 | — | 694 | ||||||||||||
Cost of shares redeemed and automatic conversion of shares | (22,822 | ) | (3,271 | ) | (43,439 | ) | (10,625 | ) | ||||||||
Change in Class R | $ | (22,561 | ) | $ | 8,608 | $ | (42,725 | ) | $ | 3,947 | ||||||
67
NOTES TO FINANCIAL STATEMENTS
|
SMID Cap Growth Fund | Enterprise Fund | |||||||||||||||
For the Year Ended September 30, 2010 | For the Year Ended September 30, 2009 | For the Year Ended September 30, 2010 | For the Year Ended September 30, 2009 | |||||||||||||
(cont) | ||||||||||||||||
Class S | ||||||||||||||||
Proceeds from shares issued | $ | 64,826 | $ | 323,104 | $ | 535,101 | $ | 4,569,044 | ||||||||
Distributions reinvested | — | 11,859 | — | 13,306,251 | ||||||||||||
Cost of shares redeemed | (94,368 | ) | (168,606 | ) | (15,738,170 | ) | (26,234,084 | ) | ||||||||
Change in Class S | $ | (29,542 | ) | $ | 166,357 | $ | (15,203,069 | ) | $ | (8,358,789 | ) | |||||
Change in net assets resulting from capital transactions | $ | (8,435,663 | ) | $ | (14,773,513 | ) | $ | (18,069,641 | ) | $ | (8,424,120 | ) | ||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued and automatic conversion of shares | 125,150 | 157,679 | 10,663 | 10,991 | ||||||||||||
Reinvested | — | 29,383 | — | 44,214 | ||||||||||||
Redeemed | (302,606 | ) | (507,416 | ) | (90,815 | ) | (184,327 | ) | ||||||||
Change in Class A | (177,456 | ) | (320,354 | ) | (80,152 | ) | (129,122 | ) | ||||||||
Class I | ||||||||||||||||
Issued | 554,729 | 1,396,055 | 150,826 | 193,198 | ||||||||||||
Reinvested | — | 67,384 | — | 256,732 | ||||||||||||
Redeemed | (1,281,686 | ) | (2,906,050 | ) | (261,179 | ) | (282,883 | ) | ||||||||
Change in Class I | (726,957 | ) | (1,442,611 | ) | (110,353 | ) | 167,047 | |||||||||
Class C | ||||||||||||||||
Issued | — | 151 | 245 | 7,560 | ||||||||||||
Reinvested | — | 166 | — | 10,809 | ||||||||||||
Redeemed | (5,044 | ) | (1,965 | ) | (19,808 | ) | (34,862 | ) | ||||||||
Change in Class C | (5,044 | ) | (1,648 | ) | (19,563 | ) | (16,493 | ) | ||||||||
Class R | ||||||||||||||||
Issued | 27 | 1,757 | 55 | 1,576 | ||||||||||||
Reinvested | — | 11 | — | 70 | ||||||||||||
Redeemed and automatic conversion of shares | (2,262 | ) | (461 | ) | (3,219 | ) | (940 | ) | ||||||||
Change in Class R | (2,235 | ) | 1,307 | (3,164 | ) | 706 | ||||||||||
Class S | ||||||||||||||||
Issued | 6,427 | 39,023 | 38,395 | 387,721 | ||||||||||||
Reinvested | — | 1,666 | — | 1,298,171 | ||||||||||||
Redeemed | (8,840 | ) | (20,114 | ) | (1,147,828 | ) | (2,430,392 | ) | ||||||||
Change in Class S | (2,413 | ) | 20,575 | (1,109,433 | ) | (744,500 | ) | |||||||||
Change in shares resulting from capital transactions | (914,105 | ) | (1,742,731 | ) | (1,322,665 | ) | (722,362 | ) | ||||||||
68
NOTES TO FINANCIAL STATEMENTS
|
Small Cap Core Fund | Microcap Value Fund | |||||||||||||||
For the Year Ended September 30, 2010 | For the Year Ended September 30, 2009 | For the Year Ended September 30, 2010 | For the Year Ended September 30, 2009 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued and automatic conversion of shares | $ | 43,795 | $ | 90,664 | $ | 779,295 | $ | 905,750 | ||||||||
Distributions reinvested | — | 69,291 | 8,406 | 629,432 | ||||||||||||
Cost of shares redeemed | (263,834 | ) | (314,173 | ) | (2,944,244 | ) | (7,457,672 | ) | ||||||||
Change in Class A | $ | (220,039 | ) | $ | (154,218 | ) | $ | (2,156,543 | ) | $ | (5,922,490 | ) | ||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | 12,932 | $ | — | $ | — | ||||||||
Distributions reinvested | — | 7,995 | — | — | ||||||||||||
Cost of shares redeemed | — | (62,528 | ) | — | — | |||||||||||
Change in Class I | $ | — | $ | (41,601 | ) | $ | — | $ | — | |||||||
Class C | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | 18,057 | $ | 42,984 | $ | 61,996 | ||||||||
Distributions reinvested | — | 36,301 | — | 88,784 | ||||||||||||
Cost of shares redeemed | (240,507 | ) | (65,101 | ) | (406,090 | ) | (355,759 | ) | ||||||||
Change in Class C | $ | (240,507 | ) | $ | (10,743 | ) | $ | (363,106 | ) | $ | (204,979 | ) | ||||
Class R | ||||||||||||||||
Proceeds from shares issued | $ | 11,429 | $ | 12,880 | $ | 400,301 | $ | 136,538 | ||||||||
Distributions reinvested | — | 358 | — | 35,127 | ||||||||||||
Cost of shares redeemed and automatic conversion of shares | (40,820 | ) | (2,080 | ) | (503,076 | ) | (514,658 | ) | ||||||||
Change in Class R | $ | (29,391 | ) | $ | 11,158 | $ | (102,775 | ) | $ | (342,993 | ) | |||||
Class S | ||||||||||||||||
Proceeds from shares issued | $ | 5,370,575 | $ | 2,192,792 | $ | 25,298,449 | $ | 62,256,861 | ||||||||
Distributions reinvested | — | 3,985,782 | 646,738 | 13,534,444 | ||||||||||||
Cost of shares redeemed | (9,160,736 | ) | (4,317,013 | ) | (57,747,717 | ) | (119,637,116 | ) | ||||||||
Change in Class S | $ | (3,790,161 | ) | $ | 1,861,561 | $ | (31,802,530 | ) | $ | (43,845,811 | ) | |||||
Change in net assets resulting from capital transactions | $ | (4,280,098 | ) | $ | 1,666,157 | $ | (34,424,954 | ) | $ | (50,316,273 | ) | |||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued and automatic conversion of shares | 2,379 | 6,602 | 55,684 | 86,004 | ||||||||||||
Reinvested | — | 5,473 | 636 | 63,644 | ||||||||||||
Redeemed | (14,929 | ) | (22,761 | ) | (214,031 | ) | (713,282 | ) | ||||||||
Change in Class A | (12,550 | ) | (10,686 | ) | (157,711 | ) | (563,634 | ) | ||||||||
Class I | ||||||||||||||||
Issued | — | 928 | — | — | ||||||||||||
Reinvested | — | 622 | — | — | ||||||||||||
Redeemed | — | (5,497 | ) | — | — | |||||||||||
Change in Class I | — | (3,947 | ) | — | — | |||||||||||
Class C | ||||||||||||||||
Issued | — | 1,421 | 3,062 | 5,751 | ||||||||||||
Reinvested | — | 3,005 | — | 9,297 | ||||||||||||
Redeemed | (13,839 | ) | (4,793 | ) | (31,012 | ) | (34,791 | ) | ||||||||
Change in Class C | (13,839 | ) | (367 | ) | (27,950 | ) | (19,743 | ) | ||||||||
69
NOTES TO FINANCIAL STATEMENTS
|
Small Cap Core Fund | Microcap Value Fund | |||||||||||||||
For the Year Ended September 30, 2010 | For the Year Ended September 30, 2009 | For the Year Ended September 30, 2010 | For the Year Ended September 30, 2009 | |||||||||||||
(cont) | ||||||||||||||||
Class R | ||||||||||||||||
Issued | 630 | 1,194 | 29,103 | 13,272 | ||||||||||||
Reinvested | — | 28 | — | 3,581 | ||||||||||||
Redeemed and automatic conversion of shares | (2,183 | ) | (205 | ) | (35,808 | ) | (45,703 | ) | ||||||||
Change in Class R | (1,553 | ) | 1,017 | (6,705 | ) | (28,850 | ) | |||||||||
Class S | ||||||||||||||||
Issued | 284,770 | 178,699 | 1,763,528 | 5,935,929 | ||||||||||||
Reinvested | — | 309,936 | 48,959 | 1,368,498 | ||||||||||||
Redeemed | (472,975 | ) | (302,059 | ) | (4,145,810 | ) | (10,833,412 | ) | ||||||||
Change in Class S | (188,205 | ) | 186,576 | (2,333,323 | ) | (3,528,985 | ) | |||||||||
Change in shares resulting from capital transactions | (216,147 | ) | 172,593 | (2,525,689 | ) | (4,141,212 | ) | |||||||||
Mid Cap Value Fund | ||
For the Period Ended September 30, 2010(a) |
CAPITAL TRANSACTIONS: | ||||
Class I | ||||
Proceeds from shares issued | $ | 1,634,500 | ||
Distributions reinvested | — | |||
Cost of shares redeemed | — | |||
Change in net assets resulting from capital transactions | $ | 1,634,500 | ||
SHARE TRANSACTIONS: | ||||
Class I | ||||
Issued | 162,274 | |||
Reinvested | — | |||
Redeemed | — | |||
Change in shares resulting from capital transactions | 162,274 | |||
(a) | For the period from December 31, 2009 (commencement of operations) to September 30, 2010. |
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.
Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (for the tax years ended September 30 of the years 2007, 2008, 2009 and 2010), 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
70
NOTES TO FINANCIAL STATEMENTS
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statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
As of September 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation (depreciation) for each Fund were as follows:
Tax Cost of Securities | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | |||||||||||||
SMID Cap Growth Fund | $ | 52,844,330 | $ | 13,882,416 | $ | (2,304,157) | $ | 11,578,259 | ||||||||
Enterprise Fund | 125,955,563 | 36,313,307 | (24,057,500) | 12,255,807 | ||||||||||||
Small Cap Core Fund | 33,118,655 | 14,065,196 | (3,547,493) | 10,517,703 | ||||||||||||
Microcap Value Fund | 180,184,055 | 26,701,311 | (56,459,483) | (29,758,172) | ||||||||||||
Mid Cap Value Fund | 1,763,639 | 109,241 | (46,490) | 62,751 | ||||||||||||
The tax character of distributions during the fiscal year ended September 30, 2010 was as follows:
|
| |||||||||||||||
Distributions Paid From | ||||||||||||||||
Ordinary Income | Net Long Term Capital Gains | Total Taxable Distributions | Total Distributions Paid | |||||||||||||
SMID Cap Growth Fund | $ | — | $ | — | $ | — | $ | — | ||||||||
Enterprise Fund | — | — | — | — | ||||||||||||
Small Cap Core Fund | — | — | — | — | ||||||||||||
Microcap Value Fund | 686,820 | — | 686,820 | 686,820 | ||||||||||||
Mid Cap Value Fund | — | — | — | — | ||||||||||||
The tax character of distributions during the fiscal year ended September 30, 2009 was as follows:
|
| |||||||||||||||
Distributions Paid From | ||||||||||||||||
Ordinary Income | Net Long Term Capital Gains | Total Taxable Distributions | Total Distributions Paid | |||||||||||||
SMID Cap Growth Fund | $ | — | $ | 696,483 | $ | 696,483 | $ | 696,483 | ||||||||
Enterprise Fund | — | 17,278,183 | 17,278,183 | 17,278,183 | ||||||||||||
Small Cap Core Fund | — | 4,245,861 | 4,245,861 | 4,245,861 | ||||||||||||
Microcap Value Fund | 1,990,394 | 13,105,436 | 15,095,830 | 15,095,830 | ||||||||||||
As of September 30, 2010, the components of accumulated earnings/(losses) on a tax basis were as follows: |
Undistributed Ordinary Income | Undistributed Short Term Gain | Accumulated Earnings | Accumulated Capital Loss Carryforwards | Deferred Post October Losses | Unrealized Appreciation/ (Depreciation) | Total Accumulated Earnings/(Losses) | ||||||||||||||||||||||
SMID Cap Growth Fund | $ | — | $ | — | $ | — | $ | (5,796,462) | $ | — | $ | 11,578,259 | $ | 5,781,797 | ||||||||||||||
Enterprise Fund | — | — | — | (18,019,290) | (10,319,912) | 12,255,807 | (16,083,395) | |||||||||||||||||||||
Small Cap Core Fund | — | — | — | (2,738,192) | — | 10,517,703 | 7,779,511 | |||||||||||||||||||||
Microcap Value Fund | 597,754 | — | 597,754 | (24,228,055) | (2,929,944) | (29,758,545) | (56,318,790) | |||||||||||||||||||||
Mid Cap Value Fund | 67,068 | 53,905 | 120,973 | — | — | 62,751 | 183,724 |
71
NOTES TO FINANCIAL STATEMENTS
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As of September 30, 2010, the Funds had capital loss carryforwards for federal income tax purposes as follows:
Capital Loss Carryforward | Expires | |||||||
SMID Cap Growth Fund | $ | 1,284,433 | 2017 | |||||
4,512,029 | 2018 | |||||||
Enterprise Fund | 81,333 | 2017 | ||||||
17,937,957 | 2018 | |||||||
Small Cap Core Fund | 547,840 | 2017 | ||||||
2,190,352 | 2018 | |||||||
Microcap Value Fund | 1,092,919 | 2017 | ||||||
23,135,136 | 2018 |
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 Adviser. 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 statement of changes in net assets.
During the year ended September 30, 2010, the redemption fees collected by each Fund were as follows:
Redemption Fees | ||||
SMID Cap Growth Fund | $448 | |||
Enterprise Fund | 12 | |||
Small Cap Core Fund | 2 | |||
Microcap Value Fund | 915 | |||
Mid Cap Value Fund | — |
9. Soft Dollars
The term soft dollars generally refers to arrangements in which services other than trade execution are received from a broker-dealer. Federal securities laws permit a fund advisor to incur commission charges on behalf of a Fund that are higher than another broker dealer would have charged if the advisor believes the charges are reasonable in relation to the brokerage and research services received. RBC GAM (US) has a fiduciary duty to the shareholders of the Funds to seek the best execution price for all of the Funds’ securities transactions. Fund management believes that using soft dollars to purchase brokerage and research services may, in certain cases, be in a Fund’s best interest. As of September 30, 2010, certain of the Funds used soft dollar arrangements on a limited basis. Fund management continues to closely monitor its current use of soft dollars, in addition to regulatory developments in this area for any possible impact on Fund policies.
10. Subsequent Events
Management has evaluated the impact of subsequent events of the Funds and has determined that there are no subsequent events that require recognition or disclosure in the financial statements.
72
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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To the Shareholders and Board of Trustees of RBC Funds Trust
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of RBC SMID Cap Growth Fund (formerly known as RBC Mid Cap Growth Fund), RBC Enterprise Fund, RBC Small Cap Core Fund and RBC Microcap Value Fund (collectively the “Funds”), four of the portfolios constituting the RBC Funds Trust (the “Trust”), as of September 30, 2010, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. We have also audited the accompanying statement of assets and liabilities, including the schedule of portfolio investments, for RBC Mid Cap Value Fund (together with the Funds, the “RBC Funds”), one of the portfolios constituting the RBC Funds Trust, as of September 30, 2010 and the statements of operations and changes in net assets and financial highlights for the period from December 31, 2009 (commencement of operations) through September 30, 2010. These financial statements and financial highlights are the responsibility of the RBC Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2010, by correspondence with the RBC Funds’ custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the portfolios of RBC Funds Trust referred to above, as of September 30, 2010, the results of their operations, the changes in their net assets, and the financial highlights for the respective stated periods, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Chicago, Illinois
November 23, 2010
73
OTHER FEDERAL INCOME TAX INFORMATION (UNAUDITED)
|
For the fiscal year ended September 30, 2010, certain dividends paid by the Funds may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Reconciliation Act of 2003. The Funds intend to designate the maximum amount allowable as taxed at a maximum rate of 15%. Complete information will be reported in conjunction with your 2010 Form 1099-DIV.
All designations are based on financial information available as of the date of this annual report and, accordingly, are subject to change. For each item, it is the intention of the Funds to designate the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.
For the year ended September 30, 2010, the following Fund had a qualified dividend income percentage of:
Qualified Dividend Income | ||||
Microcap Value Fund | 100% |
For corporate shareholders, the following percentage of the total ordinary income distributions paid during the fiscal year ended September 30, 2010 qualify for the corporate dividends received deduction:
Dividends Received Deduction | ||||
Microcap Value Fund | 100% |
The following Fund designates a portion of the income dividends distributed during the fiscal year ended September 30, 2010, as qualified interest income as defined in the Internal Revenue Code:
Qualified Interest Income | ||||
Microcap Value Fund | 0.90% |
74
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Independent Trustees(1)
T. Geron Bell (69)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: President of Twins Sports, Inc. (parent company of the Minnesota Twins) (2002-present); prior thereto President of the Minnesota Twins Baseball Club Incorporated (1987-2002)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: None
Lucy Hancock Bode (59)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: Healthcare consultant (self-employed)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: BioSignia
Leslie H. Garner Jr. (60)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: President and CEO, The Greater Cedar Rapids Community Foundation (2010 to present); previously, President, Cornell College
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: None
Ronald James (59)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: President and Chief Executive Officer, Center for Ethical Business Cultures (2000-present)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: Best Buy Co. Inc.; Bremer Financial Corporation
John A. MacDonald (61)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: Vice President and Treasurer, Hall Family Foundation
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: None
H. David Rybolt (68)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee; since January 2004)
Principal Occupation(s) During Past 5 Years: Consultant, HDR Associates (management consulting)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: None
75
MANAGEMENT (Unaudited)
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Independent Trustees(1)
James R. Seward (58)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: Private investor (2000-present); CFA
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: Syntroleum Corporation; Brookdale Senior Living Inc.; LabOne, Inc., Concorde Colleges; American Retirement Corp.
William B. Taylor (65)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since September 2005)
Principal Occupation(s) During Past 5 Years: Consultant (2003-present); prior thereto Partner (until 2003) Ernst & Young LLP
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: J.E. Dunn Vermont Assurance
Interested Trustees(1)(2)
Erik R. Preus (45)(4)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since March 2006)
Principal Occupation(s) During Past 5 Years: President and Chief Executive Officer, RBC Funds Trust (2006-present); Head, Strategic Relationships Group, RBC Global Asset Management (U.S.) Inc. (2009-present); Head of Retail Asset Management, RBC Global Asset Management (U.S.) Inc. (2006-2009); Chief Operating Officer, RBC Global Asset Management (U.S.) Inc. (2005-2006); Director, Investment Consulting Services, RBC Dain Rauscher Inc. (2004-2005); Director, Voyageur Advisory Services, RBC Global Asset Management (U.S.) Inc. (2003-2004)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Executive Officers(1)(2)(3)
Erik R. Preus (45)
Position Term of Office and Length of Time Served with the Trust: President and Chief Executive Officer since September 2006
Principal Occupation(s) During Past 5 Years: Head, Strategic Relationships Group, RBC Global Asset Management (U.S.) Inc. (2009-present); Head of Retail Asset Management, RBC Global Asset Management (U.S.) Inc. (2006-2009); Chief Operating Officer, RBC Global Asset Management (U.S.) Inc. (2005-2006); Director, Investment Consulting Services, RBC Dain Rauscher Inc. (2004-2005); Director, Voyageur Advisory Services, RBC Global Asset Management (U.S.) Inc (2003-2004)
James A. Gallo (46)
Address: BNY Mellon Investment Servicing (US) Inc., 760 Moore Road, King of Prussia, PA 19406
Position Term of Office and Length of Time Served with the Trust: Treasurer since October 2007
Principal Occupation(s) During Past 5 Years: Senior Vice President and Managing Director, BNY Mellon Investment Servicing (US) Inc. (2002-present); Vice President and Executive Director, Morgan Stanley (1998-2002)
76
MANAGEMENT (Unaudited)
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Executive Officers(1)(2)(3)
Kathleen A. Hegna (43)
Position Term of Office and Length of Time Served with the Trust: Chief Financial Officer and Principal Accounting Officer since May 2009
Principal Occupation(s) During Past 5 Years: Associate Vice President and Director, Mutual Fund Accounting and Administration, RBC Global Asset Management (U.S.) Inc. (2009-present); Senior Compliance Officer, RBC Global Asset Management (U.S.) Inc. (2006-2009); Director, Asset Management Compliance, RiverSource Investments (2005-2006); Manager, Business Planning and Financial Analysis-Mutual Funds, Ameriprise Financial (2001-2005)
Kathleen A. Gorman (46)
Position Term of Office and Length of Time Served with the Trust: Chief Compliance Officer since April 2006 and Assistant Secretary since September 2006
Principal Occupation(s) During Past 5 Years: Chief Compliance Officer, RBC Funds Trust(2006-present); Chief Compliance Officer, RBC Global Asset Management (U.S.) Inc. (2006-2009); Director, Asset Management Compliance, RiverSource Investments (2004-2006); Senior Compliance Officer, U.S. Bancorp Asset Management (2002-2004)
Lee Greenhalgh (39)
Position Term of Office and Length of Time Served with the Trust: Chief Legal Officer and Secretary since 2008
Principal Occupation(s) During Past 5 Years: Associate General Counsel, RBC Capital Markets, LLC (2006-present); Asset Management Compliance, RiverSource Investments (2004-2006); Procurement Attorney, Ameriprise Financial (2002-2004)
John M. Huber (42)
Position Term of Office and Length of Time Served with the Trust: Chief Investment Officer, Fixed Income Products since February 2005
Principal Occupation(s) During Past 5 Years: Chief Investment Officer, Fixed Income, RBC Global Asset Management (U.S.) Inc. (2004-present); Senior Portfolio Manager and Principal, Galliard Capital Management (1995-2004)
Gordon Telfer (44)
Position Term of Office and Length of Time Served with the Trust: Chief Investment Officer, Equity Products since October 2009; Portfolio Strategist, from March 2004 to October 2009
Principal Occupation(s) During Past 5 Years: Director of Equities - U.S., RBC Global Asset Management (U.S.) Inc. (June 2009 to present); Head of Growth Equities, RBC Global Asset Management (U.S.) Inc. (2008-2009); Senior Portfolio Manager, RBC Global Asset Management (U.S.) Inc. (2004-2008); Managing Director, RBC Global Asset Management (U.S.) Inc. (2007-present); Vice President, RBC Global Asset Management (U.S.) Inc. (2004-2007)
(1) | Except as otherwise noted, the address of each Trustee/Officer is RBC Funds Trust, 100 South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402. |
(2) | 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. |
(3) | Each officer serves in such capacity for an indefinite period of time until his or her removal, resignation or retirement. |
(4) Erik R. Preus has been determined to be an interested Trustee by virtue of his affiliation with the Trust. The Funds’ 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.
77
SHARE CLASS INFORMATION (UNAUDITED)
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The RBC Equity Funds offer up to four share classes. These four share classes are the A, C, I, and S classes.
Class A
Class A shares of all Funds except Mid Cap Value 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 up-front 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 A shares have a higher up-front sales charge (load) than Class C shares, but a lower annual expense ratio.
Class C
Class C shares of all Funds except Mid Cap Value are also available for purchase primarily through investment advisors, broker-dealers, banks and other financial services intermediaries. Class C shares redeemed within 12 months of purchase are subject to a CDSC of 1.00%. (No CDSC will be charged on shares acquired through reinvestment of dividends or capital gains.) C Class shares expenses include a 1.00% (100 bps) annual 12b-1 service and distribution fee. Class C shares have a lower up-front sales charge (load) than Class A shares, but due to the higher service and distribution fee, have higher annual expenses than A Class shares.
Class S
Class S shares of all Funds except Mid Cap Value are available to investors purchasing shares directly through the Fund or its agent, U.S. Bancorp Fund Services LLC, or through certain fee-based programs of broker-dealers or registered investment advisors. This share class does not have an up-front sales charge (load) or a 12b-1 service and distribution fee.
Class I
Class I shares are available in the SMID Cap Growth, Enterprise and Mid Cap Value Funds. This share class is 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.
For an investor purchasing RBC Funds shares through a financial services intermediary, the question as to which share class, A or C, is the better choice is dependent on many factors, including the amount to be invested and the length of time an investor anticipates holding the shares. An investor should consult with his or her financial advisor about his or her personal financial situation to determine which share class is the best choice for his or her individual situation.
78
SUPPLEMENTAL INFORMATION (UNAUDITED)
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Shareholder Expense Examples
As a shareholder of the RBC Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) and (2) ongoing costs, including management fees; 12b-1 distribution and service 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 April 1, 2010 through September 30, 2010.
Actual Expenses and Performance
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 4/1/2010 | Ending Account Value 9/30/2010 | Expenses Paid During Period* 4/1/10-9/30/10 | Annualized Expense Ratio During Period 4/1/10-9/30/10 | |||||||
SMID Cap Growth Fund | Class A | $1,000.00 | $1,076.80 | $ 7.03 | 1.35% | |||||
Class I | 1,000.00 | 1,077.30 | 5.73 | 1.10% | ||||||
Class C | 1,000.00 | 1,073.40 | 10.92 | 2.10% | ||||||
Class S | 1,000.00 | 1,077.30 | 5.73 | 1.10% | ||||||
Enterprise Fund | Class A | 1,000.00 | 1,014.80 | 6.72 | 1.33% | |||||
Class I | 1,000.00 | 1,015.90 | 5.46 | 1.08% | ||||||
Class C | 1,000.00 | 1,010.50 | 10.48 | 2.08% | ||||||
Class S | 1,000.00 | 1,015.20 | 5.46 | 1.08% | ||||||
Small Cap Core Fund | Class A | 1,000.00 | 1,027.20 | 7.01 | 1.38% | |||||
Class C | 1,000.00 | 1,022.80 | 10.85 | 2.14% | ||||||
Class S | 1,000.00 | 1,028.70 | 5.75 | 1.13% | ||||||
Microcap Value Fund | Class A | 1,000.00 | 983.80 | 6.56 | 1.32% | |||||
Class C | 1,000.00 | 979.60 | 10.27 | 2.07% | ||||||
Class S | 1,000.00 | 985.20 | 5.32 | 1.07% | ||||||
Mid Cap Value Fund | Class I | 1,000.00 | 1,003.70 | 4.52 | 0.90% |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 183/365 (to reflect one-half year period).
79
SUPPLEMENTAL INFORMATION (UNAUDITED)
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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 4/1/2010 | Ending Account Value 9/30/2010 | Expenses Paid During Period* 4/1/10-9/30/10 | Annualized Expense Ratio During Period 4/1/10-9/30/10 | |||||||
SMID Cap Growth Fund | Class A | $1,000.00 | $1,018.30 | $ 6.83 | 1.35% | |||||
Class I | 1,000.00 | 1,019.55 | 5.57 | 1.10% | ||||||
Class C | 1,000.00 | 1,014.54 | 10.61 | 2.10% | ||||||
Class S | 1,000.00 | 1,019.55 | 5.57 | 1.10% | ||||||
Enterprise Fund | Class A | 1,000.00 | 1,018.40 | 6.73 | 1.33% | |||||
Class I | 1,000.00 | 1,019.65 | 5.47 | 1.08% | ||||||
Class C | 1,000.00 | 1,014.64 | 10.50 | 2.08% | ||||||
Class S | 1,000.00 | 1,019.65 | 5.47 | 1.08% | ||||||
Small Cap Core Fund | Class A | 1,000.00 | 1,018.15 | 6.98 | 1.38% | |||||
Class C | 1,000.00 | 1,014.34 | 10.81 | 2.14% | ||||||
Class S | 1,000.00 | 1,019.40 | 5.72 | 1.13% | ||||||
Microcap Value Fund | Class A | 1,000.00 | 1,018.45 | 6.68 | 1.32% | |||||
Class C | 1,000.00 | 1,014.69 | 10.45 | 2.07% | ||||||
Class S | 1,000.00 | 1,019.70 | 5.42 | 1.07% | ||||||
Mid Cap Value Fund | Class I | 1,000.00 | 1,020.56 | 4.56 | 0.90% |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 183/365 (to reflect one-half year period).
80
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED)
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Information Regarding the Approval of Investment Advisory Agreements
In September, 2010, after evaluating the services provided by RBC Global Asset Management (U.S.), Inc. (formerly named Voyageur Asset Management Inc.) (the “Advisor”) and reviewing the performance, fees and expenses of the Funds, the RBC Funds Board of Trustees determined to approve the continuation of the investment advisory agreements (“Agreements”) with the Advisor for each Fund for an additional year.
As part of their review of the Agreements, the Trustees requested and considered information regarding the advisory services performed by the Advisor, the staffing and qualifications of the personnel responsible for operating and managing the Funds, and the Funds’ performance and expenses. The review process was guided by the Board’s Valuation, Portfolio Management and Performance Committee. The Trustees considered information provided at regular quarterly Board and Committee meetings throughout the year, as well as a special meeting to review requested material related to the proposed renewals and a meeting held to specifically consider the proposed renewals. In connection with their deliberations, the independent Trustees were advised by their own independent legal counsel with regard to the materials and their responsibilities under relevant laws and regulations.
The Trustees met with representatives from the Advisor’s senior management team, as well as senior investment professionals, to discuss the information and the Advisor’s ongoing management of the Funds. The Trustees reviewed the quality of the services provided to the Funds by the Advisor, including information prepared by an independent third-party consultant as to each Fund’s performance relative to appropriate index benchmarks as well as fund peer group comparative information requested by the Board. For the Enterprise and Microcap Value Funds, the Trustees also requested and reviewed supplemental performance material that included a peer group of other microcap funds, since the standard consultant material did not include such a benchmark category. For the SMID Cap Growth Fund, as there is no standard small/mid category within the consultant’s standard benchmark materials, the Trustees also requested and reviewed information for other “small/mid” funds, and in particular, funds that had a growth style of investing. The Trustees reviewed performance data both before and after fees and expenses.
The Trustees recognized that the Advisor’s focus on higher quality companies within the small and micro-cap segments for the Enterprise and Micro Cap Value Funds accounted for the Funds’ lower risk profile and relative underperformance compared to peer funds during market rallies. The Trustees discussed those Funds’ performance during more volatile periods and concluded that the Funds’ risk-adjusted performance was consistent with their investment mandate. The performance of the Small Cap Core Fund was favorable in relative terms over the long term, and the Trustees recognized the Advisor’s management and trading expertise that contributed to that Fund’s success. The SMID Cap Growth Fund one year performance had improved to the top quintile during the period, and the Mid Cap Value Fund performance also improved.
The Trustees reviewed the investment advisory fees payable to the Advisor, and reviewed comparative fee and expense information for similarly situated funds prepared by the consultant. The Trustees also received reports from the Advisor regarding other investment companies it advised, including the advisory fees paid, as well as other advisory client accounts and their related fees. The Trustees evaluated profitability data for the Advisor, and considered information regarding other benefits the Advisor and its affiliates derived from its relationships with the Funds. The Advisor had proposed to continue for an additional year the existing contractual fee waiver and expense limitation arrangements in order to limit operating expenses.
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APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED)
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In considering the quality of the services performed for each Fund by the Advisor, the Trustees discussed the research capabilities and fundamental analysis performed by the firm and also considered the portfolio management experience of the Advisor’s staff, its trading expertise, compliance structure and systems, financial strength, and its implementation of strategic initiatives geared toward the success of the Funds. The Trustees were satisfied with the quality and capabilities of the portfolio management and analyst team and with the overall investment performance of the Funds.
Based upon their review, the Trustees determined that the advisory fees proposed to be payable to the Advisor were fair and reasonable in light of the nature and quality of services provided under all of the circumstances, and were within the range of what might have been negotiated at arms’ length. The Trustees concluded that it is in the interest of the Funds and their shareholders for the Trustees to approve the continuation of the Agreements and expense limitation arrangements for the Funds. In arriving at their decision to approve the renewal of the Agreements, the Trustees did not assign relative weights to the factors discussed above or deem any one or group of them to be controlling in and of itself.
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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 period ended September 30, 2010.
NOT FDIC INSURED l NO BANK GUARANTEE l MAY LOSE VALUE
RBC Global Asset Management, Inc. serves as investment adviser 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-EQ AR 09-10
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 holdings.
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 additional performance information 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 (“Commission”) website at http://www.sec.gov. Information regarding how your Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (i) on the Fund’s website at www.rbcgam.us; and (ii) on the Commission’s website at http://www.sec.gov.
A schedule of each Fund’s portfolio holdings will be filed with the Commission for the first and third quarters of each fiscal year on Form N-Q. This information is available on the Commission’s website at http://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room is available by calling 1-202-551-8090.
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LETTER FROM THE CIO OF FIXED INCOME
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potential new stimulus that is working its way through the system. The most likely scenario for inflation is that it will remain well under control and that deflationary risks are more prevalent in the eyes of policy makers at present. We remain in an environment of sluggish below trend growth, unfavorable pressure on pricing and widespread lack of confidence in the future. | ||||||
That said, a modest yet improving economic backdrop combined with strengthening corporate profitability and healthy balance sheets continues to support a strong technical bid for non-Treasury assets. The Fed is largely getting what it wants in this regard, forcing investors to take more risk and flee the safety of higher quality investments. Unfortunately, current fiscal and monetary policies have been largely unsuccessful at getting banks to take more risk within their loan portfolios. New financial reform legislation (Dodd- Frank) and new regulatory guidelines (Basel III) have made it difficult for private lending to materially improve as the banking system continues to deal with its own de-leveraging needs. With more clarity around how much capital banks will need to hold in the future, banks should, at least theoretically, be willing to put more excess capital to work at some point in the year ahead. | ||||||
Within the fixed income markets more generally, the Treasury yield curve remains solidly anchored in the short end and we have seen a large flattening occur during the past several quarters as longer rates have moved substantively lower. Volatility has declined as well following the flash crash as important volatility indices have successfully moved back below their 365 day moving averages. The potential for further risk flares and volatility should remain high as the market looks for economic clarity and we move toward the end of 2010. The markets quick rebound is indicative of the “Risk On/Risk Off” trading environment that typically accompanies a market which lacks fundamental confidence. | ||||||
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Finally, newly enacted revisions to 2a-7 regulations have been implemented in the past six months. Two important areas we have been working on include formally instituting “know your client” procedures and regular stress testing for our family of money market funds. The RBC Funds have always been managed to tighter weighted average maturity and quality restrictions than those historically required.
As always, we will remain steadfast in our goal of principal preservation of our shareholders assets while striving to provide the necessary liquidity and income generation they expect. Thank you for your continued confidence and trust in the RBC Funds.
Sincerely, | |||||
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John Huber Chief Investment Officer Fixed Income |
John M. Huber, CFA Chief Investment Officer, Fixed Income RBC Funds | |||||
2 |
LETTER FROM THE CIO OF FIXED INCOME
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Past performance is not a guarantee of future results. | ||||||
Opinions expressed are subject to change, are not guaranteed, and should not be considered a recommendation to buy or sell any security. | ||||||
An investment in a Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although Money Market Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in them. These risks are more fully described in the prospectus. | ||||||
3
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MONEY MARKET PORTFOLIO MANAGERS
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Brandon T. Swensen, CFA Vice President, Portfolio Manager Brandon Swensen is a portfolio manager on the Spread Management Team and leads the firm’s trading activity in short duration investment services. Brandon also has specific research responsibilities for finance companies, automobile, auto asset backed securities and asset backed commercial paper. He joined RBC GAM (US) in 2000 and has held several key roles including senior structured product analyst and credit analyst in the fixed income group. Brandon began his career in the investment industry in 1998. He received a BS in Finance from St. Cloud State University and an MBA in Finance from the University of St. Thomas. Brandon is a CFA charterholder and member of the CFA Society of Minnesota. |
Brandon T. Swensen | |||||
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RBC Money Market Funds
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RBC Money Market Funds | The RBC Money Market Funds seek to achieve the highest level of current income as is consistent with prudent investment management emphasizing the safety of principal and the maintenance of suitable liquidity. The Funds invest in a variety of highly rated money market instruments. In the Tax-Free Money Market Fund, investments are made in highly rated debt obligations that pay interest exempt from federal income taxes and the alternative minimum tax. | |||||
The RBC Money Market Funds are not benchmarked to industry indices, although their performance is evaluated against each Fund’s respective peer group as reported by several service providers.
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Taxable Money Market Funds |
The Securities and Exchange Commission, providing oversight of the money market funds industry under its Rule 2a-7, issued revised guidelines to that Rule in May, 2010 which were intended to provide funds with enhanced resilience against material events such as those experienced by money funds in late 2008. The emphasis of these sweeping changes directs money funds to (a) reduce price risk through the management of portfolios with shorter weighted average maturities (WAM), (b) increase liquidity by providing a greater allocation of portfolio assets that are immediately available to meet withdrawal demands and also acknowledge the contributions that large institutional investors represent in money funds, (c) increase the credit quality of underlying securities in the portfolio, and (d) the requirement that managers conduct stress testing on portfolios to determine the ability of a fund to maintain a $1.00 NAV by withstanding changes in market rates, significant withdrawal demands, and deterioration in the credit quality of holdings.
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It is expected that further revisions will be added to Rule 2a-7 at some time during the next reporting period.
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In this period, short-term interest rates remained at extremely low levels in response to ongoing aggressive monetary policies taken by the Federal Reserve, where the benchmark Federal Funds rate has remained within a target range of between 0.00% and 0.25%. During this period, there has been volatility in the short-term credit markets in response to a changing regulatory environment, lackluster economic data and global risk flares associated with sovereign credit concerns. While the issuance of financial and bank debt has remained fairly active, the amount of short-term debt issuance by non-financial issuers has continued to decline from recent two-year levels. This in part reflects the significant cash balances held by corporations as well as decisions by those borrowers to issue debt for terms of longer than one year in the context of a very low interest rate climate.
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During the past year, the institutional share classes of both the Prime and U.S. Government funds experienced growth in their balances although as of this reporting date a good share of the asset growth has been reversed. We believe that the volatility in the asset size of institutional share classes is driven by relative yield. | ||||||
6 |
PERFORMANCE SUMMARY
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RBC Money Market Funds
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With consideration of the larger denominations of institutional fund participants, and acknowledging the current market environment, the team responsible for the Money Market Funds continued to closely monitor the markets and adjust issuer approved lists and investment practices while maintaining a strategy whereby: | ||||||
— A high percentage of assets were invested in securities that matured within 7 and 30 days. | ||||||
— Only a select set of the highest quality issuers were approved for investment in a highly diversified manner.
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During the past year, the institutional share classes of the Tax-Free Money Market Fund have contributed to modest growth in the balances of the Fund. The Fund held a majority of assets that provided either daily or weekly demand features (in other words, securities with maturities of seven days or less) with a more modest percentage of assets in highly rated notes with maturities of 180-397 days. As a result, the average maturities of the Fund fluctuated between 30-45 days, which was fairly consistent with the average of funds in its peer group. | Tax-Free Money Market Fund | |||||
7 |
PERFORMANCE SUMMARY
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Investment Objective | Each of the RBC Money Market Funds was managed to preserve principal. This means that the share price of each fund held steady at $1.00. A consistent share price of $1.00 is expected for a money market mutual fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. These risks are more fully described in the prospectus. | |||||||||||||||||||
Total Return for the Year Ended September 30, 2010 | ||||||||||||||||||||
SEC 7-Day Annualized Yield (1) | ||||||||||||||||||||
September 30, 2010 | September 30, 2009 | |||||||||||||||||||
Prime Money Market Fund* | ||||||||||||||||||||
RBC Institutional Class 1 | 0.19% | 0.23% | 0.34% | |||||||||||||||||
RBC Institutional Class 2 | 0.09% | 0.13% | 0.24% | |||||||||||||||||
RBC Investor Class | 0.01% | 0.01% | 0.01% | |||||||||||||||||
RBC Reserve Class | 0.01% | 0.01% | 0.01% | |||||||||||||||||
RBC Select Class | 0.01% | 0.01% | 0.01% | |||||||||||||||||
U.S. Government Money Market Fund* | ||||||||||||||||||||
RBC Institutional Class 1 | 0.11% | 0.14% | 0.12% | |||||||||||||||||
RBC Institutional Class 2 | 0.02% | 0.04% | 0.02% | |||||||||||||||||
RBC Investor Class | 0.01% | 0.01% | 0.01% | |||||||||||||||||
RBC Reserve Class | 0.01% | 0.01% | 0.01% | |||||||||||||||||
RBC Select Class | 0.01% | 0.01% | 0.01% | |||||||||||||||||
Tax-Free Money Market Fund* | ||||||||||||||||||||
RBC Institutional Class 1 | 0.25% | 0.24% | 0.52% | |||||||||||||||||
RBC Institutional Class 2 | 0.15% | 0.14% | 0.41% | |||||||||||||||||
RBC Investor Class | 0.02% | 0.01% | 0.01% | |||||||||||||||||
RBC Reserve Class | 0.02% | 0.01% | 0.01% | |||||||||||||||||
RBC Select Class | 0.02% | 0.01% | 0.02% | |||||||||||||||||
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 most recent month-end go to www.rbcgam.us. |
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8 |
PERFORMANCE SUMMARY
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*The inception date for the RBC Institutional Class 2, RBC Select Class, RBC Reserve Class and RBC Investor Class is November 21, 2008. All performance shown for these classes of shares prior to their inception date is based on the performance, fees and expenses of RBC Institutional Class 1 shares of the Fund and its predecessors, and has not been adjusted to reflect the fees and expenses of RBC Institutional Class 2, RBC Select Class, RBC Reserve Class, and RBC Investor Class shares.
(1) As money market returns respond rapidly to market changes, such as in the Fed Funds rate, the 7-Day yield is a more accurate reflection of current earnings than the total return for the year. Prior year 7-Day yield information is provided for comparative purposes.
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Asset Allocation | ||||||||||||||||||||
Money Market Maturity Schedules as a percentage of value of investments based on effective maturity as of September 30, 2010. | ||||||||||||||||||||
Prime Money Market Fund | U.S. Government Money Market Fund | Tax-Free Money Market Fund | ||||||||||||||||||
Less than 8 days | 53.8% | 46.7% | 82.0% | |||||||||||||||||
8 to 14 Days | 5.2% | 8.1% | 0.0% | |||||||||||||||||
15 to 30 Days | 11.8% | 8.2% | 1.0% | |||||||||||||||||
31 to 180 Days | 19.2% | 26.2% | 10.4% | |||||||||||||||||
181 to 365 Days | 10.0% | 10.8% | 6.6% | |||||||||||||||||
9
SCHEDULE OF PORTFOLIO INVESTMENTS
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Prime Money Market Fund
September 30, 2010
Principal Amount | Value | |||||
Asset Backed Securities — 1.50% | ||||||
Asset Backed Auto Receivables — 1.50% | ||||||
$ 675,823 | Bank of America Auto Trust, Series 2010-1A, Class A1, 0.26%, 2/15/11(a) | $ | 675,823 | |||
20,241,991 | Bank of America Auto Trust, Series 2010-2, Class A1, 0.62%, 7/15/11 | 20,241,991 | ||||
81,000,000 | Chrysler Financial Auto Securitization Trust, Series 2010-A, Class A1, 0.57%, 10/11/11(a) | 81,000,000 | ||||
20,674,770 | Honda Auto Receivables Owner Trust, Series 2010-1, Class A1, 0.27%, 2/22/11 | 20,674,770 | ||||
30,000,000 | Hyundai Auto Receivables Trust Series 2010-B Class A1, 0.37%, 9/15/11 | 30,000,000 | ||||
11,564,100 | Mercedes-Benz Auto Receivables Trust , Series 2010-1 , Class A1, 0.31%, 5/15/11 | 11,564,100 | ||||
13,136,786 | Nissan Auto Lease Trust, Series 2010-A, Class A1, 0.56%, 6/15/11 | 13,136,786 | ||||
9,798,051 | Volkswagen Auto Loan Enhanced Trust, Series 2010-1, Class A1, 0.26%, 2/21/11 | 9,798,051 | ||||
44,677,322 | Volvo Financial Equipment LLC, Series 2010-1A, Class A1, 0.51%, 5/16/11(a) | 44,677,322 | ||||
3,365,853 | World Omni Auto Receivables Trust Series 2010-A, Class A1, 0.23%, 2/15/11 | 3,365,853 | ||||
Total Asset Backed Securities | 235,134,696 | |||||
(Cost $235,134,696) | ||||||
Asset Backed Commercial Paper — 0.93% | ||||||
Finance - Diversified Domestic — 0.93% | ||||||
145,000,000 | Straight-A Funding LLC, 0.31%, 10/27/10(a)(b) | 144,967,536 | ||||
Total Asset Backed Commercial Paper | 144,967,536 | |||||
(Cost $144,967,536) | ||||||
Commercial Paper — 23.10% | ||||||
Banks - Australia & New Zealand — 3.08% | ||||||
50,000,000 | Australia & New Zealand Banking Group Ltd., 0.28%, 1/28/11(a) | 50,000,000 | ||||
50,000,000 | Australia & New Zealand Banking Group Ltd., 0.29%, 12/16/10(a) | 49,999,045 | ||||
50,000,000 | Australia & New Zealand Banking Group Ltd., 0.62%, 10/19/10(a)(b) | 49,984,500 | ||||
81,013,000 | Commonwealth Bank Australia, 0.25%, 10/6/10(a)(b) | 81,010,187 | ||||
100,000,000 | Commonwealth Bank Australia, 0.33%, 9/16/11(a)(b) | 100,000,000 | ||||
50,000,000 | Commonwealth Bank Australia, 0.38%, 10/5/10(a)(b) | 49,997,889 | ||||
100,000,000 | Westpac Banking Corp, 0.00%, 9/26/11(a)(b) | 100,000,000 | ||||
480,991,621 | ||||||
Banks - Domestic — 4.74% | ||||||
10,672,000 | Bank of America NA, 0.36%, 3/14/11(b) | 10,654,498 |
10
SCHEDULE OF PORTFOLIO INVESTMENTS
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Prime Money Market Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$ 30,000,000 | Bank of America NA, 0.36%, 3/18/11(b) | $ | 29,949,600 | |||
300,000,000 | BB&T Corp., 0.15%, 10/1/10(b) | 300,000,000 | ||||
300,000,000 | Citibank NA, 0.19%, 10/1/10 | 300,000,000 | ||||
100,000,000 | Deutsche Bank NY, 0.15%, 10/1/10 | 100,000,000 | ||||
740,604,098 | ||||||
Banks - Foreign — 2.79% | ||||||
225,000,000 | BNP Paribas, 0.15%, 10/1/10 | 225,000,000 | ||||
60,000,000 | Nordea North America, Inc., 0.25%, 10/7/10(b) | 59,997,500 | ||||
150,000,000 | Santander Central Hispano Financial, 0.65%, 10/4/10(b) | 149,991,875 | ||||
434,989,375 | ||||||
Consumer Discretionary — 1.51% | ||||||
93,000,000 | Johnson & Johnson, 0.31%, 5/11/11(a)(b) | 92,822,215 | ||||
135,000,000 | Procter & Gamble International Funding SCA, 0.25%, 10/25/10(a)(b) | 134,977,500 | ||||
8,180,000 | Procter & Gamble International Funding SCA, 0.28%, 1/12/11(a)(b) | 8,173,447 | ||||
235,973,162 | ||||||
Consumer Staples — 2.63% | ||||||
15,000,000 | Coca-Cola Co., 0.62%, 4/4/11(a)(b) | 14,952,208 | ||||
100,000,000 | Nestle Capital Corp., 0.35%, 10/19/10(a)(b) | 99,982,500 | ||||
100,000,000 | Nestle Finance International Ltd., 0.35%, 10/12/10(b) | 99,989,306 | ||||
195,381,000 | Wal-Mart Stores, Inc., 0.21%, 10/18/10(a)(b) | 195,361,625 | ||||
410,285,639 | ||||||
Finance - Diversified Domestic — 0.32% | ||||||
50,000,000 | KFW, 0.48%, 1/14/11(a)(b) | 49,930,000 | ||||
Health Care — 0.32% | ||||||
30,000,000 | Dean Health Systems, Inc., 0.25%, 10/21/10(b) | 29,995,833 | ||||
20,000,000 | Medtronic, Inc., 0.23%, 11/12/10(a)(b) | 19,994,633 | ||||
49,990,466 | ||||||
Information Technology — 0.64% | ||||||
100,000,000 | Google, Inc., 0.40%, 9/12/11(a)(b) | 99,615,555 | ||||
Insurance — 4.68% | ||||||
25,000,000 | AXA Financial, Inc., 0.27%, 10/5/10(a)(b) | 24,999,250 | ||||
50,000,000 | AXA Financial, Inc., 0.27%, 10/13/10(a)(b) | 49,995,500 | ||||
25,000,000 | AXA Financial, Inc., 0.27%, 10/14/10(a)(b) | 24,997,563 | ||||
50,000,000 | AXA Financial, Inc., 0.27%, 10/19/10(a)(b) | 49,993,250 | ||||
25,000,000 | AXA Financial, Inc., 0.27%, 10/21/10(a)(b) | 24,996,250 | ||||
25,000,000 | AXA Financial, Inc., 0.28%, 10/1/10(a)(b) | 25,000,000 | ||||
25,000,000 | AXA Financial, Inc., 0.28%, 10/4/10(a)(b) | 24,999,417 | ||||
50,000,000 | AXA Financial, Inc., 0.28%, 10/15/10(a)(b) | 49,994,555 | ||||
25,000,000 | Mass Mutual Life, 0.23%, 10/6/10(a)(b) | 24,999,201 | ||||
25,000,000 | Mass Mutual Life, 0.23%, 10/12/10(a)(b) | 24,998,243 | ||||
10,000,000 | Mass Mutual Life, 0.23%, 10/18/10(a)(b) | 9,998,914 | ||||
11
SCHEDULE OF PORTFOLIO INVESTMENTS
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Prime Money Market Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$ 25,000,000 | Mass Mutual Life, 0.23%, 10/21/10(a)(b) | $ | 24,996,806 | �� | ||
50,000,000 | Metlife Short Term Funding LLC, 0.33%, 1/10/11(a)(b) | 49,953,708 | ||||
25,000,000 | Metlife Short Term Funding LLC, 0.46%, 3/7/11(a)(b) | 24,949,847 | ||||
25,000,000 | Metlife Short Term Funding LLC, 0.58%, 2/18/11(a)(b) | 24,943,611 | ||||
60,000,000 | New York Life Capital Corp., 0.24%, 11/10/10(a)(b) | 59,984,000 | ||||
10,000,000 | New York Life Capital Corp., 0.24%, 11/15/10(a)(b) | 9,997,000 | ||||
52,000,000 | New York Life Capital Corp., 0.25%, 10/15/10(a)(b) | 51,994,944 | ||||
35,000,000 | New York Life Capital Corp., 0.25%, 10/18/10(a)(b) | 34,995,868 | ||||
14,032,000 | New York Life Capital Corp., 0.25%, 10/19/10(a)(b) | 14,030,246 | ||||
100,000,000 | Swiss Re Treasury US Corp., 0.65%, 10/5/10(a)(b) | 99,992,778 | ||||
730,810,951 | ||||||
Oil & Gas — 0.47% | ||||||
49,500,000 | Shell International Finance BV, 0.64%, 5/11/11(a)(b) | 49,304,640 | ||||
20,000,000 | Shell International Finance BV, 0.68%, 6/14/11(a)(b) | 19,903,289 | ||||
5,000,000 | Shell International Finance BV, 0.69%, 6/2/11(a)(b) | 4,976,617 | ||||
74,184,546 | ||||||
Utilities — 1.92% | ||||||
20,000,000 | Electricite de France, 0.23%, 10/1/10(a)(b) | 20,000,000 | ||||
75,000,000 | Electricite de France, 0.23%, 10/7/10(a)(b) | 74,997,125 | ||||
53,000,000 | Electricite de France, 0.24%, 10/1/10(a)(b) | 53,000,000 | ||||
130,000,000 | Electricite de France, 0.28%, 10/5/10(a)(b) | 129,995,956 | ||||
22,000,000 | Electricite de France, 0.31%, 10/27/10(a)(b) | 21,995,074 | ||||
299,988,155 | ||||||
Total Commercial Paper | 3,607,363,568 | |||||
(Cost $3,607,363,568) | ||||||
Certificates of Deposit, Yankee — 10.99%(f) | ||||||
Banks - Canadian — 4.81% | ||||||
100,000,000 | Bank of Montreal Chicago, 0.21%, 10/7/10 | 100,000,000 | ||||
100,000,000 | Bank of Montreal Chicago, 0.23%, 10/1/10 | 100,000,000 | ||||
100,000,000 | Bank of Montreal Chicago, 0.24%, 10/5/10 | 100,000,000 | ||||
100,000,000 | Bank of Nova Scotia, 0.25%, 12/13/10 | 99,998,987 | ||||
100,000,000 | Bank of Nova Scotia, 0.39%, 10/15/10 | 100,006,183 | ||||
50,000,000 | Bank of Nova Scotia, 0.52%, 11/10/10 | 50,000,000 | ||||
75,000,000 | Toronto Dominion Bank NY, 0.21%, 10/4/10 | 75,000,000 | ||||
50,000,000 | Toronto Dominion Bank NY, 0.41%, 9/19/11 | 50,000,000 | ||||
75,000,000 | Toronto Dominion Bank NY, 0.59%, 12/13/10 | 75,000,000 | ||||
750,005,170 | ||||||
Banks - Foreign — 4.26% | ||||||
100,000,000 | Banco Santander NY, 0.85%, 11/1/10 | 100,000,000 | ||||
75,000,000 | BNP Paribas NY Branch, 0.41%, 3/16/11 | 75,003,450 | ||||
50,000,000 | Nordea Bank Finland NY, 0.38%, 10/1/10 | 50,000,000 |
12
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Prime Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
$100,000,000 | Nordea Bank Finland NY, 0.39%, 10/15/10 | $ | 100,005,826 | |||
90,000,000 | Nordea Bank Finland NY, 0.82%, 10/20/11 | 90,277,182 | ||||
50,000,000 | Rabobank Nederland NY, 0.38%, 10/12/10 | 50,000,000 | ||||
50,000,000 | Rabobank Nederland NY, 0.50%, 9/14/11 | 50,012,017 | ||||
50,000,000 | Rabobank Nederland NY, 0.52%, 10/12/10 | 50,000,000 | ||||
100,000,000 | Societe Generale NY, 0.27%, 11/1/10 | 100,000,430 | ||||
665,298,905 | ||||||
Banks - United Kingdom — 1.92% | ||||||
100,000,000 | Abbey National Treasury, 0.39%, 12/9/10 | 100,000,000 | ||||
100,000,000 | Abbey National Treasury, 0.57%, 11/9/10 | 100,000,000 | ||||
15,000,000 | Abbey National Treasury, 0.59%, 10/15/10 | 15,000,000 | ||||
10,000,000 | Abbey National Treasury, 0.73%, 3/14/11 | 10,001,806 | ||||
75,000,000 | Abbey National Treasury, 0.76%, 3/31/11 | 75,026,232 | ||||
300,028,038 | ||||||
Total Certificates of Deposit, Yankee | 1,715,332,113 | |||||
(Cost $1,715,332,113) | ||||||
FDIC-TLGP Backed Corporate Bonds — 0.78% | ||||||
Banks - Domestic — 0.78% | ||||||
120,731,000 | Regions Bank, 2.75%, 12/10/10 | 121,261,588 | ||||
Total FDIC-TLGP Backed Corporate Bonds | 121,261,588 | |||||
(Cost $121,261,588) | ||||||
Corporate Bonds — 13.09% | ||||||
Banks - Australia & New Zealand — 0.03% | ||||||
5,000,000 | Australia & New Zealand Banking Group Ltd., 0.82%, 10/21/11(a)(c) | 5,013,774 | ||||
Banks - Domestic — 2.71% | ||||||
33,625,000 | Bank of America NA, 1.70%, 12/23/10 | 33,720,113 | ||||
50,000,000 | Bank of Nova Scotia, 0.26%, 10/1/10(c) | 50,000,000 | ||||
47,175,000 | Credit Suisse USA, Inc., 0.58%, 8/16/11(c) | 47,234,206 | ||||
100,000,000 | Toronto Dominion Bank NY, 0.26%, 3/10/11(c) | 100,000,000 | ||||
50,000,000 | Wells Fargo & Co., 0.39%, 3/22/11(c) | 50,015,254 | ||||
20,000,000 | Wells Fargo & Co., 3.98%, 10/29/10 | 20,054,261 | ||||
63,730,000 | Wells Fargo & Co., 5.30%, 8/26/11 | 66,500,484 | ||||
52,437,000 | Wells Fargo & Co., 5.30%, 10/15/11 | 55,021,190 | ||||
422,545,508 | ||||||
Banks - Foreign — 2.47% | ||||||
109,000,000 | Dexia Credit Local, 2.38%, 9/23/11(a) | 110,602,201 | ||||
50,000,000 | Rabobank Nederland NV, 0.25%, 12/21/10(c) | 50,000,000 | ||||
50,000,000 | Rabobank Nederland NV, 0.26%, 3/11/11(c) | 50,000,000 |
13
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Prime Money Market Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$ 50,000,000 | Rabobank Nederland NV, 0.27%, 12/17/10(c) | $ | 50,000,000 | |||
50,000,000 | Westpac Banking Corp., 0.29%, 10/7/10(c) | 50,000,000 | ||||
50,000,000 | Westpac Banking Corp., 0.30%, 3/4/11(a)(c) | 50,000,000 | ||||
25,000,000 | Westpac Banking Corp., 0.51%, 12/7/10(a)(c) | 25,009,093 | ||||
385,611,294 | ||||||
Consumer Staples — 0.66% | ||||||
100,000,000 | Wal-Mart Stores, Inc. STEP, 5.32%, 6/1/11(c) | 103,169,652 | ||||
Finance - Diversified Domestic — 2.96% | ||||||
80,507,000 | Bank of America, 4.00%, 3/22/11 | 81,798,332 | ||||
28,600,000 | Bear Stearns Cos. LLC (The), 5.50%, 8/15/11 | 29,831,762 | ||||
12,280,000 | ETC Holdings LLC, 0.27%, 4/1/28(c) | 12,280,000 | ||||
3,790,000 | GBG LLC, 0.25%, 9/1/27(a)(c) | 3,790,000 | ||||
9,727,000 | General Electric Capital Corp., 0.45%, 8/15/11(c) | 9,730,074 | ||||
10,300,000 | General Electric Capital Corp., 0.62%, 10/21/10(c) | 10,299,790 | ||||
8,662,000 | General Electric Capital Corp., 0.92%, 2/1/11(c) | 8,674,484 | ||||
10,000,000 | General Electric Capital Corp., 5.00%, 12/1/10 | 10,068,469 | ||||
59,947,000 | General Electric Capital Corp., 5.20%, 2/1/11 | 60,855,853 | ||||
25,000,000 | General Electric Capital Corp., 6.13%, 2/22/11 | 25,496,045 | ||||
11,948,000 | General Electric Capital Corp., Series A, 4.25%, 12/1/10 | 12,021,361 | ||||
11,000,000 | JPMorgan Chase & Co., 0.69%, 1/17/11(c) | 11,004,912 | ||||
21,163,000 | JPMorgan Chase & Co., 5.60%, 6/1/11 | 21,881,627 | ||||
15,650,000 | MassMutual Global Funding II, 0.40%, 8/26/11(a)(c) | 15,659,476 | ||||
55,750,000 | NGSP, Inc., 0.29%, 6/1/46(c) | 55,750,000 | ||||
11,040,000 | Ring-Missouri LP, 0.35%, 9/1/18(c) | 11,040,000 | ||||
11,345,000 | Schlitz Park Associates II LP, 0.27%, 12/1/21(c) | 11,345,000 | ||||
15,425,000 | SF Tarns LLC, 0.35%, 1/1/28(c) | 15,425,000 | ||||
55,000,000 | Twins Ballpark LLC, 0.50%, 10/1/34(a)(c) | 55,000,000 | ||||
461,952,185 | ||||||
Health Care — 0.86% | ||||||
11,790,000 | The Portland Clinic LLP, 0.32%, 11/20/33(c) | 11,790,000 | ||||
23,770,000 | Roche Holdings, Inc., 2.32%, 2/25/11(a)(c) | 23,961,739 | ||||
95,979,000 | Wyeth, 6.95%, 3/15/11 | 98,746,402 | ||||
134,498,141 | ||||||
Industrials — 0.71% | ||||||
110,000,000 | 3M Co., 5.61%, 12/12/10(a) | 111,130,317 | ||||
Insurance — 2.37% | ||||||
40,000,000 | AARP, 0.35%, 5/1/31(c) | 40,000,000 | ||||
39,700,000 | Berkshire Hathaway, Inc., 0.39%, 2/10/11(c) | 39,700,823 | ||||
200,000,000 | Metropolitan Life Global Funding, Series I, 2.28%, 4/14/11(a)(c) | 200,000,000 | ||||
90,000,000 | New York Life Global Funding, 0.26%, 4/1/11(a)(c) | 90,000,000 | ||||
369,700,823 | ||||||
14
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Prime Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
Oil & Gas — 0.32% | ||||||
$50,000,000 | Shell International Finance NV, 1.30%, 9/22/11 | $ | 50,435,111 | |||
Total Corporate Bonds | 2,044,056,805 | |||||
(Cost $2,044,056,805) | ||||||
Municipal Bonds — 19.10% | ||||||
Arizona — 0.06% | ||||||
9,800,000 | Yuma Industrial Development Authority Refunding Revenue, 0.28%, 8/1/43, (LOC: JP Morgan Chase Bank)(c) | 9,800,000 | ||||
California — 4.45% | ||||||
55,450,000 | Abag Finance Authority For Nonprofit Corps. Revenue, 0.28%, 12/15/37, (Credit Support: Fannie Mae)(c) | 55,450,000 | ||||
99,365,000 | Abag Finance Authority For Nonprofit Corps. Revenue, 0.32%, 6/1/37(c) | 99,365,000 | ||||
67,220,000 | California Housing Finance Agency Revenue, Series B, 0.30%, 2/1/35, (LOC: Freddie Mac, Fannie Mae)(c) | 67,220,000 | ||||
39,500,000 | California Housing Finance Agency Revenue, Series F, 0.30%, 2/1/37, (LOC: Freddie Mac, Fannie Mae)(c) | 39,500,000 | ||||
58,125,000 | California Housing Finance Agency Revenue, Series F, 0.30%, 2/1/38, (LOC: Freddie Mac, Fannie Mae)(c) | 58,125,000 | ||||
5,000,000 | California Statewide Communities Development Authority Revenue, Series 2114, 0.32%, 9/1/46, Callable 3/1/12 @ 100(c) | 5,000,000 | ||||
15,600,000 | City of Riverside Pension Obligation Refunding Revenue, Series A, 1.25%, 6/1/11 | 15,600,000 | ||||
43,600,000 | City of Whittier Refunding Revenue, Series A, 0.23%, 6/1/36, (LOC: U.S. Bank NA)(c) | 43,600,000 | ||||
26,002,000 | County of San Bernardino Refunding Program COP, Series B, 0.27%, 3/1/17, (LOC: Bank of America NA)(c) | 26,002,000 | ||||
50,000,000 | Los Angeles County Revenue, 0.29%, 6/30/11(a) | 50,000,000 | ||||
43,080,000 | Los Angeles Department of Water & Power Revenue, 0.27%, 7/1/36, (Credit Support: BHAC), Callable 7/1/12 @ 100(a)(c) | 43,080,000 | ||||
61,525,000 | The Olympic Club Refunding Revenue, 0.27%, 9/30/32, (LOC: Bank of America NA)(c) | 61,525,000 | ||||
42,300,000 | Sacramento Municipal Utility District Refunding Revenue, Series J, 0.25%, 8/15/28, (LOC: Bank of America NA)(c) | 42,300,000 | ||||
8,200,000 | San Francisco City & County Housing Authority Refunding Revenue, 0.27%, 9/1/49, (LOC: Citibank NA)(c) | 8,200,000 | ||||
79,200,000 | Southern California Public Power Authority Refunding Revenue, 0.26%, 7/1/36, (LOC: Bank of America NA)(c) | 79,200,000 | ||||
694,167,000 | ||||||
Colorado — 0.42% | ||||||
27,825,000 | Colorado Educational & Cultural Facilities Authority Refunding Revenue, Floaters Series 1557, 0.27%, 3/1/35(c) | 27,825,000 |
15
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Prime Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
$16,610,000 | Crystal Valley Metropolitan District No. 1 Revenue, 0.27%, 10/1/34, (LOC: Wells Fargo Bank)(c) | $ | 16,610,000 | |||
20,840,000 | East Cherry Creek Valley Water & Sanitation District Arapahoe County Refunding Revenue, Series A, 0.27%, 11/15/34, (LOC: Wells Fargo Bank)(c) | 20,840,000 | ||||
65,275,000 | ||||||
Florida — 0.28% | ||||||
44,005,000 | Orange County School Board Refunding COP, Series C, 0.26%, 8/1/25, (LOC: Bank of America NA)(c) | 44,005,000 | ||||
Georgia — 0.26% | ||||||
37,885,000 | Valdosta-Lowndes County Industrial Development Authority Revenue, Series B, 0.28%, 6/1/28, (LOC: Wells Fargo Bank)(c) | 37,885,000 | ||||
1,800,000 | Walton County Industrial Building Authority Revenue, 0.52%, 10/1/17, (LOC: Wells Fargo Bank)(c) | 1,800,000 | ||||
39,685,000 | ||||||
Illinois — 0.48% | ||||||
58,125,000 | Chicago Midway Airport Revenue, Series A, 0.33%, 1/1/29, (LOC: JPMorgan Chase Bank)(c) | 58,125,000 | ||||
15,675,000 | Illinois Finance Authority, Beloit Memorial Hospital, Inc. Revenue, Series A, 0.34%, 4/1/36, (LOC: JP Morgan Chase Bank)(c) | 15,675,000 | ||||
1,000,000 | Upper Illinois River Valley Development Authority Revenue, 1.25%, 1/1/11, (LOC: JP Morgan Chase Bank)(c) | 1,000,000 | ||||
74,800,000 | ||||||
Indiana — 0.27% | ||||||
42,500,000 | Indiana Finance Authority Refunding Revenue, Series D, 0.25%, 11/1/39, (LOC: Citibank NA)(c) | 42,500,000 | ||||
Kentucky — 0.01% | ||||||
1,325,000 | Lexington-Fayette Urban County Airport Board Refunding Revenue, Series C, 0.61%, 7/1/33, (LOC: JP Morgan Chase Bank)(c) | 1,325,000 | ||||
Maryland — 0.42% | ||||||
55,546,000 | Maryland Health & Higher Educational Facilities Authority Refunding Revenue, Series D, 0.29%, 1/1/29, (LOC: Bank of America NA)(c) | 55,546,000 | ||||
10,475,000 | Montgomery County Housing Opportunites Commission Refunding Revenue, Series D, 0.30%, 7/1/39, (LOC: Fannie Mae, Freddie Mac)(c) | 10,475,000 | ||||
66,021,000 | ||||||
Massachusetts — 0.83% | ||||||
16,810,000 | Massachusetts Educational Financing Authority Refunding Revenue, Series R-11649, 0.33%, 7/1/22, (Credit Support: Assured GTY), Callable 1/1/18 @ 100(a)(c) | 16,810,000 |
16
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Prime Money Market Fund (cont.)
September 30, 2010
| ||||||
Principal Amount | Value | |||||
$38,900,000 | Massachusetts Health & Educational Facilities Authority Capital Asset Program Revenue, Series M-2, 0.26%, 7/1/31, (LOC: Bank of America NA)(c) | $ | 38,900,000 | |||
18,535,000 | Massachusetts Health & Educational Facilities Authority Capital Asset Program Revenue, Series M-4A, 0.26%, 7/1/39, (LOC: Bank of America NA)(c) | 18,535,000 | ||||
55,900,000 | Massachusetts Health & Educational Facilities Authority Revenue, Boston University, Series N, 0.25%, 10/1/34, (LOC: Bank of America NA)(c) | 55,900,000 | ||||
130,145,000 | ||||||
Michigan — 0.44% | ||||||
69,300,000 | Michigan Strategic Fund Van Andel Research Refunding Revenue, 0.27%, 4/1/43, (LOC: Bank of America NA)(c) | 69,300,000 | ||||
Minnesota — 0.78% | ||||||
69,500,000 | City of Rochester Mayo Foundation Refunding Revenue, Series A, 0.24%, 8/15/32(c) | 69,500,000 | ||||
51,500,000 | City of Rochester Mayo Foundation Refunding Revenue, Series B, 0.23%, 8/15/32(c) | 51,500,000 | ||||
121,000,000 | ||||||
Mississippi — 0.10% | ||||||
15,935,000 | Mississippi Development Bank Special Obligation Refunding Revenue, Series B, 0.35%, 10/1/31, (LOC: Bank of America NA)(c) | 15,935,000 | ||||
Nebraska — 0.06% | ||||||
10,000,000 | Nebraska Investment Finance Authority Multi Family Housing Revenue, Series A, 0.31%, 10/1/42, (LOC: Citibank NA)(c) | 10,000,000 | ||||
New Jersey — 0.16% | ||||||
6,675,000 | New Jersey Economic Development Authority Revenue, Series A, 0.35%, 9/1/21, (LOC: Wells Fargo Bank)(c) | 6,675,000 | ||||
18,200,000 | New Jersey Health Care Facilities Finance Authority Revenue, Series B, 0.35%, 7/1/37, (Credit Support: Assured GTY)(c) | 18,200,000 | ||||
24,875,000 | ||||||
New York — 3.40% | ||||||
27,300,000 | City of New York Public Improvement GO, Series F-6, 0.30%, 2/15/18, (LOC: Morgan Guaranty Trust)(c) | 27,300,000 | ||||
29,000,000 | City of New York Public Improvement GO, Sub-Series H-2, 0.24%, 3/1/34, (LOC: Bank of New York)(c) | 29,000,000 | ||||
45,085,000 | City of New York Refunding GO, Sub-Series C-5, 0.24%, 8/1/20, (LOC: Bank of New York)(c) | 45,085,000 | ||||
7,945,000 | Nassau County Industrial Development Agency Nursing Home Improvement Revenue, Series D, 0.35%, 1/1/28, (LOC: Bank of America NA)(c) | 7,945,000 | ||||
25,875,000 | New York City Capital Resources Corp. Nursing Home Revenue, Series B, 0.25%, 1/1/37, (LOC: Bank of America NA)(c) | 25,875,000 |
17
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Prime Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
$23,820,000 | New York City Capital Resources Corp. Nursing Home Revenue, Series B-1, 0.25%, 7/1/37, (LOC: Bank of America NA)(c) | $ | 23,820,000 | |||
44,700,000 | New York City Housing Development Corp. Multi Family Housing Revenue, Royal Properties Series A, 0.25%, 4/15/35, (Credit Support: Fannie Mae)(c) | 44,700,000 | ||||
22,400,000 | New York City Housing Development Corp. Multi Family Housing Revenue, Series A, 0.25%, 11/1/48, (LOC: Bank of America NA)(c) | 22,400,000 | ||||
41,850,000 | New York City Housing Development Corp. Multi Family Housing Revenue, Series B, 0.25%, 4/15/36, (Credit Support: Fannie Mae)(c) | 41,850,000 | ||||
56,990,000 | New York State Dormitory Authority Revenue, Series A, 0.25%, 11/15/36, (Credit Support: Fannie Mae)(c) | 56,990,000 | ||||
13,000,000 | New York State Energy Research & Development Authority Refunding Revenue, Series A, 0.30%, 8/1/15, (LOC: Wells Fargo Bank)(c) | 13,000,000 | ||||
23,390,000 | New York State Housing Finance Agency 320 West 38th St. Refunding Revenue, Series A, 0.27%, 5/1/42, (LOC: Wells Fargo Bank)(c) | 23,390,000 | ||||
40,500,000 | New York State Housing Finance Agency 320 West 38th St. Refunding Revenue, Series B, 0.27%, 5/1/42, (LOC: Wells Fargo Bank)(c) | 40,500,000 | ||||
15,100,000 | New York State Housing Finance Agency Multi Family Housing Revenue, Series B, 0.27%, 11/1/36, (LOC: Bank of America NA)(c) | 15,100,000 | ||||
39,000,000 | New York State Housing Finance Agency Multi Family Housing Worth St. Revenue, Series A, 0.26%, 5/15/33, (Credit Support: Fannie Mae)(c) | 39,000,000 | ||||
16,400,000 | New York State Housing Finance Agency Revenue, West 37th St. Project, Series B, 0.28%, 5/1/42, (LOC: Wells Fargo Bank)(c) | 16,400,000 | ||||
58,585,000 | New York State Urban Development Corp. Public Improvement Revenue, 0.56%, 12/15/10 | 58,585,000 | ||||
530,940,000 | ||||||
North Carolina — 0.15% | ||||||
23,165,000 | Roman Catholic Diocese of Raleigh Revenue, Series A, 0.40%, 6/1/18, (LOC: Bank of America NA)(c) | 23,165,000 | ||||
Ohio — 0.52% | ||||||
10,670,000 | City of Grove Multi Family Housing Regency Arms Apartment Revenue, 0.34%, 6/15/30, (Credit Support: Fannie Mae)(c) | 10,670,000 | ||||
57,880,000 | County of Cuyahoga MetroHealth System Refunding Revenue, 0.25%, 2/1/35, (LOC: PNC Bank NA)(c) | 57,880,000 | ||||
12,500,000 | Ohio State Higher Educational Facilities Refunding Revenue, Series B, 0.29%, 5/1/42, (LOC: U.S. Bank NA)(c) | 12,500,000 | ||||
81,050,000 | ||||||
Pennsylvania — 1.33% | ||||||
51,200,000 | Allegheny County Industrial Development Authority Children’s Hospital Revenue, Series A, 0.26%, 10/1/32, (LOC: Bank of America NA)(c) | 51,200,000 |
18
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Prime Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
$26,900,000 | Blair County Industrial Development Authority Refunding Revenue, 0.28%, 10/1/28, (LOC: PNC Bank NA)(c) | $ | 26,900,000 | |||
18,910,000 | City of Philadelphia Refunding Revenue, Series C, 0.25%, 6/15/25, (LOC: TD Bank NA)(c) | 18,910,000 | ||||
20,900,000 | City of Reading Refunding GO, Series D, 0.28%, 11/1/32, (LOC:Wells Fargo Bank)(c) | 20,900,000 | ||||
26,995,000 | Lehigh County General Purpose Authority Refunding Revenue, Series B, 0.28%, 11/1/27, (Credit Support: Assured GTY)(c) | 26,995,000 | ||||
33,400,000 | Pennsylvania Economic Development Financial Authority Revenue, 0.28%, 11/1/28, (LOC: Bank of America NA)(c) | 33,400,000 | ||||
29,460,000 | Pennsylvania Higher Educational Facilties Authority Drexel University Revenue, Series B, 0.27%, 5/1/37, (LOC: Wells Fargo Bank)(c) | 29,460,000 | ||||
207,765,000 | ||||||
Rhode Island — 0.14% | ||||||
20,940,000 | Rhode Island Health & Educational Building Corp. Refunding Revenue, Series A, 0.28%, 8/15/34, (LOC: Bank of America NA)(c) | 20,940,000 | ||||
South Carolina — 0.19% | ||||||
30,180,000 | South Carolina Transportation Infrastructure Bank Refunding Revenue, Series B-1, 0.28%, 10/1/31, (LOC: Bank of America NA)(c) | 30,180,000 | ||||
South Dakota — 0.35% | ||||||
15,700,000 | South Dakota Housing Development Authority Revenue, Series C, 0.27%, 5/1/37(c) | 15,700,000 | ||||
25,000,000 | South Dakota Housing Development Authority Revenue, Series G, 0.26%, 5/1/35(c) | 25,000,000 | ||||
13,200,000 | South Dakota Housing Development Authority Revenue, Series I, 0.27%, 5/1/38(c) | 13,200,000 | ||||
53,900,000 | ||||||
Tennessee — 0.07% | ||||||
11,500,000 | Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Revenue, 0.31%, 6/1/42, (LOC: Citibank NA)(c) | 11,500,000 | ||||
Texas — 0.58% | ||||||
51,500,000 | North Central Texas Health Facility Development Corp. Revenue, Series B, 0.27%, 8/15/30, (Credit Support: AGM)(c) | 51,500,000 | ||||
6,845,000 | Texas State Veteran’s Fund Refunding GO, Series I-C, 0.27%, 12/1/25(c) | 6,845,000 | ||||
12,595,000 | Texas State Veteran’s Housing Refunding GO, 0.27%, 6/1/31, (LOC: JP Morgan Chase Bank)(c) | 12,595,000 | ||||
20,000,000 | Texas State Veteran’s Housing Revenue, Series A-2, 0.25%, 12/1/29(c) | 20,000,000 | ||||
90,940,000 | ||||||
19
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Prime Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
Utah — 0.14% | ||||||
$ 8,570,000 | Ogden City Redevelopment Agency Refunding Revenue, Series A, 0.33%, 6/1/31, (LOC: Wells Fargo Bank)(c) | $ | 8,570,000 | |||
12,805,000 | Utah Housing Corp. Single Family Mortgage Revenue, Series C-2, Class I, 0.30%, 1/1/38(c) | 12,805,000 | ||||
21,375,000 | ||||||
Virginia — 2.02% | ||||||
182,729,000 | Federal Home Loan Mortgage Corp., Multi Family Housing Revenue, Series M017, Class A, 0.31%, 9/15/49, (Credit Support: Freddie Mac)(c) | 182,729,000 | ||||
22,200,000 | Montgomery County Industrial Development Authority Refunding Revenue, Series A, 0.28%, 2/1/39(c) | 22,200,000 | ||||
16,625,000 | Montgomery County Industrial Development Authority Refunding Revenue, Series B, 0.35%, 2/1/39(c) | 16,625,000 | ||||
17,255,000 | Newport News Industrial Development Authority Industrial Improvement Revenue, Series B, 0.28%, 7/1/31, (LOC: Wells Fargo Bank)(c) | 17,255,000 | ||||
26,515,000 | Stafford County & Staunton Industrial Development Authority Revenue, Series B1, 0.28%, 12/1/28, (LOC: Bank of America NA)(c) | 26,515,000 | ||||
18,020,000 | Stafford County & Staunton Industrial Development Authorty Revenue TECP, 0.32%, 12/2/10 | 18,020,000 | ||||
32,500,000 | Virginia Small Business Financing Authority Hampton University Revenue, Series A, 0.25%, 12/1/38, (LOC: PNC Bank NA)(c) | 32,500,000 | ||||
315,844,000 | ||||||
Washington — 0.04% | ||||||
6,700,000 | Port Seattle Industrial Development Corp. Crowley Marine Services Project Revenue, 0.31%, 12/31/21, (LOC: Citibank NA)(c) | 6,700,000 | ||||
Wisconsin — 1.15% | ||||||
51,000,000 | Wisconsin Health & Educational Facilities Authority Refunding Revenue, 0.25%, 8/15/36, (LOC: JP Morgan Chase Bank)(c) | 51,000,000 | ||||
73,515,000 | Wisconsin Housing & Economic Development Authority Refunding Revenue, Series A, 0.26%, 9/1/38, (Credit Support: GO of Authority), (LOC: Fannie Mae)(c) | 73,515,000 | ||||
21,985,000 | Wisconsin Housing & Economic Development Authority Refunding Revenue, Series F, 0.27%, 5/1/30, (Credit Support: GO of Authority(c) | 21,985,000 | ||||
32,135,000 | Wisconsin Housing & Economic Development Authority Refunding Revenue, Series F, 0.27%, 11/1/30, (Credit Support: GO of Authority(c) | 32,135,000 | ||||
178,635,000 | ||||||
Total Municipal Bonds | 2,981,767,000 | |||||
(Cost $2,981,767,000) |
20
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Prime Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
U.S. Government Agency Backed Mortgages — 1.28% | ||||||
Fannie Mae — 1.28% | ||||||
$ 66,020,000 | Pool #463890, 0.55%, 11/1/10(b) | $ | 65,988,732 | |||
60,000,000 | Pool #464168, 0.41%, 10/1/10(b) | 60,000,000 | ||||
74,284,000 | Pool #464195, 0.44%, 10/1/10(b) | 74,284,000 | ||||
200,272,732 | ||||||
Total U.S. Government Agency Backed Mortgages | 200,272,732 | |||||
(Cost $200,272,732) | ||||||
U.S. Government Agency Obligations — 12.01% | ||||||
Fannie Mae — 1.17% | ||||||
65,000,000 | 1.75%, 3/23/11 | 65,447,376 | ||||
116,955,000 | 0.44%, 12/1/10(b) | 116,867,804 | ||||
182,315,180 | ||||||
Federal Home Loan Bank — 10.39% | ||||||
450,000,000 | 0.17%, 11/18/10(c) | 449,996,982 | ||||
75,000,000 | 0.27%, 9/20/11(c) | 75,000,000 | ||||
83,525,000 | 0.28%, 10/4/11(c) | 83,525,000 | ||||
75,000,000 | 0.29%, 9/30/11(c) | 75,000,000 | ||||
137,000,000 | 0.58%, 5/27/11 | 136,993,568 | ||||
170,075,000 | 0.75%, 3/18/11 | 170,242,691 | ||||
196,375,000 | 2.88%, 3/11/11 | 198,639,313 | ||||
275,000,000 | 0.16%, 7/11/11(c) | 274,927,228 | ||||
58,000,000 | 0.33%, 12/10/10 | 57,987,208 | ||||
100,000,000 | 0.37%, 5/27/11(c) | 100,000,000 | ||||
1,622,311,990 | ||||||
Freddie Mac — 0.45% | ||||||
70,035,000 | 0.30%, 11/16/10(b) | 70,008,153 | ||||
Total U.S. Government Agency Obligations | 1,874,635,323 | |||||
(Cost $1,874,635,323) | ||||||
U.S. Treasury Obligations — 2.82% | ||||||
U.S. Treasury Notes — 2.82% | ||||||
80,000,000 | 0.88%, 2/28/11 | 80,150,124 | ||||
80,000,000 | 0.88%, 4/30/11 | 80,174,385 | ||||
90,000,000 | 1.00%, 7/31/11 | 90,541,180 | ||||
75,000,000 | 1.00%, 10/31/11 | 75,571,540 | ||||
112,500,000 | 4.25%, 1/15/11 | 113,700,246 | ||||
Total U.S. Treasury Obligations | 440,137,475 | |||||
(Cost $440,137,475) |
21
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Prime Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
Repurchase Agreements — 16.69% | ||||||
$ 50,500,000 | Bank of America Securities LLC dated 9/30/10; due 10/1/10 at 0.17% with maturity value of $50,500,238 (fully collateralized by a Fannie Mae security with a maturity date of 12/29/10 at a rate of 0.00%) | $ | 50,500,000 | |||
185,000,000 | Bank of America Securities LLC dated 9/30/10; due 10/1/10 at 0.18% with maturity value of $185,000,925 (fully collateralized by Fannie Mae securities with maturity dates ranging from 9/1/25 to 12/1/38 at rates ranging from 3.50% to 5.50%) | 185,000,000 | ||||
200,000,000 | Barclays Capital Inc. dated 9/30/10; due 10/1/10 at 0.15% with maturity value of $200,000,833 (fully collateralized by US Treasury Inflation Notes with maturity dates ranging from 5/31/12 to 9/30/16 at rates ranging from 0.75% to 3.00%) | 200,000,000 | ||||
100,000,000 | Barclays Capital Inc. dated 9/8/10; due 10/8/10 at 0.21% with maturity value of $100,017,500 (fully collateralized by Fannie Mae and Freddie Mac securities with maturity dates ranging from 7/1/30 to 9/1/40 at a rate of 4.50% )(d) | 100,000,000 | ||||
355,000,000 | BNP Paribas Securities Corp. dated 9/30/10; due 10/1/10 at 0.21% with maturity value of $355,002,071 (fully collateralized by Fannie Mae and Freddie Mac securities with maturity dates ranging from 12/1/21 to 8/1/40 at rates ranging from 4.50% to 6.50%) | 355,000,000 | ||||
315,000,000 | Citigroup Global dated 9/30/10; due 10/1/10 at 0.30% with maturity value of $315,002,625 (fully collateralized by Fannie Mae and Freddie Mac securities with maturity dates ranging from 1/1/18 to 12/1/47 at rates ranging from 4.00% to 7.50%) | 315,000,000 | ||||
325,000,000 | Deutsche Bank AG dated 9/30/10; due 10/1/10 at 0.28% with maturity value of $325,002,528 (fully collateralized by Fannie Mae securities with maturity dates ranging from 7/1/37 to 7/1/40 at a rate of 5.00%) | 325,000,000 | ||||
315,000,000 | Goldman Sachs & Co. dated 9/30/10; due 10/1/10 at 0.21% with maturity value of $315,001,837 (fully collateralized by Fannie Mae and Freddie Mac securities with maturity dates ranging from 6/1/24 to 10/1/47 at rates ranging from 3.50% to 6.50%) | 315,000,000 | ||||
170,000,000 | JP Morgan Securities Inc. dated 9/30/10; due 10/1/10 at 0.30% with maturity value of $170,001,417 (fully collateralized by Fannie Mae securities with maturity dates ranging from 4/1/13 to 10/1/40 at rates ranging from 4.00% to 8.50%) | 170,000,000 | ||||
355,000,000 | JP Morgan Securities Inc. dated 9/30/10; due 10/1/10 at 0.40% with maturity value of $355,003,944 (fully collateralized by Fannie Mae securities with maturity dates ranging from 7/1/12 to 9/1/47 at rates ranging from 4.00% to 13.00%) | 355,000,000 | ||||
235,000,000 | Morgan Stanley & Co. dated 9/30/10; due 10/1/10 at 0.28% with maturity value of $235,001,828 (fully collateralized by Fannie Mae securities with maturity dates ranging from 4/1/34 to 9/1/47 at rates ranging from 2.88% to 6.50%) | 235,000,000 | ||||
Total Repurchase Agreements | 2,605,500,000 | |||||
(Cost $2,605,500,000) |
22
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Prime Money Market Fund (cont.)
September 30, 2010 | ||||
Total Investments | 15,970,428,836 | |||
(Cost $15,970,428,836)(e) — 102.29% | ||||
Liabilities in excess of other assets — (2.29)% | (357,798,595 | ) | ||
NET ASSETS — 100.00% | $ | 15,612,630,241 | ||
(a) | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. Security has been deemed to be liquid based on procedures approved by the Board of Trustees. | |
(b) | Represents effective yield to maturity on date of purchase. | |
(c) | Variable rate security. The rate reflected in the Schedule of Portfolio Investments is the rate in effect on September 30, 2010. The maturity date represents the actual maturity date. The security’s effective maturity resets periodically. | |
(d) | This security is restricted and illiquid as the securities may not be offered or sold within the United States or to U.S. persons except to qualified purchasers who are also either qualified institutional buyers or “accredited investors” (as defined in Rule 501 (a) of Regulation D under the Securities Act of 1933). The total investment in restricted and illiquid securities representing $100,000,000 or 0.64% of net assets was as follows: |
Acquisition Principal Amount | Issuer | Acquisition Date | Acquisition Cost | 9/30/2010 Carrying Value Per Unit | ||||||
$100,000,000 | Barclays Capital Inc. | 9/8/2010 | $100,000,000 | $100.00 |
(e) | Tax cost of securities is equal to book cost of securities. | |||
(f) | Issuer is a U.S. branch of a foreign domiciled bank. |
Abbreviations used are defined below: |
AGM - Assured Guaranty Municipal |
BHAC - Berkshire Hathaway Assurance Corp. |
COP - Certificate of Participation |
GO - General Obligation |
GTY - Guaranty |
LOC - Letter of Credit |
TECP - Tax Exempt Commercial Paper |
STEP - Step Coupon Bond |
See notes to financial statements. |
23
SCHEDULE OF PORTFOLIO INVESTMENTS
|
U.S. Government Money Market Fund
September 30, 2010 | ||||||||
Principal Amount | Value | |||||||
| Asset Backed Commercial Paper — 3.03% | |||||||
| Finance - Diversified Domestic — 3.03% | |||||||
$ | 149,500,000 | Straight-A Funding LLC, 0.31%, 10/28/10(a)(b) | $ | 149,465,241 | ||||
| Total Asset Backed Commercial Paper | 149,465,241 | ||||||
| (Cost $149,465,241) | |||||||
| FDIC-TLGP Backed Corporate Bonds — 12.02% | |||||||
| Banks - Domestic — 3.33% | |||||||
33,500,000 | American Express Bank FSB, 1.11%, 12/10/10(c) | 33,559,230 | ||||||
21,941,000 | Bank of America NA, 1.70%, 12/23/10 | 21,998,643 | ||||||
39,530,000 | Citibank NA, 0.44%, 3/30/11(c) | 39,571,400 | ||||||
50,000,000 | Citibank NA, 1.38%, 8/10/11 | 50,423,356 | ||||||
18,900,000 | Union Bank NA, 0.37%, 3/16/11(c) | 18,911,064 | ||||||
164,463,693 | ||||||||
| Finance - Diversified Domestic — 8.69% | |||||||
20,810,000 | Citigroup Funding, Inc., 0.25%, 6/3/11(c) | 20,809,612 | ||||||
31,000,000 | Citigroup Funding, Inc., 1.38%, 5/5/11 | 31,197,340 | ||||||
34,100,000 | General Electric Capital Corp., 0.37%, 3/11/11(c) | 34,119,845 | ||||||
26,000,000 | General Electric Capital Corp., 1.63%, 1/7/11 | 26,082,692 | ||||||
54,216,000 | General Electric Capital Corp., 1.80%, 3/11/11 | 54,549,936 | ||||||
9,500,000 | Goldman Sachs Group, Inc., 0.37%, 3/15/11(c) | 9,505,525 | ||||||
34,724,000 | Goldman Sachs Group, Inc., 0.80%, 12/3/10(c) | 34,757,200 | ||||||
42,685,000 | Goldman Sachs Group, Inc., 1.63%, 7/15/11 | 43,129,440 | ||||||
18,450,000 | JPMorgan Chase & Co., 0.42%, 2/23/11(c) | 18,459,625 | ||||||
64,580,000 | JPMorgan Chase & Co., 0.66%, 4/1/11(c) | 64,639,172 | ||||||
34,350,000 | JPMorgan Chase & Co., 0.80%, 12/2/10(c) | 34,382,365 | ||||||
28,175,000 | JPMorgan Chase & Co., 2.63%, 12/1/10 | 28,282,170 | ||||||
14,410,000 | Morgan Stanley, 0.87%, 3/4/11(c) | 14,448,578 | ||||||
14,826,000 | Morgan Stanley, 2.90%, 12/1/10 | 14,885,612 | ||||||
429,249,112 | ||||||||
| Total FDIC-TLGP Backed Corporate Bonds | 593,712,805 | ||||||
| (Cost $593,712,805) | |||||||
| FHLB Backed Corporate Bonds — 0.37% | |||||||
| Finance - Diversified Domestic — 0.37% | |||||||
14,160,000 | GFRE Holdings LLC, 0.30%, 12/1/49(c) | 14,160,000 | ||||||
4,140,000 | Herman & Kittle Capital LLC, 0.27%, 2/1/37(c) | 4,140,000 | ||||||
18,300,000 | ||||||||
| Total FHLB Backed Corporate Bonds | 18,300,000 | ||||||
| (Cost $18,300,000) |
24
SCHEDULE OF PORTFOLIO INVESTMENTS
|
U.S. Government Money Market Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
U.S. Government Agency Backed Municipal Bonds — 27.31% | ||||||
California — 5.71% | ||||||
$10,500,000 | California Housing Finance Agency Revenue, Series A, 0.25%, 8/1/36, (Credit Support: GO of Agency), (LOC: Fannie Mae)(c) | $ | 10,500,000 | |||
44,275,000 | California Housing Finance Agency Revenue, Series A, 0.26%, 8/1/35, (LOC: Fannie Mae)(c) | 44,275,000 | ||||
9,200,000 | California Housing Finance Agency Revenue, Series B, 0.25%, 8/1/36, (LOC: Fannie Mae)(c) | 9,200,000 | ||||
79,815,000 | California Housing Finance Agency Revenue, Series C, 0.26%, 8/1/37, (LOC: Fannie Mae)(c) | 79,815,000 | ||||
34,620,000 | California Housing Finance Agency Revenue, Series D, 0.26%, 8/1/22, (LOC: Fannie Mae)(c) | 34,620,000 | ||||
14,600,000 | California Statewide Community Development Agency Multifamily Revenue, 0.30%, 10/15/36, (Credit Support: Fannie Mae)(c) | 14,600,000 | ||||
4,764,000 | City of Los Angeles Multifamily Housing-Fountain Park Project Revenue, Series A, 0.29%, 3/15/34, (Credit Support: Fannie Mae)(c) | 4,764,000 | ||||
27,700,000 | Orange County Apartment Development, Riverbend Apartments Refunding Revenue, Series B, 0.23%, 12/1/29, (Credit Support: Freddie Mac)(c) | 27,700,000 | ||||
17,140,000 | Santa Rosa Housing Authority, Apple Creek Apartments Revenue, Series E, 0.25%, 3/1/12, (Credit Support: Freddie Mac)(c) | 17,140,000 | ||||
18,470,000 | Southern California Home Financing Authority Revenue, Series A, 0.30%, 8/1/33, (LOC: Freddie Mac)(c) | 18,470,000 | ||||
20,830,000 | Southern California Home Financing Authority Revenue, Series B, 0.30%, 2/1/35, (LOC: Fannie Mae)(c) | 20,830,000 | ||||
281,914,000 | ||||||
Colorado — 3.18% | ||||||
6,800,000 | Colorado Housing & Finance Authority Insured Mortgage Revenue, Series AA, 0.28%, 10/1/30, (LOC: Fannie Mae)(c) | 6,800,000 | ||||
34,900,000 | Colorado Housing & Finance Authority Refunding Revenue, Class I, Series B1, 0.25%, 5/1/38, (LOC: Fannie Mae)(c) | 34,900,000 | ||||
19,765,000 | Colorado Housing & Finance Authority Refunding Revenue, Class I, Series C1, 0.25%, 11/1/32, (LOC: Fannie Mae)(c) | 19,765,000 | ||||
6,425,000 | Colorado Housing & Finance Authority Revenue, Class I Series SF-1, 0.26%, 11/1/36, (LOC: Fannie Mae)(c) | 6,425,000 | ||||
27,100,000 | Colorado Housing & Finance Authority Revenue, Class I, Series A2, 0.30%, 5/1/38, (LOC: Fannie Mae)(c) | 27,100,000 | ||||
6,500,000 | Colorado Housing & Finance Authority Revenue, Class I, Series A3, 0.28%, 5/1/38, (LOC: Fannie Mae)(c) | 6,500,000 | ||||
19,500,000 | Colorado Housing & Finance Authority Taxable Revenue, Class 1, Series A1, 0.30%, 11/1/37, (Credit Support:GO of Authority), (LOC: Fannie Mae)(c) | 19,500,000 | ||||
12,100,000 | Colorado Housing & Finance Authority Taxable Revenue, Class 1, Series B1, 0.30%, 11/1/36, (LOC: Fannie Mae)(c) | 12,100,000 | ||||
12,100,000 | Colorado Housing & Finance Authority Taxable Revenue, Class 1, Series C1, 0.30%, 11/1/36, (LOC: Fannie Mae)(c) | 12,100,000 |
25
SCHEDULE OF PORTFOLIO INVESTMENTS
|
U.S. Government Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
$11,860,000 | Colorado Housing & Finance Authority Taxable Revenue, Series B-1, 0.30%, 11/1/33, (LOC: Fannie Mae)(c) | $ | 11,860,000 | |||
157,050,000 | ||||||
Florida — 1.83% | ||||||
22,840,000 | Highlands County Health Facilities Authority Refunding Revenue, Series B, 0.25%, 11/15/26, (LOC: Federal Home Loan Bank)(c) | 22,840,000 | ||||
26,500,000 | Highlands County Health Facilities Authority Refunding Revenue, Series C, 0.25%, 11/15/26, (LOC: Federal Home Loan Bank)(c) | 26,500,000 | ||||
27,500,000 | Highlands County Health Facilities Authority Refunding Revenue, Series D, 0.25%, 11/15/26, (LOC: Federal Home Loan Bank)(c) | 27,500,000 | ||||
13,400,000 | West Orange Healthcare District Refunding Revenue, 0.26%, 2/1/22, (LOC: Federal Home Loan Bank)(c) | 13,400,000 | ||||
90,240,000 | ||||||
Idaho — 0.61% | ||||||
30,000,000 | Idaho Housing & Finance Association Revenue, Class I, Series J1, 0.33%, 1/1/39, (LOC: Fannie Mae)(c) | 30,000,000 | ||||
Indiana — 0.60% | ||||||
29,700,000 | City of Indianapolis Lakeside Pointe & Fox Club Refunding Revenue, 0.23%, 11/15/37, (Credit Support: Fannie Mae)(c) | 29,700,000 | ||||
Louisiana — 0.26% | ||||||
12,600,000 | Louisiana Public Facilities Authority Refunding Revenue, 0.28%, 4/1/36, (Credit Support: Freddie Mac)(c) | 12,600,000 | ||||
Michigan — 0.80% | ||||||
10,250,000 | Lansing Economic Development Corp. Revenue, 0.30%, 3/1/42, (LOC: Federal Home Loan Bank)(c) | 10,250,000 | ||||
20,000,000 | Michigan State Housing Development Authority Refunding Revenue, Series B, 0.33%, 6/1/38, (LOC: Fannie Mae)(c) | 20,000,000 | ||||
9,500,000 | Michigan State Housing Development Authority Refunding Revenue, Series C, 0.30%, 6/1/39, (LOC: Fannie Mae)(c) | 9,500,000 | ||||
39,750,000 | ||||||
Mississippi — 0.24% | ||||||
12,000,000 | Mississippi Business Finance Corp. Gulf Opportunity Zone Resources LLC Refunding Revenue, 0.26%, 5/1/32, (LOC: Federal Home Loan Bank)(c) | 12,000,000 | ||||
New York — 11.32% | ||||||
38,600,000 | New York City Housing Development Corp. 2 Gold Street Revenue, Series A, 0.25%, 4/15/36, (Credit Support: Fannie Mae)(c) | 38,600,000 | ||||
23,100,000 | New York City Housing Development Corp. 201 Pearl Street Development Revenue, Series A, 0.25%, 10/15/41, (Credit Support: Fannie Mae)(c) | 23,100,000 |
26
SCHEDULE OF PORTFOLIO INVESTMENTS
|
U.S. Government Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
$14,205,000 | New York City Housing Development Corp. First Avenue Development Revenue, Series A, 0.30%, 10/15/35, (Credit Support: Fannie Mae)(c) | $ | 14,205,000 | |||
21,900,000 | New York City Housing Development Corp. Multi Family Housing Revenue, Royal Properties Series A, 0.25%, 4/15/35, (Credit Support: Fannie Mae)(c) | 21,900,000 | ||||
36,770,000 | New York City Housing Development Corp. Multifamily Rental Housing Revenue, Series A, 0.28%, 11/15/19, (Credit Support: Fannie Mae)(c) | 36,770,000 | ||||
39,000,000 | New York City Housing Development Corp. W. 61 St. Apartments Revenue, Series A, 0.26%, 12/15/37, (Credit Support: Fannie Mae)(c) | 39,000,000 | ||||
40,735,000 | New York Liberty Development Corp. World Trade Center Project Revenue, Series A, 0.50%, 12/1/49(c) | 40,743,874 | ||||
55,500,000 | New York State Dormitory Authority Revenue, Series A, 0.25%, 11/15/36, (Credit Support: Fannie Mae)(c) | 55,500,000 | ||||
27,000,000 | New York State Housing Finance Agency 316 11th Ave. Revenue, Series A, 0.26%, 5/15/41, (Credit Support: Fannie Mae)(c) | 27,000,000 | ||||
8,000,000 | New York State Housing Finance Agency 38 St. Revenue, Series B, 0.25%, 5/15/33, (Credit Support: Fannie Mae)(c) | 8,000,000 | ||||
60,100,000 | New York State Housing Finance Agency 900 8th Ave. Revenue, Series A, 0.27%, 5/15/35, (Credit Support: Fannie Mae)(c) | 60,100,000 | ||||
41,750,000 | New York State Housing Finance Agency North End Revenue, Series A, 0.25%, 11/15/36, (Credit Support: Fannie Mae)(c) | 41,750,000 | ||||
43,785,000 | New York State Housing Finance Agency Revenue, Series A, 0.28%, 5/1/35, (Credit Support: Freddie Mac)(c) | 43,785,000 | ||||
8,000,000 | New York State Housing Finance Agency W. 23 St. Revenue, Series B, 0.25%, 5/15/33, (Credit Support: Fannie Mae)(c) | 8,000,000 | ||||
50,000,000 | New York State Housing Finance Agency, 125 West 31st. Revenue, Series A, 0.26%, 5/15/38, (Credit Support: Fannie Mae)(c) | 50,000,000 | ||||
10,400,000 | New York State Housing Finance Agency, 360 W. 43rd. St. Revenue, Series A, 0.26%, 11/15/33, (Credit Support: Fannie Mae)(c) | 10,400,000 | ||||
40,000,000 | New York State Housing Finance Agency, Clinton Green South Revenue, Series A, 0.26%, 11/1/38, (Credit Support: Freddie Mac)(c) | 40,000,000 | ||||
558,853,874 | ||||||
Pennsylvania — 1.25% | ||||||
16,660,000 | Pennsylvania Housing Finance Agency Single Family Mortgage Refunding Revenue, Series 84D, 0.29%, 10/1/34, (Credit Support: GO of Agency), (LOC: Freddie Mac)(c) | 16,660,000 | ||||
10,000,000 | Pennsylvania Housing Finance Agency Single Family Mortgage Revenue, Series 83B, 0.27%, 4/1/35, (LOC: Freddie Mac)(c) | 10,000,000 | ||||
13,370,000 | Pennsylvania Housing Finance Agency Single Family Mortgage Revenue, Series 85B, 0.27%, 4/1/35, (Credit Support: GO of Agency)(c) | 13,370,000 | ||||
10,000,000 | Pennsylvania Housing Finance Agency Single Family Mortgage Revenue, Series 87B, 0.25%, 4/1/35, (LOC: Fannie Mae)(c) | 10,000,000 |
27
SCHEDULE OF PORTFOLIO INVESTMENTS
|
U.S. Government Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
$ 11,500,000 | Pennsylvania Housing Finance Agency Single Family Refunding Revenue, Series 91B, 0.29%, 10/1/36, (Credit Support: GO of Agency), (LOC: Freddie Mac)(c) | $ | 11,500,000 | |||
61,530,000 | ||||||
Tennessee — 0.17% | ||||||
8,310,000 | Shelby County Health Educational & Housing Facilities Board Revenue, 0.29%, 12/15/37, (Credit Support: Fannie Mae)(c) | 8,310,000 | ||||
Virginia — 0.35% | ||||||
17,500,000 | Lynchburg Industrial Development Authority, Hospital Central Health Refunding Revenue, Series A, 0.26%, 1/1/28, (LOC: Federal Home Loan Bank)(c) | 17,500,000 | ||||
Wyoming — 0.99% | ||||||
12,000,000 | Wyoming Community Development Authority Housing Revenue, Series 11, 0.31%, 12/1/38, (LOC: Fannie Mae)(c) | 12,000,000 | ||||
10,000,000 | Wyoming Community Development Authority Housing Revenue, Series 7, 0.31%, 6/1/37, (LOC: Fannie Mae)(c) | 10,000,000 | ||||
10,000,000 | Wyoming Community Development Authority Housing Revenue, Series 9, 0.31%, 6/1/37, (LOC: Fannie Mae)(c) | 10,000,000 | ||||
17,000,000 | Wyoming Community Development Authority Revenue, Series A, 0.27%, 12/1/32, (LOC: Fannie Mae)(c) | 17,000,000 | ||||
49,000,000 | ||||||
Total U.S. Government Agency Backed Municipal Bonds | 1,348,447,874 | |||||
(Cost $1,348,447,874) | ||||||
U.S. Government Agency Backed Mortgages — 1.09% | ||||||
Fannie Mae — 1.09% | ||||||
53,572,400 | Pool #464168, 0.41%, 10/1/10(b) | 53,572,400 | ||||
Total U.S. Government Agency Backed Mortgages | 53,572,400 | |||||
(Cost $53,572,400) | ||||||
U.S. Government Agency Obligations — 40.47% | ||||||
Fannie Mae — 9.98% | ||||||
125,000,000 | 0.25%, 1/26/11(b) | 124,900,469 | ||||
75,000,000 | 0.29%, 4/1/11(b) | 74,890,042 | ||||
113,313,900 | 0.34%, 7/1/11(b) | 113,021,739 | ||||
38,985,000 | 0.44%, 12/1/10(b) | 38,955,935 | ||||
74,636,000 | 0.45%, 12/1/10(b) | 74,579,722 | ||||
33,125,000 | 1.75%, 3/23/11 | 33,352,990 | ||||
31,634,000 | 6.00%, 5/15/11 | 32,752,296 | ||||
492,453,193 | ||||||
Federal Home Loan Bank — 18.91% | ||||||
68,000,000 | 0.16%, 7/20/11(c) | 67,981,019 | ||||
130,000,000 | 0.16%, 7/11/11(c) | 129,965,368 | ||||
47,270,000 | 0.19%, 1/14/11(c) | 47,270,000 |
28
SCHEDULE OF PORTFOLIO INVESTMENTS
|
U.S. Government Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
$100,000,000 | 0.20%, 11/19/10(c) | $ | 99,997,881 | |||
92,000,000 | 0.20%, 5/2/11(c) | 91,980,938 | ||||
150,000,000 | 0.27%, 9/20/11(c) | 150,000,000 | ||||
18,600,000 | 0.33%, 12/10/10 | 18,595,898 | ||||
85,000,000 | 0.37%, 6/10/11(b) | 85,000,000 | ||||
50,000,000 | 0.48%, 10/25/10 | 50,006,514 | ||||
100,000,000 | 0.50%, 10/25/10 | 100,003,590 | ||||
75,000,000 | 0.58%, 5/27/11 | 74,996,479 | ||||
17,585,000 | 1.63%, 7/27/11 | 17,775,375 | ||||
933,573,062 | ||||||
Freddie Mac — 11.38% | ||||||
125,000,000 | 0.23%, 12/6/10(b) | 124,948,437 | ||||
55,000,000 | 0.30%, 11/16/10(b) | 54,978,917 | ||||
10,100,000 | 0.31%, 11/18/10(b) | 10,095,825 | ||||
5,050,000 | 0.33%, 2/1/11(c) | 5,048,502 | ||||
79,120,000 | 0.36%, 3/9/11(c) | 79,177,210 | ||||
50,000,000 | 0.38%, 11/10/10(c) | 49,994,103 | ||||
16,675,000 | 0.58%, 4/7/11(c) | 16,682,423 | ||||
19,400,000 | 0.59%, 4/1/11(c) | 19,411,850 | ||||
125,000,000 | 3.25%, 2/25/11 | 126,398,647 | ||||
37,700,000 | 4.75%, 12/8/10 | 38,010,679 | ||||
35,862,000 | 6.00%, 6/15/11 | 37,285,488 | ||||
562,032,081 | ||||||
Overseas Private Investment Corp. — 0.20% | ||||||
1,400,000 | 0.24%, 3/15/15(c) | 1,400,000 | ||||
8,583,826 | 0.24%, 11/15/13(c) | 8,583,826 | ||||
9,983,826 | ||||||
Total U.S. Government Agency Obligations | 1,998,042,162 | |||||
(Cost $1,998,042,162) | ||||||
U.S. Treasury Obligations — 3.82% | ||||||
U.S. Treasury Notes — 3.82% | ||||||
20,000,000 | 0.88%, 2/28/11 | 20,037,531 | ||||
20,000,000 | 0.88%, 4/30/11 | 20,043,596 | ||||
35,000,000 | 1.00%, 7/31/11 | 35,210,459 | ||||
25,000,000 | 1.00%, 10/31/11 | 25,190,513 | ||||
37,500,000 | 4.25%, 1/15/11 | 37,900,082 | ||||
50,000,000 | 4.50%, 11/15/10 | 50,250,195 | ||||
Total U.S. Treasury Obligations | 188,632,376 | |||||
(Cost $188,632,376) |
29
SCHEDULE OF PORTFOLIO INVESTMENTS
|
U.S. Government Money Market Fund (cont.)
Principal Amount | Value | |||||
Repurchase Agreements — 16.00% | ||||||
$ 50,000,000 | Bank of America Securities LLC dated 9/30/10; due 10/1/10 at 0.18% with maturity value of $50,000,250 (fully collateralized by Fannie Mae, Freddie Mac, Federal Farm Credit Bank and Federal Home Loan Bank securities with maturity dates ranging from 3/16/11 to 9/1/40 at rates ranging from 1.63% to 4.50%) | $ | 50,000,000 | |||
200,000,000 | Barclays Capital Inc. dated 9/8/10; due 10/8/10 at 0.21% with maturity value of $200,035,000 (fully collateralized by Fannie Mae and Freddie Mac securities with maturity dates ranging from 7/1/30 to 10/1/40 at rates ranging from 4.50% to 5.00%)(d) | 200,000,000 | ||||
95,000,000 | BNP Paribas Securities Corp. dated 9/30/10; due 10/1/10 at 0.21% with maturity value of $95,000,554 (fully collateralized by a Freddie Mac security with maturity date 7/1/25 at a rate of 4.00%) | 95,000,000 | ||||
85,000,000 | Citigroup Global dated 9/30/10; due 10/1/10 at 0.30% with maturity value of $85,000,708 (fully collateralized by Fannie Mae and Freddie Mac securities with maturity dates ranging from 3/1/18 to 12/1/39 at rates ranging from 4.00% to 6.50%) | 85,000,000 | ||||
85,000,000 | Deutsche Bank AG dated 9/30/10; due 10/1/10 at 0.28% with maturity value of $85,000,661 (fully collateralized by a Fannie Mae security with maturity date 3/1/37 at a rate of 7.00%) | 85,000,000 | ||||
85,000,000 | Goldman Sachs & Co. dated 9/30/10; due 10/1/10 at 0.21% with maturity value of $85,000,496 (fully collateralized by Fannie Mae and Freddie Mac securities with maturity dates ranging from 10/1/25 to 9/1/40 at rates ranging from 4.00% to 6.00%) | 85,000,000 | ||||
30,000,000 | JP Morgan Securities Inc. dated 9/30/10; due 10/1/10 at 0.30% with maturity value of $30,000,250 (fully collateralized by Fannie Mae securities with maturity dates ranging from 12/1/17 to 5/1/40 at rates ranging from 5.00% to 7.50%) | 30,000,000 | ||||
95,000,000 | JP Morgan Securities Inc. dated 9/30/10; due 10/1/10 at 0.40% with maturity value of $95,001,056 (fully collateralized by Fannie Mae securities with maturity dates ranging from 7/1/14 to 9/1/50 at rates ranging from 4.50% to 11.00%) | 95,000,000 | ||||
65,000,000 | Morgan Stanley & Co. dated 9/30/10; due 10/1/10 at 0.28% with maturity value of $65,000,506 (fully collateralized by Fannie Mae securities with maturity dates ranging from 1/1/40 to 4/1/40 at rates ranging from 3.69% to 5.50%) | 65,000,000 | ||||
Total Repurchase Agreements | 790,000,000 | |||||
(Cost $790,000,000) | ||||||
Total Investments | 5,140,172,858 | |||||
(Cost $5,140,172,858)(e) — 104.11% | ||||||
Liabilities in excess of other assets — (4.11)% | (202,722,999 | ) | ||||
NET ASSETS — 100.00% | $ | 4,937,449,859 | ||||
30
SCHEDULE OF PORTFOLIO INVESTMENTS
|
U.S. Government Money Market Fund (cont.)
September 30, 2010 | ||
(a) | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. Security has been deemed to be liquid based on procedures approved by the Board of Trustees. | |
(b) | Represents effective yield to maturity on date of purchase. | |
(c) | Variable rate security. The rate reflected in the Schedule of Portfolio Investments is the rate in effect on September 30, 2010. The maturity date represents the actual maturity date. The security’s effective maturity resets periodically. | |
(d) | This security is restricted and illiquid as the security may not be offered or sold within the United States or to U.S. persons except to qualified purchasers who are also either qualified institutional buyers or “accredited investors” (as defined in Rule 501 (a) of Regulation D under the Securities Act of 1933). | |
The total investment in restricted and illiquid securities representing $200,000,000 or 4.05% of net assets was as follows: |
Acquisition Principal Amount | Issuer | Acquisition Date | Acquisition Cost | 9/30/2010 Carrying Value Per Unit | ||||||||||||
$200,000,000 | Barclays Capital Inc. | 9/8/2010 | $ | 200,000,000 | $ | 100.00 |
(e) | Tax cost of securities is equal to book cost of securities. |
Abbreviations used are defined below:
FDIC - Federal Deposit Insurance Corp.
GO - General Obligation
LOC -Letter of Credit
TLGP - Temporary Liquidity Guaranty Program
See notes to financial statements.
31
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Tax-Free Money Market Fund
September 30, 2010 | ||||||
Principal Amount | Value | |||||
Municipal Bonds — 98.09% | ||||||
Alabama — 0.75% | ||||||
$10,890,000 | Birmingham Waterworks Board Revenue, Series R-10412, 0.28%, 7/1/14, (Credit Support: BHAC, AGM)(a)(b) | $ | 10,890,000 | |||
Arizona — 1.48% | ||||||
3,160,000 | Maricopa County Industrial Development Authority Gran Victoria Housing Revenue, Series A, 0.29%, 4/15/30, (Credit Support: Fannie Mae)(b) | 3,160,000 | ||||
5,300,000 | Maricopa County Industrial Development Authority Valley of the Sun YMCA Refunding Revenue, 0.32%, 12/1/37, (LOC: U.S. Bank NA)(b) | 5,300,000 | ||||
5,800,000 | Pima County Industrial Development Authority Delaware Military Academy Revenue, 0.27%, 9/1/38, (LOC: PNC Bank NA)(b) | 5,800,000 | ||||
7,375,000 | Tempe Industrial Development Authority Revenue, Series C, 0.30%, 12/1/27, (LOC: Banco Santander)(b) | 7,375,000 | ||||
21,635,000 | ||||||
California — 3.45% | ||||||
6,860,000 | California Statewide Communities Development Authority Refunding Revenue, Series R-11553, 0.29%, 11/15/32, (Credit Support: BHAC)(b) | 6,860,000 | ||||
10,000,000 | City of Modesto Refunding COP, Series A, 0.24%, 10/1/36, (Credit Support: Assured GTY)(b) | 10,000,000 | ||||
12,450,000 | Eclipse Funding Trust Tax Allocation Refunding Revenue, 0.30%, 2/1/15, (LOC: U.S. Bank NA)(b) | 12,450,000 | ||||
780,000 | Hesperia Public Financing Authority Refunding Revenue, Series B, 0.80%, 6/1/22, (LOC: Bank of America NA)(b) | 780,000 | ||||
5,800,000 | Padre Dam Municipal Water District Refunding COP, Series R-11792, 0.27%, 4/1/17(a)(b) | 5,800,000 | ||||
11,915,000 | San Diego Housing Authority, Hillside Garden Apartments Revenue, Series C, 0.26%, 1/15/35, (Credit Support: Fannie Mae)(b) | 11,915,000 | ||||
2,500,000 | State of California Floaters Refunding GO, Series 1707, 0.37%, 8/1/32, (Credit Support: AGM)(b) | 2,500,000 | ||||
50,305,000 | ||||||
Colorado — 2.65% | ||||||
3,170,000 | Aurora Centretech Metropolitan District Refunding GO, Series C, 0.28%, 12/1/28, (LOC: U.S. Bank NA)(b) | 3,170,000 | ||||
6,510,000 | Base Village Metropolitan District No. 2 GO, Series B, 0.28%, 12/1/38, (LOC: U.S. Bank NA)(b) | 6,510,000 | ||||
1,250,000 | Colorado Health Facilities Authority Revenue, Series A, 0.37%, 4/1/24, (LOC: Wells Fargo Bank)(b) | 1,250,000 | ||||
3,000,000 | Colorado Housing & Finance Authority Refunding Revenue, 0.28%, 2/15/28, (Credit Support: Fannie Mae)(b) | 3,000,000 | ||||
5,000,000 | Commerce City Northern Infrastructure General Improvement District GO, 0.28%, 12/1/28, (LOC: U.S. Bank NA)(b) | 5,000,000 | ||||
3,475,000 | County of Pitkin Refunding Revenue, Series A, 0.29%, 12/1/24, (LOC: U.S. Bank NA)(b) | 3,475,000 |
32
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Tax-Free Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
$5,200,000 | Gateway Regional Metropolitan District Refunding GO, 0.37%, 12/1/37, (LOC: Wells Fargo Bank)(b) | $ | 5,200,000 | |||
2,880,000 | Meridian Ranch Metropolitan District Refunding GO, 0.28%, 12/1/38, (LOC: U.S. Bank NA)(b) | 2,880,000 | ||||
1,685,000 | Parker Automotive Metropolitan District GO, 0.28%, 12/1/34, (LOC: U.S. Bank NA)(b) | 1,685,000 | ||||
1,370,000 | University of Colorado Hospital Authority Revenue, Series A, 0.33%, 11/15/33, (Credit Support: AGM)(b) | 1,370,000 | ||||
5,180,000 | Water Valley Metropolitan District No. 2 GO, 0.37%, 12/1/24, (LOC: Wells Fargo Bank)(b) | 5,180,000 | ||||
38,720,000 | ||||||
Connecticut — 0.21% | ||||||
3,117,000 | Northeast Tax-Exempt Bond Grantor Trust Revenue, 0.33%, 4/1/19, (LOC: PNC Bank NA)(b) | 3,117,000 | ||||
District Of Columbia — 1.65% | ||||||
4,440,000 | District of Columbia Children’s Defense Fund Refunding Revenue, 0.38%, 4/1/22, (LOC: Wells Fargo Bank)(b) | 4,440,000 | ||||
1,700,000 | District of Columbia Internships and Academic Revenue, 0.27%, 7/1/36, (LOC: Branch Banking & Trust)(b) | 1,700,000 | ||||
4,600,000 | District of Columbia Jesuit Conference Revenue, 0.28%, 10/1/37, (LOC: PNC Bank NA)(b) | 4,600,000 | ||||
3,980,000 | District of Columbia Water & Sewer Authority Refunding Revenue, Putters Series 3022, 0.32%, 4/1/16, (Credit Support: Assured GTY)(b) | 3,980,000 | ||||
9,360,000 | District of Columbia Water & Sewer Authority Refunding Revenue, Series R-11623, 0.28%, 4/1/29, (Credit Support: Assured GTY), Callable 10/1/18 @ 100(a)(b) | 9,360,000 | ||||
24,080,000 | ||||||
Florida — 4.12% | ||||||
2,635,000 | Collier County Industrial Development Authority Revenue, 0.55%, 12/1/26, (LOC: Bank of America NA)(b) | 2,635,000 | ||||
8,100,000 | County of Broward Educational Facilities Authority, Southeastern University Revenue, Series A, 0.32%, 4/1/38, (LOC: Bank of America NA)(b) | 8,100,000 | ||||
15,000,000 | County of Palm Beach Pine Crest Preparatory Refunding Revenue, 0.32%, 6/1/38, (LOC: Bank of America NA)(b) | 15,000,000 | ||||
1,280,000 | Florida Housing Finance Corp. Refunding Revenue, Series I, 0.26%, 11/1/32, (Credit Support: Freddie Mac)(b) | 1,280,000 | ||||
5,245,000 | JP Morgan Chase Putters/Drivers Trust Seminole County Sales Tax Refunding Revenue, Series 3438Z, 0.32%, 4/1/27(a)(b) | 5,245,000 | ||||
2,225,000 | JP Morgan Chase Putters/Drivers Trust Tampa Water Revenue, Series 3617, 0.32%, 10/1/25(a)(b) | 2,225,000 | ||||
6,835,000 | Marion County Industrial Development Authority Refunding Revenue, 0.27%, 11/15/32, (Credit Support: Fannie Mae)(b) | 6,835,000 | ||||
5,055,000 | Miami-Dade County Industrial Development Authority Revenue, 0.34%, 9/1/29, (LOC: Bank of America NA)(b) | 5,055,000 | ||||
8,815,000 | Orange County Housing Finance Authority Refunding Revenue, 0.32%, 6/1/25, (Credit Support: Fannie Mae)(b) | 8,815,000 |
33
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Tax-Free Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
$ 4,995,000 | Tallahassee Energy System Revenue, Putters, 0.32%, 4/1/15(b) | $ | 4,995,000 | |||
60,185,000 | ||||||
Georgia — 2.09% | ||||||
7,215,000 | Clayton County Housing Authority Refunding Revenue, 0.27%, 9/1/26, (Credit Support: Fannie Mae)(b) | 7,215,000 | ||||
4,755,000 | Cobb County Housing Authority Refunding Revenue, 0.32%, 3/1/24, (Credit Support: Freddie Mac)(b) | 4,755,000 | ||||
7,390,000 | Fulton County Development Authority Revenue, 0.32%, 4/1/34, (LOC: Bank of America NA)(b) | 7,390,000 | ||||
2,800,000 | Gainesville & Hall County Development Authority Refunding Revenue, 0.32%, 4/1/27, (Credit Support: County GTY), (LOC: Bank of America NA)(b) | 2,800,000 | ||||
8,325,000 | Marietta Housing Authority Refunding Revenue, 0.27%, 7/1/24, (Credit Support: Fannie Mae)(b) | 8,325,000 | ||||
30,485,000 | ||||||
Illinois — 7.32% | ||||||
20,580,000 | City of Chicago GO, Series R-11270, 0.28%, 7/1/15(b) | 20,580,000 | ||||
11,500,000 | City of Galesburg Refunding Revenue, 0.32%, 3/1/31, (LOC: Bank of America NA)(b) | 11,500,000 | ||||
2,700,000 | City of Galesburg Revenue, 0.27%, 7/1/24, (LOC: Bank of America NA)(b) | 2,700,000 | ||||
7,400,000 | Illinois Development Finance Authority YMCA Metro Chicago Project Refunding Revenue, 0.27%, 6/1/29, (LOC: JP Morgan Chase Bank)(b) | 7,400,000 | ||||
4,100,000 | Illinois Finance Authority Cultural Pool Revenue, 0.34%, 12/1/25, (LOC: JP Morgan Chase Bank)(b) | 4,100,000 | ||||
11,545,000 | Illinois Finance Authority Dominican University Revenue, 0.27%, 3/1/36, (LOC: JP Morgan Chase Bank)(b) | 11,545,000 | ||||
1,280,000 | Illinois Finance Authority Radiological Society Project Revenue, 0.27%, 6/1/17, (LOC: JP Morgan Chase Bank)(b) | 1,280,000 | ||||
4,995,000 | Illinois Finance Authority Revenue, Putters Series 2967, 0.32%, 2/15/16, (Credit Support: Assured GTY)(b) | 4,995,000 | ||||
16,100,000 | Illinois Finance Authority Revenue, Series R-11624, 0.29%, 8/15/39, (Credit Support: Assured GTY), Callable 8/15/18 @ 100(a)(b) | 16,100,000 | ||||
6,850,000 | Illinois Finance Authority, Beloit Memorial Hospital, Inc. Revenue, Series A, 0.34%, 4/1/36, (LOC: JP Morgan Chase Bank)(b) | 6,850,000 | ||||
4,000,000 | Illinois Health Facilities Authority Revenue, Series C, 0.27%, 1/1/16, (LOC: JP Morgan Chase Bank)(b) | 4,000,000 | ||||
9,900,000 | State of Illinois Transit Improvement GO, Series R-10379, 0.30%, 2/1/11, (Credit Support: AGM)(a)(b) | 9,900,000 | ||||
3,085,000 | Village of Channahon Refunding Revenue, Series D, 0.28%, 12/1/32, (LOC: U.S. Bank NA)(b) | 3,085,000 | ||||
2,780,000 | Village of Channahon Revenue, Series A, 0.28%, 12/1/34, (LOC: U.S. Bank NA)(b) | 2,780,000 | ||||
106,815,000 | ||||||
34
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Tax-Free Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
Indiana — 4.61% | ||||||
$ 7,040,000 | City of Fort Wayne Waterworks Refunding Revenue, 0.60%, 2/10/11 | $ | 7,040,000 | |||
20,420,000 | Indiana Bond Bank Revenue, Series A, 2.00%, 1/6/11, (LOC: JP Morgan Chase Bank) | 20,504,773 | ||||
16,365,000 | Indiana Finance Authority Refunding Revenue, 0.27%, 7/1/36, (LOC: Harris Bank)(b) | 16,365,000 | ||||
14,815,000 | Indiana Finance Authority Refunding Revenue, 0.33%, 3/1/36, (LOC: Branch Banking & Trust)(b) | 14,815,000 | ||||
8,540,000 | Indiana Health Facility Financing Authority Revenue, Series A, 0.32%, 7/1/28, (LOC: Bank of America NA)(b) | 8,540,000 | ||||
67,264,773 | ||||||
Iowa — 1.99% | ||||||
6,000,000 | City of Urbandale Interstate Acres LP Refunding Revenue, 0.29%, 12/1/14, (LOC: Federal Home Loan Bank)(b) | 6,000,000 | ||||
2,940,000 | Iowa Finance Authority Revenue, 0.27%, 2/1/23, (LOC: Wells Fargo Bank)(b) | 2,940,000 | ||||
1,785,000 | Iowa Finance Authority Revenue, 0.50%, 4/1/25, (LOC: Bank of America NA)(b) | 1,785,000 | ||||
7,870,000 | Iowa Higher Education Loan Authority Revenue, 0.37%, 5/1/20, (LOC: Wells Fargo Bank)(b) | 7,870,000 | ||||
8,325,000 | Iowa Higher Education Loan Authority Revenue, 0.50%, 4/1/27, (LOC: Bank of America NA)(b) | 8,325,000 | ||||
2,150,000 | Woodbury County Revenue, 0.37%, 11/1/16, (LOC: U.S. Bank NA)(b) | 2,150,000 | ||||
29,070,000 | ||||||
Kansas — 1.25% | ||||||
3,215,000 | City of Olathe Refunding Revenue, Series B, 0.50%, 11/1/18, (LOC: Bank of America NA)(b) | 3,215,000 | ||||
15,000,000 | City of Wichita Water Utility Improvement GO, Series 240, 0.45%, 9/15/11 | 15,006,760 | ||||
18,221,760 | ||||||
Kentucky — 1.00% | ||||||
8,155,000 | County of Warren Refunding Revenue, 0.26%, 4/1/37, (Credit Support: Assured GTY)(b) | 8,155,000 | ||||
6,500,000 | Kentucky Economic Development Finance Authority Revenue, Series R-11810, 0.32%, 6/1/16, (Credit Support: Assured GTY)(a)(b) | 6,500,000 | ||||
14,655,000 | ||||||
Louisiana — 0.89% | ||||||
9,055,000 | Louisiana Local Government Environmental Facilities & Community Development Authority Revenue, Series A, 0.28%, 10/1/37, (LOC: Federal Home Loan Bank)(b) | 9,055,000 | ||||
3,970,000 | Shreveport Home Mortgage Authority Refunding Revenue, 0.27%, 2/15/23, (Credit Support: Fannie Mae)(b) | 3,970,000 | ||||
13,025,000 | ||||||
35
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Tax-Free Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
Massachusetts — 0.86% | ||||||
$10,000,000 | City of New Bedford GO, Series A, 1.75%, 2/11/11 | $ | 10,039,790 | |||
2,575,000 | Massachusetts Health & Educational Facilities Authority Revenue, 0.33%, 7/1/38, (LOC: TD Bank NA)(b) | 2,575,000 | ||||
12,614,790 | ||||||
Michigan — 2.58% | ||||||
5,000,000 | Detroit City School District GO, Putters Series 2954, 0.32%, 11/1/24, (Credit Support: AGM, Q-SBLF)(b) | 5,000,000 | ||||
4,000,000 | Michigan Finance Authority Refunding Revenue, Series D3, 2.00%, 8/22/11, (LOC: Scotia Bank) | 4,056,817 | ||||
8,500,000 | Michigan Finance Authority State Aid Notes, Series D1, 2.00%, 8/19/11 | 8,589,253 | ||||
15,000,000 | Michigan State Hospital Finance Authority Refunding Revenue, 0.27%, 6/1/22, (Credit Support: Assured GTY)(b) | 15,000,000 | ||||
5,010,000 | Michigan Strategic Fund Revenue, 0.50%, 9/1/40, (LOC: Bank of America NA)(b) | 5,010,000 | ||||
37,656,070 | ||||||
Minnesota — 8.40% | ||||||
1,825,000 | City of Bloomington Refunding Revenue, Series A1, 0.32%, 11/15/32, (Credit Support: Fannie Mae)(b) | 1,825,000 | ||||
8,035,000 | City of Burnsville Refunding Revenue, 0.29%, 1/1/35, (Credit Support: Freddie Mac)(b) | 8,035,000 | ||||
12,235,000 | City of Inver Grove Heights Refunding Revenue, 0.29%, 5/15/35, (Credit Support: Fannie Mae)(b) | 12,235,000 | ||||
1,200,000 | City of Minnetonka Refunding Revenue, 0.29%, 11/15/31, (Credit Support: Fannie Mae)(b) | 1,200,000 | ||||
13,505,000 | City of Oak Park Heights Refunding Revenue, 0.29%, 11/1/35, (Credit Support: Freddie Mac)(b) | 13,505,000 | ||||
5,500,000 | City of Robbinsdale Refunding Revenue, Series A2, 0.33%, 5/1/33, (LOC: Wells Fargo Bank)(b) | 5,500,000 | ||||
5,565,000 | City of Saint Louis Park Westwind Apartments Project Refunding Revenue, 0.29%, 9/15/33, (Credit Support: Fannie Mae)(b) | 5,565,000 | ||||
1,240,000 | City of Spring Lake Park Refunding Revenue, 0.29%, 2/15/33, (Credit Support: Fannie Mae)(b) | 1,240,000 | ||||
10,125,000 | Midwest Consortium of Municipal Utilities Refunding Revenue, Series B, 0.27%, 10/1/35, (LOC: U.S. Bank NA)(b) | 10,125,000 | ||||
3,215,000 | Perham Independent School District Number 549 Cash Flow GO, Series A, 1.50%, 9/7/11, (Credit Support: School District Credit Program) | 3,246,388 | ||||
17,000,000 | Rochester Health Care Facilities, TECP, 0.25%, 12/2/10(c) | 17,000,000 | ||||
10,000,000 | Rochester Health Care Facilities, TECP, 0.30%, 12/2/10(c) | 10,000,000 | ||||
6,000,000 | Rochester Health Care Facilities, TECP, 0.32%, 10/19/10(c) | 6,000,000 | ||||
6,250,000 | Saint Francis Independent School District Number 15 Cash Flow GO, Series A, 1.00%, 9/15/11, (Credit Support: School District Credit Program) | 6,285,079 | ||||
2,140,000 | St. Paul Housing & Redevelopment Authority Revenue, Series A, 0.27%, 5/1/27, (LOC: U.S. Bank NA)(b) | 2,140,000 |
36
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Tax-Free Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
$11,700,000 | St. Paul Port Authority Refunding Revenue, Series 9-BB, 0.25%, 3/1/29, (LOC: Deutsche Bank AG)(b) | $ | 11,700,000 | |||
7,035,000 | St. Paul Port Authority Revenue, Series 5-O, 0.25%, 12/1/28, (LOC: Deutsche Bank AG)(b) | 7,035,000 | ||||
122,636,467 | ||||||
Mississippi — 1.06% | ||||||
6,040,000 | Mississippi Business Finance Corp. Gulf Opportunity Zone Revenue, 0.27%, 5/1/39, (LOC: Federal Home Loan Bank)(b) | 6,040,000 | ||||
9,500,000 | Mississippi Business Finance Corp. Petal Gas Storage LLC Project Revenue, 0.27%, 8/1/34, (LOC: Deutsche Bank AG)(b) | 9,500,000 | ||||
15,540,000 | ||||||
Missouri — 1.58% | ||||||
13,600,000 | Missouri State Health & Educational Facilities Authority Refunding Revenue, Series C-4, 0.29%, 6/1/33, (Credit Support: AGM)(b) | 13,600,000 | ||||
7,420,000 | Nodaway County Industrial Development Authority Revenue, 0.27%, 11/1/28, (LOC: U.S. Bank NA)(b) | 7,420,000 | ||||
2,000,000 | St. Charles County Industrial Development Authority Refunding Revenue, 0.27%, 2/1/29, (Credit Support: Fannie Mae)(b) | 2,000,000 | ||||
23,020,000 | ||||||
Montana — 0.18% | ||||||
2,600,000 | City of Forsyth Pollution Control Refunding Revenue, 0.30%, 1/1/18, (LOC: BNP Paribas)(b) | 2,600,000 | ||||
Nebraska — 0.98% | ||||||
6,000,000 | Madison County Hospital Authority No. 1 Revenue, Series B, 0.27%, 7/1/33, (LOC: U.S. Bank NA)(b) | 6,000,000 | ||||
5,570,000 | Saline County Hospital Authority No. 1 Refunding Revenue, Series C, 0.27%, 6/1/31, (LOC: U.S. Bank NA)(b) | 5,570,000 | ||||
2,750,000 | Scotts Bluff County Hospital Authority Refunding Revenue, 0.32%, 12/1/31, (Credit Support: Ginnie Mae), (LOC: U.S. Bank NA)(b) | 2,750,000 | ||||
14,320,000 | ||||||
Nevada — 0.73% | ||||||
5,145,000 | City of Fernley GO, Series R-11458, 0.29%, 2/1/16, (Credit Support: Assured GTY), Callable 2/1/18 @ 100(b) | 5,145,000 | ||||
5,510,000 | City of Reno Refunding Revenue, Series A, 0.27%, 6/1/32, (LOC: Bank of America NA)(b) | 5,510,000 | ||||
10,655,000 | ||||||
New Hampshire — 2.08% | ||||||
22,000,000 | New Hampshire Business Finance Authority Refunding Revenue, 0.29%, 10/1/37, (LOC: TD Bank NA)(b) | 22,000,000 | ||||
8,390,000 | New Hampshire Health & Education Facilities Authority Refunding Revenue, 0.37%, 7/1/28, (LOC: Wells Fargo Bank)(b) | 8,390,000 | ||||
30,390,000 | ||||||
37
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Tax-Free Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
New Jersey — 2.65% | ||||||
$19,195,000 | New Jersey Economic Development Authority Diocese of Metuchen Project Refunding Revenue, 0.24%, 9/1/30, (LOC: Bank of America NA)(b) | $ | 19,195,000 | |||
3,400,000 | New Jersey Economic Development Authority, The Cooper Health System Project Revenue, Series A, 0.22%, 11/1/38, (LOC: TD Bank NA)(b) | 3,400,000 | ||||
9,660,000 | New Jersey Health Care Facilities Financing Authority Refunding Revenue, 0.26%, 7/1/33, (LOC: TD Bank NA)(b) | 9,660,000 | ||||
6,500,000 | New Jersey Health Care Facilities Financing Authority Revenue, Series B, 0.22%, 7/1/41, (LOC: TD Bank NA)(b) | 6,500,000 | ||||
38,755,000 | ||||||
New York — 11.07% | ||||||
11,200,000 | Addison Central School District GO, 1.75%, 1/21/11, (Credit Support: State Aid Withholding) | 11,237,529 | ||||
3,605,000 | Candor Central School District GO, 1.75%, 6/24/11, (Credit Support: State Aid Withholding) | 3,631,062 | ||||
7,200,000 | City of New York GO, Sub-Series A-4, 0.24%, 8/1/31, (LOC: Bank of Nova Scotia)(b) | 7,200,000 | ||||
2,900,000 | Erie County Industrial Development Agency Revenue, Putters Series 2090, 0.30%, 5/1/15, (Credit Support: AGM)(b) | 2,900,000 | ||||
6,900,000 | New York City Industrial Development Agency Refunding Revenue, 0.27%, 6/1/35, (LOC: JP Morgan Chase Bank)(b) | 6,900,000 | ||||
30,000,000 | New York City Industrial Development Agency University & College Improvement Revenue, Series B-1, 0.24%, 7/1/36, (LOC: TD Bank NA)(b) | 30,000,000 | ||||
25,000,000 | New York Liberty Development Corp. World Trade Center Project Revenue, Series A, 0.50%, 12/1/49(b) | 25,003,588 | ||||
4,030,000 | New York State Dormitory Authority Long Island University Refunding Revenue, Series A2, 0.26%, 9/1/36, (Credit Support: Federal Home Loan Bank)(b) | 4,030,000 | ||||
3,640,000 | New York State Dormitory Authority Long Island University Revenue, Series A2, 0.27%, 9/1/26, (Credit Support: Federal Home Loan Bank)(b) | 3,640,000 | ||||
7,000,000 | New York State Dormitory Authority Nursing Home Improvements Revenue, Series A, 0.25%, 11/15/36, (Credit Support: Fannie Mae)(b) | 7,000,000 | ||||
20,000,000 | New York State Dormitory Authority Refunding Revenue, Series D, 0.22%, 7/1/31, (LOC: TD Bank NA)(b) | 20,000,000 | ||||
5,460,000 | New York State Dormitory Authority Wagner College Revenue, 0.26%, 7/1/38, (LOC: TD Bank NA)(b) | 5,460,000 | ||||
27,400,000 | New York State Energy Research & Development Authority Refunding Revenue, Series A, 0.30%, 8/1/15, (LOC: Wells Fargo Bank)(b) | 27,400,000 | ||||
7,200,615 | Windsor Central School District GO, 1.75%, 6/16/11, (Credit Support: State Aid Withholding) | 7,253,650 | ||||
161,655,829 | ||||||
38
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Tax-Free Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
North Carolina — 2.76% | ||||||
$17,700,000 | North Carolina Capital Facilities Finance Agency Refunding Revenue, Series B, 0.27%, 6/1/38, (LOC: Wells Fargo Bank)(b) | $ | 17,700,000 | |||
9,530,000 | North Carolina Capital Facilities Finance Agency Revenue, 0.27%, 8/1/33, (LOC: Wells Fargo Bank)(b) | 9,530,000 | ||||
12,995,000 | North Carolina Municipal Power Agency No. 1 Catawba Revenue, Series R-211, 0.28%, 1/1/11, (Credit Support: BHAC), Callable 1/1/13 @ 100(b) | 12,995,000 | ||||
40,225,000 | ||||||
Ohio — 0.45% | ||||||
6,500,000 | County of Hamilton Nursing Home Improvement Revenue, Series B, 0.25%, 6/1/27, (LOC: PNC Bank NA)(b) | 6,500,000 | ||||
Oregon — 0.68% | ||||||
5,300,000 | Clackamas County Hospital Facility Authority Refunding Revenue, Series A-1, 0.30%, 11/1/29, (LOC: Banco Santander)(b) | 5,300,000 | ||||
4,600,000 | Yamhill County Hospital Authority Refunding Revenue, 0.33%, 12/1/34, (LOC: U.S. Bank NA)(b) | 4,600,000 | ||||
9,900,000 | ||||||
Pennsylvania — 8.30% | ||||||
8,900,000 | Allegheny County Higher Education Building Authority Refunding Revenue, Series A, 0.28%, 3/1/38, (LOC: PNC Bank NA)(b) | 8,900,000 | ||||
7,700,000 | Allegheny County Hospital Development Authority Revenue, Series A, 0.28%, 6/1/30, (LOC: PNC Bank NA)(b) | 7,700,000 | ||||
5,035,000 | Allegheny County Industrial Development Authority Revenue, 0.28%, 6/1/38, (LOC: PNC Bank NA)(b) | 5,035,000 | ||||
6,875,000 | Bucks County Industrial Development Authority Revenue, Series A, 0.22%, 7/1/34, (LOC: TD Bank)(b) | 6,875,000 | ||||
1,875,000 | Butler County General Authority Refunding Revenue, 0.32%, 11/15/21, (Credit Support: AGM)(b) | 1,875,000 | ||||
5,000,000 | Delaware County Industrial Development Authority General Electric Capital Refunding Revenue, Series G, 0.28%, 12/1/31(b) | 5,000,000 | ||||
5,000,000 | Delaware County Industrial Development Authority General Electric Capital Refunding Revenue, Series G, 0.28%, 12/1/31(b) | 5,000,000 | ||||
3,100,000 | Emmaus General Authority Revenue, Series A11, 0.30%, 3/1/24, (LOC: U.S. Bank NA)(b) | 3,100,000 | ||||
4,700,000 | Emmaus General Authority Revenue, Series F, 0.30%, 3/1/24, (LOC: U.S. Bank NA)(b) | 4,700,000 | ||||
8,155,000 | JP Morgan Chase Putters/Drivers Trust Refunding GO, Series 3405, 0.30%, 11/15/14, (Credit Support: AGM, State Aid Withholding)(a)(b) | 8,155,000 | ||||
7,500,000 | Lancaster Industrial Development Authority Revenue, Series B, 0.25%, 12/1/39, (LOC: PNC Bank NA)(b) | 7,500,000 | ||||
7,855,000 | Luzerne County Convention Center Authority Revenue, Series A, 0.28%, 9/1/28, (LOC: PNC Bank NA)(b) | 7,855,000 | ||||
7,600,000 | Pennsylvania Higher Educational Facilties Authority Refunding Revenue, 0.24%, 12/1/32, (LOC: TD Bank NA)(b) | 7,600,000 |
39
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Tax-Free Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
$2,970,000 | Pennsylvania State Public School Building Authority Revenue, Putters-Series 1970, 0.30%, 12/1/14, (Credit Support: AGM, State Aid Withholding)(b) | $ | 2,970,000 | |||
7,800,000 | Philadelphia Authority for Industrial Development Revenue, 0.37%, 12/1/37, (LOC: Wells Fargo Bank)(b) | 7,800,000 | ||||
2,480,000 | Shaler Area School District Refunding GO, 0.32%, 9/1/25, (Credit Support: AGM, State Aid Withholding)(b) | 2,480,000 | ||||
20,000,000 | Southeastern Pennsylvania Transportation Authority Refunding Revenue, 0.25%, 3/1/22, (LOC: PNC Bank NA)(b) | 20,000,000 | ||||
8,695,000 | York County Industrial Development Authority Refunding Revenue, 0.27%, 7/1/37, (LOC: PNC Bank NA)(b) | 8,695,000 | ||||
121,240,000 | ||||||
Rhode Island — 0.59% | ||||||
3,140,000 | Rhode Island Health & Educational Building Corp. Refunding Revenue, 0.55%, 6/1/37, (LOC: Bank of America NA)(b) | 3,140,000 | ||||
5,500,000 | Rhode Island Health & Educational Building Corp. Revenue, Series R-11811, 0.29%, 5/15/17, (Credit Support: Assured GTY)(a)(b) | 5,500,000 | ||||
8,640,000 | ||||||
South Carolina — 1.66% | ||||||
6,500,000 | County of Cherokee Revenue, 0.50%, 12/1/15, (LOC: Bank of America NA)(b) | 6,500,000 | ||||
5,900,000 | South Carolina Jobs-Economic Development Authority Revenue, 0.37%, 5/1/29, (LOC: Wells Fargo Bank)(b) | 5,900,000 | ||||
6,735,000 | St Peters Parish-Jasper County Public Facilities Corp. Refunding Revenue, Series A, 0.75%, 2/1/11 | 6,735,000 | ||||
5,100,000 | St Peters Parish-Jasper County Public Facilities Corp. Refunding Revenue, Series A, 1.50%, 7/1/11 | 5,122,658 | ||||
24,257,658 | ||||||
South Dakota — 0.87% | ||||||
12,640,000 | City of Sioux Falls Sales Tax Revenue, Series 2057, 0.32%, 5/15/15(b) | 12,640,000 | ||||
Tennessee — 0.48% | ||||||
2,000,000 | Hendersonville Industrial Development Board Refunding Revenue, 0.30%, 2/15/28, (Credit Support: Fannie Mae)(b) | 2,000,000 | ||||
5,000,000 | Montgomery County Public Building Authority Public Improvement Revenue, 0.32%, 7/1/38, (LOC: Bank of America NA)(b) | 5,000,000 | ||||
7,000,000 | ||||||
Texas — 4.18% | ||||||
3,000,000 | Crawford Education Facilities Corp. Revenue, 0.29%, 6/1/18, (LOC: U.S. Bank NA)(b) | 3,000,000 | ||||
7,050,000 | DeSoto Industrial Development Authority Caterpillar Refunding Revenue, 0.37%, 12/1/16(b) | 7,050,000 | ||||
1,745,000 | El Paso County Hospital District GO, Putters Series 2747, 0.32%, 2/15/16, (Credit Support: Assured GTY)(b) | 1,745,000 |
40
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Tax-Free Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
$9,000,000 | Harris County Cultural Educational Facilities TECP, 0.36%, 10/20/10(c) | $ | 9,000,000 | |||
8,000,000 | Harris County Cultural Educational Facilities TECP, 0.43%, 12/8/10(c) | 8,000,000 | ||||
4,075,000 | Harris County Hospital District Refunding Revenue, Series R-12075, 0.28%, 8/15/15, (Credit Support: BHAC)(b) | 4,075,000 | ||||
4,290,000 | JP Morgan Chase Putters/Drivers Trust GO, Series 3563, 0.27%, 4/1/15, (Credit Support: AGM)(a)(b) | 4,290,000 | ||||
3,505,000 | JP Morgan Chase Putters/Drivers Trust Houston Community College GO, Series 3356, 0.32%, 2/15/12(a)(b) | 3,505,000 | ||||
5,000,000 | North Texas Tollway Authority Refunding Revenue, Series R-11392, 0.28%, 1/1/16, (Credit Support: BHAC)(b) | 5,000,000 | ||||
5,280,000 | Splendora Higher Education Facilities Corp. Revenue, Series A, 0.37%, 12/1/26, (LOC: Wells Fargo Bank)(b) | 5,280,000 | ||||
10,000,000 | State of Texas Cash Flow Management Revenue, 2.00%, 8/31/11 | 10,149,234 | ||||
61,094,234 | ||||||
Utah — 2.02% | ||||||
5,000,000 | County of Emery Refunding Revenue, 0.28%, 11/1/24, (LOC: Wells Fargo Bank)(b) | 5,000,000 | ||||
720,000 | County of Sanpete Revenue, 0.37%, 8/1/28, (LOC: U.S. Bank NA)(b) | 720,000 | ||||
3,700,000 | Duchesne County School District Revenue, 0.37%, 6/1/21, (LOC: U.S. Bank NA)(b) | 3,700,000 | ||||
4,744,000 | Jordanelle Special Service District Refunding Revenue, 0.27%, 9/1/25, (LOC: Wells Fargo Bank)(b) | 4,744,000 | ||||
3,595,000 | Ogden City Redevelopment Agency Tax Allocation Revenue, Series A, 0.37%, 4/1/25, (LOC: Wells Fargo Bank)(b) | 3,595,000 | ||||
7,220,000 | Salt Lake County Granite School District GO, 3.00%, 6/1/11, (Credit Support: School Board GTY) | 7,339,888 | ||||
4,435,000 | Salt Lake County Housing Authority Refunding Revenue, 0.30%, 2/15/31, (Credit Support: Fannie Mae)(b) | 4,435,000 | ||||
29,533,888 | ||||||
Vermont — 0.66% | ||||||
9,700,000 | Vermont Educational & Health Buildings Financing Agency Norwich University Project Refunding Revenue, 0.26%, 9/1/38, (LOC: TD Bank NA)(b) | 9,700,000 | ||||
Virginia — 0.98% | ||||||
7,485,000 | JP Morgan Chase Putters/Drivers Trust Virginia Housing Development Authority Revenue, Series 3313Z, 0.32%, 1/1/31, Callable 7/01/11 @ 100(b) | 7,485,000 | ||||
6,755,000 | Virginia Beach Development Authority Refunding Revenue, 0.32%, 7/1/33, (LOC: Bank of America NA)(b) | 6,755,000 | ||||
14,240,000 | ||||||
Washington — 2.17% | ||||||
10,000,000 | City of Seattle Refunding Revenue, Series R-47, 0.27%, 3/2/21, (Credit Support: AGM)(b) | 10,000,000 |
41
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Tax-Free Money Market Fund (cont.)
September 30, 2010 | ||||||
Principal Amount | Value | |||||
$ 5,995,000 | City of Seattle Refunding Revenue, Series R-48, 0.27%, 9/2/20, (Credit Support: AGM)(b) | $ | 5,995,000 | |||
4,995,000 | JP Morgan Chase Putters/Drivers Trust Snohomish County School District No. 15 GO, Series 3542Z, 0.32%, 12/1/14, (Credit Support: School Board GTY)(a)(b) | 4,995,000 | ||||
6,630,000 | Washington Health Care Facilities Authority Revenue, 0.50%, 8/1/26, (LOC: Bank of America NA)(b) | 6,630,000 | ||||
130,000 | Washington State Housing Finance Commission Refunding Revenue, Series B, 0.29%, 7/1/11, (LOC: U.S. Bank NA)(b) | 130,000 | ||||
3,000,000 | Washington State Housing Finance Commission Revenue, 0.27%, 10/1/29, (LOC: Wells Fargo Bank)(b) | 3,000,000 | ||||
1,000,000 | Washington State Housing Finance Commission Revenue, 0.29%, 7/1/22, (LOC: U.S. Bank NA)(b) | 1,000,000 | ||||
31,750,000 | ||||||
Wisconsin — 6.66% | ||||||
20,000,000 | City of Milwaukee Cash Flow Management GO, Series R4, 1.50%, 12/15/10 | 20,046,168 | ||||
4,000,000 | Jefferson School District GO, 1.80%, 6/1/11 | 4,008,676 | ||||
15,020,000 | Marshfield Electric Revenue, Series C, 4.00%, 12/1/10 | 15,107,872 | ||||
5,800,000 | Menomonie Area School District Cash Flow Management Revenue, 1.25%, 8/26/11 | 5,839,068 | ||||
7,300,000 | Mequon & Thiensville School District Revenue, 1.50%, 9/2/11 | 7,366,783 | ||||
2,635,000 | Milwaukee Redevelopment Authority Revenue, 0.27%, 9/1/40, (LOC: U.S. Bank NA)(b) | 2,635,000 | ||||
7,250,000 | New Richmond School District Revenue, Series B, 1.75%, 5/10/11 | 7,269,908 | ||||
10,375,000 | Wisconsin Health & Educational Facilities Authority Refunding Revenue, Series B, 0.33%, 12/1/26, (LOC: U.S. Bank NA)(b) | 10,375,000 | ||||
6,000,000 | Wisconsin Health & Educational Facilities Authority Revenue, Series A, 0.33%, 8/1/30, (LOC: U.S. Bank NA)(b) | 6,000,000 | ||||
8,000,000 | Wisconsin Health & Educational Facilities Authority Revenue, Series C, 0.31%, 4/1/28, (LOC: U.S. Bank NA)(b) | 8,000,000 | ||||
2,170,000 | Wisconsin Municipalities Private School Finance Commission Revenue, 0.29%, 3/1/23, (LOC: U.S. Bank NA)(b) | 2,170,000 | ||||
8,440,000 | Wisconsin State Health & Educational Facilities Authority Revenue, 0.37%, 6/1/28, (LOC: Wells Fargo Bank)(b) | 8,440,000 | ||||
97,258,475 | ||||||
Total Municipal Bonds | 1,432,290,944 | |||||
(Cost $1,432,290,944) |
42
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Tax-Free Money Market Fund (cont.)
September 30, 2010 | ||||||
Shares | Value | |||||
Investment Company — 1.03% | ||||||
15,000,000 | Goldman Sachs Financial Square Tax Free Money Market Fund | $15,000,000 | ||||
Total Investment Company | 15,000,000 | |||||
(Cost $15,000,000) | ||||||
Total Investments | 1,447,290,944 | |||||
(Cost $1,447,290,944)(d) — 99.12% | ||||||
Other assets in excess of liabilities — 0.88% | 12,876,777 | |||||
NET ASSETS — 100.00% | $ | 1,460,167,721 | ||||
(a) | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. Security has been deemed to be liquid based on procedures approved by the Board of Trustees. |
(b) | Variable rate security. The rate reflected in the Schedule of Portfolio Investments is the rate in effect on September 30, 2010. The maturity date represents the actual maturity date. The security’s effective maturity resets periodically. |
(c) | Represents effective yield to maturity on date of purchase. |
(d) | Tax cost of securities is equal to book cost of securities. |
Abbreviations used are defined below:
AGM – Assured Guaranty Municipal
BHAC - Berkshire Hathaway Assurance Corp.
COP - - Certificate of Participation
GO – General Obligation
GTY - Guaranty
LOC – Letter of Credit
Q-SBLF – Qualified School Board Loan Fund
TECP – Tax Exempt Commercial Paper
See notes to financial statements.
43
|
Statements of Assets and Liabilities
September 30, 2010
Prime Money Market Fund | U.S. Government Money Market Fund | Tax-Free Money Market Fund | ||||||||||
Assets: | ||||||||||||
Investments, at value (cost $15,970,428,836; $5,140,172,858; $1,447,290,944 respectively) | $15,970,428,836* | $5,140,172,858** | $1,447,290,944 | |||||||||
Cash | 18,888,966 | 5,345,319 | 16,619,226 | |||||||||
Interest and dividends receivable | 18,462,743 | 6,392,079 | 1,698,884 | |||||||||
Prepaid expenses and other assets | 345,310 | 135,405 | 82,298 | |||||||||
Total Assets | 16,008,125,855 | 5,152,045,661 | 1,465,691,352 | |||||||||
Liabilities: | ||||||||||||
Distributions payable | 172,009 | 20,320 | — | |||||||||
Payable for investments purchased | 390,894,362 | 213,206,914 | 5,083,815 | |||||||||
Accrued expenses and other payables: | ||||||||||||
Investment advisory fees | 1,187,872 | 428,408 | 122,538 | |||||||||
Audit fees | 41,285 | 37,778 | 36,550 | |||||||||
Trustee fees | 9,091 | 2,353 | 710 | |||||||||
Distribution fees | 2,080,612 | 561,551 | 207,972 | |||||||||
Shareholder reports | 787,161 | 223,100 | 36,342 | |||||||||
Shareholder servicing fees | 115,607 | 37,453 | 2,969 | |||||||||
Transfer Agent fees | 27,221 | 11,627 | 11,353 | |||||||||
Other | 180,394 | 66,298 | 21,382 | |||||||||
Total Liabilities | 395,495,614 | 214,595,802 | 5,523,631 | |||||||||
Net Assets | $ 15,612,630,241 | $ 4,937,449,859 | $1,460,167,721 | |||||||||
Net Assets Consist Of: | ||||||||||||
Capital | $ 15,617,345,089 | $ 4,937,478,749 | $1,460,095,922 | |||||||||
Undistributed (distributions in excess of) net investment income | (1,031 | ) | 3,717 | — | ||||||||
Accumulated net realized gains (losses) from investment transactions | (4,713,817 | ) | (32,607 | ) | 71,799 | |||||||
Net Assets | $ 15,612,630,241 | $ 4,937,449,859 | $1,460,167,721 | |||||||||
Net Assets: | ||||||||||||
RBC Institutional Class 1 | $ 4,050,508,371 | $ 661,776,031 | $ 70,881,960 | |||||||||
RBC Institutional Class 2 | 830,111,757 | 124,242,507 | 281,796,854 | |||||||||
RBC Investor Class | 3,994,833,266 | 1,260,482,802 | 209,568,478 | |||||||||
RBC Reserve Class | 5,165,084,275 | 1,751,640,699 | 612,235,506 | |||||||||
RBC Select Class | 1,572,092,572 | 1,139,307,820 | 285,684,923 | |||||||||
Total | $ 15,612,630,241 | $ 4,937,449,859 | $1,460,167,721 | |||||||||
44
FINANCIAL STATEMENTS
|
Statements of Assets and Liabilities (cont.)
September 30, 2010
Prime Money Market Fund | U.S. Government Money Market Fund | Tax-Free Money Market Fund | ||||||||||
Shares Outstanding (Unlimited number of shares authorized, no par value): | ||||||||||||
RBC Institutional Class 1 | 4,050,486,157 | 661,762,224 | 70,892,385 | |||||||||
RBC Institutional Class 2 | 830,106,206 | 124,241,211 | 281,852,178 | |||||||||
RBC Investor Class | 3,996,926,570 | 1,260,503,458 | 209,549,908 | |||||||||
RBC Reserve Class | 5,167,260,404 | 1,751,675,336 | 612,188,529 | |||||||||
RBC Select Class | 1,572,685,719 | 1,139,330,907 | 285,659,672 | |||||||||
Total | 15,617,465,056 | 4,937,513,136 | 1,460,142,672 | |||||||||
Net Asset Values and Redemption Price per Share: | ||||||||||||
RBC Institutional Class 1 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||
RBC Institutional Class 2 | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||
RBC Investor Class | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||
RBC Reserve Class | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||
RBC Select Class | $ | 1.00 | $ | 1.00 | $ | 1.00 | ||||||
* | $2,605,500,000 of which are repurchase agreements. See Schedule of Portfolio Investments for details. |
** | $790,000,000 of which are repurchase agreements. See Schedule of Portfolio Investments for details. |
See notes to financial statements.
45
FINANCIAL STATEMENTS
|
For the Year Ended September 30, 2010
Prime Money Market Fund | U.S. Government Money Market Fund | Tax-Free Money Market Fund | ||||||||||
Investment Income: | ||||||||||||
Interest income | $ | 61,925,576 | $ | 15,653,226 | $ | 5,719,722 | ||||||
Dividend income | 418,100 | 10,560 | 46,682 | |||||||||
Total Investment Income | 62,343,676 | 15,663,786 | 5,766,404 | |||||||||
Expenses: | ||||||||||||
Investment advisory fees | 17,380,554 | 5,558,233 | 1,415,684 | |||||||||
Distribution fees-RBC Institutional Class 2 | 1,132,034 | 85,802 | 375,153 | |||||||||
Distribution fees-RBC Investor Class | 42,431,776 | 13,600,745 | 2,237,236 | |||||||||
Distribution fees-RBC Reserve Class | 45,756,748 | 15,553,319 | 4,639,209 | |||||||||
Distribution fees-RBC Select Class | 12,514,320 | 9,449,161 | 2,320,843 | |||||||||
Shareholder servicing fee-RBC Institutional Class 1 | 2,867,157 | 615,833 | 68,143 | |||||||||
Accounting fees | 869,028 | 277,912 | 70,784 | |||||||||
Audit fees | 61,071 | 33,077 | 32,186 | |||||||||
Custodian fees | 216,995 | 81,620 | 20,093 | |||||||||
Insurance fees | 160,585 | 57,472 | 11,767 | |||||||||
Legal fees | 382,093 | 134,322 | 27,626 | |||||||||
Registration and filing fees | 385,103 | 224,776 | 194,659 | |||||||||
Shareholder reports | 1,629,913 | 407,099 | 67,693 | |||||||||
Transfer agent fees | 215,868 | 66,053 | 43,101 | |||||||||
Trustees’ fees | 313,089 | 101,137 | 25,511 | |||||||||
Other fees | 362,362 | 161,969 | 34,159 | |||||||||
Total expenses before fee reductions | 126,678,696 | 46,408,530 | 11,583,847 | |||||||||
Expenses reduced by: | ||||||||||||
Distributor - Class Specific | (76,652,847 | ) | (32,490,723 | ) | (6,455,116 | ) | ||||||
Net Expenses | 50,025,849 | 13,917,807 | 5,128,731 | |||||||||
Net Investment Income | 12,317,827 | 1,745,979 | 637,673 | |||||||||
Realized/Unrealized Gains (Losses) from Investment Transactions: | ||||||||||||
Net realized gains (losses) from investment transactions | 27,903 | (24,157 | ) | 82,268 | ||||||||
Change in net assets resulting from operations | $ | 12,345,730 | $ | 1,721,822 | $ | 719,941 | ||||||
See notes to financial statements.
46
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets
Prime Money Market Fund | ||||||||
For the Year Ended September 30, 2010 | For the Year Ended September 30, 2009 | |||||||
From Investment Activities: | ||||||||
Operations: | ||||||||
Net investment income | $ | 12,317,827 | $ | 50,859,576 | ||||
Net realized gains from investment transactions | 27,903 | 69,009 | ||||||
Net change in unrealized appreciation on investments | — | 14,844,247 | ||||||
Change in net assets resulting from operations | 12,345,730 | 65,772,832 | ||||||
Distributions from Net Investment Income | ||||||||
RBC Institutional Class 1 Shareholders | (10,667,327 | ) | (30,891,053 | ) | ||||
RBC Institutional Class 2 Shareholders | (560,839 | ) | (23,212 | ) | ||||
RBC Investor Class Shareholders | (424,583 | ) | (6,340,573 | ) | ||||
RBC Reserve Class Shareholders | (508,693 | ) | (10,119,679 | ) | ||||
RBC Select Class Shareholders | (156,498 | ) | (3,485,059 | ) | ||||
Change in net assets resulting from shareholder distributions | (12,317,940 | ) | (50,859,576 | ) | ||||
Capital Transactions: | ||||||||
Proceeds from shares issued | 74,870,072,315 | 45,303,434,752 | ||||||
Distributions reinvested | 6,702,565 | 48,514,598 | ||||||
Cost of shares redeemed | (74,621,293,370 | ) | (40,600,609,712 | ) | ||||
Change in net assets resulting from capital transactions | 255,481,510 | 4,751,339,638 | ||||||
Net increase in net assets | 255,509,300 | 4,766,252,894 | ||||||
Net Assets: | ||||||||
Beginning of year | 15,357,120,941 | 10,590,868,047 | ||||||
End of year | $ | 15,612,630,241 | $ | 15,357,120,941 | ||||
Distributions in excess of net investment income | $ | (1,031 | ) | $ | (918 | ) | ||
Share Transactions: | ||||||||
Issued | 74,870,072,315 | 45,303,434,752 | ||||||
Reinvested | 6,702,565 | 48,514,598 | ||||||
Redeemed | (74,621,293,370 | ) | (40,600,609,712 | ) | ||||
Change in shares resulting from capital transactions | 255,481,510 | 4,751,339,638 | ||||||
See notes to financial statements.
47
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets (cont.)
U.S. Government Money Market Fund | ||||||||
For the Year Ended September 30, 2010 | For the Year Ended September 30, 2009 | |||||||
From Investment Activities: | ||||||||
Operations: | ||||||||
Net investment income | $ | 1,745,979 | $ | 13,093,151 | ||||
Net realized losses from investment transactions | (24,157 | ) | (7,011 | ) | ||||
Change in net assets resulting from operations | 1,721,822 | 13,086,140 | ||||||
Distributions from Net Investment Income | ||||||||
RBC Institutional Class 1 Shareholders | (1,305,230 | ) | (7,864,168 | ) | ||||
RBC Institutional Class 2 Shareholders | (13,758 | ) | (123,498 | ) | ||||
RBC Investor Class Shareholders | (136,027 | ) | (812,604 | ) | ||||
RBC Reserve Class Shareholders | (172,829 | ) | (2,280,321 | ) | ||||
RBC Select Class Shareholders | (118,137 | ) | (2,012,560 | ) | ||||
Change in net assets resulting from shareholder distributions | (1,745,981 | ) | (13,093,151 | ) | ||||
Capital Transactions: | ||||||||
Proceeds from shares issued | 16,226,059,737 | 13,869,654,342 | ||||||
Distributions reinvested | 762,532 | 12,324,595 | ||||||
Cost of shares redeemed | (16,471,038,573 | ) | (11,966,466,424 | ) | ||||
Change in net assets resulting from capital transactions | (244,216,304 | ) | 1,915,512,513 | |||||
Net increase (decrease) in net assets | (244,240,463 | ) | 1,915,505,502 | |||||
Net Assets: | ||||||||
Beginning of year | 5,181,690,322 | 3,266,184,820 | ||||||
End of year | $ | 4,937,449,859 | $ | 5,181,690,322 | ||||
Undistributed net investment income | $ | 3,717 | $ | 3,719 | ||||
Share Transactions: | ||||||||
Issued | 16,226,059,737 | 13,869,654,342 | ||||||
Reinvested | 762,532 | 12,324,595 | ||||||
Redeemed | (16,471,038,573 | ) | (11,966,466,424 | ) | ||||
Change in shares resulting from capital transactions | (244,216,304 | ) | 1,915,512,513 | |||||
See notes to financial statements.
48
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets (cont.)
Tax-Free Money Market Fund | ||||||||
For the Year Ended September 30, 2010 | For the Year Ended September 30, 2009 | |||||||
From Investment Activities: | ||||||||
Operations: | ||||||||
Net investment income | $ | 637,673 | $ | 3,318,466 | ||||
Net realized gains from investment transactions | 82,268 | 160,623 | ||||||
Change in net assets resulting from operations | 719,941 | 3,479,089 | ||||||
Distributions from Net Investment Income | ||||||||
RBC Institutional Class 1 Shareholders | (302,641 | ) | (2,817,040 | ) | ||||
RBC Institutional Class 2 Shareholders | (232,358 | ) | (41 | ) | ||||
RBC Investor Class Shareholders | (22,371 | ) | (97,915 | ) | ||||
RBC Reserve Class Shareholders | (51,543 | ) | (299,976 | ) | ||||
RBC Select Class Shareholders | (29,008 | ) | (269,813 | ) | ||||
Change in net assets resulting from Distributions of Net Investment Income | (637,921 | ) | (3,484,785 | ) | ||||
Distributions from Net Realized Gains | ||||||||
RBC Institutional Class 1 Shareholders | (14,649 | ) | — | |||||
RBC Institutional Class 2 Shareholders | (33,271 | ) | — | |||||
RBC Investor Class Shareholders | (26,166 | ) | — | |||||
RBC Reserve Class Shareholders | (52,895 | ) | — | |||||
RBC Select Class Shareholders | (31,085 | ) | — | |||||
Change in net assets resulting from Distributions of Net Realized Gains | (158,066 | ) | — | |||||
Capital Transactions: | ||||||||
Proceeds from shares issued | 2,744,497,706 | 2,278,391,724 | ||||||
Distributions reinvested | 768,289 | 3,484,785 | ||||||
Cost of shares redeemed | (2,210,973,743 | ) | (2,259,627,588 | ) | ||||
Change in net assets resulting from capital transactions | 534,292,252 | 22,248,921 | ||||||
Net increase in net assets | 534,216,206 | 22,243,225 | ||||||
Net Assets: | ||||||||
Beginning of year | 925,951,515 | 903,708,290 | ||||||
End of year | $ | 1,460,167,721 | $ | 925,951,515 | ||||
Undistributed net investment income | $ | — | $ | — | ||||
Share Transactions: | ||||||||
Issued | 2,744,496,351 | 2,278,391,724 | ||||||
Reinvested | 768,289 | 3,484,785 | ||||||
Redeemed | (2,210,973,743 | ) | (2,259,627,588 | ) | ||||
Change in shares resulting from capital transactions | 534,290,897 | 22,248,921 | ||||||
See notes to financial statements.
49
|
Prime Money Market Fund | (Selected data for a share outstanding throughout the periods indicated) |
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income | Net Realized/ Unrealized Gain (Loss) on Investments | Total from Investment Activities | Net Investment Income | Total Distributions | Net Asset Value, End of Period | Total Return | Net Assets, End of Period (millions) | Ratio of Net Expenses to Average Net Assets | Ratio of Net Investment Income to Average Net Assets | Ratio of Expenses to Average Net Assets* | |||||||||||||
RBC Institutional | ||||||||||||||||||||||||
Year Ended | $1.00 | (a)(b) | (b) | (b) | (b) | (b) | $1.00 | 0.19% | $4,051 | 0.17% | 0.19% | (g) | ||||||||||||
Year Ended | 1.00 | 0.01(a) | (b) | 0.01 | (0.01) | (0.01) | 1.00 | 0.95% | 4,426 | 0.55%(f) | 1.03% | 0.55% | ||||||||||||
Year Ended | 1.00 | 0.03(a) | (b) | 0.03 | (0.03) | (0.03) | 1.00 | 3.02% | 10,591 | 0.84% | 2.94% | 0.87% | ||||||||||||
Year Ended | 1.00 | 0.05 | (b) | 0.05 | (0.05) | (0.05) | 1.00 | 4.69% | 9,662 | 0.80% | 4.59% | 0.89% | ||||||||||||
Year Ended | 1.00 | 0.04 | (b) | 0.04 | (0.04) | (0.04) | 1.00 | 3.99% | 8,685 | 0.80% | 3.93% | 0.92% | ||||||||||||
RBC Institutional | ||||||||||||||||||||||||
Year Ended | $1.00 | (a)(b) | (b) | (b) | (b) | (b) | $1.00 | 0.09% | $830 | 0.27% | 0.07% | 0.27%(g) | ||||||||||||
Period Ended | 1.00 | (a)(b) | (b) | (b) | (b) | (b) | 1.00 | 0.62%(c) | 19 | 0.31%(d) | 0.45%(d) | 0.32%(d) | ||||||||||||
RBC Investor Class | ||||||||||||||||||||||||
Year Ended | $1.00 | (a)(b) | (b) | (b) | (b) | (b) | $1.00 | 0.01% | $3,995 | 0.35% | 0.01% | 1.13% | ||||||||||||
Period Ended | 1.00 | (a)(b) | (b) | (b) | (b) | (b) | 1.00 | 0.15%(c) | 4,659 | 0.91%(d) | 0.16%(d) | 1.19%(d) | ||||||||||||
RBC Reserve Class | ||||||||||||||||||||||||
Year Ended | $1.00 | (a)(b) | (b) | (b) | (b) | (b) | $1.00 | 0.01% | $5,165 | 0.35% | 0.01% | 1.03% | ||||||||||||
Period Ended | 1.00 | (a)(b) | (b) | (b) | (b) | (b) | 1.00 | 0.22%(c) | 4,870 | 0.83%(d) | 0.24%(d) | 1.08%(d) | ||||||||||||
RBC Select Class | ||||||||||||||||||||||||
Year Ended | $1.00 | (a)(b) | (b) | (b) | (b) | (b) | $1.00 | 0.01% | $1,572 | 0.35% | 0.01% | 0.92% | ||||||||||||
Period Ended | 1.00 | (a)(b) | (b) | (b) | (b) | (b) | 1.00 | 0.27%(c) | 1,383 | 0.77%(d) | 0.29%(d) | 0.97%(d) |
* | During the periods, 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. |
(a) | Per share net investment income has been calculated using the average daily shares method. |
(b) | Less than $0.01 or $(0.01) per share. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | For the period from November 21, 2008 (commencement of operations) to September 30, 2009. |
(f) | Beginning November 21, 2008, the net operating expenses were contractually limited to 0.20% of average daily net assets. The ratio of net expenses to average net assets represents a blended percentage for the year ended September 30, 2009. |
(g) | There were no waivers or reimbursements during the period. |
See notes to financial statements.
50
FINANCIAL HIGHLIGHTS
|
U.S. Government Money Market Fund | (Selected data for a share outstanding throughout the periods indicated) |
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income | Net Realized/ Unrealized Gain (Loss) on Investments | Total from Investment Activities | Net Investment Income | Total Distributions | Net Asset Value, End of Period | Total Return | Net Assets, End of Period (millions) | Ratio of Net Expenses to Average Net Assets | Ratio of Net Investment Income to Average Net Assets | Ratio of Expenses to Average Net Assets* | |||||||||||||
RBC Institutional | ||||||||||||||||||||||||
Year Ended | $1.00 | (a)(b) | (b) | (b) | (b) | (b) | $1.00 | 0.11% | $662 | 0.17% | 0.11% | (g) | ||||||||||||
Year Ended | 1.00 | 0.01(a) | (b) | 0.01 | (0.01) | (0.01) | 1.00 | 0.73% | 848 | 0.49%(f) | 0.98% | (g) | ||||||||||||
Year Ended | 1.00 | 0.03(a) | (b) | 0.03 | (0.03) | (0.03) | 1.00 | 2.70% | 3,266 | 0.72% | 2.51% | (g) | ||||||||||||
Year Ended | 1.00 | 0.04 | (b) | 0.04 | (0.04) | (0.04) | 1.00 | 4.56% | 1,393 | 0.76% | 4.47% | (g) | ||||||||||||
Year Ended | 1.00 | 0.04 | (b) | 0.04 | (0.04) | (0.04) | 1.00 | 3.90% | 749 | 0.78% | 3.82% | (g) | ||||||||||||
RBC Institutional | ||||||||||||||||||||||||
Year Ended | $1.00 | (a)(b) | (b) | (b) | (b) | (b) | $1.00 | 0.02% | $124 | 0.27% | 0.02% | 0.27% | ||||||||||||
Period Ended | 1.00 | (a)(b) | (b) | (b) | (b) | (b) | 1.00 | 0.44%(c) | 14 | 0.30%(d) | 0.56%(d) | 0.30%(d) | ||||||||||||
RBC Investor Class | ||||||||||||||||||||||||
Year Ended | $1.00 | (a)(b) | (b) | (b) | (b) | (b) | $1.00 | 0.01% | $1,260 | 0.27% | 0.01% | 1.13% | ||||||||||||
Period Ended | 1.00 | (a)(b) | (b) | (b) | (b) | (b) | 1.00 | 0.11%(c) | 1,372 | 0.65%(d) | 0.07%(d) | 1.17%(d) | ||||||||||||
RBC Reserve Class | ||||||||||||||||||||||||
Year Ended | $1.00 | (a)(b) | (b) | (b) | (b) | (b) | $1.00 | 0.01% | $1,752 | 0.27% | 0.01% | 1.03% | ||||||||||||
Period Ended | 1.00 | (a)(b) | (b) | (b) | (b) | (b) | 1.00 | 0.14%(c) | 1,714 | 0.65%(d) | 0.15%(d) | 1.06%(d) | ||||||||||||
RBC Select Class | ||||||||||||||||||||||||
Year Ended | $1.00 | (a)(b) | (b) | (b) | (b) | (b) | $1.00 | 0.01% | $1,139 | 0.27% | 0.01% | 0.93% | ||||||||||||
Period Ended | 1.00 | (a)(b) | (b) | (b) | (b) | (b) | 1.00 | 0.17%(c) | 1,233 | 0.63%(d) | 0.18%(d) | 0.95%(d) |
* | During the periods, 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. |
(a) | Per share net investment income has been calculated using the average daily shares method. |
(b) | Less than $0.01 or $(0.01) per share. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | For the period from November 21, 2008 (commencement of operations) to September 30, 2009. |
(f) | Beginning November 21, 2008, the net operating expenses were contractually limited to 0.20% of average daily net assets. The ratio of net expenses to average net assets represents a blended percentage for the year ended September 30, 2009. |
(g) | There were no waivers or reimbursements during the period. |
See notes to financial statements.
51
FINANCIAL HIGHLIGHTS
|
Tax-Free Money Market Fund | (Selected data for a share outstanding throughout the periods indicated) |
Investment Activities | Distributions | Ratios/Supplemental Data | ||||||||||||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income | Net Realized/ Unrealized Gain (Loss) on Investments | Total from Investment Activities | Net Investment Income | Net Realized Gains | Net Asset Value, End of Period | Total Return | Net Assets, End of Period (millions) | Ratio of Net Average Net Assets | Ratio of Net Investment Income(Loss) to Average Net Assets | Ratio of Expenses to Average Net Assets* | |||||||||||||
RBC Institutional | ||||||||||||||||||||||||
Year Ended | $1.00 | (a)(b) | (b) | (b) | (b) | (b) | $1.00 | 0.25% | $71 | 0.18% | 0.22% | (g) | ||||||||||||
Year Ended | 1.00 | 0.01(a) | (b) | 0.01 | (0.01) | — | 1.00 | 0.74% | 51 | 0.71%(f) | 1.49% | 0.71% | ||||||||||||
Year Ended | 1.00 | 0.02(a) | (b) | 0.02 | (0.02) | — | 1.00 | 1.95% | 904 | 0.80% | 1.90% | 0.84% | ||||||||||||
Year Ended | 1.00 | 0.03 | (b) | 0.03 | (0.03) | — | 1.00 | 3.00% | 841 | 0.70% | 2.96% | 0.84% | ||||||||||||
Year Ended | 1.00 | 0.02 | — | 0.02 | (0.02) | — | 1.00 | 2.52% | 791 | 0.70% | 2.49% | 0.85% | ||||||||||||
RBC Institutional | ||||||||||||||||||||||||
Year Ended | $1.00 | (a)(b) | (b) | (b) | (b) | (b) | $1.00 | 0.15% | $282 | 0.28% | 0.09% | 0.28% | ||||||||||||
Period Ended | 1.00 | (a)(b) | (b) | (b) | (b) | — | 1.00 | 0.41%(c) | (h) | 0.34%(d) | 0.45%(d) | 0.34%(d) | ||||||||||||
RBC Investor Class | ||||||||||||||||||||||||
Year Ended | $1.00 | (a)(b) | (b) | (b) | (b) | (b) | $1.00 | 0.02% | $210 | 0.42% | 0.01% | 1.15% | ||||||||||||
Period Ended | 1.00 | (a)(b) | (b) | (b) | (b) | — | 1.00 | 0.04%(c) | 202 | 0.76%(d) | 0.03%(d) | 1.19%(d) | ||||||||||||
RBC Reserve Class | ||||||||||||||||||||||||
Year Ended | $1.00 | (a)(b) | (b) | (b) | (b) | (b) | $1.00 | 0.02% | $612 | 0.40% | 0.01% | 1.04% | ||||||||||||
Period Ended | 1.00 | (a)(b) | (b) | (b) | (b) | — | 1.00 | 0.06%(c) | 432 | 0.74%(d) | 0.05%(d) | 1.09%(d) | ||||||||||||
RBC Select Class | ||||||||||||||||||||||||
Year Ended | $1.00 | (a)(b) | (b) | (b) | (b) | (b) | $1.00 | 0.02% | $286 | 0.40% | 0.01% | 0.94% | ||||||||||||
Period Ended | 1.00 | (a)(b) | (b) | (b) | (b) | — | 1.00 | 0.11%(c) | 242 | 0.68%(d) | 0.10%(d) | 0.99%(d) |
* | During the periods, 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. |
(a) | Per share net investment income has been calculated using the average daily shares method. |
(b) | Less than $0.01 or $(0.01) per share. |
(c) | Not annualized. |
(d) | Annualized. |
(e) | For the period from November 21, 2008 (commencement of operations) to September 30, 2009. |
(f) | Beginning November 21, 2008, the net operating expenses were contractually limited to 0.20% of average daily net assets. The ratio of net expenses to average net assets represents a blended percentage for the year ended September 30, 2009. |
(g) | There were no waivers or reimbursements during the period. |
(h) | Less than $1,000,000. |
See notes to financial statements.
52
|
September 30, 2010
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. Predecessor funds to the Trust were reorganized as portfolios of the Trust effective April 16, 2004. This annual report includes the following three investment portfolios (“Funds”):
- Prime Money Market Fund (“Prime Money Market Fund”)
- U.S. Government Money Market Fund (“U.S. Government Money Market Fund”)
- Tax-Free Money Market Fund (“Tax-Free Money Market Fund”)
The Prime Money Market Fund, U.S. Government Money Market Fund and Tax-Free Money Market Fund offer five share classes: RBC Institutional Class 1, RBC Institutional Class 2, RBC Investor Class, RBC Reserve Class and RBC Select Class.
RBC Global Asset Management (U.S.) Inc (“RBC GAM (US)”) acts as the investment adviser for the Funds. The officers of the Trust (“Fund Management”) are also employees of RBC GAM (US) or its affiliates or BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”), the co-administrator.
On July 1, 2010, The PNC Financial Services Group, Inc. sold the outstanding stock of PNC Global Investment Servicing Inc. to The Bank of New York Mellon Corporation. At the closing of the sale, PNC Global Investment Servicing (U.S.) Inc. changed their name to BNY Mellon Investment Servicing (US) Inc.
2. Significant Accounting Policies
Summarized below are the significant accounting policies of the Funds. These policies conform to accounting principles generally accepted in the United States of America (“GAAP”). Fund management follows these policies when preparing financial statements. 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.
Security Valuation:
Securities held by the Funds are valued at amortized cost, which approximates fair market value, in order to maintain a constant net asset value of $1.00 per share. If amortized cost no longer approximates market value due to credit or other impairments of an issuer, the Fund will use pricing and valuation procedures approved by the Trust’s Board of Trustees (the “Board”) to determine a security’s fair value. Investments in open-end companies are valued at net asset value.
Money market funds must invest exclusively in high quality securities. To be considered high quality, a security must be rated in one of the two highest short-term credit quality categories by a nationally recognized rating organization such as Standard & Poors Corporation or Moody’s Investors Service.
Fair Value Measurements:
Various inputs are used in determining the fair value of investments which 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 - 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. Generally, the types of securities included in Level 2 for the Funds are U.S. Treasury bills and certain money market
53
NOTES TO FINANCIAL STATEMENTS
|
instruments, including those valued at amortized cost under Rule 2a-7. Amortized cost approximates the current fair value of a security, but is not obtained from a quoted price in an active market.
• Level 3 - 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 securities are not necessarily an indication of the risk associated with investing in those securities.
The summary of inputs used to determine the fair value of the Fund’s investments as of September 30, 2010 is as follows:
Funds | Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Total | ||||||||||||
Prime Money Market | $ | — | $ | 15,970,428,836(b) | $— | $ | 15,970,428,836 | |||||||||
U.S. Government Money Market | — | 5,140,172,858(b)(c) | — | 5,140,172,858 | ||||||||||||
Tax Free Money Market | 15,000,000(a) | 1,432,290,944(c) | — | 1,447,290,944 |
(a) | Level 1 investments consist of Investment Companies. |
(b) | The breakdown of the Fund’s investments by security type is disclosed in the Schedules of Portfolio Investments. |
(c) The breakdown of the Fund’s investments by state classification is disclosed in the Schedules of Portfolio Investments.
During the year ended September 30, 2010, the Funds recognized no significant transfers to/from level 1 or 2. Additional disclosure surrounding the activity in level 3 fair value measurement will be effective for fiscal years beginning after December 15, 2010. Management is currently evaluating the impact it will have on its financial statement disclosures.
Investment Transactions and Income:
Investment transactions are accounted for on the date the security is bought or sold (“trade date”). Dividend income is recorded on the ex-dividend date. Realized gains and losses from investment transactions are calculated based on the costs of the specific security (also known as identified cost basis). Interest income is recognized on the accrual basis. The Funds amortize all premiums and discounts on debt securities.
When Issued Transactions:
The Funds may engage in when-issued transactions. The Funds record when-issued securities on the trade date and maintain sufficient liquidity so that cash will be available to make payment for the securities purchased. Securities purchased on a when-issued basis are valued daily beginning on trade date and begin earning interest on the settlement date. As of September 30, 2010, the Funds held no when-issued securities.
Repurchase Agreements:
The Funds may enter into repurchase agreements with primary dealers that report to the Federal Reserve Bank of New York or the 100 largest U.S. commercial banks (as measured by domestic deposits) who are deemed creditworthy under guidelines approved by the Board. 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 U.S. Bank N.A., the Funds’ custodian bank, until maturity of the repurchase agreement. The Funds have procedures to secure 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.
54
NOTES TO FINANCIAL STATEMENTS
|
Expense, Investment Income and Gain/Loss Allocation:
Each Fund pays the expenses that are directly related to its operations, such as custodian fees or investment advisory fees. Expenses incurred by the Trust, such as trustee or legal fees, are allocated among each of the Funds either proportionately based upon each Fund’s relative net assets or using another reasonable basis such as equally across all Funds, depending on the nature of the expense. Individual share classes within a Fund are charged expenses specific to that class, such as distribution 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 the proportion of relative net assets.
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 are declared daily and paid monthly. Dividends will also be paid at any time during the month upon total redemption of shares in an account. Capital gains, if any, 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 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. expiring capital loss carryforward), they are reclassified within a Fund’s capital accounts based on their federal tax basis treatment. Such differences are not reflected in the calculation of the Financial Highlights.
For the year ended September 30, 2010, reclassifications for permanent differences were as follows:
Increase Undistributed Net Investment Income | Decrease Accumulated Realized Gains | |||||||
Tax-Free Money Market Fund | $248 | $(248) |
Credit Enhancement:
Certain obligations held in 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 (i.e., AMBAC and MBIA).
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 the Funds’ assets and furnishes related office facilities, equipment, research and personnel. The agreements require the Funds to pay RBC GAM (US) a monthly fee based upon average daily net assets. Under the terms of the advisory contract RBC GAM (US) is entitled to receive fees based on a percentage of the average daily net assets as follows:
Average Daily Net Assets of Fund | Annual Rate | |||
Prime Money Market Fund | All Net Assets | 0.10% | ||
U.S. Government Money Market Fund | All Net Assets | 0.10% | ||
Tax Free Money Market Fund | All Net Assets | 0.10% |
RBC Institutional Class 1 of Prime Money Market Fund, U.S. Government Money Market Fund and Tax-Free Money Market Fund pays an annual shareholder services administration fee of 0.05% of the average daily net assets attributable to RBC Institutional Class 1 shares of a Fund that is used to compensate financial intermediaries for providing services to shareholders and maintaining shareholder accounts. This shareholder services administration fee is not paid pursuant to Rule 12b-1. RBC GAM (US) has contractually agreed to waive fees and/or reimburse expenses under an Expense Limitation
55
NOTES TO FINANCIAL STATEMENTS
|
Agreement in order to maintain the net annual fund operating expenses at 0.20% for RBC Institutional Class 1 of the Prime Money Market Fund, U.S. Government Money Market Fund and Tax-Free Money Market Fund. During the year ended September 30, 2010, there were no fees waived under this agreement.
RBC GAM (US) and BNY Mellon serve as co-administrators to the Funds. 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. RBC GAM (US) does not receive an administration services fee. BNY Mellon receives a fee for its services payable by the Funds based on the 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 adviser or the administrator. Such Officers and Trustees receive no compensation from the Funds for serving in their respective roles.
The RBC Funds currently pay the independent Trustees (Trustees of the Trust who are not directors, officers or employees of the adviser, administrator or distributor) an annual retainer of $30,000. 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 $5,000 for each in-person Board meeting attended, a meeting fee of $1,000 for each telephonic or Special Board meeting attended, and a $1,000 ($1,500 effective October 1, 2010) fee for each Board committee meeting attended and are reimbursed for all out-of-pocket expenses relating to attendance at such meetings.
Security Transactions with Affiliated Funds
During the year ended September 30, 2010, the Prime Money Market Fund, U.S. Government Money Market Fund and Tax-Free Money Market Fund engaged in security purchase and sale transactions with other RBC Funds or investment advisory clients managed by RBC GAM (US). These purchase and sale transactions complied with Rule 17a-7 under the Investment Company Act of 1940 (as amended) and amounted to $534,815,000 and $3,500,000 for Prime Money Market Fund, respectively, $25,000,000 and $7,000,000 for U.S. Government Money Market Fund, respectively, and $319,693,000 and $164,715,000 for Tax-Free Money Market Fund, respectively.
4. Fund Distribution
The Prime Money Market, U. S. Government Money Market and Tax-Free Money Market Funds have adopted a Master Distribution 12b-1 Plan (the “Plan”) with respect to RBC Institutional Class 2, RBC Investor Class, RBC Reserve Class and the RBC Select Class, in which Tamarack Distributors Inc. (through February 15, 2010) acted, and Quasar Distributors LLC (effective February 16, 2010) (the “Distributor”) acts as the Funds’ distributor. Tamarack Distributors, Inc. was an affiliate of RBC GAM (US), Quasar Distributors LLC is unaffiliated. The Plan permits each Fund to make payments for or to reimburse the Distributor monthly for distribution-related costs and expenses of marketing shares of each share class covered under the Plan, and/or for providing shareholder services. The following chart shows the current Plan fee rate for each class:
RBC Institutional Class 2 | RBC Investor Class | RBC Reserve Class | RBC Select Class | |||||||||||||
12b-1 Plan Fee | 0.15% | 1.00% | 0.90% | 0.80% |
Plan fees are based on average daily net assets of the applicable class. 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.
RBC Capital Markets, LLC, in its role as shareholder servicing agent to the Funds, has agreed to waive fees and/or reimburse expenses in order to maintain the net annual fund operating expenses for each class listed below for each Fund to the following amounts:
56
NOTES TO FINANCIAL STATEMENTS
|
Fund | Operating Expense Limit | |||
Prime Money Market Fund | ||||
RBC Institutional Class 2 | 0.30% | |||
RBC Investor Class | 1.05% | |||
RBC Reserve Class | 0.90% | |||
RBC Select Class | 0.80% | |||
U.S. Government Money Market Fund | ||||
RBC Institutional Class 2 | 0.30% | |||
RBC Investor Class | 1.00% | |||
RBC Reserve Class | 0.85% | |||
RBC Select Class | 0.77% | |||
Tax-Free Money Market Fund | ||||
RBC Institutional Class 2 | 0.30% | |||
RBC Investor Class | 1.00% | |||
RBC Reserve Class | 0.85% | |||
RBC Select Class | 0.70% |
This Expense Limitation Agreement is in place until January 31, 2012 and shall continue for additional one-year terms unless terminated by either party at any time. Each Fund will carry forward, for a period not to exceed 12 months from the date on which a waiver or reimbursement is made by the Distributor, any expenses in excess of the Expense Limitation and repay the Distributor such amounts, provided the Fund is able to effect such repayment and remain in compliance with the Expense Limitation. At September 30, 2010, the amounts subject to possible recoupment under the expense limitation agreement are $11,932,797, $6,709,796 and $1,956,311 for the Prime Money Market Fund, U.S. Government Money Market Fund and Tax Free Money Market Fund, respectively.
The Distributor may voluntarily waive and/or reimburse additional fund operating expenses from time to time. Any such voluntary program may be modified or discontinued at any time without notice.
For the year ended September 30, 2010, the following distribution fees were waived:
Fund | Distribution Fees Waived | |||
Prime Money Market Fund | ||||
RBC Investor Class | $33,147,953 | |||
RBC Reserve Class | 34,514,968 | |||
RBC Select Class | 8,989,926 | |||
U.S. Government Money Market Fund | ||||
RBC Institutional Class 2 | $ 4,522 | |||
RBC Investor Class | 11,717,620 | |||
RBC Reserve Class | 13,055,829 | |||
RBC Select Class | 7,712,752 | |||
Tax-Free Money Market Fund | ||||
RBC Institutional Class 2 | $ 809 | |||
RBC Investor Class | 1,635,058 | |||
RBC Reserve Class | 3,278,782 | |||
RBC Select Class | 1,540,467 |
57
NOTES TO FINANCIAL STATEMENTS
|
5. Capital Share Transactions
The number of shares sold, reinvested and redeemed correspond to the net proceeds from sale of shares, reinvestments of dividends and cost of shares redeemed, respectively, since shares are redeemed at $1.00 per share.
Transactions for the period were as follows:
Prime Money Market Fund | U.S. Government Money Market Fund | |||||||||||||||
For the Year Ended September 30, 2010 | For the Period Ended September 30, 2009* | For the Year Ended September 30, 2010 | For the Period Ended September 30, 2009* | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
RBC Institutional Class 1 | ||||||||||||||||
Proceeds from shares issued | $ | 65,954,109,708 | $ | 28,816,601,968 | $ | 11,960,090,750 | $ | 4,009,468,601 | ||||||||
Distributions reinvested | 5,054,514 | 28,549,543 | 322,113 | 7,117,794 | ||||||||||||
Cost of shares redeemed | (66,334,967,038 | ) | (35,029,506,446 | ) | (12,147,004,362 | ) | (6,434,449,599 | ) | ||||||||
Change in RBC Institutional Class 1 | $ | (375,802,816 | ) | $ | (6,184,354,935 | ) | $ | (186,591,499 | ) | $ | (2,417,863,204 | ) | ||||
RBC Institutional Class 2 | ||||||||||||||||
Proceeds from shares issued | $ | 2,085,510,694 | $ | 142,095,726 | $ | 278,951,408 | $ | 238,100,001 | ||||||||
Distributions reinvested | 558,272 | 19,764 | 13,432 | 101,299 | ||||||||||||
Cost of shares redeemed | (1,275,077,250 | ) | (123,001,000 | ) | (168,820,280 | ) | (224,104,649 | ) | ||||||||
Change in RBC Institutional Class 2 | $ | 810,991,716 | $ | 19,114,490 | $ | 110,144,560 | $ | 14,096,651 | ||||||||
RBC Investor Class | ||||||||||||||||
Proceeds from shares issued | $ | 1,846,640,460 | $ | 6,804,530,025 | $ | 1,071,449,784 | $ | 3,386,163,324 | ||||||||
Distributions reinvested | 424,582 | 6,340,574 | 136,023 | 812,612 | ||||||||||||
Cost of shares redeemed | (2,510,904,014 | ) | (2,150,105,057 | ) | (1,182,760,630 | ) | (2,015,297,655 | ) | ||||||||
Change in RBC Investor Class | $ | (663,838,972 | ) | $ | 4,660,765,542 | $ | (111,174,823 | ) | $ | 1,371,678,281 | ||||||
RBC Reserve Class | ||||||||||||||||
Proceeds from shares issued | $ | 2,996,746,846 | $ | 6,965,218,353 | $ | 1,265,180,323 | $ | 2,901,934,135 | ||||||||
Distributions reinvested | 508,693 | 10,119,658 | 172,829 | 2,280,328 | ||||||||||||
Cost of shares redeemed | (2,701,974,266 | ) | (2,103,358,880 | ) | (1,227,885,415 | ) | (1,190,006,864 | ) | ||||||||
Change in RBC Reserve Class | $ | 295,281,273 | $ | 4,871,979,131 | $ | 37,467,737 | $ | 1,714,207,599 | ||||||||
RBC Select Class | ||||||||||||||||
Proceeds from shares issued | $ | 1,987,064,607 | $ | 2,574,988,680 | $ | 1,650,387,472 | $ | 3,333,988,281 | ||||||||
Distributions reinvested | 156,504 | 3,485,059 | 118,135 | 2,012,562 | ||||||||||||
Cost of shares redeemed | (1,798,370,802 | ) | (1,194,638,329 | ) | (1,744,567,886 | ) | (2,102,607,657 | ) | ||||||||
Change in RBC Select Class | $ | 188,850,309 | $ | 1,383,835,410 | $ | (94,062,279 | ) | $ | 1,233,393,186 | |||||||
Change in net assets resulting from capital transactions | $ | 255,481,510 | $ | 4,751,339,638 | $ | (244,216,304 | ) | $ | 1,915,512,513 | |||||||
58
NOTES TO FINANCIAL STATEMENTS
|
Tax-Free Money Market Fund | ||||||||
For the Year Ended September 30, 2010 | For the Period Ended September 30, 2009* | |||||||
CAPITAL TRANSACTIONS: | ||||||||
RBC Institutional Class 1 | ||||||||
Proceeds from shares issued | $ | 573,353,917 | $ | 293,818,956 | ||||
Distributions reinvested | 289,586 | 2,817,032 | ||||||
Cost of shares redeemed | (553,447,767 | ) | (1,149,542,084 | ) | ||||
Change in RBC Institutional Class 1 | $ | 20,195,736 | $ | (852,906,096 | ) | |||
RBC Institutional Class 2 | ||||||||
Proceeds from shares issued | $ | 605,851,460 | $ | 10,001 | ||||
Distributions reinvested | 265,629 | 41 | ||||||
Cost of shares redeemed | (324,274,695 | ) | — | |||||
Change in RBC Institutional Class 2 | $ | 281,842,394 | $ | 10,042 | ||||
RBC Investor Class | ||||||||
Proceeds from shares issued | $ | 400,685,536 | $ | 430,651,538 | ||||
Distributions reinvested | 48,539 | 97,917 | ||||||
Cost of shares redeemed | (392,730,860 | ) | (229,202,586 | ) | ||||
Change in RBC Investor Class | $ | 8,003,215 | $ | 201,546,869 | ||||
RBC Reserve Class | ||||||||
Proceeds from shares issued | $ | 637,444,166 | $ | 821,914,742 | ||||
Distributions reinvested | 104,440 | 299,980 | ||||||
Cost of shares redeemed | (457,063,262 | ) | (390,510,981 | ) | ||||
Change in RBC Reserve Class | $ | 180,485,344 | $ | 431,703,741 | ||||
RBC Select Class | ||||||||
Proceeds from shares issued | $ | 527,162,627 | $ | 731,996,487 | ||||
Distributions reinvested | 60,095 | 269,815 | ||||||
Cost of shares redeemed | (483,457,159 | ) | (490,371,937 | ) | ||||
Change in RBC Select Class | $ | 43,765,563 | $ | 241,894,365 | ||||
Change in net assets resulting from capital transactions | $ | 534,292,252** | $ | 22,248,921 | ||||
* For the year ended September 30, 2009 for the RBC Institutional Class 1 and from November 21, 2008 (commencement of operations) through September 30, 2009 for RBC Institutional Class 2, RBC Investor Class, RBC Reserve Class and RBC Select Class.
** Includes a reimbursement from RBC GAM (US) in the amount of $1,355 for a commission/underwriter fee that was received by RBC Capital Markets. Without this reimbursement the change in shares resulting from capital transactions would be 534,290,897 which represents 20,195,627; 281,842,136; 8,003,039; 180,484,788 and 43,765,307 for the RBC Institutional Class 1, RBC Institutional Class 2, RBC Investor Class, RBC Reserve Class and RBC Select Class, respectively.
6. Federal Income Taxes
It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions applicable 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.
Management has analyzed the Funds’ tax positions 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
59
NOTES TO FINANCIAL STATEMENTS
|
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.
The tax character of distributions during the fiscal year ended September 30, 2010 were as follows:
Distributions Paid From | ||||||||||||||||||||||||
Ordinary Income | Net Long Term Capital Gains | Net Short Term Capital Gains | Total Taxable Distributions | Tax Exempt Distributions | Total Distributions Paid* | |||||||||||||||||||
Prime Money Market Fund | $12,778,513 | $ — | $ — | $12,778,513 | $ — | $12,778,513 | ||||||||||||||||||
U.S. Government Money Market Fund | 1,743,028 | — | — | 1,743,028 | — | 1,743,028 | ||||||||||||||||||
Tax-Free Money Market Fund | 35,940 | 51,126 | 107,188 | 194,254 | 601,733 | 795,987 |
The tax character of distributions during the fiscal year ended September 30, 2009 were as follows:
Distributions Paid From | ||||||||||||||||||||||||
Ordinary Income | Net Long Term Capital Gains | Net Short Term Capital Gains | Total Taxable Distributions | Tax Exempt Distributions | Total Distributions Paid* | |||||||||||||||||||
Prime Money Market Fund | $50,227,912 | $ — | $ — | $50,227,912 | $ — | $50,227,912 | ||||||||||||||||||
U.S. Government Money Market Fund | 13,072,069 | — | 3,719 | 13,075,788 | — | 13,075,788 | ||||||||||||||||||
Tax-Free Money Market Fund | 60,960 | 582 | 165,737 | 227,279 | 3,257,506 | 3,484,785 |
*Total distributions paid may differ from the Statements of Changes in Net Assets because distributions are recognized when actually paid for tax purposes.
As of September 30, 2010, the components of accumulated earnings/(losses) on a tax basis were as follows:
Undistributed Ordinary Income | Undistributed Short-Term Capital Gains | Undistributed Long-Term Capital Gains | Distributions Payable | Accumulated Capital Loss Carryforwards | Deferred Post October Losses | Unrealized Depreciation | Total Accumulated Earnings/(Losses) | |||||||||||||||||||||||||
Prime Money Market Fund | $ | 170,978 | $ | — | $ | — | $ | (172,009 | ) | $ | (4,713,817 | ) | $ | — | $ | — | $ | (4,714,848 | ) | |||||||||||||
U.S. Government Money Market Fund | 24,037 | — | — | (20,320) | (18,765) | (13,842) | — | (28,890) | ||||||||||||||||||||||||
Tax Free Money Market Fund | — | 21,587 | 50,212 | — | — | — | — | 71,799 |
As of September 30, 2010, the following Funds had net capital loss carryforwards to offset future net capital gains, if any:
Capital Loss Carryforward | Expires | |||||||
Prime Money Market Fund | $ 15,490 | 2014 | ||||||
52,797 | 2015 | |||||||
38,902 | 2016 | |||||||
4,606,628 | 2017 | |||||||
U.S. Government Money Market Fund | 18,765 | 2018 |
Capital loss carryforwards utilized in the current year were $27,903 for the Prime Money Market Fund.
Under current tax law, capital losses realized after October 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
60
NOTES TO FINANCIAL STATEMENTS
|
following Fund had deferred post October capital losses, which will be treated as arising on the first business day of the fiscal year ending September 30, 2011 and as such are included in current year earnings.
Deferred Post-October Losses | ||||
U.S. Government Money Market Fund | $13,842 |
7. Subsequent Events
Management has evaluated the impact of subsequent events of the Funds and has determined that there are no subsequent events that require recognition or disclosure in the financial statements.
61
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
To the Shareholders and Board of Trustees of RBC Funds Trust
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of Prime Money Market Fund, U.S Government Money Market Fund and Tax-Free Money Market Fund (collectively the “Funds”), three of the portfolios constituting the RBC Funds Trust (the “Trust”), as of September 30, 2010, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2010, by correspondence with the Funds’ custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the portfolios of the RBC Funds Trust referred to above, as of September 30, 2010, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Chicago, Illinois
November 23, 2010
62
OTHER FEDERAL INCOME TAX INFORMATION (UNAUDITED)
|
During the fiscal year ended September 30, 2010, the Tax-Free Money Market Fund declared tax-exempt distributions of $601,733.
For the year ended September 30, 2010, the Tax-Free Money Market Fund had net long term capital gain distributions of $51,126.
The Funds designate a portion of the income dividends distributed during the fiscal year ended September 30, 2010, as U.S. Government Income as follows:
Prime Money Market Fund | 9.65 | % | ||
U.S. Government Money Market Fund | 34.22 | % |
U.S. Government Income represents the amount of interest that was derived from direct U.S. Government obligations. Generally, such interest is exempt from state income tax. However, for residents of California, New York and Connecticut the statutory threshold requirements were not satisfied. Due to the diversity in state and local tax law, it is recommended you consult a tax adviser as to the applicability of the information provided for your specific situation.
The Funds designate a portion of the income dividends distributed during the fiscal year ended September 30, 2010, as Qualified Interest Income as defined in the Internal Revenue Code as follows:
Prime Money Market Fund | 88.39 | % | ||
U.S. Government Money Market Fund | 100.00 | % | ||
Tax-Free Money Market Fund | 100.00 | % |
The Funds designate a portion of the income dividends distributed during the fiscal year ended September 30, 2010, as Qualified Short-Term Gain as defined in the Internal Revenue Code as follows:
Tax-Free Money Market Fund | 100.00 | % |
All designations 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 designate the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.
63
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Independent Trustees(1)
T. Geron Bell (69)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: President of Twins Sports, Inc. (parent company of the Minnesota Twins) (2002-present); prior thereto President of the Minnesota Twins Baseball Club Incorporated (1987-2002)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: None
Lucy Hancock Bode (59)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: Healthcare consultant (self-employed)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: BioSignia
Leslie H. Garner Jr. (60)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: President and CEO, The Greater Cedar Rapids Community Foundation (2010 to present); President, Cornell College
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: None
Ronald James (59)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: President and Chief Executive Officer, Center for Ethical Business Cultures (2000-present)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: Best Buy Co. Inc.; Bremer Financial Corporation
John A. MacDonald (61)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: Vice President and Treasurer, Hall Family Foundation
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: None
H. David Rybolt (68)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee; since January 2004)
Principal Occupation(s) During Past 5 Years: Consultant, HDR Associates (management consulting)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: None
64
MANAGEMENT (Unaudited)
|
Independent Trustees(1)(2)
James R. Seward (58)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: Private investor (2000-present); CFA
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: Syntroleum Corporation; Brookdale Senior Living Inc.; LabOne, Inc., Concorde Colleges; American Retirement Corp.
William B. Taylor (65)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since September 2005)
Principal Occupation(s) During Past 5 Years: Consultant (2003-present); prior thereto Partner (until 2003) Ernst & Young LLP
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: J.E. Dunn Vermont Assurance
Interested Trustees(1)(2)
Erik R. Preus (45)(4)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since March 2006)
Principal Occupation(s) During Past 5 Years: President and Chief Executive Officer, RBC Funds Trust (2006-present); Head, Strategic Relationships Group, RBC Global Asset Management (U.S.) Inc. (2009-present); Head of Retail Asset Management, RBC Global Asset Management (U.S.) Inc. (2006-2009); Chief Operating Officer, RBC Global Asset Management (U.S.) Inc. (2005-2006); Director, Investment Consulting Services, RBC Dain Rauscher Inc. (2004-2005); Director, Voyageur Advisory Services, RBC Global Asset Management (U.S.) Inc. (2003-2004)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Executive Officers(1)(2)(3)
Erik R. Preus (45)
Position Term of Office and Length of Time Served with the Trust: President and Chief Executive Officer since September 2006
Principal Occupation(s) During Past 5 Years: Head, Strategic Relationships Group, RBC Global Asset Management (U.S.) Inc. (2009-present); Head of Retail Asset Management, RBC Global Asset Management (U.S.) Inc. (2006-2009); Chief Operating Officer, RBC Global Asset Management (U.S.) Inc. (2005-2006); Director, Investment Consulting Services, RBC Dain Rauscher Inc. (2004-2005); Director, Voyageur Advisory Services, RBC Global Asset Management (U.S.) Inc (2003-2004)
James A. Gallo (46)
Address: BNY Mellon Investment Servicing (US) Inc., 760 Moore Road, King of Prussia, PA 19406
Position Term of Office and Length of Time Served with the Trust: Treasurer since October 2007
Principal Occupation(s) During Past 5 Years: Senior Vice President and Managing Director, BNY Mellon Investment Servicing (US) Inc. (2002-present); Vice President and Executive Director, Morgan Stanley (1998-2002)
65
MANAGEMENT (Unaudited)
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Executive Officers(1)(2)(3)
Kathleen A. Hegna (43)
Position Term of Office and Length of Time Served with the Trust: Chief Financial Officer and Principal Accounting Officer since May 2009
Principal Occupation(s) During Past 5 Years: Associate Vice President and Director, Mutual Fund Accounting and Administration, RBC Global Asset Management (U.S.) Inc. (2009-present); Senior Compliance Officer, RBC Global Asset Management (U.S.) Inc. (2006-2009); Director, Asset Management Compliance, RiverSource Investments (2005-2006); Manager, Business Planning and Financial Analysis-Mutual Funds, Ameriprise Financial (2001-2005)
Kathleen A. Gorman (46)
Position Term of Office and Length of Time Served with the Trust: Chief Compliance Officer since April 2006 and Assistant Secretary since September 2006
Principal Occupation(s) During Past 5 Years: Chief Compliance Officer, RBC Funds Trust(2006-present); Chief Compliance Officer, RBC Global Asset Management (U.S.) Inc. (2006-2009); Director, Asset Management Compliance, RiverSource Investments (2004-2006); Senior Compliance Officer, U.S. Bancorp Asset Management (2002-2004)
Lee Greenhalgh (39)
Position Term of Office and Length of Time Served with the Trust: Chief Legal Officer and Secretary since 2008
Principal Occupation(s) During Past 5 Years: Associate General Counsel, RBC Capital Markets, LLC (2006-present); Asset Management Compliance, RiverSource Investments (2004-2006); Procurement Attorney, Ameriprise Financial (2002-2004)
John M. Huber (42)
Position Term of Office and Length of Time Served with the Trust: Chief Investment Officer, Fixed Income Products since February 2005
Principal Occupation(s) During Past 5 Years: Chief Investment Officer, Fixed Income, RBC Global Asset Management (U.S.) Inc. (2004-present); Senior Portfolio Manager and Principal, Galliard Capital Management (1995-2004)
Gordon Telfer (44)
Position Term of Office and Length of Time Served with the Trust: Chief Investment Officer, Equity Products since October 2009; Portfolio Strategist, from March 2004 to October 2009
Principal Occupation(s) During Past 5 Years: Director of Equities - U.S., RBC Global Asset Management (U.S.) Inc. (June 2009 to present); Head of Growth Equities, RBC Global Asset Management (U.S.) Inc. (2008-2009); Senior Portfolio Manager, RBC Global Asset Management (U.S.) Inc. (2004-2008); Managing Director, RBC Global Asset Management (U.S.) Inc. (2007-present); Vice President, RBC Global Asset Management (U.S.) Inc. (2004-2007)
(1) | Except as otherwise noted, the address of each Trustee/Officer is RBC Funds Trust, 100 South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402. |
(2) | 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. |
(3) | Each officer serves in such capacity for an indefinite period of time until his or her removal, resignation or retirement. |
(4) | Erik R. Preus has been determined to be an interested Trustee by virtue of his affiliation with the Trust. |
The Funds’ 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.
66
SUPPLEMENTAL INFORMATION (Unaudited)
|
Shareholder Expense Examples
As a shareholder of the RBC Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) and (2) ongoing costs, including management fees; 12b-1 distribution and service 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 April 1, 2010 through September 30, 2010.
Actual Expenses and Performance
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 4/1/2010 | Ending Account Value 9/30/2010 | Expenses Paid During Period* 4/1/10-9/30/10 | Annualized Expense Ratio During Period 4/1/10-9/30/10 | |||||||||||||
Prime Money Market Fund | ||||||||||||||||
RBC Institutional Class 1 | $1,000.00 | $1,000.90 | $0.85 | 0.17 | % | |||||||||||
RBC Institutional Class 2 | 1,000.00 | 1,000.40 | 1.35 | 0.27 | % | |||||||||||
RBC Investor Class | 1,000.00 | 1,000.10 | 1.75 | 0.35 | % | |||||||||||
RBC Reserve Class | 1,000.00 | 1,000.10 | 1.75 | 0.35 | % | |||||||||||
RBC Select Class | 1,000.00 | 1,000.10 | 1.75 | 0.35 | % | |||||||||||
U.S. Government Money Market Fund | ||||||||||||||||
RBC Institutional Class 1 | 1,000.00 | 1,000.60 | 0.85 | 0.17 | % | |||||||||||
RBC Institutional Class 2 | 1,000.00 | 1,000.10 | 1.35 | 0.27 | % | |||||||||||
RBC Investor Class | 1,000.00 | 1,000.10 | 1.45 | 0.29 | % | |||||||||||
RBC Reserve Class | 1,000.00 | 1,000.10 | 1.45 | 0.29 | % | |||||||||||
RBC Select Class | 1,000.00 | 1,000.10 | 1.45 | 0.29 | % | |||||||||||
Tax-Free Money Market Fund | ||||||||||||||||
RBC Institutional Class 1 | 1,000.00 | 1,000.90 | 0.90 | 0.18 | % | |||||||||||
RBC Institutional Class 2 | 1,000.00 | 1,000.40 | 1.40 | 0.28 | % | |||||||||||
RBC Investor Class | 1,000.00 | 1,000.10 | 1.70 | 0.34 | % | |||||||||||
RBC Reserve Class | 1,000.00 | 1,000.10 | 1.70 | 0.34 | % | |||||||||||
RBC Select Class | 1,000.00 | 1,000.10 | 1.70 | 0.34 | % |
* Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 183/365 (to reflect one-half year period).
67
SUPPLEMENTAL INFORMATION (Unaudited)
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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 4/1/10 | Ending Account Value 9/30/10 | Expenses Paid During Period* 4/1/10-9/30/10 | Annualized Expense Ratio During Period 4/1/10-9/30/10 | |||||||||||||
Prime Money Market Fund | ||||||||||||||||
RBC Institutional Class 1 | $1,000.00 | $1,024.22 | $0.86 | 0.17 | % | |||||||||||
RBC Institutional Class 2 | 1,000.00 | 1,023.71 | 1.37 | 0.27 | % | |||||||||||
RBC Investor Class | 1,000.00 | 1,023.31 | 1.78 | 0.35 | % | |||||||||||
RBC Reserve Class | 1,000.00 | 1,023.31 | 1.78 | 0.35 | % | |||||||||||
RBC Select Class | 1,000.00 | 1,023.31 | 1.78 | 0.35 | % | |||||||||||
U.S. Government Money Market Fund | ||||||||||||||||
RBC Institutional Class 1 | 1,000.00 | 1,024.22 | 0.86 | 0.17 | % | |||||||||||
RBC Institutional Class 2 | 1,000.00 | 1,023.71 | 1.37 | 0.27 | % | |||||||||||
RBC Investor Class | 1,000.00 | 1,023.61 | 1.47 | 0.29 | % | |||||||||||
RBC Reserve Class | 1,000.00 | 1,023.61 | 1.47 | 0.29 | % | |||||||||||
RBC Select Class | 1,000.00 | 1,023.61 | 1.47 | 0.29 | % | |||||||||||
Tax-Free Money Market Fund | ||||||||||||||||
RBC Institutional Class 1 | 1,000.00 | 1,024.17 | 0.91 | 0.18 | % | |||||||||||
RBC Institutional Class 2 | 1,000.00 | 1,023.66 | 1.42 | 0.28 | % | |||||||||||
RBC Investor Class | 1,000.00 | 1,023.36 | 1.72 | 0.34 | % | |||||||||||
RBC Reserve Class | 1,000.00 | 1,023.36 | 1.72 | 0.34 | % | |||||||||||
RBC Select Class | 1,000.00 | 1,023.36 | 1.72 | 0.34 | % |
* Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 183/365 (to reflect one-half year period).
68
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED)
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Information Regarding the Approval of Investment Advisory Agreements
In September, 2010, after evaluating the services provided by RBC Global Asset Management (U.S.), Inc. (formerly named Voyageur Asset Management Inc.) (the “Advisor”) and reviewing the performance, fees and expenses of the Funds, the RBC Funds Board of Trustees determined to approve the continuation of the investment advisory agreements (“Agreements”) with the Advisor for each Fund for an additional year.
As part of their review of the Agreements, the Trustees requested and considered information regarding the advisory services performed by the Advisor, the staffing and qualifications of the Advisor’s personnel responsible for operating and managing the Funds, and the Funds’ performance and expenses. The review process was guided by the Board’s Valuation, Portfolio Management and Performance Committee. The Trustees considered information provided at regular quarterly Board and Committee meetings throughout the year, as well as a special meeting to review requested material related to the proposed renewals and a meeting held to specifically consider the proposed renewals. In connection with their deliberations, the independent Trustees were advised by their own independent legal counsel with regard to the materials and their responsibilities under relevant laws and regulations.
The Trustees met with representatives from the Advisor’s senior management team, as well as the senior investment professionals responsible for managing the Funds, to discuss the information and the Advisor’s ongoing management of the Funds. The Trustees reviewed the quality of the services provided to the Funds by the Advisor, including information prepared by two separate independent third-party consultants as to each Fund’s performance relative to appropriate index benchmarks as well as fund peer group comparative information requested by the Board. The Trustees reviewed the investment advisory fees payable to the Advisor, and reviewed comparative fee and expense information for similarly situated funds (for both institutional and cash sweep cash management solutions). The Trustees evaluated profitability data for the Advisor, and considered information regarding other benefits the Advisor and its affiliates derived from its relationships with the Funds, including distribution and servicing fees paid to the Adviser’s broker-dealer affiliate in connection with cash sweep services provided to holders of selected classes of shares. The Advisor had proposed to continue for an additional year the existing contractual fee waiver and expense limitation arrangements in order to limit operating expenses. Also, as in the previous year, the Advisor’s affiliated broker-dealer had voluntarily waived receipt of some distribution and service fees payable for cash sweep services for certain retail share classes in order to maintain a positive yield in the dramatically low interest rate environment.
Because of the difficulty associated with evaluating investment performance when other money market funds have differing fee and expense structures, the Trustees reviewed performance data before and after fees and expenses and observed that performance was favorable relative to peer funds. In considering the quality of the services performed for each Fund by the Advisor, the Trustees recognized the research capabilities and fundamental analysis performed by the firm, the portfolio management experience of the Advisor’s staff, the compliance structure and systems and the financial strength of the Advisor and its parent organization. The Trustees were satisfied with the quality and capabilities of the money market fund portfolio management and analyst team and with the overall investment performance of the Funds. The Trustees also recognized and appreciated the strategic commitment that the Advisor and its parent organization were making to cash management products and the Funds, and the financial strength of the organization.
69
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED)
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Based upon their review, the Trustees determined that the advisory fees proposed to be payable to the Advisor were reasonable and fair in light of the nature and quality of services provided under all of the circumstances, and were within the range of what might have been negotiated at arms’ length. The Trustees concluded that it is in the interest of the Funds and their shareholders for the Trustees to approve the continuation of the Agreements, as well as the expense limitation arrangements for the Funds. In arriving at their decision to approve the renewal of the Agreements, the Trustees did not assign relative weights to the factors discussed above or deem any one or group of them to be controlling in and of itself.
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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 period ended September 30, 2010.
NOT FDIC INSURED l NO BANK GUARANTEE l MAY LOSE VALUE
RBC Global Asset Management (U.S.), Inc. serves as investment adviser 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-MM AR 09-10
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RBC Funds
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About Your Annual Report |
This annual report includes detailed information about the Access Capital Community Investment Fund (the “Fund”) including financial statements, performance, and a complete list of holdings.
The Fund compares its performance against the Barclays Capital U.S. Securitized Index and the Barclays Capital U.S. Aggregate Bond Index which are widely used market indices.
We hope the financial information presented will help you evaluate your investment in the Fund. We also encourage you to read your Fund’s prospectus for further detail as to the Fund’s investment policies and risk profile. Fund 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.
Information regarding how your Fund voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available (i) on the Fund’s website at www.rbcgam.us; and (ii) on the Commission’s website at http://www.sec.gov.
A schedule of the Fund’s portfolio holdings will be filed with the Commission for the first and third quarters of each fiscal year on Form N-Q. This information is available on the Commission’s website at http://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room is available by calling 1-202-551-8090.
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Table of Contents |
| 1 | ||||||||||
Portfolio Managers | 4 | |||||||||||
Performance Summary | 5 | |||||||||||
Management Discussion and Analysis | 6 | |||||||||||
Schedule of Portfolio Investments | 9 | |||||||||||
Financial Statements | ||||||||||||
- Statement of Assets and Liabilities | 32 | |||||||||||
- Statement of Operations | 34 | |||||||||||
- Statements of Changes in Net Assets | 35 | |||||||||||
- Statement of Cash Flows | 36 | |||||||||||
Financial Highlights | 38 | |||||||||||
Notes to Financial Statements | 40 | |||||||||||
Report of Independent Registered Public Accounting Firm | 52 | |||||||||||
Other Federal Income Tax Information | 53 | |||||||||||
Management | 54 | |||||||||||
Share Class Information | 58 | |||||||||||
Supplemental Information | 59 | |||||||||||
Approval of Investment Advisory Agreement | 60 |
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Dear Shareholder:
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RBC Funds enjoyed another solid year of providing financial solutions for our shareholders. We understand the important role the Access Capital Community Investment Fund plays in helping our shareholders meet their financial and social goals. It was less than two years ago that investors experienced a market crisis the likes of which we haven’t seen since the Great Depression. Through the recent downturn, the RBC Funds have continued to provide the stability and strength shareholders have come to expect and deserve.
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From a financial perspective, I am pleased to report that the Fund continued to perform as expected during the final six months of our fiscal year as well as for the entire annual period. The Access Capital Community Investment Fund continues to have a positive impact in underserved communities by filling capital gaps. The Fund is concluding its twelfth year of providing returns to shareholders that include both an economic and a social benefit. The Fund invests in debt securities that support community development activities serving low and moderate income individuals and neighborhoods in the United States. The Fund’s investments promote home ownership, affordable rental housing, education, community health centers and small businesses. As of September 30, 2010, Fund shareholders called for community investments in 46 states and U.S. territories. The Fund purchased 611 mortgages for low and moderate income individuals, 820 units of affordable rental housing and provided 11 loans for small business development during the current fiscal year.
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The Fund has also provided solid financial performance for our shareholders as reflected in the highest overall Lipper Leader ranking we can achieve for principal preservation and consistent returns. The Access Capital Community Investment Fund was designated a Lipper Leader in the Preservation category among 4,241 U.S. Fixed Income funds for the Overall period ending 9/30/2010.*The overall calculation is based on an equal-weighted average of percentile ranks for the Preservation metrics over the three-, five-, and ten- year periods.
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One clear result emanating from the market volatility earlier this summer is that any potential in tightening in Federal Reserve monetary policy has been put on hold well into 2011, as the Fed will do everything in its power to avoid derailing a still fragile U.S. economic recovery. Not only has the timing of a potential Fed tightening been delayed, the terminal Fed Funds level priced into the market has been substantially lowered as well. In our view, one of the dangers of prolonging excessive accommodative monetary policy is the possibility it could reignite many of the same excessive risk taking practices that instigated the 2008 financial crisis. With the increasing probability for a new round of quantitative easing before the end of 2011, the Fed has effectively put a cap on potential policy tightening in the short term. We doubt that further quantitative easing, as currently considered, will have a large or sustainable impact on economic growth. In fact, little historical precedent exists that would indicate quantitative easing will prove successful. The policies of today enforce market behaviors that create the potential bubbles of tomorrow. | ||||||||||||
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1 |
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LETTER FROM THE CIO
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While economic activity has shown some important signs of sustainable improvement, the prospects for a future double dip recession have increased during the past six months. That is not our current forecast, however. We believe the half-speed recovery will continue for the foreseeable future and the economy will continue to slowly grind ahead. The damage to the housing and labor markets combined with the painful de-leveraging process that is just getting underway will not allow the economy to return to a normal trend rate of growth. A firming housing market and significant improvements in job creation are necessary precursors before the economic outlook materially improves. We remain wary to judge the health prospects for the U.S. economy given the large amounts of existing and potential new stimulus that is working its way through the system. The most likely scenario for inflation is that it will remain well under control and that deflationary risks are more prevalent in the eyes of policy makers at present. We remain in an environment of sluggish below trend growth, unfavorable pressure on pricing and widespread lack of confidence in the future. | ||||
That said, a modest yet improving economic backdrop combined with strengthening corporate profitability and healthy balance sheets continues to support a strong technical bid for non-Treasury assets. The Fed is largely getting what it wants in this regard, forcing investors to take more risk and flee the safety of higher quality investments. Unfortunately, current fiscal and monetary policies have been largely unsuccessful at getting banks to take more risk with their loan portfolios. New financial reform legislation (Dodd-Frank) and new regulatory guidelines (Basel III) have made it difficult for private lending to materially improve as the banking system continues to deal with its own de-leveraging needs. With more clarity around how much capital banks will need to hold in the future, banks should, at least theoretically, be willing to put more excess capital to work at some point in the year ahead. | ||||
Within the bond market, the Treasury yield curve remains solidly anchored in the short end and we have seen a large flattening occur during the past several quarters as longer rates have moved substantively lower. Volatility has declined following the flash crash as important volatility indices have successfully moved back below their 365 day moving averages. That said, the potential for further risk flares and volatility should remain high as the market looks for economic clarity and we move toward 2011. The market’s quick rebound is indicative of the “Risk On/Risk Off” trading environment that typically accompanies a market lacking fundamental confidence. | ||||
Despite the uncertainty in the markets, several areas of the market where the Access Capital Community Investment Fund regularly deploys capital exhibit attractive risk and reward trade-offs. Agency backed mortgages have cheapened substantially following the conclusion of the first round of quantitative easing and our Community Reinvestment Act (CRA) specified pools appear fundamentally attractive versus high quality “AAA” rated alternatives. Prepayment fears have not allowed the agency mortgage market to participate in the large rally that has pushed Treasury prices so high and absolute yield levels so low. We believe there is a likelihood that underperformance will reverse itself in the year ahead as wider spreads revert closer back to their historical mean. In addition, despite the fundamental credit concerns facing public entities, municipal and government loan valuations present some of the more compelling opportunities for strong absolute and excess relative returns in the current fixed income market. In the months ahead, we expect large supply levels should present the Fund with an | ||||
2 |
LETTER FROM THE CIO
| ![]() | |||
opportunity to finance high impact municipal debt and government loans on an opportunistic basis. | ||||
As always, we will remain steadfast in our goal of preservation of our shareholders’ assets while striving to provide the necessary income and social impact they expect. Thank you for your continued confidence and trust in the RBC Funds. | ||||
Sincerely, | ||||
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John M. Huber, CFA | ||||
Chief Investment Officer, Fixed Income RBC Funds | ||||
Past performance is not a guarantee of future results.
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Lipper Leader scores are subject to change every month and are calculated for the following time periods: 3-year, 5-year, 10-year, and overall. The overall calculation is based on an equal-weighted average of percentile rank for each category metric over three-, five-, and ten-year periods. The top 20% of funds in each classification are rated 5 and are named Lipper Leaders, the next 20% are rated 4, the middle 20% are rated 3, the next 20% are rated 2, and the lowest 20% are rated 1. For the three-year period, the Access Capital Community Investment Fund received a Lipper Leader rating of 5 among 4241 Fixed Income funds. For the five-year period, the Fund received a Lipper Leader rating of 5 among 3624 funds. For the ten-year period, the Fund received a rating of 4 among 2515 funds. All ratings are as of September 30, 2010. |
John Huber Chief Investment Officer Fixed Income | |||
*Lipper ratings for preservation reflect a fund’s historical loss avoidance relative to other funds within the same asset class, as of 9/30/2010. Preservation ratings are relative, rather than absolute measures, and funds named Lipper Leaders for Preservation may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds. | ||||
Each Lipper peer group represents a universe of Funds with similar investment objectives. | ||||
Lipper Analytical Services, Inc. is an independent mutual fund research and rating service. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. Lipper Leader © 2010, Reuters, All Rights Reserved | ||||
Investment in the Fund involves risks including, but not limited to: the effects of leveraging the Fund’s portfolio; concentration in the affordable housing market and related mortgage backed securities; competition for investments; interest rate risk; and use of derivatives. | ||||
| 3 |
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RBC Global Asset Management (U.S.) Inc.(“RBC GAM (US)”) serves as the investment advisor to the Access Capital Community Investment Fund. RBC GAM (US) employs a team approach to the management of the Access Capital Community Investment Fund, with no individual team member being solely responsible for the investment decisions. The Fund’s management team has access to RBC GAM (US)’s investment research and other money management resources.
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John M. Huber, CFA
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John M. Huber, CFA
Senior Managing Director, Chief Investment Officer — Fixed Income
John Huber directs RBC GAM (US)’s fixed income group. John joined RBC GAM (US) in 2004 from Galliard Capital Management where he was a principal and senior portfolio manager, responsible for the firm’s total return fixed income effort. Prior to working for Galliard, John was a portfolio manager for Norwest Investment Management where he began his career in 1990. John received a BA from the University of Iowa and an MBA in Finance from the University of Minnesota, Carlson School of Management. He acts as an advisor to the Carlson Funds Enterprise for the University of Minnesota. John is a CFA charterholder and a member of the CFA Society of Minnesota. He also serves on the Board of the YMCA of Metropolitan Minneapolis.
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Brian Svendahl, CFA
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Brian Svendahl, CFA
Managing Director, Senior Portfolio Manager
Brian Svendahl is a senior portfolio manager leading RBC GAM (US)’s Risk Management Team which monitors various risks within our fixed income products. Brian also has specific research responsibilities for government and agency loans including small business administration and U.S.D.A. programs. Brian joined RBC GAM (US) in 2005 from Wells Fargo Brokerage Services, where he served as senior vice president and risk manager. Prior to that, Brian’s experiences include developing VAR analysis and off balance sheet hedging strategies for Wells Fargo’s Treasury group. Brian has worked in the investment industry since 1992. Brian received a BS in Economics from the University of Minnesota. He also received a BBA in Finance and an MBA from the University of Minnesota, Carlson School of Management. Brian is a CFA charterholder and member of the CFA Society of Minnesota.
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Todd Brux, CFA |
Todd Brux, CFA
Managing Director, Senior Portfolio Manager
Todd Brux co-leads the Rates Research Team in RBC GAM (US)’s fixed income group. Todd has extensive fixed income industry experience and is currently responsible for researching Agency and whole-loan residential mortgage-backed securities as well as commercial mortgage- and asset-backed securities. He also has portfolio management responsibilities for our community investing, mortgage, and opportunistic high income mandates. Before joining RBC GAM (US) in 2004, Todd held senior positions at GMAC-RFC, and was previously a senior investment analyst at Galliard Capital Management. He began his career in the investment industry in 1994. Todd earned a BA in Economics from the University of Wisconsin-Madison. He is a CFA charterholder and a member of the CFA Society of Minnesota. | |||||
4 |
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Average Annual Total Returns as of September 30, 2010
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Access Capital Community Investment Fund | ||||||||||||||||||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | Since Inception | Expense Ratio* | |||||||||||||||||||||||||||
Class A (a) - Including Maximum Sales Charge of 3.75% | 1.10 | % | 4.94 | % | 4.44 | % | 4.79 | % | 4.76 | % | ||||||||||||||||||||||
- At Net Asset Value | 5.02 | % | 6.29 | % | 5.25 | % | 5.19 | % | 5.09 | % | 1.04 | % | ||||||||||||||||||||
Class I (b) - At Net Asset Value | 5.28 | % | 6.43 | % | 5.40 | % | 5.39 | % | 5.37 | % | 0.79 | % | ||||||||||||||||||||
Barclays Capital U. S. Securitized Index (c) | 7.06 | % | 7.21 | % | 6.21 | % | 6.21 | % | 6.08 | % | ||||||||||||||||||||||
Barclays Capital U. S. Aggregate Bond Index (c) | 8.16 | % | 7.42 | % | 6.20 | % | 6.41 | % | 6.11 | % | ||||||||||||||||||||||
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. For performance data current to most recent month-end go to www.rbcgam.us. | ||||||||||||||||||||||||||||||||
The Barclays Capital U.S. Securitized Index is an unmanaged index that tracks the performance of mortgage-backed pass-through securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac, investment-grade bonds and asset-backed securities. | ||||||||||||||||||||||||||||||||
The Barclays Capital U.S. Aggregate Bond Index is an unmanaged index that tracks the performance of a representative list of government, corporate, asset-backed and mortgage-backed securities. | ||||||||||||||||||||||||||||||||
(a) The inception date for Class A shares of the Fund is January 29, 2009. All performance shown for such class of shares prior to its inception date is based on the performance of the Class I shares of the Fund, adjusted to reflect the fees and expenses of Class A shares, as applicable. | ||||||||||||||||||||||||||||||||
(b) Class I commenced operations on July 28, 2008. The performance in the table reflects the performance of Access Capital Strategies Community Investment Fund, Inc., the predecessor to the Fund. From its inception, June 23, 1998, until May 30, 2006, the predecessor fund elected status as a business development company. From May 31, 2006 until July 27, 2008, the predecessor fund operated as a continuously offered closed-end interval management company. If the predecessor fund had operated as an open-end management company, performance may have been adversely affected. Fund performance reflects applicable fee waivers/expense reimbursements which, if excluded, would cause performance to be lower.
(c) You cannot invest directly into the index. |
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* The Fund’s expenses reflect the most recent year end (September 30, 2010). |
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5 |
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Access Capital Community Investment Fund
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Investment Strategy |
Invests in geographically specific debt securities located in portions of the United States designated by Fund Shareholders. The Fund invests primarily in debt instruments supporting the affordable housing and economic development serving low- and moderate- income individuals and communities. Investment securities include government-guaranteed loans, asset-backed securities, particularly mortgage-backed securities, small business loans, and taxable municipal securities.
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Performance |
For the twelve-month period ending September 30, 2010, the Fund had a total return of 5.28% (Class I). That compares to a total return of 7.06% for the Barclays Capital U.S. Securitized Index and 8.16% for the Barclays Capital U.S. Aggregate Bond Index.
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Factors That Made Positive Contributions | ||||||
• The Fund’s investment in CRA eligible agency mortgage pass through securities contributed positively to fund performance as they outperformed similar maturity Treasury debentures during the past twelve-months. | ||||||
• The Fund’s investment in U.S. Agency secured obligations aided relative performance as FNMA and FHLMC DUS pools and USDA obligations performed as we would have hoped and anticipated. | ||||||
• Security selection was also a positive contributor to relative performance during the past-year.
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Factors That Detracted from Relative Returns |
• The Fund cannot invest in non-AAA rated Commercial Mortgage Backed Securities (CMBS), and when AAA rated, would need to meet the community goals for the Fund. | |||||
• The CMBS market returned over 23% in the trailing twelve-month period. As this sector can represent large components of our stated benchmarks, lack of exposure will cause the Fund to lag its benchmark during those periods. The past twelve-months reflect one of those periods. | ||||||
• Municipal credits underperformed risk-free Treasuries for the trailing twelve-month period. The Fund’s allocation to high impact municipal bonds detracted from relative returns for the period in question.
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Fund holdings and sector allocations are subject to change at any time and should not be considered recommendations to buy or sell any security.
Please refer to the Schedule of Portfolio Investments in this report for a complete list of Fund holdings. | ||||||
6 |
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
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Access Capital Community Investment Fund
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Current income and capital appreciation
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| Investment Objective Benchmark | ||||||||||||||
Barclays Capital U.S. Securitized Index
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Barclays Capital U.S. Aggregate Bond Index
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| Asset Allocation (as of 9/30/10) (% of fund’s investments) | ||||||||||||||
Fannie Mae Series 2004-T7, | 2.23% | Fannie Mae (TBA), 3.52%, 12/2/30 | 1.42% |
Top Ten Holdings (as of 9/30/10) (% of fund’s net assets) | ||||||||||||
Fannie Mae Pool #463212, | 2.07% | Massachusetts Housing Finance Agency Revenue, Series B, 6.53%, 12/1/27 | 1.32% | |||||||||||||
Massachusetts Housing | 1.99% | Community Reinvestment Revenue Notes, 3.98%, 8/1/35 | 1.31% | |||||||||||||
Fannie Mae Pool #387590, | 1.90% | Ginnie Mae Pool #713519, 6.00%, 7/1/39 | 1.00% | |||||||||||||
Fannie Mae Pool #465537, | 1.51% | Fannie Mae Pool #663159, 5.00%, 7/1/32 | 0.96% | |||||||||||||
*A listing of all portfolio holdings can be found beginning on page 9.
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7 |
MANAGEMENT DISCUSSION AND ANALYSIS (UNAUDITED)
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Access Capital Community Investment Fund
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Growth of $10,000 Initial Investment Over 10 Years |
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The graph reflects an initial investment of $10,000 over a 10 year period 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 do 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. | ||||||
8 |
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund
September 30, 2010
Principal Amount | Value | |||||
Municipal Bonds — 3.39% | ||||||
Arizona — 0.09% | ||||||
$ 482,629 | Phoenix & Pima County Industrial Development Authority Revenue, Series 2A, 5.45%, 3/1/39, (Credit Support: Ginnie Mae, Fannie Mae, Freddie Mac), Callable 9/1/16 @ 103 | $ | 515,911 | |||
California — 0.46% | ||||||
390,000 | California Rural Home Mortgage Finance Authority Revenue, Series C, 5.40%, 8/1/35, (Credit Support: Ginnie Mae, Fannie Mae, Freddie Mac), Callable 2/1/17 @ 104 | 413,451 | ||||
975,000 | California Statewide Communities Development Authority Revenue, Series B, 5.25%, 10/20/42, (Credit Support: Ginnie Mae), Callable 10/20/17 @ 102 | 1,002,563 | ||||
385,000 | Camarillo California Community Development, Community Tax Allocation (Housing Set-Aside), Series A-T, 5.26%, 9/1/16, (Credit Support: AMBAC) | 390,013 | ||||
740,000 | Sacramento County Housing Authority Revenue, Series B-1, 5.00%, 1/20/48, (Credit Support: Ginnie Mae), Callable 7/20/17 @ 102 |
| 743,604
|
| ||
2,549,631 | ||||||
Guam — 0.03% | ||||||
140,000 | Guam Power Authority Revenue OID, Series A, 5.00%, 10/1/24, (Credit Support: AMBAC) | 137,103 | ||||
Massachusetts — 1.32% | ||||||
6,790,000 | Massachusetts Housing Finance Agency Revenue, Series B, 6.53%, 12/1/27, (Credit Support: NATL-RE,IBC), Callable 6/1/17 @ 100 | 7,218,992 | ||||
Mississippi — 0.02% | ||||||
100,000 | Mississippi Home Corp. Multi Family Revenue OID, 5.35%, 8/20/48, (Credit Support: Ginnie Mae, Fannie Mae), Callable 9/1/18 @ 105 | 104,091 | ||||
New York — 0.75% | ||||||
665,000 | New York City Housing Development Corp. Revenue, Series A, 4.15%, 7/15/15, (Credit Support: Fannie Mae) | 686,081 | ||||
700,000 | New York State Housing Finance Agency Revenue, 4.50%, 11/15/27, (Credit Support: Fannie Mae), Callable 11/15/16 @ 100 | 695,835 |
9
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$1,000,000 | New York State Housing Finance Agency Revenue, Series A, 4.65%, 11/15/38, (Credit Support: Fannie Mae), Callable 11/15/16 @ 100 | $ | 1,004,550 | |||
1,620,000 | Suffolk County Industrial Development Agency Revenue, 5.70%, 12/1/26, (LOC: Bank of New York), Callable 12/1/11 @ 102 | 1,712,923 | ||||
4,099,389 | ||||||
Ohio — 0.10% | ||||||
560,000 | Ohio Housing Finance Agency Refunding Revenue, 5.32%, 9/1/38, (Credit Support: Ginnie Mae, Fannie Mae), Callable 8/1/16 @ 100 | 570,410 | ||||
Texas — 0.20% | ||||||
1,085,000 | Texas Department of Housing & Community Affairs Revenue, 5.13%, 12/1/38, (Credit Support: Fannie Mae)(a) | 1,117,724 | ||||
Utah — 0.42% | ||||||
417,000 | Utah Housing Corp. Multi Family Mortgage Revenue, 7.25%, 1/20/26, (Credit Support: Ginnie Mae), Callable 7/20/11 @ 102 | 430,778 | ||||
105,000 | Utah Housing Corp. Single Family Mortgage Revenue, Series B-2, Class 1, 4.33%, 1/1/18, Callable 1/1/17 @ 100 | 104,621 | ||||
1,725,000 | Utah Housing Corp. Single Family Mortgage Revenue, Series C-2, Class 1, 4.85%, 1/1/18, Callable 1/1/17 @ 100 | 1,761,673 | ||||
2,297,072 | ||||||
Total Municipal Bonds | 18,610,323 | |||||
(Cost $17,725,787) | ||||||
Corporate Bonds — 0.53% | ||||||
Diversified Financials — 0.53% | ||||||
575,000 | Atlantic Marine Corps Communities LLC 5.34%, 12/1/50 (Credit Support: MBIA)(b) | 510,629 | ||||
1,395,000 | Fort Knox Military Housing Privatization Project 0.60%, 2/15/52 (Credit Support: AMBAC)(a)(b)(c) | 965,249 | ||||
2,000,000 | Pacific Beacon LLC 0.93%, 7/15/51 (Credit Support: MBIA)(a)(b)(c) | 1,421,469 | ||||
Total Corporate Bonds | 2,897,347 | |||||
(Cost $3,863,373) | ||||||
U.S. Government Agency Backed Mortgages — 104.09% | ||||||
Fannie Mae — 77.15% | ||||||
7,600,000 | (TBA), 3.52%, 12/2/30 | 7,772,170 |
10
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$4,200,000 | (TBA), 4.00%, 10/1/40 | $ | 4,316,811 | |||
2,780,000 | (TBA), 4.00%, 9/24/40 | 2,857,317 | ||||
26,016 | Pool #253174, 7.25%, 12/1/29 | 29,541 | ||||
135,658 | Pool #253212, 7.50%, 1/1/30 | 154,796 | ||||
39,906 | Pool #253214, 7.00%, 1/1/15 | 42,748 | ||||
112,460 | Pool #257611, 5.50%, 5/1/38 | 121,332 | ||||
52,352 | Pool #257612, 5.00%, 5/1/38 | 56,397 | ||||
391,160 | Pool #257613, 5.50%, 6/1/38 | 420,070 | ||||
288,748 | Pool #257631, 6.00%, 7/1/38 | 316,780 | ||||
453,874 | Pool #257632, 5.50%, 7/1/38 | 485,150 | ||||
295,065 | Pool #257649, 5.50%, 7/1/38 | 317,976 | ||||
92,329 | Pool #257656, 6.00%, 8/1/38 | 102,503 | ||||
459,848 | Pool #257663, 5.50%, 8/1/38 | 495,796 | ||||
641,746 | Pool #257857, 6.00%, 12/1/37 | 695,341 | ||||
189,548 | Pool #257868, 6.50%, 11/1/37 | 208,478 | ||||
188,598 | Pool #257869, 5.50%, 12/1/37 | 204,419 | ||||
474,313 | Pool #257890, 5.50%, 2/1/38 | 511,142 | ||||
2,197,661 | Pool #257892, 5.50%, 2/1/38 | 2,349,101 | ||||
599,055 | Pool #257893, 6.00%, 2/1/38 | 646,837 | ||||
137,896 | Pool #257897, 5.50%, 2/1/38 | 150,593 | ||||
230,270 | Pool #257898, 6.00%, 2/1/38 | 251,342 | ||||
100,300 | Pool #257899, 5.00%, 2/1/38 | 106,576 | ||||
107,605 | Pool #257900, 5.00%, 1/1/38 | 115,508 | ||||
123,860 | Pool #257901, 5.50%, 2/1/38 | 133,391 | ||||
55,343 | Pool #257902, 6.00%, 2/1/38 | 61,434 | ||||
293,551 | Pool #257903, 5.50%, 2/1/38 | 315,063 | ||||
204,797 | Pool #257904, 6.00%, 2/1/38 | 223,504 | ||||
88,830 | Pool #257913, 5.50%, 1/1/38 | 95,222 | ||||
129,607 | Pool #257914, 6.00%, 1/1/38 | 141,326 | ||||
114,772 | Pool #257919, 6.00%, 2/1/38 | 125,371 | ||||
217,606 | Pool #257926, 5.50%, 3/1/38 | 234,497 | ||||
162,838 | Pool #257928, 6.00%, 3/1/38 | 176,830 | ||||
303,873 | Pool #257942, 5.50%, 4/1/38 | 327,468 | ||||
105,498 | Pool #257943, 6.00%, 4/1/38 | 115,725 | ||||
99,712 | Pool #257973, 5.00%, 5/1/38 | 105,946 | ||||
591,435 | Pool #257974, 5.50%, 4/1/38 | 632,190 | ||||
85,283 | Pool #257995, 6.00%, 7/1/38 | 93,554 | ||||
73,552 | Pool #258022, 5.50%, 5/1/34 | 79,976 | ||||
99,443 | Pool #258027, 5.00%, 5/1/34 | 105,495 | ||||
27,119 | Pool #258028, 5.00%, 5/1/34 | 29,163 | ||||
116,755 | Pool #258030, 5.00%, 5/1/34 | 123,620 | ||||
75,321 | Pool #258031, 5.00%, 5/1/34 | 80,558 | ||||
48,498 | Pool #258051, 5.00%, 5/1/34 | 51,870 | ||||
378,401 | Pool #258070, 5.00%, 6/1/34 | 400,950 | ||||
165,450 | Pool #258090, 5.00%, 6/1/34 | 174,884 | ||||
171,604 | Pool #258093, 5.50%, 6/1/34 | 184,369 | ||||
50,249 | Pool #258121, 5.50%, 6/1/34 | 54,657 | ||||
255,199 | Pool #258152, 5.50%, 8/1/34 | 277,900 |
11
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$ 459,827 | Pool #258157, 5.00%, 8/1/34 | $ | 487,228 | |||
192,721 | Pool #258163, 5.50%, 8/1/34 | 206,987 | ||||
137,929 | Pool #258166, 5.50%, 9/1/34 | 147,937 | ||||
223,127 | Pool #258171, 5.50%, 10/1/34 | 239,317 | ||||
434,770 | Pool #258173, 5.50%, 10/1/34 | 466,317 | ||||
300,178 | Pool #258180, 5.00%, 10/1/34 | 318,066 | ||||
85,127 | Pool #258185, 5.50%, 10/1/34 | 92,590 | ||||
167,552 | Pool #258186, 5.50%, 11/1/34 | 182,332 | ||||
146,100 | Pool #258187, 5.50%, 11/1/34 | 159,069 | ||||
760,056 | Pool #258188, 5.50%, 11/1/34 | 815,205 | ||||
233,325 | Pool #258198, 5.50%, 10/1/34 | 250,255 | ||||
94,324 | Pool #258199, 5.50%, 9/1/34 | 101,348 | ||||
233,498 | Pool #258203, 5.50%, 10/1/34 | 250,441 | ||||
154,481 | Pool #258210, 5.50%, 11/1/34 | 165,690 | ||||
110,102 | Pool #258221, 5.50%, 11/1/34 | 118,222 | ||||
48,084 | Pool #258222, 5.00%, 11/1/34 | 51,413 | ||||
135,380 | Pool #258224, 5.50%, 12/1/34 | 145,203 | ||||
143,051 | Pool #258225, 5.50%, 11/1/34 | 153,431 | ||||
283,583 | Pool #258236, 5.00%, 12/1/34 | 300,482 | ||||
174,489 | Pool #258237, 5.50%, 1/1/35 | 186,605 | ||||
1,017,798 | Pool #258238, 5.00%, 1/1/35 | 1,078,449 | ||||
44,876 | Pool #258245, 5.50%, 12/1/34 | 48,893 | ||||
114,143 | Pool #258249, 5.00%, 12/1/34 | 121,276 | ||||
97,501 | Pool #258250, 5.50%, 11/1/34 | 105,065 | ||||
152,592 | Pool #258251, 5.50%, 1/1/35 | 164,299 | ||||
80,572 | Pool #258252, 5.50%, 12/1/34 | 87,796 | ||||
230,355 | Pool #258254, 5.50%, 12/1/34 | 247,069 | ||||
137,829 | Pool #258258, 5.00%, 1/1/35 | 145,698 | ||||
138,150 | Pool #258301, 5.50%, 2/1/35 | 148,528 | ||||
192,998 | Pool #258302, 5.00%, 3/1/35 | 204,016 | ||||
193,570 | Pool #258303, 5.00%, 2/1/35 | 206,045 | ||||
406,665 | Pool #258305, 5.00%, 3/1/35 | 429,882 | ||||
82,259 | Pool #258312, 5.50%, 2/1/35 | 89,629 | ||||
318,533 | Pool #258324, 5.50%, 4/1/35 | 340,651 | ||||
388,046 | Pool #258333, 5.00%, 4/1/35 | 410,200 | ||||
342,548 | Pool #258336, 5.00%, 4/1/35 | 362,104 | ||||
256,798 | Pool #258339, 5.00%, 4/1/35 | 271,459 | ||||
75,371 | Pool #258340, 5.00%, 3/1/35 | 80,812 | ||||
100,537 | Pool #258342, 5.00%, 4/1/35 | 106,220 | ||||
232,933 | Pool #258346, 5.00%, 3/1/35 | 246,232 | ||||
1,078,086 | Pool #258347, 5.00%, 4/1/35 | 1,139,634 | ||||
245,180 | Pool #258388, 5.50%, 6/1/35 | 263,515 | ||||
489,072 | Pool #258392, 5.00%, 6/1/35 | 516,993 | ||||
541,774 | Pool #258393, 5.00%, 5/1/35 | 572,546 | ||||
274,512 | Pool #258394, 5.00%, 5/1/35 | 290,184 | ||||
395,969 | Pool #258395, 5.50%, 6/1/35 | 423,462 | ||||
271,195 | Pool #258402, 5.00%, 6/1/35 | 288,074 | ||||
73,762 | Pool #258403, 5.00%, 6/1/35 | 78,969 |
12
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$ 99,297 | Pool #258404, 5.00%, 6/1/35 | $ | 104,814 | |||
85,608 | Pool #258406, 5.50%, 5/1/35 | 93,148 | ||||
49,565 | Pool #258408, 5.00%, 5/1/34 | 52,773 | ||||
200,972 | Pool #258409, 5.00%, 5/1/35 | 213,616 | ||||
57,380 | Pool #258410, 5.00%, 4/1/35 | 61,429 | ||||
118,776 | Pool #258411, 5.50%, 5/1/35 | 129,091 | ||||
157,245 | Pool #258422, 5.00%, 6/1/35 | 166,222 | ||||
164,109 | Pool #258428, 5.00%, 7/1/35 | 173,478 | ||||
90,752 | Pool #258439, 5.50%, 6/1/35 | 98,588 | ||||
401,305 | Pool #258448, 5.00%, 8/1/35 | 424,215 | ||||
403,482 | Pool #258450, 5.50%, 8/1/35 | 431,498 | ||||
55,575 | Pool #258451, 5.50%, 7/1/35 | 60,509 | ||||
160,808 | Pool #258454, 5.50%, 7/1/35 | 171,973 | ||||
336,900 | Pool #258456, 5.00%, 8/1/35 | 356,133 | ||||
560,483 | Pool #258460, 5.00%, 8/1/35 | 592,481 | ||||
162,769 | Pool #258470, 5.00%, 7/1/35 | 172,062 | ||||
97,333 | Pool #258479, 5.50%, 7/1/35 | 104,941 | ||||
339,897 | Pool #258552, 5.00%, 11/1/35 | 359,302 | ||||
59,470 | Pool #258555, 5.00%, 10/1/35 | 63,641 | ||||
112,283 | Pool #258556, 5.50%, 11/1/35 | 120,686 | ||||
123,580 | Pool #258562, 5.50%, 11/1/35 | 134,704 | ||||
113,339 | Pool #258569, 5.00%, 10/1/35 | 120,316 | ||||
996,024 | Pool #258571, 5.50%, 11/1/35 | 1,065,182 | ||||
160,262 | Pool #258595, 5.50%, 12/1/35 | 171,426 | ||||
116,492 | Pool #258598, 5.00%, 12/1/35 | 124,009 | ||||
100,699 | Pool #258599, 5.50%, 1/1/36 | 108,638 | ||||
262,513 | Pool #258600, 6.00%, 1/1/36 | 285,178 | ||||
111,248 | Pool #258610, 5.50%, 8/1/35 | 120,270 | ||||
788,744 | Pool #258627, 5.50%, 2/1/36 | 847,454 | ||||
146,924 | Pool #258633, 5.50%, 12/1/35 | 159,734 | ||||
389,019 | Pool #258634, 5.50%, 2/1/36 | 421,836 | ||||
536,351 | Pool #258644, 5.50%, 2/1/36 | 574,430 | ||||
96,632 | Pool #258650, 5.50%, 1/1/36 | 105,355 | ||||
671,281 | Pool #258658, 5.50%, 3/1/36 | 718,940 | ||||
196,602 | Pool #258721, 5.50%, 4/1/36 | 213,392 | ||||
147,394 | Pool #258736, 5.00%, 3/1/36 | 156,465 | ||||
138,218 | Pool #258737, 5.50%, 12/1/35 | 150,282 | ||||
89,021 | Pool #258763, 6.00%, 5/1/36 | 96,813 | ||||
228,744 | Pool #258767, 6.00%, 6/1/36 | 248,212 | ||||
221,638 | Pool #258779, 6.00%, 5/1/36 | 240,563 | ||||
53,526 | Pool #259004, 8.00%, 2/1/30 | 62,031 | ||||
37,067 | Pool #259011, 8.00%, 3/1/30 | 42,957 | ||||
63,419 | Pool #259030, 8.00%, 4/1/30 | 73,496 | ||||
4,979 | Pool #259178, 6.50%, 3/1/31 | 5,565 | ||||
215,514 | Pool #259181, 6.50%, 3/1/31 | 240,876 | ||||
113,362 | Pool #259187, 6.50%, 4/1/31 | 126,703 | ||||
90,706 | Pool #259190, 6.50%, 4/1/31 | 101,380 | ||||
165,499 | Pool #259191, 6.50%, 4/1/31 | 184,975 |
13
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$143,075 | Pool #259201, 6.50%, 4/1/31 | $ | 159,912 | |||
36,443 | Pool #259213, 6.50%, 5/1/31 | 40,754 | ||||
39,342 | Pool #259284, 6.50%, 8/1/31 | 43,972 | ||||
44,657 | Pool #259306, 6.50%, 9/1/31 | 49,912 | ||||
86,767 | Pool #259309, 6.50%, 10/1/31 | 96,978 | ||||
218,601 | Pool #259316, 6.50%, 11/1/31 | 244,327 | ||||
174,532 | Pool #259327, 6.00%, 11/1/31 | 192,161 | ||||
119,906 | Pool #259369, 6.00%, 1/1/32 | 132,018 | ||||
79,463 | Pool #259372, 6.00%, 1/1/32 | 87,489 | ||||
77,404 | Pool #259376, 6.00%, 1/1/32 | 85,077 | ||||
39,830 | Pool #259378, 6.00%, 12/1/31 | 43,854 | ||||
88,088 | Pool #259391, 6.00%, 1/1/32 | 96,986 | ||||
97,127 | Pool #259392, 6.50%, 1/1/32 | 108,375 | ||||
111,912 | Pool #259393, 6.00%, 1/1/32 | 123,006 | ||||
144,115 | Pool #259397, 6.00%, 2/1/32 | 158,402 | ||||
52,954 | Pool #259398, 6.50%, 2/1/32 | 59,086 | ||||
84,571 | Pool #259440, 6.50%, 4/1/32 | 94,365 | ||||
97,900 | Pool #259560, 6.00%, 9/1/32 | 107,606 | ||||
131,533 | Pool #259590, 5.50%, 11/1/32 | 141,406 | ||||
44,621 | Pool #259599, 6.00%, 10/1/32 | 49,045 | ||||
101,492 | Pool #259607, 5.50%, 11/1/32 | 109,110 | ||||
65,539 | Pool #259610, 5.50%, 11/1/32 | 70,458 | ||||
281,523 | Pool #259611, 5.50%, 11/1/32 | 302,653 | ||||
80,137 | Pool #259612, 5.50%, 11/1/32 | 86,152 | ||||
223,284 | Pool #259614, 6.00%, 11/1/32 | 245,420 | ||||
113,109 | Pool #259623, 5.50%, 12/1/32 | 121,599 | ||||
100,135 | Pool #259634, 5.50%, 12/1/32 | 107,651 | ||||
74,741 | Pool #259655, 5.50%, 2/1/33 | 80,304 | ||||
377,118 | Pool #259659, 5.50%, 2/1/33 | 405,189 | ||||
168,818 | Pool #259667, 5.50%, 2/1/33 | 181,384 | ||||
41,432 | Pool #259671, 5.50%, 2/1/33 | 44,516 | ||||
174,298 | Pool #259686, 5.50%, 3/1/33 | 187,272 | ||||
50,773 | Pool #259722, 5.00%, 5/1/33 | 53,910 | ||||
152,322 | Pool #259723, 5.00%, 5/1/33 | 161,732 | ||||
61,998 | Pool #259724, 5.00%, 5/1/33 | 65,800 | ||||
360,897 | Pool #259725, 5.00%, 5/1/33 | 383,192 | ||||
77,972 | Pool #259726, 5.00%, 5/1/33 | 82,789 | ||||
216,374 | Pool #259728, 5.00%, 6/1/33 | 229,742 | ||||
133,462 | Pool #259729, 5.00%, 6/1/33 | 141,707 | ||||
170,763 | Pool #259731, 5.00%, 6/1/33 | 181,313 | ||||
140,655 | Pool #259733, 5.50%, 6/1/33 | 151,124 | ||||
81,551 | Pool #259734, 5.50%, 5/1/33 | 87,621 | ||||
374,922 | Pool #259748, 5.00%, 6/1/33 | 398,084 | ||||
210,436 | Pool #259753, 5.00%, 7/1/33 | 223,436 | ||||
80,358 | Pool #259757, 5.00%, 6/1/33 | 85,322 | ||||
557,130 | Pool #259761, 5.00%, 6/1/33 | 591,548 | ||||
290,438 | Pool #259764, 5.00%, 7/1/33 | 308,381 | ||||
127,640 | Pool #259765, 5.00%, 7/1/33 | 135,525 |
14
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$ 193,302 | Pool #259776, 5.00%, 6/1/33 | $ | 205,244 | |||
153,063 | Pool #259777, 5.00%, 7/1/33 | 162,519 | ||||
170,863 | Pool #259779, 5.00%, 7/1/33 | 181,419 | ||||
113,253 | Pool #259780, 5.00%, 7/1/33 | 120,250 | ||||
103,263 | Pool #259781, 5.00%, 7/1/33 | 109,642 | ||||
111,299 | Pool #259782, 5.00%, 7/1/33 | 118,175 | ||||
63,154 | Pool #259789, 5.00%, 7/1/33 | 67,056 | ||||
116,148 | Pool #259807, 5.00%, 8/1/33 | 123,324 | ||||
151,095 | Pool #259809, 5.00%, 8/1/33 | 160,429 | ||||
669,329 | Pool #259816, 5.00%, 8/1/33 | 710,679 | ||||
35,066 | Pool #259819, 5.00%, 8/1/33 | 37,232 | ||||
91,149 | Pool #259820, 5.00%, 8/1/33 | 96,780 | ||||
252,815 | Pool #259821, 5.00%, 7/1/33 | 268,433 | ||||
459,006 | Pool #259830, 5.00%, 8/1/33 | 487,363 | ||||
509,135 | Pool #259848, 5.00%, 9/1/33 | 540,589 | ||||
135,739 | Pool #259862, 5.50%, 9/1/33 | 145,842 | ||||
89,716 | Pool #259867, 5.50%, 10/1/33 | 96,394 | ||||
284,295 | Pool #259869, 5.50%, 10/1/33 | 305,456 | ||||
100,932 | Pool #259872, 5.50%, 11/1/33 | 108,445 | ||||
117,548 | Pool #259873, 5.50%, 10/1/33 | 126,298 | ||||
146,603 | Pool #259875, 5.50%, 10/1/33 | 157,515 | ||||
87,129 | Pool #259876, 5.50%, 10/1/33 | 93,615 | ||||
219,909 | Pool #259879, 5.50%, 10/1/33 | 236,278 | ||||
130,141 | Pool #259884, 5.50%, 11/1/33 | 139,828 | ||||
40,849 | Pool #259904, 5.50%, 11/1/33 | 43,889 | ||||
316,247 | Pool #259906, 5.50%, 11/1/33 | 339,787 | ||||
122,978 | Pool #259908, 5.50%, 11/1/33 | 132,131 | ||||
143,936 | Pool #259926, 5.50%, 12/1/33 | 154,717 | ||||
63,189 | Pool #259928, 5.50%, 12/1/33 | 68,727 | ||||
308,801 | Pool #259930, 5.00%, 11/1/33 | 327,878 | ||||
96,388 | Pool #259936, 5.50%, 11/1/33 | 103,563 | ||||
226,250 | Pool #259938, 5.50%, 12/1/33 | 243,091 | ||||
20,512 | Pool #259939, 5.50%, 11/1/33 | 22,039 | ||||
130,186 | Pool #259944, 5.50%, 1/1/34 | 139,633 | ||||
107,556 | Pool #259946, 5.50%, 12/1/33 | 115,606 | ||||
190,852 | Pool #259961, 5.50%, 3/1/34 | 204,700 | ||||
220,989 | Pool #259976, 5.00%, 3/1/34 | 233,905 | ||||
143,579 | Pool #259977, 5.00%, 3/1/34 | 152,135 | ||||
47,977 | Pool #259998, 5.00%, 3/1/34 | 51,342 | ||||
736,295 | Pool #380307, 6.53%, 6/1/16 | 803,145 | ||||
624,597 | Pool #381985, 7.97%, 9/1/17 | 724,070 | ||||
560,390 | Pool #382373, 7.58%, 5/1/18 | 653,870 | ||||
606,355 | Pool #383765, 6.70%, 6/1/19 | 691,877 | ||||
1,097,485 | Pool #383783, 6.38%, 5/1/11 | 1,106,687 | ||||
2,378,137 | Pool #386602, 4.66%, 10/1/13 | 2,564,496 | ||||
4,627,716 | Pool #386608, 5.37%, 11/1/21 | 5,106,903 | ||||
2,688,214 | Pool #386641, 5.80%, 12/1/33 | 2,995,458 | ||||
708,859 | Pool #386674, 5.51%, 11/1/21 | 783,921 |
15
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$ 3,620,241 | Pool #387374, 5.60%, 5/1/23 | $ | 4,050,240 | |||
895,065 | Pool #387446, 5.22%, 6/1/20 | 1,001,858 | ||||
923,926 | Pool #387472, 4.89%, 6/1/15 | 1,027,494 | ||||
9,328,850 | Pool #387590, 4.90%, 9/1/15 | 10,404,748 | ||||
642,114 | Pool #462834, 4.70%, 2/1/17(c) | 712,567 | ||||
10,371,258 | Pool #463212, 4.68%, 8/1/19(c) | 11,376,415 | ||||
7,706,102 | Pool #465537, 4.20%, 7/1/20 | 8,270,014 | ||||
760,000 | Pool #465946, 3.61%, 9/1/20 | 780,921 | ||||
261,712 | Pool #557295, 7.00%, 12/1/29 | 296,669 | ||||
35,307 | Pool #575886, 7.50%, 1/1/31 | 40,312 | ||||
98,249 | Pool #576445, 6.00%, 1/1/31 | 108,173 | ||||
42,804 | Pool #576520, 5.50%, 3/1/16 | 46,096 | ||||
55,149 | Pool #577906, 6.50%, 4/1/31 | 61,639 | ||||
236,497 | Pool #579402, 6.50%, 4/1/31 | 264,476 | ||||
288,800 | Pool #583728, 6.50%, 6/1/31 | 322,787 | ||||
231,099 | Pool #585148, 6.50%, 7/1/31 | 258,296 | ||||
72,474 | Pool #590931, 6.50%, 7/1/31 | 81,048 | ||||
82,018 | Pool #590932, 6.50%, 7/1/31 | 91,670 | ||||
60,771 | Pool #591063, 6.50%, 7/1/31 | 67,923 | ||||
299,273 | Pool #601865, 6.50%, 4/1/31 | 335,241 | ||||
160,459 | Pool #601868, 6.00%, 7/1/29 | 177,068 | ||||
270,582 | Pool #607611, 6.50%, 11/1/31 | 302,425 | ||||
131,793 | Pool #613125, 6.50%, 10/1/31 | 147,303 | ||||
92,379 | Pool #624103, 6.00%, 2/1/32 | 101,711 | ||||
500,670 | Pool #634271, 6.50%, 5/1/32 | 558,651 | ||||
229,638 | Pool #640146, 5.00%, 12/1/17 | 245,080 | ||||
156,228 | Pool #644232, 6.50%, 6/1/32 | 174,614 | ||||
122,094 | Pool #644432, 6.50%, 7/1/32 | 136,234 | ||||
53,204 | Pool #644437, 6.50%, 6/1/32 | 59,365 | ||||
229,011 | Pool #647461, 6.00%, 6/1/32 | 251,715 | ||||
121,163 | Pool #657250, 6.00%, 10/1/32 | 133,175 | ||||
4,942,430 | Pool #663159, 5.00%, 7/1/32 | 5,240,659 | ||||
106,129 | Pool #666206, 5.50%, 9/1/32 | 114,095 | ||||
199,191 | Pool #670278, 5.50%, 11/1/32 | 214,142 | ||||
251,317 | Pool #676702, 5.50%, 11/1/32 | 270,181 | ||||
64,996 | Pool #677591, 5.50%, 12/1/32 | 69,875 | ||||
304,741 | Pool #681819, 5.50%, 1/1/33 | 327,424 | ||||
910,632 | Pool #681883, 6.00%, 3/1/33 | 998,633 | ||||
358,966 | Pool #683087, 5.00%, 1/1/18 | 383,104 | ||||
332,830 | Pool #684570, 5.00%, 12/1/32 | 352,913 | ||||
248,728 | Pool #684644, 4.50%, 6/1/18 | 264,190 | ||||
446,884 | Pool #686542, 5.50%, 3/1/33 | 480,427 | ||||
132,845 | Pool #686544, 5.50%, 2/1/33 | 142,817 | ||||
389,703 | Pool #686565, 5.50%, 4/1/33 | 418,711 | ||||
385,457 | Pool #689034, 5.00%, 5/1/33 | 409,270 | ||||
246,356 | Pool #689667, 5.50%, 4/1/33 | 264,847 | ||||
323,688 | Pool #695960, 5.00%, 1/1/33 | 343,219 | ||||
753,096 | Pool #695961, 5.50%, 1/1/33 | 809,623 |
16
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$ 232,196 | Pool #695962, 6.00%, 11/1/32 | $ | 255,216 | |||
726,554 | Pool #696407, 5.50%, 4/1/33 | 780,635 | ||||
2,173,134 | Pool #702478, 5.50%, 6/1/33 | 2,334,889 | ||||
750,722 | Pool #702479, 5.00%, 6/1/33 | 797,101 | ||||
470,237 | Pool #703210, 5.50%, 9/1/32 | 505,533 | ||||
221,564 | Pool #705576, 5.50%, 5/1/33 | 238,056 | ||||
1,193,916 | Pool #720025, 5.00%, 8/1/33 | 1,267,674 | ||||
1,293,849 | Pool #723066, 5.00%, 4/1/33 | 1,373,780 | ||||
564,512 | Pool #723067, 5.50%, 5/1/33 | 606,531 | ||||
787,928 | Pool #723068, 4.50%, 5/1/33 | 825,363 | ||||
632,532 | Pool #723070, 4.50%, 5/1/33 | 666,142 | ||||
834,943 | Pool #723328, 5.00%, 9/1/33 | 886,525 | ||||
767,093 | Pool #727311, 4.50%, 9/1/33 | 807,853 | ||||
2,877,449 | Pool #727312, 5.00%, 9/1/33 | 3,055,212 | ||||
514,805 | Pool #727315, 6.00%, 10/1/33 | 564,555 | ||||
1,258,988 | Pool #738589, 5.00%, 9/1/33 | 1,336,766 | ||||
436,227 | Pool #738683, 5.00%, 9/1/33 | 463,176 | ||||
1,012,037 | Pool #739269, 5.00%, 9/1/33 | 1,074,558 | ||||
441,983 | Pool #743595, 5.50%, 10/1/33 | 474,882 | ||||
306,033 | Pool #748041, 4.50%, 10/1/33 | 322,294 | ||||
967,438 | Pool #749891, 5.00%, 9/1/33 | 1,027,205 | ||||
684,331 | Pool #749897, 4.50%, 9/1/33 | 720,693 | ||||
408,240 | Pool #750984, 5.00%, 12/1/18 | 435,691 | ||||
393,873 | Pool #751008, 5.00%, 12/1/18 | 420,359 | ||||
640,770 | Pool #753533, 5.00%, 11/1/33 | 680,355 | ||||
201,283 | Pool #755679, 6.00%, 1/1/34 | 220,544 | ||||
269,592 | Pool #755745, 5.00%, 1/1/34 | 285,665 | ||||
332,781 | Pool #755746, 5.50%, 12/1/33 | 357,552 | ||||
441,972 | Pool #763551, 5.50%, 3/1/34 | 474,041 | ||||
1,205,897 | Pool #763820, 5.50%, 1/1/34 | 1,293,396 | ||||
574,129 | Pool #763824, 5.00%, 3/1/34 | 609,261 | ||||
496,513 | Pool #765216, 5.00%, 1/1/19 | 530,210 | ||||
629,360 | Pool #765217, 4.50%, 1/1/19 | 668,485 | ||||
462,887 | Pool #765306, 5.00%, 2/1/19 | 494,303 | ||||
127,624 | Pool #770099, 5.50%, 2/1/34 | 136,885 | ||||
215,486 | Pool #773084, 4.50%, 3/1/19 | 228,882 | ||||
394,149 | Pool #773091, 4.00%, 3/1/19 | 417,446 | ||||
243,107 | Pool #773096, 4.50%, 3/1/19 | 258,219 | ||||
638,751 | Pool #773175, 5.00%, 5/1/34 | 676,815 | ||||
579,754 | Pool #773476, 5.50%, 7/1/19 | 626,878 | ||||
629,295 | Pool #773547, 5.00%, 5/1/34 | 666,795 | ||||
677,313 | Pool #773553, 5.00%, 4/1/34 | 717,675 | ||||
1,098,914 | Pool #773568, 5.50%, 5/1/34 | 1,178,650 | ||||
473,431 | Pool #773575, 6.00%, 7/1/34 | 516,815 | ||||
490,225 | Pool #776849, 5.00%, 11/1/34 | 519,438 | ||||
864,780 | Pool #776850, 5.50%, 11/1/34 | 927,528 | ||||
387,793 | Pool #776851, 6.00%, 10/1/34 | 423,329 | ||||
854,364 | Pool #777444, 5.50%, 5/1/34 | 916,356 |
17
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$2,830,808 | Pool #777621, 5.00%, 2/1/34 | $ | 3,005,690 | |||
465,168 | Pool #781437, 6.00%, 8/1/34 | 507,795 | ||||
534,368 | Pool #781741, 6.00%, 9/1/34 | 583,337 | ||||
516,786 | Pool #781907, 5.00%, 2/1/21 | 551,850 | ||||
917,313 | Pool #781954, 5.00%, 6/1/34 | 971,976 | ||||
793,735 | Pool #781959, 5.50%, 6/1/34 | 851,328 | ||||
664,614 | Pool #781960, 5.50%, 6/1/34 | 712,838 | ||||
736,059 | Pool #783893, 5.50%, 12/1/34 | 789,467 | ||||
649,187 | Pool #783929, 5.50%, 10/1/34 | 696,292 | ||||
201,766 | Pool #788329, 6.50%, 8/1/34 | 225,144 | ||||
180,043 | Pool #790282, 6.00%, 7/1/34 | 196,541 | ||||
390,713 | Pool #797623, 5.00%, 7/1/35 | 413,019 | ||||
171,469 | Pool #797626, 5.50%, 7/1/35 | 183,375 | ||||
203,147 | Pool #797627, 5.00%, 7/1/35 | 214,745 | ||||
139,581 | Pool #797674, 5.50%, 9/1/35 | 149,812 | ||||
829,907 | Pool #798725, 5.50%, 11/1/34 | 890,125 | ||||
459,160 | Pool #799547, 5.50%, 9/1/34 | 493,640 | ||||
214,652 | Pool #799548, 6.00%, 9/1/34 | 235,201 | ||||
3,326,843 | Pool #806754, 4.50%, 9/1/34 | 3,499,459 | ||||
856,614 | Pool #806757, 6.00%, 9/1/34 | 935,112 | ||||
4,435,702 | Pool #806761, 5.50%, 9/1/34 | 4,757,553 | ||||
494,333 | Pool #808185, 5.50%, 3/1/35 | 528,657 | ||||
893,086 | Pool #808205, 5.00%, 1/1/35 | 944,073 | ||||
86,962 | Pool #813941, 4.50%, 11/1/20 | 92,177 | ||||
104,166 | Pool #813942, 5.00%, 11/1/20 | 111,105 | ||||
1,756,823 | Pool #815009, 5.00%, 4/1/35 | 1,857,121 | ||||
1,175,647 | Pool #817641, 5.00%, 11/1/35 | 1,244,659 | ||||
1,078,355 | Pool #820334, 5.00%, 9/1/35 | 1,139,919 | ||||
871,366 | Pool #820335, 5.00%, 9/1/35 | 921,113 | ||||
711,900 | Pool #820336, 5.00%, 9/1/35 | 753,841 | ||||
603,008 | Pool #822008, 5.00%, 5/1/35 | 637,434 | ||||
1,750,014 | Pool #829005, 5.00%, 8/1/35 | 1,849,923 | ||||
220,651 | Pool #829006, 5.50%, 9/1/35 | 235,971 | ||||
324,624 | Pool #829007, 4.50%, 8/1/35 | 340,960 | ||||
184,693 | Pool #829117, 5.50%, 9/1/35 | 201,295 | ||||
88,298 | Pool #829118, 5.50%, 9/1/35 | 96,137 | ||||
824,836 | Pool #829274, 5.00%, 8/1/35 | 871,926 | ||||
1,306,373 | Pool #829275, 5.00%, 8/1/35 | 1,380,954 | ||||
1,292,478 | Pool #829276, 5.00%, 8/1/35 | 1,366,267 | ||||
772,125 | Pool #829277, 5.00%, 8/1/35 | 816,206 | ||||
211,338 | Pool #829356, 5.00%, 9/1/35 | 224,364 | ||||
1,561,826 | Pool #829649, 5.50%, 3/1/35 | 1,675,151 | ||||
1,123,783 | Pool #835287, 5.00%, 8/1/35 | 1,187,941 | ||||
258,607 | Pool #843586, 5.50%, 11/1/35 | 276,563 | ||||
270,690 | Pool #843587, 6.00%, 12/1/35 | 294,057 | ||||
3,639,003 | Pool #844361, 5.50%, 11/1/35 | 3,891,674 | ||||
971,943 | Pool #845245, 5.50%, 11/1/35 | 1,039,429 | ||||
1,666,117 | Pool #866969, 6.00%, 2/1/36 | 1,799,532 |
18
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$ 357,393 | Pool #867569, 6.00%, 2/1/36 | $ | 386,012 | |||
358,868 | Pool #867574, 5.50%, 2/1/36 | 384,543 | ||||
647,951 | Pool #868788, 6.00%, 3/1/36 | 699,835 | ||||
417,559 | Pool #868849, 6.00%, 4/1/36 | 450,995 | ||||
584,150 | Pool #870599, 6.00%, 6/1/36 | 634,244 | ||||
475,925 | Pool #870684, 6.00%, 7/1/36 | 514,035 | ||||
754,328 | Pool #871072, 5.50%, 2/1/37 | 806,309 | ||||
761,919 | Pool #873819, 6.39%, 8/1/24 | 873,938 | ||||
3,243,245 | Pool #874900, 5.45%, 10/1/17 | 3,685,344 | ||||
449,445 | Pool #881425, 6.00%, 7/1/36 | 485,434 | ||||
853,456 | Pool #882044, 6.00%, 5/1/36 | 927,131 | ||||
536,246 | Pool #883589, 6.00%, 4/1/36 | 579,187 | ||||
730,538 | Pool #884693, 5.50%, 4/1/36 | 778,751 | ||||
2,810,951 | Pool #885724, 5.50%, 6/1/36 | 2,996,465 | ||||
529,639 | Pool #899800, 6.00%, 8/1/37 | 569,898 | ||||
298,988 | Pool #901412, 6.00%, 8/1/36 | 322,930 | ||||
576,340 | Pool #905438, 6.00%, 11/1/36 | 622,490 | ||||
683,711 | Pool #907646, 6.00%, 1/1/37 | 741,878 | ||||
573,307 | Pool #908671, 6.00%, 1/1/37 | 619,215 | ||||
1,280,209 | Pool #908672, 5.50%, 1/1/37 | 1,364,699 | ||||
1,007,864 | Pool #911730, 5.50%, 12/1/21 | 1,085,849 | ||||
752,002 | Pool #919368, 5.50%, 4/1/37 | 807,532 | ||||
1,204,737 | Pool #922582, 6.00%, 12/1/36 | 1,301,207 | ||||
2,822,213 | Pool #934941, 5.00%, 8/1/39 | 2,986,862 | ||||
1,133,965 | Pool #934942, 5.00%, 9/1/39 | 1,194,451 | ||||
1,367,258 | Pool #941204, 5.50%, 6/1/37 | 1,469,441 | ||||
1,026,985 | Pool #941205, 5.00%, 5/1/37 | 1,088,826 | ||||
776,690 | Pool #941206, 5.50%, 5/1/37 | 830,211 | ||||
431,387 | Pool #941487, 6.00%, 8/1/37 | 469,708 | ||||
692,025 | Pool #943394, 5.50%, 6/1/37 | 742,719 | ||||
1,485,011 | Pool #944502, 6.00%, 6/1/37 | 1,603,924 | ||||
290,739 | Pool #945853, 6.00%, 7/1/37 | 316,194 | ||||
731,512 | Pool #948600, 6.00%, 8/1/37 | 790,774 | ||||
925,499 | Pool #948672, 5.50%, 8/1/37 | 984,647 | ||||
1,622,206 | Pool #952598, 6.00%, 7/1/37 | 1,767,851 | ||||
841,103 | Pool #952623, 6.00%, 8/1/37 | 905,038 | ||||
1,915,962 | Pool #952632, 6.00%, 7/1/37 | 2,071,180 | ||||
440,673 | Pool #952649, 6.00%, 7/1/37 | 478,164 | ||||
1,310,110 | Pool #952659, 6.00%, 8/1/37 | 1,415,017 | ||||
807,818 | Pool #952665, 6.00%, 8/1/37 | 874,262 | ||||
721,830 | Pool #952678, 6.50%, 8/1/37 | 788,506 | ||||
294,039 | Pool #952693, 6.50%, 8/1/37 | 321,200 | ||||
775,146 | Pool #956050, 6.00%, 12/1/37 | 834,068 | ||||
2,625,473 | Pool #957324, 5.43%, 5/1/18(c) | 2,984,199 | ||||
393,640 | Pool #958502, 5.07%, 1/1/39(c) | 446,408 | ||||
701,360 | Pool #959093, 5.50%, 11/1/37 | 753,197 | ||||
679,500 | Pool #960919, 5.00%, 2/1/38 | 719,211 | ||||
524,126 | Pool #965239, 5.84%, 9/1/38 | 563,998 |
19
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$ 193,465 | Pool #972648, 5.50%, 2/1/38 | $ | 206,797 | |||
1,119,668 | Pool #975137, 5.00%, 5/1/38 | 1,179,504 | ||||
805,870 | Pool #975769, 5.50%, 3/1/38 | 857,373 | ||||
927,215 | Pool #982656, 5.50%, 6/1/38 | 991,109 | ||||
944,355 | Pool #982898, 5.00%, 5/1/38 | 994,822 | ||||
973,389 | Pool #983033, 5.00%, 5/1/38 | 1,030,274 | ||||
1,146,477 | Pool #984842, 5.50%, 6/1/38 | 1,219,748 | ||||
826,703 | Pool #986230, 5.00%, 7/1/38 | 876,483 | ||||
637,456 | Pool #986233, 5.00%, 6/1/38 | 674,709 | ||||
551,269 | Pool #986239, 6.00%, 7/1/38 | 600,049 | ||||
1,213,334 | Pool #986957, 5.50%, 7/1/38 | 1,290,877 | ||||
994,519 | Pool #986958, 5.50%, 7/1/38 | 1,062,423 | ||||
381,539 | Pool #986985, 5.00%, 7/1/23 | 405,316 | ||||
1,452,053 | Pool #990510, 5.50%, 8/1/38 | 1,544,853 | ||||
1,037,518 | Pool #990511, 6.00%, 8/1/38 | 1,115,085 | ||||
858,497 | Pool #990617, 5.50%, 9/1/38 | 913,363 | ||||
318,446 | Pool #AA0525, 5.50%, 12/1/38 | 341,982 | ||||
2,226,712 | Pool #AA0526, 5.00%, 12/1/38 | 2,362,409 | ||||
4,620,934 | Pool #AA0527, 5.50%, 12/1/38 | 4,950,911 | ||||
1,000,238 | Pool #AA0643, 4.00%, 3/1/39 | 1,029,474 | ||||
1,187,947 | Pool #AA0644, 4.50%, 3/1/39 | 1,239,191 | ||||
1,204,654 | Pool #AA0645, 4.50%, 3/1/39 | 1,262,801 | ||||
1,357,252 | Pool #AA0814, 5.50%, 12/1/38 | 1,454,173 | ||||
1,029,793 | Pool #AA2243, 4.50%, 5/1/39 | 1,082,142 | ||||
1,943,252 | Pool #AA3142, 4.50%, 3/1/39 | 2,040,740 | ||||
1,084,315 | Pool #AA3143, 4.00%, 3/1/39 | 1,115,840 | ||||
1,311,496 | Pool #AA3206, 4.00%, 4/1/39 | 1,356,183 | ||||
1,175,098 | Pool #AA3207, 4.50%, 3/1/39 | 1,231,111 | ||||
1,012,889 | Pool #AA4468, 4.00%, 4/1/39 | 1,047,401 | ||||
1,052,382 | Pool #AA7042, 4.50%, 6/1/39 | 1,102,546 | ||||
985,994 | Pool #AA7658, 4.00%, 6/1/39 | 1,020,973 | ||||
1,585,195 | Pool #AA7659, 4.50%, 6/1/39 | 1,669,700 | ||||
982,422 | Pool #AA7741, 4.50%, 6/1/24 | 1,034,131 | ||||
940,934 | Pool #AA8455, 4.50%, 6/1/39 | 991,065 | ||||
2,330,030 | Pool #AC1463, 5.00%, 8/1/39 | 2,454,315 | ||||
1,083,629 | Pool #AC1464, 5.00%, 8/1/39 | 1,146,849 | ||||
2,227,107 | Pool #AC2109, 4.50%, 7/1/39 | 2,323,175 | ||||
1,019,513 | Pool #AC4394, 5.00%, 9/1/39 | 1,073,894 | ||||
1,323,884 | Pool #AC4395, 5.00%, 9/1/39 | 1,394,501 | ||||
1,033,574 | Pool #AC5328, 5.00%, 11/1/39 | 1,088,706 | ||||
1,756,146 | Pool #AC5329, 5.00%, 11/1/39 | 1,858,601 | ||||
1,598,465 | Pool #AC6304, 5.00%, 12/1/39 | 1,691,721 | ||||
1,088,664 | Pool #AC6305, 5.00%, 11/1/39 | 1,150,775 | ||||
2,260,414 | Pool #AC6307, 5.00%, 12/1/39 | 2,392,288 | ||||
1,175,616 | Pool #AC6790, 5.00%, 12/1/39 | 1,238,325 | ||||
4,837,033 | Pool #AC7199, 5.00%, 12/1/39 | 5,119,228 | ||||
3,008,159 | Pool #AD1470, 5.00%, 2/1/39 | 3,183,658 | ||||
2,923,593 | Pool #AD1471, 4.50%, 2/1/39 | 3,062,496 |
20
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$3,392,585 | Pool #AD1560, 5.00%, 3/1/40 | $ | 3,590,512 | |||
4,038,558 | Pool #AD1585, 4.50%, 2/1/40 | 4,230,434 | ||||
1,497,253 | Pool #AD1586, 5.00%, 2/1/40 | 1,584,604 | ||||
1,039,273 | Pool #AD1638, 4.50%, 2/1/40 | 1,083,453 | ||||
1,830,688 | Pool #AD1640, 4.50%, 3/1/40 | 1,917,665 | ||||
3,430,195 | Pool #AD1942, 4.50%, 1/1/40 | 3,593,166 | ||||
1,282,740 | Pool #AD1943, 5.00%, 1/1/40 | 1,357,576 | ||||
4,910,409 | Pool #AD1988, 4.50%, 2/1/40 | 5,143,708 | ||||
1,205,017 | Pool #AD2896, 5.00%, 3/1/40 | 1,269,294 | ||||
3,467,360 | Pool #AD4456, 4.50%, 4/16/40 | 3,632,098 | ||||
1,132,943 | Pool #AD4457, 4.50%, 4/1/40 | 1,186,770 | ||||
2,829,354 | Pool #AD4458, 4.50%, 4/1/40 | 2,949,633 | ||||
1,192,841 | Pool #AD4940, 4.50%, 6/15/39 | 1,243,550 | ||||
1,143,816 | Pool #AD4946, 4.50%, 6/1/40 | 1,192,441 | ||||
1,453,522 | Pool #AD5728, 5.00%, 4/1/40 | 1,540,932 | ||||
1,709,787 | Pool #AD7239, 4.50%, 7/1/40 | 1,791,020 | ||||
1,562,481 | Pool #AD7242, 4.50%, 7/1/40 | 1,636,716 | ||||
1,359,079 | Pool #AD7256, 4.50%, 6/1/40 | 1,416,854 | ||||
3,752,860 | Pool #AD7271, 4.50%, 7/1/40 | 3,931,162 | ||||
1,622,559 | Pool #AD7272, 4.50%, 7/1/40 | 1,691,535 | ||||
1,554,904 | Pool #AD8960, 5.00%, 6/1/40 | 1,637,845 | ||||
2,653,873 | Pool #AD9613, 4.50%, 7/2/40 | 2,779,961 | ||||
2,748,583 | Pool #AD9614, 4.50%, 7/1/40 | 2,865,428 | ||||
1,411,320 | Pool #AE2011, 4.00%, 8/1/40 | 1,459,408 | ||||
3,712,378 | Pool #AE2012, 4.00%, 8/1/40 | 3,820,309 | ||||
1,845,738 | Pool #AE2023, 4.00%, 8/1/40 | 1,899,400 | ||||
1,083,252 | Pool #AE5806, 4.50%, 9/1/40 | 1,129,302 | ||||
779,863 | Pool #MC0007, 5.50%, 12/1/38 | 833,603 | ||||
128,882 | Pool #MC0013, 5.50%, 12/1/38 | 140,690 | ||||
130,975 | Pool #MC0014, 5.50%, 12/1/38 | 141,134 | ||||
69,727 | Pool #MC0015, 6.00%, 11/1/38 | 77,032 | ||||
84,499 | Pool #MC0016, 5.50%, 11/1/38 | 91,475 | ||||
572,361 | Pool #MC0038, 4.50%, 3/1/39 | 599,555 | ||||
149,096 | Pool #MC0046, 4.00%, 4/1/39 | 154,575 | ||||
300,602 | Pool #MC0047, 4.50%, 4/1/39 | 314,931 | ||||
59,006 | Pool #MC0059, 4.00%, 4/1/39 | 61,378 | ||||
411,945 | Pool #MC0081, 4.00%, 5/1/39 | 425,981 | ||||
526,580 | Pool #MC0082, 4.50%, 5/1/39 | 551,598 | ||||
520,088 | Pool #MC0111, 4.00%, 6/1/39 | 537,809 | ||||
333,097 | Pool #MC0112, 4.50%, 6/1/39 | 351,091 | ||||
405,724 | Pool #MC0127, 4.50%, 7/1/39 | 425,001 | ||||
80,046 | Pool #MC0135, 4.50%, 7/1/39 | 83,849 | ||||
1,418,912 | Pool #MC0137, 4.50%, 7/1/39 | 1,486,326 | ||||
2,036,313 | Pool #MC0154, 4.50%, 8/1/39 | 2,133,060 | ||||
106,409 | Pool #MC0155, 5.00%, 8/1/39 | 112,617 | ||||
664,919 | Pool #MC0160, 4.50%, 8/1/39 | 696,510 | ||||
1,910,470 | Pool #MC0171, 4.50%, 9/1/39 | 2,001,238 | ||||
626,488 | Pool #MC0177, 4.50%, 9/1/39 | 657,819 |
21
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$ 673,346 | Pool #MC0270, 4.50%, 4/1/40 | $ | 705,337 | |||
992,032 | Pool #MC0325, 4.50%, 7/1/40 | 1,039,165 | ||||
250,157 | Pool #MC3344, 5.00%, 12/1/38 | 264,776 | ||||
10,787,105 | Series 2004-T7, Class A, 5.12%, 7/25/41 | 12,251,319 | ||||
423,055,077 | ||||||
Freddie Mac — 19.02% | ||||||
252,508 | Pool #A10124, 5.00%, 6/1/33 | 267,555 | ||||
351,519 | Pool #A10548, 5.00%, 6/1/33 | 372,467 | ||||
1,347,066 | Pool #A12237, 5.00%, 8/1/33 | 1,427,338 | ||||
453,055 | Pool #A12969, 4.50%, 8/1/33 | 476,633 | ||||
213,915 | Pool #A12985, 5.00%, 8/1/33 | 226,662 | ||||
548,933 | Pool #A12986, 5.00%, 8/1/33 | 581,644 | ||||
690,058 | Pool #A14028, 4.50%, 9/1/33 | 725,970 | ||||
1,167,807 | Pool #A14325, 5.00%, 9/1/33 | 1,237,397 | ||||
176,916 | Pool #A15268, 6.00%, 10/1/33 | 193,875 | ||||
1,078,892 | Pool #A15579, 5.50%, 11/1/33 | 1,157,867 | ||||
578,490 | Pool #A17393, 5.50%, 12/1/33 | 620,835 | ||||
570,998 | Pool #A17397, 5.50%, 1/1/34 | 611,546 | ||||
492,369 | Pool #A18617, 5.50%, 1/1/34 | 527,334 | ||||
542,557 | Pool #A19019, 5.50%, 2/1/34 | 581,085 | ||||
256,216 | Pool #A19362, 5.50%, 2/1/34 | 274,410 | ||||
483,718 | Pool #A20069, 5.00%, 3/1/34 | 512,747 | ||||
1,082,436 | Pool #A20070, 5.50%, 3/1/34 | 1,159,303 | ||||
1,304,555 | Pool #A20540, 5.50%, 4/1/34 | 1,397,195 | ||||
237,119 | Pool #A20541, 5.50%, 4/1/34 | 253,958 | ||||
640,524 | Pool #A21679, 5.50%, 4/1/34 | 686,009 | ||||
877,583 | Pool #A21681, 5.00%, 4/1/34 | 928,508 | ||||
616,873 | Pool #A23192, 5.00%, 5/1/34 | 652,669 | ||||
1,984,993 | Pool #A25310, 5.00%, 6/1/34 | 2,100,178 | ||||
423,572 | Pool #A25311, 5.00%, 6/1/34 | 448,151 | ||||
581,243 | Pool #A25600, 5.50%, 8/1/34 | 622,519 | ||||
88,004 | Pool #A26270, 6.00%, 8/1/34 | 96,209 | ||||
52,441 | Pool #A26386, 6.00%, 9/1/34 | 58,003 | ||||
634,577 | Pool #A26395, 6.00%, 9/1/34 | 691,836 | ||||
533,697 | Pool #A26396, 5.50%, 9/1/34 | 571,597 | ||||
1,435,760 | Pool #A28241, 5.50%, 10/1/34 | 1,537,717 | ||||
647,904 | Pool #A30055, 5.00%, 11/1/34 | 685,501 | ||||
647,148 | Pool #A30591, 6.00%, 12/1/34 | 705,541 | ||||
636,738 | Pool #A31135, 5.50%, 12/1/34 | 681,955 | ||||
352,568 | Pool #A32976, 5.50%, 8/1/35 | 376,393 | ||||
963,316 | Pool #A33167, 5.00%, 1/1/35 | 1,019,216 | ||||
1,834,737 | Pool #A34999, 5.50%, 4/1/35 | 1,958,721 | ||||
607,172 | Pool #A35628, 5.50%, 6/1/35 | 648,202 | ||||
1,261,993 | Pool #A37185, 5.00%, 9/1/35 | 1,333,647 | ||||
1,637,870 | Pool #A38830, 5.00%, 5/1/35 | 1,730,866 | ||||
448,853 | Pool #A39561, 5.50%, 11/1/35 | 479,184 | ||||
1,614,273 | Pool #A40538, 5.00%, 12/1/35 | 1,705,928 |
22
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$ 249,338 | Pool #A41442, 5.50%, 12/1/35 | $ | 266,187 | |||
957,282 | Pool #A42095, 5.50%, 1/1/36 | 1,021,971 | ||||
1,344,403 | Pool #A42097, 5.00%, 1/1/36 | 1,420,735 | ||||
439,925 | Pool #A42098, 5.50%, 1/1/36 | 469,653 | ||||
295,726 | Pool #A42099, 6.00%, 1/1/36 | 319,082 | ||||
551,829 | Pool #A42802, 5.00%, 2/1/36 | 583,160 | ||||
1,396,591 | Pool #A42803, 5.50%, 2/1/36 | 1,490,966 | ||||
746,670 | Pool #A42804, 6.00%, 2/1/36 | 805,643 | ||||
738,074 | Pool #A42805, 6.00%, 2/1/36 | 796,369 | ||||
98,493 | Pool #A44637, 5.50%, 4/1/36 | 105,154 | ||||
617,693 | Pool #A44638, 6.00%, 4/1/36 | 670,851 | ||||
759,870 | Pool #A44639, 5.50%, 3/1/36 | 812,169 | ||||
912,044 | Pool #A45396, 5.00%, 6/1/35 | 964,968 | ||||
816,620 | Pool #A46321, 5.50%, 7/1/35 | 871,803 | ||||
1,477,675 | Pool #A46735, 5.00%, 8/1/35 | 1,561,575 | ||||
939,228 | Pool #A46746, 5.50%, 8/1/35 | 1,002,697 | ||||
443,118 | Pool #A46747, 5.50%, 8/1/35 | 473,062 | ||||
725,529 | Pool #A46748, 5.50%, 8/1/35 | 774,557 | ||||
260,384 | Pool #A46996, 5.50%, 9/1/35 | 277,980 | ||||
804,398 | Pool #A46997, 5.50%, 9/1/35 | 861,521 | ||||
1,091,359 | Pool #A47552, 5.00%, 11/1/35 | 1,153,324 | ||||
674,189 | Pool #A47553, 5.00%, 11/1/35 | 712,468 | ||||
695,214 | Pool #A47554, 5.50%, 11/1/35 | 742,193 | ||||
678,050 | Pool #A48788, 5.50%, 5/1/36 | 724,717 | ||||
954,319 | Pool #A48789, 6.00%, 5/1/36 | 1,028,201 | ||||
698,032 | Pool #A49013, 6.00%, 5/1/36 | 752,073 | ||||
425,942 | Pool #A49526, 6.00%, 5/1/36 | 458,918 | ||||
455,605 | Pool #A49843, 6.00%, 6/1/36 | 493,772 | ||||
778,263 | Pool #A49844, 6.00%, 6/1/36 | 839,732 | ||||
135,153 | Pool #A49845, 6.50%, 6/1/36 | 152,858 | ||||
917,125 | Pool #A50128, 6.00%, 6/1/36 | 988,128 | ||||
1,253,540 | Pool #A59530, 5.50%, 4/1/37 | 1,330,539 | ||||
609,589 | Pool #A59964, 5.50%, 4/1/37 | 648,134 | ||||
1,270,483 | Pool #A61754, 5.50%, 5/1/37 | 1,348,523 | ||||
344,747 | Pool #A61779, 5.50%, 5/1/37 | 367,471 | ||||
889,647 | Pool #A61915, 5.50%, 6/1/37 | 944,294 | ||||
2,979,974 | Pool #A61916, 6.00%, 6/1/37 | 3,200,437 | ||||
2,758,606 | Pool #A63456, 5.50%, 6/1/37 | 2,948,744 | ||||
979,760 | Pool #A64012, 5.50%, 7/1/37 | 1,039,942 | ||||
529,804 | Pool #A64015, 6.00%, 7/1/37 | 569,000 | ||||
665,242 | Pool #A64016, 6.50%, 7/1/37 | 725,444 | ||||
938,672 | Pool #A64447, 6.00%, 8/1/37 | 1,012,809 | ||||
896,172 | Pool #A64450, 6.00%, 8/1/37 | 969,194 | ||||
97,209 | Pool #A65713, 6.00%, 9/1/37 | 106,434 | ||||
740,612 | Pool #A65837, 6.00%, 9/1/37 | 795,403 | ||||
772,698 | Pool #A66043, 5.50%, 7/1/37 | 825,879 | ||||
2,237,534 | Pool #A66061, 5.50%, 8/1/37 | 2,374,975 | ||||
1,319,450 | Pool #A66116, 6.00%, 9/1/37 | 1,417,065 |
23
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$ 810,938 | Pool #A66122, 6.00%, 8/1/37 | $ | 871,262 | |||
696,789 | Pool #A66133, 6.00%, 6/1/37 | 748,339 | ||||
1,746,955 | Pool #A66156, 6.50%, 9/1/37 | 1,905,046 | ||||
1,200,201 | Pool #A67630, 6.00%, 11/1/37 | 1,294,995 | ||||
1,242,360 | Pool #A68766, 6.00%, 10/1/37 | 1,340,484 | ||||
449,750 | Pool #A70292, 5.50%, 7/1/37 | 479,675 | ||||
235,132 | Pool #A73816, 6.00%, 3/1/38 | 254,354 | ||||
987,171 | Pool #A75113, 5.00%, 3/1/38 | 1,042,703 | ||||
811,326 | Pool #A76187, 5.00%, 4/1/38 | 852,909 | ||||
693,897 | Pool #A78354, 5.50%, 11/1/37 | 738,185 | ||||
932,980 | Pool #A79561, 5.50%, 7/1/38 | 990,289 | ||||
1,309,483 | Pool #A92388, 4.50%, 5/1/40 | 1,369,806 | ||||
1,044,457 | Pool #A93962, 4.50%, 8/1/40 | 1,087,389 | ||||
89,919 | Pool #B31082, 6.00%, 3/1/31 | 98,819 | ||||
113,943 | Pool #B31128, 6.00%, 9/1/31 | 125,221 | ||||
90,227 | Pool #B31139, 6.50%, 10/1/31 | 100,182 | ||||
250,952 | Pool #B31140, 6.50%, 10/1/31 | 278,642 | ||||
59,947 | Pool #B31146, 6.50%, 10/1/31 | 66,561 | ||||
77,567 | Pool #B31150, 6.50%, 11/1/31 | 86,126 | ||||
196,387 | Pool #B31188, 6.00%, 1/1/32 | 215,580 | ||||
28,692 | Pool #B31206, 6.00%, 3/1/32 | 31,532 | ||||
113,437 | Pool #B31292, 6.00%, 9/1/32 | 124,666 | ||||
82,440 | Pool #B31493, 5.00%, 2/1/34 | 87,223 | ||||
507,325 | Pool #B31516, 5.00%, 4/1/34 | 536,764 | ||||
331,263 | Pool #B31517, 5.00%, 4/1/34 | 350,486 | ||||
248,880 | Pool #B31532, 5.00%, 5/1/34 | 263,322 | ||||
336,739 | Pool #B31545, 5.00%, 5/1/34 | 356,279 | ||||
236,305 | Pool #B31546, 5.50%, 5/1/34 | 253,086 | ||||
305,561 | Pool #B31547, 5.50%, 5/1/34 | 327,260 | ||||
370,500 | Pool #B31550, 5.00%, 6/1/34 | 392,000 | ||||
199,212 | Pool #B31551, 5.50%, 6/1/34 | 213,919 | ||||
327,402 | Pool #B31587, 5.00%, 11/1/34 | 346,401 | ||||
242,860 | Pool #B31588, 5.50%, 11/1/34 | 260,107 | ||||
316,254 | Pool #B31642, 5.50%, 5/1/35 | 337,625 | ||||
138,628 | Pool #B50443, 5.00%, 11/1/18 | 147,960 | ||||
200,362 | Pool #B50450, 4.50%, 1/1/19 | 212,881 | ||||
103,560 | Pool #B50451, 5.00%, 1/1/19 | 110,596 | ||||
57,444 | Pool #B50458, 4.50%, 3/1/19 | 61,033 | ||||
47,232 | Pool #B50470, 4.50%, 4/1/19 | 50,182 | ||||
194,709 | Pool #B50496, 5.50%, 9/1/19 | 210,399 | ||||
443,568 | Pool #B50499, 5.00%, 11/1/19 | 473,707 | ||||
58,309 | Pool #B50500, 5.50%, 10/1/19 | 63,008 | ||||
189,342 | Pool #B50501, 4.50%, 11/1/19 | 201,172 | ||||
222,035 | Pool #B50504, 5.50%, 11/1/19 | 239,927 | ||||
424,599 | Pool #B50506, 5.00%, 11/1/19 | 453,449 | ||||
95,195 | Pool #C35457, 7.50%, 1/1/30 | 108,475 | ||||
53,419 | Pool #C37233, 7.50%, 2/1/30 | 60,871 | ||||
89,383 | Pool #C48137, 7.00%, 1/1/31 | 101,413 |
24
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$ 37,918 | Pool #C48138, 7.00%, 2/1/31 | $ | 43,021 | |||
58,501 | Pool #C50288, 6.50%, 4/1/31 | 64,956 | ||||
386,340 | Pool #C51686, 6.50%, 5/1/31 | 428,969 | ||||
193,347 | Pool #C53210, 6.50%, 6/1/31 | 214,680 | ||||
65,350 | Pool #C53914, 6.50%, 6/1/31 | 72,561 | ||||
153,498 | Pool #C60020, 6.50%, 11/1/31 | 170,435 | ||||
133,938 | Pool #C60804, 6.00%, 11/1/31 | 147,196 | ||||
29,629 | Pool #C62574, 6.50%, 12/1/31 | 32,898 | ||||
79,675 | Pool #C65200, 6.50%, 3/1/32 | 88,467 | ||||
133,351 | Pool #C65616, 6.50%, 3/1/32 | 148,065 | ||||
61,982 | Pool #C68324, 6.50%, 6/1/32 | 68,821 | ||||
667,279 | Pool #C73273, 6.00%, 11/1/32 | 732,493 | ||||
445,722 | Pool #C73525, 6.00%, 11/1/32 | 489,284 | ||||
501,862 | Pool #C74672, 5.50%, 11/1/32 | 538,912 | ||||
815,037 | Pool #C77844, 5.50%, 3/1/33 | 874,698 | ||||
166,383 | Pool #C77845, 5.50%, 3/1/33 | 178,562 | ||||
516,839 | Pool #C78252, 5.50%, 3/1/33 | 554,672 | ||||
145,254 | Pool #C78380, 5.50%, 3/1/33 | 155,887 | ||||
221,492 | Pool #C79178, 5.50%, 4/1/33 | 237,705 | ||||
696,753 | Pool #J00980, 5.00%, 1/1/21 | 743,006 | ||||
479,228 | Pool #J05466, 5.50%, 6/1/22 | 518,192 | ||||
862,576 | Pool #N31468, 6.00%, 11/1/37 | 920,460 | ||||
104,291,395 | ||||||
Ginnie Mae — 7.92% | ||||||
1,400,000 | (TBA), 3.50%, 10/1/40 | 1,412,907 | ||||
696,363 | Pool #409117, 5.50%, 6/20/38 | 748,791 | ||||
755,676 | Pool #487643, 5.00%, 2/15/39 | 805,862 | ||||
1,355,862 | Pool #514702, 8.25%, 12/15/32 | 1,451,811 | ||||
480,232 | Pool #588448, 6.25%, 9/15/32 | 504,469 | ||||
1,613,292 | Pool #616936, 5.50%, 1/15/36 | 1,746,412 | ||||
599,609 | Pool #617904, 5.75%, 9/15/23 | 616,855 | ||||
573,051 | Pool #624106, 5.13%, 3/15/34 | 590,301 | ||||
457,208 | Pool #664269, 5.85%, 6/15/38 | 490,470 | ||||
1,415,391 | Pool #675509, 5.50%, 6/15/38 | 1,537,026 | ||||
864,515 | Pool #685140, 5.90%, 4/15/38 | 925,000 | ||||
1,133,147 | Pool #697672, 5.50%, 12/15/38 | 1,230,512 | ||||
989,672 | Pool #697814, 5.00%, 2/15/39 | 1,060,346 | ||||
953,531 | Pool #697885, 4.50%, 3/15/39 | 1,005,050 | ||||
1,562,196 | Pool #698112, 4.50%, 5/15/39 | 1,659,369 | ||||
2,581,360 | Pool #698113, 4.50%, 5/15/39 | 2,729,001 | ||||
1,006,184 | Pool #699294, 5.63%, 9/20/38 | 1,090,559 | ||||
4,999,880 | Pool #713519, 6.00%, 7/1/39 | 5,500,115 | ||||
997,172 | Pool #714561, 4.50%, 6/15/39 | 1,054,205 | ||||
1,372,856 | Pool #716822, 4.50%, 4/15/39 | 1,453,896 | ||||
1,210,341 | Pool #716823, 4.50%, 4/15/39 | 1,279,585 | ||||
1,276,781 | Pool #717132, 4.50%, 5/15/39 | 1,356,229 | ||||
1,476,042 | Pool #717133, 4.50%, 5/15/39 | 1,555,792 |
25
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$ 1,386,966 | Pool #720080, 4.50%, 6/15/39 | $ | 1,473,659 | |||
1,146,243 | Pool #720521, 5.00%, 8/15/39 | 1,228,098 | ||||
3,014,664 | Pool #726550, 5.00%, 10/1/39 | 3,229,948 | ||||
2,036,567 | Pool #729018, 4.50%, 2/15/40 | 2,156,785 | ||||
1,191,628 | Pool #729019, 5.00%, 2/15/40 | 1,276,725 | ||||
1,085,050 | Pool #747241, 5.00%, 8/1/40 | 1,159,139 | ||||
1,034,599 | Pool #748846, 4.50%, 9/1/40 | 1,096,965 | ||||
43,425,882 | ||||||
Total U.S. Government Agency Backed Mortgages | 570,772,354 | |||||
(Cost $538,919,066) | ||||||
U.S. Government Agency Obligations — 9.58% | ||||||
Community Reinvestment Revenue Notes — 1.32% | ||||||
47,684 | 3.39%, 8/1/35(b)(c) | 46,970 | ||||
7,250,000 | 3.98%, 8/1/35(b)(c) | 7,162,558 | ||||
7,209,528 | ||||||
Freddie Mac — 0.36% | ||||||
2,000,000 | 0.42%, 5/2/11(d) | 1,997,752 | ||||
Small Business Administration — 5.59% | ||||||
266,269 | 0.55%, 4/25/28(a) | 264,757 | ||||
656,592 | 0.55%, 3/25/29(a) | 652,837 | ||||
1,943,265 | 0.55%, 9/25/30(a) | 1,932,052 | ||||
436,885 | 0.60%, 11/25/29(a) | 435,168 | ||||
279,173 | 0.60%, 3/25/28(a) | 278,047 | ||||
275,990 | 0.63%, 6/25/18(a) | 274,597 | ||||
1,124,860 | 0.63%, 4/15/32(c) | 1,130,234 | ||||
529,784 | 0.65%, 3/25/14(a) | 527,072 | ||||
205,275 | 0.66%, 4/15/26(c) | 206,228 | ||||
977,152 | 0.66%, 11/15/26(c) | 981,727 | ||||
439,276 | 0.66%, 7/15/32(c) | 441,632 | ||||
612,057 | 0.75%, 11/29/32(c) | 616,049 | ||||
174,352 | 0.80%, 9/15/32(c) | 175,630 | ||||
251,242 | 0.80%, 2/21/33(c) | 253,110 | ||||
1,332,503 | 0.80%, 4/15/33(c) | 1,342,452 | ||||
321,825 | 0.85%, 9/14/29(c) | 324,039 | ||||
1,472,505 | 0.87%, 4/21/34(c) | 1,486,978 | ||||
49,309 | 0.88%, 6/4/14(c) | 49,423 | ||||
199,313 | 0.88%, 12/1/19(c) | 201,022 | ||||
1,386,816 | 0.88%, 9/15/32(c) | 1,398,420 | ||||
781,743 | 0.88%, 2/15/32(c) | 788,153 | ||||
1,183,801 | 0.90%, 3/14/18(c) | 1,192,318 | ||||
180,299 | 1.00%, 5/15/20(c) | 181,928 | ||||
1,068,975 | 1.12%, 11/4/34(c) | 1,089,737 | ||||
114,377 | 1.13%, 7/30/17(a) | 115,207 | ||||
21,567,102 | 1.26%, 7/18/30*(c) | 420,249 | ||||
848,428 | 2.00%, 7/15/14(c) | 854,935 |
26
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$ 280,084 | 2.75%, 7/15/20(c) | $ | 292,564 | |||
91,131 | 2.75%, 3/15/20(c) | 95,221 | ||||
218,593 | 2.75%, 3/15/20(c) | 228,504 | ||||
289,121 | 2.75%, 9/15/19(c) | 303,138 | ||||
628,066 | 3.13%, 10/25/15(a) | 644,159 | ||||
1,040,463 | 3.38%, 10/25/15(a) | 1,073,391 | ||||
353,431 | 3.38%, 5/25/16(a) | 362,290 | ||||
531,225 | 3.58%, 12/25/15(a) | 549,084 | ||||
649,605 | 4.33%, 11/17/19(c) | 655,175 | ||||
93,632 | 5.70%, 8/15/17(c) | 95,949 | ||||
383,092 | 5.85%, 12/15/27(c) | 399,659 | ||||
252,300 | 5.85%, 9/27/13(c) | 256,640 | ||||
112,046 | 5.86%, 11/15/22(c) | 116,806 | ||||
326,068 | 5.98%, 6/9/26(c) | 340,527 | ||||
191,001 | 6.00%, 4/15/22(c) | 198,862 | ||||
537,203 | 6.03%, 10/31/32(c) | 561,307 | ||||
416,955 | 6.10%, 9/21/27(c) | 436,115 | ||||
1,333,466 | 6.13%, 4/15/31(c) | 1,395,844 | ||||
251,581 | 6.15%, 1/10/32(c) | 263,390 | ||||
169,984 | 6.25%, 9/15/27(c) | 178,008 | ||||
915,002 | 6.28%, 8/15/17(c) | 940,428 | ||||
163,542 | 6.30%, 4/15/18(c) | 166,720 | ||||
592,737 | 6.35%, 8/13/26(c) | 620,782 | ||||
1,005,259 | 6.45%, 2/19/32(c) | 1,056,746 | ||||
258,695 | 6.50%, 3/30/32(c) | 272,114 | ||||
51,311 | 6.51%, 7/6/27(c) | 53,830 | ||||
88,298 | 6.53%, 1/2/27(c) | 92,601 | ||||
61,004 | 6.69%, 5/28/24(c) | 63,881 | ||||
64,514 | 7.08%, 9/1/13(c) | 65,943 | ||||
148,412 | 7.08%, 1/19/14(c) | 151,844 | ||||
227,825 | 7.33%, 7/1/16(c) | 234,851 | ||||
168,200 | 7.33%, 2/23/16(c) | 173,239 | ||||
106,464 | 7.33%, 7/1/16(c) | 109,747 | ||||
157,479 | 7.38%, 4/1/15(c) | 161,836 | ||||
53,814 | 7.38%, 1/1/15(c) | 55,259 | ||||
71,887 | 7.58%, 8/1/16(c) | 74,225 | ||||
223,232 | 7.83%, 10/3/16(c) | 230,896 | ||||
10,866 | 8.08%, 2/15/14(c) | 11,171 | ||||
48,029 | 8.08%, 10/1/16(c) | 49,733 | ||||
3,161 | 9.58%, 2/15/12(c) | 3,254 | ||||
4,866 | 9.58%, 2/15/12(c) | 5,009 | ||||
9,046 | 9.83%, 12/15/11(c) | 9,318 | ||||
30,664,061 | ||||||
United States Department of Agriculture — 2.31% | ||||||
417,410 | 1.13%, 5/31/14(c) | 425,508 | ||||
193,248 | 5.09%, 3/1/20(c) | 198,782 | ||||
339,941 | 5.25%, 10/26/22(c) | 352,458 |
27
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||
$353,696 | 5.55%, 10/20/32(c) | $ | 367,013 | |||
330,799 | 5.55%, 10/20/32(c) | 343,254 | ||||
171,076 | 5.59%, 1/20/38(c) | 175,413 | ||||
525,157 | 5.60%, 11/29/30(c) | 545,869 | ||||
217,678 | 5.63%, 6/1/20(c) | 224,897 | ||||
66,266 | 5.64%, 1/20/38(c) | 68,027 | ||||
261,884 | 5.64%, 1/20/33(c) | 272,088 | ||||
625,382 | 5.64%, 1/20/38(c) | 641,992 | ||||
105,503 | 5.66%, 1/20/38(c) | 108,354 | ||||
104,287 | 5.66%, 10/20/32(c) | 108,401 | ||||
280,213 | 5.70%, 1/20/38(c) | 288,054 | ||||
471,398 | 5.73%, 2/1/30(c) | 490,893 | ||||
221,475 | 5.73%, 4/20/37(c) | 227,831 | ||||
766,064 | 5.75%, 1/20/33(c) | 797,279 | ||||
96,025 | 5.83%, 11/1/20(c) | 99,460 | ||||
139,955 | 5.91%, 12/4/37(c) | 144,539 | ||||
87,127 | 5.92%, 10/20/37(c) | 90,054 | ||||
123,287 | 5.98%, 12/20/37(c) | 127,555 | ||||
203,710 | 5.99%, 11/1/32(c) | 212,726 | ||||
130,073 | 6.01%, 11/8/32(c) | 135,868 | ||||
221,233 | 6.01%, 1/20/38(c) | 228,974 | ||||
52,390 | 6.01%, 7/20/36(c) | 54,317 | ||||
181,019 | 6.05%, 1/5/26(c) | 189,131 | ||||
409,042 | 6.05%, 1/1/37(c) | 424,978 | ||||
512,554 | 6.07%, 4/20/37(c) | 532,208 | ||||
144,370 | 6.08%, 7/1/32(c) | 150,976 | ||||
99,258 | 6.09%, 5/17/22(c) | 103,462 | ||||
72,866 | 6.10%, 1/1/13(c) | 74,112 | ||||
200,135 | 6.10%, 8/25/37(c) | 207,700 | ||||
298,401 | 6.12%, 1/26/37(c) | 310,365 | ||||
215,287 | 6.12%, 4/20/37(c) | 223,857 | ||||
516,001 | 6.13%, 5/15/14(c) | 526,016 | ||||
98,156 | 6.13%, 7/20/22(c) | 102,361 | ||||
87,959 | 6.13%, 8/1/19(c) | 90,890 | ||||
97,619 | 6.18%, 1/20/38(c) | 101,391 | ||||
222,803 | 6.20%, 1/20/37(c) | 232,239 | ||||
395,119 | 6.23%, 3/14/32(c) | 414,080 | ||||
603,461 | 6.25%, 1/1/37(c) | 628,543 | ||||
82,553 | 6.28%, 3/1/14(c) | 84,181 | ||||
209,275 | 6.38%, 1/31/37(c) | 218,748 | ||||
234,751 | 6.38%, 2/16/37(c) | 245,311 | ||||
816,637 | 6.63%, 12/15/23(c) | 854,618 | ||||
197,606 | 6.64%, 4/20/37(c) | 207,488 | ||||
12,652,261 | ||||||
Total U.S. Government Agency Obligations | 52,523,602 | |||||
(Cost $52,467,491) |
28
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
Principal Amount | Value | |||||||
| Promissory Notes — 1.99% | |||||||
$9,375,000 | Massachusetts Housing Investment Corp. Term Loan, 6.67%, 4/1/35(b)(c) | $ | 10,910,752 | |||||
| Total Promissory Notes | 10,910,752 | ||||||
| (Cost $9,375,000) | |||||||
Shares
| ||||||||
| Investment Company — 5.24% | |||||||
28,716,453 | JPMorgan Prime Money Market Fund | 28,716,453 | ||||||
| Total Investment Company | 28,716,453 | ||||||
| (Cost $28,716,453) | |||||||
| Total Investments | $ | 684,430,831 | |||||
| (Cost 651,067,170)(e) — 124.82% | |||||||
| Liabilities in excess of other assets — (24.82)% | (136,091,706 | ) | |||||
| NET ASSETS — 100.00% | $ | 548,339,125 | |||||
| TBA Sale Commitments | |||||||||||
Principal
| Proceeds | Value | ||||||||||
$18,000,000 | Fannie Mae 5.50%, 30 Year | $ | (19,130,625 | ) | $ | (19,133,442 | ) | |||||
$30,000,000 | Fannie Mae 5.00%, 30 Year | $ | (31,579,688 | ) | $ | (31,575,000 | ) |
* | Interest Only represents the right to receive the monthly interest payment on an underlying pool of mortgage loans. The principal amount shown represents the par value on the underlying pool. |
(a) | Floating rate note. Rate shown is as of report date. |
29
SCHEDULE OF PORTFOLIO INVESTMENTS
|
Access Capital Community Investment Fund (cont.)
September 30, 2010
(b) | This security is restricted and illiquid as the security may not be offered or sold within the United States or to U.S. persons except to qualified purchasers who are also either qualified institutional buyers or “accredited investors” (as defined in Rule 501 (a) of Regulation D under the Securities Act of 1933). The total investment in restricted and illiquid securities representing $21,017,627 or 3.83% of net assets was as follows: |
Acquisition Amount | Issuer | Acquisition Date | Acquisition Cost | 9/30/2010 Carrying Value Per Unit | ||||||||||
$575,000 | Atlantic Marine Corps Communities LLC | 7/31/2007 | $ 509,772 | $0.89 | ||||||||||
$2,000,000 | Pacific Beacon LLC Community Reinvestment | 12/18/2006 | $2,000,000 | $0.71 | ||||||||||
$47,684 | Revenue Note Community Reinvestment | 3/24/2008 | $ 47,388 | $0.98 | ||||||||||
$7,250,000 | Revenue Note Fort Knox Military Housing | 3/24/2008 | $7,157,925 | $0.99 | ||||||||||
$1,395,000 | Privatization Project Massachusetts Housing | 1/29/2007 | $1,328,900 | $0.69 | ||||||||||
$9,375,000 | Investment Corp. | 3/29/2005 | $9,375,000 | $1.16 |
(c) | Fair valued security under procedures established by the Fund’s Board of Trustees. |
(d) | The rate represents the annualized yield at time of purchase. |
(e) | See notes to financial statements for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Abbreviations used are defined below:
AMBAC – Insured by American Municipal Bond Insurance Assurance Corp.
IBC - Insured by International Bancshares Corp.
LOC - Letter of Credit
MBIA – Insured by MBIA
NATL-RE - National Reinsurance Corp.
OID - Original Issue Discount
See notes to financial statements.
30
|
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31
|
Statement of Assets and Liabilities
September 30, 2010
Assets: | ||||
Investments in securities, at value (cost $651,067,170) | $ | 684,430,831 | ||
Segregated cash collateral for reverse repurchase agreements | 7,870,000 | |||
Interest and dividends receivable | 3,354,559 | |||
Margin variation receivable | 40,625 | |||
Receivable for open maturities | 184,117 | |||
Receivable for TBA sales commitment | 50,793,313 | |||
Receivable for Fund shares sold | 15,014,471 | |||
Receivable for investments sold | 2,932,955 | |||
Deposits at broker for futures contracts | 714,814 | |||
Prepaid expenses and other assets | 28,463 | |||
Total Assets | 765,364,148 | |||
Liabilities: | ||||
Distributions payable | 1,325,932 | |||
Payable for capital shares redeemed | 4,350 | |||
Payable for investments purchased | 16,356,696 | |||
Reverse repurchase agreements (including interest of $55,995) | 148,161,701 | |||
TBA sales commitment, at value (proceeds $50,710,313) | 50,708,442 | |||
Accrued expenses and other payables: | ||||
Investment advisory fees | 277,078 | |||
Accounting fees | 4,215 | |||
Distribution fees | 8,748 | |||
Trustee fees | 402 | |||
Audit fees | 51,365 | |||
Transfer Agent fees | 15,035 | |||
Other | 111,059 | |||
Total Liabilities | 217,025,023 | |||
Net Assets | $ | 548,339,125 | ||
Net Assets Consist Of: | ||||
Capital | $ | 549,122,019 | ||
Distributions in excess of net investment income | (1,325,553 | ) | ||
Accumulated net realized losses from investment transactions, futures contracts and sale commitments | (32,428,732 | ) | ||
Net unrealized appreciation on investments, futures contracts, and sale commitments | 32,971,391 | |||
Net Assets | $ | 548,339,125 | ||
32
FINANCIAL STATEMENTS
|
Statement of Assets and Liabilities (cont.)
Net Assets: | ||||
Class A | $ | 12,141,295 | ||
Class I | 536,197,830 | |||
Total | $ | 548,339,125 | ||
Shares Outstanding (1,000,000,000 shares authorized, 100,000,000 shares registered at $.0000001 par value): | ||||
Class A | 1,237,153 | |||
Class I | 54,693,744 | |||
Total | 55,930,897 | |||
Net Asset Values and Redemption Price Per Share: | ||||
Class A(a) | $ | 9.81 | ||
Class I | $ | 9.80 | ||
Maximum Offering Price Per Share: | ||||
Class A | $ | 10.19 | ||
Maximum Sales Charge - Class A | 3.75 | % |
(a) | For Class A shares, redemption price per share will be reduced by 1.00% for sales of shares within 12 months of purchase (only applicable on purchases of $1 million or more on which no initial sales charge was paid). Such reduction is not reflected in the net asset value and the redemption price per share. |
See notes to financial statements.
33
FINANCIAL STATEMENTS
|
For the Year Ended September 30, 2010
Investment Income: | ||||
Interest income | $ | 31,945,122 | ||
Dividend income | 11,210 | |||
Total Investment Income | 31,956,332 | |||
Expenses: | ||||
Management fees | 3,458,710 | |||
Interest expense | 393,620 | |||
Distribution fees - Class A | 26,371 | |||
Accounting services | 52,914 | |||
Audit fees | 42,114 | |||
Legal fees | 84,595 | |||
Custodian fees | 62,793 | |||
Insurance fees | 8,229 | |||
Trustees’ fees and expenses | 10,143 | |||
Transfer agent fees | 84,456 | |||
Printing and shareholder reports | 17,925 | |||
Registration fees | 54,002 | |||
Other fees and expenses | 128,032 | |||
Net expenses | 4,423,904 | |||
Net Investment Income | 27,532,428 | |||
Realized/Unrealized Gains (Losses) from Investment Transactions and Futures Contracts: | ||||
Net realized gains from investment transactions | 3,905,584 | |||
Net realized losses from sale commitments | (930,996 | ) | ||
Net realized losses from futures contracts | (6,705,515 | ) | ||
Net change in unrealized appreciation/depreciation on investments | 4,952,498 | |||
Net change in unrealized appreciation/depreciation on sale commitments | 4,543 | |||
Net change in unrealized appreciation/depreciation on futures contracts | 396,484 | |||
Net realized/unrealized losses from investments, sales commitments and futures contracts | 1,622,598 | |||
Change in net assets resulting from operations | $ | 29,155,026 | ||
See notes to financial statements.
34
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets
For the Year Ended September 30, 2010 | For the Year Ended September 30, 2009 | |||||||
From Investment Activities: | ||||||||
Operations: | ||||||||
Net investment income | $ 27,532,428 | $ 28,079,284 | ||||||
Net realized losses from investments, sale commitments and futures contracts | (3,730,927 | ) | (8,591,215 | ) | ||||
Net change in unrealized appreciation/depreciation on investments, sale commitments and futures contracts | 5,353,525 | 30,085,498 | ||||||
Change in net assets resulting from operations | 29,155,026 | 49,573,567 | ||||||
Distributions to Class A Shareholders: | ||||||||
From net investment income | (506,316 | ) | (157,849 | ) | ||||
Distributions to Class I Shareholders: | ||||||||
From net investment income | (27,631,062 | ) | (28,179,606 | ) | ||||
Change in net assets resulting from shareholder distributions | (28,137,378 | ) | (28,337,455 | ) | ||||
Capital Transactions: | ||||||||
Proceeds from shares issued | 66,848,481 | 36,928,806 | ||||||
Distributions reinvested | 10,529,652 | 9,642,647 | ||||||
Cost of shares redeemed | (99,866,348 | ) | (41,401,532 | ) | ||||
Change in net assets resulting from capital transactions | (22,488,215 | ) | 5,169,921 | |||||
Net increase (decrease) in net assets | (21,470,567 | ) | 26,406,033 | |||||
Net Assets: | ||||||||
Beginning of year | 569,809,692 | 543,403,659 | ||||||
End of year | $548,339,125 | $569,809,692 | ||||||
Distributions in excess of net investment income | $ (1,325,553) | $ (1,325,287) | ||||||
Share Transactions: | ||||||||
Issued | 6,806,808 | 3,816,303 | ||||||
Reinvested | 1,071,977 | 1,008,944 | ||||||
Redeemed | (10,176,964 | ) | (4,345,147 | ) | ||||
Change in shares resulting from capital transactions | (2,298,179 | ) | 480,100 | |||||
See notes to financial statements.
35
FINANCIAL STATEMENTS
|
For the Year Ended September 30, 2010 | ||||
Cash Provided by Operating Activities: | ||||
Net increase in net assets resulting from operations | $ | 29,155,026 | ||
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: | ||||
Decrease in interest and dividend receivable | 354,439 | |||
Decrease in variation margin receivable | 31,250 | |||
Decrease in deposits at broker for futures contracts | 1,082,194 | |||
Decrease in prepaid expenses and other assets | 2,197 | |||
Increase in segregated cash collateral for reverse repurchase agreements | (5,526,513 | ) | ||
Decrease in receivables for open maturities | 11,041 | |||
Decrease in interest due on reverse repurchase agreements | (24,642 | ) | ||
Decrease in payable to investment adviser | (7,491 | ) | ||
Increase in accrued expenses and other liabilities | 112,683 | |||
Proceeds from sales and paydowns of long-term securities | 163,087,161 | |||
Proceeds from TBA sales commitments | 538,607,975 | |||
Purchases of short-term securities | (2,214,007,057 | ) | ||
Purchases of long-term securities | (116,873,095 | ) | ||
Proceeds from sales of short-term securities | 2,193,345,679 | |||
Closing of TBA sales commitments | (539,609,621 | ) | ||
Amortization of premium and discount – net | 44,038 | |||
Net realized gains from investment transactions | (3,905,584 | ) | ||
Net realized losses from sales commitments | 930,996 | |||
Net change in unrealized (appreciation)/depreciation on investment securities and sale commitments | (4,957,041 | ) | ||
Net Cash Provided by Operating Activities | 41,853,635 | |||
Cash Provided by Financing Activities: | ||||
Proceeds from issuance of shares | 64,834,010 | |||
Cash payments on shares redeemed | (99,865,497 | ) | ||
Cash receipts from reverse repurchase agreements | 1,046,442,352 | |||
Cash payments on reverse repurchase agreements | (1,035,777,890 | ) | ||
Distributions paid to shareholders | (17,823,890 | ) | ||
Net Cash Used in Financing Activities | (42,190,915 | ) | ||
Cash: | ||||
Net decrease in cash | (337,280 | ) | ||
Cash at beginning of year | 337,280 | |||
Cash at end of year | $ | — | ||
Cash Flow Information: | ||||
Cash paid for interest | 418,262 | |||
Noncash Financing Activities: | ||||
Capital shares issued in reinvestment of distributions paid to shareholders | 10,529,652 | |||
See notes to financial statements.
36
|
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37
|
Access Capital Community Investment Fund
(Selected data for a share outstanding throughout the periods indicated)
Year Ended September 30, | Year Ended September 30, | |||||||
2010 | ||||||||
Class A | Class I | |||||||
Per Share Operating Performance: | ||||||||
Net asset value, beginning of period | $ | 9.80 | $ | 9.79 | ||||
Net investment income(d) | 0.46 | 0.49 | ||||||
Realized and unrealized gain (loss) | 0.02 | 0.02 | ||||||
Total from investment operations | 0.48 | 0.51 | ||||||
Less dividends from net investment income | (0.47 | ) | (0.50 | ) | ||||
Net asset value, end of period | $ | 9.81 | $ | 9.80 | ||||
Total Investment Return:(e) | ||||||||
Based on net asset value per share | 5.02 | % | 5.28 | % | ||||
Ratios to Average Net Assets:(f) | ||||||||
Total expenses, net of reimbursement and excluding interest expense and investment structuring fees(g) | 0.97 | % | 0.72 | % | ||||
Total expenses, excluding interest expense(h) | 0.97 | % | 0.72 | % | ||||
Net expenses | 1.04 | % | 0.79 | % | ||||
Net Investment Income | 4.67 | % | 4.94 | % | ||||
Ratios to Average Net Assets, Plus Average Borrowings:(f)(i) | ||||||||
Total expenses, net of reimbursement and excluding interest expense and investment structuring fees(g) | 0.78 | % | 0.58 | % | ||||
Total expenses, excluding interest expense | 0.78 | % | 0.58 | % | ||||
Net expenses | 0.84 | % | 0.64 | % | ||||
Net Investment Income | 3.76 | % | 3.98 | % | ||||
Net assets, end of period (in thousands) | $ | 12,141 | $ | 536,198 | ||||
Portfolio turnover | 9 | % | 9 | % |
(a) | Effective September 30, 2008, the Fund’s fiscal year end changed from May 31 to September 30. |
(b) | For the period January 29, 2009 (commencement of operations) to September 30, 2009. |
(c) | The existing share class was renamed Class I Shares with the commencement of Class A Shares on January 29, 2009. |
(d) | Based on average shares outstanding. |
(e) | Total investment returns exclude the effect of sales charge. |
(f) | Annualized for those periods that are less than one year. |
(g) | To the extent that the Fund’s operating expenses (exclusive of management fees and interest expense) were less then 0.25% of the Fund’s monthly average net assets, the Fund repaid the Fund’s investment adviser and sub-adviser for operating expenses previously borne or reimbursed. |
(h) | Total expenses of the Fund for the period ended September 30, 2009 is 1.36% and 1.09% for the Class A and Class I shares, respectively. Total expenses for the year ended September 30, 2010 would be the same as shown in the financial highlights because there were no fee waivers during the year. |
(i) | These ratios are calculated based upon the average net assets plus average borrowings. |
38
FINANCIAL HIGHLIGHTS
|
Access Capital Community Investment Fund
Period Ended September 30, | For the Year Ended September 30, | Period June 1, 2008 to September 30, | For the Year Ended May 31, | |||||||||||||||||||||||||||||||||
2009 | 2008(a) | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||
Class A(b) | Class I(c) | Class I(c) | Class I(c) | Class I(c) | Class I(c) | |||||||||||||||||||||||||||||||
$ | 9.47 | $ | 9.41 | $ | 9.48 | $ | 9.46 | $ | 9.29 |
$ |
9.82 |
| ||||||||||||||||||||||||
0.31 | 0.50 | 0.16 | 0.46 | 0.44 | 0.45 | |||||||||||||||||||||||||||||||
0.34 | 0.38 | (0.07 | ) | 0.02 | 0.17 | (0.53 | ) | |||||||||||||||||||||||||||||
0.65 | 0.88 | 0.09 | 0.48 | 0.61 | (0.08 | ) | ||||||||||||||||||||||||||||||
(0.32 | ) | (0.50 | ) | (0.16 | ) | (0.46 | ) | (0.44 | ) | (0.45 | ) | |||||||||||||||||||||||||
$ | 9.80 | $ | 9.79 | $ | 9.41 | $ | 9.48 | $ | 9.46 | $ | 9.29 | |||||||||||||||||||||||||
7.11 | % | 9.59 | % | 1.02 | % | 5.19 | % |
|
6.65 |
% | (0.83 | )% | ||||||||||||||||||||||||
1.00 | % | 0.74 | % | 0.86 | % | 0.93 | % |
|
0.79 |
% | 0.74 | % | ||||||||||||||||||||||||
1.25 | % | 0.74 | % | 0.86 | % | 0.93 | % | 0.83 | % | 0.73 | % | |||||||||||||||||||||||||
1.11 | % | 1.06 | % | 1.61 | % | 1.99 | % | 1.48 | % | 1.32 | % | |||||||||||||||||||||||||
4.77 | % | 5.16 | % | 5.17 | % | 4.83 | % | 4.55 | % | 4.72 | % | |||||||||||||||||||||||||
0.81 | % | 0.59 | % | 0.67 | % | 0.75 | % | 0.70 | % |
|
0.65 |
% | ||||||||||||||||||||||||
1.02 | % | 0.59 | % | 0.67 | % | 0.75 | % | 0.74 | % | 0.64 | % | |||||||||||||||||||||||||
0.90 | % | 0.85 | % | 1.25 | % | 1.60 | % | 1.31 | % | 1.16 | % | |||||||||||||||||||||||||
3.89 | % | 4.12 | % | 4.00 | % | 3.88 | % | 4.03 | % | 4.13 | % | |||||||||||||||||||||||||
$ | 8,662 | $ | 561,148 | $ | 543,404 | $ | 513,723 | $ | 474,720 |
$ |
449,324 |
| ||||||||||||||||||||||||
10 | % | 10 | % | 1 | % | 19 | % | 23 | % | 21 | % |
See notes to financial statements.
39
|
September 30, 2010
1. Organization
RBC Funds Trust (the “Trust”) was organized as a Delaware statutory trust on December 16, 2003. Overall responsibility for the management of the Trust is vested in its Board of Trustees (the “Board”). This annual report includes the Access Capital Community Investment Fund (the “Fund”). At its inception in 1998, the Access Capital Strategies Community Investment Fund, Inc., the Fund’s predecessor, elected status as a business development company under the Investment Company Act of 1940 (the “1940 Act”), but withdrew its election on May 30, 2006, and registered as a continuously offered, closed-end interval management company under the 1940 Act. The predecessor fund was reorganized into a series of the Trust, a registered open-end management company under the 1940 Act, effective July 28, 2008.
The Fund offers two share classes: Class A and Class I shares. Class A shares are offered with a 3.75% 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 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)”) acts as the investment advisor for the Trust. The officers of the Trust (“Fund Management”) are also employees of RBC GAM (US) or its affiliates and BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”).
On July 1, 2010, The PNC Financial Services Group, Inc. sold the outstanding stock of PNC Global Investment Servicing Inc. to The Bank of New York Mellon Corporation. At the closing of the sale, PNC Global Investment Servicing (U.S.) Inc. changed its name to BNY Mellon Investment Servicing (US) Inc. The Fund’s investment objective is to invest in geographically specific debt securities located in portions of the United States designated by Fund investors. The Fund seeks to achieve its investment objective by investing primarily in debt securities specifically designed to support underlying economic activities such as affordable housing, education, small business lending, and job-creating activities in areas of the United States designated by Fund investors.
2. Significant Accounting Policies
Summarized below are the significant accounting policies of the Fund. The policies conform to accounting principles generally accepted in the United States of America (“GAAP”). Fund Management follows these policies when preparing financial statements. 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.
Security Valuation:
Bonds and other fixed income securities, including TBA commitments, are generally valued on the basis of prices furnished by pricing services approved by the Trust’s Board. The pricing services utilize both dealer-supplied valuations and electronic data processing techniques that take into account appropriate factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity and type of issue. Valuations of certain mortgage backed securities that qualify under the Community Reinvestment Act (“CRA”) may also include adjustments to reflect the CRA premium indicated by the independent pricing agent to reflect the higher valuations accorded these securities in the market for their geographically or other targeted nature. Swaptions are fair valued using methodologies approved by the Trust’s Board. These valuation techniques take into account mutiple factors, including fundamental security analytical data, information from broker-dealers, market spreads and interest rates.Short-term debt obligations, with less than 60 days to maturity at time of purchase, are valued at amortized cost unless Fund Management determines that amortized cost no longer approximates market value. In such cases where a security price is unavailable, or where Fund
40
NOTES TO FINANCIAL STATEMENTS
|
Management determines that the value provided by the pricing services or amortized cost does not approximate fair value, the Board has approved pricing and valuation procedures to determine a security’s fair value. Some of the factors which may be considered in determining fair value are 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; and trading in similar securities. Investments in open-end investment companies are valued at net asset value. Exchange traded financial futures are valued at the settlement price as established by the exchange on which they are traded.
Financial Instruments:
Reverse Repurchase Agreements
To obtain short-term financing, the Fund may enter into reverse repurchase agreements with primary dealers that report to the Federal Reserve Bank of New York or the 100 largest U.S. commercial banks, who are deemed creditworthy under guidelines approved by the Board. Interest on the value of the reverse repurchase agreements is based upon competitive market rates at the time of issuance. At the time the Fund enters into a reverse repurchase agreement, it will establish and maintain a segregated account with the custodian containing qualifying assets having a value, including accrued interest, not less than the repurchase price. Based on requirements with certain exchanges and third party brokers-dealers, the Fund may also be required to deliver or deposit securities or cash as collateral. If the counterparty to the transaction is rendered insolvent, the ultimate realization of the securities to be repurchased by the Fund may be delayed or limited. For the year ended September 30, 2010, the average amount borrowed was approximately $133,360,930 and the daily weighted average interest rate was 0.30%.
Details of open reverse repurchase agreements at September 30, 2010 were as follows:
Rate | Trade Date | Maturity Date | Net Closing Amount | Par | ||||||||
Goldman Sachs | 0.29% | 7/01/10 | 10/01/10 | $(35,565,338) | $(35,539,000) | |||||||
Goldman Sachs | 0.28% | 8/10/10 | 10/07/10 | (28,587,672) | (28,574,782) | |||||||
Mizuho Securities | 0.30% | 8/17/10 | 10/14/10 | (21,489,381) | (21,479,000) | |||||||
Mizuho Securities | 0.27% | 9/07/10 | 10/21/10 | (31,675,449) | (31,665,000) | |||||||
Goldman Sachs | 0.27% | 9/14/10 | 10/28/10 | (30,858,103) | (30,847,923) | |||||||
Details of underlying collateral pledged for open reverse repurchase agreements in addition to the segregated cash collateral shown on the Statement of Assets and Liabilities at September 30, 2010 were as follows: | ||||||||||||
Description | Rate | Maturity | Par | Value | ||||||||
Goldman Sachs 7/01/10 to 10/01/10 | ||||||||||||
Fannie Mae Pool #806754 | 4.50% | 9/01/34 | $3,326,843 | $3,499,459 | ||||||||
Fannie Mae Pool #727312 | 5.00% | 9/01/33 | 2,877,449 | 3,055,212 | ||||||||
Fannie Mae Pool #663159 | 5.00% | 7/01/32 | 4,942,430 | 5,240,659 | ||||||||
Fannie Mae Pool #885724 | 5.50% | 6/01/36 | 2,810,951 | 2,996,465 | ||||||||
Fannie Mae Pool #844361 | 5.50% | 11/01/35 | 3,639,003 | 3,891,674 | ||||||||
Fannie Mae Pool #829649 | 5.50% | 3/01/35 | 1,561,826 | 1,675,151 | ||||||||
Fannie Mae Pool #806761 | 5.50% | 9/01/34 | 4,435,702 | 4,757,553 | ||||||||
Fannie Mae Pool #257892 | 5.50% | 2/01/38 | 2,197,661 | 2,349,101 | ||||||||
Freddie Mac Pool #A25310 | 5.00% | 6/01/34 | 1,984,993 | 2,100,178 | ||||||||
Freddie Mac Pool #A28241 | 5.50% | 10/01/34 | 1,435,760 | 1,537,717 |
41
NOTES TO FINANCIAL STATEMENTS
|
Description | Rate | Maturity Date | Par | Value | ||||||
Freddie Mac Pool #A61916 | 6.00% | 6/01/37 | $2,979,974 | $ 3,200,437 | ||||||
Freddie Mac Pool #A66156 | 6.50% | 9/01/37 | 1,746,955 | 1,905,046 | ||||||
$36,208,652 | ||||||||||
Goldman Sachs 8/10/10 to 10/07/10 | ||||||||||
Fannie Mae Pool #AC2109 | 4.50% | 7/01/39 | $2,197,112 | $ 2,291,886 | ||||||
Fannie Mae Pool #AC6307 | 5.00% | 12/01/39 | 2,247,846 | 2,378,987 | ||||||
Fannie Mae Pool #990510 | 5.50% | 8/01/38 | 1,280,019 | 1,361,824 | ||||||
Fannie Mae Pool #986957 | 5.50% | 7/01/38 | 1,213,334 | 1,290,877 | ||||||
Fannie Mae Pool #702478 | 5.50% | 6/01/33 | 2,173,134 | 2,334,889 | ||||||
Fannie Mae Pool #952632 | 6.00% | 7/01/37 | 1,915,962 | 2,071,180 | ||||||
Fannie Mae Pool #952598 | 6.00% | 7/01/37 | 1,622,206 | 1,767,851 | ||||||
Fannie Mae Pool #944502 | 6.00% | 6/01/37 | 1,485,011 | 1,603,924 | ||||||
Freddie Mac Pool #A46735 | 5.00% | 8/01/35 | 1,477,675 | 1,561,575 | ||||||
Freddie Mac Pool #A40538 | 5.00% | 12/01/35 | 1,614,273 | 1,705,928 | ||||||
Freddie Mac Pool #A37185 | 5.00% | 9/01/35 | 1,261,993 | 1,333,647 | ||||||
Freddie Mac Pool #A14325 | 5.00% | 9/01/33 | 1,167,807 | 1,237,397 | ||||||
Freddie Mac Pool #A63456 | 5.50% | 6/01/37 | 2,758,606 | 2,948,744 | ||||||
Freddie Mac Pool #A59530 | 5.50% | 4/01/37 | 1,253,540 | 1,330,539 | ||||||
Freddie Mac Pool #A42803 | 5.50% | 2/01/36 | 1,396,591 | 1,490,966 | ||||||
Freddie Mac Pool #A67630 | 6.00% | 11/01/37 | 1,200,201 | 1,294,995 | ||||||
Freddie Mac Pool #A66116 | 6.00% | 9/01/37 | 1,319,450 | 1,417,065 | ||||||
$29,422,274 | ||||||||||
Mizuho Securities 8/17/10 to 10/14/10 | ||||||||||
Fannie Mae Pool #AD1942 | 4.50% | 1/01/40 | $3,430,195 | $ 3,593,166 | ||||||
Fannie Mae Pool #387590 | 4.90% | 9/01/15 | 9,328,850 | 10,404,748 | ||||||
Fannie Mae Pool #777621 | 5.00% | 2/01/34 | 2,830,808 | 3,005,690 | ||||||
Fannie Mae Pool #386608 | 5.37% | 11/01/21 | 4,627,716 | 5,106,903 | ||||||
$22,110,507 | ||||||||||
Mizuho Securities 9/07/10 to 10/21/10 | ||||||||||
Fannie Mae Pool #AD1585 | 4.50% | 2/01/40 | $4,027,887 | $ 4,219,258 | ||||||
Fannie Mae Pool #AD1988 | 4.50% | 2/01/40 | 4,891,638 | 5,124,045 | ||||||
Fannie Mae Pool #AD4456 | 4.50% | 4/16/40 | 3,467,360 | 3,632,098 | ||||||
Fannie Mae Pool #AC7199 | 5.00% | 12/01/39 | 4,812,756 | 5,093,534 | ||||||
Fannie Mae Pool #AD1560 | 5.00% | 3/01/40 | 3,388,616 | 3,586,311 | ||||||
Fannie Mae Pool #908672 | 5.50% | 1/01/37 | 1,280,209 | 1,364,699 | ||||||
Fannie Mae Pool #AA0527 | 5.50% | 12/01/38 | 3,084,240 | 3,304,483 |
42
NOTES TO FINANCIAL STATEMENTS
|
Description | Rate | Maturity Date | Par | Value | ||||||
Ginnie Mae Pool #713519 | 6.00% | 7/01/39 | $4,725,203 | $ 5,197,956 | ||||||
$31,522,384 | ||||||||||
Goldman Sachs 9/14/10 to 10/28/10 | ||||||||||
Fannie Mae Pool #AD1471 | 4.50% | 2/01/39 | $2,916,020 | $ 3,054,563 | ||||||
Fannie Mae Pool #AD4458 | 4.50% | 4/01/40 | 2,829,354 | 2,949,633 | ||||||
Fannie Mae Pool #MC0171 | 4.50% | 9/01/39 | 1,871,284 | 1,960,190 | ||||||
Fannie Mae Pool #934941 | 5.00% | 8/01/39 | 2,797,050 | 2,960,232 | ||||||
Fannie Mae Pool #AA0526 | 5.00% | 12/01/38 | 1,883,422 | 1,998,199 | ||||||
Fannie Mae Pool #AC1463 | 5.00% | 8/01/39 | 2,294,157 | 2,416,529 | ||||||
Fannie Mae Pool #AD1470 | 5.00% | 2/01/39 | 3,001,329 | 3,176,430 | ||||||
Freddie Mac Pool #A38830 | 5.00% | 5/01/35 | 1,637,870 | 1,730,866 | ||||||
Freddie Mac Pool #A34999 | 5.50% | 4/01/35 | 1,834,737 | 1,958,721 | ||||||
Freddie Mac Pool #A66061 | 5.50% | 8/01/37 | 2,237,534 | 2,374,975 | ||||||
Ginnie Mae Pool #698113 | 4.50% | 5/15/39 | 2,407,481 | 2,545,178 | ||||||
Ginnie Mae Pool #729018 | 4.50% | 2/15/40 | 2,029,166 | 2,148,948 | ||||||
Ginnie Mae Pool #726550 | 5.00% | 10/01/39 | 2,985,806 | 3,199,028 | ||||||
$32,473,492 | ||||||||||
Derivatives
The Fund may use derivative instruments, including futures, forwards, options, indexed securities, swaps and inverse securities for hedging purposes only. Derivatives allow the Fund to increase or decrease its risk exposure more quickly and efficiently than other types of instruments. Losses may arise if the price of the contract decreases due to an unfavorable change in the price of the underlying instrument or if the counterparty does not perform under the contract. To the extent amounts due to the Fund from their counterparties are not fully collateralized contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance. The Fund’s maximum risk of loss from counterparty credit risk on over-the-counter derivatives is generally the aggregate unrealized gain in excess of any collateral pledged by the counterparty to the Fund. For over-the-counter purchased options, the Fund bears the risk of loss in the amount of the premiums paid and change in value of the options should the counterparty not perform under the contracts. Written options by the Fund do not give rise to counterparty credit risk, as written options obligate the Fund to perform and not the counterparty. Counterparty risk related to exchange traded financial futures contracts and options is minimal because of the protection against defaults provided by the exchange on which they trade. 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 Fund, in which case any losses on the holdings being hedged may not be reduced and may be increased. There can be no assurance that the Fund’s hedging strategy will reduce risk or that hedging transactions will be available or cost effective. The Fund is subject to interest rate risk in the normal course of pursuing its investment objectives by investing in various derivative financial instruments, as described below.
43
NOTES TO FINANCIAL STATEMENTS
|
Fair Values of Derivative Instruments as of September 30, 2010*:
Derivative Instruments Categorized by Risk Exposure | Statement of Assets and Liabilities Location | Amount | ||
Asset Derivatives | ||||
Interest Rate Contracts | Assets - Margin Variation Receivable | $40,625 |
* For open derivative instruments as of September 30, 2010, see the following section for financial futures contracts.
The effect of Derivative Instruments on the Statement of Operations during the year ended September 30, 2010 is as follows:
Derivative Instruments Categorized by Risk Exposure | Net Realized Losses from Purchased Swaptions | Net Realized Losses from Futures Contracts | Net Change in Unrealized Appreciation/Depreciation on Futures Contracts | |||||||||
Interest Rate Contracts | $(1,438,750) | $(6,705,515) | $396,484 |
For the year ended September 30, 2010, the average volume of derivative activities are as follows:
Purchased Swaptions (Cost) | Futures Short Positions | |||||
$4,127,813 | 596 |
Financial Futures Contracts
The Fund entered into futures contracts in an effort to manage the duration of the portfolio or to hedge against 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.
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 Fund each day, depending on the daily fluctuations in the fair value of the underlying index. A Fund would record an unrealized gain or loss each day equal to these daily payments.
Financial futures contracts involve minimal counterparty risk since financial futures contracts are guaranteed against default by the exchange on which they trade.
44
NOTES TO FINANCIAL STATEMENTS
|
The Fund had the following open futures contracts at September 30, 2010:
Number of | Expiration Date | Unrealized | Notional | Counterparty | ||||||||||||
90 Day Euro | ||||||||||||||||
Dollar | 25 | March, 2011 | $1,562 | $ | 6,225,938 | Barclays Capital | ||||||||||
25 | March, 2012 | (312) | 6,197,500 | Barclays Capital | ||||||||||||
25 | March, 2013 | (3,125) | 6,154,688 | Barclays Capital | ||||||||||||
25 | June, 2011 | 1,562 | 6,221,250 | Barclays Capital | ||||||||||||
25 | June, 2012 | (1,562) | 6,186,875 | Barclays Capital | ||||||||||||
25 | June, 2013 | (3,437) | 6,142,500 | Barclays Capital | ||||||||||||
25 | September, 2011 | 1,562 | 6,215,313 | Barclays Capital | ||||||||||||
25 | September, 2012 | (2,500) | 6,176,563 | Barclays Capital | ||||||||||||
25 | September, 2013 | (3,750) | 6,130,313 | Barclays Capital | ||||||||||||
25 | December, 2010 | 2,187 | 6,229,688 | Barclays Capital | ||||||||||||
25 | December, 2011 | 937 | 6,207,188 | Barclays Capital | ||||||||||||
25 | December, 2012 | (3,437) | 6,164,688 | Barclays Capital | ||||||||||||
Ten Year | ||||||||||||||||
U.S. Treasury Notes | 400 | December, 2010 | (173,828) | 50,244,922 | Barclays Capital | |||||||||||
Thirty Year | ||||||||||||||||
U.S. Treasury Bonds | 160 | December, 2010 | (210,000) | 21,185,000 | Barclays Capital |
Details of underlying collateral pledged for open futures contracts in addition to the deposit at brokers shown on the Statement of Assets and Liabilities at September 30, 2010 were as follows:
Description | Yield | Maturity Date | Par | Market Value | ||||
Freddie Mac Discount Note | 0.42% | 05/02/11 | $2,000,000 | $1,997,752 |
Options
The Fund may write (or sell) put and call options on the securities that the Fund is authorized to buy or already holds in its portfolio. A Fund may also purchase put and call options. A call option gives the purchaser the right to buy, and the writer the obligation to sell, the underlying security at the agreed-upon exercise (or “strike”) price during the option period. A put option gives the purchaser the right to sell, and the writer the obligation to buy, the underlying security at the strike price during the option period. Purchasers of options pay an amount, known as a premium, to the option writer in exchange for the right under the option contract. The Fund does not have any outstanding options as of September 30, 2010.
Swaptions
The Fund may purchase or write swaptions in an attempt to gain additional protection against the effects of interest rate fluctuations. Swap options (swaptions) are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swap option is granting or buying the right to enter into a previously agreed upon interest rate swap agreement at any time before the expiration of the option (interest rate risk). In purchasing and writing swaptions, the Fund bears the risk of an unfavorable change in the price of the underlying interest rate swap or the risk that the Fund may not be able to enter into a closing transaction due to an illiquid market. The Fund executes transactions in over-the-counter swaptions. Transactions in over-the-counter swaptions may expose the Fund to the risk of default by the counterparty to the transaction. In the event of default by the counterparty, the Fund’s maximum amount of loss is the premium paid (as purchaser) or the unrealized loss of the contract (as writer).The Fund does not have any outstanding call swaptions as of September 30, 2010.
45
NOTES TO FINANCIAL STATEMENTS
|
TBA Commitments
The Fund may enter into to be announced (“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 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”.
Mortgage Backed Securities
Because the Fund will focus on community development investments, such as securities backed by commercial and/or residential mortgage loans, it will be affected by risks not typically associated with funds that do not specialize in community development investments. These risks include credit and prepayment risk due to default on underlying loans within a security. Changes in economic conditions, including delinquencies and/or defaults or assets underlying these securities, can affect the value, income and/or liquidity of such positions.
In addition, the Fund invests in certain mortgage backed securities that qualify under the CRA in which the Fund may pay a premium for the geographically or other targeted nature of the securities. There can be no guarantee, however, that a similar premium will be received if the security is sold by the Fund.
Credit Enhancement
Certain obligations held in the Fund 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 (i.e., AMBAC and MBIA).
Fair Value Measurements:
Various inputs are used in determining the fair value of investments which 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 - 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.
— Level 3 - 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).
46
NOTES TO FINANCIAL STATEMENTS
|
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The summary of inputs used to determine the fair valuation of the Fund’s investments as of September 30, 2010 is as follows:
Level 1 | Level 2 Observable Inputs | Level 3 Significant Unobservable Inputs | Total | |||||||||||||
Assets: | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Investment Company | $ | 28,716,453 | $ | — | $— | $ | 28,716,453 | |||||||||
Municipal Bonds | — | 18,610,323 | — | 18,610,323 | ||||||||||||
Corporate Bonds | — | 2,897,347 | — | 2,897,347 | ||||||||||||
U.S. Government Agency Backed Mortgages | — | 570,772,354 | — | 570,772,354 | ||||||||||||
U.S. Government Agency Obligations | — | 52,523,602 | — | 52,523,602 | ||||||||||||
Promissory Notes | — | 10,910,752 | — | 10,910,752 | ||||||||||||
$ | 28,716,453 | $ | 655,714,378 | $— | $ | 684,430,831 | ||||||||||
Other Financial Instruments(*) | ||||||||||||||||
Interest Rate Contracts | $ | 7,810 | $ | — | $— | $ | 7,810 | |||||||||
Total Assets | $ | 28,724,263 | $ | 655,714,378 | $— | $ | 684,438,641 | |||||||||
Liabilities: | ||||||||||||||||
Other Financial Instruments(*) | ||||||||||||||||
Interest Rate Contracts | $ | (401,951) | $ | — | $— | $ | (401,951) | |||||||||
* Other financial instruments are instruments not reflected in the Schedule of Portfolio Investments, such as futures contracts which are shown at the unrealized appreciation/(depreciation) on the investment.
During the year ended September 30, 2010, the Fund recognized no significant transfers to/from level 1 or 2. Additional disclosure surrounding the activity in level 3 fair value measurement will be effective for the fiscal years beginning after December 15, 2010. Management is currently evaluating the impact it will have on the financial statement disclosure.
Investment Transactions and Income:
Investment transactions are recorded one business day after trade date, except for on the last day of each fiscal quarter end, when they are recorded on trade date. Dividend income is recorded on the ex-dividend date. Realized gains and losses from investment transactions are calculated based on the costs of the specific security (also known as identified cost basis). Interest income is recognized on the accrual basis and includes, where applicable, the amortization and 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.
Distributions to Shareholders:
The Fund pays 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. Dividends will also be paid at any time during the month upon total redemption of shares in an account. 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 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
47
NOTES TO FINANCIAL STATEMENTS
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be permanent (e.g., reclassification of paydown gains and losses, and expiring capital loss carryforward), they are reclassified within a Fund’s capital account based on their federal tax basis treatment. Such differences are not reflected in the calculation of the Financial Highlights.
For the year ended September 30, 2010, permanent difference reclassification amounts were as follows:
Increase Undistributed Net Investment Income | Decrease Accumulated Realized Loss | |||||
$604,684 | $(604,684) |
3. Agreements and Other Transactions with Affiliates
RBC GAM (US) serves as investment advisor to the Fund. The Advisor has agreed to waive or limit fees through January 31, 2011, to maintain expenses (excluding interest expense, management fees and distribution fees) at 0.20% of the Fund’s average monthly gross assets less liabilities, other than indebtness for borrowing. The Fund will carry forward, for a period not to exceed 12 months from the date on which a waiver or reimbursement is made by the Advisor, any expenses in excess of the expense limitation and repay the Advisor such amounts, provided the Fund is able to effect such repayment and remain in compliance with the expense limitation disclosed in the effective prospectus. During the year ended September 30, 2010, no reimbursements were made to the Advisor.
Under the terms of the Fund’s management agreement, the Advisor receives from the Fund an annual management fee, paid monthly, of 50 basis points (0.50%) of the Fund’s average daily total assets less liabilities, other than indebtedness for borrowing. For purposes of calculating the management fee, assets purchased with borrowed monies are included in the total that is subject to the management fee. As a result, the Advisor has an incentive to use leverage so as to increase the amount of assets upon which it may charge a fee. As of September 30, 2010, the impact of leverage raised the management fee to approximately 62 basis points (0.62%) of the Fund’s average net assets.
The RBC Funds currently pay the independent Trustees (Trustees of the Trust who are not directors, officers or employees of the adviser, administrator or distributor) an annual retainer of $30,000. 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 $5,000 for each in-person Board meeting attended, a meeting fee of $1,000 for each telephonic or Special Board meeting attended, and a $1,000 ($1,500 effective October 1, 2010) fee for each Board committee meeting attended and are reimbursed for all out-of-pocket expenses relating to attendance at such meetings.
Expense, Investment Income and Gain/Loss Allocation:
The Fund pays the expenses that are directly related to its operations, such as custodian fees or adviser fees. Expenses incurred by the Trust, such as trustee or legal fees, are allocated to the Fund either proportionately based upon the 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 the Fund are charged expenses specific to that class, such as distribution fees. Within the 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 upon the proportion of relative net assets.
4. Fund Distribution:
The Fund has adopted a Master Distribution 12b-1 Plan (the “Plan”) in which Tamarack Distributors, Inc. (through February 15, 2010), and Quasar Distributors LLC (effective February 16, 2010) (the “Distributor”) acts as the Fund’s distributor. Tamarack Distributors Inc. was an affiliate of RBC GAM (US) and Quasar Distributors LLC is not affiliated. The Plan permits the Fund to make payments for, or to reimburse the Distributor monthly 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 following chart shows the current Plan fee rate for Class A.
48
NOTES TO FINANCIAL STATEMENTS
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Class A | ||||
12b-1 Plan Fee | 0.25% |
Plan fees are based on average daily net assets of Class A. The Distributor, subject to applicable legal requirements, may waive the Plan fee voluntarily, in whole or in part. For the year ended September 30, 2010, 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 September 30, 2010 were as follows:
Purchases(Excl. U.S. Gov’t.) | Sales(Excl. U.S. Gov’t.) | Purchases of U.S. Gov’t. | Sales of U.S. Gov’t. | |||
$ 128,968,968 | $60,940,413 | $— | $— |
6. Capital Share Transactions:
The Trust is authorized to issue 1,000,000,000 shares of beneficial interest (“shares outstanding”) with par value of $.0000001. Transactions in shares of the Fund are summarized below:
For the Year Ended September 30, 2010 | For the Period Ended September 30, 2009* | |||||||||
CAPITAL TRANSACTIONS: | ||||||||||
Class A | ||||||||||
Proceeds from shares issued | $ 4,694,851 | $ 8,519,665 | ||||||||
Distributions reinvested | 124,567 | 65,802 | ||||||||
Cost of shares redeemed | (1,346,445) | (76,189) | ||||||||
Change in Class A | $ 3,472,973 | $ 8,509,278 | ||||||||
Class I | ||||||||||
Proceeds from shares issued | $ 62,153,630 | $ 28,409,141 | ||||||||
Distributions reinvested | 10,405,085 | 9,576,845 | ||||||||
Cost of shares redeemed | (98,519,903) | (41,325,343) | ||||||||
Change in Class I | $(25,961,188) | $ (3,339,357) | ||||||||
Change in net assets resulting from capital transactions | $(22,488,215) | $ 5,169,921 | ||||||||
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NOTES TO FINANCIAL STATEMENTS
|
For the Year Ended September 30, 2010 | For the Period Ended September 30, 2009* | |||||||||
SHARE TRANSACTIONS: | ||||||||||
Class A | ||||||||||
Issued | 477,077 | 885,359 | ||||||||
Reinvested | 12,657 | 6,815 | ||||||||
Redeemed | (136,866 | ) | (7,889 | ) | ||||||
Change in Class A | 352,868 | 884,285 | ||||||||
Class I | ||||||||||
Issued | 6,329,731 | 2,930,944 | ||||||||
Reinvested | 1,059,320 | 1,002,129 | ||||||||
Redeemed | (10,040,098 | ) | (4,337,258 | ) | ||||||
Change in Class I | (2,651,047 | ) | (404,185 | ) | ||||||
Change in shares resulting from capital transactions | (2,298,179 | ) | 480,100 | |||||||
* January 29, 2009 (commencement of operations) through September 30, 2009 for Class A and year ended September 30, 2009 for Class I.
7. Federal Income Taxes:
It is the policy of the 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 the Fund.
As of September 30, 2010 the tax cost of securities and the breakdown of unrealized appreciation (depreciation) was as follows:
Tax Cost of Securities | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation | |||||
$ 651,067,170 | $35,132,713 | $(1,769,052) | $33,363,661 |
The tax character of distributions were as follows:
Distributions Paid From | ||||||||
Ordinary Income | Total Distributions Paid | |||||||
For the year ended September 30, 2010 | $28,353,542 | $28,353,542 | ||||||
For the year ended September 30, 2009 | 28,373,918 | 28,373,918 |
50
NOTES TO FINANCIAL STATEMENTS
|
As of September 30, 2010, the components of accumulated earnings/(losses) and tax character of distritutions paid are as follows:
Undistributed Ordinary Income | Accumulated | Distributions Payable | Deferred Post October Losses | Accumulated Other Losses | Unrealized | Total Accumulated Losses | ||||||
$379 | $379 | $(1,325,932) | $(4,199,223) | $(28,623,650) | $33,365,532 | $(782,894) |
As of September 30, 2010, the Fund had capital loss carryforwards for federal income tax purposes as follows:
Capital Loss Carryforward | Expires | |||||||
$ 1,911,397 | 2011 | |||||||
3,756,334 | 2012 | |||||||
659,184 | 2013 | |||||||
27,743 | 2014 | |||||||
2,484,167 | 2015 | |||||||
8,197,543 | 2016 | |||||||
11,587,282 | 2018 |
Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (for the tax years ended September 30 of the years 2008, 2009, 2010 and the tax years ended May 31 of the years 2007 and 2008.), and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund’s 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.
8. Subsequent Events.
Management has evaluated the impact of all subsequent events on the Fund and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.
51
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To the Shareholders and Board of Trustees of Access Capital Community Investment Fund:
We have audited the accompanying statement of assets and liabilities, including the schedule of portfolio investments, of Access Capital Community Investment Fund (the “Fund”), one of the portfolios constituting the RBC Funds Trust (the “Trust”), as of September 30, 2010, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2010, by correspondence with the Fund’s custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Access Capital Community Investment Fund as of September 30, 2010, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Chicago, Illinois
November 23, 2010
52
OTHER FEDERAL INCOME TAX INFORMATION (UNAUDITED)
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The Fund designates a portion of the income dividends distributed during the fiscal year ended September 30, 2010, as qualified interest income as defined in the Internal Revenue Code as 99.99%.
The designation is based on financial information available as of the date of this annual report and, accordingly, is subject to change. It is the intention of the Fund to designate the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.
53
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Independent Trustees(1)
T. Geron Bell (69)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: President of Twins Sports, Inc. (parent company of the Minnesota Twins) (2002-present); prior thereto President of the Minnesota Twins Baseball Club Incorporated (1987-2002)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: None
Lucy Hancock Bode (59)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: Healthcare consultant (self-employed)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: BioSignia
Leslie H. Garner Jr. (60)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: President and CEO, The Greater Cedar Rapids Community Foundation (2010 to present); previously, President, Cornell College
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: None
Ronald James (59)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: President and Chief Executive Officer, Center for Ethical Business Cultures (2000-present)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: Best Buy Co. Inc.; Bremer Financial Corporation
John A. MacDonald (61)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: Vice President and Treasurer, Hall Family Foundation
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: None
H. David Rybolt (68)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: Consultant, HDR Associates (management consulting)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: None
54
MANAGEMENT (Unaudited)
|
Independent Trustees(1)
James R. Seward (58)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since January 2004)
Principal Occupation(s) During Past 5 Years: Private investor (2000-present); CFA
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: Syntroleum Corporation; Brookdale Senior Living Inc., LabOne Inc.; Concorde Colleges; American Retirement Corp.
William B. Taylor (65)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since September 2005)
Principal Occupation(s) During Past 5 Years: Consultant (2003-present); prior thereto Partner (until 2003) Ernst & Young LLP
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Other Director/Trustee Positions Held by Trustee: J.E. Dunn Vermont Assurance
Interested Trustees(1)(2)
Erik R. Preus (45)(4)
Position Term of Office and Length of Time Served with the Trust: Indefinite (Trustee since March 2006)
Principal Occupation(s) During Past 5 Years: President and Chief Executive Officer, RBC Funds Trust (2006-present); Head, Strategic Relationships Group, RBC Global Asset Management (U.S.) Inc. (2009-present); Head of Retail Asset Management, RBC Global Asset Management (U.S.) Inc. (2006-2009); Chief Operating Officer, RBC Global Asset Management (U.S.) Inc. (2005-2006); Director, Investment Consulting Services, RBC Dain Rauscher Inc. (2004-2005); Director, Voyageur Advisory Services, RBC Global Asset Management (U.S.) Inc. (2003-2004)
Number of Portfolios in Fund Complex Overseen by Trustee: 18
Executive Officers(1)(2)(3)
Erik R. Preus (45)
Position Term of Office and Length of Time Served with the Trust: President and Chief Executive Officer since September 2006
Principal Occupation(s) During Past 5 Years: Head, Strategic Relationships Group, RBC Global Asset Management (U.S.) Inc. (2009-present); Head of Retail Asset Management, RBC Global Asset Management (U.S.) Inc. (2006-2009); Chief Operating Officer, RBC Global Asset Management (U.S.) Inc.(2005-2006); Director, Investment Consulting Services, RBC Dain Rauscher Inc. (2004-2005); Director, Voyageur Advisory Services, RBC Global Asset Management (U.S.) Inc. (2003-2004)
James A. Gallo (46)
Address: BNY Mellon Investment Servicing (US) Inc., 760 Moore Road, King of Prussia, PA 19406
Position Term of Office and Length of Time Served with the Trust: Treasurer since October 2007
Principal Occupation(s) During Past 5 Years: Senior Vice President and Managing Director, BNY Mellon Investment Servicing (US) Inc. (2002-present); Vice President and Executive Director, Morgan Stanley (1998-2002)
55
MANAGEMENT (Unaudited)
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Executive Officers(1)(2)(3)
Kathleen A. Hegna (43)
Position Term of Office and Length of Time Served with the Trust: Chief Financial Officer and Principal Accounting Officer since May 2009
Principal Occupation(s) During Past 5 Years: Associate Vice President and Director, Mutual Fund Accounting and Administration, RBC Global Asset Management (U.S.) Inc. (2009-present); Senior Compliance Officer, RBC Global Asset Management (U.S.) Inc. (2006-2009); Director, Asset Management Compliance, RiverSource Investments (2005-2006); Manager, Business Planning and Financial Analysis-Mutual Funds, Ameriprise Financial (2001-2005)
Kathleen A. Gorman (46)
Position Term of Office and Length of Time Served with the Trust: Chief Compliance Officer since April 2006 and Assistant Secretary since September 2006
Principal Occupation(s) During Past 5 Years: Chief Compliance Officer, RBC Funds Trust (2006-present; Chief Compliance Officer, RBC Global Asset Management (U.S.) Inc. (2006-2009); Director, Asset Management Compliance, RiverSource Investments (2004-2006); Senior Compliance Officer, U.S. Bancorp Asset Management (2002-2004)
Lee Greenhalgh (39)
Position Term of Office and Length of Time Served with the Trust: Chief Legal Officer and Secretary since 2008
Principal Occupation(s) During Past 5 Years: Associate General Counsel, RBC Capital Markets, LLC (2006-present); Asset Management Compliance, RiverSource Investments (2004-2006); Procurement Attorney, Ameriprise Financial (2002-2004)
John M. Huber (42)
Position Term of Office and Length of Time Served with the Trust: Chief Investment Officer, Fixed Income Products since February 2005
Principal Occupation(s) During Past 5 Years: Chief Investment Officer, Fixed Income, RBC Global Asset Management (U.S.) Inc. (2004-present); Senior Portfolio Manager and Principal, Galliard Capital Management (1995-2004)
Gordon Telfer (44)
Position Term of Office and Length of Time Served with the Trust: Chief Investment Officer, Equity products since October 2009, Portfolio Strategist, from March 2004 to October 2009
Principal Occupation(s) During Past 5 Years: Director of Equities - U. S., RBC Global Asset Management (U.S.) Inc. (June 2009 to Present); Head of Growth Equities, RBC Global Asset Management (U.S.) Inc. (2008-2009); Senior Portfolio Manager, RBC Global Asset Management (U.S.) Inc. (2004-2008), Managing Director, RBC Global Asset Management (U.S.) Inc. (2007-present); Vice President, RBC Global Asset Management (U.S.) Inc. (2004-2007)
56
MANAGEMENT (Unaudited)
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Executive Officers(1)(2)(3)
Access Capital Community Investment Fund Officers(1)(2)(3)
Ronald A. Homer (63)
Position Term of Office and Length of Time Served with the Trust: President since July 2008
Principal Occupation(s) During Past 5 Years: Managing Director, RBC Global Asset Management
(U.S.) Inc. and President, Access Capital Community Investment Fund (July 2008-present); Chief Executive Officer and Co-Managing Member, Access Capital Strategies LLC (1997-July 2008); Chairman: Access Capital Strategies Community Investment Fund (1998-July 2008)
(1) | Except as otherwise noted, the address for each Trustee/Officer is RBC Funds Trust, 100 South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402. |
(2) | 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. |
(3) | Each officer serves in such capacity for an indefinite period of time until his or her removal, resignation or retirement. |
(4) | Erik R. Preus has been determined to be an interested Trustee by virtue of his affiliation with the Trust. |
The Funds’ 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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SHARE CLASS INFORMATION (UNAUDITED)
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The Access Capital Community Investment Fund offers Class A and Class I shares.
Class A
Class A shares are available for purchase primarily through investment advisors, broker-dealers, banks and other financial services intermediaries. Class A shares of the Fund are currently subject to a maximum up-front sales charge of 3.75% 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% 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.
58
SUPPLEMENTAL INFORMATION (UNAUDITED)
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Shareholder Expense Examples
As a shareholder of the Access Capital Community Investment Fund, 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 Fund 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 April 1, 2010 through September 30, 2010.
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.
Annualized | ||||||||
Beginning | Ending | Expenses Paid | Expense Ratio | |||||
Account Value | Account Value | During Period* | During Period | |||||
4/1/10 | 9/30/10 | 4/1/10-9/30/10 | 4/1/10-9/30/10 | |||||
Class A | $1,000.00 | $1,029.50 | $5.39 | 1.06% | ||||
Class I | $1,000.00 | $1,030.80 | $4.12 | 0.81% |
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s 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 | Ending | Expenses Paid | Annualized Expense Ratio | |||||
Account Value | Account Value | During Period* | During Period | |||||
4/1/10 | 9/30/10 | 4/1/10-9/30/10 | 10/1/09-3/31/10 | |||||
Class A | $1,000.00 | $1,019.75 | $5.37 | 1.06% | ||||
Class I | $1,000.00 | $1,021.01 | $4.10 | 0.81% |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 183/365 (to reflect one half-year period).
59
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED)
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Information Regarding the Approval of Investment Advisory Agreement
In September, 2010, after evaluating the services provided by RBC Global Asset Management (U.S.), Inc. (formerly named Voyageur Asset Management Inc.) (the “Advisor”) and reviewing the performance, fees and expenses of the Fund, the RBC Funds Board of Trustees determined to approve the continuation of the investment advisory agreement (“Agreement”) with the Advisor for the Fund for an additional year.
As part of their review of the Agreement, the Trustees requested and considered information regarding the advisory services performed by the Advisor, the staffing and qualifications of the personnel responsible for operating and managing the Fund, and the Fund’s performance and expenses. The review process was guided by the Board’s Valuation, Portfolio Management and Performance Committee. The Trustees considered information provided at regular quarterly Board and Committee meetings throughout the year, as well as a special meeting to review requested material related to the proposed renewals and a meeting held to specifically consider the proposed renewals. In connection with their deliberations, the independent Trustees were advised by their own independent legal counsel with regard to the materials and their responsibilities under relevant laws and regulations.
The Trustees met with representatives from the Advisor’s senior management team, as well as the senior investment professionals responsible for managing the Fund, to discuss the information and the Advisor’s ongoing management of the Fund. The Trustees reviewed the nature and quality of the services provided to the Fund by the Advisor, including information prepared by an independent third-party consultant as to the Fund’s performance relative to appropriate securities index benchmarks as well as fund peer group comparative information requested by the Board. The Trustees also requested information regarding other funds that focus particularly on investments eligible for regulatory credit under the Community Reinvestment Act of 1977. The Trustees reviewed performance data both before and after fees and expenses. The Trustees reviewed the investment advisory fees payable to the Advisor, and reviewed comparative fee and expense information for similarly situated funds prepared by the consultant. The Trustees also received reports from the Advisor regarding the performance and fee levels for other advisory client accounts it advised in a similar strategy. The Trustees evaluated profitability data for the Advisor, and considered information regarding other benefits the Advisor and its affiliates derived from its relationships with the Fund.
With regard to Fund performance, the Trustees recognized that the Fund’s total return was near the peer group median, and that the Fund’s investment operations were consistent with its stated mandate. The Fund’s advisory fees and overall expense levels were higher than its peers, but the Trustees recognized that the Fund’s use of leverage contributed to its higher relative expenses.
In considering the quality of services to be provided by the Advisor, the Trustees discussed the Advisor’s specialized expertise in the area of fixed income investments eligible for regulatory credit under the Community Reinvestment Act of 1977 and the continued focus on the Fund’s related core mandate by the Advisor’s leadership team. The Trustees also considered the Advisor’s research, credit and fundamental analysis capabilities, and the portfolio management experience of the Advisor’s staff, as well as its operational and compliance structure and systems and financial strength. The Trustees also considered steps that had been taken by the Advisor to expand upon existing research capabilities and compliance processes and its implementation of strategic initiatives geared toward the success of the Fund.
60
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED)
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Based upon their review, the Trustees determined that the advisory fees proposed to be payable to the Advisor were fair and reasonable in light of the nature and quality of services provided under all of the circumstances, and were within the range of what might have been negotiated at arms’ length. The Trustees concluded that it is in the interest of the Fund and its shareholders for the Trustees to approve the continuation of the Agreement for the Fund. In arriving at their decision to approve the renewal of the Agreement, the Trustees did not assign relative weights to the factors discussed above or deem any one or group of them to be controlling in and of itself.
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Access Capital
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 Fund. 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 the Fund’s portfolio. The views expressed in this report reflect those of the portfolio managers through the period ended September 30, 2010.
NOT FDIC INSURED l NO BANK GUARANTEE l MAY LOSE VALUE
RBC Global Asset Management U.S., Inc. serves as investment adviser to the Access Capital Community Investment Fund. The Fund is 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-AC AR09-10 |
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. |
(b) | 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. |
(c) | 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 William B. Taylor is qualified to serve as an audit committee financial expert serving on its audit committee and that he is “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 $283,350 for 2010 and $305,300 for 2009. |
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 2010 and $75,000 for 2009. |
Audit-related fees for 2009 relate to the mid-year review of the semi-annual report.
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 $38,330 for 2010 and $49,500 for 2009. |
Tax fees for both years relate to the review of the registrant’s tax returns. Amount requiring approval of the registrant’s audit committee is $0 and $0, respectively.
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 2010 and $0 for 2009. |
(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) | 100% |
(c) | 100% |
(d) | N/A |
(f) | Not applicable. |
(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 $0 for 2010 and $0 for 2009. |
(h) | Not applicable. |
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 registrant’s second fiscal quarter of 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. | Exhibits. |
(a)(1) | Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto. | |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. | |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto. |
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/ ERIK R. PREUS | |
Erik R. Preus, President and Chief Executive Officer | ||
(principal executive officer) |
Date 11/23/10
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/ ERIK R. PREUS | |
Erik R. Preus, President and Chief Executive Officer | ||
(principal executive officer) |
Date 11/23/10
By (Signature and Title)* | /s/ KATHLEEN A. HEGNA | |
Kathleen A. Hegna, Chief Financial Officer | ||
(principal financial officer) |
Date 11/23/10
* | Print the name and title of each signing officer under his or her signature. |