RBC International Small Cap Equity Fund Class R6 (RISRX)

Overview

This fund targets investors looking for exposure to small companies around the globe, with the exception of those based in the United States. By allocating at least 80% of its assets into equities of these small international firms, the fund aims to achieve its investment objectives. Such a focus not only diversifies an investment portfolio geographically but also taps into the potential high growth of small companies in various economies. The exclusion of U.S. companies signifies a strategic choice to diversify and capture growth opportunities in emerging and established markets outside the United States.

Products and Services

The fund offers a variety of investment vehicles within the equity domain of small global companies, aiming to meet the diverse needs and preferences of investors:

• Common Stock: Shares of ownership in a company, representing a claim on the company's earnings and assets. Common stockholders typically have voting rights and may receive dividends.
• Preferred Stock: A type of stock that typically pays fixed dividends prior to any dividends being paid to common stockholders. Preferred stockholders usually do not have voting rights.
• Convertible Securities: Bonds or preferred shares that can be converted into a predetermined number of common stock or equity shares. This provides investors with the potential upside of equity-like returns while offering more protection than common stock.
• American Depositary Receipts (ADRs): A type of equity security that represents a specified number of shares in a foreign corporation; ADRs are traded on U.S. exchanges, making it easier for U.S. investors to invest in foreign companies.
• European Depositary Receipts (EDRs) and Global Depositary Receipts (GDRs): Similar to ADRs, these instruments represent ownership in a company's shares and are traded on European or global exchanges, respectively, facilitating investment in foreign entities.
• Participation Notes: Derivative instruments that provide investors with exposure to the underlying asset's return, such as equities of foreign companies, without requiring direct investment in the asset itself.
• Warrants and Rights: Securities that provide the holder the right, but not the obligation, to buy or sell a certain number of equity shares at a specified price before a certain date. These instruments can enhance the return on investment through leverage.