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Hudbay Minerals Inc T.HBM

Alternate Symbol(s):  HBM

Hudbay Minerals Inc. is a copper-focused mining company. The Company has operations and pipeline of copper growth projects in tier-one mining-friendly jurisdictions of Canada, Peru, and the United States. The Company’s operating portfolio includes the Constancia mine in Cusco (Peru), the Snow Lake operations in Manitoba (Canada) and the Copper Mountain mine in British Columbia (Canada). Its growth pipeline includes the Copper World project in Arizona, the Mason project in Nevada (United States), the Llaguen project in La Libertad (Peru) and several expansion and exploration opportunities near its existing operations. The Company owns 75% of the Copper Mountain Mine, which is located south of Princeton, British Columbia. Copper Mountain Mine is a conventional open pit, truck, and shovel operation. The mine has approximately 45,000 tons per day plant that utilizes a conventional crushing, grinding and flotation circuit to produce copper concentrates with gold and silver credits.


TSX:HBM - Post by User

Bullboard Posts
Post by jimitwiston Dec 01, 2006 12:35pm
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Post# 11787565

Added to RBCCM FEW portfolio

Added to RBCCM FEW portfolioI found this in the S$P research this morning jimi RBC Dominion Securities Inc. Richard E. Talbot, CA, CFA Director of Canadian Equity Research (416) 842-7846 richard.talbot@rbccm.com All values in Canadian dollars unless otherwise noted. Priced as of market close on November 30, 2006, EST (unless otherwise stated). December 1, 2006 | INDUSTRY COMMENT RBC CM FEW Portfolio New Year 2007 Fundamental Equity Weighting Portfolio (FEW) Event With the release of the RBC CM Strategy Focus list, we are pleased to present our New Year 2007 FEW portfolio and review the performance of the Fall 2006 FEW portfolio. Investment Conclusion The New Year 2007 FEW portfolio contains 74 stocks with 8 additions and 6 deletions. More details will be provided in our New Year 2007 Strategy publication. Highlights include: Changes to the New Year 2007 FEW: Additions Deletions Addax Petroleum First National Financial IF Bell Aliant Regional Comms Opti Canada Centerra Gold HudBay Minerals Inco Ltd. Penn West Energy Trust Cinram Int’l IF LionOre Mining Keyera Facilities IF Peyto Energy Trust Finning Int’l Morguard REIT 1. We maintained our underweight position in Energy (24.0% vs. the benchmark at 28.4%). Within the sector, we reduced our weight in the Oil, Gas & Consumable Fuels sector from 26.0% to 23.0%. We added Cameco to the Focus List. We added Addax Petroleum to the FEW and removed Keyera, Opti Canada, PennWest and Peyto. We maintained our weight in the Energy Equipment & Services sector at 1.0% (vs. the benchmark at 1.4%). 2. We increased our weight in Materials from underweight to marketweight (16.5% vs. the benchmark at 16.0%). Within the sub-sectors, we increased our weight in: Chemicals from 1.0% to 2.0% (marketweight); Metals & Mining (ex. Gold) from 5.5% to 6.0% (marketweight); and Gold from 7.0% to 8.0% (overweight). Steel remained at 0.5%. We added HudBay Minerals, LionOre Mining and Centerra Gold to the FEW and removed Inco. 3. We maintained our overweight in Industrials (6.5% vs. the benchmark at 5.5%). Within the group, we maintained the weightings in Capital Goods at 2.0% and Transportation at 4.5%. We continue to have no exposure in the Paper & Forest sector. We added Finning to the FEW. 4. We maintained our marketweight in Consumer Discretionary (5.5% vs. the benchmark of 5.2%). We increased Consumer Services from 0.5% to 1.0% (vs. the benchmark at 0.8%). We maintained positions of 4.0% in Media and 0.5% in Retail. We continue to have no exposure to either the Autos or Consumer Durables sectors. 5. We maintained our marketweight position in Consumer Staples (2.5% vs. the benchmark of 2.6%). 6. We maintained our underweight in Health Care at 0.5% (vs. the benchmark at 0.8%). 7. We maintained our overweight in Financials (33.5% vs. the benchmark at 31.3%) with an overweight in the Banks (20.5% vs. the benchmark of 18.0%) and Insurance (9.5% vs. the benchmark of 9.1%). We increased our weight in Diversified Financials and Real Estate from 1.0% and 1.5% to 1.5% and 2.0%, respectively (vs. the benchmarks of 1.1% and 3.1%). We added First National Financial and Morguard REIT to the FEW. 8. We maintained our marketweight in Information Technology (3.5% vs. the benchmark of 3.7%). We added Cinram to the FEW. 9. We reduced our overweight in Telecom Services from 7.5% to 6.0% (vs. the benchmark of 4.9%). We removed Manitoba Telecom from the Focus list. We removed Bell Aliant Regional Communications from the FEW. 10. We maintained our Utilities weighting at marketweight (1.5% vs. the benchmark at 1.5%). Investment Conclusion continues on page 4. RBC Capital Markets RBC CM FEW Portfolio – New Year 2007 Exhibit 1: RBC Capital Markets New Year 2007 Fundamental Equity Weighting (FEW) Portfolio Weights % Closing RBC CM S&P/TSX Price Symbol 30-Nov-06 1-Sep-06 30-Nov-06 30-Nov-06 Energy ENC 24.0 27.0 28.4 3,189.50 Energy Equipment & Services ENEQP 1.0 1.0 1.4 1,842.12 Savanna Energy Services Corp. SVY 0.5 0.5 0.1 18.80 ShawCor Ltd. SCL.A 0.5 0.5 0.1 24.95 Oil, Gas & Consumable Fuels OIL 23.0 26.0 27.0 3,317.65 Addax Petroleum Corp. AXC 0.5 -n.m 31.02 Cameco Corp. CCO 2.0 2.0 1.1 43.26 Canadian Natural Resources Ltd. CNQ 3.0 3.0 2.4 61.90 Enbridge Inc. ENB 0.5 0.5 1.0 40.20 EnCana Corp. ECA 3.5 4.0 3.5 59.36 Husky Energy Inc. HSE 1.5 2.0 0.7 78.37 Imperial Oil Ltd. IMO 0.5 0.5 0.9 42.89 Petro-Canada PCA 3.0 3.0 1.9 51.49 Shell Canada Ltd. SHC 1.0 1.0 0.6 43.35 Suncor Energy Inc. SU 3.0 2.5 3.0 90.00 Talisman Energy Inc. TLM 2.0 2.5 1.5 19.17 TransCanada Corp. TRP 2.0 2.0 1.4 38.64 Vermillion Energy Trust Units VET.UN 0.5 0.5 0.2 33.31 Materials BMS 16.5 14.0 16.0 2,398.87 Chemicals CHM 2.0 1.0 2.0 2,262.75 Nova Chemicals Corp. NCX 1.0 0.5 0.2 33.16 Potash Corp. POT 1.0 0.5 1.2 160.95 Other* (Construction Materials, Containers & Packaging) 0.0 0.0 0.1 2,185.29 Metals & Mining ex Gold and Steel* 6.0 5.5 5.9 4,761.04 Alcan Inc. AL 1.5 1.5 1.5 54.77 First Quantum Minerals FM 1.0 1.0 0.3 59.82 HudBay Minerals Inc. HBM 0.5 -0.2 21.30 Inmet Mining Corp. IMN 1.0 1.0 0.2 64.04 LionOre Mining Int'l. Ltd. LIM 0.5 -0.2 11.78 Teck Cominco Ltd. TCK.B 1.5 1.5 1.3 86.05 Gold GLD 8.0 7.0 6.7 2,549.66 Barrick Gold Corp. ABX 1.0 1.5 2.3 35.76 Centerra Gold Inc. CG 1.0 -0.1 15.35 Eldorado Corp. ELD 1.0 1.0 0.2 6.50 GoldCorp. Inc. G 3.0 2.0 1.8 35.71 IAMGold Corp. IMG 1.0 0.5 0.2 10.98 Kinross Gold Corp. K 1.0 2.0 0.4 14.34 Steel STL 0.5 0.5 0.6 3,920.71 IPSCO Inc. IPS 0.5 0.5 0.4 116.50 Paper & Forest Products PPRFP 0.0 0.0 0.7 672.46 Industrials CAP 6.5 6.5 5.5 1,174.39 Capital Goods CG 2.0 2.0 1.7 503.11 Finning Int'l. Inc. FTT 0.5 -0.3 44.65 SNC Lavalin Group Inc. SNC 1.5 2.0 0.4 32.32 Commercial Services & Supplies CMRCL 0.0 0.0 0.4 1,533.55 Transportation TRNS 4.5 4.5 3.4 2,838.41 ACE Aviation Holdings Inc. ACE.B 0.5 0.5 0.3 35.04 Canadian National Railway CNR 2.5 2.5 2.1 53.62 Canadian Pacific Railway CP 1.5 1.5 0.7 63.51 Consumer Discretionary CONC 5.5 5.0 5.2 1,258.45 Automobiles & Components AUTO 0.0 0.0 0.8 1,440.10 Consumer Durables & Apparel DUR 0.0 0.0 0.4 2,495.57 Consumer Services HOTEL 1.0 0.5 0.8 1,096.50 Tim Hortons Inc. THI 1.0 0.5 0.5 35.33 Media MEDIA 4.0 4.0 2.5 1,021.41 Broadcasting & Cable TV TV 2.0 2.0 1.0 1,404.90 Alliance Atlantis Communications Inc. AAC.B 0.5 0.5 0.1 40.48 Astral Media Inc. ACM.A 1.0 1.0 0.1 39.04 Corus Entertainment Inc. CJR.B 0.5 0.5 0.1 41.00 Continued on next page. December 1, 2006 2 RBC Capital Markets RBC CM FEW Portfolio – New Year 2007 Exhibit 1: RBC Capital Markets New Year 2007 Fundamental Equity Weighting (FEW) Portfolio…continued Weights % Closing RBC CM S&P/TSX Price Symbol 30-Nov-06 1-Sep-06 30-Nov-06 30-Nov-06 Other (Publishing, Advertising, Movies & Entertainment)* 2.0 2.0 1.5 10,572.98 Aeroplan Income Fund AER.UN 0.5 0.5 0.1 17.00 Cineplex Galaxy Income Fund CGX.UN 0.5 0.5 n.m. 12.40 Thomson Corporation TOC 0.5 0.5 0.7 48.71 Yellow Pages Income Fund YLO.UN 0.5 0.5 0.5 13.20 Retailing RETL 0.5 0.5 0.8 2,378.42 Canadian Tire Corp. CTC.A 0.5 0.5 0.4 72.55 Consumer Staples CONS 2.5 2.5 2.6 1,642.06 Metro Inc. MRU.A 0.5 0.5 0.3 35.99 Shoppers Drug Mart SC 2.0 2.0 0.8 49.59 Health Care HC 0.5 0.5 0.8 505.55 CML Healthcare Income Fund CLC.UN 0.5 0.5 0.1 13.22 Financials TSF 33.5 32.5 31.3 1,889.53 Banks BKS 20.5 20.5 18.0 1,960.57 Bank of Nova Scotia BNS 3.5 3.5 3.8 51.95 Cdn. Imperial Bank of Commerce CM 2.0 2.0 2.2 89.70 National Bank NA 1.5 1.5 0.8 63.40 Royal Bank RY 7.5 7.5 5.0 53.28 TD Bank TD 6.0 6.0 3.5 66.97 Diversified Financials DIVFIN 1.5 1.0 1.1 2,043.72 CI Financial IF CIX.UN 0.5 0.5 0.3 26.25 First National Financial IF FN.UN 0.5 -n.m 14.00 IGM Financial Inc. IGM 0.5 0.5 0.4 48.16 Insurance ISR 9.5 9.5 9.1 1,536.15 Great West Lifeco Inc. GWO 1.0 1.0 0.5 33.25 Industrial Alliance IAG 1.0 1.0 0.2 35.98 Manulife Financial Corp. MFC 5.5 5.5 4.3 37.72 Power Financial Corp. PWF 1.0 1.0 0.6 37.31 Sun Life Financial SLF 1.0 1.0 2.1 48.75 Real Estate RES 2.0 1.5 3.1 2,392.76 Brookfield Asset Management Inc. BAM.A 1.0 1.0 1.3 54.54 Cdn. Real Estate Investment Trust REF.UN 0.5 0.5 0.1 31.19 Morguard REIT MRT.UN 0.5 -n.m 13.20 Information Technology Software & Services Cinram Int'l. IF HTC SFTWR CRW.UN 3.5 1.5 0.5 3.0 1.0 - 3.7 0.7 0.1 257.27 614.64 22.40 MacDonald Dettwiler & Assoc. Ltd. MDA 0.5 0.5 0.1 41.33 Teranet IF TF.UN 0.5 0.5 n.m. 8.71 Technology Hardware & Semiconductors* 2.0 2.0 3.0 5,208.42 Onex Corporation OCX 1.0 1.0 0.2 28.20 Research In Motion RIM 1.0 1.0 1.8 158.75 Telecommunication Services CS 6.0 7.5 4.9 833.34 BCE Inc. BCE 0.5 1.5 1.7 28.05 Manitoba Telecom Services Inc. MBT 0.5 0.5 0.2 44.54 Rogers Communications Inc. RCI.B 2.5 2.5 1.4 69.97 TELUS Corp. T.A 2.5 2.5 1.4 54.95 Utilities UTIL 1.5 1.5 1.5 1,762.51 Canadian Utilities CU 0.5 0.5 0.2 44.67 Fortis Inc. FTS 1.0 1.0 0.2 28.15 TOTAL PORTFOLIO/S&P-TSX (Composite) TSX 100 100 100 12,752 * RBCCM Estimate. New additions to the list made November 30, 2006. December 1, 2006 RBC Capital Markets RBC CM FEW Portfolio – New Year 2007 Investment Conclusion (continued) As shown in Exhibit 2, the Fall 2006 FEW portfolio delivered an incremental return over the S&P/TSX Composite of 150bp, providing a total return of +7.15% compared with the S&P/TSX Composite Index benchmark (+5.65%) in the three-month period ending November 30, 20061. The Fall 2006 FEW outperformed the S&P/TSX Composite Index in the Energy, Consumer Staples, Telecom Services and Utilities sectors. Four stocks had absolute returns in excess of 30% during the quarter (Inmet, Potash, Research in Motion and Shawcor). Sectors lagging the market were Materials, and Health Care with disappointing portfolio contributions from Savanna and Keyera. Our selections in the Industrials, Consumer Discretionary, Financials and Technology sectors performed in line with the sub-sector benchmark. The performance of the Information Technology and Materials sector benchmarks (which began the quarter at 3.6% and 15.8% of the S&P/TSX, respectively) were particularly noteworthy, returning +29.3% and 11.3%, respectively. Performance reflected improved investor sentiment to the Technology area (RIM in particular), the positive commodity environment and takeover activity (e.g., Inco). LOOKING FORWARD Decent labour markets, strong corporate balance sheets and cash flow should allow for another year of healthy, but below average, economic gains of close to 2.5% in North America. An upturn in liquidity growth and moderating inflation risks have encouraged us to increase equity exposure by 5% in both the US and Canada. We recommend that North American investors emphasize companies whose fundamentals rank well on growth and predictability metrics. Specifically, investors should seek stocks with an attractive dividend yield, that have demonstrated an ability to grow their dividends over time, that are profitable, and have shown a history of producing relatively stable earnings streams irrespective of the economic circumstance. With this in mind, we recommend overweighting (1) the Financials due to their dividend growth potential, strong return on capital profiles and improving visibility; (2) the Telecom Services companies due to their growing dividend payouts, strong capital positions and ability to benefit from wireless growth; and (3) the Industrials (e.g. transportation and construction/infrastructure) that command pricing strength. In contrast, we recommend underweighting the Energy sector where prices are susceptible to rising inventories and lofty earnings expectations - we prefer the Integrateds in this environment. We have upgraded the recommended weighting in (1) Materials and (2) Health Care from underweight to marketweight. Materials – there is a risk of softening global growth, but the supply-demand balance in many commodity markets remains robust. In particular, we recommend overweighting the gold sector as it should benefit from a positive fundamental balance and the increasing trend towards ‘hard currency’ as a store of wealth. Health Care – value is key, but the lack of earnings visibility remains an ongoing concern. 1 Notes: Past performance is not necessarily indicative of future performance. Performance returns do not take into consideration management fees or other account expenses. The actual performance returns of the Fundamental Equity Weighting portfolio is lower than that disclosed when adjusted to reflect management fees and other account expenses. December 1, 2006 RBC Capital Markets RBC CM FEW Portfolio – New Year 2007 Exhibit 2: RBC CM Fundamental Equity Weighting (FEW) Fall 2006 Portfolio Performance – Last Quarter Weights Closing Price Performance RBC CM S&P/TSX RBC CM S&P/TSX (%) (%) with Price Total Price Total Symbol 1-Sep-06 1-Sep-06 30-Nov-06 1-Sep-06 30-Nov-06 dividend Return Return Return Return Energy ENC 27.0 30.1 28.4 3,292.18 3,189.50 3,448.66 1.44 1.84 -3.12 -2.38 Energy Equipment & Services ENEQP 1.0 1.6 1.4 2,150.76 1,842.12 1,951.35 4.37 4.49 -14.35 -13.35 Savanna Energy Services Corp. SVY 0.5 0.1 0.1 24.96 18.80 18.80 -24.68 -24.68 ShawCor Ltd.1 SCL.A 0.5 0.1 0.1 18.70 24.95 25.00 33.42 33.66 Oil, Gas & Consumable Fuels OIL 26.0 28.5 27.0 3,401.88 3,317.65 3,593.00 1.32 1.74 -2.48 -1.76 Cameco Corp. CCO 2.0 1.2 1.1 46.16 43.26 43.30 -6.28 -6.20 Canadian Natural Resources Ltd. 1 CNQ 3.0 2.3 2.4 58.06 61.90 61.98 6.61 6.74 Enbridge Inc. ENB 0.5 1.0 1.0 36.54 40.20 40.49 10.02 10.80 EnCana Corp. ECA 4.0 3.7 3.5 58.85 59.36 59.47 0.87 1.06 Husky Energy Inc. HSE 2.0 0.7 0.7 76.99 78.37 78.87 1.79 2.44 Imperial Oil Ltd. 1 IMO 0.5 0.9 0.9 42.12 42.89 42.97 1.83 2.02 Keyera Facilities Income Fund KEY.UN 0.5 0.1 0.1 21.95 17.17 17.53 -21.78 -20.15 OPTI Canada Inc. OPC 0.5 0.3 0.2 21.35 19.73 19.73 -7.59 -7.59 Penn West Energy Trust PWT.UN 1.0 0.8 0.6 45.79 36.50 37.52 -20.29 -18.06 Petro-Canada PCA 3.0 1.8 1.9 48.25 51.49 51.59 6.72 6.92 Peyto Energy Trust PEY.UN 0.5 0.2 0.1 22.75 18.93 19.35 -16.79 -14.95 Shell Canada Ltd. SHC 1.0 0.5 0.6 36.30 43.35 43.46 19.42 19.72 Suncor Energy Inc. SU 2.5 3.0 3.0 86.58 90.00 90.08 3.95 4.04 Talisman Energy Inc. TLM 2.5 1.6 1.5 19.57 19.17 19.17 -2.04 -2.04 TransCanada Corp. TRP 2.0 1.3 1.4 35.77 38.64 38.96 8.02 8.92 Vermillion Energy Trust Units VET.UN 0.5 0.2 0.2 35.35 33.31 33.82 -5.77 -4.33 Materials BMS 14.0 15.8 16.0 2,160.19 2,398.87 2,584.27 8.56 8.67 11.05 11.31 Chemicals CHM 1.0 1.6 2.0 1,715.34 2,262.75 2,433.41 20.47 20.69 31.91 32.16 Nova Chemicals Corp. 1 NCX 0.5 0.2 0.2 36.23 33.16 33.26 -8.47 -8.20 Potash Corp. POT 0.5 0.8 1.2 107.72 160.95 161.12 49.42 49.57 Other* (Construction Materials, Containers & Packaging) 0.0 0.1 0.1 2,308.91 2,185.29 2,202.15 -5.35 -4.94 Metals & Mining ex Gold and Steel* 5.5 6.5 5.9 4,282.91 4,761.04 4,812.11 12.12 12.28 11.16 11.49 Alcan Inc. AL 1.5 1.4 1.5 50.35 54.77 55.00 8.78 9.23 First Quantum Minerals FM 1.0 0.3 0.3 63.05 59.82 59.92 -5.12 -4.97 Inco Ltd. N 0.5 1.3 n.m. 85.86 85.47 85.61 -0.45 -0.29 Inmet Mining Corp. IMN 1.0 0.2 0.2 47.24 64.04 64.04 35.56 35.56 Teck Cominco Ltd. TCK.B 1.5 1.2 1.3 74.49 86.05 86.05 15.52 15.52 Gold GLD 7.0 6.4 6.7 2,405.71 2,549.66 2,668.93 3.94 3.99 5.98 6.16 Barrick Gold Corp. ABX 1.5 2.4 2.3 36.90 35.76 35.76 -3.09 -3.09 Eldorado Corp. ELD 1.0 0.1 0.2 5.39 6.50 6.50 20.59 20.59 GoldCorp. Inc. G 2.0 1.0 1.8 30.26 35.71 35.76 18.01 18.18 IAMGold Corp. 1 IMG 0.5 0.2 0.2 12.48 10.98 10.98 -12.02 -12.02 Kinross Gold Corp. K 2.0 0.4 0.4 15.79 14.34 14.34 -9.18 -9.18 Steel STL 0.5 0.6 0.6 3,749.35 3,920.71 4,534.28 10.07 10.26 4.57 4.99 IPSCO Inc. IPS 0.5 0.4 0.4 105.84 116.50 116.70 10.07 10.26 Paper & Forest Products PPRFP 0.0 0.7 0.7 611.86 672.46 742.86 9.90 10.36 Industrials CAP 6.5 5.3 5.5 1,065.43 1,174.39 1,259.06 11.43 11.78 10.23 10.74 Capital Goods CG 2.0 1.7 1.7 471.85 503.11 538.32 4.29 4.74 6.62 7.06 SNC Lavalin Group Inc. SNC 2.0 0.4 0.4 30.99 32.32 32.46 4.29 4.74 Commercial Services & Supplies CMRCL 0.0 0.5 0.4 1,550.62 1,533.55 1,650.69 -1.10 -0.28 Transportation TRNS 4.5 3.1 3.4 2,492.26 2,838.41 3,051.78 14.61 14.91 13.89 14.41 ACE Aviation Holdings Inc. ACE.B 0.5 0.2 0.3 30.18 35.04 35.04 16.10 16.10 Canadian National Railway CNR 2.5 1.9 2.1 47.55 53.62 53.78 12.77 13.11 Canadian Pacific Railway CP 1.5 0.6 0.7 54.20 63.51 63.70 17.18 17.52 Consumer Discretionary CONC 5.0 4.8 5.2 1,178.17 1,258.45 1,369.73 6.80 7.35 6.81 7.43 Automobiles & Components AUTO 0.0 0.8 0.8 1,309.94 1,440.10 1,624.01 9.94 10.46 Consumer Durables & Apparel DUR 0.0 0.4 0.4 2,225.78 2,495.57 2,495.57 12.12 12.12 Consumer Services HOTEL 0.5 0.4 0.8 947.39 1,096.50 1,136.81 18.36 18.36 15.74 16.35 Tim Hortons Inc. THI 0.5 n.m. 0.5 29.85 35.33 35.40 18.36 18.59 Media MEDIA 4.0 2.5 2.5 984.46 1,021.41 1,123.73 5.71 6.37 3.75 4.63 Broadcasting & Cable TV TV Alliance Atlantis Communications Inc. 1 AAC.B 2.0 0.5 1.0 0.1 1.0 0.1 1,297.59 1,404.90 33.14 40.48 1,446.65 40.48 7.99 22.15 8.13 22.15 8.27 8.59 Astral Media Inc. ACM.A 1.0 0.1 0.1 38.34 39.04 39.04 1.83 1.83 Corus Entertainment Inc. CJR.B 0.5 0.1 0.1 38.62 41.00 41.22 6.16 6.72 Other (Publishing, Advertising, Movies & Entertainment)* 2.0 1.5 1.5 10,121.00 10,572.98 10,824.14 3.43 4.62 4.47 5.71 Aeroplan Income Fund AER.UN 0.5 n.m. 0.1 13.60 17.00 17.13 25.00 25.92 Cineplex Galaxy Income Fund CGX.UN 0.5 n.m. n.m. 13.75 12.40 12.69 -9.82 -7.73 Thomson Corporation TOC 0.5 0.7 0.7 44.90 48.71 48.96 8.49 9.04 Yellow Pages Income Fund YLO.UN 0.5 0.5 0.5 14.66 13.20 13.37 -9.96 -8.77 Retailing RETL 0.5 0.8 0.8 2,283.94 2,378.42 2,566.17 3.92 4.16 4.14 4.34 Canadian Tire Corp. CTC.A 0.5 0.4 0.4 69.81 72.55 72.72 3.92 4.16 Consumer Staples CONS Metro Inc. 1 MRU.A 2.5 0.5 2.7 0.3 2.6 0.3 1,622.26 1,642.06 31.10 35.99 1,756.62 36.20 8.20 15.72 8.55 16.40 1.22 1.60 Shoppers Drug Mart SC 2.0 0.8 0.8 46.64 49.59 49.71 6.33 6.58 Continued on next page. December 1, 2006 5 RBC Capital Markets RBC CM FEW Portfolio – New Year 2007 Exhibit 2: RBC CM Fundamental Equity Weighting (FEW) Fall 2006 Portfolio Performance – Last Quarter (continued) Weights Closing Price Performance RBC CM S&P/TSX RBC CM S&P/TSX (%) (%) with Price Total Price Total Symbol 1-Sep-06 1-Sep-06 30-Nov-06 1-Sep-06 30-Nov-06 dividend Return Return Return Return Health Care HC 0.5 1.0 0.8 497.41 505.55 518.36 -11.39 -9.72 1.64 2.04 CML Healthcare Income Fund CLC.UN 0.5 0.1 0.1 14.92 13.22 13.47 -11.39 -9.72 Financials TSF 32.5 30.3 31.3 1,770.33 1,889.53 2,216.84 6.85 7.59 6.73 7.54 Banks BKS 20.5 17.3 18.0 1,830.66 1,960.57 2,347.28 7.51 8.31 7.10 7.96 Bank of Nova Scotia BNS 3.5 3.5 3.8 47.44 51.95 52.34 9.51 10.33 Cdn. Imperial Bank of Commerce CM 2.0 2.0 2.2 80.65 89.70 90.40 11.22 12.09 National Bank NA 1.5 0.7 0.8 60.70 63.40 63.90 4.45 5.27 Royal Bank RY 7.5 4.8 5.0 49.08 53.28 53.68 8.56 9.37 TD Bank TD 6.0 3.5 3.5 64.05 66.97 67.45 4.56 5.31 Diversified Financials DIVFIN 1.0 1.3 1.1 2,179.88 2,043.72 2,380.51 -9.22 -8.00 -6.25 -5.17 CI Financial IF CIX.UN 0.5 0.3 0.3 30.37 26.25 26.75 -13.57 -11.91 IGM Financial Inc. IGM 0.5 0.4 0.4 50.63 48.16 48.56 -4.88 -4.09 Insurance ISR 9.5 8.8 9.1 1,436.74 1,536.15 1,717.74 6.23 6.79 6.92 7.52 Great West Lifeco Inc. GWO 1.0 0.5 0.5 29.31 33.25 33.49 13.44 14.26 Industrial Alliance IAG 1.0 0.2 0.2 33.22 35.98 36.14 8.31 8.79 Manulife Financial Corp. MFC 5.5 4.3 4.3 36.30 37.72 37.90 3.91 4.39 Power Financial Corp. PWF 1.0 0.6 0.6 34.17 37.31 37.56 9.19 9.92 Sun Life Financial SLF 1.0 2.0 2.1 45.69 48.75 49.05 6.70 7.35 Real Estate RES 1.5 3.0 3.1 2,185.01 2,392.76 2,915.46 12.54 13.20 9.51 10.41 Brookfield Asset Management Inc. BAM.A 1.0 1.2 1.3 50.70 54.54 54.72 7.57 7.93 Cdn. Real Estate Investment Trust REF.UN 0.5 0.1 0.1 25.47 31.19 31.51 22.46 23.73 Information Technology HTC 3.0 3.6 3.7 198.98 257.27 258.33 28.60 28.94 29.29 29.30 Software & Services SFTWR 1.0 0.7 0.7 519.18 614.64 614.73 -2.41 -1.51 MacDonald Dettwiler & Asso. Ltd. MDA 0.5 0.1 0.1 36.85 41.33 41.33 12.16 12.16 Teranet IF 1 TF.UN 0.5 n.m. n.m. 10.49 8.71 8.90 -16.97 -15.18 Technology Hardware & Semiconductors* 2.0 2.9 3.0 3,946.76 5,208.42 5,209.21 44.11 44.16 31.97 31.98 Onex Corporation OCX 1.0 0.2 0.2 25.00 28.20 28.23 12.80 12.91 Research In Motion 1 RIM 1.0 1.3 1.8 90.50 158.75 158.75 75.41 75.41 Telecommunication Services CS 7.5 4.9 4.9 792.68 833.34 1,018.31 7.36 8.03 5.13 5.91 BCE Inc. BCE 1.5 1.7 1.7 27.30 28.05 28.38 2.75 3.96 Bell Aliant Regional Communications 1 BA.UN 0.5 0.3 0.3 34.65 27.85 28.71 -19.62 -17.15 Manitoba Telecom Services Inc. MBT 0.5 0.2 0.2 47.27 44.54 45.19 -5.78 -4.40 Rogers Communications Inc. RCI.B 2.5 1.2 1.4 57.89 69.97 69.97 20.87 20.87 TELUS Corp. T.A 2.5 1.4 1.4 52.51 54.95 55.23 4.65 5.17 Utilities UTIL 1.5 1.5 1.5 1,721.50 1,762.51 2,255.69 12.62 13.50 2.38 3.60 Canadian Utilities CU 0.5 0.2 0.2 40.30 44.67 45.21 10.84 12.18 Fortis Inc. FTS 1.0 0.2 0.2 24.80 28.15 28.31 13.51 14.15 TOTAL PORTFOLIO/S&P-TSX (Composite) TSX 100 100 100 12,145 12,752 30,753 6.64 7.15 5.00 5.65 * RBCCM Estimate. 1 New addition to the list made September 1, 2006.
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