Business Context and Reporting Period
Reporting Manager: Royal Bank of Canada (RBC)
Filing Type: Form 13F-HR (Combination Report)
Reporting Period: Quarter ended September 30, 2006
Submission Date: November 10, 2006
Scope: This is a combination report, meaning a portion of RBC's holdings are reported here, while other portions are reported by affiliated managers (e.g., RBC Asset Management Inc., RBC Capital Markets Corporation, Royal Trust Corporation of Canada).
Key Financial Metrics
Total Portfolio Value: US $12,033,877,000 (approx. $12.03 billion)
Total Number of Holdings: 1,720 entries
Asset Class: Primarily equity securities (Common Stock, ADRs, Preferred Stock, and Exchange-Traded Funds).
Geographic Exposure: Significant holdings in North American (US/Canada) equities, with substantial international exposure via ADRs and ETFs (Europe, Asia, Emerging Markets).
Top Holdings by Share Count (Selected)
- Bank of Nova Scotia: 45,933,014 shares (Sole Authority)
- Bank of Montreal: 21,189,378 shares (Sole Authority)
- Manulife Financial Corp: 16,731,809 shares (Sole Authority)
- TransCanada Corp: 14,097,919 shares (Sole Authority)
- Enbridge Inc: 13,437,416 shares (Sole Authority)
- Microsoft Corp: 95,562 shares (Sole Authority) + 314,602 shares (Shared/Discretionary)
- Goldcorp Inc: 1,914,015 shares (Sole Authority)
- Research In Motion Ltd: 723,658 shares (Sole Authority)
Material Changes and Portfolio Composition
Comparison to Prior Period: The filing text provided does not contain data for the prior quarter (June 30, 2006); therefore, specific material changes in share counts or values cannot be calculated from this document alone.
Portfolio Structure:
- Canadian Financials & Energy: Heavy concentration in major Canadian banks (RBC, BMO, BNS, TD) and energy pipelines (TransCanada, Enbridge).
- US Large Cap: Significant positions in technology (Microsoft, Intel, Cisco, Oracle), healthcare (Pfizer, Johnson & Johnson, Merck), and industrials (General Electric, Caterpillar).
- ETFs: Substantial allocation to index funds, including iShares (S&P 500, MSCI EAFE, MSCI Japan) and SPDRs.
Guidance, Risks, and Unusual Items
Management Commentary: Form 13F filings are statutory disclosures of holdings and do not contain management commentary, earnings guidance, or forward-looking statements.
Voting Authority: The report details voting rights, distinguishing between "Sole," "Shared," and "Discretionary" authority. A significant portion of the portfolio is held with "Shared" or "Discretionary" authority, indicating assets managed on behalf of clients or through specific sub-advisory arrangements.
Unusual Items: The report includes holdings in warrants (e.g., American Mold Guard, Ascent Solar) and units of limited partnerships (e.g., Energy Partners), which carry different risk profiles than standard common equity.
Investor Verification Checklist
- Affiliate Reporting: Verify the total exposure by reviewing the separate 13F filings for the listed "Other Managers" (e.g., RBC Asset Management, Voyageur Asset Management) as this is a combination report.
- Valuation Timing: Confirm that the reported value ($12.03 billion) reflects market prices as of September 30, 2006, and adjust for subsequent market movements.
- Concentration Risk: Assess the concentration in the Canadian financial and energy sectors, which may correlate with specific regional economic risks.
- Client Assets vs. Proprietary: Distinguish between assets managed for clients (Discretionary/Shared) and proprietary trading accounts (Sole) to understand the bank's direct market exposure.