Insight into the Latest Strategic Moves by RBC Canadian Equity Income Fund (Trades, Portfolio)
RBC Canadian Equity Income Fund (Trades, Portfolio), known for its diversified investment in Canadian dividend-paying securities, has recently made significant changes to its portfolio in the second quarter of 2024. The fund focuses on generating high monthly cash flows and modest capital growth, with a cap of 35% on foreign securities investments.
New Additions to the Portfolio
The fund strategically added six new stocks to its portfolio. Noteworthy among them is Kinross Gold Corp (TSX:K, Financial), with a purchase of 1,400,000 shares valued at C$15.95 million, making up 0.55% of the portfolio. Following closely is Empire Co Ltd (TSX:EMP.A, Financial), with 440,000 shares worth C$15.39 million, and Element Fleet Management Corp (TSX:EFN, Financial), where 560,000 shares were acquired for C$13.94 million.
Significant Increases in Existing Positions
Amidst the portfolio adjustments, the fund increased its stakes in 30 stocks. The most significant increase was in Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN, Financial), where 430,000 additional shares were acquired, boosting the total to 608,023 shares. This adjustment expanded the portfolio impact by 0.65% with a new total value of C$27.03 million. Another notable increase was in Crombie Real Estate Investment Trust (TSX:CRR.UN, Financial), with 970,000 additional shares, bringing the total to 1,561,987 shares valued at C$19.92 million.
Complete Exits from Certain Holdings
The fund decided to exit completely from four holdings this quarter. The most impactful was the sale of all 1,767,800 shares of Tricon Residential Inc (TSX:TCN, Financial), which had a -0.72% impact on the portfolio. Another significant exit was from PulteGroup Inc (PHM, Financial), where all 149,000 shares were sold, impacting the portfolio by -0.69%.
Reductions in Key Positions
Reductions were made in 25 stocks, with significant cuts in Magna International Inc (TSX:MG, Financial) and Barrick Gold Corp (TSX:ABX, Financial). Magna saw a reduction of 250,000 shares, a -63.36% decrease, impacting the portfolio by -0.67%. Barrick Gold was reduced by 797,100 shares, a -63.16% decrease, with a -0.65% portfolio impact. These stocks traded at average prices of C$69.02 and C$22.19 respectively during the quarter.
Portfolio Overview and Sector Allocation
As of the second quarter of 2024, the fund's portfolio comprises 90 stocks. The top holdings include 7.97% in Royal Bank of Canada (TSX:RY, Financial), 6.03% in The Toronto-Dominion Bank (TSX:TD, Financial), and 4.42% in Enbridge Inc (TSX:ENB, Financial). The investments are predominantly spread across 10 industries, with significant allocations in Financial Services, Energy, and Real Estate.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
