RBC Strategic Asset Allocation Models

Transcription

1 Page 1 of 7 United States Traditional Fixed Income Only Last updated: March 218 Fixed Income Only The focus is capital preservation. The portfolio is only invested in fixed income asset classes. The investor in this category has a very low tolerance for loss over their investment horizon Asset allocation model Fixed Income 98 US Government Fixed Income 38 4 International Fixed Income 11 Emerging Markets Fixed Income - Equity - US Large Cap Equity - US Mid Cap Equity - US Small Cap Equity - International Equity - Emerging Markets Equity - Total 1 4 Hypothetical model performance (January December 217) value (=1) Calendar year returns () (January to December 217) Return (annualized) 7.17 Risk (standard deviation) ( to 1 year horizon, Return (annualized) 2.48 Risk (standard deviation) 4.14 Drawdown () Non-deposit investment products: Not FDIC insured Not bank guaranteed May lose value

2 Page 2 of 7 United States Traditional Very conservative Last updated: March 218 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 78 US Government Fixed Income 3 36 International Fixed Income 9 Emerging Markets Fixed Income - Equity 2 US Large Cap Equity 12 US Mid Cap Equity - US Small Cap Equity - International Equity 8 Emerging Markets Equity - Total 1 3 Hypothetical model performance (January December 217) value (=1) Calendar year returns () (January to December 217) Return (annualized) 8.1 Risk (standard deviation) ( to 1 year horizon, Return (annualized) 3.26 Risk (standard deviation) 4.79 Drawdown ()

3 Page 3 of 7 United States Traditional Conservative Last updated: March 218 Risk Profile 2 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 8 US Government Fixed Income International Fixed Income 8 Emerging Markets Fixed Income 4 Equity 4 US Large Cap Equity 18 US Mid Cap Equity 6 US Small Cap Equity - International Equity 16 Emerging Markets Equity - Total 1 4 Hypothetical model performance (January December 217) value (=1) Calendar year returns () (January to December 217) Return (annualized) 9. Risk (standard deviation) ( to 1 year horizon, Return (annualized) 4.24 Risk (standard deviation) 7.17 Drawdown ()

4 Page 4 of 7 United States Traditional Balanced Last updated: March 218 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 December 217) value (=1) Asset allocation model Fixed Income 38 US Government Fixed Income 9 13 International Fixed Income 8 Emerging Markets Fixed Income 4 Equity 6 US Large Cap Equity 24 US Mid Cap Equity 9 US Small Cap Equity 3 International Equity 2 Emerging Markets Equity 4 Total 1 4 Calendar year returns () (January to December 217) Return (annualized) 9.89 Risk (standard deviation) ( to 1 year horizon, Return (annualized).29 Risk (standard deviation) 9.97 Drawdown ()

5 Page of 7 United States Traditional Growth Last updated: March 218 Risk Profile 4 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 December 217) value (=1) Asset allocation model Fixed Income 18 US Government Fixed Income 3 International Fixed Income 3 Emerging Markets Fixed Income 3 Equity 8 US Large Cap Equity 32 US Mid Cap Equity 1 US Small Cap Equity 6 International Equity 26 Emerging Markets Equity 6 Total Calendar year returns () (January to December 217) Return (annualized) 1.7 Risk (standard deviation) ( to 1 year horizon, Return (annualized) 6.21 Risk (standard deviation) Drawdown ()

6 Page 6 of 7 United States Traditional Aggressive Growth Last updated: March 218 Risk Profile The focus is the maximization of long term capital appreciation. The portfolio will be invested mainly in growth assets and may have a greater proportion of higher risk investments and possible concentrations. The investor in this category has a high tolerance for risk over their investment horizon. Hypothetical model performance (January December 217) 2 98 value (=1) Asset allocation model Fixed Income - US Government Fixed Income - International Fixed Income - Emerging Markets Fixed Income - Equity 98 US Large Cap Equity 38 US Mid Cap Equity 13 US Small Cap Equity 7 International Equity 33 Emerging Markets Equity 7 Total Calendar year returns () (January to December 217) Return (annualized) 11. Risk (standard deviation) ( to 1 year horizon, Return (annualized) 6.88 Risk (standard deviation) Drawdown ()

7 Page 7 of 7, continued The following indices have been used for each asset class: US Cash - Citigroup 1 Month CD; US Government Fixed Income Bloomberg Barclays US Aggregate - Government; US Corporate Fixed Income Bloomberg Barclays US Aggregate - Corporate ; US Corporate Fixed Income Bloomberg Barclays US Aggregate - Corporate ; International Fixed Income Citigroup Non-USD WGBI (USD Hedged); Emerging Markets Fixed Income JPM EMBI Global Diversified (Local); US Large Cap Equity S&P Total Return; US Mid Cap Equity S&P MidCap 4 Total Return; US Small Cap Equity S&P Small Cap 6 Total Return; International Equity MSCI EAFE (Net); Emerging Markets Equity MSCI Emerging Markets (Net). Prior to January 21, which is the first month when all indices became available, the following re-weighting methodology is used: Prior to Jan 21: Emerging Markets Equity is allocated to the International Equity. Prior to February : US Small Cap Equity is represented by the Russell 2 Total Return. Prior to January : Emerging Markets Fixed Income is allocated to International Fixed Income. Prior to January : US Mid Cap Equity is represented by the Russell Midcap Total Return. 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. RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC. 218 All rights reserved (3/18)