UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21475
RBC Funds Trust
(Exact name of registrant as specified in charter)
50 South Sixth Street, Suite 2350
Minneapolis, MN 55402
(Address of principal executive offices) (Zip code)
Kathleen A. Gorman
50 South Sixth Street, Suite 2350
Minneapolis, MN 55402
(Name and address of agent for service)
Registrant’s telephone number, including area code: (612)-376-7128
Date of fiscal year end: September 30
Date of reporting period: March 31, 2018
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758dsp1.jpg)
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| | | | | | | | RBC Funds | | | | |
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About your Semi Annual Report | | | | | | | | This semi-annual report (Unaudited) includes detailed information about your Fund including financial statements, performance, and a complete list of its holdings. | | | | |
| | | | | | | | The RBC Funds compare their performance against various indices. Each of these indices is a widely recognized measure of return for the underlying category of securities. However, the indices are unmanaged, do not include fees, and cannot be invested in directly. | | | | |
| | | | | | | | We hope the financial information presented will help you evaluate your investment in the RBC Funds. We also encourage you to read your Fund’s prospectus for further detail as to your Fund’s investment policies and risk profile. RBC Funds prospectuses and performance information subsequent to the date of this report are available on our website at www.rbcgam.us. | | | | |
| | | | | | | | A description of the policies and procedures that your Fund uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1-800-422-2766; (ii) on the Fund’s website at www.rbcgam.us; and (iii) on the Securities and Exchange Commission’s (the “Commission”) website at http://www.sec.gov. | | | | |
| | | | | | | | 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 is 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 1-800-SEC-0330. | | | | |
Table of Contents | | | | | | | | Portfolio Managers | | | 1 | |
| | | | | | | Performance Summary | | | 2 | |
| | | | | | | | Fund Statistics | | | | |
| | | | | | | | - Access Capital Community Investment Fund | | | 4 | |
| | | | | | | | - RBC Impact Bond Fund | | | 5 | |
| | | | | | | | Schedule of Portfolio Investments | | | 6 | |
| | | | | | | | Financial Statements | | | | |
| | | | | | | | - Statements of Assets and Liabilities | | | 31 | |
| | | | | | | | - Statements of Operations | | | 33 | |
| | | | | | | | - Statements of Changes in Net Assets | | | 34 | |
| | | | | | | | Financial Highlights | | | 36 | |
| | | | | | | | Notes to Financial Statements | | | 40 | |
| | | | | | | | Share Class Information | | | 53 | |
| | | | | | | | Supplemental Information | | | 54 | |
| | | | | | | | Approval of Investment Advisory Agreement | | | 56 | |
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PORTFOLIO MANAGERS | | | | | | | | |
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RBC Global Asset Management (U.S.) Inc.(“RBC GAM (US)”) serves as the investment advisor to the Funds. RBC GAM (US) employs a team approach to the management of the Funds, with no individual team member being solely responsible for the investment decisions. The Funds’ management team has access to RBC GAM (US)’s investment research and other money management resources. | | | | | | | | |
Brian Svendahl, CFA Managing Director, Co-Head, U.S. Fixed Income Brian Svendahl oversees the fixed income research, portfolio management and trading at RBC GAM (US). In addition to shaping the firm’s overall fixed income philosophy and process, he is a portfolio manager for the Funds and many of RBC GAM (US)’s government mandates. Brian joined RBC GAM (US) in 2005 and most recently led the mortgage and government team before being promoted to Co-Head. Prior to joining RBC GAM (US), he held several risk management, research and trading positions at Wells Fargo. Brian’s experience also includes liability management and implementing balance sheet hedging strategies. He earned a BS in economics from the University of Minnesota and a BBA in finance and an MBA from the University of Minnesota Carlson School of Management. Brian is a CFA charterholder. | | | | | | ![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758dsp3.jpg)
Brian Svendahl, CFA | | |
Scott Kirby Vice President, Senior Portfolio Manager Scott Kirby is a member of the government and mortgage research team in RBC GAM (US)’s fixed income group and serves as co-portfolio manager for the firm’s community investment strategy, including the Access Capital Community Investment Fund. Scott joined RBC GAM (US) in 2012 and most recently served as manager of investments of a broad-based asset portfolio for a large foundation, supporting its mission to reduce poverty. Previously he led the structured assets investment team of Ameriprise Financial/Riversource Investments, where he served as senior portfolio manager for more than $20 billion in agency and non-agency mortgage-backed, commercial mortgage-backed and asset-backed securities. He earned a BS in finance and an MBA in finance from the University of Minnesota Carlson School of Management. | | | | | | ![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758dsp3_2.jpg)
Scott Kirby | | |
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1
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| | 1 Year | | 3 Year | | 5 Year | | 10 Year | | Since Inception | | Net Expense Ratio(a) | | Gross Expense Ratio(b) |
Average Annual Total Returns as of March 31, 2018 (Unaudited) | |
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Access Capital Community Investment Fund | |
Class A(d) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- Including Max Sales Charge of 3.75% | | | | (4.08 | )% | | | | (0.97 | )% | | | | 0.20 | % | | | | 2.40 | % | | | | 3.60 | % | | | | | | | | | | |
- At Net Asset Value | | | | (0.35 | )% | | | | 0.32 | % | | | | 0.96 | % | | | | 2.79 | % | | | | 3.80 | % | | | | 0.99 | % | | | | 1.09 | % |
Class I(e) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- At Net Asset Value | | | | 0.01 | % | | | | 0.72 | % | | | | 1.34 | % | | | | 3.08 | % | | | | 4.11 | % | | | | 0.63 | % | | | | 0.64 | % |
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Bloomberg Barclays U.S. Securitized Index(g) | | | | 0.79 | % | | | | 1.14 | % | | | | 1.80 | % | | | | 3.51 | % | | | | 4.69 | % | | | | | | | | | | |
Bloomberg Barclays U.S. Aggregate Bond Index(g) | | | | 1.20 | % | | | | 1.20 | % | | | | 1.82 | % | | | | 3.63 | % | | | | 4.77 | % | | | | | | | | | | |
RBC Impact Bond Fund(c) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- At Net Asset Value | | | | N/A | | | | | N/A | | | | | N/A | | | | | N/A | | | | | (1.79 | )% | | | | 0.45 | %(f) | | | | 4.46 | %(f) |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- At Net Asset Value | | | | N/A | | | | | N/A | | | | | N/A | | | | | N/A | | | | | (1.78 | )% | | | | 0.40 | %(f) | | | | 4.32 | %(f) |
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Bloomberg Barclays U.S. Aggregate Bond Index(g) | | | | N/A | | | | | N/A | | | | | N/A | | | | | N/A | | | | | (1.39 | )% | | | | | | | | | | |
Performance data quoted represents past performance. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Performance shown reflects contractual fee waivers, without such fee waivers total returns would be reduced.For performance data current to the most recent month-end go to www.rbcgam.us. Please see footnotes below.
(a) | The Fund’s expenses reflect the most recent year end (September 30, 2017) for the Access Capital Community Investment Fund and the period from December 18, 2017 (commencement of operations) to March 31, 2018 for the RBC Impact Bond Fund. |
(b) | The advisor has contractually agreed to waive fees and/or pay operating expenses to keep total operating expenses (excluding certain fees such as brokerage costs, interest, taxes and acquired fund fees and expenses) at 0.95% for Class A shares and 0.70% for Class I shares of the Access Capital Investment Fund and at 0.45% for Class I shares and 0.40% for Class R6 shares of the Impact Bond Fund until January 31, 2019. |
(c) | The inception date for the RBC Impact Bond Fund is December 18, 2017. |
(d) | 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. |
(e) | 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. |
2
(g) | Each of the comparative indices is a widely recognized market value weighted measure of the return of securities, but do not include sales fees or operating expenses. You cannot invest directly in indices. |
The Bloomberg Barclays US Aggregate Bond Index measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. It includes Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities (agency and non-agency).
The Bloomberg Barclays US Securitized Index represents the securitized portion (mortgage-backed, asset-backed and commercial mortgage-backed securities) of the Bloomberg Barclays US Aggregate Bond Index. You cannot invest directly in an index.
3
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| | | | | | FUND STATISTICS (UNAUDITED) | | |
| | | | | | Access Capital Community Investment Fund |
Investment Objective | | | | | | Seeks to invest in geographically specific debt securities located in portions of the United States designated by Fund shareholders. |
Benchmark | | | | | | Bloomberg Barclays U.S. Securitized Index Bloomberg Barclays U.S. Aggregate Bond Index |
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Asset Allocation as of 3/31/18 (% of Fund’s investments) | | | | | | ![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758dsp6.jpg)
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Top Ten Holdings (excluding investment companies) (as of 3/31/18) (% of Fund’s net assets) | | | | | | Fannie Mae, Pool #AK2386, 3.50%, 2/1/42 Ginnie Mae, Series 2012-58, Class B, 2.20%, 3/1/44 Ginnie Mae, Series 2012-33, Class B, 2.89%, 3/1/46 Fannie Mae, Pool #CA1152, 3.50%, 2/1/48 Freddie Mac, Pool #V83890, 3.50%, 2/1/48 Ginnie Mae, Pool #AC9541, 2.12%, 2/1/48 | | 1.44%
1.22% 0.94% 0.86% 0.82% 0.81% | | Fannie Mae, Pool #AM4392, 3.79%, 10/1/23 Ginnie Mae, Series 2012-114, Class A, 2.10%, 1/1/53 Missouri Housing Development Commission, Revenue, Series 1, 3.75%, 3/1/42 Fannie Mae, Pool #AS7675, 3.00%, 8/1/46 | | 0.81%
0.77% 0.68% 0.67% |
| | | | | | *A listing of all portfolio holdings can be found beginning on page 6 |
Growth of $1,000,000 Initial Investment Over 10 Years | | | | | | ![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758dsp6_1.jpg)
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| | | | | | The graph reflects an initial investment of $ 1,000,000 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 does not. The graph does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance of other classes will vary due to differences in fee structures. |
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4
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FUND STATISTICS (UNAUDITED) | | | | | | | | | | | | | | | | |
RBC Impact Bond Fund | | | | | | | | |
Seeks to achieve a high level of current income consistent with preservation of capital. | | | | | | | | Investment Objective |
Bloomberg Barclays U.S. Aggregate Bond Index | | | | | | | | Benchmark |
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758dsp7.jpg)
| | | | | | | | Asset Allocation as of 3/31/18 (% of Fund’s investments) |
U.S. Treasury Notes, 1.38%, 1/31/21 U.S. Treasury Notes, 1.63%, 12/31/19 Fannie Mae, (TBA), 3.50%, 4/1/48 Fannie Mae, (TBA), 3.00%, 4/1/48 Fannie Mae, (TBA), 4.00%, 4/1/48 | | | 11.58% 9.82% 7.76% 7.75% 6.72% | | | U.S. Treasury Notes, 1.13%, 1/31/19 U.S. Treasury Notes, 1.88%, 1/31/22 U.S. Treasury Notes, 1.75%, 1/31/23 U.S. Treasury Bonds, 2.75%, 11/15/47 Fannie Mae, (TBA), 4.50%, 4/1/48 | | 5.91% 4.85% 3.83% 2.94% 2.91% | | | | | | | | Top Ten Holdings (excluding investment companies) (as of 3/31/18) (% of Fund’s net assets) |
*A listing of all portfolio holdings can be found beginning on page 28 | | | | | | | | | | |
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758dsp7_1.jpg)
| | | | | | | | Growth of $1,000,000 Initial Investment Since Inception (12/18/17) |
The graph reflects an initial investment of $1,000,000 over the period from December 18, 2017 (commencement of operations) to March 31, 2018 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. | | | | | | | | |
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5
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SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund
March 31, 2018 (Unaudited)
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Principal Amount | | | | Value | |
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U.S. Government Agency Backed Mortgages — 94.33% | | | | |
Fannie Mae — 57.22% | | | | |
$ 164,870 | | Pool #257613, 5.50%, 6/1/38 | | $ | 180,681 | |
65,832 | | Pool #257656, 6.00%, 8/1/38 | | | 73,135 | |
122,845 | | Pool #257663, 5.50%, 8/1/38 | | | 136,526 | |
108,989 | | Pool #257890, 5.50%, 2/1/38 | | | 121,126 | |
115,373 | | Pool #257892, 5.50%, 2/1/38 | | | 129,213 | |
76,656 | | Pool #257913, 5.50%, 1/1/38 | | | 84,690 | |
65,820 | | Pool #257926, 5.50%, 3/1/38 | | | 74,076 | |
60,160 | | Pool #258022, 5.50%, 5/1/34 | | | 67,027 | |
131,667 | | Pool #258070, 5.00%, 6/1/34 | | | 142,248 | |
39,803 | | Pool #258121, 5.50%, 6/1/34 | | | 44,272 | |
126,341 | | Pool #258152, 5.50%, 8/1/34 | | | 138,714 | |
69,543 | | Pool #258157, 5.00%, 8/1/34 | | | 74,926 | |
64,351 | | Pool #258163, 5.50%, 8/1/34 | | | 71,040 | |
112,592 | | Pool #258166, 5.50%, 9/1/34 | | | 123,495 | |
86,465 | | Pool #258224, 5.50%, 12/1/34 | | | 93,946 | |
59,808 | | Pool #258238, 5.00%, 1/1/35 | | | 64,578 | |
90,810 | | Pool #258251, 5.50%, 1/1/35 | | | 100,132 | |
109,009 | | Pool #258305, 5.00%, 3/1/35 | | | 117,693 | |
90,884 | | Pool #258336, 5.00%, 4/1/35 | | | 98,731 | |
60,278 | | Pool #258340, 5.00%, 3/1/35 | | | 65,445 | |
15,146 | | Pool #258393, 5.00%, 5/1/35 | | | 16,175 | |
63,518 | | Pool #258394, 5.00%, 5/1/35 | | | 69,091 | |
178,003 | | Pool #258395, 5.50%, 6/1/35 | | | 195,219 | |
60,576 | | Pool #258403, 5.00%, 6/1/35 | | | 65,885 | |
81,420 | | Pool #258404, 5.00%, 6/1/35 | | | 88,230 | |
47,555 | | Pool #258410, 5.00%, 4/1/35 | | | 51,718 | |
102,788 | | Pool #258448, 5.00%, 8/1/35 | | | 110,174 | |
185,530 | | Pool #258450, 5.50%, 8/1/35 | | | 203,268 | |
90,790 | | Pool #258456, 5.00%, 8/1/35 | | | 98,063 | |
78,788 | | Pool #258571, 5.50%, 11/1/35 | | | 86,390 | |
88,834 | | Pool #258600, 6.00%, 1/1/36 | | | 99,860 | |
220,422 | | Pool #258627, 5.50%, 2/1/36 | | | 239,880 | |
102,537 | | Pool #258634, 5.50%, 2/1/36 | | | 112,792 | |
55,085 | | Pool #258658, 5.50%, 3/1/36 | | | 61,375 | |
51,009 | | Pool #258737, 5.50%, 12/1/35 | | | 56,358 | |
42,124 | | Pool #259004, 8.00%, 2/1/30 | | | 49,572 | |
44,160 | | Pool #259030, 8.00%, 4/1/30 | | | 50,860 | |
44,195 | | Pool #259181, 6.50%, 3/1/31 | | | 49,736 | |
11,385 | | Pool #259187, 6.50%, 4/1/31 | | | 12,215 | |
70,788 | | Pool #259190, 6.50%, 4/1/31 | | | 80,006 | |
80,758 | | Pool #259316, 6.50%, 11/1/31 | | | 91,058 | |
30,266 | | Pool #259378, 6.00%, 12/1/31 | | | 34,032 | |
34,090 | | Pool #259393, 6.00%, 1/1/32 | | | 38,449 | |
42,953 | | Pool #259590, 5.50%, 11/1/32 | | | 47,740 | |
173,398 | | Pool #259611, 5.50%, 11/1/32 | | | 190,163 | |
44,733 | | Pool #259634, 5.50%, 12/1/32 | | | 48,604 | |
6
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SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
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Principal Amount | | | | Value | |
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$ 138,677 | | Pool #259659, 5.50%, 2/1/33 | | $ | 152,670 | |
33,130 | | Pool #259671, 5.50%, 2/1/33 | | | 36,839 | |
80,559 | | Pool #259686, 5.50%, 3/1/33 | | | 88,647 | |
37,726 | | Pool #259722, 5.00%, 5/1/33 | | | 40,724 | |
49,475 | | Pool #259724, 5.00%, 5/1/33 | | | 53,582 | |
117,772 | | Pool #259725, 5.00%, 5/1/33 | | | 126,696 | |
107,089 | | Pool #259729, 5.00%, 6/1/33 | | | 115,586 | |
62,043 | | Pool #259761, 5.00%, 6/1/33 | | | 66,947 | |
102,899 | | Pool #259764, 5.00%, 7/1/33 | | | 111,049 | |
113,233 | | Pool #259777, 5.00%, 7/1/33 | | | 121,872 | |
82,897 | | Pool #259781, 5.00%, 7/1/33 | | | 89,486 | |
50,220 | | Pool #259789, 5.00%, 7/1/33 | | | 54,393 | |
91,961 | | Pool #259807, 5.00%, 8/1/33 | | | 99,236 | |
124,212 | | Pool #259816, 5.00%, 8/1/33 | | | 133,728 | |
27,827 | | Pool #259819, 5.00%, 8/1/33 | | | 30,137 | |
51,416 | | Pool #259830, 5.00%, 8/1/33 | | | 55,518 | |
34,040 | | Pool #259848, 5.00%, 9/1/33 | | | 36,868 | |
72,268 | | Pool #259867, 5.50%, 10/1/33 | | | 79,738 | |
61,165 | | Pool #259869, 5.50%, 10/1/33 | | | 66,953 | |
106,650 | | Pool #259875, 5.50%, 10/1/33 | | | 116,916 | |
69,720 | | Pool #259876, 5.50%, 10/1/33 | | | 76,900 | |
14,161 | | Pool #259879, 5.50%, 10/1/33 | | | 15,387 | |
98,455 | | Pool #259930, 5.00%, 11/1/33 | | | 105,303 | |
38,206 | | Pool #259998, 5.00%, 3/1/34 | | | 41,389 | |
668,246 | | Pool #465946, 3.61%, 9/1/20 | | | 680,086 | |
1,786,806 | | Pool #468226, 3.86%, 6/1/21 | | | 1,838,418 | |
272,256 | | Pool #469101, 3.75%, 2/1/27 | | | 281,050 | |
770,731 | | Pool #469239, 2.69%, 10/1/18 | | | 768,707 | |
429,088 | | Pool #470439, 2.91%, 5/1/22 | | | 428,779 | |
3,030,666 | | Pool #470561, 2.94%, 2/1/22 | | | 3,035,928 | |
901,925 | | Pool #470828, 3.53%, 3/1/32 | | | 909,173 | |
895,711 | | Pool #471478, 2.61%, 8/1/22 | | | 884,860 | |
3,299,384 | | Pool #471948, 2.86%, 7/1/22 | | | 3,289,140 | |
170,413 | | Pool #557295, 7.00%, 12/1/29 | | | 191,966 | |
30,632 | | Pool #576445, 6.00%, 1/1/31 | | | 33,385 | |
72,395 | | Pool #579402, 6.50%, 4/1/31 | | | 81,774 | |
133,567 | | Pool #583728, 6.50%, 6/1/31 | | | 150,520 | |
65,198 | | Pool #585148, 6.50%, 7/1/31 | | | 73,425 | |
34,402 | | Pool #590931, 6.50%, 7/1/31 | | | 38,705 | |
54,107 | | Pool #590932, 6.50%, 7/1/31 | | | 60,308 | |
38,615 | | Pool #601865, 6.50%, 4/1/31 | | | 41,797 | |
35,386 | | Pool #601868, 6.00%, 7/1/29 | | | 39,225 | |
50,131 | | Pool #607611, 6.50%, 11/1/31 | | | 56,611 | |
98,473 | | Pool #634271, 6.50%, 5/1/32 | | | 111,249 | |
42,523 | | Pool #644232, 6.50%, 6/1/32 | | | 48,146 | |
25,652 | | Pool #644432, 6.50%, 7/1/32 | | | 28,899 | |
41,851 | | Pool #644437, 6.50%, 6/1/32 | | | 47,325 | |
1,907,606 | | Pool #663159, 5.00%, 7/1/32(a) | | | 2,049,281 | |
7
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$ 78,463 | | Pool #670278, 5.50%, 11/1/32 | | $ | 87,060 | |
37,552 | | Pool #676702, 5.50%, 11/1/32 | | | 41,249 | |
51,898 | | Pool #677591, 5.50%, 12/1/32 | | | 57,127 | |
171,045 | | Pool #681883, 6.00%, 3/1/33 | | | 190,848 | |
120,234 | | Pool #686542, 5.50%, 3/1/33 | | | 130,637 | |
226,956 | | Pool #695961, 5.50%, 1/1/33 | | | 248,703 | |
192,424 | | Pool #696407, 5.50%, 4/1/33 | | | 212,165 | |
423,476 | | Pool #702478, 5.50%, 6/1/33 | | | 463,891 | |
123,202 | | Pool #702479, 5.00%, 6/1/33 | | | 132,652 | |
65,353 | | Pool #703210, 5.50%, 9/1/32 | | | 71,007 | |
150,718 | | Pool #720025, 5.00%, 8/1/33 | | | 162,427 | |
249,334 | | Pool #723066, 5.00%, 4/1/33 | | | 268,593 | |
243,828 | | Pool #723067, 5.50%, 5/1/33 | | | 265,919 | |
273,139 | | Pool #723070, 4.50%, 5/1/33 | | | 288,400 | |
290,155 | | Pool #727311, 4.50%, 9/1/33 | | | 306,349 | |
187,994 | | Pool #727312, 5.00%, 9/1/33 | | | 202,904 | |
153,240 | | Pool #727315, 6.00%, 10/1/33 | | | 172,470 | |
39,422 | | Pool #738589, 5.00%, 9/1/33 | | | 42,702 | |
49,863 | | Pool #739269, 5.00%, 9/1/33 | | | 53,996 | |
163,471 | | Pool #743595, 5.50%, 10/1/33 | | | 179,120 | |
158,373 | | Pool #748041, 4.50%, 10/1/33 | | | 166,737 | |
179,186 | | Pool #749891, 5.00%, 9/1/33 | | | 193,423 | |
108,843 | | Pool #749897, 4.50%, 9/1/33 | | | 114,955 | |
10,083 | | Pool #750984, 5.00%, 12/1/18 | | | 10,168 | |
9,108 | | Pool #751008, 5.00%, 12/1/18 | | | 9,176 | |
227,948 | | Pool #753533, 5.00%, 11/1/33 | | | 244,610 | |
86,802 | | Pool #755679, 6.00%, 1/1/34 | | | 97,939 | |
56,322 | | Pool #755746, 5.50%, 12/1/33 | | | 62,683 | |
41,216 | | Pool #763551, 5.50%, 3/1/34 | | | 45,900 | |
93,509 | | Pool #763820, 5.50%, 1/1/34 | | | 102,797 | |
20,390 | | Pool #765216, 5.00%, 1/1/19 | | | 20,582 | |
3,764 | | Pool #773096, 4.50%, 3/1/19 | | | 3,799 | |
27,456 | | Pool #773476, 5.50%, 7/1/19 | | | 27,937 | |
46,004 | | Pool #776851, 6.00%, 10/1/34 | | | 52,071 | |
717,057 | | Pool #777621, 5.00%, 2/1/34 | | | 774,046 | |
127,503 | | Pool #781437, 6.00%, 8/1/34 | | | 142,196 | |
83,320 | | Pool #781741, 6.00%, 9/1/34 | | | 93,633 | |
15,428 | | Pool #781907, 5.00%, 2/1/21 | | | 15,865 | |
139,722 | | Pool #781954, 5.00%, 6/1/34 | | | 150,976 | |
165,541 | | Pool #781959, 5.50%, 6/1/34 | | | 179,864 | |
263,691 | | Pool #783893, 5.50%, 12/1/34 | | | 289,507 | |
74,548 | | Pool #783929, 5.50%, 10/1/34 | | | 82,286 | |
16,637 | | Pool #788329, 6.50%, 8/1/34 | | | 17,966 | |
121,712 | | Pool #797627, 5.00%, 7/1/35 | | | 131,447 | |
113,009 | | Pool #798725, 5.50%, 11/1/34 | | | 125,464 | |
98,619 | | Pool #799548, 6.00%, 9/1/34 | | | 110,295 | |
943,129 | | Pool #806754, 4.50%, 9/1/34 | | | 996,354 | |
330,059 | | Pool #806757, 6.00%, 9/1/34 | | | 369,631 | |
8
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$ 751,050 | | Pool #806761, 5.50%, 9/1/34 | | $ | 822,791 | |
115,779 | | Pool #808205, 5.00%, 1/1/35 | | | 124,989 | |
198,762 | | Pool #815009, 5.00%, 4/1/35 | | | 214,597 | |
99,064 | | Pool #817641, 5.00%, 11/1/35 | | | 107,329 | |
121,607 | | Pool #820334, 5.00%, 9/1/35 | | | 131,386 | |
313,136 | | Pool #820335, 5.00%, 9/1/35 | | | 336,968 | |
180,656 | | Pool #820336, 5.00%, 9/1/35 | | | 195,921 | |
394,640 | | Pool #822008, 5.00%, 5/1/35 | | | 426,212 | |
174,439 | | Pool #829005, 5.00%, 8/1/35 | | | 188,477 | |
39,196 | | Pool #829006, 5.50%, 9/1/35 | | | 43,489 | |
166,806 | | Pool #829275, 5.00%, 8/1/35 | | | 180,167 | |
158,737 | | Pool #829276, 5.00%, 8/1/35 | | | 171,452 | |
114,982 | | Pool #829277, 5.00%, 8/1/35 | | | 123,913 | |
436,133 | | Pool #829649, 5.50%, 3/1/35 | | | 477,500 | |
298,392 | | Pool #844361, 5.50%, 11/1/35 | | | 326,829 | |
152,440 | | Pool #845245, 5.50%, 11/1/35 | | | 169,296 | |
59,130 | | Pool #866969, 6.00%, 2/1/36 | | | 66,963 | |
158,773 | | Pool #867569, 6.00%, 2/1/36 | | | 177,670 | |
119,473 | | Pool #870599, 6.00%, 6/1/36 | | | 134,122 | |
188,300 | | Pool #871072, 5.50%, 2/1/37 | | | 206,358 | |
176,378 | | Pool #884693, 5.50%, 4/1/36 | | | 194,535 | |
465,549 | | Pool #885724, 5.50%, 6/1/36 | | | 508,346 | |
229,435 | | Pool #911730, 5.50%, 12/1/21 | | | 238,241 | |
75,118 | | Pool #919368, 5.50%, 4/1/37 | | | 83,319 | |
287,670 | | Pool #922582, 6.00%, 12/1/36 | | | 321,120 | |
339,109 | | Pool #934941, 5.00%, 8/1/39 | | | 366,437 | |
301,605 | | Pool #934942, 5.00%, 9/1/39 | | | 325,910 | |
167,761 | | Pool #941204, 5.50%, 6/1/37 | | | 184,557 | |
61,598 | | Pool #943394, 5.50%, 6/1/37 | | | 68,901 | |
100,163 | | Pool #944502, 6.00%, 6/1/37 | | | 110,846 | |
344,531 | | Pool #948600, 6.00%, 8/1/37 | | | 385,160 | |
100,352 | | Pool #952598, 6.00%, 7/1/37 | | | 112,643 | |
125,229 | | Pool #952623, 6.00%, 8/1/37 | | | 140,414 | |
164,133 | | Pool #952678, 6.50%, 8/1/37 | | | 184,769 | |
95,302 | | Pool #952693, 6.50%, 8/1/37 | | | 106,597 | |
346,414 | | Pool #958502, 5.07%, 5/1/19 | | | 351,670 | |
104,031 | | Pool #975769, 5.50%, 3/1/38 | | | 114,738 | |
77,849 | | Pool #982898, 5.00%, 5/1/38 | | | 84,512 | |
143,174 | | Pool #984842, 5.50%, 6/1/38 | | | 156,904 | |
117,643 | | Pool #986239, 6.00%, 7/1/38 | | | 130,694 | |
127,602 | | Pool #986957, 5.50%, 7/1/38 | | | 139,839 | |
72,869 | | Pool #990510, 5.50%, 8/1/38 | | | 81,326 | |
280,962 | | Pool #990511, 6.00%, 8/1/38 | | | 313,175 | |
168,883 | | Pool #990617, 5.50%, 9/1/38 | | | 186,978 | |
134,783 | | Pool #AA0526, 5.00%, 12/1/38 | | | 145,665 | |
128,969 | | Pool #AA0644, 4.50%, 3/1/39 | | | 136,466 | |
300,342 | | Pool #AA0645, 4.50%, 3/1/39 | | | 317,800 | |
146,754 | | Pool #AA2243, 4.50%, 5/1/39 | | | 155,765 | |
9
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$ 404,440 | | Pool #AA3142, 4.50%, 3/1/39 | | $ | 429,907 | |
93,672 | | Pool #AA3143, 4.00%, 3/1/39 | | | 97,221 | |
490,952 | | Pool #AA3206, 4.00%, 4/1/39 | | | 508,557 | |
494,850 | | Pool #AA3207, 4.50%, 3/1/39 | | | 523,613 | |
140,319 | | Pool #AA4468, 4.00%, 4/1/39 | | | 145,351 | |
241,380 | | Pool #AA7042, 4.50%, 6/1/39 | | | 256,805 | |
391,631 | | Pool #AA7658, 4.00%, 6/1/39 | | | 405,675 | |
113,024 | | Pool #AA7659, 4.50%, 6/1/39 | | | 119,523 | |
135,610 | | Pool #AA7741, 4.50%, 6/1/24 | | | 140,920 | |
3,128,050 | | Pool #AB7798, 3.00%, 1/1/43 | | | 3,077,463 | |
1,554,724 | | Pool #AB9204, 3.00%, 4/1/43 | | | 1,529,581 | |
1,013,660 | | Pool #AB9831, 3.00%, 6/1/43 | | | 997,426 | |
461,711 | | Pool #AC1463, 5.00%, 8/1/39 | | | 498,918 | |
108,323 | | Pool #AC1464, 5.00%, 8/1/39 | | | 118,271 | |
935,780 | | Pool #AC2109, 4.50%, 7/1/39 | | | 989,587 | |
49,757 | | Pool #AC4394, 5.00%, 9/1/39 | | | 54,233 | |
544,300 | | Pool #AC4395, 5.00%, 9/1/39 | | | 589,183 | |
123,643 | | Pool #AC5328, 5.00%, 10/1/39 | | | 133,606 | |
244,765 | | Pool #AC5329, 5.00%, 10/1/39 | | | 264,490 | |
295,649 | | Pool #AC6304, 5.00%, 11/1/39 | | | 319,567 | |
219,568 | | Pool #AC6305, 5.00%, 11/1/39 | | | 237,330 | |
146,529 | | Pool #AC6307, 5.00%, 12/1/39 | | | 158,315 | |
320,301 | | Pool #AC6790, 5.00%, 12/1/39 | | | 346,213 | |
1,371,862 | | Pool #AC7199, 5.00%, 12/1/39(a) | | | 1,482,200 | |
537,429 | | Pool #AD1470, 5.00%, 2/1/40 | | | 588,548 | |
1,306,233 | | Pool #AD1471, 4.50%, 2/1/40 | | | 1,397,669 | |
278,867 | | Pool #AD1560, 5.00%, 3/1/40 | | | 301,296 | |
1,001,111 | | Pool #AD1585, 4.50%, 2/1/40 | | | 1,071,189 | |
368,805 | | Pool #AD1586, 5.00%, 1/1/40 | | | 405,268 | |
624,204 | | Pool #AD1638, 4.50%, 2/1/40 | | | 659,706 | |
155,607 | | Pool #AD1640, 4.50%, 3/1/40 | | | 164,457 | |
1,555,358 | | Pool #AD1942, 4.50%, 1/1/40(a) | | | 1,664,719 | |
358,166 | | Pool #AD1943, 5.00%, 1/1/40 | | | 392,458 | |
1,113,499 | | Pool #AD1988, 4.50%, 2/1/40 | | | 1,191,444 | |
390,690 | | Pool #AD2896, 5.00%, 3/1/40 | | | 422,297 | |
498,650 | | Pool #AD4456, 4.50%, 4/1/40 | | | 526,855 | |
751,282 | | Pool #AD4458, 4.50%, 4/1/40 | | | 793,776 | |
498,840 | | Pool #AD4940, 4.50%, 6/1/40 | | | 527,835 | |
362,645 | | Pool #AD4946, 4.50%, 6/1/40 | | | 383,723 | |
358,854 | | Pool #AD5728, 5.00%, 4/1/40 | | | 387,885 | |
491,200 | | Pool #AD7239, 4.50%, 7/1/40 | | | 519,751 | |
181,451 | | Pool #AD7242, 4.50%, 7/1/40 | | | 193,302 | |
188,586 | | Pool #AD7256, 4.50%, 7/1/40 | | | 199,607 | |
547,177 | | Pool #AD7271, 4.50%, 7/1/40 | | | 578,127 | |
281,333 | | Pool #AD7272, 4.50%, 7/1/40 | | | 297,774 | |
286,941 | | Pool #AD8960, 5.00%, 6/1/40 | | | 310,244 | |
243,554 | | Pool #AD9613, 4.50%, 8/1/40 | | | 257,330 | |
1,080,755 | | Pool #AD9614, 4.50%, 8/1/40 | | | 1,141,885 | |
10
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$ 346,838 | | Pool #AE2011, 4.00%, 9/1/40 | | $ | 359,276 | |
1,881,940 | | Pool #AE2012, 4.00%, 9/1/40(a) | | | 1,949,426 | |
219,750 | | Pool #AE2023, 4.00%, 9/1/40 | | | 227,630 | |
713,535 | | Pool #AE5432, 4.00%, 10/1/40 | | | 739,121 | |
352,170 | | Pool #AE5435, 4.50%, 9/1/40 | | | 372,090 | |
359,678 | | Pool #AE5806, 4.50%, 9/1/40 | | | 380,584 | |
606,079 | | Pool #AE5861, 4.00%, 10/1/40 | | | 627,812 | |
537,426 | | Pool #AE5862, 4.00%, 10/1/40 | | | 556,866 | |
372,662 | | Pool #AE5863, 4.00%, 10/1/40 | | | 386,026 | |
304,047 | | Pool #AE6850, 4.00%, 10/1/40 | | | 314,950 | |
237,060 | | Pool #AE6851, 4.00%, 10/1/40 | | | 245,561 | |
164,381 | | Pool #AE7699, 4.00%, 11/1/40 | | | 171,457 | |
501,457 | | Pool #AE7703, 4.00%, 10/1/40 | | | 523,044 | |
1,034,945 | | Pool #AE7707, 4.00%, 11/1/40 | | | 1,072,058 | |
398,180 | | Pool #AH0300, 4.00%, 11/1/40 | | | 412,458 | |
651,560 | | Pool #AH0301, 3.50%, 11/1/40 | | | 657,770 | |
54,647 | | Pool #AH0302, 4.00%, 11/1/40 | | | 56,999 | |
464,446 | | Pool #AH0306, 4.00%, 12/1/40 | | | 481,101 | |
493,772 | | Pool #AH0508, 4.00%, 11/1/40 | | | 511,478 | |
942,846 | | Pool #AH0537, 4.00%, 12/1/40 | | | 976,656 | |
948,666 | | Pool #AH0914, 4.50%, 11/1/40 | | | 1,002,325 | |
659,490 | | Pool #AH0917, 4.00%, 12/1/40 | | | 683,139 | |
769,368 | | Pool #AH1077, 4.00%, 1/1/41 | | | 797,559 | |
828,094 | | Pool #AH2973, 4.00%, 12/1/40 | | | 857,789 | |
452,131 | | Pool #AH2980, 4.00%, 1/1/41 | | | 468,344 | |
1,033,196 | | Pool #AH5656, 4.00%, 1/1/41 | | | 1,070,246 | |
251,440 | | Pool #AH5657, 4.00%, 2/1/41 | | | 260,457 | |
521,069 | | Pool #AH5658, 4.00%, 2/1/41 | | | 539,754 | |
545,341 | | Pool #AH5662, 4.00%, 2/1/41 | | | 564,812 | |
737,289 | | Pool #AH5882, 4.00%, 2/1/26 | | | 761,770 | |
627,098 | | Pool #AH6764, 4.00%, 3/1/41 | | | 649,194 | |
1,713,199 | | Pool #AH6768, 4.00%, 3/1/41(a) | | | 1,773,563 | |
338,592 | | Pool #AH7277, 4.00%, 3/1/41 | | | 351,950 | |
1,046,906 | | Pool #AH7281, 4.00%, 3/1/41 | | | 1,084,774 | |
382,679 | | Pool #AH7526, 4.50%, 3/1/41 | | | 404,444 | |
781,325 | | Pool #AH7537, 4.00%, 3/1/41 | | | 808,854 | |
615,893 | | Pool #AH8878, 4.50%, 4/1/41 | | | 650,730 | |
462,131 | | Pool #AH8885, 4.50%, 4/1/41 | | | 488,271 | |
479,005 | | Pool #AH9050, 3.50%, 2/1/26 | | | 489,157 | |
559,825 | | Pool #AI0114, 4.00%, 3/1/41 | | | 580,075 | |
939,577 | | Pool #AI1846, 4.50%, 5/1/41 | | | 992,722 | |
620,792 | | Pool #AI1847, 4.50%, 5/1/41 | | | 656,099 | |
1,309,957 | | Pool #AI1848, 4.50%, 5/1/41 | | | 1,384,052 | |
863,298 | | Pool #AI1849, 4.50%, 5/1/41 | | | 923,459 | |
512,812 | | Pool #AJ0651, 4.00%, 8/1/41 | | | 530,880 | |
486,493 | | Pool #AJ7668, 4.00%, 11/1/41 | | | 503,634 | |
664,965 | | Pool #AJ9133, 4.00%, 1/1/42 | | | 687,771 | |
8,839,369 | | Pool #AK2386, 3.50%, 2/1/42(a) | | | 8,934,668 | |
11
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$ 3,174,652 | | Pool #AK6715, 3.50%, 3/1/42 | | $ | 3,208,879 | |
879,564 | | Pool #AK6716, 3.50%, 3/1/42 | | | 889,046 | |
690,524 | | Pool #AK6718, 3.50%, 2/1/42 | | | 697,968 | |
624,320 | | Pool #AM0414, 2.87%, 9/1/27 | | | 604,411 | |
451,233 | | Pool #AM0635, 2.55%, 10/1/22 | | | 444,640 | |
905,139 | | Pool #AM1750, 3.04%, 12/1/30 | | | 888,465 | |
4,818,987 | | Pool #AM4392, 3.79%, 10/1/23 | | | 4,995,419 | |
486,463 | | Pool #AM4590, 3.18%, 10/1/20 | | | 490,465 | |
2,293,977 | | Pool #AM5335, 3.69%, 2/1/24 | | | 2,368,164 | |
237,751 | | Pool #AM6907, 3.68%, 10/1/32 | | | 245,546 | |
1,501,403 | | Pool #AM7764, 3.05%, 1/1/27 | | | 1,483,597 | |
952,126 | | Pool #AM7938, 2.59%, 12/1/25 | | | 927,149 | |
289,341 | | Pool #AM9239, 3.03%, 6/1/25 | | | 287,411 | |
486,115 | | Pool #AM9780, 3.31%, 3/1/31 | | | 481,308 | |
350,000 | | Pool #AN0360, 3.95%, 12/1/45 | | | 365,217 | |
1,096,518 | | Pool #AN0915, 3.01%, 2/1/26 | | | 1,085,691 | |
322,342 | | Pool #AN1381, 2.56%, 8/1/26 | | | 309,897 | |
971,905 | | Pool #AN2066, 2.75%, 7/1/26 | | | 945,790 | |
1,000,000 | | Pool #AN2398, 2.52%, 7/1/28 | | | 938,086 | |
990,820 | | Pool #AN2746, 2.30%, 9/1/26 | | | 935,762 | |
1,000,000 | | Pool #AN3157, 2.25%, 10/1/26 | | | 938,030 | |
489,709 | | Pool #AN3919, 2.82%, 12/1/26 | | | 476,620 | |
1,964,796 | | Pool #AN4408, 3.35%, 1/1/27 | | | 1,975,996 | |
886,423 | | Pool #AN5053, 3.34%, 4/1/27 | | | 889,462 | |
320,000 | | Pool #AN5468, 3.22%, 5/1/27 | | | 317,680 | |
1,000,000 | | Pool #AN5848, 3.15%, 6/1/27 | | | 987,370 | |
215,344 | | Pool #AN6580, 3.36%, 9/1/29 | | | 214,860 | |
993,177 | | Pool #AN7154, 3.21%, 10/1/32 | | | 972,941 | |
1,960,000 | | Pool #AN7490, 3.15%, 11/1/27 | | | 1,931,885 | |
997,349 | | Pool #AN7904, 3.44%, 12/1/27 | | | 1,013,482 | |
498,680 | | Pool #AN7982, 2.80%, 1/1/26 | | | 488,251 | |
1,000,000 | | Pool #AN8458, 2.97%, 2/1/25 | | | 991,126 | |
941,828 | | Pool #AO2923, 3.50%, 5/1/42 | | | 951,393 | |
2,196,081 | | Pool #AO8029, 3.50%, 7/1/42(a) | | | 2,218,385 | |
692,177 | | Pool #AP7483, 3.50%, 9/1/42 | | | 699,207 | |
668,397 | | Pool #AQ6710, 2.50%, 10/1/27 | | | 662,836 | |
1,654,430 | | Pool #AQ7193, 3.50%, 7/1/43 | | | 1,669,682 | |
2,594,686 | | Pool #AR3088, 3.00%, 1/1/43 | | | 2,553,131 | |
582,458 | | Pool #AR6712, 3.00%, 1/1/43 | | | 573,766 | |
754,201 | | Pool #AR6928, 3.00%, 3/1/43 | | | 742,004 | |
331,995 | | Pool #AR6933, 3.00%, 3/1/43 | | | 326,626 | |
911,839 | | Pool #AS1916, 4.00%, 3/1/44 | | | 941,117 | |
609,174 | | Pool #AS1917, 4.00%, 3/1/44 | | | 630,543 | |
204,525 | | Pool #AS2129, 4.00%, 3/1/44 | | | 211,092 | |
1,005,258 | | Pool #AS2439, 4.00%, 5/1/44 | | | 1,040,521 | |
1,637,702 | | Pool #AS2784, 4.00%, 7/1/44 | | | 1,687,728 | |
1,495,497 | | Pool #AS3244, 4.00%, 9/1/44 | | | 1,541,180 | |
1,948,439 | | Pool #AS3494, 4.00%, 10/1/44(a) | | | 2,007,958 | |
12
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$ 1,407,789 | | Pool #AS3726, 4.00%, 11/1/44 | | $ | 1,450,792 | |
1,483,133 | | Pool #AS3728, 4.00%, 11/1/44(a) | | | 1,528,438 | |
988,435 | | Pool #AS3926, 3.50%, 12/1/44 | | | 994,767 | |
666,591 | | Pool #AS3929, 4.00%, 12/1/44 | | | 686,537 | |
731,175 | | Pool #AS3930, 4.00%, 11/1/44 | | | 753,053 | |
1,043,126 | | Pool #AS4070, 4.00%, 12/1/44 | | | 1,081,836 | |
795,968 | | Pool #AS4240, 3.50%, 1/1/45 | | | 801,067 | |
1,226,746 | | Pool #AS4388, 3.50%, 2/1/45 | | | 1,234,605 | |
728,765 | | Pool #AS4390, 3.50%, 2/1/45 | | | 733,434 | |
1,024,371 | | Pool #AS4732, 3.50%, 4/1/45 | | | 1,030,933 | |
1,824,909 | | Pool #AS4743, 3.50%, 4/1/45(a) | | | 1,836,600 | |
1,156,073 | | Pool #AS4905, 3.50%, 4/1/45 | | | 1,164,202 | |
1,002,387 | | Pool #AS4910, 3.50%, 5/1/45 | | | 1,008,182 | |
1,087,765 | | Pool #AS5118, 3.50%, 5/1/45 | | | 1,094,054 | |
1,244,350 | | Pool #AS5341, 3.50%, 7/1/45 | | | 1,251,544 | |
1,394,112 | | Pool #AS5576, 4.00%, 8/1/45 | | | 1,435,391 | |
798,757 | | Pool #AS5919, 3.50%, 9/1/45 | | | 803,125 | |
807,754 | | Pool #AS5922, 3.50%, 9/1/45 | | | 811,919 | |
1,312,155 | | Pool #AS6303, 4.00%, 11/1/45 | | | 1,350,802 | |
1,509,738 | | Pool #AS6469, 4.00%, 12/1/45(a) | | | 1,554,205 | |
522,441 | | Pool #AS6607, 4.00%, 1/1/46 | | | 537,829 | |
1,530,138 | | Pool #AS6778, 3.50%, 3/1/46(a) | | | 1,537,549 | |
1,159,939 | | Pool #AS6958, 3.50%, 4/1/46 | | | 1,165,557 | |
1,497,760 | | Pool #AS7138, 3.50%, 5/1/46(a) | | | 1,505,014 | |
798,963 | | Pool #AS7139, 3.50%, 5/1/46 | | | 802,833 | |
1,853,395 | | Pool #AS7334, 3.00%, 6/1/46 | | | 1,811,838 | |
1,621,109 | | Pool #AS7335, 3.00%, 5/1/46 | | | 1,584,760 | |
1,012,239 | | Pool #AS7336, 3.00%, 6/1/46 | | | 989,701 | |
3,470,878 | | Pool #AS7504, 3.00%, 7/1/46 | | | 3,393,054 | |
816,906 | | Pool #AS7512, 3.00%, 7/1/46 | | | 798,589 | |
995,835 | | Pool #AS7516, 3.00%, 7/1/46 | | | 973,506 | |
1,664,136 | | Pool #AS7517, 3.00%, 6/1/46 | | | 1,626,823 | |
877,537 | | Pool #AS7518, 3.00%, 7/1/46 | | | 857,861 | |
2,580,490 | | Pool #AS7674, 3.00%, 8/1/46 | | | 2,521,017 | |
4,240,522 | | Pool #AS7675, 3.00%, 8/1/46 | | | 4,142,791 | |
1,924,807 | | Pool #AS7676, 3.00%, 8/1/46 | | | 1,880,446 | |
1,264,933 | | Pool #AS8054, 3.00%, 10/1/46 | | | 1,235,780 | |
1,812,042 | | Pool #AS8076, 3.00%, 10/1/46 | | | 1,770,280 | |
1,056,096 | | Pool #AS8077, 3.00%, 10/1/46 | | | 1,031,756 | |
1,746,987 | | Pool #AS8289, 3.00%, 10/1/46 | | | 1,706,725 | |
2,851,512 | | Pool #AS8440, 3.00%, 11/1/46 | | | 2,785,794 | |
1,893,489 | | Pool #AS8441, 3.00%, 11/1/46 | | | 1,849,850 | |
2,480,788 | | Pool #AS8633, 3.50%, 1/1/47 | | | 2,490,478 | |
1,392,990 | | Pool #AS8776, 3.50%, 2/1/47 | | | 1,398,431 | |
1,991,439 | | Pool #AS8777, 3.50%, 2/1/47 | | | 1,999,218 | |
798,784 | | Pool #AS9308, 4.00%, 2/1/47 | | | 820,688 | |
1,922,952 | | Pool #AS9381, 4.00%, 4/1/47 | | | 1,975,232 | |
1,642,728 | | Pool #AS9549, 4.00%, 5/1/47 | | | 1,687,389 | |
13
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$ 2,946,666 | | Pool #AS9550, 4.00%, 5/1/47 | | $ | 3,026,779 | |
1,336,219 | | Pool #AS9727, 3.50%, 6/1/47 | | | 1,341,438 | |
895,852 | | Pool #AS9728, 3.50%, 6/1/47 | | | 899,352 | |
1,804,255 | | Pool #AS9729, 4.00%, 6/1/47 | | | 1,853,308 | |
1,271,605 | | Pool #AS9825, 4.00%, 6/1/47 | | | 1,305,382 | |
1,128,605 | | Pool #AT2688, 3.00%, 5/1/43 | | | 1,110,353 | |
507,128 | | Pool #AT2691, 3.00%, 5/1/43 | | | 499,720 | |
780,089 | | Pool #AT3963, 2.50%, 3/1/28 | | | 769,698 | |
570,139 | | Pool #AT7873, 2.50%, 6/1/28 | | | 562,544 | |
755,275 | | Pool #AU0971, 3.50%, 8/1/43 | | | 762,237 | |
1,012,987 | | Pool #AU2165, 3.50%, 7/1/43 | | | 1,022,325 | |
857,155 | | Pool #AU2188, 3.50%, 8/1/43 | | | 865,056 | |
797,112 | | Pool #AU3700, 3.50%, 8/1/43 | | | 804,461 | |
701,135 | | Pool #AU4653, 3.50%, 9/1/43 | | | 709,132 | |
440,406 | | Pool #AU6054, 4.00%, 9/1/43 | | | 454,685 | |
479,624 | | Pool #AU6718, 4.00%, 10/1/43 | | | 496,598 | |
990,237 | | Pool #AU7003, 4.00%, 11/1/43 | | | 1,025,592 | |
704,137 | | Pool #AU7005, 4.00%, 11/1/43 | | | 729,277 | |
1,052,944 | | Pool #AV0679, 4.00%, 12/1/43 | | | 1,090,537 | |
475,647 | | Pool #AV9282, 4.00%, 2/1/44 | | | 490,920 | |
1,101,153 | | Pool #AW0993, 4.00%, 5/1/44 | | | 1,140,467 | |
386,393 | | Pool #AW1565, 4.00%, 4/1/44 | | | 398,800 | |
211,329 | | Pool #AW3671, 4.00%, 4/1/44 | | | 218,742 | |
951,865 | | Pool #AW5046, 4.00%, 7/1/44 | | | 980,942 | |
883,691 | | Pool #AW5047, 4.00%, 7/1/44 | | | 910,685 | |
471,420 | | Pool #AW7040, 4.00%, 6/1/44 | | | 487,957 | |
747,067 | | Pool #AW8629, 3.50%, 5/1/44 | | | 753,020 | |
976,273 | | Pool #AX2884, 3.50%, 11/1/44 | | | 984,968 | |
1,757,708 | | Pool #AX4860, 3.50%, 12/1/44(a) | | | 1,768,968 | |
1,043,875 | | Pool #AY0075, 3.50%, 11/1/44 | | | 1,050,563 | |
1,475,267 | | Pool #AY1389, 3.50%, 4/1/45(a) | | | 1,484,718 | |
1,149,218 | | Pool #AY3435, 3.50%, 5/1/45 | | | 1,155,862 | |
1,226,594 | | Pool #AY5571, 3.50%, 6/1/45 | | | 1,233,685 | |
1,688,033 | | Pool #BC0802, 3.50%, 4/1/46(a) | | | 1,696,210 | |
1,435,151 | | Pool #BC0804, 3.50%, 4/1/46 | | | 1,442,102 | |
1,271,860 | | Pool #BC1135, 3.00%, 6/1/46 | | | 1,243,342 | |
2,661,490 | | Pool #BD3807, 3.00%, 7/1/46 | | | 2,600,151 | |
1,707,401 | | Pool #BD5021, 3.50%, 2/1/47 | | | 1,716,204 | |
2,135,129 | | Pool #BD7140, 4.00%, 4/1/47 | | | 2,193,178 | |
2,339,826 | | Pool #BE4232, 3.00%, 12/1/46 | | | 2,285,900 | |
1,455,914 | | Pool #BE9743, 3.50%, 4/1/47 | | | 1,461,601 | |
2,458,773 | | Pool #BH2665, 3.50%, 9/1/47 | | | 2,466,840 | |
1,430,940 | | Pool #BH4071, 3.50%, 10/1/47 | | | 1,434,965 | |
1,451,985 | | Pool #BH4659, 4.00%, 6/1/47 | | | 1,491,461 | |
1,213,312 | | Pool #BH6930, 3.50%, 9/1/47 | | | 1,216,724 | |
2,687,218 | | Pool #BJ0657, 4.00%, 2/1/48 | | | 2,759,227 | |
3,211,890 | | Pool #CA0114, 3.50%, 8/1/47 | | | 3,222,429 | |
1,036,241 | | Pool #CA0115, 3.50%, 8/1/47 | | | 1,039,641 | |
14
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$ 1,035,711 | | Pool #CA0268, 3.50%, 8/1/47 | | $ | 1,039,109 | |
2,920,486 | | Pool #CA0334, 3.50%, 9/1/47 | | | 2,930,068 | |
2,999,261 | | Pool #CA0534, 3.50%, 10/1/47 | | | 3,007,696 | |
1,207,544 | | Pool #CA0536, 3.50%, 10/1/47 | | | 1,210,940 | |
1,108,004 | | Pool #CA0551, 4.00%, 10/1/47 | | | 1,137,522 | |
1,146,122 | | Pool #CA0565, 3.50%, 10/1/47 | | | 1,150,778 | |
1,586,329 | | Pool #CA0742, 3.50%, 11/1/47 | | | 1,590,791 | |
1,073,916 | | Pool #CA0743, 3.50%, 11/1/47 | | | 1,077,272 | |
1,208,841 | | Pool #CA0825, 3.50%, 12/1/47 | | | 1,212,241 | |
1,850,001 | | Pool #CA0909, 3.50%, 12/1/47 | | | 1,855,204 | |
1,469,471 | | Pool #CA0981, 3.50%, 12/1/47 | | | 1,473,489 | |
2,850,991 | | Pool #CA1069, 3.50%, 1/1/48 | | | 2,858,787 | |
1,809,362 | | Pool #CA1070, 3.50%, 1/1/48 | | | 1,814,168 | |
1,434,835 | | Pool #CA1115, 3.50%, 1/1/48 | | | 1,438,647 | |
1,071,586 | | Pool #CA1116, 3.50%, 1/1/48 | | | 1,074,433 | |
1,940,629 | | Pool #CA1130, 3.50%, 1/1/48 | | | 1,945,784 | |
1,905,697 | | Pool #CA1131, 3.50%, 2/1/48 | | | 1,910,759 | |
1,878,942 | | Pool #CA1132, 3.50%, 1/1/48 | | | 1,883,933 | |
1,901,173 | | Pool #CA1133, 3.50%, 2/1/48 | | | 1,906,223 | |
1,981,088 | | Pool #CA1134, 3.50%, 1/1/48 | | | 1,986,351 | |
1,914,768 | | Pool #CA1137, 3.50%, 2/1/48 | | | 1,919,854 | |
1,899,265 | | Pool #CA1140, 3.50%, 1/1/48 | | | 1,904,310 | |
1,874,653 | | Pool #CA1144, 3.50%, 2/1/48 | | | 1,879,632 | |
5,298,281 | | Pool #CA1152, 3.50%, 2/1/48(a) | | | 5,312,354 | |
1,119,365 | | Pool #CA1160, 3.50%, 2/1/48 | | | 1,122,338 | |
1,136,948 | | Pool #CA1161, 3.50%, 2/1/48 | | | 1,139,968 | |
1,032,617 | | Pool #CA1162, 3.50%, 2/1/48 | | | 1,035,360 | |
1,466,311 | | Pool #CA1338, 4.00%, 3/1/48 | | | 1,505,832 | |
1,873,702 | | Pool #CA1339, 3.50%, 3/1/48 | | | 1,878,679 | |
1,969,518 | | Pool #CA1418, 4.00%, 3/1/48 | | | 2,022,295 | |
1,736,414 | | Pool #CA1420, 4.00%, 3/1/48 | | | 1,783,216 | |
1,121,752 | | Pool #CA1468, 4.00%, 3/1/48 | | | 1,151,987 | |
2,761,535 | | Pool #CA1469, 4.00%, 3/1/48 | | | 2,835,536 | |
1,138,970 | | Pool #CA1471, 4.00%, 3/1/48 | | | 1,169,669 | |
54,969 | | Pool #MC0013, 5.50%, 12/1/38 | | | 61,263 | |
90,069 | | Pool #MC0014, 5.50%, 12/1/38 | | | 100,550 | |
73,595 | | Pool #MC0016, 5.50%, 11/1/38 | | | 81,331 | |
144,155 | | Pool #MC0038, 4.50%, 3/1/39 | | | 154,584 | |
49,627 | | Pool #MC0059, 4.00%, 4/1/39 | | | 51,864 | |
87,684 | | Pool #MC0081, 4.00%, 5/1/39 | | | 90,828 | |
108,552 | | Pool #MC0112, 4.50%, 6/1/39 | | | 116,643 | |
92,831 | | Pool #MC0127, 4.50%, 7/1/39 | | | 98,328 | |
61,729 | | Pool #MC0135, 4.50%, 6/1/39 | | | 66,195 | |
517,723 | | Pool #MC0154, 4.50%, 8/1/39 | | | 550,324 | |
92,772 | | Pool #MC0160, 4.50%, 8/1/39 | | | 98,266 | |
216,853 | | Pool #MC0171, 4.50%, 9/1/39 | | | 232,474 | |
319,027 | | Pool #MC0177, 4.50%, 9/1/39 | | | 337,371 | |
125,824 | | Pool #MC0270, 4.50%, 3/1/40 | | | 133,059 | |
15
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$ 367,771 | | Pool #MC0325, 4.50%, 7/1/40 | | $ | 394,090 | |
94,043 | | Pool #MC0426, 4.50%, 1/1/41 | | | 99,363 | |
532,615 | | Pool #MC0584, 4.00%, 1/1/42 | | | 550,882 | |
164,676 | | Pool #MC0585, 4.00%, 1/1/42 | | | 170,324 | |
65,354 | | Pool #MC3344, 5.00%, 12/1/38 | | | 71,192 | |
| | | | | | |
| | | | | 354,559,125 | |
| | | | | | |
Freddie Mac — 12.88% | | | | |
83,315 | | Pool #A10124, 5.00%, 6/1/33 | | | 89,891 | |
130,808 | | Pool #A10548, 5.00%, 6/1/33 | | | 140,673 | |
224,034 | | Pool #A12237, 5.00%, 8/1/33 | | | 241,314 | |
92,254 | | Pool #A12969, 4.50%, 8/1/33 | | | 97,386 | |
34,727 | | Pool #A12985, 5.00%, 8/1/33 | | | 37,682 | |
58,342 | | Pool #A12986, 5.00%, 8/1/33 | | | 63,331 | |
39,700 | | Pool #A14028, 4.50%, 9/1/33 | | | 42,002 | |
133,623 | | Pool #A14325, 5.00%, 9/1/33 | | | 144,179 | |
81,319 | | Pool #A15268, 6.00%, 10/1/33 | | | 91,673 | |
267,880 | | Pool #A15579, 5.50%, 11/1/33 | | | 293,539 | |
48,781 | | Pool #A17393, 5.50%, 12/1/33 | | | 53,344 | |
110,321 | | Pool #A17397, 5.50%, 1/1/34 | | | 122,175 | |
239,080 | | Pool #A18617, 5.50%, 1/1/34 | | | 264,309 | |
256,013 | | Pool #A19019, 5.50%, 2/1/34 | | | 284,217 | |
83,378 | | Pool #A20070, 5.50%, 3/1/34 | | | 92,415 | |
311,597 | | Pool #A20540, 5.50%, 4/1/34 | | | 342,337 | |
107,069 | | Pool #A21679, 5.50%, 4/1/34 | | | 116,137 | |
165,757 | | Pool #A23192, 5.00%, 5/1/34 | | | 179,043 | |
433,810 | | Pool #A25310, 5.00%, 6/1/34 | | | 467,327 | |
175,673 | | Pool #A25311, 5.00%, 6/1/34 | | | 189,672 | |
76,285 | | Pool #A26395, 6.00%, 9/1/34 | | | 85,889 | |
167,991 | | Pool #A28241, 5.50%, 10/1/34 | | | 185,851 | |
15,045 | | Pool #A30055, 5.00%, 11/1/34 | | | 16,057 | |
182,781 | | Pool #A30591, 6.00%, 12/1/34 | | | 205,626 | |
242,412 | | Pool #A31135, 5.50%, 12/1/34 | | | 266,606 | |
235,976 | | Pool #A33167, 5.00%, 1/1/35 | | | 253,972 | |
207,691 | | Pool #A34999, 5.50%, 4/1/35 | | | 229,962 | |
416,711 | | Pool #A37185, 5.00%, 9/1/35 | | | 450,057 | |
195,249 | | Pool #A38830, 5.00%, 5/1/35 | | | 209,967 | |
96,385 | | Pool #A40538, 5.00%, 12/1/35 | | | 103,387 | |
122,996 | | Pool #A42095, 5.50%, 1/1/36 | | | 136,080 | |
110,586 | | Pool #A42097, 5.00%, 1/1/36 | | | 119,509 | |
166,739 | | Pool #A42098, 5.50%, 1/1/36 | | | 183,394 | |
327,092 | | Pool #A42803, 5.50%, 2/1/36 | | | 362,543 | |
102,873 | | Pool #A42805, 6.00%, 2/1/36 | | | 115,393 | |
234,754 | | Pool #A44639, 5.50%, 3/1/36 | | | 258,124 | |
270,568 | | Pool #A45396, 5.00%, 6/1/35 | | | 292,206 | |
147,222 | | Pool #A46321, 5.50%, 7/1/35 | | | 163,713 | |
204,520 | | Pool #A46746, 5.50%, 8/1/35 | | | 226,667 | |
89,841 | | Pool #A46996, 5.50%, 9/1/35 | | | 99,793 | |
16
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$ 312,957 | | Pool #A46997, 5.50%, 9/1/35 | | $ | 343,801 | |
132,598 | | Pool #A47552, 5.00%, 11/1/35 | | | 143,686 | |
242,928 | | Pool #A47553, 5.00%, 11/1/35 | | | 262,377 | |
85,626 | | Pool #A47554, 5.50%, 11/1/35 | | | 95,745 | |
157,451 | | Pool #A48789, 6.00%, 5/1/36 | | | 175,557 | |
82,243 | | Pool #A49013, 6.00%, 5/1/36 | | | 92,811 | |
77,028 | | Pool #A49843, 6.00%, 6/1/36 | | | 86,414 | |
272,826 | | Pool #A49844, 6.00%, 6/1/36 | | | 304,525 | |
15,412 | | Pool #A49845, 6.50%, 6/1/36 | | | 16,248 | |
84,100 | | Pool #A50128, 6.00%, 6/1/36 | | | 91,199 | |
268,061 | | Pool #A59530, 5.50%, 4/1/37 | | | 293,862 | |
197,039 | | Pool #A59964, 5.50%, 4/1/37 | | | 218,560 | |
82,066 | | Pool #A61754, 5.50%, 5/1/37 | | | 91,286 | |
95,746 | | Pool #A61915, 5.50%, 6/1/37 | | | 106,233 | |
144,120 | | Pool #A61916, 6.00%, 6/1/37 | | | 160,870 | |
102,269 | | Pool #A63456, 5.50%, 6/1/37 | | | 113,470 | |
152,268 | | Pool #A64012, 5.50%, 7/1/37 | | | 166,924 | |
92,433 | | Pool #A64015, 6.00%, 7/1/37 | | | 103,644 | |
409,479 | | Pool #A66061, 5.50%, 8/1/37 | | | 453,178 | |
225,779 | | Pool #A66122, 6.00%, 8/1/37 | | | 253,254 | |
99,822 | | Pool #A66133, 6.00%, 6/1/37 | | | 112,343 | |
205,879 | | Pool #A68766, 6.00%, 10/1/37 | | | 231,036 | |
68,821 | | Pool #A70292, 5.50%, 7/1/37 | | | 75,628 | |
113,357 | | Pool #A75113, 5.00%, 3/1/38 | | | 122,501 | |
90,143 | | Pool #A76187, 5.00%, 4/1/38 | | | 97,766 | |
721,461 | | Pool #A91887, 5.00%, 4/1/40 | | | 789,802 | |
281,557 | | Pool #A92388, 4.50%, 5/1/40 | | | 297,934 | |
439,889 | | Pool #A93962, 4.50%, 9/1/40 | | | 465,474 | |
546,387 | | Pool #A95573, 4.00%, 12/1/40 | | | 566,087 | |
270,091 | | Pool #A96339, 4.00%, 12/1/40 | | | 279,829 | |
413,224 | | Pool #A97099, 4.00%, 1/1/41 | | | 428,123 | |
459,052 | | Pool #A97715, 4.00%, 3/1/41 | | | 475,316 | |
378,266 | | Pool #A97716, 4.50%, 3/1/41 | | | 399,735 | |
30,916 | | Pool #B31140, 6.50%, 10/1/31 | | | 32,864 | |
65,318 | | Pool #B31493, 5.00%, 2/1/34 | | | 67,822 | |
54,471 | | Pool #B31532, 5.00%, 5/1/34 | | | 56,562 | |
82,585 | | Pool #B31546, 5.50%, 5/1/34 | | | 86,817 | |
50,255 | | Pool #B31547, 5.50%, 5/1/34 | | | 52,834 | |
83,309 | | Pool #B31551, 5.50%, 6/1/34 | | | 87,559 | |
58,900 | | Pool #B31587, 5.00%, 11/1/34 | | | 61,195 | |
58,511 | | Pool #B31588, 5.50%, 11/1/34 | | | 61,499 | |
13,121 | | Pool #B50450, 4.50%, 1/1/19 | | | 13,193 | |
1,862 | | Pool #B50470, 4.50%, 4/1/19 | | | 1,873 | |
34,481 | | Pool #B50496, 5.50%, 9/1/19 | | | 34,965 | |
18,674 | | Pool #B50499, 5.00%, 11/1/19 | | | 18,859 | |
15,969 | | Pool #B50504, 5.50%, 11/1/19 | | | 16,218 | |
41,038 | | Pool #B50506, 5.00%, 11/1/19 | | | 41,588 | |
33,728 | | Pool #C37233, 7.50%, 2/1/30 | | | 38,050 | |
17
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$ 104,042 | | Pool #C51686, 6.50%, 5/1/31 | | $ | 116,940 | |
50,615 | | Pool #C53210, 6.50%, 6/1/31 | | | 56,948 | |
42,469 | | Pool #C60020, 6.50%, 11/1/31 | | | 47,746 | |
46,899 | | Pool #C65616, 6.50%, 3/1/32 | | | 52,216 | |
41,851 | | Pool #C73273, 6.00%, 11/1/32 | | | 46,727 | |
160,318 | | Pool #C73525, 6.00%, 11/1/32 | | | 181,045 | |
52,161 | | Pool #C74672, 5.50%, 11/1/32 | | | 57,556 | |
80,306 | | Pool #C77844, 5.50%, 3/1/33 | | | 84,888 | |
57,069 | | Pool #C77845, 5.50%, 3/1/33 | | | 63,239 | |
34,884 | | Pool #C78252, 5.50%, 3/1/33 | | | 38,100 | |
54,908 | | Pool #J00980, 5.00%, 1/1/21 | | | 56,392 | |
8,471 | | Pool #J05466, 5.50%, 6/1/22 | | | 8,567 | |
435,307 | | Pool #J21142, 2.50%, 11/1/27 | | | 431,447 | |
562,035 | | Pool #J23532, 2.50%, 5/1/28 | | | 554,241 | |
152,405 | | Pool #Q00465, 4.50%, 4/1/41 | | | 161,007 | |
682,821 | | Pool #Q05867, 3.50%, 12/1/41 | | | 690,262 | |
375,257 | | Pool #Q06239, 3.50%, 1/1/42 | | | 379,347 | |
316,732 | | Pool #Q06406, 4.00%, 2/1/42 | | | 327,657 | |
1,199,470 | | Pool #Q13349, 3.00%, 11/1/42 | | | 1,179,698 | |
1,247,670 | | Pool #Q17662, 3.00%, 4/1/43 | | | 1,227,103 | |
1,070,020 | | Pool #Q18754, 3.00%, 6/1/43 | | | 1,052,381 | |
949,301 | | Pool #Q18772, 3.00%, 6/1/43 | | | 933,652 | |
971,777 | | Pool #Q32756, 3.00%, 4/1/45 | | | 952,417 | |
999,319 | | Pool #Q33966, 3.50%, 6/1/45 | | | 1,005,213 | |
1,122,285 | | Pool #Q41898, 3.50%, 7/1/46 | | | 1,127,852 | |
812,577 | | Pool #Q41900, 3.50%, 7/1/46 | | | 816,354 | |
1,260,440 | | Pool #Q41901, 3.50%, 7/1/46 | | | 1,266,693 | |
1,327,175 | | Pool #Q43155, 3.00%, 9/1/46 | | | 1,296,588 | |
1,417,722 | | Pool #Q43157, 3.00%, 9/1/46 | | | 1,385,048 | |
1,004,306 | | Pool #V82990, 4.00%, 3/1/47 | | | 1,032,356 | |
1,006,867 | | Pool #V83121, 3.50%, 3/1/47 | | | 1,010,918 | |
2,709,213 | | Pool #V83123, 4.00%, 5/1/47 | | | 2,783,187 | |
2,171,121 | | Pool #V83124, 3.50%, 4/1/47 | | | 2,179,856 | |
2,311,911 | | Pool #V83185, 3.50%, 5/1/47 | | | 2,321,212 | |
2,081,686 | | Pool #V83186, 4.00%, 5/1/47 | | | 2,138,526 | |
1,873,545 | | Pool #V83446, 3.50%, 9/1/47 | | | 1,879,034 | |
2,154,184 | | Pool #V83528, 3.50%, 11/1/47 | | | 2,160,495 | |
1,594,830 | | Pool #V83558, 3.50%, 10/1/47 | | | 1,599,502 | |
1,079,992 | | Pool #V83568, 3.50%, 11/1/47 | | | 1,083,156 | |
1,885,137 | | Pool #V83750, 3.50%, 12/1/47 | | | 1,890,659 | |
5,096,150 | | Pool #V83890, 3.50%, 2/1/48 | | | 5,110,283 | |
1,411,226 | | Pool #V83900, 3.50%, 1/1/48 | | | 1,415,140 | |
3,109,093 | | Pool #V83915, 3.50%, 1/1/48 | | | 3,117,716 | |
3,501,036 | | Pool #V83916, 4.00%, 1/1/48 | | | 3,595,537 | |
1,029,139 | | Pool #V84044, 4.00%, 1/1/48 | | | 1,056,837 | |
1,607,480 | | Pool #WA3103, 3.30%, 2/1/27 | | | 1,600,444 | |
2,000,000 | | Pool #WN3000, 3.14%, 1/1/28(b) | | | 1,978,726 | |
1,046,936 | | Series 2017-SB42, Class A10F, 2.96%, 10/1/27(c) | | | 1,023,497 | |
18
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$ 1,996,478 | | Series 2017-SB43, Class A10F, 3.00%, 10/1/27(c) | | $ | 1,951,908 | |
996,908 | | Series 2017-SB43, Class A10H, (LIBOR USD 1-Month + 3.190%), 3.20%, 10/1/37(d) | | | 974,529 | |
1,747,211 | | Series 2017-SB44, Class A10F, 3.03%, 11/1/27(c) | | | 1,705,285 | |
629,322 | | Series 2018-SB45, Class A10F, 3.16%, 11/1/27(c) | | | 621,593 | |
3,900,000 | | Series 2018-SB47, Class A10F, 3.35%, 1/1/28(b),(c) | | | 3,914,987 | |
| | | | | | |
| | | | | 79,647,265 | |
| | | | | | |
Ginnie Mae — 24.23% | | | | |
87,164 | | Pool #409117, 5.50%, 6/1/38 | | | 94,229 | |
686,391 | | Pool #442423, 4.00%, 9/1/41 | | | 711,836 | |
97,621 | | Pool #487643, 5.00%, 2/1/39 | | | 105,312 | |
269,814 | | Pool #616936, 5.50%, 1/1/36 | | | 296,396 | |
313,413 | | Pool #617904, 5.75%, 9/1/23 | | | 313,662 | |
1,414,480 | | Pool #618363, 4.00%, 9/1/41 | | | 1,466,915 | |
463,559 | | Pool #624106, 5.13%, 3/1/34 | | | 463,611 | |
320,981 | | Pool #654705, 4.00%, 9/1/41 | | | 332,880 | |
404,233 | | Pool #664269, 5.85%, 6/1/38 | | | 408,275 | |
25,011 | | Pool #675509, 5.50%, 6/1/38 | | | 27,770 | |
280,109 | | Pool #697672, 5.50%, 12/1/38 | | | 308,481 | |
276,028 | | Pool #697814, 5.00%, 2/1/39 | | | 297,776 | |
365,587 | | Pool #697885, 4.50%, 3/1/39 | | | 386,537 | |
112,105 | | Pool #698112, 4.50%, 5/1/39 | | | 118,564 | |
524,114 | | Pool #698113, 4.50%, 5/1/39 | | | 554,312 | |
130,919 | | Pool #699294, 5.63%, 9/1/38 | | | 142,322 | |
1,641,567 | | Pool #713519, 6.00%, 7/1/39 | | | 1,845,608 | |
116,967 | | Pool #714561, 4.50%, 6/1/39 | | | 123,706 | |
279,267 | | Pool #716822, 4.50%, 4/1/39 | | | 295,358 | |
238,526 | | Pool #716823, 4.50%, 4/1/39 | | | 252,269 | |
120,285 | | Pool #717132, 4.50%, 5/1/39 | | | 127,478 | |
519,336 | | Pool #720080, 4.50%, 6/1/39 | | | 552,119 | |
232,686 | | Pool #720521, 5.00%, 8/1/39 | | | 252,274 | |
559,692 | | Pool #724629, 5.00%, 7/1/40 | | | 602,194 | |
855,459 | | Pool #726550, 5.00%, 9/1/39 | | | 926,936 | |
278,369 | | Pool #729018, 4.50%, 2/1/40 | | | 293,940 | |
380,577 | | Pool #729346, 4.50%, 7/1/41 | | | 402,623 | |
478,299 | | Pool #738844, 3.50%, 10/1/41 | | | 484,614 | |
323,699 | | Pool #738845, 3.50%, 10/1/41 | | | 327,973 | |
1,210,834 | | Pool #738862, 4.00%, 10/1/41 | | | 1,256,572 | |
330,459 | | Pool #747241, 5.00%, 9/1/40 | | | 354,624 | |
781,744 | | Pool #748654, 3.50%, 9/1/40 | | | 791,332 | |
154,057 | | Pool #748846, 4.50%, 9/1/40 | | | 165,105 | |
501,352 | | Pool #757016, 3.50%, 11/1/40 | | | 507,502 | |
450,298 | | Pool #757017, 4.00%, 12/1/40 | | | 467,571 | |
558,791 | | Pool #759297, 4.00%, 1/1/41 | | | 580,204 | |
353,795 | | Pool #759298, 4.00%, 2/1/41 | | | 367,352 | |
266,270 | | Pool #762877, 4.00%, 4/1/41 | | | 276,577 | |
298,890 | | Pool #763564, 4.50%, 5/1/41 | | | 316,204 | |
19
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$ 292,244 | | Pool #770391, 4.50%, 6/1/41 | | $ | 309,174 | |
497,128 | | Pool #770481, 4.00%, 8/1/41 | | | 515,906 | |
117,155 | | Pool #770482, 4.50%, 8/1/41 | | | 126,266 | |
621,162 | | Pool #770517, 4.00%, 8/1/41 | | | 644,626 | |
536,234 | | Pool #770529, 4.00%, 8/1/41 | | | 556,490 | |
538,350 | | Pool #770537, 4.00%, 8/1/41 | | | 558,686 | |
381,597 | | Pool #770738, 4.50%, 6/1/41 | | | 403,300 | |
548,311 | | Pool #779592, 4.00%, 11/1/41 | | | 568,637 | |
130,360 | | Pool #779593, 4.00%, 11/1/41 | | | 135,193 | |
477,154 | | Pool #AA6312, 3.00%, 4/1/43 | | | 472,606 | |
801,240 | | Pool #AA6424, 3.00%, 5/1/43 | | | 793,353 | |
1,300,951 | | Pool #AB2733, 3.50%, 8/1/42 | | | 1,320,161 | |
2,109,487 | | Pool #AB2745, 3.00%, 8/1/42 | | | 2,088,721 | |
1,797,940 | | Pool #AB2841, 3.00%, 9/1/42 | | | 1,780,241 | |
523,318 | | Pool #AB2843, 3.00%, 9/1/42 | | | 518,167 | |
124,488 | | Pool #AB2852, 3.50%, 9/1/42 | | | 126,326 | |
5,378,865 | | Pool #AC9541, 2.12%, 2/1/48 | | | 5,029,515 | |
693,505 | | Pool #AE6946, 3.00%, 6/1/43 | | | 686,678 | |
184,536 | | Pool #AE8253, 4.00%, 2/1/44 | | | 191,088 | |
531,031 | | Pool #AG8915, 4.00%, 2/1/44 | | | 549,887 | |
996,645 | | Pool #AK6446, 3.00%, 1/1/45 | | | 983,409 | |
746,065 | | Pool #AK7036, 3.00%, 4/1/45 | | | 736,156 | |
1,044,913 | | Pool #AO3594, 3.50%, 8/1/45 | | | 1,057,077 | |
917,319 | | Pool #AO8336, 3.50%, 9/1/45 | | | 927,710 | |
1,189,924 | | Pool #AP3887, 3.50%, 9/1/45 | | | 1,203,403 | |
639,549 | | Pool #AR4919, 3.50%, 3/1/46 | | | 646,394 | |
1,167,290 | | Pool #AR4970, 3.50%, 4/1/46 | | | 1,179,783 | |
1,688,317 | | Pool #AR9008, 3.00%, 5/1/46 | | | 1,661,542 | |
1,775,832 | | Pool #AS2837, 3.50%, 3/1/46 | | | 1,794,839 | |
1,137,675 | | Pool #AS2921, 3.50%, 4/1/46 | | | 1,149,852 | |
1,005,690 | | Pool #AS4332, 3.00%, 6/1/46 | | | 989,741 | |
1,056,651 | | Pool #AS5511, 3.50%, 3/1/46 | | | 1,067,960 | |
1,552,520 | | Pool #AX7237, 3.50%, 11/1/46 | | | 1,567,196 | |
700,000 | | Series 2012-100, Class B, 2.31%, 11/1/51(c) | | | 648,701 | |
2,245,469 | | Series 2012-107, Class A, 1.15%, 1/1/45 | | | 2,060,788 | |
1,600,000 | | Series 2012-112, Class B, 2.61%, 1/1/53(c) | | | 1,523,604 | |
5,063,443 | | Series 2012-114, Class A, 2.10%, 1/1/53(c) | | | 4,761,067 | |
1,985,994 | | Series 2012-115, Class A, 2.13%, 4/1/45 | | | 1,897,256 | |
2,452,579 | | Series 2012-120, Class A, 1.90%, 2/1/53 | | | 2,282,119 | |
1,120,975 | | Series 2012-131, Class A, 1.90%, 2/1/53 | | | 1,059,845 | |
588,990 | | Series 2012-144, Class AD, 1.77%, 1/1/53 | | | 556,059 | |
6,000,000 | | Series 2012-33, Class B, 2.89%, 3/1/46 | | | 5,834,711 | |
200,000 | | Series 2012-35, Class C, 3.25%, 11/1/52(c) | | | 198,070 | |
1,600,000 | | Series 2012-45, Class C, 3.33%, 4/1/53(c) | | | 1,577,258 | |
1,471,686 | | Series 2012-53, Class AC, 2.38%, 12/1/43 | | | 1,428,899 | |
8,000,000 | | Series 2012-58, Class B, 2.20%, 3/1/44 | | | 7,585,616 | |
407,564 | | Series 2012-70, Class A, 1.73%, 5/1/42 | | | 400,879 | |
471,592 | | Series 2012-72, Class A, 1.71%, 5/1/42 | | | 466,399 | |
20
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$ 1,489,217 | | Series 2012-78, Class A, 1.68%, 3/1/44 | | $ | 1,456,487 | |
947,046 | | Series 2013-101, Class AG, 1.76%, 4/1/38 | | | 930,818 | |
1,114,601 | | Series 2013-105, Class A, 1.71%, 2/1/37 | | | 1,085,896 | |
1,075,021 | | Series 2013-107, Class A, 2.00%, 5/1/40 | | | 1,047,725 | |
421,984 | | Series 2013-126, Class BK, 2.45%, 10/1/47(c) | | | 401,506 | |
301,949 | | Series 2013-127, Class A, 2.00%, 3/1/52 | | | 298,198 | |
711,602 | | Series 2013-17, Class A, 1.13%, 1/1/49 | | | 674,762 | |
721,509 | | Series 2013-29, Class AB, 1.77%, 10/1/45 | | | 691,779 | |
696,353 | | Series 2013-33, Class A, 1.06%, 7/1/38 | | | 671,500 | |
1,961,722 | | Series 2013-63, Class AB, 1.38%, 3/1/45 | | | 1,847,363 | |
1,256,349 | | Series 2013-97, Class AC, 2.00%, 6/1/45 | | | 1,198,891 | |
734,287 | | Series 2014-148, Class A, 2.65%, 11/1/43 | | | 728,561 | |
2,838,718 | | Series 2014-172, Class AF, 2.50%, 9/1/41 | | | 2,808,993 | |
57,921 | | Series 2014-47, Class AB, 2.25%, 8/1/40 | | | 57,690 | |
262,259 | | Series 2014-54, Class AB, 2.62%, 10/1/43 | | | 260,986 | |
495,999 | | Series 2014-77, Class AC, 2.35%, 10/1/40 | | | 490,604 | |
660,231 | | Series 2014-82, Class AB, 2.40%, 5/1/45 | | | 649,718 | |
124,438 | | Series 2015-107, Class AB, 2.50%, 11/1/49 | | | 120,294 | |
2,613,071 | | Series 2015-114, Class AD, 2.50%, 10/31/51 | | | 2,538,363 | |
996,454 | | Series 2015-128, Class AD, 2.50%, 12/1/50 | | | 966,340 | |
759,134 | | Series 2015-130, Class AH, 2.90%, 8/1/47(c) | | | 748,627 | |
2,741,194 | | Series 2015-135, Class AC, 2.35%, 4/1/49 | | | 2,626,914 | |
1,011,202 | | Series 2015-136, Class AC, 2.50%, 3/1/47 | | | 982,223 | |
766,003 | | Series 2015-15, Class A, 2.00%, 11/1/48 | | | 726,058 | |
1,552,015 | | Series 2015-154, Class AD, 2.50%, 5/1/54 | | | 1,481,181 | |
950,550 | | Series 2015-171, Class DA, 2.37%, 3/1/46 | | | 912,884 | |
1,498,039 | | Series 2015-2, Class A, 2.50%, 12/1/44 | | | 1,473,990 | |
1,508,977 | | Series 2015-22, Class A, 2.40%, 8/1/47 | | | 1,462,249 | |
1,950,541 | | Series 2015-70, Class AB, 2.30%, 11/1/48 | | | 1,854,643 | |
349,208 | | Series 2015-75, Class A, 3.00%, 2/1/44 | | | 346,218 | |
331,634 | | Series 2015-98, Class AB, 2.20%, 11/1/43 | | | 322,156 | |
703,265 | | Series 2016-11, Class AD, 2.25%, 11/1/43 | | | 685,127 | |
932,144 | | Series 2016-14, Class AB, 2.15%, 8/1/42 | | | 902,909 | |
1,945,771 | | Series 2016-152, Class EA, 2.20%, 7/31/58 | | | 1,828,224 | |
2,406,551 | | Series 2016-157, Class AC, 2.00%, 11/1/50 | | | 2,273,469 | |
924,321 | | Series 2016-26, Class A, 2.25%, 12/1/55 | | | 898,703 | |
860,808 | | Series 2016-28, Class AB, 2.40%, 11/1/55 | | | 840,554 | |
762,753 | | Series 2016-36, Class AB, 2.30%, 6/1/56 | | | 735,312 | |
914,146 | | Series 2016-39, Class AH, 2.50%, 9/1/44 | | | 891,426 | |
1,061,359 | | Series 2016-50, Class A, 2.30%, 7/1/52 | | | 1,026,860 | |
2,323,073 | | Series 2016-64, Class CA, 2.30%, 3/1/45 | | | 2,246,157 | |
1,939,327 | | Series 2016-67, Class A, 2.30%, 7/1/56 | | | 1,877,092 | |
976,129 | | Series 2016-94, Class AC, 2.20%, 8/1/57 | | | 917,329 | |
835,484 | | Series 2016-96, Class BA, 1.95%, 3/1/43 | | | 806,720 | |
1,487,423 | | Series 2017-127, Class AB, 2.50%, 2/1/59 | | | 1,426,412 | |
1,489,739 | | Series 2017-135, Class AE, 2.60%, 10/1/58 | | | 1,423,289 | |
992,623 | | Series 2017-140, Class A, 2.50%, 2/1/59 | | | 951,264 | |
496,614 | | Series 2017-157, Class AH, 2.55%, 2/1/53 | | | 481,285 | |
21
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$1,474,112 | | Series 2017-23, Class AC, 2.30%, 3/1/57 | | $ | 1,423,807 | |
1,970,188 | | Series 2017-41, Class AC, 2.25%, 3/1/57 | | | 1,897,920 | |
1,180,821 | | Series 2017-46, Class A, 2.50%, 11/1/57 | | | 1,121,785 | |
2,128,135 | | Series 2017-71, Class AS, 2.70%, 4/1/57 | | | 2,054,409 | |
977,734 | | Series 2017-9, Class AE, 2.40%, 9/1/50 | | | 938,775 | |
3,931,618 | | Series 2017-94, Class AH, 2.60%, 2/1/59 | | | 3,776,040 | |
1,396,508 | | Series 2018-2, Class AD, 2.40%, 3/1/59 | | | 1,340,488 | |
998,626 | | Series 2018-26, Class AD, 2.50%, 3/1/52 | | | 973,425 | |
2,493,320 | | Series 2018-3, Class AG, 2.50%, 10/1/58 | | | 2,394,495 | |
| | | | | | |
| | | | | 150,217,260 | |
| | | | | | |
| |
Total U.S. Government Agency Backed Mortgages | | | 584,423,650 | |
| | | | | | |
(Cost $592,853,560) | | | | |
| |
U.S. Government Agency Obligations — 5.38% | | | | |
Small Business Administration — 5.35% | | | | |
374,036 | | 0.88%, 1/1/32(b) | | | 386,738 | |
49,278 | | 0.91%, 4/1/20(b) | | | 49,691 | |
5,644,370 | | 1.26%, 7/18/30(b),(e),(f) | | | 144,609 | |
115,916 | | (Prime Index - 2.700%), 1.80%, 3/25/29(d) | | | 115,323 | |
162,781 | | (Prime Index - 2.650%), 1.85%, 3/25/28(d) | | | 162,269 | |
937,377 | | (Prime Index - 2.600%), 1.90%, 7/25/41(d) | | | 937,359 | |
935,113 | | (Prime Index - 2.600%), 1.90%, 9/25/41(d) | | | 935,104 | |
471,706 | | (Prime Index - 2.600%), 1.90%, 9/25/41(d) | | | 471,702 | |
918,210 | | (Prime Index - 2.600%), 1.90%, 7/25/42(d) | | | 918,251 | |
1,827,558 | | (Prime Index - 2.550%), 1.95%, 7/25/42(d) | | | 1,833,481 | |
479,176 | | (Prime Index - 2.525%), 1.98%, 11/25/41(d) | | | 481,445 | |
984,918 | | (Prime Index - 2.500%), 2.00%, 2/25/28(d) | | | 987,218 | |
1,321,116 | | (Prime Index - 1.400%), 3.10%, 7/25/41(d) | | | 1,382,251 | |
42,890 | | 3.36%, 7/1/21(b) | | | 44,385 | |
1,060,131 | | 3.36%, 7/8/24(b) | | | 1,134,765 | |
54,178 | | 3.61%, 4/4/20(b) | | | 55,322 | |
349,389 | | 3.85%, 9/16/34(b) | | | 371,686 | |
786,548 | | (Prime Index - 0.373%), 4.12%, 11/25/27(d) | | | 834,118 | |
541,845 | | (Prime Index - 0.152%), 4.34%, 2/25/40(d) | | | 599,148 | |
930,599 | | (Prime Index - 0.013%), 4.49%, 7/25/29(d) | | | 1,008,636 | |
201,435 | | (Prime Index + 0.044%), 4.54%, 12/25/40(d) | | | 225,817 | |
1,264,145 | | (Prime Index + 0.103%), 4.60%, 8/25/29(d) | | | 1,373,924 | |
1,082,033 | | (Prime Index + 0.154%), 4.65%, 6/25/29(d) | | | 1,177,365 | |
1,146,327 | | (Prime Index + 0.194%), 4.70%, 11/25/28(d) | | | 1,245,299 | |
388,318 | | (Prime Index + 0.355%), 4.86%, 2/25/26(d) | | | 416,526 | |
47,076 | | 5.13%, 2/28/24(b) | | | 50,252 | |
962,863 | | (Prime Index + 0.685%), 5.19%, 3/25/30(d) | | | 1,074,726 | |
170,347 | | (Prime Index + 0.700%), 5.20%, 2/25/28(d) | | | 187,531 | |
176,766 | | (Prime Index + 0.745%), 5.25%, 8/25/27(d) | | | 194,166 | |
361,340 | | (Prime Index + 0.774%), 5.27%, 6/25/28(d) | | | 399,825 | |
818,282 | | (Prime Index + 0.774%), 5.27%, 9/25/28(d) | | | 906,930 | |
973,301 | | (Prime Index + 0.786%), 5.29%, 2/25/28(d) | | | 1,074,884 | |
22
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$ 814,885 | | (Prime Index + 0.800%), 5.29%, 3/25/29(d) | | $ | 907,196 | |
379,026 | | (Prime Index + 0.820%), 5.32%, 2/25/30(d) | | | 425,101 | |
1,388,105 | | (Prime Index + 0.843%), 5.34%, 5/25/29(d) | | | 1,550,248 | |
1,661,825 | | (Prime Index + 0.845%), 5.35%, 6/25/29(d) | | | 1,857,117 | |
1,638,682 | | (Prime Index + 0.858%), 5.36%, 2/25/29(d) | | | 1,827,553 | |
380,156 | | (Prime Index + 0.885%), 5.39%, 1/25/29(d) | | | 424,252 | |
954,322 | | (Prime Index + 0.890%), 5.39%, 7/25/30(d) | | | 1,076,346 | |
763,989 | | (Prime Index + 0.908%), 5.41%, 7/25/29(d) | | | 856,353 | |
1,628,885 | | (Prime Index + 1.131%), 5.63%, 9/25/28(d) | | | 1,825,805 | |
848,304 | | (Prime Index + 1.183%), 5.69%, 5/25/29(d) | | | 957,780 | |
155,356 | | (Prime Index + 1.211%), 5.71%, 11/25/26(d) | | | 171,873 | |
89,399 | | (Prime Index + 1.554%), 6.05%, 7/25/28(d) | | | 100,999 | |
| | | | | | |
| | | | | 33,161,369 | |
| | | | | | |
United States Department of Agriculture — 0.03% | | | | |
164,414 | | 5.38%, 10/26/22(b) | | | 169,564 | |
| | | | | | |
| |
Total U.S. Government Agency Obligations | | | 33,330,933 | |
| | | | | | |
(Cost $33,835,160) | | | | |
| |
Municipal Bonds — 4.02% | | | | |
California — 0.72% | | | | |
975,000 | | California Statewide Communities Development Authority Revenue, Series B, 5.25%, 10/20/42, (Credit Support: Ginnie Mae), Callable 5/11/18 @ 102 | | | 986,525 | |
1,000,000 | | City & County of San Francisco Affordable Housing GO, Series F, 2.39%, 6/15/26 | | | 944,040 | |
1,675,000 | | City of Los Angeles Housing GO, Series A, 2.95%, 9/1/28, Callable 9/1/27 @ 100 | | | 1,608,067 | |
1,000,000 | | City of Los Angeles Housing GO, Series A, 3.15%, 9/1/30, Callable 9/1/27 @ 100 | | | 950,560 | |
| | | | | | |
| | | | | 4,489,192 | |
| | | | | | |
Colorado — 0.08% | | | | |
486,014 | | Colorado Housing & Finance Authority Revenue, 3.40%, 11/1/45, (Credit Support: FHA) | | | 482,733 | |
| | | | | | |
| |
District of Columbia — 0.17% | | | | |
1,090,851 | | District of Columbia Housing Finance Agency Refunding Revenue, 3.24%, 3/1/49, (Credit Support: FHA) | | | 1,067,005 | |
| | | | | | |
| |
Georgia — 0.16% | | | | |
1,000,000 | | Atlanta Development Authority Revenue, 2.87%, 12/1/26 | | | 970,560 | |
| | | | | | |
23
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
Illinois — 0.19% | | | | |
$ 260,000 | | City of Chicago Multi Family Revenue, Mercy Preservation Project, 4.55%, 8/1/26, (Credit Support: Freddie Mac), Callable 8/1/20 @ 100 | | $ | 272,093 | |
973,490 | | Illinois State Housing Development Authority Revenue, Series A, 2.63%, 3/1/48, (Credit Support: FHA) | | | 926,032 | |
| | | | | | |
| | | | | 1,198,125 | |
| | | | | | |
Massachusetts — 0.24% | | | | |
250,000 | | Massachusetts Housing Finance Agency Revenue, Series 170, 2.21%, 6/1/18 | | | 249,645 | |
330,000 | | Massachusetts Housing Finance Agency Revenue, Series 170, 2.31%, 12/1/18 | | | 328,040 | |
160,000 | | Massachusetts Housing Finance Agency Revenue, Series 170, 2.51%, 6/1/19 | | | 159,648 | |
575,000 | | Massachusetts Housing Finance Agency Revenue, Series 170, 2.61%, 12/1/19 | | | 571,820 | |
205,000 | | Massachusetts Housing Finance Agency Revenue, Series 170, 3.09%, 6/1/20 | | | 206,714 | |
| | | | | | |
| | | | | 1,515,867 | |
| | | | | | |
Minnesota — 0.08% | | | | |
498,538 | | City of Minnetonka Housing Revenue, 3.00%, 11/1/34, (Credit Support: Fannie Mae) | | | 488,547 | |
| | | | | | |
Missouri — 0.67% | | | | |
4,206,839 | | Missouri Housing Development Commission Revenue, Series 1, 3.75%, 3/1/42, (Credit Support: FHA), Callable 3/1/25 @ 100 | | | 4,182,187 | |
| | | | | | |
New York — 1.69% | | | | |
400,000 | | New York City Housing Development Corp. Revenue, 1.93%, 11/1/21 | | | 387,444 | |
170,000 | | New York City Housing Development Corp. Revenue, 2.04%, 5/1/22 | | | 163,985 | |
100,000 | | New York City Housing Development Corp. Revenue, 2.14%, 11/1/22 | | | 96,276 | |
200,000 | | New York City Housing Development Corp. Revenue, 2.37%, 5/1/24 | | | 190,550 | |
40,000 | | New York City Housing Development Corp. Revenue, 2.47%, 11/1/24 | | | 38,160 | |
300,000 | | New York City Housing Development Corp. Revenue, 2.62%, 5/1/26, Callable 11/1/25 @ 100 | | | 282,939 | |
500,000 | | New York City Housing Development Corp. Revenue, Series B-1, 3.56%, 11/1/26, Callable 2/1/26 @ 100 | | | 504,500 | |
1,000,000 | | New York City Housing Development Corp. Revenue, Series B-1, 3.61%, 11/1/27, Callable 2/1/26 @ 100 | | | 1,006,010 | |
500,000 | | New York City Housing Development Corp. Revenue, 3.33%, 2/1/28, Callable 8/1/25 @ 100 | | | 489,590 | |
500,000 | | New York City Housing Development Corp. Revenue, Series B-1, 3.81%, 11/1/29, Callable 2/1/26 @ 100 | | | 502,000 | |
24
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
$ 650,000 | | New York State Housing Finance Agency Revenue, Series A, 4.50%, 11/15/27, (Credit Support: Fannie Mae), Callable 5/11/18 @ 100 | | $ | 650,592 | |
1,000,000 | | New York State Housing Finance Agency Revenue, Series A, 4.65%, 11/15/38, (Credit Support: Fannie Mae), Callable 5/11/18 @ 100 | | | 1,000,570 | |
1,140,000 | | New York State Mortgage Agency Revenue, Series 187, 1.59%, 4/1/18 | | | 1,140,000 | |
1,335,000 | | New York State Mortgage Agency Revenue, Series 184, 2.10%, 4/1/19 | | | 1,328,752 | |
1,335,000 | | New York State Mortgage Agency Revenue, Series 184, 1.59%, 4/1/18 | | | 1,335,000 | |
1,335,000 | | New York State Mortgage Agency Revenue, Series 184, 1.85%, 10/1/18 | | | 1,330,341 | |
| | | | | | |
| | | | | 10,446,709 | |
| | | | | | |
Vermont — 0.02% | | | | |
100,000 | | Vermont Housing Finance Agency Revenue, 3.45%, 11/1/29 | | | 98,120 | |
| | | | | | |
| |
Total Municipal Bonds | | | 24,939,045 | |
| | | | | | |
(Cost $25,149,911) | | | | |
| |
Corporate Bonds — 0.07% | | | | |
Consumer, Non-cyclical — 0.07% | | | | |
435,000 | | Montefiore Medical Center, 2.15%, 10/20/26 | | | 411,935 | |
| | | | | | |
| |
Total Corporate Bonds | | | 411,935 | |
| | | | | | |
(Cost $435,000) | | | | |
| | |
Shares | | | | | |
Investment Company — 1.07% | | | | |
6,654,320 | | U.S. Government Money Market Fund, RBC Institutional Class 1(g) | | | 6,654,320 | |
| | | | | | |
| |
Total Investment Company | | | 6,654,320 | |
| | | | | | |
(Cost $6,654,320) | | | | |
| |
Total Investments | | $ | 649,759,883 | |
(Cost $658,927,951)(h) — 104.87% | | | | |
Liabilities in excess of other assets — (4.87)% | | | (30,189,842) | |
| | | | | | |
NET ASSETS — 100.00% | | $ | 619,570,041 | |
| | | | | | |
25
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
(a) | This security is either fully or partially pledged as collateral for reverse repurchase agreements. |
(b) | The Pricing Committee has fair valued this security under procedures established by the Fund’s Board of Trustees. |
(c) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end. |
(d) | Variable rate security. The rate reflected in the Schedule of Portfolio Investments is the rate in effect on March 31, 2018. |
(e) | Interest Only security 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. |
(f) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(g) | Affiliated investment. |
(h) | See Notes to Financial Statements for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Financial futures contracts as of March 31, 2018:
| | | | | | | | | | | | | | | | | | | | |
Long Position | | Number of Contracts | | | Expiration Date | | Value/Unrealized Appreciation | | | Notional Value | | | Clearinghouse |
Five Year U.S. Treasury Notes | | | 100 | | | June 2018 | | $ | 56,310 | | | | USD | | | $ | 11,390,135 | | | Barclays Capital |
Ten Year U.S. Treasury Notes | | | 20 | | | June 2018 | | | 26,815 | | | | USD | | | | 2,395,998 | | | Barclays Capital |
| | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | $ | 83,125 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Reverse repurchase agreements as of March 31, 2018:
| | | | | | | | | | | | | | | | | | | | |
Counterparty | | Rate | | | Trade Date | | | Maturity Date | | | Net Closing Amount | | | Par Value | |
Citigroup Global Markets, Inc. | | | 1.78 | % | | | 2/2/18 | | | | 5/3/18 | | | $ | 4,457,749 | | | $ | 4,438,000 | |
Goldman Sachs | | | 1.71 | % | | | 2/12/18 | | | | 4/3/18 | | | | 13,611,250 | | | | 13,579,000 | |
Citigroup Global Markets, Inc. | | | 1.75 | % | | | 2/12/18 | | | | 4/17/18 | | | | 11,602,986 | | | | 11,567,000 | |
Citigroup Global Markets, Inc. | | | 1.91 | % | | | 3/13/18 | | | | 5/16/18 | | | | 5,042,063 | | | | 5,025,000 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | $ | 34,609,000 | |
| | | | | | | | | | | | | | | | | | | | |
26
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
Access Capital Community Investment Fund (cont.)
March 31, 2018 (Unaudited)
Abbreviations used are defined below:
FHA - Insured by Federal Housing Administration
GO - General Obligations
LIBOR - London Interbank Offered Rate
USD - United States Dollar
See Notes to the Financial Statements.
27
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Impact Bond Fund
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
U.S. Government Agency Backed Mortgages — 53.79% | | | | |
Fannie Mae — 43.97% | | | | |
$330,000 | | (TBA), 4.00%, 4/1/48 | | $ | 338,611 | |
400,000 | | (TBA), 3.00%, 4/1/48 | | | 390,156 | |
390,000 | | (TBA), 3.50%, 4/1/48 | | | 390,823 | |
140,000 | | (TBA), 4.50%, 4/1/48 | | | 146,584 | |
50,000 | | Pool #AN0360, 3.95%, 12/1/45 | | | 52,174 | |
97,208 | | Pool #AN1381, 2.56%, 8/1/26 | | | 93,455 | |
99,603 | | Pool #AN7868, 3.06%, 12/1/27 | | | 97,768 | |
99,864 | | Pool #AN8300, 3.03%, 2/1/30 | | | 97,089 | |
100,000 | | Pool #AN8458, 2.97%, 2/1/25 | | | 99,113 | |
100,000 | | Pool #BJ0657, 4.00%, 2/1/48 | | | 102,680 | |
100,000 | | Pool #BJ4987, 4.00%, 3/1/48 | | | 103,398 | |
100,000 | | Pool #BJ4993, 3.50%, 2/1/48 | | | 100,516 | |
99,728 | | Pool #CA1066, 4.00%, 1/1/48 | | | 102,400 | |
98,839 | | Pool #CA1068, 3.50%, 1/1/48 | | | 99,109 | |
| | | | | | |
| | | | | 2,213,876 | |
| | | | | | |
Freddie Mac — 5.99% | | | | |
100,000 | | Pool #V84044, 4.00%, 1/1/48 | | | 102,691 | |
99,892 | | Series 2018-SB45, Class A10F, 3.16%, 11/1/27(a) | | | 98,666 | |
100,000 | | Series 2018-SB47, Class A10F, 3.35%, 1/1/28(a),(b) | | | 100,384 | |
| | | | | | |
| | | | | 301,741 | |
| | | | | | |
Ginnie Mae — 3.83% | | | | |
99,751 | | Series 2018-2, Class AD, 2.40%, 3/1/59 | | | 95,749 | |
99,863 | | Series 2018-26, Class AD, 2.50%, 3/1/52 | | | 97,342 | |
| | | | | | |
| | | | | 193,091 | |
| | | | | | |
| |
Total U.S. Government Agency Backed Mortgages | | | 2,708,708 | |
| | | | | | |
(Cost $2,714,981) | | | | |
| |
U.S. Treasury Obligations — 38.94% | | | | |
U.S. Treasury Bonds — 2.94% | | | | |
155,000 | | 2.75%, 11/15/47 | | | 148,176 | |
| | | | | | |
U.S. Treasury Notes — 36.00% | | | | |
300,000 | | 1.13%, 1/31/19 | | | 297,610 | |
600,000 | | 1.38%, 1/31/21 | | | 583,336 | |
500,000 | | 1.63%, 12/31/19 | | | 494,531 | |
200,000 | | 1.75%, 1/31/23 | | | 192,672 | |
250,000 | | 1.88%, 1/31/22 | | | 244,336 | |
| | | | | | |
| | | | | 1,812,485 | |
| | | | | | |
| |
Total U.S. Treasury Obligations | | | 1,960,661 | |
| | | | | | |
(Cost $1,985,551) | | | | |
28
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Impact Bond Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
Municipal Bonds — 12.69% | | | | |
California — 4.85% | | | | |
$100,000 | | City of Los Angeles Housing GO, Series A, 2.95%, 9/1/28, Callable 9/1/27 @ 100 | | $ | 96,004 | |
100,000 | | City of Sunnyvale Wastewater Revenue Series A, 3.20%, 4/1/26 | | | 98,208 | |
50,000 | | County of Alameda Housing GO, Series A, 2.56%, 8/1/20 | | | 50,022 | |
| | | | | | |
| | | | | 244,234 | |
| | | | | | |
Colorado — 0.99% | | | | |
50,000 | | Denver City & County School District No 1 GO, Series B, 2.99%, 12/1/24, (Credit Support: State Aid Withholding) | | | 49,779 | |
| | | | | | |
| |
Georgia — 2.92% | | | | |
75,000 | | Atlanta Urban Residential Finance Authority Revenue, Series A, 2.39%, 12/1/22 | | | 73,168 | |
75,000 | | Macon-Bibb County Urban Development Authority Revenue, Series A, 3.00%, 12/1/24, (Credit Support: County Guaranteed) | | | 74,048 | |
| | | | | | |
| | | | | 147,216 | |
| | | | | | |
New Jersey — 1.98% | | | | |
100,000 | | Township of Brick GO, Series B, 3.00%, 9/1/22 | | | 99,476 | |
| | | | | | |
| |
Vermont — 1.95% | | | | |
100,000 | | Vermont Housing Finance Agency Revenue, 3.45%, 11/1/29 | | | 98,120 | |
| | | | | | |
| |
Total Municipal Bonds | | | 638,825 | |
| | | | | | |
(Cost $645,879) | | | | |
| |
U.S. Government Agency Obligations — 6.40% | | | | |
Small Business Administration — 6.40% | | | | |
98,492 | | (Prime Index - 2.500%), 2.00%, 2/25/28(c) | | | 98,722 | |
99,503 | | (Prime Rate + 0.627%), 5.13%, 3/25/43(c) | | | 114,974 | |
98,723 | | (Prime Index + 0.700%), 5.20%, 2/25/28(c) | | | 108,682 | |
| | | | | | |
| | | | | 322,378 | |
| | | | | | |
| |
Total U.S. Government Agency Obligations | | | 322,378 | |
| | | | | | |
(Cost $323,069) | | | | |
| |
Asset Backed Securities — 1.98% | | | | |
100,000 | | Tesla Auto Lease Trust, Series 2018-A, Class C, 2.97%, 4/20/20(d) | | | 99,731 | |
| | | | | | |
Total Asset Backed Securities | | | 99,731 | |
| | | | | | |
(Cost $99,987) | | | | |
29
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Impact Bond Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
Corporate Bonds — 1.97% | | | | |
Technology — 1.97% | | | | |
$100,000 | | Apple, Inc., 2.85%, 2/23/23 | | $ | 99,178 | |
| | | | | | |
| |
Total Corporate Bonds | | | 99,178 | |
| | | | | | |
(Cost $98,711) | | | | |
| | |
Shares | | | | | |
Investment Company — 11.15% | | | | |
561,386 | | U.S. Government Money Market Fund, RBC Institutional Class 1(e) | | | 561,386 | |
| | | | | | |
| |
Total Investment Company | | | 561,386 | |
| | | | | | |
(Cost $561,386) | | | | |
| |
Total Investments | | $ | 6,390,867 | |
(Cost $6,429,564)(f) — 126.92% | | | | |
| |
Liabilities in excess of other assets — (26.92)% | | | (1,355,510) | |
| | | | | | |
NET ASSETS — 100.00% | | $ | 5,035,357 | |
| | | | | | |
(a) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end. |
(b) | The Pricing Committee has fair valued this security under procedures established by the Fund’s Board of Trustees. |
(c) | Variable rate security. The rate reflected in the Schedule of Portfolio Investments is the rate in effect on March 31, 2018. |
(d) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(e) | Affiliated investment. |
(f) | See Notes to Financial Statements for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Abbreviations used are defined below:
GO - General Obligations
TBA - To-be-announced
See Notes to the Financial Statements.
30
|
FINANCIAL STATEMENTS |
Statements of Assets and Liabilities |
March 31, 2018 (Unaudited)
| | | | | | | | |
| | Access Capital Community Investment Fund | | | RBC Impact Bond Fund | |
Assets: | | | | | | | | |
Investments in securities, at value: | | | | | | | | |
Unaffiliated investments (cost $652,273,631 and $5,868,178, respectively) | | $ | 643,105,563 | | | $ | 5,829,481 | |
Affiliated investments (cost $6,654,320 and $561,386, respectively) | | | 6,654,320 | | | | 561,386 | |
Cash at broker for financial future contracts | | | 4,349,137 | | | | — | |
Interest and dividend receivable | | | 1,985,390 | | | | 17,491 | |
Receivable from advisor | | | — | | | | 17,319 | |
Receivable for capital shares issued | | | 1,336,204 | | | | — | |
Receivable for investments sold | | | 229,762 | | | | 1,559 | |
Unrealized appreciation on futures contracts | | | 83,125 | | | | — | |
Prepaid expenses and other assets | | | 25,925 | | | | 3,258 | |
| | | | | | | | |
Total Assets | | | 657,769,426 | | | | 6,430,494 | |
| | | | | | | | |
Liabilities: | | | | | | | | |
Cash overdraft | | | 125 | | | | — | |
Distributions payable | | | 752,731 | | | | — | |
Payable for capital shares redeemed | | | 192,648 | | | | 9 | |
Payable for investments purchased | | | 2,234,413 | | | | 1,361,580 | |
Reverse repurchase agreements (including interest of $75,378 and $0, respectively) | | | 34,684,378 | | | | — | |
Accrued expenses and other payables: | | | | | | | | |
Investment advisory fees | | | 267,016 | | | | — | |
Accounting fees | | | 13,919 | | | | 6,225 | |
Audit fees | | | 34,096 | | | | 14,406 | |
Trustees’ fees | | | — | | | | 174 | |
Distribution fees | | | 6,449 | | | | — | |
Transfer agent fees | | | — | | | | 1,855 | |
Other | | | 13,610 | | | | 10,888 | |
| | | | | | | | |
Total Liabilities | | | 38,199,385 | | | | 1,395,137 | |
| | | | | | | | |
Net Assets | | $ | 619,570,041 | | | $ | 5,035,357 | |
| | | | | | | | |
Net Assets Consists of: | | | | | | | | |
Capital | | $ | 669,240,687 | | | $ | 5,149,194 | |
Distributions in excess of net investment income | | | (2,055,666 | ) | | | (255 | ) |
Accumulated net realized losses from investment transactions and futures contracts | | | (38,530,037 | ) | | | (74,885 | ) |
Net unrealized depreciation on investments and futures contracts | | | (9,084,943 | ) | | | (38,697 | ) |
| | | | | | | | |
Net Assets | | $ | 619,570,041 | | | $ | 5,035,357 | |
| | | | | | | | |
31
Statements of Assets and Liabilities (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | |
| | Access Capital Community Investment Fund | | | RBC Impact Bond Fund | |
Net Assets | | | | | | | | |
Class A | | $ | 23,083,315 | | | $ | N/A | |
Class I | | | 596,486,726 | | | | 2,579,363 | |
Class R6 | | | N/A | | | | 2,455,994 | |
| | | | | | | | |
Total | | $ | 619,570,041 | | | $ | 5,035,357 | |
| | | | | | | | |
Shares Outstanding (1,000,000,000 shares authorized, 100,000,000 shares registered at $.0000001 par value for Access Capital Community Investment Fund/Unlimited number of shares authorized, no par value for RBC Impact Bond Fund): | | | | | | | | |
Class A | | | 2,631,778 | | | | N/A | |
Class I | | | 68,042,285 | | | | 263,979 | |
Class R6 | | | N/A | | | | 251,352 | |
| | | | | | | | |
Total | | | 70,674,063 | | | | 515,331 | |
| | | | | | | | |
Net Asset Values and Redemption Prices Per Share: | | | | | | | | |
Class A(a) | | $ | 8.77 | | | $ | N/A | |
| | | | | | | | |
Class I | | $ | 8.77 | | | $ | 9.77 | |
| | | | | | | | |
Class R6 | | $ | N/A | | | $ | 9.77 | |
| | | | | | | | |
Maximum Offering Price Per Share: | | | | | | | | |
Class A | | $ | 9.11 | | | $ | N/A | |
| | | | | | | | |
Maximum Sales Charge - Class A | | | 3.75 | % | | | 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. |
See Notes to the Financial Statements.
32
Statements of Operations
For the Six Months Ended March 31, 2018 (Unaudited)
| | | | | | | | |
| | Access Capital Community Investment Fund | | | RBC Impact Bond Fund(a) | |
Investment Income: | | | | | | | | |
Interest income | | $ | 9,507,487 | | | $ | 28,334 | |
Dividend income - affiliated | | | 53,001 | | | | 3,530 | |
| | | | | | | | |
Total Investment Income | | | 9,560,488 | | | | 31,864 | |
| | | | | | | | |
Expenses: | | | | | | | | |
Investment advisory fees | | | 1,550,434 | | | | 4,870 | |
Distribution fees–Class A | | | 30,773 | | | | — | |
Accounting fees | | | 83,780 | | | | 15,590 | |
Audit fees | | | 25,971 | | | | 14,406 | |
Custodian fees | | | 20,715 | | | | 5,220 | |
Insurance fees | | | 4,239 | | | | — | |
Legal fees | | | 20,560 | | | | 988 | |
Registrations and filing fees | | | 24,623 | | | | 1,185 | |
Shareholder reports | | | 14,917 | | | | 1,411 | |
Transfer agent fees–Class A | | | 25,877 | | | | — | |
Transfer agent fees–Class I | | | 54,076 | | | | 2,032 | |
Transfer agent fees–Class R6 | | | — | | | | 1,016 | |
Trustees’ fees and expenses | | | 22,473 | | | | 254 | |
Interest expense | | | 212,191 | | | | — | |
Tax expense | | | 1,875 | | | | 1,369 | |
Offering fees | | | — | | | | 11,804 | |
Other fees | | | 5,944 | | | | 1,009 | |
| | | | | | | | |
Total expenses before fee waiver/reimbursement | | | 2,098,448 | | | | 61,154 | |
Expenses waived/reimbursed by: | | | | | | | | |
Advisor | | | (16,724 | ) | | | (55,239 | ) |
| | | | | | | | |
Net expenses | | | 2,081,724 | | | | 5,915 | |
| | | | | | | | |
Net Investment Income | | | 7,478,764 | | | | 25,949 | |
| | | | | | | | |
Realized/Unrealized Gains/(Losses): | | | | | | | | |
Net realized gains/(losses) on: | | | | | | | | |
Investment transactions | | | (1,612,266 | ) | | | (74,885 | ) |
Futures contracts | | | (1,075,841 | ) | | | — | |
| | | | | | | | |
Net realized losses | | | (2,688,107 | ) | | | (74,885 | ) |
| | | | | | | | |
Net change in unrealized appreciation/ (depreciation) on: | | | | | | | | |
Investments | | | (14,598,443 | ) | | | (38,697 | ) |
Futures contracts | | | 130,625 | | | | — | |
| | | | | | | | |
Net unrealized losses | | | (14,467,818 | ) | | | (38,697 | ) |
| | | | | | | | |
Net realized/unrealized losses | | | (17,155,925 | ) | | | (113,582 | ) |
| | | | | | | | |
Change in net assets resulting from operations | | $ | (9,677,161 | ) | | $ | (87,633 | ) |
| | | | | | | | |
(a) | For the period from December 18, 2017 . (commencement of operations) to March 31, 2018. |
See Notes to the Financial Statements.
33
Statements of Changes in Net Assets
| | | | | | | | |
| | Access Capital Community Investment Fund | |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | | For the Year Ended September 30, 2017 | |
From Investment Activities | | | | | | | | |
Operations: | | | | | | | | |
Net investment income | | $ | 7,478,764 | | | $ | 14,637,670 | |
Net realized gains/(losses) from investments and futures contracts | | | (2,688,107 | ) | | | 2,886,282 | |
Net change in unrealized depreciation on investments and futures contracts | | | (14,467,818 | ) | | | (15,941,954 | ) |
| | | | | | | | |
Change in net assets resulting from operations | | | (9,677,161 | ) | | | 1,581,988 | |
| | | | | | | | |
Distributions to Class A Shareholders: | | | | | | | | |
From net investment income | | | (283,509 | ) | | | (545,493 | ) |
Distributions to Class I Shareholders: | | | | | | | | |
From net investment income | | | (7,928,515 | ) | | | (16,290,496 | ) |
| | | | | | | | |
Change in net assets resulting from shareholder distributions | | | (8,212,024 | ) | | | (16,835,989 | ) |
| | | | | | | | |
Capital Transactions: | | | | | | | | |
Proceeds from shares issued | | | 113,054,031 | | | | 131,118,785 | |
Distributions reinvested | | | 4,220,376 | | | | 10,003,466 | |
Cost of shares redeemed | | | (123,711,122 | ) | | | (82,132,507 | ) |
| | | | | | | | |
Change in net assets resulting from capital transactions | | | (6,436,715 | ) | | | 58,989,744 | |
| | | | | | | | |
Net increase/(decrease) in net assets | | | (24,325,900 | ) | | | 43,735,743 | |
Net Assets: | | | | | | | | |
Beginning of period | | | 643,895,941 | | | | 600,160,198 | |
| | | | | | | | |
End of period | | $ | 619,570,041 | | | $ | 643,895,941 | |
| | | | | | | | |
Distributions in excess of net investment income | | $ | (2,055,666 | ) | | $ | (1,322,406 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Issued | | | 12,683,832 | | | | 14,520,336 | |
Reinvested | | | 475,710 | | | | 1,106,067 | |
Redeemed | | | (13,890,661 | ) | | | (9,086,004 | ) |
| | | | | | | | |
Change in shares resulting from capital transactions | | | (731,119 | ) | | | 6,540,399 | |
| | | | | | | | |
See Notes to the Financial Statements.
34
Statements of Changes in Net Assets
| | | | |
| | RBC Impact Bond Fund | |
| | For the Period Ended March 31, 2018(a) (Unaudited) | |
From Investment Activities | | | | |
Operations: | | | | |
Net investment income | | $ | 25,949 | |
Net realized losses from investments | | | (74,885 | ) |
Net change in unrealized depreciation on investments | | | (38,697 | ) |
| | | | |
Change in net assets resulting from operations | | | (87,633 | ) |
| | | | |
Distributions to Class I Shareholders: | | | | |
From net investment income | | | (12,970 | ) |
Distributions to Class R6 Shareholders: | | | | |
From net investment income | | | (13,234 | ) |
| | | | |
Change in net assets resulting from shareholder distributions | | | (26,204 | ) |
| | | | |
Capital Transactions: | | | | |
Proceeds from shares issued | | | 5,123,000 | |
Distributions reinvested | | | 26,203 | |
Cost of shares redeemed | | | (9 | ) |
| | | | |
Change in net assets resulting from capital transactions | | | 5,149,194 | |
| | | | |
Net increase in net assets | | | 5,035,357 | |
Net Assets: | | | | |
Beginning of period | | | — | |
| | | | |
End of period | | $ | 5,035,357 | |
| | | | |
Distributions in excess of net investment income | | $ | (255 | ) |
| | | | |
Share Transactions: | | | | |
Issued | | | 512,655 | |
Reinvested | | | 2,677 | |
Redeemed | | | (1 | ) |
| | | | |
Change in shares resulting from capital transactions | | | 515,331 | |
| | | | |
(a)For the period from December 18, 2017 (commencement of operations) to March 31, 2018.
See Notes to the Financial Statements.
35
| | |
Access Capital Community Investment Fund | | (Selected data for a share outstanding throughout the periods indicated) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
| | | | Investment Activities | | Distributions | | |
| | Net Asset Value, Beginning of Period | | Net Investment Income(a) | | Net Realized and Unrealized Gains (Losses) on Investments | | Total from Investment Activities | | Net Investment Income | | Total Distributions | | Net Asset Value, End of Period |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | $ | 9.02 | | | | | 0.09 | | | | | (0.24 | ) | | | | (0.15 | ) | | | | (0.10 | ) | | | | (0.10 | ) | | | $ | 8.77 | |
Year Ended 9/30/17 | | | | 9.26 | | | | | 0.18 | | | | | (0.20 | ) | | | | (0.02 | ) | | | | (0.22 | ) | | | | (0.22 | ) | | | | 9.02 | |
Year Ended 9/30/16 | | | | 9.25 | | | | | 0.22 | | | | | 0.03 | | | | | 0.25 | | | | | (0.24 | ) | | | | (0.24 | ) | | | | 9.26 | |
Year Ended 9/30/15 | | | | 9.27 | | | | | 0.24 | | | | | 0.01 | | | | | 0.25 | | | | | (0.27 | ) | | | | (0.27 | ) | | | | 9.25 | |
Year Ended 9/30/14 | | | | 9.28 | | | | | 0.27 | | | | | 0.02 | | | | | 0.29 | | | | | (0.30 | ) | | | | (0.30 | ) | | | | 9.27 | |
Year Ended 9/30/13 | | | | 9.77 | | | | | 0.28 | | | | | (0.46 | ) | | | | (0.18 | ) | | | | (0.31 | ) | | | | (0.31 | ) | | | | 9.28 | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | $ | 9.02 | | | | | 0.11 | | | | | (0.24 | ) | | | | (0.13 | ) | | | | (0.12 | ) | | | | (0.12 | ) | | | $ | 8.77 | |
Year Ended 9/30/17 | | | | 9.25 | | | | | 0.21 | | | | | (0.19 | ) | | | | 0.02 | | | | | (0.25 | ) | | | | (0.25 | ) | | | | 9.02 | |
Year Ended 9/30/16 | | | | 9.24 | | | | | 0.25 | | | | | 0.03 | | | | | 0.28 | | | | | (0.27 | ) | | | | (0.27 | ) | | | | 9.25 | |
Year Ended 9/30/15 | | | | 9.26 | | | | | 0.27 | | | | | 0.01 | | | | | 0.28 | | | | | (0.30 | ) | | | | (0.30 | ) | | | | 9.24 | |
Year Ended 9/30/14 | | | | 9.27 | | | | | 0.31 | | | | | 0.01 | | | | | 0.32 | | | | | (0.33 | ) | | | | (0.33 | ) | | | | 9.26 | |
Year Ended 9/30/13 | | | | 9.76 | | | | | 0.31 | | | | | (0.46 | ) | | | | (0.15 | ) | | | | (0.34 | ) | | | | (0.34 | ) | | | | 9.27 | |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
36
| | |
Access Capital Community Investment Fund | | (Selected data for a share outstanding throughout the periods indicated) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | | Ratios/Supplemental Data |
| | Total Return(a)(b) | | Net Assets, End of Period (000’s) | | Ratio of Net Expenses to Average Net Assets | | Ratio of Expenses to Average Net Assets After Fees Waived/ Reimbursed and Excluding Interest Expense | | Ratio of Net Investment Income (Loss) to Average Net Assets | | Ratio of Expenses to Average Net Assets* | | Portfolio Turnover Rate** |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | | (1.65 | )%(c) | | | $ | 23,083 | | | | | 1.02 | %(d) | | | | 0.95 | %(d) | | | | 2.07 | %(d) | | | | 1.10 | %(d) | | | | 13 | % |
Year Ended 9/30/17 | | | | (0.24 | )% | | | | 24,568 | | | | | 0.99 | % | | | | 0.95 | % | | | | 2.01 | % | | | | 1.09 | % | | | | 17 | % |
Year Ended 9/30/16 | | | | 2.74 | % | | | | 21,269 | | | | | 1.01 | % | | | | 0.95 | % | | | | 2.33 | % | | | | 1.10 | % | | | | 13 | % |
Year Ended 9/30/15 | | | | 2.69 | % | | | | 21,135 | | | | | 1.00 | % | | | | 0.95 | % | | | | 2.55 | % | | | | 1.06 | % | | | | 23 | % |
Year Ended 9/30/14 | | | | 3.26 | % | | | | 19,454 | | | | | 1.01 | % | | | | 0.95 | % | | | | 2.91 | % | | | | 1.06 | % | | | | 10 | % |
Year Ended 9/30/13 | | | | (1.92 | )% | | | | 14,869 | | | | | 0.99 | % | | | | 0.92 | % | | | | 2.99 | % | | | | 0.99 | % | | | | 23 | % |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | | (1.47 | )%(c) | | | $ | 596,487 | | | | | 0.66 | %(d) | | | | 0.59 | %(d) | | | | 2.43 | %(d) | | | | 0.66 | %(d) | | | | 13 | % |
Year Ended 9/30/17 | | | | 0.23 | % | | | | 619,328 | | | | | 0.63 | % | | | | 0.58 | % | | | | 2.38 | % | | | | 0.64 | % | | | | 17 | % |
Year Ended 9/30/16 | | | | 3.12 | % | | | | 578,891 | | | | | 0.64 | % | | | | 0.58 | % | | | | 2.67 | % | | | | 0.64 | % | | | | 13 | % |
Year Ended 9/30/15 | | | | 2.95 | % | | | | 511,106 | | | | | 0.63 | % | | | | 0.58 | % | | | | 2.91 | % | | | | 0.63 | % | | | | 23 | % |
Year Ended 9/30/14 | | | | 3.76 | % | | | | 478,605 | | | | | 0.65 | % | | | | 0.58 | % | | | | 3.34 | % | | | | 0.65 | % | | | | 10 | % |
Year Ended 9/30/13 | | | | (1.69 | )% | | | | 504,970 | | | | | 0.74 | % | | | | 0.67 | % | | | | 3.28 | % | | | | 0.74 | % | | | | 23 | % |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Excludes sales charge. |
(b) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
See Notes to the Financial Statements.
37
| | |
RBC Impact Bond Fund | | (Selected data for a share outstanding throughout the periods indicated) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Investment Activities | | Distributions | | |
| | Net Asset Value, Beginning of Period | | Net Investment Income(a) | | Net Realized and Unrealized Gains (Losses) on Investments | | Total from Investment Activities | | Net Investment Income | | Total Distributions | | Net Asset Value, End of Period |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended 3/31/18 (Unaudited)(b) | | | $ | 10.00 | | | | | 0.04 | | | | | (0.22 | ) | | | | (0.18 | ) | | | | (0.05 | ) | | | | (0.05 | ) | | | $ | 9.77 | |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended 3/31/18 (Unaudited)(b) | | | $ | 10.00 | | | | | 0.05 | | | | | (0.23 | ) | | | | (0.18 | ) | | | | (0.05 | ) | | | | (0.05 | ) | | | $ | 9.77 | |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(b) | For the period from December 18, 2017 (commencement of operations) to March 31, 2018. |
38
| | |
RBC Impact Bond Fund | | (Selected data for a share outstanding throughout the periods indicated) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Ratios/Supplemental Data |
| | Total Return(a)(b) | | Net Assets, End of Period (000’s) | | Ratio of Net Expenses to Average Net Assets | | Ratio of Expenses to Average Net Assets After Fees Waived/ Reimbursed and Excluding Interest Expense | | Ratio of Net Investment Income (Loss) to Average Net Assets | | Ratio of Expenses to Average Net Assets* | | Portfolio Turnover Rate** |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended 3/31/18 (Unaudited)(c) | | | | (1.79 | )%(d) | | | $ | 2,579 | | | | | 0.45 | %(e) | | | | 0.45 | %(e) | | | | 1.82 | %(e) | | | | 4.46 | %(e) | | | | 187 | % |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended 3/31/18 (Unaudited)(c) | | | | (1.78 | )%(d) | | | $ | 2,456 | | | | | 0.40 | %(e) | | | | 0.40 | %(e) | | | | 1.88 | %(e) | | | | 4.32 | %(e) | | | | 187 | % |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Excludes sales charge. |
(b) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
(c) | For the period from December 18, 2017 (commencement of operations) to March 31, 2018. |
See Notes to the Financial Statements.
39
|
NOTES TO FINANCIAL STATEMENTS |
March 31, 2018 (Unaudited)
1. Organization:
RBC Funds Trust (the “Trust”) is registered under the Investment Company Act of 1940 (as amended) as an open-end management investment company. The Trust was organized as a Delaware statutory trust on December 16, 2003 and currently consists of 18 portfolios. Overall responsibility for the management of the Trust is vested in its Board of Trustees (the “Board”). The predecessor fund for the Access Capital Community Investment Fund was reorganized into a series of the Trust, effective July 28, 2008.This report includes the following two investment portfolios (each a “Fund” and collectively, the “Funds”):
- Access Capital Community Investment Fund
- RBC Impact Bond Fund (“Impact Bond Fund”)
The Funds offer two share classes: The Access Capital Community Investment Fund offers Class A and Class I shares. The Impact Bond Fund offers Class I and Class R6 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 and Class R6 shares (intended for investors meeting certain investment minimum thresholds) are not subject to either a front-end sales charge or a CDSC.
RBC Global Asset Management (U.S.) Inc. (“RBC GAM (US)” or “Advisor” or “Co-Administrator”) acts as the investment advisor for the Fund. The officers of the Trust (“Fund Management”) are also employees of RBC GAM (US) or its affiliates.
2. Significant Accounting Policies
Each Fund is an investment company that follows accounting and reporting guidance under the Financial Accounting Standards Board. Summarized below are the significant accounting policies of the Funds. These policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). Fund Management follows these policies when preparing financial statements. Fund Management may also be required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The financial statements are as of the close of regular trading on the New York Stock Exchange (“NYSE”).
In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in the ASU shorten the amortization period for certain callable debt securities, held at a premium, to be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount; which continues to be amortized to maturity. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management is currently evaluating the impact, if any, of applying this provision.
Security Valuation:
The Board has adopted pricing and valuation procedures for determining the fair value of each Fund’s investments. Fair value of a security is considered to be the price that a fund might reasonably expect to receive upon its current sale in an orderly transaction between market participants.
Fixed income securities, including to-be-announced (“TBA”) commitments and municipal bonds, are generally valued based on evaluated prices received from third-party pricing services or from broker-dealers who make markets in the securities and are generally categorized as Level 2 in the fair value hierarchy (see “Fair Value Measurements” below for additional information). The pricing services utilize both dealer-supplied valuations and electronic data processing techniques that take into account multiple appropriate factors such as institutional-size trading in similar groups of securities, market spreads, interest rates, and fundamental security analytical data including yield, quality, coupon rate, maturity and type of issue.
40
|
NOTES TO FINANCIAL STATEMENTS |
Mortgage-related securities represent direct or indirect participation in, or are secured by and payable from, mortgage loans secured by real property and include pass-through securities and collateralized mortgage obligations. These securities may be issued or guaranteed by U.S. Government agencies or instrumentalities, or private issuers, including commercial banks, savings and loan institutions, private mortgage insurance bankers and other secondary market issuers. These mortgage-related securities are generally valued by pricing services that use broker-dealer quotations or valuation estimates from their internal pricing models. These pricing models generally consider such factors as current market data, estimated cash flows, market-based yield spreads, and estimated prepayment rates. Securities valued using such techniques and inputs are generally categorized as Level 2 in the fair value hierarchy. To the extent significant inputs are unobservable, the securities will be categorized as Level 3.
Exchange-traded futures are valued at the last sale price at the close of the market on the principal exchange on which they are traded and are categorized as Level 1 in the fair value hierarchy. Investments in open-end investment companies (mutual funds) are valued at net asset value and are categorized as Level 1 in the fair value hierarchy.
The Board has delegated to the Funds’ Pricing Committee (“Pricing Committee”) the responsibility for implementing the pricing and valuation procedures, including responsibility for determining the fair value of the Funds’ securities or other assets and liabilities. The Pricing Committee includes representatives of the Funds’ Advisor, and Co-Administrator, including personnel from accounting and operations, investment management, trading, risk management, compliance and legal. The Pricing Committee meets at least quarterly to review and approve Fund valuation matters, including a review of the Funds’ pricing activity and operations, fair value measurements, pricing vendors, policies and procedures, and related controls. At least a quorum of the Pricing Committee shall meet more frequently, as needed, to consider and approve time-sensitive fair valuation matters. The Pricing Committee reports to the Valuation, Portfolio Management and Performance Committee (“Valuation Committee”) of the Board. Members of the Pricing Committee meet with the Valuation Committee and the Board at each of their regularly scheduled meetings to discuss valuation matters and actions taken during the period.
The Board has adopted procedures to determine the fair value of a security when a price is not available from a pricing service or broker- dealer or Fund Management determines that a price provided by a pricing service or broker-dealer does not approximate fair value. Fair valuation may also be used when a significant valuation event affecting the value of a security or market sector is determined to have occurred between the time when a security’s market closes and the time the Fund’s net asset value is calculated. The fair value of the security will be determined in good faith by the Pricing Committee in accordance with procedures and methodologies adopted by the Board. General factors used in determining the fair value of securities include, but are not limited to, fundamental analytical data relating to the security, the issuer and the market, such as duration, prepayment and default rates; general level of interest rates and changes in interest rates; information from broker-dealers; trading in similar securities; any restrictions on disposition of the security; and an evaluation of the forces that influence the market in which the investments are traded. These securities are either categorized as Level 2 or 3 in the fair value hierarchy, depending on the relevant inputs used.
When the Funds utilize fair valuation methods that use significant unobservable inputs to determine a security’s value, such securities will be categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. While the Funds’ policy is intended to result in a calculation of a Fund’s net asset value that fairly reflects security values as of the time of pricing, the Funds cannot guarantee that values determined by the Board or persons acting at their direction would accurately reflect the price that the Funds could obtain for a security if they were to dispose of it as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Funds may differ from the value that would be realized if the securities were sold.
The Funds’ Pricing Committee employs various methods for calibrating the valuation approach related to securities categorized within Level 2 and Level 3 of the fair value hierarchy. These methods may include regular due diligence of the Funds’ pricing vendors, a regular review of key inputs and assumptions, transaction back-testing or disposition analysis to compare unrealized gains and losses to
41
|
NOTES TO FINANCIAL STATEMENTS |
realized gains and losses, reviews of missing and stale prices and large movements in market value, and reviews of any market related activities. Additionally, the pricing of all fair value holdings is subsequently reported to the Valuation Committee and Board.
Fair Value Measurements:
The Funds disclose the fair value of their investments in a hierarchy that categorizes investments based on the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows:
• Level 1 - Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access at the measurement date.
• Level 2 - Significant inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active. Observable inputs may include quoted prices for similar securities, interest rates, spreads, prepayment spreads, etc.
• Level 3 - Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those securities.
Inputs used in determining fair value of an investment may include, but are not limited to, price information, volatility statistics, credit and market data, and other factors, all of which may be either observable or unobservable. Inputs can vary among investments and will be impacted by the investment type and volume of activity for the particular security or similar securities in the market. Investments in the Level 3 category are generally supported by transactions and quoted prices from dealers participating in the market for those investments. Investments may be included in the Level 3 category due to a lack of market activity or transparency. Internal valuation models may also be used as a pricing source for Level 3 investments. Internal valuation models may rely on one or more unobservable inputs, such as estimated cash flows, financial statement analysis and discount rates.
The summary of inputs used to determine the fair value of the Funds’ investments as of March 31, 2018 is as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Level 1 Quoted Prices | | Level 2 Significant Observable Inputs | | Level 3 Significant Unobservable Inputs | | Total |
Access Capital Community Investment Fund Assets: | | | | | | | | | | | | | | | | | | | | |
Investments in Securities | | | | | | | | | | | | | | | | | | | | |
Municipal Bonds | | | $ | — | | | | $ | 24,939,045 | | | | $ | — | | | | $ | 24,939,045 | |
U.S. Government Agency Backed Mortgages | | | | — | | | | | 584,423,650 | | | | | — | | | | | 584,423,650 | |
U.S. Government Agency Obligations | | | | — | | | | | 33,186,324 | | | | | 144,609 | | | | | 33,330,933 | |
Investment Company | | | | 6,654,320 | | | | | — | | | | | — | | | | | 6,654,320 | |
Corporate Bonds | | | | — | | | | | 411,935 | | | | | — | | | | | 411,935 | |
Other Financial Instruments* | | | | | | | | | | | | | | | | | | | | |
Financial futures contracts | | | | 83,125 | | | | | — | | | | | — | | | | | 83,125 | |
| | | | | | | | | | | | | | | | | | | | |
Total Assets | | | $ | 6,737,445 | | | | $ | 642,960,954 | | | | $ | 144,609 | | | | $ | 649,843,008 | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments* | | | | | | | | | | | | | | | | | | | | |
Reverse Repurchase Agreement | | | $ | — | | | | $ | 34,609,000 | | | | $ | — | | | | $ | 34,609,000 | |
| | | | | | | | | | | | | | | | | | | | |
42
|
NOTES TO FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impact Bond Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in Securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Municipal Bonds | | $ | — | | | | | | | $ | 638,825 | | | | | | | $ | — | | | | | | | $ | 638,825 | |
U.S. Government Agency Backed Mortgages | | | — | | | | | | | | 2,708,708 | | | | | | | | — | | | | | | | | 2,708,708 | |
U.S. Treasury Obligations | | | — | | | | | | | | 1,960,661 | | | | | | | | — | | | | | | | | 1,960,661 | |
U.S. Government Agency Obligations | | | — | | | | | | | | 322,378 | | | | | | | | — | | | | | | | | 322,378 | |
Asset Backed Securities | | | — | | | | | | | | 99,731 | | | | | | | | — | | | | | | | | 99,731 | |
Investment Company | | | 561,386 | | | | | | | | — | | | | | | | | — | | | | | | | | 561,386 | |
Corporate Bonds | | | — | | | | | | | | 99,178 | | | | | | | | — | | | | | | | | 99,178 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Assets | | $ | 561,386 | | | | | | | $ | 5,829,481 | | | | | | | $ | — | | | | | | | $ | 6,390,867 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
*Other financial instruments are futures contracts which are reflected in the Schedule of Portfolio Investments and are shown at the unrealized appreciation/(depreciation) on the contracts and reverse repurchase agreements which are reflected in the Schedule of Portfolio Investments and shown in the Statement of Assets and Liabilities at their par value plus accrued interest.
During the period ended March 31, 2018, the Funds recognized no transfers to/from Level 1 or 2. The Funds’ policy is to recognize transfers between Level 1, Level 2 and Level 3 at the end of the year utilizing fair value at the beginning of the year.
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
| | | | |
| | Access Capital Community Investment Fund | |
| | U.S. Government Agency Obligations– (Small Business Administration) | |
Balance as of 9/30/17(value) | | | $ 164,880 | |
Change in unrealized appreciation (depreciation) | | | (20,271 | ) |
Balance as of 3/31/18(value) | | | $ 144,609 | |
The Access Capital Community Investment Fund’s assets assigned to the Level 3 category were valued using the valuation methodology and technique deemed most appropriate in the circumstances. The significant unobservable inputs used include assumptions regarding the particular security’s cash flow profile, prepayments and potential defaults which may not be generally observable for either the security or for assets of a similar type. Inputs with respect to variable rate securities may also include assumptions regarding future interest rate changes. Significant changes in any of these assumptions may result in a lower or higher fair value measurement.
| | | | | | | | | | | | | | | | | | | | | | |
Quantitative Information about Level 3 Fair Value Measurements |
| | | | | Fair Value at March 31, 2018 | | | | | | Valuation Technique(s) | | | | Unobservable Input | | | | Range (Weighted Average) |
U.S. Government Agency Obligations (Small Business Administration) | | | | | | | $144,609 | | | | | | | Discounted Cash Flow | | | | Yield (Discount Rate of Cash Flows) Constant Default Rate Amortization Rate | | | | 4.59%-5.28%(4.99%)
0.00%(0.00%) 0.0036-0.0039(0.0037) |
43
|
NOTES TO FINANCIAL STATEMENTS |
Financial Instruments:
Reverse Repurchase Agreements:
To obtain short-term financing, the Access Capital Community Investment Fund entered 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 broker-dealers, the Fund may also be required to deliver or deposit securities or cash as collateral. For the period ended March 31, 2018, the average amount borrowed was approximately $27,419,154 and the daily weighted average interest rate was 1.55%. Reverse repurchase agreements are shown on the Schedule of Portfolio Investments.
Reverse repurchase transactions are entered into by the Fund under Master Repurchase Agreements (“MRA”), which permit the Fund, under certain circumstances, including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund. With reverse repurchase transactions, typically the Fund and the counterparties are permitted to sell, repledge, or use the collateral associated with the transaction. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Pursuant to the terms of the MRA, the Fund receives or posts securities as collateral with a market value in excess of the repurchase price to be received or paid by the Fund upon the maturity of the transaction. Upon a bankruptcy or insolvency of the MRA counterparty, the Fund is considered an unsecured creditor with respect to excess collateral and, as such, the return of excess collateral may be delayed.
Details of open reverse repurchase agreements for the Access Capital Community Investment Fund at March 31, 2018 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Counterparty | | | | Reverse Repurchase Agreements | | | | Fair Value of Non-cash Collateral Pledged1 | | | | Cash Collateral Pledged | | | | Net Amount2 |
Citigroup Global Markets, Inc. | | | | | | | | $ | 21,030,000 | | | | | | | | | $ | (21,030,000 | ) | | | | | | | | $ | — | | | | | | | | | $ | — | |
Goldman Sachs | | | | | | | | | 13,579,000 | | | | | | | | | | (13,579,000 | ) | | | | | | | | | — | | | | | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | $ | 34,609,000 | | | | | | | | | $ | (34,609,000 | ) | | | | | | | | $ | — | | | | | | | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1Collateral with a value of $40,304,256 has been pledged in connection with open reverse repurchase agreements. Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.
2Net amount represents the net amount payable due to the counterparty in the event of default.
In the event the buyer of securities under a MRA files for bankruptcy or becomes insolvent, the Fund’s use of the proceeds of the agreement may be restricted while the other party, or its trustee or receiver, determines whether or not to enforce the Fund’s obligation to repurchase the securities.
TBA Commitments:
The Funds may enter into TBA commitments to purchase or sell securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased/sold declines/increases prior to settlement date, which is in addition to the risk of decline in the value of a Fund’s other assets. Unsettled TBA commitments are valued at the current value of the underlying securities, according to the procedures described under “Security Valuation”. As of March 31, 2018, the the Impact Bond Fund had outstanding TBA commitments.
Mortgage Backed Securities:
Because the Funds 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
44
|
NOTES TO FINANCIAL STATEMENTS |
funds that do not specialize in community development investments. These risks include credit and prepayment risk and 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 Access Capital Community Investment Fund invests in certain mortgage backed securities that qualify under the Community Reinvestment Act of 1977 (“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.
Derivatives:
The Funds may use derivative instruments, including futures, forwards, options, indexed securities, swaps and inverse securities as tools in the management of portfolio assets. The Funds may use such derivatives through either the creation of long or short positions to hedge various investments, for investment purposes, for risk management and/or to increase income or gain to the Funds. Derivatives allow the Funds to manage their risk exposure more quickly and efficiently than other types of instruments. Derivatives may be riskier than other types of investments and could result in losses that significantly exceed a Fund’s original investment. Derivatives are subject to the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index. The use of derivatives may not be successful, resulting in losses to a Fund, and the cost of such strategies may reduce the Fund’s returns.
Hedging also involves the risk that changes in the value of the derivative will not match those of the holdings being hedged as expected by the Funds, in which case any losses on the holdings being hedged may not be reduced and may be increased. There can be no assurance that a Fund’s hedging strategy will reduce risk or that hedging transactions will be available or cost effective. The Funds are subject to interest rate risk in the normal course of pursuing their investment objectives by investing in various derivative financial instruments, as described below. For open derivative instruments as of March 31, 2018, see the following section for financial futures contracts.
Financial Futures Contracts:
The Funds may enter into futures contracts in an effort to manage the duration of the portfolio and hedge against certain market risk. A futures contract on a securities index is an agreement obligating one party to pay, and entitling the other party to receive, during the term of the contract, cash payments based on the level of a specified securities index. Futures transactions involve brokerage costs and require a Fund to segregate assets to cover contracts that would require it to purchase securities or currencies. A Fund may lose the expected benefit of futures transactions if interest rates, exchange rates or securities prices change in an unanticipated manner. Such unanticipated changes may also result in lower overall performance than if a Fund had not entered into any futures transactions.
The Funds entered into U.S. Treasury bond futures and U.S. Treasury Notes futures during the period ended March 31, 2018.
Upon entering into a futures contract, a Fund is required to pledge to the broker an amount of cash, U.S. government securities, or other assets equal to a certain percentage of the contract amount. Subsequent payments are made or received by the Funds each day, depending on the daily fluctuations in the fair value of the underlying instrument. A Fund would record an unrealized gain or loss each day equal to these daily payments.
Open futures contracts are shown on the Schedules of Portfolio Investments. Underlying collateral pledged for open futures contracts is the cash at brokers for financial futures contracts shown on the Statements of Assets and Liabilities at March 31, 2018.
Fair Values of derivative instruments as of March 31, 2018 are as follows:
45
|
NOTES TO FINANCIAL STATEMENTS |
| | | | | | | | |
Fair Values of Derivative Financial Instrument as of March 31, 2018 | |
Statement of Assets and Liabilities Location | |
Asset Derivatives | |
| | Access Capital Community Investment Fund | | | Impact Bond Fund | |
Interest Rate Risk: | | | | | | | | |
Unrealized appreciation on futures contracts | | | $83,125 | | | | $— | |
| | |
Total | | | $83,125 | | | | $— | |
The effect of derivative instruments on the Statement of Operations during the period ended March 31, 2018 is as follows:
| | | | | | | | |
Derivative Instruments Categorized by Risk Exposure | | Access Capital Community Investment Fund | | | Impact Bond Fund | |
Net realized Gain/(Loss) From: | | | | | | | | |
Interest Rate Risk: | | | | | | | | |
Financial futures contracts | | | $(1,075,841 | ) | | | $— | |
| | |
Total | | | $(1,075,841 | ) | | | $— | |
| | |
Derivative Instruments Categorized by Risk Exposure | | Access Capital Community Investment Fund | | | Impact Bond Fund | |
Net Change in Unrealized Appreciation/(Depreciation) From: | | | | | | | | |
Interest Rate Risk: | | | | | | | | |
Financial futures contracts | | | $130,625 | | | | $— | |
| | |
Total | | | $130,625 | | | | $— | |
For the period ended March 31, 2018, the average volume of derivative activities based on ending quarterly outstanding amounts are as follows:
| | | | | | | | |
| | Access Capital Community Investment Fund | | | Impact Bond Fund | |
Futures long position (contracts) | | | 120 | | | | — | |
Counterparty Credit Risk:
Derivatives may also expose a Fund to counterparty risk (the risk that the derivative counterparty will not fulfill its contractual obligations). To the extent amounts due to the Funds from their counterparties are not fully collateralized contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. A Fund’s maximum risk of loss from counterparty credit risk on over-the-counter (“OTC”) derivatives is generally the aggregate unrealized gain in excess of any collateral pledged by the counterparty to the Funds.
With exchange-traded futures, the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency) of the clearing broker or clearinghouse. Additionally, credit risk exists in exchange-traded futures with respect
46
|
NOTES TO FINANCIAL STATEMENTS |
to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
Affiliated Investments:
The Funds invest in other Funds of the Trust (an “Affiliated Fund”). The Funds invest in U.S. Government Money Market Fund-RBC Institutional Class 1 as a cash sweep vehicle. The income earned by the Funds from the Affiliated Fund for the period is disclosed in the Statement of Operations. The table below details the transactions of the Funds in the Affiliated Fund.
| | | | | | | | | | | | | | | | | | | | |
| | Value September 30, 2017 | | | Purchases | | | Sales | | | Value March 31, 2018 | | | Dividends | |
Investments in U.S. Government Money Market Fund —RBC Institutional Class 1 | | | | | | | | | | | | | | | | | | | | |
Access Capital Community Investment Fund | | | $6,618,447 | | | | $190,030,657 | | | | $189,994,784 | | | | $6,654,320 | | | | $53,001 | |
Impact Bond Fund | | | — | | | | 2,862,305 | | | | 2,300,919 | | | | 561,386 | | | | 3,530 | |
Credit Enhancement:
Certain obligations held by the Funds have credit enhancement or liquidity features that may, under certain circumstances, provide for repayment of principal and interest on the obligation upon demand date, interest rate reset date or final maturity. These enhancements may include: letters of credit; liquidity guarantees; security purchase agreements; tender option purchase agreements and third party insurance.
Investment Transactions and Income:
Investment transactions are recorded on trade date. Dividend income is recorded on the ex-dividend date. Realized gains and losses from investment transactions are calculated based on the cost of the specific security (also known as identified cost basis). Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount using the effective yield method. Paydown gains and losses on mortgage- and asset-backed securities are included in the financial statements as interest income.
Expense, Investment Income and Gain/Loss Allocation:
Each Fund pays the expenses that are directly related to its operations, such as custodian fees or advisory fees. Expenses incurred by the Trust, such as trustee or legal fees, are allocated among each of the Funds in the Trust either proportionately based upon each Fund’s relative net assets or using another reasonable basis such as equally across all Funds in the Trust, depending on the nature of the expense. Individual share classes within a Fund are charged expenses specific to that class, such as distribution fees and transfer agent fees. Within a Fund, expenses other than class specific expenses are allocated daily to each class based upon the proportion of relative net assets. Investment income and realized and unrealized gains or losses are allocated to each class of shares based on relative net assets.
Distributions to Shareholders:
Each 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 to a redeeming shareholder 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
47
|
NOTES TO FINANCIAL STATEMENTS |
on federal income tax regulations, which may differ from US GAAP. These “book/tax” differences may be either temporary or permanent in nature. To the extent these differences are determined, as of the end of the tax year, to be permanent (e.g., reclassification of paydown gains and losses, and expiring capital loss carryforward), they are reclassified within a Fund’s capital account based on their federal tax basis treatment.
3. Agreements and Other Transactions with Affiliates:
The Trust has entered into an investment advisory agreement with RBC GAM (US) under which RBC GAM (US) manages each Funds’ assets and furnishes related office facilities, equipment, research and personnel. The agreement requires each Fund to pay RBC GAM (US) a monthly fee based upon average daily net assets. Under the terms of the agreement, RBC GAM (US) is entitled to receive fees based on a percentage of the average daily net assets of each of the Funds as follows:
| | | | |
| | Annual Rate | |
Access Capital Community Investment Fund | | | 0.50% | |
Impact Bond Fund | | | 0.35% | |
RBC GAM (US) has contractually agreed to waive fees and/or make payments in order to keep total operating expenses (excluding certain fees such as interest, taxes and acquired fund fees and expenses) of the Funds to the following levels pursuant to an expense limitation agreement.
| | | | | | | | | | | | |
| | Class A Annual Rate | | | Class I Annual Rate | | | Class R6 Annual Rate | |
Access Capital Community Investment Fund | | | 0.95% | | | | 0.70% | | | | N/A | |
Impact Bond Fund | | | N/A | | | | 0.45% | | | | 0.40% | |
This expense limitation agreement is in place until January 31, 2019 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 (3 years for Impact Bond Fund) 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.
As of March 31, 2018, the amounts subject to possible recoupment under the expense limitation agreement were:
| | | | | | | | | | | | |
| | FYE 9/30/17 | | | FYE 9/30/18 | | | Total | |
Access Capital Community Investment Fund | | | $11,441 | | | | $ 9,871 | | | | $21,312 | |
Impact Bond Fund | | | — | | | | 54,811 | | | | 54,811 | |
RBC GAM (US) may also voluntarily waive and/or reimburse operating expenses of any Fund from time to time. Any such voluntary program may be changed or eliminated at any time without notice, and expenses waived under such programs are not subject to recoupment.
RBC GAM (US) voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Funds pay to RBC GAM(US) indirectly through its investment in an affiliated money market fund. For the six months ended March 31, 2018, the amount waived was $6,853 and $428 for Access Capital Community Investment Fund and Impact Bond Fund, respectively, and is included in expenses waived/reimbursed by Advisor in the Statement of Operations.
RBC GAM (US) serves as co-administrator to the Funds. BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”) serves as co-administrator and fund accounting agent. Services provided under the administrative services contract include providing day-to-day administration of matters related to the Funds, maintenance of their records and the preparation of reports. Under the terms of the administrative services contract, RBC GAM (US) does not receive a fee for its role as co-administrator. BNY Mellon receives a fee for its services payable by each Fund based in part on each Fund’s average net assets. BNY Mellon’s fee is included with “Accounting fees” in the Statement of Operation.
48
|
NOTES TO FINANCIAL STATEMENTS |
Certain Officers and Trustees of the Trust are affiliated with the Advisor. Such Officers and Trustees receive no compensation from the Funds for serving their respective roles.
The Trust currently pays each of the independent Trustees (Trustees of the Trust who are not directors, officers or employees of the Advisor, either Co-Administrator or Distributor) an annual retainer of $54,000 ($49,000 prior to October 1, 2017). The Board Chairperson and Audit Committee Chairperson each receive an additional retainer of $2,500 annually, and all other trustees serving as Chair of a Board committee each receive an additional retainer of $1,000 annually. In addition, Independent Trustees receive a quarterly meeting fee of $6,500 for each in-person Board meeting attended, a meeting fee of $1,500 for each telephonic or Special Board meeting attended, a $1,500 fee for each Board committee meeting attended, and are reimbursed for all out-of -pocket expenses relating to attendance at such meetings. These amounts are included in the Statements of Operations in “Trustee’ fees”.
In conjunction with the launch of the Impact Bond Fund, the Advisor invested seed capital in the Fund to provide the Fund with its initial investment assets. The table below shows, as of March 31, 2018, the Fund’s net assets, the shares (if any) of the Fund held by the Advisor, and the percent of total net assets represented by the Advisor’s investment.
| | | | | | | | | | | | |
| | Net Assets | | | Shares held by Advisor | | | % of Fund Net Assets | |
Impact Bond Fund | | $ | 5,035,357 | | | | 501,712 | | | | 97.3% | |
4. Fund Distribution:
Each of the Funds that offers Class A shares has adopted a Master Distribution 12b-1 Plan (the “Plan”) in which Quasar Distributors LLC (the “Distributor”) acts as the Funds’ distributor. The Plan permits each Fund to make payments for, or to reimburse the Distributor for, distribution-related costs and expenses of marketing shares of Class A covered under the Plan, and/or for providing shareholder services. The Plan does not apply to Class I and Class R6. The following chart shows the current Plan fee rate for Class A.
| | | | |
| | Class A | |
12b-1 Plan Fee | | | 0.25%* | |
* Under the 12b-1 plan, the maximum fee rate for Class A shares is 0.50%. Currently the Board has approved an annual limit of 0.25%.
Plan fees are based on average daily net assets of Class A. Up to 0.25% of each Plan fee may be designated as a service fee, as defined by the applicable rules of the Financial Industry Regulatory Authority. The Distributor, subject to applicable legal requirements, may waive the Plan fee voluntarily, in whole or in part. For the period ended March 31, 2018, 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 period ended March 31, 2018 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. | |
Access Capital Community Investment Fund | | | $ 2,752,698 | | | | $12,406,468 | | | | $103,780,943 | | | | $73,757,885 | |
Impact Bond Fund | | | 14,200,215 | | | | 8,258,363 | | | | — | | | | — | |
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 for Access Capital Community Investment Fund and an unlimited number of
49
|
NOTES TO FINANCIAL STATEMENTS |
shares of beneficial interest without par value for Impact Bond Fund. Transactions in capital stock of the Funds are summarized on the following pages:
| | | | | | | | | | | | | | | | |
| | Access Capital Community Investment Fund | | | | | | Impact Bond Fund | |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | | For the Year Ended September 30, 2017 | | | | | | For the Period Ended March 31, 2018 (Unaudited)(a) | |
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 6,142,483 | | | $ | 8,626,271 | | | | | | | $ | — | |
Distributions reinvested | | | 269,727 | | | | 525,759 | | | | | | | | — | |
Cost of shares redeemed | | | (7,187,874 | ) | | | (5,303,511 | ) | | | | | | | — | |
| | | | | | | | | | | | | | | | |
Change in Class A | | $ | (775,664 | ) | | $ | 3,848,519 | | | | | | | $ | — | |
| | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 106,911,548 | | | $ | 122,492,514 | | | | | | | $ | 2,623,000 | |
Distributions reinvested | | | 3,950,649 | | | | 9,477,707 | | | | | | | | 12,969 | |
Cost of shares redeemed | | | (116,523,248 | ) | | | (76,828,996 | ) | | | | | | | (9 | ) |
| | | | | | | | | | | | | | | | |
Change in Class I | | $ | (5,661,051 | ) | | $ | 55,141,225 | | | | | | | $ | 2,635,960 | |
| | | | | | | | | | | | | | | | |
Class R6 | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | — | | | $ | — | | | | | | | $ | 2,500,000 | |
Distributions reinvested | | | — | | | | — | | | | | | | | 13,234 | |
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Change in Class R6 | | $ | — | | | $ | — | | | | | | | $ | 2,513,234 | |
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Change in net assets resulting from capital transactions | | $ | (6,436,715 | ) | | $ | 58,989,744 | | | | | | | $ | 5,149,194 | |
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SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Issued | | | 694,217 | | | | 952,608 | | | | | | | | — | |
Reinvested | | | 30,402 | | | | 58,111 | | | | | | | | — | |
Redeemed | | | (815,709 | ) | | | (585,129 | ) | | | | | | | — | |
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Change in Class A | | | (91,090 | ) | | | 425,590 | | | | | | | | — | |
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Class I | | | | | | | | | | | | | | | | |
Issued | | | 11,989,615 | | | | 13,567,728 | | | | | | | | 262,655 | |
Reinvested | | | 445,308 | | | | 1,047,956 | | | | | | | | 1,325 | |
Redeemed | | | (13,074,952 | ) | | | (8,500,875 | ) | | | | | | | (1 | ) |
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Change in Class I | | | (640,029 | ) | | | 6,114,809 | | | | | | | | 263,979 | |
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Class R6 | | | | | | | | | | | | | | | | |
Issued | | | — | | | | — | | | | | | | | 250,000 | |
Reinvested | | | — | | | | — | | | | | | | | 1,352 | |
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Change in Class R6 | | | — | | | | — | | | | | | | | 251,352 | |
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Change in shares resulting from capital transactions | | | (731,119 | ) | | | 6,540,399 | | | | | | | | 515,331 | |
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(a)For the period from December 18, 2017 (commencement of operations) to March 31, 2018.
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NOTES TO FINANCIAL STATEMENTS |
7. Federal Income Taxes:
It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined under Subchapter M of the Internal Revenue Code, and to distribute substantially all of its net investment income and net realized capital gains. Therefore, no federal tax liability is recorded in the financial statements of each Fund.
Fund Management has analyzed the Fund’s tax positions taken or expected to be taken on federal income tax returns for all open tax years (the tax years ended September 30 of the years 2014, 2015, 2016 and 2017 for Access Capital Community Investment Fund) 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.
As of March 31, 2018, the tax cost of securities and the breakdown of unrealized appreciation (depreciation) for each Fund was as follows:
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| | Tax Cost Of Securities | | | Unrealized Appreciation | | | Unrealized Depreciation | | | Net Unrealized Appreciation/ (Depreciation) | |
Access Capital Community Investment Fund | | $ | 658,927,951 | | | $ | 6,829,939 | | | $ | (15,998,007 | ) | | $ | (9,168,068 | ) |
Impact Bond Fund | | | 6,429,564 | | | | 11,365 | | | | (50,062 | ) | | | (38,697 | ) |
The difference between book basis and tax basis unrealized appreciation/depreciation is attributable primarily to the tax mark-to-market of derivatives.
The tax character of distributions during the year ended September 30, 2017 were as follows:
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| | Distributions Paid From | |
| | Ordinary Income | | | Total Taxable Distributions | | | Total Distributions Paid | |
Access Capital Community Investment Fund | | $ | 17,002,469 | | | $ | 17,002,469 | | | $ | 17,002,469 | |
The tax basis of components of accumulated earnings/(losses) and tax character of distributions are determined at fiscal year end, and will be included in the Annual Report dated September 30, 2018.
As of September 30, 2017, the Access Capital Community Investment Fund had capital loss carryforwards for federal income tax purposes as follows:
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| | Capital Loss Carryforward | | | Expires | |
Access Capital Community Investment Fund | | $ | 11,587,282 | | | | 2018 | |
| | $ | 4,011,206 | | | | 2019 | |
As of September 30, 2017, the Access Capital Community Investment Fund had a short-term capital loss carryforward of $9,227,405 and a long-term capital loss carryforward of $11,063,537 available to offset future realized capital gains in accordance with the Regulated Investment Company Modernization Act of 2010. These capital loss carryforwards are not subject to expiration and must first be utilized to offset future realized gains of the same character and must be utilized prior to the utilization of the loss carryforwards subject to expiration that are described above.
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
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NOTES TO FINANCIAL STATEMENTS |
Access Capital Community Investment Fund did not have any deferred qualified late-year capital losses which will be treated as arising on the first business day of the fiscal year ending September 30, 2018.
8. Subsequent Events:
Fund Management has evaluated the impact of all subsequent events on the Funds and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.
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SHARE CLASS INFORMATION (UNAUDITED) |
The Funds offer Class A, Class I and Class R6 shares.
Class A
Class A shares of Access Capital Community Investment Fund 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.
Class R6
Class R6 shares are available in Impact Bond Fund. 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.
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SUPPLEMENTAL INFORMATION (UNAUDITED) |
Shareholder Expense Examples
As a shareholder of the the RBC Funds, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the RBC Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2017 through March 31, 2018.
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.
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| | | | Beginning Account Value 10/1/17 | | | Ending Account Value 3/31/18 | | | Expenses Paid During Period* 10/1/17–3/31/18 | | | Annualized Expense Ratio During Period 10/1/17–3/31/18 | |
Access Capital Community Investment Fund | | | | | | | | | | | | | | | | |
| | Class A | | | $1,000.00 | | | | $983.50 | | | | $5.04 | | | | 1.02 | % |
| | Class I | | | 1,000.00 | | | | 985.30 | | | | 3.27 | | | | 0.66 | % |
Impact Bond Fund** | | | | | | | | | | | | | | | | |
| | Class I | | | 1,000.00 | | | | 982.10 | | | | 1.26 | | | | 0.45 | % |
| | Class R6 | | | 1,000.00 | | | | 982.20 | | | | 1.12 | | | | 0.40 | % |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 182/365 (to reflect one half year period).
**Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 103/365 (to reflect December 18, 2017 (commencement of operations) through March 31, 2018).
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SUPPLEMENTAL INFORMATION (UNAUDITED) |
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on each RBC Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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| | | | Beginning Account Value 10/1/17 | | | Ending Account Value 3/31/18 | | | Expenses Paid During Period* 10/1/17-3/31/18 | | | Annualized Expense Ratio During Period 10/1/17-3/31/18 | |
Access Capital Community Investment Fund | | | | | | | | | | | | | | | | |
| | Class A | | | $1,000.00 | | | | $1,019.85 | | | | $5.14 | | | | 0.95 | % |
| | Class I | | | 1,000.00 | | | | 1,021.64 | | | | 3.33 | | | | 0.59 | % |
Impact Bond Fund** | | | | | | | | | | | | | | | | |
| | Class I | | | 1,000.00 | | | | 1,012.84 | | | | 1.28 | | | | 0.45 | % |
| | Class R6 | | | 1,000.00 | | | | 1,012.98 | | | | 1.14 | | | | 0.40 | % |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 182/365 (to reflect one half year period).
**Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 103/365 (to reflect December 18, 2017 (commencement of operations) through March 31, 2018).
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APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED) |
Information Regarding the Approval of Investment Advisory Agreement
This section provides information regarding the approval of the investment advisory agreement for the RBC Impact Bond Fund (the “Fund”), which commenced operations on December 18, 2017. RBC Global Asset Management (U.S.) Inc. (the “Advisor”) serves as investment advisor for the Fund.
The Board of Trustees of RBC Funds Trust (the “Trust”) created the Fund following a 2017 strategic review of the RBC Funds family in order to respond to market demand and provide investors with access to the Advisor’s fixed income and impact investing capabilities. During meetings in August, September and December of 2017, the Board met with representatives from the Advisor’s senior management team and investment team to discuss relevant information regarding the Fund and the proposed management of the Fund by the Advisor. In addition to considering information specifically requested and presented in connection with the meetings regarding the capabilities of the Advisor and its planned management of the Fund, the Trustees also considered information presented in connection with renewals of investment advisory agreements for other RBC Funds managed by the same investment team, as well as information provided at regular quarterly Board and Committee meetings throughout the year. In connection with their deliberations, the independent Trustees were advised by independent legal counsel with regard to the information and materials considered, the Trustees’ responsibilities with regard to the information and materials, and the Trustees’ responsibilities under relevant laws and regulations.
As part of their review of the advisory agreement, the independent Trustees requested and considered information regarding the advisory services to be performed for the Fund by the Advisor, the staffing and qualifications of the personnel responsible for operating and managing the Fund, and the relevant experience of the Advisor. The Trustees focused their consideration of the agreement on reviewing the nature, quality, and extent of the services to be provided under the agreement and the performance of the Advisor in managing products in a similar style to the Fund. In this regard, the Board considered the Advisor’s record in managing the Access Capital Community Investment Fund, its expertise with respect to fixed income and impact investing, and the performance record of a composite of accounts managed by the Advisor in a style similar to that of the Fund. The Trustees recognized the Advisor’s strong research and fundamental analysis capabilities, the supporting operational, regulatory and compliance capabilities, and expressed confidence in the capabilities and experience of the Advisor’s investment team.
The Trustees also reviewed information regarding the anticipated expense structure of the Fund, along with comparative information on the services to be rendered to, and fees to be paid by, the Fund. Although the Advisor indicated that it was premature to impose contractual advisory fee breakpoints, the Trustees noted that the Board and Advisor would evaluate fee and expense levels and breakpoints going forward as profitability and economy of scale information for the Fund is developed over time. The Trustees recognized that the management fee was below the median of competitor fund fees, and viewed favorably the Advisor’s agreement to contractually limit the annual expenses of the Fund through at least January 31, 2019. The Trustees concluded that the Fund’s advisory fee proposed to be payable to the Advisor was fair and reasonable in light of the level and quality of the services to be provided under all of the circumstances and was within the range of what might have been negotiated at arms’ length.
Based upon their review, the Trustees determined that they were satisfied with the nature, extent, and quality of the services expected to be provided by the Advisor and it is in the interest of the Fund and its shareholders for the Trustees to approve the Agreement with respect to the Fund. In arriving at their collective decision to approve 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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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 March 31, 2018.
NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
RBC Global Asset Management (U.S.) Inc. serves as investment advisor for the RBC Funds. RBC Funds are distributed by Quasar Distributors LLC.
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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-II SAR 03-18
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| | | | | | | | RBC Funds | |
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About your Semi Annual Report | | | | | | | | This semi-annual report (Unaudited) includes detailed information about your Fund including financial statements, performance, and a complete list of its holdings. | | | | |
| | | | | | | | The RBC Funds compare their performance against various indices. Each of these indices is a widely recognized measure of return for the underlying category of securities. However, the indices are unmanaged, do not include fees, and cannot be invested in directly. | | | | |
| | | | | | | | We hope the financial information presented will help you evaluate your investment in the RBC Funds. We also encourage you to read your Fund’s prospectus for further detail as to your Fund’s investment policies and risk profile. RBC Funds prospectuses and performance information subsequent to the date of this report are available on our website at www.rbcgam.us. | | | | |
| | | | | | | A description of the policies and procedures that your Fund uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1-800-422-2766; (ii) on the Fund’s website at www.rbcgam.us; and (iii) on the Securities and Exchange Commission’s (the “Commission”) website at http://www.sec.gov. | | | | |
| | | | | | | | 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 is 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 1-800-SEC-0330. | | | | |
Table of Contents | | | | | | | | Portfolio Managers | | | 1 | |
| | | | | | | Performance Summary | | | 4 | |
| | | | | | | | Fund Statistics | | | | |
| | | | | | | | - RBC Bluebay Emerging Market Debt Fund | | | 7 | |
| | | | | | | - RBC Bluebay High Yield Bond Fund | | | 8 | |
| | | | | | | | - RBC Bluebay Diversified Credit Fund | | | 9 | |
| | | | | | | | Schedule of Portfolio Investments | | | 10 | |
| | | | | | | | Financial Statements | | | | |
| | | | | | | | - Statements of Assets and Liabilities | | | 43 | |
| | | | | | | | - Statements of Operations | | | 45 | |
| | | | | | | | - Statements of Changes in Net Assets | | | 47 | |
| | | | | | | | Financial Highlights | | | 50 | |
| | | | | | | | Notes to Financial Statements | | | 57 | |
| | | | | | | | Share Class Information | | | 80 | |
| | | | | | | | Supplemental Information | | | 81 | |
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PORTFOLIO MANAGERS | | | | | | | | |
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RBC Global Asset Management (U.S.) Inc. (“RBC GAM (US)”) serves as the investment advisor and BlueBay Asset Management LLP (“BlueBay”) serves as an investment sub-advisor to each of the Funds and BlueBay Asset Management USA LLC (“BlueBay US”) serves as an investment sub-advisor for the RBC BlueBay High Yield Bond Fund and RBC BlueBay Diversified Credit Fund. The sub-advisors are responsible for the overall management of the Funds’ portfolios. The individuals primarily responsible for the day-to-day management of the Funds’ portfolios are set forth below. | | | | | | | | |
David Dowsett | | | | | | | | |
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Partner, Co-Chief Investment Officer & Co-Head of Emerging Market Debt | | | | | | | | |
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David Dowsett is Co-Chief Investment Officer of BlueBay and Co-Head of the Emerging Market Debt team at the firm and is responsible for portfolio management of the RBC BlueBay Emerging Market Debt Fund and RBC BlueBay Diversified Credit Fund. David joined BlueBay in April 2002. Previously he spent seven years at Deutsche Asset Management (formerly Morgan Grenfell Asset Management) where he was a Board Director with responsibility for emerging markets and a member of the Investment Policy Committee for all fixed income. David has a BA (Hons) degree in Politics and Economics from Durham University. | | | | | | | | |
Nick Shearn | | | | | | | | |
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Portfolio Manager | | | | | | | | |
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Nick Shearn is responsible for portfolio management of the RBC BlueBay Diversified Credit Fund. Nick joined BlueBay in June 2011 from The Royal Bank of Scotland, where he was Head of Local Markets Rates Trading for the CEEMEA region. Prior to this he spent ten years at Deutsche Bank in Johannesburg (1998-2002) and London (2002-2008) trading local markets products. Before trading emerging markets products, Nick focused on the Eurobond markets and was Head of Liquid Credit Trading at JP Morgan before joining DKB International as Head of Trading in 1995. He has a BSc Econ (Hons) from Queen Mary College, London University. | | | | | | | | |
Polina Kurdyavko | | | | | | | | |
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Partner, Senior Portfolio Manager | | | | | | | | |
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Polina Kurdyavko is Head of the Emerging Market Corporate Debt team at BlueBay and the lead portfolio manager for the BlueBay long only and alternative emerging market corporate bond portfolios, including the RBC BlueBay Emerging Market Debt Fund and RBC BlueBay Diversified Credit Fund. Polina joined BlueBay in July 2005 from UBS where she worked as a Credit Analyst in EMEA corporate research. Her role involved secondary coverage of CEEMEA issuers and research support for primary issuance of select corporates. Prior to this, Polina was with Alliance Capital where she started as an emerging markets equity analyst and then moved on to pioneer emerging markets quantitative research at Alliance. Polina holds an MSc (Hons) in Finance from the People’s Friendship University of Russia, Moscow and is a CFA charterholder. | | | | | | | | |
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| | | | | | | | PORTFOLIO MANAGERS | | |
| | | | | | | | Michael Reed | | |
| | | | | | | | Senior Portfolio Manager | | |
| | | | | | | | Michael Reed is responsible for portfolio management of the RBC BlueBay Diversified Credit Fund. Michael joined BlueBay in October 2007 from Pendragon, where, as a Partner, he ran the company’s convertible arbitrage strategies. Prior to that, he was a Managing Director of Salomon Brothers, responsible for international convertible bond trading between 1994 and 2002. Michael joined the Japanese Warrant Arbitrage desk at Salomon in 1989 and spent two years trading Japanese Warrant Arbitrage in Tokyo. Michael holds a Bachelor of Engineering from Southampton University. | | |
| | | | | | | | Mark Dowding | | |
| | | | | | | | Partner, Co-Head Investment Grade | | |
| | | | | | | | Senior Portfolio Manager | | |
| | | | | | | | Mark Dowding Co-Heads the investment grade team at BlueBay, is a member of the asset allocation committee and is responsible for portfolio management of the RBC BlueBay Diversified Credit Fund. Mark joined BlueBay in August 2010 from Deutsche Asset Management, where he was Head of Fixed Income in Europe. Prior to this, Mark was Head of Fixed Income in Europe for Invesco, where he managed a range of global fixed income portfolios for retail and institutional clients. Mark started his career as a Fixed Income Portfolio Manager at Morgan Grenfell in 1993 and holds a BA Hons in Economics from the University of Warwick. | | |
| | | | | | | | Justin Jewell | | |
| | | | | | | | Co-Head of Long Only Strategies | | |
| | | | | | | | Senior Portfolio Manager | | |
| | | | | | | | Justin Jewell is responsible for portfolio management of the RBC BlueBay Diversified Credit Fund and the RBC BlueBay High Yield Bond Fund. Justin joined BlueBay in April 2009, initially as Head of High Yield Trading, before moving into portfolio management at the beginning of 2012. He has over ten years’ industry experience and spent a large part of his career at UBS where, most recently, he was Director of High Yield and Distressed Trading in Europe. Justin worked as a senior trader at MKM Longboat LLP between June and November 2008, though he returned to UBS after the fund wound down. Justin has a BSc in Economics from the London School of Economics and Political Science. | | |
| | | | | | | | Tom Kreuzer | | |
| | | | | | | | Co-Head of Long Only Strategies | | |
| | | | | | | | Senior Portfolio Manager | | |
| | | | | | | | Tom Kreuzer is responsible for portfolio management of the RBC BlueBay Diversified Credit Fund and the RBC BlueBay High Yield Bond Fund. Tom joined BlueBay in July 2002 and is a Portfolio Manager and Head of North American High Yield Credit based in the Stamford, Connecticut, office. Prior to BlueBay, Tom spent three years at Deutsche Bank within the Leveraged Finance and Financial Sponsor Group, in New York and London, where he was an analyst prior to being promoted to Associate in 2002. Tom holds a BA (cum laude) from Middlebury College, USA. | | |
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PORTFOLIO MANAGERS | | | | | | |
Marc Stacey | | | | | | |
Senior Portfolio Manager | | | | | | |
Marc Stacey is a Senior Portfolio Manager within the Investment Grade team focusing on non-soverign debt and specialising in financials and is responsible for portfolio management of the RBC BlueBay Diversified Credit Fund. Marc started at BlueBay in June 2004 as an operations analyst before joining the Investment Grade Debt Team in March 2006 as a trader. He moved to his current role in January 2011. As a lead portfolio manager, Marc has been instrumental in driving the success of the European IG credit strategies as well as the peer-leading performance of the Financial Capital Bond Fund. Prior to BlueBay, Marc spent two years at CSFB focusing on credit derivatives. He holds a Bachelor of Business Science (Hons) in Economics and Finance from the University of Cape Town, South Africa. | | | | | | |
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| | 1 Year(a) | | | 3 Year(a) | | | 5 Year(a) | | | Since Inception(a) | | | Net Expense Ratio(b)(c)
| | | Gross Expense Ratio(b)(c) | |
Average Annual Total Returns as of March 31, 2018 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | |
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RBC Bluebay Emerging Market Debt Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
- Including Max Sales Charge of 4.25% | | | 2.51% | | | | 2.20% | | | | (0.40)% | | | | 1.62% | | | | | | | | | |
- At Net Asset Value | | | 7.07% | | | | 3.68% | | | | 0.48% | | | | 2.32% | | | | 1.15% | | | | 7.94% | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | |
- At Net Asset Value | | | 7.13% | | | | 3.88% | | | | 0.68% | | | | 2.53% | | | | 0.90% | | | | 2.24% | |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | |
- At Net Asset Value | | | 7.31% | | | | 3.96% | | | | 0.78% | | | | 2.64% | | | | 0.85% | (d) | | | 53.42% | (d) |
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JPMorgan EMBI Global Diversified Index(e) | | | 4.30% | | | | 5.78% | | | | 4.68% | | | | 6.15% | | | | | | | | | |
JPMorgan GBI-EM Global Diversified Index(e) | | | 12.99% | | | | 17.20% | | | | (3.28)% | | | | 1.68% | | | | | | | | | |
RBC Bluebay High Yield Bond Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | |
- Including Max Sales Charge of 4.25% | | | (0.42)% | | | | 2.62% | | | | 3.39% | | | | 5.51% | | | | | | | | | |
- At Net Asset Value | | | 4.02% | | | | 4.11% | | | | 4.29% | | | | 6.23% | | | | 0.70% | | | | 4.44% | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | |
- At Net Asset Value | | | 4.17% | | | | 4.42% | | | | 4.59% | | | | 6.53% | | | | 0.45% | | | | 1.44% | |
| | | | | | |
ICE BofAML US High Yield Index(e) | | | 3.67% | | | | 5.18% | | | | 5.01% | | | | 7.23% | | | | | | | | | |
ICE BofAML Global High Yield Constrained Index(e) | | | 6.65% | | | | 6.41% | | | | 5.05% | | | | 7.56% | | | | | | | | | |
RBC Bluebay Diversified Credit Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | |
- At Net Asset Value | | | 8.01% | | | | 3.37% | | | | N/A | | | | 3.75% | | | | 1.00% | | | | 1.32% | |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | |
- At Net Asset Value | | | 8.05% | | | | 3.42% | | | | N/A | | | | 3.79% | | | | 0.95% | (d) | | | 54.27% | (d) |
| | | | | | |
ICE LIBOR USD 3 Month(e) | | | 1.46% | | | | 0.91% | | | | N/A | | | | 0.85% | | | | | | | | | |
Performance data quoted represents past performance. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Performance shown reflects contractual fee waivers, without such fee waivers total returns would be reduced. Performance information does not reflect the 2% fee on shares redeemed or exchanged within 30 days of purchase. If such redemption fee was included, performance would be reduced. For performance data current to the most recent month-end go to www.rbcgam.us. Please see footnotes below.
(a) | The inception date (commencement of operations) is November 27, 2013 for Class A shares, December 27, 2016 for Class R6 shares and November 30, 2011 for Class I shares for each Fund except RBC BlueBay Diversified Credit Fund, which is December 9, 2014 for Class I shares. The performance in the table for the Class A and Class R6 shares prior to the inception of those classes reflects the performance of the Class I shares since the Fund’s inception. |
4
(b) | The Funds’ expenses reflect actual expenses for the most recent year end except for Class R6 which is from December 27, 2016 (commencement of operations) through September 30, 2017. |
(c) | Effective October 2, 2017, the advisor has contractually agreed to waive fees and/or make payments in order to keep total operating expenses at annual ratios of 1.12% for Class A, 0.87% for Class I and 0.82% for Class R6 of BlueBay Emerging Market Debt Fund and 0.69% for Class I and 0.64% for Class R6 of BlueBay Diversified Credit Fund until January 31, 2019. Effective November 1, 2017, the advisor has contractually agreed to waive fees and/or make payments in order to keep total operating expenses at annual ratios of 0.82% for Class A and 0.57% for Class I of BlueBay High Yield Bond Fund until January 31, 2019. |
(e) | 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. |
JPMorgan Emerging Markets Bond Index (“EMBI”) Global Diversified is a subset of the JPMorgan EMBI. The JPMorgan EMBI tracks the performance of U.S. dollar-denominated Brady bonds, Eurobonds and traded loans issued by sovereign and quasi-sovereign entities in emerging markets. The JPMorgan EMBI Global Diversified limits the weights of countries with larger debt stocks by including only a specified portion of these countries’ eligible current face amounts of debt outstanding.
JPMorgan GBI-EM Global Diversified Index tracks the performance of local currency-denominated bonds issued by governments in emerging markets. It includes only countries directly accessible by most of the international investor base. The maximum weight to a country is capped at 10%.
The ICE BofAML US High Yield Index tracks the performance of U.S. dollar—denominated below investment grade corporate debt publicly issued in the U.S. domestic market.
The ICE BofAML Global High Yield Constrained Index tracks the performance of all U.S. dollar-, Canadian dollar-, Great British pound-, and Euro-denominated, below investment grade (based on an average of Moody’s, S&P, and Fitch) corporate debt publicly issued in the major domestic or Eurobond markets. Constituents are market capitalization-weighted based on their current amount outstanding, provided the total allocation to an individual issuer does not exceed 2%.
The ICE LIBOR USD 3 Month is a wholesale funding rate, for three-month maturities in U.S. dollars, anchored in LIBOR panel banks’ unsecured wholesale transactions to the greatest extent possible, with a waterfall to enable a rate to be published in all market circumstances. LIBOR panel banks’ submissions are ranked by ICE Benchmark Administration, and the upper and lower quartiles are excluded to remove outliers. The relevant rate is then calculated as the trimmed arithmetic mean of the remaining submissions, rounded to five decimal places. Each LIBOR panel bank’s submission carries an equal weight, subject to the trimming.
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| | | | | | | | | | | | | | |
FUND STATISTICS (UNAUDITED) | | | | | | | | | | |
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RBC Bluebay Emerging Market Debt Fund | | | | | | | | | | |
High level of total return consisting of income and capital appreciation. | | | | | | | | | | Investment Objective Benchmark |
JPMorgan EMBI Global Diversified Index | | | | | | | | | |
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![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758d69.jpg)
*Includes U.S. dollar denominated cash equivalent investments representing 6.11% of investments. | | | | | | | Asset Allocation as of 3/31/18 (% of Fund’s investments) & Top Five Industries (as of 3/31/18) (% of Fund’s net assets) |
Ecuador Government International Bond, 7.88%, 1/23/28 | | 5.04% | | Bahamas Government International Bond, 6.00%, 11/21/28 | | | 2.07% | | | | | | | Top Ten Holdings (excluding investment companies) (as of 3/31/18) (% of Fund’s net assets) |
Argentine Republic Government International Bond, 5.88%, 1/11/28 | | 2.98% | | Argentine Republic Government International Bond, 4.63%, 1/11/23 | | | 1.92% | | | | | | |
Iraq International Bond, 5.80%, 1/15/28 | | 2.44% | | Petrobras Global Finance BV, 5.75%, 2/1/29 | | | 1.90% | | | | | | |
Honduras Government International Bond, 7.50%, 3/15/24 | | 2.34% | | Bolivian Government International Bond, 4.50%, 3/20/28 | | | 1.88% | | | | | | |
Ecopetrol SA, 5.88%, 5/28/45 | | 2.09% | | | | | | | | | | | |
Republic of South Africa Government Bond, 8.75%, 2/28/48 | | 2.07% | | | | | | | | | | | |
*A listing of all portfolio holdings can be found beginning on page 10 | | | | | | | | | |
| | | |
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758d691.jpg) | | | | | | | Growth of $1,000,000 Initial Investment Since Inception (11/30/11) |
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The graph reflects an initial investment of $1,000,000 over the period from November 30, 2011 (commencement of operations) to March 31, 2018 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. | | | | | | | |
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7
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| | | | | | | | | | | | FUND STATISTICS (UNAUDITED) | |
| | | | | |
| | | | | | | | | | | | RBC Bluebay High Yield Bond Fund | | | | | |
Investment Objective | | | | | | | | | | | | High level of total return consisting of income and capital appreciation. | |
Benchmark | | | | | | | | | | | | BofA Merrill Lynch High Yield Master II Index | |
| | | | |
Asset Allocation as of 3/31/18 (% of Fund’s investments) & Top Five Industries (as of 3/31/18) (% of Fund’s net assets) | | | | | | | | | | | | ![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758d70.jpg)
*Includes U.S. dollar denominated cash equivalent investments representing 3.15% of investments. | |
Top Ten Holdings (excluding investment companies) (as of 3/31/18) (% of Fund’s net assets) | | | | | | | | | | | | Momentive Performance Materials, Inc., 3.88%, 10/24/21 | | | 1.54 | % | | JPMorgan Chase & Co., (LIBOR USD 3-Month + 3.470 %), 7.90%, 10/30/66 | | | 1.26 | % | | | | |
| | | | | | | | | | Solera LLC / Solera Finance, Inc., 10.50%, 3/1/24 | | | 1.39 | % | | T-Mobile USA, Inc., 6.63%, 4/1/23 | | | 1.19 | % | | | | |
| | | | | | | | | | Equinix, Inc., 5.38%, 1/1/22 | | | 1.39 | % | | Reynolds Group Issuer, Inc. / | | | 1.15 | % | | | | |
| | | | | | | | | | Level 3 Parent LLC, 5.75%, 12/1/22 | | | 1.35 | % | | Reynolds Group Issuer LLC / Reynolds Group Issuer Lu, 5.75%, 10/15/20 | | | | | | | | |
| | | | | | | | | | | | LTF Merger Sub, Inc., 8.50%, 6/15/23 | | | 1.32 | % | | CSC Holdings LLC, 10.13%, 1/15/23 | | | 1.11 | % | | | | |
| | | | | | | | | | | | CCO Holdings LLC / CCO Holdings Capital Corp., 5.13%, 5/1/27 | | | 1.31 | % | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | *A listing of all portfolio holdings can be found beginning on page 19 | |
| | | | |
Growth of $1,000,000 Initial Investment Since Inception (11/30/11) | | | | | | | | | | | | ![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758d701.jpg) | |
| | | | |
| | | | | | | | | | | | The graph reflects an initial investment of $1,000,000 over the period from November 30, 2011 (commencement of operations) to March 31, 2018 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. | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
FUND STATISTICS (UNAUDITED) | | | | | | | | | | | | | | | |
RBC Bluebay Diversified Credit Fund | | | | | | | | | | | | | | | |
High level of total return consisting of income and capital appreciation. | | | | | | | | | | | | | | | Investment Objective |
3-Month USD LIBOR Index | | | | | | | | | | | | | | | | | | Benchmark |
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758d71.jpg) | | | | | | | | | | | | | | | Asset Allocation as of 3/31/18 (% of Fund’s investments) & Top Five Industries (as of 3/31/18) (% of Fund’s net assets) |
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*Includes U.S. dollar denominated cash equivalent investments representing 7.27% of investments. | | | | | | | | | | | |
Republic of South Africa Government Bond, 10.50%, 12/21/26 | | | 2.42 | % | | Stichting AK Rabobank Certificaten, 6.50%, 3/29/67 | | | 1.81 | % | | | | | | | | | | | | | | Top Ten Holdings (excluding investment companies) (as of 3/31/18) (% of Fund’s net assets) |
CaixaBank SA, (5 Year EUR Swap + 6.498%), 6.75%, 9/13/66 | | | 2.20 | % | | Ecuador Government International Bond, 7.88%, 1/23/28 | | | 1.57 | % | | | | | | | | | | | | | |
Intesa Sanpaolo SpA, (5 Year EUR Swap + 7.192%), 7.75%, 7/11/66 | | | 2.18 | % | | Colombian TES, 10.00%, 7/24/24 | | | 1.53 | % | | | | | | | | | | | | | |
Brazil Notas do Tesouro Nacional Series F, 10.00%, 1/1/23 | |
| 1.98
| %
| | Malaysia Government Bond, 3.80%, 8/17/23 | | | 1.23 | % | | | | | | | | | | | | | |
Nationwide Building Society, 10.25%, 6/20/66 | | | 1.95 | % | | Turkey Government Bond, 10.50%, 8/11/27 | | | 1.20 | % | | | | | | | | | | | | | |
*A listing of all portfolio holdings can be found beginning on page 28 | | | | | | | | | | | | | | | | | |
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758d711.jpg) | | | | | | | | | | | | | | | Growth of $100,000 Initial Investment Since Inception (12/9/14) |
The graph reflects an initial investment of $100,000 over the period from December 9, 2014 (commencement of operations) to March 31, 2018 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. | | | | | | | | | | | |
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9
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Emerging Market Debt Fund
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
Foreign Governnment Bonds — 69.19% | | | | |
Argentina — 8.67% | | | | |
$400,000 | | Argentine Republic Government International Bond, 4.63%, 1/11/23 | | $ | 385,261 | |
635,000 | | Argentine Republic Government International Bond, 5.88%, 1/11/28 | | | 598,011 | |
370,000 | | Argentine Republic Government International Bond, 6.88%, 1/11/48 | | | 336,552 | |
578,970 | | Argentine Republic Government International Bond, 13.24%, 12/15/35(a) | | | 47,476 | |
210,000 | | Province of Jujuy Argentina, 8.63%, 9/20/22 | | | 217,105 | |
150,000 | | Provincia de Cordoba, 7.13%, 6/10/21 | | | 157,327 | |
| | | | | | |
| | | | | 1,741,732 | |
| | | | | | |
Azerbaijan — 1.88% | | | | |
210,000 | | Republic of Azerbaijan International Bond, 3.50%, 9/1/32 | | | 175,993 | |
200,000 | | Republic of Azerbaijan International Bond, 4.75%, 3/18/24 | | | 200,943 | |
| | | | | | |
| | | | | 376,936 | |
| | | | | | |
Bahamas — 2.07% | | | | |
400,000 | | Bahamas Government International Bond, 6.00%, 11/21/28 | | | 415,533 | |
| | | | | | |
Bahrain — 0.93% | | | | |
200,000 | | Bahrain Government International Bond, 6.75%, 9/20/29 | | | 186,593 | |
| | | | | | |
Barbados — 0.02% | | | | |
5,000 | | Barbados Government International Bond, 7.25%, 12/15/21 | | | 4,371 | |
| | | | | | |
Belarus — 2.15% | | | | |
200,000 | | Republic of Belarus International Bond, 6.88%, 2/28/23 | | | 211,567 | |
200,000 | | Republic of Belarus International Bond, 7.63%, 6/29/27 | | | 219,825 | |
| | | | | | |
| | | | | 431,392 | |
| | | | | | |
Bolivia — 1.88% | | | | |
400,000 | | Bolivian Government International Bond, 4.50%, 3/20/28 | | | 377,000 | |
| | | | | | |
Brazil — 0.90% | | | | |
200,000 | | Brazilian Government International Bond, 5.00%, 1/27/45 | | | 179,827 | |
| | | | | | |
Costa Rica — 2.87% | | | | |
200,000 | | Costa Rica Government International Bond, 4.38%, 4/30/25 | | | 189,416 | |
200,000 | | Costa Rica Government International Bond, 5.63%, 4/30/43 | | | 180,867 | |
200,000 | | Costa Rica Government International Bond, 7.00%, 4/4/44 | | | 207,150 | |
| | | | | | |
| | | | | 577,433 | |
| | | | | | |
Croatia — 1.05% | | | | |
200,000 | | Croatia Government International Bond, 6.75%, 11/5/19 | | | 211,807 | |
| | | | | | |
10
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Emerging Market Debt Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
Dominican Republic — 2.47% | | | | |
$ 145,000 | | Dominican Republic International Bond, 5.95%, 1/25/27 | | $ | 152,594 | |
195,000 | | Dominican Republic International Bond, 6.50%, 2/15/48 | | | 202,488 | |
130,000 | | Dominican Republic International Bond, 6.85%, 1/27/45 | | | 140,465 | |
| | | | | | |
| | | | | 495,547 | |
| | | | | | |
Ecuador — 6.04% | | | | |
1,055,000 | | Ecuador Government International Bond, 7.88%, 1/23/28 | | | 1,012,800 | |
200,000 | | Ecuador Government International Bond, 7.95%, 6/20/24 | | | 200,750 | |
| | | | | | |
| | | | | 1,213,550 | |
| | | | | | |
Egypt — 2.18% | | | | |
225,000 | | Egypt Government International Bond, 5.58%, 2/21/23 | | | 228,232 | |
200,000 | | Egypt Government International Bond, 7.90%, 2/21/48 | | | 210,319 | |
| | | | | | |
| | | | | 438,551 | |
| | | | | | |
El Salvador — 3.27% | | | | |
181,000 | | El Salvador Government International Bond, 5.88%, 1/30/25 | | | 177,380 | |
219,000 | | El Salvador Government International Bond, 6.38%, 1/18/27 | | | 217,540 | |
110,000 | | El Salvador Government International Bond, 7.65%, 6/15/35 | | | 115,706 | |
127,000 | | El Salvador Government International Bond, 8.63%, 2/28/29 | | | 146,209 | |
| | | | | | |
| | | | | 656,835 | |
| | | | | | |
| |
Gabon — 0.99% | | | | |
200,000 | | Gabon Government International Bond, 6.38%, 12/12/24 | | | 197,810 | |
| | | | | | |
| |
Ghana — 1.13% | | | | |
200,000 | | Ghana Government International Bond, 9.25%, 9/15/22 | | | 227,411 | |
| | | | | | |
| |
Honduras — 2.34% | | | | |
425,000 | | Honduras Government International Bond, 7.50%, 3/15/24 | | | 469,413 | |
| | | | | | |
| |
Indonesia — 1.00% | | | | |
200,000 | | Perusahaan Penerbit SBSN Indonesia III, 4.40%, 3/1/28 | | | 201,500 | |
| | | | | | |
| |
Iraq — 2.44% | | | | |
510,000 | | Iraq International Bond, 5.80%, 1/15/28 | | | 489,302 | |
| | | | | | |
| |
Ivory Coast — 1.18% | | | | |
250,000 | | Ivory Coast Government International Bond, 6.13%, 6/15/33 | | | 237,736 | |
| | | | | | |
| |
Jamaica — 1.10% | | | | |
200,000 | | Jamaica Government International Bond, 6.75%, 4/28/28 | | | 221,733 | |
| | | | | | |
11
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Emerging Market Debt Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
Jordan — 0.97% | | | | |
$ 200,000 | | Jordan Government International Bond, 5.75%, 1/31/27 | | $ | 194,390 | |
| | | | | | |
Kenya — 2.34% | | | | |
245,000 | | Kenya Government International Bond, 7.25%, 2/28/28 | | | 255,691 | |
200,000 | | Kenya Government International Bond, 8.25%, 2/28/48 | | | 213,770 | |
| | | | | | |
| | | | | 469,461 | |
| | | | | | |
Mongolia — 1.54% | | | | |
275,000 | | Mongolia Government International Bond, MTN, 8.75%, 3/9/24 | | | 309,158 | |
| | | | | | |
Nigeria — 6.66% | | | | |
200,000 | | Nigeria Government International Bond, 6.75%, 1/28/21 | | | 210,502 | |
200,000 | | Nigeria Government International Bond, 7.14%, 2/23/30 | | | 207,478 | |
200,000 | | Nigeria Government International Bond, MTN, 7.63%, 11/28/47 | | | 206,782 | |
200,000 | | Nigeria Government International Bond, 7.70%, 2/23/38 | | | 210,069 | |
56,103,000(b) | | Nigeria OMO Bill, 15.03%, 7/12/18(c) | | | 149,848 | |
69,133,000(b) | | Nigeria OMO Bill, 18.87%, 4/5/18(c) | | | 192,036 | |
58,396,000(b) | | Nigeria OMO Bill, 19.12%, 4/12/18(c) | | | 161,728 | |
| | | | | | |
| | | | | 1,338,443 | |
| | | | | | |
Oman — 1.69% | | | | |
350,000 | | Oman Government International Bond, 5.63%, 1/17/28 | | | 340,149 | |
| | | | | | |
South Africa — 3.79% | | | | |
5,000,000(b) | | Republic of South Africa Government Bond, 8.75%, 2/28/48 | | | 416,683 | |
240,000 | | Republic of South Africa Government International Bond, 4.85%, 9/27/27 | | | 236,887 | |
100,000 | | Republic of South Africa Government International Bond, 6.25%, 3/8/41 | | | 107,149 | |
| | | | | | |
| | | | | 760,719 | |
| | | | | | |
Sri Lanka — 1.01% | | | | |
200,000 | | Sri Lanka Government International Bond, 6.00%, 1/14/19 | | | 203,516 | |
| | | | | | |
Tunisia — 0.99% | | | | |
210,000 | | Banque Centrale de Tunisie International Bond, 5.75%, 1/30/25 | | | 199,780 | |
| | | | | | |
Turkey — 2.09% | | | | |
240,000 | | Turkey Government International Bond, 4.88%, 10/9/26 | | | 226,162 | |
240,000 | | Turkey Government International Bond, 4.88%, 4/16/43 | �� | | 193,530 | |
| | | | | | |
| | | | | 419,692 | |
| | | | | | |
Ukraine — 1.13% | | | | |
100,000 | | Ukraine Government International Bond, 7.75%, 9/1/23 | | | 103,591 | |
120,000 | | Ukraine Government International Bond, 7.75%, 9/1/24 | | | 123,007 | |
| | | | | | |
| | | | | 226,598 | |
| | | | | | |
12
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Emerging Market Debt Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
Venezuela — 0.42% | | | | |
$ 75,000 | | Venezuela Government International Bond, 7.75%, 10/13/19(d) | | $ | 22,350 | |
40,000 | | Venezuela Government International Bond, 8.25%, 10/13/24(d) | | | 11,800 | |
150,000 | | Venezuela Government International Bond, 11.75%, 10/21/26(d) | | | 49,950 | |
| | | | | | |
| | | | | 84,100 | |
| | | | | | |
Total Foreign Governnment Bonds | | | 13,898,018 | |
| | | | | | |
(Cost $14,038,171) | | | | |
Corporate Bonds — 24.16% | | | | |
Argentina — 0.97% | | | | |
200,000 | | Agua y Saneamientos Argentinos SA, 6.63%, 2/1/23 | | | 194,587 | |
| | | | | | |
| |
Azerbaijan — 1.10% | | | | |
200,000 | | Southern Gas Corridor CJSC, 6.88%, 3/24/26 | | | 220,040 | |
| | | | | | |
| |
Bahrain — 1.00% | | | | |
200,000 | | CBB International Sukuk Co. SPC, 6.88%, 10/5/25 | | | 201,500 | |
| | | | | | |
| |
Brazil — 3.26% | | | | |
200,000 | | Cemig Geracao e Transmissao SA, 9.25%, 12/5/24 | | | 214,245 | |
42,000 | | Petrobras Global Finance BV, 5.63%, 5/20/43 | | | 36,618 | |
395,000 | | Petrobras Global Finance BV, 5.75%, 2/1/29 | | | 381,294 | |
21,000 | | Petrobras Global Finance BV, 7.38%, 1/17/27 | | | 22,754 | |
| | | | | | |
| | | | | 654,911 | |
| | | | | | |
Colombia — 2.09% | | | | |
426,000 | | Ecopetrol SA, 5.88%, 5/28/45 | | | 420,812 | |
| | | | | | |
| |
Ecuador — 0.94% | | | | |
200,000 | | Petroamazonas EP, 4.63%, 11/6/20 | | | 189,500 | |
| | | | | | |
| |
Indonesia — 0.99% | | | | |
200,000 | | Minejesa Capital BV, 5.63%, 8/10/37 | | | 198,500 | |
| | | | | | |
| |
Israel — 0.98% | | | | |
200,000 | | Israel Electric Corp. Ltd., 4.25%, 8/14/28(e) | | | 195,897 | |
| | | | | | |
| |
Kazakhstan — 1.97% | | | | |
200,000 | | KazMunayGas National Co. JSC, 4.75%, 4/19/27 | | | 200,000 | |
200,000 | | KazMunayGas National Co. JSC, 5.75%, 4/19/47 | | | 196,479 | |
| | | | | | |
| | | | | 396,479 | |
| | | | | | |
13
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Emerging Market Debt Fund (cont.)
March 31, 2018 (Unaudited)
| | | | |
Principal Amount | | | | Value |
|
Mexico — 2.31% | | |
$ 220,000 | | Petroleos Mexicanos, 5.35%, 2/12/28 | | $ 216,620 |
255,000 | | Petroleos Mexicanos, 6.35%, 2/12/48 | | 246,394 |
| | | | |
| | | | 463,014 |
| | | | |
Mongolia — 1.07% | | |
200,000 | | Trade & Development Bank of Mongolia LLC, MTN, 9.38%, 5/19/20 | | 214,562 |
| | | | |
| |
Pakistan — 1.61% | | |
335,000 | | Third Pakistan International Sukuk Co. Ltd. (The), 5.63%, 12/5/22 | | 323,343 |
| | | | |
| |
Peru — 2.33% | | |
200,000 | | Petroleos del Peru SA, 4.75%, 6/19/32 | | 194,920 |
275,000 | | Petroleos del Peru SA, 5.63%, 6/19/47 | | 273,565 |
| | | | |
| | 468,485 |
| | | | |
Ukraine — 1.04% | | |
200,000 | | State Savings Bank of Ukraine Via SSB #1 Plc, STEP, 9.38%, 3/10/23 | | 209,663 |
| | | | |
| |
United Kingdom — 2.24% | | |
4,185,000(f) | | ICBC Standard Bank Plc, EMTN, 18.30%, 6/14/18(c),(e) | | 229,197 |
4,100,000(f) | | ICBC Standard Bank Plc, EMTN, 20.57%, 7/26/18(c),(e) | | 220,286 |
| | | | |
| | 449,483 |
| | | | |
Venezuela — 0.26% | | |
128,584 | | Petroleos de Venezuela SA, 6.00%, 11/15/26(d) | | 34,718 |
55,000 | | Petroleos de Venezuela SA, 9.00%, 11/17/21(d) | | 17,737 |
| | | | |
| | | | 52,455 |
| | | | |
Total Corporate Bonds | | 4,853,231 |
| | | | |
(Cost $4,943,880) | | |
| | |
Shares | | | | |
Investment Company — 6.07% | | |
1,219,624 | | JPMorgan 100% US Treasury Securities Money Market Fund, Capital Shares | | 1,219,624 |
| | | | |
Total Investment Company | | 1,219,624 |
| | | | |
(Cost $1,219,624) | | |
| |
Total Investments | | $19,970,873 |
(Cost $20,201,675)(g) — 99.42% | | |
| |
Other assets in excess of liabilities — 0.58% | | 117,271 |
| | | | |
| |
NET ASSETS — 100.00% | | $20,088,144 |
| | | | |
14
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Emerging Market Debt Fund (cont.)
March 31, 2018 (Unaudited)
(a) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end. |
(b) | Investment in non-U.S. Dollars. Principal amount reflects local currency. |
(c) | Zero Coupon Bond. The rate represents the yield at time of purchase. |
(d) | Issuer filed for bankruptcy and/or is in default of interest payments. |
(e) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(f) | Principal amount denoted in Egyptian Pound. |
(g) | See Notes to Financial Statements for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Foreign currency exchange contracts as of March 31, 2018:
| | | | | | | | | | | | | | | | | | | | | | |
Currency Purchased | | | | Currency Sold | | | | Counterparty | | | | Settlement Date | | | | Value/Unrealized Appreciation (Depreciation) |
CNH | | 1,177,808 | | | | USD | | 182,047 | | | | Citibank N.A. | | | | 4/4/18 | | | | | $ 5,704 | |
CNH | | 1,241,897 | | | | USD | | 191,953 | | | | Citibank N.A. | | | | 4/4/18 | | | | | 6,014 | |
CNH | | 23,792 | | | | USD | | 3,680 | | | | Citibank N.A. | | | | 4/4/18 | | | | | 113 | |
IDR | | 6,520,000,000 | | | | USD | | 469,663 | | | | Citibank N.A. | | | | 6/27/18 | | | | | 1,998 | |
MXN | | 410,760 | | | | USD | | 21,891 | | | | Citibank N.A. | | | | 6/27/18 | | | | | 386 | |
MXN | | 7,678,952 | | | | USD | | 415,000 | | | | Citibank N.A. | | | | 6/27/18 | | | | | 1,469 | |
PLN | | 1,678,080 | | | | EUR | | 394,652 | | | | Citibank N.A. | | | | 6/27/18 | | | | | 2,163 | |
USD | | 31,004 | | | | EUR | | 25,000 | | | �� | Citibank N.A. | | | | 6/27/18 | | | | | 30 | |
USD | | 32,909 | | | | ZAR | | 387,585 | | | | Citibank N.A. | | | | 6/27/18 | | | | | 569 | |
CNH | | 679,118 | | | | USD | | 100,551 | | | | Citibank N.A. | | | | 9/19/18 | | | | | 6,887 | |
CNH | | 386,099 | | | | USD | | 57,186 | | | | Citibank N.A. | | | | 9/19/18 | | | | | 3,895 | |
CNH | | 772,130 | | | | USD | | 114,373 | | | | Citibank N.A. | | | | 9/19/18 | | | | | 7,779 | |
CNH | | 740,775 | | | | USD | | 109,702 | | | | Citibank N.A. | | | | 9/19/18 | | | | | 7,490 | |
SAR | | 2,079,895 | | | | USD | | 551,696 | | | | Citibank N.A. | | | | 11/7/18 | | | | | 2,826 | |
| | | | | | | | | | | | | | | | | | | |
|
| |
| | | | | | | | | | | | | | | | | | | | | $ 47,323 | |
| | | | | | | | | | |
USD | | 372,000 | | | | CNH | | 2,443,497 | | | | Citibank N.A. | | | | 4/4/18 | | | | | $(17,511) | |
BRL | | 95,300 | | | | USD | | 29,104 | | | | Citibank N.A. | | | | 6/4/18 | | | | | (398) | |
BRL | | 95,314 | | | | USD | | 29,104 | | | | Citibank N.A. | | | | 6/4/18 | | | | | (394) | |
BRL | | 1,319,374 | | | | USD | | 403,446 | | | | Citibank N.A. | | | | 6/4/18 | | | | | (6,032) | |
BRL | | 96,849 | | | | USD | | 29,545 | | | | Citibank N.A. | | | | 6/4/18 | | | | | (373) | |
USD | | 424,204 | | | | MXN | | 8,022,209 | | | | Citibank N.A. | | | | 6/27/18 | | | | | (10,881) | |
USD | | 3,653 | | | | MXN | | 67,504 | | | | Citibank N.A. | | | | 6/27/18 | | | | | (8) | |
USD | | 6,981 | | | | CNY | | 47,312 | | | | Citibank N.A. | | | | 9/19/18 | | | | | (491) | |
USD | | 85,253 | | | | CNY | | 577,802 | | | | Citibank N.A. | | | | 9/19/18 | | | | | (5,999) | |
USD | | 101,766 | | | | CNY | | 689,872 | | | | Citibank N.A. | | | | 9/19/18 | | | | | (7,185) | |
USD | | 186,000 | | | | CNY | | 1,263,135 | | | | Citibank N.A. | | | | 9/19/18 | | | | | (13,486) | |
USD | | 233,979 | | | | SAR | | 884,862 | | | | Citibank N.A. | | | | 11/7/18 | | | | | (1,934) | |
15
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Emerging Market Debt Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | Value/Unrealized |
| | | | | | | | | | | | | | | | Settlement | | | | Appreciation |
Currency Purchased | | | | Currency Sold | | | | Counterparty | | | | Date | | | | (Depreciation) |
USD | | 316,021 | | | | SAR | | 1,195,033 | | | | Citibank N.A. | | | | 11/7/18 | | | | | $ (2,587) | |
USD | | 361,000 | | | | OMR | | 141,048 | | | | Citibank N.A. | | | | 11/14/18 | | | | | (3,411) | |
| | | | | | | | | | | | | | | | | | | | | $(70,690) | |
| | | | | | | | | | | | | | | | | | | |
|
| |
Total | | | | | | | | | | | | | | | | | | | | | $(23,367) | |
Financial futures contracts as of March 31, 2018:
| | | | | | | | | | | | | | | | | | |
Long Position | | Number of Contracts | | | Expiration Date | | | Value/Unrealized Appreciation | | | Notional Value | | | Clearinghouse |
Ten Year Ultra U.S. Treasury Bonds | | | 6 | | | | June 2018 | | | | $7,158 | | | USD | $774,035 | | | Citigroup Global Markets, Inc. |
Total | | | | | | | | | | | $7,158 | | | | | | | |
| | | | | |
Short Position | | Number of Contracts | | | Expiration Date | | | Value/Unrealized Depreciation | | | Notional Value | | | Clearinghouse |
90-Day Euro Dollar | | | 21 | | | | March 2020 | | | | $(5,255) | | | USD | $5,098,008 | | | Citigroup Global Markets, Inc. |
Total | | | | | | | | | | | $(5,255) | | | | | | | |
Interest rate swaps as of March 31, 2018:
| | | | | | | | | | | | | | | | |
Fixed Rate | | Floating Rate | | Payment Frequency | | Counterparty | | Expiration Date | | Notional Amount (000) | | | Value/Unrealized Appreciation (Depreciation) |
9.10% | | BRL-CDI | | Expiration | | Citigroup Global Markets Inc. | | 1/4/21 | | BRL | 4,204(a) | | | | $ 56,589 | |
9.20% | | BRL-CDI | | Expiration | | Citigroup Global Markets Inc. | | 1/4/21 | | BRL | 527(a) | | | | 6,895 | |
11.78% | | BRL-CDI | | Expiration | | Citigroup Global Markets Inc. | | 1/4/21 | | BRL | 381(a) | | | | 17,578 | |
| | | | | | | | | | | | | | | $ 81,062 | |
| | | | | | |
7.99% | | BRL-CDI | | Expiration | | Citigroup Global Markets Inc. | | 1/2/19 | | BRL | 10,500(a) | | | | (51,682) | |
Total | | | | | | | | | | | | | | | $ 29,380 | |
16
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Emerging Market Debt Fund (cont.)
March 31, 2018 (Unaudited)
(a) The Fund pays the fixed rate on these swaps.
Credit default swaps buy protection as of March 31, 2018:
| | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Rate | | Issuer | | Payment Frequency | | Counterparty | | Expiration Date | | Notional Amount (000) | | Premium Paid/ (Received) | | Value/ Unrealized Depreciation | | Value |
1.00% | | Eskom | | Quarterly | | JPMorgan Chase Bank, N.A. | | 12/20/22 | | USD 21 | | | | $2,584 | | | | | $(97) | | | | | $2,487 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | $2,584 | | | | | $(97) | | | | | $2,487 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Credit default swaps sell protection as of March 31, 2018:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Rate | | Issuer | | Payment Frequency | | Counterparty | | Expiration Date | | | ICS* | | | Notional Amount (000)(a) | | | Premium Paid/ (Received) | | | Value/ Unreal. App. | | | Value | |
5.00% | | ITraxx Crossover, Series 29 | | Quarterly | | Citigroup Global Markets Inc. | | | 6/20/23 | | | | 0.028 | | | | EUR850 | | | | $104,162 | | | | $3,807 | | | | $107,969 | |
| | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | $104,162 | | | | $3,807 | | | | $107,969 | |
| | | | | | | | | | | | | | | | | | | | | | |
(a) | The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement. |
* | Implied Credit Spread (“ICS”), represented in absolute terms, utilized in determining the value of the credit default swap agreements as of period end will serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default or other credit event for the credit derivative. The implied credit spread of a referenced entity reflects the cost of buying/ selling protection and may include upfront payments required to be made to enter into the agreement. Generally, wider credit spreads represent a perceived deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the swap agreement. |
17
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Emerging Market Debt Fund (cont.)
March 31, 2018 (Unaudited)
Abbreviations used are defined below:
BRL - Brazilian Real
BRL-CDI - Brazil Cetip InterBank Deposit Rate
CNH - Chinese Yuan Renminbi
CNY - China Yuan
EUR - Euro
IDR - Indonesian Rupiah
MTN - Medium Term Note
MXN - Mexican Peso
OMR - Omani Rial
PLN - Polish Zloty
SAR - Saudi Arabian Riyal
STEP - Step Coupon Bond
USD - United States Dollar
ZAR - South African Rand
Portfolio Diversification (Unaudited)
| | | | |
Industries | | Percentage of Net Assets | |
Foreign Governnment Bonds | | | 69.19% | |
Energy | | | 13.19% | |
Financial | | | 4.35% | |
Utilities | | | 4.01% | |
Government | | | 2.61% | |
Other* | | | 6.65% | |
| | | 100.00% | |
* Includes cash, Investment Company, interest and dividend receivable, pending trades and Fund share transactions, interest rate swaps, credit default swaps, financial futures contracts, foreign currency exchange contracts and accrued expenses payable.
See Notes to the Financial Statements.
18
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay High Yield Bond Fund
March 31, 2018 (Unaudited)
| | | | | | | | |
Principal | | | | | | |
Amount | | | | | Value | |
| | |
| Corporate Bonds — 90.91% | | | | |
| Australia — 0.64% | | | | |
| $ 300,000 | | | Quintis Ltd., 8.75%, 8/1/23(a),(b),(c),(d) | | $ | 255,000 | |
| | | | | | | | |
| |
| Belgium — 0.48% | | | | |
| 200,000 | | | Telenet Finance Luxembourg Notes Sarl, 5.50%, 3/1/28(a) | | | 190,163 | |
| | | | | | | | |
| |
| Brazil — 1.28% | | | | |
| 200,000 | | | Banco do Brasil SA/Cayman, (10 Year. US Treasury Yield Curve Rate T Note Constant Maturity + 6.362%), 9.00%, 12/18/66(e) | | | 214,072 | |
| 280,000 | | | Eldorado International Finance GmbH, 8.63%, 6/16/21(a) | | | 298,200 | |
| | | | | | | | |
| | | | | | | 512,272 | |
| | | | | | | | |
| |
| Canada — 1.74% | | | | |
| 170,000 | | | Norbord, Inc., 6.25%, 4/15/23(a) | | | 179,627 | |
| 90,000 | | | Quebecor Media, Inc., 5.75%, 1/15/23 | | | 92,297 | |
| 170,000 | | | Teck Resources Ltd., 6.25%, 7/15/41 | | | 180,200 | |
| 162,000 | | | Telesat Canada / Telesat LLC, 8.88%, 11/15/24(a) | | | 177,795 | |
| 65,000 | | | Tervita Escrow Corp., 7.63%, 12/1/21(a) | | | 65,947 | |
| | | | | | | | |
| | | | | | | 695,866 | |
| | | | | | | | |
| |
| France — 0.98% | | | | |
| 400,000 | | | SFR Group SA, 6.00%, 5/15/22(a) | | | 390,048 | |
| | | | | | | | |
| |
| Germany — 1.91% | | | | |
| 340,000 | | | Fresenius Medical Care US Finance II, Inc., 5.88%, 1/31/22(a) | | | 363,800 | |
| 183,000(f) | | | KME AG, 6.75%, 2/1/23(a) | | | 227,999 | |
| 140,000(f) | | | ProGroup AG, 3.00%, 3/31/26(a) | | | 170,988 | |
| | | | | | | | |
| | | | | | | 762,787 | |
| | | | | | | | |
| |
| Ghana — 0.56% | | | | |
| 225,000 | | | Tullow Oil Plc, 7.00%, 3/1/25(a) | | | 225,000 | |
| | | | | | | | |
| |
| Italy — 0.67% | | | | |
| 200,000(f) | | | Intesa Sanpaolo SpA, (5 Year EUR Swap + 5.856%), 6.25%, 11/16/66(e) | | | 267,614 | |
| | | | | | | | |
| |
| Luxembourg — 2.83% | | | | |
| 320,000 | | | Altice Financing SA, 6.63%, 2/15/23(a) | | | 316,651 | |
| 320,000(f) | | | Altice Finco SA, 4.75%, 1/15/28 | | | 344,617 | |
| 200,000 | | | Altice Luxembourg SA, 7.75%, 5/15/22(a) | | | 185,500 | |
| 230,000(f) | | | LSF10 Wolverine Investments SCA, 5.00%, 3/15/24(a) | | | 285,438 | |
| | | | | | | | |
| | | | | | | 1,132,206 | |
| | | | | | | | |
| |
| Netherlands — 1.80% | | | | |
| 180,000(f) | | | Maxeda DIY Holding BV, 6.13%, 7/15/22 | | | 211,962 | |
| 75,000(f) | | | Stichting AK Rabobank Certificaten, 6.50%, 3/29/67 | | | 112,655 | |
19
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay High Yield Bond Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | |
Principal | | | | | | |
Amount | | | | | Value | |
| | |
| 160,000(f) | | | Ziggo Secured Finance BV, 4.25%, 1/15/27 | | $ | 198,471 | |
| $ 208,000 | | | Ziggo Secured Finance BV, 5.50%, 1/15/27(a) | | | 195,460 | |
| | | | | | | | |
| | | | | | | 718,548 | |
| | | | | | | | |
| |
| Spain — 2.64% | | | | |
| 200,000(f) | | | Banco Bilbao Vizcaya Argentaria SA, (5 Year EUR Swap + 5.779%), 5.88%, 8/24/66(e) | | | 264,982 | |
| 200,000(f) | | | Banco Santander SA, (5 Year EUR Swap + 5.410%), 6.25%, 6/12/66(e) | | | 255,624 | |
| 200,000(f) | | | Bankia SA, (5 Year EUR Swap + 5.819%), 6.00%, 10/18/66(e) | | | 258,472 | |
| 200,000(f) | | | CaixaBank SA, (5 Year EUR Swap + 6.498%), 6.75%, 9/13/66(e) | | | 277,676 | |
| | | | | | | | |
| | | | | | | 1,056,754 | |
| | | | | | | | |
| |
| Sweden — 0.97% | | | | |
| 320,000(g) | | | Verisure Midholding AB, 5.75%, 12/1/23(a) | | | 388,360 | |
| | | | | | | | |
| |
| United Arab Emirates — 0.50% | | | | |
| 210,000 | | | DAE Funding LLC, 5.00%, 8/1/24(a) | | | 198,712 | |
| | | | | | | | |
| |
| United Kingdom — 4.74% | | | | |
| 230,000(g) | | | Algeco Global Finance Plc, 6.50%, 2/15/23(a) | | | 282,752 | |
| 200,000 | | | Aston Martin Capital Holdings Ltd., 6.50%, 4/15/22(a) | | | 208,000 | |
| 200,000(f) | | | Barclays Plc, (5 Year GBP Swap + 4.910%), 5.88%, 12/15/66(e) | | | 278,365 | |
| 200,000(g) | | | HSBC Holdings Plc, (5 Year EUR Swap + 3.844%), 4.75%, 1/4/67(e) | | | 255,352 | |
| 200,000 | | | HSBC Holdings Plc, (USD ICE Swap Rate 11:00 am NY 5 + 3.746%), 6.00%, 11/22/66(e) | | | 196,500 | |
| 310,000 | | | HSBC Holdings Plc, (USD ICE Swap Rate 11:00 am NY 5 + 3.606%), 6.50%, 9/23/66(e) | | | 316,572 | |
| 260,000(f) | | | Virgin Media Receivables Financing Notes I DAC, 5.50%, 9/15/24 | | | 357,648 | |
| | | | | | | | |
| | | | | | | 1,895,189 | |
| | | | | | | | |
| |
| United States — 68.22% | | | | |
| 188,000 | | | Acadia Healthcare Co., Inc., 5.63%, 2/15/23 | | | 190,350 | |
| 377,000 | | | ADT Corp. (The), 3.50%, 7/15/22 | | | 350,139 | |
| 129,000 | | | Alta Mesa Holdings LP / Alta Mesa Finance Services Corp., 7.88%, 12/15/24 | | | 134,321 | |
| 160,000(h) | | | AMC Entertainment Holdings, Inc., 6.38%, 11/15/24 | | | 229,252 | |
| 130,000 | | | Antero Midstream Partners LP / Antero Midstream Finance Corp., 5.38%, 9/15/24 | | | 130,975 | |
| 250,000 | | | Assurant, Inc., (LIBOR USD 3-Month + 4.135%), 7.00%, 3/27/48(e) | | | 255,558 | |
| 360,000 | | | Ball Corp., 4.38%, 12/15/20 | | | 365,850 | |
| 240,000 | | | Berry Global, Inc., 5.50%, 5/15/22 | | | 246,300 | |
| 202,000 | | | Blackboard, Inc., 9.75%, 10/15/21(a) | | | 171,700 | |
| 353,000 | | | BlueLine Rental Finance Corp. / BlueLine Rental LLC, 9.25%, 3/15/24(a) | | | 378,480 | |
| 350,000 | | | California Resources Corp., 8.00%, 12/15/22(a) | | | 274,750 | |
20
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay High Yield Bond Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | |
Principal | | | | | | |
Amount | | | | | Value | |
| | |
| $ 550,000 | | | CCO Holdings LLC / CCO Holdings Capital Corp., 5.13%, 5/1/27(a) | | $ | 522,170 | |
| 180,000 | | | CDW LLC / CDW Finance Corp., 5.00%, 9/1/23 | | | 182,493 | |
| 271,000 | | | CenturyLink, Inc., 6.45%, 6/15/21 | | | 276,420 | |
| 390,000 | | | Cequel Communications Holdings I LLC / Cequel Capital Corp., 5.13%, 12/15/21(a) | | | 388,537 | |
| 186,000 | | | Cequel Communications Holdings I LLC / Cequel Capital Corp., 6.38%, 9/15/20(a) | | | 189,261 | |
| 331,000 | | | Cequel Communications Holdings I LLC / Cequel Capital Corp., 7.50%, 4/1/28(a) | | | 338,447 | |
| 248,000 | | | Cheniere Corpus Christi Holdings LLC, 7.00%, 6/30/24 | | | 274,350 | |
| 199,000 | | | Churchill Downs, Inc., 4.75%, 1/15/28(a) | | | 187,557 | |
| 270,000 | | | Cinemark USA, Inc., 4.88%, 6/1/23 | | | 266,571 | |
| 385,000 | | | Cleveland-Cliffs, Inc., 4.88%, 1/15/24(a) | | | 373,450 | |
| 70,000 | | | Cleveland-Cliffs, Inc., 5.75%, 3/1/25(a) | | | 66,850 | |
| 232,000(g) | | | Coty, Inc., 4.00%, 4/15/23(a) | | | 286,295 | |
| 318,000 | | | CRC Escrow Issuer LLC / CRC Finco, Inc., 5.25%, 10/15/25(a) | | | 304,860 | |
| 190,000 | | | CSC Holdings LLC, 5.25%, 6/1/24 | | | 180,738 | |
| 400,000 | | | CSC Holdings LLC, 10.13%, 1/15/23(a) | | | 444,000 | |
| 200,000 | | | DCP Midstream LP, (LIBOR USD 3-Month + 5.148%), 7.38%, 6/15/66(e) | | | 199,250 | |
| 140,000 | | | DCP Midstream Operating LP, (LIBOR USD 3-Month + 3.850%), 5.85%, 5/21/43(a),(e) | | | 132,300 | |
| 370,000 | | | Dell, Inc., 5.65%, 4/15/18 | | | 370,518 | |
| 9,000 | | | Diamondback Energy, Inc., 5.38%, 5/31/25(a) | | | 9,117 | |
| 158,000 | | | Diamondback Energy, Inc., 5.38%, 5/31/25 | | | 160,449 | |
| 290,000 | | | DISH DBS Corp., 4.25%, 4/1/18 | | | 290,000 | |
| 180,000 | | | DISH DBS Corp., 5.13%, 5/1/20 | | | 179,793 | |
| 46,000 | | | Energy Ventures Gom LLC / EnVen Finance Corp., 11.00%, 2/15/23(a) | | | 46,460 | |
| 90,000 | | | Ensco Plc, 7.75%, 2/1/26 | | | 82,409 | |
| 110,000 | | | EP Energy LLC / Everest Acquisition Finance, Inc., 8.00%, 2/15/25(a) | | | 73,425 | |
| 540,000 | | | Equinix, Inc., 5.38%, 1/1/22 | | | 556,200 | |
| 360,000 | | | ESH Hospitality, Inc., 5.25%, 5/1/25(a) | | | 350,208 | |
| 469,000 | | | Extraction Oil & Gas, Inc., 5.63%, 2/1/26(a) | | | 443,205 | |
| 190,000 | | | First Data Corp., 5.38%, 8/15/23(a) | | | 193,325 | |
| 110,000 | | | Frontier Communications Corp., 6.25%, 9/15/21 | | | 96,113 | |
| 136,000 | | | Frontier Communications Corp., 8.50%, 4/1/26(a) | | | 131,580 | |
| 167,000 | | | FTS International, Inc., 6.25%, 5/1/22 | | | 167,418 | |
| 184,000 | | | Gulfport Energy Corp., 6.38%, 5/15/25 | | | 176,180 | |
| 88,000 | | | HCA, Inc., 5.88%, 5/1/23 | | | 91,080 | |
| 150,000 | | | Hilton Domestic Operating Co., Inc., 4.25%, 9/1/24 | | | 145,500 | |
| 240,000 | | | Howard Hughes Corp. (The), 5.38%, 3/15/25(a) | | | 237,000 | |
| 270,000 | | | Iron Mountain, Inc., 4.38%, 6/1/21(a) | | | 271,350 | |
| 109,000 | | | Iron Mountain, Inc., 4.88%, 9/15/27(a) | | | 101,098 | |
| 150,000 | | | Iron Mountain, Inc., 5.25%, 3/15/28(a) | | | 141,188 | |
| 500,000 | | | JPMorgan Chase & Co., (LIBOR USD 3-Month + 3.470 %), 7.90%, 10/30/66(e) | | | 502,550 | |
21
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay High Yield Bond Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | |
Principal | | | | | | |
Amount | | | | | Value | |
| | |
| $ 280,000 | | | KAR Auction Services, Inc., 5.13%, 6/1/25(a) | | $ | 278,600 | |
| 333,000 | | | Kenan Advantage Group, Inc. (The), 7.88%, 7/31/23(a) | | | 341,325 | |
| 308,000 | | | Laureate Education, Inc., 8.25%, 5/1/25(a) | | | 330,330 | |
| 542,000 | | | Level 3 Parent LLC, 5.75%, 12/1/22 | | | 540,645 | |
| — | | | Live Nation Entertainment, Inc., 4.88%, 11/1/24(a) | | | — | |
| 241,683 | | | Live Nation Entertainment, Inc., 5.38%, 6/15/22(a) | | | 247,121 | |
| 505,000 | | | LTF Merger Sub, Inc., 8.50%, 6/15/23(a) | | | 528,356 | |
| 130,000 | | | Meredith Corp., 6.88%, 2/1/26(a) | | | 133,413 | |
| 137,000 | | | MGM Growth Properties Operating Partnership LP / MGP Finance Co-Issuer, Inc., 5.63%, 5/1/24 | | | 141,110 | |
| 193,000 | | | MGM Resorts International, 5.25%, 3/31/20 | | | 197,846 | |
| 170,000 | | | MGM Resorts International, 6.63%, 12/15/21 | | | 182,485 | |
| 634,000 | | | Momentive Performance Materials, Inc Escrow Bond., 8.88%, 10/15/20(b),(c),(d) | | | — | |
| 590,000 | | | Momentive Performance Materials, Inc., 3.88%, 10/24/21 | | | 616,727 | |
| 190,000 | | | Momentive Performance Materials, Inc., 4.69%, 4/24/22 | | | 200,450 | |
| 218,000 | | | NCL Corp. Ltd., 4.75%, 12/15/21(a) | | | 220,117 | |
| 120,000(g) | | | Netflix, Inc., 3.63%, 5/15/27 | | | 145,242 | |
| 375,000 | | | Nielsen Finance LLC / Nielsen Finance Co., 5.00%, 4/15/22(a) | | | 374,707 | |
| 194,000 | | | OI European Group BV, 4.00%, 3/15/23(a) | | | 184,723 | |
| 110,000 | | | Parsley Energy LLC / Parsley Finance Corp., 5.25%, 8/15/25(a) | | | 109,038 | |
| 79,000 | | | Parsley Energy LLC / Parsley Finance Corp., 5.63%, 10/15/27(a) | | | 79,000 | |
| 273,000 | | | Plastipak Holdings, Inc., 6.25%, 10/15/25(a) | | | 272,317 | |
| 155,000 | | | Post Holdings, Inc., 5.50%, 3/1/25(a) | | | 152,675 | |
| 320,000 | | | Quicken Loans, Inc., 5.25%, 1/15/28(a) | | | 299,200 | |
| 230,000(g) | | | Quintiles IMS, Inc., 3.25%, 3/15/25 | | | 283,243 | |
| 187,000 | | | Realogy Group LLC / Realogy Co-Issuer Corp., 4.88%, 6/1/23(a) | | | 179,053 | |
| 175,000 | | | RegionalCare Hospital Partners Holdings, Inc., 8.25%, 5/1/23(a) | | | 182,000 | |
| 402,000 | | | Resolute Forest Products, Inc., 5.88%, 5/15/23 | | | 409,537 | |
| 455,481 | | | Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu, 5.75%, 10/15/20 | | | 461,174 | |
| 390,000 | | | Rite Aid Corp., 6.13%, 4/1/23(a) | | | 392,925 | |
| 170,000 | | | Sabre GLBL, Inc., 5.25%, 11/15/23(a) | | | 171,751 | |
| 370,000 | | | SBA Communications Corp., 4.88%, 7/15/22 | | | 372,775 | |
| 150,000(g) | | | Scientific Games International, Inc., 5.50%, 2/15/26(a) | | | 174,077 | |
| 242,000 | | | Scientific Games International, Inc., 10.00%, 12/1/22 | | | 260,604 | |
| 100,000(g) | | | Sealed Air Corp., MTN, 4.50%, 9/15/23 | | | 138,055 | |
| 370,000 | | | Sirius XM Radio, Inc., 3.88%, 8/1/22(a) | | | 354,460 | |
| 383,000 | | | Sirius XM Radio, Inc., 5.00%, 8/1/27(a) | | | 360,020 | |
| 500,000 | | | Solera LLC / Solera Finance, Inc., 10.50%, 3/1/24(a) | | | 556,250 | |
| 90,000 | | | Southwestern Energy Co., 7.50%, 4/1/26 | | | 90,900 | |
| 90,000 | | | Southwestern Energy Co., 7.75%, 10/1/27 | | | 91,575 | |
| 390,000 | | | Springleaf Finance Corp., 6.88%, 3/15/25 | | | 391,462 | |
| 170,000 | | | Sprint Capital Corp., 8.75%, 3/15/32 | | | 177,650 | |
| 80,000 | | | Sprint Corp., 7.25%, 9/15/21 | | | 82,700 | |
| 280,000 | | | Station Casinos LLC, 5.00%, 10/1/25(a) | | | 266,000 | |
| 194,000 | | | Sunoco LP / Sunoco Finance Corp., 4.88%, 1/15/23(a) | | | 186,967 | |
| 107,000 | | | Sunoco LP / Sunoco Finance Corp., 5.50%, 2/15/26(a) | | | 103,255 | |
22
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay High Yield Bond Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | |
Principal | | | | | | |
Amount | | | | | Value | |
| | |
| $ 26,000 | | | Targa Resources Partners LP / Targa Resources Partners Finance Corp., 4.13%, 11/15/19 | | $ | 26,065 | |
| 94,000 | | | Targa Resources Partners LP / Targa Resources Partners Finance Corp., 5.13%, 2/1/25 | | | 93,530 | |
| 390,000 | | | Taylor Morrison Communities, Inc. / Taylor Morrison Holdings II, Inc., 5.25%, 4/15/21(a) | | | 393,381 | |
| 230,000 | | | Tenet Healthcare Corp., 5.13%, 5/1/25(a) | | | 221,087 | |
| 110,000 | | | Tenet Healthcare Corp., 7.00%, 8/1/25(a) | | | 108,213 | |
| 65,000 | | | Tenet Healthcare Corp., 8.13%, 4/1/22 | | | 67,763 | |
| 67,000 | | | T-Mobile USA, Inc., 4.75%, 2/1/28 | | | 64,404 | |
| 460,000 | | | T-Mobile USA, Inc., 6.63%, 4/1/23 | | | 475,240 | |
| 149,000 | | | United Rentals North America, Inc., 4.63%, 10/15/25 | | | 144,903 | |
| 150,000 | | | Valeant Pharmaceuticals International, 6.75%, 8/15/21(a) | | | 150,375 | |
| 90,000 | | | Valeant Pharmaceuticals International, Inc., 5.50%, 11/1/25(a) | | | 87,395 | |
| 237,390 | | | Valeant Pharmaceuticals International, Inc., 5.88%, 5/15/23(a) | | | 210,387 | |
| 180,000 | | | Valeant Pharmaceuticals International, Inc., 7.00%, 3/15/24(a) | | | 187,650 | |
| 231,000 | | | Valeant Pharmaceuticals International, Inc., 9.00%, 12/15/25(a) | | | 228,790 | |
| 100,000(h) | | | Vantiv LLC / Vanity Issuer Corp., 3.88%, 11/15/25(a) | | | 138,117 | |
| 200,000 | | | Vantiv LLC / Vanity Issuer Corp., 4.38%, 11/15/25(a) | | | 193,250 | |
| 381,000 | | | ViaSat, Inc., 5.63%, 9/15/25(a) | | | 366,827 | |
| 90,000 | | | West Corp., 8.50%, 10/15/25(a) | | | 87,075 | |
| 30,000 | | | WMG Acquisition Corp., 5.00%, 8/1/23(a) | | | 30,038 | |
| 199,000 | | | Zayo Group LLC / Zayo Capital, Inc., 5.75%, 1/15/27(a) | | | 194,522 | |
| 370,000 | | | Zayo Group LLC / Zayo Capital, Inc., 6.00%, 4/1/23 | | | 380,175 | |
| | | | | | | | |
| | | | | | | 27,268,437 | |
| | | | | | | | |
| |
| Zambia — 0.95% | | | | |
| 200,000 | | | First Quantum Minerals Ltd., 6.88%, 3/1/26(a) | | | 189,589 | |
| 190,000 | | | First Quantum Minerals Ltd., 7.00%, 2/15/21(a) | | | 190,369 | |
| | | | | | | | |
| | | | | | | 379,958 | |
| | | | | | | | |
| |
| Total Corporate Bonds | | | 36,336,914 | |
| | | | | | | | |
| (Cost $36,562,104) | | | | |
| |
| Bank Loans — 1.05% | | | | |
| United States — 1.05% | | | | |
| 203,000 | | | California Resources Corp., 1st Lien Term Loan, (LIBOR 1-Month + 5.75%), 6.57%, 12/31/22(e) | | | 205,728 | |
| 140,000 | | | Gavilan Resources LLC, 2nd Lien Term Loan, (LIBOR 1-Month + 7.000%), 7.79%, 3/1/24(e) | | | 140,088 | |
| 57,932 | | | Vertellus Holdings LLC, 1st Lien Term Loan, (LIBOR 1-Month + 9.000%), 10.88%, 4/30/18(c),(d),(e) | | | 57,179 | |
| 15,981 | | | Vertellus Holdings LLC , 2nd Lien Term Loan, (LIBOR 1-Month + 12.000%), 13.88%, 10/29/21(c),(d),(e) | | | 15,982 | |
| 16,231 | | | Vertellus Specialties, Inc., Term Loan, (LIBOR 1-Month ), 0.00%, 12/31/49(c),(d),(e) | | | 0 | |
| | | | | | | | |
| | | | | | | 418,977 | |
| | | | | | | | |
| Total Bank Loans | | | 418,977 | |
| | | | | | | | |
| (Cost $421,864) | | | | | | | |
23
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay High Yield Bond Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | |
Shares | | | | | Value | |
| | |
| Common Stocks — 0.68% | | | | |
| Italy — 0.06% | | | | |
| 7,620 | | | Italiaonline SpA | | $ | 26,816 | |
| | | | | | | | |
| United States — 0.62% | | | | |
| 12,576 | | | Cleveland-Cliffs, Inc.* | | | 87,403 | |
| 2,271 | | | T-Mobile US, Inc.* | | | 138,622 | |
| 12,785 | | | Valencia Bidco LLC*,(c),(d) | | | 20,833 | |
| | | | | | | | |
| | | | | | | 246,858 | |
| | | | | | | | |
| Total Common Stocks | | | 273,674 | |
| | | | | | | | |
| (Cost $279,372) | | | | | | | |
| Rights/Warrants — 0.00% | | | | |
| Australia — 0.00% | | | | |
| 48,100 | | | Quintis Ltd., Warrants, Expire 7/15/18*,(c) | | | 0 | |
| | | | | | | | |
| Mexico — 0.00% | | | | |
| 3,026 | | | Urbi Desarrollos Urbanos SAB de CV Warrants, Expire 12/31/49*,(c),(d) | | | 521 | |
| | | | | | | | |
| |
| Total Rights/Warrants | | | 521 | |
| | | | | | | | |
| (Cost $0) | | | | | | | |
| |
| Investment Company — 3.01% | | | | |
| 1,203,352 | | | JPMorgan 100% US Treasury Securities Money Market Fund, Capital Shares | | | 1,203,352 | |
| | | | | | | | |
| Total Investment Company | | | 1,203,352 | |
| | | | | | | | |
| (Cost $1,203,352) | | | | |
| |
| Total Investments | | $ | 38,233,438 | |
| (Cost $38,466,692)(i) — 95.65% | | | | |
| |
| Other assets in excess of liabilities — 4.35% | | | 1,737,636 | |
| | | | | | | | |
| |
| NET ASSETS — 100.00% | | $ | 39,971,074 | |
| | | | | | | | |
|
| | |
24
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay High Yield Bond Fund (cont.)
March 31, 2018 (Unaudited)
(a) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(b) | Issuer filed for bankruptcy and/or is in default of interest payments. |
(c) | The Pricing Committee has fair valued this security under procedures established by the Fund’s Board of Trustees. |
(d) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(e) | Variable rate security. The rate reflected in the Schedule of Portfolio Investments is the rate in effect on March 31, 2018. |
(f) | Investment in non-U.S. Dollars. Principal amount reflects local currency. |
(g) | Principal amount denoted in Euros. |
(h) | Principal amount denoted in British Pounds. |
(i) | See Notes to Financial Statements for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
* | Non-income producing security. |
Foreign currency exchange contracts as of March 31, 2018:
| | | | | | | | | | | | | | | | | | |
Currency Purchased | | | Currency Sold | | | Counterparty | | Settlement Date | | | Value/Unrealized Appreciation |
USD | | | 124,905 | | | EUR | | | 100,000 | | | Citibank N.A. | | | 6/27/18 | | | $ 1,008 |
USD | | | 4,367,427 | | | EUR | | | 3,517,000 | | | Citibank N.A. | | | 6/27/18 | | | 9,958 |
USD | | | 249,318 | | | EUR | | | 200,000 | | | Citibank N.A. | | | 6/27/18 | | | 1,523 |
USD | | | 1,437,800 | | | GBP | | | 1,020,000 | | | Citibank N.A. | | | 6/27/18 | | | 1,140 |
Total | | | | | | | | | | | | | | | | | | $ 13,629 |
Financial futures contracts as of March 31, 2018:
| | | | | | | | | | | | | | | | | | | | | | | | |
Short Position | | Number of Contracts | | | | | Expiration Date | | | | Value/Unrealized Depreciation | | | | | Notional Value | | | | | Clearinghouse |
Five Year U.S. Treasury Notes | | | 18 | | | | | June 2018 | | | | | $(5,829) | | | | | | USD $2,052,503 | | | | | Citigroup Global Markets, Inc. |
Ten Year U.S. Treasury Notes | | | 1 | | | | | June 2018 | | | | | (1,299) | | | | | | USD 119,842 | | | | | Citigroup Global Markets, Inc. |
Total | | | | | | | | | | | | | $(7,128) | | | | | | | | | | | |
25
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay High Yield Bond Fund (cont.)
March 31, 2018 (Unaudited)
Credit default swaps sell protection as of March 31, 2018:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Rate | | Issuer | | Payment Frequency | | Counterparty | | Expiration Date | | | ICS* | | | Notional Amount (000)(a) | | | Premium Paid/ (Received) | | | Value/ Unreal. App. (Dep.) | | | Value | |
5.00% | | High Yield CDX Index, Series 29 | | Quarterly | | Citigroup Global Markets Inc. | | | 12/20/22 | | | | 0.034 | | | | USD 1,320 | | | $ | 80,906 | | | $ | 7,243 | | | $ | 88,149 | |
5.00% | | High Yield CDX Index, Series 29 | | Quarterly | | Citigroup Global Markets Inc. | | | 12/20/22 | | | | 0.034 | | | | USD 1,880 | | | | 120,249 | | | | 5,296 | | | | 125,545 | |
5.00% | | High Yield CDX Index, Series 29 | | Quarterly | | Citigroup Global Markets Inc. | | | 12/20/22 | | | | 0.034 | | | | USD 800 | | | | 53,999 | | | | (576) | | | | 53,423 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | $ | 255,154 | | | $ | 11,963 | | | $ | 267,117 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) | The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement. |
* | Implied Credit Spread (“ICS”), represented in absolute terms, utilized in determining the value of the credit default swap agreements as of period end will serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default or other credit event for the credit derivative. The implied credit spread of a referenced entity reflects the cost of buying/ selling protection and may include upfront payments required to be made to enter into the agreement. Generally, wider credit spreads represent a perceived deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the swap agreement. |
Abbreviations used are defined below:
EUR - Euro
GBP - United Kingdom Pound Sterling
LIBOR - London Interbank Offered Rate
MTN - Medium Term Note
USD - United States Dollar
26
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay High Yield Bond Fund (cont.)
March 31, 2018 (Unaudited)
Portfolio Diversification (Unaudited)
| | | | |
Industries | | Percentage of Net Assets | |
Communications | | | 22.32% | |
Financial | | | 17.79% | |
Consumer, Cyclical | | | 11.63% | |
Consumer, Non-cyclical | | | 11.63% | |
Energy | | | 9.16% | |
Basic Materials | | | 7.97% | |
Industrial | | | 7.09% | |
Technology | | | 4.62% | |
Diversified | | | 0.43% | |
Other* | | | 7.36% | |
| | | 100.00% | |
* Includes cash, Investment Company, interest and dividend receivable, pending trades and Fund share transactions, warrants, credit default swaps, financial futures contracts, foreign currency exchange contracts and accrued expenses payable.
See Notes to the Financial Statements.
27
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Diversified Credit Fund
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
Foreign Governnment Bonds — 48.73% | |
Argentina — 3.90% | |
7,688,787(a) | | Argentina POM Politica Monetaria, (Argentina Central Bank 7D Repo Reference Rate), 27.93%, 6/21/20(b) | | $ | 409,015 | |
7,902,776(a) | | Argentine Bonos del Tesoro, 18.20%, 10/3/21 | | | 393,314 | |
$ 345,000 | | Argentine Republic Government International Bond, 4.63%, 1/11/23 | | | 332,288 | |
830,000 | | Argentine Republic Government International Bond, 5.88%, 1/11/28 | | | 781,652 | |
360,000(c) | | Argentine Republic Government International Bond, 6.06%, 12/15/35(d),(e) | | | 37,430 | |
515,000 | | Argentine Republic Government International Bond, 6.88%, 1/11/48 | | | 468,444 | |
349,922 | | Argentine Republic Government International Bond, 13.24%, 12/15/35(e) | | | 28,694 | |
330,000 | | Province of Jujuy Argentina, 8.63%, 9/20/22 | | | 341,164 | |
150,000 | | Provincia de Cordoba, 7.13%, 6/10/21 | | | 157,327 | |
| | | | | | |
| | | | | 2,949,328 | |
| | | | | | |
Armenia — 0.42% | |
290,000 | | Republic of Armenia International Bond, 7.15%, 3/26/25 | | | 320,088 | |
| | | | | | |
Azerbaijan — 0.57% | |
260,000 | | Republic of Azerbaijan International Bond, 3.50%, 9/1/32 | | | 217,896 | |
215,000 | | Republic of Azerbaijan International Bond, 4.75%, 3/18/24 | | | 216,014 | |
| | | | | | |
| | | | | 433,910 | |
| | | | | | |
Bahamas — 0.89% | |
645,000 | | Bahamas Government International Bond, 6.00%, 11/21/28 | | | 670,048 | |
| | | | | | |
Belarus — 1.14% | |
503,000 | | Republic of Belarus International Bond, 6.88%, 2/28/23 | | | 532,091 | |
303,000 | | Republic of Belarus International Bond, 7.63%, 6/29/27 | | | 333,034 | |
| | | | | | |
| | | | | 865,125 | |
| | | | | | |
Bolivia — 1.12% | |
900,000 | | Bolivian Government International Bond, 4.50%, 3/20/28 | | | 848,250 | |
| | | | | | |
Brazil — 2.47% | |
4,628,000(a) | | Brazil Notas do Tesouro Nacional Series F, 10.00%, 1/1/23 | | | 1,498,825 | |
200,000 | | Brazilian Government International Bond, 5.00%, 1/27/45 | | | 179,827 | |
200,000 | | Brazilian Government International Bond, 5.63%, 2/21/47 | | | 194,399 | |
| | | | | | |
| | | | | 1,873,051 | |
| | | | | | |
Chile — 1.12% | |
430,000,000(a) | | Bonos de la Tesoreria de la Republica en pesos, 4.50%, 3/1/26 | | | 713,422 | |
80,000,000(a) | | Bonos de la Tesoreria de la Republica en pesos, 5.00%, 3/1/35 | | | 131,719 | |
| | | | | | |
| | | | | 845,141 | |
| | | | | | |
28
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Diversified Credit Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
Colombia — 1.77% | |
506,000,000(a) | | Colombian TES, 7.00%, 6/30/32 | | $ | 182,545 | |
2,689,600,000(a) | | Colombian TES, 10.00%, 7/24/24 | | | 1,154,901 | |
| | | | | | |
| | | | | 1,337,446 | |
| | | | | | |
Costa Rica — 0.88% | |
$ 230,000 | | Costa Rica Government International Bond, 4.38%, 4/30/25 | | | 217,829 | |
425,000 | | Costa Rica Government International Bond, 7.16%, 3/12/45 | | | 446,321 | |
| | | | | | |
| | | | | 664,150 | |
| | | | | | |
Dominican Republic — 0.94% | |
215,000 | | Dominican Republic International Bond, 5.95%, 1/25/27 | | | 226,261 | |
309,000 | | Dominican Republic International Bond, 6.50%, 2/15/48 | | | 320,866 | |
155,000 | | Dominican Republic International Bond, 6.85%, 1/27/45 | | | 167,477 | |
| | | | | | |
| | | | | 714,604 | |
| | | | | | |
Ecuador — 2.73% | |
1,240,000 | | Ecuador Government International Bond, 7.88%, 1/23/28 | | | 1,190,400 | |
225,000 | | Ecuador Government International Bond, 7.95%, 6/20/24 | | | 225,844 | |
200,000 | | Ecuador Government International Bond, 8.88%, 10/23/27 | | | 203,657 | |
400,000 | | Ecuador Government International Bond, 10.75%, 3/28/22 | | | 443,052 | |
| | | | | | |
| | | | | 2,062,953 | |
| | | | | | |
Egypt — 0.92% | |
390,000 | | Egypt Government International Bond, 5.58%, 2/21/23 | | | 395,602 | |
285,000 | | Egypt Government International Bond, 7.90%, 2/21/48 | | | 299,704 | |
| | | | | | |
| | | | | 695,306 | |
| | | | | | |
El Salvador — 1.18% | |
192,000 | | El Salvador Government International Bond, 5.88%, 1/30/25 | | | 188,160 | |
317,000 | | El Salvador Government International Bond, 6.38%, 1/18/27 | | | 314,887 | |
210,000 | | El Salvador Government International Bond, 7.65%, 6/15/35 | | | 220,894 | |
145,000 | | El Salvador Government International Bond, 8.63%, 2/28/29 | | | 166,931 | |
| | | | | | |
| | | | | 890,872 | |
| | | | | | |
Gabon — 0.57% | |
435,000 | | Gabon Government International Bond, 6.38%, 12/12/24 | | | 430,237 | |
| | | | | | |
Ghana — 0.29% | |
200,000 | | Ghana Government International Bond, 7.88%, 8/7/23 | | | 218,141 | |
| | | | | | |
Honduras — 0.58% | |
400,000 | | Honduras Government International Bond, 7.50%, 3/15/24 | | | 441,800 | |
| | | | | | |
Hungary — 0.26% | |
47,090,000(a) | | Hungary Government Bond, 3.00%, 10/27/27 | | | 194,861 | |
| | | | | | |
29
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Diversified Credit Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
Indonesia — 2.32% | |
2,839,000,000(a) | | Indonesia Treasury Bond, 6.13%, 5/15/28 | | $ | 196,496 | |
568,000,000(a) | | Indonesia Treasury Bond, 7.00%, 5/15/27 | | | 41,637 | |
9,813,000,000(a) | | Indonesia Treasury Bond, 7.50%, 5/15/38 | | | 719,526 | |
4,411,000,000(a) | | Indonesia Treasury Bond, 8.25%, 5/15/36 | | | 345,836 | |
1,412,000,000(a) | | Indonesia Treasury Bond, 8.38%, 3/15/24 | | | 111,255 | |
1,679,000,000(a) | | Indonesia Treasury Bond, 8.75%, 5/15/31 | | | 137,503 | |
2,445,000,000(a) | | Indonesia Treasury Bond, 9.00%, 3/15/29 | | | 202,677 | |
| | | | | | |
| | | | | 1,754,930 | |
| | | | | | |
Iraq — 0.90% | |
$ 710,000 | | Iraq International Bond, 5.80%, 1/15/28 | | | 681,185 | |
| | | | | | |
Ivory Coast — 0.29% | |
230,000 | | Ivory Coast Government International Bond, 6.13%, 6/15/33 | | | 218,717 | |
| | | | | | |
Jamaica — 0.29% | |
200,000 | | Jamaica Government International Bond, 6.75%, 4/28/28 | | | 221,733 | |
| | | | | | |
Kenya — 0.99% | |
480,000 | | Kenya Government International Bond, 7.25%, 2/28/28 | | | 500,947 | |
230,000 | | Kenya Government International Bond, 8.25%, 2/28/48 | | | 245,835 | |
| | | | | | |
| | | | | 746,782 | |
| | | | | | |
Malaysia — 1.61% | |
3,599,000(a) | | Malaysia Government Bond, 3.80%, 8/17/23 | | | 929,754 | |
302,000(a) | | Malaysia Government Bond, 3.84%, 4/15/33 | | | 72,967 | |
344,000(a) | | Malaysia Government Bond, 3.88%, 3/10/22 | | | 89,979 | |
493,000(a) | | Malaysia Government Bond, 3.96%, 9/15/25 | | | 127,412 | |
| | | | | | |
| | | | | 1,220,112 | |
| | | | | | |
Mexico — 1.93% | |
3,610,000(a) | | Mexican Bonos, 5.75%, 3/5/26 | | | 180,480 | |
12,150,000(a) | | Mexican Bonos, 6.50%, 6/10/21 | | | 654,833 | |
1,820,000(a) | | Mexican Bonos, 7.75%, 11/13/42 | | | 101,522 | |
4,310,000(a) | | Mexican Bonos, 10.00%, 12/5/24 | | | 271,391 | |
3,760,000(a) | | Mexican Bonos, 10.00%, 11/20/36 | | | 256,248 | |
| | | | | | |
| | | | | 1,464,474 | |
| | | | | | |
Mongolia — 0.87% | |
205,000 | | Mongolia Government International Bond, 5.63%, 5/1/23 | | | 202,035 | |
200,000 | | Mongolia Government International Bond, MTN, 8.75%, 3/9/24 | | | 224,842 | |
200,000 | | Mongolia Government International Bond, MTN, 10.88%, 4/6/21 | | | 230,166 | |
| | | | | | |
| | | | | 657,043 | |
| | | | | | |
Nigeria — 2.95% | |
61,641,000(a) | | Nigeria Government Bond, 16.29%, 3/17/27 | | | 193,106 | |
30
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Diversified Credit Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | |
Principal | | | | | | |
Amount | | | | | Value | |
| | |
| $ 225,000 | | | Nigeria Government International Bond, MTN, 6.50%, 11/28/27 | | $ | 228,124 | |
| 210,000 | | | Nigeria Government International Bond, 6.75%, 1/28/21 | | | 221,027 | |
| 200,000 | | | Nigeria Government International Bond, 7.14%, 2/23/30 | | | 207,478 | |
| 220,000 | | | Nigeria Government International Bond, MTN, 7.63%, 11/28/47 | | | 227,461 | |
| 280,000 | | | Nigeria Government International Bond, 7.70%, 2/23/38 | | | 294,097 | |
| 230,000 | | | Nigeria Government International Bond, 7.88%, 2/16/32 | | | 250,306 | |
| 93,976,000(a) | | | Nigeria OMO Bill, 14.71%, 5/24/18(e) | | | 255,959 | |
| 133,223,000(a) | | | Nigeria Treasury Bill, 14.90%, 8/2/18(e) | | | 353,019 | |
| | | | | | | | |
| | | | | | | 2,230,577 | |
| | | | | | | | |
| Peru — 0.77% | | | | |
| 359,000(a) | | | Peru Government Bond, 6.15%, 8/12/32(f) | | | 122,112 | |
| 648,000(a) | | | Peruvian Government International Bond, 6.35%, 8/12/28 | | | 225,510 | |
| 114,000(a) | | | Peruvian Government International Bond, 6.95%, 8/12/31 | | | 41,556 | |
| 500,000(a) | | | Peruvian Government International Bond, 8.20%, 8/12/26 | | | 193,953 | |
| | | | | | | | |
| | | | | | | 583,131 | |
| | | | | | | | |
| Poland — 0.81% | | | | |
| 1,118,000(a) | | | Republic of Poland Government Bond, 2.50%, 7/25/27 | | | 310,482 | |
| 1,072,000(a) | | | Republic of Poland Government Bond, 2.75%, 4/25/28 | | | 301,763 | |
| | | | | | | | |
| | | | | | | 612,245 | |
| | | | | | | | |
| Romania — 0.42% | | | | |
| 490,000(a) | | | Romania Government Bond, 4.75%, 2/24/25 | | | 133,259 | |
| 650,000(a) | | | Romania Government Bond, 5.80%, 7/26/27 | | | 188,279 | |
| | | | | | | | |
| | | | | | | 321,538 | |
| | | | | | | | |
| Russia — 1.94% | | | | |
| 8,602,000(a) | | | Russian Federal Bond - OFZ, 7.00%, 8/16/23 | | | 153,881 | |
| 4,187,000(a) | | | Russian Federal Bond - OFZ, 7.05%, 1/19/28 | | | 73,655 | |
| 12,291,000(a) | | | Russian Federal Bond - OFZ, 7.50%, 8/18/21 | | | 221,601 | |
| 5,358,000(a) | | | Russian Federal Bond - OFZ, 7.70%, 3/23/33 | | | 97,666 | |
| 46,273,000(a) | | | Russian Federal Bond - OFZ, 7.75%, 9/16/26 | | | 853,548 | |
| 3,508,000(a) | | | Russian Federal Bond - OFZ, 8.15%, 2/3/27 | | | 66,471 | |
| | | | | | | | |
| | | | | | | 1,466,822 | |
| | | | | | | | |
| South Africa — 4.81% | | | | |
| 600,089(a) | | | Republic of South Africa Government Bond, 6.25%, 3/31/36 | | | 39,355 | |
| 5,427,594(a) | | | Republic of South Africa Government Bond, 7.00%, 2/28/31 | | | 406,196 | |
| 1,545,407(a) | | | Republic of South Africa Government Bond, 8.50%, 1/31/37 | | | 126,781 | |
| 1,113,172(a) | | | Republic of South Africa Government Bond, 8.75%, 1/31/44 | | | 92,454 | |
| 6,293,560(a) | | | Republic of South Africa Government Bond, 8.75%, 2/28/48 | | | 524,483 | |
| 18,779,384(a) | | | Republic of South Africa Government Bond, 10.50%, 12/21/26 | | | 1,831,374 | |
| 500,000 | | | Republic of South Africa Government International Bond, 4.85%, 9/27/27 | | | 493,516 | |
| 120,000 | | | Republic of South Africa Government International Bond, 6.25%, 3/8/41 | | | 128,578 | |
| | | | | | | | |
| | | | | | | 3,642,737 | |
| | | | | | | | |
31
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Diversified Credit Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | |
Principal | | | | | | |
Amount | | | | | Value | |
| | |
| Sri Lanka — 0.30% | | | | |
| $ 220,000 | | | Sri Lanka Government International Bond, 6.00%, 1/14/19 | | $ | 223,868 | |
| | | | | | | | |
| |
| Thailand — 1.72% | | | | |
| 5,130,000(a) | | | Thailand Government Bond, 2.13%, 12/17/26 | | | 160,568 | |
| 5,067,000(a) | | | Thailand Government Bond, 3.40%, 6/17/36 | | | 167,434 | |
| 6,082,000(a) | | | Thailand Government Bond, 3.63%, 6/16/23 | | | 211,228 | |
| 18,927,000(a) | | | Thailand Government Bond, 3.65%, 12/17/21 | | | 649,991 | |
| 3,294,000(a) | | | Thailand Government Bond, 3.65%, 6/20/31 | | | 113,751 | |
| | | | | | | | |
| | | | 1,302,972 | |
| | | | | | | | |
| Tunisia — 0.60% | | | | |
| 180,000(c) | | | Banque Centrale de Tunisie International Bond, 5.63%, 2/17/24 | | | 226,403 | |
| 240,000 | | | Banque Centrale de Tunisie International Bond, 5.75%, 1/30/25 | | | 228,320 | |
| | | | | | | | |
| | | | 454,723 | |
| | | | | | | | |
| Turkey — 3.00% | | | | |
| 3,979,919(a) | | | Turkey Government Bond, 10.50%, 8/11/27 | | | 909,915 | |
| 1,043,375(a) | | | Turkey Government Bond, 10.60%, 2/11/26 | | | 240,857 | |
| 918,080(a) | | | Turkey Government Bond, 10.70%, 2/17/21 | | | 217,103 | |
| 2,165,366(a) | | | Turkey Government Bond, 11.00%, 3/2/22 | | | 511,251 | |
| 291,536(a) | | | Turkey Government Bond, 11.00%, 2/24/27 | | | 68,611 | |
| 400,000 | | | Turkey Government International Bond, 4.88%, 4/16/43 | | | 322,551 | |
| | | | | | | | |
| | | | 2,270,288 | |
| | | | | | | | |
| Ukraine — 0.29% | | | | |
| 210,000 | | | Ukraine Government International Bond, 7.75%, 9/1/23 | | | 217,542 | |
| | | | | | | | |
| Uruguay — 0.17% | | | | |
| 3,704,000(a) | | | Uruguay Government International Bond, 9.88%, 6/20/22 | | | 132,202 | |
| | | | | | | | |
| |
| Total Foreign Governnment Bonds (Cost $37,001,190) | | | 36,878,932 | |
| | | | | | | | |
| |
| Corporate Bonds — 25.31% | | | | |
| Argentina — 0.30% | | | | |
| 230,000 | | | Agua y Saneamientos Argentinos SA, 6.63%, 2/1/23 | | | 223,775 | |
| | | | | | | | |
| |
| Australia — 0.21% | | | | |
| 190,000 | | | Quintis Ltd., 8.75%, 8/1/23(f),(g),(h) | | | 161,500 | |
| | | | | | | | |
| |
| Austria — 1.14% | | | | |
| 400,000(a) | | | Erste Group Bank AG, (5 Year EUR Swap + 6.204%), 6.50%, 10/15/66(b) | | | 561,314 | |
| 200,000(a) | | | Erste Group Bank AG, (5 Year EUR Swap + 9.020%), 8.88%, 10/15/66(b) | | | 298,334 | |
| | | | | | | | |
| | | | 859,648 | |
| | | | | | | | |
32
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Diversified Credit Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | |
Principal | | | | | | |
Amount | | | | | Value | |
| | |
| Azerbaijan — 0.49% | | | | |
| $ 340,000 | | | Southern Gas Corridor CJSC, 6.88%, 3/24/26 | | $ | 374,068 | |
| | | | | | | | |
| Bahrain — 0.39% | | | | |
| 295,000 | | | CBB International Sukuk Co. SPC, 6.88%, 10/5/25 | | | 297,213 | |
| | | | | | | | |
| Brazil — 0.77% | | | | |
| 86,000 | | | Petrobras Global Finance BV, 5.63%, 5/20/43 | | | 74,980 | |
| 475,000 | | | Petrobras Global Finance BV, 5.75%, 2/1/29 | | | 458,518 | |
| 44,000 | | | Petrobras Global Finance BV, 7.38%, 1/17/27 | | | 47,674 | |
| | | | | | | | |
| | | | | | | 581,172 | |
| | | | | | | | |
| Colombia — 0.61% | | | | |
| 470,000 | | | Ecopetrol SA, 5.88%, 5/28/45 | | | 464,276 | |
| | | | | | | | |
| France — 1.72% | | | | |
| 200,000 | | | BNP Paribas SA, (USD Swap Semi 30/360 5 Year + 4.916%), 6.75%, 3/14/67(b) | | | 208,941 | |
| 180,000(i) | | | Credit Agricole SA, (5 Year GBP Swap + 4.535%), 7.50%, 6/23/66(b) | | | 290,860 | |
| 200,000 | | | Credit Agricole SA, (USD Swap Semi 30/360 5 Year + 6.185%), 8.13%, 3/23/67(b) | | | 227,823 | |
| 320,000 | | | Societe Generale SA, (USD Swap Semi 30/360 5 Year + 4.979%), 7.88%, 6/18/66(b) | | | 346,722 | |
| 200,000 | | | Societe Generale SA, (USD ICE Swap Rate 11:00 am NY 5 + 5.873%), 8.00%, 3/29/67(b) | | | 223,377 | |
| | | | | | | | |
| | | | | | | 1,297,723 | |
| | | | | | | | |
| India — 0.21% | | | | |
| 10,000,000(a) | | | HDFC Bank Ltd., 8.10%, 3/22/25 | | | 155,010 | |
| | | | | | | | |
| Italy — 3.34% | | | | |
| 1,100,000(a) | | | Intesa Sanpaolo SpA, (5 Year EUR Swap + 7.192%), 7.75%, 7/11/66(b) | | | 1,648,784 | |
| 600,000(a) | | | UniCredit SpA, (5 Year EUR Swap + 9.300%), 9.25%, 6/3/66(b) | | | 881,473 | |
| | | | | | | | |
| | | | | | | 2,530,257 | |
| | | | | | | | |
| Mexico — 0.97% | | | | |
| 1,460,000(a) | | | Comision Federal de Electricidad, 8.18%, 12/23/27 | | | 77,539 | |
| 370,000 | | | Petroleos Mexicanos, 5.35%, 2/12/28 | | | 364,317 | |
| 305,000 | | | Petroleos Mexicanos, 6.35%, 2/12/48 | | | 294,706 | |
| | | | | | | | |
| | | | | | | 736,562 | |
| | | | | | | | |
| Mongolia — 0.28% | | | | |
| 200,000 | | | Trade & Development Bank of Mongolia LLC, MTN, 9.38%, 5/19/20 | | | 214,563 | |
| | | | | | | | |
33
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Diversified Credit Fund (cont.)
March 31, 2017 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
Netherlands — 1.81% | | | | |
910,000(a) | | Stichting AK Rabobank Certificaten, 6.50%, 3/29/67 | | | $1,366,887 | |
| | | | | | �� |
| |
Pakistan — 0.54% | | | | |
$ 420,000 | | Third Pakistan International Sukuk Co. Ltd. (The), 5.63%, 12/5/22 | | | 405,385 | |
| | | | | | |
| |
Peru — 0.56% | | | | |
425,000 | | Petroleos del Peru SA, 5.63%, 6/19/47 | | | 422,783 | |
| | | | | | |
| |
South Africa — 0.10% | | | | |
1,000,000(a) | | Eskom Holdings SOC Ltd., MTN, 7.85%, 4/2/26 | | | 78,156 | |
| | | | | | |
| |
Spain — 5.40% | | | | |
400,000(a) | | Banco Bilbao Vizcaya Argentaria SA, (5 Year EUR Swap + 5.779%), 5.88%, 8/24/66(b) | | | 529,965 | |
200,000(a) | | Banco Bilbao Vizcaya Argentaria SA, (5 Year EUR Swap + 9.177%), 8.88%, 7/14/66(b) | | | 290,832 | |
300,000(a) | | Banco Santander SA, (5 Year EUR Swap + 5.640%), 6.25%, 12/11/66(b) | | | 406,707 | |
300,000(a) | | Banco Santander SA, (5 Year EUR Swap + 6.803%), 6.75%, 7/25/66(b) | | | 414,033 | |
600,000(a) | | Bankia SA, (5 Year EUR Swap + 5.819%), 6.00%, 10/18/66(b) | | | 775,415 | |
1,200,000(a) | | CaixaBank SA, (5 Year EUR Swap + 6.498%), 6.75%, 9/13/66(b) | | | 1,666,056 | |
| | | | | | |
| | | | | 4,083,008 | |
| | | | | | |
| |
Switzerland — 0.37% | | | | |
270,000 | | Credit Suisse Group AG, (USD Swap Semi 30/360 5 Year + 5.108%), 7.13%, 7/29/66(b) | | | 282,746 | |
| | | | | | |
| |
Ukraine — 0.37% | | | | |
270,000 | | State Savings Bank of Ukraine Via SSB #1 Plc, STEP, 9.38%, 3/10/23(j) | | | 283,044 | |
| | | | | | |
| |
United Kingdom — 5.73% | | | | |
500,000(a) | | Barclays Plc, (5 Year GBP Swap + 6.462%), 7.25%, 6/15/66(b) | | | 747,181 | |
350,000(c) | | HSBC Holdings Plc, (5 Year EUR Swap + 3.844%), 4.75%, 1/4/67(b) | | | 446,866 | |
350,000 | | HSBC Holdings Plc, (USD ICE Swap Rate 11:00 am NY 5 + 3.746%), 6.00%, 11/22/66(b) | | | 343,875 | |
12,274,304(k) | | ICBC Standard Bank Plc, EMTN, 17.24%, 7/12/18(e) | | | 663,752 | |
34
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Diversified Credit Fund (cont.)
March 31, 2017 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
390,000(a) | | Lloyds Banking Group Plc, (5 Year GBP Swap + 4.830%), 7.88%, 6/27/66(b) | | $ | 658,378 | |
700,000(a) | | Nationwide Building Society, 10.25%, 6/20/66(d) | | | 1,473,147 | |
| | | | | | |
| | | | | 4,333,199 | |
| | | | | | |
Total Corporate Bonds | | | 19,150,975 | |
| | | | | | |
(Cost $18,761,111) | | | | |
| |
Convertible Bonds — 15.64% | | | | |
China — 2.96% | | | | |
5,000,000(a) | | China Railway Construction Corp. Ltd., 1.50%, 12/21/21 | | | 743,642 | |
$ 600,000 | | Ctrip.com International Ltd., 1.99%, 7/1/25 | | | 692,760 | |
775,000 | | Shanghai Port Group BVI Holding Co. Ltd., 0.00%, 8/9/21(e) | | | 807,550 | |
| | | | | 2,243,952 | |
| | | | | | |
France — 0.15% | | | | |
301,200(a) | | Genfit, 3.50%, 10/16/22 | | | 111,925 | |
| | | | | | |
| |
Hong Kong — 2.19% | | | | |
760,000 | | Bagan Capital Ltd., 0.93%, 9/23/21(e) | | | 741,380 | |
600,000 | | China Overseas Finance Investment Cayman V Ltd., 2.88%, 1/5/23(e) | | | 632,450 | |
285,000 | | PB Issuer No 4 Ltd., 3.25%, 7/3/21 | | | 285,689 | |
| | | | | | |
| | | | | 1,659,519 | |
| | | | | | |
| |
Malaysia — 1.92% | | | | |
562,000 | | Cahaya Capital Ltd., 0.84%, 9/18/21(e) | | | 574,411 | |
1,080,000(l) | | Indah Capital Ltd., 5.35%, 10/24/18(e) | | | 881,363 | |
| | | | | | |
| | | | | 1,455,774 | |
| | | | | | |
| |
Norway — 1.71% | | | | |
400,000(c) | | Marine Harvest ASA, 0.13%, 11/5/20 | | | 613,718 | |
680,000 | | Ship Finance International Ltd., 5.75%, 10/15/21 | | | 678,737 | |
| | | | | | |
| | | | | 1,292,455 | |
| | | | | | |
| |
United Kingdom — 3.68% | | | | |
400,000(a) | | BP Capital Markets Plc, 1.00%, 4/28/23 | | | 652,042 | |
300,000(a) | | Helical Bar Jersey Ltd., 4.00%, 6/17/19 | | | 424,966 | |
500,000(a) | | J Sainsbury Plc, (5 Year GBP Swap + 9.727%), 2.88%, 1/30/67(b) | | | 700,271 | |
300,000(a) | | Philippine Peso Finance Jersey Ltd., 4.25%, 5/20/19 | | | 477,931 | |
500,000 | | Premier Oil Finance Jersey Ltd., MTN, 2.50%, 5/31/22 | | | 526,125 | |
| | | | | | |
| | | | | 2,781,335 | |
| | | | | | |
| |
United States — 3.03% | | | | |
497,000 | | BioMarin Pharmaceutical, Inc., 1.50%, 10/15/20 | | | 547,321 | |
515,000 | | Blackhawk Network Holdings, Inc., 1.50%, 1/15/22 | | | 568,109 | |
292,000 | | Exact Sciences Corp., 1.00%, 1/15/25 | | | 259,409 | |
250,000 | | II-VI, Inc., 0.25%, 9/1/22(f) | | | 275,500 | |
200,000 | | Lumentum Holdings, Inc., 0.25%, 3/15/24 | | | 252,942 | |
35
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Diversified Credit Fund (cont.)
March 31, 2017 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
$211,000 | | Sarepta Therapeutics, Inc., 1.50%, 11/15/24(f) | | $ | 262,951 | |
70,000 | | TESARO, Inc., 3.00%, 10/1/21 | | | 125,825 | |
| | | | | | |
| | | | | 2,292,057 | |
| | | | | | |
Total Convertible Bonds (Cost $11,399,385) | | | 11,837,017 | |
| | | | | | |
| | |
Shares | | | | | |
Investment Company — 7.04% | | | | |
5,324,527 | | JPMorgan 100% US Treasury Securities Money Market Fund, Capital Shares | | | 5,324,527 | |
| | | | | | |
Total Investment Company | | | 5,324,527 | |
| | | | | | |
(Cost $5,324,527) | | | | |
| |
Total Investments | | $ | 73,191,451 | |
(Cost $72,486,213)(m) — 96.72% | | | | |
| |
Other assets in excess of liabilities — 3.28% | | | 2,481,843 | |
| | | | | | |
| |
NET ASSETS — 100.00% | | $ | 75,673,294 | |
| | | | | | |
(a) | Investment in non-U.S. Dollars. Principal amount reflects local currency. |
(b) | Variable rate security. The rate reflected in the Schedule of Portfolio Investments is the rate in effect on March 31, 2018. |
(c) | Principal amount denoted in Euros. |
(d) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end. |
(e) | Zero Coupon Bond. The rate represents the yield at time of purchase. |
(f) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(g) | The Pricing Committee has fair valued this security under procedures established by the Fund’s Board of Trustees. |
(h) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(i) | Principal amount denoted in British Pounds. |
(j) | Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date. |
(k) | Principal amount denoted in Egyptian Pound. |
(l) | Principal amount denoted in Singapore Dollars. |
(m) | See Notes to Financial Statements for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
36
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Diversified Credit Fund (cont.)
March 31, 2018 (Unaudited)
Foreign currency exchange contracts as of March 31, 2018:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Currency Purchased | | | | Currency Sold | | Counterparty | | Settlement Date | | | | | | | Value/Unrealized Appreciation (Depreciation) | | | | |
COP | | 328,505,425 | | | | USD | | 114,838 | | Citigroup Global Markets Inc. | | 6/27/18 | | | | | | | | $ | 2,353 | | | | | |
EUR | | 64,000 | | | | USD | | 79,058 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 236 | | | | | |
HUF | | 179,557,222 | | | | USD | | 711,283 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 397 | | | | | |
IDR | | 17,335,225,459 | | | | USD | | 1,249,296 | | Citigroup Global Markets Inc. | | 6/27/18 | | | | | | | | | 4,745 | | | | | |
PEN | | 1,671,162 | | | | USD | | 513,887 | | Citigroup Global Markets Inc. | | 6/27/18 | | | | | | | | | 2,693 | | | | | |
PHP | | 3,271,177 | | | | USD | | 61,834 | | Citigroup Global Markets Inc. | | 6/27/18 | | | | | | | | | 256 | | | | | |
PLN | | 1,478,823 | | | | EUR | | 348,819 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 632 | | | | | |
RON | | 1,085,568 | | | | USD | | 286,638 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 334 | | | | | |
RUB | | 1,683,557 | | | | USD | | 29,000 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 78 | | | | | |
TRY | | 247,968 | | | | USD | | 61,000 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 189 | | | | | |
TRY | | 175,000 | | | | USD | | 43,047 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 137 | | | | | |
TRY | | 1,229,550 | | | | USD | | 300,000 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 3,408 | | | | | |
USD | | 891,841 | | | | EUR | | 719,000 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 1,019 | | | | | |
USD | | 10,178,027 | | | | EUR | | 8,207,000 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 9,775 | | | | | |
USD | | 18,603 | | | | EUR | | 15,000 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 18 | | | | | |
USD | | 61,982 | | | | EUR | | 50,000 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 34 | | | | | |
USD | | 5,822,582 | | | | GBP | | 4,129,000 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 6,925 | | | | | |
USD | | 834,211 | | | | JPY | | 87,511,016 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 6,724 | | | | | |
USD | | 162,856 | | | | THB | | 5,050,139 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 863 | | | | | |
USD | | 29,760 | | | | TRY | | 120,343 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 63 | | | | | |
USD | | 804,030 | | | | ZAR | | 9,611,941 | | Citibank N.A. | | 6/27/18 | | | | | | | | | 2,035 | | | | | |
USD | | 531,000 | | | | PEN | | 1,713,803 | | Citigroup Global Markets Inc. | | 6/27/18 | | | | | | | | | 1,239 | | | | | |
CNH | | 4,195,978 | | | | USD | | 655,222 | | Citibank N.A. | | 9/19/18 | | | | | | | | | 8,588 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | $ | 52,741 | | | | | |
| | | | | | | | | | |
USD | | 25,484 | | | | MYR | | 99,643 | | Citigroup Global Markets Inc. | | 4/27/18 | | | | | | | | $ | (289) | | | | | |
BRL | | 2,512,666 | | | | USD | | 766,562 | | Citigroup Global Markets Inc. | | 6/4/18 | | | | | | | | | (9,711) | | | | | |
BRL | | 2,338,562 | | | | USD | | 708,400 | | Citigroup Global Markets Inc. | | 6/4/18 | | | | | | | | | (3,992) | | | | | |
CZK | | 10,635,480 | | | | USD | | 518,333 | | Citibank N.A. | | 6/27/18 | | | | | | | | | (516) | | | | | |
CZK | | 7,094,180 | | | | USD | | 346,348 | | Citibank N.A. | | 6/27/18 | | | | | | | | | (949) | | | | | |
EUR | | 78,000 | | | | USD | | 97,721 | | Citibank N.A. | | 6/27/18 | | | | | | | | | (1,081) | | | | | |
GBP | | 50,000 | | | | USD | | 71,368 | | Citibank N.A. | | 6/27/18 | | | | | | | | | (943) | | | | | |
HUF | | 21,342,186 | | | | USD | | 85,157 | | Citibank N.A. | | 6/27/18 | | | | | | | | | (567) | | | | | |
JPY | | 22,000,000 | | | | USD | | 208,313 | | Citibank N.A. | | 6/27/18 | | | | | | | | | (286) | | | | | |
PLN | | 4,567,298 | | | | USD | | 1,337,992 | | Citibank N.A. | | 6/27/18 | | | | | | | | | (1,274) | | | | | |
RUB | | 10,439,729 | | | | USD | | 181,153 | | Citibank N.A. | | 6/27/18 | | | | | | | | | (844) | | | | | |
THB | | 3,401,177 | | | | USD | | 109,569 | | Citibank N.A. | | 6/27/18 | | | | | | | | | (470) | | | | | |
THB | | 10,921,203 | | | | USD | | 351,508 | | Citibank N.A. | | 6/27/18 | | | | | | | | | (1,188) | | | | | |
THB | | 3,577,202 | | | | USD | | 115,351 | | Citibank N.A. | | 6/27/18 | | | | | | | | | (605) | | | | | |
USD | | 739,711 | | | | CNH | | 4,705,000 | | Citibank N.A. | | 6/27/18 | | | | | | | | | (7,292) | | | | | |
USD | | 278,631 | | | | MXN | | 5,227,391 | | Citibank N.A. | | 6/27/18 | | | | | | | | | (4,877) | | | | | |
USD | | 46,000 | | | | MXN | | 850,968 | | Citibank N.A. | | 6/27/18 | | | | | | | | | (152) | | | | | |
USD | | 21,000 | | | | PLN | | 71,834 | | Citibank N.A. | | 6/27/18 | | | | | | | | | (24) | | | | | |
USD | | 24,000 | | | | RON | | 90,958 | | Citibank N.A. | | 6/27/18 | | | | | | | | | (45) | | | | | |
37
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Diversified Credit Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | | | | | | | |
Currency Purchased | | Currency Sold | | Counterparty | | Settlement Date | | Value/Unrealized Appreciation (Depreciation) | |
USD | | 846,529 | | SGD | | 1,113,000 | | Citibank N.A. | | 6/27/18 | | | $ (4,181) | |
USD | | 342,278 | | TRY | | 1,392,476 | | Citibank N.A. | | 6/27/18 | | | (1,334) | |
USD | | 232,954 | | TRY | | 946,800 | | Citibank N.A. | | 6/27/18 | | | (682) | |
USD | | 250,852 | | ZAR | | 3,017,400 | | Citibank N.A. | | 6/27/18 | | | (912) | |
USD | | 50,397 | | ZAR | | 617,000 | | Citibank N.A. | | 6/27/18 | | | (1,084) | |
USD | | 321,160 | | CLP | | 195,168,809 | | Citigroup Global Markets Inc. | | 6/27/18 | | | (1,911) | |
USD | | 33,000 | | COP | | 92,532,000 | | Citigroup Global Markets Inc. | | 6/27/18 | | | (10) | |
USD | | 242,093 | | IDR | | 3,352,864,266 | | Citigroup Global Markets Inc. | | 6/27/18 | | | (455) | |
USD | | 56,000 | | IDR | | 775,320,000 | | Citigroup Global Markets Inc. | | 6/27/18 | | | (87) | |
USD | | 152,068 | | INR | | 10,000,000 | | Citigroup Global Markets Inc. | | 6/27/18 | | | (35) | |
USD | | 659,877 | | TWD | | 19,041,750 | | Citigroup Global Markets Inc. | | 6/27/18 | | | (366) | |
ZAR | | 1,366,585 | | USD | | 115,740 | | Citibank N.A. | | 6/27/18 | | | (1,716) | |
USD | | 643,000 | | CNH | | 4,195,978 | | Citibank N.A. | | 9/19/18 | | | (20,810) | |
USD | | 402,000 | | OMR | | 156,620 | | Citibank N.A. | | 11/14/18 | | | (2,644) | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | $(71,332) | |
| | | | | | |
| | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | $(18,591) | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Financial futures contracts as of March 31, 2018:
| | | | | | | | | | | | | | | | | | | | | | |
Short Position | | Number of Contracts | | | | Expiration Date | | | | Value/Unrealized Depreciation | | | | Notional Value | | | | Clearinghouse |
90-Day Euro Dollar | | 23 | | | | March 2020 | | | | | | $(5,853) | | | | USD | | $5,583,532 | | | | Credit Suisse Securities (USA) LLC |
Ultra Ten Year U.S. Treasury Bonds | | 5 | | | | June 2018 | | | | | | (4,353) | | | | USD | | 644,944 | | | | Credit Suisse Securities (USA) LLC |
| | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | $(10,206) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Interest rate swaps as of March 31, 2018:
| | | | | | | | | | | | | | |
Fixed Rate | | Floating Rate | | Payment Frequency | | Counterparty | | Expiration Date | | Notional Amount (000) | | Value/Unrealized Appreciation (Depreciation) |
8.79% | | BRL-CDI | | Expiration | | Citigroup Global Markets, Inc. | | 1/4/21 | | BRL | | 19,116(a) | | $ 165,038 |
| | | | | | Citigroup Global | | | | | | | | |
7.92% | | BRL-CDI | | Expiration | | Markets, Inc. | | 1/4/21 | | BRL | | 782(a) | | 0 |
| | INR-MIBOR-OIS-COMPOUND | | | | | | | | | | |
6.69% | | -COMPOUND | | Expiration | | HSBC Securities | | 11/17/22 | | INR | | 71,121(a) | | 4,877 |
38
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Diversified Credit Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | | | | | | | | | | |
Fixed Rate | | Floating Rate | | Payment Frequency | | Counterparty | | Expiration Date | | Notional Amount (000) | | Value/Unrealized Appreciation (Depreciation) |
| | | | | | Citigroup Global | | | | | | | | | | | |
7.81% | | MXN-TIIE-Banxico | | Monthly | | Markets, Inc. | | 6/3/27 | | MXN | | 6,800(a) | | | $ | 4,774 | |
| | | | | | Citigroup Global | | | | | | | | | | | |
7.62% | | MXN-TIIE-Banxico | | Monthly | | Markets, Inc. | | 9/26/22 | | MXN | | 6,200(a) | | | | 3,167 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | 177,856 | |
| | | | | | Citigroup Global | | | | | | | | | | | |
6.90% | | BRL-CDI | | Expiration | | Markets, Inc. | | 1/2/19 | | BRL | | 51,442(a) | | | | (81,739) | |
| | HUF-BUBOR | | | | Citigroup Global | | | | | | | | | | | |
2.07% | | -Reuters | | Annually | | Markets, Inc. | | 3/21/28 | | HUF | | 80,187(a) | | | | (2,108) | |
| | | | | | Citigroup Global | | | | | | | | | | | |
2.16% | | USD-BBA-LIBOR | | Expiration | | Markets Inc. | | 3/5/20 | | USD | | 21,100(a) | | | | (5,729) | |
| | | | | | Citigroup Global | | | | | | | | | | | |
2.17% | | USD-BBA-LIBOR | | Annually | | Markets Inc. | | 3/2/20 | | USD | | 6,400(a) | | | | (3,886) | |
9.81% | | USD-BBA-LIBOR | | Annually | | BNP Paribas SA | | 3/20/28 | | USD | | 782(b) | | | | (6,081) | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (99,543) | |
| | | | | | | |
| | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | $ | 78,313 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
(a) The Counterparty pays the fixed rate on these swaps.
(b) The Fund pays the fixed rate on these swaps.
Credit default swaps sell protection as of March 31, 2018:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Rate | | Issuer | | Payment Frequency | | Counterparty | | | Expiration Date | | | ICS* | | | Notional Amount (000)(a) | | | Premium Paid/ (Received) | | | Value/ Unreal. App. (Dep.) | | | Value | |
1.00% | | ITraxx Senior Financials, Series 27 | | Quarterly | |
| Citigroup
Global Markets, Inc. |
| | | 6/20/22 | | | | 0.004 | | | | EUR2,500 | | | $ | 74,683 | | | | $(3,464) | | | $ | 71,219 | |
1.00% | | ITraxx Senior Financials, Series 27 | | Quarterly | |
| Citigroup
Global Markets, Inc. |
| | | 6/20/22 | | | | 0.004 | | | | EUR2,500 | | | | 71,305 | | | | 4,459 | | | | 75,764 | |
5.00% | | ITraxx Crossover, Series 29 | | Quarterly | |
| Citigroup
Global Markets, Inc. |
| | | 6/20/23 | | | | 0.028 | | | | EUR1,000 | | | | 122,543 | | | | 5,940 | | | | 128,483 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | $ | 268,531 | | | $ | 6,935 | | | $ | 275,466 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
39
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Diversified Credit Fund (cont.)
March 31, 2017 (Unaudited)
(a) | The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement. |
* | Implied Credit Spread (“ICS”), represented in absolute terms, utilized in determining the value of the credit default swap agreements as of period end will serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default or other credit event for the credit derivative. The implied credit spread of a referenced entity reflects the cost of buying/ selling protection and may include upfront payments required to be made to enter into the agreement. Generally, wider credit spreads represent a perceived deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the swap agreement. |
40
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Diversified Credit Fund (cont.)
March 31, 2017 (Unaudited)
|
Abbreviations used are defined below: |
BBA-LIBOR - British Bankers Association London Interbank Offered Rate |
BRL - Brazilian Real |
BRL-CDI - Brazil Cetip InterBank Deposit Rate |
CLP - Chilean Peso |
CNH - Chinese Yuan Renminbi |
COP - Colombian Peso |
CZK - Czech Koruna |
EUR - Euro |
GBP - United Kingdom Pound Sterling |
HUF - Hungarian Forint |
HUF-BUBOR - Budapest Interbank Offered Rate for Hungarian Forint |
IDR - Indonesian Rupiah |
INR - Indian Rupee |
INR-MIBOR-OIS-COMPOUND - Mumbai Interbank Offered Rate - Overnight Index Swap |
JPY - Japanese Yen |
LIBOR - London Interbank Offered Rate |
MTN - Medium Term Note |
MXN - Mexican Peso |
MXN-TIIE-Banxico - Mexican Interbank Equilibrium Interest Rate |
MYR - Malaysian Ringgit |
OMR - Omani Rial |
PEN - Peruvian Nuevo Sol |
PHP - Philippine Peso |
PLN - Polish Zloty |
RON - Romanian Leu |
RUB - Russian Ruble |
SGD - Singapore Dollar |
STEP - Step Coupon Bond |
THB - Thai Baht |
TRY - Turkish Lira |
TWD - Taiwan Dollar |
USD - United States Dollar |
ZAR - South African Rand |
41
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Bluebay Diversified Credit Fund (cont.)
March 31, 2017 (Unaudited)
Portfolio Diversification (Unaudited)
| | | | | |
| | Percentage |
Industries | | of Net Assets |
Foreign Governnment Bonds | | | | 48.73 | % |
Financial | | | | 26.04 | % |
Energy | | | | 4.86 | % |
Consumer, Non-cyclical | | | | 4.54 | % |
Industrial | | | | 2.62 | % |
Government | | | | 0.93 | % |
Communications | | | | 0.91 | % |
Utilities | | | | 0.50 | % |
Technology | | | | 0.34 | % |
Basic Materials | | | | 0.21 | % |
Other* | | | | 10.32 | % |
| | | | | |
| | | | 100.00 | % |
| | | | | |
* | Includes cash, Investment Company, interest and dividend receivable, pending trades and Fund share transactions, interest rate swaps, credit default swaps, financial futures contracts, foreign currency exchange contracts and accrued expenses payable. |
See Notes to the Financial Statements.
42
Statements of Assets and Liabilities
March 31, 2018 (Unaudited)
| | | | | | | | | | | | | | | | |
| | RBC BlueBay Emerging Market Debt Fund | | | RBC BlueBay High Yield Bond Fund | | | RBC BlueBay Diversified Credit Fund | |
Assets: | | | | | | | | | | | | | | | | |
Investments, at value (cost $20,201,675, $38,466,692 and $72,486,213, respectively) | | | | | | $ | 19,970,873 | | | $ | 38,233,438 | | | $ | 73,191,451 | |
Cash | | | | | | | 3,061 | | | | 3,179 | | | | 10,781 | |
Cash at broker for financial future contracts | | | | | | | 16,461 | | | | 27,962 | | | | 201,755 | |
Segregated cash for swap contracts | | | | | | | 7,440 | | | | 23,069 | | | | 741,994 | |
Cash at broker for forward foreign currency exchange contracts | | | | | | | — | | | | — | | | | 810,026 | |
Foreign currency, at value (cost $195,689, $535,336 and $1,033,054, respectively) | | | | | | | 195,258 | | | | 531,567 | | | | 1,027,526 | |
Interest and dividend receivable | | | | | | | 272,486 | | | | 561,514 | | | | 888,366 | |
Receivable from advisor | | | | | | | 9,185 | | | | 3,564 | | | | — | |
Receivable for capital shares issued | | | | | | | 50,000 | | | | 176,000 | | | | — | |
Receivable for investments sold | | | | | | | 1,100,336 | | | | 1,333,508 | | | | 1,090,672 | |
Credit default swaps at value (premiums paid $106,746, $255,154 and $268,531, respectively) | | | | | | | 110,456 | | | | 267,117 | | | | 275,466 | |
Unrealized appreciation on futures contracts | | | | | | | 7,158 | | | | — | | | | — | |
Unrealized appreciation on interest rate swaps contracts | | | | | | | 81,062 | | | | — | | | | 177,856 | |
Unrealized appreciation on forward foreign currency exchange contracts | | | | | | | 47,323 | | | | 13,629 | | | | 52,741 | |
Prepaid expenses and other assets | | | | | | | 30,934 | | | | 14,876 | | | | 12,984 | |
| | | | | | | | | | | | | | | | |
Total Assets | | | | | | | 21,902,033 | | | | 41,189,423 | | | | 78,481,618 | |
| | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | |
Foreign withholding tax payable | | | | | | | 6,909 | | | | 7,234 | | | | 7,317 | |
Payable for capital shares redeemed | | | | | | | 10,078 | | | | — | | | | 2,813 | |
Payable for investments purchased | | | | | | | 1,605,868 | | | | 1,157,717 | | | | 2,526,144 | |
Unrealized depreciation on forward foreign currency exchange contracts | | | | | | | 70,690 | | | | — | | | | 71,332 | |
Unrealized depreciation on interest rate swaps contracts | | | | | | | 51,682 | | | | — | | | | 99,543 | |
Unrealized depreciation on futures contracts | | | | | | | 5,255 | | | | 7,128 | | | | 10,206 | |
Accrued expenses and other payables: | | | | | | | | | | | | | | | | |
Investment advisory fees | | | | | | | — | | | | — | | | | 17,535 | |
Accounting fees | | | | | | | 10,841 | | | | 11,090 | | | | 11,534 | |
Audit fees | | | | | | | 29,458 | | | | 31,029 | | | | 35,644 | |
Custodian fees | | | | | | | 19,460 | | | | — | | | | 15,386 | |
Shareholder reports | | | | | | | — | | | | — | | | | 5,077 | |
Transfer agent fees | | | | | | | 749 | | | | — | | | | 1,592 | |
Other | | | | | | | 2,899 | | | | 4,151 | | | | 4,201 | |
| | | | | | | | | | | | | | | | |
Total Liabilities | | | | | | | 1,813,889 | | | | 1,218,349 | | | | 2,808,324 | |
| | | | | | | | | | | | | | | | |
Net Assets | | | | | | $ | 20,088,144 | | | $ | 39,971,074 | | | $ | 75,673,294 | |
| | | | | | | | | | | | | | | | |
43
Statements of Assets and Liabilities (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | | | | | | | | | |
| | RBC BlueBay Emerging Market Debt Fund | | | RBC BlueBay High Yield Bond Fund | | | RBC BlueBay Diversified Credit Fund | |
Net Assets Consists of: | | | | | | | | | | | | | | | | |
Capital | | | | | | $ | 25,516,107 | | | $ | 39,802,861 | | | $ | 73,128,171 | |
Undistributed net investment income | | | | | | | 200,855 | | | | 242,072 | | | | 444,745 | |
Accumulated net realized gains/(losses) from investment transactions, foreign currency, written options, futures contracts and swap contracts | | | | | | | (5,406,238 | ) | | | 144,579 | | | | 1,119,217 | |
Net unrealized appreciation/(depreciation) on investments, foreign currency, futures contracts and swap contracts | | | | | | | (222,580 | ) | | | (218,438 | ) | | | 981,161 | |
| | | | | | | | | | | | | | | | |
Net Assets | | | | | | $ | 20,088,144 | | | $ | 39,971,074 | | | $ | 75,673,294 | |
| | | | | | | | | | | | | | | | |
Net Assets | | | | | | | | | | | | | | | | |
Class A | | | | | | $ | 31,629 | | | $ | 589,080 | | | $ | N/A | |
Class I | | | | | | | 20,045,242 | | | | 39,381,994 | | | | 75,662,227 | |
Class R6 | | | | | | | 11,273 | | | | N/A | | | | 11,067 | |
| | | | | | | | | | | | | | | | |
Total | | | | | | $ | 20,088,144 | | | $ | 39,971,074 | | | $ | 75,673,294 | |
| | | | | | | | | | | | | | | | |
Shares Outstanding (Unlimited number of shares authorized, no par value): | | | | | | | | | | | | | | | | |
Class A | | | | | | | 3,174 | | | | 58,008 | | | | N/A | |
Class I | | | | | | | 1,996,208 | | | | 3,856,701 | | | | 7,363,652 | |
Class R6 | | | | | | | 1,119 | | | | N/A | | | | 1,077 | |
| | | | | | | | | | | | | | | | |
Total | | | | | | | 2,000,501 | | | | 3,914,709 | | | | 7,364,729 | |
| | | | | | | | | | | | | | | | |
Net Asset Values and Redemption Prices Per Share: | | | | | | | | | | | | | | | | |
Class A | | | | | | $ | 9.96 | (a) | | $ | 10.16 | | | $ | N/A | |
| | | | | | | | | | | | | | | | |
Class I | | | | | | $ | 10.04 | | | $ | 10.21 | | | $ | 10.28 | |
| | | | | | | | | | | | | | | | |
Class R6 | | | | | | $ | 10.08 | (b) | | $ | N/A | | | $ | 10.27 | (c) |
| | | | | | | | | | | | | | | | |
Maximum Offering Price Per Share: | | | | | | | | | | | | | | | | |
Class A | | | | | | $ | 10.40 | | | $ | 10.61 | | | $ | N/A | |
| | | | | | | | | | | | | | | | |
Maximum Sales Charge - Class A | | | | | | | 4.25 | % | | | 4.25 | % | | | N/A | |
| | | | | | | | | | | | | | | | |
(a) | Net Asset value is calculated using unrounded net assets of $31,629.44 divided by the unrounded shares outstanding of 3,174.085. |
(b) | Net Asset value is calculated using unrounded net assets of $11,273.05 divided by the unrounded shares outstanding of 1,118.669. |
(c) | Net asset value is calculated using unrounded net assets of $11,066.84 divided by the unrounded shares outstanding of 1,077.385. |
See Notes to the Financial Statements.
44
Statements of Operations
For the Six Months Ended March 31, 2018
(Unaudited)
| | | | | | | | | | | | | | | | |
| | RBC BlueBay Emerging Market Debt Fund | | | RBC BlueBay High Yield Bond Fund | | | RBC BlueBay Diversified Credit Fund | |
Investment Income: | | | | | | | | | | | | | | | | |
Interest income | | | | | | $ | 622,937 | | | $ | 917,146 | | | $ | 1,767,894 | |
Dividend income | | | | | | | 3,902 | | | | 4,340 | | | | 17,243 | |
Foreign tax withholding | | | | | | | (2,685 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total Investment Income | | | | | | | 624,154 | | | | 921,486 | | | | 1,785,137 | |
| | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | |
Investment advisory fees | | | | | | | 70,297 | | | | 135,332 | | | | 219,073 | |
Distribution fees–Class A | | | | | | | 59 | | | | 194 | | | | — | |
Accounting fees | | | | | | | 25,699 | | | | 32,593 | | | | 35,399 | |
Audit fees | | | | | | | 23,039 | | | | 23,855 | | | | 26,508 | |
Custodian fees | | | | | | | 37,459 | | | | 31,797 | | | | 42,088 | |
Insurance fees | | | | | | | 2,119 | | | | 2,118 | | | | 2,120 | |
Legal fees | | | | | | | 2,823 | | | | 4,029 | | | | 8,923 | |
Registrations and filing fees | | | | | | | 27,151 | | | | 19,323 | | | | 21,478 | |
Shareholder reports | | | | | | | 4,009 | | | | 5,538 | | | | 9,135 | |
Transfer agent fees–Class A | | | | | | | 1,831 | | | | 1,916 | | | | — | |
Transfer agent fees–Class I | | | | | | | 3,402 | | | | 2,942 | | | | 1,979 | |
Transfer agent fees–Class R6 | | | | | | | 2,080 | | | | — | | | | 2,080 | |
Trustees’ fees and expenses | | | | | | | 662 | | | | 1,269 | | | | 2,492 | |
Interest expense | | | | | | | 2,219 | | | | — | | | | — | |
Tax expense | | | | | | | 4,980 | | | | 5,233 | | | | 5,387 | |
Other fees | | | | | | | 3,107 | | | | 2,830 | | | | 2,668 | |
| | | | | | | | | | | | | | | | |
Total expenses before fee waiver/reimbursement | | | | | | | 210,936 | | | | 268,969 | | | | 379,330 | |
Expenses waived/reimbursed by: | | | | | | | | | | | | | | | | |
Advisor | | | | | | | (127,115 | ) | | | (162,313 | ) | | | (123,128 | ) |
| | | | | | | | | | | | | | | | |
Net expenses | | | | | | | 83,821 | | | | 106,656 | | | | 256,202 | |
| | | | | | | | | | | | | | | | |
Net Investment Income | | | | | | | 540,333 | | | | 814,830 | | | | 1,528,935 | |
| | | | | | | | | | | | | | | | |
Realized/Unrealized Gains/(Losses): | | | | | | | | | | | | | | | | |
Net realized gains/(losses) on: | | | | | | | | | | | | | | | | |
Investment transactions | | | | | | | 37,615 | | | | 275,282 | | | | 1,652,150 | |
Foreign currency transactions | | | | | | | (34,891 | ) | | | 169,697 | | | | 530,584 | |
Foreign currency exchange contracts | | | | | | | (9,048 | ) | | | (57,912 | ) | | | (754,873 | ) |
Foreign tax | | | | | | | (3,550 | ) | | | — | | | | — | |
Written options | | | | | | | (36,720 | ) | | | (66,697 | ) | | | 6,330 | |
Futures contracts | | | | | | | 64,748 | | | | 142,596 | | | | 1,442,457 | |
Swap agreements | | | | | | | (18,159 | ) | | | 100,131 | | | | (77,129 | ) |
| | | | | | | | | | | | | | | | |
Net realized gains/(losses) | | | | | | | (5 | ) | | | 563,097 | | | | 2,799,519 | |
| | | | | | | | | | | | | | | | |
Net change in unrealized appreciation/(depreciation) on: | | | | | | | | | | | | | | | | |
Investments | | | | | | | (470,679 | ) | | | (1,169,793 | ) | | | (1,588,448 | ) |
Foreign currency | | | | | | | 4,525 | | | | 11,740 | | | | 226,447 | |
Foreign currency exchange contracts | | | | | | | (63,064 | ) | | | (63,501 | ) | | | (119,864 | ) |
45
Statements of Operations (cont.)
For the Six Months Ended March 31, 2018
(Unaudited)
| | | | | | | | | | | | | | | | |
| | RBC BlueBay Emerging Market Debt Fund | | | RBC BlueBay High Yield Bond Fund | | | RBC BlueBay Diversified Credit Fund | |
Futures contracts | | | | | | $ | 5,946 | | | $ | (21,961 | ) | | $ | (104,083 | ) |
Swap agreements | | | | | | | (13,608 | ) | | | 11,963 | | | | 85,248 | |
| | | | | | | | | | | | | | | | |
Net unrealized losses | | | | | | | (536,880 | ) | | | (1,231,552 | ) | | | (1,500,700 | ) |
| | | | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | | $ | 3,448 | | | $ | 146,375 | | | $ | 2,827,754 | |
| | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
46
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | |
| | RBC BlueBay Emerging Market Debt Fund | |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | | For the Year Ended September 30, 2017 | |
From Investment Activities | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | |
Net investment income | | | | | | $ | 540,333 | | | | | | | $ | 990,434 | |
Net realized gains/(losses) from investments, foreign currency, written options, futures contracts and swap contracts transactions | | | | | | | (5 | ) | | | | | | | 146,585 | |
Net change in unrealized depreciation on investments, foreign currency, futures contracts and swap contracts | | | | | | | (536,880 | ) | | | | | | | (128,174 | ) |
| | | | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | | | 3,448 | | | | | | | | 1,008,845 | |
| | | | | | | | | | | | | | | | |
Distributions to Class A Shareholders: | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | (1,768 | ) | | | | | | | — | |
Distributions to Class I Shareholders: | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | (655,231 | ) | | | | | | | — | |
Distributions to Class R6 Shareholders: | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | (380 | ) | | | | | | | — | |
| | | | | | | | | | | | | | | | |
Change in net assets resulting from shareholder distributions | | | | | | | (657,379 | ) | | | | | | | — | |
| | | | | | | | | | | | | | | | |
Capital Transactions: | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | | | | | | 2,055,400 | | | | | | | | 3,187,000 | |
Distributions reinvested | | | | | | | 648,316 | | | | | | | | — | |
Cost of shares redeemed | | | | | | | (519,949 | ) | | | | | | | (4,816,640 | ) |
| | | | | | | | | | | | | | | | |
Change in net assets resulting from capital transactions | | | | | | | 2,183,767 | | | | | | | | (1,629,640 | ) |
| | | | | | | | | | | | | | | | |
Net increase/(decrease) in net assets | | | | | | | 1,529,836 | | | | | | | | (620,795 | ) |
Net Assets: | | | | | | | | | | | | | | | | |
Beginning of period | | | | | | | 18,558,308 | | | | | | | | 19,179,103 | |
| | | | | | | | | | | | | | | | |
End of period | | | | | | $ | 20,088,144 | | | | | | | $ | 18,558,308 | |
| | | | | | | | | | | | | | | | |
Undistributed net investment income | | | | | | $ | 200,855 | | | | | | | $ | 317,901 | |
| | | | | | | | | | | | | | | | |
Share Transactions: | | | | | | | | | | | | | | | | |
Issued | | | | | | | 204,176 | | | | | | | | 327,478 | |
Reinvested | | | | | | | 64,461 | | | | | | | | — | |
Redeemed | | | | | | | (50,717 | ) | | | | | | | (500,387 | ) |
| | | | | | | | | | | | | | | | |
Change in shares resulting from capital transactions | | | | | | | 217,920 | | | | | | | | (172,909 | ) |
| | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
47
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | |
| | RBC BlueBay High Yield Bond Fund | |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | | For the Year Ended September 30, 2017 | |
From Investment Activities | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | |
Net investment income | | | | | | $ | 814,830 | | | | | | | $ | 1,684,621 | |
Net realized gains from investments, foreign currency, written options, futures contracts and swap contracts transactions | | | | | | | 563,097 | | | | | | | | 213,492 | |
Net change in unrealized appreciation/(depreciation) on investments, foreign currency, futures contracts and swap contracts | | | | | | | (1,231,552 | ) | | | | | | | 747,912 | |
| | | | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | | | 146,375 | | | | | | | | 2,646,025 | |
| | | | | | | | | | | | | | | | |
Distributions to Class A Shareholders: | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | (1,037 | ) | | | | | | | (4,613 | ) |
Distributions to Class I Shareholders: | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | (1,088,834 | ) | | | | | | | (962,932 | ) |
| | | | | | | | | | | | | | | | |
Change in net assets resulting from shareholder distributions | | | | | | | (1,089,871 | ) | | | | | | | (967,545 | ) |
| | | | | | | | | | | | | | | | |
Capital Transactions: | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | | | | | | 2,942,211 | | | | | | | | 4,699,003 | |
Distributions reinvested | | | | | | | 1,089,854 | | | | | | | | 967,485 | |
Cost of shares redeemed | | | | | | | (499,460 | ) | | | | | | | (2,617,296 | ) |
| | | | | | | | | | | | | | | | |
Change in net assets resulting from capital transactions | | | | | | | 3,532,605 | | | | | | | | 3,049,192 | |
| | | | | | | | | | | | | | | | |
Net increase in net assets | | | | | | | 2,589,109 | | | | | | | | 4,727,672 | |
Net Assets: | | | | | | | | | | | | | | | | |
Beginning of period | | | | | | | 37,381,965 | | | | | | | | 32,654,293 | |
| | | | | | | | | | | | | | | | |
End of period | | | | | | $ | 39,971,074 | | | | | | | $ | 37,381,965 | |
| | | | | | | | | | | | | | | | |
Undistributed net investment income | | | | | | $ | 242,072 | | | | | | | $ | 517,113 | |
| | | | | | | | | | | | | | | | |
Share Transactions: | | | | | | | | | | | | | | | | |
Issued | | | | | | | 285,160 | | | | | | | | 464,683 | |
Reinvested | | | | | | | 105,533 | | | | | | | | 96,122 | |
Redeemed | | | | | | | (48,302 | ) | | | | | | | (259,898 | ) |
| | | | | | | | | | | | | | | | |
Change in shares resulting from capital transactions | | | | | | | 342,391 | | | | | | | | 300,907 | |
| | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
48
Statements of Changes in Net Assets
| | | | | | | | | | | | | | |
| | RBC BlueBay Diversified Credit Fund | |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | | For the Year Ended September 30, 2017 | |
From Investment Activities | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | |
Net investment income | | | | $ | 1,528,935 | | | | | | | $ | 2,498,102 | |
Net realized gains/(losses) from investments, foreign currency, written options, futures contracts and swap contracts transactions | | | | | 2,799,519 | | | | | | | | (853,929 | ) |
Net change in unrealized appreciation/(depreciation) on investments, foreign currency, futures contracts and swap contracts | | | | | (1,500,700 | ) | | | | | | | 1,362,918 | |
| | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | 2,827,754 | | | | | | | | 3,007,091 | |
| | | | | | | | | | | | | | |
Distributions to Class I Shareholders: | | | | | | | | | | | | | | |
From net investment income | | | | | (2,360,212 | ) | | | | | | | (1,593,358 | ) |
Distributions to Class R6 Shareholders: | | | | | | | | | | | | | | |
From net investment income | | | | | (350 | ) | | | | | | | — | |
| | | | | | | | | | | | | | |
Change in net assets resulting from shareholder distributions | | | | | (2,360,562 | ) | | | | | | | (1,593,358 | ) |
| | | | | | | | | | | | | | |
| | | | |
Capital Transactions: | | | | | | | | | | | | | | |
Proceeds from shares issued | | | | | 469,774 | | | | | | | | 1,783,417 | |
Distributions reinvested | | | | | 2,351,212 | | | | | | | | 1,586,698 | |
Cost of shares redeemed | | | | | (321,663 | ) | | | | | | | (546,654 | ) |
| | | | | | | | | | | | | | |
Change in net assets resulting from capital transactions | | | | | 2,499,323 | | | | | | | | 2,823,461 | |
| | | | | | | | | | | | | | |
Net increase in net assets | | | | | 2,966,515 | | | | | | | | 4,237,194 | |
Net Assets: | | | | | | | | | | | | | | |
Beginning of period | | | | | 72,706,779 | | | | | | | | 68,469,585 | |
| | | | | | | | | | | | | | |
End of period | | | | $ | 75,673,294 | | | | | | | $ | 72,706,779 | |
| | | | | | | | | | | | | | |
Undistributed net investment income | | | | $ | 444,745 | | | | | | | $ | 1,276,372 | |
| | | | | | | | | | | | | | |
Share Transactions: | | | | | | | | | | | | | | |
Issued | | | | | 46,022 | | | | | | | | 179,684 | |
Reinvested | | | | | 232,317 | | | | | | | | 165,626 | |
Redeemed | | | | | (31,398 | ) | | | | | | | (54,955 | ) |
| | | | | | | | | | | | | | |
Change in shares resulting from capital transactions | | | | | 246,941 | | | | | | | | 290,355 | |
| | | | | | | | | | | | | | |
See Notes to the Financial Statements.
49
RBC Bluebay Emerging Market Debt Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Activities | | | Distributions | | | | |
| | Net Asset Value, Beginning of Period | | | Net Investment Income(a) | | | Net Realized and Unrealized Gains (Losses) on Investments | | | Redemption Fees | | | Total from Investment Activities | | | Net Investment Income | | | Net Realized Gains | | | Return of Capital | | | Total Distributions | | | Net Asset Value, End of Period | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | $10.36 | | | | 0.28 | | | | (0.30) | | | | — | | | | (0.02) | | | | (0.38) | | | | — | | | | — | | | | (0.38) | | | | $ 9.96 | |
Year Ended 9/30/17 | | | 9.78 | | | | 0.50 | | | | 0.08 | | | | — | | | | 0.58 | | | | — | | | | — | | | | — | | | | — | | | | 10.36 | |
Year Ended 9/30/16 | | | 8.64 | | | | 0.45 | | | | 0.69 | | | | — | | | | 1.14 | | | | — | | | | — | | | | — | | | | — | | | | 9.78 | |
Year Ended 9/30/15 | | | 9.75 | | | | 0.40 | | | | (1.44) | | | | — | | | | (1.04) | | | | (0.07) | | | | — | | | | — | | | | (0.07) | | | | 8.64 | |
Period Ended 9/30/14(b) | | | 9.83 | | | | 0.33 | | | | (0.08) | | | | — | | | | 0.25 | | | | (0.18) | | | | (0.15) | | | | — | | | | (0.33) | | | | 9.75 | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | $10.41 | | | | 0.29 | | | | (0.29) | | | | — | | | | — | | | | (0.37) | | | | — | | | | — | | | | (0.37) | | | | $10.04 | |
Year Ended 9/30/17 | | | 9.81 | | | | 0.54 | | | | 0.06 | | | | — | | | | 0.60 | | | | — | | | | — | | | | — | | | | — | | | | 10.41 | |
Year Ended 9/30/16 | | | 8.64 | | | | 0.50 | | | | 0.67 | | | | — | | | | 1.17 | | | | — | | | | — | | | | — | | | | — | | | | 9.81 | |
Year Ended 9/30/15 | | | 9.75 | | | | 0.36 | | | | (1.39) | | | | — | | | | (1.03) | | | | (0.08) | | | | — | | | | — | | | | (0.08) | | | | 8.64 | |
Year Ended 9/30/14 | | | 9.92 | | | | 0.40 | | | | (0.17) | | | | — | | | | 0.23 | | | | (0.24) | | | | — | | | | (0.16) | | | | (0.40) | | | | 9.75 | |
Year Ended 9/30/13 | | | 10.88 | | | | 0.30 | | | | (0.78) | | | | — | | | | (0.48) | | | | (0.11) | | | | (0.18) | | | | (0.19) | | | | (0.48) | | | | 9.92 | |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | $10.42 | | | | 0.29 | | | | (0.28) | | | | — | | | | 0.01 | | | | (0.35) | | | | — | | | | — | | | | (0.35) | | | | $10.08 | |
Period Ended 9/30/17(c) | | | 9.25 | | | | 0.45 | | | | 0.72 | | | | — | | | | 1.17 | | | | — | | | | — | | | | — | | | | — | | | | 10.42 | |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(b) | For the period from November 27, 2013 (commencement of operations) to September 30, 2014. |
(c) | For the period from December 27, 2016 (commencement of operations) to September 30, 2017. |
50
RBC Bluebay Emerging Market Debt Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Ratios/Supplemental Data |
| | Total Return(a)(b) | | 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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | | 0.03 | %(c) | | | $ | 32 | | | | | 1.14 | %(d) | | | | 5.51 | %(d) | | | | 10.20 | %(d) | | | | 196 | % |
Year Ended 9/30/17 | | | | 5.94 | % | | | | 63 | | | | | 1.15 | % | | | | 5.17 | % | | | | 7.94 | % | | | | 251 | % |
Year Ended 9/30/16 | | | | 13.08 | % | | | | 112 | | | | | 1.15 | % | | | | 4.96 | % | | | | 4.54 | % | | | | 279 | % |
Year Ended 9/30/15 | | | | (10.72 | )% | | | | 241 | | | | | 1.15 | % | | | | 4.32 | % | | | | 3.84 | % | | | | 282 | % |
Period Ended 9/30/14(e) | | | | 2.51 | %(c) | | | | 10 | | | | | 1.25 | %(d) | | | | 3.91 | %(d) | | | | 53.32 | %(d) | | | | 233 | % |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | | 0.03 | %(c) | | | $ | 20,045 | | | | | 0.89 | %(d) | | | | 5.77 | %(d) | | | | 2.21 | %(d) | | | | 196 | % |
Year Ended 9/30/17 | | | | 6.23 | % | | | | 18,484 | | | | | 0.90 | % | | | | 5.54 | % | | | | 2.24 | % | | | | 251 | % |
Year Ended 9/30/16 | | | | 13.43 | % | | | | 19,067 | | | | | 0.90 | % | | | | 5.44 | % | | | | 1.79 | % | | | | 279 | % |
Year Ended 9/30/15 | | | | (10.67 | )% | | | | 26,588 | | | | | 0.90 | % | | | | 3.81 | % | | | | 1.14 | % | | | | 282 | % |
Year Ended 9/30/14 | | | | 2.32 | % | | | | 216,014 | | | | | 1.00 | % | | | | 4.04 | % | | | | 1.05 | % | | | | 233 | % |
Year Ended 9/30/13 | | | | (4.70 | )% | | | | 185,882 | | | | | 1.00 | % | | | | 2.79 | % | | | | 1.10 | % | | | | 203 | % |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | | 0.10 | %(c) | | | $ | 11 | | | | | 0.85 | %(d) | | | | 5.80 | %(d) | | | | 39.27 | %(d) | | | | 196 | % |
Period Ended 9/30/17(f) | | | | 12.65 | %(c) | | | | 11 | | | | | 0.85 | %(d) | | | | 5.93 | %(d) | | | | 53.42 | %(d) | | | | 251 | % |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Excludes sales charge. |
(b) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
(e) | For the period from November 27, 2013 (commencement of operations) to September 30, 2014. |
(f) | For the period from December 27, 2016 (commencement of operations) to September 30, 2017. |
See Notes to the Financial Statements.
51
RBC Bluebay High Yield Bond Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Activities | | | Distributions | | | | |
| | Net Asset Value, Beginning of Period | | | Net Investment Income(a) | | | Net Realized and Unrealized Gains (Losses) on Investments | | | Total from Investment Activities | | | Net Investment Income | | | Net Realized Gains | | | Total Distributions | | | Net Asset Value, End of Period | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | $ | 10.42 | | | | 0.21 | | | | (0.18) | | | | 0.03 | | | | (0.29) | | | | — | | | | (0.29) | | | $ | 10.16 | |
Year Ended 9/30/17 | | | 9.98 | | | | 0.47 | | | | 0.26 | | | | 0.73 | | | | (0.29) | | | | — | | | | (0.29) | | | | 10.42 | |
Year Ended 9/30/16 | | | 9.82 | | | | 0.48 | | | | 0.16 | | | | 0.64 | | | | (0.41) | | | | (0.07) | | | | (0.48) | | | | 9.98 | |
Year Ended 9/30/15 | | | 10.41 | | | | 0.46 | | | | (0.44) | | | | 0.02 | | | | (0.26) | | | | (0.35) | | | | (0.61) | | | | 9.82 | |
Period Ended 9/30/14(b) | | | 10.41 | | | | 0.41 | | | | 0.04 | | | | 0.45 | | | | (0.45) | | | | — | | | | (0.45) | | | | 10.41 | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | $ | 10.46 | | | | 0.22 | | | | (0.17) | | | | 0.05 | | | | (0.30) | | | | — | | | | (0.30) | | | $ | 10.21 | |
Year Ended 9/30/17 | | | 9.98 | | | | 0.49 | | | | 0.28 | | | | 0.77 | | | | (0.29) | | | | — | | | | (0.29) | | | | 10.46 | |
Year Ended 9/30/16 | | | 9.82 | | | | 0.50 | | | | 0.17 | | | | 0.67 | | | | (0.44) | | | | (0.07) | | | | (0.51) | | | | 9.98 | |
Year Ended 9/30/15 | | | 10.42 | | | | 0.48 | | | | (0.45) | | | | 0.03 | | | | (0.28) | | | | (0.35) | | | | (0.63) | | | | 9.82 | |
Year Ended 9/30/14 | | | 10.35 | | | | 0.53 | | | | 0.21 | | | | 0.74 | | | | (0.56) | | | | (0.11) | | | | (0.67) | | | | 10.42 | |
Year Ended 9/30/13 | | | 10.76 | | | | 0.60 | | | | (0.02) | | | | 0.58 | | | | (0.60) | | | | (0.39) | | | | (0.99) | | | | 10.35 | |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(b) | For the period from November 27, 2013 (commencement of operations) to September 30, 2014. |
52
RBC Bluebay High Yield Bond Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Ratios/Supplemental Data | |
| | Total Return(a)(b) | | | 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 | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | 0.36%(c) | | | | $ 589 | | | | 0.82%(d)(e) | | | | 4.16%(d) | | | | 4.10%(d) | | | | 68% | |
Year Ended 9/30/17 | | | 7.37% | | | | 33 | | | | 0.70% | | | | 4.59% | | | | 4.44% | | | | 101% | |
Year Ended 9/30/16 | | | 6.86% | | | | 831 | | | | 0.70% | | | | 4.86% | | | | 2.25% | | | | 84% | |
Year Ended 9/30/15 | | | 0.15% | | | | 505 | | | | 0.98%(f) | | | | 4.53% | | | | 2.38% | | | | 128% | |
Period Ended 9/30/14(g) | | | 4.38%(c) | | | | 29 | | | | 1.20%(d) | | | | 4.62%(d) | | | | 25.84%(d) | | | | 116% | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | 0.44%(c) | | | | $39,382 | | | | 0.55%(d)(e) | | | | 4.21%(d) | | | | 1.38%(d) | | | | 68% | |
Year Ended 9/30/17 | | | 7.89% | | | | 37,349 | | | | 0.45% | | | | 4.83% | | | | 1.44% | | | | 101% | |
Year Ended 9/30/16 | | | 7.14% | | | | 31,824 | | | | 0.45% | | | | 5.13% | | | | 1.50% | | | | 84% | |
Year Ended 9/30/15 | | | 0.28% | | | | 29,662 | | | | 0.75%(f) | | | | 4.76% | | | | 1.33% | | | | 128% | |
Year Ended 9/30/14 | | | 7.36% | | | | 34,631 | | | | 0.95% | | | | 5.05% | | | | 1.30% | | | | 116% | |
Year Ended 9/30/13 | | | 5.54% | | | | 29,519 | | | | 0.95% | | | | 5.64% | | | | 1.52% | | | | 117% | |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Excludes sales charge. |
(b) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
(e) | Beginning November 1, 2017, the net operating expenses were contractually limited to 0.82% and 0.57% of average daily net assets for Class A and Class I respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended March 31, 2018. |
(f) | Beginning August 3, 2015, the net operating expenses were contractually limited to 0.70% and 0.45% of average daily net assets for Class A and Class I respectively. The ratio of net expenses to average net assets represents a blended percentage for the year ended September 30, 2015. |
53
RBC Bluebay High Yield Bond Fund
(Selected data for a share outstanding throughout the periods indicated)
(g) | For the period from November 27, 2013 (commencement of operations) to September 30, 2014. |
See Notes to the Financial Statements.
54
RBC Bluebay Diversified Credit Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Activities | | | Distributions | | | | |
| | Net Asset | | | | | | Net Realized | | | | | | | | | | | | | | | | | | | | | | |
| | Value, | | | Net | | | and Unrealized | | | | | | Total from | | | Net | | | Net | | | | | | | | | Net Asset | |
| | Beginning | | | Investment | | | Gains (Losses) | | | Redemption | | | Investment | | | Investment | | | Realized | | | Return | | | Total | | | Value, End | |
| | of Period | | | Income(a) | | | on Investments | | | Fees | | | Activities | | | Income | | | Gains | | | of Capital | | | Distributions | | | of Period | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | $ | 10.21 | | | | 0.21 | | | | 0.19 | | | | — | | | | 0.40 | | | | (0.33) | | | | — | | | | — | | | | (0.33) | | | $ | 10.28 | |
Year Ended 9/30/17 | | | 10.03 | | | | 0.36 | | | | 0.05 | | | | — | | | | 0.41 | | | | (0.23) | | | | — | | | | — | | | | (0.23) | | | | 10.21 | |
Year Ended 9/30/16 | | | 9.57 | | | | 0.40 | | | | 0.31 | | | | — | | | | 0.71 | | | | (0.14) | | | | (0.11) | | | | — | | | | (0.25) | | | | 10.03 | |
Period Ended 9/30/15(b) | | | 10.00 | | | | 0.24 | | | | (0.54) | | | | — | | | | (0.30) | | | | (0.13) | | | | — | | | | — | | | | (0.13) | | | | 9.57 | |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | $ | 10.21 | | | | 0.21 | | | | 0.18 | | | | — | | | | 0.39 | | | | (0.33) | | | | — | | | | — | | | | (0.33) | | | $ | 10.27 | |
Period Ended 9/30/17(c) | | | 9.59 | | | | 0.26 | | | | 0.36 | | | | — | | | | 0.62 | | | | — | | | | — | | | | — | | | | — | | | | 10.21 | |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(b) | For the period from December 9, 2014 (commencement of operations) to September 30, 2015. |
(c) | For the period from December 27, 2016 (commencement of operations) to September 30, 2017. |
55
RBC Bluebay Diversified Credit Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Ratios/Supplemental Data |
| | Total Return(a)(b) | | 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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | | 3.88 | %(c) | | | $ | 75,662 | | | | | 0.69 | %(d) | | | | 4.12 | %(d) | | | | 1.02 | %(d) | | | | 129% | |
Year Ended 9/30/17 | | | | 4.28 | % | | | | 72,696 | | | | | 1.00 | % | | | | 3.64 | % | | | | 1.32 | % | | | | 215% | |
Year Ended 9/30/16 | | | | 7.56 | % | | | | 68,470 | | | | | 1.00 | % | | | | 4.11 | % | | | | 1.29 | % | | | | 246% | |
Period Ended 9/30/15(e) | | | | (3.08) | %(c) | | | | 63,340 | | | | | 1.00 | %(d) | | | | 2.99 | %(d) | | | | 1.34 | %(d) | | | | 193% | |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | | 3.93 | %(c) | | | $ | 11 | | | | | 0.64 | %(d) | | | | 4.18 | %(d) | | | | 39.28 | %(d) | | | | 129% | |
Period Ended 9/30/17(f) | | | | 6.47 | %(c) | | | | 11 | | | | | 0.95 | %(d) | | | | 3.42 | %(d) | | | | 54.27 | %(d) | | | | 215% | |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Excludes sales charge. |
(b) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
(e) | For the period from December 9, 2014 (commencement of operations) to September 30, 2015. |
(f) | For the period from December 27, 2016 (commencement of operations) to September 30, 2017. |
See Notes to the Financial Statements.
56
|
NOTES TO FINANCIAL STATEMENTS |
March 31, 2018 (Unaudited)
1. Organization:
RBC Funds Trust (the “Trust”) is registered under the Investment Company Act of 1940 (as amended) as an open-end management investment company. The Trust was organized as a Delaware statutory trust on December 16, 2003 and currently consists of 18 portfolios. Overall responsibility for the management of the Trust is vested in its Board of Trustees (the “Board”). This report includes the following three investment portfolios (each a “Fund” and collectively, the “Funds”):
- RBC BlueBay Emerging Market Debt Fund (“Emerging Market Debt Fund”) (formerly known as RBC BlueBay Emerging Market Select Bond Fund)
- RBC BlueBay High Yield Bond Fund (“ High Yield Bond Fund”) (formerly known as RBC BlueBay Global High Yield Bond Fund)
- RBC BlueBay Diversified Credit Fund (“Diversified Credit Fund”)
Class I shares are offered by each Fund; Class A shares are offered by each Fund except Diversified Credit Fund; Class R6 shares are offered by each Fund except High Yield Bond Fund. Class A shares are offered with a 4.25% 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 and Class R6 shares (intended for investors meeting certain investment minimum thresholds) are not subject to either a front-end sales charge or a CDSC.
RBC Global Asset Management (U.S.) Inc. (“RBC GAM (US)” or “Advisor” or “Co-Administrator”) acts as the investment advisor for the Funds and BlueBay Asset Management LLP (“BlueBay“or “Sub-Advisor”) acts as a sub-advisor for each of the Funds. BlueBay Asset Management USA LLC (“BlueBay US”) also acts as a sub-advisor for the High Yield Bond Fund and the Diversified Credit Fund. The officers of the Trust (“Fund Management”) are also employees of RBC GAM (US).
2. Significant Accounting Policies
Each Fund is an investment company that follows accounting and reporting guidance under the Financial Accounting Standards Board. Summarized below are the significant accounting policies of the Funds. These policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). Fund Management follows these policies when preparing financial statements. Fund Management may also be required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The financial statements are as of the close of regular trading on the New York Stock Exchange (“NYSE”).
In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in the ASU shorten the amortization period for certain callable debt securities, held at a premium, to be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount; which continues to be amortized to maturity. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management is currently evaluating the impact, if any, of applying this provision.
Security Valuation:
The Board has adopted pricing and valuation procedures for determining the fair value of each Fund’s investments. Fair value of a security is considered to be the price that a fund might reasonably expect to receive upon its current sale in an orderly transaction between market participants.
Equity securities are generally valued on the basis of prices furnished by third-party pricing services approved by the Board. Equity securities listed on one or more exchanges shall be valued at the last available quoted sale price on the primary trading exchange as of the regularly scheduled closing time of the exchange and are categorized as Level 1 in the fair value hierarchy. (See “Fair Value Measurements” below for additional information). An equity security not listed on an exchange but
57
|
NOTES TO FINANCIAL STATEMENTS |
listed on NASDAQ shall be valued at the NASDAQ official closing price and is also categorized as Level 1. If there was no sale on the primary exchange on the day the net asset value is calculated or a NASDAQ official closing price is not available, the most recent bid quotation generally will be used and such securities will generally be categorized as Level 2. Investments in open-end investment companies (mutual funds) are valued at net asset value and are categorized as Level 1 in the fair value hierarchy.
Fixed income securities, including to-be-announced (“TBA”) commitments and municipal bonds, are generally valued based on evaluated prices received from third-party pricing services or from broker-dealers who make markets in the securities and are generally categorized as Level 2 in the fair value hierarchy (see “Fair Value Measurements” below for additional information). The pricing services utilize both dealer-supplied valuations and electronic data processing techniques that take into account multiple appropriate factors such as institutional-size trading in similar groups of securities, market spreads, interest rates, and fundamental security analytical data including yield, quality, coupon rate, maturity and type of issue.
Bank loans are valued using recently executed transactions, market price quotations, credit/market events, and cross-asset pricing. Inputs are generally observable market inputs obtained from independent sources. Bank Loans are generally categorized as Level 2 of the fair value hierarchy, unless key inputs are unobservable which would then be as Level 3.
Exchange-traded options, futures and options on futures are valued at the last sale price at the close of the market on the principal exchange on which they are traded. In the absence of any transactions on that day, the closing bid price shall be used for purchased options, futures and options on futures, and the closing ask price shall be used for written options. Such instruments are categorized as Level 1 of the fair value hierarchy. Options contracts traded in the over-the-counter (“OTC”) market shall be valued at the evaluated price provided by an independent pricing service or broker-dealer using a mathematical model which incorporates a number of market data factors, such as trades and prices of the underlying instruments. These contracts are categorized as Level 2 of the fair value hierarchy. Forward foreign currency exchange contracts are marked to market daily based upon foreign currency exchange rates provided by an independent pricing service as of the close of the NYSE, generally 4:00 p.m. EST, and are generally classified as Level 2 within the fair value hierarchy.
Swaps, including credit-default swaps, interest rate swaps and total return swaps, are generally valued by an independent pricing service using a discounted cash flow methodology. This technique is used to value both the fixed and variable components of the swap contracts and takes into account market data and inputs sourced from various institutions and market-makers and includes daily intra-day and closing spreads, credit index quotes, yield curves, and recovery rate assumptions. The Fund’s net benefit or obligation under the derivative contract, as measured by the fair market value of the contract, is included in the Fund’s net assets. These swap contracts are categorized as Level 2 in the fair valuation hierarchy.
Foreign securities valued in non-U.S. dollars are valued in the foreign currency and then converted into the U.S. dollar equivalent using the foreign exchange rate in effect at the close of the NYSE on the day the security’s value is determined. The value of securities traded in markets outside the United States may be affected on a day that the NYSE is closed and an investor is not able to purchase, exchange or redeem shares of the Funds.
The Board has delegated to the Funds’ Pricing Committee (“Pricing Committee”) the responsibility for implementing the pricing and valuation procedures, including responsibility for determining the fair value of the Funds’ securities or other assets and liabilities. The Pricing Committee includes representatives of the Funds’ Advisor, Co-Administrator and Sub-Advisor, including personnel from accounting and operations, investment management, trading, risk management, compliance and legal. The Pricing Committee meets at least quarterly to review and approve Fund valuation matters, including a review of the Funds’ pricing activity and operations, fair value measurements, pricing vendors, policies and procedures, and related controls. At least a quorum of the Pricing Committee shall meet more frequently, as needed, to consider and approve time-sensitive fair valuation matters. The Pricing Committee reports to the Valuation, Portfolio Management and Performance Committee (“Valuation Committee”) of the Board. Members of the Pricing Committee meet with the Valuation
58
|
NOTES TO FINANCIAL STATEMENTS |
Committee and the Board at each of their regularly scheduled meetings to discuss valuation matters and actions taken during the period.
The Board has adopted procedures to determine the fair value of a security when a price is not available from a pricing service or broker-dealer or Fund Management determines that a price provided by a pricing service or broker-dealer does not approximate fair value. Fair valuation may also be used when a significant valuation event affecting the value of a security or market sector is determined to have occurred between the time when a security’s market closes and the time the Fund’s net asset value is calculated. The fair value of the security will be determined in good faith by the Pricing Committee in accordance with procedures and methodologies adopted by the Board. General factors used in determining the fair value of securities include, but are not limited to, fundamental analytical data relating to the security, the issuer and the market, such as duration, prepayment and default rates; general level of interest rates and changes in interest rates; information from broker-dealers; trading in similar securities; any restrictions on disposition of the security; and an evaluation of the forces that influence the market in which the investments are traded. These securities are either categorized as Level 2 or 3 in the fair value hierarchy, depending on the relevant inputs used.
When the Funds utilize fair valuation methods that use significant unobservable inputs to determine a security’s value, such securities will be categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. While the Funds’ policy is intended to result in a calculation of a Fund’s net asset value that fairly reflects security values as of the time of pricing, the Funds cannot guarantee that values determined by the Board or persons acting at their direction would accurately reflect the price that the Funds could obtain for a security if they were to dispose of it as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Funds may differ from the value that would be realized if the securities were sold.
The Funds’ Pricing Committee employs various methods for calibrating the valuation approach related to securities categorized within Level 2 and Level 3 of the fair value hierarchy. These methods may include regular due diligence of the Funds’ pricing vendors, a regular review of key inputs and assumptions, transaction back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing and stale prices and large movements in market value, and reviews of any market related activities. Additionally, the pricing of all fair value holdings is subsequently reported to the Valuation Committee and Board.
Fair Value Measurements:
The Funds disclose the fair value of their investments in a hierarchy that categorizes investments based on the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows:
• Level 1 - Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access at the measurement date.
• Level 2 - Significant inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active. Observable inputs may include quoted prices for similar securities, interest rates, spreads, prepayment spreads, etc.
• Level 3 - Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those securities.
Inputs used in determining fair value of an investment may include, but are not limited to, price information, volatility statistics, credit and market data, and other factors, all of which may be either observable or unobservable. Inputs can vary among investments and will be impacted by the investment type and volume of activity for the particular security or similar securities in the market. Investments in the Level 3 category are generally supported by transactions and quoted prices from dealers participating in the market for those investments. Investments may be included in the Level 3 category due to a lack of market activity or transparency. Internal valuation models may also be used as
59
|
NOTES TO FINANCIAL STATEMENTS |
a pricing source for Level 3 investments. Internal valuation models may rely on one or more unobservable inputs, such as estimated cash flows, financial statement analysis and discount rates.
The summary of inputs used to determine the fair value of the Funds’ investments as of March 31, 2018 is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | Level 1 Quoted Prices | | Level 2 Significant Observable Inputs | | Level 3 Significant Unobservable Inputs | | Total |
Emerging Market Debt Fund | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in Securities(a) | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate Bonds | | | $ | — | | | | $ | 4,853,231 | | | | | | | | | | $— | | | | $ | 4,853,231 | |
Foreign Governnment Bonds | | | | — | | | | | 13,898,018 | | | | | | | | | | — | | | | | 13,898,018 | |
Investment Company | | | | 1,219,624 | | | | | — | | | | | | | | | | — | | | | | 1,219,624 | |
Other Financial Instruments* | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency exchange contracts - forward contracts | | | | — | | | | | 47,323 | | | | | | | | | | — | | | | | 47,323 | |
Financial futures contracts | | | | 7,158 | | | | | — | | | | | | | | | | — | | | | | 7,158 | |
Credit default swaps | | | | — | | | | | 110,456 | | | | | | | | | | — | | | | | 110,456 | |
Interest rate swaps | | | | — | | | | | 81,062 | | | | | | | | | | — | | | | | 81,062 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Assets | | | $ | 1,226,782 | | | | $ | 18,990,090 | | | | | | | | | | $— | | | | $ | 20,216,872 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments* | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial futures contracts | | | | $(5,255) | | | | | $ — | | | | | | | | | | $— | | | | | $ (5,255) | |
Interest Rate Swaps | | | | — | | | | | (51,682 | ) | | | | | | | | | — | | | | | (51,682 | ) |
Foreign currency exchange contracts - forward contracts | | | | — | | | | | (70,690 | ) | | | | | | | | | — | | | | | (70,690 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities | | | | $(5,255) | | | | | $(122,372) | | | | | | | | | | $— | | | | | $(127,627) | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
60
|
NOTES TO FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | | | | | | | |
| | Level 1 Quoted Prices | | Level 2 Significant Observable Inputs | | Level 3 Significant Unobservable Inputs | | Total |
High Yield Bond Fund | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | |
Investments in Securities(a) | | | | | | | | | | | | | | | | | | | | |
Bank Loans | | | | | | | | | | | | | | | | | | | | |
United States | | | $ | — | | | | $ | 345,816 | | | | $ | 73,161 | | | | $ | 418,977 | |
Corporate Bonds | | | | | | | | | | | | | | | | | | | | |
Australia | | | | — | | | | | — | | | | | 255,000 | | | | | 255,000 | |
Belgium | | | | — | | | | | 190,163 | | | | | — | | | | | 190,163 | |
Brazil | | | | — | | | | | 512,272 | | | | | — | | | | | 512,272 | |
Canada | | | | — | | | | | 695,866 | | | | | — | | | | | 695,866 | |
France | | | | — | | | | | 390,048 | | | | | — | | | | | 390,048 | |
Germany | | | | — | | | | | 762,787 | | | | | — | | | | | 762,787 | |
Ghana | | | | — | | | | | 225,000 | | | | | — | | | | | 225,000 | |
Italy | | | | — | | | | | 267,614 | | | | | — | | | | | 267,614 | |
Luxembourg | | | | — | | | | | 1,132,206 | | | | | — | | | | | 1,132,206 | |
Netherlands | | | | — | | | | | 718,548 | | | | | — | | | | | 718,548 | |
Spain | | | | — | | | | | 1,056,754 | | | | | — | | | | | 1,056,754 | |
Sweden | | | | — | | | | | 388,360 | | | | | — | | | | | 388,360 | |
United Arab Emirates | | | | — | | | | | 198,712 | | | | | — | | | | | 198,712 | |
United Kingdom | | | | — | | | | | 1,895,189 | | | | | — | | | | | 1,895,189 | |
United States | | | | — | | | | | 27,268,437 | | | | | — | | | | | 27,268,437 | |
Zambia | | | | — | | | | | 379,958 | | | | | — | | | | | 379,958 | |
Rights/Warrants | | | | | | | | | | | | | | | | | | | | |
Australia | | | | — | | | | | — | | | | | — | | | | | — | |
Mexico | | | | — | | | | | — | | | | | 521 | | | | | 521 | |
Common Stocks | | | | | | | | | | | | | | | | | | | | |
Italy | | | | 26,816 | | | | | — | | | | | — | | | | | 26,816 | |
United States | | | | 226,025 | | | | | — | | | | | 20,833 | | | | | 246,858 | |
Investment Company | | | | 1,203,352 | | | | | — | | | | | — | | | | | 1,203,352 | |
Other Financial Instruments* | | | | | | | | | | | | | | | | | | | | |
Foreign currency exchange contracts - forward contracts | | | | — | | | | | 13,629 | | | | | — | | | | | 13,629 | |
Credit default swaps | | | | — | | | | | 267,117 | | | | | — | | | | | 267,117 | |
| | | | | | | | | | | | | | | | | | | | |
Total Assets | | | $ | 1,456,193 | | | | $ | 36,708,476 | | | | $ | 349,515 | | | | $ | 38,514,184 | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments* | | | | | | | | | | | | | | | | | | | | |
Financial futures contracts | | | | $(7,128) | | | | | $— | | | | | $— | | | | | $(7,128) | |
| | | | | | | | | | | | | | | | | | | | |
61
|
NOTES TO FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | | | | | | | |
| | Level 1 Quoted Prices | | Level 2 Significant Observable Inputs | | Level 3 Significant Unobservable Inputs | | Total |
Diversified Credit Fund | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | |
Investments in Securities(a) | | | | | | | | | | | | | | | | | | | | |
Convertible Bonds | | | $ | — | | | | $ | 11,837,017 | | | | $ | — | | | | $ | 11,837,017 | |
Corporate Bonds | | | | | | | | | | | | | | | | | | | | |
Argentina | | | | — | | | | | 223,775 | | | | | — | | | | | 223,775 | |
Australia | | | | — | | | | | — | | | | | 161,500 | | | | | 161,500 | |
Austria | | | | — | | | | | 859,648 | | | | | — | | | | | 859,648 | |
Azerbaijan | | | | — | | | | | 374,068 | | | | | — | | | | | 374,068 | |
Bahrain | | | | — | | | | | 297,213 | | | | | — | | | | | 297,213 | |
Brazil | | | | — | | | | | 581,172 | | | | | — | | | | | 581,172 | |
Colombia | | | | — | | | | | 464,276 | | | | | — | | | | | 464,276 | |
France | | | | — | | | | | 1,297,723 | | | | | — | | | | | 1,297,723 | |
India | | | | — | | | | | 155,010 | | | | | — | | | | | 155,010 | |
Italy | | | | — | | | | | 2,530,257 | | | | | — | | | | | 2,530,257 | |
Mexico | | | | — | | | | | 736,562 | | | | | — | | | | | 736,562 | |
Mongolia | | | | — | | | | | 214,563 | | | | | — | | | | | 214,563 | |
Netherlands | | | | — | | | | | 1,366,887 | | | | | — | | | | | 1,366,887 | |
Pakistan | | | | — | | | | | 405,385 | | | | | — | | | | | 405,385 | |
Peru | | | | — | | | | | 422,783 | | | | | — | | | | | 422,783 | |
South Africa | | | | — | | | | | 78,156 | | | | | — | | | | | 78,156 | |
Spain | | | | — | | | | | 4,083,008 | | | | | — | | | | | 4,083,008 | |
Switzerland | | | | — | | | | | 282,746 | | | | | — | | | | | 282,746 | |
Ukraine | | | | — | | | | | 283,044 | | | | | — | | | | | 283,044 | |
United Kingdom | | | | — | | | | | 4,333,199 | | | | | — | | | | | 4,333,199 | |
Foreign Governnment Bonds | | | | — | | | | | 36,878,932 | | | | | — | | | | | 36,878,932 | |
Investment Company | | | | 5,324,527 | | | | | — | | | | | — | | | | | 5,324,527 | |
Other Financial Instruments* | | | | | | | | | | | | | | | | | | | | |
Foreign currency exchange contracts - forward contracts | | | | — | | | | | 31,931 | | | | | — | | | | | 31,931 | |
Credit default swaps | | | | — | | | | | 275,466 | | | | | — | | | | | 275,466 | |
Interest rate swaps | | | | — | | | | | 177,856 | | | | | — | | | | | 177,856 | |
| | | | | | | | | | | | | | | | | | | | |
Total Assets | | | $ | 5,324,527 | | | | $ | 68,190,677 | | | | $ | 161,500 | | | | $ | 73,676,704 | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments* | | | | | | | | | | | | | | | | | | | | |
Financial futures contracts | | | | $(10,206) | | | | | $ — | | | | | $— | | | | | $ (10,206) | |
Foreign currency exchange contracts - forward contracts | | | | — | | | | | (50,522 | ) | | | | — | | | | | (50,522 | ) |
Interest Rate Swaps | | | | — | | | | | (99,543 | ) | | | | — | | | | | (99,543 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Liabilities | | | | $(10,206) | | | | | $(150,065) | | | | | $— | | | | | $(160,271) | |
| | | | | | | | | | | | | | | | | | | | |
62
|
NOTES TO FINANCIAL STATEMENTS |
(a) The breakdown of the Fund’s investments by country is disclosed in the Schedules of Portfolio Investments.
*Other financial instruments are instruments shown on the Schedule of Portfolio Investments, such as futures contracts, options, swaps and foreign currency exchange contracts which are valued at fair value.
During the period ended March 31, 2018, the Funds recognized no transfers to/from Level 1 or Level 2. The Fund’s policy is to recognize transfers to/from Level 1, Level 2 and Level 3 at the end of the year utilizing fair value at the beginning of the year.
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
| | | | | | | | | | | | | | | | |
| | High Yield Bond Fund | |
| | Bank Loans– (Norway, United States) | | | Common Stocks– (United States) | | | Corporate Bonds– (Australia) | | | Rights/Warrants– (Mexico) | |
Balance as of 9/30/17(value) | | | $83,202 | | | | $20,833 | | | | $ — | | | | $520 | |
Sales (Paydowns) | | | (8,699 | ) | | | — | | | | — | | | | — | |
Realized gain (loss) | | | 202 | | | | — | | | | — | | | | — | |
Transfer into Level 3 | | | — | | | | — | | | | 219,000 | | | | — | |
Change in unrealized appreciation (depreciation) | | | (1,544 | ) | | | — | | | | 36,000 | | | | 1 | |
| | | | | | | | | | | | | | | | |
Balance as of 3/31/18(value) | | | $73,161 | | | | $20,833 | | | | $255,000 | | | | $521 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | Diversified Credit Fund | |
| | | | | | | | | | | Corporate Bonds– (Australia) | |
Balance as of 9/30/17(value) | | | | | | | | | | | | | | | $ — | |
Transfer into Level 3 | | | | | | | | | | | | | | | 138,700 | |
Change in unrealized appreciation (depreciation) | | | | | | | | 22,800 | |
| | | | | | | | | | | | | | | | |
Balance as of 3/31/18(value) | | | | | | | | | | | | | | | $161,500 | |
| | | | | | | | | | | | | | | | |
The Funds’ assets assigned to the Level 3 category are valued utilizing the valuation technique deemed the most appropriate in the circumstances. The significant unobservable inputs used in the fair value measurement of the Funds’ investments may include (i) an estimation of the net present value of anticipated cash flows; (ii) an estimation of a normalized earnings level for the company and (iii) the likelihood of achieving normalized earnings. Significant changes in any of those inputs in isolation may result in a significantly lower or higher fair value measurement.
Foreign Currency Transactions:
The values of foreign securities, foreign currencies and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using current exchange rates each business day.
63
|
NOTES TO FINANCIAL STATEMENTS |
Fluctuations in the value of foreign currency holdings and other assets and liabilities resulting from movements in currency exchange rates are recorded as unrealized foreign currency gains or losses. The effects of changes in foreign currency exchange rates on investments in securities are not segregated from the effects of changes in market prices of those securities on the Statements of Operations. Such fluctuations are included with the net change in unrealized appreciation/depreciation on investment transactions. However, for tax purposes, the effects of fluctuations in foreign currency exchange rates when determining the realized gain or loss upon the sale or maturity of foreign currency denominated debt obligations are segregated pursuant to U.S. Federal income tax regulations; such amounts are categorized as foreign exchange gain or loss for both financial reporting and income tax reporting purposes.
Financial Instruments:
Bank Loans:
A Fund may invest in fixed and floating rate loans from one or more financial institutions (“lender(s)”) to a borrower by way of: (i) assignment/transfer of; or (ii) participation in the whole or part of the loan amount outstanding. In both instances, assignments or participations of such loans must be capable of being freely traded and transferred between investors in the loans. Participations typically will result in a Fund having a contractual relationship only with a lender as grantor of the participation but not with the borrower. A Fund acquires a participation interest only if the lender(s) positioned between the Fund and the borrower is determined by the Sub-Advisor to be creditworthy. When purchasing loan participations, a Fund assumes the economic risk associated with the corporate borrower and the credit risk associated with an interposed bank or other financial intermediary. Loan assignments typically involve a transfer of debt from a lender to a third party. When purchasing loan assignments, a Fund assumes the credit risk associated with the corporate borrower only.
Such loans may be secured or unsecured. Loans that are fully secured offer a Fund more protection than an unsecured loan in the event of non-payment of scheduled interest or principal. However, there is no assurance that the liquidation of collateral from a secured loan would satisfy the corporate borrower’s obligation. In addition, investments in loans through a direct assignment include the risk that if a loan is terminated, a Fund could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral.
Loan participations typically represent direct participation in a loan to a corporate borrower, and generally are offered by banks or other financial institutions or lending syndicates.
A loan is often administered by an agent bank acting as agent for all holders. Unless, under the terms of the loan or other indebtedness, a Fund has direct recourse against the corporate borrower, the Fund may have to rely on the agent bank or other financial intermediary to apply appropriate credit remedies against a corporate borrower.
When a Fund purchases a floating rate loan interest, it may receive a facility fee and when it sells a floating rate loan interest, it may pay a facility fee. On an ongoing basis, the Funds may receive a commitment fee based on the undrawn portion of the underlying line of credit amount of a floating rate loan interest. Facility and commitment fees are typically amortized to income over the term of the loan or term of the commitment, respectively. Consent and amendment fees are recorded to income as earned. Prepayment penalty fees, which may be received by the Funds upon the prepayment of a floating rate loan interest by a borrower, are recorded as realized gains. The Funds may invest in multiple series or tranches of a loan. A different series or tranche may have varying terms and carry different associated risks.
In connection with floating rate loan interests, the Funds may also enter into unfunded floating rate loan interests (“commitments”). In connection with these commitments, the Funds earn a commitment fee, typically set as a percentage of the commitment amount. Such fee income, which is included in interest income in the Statement of Operations, is recognized ratably over the commitment period. Unfunded floating rate loan interests are marked-to-market daily, and any unrealized appreciation or depreciation is included in the Statements of Assets and Liabilities and Statements of Operations.
As of March 31, 2018, the Funds did not have any unfunded floating rate loan interests.
64
|
NOTES TO FINANCIAL STATEMENTS |
Payment-in-Kind Securities:
The Funds may invest in payment-in-kind securities (“PIKs”). PIKs give the issuer the option at each interest payment date of making interest payments in either cash or additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and require a pro-rata adjustment from the unrealized appreciation or depreciation on investments to interest receivable on the Statement of Assets and Liabilities.
For the period ended March 31, 2018, the total in-kind payments received by the Global High Yield Bond Fund and Diversified Credit Fund with respect to PIKs constituted less than 5% of the Fund’s total income and, therefore, such payments were not disclosed as a separate line item on the Statement of Operations.
Derivatives:
The Funds may use derivative instruments, including futures, forwards, options, indexed securities, swaps and inverse securities as tools in the management of portfolio assets. A Fund may use such derivatives through either the creation of long or short positions to hedge various investments, for investment purposes, for risk management and/or to increase income or gain to the Fund. Derivatives allow a Fund to increase or decrease its risk exposure more quickly and efficiently than other types of instruments. Derivatives may be riskier than other types of investments and could result in losses that significantly exceed a Fund’s original investment. Derivatives are subject to the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index. The use of derivatives may not be successful, resulting in losses to a Fund, and the cost of such strategies may reduce the Fund’s returns.
Hedging also involves the risk that changes in the value of the derivative will not match those of the holdings being hedged as expected by the Funds, in which case any losses on the holdings being hedged may not be reduced and may be increased. There can be no assurance that a Fund’s hedging strategy will reduce risk or that hedging transactions will be available or cost effective. The Funds are subject to interest rate risk and foreign currency exchange risk in the normal course of pursuing their investment objectives by investing in various derivative financial instruments, as described below.
In addition to the risks associated with derivatives in general, the Funds will also be subject to risks related to swap agreements. Because swap agreements are not exchange-traded, but are private contracts into which a Fund and a swap counterparty enter as principals, a Fund may experience a loss or delay in recovering assets if the counterparty defaults on its obligations. Each Fund will segregate or earmark liquid assets in an amount sufficient to cover its obligations under swap agreements.
Financial Futures Contracts:
The Funds may enter into futures contracts in an effort to manage the duration of the portfolio and hedge against certain market risk. A futures contract on a securities index is an agreement obligating one party to pay, and entitling the other party to receive, during the term of the contract, cash payments based on the level of a specified securities index. Futures transactions involve brokerage costs and require a Fund to segregate assets to cover contracts that would require it to purchase securities or currencies. A Fund may lose the expected benefit of futures transactions if interest rates, exchange rates or securities prices change in an unanticipated manner. Such unanticipated changes may also result in lower overall performance than if a Fund had not entered into any futures transactions.
The Funds entered into U.S. Treasury Bond futures, Euro Dollar futures and Euro-Bund futures during the period ended March 31, 2018.
Upon entering into a futures contract, a Fund is required to pledge to the broker an amount of cash, U.S. government securities, or other assets equal to a certain percentage of the contract amount. Subsequent payments are made or received by the Funds each day, depending on the daily fluctuations in the fair value of the underlying instrument. A Fund would record an unrealized gain or loss each day equal to these daily payments.
65
|
NOTES TO FINANCIAL STATEMENTS |
Open futures contracts are shown on the Schedules of Portfolio Investments. Underlying collateral pledged for open futures contracts is the cash at brokers for financial futures contracts shown on the Statements of Assets and Liabilities at March 31, 2018.
Options:
The Funds may write (or sell) put and call options on the securities that the Funds are authorized to buy or already hold in their portfolio. The Funds may also purchase put and call options.
A call option gives the purchaser of the option the right (but not the obligation) to buy, and obligates the seller to sell (when the option is exercised), the underlying instrument at the exercise price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise price at any time or at a specified time during the option period. When a Fund purchases (writes) an option, an amount equal to the premium paid (received) by a Fund is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written). When an instrument is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the instrument acquired or deducted from (or added to) the proceeds of the instrument sold. When an option expires (or a Fund enters into a closing transaction), a Fund realizes a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premium received or paid). When a Fund writes a call option, such option is “covered,” meaning that a Fund holds the underlying instrument subject to being called by the option counterparty, or cash in an amount sufficient to cover the obligation. When a Fund writes a put option, such option is covered by cash in an amount sufficient to cover the obligation.
In purchasing and writing options, a Fund bears the market risk of an unfavorable change in the price of the underlying instrument or the risk that a Fund may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in a Fund purchasing or selling a security at a price different from the current market value.
A Fund may execute transactions in both listed (exchange-traded) and OTC options. Listed options involve minimal counterparty risk since listed options are guaranteed against default by the exchange on which they trade. Transactions in certain OTC options may expose a Fund to the risk of default by the counterparty to the transaction. In the event of default by the counterparty to the OTC option transaction, a Fund’s maximum amount of loss is the premium paid (as purchaser) or the unrealized gain of the contract (as writer).
Forward Foreign Currency Exchange Contracts:
The Funds enter into forward foreign currency contracts (“Forward”) to hedge their exposure to changes in foreign currency exchange rates on foreign portfolio holdings (foreign currency exchange risk). In addition, certain Funds may use a Forward to provide exposure to the foreign currency market. A Forward is an agreement between two parties to purchase or sell a foreign currency at a future date at a negotiated forward rate. A Forward is marked-to-market daily and the change in market value is recorded by the Funds as unrealized appreciation or depreciation until the contract settlement date.
The market value of the Forward is determined using the forward rate for the remainder of the outstanding period of the contract, through the delivery date. When a Forward is closed or settled, the Funds record a realized gain or loss equal to the fluctuation in rates during the period a Forward was open.
In the event of default by the counterparty to the transaction, the Fund’s maximum amount of loss, as either the buyer or seller, is the unrealized gain of the contract.
Details of Forward contracts at period end are included in the Schedules of Portfolio Investments under the caption “Foreign currency exchange contracts.”
Swap Agreements:
The Funds may enter into swap agreements, which are agreements involving two parties to exchange the return generated by a security, currency, commodity, interest rate, index, or other measures for the return generated by another instrument, for example, the agreement to pay interest in exchange for a
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NOTES TO FINANCIAL STATEMENTS |
market-linked return based on a notional amount. The Funds entered into total return, interest rate, credit default and other swap agreements as of March 31, 2018.
Interest rate swap agreements generally involve the agreement by a Fund to pay a counterparty a fixed or floating rate on a fixed notional amount and to receive a fixed or floating rate on a fixed notional amount, but may also involve the agreement to pay or receive payments derived from changes in interest rates. Periodic payments are generally made during the life of the swap agreement according to the terms and conditions of the agreement and at termination or maturity.
The Funds enter into cross-currency swaps to gain or reduce exposure to foreign currencies or as an economic hedge against either specific transactions or portfolio instruments (foreign currency exchange rate and/or interest rate risk). Cross-currency swaps are interest rate swaps in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party’s stream of interest payments, either fixed or floating, based on the notional amounts of two different currencies. The notional amounts are typically determined based on the spot exchange rates at the inception of the trade. Cross-currency swaps may also involve an exchange of notional amounts at the start, during and/or at expiration of the contract, either at the current spot rate or another specified rate.
The Funds enter into credit default swaps to manage their exposure to the market or certain sectors of the market, to reduce their risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which they are not otherwise exposed (credit risk). The Funds enter into credit default swap agreements to provide a measure of protection against the default of an issuer (as buyer of protection) and/or gain credit exposure to an issuer to which it is not otherwise exposed (as seller of protection). The Funds may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps on single-name issuers are agreements in which the buyer pays fixed periodic payments to the seller in consideration for a guarantee from the seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation accelerators, repudiation, moratorium or restructuring). Credit default swaps on traded indexes are agreements in which the buyer pays fixed periodic payments to the seller in consideration for a guarantee from the seller to make a specific payment should a writedown, principal or interest shortfall or default of all or individual underlying securities included in the index occurs. As a buyer, if an underlying credit event occurs, the Funds will either receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index or receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, the Funds will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.
Total return swap agreements involve the commitments to pay or receive an amount generally determined by reference to a security, index or other measure in exchange for a specific market linked return, based on notional amounts. To the extent that the total return of the security, index or other measure underlying the transaction exceeds or falls short of the offsetting interest rate-based obligation, the Funds receive or make a payment to the counterparty. Interim payments and payments received or made by a Fund at the expiration or other termination of the swap agreements are recorded in the Statement of Operations as realized gains or losses, respectively. Swap agreements are marked-to-market daily based on dealer-supplied valuations, and changes in value, including the periodic amounts of interest to be paid or received on swaps, are recorded as unrealized appreciation/ (depreciation). Risks may exceed amounts recognized on the Statements of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts’ terms and the possible lack of liquidity with respect to the swap
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NOTES TO FINANCIAL STATEMENTS |
agreements. Details of swap agreements open at period end are included in the Schedules of Portfolio Investments under the captions “Interest rate swaps”, “Credit default swaps” and “Total return swaps”.
Fair Values of derivative instruments as of March 31, 2018 are as follows:
| | | | | | | | | | | | |
Fair Values of Derivative Financial Instrument as of March 31, 2018(1) | |
Statement of Assets and Liabilities Location | |
Asset Derivatives | |
| | Emerging Market Debt Fund | | | High Yield Bond Fund | | | Diversified Credit Fund | |
Credit Risk: | | | | | | | | | | | | |
Credit default swaps, at value | | | $110,456 | | | | $267,117 | | | | $275,466 | |
Interest Rate Risk: | | | | | | | | | | | | |
Unrealized appreciation on interest rate swaps contracts | | | 81,062 | | | | — | | | | 177,856 | |
Unrealized appreciation on futures contracts | | | 7,158 | | | | — | | | | — | |
Foreign currency exchange risk: | | | | | | | | | | | | |
Unrealized appreciation on forward foreign currency exchange contracts | | | 47,323 | | | | 13,629 | | | | 52,741 | |
| | | | | | | | | | | | |
Total | | | $245,999 | | | | $280,746 | | | | $506,063 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Liability Derivatives | |
| | Emerging Market Debt Fund | | | High Yield Bond Fund | | | Diversified Credit Fund | |
Interest Rate Risk: | | | | | | | | | | | | |
Unrealized depreciation on interest rate swaps | | | $ 51,682 | | | | $ — | | | | $ 99,543 | |
Unrealized depreciation on futures contracts | | | 5,255 | | | | 7,128 | | | | 10,206 | |
Foreign currency exchange risk: | | | | | | | | | | | | |
Unrealized depreciation on forward foreign currency exchange contracts | | | 70,690 | | | | — | | | | 71,332 | |
| | | | | | | | | | | | |
Total | | | $127,627 | | | | $7,128 | | | | $181,081 | |
| | | | | | | | | | | | |
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|
NOTES TO FINANCIAL STATEMENTS |
The effect of derivative instruments on the Statement of Operations during the period ended March 31, 2018 is as follows:
| | | | | | | | | | | | |
Derivative Instruments Categorized by Risk Exposure | | Emerging Market Debt Fund | | | High Yield Bond Fund | | | Diversified Credit Fund | |
Net realized Gain/(Loss) From: | | | | | | | | | | | | |
Credit Risk: | | | | | | | | | | | | |
Credit default swaps | | | $(14,906) | | | | $ 97,731 | | | | $ (91,540) | |
Equity Risk: | | | | | | | | | | | | |
Call options purchased(2) | | | 64,774 | | | | 64,243 | | | | (14,852) | |
Put options purchased(2) | | | — | | | | — | | | | 716 | |
Written Options | | | (36,720 | ) | | | (66,697) | | | | 6,330 | |
Interest Rate Risk: | | | | | | | | | | | | |
Interest rate swaps | | | (3,253 | ) | | | 2,400 | | | | 14,411 | |
Financial futures contracts | | | 64,748 | | | | 142,596 | | | | 1,442,457 | |
Foreign currency exchange risk: | | | | | | | | | | | | |
Forward foreign currency exchange contracts | | | (9,048) | | | | (57,912) | | | | (754,873) | |
| | | | | | | | | | | | |
Total | | | $ 65,595 | | | | $182,361 | | | | $ 602,649 | |
| | | | | | | | | | | | |
| | | |
Derivative Instruments Categorized by Risk Exposure | | Emerging Market Debt Fund | | | High Yield Bond Fund | | | Diversified Credit Fund | |
Net Change in Unrealized Appreciation/(Depreciation) From: | | | | | | | | | | | | |
Credit Risk: | | | | | | | | | | | | |
Credit default swaps | | | $ 6,145 | | | | $ 11,963 | | | | $ 6,935 | |
Equity Risk: | | | | | | | | | | | | |
Call options purchased(3) | | | — | | | | — | | | | (1,600) | |
Interest Rate Risk: | | | | | | | | | | | | |
Interest rate swaps | | | (19,753 | ) | | | — | | | | 78,313 | |
Financial futures contracts | | | 5,946 | | | | (21,961) | | | | (104,083) | |
Foreign currency exchange risk: | | | | | | | | | | | | |
Forward foreign currency exchange contracts | | | (63,064) | | | | (63,501) | | | | (119,864) | |
| | | | | | | | | | | | |
Total | | | $(70,726) | | | | $(73,499) | | | | $(140,299) | |
| | | | | | | | | | | | |
(1) For open derivative instruments as of March 31, 2018, see the preceding tables on the Schedule of Portfolio Investments for credit contracts, foreign currency exchange contracts, interest rate contracts and written options.
(2) Included in net realized gains/(losses) on investment transactions on Statement of Operations.
(3) Included in net change in unrealized appreciation/(depreciation) on investments on Statement of Operations.
For the period ended March 31, 2018, the average volume of derivative activities based on ending quarterly outstanding amounts are as follows:
| | | | | | | | | | | | |
| | Emerging Market Debt Fund | | | High Yield Bond Fund | | | Diversified Credit Fund | |
Futures long position (contracts) | | | 3 | | | | — | | | | — | |
Futures short position (contracts) | | | 17 | | | | 35 | | | | 267 | |
Forward foreign currency exchange contracts purchased (U.S. dollar amounts) | | | $3,764,970 | | | | $5,644,360 | | | | $24,430,442 | |
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|
NOTES TO FINANCIAL STATEMENTS |
| | | | | | | | | | | | |
| | Emerging Market Debt Fund | | | High Yield Bond Fund | | | Diversified Credit Fund | |
Forward foreign currency exchange contracts sold (U.S. dollar amounts) | | | $3,383,532 | | | | $ — | | | | $ 6,290,215 | |
Purchased options (Cost $) | | | — | | | | 5,808 | | | | 32,748 | |
Written Options (Premium received $) | | | — | | | | 6,263 | | | | 3,165 | |
Interest rate swaps (Notional Amount in U.S. Dollars) | | | 5,468,160 | | | | — | | | | 26,006,046 | |
Credit default swaps (Notional Amount in U.S. Dollars) | | | 749,442 | | | | 2,000 | | | | 9,391,162 | |
Counterparty Credit Risk:
Derivatives may also expose a Fund to counterparty risk (the risk that the derivative counterparty will not fulfill its contractual obligations). To the extent amounts due to the Funds from their counterparties are not fully collateralized contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. A Fund’s maximum risk of loss from counterparty credit risk on over-the-counter (“OTC”) derivatives is generally the aggregate unrealized gain in excess of any collateral pledged by the counterparty to the Funds.
For foreign currency exchange contracts, risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts, or if the foreign currency rates change unfavorably.
The Funds’ risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Funds. For OTC purchased options, the Funds bear the risk of loss in the amount of the premiums paid and change in market value of the options should the counterparty not perform under the contracts. Written options by the Funds do not give rise to counterparty credit risk, as written options obligate the Funds 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.
With exchange-traded purchased options and futures and centrally cleared swaps, the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency) of the clearing broker or clearinghouse. Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
In order to better define its contractual rights and to secure rights that will help the Funds mitigate its counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, a Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. In addition, certain
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|
NOTES TO FINANCIAL STATEMENTS |
ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event a Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the counterparty.
Collateral Requirements:
For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty.
Cash collateral that has been pledged to cover obligations of a Fund and cash collateral received from the counterparty, if any, is reported separately on the Statements of Assets and Liabilities as cash due to broker for options contracts, cash at broker for financial futures contracts and segregated cash and foreign currency for options contracts and swap contracts and cash received as payable to broker, respectively. Non-cash collateral pledged by the Fund, if any, is noted in the Schedule of Portfolio Investments. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold (e.g. $500,000) before a transfer is required, which is determined at the close of business of a Fund and any additional required collateral is delivered to/pledged by a Fund on the next business day. Typically, a Fund and its counterparties are not permitted to sell, re-pledge or use the collateral they receive. To the extent amounts due to a Fund from its counterparties are not fully collateralized, contractually or otherwise, a Fund bears the risk of loss from counterparty non-performance. The Funds attempt to mitigate counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.
The following tables present the Funds’ gross and net amount of assets and liabilities available for offset under netting arrangements as well as any related collateral received or pledged by the Funds as of March 31, 2018:
BlueBay Emerging Market Debt
| | | | | | | | | | | | | | | | |
| | Citibank N.A. | | | Citigroup Global Markets, Inc. | | | JPMorgan Chase Bank, N.A. | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | | $ 47,323 | | | | $ — | | | | $ — | | | | $ 47,323 | |
Financial Futures Contracts | | | — | | | | 7,158 | | | | — | | | | 7,158 | |
Swaps | | | — | | | | 189,031 | | | | 2,487 | | | | 191,518 | |
| | | | | | | | | | | | | | | | |
Total Assets | | | 47,323 | | | | 196,189 | | | | 2,487 | | | | 245,999 | |
Liabilities: | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | | 70,690 | | | | — | | | | — | | | | 70,690 | |
Financial Futures Contracts | | | — | | | | 5,255 | | | | — | | | | 5,255 | |
Swaps | | | — | | | | 51,682 | | | | — | | | | 51,682 | |
| | | | | | | | | | | | | | | | |
Total Liabilities | | | 70,690 | | | | 56,937 | | | | — | | | | 127,627 | |
| | | | | | | | | | | | | | | | |
Total Financial and Derivative Net Assets1 | | | (23,367 | ) | | | 139,252 | | | | 2,487 | | | | 118,372 | |
Total Collateral Received (Pledged)2 | | | — | | | | 23,901 | | | | — | | | | 23,901 | |
| | | | | | | | | | | | | | | | |
Net Amount3 | | | $(23,367) | | | | $115,351 | | | | $2,487 | | | | $ 94,471 | |
| | | | | | | | | | | | | | | | |
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|
NOTES TO FINANCIAL STATEMENTS |
BlueBay High Yield Bond
| | | | | | | | | | | | |
| | Citibank N.A. | | | Citigroup Global Markets, Inc. | | | Total | |
Assets: | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | | $13,629 | | | | $ — | | | | $ 13,629 | |
Swaps | | | — | | | | 267,117 | | | | 267,117 | |
| | | | | | | | | | | | |
Total Assets | | | 13,629 | | | | 267,117 | | | | 280,746 | |
| | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | |
Financial Futures Contracts | | | — | | | | 7,128 | | | | 7,128 | |
| | | | | | | | | | | | |
Total Liabilities | | | — | | | | 7,128 | | | | 7,128 | |
| | | | | | | | | | | | |
Total Financial and Derivative Net Assets1 | | | 13,629 | | | | 259,989 | | | | 273,618 | |
Total Collateral Received (Pledged)2 | | | — | | | | 51,031 | | | | 51,031 | |
| | | | | | | | | | | | |
Net Amount3 | | | $13,629 | | | | $208,958 | | | | $222,587 | |
| | | | | | | | | | | | |
BlueBay Diversified Credit
| | | | | | | | | | | | | | | | | | | | | | | | |
| | BNP Paribas SA | | | Citibank N.A. | | | Citigroup Global Markets, Inc. | | | Credit Suisse Securities (USA) LLC | | | HSBC Securities | | | Total | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | | $ — | | | | $ 41,455 | | | | $ 11,286 | | | | $ — | | | | $ — | | | | $ 52,741 | |
Swaps | | | — | | | | — | | | | 448,445 | | | | — | | | | 4,877 | | | | 453,322 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Assets | | | — | | | | 41,455 | | | | 459,731 | | | | — | | | | 4,877 | | | | 506,063 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Currency Exchange Contracts | | | — | | | | 54,476 | | | | 16,856 | | | | — | | | | — | | | | 71,332 | |
Financial Futures Contracts | | | — | | | | — | | | | — | | | | 10,206 | | | | — | | | | 10,206 | |
Swaps | | | 6,081 | | | | — | | | | 93,462 | | | | — | | | | — | | | | 99,543 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities | | | 6,081 | | | | 54,476 | | | | 110,318 | | | | 10,206 | | | | — | | | | 181,081 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Financial and Derivative Net Assets1 | | | (6,081 | ) | | | (13,021 | ) | | | 349,413 | | | | (10,206 | ) | | | 4,877 | | | | 324,982 | |
Total Collateral Received (Pledged)2 | | | — | | | | — | | | | 349,413 | | | | — | | | | — | | | | 349,413 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Amount3 | | | $(6,081) | | | | $(13,021) | | | | $ — | | | | $(10,206) | | | | $4,877 | | | | $ (24,431) | |
| | | | | | | | | | | | | | | | | | | | | | | | |
1 The amount of derivatives for offset is limited to the amount of assets and/or liabilities that are subject to a MNA.
2 Excess of collateral received (pledged) from/to the individual counterparty may not be shown for financial reporting purposes.
3 Net amount represents the net amount receivable (payable) from/to the individual counterparty in the event of default.
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|
NOTES TO FINANCIAL STATEMENTS |
Credit Enhancement:
Certain obligations held by the Funds have credit enhancement or liquidity features that may, under certain circumstances, provide for repayment of principal and interest on the obligation upon demand date, interest rate reset date or final maturity. These enhancements may include: letters of credit; liquidity guarantees; security purchase agreements; tender option purchase agreements and third party insurance.
Investment Transactions and Income:
Investment transactions are recorded on trade date. Dividend income net of non-reclaimable withholding taxes 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 advisory fees. Expenses incurred by the Trust, such as trustee or legal fees, are allocated among each of the Funds in the Trust either proportionately based upon each Fund’s relative net assets or using another reasonable basis such as equally across all Funds in the Trust, depending on the nature of the expense. Individual share classes within a Fund are charged expenses specific to that class, such as distribution fees and transfer agent fees. Within a Fund, expenses other than class specific expenses are allocated daily to each class based upon the proportion of relative net assets. Investment income and realized and unrealized gains or losses are allocated to each class of shares based on relative net assets.
Distributions to Shareholders:
Each 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 and paid monthly. Capital gain distributions are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions are calculated based on federal income tax regulations, which may differ from US GAAP. These “book/tax” differences may be either temporary or permanent in nature. To the extent these differences are determined, as of the end of the tax year, to be permanent, they are reclassified within a Fund’s capital accounts based on their federal tax basis treatment.
3. Agreements and Other Transactions with Affiliates:
The Trust has entered into an investment advisory agreement with RBC GAM (US) under which RBC GAM (US) manages each Funds’ assets and furnishes related office facilities, equipment, research and personnel. The agreement requires each Fund to pay RBC GAM (US) a monthly fee based upon average daily net assets. Under the terms of the agreement, RBC GAM (US) is entitled to receive fees based on a percentage of the average daily net assets of each of the Funds as follows:
| | | | |
| | Annual Rate | |
Emerging Market Debt Fund | | | 0.75 | % |
High Yield Bond Fund | | | 0.70 | % |
Diversified Credit Fund | | | 0.85 | % |
RBC GAM (US) has contractually agreed to waive fees and/or make payments in order to keep total operating expenses (excluding certain fees such as interest, taxes and acquired fund fees and expenses) of the Funds to the following levels pursuant to an expense limitation agreement.
| | | | | | | | | | |
| | Class A Annual Rate | | Class I Annual Rate | | | Class R6 Annual Rate | |
Emerging Market Debt Fund | | 1.12% | | | 0.87% | | | | 0.82% | |
High Yield Bond Fund | | 0.82%* | | | 0.57%* | | | | N/A | |
Diversified Credit Fund | | N/A | | | 0.69% | | | | 0.64% | |
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|
NOTES TO FINANCIAL STATEMENTS |
* Prior to November 1, 2017, the annual rate for High Yield Bond Fund under the expense limitation agreement was 0.70% for Class A and 0.45% for Class I.
This expense limitation agreement is in place until January 31, 2019 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 3 years 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.
The amounts subject to possible recoupment under the expense limitation agreement were:
| | | | | | | | | | | | | | | | | | | | |
| | FYE 9/30/15 | | | FYE 9/30/16 | | | FYE 9/30/17 | | | FYE 9/30/18 | | | Total | |
Emerging Market Debt Fund | | | $179,283 | | | | $189,953 | | | | $246,646 | | | | $127,115 | | | | $742,997 | |
High Yield Bond Fund | | | 118,523 | | | | 336,394 | | | | 349,860 | | | | 162,313 | | | | 967,090 | |
Diversified Credit Fund | | | — | | | | 187,847 | | | | 222,516 | | | | 123,128 | | | | 533,491 | |
Each of the Funds are sub-advised by BlueBay, and the Global High Yield Bond Fund and Diversified Credit Fund are also sub-advised by BlueBay US, which are wholly-owned subsidiaries of Royal Bank of Canada, which is also the parent company of the Advisor. The Sub-Advisors are paid by the Advisor out of the advisory fee paid by the Funds to the Advisor.
RBC GAM (US) serves as co-administrator to the Funds. BNY Mellon serves as co-administrator and fund accounting agent. Services provided under the administrative services agreement 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 agreement, RBC GAM (US) does not receive a fee for its role as co-administrator. BNY Mellon receives a fee for its services payable by the Funds based in part on the Funds’ average net assets. BNY Mellon’s fee is included with “Accounting fees” in the Statements of Operations.
Certain Officers and Trustees of the Trust are affiliated with the Advisor. Such Officers and Trustees receive no compensation from the Funds for serving in their respective roles.
The Trust currently pays each of the independent Trustees (Trustees of the Trust who are not directors, officers or employees of the Advisor, either Co-Administrator or Distributor) an annual retainer of $54,000. The Board Chairperson and Audit Committee Chairperson each receive an additional retainer of $2,500 annually, and all other trustees serving as Chair of a Board committee each receive an additional retainer of $1,000 annually. In addition, Independent Trustees receive a quarterly meeting fee of $6,500 for each in-person Board meeting attended, a meeting fee of $1,500 for each telephonic or Special Board meeting attended, a $1,500 fee for each Board committee meeting attended, and are reimbursed for all out-of-pocket expenses relating to attendance at such meetings. These amounts are included in the Statement of Operations in “Trustees’ fees”.
In conjunction with the launch of each of the Funds, the Advisor invested seed capital in each Fund to provide each Fund with its initial investment assets. The table below shows, as of March 31, 2018, each Fund’s net assets, the shares (if any) of each Fund held by the Advisor, and the percent of total net assets represented by the Advisor’s investment.
| | | | | | | | | | | | |
| | Net Assets | | | Shares held by Advisor | | | % of Fund Net Assets | |
Emerging Market Debt Fund | | $ | 20,088,144 | | | | 1,119 | | | | 0.1% | |
High Yield Bond Fund | | $ | 39,971,074 | | | | 2,923,837 | | | | 74.7% | |
Diversified Credit Fund | | $ | 75,673,294 | | | | 4,941,788 | | | | 67.1% | |
4. Fund Distribution:
Each of the Funds that offers Class A shares has adopted a Master Distribution 12b-1 Plan (the “Plan”) in which Quasar Distributors LLC (the “Distributor”) acts as the Funds’ distributor. The Plan permits each Fund to make payments for, or to reimburse the Distributor for, distribution-related costs and expenses of marketing shares of Class A covered under the Plan, and/or for providing shareholder
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NOTES TO FINANCIAL STATEMENTS |
services. The Plan does not apply to Class I and Class R6. The following chart shows the current Plan fee rate for Class A.
| | |
| | Class A |
12b-1 Plan Fee | | 0.25%* |
* Under the 12b-1 plan, the maximum fee rate for Class A shares is 0.50%. Currently the Board has approved an annual limit of 0.25%.
Plan fees are based on average daily net assets of Class A. Up to 0.25% of each Plan fee may be designated as a service fee, as defined by the applicable rules of the Financial Industry Regulatory Authority. The Distributor, subject to applicable legal requirements, may waive the Plan fee voluntarily, in whole or in part. For the period ended March 31, 2018, there were no fees waived by the Distributor.
For the period ended March 31, 2018, the Distributor did not receive any commissions for front-end sales charges of Class A shares, of the Funds.
The Distributor did not receive any CDSC fees from Class A shares of the Funds during the period ended March 31, 2018.
5. Securities Transactions:
The cost of securities purchased and proceeds from securities sold (excluding securities maturing less than one year from acquisition) for the period ended March 31, 2018 were as follows:
| | | | | | | | | | |
| | Purchases | | | | | Sales | |
Emerging Market Debt Fund | | | $36,131,961 | | | | | | $33,660,765 | |
High Yield Bond Fund | | | 27,171,618 | | | | | | 24,497,608 | |
Diversified Credit Fund | | | 85,783,482 | | | | | | 85,870,408 | |
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NOTES TO FINANCIAL STATEMENTS |
6. Capital Share Transactions:
The Trust is authorized to issue an unlimited number of shares of beneficial interest (“shares outstanding”) without par value. Transactions in capital stock of the Funds are summarized on the following pages:
| | | | | | | | | | | | | | | | | | | | |
| | Emerging Market Debt Fund | | High Yield Bond Fund |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | For the Year Ended September 30, 2017 | | For the Six Months Ended March 31, 2018 (Unaudited) | | For the Year Ended September 30, 2017 |
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | | $ | — | | | | $ | 19,959 | | | | $ | 559,810 | | | | $ | 1,100 | |
Distributions reinvested | | | | 1,768 | | | | | — | | | | | 1,020 | | | | | 4,553 | |
Cost of shares redeemed | | | | (31,051 | ) | | | | (69,425 | ) | | | | (2,334 | ) | | | | (805,205 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in Class A | | | $ | (29,283 | ) | | | $ | (49,466 | ) | | | $ | 558,496 | | | | $ | (799,552 | ) |
| | | | | | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | | $ | 2,055,400 | | | | $ | 3,157,041 | | | | $ | 2,382,401 | | | | $ | 4,697,903 | |
Distributions reinvested | | | | 646,169 | | | | | — | | | | | 1,088,834 | | | | | 962,932 | |
Cost of shares redeemed | | | | (488,898 | ) | | | | (4,747,215 | ) | | | | (497,126 | ) | | | | (1,812,091 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in Class I | | | $ | 2,212,671 | | �� | | $ | (1,590,174 | ) | | | $ | 2,974,109 | | | | $ | 3,848,744 | |
| | | | | | | | | | | | | | | | | | | | |
Class R6 | | | | | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | | $ | — | | | | $ | 10,000 | | | | $ | — | | | | $ | — | |
Distributions reinvested | | | | 379 | | | | | — | | | | | — | | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Change in Class R6 | | | $ | 379 | | | | $ | 10,000 | | | | $ | — | | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from capital transactions | | | $ | 2,183,767 | | | | $ | (1,629,640 | ) | | | $ | 3,532,605 | | | | $ | 3,049,192 | |
| | | | | | | | | | | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | |
Issued | | | | — | | | | | 1,906 | | | | | 54,939 | | | | | 107 | |
Reinvested | | | | 177 | | | | | — | | | | | 99 | | | | | 457 | |
Redeemed | | | | (3,075 | ) | | | | (7,277 | ) | | | | (223 | ) | | | | (80,617 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in Class A | | | | (2,898 | ) | | | | (5,371 | ) | | | | 54,815 | | | | | (80,053 | ) |
| | | | | | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | | | | | |
Issued | | | | 204,176 | | | | | 324,491 | | | | | 230,221 | | | | | 464,576 | |
Reinvested | | | | 64,246 | | | | | — | | | | | 105,434 | | | | | 95,665 | |
Redeemed | | | | (47,642 | ) | | | | (493,110 | ) | | | | (48,079 | ) | | | | (179,281 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in Class I | | | | 220,780 | | | | | (168,619 | ) | | | | 287,576 | | | | | 380,960 | |
| | | | | | | | | | | | | | | | | | | | |
Class R6 | | | | | | | | | | | | | | | | | | | | |
Issued | | | | — | | | | | 1,081 | | | | | — | | | | | — | |
Reinvested | | | | 38 | | | | | — | | | | | — | | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Change in Class R6 | | | �� | 38 | | | | | 1,081 | | | | | — | | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Change in shares resulting from capital transactions | | | | 217,920 | | | | | (172,909 | ) | | | | 342,391 | | | | | 300,907 | |
| | | | | | | | | | | | | | | | | | | | |
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NOTES TO FINANCIAL STATEMENTS |
| | | | | | | | | | |
| | Diversified Credit Fund |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | For the Year Ended September 30, 2017 |
CAPITAL TRANSACTIONS: | | | | | | | | | | |
Class I | | | | | | | | | | |
Proceeds from shares issued | | | | $ 469,774 | | | | | $ 1,773,417 | |
Distributions reinvested | | | | 2,350,862 | | | | | 1,586,698 | |
Cost of shares redeemed | | | | (321,663 | ) | | | | (546,654 | ) |
| | | | | | | | | | |
Change in Class I | | | | $2,498,973 | | | | | $2,813,461 | |
| | | | | | | | | | |
Class R6 | | | | | | | | | | |
Proceeds from shares issued | | | | $ — | | | | | $ 10,000 | |
Distributions reinvested | | | | 350 | | | | | — | |
| | | | | | | | | | |
Change in Class R6 | | | | $ 350 | | | | | $ 10,000 | |
| | | | | | | | | | |
Change in net assets resulting from capital transactions | | | | $2,499,323 | | | | | $2,823,461 | |
| | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | |
Class I | | | | | | | | | | |
Issued | | | | 46,022 | | | | | 178,641 | |
Reinvested | | | | 232,283 | | | | | 165,626 | |
Redeemed | | | | (31,398 | ) | | | | (54,955 | ) |
| | | | | | | | | | |
Change in Class I | | | | 246,907 | | | | | 289,312 | |
| | | | | | | | | | |
Class R6 | | | | | | | | | | |
Issued | | | | — | | | | | 1,043 | |
Reinvested | | | | 34 | | | | | — | |
| | | | | | | | | | |
Change in Class R6 | | | | 34 | | | | | 1,043 | |
| | | | | | | | | | |
Change in shares resulting from capital transactions | | | | 246,941 | | | | | 290,355 | |
| | | | | | | | | | |
7. Federal Income Taxes:
It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined under Subchapter M of the Internal Revenue Code, and to distribute substantially all of its net investment income and net realized capital gains. Therefore, no federal tax liability is recorded in the financial statements of each Fund.
Fund Management has analyzed the Funds’ tax positions taken or expected to be taken on federal income tax returns for all open tax years (the tax years ended September 30 of the years 2014, 2015, 2016 and 2017 for all Funds, except Diversified Credit Fund which is the tax years ended September 30 of the years 2015, 2016 and 2017), and has concluded that no provision for federal income tax is required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
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NOTES TO FINANCIAL STATEMENTS |
As of March 31, 2018, the tax cost of securities and the breakdown of unrealized appreciation (depreciation) for each Fund was as follows:
| | | | | | | | | | | | | | | | |
| | Tax Cost Of Securities | | | Unrealized Appreciation | | | Unrealized Depreciation | | | Net Unrealized Appreciation/ (Depreciation) | |
Emerging Market Debt Fund | | $ | 20,230,165 | | | $ | 133,949 | | | $ | (393,241 | ) | | | $(259,292) | |
High Yield Bond Fund | | | 38,493,776 | | | | 495,125 | | | | (755,463 | ) | | | (260,338) | |
Diversified Credit Fund | | | 72,495,066 | | | | 1,761,423 | | | | (1,065,038 | ) | | | 696,385 | |
The difference between book basis and tax basis unrealized appreciation/depreciation is attributable primarily to the tax deferral of losses on wash sales, currency straddle losses and MTM on derivatives.
The tax character of distributions during the year ended September 30, 2017 were as follows:
| | | | | | | | | | | | |
| | Distributions Paid From | |
| | Ordinary Income | | | Total Taxable Distributions | | | Total Distributions Paid | |
Emerging Market Debt Fund | | $ | — | | | $ | — | | | $ | — | |
High Yield Bond Fund | | | 967,545 | | | | 967,545 | | | | 967,545 | |
Diversified Credit Fund | | | 1,593,358 | | | | 1,593,358 | | | | 1,593,358 | |
The tax basis of components of accumulated earnings/(losses) and tax character of distributions are determined at fiscal year end, and will be included in the Annual Report dated September 30, 2018.
As of September 30, 2017, the Emerging Market Debt Fund, High Yield Bond Fund and Diversified Credit Fund had a short-term capital loss carryforward of $5,338,206, $0 and $950,860, respectively and a long-term capital loss carryforward of $72,144, $382,825 and $426,068, respectively, available to offset future realized capital gains in accordance with the Regulated Investment Company Modernization Act of 2010. These capital loss carryforwards are not subject to expiration and must first be utilized to offset future realized gains of the same character.
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 Funds had no capital losses which will be treated as arising on the first business day of the fiscal year ending September 30, 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 Advisor. This redemption fee is not charged in cases where, for example, the redemption results from an automatic reinvestment or asset re-allocation not specifically directed by the shareholder. The Trust also reserves the right to reject any Fund purchase order made by persons deemed to be market timers. The Funds’ prospectus contains a full description of the Trust’s policies on market timing and/or excessive trading. The redemption fee is recorded as a credit to capital and is included in the capital transactions on the Statements of Changes in Net Assets.
During the six months ended March 31, 2018, there were no redemption fees collected by the Funds.
9. Commitments:
High Yield Bond Fund may invest in floating rate loan interests. In connection with these investments, High Yield Bond Fund may also enter into bridge loan commitments (“commitments”). Commitments may obligate High Yield Bond Fund to furnish temporary financing to a borrower until permanent
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NOTES TO FINANCIAL STATEMENTS |
financing can be arranged. As of March 31, 2018, High Yield Bond Fund had no outstanding commitments. In connection with these commitments, High Yield Bond Fund earns a commitment fee, typically set as a percentage of the commitment amount. Such fee income, which is included in interest income in the Statements of Operations, is recognized ratably over the commitment period.
10. Significant Risks
Shareholder concentration risk:
As of March 31, 2018, the Funds had omnibus accounts which owned more than 10% of a Fund’s outstanding shares as shown below:
| | | | | | | | |
| | # of Non-Affiliated Omnibus Accounts | | | % of Fund | |
Emerging Market Debt Fund | | | 1 | | | | 25.1% | |
High Yield Bond Fund | | | 1 | | | | 20.3% | |
Diversified Credit Fund | | | 1 | | | | 30.0% | |
In addition, two unaffiliated shareholders in aggregate owned 70.4% of the Emerging Market Debt Fund and one unaffiliated shareholder owned 30.0% of the Diversified Credit Fund as of March 31, 2018. Significant transactions by these shareholders may impact the Funds’ performance.
11. Subsequent Events:
Fund Management has evaluated the impact of all subsequent events on the Funds and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.
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SHARE CLASS INFORMATION (UNAUDITED) |
The Funds offer Class A, Class I and Class R6 shares.
Class A
Class A shares are available in all Funds except Diversified Credit Fund. This share class is 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 4.25% and a 1.00% CDSC for redemption within 12 months of a $1 million or greater purchase. Class A shares currently include a 0.25% (25 bps) annual 12b-1 service and distribution fee.
Class I
Class I shares are available in all 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.
Class R6
Class R6 shares are available in Emerging Market Debt Fund and Diversified Credit Fund. 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.
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SUPPLEMENTAL INFORMATION (UNAUDITED) |
Shareholder Expense Examples
As a shareholder of the the RBC Funds, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the RBC Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2017 through March 31, 2018.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
| | | | | | | | | | | | | | | | | | |
| | | | Beginning Account Value 10/1/17 | | | Ending Account Value 3/31/18 | | | Expenses Paid During Period* 10/1/17–3/31/18 | | | Annualized Expense Ratio During Period 10/1/17–3/31/18 | |
Emerging Market Debt Fund | | | | | | | | | | | | | | | | | | |
| | Class A | | | $1,000.00 | | | | $1,000.30 | | | | $5.69 | | | | 1.14 | % |
| | Class I | | | 1,000.00 | | | | 1,000.30 | | | | 4.44 | | | | 0.89 | % |
| | Class R6 | | | 1,000.00 | | | | 1,001.00 | | | | 4.24 | | | | 0.85 | % |
High Yield Bond Fund | | | | | | | | | | | | | | | | | | |
| | Class A | | | 1,000.00 | | | | 1,003.60 | | | | 4.10 | | | | 0.82 | % |
| | Class I | | | 1,000.00 | | | | 1,004.40 | | | | 2.75 | | | | 0.55 | % |
Diversified Credit Fund | | | | | | | | | | | | | | | | | | |
| | Class I | | | 1,000.00 | | | | 1,038.80 | | | | 3.51 | | | | 0.69 | % |
| | Class R6 | | | 1,000.00 | | | | 1,039.30 | | | | 3.25 | | | | 0.64 | % |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 182/365 (to reflect one half year period).
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SUPPLEMENTAL INFORMATION (UNAUDITED) |
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on each RBC Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | | | | | | | | | | | | | |
| | | | Beginning Account Value 10/1/17 | | | Ending Account Value 3/31/18 | | | Expenses Paid During Period* 10/1/17-3/31/18 | | | Annualized Expense Ratio During Period 10/1/17-3/31/18 | |
Emerging Market Debt Fund | | | | | | | | | | | | | | | | | | |
| | Class A | | | $1,000.00 | | | | $1,019.25 | | | | $5.74 | | | | 1.14 | % |
| | Class I | | | 1,000.00 | | | | 1,020.49 | | | | 4.48 | | | | 0.89 | % |
| | Class R6 | | | 1,000.00 | | | | 1,020.69 | | | | 4.28 | | | | 0.85 | % |
High Yield Bond Fund | | | | | | | | | | | | | | | | | | |
| | Class A | | | 1,000.00 | | | | 1,020.84 | | | | 4.13 | | | | 0.82 | % |
| | Class I | | | 1,000.00 | | | | 1,022.19 | | | | 2.77 | | | | 0.55 | % |
Diversified Credit Fund | | | | | | | | | | | | | | | | | | |
| | Class I | | | 1,000.00 | | | | 1,021.49 | | | | 3.48 | | | | 0.69 | % |
| | Class R6 | | | 1,000.00 | | | | 1,021.74 | | | | 3.23 | | | | 0.64 | % |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 182/365 (to reflect one half year period).
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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 March 31, 2018.
NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
RBC Global Asset Management (U.S.) Inc. serves as investment advisor for the RBC Funds.
RBC Funds are distributed by Quasar Distributors LLC.
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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-BB SAR 03-18
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| | | | | | RBC Funds | | | |
About your Semi Annual | | | | | | This semi-annual report (Unaudited) includes detailed information about your Fund including financial statements, performance, and a complete list of its holdings. | |
Report | | | | | | The RBC Funds compare their performance against various indices. Each of these indices is a widely recognized measure of return for the underlying category of securities. However, the indices are unmanaged, do not include fees, and cannot be invested in directly. | |
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| | | | | | We hope the financial information presented will help you evaluate your investment in the RBC Funds. We also encourage you to read your Fund’s prospectus for further detail as to your Fund’s investment policies and risk profile. RBC Funds prospectuses and performance information subsequent to the date of this report are available on our website at www.rbcgam.us. | |
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| | | | | | A description of the policies and procedures that your Fund uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1-800-422-2766; (ii) on the Fund’s website at www.rbcgam.us; and (iii) on the Securities and Exchange Commission’s (the “Commission”) website at http://www.sec.gov. | |
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| | | | | | 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. | |
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| | | | | | A schedule of each Fund’s portfolio holdings is filed with the Commission for the first and third quarters of each fiscal year on Form N-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 1-800-SEC-0330. | |
Table of | | | | | | Portfolio Managers | | | 1 | |
Contents | | | | | | Performance Summary | | | 3 | |
| | | | | | Fund Statistics | | | | |
| | | | | | - RBC SMID Cap Growth Fund | | | 7 | |
| | | | | | - RBC Enterprise Fund | | | 8 | |
| | | | | | - RBC Small Cap Core Fund | | | 9 | |
| | | | | | - RBC Microcap Value Fund | | | 10 | |
| | | | | | - RBC Small Cap Value Fund | | | 11 | |
| | | | | | Schedule of Portfolio Investments | | | 12 | |
| | | | | | Financial Statements | | | | |
| | | | | | - Statements of Assets and Liabilities | | | 35 | |
| | | | | | - Statements of Operations | | | 39 | |
| | | | | | - Statements of Changes in Net Assets | | | 41 | |
| | | | | | Financial Highlights | | | 46 | |
| | | | | | Notes to Financial Statements | | | 58 | |
| | | | | | Share Class Information | | | 71 | |
| | | | | | Supplemental Information | | | 72 | |
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PORTFOLIO MANAGERS | | | | | | | | | | |
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RBC Global Asset Management (U.S.) Inc. (“RBC GAM (US)”) serves as the investment advisor to the RBC Funds. RBC GAM (US) employs a team approach to the management of the Funds, with no individual team member being solely responsible for the investment decisions. | | | | | | | | | | |
Lance F. James Managing Director, Senior Portfolio Manager Lance James heads the team responsible for the Microcap Core/Enterprise, Small Cap Core, Small Cap Value and Mid Cap Value strategies at RBC GAM (US) and is responsible for portfolio management of the RBC Small Cap Core Fund, RBC Enterprise Fund, RBC Microcap Value Fund, and RBC Small 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. | | | | | | | | | | ![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758g001.jpg)
Lance F. James |
George Prince Vice President, Portfolio Manager, Senior Equity Analyst George Prince serves as the co-portfolio manager for the RBC Enterprise Fund. George also serves as a research analyst for the Small Cap Core, Small Cap Value and Mid Cap Value strategies. 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. | | | | | | | | | | ![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758g002.jpg)
George Prince |
Kenneth A. Tyszko, CPA, CFA Managing Director, Senior Portfolio Manager Ken Tyszko is responsible for portfolio management of the RBC SMID Cap Growth Fund, and is responsible for small, SMID and mid cap growth strategies research and portfolio management at RBC GAM (US). Ken has been in the investment industry since 1984 and has been managing small cap growth and SMID cap growth portfolios since 1988. He joined RBC GAM (US) in 2001. Ken previously served as a portfolio manager for Oberweis Asset Management, ABN AMRO Asset Management (USA) Inc., ABN AMRO Incorporated, and Sears Investment Management Company. His background also includes experience at Main Hurdman, an international accounting and consulting firm. Ken earned a BS in Accountancy from the University of Illinois. He is a CFA charterholder. Ken is a member of the Illinois CPA Society, the CFA Society of Chicago, and the CFA Institute. He has been a guest on Bloomberg Television, Bloomberg Radio, CNBC, and WebFN. | | | | | | | | | | ![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758gra151.jpg)
Kenneth A. Tyszko, CPA, CFA |
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| | | | | | PORTFOLIO MANAGERS |
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![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758gra152.jpg)
Eric Autio | | | | | | Eric Autio Senior Equity Analyst/Portfolio Manager Eric Autio serves as a co-portfolio manager for the RBC Small Cap Value Fund and provides research and analysis for the Microcap Core, Small Cap Core, Small Cap Value and Mid Cap Value strategies at RBC GAM (US). Prior to joining RBC GAM (US) in 2014, he was Senior Equity Analyst and Partner at Buckhead Capital Management where he served as an industry generalist on the small and SMID cap value team. Previously, Eric was Research Analyst and Vice President at SunTrust Robinson Humphrey covering a diverse range of sectors including retail, industrials and business services. He also served as Director with Carolinas Real Data, managing the company’s North Carolina commercial real estate research and software products portfolio, and worked in the Capital Management Group at Wells Fargo. Eric holds a B.A. from Davidson College and an M.B.A. from the Kellogg School of Management at Northwestern University. |
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| | 1 Year | | 3 Year | | 5 Year | | 10 Year | | Since Inception | | Net Expense Ratio(a)(b) | | Gross Expense Ratio(a)(b) |
Average Annual Total Returns as of March 31, 2018 (Unaudited) | | | | | | | | | | | | | | | | | |
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RBC SMID Cap Growth Fund(c)(d) | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- Including Max Sales Charge of 5.75% | | | 7.63 | % | | | 6.73 | % | | | 9.38 | % | | | 8.84 | % | | | 10.74 | % | | | | | | | | |
- At Net Asset Value | | | 14.22 | % | | | 8.87 | % | | | 10.69 | % | | | 9.49 | % | | | 10.99 | % | | | 1.10 | % | | | 1.50 | % |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- At Net Asset Value | | | 14.57 | % | | | 9.14 | % | | | 10.96 | % | | | 9.77 | % | | | 11.30 | % | | | 0.85 | % | | | 1.07 | % |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- At Net Asset Value | | | 14.64 | % | | | 9.22 | % | | | 11.06 | % | | | 9.98 | % | | | 11.56 | % | | | 0.80 | %(h) | | | 50.53 | %(h) |
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Russell 2500 Growth Index(i) | | | 19.92 | % | | | 9.11 | % | | | 13.37 | % | | | 11.17 | % | | | 10.61 | % | | | | | | | | |
RBC Enterprise Fund(e)(f) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A(g) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- Including Max Sales Charge of 5.75% | | | 6.11 | % | | | 3.99 | % | | | 6.48 | % | | | 7.50 | % | | | 10.16 | % | | | | | | | | |
- At Net Asset Value | | | 12.56 | % | | | 6.06 | % | | | 7.75 | % | | | 8.14 | % | | | 10.35 | % | | | 1.33 | % | | | 1.96 | % |
Class I(g) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- At Net Asset Value | | | 12.85 | % | | | 6.33 | % | | | 8.03 | % | | | 8.40 | % | | | 10.62 | % | | | 1.08 | % | | | 1.28 | % |
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Russell Microcap Index(i) | | | 13.50 | % | | | 8.04 | % | | | 11.76 | % | | | 9.19 | % | | | N/A | | | | | | | | | |
RBC Small Cap Core Fund(j)(k) | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A(n) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- Including Max Sales Charge of 5.75% | | | 2.45 | % | | | 4.31 | % | | | 8.48 | % | | | 9.71 | % | | | 10.24 | % | | | | | | | | |
- At Net Asset Value | | | 8.69 | % | | | 6.38 | % | | | 9.77 | % | | | 10.36 | % | | | 10.48 | % | | | 1.15 | % | | | 1.47 | % |
Class I(n) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- At Net Asset Value | | | 8.96 | % | | | 6.65 | % | | | 10.04 | % | | | 10.64 | % | | | 10.63 | % | | | 0.90 | % | | | 1.15 | % |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- At Net Asset Value | | | 9.02 | % | | | 6.69 | % | | | 10.08 | % | | | 10.81 | % | | | 11.04 | % | | | 0.87 | %(h) | | | 6.88 | %(h) |
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Russell 2000 Index(i) | | | 11.79 | % | | | 8.39 | % | | | 11.47 | % | | | 9.84 | % | | | 10.02 | % | | | | | | | | |
RBC Microcap Value Fund(l)(m) | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A(o) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- Including Max Sales Charge of 5.75% | | | 1.35 | % | | | 3.68 | % | | | 9.27 | % | | | 8.14 | % | | | 9.13 | % | | | | | | | | |
- At Net Asset Value | | | 7.54 | % | | | 5.75 | % | | | 10.57 | % | | | 8.78 | % | | | 9.34 | % | | | 1.32 | % | | | 1.75 | % |
Class I(o) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- At Net Asset Value | | | 7.87 | % | | | 6.03 | % | | | 10.86 | % | | | 9.07 | % | | | 9.61 | % | | | 1.07 | % | | | 1.25 | % |
Russell Microcap Value Index(i) | | | 12.74 | % | | | 10.44 | % | | | 12.30 | % | | | 8.76 | % | | | N/A | | | | | | | | | |
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| | 1 Year | | 3 Year | | 5 Year | | 10 Year | | Since Inception | | Net Expense Ratio(a)(b) | | Gross Expense Ratio(a)(b) |
Average Annual Total Returns as of March 31, 2018 (Unaudited) | | | | | | | | | | | | | | | | | |
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RBC Small Cap Value Fund(p) | | | | | | | | | | | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- At Net Asset Value | | | 6.14 | % | | | 10.19 | % | | | N/A | | | | N/A | | | | 10.74 | % | | | 1.00 | % | | | 1.19 | % |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
- At Net Asset Value | | | 6.27 | % | | | 10.28 | % | | | N/A | | | | N/A | | | | 10.83 | % | | | 0.95 | %(h) | | | 1.31 | %(h) |
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Russell 2000 Value Index(i) | | | 5.13 | % | | | 7.87 | % | | | 9.96 | % | | | N/A | | | | 8.40 | % | | | | | | | | |
Performance data quoted represents past performance. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. Performance shown reflects contractual fee waivers, without such fee waivers total returns would be reduced. Performance information does not reflect the 2% fee on shares redeemed or exchanged within 30 days of purchase. If such redemption fee was included, performance would be reduced. For performance data current to the most recent month-end go to www.rbcgam.us. Please see footnotes below.
(a) | The Funds’ expenses reflect the most recent fiscal year ended September 30, 2017 except for Class R6 of SMID Cap Growth Fund , Small Cap Core Fund and Small Cap Value Fund , which is for the period from November 21,2016 (commencement of operations) to September 30, 2017. |
(b) | The advisor has contractually agreed to waive fees and/or make payments in order to keep total operating expenses at annual ratios of 1.07% for Class A, 0.82% for Class I and 0.77% for Class R6 of SMID Cap Growth Fund; 1.33% for Class A and 1.08% for Class I of Enterprise Fund; 1.15% for Class A, 0.90% for Class I and 0.87% for Class R6 of Small Cap Core Fund; 1.32% for Class A and 1.07% for Class I of Microcap Value Fund; and 0.95% for Class I and 0.90% for Class R6 of Small Cap Value Fund until January 31, 2019. |
(c) | 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). |
(d) | The since inception date (commencement of operations) of the Fund is December 31, 1990 for Class I and Class A shares and November 21, 2016 for Class R6 shares. The performance in the table for the Class R6 shares prior to November 21, 2016 reflects the performance of the Class I shares since the Fund’s inception. |
(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. |
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(g) | Performance shown for periods prior to the inception date of Class A (April 19, 2004) and Class I (September 30, 2004) is based on the performance of a class of shares that is no longer offered, adjusted to reflect the fees and expenses and any applicable sales charges of the applicable class. The inception date of the Fund and the prior class of shares is December 2, 1983. |
(i) | 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. |
(j) | 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). |
(k) | The since inception date (commencement of operations) of the Fund is August 5, 1991 for Class I and Class A shares and November 21, 2016 for Class R6 shares. The performance in the table for the Class R6 shares prior to November 21, 2016 reflects the performance of the Class I shares since the Fund’s inception. The performance of the index since inception of the Fund is calculated from July 31, 1991. |
(l) | 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). |
(m) | 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. |
(n) | Class I shares were previously designated Class S shares prior to November 27, 2012. The inception date of the Fund (Class S) is August 5, 1991. Performance shown for periods prior to the inception date of Class A (April 19, 2004) is based on the performance of Class S shares, adjusted to reflect the fees and expenses and any applicable sales charges of the applicable class. |
(o) | Class I shares were previously designated Class S shares prior to November 27, 2012. The inception date of the Fund (Class S) is September 10, 1987. Performance shown for periods prior to the inception date of Class A (April 19, 2004) is based on the performance of Class S shares, adjusted to reflect the fees and expenses and any applicable sales charges of the applicable class. |
(p) | The since inception date (commencement of operations) of the Fund is December 3, 2014 for Class I shares and November 21, 2016 for Class R6 shares. The performance in the table for the Class R6 shares prior to November 21, 2016 reflects the performance of the Class I shares since the Fund’s inception. The performance of the index since inception of the Fund is calculated from December 3, 2014. |
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The Russell 2000 Value Index measures the performance of the small capitalization value segment of the U.S. equity market. It includes those companies with lower price-to-book ratios and lower forecasted growth rates in the Russell 2000® Index, which comprises approximately 2,000 small capitalization companies in the Russell 3000® Index. You cannot invest directly in an index.
The Russell 2000 Index measures the performance of the small capitalization segment of the U.S. equity market. It comprises approximately 2,000 small capitalization companies in the Russell 3000® Index. You cannot invest directly in an index.
The Russell Microcap Index measures the performance of the micro capitalization segment of the U.S. equity market. It comprises the smallest 1,000 companies in the Russell 2000 Index plus 1,000 smaller U.S. equities. You cannot invest directly in an index.
The Russell Microcap Value Index measures the performance of the micro capitalization value segment of the U.S. equity market. It includes those companies with lower price-to-book ratios and lower forecasted growth rates in the Russell Microcap® Index, which comprises the smallest 1,000 companies in the Russell 2000® Index plus 1,000 smaller U.S. equities. You cannot invest directly in an index.
The Russell 2500 Growth Index measures the performance of the small and mid capitalization growth segment of the U.S. equity market. It includes those companies with higher price-to-book ratios and higher forecasted growth rates in the Russell 2500™ Index, which comprises the smallest 2,500 companies in the Russell 3000® Index. You cannot invest directly in an index.
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FUND STATISTICS (UNAUDITED) | | | | | | | | | | |
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RBC SMID Cap Growth Fund | | | | | | | | | | |
Long-term capital appreciation. | | | | | | | | | | Investment |
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Russell 2500 Growth Index | | | | | | | | | | Benchmark |
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![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758d157.jpg)
| | | | | | | Asset Allocation as of 3/31/18 (% of fund’s investments) & Top Five Industries (as of 3/31/18) (% of fund’s net assets) |
| | | | | | | | | | | | | | Top Ten Holdings (excluding investment companies) (as of 3/31/18) (% of fund’s net assets) |
Abiomed, Inc. | | 2.74% | | WEX, Inc. | | | 1.92% | | | | | | |
MercadoLibre, Inc. | | 2.46% | | Waters Corp. | | | 1.90% | | | | | | |
Raymond James Financial, Inc. | | 2.15% | | Teledyne Technologies, Inc. | | | 1.77% | | | | | | |
Cantel Medical Corp. | | 2.09% | | Microsemi Corp. | | | 1.74% | | | | | | |
Synopsys, Inc. | | 2.01% | | Copart, Inc. | | | 1.72% | | | | | | |
*A listing of all portfolio holdings can be found beginning on page 12 | | | | | | | | | |
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![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758d1571.jpg) | | | | | | | Growth of $250,000 Initial Investment Over 10 Years |
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The graph reflects an initial investment of $250,000 over 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 does not. The graph does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance of other classes will vary due to differences in fee structures. | | | | | | | |
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| | | | | | | | | | | | FUND STATISTICS (UNAUDITED) | |
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| | | | | | | | | | | | RBC Enterprise Fund | | | | | |
Investment Objective | | | | | | | | | | | | Long-term growth of capital and income. | |
Benchmark | | | | | | | | | | | | Russell Microcap Index | |
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Asset Allocation as of 3/31/18 (% of fund’s investments) & Top Five Industries (as of 3/31/18) (% of Fund’s net assets) | | | | | | | | | | | | ![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758d158.jpg)
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Top Ten Holdings (excluding investment companies) (as of 3/31/18) (% of Fund’s net | | | | | | | | | | | | Patrick Industries, Inc. | | | 4.64 | % | | Grand Canyon Education, Inc. | | | 3.21 | % | | | | |
| | | | | | | | | | Columbus McKinnon Corp. | | | 4.34 | % | | Preferred Bank/Los Angeles, CA | | | 2.70 | % | | | | |
| | | | | | | | | | Compass Diversified Holdings LP | | | 4.02 | % | | Pacific Premier Bancorp, Inc. | | | 2.68 | % | | | | |
| | | | | | | | | | Novanta, Inc. | | | 3.51 | % | | OMNOVA Solutions, Inc. | | | 2.56 | % | | | | |
| | | | | | | | | | Universal Stainless & Alloy Products, Inc. | | | 3.28 | % | | Callon Petroleum Co. | | | 2.41 | % | | | | |
assets) | | | | | | | | | | | | *A listing of all portfolio holdings can be found beginning on page 15 | |
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Growth of $250,000 Initial Investment Over 10 Years | | | | | | | | | | | | ![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758d1581.jpg) | |
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| | | | | | | | | | | | The graph reflects an initial investment of $250,000 over 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 does not. The graph does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance of other classes will vary due to differences in fee structures. | |
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FUND STATISTICS (UNAUDITED) | | | | | | | | | | |
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RBC Small Cap Core Fund | | | | | | | | | | |
Long-term growth of capital and income. | | | | | | | | | | Investment |
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Russell 2000 Index | | | | | | | | | | Benchmark |
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![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758d159.jpg)
| | | | | | | Asset Allocation as of 3/31/18 (% of Fund’s investments) & Top Five Industries (as of 3/31/18) (% of Fund’s net assets) |
Patrick Industries, Inc. | | 4.66% | | ACCO Brands Corp. | | | 2.99% | | | | | | | Top Ten Holdings (excluding investment companies) (as of 3/31/18) (% of Fund’s net assets) |
Columbus McKinnon Corp. | | 3.70% | | LCI Industries | | | 2.72% | | | | | | |
MKS Instruments, Inc. | | 3.65% | | Emergent BioSolutions, Inc. | | | 2.67% | | | | | | |
Compass Diversified Holdings LP | | 3.50% | | Greenbrier Cos., Inc. (The) | | | 2.42% | | | | | | |
Grand Canyon Education, Inc. | | 3.45% | | NN, Inc. | | | 2.32% | | | | | | |
*A listing of all portfolio holdings can be found beginning on page 19 | | | | | | | | | |
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![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758d1591.jpg) | | | | | | | Growth of $250,000 Initial Investment Over 10 Years |
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The graph reflects an initial investment of $250,000 over 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 does not. The graph does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance of other classes will vary due to differences in fee structures. | | | | | | | |
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| | | | | | | | | | | | FUND STATISTICS (UNAUDITED) |
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| | | | | | | | | | | | RBC Microcap Value Fund |
Investment Objective | | | | | | | | | | | | Long-term growth of capital. |
Benchmark | | | | | | | | | | | | Russell Microcap Value Index |
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Asset Allocation as of 3/31/18 (% of fund’s investments) & Top Five Industries (as of 3/31/18) (% of Fund’s net assets) | | | | | | | | | | | | ![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758d160.jpg) |
Top Ten Holdings (excluding investment companies) (as of 3/31/18) (% of Fund’s net | | | | | | | | | | | | Federal Agricultural Mortgage Corp. | | | 1.31 | % | | First Defiance Financial Corp. | | 0.93% |
| | | | | | | | | | Independence Holding Co. | | | 1.02 | % | | First Merchants Corp. | | 0.92% |
| | | | | | | | | | PAM Transportation Services, Inc. | | | 1.00 | % | | REX American Resources Corp. | | 0.91% |
| | | | | | | | | | ePlus, Inc. | | | 0.98 | % | | Superior Uniform Group, Inc. | | 0.86% |
| | | | | | | | | | Enova International, Inc. | | | 0.94 | % | | MutualFirst Financial, Inc. | | 0.84% |
assets) | | | | | | | | | | | | *A listing of all portfolio holdings can be found beginning on page 22 |
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Growth of $250,000 Initial Investment Over 10 Years | | | | | | | | | | | | ![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758d1601.jpg) |
| | | | | | | | | | | | The graph reflects an initial investment of $250,000 over 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 does not. The graph does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance of other classes will vary due to differences in fee structures. |
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10
| | | | | | | | | | | | | | |
FUND STATISTICS (UNAUDITED) | | | | | | | | | | |
| | | | | | | | | | |
RBC Small Cap Value Fund | | | | | | | | | | |
Long-term capital appreciation. | | | | | | | | | | Investment Objective |
| | | | | | | | | | | | | | |
Russell 2000 Value Index | | | | | | | | | | Benchmark |
| | | |
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758d161.jpg)
| | | | | | | Asset Allocation as of 3/31/18 (% of Fund’s investments) & Top Five Industries (as of 3/31/18) (% of Fund’s net assets) |
Compass Diversified Holdings LP | | 2.41% | | Synovus Financial Corp. | | | 2.01% | | | | | | | Top Ten Holdings (excluding investment companies) (as of 3/31/18) (% of Fund’s net assets) |
Spire, Inc. | | 2.26% | | United Community Banks, Inc. | | | 1.99% | | | | | | |
Delek US Holdings, Inc. | | 2.21% | | Callon Petroleum Co. | | | 1.96% | | | | | | |
Chemical Financial Corp. | | 2.07% | | Reliance Steel & Aluminum Co. | | | 1.95% | | | | | | |
Columbus McKinnon Corp. | | 2.04% | | Texas Capital Bancshares, Inc. | | | 1.88% | | | | | | |
*A listing of all portfolio holdings can be found beginning on page 32 | | | | | | | | | |
| | | |
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758d1611.jpg) | | | | | | | Growth of $100,000 Initial Investment Since Inception (12/3/14) |
| | | |
The graph reflects an initial investment of $100,000 over the period from December 3, 2014 (commencement of operations) to March 31, 2018 and is based on Class I shares. The Fund’s total return includes reinvested dividends and capital gains. The Fund’s total return also includes operating expenses that reduce return, while the total return of the index does not. The graph does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance of other classes will vary due to differences in fee structures. | | | | | | | |
| | | |
| | | | | | | |
| | | |
| | | | | | | |
11
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC SMID Cap Growth Fund
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
Common Stocks — 99.18% | |
Consumer Discretionary — 10.17% | |
11,350 | | Bright Horizons Family Solutions, Inc.* | | $ | 1,131,822 | |
26,540 | | Core-Mark Holding Co., Inc. | | | 564,240 | |
14,500 | | Dorman Products, Inc.* | | | 960,045 | |
13,700 | | Gentherm, Inc.* | | | 465,115 | |
30,060 | | G-III Apparel Group Ltd.* | | | 1,132,661 | |
9,720 | | LCI Industries | | | 1,012,338 | |
27,530 | | LKQ Corp.* | | | 1,044,764 | |
14,970 | | Monro, Inc. | | | 802,392 | |
19,150 | | Tractor Supply Co. | | | 1,206,833 | |
| | | | | | |
| | | | | 8,320,210 | |
| | | | | | |
Consumer Staples — 3.31% | |
8,260 | | Casey’s General Stores, Inc. | | | 906,700 | |
18,650 | | Church & Dwight Co., Inc. | | | 939,214 | |
20,020 | | United Natural Foods, Inc.* | | | 859,659 | |
| | | | | | |
| | | | | 2,705,573 | |
| | | | | | |
Energy — 1.29% | |
23,170 | | Matador Resources Co.* | | | 693,015 | |
19,680 | | Oceaneering International, Inc. | | | 364,867 | |
| | | | | | |
| | | | | 1,057,882 | |
| | | | | | |
Financials — 10.87% | |
6,050 | | Affiliated Managers Group, Inc. | | | 1,146,959 | |
17,460 | | Eagle Bancorp, Inc.* | | | 1,044,981 | |
16,980 | | FirstCash, Inc. | | | 1,379,625 | |
16,290 | | Kinsale Capital Group, Inc. | | | 836,166 | |
24,990 | | PRA Group, Inc.* | | | 949,620 | |
19,670 | | Raymond James Financial, Inc. | | | 1,758,694 | |
14,110 | | RLI Corp. | | | 894,433 | |
6,200 | | Signature Bank* | | | 880,090 | |
| | | | | | |
| | | | | 8,890,568 | |
| | | | | | |
Health Care — 22.26% | |
7,700 | | Abiomed, Inc.* | | | 2,240,623 | |
7,890 | | Bio-Techne Corp. | | | 1,191,706 | |
15,330 | | Cantel Medical Corp. | | | 1,707,915 | |
10,890 | | Charles River Laboratories International, Inc.* | | | 1,162,399 | |
18,650 | | HealthEquity, Inc.* | | | 1,129,071 | |
6,020 | | IDEXX Laboratories, Inc.* | | | 1,152,168 | |
19,970 | | Integer Holdings Corp.* | | | 1,129,303 | |
20,850 | | Integra LifeSciences Holdings Corp.* | | | 1,153,839 | |
16,270 | | Medidata Solutions, Inc.* | | | 1,021,919 | |
17,410 | | NuVasive, Inc.* | | | 908,976 | |
17,520 | | Prestige Brands Holdings, Inc.* | | | 590,774 | |
11,140 | | STERIS Plc | | | 1,040,030 | |
8,780 | | Varian Medical Systems, Inc.* | | | 1,076,867 | |
12
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC SMID Cap Growth Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
7,840 | | Waters Corp.* | | $ | 1,557,416 | |
12,920 | | West Pharmaceutical Services, Inc. | | | 1,140,707 | |
| | | | | | |
| | | | | 18,203,713 | |
| | | | | | |
Industrials — 19.57% | | | | |
5,430 | | Acuity Brands, Inc. | | | 755,802 | |
14,170 | | Applied Industrial Technologies, Inc. | | | 1,032,993 | |
17,210 | | Clean Harbors, Inc.* | | | 840,020 | |
27,700 | | Copart, Inc.* | | | 1,410,761 | |
14,960 | | Flowserve Corp. | | | 648,217 | |
9,400 | | Landstar System, Inc. | | | 1,030,710 | |
6,160 | | Middleby Corp. (The)* | | | 762,546 | |
11,450 | | MSC Industrial Direct Co., Inc., Class A | | | 1,050,080 | |
15,000 | | Multi-Color Corp. | | | 990,750 | |
10,580 | | Stericycle, Inc.* | | | 619,247 | |
15,180 | | Sun Hydraulics Corp. | | | 813,041 | |
7,740 | | Teledyne Technologies, Inc.* | | | 1,448,696 | |
32,480 | | TriMas Corp.* | | | 852,600 | |
7,200 | | WABCO Holdings, Inc.* | | | 963,864 | |
12,550 | | Wabtec Corp. | | | 1,021,570 | |
9,670 | | WageWorks, Inc.* | | | 437,084 | |
18,500 | | Woodward, Inc. | | | 1,325,710 | |
| | | | | | |
| | | | | 16,003,691 | |
| | | | | | |
Information Technology — 24.94% | | | | |
7,950 | | ANSYS, Inc.* | | | 1,245,686 | |
23,640 | | Bottomline Technologies (DE), Inc.* | | | 916,050 | |
19,270 | | Envestnet, Inc.* | | | 1,104,171 | |
5,570 | | F5 Networks, Inc.* | | | 805,478 | |
11,240 | | Guidewire Software, Inc.* | | | 908,529 | |
22,640 | | Inphi Corp.* | | | 681,464 | |
11,220 | | Jack Henry & Associates, Inc. | | | 1,357,059 | |
18,280 | | Manhattan Associates, Inc.* | | | 765,566 | |
5,640 | | MercadoLibre, Inc. | | | 2,010,040 | |
22,020 | | Microsemi Corp.* | | | 1,425,134 | |
16,800 | | National Instruments Corp. | | | 849,576 | |
17,610 | | Novanta, Inc.* | | | 918,362 | |
11,400 | | SPS Commerce, Inc.* | | | 730,398 | |
19,760 | | Synopsys, Inc.* | | | 1,644,822 | |
4,970 | | Tyler Technologies, Inc.* | | | 1,048,471 | |
4,730 | | Ultimate Software Group, Inc. (The)* | | | 1,152,701 | |
10,000 | | WEX, Inc.* | | | 1,566,200 | |
9,130 | | Zebra Technologies Corp., Class A* | | | 1,270,805 | |
| | | | | | |
| | | | | 20,400,512 | |
| | | | | | |
Materials — 5.04% | | | | |
12,030 | | AptarGroup, Inc. | | | 1,080,655 | |
13,340 | | Balchem Corp. | | | 1,090,545 | |
13
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC SMID Cap Growth Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
18,890 | | HB Fuller Co. | | $ | 939,399 | |
11,770 | | Reliance Steel & Aluminum Co. | | | 1,009,160 | |
| | | | | | |
| | | | | 4,119,759 | |
| | | | | | |
Real Estate — 1.73% | | | | |
8,230 | | CoreSite Realty Corp., REIT | | | 825,140 | |
22,200 | | Healthcare Trust of America, Inc., REIT, Class A | | | 587,190 | |
| | | | | | |
| | | | | 1,412,330 | |
| | | | | | |
| |
Total Common Stocks | | | 81,114,238 | |
| | | | | | |
(Cost $61,244,589) | | | | |
| |
Investment Company — 0.57% | | | | |
468,475 | | U.S. Government Money Market Fund, RBC Institutional Class 1(a) | | | 468,475 | |
| | | | | | |
| |
Total Investment Company | | | 468,475 | |
| | | | | | |
(Cost $468,475) | | | | |
| |
Total Investments | | $ | 81,582,713 | |
(Cost $61,713,064)(b) — 99.75% | | | | |
| |
Other assets in excess of liabilities — 0.25% | | | 202,473 | |
| | | | | | |
NET ASSETS — 100.00% | | $ | 81,785,186 | |
| | | | | | |
|
| |
(a) | Affiliated investment. |
(b) | See Notes to Financial Statements for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
* | Non-income producing security. |
Abbreviations used are defined below:
REIT — Real Estate Investment Trust
See Notes to the Financial Statements.
14
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Enterprise Fund
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
Common Stocks — 99.17% | | | | |
Consumer Discretionary — 17.58% | |
81,738 | | Delta Apparel, Inc.* | | $ | 1,472,919 | |
229,700 | | Destination XL Group, Inc.* | | | 401,975 | |
25,560 | | Grand Canyon Education, Inc.* | | | 2,681,755 | |
100,800 | | Gray Television, Inc.* | | | 1,280,160 | |
49,070 | | Lakeland Industries, Inc.* | | | 635,457 | |
29,228 | | Libbey, Inc. | | | 142,925 | |
55,664 | | Malibu Boats, Inc., Class A* | | | 1,848,601 | |
18,840 | | Motorcar Parts of America, Inc.* | | | 403,741 | |
2,960 | | Red Robin Gourmet Burgers, Inc.* | | | 171,680 | |
107,150 | | Salem Media Group, Inc. | | | 385,740 | |
35,710 | | Superior Uniform Group, Inc. | | | 938,102 | |
111,390 | | Tandy Leather Factory, Inc.* | | | 785,299 | |
37,260 | | Universal Electronics, Inc.* | | | 1,939,383 | |
130,035 | | ZAGG, Inc.* | | | 1,586,427 | |
| | | | | | |
| | | | | 14,674,164 | |
| | | | | | |
Consumer Staples — 1.54% | |
13,770 | | John B Sanfilippo & Son, Inc. | | | 796,870 | |
37,330 | | Landec Corp.* | | | 487,156 | |
| | | | | | |
| | | | | 1,284,026 | |
| | | | | | |
Energy — 5.23% | |
152,120 | | Callon Petroleum Co.* | | | 2,014,069 | |
45,640 | | Gulfport Energy Corp.* | | | 440,426 | |
132,986 | | Ring Energy, Inc.* | | | 1,908,349 | |
| | | | | | |
| | | | | 4,362,844 | |
| | | | | | |
Financials — 21.50% | |
13,090 | | Atlas Financial Holdings, Inc.* | | | 135,482 | |
73,969 | | CoBiz Financial, Inc. | | | 1,449,792 | |
204,350 | | Compass Diversified Holdings LP | | | 3,351,340 | |
43,220 | | First Bancorp/Southern Pines, NC | | | 1,540,793 | |
35,010 | | German American Bancorp, Inc. | | | 1,167,584 | |
54,173 | | Heritage Financial Corp. | | | 1,657,694 | |
32,036 | | Mercantile Bank Corp. | | | 1,065,197 | |
50,724 | | Northrim BanCorp, Inc. | | | 1,752,514 | |
55,552 | | Pacific Premier Bancorp, Inc.* | | | 2,233,190 | |
35,080 | | Preferred Bank/Los Angeles, CA | | | 2,252,136 | |
44,570 | | State Bank Financial Corp. | | | 1,337,546 | |
| | | | | | |
| | | | | 17,943,268 | |
| | | | | | |
Health Care — 2.21% | |
38,710 | | Invacare Corp. | | | 673,554 | |
21,400 | | Surmodics, Inc.* | | | 814,270 | |
4,350 | | US Physical Therapy, Inc. | | | 353,655 | |
| | | | | | |
| | | | | 1,841,479 | |
| | | | | | |
15
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Enterprise Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
Industrials — 27.95% | | | | |
22,570 | | Air Transport Services Group, Inc.* | | $ | 526,332 | |
10,530 | | AZZ, Inc. | | | 460,161 | |
9,250 | | Barrett Business Services, Inc. | | | 766,640 | |
23,690 | | Blue Bird Corp.* | | | 561,453 | |
94,910 | | Broadwind Energy, Inc.* | | | 208,802 | |
44,418 | | Casella Waste Systems, Inc., Class A* | | | 1,038,493 | |
27,340 | | CBIZ, Inc.* | | | 498,955 | |
101,155 | | Columbus McKinnon Corp. | | | 3,625,395 | |
53,040 | | Ducommun, Inc.* | | | 1,611,355 | |
19,270 | | Ennis, Inc. | | | 379,619 | |
31,557 | | Greenbrier Cos., Inc. (The) | | | 1,585,739 | |
163,640 | | Hudson Technologies, Inc.* | | | 808,382 | |
34,770 | | InnerWorkings, Inc.* | | | 314,669 | |
24,000 | | Insteel Industries, Inc. | | | 663,120 | |
26,807 | | Lydall, Inc.* | | | 1,293,438 | |
25,783 | | Marten Transport Ltd. | | | 587,852 | |
68,290 | | NN, Inc. | | | 1,638,960 | |
21,963 | | NV5 Global, Inc.* | | | 1,224,437 | |
62,564 | | Patrick Industries, Inc.* | | | 3,869,583 | |
31,570 | | PGT Innovations, Inc.* | | | 588,780 | |
125,010 | | Radiant Logistics, Inc.* | | | 483,789 | |
20,590 | | Willdan Group, Inc.* | | | 583,727 | |
| | | | | | |
| | | | | 23,319,681 | |
| | | | | | |
Information Technology — 11.32% | | | | |
1,362 | | Aspen Technology, Inc.* | | | 107,448 | |
173,741 | | Glu Mobile, Inc.* | | | 655,004 | |
108,120 | | Mitek Systems, Inc.* | | | 800,088 | |
56,083 | | Novanta, Inc.* | | | 2,924,729 | |
26,630 | | PC Connection, Inc. | | | 665,750 | |
96,526 | | Sapiens International Corp. NV | | | 823,367 | |
51,136 | | TESSCO Technologies, Inc. | | | 1,183,798 | |
8,220 | | Tyler Technologies, Inc.* | | | 1,734,091 | |
5,565 | | Vishay Precision Group, Inc.* | | | 173,350 | |
116,730 | | Xplore Technologies Corp.* | | | 378,205 | |
| | | | | | |
| | | | | 9,445,830 | |
| | | | | | |
Materials — 8.17% | | | | |
23,910 | | FutureFuel Corp. | | | 286,681 | |
35,217 | | Koppers Holdings, Inc.* | | | 1,447,419 | |
203,570 | | OMNOVA Solutions, Inc.* | | | 2,137,485 | |
99,588 | | Universal Stainless & Alloy Products, Inc.* | | | 2,738,670 | |
3,406 | | US Concrete, Inc.* | | | 205,722 | |
| | | | | | |
| | | | | 6,815,977 | |
| | | | | | |
Real Estate — 2.65% | | | | |
36,820 | | Community Healthcare Trust, Inc., REIT | | | 947,747 | |
14,817 | | Gramercy Property Trust, REIT | | | 321,974 | |
16
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Enterprise Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
17,930 | | LaSalle Hotel Properties, REIT | | $ | 520,149 | |
31,830 | | UMH Properties, Inc., REIT | | | 426,840 | |
| | | | | | |
| | | | | 2,216,710 | |
| | | | | | |
Utilities — 1.02% | | | | |
18,300 | | Unitil Corp. | | | 849,303 | |
| | | | | | |
| |
Total Common Stocks | | | 82,753,282 | |
| | | | | | |
(Cost $44,824,127) | | | | | | |
| |
Exchange Traded Funds — 0.47% | | | | |
6,470 | | SPDR S&P Regional Banking | | | 390,723 | |
| | | | | | |
Total Exchange Traded Funds | | | 390,723 | |
| | | | | | |
(Cost $128,547) | | | | | | |
| |
Rights/Warrants — 0.00% | | | | |
12,460 | | Imperial Holdings, Inc. Warrants, Expire 10/6/19, *,(a),(b) | | | 0 | |
| | | | | | |
Total Rights/Warrants | | | 0 | |
| | | | | | |
(Cost $0) | | | | | | |
Investment Company — 0.26% | | | | |
217,875 | | U.S. Government Money Market Fund, RBC Institutional Class 1(c) | | | 217,875 | |
| | | | | | |
| |
Total Investment Company | | | 217,875 | |
| | | | | | |
(Cost $217,875) | | | | |
| |
Total Investments | | $ | 83,361,880 | |
(Cost $45,170,549)(d) — 99.90% | | | | |
| |
Other assets in excess of liabilities — 0.10% | | | 80,046 | |
| | | | | | |
NET ASSETS — 100.00% | | $ | 83,441,926 | |
| | | | | | |
|
| |
(a) | The Pricing Committee has fair valued this security under procedures established by the Fund’s Board of Trustees. |
(b) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(c) | Affiliated investment. |
(d) | See Notes to Financial Statements for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
* | Non-income producing security. |
17
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Enterprise Fund (cont.)
March 31, 2018 (Unaudited)
Abbreviations used are defined below:
REIT - Real Estate Investment Trust
See Notes to the Financial Statements.
18
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Small Cap Core Fund
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
Common Stocks — 98.41% | |
Consumer Discretionary — 20.81% | |
47,160 | | Carriage Services, Inc. | | $ | 1,304,446 | |
10,380 | | Cavco Industries, Inc.* | | | 1,803,525 | |
24,830 | | Dave & Buster’s Entertainment, Inc.* | | | 1,036,404 | |
451,589 | | Destination XL Group, Inc.* | | | 790,281 | |
63,574 | | Fox Factory Holding Corp.* | | | 2,218,733 | |
42,830 | | G-III Apparel Group Ltd.* | | | 1,613,834 | |
91,319 | | Grand Canyon Education, Inc.* | | | 9,581,189 | |
375,678 | | Gray Television, Inc.* | | | 4,771,111 | |
72,440 | | LCI Industries | | | 7,544,626 | |
54,500 | | Libbey, Inc. | | | 266,505 | |
144,139 | | Malibu Boats, Inc., Class A* | | | 4,786,856 | |
81,910 | | Motorcar Parts of America, Inc.* | | | 1,755,331 | |
63,960 | | Nexstar Media Group, Inc., Class A | | | 4,253,340 | |
56,852 | | Steven Madden Ltd. | | | 2,495,803 | |
95,350 | | Stoneridge, Inc.* | | | 2,631,660 | |
69,788 | | Unifi, Inc.* | | | 2,529,815 | |
92,781 | | Universal Electronics, Inc.* | | | 4,829,251 | |
292,454 | | ZAGG, Inc.* | | | 3,567,939 | |
| | | | | | |
| | | | | 57,780,649 | |
| | | | | | |
Consumer Staples — 0.31% | |
66,972 | | Landec Corp.* | | | 873,985 | |
| | | | | | |
|
Energy — 3.76% | |
274,550 | | Callon Petroleum Co.* | | | 3,635,042 | |
26,230 | | Gulfport Energy Corp.* | | | 253,120 | |
374,472 | | Ring Energy, Inc.* | | | 5,373,673 | |
25,200 | | RSP Permian, Inc.* | | | 1,181,376 | |
| | | | | | |
| | | | | 10,443,211 | |
| | | | | | |
Financials — 18.15% | |
111,170 | | AMERISAFE, Inc. | | | 6,142,142 | |
16,020 | | BancFirst Corp. | | | 850,662 | |
102,640 | | Chemical Financial Corp. | | | 5,612,355 | |
4,730 | | Community Bank System, Inc. | | | 253,339 | |
592,100 | | Compass Diversified Holdings LP | | | 9,710,440 | |
14,799 | | Hanmi Financial Corp. | | | 455,069 | |
42,010 | | James River Group Holdings Ltd. | | | 1,490,095 | |
37,830 | | LegacyTexas Financial Group, Inc. | | | 1,619,881 | |
122,666 | | Pacific Premier Bancorp, Inc.* | | | 4,931,173 | |
26,841 | | Pinnacle Financial Partners, Inc. | | | 1,723,192 | |
13,840 | | ProAssurance Corp. | | | 671,932 | |
50,031 | | Safeguard Scientifics, Inc.* | | | 612,880 | |
56,150 | | Texas Capital Bancshares, Inc.* | | | 5,047,885 | |
19
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Small Cap Core Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
191,400 | | United Community Banks, Inc. | | $ | 6,057,810 | |
60,690 | | Wintrust Financial Corp. | | | 5,222,375 | |
| | | | | | |
| | | | | 50,401,230 | |
| | | | | | |
Health Care — 8.33% | | | | |
140,730 | | Emergent BioSolutions, Inc.* | | | 7,409,434 | |
96,610 | | Globus Medical, Inc., Class A* | | | 4,813,110 | |
86,510 | | Invacare Corp. | | | 1,505,274 | |
37,040 | | Masimo Corp.* | | | 3,257,668 | |
69,750 | | West Pharmaceutical Services, Inc. | | | 6,158,228 | |
| | | | | | |
| | | | | 23,143,714 | |
| | | | | | |
Industrials — 27.37% | | | | |
662,090 | | ACCO Brands Corp. | | | 8,309,229 | |
146,335 | | Astronics Corp.* | | | 5,458,296 | |
36,196 | | AZZ, Inc. | | | 1,581,765 | |
69,460 | | BMC Stock Holdings, Inc.* | | | 1,357,943 | |
286,485 | | Columbus McKinnon Corp. | | | 10,267,622 | |
150,641 | | Ducommun, Inc.* | | | 4,576,474 | |
27,400 | | Dycom Industries, Inc.* | | | 2,949,062 | |
62,400 | | EnerSys | | | 4,328,688 | |
133,866 | | Greenbrier Cos., Inc. (The) | | | 6,726,767 | |
128,878 | | Insteel Industries, Inc. | | | 3,560,899 | |
24,430 | | Interface, Inc. | | | 615,636 | |
61,676 | | Lydall, Inc.* | | | 2,975,867 | |
112,800 | | NCI Building Systems, Inc.* | | | 1,996,560 | |
268,819 | | NN, Inc. | | | 6,451,656 | |
7,700 | | Old Dominion Freight Line, Inc. | | | 1,131,669 | |
209,254 | | Patrick Industries, Inc.* | | | 12,942,360 | |
20,210 | | Spirit Airlines, Inc.* | | | 763,534 | |
| | | | | | |
| | | | | 75,994,027 | |
| | | | | | |
Information Technology — 12.49% | | | | |
23,280 | | Ambarella, Inc.* | | | 1,140,487 | |
27,600 | | Coherent, Inc.* | | | 5,172,240 | |
74,300 | | InterDigital, Inc. | | | 5,468,480 | |
87,548 | | MKS Instruments, Inc. | | | 10,124,926 | |
50,100 | | Synaptics, Inc.* | | | 2,291,073 | |
176,364 | | Synchronoss Technologies, Inc.* | | | 1,860,640 | |
10,830 | | Take-Two Interactive Software, Inc.* | | | 1,058,958 | |
86,727 | | TESSCO Technologies, Inc. | | | 2,007,730 | |
26,426 | | Tyler Technologies, Inc.* | | | 5,574,829 | |
| | | | | | |
| | | | | 34,699,363 | |
| | | | | | |
Materials — 4.92% | | | | |
122,610 | | Ferro Corp.* | | | 2,847,004 | |
80,692 | | FutureFuel Corp. | | | 967,497 | |
80,799 | | Koppers Holdings, Inc.* | | | 3,320,839 | |
20
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Small Cap Core Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
420,289 | | OMNOVA Solutions, Inc.* | | $ | 4,413,034 | |
77,091 | | Universal Stainless & Alloy Products, Inc.* | | | 2,120,003 | |
| | | | | | |
| | | | | 13,668,377 | |
| | | | | | |
Real Estate — 0.63% | | | | |
26,760 | | CubeSmart, REIT | | | 754,632 | |
63,850 | | Physicians Realty Trust, REIT | | | 994,144 | |
| | | | | | |
| | | | | 1,748,776 | |
| | | | | | |
Telecommunication Services — 1.05% | | | | |
272,930 | | Vonage Holdings Corp.* | | | 2,906,704 | |
| | | | | | |
| |
Utilities — 0.59% | | | | |
22,720 | | Spire, Inc. | | | 1,642,656 | |
| | | | | | |
| |
Total Common Stocks | | | 273,302,692 | |
| | | | | | |
(Cost $178,390,631) | | | | |
| |
Exchange Traded Funds — 0.06% | | | | |
1,040 | | iShares Russell 2000 Index Fund | | | 157,903 | |
| | | | | | |
Total Exchange Traded Funds | | | 157,903 | |
| | | | | | |
(Cost $87,288) | | | | |
| |
Investment Company — 0.74% | | | | |
2,047,727 | | U.S. Government Money Market Fund, RBC Institutional Class 1(a) | | | 2,047,727 | |
| | | | | | |
| |
Total Investment Company | | | 2,047,727 | |
| | | | | | |
(Cost $2,047,727) | | | | |
| |
Total Investments | | $ | 275,508,322 | |
(Cost $180,525,646)(b) — 99.21% | | | | |
| |
Other assets in excess of liabilities — 0.79% | | | 2,194,095 | |
| | | | | | |
NET ASSETS — 100.00% | | $ | 277,702,417 | |
| | | | | | |
|
| |
(a) | Affiliated investment. |
(b) | See Notes to Financial Statements for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
* | Non-income producing security. |
Abbreviations used are defined below:
REIT - Real Estate Investment Trust
See Notes to the Financial Statements.
21
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Microcap Value Fund
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
Common Stocks — 99.79% | | | | |
Consumer Discretionary — 20.72% | | | | |
6,200 | | AH Belo Corp., Class A | | $ | 31,930 | |
600 | | Ambow Education Holding Ltd., ADR*,(a) | | | 1,920 | |
11,800 | | AMC Entertainment Holdings, Inc., Class A | | | 165,790 | |
10,900 | | America’s Car-Mart, Inc.* | | | 549,905 | |
21,300 | | Anemostat Door Products*,(a),(b),(c) | | | 0 | |
21,300 | | Anemostat, Inc.*,(a),(b),(c) | | | 0 | |
21,200 | | Barnes & Noble, Inc. | | | 104,940 | |
32,100 | | Beazer Homes USA, Inc.* | | | 511,995 | |
3 | | Biglari Holdings, Inc.* | | | 1,225 | |
21,200 | | Boot Barn Holdings, Inc.* | | | 375,876 | |
13,427 | | Bowl America, Inc., Class A | | | 198,720 | |
27,800 | | Bridgepoint Education, Inc.* | | | 187,372 | |
47,330 | | Build-A-Bear Workshop, Inc.* | | | 433,069 | |
6,700 | | Caleres, Inc. | | | 225,120 | |
36,600 | | Carriage Services, Inc. | | | 1,012,356 | |
29,003 | | Century Communities, Inc.* | | | 868,640 | |
79,000 | | Container Store Group, Inc. (The)* | | | 429,760 | |
8,800 | | Core-Mark Holding Co., Inc. | | | 187,088 | |
28,300 | | CSS Industries, Inc. | | | 495,250 | |
14,130 | | Culp, Inc. | | | 431,672 | |
30,200 | | Delta Apparel, Inc.* | | | 544,204 | |
53,000 | | Entercom Communications Corp., Class A | | | 511,450 | |
23,600 | | Entravision Communications Corp., Class A | | | 110,920 | |
35,000 | | Eros International Plc* | | | 381,500 | |
24,243 | | EW Scripps Co. (The), Class A | | | 290,674 | |
17,900 | | Express, Inc.* | | | 128,164 | |
14,800 | | Flexsteel Industries, Inc. | | | 585,784 | |
4,400 | | Fred’s, Inc., Class A | | | 13,156 | |
5,300 | | Genesco, Inc.* | | | 215,180 | |
2,170 | | Hamilton Beach Brands Holding Co., Class A | | | 46,047 | |
2,180 | | Harte-Hanks, Inc.* | | | 20,100 | |
24,230 | | Haverty Furniture Cos., Inc. | | | 488,234 | |
970 | | Helen of Troy Ltd.* | | | 84,390 | |
10,400 | | hhgregg, Inc.* | | | 26 | |
19,500 | | Hooker Furniture Corp. | | | 715,650 | |
23,000 | | J Alexander’s Holdings, Inc.* | | | 263,350 | |
6,100 | | JAKKS Pacific, Inc.* | | | 12,810 | |
13,120 | | Johnson Outdoors, Inc., Class A | | | 813,440 | |
41,700 | | K12, Inc.* | | | 591,306 | |
23,500 | | Kid Brands, Inc.* | | | 35 | |
45,700 | | Lakeland Industries, Inc.* | | | 591,815 | |
95,270 | | Lazare Kaplan International, Inc.*,(a),(b),(c) | | | 0 | |
7,900 | | La-Z-Boy, Inc. | | | 236,605 | |
26,200 | | Lifetime Brands, Inc. | | | 324,880 | |
10,900 | | Luby’s, Inc.* | | | 30,302 | |
19,200 | | M/I Homes, Inc.* | | | 611,520 | |
30,700 | | Marcus Corp. (The) | | | 931,745 | |
22
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Microcap Value Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
32,070 | | MarineMax, Inc.* | | $ | 623,761 | |
7,500 | | McRae Industries, Inc., Class A | | | 257,925 | |
2,285 | | Mecklermedia Corp.* | | | 0 | |
21,300 | | Mestek, Inc.* | | | 644,325 | |
9,600 | | Modine Manufacturing Co.* | | | 203,040 | |
21,800 | | Movado Group, Inc. | | | 837,120 | |
8,400 | | Nautilus, Inc.* | | | 112,980 | |
28,600 | | New Home Co., Inc. (The)* | | | 316,888 | |
361 | | Nexstar Media Group, Inc., Class A | | | 24,007 | |
10,300 | | Nobility Homes, Inc. | | | 206,000 | |
41,000 | | Orleans Homebuilders, Inc.*,(a),(b),(c) | | | 0 | |
8,450 | | Perry Ellis International, Inc.* | | | 218,010 | |
40,800 | | Pier 1 Imports, Inc. | | | 131,376 | |
119,400 | | Point.360* | | | 7,283 | |
51,900 | | Red Lion Hotels Corp.* | | | 506,025 | |
33,800 | | Rocky Brands, Inc. | | | 725,010 | |
14,200 | | Saga Communications, Inc., Class A | | | 528,950 | |
39,150 | | Salem Media Group, Inc. | | | 140,940 | |
35,000 | | Shiloh Industries, Inc.* | | | 304,500 | |
7,500 | | Sonic Automotive, Inc., Class A | | | 142,125 | |
35,100 | | Stage Stores, Inc. | | | 76,518 | |
14,300 | | Standard Motor Products, Inc. | | | 680,251 | |
15,900 | | Stein Mart, Inc. | | | 24,168 | |
4,000 | | Stoneridge, Inc.* | | | 110,400 | |
14,600 | | Strattec Security Corp. | | | 530,710 | |
32,500 | | Superior Industries International, Inc. | | | 432,250 | |
43,439 | | Superior Uniform Group, Inc. | | | 1,141,143 | |
55,300 | | Tilly’s, Inc., Class A | | | 624,890 | |
9,800 | | Tower International, Inc. | | | 271,950 | |
39,700 | | Townsquare Media, Inc., Class A | | | 314,821 | |
65,200 | | Trans World Entertainment Corp.* | | | 81,500 | |
40,300 | | TravelCenters of America LLC* | | | 145,080 | |
29,100 | | Unifi, Inc.* | | | 1,054,875 | |
19,100 | | Universal Technical Institute, Inc.* | | | 56,154 | |
30,000 | | Universal Travel Group*,(a),(b),(c) | | | 0 | |
23,100 | | VOXX International Corp.* | | | 114,345 | |
1,397 | | Walking Co. Holdings, Inc. (The)* | | | 559 | |
11,000 | | Weyco Group, Inc. | | | 369,600 | |
22,800 | | William Lyon Homes, Class A* | | | 626,772 | |
6,580 | | Zoe’s Kitchen, Inc.* | | | 95,015 | |
| | | | | | |
| | | | | 27,437,181 | |
| | | | | | |
Consumer Staples — 2.74% | | | | |
6,490 | | Alliance One International, Inc.* | | | 169,065 | |
7,350 | | Andersons, Inc. (The) | | | 243,285 | |
21,715 | | Central Garden and Pet Co.* | | | 933,745 | |
21,300 | | Ingles Markets, Inc., Class A | | | 721,005 | |
34,400 | | Natural Grocers By Vitamin Cottage, Inc.* | | | 246,304 | |
15,300 | | Oil-Dri Corp. of America | | | 614,907 | |
23
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Microcap Value Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
73,000 | | Royal Hawaiian Orchards LP* | | $ | 169,360 | |
18,000 | | Smart & Final Stores, Inc.* | | | 99,900 | |
25,140 | | SpartanNash Co. | | | 432,659 | |
| | | | | | |
| | | | | 3,630,230 | |
| | | | | | |
Energy — 3.07% | | | | |
45,500 | | Aegean Marine Petroleum Network, Inc. | | | 102,375 | |
27,000 | | Ardmore Shipping Corp.* | | | 205,200 | |
16 | | Basic Energy Services, Inc.* | | | 231 | |
24,540 | | Callon Petroleum Co.* | | | 324,910 | |
15,700 | | Dorian LPG Ltd.* | | | 117,593 | |
43,360 | | Ensco Plc, Class A | | | 190,350 | |
12,100 | | Era Group, Inc.* | | | 113,135 | |
7,500 | | Global Partners LP | | | 115,125 | |
2,950 | | Harvest Natural Resources, Inc.(a),(b),(c) | | | 0 | |
8,200 | | Hornbeck Offshore Services, Inc.* | | | 23,862 | |
9,900 | | Midstates Petroleum Co., Inc.* | | | 131,967 | |
2,300 | | NACCO Industries, Inc., Class A | | | 75,555 | |
24,070 | | Natural Gas Services Group, Inc.* | | | 574,070 | |
13,100 | | Newpark Resources, Inc.* | | | 106,110 | |
53,100 | | North American Energy Partners, Inc. | | | 281,430 | |
9,200 | | Panhandle Oil and Gas, Inc., Class A | | | 177,560 | |
7,600 | | PHI, Inc.* | | | 77,368 | |
11,900 | | PHI, Inc., Non voting* | | | 121,856 | |
16,550 | | REX American Resources Corp.* | | | 1,204,840 | |
1,230 | | Sanchez Production Partners L.P. | | | 12,731 | |
131 | | SilverBow Resources, Inc.* | | | 3,812 | |
17,600 | | Teekay Tankers Ltd., Class A | | | 20,944 | |
18,880 | | W&T Offshore, Inc.* | | | 83,638 | |
| | | | | | |
| | | | | 4,064,662 | |
| | | | | | |
Financials — 29.11% | | | | |
39,150 | | Affirmative Insurance Holdings, Inc.* | | | 0 | |
34,870 | | AG Mortgage Investment Trust, Inc., REIT | | | 605,692 | |
10,500 | | Ameris Bancorp | | | 555,450 | |
61,400 | | Anworth Mortgage Asset Corp., REIT | | | 294,720 | |
21,868 | | Apollo Commercial Real Estate Finance, Inc., REIT | | | 393,187 | |
89,400 | | Arbor Realty Trust, Inc., REIT | | | 788,508 | |
46,700 | | Ares Commercial Real Estate Corp., REIT | | | 576,745 | |
8,100 | | Arlington Asset Investment Corp., Class A | | | 89,424 | |
6,997 | | Asta Funding, Inc. | | | 25,889 | |
17,400 | | Baldwin & Lyons, Inc., Class B | | | 382,800 | |
31,700 | | Banc of California, Inc. | | | 611,810 | |
12,400 | | Banco Latinoamericano de Comercio Exterior SA, Class E | | | 353,400 | |
25,400 | | Bancorp, Inc. (The)* | | | 274,320 | |
4,928 | | Banner Corp. | | | 273,455 | |
100,000 | | Beverly Hills Bancorp, Inc.*,(a) | | | 100 | |
13,200 | | Blue Capital Reinsurance Holdings Ltd. | | | 161,040 | |
33,600 | | California First National Bancorp | | | 530,880 | |
24
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Microcap Value Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
38,000 | | Capitol Bancorp Ltd.*,(a),(b),(c) | | $ | 0 | |
35,400 | | Cherry Hill Mortgage Investment Corp., REIT | | | 620,916 | |
71,550 | | Citizens, Inc.* | | | 523,746 | |
101,200 | | Consumer Portfolio Services, Inc.* | | | 381,524 | |
2,189 | | Cowen Inc.* | | | 28,895 | |
31,777 | | Donegal Group, Inc., Class A | | | 502,077 | |
8,444 | | Donegal Group, Inc., Class B | | | 118,216 | |
58,640 | | Dynex Capital, Inc., REIT | | | 388,783 | |
24,500 | | Ellington Residential Mortgage, REIT | | | 268,520 | |
31,050 | | EMC Insurance Group, Inc. | | | 840,834 | |
56,600 | | Enova International, Inc.* | | | 1,248,030 | |
19,900 | | Federal Agricultural Mortgage Corp., Class C | | | 1,731,698 | |
56,900 | | Federated National Holding Co. | | | 897,313 | |
21,600 | | First Defiance Financial Corp. | | | 1,238,112 | |
9,400 | | First Financial Corp. | | | 391,040 | |
9,151 | | First Horizon National Corp. | | | 172,313 | |
29,100 | | First Merchants Corp. | | | 1,213,470 | |
38,000 | | First Place Financial Corp.*,(a),(b),(c) | | | 0 | |
660 | | Flagstar Bancorp, Inc.* | | | 23,364 | |
16,700 | | Franklin Financial Network, Inc.* | | | 544,420 | |
62,820 | | GAIN Capital Holdings, Inc. | | | 424,035 | |
13,800 | | GAMCO Investors, Inc., Class A | | | 342,654 | |
25,200 | | Great Ajax Corp., REIT | | | 341,460 | |
2,626 | | Great Western Bancorp, Inc. | | | 105,749 | |
8,000 | | Greenhill & Co., Inc. | | | 148,000 | |
7,100 | | Guaranty Bancorp | | | 201,285 | |
17,300 | | HCI Group, Inc. | | | 660,168 | |
29,270 | | Heritage Insurance Holdings, Inc. | | | 443,733 | |
2,858 | | Hilltop Holdings, Inc. | | | 67,049 | |
6,040 | | HomeTrust Bancshares, Inc.* | | | 157,342 | |
4,400 | | Houlihan Lokey, Inc. | | | 196,240 | |
37,822 | | Independence Holding Co. | | | 1,348,354 | |
7,100 | | Infinity Property & Casualty Corp. | | | 840,640 | |
5,334 | | Investors Title Co. | | | 1,066,267 | |
41,600 | | JMP Group, Inc. | | | 210,080 | |
16,500 | | Kansas City Life Insurance Co. | | | 742,335 | |
69,200 | | Manning & Napier, Inc. | | | 242,200 | |
28,890 | | Marlin Business Services Corp. | | | 819,031 | |
24,300 | | Medley Management, Inc., Class A | | | 138,510 | |
4,238 | | MFC Bancorp Ltd.* | | | 26,276 | |
20,200 | | MidSouth Bancorp, Inc. | | | 255,530 | |
30,600 | | MutualFirst Financial, Inc. | | | 1,109,250 | |
2,500 | | National Security Group, Inc. (The) | | | 39,250 | |
2,700 | | National Western Life Group, Inc., Class A | | | 823,176 | |
12,400 | | Navigators Group, Inc. (The) | | | 714,860 | |
22,067 | | Nicholas Financial, Inc.* | | | 200,148 | |
1,915 | | OceanFirst Financial Corp. | | | 51,226 | |
45,900 | | OFG Bancorp. | | | 479,655 | |
8,200 | | Oppenheimer Holdings, Inc., Class A | | | 211,150 | |
25
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Microcap Value Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
23,900 | | Orchid Island Capital, Inc., REIT | | $ | 176,143 | |
7,900 | | Pacific Mercantile Bancorp* | | | 75,445 | |
37,600 | | PennyMac Financial Services, Inc., Class A* | | | 851,640 | |
23,200 | | Peoples Bancorp, Inc. | | | 822,440 | |
13,572 | | People’s United Financial, Inc. | | | 253,253 | |
7,300 | | Piper Jaffray Cos. | | | 606,265 | |
15,900 | | Provident Financial Holdings, Inc. | | | 287,631 | |
34,200 | | Regional Management Corp.* | | | 1,088,928 | |
5,100 | | Resource Capital Corp., REIT | | | 48,501 | |
9,100 | | Safety Insurance Group, Inc. | | | 699,335 | |
29,626 | | Simmons First National Corp., Class A | | | 842,860 | |
2,238 | | South State Corp. | | | 190,901 | |
22,013 | | Sterling Bancorp | | | 496,393 | |
10,600 | | Stewart Information Services Corp. | | | 465,764 | |
8,543 | | Sutherland Asset Management Corp., REIT | | | 129,426 | |
13,400 | | Unico American Corp.* | | | 106,530 | |
84,216 | | United Community Financial Corp. | | | 830,370 | |
19,000 | | United Western Bancorp, Inc.*,(a),(b),(c) | | | 0 | |
14,630 | | Walker & Dunlop, Inc. | | | 869,315 | |
14,041 | | Western Asset Mortgage Capital Corp., REIT | | | 136,057 | |
16,800 | | Winthrop Realty Trust REIT*,(a),(c) | | | 121,968 | |
| | | | | | |
| | | | | 38,555,509 | |
| | | | | | |
Health Care — 2.76% | | | | |
21,339 | | Aceto Corp. | | | 162,176 | |
30,600 | | Adeptus Health, Inc., Class A*,(a),(c) | | | 0 | |
11,000 | | American Shared Hospital Services* | | | 28,050 | |
17,900 | | AngioDynamics, Inc.* | | | 308,775 | |
42,660 | | BioScrip, Inc.* | | | 104,944 | |
15,000 | | CONMED Corp. | | | 949,950 | |
5,300 | | Cross Country Healthcare, Inc.* | | | 58,883 | |
50,350 | | CryoLife, Inc.* | | | 1,009,517 | |
11,562 | | Five Star Senior Living, Inc.* | | | 15,031 | |
1,700 | | Invacare Corp. | | | 29,580 | |
5,300 | | Kewaunee Scientific Corp. | | | 180,465 | |
9,662 | | Kindred Healthcare, Inc. | | | 88,407 | |
15,000 | | MedCath Corp.*,(a),(b),(c) | | | 0 | |
27,500 | | Triple-S Management Corp., Class B* | | | 718,850 | |
| | | | | | |
| | | | | 3,654,628 | |
| | | | | | |
Industrials — 19.87% | | | | |
3,000 | | Aegion Corp.* | | | 68,730 | |
8,800 | | Alamo Group, Inc. | | | 967,120 | |
20,383 | | Allied Motion Technologies, Inc. | | | 810,224 | |
930 | | Altra Industrial Motion Corp. | | | 42,734 | |
56,500 | | Ameresco, Inc., Class A* | | | 734,500 | |
8,100 | | AMREP Corp.* | | | 58,239 | |
66,000 | | Arc Document Solutions, Inc.* | | | 145,200 | |
4,500 | | Argan, Inc. | | | 193,275 | |
26
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Microcap Value Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
17,700 | | BlueLinx Holdings, Inc.* | | $ | 576,843 | |
26,400 | | CAI International, Inc.* | | | 561,264 | |
45,800 | | CBIZ, Inc.* | | | 835,850 | |
8,774 | | CECO Environmental Corp. | | | 39,044 | |
50,680 | | Celadon Group, Inc. | | | 187,516 | |
10,678 | | Cenveo, Inc.* | | | 682 | |
2,400 | | Chicago Rivet & Machine Co. | | | 73,464 | |
2,060 | | Comfort Systems USA, Inc. | | | 84,975 | |
28,878 | | Compx International, Inc. | | | 398,516 | |
3,300 | | Douglas Dynamics, Inc. | | | 143,055 | |
25,500 | | Ducommun, Inc.* | | | 774,690 | |
2 | | Eagle Bulk Shipping, Inc.* | | | 10 | |
13,100 | | Eastern Co. (The) | | | 373,350 | |
8,480 | | Ecology and Environment, Inc., Class A | | | 98,368 | |
12,100 | | Encore Wire Corp. | | | 686,070 | |
37,240 | | Ennis, Inc. | | | 733,628 | |
1,300 | | EnPro Industries, Inc. | | | 100,594 | |
18,400 | | Espey Manufacturing & Electronics Corp. | | | 482,080 | |
27,000 | | Federal Signal Corp. | | | 594,540 | |
19,900 | | Fly Leasing Ltd., ADR* | | | 264,869 | |
414 | | Genco Shipping & Trading Ltd.* | | | 5,887 | |
13,400 | | Gibraltar Industries, Inc.* | | | 453,590 | |
22,100 | | Global Power Equipment Group, Inc.* | | | 61,659 | |
5,580 | | Golden Ocean Group Ltd. | | | 44,361 | |
12,360 | | GP Strategies Corp.* | | | 279,954 | |
15,100 | | Graham Corp. | | | 323,442 | |
10,610 | | Greenbrier Cos., Inc. (The) | | | 533,152 | |
26,500 | | Griffon Corp. | | | 483,625 | |
19,250 | | Hardinge, Inc. | | | 352,660 | |
5,400 | | Hill International, Inc.* | | | 30,780 | |
8,430 | | Kadant, Inc. | | | 796,635 | |
4,800 | | Kimball International, Inc., Class B | | | 81,792 | |
3,908 | | Kratos Defense & Security Solutions, Inc.* | | | 40,213 | |
16,200 | | LS Starrett Co. (The), Class A | | | 109,350 | |
10,200 | | LSC Communications, Inc. | | | 177,990 | |
44,250 | | LSI Industries, Inc. | | | 358,868 | |
16,900 | | Lydall, Inc.* | | | 815,425 | |
40,120 | | Marten Transport Ltd. | | | 914,736 | |
32,410 | | Meritor, Inc.* | | | 666,350 | |
34,999 | | Miller Industries, Inc. | | | 874,975 | |
16,000 | | Mistras Group, Inc.* | | | 303,040 | |
3,900 | | National Presto Industries, Inc. | | | 365,625 | |
29,200 | | NN, Inc. | | | 700,800 | |
2,500 | | Northwest Pipe Co.* | | | 43,250 | |
16,700 | | Orion Group Holdings, Inc.* | | | 110,053 | |
36,400 | | PAM Transportation Services, Inc.* | | | 1,323,140 | |
2 | | Paragon Shipping, Inc., Class A* | | | 0 | |
13,505 | | Patrick Industries, Inc.* | | | 835,284 | |
25,000 | | RCM Technologies, Inc. | | | 144,250 | |
27
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Microcap Value Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
52,600 | | Roadrunner Transportation Systems, Inc.* | | $ | 133,604 | |
15,200 | | Rush Enterprises, Inc., Class A* | | | 645,848 | |
22,000 | | Safe Bulkers, Inc.* | | | 69,740 | |
25,690 | | Sparton Corp.* | | | 447,263 | |
3,200 | | Standex International Corp. | | | 305,120 | |
7,282 | | Team, Inc.* | | | 100,128 | |
26,400 | | Textainer Group Holdings Ltd.* | | | 447,480 | |
4,300 | | Universal Forest Products, Inc. | | | 139,535 | |
7,400 | | USA Truck, Inc.* | | | 188,626 | |
11,100 | | Vectrus, Inc.* | | | 413,364 | |
13,600 | | Viad Corp. | | | 713,320 | |
11,900 | | Volt Information Sciences, Inc.* | | | 36,295 | |
15,000 | | Willdan Group, Inc.* | | | 425,250 | |
28,700 | | Willis Lease Finance Corp.* | | | 983,836 | |
| | | | | | |
| | | | | 26,309,725 | |
| | | | | | |
Information Technology — 9.36% | | | | |
5,200 | | Black Box Corp. | | | 10,400 | |
15,000 | | Blucora, Inc.* | | | 369,000 | |
38,600 | | CMTSU Liquidation, Inc.* | | | 212 | |
50,000 | | Comarco, Inc.* | | | 850 | |
3,900 | | Communications Systems, Inc. | | | 14,313 | |
29,800 | | CTS Corp. | | | 810,560 | |
44,050 | | DHI Group, Inc.* | | | 70,480 | |
25,600 | | Digi International, Inc.* | | | 263,680 | |
162 | | DropCar, Inc.* | | | 337 | |
24,700 | | Edgewater Technology, Inc.* | | | 137,085 | |
4,450 | | Electro Scientific Industries, Inc.* | | | 86,019 | |
16,640 | | ePlus, Inc.* | | | 1,292,928 | |
40,800 | | Everi Holdings, Inc.* | | | 268,056 | |
4,200 | | Fabrinet* | | | 131,796 | |
24,200 | | Insight Enterprises, Inc.* | | | 845,306 | |
13,000 | | JinkoSolar Holding Co. Ltd., ADR* | | | 237,250 | |
4,800 | | Kemet Corp.* | | | 87,024 | |
26,100 | | Kimball Electronics, Inc.* | | | 421,515 | |
9,200 | | Magal Security Systems Ltd.* | | | 53,084 | |
17,800 | | Methode Electronics, Inc. | | | 695,980 | |
10,022 | | Novanta, Inc.* | | | 522,647 | |
35,415 | | Optical Cable Corp.* | | | 102,704 | |
27,500 | | Park Electrochemical Corp. | | | 463,100 | |
31,300 | | PC Connection, Inc. | | | 782,500 | |
28,700 | | Perceptron, Inc.* | | | 245,385 | |
31,730 | | Photronics, Inc.* | | | 261,772 | |
36,774 | | Reis, Inc. | | | 788,802 | |
10,500 | | Richardson Electronics Ltd. | | | 83,475 | |
16,400 | | Rubicon Project, Inc. (The)* | | | 29,520 | |
24,600 | | Rudolph Technologies, Inc.* | | | 681,420 | |
60,100 | | Sigmatron International, Inc.* | | | 348,580 | |
2,433 | | STR Holdings, Inc.* | | | 706 | |
28
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Microcap Value Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
4,269 | | SYKES Enterprises, Inc.* | | $ | 123,545 | |
7,960 | | Systemax, Inc. | | | 227,258 | |
25,600 | | TESSCO Technologies, Inc. | | | 592,640 | |
15,700 | | Vishay Precision Group, Inc.* | | | 489,055 | |
40,600 | | XO Group, Inc.* | | | 842,450 | |
5,366 | | Zedge, Inc., Class B* | | | 17,171 | |
| | | | | | |
| | | | | 12,398,605 | |
| | | | | | |
Materials — 4.75% | |
43,590 | | American Vanguard Corp. | | | 880,518 | |
3,000 | | Ampco-Pittsburgh Corp. | | | 26,700 | |
37,000 | | Blue Earth Refineries, Inc.*,(a),(b),(c) | | | 0 | |
6,629 | | Centerra Gold, Inc.* | | | 37,956 | |
15,700 | | China Green Agriculture, Inc.* | | | 19,625 | |
8,400 | | Friedman Industries, Inc. | | | 49,308 | |
40,990 | | FutureFuel Corp. | | | 491,470 | |
4,300 | | Hawkins, Inc. | | | 151,145 | |
5,100 | | Innospec, Inc. | | | 349,860 | |
7,900 | | KMG Chemicals, Inc. | | | 473,605 | |
9,500 | | Materion Corp. | | | 484,975 | |
2,790 | | Myers Industries, Inc. | | | 59,008 | |
840 | | Neenah, Inc. | | | 65,856 | |
26 | | North American Palladium Ltd.* | | | 195 | |
16,100 | | Olympic Steel, Inc. | | | 330,211 | |
36,990 | | OMNOVA Solutions, Inc.* | | | 388,395 | |
7,600 | | Rafael Holdings, Inc., Class B* | | | 36,860 | |
16,500 | | Rayonier Advanced Materials, Inc. | | | 354,255 | |
10,900 | | Real Industry, Inc.* | | | 3,379 | |
17,800 | | Ryerson Holding Corp.* | | | 145,070 | |
2,200 | | Stepan Co. | | | 182,996 | |
37,000 | | Trecora Resources* | | | 503,200 | |
25,900 | | Tredegar Corp. | | | 464,905 | |
7,800 | | Universal Stainless & Alloy Products, Inc.* | | | 214,500 | |
3,470 | | US Concrete, Inc.* | | | 209,588 | |
3,200 | | Vulcan International Corp. | | | 368,800 | |
| | | | | | |
| | | | | 6,292,380 | |
| | | | | | |
Real Estate — 3.41% | |
13,200 | | Agree Realty Corp., REIT | | | 634,128 | |
37,100 | | Cedar Realty Trust, Inc., REIT | | | 146,174 | |
1,506 | | CIM Commercial Trust Corp., REIT | | | 19,051 | |
6,000 | | Community Healthcare Trust, Inc., REIT | | | 154,440 | |
4,600 | | CorEnergy Infrastructure Trust, Inc., REIT | | | 172,684 | |
18,200 | | Farmland Partners, Inc., REIT | | | 151,970 | |
921 | | Forestar Group, Inc.* | | | 19,479 | |
11,342 | | Getty Realty Corp., REIT | | | 286,046 | |
8,000 | | Jernigan Capital, Inc., REIT | | | 144,800 | |
23,500 | | MedEquities Realty Trust, Inc., REIT | | | 246,985 | |
17,880 | | Monmouth Real Estate Investment Corp., REIT | | | 268,915 | |
29
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Microcap Value Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | �� | | Value | |
30,600 | | One Liberty Properties, Inc., REIT | | $ | 676,260 | |
17,400 | | Ramco-Gershenson Properties Trust, REIT | | | 215,064 | |
8,100 | | RE/MAX Holdings, Inc., Class A | | | 489,645 | |
11,000 | | UMH Properties, Inc., REIT | | | 147,510 | |
10,800 | | Urstadt Biddle Properties, Inc., REIT, Class A | | | 208,440 | |
51,800 | | Whitestone, REIT | | | 538,202 | |
| | | | | | |
| | | | | 4,519,793 | |
| | | | | | |
Telecommunication Services — 0.36% | | | | |
15,200 | | IDT Corp., Class B | | | 95,304 | |
25,800 | | Spok Holdings, Inc. | | | 385,710 | |
| | | | | | |
| | | | | 481,014 | |
| | | | | | |
Utilities — 3.64% | | | | |
1,570 | | American States Water Co. | | | 83,304 | |
2,008 | | California Water Service Group | | | 74,798 | |
14,685 | | Chesapeake Utilities Corp. | | | 1,033,090 | |
16,200 | | Connecticut Water Service, Inc. | | | 980,586 | |
22,300 | | Middlesex Water Co. | | | 818,410 | |
16,100 | | SJW Corp. | | | 848,631 | |
21,026 | | Unitil Corp. | | | 975,817 | |
| | | | | | |
| | | | | 4,814,636 | |
| | | | | | |
| |
Total Common Stocks | | | 132,158,363 | |
| | | | | | |
(Cost $95,624,782) | | | | |
| |
Exchange Traded Funds — 0.04% | | | | |
250 | | iShares Russell Microcap Index Fund | | | 24,013 | |
1,400 | | PowerShares Zacks Micro Cap Portfolio | | | 26,561 | |
| | | | | | |
Total Exchange Traded Funds | | | 50,574 | |
| | | | | | |
(Cost $17,982) | | | | |
| |
Rights/Warrants — 0.00% | | | | |
444 | | Basic Energy Services, Inc., Warrants, Expire 12/23/23* | | | 320 | |
724 | | Eagle Bulk Shipping, Inc., Warrants, Expire 10/15/21* | | | 58 | |
992 | | Genco Shipping & Trading Ltd., Warrants, Expire 12/31/21* | | | 407 | |
6,100 | | Media General, Inc. Rights, Expire 12/31/18*,(a),(c) | | | 0 | |
703 | | SilverBow Resources, Inc., Warrants, Expire 12/31/49* | | | 70 | |
703 | | SilverBow Resources, Inc., Warrants, Expire 12/31/49* | | | 112 | |
| | | | | | |
Total Rights/Warrants | | | 967 | |
| | | | | | |
(Cost $73,487) | | | | |
30
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Microcap Value Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
Corporate Bonds — 0.00% | | | | |
Financial — 0.00% | | | | |
$1,947 | | Trenwick America Corp.*,(a),(b),(c) | | $ | 0 | |
1,625 | | Trenwick America Corp.*,(a),(b),(c) | | | 0 | |
| | | | | | |
| | | | | 0 | |
| | | | | | |
| |
Total Corporate Bonds | | | 0 | |
| | | | | | |
(Cost $0) | | | | |
| | |
Shares | | | | | |
Investment Company — 0.11% | | | | |
150,851 | | U.S. Government Money Market Fund, RBC Institutional Class 1(d) | | | 150,851 | |
| | | | | | |
| |
Total Investment Company | | | 150,851 | |
| | | | | | |
(Cost $150,851) | | | | |
| |
Total Investments | | $ | 132,360,755 | |
(Cost $95,867,102)(e) — 99.94% | | | | |
| |
Other assets in excess of liabilities — 0.06% | | | 81,971 | |
| | | | | | |
NET ASSETS — 100.00% | | $ | 132,442,726 | |
| | | | |
|
| |
(a) | The Pricing Committee has fair valued this security under procedures established by the Fund’s Board of Trustees. |
(b) | Security delisted or issuer in bankruptcy. |
(c) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(d) | Affiliated investment. |
(e) | See Notes to Financial Statements for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
* | Non-income producing security. |
Abbreviations used are defined below:
ADR - American Depositary Receipt
REIT - Real Estate Investment Trust
See Notes to the Financial Statements.
31
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Small Cap Value Fund
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
Common Stocks — 97.63% | | | | |
Consumer Discretionary — 11.53% | | | | |
31,380 | | Carriage Services, Inc. | | $ | 867,971 | |
37,880 | | Dana, Inc. | | | 975,789 | |
12,620 | | Dave & Buster’s Entertainment, Inc.* | | | 526,759 | |
96,800 | | Gray Television, Inc.* | | | 1,229,360 | |
43,180 | | Libbey, Inc. | | | 211,150 | |
44,400 | | Motorcar Parts of America, Inc.* | | | 951,492 | |
33,700 | | New Media Investment Group, Inc. | | | 577,618 | |
11,900 | | Red Robin Gourmet Burgers, Inc.* | | | 690,200 | |
31,930 | | Steven Madden Ltd. | | | 1,401,727 | |
25,540 | | Tandy Leather Factory, Inc.* | | | 180,057 | |
59,460 | | Taylor Morrison Home Corp., Class A* | | | 1,384,229 | |
29,153 | | Unifi, Inc.* | | | 1,056,796 | |
15,690 | | Universal Electronics, Inc.* | | | 816,664 | |
| | | | | | |
| | | | | 10,869,812 | |
| | | | | | |
Consumer Staples — 1.63% | | | | |
37,280 | | Dean Foods Co. | | | 321,354 | |
20,980 | | John B Sanfilippo & Son, Inc. | | | 1,214,112 | |
| | | | | | |
| | | | | 1,535,466 | |
| | | | | | |
Energy — 6.19% | | | | |
139,730 | | Callon Petroleum Co.* | | | 1,850,025 | |
51,300 | | Delek US Holdings, Inc. | | | 2,087,910 | |
44,657 | | Gulfport Energy Corp.* | | | 430,940 | |
79,849 | | Ring Energy, Inc.* | | | 1,145,833 | |
6,860 | | RSP Permian, Inc.* | | | 321,597 | |
| | | | | | |
| | | | | 5,836,305 | |
| | | | | | |
Financials — 27.55% | | | | |
12,240 | | American Financial Group, Inc. | | | 1,373,573 | |
28,060 | | AMERISAFE, Inc. | | | 1,550,315 | |
35,760 | | Chemical Financial Corp. | | | 1,955,357 | |
62,740 | | CoBiz Financial, Inc. | | | 1,229,704 | |
13,040 | | Community Bank System, Inc. | | | 698,422 | |
138,290 | | Compass Diversified Holdings LP | | | 2,267,956 | |
34,290 | | First Busey Corp. | | | 1,019,099 | |
32,209 | | Hanmi Financial Corp. | | | 990,427 | |
46,130 | | Heritage Financial Corp. | | | 1,411,578 | |
23,140 | | James River Group Holdings Ltd. | | | 820,776 | |
33,193 | | LegacyTexas Financial Group, Inc. | | | 1,421,324 | |
27,750 | | Mercantile Bank Corp. | | | 922,687 | |
5,250 | | Northrim BanCorp, Inc. | | | 181,388 | |
42,540 | | Pacific Premier Bancorp, Inc.* | | | 1,710,108 | |
9,930 | | ProAssurance Corp. | | | 482,102 | |
8,330 | | Reinsurance Group of America, Inc. | | | 1,282,820 | |
49,330 | | Sterling Bancorp | | | 1,112,391 | |
37,930 | | Synovus Financial Corp. | | | 1,894,224 | |
32
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Small Cap Value Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
19,760 | | Texas Capital Bancshares, Inc.* | | $ | 1,776,424 | |
59,270 | | United Community Banks, Inc. | | | 1,875,895 | |
| | | | | | |
| | | | | 25,976,570 | |
| | | | | | |
Health Care — 4.67% | | | | |
28,670 | | Globus Medical, Inc., Class A* | | | 1,428,340 | |
75,830 | | Invacare Corp. | | | 1,319,442 | |
3,540 | | Teleflex, Inc. | | | 902,629 | |
8,590 | | West Pharmaceutical Services, Inc. | | | 758,411 | |
| | | | | | |
| | | | | 4,408,822 | |
| | | | | | |
Industrials — 18.93% | | | | |
136,538 | | ACCO Brands Corp. | | | 1,713,552 | |
46,300 | | BMC Stock Holdings, Inc.* | | | 905,165 | |
54,780 | | Casella Waste Systems, Inc., Class A* | | | 1,280,756 | |
53,610 | | Columbus McKinnon Corp. | | | 1,921,382 | |
32,803 | | Ducommun, Inc.* | | | 996,555 | |
25,270 | | EnerSys | | | 1,752,980 | |
29,670 | | Ennis, Inc. | | | 584,499 | |
29,400 | | Greenbrier Cos., Inc. (The) | | | 1,477,350 | |
34,640 | | Herman Miller, Inc. | | | 1,106,748 | |
6,460 | | Kirby Corp.* | | | 497,097 | |
17,380 | | Lydall, Inc.* | | | 838,585 | |
60,316 | | Marten Transport Ltd. | | | 1,375,205 | |
60,640 | | NN, Inc. | | | 1,455,360 | |
18,182 | | Patrick Industries, Inc.* | | | 1,124,557 | |
21,620 | | Spirit Airlines, Inc.* | | | 816,804 | |
| | | | | | |
| | | | | 17,846,595 | |
| | | | | | |
Information Technology — 7.47% | | | | |
5,640 | | Coherent, Inc.* | | | 1,056,936 | |
39,280 | | Cohu, Inc. | | | 895,977 | |
23,440 | | Novanta, Inc.* | | | 1,222,396 | |
58,260 | | PC Connection, Inc. | | | 1,456,500 | |
37,890 | | Sapiens International Corp. NV | | | 323,202 | |
14,360 | | Synaptics, Inc.* | | | 656,683 | |
5,570 | | Take-Two Interactive Software, Inc.* | | | 544,634 | |
28,380 | | Vishay Precision Group, Inc.* | | | 884,037 | |
| | | | | | |
| | | | | 7,040,365 | |
| | | | | | |
Materials — 6.68% | | | | |
15,290 | | Kaiser Aluminum Corp. | | | 1,542,761 | |
29,039 | | Koppers Holdings, Inc.* | | | 1,193,503 | |
164,130 | | OMNOVA Solutions, Inc.* | | | 1,723,365 | |
21,400 | | Reliance Steel & Aluminum Co. | | | 1,834,836 | |
| | | | | | |
| | | | | 6,294,465 | |
| | | | | | |
Real Estate — 7.84% | | | | |
46,350 | | Columbia Property Trust, Inc., REIT | | | 948,321 | |
34,939 | | Community Healthcare Trust, Inc., REIT | | | 899,330 | |
33
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
RBC Small Cap Value Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Shares | | | | Value | |
10,530 | | CubeSmart, REIT | | $ | 296,946 | |
111,550 | | DiamondRock Hospitality Co., REIT | | | 1,164,582 | |
6,430 | | EastGroup Properties, Inc., REIT | | | 531,504 | |
20,066 | | Gramercy Property Trust, REIT | | | 436,034 | |
13,120 | | LaSalle Hotel Properties, REIT | | | 380,611 | |
24,470 | | National Storage Affiliates Trust, REIT | | | 613,708 | |
32,620 | | Physicians Realty Trust, REIT | | | 507,893 | |
25,750 | | STAG Industrial, Inc., REIT | | | 615,940 | |
11,050 | | Terreno Realty Corp., REIT | | | 381,335 | |
46,080 | | UMH Properties, Inc., REIT | | | 617,933 | |
| | | | | | |
| | | | | 7,394,137 | |
| | | | | | |
Utilities — 5.14% | | | | |
19,040 | | NorthWestern Corp. | | | 1,024,352 | |
41,620 | | Portland General Electric Co. | | | 1,686,026 | |
29,508 | | Spire, Inc. | | | 2,133,429 | |
| | | | | | |
| | | | | 4,843,807 | |
| | | | | | |
| |
Total Common Stocks | | | 92,046,344 | |
| | | | | | |
(Cost $88,405,640) | | | | |
| |
Investment Company — 1.74% | | | | |
1,638,216 | | U.S. Government Money Market Fund, RBC Institutional Class 1(a) | | | 1,638,216 | |
| | | | | | |
| |
Total Investment Company | | | 1,638,216 | |
| | | | | | |
(Cost $1,638,216) | | | | |
| |
Total Investments | | $ | 93,684,560 | |
(Cost $90,043,856)(b) — 99.37% | | | | |
| |
Other assets in excess of liabilities — 0.63% | | | 593,959 | |
| | | | | | |
| |
NET ASSETS — 100.00% | | $ | 94,278,519 | |
| | | | | | |
|
| |
(a) | Affiliated investment. |
(b) | See Notes to Financial Statements for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
* | Non-income producing security. |
Abbreviations used are defined below:
REIT - Real Estate Investment Trust
See Notes to the Financial Statements.
34
Statements of Assets and Liabilities
March 31, 2018 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | |
| | RBC SMID Cap Growth Fund | | | | | RBC Enterprise Fund | | | | | RBC Small Cap Core Fund | |
Assets: | | | | | | | | | | | | | | | | | | | | | | |
Investments in securities, at value: | | | | | | | | | | | | | | | | | | | | | | |
Unaffiliated investments (cost $61,244,589, $44,952,674 and $178,477,919, respectively) | | | | $ | 81,114,238 | | | | | | | $ | 83,144,005 | | | | | | | $ | 273,460,595 | |
Affiliated investments (cost $468,475, $217,875 and $2,047,727, respectively) | | | | | 468,475 | | | | | | | | 217,875 | | | | | | | | 2,047,727 | |
Cash | | | | | 5,759 | | | | | | | | 3,677 | | | | | | | | 27,389 | |
Interest and dividend receivable | | | | | 16,953 | | | | | | | | 19,600 | | | | | | | | 56,765 | |
Receivable for capital shares issued | | | | | 2,100 | | | | | | | | — | | | | | | | | 56,906 | |
Receivable for investments sold | | | | | 249,046 | | | | | | | | 161,684 | | | | | | | | 2,312,499 | |
Prepaid expenses and other assets | | | | | 23,646 | | | | | | | | 18,245 | | | | | | | | 27,393 | |
| | | | | | | | | | | | | | | | | | | | | | |
Total Assets | | | | | 81,880,217 | | | | | | | | 83,565,086 | | | | | | | | 277,989,274 | |
| | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | |
Payable for capital shares redeemed | | | | | 2,084 | | | | | | | | 14,170 | | | | | | | | 11,364 | |
Payable for investments purchased | | | | | — | | | | | | | | 806 | | | | | | | | — | |
Accrued expenses and other payables: | | | | | | | | | | | | | | | | | | | | | | |
Investment advisory fees | | | | | 37,448 | | | | | | | | 57,185 | | | | | | | | 167,353 | |
Accounting fees | | | | | 7,185 | | | | | | | | 7,227 | | | | | | | | 9,690 | |
Audit fees | | | | | 22,283 | | | | | | | | 22,283 | | | | | | | | 22,283 | |
Distribution fees | | | | | 10,389 | | | | | | | | 258 | | | | | | | | 4,634 | |
Custodian fees | | | | | — | | | | | | | | 1,175 | | | | | | | | 1,086 | |
Shareholder reports | | | | | — | | | | | | | | — | | | | | | | | 7,296 | |
Transfer agent fees | | | | | 8,479 | | | | | | | | 15,171 | | | | | | | | 54,105 | |
Other | | | | | 7,163 | | | | | | | | 4,885 | | | | | | | | 9,046 | |
| | | | | | | | | | | | | | | | | | | | | | |
Total Liabilities | | | | | 95,031 | | | | | | | | 123,160 | | | | | | | | 286,857 | |
| | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | | | $ | 81,785,186 | | | | | | | $ | 83,441,926 | | | | | | | $ | 277,702,417 | |
| | | | | | | | | | | | | | | | | | | | | | |
Net Assets Consists of: | | | | | | | | | | | | | | | | | | | | | | |
Capital | | | | $ | 59,891,257 | | | | | | | $ | 41,011,817 | | | | | | | $ | 176,265,038 | |
Distributions in excess of net investment income | | | | | (328,332 | ) | | | | | | | (93,318 | ) | | | | | | | (57,946 | ) |
Accumulated net realized gains from investment transactions | | | | | 2,352,612 | | | | | | | | 4,332,096 | | | | | | | | 6,512,649 | |
Net unrealized appreciation on investments | | | | | 19,869,649 | | | | | | | | 38,191,331 | | | | | | | | 94,982,676 | |
| | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | | | $ | 81,785,186 | | | | | | | $ | 83,441,926 | | | | | | | $ | 277,702,417 | |
| | | | | | | | | | | | | | | | | | | | | | |
35
Statements of Assets and Liabilities (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | RBC SMID Cap Growth Fund | | | RBC Enterprise Fund | | | RBC Small Cap Core Fund | |
Net Assets | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | $ | 11,625,945 | | | | | | | $ | 1,035,937 | | | | | | | $ | 13,201,730 | |
Class I | | | | | | | 70,147,087 | | | | | | | | 82,405,989 | | | | | | | | 263,323,703 | |
Class R6 | | | | | | | 12,154 | | | | | | | | N/A | | | | | | | | 1,176,984 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | $ | 81,785,186 | | | | | | | $ | 83,441,926 | | | | | | | $ | 277,702,417 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shares Outstanding (Unlimited number of shares authorized, no par value): | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | 931,472 | | | | | | | | 47,997 | | | | | | | | 343,340 | |
Class I | | | | | | | 4,959,988 | | | | | | | | 3,665,580 | | | | | | | | 6,569,244 | |
Class R6 | | | | | | | 858 | | | | | | | | N/A | | | | | | | | 29,318 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | 5,892,318 | | | | | | | | 3,713,577 | | | | | | | | 6,941,902 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Values and Redemption Prices Per Share: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A(a) | | | | | | $ | 12.48 | | | | | | | $ | 21.58 | | | | | | | $ | 38.45 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Class I | | | | | | $ | 14.14 | | | | | | | $ | 22.48 | | | | | | | $ | 40.08 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Class R6 | | | | | | $ | 14.16 | (b) | | | | | | $ | N/A | | | | | | | $ | 40.15 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Maximum Offering Price Per Share: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | $ | 13.24 | | | | | | | $ | 22.90 | | | | | | | $ | 40.80 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Maximum Sales Charge - Class A | | | | | | | 5.75 | % | | | | | | | 5.75 | % | | | | | | | 5.75 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
(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. |
(b) | Net asset value is calculated using unrounded net assets of $12,153.75 divided by the unrounded shares outstanding of 858.458. |
36
| | |
FINANCIAL STATEMENTS | | |
Statements of Assets and Liabilities (cont.) |
March 31, 2018 (Unaudited)
| | | | | | | | | | |
| | RBC Microcap Value Fund | | RBC Small Cap Value Fund |
Assets: | | | | | | | | | | |
Investments in securities, at value: | | | | | | | | | | |
Unaffiliated investments (cost $95,716,251 and $88,405,640, respectively) | | | $ | 132,209,904 | | | | $ | 92,046,344 | |
Affiliated investments (cost $150,851 and $1,638,216, respectively) | | | | 150,851 | | | | | 1,638,216 | |
Cash | | | | 51,416 | | | | | 26,415 | |
Interest and dividend receivable | | | | 203,744 | | | | | 100,770 | |
Receivable for capital shares issued | | | | 8,000 | | | | | 418,064 | |
Receivable for investments sold | | | | — | | | | | 765,943 | |
Prepaid expenses and other assets | | | | 22,494 | | | | | 25,231 | |
| | | | | | | | | | |
Total Assets | | | | 132,646,409 | | | | | 95,020,983 | |
| | | | | | | | | | |
Liabilities: | | | | | | | | | | |
Payable for capital shares redeemed | | | | 29,607 | | | | | 262,080 | |
Payable for investments purchased | | | | — | | | | | 381,517 | |
Accrued expenses and other payables: | | | | | | | | | | |
Investment advisory fees | | | | 87,373 | | | | | 60,045 | |
Accounting fees | | | | 7,833 | | | | | 7,250 | |
Audit fees | | | | 22,283 | | | | | 22,283 | |
Distribution fees | | | | 3,894 | | | | | — | |
Custodian fees | | | | 511 | | | | | 4,888 | |
Shareholder reports | | | | 2,977 | | | | | 561 | |
Transfer agent fees | | | | 41,269 | | | | | — | |
Other | | | | 7,936 | | | | | 3,840 | |
| | | | | | | | | | |
Total Liabilities | | | | 203,683 | | | | | 742,464 | |
| | | | | | | | | | |
Net Assets | | | $ | 132,442,726 | | | | $ | 94,278,519 | |
| | | | | | | | | | |
Net Assets Consists of: | | | | | | | | | | |
Capital | | | $ | 89,687,516 | | | | $ | 90,012,674 | |
Undistributed net investment income | | | | 320,378 | | | | | 116,830 | |
Accumulated net realized gains from investment transactions | | | | 5,941,179 | | | | | 508,311 | |
Net unrealized appreciation on investments | | | | 36,493,653 | | | | | 3,640,704 | |
| | | | | | | | | | |
Net Assets | | | $ | 132,442,726 | | | | $ | 94,278,519 | |
| | | | | | | | | | |
37
| | |
FINANCIAL STATEMENTS | | |
Statements of Assets and Liabilities (cont.) |
March 31, 2018 (Unaudited)
| | | | | | | | | | | | | | | | |
| | RBC Microcap Value Fund | | | | | | RBC Small Cap Value Fund | |
Net Assets | | | | | | | | | | | | | | | | |
Class A | | | | $ | 6,314,253 | | | | | | | | | $ | N/A | |
Class I | | | | | 126,128,473 | | | | | | | | | | 88,345,727 | |
Class R6 | | | | | N/A | | | | | | | | | | 5,932,792 | |
| | | | | | | | | | | | | | | | |
Total | | | | $ | 132,442,726 | | | | | | | | | $ | 94,278,519 | |
| | | | | | | | | | | | | | | | |
Shares Outstanding (Unlimited number of shares authorized, no par value): | | | | | | | | | | | | | | | | |
Class A | | | | | 213,022 | | | | | | | | | | N/A | |
Class I | | | | | 4,252,851 | | | | | | | | | | 6,783,111 | |
Class R6 | | | | | N/A | | | | | | | | | | 452,872 | |
| | | | | | | | | | | | | | | | |
Total | | | | | 4,465,873 | | | | | | | | | | 7,235,983 | |
| | | | | | | | | | | | | | | | |
Net Asset Values and Redemption Prices Per Share: | | | | | | | | | | | | | | | | |
Class A(a) | | | | $ | 29.64 | | | | | | | | | $ | N/A | |
| | | | | | | | | | | | | | | | |
Class I | | | | $ | 29.66 | | | | | | | | | $ | 13.02 | |
| | | | | | | | | | | | | | | | |
Class R6 | | | | $ | N/A | | | | | | | | | $ | 13.10 | |
| | | | | | | | | | | | | | | | |
Maximum Offering Price Per Share: | | | | | | | | | | | | | | | | |
Class A | | | | $ | 31.45 | | | | | | | | | $ | N/A | |
| | | | | | | | | | | | | | | | |
Maximum Sales Charge - Class A | | | | | 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. |
See Notes to the Financial Statements.
38
| | |
FINANCIAL STATEMENTS | | |
Statements of Operations |
For the Six Months Ended March 31, 2018
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | RBC SMID Cap | | | | | | RBC Enterprise | | | | | | RBC Small Cap | |
| | Growth Fund | | | | | | Fund | | | | | | Core Fund | |
Investment Income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividend income - unaffiliated | | | | | | $ | 229,875 | | | | | | | | | | | $ | 380,777 | | | | | | | | | | | $ | 1,540,844 | |
Dividend income - affiliated | | | | | | | 7,793 | | | | | | | | | | | | 5,338 | | | | | | | | | | | | 10,965 | |
Foreign tax withholding | | | | | | | — | | | | | | | | | | | | (5,290 | ) | | | | | | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Investment Income | | | | | | | 237,668 | | | | | | | | | | | | 380,825 | | | | | | | | | | | | 1,551,809 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment advisory fees | | | | | | | 279,507 | | | | | | | | | | | | 408,641 | | | | | | | | | | | | 1,226,719 | |
Distribution fees–Class A | | | | | | | 14,599 | | | | | | | | | | | | 1,724 | | | | | | | | | | | | 17,548 | |
Accounting fees | | | | | | | 17,255 | | | | | | | | | | | | 17,643 | | | | | | | | | | | | 24,053 | |
Audit fees | | | | | | | 17,814 | | | | | | | | | | | | 17,814 | | | | | | | | | | | | 17,814 | |
Custodian fees | | | | | | | 1,816 | | | | | | | | | | | | 2,124 | | | | | | | | | | | | 4,643 | |
Insurance fees | | | | | | | 2,120 | | | | | | | | | | | | 2,120 | | | | | | | | | | | | 2,120 | |
Legal fees | | | | | | | 6,552 | | | | | | | | | | | | 3,367 | | | | | | | | | | | | 22,333 | |
Registrations and filing fees | | | | | | | 27,624 | | | | | | | | | | | | 18,899 | | | | | | | | | | | | 29,218 | |
Shareholder reports | | | | | | | 5,345 | | | | | | | | | | | | 7,964 | | | | | | | | | | | | 14,404 | |
Transfer agent fees–Class A | | | | | | | 14,759 | | | | | | | | | | | | 3,462 | | | | | | | | | | | | 12,187 | |
Transfer agent fees–Class I | | | | | | | 22,444 | | | | | | | | | | | | 51,704 | | | | | | | | | | | | 165,503 | |
Transfer agent fees–Class R6 | | | | | | | 2,278 | | | | | | | | | | | | — | | | | | | | | | | | | 2,286 | |
Trustees’ fees and expenses | | | | | | | 2,945 | | | | | | | | | | | | 3,272 | | | | | | | | | | | | 9,897 | |
Tax expense | | | | | | | 1,875 | | | | | | | | | | | | 1,875 | | | | | | | | | | | | 1,875 | |
Other fees | | | | | | | 3,432 | | | | | | | | | | | | 2,617 | | | | | | | | | | | | 4,310 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses before fee waiver/reimbursement | | | | | | | 420,365 | | | | | | | | | | | | 543,226 | | | | | | | | | | | | 1,554,910 | |
Expenses waived/reimbursed by: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advisor | | | | | | | (78,343 | ) | | | | | | | | | | | (69,083 | ) | | | | | | | | | | | (238,647 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net expenses | | | | | | | 342,022 | | | | | | | | | | | | 474,143 | | | | | | | | | | | | 1,316,263 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income (Loss) | | | | | | | (104,354 | ) | | | | | | | | | | | (93,318 | ) | | | | | | | | | | | 235,546 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Realized/Unrealized Gains/(Losses): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized gains from investment transactions | | | | | | | 2,518,846 | | | | | | | | | | | | 6,903,058 | | | | | | | | | | | | 10,185,983 | |
Net change in unrealized appreciation/(depreciation) on investments | | | | | | | 2,603,794 | | | | | | | | | | | | (7,869,730 | ) | | | | | | | | | | | (4,632,153 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized/unrealized gains/(losses) | | | | | | | 5,122,640 | | | | | | | | | | | | (966,672 | ) | | | | | | | | | | | 5,553,830 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | | $ | 5,018,286 | | | | | | | | | | | $ | (1,059,990 | ) | | | | | | | | | | $ | 5,789,376 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
39
| | |
FINANCIAL STATEMENTS | | |
Statements of Operations (cont.) |
For the Six Months Ended March 31, 2018 (Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | RBC Microcap | | | | | | RBC Small Cap | |
| | Value Fund | | | | | | Value Fund | |
Investment Income: | | | | | | | | | | | | | | | | | | | | |
Dividend income - unaffiliated | | | | | | $ | 1,484,817 | | | | | | | | | | | $ | 786,846 | |
Dividend income - affiliated | | | | | | | 7,679 | | | | | | | | | | | | 16,770 | |
Foreign tax withholding | | | | | | | (476 | ) | | | | | | | | | | | (1,808 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total Investment Income | | | | | | | 1,492,020 | | | | | | | | | | | | 801,808 | |
| | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | |
Investment advisory fees | | | | | | | 632,357 | | | | | | | | | | | | 337,937 | |
Distribution fees–Class A | | | | | | | 8,551 | | | | | | | | | | | | — | |
Accounting fees | | | | | | | 26,039 | | | | | | | | | | | | 17,502 | |
Audit fees | | | | | | | 17,814 | | | | | | | | | | | | 17,814 | |
Custodian fees | | | | | | | 2,277 | | | | | | | | | | | | 5,358 | |
Insurance fees | | | | | | | 2,120 | | | | | | | | | | | | 2,119 | |
Legal fees | | | | | | | 5,125 | | | | | | | | | | | | 1,361 | |
Registrations and filing fees | | | | | | | 18,462 | | | | | | | | | | | | 21,940 | |
Shareholder reports | | | | | | | 14,831 | | | | | | | | | | | | 2,291 | |
Transfer agent fees–Class A | | | | | | | 16,400 | | | | | | | | | | | | — | |
Transfer agent fees–Class I | | | | | | | 100,583 | | | | | | | | | | | | 14,722 | |
Transfer agent fees–Class R6 | | | | | | | — | | | | | | | | | | | | 2,291 | |
Trustees’ fees and expenses | | | | | | | 5,247 | | | | | | | | | | | | 1,765 | |
Tax expense | | | | | | | 1,875 | | | | | | | | | | | | 1,875 | |
Other fees | | | | | | | 2,899 | | | | | | | | | | | | 2,848 | |
| | | | | | | | | | | | | | | | | | | | |
Total expenses before fee waiver/reimbursement | | | | | | | 854,580 | | | | | | | | | | | | 429,823 | |
Expenses waived/reimbursed by: | | | | | | | | | | | | | | | | | | | | |
Advisor | | | | | | | (94,222 | ) | | | | | | | | | | | (30,026 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net expenses | | | | | | | 760,358 | | | | | | | | | | | | 399,797 | |
| | | | | | | | | | | | | | | | | | | | |
Net Investment Income | | | | | | | 731,662 | | | | | | | | | | | | 402,011 | |
| | | | | | | | | | | | | | | | | | | | |
Realized/Unrealized Gains/(Losses): | | | | | | | | | | | | | | | | | | | | |
Net realized gains from investment transactions | | | | | | | 7,199,751 | | | | | | | | | | | | 824,094 | |
Net change in unrealized depreciation on investments | | | | | | | (8,435,649 | ) | | | | | | | | | | | (1,886,524 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net realized/unrealized losses | | | | | | | (1,235,898 | ) | | | | | | | | | | | (1,062,430 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | | $ | (504,236 | ) | | | | | | | | | | $ | (660,419 | ) |
| | | | | | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
40
| | |
FINANCIAL STATEMENTS | | |
Statements of Changes in Net Assets |
| | | | | | | | | | | | | | | | |
| | RBC SMID Cap Growth Fund | |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | | | | | For the Year Ended September 30, 2017 | |
From Investment Activities | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | |
Net investment loss | | | | $ | (104,354 | ) | | | | | | | | $ | (232,555 | ) |
Net realized gains from investments | | | | | 2,518,846 | | | | | | | | | | 15,178,661 | |
Net change in unrealized appreciation/(depreciation) on investments | | | | | 2,603,794 | | | | | | | | | | (5,923,148 | ) |
| | | | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | 5,018,286 | | | | | | | | | | 9,022,958 | |
| | | | | | | | | | | | | | | | |
Distributions to Class A Shareholders: | | | | | | | | | | | | | | | | |
From net realized gains from investment transactions | | | | | (2,410,341 | ) | | | | | | | | | (886,609 | ) |
Distributions to Class I Shareholders: | | | | | | | | | | | | | | | | |
From net realized gains from investment transactions | | | | | (12,451,210 | ) | | | | | | | | | (4,241,940 | ) |
Distributions to Class R6 Shareholders: | | | | | | | | | | | | | | | | |
From net realized gains from investment transactions | | | | | (2,177 | ) | | | | | | | | | (682 | ) |
| | | | | | | | | | | | | | | | |
Change in net assets resulting from shareholder distributions | | | | | (14,863,728 | ) | | | | | | | | | (5,129,231 | ) |
| | | | | | | | | | | | | | | | |
Capital Transactions: | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | | | | 7,152,379 | | | | | | | | | | 11,863,799 | |
Distributions reinvested | | | | | 14,797,134 | | | | | | | | | | 5,053,916 | |
Cost of shares redeemed | | | | | (7,393,363 | ) | | | | | | | | | (41,909,394 | ) |
| | | | | | | | | | | | | | | | |
Change in net assets resulting from capital transactions | | | | | 14,556,150 | | | | | | | | | | (24,991,679 | ) |
| | | | | | | | | | | | | | | | |
Net increase/(decrease) in net assets | | | | | 4,710,708 | | | | | | | | | | (21,097,952 | ) |
Net Assets: | | | | | | | | | | | | | | | | |
Beginning of period | | | | | 77,074,478 | | | | | | | | | | 98,172,430 | |
| | | | | | | | | | | | | | | | |
End of period | | | | $ | 81,785,186 | | | | | | | | | $ | 77,074,478 | |
| | | | | | | | | | | | | | | | |
Distributions in excess of net investment income | | | | $ | (328,332 | ) | | | | | | | | $ | (223,978 | ) |
| | | | | | | | | | | | | | | | |
Share Transactions: | | | | | | | | | | | | | | | | |
Issued | | | | | 493,475 | | | | | | | | | | 782,046 | |
Reinvested | | | | | 1,095,312 | | | | | | | | | | 356,322 | |
Redeemed | | | | | (511,751 | ) | | | | | | | | | (2,841,098 | ) |
| | | | | | | | | | | | | | | | |
Change in shares resulting from capital transactions | | | | | 1,077,036 | | | | | | | | | | (1,702,730 | ) |
| | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
41
| | |
FINANCIAL STATEMENTS | | |
Statements of Changes in Net Assets |
| | | | | | | | | | | | | | | | | | | | |
| | RBC Enterprise Fund | |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | | | | | For the Year Ended September 30, 2017 | |
From Investment Activities | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment loss | | | | | | $ | (93,318 | ) | | | | | | | | | | $ | (109,059 | ) |
Net realized gains from investments | | | | | | | 6,903,058 | | | | | | | | | | | | 14,325,160 | |
Net change in unrealized appreciation/(depreciation) on investments | | | | | | | (7,869,730 | ) | | | | | | | | | | | 7,787,110 | |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | | | (1,059,990 | ) | | | | | | | | | | | 22,003,211 | |
| | | | | | | | | | | | | | | | | | | | |
Distributions to Class A Shareholders: | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | — | | | | | | | | | | | | (384 | ) |
From net realized gains from investment transactions | | | | | | | (265,777 | ) | | | | | | | | | | | (13,842 | ) |
Distributions to Class I Shareholders: | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | — | | | | | | | | | | | | (257,301 | ) |
From net realized gains from investment transactions | | | | | | | (15,947,218 | ) | | | | | | | | | | | (962,243 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from shareholder distributions | | | | | | | (16,212,995 | ) | | | | | | | | | | | (1,233,770 | ) |
| | | | | | | | | | | | | | | | | | | | |
Capital Transactions: | | | | | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | | | | | | 217,103 | | | | | | | | | | | | 600,110 | |
Distributions reinvested | | | | | | | 15,290,528 | | | | | | | | | | | | 1,163,116 | |
Cost of shares redeemed | | | | | | | (5,617,311 | ) | | | | | | | | | | | (36,094,124 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from capital transactions | | | | | | | 9,890,320 | | | | | | | | | | | | (34,330,898 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net decrease in net assets | | | | | | | (7,382,665 | ) | | | | | | | | | | | (13,561,457 | ) |
Net Assets: | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | | | | | 90,824,591 | | | | | | | | | | | | 104,386,048 | |
| | | | | | | | | | | | | | | | | | | | |
End of period | | | | | | $ | 83,441,926 | | | | | | | | | | | $ | 90,824,591 | |
| | | | | | | | | | | | | | | | | | | | |
Distributions in excess of net investment income | | | | | | $ | (93,318 | ) | | | | | | | | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | |
Share Transactions: | | | | | | | | | | | | | | | | | | | | |
Issued | | | | | | | 8,852 | | | | | | | | | | | | 24,781 | |
Reinvested | | | | | | | 660,634 | | | | | | | | | | | | 47,683 | |
Redeemed | | | | | | | (231,969 | ) | | | | | | | | | | | (1,505,995 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in shares resulting from capital transactions | | | | | | | 437,517 | | | | | | | | | | | | (1,433,531 | ) |
| | | | | | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
42
| | |
FINANCIAL STATEMENTS | | |
Statements of Changes in Net Assets |
| | | | | | | | | | | | | | | | | | | | |
| | RBC Small Cap Core Fund | |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | | | | | For the Year Ended September 30, 2017 | |
From Investment Activities | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | | | $ | 235,546 | | | | | | | | | | | $ | 232,417 | |
Net realized gains from investments | | | | | | | 10,185,983 | | | | | | | | | | | | 9,694,098 | |
Net change in unrealized appreciation/(depreciation) on investments | | | | | | | (4,632,153 | ) | | | | | | | | | | | 29,532,276 | |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | | | 5,789,376 | | | | | | | | | | | | 39,458,791 | |
| | | | | | | | | | | | | | | | | | | | |
Distributions to Class A Shareholders: | | | | | | | | | | | | | | | | | | | | |
From net realized gains from investment transactions | | | | | | | (396,907 | ) | | | | | | | | | | | — | |
Distributions to Class I Shareholders: | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | (78,417 | ) | | | | | | | | | | | (436,339 | ) |
From net realized gains from investment transactions | | | | | | | (7,508,043 | ) | | | | | | | | | | | — | |
Distributions to Class R6 Shareholders: | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | — | | | | | | | | | | | | (9 | ) |
From net realized gains from investment transactions | | | | | | | (31,899 | ) | | | | | | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from shareholder distributions | | | | | | | (8,015,266 | ) | | | | | | | | | | | (436,348 | ) |
| | | | | | | | | | | | | | | | | | | | |
Capital Transactions: | | | | | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | | | | | | 18,806,682 | | | | | | | | | | | | 67,499,706 | |
Distributions reinvested | | | | | | | 7,804,446 | | | | | | | | | | | | 428,287 | |
Cost of shares redeemed | | | | | | | (36,732,421 | ) | | | | | | | | | | | (74,573,714 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from capital transactions | | | | | | | (10,121,293 | ) | | | | | | | | | | | (6,645,721 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net increase/(decrease) in net assets | | | | | | | (12,347,183 | ) | | | | | | | | | | | 32,376,722 | |
Net Assets: | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | | | | | 290,049,600 | | | | | | | | | | | | 257,672,878 | |
| | | | | | | | | | | | | | | | | | | | |
End of period | | | | | | $ | 277,702,417 | | | | | | | | | | | $ | 290,049,600 | |
| | | | | | | | | | | | | | | | | | | | |
Distributions in excess of net investment income | | | | | | $ | (57,946 | ) | | | | | | | | | | $ | (215,075 | ) |
| | | | | | | | | | | | | | | | | | | | |
Share Transactions: | | | | | | | | | | | | | | | | | | | | |
Issued | | | | | | | 454,956 | | | | | | | | | | | | 1,807,571 | |
Reinvested | | | | | | | 187,778 | | | | | | | | | | | | 11,150 | |
Redeemed | | | | | | | (891,839 | ) | | | | | | | | | | | (2,035,486 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in shares resulting from capital transactions | | | | | | | (249,105 | ) | | | | | | | | | | | (216,765 | ) |
| | | | | | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
43
| | |
FINANCIAL STATEMENTS | | |
Statements of Changes in Net Assets |
| | | | | | | | | | | | | | | | | | | | |
| | RBC Microcap Value Fund | |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | | | | | For the Year Ended September 30, 2017 | |
From Investment Activities | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | | | $ | 731,662 | | | | | | | | | | | $ | 805,374 | |
Net realized gains from investments | | | | | | | 7,199,751 | | | | | | | | | | | | 12,155,490 | |
Net change in unrealized appreciation/(depreciation) on investments | | | | | | | (8,435,649 | ) | | | | | | | | | | | 13,987,353 | |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | | | (504,236 | ) | | | | | | | | | | | 26,948,217 | |
| | | | | | | | | | | | | | | | | | | | |
Distributions to Class A Shareholders: | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | (16,947 | ) | | | | | | | | | | | (20,416 | ) |
From net realized gains from investment transactions | | | | | | | (649,230 | ) | | | | | | | | | | | (463,470 | ) |
Distributions to Class I Shareholders: | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | (699,082 | ) | | | | | | | | | | | (715,339 | ) |
From net realized gains from investment transactions | | | | | | | (12,698,668 | ) | | | | | | | | | | | (7,603,069 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from shareholder distributions | | | | | | | (14,063,927 | ) | | | | | | | | | | | (8,802,294 | ) |
| | | | | | | | | | | | | | | | | | | | |
Capital Transactions: | | | | | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | | | | | | 1,812,596 | | | | | | | | | | | | 6,964,015 | |
Distributions reinvested | | | | | | | 12,772,313 | | | | | | | | | | | | 7,402,253 | |
Cost of shares redeemed | | | | | | | (14,484,778 | ) | | | | | | | | | | | (36,050,202 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from capital transactions | | | | | | | 100,131 | | | | | | | | | | | | (21,683,934 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net decrease in net assets | | | | | | | (14,468,032 | ) | | | | | | | | | | | (3,538,011 | ) |
Net Assets: | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | | | | | 146,910,758 | | | | | | | | | | | | 150,448,769 | |
| | | | | | | | | | | | | | | | | | | | |
End of period | | | | | | $ | 132,442,726 | | | | | | | | | | | $ | 146,910,758 | |
| | | | | | | | | | | | | | | | | | | | |
Undistributed net investment income | | | | | | $ | 320,378 | | | | | | | | | | | $ | 304,745 | |
| | | | | | | | | | | | | | | | | | | | |
Share Transactions: | | | | | | | | | | | | | | | | | | | | |
Issued | | | | | | | 58,423 | | | | | | | | | | | | 226,957 | |
Reinvested | | | | | | | 421,529 | | | | | | | | | | | | 234,100 | |
Redeemed | | | | | | | (470,525 | ) | | | | | | | | | | | (1,174,718 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in shares resulting from capital transactions | | | | | | | 9,427 | | | | | | | | | | | | (713,661 | ) |
| | | | | | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
44
| | |
FINANCIAL STATEMENTS | | |
Statements of Changes in Net Assets |
| | | | | | | | | | | | | | | | | | | | |
| | RBC Small Cap Value Fund | |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | | | | | For the Year Ended September 30, 2017 | |
From Investment Activities | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | | | $ | 402,011 | | | | | | | | | | | $ | 213,823 | |
Net realized gains from investments | | | | | | | 824,094 | | | | | | | | | | | | 1,461,805 | |
Net change in unrealized appreciation/(depreciation) on investments | | | | | | | (1,886,524 | ) | | | | | | | | | | | 4,896,874 | |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from operations | | | | | | | (660,419 | ) | | | | | | | | | | | 6,572,502 | |
| | | | | | | | | | | | | | | | | | | | |
Distributions to Class I Shareholders: | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | (437,929 | ) | | | | | | | | | | | (42,304 | ) |
From net realized gains from investment transactions | | | | | | | (1,596,944 | ) | | | | | | | | | | | (171,674 | ) |
Distributions to Class R6 Shareholders: | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | (35,298 | ) | | | | | | | | | | | — | |
From net realized gains from investment transactions | | | | | | | (127,850 | ) | | | | | | | | | | | (178 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from shareholder distributions | | | | | | | (2,198,021 | ) | | | | | | | | | | | (214,156 | ) |
| | | | | | | | | | | | | | | | | | | | |
Capital Transactions: | | | | | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | | | | | | 23,774,821 | | | | | | | | | | | | 79,615,397 | |
Distributions reinvested | | | | | | | 2,042,187 | | | | | | | | | | | | 209,695 | |
Cost of shares redeemed | | | | | | | (7,488,157 | ) | | | | | | | | | | | (13,502,286 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in net assets resulting from capital transactions | | | | | | | 18,328,851 | | | | | | | | | | | | 66,322,806 | |
| | | | | | | | | | | | | | | | | | | | |
Net increase in net assets | | | | | | | 15,470,411 | | | | | | | | | | | | 72,681,152 | |
Net Assets: | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | | | | | 78,808,108 | | | | | | | | | | | | 6,126,956 | |
| | | | | | | | | | | | | | | | | | | | |
End of period | | | | | | $ | 94,278,519 | | | | | | | | | | | $ | 78,808,108 | |
| | | | | | | | | | | | | | | | | | | | |
Undistributed net investment income | | | | | | $ | 116,830 | | | | | | | | | | | $ | 188,046 | |
| | | | | | | | | | | | | | | | | | | | |
Share Transactions: | | | | | | | | | | | | | | | | | | | | |
Issued | | | | | | | 1,771,020 | | | | | | | | | | | | 6,382,305 | |
Reinvested | | | | | | | 149,980 | | | | | | | | | | | | 16,642 | |
Redeemed | | | | | | | (548,747 | ) | | | | | | | | | | | (1,075,997 | ) |
| | | | | | | | | | | | | | | | | | | | |
Change in shares resulting from capital transactions | | | | | | | 1,372,253 | | | | | | | | | | | | 5,322,950 | |
| | | | | | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
45
RBC SMID Cap Growth Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Activities | | | Distributions | | | | |
| | Net Asset Value, Beginning of Period | | | Net Investment Loss(a) | | | Net Realized and Unrealized Gains (Losses) on Investments | | | Redemption Fees | | | Total from Investment Activities | | | Net Investment Income | | | Net Realized Gains | | | Total Distributions | | | Net Asset Value, End of Period | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | $ | 14.72 | | | | (0.03) | | | | 0.90 | | | | —(b) | | | | 0.87 | | | | — | | | | (3.11) | | | | (3.11) | | | $ | 12.48 | |
Year Ended 9/30/17 | | | 13.92 | | | | (0.07) | | | | 1.91 | | | | —(b) | | | | 1.84 | | | | — | | | | (1.04) | | | | (1.04) | | | | 14.72 | |
Year Ended 9/30/16 | | | 13.57 | | | | (0.06) | | | | 1.95 | | | | —(b) | | | | 1.89 | | | | — | | | | (1.54) | | | | (1.54) | | | | 13.92 | |
Year Ended 9/30/15 | | | 15.60 | | | | (0.08) | | | | 0.53 | | | | —(b) | | | | 0.45 | | | | — | | | | (2.48) | | | | (2.48) | | | | 13.57 | |
Year Ended 9/30/14 | | | 16.10 | | | | (0.11) | | | | 0.77 | | | | —(b) | | | | 0.66 | | | | — | | | | (1.16) | | | | (1.16) | | | | 15.60 | |
Year Ended 9/30/13 | | | 14.61 | | | | (0.09) | | | | 3.35 | | | | —(b) | | | | 3.26 | | | | — | | | | (1.77) | | | | (1.77) | | | | 16.10 | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | $ | 16.26 | | | | (0.02) | | | | 1.01 | | | | —(b) | | | | 0.99 | | | | — | | | | (3.11) | | | | (3.11) | | | $ | 14.14 | |
Year Ended 9/30/17 | | | 15.24 | | | | (0.04) | | | | 2.10 | | | | —(b) | | | | 2.06 | | | | — | | | | (1.04) | | | | (1.04) | | | | 16.26 | |
Year Ended 9/30/16 | | | 14.68 | | | | (0.03) | | | | 2.13 | | | | —(b) | | | | 2.10 | | | | — | | | | (1.54) | | | | (1.54) | | | | 15.24 | |
Year Ended 9/30/15 | | | 16.65 | | | | (0.05) | | | | 0.56 | | | | —(b) | | | | 0.51 | | | | — | | | | (2.48) | | | | (2.48) | | | | 14.68 | |
Year Ended 9/30/14 | | | 17.07 | | | | (0.08) | | | | 0.82 | | | | —(b) | | | | 0.74 | | | | — | | | | (1.16) | | | | (1.16) | | | | 16.65 | |
Year Ended 9/30/13 | | | 15.34 | | | | (0.06) | | | | 3.56 | | | | —(b) | | | | 3.50 | | | | — | | | | (1.77) | | | | (1.77) | | | | 17.07 | |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | $ | 16.27 | | | | (0.01) | | | | 1.01 | | | | —(b) | | | | 1.00 | | | | — | | | | (3.11) | | | | (3.11) | | | $ | 14.16 | |
Period Ended 9/30/17(c) | | | 15.30 | | | | (0.03) | | | | 2.04 | | | | —(b) | | | | 2.01 | | | | — | | | | (1.04) | | | | (1.04) | | | | 16.27 | |
(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. |
(c) | For the period from November 21, 2016 (commencement of operations) to September 30, 2017. |
46
RBC SMID Cap Growth Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Ratios/Supplemental Data | |
| | Total Return(a)(b) | | | 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 | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | 6.39%(c) | | | $ | 11,626 | | | | 1.07%(d) | | | | (0.47)%(d) | | | | 1.42%(d) | | | | 9% | |
Year Ended 9/30/17 | | | 14.18% | | | | 11,600 | | | | 1.10% | | | | (0.50)% | | | | 1.50% | | | | 18% | |
Year Ended 9/30/16 | | | 14.99% | | | | 12,106 | | | | 1.10% | | | | (0.43)% | | | | 1.46% | | | | 14% | |
Year Ended 9/30/15 | | | 2.20% | | | | 12,070 | | | | 1.10% | | | | (0.56)% | | | | 1.45% | | | | 18% | |
Year Ended 9/30/14 | | | 3.90% | | | | 12,503 | | | | 1.14%(e) | | | | (0.70)% | | | | 1.47% | | | | 17% | |
Year Ended 9/30/13 | | | 25.08% | | | | 13,620 | | | | 1.35% | | | | (0.65)% | | | | 1.46% | | | | 16% | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | 6.54%(c) | | | $ | 70,147 | | | | 0.82%(d) | | | | (0.22)%(d) | | | | 0.98%(d) | | | | 9% | |
Year Ended 9/30/17 | | | 14.40% | | | | 65,463 | | | | 0.85% | | | | (0.26)% | | | | 1.07% | | | | 18% | |
Year Ended 9/30/16 | | | 15.32% | | | | 86,067 | | | | 0.85% | | | | (0.18)% | | | | 1.05% | | | | 14% | |
Year Ended 9/30/15 | | | 2.44% | | | | 54,935 | | | | 0.85% | | | | (0.31)% | | | | 1.07% | | | | 18% | |
Year Ended 9/30/14 | | | 4.16% | | | | 56,329 | | | | 0.89%(e) | | | | (0.45)% | | | | 1.04% | | | | 17% | |
Year Ended 9/30/13 | | | 25.48% | | | | 61,546 | | | | 1.10% | | | | (0.40)% | | | | 1.20% | | | | 16% | |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited)(f) | | | 6.61%(c) | | | $ | 12 | | | | 0.77%(d) | | | | (0.18)%(d) | | | | 39.49%(d) | | | | 9% | |
Period Ended 9/30/17 | | | 14.03%(c) | | | | 11 | | | | 0.80%(d) | | | | (0.22)%(d) | | | | 50.53%(d) | | | | 18% | |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Excludes sales charge. |
(b) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
47
RBC SMID Cap Growth Fund
(Selected data for a share outstanding throughout the periods indicated)
(e) | Beginning November 27, 2013, the net operating expenses were contractually limited to 1.10% and 0.85% of average daily net assets for Class A and Class I respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended September 30, 2014. |
(f) | For the period from November 21, 2016 (commencement of operations) to September 30, 2017. |
See Notes to the Financial Statements.
48
RBC Enterprise Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Activities | | | Distributions | | | | |
| | Net Asset Value, Beginning of Period | | | Net Investment Income/ (Loss)(a) | | | Net Realized and Unrealized Gains (Losses) on Investments | | | Redemption Fees | | | Total from Investment Activities | | | Net Investment Income | | | Net Realized Gains | | | Total Distributions | | | Net Asset Value, End of Period | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | $ | 26.86 | | | | (0.06) | | | | (0.17) | | | | —(b) | | | | (0.23) | | | | — | | | | (5.05) | | | | (5.05) | | | $ | 21.58 | |
Year Ended 9/30/17 | | | 21.49 | | | | (0.09) | | | | 5.68 | | | | —(b) | | | | 5.59 | | | | (0.01) | | | | (0.21) | | | | (0.22) | | | | 26.86 | |
Year Ended 9/30/16 | | | 20.16 | | | | (0.07) | | | | 2.59 | | | | —(b) | | | | 2.52 | | | | — | | | | (1.19) | | | | (1.19) | | | | 21.49 | |
Year Ended 9/30/15 | | | 25.16 | | | | (0.07) | | | | (1.72) | | | | —(b) | | | | (1.79) | | | | — | | | | (3.21) | | | | (3.21) | | | | 20.16 | |
Year Ended 9/30/14 | | | 26.48 | | | | (0.12) | | | | (0.52) | | | | —(b) | | | | (0.64) | | | | — | | | | (0.68) | | | | (0.68) | | | | 25.16 | |
Year Ended 9/30/13 | | | 19.45 | | | | 0.06 | | | | 6.99 | | | | —(b) | | | | 7.05 | | | | (0.02) | | | | — | | | | (0.02) | | | | 26.48 | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | $ | 27.74 | | | | (0.03) | | | | (0.18) | | | | —(b) | | | | (0.21) | | | | — | | | | (5.05) | | | | (5.05) | | | $ | 22.48 | |
Year Ended 9/30/17 | | | 22.17 | | | | (0.03) | | | | 5.87 | | | | —(b) | | | | 5.84 | | | | (0.06) | | | | (0.21) | | | | (0.27) | | | | 27.74 | |
Year Ended 9/30/16 | | | 20.77 | | | | (0.02) | | | | 2.66 | | | | —(b) | | | | 2.64 | | | | (0.05) | | | | (1.19) | | | | (1.24) | | | | 22.17 | |
Year Ended 9/30/15 | | | 25.77 | | | | (0.02) | | | | (1.77) | | | | —(b) | | | | (1.79) | | | | — | | | | (3.21) | | | | (3.21) | | | | 20.77 | |
Year Ended 9/30/14 | | | 27.05 | | | | (0.06) | | | | (0.53) | | | | —(b) | | | | (0.59) | | | | (0.01) | | | | (0.68) | | | | (0.69) | | | | 25.77 | |
Year Ended 9/30/13 | | | 19.85 | | | | 0.10 | | | | 7.16 | | | | —(b) | | | | 7.26 | | | | (0.06) | | | | — | | | | (0.06) | | | | 27.05 | |
(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. |
49
RBC Enterprise Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Ratios/Supplemental Data | |
| | Total Return(a)(b) | | | | | | 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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | (1.44)%(c) | | | | | | | $ | 1,036 | | | | 1.33%(d) | | | | (0.46)%(d) | | | | 1.86%(d) | | | | 6% | |
Year Ended 9/30/17 | | | 26.15% | | | | | | | | 1,445 | | | | 1.33% | | | | (0.39)% | | | | 1.96% | | | | 26% | |
Year Ended 9/30/16 | | | 13.31% | | | | | | | | 1,303 | | | | 1.33% | | | | (0.35)% | | | | 2.00% | | | | 11% | |
Year Ended 9/30/15 | | | (8.73)% | | | | | | | | 1,410 | | | | 1.33% | | | | (0.30)% | | | | 1.85% | | | | 16% | |
Year Ended 9/30/14 | | | (2.62)% | | | | | | | | 2,708 | | | | 1.33% | | | | (0.45)% | | | | 1.75% | | | | 19% | |
Year Ended 9/30/13 | | | 36.31% | | | | | | | | 3,025 | | | | 1.33% | | | | 0.25% | | | | 1.54% | | | | 16% | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | (1.31)%(c) | | | | | | | $ | 82,406 | | | | 1.08%(d) | | | | (0.21)%(d) | | | | 1.23%(d) | | | | 6% | |
Year Ended 9/30/17 | | | 26.51% | | | | | | | | 89,379 | | | | 1.08% | | | | (0.11)% | | | | 1.28% | | | | 26% | |
Year Ended 9/30/16 | | | 13.56% | | | | | | | | 103,083 | | | | 1.08% | | | | (0.09)% | | | | 1.25% | | | | 11% | |
Year Ended 9/30/15 | | | (8.50)% | | | | | | | | 104,237 | | | | 1.08% | | | | (0.09)% | | | | 1.21% | | | | 16% | |
Year Ended 9/30/14 | | | (2.36)% | | | | | | | | 124,229 | | | | 1.08% | | | | (0.20)% | | | | 1.20% | | | | 19% | |
Year Ended 9/30/13 | | | 36.69% | | | | | | | | 138,882 | | | | 1.08% | | | | 0.44% | | | | 1.29% | | | | 16% | |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Excludes sales charge. |
(b) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
See Notes to the Financial Statements.
50
RBC Small Cap Core Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Activities | | | Distributions | | | | |
| | Net Asset Value, Beginning of Period | | | Net Investment Income/ (Loss)(a) | | | Net Realized and Unrealized Gains (Losses) on Investments | | | Redemption Fees | | | Total from Investment Activities | | | Net Investment Income | | | Net Realized Gains | | | Total Distributions | | | Net Asset Value, End of Period | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | $38.85 | | | | (0.01) | | | | 0.76 | | | | —(b) | | | | 0.75 | | | | — | | | | (1.15) | | | | (1.15) | | | | $38.45 | |
Year Ended 9/30/17 | | | 33.53 | | | | (0.04) | | | | 5.36 | | | | —(b) | | | | 5.32 | | | | — | | | | — | | | | — | | | | 38.85 | |
Year Ended 9/30/16 | | | 28.55 | | | | (0.07) | | | | 5.46 | | | | —(b) | | | | 5.39 | | | | — | | | | (0.41) | | | | (0.41) | | | | 33.53 | |
Year Ended 9/30/15 | | | 30.66 | | | | (0.04) | | | | (0.91) | | | | —(b) | | | | (0.95) | | | | — | | | | (1.16) | | | | (1.16) | | | | 28.55 | |
Year Ended 9/30/14 | | | 30.53 | | | | (0.09) | | | | 1.04 | | | | —(b) | | | | 0.95 | | | | — | | | �� | (0.82) | | | | (0.82) | | | | 30.66 | |
Year Ended 9/30/13 | | | 24.45 | | | | 0.09 | | | | 7.65 | | | | —(b) | | | | 7.74 | | | | (0.08) | | | | (1.58) | | | | (1.66) | | | | 30.53 | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | $40.42 | | | | 0.04 | | | | 0.78 | | | | —(b) | | | | 0.82 | | | | (0.01) | | | | (1.15) | | | | (1.16) | | | | $40.08 | |
Year Ended 9/30/17 | | | 34.85 | | | | 0.04 | | | | 5.59 | | | | —(b) | | | | 5.63 | | | | (0.06) | | | | — | | | | (0.06) | | | | 40.42 | |
Year Ended 9/30/16 | | | 29.61 | | | | —(b) | | | | 5.67 | | | | —(b) | | | | 5.67 | | | | (0.02) | | | | (0.41) | | | | (0.43) | | | | 34.85 | |
Year Ended 9/30/15 | | | 31.68 | | | | 0.04 | | | | (0.95) | | | | —(b) | | | | (0.91) | | | | — | | | | (1.16) | | | | (1.16) | | | | 29.61 | |
Year Ended 9/30/14 | | | 31.45 | | | | (0.01) | | | | 1.06 | | | | —(b) | | | | 1.05 | | | | — | | | | (0.82) | | | | (0.82) | | | | 31.68 | |
Year Ended 9/30/13(c) | | | 25.11 | | | | 0.12 | | | | 7.92 | | | | —(b) | | | | 8.04 | | | | (0.12) | | | | (1.58) | | | | (1.70) | | | | 31.45 | |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | $40.46 | | | | 0.04 | | | | 0.80 | | | | —(b) | | | | 0.84 | | | | — | | | | (1.15) | | | | (1.15) | | | | $40.15 | |
Period Ended 9/30/17(d) | | | 37.08 | | | | (0.11) | | | | 3.52 | | | | —(b) | | | | 3.41 | | | | (0.03) | | | | — | | | | (0.03) | | | | 40.46 | |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(b) | Less than $0.01 or $(0.01) per share. |
(c) | Effective November 27, 2012, Class S shares were redesignated as Class I shares. Performance information shown for Class I prior to that date reflects the performance of Class S, and all financial data shown for prior years is for Class S. |
(d) | For the period from November 21, 2016 (commencement of operations) to March 31, 2017. |
51
RBC Small Cap Core Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Ratios/Supplemental Data | |
| | Total Return(a)(b) | | | 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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | | | | | 1.81 | %(c) | | | | | | | | | | $ | 13,202 | | | | | | | | 1.15 | %(d) | | | | | | | | | | | (0.07 | )%(d) | | | | | | | | | | | 1.36 | %(d) | | | | | | | 11% | |
Year Ended 9/30/17 | | | | | | | 15.87 | % | | | | | | | | | | | 14,574 | | | | | | | | 1.15 | % | | | | | | | | | | | (0.11 | )% | | | | | | | | | | | 1.47 | % | | | | | | | 29% | |
Year Ended 9/30/16 | | | | | | | 19.07 | % | | | | | | | | | | | 12,960 | | | | | | | | 1.15 | % | | | | | | | | | | | (0.23 | )% | | | | | | | | | | | 1.47 | % | | | | | | | 20% | |
Year Ended 9/30/15 | | | | | | | (3.47 | )% | | | | | | | | | | | 7,303 | | | | | | | | 1.15 | % | | | | | | | | | | | (0.13 | )% | | | | | | | | | | | 1.34 | % | | | | | | | 36% | |
Year Ended 9/30/14 | | | | | | | 3.05 | % | | | | | | | | | | | 8,971 | | | | | | | | 1.15 | % | | | | | | | | | | | (0.30 | )% | | | | | | | | | | | 1.57 | % | | | | | | | 29% | |
Year Ended 9/30/13 | | | | | | | 33.57 | % | | | | | | | | | | | 9,186 | | | | | | | | 1.17 | %(e) | | | | | | | | | | | 0.34 | % | | | | | | | | | | | 1.48 | % | | | | | | | 26% | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | | | | | 1.92 | %(c) | | | | | | | | | | $ | 263,324 | | | | | | | | 0.90 | %(d) | | | | | | | | | | | 0.18 | %(d) | | | | | | | | | | | 1.06 | %(d) | | | | | | | 11% | |
Year Ended 9/30/17 | | | | | | | 16.18 | % | | | | | | | | | | | 274,434 | | | | | | | | 0.90 | % | | | | | | | | | | | 0.10 | % | | | | | | | | | | | 1.15 | % | | | | | | | 29% | |
Year Ended 9/30/16 | | | | | | | 19.35 | % | | | | | | | | | | | 244,713 | | | | | | | | 0.90 | % | | | | | | | | | | | (0.01 | )% | | | | | | | | | | | 1.13 | % | | | | | | | 20% | |
Year Ended 9/30/15 | | | | | | | (3.22 | )% | | | | | | | | | | | 226,237 | | | | | | | | 0.90 | % | | | | | | | | | | | 0.11 | % | | | | | | | | | | | 1.13 | % | | | | | | | 36% | |
Year Ended 9/30/14 | | | | | | | 3.29 | % | | | | | | | | | | | 209,104 | | | | | | | | 0.90 | % | | | | | | | | | | | (0.04 | )% | | | | | | | | | | | 1.13 | % | | | | | | | 29% | |
Year Ended 9/30/13(f) | | | | | | | 33.96 | % | | | | | | | | | | | 138,426 | | | | | | | | 0.90 | %(e) | | | | | | | | | | | 0.47 | % | | | | | | | | | | | 1.20 | % | | | | | | | 26% | |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | | | | | 1.97 | %(c) | | | | | | | | | | $ | 1,177 | | | | | | | | 0.87 | %(d) | | | | | | | | | | | 0.21 | %(d) | | | | | | | | | | | 1.34 | %(d) | | | | | | | 11% | |
Period Ended 9/30/17(g) | | | | | | | 9.21 | %(c) | | | | | | | | | | | 1,041 | | | | | | | | 0.87 | %(d) | | | | | | | | | | | (0.33 | )%(d) | | | | | | | | | | | 6.88 | %(d) | | | | | | | 29% | |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Excludes sales charge. |
(b) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
52
RBC Small Cap Core Fund
(Selected data for a share outstanding throughout the periods indicated)
(e) | Beginning November 27, 2012, the net operating expenses were contractually limited to 1.15% and 0.90% of average daily net assets for Class A and Class I respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended September 30, 2013. |
(f) | Effective November 27, 2012, Class S shares were redesignated as Class I shares. Performance information shown for Class I prior to that date reflects the performance of Class S, and all financial data shown for prior years is for Class S. |
(g) | For the period from November 21, 2016 (commencement of operations) to March 31, 2017. |
See Notes to the Financial Statements.
53
RBC Microcap Value Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Activities | | | Distributions | | | | |
| | Net Asset Value, Beginning of Period | | | Net Investment Income(a) | | | Net Realized and Unrealized Gains (Losses) on Investments | | | Redemption Fees | | | Total from Investment Activities | | | Net Investment Income | | | Net Realized Gains | | | Total Distributions | | | Net Asset Value, End of Period | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | $32.91 | | | | 0.12 | | | | (0.26) | | | | —(b) | | | | (0.14) | | | | (0.08) | | | | (3.05) | | | | (3.13) | | | | $29.64 | |
Year Ended 9/30/17 | | | 29.05 | | | | 0.09 | | | | 5.45 | | | | —(b) | | | | 5.54 | | | | (0.07) | | | | (1.61) | | | | (1.68) | | | | 32.91 | |
Year Ended 9/30/16 | | | 25.88 | | | | 0.04 | | | | 3.50 | | | | —(b) | | | | 3.54 | | | | (0.08) | | | | (0.29) | | | | (0.37) | | | | 29.05 | |
Year Ended 9/30/15 | | | 26.68 | | | | 0.06 | | | | (0.06) | | | | —(b) | | | | — | | | | (0.10) | | | | (0.70) | | | | (0.80) | | | | 25.88 | |
Year Ended 9/30/14 | | | 25.10 | | | | 0.09 | | | | 1.69 | | | | —(b) | | | | 1.78 | | | | (0.20) | | | | — | | | | (0.20) | | | | 26.68 | |
Year Ended 9/30/13 | | | 18.91 | | | | 0.15 | | | | 6.18 | | | | —(b) | | | | 6.33 | | | | (0.14) | | | | — | | | | (0.14) | | | | 25.10 | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | $32.97 | | | | 0.16 | | | | (0.25) | | | | —(b) | | | | (0.09) | | | | (0.17) | | | | (3.05) | | | | (3.22) | | | | $29.66 | |
Year Ended 9/30/17 | | | 29.10 | | | | 0.17 | | | | 5.46 | | | | —(b) | | | | 5.63 | | | | (0.15) | | | | (1.61) | | | | (1.76) | | | | 32.97 | |
Year Ended 9/30/16 | | | 25.92 | | | | 0.11 | | | | 3.51 | | | | —(b) | | | | 3.62 | | | | (0.15) | | | | (0.29) | | | | (0.44) | | | | 29.10 | |
Year Ended 9/30/15 | | | 26.73 | | | | 0.13 | | | | (0.07) | | | | —(b) | | | | 0.06 | | | | (0.17) | | | | (0.70) | | | | (0.87) | | | | 25.92 | |
Year Ended 9/30/14 | | | 25.13 | | | | 0.15 | | | | 1.71 | | | | —(b) | | | | 1.86 | | | | (0.26) | | | | — | | | | (0.26) | | | | 26.73 | |
Year Ended 9/30/13(c) | | | 18.93 | | | | 0.20 | | | | 6.18 | | | | —(b) | | | | 6.38 | | | | (0.18) | | | | — | | | | (0.18) | | | | 25.13 | |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(b) | Less than $0.01 or $(0.01) per share. |
(c) | Effective November 27, 2012, Class S shares were redesignated as Class I shares. Performance information shown for Class I prior to that date reflects the performance of Class S, and all financial data shown for prior years is for Class S. |
54
RBC Microcap Value Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Ratios/Supplemental Data | |
| | Total Return(a)(b) | | | 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 | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | (0.63)%(c) | | | | $ 6,314 | | | | 1.32%(d) | | | | 0.80%(d) | | | | 1.77%(d) | | | | 5% | |
Year Ended 9/30/17 | | | 19.32% | | | | 7,276 | | | | 1.32% | | | | 0.31% | | | | 1.75% | | | | 9% | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended 9/30/16 | | | 13.80% | | | | 9,136 | | | | 1.32% | | | | 0.15% | | | | 1.76% | | | | 11% | |
Year Ended 9/30/15 | | | (0.18)% | | | | 10,300 | | | | 1.32% | | | | 0.20% | | | | 1.69% | | | | 5% | |
Year Ended 9/30/14 | | | 7.09% | | | | 10,029 | | | | 1.32% | | | | 0.32% | | | | 1.69% | | | | 11% | |
Year Ended 9/30/13 | | | 33.66% | | | | 6,417 | | | | 1.32% | | | | 0.69% | | | | 1.52% | | | | 4% | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | (0.48)%(c) | | | | $126,128 | | | | 1.07%(d) | | | | 1.05%(d) | | | | 1.19%(d) | | | | 5% | |
Year Ended 9/30/17 | | | 19.62% | | | | 139,635 | | | | 1.07% | | | | 0.56% | | | | 1.25% | | | | 9% | |
Year Ended 9/30/16 | | | 14.10% | | | | 141,313 | | | | 1.07% | | | | 0.40% | | | | 1.24% | | | | 11% | |
Year Ended 9/30/15 | | | 0.04% | | | | 130,135 | | | | 1.07% | | | | 0.47% | | | | 1.22% | | | | 5% | |
Year Ended 9/30/14 | | | 7.39% | | | | 134,345 | | | | 1.07% | | | | 0.55% | | | | 1.23% | | | | 11% | |
Year Ended 9/30/13(e) | | | 33.96% | | | | 144,915 | | | | 1.07% | | | | 1.08% | | | | 1.26% | | | | 4% | |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Excludes sales charge. |
(b) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
(e) | Effective November 27, 2012, Class S shares were redesignated as Class I shares. Performance information shown for Class I prior to that date reflects the performance of Class S, and all financial data shown for prior years is for Class S. |
See Notes to the Financial Statements.
55
RBC Small Cap Value Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Activities | | | Distributions | | | | |
| | Net Asset Value, Beginning of Period | | | Net Investment Income(a) | | | Net Realized and Unrealized Gains (Losses) on Investments | | | Total from Investment Activities | | | Net Investment Income | | | Net Realized Gains | | | Total Distributions | | | Net Asset Value, End of Period | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | $13.43 | | | | 0.06 | | | | (0.10) | | | | (0.04) | | | | (0.08) | | | | (0.29) | | | | (0.37) | | | | $13.02 | |
Year Ended 9/30/17 | | | 11.33 | | | | 0.06 | | | | 2.31 | | | | 2.37 | | | | (0.05) | | | | (0.22) | | | | (0.27) | | | | 13.43 | |
Year Ended 9/30/16 | | | 9.73 | | | | 0.08 | | | | 1.76 | | | | 1.84 | | | | (0.16) | | | | (0.08) | | | | (0.24) | | | | 11.33 | |
Period Ended 9/30/15(b) | | | 10.00 | | | | 0.06 | | | | (0.30) | | | | (0.24) | | | | (0.03) | | | | — | | | | (0.03) | | | | 9.73 | |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | $13.51 | | | | 0.07 | | | | (0.11) | | | | (0.04) | | | | (0.08) | | | | (0.29) | | | | (0.37) | | | | $13.10 | |
Period Ended 9/30/17(c) | | | 12.26 | | | | 0.06 | | | | 1.41 | | | | 1.47 | | | | — | | | | (0.22) | | | | (0.22) | | | | 13.51 | |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(b) | For the period from December 3, 2014 (commencement of operations) to September 30, 2015. |
(c) | For the period from November 21, 2016 (commencement of operations) to March 31, 2017. |
56
RBC Small Cap Value Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Ratios/Supplemental Data | |
| | Total Return(a)(b) | | | 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 | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | (0.42)%(c) | | | | $88,346 | | | | 0.95%(d) | | | | 0.95%(d) | | | | 1.01%(d) | | | | 10% | |
Year Ended 9/30/17 | | | 21.10% | | | | 72,852 | | | | 1.00% | | | | 0.48% | | | | 1.19% | | | | 35% | |
Year Ended 9/30/16 | | | 19.26% | | | | 6,127 | | | | 1.00% | | | | 0.79% | | | | 2.71% | | | | 47% | |
Period Ended 9/30/15(e) | | | (2.42)%(c) | | | | 5,085 | | | | 1.00%(d) | | | | 0.67%(d) | | | | 3.50%(d) | | | | 41% | |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | | (0.41)%(c) | | | | $ 5,933 | | | | 0.90%(d) | | | | 0.99%(d) | | | | 1.05%(d) | | | | 10% | |
Period Ended 9/30/17(f) | | | 12.10%(c) | | | | 5,956 | | | | 0.95%(d) | | | | 0.56%(d) | | | | 1.31%(d) | | | | 35% | |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Excludes sales charge. |
(b) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
(e) | For the period from December 3, 2014 (commencement of operations) to September 30, 2015. |
(f) | For the period from November 21, 2016 (commencement of operations) to March 31, 2017. |
See Notes to the Financial Statements.
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|
NOTES TO FINANCIAL STATEMENTS |
March 31, 2018 (Unaudited)
1. Organization:
RBC Funds Trust (the “Trust”) is registered under the Investment Company Act of 1940 (as amended) as an open-end management investment company. The Trust was organized as a Delaware statutory trust on December 16, 2003 and currently consists of 18 portfolios. Overall responsibility for the management of the Trust is vested in its Board of Trustees (the “Board”). Predecessor funds to the Trust were reorganized as portfolios of the Trust effective April 16, 2004. This report includes the following five investment portfolios (each a “Fund” and collectively, the “Funds”):
- RBC SMID Cap Growth Fund (“SMID 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 Small Cap Value Fund (“Small Cap Value Fund”)
The SMID Cap Growth and Small Cap Core Funds offer three share classes: Class A, Class R6 and Class I shares. The Enterprise and Microcap Value Funds offer two share classes: Class A and Class I shares. The Small Cap Value Fund offers Class I and Class R6 shares. On November 27, 2012, Class C shares were converted to Class A shares for the SMID Cap Growth, Enterprise, Small Cap Core and Microcap Value Funds and Class S shares were converted to Class I shares for SMID Cap Growth and Enterprise Funds. For the Small Cap Core and Microcap Value Funds, which did not previously have Class I shares, the Class S shares were redesignated as Class I shares. Class A shares are offered with a 5.75% maximum front-end sales charge and a 1.00% contingent deferred sales charge (“CDSC”) for redemption within 12 months of a $1 million or greater purchase on which no front-end sales charge was paid. Class I and Class R6 shares (intended for investors meeting certain investment minimum thresholds) are not subject to either a front-end sales charge or a CDSC.
RBC Global Asset Management (U.S.) Inc. (”RBC GAM (US)“ or ”Advisor“ or ”Co-Administrator“) acts as the investment advisor for the Funds. The officers of the Trust (“Fund Management”) are also employees of RBC GAM (US).
2. Significant Accounting Policies
Each Fund is an investment company that follows accounting and reporting guidance under the Financial Accounting Standards Board. Summarized below are the significant accounting policies of the Funds. These policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). Fund Management follows these policies when preparing financial statements. Fund Management may also be required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The financial statements are as of the close of regular trading on the New York Stock Exchange (“NYSE”).
In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in the ASU shorten the amortization period for certain callable debt securities, held at a premium, to be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount; which continues to be amortized to maturity. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management is currently evaluating the impact, if any, of applying this provision.
Security Valuation:
The Board has adopted pricing and valuation procedures for determining the fair value of each Fund’s investments. Fair value of a security is considered to be the price that a fund might reasonably expect to receive upon its current sale in an orderly transaction between market participants.
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|
NOTES TO FINANCIAL STATEMENTS |
Equity securities are generally valued on the basis of prices furnished by third-party pricing services approved by the Board. Equity securities listed on one or more exchanges shall be valued at the last available quoted sale price on the primary trading exchange as of the regularly scheduled closing time of the exchange and are categorized as Level 1 in the fair value hierarchy. (See “Fair Value Measurements” below for additional information). An equity security not listed on an exchange but listed on NASDAQ shall be valued at the NASDAQ official closing price and is also categorized as Level 1. If there was no sale on the primary exchange on the day the net asset value is calculated or a NASDAQ official closing price is not available, the most recent bid quotation generally will be used and such securities will generally be categorized as Level 2. Investments in open-end investment companies (mutual funds) are valued at net asset value and are categorized as Level 1 in the fair value hierarchy. Fixed income securities, including to-be-announced (“TBA”) commitments and municipal bonds, are generally valued based on evaluated prices received from third-party pricing services or from broker-dealers who make markets in the securities and are generally categorized as Level 2 in the fair value hierarchy (see “Fair Value Measurements” below for additional information). The pricing services utilize both dealer-supplied valuations and electronic data processing techniques that take into account multiple appropriate factors such as institutional-size trading in similar groups of securities, market spreads, interest rates, and fundamental security analytical data including yield, quality, coupon rate, maturity and type of issue.
Foreign securities valued in non-U.S. dollars are valued in the foreign currency and then converted into the U.S. dollar equivalent using the foreign exchange rate in effect at the close of the NYSE on the day the security’s value is determined. The value of securities traded in markets outside the United States may be affected on a day that the NYSE is closed and an investor is not able to purchase, exchange or redeem shares of the Funds.
The Board has delegated to the Funds’ Pricing Committee (“Pricing Committee”) the responsibility for implementing the pricing and valuation procedures, including responsibility for determining the fair value of the Funds’ securities or other assets and liabilities. The Pricing Committee includes representatives of the Funds’ Advisor, and Co-Administrator, including personnel from accounting and operations, investment management, trading, risk management, compliance and legal. The Pricing Committee meets at least quarterly to review and approve Fund valuation matters, including a review of the Funds’ pricing activity and operations, fair value measurements, pricing vendors, policies and procedures, and related controls. At least a quorum of the Pricing Committee shall meet more frequently, as needed, to consider and approve time-sensitive fair valuation matters. The Pricing Committee reports to the Valuation, Portfolio Management and Performance Committee (“Valuation Committee”) of the Board. Members of the Pricing Committee meet with the Valuation Committee and the Board at each of their regularly scheduled meetings to discuss valuation matters and actions taken during the period.
The Board has adopted procedures to determine the fair value of a security when a price is not available from a pricing service or broker- dealer or Fund Management determines that a price provided by a pricing service or broker-dealer does not approximate fair value. Fair valuation may also be used when a significant valuation event affecting the value of a security or market sector is determined to have occurred between the time when a security’s market closes and the time the Fund’s net asset value is calculated. The fair value of the security will be determined in good faith by the Pricing Committee in accordance with procedures and methodologies adopted by the Board. General factors used in determining the fair value of securities include, but are not limited to, fundamental analytical data relating to the security, the issuer and the market, such as duration, prepayment and default rates; general level of interest rates and changes in interest rates; information from broker-dealers; trading in similar securities; any restrictions on disposition of the security; and an evaluation of the forces that influence the market in which the investments are traded. These securities are either categorized as Level 2 or 3 in the fair value hierarchy, depending on the relevant inputs used.
When the Funds utilize fair valuation methods that use significant unobservable inputs to determine a security’s value, such securities will be categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. While the Funds’ policy is intended
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|
NOTES TO FINANCIAL STATEMENTS |
to result in a calculation of a Fund’s net asset value that fairly reflects security values as of the time of pricing, the Funds cannot guarantee that values determined by the Board or persons acting at their direction would accurately reflect the price that the Funds could obtain for a security if they were to dispose of it as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Funds may differ from the value that would be realized if the securities were sold.
The Funds’ Pricing Committee employs various methods for calibrating the valuation approach related to securities categorized within Level 2 and Level 3 of the fair value hierarchy. These methods may include regular due diligence of the Funds’ pricing vendors, a regular review of key inputs and assumptions, transaction back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing and stale prices and large movements in market value, and reviews of any market related activities. Additionally, the pricing of all fair value holdings is subsequently reported to the Valuation Committee and Board.
Fair Value Measurements:
The Funds disclose the fair value of their investments in a hierarchy that categorizes investments based on the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows:
• Level 1 - Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access at the measurement date.
• Level 2 - Significant inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active. Observable inputs may include quoted prices for similar securities, interest rates, spreads, prepayment spreads, etc.
• Level 3 - Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those securities.
Inputs used in determining fair value of an investment may include, but are not limited to, price information, volatility statistics, credit and market data, and other factors, all of which may be either observable or unobservable. Inputs can vary among investments and will be impacted by the investment type and volume of activity for the particular security or similar securities in the market. Investments in the Level 3 category are generally supported by transactions and quoted prices from dealers participating in the market for those investments. Investments may be included in the Level 3 category due to a lack of market activity or transparency. Internal valuation models may also be used as a pricing source for Level 3 investments. Internal valuation models may rely on one or more unobservable inputs, such as estimated cash flows, financial statement analysis and discount rates.
The summary of inputs used to determine the fair value of the Funds’ investments as of March 31, 2018 is as follows:
| | | | | | | | | | | | | | | | |
Funds | | Level 1 Quoted Prices | | | Level 2 Significant Observable Inputs | | | Level 3 Significant Unobservable Inputs | | | Total | |
Assets: | | | | | | | | | | | | |
Investments in Securities | | | | | | | | | | | | | | | | |
SMID Cap Growth Fund | | | $ 81,582,713 | (a) | | | $ — | | | | $ — | | | | $ 81,582,713 | |
Enterprise Fund | | | 83,361,880 | (a) | | | — | | | | — | | | | 83,361,880 | |
Small Cap Core Fund | | | 275,508,322 | (a) | | | — | | | | — | | | | 275,508,322 | |
Microcap Value Fund | | | 131,772,283 | (a) | | | 466,504 | (b) | | | 121,968 | | | | 132,360,755 | |
Small Cap Value Fund | | | 93,684,560 | (a) | | | — | | | | — | | | | 93,684,560 | |
(a) | The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Portfolio Investments. |
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|
NOTES TO FINANCIAL STATEMENTS |
(b) | Represents securities in the Consumer Discretionary ($466,404) and Financials ($100), sections of the Schedule of Portfolio Investments. |
The Funds did not have any liabilities that were measured at fair value on a recurring basis at March 31, 2018.
During the period ended March 31, 2018, the Funds, except Microcap Value Fund, recognized no transfers to/from Level 1 or Level 2. For Microcap Value Fund, transfers to Level 1 from Level 2 in the amount of $2,082,754 were due to the absence of an active trading market for the securities on March 31, 2018. The Funds’ policy is to recognize transfers between Level 1, Level 2 and Level 3 at the end of the period utilizing fair value at the beginning of the year.
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
| | | | |
| | Microcap Value Fund | |
| | Common Stocks– (Financials) | |
Balance as of 9/30/17(value) | | | $141,120 | |
Change in unrealized appreciation (depreciation)* | | | (19,152 | ) |
| | | | |
Balance as of 3/31/18(value) | | | $121,968 | |
| | | | |
* | Net change in unrealized appreciation/(depreciation) in Level 3 securities still held at March 31, 2018 |
The Fund’s assets assigned to the Level 3 category were valued using the valuation methodology and technique deemed most appropriate in the circumstances. The significant unobservable inputs used include assumptions regarding the particular security’s cash flow profile and potential defaults which may not be generally observable for either the security or for assets of a similar type. Inputs with respect to variable rate securities may also include assumptions regarding future interest rate changes. Significant changes in any of these assumptions may result in a lower or higher fair value measurement.
Financial Instruments:
Repurchase Agreements:
The Funds, except SMID Cap Growth Fund, may enter into repurchase agreements with counterparties whom the Advisor has deemed creditworthy, including primary dealers that report to the Federal Reserve Bank of New York or other large U.S. commercial banks or broker-dealers. These repurchase agreements are subject to the seller’s agreement to repurchase such securities at a mutually agreed upon date and price. The repurchase price generally equals the price paid by the Funds plus interest negotiated on the basis of current short-term rates.
Securities pledged by the dealers as collateral for repurchase agreements are held by a custodian bank until maturity of the repurchase agreement. The Funds have procedures to monitor additional collateral, if needed, to ensure that the daily market value of the collateral remains in excess of the market value of the repurchase agreement in the event of a default.
There were no repurchase agreements held during the period ended March 31, 2018.
Affiliated Investments:
The Funds invest in other Funds of the Trust (an “Affiliated Fund”). The Funds invest in U.S. Government Money Market Fund-RBC Institutional Class 1 as a cash sweep vehicle. The income earned by the Funds from the Affiliated Fund for the period is disclosed in the Statement of Operations. The table below details the transactions of the Funds in the Affiliated Fund.
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|
NOTES TO FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | | | | | | | |
| | Value September 30, 2017 | | | Purchases | | | Sales | | | Value March 31, 2018 | | | Dividends | |
Investments in U.S. Government | | | | | | | | | | | | | |
Money Market Fund | | | | | | | | | | | | | |
—RBC Institutional Class 1 | | | | | | | | | | | | | |
SMID Cap Growth Fund | | | $ 570,257 | | | | $ 6,725,459 | | | | $ 6,827,241 | | | | $ 468,475 | | | | $ 7,793 | |
Enterprise Fund | | | 251,438 | | | | 6,824,688 | | | | (6,858,251 | ) | | | 217,875 | | | | 5,338 | |
Small Cap Core Fund | | | 3,272,660 | | | | 23,857,267 | | | | (25,082,200 | ) | | | 2,047,727 | | | | 10,965 | |
Microcap Value Fund | | | 1,831,767 | | | | 6,958,635 | | | | (8,639,551 | ) | | | 150,851 | | | | 7,679 | |
Small Cap Value Fund | | | 3,579,686 | | | | 19,433,638 | | | | (21,375,108 | ) | | | 1,638,216 | | | | 16,770 | |
Investment Transactions and Income:
Investment transactions 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 advisory fees. Expenses incurred by the Trust, such as trustee or legal fees, are allocated among each of the Funds in the Trust either proportionately based upon each Fund’s relative net assets or using another reasonable basis such as equally across all Funds in the Trust, depending on the nature of the expense. Individual share classes within a Fund are charged expenses specific to that class, such as distribution fees and transfer agent fees. Within a Fund, expenses other than class specific expenses are allocated daily to each class based upon the proportion of relative net assets. Investment income and realized and unrealized gains or losses are allocated to each class of shares based on relative net assets.
Real Estate Investment Trusts:
The Funds may own shares of real estate investment trusts (”REITs“) which report information on the source of their distributions annually. Dividends paid by a REIT, other than capital gain distributions, will be taxable as ordinary income up to the amount of the REIT’s current and accumulated earnings and profits. Capital gain dividends paid by a REIT to a Fund will be treated as long term capital gains by the Fund and, in turn, may be distributed by the Fund to its shareholders as a capital gain distribution. Distributions received from a REIT in excess of its income are recorded as a return of capital and a reduction to the cost basis of the REIT.
Distributions to Shareholders:
Each Fund pays out any income that it receives, less expenses, in the form of dividends and capital gain distributions to its shareholders. Income dividends and capital gain distributions for each Fund are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions are calculated based on federal income tax regulations, which may differ from US GAAP. These “book/tax” differences may be either temporary or permanent in nature. To the extent these differences are determined, as of the end of the tax year, to be permanent (e.g., net operating loss, redesignation of distributions and basis adjustments on investments in passive foreign investment companies (PFICs) and partnerships.), they are reclassified within a Fund’s capital accounts based on their federal tax basis treatment.
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|
NOTES TO FINANCIAL STATEMENTS |
3. Agreements and Other Transactions with Affiliates:
The Trust has entered into an investment advisory agreement with RBC GAM (US) under which RBC GAM (US) manages each Funds’ assets and furnishes related office facilities, equipment, research and personnel. The agreement requires each Fund to pay RBC GAM (US) a monthly fee based upon average daily net assets. Under the terms of the agreement, RBC GAM (US) is entitled to receive fees based on a percentage of the average daily net assets of each of the Funds as follows:
| | | | | | |
| | Average Daily Net Assets of Fund | | Annual Rate | |
SMID Cap Growth Fund | | All Net Assets | | | 0.70% | |
Enterprise Fund | | Up to $30 Million | | | 1.00% | |
| | Over $30 Million | | | 0.90% | |
Small Cap Core Fund | | All Net Assets | | | 0.85% | |
Microcap Value Fund | | All Net Assets | | | 0.90% | |
Small Cap Value Fund | | All Net Assets | | | 0.80% | |
RBC GAM (US) has contractually agreed to waive fees and/or make payments in order to keep total operating expenses (excluding certain fees such as interest, taxes and acquired fund fees and expenses) of the Funds to the following levels pursuant to an expense limitation agreement.
| | | | | | | | | | | | |
| | Class A Annual Rate | | | Class I Annual Rate | | | Class R6 Annual Rate | |
SMID Cap Growth Fund | | | 1.07% | | | | 0.82% | | | | 0.77% | |
Enterprise Fund | | | 1.33% | | | | 1.08% | | | | N/A | |
Small Cap Core Fund | | | 1.15% | | | | 0.90% | | | | 0.87% | |
Microcap Value Fund | | | 1.32% | | | | 1.07% | | | | N/A | |
Small Cap Value Fund | | | N/A | | | | 0.95% | | | | 0.90% | |
This expense limitation agreement is in place until January 31, 2019, 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 (3 years for Small Cap Value Fund) from the date on which the fee was waived or expense was paid 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.
| | | | | | | | | | | | | | | | | | | | |
| | FYE 9/30/15 | | | FYE 9/30/16 | | | FYE 9/30/17 | | | FYE 9/30/18 | | | Total | |
SMID Cap Growth Fund | | | $ — | | | | $ — | | | | $ — | | | | $ 77,313 | | | | $ 77,313 | |
Enterprise Fund | | | — | | | | — | | | | — | | | | 68,338 | | | | 68,338 | |
Small Cap Core Fund | | | — | | | | — | | | | — | | | | 237,149 | | | | 237,149 | |
Microcap Value Fund | | | — | | | | — | | | | — | | | | 93,141 | | | | 93,141 | |
Small Cap Value Fund | | | 61,108 | | | | 93,970 | | | | 85,537 | | | | 27,761 | | | | 268,376 | |
There was no recoupment of expense reimbursements/waivers during the year. Amounts from years prior to those shown are no longer subject to recoupment.
RBC GAM (US) voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Funds pay to RBC GAM (US) indirectly through its investment in an affiliated money market fund. For the six months ended March 31, 2018, the amount waived was $1,030, $745, $1,498, $1,081 and $2,266 for the SMID Cap Growth Fund, Enterprise Fund, Small Cap Core Fund, Microcap Value Fund and Small Cap Value Fund, respectively, and is included in expenses waived/reimbursed by Advisor in the Statements of Operations.
RBC GAM (US) may also voluntarily waive and/or reimburse operating expenses of any Fund from time to time. Any such voluntary program may be changed or eliminated at any time without notice, and expenses waived under such program are not subject to recoupment.
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|
NOTES TO FINANCIAL STATEMENTS |
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 agreement, RBC GAM (US) received from each Fund except Small Cap Value Fund a fee, payable monthly, at the annual rate of 0.075% of each Fund’s average daily net assets. Effective October 2, 2017, RBC GAM (US) no longer receives a fee under the administrative services agreement. BNY Mellon receives a fee for its services payable by each Fund based in part on each Funds’ average net 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 Advisor or the Co-Administrator. Such Officers and Trustees receive no compensation from the Funds for serving in their respective roles.
The Trust currently pays each of the independent trustees (trustees of the Trust who are not directors, officers or employees of the Advisor, either Co-Administrator or Distributor) an annual retainer of $54,000. The Board Chairperson and Audit Committee Chairperson each receive an additional retainer of $2,500 annually, and all other trustees serving as Chair of a Board committee each receive an additional retainer of $1,000 annually. In addition, independent trustees receive a quarterly meeting fee of $6,500 for each in-person Board meeting attended, a meeting fee of $1,500 for each telephonic or special board meeting attended, a $1,500 fee for each Board committee meeting attended, and are reimbursed for all out-of-pocket expenses relating to attendance at such meetings. These amounts are included in the Statement of Operations in “Trustees’ fees”.
In conjunction with the launch of the Class R6 Shares, the Advisor invested seed capital to provide the share class its initial investment assets. The table below shows, as of March 31, 2018, the Fund’s net assets, the shares of the Fund held by the Advisor, and the percent of total net assets represented by the Advisor’s investment.
| | | | | | | | | | | | |
| | Net Assets | | | Shares held by Advisor | | | % of Fund Net Assets | |
SMID Cap Growth Fund | | $ | 81,785,186 | | | | 858 | | | | 0.0% | |
Small Cap Core Fund | | $ | 277,702,417 | | | | 277 | | | | 0.0% | |
Small Cap Value Fund | | $ | 94,278,519 | | | | 852 | | | | 0.0% | |
4. Fund Distribution:
Each of the Funds that offers Class A shares has adopted a Master Distribution 12b-1 Plan (the “Plan”) in which Quasar Distributors LLC (the “Distributor”) acts as the Funds’ distributor. The Plan permits each Fund to make payments for, or to reimburse the Distributor for, distribution-related costs and expenses of marketing shares of Class A covered under the Plan, and/or for providing shareholder services. The Plan does not apply to Class I and Class R6. The following chart shows the current Plan fee rate for Class A.
| | | | |
| | Class A | |
12b-1 Plan Fee | | | 0.25%* | |
* Under the 12b-1 plan, the maximum fee rate for Class A shares is 0.50%. Currently the Board has approved an annual limit of 0.25%.
Plan fees are based on average daily net assets of Class A. Up to 0.25% of each Plan fee may be designated as a service fee, as defined by the applicable rules of the Financial Industry Regulatory Authority. The Distributor, subject to applicable legal requirements, may waive the Plan fee voluntarily, in whole or in part. For the period ended March 31, 2018, there were no fees waived by the Distributor.
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|
NOTES TO FINANCIAL STATEMENTS |
For the period ended March 31, 2018, the Distributor received commissions of $3,109 front-end sales charges of Class A shares, of the Funds, of which $677 was paid to affiliated broker-dealers, and the remainder was either paid to unaffiliated broker-dealers or retained by the Distributor.
The Distributor did not receive any CDSC fees from Class A shares or Class C shares of the Funds during the period ended March 31, 2018.
5. Securities Transactions:
The cost of securities purchased and proceeds from securities sold (excluding securities maturing less than one year from acquisition) for the period ended March 31, 2018 were as follows:
| | | | | | | | |
| | Purchases | | | Sales | |
SMID Cap Growth Fund | | $ | 6,875,985 | | | $ | (7,652,987) | |
Enterprise Fund | | | 5,460,538 | | | | 11,762,056 | |
Small Cap Core Fund | | | 31,331,712 | | | | 50,075,885 | |
Microcap Value Fund | | | 6,583,935 | | | | 16,369,972 | |
Small Cap Value Fund | | | 26,190,475 | | | | 8,074,539 | |
Within the guidelines established by the Funds to always seek best execution when entering into portfolio transactions, the Funds participate in a “commission recapture” program under which brokerage transactions are directed to Cowen and Company, LLC and its correspondent brokers. A portion of the commissions paid 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 capital stock of the Funds are summarized on the following pages:
| | | | | | | | | | | | | | | | |
| | SMID Cap Growth Fund | | | Enterprise Fund | |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | | For the Year Ended September 30, 2017 | | | For the Six Months Ended March 31, 2018 (Unaudited) | | | For the Year Ended September 30, 2017 | |
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 67,409 | | | $ | 236,121 | | | $ | 27,398 | | | $ | 307,815 | |
Distributions reinvested | | | 2,409,085 | | | | 886,031 | | | | 238,798 | | | | 11,785 | |
Cost of shares redeemed | | | (781,490 | ) | | | (2,257,597 | ) | | | (393,361 | ) | | | (470,823 | ) |
| | | | | | | | | | | | | | | | |
Change in Class A | | $ | 1,695,004 | | | $ | (1,135,445 | ) | | $ | (127,165 | ) | | $ | (151,223 | ) |
| | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 7,084,970 | | | $ | 11,617,678 | | | $ | 189,705 | | | $ | 292,295 | |
Distributions reinvested | | | 12,385,872 | | | | 4,167,203 | | | | 15,051,730 | | | | 1,151,331 | |
Cost of shares redeemed | | | (6,611,873 | ) | | | (39,651,797 | ) | | | (5,223,950 | ) | | | (35,623,301 | ) |
| | | | | | | | | | | | | | | | |
Change in Class I | | $ | 12,858,969 | | | $ | (23,866,916 | ) | | $ | 10,017,485 | | | $ | (34,179,675 | ) |
| | | | | | | | | | | | | | | | |
Class R6 | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | — | | | $ | 10,000 | | | $ | — | | | $ | — | |
Distributions reinvested | | | 2,177 | | | | 682 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Change in Class R6 | | $ | 2,177 | | | $ | 10,682 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
Change in net assets resulting from capital transactions | | $ | 14,556,150 | | | $ | (24,991,679 | ) | | $ | 9,890,320 | | | $ | (34,330,898 | ) |
| | | | | | | | | | | | | | | | |
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|
NOTES TO FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | | | |
| | SMID Cap Growth Fund | | | Enterprise Fund | |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | | For the Year Ended September 30, 2017 | | | For the Six Months Ended March 31, 2018 (Unaudited) | | | For the Year Ended September 30, 2017 | |
SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Issued | | | 4,992 | | | | 17,167 | | | | 1,022 | | | | 12,781 | |
Reinvested | | | 197,628 | | | | 67,688 | | | | 10,732 | | | | 497 | |
Redeemed | | | (59,421 | ) | | | (166,222 | ) | | | (17,560 | ) | | | (20,135 | ) |
| | | | | | | | | | | | | | | | |
Change in Class A | | | 143,199 | | | | (81,367 | ) | | | (5,806 | ) | | | (6,857 | ) |
| | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | |
Issued | | | 488,483 | | | | 764,227 | | | | 7,830 | | | | 12,000 | |
Reinvested | | | 897,527 | | | | 288,587 | | | | 649,902 | | | | 47,186 | |
Redeemed | | | (452,330 | ) | | | (2,674,878 | ) | | | (214,409 | ) | | | (1,485,860 | ) |
| | | | | | | | | | | | | | | | |
Change in Class I | | | 933,680 | | | | (1,622,064 | ) | | | 443,323 | | | | (1,426,674 | ) |
| | | | | | | | | | | | | | | | |
Class R6 | | | | | | | | | | | | | | | | |
Issued | | | — | | | | 654 | | | | — | | | | — | |
Reinvested | | | 157 | | | | 47 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Change in Class R6 | | | 157 | | | | 701 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Change in shares resulting from capital transactions | | | 1,077,036 | | | | (1,702,730 | ) | | | 437,517 | | | | (1,433,531 | ) |
| | | | | | | | | | | | | | | | |
66
|
NOTES TO FINANCIAL STATEMENTS |
| | | | | | | | | | | | | | | | |
| | Small Cap Core Fund | | | Microcap Value Fund | |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | | For the Year Ended September 30, 2017 | | | For the Six Months Ended March 31, 2018 (Unaudited) | | | For the Year Ended September 30, 2017 | |
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 1,019,818 | | | $ | 6,717,442 | | | $ | 241,764 | | | $ | 743,595 | |
Distributions reinvested | | | 395,954 | | | | — | | | | 498,634 | | | | 383,624 | |
Cost of shares redeemed | | | (2,678,439 | ) | | | (7,176,886 | ) | | | (1,006,650 | ) | | | (4,020,277 | ) |
| | | | | | | | | | | | | | | | |
Change in Class A | | $ | (1,262,667 | ) | | $ | (459,444 | ) | | $ | (266,252 | ) | | $ | (2,893,058 | ) |
| | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 17,634,484 | | | $ | 59,818,830 | | | $ | 1,570,832 | | | $ | 6,220,420 | |
Distributions reinvested | | | 7,376,593 | | | | 428,278 | | | | 12,273,679 | | | | 7,018,629 | |
Cost of shares redeemed | | | (34,021,341 | ) | | | (67,392,286 | ) | | | (13,478,128 | ) | | | (32,029,925 | ) |
| | | | | | | | | | | | | | | | |
Change in Class I | | $ | (9,010,264 | ) | | $ | (7,145,178 | ) | | $ | 366,383 | | | $ | (18,790,876 | ) |
| | | | | | | | | | | | | | | | |
Class R6 | | | | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 152,380 | | | $ | 963,434 | | | $ | — | | | $ | — | |
Distributions reinvested | | | 31,899 | | | | 9 | | | | — | | | | — | |
Cost of shares redeemed | | | (32,641 | ) | | | (4,542 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Change in Class R6 | | $ | 151,638 | | | $ | 958,901 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
Change in net assets resulting from capital transactions | | $ | (10,121,293 | ) | | $ | (6,645,721 | ) | | $ | 100,131 | | | $ | (21,683,934 | ) |
| | | | | | | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | |
Issued | | | 25,713 | | | | 186,219 | | | | 7,994 | | | | 24,003 | |
Reinvested | | | 9,904 | | | | — | | | | 16,457 | | | | 12,132 | |
Redeemed | | | (67,407 | ) | | | (197,602 | ) | | | (32,552 | ) | | | (129,493 | ) |
| | | | | | | | | | | | | | | | |
Change in Class A | | | (31,790 | ) | | | (11,383 | ) | | | (8,101 | ) | | | (93,358 | ) |
| | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | |
Issued | | | 425,613 | | | | 1,595,510 | | | | 50,429 | | | | 202,954 | |
Reinvested | | | 177,109 | | | | 11,150 | | | | 405,072 | | | | 221,968 | |
Redeemed | | | (823,625 | ) | | | (1,837,772 | ) | | | (437,973 | ) | | | (1,045,225 | ) |
| | | | | | | | | | | | | | | | |
Change in Class I | | | (220,903 | ) | | | (231,112 | ) | | | 17,528 | | | | (620,303 | ) |
| | | | | | | | | | | | | | | | |
Class R6 | | | | | | | | | | | | | | | | |
Issued | | | 3,630 | | | | 25,842 | | | | — | | | | — | |
Reinvested | | | 765 | | | | — | | | | — | | | | — | |
Redeemed | | | (807 | ) | | | (112 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Change in Class R6 | | | 3,588 | | | | 25,730 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Change in shares resulting from capital transactions | | | (249,105 | ) | | | (216,765 | ) | | | 9,427 | �� | | | (713,661 | ) |
| | | | | | | | | | | | | | | | |
67
|
NOTES TO FINANCIAL STATEMENTS |
| | | | | | | | |
| | Small Cap Value Fund | |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | | For the Year Ended September 30, 2017 | |
CAPITAL TRANSACTIONS: | | | | | | | | |
Class I | | | | | | | | |
Proceeds from shares issued | | $ | 23,774,821 | | | $ | 74,101,905 | |
Distributions reinvested | | | 1,879,039 | | | | 209,517 | |
Cost of shares redeemed | | | (7,488,157 | ) | | | (13,502,300 | ) |
| | | | | | | | |
Change in Class I | | $ | 18,165,703 | | | $ | 60,809,122 | |
| | | | | | | | |
Class R6 | | | | | | | | |
Proceeds from shares issued | | $ | — | | | $ | 5,513,492 | |
Distributions reinvested | | | 163,148 | | | | 178 | |
Cost of shares redeemed | | | — | | | | 14 | |
| | | | | | | | |
Change in Class R6 | | $ | 163,148 | | | $ | 5,513,684 | |
| | | | | | | | |
Change in net assets resulting from capital transactions | | $ | 18,328,851 | | | $ | 66,322,806 | |
| | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | |
Class I | | | | | | | | |
Issued | | | 1,771,020 | | | | 5,941,364 | |
Reinvested | | | 138,063 | | | | 16,628 | |
Redeemed | | | (548,747 | ) | | | (1,075,997 | ) |
| | | | | | | | |
Change in Class I | | | 1,360,336 | | | | 4,881,995 | |
| | | | | | | | |
Class R6 | | | | | | | | |
Issued | | | — | | | | 440,941 | |
Reinvested | | | 11,917 | | | | 14 | |
| | | | | | | | |
Change in Class R6 | | | 11,917 | | | | 440,955 | |
| | | | | | | | |
Change in shares resulting from capital transactions | | | 1,372,253 | | | | 5,322,950 | |
| | | | | | | | |
7. Federal Income Taxes:
It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined under Subchapter M of the Internal Revenue Code, and to distribute substantially all of its net investment income and net realized capital gains. Therefore, no federal tax liability is recorded in the financial statements of each Fund.
Fund Management has analyzed the Funds’ tax positions taken or expected to be taken on federal income tax returns for all open tax years (the tax years ended September 30 of the years 2014, 2015, 2016 and 2017 for all funds except Small Cap Value Fund, which is for the period ended September 30, 2015 and the tax years ended 2016 and 2017), and has concluded that no provision for federal income tax is required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
68
|
NOTES TO FINANCIAL STATEMENTS |
As of March 31, 2018, the tax cost of securities and the breakdown of unrealized appreciation (depreciation) for each Fund was as follows:
| | | | | | | | | | | | | | | | |
| | Tax Cost Of Securities | | | Unrealized Appreciation | | | Unrealized Depreciation | | | Net Unrealized Appreciation/ (Depreciation) | |
SMID Cap Growth Fund | | | $ 61,871,682 | | | | $ 22,516,768 | | | | $ (2,805,737 | ) | | | $19,711,031 | |
Enterprise Fund | | | 45,361,775 | | | | 40,579,614 | | | | (2,579,509 | ) | | | 38,000,105 | |
Small Cap Core Fund | | | 182,424,264 | | | | 102,308,306 | | | | (9,224,248 | ) | | | 93,084,058 | |
Microcap Value Fund | | | 95,969,075 | | | | 59,509,886 | | | | (23,118,206 | ) | | | 36,391,680 | |
Small Cap Value Fund | | | 90,468,367 | | | | 7,605,801 | | | | (4,389,608 | ) | | | 3,216,193 | |
The difference between book basis and tax basis unrealized appreciation/depreciation is attributable primarily to the tax deferral of losses on wash sales, Passive Foreign Investment Companies (PFICs) and the timing of income recognition in partnerships.
The tax character of distributions during the year ended September 30, 2017 were as follows:
| | | | | | | | | | | | | | | | |
| | Distributions Paid From | |
| | Ordinary Income | | | Net Long Term Capital Gains | | | Total Taxable Distributions | | | Total Distributions Paid | |
SMID Cap Growth Fund | | $ | — | | | | $5,129,231 | | | | $5,129,231 | | | | $5,129,231 | |
Enterprise Fund | | | 257,685 | | | | 976,085 | | | | 1,233,770 | | | | 1,233,770 | |
Small Cap Core Fund | | | 422,552 | | | | 13,796 | | | | 436,348 | | | | 436,348 | |
Microcap Value Fund | | | 735,755 | | | | 8,066,539 | | | | 8,802,294 | | | | 8,802,294 | |
Small Cap Value Fund | | | 56,344 | | | | 157,812 | | | | 214,156 | | | | 214,156 | |
The tax basis of components of accumulated earnings/(losses) and tax character of distributions are determined at fiscal year end, and will be included in the Annual Report dated September 30, 2018.
As of September 30, 2017, the Funds did not have any capital loss carryforwards for federal income tax purposes.
Under current tax law, capital losses realized after October 31 and ordinary losses after December 31 of a Fund’s fiscal year may be deferred and treated as occurring on the first business day of the following fiscal year for tax purposes. The SMID Cap Growth Fund and Small Cap Core Fund had deferred qualified late-year ordinary losses of $223,978 and $215,075, respectively which will be treated as arising on the first business day of the fiscal year ending September 30, 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 Advisor. This redemption fee is not charged in cases where, for example, the redemption results from an automatic reinvestment or asset re-allocation not specifically directed by the shareholder. The Trust also reserves the right to reject any Fund purchase order made by persons deemed to be market timers. The Funds’ prospectus contains a full description of the Trust’s policies on market timing and/or excessive trading. The redemption fee is recorded as a credit to capital and is included in the capital transactions on the Statements of Changes in Net Assets.
69
|
NOTES TO FINANCIAL STATEMENTS |
During the six months ended March 31, 2018, the redemption fees collected by the Funds which are offset in the cost of shares redeemed on the Statements of Changes in Net Assets are as follows:
| | | | |
| | Redemption Fees | |
SMID Cap Growth Fund | | | $ 7 | |
Small Cap Core Fund | | | 506 | |
Microcap Value Fund | | | 791 | |
9. Soft Dollars:
Soft dollar arrangements and commission sharing arrangements (CSAs) are arrangements under which RBC GAM (US) directs client brokerage transactions to a broker-dealer and obtains other products and services, such as research, in addition to trade execution. 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 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. During the period ended March 31, 2018, the Funds used soft dollar and commission sharing arrangements. 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. Significant Risks
Shareholder concentration risk:
As of March 31, 2018, the Funds had omnibus accounts which owned more than 10% of a Fund’s outstanding shares as shown below:
| | | | | | | | |
| | # of Non-Affiliated Omnibus Accounts | | | % of Fund | |
SMID Cap Growth Fund | | | 2 | | | | 84.5% | |
Enterprise Fund | | | 2 | | | | 21.8% | |
Small Cap Core Fund | | | 3 | | | | 56.8% | |
Microcap Value Fund | | | 2 | | | | 45.4% | |
Small Cap Value Fund | | | 3 | | | | 96.6% | |
In addition, a shareholder owned 15.6% of the Small Cap Core Fund as of March 31, 2018. Significant transactions by these shareholders may impact the Funds’ performance.
Industry and sector focus risk:
At times the Funds may increase the relative emphasis of its investments in a particular industry or sector. The prices of securities of issuers in a particular industry or sector may be more susceptible to fluctuations due to changes in economic or business conditions, government regulations, availability of basic resources or supplies, or other events that affect that industry or sector more than securities of issuers in other industries and sectors. To the extent that the Fund increases the relative emphasis of its investments in a particular industry or sector, its shares’ values may fluctuate in response to events affecting that industry or sector.
11. Subsequent Events:
Fund Management has evaluated the impact of all subsequent events on the Funds and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.
70
|
SHARE CLASS INFORMATION (UNAUDITED) |
The RBC Equity Funds offer three share classes. These three share classes are the A, R6 and I classes.
Class A
Class A shares, offered by all Funds except Small Cap Value Fund, are available for purchase primarily through investment advisors, broker-dealers, banks and other financial services intermediaries. Class A shares of the Funds are currently subject to a maximum 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 I
Class I shares are available in all of the 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.
Class R6
Class R6 shares are available in SMID Cap Growth Fund, Small Cap Core Fund and Small Cap Value Fund. 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.
71
|
SUPPLEMENTAL INFORMATION (UNAUDITED) |
Shareholder Expense Examples
As a shareholder of the the RBC Funds, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the RBC Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2017 through March 31, 2018.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
| | | | | | | | | | | | | | | | | | |
| | | | Beginning Account Value 10/1/17 | | | Ending Account Value 3/31/18 | | | Expenses Paid During Period* 10/1/17–3/31/18 | | | Annualized Expense Ratio During Period 10/1/17–3/31/18 | |
SMID Cap Growth Fund | | | | | | | | | | | | | | | | | | |
| | Class A | | | $1,000.00 | | | | $1,063.90 | | | | $5.51 | | | | 1.07 | % |
| | Class I | | | 1,000.00 | | | | 1,065.40 | | | | 4.22 | | | | 0.82 | % |
| | Class R6 | | | 1,000.00 | | | | 1,066.10 | | | | 3.97 | | | | 0.77 | % |
Enterprise Fund | | | | | | | | | | | | | | | | | | |
| | Class A | | | 1,000.00 | | | | 985.60 | | | | 6.58 | | | | 1.33 | % |
| | Class I | | | 1,000.00 | | | | 986.90 | | | | 5.35 | | | | 1.08 | % |
Small Cap Core Fund | | | | | | | | | | | | | | | | | | |
| | Class A | | | 1,000.00 | | | | 1,018.10 | | | | 5.79 | | | | 1.15 | % |
| | Class I | | | 1,000.00 | | | | 1,019.20 | | | | 4.53 | | | | 0.90 | % |
| | Class R6 | | | 1,000.00 | | | | 1,019.70 | | | | 4.38 | | | | 0.87 | % |
Microcap Value Fund | | | | | | | | | | | | | | | | | | |
| | Class A | | | 1,000.00 | | | | 993.70 | | | | 6.56 | | | | 1.32 | % |
| | Class I | | | 1,000.00 | | | | 995.20 | | | | 5.32 | | | | 1.07 | % |
Small Cap Value Fund | | | | | | | | | | | | | | | | | | |
| | Class I | | | 1,000.00 | | | | 995.80 | | | | 4.73 | | | | 0.95 | % |
| | Class R6 | | | 1,000.00 | | | | 995.90 | | | | 4.48 | | | | 0.90 | % |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 182/365 (to reflect one half year period).
72
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SUPPLEMENTAL INFORMATION (UNAUDITED) |
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on each RBC Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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| | | | | Beginning Account Value 10/1/17 | | | Ending Account Value 3/31/18 | | | Expenses Paid During Period* 10/1/17-3/31/18 | | | Annualized Expense Ratio During Period 10/1/17-3/31/18 | |
SMID Cap Growth Fund | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | | | $1,000.00 | | | | $1,019.60 | | | | $5.39 | | | | 1.07 | % |
| | | Class I | | | | 1,000.00 | | | | 1,020.84 | | | | 4.13 | | | | 0.82 | % |
| | | Class R6 | | | | 1,000.00 | | | | 1,021.09 | | | | 3.88 | | | | 0.77 | % |
Enterprise Fund | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | | | 1,000.00 | | | | 1,018.30 | | | | 6.69 | | | | 1.33 | % |
| | | Class I | | | | 1,000.00 | | | | 1,019.55 | | | | 5.44 | | | | 1.08 | % |
Small Cap Core Fund | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | | | 1,000.00 | | | | 1,019.20 | | | | 5.79 | | | | 1.15 | % |
| | | Class I | | | | 1,000.00 | | | | 1,020.44 | | | | 4.53 | | | | 0.90 | % |
| | | Class R6 | | | | 1,000.00 | | | | 1,020.59 | | | | 4.38 | | | | 0.87 | % |
Microcap Value Fund | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | | | 1,000.00 | | | | 1,018.35 | | | | 6.64 | | | | 1.32 | % |
| | | Class I | | | | 1,000.00 | | | | 1,019.60 | | | | 5.39 | | | | 1.07 | % |
Small Cap Value Fund | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | | | 1,000.00 | | | | 1,020.19 | | | | 4.78 | | | | 0.95 | % |
| | | Class R6 | | | | 1,000.00 | | | | 1,020.44 | | | | 4.53 | | | | 0.90 | % |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 182/365 (to reflect one half year period).
73
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 March 31, 2018.
NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
RBC Global Asset Management (U.S.) Inc. serves as investment advisor for the RBC Funds. RBC Funds are distributed by Quasar Distributors LLC.
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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 SAR 03-18
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| | | | | | RBC Funds | | | |
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About your Semi Annual Report | | | | | | This semi-annual report (Unaudited) includes detailed information about your Fund including financial statements, performance, and a complete list of its 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 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 is 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 1-800-SEC-0330. | |
Table of Contents | | | | | | Money Market Portfolio Manager | | | 1 | |
| | | | | Performance Summary | | | 3 | |
| | | | | | Schedule of Portfolio Investments | | | 5 | |
| | | | | | Financial Statements | | | | |
| | | | | | - Statements of Assets and Liabilities | | | 14 | |
| | | | | | - Statements of Operations | | | 16 | |
| | | | | | - Statements of Changes in Net Assets | | | 17 | |
| | | | | | Financial Highlights | | | 18 | |
| | | | | | Notes to Financial Statements | | | 20 | |
| | | | | | Supplemental Information | | | 27 | |
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MONEY MARKET PORTFOLIO MANAGER | | | | | | |
RBC Global Asset Management (U.S.) Inc. (“RBC GAM (US)”), serves as the investment advisor to the Fund. RBC GAM (US) employs a team approach to the management of the U.S. Government Money Market 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. | | | | | | |
Brandon T. Swensen, CFA Managing Director, Co-Head, U.S. Fixed Income Brandon Swensen oversees RBC GAM (US)’s fixed income research, portfolio management and trading. In addition to shaping the firm’s overall fixed income philosophy and process, he is a portfolio manager for the Fund and several cash management and core solutions. Brandon joined RBC GAM (US) in 2000 and most recently was a portfolio manager on the mortgage and government team before being promoted to Co-Head. He also held research analyst positions covering asset-backed securities and credit and served as a financial analyst for the firm. Brandon earned a BS in finance from St. Cloud State University and an MBA in finance from the University of St. Thomas. He is a CFA charterholder and member of the CFA Society of Minnesota. | | | | | | ![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758st03.jpg)
Brandon T. Swensen, CFA |
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PERFORMANCE SUMMARY (UNAUDITED) | | | | | | | | | | | | | |
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The U.S. Government Money Market Fund was managed to preserve principal. This means that the share price of the 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. | | | | | | | | | | |
| Investment Objective | |
| | | | | SEC 7-Day Annualized Yield(1) | | | | | | | | |
| | Total Return for the Six Months Ended March 31, 2018 (Unaudited) | | | March 31, 2018 (Unaudited) | | | September 30, 2017 | | | | | | | | |
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RBC Institutional Class 1 | | | 0.55 | % | | | 1.52% | | | | 0.88% | | | | | | | | | | |
RBC Institutional Class 2 | | | 0.50 | % | | | 1.42% | | | | 0.78% | | | | | | | | | | |
RBC Investor Class | | | 0.15 | % | | | 0.70% | | | | 0.06% | | | | | | | | | | |
(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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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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| | | | | | | | | | | | | | PERFORMANCE SUMMARY (UNAUDITED) |
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| Asset Allocation | | | | | | | | | | | Money Market Maturity Schedule |
| | | | | | | | | | | | As a percentage of value of investments based on effective maturity as of March 31, 2018. |
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| | | | | | | | | | | | | U.S. Government Money Market Fund | | | |
| | | | | | | | | | | | Less than 8 days | | | 62.2% | | | |
| | | | | | | | | | | | 8 to 14 days | | | 3.0% | | | |
| | | | | | | | | | | | 15 to 30 days | | | 9.1% | | | |
| | | | | | | | | | | | 31 to 180 days | | | 20.2% | | | |
| | | | | | | | | | | | Over 180 days | | | 5.5% | | | |
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SCHEDULE OF PORTFOLIO INVESTMENTS |
U.S. Government Money Market Fund
March 31, 2018 (Unaudited)
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Principal Amount | | | | Value | |
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U.S. Government Agency Obligations — 45.22% | |
Fannie Mae — 2.53% | |
$41,025,000 | | 0.75%, 7/27/18 | | $ | 40,961,316 | |
9,903,000 | | 0.88%, 5/21/18 | | | 9,898,240 | |
2,156,000 | | 1.13%, 10/19/18 | | | 2,153,004 | |
20,000,000 | | 1.64%, 6/11/18(a) | | | 19,936,611 | |
20,000,000 | | 1.66%, 6/6/18(a) | | | 19,940,417 | |
3,000,000 | | 1.69%, 5/23/18(a) | | | 2,992,860 | |
50,846,000 | | 1.88%, 9/18/18 | | | 50,988,936 | |
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| | | | | 146,871,384 | |
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Federal Farm Credit Bank — 9.06% | |
5,750,000 | | 0.70%, 4/6/18 | | | 5,749,694 | |
1,000,000 | | 0.83%, 7/27/18 | | | 998,467 | |
4,835,000 | | 0.85%, 8/24/18 | | | 4,814,792 | |
4,000,000 | | 0.88%, 6/25/18 | | | 3,996,634 | |
8,000,000 | | 0.88%, 9/20/18 | | | 7,981,913 | |
2,000,000 | | 1.10%, 6/1/18 | | | 1,998,128 | |
2,805,000 | | 1.15%, 5/30/18 | | �� | 2,804,645 | |
67,200,000 | | 1.18%, 4/26/18(a) | | | 67,147,584 | |
400,000 | | 1.22%, 4/27/18(a) | | | 399,664 | |
1,650,000 | | 1.22%, 6/25/18 | | | 1,649,918 | |
20,000,000 | | 1.23%, 4/24/18(a) | | | 19,985,089 | |
4,050,000 | | 1.26%, 5/22/18(a) | | | 4,040,589 | |
700,000 | | 1.26%, 5/24/18(a) | | | 698,736 | |
11,000,000 | | 1.26%, 8/21/18(a) | | | 10,946,146 | |
1,680,000 | | (LIBOR USD 3-Month - 0.230%), 1.46%, 4/3/19(b) | | | 1,678,546 | |
25,000,000 | | (LIBOR USD 3-Month - 0.200%), 1.62%, 8/13/19(b) | | | 25,000,000 | |
50,000,000 | | (LIBOR USD 3-Month - 0.165%), 1.62%, 2/6/20(b) | | | 49,995,863 | |
50,000,000 | | 1.66%, 6/11/18(a) | | | 49,839,583 | |
500,000 | | (LIBOR USD 3-Month - 0.130%), 1.66%, 2/3/20(b) | | | 499,960 | |
10,000,000 | | 1.67%, 5/31/18(a) | | | 9,972,794 | |
250,000 | | (LIBOR USD 3-Month - 0.060%), 1.69%, 10/25/19(b) | | | 250,203 | |
50,000,000 | | (LIBOR USD 1-Month + 0.045%), 1.71%, 11/1/18(b) | | | 50,001,470 | |
25,000,000 | | (LIBOR USD 1-Month + 0.050%), 1.74%, 5/4/18(b) | | | 25,000,470 | |
6,180,000 | | (LIBOR USD 1-Month + 0.045%), 1.76%, 4/9/18(b) | | | 6,180,019 | |
25,000,000 | | (LIBOR USD 1-Month + 0.140%), 1.80%, 8/1/18(b) | | | 24,999,989 | |
25,000,000 | | (LIBOR USD 1-Month + 0.180%), 1.87%, 4/4/18(b) | | | 24,999,986 | |
49,600,000 | | (LIBOR USD 1-Month + 0.120%), 1.87%, 11/13/18(b) | | | 49,618,545 | |
5,460,000 | | (LIBOR USD 1-Month + 0.180%), 1.92%, 10/11/19(b) | | | 5,479,554 | |
200,000 | | (LIBOR USD 1-Month + 0.170%), 1.93%, 11/14/19(b) | | | 200,649 | |
1,000,000 | | 1.95%, 9/17/18 | | | 1,002,883 | |
40,000,000 | | (LIBOR USD 3-Month - 0.165%), 1.98%, 3/16/20(b) | | | 39,995,719 | |
4,000,000 | | (LIBOR USD 3-Month - 0.035%), 1.99%, 9/4/18(b) | | | 4,001,661 | |
1,235,000 | | (LIBOR USD 1-Month + 0.190%), 2.01%, 9/20/19(b) | | | 1,239,555 | |
1,970,000 | | (LIBOR USD 1-Month + 0.180%), 2.05%, 10/24/19(b) | | | 1,977,113 | |
20,000,000 | | (LIBOR USD 3-Month - 0.030%), 2.15%, 9/18/18(b) | | | 20,009,316 | |
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SCHEDULE OF PORTFOLIO INVESTMENTS |
U.S. Government Money Market Fund (cont.)
March 31, 2018 (Unaudited)
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Principal Amount | | | | Value | |
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$ 200,000 | | (LIBOR USD 3-Month - 0.010%), 2.26%, 9/23/19(b) | | $ | 200,390 | |
500,000 | | 4.25%, 4/16/18 | | | 500,565 | |
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| | | | | 525,856,832 | |
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Federal Home Loan Bank — 21.51% | |
12,500,000 | | 0.63%, 8/7/18 | | | 12,468,964 | |
46,295,000 | | 0.88%, 10/1/18 | | | 46,205,126 | |
750,000 | | 0.95%, 7/23/18 | | | 748,895 | |
2,000,000 | | 1.13%, 4/17/18 | | | 1,999,917 | |
200,000 | | 1.13%, 4/25/18 | | | 199,941 | |
14,865,000 | | 1.13%, 9/14/18 | | | 14,855,502 | |
4,350,000 | | 1.15%, 6/22/18 | | | 4,349,116 | |
13,910,000 | | 1.20%, 9/17/18 | | | 13,902,142 | |
35,670,000 | | 1.25%, 6/8/18 | | | 35,663,287 | |
100,000 | | 1.25%, 6/28/18 | | | 99,992 | |
50,000,000 | | 1.25%, 9/13/18 | | | 49,997,094 | |
15,000,000 | | 1.25%, 9/25/18 | | | 14,993,306 | |
1,200,000 | | 1.32%, 8/14/18(a) | | | 1,194,193 | |
200,000 | | 1.36%, 8/24/18(a) | | | 198,928 | |
125,000,000 | | 1.37%, 4/2/18(a) | | | 125,000,000 | |
12,805,000 | | (LIBOR USD 3-Month - 0.163%), 1.53%, 7/5/19(b) | | | 12,804,933 | |
100,000,000 | | (LIBOR USD 3-Month - 0.155%), 1.60%, 1/24/20(b) | | | 100,000,000 | |
50,000,000 | | (LIBOR USD 1-Month - 0.060%), 1.64%, 8/7/19(b) | | | 50,000,000 | |
85,000,000 | | (LIBOR USD 3-Month - 0.150%), 1.64%, 11/6/19(b) | | | 85,000,000 | |
75,000,000 | | 1.66%, 6/5/18(a) | | | 74,780,000 | |
1,900,000 | | 1.67%, 6/4/18(a) | | | 1,894,480 | |
75,000,000 | | (LIBOR USD 1-Month - 0.070%), 1.67%, 7/12/19(b) | | | 75,000,000 | |
85,000,000 | | (LIBOR USD 1-Month - 0.060%), 1.75%, 9/18/19(b) | | | 85,000,000 | |
87,400,000 | | (LIBOR USD 3-Month - 0.160%), 1.78%, 5/24/19(b) | | | 87,414,606 | |
100,000,000 | | (LIBOR USD 1-Month), 1.81%, 6/19/18(b) | | | 100,000,000 | |
50,000,000 | | (LIBOR USD 3-Month - 0.160%), 1.87%, 6/5/19(b) | | | 50,008,325 | |
8,105,000 | | (LIBOR USD 3-Month - 0.160%), 1.91%, 6/12/19(b) | | | 8,104,968 | |
100,000,000 | | (LIBOR USD 1-Month + 0.050%), 1.92%, 10/26/18(b) | | | 100,000,000 | |
50,000,000 | | (LIBOR USD 3-Month - 0.120%), 1.97%, 12/13/19(b) | | | 50,000,000 | |
500,000 | | (LIBOR USD 3-Month - 0.130%), 1.98%, 9/14/18(b) | | | 500,081 | |
29,310,000 | | 2.00%, 9/14/18 | | | 29,399,716 | |
16,000,000 | | 2.75%, 6/8/18 | | | 16,044,956 | |
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| | | | | 1,247,828,468 | |
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Freddie Mac — 2.46% | |
35,186,000 | | GMTN, 0.75%, 4/9/18 | | | 35,181,537 | |
2,150,000 | | MTN, 1.00%, 6/29/18 | | | 2,148,702 | |
1,000,000 | | 1.00%, 6/29/18 | | | 999,397 | |
10,355,000 | | 1.25%, 6/22/18 | | | 10,354,251 | |
7,965,000 | | MTN, 1.30%, 7/16/18 | | | 7,964,964 | |
2,000,000 | | MTN, 1.30%, 9/18/18 | | | 2,000,340 | |
22,910,000 | | (LIBOR USD 3-Month - 0.165%), MTN, 1.53%, 7/5/19(b) | | | 22,907,575 | |
35,907,000 | | 4.88%, 6/13/18 | | | 36,130,654 | |
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SCHEDULE OF PORTFOLIO INVESTMENTS |
U.S. Government Money Market Fund (cont.)
March 31, 2018 (Unaudited)
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Principal Amount | | | | Value | |
| |
$ 9,641,000 | | 5.00%, 6/29/18 | | $ | 9,726,680 | |
14,461,000 | | 5.00%, 8/1/18 | | | 14,637,195 | |
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| | | | | 142,051,295 | |
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Overseas Private Investment Corp. — 9.66% | |
40,000,000 | | 0.00%, 3/17/19(a) | | | 40,000,000 | |
6,900,000 | | 1.37%, 4/30/18(a) | | | 6,987,876 | |
816,667 | | MTN, 1.44%, 4/30/18(a) | | | 827,022 | |
40,000,000 | | 1.55%, 5/17/18(a) | | | 40,234,431 | |
8,000,000 | | 1.68%, 5/20/18(a) | | | 8,049,379 | |
2,585,000 | | 1.70%, 11/15/18(a) | | | 2,601,713 | |
2,400,000 | | 1.70%, 11/15/18(a) | | | 2,415,516 | |
9,400,000 | | (US Treasury Bill Yield 3-Month), 1.72%, 4/20/35(b) | | | 9,400,000 | |
5,000,000 | | (US Treasury Bill Yield 3-Month), 1.80%, 7/20/22(b) | | | 5,000,000 | |
7,826,087 | | (US Treasury Bill Yield 3-Month), 1.80%, 9/15/22(b) | | | 7,826,087 | |
14,000,000 | | (US Treasury Bill Yield 3-Month), 1.80%, 2/15/28(b) | | | 14,000,000 | |
3,000,000 | | (US Treasury Bill Yield 3-Month), 1.80%, 2/15/28(b) | | | 3,000,000 | |
25,449,057 | | (US Treasury Bill Yield 3-Month), 1.80%, 1/15/30(b) | | | 25,449,057 | |
8,000,001 | | (US Treasury Bill Yield 3-Month), 1.81%, 8/15/19(b) | | | 8,000,001 | |
2,000,000 | | (US Treasury Bill Yield 3-Month), 1.81%, 12/16/19(b) | | | 2,000,000 | |
80,829,000 | | (US Treasury Bill Yield 3-Month), 1.81%, 9/15/20(b) | | | 80,829,000 | |
21,600,000 | | (US Treasury Bill Yield 3-Month), 1.81%, 11/15/22(b) | | | 21,600,000 | |
2,863,158 | | (US Treasury Bill Yield 3-Month), 1.81%, 3/15/24(b) | | | 2,863,158 | |
1,052,632 | | (US Treasury Bill Yield 3-Month), 1.81%, 3/15/24(b) | | | 1,052,632 | |
10,000,000 | | (US Treasury Bill Yield 3-Month), 1.81%, 6/15/25(b) | | | 10,000,000 | |
9,229,983 | | (US Treasury Bill Yield 3-Month), 1.81%, 10/10/25(b) | | | 9,229,983 | |
9,146,830 | | (US Treasury Bill Yield 3-Month), 1.81%, 10/10/25(b) | | | 9,146,830 | |
50,205,000 | | (US Treasury Bill Yield 3-Month), 1.81%, 2/15/28(b) | | | 50,205,000 | |
14,659,091 | | (US Treasury Bill Yield 3-Month), 1.81%, 11/15/28(b) | | | 14,659,091 | |
15,000,000 | | (US Treasury Bill Yield 3-Month), 1.81%, 8/15/29(b) | | | 15,000,000 | |
1,385,061 | | (US Treasury Bill Yield 3-Month), 1.81%, 6/28/32(b) | | | 1,385,061 | |
13,800,000 | | (US Treasury Bill Yield 3-Month), 1.81%, 6/1/33(b) | | | 13,800,000 | |
7,000,000 | | (US Treasury Bill Yield 3-Month), 1.81%, 10/15/33(b) | | | 7,000,000 | |
1,500,000 | | (US Treasury Bill Yield 3-Month), 1.81%, 10/15/33(b) | | | 1,500,000 | |
1,453,242 | | (US Treasury Bill Yield 3-Month), 1.81%, 12/15/33(b) | | | 1,453,242 | |
12,456,038 | | (US Treasury Bill Yield 3-Month), 1.81%, 6/15/34(b) | | | 12,456,038 | |
9,091,833 | | (US Treasury Bill Yield 3-Month), 1.81%, 6/15/34(b) | | | 9,091,833 | |
15,000,000 | | (US Treasury Bill Yield 3-Month), 1.81%, 7/7/40(b) | | | 15,000,000 | |
14,300,000 | | (US Treasury Bill Yield 3-Month), 1.81%, 7/7/40(b) | | | 14,300,000 | |
10,495,000 | | (US Treasury Bill Yield 3-Month), 1.81%, 7/7/40(b) | | | 10,495,000 | |
7,500,000 | | (US Treasury Bill Yield 3-Month), 1.81%, 7/7/40(b) | | | 7,500,000 | |
4,500,000 | | (US Treasury Bill Yield 3-Month), 1.81%, 7/7/40(b) | | | 4,500,000 | |
10,452,000 | | (US Treasury Bill Yield 3-Month), 1.82%, 5/15/30(b) | | | 10,452,000 | |
12,000,000 | | (US Treasury Bill Yield 3-Month), 1.84%, 1/20/35(b) | | | 12,000,000 | |
15,000,000 | | (US Treasury Bill Yield 3-Month), 1.84%, 4/20/35(b) | | | 15,000,000 | |
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
U.S. Government Money Market Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | |
Principal Amount | | | | | Value | |
| | |
| $ 12,440,000 | | | 2.26%, 2/11/19(a) | | $ | 12,478,115 | |
| 21,650,000 | | | 2.27%, 2/19/19(a) | | | 21,705,746 | |
| | | | | | | | |
| | | | | | | 560,493,811 | |
| | | | | | | | |
| |
| Total U.S. Government Agency Obligations | | | 2,623,101,790 | |
| | | | | | | | |
| (Cost $2,623,101,790) | | | | |
| |
| U.S. Treasury Obligations — 3.86% | | | | |
| U.S. Treasury Notes — 3.86% | | | | |
| 50,000,000 | | | 0.75%, 9/30/18 | | | 49,717,467 | |
| 125,000,000 | | | 0.75%, 2/15/19 | | | 123,634,844 | |
| 38,000,000 | | | 1.24%, 5/15/18(a) | | | 37,943,230 | |
| 12,500,000 | | | 1.28%, 8/15/18(a) | | | 12,440,170 | |
| | | | | | | | |
| | | | | | | 223,735,711 | |
| | | | | | | | |
| |
| Total U.S. Treasury Obligations | | | 223,735,711 | |
| | | | | | | | |
| (Cost $223,735,711) | | | | |
| |
| U.S. Government Agency Backed Mortgages — 1.20% | | | | |
| Fannie Mae — 0.50% | | | | |
| 11,126,963 | | | Pool #469782, 2.49%, 12/1/18 | | | 11,138,856 | |
| 10,682,364 | | | Pool #AM7163, (LIBOR USD 1-Month + 0.450%), 2.12%, 5/1/19(b) | | | 10,682,364 | |
| 42,492 | | | Series 2013-M13, Class FA, (LIBOR USD 1-Month + 0.350%), 2.22%, 5/25/18(b) | | | 42,493 | |
| 810,665 | | | Series 2013-M14, Class FA, (LIBOR USD 1-Month + 0.350%), 2.22%, 8/25/18(b) | | | 810,786 | |
| 3,476,850 | | | Series 2014-M8, Class FA, (LIBOR USD 1-Month + 0.250%), 1.84%, 5/1/18(b) | | | 3,476,854 | |
| 850,500 | | | Series 2015-M10, Class FA, (LIBOR USD 1-Month + 0.250%), 1.84%, 3/1/19(b) | | | 850,622 | |
| 102,421 | | | Series 2015-M3, Class FA, (LIBOR USD 1-Month + 0.220%), 1.81%, 6/1/18(b) | | | 102,420 | |
| 1,053,462 | | | Series 2015-M4, Class FA, (LIBOR USD 1-Month + 0.210%), 1.80%, 9/1/18(b) | | | 1,053,495 | |
| 38,846 | | | Series 2015-M7, Class ASQ2, 1.55%, 4/1/18 | | | 38,846 | |
| 1,368,502 | | | Series 2015-M8, Class FA, (LIBOR USD 1-Month + 0.170%), 1.76%, 11/1/18(b) | | | 1,368,287 | |
| | | | | | | | |
| | | | | | | 29,565,023 | |
| | | | | | | | |
| Freddie Mac — 0.70% | | | | |
| 14,193,935 | | | Series K703, Class A2, 2.70%, 5/1/18 | | | 14,193,935 | |
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
U.S. Government Money Market Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | |
Principal Amount | | | | | Value | |
| | |
| $ 9,125,397 | | | Series K704, Class A2, 2.41%, 8/1/18 | | $ | 9,129,759 | |
| 16,572,000 | | | Series K705, Class A2, 2.30%, 9/1/18 | | | 16,565,447 | |
| | | | | | | | |
| | | | | | | 39,889,141 | |
| | | | | | | | |
| |
| Total U.S. Government Agency Backed Mortgages | | | 69,454,164 | |
| | | | | | | | |
| (Cost $69,454,164) | | | | |
| |
| Variable Rate Demand Note — 3.79% | | | | |
| Municipal Bonds — 3.53% | | | | |
| California — 2.67% | | | | |
| 2,105,000 | | | Abag Finance Authority for Nonprofit Corps Gaia Buildings Revenue, Series A-T, 1.85%, 9/15/32, (Credit Support: Fannie Mae), Callable 4/15/18 @ 100(c) | | | 2,105,000 | |
| 34,450,000 | | | Abag Finance Authority for Nonprofit Corps Crossing Apartments Revenue, Series A, 1.68%, 12/15/37, (Credit Support: Fannie Mae), Callable 4/15/18 @ 100(c) | | | 34,448,967 | |
| 4,340,000 | | | California Statewide Communities Development Authority Oakmont Senior Living Revenue, Series Y, 1.68%, 8/1/31, (Credit Support: Fannie Mae), Callable 4/15/18 @ 100(c) | | | 4,339,870 | |
| 25,000,000 | | | California Statewide Communities Development Authority Oakmont Concord Project Revenue, Series Q, 1.70%, 6/15/35, (Credit Support: Fannie Mae), Callable 4/15/18 @ 100(c) | | | 24,999,250 | |
| 29,990,000 | | | California Statewide Communities Development Authority Multi Family Housing Dublin Ranch Apartments Revenue, 1.70%, 12/15/37, (Credit Support: Fannie Mae), Callable 4/15/18 @ 100(c) | | | 29,989,101 | |
| 3,700,000 | | | City of Modesto Multi Family Housing Westdale Commons Revenue, Series A, 1.38%, 11/15/32, (Credit Support: Fannie Mae), Callable 4/15/18 @ 100(c) | | | 3,699,778 | |
| 32,200,000 | | | County of Contra Costa Creekview Apartments Revenue, Series B, 1.70%, 7/1/36, (Credit Support: Freddie Mac), Callable 4/9/18 @ 100(c) | | | 32,199,034 | |
| 4,660,000 | | | County of San Bernardino Multi Family Housing Revenue, Series A, 1.58%, 2/15/27, (Credit Support: Fannie Mae), Callable 4/15/18 @ 100(c) | | | 4,659,814 | |
| 8,900,000 | | | Los Angeles Community Redevelopment Agency Met Apartments Revenue, 1.47%, 12/15/24, (Credit Support: Fannie Mae), Callable 4/15/18 @ 100(c) | | | 8,899,556 | |
| 9,286,000 | | | Los Angeles County Housing Authority Malibu Meadows Project Refunding Revenue, Series B, 1.58%, 4/15/28, (Credit Support: Fannie Mae), Callable 4/15/18 @ 100(c) | | | 9,285,629 | |
| | | | | | | | |
| | | | | | | 154,625,999 | |
| | | | | | | | |
| Kentucky — 0.00% | | | | |
| 290,000 | | | Kentucky Housing Corp. Overlook Terraces Apartments Revenue, Series B, 1.85%, 11/15/40, (Credit Support: Fannie Mae), Callable 4/15/18 @ 100(c) | | | 290,000 | |
| | | | | | | | |
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
U.S. Government Money Market Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | |
Principal Amount | | | | | Value | |
| | |
| New York — 0.86% | | | | |
| $ 1,560,000 | | | New York State Housing Finance Agency Revenue, Series B, 1.82%, 5/15/33, (Credit Support: Fannie Mae), Callable 4/9/18 @ 100(c) | | $ | 1,560,000 | |
| 41,400,000 | | | New York State Housing Finance Agency 900 8th Avenue Revenue, Series A, 1.60%, 5/15/35, (Credit Support: Fannie Mae), Callable 4/11/18 @ 100(c) | | | 41,398,345 | |
| 6,900,000 | | | New York State Housing Finance Agency 316 11th Avenue Revenue, Series B, 1.70%, 5/15/41, (Credit Support: Fannie Mae), Callable 4/9/18 @ 100(c) | | | 6,900,000 | |
| | | | | | | | |
| | | | | | | 49,858,345 | |
| | | | | | | | |
| | |
| | | | | | | 204,774,344 | |
| | | | | | | | |
| |
| Corporate Bonds — 0.26% | | | | |
| Financial — 0.26% | | | | |
| 15,200,000 | | | Net Magan Two LLC, 1.88%, 4/1/26, (LOC : Federal Home Loan Bank)(c) | | | 15,200,000 | |
| | | | | | | | |
| | |
| | | | | | | 15,200,000 | |
| | | | | | | | |
| |
| Total Variable Rate Demand Note | | | 219,974,344 | |
| | | | | | | | |
| (Cost $219,974,344) | | | | |
| |
| Repurchase Agreements — 45.65% | | | | |
| 200,000,000 | | | BNP Paribas Securities Corp., dated 3/23/18; due 5/23/18 at 1.70% with maturity value of $200,576,111 (fully collateralized by U.S. Treasury securities with maturity dates ranging from 4/15/18 to 8/15/43 at rates ranging from 0.00% to 3.63%, aggregate original par and fair value of $260,479,695 and $204,000,000, respectively) | | | 200,000,000 | |
| 125,000,000 | | | BNP Paribas Securities Corp., dated 3/29/18; due 4/2/18 at 1.77% with maturity value of $125,024,583 (fully collateralized by U.S. Treasury securities with maturity dates ranging from 8/15/26 to 5/15/45 at rates ranging from 0.00% to 3.00%, aggregate original par and fair value of $138,100,228 and $127,500,000, respectively) | | | 125,000,000 | |
| | | | | |
| | | | Total Value of BNP Paribas Securities Corp., (collateral value of $ 331,500,000) | | | 325,000,000 | |
| | | | | |
| | |
| 343,000,000 | | | Citigroup Global, dated 3/29/18; due 4/2/18 at 1.77% with maturity value of $343,067,457 (fully collateralized by Federal Home Loan Bank, Federal Farm Credit Bank, Fannie Mae and Freddie Mac securities with maturity dates ranging from 4/2/18 to 2/22/41 at rates ranging from 0.00% to 6.75%, aggregate original par and fair value of $361,277,000 and $349,860,191, respectively) | | | 343,000,000 | |
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
U.S. Government Money Market Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | | | |
Principal Amount | | | | | Value | |
| | |
| $100,000,000 | | | Citigroup Global, dated 3/29/18; due 4/2/18 at 1.76% with maturity value of $100,019,556 (fully collateralized by a U.S. Treasury security with a maturity date of 5/15/42 at a rate of 3.00%, original par and fair value of $100,537,700 and $102,000,018, respectively) | | $ | 100,000,000 | |
| 50,000,000 | | | Citigroup Global, dated 3/29/18; due 4/2/18 at 1.78% with maturity value of $50,009,889 (fully collateralized by Ginnie Mae, Fannie Mae, Freddie Mac and U.S. Treasury securities with maturity dates ranging from 8/15/18 to 4/15/53 at rates ranging from 0.00% to 6.00%, aggregate original par and fair value of $55,081,534 and $51,000,000, respectively) | | | 50,000,000 | |
| | | | | |
| | | | Total Value of Citigroup Global, (collateral value of $ 502,860,209) | | | 493,000,000 | |
| | | | | |
| | |
| 225,000,000 | | | Credit Agricole Corporate and Investment Bank, dated 3/29/18; due 4/2/18 at 1.72% with maturity value of $225,043,000 (fully collateralized by U.S. Treasury securities with maturity dates ranging from 12/31/18 to 12/31/23 at rates ranging from 1.50% to 2.25%, aggregate original par and fair value of $230,727,400 and $229,500,012, respectively) | | | 225,000,000 | |
| 200,000,000 | | | Credit Agricole Corporate and Investment Bank, dated 3/20/18; due 4/20/18 at 1.65% with maturity value of $200,284,167 (fully collateralized by U.S. Treasury securities with maturity dates ranging from 11/30/18 to 11/15/44 at rates ranging from 1.25% to 3.00%, aggregate original par and fair value of $203,761,400 and $204,000,037, respectively) | | | 200,000,000 | |
| | | | | |
| | | | Total Value of Credit Agricole Corporate and Investment Bank, (collateral value of $ 433,500,049) | | | 425,000,000 | |
| | | | | |
| | |
| 80,000,000 | | | Deutsche Bank Securities, dated 3/29/18; due 4/2/18 at 1.80% with maturity value of $80,016,000 (fully collateralized by a U.S. Treasury security with a maturity date of 2/28/22 at a rate of 1.88%, original par and fair value of $83,492,200 and $81,600,065, respectively) | | | 80,000,000 | |
| | | | | |
| | | | Total Value of Deutsche Bank Securities, (collateral value of $ 81,600,065) | | | 80,000,000 | |
| | | | | |
| | |
| 65,000,000 | | | Merrill Lynch, Pierce, Fenner, Smith, dated 3/29/18; due 4/2/18 at 1.80% with maturity value of $65,013,000 (fully collateralized by Freddie Mac, Fannie Mae, Federal Home Loan Bank and Federal Farm Credit Bank securities with maturity dates ranging from 6/8/18 to 3/2/38 at rates ranging from 0.00% to 6.25%, aggregate original par and fair value of $66,324,000 and $66,300,603, respectively) | | | 65,000,000 | |
| | | | | |
| | | | Total Value of Merrill Lynch, Pierce, Fenner, Smith, (collateral value of $ 66,300,603) | | | 65,000,000 | |
| | | | | |
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
U.S. Government Money Market Fund (cont.)
March 31, 2018 (Unaudited)
| | | | | | |
Principal Amount | | | | Value | |
| |
| | |
$900,000,000 | | National Australia Bank, dated 3/29/18; due 4/2/18 at 1.78% with maturity value of $900,178,000 (fully collateralized by U.S. Treasury securities with maturity dates ranging from 8/9/18 to 8/15/24 at rates ranging from 0.00% to 3.75%, aggregate original par and fair value of $900,000,000 and $918,116,700, respectively) | | $ | 900,000,000 | |
| | | |
| | Total Value of National Australia Bank, (collateral value of $ 918,116,700) | | | 900,000,000 | |
| | | |
| | |
110,000,000 | | TD Securities (USA), dated 3/29/18; due 4/2/18 at 1.81% with maturity value of $110,022,122 (fully collateralized by Ginnie Mae and Freddie Mac securities with maturity dates ranging from 9/1/47 to 3/20/48 at rates ranging from 3.50% to 4.00%, aggregate original par and fair value of $110,844,469 and $112,200,000, respectively) | | | 110,000,000 | |
| | | |
| | Total Value of TD Securities (USA), (collateral value of $ 112,200,000) | | | 110,000,000 | |
| | | |
| | |
150,000,000 | | Wells Fargo Securities, dated 3/29/18; due 4/2/18 at 1.81% with maturity value of $150,030,167 (fully collateralized by a Fannie Mae security with a maturity date of 1/1/48 at a rate of 3.50%, original par and fair value of $153,305,500 and $153,000,001, respectively) | | | 150,000,000 | |
100,000,000 | | Wells Fargo Securities, dated 3/29/18; due 4/2/18 at 1.80% with maturity value of $100,020,000 (fully collateralized by U.S. Treasury securities with maturity dates ranging from 6/21/18 to 11/30/18 at rates ranging from 0.00% to 1.00%, aggregate original par and fair value of $102,400,200 and $102,000,028, respectively) | | | 100,000,000 | |
| | | |
| | Total Value of Wells Fargo Securities, (collateral value of $ 255,000,029) | | | 250,000,000 | |
| | | |
| |
Total Repurchase Agreements | | | 2,648,000,000 | |
| | | | | | |
(Cost $2,648,000,000) | | | | |
| |
Total Investments | | $ | 5,784,266,009 | |
(Cost $5,784,266,009)(d) — 99.72% | | | | |
| |
Other assets in excess of liabilities — 0.28% | | | 16,220,666 | |
| | | | | | |
| |
NET ASSETS — 100.00% | | $ | 5,800,486,675 | |
| | | | | | |
|
SCHEDULE OF PORTFOLIO INVESTMENTS |
U.S. Government Money Market Fund (cont.)
March 31, 2018 (Unaudited)
(a) | Represents effective yield to maturity on date of purchase. |
(b) | Variable rate security. The rate reflected in the Schedule of Portfolio Investments is the rate in effect on March 31, 2018. |
(c) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end. |
(d) | Tax cost of securities is equal to book cost of securities. |
Abbreviations used are defined below:
GMTN - Global Medium Term Note
LIBOR - London Interbank Offered Rate
LOC - Letter of Credit
MTN - Medium Term Note
See Notes to the Financial Statements.
Statements of Assets and Liabilities
March 31, 2018 (Unaudited)
| | |
| | U.S. Government Money Market Fund |
| | | | |
Assets: | | | | |
Investments, at value (cost $3,136,266,009) | | | $3,136,266,009 | |
Repurchase agreements, at value (cost $2,648,000,000) | | | 2,648,000,000 | |
Cash | | | 26,215,396 | |
Interest and dividend receivable | | | 5,566,798 | |
Prepaid expenses and other assets | | | 46,185 | |
| | | | |
Total Assets | | | 5,816,094,388 | |
| | | | |
Liabilities: | | | | |
Distributions payable | | | 1,666,143 | |
Payable for investments purchased | | | 11,741,113 | |
Accrued expenses and other payables: | | | | |
Investment advisory fees | | | 109,691 | |
Accounting fees | | | 74,776 | |
Audit fees | | | 22,360 | |
Trustees’ fees | | | 43,402 | |
Distribution fees | | | 1,598,041 | |
Custodian fees | | | 31,383 | |
Shareholder servicing fees | | | 120,565 | |
Transfer agent fees | | | 8,806 | |
Other | | | 191,433 | |
| | | | |
Total Liabilities | | | 15,607,713 | |
| | | | |
Net Assets | | | $5,800,486,675 | |
| | | | |
Net Assets Consists of: | | | | |
Capital | | | $5,800,701,539 | |
Distributions in excess of net investment income | | | (35,117 | ) |
Accumulated net realized losses from investment transactions | | | (179,747 | ) |
| | | | |
Net Assets | | | $5,800,486,675 | |
| | | | |
Statements of Assets and Liabilities (cont.)
March 31, 2018 (Unaudited)
| | |
| | U.S. Government Money Market Fund |
| | | | |
Net Assets | | | | |
RBC Institutional Class 1 | | $ | 2,510,686,750 | |
RBC Institutional Class 2 | | | 2,060,879,725 | |
RBC Investor Class | | | 1,228,920,200 | |
| | | | |
Total | | $ | 5,800,486,675 | |
| | | | |
Shares Outstanding (Unlimited number of shares authorized, no par value): | | | | |
RBC Institutional Class 1 | | | 2,510,743,502 | |
RBC Institutional Class 2 | | | 2,060,912,562 | |
RBC Investor Class | | | 1,229,080,393 | |
| | | | |
Total | | | 5,800,736,457 | |
| | | | |
Net Asset Values and Redemption Prices Per Share: | | | | |
RBC Institutional Class 1 | | $ | 1.00 | |
| | | | |
RBC Institutional Class 2 | | $ | 1.00 | |
| | | | |
RBC Investor Class | | $ | 1.00 | |
| | | | |
See Notes to the Financial Statements.
Statements of Operations
For the Six Months Ended March 31, 2018 (Unaudited)
| | |
| | U.S. Government |
| | Money Market Fund |
Investment Income: | | |
Interest income | | $38,391,330 |
Expenses: | | |
Investment advisory fees | | 2,964,403 |
Distribution fees–RBC Institutional Class 1 | | 346 |
Distribution fees–RBC Institutional Class 2 | | 1,193,810 |
Distribution fees–RBC Investor Class | | 8,483,246 |
Accounting fees | | 212,426 |
Audit fees | | 17,867 |
Custodian fees | | 65,933 |
Insurance fees | | 25,433 |
Legal fees | | 169,247 |
Registrations and filing fees | | 137,272 |
Shareholder reports | | 72,669 |
Transfer agent fees–RBC Institutional Class 1 | | 13,412 |
Transfer agent fees–RBC Institutional Class 2 | | 3,300 |
Transfer agent fees–RBC Investor Class | | 3,023 |
Transfer agent fees–RBC Reserve Class | | 814 |
Transfer agent fees–RBC Select Class | | 940 |
Trustees’ fees and expenses | | 265,281 |
Shareholder services administration fees–RBC Institutional Class 1 | | 660,170 |
Shareholder services administration fees–RBC Institutional Class 2 | | 31 |
Tax expense | | 1,875 |
Other fees | | 128,155 |
Total expenses before fee waiver/reimbursement | | 14,419,653 |
Expenses waived/reimbursed by: | | |
Distributor - Class Specific | | (1,167,945) |
Net expenses | | 13,251,708 |
Net Investment Income | | 25,139,622 |
Realized/Unrealized Gains/(Losses): | | |
Net realized gains from investment transactions | | 42,698 |
Change in net assets resulting from operations | | $25,182,320 |
See Notes to the Financial Statements.
Statements of Changes in Net Assets
| | | | | | | | |
| | U.S. Government Money Market Fund | |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | | For the Year Ended September 30, 2017 | |
From Investment Activities | | | | | | | | |
Operations: | | | | | | | | |
Net investment income | | $ | 25,139,622 | | | $ | 21,104,372 | |
Net realized gains from investments | | | 42,698 | | | | 31,146 | |
| | | | | | | | |
Change in net assets resulting from operations | | | 25,182,320 | | | | 21,135,518 | |
| | | | | | | | |
Distributions from Net Investment Income | | | | | | | | |
RBC Institutional Class 1 Shareholders | | | (14,791,490 | ) | | | (16,004,154 | ) |
RBC Institutional Class 2 Shareholders | | | (8,215,297 | ) | | | (4,972,564 | ) |
RBC Investor Class Shareholders | | | (2,167,951 | ) | | | (279,121 | ) |
RBC Reserve Class Shareholders | | | — | | | | (179,022 | ) |
RBC Select Class Shareholders | | | — | | | | (229,649 | ) |
| | | | | | | | |
Change in net assets resulting from shareholder distributions | | | (25,174,738 | ) | | | (21,664,510 | ) |
| | | | | | | | |
Capital Transactions: | | | | | | | | |
Proceeds from shares issued | | | 9,402,932,386 | | | | 35,980,819,255 | |
Distributions reinvested | | | 19,433,097 | | | | 13,341,013 | |
Cost of shares redeemed | | | (9,213,448,635 | ) | | | (39,873,426,912 | ) |
| | | | | | | | |
Change in net assets resulting from capital transactions | | | 208,916,848 | | | | (3,879,266,644 | ) |
| | | | | | | | |
Net increase/(decrease) in net assets | | | 208,924,430 | | | | (3,879,795,636 | ) |
Net Assets: | | | | | | | | |
Beginning of period | | | 5,591,562,245 | | | | 9,471,357,881 | |
| | | | | | | | |
End of period | | $ | 5,800,486,675 | | | $ | 5,591,562,245 | |
| | | | | | | | |
Distributions in excess of net investment income | | $ | (35,117 | ) | | $ | (1 | ) |
| | | | | | | | |
Share Transactions: | | | | | | | | |
Issued | | | 9,402,932,386 | | | | 35,980,819,255 | |
Reinvested | | | 19,433,097 | | | | 13,341,013 | |
Redeemed | | | (9,213,448,635 | ) | �� | | (39,873,426,912 | ) |
| | | | | | | | |
Change in shares resulting from capital transactions | | | 208,916,848 | | | | (3,879,266,644 | ) |
| | | | | | | | |
See Notes to the Financial Statements.
U.S. Government Money Market Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | | | | | |
| | | | Investment Activities | | Distributions | | |
| | Net Asset Value, Beginning of Period | | Net Investment Income(a) | | Net Realized and Unrealized Gains (Losses) on Investments | | Total from Investment Activities | | Net Investment Income | | Total Distributions | | Net Asset Value, End of Period |
RBC Institutional Class 1 | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | $1.00 | | 0.01 | | —(b) | | 0.01 | | (0.01) | | (0.01) | | $1.00 |
Year Ended 9/30/17 | | 1.00 | | —(b) | | —(b) | | —(b) | | —(b) | | —(b) | | 1.00 |
Year Ended 9/30/16 | | 1.00 | | —(b) | | —(b) | | —(b) | | —(b) | | —(b) | | 1.00 |
Year Ended 9/30/15 | | 1.00 | | —(b) | | —(b) | | —(b) | | —(b) | | —(b) | | 1.00 |
Year Ended 9/30/14 | | 1.00 | | —(b) | | —(b) | | —(b) | | —(b) | | —(b) | | 1.00 |
Year Ended 9/30/13 | | 1.00 | | —(b) | | —(b) | | —(b) | | —(b) | | —(b) | | 1.00 |
RBC Institutional Class 2 | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | $1.00 | | 0.01 | | —(b) | | 0.01 | | (0.01) | | (0.01) | | $1.00 |
Year Ended 9/30/17 | | 1.00 | | —(b) | | —(b) | | —(b) | | —(b) | | —(b) | | 1.00 |
Year Ended 9/30/16 | | 1.00 | | —(b) | | —(b) | | —(b) | | —(b) | | —(b) | | 1.00 |
Year Ended 9/30/15 | | 1.00 | | —(b) | | —(b) | | —(b) | | —(b) | | —(b) | | 1.00 |
Year Ended 9/30/14 | | 1.00 | | —(b) | | —(b) | | —(b) | | —(b) | | —(b) | | 1.00 |
Year Ended 9/30/13 | | 1.00 | | —(b) | | —(b) | | —(b) | | —(b) | | —(b) | | 1.00 |
RBC Investor Class | | | | | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | $1.00 | | —(b) | | —(b) | | —(b) | | —(b) | | —(b) | | $1.00 |
Year Ended 9/30/17 | | 1.00 | | —(b) | | —(b) | | —(b) | | —(b) | | —(b) | | 1.00 |
Year Ended 9/30/16 | | 1.00 | | —(b) | | —(b) | | —(b) | | —(b) | | —(b) | | 1.00 |
Year Ended 9/30/15 | | 1.00 | | —(b) | | —(b) | | —(b) | | —(b) | | —(b) | | 1.00 |
Year Ended 9/30/14 | | 1.00 | | —(b) | | —(b) | | —(b) | | —(b) | | —(b) | | 1.00 |
Year Ended 9/30/13 | | 1.00 | | —(b) | | —(b) | | —(b) | | —(b) | | —(b) | | 1.00 |
(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. |
U.S. Government Money Market Fund
(Selected data for a share outstanding throughout the periods indicated)
| | | | | | | | | | |
| | | | Ratios/Supplemental Data |
| | Total Return(a) | | Net Assets, End of Period (milllions) | | 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* |
RBC Institutional Class 1 | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | 0.55%(b) | | $2,511 | | 0.19%(c) | | 1.12%(c) | | 0.19%(c) |
Year Ended 9/30/17 | | 0.60% | | 2,210 | �� | 0.18% | | 0.55% | | 0.18% |
Year Ended 9/30/16 | | 0.20% | | 2,074 | | 0.17% | | 0.23% | | 0.18% |
Year Ended 9/30/15 | | 0.01% | | 921 | | 0.11% | | 0.01% | | 0.17% |
Year Ended 9/30/14 | | 0.01% | | 1,173 | | 0.09% | | 0.01% | | 0.17% |
Year Ended 9/30/13 | | 0.01% | | 1,231 | | 0.13% | | 0.01% | | 0.17% |
RBC Institutional Class 2 | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | 0.50%(b) | | $2,061 | | 0.29%(c) | | 1.03%(c) | | 0.29%(c) |
Year Ended 9/30/17 | | 0.50% | | 1,224 | | 0.29% | | 0.54% | | 0.29% |
Year Ended 9/30/16 | | 0.12% | | 663 | | 0.26% | | 0.14% | | 0.28% |
Year Ended 9/30/15 | | 0.01% | | 329 | | 0.11% | | 0.01% | | 0.27% |
Year Ended 9/30/14 | | 0.01% | | 299 | | 0.09% | | 0.01% | | 0.27% |
Year Ended 9/30/13 | | 0.01% | | 497 | | 0.12% | | 0.01% | | 0.27% |
RBC Investor Class | | | | | | | | | | |
Six Months Ended 3/31/18 (Unaudited) | | 0.15%(b) | | $1,229 | | 1.00%(c) | | 0.25%(c) | | 1.14%(c) |
Year Ended 9/30/17 | | 0.02% | | 2,158 | | 0.87% | | 0.01% | | 1.15% |
Year Ended 9/30/16 | | 0.01% | | 728 | | 0.36% | | 0.01% | | 1.12% |
Year Ended 9/30/15 | | 0.01% | | 705 | | 0.12% | | 0.01% | | 1.12% |
Year Ended 9/30/14 | | 0.01% | | 672 | | 0.09% | | 0.01% | | 1.12% |
Year Ended 9/30/13 | | 0.01% | | 795 | | 0.13% | | 0.01% | | 1.12% |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
(a) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
See Notes to the Financial Statements.
|
NOTES TO FINANCIAL STATEMENTS |
March 31, 2018 (Unaudited)
1. Organization:
RBC Funds Trust (the “Trust”) is registered under the Investment Company Act of 1940 (as amended) as an open-end management investment company. The Trust was organized as a Delaware statutory trust on December 16, 2003 and currently consists of 18 portfolios. Overall responsibility for the management of the Trust is vested in its Board of Trustees (the “Board”).Predecessor funds to the Trust were reorganized as portfolios of the Trust effective April 16, 2004. This report includes the U.S. Government Money Market Fund (“Fund”).
The Fund offers three share classes: RBC Institutional Class 1, RBC Institutional Class 2 and RBC Investor Class. Prior to November 9, 2017, the Fund also offered shares in RBC Select Class and RBC Reserve Class.
RBC Global Asset Management (U.S.) Inc. (“RBC GAM (US)” or “Advisor” or “Co-Administrator”) acts as the investment advisor for the Fund. The officers of the Trust (“Fund Management”) are also employees of RBC GAM (US).
2. Significant Accounting Policies
The Fund is an investment company that follows accounting and reporting guidance under the Financial Accounting Standards Board. Summarized below are the significant accounting policies of the Funds. These policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). Fund Management follows these policies when preparing financial statements. Fund Management may also be required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The financial statements are as of the close of regular trading on the New York Stock Exchange (“NYSE”).
In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in the ASU shorten the amortization period for certain callable debt securities, held at a premium, to be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount; which continues to be amortized to maturity. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management is currently evaluating the impact, if any, of applying this provision.
Security Valuation:
The Fund has elected to use the amortized cost method to value its securities (other than other investment companies) pursuant to Rule 2a-7 of the Investment Company Act of 1940, as amended, which the Board believes approximates fair market value. The amortized cost method involves valuing a security initially at its cost and thereafter assuming a constant amortization to maturity of any discount or premium. Amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, securities valued at amortized cost are categorized as Level 2 in the fair value hierarchy (see “Fair Value Measurements” below for additional information). If amortized cost no longer approximates fair value due to credit or other impairments of an issuer, the Fund will determine the fair value of its securities by using pricing and valuation procedures approved by the Board. Investments in open-end investment companies (mutual funds) are valued at net asset value and are categorized as Level 1 in the fair value hierarchy.
The Board has delegated to the Fund’s Pricing Committee (“Pricing Committee”) the responsibility for implementing the pricing and valuation procedures, including responsibility for determining the fair value of the Fund’s securities or other assets and liabilities. The Pricing Committee includes representatives of the Fund’s Advisor, and Co-Administrator, including personnel from accounting and operations, investment management, trading, risk management, compliance and legal. The Pricing Committee meets at least quarterly to review and approve Fund valuation matters, including a review
|
NOTES TO FINANCIAL STATEMENTS |
of the Fund’s pricing activity and operations, fair value measurements, pricing vendors, policies and procedures, and related controls. At least a quorum of the Pricing Committee shall meet more frequently, as needed, to consider and approve time-sensitive fair valuation matters. The Pricing Committee reports to the Valuation, Portfolio Management and Performance Committee (“Valuation Committee”) of the Board. Members of the Pricing Committee meet with the Valuation Committee and the Board at each of their regularly scheduled meetings to discuss valuation matters and actions taken during the period.
In accordance with Rule 2a-7, the fair values of the securities held in the Fund are determined at least once per week using evaluated prices supplied by third-party pricing vendors approved by the Board. The pricing services utilize both dealer-supplied valuations and electronic data processing techniques that take into account appropriate factors such as institutional-sized trading in similar groups of securities, yield, quality, coupon rate, maturity and type of issue. These security values are then compared to the securities’ amortized cost. If a security price is not available from a pricing service or broker-dealer, or Fund Management determines that a price provided by a pricing service or broker-dealer does not approximate fair value for purposes of this comparison, the security’s fair value will be determined in good faith by the Pricing Committee in accordance with procedures and methodologies adopted by the Board. General factors used in determining the fair value of securities include, but are not limited to, fundamental analytical data relating to the security, the issuer and the market, such as duration, prepayment and default rates; general level of interest rates and changes in interest rates; information from broker-dealers; trading in similar securities; any restrictions on disposition of the security; and an evaluation of the forces that influence the market in which the investments are traded.
Fair Value Measurements:
The Funds disclose the fair value of their investments in a hierarchy that categorizes investments based on the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows:
• Level 1 - Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access at the measurement date.
• Level 2 - Significant inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active. Observable inputs may include quoted prices for similar securities, interest rates, spreads, prepayment spreads, etc.
• Level 3 - Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those securities.
Inputs used in determining fair value of an investment may include, but are not limited to, price information, volatility statistics, credit and market data, and other factors, all of which may be either observable or unobservable. Inputs can vary among investments and will be impacted by the investment type and volume of activity for the particular security or similar securities in the market. Investments in the Level 3 category are generally supported by transactions and quoted prices from dealers participating in the market for those investments. Investments may be included in the Level 3 category due to a lack of market activity or transparency. Internal valuation models may also be used as a pricing source for Level 3 investments. Internal valuation models may rely on one or more unobservable inputs, such as estimated cash flows, financial statement analysis and discount rates.
|
NOTES TO FINANCIAL STATEMENTS |
The summary of inputs used to determine the fair value of the Fund’s investments as of March 31, 2018 is as follows:
| | | | | | | | | | | | | | | | |
Funds | | Level 1 Quoted Prices | | | Level 2 Significant Observable Inputs | | | Level 3 Significant Unobservable Inputs | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Investments in Securities | | | | | | | | | | | | | | | | |
U.S. Government Money Market Fund | | | $— | | | | 5,784,266,009 | (a)(b) | | | $— | | | | 5,784,266,009 | |
(a) The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Portfolio Investments.
(b) The breakdown of the Fund’s investments by state classification or political subdivision is disclosed in the Schedule of Portfolio Investments.
During the period ended March 31, 2018, the Fund recognized no transfers to/from Level 1 or 2. The Fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 at the end of the year utilizing fair value at the beginning of the year.
Financial Instruments:
Repurchase Agreements:
The Fund may enter into repurchase agreements with counterparties whom the Advisor has deemed creditworthy, including primary dealers that report to the Federal Reserve Bank of New York or other large U.S. commercial banks or broker-dealers. These repurchase agreements are subject to the seller’s agreement to repurchase such securities at a mutually agreed upon date and price. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates.
Securities pledged by the dealers as collateral for repurchase agreements are held by a custodian bank until maturity of the repurchase agreement. The Fund has procedures to monitor additional collateral, if needed, to ensure that the daily market value of the collateral remains in excess of the market value of the repurchase agreement in the event of a default.
Master Repurchase Agreements (“MRA”) permit the Fund, under certain circumstances, including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of a MRA counterparty’s bankruptcy or insolvency. Pursuant to the terms of the MRA, the Fund receives securities as collateral with a market value in excess of the repurchase price to be received by the Fund upon the maturity of the repurchase transaction. Upon a bankruptcy or insolvency of the MRA counterparty, the Fund recognizes a liability with respect to such excess collateral to reflect the Fund’s obligation under bankruptcy law to return the excess to the counterparty. Details of the counterparties and collateral for repurchase agreements are shown on the Schedule of Portfolio Investments.
Credit Enhancement:
Certain obligations held by 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.
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 cost of the specific security (also known as identified cost
|
NOTES TO FINANCIAL STATEMENTS |
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:
The Fund pays the expenses that are directly related to its operations, such as custodian fees or advisory fees. Expenses incurred by the Trust, such as trustee or legal fees, are allocated among each of the Funds in the Trust either proportionately based upon 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 and transfer agent 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 on relative net assets.
Distributions to Shareholders:
The 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 US GAAP. These “book/tax” differences may be either temporary or permanent in nature. To the extent these differences are determined, as of the end of the tax year, to be permanent (e.g. paydowns), they are reclassified within the Fund’s capital accounts based on their federal tax basis treatment.
When-Issued Transactions:
The Fund may engage in when-issued transactions. The Fund records 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 March 31, 2018, the Fund held no when-issued securities.
3. Agreements and Other Transactions with Affiliates:
The Trust has entered into an investment advisory agreement with RBC GAM (US) under which RBC GAM (US) manages the Fund’s assets and furnishes related office facilities, equipment, research and personnel. The agreement requires the Fund to pay RBC GAM (US) a monthly fee based upon average daily net assets. Under the terms of the agreement, RBC GAM (US) is entitled to receive fees based on a percentage of the average daily net assets of the Fund as follows:
| | | | |
| | Annual Rate | |
U.S. Government Money Market Fund | | | 0.10% | |
RBC Institutional Class 1 of the Fund pays the Advisor an annual shareholder services administration fee of 0.05% of the average daily net assets attributable to RBC Institutional Class 1 shares 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 agreement in order to maintain the net annual Fund operating expenses (excluding certain fees such as interest, taxes and acquired fund fees and expenses) at 0.20% for RBC Institutional Class 1. During the period ended March 31, 2018, there were no fees waived under this agreement.
RBC GAM (US) serves as co-administrator to the Fund. BNY Mellon serves as co-administrator and fund accounting agent. Services provided under the administrative services agreement include providing day-to-day administration of matters related to the Fund, maintenance of the records and the preparation of reports. Under the terms of the administrative services agreement, RBC GAM (US) does not receive an administration services fee. BNY Mellon receives a fee for its services payable by the
|
NOTES TO FINANCIAL STATEMENTS |
Fund based in part on the Fund’s average net assets. BNY Mellon’s fee is included with “Accounting fees” in the Statement of Operations.
Certain Officers and Trustees of the Trust are affiliated with the Advisor. Such Officers and Trustees receive no compensation from the Fund for serving in their respective roles.
The Trust currently pays each of the independent Trustees (Trustees of the Trust who are not directors, officers or employees of the Advisor, either Co-Administrator or Distributor) an annual retainer of $54,000. The Board Chairperson and Audit Committee Chairperson each receive an additional retainer of $2,500 annually, and all other Trustees serving as Chair of a Board committee each receive an additional retainer of $1,000 annually. In addition, independent Trustees receive a quarterly meeting fee of $6,500 for each in-person Board meeting attended, a meeting fee of $1,500 for each telephonic or special board meeting attended, a $1,500 fee for each Board committee meeting attended, and are reimbursed for all out-of-pocket expenses relating to attendance at such meetings. These amounts are included in the Statement of Operations in “Trustees’ fees”.
4. Fund Distribution:
The Fund has adopted a Shareholder Account and Distribution Services (12b-1) Plan (the “Plan”) with respect to RBC Institutional Class 2 and RBC Investor Class, in which Quasar Distributors LLC (the “Distributor”) acts as the Fund’s distributor. The Plan permits the Fund to make payments for or to reimburse the Distributor or others, including RBC Capital Markets, LLC, 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 | |
12b-1 Plan Fee | | | 0.15% | | | | 1.00% | |
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.
Pursuant to a shareholder account and distribution services agreement between the Distributor and RBC Capital Markets, LLC, the Distributor has agreed to compensate RBC Capital Markets, LLC for certain shareholder account servicing support provided to the Fund. RBC Capital Markets, LLC has agreed to waive fees and/or reimburse expenses in order to maintain the net annual Fund operating expenses for each class listed below to the following amounts:
| | | | |
Share Class | | Operating Expense Limit | |
RBC Institutional Class 2 | | | 0.30% | |
RBC Investor Class | | | 1.00% | |
This expense limitation agreement is in place until January 31, 2019. 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 RBC Capital Markets, LLC, any expenses in excess of the expense limitation and repay RBC Capital Markets, LLC such amounts, provided the Fund is able to effect such repayment and remain in compliance with the expense limitation. At March 31, 2018, the amount subject to possible recoupment under the expense limitation agreement is $827,611.
RBC Capital Markets, LLC and/or the Advisor may voluntarily waive and/or reimburse additional Fund operating expenses at any time, such as to maintain a minimum yield in the fund. Any such voluntary program may be modified or discontinued at any time without notice.
For the period ended March 31, 2018, the following distribution fees were waived:
| | | | |
Share Class | | Distribution Fees Waived | |
RBC Investor Class | | | $338,488 | |
|
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 issued, reinvested and redeemed at $1.00 per share.
Transactions for the period were as follows:
| | | | | | | | |
| | U.S. Government Money Market Fund | |
| | For the Six Months Ended March 31, 2018 (Unaudited) | | | For the Year Ended September 30, 2017 | |
CAPITAL TRANSACTIONS: | | | | | | | | |
RBC Institutional Class 1 | | | | | | | | |
Proceeds from shares issued | | $ | 5,510,126,899 | | | $ | 26,573,845,998 | |
Distributions reinvested | | | 9,057,867 | | | | 7,724,325 | |
Cost of shares redeemed | | | (5,218,074,024 | ) | | | (26,445,458,238 | ) |
| | | | | | | | |
Change in RBC Institutional Class 1 | | $ | 301,110,742 | | | $ | 136,112,085 | |
| | | | | | | | |
RBC Institutional Class 2 | | | | | | | | |
Proceeds from shares issued | | $ | 1,805,929,938 | | | $ | 2,556,565,068 | |
Distributions reinvested | | | 8,208,669 | | | | 4,966,226 | |
Cost of shares redeemed | | | (976,775,455 | ) | | | (2,001,156,197 | ) |
| | | | | | | | |
Change in RBC Institutional Class 2 | | $ | 837,363,152 | | | $ | 560,375,097 | |
| | | | | | | | |
RBC Investor Class | | | | | | | | |
Proceeds from shares issued | | $ | 2,086,875,549 | | | $ | 3,951,875,358 | |
Distributions reinvested | | | 2,166,561 | | | | 279,155 | |
Cost of shares redeemed | | | (3,018,599,156 | ) | | | (2,521,704,235 | ) |
| | | | | | | | |
Change in RBC Investor Class | | $ | (929,557,046 | ) | | $ | 1,430,450,278 | |
| | | | | | | | |
RBC Reserve Class | | | | | | | | |
Proceeds from shares issued | | $ | — | | | $ | 1,465,090,862 | |
Distributions reinvested | | | — | | | | 172,787 | |
Cost of shares redeemed | | | — | | | | (5,146,926,740 | ) |
| | | | | | | | |
Change in RBC Reserve Class | | $ | — | | | $ | (3,681,663,091 | ) |
| | | | | | | | |
RBC Select Class | | | | | | | | |
Proceeds from shares issued | | $ | — | | | $ | 1,433,441,969 | |
Distributions reinvested | | | — | | | | 198,520 | |
Cost of shares redeemed | | | — | | | | (3,758,181,502 | ) |
| | | | | | | | |
Change in RBC Select Class | | $ | — | | | $ | (2,324,541,013 | ) |
| | | | | | | | |
| | |
Change in net assets resulting from capital transactions | | $ | 208,916,848 | | | $ | (3,879,266,644 | ) |
| | | | | | | | |
6. 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.
Fund Management has analyzed the Fund’s tax positions taken or expected to be taken on federal income tax returns for all open tax years (current and prior three tax years) and has concluded that no
|
NOTES TO FINANCIAL STATEMENTS |
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.
The tax character of distributions during the year ended September 30, 2017 were as follows:
| | | | | | | | | | | | |
| | Distributions Paid From | |
| | Ordinary Income | | | Total Taxable Distributions | | | Total Distributions Paid | |
U.S. Government Money Market Fund | | | $19,634,890 | | | | $19,634,890 | | | | $19,634,890 | |
The tax basis of components of accumulated earnings/(losses) and tax character of distributions are determined at fiscal year end, and will be included in the Annual Report dated September 30, 2018.
As of September 30, 2017, the Fund had a short-term capital loss carryforward of $225,445 available to offset future realized capital gains in accordance with the Regulated Investment Company Modernization Act of 2010. This capital loss carryforward is not subject to expiration and must first be utilized to offset future realized gains of the same character.
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 Fund did not have any deferred qualified late-year capital losses for the year ending September 30, 2017.
7. Line of Credit
The Fund, participates in an uncommitted, unsecured $500,000,000 line of credit with U.S. Bank N.A. (the “Bank”), the Fund’s custodian, to be used to fund shareholder redemption requests and for other short-term temporary or emergency general business purposes. The line of credit has a scheduled termination date of March 29, 2019. Interest is charged on borrowings under this line of credit at the Bank’s prime lending rate per annum. There were no loans outstanding pursuant to this line of credit at March 31, 2018. During the period ended March 31, 2018, the Fund did not utilize this line of credit.
8. Significant Risks
Shareholder concentration risk
As of March 31, 2018, an affiliated omnibus account owned 55.0% and an unaffiliated shareholder owned 12.5% of the Fund’s outstanding shares. Significant transactions by these shareholders may impact the Fund’s performance.
9. Subsequent Events:
Fund Management has evaluated the impact of all subsequent events on the Funds and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.
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SUPPLEMENTAL INFORMATION (UNAUDITED) |
Shareholder Expense Examples
As a shareholder of the the RBC Funds, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the RBC Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2017 through March 31, 2018.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
| | | | | | | | | | | | | | | | |
| | Beginning Account Value 10/1/17 | | | Ending Account Value 3/31/18 | | | Expenses Paid During Period* 10/1/17-3/31/18 | | | Annualized Expense Ratio During Period 10/1/17-3/31/18 | |
U.S. Government Money Market Fund | | | | | | | | | | | | | | | | |
RBC Institutional Class 1 | | | $1,000.00 | | | | $1,005.50 | | | | $0.95 | | | | 0.19% | |
RBC Institutional Class 2 | | | 1,000.00 | | | | 1,005.00 | | | | 1.45 | | | | 0.29% | |
RBC Investor Class | | | 1,000.00 | | | | 1,001.50 | | | | 4.99 | | | | 1.00% | |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 182/365 (to reflect one half year period).
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SUPPLEMENTAL INFORMATION (UNAUDITED) |
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.
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| | Beginning Account Value 10/1/17 | | | Ending Account Value 3/31/18 | | | Expenses Paid During Period* 10/1/17-3/31/18 | | | Annualized Expense Ratio During Period 10/1/17-3/31/18 | |
U.S. Government Money Market Fund | | | | | | | | | | | | | | | | |
RBC Institutional Class 1 | | | $1,000.00 | | | | $1,023.98 | | | | $0.96 | | | | 0.19% | |
RBC Institutional Class 2 | | | 1,000.00 | | | | 1,023.49 | | | | 1.46 | | | | 0.29% | |
RBC Investor Class | | | 1,000.00 | | | | 1,019.95 | | | | 5.04 | | | | 1.00% | |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 182/365 (to reflect one half year period).
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 March 31, 2018.
NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
RBC Global Asset Management (U.S.) Inc. serves as investment advisor for the RBC Funds.
RBC Funds are distributed by Quasar Distributors LLC.
![LOGO](https://capedge.com/proxy/N-CSRS/0001193125-18-183475/g538758dsp21.jpg)
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 SAR 03-18
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
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. |
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 last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
[Note that until the date that the registrant has filed its first report on Form N-PORT (17 CFR 270.150), the registrant’s disclosures required by this Item are limited to any change in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected or is reasonably likely to materially affect the registrant’s internal control over financial reporting.]
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
Item 13. Exhibits.
| (a)(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. |
[Note that until the date that the registrant has filed its first report on Form N-PORT (17 CFR 270.150), in the certification required by Item 13(a)(2), the registrant’s certifying officers must certify that they have disclosed in the report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting.]
| (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/ Kathleen A. Gorman
Kathleen A. Gorman, President and Chief Executive Officer
(principal executive officer)
Date May 25, 2018
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* /s/ Kathleen A. Gorman
Kathleen A. Gorman, President and Chief Executive Officer
(principal executive officer)
Date May 25, 2018
By (Signature and Title)* /s/ Kathleen A. Hegna
Kathleen A. Hegna, Treasurer and Chief Financial Officer
(principal financial officer)
Date May 25, 2018
* Print the name and title of each signing officer under his or her signature.