RBC Emerging Markets ex-China Equity Fund Class I (RECIX)

Overview

The investment fund is specifically designed to diversify investment portfolios by focusing on emerging markets, excluding China. By allocating at least 80% of its assets toward equity securities related to these emerging economies, the fund aims to leverage the growth potential inherent in these rapidly developing regions. It typically targets mid- to large-capitalization companies, offering investors exposure to a wide range of sectors that are expected to benefit from the economic expansion and demographic shifts occurring in these markets.

Products and Services

• Equity Securities of Emerging Market Countries:

  This fund invests primarily in equity securities, such as common stock, preferred stock, and convertible securities, that are economically tied to emerging market countries (excluding China). These investments are chosen for their potential to produce high returns by capitalizing on the economic growth and increased market demands of emerging economies.

• American Depositary Receipts (ADRs), European Depositary Receipts (EDRs), and Global Depositary Receipts (GDRs):

  The fund includes ADRs, EDRs, and GDRs in its investment portfolio. These financial instruments allow the fund to hold shares in foreign companies, providing investors with an easier way to gain exposure to overseas markets without dealing with the complexities of foreign stock exchanges.

• Warrants and Rights:

  Investing in warrants and rights offers the opportunity to purchase a company's stock at a predetermined price within a specific timeframe. This strategy can enhance the portfolio's potential for growth by capitalizing on certain market opportunities without the immediate need to invest in the stock directly.

• Initial Public Offerings (IPOs):

  The fund also seeks to invest in IPOs of companies based in emerging markets. Investing in IPOs can offer significant growth potential, allowing investors to participate in a company's early growth stages. However, it involves a higher risk compared to more established stocks, aligning with the fund’s aim for high growth in dynamic markets.