RBC Capital Markets, through its wealth management division, sponsors various wrap fee advisory programs—specifically the RBC Unified Portfolio Program and the Consulting Solutions Program—made available to clients through independent and affiliated registered investment advisors. The programs combine investment advisory services, trade execution, clearing, custody, and administrative services into a single asset-based fee. Clients work with their investment advisors to define their investment objectives and risk tolerance, and select from unified managed accounts, third-party model portfolios, or individual investment managers. RBC Capital Markets acts as a sponsor and custodian, and occasionally as an overlay manager, offering services like tax management and socially responsible investing screens via Envestnet. The firm manages billions in assets and provides access to a wide range of investment strategies, including equities, fixed income, mutual funds, exchange-traded funds, and alternative investments. Additionally, the firm offers securities-based lending and cash sweep programs.
Fee Structure
RBC Capital Markets charges a quarterly asset-based wrap fee that covers investment advisory, brokerage execution, and custody services. The total program fee will not exceed 3.0% annually and is comprised of several components depending on the program selected:
- Investment Advisor Fee — Determined between you and your investment advisor.
- Program Sponsor Fee — Paid to RBC Capital Markets, typically ranging from 0.00% to 0.40% of assets under management.
- Investment Manager Fee — In the Consulting Solutions program or when utilizing specific investment managers, ranging from 0.00% to 0.50% annually.
- Overlay Manager Fee — When RBC Capital Markets acts as overlay manager, the fee is 0.05%. When Envestnet acts as overlay manager, the fee is 0.10% (which includes tax management and/or responsible investing screens).
- Model Provider Fee — Ranges from 0.00% to 0.65% annually depending on the model portfolio used.
Fees are assessed quarterly in advance based on the market value of assets in the account, including cash and margin balances. Minimum account sizes generally range from $2,500 to $200,000 for the RBC Unified Portfolio program, and $100,000 to $600,000 for the Consulting Solutions program.