# RBC Canadian Equity Income Series D



## wandernorth (Mar 30, 2012)

I like the fund but hate 1.2% MER . Any ETF has the similar underline stocks?


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## fatcat (Nov 11, 2009)

yea, VCE for .09


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## Belguy (May 24, 2010)

What about this one?

http://ca.ishares.com/product_info/fund/overview/XEI.htm

Any opinions?


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## wandernorth (Mar 30, 2012)

Neither XEI nor VCE can match the return of RBF1018


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## Mookie (Feb 29, 2012)

RBC Canadian Equity Income is one of my favorites as well. I know ETFs with low MERs are in fashion, but I find it very difficult to find anything as rock solid overall as RBC Canadian Equity Income, even with the higher MER. Generally I am willing to pay a higher MER if the bottom line overall performance of the fund is better.


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## leoc2 (Dec 28, 2010)

Belguy said:


> What about this one?
> 
> http://ca.ishares.com/product_info/fund/overview/XEI.htm
> 
> Any opinions?


found this for you
http://canadiancouchpotato.com/2011/09/20/balancing-your-dividend-holdings/


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## fatcat (Nov 11, 2009)

wandernorth said:


> Neither XEI nor VCE can match the return of RBF1018


right, i was looking at 1015 not 1018 ... i did a google chart against XDV and CDZ and your fund has great performance ... maybe worth the 1.21 ... can you point me to a page that has all their holdings on it ? ... i can't find one


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## Argonaut (Dec 7, 2010)

Yield is 1.86% and MER is 1.21%. After taxes the yield is non-existent. I want to design a monthly income fund where I get to keep all the income. Sounds great.


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## fatcat (Nov 11, 2009)

i get a yield of 4.44% after the mer ...


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## Argonaut (Dec 7, 2010)

Not according to Morningstar?

http://quote.morningstar.ca/quicktakes/fund/f_ca.aspx?t=F0CAN0721G&region=can&culture=en-CA

Maybe it's technically wrong, but even so.. mutual funds are much more complicated than a basket of hand picked common stocks.


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## fatcat (Nov 11, 2009)

i have no idea how they came up with that
if you go their pdf at: http://funds.rbcgam.com/pdf/fund-pages/monthly/rbf1018_e.pdf
they are distributing 9.1 cents per unit per month and their share price is $24.79
that comes to a distribution yield of 4.44 after mer (mutual funds are always reporting after mer)

argo, isn't a mutual fund just a basket of hand picked stocks ?? :chuncky:

i have heard that their manager is a very smart cookie


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## Argonaut (Dec 7, 2010)

Most of that quoted distribution is capital gains. How are they achieving these? Selling options? Doubtful. Selling their winners? Who knows. That's why I like a basket of (your own) hand-picked stocks, because you know exactly what you're getting.


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## Belguy (May 24, 2010)

Since I hold the RBC fund in my open account, it MUST be a pretty good one. Anyway, I have been happy with it. I switched to it from the RBC Canadian Dividend Fund some time ago. I prefer mutual funds in my taxable account as it makes the annual tax calculations less onerous as I am no whiz when it comes to keeping track of everything necessary for doing the tax calculations. I save the ETF's for my tax sheltered accounts.

Does this make any sense???


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## doctrine (Sep 30, 2011)

Thus fund looks pretty good, but what does Series D mean? Can you buy it with no further commission or advisor fees and just the straight 1.2%?

If so, its a decent fund. It has had much higher than 4% yields according to morningstar - 2011 distributions totalled $1.55 or so which is closer to 6-7% than 4-5%, plus it has had quite a lot of NAV appreciation.


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## fatcat (Nov 11, 2009)

doctrine said:


> Thus fund looks pretty good, but what does Series D mean? Can you buy it with no further commission or advisor fees and just the straight 1.2%?
> 
> If so, its a decent fund. It has had much higher than 4% yields according to morningstar - 2011 distributions totalled $1.55 or so which is closer to 6-7% than 4-5%, plus it has had quite a lot of NAV appreciation.


yes, you can buy it at 1.2% ... if you go to: http://www.theglobeandmail.com/glob...6141&companyName=RBC Canadian Equity Income-D ... you can see recent distros, if you get an average price of $24.00 for the year which works out to 6.4% and that is after the MER ... of course, we are all chasing past returns but i have heard somewhere that the woman who runs this fund is reputed to be a very smart gal ... what i want to find is a listing of all holdings which includes reit's i believe ... to the OP, you should be happy to pay that 1.2% :chuncky: ... you can't just go and find another fund that does the same thing ... you are paying for the management ... i would like to do more research, belguy, can you or anyone point me to the full holdings of this fund ?


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## AMABILE (Apr 3, 2009)

I'm with BMO Investorline.....I'm very interested in buying,
but there is a restriction "exclusive to RBC Direct Investing cusomers"
Does that mean I cannot buy it ?


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## Argonaut (Dec 7, 2010)

fatcat you should email RBC mutual funds or the fund manager and ask what the holdings are. You can also ask why the vast majority of the distribution is capital gains and how this is achieved.


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## fatcat (Nov 11, 2009)

argo, 
you are speaking about the distro for taxes correct ?
i don't know how to explain this other than that they are doing a lot of trading in the account
yes, i have a phn account and i will call them next week and ask for the holdings

amabile, you might or might not be able to, you probably would have to pay a fee, i am with tdw and some of phn funds are available through them but you have to pay a fee
you can open an account at phn for 25K and that gives you access to both phn funds and rbc funds


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## Belguy (May 24, 2010)

More information which I found by Googling:

http://www.bestdividend-paying-stocks.com/canadian-equity-income.html


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## fatcat (Nov 11, 2009)

i talked with phn who pointed me to some rbc documents that answer our questions

they are here: http://funds.rbcgam.com/RBC:URJs06w.../E_Main_Financials_PDFs/e_fs_cdnequityinc.pdf
and here: http://funds.rbcgam.com/RBC:[email protected]/pdf/E_Main_MRFP_PDFs/e_mr_cdnequityinc.pdf

looks like they are investing broadly in many sectors and trading very actively
performance last year was pumped by real estate investment trusts
but they are into energy and materials and banks and consumer staples

they own so much in the reit area that you could get your full reit allocation with this fund assuming they plan to stay in reit's and i don't think that's the case
this is really an income fund and doesn't fit into any model of sector allocation as far as i can see


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## wandernorth (Mar 30, 2012)

fatcat said:


> assuming they plan to stay in reit's and i don't think that's the case


 Why is that?REIT is no good anymore? I own XRE


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## fatcat (Nov 11, 2009)

wandernorth said:


> Why is that?REIT is no good anymore? I own XRE


not necessarily, i meant that this is an income fund, designed to produce monthly payouts (which it has done very well lately) and they will look for return anywhere they can find, which may or may not be reits


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## Mookie (Feb 29, 2012)

AMABILE said:


> I'm with BMO Investorline.....I'm very interested in buying,
> but there is a restriction "exclusive to RBC Direct Investing cusomers"
> Does that mean I cannot buy it ?


I'm also with Investorline. I just called them and confirmed that you cannot buy Series D (RBF1018) through Investorline. I own Series A of this fund (RBF591) through Investorline, with a MER of 2.08% :upset:. I guess I would have to move my stuff to RBC to get the lower MER. Even with the higher MER, this has been one of my best performing holdings over the last year.


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## piano mom (Jan 18, 2012)

I am glad I found this thread. My wealthy sister has almost $500,000 invested in RBF591. She was shocked when I told her that she's basically paying over $10,000 in fees a year. I was trying to talk her into switching to ETF's but she is afraid selling RBF591 now would cause her to pay a lot of taxes on capital gain (the fund has done very well over the last 10 years). Is it worthwhile for her to switch and pay the hefty taxes? She is 52 years old and makes over $80,000 per annum and already in a high tax bracket


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