TORONTO, January 15, 2014 – RBC Global Asset Management Inc. (RBC GAM) today announced the launch of four new Exchange Traded Funds (ETFs) specifically designed to meet investors' demand for investments generating regular monthly income. The new RBC Quant Dividend Leaders ETFs and RBC 1-5 Year Laddered Corporate Bond ETF are now available for purchase by advisors, individual and institutional investors on the Toronto Stock Exchange (TSX).
"As Canada's leading provider of income solutions, we are pleased to be able to leverage the breadth and depth of RBC GAM's investment teams' expertise in the development of new solutions," said Doug Coulter, president of RBC Global Asset Management Inc. "Our ongoing dialogue with advisors and investors has confirmed a strong interest in higher-quality investments with a focus on long-term income across a range of geographies. These new ETFs address those needs, offering superior construction and very competitive management fees."
RBC Quant Dividend Leaders ETFs
|TSX Symbol||Management Fee|
|RBC Quant Canadian Dividend Leaders ETF||RCD||0.39%|
|RBC Quant U.S. Dividend Leaders ETF||RUD||0.39%|
|RBC Quant U.S. Dividend Leaders ETF – US$||RUD.u||0.39%|
|RBC Quant EAFE Dividend Leaders ETF||RID||0.49%|
|RBC Quant EAFE Dividend Leaders ETF – US$||RID.u||0.49%|
Each RBC Quant Dividend Leaders ETF is managed by Bill Tilford, head of Quantitative Investments, RBC GAM and his team of portfolio managers and analysts. The management team employs a rigorous, rules-based investment approach to identify companies with higher than average dividend yields, strong balance sheets, positive market sentiment and potential for future dividend growth. The result is an ETF that provides exposure to companies that are dividend leaders.
The RBC Quant EAFE Dividend Leaders ETF is the first and only EAFE dividend ETF in Canada. The U.S. and EAFE Quant Dividend Leader ETFs are not currency hedged and are available for purchase in either Canadian dollar and U.S. dollar units on the TSX.
"We believe that these new dividend ETFs provide a superior level of portfolio diversification, quality and value with access to some of the most attractive dividend growth opportunities available in the market," said Mark Neill, head of RBC ETFs.
RBC 1-5 Year Laddered Corporate Bond ETF
|TSX Symbol||Management Fee|
|RBC 1-5 Year Laddered Corporate Bond ETF||RBO||0.25%|
The RBC 1-5 Year Laddered Corporate Bond ETF will provide exposure to a diversified portfolio of individual Canadian investment grade corporate bonds by holding the RBC Target Maturity Corporate Bond ETFs. The ETF offers the potential for a steady stream of income through exposure to a large, diversified portfolio of bond holdings.
"Today's launches bring our total number of RBC ETFs in the marketplace to 12. Adding these new dividend and laddered corporate bond options to our solutions suite enables advisors and investors to construct high-quality portfolios with leading dividend-paying companies, all with an experienced and trusted investment manager," Neill added.
In addition to the four new ETFs being launched today, RBC GAM also announced that it has reduced the management fee on seven of the existing RBC Target Maturity Corporate Bond ETFs, with maturity years ranging from 2015 through 2021, from 0.30 per cent to 0.25 per cent, effective today. The RBC Target 2014 Corporate Bond ETF had its management fee reduced to 0.20 per cent effective January 1, 2014, in accordance with its prospectus, as it entered its maturity year.
For further information regarding RBC ETFs, please visit www.rbcgam.com/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), and includes institutional money managers BlueBay Asset Management, Phillips, Hager & North Investment Management and RBC Global Asset Management (U.S.). RBC GAM is a provider of global investment management services and solutions to individual, high-net-worth and institutional investors through exchange-traded funds, hedge funds, mutual funds, pooled funds, separate accounts and specialty investment strategies. RBC GAM group of companies manage more than $300 billion in assets and have approximately 1,100 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$639 billion of assets under administration, more than C$387 billion of assets under management and over 4,400 financial consultants, advisors, private bankers, and trust officers. For more information, please visit www.rbcwealthmanagement.com.
*Scorpio Partnership Global Private Banking KPI Benchmark 2013. In the United States, securities are offered through RBC Wealth Management, a division of RBC Capital Markets, LLC, a wholly owned subsidiary of Royal Bank of Canada. Member NYSE/FINRA/SIPC.