TORONTO, March 21, 2014 - RBC Global Asset Management Inc. (RBC GAM) today announced that the RBC Target 2014 Corporate Bond Index ETF (TSX: RQB) will mature on Friday, November 21, 2014. This will be the second RBC Target Maturity Corporate Bond ETF to mature since the suite of fixed income ETFs was introduced in 2011.
“The RBC Target Maturity Corporate Bond ETFs seek to provide investors with a high quality and flexible fixed income solution that functions similar to a bond,” said Mark Neill, head of RBC ETFs. “By providing the maturity date in advance, our goal is to help investors make informed decisions on whether to hold their investment through to maturity or move their existing holdings to an alternative RBC ETF that matures at a later date.”
The RBC GAM family of fixed income ETFs includes eight Target Maturity Corporate Bond ETFs with maturities ranging from 2014 to 2021, along with the RBC 1-5 Year Laddered Corporate Bond ETF (TSX: RBO) that was launched earlier this year.
Unlike traditional ETFs, which have a perpetual life, target maturity ETFs have a specified maturity date that is established when the ETF is launched. When the ETF reaches the maturity date, the ETF’s final net asset value (NAV) is returned to the current unitholders.
A target maturity ETF’s portfolio contains securities that mature throughout its stated maturity year. This structure results in a duration profile similar to that of an individual bond, where the ETF’s duration can be expected to decline as it approaches maturity, reducing sensitivity to interest rate changes. These ETFs do not seek to return any predetermined amount at maturity.
For further information regarding RBC ETFs, please visit www.rbcgam.com/etfs.
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 and Phillips, Hager & North Investment Management. RBC GAM is a provider of global investment management services and solutions to individual, high-net-worth and institutional investors through mutual funds, exchange-traded funds, hedge funds, pooled funds, separate accounts and specialty investment strategies. RBC GAM group of companies manage more than C$315 billion in assets and have approximately 1,200 employees located across Canada, the United States, Europe and Asia. In 2013, RBC GAM was recognized as the fastest growing asset manager over the last five years among the world’s top 50 asset managers, and named as having the second highest growth in assets under management over the last five years+.
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$675 billion of assets under administration, more than C$411 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.
+Pensions & Investments/Towers Watson global 500 ranking: World’s Largest Asset Managers 2013.
*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.