Use the fund fact sheets provided by the respective asset management companies (attached) for the following mutual funds to answer questions 1-6:

 

TD Monthly Income Fund (TDB622) (I) Investor's Series - TD Asset Management Inc.

RBC Monthly Income Fund - (RBF448) Series A - RBC Global Asset Management Inc.

 

https://www.td.com/ca/en/asset-management/documents/fund-document/pdf/Fund-Facts/TD-Mutual-Funds/TDB622E.pdf 

 

http://funds.rbcgam.com/pdf/fund-facts/funds/rbf448_e.pdf

 

Q1. What is the best indicator of size of a mutual fund and what is the size of each? (2 points)

 

 

Q2. When were these funds first offered? (1 point)

 

 

 

Q3. What is the risk rating for each? Describe one reason for the difference in risk rating between these two funds. (3 points)

 

 

Q4. What is the average return (10-year annual compound return) for each fund? (2 points)

 

 

Q5. Using the average return data (last 10 years), calculate the standard deviation for each.  Based on these calculations, which fund has shown higher volatility over the last 10 years? (3 points)

 

Q6. What are the total fund expenses (ratio/%) of each?  Are the return details presented "net" of these expenses (Yes or No)?  (3 points)

 

Use the links provided to answer question 7:

Q7. Use the links below to locate the Distributions information for each of these funds.  What were the Total distributions for each for the year 2021?  Which types of distributions does each fund pay out? (3 points)

 

https://www.rbcgam.com/en/ca/products/mutual-funds/RBF448/detail

 

https://www.td.com/ca/en/asset-management/documents/fund-document/pdf/Distributions/TD-Mutual-Funds/Distribution%20Summary-All%20Funds_E.pdf

 

Use any data source you prefer to answer questions 8-11:

Q8. Why are the types of distributions important to investors? (2 points)

 

Q9. Why would you include either of these funds in an investment portfolio? (3 points)

 

Q10. Find the most recent price for 1 unit of each fund?  Provide the price and as of date. (2 points)

 

Q11. If forced to choose either/or for a portfolio, which fund would you choose? Justify your choice with at least three reasons. (6 marks)