RBC Strategic Asset Allocation Models

Transcription

1 Page 1 of United States Core Very conservative Last updated: April 17 Risk Profile 1 The focus is capital preservation. The portfolio will typically be invested mainly in fixed income and other low volatility instruments with a small allocation to equities to provide some protection against inflation. The investor in this category has a low tolerance for loss over their investment horizon Asset allocation model Fixed Income 77 US Government Fixed Income High Yield 3 International Fixed Income Emerging Market Fixed Income - Alternative Fixed Income 7 Equity 1 US Large Cap Equity 11 US Mid Cap Equity - US Small Cap Equity - International Equity 7 Emerging Market Equity - Alternative Equity - Real Asset 3 Total 1 - Hypothetical model performance (January 199 December 1) value (199=1) Calendar year returns () (January 199 to December 1) Return (annualized).5 Risk (standard deviation).9 (5 to 1 year horizon, Return (annualized). Risk (standard deviation) Drawdown () Non-deposit investment products: Not FDIC insured Not bank guaranteed May lose value

2 Page of United States Core Conservative Last updated: April 17 Risk Profile The focus is wealth preservation which includes an element of growth to retain the real (inflation-adjusted) value of the portfolio. The portfolio will typically include fixed income instruments as well as some exposure to growth assets. The investor in this category has some tolerance for loss over their investment horizon Asset allocation model Fixed Income 1 US Government Fixed Income 1 High Yield International Fixed Income 7 Emerging Market Fixed Income 3 Alternative Fixed Income Equity 3 US Large Cap Equity 1 US Mid Cap Equity US Small Cap Equity - International Equity 1 Emerging Market Equity - Alternative Equity Real Asset 3 Total 1 3 Hypothetical model performance (January 199 December 1) value (199=1) Calendar year returns () (January 199 to December 1) Return (annualized) 7.55 Risk (standard deviation). (5 to 1 year horizon, Return (annualized).9 Risk (standard deviation) Drawdown ()

3 Page 3 of United States Core Balanced Last updated: April 17 Risk Profile 3 The focus is a balance between capital appreciation and wealth preservation. The portfolio may include exposure to all asset classes and carries moderate risk of loss over the investment horizon. Hypothetical model performance (January 199 December 1) 1 53 value (199=1) 1 Asset allocation model Fixed Income 1 US Government Fixed Income 7 High Yield 13 International Fixed Income 7 Emerging Market Fixed Income 3 Alternative Fixed Income Equity 53 US Large Cap Equity 19 US Mid Cap Equity 5 US Small Cap Equity 3 International Equity 15 Emerging Market Equity 3 Alternative Equity Real Asset Total 1 3 Calendar year returns () (January 199 to December 1) Return (annualized).15 Risk (standard deviation).5 (5 to 1 year horizon, Return (annualized).1 Risk (standard deviation) Drawdown ()

4 Page of United States Core Growth Last updated: April 17 Risk Profile The focus is long term capital appreciation with a secondary focus on wealth preservation. The majority of the portfolio will typically be invested in a blend of growth assets. The investor in this category has a higher tolerance for risk over their investment horizon. Hypothetical model performance (January 199 December 1) value (199=1) Asset allocation model Fixed Income US Government Fixed Income 3 High Yield International Fixed Income Emerging Market Fixed Income 3 Alternative Fixed Income 5 Equity 5 US Large Cap Equity US Mid Cap Equity US Small Cap Equity 3 International Equity 1 Emerging Market Equity Alternative Equity 1 Real Asset 5 Total 1 9 Calendar year returns () (January 199 to December 1) Return (annualized).3 Risk (standard deviation) 1.15 (5 to 1 year horizon, Return (annualized).57 Risk (standard deviation) Drawdown ()

5 Page 5 of United States Core Aggressive growth Last updated: April 17 Risk Profile 5 The focus is the maximization of long term capital appreciation. The portfolio will be invested mainly in growth assets and may have a higher proportion of higher risk investments and possible concentrations. The investor in this category has a high tolerance for risk over their investment horizon. 9 Asset allocation model Fixed Income - US Government Fixed Income - High Yield International Fixed Income - Emerging Market Fixed Income - Alternative Fixed Income - Equity 9 US Large Cap Equity 3 US Mid Cap Equity 1 US Small Cap Equity 5 International Equity Emerging Market Equity 5 Alternative Equity 1 Real Asset Total Hypothetical model performance (January 199 December 1) value (199=1) Calendar year returns () (January 199 to December 1) Return (annualized).3 Risk (standard deviation) (5 to 1 year horizon, Return (annualized) 7.5 Risk (standard deviation) Drawdown ()

6 Page of, continued The following indices have been used to represent each asset class when calculating historical performance and other statistics: US Cash = Citigroup 1 Month CD (USD); US Government Fixed Income = Bloomberg Barclays US Aggregate Government; US Corporate Fixed Income = Bloomberg Barclays US Aggregate Corporate ; US Corporate Fixed Income High Yield = Bank of America Merrill Lynch US High Yield; International Fixed Income = Citi Non-USD WGBI (USD) Hedged; Emerging Markets Fixed Income = JP Morgan EMBI Global Diversified; US Large Cap Equity = S&P 5 Total Return; US Mid Cap Equity = S&P MidCap Total Return; US Small Cap Equity = S&P SmallCap Total Return; International (EAFE) Equity = MSCI EAFE (Net); Emerging Markets Equity = MSCI Emerging Markets (Net); Alternative Fixed Income = HFRI Relative Value (Total), 5 HFRI Macro (Total), and 15 HFRI Event Driven (Total); Alternative Equity = HFRI Equity Hedge (Total), 5 HFRI Event Driven (Total), and 15 HFRI Macro (Total); Real Assets = 5 MSCI World Index Real Estate (Net) and 5 Bloomberg Commodity Index Total Return. Prior to January 1, which is the first common month of performance for the aforementioned indices, the following reweighting methodology is used. Prior to January 1: Emerging Markets Equity = MSCI Emerging Markets (Gross) index. Prior to February 199: US Mid Cap Equity and US Small Cap Equity are represented by the Russell Midcap Total Return and Russell Total Return indices, respectively. Prior to January 199: the Emerging Markets Fixed Income allocation is reallocated to International Fixed Income. Prior to February : Commodities is represented by the S&P GSCI Total Return. Prior to April : the MSCI World Index Real Estate allocation is represented by the FTSE EPRA/NAREIT Developed Total Return. Prior to January 199 no reliable proxy for Alternative Fixed Income and Alternative Equity are available. As a result, historical performance and other statistics for the United States Core Allocation is not provided. The performance of these models do not reflect advisory fees, commissions or taxes. These asset allocation models represent possible allocations based on responses to questions regarding personal circumstances, financial goals and individual risk tolerance. Asset allocation is only one of the pieces having varying degrees of importance in the overall performance of an investment vehicle. Past performance is never a guarantee of future results. Thus, there is no guarantee or assurances that the portfolio you choose will produce the same results as any of the portfolio asset allocation models illustrated. The estimated expected return rates are forward looking projections based on current market conditions. The following components are considered when determining estimated return rates: forward looking assumptions, historical returns, dividend yield, rate of corporate earnings growth, and changes in the price/ earnings ratio, projected inflation, asset class risk premiums and on more subjective considerations that involve economic forecasting. This information is not intended to be used as the primary basis of investment decisions. Because of individual client requirements, it should not be construed as advice designed to meet particular investment needs of any investor. The illustrated models are based on different indexes which cannot be invested in. Therefore, estimated expected return rates should not be construed as projecting actual returns of your specific investments. International investing involves risks not typically associated with U.S. investing, including currency fluctuation, foreign taxation, political instability and different accounting standards. Investing in alternative investments is speculative, not suitable for all clients, and intended for experienced and sophisticated investors who are willing to bear the high economic risks of the investment. RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC. 17 All rights reserved. 379 (9/17)