Business Context and Reporting Period
Reporting Manager: Royal Bank of Canada (RBC)
Filing Type: Form 13F-HR (Combination Report)
Reporting Period: Quarter Ended March 31, 2007
Submission Date: May 14, 2007
Scope: This is a combination report, meaning a portion of the holdings are reported here, while other portions are reported by affiliated managers including Voyageur Asset Management Inc., RBC Dain Rauscher Inc., RBC Asset Management Inc., and others.
Key Financial Metrics
Total Portfolio Value: US $16,042,580,000 (approx. $16.04 billion)
Total Number of Holdings: 2,326 entries
Asset Class: Primarily equity securities (Common Stock, ADRs, Preferred Stock) and derivatives (Call/Put options).
Geographic Exposure: Significant holdings in Canadian financials and energy sectors, alongside major US and international equities.
Material Changes and Portfolio Composition
Top Sector Concentrations:
- Financials: Massive positions in domestic Canadian banks (Royal Bank of Canada, Bank of Montreal, Bank of Nova Scotia, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce) and major US banks (Bank of America, Citigroup, JPMorgan Chase, Wells Fargo).
- Energy: Significant exposure to oil and gas companies including Suncor Energy, Enbridge, TransCanada, Petro-Canada, and Exxon Mobil.
- Technology: Large holdings in Microsoft, Intel, Cisco Systems, Oracle, and Yahoo! Inc.
- Healthcare: Notable positions in Johnson & Johnson, Pfizer, Merck, and Eli Lilly.
Notable Holdings (Selected)
| Issuer | Class | Shares Held (Approx.) | Voting Authority |
|---|---|---|---|
| Bank of Nova Scotia | Common | 53,018,770 (Sole) + 33,344 (Shared) | Sole/Shared |
| Bank of Montreal | Common | 24,803,102 (Sole) + 14,566 (Shared) | Sole/Shared |
| Microsoft Corp | Common | 94,547 (Sole) + 473,621 (Shared) | Sole/Shared |
| Exxon Mobil Corp | Common | 26,255 (Sole) + 117,144 (Shared) | Sole/Shared |
| Johnson & Johnson | Common | 13 (Sole) + 178,098 (Shared) | Sole/Shared |
| Research In Motion Ltd | Common | 847,861 (Sole) + 1,472 (Shared) | Sole/Shared |
Guidance, Outlook, and Risks
Management Commentary: As a Form 13F filing, this document contains no management commentary, forward-looking guidance, or earnings outlook. It is a statutory disclosure of holdings only.
Risks and Contingencies: The filing does not disclose specific risk factors. However, the concentration in financial and energy sectors exposes the portfolio to interest rate fluctuations and commodity price volatility. The presence of significant put option positions suggests a hedging strategy against downside risk in specific volatile equities.
Key Facts for Investor Verification
- Fragmented Reporting: Investors must aggregate data from this report and the 13F filings of the 14 other listed managers (e.g., RBC Asset Management, RBC Capital Markets) to view the total RBC institutional exposure.
- Canadian Bank Dominance: The portfolio holds massive stakes in the "Big Five" Canadian banks, reflecting the parent company's strategic alignment and domestic market focus.
- Option Activity: Verify the specific strike prices and expiration dates of the numerous call and put options listed (e.g., on Harrah's, Palm, and Kinder Morgan) to understand the specific hedging or speculative intent.
- Valuation Date: All share counts and values reflect the market status as of March 31, 2007, and do not reflect subsequent trading activity.