New Release 2016/03/29 - Update Regarding 2016 Federal Budget and RBC Corporate Class Funds

News Releases

Update Regarding 2016 Federal Budget and RBC Corporate Class Funds

TORONTO, March 29, 2016 – The recently released 2016 Federal Budget includes a proposal to prevent the deferral of capital gains tax by investors in mutual fund corporations. The Federal Budget proposes to amend the Income Tax Act so that a switch between classes of shares of a mutual fund corporation will be considered to be a disposition at fair market value for tax purposes. The change will not apply to switches between different series of the same share class.

This proposal affects a number of mutual fund corporations across the industry, including the following RBC Corporate Class Funds (the Funds):

RBC Corporate Class Funds
RBC Balanced Growth & Income ClassRBC U.S. Equity Value Class
RBC Canadian Dividend ClassRBC U.S. Mid-Cap Value Equity Class
RBC Canadian Equity ClassRBC U.S. Small-Cap Core Equity Class
RBC Canadian Equity Income ClassRBC $U.S. Short Term Income Class
RBC Canadian Mid-Cap Equity ClassRBC QUBE Low Volatility Canadian Equity Class
RBC European Equity ClassRBC QUBE Low Volatility Global Equity Class
RBC Emerging Markets Equity ClassRBC QUBE Low Volatility U.S. Equity Class
RBC Global Equity ClassPH&N Canadian Equity Value Class
RBC Global Resources ClassPH&N Monthly Income Class
RBC International Equity ClassPH&N Overseas Equity Class
RBC North American Value ClassPH&N U.S. Multi-Style All-Cap Equity Class
RBC Short Term Income ClassBlueBay Global Convertible Bond Class (Canada)
RBC U.S. Dividend ClassBlueBay $U.S. Global Convertible Bond Class (Canada)
RBC U.S. Equity Class

The change is expected to take effect beginning on October 1, 2016. Until then, the Funds will continue to operate in the same manner as prior to the budget announcement. RBC Global Asset Management Inc. is awaiting further guidance from the Federal Government with respect to the implementation of the budget proposal.

Shareholders of the Funds may wish to speak with their financial advisor about their investment options.

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 BlueBay Asset Management and Phillips, Hager & North Investment Management. RBC GAM is a provider of global investment management services and solutions to institutional, high-net-worth and individual investors through separate accounts, pooled funds, mutual funds, hedge funds, exchange-traded funds and specialty investment strategies. The RBC GAM group of companies manage more than $380 billion in assets and have approximately 1,300 employees located across Canada, the United States, Europe and Asia.


Leah Commisso
Corporate Communications
RBC Global Asset Management
Canada and U.S.
Twitter Alerts

Global Investment Outlook

Our quarterly publication that provides a detailed global investment forecast, including updates on economic and capital markets.

Learn More >

Current Perspectives

There has been a lot of talk in the markets lately about the bond yield curve inverting and what that could signal for the economy. Read our latest insight.

Learn More