VANCOUVER, February 11, 2010 - Phillips, Hager & North Investment Management Ltd. (PH&N) today launched a suite of institutional cash mutual funds intended to help treasury managers and others with similar responsibilities increase the return potential of their organization's short-term cash assets.
"We believe that treasury managers may capture additional investment returns by taking a portfolio of funds approach to managing their cash assets," said Damon Williams, head of RBC Global Asset Management, institutional client group, and PH&N President. "The biggest lesson from the recent credit crisis was the importance of credit analysis. Short-term corporate notes are an important component of money market returns but clients aren't necessarily in a position to hire the specialized staff required to invest in them directly. With RBC Institutional Cash Funds, clients benefit from the rigorous credit analysis performed by our team of in-house credit experts, while investing in a portfolio that matches their organization's short-term cash flows."
Designed to be used in combination, each RBC Institutional Cash Fund invests in a defined type of cash asset, allowing treasury managers to structure an investment portfolio that matches key characteristics of their organization's cash flows. The four new funds are:
The funds are conservatively managed by the PH&N fixed income team. Like other PH&N fixed income funds, they adhere to a multi-strategy approach. By their short-term nature, they emphasize disciplined credit research. The PH&N credit team has a proven track record in managing corporate bond funds and in contributing to returns in broader fixed income mandates. The RBC Institutional Cash Funds leverage that expertise to the benefit of short-term investors with defined liquidity and investment objectives. An online web-based tool will be launched shortly to allow treasury managers to access these funds and manage their organization's cash resources from their own desk.
The funds are considered to be appropriate investment vehicles for organizations with a minimum of $25 million in cash and cash equivalent assets domiciled in Canada. The RBC Institutional Cash Funds are offered pursuant to an Offering Memorandum as a private placement. Additional information is available through the RBC Institutional Cash Funds link on www.rbcgam.com.
NEW: Investment offerings for managing corporate and institutional cash resources.
RBC Global Asset Management (RBC GAM) comprises RBC Asset Management Inc. (RBC AM), Phillips, Hager & North Investment Management Ltd. (PH&N) and RBC Global Asset Management (U.S.) Inc. The group of companies form the asset management division of Royal Bank of Canada (RBC), a global institution with the reputation of stability and strength. Combined, RBC GAM group of companies manage approximately $200 billion in assets as at September 30, 2009. Website: www.rbcgam.com.
RBC GAM is part of RBC Wealth Management, which directly serves affluent and high net worth clients in Canada, the United States, Latin America, Europe and Asia with a full suite of investment, trust and other wealth management solutions. The business also provides asset management products and services directly and through RBC and third-party distributors to institutional and individual clients, and has more than $500 billion of assets under administration, over $245 billion of assets under management and more than 4,500 financial consultants, advisors, private bankers and trust officers.