TORONTO, September 15, 2015 — RBC Global Asset Management Inc. (RBC GAM) today announced final details regarding the scheduled maturity of RBC Target 2015 Corporate Bond Index ETF (TSX: RQC).
As announced earlier this year, RBC Target 2015 Corporate Bond Index ETF will mature effective at the close of business on Friday, November 20, 2015. In anticipation of its maturity, subscriptions for units of RQC will no longer be accepted after the close of business today, Tuesday, September 15, 2015.
Redemption requests for RBC Target 2015 Corporate Bond Index ETF are expected to be accepted until the close of business on Thursday, November 12, 2015. RQC 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 17, 2015. All units still held by investors following delisting will be subject to mandatory redemption on the maturity date of Friday, November 20, 2015.
Two potential options for clients are to invest the proceeds from RQC into a subsequent maturity of an RBC Target Maturity Corporate Bond ETF or to utilize the proceeds in a ladder strategy to help manage interest rate and reinvestment risk.
The RBC GAM family of fixed income ETFs includes seven Target Maturity Corporate Bond ETFs with maturities ranging from 2015 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.
About RBC Global Asset Management and RBC Wealth Management
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 $380 billion and have approximately 1,300 employees located across Canada, the United States, Europe and Asia.
RBC GAM 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 globally with a full suite of banking, investment, trust and other wealth management solutions, from our key operational hubs in Canada, the United States, the British Isles, and Asia. 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 GAM business. RBC Wealth Management has more than C$778 billion of assets under administration, more than C$503 billion of assets under management and approximately 4,050 financial consultants, advisors, private bankers, and trust officers. For more information, please visit www.rbcwealthmanagement.com
*Scorpio Partnership Global Private Banking KPI Benchmark 2015. 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.