TORONTO, September 15, 2014 — RBC Global Asset Management Inc. (RBC GAM) today announced final details regarding the scheduled maturity of RBC Target 2014 Corporate Bond Index ETF (TSX: RQB).
As announced earlier this year, RBC Target 2014 Corporate Bond Index ETF will mature effective at the close of business on Friday, November 21, 2014. As a result, no direct subscriptions for units of RQB will be accepted after the close of business today, Monday, September 15, 2014.
Redemption requests for the RBC Target 2014 Corporate Bond Index ETF are expected to be accepted until the close of business on Thursday, November 13, 2014. RQB is anticipated to be voluntarily delisted from the TSX, at the request of RBC GAM, following the close of business on or about Tuesday, November 18, 2014. All units still held by investors following delisting will be subject to mandatory redemption on the maturity date of Friday, November 21, 2014.
The proceeds from RQB may be invested into a subsequent maturity of an RBC Target Maturity Corporate Bond ETF or utilized in a ladder strategy to help manage interest rate and reinvestment risk.
The RBC GAM family of fixed income ETFs includes eight Target Maturity Corporate Bond Index ETFs with maturities ranging from 2014 to 2021, along with the RBC 1-5 Year Laddered Corporate Bond ETF (TSX: RBO).
Unlike traditional ETFs, which have a perpetual life, target-maturity ETFs have a specified maturity date 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 fixed income 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 should decline as it approaches maturity, reducing sensitivity to interest rate changes.
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$350 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 five 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$700 billion of assets under administration, more than C$442 billion of assets under management and approximately 4,400 financial consultants, advisors, private bankers, and trust officers. For more information, please visit rbcwealthmanagement.com.
*Scorpio Partnership Global Private Banking KPI Benchmark 2014. 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.