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1 RBC Guaranteed Investment Funds PRESENTED BY: Santo P. Filice, CHS Date: January 22 th, 2014 Investing with Confidence.

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Presentation on theme: "1 RBC Guaranteed Investment Funds PRESENTED BY: Santo P. Filice, CHS Date: January 22 th, 2014 Investing with Confidence."— Presentation transcript:

1 1 RBC Guaranteed Investment Funds PRESENTED BY: Santo P. Filice, CHS Date: January 22 th, 2014 Investing with Confidence

2 2 What’s Under Your Client’s Mattress?

3 3 Alternative to the Mattress  1Yr. Redeemable GIC 1.05%  1 Yr. Non – Redeemable GIC 1.3%  5 Yr. Redeemable GIC 1.95%  5 Yr. Non-Redeemable GIC 2.2%  *CPI September 2013 – 1.1%  RBC rates on November 17 th, 2013

4 4 That Mattress can be Expensive

5 5 5 Agenda  Why Segregated Funds - Value Proposition  The Market Opportunity for You  Whose Mattress do we need to look under?  Why RBC GIF – Strength, Value, Advice  New Product Offerings  Next Steps

6 6 The Uncertain Road – TSX MARKET DOWNTURN

7 7 Emotional Irrational investing

8 8 A Little Refresher – Why Segregated Funds? Investment with Principal Guarantees/Resets Estate Planning/ Potential for Creditor protection Underlying Investments Maturity and Death Benefit Guarantees Gains when market goes up, protected when market goes down Ability to bypass probate Passes directly to named beneficiaries It is an insurance contract therefore beneficiaries take precedence over creditors Diversify by asset class

9 9 9 A Seatbelt for the Uncertain Road RBC Guaranteed Investment Funds New Maturity Guarantee = $81,750 (75% of $109,000) Initial Maturity Guarantee = $75,000 (75% of $100,000) Note: Assumes no withdrawals. Assumes that the deposit was made on or before age 80.

10 10 Death Benefit Guarantee RBC Guaranteed Investment Funds Note: Assumes no withdrawals. Assumes that the deposit was made on or before age 80. Death Death Guarantee $118,000 Mutual Fund Value $80,000

11 11 More opportunities Ongoing renewal commission Build a fence Enhancing Your Value Proposition

12 12 Thoughts Clients May Have I’m Self Employed I’ve lost money in the markets I want to participate in market growth but I’m worried I will lose on my investment I want my loved ones to have enough when I’m gone I don’t know if I’ll have enough money for retirement I’m not eligible for Life Insurance All my investments are in GICs

13 13  Age 45+, Pre-retirees and retirees  Saving for retirement  Looking for efficient transfer of wealth Target Clients

14 14 The $738 Billion Inheritance Windfall Source; Investor Economics – Canadian Retirement Market / 2011 Household Balance Sheet

15 15 Case Study #1 – Preserving an Estate Profile Assessment  Preserving wealth to maximize transfer to beneficiaries Recommendation  Transfer her Non Reg. savings to RBC GIF Series 2.  Martha, 68, retired widow  $400K Non Reg. in a conservative Mutual Fund portfolio  Does not like the volatility of the markets  Would like to leave the money for her family * All case studies are for illustrative purposes only and are not true accounts. This document is being provided for general information purposes only and the contents should not be relied upon as containing specific financial, investment, tax or related advice. Client must seek their own independent advice." Benefits  100% death benefit, which can be reset annually  Avoidance of the length of probate – from a few months to weeks.  Avoidance of the costs of probate (probate fees, executor fees, legal fees) – Up to 20% of her assets.  Financial affairs remain private. Assuming a $100,000 segregated fund portfolio for the province of Ontario. Probate fees vary by province. Source for Ontario probate is the Estate Administration Tax Act, 1998 S.O. 1998, Chapter 34. The costs displayed represent a typical range for fees that may be incurred by clients utilizing third-party assistance in managing their estate. This example assumes the only assets the client has are in segregated funds.

16 16 Protection for the Uninsurable  100% Death Benefit Maturity - ensures no surprises

17 17  Previously Married  Self Employed  Income Splitting Protection for your Family

18 18 Case Study #2 – Potential for Creditor Protection Profile Assessment  Joe, 46, self-employed contractor, married with 2 children  His business is non- incorporated  Nest egg of $200,000 in non-registered assets  Ensure his family is protected should anything happen to his business or himself  Protecting family and assets Recommendation  RBC GIF Series 1 GIF * All case studies are for illustrative purposes only and are not true accounts. This document is being provided for general information purposes only and the contents should not be relied upon as containing specific financial, investment, tax or related advice. Client must seek their own independent advice." Benefits  Potential for creditor protection should his business fail  100% death benefit protects investment against market volatility

19 19 Segregated Fund Assets (in Billions)

20 20 $295 Billion AUM TrustSimplicityStrength WHY RBC? Simple product structure RBC, a trusted brand, a Canadian institution

21 21 RBC Global Asset Management  Manager of the underlying mutual funds  Over 1.2 million clients  Proven track record  Approximately $295 billion in assets under management  60 investment professionals

22 22 Comparing MERs Pre-HSTRBC GIF 75/100 Industry Average RBC Canadian Money Market GIF 0.421.31 RBC Canadian Short-Term Income GIF 1.82- RBC Bond GIF 1.822.33 RBC PH&N Total Return Bond GIF 1.852.33 RBC Global Bond GIF 2.212.68 RBC Balanced GIF 2.662.92 RBC PH&N Monthly Income GIF 2.622.96 RBC Balanced Growth GIF 2.672.98 RBC Canadian Dividend GIF 2.642.88 RBC Canadian Equity GIF 2.892.98 RBC O'Shaugh. All-Cdn Equity GIF 2.963.05 RBC US Dividend GIF 2.962.80 RBC North American Growth GIF 2.902.86 RBC U.S. Equity GIF 3.073.12 RBC O’Shaughnessy U.S. Value GIF 3.033.12 RBC U.S. Mid-Cap Equity GIF 2.962.71 RBC Global Dividend Growth GIF 3.222.98 RBC O’Shaugh. Inter.l Equity GIF 3.223.21 RBC Select Conservative GIP 2.412.80 RBC Select Balanced GIP 2.593.07 RBC Select Growth GIP 2.823.15 RBC Select Aggressive Growth GIP 3.073.13 Source of competitor MERs: Paltrak December 31, 2012 and product material. MERs for the RBC GIF are as published in the December 31, 2011 audited financial statements. These MERs are subject to change at anytime and may increase. Actual MERs including HST will be published in the annual audited financial statements. Series 2RBC GIF Industry Average RBC Select Conservative GIP 2.602.80 RBC Select Balanced GIP 2.793.07 RBC Select Growth GIP 3.053.15 RBC Select Aggr. Growth GIP 3.393.13

23 23 RBC Insurance RBC High Yield Bond Fund RBC North American Value Fund RBC PH&N Canadian Income Fund Introducing 3 new funds for your clients!

24 24 RBC GIF – Competitive Advantage

25 25 RBC Payout Annuities – Product Design at a Glance Life Single LifeJoint Life Term Certain 3-25 years Guaranteed period (0-25 years) Immediate Prescribed Guaranteed term (3-25 years) Immediate Prescribed Payments for a Fixed period Payments for life

26 26 So, Now It’s YOUR Turn... And remember... Choice, Not Chance Should Determine Ones Destiny Advice Driven Sales Ideas Let’s meet 1 on 1

27 27 QUESTIONS!


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