TORONTO, September 15, 2016 – RBC Global Asset Management Inc. (RBC GAM) today announced final details regarding the scheduled maturity of RBC Target 2016 Corporate Bond Index ETF (TSX: RQD).
As announced earlier this year, RBC Target 2016 Corporate Bond Index ETF will mature effective at the close of business on Friday, November 18, 2016. In anticipation of its maturity, subscriptions for units of RQD will no longer be accepted after the close of business today, Thursday, September 15, 2016.
Redemption requests for RBC Target 2016 Corporate Bond Index ETF are expected to be accepted until the close of business on Thursday, November 10, 2016. RQD 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 15, 2016. All units still held by investors following delisting will be subject to mandatory redemption on the maturity date of Friday, November 18, 2016.
Investors have the option to either invest the proceeds from RQD 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 Target Maturity Corporate Bond ETFs includes six ETFs with maturities ranging from 2016 to 2021.
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.
Commissions, management fees and expenses all may be associated with investments in exchange-traded funds (ETF). Please read the prospectus or Fund Facts document before investing. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. ETF units are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns. RBC ETFs do not seek to return any predetermined amount at maturity. Index returns do not represent RBC ETF returns. RBC ETFs are managed by RBC Global Asset Management Inc., an indirect wholly-owned subsidiary of Royal Bank of Canada.
About RBC Global Asset 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 $385 billion in assets and have approximately 1,300 employees located across Canada, the United States, Europe and Asia.