RBC International Small Cap Equity Fund A (RISSX)

Overview

The described fund is an investment entity that aims to generate returns by committing a significant portion of its assets, specifically at least 80%, to equity securities of small companies located globally, with the exception of the United States. The fund's strategy is to diversify its investment across different types of equity securities from small companies, thus targeting growth through exposure to international markets. By focusing on small companies outside the U.S., the fund seeks to tap into potential growth opportunities in various sectors worldwide, leveraging the unique market dynamics and economic environments present in different regions.

Products and Services

• Common Stock

  Shares of common stock represent ownership in a company and entitle the holder to vote at shareholders' meetings and to receive dividends. The fund invests in these as a way to gain equity interest in small companies around the world.

• Preferred Stock

  Preferred stock provides ownership in a company with a fixed dividend ahead of common stock and with priority over common stockholders in the event of liquidation. The fund may invest in preferred stock to achieve a more stable income flow from its equity investments.

• Convertible Securities

  These securities can be converted into a predetermined number of another type of security, typically shares of the common stock, at the option of the holder. Investment in convertible securities allows the fund to participate in the equity upside while potentially providing downside protection through interest or dividend income.

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

  ADRs, EDRs, and GDRs are certificates issued by banks that represent shares in foreign companies, allowing them to be traded on domestic stock exchanges. By investing in these depositary receipts, the fund gains exposure to foreign equity markets without dealing with the complexities of direct investments in foreign countries.

• Participation Notes

  Participation notes are financial instruments that provide the holder with a return linked to the performance of a particular security or market without the need to own the underlying asset directly. The fund may use these to invest in regions or sectors where direct investment is difficult due to regulatory barriers or other considerations.

• Warrants and Rights

  Warrants and rights are securities that give the holder the right, but not the obligation, to buy shares of the company at a predetermined price before the expiration date. These instruments can enhance the fund's flexibility and potential gain by allowing it to commit to purchasing equity at favorable prices.