TORONTO, March 31, 2014 — RBC Global Asset Management Inc. (RBC GAM) today announced proposed changes to certain RBC Private Pools and RBC Funds. Some of the proposed changes will be subject to unitholder and regulatory approval.
To reduce duplication of fund offerings that have similar investment objectives across RBC GAM fund families, the following RBC Private Pools and RBC Funds will be merging:
|Terminating Funds||Continuing Funds|
|RBC Private Global Bond Pool||RBC Global Bond Fund|
|RBC Private O’Shaughnessy Canadian Equity Pool||RBC O’Shaughnessy All-Canadian Equity Fund|
|RBC Private U.S. Mid-Cap Equity Pool||RBC U.S. Mid-Cap Equity Fund|
|RBC Private O’Shaughnessy U.S. Value Equity Pool||RBC O’Shaughnessy U.S. Value Fund|
|RBC Private European Equity Pool||RBC European Equity Fund|
|RBC Private Global Dividend Growth Pool||RBC Global Dividend Growth Fund|
|RBC Phillips, Hager & North Monthly Income Fund||Phillips, Hager & North Monthly Income Fund|
|RBC DS Canadian Focus Fund||Phillips, Hager & North Canadian Equity Value Fund|
|RBC DS U.S. Focus Fund||RBC U.S. Dividend Fund|
|RBC DS Balanced Global Portfolio||RBC Select Balanced Portfolio|
|RBC DS Growth Global Portfolio||RBC Select Growth Portfolio|
|RBC DS All Equity Global Portfolio||RBC Select Aggressive Growth Portfolio|
Effective June 27, 2014, unitholders of each series of each of the terminating funds set out above will receive units of the equivalent series of the corresponding continuing fund on a dollar-for-dollar and tax-deferred basis. Each of the terminating funds will be wound up following the mergers.
The Independent Review Committee of the RBC Private Pools and RBC Funds considered and approved the proposed mergers, after determining that the proposed mergers, if implemented, achieve a fair and reasonable result for each of the applicable funds.
Unitholders of the terminating funds will be sent a written notice detailing changes related to the mergers at least 60 days prior to the effective date.
Unitholders will have a right to redeem units of the terminating funds up to the close of business on the business day immediately preceding the effective date of the mergers.
Proposed Investment Objective Changes
Subject to unitholder approval, RBC Global Asset Management Inc. is proposing to change the investment objective of the RBC Managed Payout Solution – Enhanced Plus and the RBC Asian Equity Fund.
For the RBC Managed Payout Solution – Enhanced Plus, it is proposed that the investment objective be amended to provide the fund with flexibility to invest its assets primarily in units of other funds managed by RBC Global Asset Management Inc. or an affiliate of RBC Global Asset Management Inc. The proposed change will provide the fund with increased diversification and will allow the fund to continue to provide monthly income with the potential for modest capital growth.
For the RBC Asian Equity Fund, it is proposed that the investment objective be amended to provide the fund with flexibility to invest its assets primarily in units of other funds managed by RBC Global Asset Management Inc. or an affiliate RBC Global Asset Management Inc. The proposed change will enable RBC Asian Equity Fund to invest in units of RBC Asia Pacific ex-Japan Equity Fund and RBC Japanese Equity Fund and will enable the portfolio manager to more efficiently manage the regional asset allocations within the fund.
Due to its small size, limited asset growth potential and duplication with the investment mandate of the RBC Asian Equity Fund, RBC Global Asset Management Inc. plans to terminate the RBC Private Asian Equity Pool on or about June 27, 2014.
RBC Global Asset Management Inc. will seek the required unitholder approvals for the proposed investment objective changes at a special meeting to be held on or about Friday June 20, 2014, in Toronto, Ontario.
Notice of the meeting, together with a management information circular for the meeting containing full details of the proposals, will be mailed on or about Wednesday May 28, 2014, to unitholders of record as of Friday May 9, 2014.
If the necessary approvals are received, the investment objective changes will be effective as of June 23, 2014.
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 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.