UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21475
RBC Funds Trust
(Exact name of registrant as specified in charter)
50 South Sixth Street, Suite 2350
Minneapolis, MN 55402
(Address of principal executive offices) (Zip code)
Tara Tilbury
50 South Sixth Street, Suite 2350
Minneapolis, MN 55402
(Name and address of agent for service)
Registrant’s telephone number, including area code: (612) 376-7132
Date of fiscal year end: March 31
Date of reporting period: September 30, 2021
Item 1. Reports to Stockholders.
(a) | The Report to Shareholders is attached herewith. |
RBC Global Asset Management Semi-Annual Report For the six months ended September 30, 2021 RBC Emerging Markets Equity Fund RBC Emerging Markets Value Equity Fund RBC Global Opportunities Fund RBC International Opportunities Fund
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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. |
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The RBC Funds compare their performance against various indices. Each of these indices is a widely recognized measure of return for the underlying category of securities. However, the indices are unmanaged, do not include fees, and cannot be invested in directly. |
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We hope the financial information presented will help you evaluate your investment in the RBC Funds. We also encourage you to read your Fund’s prospectus for further detail as to your Fund’s investment policies and risk profile. RBC Funds prospectuses and performance information subsequent to the date of this report are available on our website at www.rbcgam.com. |
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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.com; and (iii) on the Securities and Exchange Commission’s (the “Commission”) website at http://www.sec.gov. |
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Each year the Trust files its proxy voting record for the twelve-month period ended June 30 with the SEC on Form N-PX no later than August 31. The records can be obtained on the SEC’s website at www.sec.gov and without charge by calling the Funds at 1-800-422-2766. |
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A schedule of each Fund’s portfolio holdings is filed with the Commission for the first and third quarters of each fiscal year on Form N-PORT. This information is available on the Commission’s website at http://www.sec.gov and on the Funds’ website at www.rbcgam.com.
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Contents |
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Fund Statistics | ||||||||||||
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Financial Statements | ||||||||||||
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RBC Global Asset Management (U.S.) Inc. (“RBC GAM-US”) serves as the investment advisor and RBC Global Asset Management (UK) Limited (“RBC GAM-UK”) serves as the investment sub-advisor to the Funds and is responsible for the overall management of the Funds’ portfolios. The individual primarily responsible for the day-to-day management of each Fund’s portfolio is set forth below.
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Philippe Langham
Senior Portfolio Manager and Head of Emerging Market Equities
Philippe Langham is Head of Emerging Market Equities at RBC GAM-UK and is responsible for portfolio management of RBC Emerging Markets Equity Fund. Philippe joined RBC GAM-UK in November 2009 from Societe Generale Asset Management, where he was Head of Global Emerging Markets. He was previously Director and Head of Emerging Markets and Asia at Credit Suisse in Zurich. Prior to that, he managed Global Emerging Markets, Asian, Latin American and U.S. portfolios for nine years at the Kuwait Investment Office. Philippe holds a BSc in economics from the University of Manchester in England and is a Chartered Accountant.
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Laurence Bensafi
Senior Portfolio Manager and Deputy Head of Emerging Markets Equity
Laurence Bensafi is Deputy Head of Emerging Markets Equity at RBC GAM-UK and is responsible for portfolio management of RBC Emerging Markets Value Equity Fund. Prior to joining RBC GAM-UK in 2013, Laurence was the Head of Aviva Investors’ Emerging Markets team, where she was responsible for managing Global Emerging Markets income funds and for developing quantitative stock selection and analysis models. Laurence began her investment career as a Quantitative Analyst at Societe Generale Asset Management, supporting European and Global Equity portfolio management by developing quantitative models to assist in the portfolio construction and security selection process. In 1997, Laurence obtained a Magistere d’Economiste Statisticien & D.E.S.S. Statistique et Econometrie from Toulouse University in France. Laurence is a CFA charterholder.
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Habib Subjally
Senior Portfolio Manager and Head of Global Equities
Habib Subjally is Head of Global Equities at RBC GAM-UK and is responsible for portfolio management of RBC Global Opportunities Fund and RBC International Opportunities Fund. Prior to joining RBC GAM-UK in 2014 Habib and his team spent eight years together at First State managing global equities. Previously he was Head of Small & Mid Cap Research at Credit Suisse and Head of the Global equities team at Invesco. Habib began his fund management career at Merrill Lynch Investment Managers, where he was Head of North American and Global equities research. He holds a BSc (Hons) from the London School of Economics and holds Chartered Accountant and ASIP designations.
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1
1 Year | 3 Year | 5 Year | Since Inception(a) | Net Expense Ratio(b)(c) | Gross Expense Ratio(b)(c) | |||||||||||||||||||
Average Annual Total Returns as of September 30, 2021 (Unaudited) | ||||||||||||||||||||||||
RBC Emerging Markets Equity Fund | ||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||
- Including Max Sales Charge of 5.75% | 5.09% | 5.44% | 6.22% | 5.54% | ||||||||||||||||||||
- At Net Asset Value | 11.47% | 7.54% | 7.49% | 6.35% | 1.13% | 1.45% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
- At Net Asset Value | 11.77% | 7.78% | 7.74% | 6.60% | 0.88% | 0.99% | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||
- At Net Asset Value | 11.80% | 7.80% | 7.75% | 6.71% | 0.88% | 0.88% | ||||||||||||||||||
MSCI Emerging Markets | 18.20% | 8.58% | 9.23% | 5.53% | ||||||||||||||||||||
RBC Emerging Markets Value Equity Fund | ||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||
- At Net Asset Value | 32.16% | 9.82% | N/A | 4.30% | 0.95% | 1.97% | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||
- At Net Asset Value | 32.16% | 9.86% | N/A | 4.37% | 0.88% | 3.37% | ||||||||||||||||||
MSCI Emerging Markets | 18.20% | 8.58% | N/A | 5.07% | ||||||||||||||||||||
RBC Global Opportunities Fund | ||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||
- Including Max Sales Charge of 5.75% | 22.25% | 13.81% | 15.84% | 12.79% | ||||||||||||||||||||
- At Net Asset Value | 29.70% | 16.07% | 17.23% | 13.77% | 1.02% | 33.96% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
- At Net Asset Value | 30.01% | 16.36% | 17.48% | 13.97% | 0.77% | 0.99% | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||
- At Net Asset Value | 30.10% | 16.42% | 17.53% | 14.02% | 0.71% | 0.90% | ||||||||||||||||||
MSCI ACWI Net | ||||||||||||||||||||||||
Total Return USD Index(d) | 27.44% | 12.58% | 13.20% | 9.89% | ||||||||||||||||||||
RBC International Opportunities Fund | ||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||
- Including Max Sales Charge of 5.75% | 22.09% | 9.63% | 9.51% | 6.70% | ||||||||||||||||||||
- At Net Asset Value | 29.51% | 11.81% | 10.81% | 7.63% | 1.10% | 3.67% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
- At Net Asset Value | 29.93% | 12.47% | 11.29% | 8.01% | 0.81% | 1.11% | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||
- At Net Asset Value | 29.89% | 12.53% | 11.34% | 8.06% | 0.76% | 24.83% | ||||||||||||||||||
MSCI ACWI ex US Index(d) | 23.92% | 8.03% | 8.94% | 5.98% |
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.
2
PERFORMANCE SUMMARY (UNAUDITED)
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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.com. Please see footnotes below.
(a) | The since inception date (commencement of operations) is December 20, 2013 for RBC Emerging Markets Equity Fund for Class A and Class I shares and November 22, 2016 for Class R6 shares, February 9, 2018 for RBC Emerging Markets Value Equity Fund for Class I and Class R6 shares and December 3, 2014 for RBC Global Opportunities Fund and RBC International Opportunities Fund for Class I shares, November 22, 2016 for Class R6 shares and January 28, 2020 for Class A Shares. The performance in the table for Class R6 shares prior to November 22, 2016 reflects the performance of the Class I shares since the Fund’s inception, adjusted to reflect the fees and expenses of Class R6 shares. The performance in the table for Class A shares of Global Opportunities Fund and International Opportunities Fund prior to January 28, 2020, reflects the performance of Class I shares since the Fund’s inception, adjusted to reflect the fees and expenses of Class A shares. |
(b) | The Funds’ expenses reflect actual expenses for the most recent fiscal year ended March 31, 2021. |
(c) | The Advisor has contractually agreed to waive fees and/or make payments in order to keep total operating expenses of the Fund to the levels disclosed in the Funds’ prospectus until July 31, 2023 (September 30, 2023 for RBC Emerging Markets Equity Fund). |
(d) | Each of the comparative indices is a widely recognized market value weighted measure of the return of securities, but do not include sales fees or operating expenses. You cannot invest directly in indices. |
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PERFORMANCE SUMMARY (UNAUDITED)
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The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. It captures large and mid capitalization representation across emerging markets countries and covers approximately 85% of the free float-adjusted market capitalization in each country. The Net Index is net of any foreign withholding tax. You cannot invest directly in an index.
The MSCI ACWI ex USA Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets excluding the U.S. It captures large and mid capitalization representation across developed markets and emerging markets countries excluding the U.S. and covers approximately 85% the global investable equity opportunity set outside the U.S. The Net Index is net of any foreign withholding tax. You cannot invest directly in an index.
The MSCI ACWI Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity performance of developed and emerging markets. It captures large and mid capitalization representation across developed markets and emerging markets countries and covers approximately 85% of the global investable equity opportunity set. The Net Index is net of any foreign withholding tax. You cannot invest directly in an index.
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6
FUND STATISTICS (UNAUDITED)
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Long-term growth of capital.
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MSCI ACWI Net Total Return USD Index
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Asset Allocation as of 9/30/21 (% of Fund’s investments) & Top Five Industries (as of 9/30/21) (% of | |||||||||||||||||
*Includes U.S. dollar denominated cash equivalent investments representing 0.75% of investments.
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Microsoft Corp. | 5.71% | Blackstone, Inc. | 3.89 | % | Top Ten Holdings (excluding investment companies) (as of 9/30/21) (% of Fund’s net assets) | |||||||||||||
Alphabet, Inc. | 5.69% | Deutsche Post AG | 3.79 | % | ||||||||||||||
Roche Holding AG | 5.27% | SVB Financial Group | 3.70 | % | ||||||||||||||
Industria de Diseno Textil SA | 4.85% | Anheuser-Busch InBev NV | 3.64 | % | ||||||||||||||
UnitedHealth Group, Inc. | 4.10% | AIA Group Ltd. | 3.58 | % | ||||||||||||||
*A listing of all portfolio holdings can be found beginning on page 17
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The graph reflects an initial investment of $100,000 over the period from December 3, 2014 (commencement of operations) to September 30, 2021 and is based on Class I shares. The Fund’s total return includes reinvested dividends and capital gains. The Fund’s total return also includes operating expenses that reduce return while the total return of the index does not. The graph does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance of other classes will vary due to differences in fee structures.
| Growth of $100,000 Initial Investment Since Inception (12/3/14) |
7
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Shares | Value | |||||
Common Stocks — 97.75% | ||||||
Argentina — 0.93% | ||||||
14,900 | MercadoLibre, Inc.* | $ | 25,023,060 | |||
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Austria — 1.52% | ||||||
1,660,302 | Mondi Plc | 40,885,207 | ||||
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Brazil — 3.74% | ||||||
16,057,083 | B3 SA - Brasil Bolsa Balcao | 37,682,509 | ||||
8,298,806 | Banco Bradesco SA | 27,232,183 | ||||
8,361,730 | Raia Drogasil SA | 35,699,439 | ||||
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100,614,131 | ||||||
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Chile — 4.62% | ||||||
5,461,422 | Antofagasta Plc | 99,249,169 | ||||
7,176,404 | Falabella SA | 25,136,886 | ||||
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124,386,055 | ||||||
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China — 20.72% | ||||||
611,000 | Alibaba Group Holding Ltd., ADR* | 90,458,550 | ||||
10,935,245 | China Resources Land Ltd. | 46,022,648 | ||||
1,974,358 | LONGi Green Energy Technology Co. Ltd., Class A | 25,096,873 | ||||
6,349,786 | NARI Technology Co. Ltd., Class A | 35,070,030 | ||||
10,526,161 | Ping An Insurance Group Co. of China Ltd., Series H | 71,992,391 | ||||
2,534,013 | Shenzhen Inovance Technology Co. Ltd., Class A | 24,627,930 | ||||
2,425,263 | Sunny Optical Technology Group Co. Ltd. | 63,505,245 | ||||
2,212,981 | Tencent Holdings Ltd. | 132,112,218 | ||||
1,190,700 | Yum China Holdings, Inc. | 69,191,577 | ||||
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558,077,462 | ||||||
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Hong Kong — 5.51% | ||||||
6,737,190 | AIA Group Ltd. | 77,507,376 | ||||
1,155,771 | Hong Kong Exchanges & Clearing Ltd. | 71,022,719 | ||||
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148,530,095 | ||||||
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India — 16.51% | ||||||
1,289,580 | Dr Reddy’s Laboratories Ltd. | 84,596,619 | ||||
2,874,904 | HDFC Bank Ltd. | 61,460,441 | ||||
131,889 | Hero MotoCorp Ltd. | 5,029,507 | ||||
2,896,805 | Housing Development Finance Corp. Ltd. | 107,059,826 | ||||
5,792,326 | Mahindra & Mahindra Ltd. | 62,375,793 | ||||
2,451,587 | Tata Consultancy Services Ltd. | 124,242,163 | ||||
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444,764,349 | ||||||
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Indonesia — 3.02% | ||||||
18,612,324 | Bank Central Asia Tbk PT | 45,334,369 | ||||
360,518,417 | Kalbe Farma Tbk PT | 35,925,164 | ||||
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81,259,533 | ||||||
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9
SCHEDULE OF PORTFOLIO INVESTMENTS
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RBC Emerging Markets Equity Fund (cont.)
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September 30, 2021 (Unaudited) |
Shares | Value | |||||
Korea — 10.64% | ||||||
472,603 | LG Corp. | $ | 36,792,155 | |||
73,603 | NCSoft Corp. | 37,283,873 | ||||
251,474 | Samsung Fire & Marine Insurance Co. Ltd. | 49,690,256 | ||||
1,425,631 | Shinhan Financial Group Co. Ltd. | 48,157,226 | ||||
1,340,152 | SK Hynix, Inc. | 114,725,503 | ||||
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286,649,013 | ||||||
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Mexico — 2.58% | ||||||
801,800 | Fomento Economico Mexicano SAB de CV, ADR | 69,532,096 | ||||
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Peru — 1.05% | ||||||
255,760 | Credicorp Ltd. | 28,374,015 | ||||
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Philippines — 2.10% | ||||||
2,923,900 | SM Investments Corp. | 56,613,128 | ||||
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South Africa — 4.68% | ||||||
2,876,117 | Clicks Group Ltd. | 53,031,999 | ||||
3,805,633 | Discovery Ltd.* | 34,773,052 | ||||
231,997 | Naspers Ltd., N Shares | 38,344,411 | ||||
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126,149,462 | ||||||
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Taiwan — 14.95% | ||||||
2,391,752 | Advantech Co. Ltd. | 31,169,411 | ||||
1,129,903 | Delta Electronics, Inc. | 10,124,128 | ||||
24,413,941 | E.Sun Financial Holding Co. Ltd. | 22,973,869 | ||||
319,362 | Largan Precision Co. Ltd. | 24,881,530 | ||||
1,741,028 | MediaTek, Inc. | 56,039,324 | ||||
1,646,721 | President Chain Store Corp. | 16,525,019 | ||||
8,810,973 | Taiwan Semiconductor Manufacturing Co. Ltd. | 182,229,314 | ||||
24,058,186 | Uni-President Enterprises Corp. | 58,777,648 | ||||
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402,720,243 | ||||||
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Thailand — 0.76% | ||||||
5,289,700 | Kasikornbank Public Co. Ltd., NVDR | 20,608,448 | ||||
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Turkey — 1.38% | ||||||
32,089,247 | Enka Insaat ve Sanayi AS | 37,073,830 | ||||
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United Kingdom — 3.04% | ||||||
1,511,298 | Unilever Plc | 81,819,207 | ||||
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Total Common Stocks | 2,633,079,334 | |||||
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(Cost $2,468,640,381) |
10
SCHEDULE OF PORTFOLIO INVESTMENTS
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RBC Emerging Markets Equity Fund (cont.)
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September 30, 2021 (Unaudited) |
Shares | Value | |||||
Investment Company — 3.74% | ||||||
100,833,067 | U.S. Government Money Market Fund, RBC Institutional Class 1 (a) | $ | 100,833,067 | |||
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Total Investment Company | 100,833,067 | |||||
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(Cost $100,833,067) | ||||||
Total Investments | $ | 2,733,912,401 | ||||
(Cost $2,569,473,448)(b) — 101.49% | ||||||
Liabilities in excess of other assets — (1.49)% | (40,243,589 | ) | ||||
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NET ASSETS — 100.00% | $ | 2,693,668,812 | ||||
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* | Non-income producing security. |
(a) | Affiliated investment. |
(b) | See Notes to Schedules of Portfolio Investments for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Abbreviations used are defined below:
ADR - American Depositary Receipt
NVDR - Non-Voting Depository Receipt
Portfolio Diversification (Unaudited)
Percentage | ||
Industries | of Net Assets |
Financials | 26.13 | % | ||
Information Technology | 23.46 | % | ||
Consumer Discretionary | 11.72 | % | ||
Consumer Staples | 11.71 | % | ||
Industrials | 7.06 | % | ||
Communication Services | 6.29 | % | ||
Materials | 5.20 | % | ||
Health Care | 4.47 | % | ||
Real Estate | 1.71 | % | ||
Other* | 2.25 | % | ||
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100.00 | % | |||
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* | Includes cash, Investment Company, interest and dividend receivable, pending trades and Fund share transactions, and accrued expenses payable. |
See Notes to the Financial Statements.
11
SCHEDULE OF PORTFOLIO INVESTMENTS
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RBC Emerging Markets Value Equity Fund
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September 30, 2021 (Unaudited) |
Shares | Value | |||||
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Common Stocks — 95.91% | ||||||
Brazil — 3.17% | ||||||
181,200 | Banco do Brasil SA | $ | 964,936 | |||
135,600 | Hypera SA | 796,556 | ||||
130,187 | Sul America SA | 614,388 | ||||
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2,375,880 | ||||||
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Chile — 2.28% | ||||||
58,478 | Antofagasta Plc | 1,062,708 | ||||
183,630 | Falabella SA | 643,203 | ||||
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1,705,911 | ||||||
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China — 24.27% | ||||||
20,300 | Alibaba Group Holding Ltd., ADR* | 3,005,415 | ||||
7,400 | Baidu, Inc., ADR* | 1,137,750 | ||||
544,000 | Chinasoft International Ltd. | 960,771 | ||||
818,000 | CIMC Enric Holdings Ltd. | 976,128 | ||||
588,000 | CSPC Pharmaceutical Group Ltd. | 701,694 | ||||
11,900 | Daqo New Energy Corp., ADR* | 678,300 | ||||
88,800 | Gree Electric Appliances, Inc. of Zhuhai, Class A | 530,242 | ||||
634,500 | KWG Group Holdings Ltd. | 618,837 | ||||
563,000 | Lee & Man Paper Manufacturing Ltd. | 411,509 | ||||
255,734 | Longshine Technology Group Co. Ltd., Class A | 1,018,250 | ||||
9,800 | NetEase, Inc., ADR | 836,920 | ||||
704,000 | Nexteer Automotive Group Ltd. | 719,586 | ||||
635,393 | Ping An Bank Co. Ltd., Class A | 1,754,205 | ||||
252,499 | Ping An Insurance Group Co. of China Ltd., Series H | 1,726,936 | ||||
347,000 | Shimao Group Holdings Ltd. | 635,986 | ||||
176,794 | Sieyuan Electric Co. Ltd., Class A | 1,078,967 | ||||
127,000 | SITC International Holdings Co. Ltd. | 451,915 | ||||
1,062,200 | Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H | 946,523 | ||||
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18,189,934 | ||||||
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Egypt — 1.24% | ||||||
348,019 | Commercial International Bank Egypt SAE, GDR* | 929,406 | ||||
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Greece — 0.77% | ||||||
459,034 | Alpha Services and Holdings SA* | 575,862 | ||||
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Hong Kong — 2.21% | ||||||
2,242,000 | Pacific Basin Shipping Ltd. | 1,037,682 | ||||
207,000 | Xinyi Glass Holdings Ltd. | 617,492 | ||||
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1,655,174 | ||||||
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12
SCHEDULE OF PORTFOLIO INVESTMENTS
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RBC Emerging Markets Value Equity Fund (cont.)
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September 30, 2021 (Unaudited) |
Shares | Value | |||||
Hungary — 1.97% | ||||||
74,409 | MOL Hungarian Oil & Gas Plc | $ | 618,177 | |||
14,706 | OTP Bank Nyrt* | 860,494 | ||||
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1,478,671 | ||||||
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India — 9.12% | ||||||
213,344 | Apollo Tyres Ltd. | 644,597 | ||||
93,300 | Axis Bank Ltd.* | 956,500 | ||||
204,797 | Hindalco Industries Ltd. | 1,340,517 | ||||
234,168 | Indiabulls Housing Finance Ltd. | 723,665 | ||||
135,801 | KEC International Ltd. | 808,399 | ||||
61,041 | Mahindra & Mahindra Ltd. | 657,332 | ||||
442,534 | Redington India Ltd. | 828,296 | ||||
50,610 | Shriram Transport Finance Co. Ltd. | 880,301 | ||||
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6,839,607 | ||||||
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Indonesia — 1.28% | ||||||
2,586,700 | Bank Negara Indonesia Persero Tbk PT | 962,990 | ||||
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Korea — 15.14% | ||||||
4,252 | Com2uSCorp | 351,701 | ||||
16,282 | DB Insurance Co. Ltd. | 871,147 | ||||
6,180 | E-MART, Inc. | 850,767 | ||||
25,004 | Fila Holdings Corp. | 891,533 | ||||
29,924 | Hana Financial Group, Inc. | 1,163,201 | ||||
6,230 | Hyundai Motor Co. | 1,037,080 | ||||
14,065 | LG Corp. | 1,094,960 | ||||
20,203 | Mando Corp.* | 959,907 | ||||
46,761 | Samsung Electronics Co. Ltd. | 2,898,929 | ||||
6,279 | SK Hynix, Inc. | 537,522 | ||||
4,932 | SKC Co. Ltd. | 689,679 | ||||
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11,346,426 | ||||||
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Mexico — 3.85% | ||||||
105,000 | Cemex SAB de CV, ADR* | 752,850 | ||||
1,268,114 | Gentera SAB de CV* | 735,379 | ||||
366,100 | PLA Administradora Industrial S de RL de CV, REIT | 534,921 | ||||
150,800 | Regional SAB de CV | 862,946 | ||||
|
| |||||
2,886,096 | ||||||
|
| |||||
Pakistan — 0.77% | ||||||
896,885 | Habib Bank Ltd. | 575,825 | ||||
|
| |||||
Peru — 0.98% | ||||||
6,600 | Credicorp Ltd. | 732,204 | ||||
|
| |||||
Philippines — 0.75% | ||||||
272,830 | Security Bank Corp. | 564,964 | ||||
|
|
13
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Emerging Markets Value Equity Fund (cont.)
|
September 30, 2021 (Unaudited) |
Shares | Value | |||||
Russia — 5.75% | ||||||
8,796 | LUKOIL PJSC, ADR | $ | 835,394 | |||
2,342,100 | Sistema PJSFC | 863,389 | ||||
957,770 | United Co. RUSAL International PJSC* | 917,635 | ||||
414,100 | VEON Ltd., ADR* | 861,328 | ||||
25,886 | X5 Retail Group NV, GDR | 836,074 | ||||
|
| |||||
4,313,820 | ||||||
|
| |||||
South Africa — 6.33% | ||||||
1,019,939 | Growthpoint Properties Ltd., REIT | 968,993 | ||||
133,525 | Imperial Logistics Ltd. | 546,192 | ||||
1,822,126 | KAP Industrial Holdings Ltd. | 586,329 | ||||
45,132 | Mr Price Group Ltd. | 605,479 | ||||
125,667 | MTN Group Ltd.* | 1,180,346 | ||||
5,170 | Naspers Ltd., N Shares | 854,496 | ||||
|
| |||||
4,741,835 | ||||||
|
| |||||
Taiwan — 9.43% | ||||||
65,422 | Chailease Holding Co. Ltd. | 574,542 | ||||
110,979 | Innodisk Corp. | 718,107 | ||||
44,850 | Lotes Co. Ltd. | 887,303 | ||||
26,000 | MediaTek, Inc. | 836,875 | ||||
62,000 | Merida Industry Co. Ltd. | 648,058 | ||||
223,000 | Primax Electronics Ltd. | 406,984 | ||||
145,000 | Taiwan Semiconductor Manufacturing Co. Ltd. | 2,998,903 | ||||
|
| |||||
7,070,772 | ||||||
|
| |||||
Thailand — 1.01% | ||||||
194,400 | Kasikornbank Pcl | 757,374 | ||||
|
| |||||
Turkey — 0.71% | ||||||
207,758 | KOC Holding AS | 528,829 | ||||
|
| |||||
United Arab Emirates — 0.97% | ||||||
654,791 | Aldar Properties PJSC | 723,760 | ||||
|
| |||||
United States — 1.62% | ||||||
565,200 | Samsonite International SA*,(a) | 1,213,768 | ||||
|
| |||||
Vietnam — 2.29% | ||||||
394,681 | Hoa Phat Group JSC | 912,577 | ||||
234,650 | Vinhomes JSC(a) | 807,186 | ||||
|
| |||||
1,719,763 | ||||||
|
| |||||
Total Common Stocks | 71,888,871 | |||||
|
| |||||
(Cost $69,193,597) |
14
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Emerging Markets Value Equity Fund (cont.)
|
September 30, 2021 (Unaudited) |
Shares | Value | |||||
Preferred Stocks — 2.95% | ||||||
Brazil — 1.91% | ||||||
105,300 | Centrais Eletricas Brasileiras SA, Class B | $ | 749,857 | |||
137,200 | Petroleo Brasileiro SA | 685,276 | ||||
|
| |||||
1,435,133 | ||||||
|
| |||||
Colombia — 1.04% | ||||||
88,974 | Banco Davivienda SA | 780,432 | ||||
|
| |||||
Total Preferred Stocks | 2,215,565 | |||||
|
| |||||
(Cost $2,096,878) | ||||||
Investment Company — 1.73% | ||||||
1,295,452 | U.S. Government Money Market Fund, RBC Institutional Class 1 (b) | 1,295,452 | ||||
|
| |||||
Total Investment Company | 1,295,452 | |||||
|
| |||||
(Cost $1,295,452) | ||||||
Total Investments (Cost $72,585,927)(c) — 100.59% | $ | 75,399,888 | ||||
Liabilities in excess of other assets — (0.59)% | (445,138) | |||||
|
| |||||
NET ASSETS — 100.00% | $ | 74,954,750 | ||||
|
|
* | Non-income producing security. |
(a) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(b) | Affiliated investment. |
(c) | See Notes to Schedules of Portfolio Investments for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Abbreviations used are defined below:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
REIT - Real Estate Investment Trust
15
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Emerging Markets Value Equity Fund (cont.)
|
September 30, 2021 (Unaudited) |
Portfolio Diversification (Unaudited) | ||
Industries | Percentage of Net Assets |
Financials | 24.77 | % | ||
Information Technology | 18.16 | % | ||
Consumer Discretionary | 16.56 | % | ||
Industrials | 11.57 | % | ||
Materials | 8.12 | % | ||
Communication Services | 5.86 | % | ||
Real Estate | 5.72 | % | ||
Energy | 2.85 | % | ||
Consumer Staples | 2.25 | % | ||
Health Care | 2.00 | % | ||
Utilities | 1.00 | % | ||
Other* | 1.14 | % | ||
|
| |||
100.00 | % | |||
|
|
* | Includes cash, Investment Company, interest and dividend receivable, pending trades and Fund share transactions, and accrued expenses payable. |
See Notes to the Financial Statements.
16
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Global Opportunities Fund
|
September 30, 2021 (Unaudited) |
Shares | Value | |||||
Common Stocks — 99.20% | ||||||
Argentina — 1.19% | ||||||
3,600 | MercadoLibre, Inc.* | $ | 6,045,840 | |||
|
| |||||
Belgium — 3.64% | ||||||
324,650 | Anheuser-Busch InBev NV | 18,413,308 | ||||
|
| |||||
China — 0.91% | ||||||
57,636 | Prosus NV | 4,613,247 | ||||
|
| |||||
Denmark — 2.46% | ||||||
94,563 | Orsted A/S(a) | 12,464,789 | ||||
|
| |||||
Finland — 2.85% | ||||||
255,399 | Neste Oyj | 14,407,657 | ||||
|
| |||||
Germany — 3.79% | ||||||
306,329 | Deutsche Post AG | 19,209,835 | ||||
|
| |||||
Hong Kong — 3.58% | ||||||
1,575,894 | AIA Group Ltd. | 18,129,726 | ||||
|
| |||||
Ireland — 2.09% | ||||||
78,953 | Kerry Group Plc, Class A | 10,607,169 | ||||
|
| |||||
Japan — 3.42% | ||||||
124,298 | MISUMI Group, Inc. | 5,288,765 | ||||
108,894 | Nidec Corp. | 12,004,475 | ||||
|
| |||||
17,293,240 | ||||||
|
| |||||
Netherlands — 1.45% | ||||||
2,631 | Adyen NV*,(a) | 7,354,602 | ||||
|
| |||||
South Africa — 0.45% | ||||||
13,795 | Naspers Ltd., N Shares | 2,280,034 | ||||
|
| |||||
Spain — 4.85% | ||||||
667,021 | Industria de Diseno Textil SA | 24,543,536 | ||||
|
| |||||
Switzerland — 5.27% | ||||||
73,097 | Roche Holding AG | 26,678,210 | ||||
|
| |||||
Taiwan — 2.60% | ||||||
118,000 | Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 13,174,700 | ||||
|
|
17
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Global Opportunities Fund (cont.)
|
September 30, 2021 (Unaudited) |
Shares | Value | |||||
United Kingdom — 4.40% | ||||||
72,271 | Croda International Plc | $ | 8,280,607 | |||
144,938 | InterContinental Hotels Group Plc* | 9,254,515 | ||||
236,481 | St. James’s Place Plc | 4,770,368 | ||||
|
| |||||
22,305,490 | ||||||
|
| |||||
United States — 56.25% | ||||||
10,778 | Alphabet, Inc., Class A* | 28,815,199 | ||||
4,830 | Amazon.com, Inc.* | 15,866,743 | ||||
169,300 | Blackstone, Inc. | 19,696,362 | ||||
58,800 | Danaher Corp. | 17,901,072 | ||||
82,200 | Ecolab, Inc. | 17,148,564 | ||||
45,012 | Estee Lauder Cos, Inc. (The), Class A | 13,500,449 | ||||
61,000 | First Republic Bank | 11,765,680 | ||||
256,650 | Fortive Corp. | 18,111,790 | ||||
57,300 | Incyte Corp.* | 3,941,094 | ||||
71,600 | JPMorgan Chase & Co. | 11,720,204 | ||||
17,700 | MarketAxess Holdings, Inc. | 7,446,213 | ||||
102,600 | Microsoft Corp. | 28,924,992 | ||||
58,400 | NVIDIA Corp. | 12,098,144 | ||||
29,000 | SVB Financial Group* | 18,759,520 | ||||
235,600 | TJX Cos, Inc. (The) | 15,544,888 | ||||
90,600 | T-Mobile US, Inc.* | 11,575,056 | ||||
14,300 | Twilio, Inc., Class A* | 4,562,415 | ||||
53,200 | UnitedHealth Group, Inc. | 20,787,368 | ||||
26,800 | Workday, Inc., Class A* | 6,697,052 | ||||
|
| |||||
284,862,805 | ||||||
|
| |||||
Total Common Stocks | 502,384,188 | |||||
|
| |||||
(Cost $466,105,894) | ||||||
Investment Company — 0.75% | ||||||
3,804,976 | U.S. Government Money Market Fund, RBC Institutional Class 1 (b) | 3,804,976 | ||||
|
| |||||
Total Investment Company | 3,804,976 | |||||
|
| |||||
(Cost $3,804,976) | ||||||
Total Investments | $ | 506,189,164 | ||||
(Cost $469,910,870)(c) — 99.95% | ||||||
Other assets in excess of liabilities — 0.05% | 264,492 | |||||
|
| |||||
NET ASSETS — 100.00% | $ | 506,453,656 | ||||
|
|
18
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Global Opportunities Fund (cont.)
|
September 30, 2021 (Unaudited) |
* | Non-income producing security. |
(a) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(b) | Affiliated investment. |
(c) | See Notes to Schedules of Portfolio Investments for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Abbreviations used are defined below:
ADR - American Depositary Receipt
Portfolio Diversification (Unaudited)
Industries | Percentage of Net Assets |
Financials | 18.22 | % | ||
Consumer Discretionary | 15.43 | % | ||
Information Technology | 14.38 | % | ||
Health Care | 13.69 | % | ||
Industrials | 10.78 | % | ||
Consumer Staples | 8.40 | % | ||
Communication Services | 7.98 | % | ||
Materials | 5.02 | % | ||
Energy | 2.84 | % | ||
Utilities | 2.46 | % | ||
Other* | 0.80 | % | ||
|
| |||
100.00 | % | |||
|
|
* | Includes cash, Investment Company, interest and dividend receivable, pending trades and Fund share transactions, and accrued expenses payable. |
See Notes to the Financial Statements.
19
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC International Opportunities Fund
|
September 30, 2021 (Unaudited) |
Shares | Value | |||||
Common Stocks — 99.34% | ||||||
Argentina — 2.15% | ||||||
2,300 | MercadoLibre, Inc.* | $ | 3,862,620 | |||
|
| |||||
Australia — 1.29% | ||||||
35,505 | Rio Tinto Plc | 2,327,428 | ||||
|
| |||||
Austria — 1.18% | ||||||
48,508 | Erste Group Bank AG | 2,129,948 | ||||
|
| |||||
Belgium — 3.55% | ||||||
79,636 | Anheuser-Busch InBev NV | 4,516,748 | ||||
31,555 | Umicore SA | 1,866,782 | ||||
|
| |||||
6,383,530 | ||||||
|
| |||||
Denmark — 3.23% | ||||||
44,110 | Orsted A/S(a) | 5,814,344 | ||||
|
| |||||
Finland — 3.37% | ||||||
107,651 | Neste Oyj | 6,072,846 | ||||
|
| |||||
Germany — 4.25% | ||||||
122,016 | Deutsche Post AG | 7,651,601 | ||||
|
| |||||
Hong Kong — 4.66% | ||||||
728,800 | AIA Group Ltd. | 8,384,412 | ||||
|
| |||||
India — 4.78% | ||||||
117,766 | HDFC Bank Ltd., ADR | 8,607,517 | ||||
|
| |||||
Ireland — 2.31% | ||||||
30,492 | Kerry Group Plc, Class A | 4,096,536 | ||||
420 | Kerry Group Plc, Class A | 56,227 | ||||
|
| |||||
4,152,763 | ||||||
|
| |||||
Japan — 15.01% | ||||||
297,600 | Astellas Pharma, Inc. | 4,898,215 | ||||
108,800 | MISUMI Group, Inc. | 4,629,339 | ||||
87,702 | Nidec Corp. | 9,668,269 | ||||
24,700 | Oriental Land Co. Ltd | 3,995,862 | ||||
62,600 | Recruit Holdings Co. Ltd. | 3,826,479 | ||||
|
| |||||
27,018,164 | ||||||
|
| |||||
Netherlands — 4.52% | ||||||
1,439 | Adyen NV*,(a) | 4,022,529 |
20
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC International Opportunities Fund (cont.)
|
September 30, 2021 (Unaudited) |
Shares | Value | |||||
36,572 | Koninklijke Philips NV | $ | 1,624,781 | |||
23,539 | Wolters Kluwer NV | 2,495,052 | ||||
|
| |||||
8,142,362 | ||||||
|
| |||||
Norway — 1.52% | ||||||
107,458 | Equinor ASA | 2,732,744 | ||||
|
| |||||
Singapore — 3.17% | ||||||
257,390 | DBS Group Holdings Ltd. | 5,703,407 | ||||
|
| |||||
South Africa — 4.16% | ||||||
45,321 | Naspers Ltd., N Shares | 7,490,644 | ||||
|
| |||||
Spain — 4.47% | ||||||
218,797 | Industria de Diseno Textil SA | 8,050,799 | ||||
|
| |||||
Sweden — 0.94% | ||||||
54,216 | Essity AB, Class B | 1,681,454 | ||||
|
| |||||
Switzerland — 9.43% | ||||||
4,954 | Partners Group Holding AG | 7,731,408 | ||||
25,302 | Roche Holding AG | 9,234,470 | ||||
|
| |||||
16,965,878 | ||||||
|
| |||||
Taiwan — 8.73% | ||||||
6,023,797 | E.Sun Financial Holding Co. Ltd. | 5,668,479 | ||||
89,918 | Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 10,039,345 | ||||
|
| |||||
15,707,824 | ||||||
|
| |||||
Thailand — 1.51% | ||||||
2,939,400 | Minor International Public Co. Ltd.* | 2,723,889 | ||||
|
| |||||
United Kingdom — 13.80% | ||||||
61,436 | Croda International Plc | 7,039,164 | ||||
87,279 | InterContinental Hotels Group Plc* | 5,572,899 | ||||
493,661 | Legal & General Group Plc | 1,854,728 | ||||
13,242 | Linde Plc | 3,894,189 | ||||
320,978 | St. James’s Place Plc | 6,474,867 | ||||
|
| |||||
24,835,847 | ||||||
|
| |||||
Zambia — 1.31% | ||||||
127,071 | First Quantum Minerals Ltd. | 2,352,609 | ||||
|
| |||||
Total Common Stocks | 178,792,630 | |||||
|
| |||||
(Cost $135,612,655) |
21
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC International Opportunities Fund (cont.)
|
September 30, 2021 (Unaudited) |
Shares | Value | |||||
Rights/Warrants — 0.02% | ||||||
Thailand — 0.02% | ||||||
96,914 | Minor International Public Co. Ltd., Warrants Expire 12/31/23* | $ | 13,749 | |||
87,828 | Minor International Public Co. Ltd., Warrants Expire 12/31/24* | 10,383 | ||||
|
| |||||
Total Rights/Warrants | 24,132 | |||||
|
| |||||
(Cost $0) | ||||||
Investment Company — 1.10% | ||||||
1,978,377 | U.S. Government Money Market Fund, RBC Institutional Class 1 (b) | 1,978,377 | ||||
|
| |||||
Total Investment Company | 1,978,377 | |||||
|
| |||||
(Cost $1,978,377) | ||||||
Total Investments | $ | 180,795,139 | ||||
(Cost $137,591,032)(c) — 100.46% | ||||||
Liabilities in excess of other assets — (0.46)% | (819,908 | ) | ||||
|
| |||||
NET ASSETS — 100.00% | $ | 179,975,231 | ||||
|
|
* | Non-income producing security. |
(a) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(b) | Affiliated investment. |
(c) | See Notes to Schedules of Portfolio Investments for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Abbreviations used are defined below:
ADR - American Depositary Receipt
22
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC International Opportunities Fund (cont.)
|
September 30, 2021 (Unaudited) |
Portfolio Diversification (Unaudited)
Industries | Percentage of Net Assets |
Financials | 25.87 | % | ||
Consumer Discretionary | 17.61 | % | ||
Industrials | 15.71 | % | ||
Materials | 9.71 | % | ||
Health Care | 8.76 | % | ||
Information Technology | 7.82 | % | ||
Consumer Staples | 5.75 | % | ||
Energy | 4.89 | % | ||
Utilities | 3.23 | % | ||
Other* | 0.65 | % | ||
|
| |||
100.00 | % | |||
|
|
* | Includes cash, Investment Company, interest and dividend receivable, pending trades and Fund share transactions, warrants, and accrued expenses payable. |
See Notes to the Financial Statements.
23
RBC Emerging Markets Equity Fund | RBC Emerging Markets Value Equity Fund | |||||||||||||||
Assets: | ||||||||||||||||
Investments in securities, at value: | ||||||||||||||||
Unaffiliated investments (cost $2,468,640,381 and $71,290,475, respectively) | $ | 2,633,079,334 | $ | 74,104,436 | ||||||||||||
Affiliated investments (cost $100,833,067 and $1,295,452, respectively) | 100,833,067 | 1,295,452 | ||||||||||||||
Foreign currency, at value (cost $3,512,140 and $26,637, respectively) | 3,503,351 | 26,628 | ||||||||||||||
Interest and dividend receivable | 6,838,880 | 173,115 | ||||||||||||||
Receivable for capital shares issued | 4,223,343 | 25 | ||||||||||||||
Receivable for investments sold | 8,574,984 | 389,737 | ||||||||||||||
Prepaid expenses and other assets | 102,669 | 15,154 | ||||||||||||||
|
|
|
| |||||||||||||
Total Assets | 2,757,155,628 | 76,004,547 | ||||||||||||||
|
|
|
| |||||||||||||
Liabilities: | ||||||||||||||||
Foreign withholding tax payable | 15,550,490 | 253,928 | ||||||||||||||
Payable for capital shares redeemed | 34,424,695 | — | ||||||||||||||
Payable for investments purchased | 11,407,835 | 731,480 | ||||||||||||||
Accrued expenses and other payables: | ||||||||||||||||
Investment advisory fees | 1,514,544 | 32,964 | ||||||||||||||
Accounting fees | 29,746 | 7,705 | ||||||||||||||
Audit fees | 10,591 | 10,591 | ||||||||||||||
Distribution fees | 164,854 | — | ||||||||||||||
Custodian fees | 78,114 | — | ||||||||||||||
Shareholder reports | 24,560 | 2,972 | ||||||||||||||
Transfer agent fees | 247,431 | 8,687 | ||||||||||||||
Other | 33,956 | 1,470 | ||||||||||||||
|
|
|
| |||||||||||||
Total Liabilities | 63,486,816 | 1,049,797 | ||||||||||||||
|
|
|
| |||||||||||||
Net Assets | $ | 2,693,668,812 | $ | 74,954,750 | ||||||||||||
|
|
|
| |||||||||||||
Net Assets Consists of: | ||||||||||||||||
Capital | $ | 2,491,439,931 | $ | 67,487,280 | ||||||||||||
Accumulated earnings | 202,228,881 | 7,467,470 | ||||||||||||||
|
|
|
| |||||||||||||
Net Assets | $ | 2,693,668,812 | $ | 74,954,750 | ||||||||||||
|
|
|
|
24
FINANCIAL STATEMENTS
|
Statements of Assets and Liabilities (cont.)
|
September 30, 2021 (Unaudited) |
RBC Emerging Markets Equity Fund | RBC Emerging Markets Value Equity Fund | |||||||||||||||
Net Assets | ||||||||||||||||
Class A | $ | 274,057,566 | $ | N/A | ||||||||||||
Class I | 2,167,064,804 | 65,433,921 | ||||||||||||||
Class R6 | 252,546,442 | 9,520,829 | ||||||||||||||
|
|
|
| |||||||||||||
Total | $ | 2,693,668,812 | $ | 74,954,750 | ||||||||||||
|
|
|
| |||||||||||||
Shares Outstanding (Unlimited number of shares authorized, no par value): | ||||||||||||||||
Class A | 20,345,662 | N/A | ||||||||||||||
Class I | 157,849,538 | 6,000,131 | ||||||||||||||
Class R6 | 18,309,126 | 898,860 | ||||||||||||||
|
|
|
| |||||||||||||
Total | 196,504,326 | 6,898,991 | ||||||||||||||
|
|
|
| |||||||||||||
Net Asset Values and Redemption Prices Per Share: | ||||||||||||||||
Class A | $ | 13.47 | $ | N/A | ||||||||||||
|
|
|
| |||||||||||||
Class I | $ | 13.73 | $ | 10.91 | ||||||||||||
|
|
|
| |||||||||||||
Class R6 | $ | 13.79 | $ | 10.59 | ||||||||||||
|
|
|
| |||||||||||||
Maximum Offering Price Per Share: | ||||||||||||||||
Class A | $ | 14.29 | $ | N/A | ||||||||||||
|
|
|
| |||||||||||||
Maximum Sales Charge - Class A | 5.75 | % | N/A | |||||||||||||
|
|
|
|
25
FINANCIAL STATEMENTS
|
Statements of Assets and Liabilities (cont.)
|
September 30, 2021 (Unaudited) |
RBC Global Opportunities Fund | RBC International Opportunities Fund | |||||||||||||||
Assets: | ||||||||||||||||
Investments in securities, at value: | ||||||||||||||||
Unaffiliated investments (cost $466,105,894 and $135,612,655, respectively) | $ | 502,384,188 | $ | 178,816,762 | ||||||||||||
Affiliated investments (cost $3,804,976 and $1,978,377, respectively) | 3,804,976 | 1,978,377 | ||||||||||||||
Foreign currency, at value (cost $29 and $0, respectively) | 28 | — | ||||||||||||||
Interest and dividend receivable | 366,761 | 578,253 | ||||||||||||||
Receivable for capital shares issued | 197,200 | 121,533 | ||||||||||||||
Receivable for investments sold | 24,569 | 2,280,620 | ||||||||||||||
Prepaid expenses and other assets | 11,903 | 12,243 | ||||||||||||||
|
|
|
| |||||||||||||
Total Assets | 506,789,625 | 183,787,788 | ||||||||||||||
|
|
|
| |||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency overdraft, at value (cost $0 and $25,707) | — | 25,605 | ||||||||||||||
Cash overdraft | 50 | 43 | ||||||||||||||
Foreign withholding tax payable | 2,307 | — | ||||||||||||||
Income tax payable | — | 118 | ||||||||||||||
Payable for capital shares redeemed | 15,481 | 3,552,812 | ||||||||||||||
Accrued expenses and other payables: | ||||||||||||||||
Investment advisory fees | 267,653 | 86,362 | ||||||||||||||
Accounting fees | 11,036 | 8,623 | ||||||||||||||
Audit fees | 14,602 | 14,602 | ||||||||||||||
Distribution fees | 50 | 59 | ||||||||||||||
Custodian fees | 1,681 | 16,453 | ||||||||||||||
Shareholder reports | 4,212 | 5,215 | ||||||||||||||
Transfer agent fees | 11,898 | 88,294 | ||||||||||||||
Other | 6,999 | 14,371 | ||||||||||||||
|
|
|
| |||||||||||||
Total Liabilities | 335,969 | 3,812,557 | ||||||||||||||
|
|
|
| |||||||||||||
Net Assets | $ | 506,453,656 | $ | 179,975,231 | ||||||||||||
|
|
|
| |||||||||||||
Net Assets Consists of: | ||||||||||||||||
Capital | $ | 446,570,703 | $ | 133,211,662 | ||||||||||||
Accumulated earnings | 59,882,953 | 46,763,569 | ||||||||||||||
|
|
|
| |||||||||||||
Net Assets | $ | 506,453,656 | $ | 179,975,231 | ||||||||||||
|
|
|
|
26
FINANCIAL STATEMENTS
|
Statements of Assets and Liabilities (cont.)
|
September 30, 2021 (Unaudited) |
RBC Global Opportunities Fund | RBC International Opportunities Fund | |||||||||||||||
Net Assets | ||||||||||||||||
Class A | $ | 14,077 | $ | 33,261 | ||||||||||||
Class I | 247,574,319 | 179,923,688 | ||||||||||||||
Class R6 | 258,865,260 | 18,282 | ||||||||||||||
|
|
|
| |||||||||||||
Total | $ | 506,453,656 | $ | 179,975,231 | ||||||||||||
|
|
|
| |||||||||||||
Shares Outstanding (Unlimited number of shares authorized, no par value): | ||||||||||||||||
Class A | 669 | 2,491 | ||||||||||||||
Class I | 11,738,514 | 13,402,586 | ||||||||||||||
Class R6 | 12,232,433 | 1,354 | ||||||||||||||
|
|
|
| |||||||||||||
Total | 23,971,616 | 13,406,431 | ||||||||||||||
|
|
|
| |||||||||||||
Net Asset Values and Redemption Prices Per Share: | ||||||||||||||||
Class A | $ | 21.05 | (a) | $ | 13.35 | |||||||||||
|
|
|
| |||||||||||||
Class I | $ | 21.09 | $ | 13.42 | ||||||||||||
|
|
|
| |||||||||||||
Class R6 | $ | 21.16 | $ | 13.51 | (b) | |||||||||||
|
|
|
| |||||||||||||
Maximum Offering Price Per Share: | ||||||||||||||||
Class A | $ | 22.33 | $ | 14.16 | ||||||||||||
|
|
|
| |||||||||||||
Maximum Sales Charge - Class A | 5.75 | % | 5.75 | % | ||||||||||||
|
|
|
|
(a) | Net asset value is calculated using unrounded net assets of $14,076.72 divided by the unrounded shares outstanding of 668.76. |
(b) | Net asset value is calculated using unrounded net assets of $18,281.71 divided by the unrounded shares outstanding of 1,353.65. |
See Notes to the Financial Statements.
27
For the Six Months Ended September 30, 2021 (Unaudited) |
| |||||||||||||||
RBC Emerging Markets Equity Fund | RBC Emerging Markets Value Equity Fund | |||||||||||||||
Investment Income: | ||||||||||||||||
Interest income | $ | 240 | $ | — | ||||||||||||
Dividend income - unaffiliated | 36,752,320 | 1,261,272 | ||||||||||||||
Dividend income - affiliated | 6,331 | 153 | ||||||||||||||
Foreign tax withholding | (4,401,989 | ) | (111,080 | ) | ||||||||||||
|
|
|
| |||||||||||||
Total Investment Income | 32,356,902 | 1,150,345 | ||||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 11,059,884 | 271,948 | ||||||||||||||
Distribution fees–Class A | 358,403 | — | ||||||||||||||
Accounting fees | 106,916 | 37,858 | ||||||||||||||
Audit fees | 17,752 | 17,752 | ||||||||||||||
Custodian fees | 501,836 | 39,909 | ||||||||||||||
Insurance fees | 4,765 | 1,786 | ||||||||||||||
Legal fees | 43,222 | 285 | ||||||||||||||
Registrations and filing fees | 51,278 | 19,658 | ||||||||||||||
Shareholder reports | 47,588 | 9,237 | ||||||||||||||
Transfer agent fees–Class A | 631,087 | — | ||||||||||||||
Transfer agent fees–Class I | 1,114,278 | 24,478 | ||||||||||||||
Transfer agent fees–Class R6 | 2,142 | 1,774 | ||||||||||||||
Trustees’ fees and expenses | 35,306 | 658 | ||||||||||||||
Tax expense | 24,947 | 13,064 | ||||||||||||||
Recoupment of past fees waived/reimbursed | 31,403 | — | ||||||||||||||
Other fees | 18,579 | 2,076 | ||||||||||||||
|
|
|
| |||||||||||||
Total expenses before fee waiver/reimbursement | 14,049,386 | 440,483 | ||||||||||||||
Expenses waived/reimbursed by: | ||||||||||||||||
Advisor | (1,525,110 | ) | (120,891 | ) | ||||||||||||
|
|
|
| |||||||||||||
Net expenses | 12,524,276 | 319,592 | ||||||||||||||
|
|
|
| |||||||||||||
Net Investment Income | 19,832,626 | 830,753 | ||||||||||||||
|
|
|
| |||||||||||||
Realized/Unrealized Gains/(Losses): | ||||||||||||||||
Net realized gains/(losses) on: | ||||||||||||||||
Investment transactions | 7,625,501 | 1,976,399 | ||||||||||||||
Foreign currency transactions | (1,038,567 | ) | (66,621 | ) | ||||||||||||
Foreign tax | (3,671 | ) | (53,834 | ) | ||||||||||||
|
|
|
| |||||||||||||
Net realized gains | 6,583,263 | 1,855,944 | ||||||||||||||
Net change in unrealized appreciation/ (depreciation) on: | ||||||||||||||||
Investments | (251,856,292 | ) | (5,890,866 | ) | ||||||||||||
Foreign currency | 8,910 | 1,206 | ||||||||||||||
Foreign tax | (5,312,099 | ) | (94,514 | ) | ||||||||||||
|
|
|
| |||||||||||||
Net unrealized losses | (257,159,481 | ) | (5,984,174 | ) | ||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from operations | $ | (230,743,592 | ) | $ | (3,297,477 | ) | ||||||||||
|
|
|
|
28
FINANCIAL STATEMENTS
|
Statements of Operations (cont.)
|
For the Six Months Ended September 30, 2021 (Unaudited) |
| |||||||||||||||
RBC Global Opportunities Fund | RBC International Opportunities Fund | |||||||||||||||
Investment Income: | ||||||||||||||||
Dividend income - unaffiliated | $ | 2,050,729 | $ | 1,915,519 | ||||||||||||
Dividend income - affiliated | 826 | 248 | ||||||||||||||
Foreign tax withholding | (124,296 | ) | (191,067 | ) | ||||||||||||
|
|
|
| |||||||||||||
Total Investment Income | 1,927,259 | 1,724,700 | ||||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 1,309,066 | 639,792 | ||||||||||||||
Distribution fees–Class A | 18 | 35 | ||||||||||||||
Accounting fees | 36,107 | 33,475 | ||||||||||||||
Audit fees | 21,763 | 21,763 | ||||||||||||||
Custodian fees | 26,467 | 27,583 | ||||||||||||||
Insurance fees | 1,786 | 1,786 | ||||||||||||||
Legal fees | 7,927 | 8,064 | ||||||||||||||
Registrations and filing fees | 29,778 | 26,808 | ||||||||||||||
Shareholder reports | 11,217 | 11,309 | ||||||||||||||
Transfer agent fees–Class A | 4,615 | 4,618 | ||||||||||||||
Transfer agent fees–Class I | 57,663 | 114,144 | ||||||||||||||
Transfer agent fees–Class R6 | 2,197 | 1,767 | ||||||||||||||
Trustees’ fees and expenses | 3,833 | 2,429 | ||||||||||||||
Tax expense | 2,376 | 6,646 | ||||||||||||||
Other fees | 3,580 | 3,588 | ||||||||||||||
|
|
|
| |||||||||||||
Total expenses before fee waiver/reimbursement | 1,518,393 | 903,807 | ||||||||||||||
Expenses waived/reimbursed by: | ||||||||||||||||
Advisor | (58,395 | ) | (172,587 | ) | ||||||||||||
|
|
|
| |||||||||||||
Net expenses | 1,459,998 | 731,220 | ||||||||||||||
|
|
|
| |||||||||||||
Net Investment Income | 467,261 | 993,480 | ||||||||||||||
|
|
|
| |||||||||||||
Realized/Unrealized Gains/(Losses): | ||||||||||||||||
Net realized gains/(losses) on: | ||||||||||||||||
Investment transactions | 11,975,330 | 4,101,341 | ||||||||||||||
Foreign currency transactions | (182,092 | ) | (88,443 | ) | ||||||||||||
|
|
|
| |||||||||||||
Net realized gains | 11,793,238 | 4,012,898 | ||||||||||||||
Net change in unrealized appreciation/ (depreciation) on: | ||||||||||||||||
Investments | 8,490,107 | 791,416 | ||||||||||||||
Foreign currency | 12,291 | (7,482 | ) | |||||||||||||
|
|
|
| |||||||||||||
Net unrealized gains | 8,502,398 | 783,934 | ||||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from operations | $ | 20,762,897 | $ | 5,790,312 | ||||||||||||
|
|
|
|
See Notes to the Financial Statements.
29
RBC Emerging Markets Equity Fund | ||||||||||||
For the Six Months Ended September 30, 2021 (Unaudited) | For the Year Ended March 31, 2021 | |||||||||||
From Investment Activities | ||||||||||||
Operations: | ||||||||||||
Net investment income | $ | 19,832,626 | $ | 10,178,324 | ||||||||
Net realized gains from investments and foreign currency | 6,583,263 | 53,268,159 | ||||||||||
Net change in unrealized appreciation/(depreciation) on investments and foreign currency | (257,159,481 | ) | 648,938,235 | |||||||||
|
|
|
| |||||||||
Change in net assets resulting from operations | (230,743,592 | ) | 712,384,718 | |||||||||
|
|
|
| |||||||||
Distributions to Shareholders: | ||||||||||||
Class A | — | (163,602 | ) | |||||||||
Class I | — | (18,319,080 | ) | |||||||||
Class R6 | — | (2,504,202 | ) | |||||||||
|
|
|
| |||||||||
Change in net assets resulting from shareholder distributions | — | (20,986,884 | ) | |||||||||
|
|
|
| |||||||||
Capital Transactions: | ||||||||||||
Proceeds from shares issued | 593,769,808 | 1,040,108,368 | ||||||||||
Distributions reinvested | — | 19,305,459 | ||||||||||
Cost of shares redeemed | (332,466,795 | ) | (300,371,017 | ) | ||||||||
|
|
|
| |||||||||
Change in net assets resulting from capital transactions | 261,303,013 | 759,042,810 | ||||||||||
|
|
|
| |||||||||
Net increase in net assets | 30,559,421 | 1,450,440,644 | ||||||||||
Net Assets: | ||||||||||||
Beginning of period | 2,663,109,391 | 1,212,668,747 | ||||||||||
|
|
|
| |||||||||
End of period | $ | 2,693,668,812 | $ | 2,663,109,391 | ||||||||
|
|
|
| |||||||||
Share Transactions: | ||||||||||||
Issued | 40,380,868 | 75,521,009 | ||||||||||
Reinvested | — | 1,367,719 | ||||||||||
Redeemed | (22,783,807 | ) | (23,315,707 | ) | ||||||||
|
|
|
| |||||||||
Change in shares resulting from capital transactions | 17,597,061 | 53,573,021 | ||||||||||
|
|
|
|
See Notes to the Financial Statements.
30
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets
|
RBC Emerging Markets Value Equity Fund | ||||||||||||||||
For the Six Months Ended September 30, 2021 (Unaudited) | For the Year Ended March 31, 2021 | |||||||||||||||
From Investment Activities | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 830,753 | $ | 205,278 | ||||||||||||
Net realized gains from investments and foreign currency | 1,855,944 | 2,997,856 | ||||||||||||||
Net change in unrealized appreciation/(depreciation) on investments and foreign currency | (5,984,174 | ) | 9,663,602 | |||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from operations | (3,297,477 | ) | 12,866,736 | |||||||||||||
|
|
|
| |||||||||||||
Distributions to Shareholders: | ||||||||||||||||
Class I | — | (149,230 | ) | |||||||||||||
Class R6 | — | (86,448 | ) | |||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from shareholder distributions | — | (235,678 | ) | |||||||||||||
|
|
|
| |||||||||||||
Capital Transactions: | ||||||||||||||||
Proceeds from shares issued | 35,810,925 | 29,825,722 | ||||||||||||||
Distributions reinvested | — | 235,678 | ||||||||||||||
Cost of shares redeemed | (1,520,885 | ) | (2,204,799 | ) | ||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from capital transactions | 34,290,040 | 27,856,601 | ||||||||||||||
|
|
|
| |||||||||||||
Net increase in net assets | 30,992,563 | 40,487,659 | ||||||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 43,962,187 | 3,474,528 | ||||||||||||||
|
|
|
| |||||||||||||
End of period | $ | 74,954,750 | $ | 43,962,187 | ||||||||||||
|
|
|
| |||||||||||||
Share Transactions: | ||||||||||||||||
Issued | 3,104,676 | 3,554,158 | ||||||||||||||
Reinvested | — | 23,802 | ||||||||||||||
Redeemed | (130,300 | ) | (194,642 | ) | ||||||||||||
|
|
|
| |||||||||||||
Change in shares resulting from capital transactions | 2,974,376 | 3,383,318 | ||||||||||||||
|
|
|
|
See Notes to the Financial Statements.
31
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets
|
RBC Global Opportunities Fund | ||||||||||||
For the Six Months Ended September 30, 2021 (Unaudited) | For the Year Ended March 31, 2021 | |||||||||||
From Investment Activities | ||||||||||||
Operations: | ||||||||||||
Net investment income | $ | 467,261 | $ | 346,709 | ||||||||
Net realized gains from investments and foreign currency | 11,793,238 | 15,443,915 | ||||||||||
Net change in unrealized appreciation on investments and foreign currency | 8,502,398 | 35,910,191 | ||||||||||
|
|
|
| |||||||||
Change in net assets resulting from operations | 20,762,897 | 51,700,815 | ||||||||||
|
|
|
| |||||||||
Distributions to Shareholders: | ||||||||||||
Class A | — | (317 | ) | |||||||||
Class I | — | (1,917,882 | ) | |||||||||
Class R6 | — | (2,159,636 | ) | |||||||||
|
|
|
| |||||||||
Change in net assets resulting from shareholder distributions | — | (4,077,835 | ) | |||||||||
|
|
|
| |||||||||
Capital Transactions: | ||||||||||||
Proceeds from shares issued | 300,618,142 | 230,249,771 | ||||||||||
Distributions reinvested | — | 3,985,805 | ||||||||||
Cost of shares redeemed | (79,498,958 | ) | (76,173,153 | ) | ||||||||
|
|
|
| |||||||||
Change in net assets resulting from capital transactions | 221,119,184 | 158,062,423 | ||||||||||
|
|
|
| |||||||||
Net increase in net assets | 241,882,081 | 205,685,403 | ||||||||||
Net Assets: | ||||||||||||
Beginning of period | 264,571,575 | 58,886,172 | ||||||||||
|
|
|
| |||||||||
End of period | $ | 506,453,656 | $ | 264,571,575 | ||||||||
|
|
|
| |||||||||
Share Transactions: | ||||||||||||
Issued | 14,064,423 | 12,864,250 | ||||||||||
Reinvested | — | 211,211 | ||||||||||
Redeemed | (3,707,369 | ) | (4,255,199 | ) | ||||||||
|
|
|
| |||||||||
Change in shares resulting from capital transactions | 10,357,054 | 8,820,262 | ||||||||||
|
|
|
|
See Notes to the Financial Statements.
32
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets
|
RBC International Opportunities Fund | ||||||||||||
For the Six Months Ended September 30, 2021 (Unaudited) | For the Year Ended March 31, 2021 | |||||||||||
From Investment Activities | ||||||||||||
Operations: | ||||||||||||
Net investment income | $ | 993,480 | $ | 804,796 | ||||||||
Net realized gains from investments and foreign currency | 4,012,898 | 6,113,702 | ||||||||||
Net change in unrealized appreciation on investments and foreign currency | 783,934 | 56,251,195 | ||||||||||
|
|
|
| |||||||||
Change in net assets resulting from operations | 5,790,312 | 63,169,693 | ||||||||||
|
|
|
| |||||||||
Distributions to Shareholders: | ||||||||||||
Class A | — | (620 | ) | |||||||||
Class I | — | (9,574,285 | ) | |||||||||
Class R6 | — | (1,025 | ) | |||||||||
|
|
|
| |||||||||
Change in net assets resulting from shareholder distributions | — | (9,575,930 | ) | |||||||||
|
|
|
| |||||||||
Capital Transactions: | ||||||||||||
Proceeds from shares issued | 16,868,540 | 79,661,795 | ||||||||||
Distributions reinvested | — | 7,798,538 | ||||||||||
Cost of shares redeemed | (13,512,030 | ) | (43,806,370 | ) | ||||||||
|
|
|
| |||||||||
Change in net assets resulting from capital transactions | 3,356,510 | 43,653,963 | ||||||||||
|
|
|
| |||||||||
Net increase in net assets | 9,146,822 | 97,247,726 | ||||||||||
Net Assets: | ||||||||||||
Beginning of period | 170,828,409 | 73,580,683 | ||||||||||
|
|
|
| |||||||||
End of period | $ | 179,975,231 | $ | 170,828,409 | ||||||||
|
|
|
| |||||||||
Share Transactions: | ||||||||||||
Issued | 1,232,083 | 7,759,846 | ||||||||||
Reinvested | — | 624,883 | ||||||||||
Redeemed | (995,388 | ) | (3,960,332 | ) | ||||||||
|
|
|
| |||||||||
Change in shares resulting from capital transactions | 236,695 | 4,424,397 | ||||||||||
|
|
|
|
See Notes to the Financial Statements.
33
RBC Emerging Markets Equity 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 9/30/21 (Unaudited) | $14.64 | 0.09 | (1.26 | ) | —(b | ) | (1.17 | ) | — | — | — | $13.47 | ||||||||||||||||||||||||
Year Ended 3/31/21 | 9.50 | —(b | ) | 5.25 | —(b | ) | 5.25 | (0.11 | ) | — | (0.11 | ) | 14.64 | |||||||||||||||||||||||
Year Ended 3/31/20 | 11.82 | 0.38(c | ) | (2.33 | ) | — | (1.95 | ) | (0.36 | ) | (0.01 | ) | (0.37 | ) | 9.50 | |||||||||||||||||||||
Year Ended 3/31/19 | 13.05 | 0.21 | (0.56 | ) | — | (0.35 | ) | (0.10 | ) | (0.78 | ) | (0.88 | ) | 11.82 | ||||||||||||||||||||||
Year Ended 3/31/18 | 10.91 | 0.10 | 2.13 | — | 2.23 | (0.09 | ) | —(b | ) | (0.09 | ) | 13.05 | ||||||||||||||||||||||||
Year Ended 3/31/17 | 9.81 | 0.11 | 1.10 | — | 1.21 | (0.07 | ) | (0.04 | ) | (0.11 | ) | 10.91 | ||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | $14.91 | 0.11 | (1.29 | ) | —(b | ) | (1.18 | ) | — | — | — | $13.73 | ||||||||||||||||||||||||
Year Ended 3/31/21 | 9.67 | 0.07 | 5.32 | —(b | ) | 5.39 | (0.15 | ) | — | (0.15 | ) | 14.91 | ||||||||||||||||||||||||
Year Ended 3/31/20 | 12.01 | 0.44(c | ) | (2.39 | ) | — | (1.95 | ) | (0.38 | ) | (0.01 | ) | (0.39 | ) | 9.67 | |||||||||||||||||||||
Year Ended 3/31/19 | 13.26 | 0.18 | (0.51 | ) | — | (0.33 | ) | (0.14 | ) | (0.78 | ) | (0.92 | ) | 12.01 | ||||||||||||||||||||||
Year Ended 3/31/18 | 11.07 | 0.15 | 2.16 | — | 2.31 | (0.12 | ) | —(b | ) | (0.12 | ) | 13.26 | ||||||||||||||||||||||||
Year Ended 3/31/17 | 9.95 | 0.12 | 1.12 | — | 1.24 | (0.08 | ) | (0.04 | ) | (0.12 | ) | 11.07 | ||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | $14.98 | 0.11 | (1.30 | ) | — | (1.19 | ) | — | — | — | $13.79 | |||||||||||||||||||||||||
Year Ended 3/31/21 | 9.72 | 0.07 | 5.34 | — | 5.41 | (0.15 | ) | — | (0.15 | ) | 14.98 | |||||||||||||||||||||||||
Year Ended 3/31/20 | 12.07 | 0.38(c | ) | (2.34 | ) | — | (1.96 | ) | (0.38 | ) | (0.01 | ) | (0.39 | ) | 9.72 | |||||||||||||||||||||
Year Ended 3/31/19 | 13.31 | 0.18 | (0.50 | ) | — | (0.32 | ) | (0.14 | ) | (0.78 | ) | (0.92 | ) | 12.07 | ||||||||||||||||||||||
Year Ended 3/31/18 | 11.13 | 0.15 | 2.15 | — | 2.30 | (0.12 | ) | —(b | ) | (0.12 | ) | 13.31 | ||||||||||||||||||||||||
Period Ended 3/31/17(d) | 10.08 | 0.04 | 1.08 | — | 1.12 | (0.03 | ) | (0.04 | ) | (0.07 | ) | 11.13 |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(b) | Less than $0.01 or $(0.01) per share. |
34
FINANCIAL HIGHLIGHTS
RBC Emerging Markets Equity Fund
(Selected data for a share outstanding throughout the periods indicated)
(c) | Net investment income per share and the ratio of net investment income to average net assets include $0.27 and 2.30%, for Class A and $0.27 and 2.30% for Class I and $0.28 and 2.30% for the Class R6, respectively, resulting from the special dividend from Naspers LTD/Prosus in September 2019. |
(d) | For the period from November 22, 2016 (commencement of operations) to March 31, 2017. |
35
FINANCIAL HIGHLIGHTS
RBC Emerging Markets Equity 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 9/30/21 (Unaudited) | (7.99)%(c) | $ | 274,058 | 1.13%(d) | 1.21%(d) | 1.55%(d) | 8% | |||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/21 | 55.33% | 287,862 | 1.13% | 0.00% | 1.45% | 15% | ||||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/20 | (17.22)% | 19,435 | 1.13% | 3.19%(e) | 1.36% | 20% | ||||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/19 | (1.90)% | 14,815 | 1.13% | 1.74% | 1.47% | 19% | ||||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/18 | 20.42%(f) | 48,235 | 1.03%(g) | 0.76% | 1.55% | 42% | ||||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/17 | 12.42% | 5,115 | 0.98% | 1.09% | 1.80% | 19% | ||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | (7.91)%(c) | $ | 2,167,065 | 0.88%(d) | 1.46%(d) | 0.96%(d) | 8% | |||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/21 | 55.77% | 2,069,695 | 0.88% | 0.57% | 0.99% | 15% | ||||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/20 | (16.97)% | 1,047,077 | 0.88% | 3.65%(e) | 1.02% | 20% | ||||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/19 | (1.71)% | 766,141 | 0.88% | 1.46% | 1.08% | 19% | ||||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/18 | 20.81%(f) | 556,822 | 0.78%(g) | 1.20% | 1.18% | 42% | ||||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/17 | 12.56% | 223,971 | 0.73% | 1.18% | 1.30% | 19% | ||||||||||||||||||||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | (7.88)%(c) | $ | 252,546 | 0.88%(d) | 1.45%(d) | 0.88%(d) | 8% | |||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/21 | 55.70% | 305,553 | 0.88% | 0.58% | 0.88% | 15% | ||||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/20 | (16.97)% | 146,156 | 0.88% | 3.20%(e) | 0.91% | 20% | ||||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/19 | (1.62)% | 99,198 | 0.88% | 1.47% | 0.98% | 19% | ||||||||||||||||||||||||||||||||||||||||||
Year Ended 3/31/18 | 20.63%(f) | 44,584 | 0.77%(g) | 1.16% | 1.09% | 42% | ||||||||||||||||||||||||||||||||||||||||||
Period Ended 3/31/17(h) | 11.20%(c) | 23,224 | 0.73%(d) | 0.95%(d) | 1.28%(d) | 19% |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Excludes sales charge. |
(b) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
36
FINANCIAL HIGHLIGHTS
RBC Emerging Markets Equity Fund
(Selected data for a share outstanding throughout the periods indicated)
(c) | Not annualized. |
(d) | Annualized. |
(e) | Net investment income per share and the ratio of net investment income to average net assets include $0.27 and 2.30%, for Class A and $0.27 and 2.30% for Class I and $0.28 and 2.30% for the Class R6, respectively, resulting from the special dividend from Naspers LTD/Prosus in September 2019. |
(f) | Includes a payment made by the sub-advisor. The impact of the payment to total returns for each class is 0.17%. |
(g) | Beginning January 2, 2018, the net operating expenses were contractually limited to 1.13%, 0.88% and 0.88% of average daily net assets for Class A, Class I and Class R6, respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended March 31, 2018. |
(h) | For the period from November 22, 2016 (commencement of operations) to March 31, 2017. |
See Notes to the Financial Statements.
37
FINANCIAL HIGHLIGHTS
RBC Emerging Markets Value Equity 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 9/30/21 (Unaudited) | $11.22 | 0.14 | (0.45 | ) | (0.31 | ) | — | — | — | $10.91 | ||||||||||||||||||||||
Year Ended 3/31/21 | 6.42 | 0.08 | 4.76 | 4.84 | (0.03 | ) | (0.01 | ) | (0.04 | ) | 11.22 | |||||||||||||||||||||
Year Ended 3/31/20 | 8.74 | 0.33(b | ) | (2.31 | ) | (1.98 | ) | (0.34 | ) | — | (0.34 | ) | 6.42 | |||||||||||||||||||
Year Ended 3/31/19 | 10.17 | 0.21 | (1.44 | ) | (1.23 | ) | (0.18 | ) | (0.02 | ) | (0.20 | ) | 8.74 | |||||||||||||||||||
Period Ended 3/31/18(c) | 10.00 | 0.02 | 0.15 | 0.17 | — | — | — | 10.17 | ||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | $10.90 | 0.14 | (0.45 | ) | (0.31 | ) | — | — | — | $10.59 | ||||||||||||||||||||||
Year Ended 3/31/21 | 6.42 | 0.12 | 4.68 | 4.80 | (0.31 | ) | (0.01 | ) | (0.32 | ) | 10.90 | |||||||||||||||||||||
Year Ended 3/31/20 | 8.74 | 0.34(b | ) | (2.31 | ) | (1.97 | ) | (0.35 | ) | — | (0.35 | ) | 6.42 | |||||||||||||||||||
Year Ended 3/31/19 | 10.17 | 0.21 | (1.43 | ) | (1.22 | ) | (0.19 | ) | (0.02 | ) | (0.21 | ) | 8.74 | |||||||||||||||||||
Period Ended 3/31/18(c) | 10.00 | 0.02 | 0.15 | 0.17 | — | — | — | 10.17 |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(b) | Net investment income per share and the ratio of net investment income to average net assets include $0.14 and 1.63% for Class I and $0.14 and 1.63% for Class R6, respectively, resulting from the special dividend from Naspers LTD/Prosus in September 2019. |
(c) | For the period from February 9, 2018 (commencement of operations) to March 31, 2018. |
38
FINANCIAL HIGHLIGHTS
RBC Emerging Markets Value Equity Fund
(Selected data for a share outstanding throughout the periods indicated)
Ratios/Supplemental Data | ||||||||||||||||||||||||||||||
Total | Net Assets, Period (000’s) | Ratio of | Ratio of Net Assets | Ratio of | Portfolio Turnover Rate** | |||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | (2.94 | )%(b) | $ | 65,434 | 0.95 | %(c) | 2.43 | %(c) | 1.30 | %(c) | 15 | % | ||||||||||||||||||
Year Ended 3/31/21 | 75.61 | % | 40,956 | 0.95 | % | 0.79 | % | 1.97 | % | 68 | % | |||||||||||||||||||
Year Ended 3/31/20 | (23.71 | )% | 1,762 | 0.95 | % | 3.91 | %(d) | 6.68 | % | 71 | % | |||||||||||||||||||
Year Ended 3/31/19 | (12.04 | )% | 2,245 | 0.77 | %(e) | 2.35 | % | 7.02 | % | 75 | % | |||||||||||||||||||
Period Ended 3/31/18(f) | 1.90 | %(b) | 2,543 | 1.11 | %(c) | 1.75 | %(c) | 9.98 | %(c) | 27 | % | |||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | (2.84 | )%(b) | $ | 9,521 | 0.88 | %(c) | 2.55 | %(c) | 1.26 | %(c) | 15 | % | ||||||||||||||||||
Year Ended 3/31/21 | 75.44 | % | 3,006 | 0.88 | % | 1.36 | % | 3.37 | % | 68 | % | |||||||||||||||||||
Year Ended 3/31/20 | (23.58 | )% | 1,712 | 0.88 | % | 3.99 | %(d) | 6.67 | % | 71 | % | |||||||||||||||||||
Year Ended 3/31/19 | (11.98 | )% | 2,242 | 0.71 | %(e) | 2.41 | % | 6.96 | % | 75 | % | |||||||||||||||||||
Period Ended 3/31/18(f) | 1.90 | %(b) | 2,543 | 1.06 | %(c) | 1.80 | %(c) | 9.60 | %(c) | 27 | % |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
(b) | Not annualized. |
(c) | Annualized. |
(d) | Net investment income per share and the ratio of net investment income to average net assets include $0.14 and 1.63% for Class I and $0.14 and 1.63% for Class R6, respectively, resulting from the special dividend from Naspers LTD/Prosus in September 2019. |
(e) | Beginning July 2, 2018, the net operating expenses were contractually limited to 0.95% and 0.88% of average daily net assets for Class I and Class R6, respectively. The ratio of net expenses to average net assets represents a blended percentage for the year ended March 31, 2019. |
(f) | For the period from February 9, 2018 (commencement of operations) to March 31, 2018. |
See Notes to the Financial Statements.
39
FINANCIAL HIGHLIGHTS
RBC Global Opportunities 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 9/30/21 (Unaudited) | $19.39 | —(b | ) | 1.66 | — | 1.66 | — | — | — | $21.05 | ||||||||||||||||||||||||||
Year Ended 3/31/21 | 12.28 | (0.01 | ) | 7.51 | —(b | ) | 7.50 | — | (0.39 | ) | (0.39 | ) | 19.39 | |||||||||||||||||||||||
Period Ended 3/31/20(c) | 15.50 | 0.02 | (3.24 | ) | — | (3.22 | ) | — | — | — | 12.28 | |||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | $19.41 | 0.02 | 1.66 | — | 1.68 | — | — | — | $21.09 | |||||||||||||||||||||||||||
Year Ended 3/31/21 | 12.28 | 0.04 | 7.53 | — | 7.57 | (0.05 | ) | (0.39 | ) | (0.44 | ) | 19.41 | ||||||||||||||||||||||||
Year Ended 3/31/20 | 14.04 | 0.20(d) | (1.53 | ) | — | (1.33 | ) | (0.16 | ) | (0.27 | ) | (0.43 | ) | 12.28 | ||||||||||||||||||||||
Year Ended 3/31/19 | 13.69 | 0.09 | 0.72 | — | 0.81 | (0.02 | ) | (0.44 | ) | (0.46 | ) | 14.04 | ||||||||||||||||||||||||
Year Ended 3/31/18 | 11.31 | 0.07 | 2.82 | — | 2.89 | (0.08 | ) | (0.43 | ) | (0.51 | ) | 13.69 | ||||||||||||||||||||||||
Year Ended 3/31/17 | 10.12 | 0.07 | 1.20 | — | 1.27 | (0.08 | ) | — | (0.08 | ) | 11.31 | |||||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | $19.47 | 0.03 | 1.66 | — | 1.69 | — | — | — | $21.16 | |||||||||||||||||||||||||||
Year Ended 3/31/21 | 12.30 | 0.06 | 7.52 | — | 7.58 | (0.02 | ) | (0.39 | ) | (0.41 | ) | 19.47 | ||||||||||||||||||||||||
Year Ended 3/31/20 | 14.08 | 0.16(d) | (1.48 | ) | — | (1.32 | ) | (0.19 | ) | (0.27 | ) | (0.46 | ) | 12.30 | ||||||||||||||||||||||
Year Ended 3/31/19 | 13.77 | 0.13 | 0.68 | — | 0.81 | (0.06 | ) | (0.44 | ) | (0.50 | ) | 14.08 | ||||||||||||||||||||||||
Year Ended 3/31/18 | 11.39 | 0.07 | 2.85 | — | 2.92 | (0.11 | ) | (0.43 | ) | (0.54 | ) | 13.77 | ||||||||||||||||||||||||
Period Ended 3/31/17(e) | 10.42 | —(b) | 0.97 | — | 0.97 | — | — | — | 11.39 |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(b) | Less than $0.01 or $(0.01) per share. |
(c) | For the period from January 28, 2020 (commencement of operations) to March 31. 2020. |
(d) | Net investment income per share and the ratio of net investment income to average net assets include $0.13 and 0.87% for Class I and $0.12 and 0.87% for Class R6, respectively, resulting from the special dividend from Naspers LTD/Prosus in September 2019. |
(e) | For the period from November 22, 2016 (commencement of operations) to March 31, 2017. |
40
FINANCIAL HIGHLIGHTS
RBC Global Opportunities Fund
(Selected data for a share outstanding throughout the periods indicated)
Ratios/Supplemental Data | ||||||||||||||||||||||||||
Total | Net Assets, End of | Ratio of Net Expenses to Average Net Assets | Ratio of Net Investment Income (Loss) to Average Net Assets | Ratio of Expenses to Average Net | Portfolio Turnover Rate** | |||||||||||||||||||||
Class A | ||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) |
| 8.56%(c) | $ 14 | 1.00%(d) | (0.02)%(d) | 65.72%(d) | 10% | |||||||||||||||||||
Year Ended 3/31/21 | 61.21% | 13 | 1.02%(e) | (0.07)% | 33.96% | 62% | ||||||||||||||||||||
Period Ended 3/31/20(f) | (20.77)%(c) | 8 | 1.11%(d) | 0.82%(d) | 1.64%(d) | 23% | ||||||||||||||||||||
Class I | ||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | 8.66%(c) | $247,574 | 0.75%(d) | 0.19%(d) | 0.78%(d) | 10% | ||||||||||||||||||||
Year Ended 3/31/21 | 61.74% | 144,339 | 0.77%(e) | 0.25% | 0.99% | 62% | ||||||||||||||||||||
Year Ended 3/31/20 | (10.10)% | 58,090 | 0.86% | 1.35%(g) | 1.25% | 23% | ||||||||||||||||||||
Year Ended 3/31/19 | 6.49% | 18,873 | 0.86% | 0.64% | 1.94% | 28% | ||||||||||||||||||||
Year Ended 3/31/18 | 25.71% | 11,236 | 0.94%(h) | 0.50% | 2.52% | 30% | ||||||||||||||||||||
Year Ended 3/31/17 | 12.58% | 7,102 | 1.05% | 0.65% | 3.26% | 36% | ||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | 8.68%(c) | $258,865 | 0.70%(d) | 0.28%(d) | 0.72%(d) | 10% | ||||||||||||||||||||
Year Ended 3/31/21 | 61.76% | 120,220 | 0.71%(e) | 0.31% | 0.90% | 62% | ||||||||||||||||||||
Year Ended 3/31/20 | (10.01)% | 788 | 0.81% | 1.19%(g) | 5.44% | 23% | ||||||||||||||||||||
Year Ended 3/31/19 | 6.54% | 55 | 0.81% | 0.95% | 18.77% | 28% | ||||||||||||||||||||
Year Ended 3/31/18 | 25.80% | 14 | 0.90%(h) | 0.56% | 30.59% | 30% | ||||||||||||||||||||
Period Ended 3/31/17(i) | 9.31%(c) | 11 | 1.00%(d) | 0.10%(d) | 77.25%(d) | 36% |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | 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) | Not annualized. |
(d) | Annualized. |
41
FINANCIAL HIGHLIGHTS
RBC Global Opportunities Fund
(Selected data for a share outstanding throughout the periods indicated)
(e) | Beginning June 18, 2020, the net operating expenses were contractually limited to 1.00%, 0.75% and 0.70% of average daily net assets for Class A and Class I and Class R6, respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended March 31, 2021. |
(f) | For the period from January 28, 2020 (commencement of operations) to March 31. 2020. |
(g) | Net investment income per share and the ratio of net investment income to average net assets include $0.13 and 0.87% for Class I and $0.12 and 0.87% for Class R6, respectively, resulting from the special dividend from Naspers LTD/Prosus in September 2019. |
(h) | Beginning October 2, 2017, the net operating expenses were contractually limited to 0.86% and 0.81% of average daily net assets for Class I and Class R6, respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended March 31, 2018. |
(i) | For the period from November 22, 2016 (commencement of operations) to March 31, 2017. |
See Notes to the Financial Statements.
42
FINANCIAL HIGHLIGHTS
RBC International Opportunities 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 9/30/21 (Unaudited) | $12.92 | 0.05 | 0.38 | 0.43 | — | — | — | $13.35 | ||||||||||||||||||||||||
Year Ended 3/31/21 | 8.41 | 0.02 | 5.17 | 5.19 | — | (0.68 | ) | (0.68 | ) | 12.92 | ||||||||||||||||||||||
Period Ended 3/31/20(b) | 11.03 | 0.02 | (2.64 | ) | (2.62 | ) | — | — | — | 8.41 | ||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | $12.97 | 0.07 | 0.38 | 0.45 | — | — | — | $13.42 | ||||||||||||||||||||||||
Year Ended 3/31/21 | 8.41 | 0.07 | 5.29 | 5.36 | (0.12 | ) | (0.68 | ) | (0.80 | ) | 12.97 | |||||||||||||||||||||
Year Ended 3/31/20 | 10.27 | 0.29(c | ) | (1.70 | ) | (1.41 | ) | (0.31 | ) | (0.14 | ) | (0.45 | ) | 8.41 | ||||||||||||||||||
Year Ended 3/31/19 | 11.39 | 0.18 | (0.56 | ) | (0.38 | ) | (0.10 | ) | (0.64 | ) | (0.74 | ) | 10.27 | |||||||||||||||||||
Year Ended 3/31/18 | 9.69 | 0.11 | 1.88 | 1.99 | (0.12 | ) | (0.17 | ) | (0.29 | ) | 11.39 | |||||||||||||||||||||
Year Ended 3/31/17 | 9.47 | 0.09 | 0.18 | 0.27 | (0.05 | ) | — | (0.05 | ) | 9.69 | ||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | $13.05 | 0.08 | 0.38 | 0.46 | — | — | — | $13.51 | ||||||||||||||||||||||||
Year Ended 3/31/21 | 8.46 | 0.08 | 5.32 | 5.40 | (0.13 | ) | (0.68 | ) | (0.81 | ) | 13.05 | |||||||||||||||||||||
Year Ended 3/31/20 | 10.33 | 0.29(c | ) | (1.70 | ) | (1.41 | ) | (0.32 | ) | (0.14 | ) | (0.46 | ) | 8.46 | ||||||||||||||||||
Year Ended 3/31/19 | 11.44 | 0.18 | (0.55 | ) | (0.37 | ) | (0.10 | ) | (0.64 | ) | (0.74 | ) | 10.33 | |||||||||||||||||||
Year Ended 3/31/18 | 9.74 | 0.13 | 1.88 | 2.01 | (0.14 | ) | (0.17 | ) | (0.31 | ) | 11.44 | |||||||||||||||||||||
Period Ended 3/31/17(d) | 9.11 | 0.02 | 0.61 | 0.63 | —(e | ) | — | —(e | ) | 9.74 |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(b) | For the period from January 28, 2020 (commencement of operations) to March 31. 2020. |
(c) | Net investment income per share and the ratio of net investment income to average net assets include $0.17 and 1.58% for Class I and $0.17 and 1.58% for Class R6, respectively, resulting from the special dividend from Naspers LTD/Prosus in September 2019. |
(d) | For the period from November 22, 2016 (commencement of operations) to March 31, 2017. |
(e) | Less than $0.01 or $(0.01) per share. |
43
FINANCIAL HIGHLIGHTS
RBC International Opportunities 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 | Portfolio Turnover Rate** | |||||||||||||||||||||
Class A | ||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) |
| 3.33%(c) | $ 33 | 1.05%(d) | 0.79%(d) | 33.72%(d) | 17% | |||||||||||||||||||
Year Ended 3/31/21 | 62.00% | 22 | 1.10%(e) | 0.15% | 3.67% | 37% | ||||||||||||||||||||
Period Ended 3/31/20(f) | (23.75)%(c) | 8 | 1.14%(d) | 1.42%(d) | 1.38%(d) | 45% | ||||||||||||||||||||
Class I | ||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | 3.47%(c) | $179,924 | 0.80%(d) | 1.09%(d) | 0.98%(d) | 17% | ||||||||||||||||||||
Year Ended 3/31/21 | 63.90% | 170,788 | 0.81%(e) | 0.59% | 1.11% | 37% | ||||||||||||||||||||
Year Ended 3/31/20 | (14.68)% | 73,562 | 0.89% | 2.76%(g) | 1.21% | 45% | ||||||||||||||||||||
Year Ended 3/31/19 | (2.46)% | 66,202 | 0.89%(h) | 1.71% | 1.26%(h) | 49% | ||||||||||||||||||||
Year Ended 3/31/18 | 20.82% | 65,372 | 0.94%(i) | 1.03% | 1.32% | 45% | ||||||||||||||||||||
Year Ended 3/31/17 | 2.85% | 25,145 | 1.00% | 0.99% | 1.84% | 38% | ||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | 3.45%(c) | $ 18 | 0.75%(d) | 1.14%(d) | 19.74%(d) | 17% | ||||||||||||||||||||
Year Ended 3/31/21 | 64.15% | 18 | 0.76%(e) | 0.67% | 24.83% | 37% | ||||||||||||||||||||
Year Ended 3/31/20 | (14.74)% | 11 | 0.84% | 2.74%(g) | 28.05% | 45% | ||||||||||||||||||||
Year Ended 3/31/19 | (2.27)% | 13 | 0.84%(h) | 1.69% | 29.90%(h) | 49% | ||||||||||||||||||||
Year Ended 3/31/18 | 20.75% | 13 | 0.89%(i) | 1.14% | 30.23% | 45% | ||||||||||||||||||||
Period Ended 3/31/17(j) | 6.96%(c) | 11 | 0.95%(d) | 0.46%(d) | 77.08%(d) | 38% |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Excludes sales charge. |
(b) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
(c) | Not annualized. |
(d) | Annualized. |
44
FINANCIAL HIGHLIGHTS
RBC International Opportunities Fund
(Selected data for a share outstanding throughout the periods indicated)
(e) | Beginning June 18, 2020, the net operating expenses were contractually limited to 1.05%, 0.80% and 0.75% of average daily net assets for Class A and Class I and Class R6, respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended March 31, 2021. |
(f) | For the period from January 28, 2020 (commencement of operations) to March 31. 2020. |
(g) | Net investment income per share and the ratio of net investment income to average net assets include $0.17 and 1.58% for Class I and $0.17 and 1.58% for Class R6, respectively, resulting from the special dividend from Naspers LTD/Prosus in September 2019. |
(h) | Ratios include line of credit interest expense which is less than 0.01%. |
(i) | Beginning October 2, 2017, the net operating expenses were contractually limited to 0.89% and 0.84% of average daily net assets for Class I and Class R6, respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended March 31, 2018. |
(j) | For the period from November 22, 2016 (commencement of operations) to March 31, 2017. |
See Notes to the Financial Statements.
45
September 30, 2021 (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 16 portfolios. Overall responsibility for the management of the Trust is vested in its Board of Trustees (the “Board”). This report includes the following five investment portfolios (each a “Fund” and collectively, the “Funds”):
- RBC Emerging Markets Equity Fund (“Emerging Markets Equity Fund”)
- RBC Emerging Markets Value Equity Fund (“Emerging Markets Value Equity Fund”)
- RBC Global Opportunities Fund (“Global Opportunities Fund”)
- RBC International Opportunities Fund (“International Opportunities Fund”)
Emerging Markets Equity Fund, Global Opportunities Fund and International Opportunities Fund each offer three share classes: Class A, Class R6 and Class I shares. Emerging Markets Value Equity Fund offers two share classes: Class I and Class R6 shares. Class A shares are offered with a 5.75% maximum front-end sales charge and a 1.00% contingent deferred sales charge (“CDSC”) for redemption within 12 months of a $1 million or greater purchase on which no front-end sales charge was paid. Class I and Class R6 shares (intended for investors meeting certain investment minimum thresholds) are not subject to either a front-end sales charge or a CDSC.
RBC Global Asset Management (U.S.) Inc. (“RBC GAM-US” or “Advisor” or “Co-Administrator”) acts as the investment advisor for the Funds and RBC Global Asset Management (UK) Limited (“RBC GAM-UK” or “Sub-Advisor”) serves as the investment sub-advisor. The officers of the Trust (“Fund Management”) are also employees of RBC GAM-US.
2. Significant Accounting Policies
Each Fund is an investment company that follows accounting and reporting guidance under the Financial Accounting Standards Board. Summarized below are the significant accounting policies of the Funds. These policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). Fund Management follows these policies when preparing financial statements. Fund Management may also be required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The financial statements are as of the close of regular trading on the New York Stock Exchange (“NYSE”).
Security Valuation:
The Board has adopted pricing and valuation procedures for determining the fair value of each Fund’s investments. Fair value of a security is considered to be the price that a fund might reasonably expect to receive upon its current sale in an orderly transaction between market participants.
Equity securities are generally valued on the basis of prices furnished by third-party pricing services approved by the Board. Equity securities listed on one or more exchanges shall be valued at the last available quoted sale price on the primary trading exchange as of the regularly scheduled closing time of the exchange and are categorized as Level 1 in the fair value hierarchy. (See “Fair Value Measurements” below for additional information). An equity security not listed on an exchange but listed on NASDAQ shall be valued at the NASDAQ official closing price and is also categorized as Level 1. If there was no sale on the primary exchange on the day the net asset value is calculated or a NASDAQ official closing price is not available, the most recent bid quotation generally will be used and such securities will generally be categorized as Level 2. Investments in open-end investment companies (mutual funds) are valued at net asset value and are categorized as Level 1 in the fair value hierarchy.
Fixed income securities, including to-be-announced (“TBA”) commitments and municipal bonds, are generally valued based on evaluated prices received from third-party pricing services or from 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
46
NOTES TO FINANCIAL STATEMENTS
utilize both dealer-supplied valuations and electronic data processing techniques that take into account multiple appropriate factors such as institutional-size trading in similar groups of securities, market spreads, interest rates, and fundamental security analytical data including yield, quality, coupon rate, maturity and type of issue.
Foreign securities valued in non-U.S. dollars are valued in the foreign currency and then converted into the U.S. dollar equivalent using the foreign exchange rate in effect at the close of NYSE on the day the security’s value is determined. The value of securities traded in markets outside the United States may be affected on a day that the NYSE is closed and an investor is not able to purchase, exchange or redeem shares of the Funds.
Many securities markets and exchanges outside of North American and South American time zones close prior to the close of the NYSE; therefore, the closing prices for equity securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the NYSE. The Funds have procedures in place to fair value foreign equity securities traded in countries outside North American and South American time zones daily in order to take into account, among other things, any significant events occurring after the close of trading in a foreign market. The Funds receive adjusted fair value prices from a designated independent pricing vendor. In general, the vendor utilizes a multi-factor model to consider such information as the issue’s closing price, relevant general and sector indices and currency fluctuations to generate an evaluated adjustment factor for each security and provide an evaluated fair value price. The Funds generally categorize such evaluated fair value prices as Level 2 in the fair value hierarchy.
The Board has delegated to the Funds’ Pricing Committee (“Pricing Committee”) the responsibility for implementing the pricing and valuation procedures, including responsibility for determining the fair value of the Funds’ securities or other assets and liabilities. The Pricing Committee includes representatives of the Funds’ Advisor, and Co-Administrator, including personnel from accounting and operations, investment management, trading, risk management and compliance. The Pricing Committee meets at least quarterly to review and approve Fund valuation matters, including a review of the Funds’ pricing activity and operations, fair value measurements, pricing vendors, policies and procedures, and related controls. At least a quorum of the Pricing Committee shall meet more frequently, as needed, to consider and approve time-sensitive fair valuation matters. The Pricing Committee reports to the Valuation, Portfolio Management and Performance Committee (“Valuation Committee”) of the Board. Members of the Pricing Committee meet with the Valuation Committee and the Board at each of their regularly scheduled meetings to discuss valuation matters and actions taken during the period.
The Board has adopted procedures to determine the fair value of a security when a price is not available from a pricing service or broker- dealer or Fund Management determines that a price provided by a pricing service or broker-dealer does not approximate fair value. Fair valuation may also be used when a significant valuation event affecting the value of a security or market sector is determined to have occurred between the time when a security’s market closes and the time the Fund’s net asset value is calculated. The fair value of the security will be determined in good faith by the Pricing Committee in accordance with procedures and methodologies adopted by the Board. General factors used in determining the fair value of securities include, but are not limited to, fundamental analytical data relating to the security, the issuer and the market, such as duration, prepayment and default rates; general level of interest rates and changes in interest rates; information from broker-dealers; trading in similar securities; any restrictions on disposition of the security; and an evaluation of the forces that influence the market in which the investments are traded. These securities are either categorized as Level 2 or 3 in the fair value hierarchy, depending on the relevant inputs used.
When the Funds utilize fair valuation methods that use significant unobservable inputs to determine a security’s value, such securities will be categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. While the Funds’ policy is intended to result in a calculation of a Fund’s net asset value that fairly reflects security values as of the time of 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
47
NOTES TO FINANCIAL STATEMENTS
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.
48
NOTES TO FINANCIAL STATEMENTS
The summary of inputs used to determine the fair value of the Funds’ investments as of September 30, 2021 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Total | |||||||||||||
Emerging Markets Equity Fund Assets: | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Argentina | $ 25,023,060 | $ — | $— | $ 25,023,060 | ||||||||||||
Austria | — | 40,885,207 | — | 40,885,207 | ||||||||||||
Brazil | 100,614,131 | — | — | 100,614,131 | ||||||||||||
Chile | 25,136,886 | 99,249,169 | — | 124,386,055 | ||||||||||||
China | 159,650,127 | 398,427,335 | — | 558,077,462 | ||||||||||||
Hong Kong | — | 148,530,095 | — | 148,530,095 | ||||||||||||
India | — | 444,764,349 | — | 444,764,349 | ||||||||||||
Indonesia | — | 81,259,533 | — | 81,259,533 | ||||||||||||
Korea | — | 286,649,013 | — | 286,649,013 | ||||||||||||
Mexico | 69,532,096 | — | — | 69,532,096 | ||||||||||||
Peru | 28,374,015 | — | — | 28,374,015 | ||||||||||||
Philippines | — | 56,613,128 | — | 56,613,128 | ||||||||||||
South Africa | — | 126,149,462 | — | 126,149,462 | ||||||||||||
Taiwan | — | 402,720,243 | — | 402,720,243 | ||||||||||||
Thailand | — | 20,608,448 | — | 20,608,448 | ||||||||||||
Turkey | — | 37,073,830 | — | 37,073,830 | ||||||||||||
United Kingdom | — | 81,819,207 | — | 81,819,207 | ||||||||||||
Investment Company | 100,833,067 | — | — | 100,833,067 | ||||||||||||
Total Assets | $509,163,382 | $2,224,749,019 | $— | $2,733,912,401 |
49
NOTES TO FINANCIAL STATEMENTS
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Total | |||||||||||||
Emerging Markets Value Equity Fund Assets: | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Brazil | $ 2,375,880 | $ — | $— | $ 2,375,880 | ||||||||||||
Chile | 643,203 | 1,062,708 | — | 1,705,911 | ||||||||||||
China | 5,658,385 | 12,531,549 | — | 18,189,934 | ||||||||||||
Egypt | — | 929,406 | — | 929,406 | ||||||||||||
Greece | — | 575,862 | — | 575,862 | ||||||||||||
Hong Kong | — | 1,655,174 | — | 1,655,174 | ||||||||||||
Hungary | — | 1,478,671 | — | 1,478,671 | ||||||||||||
India | — | 6,839,607 | — | 6,839,607 | ||||||||||||
Indonesia | — | 962,990 | — | 962,990 | ||||||||||||
Korea | — | 11,346,426 | — | 11,346,426 | ||||||||||||
Mexico | 2,886,096 | — | — | 2,886,096 | ||||||||||||
Pakistan | — | 575,825 | — | 575,825 | ||||||||||||
Peru | 732,204 | — | — | 732,204 | ||||||||||||
Philippines | — | 564,964 | — | 564,964 | ||||||||||||
Russia | 861,328 | 3,452,492 | — | 4,313,820 | ||||||||||||
South Africa | — | 4,741,835 | — | 4,741,835 | ||||||||||||
Taiwan | — | 7,070,772 | — | 7,070,772 | ||||||||||||
Thailand | — | 757,374 | — | 757,374 | ||||||||||||
Turkey | — | 528,829 | — | 528,829 | ||||||||||||
United Arab Emirates | — | 723,760 | — | 723,760 | ||||||||||||
United States | — | 1,213,768 | — | 1,213,768 | ||||||||||||
Vietnam | — | 1,719,763 | — | 1,719,763 | ||||||||||||
Preferred Stocks | 2,215,565 | — | — | 2,215,565 | ||||||||||||
Investment Company | 1,295,452 | — | — | 1,295,452 | ||||||||||||
Total Assets | $16,668,113 | $58,731,775 | $— | $75,399,888 |
50
NOTES TO FINANCIAL STATEMENTS
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Total | |||||||||||||
Global Opportunities Fund Assets: | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Argentina | $ 6,045,840 | $ — | $— | $ 6,045,840 | ||||||||||||
Belgium | — | 18,413,308 | — | 18,413,308 | ||||||||||||
China | — | 4,613,247 | — | 4,613,247 | ||||||||||||
Denmark | — | 12,464,789 | — | 12,464,789 | ||||||||||||
Finland | — | 14,407,657 | — | 14,407,657 | ||||||||||||
Germany | — | 19,209,835 | — | 19,209,835 | ||||||||||||
Hong Kong | — | 18,129,726 | — | 18,129,726 | ||||||||||||
Ireland | — | 10,607,169 | — | 10,607,169 | ||||||||||||
Japan | — | 17,293,240 | — | 17,293,240 | ||||||||||||
Netherlands | — | 7,354,602 | — | 7,354,602 | ||||||||||||
South Africa | — | 2,280,034 | — | 2,280,034 | ||||||||||||
Spain | — | 24,543,536 | — | 24,543,536 | ||||||||||||
Switzerland | — | 26,678,210 | — | 26,678,210 | ||||||||||||
Taiwan | 13,174,700 | — | — | 13,174,700 | ||||||||||||
United Kingdom | — | 22,305,490 | — | 22,305,490 | ||||||||||||
United States | 284,862,805 | — | — | 284,862,805 | ||||||||||||
Investment Company | 3,804,976 | — | — | 3,804,976 | ||||||||||||
Total Assets | $307,888,321 | $198,300,843 | $— | $506,189,164 |
51
NOTES TO FINANCIAL STATEMENTS
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Total | |||||||||||||
International Opportunities Fund Assets: | ||||||||||||||||
Investments in Securities | ||||||||||||||||
Common Stocks | ||||||||||||||||
Argentina | $ 3,862,620 | $ — | $— | $ 3,862,620 | ||||||||||||
Australia | — | 2,327,428 | — | 2,327,428 | ||||||||||||
Austria | — | 2,129,948 | — | 2,129,948 | ||||||||||||
Belgium | — | 6,383,530 | — | 6,383,530 | ||||||||||||
Denmark | — | 5,814,344 | — | 5,814,344 | ||||||||||||
Finland | — | 6,072,846 | — | 6,072,846 | ||||||||||||
Germany | — | 7,651,601 | — | 7,651,601 | ||||||||||||
Hong Kong | — | 8,384,412 | — | 8,384,412 | ||||||||||||
India | 8,607,517 | — | — | 8,607,517 | ||||||||||||
Ireland | — | 4,152,763 | — | 4,152,763 | ||||||||||||
Japan | — | 27,018,164 | — | 27,018,164 | ||||||||||||
Netherlands | — | 8,142,362 | — | 8,142,362 | ||||||||||||
Norway | — | 2,732,744 | — | 2,732,744 | ||||||||||||
Singapore | — | 5,703,407 | — | 5,703,407 | ||||||||||||
South Africa | — | 7,490,644 | — | 7,490,644 | ||||||||||||
Spain | — | 8,050,799 | — | 8,050,799 | ||||||||||||
Sweden | — | 1,681,454 | — | 1,681,454 | ||||||||||||
Switzerland | — | 16,965,878 | — | 16,965,878 | ||||||||||||
Taiwan | 10,039,345 | 5,668,479 | — | 15,707,824 | ||||||||||||
Thailand | — | 2,723,889 | — | 2,723,889 | ||||||||||||
United Kingdom | — | 24,835,847 | — | 24,835,847 | ||||||||||||
Zambia | 2,352,609 | — | — | 2,352,609 | ||||||||||||
Investment Company | 1,978,377 | — | — | 1,978,377 | ||||||||||||
Rights/Warrants | 24,132 | — | — | 24,132 | ||||||||||||
Total Assets | $26,864,600 | $153,930,539 | $— | $180,795,139 |
Repurchase Agreements:
The Funds, may enter into repurchase agreements with counterparties whom the Advisor has deemed creditworthy, including primary dealers that report to the Federal Reserve Bank of New York or other large U.S. commercial banks or broker-dealers. These repurchase agreements are subject to the seller’s agreement to repurchase such securities at a mutually agreed upon date and price. The repurchase price generally equals the price paid by the Funds plus interest negotiated on the basis of current short-term rates.
Securities pledged by the dealers as collateral for repurchase agreements are held by a custodian bank until maturity of the repurchase agreement. The Funds have procedures to monitor additional collateral, if needed, to ensure that the daily market value of the collateral remains in excess of the market value of the repurchase agreement in the event of a default.
There were no repurchase agreements held during the period ended September 30, 2021.
Affiliated Investments:
The Funds invest in another Fund of the Trust (an “Affiliated Fund”), U.S. Government Money Market Fund-RBC Institutional Class 1, as a cash sweep vehicle. The income earned by the Funds from the Affiliated Fund for the period is disclosed in the Statement of Operations. The table below details the transactions of the Funds in the Affiliated Fund.
52
NOTES TO FINANCIAL STATEMENTS
Value March 31, 2021 | Purchases | Sales | Value September 30, 2021 | Dividends | ||||||||||||||||
Investments in U.S. Government Money Market Fund —RBC Institutional Class 1 | ||||||||||||||||||||
Emerging Markets Equity Fund | $ — | $441,981,330 | $341,148,263 | $100,833,067 | $6,331 | |||||||||||||||
Emerging Markets Value Equity Fund | 166,783 | 29,450,563 | 28,321,894 | 1,295,452 | 153 | |||||||||||||||
Global Opportunities Fund | 7,322,625 | 224,030,099 | 227,547,748 | 3,804,976 | 826 | |||||||||||||||
International Opportunities Fund | 2,839,826 | 20,086,890 | 20,948,339 | 1,978,377 | 248 |
Investment Transactions and Income:
Investment transactions are recorded on trade date. Dividend income is recorded on the ex- dividend date. In certain foreign markets where declaration of a dividend follows the ex-dividend date, the dividend will be recorded when the Fund is notified of the declaration date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Realized gains and losses from investment transactions are calculated based on the cost of the specific security (also known as identified cost basis). Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount using the effective yield method.
Expense, Investment Income and Gain/Loss Allocation:
Each Fund pays the expenses that are directly related to its operations, such as custodian fees or advisory fees. Expenses incurred by the Trust, such as trustee or legal fees, are allocated among each of the Funds in the Trust either proportionately based upon each Fund’s relative net assets or using another reasonable basis such as equally across all Funds in the Trust, depending on the nature of the 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
53
NOTES TO FINANCIAL STATEMENTS
permanent, they are reclassified within a Fund’s capital accounts based on their federal tax basis treatment. These differences are primarily due to differing book and tax treatments in the timing and/or treatment of the recognition of net investment income or gain and losses, including foreign currency gains and losses, foreign taxes and passive foreign investment companies (PFICs).
3. Agreements and Other Transactions with Affiliates:
The Trust has entered into investment advisory agreements with RBC GAM-US under which RBC GAM-US manages each Fund’s assets and furnishes related office facilities, equipment, research and personnel. The agreements require each Fund to pay RBC GAM-US a monthly fee based upon average daily net assets. Under the terms of the agreement, RBC GAM-US is entitled to receive fees based on a percentage of the average daily net assets of each of the Funds as follows:
Emerging Market Equity Fund | 0.80 | % | ||
Emerging Markets Value Equity Fund | 0.80 | % | ||
Global Opportunities Fund | 0.65 | % | ||
International Opportunities Fund | 0.70 | % |
RBC GAM-US has contractually agreed to waive fees and/or make payments in order to keep total operating expenses (excluding certain fees such as interest, taxes and acquired fund fees and expenses) of Class A, Class I and Class R6 shares of each Fund to the following levels:
Class A Annual Rate | Class I Annual Rate | Class R6 Annual Rate | ||||||||||
Emerging Markets Equity Fund | 1.13% | 0.88% | 0.88% | |||||||||
Emerging Markets Value Equity Fund | N/A | 0.95% | 0.88% | |||||||||
Global Opportunities Fund | 1.00% | 0.75% | 0.70% | |||||||||
International Opportunities Fund | 1.05% | 0.80% | 0.75% |
This expense limitation agreement is in place until July 31, 2023 (September 30, 2023 for Emerging Markets Equity Fund) and may not be terminated by RBC GAM-US prior to that date. The agreement shall continue for additional one-year terms unless terminated or revised by the Board at any time or by RBC GAM-US at the expiration of any one-year period. The Advisor is entitled to recoup from the Fund or class the fees and/or operating expenses waived or reimbursed during any of the previous 3 years, provided the Fund is able to do so and remain in compliance with the expense limitation in place at the time the fees were waived or expenses paid.
At September 30, 2021, the amounts subject to possible recoupment under the expense limitation agreement were:
FYE 3/31/19 | FYE 3/31/20 | FYE 3/31/21 | FYE 3/31/22 | Total | ||||||||||||||||
Emerging Markets Equity Fund | $734,977 | $1,590,349 | $1,751,584 | $1,487,968 | $5,564,878 | |||||||||||||||
Emerging Markets Value Equity Fund | 127,032 | 252,132 | 284,653 | 120,071 | 783,888 | |||||||||||||||
Global Opportunities Fund | 99,290 | 197,222 | 271,393 | 53,117 | 621,022 | |||||||||||||||
International Opportunities Fund | 138,247 | 266,018 | 410,189 | 171,124 | 985,578 |
For the six months ended September 30, 2021, the Advisor recouped $31,403 of expenses previously waived/reimbursed by the Emerging Markets Equity Fund.
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.
54
NOTES TO FINANCIAL STATEMENTS
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 September 30, 2021, the amount waived was $37,142, $820, $5,278 and $1,463 for the Emerging Markets Equity Fund, Emerging Markets Value Equity Fund, Global Opportunities Fund and International Opportunities Fund, respectively, and is included in expenses waived/reimbursed by Advisor in the Statements of Operations.
The Funds are sub-advised by RBC GAM-UK, which is a wholly-owned subsidiary of Royal Bank of Canada, which is the parent company of the Advisor. The Sub-Advisor is paid by the Advisor out of the advisory fee paid by the Funds to the Advisor.
RBC GAM-US serves as co-administrator to the Funds. BNY Mellon Investment Servicing (US) Inc. (”BNY Mellon“) serves as co-administrator and fund accounting agent. Services provided under the administrative services contract include providing day-to-day administration of matters related to the Funds, maintenance of their records and the preparation of reports. Under the terms of the administrative services contract, RBC GAM-US does not receive a fee for its role as co-administrator. BNY Mellon receives a fee for its services payable by each Fund based in part on each Fund’s average net assets. BNY Mellon’s fee is included with ”Accounting fees“ in the Statements of Operations.
Certain Officers and Trustees of the Trust are affiliated with the Advisor. Such Officers and Trustees receive no compensation from the Funds for serving in their respective roles.
The Trust currently pays each of the independent Trustees (Trustees of the Trust who are not directors, officers or employees of the Advisor, either Co-Administrator or Distributor) an annual retainer of $68,000. The Board Chairperson and Audit Committee Chairperson each receive an additional retainer of $2,500 annually, and all other trustees serving as Chair of a Board committee each receive an additional retainer of $1,000 annually. In addition, Independent Trustees receive a quarterly meeting fee of $6,500 for each in-person Board meeting attended, a meeting fee of $1,500 for each telephonic or Special Board meeting attended, a $1,500 fee for each Board committee meeting attended, and are reimbursed for all out-of-pocket expenses relating to attendance at such meetings. These amounts are included in the Statement of Operations in ”Trustees’ fees“.
In conjunction with the launch of each of the Funds or additional share classes, the Advisor invested seed capital to provide each Fund or share class with its initial investment assets. The table below shows, as of September 30, 2021, each Fund’s net assets, the shares of each Fund held by the Advisor, and the percent of total net assets represented by the Advisor’s investment.
Net Assets | Shares held by Advisor | % of Fund Net Assets | ||||||||||
Emerging Markets Value Equity Fund | $ | 74,954,750 | 543,106 | 7.8% | ||||||||
Global Opportunities Fund | $ | 506,453,656 | 659 | 0.0% | ||||||||
International Opportunities Fund | $ | 179,975,231 | 2,310 | 0.0% |
4. Fund Distribution:
Each of the Funds that offers Class A shares has adopted a Master Distribution 12b-1 Plan (the “Plan”) in which Quasar Distributors LLC (the “Distributor”) acts as the Funds’ distributor. The Plan permits each Fund to make payments for, or to reimburse the Distributor for, distribution-related costs and expenses of marketing shares of Class A covered under the Plan, and/or for providing shareholder services. The Plan does not apply to Class I and Class R6. The following chart shows the current Plan fee rate for Class A.
Class A | ||
12b-1 Plan Fee | 0.25%* |
* Under the 12b-1 plan, the maximum fee rate for Class A shares is 0.50%. Currently the Board has approved an annual limit of 0.25%.
55
NOTES TO FINANCIAL STATEMENTS
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 September 30, 2021, there were no fees waived by the Distributor.
For the period ended September 30, 2021, the Distributor received commissions of $3,668 front-end sales charges of Class A shares, of the Funds, of which $265 was paid to affiliated broker-dealers, and the remainder was either paid to unaffiliated broker-dealers or retained 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 September 30, 2021 were as follows:
Purchases | Sales | |||||||||||
Emerging Markets Equity Fund | $ | 442,926,469 | $ | 228,604,502 | ||||||||
Emerging Markets Value Equity Fund | 44,168,509 | 9,942,324 | ||||||||||
Global Opportunities Fund | 258,783,315 | 38,849,900 | ||||||||||
International Opportunities Fund | 35,289,975 | 29,739,531 |
6. Capital Share Transactions:
The Trust is authorized to issue an unlimited number of shares of beneficial interest (“shares outstanding”) without par value. Transactions in capital stock of the Funds are summarized on the following pages:
Emerging Markets Equity Fund | Emerging Markets Value Equity Fund | |||||||||||||||||||||||
For the Six Months Ended September 30, 2021 (Unaudited) | For the Year Ended March 31, 2021 | For the Six Months Ended September 30, 2021 (Unaudited) | For the Year Ended March 31, 2021 | |||||||||||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 56,219,836 | $ | 286,616,571 | $ | — | $ | — | ||||||||||||||||
Distributions reinvested | — | 162,966 | — | — | ||||||||||||||||||||
Cost of shares redeemed | (46,244,558 | ) | (18,777,237 | ) | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Change in Class A | $ | 9,975,278 | $ | 268,002,300 | $ | — | $ | — | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Class I | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 497,857,567 | $ | 663,616,450 | $ | 28,910,925 | $ | 29,825,722 | ||||||||||||||||
Distributions reinvested | — | 16,834,855 | — | 149,230 | ||||||||||||||||||||
Cost of shares redeemed | (217,071,572 | ) | (264,217,496 | ) | (1,520,885 | ) | (2,204,799 | ) | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Change in Class I | $ | 280,785,995 | $ | 416,233,809 | $ | 27,390,040 | $ | 27,770,153 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Class R6 | ||||||||||||||||||||||||
Proceeds from shares issued | $ | 39,692,405 | $ | 89,875,347 | $ | 6,900,000 | $ | — | ||||||||||||||||
Distributions reinvested | — | 2,307,638 | — | 86,448 | ||||||||||||||||||||
Cost of shares redeemed | (69,150,665 | ) | (17,376,284 | ) | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Change in Class R6 | $ | (29,458,260 | ) | $ | 74,806,701 | $ | 6,900,000 | $ | 86,448 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Change in net assets resulting from capital transactions | $ | 261,303,013 | $ | 759,042,810 | $ | 34,290,040 | $ | 27,856,601 | ||||||||||||||||
|
|
|
|
|
|
|
|
56
NOTES TO FINANCIAL STATEMENTS
Emerging Markets Equity Fund | Emerging Markets Value Equity Fund | |||||||||||||||||||||||
For the Six Months Ended September 30, 2021 (Unaudited) | For the Year Ended March 31, 2021 | For the Six Months Ended September 30, 2021 (Unaudited) | For the Year Ended March 31, 2021 | |||||||||||||||||||||
SHARE TRANSACTIONS: | ||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Issued | 3,900,398 | 19,139,830 | — | — | ||||||||||||||||||||
Reinvested | — | 11,750 | — | — | ||||||||||||||||||||
Redeemed | (3,212,286 | ) | (1,539,090 | ) | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Change in Class A | 688,112 | 17,612,490 | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Class I | ||||||||||||||||||||||||
Issued | 33,810,086 | 49,761,963 | 2,481,615 | 3,554,158 | ||||||||||||||||||||
Reinvested | — | 1,193,115 | — | 14,908 | ||||||||||||||||||||
Redeemed | (14,809,080 | ) | (20,357,430 | ) | (130,300 | ) | (194,642 | ) | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Change in Class I | 19,001,006 | 30,597,648 | 2,351,315 | 3,374,424 | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Class R6 | ||||||||||||||||||||||||
Issued | 2,670,384 | 6,619,216 | 623,061 | — | ||||||||||||||||||||
Reinvested | — | 162,854 | — | 8,894 | ||||||||||||||||||||
Redeemed | (4,762,441 | ) | (1,419,187 | ) | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Change in Class R6 | (2,092,057 | ) | 5,362,883 | 623,061 | 8,894 | |||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Change in shares resulting from capital transactions | 17,597,061 | 53,573,021 | 2,974,376 | 3,383,318 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
57
NOTES TO FINANCIAL STATEMENTS
Global Opportunities Fund | International Opportunities Fund | |||||||||||||||
For the Six Months Ended September 30, 2021 (Unaudited) | For the Year Ended March 31, 2021 | For the Six Months Ended September 30, 2021 (Unaudited) | For the Year Ended March 31, 2021 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | — | $ | 3,774 | $ | 10,100 | $ | 1,992,961 | ||||||||
Distributions reinvested | — | 318 | — | 621 | ||||||||||||
Cost of shares redeemed | — | (4,293 | ) | — | (2,088,550 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A | $ | — | $ | (201 | ) | $ | 10,100 | $ | (94,968 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 154,568,607 | $ | 95,929,845 | $ | 16,858,440 | $ | 77,668,834 | ||||||||
Distributions reinvested | — | 1,908,421 | — | 7,796,893 | ||||||||||||
Cost of shares redeemed | (61,410,521 | ) | (44,649,849 | ) | (13,512,030 | ) | (41,717,820 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I | $ | 93,158,086 | $ | 53,188,417 | $ | 3,346,410 | $ | 43,747,907 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Proceeds from shares issued | $ | 146,049,535 | $ | 134,316,152 | $ | — | $ | — | ||||||||
Distributions reinvested | — | 2,077,066 | — | 1,024 | ||||||||||||
Cost of shares redeemed | (18,088,437 | ) | (31,519,011 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 | $ | 127,961,098 | $ | 104,874,207 | $ | — | $ | 1,024 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from capital transactions | $ | 221,119,184 | $ | 158,062,423 | $ | 3,356,510 | $ | 43,653,963 | ||||||||
|
|
|
|
|
|
|
| |||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | — | 232 | 753 | 209,618 | ||||||||||||
Reinvested | — | 17 | — | 50 | ||||||||||||
Redeemed | — | (225 | ) | — | (208,837 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A | — | 24 | 753 | 831 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 7,155,123 | 5,089,835 | 1,231,330 | 7,550,228 | ||||||||||||
Reinvested | — | 101,296 | — | 624,751 | ||||||||||||
Redeemed | (2,854,713 | ) | (2,482,577 | ) | (995,388 | ) | (3,751,495 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I | 4,300,410 | 2,708,554 | 235,942 | 4,423,484 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Class R6 | ||||||||||||||||
Issued | 6,909,300 | 7,774,183 | — | — | ||||||||||||
Reinvested | — | 109,898 | — | 82 | ||||||||||||
Redeemed | (852,656 | ) | (1,772,397 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class R6 | 6,056,644 | 6,111,684 | — | 82 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in shares resulting from capital transactions | 10,357,054 | 8,820,262 | 236,695 | 4,424,397 | ||||||||||||
|
|
|
|
|
|
|
|
58
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.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
As of September 30, 2021, the tax cost of investments and the breakdown of unrealized appreciation (depreciation) for each Fund was as follows:
Tax Cost Of Investments | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) | |||||||||||||
Emerging Markets Equity Fund | $ | 2,574,357,334 | $ | 352,561,884 | $ | (193,006,817 | ) | $ | 159,555,067 | |||||||
Emerging Markets Value Equity Fund | 72,770,522 | 8,756,497 | (6,127,131 | ) | 2,629,366 | |||||||||||
Global Opportunities Fund | 470,775,259 | 45,554,272 | (10,140,367 | ) | 35,413,905 | |||||||||||
International Opportunities Fund | 140,927,902 | 40,580,980 | (713,743 | ) | 39,867,237 |
The difference between book basis and tax basis unrealized appreciation/depreciation is attributable to the tax deferral of losses on wash sales and passive foreign investment company mark-to-market adjustment.
The tax character of distributions during the year ended March 31, 2021 were as follows:
Distributions Paid From | ||||||||||||||||||
Ordinary Income | Net Long Term Capital Gains | Total Taxable Distributions | Total Distributions Paid | |||||||||||||||
Emerging Markets Equity Fund | $ | 20,986,884 | $ | — | $ | 20,986,884 | $ | 20,986,884 | ||||||||||
Emerging Markets Value Equity Fund | 235,678 | — | 235,678 | 235,678 | ||||||||||||||
Global Opportunities Fund | 322,897 | 3,754,938 | 4,077,835 | 4,077,835 | ||||||||||||||
International Opportunities Fund | 1,655,425 | 7,920,505 | 9,575,930 | 9,575,930 |
Total distributions paid may differ from the Statements of Changes in Net Assets because distributions are recognized when actually paid for tax purposes.
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 March 31, 2022.
During the year ended March 31, 2021, Emerging Markets Equity Fund utilized $14,655,025 and Emerging Markets Value Equity Fund utilized $51,631 of capital loss carryforwards.
As of March 31, 2021, the Funds did not have any capital loss carryforwards for federal income tax purposes except Emerging Markets Value Equity Fund had a short-term capital loss carryforward of $424,138 and a long-term capital loss carryforward of $204,297 available to offset future realized capital gains in accordance with the Regulated Investment Company Modernization Act of 2010. Emerging Markets Value Equity Fund’s amount includes losses in connection with an ownership change, therefore utilization of capital loss carryover is subject to annual limitations. These capital loss carryforwards are not subject to expiration.
59
NOTES TO FINANCIAL STATEMENTS
Under current tax law, capital losses realized after October 31 and ordinary losses after December 31 of a Fund’s fiscal year may be deferred and treated as occurring on the first business day of the following fiscal year for tax purposes, which will be treated as arising on the first business day of the year ended March 31, 2022.
8. Market Timing:
The Trust strongly discourages attempts at market timing by Fund shareholders. Prior to June 9, 2021, each Fund charged a redemption fee of 2% of the value of the shares redeemed or exchanged within 30 days of purchase. In addition, the Trust may limit the number of exchanges that may be made between Funds to five (5) per calendar year. When assessed, the redemption fee was deducted from the redemption proceeds and retained by the Fund, not by the Advisor. This redemption fee was not charged in cases where, for example, the redemption resulted 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 September 30, 2021, redemption fees were collected by the Emerging Markets Equity Fund and International Opportunities Fund in the amount of $9,803 and $10 respectively. There were no redemption fees collected by the other funds. Redemption fees collected by the Funds are included in the cost of shares redeemed on the Statements of Changes in Net Assets.
9. Line of Credit
Emerging Markets Equity Fund, Global Opportunities Fund and International Opportunities Fund (“Participating Funds”) are participants in a single uncommitted, unsecured $30,000,000 line of credit with The Bank of New York Mellon, the Funds’ custodian, to be used to fund shareholder redemptions requests and for other short-term temporary or emergency general business purposes. The line of credit has a scheduled termination date of June 17, 2022. Interest is charged on borrowings made under this line of credit at a rate per annum equal 1.25% plus the higher of the Federal Funds Effective Rate or one-month LIBOR rate. An undrawn fee of 0.08% per annum on the daily amount of the excess of $30,000,000 less the aggregate principal amount of advances outstanding is accrued and is due on the last business day of each calendar quarter. Each Participating Fund shall each pay its pro rata share of this fee based on its pro rata net assets at the time the fee is due and payable. Since each Participating Fund participates in the line of credit, there is no assurance that an individual fund will have access to all or any part of the $30,000,000 at any particular time. During the period ended September 30, 2021, none of the Funds borrowed under the line of credit.
10. Significant Risks
Shareholder concentration risk:
As of September 30, 2021, the following Funds had omnibus accounts which each owned more than 10% of a Fund’s outstanding shares as shown below:
# of Omnibus Accounts | % of Fund | |||||||
Emerging Markets Equity Fund | 2 | 25.9% | ||||||
Emerging Markets Value Equity Fund | 1 | 17.4% | ||||||
Global Opportunities Fund | 1 | 11.6% | ||||||
International Opportunities Fund | 3 | 94.7% |
In addition, two unaffiliated shareholders owned in aggregate 21.6% of Global Opportunities Fund and two unaffiliated shareholders owned in aggregate 41.1% of Emerging Markets Value Equity Fund as of September 30, 2021. Significant transactions by these shareholders may impact the Funds’ performance.
60
NOTES TO FINANCIAL STATEMENTS
Market risk:
One or more markets in which a Fund invests may go down in value, sometimes sharply and unpredictably, and the value of a Fund’s portfolio securities may fall or fail to rise. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. In addition, global economies and financial markets are becoming increasingly interconnected, and political, economic and other conditions and events (including, but not limited to, natural disasters, pandemics, epidemics, and social unrest) in one country, region, or financial market may adversely impact issuers in a different country, region or financial market. Furthermore, the occurrence of, among other events, natural or man-made disasters, severe weather or geological events, fires, floods, earthquakes, outbreaks of disease (such as COVID-19, avian influenza or H1N1/09), epidemics, pandemics, malicious acts, cyber-attacks, terrorist acts or the occurrence of climate change, may also adversely impact the performance of a Fund. Such events could adversely impact issuers, markets and economies over the short- and long-term, including in ways that cannot necessarily be foreseen. A Fund could be negatively impacted if the value of a portfolio holding were harmed by such political or economic conditions or events. Moreover, such negative political and economic conditions and events could disrupt the processes necessary for a Fund’s operations.
Industry and sector focus risk:
At times the Funds may increase the relative emphasis of its investments in a particular industry or sector. The prices of securities of issuers in a particular industry or sector may be more susceptible to fluctuations due to changes in economic or business conditions, government regulations, availability of basic resources or supplies, or other events affect that industry or sector more than securities of issuers 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.
61
The Funds offer three share classes: Class A, Class I and Class R6.
Class A
Class A shares, offered by Emerging Markets Equity Fund, Global Opportunities Fund and International Opportunities Fund are available for purchase primarily through investment advisors, broker-dealers, banks and other financial services intermediaries. Class A shares of the Funds are currently subject to a maximum upfront sales charge of 5.75% and a 1.00% CDSC for redemption within 12 months of a $1 million or greater purchase. Class A shares currently include a 0.25% (25 bps) annual 12b-1 service and distribution fee.
Class I
Class I shares are available in all of the Funds and are intended for investors meeting certain minimum investment thresholds. This share class does not have an up-front sales charge (load) or a 12b-1 service and distribution fee.
Class R6
Class R6 shares are available in all Funds and are intended for investors meeting certain minimum investment thresholds. This share class does not have an up-front sales charge (load) or a 12b-1 service and distribution fee.
62
Shareholder Expense Examples
As a shareholder of 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 April 1, 2021 through September 30, 2021.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Beginning Account Value 4/1/21 | Ending Account Value 9/30/21 | Expenses Paid During Period* 4/1/21–9/30/21 | Annualized Expense Ratio During Period 4/1/21–9/30/21 | |||||||||||||
Emerging Markets Equity Fund | ||||||||||||||||
Class A | $1,000.00 | $ 920.10 | $5.44 | 1.13% | ||||||||||||
Class I | 1,000.00 | 920.90 | 4.24 | 0.88% | ||||||||||||
Class R6 | 1,000.00 | 921.20 | 4.24 | 0.88% | ||||||||||||
Emerging Markets Value Equity Fund |
| |||||||||||||||
Class I | 1,000.00 | 970.60 | 4.69 | 0.95% | ||||||||||||
Class R6 | 1,000.00 | 971.60 | 4.35 | 0.88% | ||||||||||||
Global Opportunities Fund | ||||||||||||||||
Class A | 1,000.00 | 1,085.60 | 5.23 | 1.00% | ||||||||||||
Class I | 1,000.00 | 1,086.60 | 3.92 | 0.75% | ||||||||||||
Class R6 | 1,000.00 | 1,086.80 | 3.66 | 0.70% | ||||||||||||
International Opportunities Fund | ||||||||||||||||
Class A | 1,000.00 | 1,033.30 | 5.35 | 1.05% | ||||||||||||
Class I | 1,000.00 | 1,034.70 | 4.08 | 0.80% | ||||||||||||
Class R6 | 1,000.00 | 1,034.50 | 3.83 | 0.75% |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 183/365 (to reflect one half year period).
63
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 4/1/21 | Ending Account Value 9/30/21 | Expenses Paid During Period* 4/1/21-9/30/21 | Annualized Expense Ratio During Period 4/1/21-9/30/21 | |||||||||||||
Emerging Markets Equity Fund | ||||||||||||||||
Class A | $1,000.00 | $1,019.40 | $5.72 | 1.13% | ||||||||||||
Class I | 1,000.00 | 1,020.66 | 4.46 | 0.88% | ||||||||||||
Class R6 | 1,000.00 | 1,020.66 | 4.46 | 0.88% | ||||||||||||
Emerging Markets Value Equity Fund |
| |||||||||||||||
Class I | 1,000.00 | 1,020.31 | 4.81 | 0.95% | ||||||||||||
Class R6 | 1,000.00 | 1,020.66 | 4.46 | 0.88% | ||||||||||||
Global Opportunities Fund | ||||||||||||||||
Class A | 1,000.00 | 1,020.05 | 5.06 | 1.00% | ||||||||||||
Class I | 1,000.00 | 1,021.31 | 3.80 | 0.75% | ||||||||||||
Class R6 | 1,000.00 | 1,021.56 | 3.55 | 0.70% | ||||||||||||
International Opportunities Fund | ||||||||||||||||
Class A | 1,000.00 | 1,019.80 | 5.32 | 1.05% | ||||||||||||
Class I | 1,000.00 | 1,021.06 | 4.05 | 0.80% | ||||||||||||
Class R6 | 1,000.00 | 1,021.31 | 3.80 | 0.75% |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 183/365 (to reflect one half year period).
64
In September 2021, after evaluating the services provided by RBC Global Asset Management (U.S.) Inc. (the “Advisor”) and RBC Global Asset Management (UK) Limited (the “Sub-Advisor”) and reviewing the performance, fees, and expenses of the Funds, the RBC Funds Board of Trustees determined to approve the continuation of the investment advisory agreements with the Advisor and sub-advisory agreements with the Sub-Advisor (the investment advisory and sub-advisory agreements, collectively, being the “Agreements”) for each Fund for an additional year.
As part of their review of the Agreements, the Trustees requested and considered information regarding the services performed by the Advisor and Sub-Advisor; the staffing and qualifications of the personnel responsible for operating and managing the Funds; and the Funds’ performance, fees, and expenses. The Trustees considered information provided at regular quarterly Board and Committee meetings throughout the year as well as information presented at both a special meeting held to review requested material related to the proposed renewals and a regular meeting at which the proposed renewals were considered. The information included material provided by the Advisor, as well as reports prepared by Broadridge Financial Solutions, Inc., an independent statistical compilation company providing comparative fee and expense information and comparative performance information for the Funds. The Board reviewed certain changes to the Funds that had been made in the prior year, including the impending liquidation of the RBC Emerging Markets Small Cap Equity Fund. In connection with their deliberations, the independent Trustees were advised by independent legal counsel with regard to the materials and their responsibilities under relevant laws and regulations.
The Trustees met with representatives from the Advisor’s senior management teams, as well as senior investment professionals, to discuss the information and the ongoing management of the Funds. The Trustees reviewed the nature, quality, and extent of the services provided to the Funds by the Advisor and Sub-Advisor, including information as to each Fund’s performance relative to appropriate index benchmarks as well as their respective Morningstar categories. For several of the Funds, the Board also reviewed comparative information with respect to custom peer groups designed to align more closely with the Funds’ specific investment strategies.
The Trustees also reviewed information on the response to the continuing COVID-19 pandemic by each of the Advisor and the Sub-Advisor and the measures taken to ensure that the services provided to the Funds were not impacted.
The Board then reviewed the performance of each Fund vs. relevant securities benchmarks and fund peer groups. With regard to the RBC Global Opportunities Fund, the Board noted the recent change in the fund’s Morningstar category, which aligned more closely to the Fund’s strategy and performance.
The Trustees reviewed the Funds’ expense structure and advisory fees, including information regarding other client accounts advised or sub-advised by the Sub-Advisor with investment objectives similar to those of the Funds, including advisory fees paid and the reasons for the differences in fees. The Trustees considered, and viewed favorably, the Advisor’s contractual agreement to subsidize Fund expenses, noting that all fee waivers were now being borne by the Advisor. The Trustees evaluated profitability data for the Advisor and Sub-Advisor and considered information regarding other benefits the Advisor and its affiliates derived from their relationships with the Funds, including soft dollars and other fall-out benefits. The Trustees noted that advisory fees and expense ratios were competitive and, in particular, that none of the Funds had total net expenses below the median of its peer group.
In considering the nature and quality of services provided by the Sub-Advisor to the Funds, the Trustees considered the Sub-Advisor’s investment strategies and demonstrated capabilities with respect to fundamental analysis, its significant expertise with regard to evaluating environmental, social and governance (ESG) factors, and geographic expertise. The Trustees also considered the qualifications and experience of the Sub-Advisor’s staff as well as its operational and compliance structure and systems, and the Advisor’s expertise in coordinating and overseeing the investment management and related operations of the Funds. The Trustees expressed confidence in the investment teams of the Advisor and Sub-Advisor and were satisfied with the nature, extent, and quality of the advisory and other services provided to the Funds. In addition, the Trustees reviewed favorably the Advisor management team’s initiative to institute portfolio engineering risk analytics as part of the investment process.
65
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED)
Based upon their review, the Trustees concluded that the Funds’ advisory and sub-advisory fees payable to the Advisor and Sub-Advisor, respectively, were fair and reasonable in light of: the nature and quality of the services provided; the fees charged with respect to other comparable funds sub-advised by the Sub-Advisor; the complex nature of the jurisdictions where the underlying investments originate, which span a number of emerging market countries; the value of the Funds to investors; and the size of the accounts. The Trustees determined that the fees were within the range of what might have been negotiated at arms’ length. The Trustees approved the Agreements and expense limitation arrangements for each Fund for an additional year. In arriving at their collective decision to approve the Agreements, the Trustees did not assign relative weights to the factors discussed above or deem any one or group of them to be controlling in and of itself.
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RBC Funds
P.O. Box 701
Milwaukee, WI 53201-0701
800-422-2766
www.rbcgam.com
Performance data represents past performance and does not guarantee future results. The principal value of an investment and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
This report and the financial statements contained herein are provided for the information of RBC Funds shareholders. This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus, which contains information concerning investment objectives, risks, charges and expenses of the funds. Please read the prospectus carefully before investing.
This report and the financial statements contained herein are not intended to be a forecast of future events, a guarantee of future results, or investment advice. There is no assurance that certain securities will remain in or out of each fund’s portfolio. The views expressed in this report reflect those of the portfolio managers through the period ended September 30, 2021.
NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
RBC Global Asset Management (U.S.) Inc. serves as investment advisor for the RBC Funds. RBC Funds are distributed by Quasar Distributors LLC.
The RBC Funds are pleased to offer shareholder reports printed entirely on Forest Stewardship Council® certified paper. FSC® certification ensures that the paper used in this report contains fiber from well-managed and responsibly harvested forests that meet strict environmental and socioeconomic standards.
RBCF-EM SAR 09-21
Semi-Annual Report For the six months ended September 30, 2021 RBC Short Duration Fixed Income Fund RBC Ultra-Short Fixed Income Fund
RBC Funds
| ||||||||||
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.com. | ||||||||||
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.com; and (iii) on the Securities and Exchange Commission’s (the “Commission”) website at http://www.sec.gov. | ||||||||||
Each year the Trust files its proxy voting record for the twelve-month period ended June 30 with the SEC on Form N-PX no later than August 31. The records can be obtained on the SEC’s website at www.sec.gov and without charge by calling the Funds at 1-800-422-2766. | ||||||||||
A schedule of each Fund’s portfolio holdings is filed with the Commission for the first and third quarters of each fiscal year on Form N-PORT. This information is available on the Commission’s website at http://www.sec.gov and on the Funds’ website at www.rbcgam.com. | ||||||||||
Table of | 1 | |||||||||
Contents | 2 | |||||||||
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4 | ||||||||||
5 | ||||||||||
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23 | ||||||||||
24 | ||||||||||
26 | ||||||||||
30 | ||||||||||
41 | ||||||||||
42 | ||||||||||
44 | ||||||||||
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RBC Global Asset Management (U.S.) Inc.(“RBC GAM-US”) serves as the investment advisor to the RBC Funds. RBC GAM-US employs a team approach to the management of the Funds, with no individual team member being solely responsible for the investment decisions. Each Fund’s management team has access to RBC GAM-US’s investment research and other money management resources.
| ||||||||||||
Brian Svendahl, CFA
Managing Director, Senior Portfolio Manager 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 his current position. Prior to joining RBC GAM-US, he held several risk management, research and trading positions at Wells Fargo. Brian’s experience also includes liability management and implementing balance sheet hedging strategies. He first started in the investment industry in 1992. He earned a BS in economics from the University of Minnesota and a BBA in finance and an MBA from the University of Minnesota Carlson School of Management. Brian is a CFA charterholder. |
Brian Svendahl, CFA | |||||||||||
Brandon T. Swensen, CFA
Vice President, Co-Head, Senior Portfolio Manager Brandon Swensen oversees RBC GAM-US’s fixed income research, portfolio management and trading. In addition to shaping the firm’s overall fixed income philosophy and process, he is a portfolio manager for the Funds and several cash management and core solutions. Brandon joined RBC GAM-US in 2000 and most recently was a portfolio manager on the mortgage and government team before being promoted to his current position. 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. |
Brandon T. Swensen, CFA | |||||||||||
1
1 Year | 3 Year | 5 Year | Since Inception(a) | Net Expense Ratio(b)(c) | Gross Expense Ratio(b)(c) | |||||||||||||||||||
Average Annual Total Returns as of September 30, 2021 (Unaudited) |
| |||||||||||||||||||||||
RBC Short Duration Fixed Income Fund | ||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||
- At Net Asset Value | 1.02% | 3.20% | 2.36% | 2.15% | 0.45% | 1.58% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
- At Net Asset Value | 1.11% | 3.27% | 2.44% | 2.24% | 0.35% | 0.68% | ||||||||||||||||||
ICE BofAML 1-3 | ||||||||||||||||||||||||
Year U.S. Corporate & Government Index(d) | 0.35% | 2.90% | 1.92% | 1.64% | ||||||||||||||||||||
RBC Ultra-Short Fixed Income Fund |
| |||||||||||||||||||||||
Class A | ||||||||||||||||||||||||
- At Net Asset Value | 0.93% | 2.38% | 2.04% | 1.73% | 0.38% | 0.81% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
- At Net Asset Value | 0.93% | 2.49% | 2.15% | 1.81% | 0.28% | 0.77% | ||||||||||||||||||
ICE BofAML U.S. | ||||||||||||||||||||||||
1-Year Treasury Bill Index(d) | 0.21% | 1.85% | 1.47% | 1.11% |
Performance data quoted represents past performance. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance quoted. 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.com. Please see footnotes below.
(a) | The inception date (commencement date) is March 3, 2014 for Class A shares and December 30, 2013 for Class I shares. The performance in the table for the Class A shares prior to March 3, 2014 reflects the performance of the Class I shares since the Fund’s inception. |
(b) | The advisor has contractually agreed to waive fees and/or make payments in order to keep total operating expenses of the Fund to the levels listed under net expense ratio until July 31, 2023. |
(c) | The Funds’ expenses reflect the most recent fiscal year ended March 31, 2021. |
(d) | Each of the comparative indices is a widely recognized market value weighted measure of the return of securities, but do not include sales fees or operating expenses. You cannot invest directly in indices. |
The ICE BofAML 1-3 Year US Corporate & Government Index tracks the performance of U.S. dollar-denominated, investment grade debt publicly issued in the U.S. domestic market, including U.S. Treasury, U.S. agency, foreign government, supranational, and corporate securities with a remaining term to final maturity less than three years. You cannot invest directly in an index.
The ICE BofAML US 1-Year Treasury Bill Index comprises a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled into a newly selected issue. The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to, but not beyond, one year from the rebalancing date. You cannot invest directly in an index.
2
3
4
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Short Duration Fixed Income Fund
|
September 30, 2021 (Unaudited) |
Principal Amount | Value | |||||
Corporate Bonds — 67.45% | ||||||
Basic Materials — 2.87% | ||||||
$350,000 | DuPont de Nemours, Inc., (LIBOR USD 3-Month + 1.110%), 1.24%, 11/15/23(a) | $ | 356,607 | |||
250,000 | International Flavors & Fragrances, Inc., 0.70%, 9/15/22(b) | 250,720 | ||||
100,000 | International Flavors & Fragrances, Inc., 1.23%, 10/1/25(b) | 99,152 | ||||
200,000 | Nutrien Ltd., 3.15%, 10/1/22 | 204,148 | ||||
325,000 | Westlake Chemical Corp., 0.88%, 8/15/24 | 325,262 | ||||
|
| |||||
1,235,889 | ||||||
|
| |||||
Communications — 3.74% | ||||||
175,000 | AT&T, Inc., 0.90%, 3/25/24 | 175,240 | ||||
400,000 | Charter Communications Operating LLC / Charter Communications Operating Capital, 4.46%, 7/23/22 | 410,131 | ||||
250,000 | Qwest Corp., 6.75%, 12/1/21 | 252,203 | ||||
500,000 | Videotron Ltd., 5.38%, 6/15/24(b) | 545,416 | ||||
196,000 | Walt Disney Co. (The), 7.75%, 1/20/24 | 226,535 | ||||
|
| |||||
1,609,525 | ||||||
|
| |||||
Consumer, Cyclical — 5.34% | ||||||
200,000 | 7-Eleven, Inc., 0.80%, 2/10/24(b) | 199,881 | ||||
175,000 | Brunswick Corp., 0.85%, 8/18/24 | 174,920 | ||||
350,000 | Daimler Finance North America LLC, 0.75%, 3/1/24(b) | 350,086 | ||||
500,000 | Ford Motor Credit Co. LLC, 3.66%, 9/8/24 | 517,839 | ||||
200,000 | General Motors Financial Co., Inc., 3.45%, 1/14/22 | 201,181 | ||||
165,000 | General Motors Financial Co., Inc., 4.00%, 1/15/25 | 178,457 | ||||
150,000 | General Motors Financial Co., Inc., 4.15%, 6/19/23 | 158,493 | ||||
250,000 | Lennar Corp., 4.75%, 11/15/22 | 259,045 | ||||
260,000 | Volkswagen Group of America Finance LLC, 0.88%, 11/22/23(b) | 261,152 | ||||
|
| |||||
2,301,054 | ||||||
|
| |||||
Consumer, Non-cyclical — 8.72% | ||||||
400,000 | AbbVie, Inc., 3.25%, 10/1/22 | 408,692 | ||||
250,000 | AbbVie, Inc., 3.45%, 3/15/22 | 252,206 | ||||
125,000 | Becton Dickinson and Co., (LIBOR USD 3-Month + 1.030%), 1.15%, 6/6/22(a) | 125,717 | ||||
182,000 | Becton Dickinson and Co., 3.36%, 6/6/24 | 193,472 | ||||
350,000 | Cigna Corp., (LIBOR USD 3-Month + 0.890%), 1.02%, 7/15/23(a) | 354,515 | ||||
275,000 | Conagra Brands, Inc., 0.50%, 8/11/23 | 275,019 | ||||
14,000 | CVS Health Corp., 3.70%, 3/9/23 | 14,619 | ||||
250,000 | EMD Finance LLC, 3.25%, 3/19/25(b) | 266,586 | ||||
500,000 | HCA, Inc., 5.88%, 5/1/23 | 536,707 | ||||
250,000 | Health Care Service Corp. A Mutual Legal Reserve Co., 1.50%, 6/1/25(b) | 253,607 | ||||
175,000 | Humana, Inc., 0.65%, 8/3/23 | 175,096 | ||||
400,000 | JDE Peet’s NV, 0.80%, 9/24/24(b) | 398,939 |
5
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Short Duration Fixed Income Fund (cont.)
|
September 30, 2021 (Unaudited) |
Principal Amount | Value | |||||
$275,000 | PerkinElmer, Inc., 0.85%, 9/15/24 | $ | 274,950 | |||
225,000 | Viatris, Inc., 1.13%, 6/22/22(b) | 226,125 | ||||
|
| |||||
3,756,250 | ||||||
|
| |||||
Energy — 8.54% | ||||||
250,000 | Cheniere Energy Partners LP, 5.63%, 10/1/26 | 257,032 | ||||
225,000 | Enbridge, Inc., 0.55%, 10/4/23 | 225,134 | ||||
500,000 | Enbridge, Inc., 2.50%, 1/15/25 | 520,396 | ||||
250,000 | Energy Transfer LP, 4.50%, 4/15/24 | 270,483 | ||||
200,000 | Kinder Morgan Energy Partners LP, 4.25%, 9/1/24 | 217,547 | ||||
250,000 | Kinder Morgan, Inc., 4.30%, 6/1/25 | 276,059 | ||||
250,000 | ONEOK Partners LP, 5.00%, 9/15/23 | 267,678 | ||||
350,000 | ONEOK, Inc., 4.25%, 2/1/22 | 350,992 | ||||
275,000 | Pioneer Natural Resources Co., 0.75%, 1/15/24 | 274,616 | ||||
500,000 | Plains All American Pipeline LP / PAA Finance Corp., 3.65%, 6/1/22 | 506,648 | ||||
500,000 | Williams Cos., Inc. (The), 3.35%, 8/15/22 | 509,146 | ||||
|
| |||||
3,675,731 | ||||||
|
| |||||
Financial — 19.84% | ||||||
350,000 | American Tower Corp., REIT, 3.50%, 1/31/23 | 364,285 | ||||
500,000 | American Tower Corp., REIT, 5.00%, 2/15/24 | 549,223 | ||||
250,000 | Athene Global Funding, 1.61%, 6/29/26(b) | 249,722 | ||||
125,000 | Athene Global Funding, 1.73%, 10/2/26(b) | 124,896 | ||||
400,000 | Bank of America Corp., 3.00%, 12/20/23(c) | 412,135 | ||||
500,000 | Barclays Plc, 3.68%, 1/10/23 | 504,375 | ||||
550,000 | BNP Paribas SA, MTN, 3.50%, 3/1/23(b) | 573,246 | ||||
149,000 | Camden Property Trust, REIT, 4.88%, 6/15/23 | 158,172 | ||||
250,000 | CIT Group, Inc., 4.75%, 2/16/24 | 267,225 | ||||
350,000 | Citigroup, Inc., (SOFR RATE + 0.770%), 0.82%, 6/9/27(a) | 350,532 | ||||
350,000 | Citigroup, Inc., 4.04%, 6/1/24(c) | 370,190 | ||||
300,000 | Cooperatieve Rabobank UA, (LIBOR USD 3-Month + 0.480%), 0.60%, 1/10/23(a) | 301,566 | ||||
250,000 | Cooperatieve Rabobank UA, 3.95%, 11/9/22 | 259,477 | ||||
500,000 | Credit Agricole SA, 3.75%, 4/24/23(b) | 525,485 | ||||
350,000 | Credit Suisse Group AG, 3.57%, 1/9/23(b) | 352,866 | ||||
275,000 | Crown Castle International Corp., REIT, 1.35%, 7/15/25 | 276,063 | ||||
200,000 | DNB Bank ASA, 1.54%, 5/25/27(b),(c) | 200,018 | ||||
250,000 | Goldman Sachs Group, Inc. (The), 0.67%, 3/8/24(c) | 250,310 | ||||
250,000 | Goldman Sachs Group, Inc. (The), GMTN, 2.91%, 7/24/23(c) | 254,838 | ||||
400,000 | Goldman Sachs Group, Inc. (The), Series VAR, 0.63%, 11/17/23(c) | 400,332 | ||||
200,000 | HSBC Holdings Plc, 0.98%, 5/24/25(c) | 199,568 | ||||
250,000 | HSBC Holdings Plc, 3.60%, 5/25/23 | 262,839 | ||||
200,000 | JPMorgan Chase & Co., (LIBOR USD 3-Month + 0.890%), 1.03%, 7/23/24(a) | 202,608 | ||||
490,000 | JPMorgan Chase & Co., 3.21%, 4/1/23(c) | 496,846 |
6
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Short Duration Fixed Income Fund (cont.)
|
September 30, 2021 (Unaudited) |
Principal Amount | Value | |||||
$375,000 | Lloyds Banking Group Plc, 2.91%, 11/7/23(c) | $ | 384,733 | |||
250,000 | Morgan Stanley, GMTN, 2.75%, 5/19/22 | 254,030 | ||||
|
| |||||
8,545,580 | ||||||
|
| |||||
Industrial — 5.46% | ||||||
350,000 | Agilent Technologies, Inc., 3.88%, 7/15/23 | 369,093 | ||||
200,000 | Boeing Co. (The), 1.43%, 2/4/24 | 200,286 | ||||
150,000 | Boeing Co. (The), 2.20%, 2/4/26 | 151,188 | ||||
300,000 | CNH Industrial Capital LLC, 1.45%, 7/15/26 | 298,442 | ||||
290,000 | General Electric Co., MTN, 5.55%, 1/5/26 | 339,212 | ||||
300,000 | Huntington Ingalls Industries, Inc., 0.67%, 8/16/23(b) | 300,004 | ||||
425,000 | Teledyne Technologies, Inc., 0.95%, 4/1/24 | 425,444 | ||||
250,000 | Trane Technologies Luxembourg Finance SA, 3.55%, 11/1/24 | 268,565 | ||||
|
| |||||
2,352,234 | ||||||
|
| |||||
Technology — 5.63% | ||||||
300,000 | Dell International LLC / EMC Corp., 5.45%, 6/15/23 | 321,961 | ||||
375,000 | Leidos, Inc., 2.95%, 5/15/23 | 388,226 | ||||
375,000 | Microchip Technology, Inc., 0.97%, 2/15/24(b) | 375,128 | ||||
100,000 | Microchip Technology, Inc., 0.98%, 9/1/24(b) | 99,895 | ||||
250,000 | NXP BV / NXP Funding LLC, 4.63%, 6/1/23(b) | 266,094 | ||||
100,000 | NXP BV / NXP Funding LLC / NXP USA, Inc., 2.70%, 5/1/25(b) | 104,526 | ||||
250,000 | Open Text Corp., 5.88%, 6/1/26(b) | 258,753 | ||||
225,000 | Roper Technologies, Inc., 2.35%, 9/15/24 | 235,458 | ||||
125,000 | Skyworks Solutions, Inc., 0.90%, 6/1/23 | 125,227 | ||||
250,000 | VMware, Inc., 1.00%, 8/15/24 | 250,849 | ||||
|
| |||||
2,426,117 | ||||||
|
| |||||
Utilities — 7.31% | ||||||
400,000 | American Electric Power Co., Inc., Series M, 0.75%, 11/1/23 | 400,019 | ||||
275,000 | CenterPoint Energy Resources Corp., 0.70%, 3/2/23 | 275,005 | ||||
250,000 | CenterPoint Energy, Inc., 1.45%, 6/1/26 | 250,129 | ||||
150,000 | CenterPoint Energy, Inc., 3.85%, 2/1/24 | 159,695 | ||||
370,000 | Consolidated Edison, Inc., Series A, 0.65%, 12/1/23 | 369,995 | ||||
280,000 | Emera US Finance LP, 0.83%, 6/15/24(b) | 278,826 | ||||
500,000 | Evergy, Inc., 2.45%, 9/15/24 | 521,997 | ||||
325,000 | OGE Energy Corp., 0.70%, 5/26/23 | 324,993 | ||||
550,000 | Sempra Energy, 2.90%, 2/1/23 | 566,241 | ||||
|
| |||||
3,146,900 | ||||||
|
| |||||
Total Corporate Bonds | 29,049,280 | |||||
|
| |||||
(Cost $28,781,809) | ||||||
Asset Backed Securities — 31.06% | ||||||
240,000 | AmeriCredit Automobile Receivables Trust, Series 2019-1, Class D, 3.62%, 3/18/25 | 250,028 | ||||
125,000 | AmeriCredit Automobile Receivables Trust, Series 2019-2, Class C, 2.74%, 4/18/25 | 128,564 |
7
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Short Duration Fixed Income Fund (cont.)
|
September 30, 2021 (Unaudited) |
Principal Amount | Value | |||||
$455,000 | AmeriCredit Automobile Receivables Trust, Series 2019-3, Class D, 2.58%, 9/18/25 | $468,105 | ||||
315,000 | AmeriCredit Automobile Receivables Trust, Series 2021-1, Class D, 1.21%, 12/18/26 | 313,836 | ||||
420,000 | CarMax Auto Owner Trust, Series 2017-4, Class D, 3.30%, 5/15/24 | 422,383 | ||||
475,000 | CarMax Auto Owner Trust, Series 2018-1, Class D, 3.37%, 7/15/24 | 480,049 | ||||
305,000 | CarMax Auto Owner Trust, Series 2018-3, Class D, 3.91%, 1/15/25 | 313,740 | ||||
335,000 | CarMax Auto Owner Trust, Series 2019-1, Class C, 3.74%, 1/15/25 | 348,759 | ||||
250,000 | CarMax Auto Owner Trust, Series 2019-3, Class C, 2.60%, 6/16/25 | 257,973 | ||||
310,000 | CarMax Auto Owner Trust, Series 2019-4, Class C, 2.60%, 9/15/25 | 320,594 | ||||
175,000 | CarMax Auto Owner Trust, Series 2020-1, Class C, 2.34%, 11/17/25 | 180,627 | ||||
467,982 | Dell Equipment Finance Trust, Series 2018-2, Class C, 3.72%, 10/22/23(b) | 469,466 | ||||
175,000 | Dell Equipment Finance Trust, Series 2019-2, Class D, 2.48%, 4/22/25(b) | 177,381 | ||||
470,000 | Dell Equipment Finance Trust, Series 2021-2, Class D, 1.21%, 6/22/27(b) | 469,641 | ||||
180,000 | Drive Auto Receivables Trust, Series 2019-3, Class C, 2.90%, 8/15/25 | 181,999 | ||||
175,000 | Drive Auto Receivables Trust, Series 2019-4, Class C, 2.51%, 11/17/25 | 176,618 | ||||
50,000 | Drive Auto Receivables Trust, Series 2019-4, Class D, 2.70%, 2/16/27 | 51,222 | ||||
175,000 | Drive Auto Receivables Trust, Series 2020-1, Class C, 2.36%, 3/16/26 | 177,394 | ||||
400,000 | Drive Auto Receivables Trust, Series 2021-1, Class D, 1.45%, 1/16/29 | 397,555 | ||||
200,000 | Drive Auto Receivables Trust, Series 2021-2, Class D, 1.39%, 3/15/29 | 197,545 | ||||
300,000 | Ford Credit Auto Lease Trust, Series 2021-A, Class C, 0.78%, 9/15/25 | 300,353 | ||||
180,000 | GM Financial Automobile Leasing Trust, Series 2019-3, Class C, 2.35%, 7/20/23 | 181,306 | ||||
575,000 | GM Financial Automobile Leasing Trust, Series 2020-1, Class C, 2.04%, 12/20/23 | 582,698 | ||||
370,000 | GM Financial Consumer Automobile Receivables Trust, Series 2019-2, Class B, 2.87%, 10/16/24 | 380,223 | ||||
410,000 | GM Financial Consumer Automobile Receivables Trust, Series 2019-3, Class B, 2.32%, 12/16/24 | 419,960 | ||||
120,000 | GM Financial Consumer Automobile Receivables Trust, Series 2019-3, Class C, 2.62%, 1/16/25 | 123,195 | ||||
80,000 | GM Financial Consumer Automobile Receivables Trust, Series 2020-1, Class B, 2.03%, 4/16/25 | 81,897 |
8
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Short Duration Fixed Income Fund (cont.)
|
September 30, 2021 (Unaudited) |
Principal Amount | Value | |||||
$ 60,000 | GM Financial Consumer Automobile Receivables Trust, Series 2020-1, Class C, 2.18%, 5/16/25 | $ | 61,450 | |||
325,000 | GM Financial Leasing Trust, Series 2021-1, Class D, 1.01%, 7/21/25 | 323,665 | ||||
248,683 | Santander Drive Auto Receivables Trust, Series 2019-2, Class C, 2.90%, 10/15/24 | 250,394 | ||||
80,000 | Santander Drive Auto Receivables Trust, Series 2019-3, Class D, 2.68%, 10/15/25 | 81,645 | ||||
400,000 | Santander Drive Auto Receivables Trust, Series 2021-1, Class D, 1.13%, 11/16/26 | 401,133 | ||||
400,000 | Santander Drive Auto Receivables Trust, Series 2021-2, Class D, 1.35%, 7/15/27 | 399,789 | ||||
500,000 | Santander Retail Auto Lease Trust, Series 2019-B, Class C, 2.77%, 8/21/23(b) | 508,186 | ||||
511,220 | Sunnova Helios II Issuer LLC, Series 2019-AA, Class A, 3.75%, 6/20/46(b) | 533,618 | ||||
795,325 | Sunrun Vulcan Issuer LLC, Series 2021-1A, Class A, 2.46%, 1/30/52(b) | 803,973 | ||||
525,000 | Tesla Auto Lease Trust, Series 2019-A, Class D, 3.37%, 1/20/23(b) | 538,504 | ||||
310,000 | Tesla Auto Lease Trust, Series 2020-A, Class B, 1.18%, 1/22/24(b) | 312,615 | ||||
500,000 | Tesla Auto Lease Trust, Series 2021-A, Class D, 1.34%, 3/20/25(b) | 501,390 | ||||
425,000 | Tesla Auto Lease Trust, Series 2021-B, Class D, 1.32%, 9/22/25(b) | 424,648 | ||||
100,000 | Verizon Owner Trust, Series 2018-A, Class C, 3.55%, 4/20/23 | 100,962 | ||||
275,000 | Verizon Owner Trust, Series 2019-C, Class B, 2.06%, 4/22/24 | 281,018 | ||||
|
| |||||
Total Asset Backed Securities | 13,376,101 | |||||
|
| |||||
(Cost $13,267,489) | ||||||
U.S. Government Agency Backed Mortgages — 0.03% | ||||||
Fannie Mae — 0.01% | ||||||
2,559 | Series 2001-70, Class OF, (LIBOR USD 1-Month + 0.950%), 1.04%, 10/25/31(a) | 2,629 | ||||
1,883 | Series 2009-87, Class FX, (LIBOR USD 1-Month + 0.750%), 0.84%, 11/25/39(a) | 1,919 | ||||
|
| |||||
4,548 | ||||||
|
| |||||
Freddie Mac — 0.02% | ||||||
1,906 | Series 2448, Class FT, (LIBOR USD 1-Month + 1.000%), 1.08%, 3/15/32(a) | 1,962 | ||||
2,036 | Series 2488, Class FQ, (LIBOR USD 1-Month + 1.000%), 1.08%, 3/15/32(a) | 2,093 |
9
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Short Duration Fixed Income Fund (cont.)
|
September 30, 2021 (Unaudited) |
Principal Amount | Value | |||||
$3,834 | Series 2627, Class MW, 5.00%, 6/15/23 | $ | 3,946 | |||
724 | Series 3770, Class FP, (LIBOR USD 1-Month + 0.500%), 0.58%, 11/15/40(a) | 727 | ||||
|
| |||||
8,728 | ||||||
|
| |||||
Total U.S. Government Agency Backed Mortgages | 13,276 | |||||
|
| |||||
(Cost $12,948) | ||||||
Shares | ||||||
Investment Company — 1.68% | ||||||
721,030 | U.S. Government Money Market Fund, RBC Institutional Class 1(d) | 721,030 | ||||
|
| |||||
Total Investment Company | 721,030 | |||||
|
| |||||
(Cost $721,030) | ||||||
Total Investments | $ | 43,159,687 | ||||
(Cost $42,783,276)(e) — 100.22% | ||||||
Liabilities in excess of other assets — (0.22)% | (93,742 | ) | ||||
|
| |||||
NET ASSETS — 100.00% | $ | 43,065,945 | ||||
|
|
(a) | Floating rate note. Rate shown is as of report date. |
(b) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(c) | Security is a fix-to-float security, which carries a fixed coupon until a certain date, upon which it switches to a floating rate. Reference rate and spread are provided if the rate is currently floating. |
(d) | Affiliated investment. |
(e) | See Notes to Schedules of Portfolio Investments for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Financial futures contracts as of September 30, 2021:
Long Position | Number of Contracts | Expiration Date | Value/Unrealized Depreciation | Notional Value | Clearinghouse | |||||||||||||||||||
Two Year U.S. Treasury Note | 23 | December 2021 | $ | (2,875 | ) | USD $5,061,258 | Barclays Capital Group | |||||||||||||||||
|
| |||||||||||||||||||||||
Total | $ | (2,875 | ) | |||||||||||||||||||||
|
|
10
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Short Duration Fixed Income Fund (cont.)
|
September 30, 2021 (Unaudited) |
Abbreviations used are defined below:
GMTN - Global Medium Term Note
LIBOR - London Interbank Offered Rate
MTN - Medium Term Note
REIT - Real Estate Investment Trust
SOFR - Secured Overnight Financing Rate
USD - United States Dollar
See Notes to the Financial Statements.
11
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund
|
September 30, 2021 (Unaudited) |
Principal Amount | Value | |||||
Corporate Bonds — 70.91% | ||||||
Basic Materials — 2.26% | ||||||
$ 600,000 | DuPont de Nemours, Inc., (LIBOR USD 3-Month + 1.110%), 1.24%, 11/15/23(a) | $ | 611,327 | |||
300,000 | DuPont de Nemours, Inc., 4.21%, 11/15/23 | 322,095 | ||||
750,000 | International Flavors & Fragrances, Inc., 0.70%, 9/15/22(b) | 752,160 | ||||
300,000 | Nutrien Ltd., 3.15%, 10/1/22 | 306,222 | ||||
1,000,000 | Westlake Chemical Corp., 0.88%, 8/15/24 | 1,000,804 | ||||
|
| |||||
2,992,608 | ||||||
|
| |||||
Communications — 4.36% | ||||||
1,000,000 | AT&T, Inc., 0.90%, 3/25/24 | 1,001,368 | ||||
1,550,000 | Charter Communications Operating LLC / Charter Communications Operating Capital, 4.46%, 7/23/22 | 1,589,256 | ||||
1,500,000 | Charter Communications Operating LLC / Charter Communications Operating Capital, Series USD, 4.50%, 2/1/24 | 1,622,401 | ||||
150,000 | Comcast Corp., (LIBOR USD 3-Month + 0.630%), 0.76%, 4/15/24(a) | 151,832 | ||||
800,000 | Thomson Reuters Corp., 3.85%, 9/29/24 | 860,923 | ||||
500,000 | Videotron Ltd., 5.38%, 6/15/24(b) | 545,416 | ||||
|
| |||||
5,771,196 | ||||||
|
| |||||
Consumer, Cyclical — 4.37% | ||||||
400,000 | 7-Eleven, Inc., 0.80%, 2/10/24(b) | 399,762 | ||||
500,000 | BMW US Capital LLC, 0.75%, 8/12/24(b) | 501,198 | ||||
525,000 | Brunswick Corp., 0.85%, 8/18/24 | 524,760 | ||||
650,000 | Daimler Finance North America LLC, 0.75%, 3/1/24(b) | 650,160 | ||||
500,000 | Ford Motor Credit Co. LLC, 3.66%, 9/8/24 | 517,839 | ||||
1,000,000 | General Motors Financial Co., Inc., 3.70%, 5/9/23 | 1,043,716 | ||||
500,000 | General Motors Financial Co., Inc., 4.15%, 6/19/23 | 528,309 | ||||
807,000 | Volkswagen Group of America Finance LLC, 2.70%, 9/26/22(b) | 825,595 | ||||
300,000 | Volkswagen Group of America Finance LLC, 2.90%, 5/13/22(b) | 304,342 | ||||
450,000 | Volkswagen Group of America Finance LLC, 4.25%, 11/13/23(b) | 482,391 | ||||
|
| |||||
5,778,072 | ||||||
|
| |||||
Consumer, Non-cyclical — 8.36% | ||||||
1,000,000 | AbbVie, Inc., 3.25%, 10/1/22 | 1,021,731 | ||||
300,000 | AbbVie, Inc., 3.45%, 3/15/22 | 302,647 | ||||
125,000 | Becton Dickinson and Co., (LIBOR USD 3-Month + 1.030%), 1.15%, 6/6/22(a) | 125,717 | ||||
340,000 | Becton Dickinson and Co., 3.36%, 6/6/24 | 361,431 | ||||
600,000 | Cigna Corp., (LIBOR USD 3-Month + 0.890%), 1.02%, 7/15/23(a) | 607,741 | ||||
1,000,000 | Conagra Brands, Inc., 0.50%, 8/11/23 | 1,000,069 | ||||
35,000 | CVS Health Corp., 3.70%, 3/9/23 | 36,547 | ||||
350,000 | EMD Finance LLC, 2.95%, 3/19/22(b) | 352,762 | ||||
500,000 | Equifax, Inc., 2.60%, 12/1/24 | 524,680 | ||||
300,000 | Gilead Sciences, Inc., 0.75%, 9/29/23 | 300,029 | ||||
250,000 | HCA, Inc., 4.75%, 5/1/23 | 265,680 |
12
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund (cont.)
|
September 30, 2021 (Unaudited) |
Principal Amount | Value | |||||
$ 750,000 | HCA, Inc., 5.88%, 5/1/23 | $ | 805,061 | |||
500,000 | Humana, Inc., 0.65%, 8/3/23 | 500,274 | ||||
1,350,000 | JDE Peet’s NV, 0.80%, 9/24/24(b) | 1,346,420 | ||||
500,000 | Keurig Dr Pepper, Inc., 0.75%, 3/15/24 | 500,329 | ||||
750,000 | PerkinElmer, Inc., 0.55%, 9/15/23 | 750,627 | ||||
500,000 | PerkinElmer, Inc., 0.85%, 9/15/24 | 499,908 | ||||
750,000 | Shire Acquisitions Investments Ireland DAC, 2.88%, 9/23/23 | 781,842 | ||||
250,000 | Stryker Corp., 0.60%, 12/1/23 | 250,038 | ||||
500,000 | Takeda Pharmaceutical Co. Ltd., 4.40%, 11/26/23 | 538,722 | ||||
175,000 | Viatris, Inc., 1.13%, 6/22/22(b) | 175,875 | ||||
|
| |||||
11,048,130 | ||||||
|
| |||||
Energy — 7.73% | ||||||
250,000 | Cheniere Energy Partners LP, 5.63%, 10/1/26 | 257,033 | ||||
150,000 | ConocoPhillips Co., (LIBOR USD 3-Month + 0.900%), 1.03%, 5/15/22(a) | 150,788 | ||||
450,000 | Enbridge, Inc., 0.55%, 10/4/23 | 450,268 | ||||
250,000 | Enbridge, Inc., 2.90%, 7/15/22 | 254,461 | ||||
550,000 | Enbridge, Inc., 4.00%, 10/1/23 | 582,218 | ||||
250,000 | Energy Transfer LP, 3.45%, 1/15/23 | 256,964 | ||||
200,000 | Energy Transfer LP, 3.60%, 2/1/23 | 206,108 | ||||
250,000 | Energy Transfer LP, 5.20%, 2/1/22 | 250,868 | ||||
850,000 | Energy Transfer LP, 5.88%, 1/15/24 | 933,111 | ||||
250,000 | Kinder Morgan Energy Partners LP, 4.15%, 2/1/24 | 267,335 | ||||
1,150,000 | Kinder Morgan, Inc., 5.63%, 11/15/23(b) | 1,252,496 | ||||
450,000 | ONEOK Partners LP, 3.38%, 10/1/22 | 459,483 | ||||
750,000 | ONEOK Partners LP, 5.00%, 9/15/23 | 803,034 | ||||
750,000 | ONEOK, Inc., 2.75%, 9/1/24 | 786,006 | ||||
250,000 | ONEOK, Inc., 4.25%, 2/1/22 | 250,708 | ||||
700,000 | Pioneer Natural Resources Co., 0.75%, 1/15/24 | 699,024 | ||||
250,000 | Plains All American Pipeline LP / PAA Finance Corp., 3.65%, 6/1/22 | 253,324 | ||||
300,000 | Spectra Energy Partners LP, 4.75%, 3/15/24 | 325,911 | ||||
300,000 | Williams Cos., Inc. (The), 3.35%, 8/15/22 | 305,487 | ||||
500,000 | Williams Cos., Inc. (The), 3.60%, 3/15/22 | 504,520 | ||||
600,000 | Williams Cos., Inc. (The), 4.30%, 3/4/24 | 644,389 | ||||
300,000 | Williams Cos., Inc. (The), 4.50%, 11/15/23 | 321,441 | ||||
|
| |||||
10,214,977 | ||||||
|
| |||||
Financial — 25.01% | ||||||
1,602,000 | American Tower Corp., REIT, 5.00%, 2/15/24 | 1,759,709 | ||||
1,000,000 | Athene Global Funding, 0.91%, 8/19/24(b) | 998,608 | ||||
1,000,000 | Australia & New Zealand Banking Group Ltd., 4.50%, 3/19/24(b) | 1,085,092 | ||||
650,000 | Bank of America Corp., MTN, 0.52%, 6/14/24(c) | 649,637 | ||||
300,000 | Bank of America Corp., MTN, 0.81%, 10/24/24(c) | 300,981 | ||||
475,000 | Bank of America Corp., 0.98%, 4/22/25(c) | 477,429 |
13
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund (cont.)
|
September 30, 2021 (Unaudited) |
Principal Amount | Value | |||||
$1,250,000 | Bank of America Corp., (LIBOR USD 3-Month + 0.960%), GMTN, 1.10%, 7/23/24(a) | $ | 1,266,021 | |||
750,000 | Bank of America Corp., 3.00%, 12/20/23(c) | 772,754 | ||||
250,000 | Bank of Nova Scotia (The), (LIBOR USD 3-Month + 0.620%), 0.74%, 9/19/22(a) | 251,394 | ||||
250,000 | Barclays Plc, 1.01%, 12/10/24(c) | 251,122 | ||||
600,000 | Barclays Plc, 3.65%, 3/16/25 | 645,330 | ||||
263,000 | Barclays Plc, 3.68%, 1/10/23 | 265,301 | ||||
250,000 | BNP Paribas SA, MTN, 2.95%, 5/23/22(b) | 254,269 | ||||
500,000 | BNP Paribas SA, 3.38%, 1/9/25(b) | 532,996 | ||||
250,000 | BNP Paribas SA, MTN, 3.50%, 3/1/23(b) | 260,566 | ||||
350,000 | BNP Paribas SA, MTN, 3.80%, 1/10/24(b) | 372,864 | ||||
83,000 | Camden Property Trust, REIT, 4.88%, 6/15/23 | 88,109 | ||||
300,000 | Canadian Imperial Bank of Commerce, (LIBOR USD 3-Month + 0.660%), 0.77%, 9/13/23(a) | 303,257 | ||||
500,000 | Canadian Imperial Bank of Commerce, 3.10%, 4/2/24 | 529,396 | ||||
250,000 | Citigroup, Inc., (LIBOR USD 3-Month + 0.690%), 0.82%, 10/27/22(a) | 251,407 | ||||
1,000,000 | Citigroup, Inc., (SOFR RATE + 0.770%), 0.82%, 6/9/27(a) | 1,001,520 | ||||
250,000 | Citigroup, Inc., 0.98%, 5/1/25(c) | 250,953 | ||||
200,000 | Citigroup, Inc., (LIBOR USD 3-Month + 0.950%), 1.08%, 7/24/23(a) | 201,239 | ||||
1,000,000 | Citigroup, Inc., 2.88%, 7/24/23(c) | 1,019,507 | ||||
565,000 | Commonwealth Bank of Australia, (SOFR RATE + 0.400%), 0.45%, 7/7/25(a),(b) | 565,384 | ||||
250,000 | Cooperatieve Rabobank UA, (LIBOR USD 3-Month + 0.480%), 0.60%, 1/10/23(a) | 251,305 | ||||
750,000 | Cooperatieve Rabobank UA, 3.95%, 11/9/22 | 778,431 | ||||
1,000,000 | Cooperatieve Rabobank UA, 4.63%, 12/1/23 | 1,082,932 | ||||
250,000 | Credit Agricole SA, 3.38%, 1/10/22(b) | 252,072 | ||||
590,000 | Credit Agricole SA, 3.75%, 4/24/23(b) | 620,072 | ||||
250,000 | Credit Suisse Group AG, 3.57%, 1/9/23(b) | 252,047 | ||||
500,000 | Credit Suisse Group Funding Guernsey Ltd., 3.80%, 9/15/22 | 516,488 | ||||
500,000 | Crown Castle International Corp., REIT, 3.20%, 9/1/24 | 531,440 | ||||
500,000 | Goldman Sachs Group, Inc. (The), 0.67%, 3/8/24(c) | 500,621 | ||||
400,000 | Goldman Sachs Group, Inc. (The), (LIBOR USD 3-Month + 0.750%), 0.88%, 2/23/23(a) | 403,120 | ||||
250,000 | Goldman Sachs Group, Inc. (The), GMTN, 2.91%, 7/24/23(c) | 254,838 | ||||
200,000 | Goldman Sachs Group, Inc. (The), 3.63%, 2/20/24 | 213,202 | ||||
850,000 | Goldman Sachs Group, Inc. (The), Series VAR, 0.63%, 11/17/23(c) | 850,705 | ||||
250,000 | HSBC Holdings Plc, 0.73%, 8/17/24(c) | 250,165 | ||||
550,000 | HSBC Holdings Plc, 0.98%, 5/24/25(c) | 548,811 | ||||
250,000 | HSBC Holdings Plc, 3.26%, 3/13/23(c) | 253,136 | ||||
225,000 | HSBC Holdings Plc, 3.60%, 5/25/23 | 236,556 | ||||
350,000 | HSBC Holdings Plc, 3.95%, 5/18/24(c) | 368,572 | ||||
200,000 | ING Groep NV, 3.15%, 3/29/22 | 202,861 | ||||
250,000 | ING Groep NV, 4.10%, 10/2/23 | 267,582 |
14
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund (cont.)
|
September 30, 2021 (Unaudited) |
Principal Amount | Value | |||||
$ 500,000 | JPMorgan Chase & Co., (SOFR RATE + 0.580%), Series FRN, 0.63%, 6/23/25(a) | $ | 502,265 | |||
250,000 | JPMorgan Chase & Co., 0.70%, 3/16/24(c) | 250,695 | ||||
1,000,000 | JPMorgan Chase & Co., (LIBOR USD 3-Month + 0.850%), GMTN, 0.97%, 1/10/25(a) | 1,012,445 | ||||
250,000 | JPMorgan Chase & Co., (LIBOR USD 3-Month + 0.900%), 1.03%, 4/25/23(a) | 251,353 | ||||
250,000 | JPMorgan Chase & Co., 3.56%, 4/23/24(c) | 261,663 | ||||
400,000 | Lloyds Banking Group Plc, 0.70%, 5/11/24(c) | 401,101 | ||||
350,000 | Lloyds Banking Group Plc, 2.86%, 3/17/23(c) | 353,944 | ||||
200,000 | Lloyds Banking Group Plc, 2.91%, 11/7/23(c) | 205,191 | ||||
250,000 | Lloyds Banking Group Plc, 3.00%, 1/11/22 | 251,862 | ||||
1,000,000 | Mid-America Apartments LP, REIT, 4.30%, 10/15/23 | 1,064,523 | ||||
300,000 | Morgan Stanley, 0.53%, 1/25/24(c) | 300,162 | ||||
1,000,000 | Morgan Stanley, 0.73%, 4/5/24(c) | 1,003,117 | ||||
250,000 | Morgan Stanley, (LIBOR USD 3-Month + 1.400%), MTN, 1.53%, 10/24/23(a) | 253,188 | ||||
500,000 | Nordea Bank Abp, 3.75%, 8/30/23(b) | 530,301 | ||||
500,000 | Santander UK Group Holdings Plc, 3.37%, 1/5/24(c) | 516,735 | ||||
492,000 | Santander UK Group Holdings Plc, 3.57%, 1/10/23 | 496,119 | ||||
200,000 | Swedbank AB, (LIBOR USD 3-Month + 0.700%), 0.82%, 3/14/22(a),(b) | 200,568 | ||||
425,000 | UBS AG, MTN, 0.45%, 2/9/24(b) | 422,794 | ||||
1,695,000 | Willis North America, Inc., 3.60%, 5/15/24 | 1,807,240 | ||||
|
| |||||
33,075,067 | ||||||
|
| |||||
Industrial — 2.93% | ||||||
500,000 | Boeing Co. (The), 1.17%, 2/4/23 | 501,058 | ||||
250,000 | Boeing Co. (The), 1.43%, 2/4/24 | 250,358 | ||||
925,000 | Huntington Ingalls Industries, Inc., 0.67%, 8/16/23(b) | 925,013 | ||||
185,000 | L3Harris Technologies, Inc., 3.95%, 5/28/24 | 198,553 | ||||
500,000 | Raytheon Technologies Corp., 3.20%, 3/15/24 | 529,694 | ||||
1,469,000 | Teledyne Technologies, Inc., 0.95%, 4/1/24 | 1,470,535 | ||||
|
| |||||
3,875,211 | ||||||
|
| |||||
Technology — 9.82% | ||||||
900,000 | Analog Devices, Inc., (SOFR RATE + 0.250%), 0.30%, 10/1/24(a) | 901,212 | ||||
1,100,000 | Autodesk, Inc., 3.60%, 12/15/22 | 1,131,726 | ||||
1,318,000 | Broadcom Corp. / Broadcom Cayman Finance Ltd., 3.63%, 1/15/24 | 1,397,792 | ||||
250,000 | Broadcom, Inc., 4.70%, 4/15/25 | 278,164 | ||||
650,000 | Dell International LLC / EMC Corp., 4.00%, 7/15/24 | 703,503 | ||||
1,150,000 | Dell International LLC / EMC Corp., 5.45%, 6/15/23 | 1,234,183 | ||||
1,250,000 | Leidos, Inc., 2.95%, 5/15/23 | 1,294,088 | ||||
1,025,000 | Microchip Technology, Inc., 0.97%, 2/15/24(b) | 1,025,349 | ||||
500,000 | Microchip Technology, Inc., 0.98%, 9/1/24(b) | 499,476 | ||||
550,000 | NXP BV / NXP Funding LLC, 3.88%, 9/1/22(b) | 566,554 | ||||
1,100,000 | NXP BV / NXP Funding LLC, 4.63%, 6/1/23(b) | 1,170,812 | ||||
500,000 | NXP BV / NXP Funding LLC / NXP USA, Inc., 2.70%, 5/1/25(b) | 522,631 |
15
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund (cont.)
|
September 30, 2021 (Unaudited) |
Principal Amount | Value | |||||
$ 250,000 | Open Text Corp., 5.88%, 6/1/26(b) | $ | 258,753 | |||
325,000 | Roper Technologies, Inc., 0.45%, 8/15/22 | 325,535 | ||||
875,000 | Skyworks Solutions, Inc., 0.90%, 6/1/23 | 876,589 | ||||
800,000 | VMware, Inc., 0.60%, 8/15/23 | 800,791 | ||||
|
| |||||
12,987,158 | ||||||
|
| |||||
Utilities — 6.07% | ||||||
425,000 | American Electric Power Co., Inc., Series M, 0.75%, 11/1/23 | 425,020 | ||||
300,000 | CenterPoint Energy Resources Corp., 0.70%, 3/2/23 | 300,005 | ||||
1,000,000 | CenterPoint Energy, Inc., (SOFR RATE + 0.650%), 0.70%, 5/13/24(a) | 1,001,857 | ||||
148,000 | CenterPoint Energy, Inc., 3.85%, 2/1/24 | 157,566 | ||||
510,000 | Consolidated Edison, Inc., Series A, 0.65%, 12/1/23 | 509,993 | ||||
600,000 | Dominion Energy, Inc., Series B, 2.75%, 9/15/22 | 610,377 | ||||
1,115,000 | Emera US Finance LP, 0.83%, 6/15/24(b) | 1,110,323 | ||||
1,000,000 | Evergy, Inc., 2.45%, 9/15/24 | 1,043,994 | ||||
350,000 | NextEra Energy Capital Holdings, Inc., 0.65%, 3/1/23 | 351,359 | ||||
875,000 | OGE Energy Corp., 0.70%, 5/26/23 | 874,981 | ||||
500,000 | Sempra Energy, 2.90%, 2/1/23 | 514,765 | ||||
300,000 | Southern Co. (The), Series 21-A, 0.60%, 2/26/24 | 299,397 | ||||
150,000 | WEC Energy Group, Inc., 0.55%, 9/15/23 | 149,958 | ||||
675,000 | WEC Energy Group, Inc., 0.80%, 3/15/24 | 676,739 | ||||
|
| |||||
8,026,334 | ||||||
|
| |||||
Total Corporate Bonds | 93,768,753 | |||||
|
| |||||
(Cost $93,562,658) | ||||||
Asset Backed Securities — 27.18% | ||||||
234,000 | AmeriCredit Automobile Receivables Trust, Series 2020-3, Class D, 1.49%, 9/18/26 | 236,294 | ||||
790,000 | AmeriCredit Automobile Receivables Trust, Series 2018-3, Class D, 4.04%, 11/18/24 | 826,017 | ||||
160,000 | AmeriCredit Automobile Receivables Trust, Series 2019-1, Class D, 3.62%, 3/18/25 | 166,685 | ||||
175,000 | AmeriCredit Automobile Receivables Trust, Series 2019-3, Class B, 2.13%, 7/18/25 | 177,384 | ||||
300,000 | AmeriCredit Automobile Receivables Trust, Series 2019-3, Class D, 2.58%, 9/18/25 | 308,641 | ||||
100,000 | AmeriCredit Automobile Receivables Trust, Series 2020-1, Class D, 1.80%, 12/18/25 | 101,662 | ||||
390,000 | AmeriCredit Automobile Receivables Trust, Series 2021-1, Class D, 1.21%, 12/18/26 | 388,559 | ||||
800,000 | CarMax Auto Owner Trust, Series 2017-4, Class D, 3.30%, 5/15/24 | 804,540 | ||||
350,000 | CarMax Auto Owner Trust, Series 2018-1, Class C, 2.95%, 11/15/23 | 353,307 | ||||
200,000 | CarMax Auto Owner Trust, Series 2018-2, Class D, 3.99%, 4/15/25 | 204,431 |
16
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund (cont.)
|
September 30, 2021 (Unaudited) |
Principal Amount | Value | |||||
$ 205,000 | CarMax Auto Owner Trust, Series 2018-3, Class D, 3.91%, 1/15/25 | $ | 210,874 | |||
185,000 | CarMax Auto Owner Trust, Series 2018-4, Class C, 3.85%, 7/15/24 | 191,811 | ||||
290,000 | CarMax Auto Owner Trust, Series 2018-4, Class D, 4.15%, 4/15/25 | 301,203 | ||||
145,000 | CarMax Auto Owner Trust, Series 2019-1, Class D, 4.04%, 8/15/25 | 151,114 | ||||
450,000 | CarMax Auto Owner Trust, Series 2019-2, Class D, 3.41%, 10/15/25 | 466,968 | ||||
300,000 | CarMax Auto Owner Trust, Series 2019-3, Class C, 2.60%, 6/16/25 | 309,568 | ||||
705,000 | CarMax Auto Owner Trust, Series 2019-3, Class D, 2.85%, 1/15/26 | 727,488 | ||||
100,000 | CarMax Auto Owner Trust, Series 2019-4, Class C, 2.60%, 9/15/25 | 103,417 | ||||
125,000 | CarMax Auto Owner Trust, Series 2020-1, Class C, 2.34%, 11/17/25 | 129,020 | ||||
572,000 | CarMax Auto Owner Trust, Series 2020-2, Class D, 5.75%, 5/17/27 | 622,567 | ||||
1,000,000 | CarMax Auto Owner Trust, Series 2020-3, Class D, 2.53%, 1/15/27 | 1,029,457 | ||||
900,000 | CarMax Auto Owner Trust, Series 2021-1, Class D, 1.28%, 7/15/27 | 901,243 | ||||
198,078 | CNH Equipment Trust, Series 2019-A, Class A3, 3.01%, 4/15/24 | 200,552 | ||||
380,236 | Dell Equipment Finance Trust, Series 2018-2, Class C, 3.72%, 10/22/23(b) | 381,441 | ||||
603,000 | Dell Equipment Finance Trust, Series 2019-1, Class B, 2.94%, 3/22/24(b) | 607,569 | ||||
1,430,000 | Dell Equipment Finance Trust, Series 2021-2, Class D, 1.21%, 6/22/27(b) | 1,428,908 | ||||
10,901 | Drive Auto Receivables Trust, Series 2017-2, Class D, 3.49%, 9/15/23 | 10,925 | ||||
119,663 | Drive Auto Receivables Trust, Series 2018-3, Class D, 4.30%, 9/16/24 | 121,648 | ||||
620,000 | Drive Auto Receivables Trust, Series 2018-5, Class D, 4.30%, 4/15/26 | 639,681 | ||||
71,174 | Drive Auto Receivables Trust, Series 2019-1, Class C, 3.78%, 4/15/25 | 71,538 | ||||
1,000,000 | Drive Auto Receivables Trust, Series 2019-1, Class D, 4.09%, 6/15/26 | 1,029,115 | ||||
150,000 | Drive Auto Receivables Trust, Series 2019-2, Class D, 3.69%, 8/17/26 | 154,563 | ||||
130,000 | Drive Auto Receivables Trust, Series 2019-3, Class C, 2.90%, 8/15/25 | 131,444 | ||||
265,000 | Drive Auto Receivables Trust, Series 2019-3, Class D, 3.18%, 10/15/26 | 272,639 | ||||
105,000 | Drive Auto Receivables Trust, Series 2019-4, Class C, 2.51%, 11/17/25 | 105,971 |
17
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund (cont.)
|
September 30, 2021 (Unaudited) |
Principal Amount | Value | |||||
$ 265,000 | Drive Auto Receivables Trust, Series 2019-4, Class D, 2.70%, 2/16/27 | $ | 271,474 | |||
125,000 | Drive Auto Receivables Trust, Series 2020-1, Class C, 2.36%, 3/16/26 | 126,710 | ||||
900,000 | Drive Auto Receivables Trust, Series 2020-1, Class D, 2.70%, 5/17/27 | 924,030 | ||||
140,000 | Drive Auto Receivables Trust, Series 2020-2, Class C, 2.28%, 8/17/26 | 142,663 | ||||
1,100,000 | Drive Auto Receivables Trust, Series 2021-1, Class D, 1.45%, 1/16/29 | 1,093,276 | ||||
775,000 | Drive Auto Receivables Trust, Series 2021-2, Class D, 1.39%, 3/15/29 | 765,486 | ||||
500,000 | Ford Credit Auto Lease Trust, Series 2021-A, Class C, 0.78%, 9/15/25 | 500,589 | ||||
105,000 | GM Financial Automobile Leasing Trust, Series 2019-3, Class C, 2.35%, 7/20/23 | 105,762 | ||||
425,000 | GM Financial Automobile Leasing Trust, Series 2020-1, Class C, 2.04%, 12/20/23 | 430,689 | ||||
1,150,000 | GM Financial Automobile Leasing Trust, Series 2020-2, Class D, 3.21%, 12/20/24 | 1,191,027 | ||||
1,000,000 | GM Financial Automobile Leasing Trust, Series 2020-3, Class D, 1.71%, 2/20/25 | 1,010,138 | ||||
150,000 | GM Financial Consumer Automobile Receivables Trust, Series 2018-3, Class B, 3.27%, 1/16/24 | 152,750 | ||||
60,000 | GM Financial Consumer Automobile Receivables Trust, Series 2020-1, Class B, 2.03%, 4/16/25 | 61,423 | ||||
50,000 | GM Financial Consumer Automobile Receivables Trust, Series 2020-1, Class C, 2.18%, 5/16/25 | 51,208 | ||||
325,000 | GM Financial Leasing Trust, Series 2021-1, Class D, 1.01%, 7/21/25 | 323,665 | ||||
1,040,000 | GreatAmerica Leasing Receivables Funding LLC, Series 2021-1, Class C, 0.92%, 12/15/27(b) | 1,029,669 | ||||
257,488 | Santander Drive Auto Receivables Trust, Series 2018-2, Class D, 3.88%, 2/15/24 | 260,641 | ||||
721,833 | Santander Drive Auto Receivables Trust, Series 2018-3, Class D, 4.07%, 8/15/24 | 734,075 | ||||
51,071 | Santander Drive Auto Receivables Trust, Series 2019-1, Class C, 3.42%, 4/15/25 | 51,267 | ||||
100,000 | Santander Drive Auto Receivables Trust, Series 2019-1, Class D, 3.65%, 4/15/25 | 102,110 | ||||
400,000 | Santander Drive Auto Receivables Trust, Series 2019-2, Class D, 3.22%, 7/15/25 | 409,888 | ||||
160,000 | Santander Drive Auto Receivables Trust, Series 2019-3, Class D, 2.68%, 10/15/25 | 163,290 | ||||
420,000 | Santander Drive Auto Receivables Trust, Series 2020-3, Class D, 1.64%, 11/16/26 | 425,534 | ||||
1,000,000 | Santander Drive Auto Receivables Trust, Series 2020-4, Class D, 1.48%, 1/15/27 | 1,013,005 | ||||
450,000 | Santander Drive Auto Receivables Trust, Series 2021-1, Class D, 1.13%, 11/16/26 | 451,275 |
18
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund (cont.)
|
September 30, 2021 (Unaudited) |
Principal Amount | Value | |||||||
$1,100,000 | Santander Drive Auto Receivables Trust, Series 2021-2, Class D, 1.35%, 7/15/27 | $ | 1,099,420 | |||||
505,000 | Santander Retail Auto Lease Trust, Series 2019-A, Class B, 3.01%, 5/22/23(b) | 507,585 | ||||||
300,000 | Santander Retail Auto Lease Trust, Series 2019-A, Class C, 3.30%, 5/22/23(b) | 302,555 | ||||||
240,000 | Santander Retail Auto Lease Trust, Series 2019-B, Class C, 2.77%, 8/21/23(b) | 243,929 | ||||||
450,000 | Santander Retail Auto Lease Trust, Series 2020-A, Class C, 2.08%, 3/20/24(b) | 459,300 | ||||||
1,500,000 | Santander Retail Auto Lease Trust, Series 2020-B, Class C, 1.18%, 12/20/24(b) | 1,507,412 | ||||||
1,026,015 | Sunnova Helios II Issuer LLC, Series 2019-AA, Class A, 3.75%, 6/20/46(b) | 1,070,967 | ||||||
100,000 | Tesla Auto Lease Trust, Series 2019-A, Class C, 2.68%, 1/20/23(b) | 102,013 | ||||||
1,475,000 | Tesla Auto Lease Trust, Series 2019-A, Class D, 3.37%, 1/20/23(b) | 1,512,940 | ||||||
600,000 | Tesla Auto Lease Trust, Series 2021-A, Class D, 1.34%, 3/20/25(b) | 601,668 | ||||||
1,300,000 | Tesla Auto Lease Trust, Series 2021-B, Class D, 1.32%, 9/22/25(b) | 1,298,923 | ||||||
170,000 | Verizon Owner Trust, Series 2019-C, Class B, 2.06%, 4/22/24 | 173,720 | ||||||
1,400,000 | World Omni Auto Receivables Trust, Series 2021-B, Class C, 1.29%, 12/15/27 | 1,394,270 | ||||||
|
| |||||||
Total Asset Backed Securities | 35,934,590 | |||||||
|
| |||||||
(Cost $35,952,414) | ||||||||
U.S. Government Agency Backed Mortgages — 0.89% | ||||||||
Fannie Mae — 0.00% | ||||||||
1,025 | Pool #888467, 6.00%, 6/1/22 | 1,029 | ||||||
2,623 | Series 2003-55, Class CD, 5.00%, 6/25/23 | 2,700 | ||||||
443 | Series 2012-1, Class GB, 2.00%, 2/25/22 | 443 | ||||||
|
| |||||||
4,172 | ||||||||
|
| |||||||
FREMF Mortgage Trust — 0.89% | ||||||||
1,120,000 | Series 2016-K722, Class B, 3.99%, 7/25/49(b),(d) | 1,168,495 | ||||||
|
| |||||||
Total U.S. Government Agency Backed Mortgages | 1,172,667 | |||||||
|
| |||||||
(Cost $1,180,815) |
19
SCHEDULE OF PORTFOLIO INVESTMENTS
|
RBC Ultra-Short Fixed Income Fund (cont.)
|
September 30, 2021 (Unaudited) |
Shares | Value | |||||
Investment Company — 1.84% | ||||||
2,438,215 | U.S. Government Money Market Fund, RBC Institutional Class 1(e) | $ | 2,438,215 | |||
|
| |||||
Total Investment Company | 2,438,215 | |||||
|
| |||||
(Cost $2,438,215) | ||||||
Total Investments | $ | 133,314,225 | ||||
(Cost $133,134,102)(f) — 100.82% | ||||||
Liabilities in excess of other assets — (0.82)% | (1,087,445 | ) | ||||
|
| |||||
NET ASSETS — 100.00% | $ | 132,226,780 | ||||
|
|
(a) | Floating rate note. Rate shown is as of report date. |
(b) | Security exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(c) | Security is a fix-to-float security, which carries a fixed coupon until a certain date, upon which it switches to a floating rate. Reference rate and spread are provided if the rate is currently floating. |
(d) | 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) | Affiliated investment. |
(f) | See Notes to Schedules of Portfolio Investments for the tax cost of securities and the breakdown of unrealized appreciation (depreciation). |
Financial futures contracts as of September 30, 2021:
Short Position | Number of Contracts | Expiration Date | Value/Unrealized Appreciation | Notional Value | Clearinghouse | |||||||||||||||||||
Two Year U.S. Treasury Note | 155 | December 2021 | $ | 21,446 | USD $34,108,477 | Barclays Capital Group | ||||||||||||||||||
|
| |||||||||||||||||||||||
Total | $ | 21,446 | ||||||||||||||||||||||
|
|
Abbreviations used are defined below:
GMTN - Global Medium Term Note
LIBOR - London Interbank Offered Rate
MTN - Medium Term Note
REIT - Real Estate Investment Trust
SOFR - Secured Overnight Financing Rate
USD - United States Dollar
See Notes to the Financial Statements.
20
RBC Short Duration Fixed Income Fund | RBC Ultra-Short Fixed Income Fund | |||||||||||||||
Assets: | ||||||||||||||||
Investments in securities, at value: | ||||||||||||||||
Unaffiliated investments (cost $42,062,246 and $130,695,887, respectively) | $ | 42,438,657 | $ | 130,876,010 | ||||||||||||
Affiliated investments (cost $721,030 and $2,438,215, respectively) | 721,030 | 2,438,215 | ||||||||||||||
Cash at broker for financial futures contracts | 39,405 | 141,281 | ||||||||||||||
Interest and dividend receivable | 213,930 | 596,885 | ||||||||||||||
Receivable from advisor | 6,798 | — | ||||||||||||||
Receivable for capital shares issued | 100,000 | 291,298 | ||||||||||||||
Unrealized appreciation on futures contracts | — | 21,446 | ||||||||||||||
Prepaid expenses and other assets | 10,359 | 20,745 | ||||||||||||||
|
|
|
| |||||||||||||
Total Assets | 43,530,179 | 134,385,880 | ||||||||||||||
|
|
|
| |||||||||||||
Liabilities: | ||||||||||||||||
Foreign withholding tax payable | 2,061 | 2,061 | ||||||||||||||
Distributions payable | 1,186 | 4,908 | ||||||||||||||
Payable for capital shares redeemed | 53,042 | 180,061 | ||||||||||||||
Payable for investments purchased | 349,883 | 1,914,766 | ||||||||||||||
Unrealized depreciation on futures contracts | 2,875 | — | ||||||||||||||
Accrued expenses and other payables: | ||||||||||||||||
Investment advisory fees | — | 9,383 | ||||||||||||||
Accounting fees | 4,459 | 5,163 | ||||||||||||||
Audit fees | 11,150 | 11,150 | ||||||||||||||
Trustees’ fees | 180 | — | ||||||||||||||
Distribution fees | — | 4,325 | ||||||||||||||
Custodian fees | 1,686 | 315 | ||||||||||||||
Shareholder reports | 12,548 | 7,047 | ||||||||||||||
Transfer agent fees | 7,997 | 8,695 | ||||||||||||||
Other | 17,167 | 11,226 | ||||||||||||||
|
|
|
| |||||||||||||
Total Liabilities | 464,234 | 2,159,100 | ||||||||||||||
|
|
|
| |||||||||||||
Net Assets | $ | 43,065,945 | $ | 132,226,780 | ||||||||||||
|
|
|
| |||||||||||||
Net Assets Consists of: | ||||||||||||||||
Capital | $ | 42,298,011 | $ | 132,210,774 | ||||||||||||
Accumulated earnings | 767,934 | 16,006 | ||||||||||||||
|
|
|
| |||||||||||||
Net Assets | $ | 43,065,945 | $ | 132,226,780 | ||||||||||||
|
|
|
|
21
FINANCIAL STATEMENTS
|
Statements of Assets and Liabilities (cont.)
|
September 30, 2021 (Unaudited) |
RBC Short Duration Fixed Income Fund | RBC Ultra-Short Fixed Income Fund | |||||||||||||||
Net Assets | ||||||||||||||||
Class A | $ | 1,223,144 | $ | 33,267,924 | ||||||||||||
Class I | 41,842,801 | 98,958,856 | ||||||||||||||
|
|
|
| |||||||||||||
Total | $ | 43,065,945 | $ | 132,226,780 | ||||||||||||
|
|
|
| |||||||||||||
Shares Outstanding (Unlimited number of shares authorized, no par value): | ||||||||||||||||
Class A | 120,344 | 3,331,080 | ||||||||||||||
Class I | 4,123,362 | 9,921,673 | ||||||||||||||
|
|
|
| |||||||||||||
Total | 4,243,706 | 13,252,753 | ||||||||||||||
|
|
|
| |||||||||||||
Net Asset Values and Redemption Prices Per Share: | ||||||||||||||||
Class A | $ | 10.16 | $ | 9.99 | ||||||||||||
�� |
|
|
|
| ||||||||||||
Class I | $ | 10.15 | $ | 9.97 | ||||||||||||
|
|
|
|
See Notes to the Financial Statements.
22
FINANCIAL STATEMENTS
|
|
For the Six Months Ended September 30, 2021 (Unaudited) |
RBC Short Duration Fixed Income Fund | RBC Ultra-Short Fixed Income Fund | |||||||||||||||
Investment Income: | ||||||||||||||||
Interest income | $ | 367,949 | $ | 631,125 | ||||||||||||
Dividend income - affiliated | 194 | 541 | ||||||||||||||
|
|
|
| |||||||||||||
Total Investment Income | 368,143 | 631,666 | ||||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 66,085 | 133,851 | ||||||||||||||
Distribution fees–Class A | 351 | 12,071 | ||||||||||||||
Accounting fees | 31,120 | 33,257 | ||||||||||||||
Audit fees | 18,835 | 18,835 | ||||||||||||||
Custodian fees | 2,898 | 1,962 | ||||||||||||||
Insurance fees | 1,786 | 1,786 | ||||||||||||||
Legal fees | 1,540 | 1,123 | ||||||||||||||
Registrations and filing fees | 20,510 | 24,083 | ||||||||||||||
Shareholder reports | 16,472 | 17,796 | ||||||||||||||
Transfer agent fees–Class A | 1,903 | 3,684 | ||||||||||||||
Transfer agent fees–Class I | 20,319 | 28,136 | ||||||||||||||
Trustees’ fees and expenses | 824 | 1,257 | ||||||||||||||
Tax expense | 2,061 | 2,061 | ||||||||||||||
Other fees | 2,283 | 2,220 | ||||||||||||||
|
|
|
| |||||||||||||
Total expenses before fee waiver/reimbursement | 186,987 | 282,122 | ||||||||||||||
Expenses waived/reimbursed by: | ||||||||||||||||
Advisor | (109,537 | ) | (107,101 | ) | ||||||||||||
|
|
|
| |||||||||||||
Net expenses | 77,450 | 175,021 | ||||||||||||||
|
|
|
| |||||||||||||
Net Investment Income | 290,693 | 456,645 | ||||||||||||||
|
|
|
| |||||||||||||
Realized/Unrealized Gains/(Losses): | ||||||||||||||||
Net realized gains/(losses) on: | ||||||||||||||||
Investment transactions | 361,213 | 63,869 | ||||||||||||||
Futures contracts | (1,749 | ) | 18,877 | |||||||||||||
|
|
|
| |||||||||||||
Net realized gains | 359,464 | 82,746 | ||||||||||||||
Net change in unrealized appreciation/ (depreciation) on: | ||||||||||||||||
Investments | (392,512 | ) | (147,436 | ) | ||||||||||||
Futures contracts | (2,875 | ) | (45,085 | ) | ||||||||||||
|
|
|
| |||||||||||||
Net unrealized losses | (395,387 | ) | (192,521 | ) | ||||||||||||
|
|
|
| |||||||||||||
Change in net assets resulting from operations | $ | 254,770 | $ | 346,870 | ||||||||||||
|
|
|
|
See Notes to the Financial Statements.
23
RBC Short Duration Fixed Income Fund | ||||||||||||
For the Six Months Ended September 30, 2021 (Unaudited) | For the Year Ended March 31, 2021 | |||||||||||
From Investment Activities | ||||||||||||
Operations: | ||||||||||||
Net investment income | $ | 290,693 | $ | 1,183,729 | ||||||||
Net realized gains from investments and futures contracts | 359,464 | 505,827 | ||||||||||
Net change in unrealized appreciation/(depreciation) on investments and futures contracts | (395,387 | ) | 2,062,924 | |||||||||
|
|
|
| |||||||||
Change in net assets resulting from operations | 254,770 | 3,752,480 | ||||||||||
|
|
|
| |||||||||
Distributions to Shareholders: | ||||||||||||
Class A | (4,346 | ) | (7,561 | ) | ||||||||
Class I | (294,129 | ) | (1,194,258 | ) | ||||||||
|
|
|
| |||||||||
Change in net assets resulting from shareholder distributions | (298,475 | ) | (1,201,819 | ) | ||||||||
|
|
|
| |||||||||
Capital Transactions: | ||||||||||||
Proceeds from shares issued | 6,831,317 | 22,504,326 | ||||||||||
Distributions reinvested | 285,973 | 1,200,646 | ||||||||||
Cost of shares redeemed | (28,606,403 | ) | (17,967,089 | ) | ||||||||
|
|
|
| |||||||||
Change in net assets resulting from capital transactions | (21,489,113 | ) | 5,737,883 | |||||||||
|
|
|
| |||||||||
Net increase/(decrease) in net assets | (21,532,818 | ) | 8,288,544 | |||||||||
Net Assets: | ||||||||||||
Beginning of period | 64,598,763 | 56,310,219 | ||||||||||
|
|
|
| |||||||||
End of period | $ | 43,065,945 | $ | 64,598,763 | ||||||||
|
|
|
| |||||||||
Share Transactions: | ||||||||||||
Issued | 671,057 | 2,218,548 | ||||||||||
Reinvested | 28,113 | 118,243 | ||||||||||
Redeemed | (2,811,269 | ) | (1,771,182 | ) | ||||||||
|
|
|
| |||||||||
Change in shares resulting from capital transactions | (2,112,099 | ) | 565,609 | |||||||||
|
|
|
|
See Notes to the Financial Statements.
24
FINANCIAL STATEMENTS
|
Statements of Changes in Net Assets
|
|
RBC Ultra-Short Fixed Income Fund | ||||||||||||
For the Six Months Ended September 30, 2021 (Unaudited) | For the Year Ended March 31, 2021 | |||||||||||
From Investment Activities | ||||||||||||
Operations: | ||||||||||||
Net investment income | $ | 456,645 | $ | 763,897 | ||||||||
Net realized gains from investments and futures contracts | 82,746 | 235,584 | ||||||||||
Net change in unrealized appreciation/(depreciation) on investments and futures contracts | (192,521 | ) | 1,623,046 | |||||||||
|
|
|
| |||||||||
Change in net assets resulting from operations | 346,870 | 2,622,527 | ||||||||||
|
|
|
| |||||||||
Distributions to Shareholders: | ||||||||||||
Class A | (89,622 | ) | (135,540 | ) | ||||||||
Class I | (391,351 | ) | (647,315 | ) | ||||||||
|
|
|
| |||||||||
Change in net assets resulting from shareholder distributions | (480,973 | ) | (782,855 | ) | ||||||||
|
|
|
| |||||||||
Capital Transactions: | ||||||||||||
Proceeds from shares issued | 87,254,291 | 92,989,854 | ||||||||||
Distributions reinvested | 445,196 | 714,803 | ||||||||||
Cost of shares redeemed | (51,258,841 | ) | (40,316,838 | ) | ||||||||
|
|
|
| |||||||||
Change in net assets resulting from capital transactions | 36,440,646 | 53,387,819 | ||||||||||
|
|
|
| |||||||||
Net increase in net assets | 36,306,543 | 55,227,491 | ||||||||||
Net Assets: | ||||||||||||
Beginning of period | 95,920,237 | 40,692,746 | ||||||||||
|
|
|
| |||||||||
End of period | $ | 132,226,780 | $ | 95,920,237 | ||||||||
|
|
|
| |||||||||
Share Transactions: | ||||||||||||
Issued | 8,734,567 | 9,332,318 | ||||||||||
Reinvested | 44,574 | 71,887 | ||||||||||
Redeemed | (5,133,590 | ) | (4,048,317 | ) | ||||||||
|
|
|
| |||||||||
Change in shares resulting from capital transactions | 3,645,551 | 5,355,888 | ||||||||||
|
|
|
|
See Notes to the Financial Statements.
25
RBC Short Duration Fixed Income 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 9/30/21 (Unaudited) | $10.18 | 0.06 | (0.02 | ) | 0.04 | (0.06 | ) | (0.06 | ) | $10.16 | ||||||||||||||||||
Year Ended 3/31/21 | 9.98 | 0.17 | 0.21 | 0.38 | (0.18 | ) | (0.18 | ) | 10.18 | |||||||||||||||||||
Year Ended 3/31/20 | 9.94 | 0.25 | 0.04 | 0.29 | (0.25 | ) | (0.25 | ) | 9.98 | |||||||||||||||||||
Year Ended 3/31/19 | 9.85 | 0.24 | 0.09 | 0.33 | (0.24 | ) | (0.24 | ) | 9.94 | |||||||||||||||||||
Year Ended 3/31/18 | 9.97 | 0.20 | (0.12 | ) | 0.08 | (0.20 | ) | (0.20 | ) | 9.85 | ||||||||||||||||||
Year Ended 3/31/17 | 9.92 | 0.17 | 0.05 | 0.22 | (0.17 | ) | (0.17 | ) | 9.97 | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | $10.16 | 0.07 | (0.01 | ) | 0.06 | (0.07 | ) | (0.07 | ) | $10.15 | ||||||||||||||||||
Year Ended 3/31/21 | 9.98 | 0.18 | 0.19 | 0.37 | (0.19 | ) | (0.19 | ) | 10.16 | |||||||||||||||||||
Year Ended 3/31/20 | 9.94 | 0.25 | 0.05 | 0.30 | (0.26 | ) | (0.26 | ) | 9.98 | |||||||||||||||||||
Year Ended 3/31/19 | 9.84 | 0.25 | 0.10 | 0.35 | (0.25 | ) | (0.25 | ) | 9.94 | |||||||||||||||||||
Year Ended 3/31/18 | 9.97 | 0.21 | (0.13 | ) | 0.08 | (0.21 | ) | (0.21 | ) | 9.84 | ||||||||||||||||||
Year Ended 3/31/17 | 9.92 | 0.18 | 0.05 | 0.23 | (0.18 | ) | (0.18 | ) | 9.97 |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
26
FINANCIAL HIGHLIGHTS
RBC Short Duration Fixed Income Fund
(Selected data for a share outstanding throughout the periods indicated)
Ratios/Supplemental Data | ||||||||||||||||||||||||
Total Return(a) | Net Assets, End of 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 9/30/21 (Unaudited) | 0.44%(b) | $ 1,223 | 0.45%(c) | 1.19%(c) | 1.39%(c) | 19% | ||||||||||||||||||
Year Ended 3/31/21 | 6.45% | 419 | 0.45% | 1.70% | 1.58% | 54% | ||||||||||||||||||
Year Ended 3/31/20 | 0.34% | 294 | 0.45% | 2.48% | 2.07% | 33% | ||||||||||||||||||
Year Ended 3/31/19 | 3.44% | 310 | 0.45% | 2.41% | 1.99% | 48% | ||||||||||||||||||
Year Ended 3/31/18 | 0.78% | 526 | 0.45% | 1.98% | 1.71% | 55% | ||||||||||||||||||
Year Ended 3/31/17 | 2.23% | 666 | 0.45% | 1.69% | 1.53% | 37% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | 0.59%(b) | $41,843 | 0.35%(c) | 1.32%(c) | 0.84%(c) | 19% | ||||||||||||||||||
Year Ended 3/31/21 | 6.35% | 64,179 | 0.35% | 1.79% | 0.68% | 54% | ||||||||||||||||||
Year Ended 3/31/20 | 0.45% | 56,016 | 0.35% | 2.53% | 0.79% | 33% | ||||||||||||||||||
Year Ended 3/31/19 | 3.65% | 27,563 | 0.35% | 2.55% | 1.04% | 48% | ||||||||||||||||||
Year Ended 3/31/18 | 0.78% | 25,482 | 0.35% | 2.10% | 0.99% | 55% | ||||||||||||||||||
Year Ended 3/31/17 | 2.33% | 18,366 | 0.35% | 1.78% | 1.12% | 37% |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
(b) | Not annualized. |
(c) | Annualized. |
See Notes to the Financial Statements.
27
FINANCIAL HIGHLIGHTS
RBC Ultra-Short Fixed Income Fund
(Selected data for a share outstanding throughout the periods indicated)
Investment Activities | Distributions | |||||||||||||||||||||||||||
Net Asset Value, Beginning of 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 9/30/21 (Unaudited) | $9.99 | 0.03 | 0.01 | 0.04 | (0.04 | ) | (0.04 | ) | $9.99 | |||||||||||||||||||
Year Ended 3/31/21 | 9.58 | 0.13 | 0.42 | 0.55 | (0.14 | ) | (0.14 | ) | 9.99 | |||||||||||||||||||
Year Ended 3/31/20 | 9.89 | 0.23 | (0.29 | ) | (0.06 | ) | (0.25 | ) | (0.25 | ) | 9.58 | |||||||||||||||||
Year Ended 3/31/19 | 9.84 | 0.24 | 0.06 | 0.30 | (0.25 | ) | (0.25 | ) | 9.89 | |||||||||||||||||||
Year Ended 3/31/18 | 9.90 | 0.18 | (0.06 | ) | 0.12 | (0.18 | ) | (0.18 | ) | 9.84 | ||||||||||||||||||
Year Ended 3/31/17 | 9.87 | 0.14 | 0.04 | 0.18 | (0.15 | ) | (0.15 | ) | 9.90 | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | $9.98 | 0.04 | (0.01 | ) | 0.03 | (0.04 | ) | (0.04 | ) | $9.97 | ||||||||||||||||||
Year Ended 3/31/21 | 9.57 | 0.14 | 0.42 | 0.56 | (0.15 | ) | (0.15 | ) | 9.98 | |||||||||||||||||||
Year Ended 3/31/20 | 9.87 | 0.25 | (0.29 | ) | (0.04 | ) | (0.26 | ) | (0.26 | ) | 9.57 | |||||||||||||||||
Year Ended 3/31/19 | 9.83 | 0.25 | 0.04 | 0.29 | (0.25 | ) | (0.25 | ) | 9.87 | |||||||||||||||||||
Year Ended 3/31/18 | 9.88 | 0.19 | (0.05 | ) | 0.14 | (0.19 | ) | (0.19 | ) | 9.83 | ||||||||||||||||||
Year Ended 3/31/17 | 9.87 | 0.15 | 0.02 | 0.17 | (0.16 | ) | (0.16 | ) | 9.88 |
(a) | Per share net investment income (loss) has been calculated using the average daily shares method. |
28
FINANCIAL HIGHLIGHTS
RBC Ultra-Short Fixed Income Fund
(Selected data for a share outstanding throughout the periods indicated)
Ratios/Supplemental Data | ||||||||||||||||||||||||
Total Return(a) | Net Assets, End of 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 9/30/21 (Unaudited) | 0.38%(b) | $33,268 | 0.38%(c) | 0.70%(c) | 0.54%(c) | 17% | ||||||||||||||||||
Year Ended 3/31/21 | 5.78% | 16,173 | 0.38% | 1.30% | 0.81% | 56% | ||||||||||||||||||
Year Ended 3/31/20 | (0.67)% | 5,745 | 0.38% | 2.34% | 1.07% | 93% | ||||||||||||||||||
Year Ended 3/31/19 | 3.04% | 1,728 | 0.38% | 2.41% | 1.30% | 57% | ||||||||||||||||||
Year Ended 3/31/18 | 1.21% | 1,978 | 0.39%(d) | 1.83% | 1.54% | 68% | ||||||||||||||||||
Year Ended 3/31/17 | 1.84% | 667 | 0.40% | 1.41% | 1.30% | 52% | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
Six Months Ended 9/30/21 (Unaudited) | 0.33%(b) | $98,959 | 0.28%(c) | 0.81%(c) | 0.47%(c) | 17% | ||||||||||||||||||
Year Ended 3/31/21 | 5.89% | 79,747 | 0.28% | 1.42% | 0.77% | 56% | ||||||||||||||||||
Year Ended 3/31/20 | (0.47)% | 34,948 | 0.28% | 2.56% | 0.99% | 93% | ||||||||||||||||||
Year Ended 3/31/19 | 3.04% | 30,249 | 0.28% | 2.57% | 1.07% | 57% | ||||||||||||||||||
Year Ended 3/31/18 | 1.42% | 21,577 | 0.29%(d) | 1.89% | 1.08% | 68% | ||||||||||||||||||
Year Ended 3/31/17 | 1.74% | 14,011 | 0.30% | 1.47% | 1.14% | 52% |
* | During the period, certain fees were contractually or voluntarily reduced and/or reimbursed. If such contractual/voluntary fee reductions and reimbursements had not occurred, the ratio would have been as indicated. |
** | Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
(a) | Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. |
(b) | Not annualized. |
(c) | Annualized. |
(d) | Beginning October 2, 2017, the net operating expenses were contractually limited to 0.38% and 0.28% of average daily net assets for Class A and Class I, respectively. The ratio of net expenses to average net assets represents a blended percentage for the period ended March 31, 2018. |
See Notes to the Financial Statements.
29
September 30, 2021 (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 16 portfolios. Overall responsibility for the management of the Trust is vested in its Board of Trustees (the “Board”). This report includes the following two investment portfolios (each a “Fund” and collectively, the “Funds”):
- RBC Short Duration Fixed Income Fund (“Short Duration Fixed Income Fund”)
- RBC Ultra-Short Fixed Income Fund (“Ultra-Short Fixed Income Fund”)
The Funds offer Class A (formerly Class F) and Class I shares. Class A and Class I shares (intended for investors meeting certain investment minimum thresholds) are not subject to either a front-end sales charge or a contingent deferred sales charge.
RBC Global Asset Management (U.S.) Inc. (“RBC GAM-US” or “Advisor” or “Co-Administrator”) acts as the investment advisor for the Funds. The officers of the Trust (“Fund Management”) are also employees of RBC GAM-US.
2. Significant Accounting Policies
Each Fund is an investment company that follows accounting and reporting guidance under the Financial Accounting Standards Board. Summarized below are the significant accounting policies of the Funds. These policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”). Fund Management follows these policies when preparing financial statements. Fund Management may also be required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The financial statements are as of the close of regular trading on the New York Stock Exchange (“NYSE”).
Security Valuation:
The Trust’s Board of Trustees (the ”Board“) has adopted pricing and valuation procedures for determining the fair value of each Fund’s investments. Fair value of a security is considered to be the price that a fund might reasonably expect to receive upon its current sale in an orderly transaction between market participants.
Fixed income securities, including to-be-announced (“TBA”) commitments and municipal bonds, are generally valued based on evaluated prices received from third-party pricing services or from broker-dealers who make markets in the securities and are generally categorized as Level 2 in the fair value hierarchy (see “Fair Value Measurements” below for additional information). The pricing services utilize both dealer-supplied valuations and electronic data processing techniques that take into account multiple appropriate factors such as institutional-size trading in similar groups of securities, market spreads, interest rates, and fundamental security analytical data including yield, quality, coupon rate, maturity and type of issue.
Mortgage-related securities represent direct or indirect participation in, or are secured by and payable from, mortgage loans secured by real property and include pass-through securities and collateralized mortgage obligations. These securities may be issued or guaranteed by U.S. Government agencies or instrumentalities, or private issuers, including commercial banks, savings and loan institutions, private mortgage insurance bankers and other secondary market issuers. These mortgage-related securities are generally valued by pricing services that use broker-dealer quotations or valuation estimates from their internal pricing models. These pricing models generally consider such factors as current market data, estimated cash flows, market-based yield spreads, and estimated prepayment rates. Securities valued using such techniques and inputs are generally categorized as Level 2 in the fair value hierarchy. To the extent significant inputs are unobservable, the securities will be categorized as Level 3.
30
NOTES TO FINANCIAL STATEMENTS
Exchange-traded futures are valued at the last sale price at the close of the market on the principal exchange on which they are traded and are categorized as Level 1 in the fair value hierarchy. Investments in open-end investment companies (mutual funds) are valued at net asset value and are categorized as Level 1 in the fair value hierarchy.
The Board has delegated to the Funds’ Pricing Committee (“Pricing Committee”) the responsibility for implementing the pricing and valuation procedures, including responsibility for determining the fair value of the Funds’ securities or other assets and liabilities. The Pricing Committee includes representatives of the Funds’ Advisor, and Co-Administrator, including personnel from accounting and operations, investment management, trading, risk management and compliance. The Pricing Committee meets at least quarterly to review and approve Fund valuation matters, including a review of the Funds’ pricing activity and operations, fair value measurements, pricing vendors, policies and procedures, and related controls. At least a quorum of the Pricing Committee shall meet more frequently, as needed, to consider and approve time-sensitive fair valuation matters. The Pricing Committee reports to the Valuation, Portfolio Management and Performance Committee (“Valuation Committee”) of the Board. Members of the Pricing Committee meet with the Valuation Committee and the Board at each of their regularly scheduled meetings to discuss valuation matters and actions taken during the period.
The Board has adopted procedures to determine the fair value of a security when a price is not available from a pricing service or broker- dealer or Fund Management determines that a price provided by a pricing service or broker-dealer does not approximate fair value. Fair valuation may also be used when a significant valuation event affecting the value of a security or market sector is determined to have occurred between the time when a security’s market closes and the time the Fund’s net asset value is calculated. The fair value of the security will be determined in good faith by the Pricing Committee in accordance with procedures and methodologies adopted by the Board. General factors used in determining the fair value of securities include, but are not limited to, fundamental analytical data relating to the security, the issuer and the market, such as duration, prepayment and default rates; general level of interest rates and changes in interest rates; information from broker-dealers; trading in similar securities; any restrictions on disposition of the security; and an evaluation of the forces that influence the market in which the investments are traded. These securities are either categorized as Level 2 or 3 in the fair value hierarchy, depending on the relevant inputs used.
When the Funds utilize fair valuation methods that use significant unobservable inputs to determine a security’s value, such securities will be categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. While the Funds’ policy is intended to result in a calculation of a Fund’s net asset value that fairly reflects security values as of the time of pricing, the Funds cannot guarantee that values determined by the Board or persons acting at their direction would accurately reflect the price that the Funds could obtain for a security if they were to dispose of it as of the time of pricing (for instance, in a forced or distressed sale). The prices used by the Funds may differ from the value that would be realized if the securities were sold.
The Funds’ Pricing Committee employs various methods for calibrating the valuation approach related to securities categorized within Level 2 and Level 3 of the fair value hierarchy. These methods may include regular due diligence of the Funds’ pricing vendors, a regular review of key inputs and assumptions, transaction back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing and stale prices and large movements in market value, and reviews of any market related activities. Additionally, the pricing of all fair value holdings is subsequently reported to the Valuation Committee and Board.
Fair Value Measurements:
The Funds disclose the fair value of their investments in a hierarchy that categorizes investments based on the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows:
• Level 1 - Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access at the measurement date.
31
NOTES TO FINANCIAL STATEMENTS
• Level 2 - Significant inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active. Observable inputs may include quoted prices for similar securities, interest rates, spreads, prepayment spreads, etc.
• Level 3 - Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those securities.
Inputs used in determining fair value of an investment may include, but are not limited to, price information, volatility statistics, credit and market data, and other factors, all of which may be either observable or unobservable. Inputs can vary among investments and will be impacted by the investment type and volume of activity for the particular security or similar securities in the market. Investments in the Level 3 category are generally supported by transactions and quoted prices from dealers participating in the market for those investments. Investments may be included in the Level 3 category due to a lack of market activity or transparency. Internal valuation models may also be used as a pricing source for Level 3 investments. Internal valuation models may rely on one or more unobservable inputs, such as estimated cash flows, financial statement analysis and discount rates.
The summary of inputs used to determine the fair value of the Funds’ investments as of September 30, 2021 is as follows:
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Total | |||||||||||||||||||||||||||||
Short Duration Fixed Income Fund | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||||||||||||
Corporate Bonds | $ | — | $ | 29,049,280 | $ | — | $ | 29,049,280 | ||||||||||||||||||||||||
Asset Backed Securities | — | 13,376,101 | — | 13,376,101 | ||||||||||||||||||||||||||||
Investment Company | 721,030 | — | — | 721,030 | ||||||||||||||||||||||||||||
U.S. Government Agency Backed Mortgages | — | 13,276 | — | 13,276 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total Assets | $ | 721,030 | $ | 42,438,657 | $ | — | $ | 43,159,687 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Other Financial Instruments* | ||||||||||||||||||||||||||||||||
Financial futures contracts | $(2,875 | ) | $— | $ | — | $(2,875 | ) | |||||||||||||||||||||||||
Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Total | |||||||||||||||||||||||||||||
Ultra-Short Fixed Income Fund | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Investments in Securities | ||||||||||||||||||||||||||||||||
Corporate Bonds | $ | — | $ | 93,768,753 | $ | — | $ | 93,768,753 | ||||||||||||||||||||||||
Asset Backed Securities | — | 35,934,590 | — | 35,934,590 | ||||||||||||||||||||||||||||
Investment Company | 2,438,215 | — | — | 2,438,215 | ||||||||||||||||||||||||||||
U.S. Government Agency Backed Mortgages | — | 1,172,667 | — | 1,172,667 | ||||||||||||||||||||||||||||
Other Financial Instruments* | ||||||||||||||||||||||||||||||||
Financial futures contracts | 21,446 | — | — | 21,446 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||
Total Assets | $ | 2,459,661 | $ | 130,876,010 | $ | — | $ | 133,335,671 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
*Other financial instruments are instruments shown on the Schedule of Portfolio Investments, such as futures contracts which are valued at fair value.
32
NOTES TO FINANCIAL STATEMENTS
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 September 30, 2021, Funds do not have any outstanding TBA commitments.
Derivatives:
The Funds may use derivative instruments, including futures, forwards, options, indexed securities, swaps and inverse securities for hedging purposes only. Derivatives allow the Funds to manage their risk exposure more quickly and efficiently than other types of instruments. Derivatives may be riskier than other types of investments and could result in losses that significantly exceed a Fund’s original investment. Derivatives are subject to the risk that changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index. The use of derivatives may not be successful, resulting in losses to a Fund, and the cost of such strategies may reduce the Fund’s returns.
Hedging also involves the risk that changes in the value of the derivative will not match those of the holdings being hedged as expected by the Funds, in which case any losses on the holdings being hedged may not be reduced and may be increased. There can be no assurance that a Fund’s hedging strategy will reduce risk or that hedging transactions will be available or cost effective. The Funds are subject to interest rate risk in the normal course of pursuing their investment objectives by investing in various derivative financial instruments, as described below.
Financial Futures Contracts:
The Funds entered into futures contracts in an effort to manage the duration of the portfolio and hedge against certain market risk. A futures contract on a securities index is an agreement obligating one party to pay, and entitling the other party to receive, during the term of the contract, cash payments based on the level of a specified securities index. Futures transactions involve brokerage costs and require a Fund to segregate assets to cover contracts that would require it to purchase securities or currencies. A Fund may lose the expected benefit of futures transactions if interest rates, exchange rates or securities prices change in an unanticipated manner. Such unanticipated changes may also result in lower overall performance than if a Fund had not entered into any futures transactions.
The Funds entered into U.S. Treasury Notes futures during the period ended September 30, 2021.
Upon entering into a futures contract, a Fund is required to pledge to the broker an amount of cash, U.S. government securities, or other assets equal to a certain percentage of the contract amount. Subsequent payments are made or received by the Funds each day, depending on the daily fluctuations in the fair value of the underlying instrument. A Fund would record an unrealized gain or loss each day equal to these daily payments.
Open futures contracts are shown on the Schedules of Portfolio Investments. Underlying collateral pledged for open futures contracts is the cash at brokers for financial futures contracts shown on the Statements of Assets and Liabilities at September 30, 2021.
33
NOTES TO FINANCIAL STATEMENTS
Fair Values of Derivative Financial Instrument as of September 30, 2021 | ||||||||||||||||
Statement of Assets and Liabilities Location | ||||||||||||||||
Asset Derivatives | ||||||||||||||||
Short Duration Fixed Income Fund | Ultra-Short Fixed Income Fund | |||||||||||||||
Interest Rate Risk: | ||||||||||||||||
Unrealized appreciation on futures contracts | $— | $21,446 | ||||||||||||||
Total | $— | $21,446 | ||||||||||||||
| ||||||||||||||||
Liability Derivatives | ||||||||||||||||
Short Duration Fixed Income Fund | Ultra-Short Fixed Income Fund | |||||||||||||||
Interest Rate Risk: | ||||||||||||||||
Unrealized depreciation on futures contracts | $2,875 | $— | ||||||||||||||
Total | $2,875 | $— |
The effect of derivative instruments on the Statement of Operations during the period ended September 30, 2021 is as follows:
Derivative Instruments Categorized by Risk Exposure | Short Duration Fixed Income Fund | Ultra-Short Fixed Income Fund | ||||||||||||||
Net realized Gain/(Loss) From: | ||||||||||||||||
Interest Rate Risk: | ||||||||||||||||
Financial futures contracts | $(1,749) | $18,877 | ||||||||||||||
Total | $(1,749) | $18,877 | ||||||||||||||
Derivative Instruments Categorized by Risk Exposure | Short Duration Fixed Income Fund | Ultra-Short Fixed Income Fund | ||||||||||||||
Net Change in Unrealized Appreciation/(Depreciation) From: | ||||||||||||||||
Interest Rate Risk: | ||||||||||||||||
Financial futures contracts | $(2,875) | $(45,085) | ||||||||||||||
Total | $(2,875) | $(45,085) |
For the period ended September 30, 2021, the average volume of derivative activities based on ending quarterly outstanding amounts are as follows:
Short Duration Fixed Income Fund | Ultra-Short Fixed Income Fund | |||||||||||||||
Futures long position (contracts) | 12 | — | ||||||||||||||
Futures short position (contracts) | — | �� | 173 |
34
NOTES TO FINANCIAL STATEMENTS
Counterparty Credit Risk:
Derivatives may also expose a Fund to counterparty risk (the risk that the derivative counterparty will not fulfill its contractual obligations). To the extent amounts due to the Funds from their counterparties are not fully collateralized contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. A Fund’s maximum risk of loss from counterparty credit risk on over-the-counter (“OTC”) derivatives is generally the aggregate unrealized gain in excess of any collateral pledged by the counterparty to the Funds.
With exchange-traded futures, the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Funds do not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency) of the clearing broker or clearinghouse. Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
Affiliated Investments:
The Funds invest in another Fund of the Trust (an “Affiliated Fund”), U.S. Government Money Market Fund-RBC Institutional Class 1, as a cash sweep vehicle. The income earned by the Funds from the Affiliated Fund for the period is disclosed in the Statement of Operations. The table below details the transactions of the Funds in the Affiliated Fund.
Value March 31, 2021 | Purchases | Sales | Value September 30, 2021 | Dividends | ||||||||||||||||
Investments in U.S. Government Money Market Fund —RBC Institutional Class 1 |
| |||||||||||||||||||
Short Duration Fixed Income Fund | $1,065,250 | $ | 9,937,128 | $ | 10,281,348 | $ 721,030 | $194 | |||||||||||||
Ultra-Short Fixed Income Fund | 7,352,789 | 67,482,544 | 72,397,118 | 2,438,215 | 541 |
Credit Enhancement:
Certain obligations held by the Funds have credit enhancement or liquidity features that may, under certain circumstances, provide for repayment of principal and interest on the obligation upon demand date, interest rate reset date or final maturity. These enhancements may include: letters of credit; liquidity guarantees; security purchase agreements; tender option purchase agreements and third party insurance.
Investment Transactions and Income:
Investment transactions are recorded on trade date. Dividend income is recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Realized gains and losses from investment transactions are calculated based on the cost of the specific security (also known as identified cost basis). Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount using the effective yield method. Paydown gains and losses on mortgage- and asset-backed securities are included in the financial statements as interest income.
Expense, Investment Income and Gain/Loss Allocation:
Each Fund pays the expenses that are directly related to its operations, such as custodian fees or advisory fees. Expenses incurred by the Trust, such as trustee or legal fees, are allocated among each of the Funds in the Trust either proportionately based upon each Fund’s relative net assets or using another reasonable basis such as equally across all Funds in the Trust, depending on the nature of the expense. Individual share classes within a Fund are charged expenses specific to that class, such as distribution fees and transfer agent fees. Within a Fund, expenses other than class specific expenses are allocated daily to each class based upon the proportion of relative net assets. Investment income and realized and unrealized gains or losses are allocated to each class of shares based on relative net assets.
35
NOTES TO FINANCIAL STATEMENTS
Distributions to Shareholders:
The Funds pay out any income that it receives, less expenses, in the form of dividends and capital gains to its shareholders. Income dividends are declared daily and paid monthly. Capital gain distributions are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions are calculated based on federal income tax regulations, which may differ from US GAAP. These ”book/tax“ differences may be either temporary or permanent in nature. To the extent these differences are determined, as of the end of the tax year, to be permanent (e.g., reclassification of paydown gains and losses), they are reclassified within a Fund’s capital account based on their federal tax basis treatment.
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 Fund’s assets and furnishes related office facilities, equipment, research and personnel. The agreement requires each Fund to pay RBC GAM-US a monthly fee based upon average daily net assets. Under the terms of the agreement, RBC GAM-US is entitled to receive fees based on a percentage of the average daily net assets of each of the Funds as follows:
Annual Rate | ||||
Short Duration Fixed Income Fund | 0.30% | |||
Ultra-Short Fixed Income Fund | 0.23% |
RBC GAM-US has contractually agreed to waive fees and/or make payments in order to keep total operating expenses (excluding certain fees such as interest, taxes and acquired fund fees and expenses) of Class A and Class I shares of each Fund to the following levels. This expense limitation agreement is in place until July 31, 2023.
Class A Annual Rate | Class I Annual Rate | |||||||
Short Duration Fixed Income Fund | 0.45% | 0.35% | ||||||
Ultra-Short Fixed Income Fund | 0.38% | 0.28% |
The Advisor is entitled to recoup from the Fund or class the fees and/or operating expenses waived or reimbursed during any of the previous 3 years, provided the Fund is able to do so and remain in compliance with the expense limitation in place at the time the fees were waived or expenses paid.
The amounts subject to possible recoupment under the expense limitation agreement as of September 30, 2021 were:
FYE 3/31/19 | FYE 3/31/20 | FYE 3/31/21 | FYE 3/31/22 | Total | ||||||||||||||||
Short Duration Fixed Income Fund | $102,633 | $184,217 | $217,611 | $108,406 | $612,867 | |||||||||||||||
Ultra-Short Fixed Income Fund | 119,276 | 206,451 | 260,145 | 103,995 | 689,867 |
36
NOTES TO FINANCIAL STATEMENTS
RBC GAM-US voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to RBC GAM-US indirectly through its investment in an affiliated money market fund. These waivers are voluntary and not subject to recoupment. These amounts are included in expenses waived/reimbursed by Advisor in the Statements of Operations. For the period ended September 30, 2021, the amounts waived were as follows:
Fees Waived | ||||
Short Duration Fixed Income Fund | $1,131 | |||
Ultra-Short Fixed Income Fund | 3,106 |
RBC GAM-US serves as co-administrator to the Funds. BNY Mellon Investment Servicing (US) Inc. (”BNY Mellon“) serves as co-administrator and fund accounting agent. Services provided under the administrative services contract include providing day-to-day administration of matters related to the Funds, maintenance of their records and the preparation of reports. Under the terms of the administrative services contract, RBC GAM-US does not receive a fee for its role as co-administrator. BNY Mellon receives a fee for its services payable by the Funds based in part on the Funds’ average net assets. BNY Mellon’s fee is included with “Accounting fees” in the Statements of Operations.
Certain Officers and Trustees of the Trust are affiliated with the Advisor. Such Officers and Trustees receive no compensation from the Funds for serving in their respective roles.
The Trust currently pays each of the independent trustees (trustees of the Trust who are not directors, officers or employees of the Advisor, either Co-Administrator or Distributor) an annual retainer of $68,000. The Board Chairperson and Audit Committee Chairperson each receive an additional retainer 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:
Each of the Funds has adopted a Master Distribution 12b-1 Plan (the “Plan”) in which Quasar Distributors LLC (the “Distributor”) acts as the Funds’ distributor. The Plan permits each Fund to make payments for or to reimburse the Distributor for distribution-related costs and expenses of marketing shares of Class A covered under the Plan, and/or for providing shareholder services. The Plan does not apply to Class I. The current Plan fee rate for Class A is 0.10%.
Plan fees are based on average daily net assets of Class A. The Distributor, subject to applicable legal requirements, may waive a Plan fee voluntarily, in whole or in part. For the period ended September 30, 2021, there were no fees waived by the Distributor.
5. Securities Transactions:
The cost of securities purchased and proceeds from securities sold (excluding securities maturing less than one year from acquisition) for the period ended September 30, 2021 were as follows:
Purchases | Sales (Excl. U.S. Gov’t) | Purchases | Sales | |||||
Short Duration Fixed Income Fund | $ 8,353,386 | $28,827,558 | $ — | $3,246 | ||||
Ultra-Short Fixed Income Fund | 58,286,543 | 19,164,951 | 1,177,531 | 8,493 |
37
NOTES TO FINANCIAL STATEMENTS
6. Capital Share Transactions:
The Trust is authorized to issue an unlimited number of shares of beneficial interest (“shares outstanding”) without par value. Transactions in capital stock of the Funds are summarized on the following pages:
Short Duration Fixed Income Fund | Ultra-Short Fixed Income Fund | |||||||||||||||
For the Six Months Ended September 30, 2021 (Unaudited) | For the Year Ended March 31, 2021 | For the Six Months Ended September 30, 2021 (Unaudited) | For the Year Ended March 31, 2021 | |||||||||||||
CAPITAL TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | $ | 849,000 | $ | 709,715 | $ | 23,073,886 | $ | 12,835,122 | ||||||||
Distributions reinvested | 4,346 | 7,561 | 89,370 | 134,440 | ||||||||||||
Cost of shares redeemed | (47,021 | ) | (614,498 | ) | (6,033,760 | ) | (2,839,365 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A | $ | 806,325 | $ | 102,778 | $ | 17,129,496 | $ | 10,130,197 | ||||||||
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|
|
|
|
|
|
| |||||||||
Class I | ||||||||||||||||
Proceeds from shares issued | $ | 5,982,317 | $ | 21,794,611 | $ | 64,180,405 | $ | 80,154,732 | ||||||||
Distributions reinvested | 281,627 | 1,193,085 | 355,826 | 580,363 | ||||||||||||
Cost of shares redeemed | (28,559,382 | ) | (17,352,591 | ) | (45,225,081 | ) | (37,477,473 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I | $ | (22,295,438 | ) | $ | 5,635,105 | $ | 19,311,150 | $ | 43,257,622 | |||||||
|
|
|
|
|
|
|
| |||||||||
Change in net assets resulting from capital transactions | $ | (21,489,113 | ) | $ | 5,737,883 | $ | 36,440,646 | $ | 53,387,819 | |||||||
|
|
|
|
|
|
|
| |||||||||
SHARE TRANSACTIONS: | ||||||||||||||||
Class A | ||||||||||||||||
Issued | 83,336 | 70,845 | 2,307,546 | 1,290,212 | ||||||||||||
Reinvested | 427 | 744 | 8,938 | 13,499 | ||||||||||||
Redeemed | (4,617 | ) | (60,614 | ) | (603,564 | ) | (284,952 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class A | 79,146 | 10,975 | 1,712,920 | 1,018,759 | ||||||||||||
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|
|
|
| |||||||||
Class I | ||||||||||||||||
Issued | 587,721 | 2,147,703 | 6,427,021 | 8,042,106 | ||||||||||||
Reinvested | 27,686 | 117,499 | 35,636 | 58,388 | ||||||||||||
Redeemed | (2,806,652 | ) | (1,710,568 | ) | (4,530,026 | ) | (3,763,365 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Class I | (2,191,245 | ) | 554,634 | 1,932,631 | 4,337,129 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in shares resulting from capital transactions | (2,112,099 | ) | 565,609 | 3,645,551 | 5,355,888 | |||||||||||
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|
|
|
|
|
|
|
7. Federal Income Taxes:
It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined under Subchapter M of the Internal Revenue Code, and to distribute substantially all of its net investment income and net realized capital gains. Therefore, no federal tax liability is recorded in the financial statements of each Fund.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
38
NOTES TO FINANCIAL STATEMENTS
As of September 30, 2021, the tax cost of investments and the breakdown of unrealized appreciation (depreciation) for each Fund was as follows:
Tax Cost Of Investments | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) | |||||||||||||
Short Duration Fixed Income Fund | $ 42,783,276 | $407,568 | $(31,157) | $376,411 | ||||||||||||
Ultra-Short Fixed Income Fund | 133,134,102 | 353,531 | (173,408 | ) | 180,123 |
The difference between book basis and tax basis unrealized appreciation/depreciation is attributable to the mark to market on derivatives.
The tax character of distributions during the year ended March 31, 2021 were as follows:
Distributions Paid From | ||||||||||||
Ordinary Income | Total Taxable Distributions | Total Distributions Paid | ||||||||||
Short Duration Fixed Income Fund | $ | 1,200,990 | $ | 1,200,990 | $ | 1,200,990 | ||||||
Ultra-Short Fixed Income Fund | 783,235 | 783,235 | 783,235 |
Total distributions paid may differ from the Statements of Changes in Net Assets because distributions are recognized when actually paid for tax purposes.
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 March 31, 2022.
As of March 31, 2021, Ultra-Short Fixed Income Fund had a short-term capital loss carryforward of $148,670 and a long-term capital loss carryforward of $28,898, available to offset future realized capital gains in accordance with the Regulated Investment Company Modernization Act of 2010. This capital loss carryforward is not subject to expiration.
During the year ended March 31, 2021 the Short Duration Fixed Income Fund and Ultra-Short Fixed Income Fund utilized $469,025 and $366,638, respectively, of capital loss carryforwards.
Under current tax law, capital losses realized after October 31 and ordinary losses after December 31 of a Fund’s fiscal year may be deferred and treated as occurring on the first business day of the following fiscal year for tax purposes. The Short Duration Fixed Income Fund and Ultra-Short Fixed Income Fund did not have any deferred qualified late-year capital losses.
8. Line of Credit
The Funds, along with other Funds within the Trust, participate in an uncommitted, secured $500,000,000 line of credit with U.S. Bank, N.A. (the “Bank”), the Funds’ custodian, to be used to fund shareholder redemption requests and for other short-term temporary or emergency general business purposes. The line of credit has a scheduled termination date of July 30, 2022. Interest is charged on borrowings under this line of credit at the Bank’s prime lending rate per annum. Since multiple funds within the Trust participate in this line of credit, there is no assurance that an individual fund will have access to all or any part of the $500,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at September 30, 2021 and there were no borrowings made by the Funds during the period.
39
NOTES TO FINANCIAL STATEMENTS
9. Significant Risks
Shareholder concentration risk:
As of September 30, 2021, the following Funds had omnibus accounts which each owned more than 10% of a Fund’s outstanding shares as shown below:
# of Omnibus Accounts | % of Fund | |||||
Short Duration Fixed Income Fund | 3 | 92.7% | ||||
Ultra-Short Fixed Income Fund | 1 | 50.2% |
In addition, an unaffiliated shareholder owned 26.2% of the Ultra-Short Fixed Income Fund as of September 30, 2021. Significant transactions by these shareholders may impact the Funds’ performance.
Market risk
One or more markets in which a Fund invests may go down in value, sometimes sharply and unpredictably, and the value of a Fund’s portfolio securities may fall or fail to rise. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. In addition, global economies and financial markets are becoming increasingly interconnected, and political, economic and other conditions and events (including, but not limited to, natural disasters, pandemics, epidemics, and social unrest) in one country, region, or financial market may adversely impact issuers in a different country, region or financial market. Furthermore, the occurrence of, among other events, natural or man-made disasters, severe weather or geological events, fires, floods, earthquakes, outbreaks of disease (such as COVID-19, avian influenza or H1N1/09), epidemics, pandemics, malicious acts, cyber-attacks, terrorist acts or the occurrence of climate change, may also adversely impact the performance of a Fund. Such events could adversely impact issuers, markets and economies over the short- and long-term, including in ways that cannot necessarily be foreseen. A Fund could be negatively impacted if the value of a portfolio holding were harmed by such political or economic conditions or events. Moreover, such negative political and economic conditions and events could disrupt the processes necessary for a Fund’s operations.
10. 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.
40
The Funds offer Class A and Class I shares.
Class A
Class A shares are intended for investors meeting certain minimum investment thresholds. This share class does not have an up-front sales charge (load). Class A shares currently include a 0.10% (10 bps) annual 12b-1 service and distribution fee.
Class I
Class I shares are intended for investors meeting certain minimum investment thresholds. This share class does not have an up-front sales charge (load) or a 12b-1 service and distribution fee.
41
Shareholder Expense Examples
As a shareholder of 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 April 1, 2021 through September 30, 2021.
Actual Expenses
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Beginning | Ending | Expenses Paid | Annualized | |||||
Short Duration Fixed Income Fund | ||||||||
Class A | $1,000.00 | $1,004.40 | $2.26 | 0.45% | ||||
Class I | 1,000.00 | 1,005.90 | 1.76 | 0.35% | ||||
Ultra-Short Fixed Income Fund | ||||||||
Class A | 1,000.00 | 1,003.80 | 1.91 | 0.38% | ||||
Class I | 1,000.00 | 1,003.30 | 1.41 | 0.28% |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 183/365 (to reflect one half year period).
42
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 | Ending | Expenses Paid | Annualized Expense Ratio During Period | |||||
Short Duration Fixed Income Fund | ||||||||
Class A | $1,000.00 | $1,022.81 | $2.28 | 0.45% | ||||
Class I | 1,000.00 | 1,023.31 | 1.78 | 0.35% | ||||
Ultra-Short Fixed Income Fund | ||||||||
Class A | 1,000.00 | 1,023.16 | 1.93 | 0.38% | ||||
Class I | 1,000.00 | 1,023.66 | 1.42 | 0.28% |
*Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by 183/365 (to reflect one half year period).
43
Information Regarding the Approval of Investment Advisory Agreements
In September 2021, after evaluating the services provided by RBC Global Asset Management (U.S.) Inc. (the “Advisor”) and reviewing the performance, fees, and expenses of the Funds, the RBC Funds Board of Trustees determined to approve the continuation of the investment advisory agreements with the Advisor (the “Agreements”) for each Fund. Additionally, in July 2021, the RBC Funds Board of Trustees determined to approve a new investment advisory agreement (“New Agreement” and collectively with the Agreement, “Agreements”) with the Advisor for the Funds to take effect on or about November 1, 2021. The implementation of this new Agreement, which was approved by shareholders of each of the Funds on September 30, 2021, was intended to reflect certain structural changes anticipated as a result of the pending merger of the Advisor with one of its affiliates, BlueBay Asset Management USA LLC.
As part of their review of the Agreements, the Trustees requested and considered information regarding the services performed by the Advisor; the staffing and qualifications of the personnel responsible for operating and managing the Funds; and the Funds’ performance, fees, and expenses. The Trustees considered information provided at regular quarterly Board and Committee meetings throughout the year, information presented at each of a special meeting held to review the proposed New Agreement, a special meeting held to review requested material related to the proposed renewals and a regular meeting at which the proposed renewals were considered, and their experience with the portfolio management team with regard to other products over the years. The information included material provided by the Advisor, as well as reports prepared by Broadridge Financial Solutions, Inc., an independent statistical compilation company providing comparative fee and expense information and comparative performance information for the Funds. In connection with their deliberations, the independent Trustees were advised by independent legal counsel with regard to the materials and their responsibilities under relevant laws and regulations.
The Trustees met with representatives from the Advisor’s senior management team, as well as senior investment professionals from the Advisor, to discuss the information and the ongoing management of the Funds. The Trustees reviewed the nature, quality, and extent of the services provided to the Funds by the Advisor, including information as to each Fund’s performance relative to appropriate index benchmarks and their respective Morningstar categories as well as information with respect to custom peer groups designed to align more closely with the Funds’ specific investment strategies. The Trustees noted that the performance of the RBC Ultra-Short Fixed Income Fund had ranked in the top quartile of its peers since its inception.
The Trustees reviewed the Funds’ expense structure and advisory fees. The Trustees also considered, and viewed favorably, the Advisor’s contractual agreement to subsidize Fund expenses. The Trustees continued to be satisfied with the Advisor’s approach of providing profitability information so that the Advisor and Trustees could evaluate possible future economies of scale that might warrant contractual advisory fee breakpoints. The Trustees’ considerations included other benefits derived by the Advisor from its relationship with the Funds.
In considering the nature and quality of services provided by the Advisor to the Funds, the Trustees considered the significant depth and experience of the Advisor’s team with regard to management of shorter duration portfolios, and their demonstrated capabilities with respect to research, credit, and fundamental analysis, as well as the Advisor’s operational and compliance structure and systems. The Trustees expressed confidence in the Advisor’s investment team and were satisfied with the nature, extent, and quality of the advisory and other services provided to the Funds.
Based upon their review, the Trustees determined that the advisory fees payable to the Advisor were reasonable and fair in view of the level and quality of the services to be provided by the Advisor under all the circumstances and were within the range of what might have been negotiated at arms’ length. The Trustees approved the Agreements, as well as the continuation of the expense limitation arrangements for each Fund for an additional year. In arriving at their collective decision to approve the Agreements, the Trustees did not assign relative weights to the factors discussed above or deem any one or group of them to be controlling in and of itself.
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RBC Funds
P.O. Box 701
Milwaukee, WI 53201-0701
800-422-2766
www.rbcgam.com
Performance data represents past performance and does not guarantee future results. The principal value of an investment and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
This report and the financial statements contained herein are provided for the information of RBC Funds shareholders. This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus, which contains information concerning investment objectives, risks, charges and expenses of the funds. Please read the prospectus carefully before investing.
This report and the financial statements contained herein are not intended to be a forecast of future events, a guarantee of future results, or investment advice. There is no assurance that certain securities will remain in or out of each fund’s portfolio. The views expressed in this report reflect those of the portfolio managers through the period ended September 30, 2021.
NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
RBC Global Asset Management (U.S.) Inc. serves as investment advisor for the RBC Funds. RBC Funds are distributed by Quasar Distributors LLC.
The RBC Funds are pleased to offer shareholder reports printed entirely on Forest Stewardship Council® certified paper. FSC® certification ensures that the paper used in this report contains fiber from well-managed and responsibly harvested forests that meet strict environmental and socioeconomic standards.
RBCF-FI SAR 09-21
(b) | Not applicable. |
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. |
(b) | Not applicable. |
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. | Controls and Procedures. |
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
Item 13. | Exhibits. |
(a)(1) | Not applicable. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
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 | 12/1/2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Kathleen A. Gorman | |
Kathleen A. Gorman, President and Chief Executive Officer | ||
(principal executive officer) |
Date | 12/1/2021 |
By (Signature and Title)* | /s/ Kathleen A. Hegna | |
Kathleen A. Hegna, Treasurer and Chief Financial Officer | ||
(principal financial officer) |
Date | 12/1/2021 |
* Print the name and title of each signing officer under his or her signature.