SEC Filing Summary: Royal Bank of Canada (13F-HR)
Business Context and Reporting Period
Reporting Manager: Royal Bank of Canada (RBC)
Filing Type: Form 13F-HR (Combination Report)
Reporting Period: Quarter ended December 31, 2006
Submission Date: February 13, 2007
Scope: This is a combination report, meaning a portion of RBC's holdings are reported herein, while other holdings are reported by affiliated managers (e.g., RBC Asset Management, RBC Capital Markets, Royal Trust Corporation).
Key Financial Metrics
Total Reported Value: US $13,999,954,000 (approx. $14.0 billion)
Total Number of Holdings: 1,714 entries
Asset Class: Primarily equity securities (Common Stock, ADRs, Preferred Stock, and Exchange-Traded Funds).
Material Changes and Portfolio Composition
Top Holdings by Share Count (Sole Authority):
- Bank of Nova Scotia: 50,787,544 shares
- Bank of Montreal: 22,780,568 shares
- Enbridge Inc: 14,715,045 shares
- TransCanada Corp: 17,410,036 shares
- Manulife Financial Corp: 20,841,674 shares
- Toronto-Dominion Bank: 32,375,006 shares
- Shaw Communications: 4,716,362 shares
- Research In Motion: 838,849 shares
Significant U.S. Equity Positions:
- Microsoft Corp: 97,442 shares (Sole) / 424,510 shares (Shared)
- General Electric: 136,954 shares (Sole) / 90,738 shares (Shared)
- Johnson & Johnson: 465 shares (Sole) / 149,042 shares (Shared)
- Exxon Mobil: 27,629 shares (Sole) / 72,789 shares (Shared)
- Wells Fargo: 50,063 shares (Sole) / 21,172 shares (Shared)
ETF Exposure: Significant holdings in iShares and SPDR trusts, including S&P 500, MSCI EAFE, and MSCI Japan indices.
Guidance, Outlook, and Risks
Management Commentary: Not applicable. Form 13F is a statutory disclosure of holdings and does not contain management discussion, financial guidance, or forward-looking statements.
Risks and Contingencies: The filing does not disclose specific risk factors or contingencies. However, the portfolio shows significant exposure to the financial sector (major Canadian and U.S. banks) and energy sector (oil sands, pipelines, and major oil producers), which are subject to commodity price volatility and regulatory changes.
Unusual Items: The report includes holdings in warrants and units with specific expiration dates (e.g., "W EXP 07/10/201"), indicating active derivatives or special purpose vehicle management.
Investor Verification Checklist
- Affiliate Aggregation: Verify total exposure by aggregating this report with filings from the 14 other listed managers (e.g., RBC Asset Management, RBC Capital Markets) to get the full picture of RBC's institutional holdings.
- Voting Authority: Distinguish between "Sole," "Shared," and "Discretionary" voting authority to understand the bank's direct influence versus managed client assets.
- Concentration Risk: Assess the concentration in Canadian financial institutions and energy infrastructure relative to the total portfolio value.
- Derivatives: Review specific entries marked with "W" (Warrants) or "PUT/CALL" to understand the bank's hedging or speculative positions.