RBC KBSH Top 20 Yield Deposit Notes Series 3 and Series 4 – Return of Capital

An income alternative with exposure to an actively managed portfolio of dividend-paying equities and income trusts...


Available until August 24, 2007
  • Notes offer exposure to a diversified mix of 20 high-quality Canadian dividend-paying stocks and income trusts in an optimal yield portfolio
  • Portfolio managed by KBSH Capital Management, one of Canada’s most highly regarded investment managers
  • Principal protection guaranteed by Royal Bank of Canada
  • Initial 100% exposure to the target portfolio with potential for 200% exposure
  • All distributions earned by the portfolio will be paid monthly, with a target yield of 5.5%

Two income options:

RBC KBSH Top 20
Yield Deposit Notes
Series 3 – Yield
RBC KBSH Top 20
Yield Deposit Notes
Series 4 – ROC
Monthly Income: 100% of distributions earned by the portfolio will be paid to investors as interest income 100% of distributions earned by the portfolio will be paid to investors as repayments of principal
Issuer: Royal Bank of Canada
Minimum Purchase: $5,000
Management Fee: 2.45% per annum on the daily value of the target portfolio
RSP Eligibility: 100% eligible for RRSPs, RRIFs, RESPs, DPSPs and LIRAs
Secondary Market: RBC may maintain a secondary market for the Notes (subject to availability)

Initial portfolio: 20 equal weighted securities


Security Current Yield   Security Current Yield
Royal Bank of Canada 3.3%   Davis & Henderson Income Fund 8.4%
TD Bank 2.9%   Yellow Pages Income Fund 7.8%
Canadian Imperial Bank of Commerce 3.2%   Cineplex Galaxy Income Fund 7.1%
IGM Financial 3.2%   Arc Energy Trust 10.9%
Manulife Financial 2.3%   Bonavista Energy Trust 11.8%
Shoppers Drug Mart Corporation 1.3%   Penn West Energy Trust 11.2%
Nexen Inc. 0.3%   H&R REIT 5.8%
TransCanada Corporation 3.7%   Calloway REIT 5.9%
Enbridge inc. 3.4%   Riocan REIT 5.4%
Rogers Communications Inc. 1.1%   Bell Aliant Regional Income Fund 9.0%
Portfolio    5.5%



Available Info | Clients

Series 3 – Yield
Information Statement
Client Flyer

Series 4 – ROC
Information Statement
Client Flyer

 


For more information, please contact your financial advisor.
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Disclaimer


RBC KBSH TOP 20 YIELD Deposit Notes, Series 3 (the “Notes”), are an investment providing principal protection by maturity. An investment in such Notes provides opportunities for investment but may pose risks. The fluctuation of the value of the notional target portfolio will directly impact the interest payable on the Notes. It is possible that no amount of Final Variable Return will be payable on the Notes. Complete details of the dynamic allocation strategy and how the monthly repayments of principal and Final Variable Return are calculated, and repayment of principal and risk factors are contained in the Information Statement dated July 5, 2007. To obtain a copy of the Information Statement, please contact your advisor or visit the website at www.rbccm.com/notes. The Notes are not insured deposits under the Canada Deposit Insurance Corporation (Canada).

RBC KBSH TOP 20 YIELD Deposit Notes, Series 4 (Return of Capital Series) (the “Notes”), are an investment providing principal protection by maturity. An investment in such Notes provides opportunities for investment but may pose risks. The fluctuation of the value of the notional target portfolio will directly impact the interest payable on the Notes. It is possible that no amount of Final Variable Return will be payable on the Notes. Complete details of the dynamic allocation strategy and how the monthly repayments of principal and Final Variable Return are calculated, and repayment of principal and risk factors are contained in the Information Statement dated July 5, 2007. To obtain a copy of the Information Statement, please contact your advisor or visit the website at www.rbccm.com/notes. The Notes are not insured deposits under the Canada Deposit Insurance Corporation (Canada). Returns are in Canadian Dollars as of May 31st, 2007 and are average annual compound total returns since the product’s inception, net of all management expenses.

The Information Statement in respect of the RBC KBSH TOP 20 YIELD Deposit Notes, Series 3 and the RBC KBSH TOP 20 YIELD Deposit Notes, Series 4 (Return of Capital Series) and this summary do not constitute an offer or invitation by anyone in any jurisdiction in which such offer is not authorized or to any person to whom it is unlawful to make such offer or invitation. The offering and sale of the Notes described in the Information Statement may be subject to restrictions within any particular province or territory. The Notes may not be offered or sold in any jurisdiction outside of Canada. Persons into whose possession this Information Statement comes must inform themselves of and observe all such restrictions. In particular, the Notes have not been and will not be registered under the United States Act of 1933 and may not be offered or sold within the United States or to, or for the account or benefit of, United States persons except in certain transactions exempt from the registration requirements of the United States Securities Act of 1933. No securities commission or similar authority has in any way passed upon the merits of the Notes and any representation to the contrary may be an offence.