TORONTO, September 15, 2011 — RBC Global Asset Management Inc. (RBC GAM) announced the launch of eight RBC Target Maturity Corporate Bond Exchange-Traded Funds (ETFs). Effective today, the RBC ETFs are available for purchase by individual and institutional investors on the Toronto Stock Exchange.
“Clients and advisors have been enquiring about an ETF offering of this kind for some time and we are very pleased to be able to bring this innovative structure to market with the full backing and comprehensive capabilities of RBC Global Asset Management,” said John Montalbano, chief executive officer, RBC GAM. “The new suite of RBC ETFs illustrates our commitment to meeting the evolving needs of investors and delivering added value investment solutions that enable investors to construct diverse portfolios reflective of their individual profiles.”
Cary Blake, vice-president, RBC GAM, added, “We employed a thorough evaluation and rigorous research process that incorporated input from advisors and investors. The resulting RBC Target Maturity Corporate Bond ETFs fill a gap in the investment landscape, offering advisors increased flexibility to tailor their bond laddering strategies for clients, serve as a source of cash to match large known future liabilities, and capture perceived opportunities at particular points on the yield curve.”
The RBC Target Maturity Corporate Bond ETFs are designed to act like an individual bond yet provide the diversification and professional oversight of a mutual fund, with the transparency and intra-day liquidity of an ETF. Each RBC ETF provides investors with exposure to the Canadian investment grade corporate bond market by seeking to replicate the performance of the corresponding DEX Maturity Canadian Corporate Bond Index that matures in the same year as the RBC ETF.
|RBC Target Maturity Corporate Bond ETFs||TSX Symbol|
|RBC Target 2013 Corporate Bond ETF||RQA|
|RBC Target 2014 Corporate Bond ETF||RQB|
|RBC Target 2015 Corporate Bond ETF||RQC|
|RBC Target 2016 Corporate Bond ETF||RQD|
|RBC Target 2017 Corporate Bond ETF||RQE|
|RBC Target 2018 Corporate Bond ETF||RQF|
|RBC Target 2019 Corporate Bond ETF||RQG|
|RBC Target 2020 Corporate Bond ETF||RQH|
Each RBC ETF will maintain a diversified portfolio of individual Canadian investment grade corporate bonds, with effective maturity in the same year as the RBC ETF itself. Each RBC ETF may hold from time-to-time select provincial bonds for enhanced diversification. Like an individual bond, each RBC ETF will mature and terminate in its target year, distributing the remaining principal to then-current investors. The maturity of the respective RBC ETFs will occur on or about November 30 of the target year.
RBC Dexia Investor Services will provide custody and fund administration for the suite of RBC ETFs.
Commissions, management fees and expenses all may be associated with investments in exchange-traded funds. Please read the prospectus before investing. Funds are not guaranteed, their values change frequently and past performance may not be repeated. Fund units are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns. RBC ETFs do not seek to return any predetermined amount at maturity. Index returns do not represent RBC ETF returns. RBC ETFs are managed by RBC Global Asset Management Inc., an indirect wholly-owned subsidiary of Royal Bank of Canada.
RBC Global Asset Management (RBC GAM) is the asset management division of Royal Bank of Canada (RBC) which includes institutional money managers Phillips, Hager & North Investment Management (PH&N), RBC Global Asset Management (U.S.) and BlueBay Asset Management. RBC GAM is a provider of global investment management services and solutions to individual, high net worth and institutional investors through mutual funds, pooled funds, hedge funds, segregated accounts and specialty investment strategies. RBC GAM group of companies manage more than $250 billion in assets and approximately 1,000 employees located across Canada, the United States, Europe and Asia.
RBC Global Asset Management is part of RBC Wealth Management which is one of the world’s top 10 largest wealth managers. RBC Wealth Management directly serves affluent, high-net-worth and ultra-high-net worth clients in Canada, the United States, Latin America, Europe, the Middle East, Africa and Asia with a full suite of banking, 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, through its RBC Global Asset Management business (which includes BlueBay Asset Management). RBC Wealth Management has more than C$525 billion of assets under administration, more than C$310 billion of assets under management and approximately 4,500 financial consultants, advisors, private bankers and trust officers.