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RBC Canaccord Independence Income Growth Deposit Notes ­ Series 1 Available for Purchase until December 29th, 2006

Safety of Principal with Opportunity for Growth

Introducing a principal protected note designed to provide investors with the potential for capital growth, managed by one of Canada's pre-eminent Portfolio Managers.

Key Features

Dynamic Allocation Strategy Formula driven strategy that provides the potential for enhanced returns when performance is positive and reduces volatility when performance is negative. Canaccord Independence will actively manage the Equity Account similarly to the Canaccord Independence Income Growth Portfolio. 100% initial exposure to the Portfolio with the potential for 200% exposure in strong market conditions, while reducing volatility in down markets by increasing exposure to bonds and decreasing exposure to equities. · · Principal Protection · · Reinvestment of Distributions · · Growth potential linked to the performance of the Portfolio No cap or other similar features that limit return 100% principal repayment at maturity by the Royal Bank of Canada 7.5 year term to maturity 100% of distributions reinvested in to the Equity Account The yield of the Fund 3.30% as of September 30, 2006 2.70% p.a. on the average daily value of the Equity Account for years 1-2 2.55% p.a. for years 3 to maturity 0.25% p.a. on the face amount of the bonds in the Bond Account

The Portfolio

RBC Canaccord Independence Income Growth Deposit Notes, Series 1 are comprised of an Equity Account and a Bond Account. The Equity Account is managed similarly to the Canaccord Independence Income Growth Portfolio.

Actively Managed Portfolio

Potential for Increased Exposure

The Canaccord Independence Income Growth Portfolio

The principal investment objective of the Canaccord Independence Income Growth Portfolio is to outperform the benchmark over a full market cycle, generate income, and preserve capital through the effective use of risk mitigating portfolio management strategies. The portfolio manager utilizes an active management approach to asset allocation, and sector and security selection to achieve the fund's performance and risk management objectives. The broad asset mix guidelines provide the manager with the flexibility to achieve strong absolute and relative performance in both rising and falling markets. The initial Portfolio will be comprised of approximately 22% income trusts, 33% Canadian common stocks, 30% structured products and 15% cash and short-term instruments.

Final Variable Return

Efficient Fee Structure

· · ·

Growth of $10,000 Since Inception**

As of September 30, 2006


Daily Secondary Market

Provided by RBC Dominion Securities Inc.


Returns Summary

Canaccord Independence Accounts Portfolio Benchmark (10% Scotia

1 Year

3 Years

5 Years

Since Inception (March 2000) 18.40%









Independence Income Growth Account Prior to April 30, 2006: 66% S&P/TSX 60, 33% SC Universe; thereafter 65% S&P/TSX 60, 25% S&P/TSX Capped Trust, 10% SC Universe Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06

Bond Index, 65% S&P TSX 60, S&P Capped Income Trust Index)





$0 Mar-00

- The Canaccord Independence Accounts are segregated portfolios, not mutual funds. The returns displayed above are gross of fees as of September 30, 2006, provided by Canaccord Capital Corporation and audited by Ernst & Young. Benchmark prior to April 2006 was 65% S&P TSX 60, 10% SC Universe Bond.

**Source: Canaccord Independence, Bloomberg

RBC Canaccord Independence Income Growth Deposit Notes ­ Series 1 Available for Purchase until December 29th, 2006

Summary of the RBC Canaccord Independence Income Growth Deposit Notes, Series 1

Issuer Subscription Price Minimum Initial Purchase Selling Period Issue Date Maturity Date FundSERV Code Royal Bank of Canada $100 per Note $5,000 (50 Notes) Open until December 29, 2006 On or about January 8, 2007 July 10, 2014 RBC601 · · · Principal Repayment 2.70% p.a. on the average daily value of the Equity Account for years 1-2 2.55% p.a. for years 3 to maturity 0.25% p.a. on the face amount of the bonds in the Bond Account

About the Manager

Canaccord Independence has built a dedicated team of portfolio managers and analysts, and currently manages more than $670 million in assets on behalf of high net worth private clients, trusts and foundations. Canaccord Independence is a part of Canaccord Capital Corporation (CCI), Canada's largest independent investment firm. CCI is the parent company of Canaccord Adams, the research and institutional investment arm of Canaccord.

Lead Managers: Nick Majendie and Alan Berge

The portfolio managers will diversify investments among a universe of Canadian equities based predominantly on the S&P TSX 60 Index, income trusts, structured products and cash, according to their view of current and anticipated market conditions. Asset mix and sector rotation decisions are made by the portfolio management team utilizing a structured "top-down" strategy process. Individual stock selections are made with a "bottomup" approach which utilizes the resources of Canaccord Adams specialty analysts and individual meetings with each of the companies in the universe by the portfolio management team.


The full Principal Amount of $100 per Note will be repaid on the Maturity Date, regardless of the performance of the portfolio. The Notes will not be listed on any exchange. RBC Dominion Securities Inc. will maintain a secondary market for the Notes, but reserves the right no to do so in the future, without providing prior notice to investors. A redemption through FundSERV would be a sale to RBC Dominion Securities Inc. in the secondary market. An investor who sells a Note within the first three years will pay an early trading charge, deductible from the proceeds of the Note. See the information Statement for more details.


May be Suited to Investors who:

· · · · · Prefer the safety of conventional bonds and GICs, but seek higher returns than those typically associated with such investments Are risk sensitive Have done well in resource, energy, and income trust sectors and would like to lock in some of those gains while still maintaining some exposure As a potential alternative to bond funds Wish to participate in the potential growth of the equity markets but do not want to risk losing their principal investment

The Information Statement in respect of the RBC Canaccord Independence Income Growth Deposit Notes, Series 1 and this highlight document do not constitute an offer or invitation by anyone in any jurisdiction in which such offer is not authorized or to any person to whom it is unlawful to make such offer or invitation. The offering and sale of the Notes described in the Information Statement may be subject to restrictions within any particular province or territory. The Notes may not be offered or sold in any jurisdiction outside of Canada. Persons into whose possession this document or the Information Statement comes must inform themselves of and observe any and all such restrictions. In particular, the Notes have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold within the United States or to, or for the account or benefit of, United States persons except in certain transactions exempt from the registration requirements of the United States Securities Act of 1933. No securities commission or similar authority has in any way passed upon the merits of the Notes and any representation to the contrary may be an offence. RBC Canaccord Independence Income Growth Deposit Notes, Series 1 (the "Notes"), are an investment providing principal protection at maturity. An investment in such Notes provides opportunities for investment but may pose risks. The fluctuation of the value of the Equity Account will directly impact the interest payable on the Notes. It is possible that no amount of interest will be payable on the Notes. Complete details of the dynamic allocation strategy and Final Variable Return, and risk factors are contained in the Information Statement dated, November 6, 2006. To obtain a copy of the Information Statement, please contact your advisor or visit the website at This document is a summary only and is qualified in its entirety by the Information Statement. Capitalized terms used and not defined herein have the meanings given in the Information Statement. The Notes are not insured deposits under the Canada Deposit Insurance Corporation Act (Canada). The Notes are issued by Royal Bank of Canada and are offered under an Information Statement dated November 6, 2006. Canaccord Independence does not make any representation or warranty regarding the Notes, the Information Statement or this document. Canaccord Independence is a trademark of Canaccord Capital Inc.


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