RBC International Equity Fund Class A (RIEAX)

Overview

The fund is an investment vehicle that aims to achieve its investment objective by allocating at least 80% of its assets in equity securities of companies based around the world, with the exception of the United States. By focusing on international markets, the fund provides investors an opportunity to diversify their portfolios beyond the U.S. equity market, potentially reducing risk through geographical diversification and tapping into the growth potential of foreign markets. The fund's strategy involves investing in a mix of equity securities, including but not limited to, common stock, preferred stock, and convertible securities, as well as various forms of depositary receipts and other equity-like instruments. This diversified approach allows the fund to adapt to changing market conditions and to take advantage of opportunities in different segments of the international market.

Products and Services

• Common Stock - Shares representing ownership in a company, giving holders a claim on the company's earnings and assets. The fund invests in common stock to participate directly in the potential growth of international companies.
• Preferred Stock - A type of stock providing dividends, prior claim on assets in the event of liquidation, and potentially other benefits over common stock, but usually without voting rights. Preferred stock is included in the fund's investments for its income-generating potential and relative stability.
• Convertible Securities - Bonds or preferred shares that can be converted into a predetermined number of common shares, often at the option of the holder. The fund uses convertible securities to potentially benefit from the price appreciation of the underlying common stock while mitigating downside risk.
• American Depositary Receipts (ADRs) - A way to invest in foreign companies' shares through U.S. stock exchanges. These instruments allow the fund to easily access and invest in international equity markets.
• European Depositary Receipts (EDRs) and Global Depositary Receipts (GDRs) - Similar to ADRs, these instruments represent ownership in a foreign company's shares and can be traded on European or global stock exchanges respectively. They enable the fund to diversify its investments across various international markets.
• Participation Notes - Financial instruments that offer returns based on the performance of a specified underlying equity without directly investing in that equity. Participation notes are used by the fund to gain exposure to restricted markets or hard-to-access stocks.
• Warrants and Rights - Options to purchase securities at a specific price or quantity. Warrants and rights can offer the fund leverage and a cost-effective means to invest in equities.
• Initial Public Offerings (IPOs) - The first sale of stock by a private company to the public. Investing in IPOs allows the fund to participate in the early growth stages of companies, potentially leading to high returns.