TORONTO, June 20, 2014 – RBC Global Asset Management Inc. (RBC GAM) today announced that security holders have approved changes to the investment objectives of RBC Managed Payout Solution - Enhanced Plus and RBC Asian Equity Fund, and have approved the reorganization and closure of certain RBC Corporate Class Funds.
Details of the changes are as follows:
RBC Managed Payout Solution - Enhanced Plus
Security holders approved an amendment to the fund's investment objectives that provides 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. effective June 23, 2014. The change will enable the fund manager to more efficiently diversify the fund's holdings. The fund will continue to provide monthly income with the potential for modest capital growth.
RBC Asian Equity Fund
Security holders approved an amendment to the fund's investment objectives that provides 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. effective June 23, 2014. The change will enable the fund to invest in units of RBC Asia Pacific ex-Japan Equity Fund and RBC Japanese Equity Fund, and will enable the fund manager to more efficiently manage the regional allocations within the fund. Additionally, the administration fee for Series A will be reduced from 0.20 per cent to 0.05 per cent, effective July 1, 2014. The administration fees for Advisor Series, Series D, and Series F will be reduced from 0.15 per cent to 0.05 per cent, effective July 1, 2014.
Reorganization and closure of certain RBC Corporate Class Funds
Security holders approved the reorganization and closure of certain RBC Corporate Class Funds (the Closing Funds) impacted by changes introduced in the 2013 Federal Budget. Subject to regulatory approval, mutual fund shareholders of each of the Closing Funds will receive mutual fund trust units of a corresponding RBC Fund or PH&N Fund, as set out in the table below. Each transaction will be considered a taxable disposition and will take effect after the close of business on or about September 12, 2014.
|Closing Funds (mutual fund shares)||Corresponding Funds (mutual fund trust units)|
|RBC Bond Capital Class||RBC Bond Fund|
|Phillips, Hager & North Total Return Bond Capital Class||Phillips, Hager & North Total Return Bond Fund|
|RBC High Yield Bond Capital Class||RBC High Yield Bond Fund|
|RBC Select Very Conservative Class||RBC Select Very Conservative Portfolio|
|RBC Select Conservative Class||RBC Select Conservative Portfolio|
|RBC Select Balanced Class||RBC Select Balanced Portfolio|
|RBC Select Growth Class||RBC Select Growth Portfolio|
|RBC Select Aggressive Growth Class||RBC Select Aggressive Growth Portfolio|
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$335 billion in assets and have approximately 1,200 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$690 billion of assets under administration, more than C$426 billion of assets under management and approximately 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.