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City National Rochdale Funds – ‘N-CSR’ for 9/30/16

On:  Friday, 12/9/16, at 12:35pm ET   ·   Effective:  12/9/16   ·   For:  9/30/16   ·   Accession #:  1398344-16-21556   ·   File #:  811-07923

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

12/09/16  City National Rochdale Funds      N-CSR       9/30/16    3:14M                                    FilePoint/FACity National Rochdale California Tax – Exempt Bond Fund 2 Classes/ContractsCity National Rochdale Corporate Bond Fund 2 Classes/ContractsCity National Rochdale Dividend & Income Fund Class N (RIMHX)City National Rochdale Emerging Markets Fund Class N (RIMIX) — Class Y (CNRYX)City National Rochdale Fixed Income Opportunities Fund Class N (RIMOX)City National Rochdale Government Bond Fund 3 Classes/ContractsCity National Rochdale Government Money Market Fund 3 Classes/ContractsCity National Rochdale High Yield Bond Fund 3 Classes/ContractsCity National Rochdale Intermediate Fixed Income Fund Class N (RIMCX) — Institutional Class (CNRIX)City National Rochdale Municipal High Income Fund Class N (CNRNX) — Servicing Class (CNRMX)City National Rochdale U.S. Core Equity Fund 3 Classes/Contracts

Certified Annual Shareholder Report by a Management Investment Company   —   Form N-CSR
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-CSR       Certified Annual Shareholder Report by a            HTML   4.28M 
                          Management Investment Company                          
 3: EX-99.906 CERT  Miscellaneous Exhibit                           HTML     10K 
 2: EX-99.CERT  Miscellaneous Exhibit                               HTML     13K 


N-CSR   —   Certified Annual Shareholder Report by a Management Investment Company


This is an HTML Document rendered as filed.  [ Alternative Formats ]



 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 


FORM N-CSR
 


CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-07923

City National Rochdale Funds
(Exact name of registrant as specified in charter)
 


400 North Roxbury Drive
Beverly Hills, CA 90210
 (Address of principal executive offices) (Zip code)

William J. Souza, Esq.
400 North Roxbury Drive
Beverly Hills, CA 90210
 (Name and address of agent for service)

Registrant’s telephone number, including area code: 1-888-889-0799

Date of fiscal year end: September 30, 2016

Date of reporting period: September 30, 2016
 

 

Item 1.
Reports to Stockholders.

 

 


 

 


 

TABLE OF CONTENTS

 

 

City National Rochdale Funds Annual Report

 

2

Letter to Our Shareholders

4

Fixed Income Funds Investment Adviser’s Report

7

Fixed Income Funds Overview

14

Equity Funds Investment Adviser’s Report

16

Equity Funds Overview

19

Schedule of Investments/Consolidated Schedule of Investments

114

Statements of Assets and Liabilities/Consolidated Statement of Assets and Liabilities

117

Statements of Operations/Consolidated Statement of Operations

120

Statements of Changes in Net Assets/Consolidated Statement of Changes in Net Assets

124

Consolidated Statement of Cash Flows

126

Financial Highlights/Consolidated Financial Highlights

129

Notes to Financial Statements/Consolidated Notes to Financial Statements

145

Report of Independent Registered Public Accounting Firm

146

Trustees and Officers

149

Notice to Shareholders

150

Disclosure of Fund Expenses

153

Board Approval of Advisory and Sub-Advisory Agreements

160

Shareholder Voting Proxy Results

 


 

The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q within 60 days after the end of the period. The Funds’ Form N-Q filings are available on the Commission’s website at http://www.sec.gov, and may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The most current Form N-Q filing is also available on the Funds’ website at www.citynationalrochdalefunds.com and without charge, upon request, by calling 1-888-889-0799.

 

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to the Funds’ portfolio securities, and information on how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ending June 30 is available (1) without charge, upon request, by calling 1-888-889-0799, (2) on the Funds’ website at www.citynationalrochdalefunds.com, and (3) on the Commission’s website at www.sec.gov.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 1

 


 

letter to our shareholders (Unaudited)

September 30, 2016

 

Dear Shareholders,

 

This annual report covers the one-year period ended September 30, 2016. Heading towards the end of the calendar year, risk assets have delivered a wide range of performance outcomes, though mostly positive. The U.S. economy remains on a modest, but solid growth path and appears largely insulated from the direct effects of the slowdown in global growth. The impact of the United Kingdom’s vote to leave the European Union (the “E.U.”) (“Brexit”) is likely to have relatively a small direct impact on the U.S. economy. U.S. economic indicators have improved recently, confirming our view that underlying domestic demand remains solid. We believe there is little evidence to support fears of a major global downturn. China continues to face challenges, but we believe its economy is not collapsing and data from other major economies, while slow, have generally been positive. Geopolitical events, Federal Reserve (“Fed”) tightening, the U.S. presidential election, and uncertainty over global growth may result in heightened volatility and depressed yield levels, but we expect solid returns for U.S. stock investors over the next 12 months.

 

Within fixed income markets, credit quality positioning was of key importance throughout the year, particularly during the most recent quarter. Energy companies were under significant pressure, as $40 - $50 oil (per barrel) dramatically changed profitability projections across the sector. However, these companies seemed to learn to live within this span and defaults in the high yield and low yield space did not spike dramatically (however, the environment is still very challenging, depending on company level leverage). After quickly shaking off a brief bout of volatility spurred by the U.K.’s vote to exit the E.U. at the end of June, corporate credit spreads resumed their tightening trend over the third quarter (“Q3”). As volatility subsided, the flight to safety abated, leading to a slight upward shift in interest rates for U.S. Treasury bonds. Global central banks have maintained their exceptionally easy monetary policies; however, the Bank of Japan has changed its focus to managing the shape of the yield curve from managing short-term interest rates and quantitative easing. Shaking off Brexit-induced volatility, corporate credit spreads tightened in Q3. The fixed-income markets performed exceptionally well in the first half of 2016 as the combination of declining interest rates and tightening credit spreads lifted bond prices and generated returns well in excess of the amount of yield carry that bonds would have otherwise generated.

 

Fed officials have shifted from a defensive stance in the wake of the Brexit vote, to one of cautious optimism. However, the Fed will likely want to see more data before it is willing to commit to another rate hike. Expectations are growing, however, with the Fed funds futures market now pricing in about a 50-75% chance of a rate hike in December. City National Rochdale’s proprietary Multi-Factor Bond Market Model continues to find opportunistic fixed income relatively attractive. The collapse in energy prices is creating significant stress among energy borrowers, but other industries remain relatively healthy. As long as default rates remain low (a reasonable assumption given our gross domestic product (GDP) forecast), below investment-grade debt looks attractive.

 

U.S. stocks continued their march higher in the third quarter. Stocks continued to climb over the summer as worries over higher rates, emerging markets, and commodities mostly faded. Investors were still trying to make sense of the Brexit vote as the quarter began, but that quickly fell into the background as the market was generally docile for most of the summer. The quiet was driven by a few factors. First, U.S. economic data was strong enough to not cause worry about a recession, but not so strong that the Fed would be forced to raise rates. Secondly, fears around China and other emerging markets that had been center stage earlier in the year eased. And finally, even though oil prices did bounce around, they remained much higher than the levels seen at the start of the year. Volatility picked up again toward the end of the quarter as the market reassessed the prospect of a rate increase and concerns over the health of Deutsche Bank kept surfacing. As the fourth quarter (“Q4”) gets started those concerns will likely remain in focus.

 

Fundamentals still supportive of equities include:

 

 

Corporate earnings growth is expected to improve modestly through 2017 as global headwinds of lower energy prices and the stronger dollar slowly fade.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 2

 


 

 

 

Market valuations are in line with long term averages and do not appear excessive, though further multiple expansion is unlikely given larger downside risks.

 

Coming into 2016, we expected to face choppy seas amidst a backdrop of shifting global economic currents and uncertain monetary policy developments around the world. Our unwavering focus on risk management and downside protection continues to serve us well, as capital preservation will always be of paramount importance within all of the investment strategies that we manage. As always, we thank you for your trust and confidence in our abilities to continue to serve you well through your investment in the City National Rochdale Funds.

 

Sincerely,

 

 

Garrett R. D’Alessandro
President and Chief Executive Officer
City National Rochdale Funds

 

Past performance is no guarantee of future results. Certain shareholders may be subject to the Alternative Minimum Tax (AMT). Federal income tax rules apply to any capital gain distributions.

 

This information must be preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing.

 

City National Rochdale Funds do not generally accept investments by non-U.S. persons and may not be available in all states.

 

Bloomberg Barclays U.S. 1-5 Year Government Bond Index is an index of all investment grade bonds with maturities of more than one year and less than 5 years. The index is a market value weighted performance benchmark.

 

Bloomberg Barclays 1-5 Year U.S. Corporate A3 or Higher, 2% Issuer Constrained Index includes U.S. dollar-denominated, investment-grade, fixed-rate, taxable securities issued by industrial, utility, and financial companies, with maturities between 1 and 5 years.

 

Bloomberg Barclays High Yield Municipal Index is an unmanaged index made up of bonds that are non-investment grade, unrated, or rated below Ba1 by Moody’s Investors Service with a remaining maturity of at least one year.

 

Citigroup High Yield Market Capped Index is a US Dollar-denominated index which measures the performance of high-yield debt issued by corporations domiciled in the US or Canada. Recognized as a broad measure of the North American high-yield market amongst all Citi’s fixed income indices, it includes cash-pay and deferred-interest securities. All the bonds are publically placed, have a fixed coupon, and are non-convertible. Bonds issued under Rule 144A are included in their unregistered form.

 

Bloomberg Barclays Intermediate U.S. Government/Credit Index consists of publicly issued, dollar-denominated U.S. Government, agency, or investment grade corporate fixed income securities with maturities from 1 to 10 years. The comparative market index is not directly investable and is not adjusted to reflect expenses that the SEC requires to be reflected in the fund’s performance.

 

Credit Suisse Leveraged Loan Index is designed to mirror the investible universe of the $U.S.-denominated leverage loan market.

 

Bloomberg Barclays Intermediate-Short California Municipal Bond Index measures the performance of California municipal bonds.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 3

 


 

investment adviser’s report (Unaudited)

September 30, 2016

Fixed Income Funds

 

Government Bond Fund – CNBIX

 

The Servicing Class Shares of the Fund posted a return of -0.20% for Q3, which slightly underperformed the Bloomberg Barclays U.S. 1-5 Year Government Bond Index’s -0.17% return. Calendar year to date, as of September 30, 2016, the Fund is lagging the benchmark’s return of 2.18% by 62 basis points with a return of 1.56%. For the fiscal year ended September 30, 2016, the Servicing Class Shares of the Fund have returned 0.84% and the benchmark has delivered a return of 1.52%.

 

As of the most recent quarter, the portfolio maintained its short duration positioning relative to the benchmark in anticipation of an eventual rise in interest rates. This proved to be a headwind during the quarter, as longer duration assets outperformed shorter duration positions. Morningstar rankings reflect the low risk approach of the Fund’s management, as the Fund tracks the benchmark very closely. Due to its capital preservation style, consistency since inception, and the high credit quality of its holdings, we believe the Fund is an attractive investment in a conservative space.

 

Corporate Bond Fund – CNCIX

 

The Servicing Class Shares of the Fund posted a return of 0.68% for Q3, outperforming the Bloomberg Barclays 1-5 Year A3 or Higher U.S. Corporate Index’s return of 0.23%. Calendar year to date, as of September 30, 2016, the Fund is outperforming its benchmark by 0.06% (3.14% for the Fund versus 3.08% for its benchmark). For the fiscal year ended September 30, 2016, the Servicing Class Shares of the Fund have underperformed its benchmark’s return by 0.16 (2.69% for the Fund versus 2.85% for its benchmark).

 

As of the most recent quarter, the Fund continued to outpace its benchmark from a yield and total return perspective, driven by an emphasis on investing in lower quality bonds within the investment grade universe. Sector allocation was additive to relative performance as bonds within the Industrial sector outperformed bonds within the Financial sector. Issuer selection within the Financial sector accompanied by slightly underweight duration relative to the benchmark was a performance tailwind.

 

CALIFORNIA TAX EXEMPT BOND FUND – CNTIX

 

The Servicing Class Shares of the Fund posted a return of -0.13% for Q3, outperforming the Bloomberg Barclays Intermediate-Short California Municipal Bond Index’s return of -0.19% by 6 basis points. Calendar year to date, as of September 30, 2016, the Fund matched the benchmark’s return of 1.98%. For the fiscal year ended September 30, 2016, the Servicing Class Shares of the Fund returned 2.48%, lagging the benchmark’s return of 2.53% by 5 basis points.

 

Yield curve positioning during the third quarter was the driver of outperformance. As short-term yields moved higher we added daily and weekly notes to the Fund portfolio. In addition, the Fund maintained its barbell structure enhancing the returns year to date and over the fiscal year. With short-term rates rising and long term rates shifting downward, the flattening of the yield curve provided a boost to the Fund’s performance. The Fund’s underweight to California General Obligation bonds was additive to performance during the last quarter as the Fund’s yield spreads widened. Another underweight compared to the benchmark was pre-refunded bonds, which helped performance throughout the year. The Fund maintained a neutral duration throughout the first three quarters of the fiscal year but was slightly short compared to the benchmark throughout most of the last quarter, which added to the outperformance.

 

Municipal High Income Bond Fund – CNRMX

 

The Servicing Class Shares of the Fund posted a return of 0.22% for Q3, underperforming the Bloomberg Barclays High Yield Muni Index’s return of 1.29% by 107 basis points. Calendar year to date, as of September 30, 2016, the Fund lagged the benchmark’s return of 9.37% by 311 basis points with a return of 6.26%. For the fiscal year ended September 30, 2016, the Servicing Class Shares of the Fund returned 8.50%, lagging its benchmark’s return of 11.32% by 282 basis points.

 

The primary causes for underperformance versus the benchmark both on a quarterly and annual basis were the Fund’s underweights versus the benchmark in Puerto Rico bonds and in Master Settlement Agreement-backed (tobacco) bonds (“MSA-backed bonds”). During the year, the Fund had less than 5% of its assets in Puerto Rico bonds

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 4

 


 

 

versus the benchmark holding of approximately 24%, and the Fund held less than 2% during Q3. Despite worsening financial distress and a default on July 1 of Puerto Rico’s general obligation bonds, prices generally rose during the year, contributing to the Fund’s underperformance. The team does not believe that a significant holding in Puerto Rico bonds is appropriate, given the continued decline in credit quality on the island. MSA-backed bonds are a significant part of the index as well; the Fund holdings were less than 10% throughout the year and quarter, as part of the Fund’s fundamental policy of remaining diversified across different sectors and individual holdings.

 

High Yield Bond Fund – CHYIX

 

The Servicing Class Shares of the Fund posted a return of 5.29% for Q3, lagging the Citigroup High Yield Market Capped Index’s return of 5.39% by 10 basis points. Calendar year to date, as of September 30, 2016, the Fund is behind the benchmark’s return of 15.36% by 223 basis points with a return of 13.13%. For the fiscal year ended September 30, 2016, the Servicing Class Shares of the Fund returned 9.61%, underperforming its benchmark’s return of 12.46% by 285 basis points.

 

The Fund underperformed its benchmark in nearly all situations because of asset class exposure and risk weights. As of September 30, 2016, the Fund has 83% exposure to high yield bonds and 17% exposure to higher quality assets, such as bank loans (7%), investment grade bonds (5%), and cash (3%). The manager has upgraded the average credit quality of the overall portfolio over the course of the last year, which was intended to help insulate against elevated volatility that has punctuated credit markets over the past few years. The Fund’s approximate 7% allocation to bank loans has also been a constructive hedge against downside risk, as senior secured paper has performed relatively well during periods of market stress. When comparing attribution of returns for only the high yield bonds, the underlying performance has been in line with its benchmark. Therefore, we understand the underperformance and while it is not ideal to lag the benchmark, we are pleased with the absolute level of returns the Fund has produced.

 

Intermediate Fixed Income Fund – RIMCX

 

The Class N Shares of the Fund posted a return of 0.51% for Q3, outperforming the Bloomberg Barclays Intermediate U.S. Government/ Credit Index’s return of 0.16%. Calendar year to date, as of September 30, 2016, the Fund is underperforming its benchmark’s return of 4.24% by 17 basis points with a return of 4.07%. For the fiscal year ended September 30, 2016, the Class N Shares of the Fund returned 3.72%, outperforming its benchmark’s return of 3.52% by 20 basis points.

 

As of the most recent quarter, the Fund continued to outpace its benchmark from a yield and total return perspective, driven by an emphasis on investing in lower quality bonds within the investment grade universe. The significant overweight to corporate credit has been the most meaningful driver of underperformance over the last year. Corporate sector allocation was additive to relative performance as bonds within the Industrial sector outperformed bonds within the Financial sector. Issuer selection within the Financial sector accompanied by slightly underweight duration relative to the benchmark was a performance tailwind.

 

Fixed Income Opportunities Fund – RIMOX

 

The Fund posted a return of 3.95% for Q3, outperforming the Credit Suisse Leveraged Loan Index’s return of 3.10% by 85 basis points. Calendar year to date, as of September 30, 2016, the Fund is outperforming its benchmark’s return of 7.44% by 88 basis points with a return of 8.32%. For the fiscal year ended September 30, 2016, the Fund has returned 8.04%, outperforming its benchmark’s return of 5.33% by 271 basis points.

 

The Fund’s diversified asset class exposures have been instrumental in delivering an attractive yield profile, without assuming an inordinate amount of interest rate risk. With just over 30% of the Fund allocated to a combination of domestic and European bank loans, the strategy has been well positioned to withstand the elevated volatility experienced in credit markets. The Fund’s emerging markets high yield and U.S. high yield bond allocations have been two of the strongest performers during the year. Both of these areas outperformed the more conservative segment of bank loans.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 5

 


 

investment adviser’s report (Unaudited)

September 30, 2016

Fixed Income Funds (continued)

 

This material represents the managers’ assessment of the portfolios and market environment at a specific point in time and should not be relied upon by the reader as research or investment advice.

 

Performance data quoted represents past performance and does not guarantee similar future results. The investment performance and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost, and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1-888-889-0799.

 

Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.

 

The Government Bond Fund’s, Corporate Bond Fund’s, California Tax Exempt Bond Fund’s, Municipal High Income Fund’s, High Yield Bond Fund’s, Intermediate Fixed Income Fund’s and Fixed Income Opportunities Fund’s investment performance reflects voluntary fee waivers in effect. Absent these waivers, total return and yield would be lower. The Adviser intends to continue these arrangements at least through January 31, 2017, but there can be no assurance that City National Rochdale, LLC will continue to waive fees. Effective January 31, 2016, City National Rochdale, LLC discontinued the voluntary fee waivers for the Municipal High Income Fund and High Yield Bond Fund.

 

Mutual fund investing involves risk, including loss of principal. Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise. The securities of mid-cap companies may have greater price volatility and less liquidity than the securities of larger capitalized companies. Emerging markets involve heightened risk related to the same factors as well as increased volatility and lower trading volume.

 

The California Tax Exempt Bond Fund invests primarily in California securities and may be more volatile and susceptible to a single adverse economic or regulatory occurrence affecting those obligations than a fund investing in obligations of a number of states.

 

The credit quality breakdown depicts the credit quality ratings of the Fund’s portfolio securities that are rated by one or both of two major nationally recognized statistical rating organizations (“NRSROs”). The two NRSROs currently utilized for this purpose are Standard & Poor’s (S&P) and Moody’s. When a bond is rated by S&P that rating is utilized. If it is not rated by S&P, the Moody’s rating is utilized. When a security is rated by neither, it is classified as “Not Rated”. For bonds, these credit quality ratings are shown without regard to gradations within a given rating category. For example, securities rated “AA-” or “AA+” have been included in the “AA” rated category. Long-term ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest).

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 6

 


 

fund overview (Unaudited)

September 30, 2016

City National Rochdale Government Bond Fund

 

The Fund seeks to provide current income by investing primarily in securities either issued or guaranteed by the U.S. Government or its agencies or instrumentalities.

 


Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale Government Bond Fund, Servicing Class Shares, versus the Bloomberg Barclays U.S. 1-5 Year Government Bond Index(1)

 

 

(1)

The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced.

 

Past performance is no indication of future performance.

 

The Fund’s comparative benchmark does not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.

 

AVERAGE ANNUAL TOTAL RETURNS

Shares

Ticker
Symbol

1-Year
Return

3-Year
Return

5-Year
Return

10-Year

Return

Servicing Class*^

CNBIX

0.84%

0.86%

0.49%

2.36%

Institutional Class(1)^^†

CNIGX

1.09%

1.15%

0.74%

2.49%

Class N

CGBAX

0.58%

0.61%

0.24%

2.10%

Bloomberg Barclays U.S. 1-5 Year Government Bond Index

n/a

1.52%

1.41%

1.11%

2.97%

 

*

The graph is based on only Servicing Class Shares; performance for Institutional Class and Class N Shares would be different due to differences in fee structures.

(1)

Commenced operations on February 1, 2012.

^

The Fund’s Servicing Class Shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank and certain retirement plan platforms.

^^

The Fund’s Institutional Class Shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank which meet the Fund’s minimum initial investment requirement, and certain tax-deferred retirement plans (including 401(k) plans, employer-sponsored 403(b) plans, 457 plans, profit sharing and money purchase pension plans, defined benefit plans and non-qualified deferred compensation plans) held in plan level or omnibus accounts.

Institutional Class Shares’ performance for the period of October 1, 2006, to February 1, 2012, is that of the Servicing Class Shares.

 

Top Ten Holdings

% OF PORTFOLIO

Tennessee Valley Authority, Ser E

 

6.250%, 12/15/17

5.7%

U.S. Treasury Note

 

2.375%, 12/31/20

4.5%

U.S. Treasury STRIPS

 

2.234%, 11/15/21

3.8%

FNMA

 

2.467%, 10/09/19

3.7%

FNMA

 

0.875%, 02/08/18

3.7%

FNMA

 

3.619%, 12/01/20

3.5%

U.S. Treasury Note

 

2.000%, 11/30/20

3.4%

U.S. Treasury Note

 

2.750%, 02/28/18

3.4%

FNMA

 

1.625%, 11/27/18

3.4%

FNMA

 

1.500%, 11/30/20

3.4%

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 7

 


 

fund overview (Unaudited)

September 30, 2016

City National Rochdale Corporate Bond Fund

 

The Fund seeks to provide current income by investing in a diversified portfolio of fixed income securities, primarily investment grade corporate bonds issued by domestic and international companies denominated in U.S. dollars.

 


Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale Corporate Bond Fund, Servicing Class Shares, versus the Bloomberg Barclays 1-5 Year U.S. Corporate A3 or Higher, 2% Issuer Constrained Index(1)

 

 

(1)

The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced.

 

Past performance is no indication of future performance.

 

The Fund’s comparative benchmark does not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.

 

AVERAGE ANNUAL TOTAL RETURNS

Shares

Ticker
Symbol

1-Year
Return

3-Year
Return

5-Year
Return

10-Year
Return

Servicing Class*^

CNCIX

2.69%

1.65%

2.30%

3.47%

Class N

CCBAX

2.39%

1.38%

2.04%

3.21%

Bloomberg Barclays 1-5 Year U.S. Corporate A3 or Higher, 2% Issuer Constrained Index

n/a

2.85%

2.32%

2.59%

3.88%

 

*

The graph is based on only Servicing Class Shares; performance for Class N Shares would be different due to differences in fee structures.

^

The Fund’s Servicing Class Shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank and certain retirement plan platforms.

 

Top Ten Holdings

% OF PORTFOLIO

Florida State, Hurricane Catastrophe Fund Finance, Ser A, RB

 

2.107%, 07/01/18

3.3%

Total Capital International

 

2.875%, 02/17/22

3.3%

Stone Ridge Reinsurance Risk Premium Interval Fund

2.7%

Lowe’s

 

6.100%, 09/15/17

2.4%

Fifth Third Bank

 

2.250%, 06/14/21

2.4%

Hewlett Packard Enterprise

 

2.393%, 10/05/16

2.4%

Nissan Auto Lease Trust 2015-A,
Ser 2015-A, Cl A3

 

1.400%, 06/15/18

2.3%

VW Credit, MTN

 

1.875%, 10/13/16

2.3%

Standard Chartered, MTN

 

1.700%, 04/17/18

2.3%

Daimler Finance North America

 

2.250%, 7/31/19

2.3%

 

BOND CREDIT QUALITY

CREDIT RATINGS(1)

% OF NET

ASSETS

AAA

4.9%

AA

10.7%

A

37.9%

BBB

40.3%

B

1.1%

NR

0.4%

Registered Investment Company

2.6%

Short-Term Investments and Other Net Assets

1.4%

 

(1)

Credit quality is based on ratings from Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”). Where S&P ratings are not available, credit quality is based on ratings from Moody’s Investor Services, Inc. (“Moody’s”). S&P and Moody’s ratings have been selected for several reasons, including the access to information and materials provided by S&P and Moody’s, as well as the Fund’s consideration of industry practice. The Not Rated category, if applicable, consists of securities that have not been rated by S&P or Moody’s.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 8

 


 

fund overview (Unaudited)

September 30, 2016

City National Rochdale California Tax Exempt Bond Fund

 

The Fund seeks to provide current income exempt from federal and California state income tax by investing primarily in California municipal bonds and notes.

 


Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale California Tax Exempt Bond Fund, Servicing Class Shares, versus the Bloomberg Barclays Intermediate-Short California Municipal Bond Index(1)

 

(1)

The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced.

 

Past performance is no indication of future performance.

 

The Fund’s comparative benchmark does not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.

 

AVERAGE ANNUAL TOTAL RETURNS

Shares

Ticker
Symbol

1-Year
Return

3-Year
Return

5-Year
Return

10-Year

Return

Servicing Class*^

CNTIX

2.48%

2.54%

2.39%

3.18%

Class N

CCTEX

2.20%

2.26%

2.12%

2.92%

Bloomberg Barclays Intermediate-Short California Municipal Bond Index

n/a

2.53%

2.91%

2.83%

3.87%

 

*

The graph is based on only Servicing Class Shares; performance for Class N Shares would be different due to differences in fee structures.

^

The Fund’s Servicing Class Shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank.

 

Top Ten Holdings*

% OF PORTFOLIO

Fairfield County, Redevelopment Agency, TA

 

4.000%, 08/01/17

2.8%

Los Angeles, Unified School District, Ser B, GO, AMBAC Callable 07/01/17 @ 100

 

5.000%, 07/01/19

2.1%

University of California, Ser AT, RB Callable 11/15/20 @ 100

 

1.400%, 05/15/46

2.1%

California Statewide, Communities Development Authority, Kaiser Permanente, Ser B, RB Callable 02/01/17 @ 100

 

1.790%, 04/01/52

2.0%

Irvine Ranch, Water District, Ser A, SAB Callable 10/03/16 @ 100

 

0.800%, 10/01/41

2.0%

Riverside County, Public Safety Communication, Ser A, COP, AMBAC

 

5.000%, 11/01/17

1.7%

Southern California, Public Power Authority, Subordinated Southern Transmission Project, Ser A, RB

 

5.000%, 07/01/17

1.4%

Golden State Tobacco Securitization, Ser A, RB Callable 06/01/23 @ 100

 

5.000%, 06/01/30

1.4%

California Statewide, Communities Development Authority, Kaiser Permanente, Ser A, RB

 

5.000%, 04/01/19

1.4%

San Diego, Public Facilities Financing Authority Sewer Revenue, RB

 

5.000%, 05/15/25

1.3%

 

*

Excludes Cash Equivalents

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 9

 


 

fund overview (Unaudited)

September 30, 2016

City National Rochdale Municipal High Income Fund

 

The Fund seeks to provide a high level of current income that is not subject to federal income tax.

 


Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale Municipal High Income Fund, Servicing Class Shares, versus the Bloomberg Barclays High Yield Municipal Index(1)

 

 

(1)

The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. Effective January 31, 2016, the Adviser discontinued the voluntary fee waivers for the Fund.

 

Past performance is no indication of future performance.

 

The Fund’s comparative benchmark does not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.

 

AVERAGE ANNUAL TOTAL RETURNS

Shares

Ticker

Symbol

1-Year
Return

Inception
to Date

Servicing Class*(1)^

CNRMX

8.50%

8.34%

Class N(1)

CNRNX

8.34%

8.07%

Bloomberg Barclays High Yield Municipal Index

n/a

11.32%

9.00%

 

*

The graph is based on only Servicing Class Shares; performance for Class N Shares would be different due to differences in fee structures.

(1)

Commenced operations on December 30, 2013.

^

The Fund’s Servicing Class Shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank and certain retirement plan platforms.

 

Top Ten Holdings*

% OF PORTFOLIO

California Statewide Communities Development Authority, Ser A, RB Callable 06/01/26 @ 100

 

5.250%, 12/01/56

1.3%

Connecticut State, Health & Educational Facility Authority, RB Callable 06/01/26 @ 100

 

5.000%, 12/01/45

1.2%

TSASC, Inc., Ser 1 Callable 10/19/16 @ 100

 

5.125%, 06/01/42

1.1%

New York State, Liberty Development, RB Callable 11/15/24 @ 100

 

5.000%, 11/15/44

1.1%

Massachusetts State, Ser E Callable 04/01/25 @ 100

 

4.000%, 04/01/42

1.1%

Colorado State, Health Facilities Authority, RB Callable 05/15/26 @ 100

 

4.000%, 11/15/46

1.0%

California State, GO Callable 09/01/26 @ 100

 

5.000%, 09/01/45

0.9%

Children's Trust Fund, Ser A, RB Callable 11/03/16 @ 12

 

7.256%, 05/15/50

0.8%

Golden State Tobacco Securitization, Sub-Ser B, RB Callable 06/01/17 @ 17

 

9.653%, 06/01/47

0.8%

Southeastern Ohio, Port Authority, Memorial Health System Project, RB Callable 12/01/22 @ 100

 

6.000%, 12/01/42

0.8%

 

*

Excludes Cash Equivalents

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 10

 


 

fund overview (Unaudited)

September 30, 2016

City National Rochdale High Yield Bond Fund

 

The Fund seeks to maximize total return by investing primarily in fixed income securities rated below investment grade including corporate bonds and debentures, convertible and preferred securities, zero coupon obligations and debt securities that are issued by U.S. and foreign governments.

 


Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale High Yield Bond Fund, Servicing Class Shares, versus the Citigroup High Yield Market Capped Index(1)

 

 

(1)

The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. Effective January 31, 2016, the Adviser discontinued the voluntary fee waivers for the Fund.

 

Past performance is no indication of future performance.

 

The Fund’s comparative benchmark does not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.

 

AVERAGE ANNUAL TOTAL RETURNS

Shares

Ticker
Symbol

1-Year
Return

3-Year
Return

5-Year
Return

10-Year
Return

Servicing Class*^

CHYIX

9.61%

4.53%

7.24%

6.88%

Institutional Class(1)^^†

CNIHX

9.88%

4.79%

7.49%

7.00%

Class N(1)

CHBAX

9.44%

4.31%

6.98%

6.59%

Citigroup High Yield Market Capped Index

n/a

12.46%

4.71%

7.79%

7.24%

 

*

The graph is based on only Servicing Class Shares; performance for Institutional and Class N Shares would be different due to differences in fee structures.

(1)

Commenced operations on February 2, 2012.

^

The Fund’s Servicing Class Shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank and certain retirement plan platforms.

^^

The Fund’s Institutional Class Shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank which meet the Fund’s minimum initial investment requirement, and certain tax-deferred retirement plans (including 401(k) plans, employer-sponsored 403(b) plans, 457 plans, profit sharing and money purchase pension plans, defined benefit plans and non-qualified deferred compensation plans) held in plan level or omnibus accounts.

Institutional Class Shares’ performance for the period from October 1, 2006, to February 2, 2012, is that of the Servicing Class Shares.

 

Top Ten Holdings*

% OF PORTFOLIO

Epicor Software

 

9.250%, 05/21/23

2.0%

Vector Group

 

7.750%, 02/15/21

1.7%

Kennedy-Wilson

 

5.875%, 04/01/24

1.6%

Ironshore Holdings US

 

8.500%, 05/15/20

1.4%

HRG Group

 

7.875%, 07/15/19

1.3%

Sprint Communications

 

9.000%, 11/15/18

1.3%

AmeriGas Finance

 

7.000%, 05/20/22

1.2%

LBC Tank Terminals Holding Netherlands

 

6.875%, 05/15/23

1.2%

T-Mobile USA

 

6.500%, 01/15/26

1.2%

Bumble Bee Holdings

 

9.000%, 12/15/17

1.2%

 

*

Excludes Cash Equivalents

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 11

 


 

fund overview (Unaudited)

September 30, 2016

City National Rochdale Intermediate Fixed Income Fund

 

The Fund seeks current income and, to the extent consistent with this goal, capital appreciation, by investing primarily in fixed income securities.

 


Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale Intermediate Fixed Income Fund, Class N Shares, versus the Bloomberg Barclays Intermediate U.S. Government/Credit Index(1)

 

 

(1)

The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced.

 

Past performance is no indication of future performance.

 

The Fund’s comparative benchmark does not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.

 

AVERAGE ANNUAL TOTAL RETURNS

Shares

Ticker
Symbol

1-Year
Return

3-Year
Return

5-Year
Return

10-Year
Return

Class N*(1)

RIMCX

3.72%

2.86%

3.26%

3.54%

Institutional Class(2)^

CNRIX

4.20%

3.33%

3.55%

3.68%

Bloomberg Barclays Intermediate U.S. Government/Credit Index

n/a

3.52%

2.80%

2.45%

4.17%

 

*

The graph is based on only Class N Shares; the performance for Institutional Class Shares would be different due to differences in fee structures.

(1)

The predecessor to the City National Rochdale Intermediate Fixed Income Fund (the “Predecessor Fund”) commenced operations on December 31, 1999. On March 29, 2013, the Predecessor Fund was reorganized into the Fund. The performance results for the Class N Shares of the Fund for the period October 1, 2006, to March 29, 2013, reflect the performance of the Predecessor Fund’s Shares.

(2)

Commenced operations on December 20, 2013. The performance results for Institutional Class Shares of the Fund for the period of October 1, 2006, to March 28, 2013, reflect the performance of the Predecessor Fund’s shares. The performance results for the Institutional Class Shares of the Fund for the period March 29, 2013, to December 19, 2013, reflect the performance of the Class N Shares.

^

The Fund’s Institutional Class shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank which meet the minimum initial investment requirement of $1,000,000 and certain tax deferred retirement plans (including 401(k) plans, employer sponsored 403(b) plans, 457 plans, profit sharing and money purchase pension plans, defined benefit plans and non-qualified deferred compensation plans) held in plan level or omnibus accounts.

 

Top Ten Holdings

% OF PORTFOLIO

Svenska Handelsbanken, MTN

 

5.125%, 03/30/20

2.5%

Rio Tinto Finance USA

 

3.750%, 06/15/25

2.4%

FNMA

 

1.625%, 11/27/18

2.3%

Apple

 

2.450%, 08/04/26

2.2%

Stone Ridge Reinsurance Risk Premium Interval Fund

2.2%

U.S. Treasury Inflation Indexed Bonds

 

0.625%, 01/15/26

2.1%

Bank of Nova Scotia

 

2.450%, 03/22/21

2.1%

Morgan Stanley, MTN

 

3.750%, 02/25/23

2.0%

AT&T

 

3.600%, 02/17/23

2.0%

HSBC Holdings

 

3.400%, 03/08/21

2.0%

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 12

 


 

fund overview (Unaudited)

September 30, 2016

City National Rochdale Fixed Income Opportunities Fund

 

The Fund seeks a high level of current income by investing primarily in fixed income securities.

 


Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale Fixed Income Opportunities Fund, Class N Shares, versus the Credit Suisse Leveraged Loan Index, the Bloomberg Barclays U.S. Aggregate Bond Index and the Bloomberg Barclays U.S. Corporate High Yield Bond Index(1)

 

 

(1)

The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced.

 

Past performance is no indication of future performance.

 

The Fund’s comparative benchmarks do not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.

 

AVERAGE ANNUAL TOTAL RETURNS

Shares

Ticker
Symbol

1-Year
Return

3-Year
Return

5-Year
Return

Inception
to Date

Class N(1)

RIMOX

8.04%

4.39%

5.99%

6.70%

Credit Suisse Leveraged Loan Index

n/a

5.33%

3.60%

5.44%

6.87%

Bloomberg Barclays U.S. Aggregate Bond Index

n/a

5.19%

4.03%

3.08%

4.48%

Bloomberg Barclays U.S. Corporate High Yield Bond Index

n/a

12.73%

5.28%

8.34%

10.39%

 

(1)

The predecessor to the City National Rochdale Fixed Income Opportunities Fund (the “Predecessor Fund”) commenced operations on July 1, 2009. On March 29, 2013, the Predecessor Fund was reorganized into the Fund. The performance results for the Class N Shares of the Fund for the period July 1, 2009, to March 29, 2013, reflect the performance of the Predecessor Fund’s Shares.

 

Top Ten Holdings*

% OF PORTFOLIO

EP PetroEcuador via Noble Sovereign Funding I

 

6.487%, 09/24/19

1.0%

Mizuho Bank Ltd.

 

0.950%, 12/19/16

0.9%

Gotham Funding

 

1.002%, 12/23/16

0.9%

Credit Bank of Moscow Via CBOM Finance

 

8.700%, 11/13/18

0.8%

Stone Ridge Reinsurance Risk Premium Interval Fund

0.8%

Dubai World

 

4.750%, 09/30/22

0.7%

AXA Equitable Life #0474

 

Acquired 11/04/13

0.7%

VTB Bank Via VTB Capital

 

6.950%, 10/17/22

0.7%

Altice Financing

 

7.500%, 05/15/26

0.6%

Digicel

 

6.000%, 04/15/21

0.5%

 

*

Excludes Cash Equivalents

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 13

 


 

investment adviser’s report (Unaudited)

September 30, 2016

Equity Funds

 

Dividend & Income Fund – RIMHX

 

The Fund posted a return of -2.11% for Q3, underperforming the blended benchmark’s (Dow Jones U.S. Selected Dividend Index: 60%; BofA ML Core Fixed Rate Preferred Securities Index: 25%; MSCI U.S. REIT Index: 15%) return of 0.74%. Calendar year to date, as of September 30, 2016, the Fund delivered a return of 13.07%, lagging the blended benchmark’s 13.59% return. For the fiscal year ended September 30, 2016, the Class N Shares of the Fund generated a 19.50% return, outperforming the benchmark’s return of 19.00%.

 

The Fund declined -35 basis points in September, essentially in-line with its benchmark, during a month in which defensive and income stocks turned in a mixed performance against a flat broader market. MLPs and Utilities were up +185 basis points and +54 basis points, respectively, while REITs and Staples were down -183 basis points and -154 basis points, respectively. At the same time, underweight preferreds were down -1.0%. Stock reactions to portfolio events, including a number of capital raisings, a buy-side acquisition, and earnings, were modestly negative during the month.

 

U.S. Core Equity Fund – CNRUX

 

The Institutional Class Shares of the Fund posted a return of 4.37% for Q3, outpacing the S&P 500 Index’s return of 3.85% by 52 basis points. Calendar year to date, as of September 30, 2016, the Fund delivered a return of 4.18%, 366 basis points under the S&P 500 Index’s return of 7.84%. For the fiscal year ended September 30, 2016, the Institutional Class Shares of the Fund returned 9.25%, versus 15.43% for the S&P 500 Index.

 

During the most recent quarter stock selection in Health Care and Information Technology positively contributed to returns while Energy and Retailing detracted from returns. Year to date and trailing 12-month returns have been hurt by:

 

1. a give back period after strong returns in calendar 2015;

 

2. a tilt to interest rate sensitive financial stocks as we were expecting the Fed to raise interest rates; and

 

3. underperformance of high quality, growth stocks, especially in the Industrials and Technology sectors, as the market has preferred stocks with higher dividend yield or a value orientation.

 

We are maintaining our focus on high quality, visible earnings and growth companies in our “Choppy Seas” investment thesis, in which we seek to address bouts of market volatility.

 

Emerging Markets Fund – RIMIX

 

The Fund posted returns of 6.71% for Q3, underperforming the MSCI Emerging Markets Index and the MSCI Emerging Markets Asia Index returns of 9.03% and 10.51%, respectively. Calendar year to date, as of September 30, 2016, the Fund returned 8.97%, compared with 16.02% and 12.99% for the MSCI Emerging Markets Index and the MSCI Emerging Markets Asia Index, respectively. For the fiscal year ended September 30, 2016, Class N Shares of the Fund outperformed its benchmarks, with a total return of 17.81%, compared to a 16.78% return for the MSCI Emerging Markets Index (net) and 16.90% for the MSCI Emerging Markets Asia Index (net).

 

In September, relative to the MSCI Emerging Markets Asia Index, the Fund was hurt on all parameters with selection factors driving approximately 45% of underperformance. Much of the selection underperformance was driven by two of our top three holdings, which posted negative returns for the month compared to market (+1.36%) and sector (+3.9%). Year to date, these two stocks remain among the top performers within the Fund and when compared to the broader emerging markets space. Our relatively higher percentage in Indian Information Technology services has also hurt us, following negative pre-announcements and stock specific reasons. Year to date, currency has been the biggest detractor of relative performance, accounting for 85% of the Fund’s underperformance. Sector allocation was also a detractor while stock selection continued to remain positive. The Fund’s higher level of cash also was a detractor of performance during the month (and year to date). On a country-level, being overweight in China, Philippines, India and underweight in Taiwan and South Korea hurt the Fund, while it was helped by its Malaysia holdings and to a lesser extent, Thailand holdings. From a sector perspective, Information Technology dragged down the performance, due to the underperformance of the Fund’s top three holdings

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 14

 


 

 

and exposure in Indian Information Technology services. The Fund’s Consumer Discretionary portfolio also hurt the Fund during the month.

 

This material represents the managers’ assessment of the portfolios and market environment at a specific point in time and should not be relied upon by the reader as research or investment advice.

 

Performance data quoted represents past performance and does not guarantee similar future results. The investment performance and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost, and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1-888-889-0799.

 

Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.

 

The Dividend & Income Fund’s, U.S. Core Equity Fund’s and Emerging Markets Fund’s investment performance reflects voluntary fee waivers in effect. Absent these waivers, total return and yield would be lower. The Adviser intends to continue these arrangements at least through January 31, 2017 but there can be no assurance that City National Rochdale, LLC will continue to waive fees. Effective January 31, 2016, City National Rochdale, LLC discontinued the voluntary fee waivers for the Dividend & Income Fund, U.S. Core Equity Fund and Emerging Markets Fund.

 

Mutual fund investing involves risk including lose of principal. Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise. The securities of mid-cap companies may have greater price volatility and less liquidity than the securities of larger capitalized companies. Emerging markets involve heightened risk related to the same factors as well as increased volatility and lower trading volume.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 15

 


 

fund overview (Unaudited)

September 30, 2016

City National Rochdale Dividend & Income Fund

 

The Fund seeks to provide significant income and, as a secondary focus, long-term capital appreciation, by investing primarily in income-generating securities, principally comprised of dividend-paying equity securities.

 


Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale Dividend & Income Fund, Class N Shares, versus the S&P 500 Index and the 60/25/15 Hybrid of the following 3 Indexes: Dow Jones U.S. Select Dividend Index, BofA ML Core Fixed Rate Preferred Securities Index and MSCI U.S. REIT Index(1)

 

 

(1)

The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. Effective January 31, 2016, the Adviser discontinued the voluntary fee waivers for the Fund.

 

Past performance is no indication of future performance.

 

The Fund’s comparative benchmarks do not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.

 

AVERAGE ANNUAL TOTAL RETURNS

Shares

Ticker
Symbol

1-Year
Return

3-Year
Return

5-Year
Return

10-Year
Return

Class N(1)

RIMHX

19.50%

10.47%

12.52%

7.54%

S&P 500 Index

n/a

15.43%

11.16%

16.37%

7.24%

60/25/15 Hybrid of the following 3 Indexes:

n/a

19.00%

12.66%

14.42%

6.59%

Dow Jones U.S. Select Dividend Index

n/a

22.24%

12.96%

16.46%

7.07%

BofA ML Core Fixed Rate Preferred Securities Index

n/a

10.62%

10.48%

8.28%

3.65%

MSCI U.S. REIT Index

n/a

19.83%

14.11%

15.79%

6.22%

 

(1)

The predecessor to the City National Rochdale Dividend & Income Fund (the “Predecessor Fund”) commenced operations on June 1, 1999. On March 29, 2013, the Predecessor Fund was reorganized into the Fund. The performance results for the Class N Shares of the Fund for the period October 1, 2006, to March 29, 2013, reflect the performance of the Predecessor Fund’s Shares.

 

Top Ten Holdings

% OF PORTFOLIO

B&G Foods

2.6%

Philip Morris International

2.4%

Lockheed Martin

2.4%

Dr Pepper Snapple Group

2.3%

Duke Energy

2.2%

General Mills

2.2%

Lamar Advertising, Cl A

2.2%

Johnson & Johnson

2.1%

Altria Group

2.0%

Clorox

1.9%

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 16

 


 

fund overview (Unaudited)

September 30, 2016

City National Rochdale U.S. Core Equity Fund

 

The Fund seeks to provide long-term capital appreciation by investing primarily in common stock of large and middle capitalization corporations domiciled in the United States.

 


Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale U.S. Core Equity Fund, Servicing Class Shares, versus the S&P 500 Index(1)

 

 

(1)

The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. Effective January 31, 2016, the Adviser discontinued the voluntary fee waivers for the Fund.

 

Past performance is no indication of future performance.

 

The Fund’s comparative benchmark does not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.

 

AVERAGE ANNUAL TOTAL RETURNS

Shares

Ticker
Symbol

1-Year

Return

3-Year
Return

Inception

to Date

Servicing Class*(1)^

CNRVX

8.97%

9.63%

13.11%

Institutional Class(1)^^

CNRUX

9.25%

10.05%

13.61%

Class N(1)

CNRWX

8.63%

9.35%

12.82%

S&P 500 Index

n/a

15.43%

11.16%

14.31%

 

*

The graph is based on only Servicing Class Shares; performance for Institutional and Class N Shares would be different due to differences in fee structures.

(1)

Commenced operations on December 3, 2012.

^

The Fund’s Servicing Class shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank and certain retirement plan platforms.

^^

The Fund’s Institutional Class shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank which meet the minimum initial investment requirements, and certain tax-deferred retirement plans (including 401(k) plans, employer-sponsored 403(b) plans, 457 plans, profit sharing and money purchase pension plans, defined benefit plans and non-qualified deferred compensation plans) held in plan level or omnibus accounts.

 

Top Ten Holdings

% OF PORTFOLIO

Visa, Cl A

3.3%

Alphabet, Cl A

3.1%

MasterCard, Cl A

2.9%

Edwards Lifesciences

2.9%

PG&E

2.8%

Honeywell International

2.8%

CVS Health

2.7%

Home Depot

2.5%

UnitedHealth Group

2.4%

NXP Semiconductors

2.4%

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 17

 


 

fund overview (Unaudited)

September 30, 2016

City National Rochdale Emerging Markets Fund

 

The Fund seeks to provide long-term capital appreciation by investing primarily in the equity securities of companies that are operating principally in emerging market countries.

 


Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale Emerging Markets Fund, Class N shares versus the MSCI Emerging Markets Index and the MSCI Emerging Markets Asia Index(1)

 

 

(1)

The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. Effective January 31, 2016, the Adviser discontinued the voluntary fee waivers for the Fund.

 

Past performance is no indication of future performance.

 

The Fund’s comparative benchmarks do not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.

 

AVERAGE ANNUAL TOTAL RETURNS

Shares

Ticker
Symbol

1-Year
Return

3-Year
Return

Inception
to Date

Class N*(1)

RIMIX

17.81%

7.00%

11.41%

Class Y(2)†

CNRYX

17.92%

7.04%

11.43%

MSCI Emerging Markets Index (net)

n/a

16.78%

-0.56%

2.53%

MSCI Emerging Markets Asia Index (net)

n/a

16.90%

3.48%

6.03%

 

*

The graph is based on only Class N Shares; performance for Class Y Shares would be different due to differences in fee structures.

(1)

Shares of the predecessor to the City National Rochdale Emerging Markets Fund (the “Predecessor Fund”) commenced operations on December 14, 2011. On March 29, 2013, the Predecessor Fund was reorganized into the Fund. The performance results for the Class N Shares of the Fund for the period December 14, 2011, to March 29, 2013, reflect the performance of the Predecessor Fund’s Shares.

(2)

Commenced operations on June 1, 2016.

Class Y Shares’ performance for the period from December 14, 2011 to June 1, 2016 is that of the Class N Shares.

 

Top Ten Holdings*

% OF PORTFOLIO

Tencent Holdings

5.5%

Sunny Optical Technology Group

4.5%

AAC Technologies Holdings

3.2%

Great Wall Motor, Cl H

2.2%

Ping An Insurance Group of China, Cl H

2.0%

Galaxy Entertainment Group

1.9%

HDFC Bank ADR

1.8%

GT Capital Holdings

1.8%

New Oriental Education & Technology Group ADR

1.8%

China Medical System Holdings

1.8%

 

*

Excludes Cash Equivalents

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 18

 


 

schedule of investments

September 30, 2016

City National Rochdale Government Money Market Fund

 


Description

 

Face Amount (000)

   

Value (000)

 

U.S. Government Agency Obligations [73.4%]

 

FAMC DN

           

0.562%, 03/23/17(A)

 

$

40,000

   

$

39,892

 

FFCB

               

0.547%, 10/08/16(B)

   

27,175

     

27,165

 

0.474%, 10/15/16(B)

   

50,000

     

49,999

 

0.541%, 10/18/16(B)

   

50,000

     

50,000

 

0.617%, 01/29/18(B)

   

50,000

     

49,997

 

0.572%, 06/08/18(B)

   

50,000

     

49,992

 

FHLB

               

0.613%, 10/01/16(B)

   

50,000

     

50,000

 

0.588%, 10/01/16(B)

   

50,000

     

50,000

 

0.555%, 10/16/16(B)

   

50,000

     

50,000

 

0.631%, 10/19/16(B)

   

50,000

     

50,000

 

0.560%, 10/24/16(B)

   

50,000

     

50,000

 

0.598%, 11/08/17(B)

   

50,000

     

50,000

 

0.537%, 12/01/17(B)

   

75,000

     

74,996

 

0.567%, 03/01/18(B)

   

50,000

     

50,000

 

0.627%, 03/26/18(B)

   

50,000

     

50,000

 

FHLB DN

               

0.370%, 10/05/16(A)

   

100,000

     

99,996

 

0.365%, 10/07/16(A)

   

107,450

     

107,443

 

0.341%, 10/12/16(A)

   

100,000

     

99,990

 

0.380%, 10/14/16(A)

   

50,000

     

49,993

 

0.395%, 10/21/16(A)

   

150,000

     

149,970

 

0.300%, 10/26/16(A)

   

37,184

     

37,176

 

0.350%, 10/27/16(A)

   

200,000

     

199,956

 

0.348%, 11/02/16(A)

   

51,000

     

50,984

 

0.311%, 11/04/16(A)

   

260,500

     

260,424

 

0.322%, 11/09/16(A)

   

50,000

     

49,983

 

0.344%, 11/16/16(A)

   

100,000

     

99,956

 

0.320%, 11/17/16(A)

   

100,000

     

99,958

 

0.255%, 11/18/16(A)

   

100,000

     

99,966

 

0.581%, 11/23/16(A)

   

141,649

     

141,561

 

0.340%, 11/25/16(A)

   

150,000

     

149,922

 

0.341%, 11/30/16(A)

   

156,000

     

155,911

 

0.345%, 12/02/16(A)

   

113,520

     

113,453

 

0.340%, 12/05/16(A)

   

150,000

     

149,908

 

0.350%, 12/07/16(A)

   

50,000

     

49,967

 

0.353%, 12/09/16(A)

   

93,000

     

92,937

 

0.280%, 12/13/16(A)

   

50,000

     

49,972

 

0.380%, 12/14/16(A)

   

50,000

     

49,961

 

0.330%, 12/16/16(A)

 

 

100,000

   

 

99,930

 

0.324%, 12/21/16(A)

   

50,000

     

49,964

 

0.293%, 12/28/16(A)

   

50,000

     

49,964

 

0.450%, 01/13/17(A)

   

100,000

     

99,870

 

0.466%, 01/18/17(A)

   

50,000

     

49,930

 

0.481%, 01/27/17(A)

   

50,000

     

49,921

 

0.461%, 02/01/17(A)

   

50,000

     

49,921

 

0.451%, 02/02/17(A)

   

50,000

     

49,923

 

0.451%, 02/03/17(A)

   

50,000

     

49,922

 

0.476%, 02/17/17(A)

   

65,500

     

65,380

 

0.484%, 02/24/17(A)

   

50,000

     

49,902

 

0.481%, 03/01/17(A)

   

37,683

     

37,607

 

0.483%, 03/08/17(A)

   

50,000

     

49,894

 

0.554%, 03/15/17(A)

   

48,403

     

48,280

 

0.501%, 03/22/17(A)

   

73,635

     

73,459

 

FHLMC

               

0.875%, 10/14/16

   

50,000

     

50,007

 

FHLMC DN

               

0.441%, 02/06/17(A)

   

50,000

     

49,922

 

FNMA

               

0.552%, 10/20/16(B)

   

50,000

     

49,998

 

1.375%, 11/15/16

   

35,000

     

35,044

 

0.807%, 12/20/17(B)

   

50,000

     

49,991

 
                 

Total U.S. Government Agency Obligations

 

(Cost $4,210,257)

     

4,210,257

 
                 

Municipal Bonds [4.1%]

 

California [1.1%]

 

ABAG Finance Authority for Nonprofit, Miramar Apartments Project, Ser A, RB, FNMA, AMT

               

0.840%, 10/15/16(B) (C) (D)

   

14,600

     

14,600

 

Anaheim, Housing Authority, Sea Wind Apartments Project, Ser C, RB, FNMA, AMT

               

0.870%, 10/15/16(B) (C) (D)

   

6,300

     

6,300

 

California Statewide, Communities Development Authority, Fairway Family Apartments Project, Ser PP, RB, FNMA, AMT

               

0.850%, 10/15/16(B) (C) (D)

   

8,000

     

8,000

 

Los Angeles, Community Redevelopment Agency, Hollywood and Vine Apartments Project, Ser A, RB, FNMA, AMT

               

0.830%, 10/15/16(B) (C) (D)

   

28,450

     

28,450

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 19

 


 

schedule of investments

September 30, 2016

City National Rochdale Government Money Market Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

Sacramento County, Housing Authority, Ashford Heights Apartments Project, Ser H, RB, FNMA, AMT

           

0.870%, 10/06/16(B) (C) (D)

 

$

9,000

   

$

9,000

 
                 

Total California

     

66,350

 
                 

New York [2.2%]

 

New York State, Housing Development Authority, 26th Street Development Project, Ser A, RB, FHLMC

               

0.860%, 10/03/16(B) (C)

   

13,500

     

13,500

 

New York State, Housing Development Authority, 26th Street Development Project, Ser A, RB, FHLMC, AMT

               

0.880%, 10/03/16(B) (C)

   

9,350

     

9,350

 

New York State, Housing Finance Agency, 360 West 43rd Street Project, Ser A, RB, FNMA, AMT

               

0.890%, 10/03/16(B) (C) (D)

   

18,100

     

18,100

 

New York State, Housing Finance Agency, 360 West 43rd Street Project, Ser A, RB, FNMA, AMT

               

0.890%, 10/03/16(B) (C) (D)

   

23,800

     

23,800

 

New York State, Housing Finance Agency, East 84th Street Project, Ser A, RB, FNMA, AMT

               

0.830%, 10/03/16(B) (C) (D)

   

15,000

     

15,000

 

New York State, Housing Finance Agency, Victory Housing Project, Ser 2004-A, RB, FHLMC, AMT

               

0.890%, 10/03/16(B) (C)

   

25,500

     

25,500

 

New York State, Housing Finance Agency, West 38th Street Project, Ser A, RB, FNMA, AMT

               

0.810%, 10/03/16(B) (C) (D)

   

20,000

     

20,000

 
                 

Total New York

     

125,250

 
                 

Texas [0.5%]

 

Houston, Housing Finance, Regency Park Apartments Project, RB, FNMA, AMT

               

0.880%, 10/15/16(B) (C) (D)

   

13,195

     

13,195

 

Texas State, Department of Housing & Community Affairs, Idlewilde Apartments Project, RB, FNMA, AMT

               

0.910%, 10/15/16(B) (C) (D)

 

 

13,190

   

 

13,190

 
                 

Total Texas

     

26,385

 
                 

Washington [0.3%]

 

Washington State, Housing Finance Commission, Vintage Spokane Project, Ser A, RB, FNMA, AMT

               

0.910%, 10/15/16(B) (C) (D)

   

16,295

     

16,295

 
                 

Total Municipal Bonds

 

(Cost $234,280)

     

234,280

 
                 

U.S. Treasury Obligations [1.7%]

 

U.S. Treasury Note

               

0.500%, 01/31/17

   

50,000

     

50,010

 

U.S. Treasury Bill

               

0.387%, 01/26/17(A)

   

50,000

     

49,937

 
                 

Total U.S. Treasury Obligations

 

(Cost $99,947)

     

99,947

 
                 

Repurchase Agreements [16.5%]

 

Barclays (E)

               

0.470%, dated 09/30/16, repurchased on 10/03/16, repurchase price $120,001,567 (collateralized by various U.S. Government obligations, par values ranging from $52,000 to $82,900,000, 0.875% - 3.500%, 01/15/18 to 11/15/45; with a total market value $121,462,956)

   

120,000

     

120,000

 

Goldman Sachs (E)

               

0.480%, dated 09/30/16, repurchased on 10/03/16, repurchase price $125,001,667 (collateralized by various U.S. Government obligations, par values ranging from $14,800,000 to $44,400,000, 0.000% - 1.500%, 11/25/16 to 09/30/21; with a total market value $127,500,000)

   

125,000

     

125,000

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 20

 


 

schedule of investments

September 30, 2016

City National Rochdale Government Money Market Fund (concluded)

 

Description

 

Face Amount (000)/Shares

   

Value (000)

 

Wells Fargo (E)

           

0.470%, dated 09/30/16, repurchased on 10/03/16, repurchase price $700,009,139 (collateralized by various U.S. Government obligations, par values ranging from $25,000 to $203,000,000, 2.000% - 7.000%, 03/20/19 to 09/20/46; with a total market value $711,711,645)

 

$

700,000

   

$

700,000

 
                 

Total Repurchase Agreements

 

(Cost $945,000)

     

945,000

 
                 

Short-Term Investment [4.3%]

 

Morgan Stanley Institutional Liquidity Funds - Government Portfolio, 0.250%**

   

247,808,804

     

247,809

 
                 

Total Short-Term Investment

 

(Cost $247,809)

     

247,809

 
                 

Total Investments [100.0%]

 

(Cost $5,737,293)

   

$

5,737,293

 

 

Percentages are based on Net Assets of $5,735,678 (000).

 

**

The rate reported is the 7-day effective yield as of September 30, 2016.

(A)

Zero coupon security. The rate reported is the effective yield at time of purchase.

(B)

Floating Rate Security — The rate reported is the rate in effect on September 30, 2016.

(C)

Put and Demand Feature — The date reported is the next reset or put date.

(D)

Securities are held in conjunction with a letter of credit from a major bank or financial institution.

(E)

Tri-Party Repurchase Agreement.

 

ABAG — Association of Bay Area Governments

AMT — Alternative Minimum Tax (subject to)

DN — Discount Note

FAMC — Federal Agriculture Mortgage Corporation

FFCB — Federal Farm Credit Bank

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FNMA — Federal National Mortgage Association

RB — Revenue Bond

Ser — Series

 

The following is a list of the inputs used as of September 30, 2016 in valuing the Fund’s investments carried at value (000):

 

Investments in Securities

 

Level 1

   

Level 2

   

Level 3

   

Total

 

U.S. Government Agency Obligations

 

$

   

$

4,210,257

   

$

   

$

4,210,257

 

Municipal Bonds

   

     

234,280

     

     

234,280

 

U.S. Treasury Obligations

   

     

99,947

     

     

99,947

 

Repurchase Agreements

   

     

945,000

     

     

945,000

 

Short-Term Investment

   

247,809

     

     

     

247,809

 

Total Investments in Securities

 

$

247,809

   

$

5,489,484

   

$

   

$

5,737,293

 

 

For the year ended September 30, 2016, there have been no transfers between any of the fair value hierarchy levels. Transfers between Levels are recognized at period end.

 

Amounts designated as “—” are either $0 or have been rounded to $0.

 

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 21

 


 

schedule of investments

September 30, 2016

City National Rochdale Government Bond Fund

 


Description

 

Face Amount (000)

   

Value (000)

 

U.S. Government Agency Obligations [44.9%]

 

FFCB

           

0.722%, 09/20/19(A)

 

$

4,900

   

$

4,899

 

0.721%, 07/26/17(A)

   

5,000

     

5,012

 

FHLB

               

2.375%, 06/10/22

   

3,000

     

3,158

 

FHLB DN

               

0.466%, 10/26/16(B)

   

2,600

     

2,599

 

FNMA

               

5.000%, 02/13/17

   

3,180

     

3,232

 

2.467%, 10/09/19(B)

   

5,805

     

5,572

 

1.875%, 02/19/19

   

445

     

455

 

1.750%, 06/20/19

   

4,525

     

4,622

 

1.625%, 11/27/18

   

5,000

     

5,081

 

1.500%, 11/30/20

   

5,000

     

5,067

 

1.250%, 08/17/21

   

5,000

     

4,987

 

0.875%, 02/08/18

   

5,500

     

5,507

 

0.875%, 05/21/18

   

4,500

     

4,504

 

0.552%, 07/20/17(A)

   

4,455

     

4,457

 

Tennessee Valley Authority, Ser E

               

6.250%, 12/15/17

   

8,000

     

8,517

 
                 

Total U.S. Government Agency Obligations

 

(Cost $67,026)

     

67,669

 
                 

U.S. Treasury Obligations [39.0%]

 

U.S. Treasury Inflation Indexed Bonds

               

0.125%, 04/15/20

   

2,970

     

3,028

 

U.S. Treasury Notes

               

3.000%, 02/28/17

   

1,415

     

1,430

 

2.750%, 02/28/18

   

5,000

     

5,141

 

2.375%, 12/31/20

   

6,500

     

6,840

 

2.000%, 11/30/20

   

5,000

     

5,183

 

1.875%, 10/31/22

   

2,025

     

2,089

 

1.750%, 10/31/18

   

3,000

     

3,058

 

1.625%, 06/30/20

   

2,800

     

2,861

 

1.500%, 12/31/18

   

4,550

     

4,618

 

1.375%, 06/30/18

   

3,400

     

3,436

 

1.375%, 09/30/18

   

5,000

     

5,056

 

1.375%, 04/30/20

 

 

3,500

   

 

3,545

 

1.250%, 12/15/18

   

3,500

     

3,533

 

0.875%, 05/31/18

   

3,175

     

3,182

 

U.S. Treasury STRIPS

               

2.234%, 11/15/21(B)

   

6,100

     

5,734

 
                 

Total U.S. Treasury Obligations

 

(Cost $57,947)

     

58,734

 
                 

U.S. Government Mortgage-Backed Obligations [14.4%]

 

FHLMC, Pool G15696

               

3.000%, 12/01/30

   

2,859

     

3,024

 

FHLMC REMIC, Ser 2011-3874, Cl JA

               

3.000%, 04/15/25

   

1,600

     

1,628

 

FHLMC REMIC, Ser 2011-3877, Cl ND

               

3.000%, 02/15/25

   

517

     

523

 

FNMA, Pool 466656

               

3.130%, 12/01/17

   

4,045

     

4,104

 

FNMA, Pool AS4877

               

3.000%, 04/01/30

   

2,599

     

2,729

 

FNMA, Pool FN0004

               

3.619%, 12/01/20

   

4,865

     

5,237

 

FNMA ARM, Pool 766620

               

2.784%, 10/01/16(A)

   

129

     

135

 

FNMA REMIC, Ser 2010-123, Cl HA

               

2.500%, 03/25/24

   

1,809

     

1,824

 

FNMA REMIC, Ser 2015-93, Cl AD

               

2.000%, 11/25/30

   

2,175

     

2,201

 

GNMA, Pool 329656

               

8.000%, 08/15/22

   

4

     

4

 

GNMA, Pool 376533

               

7.500%, 06/15/24

   

1

     

1

 

GNMA, Pool 398660

               

7.500%, 05/15/26

   

1

     

1

 

GNMA, Pool 497411

               

6.000%, 01/15/29

   

4

     

4

 

GNMA, Pool 584992

               

7.500%, 04/15/32

   

26

     

29

 

GNMA ARM, Pool G2 81318

               

2.125%, 10/01/16(A)

   

184

     

193

 

GNMA ARM, Pool G2 81447

               

1.875%, 10/01/16(A)

   

37

     

38

 
                 

Total U.S. Government Mortgage-Backed Obligations

 

(Cost $21,546)

     

21,675

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 22

 


 

schedule of investments

September 30, 2016

City National Rochdale Government Bond Fund (concluded)

 

Description

 

Face Amount (000)/Shares

   

Value (000)

 

Municipal Bond [0.2%]

 

California [0.2%]

 

Southern California Public Power Authority, Sub-Ser B, AGM, ETM

           

6.930%, 05/15/17

 

$

300

   

$

311

 
                 

Total Municipal Bond

 

(Cost $311)

     

311

 
                 

Short-Term Investments [1.1%]

 

City National Rochdale Government Money Market Fund, Institutional Class, 0.030%** ‡

   

855,309

     

855

 

SEI Daily Income Trust Government Fund, Cl A, 0.220%**

   

855,308

     

855

 
                 

Total Short-Term Investments

 

(Cost $1,710)

     

1,710

 
                 

Total Investments [99.6%]

 

(Cost $148,540)

   

$

150,099

 

 

Percentages are based on Net Assets of $150,658 (000).

 

**

The rate reported is the 7-day effective yield as of September 30, 2016.

Investment in Affiliate.

(A)

Floating Rate Security — The rate reported is the rate in effect on September 30, 2016.

(B)

Zero coupon security. The rate reported is the effective yield at time of purchase.

 

AGM — Assured Guarantee Municipal

ARM — Adjustable Rate Mortgage

Cl — Class

DN — Discount Note

ETM — Escrowed to Maturity

FFCB — Federal Farm Credit Bank

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FNMA — Federal National Mortgage Association

GNMA — Government National Mortgage Association

REMIC — Real Estate Mortgage Investment Conduit

Ser — Series

STRIPS — Separate Trading of Registered Interest and Principal of Securities.

 

The following is a list of the inputs used as of September 30, 2016 in valuing the Fund’s investments carried at value (000):

 

Investments in Securities

 

Level 1

   

Level 2

   

Level 3

   

Total

 

U.S. Government Agency Obligations

 

$

   

$

67,669

   

$

   

$

67,669

 

U.S. Treasury Obligations

   

     

58,734

     

     

58,734

 

U.S. Government Mortgage-Backed Obligations

   

     

21,675

     

     

21,675

 

Municipal Bond

   

     

311

     

     

311

 

Short-Term Investments

   

1,710

     

     

     

1,710

 

Total Investments in Securities

 

$

1,710

   

$

148,389

   

$

   

$

150,099

 

 

For the year ended September 30, 2016, there have been no transfers between any of the fair value hierarchy levels. Transfers between Levels are recognized at period end.

 

Amounts designated as “—” are either $0 or have been rounded to $0.

 

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 23

 


 

schedule of investments

September 30, 2016

City National Rochdale Corporate Bond Fund

 


Description

 

Face Amount (000)

   

Value (000)

 

Corporate Bonds [86.0%]

 

Auto-Med and Heavy Duty Trks [0.8%]

 

PACCAR Financial, MTN

           

1.750%, 08/14/18

 

$

1,000

   

$

1,011

 
                 

Automotive [1.9%]

 

American Honda Finance, MTN

               

1.700%, 09/09/21

   

2,500

     

2,483

 
                 

Banks [13.0%]

 

Bank of Nova Scotia

               

2.450%, 03/22/21

   

2,500

     

2,560

 

Barclays Bank, MTN

               

1.253%, 10/10/16(A)

   

1,950

     

1,940

 

Capital One

               

2.350%, 08/17/18

   

500

     

506

 

1.850%, 09/13/19

   

1,500

     

1,503

 

Fifth Third Bank

               

2.250%, 06/14/21

   

3,000

     

3,050

 

JPMorgan Chase

               

6.300%, 04/23/19

   

2,000

     

2,228

 

6.000%, 01/15/18

   

405

     

428

 

National Australia Bank, MTN

               

2.750%, 03/09/17

   

480

     

484

 

Nordea Bank, MTN

               

2.375%, 04/04/19(B)

   

1,000

     

1,018

 

Standard Chartered, MTN

               

1.700%, 04/17/18(B)

   

3,000

     

2,992

 
                 

Total Banks

     

16,709

 

Broadcasting & Cable [1.2%]

 

CBS

               

4.300%, 02/15/21

 

 

1,400

   

 

1,521

 
                 

Computer System Design & Services [3.2%]

 

Apple

               

2.850%, 02/23/23

   

1,000

     

1,053

 

Hewlett Packard Enterprise

               

2.393%, 10/05/16(A) (B)

   

3,000

     

3,023

 
                 

Total Computer System Design & Services

     

4,076

 
                 

Computers-Memory Devices [0.8%]

 

NetApp

               

2.000%, 12/15/17

   

1,000

     

1,002

 
                 

Diagnostic Equipment [0.5%]

 

Danaher

               

1.650%, 09/15/18

   

700

     

706

 
                 

Diversified Operations [1.6%]

 

Siemens Financial

               

5.750%, 10/17/16(B)

   

2,000

     

2,003

 
                 

Drugs [0.8%]

 

AbbVie

               

2.500%, 05/14/20

   

1,000

     

1,020

 
                 

Electric Utilities [2.6%]

 

American Electric Power

               

1.650%, 12/15/17

   

1,000

     

1,002

 

Commonwealth Edison

               

6.950%, 07/15/18

   

1,000

     

1,085

 

Exelon Generation

               

6.200%, 10/01/17

   

1,200

     

1,253

 
                 

Total Electric Utilities

     

3,340

 
                 

Financial Services [12.2%]

 

Daimler Finance North America

               

2.250%, 07/31/19(B)

   

2,900

     

2,944

 

Ford Motor Credit

               

2.551%, 10/05/18

   

2,000

     

2,029

 

2.375%, 01/16/18

   

1,000

     

1,008

 

Harley-Davidson Funding

               

6.800%, 06/15/18(B)

   

2,500

     

2,715

 

Nissan Motor Acceptance, MTN

               

1.950%, 09/12/17(B)

   

1,000

     

1,004

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 24

 


 

schedule of investments

September 30, 2016

City National Rochdale Corporate Bond Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

Toyota Motor Credit, MTN

           

2.050%, 01/12/17

 

$

2,000

   

$

2,004

 

VW Credit, MTN

               

1.875%, 10/13/16

   

3,000

     

3,000

 

Western Union

               

5.930%, 10/01/16

   

1,000

     

1,000

 
                 

Total Financial Services

     

15,704

 
                 

Food, Beverage & Tobacco [3.3%]

 

Anheuser-Busch InBev Finance

               

2.017%, 11/02/16(A)

   

2,000

     

2,053

 

Kraft Heinz Foods

               

2.000%, 07/02/18

   

1,000

     

1,009

 

Molson Coors Brewing

               

1.450%, 07/15/19

   

1,250

     

1,246

 
                 

Total Food, Beverage & Tobacco

     

4,308

 
                 

Food-Confectionery [0.2%]

 

JM Smucker

               

2.500%, 03/15/20

   

250

     

256

 
                 

Insurance [2.7%]

 

Berkshire Hathaway

               

2.100%, 08/14/19

   

2,000

     

2,045

 

Genworth Holdings

               

7.700%, 06/15/20

   

1,400

     

1,389

 
                 

Total Insurance

     

3,434

 
                 

Investment Banker/Broker Dealer [12.5%]

 

Bank of America, MTN

               

6.400%, 08/28/17

   

400

     

417

 

1.516%, 04/01/19(A)

   

2,600

     

2,616

 

Citigroup

               

2.255%, 09/01/23(A)

   

1,000

     

1,005

 

Credit Suisse Group Funding Guernsey

               

3.450%, 04/16/21(B)

   

1,250

     

1,275

 

Deutsche Bank, MTN

               

2.850%, 05/10/19

   

1,450

     

1,419

 

Goldman Sachs Group

               

2.625%, 01/31/19

   

500

     

510

 

HSBC Holdings

               

3.400%, 03/08/21

   

2,500

     

2,586

 

Jefferies Group

               

5.125%, 01/20/23

   

1,300

     

1,385

 

Macquarie Group

               

6.000%, 01/14/20(B)

   

2,000

     

2,211

 

Morgan Stanley, MTN

               

5.950%, 12/28/17

 

 

465

   

 

490

 

3.750%, 02/25/23

   

2,000

     

2,124

 
                 

Total Investment Banker/Broker Dealer

     

16,038

 
                 

Medical Labs and Testing Srv [1.2%]

 

Laboratory Corp of America Holdings

               

2.625%, 02/01/20

   

1,500

     

1,528

 
                 

Medical-HMO [2.2%]

 

Aetna

               

2.400%, 06/15/21

   

1,250

     

1,264

 

UnitedHealth Group

               

1.625%, 03/15/19

   

1,500

     

1,509

 
                 

Total Medical-HMO

     

2,773

 
                 

Multi-line Insurance [2.1%]

 

MetLife

               

4.750%, 02/08/21

   

2,400

     

2,687

 
                 

Petroleum & Fuel Products [6.3%]

 

Kinder Morgan Energy Partners

               

6.000%, 02/01/17

   

1,000

     

1,015

 

Korea National Oil, MTN

               

2.750%, 01/23/19(B)

   

1,500

     

1,537

 

Sunoco Logistics Partners Operations

               

4.650%, 02/15/22

   

1,300

     

1,402

 

Total Capital International

               

2.875%, 02/17/22

   

4,000

     

4,195

 
                 

Total Petroleum & Fuel Products

     

8,149

 
                 

Real Estate Investment Trusts [5.2%]

 

American Tower

               

7.250%, 05/15/19

   

1,200

     

1,346

 

HCP

               

3.150%, 08/01/22

   

1,000

     

1,013

 

Kimco Realty

               

6.875%, 10/01/19

   

1,080

     

1,237

 

Simon Property Group

               

2.500%, 09/01/20

   

2,000

     

2,062

 

Welltower

               

4.700%, 09/15/17

   

1,000

     

1,030

 
                 

Total Real Estate Investment Trusts

     

6,688

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 25

 


 

schedule of investments

September 30, 2016

City National Rochdale Corporate Bond Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

Regional Authority [1.7%]

 

Province of Ontario Canada

           

4.400%, 04/14/20

 

$

2,000

   

$

2,203

 
                 

Retail [4.6%]

 

AutoZone

               

4.000%, 11/15/20

   

1,400

     

1,507

 

Lowe’s

               

6.100%, 09/15/17

   

3,000

     

3,141

 

Walgreens Boots Alliance

               

3.100%, 06/01/23

   

1,200

     

1,238

 
                 

Total Retail

     

5,886

 
                 

Telephones & Telecommunications [3.9%]

 

America Movil

               

5.000%, 03/30/20

   

2,600

     

2,857

 

AT&T

               

3.600%, 02/17/23

   

2,000

     

2,108

 
                 

Total Telephones & Telecommunications

     

4,965

 
                 

Trucking & Leasing [1.5%]

 

Penske Truck Leasing

               

4.875%, 07/11/22(B)

   

1,100

     

1,228

 

3.750%, 05/11/17(B)

   

750

     

760

 
                 

Total Trucking & Leasing

     

1,988

 
                 

Total Corporate Bonds

 

(Cost $108,584)

     

110,478

 
                 

Municipal Bonds [5.4%]

 

California [1.1%]

 

State of California, GO

               

6.200%, 03/01/19

   

1,300

     

1,444

 
                 

Florida [3.3%]

 

Florida State, Hurricane Catastrophe Fund Finance, Ser A, RB

               

2.107%, 07/01/18

   

4,130

     

4,207

 
                 

New York [1.0%]

 

New York State, Urban Development, RB

               

2.790%, 03/15/21

   

1,205

     

1,249

 
                 

Total Municipal Bonds

 

(Cost $6,797)

     

6,900

 
 
Description       Face Amount (000)/Shares       Value (000)  

Asset-Backed Securities [3.9%]

 

Ford Credit Floorplan Master Owner Trust A, Ser 2016-3, Cl A1

             

1.550%, 07/15/21

 

$

2,000

   

$

2,001

 

Nissan Auto Lease Trust 2015-A, Ser 2015-A, Cl A3

               

1.400%, 06/15/18

   

3,000

     

3,005

 
                 

Total Asset-Backed Securities

 

(Cost $4,999)

     

5,006

 
                 

Closed-End Fund [2.6%]

 

Stone Ridge Reinsurance Risk Premium Interval Fund (C)

   

318,927

     

3,409

 
                 

Total Closed-End Fund

 

(Cost $3,250)

     

3,409

 
                 

U.S. Government Mortgage-Backed Obligation [0.0%]

 

FNMA REMIC, Ser 2002-56, Cl MC

               

5.500%, 09/25/17

   

3

     

3

 
                 

Total U.S. Government Mortgage-Backed Obligation

 

(Cost $3)

     

3

 
                 

Short-Term Investments [1.4%]

 

City National Rochdale Government Money Market Fund, Institutional Class, 0.030%** ‡

   

807,344

     

808

 

Goldman Sachs Financial Square Funds - Government Fund, 0.2936%**

   

1,024,306

     

1,024

 
                 

Total Short-Term Investments

 

(Cost $1,832)

     

1,832

 
                 

Total Investments [99.3%]

 

(Cost $125,465)

   

$

127,628

 

 

Percentages are based on Net Assets of $128,500 (000).

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 26

 


 

schedule of investments

September 30, 2016

City National Rochdale Corporate Bond Fund (concluded)

 

**

The rate reported is the 7-day effective yield as of September 30, 2016.

Investment in Affiliate.

(A)

Floating Rate Security — The rate reported is the rate in effect on September 30, 2016.

(B)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally to qualified institutions. On September 30, 2016, the value of these securities amounted to $22,710 (000), representing 17.7% of the net assets of the Fund.

(C)

Security is considered illiquid. The total market value of the securities as of September 30, 2016 was $3,409 (000) and represented 2.6% of net assets of the Fund.

 

Cl — Class

FNMA — Federal National Mortgage Association

GO — General Obligation

MTN — Medium Term Note

RB — Revenue Bond

REMIC — Real Estate Mortgage Investment Conduit

Ser — Series

 

The following is a list of the inputs used as of September 30, 2016 in valuing the Fund’s investments carried at value (000):

 

Investments in Securities

 

Level 1

   

Level 2

   

Level 3

   

Total

 

Corporate Bonds

 

$

   

$

110,478

   

$

   

$

110,478

 

Municipal Bonds

   

     

6,900

     

     

6,900

 

Asset-Backed Securities

   

     

5,006

     

     

5,006

 

Closed-End Fund

   

3,409

     

     

     

3,409

 

U.S. Government Mortgage-Backed Obligation

   

     

3

     

     

3

 

Short-Term Investments

   

1,832

     

     

     

1,832

 

Total Investments in Securities

 

$

5,241

   

$

122,387

   

$

   

$

127,628

 

 

For the year ended September 30, 2016, there have been no transfers between any of the fair value hierarchy levels. Transfers between Levels are recognized at period end.

 

Amounts designated as “—” are either $0 or have been rounded to $0.

 

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 27

 


 

schedule of investments

September 30, 2016

City National Rochdale California Tax Exempt Bond Fund

 


Description

 

Face Amount (000)

   

Value (000)

 

Municipal Bonds [96.6%]

 

California [95.1%]

 

Bay Area Toll Authority, Ser C, RB

           

Callable 10/01/18 @ 100

           

1.875%, 04/01/47(A)

 

$

1,200

   

$

1,220

 

Bay Area Toll Authority, Ser D, RB

               

Callable 10/01/19 @ 100

               

1.875%, 04/01/34(A)

   

750

     

764

 

Berkeley, Joint Powers Financing Authority, RB, BAM

               

Callable 06/01/26 @ 100

               

4.000%, 06/01/29

   

530

     

601

 

Brea, Redevelopment Agency Successor, Redevelopment Project AB, TA

               

5.000%, 08/01/20

   

500

     

572

 

Brea, Redevelopment Agency Successor, Redevelopment Project AB, TA

               

Callable 08/01/23 @ 100

               

5.000%, 08/01/25

   

500

     

608

 

California State University, Ser A, RB

               

Callable 05/01/26 @ 100

               

5.000%, 11/01/27

   

240

     

310

 

California State, Department of Water Resources, Ser F-3, RB

               

Pre-Refunded @ 100

               

4.375%, 05/01/18(B)

   

200

     

211

 

California State, Educational Facilities Authority, Chapman University, RB

               

Callable 04/01/25 @ 100

               

5.000%, 04/01/26

   

100

     

126

 

California State, Educational Facilities Authority, Chapman University, RB

               

Callable 04/01/25 @ 100

               

5.000%, 04/01/27

 

 

100

   

 

125

 

California State, GO

               

4.000%, 03/01/18

   

1,000

     

1,044

 

California State, GO

               

4.000%, 02/01/19

   

1,000

     

1,072

 

California State, GO

               

5.000%, 11/01/19

   

1,000

     

1,124

 

California State, GO

               

5.000%, 09/01/20

   

1,000

     

1,154

 

California State, GO

               

5.000%, 12/01/21

   

1,000

     

1,196

 

California State, GO

               

5.250%, 09/01/22

   

1,000

     

1,230

 

California State, GO

               

Callable 11/01/20 @ 100

               

5.000%, 11/01/22

   

1,025

     

1,192

 

California State, GO

               

4.000%, 09/01/26

   

1,000

     

1,207

 

California State, GO

               

Callable 12/01/23 @ 100

               

5.000%, 12/01/26

   

1,000

     

1,244

 

California State, GO

               

Callable 11/01/23 @ 100

               

5.000%, 11/01/27

   

500

     

620

 

California State, GO

               

Callable 06/01/19 @ 100

               

3.000%, 12/01/32(A)

   

1,000

     

1,051

 

California State, GO

               

Callable 04/01/18 @ 100

               

5.125%, 04/01/33

   

1,050

     

1,116

 

California State, Health Facilities Financing Authority, Adventis Health System Project, Ser B, RB

               

Callable 10/03/16 @ 100

               

0.800%, 09/01/38(A) (C)

   

500

     

500

 

California State, Health Facilities Financing Authority, Catholic Healthcare, Ser A, RB

               

Callable 03/01/21 @ 100

               

5.250%, 03/01/22

   

265

     

309

 

California State, Health Facilities Financing Authority, Cedars-Sinai Medical Center, RB

               

5.000%, 08/15/17

   

750

     

777

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 28

 


 

schedule of investments

September 30, 2016

City National Rochdale California Tax Exempt Bond Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

California State, Health Facilities Financing Authority, City of Hope, Ser A, RB

           

5.000%, 11/15/17

 

$

375

   

$

392

 

California State, Health Facilities Financing Authority, Insured Marshall Medical Center, RB

               

Callable 11/01/24 @ 100

               

5.000%, 11/01/29

   

250

     

305

 

California State, Health Facilities Financing Authority, St. Joseph Health System, Ser B, RB

               

5.000%, 07/01/43(A)

   

875

     

911

 

California State, Health Facilities Financing Authority, St. Joseph Health System, Ser D, RB

               

5.000%, 07/01/43(A)

   

975

     

1,123

 

California State, Health Facilities Financing Authority, Sutter Health, Ser A, RB

               

5.500%, 08/15/17

   

500

     

520

 

California State, Health Facilities Financing Authority, Sutter Health, Ser A, RB

               

5.500%, 08/15/18

   

125

     

136

 

California State, Kindergarten Project, Ser B-1, GO

               

Callable 10/03/16 @ 100

               

0.720%, 05/01/34(A) (C)

   

1,000

     

1,000

 

California State, Municipal Finance Authority, Chevron USA Recovery Zone Project, RB

               

Callable 11/01/16 @ 100

               

0.770%, 11/01/35(A)

   

1,000

     

1,000

 

California State, Public Works Board, Department of Corrections and Rehab Project, Ser A, RB

               

4.000%, 09/01/17

   

500

     

515

 

California State, Public Works Board, Department of Corrections and Rehab Project, Ser A, RB

               

5.000%, 09/01/22

   

1,000

     

1,215

 

California State, Public Works Board, Department of Corrections-State Prisons, Ser A, RB, AMBAC

               

5.000%, 12/01/19

   

660

     

707

 

California State, Public Works Board, Judicial Council, Ser B, RB

               

5.000%, 10/01/23

 

 

475

   

 

593

 

California State, Public Works Board, Ser G, RB

               

Callable 09/01/23 @ 100

               

5.000%, 09/01/27

   

1,000

     

1,223

 

California State, Public Works Board, Various Capital Projects, Ser G-1, RB

               

Callable 10/01/19 @ 100

               

5.250%, 10/01/23

   

250

     

281

 

California State, Ser E, GO

               

Callable 06/01/18 @ 100

               

1.202%, 12/01/29(A)

   

1,000

     

999

 

California Statewide, Communities Development Authority, Cottage Health System, RB

               

Callable 11/01/24 @ 100

               

5.000%, 11/01/25

   

350

     

438

 

California Statewide, Communities Development Authority, Kaiser Permanente, Ser A, RB

               

5.000%, 04/01/19

   

1,235

     

1,362

 

California Statewide, Communities Development Authority, Kaiser Permanente, Ser B, RB

               

Callable 02/01/17 @ 100

               

1.790%, 04/01/52(A)

   

2,000

     

2,003

 

California Statewide, Communities Development Authority, Sutter Health, Ser A, RB

               

5.000%, 08/15/18

   

220

     

237

 

Chula Vista, Elementary School District, School Building Project, Ser A, COP, AGM

               

5.000%, 09/01/22

   

1,000

     

1,200

 

Chula Vista, Police Facility Project, COP

               

5.000%, 10/01/21

   

360

     

424

 

El Dorado, Irrigation District, Ser A, RB, AGM

               

4.500%, 03/01/19

   

500

     

543

 

Fairfield County, Redevelopment Agency, TA

               

4.000%, 08/01/17

   

2,630

     

2,699

 

Gilroy, Public Facilities Financing Authority, RB

               

5.000%, 11/01/21

   

940

     

1,113

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 29

 


 

schedule of investments

September 30, 2016

City National Rochdale California Tax Exempt Bond Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

Golden State Tobacco Securitization, Ser A, RB

           

5.000%, 06/01/19

 

$

1,000

   

$

1,108

 

Golden State Tobacco Securitization, Ser A, RB

               

Callable 06/01/23 @ 100

               

5.000%, 06/01/30

   

1,140

     

1,365

 

Hemet, Unified School District, GO, AGM

               

4.000%, 08/01/24

   

500

     

581

 

Imperial, Irrigation District Electric System Revenue, Ser B-2, RB

               

Callable 11/01/26 @ 100

               

5.000%, 11/01/28

   

1,000

     

1,286

 

Irvine Ranch, Water District, Ser A, SAB

               

Callable 10/03/16 @ 100

               

0.800%, 10/01/41(A) (C)

   

2,000

     

2,000

 

Irvine, Unified School District, SPL Tax, BAM

               

Callable 03/01/25 @ 100

               

5.000%, 09/01/30

   

250

     

305

 

JPM Chase Putters, Ser 2015-ZF0184, RB

               

0.940%, 12/01/22(A) (D) (E)

   

1,000

     

1,000

 

Jurupa, Unified School District, GO, AGM

               

5.000%, 08/01/22

   

1,000

     

1,205

 

Long Beach, Harbor Revenue, Ser C, RB

               

4.000%, 11/15/18

   

500

     

533

 

Los Angeles County, Disney Parking Hall Project, COP

               

5.000%, 09/01/22

   

500

     

604

 

Los Angeles County, Metropolitan Transportation Authority, Ser A, RB

               

Callable 07/01/25 @ 100

               

5.000%, 07/01/26

   

500

     

641

 

Los Angeles County, Public Works Financing Authority, Ser D, RB

               

Callable 12/01/25 @ 100

               

5.000%, 12/01/28

   

600

     

755

 

Los Angeles, Department of Airports, Senior International Governmental, Ser C, RB

               

4.000%, 05/15/17

   

545

     

556

 

Los Angeles, Department of Airports, Ser C, RB

               

5.000%, 05/15/25

   

550

     

698

 

Los Angeles, Department of Water & Power System, Ser A, RB

               

5.000%, 07/01/19

 

 

500

   

 

556

 

Los Angeles, Department of Water & Power System, Ser C, RB

               

5.000%, 07/01/23

   

500

     

623

 

Los Angeles, Department of Water & Power, Sub-Ser A-3, RB

               

Callable 11/01/16 @ 100

               

0.760%, 07/01/35(A)

   

500

     

500

 

Los Angeles, Municipal Improvement Authority, Capital Equipment, Ser A, RB

               

4.000%, 11/01/19

   

575

     

627

 

Los Angeles, Sanitation Districts Financing Authority, Sub-Ser, RB

               

Callable 10/01/25 @ 100

               

5.000%, 10/01/28

   

500

     

624

 

Los Angeles, Ser A, GO

               

5.000%, 09/01/21

   

270

     

322

 

Los Angeles, Unified School District, Election of 2005, Ser E, GO, AGM

               

Pre-Refunded @ 100

               

5.000%, 07/01/17(B)

   

500

     

515

 

Los Angeles, Unified School District, Headquarters Building Project, Ser A, COP

               

5.000%, 10/01/20

   

1,000

     

1,154

 

Los Angeles, Unified School District, Ser A, GO

               

5.000%, 07/01/18

   

350

     

375

 

Los Angeles, Unified School District, Ser A, GO

               

Callable 07/01/25 @ 100

               

5.000%, 07/01/30

   

505

     

630

 

Los Angeles, Unified School District, Ser B, GO, AMBAC

               

Callable 07/01/17 @ 100

               

5.000%, 07/01/19

   

2,000

     

2,064

 

Merced, Irrigation District, Ser A, RB, AGM

               

5.000%, 10/01/20

   

500

     

574

 

North City, West School Facilities Financing Authority, Sub-Ser A, SPL Tax, AGM

               

5.000%, 09/01/20

   

1,000

     

1,144

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 30

 


 

schedule of investments

September 30, 2016

City National Rochdale California Tax Exempt Bond Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

Northern California, Power Agency, Hydroelectric Project Number 1, Ser C, RB, AGC

           

Callable 07/01/18 @ 100

           

5.000%, 07/01/20

 

$

500

   

$

534

 

Orange County, Redevelopment Agency Successor Agency, TA, AGM

               

5.000%, 09/01/23

   

320

     

394

 

Orange County, Sanitation District, Ser A, COP

               

3.000%, 02/01/17

   

500

     

504

 

Petaluma, Joint Unified High School District, Election of 2014, Ser A, GO

               

4.000%, 08/01/18

   

595

     

629

 

Port of Oakland, Ser B, RB, NATL

               

Callable 11/01/17 @ 100

               

5.000%, 11/01/23

   

500

     

523

 

Riverside County, Public Safety Communication, Ser A, COP, AMBAC

               

5.000%, 11/01/17

   

1,600

     

1,668

 

Riverside County, Transportation Commission, Ser A, RB

               

Callable 06/01/23 @ 100

               

5.250%, 06/01/28

   

500

     

625

 

Riverside, Public Financing Authority, Ser A, RB

               

5.000%, 11/01/21

   

1,000

     

1,181

 

Roseville, Finance Authority, RB

               

4.000%, 02/01/18

   

500

     

520

 

Sacramento County, Sanitation District Financing Authority, Sewer Revenue, Ser A, RB

               

5.000%, 12/01/20

   

500

     

581

 

Sacramento, Area Flood Control Agency, Ser A, SAB, NATL

               

Callable 10/01/17 @ 100

               

5.000%, 10/01/21

   

400

     

416

 

Sacramento, Financing Authority, EPA Building Project, Ser A, RB

               

4.000%, 05/01/18

   

850

     

891

 

San Diego, Public Facilities Financing Authority Sewer Revenue, RB

               

5.000%, 05/15/25

   

1,000

     

1,293

 

San Francisco City & County, Airports Commission, Ser B, RB

               

5.000%, 05/01/17

   

495

     

507

 

San Francisco City & County, Open Space Fund, Various Park Projects, RB, NATL

               

Callable 11/03/16 @ 100

               

3.750%, 07/01/18

 

 

500

   

 

501

 

San Francisco City & County, Public Utilities Commission Wastewater Revenue, Ser A, RB

               

Callable 10/01/25 @ 100

               

5.000%, 10/01/27

   

1,000

     

1,282

 

San Francisco City & County, Public Utilities Commission Water Revenue, Ser A, RB

               

5.000%, 11/01/20

   

250

     

291

 

San Francisco City & County, Redevelopment Agency, Redevelopment Projects, Ser B, TA

               

5.000%, 08/01/17

   

540

     

558

 

San Francisco City & County, Redevelopment Agency, Redevelopment Projects, Ser B, TA, NATL

               

Callable 11/03/16 @ 100

               

5.250%, 08/01/18

   

345

     

345

 

San Francisco, Bay Area Rapid Transit District, RB

               

Callable 07/01/26 @ 100

               

4.000%, 07/01/34

   

1,000

     

1,136

 

San Francisco, State Building Authority, RB

               

4.000%, 12/01/20

   

1,000

     

1,119

 

San Luis Obispo County, Financing Authority, Ser A, RB, BAM

               

Callable 09/01/25 @ 100

               

5.000%, 09/01/30

   

500

     

617

 

San Mateo County, Transportation Authority, Ser A, RB, NATL, ETM

               

5.250%, 06/01/19

   

755

     

841

 

San Pablo County, Redevelopment Agency, Ser A, TA, AGM

               

5.000%, 06/15/21

   

480

     

561

 

Santa Clara County, Financing Authority, Lease Revenue Capital Project, Ser A, RB

               

5.000%, 02/01/20

   

500

     

566

 

Santa Cruz County, Redevelopment Agency, TA, BAM

               

5.000%, 09/01/19

   

640

     

711

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 31

 


 

schedule of investments

September 30, 2016

City National Rochdale California Tax Exempt Bond Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

Santa Rosa, Wastewater Revenue, Ser A, RB

           

4.000%, 09/01/17

 

$

415

   

$

427

 

Southern California, Metropolitan Water District, Ser G-4, RB

               

Callable 07/01/19 @ 100

               

3.000%, 07/01/37(A)

   

1,000

     

1,048

 

Southern California, Public Power Authority, Linden Wind Energy Project, Ser A, RB

               

Callable 07/01/20 @ 100

               

5.000%, 07/01/27

   

1,065

     

1,215

 

Southern California, Public Power Authority, Subordinated Southern Transmission Project, Ser A, RB

               

5.000%, 07/01/17

   

1,375

     

1,418

 

Turlock, Irrigation District, Ser A, RB

               

5.000%, 01/01/17

   

575

     

581

 

Turlock, Irrigation District, Sub-Ser, RB

               

5.000%, 01/01/19

   

200

     

218

 

Tustin, Unified School District, SPL Tax, BAM

               

5.000%, 09/01/24

   

500

     

624

 

University of California, Regents Medical Center Pooled Revenue, Ser J, RB

               

Callable 05/15/23 @ 100

               

5.000%, 05/15/26

   

605

     

743

 

University of California, Revenues Limited Project, Ser E, RB

               

Callable 05/15/20 @ 100

               

5.000%, 05/15/22

   

500

     

571

 

University of California, Ser AT, RB

               

Callable 11/15/20 @ 100

               

1.400%, 05/15/46(A)

   

2,000

     

2,019

 

University of California, Ser G, RB

               

Callable 05/15/22 @ 100

               

5.000%, 05/15/26

   

500

     

606

 

Ventura County, Community College District, GO

               

Callable 08/01/21 @ 100

               

5.000%, 08/01/24

   

385

     

458

 
 
Description     Face Amount (000)/Shares       Value (000)  

Ventura County, Public Financing Authority, Ser A, RB

  $       $    

4.000%, 11/01/18

 

 

500

   

 

533

 

Ventura County, Public Financing Authority, Ser A, RB

               

5.000%, 11/01/19

   

500

     

563

 

Ventura County, Public Financing Authority, Ser B, RB

               

5.000%, 11/01/18

   

500

     

543

 

Walnut, Energy Center Authority, RB

               

5.000%, 01/01/19

   

300

     

327

 
                 

Total California

     

93,345

 
                 

Connecticut [1.0%]

 

Connecticut State, Ser A, GO

               

Callable 10/19/16 @ 100

               

2.190%, 03/01/19(A)

   

1,000

     

1,000

 
                 

Guam [0.5%]

 

Territory of Guam, Ser A, RB

               

5.000%, 01/01/17

   

500

     

504

 
                 

Total Municipal Bonds

 

(Cost $92,513)

     

94,849

 
                 

Affiliated Registered Investment Company [2.4%]

 

City National Rochdale Municipal High Income Fund, Cl N ‡

   

207,560

     

2,312

 
                 

Total Affiliated Registered Investment Company

 

(Cost $2,250)

     

2,312

 
                 

Short-Term Investment [1.4%]

 

City National Rochdale Government Money Market Fund, Cl I, 0.030%** ‡

   

1,330,599

     

1,331

 
                 

Total Short-Term Investment

 

(Cost $1,331)

     

1,331

 
                 

Total Investments [100.4%]

 

(Cost $96,094)

   

$

98,492

 

 

Percentages are based on Net Assets of $98,138 (000).

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 32

 


 

schedule of investments

September 30, 2016

City National Rochdale California Tax Exempt Bond Fund (concluded)

 

**

The rate reported is the 7-day effective yield as of September 30, 2016.

Investment in Affiliate.

(A)

Floating Rate Security — The rate reported is the rate in effect on September 30, 2016.

(B)

Pre-Refunded Security — The maturity date shown is the pre-refunded date.

(C)

Securities are held in conjunction with a letter of credit from a major bank or financial institution.

(D)

Represents an investment in a tender option bond residual interest certificate purchased in a secondary market transaction. The interest rate shown bears an inverse relationship to the interest rate on a tender option bond floating rate certificate. The interest rate disclosed reflects the rate in effect on September 30, 2016.

(E)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally to qualified institutions. On September 30, 2016, the value of these securities amounted to $1,000 (000), representing 1.0% of the net assets of the Fund.

 

AGC — Assured Guaranty Corporation

AGM— Assured Guaranty Municipal

AMBAC — American Municipal Bond Assurance Corporation

BAM — Build America Mutual

Cl — Class

COP— Certificate of Participation

ETM — Escrowed to Maturity

GO — General Obligation

NATL— National Public Finance Guarantee Corporation

RB — Revenue Bond

SAB— Special Assessment Bond

Ser — Series

SPL Tax — Special Tax

TA — Tax Allocation

 

The following is a list of the inputs used as of September 30, 2016 in valuing the Fund’s investments carried at value (000):

 

Investments in Securities

 

Level 1

   

Level 2

   

Level 3

   

Total

 

Municipal Bonds

 

$

   

$

94,849

   

$

   

$

94,849

 

Affiliated Registered Investment Company

   

2,312

     

     

     

2,312

 

Short-Term Investment

   

1,331

     

     

     

1,331

 

Total Investments in Securities

 

$

3,643

   

$

94,849

   

$

   

$

98,492

 

 

For the year ended September 30, 2016, there have been no transfers between any of the fair value hierarchy levels. Transfers between Levels are recognized at period end.

 

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements. 0

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 33

 


 

schedule of investments

September 30, 2016

City National Rochdale Municipal High Income Fund

 


Description

 

Face Amount (000)

   

Value (000)

 

Municipal Bonds [97.5%]

 

Alabama [2.6%]

 

Birmingham, Water Works Board, Ser A, RB

           

Callable 01/01/25 @ 100

           

5.000%, 01/01/42

 

$

5,000

   

$

5,872

 

Cullman County, Health Care Authority, Cullman Regional Medical Center Project, Ser A, RB

               

Callable 02/01/19 @ 100

               

7.000%, 02/01/36

   

4,315

     

4,682

 

Jefferson County, Sewer Revenue, Ser D, RB

               

Callable 10/01/23 @ 105

               

6.000%, 10/01/42

   

4,000

     

4,848

 

Jefferson County, Sewer Revenue, Ser D, RB

               

Callable 10/01/23 @ 105

               

6.500%, 10/01/53

   

4,000

     

5,021

 

Lower Alabama Gas District, Ser A, RB

               

5.000%, 09/01/46

   

5,000

     

6,700

 
                 

Total Alabama

     

27,123

 
                 

Alaska [0.6%]

 

Northern Tobacco Securitization, Ser A, RB

               

Callable 10/19/16 @ 100

               

5.000%, 06/01/46

   

6,000

     

5,872

 
                 

American Samoa [0.5%]

 

American Samoa Economic Development Authority, Ser A, RB

               

Callable 09/01/25 @ 100

               

6.625%, 09/01/35

 

 

5,000

   

 

5,178

 
                 

Arizona [1.1%]

 

Glendale, Industrial Development Authority

               

4.250%, 11/15/26

   

500

     

499

 

Glendale, Industrial Development Authority

               

Callable 11/15/26 @ 100

               

5.000%, 11/15/36

   

600

     

606

 

Glendale, Industrial Development Authority

               

Callable 11/15/26 @ 100

               

5.250%, 11/15/46

   

1,000

     

1,018

 

Glendale, Industrial Development Authority

               

Callable 11/15/26 @ 100

               

5.250%, 11/15/51

   

750

     

758

 

Phoenix, Industrial Development Authority, RB

               

5.750%, 07/01/24(A)

   

1,400

     

1,608

 

Phoenix, Industrial Development Authority, Legacy Traditional School Projects, RB

               

Callable 07/01/25 @ 100

               

5.000%, 07/01/45(A)

   

3,300

     

3,457

 

Pima County, Industrial Development Authority, Noah Webster School Project, RB

               

Callable 12/15/23 @ 100

               

7.000%, 12/15/43

   

1,500

     

1,715

 

Yavapai County, Industrial Development Authority, Ser A, RB

               

Callable 03/01/25 @ 100

               

5.000%, 09/01/34(A)

   

2,015

     

2,102

 
                 

Total Arizona

     

11,763

 
                 

California [12.9%]

 

Adelanto, Public Utility Authority, Utility System Project, Ser A, RB

               

Callable 07/01/19 @ 100

               

6.750%, 07/01/39

   

6,500

     

7,354

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 34

 


 

schedule of investments

September 30, 2016

City National Rochdale Municipal High Income Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

California State, Educational Facilities Authority, Ser T-1

           

5.000%, 03/15/39

 

$

4,500

   

$

6,299

 

California State, GO

               

Callable 12/01/23 @ 100

               

5.000%, 12/01/31

   

1,500

     

1,849

 

California State, GO

               

Callable 09/01/26 @ 100

               

5.000%, 09/01/45

   

8,000

     

9,832

 

California State, Municipal Finance Authority, Ser A, RB

               

Callable 11/01/25 @ 100

               

5.500%, 11/01/45(A)

   

4,000

     

4,411

 

California State, Pollution Control Financing Authority, San Diego Water Project, RB

               

Callable 07/01/17 @ 100

               

5.000%, 11/21/45(A)

   

2,000

     

2,056

 

California State, Public Works Board, Department of Corrections and Rehab Project, Ser A, RB

               

Callable 09/01/24 @ 100

               

5.000%, 09/01/31

   

5,000

     

6,129

 

California State, Public Works Board, Various Capital Projects, Ser A, RB

               

Callable 04/01/22 @ 100

               

5.000%, 04/01/37

   

1,000

     

1,163

 

California State, School Finance Authority, View Park Elementary & Middle School Project, Ser A, RB

               

Callable 10/01/24 @ 100

               

5.625%, 10/01/34

   

575

     

639

 

California State, School Finance Authority, View Park Elementary & Middle School Project, Ser A, RB

               

Callable 10/01/24 @ 100

               

5.875%, 10/01/44

   

1,000

     

1,118

 

California State, School Finance Authority, View Park Elementary & Middle School Project, Ser A, RB

               

Callable 10/01/24 @ 100

               

6.000%, 10/01/49

   

720

     

808

 

California Statewide Communities Development Authority, RB

               

Callable 06/01/25 @ 100

               

7.000%, 06/01/45

   

3,155

     

2,831

 

California Statewide Communities Development Authority, Ser A, RB

               

Callable 06/01/26 @ 100

               

5.250%, 12/01/56(A)

 

 

11,500

   

 

13,126

 

El Camino Hospital District, NATL

               

2.386%, 08/01/28(B)

   

9,390

     

7,115

 

Golden State Tobacco Securitization, Golden State Tobacco Settlement, Ser A-1, RB

               

Callable 06/01/17 @ 100

               

4.500%, 06/01/27

   

4,655

     

4,730

 

Golden State Tobacco Securitization, Golden State Tobacco Settlement, Ser A-1, RB

               

Callable 06/01/17 @ 100

               

5.750%, 06/01/47

   

5,000

     

5,073

 

Golden State Tobacco Securitization, Golden State Tobacco Settlement, Ser A-1, RB

               

Callable 06/01/17 @ 100

               

5.125%, 06/01/47

   

7,280

     

7,263

 

Golden State Tobacco Securitization, Sub-Ser B, RB

               

Callable 06/01/17 @ 17

               

9.653%, 06/01/47(B)

   

75,000

     

8,060

 

Inland Empire Tobacco Securitization Authority, RB

               

Callable 06/01/17 @ 29

               

0.000%, 06/01/36(B)

   

25,000

     

6,780

 

Lake Elsinore, Public Financing Authority, SAB

               

Callable 09/01/25 @ 100

               

5.000%, 09/01/35

   

2,650

     

3,104

 

Los Angeles County, Tobacco Securitization Agency, RB

               

Callable 12/01/18 @ 100

               

5.700%, 06/01/46

   

3,000

     

3,053

 

M-S-R Energy Authority, Ser C, RB

               

7.000%, 11/01/34

   

2,500

     

3,712

 

Northern California Gas Authority No. 1, Ser B

               

1.287%, 07/01/27(C)

   

5,000

     

4,708

 

Palomar Pomerado Health Care District, COP

               

Callable 11/01/20 @ 100

               

6.000%, 11/01/30

   

3,920

     

4,252

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 35

 


 

schedule of investments

September 30, 2016

City National Rochdale Municipal High Income Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

San Buenaventura, Community Memorial Health System Project, RB

           

Callable 12/01/21 @ 100

           

7.000%, 12/01/26

 

$

1,000

   

$

1,197

 

San Buenaventura, Community Memorial Health System Project, RB

               

Callable 12/01/21 @ 100

               

7.500%, 12/01/41

   

1,000

     

1,209

 

San Mateo, Community Facilities District, SAB

               

Callable 09/01/22 @ 100

               

5.500%, 09/01/44

   

1,000

     

1,120

 

San Mateo, Foster City School District, GO

               

Callable 08/01/31 @ 100

               

6.625%, 08/01/26(D)

   

6,000

     

5,467

 

Southern California, Public Power Authority, Ser A

               

1.977%, 11/01/38(C)

   

2,500

     

2,278

 

Southern California, Tobacco Securitization Authority, Ser A-1, RB

               

Callable 10/19/16 @ 100

               

5.000%, 06/01/37

   

3,000

     

3,000

 

Southern California, Tobacco Securitization Authority, Ser A1-SNR, RB

               

Callable 10/19/16 @ 100

               

5.125%, 06/01/46

   

4,000

     

4,000

 
                 

Total California

     

133,736

 
                 

Colorado [6.7%]

 

Arkansas State River Power Authority, Colorado Improvement Project, RB

               

Callable 10/01/20 @ 100

               

6.125%, 10/01/40

   

2,500

     

2,795

 

Arkansas State River Power Authority, Colorado Improvement Project, RB

               

Callable 10/01/18 @ 100

               

6.000%, 10/01/40

   

2,925

     

3,057

 

Castle Oaks Metropolitan District No. 3, GO

               

Callable 12/01/20 @ 103

               

6.250%, 12/01/44

   

2,860

     

3,125

 

Castle Oaks Metropolitan District No. 3, GO

               

Callable 12/01/20 @ 103

               

5.500%, 12/01/45

   

2,345

     

2,433

 

Colorado State, Educational & Cultural Facilities Authority, Charter School Preparatory School Project, RB

               

Callable 04/01/25 @ 100

               

5.125%, 04/01/35(A)

 

 

1,515

   

 

1,547

 

Colorado State, Educational & Cultural Facilities Authority, Charter School Preparatory School Project, RB

               

Callable 04/01/25 @ 100

               

5.250%, 04/01/45(A)

   

2,655

     

2,711

 

Colorado State, Educational & Cultural Facilities Authority, Charter School Project, RB

               

Callable 07/01/25 @ 100

               

5.000%, 07/01/36(A)

   

915

     

953

 

Colorado State, Educational & Cultural Facilities Authority, Charter School Project, RB

               

Callable 07/01/25 @ 100

               

5.250%, 07/01/46(A)

   

1,930

     

2,009

 

Colorado State, Educational & Cultural Facilities Authority, Charter School Skyview Project, RB

               

Callable 07/01/24 @ 100

               

5.375%, 07/01/44(A)

   

1,350

     

1,452

 

Colorado State, Educational & Cultural Facilities Authority, Charter School Skyview Project, RB

               

Callable 07/01/24 @ 100

               

5.500%, 07/01/49(A)

   

1,600

     

1,718

 

Colorado State, Health Facilities Authority

               

Callable 01/01/24 @ 102

               

5.000%, 01/01/37

   

1,600

     

1,790

 

Colorado State, Health Facilities Authority, RB

               

Callable 05/15/26 @ 100

               

4.000%, 11/15/46

   

10,000

     

10,795

 

Colorado State, High Performance Transportation Enterprise, U.S. 36 & I-25 Managed Lanes Project, RB, AMT

               

Callable 01/01/23 @ 100

               

5.750%, 01/01/44

   

2,000

     

2,172

 

Colorado State, Public Energy Authority, RB

               

6.500%, 11/15/38

   

4,000

     

5,829

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 36

 


 

schedule of investments

September 30, 2016

City National Rochdale Municipal High Income Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

Denver City & County, United Airlines Project, Ser A, RB, AMT

           

Callable 10/01/17 @ 100

           

5.250%, 10/01/32

 

$

1,000

   

$

1,030

 

Erie Highlands Metropolitan District No. 1, GO

               

Callable 12/01/20 @ 103

               

5.750%, 12/01/45

   

2,000

     

2,056

 

Flatiron Meadows Metropolitan District, GO

               

Callable 12/01/21 @ 103

               

5.125%, 12/01/46

   

2,000

     

2,043

 

Great Western Park Metropolitan District No. 2, Ser A

               

Callable 12/01/21 @ 100

               

5.000%, 12/01/46

   

1,825

     

1,873

 

Green Gables Metropolitan District No. 1, Ser A, GO

               

Callable 12/01/21 @ 103

               

5.300%, 12/01/46

   

1,250

     

1,273

 

Lewis Pointe Metropolitan District, Ser A, GO

               

Callable 12/01/20 @ 100

               

6.000%, 12/01/44

   

2,590

     

2,634

 

Leyden Rock Metropolitan District No. 10, Ser A

               

Callable 12/01/21 @ 103

               

4.375%, 12/01/33

   

750

     

741

 

Leyden Rock Metropolitan District No. 10, Ser A

               

Callable 12/01/21 @ 103

               

5.000%, 12/01/45

   

1,250

     

1,271

 

Morgan Stanley & Co., Tender Option Bond Trust Receipts, Ser 2016-XM0203, RB

               

Callable 08/01/26 @ 100

               

9.097%, 08/01/46(A) (C) (E)

   

3,335

     

4,272

 

Overlook Metropolitan District, GO

               

Callable 12/01/21 @ 103

               

5.500%, 12/01/46

   

1,230

     

1,239

 

Regional Transportation District, Denver Transportation Partners Project, RB

               

Callable 07/15/20 @ 100

               

6.000%, 01/15/41

   

1,000

     

1,144

 

Sierra Ridge Metropolitan District No. 2, Ser A, GO

               

Callable 12/01/21 @ 103

               

5.500%, 12/01/46

   

1,500

     

1,588

 

Southglenn Metropolitan District

               

Callable 12/01/21 @ 103

               

3.500%, 12/01/26

 

 

1,000

   

 

986

 

Southglenn Metropolitan District

               

Callable 12/01/21 @ 103

               

5.000%, 12/01/46

   

2,100

     

2,181

 

Water Valley Metropolitan District No. 01, GO

               

Callable 12/01/26 @ 100

               

4.000%, 12/01/33

   

375

     

384

 

Water Valley Metropolitan District No. 01, GO

               

Callable 12/01/26 @ 100

               

5.000%, 12/01/35

   

100

     

110

 

Water Valley Metropolitan District No. 01, GO

               

Callable 12/01/26 @ 100

               

5.250%, 12/01/40

   

300

     

335

 

Water Valley Metropolitan District No. 02, GO

               

Callable 12/01/26 @ 100

               

4.000%, 12/01/33

   

250

     

256

 

Water Valley Metropolitan District No. 02, GO

               

Callable 12/01/26 @ 100

               

5.250%, 12/01/40

   

575

     

650

 

Wildgrass County, Metropolitan District, GO

               

Pre-Refunded @ 100

               

6.200%, 12/01/16(F)

   

1,000

     

1,008

 
                 

Total Colorado

     

69,460

 
                 

Connecticut [1.2%]

 

Connecticut State, Health & Educational Facility Authority, RB

               

Callable 06/01/26 @ 100

               

5.000%, 12/01/45

   

10,000

     

11,952

 
                 

Delaware [0.7%]

 

Delaware State, Economic Development Authority, Indian River Power Project, RB

               

Callable 10/01/20 @ 100

               

5.375%, 10/01/45

   

6,500

     

7,102

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 37

 


 

schedule of investments

September 30, 2016

City National Rochdale Municipal High Income Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

District of Columbia [0.2%]

 

Metropolitan Washington, Airports Authority, Dulles Toll Road Revenue, Ser B, RB

           

Callable 10/01/28 @ 100

           

0.000%, 10/01/44(D)

 

$

2,000

   

$

2,444

 
                 

Florida [5.7%]

 

Alachua County, Health Facilities Authority, East Ridge Retirement Village Project, RB

               

Callable 11/15/24 @ 100

               

6.000%, 11/15/34

   

2,500

     

2,834

 

Alachua County, Health Facilities Authority, East Ridge Retirement Village Project, RB

               

Callable 11/15/24 @ 100

               

6.250%, 11/15/44

   

1,000

     

1,145

 

Brevard County, Industrial Development Authority, TUFF Florida Tech Project, RB

               

Callable 11/01/19 @ 100

               

6.750%, 11/01/39

   

960

     

1,051

 

Capital Trust Agency, RB

               

Callable 11/03/16 @ 100

               

7.000%, 01/01/19(D)

   

815

     

810

 

Capital Trust Agency, RB

               

Callable 11/03/16 @ 100

               

5.750%, 01/01/50

   

945

     

914

 

Capital Trust Agency, Silver Creek Street Project, Ser A, RB

               

Callable 01/01/21 @ 103

               

8.250%, 01/01/44

   

3,390

     

2,865

 

Capital Trust Agency, Silver Creek Street Project, Ser A, RB

               

Callable 01/01/21 @ 103

               

8.250%, 01/01/49

   

1,000

     

840

 

Florida State, Development Finance, RB

               

Callable 06/15/25 @ 100

               

6.125%, 06/15/46(A)

   

5,000

     

5,287

 

Florida State, Development Finance, Renaissance Charter School Project, Ser A, RB

               

Callable 06/15/24 @ 100

               

6.000%, 06/15/34

   

2,110

     

2,261

 

Florida State, Development Finance, Renaissance Charter School Project, Ser A, RB

               

Callable 06/15/22 @ 100

               

6.125%, 06/15/43

 

 

1,000

   

 

1,078

 

Florida State, Development Finance, Renaissance Charter School Project, Ser A, RB

               

Callable 06/15/24 @ 100

               

6.125%, 06/15/44

   

3,000

     

3,120

 

Florida State, Development Finance, Tuscan Isle Senior Living Community Project, Ser A, RB

               

Callable 06/01/22 @ 103

               

7.000%, 06/01/35(A)

   

1,350

     

1,463

 

Florida State, Development Finance, Tuscan Isle Senior Living Community Project, Ser A, RB

               

Callable 06/01/22 @ 103

               

7.000%, 06/01/45(A)

   

3,000

     

3,236

 

Florida State, Village Community Development District No. 10, SAB

               

Callable 05/01/23 @ 100

               

6.000%, 05/01/44

   

1,000

     

1,195

 

Miami-Dade County, Industrial Development Authority, Pinecrest Academy Project, RB

               

Callable 09/15/24 @ 100

               

5.250%, 09/15/44

   

4,300

     

4,687

 

Miami-Dade County, Industrial Development Authority, Youth CO-OP Charter Schools Project, Ser A, RB

               

Callable 09/15/25 @ 100

               

5.750%, 09/15/35(A)

   

1,605

     

1,671

 

Mid-Bay Bridge Authority, Ser A, RB

               

Pre-Refunded @ 100

               

7.250%, 10/01/21(F)

   

5,200

     

6,734

 

Mid-Bay Bridge Authority, Ser A, RB

               

Callable 10/01/25 @ 100

               

5.000%, 10/01/35

   

5,000

     

5,996

 

Osceola County, Poinciana Parkway Project, Ser A, RB

               

Callable 10/01/24 @ 100

               

5.375%, 10/01/47

   

5,000

     

5,527

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 38

 


 

schedule of investments

September 30, 2016

City National Rochdale Municipal High Income Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

Palm Beach County, Health Facilities Authority, Sinai Residences Project, Ser A, RB

           

Callable 06/01/22 @ 102

           

7.250%, 06/01/34

 

$

500

   

$

607

 

Palm Beach County, Health Facilities Authority, Sinai Residences Project, Ser A, RB

               

Callable 06/01/22 @ 102

               

7.500%, 06/01/49

   

2,000

     

2,448

 

Saint Johns County, Industrial Development Authority, Presbyterian Retirement Project, Ser A, RB

               

Callable 08/01/20 @ 100

               

6.000%, 08/01/45

   

3,000

     

3,375

 
                 

Total Florida

     

59,144

 
                 

Georgia [0.8%]

 

Atlanta, Department of Aviation, Ser A, RB

               

Callable 01/01/24 @ 100

               

5.000%, 01/01/31

   

2,500

     

3,009

 

DeKalb County, Hospital Authority, Dekalb Medical Center Project, RB

               

Callable 09/01/20 @ 100

               

6.125%, 09/01/40

   

1,000

     

1,129

 

Greene County, Development Authority, GLEN-I, LLC Project, Ser A, RB

               

Callable 01/01/25 @ 100

               

7.250%, 01/01/46(A)

   

3,400

     

3,571

 

Savannah, Economic Development Authority, Marshes Skidaway Island Project, RB

               

Callable 01/01/24 @ 100

               

7.250%, 01/01/49

   

810

     

926

 
                 

Total Georgia

     

8,635

 
                 

Guam [0.9%]

 

Territory of Guam, Government Waterworks Authority, RB

               

Callable 07/01/20 @ 100

               

5.625%, 07/01/40

   

2,000

     

2,199

 

Territory of Guam, Ser A, GO

               

Pre-Refunded @ 100

               

7.000%, 11/15/19(F)

   

6,000

     

7,106

 
                 

Total Guam

     

9,305

 
                 

Hawaii [0.3%]

 

Hawaii State, Department of Budget & Finance, 15 Craigside Project, Ser A, RB

               

Callable 11/15/19 @ 100

               

8.750%, 11/15/29

 

 

2,340

   

 

2,855

 
                 

Illinois [8.3%]

 

Bridgeview Village, Ser A, GO

               

Callable 06/01/24 @ 100

               

5.500%, 12/01/43

   

4,880

     

5,074

 

Chicago, Midway International Airport, Ser B, RB

               

Callable 01/01/24 @ 100

               

5.000%, 01/01/35

   

3,000

     

3,474

 

Chicago, Midway International Airport, Ser B, RB

               

Callable 01/01/23 @ 100

               

5.000%, 01/01/35

   

2,000

     

2,283

 

Chicago, O’Hare International Airport, Ser B, RB

               

Callable 01/01/25 @ 100

               

5.000%, 01/01/33

   

2,500

     

2,967

 

Chicago, Refunding Project, Ser A, GO, AGM

               

Callable 01/01/24 @ 100

               

5.250%, 01/01/31

   

1,000

     

1,099

 

Chicago, Waterworks Revenue, RB

               

Callable 11/01/26 @ 100

               

5.000%, 11/01/29

   

1,000

     

1,194

 

Chicago, Waterworks Revenue, Ser A-1, RB

               

Callable 11/01/26 @ 100

               

5.000%, 11/01/28

   

1,000

     

1,199

 

Chicago, Waterworks Revenue, Ser A-1, RB

               

Callable 11/01/26 @ 100

               

5.000%, 11/01/30

   

1,025

     

1,222

 

Cook County, Ser A, GO

               

Callable 11/15/26 @ 100

               

5.000%, 11/15/29

   

1,770

     

2,109

 

Cook County, Ser A, GO

               

Callable 11/15/26 @ 100

               

5.000%, 11/15/30

   

1,000

     

1,188

 

Illinois State, Finance Authority, Admiral at Lake Project, Ser A, RB

               

Callable 05/15/20 @ 100

               

8.000%, 05/15/40

   

4,000

     

4,638

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 39

 


 

schedule of investments

September 30, 2016

City National Rochdale Municipal High Income Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

Illinois State, Finance Authority, Admiral at Lake Project, Ser A, RB

           

Callable 05/15/20 @ 100

           

8.000%, 05/15/46

 

$

2,825

   

$

3,269

 

Illinois State, Finance Authority, RB

               

Callable 06/01/26 @ 100

               

5.000%, 12/01/46

   

5,000

     

5,729

 

Illinois State, Finance Authority, Lutheran Home and Services Project, RB

               

Callable 05/15/22 @ 100

               

5.625%, 05/15/42

   

5,000

     

5,327

 

Illinois State, Finance Authority, Roosevelt University Project, RB

               

Callable 10/01/19 @ 100

               

6.250%, 04/01/29

   

1,000

     

1,095

 

Illinois State, Finance Authority, Roosevelt University Project, RB

               

Callable 10/01/19 @ 100

               

6.500%, 04/01/39

   

3,445

     

3,807

 

Illinois State, Finance Authority, Ser C

               

Callable 02/15/27 @ 100

               

3.625%, 02/15/32

   

3,500

     

3,370

 

Illinois State, Finance Authority, Ser C

               

Callable 02/15/27 @ 100

               

3.750%, 02/15/34

   

3,480

     

3,351

 

Illinois State, Finance Authority, Ser C

               

Callable 02/15/27 @ 100

               

5.000%, 02/15/41

   

3,200

     

3,587

 

Illinois State, Finance Authority, Ser C

               

Callable 02/15/27 @ 100

               

4.000%, 02/15/41

   

4,500

     

4,465

 

Illinois State, Finance Authority, Ser S, RB

               

Callable 12/01/25 @ 100

               

4.125%, 12/01/30

   

1,505

     

1,568

 

Illinois State, Finance Authority, Three Crowns Park Plaza Project, Ser A, RB

               

Callable 11/03/16 @ 100

               

5.875%, 02/15/38

   

6,750

     

6,758

 

Illinois State, Housing Development Authority, Ser A

               

Callable 01/01/26 @ 100

               

5.450%, 01/01/46

   

2,500

     

2,475

 

Illinois State, Housing Development Authority, Ser A

               

Callable 01/01/26 @ 100

               

5.600%, 01/01/56

 

 

2,700

   

 

2,671

 

Metropolitan Pier & Exposition Authority, Ser A, NATL

               

0.000%, 06/15/31(B)

   

10,000

     

5,645

 

Southern Illinois University, Ser B, RB

               

Callable 10/01/22 @ 100

               

5.000%, 04/01/26

   

2,105

     

2,228

 

Southwestern Illinois, Development Authority, Collinsville Project, RB

               

Callable 11/03/16 @ 100

               

5.350%, 03/01/31

   

75

     

58

 

University of Illinois, Ser B, COP

               

Callable 10/01/26 @ 100

               

5.000%, 10/01/27

   

1,500

     

1,845

 

Village of Bridgeview, Cook County, Ser A, GO

               

Callable 12/01/25 @ 100

               

5.750%, 12/01/35

   

2,000

     

2,165

 
                 

Total Illinois

     

85,860

 
                 

Indiana [1.2%]

 

Carmel City, Barrington Carmel Project, Ser A, RB

               

Callable 11/15/22 @ 100

               

7.000%, 11/15/32

   

1,650

     

1,887

 

Carmel City, Barrington Carmel Project, Ser A, RB

               

Callable 11/15/22 @ 100

               

7.125%, 11/15/47

   

3,000

     

3,398

 

Indiana State, Finance Authority, Ohio Valley Electric Corporation Project, Ser A, RB

               

Callable 06/01/22 @ 100

               

5.000%, 06/01/39

   

1,000

     

1,059

 

Indianapolis, Ritter Affordable Assisted Living Project, RB

               

Callable 12/01/22 @ 102

               

6.900%, 12/01/33

   

4,000

     

4,082

 

Terre Haute, Westminster Village Project, RB

               

Callable 08/01/22 @ 100

               

6.000%, 08/01/39

   

2,355

     

2,405

 
                 

Total Indiana

     

12,831

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 40

 


 

schedule of investments

September 30, 2016

City National Rochdale Municipal High Income Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

Iowa [0.2%]

 

Iowa State, Finance Authority, Ser B, RB

           

Callable 06/01/25 @ 100

           

5.000%, 06/01/36

 

$

2,000

   

$

2,039

 
                 

Kansas [0.7%]

 

Arkansas City, Public Building Commission, South Central Regional Medical Center, RB

               

Callable 09/01/19 @ 100

               

7.000%, 09/01/29

   

2,550

     

2,520

 

Wichita, Ser II-A, RB

               

Callable 12/01/26 @ 100

               

5.250%, 12/01/36

   

500

     

532

 

Wichita, Ser II-A, RB

               

Callable 12/01/26 @ 100

               

5.375%, 12/01/46

   

1,500

     

1,600

 

Wyandotte County-Kansas City Unified Government, RB

               

Callable 09/01/25 @ 100

               

5.750%, 09/01/32

   

2,000

     

2,063

 
                 

Total Kansas

     

6,715

 
                 

Kentucky [1.1%]

 

Kentucky State, Economic Development Finance Authority, Owensboro Medical Health System Project, Ser A, RB

               

Callable 06/01/20 @ 100

               

6.375%, 06/01/40

   

1,000

     

1,144

 

Kentucky State, Economic Development Finance Authority, Owensboro Medical Health System Project, Ser A, RB

               

Callable 06/01/20 @ 100

               

6.500%, 03/01/45

   

2,960

     

3,393

 

Kentucky State, Public Transportation Infrastructure Authority, Downtown Crossing Project, Ser A, RB

               

Callable 07/01/23 @ 100

               

5.750%, 07/01/49

   

5,650

     

6,701

 
                 

Total Kentucky

     

11,238

 
                 

Louisiana [1.3%]

 

Juban Crossing Economic Development District, General Infrastructure Project, Ser C, RB

               

Callable 03/15/25 @ 100

               

7.000%, 09/15/44(A)

 

 

5,665

   

 

6,102

 

Louisiana State, Local Government Environmental Facilities & Community Development Authority, Ser S, RB

               

Callable 06/01/25 @ 100

               

5.625%, 06/01/45

   

2,000

     

2,063

 

Louisiana State, Public Facilities Authority, Pellets Inc. Project, RB, AMT

               

7.000%, 07/01/24(A) (G)

   

2,000

     

1,155

 

Louisiana State, Public Facilities Authority, Pellets Inc. Project, RB, AMT

               

Callable 07/01/23 @ 100

               

10.500%, 07/01/39(G)

   

2,000

     

1,155

 

Louisiana State, Public Facilities Authority, Pellets Inc. Project, Ser A, RB, AMT

               

Callable 07/01/24 @ 100

               

8.375%, 07/01/39(G)

   

5,000

     

2,887

 
                 

Total Louisiana

     

13,362

 
                 

Maryland [1.1%]

 

Howard County, Annapolis Junction Town Center Project, TA

               

Callable 02/15/24 @ 100

               

5.800%, 02/15/34

   

725

     

779

 

Howard County, Annapolis Junction Town Center Project, TA

               

Callable 02/15/24 @ 100

               

6.100%, 02/15/44

   

1,425

     

1,530

 

Maryland State, Economic Development, RB

               

Callable 09/01/20 @ 100

               

5.750%, 09/01/25

   

3,000

     

3,060

 

Westminster, Luther Village Millers Grant Inc. Project, RB

               

Callable 07/01/24 @ 100

               

6.000%, 07/01/34

   

1,205

     

1,337

 

Westminster, Luther Village Millers Grant Inc. Project, RB

               

Callable 07/01/24 @ 100

               

6.125%, 07/01/39

   

750

     

830

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 41

 


 

schedule of investments

September 30, 2016

City National Rochdale Municipal High Income Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

Westminster, Luther Village Millers Grant Inc. Project, RB

           

Callable 07/01/24 @ 100

           

6.250%, 07/01/44

 

$

3,780

   

$

4,187

 
                 

Total Maryland

     

11,723

 
                 

Massachusetts [2.5%]

 

Massachusetts State, Development Finance Agency, RB

               

Callable 07/01/26 @ 100

               

5.000%, 07/01/41

   

4,710

     

5,654

 

Massachusetts State, Development Finance Agency, RB

               

Callable 07/01/26 @ 100

               

4.000%, 07/01/41

   

3,165

     

3,467

 

Massachusetts State, Development Finance Agency, Ser A, RB

               

Callable 10/01/26 @ 100

               

5.000%, 10/01/43

   

5,000

     

5,797

 

Massachusetts State, Ser E

               

Callable 04/01/25 @ 100

               

4.000%, 04/01/42

   

10,000

     

10,948

 
                 

Total Massachusetts

     

25,866

 
                 

Michigan [2.3%]

 

Kent, Hospital Finance Authority, Metropolitan Hospital Project, Ser A, RB

               

Callable 11/03/16 @ 100

               

6.000%, 07/01/35

   

4,805

     

4,820

 

Kent, Hospital Finance Authority, Ser A, RB

               

Callable 11/03/16 @ 100

               

6.250%, 07/01/40

   

1,500

     

1,504

 

Michigan State, Finance Authority

               

Callable 02/01/20 @ 101

               

5.750%, 02/01/33

   

4,000

     

4,151

 

Michigan State, Finance Authority, RB

               

Callable 11/15/25 @ 100

               

5.250%, 11/15/35

   

2,340

     

2,601

 

Michigan State, Finance Authority, Old Redford School Project, Ser A, RB

               

Callable 12/01/20 @ 100

               

6.500%, 12/01/40

   

3,745

     

3,864

 

Michigan State, Public Educational Facilities Authority, Old Redford Project, Ser A, RB

               

Callable 11/03/16 @ 100

               

5.875%, 12/01/30

 

 

2,000

   

 

2,001

 

Michigan State, Tobacco Settlement Finance Authority, Ser A, RB

               

Callable 06/01/17 @ 100

               

5.125%, 06/01/22

   

2,885

     

2,881

 

Michigan State, Tobacco Settlement Finance Authority, Turbo Project, Ser A, RB

               

Callable 06/01/18 @ 100

               

6.875%, 06/01/42

   

2,000

     

2,070

 
                 

Total Michigan

     

23,892

 
                 

Minnesota [0.3%]

 

Dakota County Community Development Agency

               

Callable 08/01/22 @ 100

               

5.000%, 08/01/46(A)

   

2,000

     

2,062

 

Dakota County Community Development Agency

               

Callable 08/01/22 @ 100

               

5.000%, 08/01/51(A)

   

1,250

     

1,278

 
                 

Total Minnesota

     

3,340

 
                 

Missouri [2.8%]

 

Blue Springs, Improvement Adams Farm Project, Ser A, SPL Tax

               

Callable 06/01/24 @ 100

               

5.250%, 06/01/39

   

3,400

     

3,497

 

Hanley, Eager Road Transportation Development District, Ser A, SAB

               

Callable 03/01/21 @ 100

               

3.000%, 03/01/26

   

500

     

498

 

Hanley, Eager Road Transportation Development District, Ser A, SAB

               

Callable 03/01/21 @ 100

               

3.625%, 03/01/33

   

500

     

497

 

Hanley, Eager Road Transportation Development District, Ser A, SAB

               

Callable 03/01/21 @ 100

               

4.000%, 03/01/42

   

1,000

     

992

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 42

 


 

schedule of investments

September 30, 2016

City National Rochdale Municipal High Income Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

Kansas City, Industrial Development Authority, Ser A, RB

           

Callable 04/01/26 @ 100

           

5.000%, 04/01/36(A)

 

$

1,000

   

$

1,013

 

Kansas City, Industrial Development Authority, Ser A, RB

               

Callable 04/01/26 @ 100

               

5.000%, 04/01/46(A)

   

1,150

     

1,136

 

Kirkwood, Industrial Development Authority, Aberdeen Heights Project, Ser A, RB

               

Callable 05/15/20 @ 100

               

8.250%, 05/15/45

   

3,000

     

3,369

 

Poplar Bluff, Ser A, SPL Tax

               

Callable 11/01/23 @ 100

               

5.125%, 11/01/35(A)

   

5,000

     

5,139

 

St. Joseph, Industrial Development Authority, Living Community Saint Joseph Project, RB

               

Callable 11/03/16 @ 100

               

7.000%, 08/15/32

   

1,000

     

1,000

 

St. Louis County, Industrial Development Authority

               

Callable 11/15/25 @ 100

               

4.000%, 11/15/36

   

1,250

     

1,228

 

St. Louis County, Industrial Development Authority

               

Callable 11/15/25 @ 100

               

5.000%, 11/15/41

   

1,250

     

1,354

 

St. Louis County, Industrial Development Authority

               

Callable 11/15/25 @ 100

               

5.000%, 11/15/46

   

1,500

     

1,618

 

St. Louis County, Industrial Development Authority, RB

               

Callable 09/01/24 @ 100

               

5.000%, 09/01/38(A)

   

2,000

     

2,066

 

St. Louis County, Industrial Development Authority, RB

               

Callable 09/01/24 @ 100

               

5.250%, 09/01/45(A)

   

3,000

     

3,096

 

St. Louis County, Lambert Airport Project, SAB

               

Pre-Refunded @ 105

               

9.000%, 11/01/16(F)

   

2,500

     

2,640

 
                 

Total Missouri

     

29,143

 
                 

Nebraska [0.7%]

 

Central Plains Energy Project, Project No. 3, RB

               

Callable 09/01/22 @ 100

               

5.250%, 09/01/37

 

 

1,000

   

 

1,152

 

Central Plains Energy Project, Project No. 3, RB

               

Callable 09/01/22 @ 100

               

5.000%, 09/01/42

   

5,500

     

6,241

 
                 

Total Nebraska

     

7,393

 
                 

Nevada [0.9%]

 

Clark County, Department of Aviation, Sub-Ser A-2, RB

               

Callable 07/01/24 @ 100

               

5.000%, 07/01/35

   

3,000

     

3,555

 

Las Vegas, RB

               

Callable 06/15/21 @ 100

               

4.375%, 06/15/35(A)

   

3,500

     

3,493

 

Las Vegas, Special Improvement District No. 812, SAB

               

Callable 12/01/25 @ 100

               

5.000%, 12/01/35

   

1,000

     

1,057

 

Nevada State, Department of Business & Industry, Ser A, RB

               

Callable 12/15/25 @ 100

               

5.000%, 12/15/35(A)

   

1,595

     

1,688

 
                 

Total Nevada

     

9,793

 
                 

New Jersey [0.9%]

 

New Jersey State, Economic Development Authority, Continental Airlines Project, RB, AMT

               

Callable 08/20/22 @ 101

               

5.250%, 09/15/29

   

1,000

     

1,116

 

South Jersey Port, Ser S, RB

               

Callable 01/01/26 @ 100

               

5.000%, 01/01/39

   

750

     

819

 

Tobacco Settlement Financing, Ser 1A, RB

               

Callable 06/01/17 @ 100

               

5.000%, 06/01/41

   

7,500

     

7,212

 
                 

Total New Jersey

     

9,147

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 43

 


 

schedule of investments

September 30, 2016

City National Rochdale Municipal High Income Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

New Mexico [0.3%]

 

New Mexico State, Hospital Equipment Loan Council, RB

           

Callable 07/01/22 @ 100

           

5.500%, 07/01/42

 

$

3,110

   

$

3,468

 
                 

New York [6.5%]

 

JP Morgan Chase, Tender Option Bond Trust Receipts, Ser 2016-XM0195, RB

               

Callable 01/15/26 @ 100

               

9.100%, 07/15/45(C) (E)

   

3,335

     

4,245

 

Metropolitan Transportation Authority, Ser A-1, RB

               

Callable 05/15/25 @ 100

               

5.000%, 11/15/45

   

5,000

     

5,895

 

Nassau County Tobacco Settlement

               

Callable 11/03/16 @ 100

               

5.125%, 06/01/46

   

6,000

     

5,896

 

Nassau County, Industrial Development Agency, Ser A, RB

               

Callable 01/01/25 @ 101

               

6.700%, 01/01/49

   

4,789

     

4,921

 

Nassau County, Industrial Development Agency, Ser C, RB

               

Callable 01/01/18 @ 100

               

2.000%, 01/01/49

   

1,728

     

251

 

New York State, Convention Center Development

               

3.246%, 11/15/48(B)

   

10,000

     

3,474

 

New York State, Liberty Development, RB

               

Callable 11/15/24 @ 100

               

5.000%, 11/15/44(A)

   

10,000

     

11,508

 

New York State, Transportation Development, RB, AMT

               

Callable 08/01/21 @ 100

               

5.000%, 08/01/26

   

2,500

     

2,770

 

New York State, Transportation Development, RB, AMT

               

Callable 08/01/21 @ 100

               

5.000%, 08/01/31

   

7,000

     

7,644

 

New York State, Transportation Development, RB, AMT

               

Callable 07/01/24 @ 100

               

5.000%, 07/01/41

   

2,000

     

2,267

 

New York State, Transportation Development, RB, AMT

               

Callable 07/01/24 @ 100

               

5.000%, 07/01/46

   

2,000

     

2,262

 

New York State, Transportation Development, RB, AMT

               

Callable 07/01/24 @ 100

               

5.250%, 01/01/50

 

 

2,000

   

 

2,291

 

Niagara, Tobacco Asset Securitization, RB

               

Callable 05/15/24 @ 100

               

5.250%, 05/15/34

   

1,000

     

1,155

 

Niagara, Tobacco Asset Securitization, RB

               

Callable 05/15/24 @ 100

               

5.250%, 05/15/40

   

1,000

     

1,147

 

TSASC, Inc., Ser 1

               

Callable 10/19/16 @ 100

               

5.125%, 06/01/42

   

12,000

     

11,822

 
                 

Total New York

     

67,548

 
                 

North Carolina [0.1%]

 

North Carolina State, Medical Care Commission, RB

               

Callable 09/01/24 @ 100

               

5.000%, 09/01/37

   

1,155

     

1,255

 
                 

North Dakota [0.5%]

 

Burleigh County, Education Facilities, University of Mary Project, RB

               

Callable 04/15/26 @ 100

               

5.200%, 04/15/46

   

3,000

     

2,960

 

Mandan, Park Facilities, Ser A, RB

               

Callable 09/01/24 @ 100

               

3.250%, 09/01/41

   

2,450

     

2,389

 
                 

Total North Dakota

     

5,349

 
                 

Ohio [2.2%]

 

Buckeye Tobacco Settlement Financing Authority, Ser A-2, RB

               

Callable 06/01/17 @ 100

               

6.500%, 06/01/47

   

6,000

     

6,118

 

Muskingum County, Hospital Facilities Authority, Genesis Healthcare Systems Project, RB

               

Callable 02/15/23 @ 100

               

5.000%, 02/15/33

   

1,000

     

1,085

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 44

 


 

schedule of investments

September 30, 2016

City National Rochdale Municipal High Income Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

Muskingum County, Hospital Facilities Authority, Genesis Healthcare Systems Project, RB

           

Callable 02/15/23 @ 100

           

5.000%, 02/15/44

 

$

1,000

   

$

1,073

 

Muskingum County, Hospital Facilities Authority, Genesis Healthcare Systems Project, RB

               

Callable 02/15/23 @ 100

               

5.000%, 02/15/48

   

3,000

     

3,212

 

Ohio State, Air Quality Development Authority, Ser E, RB

               

5.625%, 10/01/19

   

3,350

     

3,661

 

Southeastern Ohio, Port Authority, Memorial Health System Project, RB

               

Callable 12/01/22 @ 100

               

6.000%, 12/01/42

   

7,000

     

7,990

 
                 

Total Ohio

     

23,139

 
                 

Oklahoma [2.1%]

 

Oklahoma County, Finance Authority, Ser A

               

Callable 04/01/22 @ 100

               

5.125%, 04/01/42

   

4,000

     

4,196

 

Oklahoma State, Development Finance Authority, RB

               

Callable 01/01/22 @ 100

               

6.000%, 01/01/32

   

2,030

     

2,177

 

Payne County, Economic Development Authority, RB

               

Callable 11/01/26 @ 100

               

6.625%, 11/01/36

   

2,500

     

2,621

 

Payne County, Economic Development Authority, RB

               

Callable 11/01/26 @ 100

               

6.875%, 11/01/46

   

7,250

     

7,679

 

Payne County, Economic Development Authority, RB

               

Callable 11/01/26 @ 100

               

7.000%, 11/01/51

   

5,250

     

5,569

 
                 

Total Oklahoma

     

22,242

 
                 

Oregon [0.2%]

 

Yamhill County, Hospital Authority, Ser S

               

Callable 11/15/24 @ 102

               

5.000%, 11/15/31

   

700

     

788

 

Yamhill County, Hospital Authority, Ser S

               

Callable 11/15/24 @ 102

               

5.000%, 11/15/36

 

 

130

   

 

144

 

Yamhill County, Hospital Authority, Ser S

               

Callable 11/15/24 @ 102

               

5.000%, 11/15/46

   

290

     

319

 

Yamhill County, Hospital Authority, Ser S

               

Callable 11/15/24 @ 102

               

5.000%, 11/15/51

   

1,120

     

1,230

 
                 

Total Oregon

     

2,481

 
                 

Pennsylvania [3.7%]

 

Beaver County, Industrial Development Authority, Ser A

               

4.375%, 01/01/35(C)

   

3,500

     

3,518

 

Beaver County, Industrial Development Authority, Ser B

               

4.250%, 10/01/47(C)

   

1,320

     

1,327

 

Delaware County, Industrial Development Authority, Chester Community Charter School Project, Ser A, RB

               

Callable 08/15/20 @ 100

               

6.125%, 08/15/40

   

4,730

     

4,742

 

Delaware County, Industrial Development Authority, Covanta Project, Ser A, RB

               

Callable 07/01/20 @ 100

               

5.000%, 07/01/43

   

2,500

     

2,563

 

Pennsylvania State, Economic Development Financing Authority, Ser A-RE, RB

               

Callable 09/01/25 @ 100

               

6.400%, 12/01/38

   

3,000

     

3,236

 

Pennsylvania State, Turnpike Commission, Ser A, RB

               

Callable 12/01/24 @ 100

               

5.000%, 12/01/33

   

1,500

     

1,785

 

Pennsylvania State, Turnpike Commission, Sub-Ser A-1, RB

               

Callable 12/01/25 @ 100

               

5.000%, 12/01/46

   

5,000

     

5,834

 

Pennsylvania State, Turnpike Commission, Sub-Ser E, RB

               

Callable 12/01/27 @ 100

               

6.375%, 12/01/17(D)

   

2,000

     

2,481

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 45

 


 

schedule of investments

September 30, 2016

City National Rochdale Municipal High Income Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

Philadelphia, Authority for Industrial Development, RB

           

Callable 12/15/21 @ 100

           

7.625%, 12/15/41

 

$

1,000

   

$

1,143

 

Philadelphia, Authority for Industrial Development, Mariana Bracetti Academy, RB

               

Callable 12/15/21 @ 100

               

7.150%, 12/15/36

   

2,280

     

2,557

 

Philadelphia, Hospitals & Higher Education Facilities Authority, Temple University Health Systems Project, Ser A, RB

               

Callable 07/01/22 @ 100

               

5.625%, 07/01/42

   

3,000

     

3,317

 

Pottsville, Hospital Authority, RB

               

Callable 07/01/26 @ 100

               

5.250%, 07/01/33(A)

   

2,020

     

2,445

 

Pottsville, Hospital Authority, Schuykill Health System Project, RB

               

Callable 07/01/24 @ 100

               

6.500%, 07/01/28

   

3,000

     

3,891

 
                 

Total Pennsylvania

     

38,839

 
                 

South Carolina [0.6%]

 

South Carolina State, Public Service Authority, Ser E, RB

               

Callable 12/01/23 @ 100

               

5.500%, 12/01/53

   

5,000

     

5,941

 
                 

Tennessee [0.9%]

 

Chattanooga, Health Educational & Housing Facility Board, RB

               

Callable 10/01/25 @ 100

               

5.000%, 10/01/35

   

1,000

     

1,170

 

Johnson City, Health & Educational Facilities Board, Mountain States Health Alliance Project, RB

               

Callable 07/01/20 @ 100

               

6.000%, 07/01/38

   

2,000

     

2,252

 

Shelby County, Health Educational & Housing Facilities Board, Ser A

               

Callable 09/01/26 @ 100

               

5.000%, 09/01/31

   

2,750

     

3,023

 

Shelby County, Health Educational & Housing Facilities Board, Ser A

               

Callable 09/01/26 @ 100

               

5.000%, 09/01/37

 

 

1,145

   

 

1,232

 

Shelby County, Health Educational & Housing Facilities Board, Ser A, RB

               

Callable 09/01/23 @ 100

               

5.500%, 09/01/47

   

1,000

     

1,078

 
                 

Total Tennessee

     

8,755

 
                 

Texas [9.8%]

 

Arlington, Higher Education Finance, Universal Academy Project, Ser A, RB

               

Callable 03/01/24 @ 100

               

7.000%, 03/01/34

   

400

     

427

 

Arlington, Higher Education Finance, Universal Academy Project, Ser A, RB

               

Callable 03/01/24 @ 100

               

7.125%, 03/01/44

   

2,300

     

2,443

 

Bexar County, Health Facilities Development, Army Retirement Residence Project, RB

               

Pre-Refunded @ 100

               

6.200%, 07/01/20(F)

   

3,250

     

3,862

 

Bexar County, Health Facilities Development

               

Callable 07/15/26 @ 100

               

5.000%, 07/15/41

   

2,000

     

2,266

 

Celina, SAB

               

Callable 03/01/23 @ 103

               

7.250%, 09/01/45

   

500

     

518

 

Celina, Lakes at Mustang Ranch Public Improvement District Phase 1 Project, SAB

               

Callable 09/01/20 @ 103

               

5.375%, 09/01/28

   

400

     

404

 

Celina, Lakes at Mustang Ranch Public Improvement District Phase 1 Project, SAB

               

Callable 09/01/20 @ 103

               

5.500%, 09/01/32

   

250

     

252

 

Celina, Lakes at Mustang Ranch Public Improvement District Phase 1 Project, SAB

               

Callable 09/01/20 @ 103

               

5.875%, 09/01/40

   

600

     

606

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 46

 


 

schedule of investments

September 30, 2016

City National Rochdale Municipal High Income Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

Central Texas, Regional Mobility Authority, Sub-Ser

           

Callable 01/01/26 @ 100

           

4.000%, 01/01/41

 

$

1,500

   

$

1,609

 

Central Texas, Regional Mobility Authority, Sub-Ser, RB

               

Callable 01/01/23 @ 100

               

5.000%, 01/01/33

   

1,000

     

1,158

 

Central Texas, Regional Mobility Authority, Sub-Ser, RB

               

Callable 01/01/23 @ 100

               

5.000%, 01/01/42

   

1,000

     

1,129

 

Grand Parkway Transportation, Toll Revenue, Sub-Ser B, RB

               

Callable 10/01/23 @ 100

               

5.000%, 04/01/53

   

2,000

     

2,309

 

Hackberry City, Public Improvement District No. 3, SAB

               

Callable 09/01/19 @ 103

               

6.750%, 09/01/28

   

500

     

530

 

Hackberry City, Public Improvement District No. 3, SAB

               

Callable 09/01/19 @ 103

               

7.000%, 09/01/33

   

475

     

510

 

Hackberry City, Public Improvement District No. 3, SAB

               

Callable 09/01/19 @ 103

               

6.625%, 09/01/37

   

450

     

477

 

Hackberry City, Public Improvement District No. 3, SAB

               

Callable 09/01/19 @ 103

               

6.750%, 09/01/44

   

525

     

556

 

Houston, Airport System Revenue, United Airlines Project, RB, AMT

               

Callable 07/01/24 @ 100

               

5.000%, 07/01/29

   

3,000

     

3,390

 

Houston, Higher Education Finance, Ser A, RB

               

Pre-Refunded @ 100

               

6.875%, 05/15/21(F)

   

5,300

     

6,670

 

JP Morgan Chase, Tender Option Bond Trust Receipts, Ser 2016-XM0196, RB

               

9.981%, 11/15/23(A) (C) (E)

   

5,000

     

6,364

 

Leander, Oak Creek Public Improvement District, SAB

               

Callable 09/01/19 @ 103

               

5.750%, 09/01/38

 

 

500

   

 

509

 

Leander, Oak Creek Public Improvement District, SAB

               

Callable 09/01/19 @ 103

               

5.875%, 09/01/44

   

500

     

509

 

McLendon-Chisholm, Sonoma Public Improvement District Project, SAB

               

Callable 09/15/20 @ 103

               

5.125%, 09/15/28

   

500

     

507

 

McLendon-Chisholm, Sonoma Public Improvement District Project, SAB

               

Callable 09/15/20 @ 103

               

5.500%, 09/15/40

   

375

     

381

 

McLendon-Chishom, Sonoma Public Improvement District Project, SAB

               

Callable 09/15/20 @ 103

               

5.375%, 09/15/35

   

400

     

406

 

Mission, Economic Development, RB, AMT

               

Callable 10/01/18 @ 103

               

5.750%, 10/01/31(A)

   

2,000

     

2,132

 

New Hope Cultural Education Facilities Finance

               

Callable 11/15/24 @ 102

               

5.000%, 11/15/36

   

1,020

     

1,153

 

New Hope Cultural Education Facilities Finance

               

Callable 11/15/24 @ 102

               

5.000%, 11/15/46

   

1,550

     

1,747

 

New Hope Cultural Education Facilities, RB

               

Callable 07/01/24 @ 102

               

5.000%, 07/01/36

   

2,500

     

2,628

 

New Hope Cultural Education Facilities, RB

               

Callable 07/01/24 @ 102

               

5.000%, 07/01/46

   

3,150

     

3,286

 

Newark Higher Education Finance, Ser A, RB

               

Callable 08/15/25 @ 100

               

5.500%, 08/15/35(A)

   

900

     

948

 

Newark Higher Education Finance, Ser A, RB

               

Callable 08/15/25 @ 100

               

5.750%, 08/15/45(A)

   

1,700

     

1,769

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 47

 


 

schedule of investments

September 30, 2016

City National Rochdale Municipal High Income Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

North Texas, Tollway Authority, Convertible Capital Appreciation Project, Ser C, RB

           

Callable 09/01/31 @ 100

           

7.000%, 09/01/23(D)

 

$

5,000

   

$

5,447

 

North Texas, Tollway Authority, Ser A, RB

               

Callable 01/01/26 @ 100

               

5.000%, 01/01/39

   

1,500

     

1,780

 

North Texas, Tollway Authority, Ser A, RB

               

Callable 01/01/26 @ 100

               

4.000%, 01/01/39

   

2,500

     

2,740

 

Sanger, Industrial Development Authority, Pellets Project, Ser B, RB, AMT

               

Callable 07/01/22 @ 100

               

8.000%, 07/01/38

   

4,950

     

4,313

 

Tarrant County, Cultural Education Facilities Finance, Buckingham Senior Living Community Project, RB

               

Callable 11/15/17 @ 100

               

5.750%, 11/15/37

   

6,000

     

6,181

 

Tarrant County, Cultural Education Facilities Finance, Buckingham Senior Living Community Project, RB

               

Callable 11/15/25 @ 100

               

5.500%, 11/15/45

   

4,100

     

4,592

 

Tarrant County, Cultural Education Facilities Finance, RB

               

Callable 05/15/17 @ 100

               

4.500%, 11/15/21

   

3,500

     

3,555

 

Tarrant County, Cultural Education Facilities Finance, Trinity Basin Preparatory Project, Ser A, RB

               

Pre-Refunded @ 100

               

7.300%, 06/01/19(F)

   

595

     

681

 

Texas State, Municipal Gas Acquisition & Supply I, Ser Senior D, RB

               

6.250%, 12/15/26

   

3,575

     

4,528

 

Texas State, Municipal Gas Acquisition & Supply III, RB

               

5.000%, 12/15/32

   

2,500

     

2,833

 

Texas State, Private Activity Bond Surface Transportation, LBJ Infrastructure Project, RB

               

Callable 06/30/20 @ 100

               

7.000%, 06/30/40

 

 

5,165

   

 

6,143

 

Texas State, Private Activity Bond Surface Transportation, NTE Mobility Project, RB

               

Callable 12/31/19 @ 100

               

6.875%, 12/31/39

   

5,350

     

6,315

 

Texas State, Private Activity Bond Surface Transportation, RB, AMT

               

Callable 12/31/25 @ 100

               

5.000%, 12/31/55

   

1,500

     

1,705

 
                 

Total Texas

     

102,268

 
                 

Virginia [2.1%]

 

Cherry Hill, Community Development Authority, SAB

               

Callable 03/01/25 @ 100

               

5.150%, 03/01/35(A)

   

1,000

     

1,078

 

Cherry Hill, Community Development Authority, SAB

               

Callable 03/01/25 @ 100

               

5.400%, 03/01/45(A)

   

2,000

     

2,168

 

James City County, Economic Development Authority, United Methodist Home Project, Ser A, RB

               

Callable 06/01/23 @ 100

               

6.000%, 06/01/43

   

4,690

     

4,451

 

Lower Magnolia Green, Community Development Authority, SAB

               

Callable 03/01/25 @ 100

               

5.000%, 03/01/45(A)

   

4,135

     

4,367

 

Tobacco Settlement Financing, Ser B1, RB

               

Callable 06/01/17 @ 100

               

5.000%, 06/01/47

   

1,560

     

1,524

 

Virginia State, College Building Authority, Marymount University Project, Ser A, RB

               

Callable 07/01/25 @ 100

               

5.000%, 07/01/35(A)

   

1,200

     

1,343

 

Virginia State, College Building Authority, Marymount University Project, Ser A, RB

               

Callable 07/01/25 @ 100

               

5.000%, 07/01/45(A)

   

5,110

     

5,622

 

 

See accompanying notes to financial statements.

 

CITY NATIONAL ROCHDALE FUNDS | PAGE 48

 


 

schedule of investments

September 30, 2016

City National Rochdale Municipal High Income Fund (continued)

 

Description

 

Face Amount (000)

   

Value (000)

 

Virginia State, Small Business Financing Authority, Elizabeth River Project, RB, AMT

           

Callable 07/01/22 @ 100

           

6.000%, 01/01/37

 

$

1,000

   

$

1,204

 
                 

Total Virginia

     

21,757

 
                 

Washington [1.7%]

 

Washington State, Housing Finance Commission

               

Callable 01/01/25 @ 102

               

5.000%, 01/01/36(A)

   

2,125

     

2,416

 

Washington State, Housing Finance Commission

               

Callable 01/01/25 @ 102

               

5.000%, 01/01/46(A)

   

3,250

     

3,670

 

Washington State, Housing Finance Commission

               

Callable 01/01/25 @ 102

               

5.000%, 01/01/51(A)

   

3,400

     

3,813

 

Washington State, Housing Finance Commission, Rockwood Retirement Community Project, RB

               

Callable 01/01/24 @ 100

               

7.500%, 01/01/49(A)

   

2,000

     

2,366

 

Washington State, Housing Finance Commission, Ser A

               

Callable 07/01/24 @ 102

               

5.000%, 07/01/36(A)

   

750

     

819

 

Washington State, Housing Finance Commission, Ser A

               

Callable 07/01/24 @ 102

               

5.000%, 07/01/46(A)

   

1,700

     

1,840

 

Washington State, Housing Finance Commission, Ser A

               

Callable 07/01/24