Hedge ETS

Investment objective
To provide access to performance representative of the hedge fund asset class.

Investment policy
To provide access to such performance through investment exposure to the RBC Hedge 250 Index (the "Index").

Key features

Access to benchmark performance of the hedge fund asset class
Extensive diversification across more than 250 hedge funds and nine distinct strategies, Royal Bank of Canada has established a comprehensive set of rules to select funds across four sectors
Weightings to strategies are determined based upon Royal Bank of Canada’s estimated weightings of the hedge fund industry
An approximate equal weighting to each Index fund at inception
Daily liquidity through a London quotation (investors should be aware that a liquid secondary market in the shares cannot be guaranteed)
Two types of shares are offered:
- 1X shares, which offer unleveraged exposure to the performance of the Index
- 3X shares, which are levered to target three times exposure to the performance of the Index

Fig 1: Index strategy weighings at 29 February 2008
The composition of the Index by strategy is shown below:

Hedge ETS - Strategy

Fig 2: Establishing Index funds at 29 February 2008

Hedge ETS - Establishing index funds

An outline of the Index rules followed by Royal Bank of Canada to determine funds that comprise the Index and further information on the Index, including the latest value, can be found at www.rbchedge250.com or download the RBC Hedge Fund Index Rules here.

Announcements

Fund information sheet
Latest newsletter
Latest presentation
Half yearly report to 31 December 2007
Annual report to June 2007
RBC Hedge 250 Index Rules