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Does anyone here have a financial or retirement advisor at RBC who put them into any one of the "RBC Select" mutual funds?
 

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A close relative of mine might be (it is some kind of RBC packaged product) but I am not sure. These things are atrociously expensive (MER) offerings (portfolios) packaged as one-fund-solutions. Imagine 1.94% MER on a balanced portfolio that is 45% bonds..... The MER alone would eat the majority of the bond return.

Lastly, I see they also have a TR5 option whereby in withdrawal stage, they pay out 5% of the fund annually (with the caveat market conditions may dictate lower payouts). At least this payout is flexible if market conditions dictate. RBC's Managed Payout Solutions http://funds.rbcgam.com/investment-solutions/portfolio-solutions/rbc-managed-payout-solutions.html is a product that can result in Return of Investor's Capital if fund performance returns cannot match payout requirements.

Trying not to be overly critical but I think all the big banks peddle this stuff to their brick and mortar customers in particular and that contributes to juicy big bank profits. There are many other less expensive options to consider but they take some initiative on the investor's part to 'care about their money'.
 

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RBC Select Balanced Portfolio (MER=1.94%) is very similar to Vanguard Balanced ETF Portfolio (MER=0.22%).

RBC Select Growth Portfolio (MER=2.04%) is very similar to Vanguard Growth ETF Portfolio (MER=0.22%).

The difference in MER is 1.7%-1.8%, or about $1700-$1800 per year for each $100,000 invested.

What kind of value does your advisor add to make these fees worthwhile?
 

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Does anyone here have a financial or retirement advisor at RBC who put them into any one of the "RBC Select" mutual funds?
Could you provide some context around the question you have asked? Should have asked that first before jumping to judgement.
 

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My mom's advisor got her into RBC Select Balanced Portfolio some time ago (but she's no longer with RBC). It's not that bad of a fund. Despite the high MER, its 10 and 15 year performance is on par with the Morningstar category average. Its 10 year performance is only 0.55% annualized lower than Tangerine Balanced Portfolio, which is a pretty good fund that's frequently recommended around here.

So while I agree that the MER is too high, RBC Select Balanced Portfolio isn't terrible. It may be one of the best funds at RBC. An investor can certainly do better though.
 

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So while I agree that the MER is too high, RBC Select Balanced Portfolio isn't terrible. It may be one of the best funds at RBC. An investor can certainly do better though.
Recognizing of course these managed products are funds of funds, e.g. the 'one fund solution'. Success depends on overall MER and the re-balancing algorithm. The prospectus of these are important to read and understand.
 

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I used to think they were not bad- at least the Select Conservative and Select Balanced. Not the Select Growth, because RBC's foreign equity funds are not particularly good performers. The MER for Select Balanced fund was (maybe still is) lower than their RBC Balanced Fund, for similar performance. But they changed their prospectus over 10 years ago to allow them to vary their target allocations +/- 10% rather then the +/-2.5% they started out with. So now you have delegated more discretion to RBC to vary the allocations from their nominal targets.

They have the same problem as most portfolio funds - they allow RBC to hide some of its worst performers inside them.

Personally I wouldn't buy one today because I am capable of making up my own portfolio of RBC funds. Having said all that, the Select Balanced is not a bad choice for a neophyte investor.

I would definitely stay away from the "Select Choice" portfolios. Those portfolios include some 3rd party mutual funds, rather than being limited to RBC's family of funds. But they all have high MER's.
 
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