RBC Global Asset Management Inc. announces maturity date of RBC Target 2013
Corporate Bond Index ETF
TORONTO, March 13, 2013 /CNW/ - RBC Global Asset Management Inc. today
announced that the RBC Target 2013 Corporate Bond Index ETF (TSX: RQA) will
mature on Friday, November 22, 2013. This will be the first RBC Target
Maturity Corporate Bond ETF to mature.
"Target maturity ETFs are still relatively new to Canadian investors," said
Mark Neill, head of RBC ETFs. "By providing the maturity date of the RBC
Target 2013 Corporate Bond Index ETF well in advance, our goal is to help
investors make informed decisions with respect to their bond portfolio. This
includes deciding whether to move their holdings into a subsequent maturity of
an RBC ETF or hold them through to maturity."
The suite of RBC Target Maturity Corporate Bond ETFs includes nine fixed
income corporate bond ETFs with maturities spanning from 2013 to 2021. These
ETFs provide target maturity exposure, enabling investors to build customized
portfolios tailored to their specific investment needs.
Unlike traditional ETFs, which have a perpetual life, target maturity ETFs
have a specified maturity date that is 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 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. These ETFs
do not seek to return any predetermined amount at maturity.
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, Phillips, Hager & North Investment Management and RBC Global
Asset Management (U.S.). RBC GAM is a provider of global investment management
services and solutions to individual, high-net-worth and institutional
investors through exchange-traded funds, hedge funds, mutual funds, pooled
funds, separate accounts and specialty investment strategies. RBC GAM group of
companies manages more than $280 billion in assets and has approximately 1,000
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$593
billion of assets under administration, more than C$353 billion of assets
under management and approximately 4,300 financial consultants, advisors,
private bankers and trust officers.
Jeff Keay, RBC GAM Communications, 416 955-0577 Leah Commisso, RBC GAM Media
Relations, 416 955-6498
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CO: RBC GAM
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-0- Mar/13/2013 14:00 GMT
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